ML20070G426
| ML20070G426 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley |
| Issue date: | 12/15/1982 |
| From: | Woolever E DUQUESNE LIGHT CO. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| 2NRC-2-045, 2NRC-2-45, GL-82-14, NUDOCS 8212220283 | |
| Download: ML20070G426 (128) | |
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*/{ % 2NRC-2-045 MM Nuclear Construction Division Robinson Plaza, Building 2, Suite 210 1.i.e d!!!!Eb December 15, 1982 Pittsbur0h, PA 15205 United States Nuclear Regulatory Commission Washington, D.C. 20555 ATTENTION: Mr. Harold D. Denton Office of Nuclear Reactor Regulation
SUBJECT:
BEAVER VALLEY POWER STATION - UNIT NO. 2 INFORMATION FOR ANTITRUST REVIEW FOR OPERATING LICENSE DOCKET NO. 50-412 Gentlemen: Duquesne Light Company, acting on its own behalf at.d as agent for Ohio Edison Company, The Cleveland Electric Illuminating Company, and The Toledo Edison Company, is filing herewith three signed original copies along with twenty copies of "Information for Antitrust Review for Operating License" for the Beaver Valley Power Station - Unit No. 2 as referenced in Generic Letter 82-14 entitled " Submittal of Documents to the Nuclear Regu-latory Commission". This submittal addresses the questions in U.S. NRC Regulatory Guide 9.3 as applicable to the above-named companies and for the period since the completion of the antitrust review at the Construction Permit Stage. DUQUESNE LIGHT COMPANY BY: E. J."Woolever Vice President [ LMG/rmc 2.778 j l Enclosures i 23 8212220283 821215 PDR ADOCK 05000412 M PDR a
1 l Jr+ l p i,g, ar- . ,r-i 4/f 4 2NRC-2-045 Tei copy Nuclear Construction DMsion RoNnson Plan, Building 2, Suite 210 December 15, 1982 Pittaburgh, PA 15205 United States Nuclear Regulatory Commission Washington, D.C. 20555 ATTENTION: Mr. Harold D. Denton Office of Nuclear Reactor Regulation
SUBJECT:
BEAVER VALLEY POWER STATION - UNIT NO. 2 INFORMATION FOR ANTITRUST REVIEW FOR OPERATING LICENSE ! DOCKET NO. 50-412 Gentlemen: Duquesne Light Company, acting on its own behalf and as agent for Ohio Edison Company, The Cleveland Electric Illuminating Company, and The Toledo Edison Company, is filing herewith three signed original copies along with twenty copies of "Information for Antitrust Review for Operating License" for the Beaver Valley Power Station - Unit No. 2 as referenced in Generic Letter 82-14 entitled " Submittal of Documents to the Nuclear Regu-latory Commission". This submittal addresses the questions in U.S. NRC Regulatory Guide 9.3 as applicable to the above-namer' companies and for the period since the completion of the antitrust review at the Construction Permit Stage. DUQUESNE LIGHT COMPANY BY: E. J."Woolever Vice President LMG/rmc 2.778 Enclosures 3 i 03
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8212220283 821215 PDR ADOCK 05000412 M PDR
Control Copy No. 2 C BEAVER VALLEY POWER STATION-UNIT 2 INFORMATION FOR ANTITRUST REVIEW I OF OPERATING LICENSE APPLICATION 7% Duquesnel@t 4 -_
' Application for >( an Operating License for Beaver Valley Power Station - Unit No. 2 INFORMATION REQUESTED BY THE
. NUCLEAR REGULATORY COhdISSION FOR ANTITRUST REVIEW ANSWERS OF THE DUQUESNE LIGHT COMPANY AEllDAlll STATE OF PENNSYLVANIA )
) SS:
COUNTY OF ALLEGHENY ) On December 15, 1982, before oe, a Notary Public in and for the 1 State and County aforesaid, personally appeared Mr. E. J. Woolever, who, [ af ter being duly sworn according to law, deposed and said that he is Vice
' President - Nuclear Construction of DUQUESNE LIGHT COMPANY, a corporation; that is such capacity he is authorized to make this Affidavit; and that the within Answers of DUQUESNE LIGHT COMPANY to the Information Requested by the Attorney General for Antitrust Review are true and correct to the , best of his knowledge, information and belief.
I D E. J.U Woolever - Vice President Nuclear Construction
- Sworn to and subscribed before me the day and year aforesaid.
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O N DUQUESNE LIGHT COMPANY Nuc1 car Regulatory Commission (10CFR Part 50) Licensing of Production and Utilization Facilities (' BEAVER VALLEY UNIT NO. 2 Information Needed by the Nuclear Regulatory Commission for Antitrust Review of Operating License Applications for Nuclear Power Plants as detailed in Regulatory Guide 9.3 [
t i I ( l Response of Duquesne Light Company to Regulatory Guide 9.3. B. Information Needed by the NRC Staff in Connection with Its Antitrust Review of Operating License Applications for Nuclear Power Plants. Item 1.a. - Anticipated Excess or Shortage in Generating Capacity Resources Not Expected at the Construction Permit Stage. During 1972, application for a construction permit was made for Beaver Valley Unit No. 2. Following were the OPEC oil embargo, as well as a period of eco-nomic uncertainty which still continues. This economic uncertainty, coupled with unexpected energy conservation, resulted in lower growth in electric peak loads and energy consumption than forecasted in the early and middle ( seventies. Ensuing forecasts of peak loads and energy consumption were re-vised downward, and starting in the middle seventies, the CAPCO Companies (Duquesne Light Company, The Cleveland Electric Illuminating Company, Ohio Edison Company, Pennsylvania Power Company, and The Toledo Edison Company) made several r? views and revisions of the construction schedules for future CAPCO generating capacity. In January 1980, the latest revision in the CAPCO construction schedule was made. The CAPC0 Companies decided to cancel four planned nuclear generating units (Davis-Besse Units Nos. 2 and 3 and Erie Units Nos. I and 2) and delay completion of Beaver Valley Unit No. 2 and Perry Units Nos. I and 2 for 12 to 36 mn ths . Growing political and regulatory uncertainties affecting the future of nuclear power resulting from the Three Mile Island accident, finan-( cial constraints and reduced need for future capacity were the primary rea-sons for the decision.
Additionally, as will be discussed in Item 1.b, in September 1980, the CAPCO Companies agreed to a termination of certain agreements, including the Memo-randum of Understanding, that resulted in the discontinuation of joint plan-ning among the CAPCO Companies with respect to future generating capacity. The projected capability changes for Duquesne Light Company,hereafter refer-red to as Duquesne, for the period 1981 through 1990 are shown in Table 1. The total generating capacity at the end of 1981 was 3,202 W NDC (net demon-l strated capability - winter rating). The major capability changes projected for Duquesne are: the decommis sioning of the Shippingport Atomic Plant dur-ing 1982 for a reduction of 48 W NDC; and the completion of Perry Unit No. I during 1984, Beaver Valley Unit No. 2 during 1986 and Perry Unit No. 2 during 1988, for increases in NDC of 165 W, 114 W and 165 W, respectively. The ( resulting total NDC capability for Duquesne at the end of 1988 is 3,589 W . Duquesne has not committed to any generating capacity additions beyond 1988. Changes in Duquesne generating capacity have been made since the antitrust review at the construction permit stage. One of these changes was the reor-dering of the sequence for completion of the three nuclear units now under construction; from Beaver Valley Unit No. 2 followed by Perry Units Nos. I and 2, to the present order, Perry Unit No. 1, Beaver Valley Unit No. 1 and Perry Unit No. 2. Another change was the construction of a third 800 W class coal unit at the Mansfield Power Plant located near the Beaver Valley Plant. Also, reratings of most generating units were made in early 1980 based on newly adopted ECAR (East Central Area Reliability Coordination Agreement) generating unit rating criteria. The fihal change was the shut-down of Shippingport Atomic Plant by the U. S. Department of Energy on
l I October 1, 1982 for decommissioning. The total generating capacity for the Duquesne system now projected at cut-in of Beaver Valley No. 2 in 1986 is eight megawatts lower than that projected in the early seventies for a 1978 cut-in. The peak load now forecasted at cut-in of Beaver Valley Unit No. 2 in 1986 is ten megawatts lower than that projected in the early seventies for a 1978 cut-in. In light of the above discussion, the analysis of the anticipated excess or shortage in generating capacity resources for Duquesne will be based on the current outlook on forecasted load growth and on projected capability changes. The latest annual peak load and energy forecasts for Duquesne are shown in k Table 2 for the period 1982 through 1992. The peak load is projected to occur each year durint; the month of July. The actual 1981 system peak load j was 2,522 W and the actual annual energy for load was 14,324 million KWH. The system peak load is forecasted to grow to 2,870 W by 1988 with the annual net energy for load to be 16,960 million KWH. The projected installed capacity for supplying the forecasted system peak loads is also shown on Table 2. Even though the installed capacity exceeds the peak load by a given amount, on a probability basis, a deficiency in gen-erating capacity can occur at any time during the year due to random unit-forced outages occurring. The deficiencies can be in varying amounts , from one W up to as much as 1000 W, and will cause a dependence on outside generating capacity resources. An estimate of such dependence on out s id e ( resources in days per year is shown in Table 2 for the Duquesne system. This
projected dependence on outside resources varies from a minimum of 17.7 days in 1989, the year af ter Perry Unit No. 2 will be commercial, to a maximum of 30.5 days in 1986, the year that Beaver Valley Unit No. 2 will be commercial. Also shown in Table 2 is the estimated maximum amount of purchased power re-quired periodically to reduce this dependence on outside resources to 0.1 and 1.0 day per year levels. The purchases required to reduce the dependence on outside resources to either a 0.1 or a 1.0 day per year level is generally in the range of 800 W and 500 W, respectively. Duquesne expects that pur-chases will be available over the interconnections in the amoants required when needed so that major load curtailment will not be necessary. l l l Comparison between the forecasted system sumer and winter peak loads and the projected installed generating capacity during these periods is made in Table
- 1. Also shown in Table 1 is the projected installed capacity reserve on peak, both in W and percent. Af ter 1981, the largest reserve on sumer peak is projected at 625 W or 21.8% of the forecasted sumer peak load for 1988, the same year that Perry Unit No. 2 will 'oe commerical. The smallest reserve on sumer peak is projected at 465 W or 17.7% of the forecast sumer peak load for 1983, one year prior to commercial operation of Perry Unit No.1.
Item 1.b. - New Power Pools or Coc;dinating Groups or Changes in Structure, Activities, Policies, Practices or Membership of Power Pools or Coordinating Groups, in which the licensee was, is or will be a Participant. In January 1980, fundamental changes in the CAPCO arrangements were made ( which affected both the capacity planning and operating procedures.
Joint capacity planning and commitments for jointly owned generating units as ( has been practiced in the past implies an ability on the part of each Party to finance and provide its share of capital fund s associated with a joint construction program. Prior to 1979 each of the CAPCO Parties, at one time or another, experienced considerable difficulty in financing on a reasonable basis its portion of the total requirements so that program adjustments were necessary as an accomodation. In the latter part of 1979 and early 1980, the financing problem became more critical requiring further substantial adjustments, including cancellation of four units, in the generating capacity program. To minimize the problem in the future the CAPCO Companies agreed in January 1980 to abandon the "one system" concept applicable to future capacity planning and authorization of ( additional generating units, so that each Party is now responsible for estab-lishing its own level of reserve, as well as to determine its own generating capacity program beyond those jointly owned generating units now under con-struction. Future joint construction would be possible through negotiations between two or more Parties, but not under the CAPCO concepts. Consistent with the above described changes, changes in the Operating Agree-ment were made. Since each Party would now determine its own level of re-serve generating capacity, the previous capacity adjustments among the Par-ties associated with the CAPCO Buy / Sells were eliminated as no longer appro-priate. ,This previous arrangement entitled each Party to utilize as required the full amount of emergency capacity and energy available within the Pool, and further provided that such capacity would be made available at no capac-( ity charge with the energy being banked. Here again, allowing each Party to
establish its own level of reserve made this prior arrangement inequitable. { As a result, the obligation to supply emergency capacity and energy was modi-fied and the banking of energy was eliminated. The revised Operating Agreement provides two forms of emergency capacity and energy identified collectively as CAPCO Back-Up Power. The first, identified as CAPCO Unit Back-Up Power, provides that in the event of the forced or l scheduled outage of any CAPCO jointly owned generating unit in commercial operation, each Party agrees to provide or shall have the right to receive, as the case may be, CAPCO Unit Back-Up Power, in the amount equal to the dif-ference between such Party's ownership share in the CAPCO unit out of service and a value determined by multiplying the capability of the CAPCO unit out of service by the percentage ownership share of such Party of all of the CAPCO ( jointly owned generating units in commercial operation. The second, identified as CAPCO System Back-Up Power, provides that in the event any Party, after giving effect to CAPCO Unit Back-Up Power, requires additional capacity, such Party shall be entitled to receive CAPCO System Back-Up Power up to 100 MW from each of the other CAPC0 Parties. This fea-ture was reviewed on August 1, 1982 and subsequently canceled by mutual agree-ment of all Parties. Item 1.c.(1) - Changes in Transmission With Respect to the Beaver Valley Plant. Since the completion of the antitrust review at the construction permit stage ( for Beaver Valley Unit No. 2, a decision has been made to make two changes to the transmission arrangements in the area of the Beaver Valley and Mansfield
Power Plants. ( These transmission rearrangements will be required with the cut in of Beaver Valley Unit No. 2 in 1986 as the fif th unit in the Beaver Valley-Mansfield complex, as opposed to being the fourth and last unit as proposed at the time of the antitrust review at the construction permit stage. The Beaver Valley Power Station is operated by Duquesne Light Company. The i Mansfield Power Station is operated by Pennsylvania Power Company, a wholly-owned subsidiary of Ohio Edison Company. These two power plants are inter-connected by the Beaver Valley-Mansfield 345 kV circuit, having a length of less than two miles. The existing Mansfield-Hanna 345 kV transmission cir-cuit, which extends from the Mansfield Power Station to Beaver Valley where 1 l it crosses the Ohio River and continues onward to the Hanna Substation of Ohio Edison Company, will be cut and looped into the 345 kV substation at Beaver Valley. This rearrangement will create both a Beaver Valley-Hanna and ) l a second Beaver Valley-Mansfield 345 kV circuit. The direct connection be- l tween the Mansfield Power Plant and the Hanna Substacion will be eliminated. The filing for the construction permit only indicated a Beaver Valley-Hanna 345 kV circuit addition. The need for a second Beaver Valley-Mansfield 345 kV circuit was indicated during load flow testing for contingency conditions, and was primarily due to the fact that the third 800 MW Mansfield unit ha,1 been added in the area. The second change to the transmission arrangements will be the installation of a 345 kV transmission circuit between Beaver Valley Power Station and the ( Crescent Substation of Duquesne, a distance of approximately 15.8 miles.
.. r .
I 1 I The need for a Beaver Valley-Crescent 345 kV circuit surfaced during stabil-ity testing at both Beaver Valley and Mansfield Plants. Without the Beaver Valley-crescent 345 kV circuit, instability could occur either at Beaver Valley or at Mansfield for certain fault conditions that required second zone clearing times at either plant. With the addition of the circuit, stability can be maintained. The transmission arrangement in the Beaver Valley-Mansfield generating com-plex is shown in Figure 1, as it will be at the cut-in of Beaver Valley Unit No. 2 in 1986. Item 1.c. (2) - Changes in Transmission With Respect to Interconnections ( Detailed in Item 1.c.(1) above is the rearrangement that will create a Beaver Valley-Hanna and the second Beaver Valley-Mansfield 345 kV circuit. These two circuits will pravide new interconnections between Duquesne and Ohio Edison Company and between Duquesne and Pennsylvania Power Company, respec-tively. Item 1.c.(3) - Changes in Transmission With Respect to Connections to Wholesale Customers At the time of the antitrust review at the construction permit stage, Pitcairn Borough was receiving emergency service from a 23 kV subtransmission ! circuit via pole-mounted trans formers. Monthly peak loads were in the range l l of 500 kW to 700 kW. This emergency service was required due to failure of (, portions of Pitcairn's generating capacity. During 1973 a permanent service
i I I l _9_ l at 23 kV was furnished from the 23 kV subtransmission system. During 1981, { monthly peak loads were in the range of 1,600 kW to 2,300 kW. Item 1.d. - Changes in Ownership or Contractual Allocation of the Output of the Nuclear Facility At the time of the antitrust review at the construction permit stage, divi-sion of ownership in the Beaver Valley Unit No. 2 among the CAPCO Parties had not been decided. Only a preliminary allocation of capacity had been made. Shortly thereaf ter, ownership allocations among the Parties were determined. During 1978, however, there was an adjustment in ownership allocation between the Ohio Edison Company and its wholly-owned subsidiary, the Pennsylvania Power Company, with the parent company assuming ownership of its subsidiary's ( share. The initial and final allocation of ownership on a percentage basis are tabulated below. Division of Ownership in Beaver Valley Unit No. 2 (%) Initial Final CEI 24.47 24.47 DL 13.74 13.74 OE 35.60 41.88 PP 6.28 --- TE 19.91 19.91 The reason for this change in ownership between Ohio Edison Company and Pennsylvania Power Company is listed in the Ohio Edison Company response to ( Item 1.d. i .
Item 1.e. - Changes in Design, Provisions or Conditions of Rate Schedules and Reasons for Such Changes j Duquesne Light Company provides service to municipalities for resale at re-tail under Rate Schedule F.P.C. No. 11. Currently, Duquesne serves only the Borough of Pitcairn under this rate schedule. Supplement No. 2 to Rate Schedule F.P.C. No. 11, which was in ef fect until August 19, 1978, consisted of a set of stepped demand and energy charges. The capacity charge consisted of 3 steps and the energy charge consisted of 2 steps. Effective August 19, 1978 the rate design was revised by Supplement No. 5 to Rate Schedule No. 11 to incorporate a monthly customer charge, a flat capacity charge consisting of a fixed charge per kilowatt for all kilowatts of demand, and a flat energy charge consisting of a fixed charge per kilowatt-hour for all kilowatt-hours ( of energy. This change in the design of the rate was made in order to more accurately reflect the cost of providing service to this rate schedule. The formula used in the calculation of the " Fuel Cost Adjustment Clause" was revised ef fective January 1,1976. This revision was made in order to comply with the fuel clause requirements of a Federal Power Commission Order dated November 13, 1974. Supplement No. 7 to Rate Schedule No. 11, a copy of which is included af ter the tables, increased the customer charge and the capacity charge. The ob-jectives of the design of the changed rate were to reflect costs and to pro-vide a return comparable to the system return. The energy price is now a single energy charge in the rate, and was adjusted due to the increase in the l base of the fuel adjustment clause. A substantial portion of the increased l ( 1
energy cost was covered by the Fuel Cost Adjustment Clause. The minimum charge provision was revised by increasing the cost per kilowatt to more l nearly reflect current costs. Item 1.f.(1) - List of All New Wholesale Customers Duquesne Light Company has acquired no new wholesale customers. Item 1.f.(2) - Transfers from One Rate Schedule to Another. Duquesne Light Company has had no transfers from one F.P.C. rate schedule to another. l Item 1.f.(3) - Changes in Licensees Service Areas. Duquesne Light Company has had no change in its service area. Item 1.f.(4) - Licensees, Acquisition or Mergers. Duquesne Light Company has not participated in any acquisition or merger. Item 1.g. - Generating Capacity Additions Committed for Operation Af ter the Nuclear Facility including Ownership Rights or Power Output Allocations. Duquesne Light Company has not authorized any generating capacity additions beyond Perry Unit No.1 in 1984, Beaver Valley Unit No. 2 in 1986, and Perry Unit No. 2 in 1988. See Table 1.
Item 1.h. - Susanary of Requests or Indications of Interest by Other Elec-tric Power Wholesale or Retail Distributors and Licensee's Response for any Type of Electric Service or Cooperative Venture or Study. By letter, dated December 29, 1978, Attorneys Robert A. Jablon and David R. Strauss gave notice to the CAPCO Companies, including Duquesne Light Company, of a general intent of the wholesale customers of Ohio Edison Company and the Ohio municipal customers of The Toledo Edison Company to obtain access to the Davis-Besse and Perry Units. By letter dated January 16, 1979, Duquesne responded and asked Attorney Jablon when he wanted to meet. By letter dated March 26, 1979, Attorneys Jablon and Strauss wrote to the CAPCO Companies , ( including Duquesne, and asked them to suggest a date and site for a meeting. By letter to Attorney Jablon dated April 18, 1979, Duquesne suggested that the parties meet in Pittsburgh and requested that Attorney Jablon send an agenda in advance. To date, Duquesne has received no response to its April 18,1979 letter and no specific meeting date has been requested or scheduled by Attorneys Jablon and Strauss. In a letter to Duquesne, dated April 3u, 1979, Joseph V. Sante.ngelo of the Borough of Ellwood City expressed an interest in buying power from Duquesne. In a letter, dated May 14, 1979, Duquesne responded that it did not have an appropriate tariff of general application for sale of electricity to a munic-1 ipality for resale, but was prepared to meet in Pittsburgh to discuss the re-quest at a mutually convenient time. To date, neither Mr. Santangelo nor any l of ficial of the Borough of Ellwood City has responded to Duquesne's May 14, 1979 invitation.
Item 2 - List and Discuss Those Actions or Policies Which Have Been Imple-mented in Accordance With Construction Permit Conditions Pertaining to Antitrust Aspects. There are no antitrust license conditions attached to Beaver Valley Unit No. 2 construction permit. With respect to Davis Besse Unit No. I and Perry Units No. I and 2, antitrust license conditions are attached to their respec-tive construction permits. It is the policy of Duquesne Light Company to comply with all license conditions. See Item 1.h. above. ( (
O N p DUQtESNE LIGHT COMPANY GENERATING CAPACITY PROGRAM 1981-1991 Based on 1981 Load Forecast Dated 10-26-81 Summer Capacity. Load and Reserveel Winter Capacity, Load and Reservea2 July July Sumner Available January January Winter Available DLCo. Generating Chances MW Capacity Load Reserves MW Capacity Load Reservoa Year / Description Change MW MW W % Change __ W W 90f 5 No 3,118 2,522 596 23.6 3,20 2' ! 1981 as of 12-31-81
+ 16 3,133 2,600 533 20.5 + 15 3,21 7 2,2D 5 1,012 45.9 1 1982 Cheswick Rerate (570) 1 Eastlake Derate (aummer) - 1
- 48 3,169 2,280 889 39.0 10 Shippingport Shutdown Net Change + 15 1983 Shippingport Shutdown - 48 3,085 2,620 465 17.7 3,169 2,265 904 39.9 1984 Perry #1 1205/165 +161 3,246 2,665 581 21.8 +165 3,334 2,340 994 42.5 5
1 1985 No Generation Changes 3,246 2,765 481 17.4 3,334 2,425 909 37.5 1986 8eaver Valley #2 831/'.14 +112 3,358 2,790 568 20.4 +114 3,448 5
- 245 3,424 2,425 999 41.2 3,334 2,835 499 17.6 3,424 2,445 979 40.0 1 1987 Eastlake #5 Derate - 24 1988 Perry #21205/165 +161 3,495 2,870 625 21.8 +165 3,589
- 2,480 1,109 44.7 5
1989 No Generation Changes 3,49 5 2,905 590 20.3 + 24 3,613 2,485 1,128 45.4
+ 24 3,519 2,925 594 20.3 3,613 2,500 1,113 44.5 1 1990 Eastlake #5 Rerate
- 1. Based on DL lowest total NSC Summer value (June, July and August) occurring in July; sisemer peak load could occur in June, July or Auguet.
Sumner 1981 based on actual data.
- 2. Based on DL January NSC; Winter peak load could occur in November or December of a given year or in January of the following years assumed to be January.
, 3. January POC of July capacity value listed.
- 4. January,1982 values.
- 5. Eastlake 5 derate effective 1-187. No seasonal.
- 6. Eastlake 5 rerste effective 1-1-90.
t System Planning Department Bulk Power Section h November 5, 1982 g w
% e DUQlESNE LIGHT COMPANY PROJECTED CAPACITY PROGRAM AND RESERVE ANALYSIS 1982-1992 DEPENDENCE ON OUTSIDE RES0tRCES Maximum MW Purchase Required to Reduce the Dependence on Annual Net Energy System Installed Installed Capacity Dependence on Outside Resources to**
for Load Peak Load Capacity Reserva on Peak Outside Resources 0.1 1.0 Year Millions of KWH (July-MW) (July-MW) y % in Days
- E D S D
15,080 2600 3133 533 20.5 18.8 750 480 1982 1983 15,380 2620 3085 465 17.7 29.7 845 580 1984 15,570 2665 3246 581 21.8 19.9 775 500 1985 16,240 2765 3246 481 17.4 22.9 825 535 1986 16,590 2790 3358 568 20.4 30.5 865 590 1987 16,770 2835 3334 499 17.6 22.5 820 530 16, % 0 2870 3495 625 21.8 18.6 775 495 1988 17,200 2905 3495 590 20.3 17.7 775 485 1989 17 ,270 2925 3519 59 4 20.3 17.7 775 485 1990 1991 17,500 2970 3519 549 18.5 21.4 815 525 1992 17,720 3010 3519 509 16.9 24.9 850 560 1
- Average r'. amber of days per year the system would be deficient in capacity to supply load without any outside purchases.
** Estimated maximum amount of purchased power required periodically to reduce the dependence on outside resources to the level indicated.
Capacity Additions DL $ Present N.D.C. Unit Schedule (Mf) Perry 1 (1205 MW) 5-1-84 165 BV 2 (833 MW) 5-1-86 114 Perry 2 (1205 MW) 5-1-88 165 u
l FIGURE I l BEAVER VALLEY-MANSFIELD t - GENERATING COMPLEX ( 345 KV SWITCHING DIAGRAM Hanna 9
- Ha ding Hoy dale BEAVER VALLEY MANSFIELD 138 kV ^^ ^^ CT wea^^^ 1& 2
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Duqueenc Light Company Supplccent No. 7 to Rate Schedule FPC No. 11 C. TERMS AND CHARGES MUNICIPAL RESALE SERVICE FOR PITCAIRN i AVAILABILITY Availabic to serve the municipality of Pitcairn purchasing electric service from the Company subject to the terms and conditions herein. Service: 60 Hertz, Alternating Currcnt, Unregulated, for use other than parallel operation.
- 1. Monthly Rate
( Customer Charge ------------- -----
$ 120.00 Capacity Charge All kilowatts of Demand ----- --------------- $ 8.86 per kilowatt Energy Charge All kilowatt-hours --------- - ------
1.95c per kilowatt-hour Minimum Charge The minimum charge shall oe $2.99 per kilowatt of the Billing Demand. Fuel Cost Adjustment Bills rendered under this schedule are subject to the Fuel Cost Adjustment Clause included in this Tariff. l (
- 2. Untransformed Service Where Pitcairn takes all of its electric service directly fron the Company's available transmission system, and furnishes all necessary equil ment to take untransformed service, a monthly reduction based upon the Lilling Demand of such service shall be allowed as follows:
First 50 kilowatts at 20 cents per kilowatt. Next 550 kilowatts at 13 cents per kilouatt. Excess over 600 kilowatts at 7 cents per kilowatt.
- 3. Prompt Payment Discount The above rate states net prices. Standard bills will show the net amount and a gross amount 1% greater than the net amount. Upon payment of the bill within 30 days from the mailing date a prompt payment discount cqual to the difference between the gross and net amounts will be allowed. After expiration of 30 days from the mailing date, interest vill accruc on the unpaid gross amounts at the monthly rate of 1/2 of one percent.
- 4. Deternination of Billine Demand Individual Demand will be the average kilouatts during the fif teen-minute period of greatest kilowatt-hour use during the ronth. Individual demands will be adjusted for power factor by multiplying by 0.8 + (0.6 ReactiveKilowatt-hours Kilovolt-senere hours ), where such multiplier vill be not less than 1.00 nor more than 2.00. f The Billing Demand will not be less than 60% of the highest individual Demand of the last 11 months nor less than 60% of the Contract Demand whichever is greater. 1 Billing Demand is referred to in the Monthly Rate as Demand.
( . 1,3
DUQUESNE LIGHT COMPANY Duquesnc Light Company , Supplement No. 7 to R2tc Schedule F.P.C. No. 11 Fuel Cost Adjustment Clause Duquesne Licht Company Rate Schedule FPC No. 11 - Suppicment No. 7 On and after April 1, 1981, a fuel cost adjustment shall be applied to sach bill for service rendered to a customer on and after April 1,1981 as deter-mined by multiplying (a) the number of kilowatt-hours consumed by the customer during the period for which the bill is rendered, by (b) the fuel cost adjustment, rounded to the nearest thousandth of a cent, determined as hereafter prescribed. The fuel cost adjustment shall be determined each billing month cccording to the formula: A= ( 2 ) x 0.97 x y in whicii the symbols have meanings as follows: A is the fuel cost adjustment to be applied upon bills rendered during a billing conta. F is the sum of (a) cost of fossil fuel from Account 151 and the cost of nuclear fuel from Account 518 consumed by the Company, or for its account, (b) the actual identifiable fossil and nuclear fuel costs associated with energy purchased, (c) the net energy cost of energy purchases, exclusive of capacity or demand charges (irrespective of the designation assigned to such transaction) when such energy is purchased on an economic dispatch basis, less (d) the cost ( of fossil and nuclear fuel recovered through inter-system sales including the fuel costs related to economy energy saics and other caergy sold on an economic dispatch basis in the current (c) and base (b) periods. The "Fc" factor is the cost for the second calendar conth preceding the billing nonth. S is the number of kilowatt-hours sold in the current (c) and base (b) periods, excluding inter-system sales. The "Sc" factor is the kilowatt-hour sales for the second calendar month preceding the billing month. Fb g is the base fuel cost of 1.3793 cents per kilowatt-hour. T is the Pennsylvania gross receipts tax rate in effcet during the billing month, expressed as a decimal. The 0.97 applied in the formula is an adjustment for losses to the delivery voltage level. This Fuel Cost Adjustment Clause supersedes the provision providing for adjustments in the cost of fuel contained in Duquesne Light Company Rate Schedule FPC No. 11 - Supplement No. 3.
Applicat' ion for Operating License for Beaver Valley Power Station, Unit 2 INFDRMATION REQUESTED BY WE NUCLEAR REGULATORY COMMISSION IN CONNECTION WIE ITS ANTITRUST REVIEW ANSWERS OF OHIO EDISON COMPANY AffIDA111 State of Ohio )
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County of Summit ) On December 13, 1982, before me, a Notary Public in and for the State and County aforesaid, personally appeared Justin T. Rogers, Jr., who, after being duly sworn according to law, deposed I and said that he is President of Ohio Edison Company, an Ohio corporation; that in such capacity he is authorized to make this Affidavit; and that the within Answers of Ohio Edison Company to the Information Rec;uested by the Nuclear Regulatory Commission in connection with its Antitrust Review are true and correct to the best of his knowledge, information and belief. b Q ustin T. Roger . Sworn to and subscribed before me the day and year aforesaid. f tb- f/t:40 i - / Notary Public {' BET: a nw ., r~ T:: Mr Cs=.r&12: L.c . 'ua
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' 6HIO EDIS0_N COMPANY Nuclear Regulatory Commission
'(10CFR Part 30)
Licensing of Production and Utilization Facilities N
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I BEAVER VALLEY POWER STATION UNIT 2 Information Needed by the_ Nuclear __ Regulatory Com- _m_ission for Antitrust Review of Operating License
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Applications for Nuclear Power Plants as d_etailed-in Regulatory Guide 9.3 j
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' RESPONSE OF OHIO EDISON COMPANY Item 1.a.
- 1) Anticipated excess or shortage in generating capacity resources not expected at che construction 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.
For purposes of this response, Ohio Edison System, which includes its subsidiary Pennsylvania Power Company, has interpreted an " excess or shortage"' in generating capacity resources to mean any anticipated difference between total cepability and peak load requirements. When this difference is an excess, usually referred to as reserves, it provides for unforeseen capacity resource outages, planned outages of capacity resources and other deratings. The reserve therefore permits k supplying peak load requirements in a reliable manner. All information and calculations which follow are premised upon this definition. _RESULTS Information regarding the Ohio Edison System's capability, peak load and margin forecasts is sununarized-in Tables I through 5. Tables 1 and 2 present current 1982 estimates of these for the summer and winter periods, respectively, for the years 1982-1986. The estimates anticipate the completion of Beaver Valley Unit 2 in 1986. Tables 3 and 4 present corresponding contruction stage 1972 forecasts for the summer and winter periods, respectively, for the years 1972-1978. In these projections, Beaver Valley Unit 2 completion was scheduled for 1978. For each year projected, total capability was determined to exceed anticipated load requirements, thereby resulting in reserves.
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l Table 5 represents a comparison between the current forecast and the forecast made at the const:;' ion permit stage. The comparison contrasts load, capability, and margin data for the years in which the unit was scheduled to commence operation. Since current load projections are icwer than those formerly made, the current peak load forecast for 1986 is lower than the 1972 load projection for 1978. On the other hand, the change in the Beaver Valley Unit 2 in-service date from 1978 to 1986 precipitated a change in the in-service date of other generating units. Hence, additional generating capacity is included in the current Ohio Edison System capability forecast for 1986 as compared to the 1972 capability estimate made for 1978. As a result of these two factors, there is a net increase in projected reserve capacity for the year of completion. As Table 5 indicates, the margin of reserves currently forecast for 1986 represents an increase over the margin forecast in 1972 ( for 1978 of 1045 W at the time of projected summer peak load and 1022 W at the time of projected winter peak load. REASONS FOR CHANGE IN EXCESS CAPACITY (RESERVES)_ l Prior to 1973, times were relatively untroubled and uncomplicated I in the electric industry. Sales and peak demand had been going up rapidly and consistently. One could, up to that time, lay a ruler along a trend line of growth and produce an accurate prediction of future growth. In mid-1973, however, this situation began to change significantly. The Arab 011 Embargo of late 1973 and early 1974 forced America to face fuel shortages for the first time in many years. Public attitudes
REASONS FOR CHANGE IN EXCESS CAPACITY (RESERVES)_ - (Cont.) , began to shift toward conservation, and government policy reflected an ever increasing desire to reduce dependency upon outside resources. The result for Ohio Edison was erratic short term load growth which ultimately developed into lower long term growth. Higher inflation rates accompanied this, limiting construction funds t which were already stretched by inflation. Since 1974, five schedule revisions of generating capacity entailing individual unit delays of up to 97 months, and in total averaging almost 6 years, were made. On January 22, 1980, increased uncertainty about nuclear viability, topped off by the adverse effects of Three Mile Island, combined with financial difficulties, resulted in a decision of the CAPCO Companies l l to terminate their last 4 nuclear units (Davis-Besse 2 and 3 and i Erie 1 and 2). In order to further improve its financial position, ( Ohio Edison System agreed to reallocate 80 MW of its ownership in each of the Perry units to CEI. As part of the agreement, Ohio Edison , System will purchase 80 IN of power from CEI for an 18-month period following the in-service date of Perry 1. Further capacity reductions resulted from the recent rerating of all generating units within the Ohio Edison System. The reratings represent the testing of units under more stringent conditions, as I established by the East Central Area Peliability Council (ECAR) within the past year. Although Ohio Edison's participation in this program was voluntary, the Company adopted its use in an effort to standardize , capability ratings with other utilities and in the belief that the l f new ratings better reflect the actual capacity to be expected from a given unit. ;
Although CAPCO has extensively reduced its capacity, including the termination of 4 units representing approximately 4200 MW, its reserve margin has increased. This is attributable to the substantial reduction in projected load growth which has declined at a rate outpacing the capacity reductions. USE OF RESERVES Ohio Edison capacity in excess of peak load requirements is to
, be utilized as capacity reserves for the Ohio Edison System.
The need for adequate reserves in capacity planning has long been established. Because electricity cannot be stored in quantities needed for power supply purposes, supply and demand must be in continuous balance, instant by instant. This, in turn, requires that ( generating facilities must be in place and must be in operation in anticipation of the load to be served. Physical limitations on the generating equipment also require reserves. Generating units must be taken out of service periodically 4 for lengthy periods to undergo positive preventative maintenance and , l overhaul. Nuclear-fueled units require down time for refueling. All units are subject to total or partial outages and/or derating due to such factors as equipment failure, normal wear, and seasonal variation in ambient air ac.d water conditions. 1 When a deficiency in capacity persists for a long period, considerable problems are likely to occur. Inevitably, a deficiency degrades reliability with insidious and subtle consequences long before customer service is actually curtailed. The deficiency would tend to interfere ( with scheduled preventive maintenance. If preventive maintenance cannot be performed, forced outages and capacity curtailments will increase.
In addition to being used as capacity reserves, some of the Ohio Edison capacity in excess of peak load requirements might be utilized for power sales to other utilities. Such sales would take place only to the extent that Ohio Edison would maintain adequate system I reliability. The extent of any power sales would also of course depend on the needs of other utilities to purchase power. Power purchases by other utilities might be made to replace power generated using high cost imported oil, or to replace power plants which were cancelled or damaged. Because of a current absence of long-term power sales agreements, it is impossible to project at this time the amount of power sales, if any, which will be made from the Ohio Edison System on or after the completion of Beaver Valley Unit 2. I I (
Table 1 Ohio Edison System Current Projections Loads, Capabilities & Margins For the Years 1982-1986 Summer (MW) Beaver Valley 2 scheduled for completion in Summer, 1986 g 1983 1984 Net Demonstrated Capability 5686 5686 6191+ Seasonal Derating 95 97 108+ Net Seasonal Capability 5591 5589 6083 OE Service Area REC's 60 55 60 i Share of OVEC Avail. Cap. 237 159 159 WCOE Purchase 54 61 - Total Capability . 5942 5864 6302 Projected Peak Load 4315 4405 4480 , ( Margin 1627 1459 1822 l i l 1985 1986 Net Demonstrated Capability 6191+ 6460 Seasonal Derating 108+ 111 Net Seasonal Capability 6083 6349 OE Service Area REC's 60 60 Share of OVEC Avail. Cap. 159 159 i Total Capability 6302 6568 , Projected Peak Load 4565 4650 Margin 1737 1918 i i
+ Includes 80 MW purchase from CEI, less seasonal derating. - i t
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1 Table 2 ( Ohio Edison System Current Projections Loads, Capabilities & Margins For the Years 1982-1986 Winter (MW) Beaver Valley 2 scheduled for completion in Summer, 1986 1982 1983 1984 Net Demonstrated Capability 5686 5686 6191+ Seasonal Derating 0 0 0 Net Seasonal Capability 5686 5686 6191 OE Service Area REC's 105 110 110' Share of OVEC Avail. Cap. 171 171 171 Total Capability 5962 5967 6472 Projected Peak Load 4270 4355 4450 Margin 1692 1612 2022 ( 1985 1986 Net Demonstrated Capability 6111 6460 Seasonal Derating 0 0 Net Seasonal Capability 6111 6460 OE Service Area REC's 115 120 Share of OVEC Avail. Cap. 171 159 Total Capability 6397 6739 Projected Peak Load 4550 4645 Margin 1847 2094
+ Includes 80 MW purchase from CEI, less seasonal derating.
( Table 3 Ohio Edison System 1972 Projections (Data Package 3) Loads, Capabilities & Margins For the Years 1972-1978 Sununer (MW) Beaver Valley 2 scheduled for completion in Sumner, 1978 1972 1973 1974 1975 Net Seascnal Capability 3886 4019 4129 5175 l OE Service Area REC's 40 42 45 48 Share of OVEC Avail. Cap. 206 206 206 105 Total Capability 4132 4267 4380 5328 Projected Peak Load 3580 3805 4045 4300 Margin 552 462 315 1026 ( 1976 1977 1978 Net Seasonal Capability 5531 5531 5881 OE Service Area REC's 50 54 57 Share of OVEC Avail. Cap. 105 105 105 Total Capability 5686 5690 6043 Projected Peak Load 4575 4860 5170 Margin lill 830 873 (
Table 4 Ohio Edison System 1972 Projections (Data Package 3) Loads, Capabilities & Margins Winter (MW) Beaver Valley 2 scheduled for completion in Summer, 1978 1972 1973 1974 1975 Net Seasonal Capability 3966 4146 5051 5306 OE Service Area REC's 65 69 74 78 Share of OVEC Avail. Cap. 221 221 221 119 Total Capability 4252 4436 5346 5503 Projected Peak Load 3520 3755 4010 4285 Margin 732 681 1336 1218 1976 1977 1978 ( Net Seasonal Capability 5671 5671 6029 OE Service Area REC's 82 88 94 Share of OVIC Avail. Cap. 119 119 119 Total capability 5872 5878 6242 Projected Peak Load 4575 4860 5170 Margin 1297 1018 1072 ( 1 1
Table 5 Ohio Edison System Data Comparison Beaver Valley 2 Completion Dates (MW) Beaver Valley 2 Original Completion Forecast of 1978 Current Completion Forecast of 1986 1978 1986 Change Summer Total Capability 6043 6568 525 Projected Peak Load 5170 4650 -520 873 1918 1045 Margin 1978 1986 Change Winter ( Total Capability 6242 6739 497 Projected Peak Load 5170 4645 -525 1072 2094 1022 Margin
Item 1.b (' New power pools or coordinating groups or changes in structure, activities, policies, practices, or membership of power pools or coordinating groups in which the licensee was, is, or will be a participant. Ohio Edison Company and its subsidiary, Pennsylvanin Power Company, are members of the Central Area Power Coordinating Group ("CAPC0") which was formed in September of 1967, but which has changed or agreed to change certain of their activities, policies, and practices since the antitrust review at the construction permit stage. These changes are more fully described in the response of Duquesne Light Company and The Cleveland Electric Illuminating Company filed herewith. ( ( 1 l
Item 1.c. Changes in transmission with respect t_o (1) the nuclear plant, (2) interconnections, o_r _(3)_ connections to wholesale customers In this section, CEI refers to The Cleveland Electric Illuminating Company, DL to Duquesne Light Company, OES to Ohio Edison System, OP to Ohio Power Company and TE to Toledo Edison.
- 1) The following changes in transmission with respect to the nuclear plant have been made since completion of the antitrust review at the construction permit stage:
- a. The 345 kV Beaver Valley (DL) to Hanna (OES) circuit, originally submitted as an addition with Beaver Valley Unit 2, was subsequently extended to Mansfield Power
( Plant (OES) to form a Mansfield Power Plant to Hanna Substation circuit.
- b. The Mansfield Power Plant (OES) to Hanna (OES) 345 kV lined noted above passes near the Beaver Valley Power Station, and is scheduled to be looped into the Beaver Valley Power Station in 1986, thus forming a second Beaver Valley-Mansfield Power Plant circuit and a Beaver Valley (DL)-Hanna (OES) circuit.
- c. Also in 1986, with the addition of Beaver Valley Unit 2, a 345 kV transmission circuit is scheduled to be put in service extending between the Beaver Valley Power Station (DL) and Crescent Substation (DL).
- 2) The following changes in interconnections have occurred or will occur within the Ohio Edison System (OES) since the completion of the antitrust review at the construction permit stage:
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- a. A 345 kV transmission interconnection with Duquesne Light Company was placed in service in 1972. The circuit extends between the Beaver Valley Power Station (DL) and the Shenango Substation (OES).
- b. A 345 kV transminision interconnection with The Cleveland Electric Illuminating Company (CEI) and Ohio Power Company (OP) was placed in service in 1972. This single interconnection point was established by looping the then existing Canton Central (OP)-Juniper (CEI) 345 kV circuit into a newly developed Hanna (OES) Substation.
- c. A 138 kV transmission interconnection with CEI was placed in service in 1974. The circuit extends between the Johnson Substation (OES) and the Lorain Switching Station (CEI), thus constituting a second circuit between these two points.
- d. A 345 kV transmission interconnection with Toledo Edison (TE) was placed in service in 1975. The circuit extends between the Davis Besse Nuclear Power Plant (TE) and the Beaver Substation (OES).
- e. The 345 kV Beaver Valley-Shenango (OES) interconnection with Duquesne Light Company was replaced by two 345 kV interconnections.
At the Mansfield Plant, this was changed to form the Beaver Valley-Mansfield (OES) and the Crescent-Mansfield (OES) interconnections with Duquesne Light Company in 1975.
- f. The Sammis (OES)-South Canton and South Canton-Star (OES) 345 kV interconnections with Ohio Power Company were previously metered together and considered a single interconnection. Today they are separately metered and have been classified as separate interconnections.
- g. A 345 kV transmission interconnection with CEI was placed in service in 1981. The circuit extends between the Avon Power Plant (CEI) and the Beaver Substation (OES). This constitutes the second circuit between these two points.
- h. A 345 kV transmission interconnection with CEI is scheduled to be put into service around 1985. This circuit will extend between the Mansfield Power Plant (OES) and the Harding Substation (CEI).
- i. The 345 kV Ohio Edison Mansfield-Hanna line, which currently passes near Duquesne Light's Beaver Valley Power Station is scheduled for modification in 1986. The line will be changed to form a second Beaver Valley (DL)-Mansfield (OES) 345 kV interconnection (the first discussed in item e. above) and a Beaver Valley (DL)-Hanna (OES) 345 kV interconnection.
These changes are reflected in the following table: ( Ohio Edison System Interconnections (In Service and Planned) Year 345kV 138kV 69kV 45.5kV Total 1971 6 13 5 1 25 ! 1972 8 13 5 1 27 1974 8 14 5 1 28 1975 10 14 5 1 30 1978 11 14 5 1 31 1981 12 14 5 1 32 1985 13 14 5 1 33 1986 15 14 5 1 35
- 3) Two changes have occurred in Ohio Edison's wholesale customers' connections between 1972 and 1992. They are:
- a. The City of Newton Falls, previously generating its own power, was added as a wholesale customer in 1977. The City is served via the Newton Falls Substation at 69 kV.
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- b. The City of Niles, previously served at a voltage of 23 kV, is now served at 138 kV. The first phase of this change was completed in December, 1977, and the second phase was completed in April, 1978.
The Cuyahoga Falls power system, currently being served at 23 kV, is to be changed to 138 kV service at some time in the future. The , I exact date has not yet been determined, but is likely to be in the mid-to-late 1980's. i t m i 6 l I { t
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Item 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. On May 1, 1977, the CAPCO Companies agreed that Ohio Edison Company (OEC) would increase its ownership share in Beaver Valley Unit 2 from - 35.60% to 41.88% while Pennsylvania Power Company (PPC) would reduce its ownership share in the unit from 6.28% to zero. This reallocation of ownership shares in Beaver Valley Unit 2 between OEC and PPC was made to improve the balance between the respective needs and capabilities of those two companies. There was no change in the other CAPCO Companies' ownership shares in the unit. The ownership shares of the CAPCO Companies in Beaver Valley Unit 2 before and after the May 1, 1977, reallocation are as follows: I Percent Ownership Percent Ownership Before 5/1/77 Reallocation After 5/1/77 Reallocation The Cleveland Electiic Illuminating Company 24.47 24.47 Duquesne Light Company 13.74 13.74 Ohio Edison Company 35.60 41.88 Pennsylvania Power Company 6.28 0.00 The Toledo Edison Company 19.91 19.91 100.00 100.00 ( l l
l Item 1.e. (s Changes in design, provisions or conditions of rate schedules and reasons for such changes. Rate increases or decreases are not necessary. Ohio Edison Company has changed its retail rates to eliminate many of the former multiple steps. In addition, retail rate classifications of Industrial Primary, Commercial Transmission and Industrial Transmission have been changed to General Service-Medium and Large. (See Rate Schedules marked as Attachment "A" hereto). These changes have been brought about by a more strict adherence to cost-based rate design. A Partial Requirements Rate is now available to wholesale customers, negotiated relative to Docket No. ER77-530 and established in Docket No. ER80-361. This rate provides an opportunity for wholesale customers to schedule and purchase part or all of their power requirements from non-Company sources. (See Partial Requirement Rate Schedule marked as Attachment "B" hereto). This Partial Requirements Rate has followed the retail rates regarding the abbreviation it. the number of steps. In addition, there has been a consolidation of the transmission and primary rates into one uniform rate, done primarily for simplicity. The uniform rate is basically a transmission rate with a surcharge provision for those wholesale customers served at distribution primary voltages. One other change in the wholesale rate has been made - the introduction of a billing demand provision which forgives the off-peak demand, up to 200% of the on-peak demand, in the determination of the billing demand. This off-peak forgiveness provision is similar to that in the retail rates. l
( The partial requirements contract form and partial requirements rate schedules submitted to the FERC in Docket No. ER-80-361 on April 29, 1980, were accepted for filing, made effective April 29, 1980, and designated FERC Electric Tariff, Original Volume No. 1. While there were no municipal customers taking service pursuant to the partial requirements tariff, Ohio Edison was notified in December of 1980 that twenty of its twenty-one municipal wholesale customers desired to become partial requirements customers as of April 1, 1981. The twenty customers have provided partial requirements schedules to Ohio Edison and the Company consnenced providing partial requirements service to these customers as of April 1,1981. Subsequently, in FERC Docket No. ER50-454 and FERC Docket No. ER82-79, Ohio Edison has requested an increase in the partial requirements rate. The rates reflected on Attachment B, pursuant to the most recent FERC Order, were w ( allowed to become effective on' June 9, 1982 but are subject to refund.
I Item 1.f. List of all (1) new wholesale customers, (2) transfers from one rate schedule to another, including copies of schedules not previously furnished, (3) changes in licensee's service area, and (4) licensee's acquisitions or merger.
- 1) The City of Newton Falls, Ohio, has become a wholesale customer of Ohio Edison Company and it now purchases partial requirements from Ohio Edison Company under the schedules described in prior response.
- 2) Twenty of the previously full requirements wholesale customers of Ohio Edison Company have commenced taking partial requirements under the recently approved rate schedule (See prior response).
- 3) There have been no changes in Ohio Edison Company's service area.
- 4) Ohio Edison Company has not participated in any acquisitions or
( merger.
t Item 1.g._ List of those generating capacity additions _ committed for operation after _the ( nuclear facility, including ownership rights or power cutput allocations. There is one generating capacity addition committed for operation after Beaver Valley Unit 2 which will be partially owned by Ohio Edison. This facility is Perry Nuclear Power Plant Unit 2, which will be operated by The Cleveland Electric Illuminating Company, and has a scheduled in-service date of Iby 1, 1988. The expected total generating capacity of this unit is 1205 MW. The ownership allocation of the generating capacity to be installed at Perry Nuclear Power Plant Unit 2 is as follows: Percent The Cleveland Electric Illuminating Company: 31.11 Duquesne Light Company: 13.74 ( Ohio Edison Company: 30.00 Pennsylvania Power Company: 5.24 The Toledo Edison Company: 19.91 100.00 (
i Item 1.h.
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Summary of requests or indications of interest by other electric power wholesale or retail distributors, and licensec's respor.se, for any type of electric service or cooperative venture or study. On December 29, 1978 twenty-one wholesale customers of Ohio Edison Company and the four municipal wholesale customers of The Toledo Edison Company gave notice of a general intent to obtain access to the Davis-Besse I, 2 and 3 and the Perry 1 and 2 nuclear units. By letter dated March 26, 1979, attorneys for these wholesale customers requested a meeting between representatives of the munici-palities and representatives of each of the CAPCO Companies to exchange views and information. Such a meeting was held in Cleveland, Ohio, on June 1, 1979. During the meeting the representatives discussed the then proposed establishment of an Ohio Municipal Electric Authority to be set up ( as a financing tool to be used on behalf on all 83 municipalities which had electrical distribution facilities on January 1, 1979. The establishment of such an authority required an amendment to the Ohio constitution which was eventually defeated by the Ohio voters on June 3, 1980. No further action has been taken by the requesting entities to obtain access to the units (two of which have since been cancelled). (
( f Item 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. There are-no antitrust license conditions attached to BVPS-Unit 2 Construction Permit. Such conditions are attached to David-Besse - Unit No. 1 Perry Nuclear Power Plants Unit No. I and 2. Ohio Edison Company is l I consnitted to and has complied with all applicable license conditions. (See Response i.e. and 1. h. hereto).
Attcchm2nt "A" Ohio I.dison Company Tenth Revised Sheet No, 52 Akrran, Ohio P.U.C.0, No. 10 Concelling Ninth Revised Sheet No. 52
. GENERAL SERvlCE - MEDilM SECOM)ARY VOLTAGES hellebility:
Available as shown on Sheet Nn.1. The ellling demand small not be less then 50 KvA. Both single and three phase service will be metered tnrough one meter and so billed unless cir-cuestances not under the control of the Company make it lepractical or not feasible to do so. Services Alternating current, 60 Hz , at nominal voltages of 120/240 or 120/208 or 277 single phase, or 120/208 or 240 or 277/480 three phase, as available from suitable facilities of adecuate capacity adjacent to the prenises M be Served. Other voltages may be obtained from available distribution facilltles provided the customer owns, operates and maintains all necessary transforming, controlling, regulating and protective eculpment, in unich case service may be metereo at *ne Com:eny's supply vcitage. The Company designs and operates its electrical syste,n to provide service voltages within the limits speci fied in Anerican National Standard voltage Ratings for Electric power Systens and Equi pment (60 Hz) C 84.1-1970. Rete: The not montnly charge por customer shall be: Capacity Oterge First 100 KVA of billing demand, per KVA ....... 110.53 Additional KvA of billing demand, per KvA ....... 5 9.52 Energy Charges k' First 250 KwH per KVA of b!Illng demand, per KWH .. 1.55$ Over 250 kWH per KVA of billing denand, per KWH ... 0.72T Minimum Charger The minimise monthly energe sh911 be the capacity charge. Billing Demend in KVA: The billing donand for the month shall be the greatest of: 1 (1) The highest measured 30-minute KvA demand during the month (2) 605 of the hignost billing denand during the preceding eleven months (3) 50 KVA (4) The contract demand When metering capable of measuring on-pean and off-peak denands is in use, the customse's measured denand shall be the greater of the on-peak demand or 50 percent af the of f-aeak denand. where the customer nas the capability of moving a deferrable denand to an of f-seek period and desires to do so, the Company will provide the metering capability to measure demands occurring during on-peak and off-peak periods. On-peak periods are from 8:00 A.M. to 9:00 P.M. local time Monday through Friday, except for the following legal 9olidays observed during these periods: New Years Day, president's Oey, Memor!41 Day, independence Day, Labor Day, Thanksgiving Day and Christmas Day. All other periods shall be of f-peak. (Continued) Filed under the authority at 0 ene No. 80-Il39-EL-AIR, Issued by The Public Utilities Commission of Chlo Et f ecH ve s % 21. N
;ssued Dy :. T. Rogers P. , president
Attcchm:nt "A" T; nth Revised Shee? %. 52 Onlo Edison Company Canctiling Ninth Revised Sheet No. 52 Akron. @ic .P. tL C. O. ab . 10 f%n t i n umd
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Silling Demand in KVA: (Continued) where it nas been demonstrated that througn load management procedures a customer has shif ted load to the of f-peak period and such shif t of load will cause the 601 billing demand ratchet i provision to be used in billing the account, the customer may be allowed to re-establish his ' maximm demand for billing purposes. L The Company shall not be required to increase the capacity of any service f acilities In order to furnish off-peak demands. The Company reserves the right, upon 30 days notice to cus-tomers af fected, to change the time or times during which on-peak de eends may be established. ! Fuel Adjustinent: The energy energe shall be adjusted in accordance with the Electric Fuel Component Rider shown on Sheet No. 42-1 Tax Adjustiment [ I sills snell be adjasted in accordance with tre interim Chio Gross Recolots Tax Surcharge , Aider shown on Shoot No. 41 l l Adjustiment for Primary Metering: l wnero a transformer Installation (regardless of ownersh i p) Is utilized solely to furnish service to a single customer, +he Company may meter the service on t*e primary side of the transformers, and in such case the demand and energy registrations small each ee reduced 21. Terms of Payment: The not enount billed Is due and payable althin fifteen cays af ter the date of malling of the bill, if tne not enount is not paid on or before the date snown on the bill for payment of not enount, the gross mount unic9 Is 35 more than +he not enount is due and payable. ( Auxillary or Stand-by Service: I wnen auxiliary or stand-by service is furnished, a contract demand shall be established by mutual agreement and shall be specified in the service contract, No .wowc?i:n in centrac? 2ema70 SW4 ?e ar=i?ted 1urina me term o+ *ne coat se . In ! re-contracting for auxiliary or stand-ey service, the new contract demand small not be less than 60% of the highest billing demand during the last eleven months of +he previous contract term. Contract: An application is recuired. Elec*ric service hereunder will be furnished for a minimun period of one year and shall continue thereafter from year to year unless either party shall give to the ,
- nor not less than 60 days notice in writing prior to the expiration date of any yearly period l trat ne service is to be terminated.
- A wr itten contract will oe reduired for auxiliary or stand-by ssrvice or .he6 a contract demand is required. '
enen the service is re-established for the bene f i t of the same customer at the same location witnin a perle $ of less than twelve months from the date when service was discontinued, all of i the conditions during the previous contract period applicable to t$1611r4 9.e i l apply and the billing denand shall not be less than 60$ pf the highest billing demand during the last eleven i months of the previous contract period. I I Rules and Regulations: Tne Company's Standard Rules and Regulations shall apply to the installation and use of electric j service. t h 4 l Kiled ,,;nder the authority of Order No. 80- 1139-E L- A I R , _ Issued by P e public utilitiea Commission of Ohio I issued tv J. T. Rogers, Jr., Dresident Et f ective : May 21, 1982 i
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AttcchrGnt "A" l l Ohio Edison Company Ninth Revised Sheet No. 53 Akron, Ohio P.U.C.0. m. 10 Cancelling Eighth Revised Sheet No. 53 GENERAL SERVICE - LARGE DISTRIBUTION PRIMARY AND TRANSMIS$10M V06TAGES Aveliability: Available as shown on Shoot No. I f r service furnished through one motor for each Installation. Services Alternating current, 60 Hz, three phase, at primary or transmission voltages as avallable from suitable f acilities of adequate capacity adjacent to the premises to be served. The customer will be responsible for all transforming, controlling, regulating and protective oculpment and its operation and maintenance. Rote: The not monthly charge per customer shalI be: Capacity Charges First 4,000 KVA of billing demand, por KVA ......... 19.23 Additional KVA of billing demand, per KvA .......... 15.97 Energy Charge: a. First 250 OH per KVA of billing demand, per O H .... 1.49$ Over 250 KWH per KVA of billing demand, per KwH .... 0.63$ Olscounts The coacity charge and energy charge shall be reduced by: i 3.05 when the customer receives service directly from the 23,000 or 34,500 volt transnission I system or owns 23,000 voit transforming, controlling and protectlee equilpent. 5.05 unen the customer receives service directly from the 69,000 volt transmission systen. 7.55 when the astome" receives service directly from the 138,000 volt transmission systen. Tne oiscounts snail not amoly to tne tue: ujasment. Billing Domend in KVA: The billing demand for the month shall be tne greatest of: (l) The hignost 30-minute on-peak demand during the month (2) o05 of the highest billing demand curing the preceding eleven months (3) 505 of the highest of t-peak demand during the month (4) 100 KVA (5) The contract denand On-neak periods are from 8:00 A.M. to 9:00 P.M. local time %nda) through Fr iday, except for the fcefowing legal holidays observed during these periods: %w Years Day, President's Day, l Memorlai Day, independence Day, Labor Day, Thanksgiving Day and Christmas Oey. All other per iods shall be of f-peek. where it has been canonstrated that through locd management procedures a customer has shif ted load to the of f-peau period rd such shift of load will cause the 605 ellling demand ratchet provision to be used in billing the account, the customer may be allowed to re-establish his , maximun demand for billing purposes. The Company snail not be required to increase the capacity of any service f acilities in order to furnish of f-oeak comands. The Compsny reserves the right, ucon 30 days notice to customers affected, to enange the time or times during whicn on-pean demands may be established. , (Continued) , Filed under the authority of Order No. 80-Il39-EL-AIR, Issued by The Pubt le Utilities Comission of Chlo ! Effective May 21, 1982 Issued by J. T. Rogers, Jr. , President i b
Attcchm:nt "A" Ninth Revised Sheet No, 53 Cancelling Eighth Revised Sheet No. 33 Ohic Edison Crwepany f%ntIaumd Akron. Chfo P 1L f* S. tkL to (Continued) Minleum Cherges The minimiss monthly charge shall be the capacity charge. Fuel Adjustiment: The energy charge shall be adjusted in accordance with the Electric Fuel Component Alder shown on Sheet No. 42-1 Tax Adjustment: Bills shall be Mjusted in accordance with the interim Ohlo Gross Receipts Tex Surcharge Rider shown on Sheet No. 41 Adjustment for Secondary Motoring: The Company reserves the right ?o Install the metering edul pment on either the primary or secondary side of tne customer's transformers, and unen Installed on the secondary side, compon-sating metering eculpment will be used to correct transformer losses for transmission service. Primary service will be corrected by increasing the demand and energy registrations by 21. Terms of Peyinent: The not enount is due and payable within fifteen days af ter the date of malling of the bill. If the not amount is no? paid on or before the date shown on the bill the gross enount, unich is 25 more than the not enount, is due and payable. l Auxillary or Stand-ey Services when auxillary oa sund-by service is furnished, a contract. demand shall be established by mutual agreement and shals be specified in the service contract. No reduction In contract derend shall be permitted durin3 the term of the eSntract. In ro<on-tracting for auxillary or sisN-by serytce, the new contract demand shall noi 0,s less then 605 of the highest billing demand during the last eleven months of the ;revious contract. Interruptible Proylsion: The Company will negotiate providing interruptible service to a customer, upon request by the customer, where it een be demonstrated that there is an Interruptible load of gt legst 1,000 (VA. Contract: Elecric service hereunder will be furnished in accordance with a written contreet which by its term shall be in full force and effect for a minimtsn period ef one yeer and shall continue in force thereaf ter frcyn year to year unless either party shall give to the other not less then 60 days notice in writing prior to the expiretion date of any said yearly periode that the contract shall be terminated at the expiration date of said yearly period. when a contract is terminated - In the manner provided herein, the service will be discontinued. when the service is re-established for the benefit of the same customer at the same location within a period of less than twelve months from the date when service was discontinued, all of the conditions during the previous contract period applicable to billing shall apply and the billing denand shall not be less than 60f of the highest billing demand during the last eleven montns of the previous coatract peric<!, 14J164 and Regulations: electric The Company's Standerd Rules and Reguistions shall goof y to tf.e Installation and use of service. The Company's general policy of supplying regulated voltages does not apply to this rate schedule. l Filed under the authority of Order No. 80-1139-EL-AIR, Issued by The Public Utilities Comission of Chlo Effective: May 21, 1982 issued by J. T. Rogers, Jr. , Presicent
Attcchment "B" rate F_dlann P -- w- Akran- Ohls " * ' " ' ' MUNICIPA4. RESALE SERVICE P/ATIAL REQUIRDIENTS Applicability: Applicable to service at transulssion or distribution primary voltage to Ohlo municipal corpore-tions purchasing part of their electric service from the Company for resale at retall, subject to the terms and condlflons herein. Service purchased hereunder shall be for partial requirements sale for resale including asso-clated electric services required for the operation of the municipality's electric distribution systee. I Services Alternating current, 60 Hz three phase, at nominal transmission or distelbution primary unregu. lated voltages fran suitable facilities of adequate capacity as may be evallable. All transform. Ing, controlling, regulating, and protective equipment shall be owned, operated and maintained by the customer. Monthly Rates: Services rendered hereunde shall be billec et the aggregate monthly charges set forth below: Capacity (Mrges Generation Capacity Billing Charge l Ba se Ch arge per Kw . . . . . . . . . . . . . . . . . . . . . . . . . . 5 8.97 ' Ex cess Charge per KW . . . . . . . . . . . . . . . . . . s . . . . . 510.38 Standby Capacity merge per Kw per week........ 1 0.40 Transmi ssion Capacity merge per Kw ........... 5 2.11 1.oed bispatening and Scheduling merge per KW.. 5 0.07 React i v e Dema nd Ch arg e per KV AR. . . . . . . . . . . . . . . . 1 0.37 { Energy h ge: The first 250 KWH per KW of Generation Capacity billing lood: 4.72( per KWH
, For all over 250 KwH Der Kw of GeneratM Capacity billing foed:
2.554 per KnM Surcharges when the customer receives service from the distributlen primary systen the generation and transelssion capedty billing charges and energy charges shall be increased pelor to applying the fuel and tax njustment by 2.51. Discount The generation snd transmission capacity billing charges and energy chargi, shall be reduced pelo- to applying the fuel and tax adjustments by: 3 5 enen the customer recalves service directly fec,e the 69,000 volt transmission systen. 5.0% unen tne customer receives .ervice directly from the 138,000 volt transmission systen. Minle a Charges The minimun monthly charge shall be the Generation Capeelty and Transmi ssion Capacity merces for the month. (Continued) ( lssted by J. T. Rogers, Jr. , President Etf active hu)J 9,1962 pursuant to Federal Energy Regulatory RES82/006.1 Commission tdor issued July 9,1962 in Docket No. ER82-79
Attachmut "B" w3 a, l Cnlo Edison Comoenv. Akron, mio (Continued) Determinetles of Billing Leeds: Determinetton of Generstion Cepecify Silling Leeds: Beee Generetles capacity Billing Laod in kilowatts for the month shall be the highest 60-minate on-pet.k load on the Company with the following limitstions:
- 1. The Base Cepecity Billing Load shall not be less thant (a) 200 KW; or (b) 855 of Qastomer's estimated 60-minute denand from Company sources as provided for in Customer's current three-year schedule; or (c) 605 of the highest Generation ' Capacity Bi lling Load during the proceding eleven months; or (d) 505 of the highest 60*sinute of f-peak load on the Company during the month.
- 2. The Base Generation Capacity Billing Load shall not be more than 1105 of 02stomer's estimated 60-minute demand from Company sources as provided for in Qastoner's current three-year schedule.
Excess Generation Co,1ecity Billing Laod in kilowatts for the month shall be the dif ference, I f any, obtained by suetracting from the highest 60-eminute on-peak load on the Cbeparty during the month the pro 4uct of Customer's estimated 60-minute donand from Company sources as pro-vided fer in the Customer's current three-year schedule times lio$. Determinetton of Transerission Cepecity Billing Leed: Transmission Capoelty Billing Loed In kilowetts for the month shall be the highest of: 1 200 KW; or
- 2. The highest m:aescred 60-minute load at Customer's delivery point; or
- 3. 605 of the highest Transmission Ce;,ecity Billing Load during the preceding elevon months.
( Deterulaation of Standby Cepecity Billing Leeds Standby Qipacity Billing Load in kilowatts applicable when Intermestate Term Power Is sche-d ul ed , is the difference between the (1) sun of Q4stomer's highest measured 60-minute load on Company and the cuantity of Intermediate Term Powe- received during that Sour by Customer during the billin2 week, and +he (2) se of the &ree Generation Capacity 91 t ling Load and the Excess Generation Capacity Billing tsoad for the scrith. Determinetton of La 4 Dispatching and Scheduling Billing toed: The mon *% > tilling load in KW shall be the maximun non-colncidental 60*ninute scheduled denand Swe. 9 st @ pany source for Customer. Detes,ir an ar ' Conctive SiIilng Load Th y month l y b." ting demand shall be the maximri 60-minute demenc in kilovers furnished during the month less E% of Customer's highest measured 60-mi n ute load in KW on Company for the sone how and is applicable only if Customer's power factor for the month is less than 955. Deterulnation of Billing KNM The Energy 01erge shall be based upon the total KWH metered less scheduled energy receive <1 fron non-Company sources correctM for losses, Deflaition of On-Peek and Off-Peak mursi there proper motoring eculpnent is Installed, toeds established frcr4 9:00 P.M. to S:00 A.M. local time %nday through Felday, and on Saturdays, Sundays, New Year's Day, Presidents' Day, Memorial Day, independence Day, Labor Day, Thanksgiving Day, and 01ristmas Day, shall be designated Of f-Peak loads. When such holidays fall on Saturday, the preceding Friday shall be an of f-Peak day, and when such holldays f all on Sunday, the following 2nday shall also be an of f-Peak day. Losss estaallshed during other periods shall be designated On peak loeds. The Company shall not be required to increase the capacity of any service facilities In order to furnish off-Peak loads. The Company reserves the right, upon 30 days' notice to OJstomers (. affected, to change the time or times during which Off-peak loeds may be established. (Continued) issued ey J. T. %gers, Jr., President Ef fective Jun 9,1982 pursuant to Federal Energy Regulatory RES82/007.1 Comreission Order issued July 9,1962 in Docket No. ER82-79
Attachment "B" 3,, a,_ %_ u_ yr- Mi..; (Continued) Fuel Mjustment: The charge for each 10fH of sales shall be Increased or decreased by an amount (to the nearest 0.00014) equal to (a) The dif ference between the total fuel :osto per uH of not energy for load during the month luodlately preceding the billing month and a base cost of 1.87644 per 10fH, (b) The difference multiplied by 1.047 to edjust for losses, and (c) The product further adjusted for the Ohio gross receipts tax by d iv id ing by a f actor equal to one (1.00) minus the tax rate percentage expressed as a decimal.
'The total fuel cost shall consist of:
(1) Allowable cost of fossil and nuclear fuel consm ed in the Cbmpany's own plants and the Cbmpany's share of fossil and nuclear fuel consmed in jointly owned or leased plants, plus (2) The actual Identifiable fossil and nuclear fuel costs associated with energy purchased for reasons other than Identlflod in (3) below, plus (3) The not energy cost of energy purchases, exclusive of capacity or denand charges (Irrespective of the designation assigned to such transaction) when such energy is purchased on an economic dispatch basis, less (4) The cost of fossil and nuclear fuel recovered through Inter-system sales including fuel costs related to economy energy sales and other energy sold on an economic dispatch basis. Tex Mjustment: Bills shall be adjusted to of fset the Imposition of or renovel of any new or increased tax lovled by any taxing authority upon the Company's generation, distribution or sale of electric energy after January 8, 1982. Terme of Peyment: A bill for electric service furnished under this schedule during the preceding meter reading period will be presented by the 03mpany on or about the first day of each month. Bills shall cover a period of approximately 30 days. The not amount is due and payable within a period of ( ten days af ter presentation. If the not amount is not peld on or before the date shown on the ( bill the gross amount, which is 25 more than the not amount, is due and payable. Meter 1ng: The Company will furnish and maintain one meter or one unified set of meters for each delivery point. Matering shall normally be at the supply voltage, but the Company reserves the right to install the metering equipment on either the primary or the secondary side of the munlcloality's transformers and to use compensating metering equipment to correct for transformer losses when the metering is on the secondary side. Service supplied through each meter shall be billed separately and shall not be combined for billing purposes. The municipality shall provide, at no cost to the Company and close to the point of delivery, sul+9ble space for the installation of meters and metering equipment. The municipality shall permit the Company's representatives to have access to such equipment at all reasonable hours and ^ for any reasonable purpose, and shall not permit any unauthorl2ed person to have access thereto. On request of the municipality, the Company will at any time make a test of any meter, in addition to the Company's testing under its normal schedule of testing meters in accordance with good electric utility practice. A meter registering within 25 slow or f ast shall be consider ed accurate. The municipality shall relmburse the Company for the cost of testleg on the municipal-Ityss request any meter found to be accurate. Should a meter be found to be Inoccurate, the meter reading for the meter reading period in which the test is made and the billing for the pre-coding meter reading period shall be adjusted accordingly. (Continued) Issued by J. T. Ibgers, Jr., President Ef f ective June 9,1982 pursuant to Federal Energy Regulatory RES82/008.1 Comission Order issued July 9,1982 in Docket No. ER82-79
Attachment "B" GM A d A (hlo Edisan % =nv. Akren . Ch l s (Continued) N Ra Company will endeavor, but does not guarantee, to furnish a continuous supply of electric energy and to maintain voltage and frequency. The municipellty shall Idemnify and save harmless the Company, its successors and assigns from and against any and all claims, demands, damages, actions or causes of action, together with any lossas, costs or expenses in connection thorowlth or related thereto, asserted by any person or persons for personal Injury, death or property dmage arising, growing out of or resulting in any manner from said electric service or any apparatus or equipnent used in connection therewith on the municipality's side from the point of delivery. The Company shall Indentfy and save harmless the municipality, its successors and assigns, from and against any and all claims, deands, dmages, actions or causes of action, together with any losses, costs or expenses in connection therewith or related thereto, asserted by any person or persons for personal Injury, death or property dmage arising, growing out of or resulting in any manner from said electric service or any apparatus or equipment used In connection therewith on the Company's side from the Nint of delivery. The municipeilty shall not use, and shall not permit its customers to use, the service in such a manner as to impose en unreasonable unbalance between phases, or to disturb or impair the operation of the Compeny's system, or to Interfere with service to the Companyes customers. Contracts Service hereender will be furnished in accordance with a written contract. ( i Issued by J. T. Rogers, Jr. , President Et fective June 9,1982 pursuant to Federal Energy Regulatory RE582/009.1 Commission Order issued July 9,1962 in Docket No. ER82-79
Attachm:nt "B" (hlo Edison (bmoany. AkU.r.. Ohio **** ' "' ' CITY 0F CSERLIN ltATE SCHEDULE Appilombility: Applicable to service to the City of Oberlin at transmission voltage subject to the terms and conditions herein. Services Alternating current, 60 Hz, three phase, at nominal transelssion voltage. All transforming, controlling, regulating, and protective equipment shall be owned, operated and maintained by the City of Oberlin. Itete: The not monthly charge shall bet Capacity Charge: 81 1 1 I ng l oad , per KW . . . . . . . . . . . . . . . . . . $11.08 Reactive Demand Charge per KVAR ....... 0.37 Energy Oterges The first 250 KWH per 2 of billing lood: 4.72( per KWH For all over 250 KWH per KW of billing load 2.554 per KWH Discount The caper:lty charge and energy charge shall be reduced pelor to applying the fuel and tax adjustments by 3.55 since the City receives service directly from the 69,000 volt trans-alssion system. Mlateam Oterges The minim a monthly charge shall be the cepecity charge. Determinetton of BIi1 lag tmed: The billing lood for the month shall be the highest 60-minute on-peak load during the month, except that in no event shall the billing load be less than 2000 kW: nor less than 505 of the highest of f-peak load during the month; nor less then 605 of the highest billing toed during the preceding eleven months. The term aloed" is defined as the average rate of use of electric energy measured in kilowetts (KW) during any 60-elnute period. Loads established from 9:00 P.M. to 8:00 A.M. local time %nday through. Feldey, and on Saturdays, Sundays, New Year's Day, Presidents Ony, Memorial Day, independence Day, Labor Day, Thanksgiving Day and Osel stmas Day, shall be designated off-peak loeds. men such holldey f alls on Saturday, the preceding Fr iday shall be an of f-peak day, and when such hollday falls on Sunday, the following % nday shall also be en off-peak day. 14ed s established during other periods shall be designated on-peak toeds. The (bapeny shall not be required to increase the capacity of its service facilltles in order to furnish off-peak l oed s. The Company reserves the right, upon 30 days notice to the City, to change the time or times during which of f-peak loeds may be established. Determinetton of Insective Billing Laod: The monthly billing demand shell be the maximm 60-minute demand in kilovers furnished during the month less 335 of the City's highest measured 60-minute load in KW for the same hour and is applicable only if the City's power f actor for the month is less than 955. (Continued) Issued by J. T. bgers, Jr. , President Etf active June 9,1962 pursuant to Federal Energy Regulatory RES82/003.1 Commission Order issued July 9,1962 In Docket %. ER82-79
Attechm3nt "B" Ohio Edison N-aeny, Akron, Ohio Sheet 2 of 3 (Con *lr.ved) Fuel Mjustements , he char 0.00014)ge equal for to: each KWH of sales shall be increased or decreased by an amount (to the nearest (a) The dif ference between the total fuel cost
- per KWH of not energy for load during the month Inunediately preceding the billing month and a base cost of 1.87644 per KWH, (b) The dif ference multiplied by 1.047 to adjust for losses, and (c) The product further adjusted for the Ohlo gross receipts tax by dividing by a f actor equal to one (1.00) minus the tax rate percentage expressed as a decimal.
'The total fuel cost shall consist of:
(1) Allowable cost of fossil and nuclear f uel consumed in the Company's own plants and the Company's share of fossil and nuclear fuel consumed in jointly owned or leased plants, plus (2) The actual Identi f iable fossil and nuclear fuel costs associated with energy purchased for reasons other than Identitled in (3) below, plus (3) The not energy cost of energy purchases, exclusive of capacity or demand charges (Irrespective of the designation assigned to such transaction) when such energy Is purchased on an economic dispatch basis, less (4) The cost of fossil and nuclear fuel recovered through Inter-systen sales including fuel costs related to economy energy sales and other energy sold on an economic dispatch bests. Tax Mjustement: Bills shall be adjusted to of fset the Imposition of or removal of any new or increased tax lovled by any taxing authority upon the Company 8s generation, distribution or sale of electric energy after January 8, 1982. Tories of Peyment: A bill for electric service furnished under this schedule during the proceding meter reading perlod elII be presented by the Company on or about the fIrst day of each month. BIlls shalI cover a period of approximately 30 days. The not amount is due and payable within a period of (' ten days af ter presentation. If the not enount is not pald on or before the date shown on the bill the gross amount, which is 25 more than the not enount, is due and payable. Metering The Company will furnish and maintain one Wer or one anified set of meters for each delivery point. Matering shall normally be at the supply voltage, but the Company reserves the right to Install the metering equipment on either the primary or the secondary side of the City's trans-formers and to use conpensating metering equipment to correct for transformer losses when the metering is on the secondary side. Service supplied through each meter shall be billed separate-ly and shall not be combined for billing purposes. The City shall provide, at no cost to the Company and close to the point of delivery, suitable space for the installation of meters and motoring equipment. The City shall permit the Cbmpany's representatives to have access to such equipment at all reasonable hours and for any reasonable purpose, and snell not permit any unauthorized person to have access thereto. On request of the City, the Company will at any time make a test of any meter In addition to the Company's testing under its normal schedule of testing meters in accordance with good electric utility practice. A meter registering within 25 slow or fast shall be considered accurate. The City shnll releburse the Company for the cost of testing on the City's request any meter found to be accurate. Should a meter be found to be inaccurate, the meter reading for the meter reading period in which the test is made and the billing for the preceding meter reading period shall be adjusted eccordingly. (Continued) ( lssued by J. T. Rogers, Jr. , President Etfective June 9,1982 pursuant to Federal Energy Regulatory RES82/004.1 Commission Order issued July 9,1982 in Docket No. ER82-79
Attechm:nt "B" thia Edinan r-- - -- . . L. a . Oh t a ha+ tM t l (Qantinued) ( ,, The Chapany will endeevor, but does not guarantee, to furnish a continuous supply of electric l energy and to meintain voltage and frequency. . The City shall Idemnify and save harmless the Qznpany, Its succosors and assigns frca and against any and all claims, demands, damages, actions or causes of aw?!&2 t.gether with any losses, costs or ecpenses in connection therewith or related thereto, asserted by any person er persons for personal injury, doeth or property damage erlsing, growing out of or resulting in any manner from said electric service or any apparatus or equipment used in connection therewith on the City's side from the point of delivery. The Cbmpany shall Indemnify and save harmless the City, its successors and assigns, from and against any and all claims, demands, damages, actions or causes of action, together with any l losses, costs or expenses in connection therewith or related thereto, asserted by any person or persons for personal injury, death or property damage arisino, growing out of or resulting in any menner from said electric service or any apparatus r# equipment used in connection therewith on the Company's side from the point of delivery. The City shall not use, and shall not permit its customers to use, the service in such a manner as to impose an unreasonable unbelance between phases, or to disturb or Impair the operation of the Cbmpany's system, or to Interfere with service to ths Qampany's customers. Osntract: Service hereunder w11I be furnished in accordance vith a uritten contract. l ( lasued by J. T. Rogers, Jr., President Etfactive June 9,1982 pursuant to Federal Energy Regulatory RE542/005.1 Ozumission Order issued July 9,1982 In Docket 143 ER82-79
g . L Application for an Operating License for
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Beaver Valley Unit No. 2 ANSWERS OF THE CLEVELAND ELECTRIC ILLUMINATING COMPANY TO THE INFORMATION REQUESTED BY THE ATTORNEY GENERAL FOR ANTITRUST REVIEW AIEIDAVII i STATE OF OHIO )
) SS:
COUNTY OF CUYAHOGA ) On NN, J d i /fd'JI-- , before me, a Notary Public in and for the State and County aforesaid, personally appeared Mr. D. R. Davidson,- who, after being duly sworn according to law, deposed and said that he is Vice President - System Engineering and Construction of THE CLEVELAND ELECTRIC ILLUMINATING [ COMPANY, a corporation; that in such capacity he is authorized to make this Affidavit; and that the within Answers of THE CLEVELAND ELECTRIC ILLUMINATING COMPANY to the Information Requested by the Attorney General for Antitrust Review are true and correct to the best of his knowledge, information and belief.
/ / 821
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D. R. Davidson Vice President - System Engineering and Construction Sworn to and subscribed before me the day and year aforesaid. W [ Notary Public (/ WILLIA?.1 J. KIRNER, A!!orney NOTARY PUBUC . STATE of oH:o Wy commission has no expiraten data. Secten 147.03 R.C.
Response of The Cleveland Electric Illuminating Company to Regulatory Guide 9.3 B. INFORMATION NEEDED BY THE NRC REGULATORY STAFF IN CONNECTION WITH ITS ANTI-TRUST REVIEW OF OPERATING LICENSE APPLICATIONS FOR NUCLEAR POWER PLANTS
- 1. To assist the regulatory staff in its review, an Applicant for a license to operate a commercial nuclear power plant should consider the following items and any related changes that have occurred or are planned to occur since submission of the construction permit application:
- a. Anticipated excess or shortage in generating capacity resources not expected at the construction 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.
[ Prior to 1972, when application was made for the Beaver Valley Unit No. 2 construction permit, electric sales and peak demand had been rising steadily. In mid-1973, however, this situation began to change significantly. The Arab Oil Embargo, unexpected energy con-servation and a period of economic uncertainty, which still continues, have resulted in lower growth in electric consumption than anticipated in the early and mid-seventies. In the period starting in 1974, there have been several reviews and revisions of the CAPC0 construction schedule. The most recent revi-sion, in January 1980, included the termination of plans to build ( four nuclear units and extension of the schedule of three nuclear
t plants under construction to more nearly conform to the current outlook on load growth. In anticipation of the generating capacity requirements during the 1984 to 1990 period, The Cleveland Electric Illuminating Company has agreed to increase its ownership share in Perry Units 1 and 2 from 295 W to 375 W and to sell capacity and energy to Ohio Edison from Perry 1 in the amount equivalent to its increased ownership for a period of eighteen months starting with the date of commercial operation of Perry 1. In September 1980, the applicant companies terminated the CAPCO Memorandum of Understanding and certain other agreements, and agreed to implement pool restructuring principles which would include independent planning of future generating capacity. The Cleveland Electric Illuminating Company's generating capability, peak load and margin forecasts are summarized in Tables 1 through 3. Table 1 presents current (1982) estimates for the summer and winter periods for the years 1982-1988. The estimates anticipate the completion of Beaver Valley Unit No. 2 in 1986. Table 2 presents corresponding construction stage (1972) forecasts for the years 1972-1980. -In these projections, Beaver Valley Unit No. 2 was scheduled to be in service in 1978. Table 3 is a comparison between the current forecast and that made at the construction stage. The forecast capability, load and margin is shown for the years in which the unit was scheduled to commence operation. Both the 1982
load and capability projections are lower than the corresponding (- 1972 estimates. However, because the load forecasts have declined more than capabilities, an increase in the margin resulted. (
l TABLE 1 ( THE CLEVELAND ELECTRIC ILLUMINATING COMPANY 1982 PROJECTIONS LOADS, CAPABILITIES & MARGINS FOR THE YEARS 1982-1988 Summer 1982 1983 1984 1985 NDC 4716 4716 5011 5049 Seasonal Derating 92 92 98 98 NSC 4624 4624 4913 4951 Projected Peak Load 3390 3480 3560 3660 Margin (MW) 1234 1144 1353 1291 1986 1987 1988 NDC 5333 5281 5656 i Seasonal Derating 103 103 107 NSC 5230 5178 5549 Projected Peak Load 3740 3830 3910 Margin (MW) 1490 1348 1639 Winter 1982 1983 1984 1985 NDC 4716 4716 5049 5129 Seasonal Derating 0 0 0 0 NSC 4716 4716 5049 5129 Projected Peak Load 2090 3160 3250 3320 Margin (MW) 1721 1551 1799 1809 1986 1987 1988 NDC 5281 5281 5656 Seasonal Derating 0 0 0 NSC 5281 5281 5656 Projected Peak Load 3400 3470 3560 Margin (MW) 1881 1811 2096 (
TABLE 2 THE CLEVELAND ELECTRIC ILLUMINATING COMPANY 1972 PROJECTIONS LOADS, CAPABILITIES & MARGINS FOR THE YEARS 1972-1980 Summer 1972 1973 1974 1975 1976 NDC 3647 3719 3727 4292 4550 Seasonal Derating 61 74 73 80 85 NSC 3586 3645 3654 4212 4465 Projected Peak Load 2880 3090 3280 3470 3670 Margin (MW) 706 555 374 742 795 1977 1978 1979 1980 NDC 4550 4821 5140 5467 Seasonal Derating 85 93 93 93 NSC 4465 4728 5047 5374 Projected Peak Load 3890 4120 4360 4620 Margin (MW) 575 608 687 754 (. Winter 1972 1973 1974 1975 1976 NDC 3647 3727 4152 4292 4550 Seasonal Derating 0 0 0 0 0 NSC 3647 3727 4152 4292 4550 Projected Peak Load 2700 2890 3050 3220 3410 Margin (MW) 947 837 1102 1072 1140 1,9,77 1978 1979 1980 NDC 4550 4821 5148 5467 Seasonal Derating 0 0 0 0 NSC 4550 4821 5148 5467 Projected Peak Load 3600 3800 4020 4250 Margin (MW) 950 1021 1128 1217 ( l 1
l l THE 3 l( THE CLEVELAND ELECTRIC ILLUMINATING COMPANY DATA COMPARISON BEAVER VALLEY UNIT NO. 2 COMPLETION DATES l Beaver Valley Unit No. 2 Original Completion Forecast of 1978 Current Completion Forecast of 1986 Summer 1978 1986 Change Total Capability 4728 5230 +502 Projected Peak Load 4120 3740 -380 Margin 608 1490 +882 { Winter 1978 1986 Change Total Capability 4821 5281 +460 ) Projected Peak Load 3800 3400 -400 l Margin 1021 1881 +860 f 1
- b. New power pools or coordinating groups or changes in structure, activities, policies, practices or membership of power pools or coordinating groups in which the licensee was, is or will be a participant.
The applicant companies continue to be the only members of the Central Area Power Coordination Group (CAPCO), and have changed or have agreed to change their activities, policies and practices as follows:
- 1) As of December 31, 1979, the applicant companies ceased mandatory purchases and sales required to be made between and among the CAPCO companies under prior agreements. (See Attachment A " Agreement for the Elimination of Purchases and Sales Between and Among The Cleveland Electric Illuminating Company, Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company and The Toledo Edison Company.")
- 2) The applicant companies amended the CAPCO Basic Operating Agreement dated as of January 1, 1975 in a number of respects as of September 1, 1980, August 1, 1981, and September 1, 1982.
The amended agreement continues coordinated maintenance responsibilities among the parties, but discontinues un-qualified replacement capacity and replacement energy entitlements and obligations between the parties in favor of a limited and qualified mutual back-up system composed
l of CAPCO Back-Up Power and Emergency Power. CAPCO Back-Up Power consists of CAPCO Unit Back-Up Power which provides for back-up entitlements and obligations upon the loss of a CAPCO Unit designated in the amended agreement. Emergency Power provides for back-up entitlements and obligations upon the outage or outages of other units or transmission facilities ) of the parties. The amended agreement is to continue in effect until such time as all CAPCO Units are retired. Any party may withdraw from the amended agreement by giving one year's advance notice in writing, provided that such withdrawal shall not discontinue coordinated maintencace of CAPCO Units, CAPCO Unit Back-Up Power and CAPCO Coordinating Office obligations ( until such time as all CAPCO Units are retired. (See Attachment B - September 18, 1980 letter to the Federal Energy Regulatory Commission (FERC) for details of the changes between the Agreement and the amended agreement. See Attachment C - conformed copy of the "CAPC0 Basic Operating Agreement as amended September 1, 1980." See Attachment D - July 31, 1981 letter to FERC transmitting Amendment No. I to the amended agreement. See Attachment E - September 1, 1982 letter to FERC transmitting Amendment No. 2 to the amended agreement.)
- 3) As of September 1, 1980, the applicant companies terminated the CAPCO Memorandum of Understanding dated September 14,
1967 and certain other agreements, and agreed to implement pool restructuring principles to provide for independent planning, coordination of the maintenance of generating units, continuation of split-savings economy transactions, back-up arrangements for CAPCO Units, a review of the CAPCO transmission allocation procedures and the continuation of the CAPCO Coordinating Office which functions to coordinate operations. (See Attachment F " Agreement for the Termination or Construc-tion of Certain Agreements by and among The Cleveland Electric Illuminating Company, Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company and The Toledo Edison Company.") (
- c. Changes in transmission with respect to 1) the nuclear plant,
- 2) interconnections, or 3) connections to wholesale customers.
- 1) The current 345 kV transmission plan for the Beaver Valley Plant (DL) with Beaver Valley Unit 2 in service calls for con-necting the Beaver Valley Plant (DL) to the following stations:
- Sammis Substation (OE)
- Collier Substation (DL)
- Crescent Substation (DL)
- Mansfield Plant (OE) (2 circuits)
- Hanna Substation (OE)
l l I -
- 2) The following changes have been made or are planned for inter-(~ connections with The Cleveland Electric Illuminating Company System:
a) A 138 kV interconnection to the Painesville Muny System was put in service in 1976. b) Two 138 kV interconnections with the Cleveland Muny System were put in service in 1975 and 1982, respectively. c) A 345 kV interconnection with the Ohio Edison System, from Avon Plant (CEI) to Beaver Substation (OE), was put in service in 1981. ( d) A 345 kV interconnection with the Ohio Edison System, formerly planned from Juniper Substation (CEI) to the Mansfield Plant (OE) but currently planned from Harding Substation (CEI) to the Mansfield Plant (OE), is scheduled to be put in service in 1985. e) A 345 kV interconnection with the Ohio Edison System, from Perry Plant (CEI) to Hanna Substation (OE), is scheduled to be put in service in 1987 or 1988.
- 3) No changes in wholesale customer's connections occurred between 1972 and 1982 except as noted in C(2)(a) and (b) above.
(
i
- d. Changes in the ownership or contractual allocation of the output
( of the nuclear facility. Reasons and basis for such changes should be included. On June 28, 1977, Pennsylvania Power Company sold to its parent Ohio Edison Company its unlivided 6.28% ownership interest in the a facility, so that the resulting respective undivided ownership interests became as follows: Duquesne Light Company 13.74% Ohio Edison Company 41.88% The Cleveland Electric Illuminating Company 24.47% The Toledo Edison Company 19.91% ( l
- e. Changes in design, provisions, or conditions of rate schedules and reasons for such changes. Rate increases or decreases are ,
1 not necessary. Since the completion of the antitrust review at the time of the construction permit application, Applicant has not effected any such changes. However, in the Applicant's next FERC Wholesale Rate Increase filing which will be filed late in 1982, the Applicant is proposing changes in conditions for Emergency Service, eliminating the use of the term " Contract Demand," redefining the terms " Firm Kilowatt Billing Demand" and " Maximum Billing Demand," and providing for an effective ratchet clause provision. (
i These changes are proposed in order to discourage the taking of Emergency Service from the Company during times when sufficient amounts of Firm Power have not been scheduled. These changes will also enable the Company to have an effective ratchet clause provision in the Firm Power Service Agreement. Presently, the City of Cleveland MELP is a partial requirements customer of the Company. However, the Company is forced to standby the City of Cleveland MELP with Firm Power in case l MELP's other sources of supply becorne unavailable. The ratchet clause provision the Company is proposing would compensate the Company for the standby service it is providing. The changes will also simplify and streamline the administrative responsibilities associated with the City of Cleveland intercon-nection billing agreement. The City has recently had cause to make frequent changes to the " Contract Demand" level of the Firm Power Service Agreement. Therefore, the present Firm Power Service. Agreement's language requiring written notice of " Contract Demand" changes has become, we believe, more administratively burdensome for both the Company and the City than it was intended to be.
- f. List all 1).new wholesale customers, 2) transfers from one rate schedule to another, including copies of schedules not previously furnished, 3) changes in licensee's service area, and 4) licensee's acquisition or merger.
(
- 1) Applicant has no new wholesale customers.
- 2) Transfers from one rate schedule to another, including ccpies of schedules not previously furnished:
Applicant wheels power to the City of Cleveland from the Power Authority of the State of New York and Buckeye Power under a transmission tariff designated FERC Electric Tariff, Original Volume No. 1. (See Attachment G " Transmission Service Tariff.")
- 3) Changes in licensee's service area:
As a result of the Opinion and Order in Public Utilities [ Commission of Ohio Case No. 81-732-EL-UNC, The Cleveland Electric Illuminating Company has established a certified service territory which is in compliance with Ohio Revised Code Section 4933.82.
- 4) Licensee's acquisitions or mergers:
Applicant has not participated in any acquisition or merger.
- g. List of those capacity additions committed for operation after the nuclear facility, including ownership rights or power output allocations.
(
.. Perry Nuclear Power Plant, Unit No. 2, is committed for commercial operation in 1988. Ownership rights and power output allocation will be as follows:
The Cleveland Electric Illuminating Company 31.11% Duquesne Light Company 13.74% Ohio Edison Company 30.00% Pennsylvania Power Company 5.24% The Toledo Edison Company 19.91%
- h. Summary of requests or indications of interest by other electric power wholesale or retail distributors, and licensee's response, for any type of electric service or cooperative venture or study.
(
- 1) By letter dated December 29, 1978 to che chief executives of the applicant companies, attorneys Robert A. Jablon and David R. Strauss gave notice of a general intent of the twenty-one municipal wholesale customers of Ohio Edison (WCOE) and the four municipal wholesale customers of Toledo Edison (Ohio Munis) to obtain access to the Davis-Besse 1, 2 and 3 and the Perry 1 and 2 nuclear units.
l By letter dated March 26, 1979, attorneys Jablon and Strauss , 1 requested a meeting between representatives of the municipalities and representatives of each of the CAPC0 companies to exchange
views and information. Such a meeting was held in Cleveland, (- Ohio, on June 1, 1979 with representatives attending on behalf of WCOE, AMP-Ohio, Ohio Edison, Toledo Edison and The Cleveland Electric Illuminating Company. During the meeting, the WCOE and AMP-Ohio representatives discussed the then proposed establishment of an Ohio Municipal Electric Authority to be set up as a financing tool to be used on behalf of all 83 municipalities which had electrical generating facilities on January 1,1979. The establishment of such an authority required an amendment to the Ohio constitution which was eventually defeated by the Ohio voters on June 3, 1980. Aside from subsequently forwarding for information and review copies of various contracts between publicly and privately owned utilities, no further action has been taken by the 4 requesting parties to obtain access to the units (two of which have since been cancelled).
- 2) As the result of indications of interest initiated by the General Public Utilities Companies of the PJM Group for the transmission of bulk power from Ontario Hydro of Ontario, Canada, from St. Joe Resources of Monaca, Pennsylvania, and ,
l from the Detroit Edison Company of Detroit, Michigan, the applicant companies entered into agreements for the purchase and sale of such power effective as of August 1, 1981, Janua ry 25, 1982 and June 1, 1982. (See Attachment H for copies of the Agreements for Purchase and Sale.)
l 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. It is the policy of Applicant to comply with all license conditious. Applicant's construction permit for Beaver Valley Unit No. 2 does not include conditions pertaining to antitrust aspects; Applicant's construction permits for Davis-Besse Unit No. I and Perry Nuclear Power Plant, Units 1 and 2, do include such conditions. ( f k
- 1. On April 17, 1975, Applicant entered into an agreement for installa-( tion and operation of a 138 kV synchro:tuus interconnection with the City of Cleveland. An amendment to said contract provides for the installation and operation of a second interconnection. Both inter-connections have been installed.
- 2. Applicant has filed "FERC Electric Tariff Original Volume No. 1 of The Cleveland Electric Illuminating Company" with the Federal Energy Commission. The tariff accords with License Condition 3, and service under the tariff has been made available to the City of Cleveland. Applicant has actually wheeled power to Cleveland from PASNY (for AMP-Ohio) and Buckeye.
- 3. As noted in Applicant's response to Item 1, Applicant met with representatives of the Wholesale Customers of Ohio Edison and the Ohio Municipal Customers of Toledo Edison on June 1, 1979 pursuant to the nuclear unit commitment provision of License Condition 9.b, but no binding commitments have been made. In the meantime, the Davis-Besse 2 and 3 Units have been cancelled.
l l l AGREEMENT FOR THE ELIMINATION OF PURCHASES AND SALES BETWEEN AND AMONG THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, DUQUESNE LIGHT COMPANY, OHIO EDISON COMPANY, { PENNSYLVANIA POWER COMPANY AND THE TOLEDO EDISON COMPANY i l I i ( Attachment A l U. ,
AGREEMENT TOR THE ELIMINATION OF PURCHASES AND SALES l BETWEEN AND AMONG THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, (~ DUQUESNE LIGHT COMPANY, OHIO EDISON COMPANY, PENNSYLVANIA POWER COMPANY AND THE TOLEDO EDISON COMPANY THIS AGREEMENT, effective as of the 31st day of December, 1979, between and among The Cleveland Electric Illuminating Company ("CEI"), an Ohio corporation, Duquesne Light Company ("DL"), a Pennsylvania corporation, Ohio' Edison Company, an Ohio corporation, and its wholly-owned subsidiary, Pennsylvania Powcr Company, a Pennsylvania corporation, which two companies arc considered as a single party for purposes of this Agreement and referred to as "CE", and The Toledo Edison Company ("TE"), an Ohio corporation. WITNESSETH: , WHEREAS, CEI, DL, OE and TE, are each mcmbers of the CAPCO Group, and have previously agreed to the installation of a number of large-scale generating' units in which the ! members have agreed upon ownership interests, and to the assignment of individual capacity responsibilitics to be discharged through ownership interests in and purchase and sale arrangements with respect to such units, and WHEREAS, each of the members of the CAPCO Group is desirous of climinating all such purchases and sales effective as of January 1, 1980. NOM THEREFORE, it is agreed as follows: Notwithstanding anything to the contrary in the Agreement of Chief Executives dated July 6, 1973, and the Memorandum of Agreement with an effective date of March 1, 1977, and captioned " Purchase and Sale Agreements Under Schedules E and H of the CAPCO Dasic Operating Agreement for the period March 1, 1977 through December 31, 1977 and for 1978, and Tentativo Purchase and Sale Agreements for 1979 and Beyond", purchases and sales required by such agreements betucon and among members of the CAPCO Group shall cease at midnight December 31, 1979. The parties to this Agreement expressly waive applicability of paragraph 11 of the Agreement of Chief Executivos dated July 6, 1973, relating to the application of Monthly Reserve Obligations during the period this Agreement is in effect. l
In Witness Wher of, the parties have caused this Agrcement to be-exscuted. THE CLE.V LAND ELECTRIC ILLUMINATING COMPANY By: t Ch j,s v
Title:
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Date: hw fi v;A; i 'DUQUESNE LIGHT COMPANY By: / ,b7$kl V 1
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Title :[/,J:r ~. a c5-lb r00...J dl~l. / Ev . .n.
- Date: 0m _
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OHIO EDISON COMPANY By: /
Title:
//ag # Date: 'Q _ / ar into PENNSYLVANIA POWER COMPANY By: , 6 h
Title:
h: ./ h 1 // + M ' l Date: / Jg, e Sra THE TOLEDO EDISON COMPANY Titic:
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- Date: i% si, / vfn v
1
SEPTEMBER 18, 1980 LETTER TO THE FEDERAL ENERGY REGULATORY COMMISSION TRANSMITTING THE CAPC0 BASIC OPERATING AGREEMENT AS ( AMENDEb SEPTEMBER 1, 19dC Attachment B
THE CLEVELAND ELECTRIC ILL'JM'N ATING COMPANY p o Box sooo e cLEvELANo. osio 41o1 e TELEPMoNE (216) 822-900o e ILLUMINATING SLtG e 65 PUBLIC soVARE ( Serving Tne Best Location m the '.'s: ton September 18, 1980 Tederal Energy Regulatory Come.ission 825 Capital Street, N.E. Washington, D.C. 20426 Attention Kenneth F. Plumb, Secretary Gentlecen: On behalf of each of the following listed Companies, we hereby transmit for filing under Section 205 of the Federal Power Act twelve (12) copies of the CAPC0 Basic Operating Agreement as amended September 1, 1980 (the " revised Agreement") to replace without interruptica the CAPCO Basic Operating Agree-ment dated as of January 1,1975, as amended (the " Agreement"), which is on file with the Commission and which is identified by the rate schedule numbers shown for each listed Company. Company FERC Rate Schedule Numb r ( The Cleveland Electric illu=inating Company 13 Daquesne Light Company . 14 Ohio Edison Company 120 Fennsylvania Power Company 29 The Toledo Edison Company 26 Please return one (1) time-stamped copy of the filing documents to each of the undersigned. The documents accompanying this letter include:
- 1. The CAPCO Basic Operating Agreement as amended September 1, 1980.
- 2. Cost support data for each of the Cocpanies for the rates specified in the revised Agreement. ,
- 3. Three (3) copies of a form of Notice suitable for publication in the Federal Register, in accordance with Section 33.8 of the Commission's Regulations.
4 A check covering the required filing fee.
'he signed copies of the revised Agreement evidence the agreement of the Parties, and all of the Parties to the CAPCO Baszc Operating Agreement have approved this filing.
(
Federal Energy Regulatory Commission Page 2 Facilities over which services will be provided under the revised Agreement i have been provided for pursuant to the provisions of the CAPCO Transmission Facilities Agreement among the Parties, dated as of September 14, 1967, which is on file with the Commission and is identified by the rate schedule numbers !. shown for each listed Company. Company FERC Rate Schedule Number i The Cleveland Electric Illuminating Company 8B . Duquesne Light Company 128 Ohio Edison Company 96B Pennsylvania Power Company 22B The Toledo Edison Company 21B The Parties to the CAPC0 Basic Operating Agreement respectfully request that the Commission waive any requirements not already complied with under the Con-mission's Regulations and permit the revised Agreement to become effective as of September 1, 1980. i l A check in the amount of $500 is enclosed to cover the filing fee of $100 for i each of the Parties pursuant to Section 36 of the Commission's Regulations. { The revised Agreement amends the CAPCO Basic Operating Agreement dated as of
- ( January 1, 1975 by addition, substitution and deletion in the following re-spects without in any way changing or modifying the Appendices to Schedule E of the Agreement.
Article 1, entitled Purpose of Agreement, is amended chiefly by deletion of reference to the CAPC0 Basic Generating Capacity Agreement which was to be formulated among the Parties and which the Parties have decided not to for-mulate, and by deletion of reference to the CAPCO Basic Transmission Facilities Agreement. Article 2, entitled Definitions, is amended by deletion of the definitions for CAPCO Capacity, CAPC0 Operating Reserve, CAPCO Operating Reserve Requirement, ] Consmitted Capacity, Common Facilities, Daily Operating Capacity, Daily Operat-d ing Capacity Requirement, Daily Operating Reserve Requirement, Monthly Actual Reserve, Planned Outage, Replacement Capacity and Replacement Energy, and by the addition of the definitions for Operating Capacity and Power. Article 3, entitled Operating Committee, is amended by revising Subsections 3.05 (d), (e) and (f) to direct the CAPCO Operating Conunittee to establish rules and procedures for determining minimum Operating Reserve for each Party and for scheduling CAPC0 Back-Up Power in lieu of determining Daily Operating Reserve requirements for each Party and the scheduling of Replacement Capacity i and Replacement Energy. Article 4, entitled CAPCO Coordinating Office, is amended by deleting reference in Subsection 4.02 (a) to specific types of operating information which the j CAPCO Coordinating Office shall have the duty and responsibility to collect, ( record and disseminate. j
(- Federal Energy Regulatory Commission Page 3 Article 5, entitled Operatina conditions, is amended in consequence of a sini-lar provision described in Article 3 by deleting the Section 5.07 requirements of each Party to provide Operating Reserve determined consistent with the rules and procedures established by the Operating Committee; and by deleting the Sec- - tion 5.09 obligation of the Parties to supply capacity and energy to each other on the mandatory basis presently provided in Article 6. Article 6, entitled Coordinated Operation and Services, presently consisting of 11 pages, is extensively revised into a new Article 6, entitled Coordinated Maintenance and CAPCO Back-Up Power, consisting of four pages. The amended Article continues Coordinated Maintenance responsibilities among the Parties, but discontinues unqualified Replacement Capacity and Replacement Energy en-titlements and obligations between the Parties in favor of a limited and qual-ified mutual back-up system designated as CAPC0 Back-Up Power. CAPC0 Back-Up Power shall consist of CAPC0 Unit Back-Up Power calling for back-up entitle-ments and obligations upon the loss of a CAPC0 Unit designated is the revised Agreement, and shall consist of CAPC0 System Back-Up Power to provide back-up entitlements and obligations upon the outage or outages of other units of the Parties. These entitlements to CAPCO Unit Back-Up Power and CAPC0 System Back-Up Power shall be netted, scheduled and billed as CAPCO Back-Up Power, I and such power will be made available from the least cost available power. Article 7, entitled Communications, is substantially unchanged, but has been ( amended to include voice communication and automatic generation control as a l means of communication. l Article 8, entitled Service Schedule, is amended by changing the title to Services, by changing the Schedule A title from Replacement Capacity and Replacement Energy to CAPCO Back-Up Power, by changing the Schedule B title from Short Term Power and Energy to Short Term Power, by changing the Sched-ule C title from Interchange Capacity and Energy to Non-Displacement Power, by changing the Schedule D title from Economy Interchange of Operating Capac-ity and/or Energy to Economy Power, by changing the Schedule E title from Specific Unit Capacity and Energy to Unit Power, by changing the Schedule G title from Pre-Commercial Equivalent Energy to Emergency Power and by delet-ing Schedule H, entitled System Capacity and Energy, which otherwise would expire December 31, 1980 under the Agreement. Article 8 is further amended by the additions of Sections 8.02 and 8.03 re-lating to transmission loss, accounting and procedures; and relating to modi-fled transactions resulting in material interference with facilities or opera-tion of the system of any Party, respectively. Article 9, entitled Executive committee, is substantially unchanged. Article 10, entitled Ohio Edison System, is substantially unchanged. Article 11, entitled Interconnection Points and Metering Pofuts, is insubstan-tially amended to change the title to Interconnection Metering, to delete Section 11.01 which defines the term " Interconnection Point," and to renumber ( the remaining sections of the Article.
Federal Energy Regulatory Commission Page 4 Article 12, entitled Records, is unchanged. Article 13, entitled Statements, Billinas, Settlements and Pavnents, is un-changed except that Section 13.02 requires the payment of billing statements on the 25th day of the month in which presented or on the 15th day following receipt, whichever date is later, in lieu of requiring payment 15 days after the date of such statements. Article 14, entitled Governmental Approvals, is amended by the addition of Section 14.02 which subjects the revised Agreement to the jurisdiction of governmental authorities and which expresses the right of any Party t uni-laterally make application to the Federal Energy Regulatory Commission for a change in rates under the Federal Power Act and pursuant to the Commission's Rules and Regulations promulgated thereunder. Article 15, entitled Notices, is amended to require written confirmation of certain oral notices to be 2iven within three working days rather than within three days. Article 16, entitled Non-Waiver, is not amended. Article 17, entitled Arbitration, is not amended. Article 18, entitled Assignment, is not amended. Article 19, entitled Governing Law, is not amended. Article 20, entitled Other Agreements, is amended by the substitution of the date of August 31, 1980 for the date February 2,1968, so that the revised Agreement is not to be interpreted as conflicting or interfering with the performance of any agreement between any Party and any system effective prior to August 31, 1980. Article 20 also terminates the following agreements iden-tified by FERC rate schedule numbers shown for each listed Company: Company FERC Rate Schedule Number (s) The Cleveland Electric Illuminating Company 2 and 2.1 Doquesne Light Company 10 Ohio Edison Company 42, 42.1, 68, 68.2, 71, 71.1, 71.2 and 71.3 Pennsylvania Power Company 21, 21.1, 21.2 and 21.3 The Toledo Edison Company 3 and 3.2 Article 21, entitled Term of Agreement, is amended by deleting the Section 21.01 expiration date of September 1, 1980 and by substituting language to continue the revised Agreement in effect until such time as all CAPCO Units are retired; and by adding Section 21.02 to permit any Party to withdraw from the revised Agreement by giving one year's advance notice in writing, provided that such withdrawal shall not discontinue Coordinated Maintenance of CAPCO Units, CAPCO Unit Back-Up Power, and CAPCO Coordinating Office obli-gations until such time as all CAPCO Units are retired.
d i
'( Tederal Energy Regulatory Commission Page 5 4
Article 22, entitled Separate Indentities, is not amended. Article 23, entitled Force Majeure, is not amended. Article 24, entitled Liability, is amended by deleting the Section 24.02 4 reference to Section 6.12 and by substituting therefor a reference to Sec-tion 8.03. Schedule A, entitled Replacement Capacity and Replacement Enerry, which pro-vided for mandatory replacement capacity and replacement energy transactions, compensation for such transactions and the banking of entitlements and obli-sations resulting from such transactions, is deleted and substituted for by a new Schedule A now entitled CAPC0 Back-Up Power. Settlement of all imbalances
! in the replacement capacity and replacement energy accounts under the old Sched-l ule A shall be made within 60 days in sccordance with Section f, entitled, l
"Effect of Termination," of old Schedule A. The new Schedule is applicable to CAPCO Back-Up Power transactions among the Parties pursuant to the provisions of Article 6 of the Agreement, shall terminate as to provisions relating to CAPCO System Back-Up Power on August 31, 1982 unless extended, and sets forth compensation charges for CAPCO Back-Up Power.
Schedule B, entitled Short Term Power and Energy, is amended by shortening the title to Short Term Power; by providing for the reservation of short ters ( power for periods of one or more days in addition to the weeks previously pro-vided; and by revising the compensation sections. Schedule C, entitled Interchange Capacity and Energy, is amended by changing the ' title to Non-Displacement Power and by revising the compensation sections. Schedule D, entitled Economy Interchante of Operating Capacity and/or Energy, is amended by shortening the title to Economy Power and by providing for multi-ple party transactions. . Schedule E, entitled Specific Unit Capacity and Energy, is amended by shorten-ing the title to Unit Power and by deleting references to the previous manda-tory CAPCO Group allocation procedures. Schedule T, entitled Out-of-Pocket Costs, is amended by deleting specific ref-erences to various costs and by substituting a generic listing of operating capacity costs, energy costs, and purchased power costs. Schedule G, previously entitled Pre-Commercial Equivalent Energy, terminated under its own terms on December 31, 1975 and is replaced by a new Schedule G entitled Emerzeney Power. This Schedule requires the Parties to provide emer-gency power in the event of breakdown or other emergencies in or on the systems of other Parties except where a supplying Party cannot deliver emergency power without interposing a hazard upon its operations or without impairing or jeop-ardizing its load.
/
I
Federal Energy Regulatory Commission Page 6 ( Correspondence with respect to this filing should be addressed to each of the undersigned. Very truly yours, NY / _. e e Y !Y / Russell J. Spetrino, Esq. i~ - . ames R. Edgerly,'Isq.[/f/
/YicePennsylvania President and Generar Counsel Vice President and General Counsel Power Company Ohio Edison Company One East Washington Street 76 South Main Street New Castle, Pennsylvania 16103 Akron, Ohio 44308 de ' s a . A '
- William J. Kerner, Esq. Walter T. Wardzinski,1 sq.
Senior Corporate Counsel General Attorney The Cleveland Electric Duquesne Light Company Illuminating Company 435 Sixth Avenue P.O. Box 5000 Pittsburgh, Pennsylvania 15219 Cleveland, O o 44101 ( A
- 1 atf1 ?!. Sma'rt,'Es f Fuller, Henry, Hodge & Snyder 1200 Edison Plaza P.O. Box 2088 Toledo, Ohio 43605
(~ CAPCO BASIC OPERATING AGREEMENT AS AMENDED SEPTEMBER 1, 1980 l l ( Attachment C 011lGil1Q
Conformed copy i l l CAPC0 BASIC OPERATING AGREEMENT As Amended September 1, 1980 The Cleveland Electric Illuminating Company Duquesne Light Company Ohio Edison Company Pennsylvania Power Company The Toledo Edison Cosyany ( Conformed copy
I . ( INDEX Pete No. Article 1 -- Purpose of Agreement 1 A-ticle 2 -- Definitions 2 s rticle 2 -- Operating Committee 5
\rticle 4 --
CAPCO Coordinating Office 7 i.r*icle 5 -- Operating Conditions 10 5.01 Parallel Operation 10 5.02 Frequency 11 ! 5.03 Megavars 11 5.04 Unscheduled Energy 12 j 5.05 Transmission Operation 12 5.06 Coordinated Maintenance 12 5.07 Unit Availability 13 5.08 Utilization of CAPCO Units 13 (. /.rticle 6 -- Coordinated Maintenance and CAPCO Back-Up Power 14 6.01 Coordinated Maintenance 14 6.02 CAPCO Back-Up Power 14 6.021 CAPCO Unit Back-Up Power 14 6.022 CAPC0 Systen Back-Up Power 15 6.03 Scheduling CAPCO Back-Up Power 16 6.04 Obligation to Provide CAPCO Back-Up Power 16 6.05 Proportional Supply of CAPCO Back-Up Power 17 Article 7 -- Communications 17 Article 8 -- Services 18
#eticle 9 --
Executive Committee 20 A"cicle 10 -- Ohio Edison System 20 Art.icle 11 -- Interconnection Metering 21 A ticle 12 -- Records 22 Article 13 -- Statements, Billings, Settlements and Payments 22 Ar'icle 14 -- Governmental Approvals 23
,gA - (Cont'd) Pane No.
..rticle 15 -- Notices 24
\rticle 16 -- Non-Waiver 24 Ar icle 17 -- Arbitration 24 trticle 18 -- Assignment 27
*rticle 19 -- Governing Law 28 Arr.icle 20 -- Other Agreements 28 i Article 21 -- Term of Agreement 29 l l
s.rticle 22 -- Separate Identities 30 { Article 23 -- Force Majeure 30 ; t.rticle 24 -- Liability 31 (-. i l l l l l l (
C. CAPCO BASIC OPERATING AGREEMENT (As Amended September 1, 1980) This Agreement, effective as of the first day of September, 1940, by and among The Cleveland Electric Illuminating Company, an Ohio corporation ("CEI"); Duquesne Light Company, a Pennsylvania corporation ("DL"); Ohio Edison Company, an Ohio corporation, Pennsylvania Power Company,
.t leansylvania corporation and a wholly-owned subsidiary of Ohio Edison C ampany which company and its said subsidiary, except as otherwise provided lerein, are considered as a single Party for the purposes of this Agreement and referred to as ("0E"); and The Toledo Edison Company, an Ohio corporation
("TE"); each of which is sometimes referred to as a Party, or Owner and col-
).tetively as the Parties, Owners or CAPCO,
( W I T N E S S E T H: 0.01 The Parties own electric utility systems located in Western Pennsylvania, Northern and Central Ohio, and are engaged in the generation, transmission and distribution of electric power. 0.02 The systems of the Parties are interconnected directly o: indirectly and are operated in synchronism. ARTICLE 1 Purpose of Agreement f 1.01 It is the purpose of this Agreement to provide for the c)ordinated operation of the systems of the Parties, so as to (1) provide _ _ _ _ _ _ _ _ _ _ _ _ l
l l i l
..: tse utilization by each of the Parties of facilities heretofore provided s et by the Parties; (2) provide a degree of mutual support; (3) provide for l l I ;.pacity and energy transactions by and among the Parties; (4) permit coordi- !
tation of the operation of the systems of the Parties; and (5) achieve an l egaitable sharing of the responsibilities, riska and expenses and of the r esulting benefits of coordinated operation of the systems of the Parties. ARTICLE 2 l Definitions t The definitions in this Article shall apply to this Agreement and I t o the Schedules hereto, unless otherwise expressly provided in such Schedules. ( 2.01 Ar.ual Capacity of a Party shall mean the sum of the Net PP_monstrated Capabil!.ty of its ownership shares in CAPCO Units, plus its l l 1 dividual Capacity (in all cases to the extent then in commercial operation) I adyssted in all cases for seasonal factors existing at the time pursuant to , I tt e document entitled, "CAPCO Group Common Method of Rating Generating Equip- l m2ut," dated October 17, 1969, as amended from time to time, plus such Party's i individual purchases less such Party's ir.dividual sales (but shall exclude pawer scheduled to be received by a Party to provide for deliveries to coopera- l L've systems and power purchased by a Party pursuant to contracts with other 6ys*. ems entitling such Party to purchase up to the entire requirements of specified buyers from such other systems). i ( t
( 2.02 CAPCO Unit shall mean any one of the following listed 1.' nits : W. H. Sammis Generating Station Unit No. 7, Bruce Mansfield Unit No. 1, Bruce Hansfield Unit No. 2, Bruce Mansfield Unit No. 3, Davis-Besse Nu-
.-taar Power Station Unit No.1, Beaver Valley Power Station Unit No.1, deaver Valley Power Station Unit No. 2, Eastlake Generating Station Unit No.
$, Perry Nuclear Power Plant Unit No.1 and Perry Nuclear Power Plant Unit
!!o. 2.
2.03 Coordinated Maintenance Schedule means the schedule es-srblished under the direction of the Operating Committee pursuant to Section
- . 01.
2.04 Individual Capacity of a Party as of any date is the sum ( of the following: (a) The Net Demonstrated Capabilities of the generating tas!.ts or portions thereof owned or leased by such Party in commercial opera-t:on and not placed in cold reserve, but exclusive of ownership of CAPCO Utits. (b) The equivalent Net Demonstrated Capability of such
?sity's portion of the Ohio Valley Electric Corporation ("0VEC") capacity.
2.05 Interruptible Load of a Party is the total of megawatt-h mrs delivered during any clock hour to its retail customers or to munici-pal or cooperative systems which the Party, in its sole discretion, is psivileged to curtail or completely interrupt in accordance with a rate s :hedule or contractual arrangement with such customer or customers; and load
(
.: the service of which no other Party is obligated to supply CAPC0 SysteL ack-Up Power; and load which does not affect the determination of such Farty's obligation to supply CAPC0 System Back-Up Power.
2.06 Lead of a Party during any clock hour is the total during may such clock hour (eliminating on an agreed basis any distortion arising cut of deliveries between systems where material) of megawatthours (a) de-
'ivered by the Tarty to its retail customers and to municipal systems, (b) used by the Party on its own system, exclusive of use for station auxiliary prreer, and (c) lost and unaccounted for on the system of the Party; but aball exclude Interruptible Load.
( 2.07 Minimum Operating Reserve of a Party, unless otherwise determined by the Operating Committee, shall mean a spinning reserve of not 1::ss than 3% of the projected daily Peak Load of such Party. 2.08 Net Demonstrated Capability of a generating unit as of cav time means that most recently determined pursuant to the methods and ptinciples set forth in the document entitled, "CAPC0 Group Common Method o f Rating Generating Equipment," dated October 17, 1969, as amended from t..me to time. 2.09 Operating Capacity of a Party during a particular day shall mean that portion of a Party's Actual Capacity to the extent actually is operation or expected to be in operation.
l C 2.10 Operatina Reserve of a Party means that component of
.perating Capacity which is unloaded, plus Quick Start Capacity and Inter-
-ugtible Load to the extent they can be so included in accordance with rules
- nd procedures established by the Operating Committee.
2.11 Peak Load of a Party for any period of time is the maxi-v'n Load of the Party for any clock hour of the period. 2.12 Power or power shall include electric power and energy ctpressed in megawatts and negawatthours. 2.13 Quick Start Capacity means generating capacity which can be started, synchronized to the system and loaded within a time period as ( a?ecified by the Operating Committee. i ARTICLE 3 Operatina Committee 3.01 The Operating Committee shall be that established pursuant t) the CAPCO Administration Agreement dated as of September 14, 1967, as the r ane may be amended from tim to time. 3.02 Each Party shall make available to the Operating Comunittee 11 data .sd information reasonably required to enable it to perform its duties. (
I
- ( 3.03 The Operating Committee shall direct the activities of the CAPCO Coordinating Office.
3.04 The Operating Counittee shall be responsible for estab-
.ishing, maintaining and revising as necessary tL; Coordinated Maintenance echedule.
3.05 The Operating Comnittee shall be responsible for the as ablishment and administration of rules and procedures to coordinate the c.9eration of the systems of the Parties to effectuate the purpose of this Agreenent. Without limiting the generality of the foregoing, the Operating taasittee shall establish rules and procedures for: ( (a) The determination of billing costs and other factors
- i. sed for scheduling and billing of transactions hereunder; (b) The determination of the increase or decrease of electrical losses incurred as the result of transactions hereunder; (c) The establishment and periodic revision of the re,ordinated Maintenance Schedule which shall be reviewed at least annually; (d) The determination of the Minimum Operating Reserve fer each Party; (e) The scheduling of CAPCO Back-Up Power as provided n Article 6; and
l ( (f) Accumulating and recording load, capacity and other
- perating data needed to evaluate performance under the various CAPCO
,greements.
3.06 The Operating Committee shall conduct studies of the
.e rdinated operation of the systems of the Parties for the purposes of tt.ts Agreement, and make recommendations with respect thereto, including recom-
.aecdations with respect to the development and coor:lination of an adequate cois-i.unication system. The Operating Committee is authorized to create task forces fo particular studies and to appoint the members thereof who need not be men-b rs of the Operating Committee. Subject to such limitations as any be imposed by the Executive Committee, the Operating Committee is authorized on behalf of t'2e Parties to hire consultants ar.d computer time and to incur other expenses
( is the making of any of its studies. ARTICLE 4 CAPCO Coordinatina Office 4.01 The CAPCO Coordinating Office (" Office") located in Massillon, Ohio, shall, unless otherwise agreed, be equipped by OE as necessary to accomplish its functions as hereinafter provided. 4.02 The Operating Committee shall appoint a manager who, subject to the general supervision of the Operating Committee, shall select necessary pirsonnel and be responsible for operation of the Office. The Office shall have the following duties and responsibilities: {
( (a) To collect, record and disseminate operating information as may be assigned by the Operating Committee. (b) To prepare monthly budgets covering such time periods as shall be specified by the Operating Committee. (c) To perform such other functions as may be assigned by
.he Operating Committee.
4.03 Each Party shall supply to the office such information as my be reasonably required by the Operating Committee for the functioning of the Office. ( 4.04 All regular personnel of the Office shall, for administra-tion purposes, be carried on the payroll of CEI or its nominee at compensation ubich shall be as extended to CEI employees similarly situated, and such other nonetary or nonnonetary benefits as may be required by law. Such compensation shall include benefits not less favorable than extended to CEI employees sini-ltrly situated but excluding such benefits as directly related to employment by CEI as such. Changes in compensation levels and in benefit plans shall be
- a. recommended by the Operating Committee and as approved by the Executive Ccrmittee. CEI or its nominee shall be responsible for fiscal administration of the Office. The Party in whose service area the Office is located, or its cominee, shall be responsible for physical maintenance and servicing of the Office. The use of a nominee by any Party pursuant to this Article 4 shall rot relieve such Party of any of the obligations of such Party under this Agreement.
( 4.05 All costs, including overheads and fixed charges as appro-eriate, associated with the establishment, construction, equipping and opera-f an of the Office shall, unless otherwise agreed as to any particular cost, te allocated among the Parties as follows: one-half shall be divided among the Parties equally, and one-half shall be divided on the basis of the ratio of the average of the annual Peak Loads of each Party for the three calendar years immediately preceding the calendar year of incurring the cost to the
.ggregate of such averages.
All costs, including overheads, fixed charges as appropriate, and any capital associated with the establishment, construction, equipping and speration of the Office at another location shall be allocated among the Parties as agreed. 4.06 The Party or Parties incurring expenses associated with the establishment, construction, equipping and operation of the Office shall bill the. Office monthly for such expenses incurred. The Office through GI or its nominee shall (a) allocate such charges in accordance with Section 4.05, (b) to the extent practicable, offset or reduce to a net basis said charges in order ta provide a minimum practicable number of payments among the Parties, and (c) render appropriate itemized bills to each Party, payable to the Party or Parties fr. curring the expense or cost within 15 days after billing. Such statements may he rendered on an estimated basis subject to corrective adjustments in subsequent statements. Billings to OE shall be divided between Ohio Edison Company and leansylvania Power Company as directed by them.
( 4.07 OE or CEI, as may be appropriate, shall, with the approval if the Operating Committee, procure and maintain any insurance deemed appro-f riate in respect of the ownership, operation and maintenance of the Office, and the premium cost thereof shall be deemed an operating expense to be shared iv the Parties in accordance with Section 4.05. 4.08 Claims for bodily injury, death or damage to property or rusiness of third parties, not covered by insurance provided pursuant to tection 4.07 caused by or resultinF from action or failure to act of the Citice, shall be the responsibility of the Parties on the basis of the ratio of the average of the annual Peak Loads of each Party for the three calendar years immediately preceding the calendar year in which such claim arises to the aggregate of such averages. 4.09 Each Party hereby waives any and all claims it may have against any other Party arising from negligence or other fault of the Office ia connection with operations under this Agreement. ARTICLE 5 Operatina Conditions 5.01 Each Party shall operate its system continuously in parallel with each other Party with which it is interconnected. Unless otherwise mutually
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agreed which agreement shall not be unreasonably withhe1d, all existing inter-concections between the systems of the Parties operating at nominal voltages of 138,000 volts and above shall normally be operated closed. Each Party shall +k maintain and operate its system so as to minimize the likelihood and effect of 1
(
?! .turbances on its system which might impair the service on the system of any st5er Party. Each Party shall be the sole judge whether service on its system 4 3 being impaired by conditions on the system of another Party and any itself ase, or request such other Party to take, appropriate corrective action to re-
..,re
- normal operating conditions as soon as reasonably practicable.
Power which is supplied by one Party to another Party threagh inter-
.onnections normally operated open or through a temporary interconnection point
.* hall be compensated for by the other Party delivering to the first Party through a ther interconnections an equivalent amount of power in like amount and kind. It is the intent of the Parties that, whenever feasible, such compensation shall be made simultaneously with the delivery of power through such interconnections.
( 5.02 Each Party shall use its best efforts to operate its system rr, as to aid in maintaining the frequency on the systems of the Parties at a ominal 60 Hz within the limits for normal operating deviations as established from time to time by the Operating Committee. 5.03 Each Party shall, to the extent practicable, operata its ovetes so as to avoid the creation of objectionable operating conditions on T t'.e system of another Party due to the transfer of negavars. Subject to the 1)regoing, the Operating Consiittee shall (a) establish operating procedures ter the coordination of negavar supply associated with flows of power pur-soint to this Agreement, and (b) determine the circumstances under which a Party shall compensate another for supplying segavars in connection with flows if power pursuant to this Agreement and recomend the amount of such compensation. l 1
- . _ _ _ . _ _ _ . _ _ _ . _ _ _ _ _ _ _ . . _ _ _ _ m
I C 5.04 Each Party shall exercise reasonable care to minimize, to ; t.he extent practicable, unscheduled deliveries or receipts of electric energy. Qe Parties recognize, however, that despite their best efforts such unscheduled deliveries or receipts of electric energy may occur. Electric energy delivered c r received in such event shall be settled for by return of equivalent energy.
.c shall be returned at times when the load :onditions of the returning Party are equivalent to the load conditions of such Party at the time the energy for unich it is returned was received, unless otherwise agreed.
5.05 The Parties recognize that in the day-to-day operation of tteir systems the transmission facilities of any Party may, as a natural result ii the physical and electrical characteristics of the interconnected network of tr.nsmission lines of which the transmission lines of the Parties are a part, [
-arry power from one portion of the system of one of the Parties to another por-tion of that Party's system, or carry power intended to be transmitted to or from the system of one of the Parties from or to the system of another Party or o.her systems. The Parties will use their best efforts to resolve promptly any cperating probless thereby created, including but not limited to curtailing or in'.errupting Interruptible Load and Economy Power transactions with other Parties end/or other systems. ,
5.06 Each Party shall, to the fullest extent practicable: l l (a) Maintain generating units in accordance with the Co>rdinated Maintenance Schedule. [ i ( i
)
C (b) Coordinate with the other Parties the scheduled outages
.f transmission facilities operating at nominal voltages of 138,000 volts or
= % . se (c) Return generation and transmission facilities to
- ervice in good operating condition with reasonable promptness.
(d) Advise the other Parties as to its maintenance prac-cices and policies and any changes therein, and cooperate in attempts to
.ccelerate or defer maintenance of generation and transmission facilities in er.eergency situations.
5.07 Each Party shall be the sole judge as to whether, due to k p.2ysical conditions beyond its reasonable control, a generating unit oper-ated by such Party is unavailable for operation or unavailable for continued operation or must be derated or temporarily removed from service; provided, n wever, that unavailability for operation or continued operation, or de-riting, for reasons of limitations of fuel supply for a CAPCO Unit, shall be utermined in accordance with rules and procedures established by the Operat-ta: Committee. 5.08 Each Party shall be entitled to the full utilization, with respect to capacity and energy, when a CAPCO Unit is available and based on a2d in proportion to the actual day-by-day operating capacity, of (a) its t,nership share of capacity in that Unit, plus (b) its entitlement to receive capacity from anot.her Party's ownership share in such Unit, and minus (c) its (
( l
,cilgation to provide capacity from such Unit. Scheduling of such capacity and energy entitlements shall t<e adjusted appropriately for transmission
.ine losses, i
ARTICLE 6 Coordinated Maintenance and CAPCO Back-Up Power 6.01 The Parties shall coordinate the outages for maintenance of a 11 CAPCO Units and such other units of the Parties as are identified by the Operating Committee and for such purpose the Coordinated Maintenance Schedule
- shall be developed and maintained in accordance with rules and procedures established pursuant to Section 3.05.
( 6.02 In order to provide back-up for CAPCO Unit outages, Operating hserve shortages or a combination of both, each Party shall have an entitlement to receive or an obligation to provide operating capacity or operating capacity aad associated energy in the form of CAPC0 Back-Up Power. CAPC0 Back-Up Power shall consist of CAPCO Unit Back-Up Power and CAPCO Systen Back-Up Power, and
.hmil be compensated for in accordance with Schedule A of this Agreement.
6.021 In the event of the forced or scheduled outage of any CAPC0 Unit in commercial operation (except those Units in cold reserve), ech Party agrees to provide or shall have the right to receive, as the case may be, CAPCO Unit Back-Up Power in an amount equal to the difference between such Party's ownership share in the CAPCO Unit out of service, expressed in mega-ntts, and a value determined by multiplying the Net Demonstrated Capability of the CAPCO Unit out of service by the ratio of such Party's ownership share of the
v et Demonstrated Capability of all of the CAPC0 Units in commucial operation to ( the total Net Demonstrated Capability of all of the CAPC0 Units in commercial w rstion. l 6.022 Each Party shall use its best efforts to operate trs system so as to provide the amounts of Minimum Operating Reserve deter-sined consistent with the rules and procedures established pursuant to
- ection 3.05.
If on any day any Party's Operating Reserve is projected for the next succeeding day to be less than its Minimum Operating Reserve, after giving effect to its net entitlement or obligation relating to CAPCO Unit Back-Up P)wer, such Party shall during such next succeeding day be entitled to receive (IPCO System Back-Up Power up to 100 mW from each Party obligated to provide ( oc up to the receiving Party's Minimum Operating Reserve, whichever is less provided, however, that if on any day more than one Party shall be obligated to provide CAPCO System Back-Up Power, each supplying Party shall be obligated to provide a share of the total obligation that is proportionate to such Party's si,are of the total reserves available for CAPCO System Back-Up Power on the sys-tems of the supplying Parties. If on any day any Party's Operating Reserve is projected for the next succeeding day to be more than its Minimum Operating Reserve, it shall be obligated to provide during such next succeeding day CAPC0 System Back-Up P.wer up to a maximum of 100 mW or an amount which will reduce the supplying Isrty to its Minimum Operating Reserve, whichever is less. No Party shall be on'.igated on any hcur of any day to provide more than 100 mW of CAPCO System I { *=ck-Up Power. l t
6.03 Pursuant to rules and procedures established by the Operating Committee, CAPC0 Back-Up Power for the next succeeding day shall be arranged
.a a net basis, initially at 1200 hours on the preceding day or such other time l
autually agreed upon by the Operating Consittee, and shall be scheduled as re-euested by the receiving Party. CAPCO Unit Back-Up Power and CAPCO System Back-Up Power shall be ne:ted, scheduled and billed as CAPCO Back-Up Power. A receiving Party shall rave the right to receive all or any par. sf such Party's net entitlement to CAPCO be k-Up Power. 6.04 Each Party is obligated to provide CAPCO Back-Up Power after eopplying its Load and meeting its Minimum Operating Reserve, except when the I delivery of such Power would, in the judgment of the supplying Party, have to te interrupted or reduced to preserve the integrity of or to prevent or limit an) instability on the supplying Party's system. If a Party having an obliga-tion to supply does not have sufficient capacity available on its own system to meet the obligation, it is obligated to purchase capacity and associated energy if available to provide CAPCO Back-Up Power. For cach day that a Party is unable to fulfill all or any part of its obligation to provide CAPC0 Back-Up Power because it is supplying power o:her that. CAPCO Back-Up Power to another Party or to a non-CAPCO party, except pursuant to obligations imposed by governmental authorities, agreements referred to in Article 20, and any additional agrements excepted by the Parties, such Party shall pay an amount equal to twice the daily demand charge for the CAPCO ( Bick-Up Power not provided by such Party to the other Parties to be shared in l l
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- portica to the entitlements which were not fulfilled. In the event any Party it unable to provide CAPCO Back-Up Power in any substaatial amount over an e vtendad period and reserves substantial CAPCO Back-Up Powcc from others, the heties shall develop corrective measures such as, but not limited to, increasing ida demand charge rate.
6.05 CAPCO Back-Up Power will be made available in proportion to irrty entitlements from supplying Parties in pecportion to their obligations, a.13 will be made available from the least-cost available power. In the event hat a receiving Party or Parties reserve less than its or their entitlement of CAPCO Back-Up Power, the remaining CAPCO Back-Up Power will be made available from the supplying Parties in proportion to their obligations to the other re-cr.iving Parties in proportion to their entitlements from such least-cost avail-f.ble power. CAPCO Back-Up Power obligations not reserved by the receiving Par-t.es shall be deemed released to the supplying Parties. ARTICI.E 7 Communications 7.01 The Parties will establish communication facilities as may be r.. quired to provide voice communication, telemetering, automatic generation con-t rol, :nonitoring, tie-line control, and other functions as may be determined from tie.e to time by the Operating Cossaittee, or as required by other agreements s.mong
*he Parties. Such comunication facilities will consist of existing communication links owned or leased by the Parties as well as communication links to be built or lessed by the Parties. It is understood that extensive use of microwave links will
( be made pursuant to the CAPCO Microwave Sharing Agreement, dated as of October 1,
(' *,<7, as amended from time to time, although carrier current and wire communication facilities will be used as deemed appropriate by the Operating Comnittee. Con-sanication links other than microwave will be provided, operated and paid for as de. ermined by the r/perating Committee following as closely as possible the prin-
.iples established in said Sharing Agreement.
ARTICLE 8 Services 8.01 The specific services and transactions among the Parties p2rsuant to this Agreement shall be in conformance with the terms and condi-ticas of this Agreement and as set forth in Schedules arranged from time to i time s.mong the Parties. ( The following Schedules are agreed to and hereby made a part of , i this Agreement: Schedule A -- CAPCO Back-Up Power f Schedule B -- Short Term Power Schedule C -- Non-Displacement Power Schedule D -- Economy Power . Schedule E -- Unit Power Schedule F -- Out-Of-Pocket cost Schedule G -- Emergency Power ; l
( The Parties may, from time to time, agree on modifications to or
.dditional Schedules, and upon execution thereof by the Parties any such "Aification or addition shall become a part of this Agreement.
8.07 Energy transactions (other than those arising under Schedule E) shall be scheduled as if there were zero transmission losses.
? Party receiving such energy from another Party (whether such Party is
.eting as a supplying or transeitting Party arising under Schedule D of t'ns Agreement) shall be charged with any increase in transmission losses nad/or shall receive credit for any decrease in transmission losses associ-sted with the transmission of the energy through the systems of Parties otter than that of the supplying Party. Tr.nsmission losses will be ac-c;unted for by separate calculation in a manner prescribed by the Operating
( Committee. Loss imbalances shall be repaid through loss-payback schedules arranged by the Office. 8.03 If any transaccion results in material interference with the facilities or operation of the system of any other Party, the Parties to tTe transactions promptly shall take appropriate actions which may include, amcag other things, modification of the transaction to eliminate such inter-firences and compensation to the Party affected for incressed operating costs or damage to facilities.
I 1 ( ARTICLE 9 Executive Committee 9.01 The Executive Committee shall be that established pur-
.uant to the CAPCO Administration Agreement, dated as of September 14, 1967, as the same may be amended from time to time.
9.02 The Executive Committee shall have the duties and powers conferred on it by this Agreement, including the making of any decision or determination necessary under any provision of this Agreement and not ex-tressly specified to be decided or determined by any other person or persons. ARTICLE 10 Ohio Edison System 10.01 Ohio Edison Company and Pennsylvania Power Company shall be c>nsidered to be separate Parties under this Agreement whenever and to the ex-tent that separate corporate action is required of such Companies in oroer to a:complish the purpose of this Agreement, but their liability and responsibility for the performance of any obligation of OE hereunder to the other Parties shall te joint and several. The allocation between Ohio Edison Company and Pennsylvania hwer Company of their collective obligations hereunder as OE shall be the sole rtsponsibility of said Companies, but they undertake that they will, during the period that they shall be obligated under this Agreement, have in force one or ma-e arrangements for the allocation of the whole of such collective obligations and will, upon the request of any of the other parties hereto, furnish the request-( ing Party or Parties satisfactory evidence of the existence of their then effec-tive arrangements relating tt such allocation.
l 1 f ( ARTICLE 11 Interconnection Meterina 11.01 Electricity flowing across an interconnection shall be
-ensured by suitable metering equipment at metering points agreed upon by t2e Parties to the interconnection. The equipment at such setering points s hall be provided, owned and maintained as agreed by the affected Parties.
l l 11.02 Measurements of electric energy for the purpose of effect-n.g settlements shall be made by standard types of electric meters installed 4ad maintained by the owners at the metering points. The timing devices of a.1 meters having such devices shall be maintained in time synchronism as closely as practicable. The meters shall be sealed and the seals shall be ( bccken only upon occasions when the meters are to be tested or adjusted. 11.03 The aforesaid standard metering equipment shall be tested by the owners at suitable intervals and its accuracy of registration main-t.ined in accordance with good practice. On request of any affected Party, a special test may be made at the expense of the Party requesting such special te:. Representatives of all affected Parties shall be afforded opportunity t > be present at all routine or special tests and upon occasions when any readings, for purposes of settlements, are taken from meters not bearing an sutomatic record. For the purpose of checking the records of the metering ee;uipment installed by a Party as provided above, the other affected Party shall have the right to install check setering equipment at its own expense at the setering points referred to in Section 11.01. (
11.04 If any test of metering equipment shall disclose an in-ac.:uracy greater than 2%, the accounts among the affected Parties for service theretofore delivered shall, unless otherwise agreed by the affected Parties, h adjusted to correct for the inaccuracy disclosed over the shorter of the ollowing two periods: (1) from 30 days prior to the receipt of written re-luest for the test until the seter is corrected; or (2) for the period that' tuch inaccuracy may be determined to have existed. Should the metering equipment at any time fail to register under load conditions, or registers juring times of zero flow, the electric energy delivered shall be determined f:oa the best available data. ARTICLE 12 Records 12.01 Each Party shall keep such records as may be reasonably required by the Executive Committee or the Operating Committee, and shall turnish to such committees such records, reports and other information as they may reasonably require. ARTICLE 13 Statements, Billings, Settlements and Payments 13.01 As promptly as practicable within 10 days after the end of each calendar month, the Office shall prepare and furnish to asch Party a statement showing the debits and credits to each Party for electric power transactions hereunder during such month and, to the extent appropriate, offset or reduce said transactions to a net basis. From the Party balances
( w determined, each Party, or the Office when so directed by the Operating Committee, shall prepare and send to each Party, as appropriate, a billing wr.atement for all transactions which occurred during the month and involve rayment of money. Billing statements may be rendered on an estimated basis mbject to corrective adjustments in subsequent statements. 13.02 Billing statements rendered pursuant to Sectfon 13.01 shall r.2 due and payable on the 25th day of the month in which presented or on the . 15th day following receipt, whichever date is later. Interest on unpaid amunts shall accrue from the due date at the rate of one percent (1%) per nonth or part thereof. ARTICLE 14 ( Governmental Approvals 14.01 The obligations of each of the Parties hereunder are
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subject to the obtaining of any requisite orders, approvals, permits, cer-tificates or licenses from any governmental authorities having jurisdiction. 14.02 This Agreement is made subject to the jurisdiction of any Sovernmental authority or authorities having jurisdiction in the premises. A thing contained in this Agreement or any Schedule of this Agreement shall be construed as affecting in any way the right of any Party to unilaterally sak.e application to the Federal Energy Regulatory Commission for a change in ntes under the Federal Power Act and pursuant to the Consission's Rules and H gulations promulgated thereunder.
l ARTICIZ 15 Notices 1 15.01 Notices or requests, when required under this Agreement o be in writing, shall be delivered in person or mailed to the addressee at such Party's general office. Other notices or requests required under this Agreement may be given orally and, if required by the other Party, thr.11 thereafter be confirmed in writing within three working days. Copies of notices or requests, confirmations of oral notices or requests,'and fuformation as to oral notices or requests shall be provided to the Office in accordance with procedures established by the Operating Committee. ARTICLE 16 ( Non-Waiver 16.01 Any waiver at any time by any Party of its rights with r.:spect to any matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent similar matter. Any delay, an. art of the statutory period of limitation, in asserting or enforcing any right under this Agreement, shall not be deemed a waiver of such right, cztept as provided in Section 17.01. ARTICII 17 Arbitration 17.01 Any controversy or claim arising out of this Agreement, including the refusal by any Party to perform the whole or any part hereof,
C- ,uuti, upon demand of any Party aggrieved, be settled by an Arbitration Beard, which shall consist of three nonrepresentative members and such ad-4;tional representative members as hereinafter provided in this Section. No person shall be eligible for appointment as a nonrepresentative member
- f the Arbitration Board who is an officer, employee, shareholder of, or otherwise interested in, any Party or any affiliate thereof or in the matter ;
sought to be arbitrated. Unless otherwise agreed, no deoand for arbitration shall be a de more than one year after the Parties have reached an impasse as to the iontroversy or claim involved. The Party or Parties demanding arbitration shall serve written notice upon the other Party or Parties to the controversy, retting forth in detail the matter or matters with respect to which ( arbitration is demanded, and shall serve copies of such notice upon any otiier Parties hereto. Within a period of 10 days from the date of receipt d the aforesaid written notice, each Party to the controversy shall a;, point a representative to serve as a member of the Arbitration Board; and, within a period of 30 days from such date of receipt of such written notice, s:ich representative members shall unanimously agree upon the persons who l snail serve as the three nonrepresentative members of the Arbitration Board. 1 If the representative members are not so appointed within the
- jecified 30-day period, or if the representative seabers shall fail to unanimously agree under the appointment of any or all of the three non-representative members of the Arbitration Board within the specified 30-d.y period, any Party to the controversy may, upon written notice to the
(
(' n.:.er Parties to the controversy, request the American Arbitration Asso-1 c!4 tion to submit to the Parties to the controversy a list from its panels
>t arbitrators of the names of at least seven persons from which the non-cepresentative member or members who have not been so appointed shall be selected in accordance with the Commercial Arbitration Rules of such association.
If any Party to the controversy shall fail to appoint its repre-entative seaber within the specified 10-day period, such Party shall be teemed to have waived its right to appoint such representative member and the Arbitration Board shall consist of the three nonrepresentative members aad such representative members, if any, as shall have been appointed in accordance with the provisions of this Section 17.01. The arbitration proceedings shall be conducted at a place, to be designated by the Arbitration Board, within the service area of one of the Parties to the controversy. The Arbitration Board shall afford adequate o',portunity to each Party to the controversy to present information with respect to the cmtroversy or claim submitted to arbitration and may re-quest further information from any such Party. Except as provided in the preceding sentence, the Parties to the controversy may, by mutual agree-ment, specify the rules which are to govern any proceeding before the Arbi-cration Board and limit the satters to be considered by the Arbitration B*.ard, in which event the Arbitration Board shall be governed by the terms and conditions of such agreement. To the extent of the absence of any such a;reement specifying the rules which are to govern any proceeding, the then (
E
.w rent applicable rules of the American Arbitration Association for the con- l dret of commercial arbitration shall govern the proceedings.
The arbitration shall be limited to the matter or matters speci-f.ied in the initial notice demanding arbitration and the award of the Board shall not affect or change any provision of this Agreement or any other
'ransaction between the Parties.
Procedural matters pertaining to the conduct of the arbitration and the award of the Arbitration Board shall be determined by a sajority of
'he nonrepresentative members thereof; provided, however, that the repre-sentative nenbers shall have full right and authority to participate in all ceetings and deliberations of the Arbitration Board leading to the award.
( Shc findings and award of the Arbitration Board, so made upon a determination ci a majority of the nonrepresentative members thereof, shall be final and conclusive with respect to the controversy or claim subaitted for arbitration rud shall be binding upon the Parties to the controversy except as otherwise provided by law. Such award of the Arbitration Board shall specify the unner and extent of the division of the costs of the arbitration proceedings a noag the Parties to the controversy. Judgment upon the award may be entered i.i any court, State or Federal, having jurisdiction. MTICLE 18 Assignment 18.01 No Party may, without the prior written consent of the ( o;hers, assign this Agreement, except as the same may be assigned (a) voluntarily
l l l C ' 2: otherwise under its first mortgage, or (b) to a successor to all or , substantially all of the assets of the Party by way of merger, consolidation, l
;.le or otherwise, where the successor assumes and becomes liable for all the
( obligations of the Party hereunier. ARTICLE 19 Governing Law 19.01 This Agreement is made under and shall be governed by the
) awe of the State of Ohio insofar as applicable.
ARTICLE 20 Other Agreements ( 20.01 During the term of this Agreement, its terms, conditions cod Schedules shall be applicable to transactions among the Parties. This Agreement is not to be interpreted as conflicting or interfering with the petformance of any agreement including modifications or amendments thereto between any Party and any systes not a Party to this Agreement, effective ptier to August 31, 1980. The Parties hereto shall be free to enter into any new agreements v th other Parties or with other systems which do not impair operations under ttas Agreement or the ability of a Party to perform its obligations under stis Agreement. (
- The following agreements identified by FERC rate schedule numbers shown for each listed company are hereby terminated:
Company FERC Rate Schedule Number (s) ine Cleveland Electric Illuminating Company 2 and 2.1 02quesne Light Company 10 Gbio Edison Company 42, 42.1, 68, 68.2, 71, 71.1, 71.2 and 71.3 Pennsylvania Power Company 21, 21.1, 21.2 and 21.3 I'uc Toledo Edison Company 3 and 3.2 ARTICLE 21 Term of Agreement 21.01 This Agreement shall continue in effect until such time as all CAPCO Units are retired. 21.02 Any Party may withdraw from this Agreement by giving one year's advance notice in writing to the members of the Executive Committee o ' the other Parties, provided that in the event of such withdrawal, the pro-visions of this Agreement relating to coordinated maintenance of CAPCO Units, CAPCO Unit Back-Up Power, and the CAPCO Coordinating Office shall continue in effect until such time as all CAPCO Units are retired. I
( ARTICLE 22 Separate Identities 22.01 The duties, obligations and liabilities of the Parties ne intended to be several and not joint or collective, and nothing herein toutained shall ever be construed to create an association, joint venture,
' rust or partnership or to impose a trust or partnership duty, obligation er liability on or with regard to any Party. Each Party shall be indivi-dually responsible for its own obligations as herein provided. No Party shall be under the control of or shall be deemed to control another Party by virtue of this Agreement. No Party shall have a right or power to bi.,d another without its or their express written consent, except as ex-pressly provided in this Agreement.
[ ARTICLE 23 Force Majeure 23.01 No Party shall be considered to be in default in the per-formance of any of the obligations hereunder if failure of performance shall ta due to uncontrollable forces. The tem " uncontrollable forces!! shall mean any cause beyond the contrcl of the Party affected, including but not limited to the failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, sar, riot, civil disturbance, labor dispute, sabotage, restraint by Court or.ler or public authority or inability to obtain necessary licenses or permits.
!!othing herein shall be construed so as to require a Party to settle any strike or labor dispute in which it may be involved. Any Party which is uneble to fulfill any obligations by reason of uncontrollable forces shall exercise due diligence to remove such inability with all reasonable dispatch.
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i ARTICLE 24 Liability l 24.01 All claims arising out of any bodily injury, death or dnages to property or business of third persons (othet than customers, as
- urh, of any of the Parties and other than claims covered by Sections 4.08 an.14.09) arising because of operations under this Agreement caused or sus-tained on the system of a Party (the Defending Party) shall be defended or in its discretion settled by such Party. In the event any action on any such claim is brought against any other Party, such other Party shall promptly o stify the Defending Party in writing, and the Defending Party shall be entitled to and shall take over and direct the defense and disposition of the case. Any amounts paid by way of settlement or in satisfaction of any judsment and all expenses associated with such defense or settlement shall b e the responsibility of the Defending Party. The provisions of this Sec-iios do not apply to claims of the employees of any Party under any workers!
campensation law, for which the employing Party shall be responsible. 24.02 Each Party hereby waives any and all claims it say have gainst any other Party arising from negligence or other fault of another P arty in connection with operations under this Agreement, except as other-vise provided in Section 8.03. ( l
IN WITNESS WHEREOF, the Parties hereto have caused this Agree-s*.at to be duly executed effective as of the first day of September 198d. THE CLEVELAND ELECTRIC ILLUMINATING C0HEANY By s/ Robert M. Ginn Title President DUQUESNE LIGHT COMPANY By s/ John M. Arthur Chairman of the Board Title and Chief Executive Officer ( OHIO EDISON COMPANY By s/ D. W. Tschappat Title Executive Vice President PENNSYLVANIA POWER COMPANY By s/ Ray E. Senunter Title President THE TOLEDO EDISON COMPANY By s/ J. P. Williamson Chairman of the Board f' Title and Chief Executive Officer
CAPCO BASIC OPERATING AGREDfENT SCHEDULE & CAPCO BACK-UP POWER Section 1 - Applicability 1.1 This Schedule A is applicable to CAPCO Back-Up Power transactions usong the Parties pursuant to the provisions of Article 6 of the CAPCO Basic Operating Agreement ('.' Agreement'!). pcction 2 - Tern 2.1 The provisions of this Schedule A relating to CAPC0 Systes Back-Up Tower shall terminate on August 31, 1982, unless extended pursuant to the agreement of the Parties.
*cetion 3 - Compensation for CAPCO Back-Up Power 3.1 Demand Charse The demand charge shall be calculated on a daily basis for the net mount. of CAPCO Back-Up Power reserved at the rate of $110 per mW per day, plus f<>r each megawatt of power that is purchased by a supplying Party from a Party er a non-CAPC0 party system to provide CAPC0 Back-Up Power the excess demand charge, if any, of the amount paid therefor by the supplying Party over such de- . m.md charge. If at any time during a day a supplying Party is unable to provide
(
- 41 cr any portion of the capacity reserved, the demand charge for the
. apacity not provided will be cancelled for that day.
Supplying Parties will communicate to the Office significant changes in estimated energy costs occurring during the day. A receiving Party shall aave the right to cancel all or any part of the balance of the daily reservation rhich will include the cancellation of the daily demand charge for the capacity cancelled, if the supplying Party's estimated Out-Of-Pocket Costs for energy increase beyond limits established by the Operating Committee from the estimate which was used as the basis for the reservation. In the event the total energy cost of a supplying Party for a par-ticular day exceeded the total energy cost quoted by such Party for that day [ bryond limits established by the Operating Committee, such Party!s demand ch::rge for that day shall not be payable. 3.2 Operating Charge CAPCO Back-Up Power shall be compensated for by the payment of tue Out-Of-Pocket Cost of providing the operat'ng capacity or the operating capacity and energy; plus 107, of the Out-Of-Pocket Cost or $2.00 per nW-hr, whichever is less, Ier CAPCO Back-Up Power provided from the supplying CEI, DL and OE systems; and $2.00 per nW-hr for CAPCO Back-Up Power provided from the supplying TE system; plus
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$1.00 per nW-hr for CAPCO Back-Up Power purchased from a Party or a non-CAPCO party system.
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CAPCO BASIC OPERATING AGREEMENT SCHEDULE B SHORT TERM POWER
.eetion 2 1 - Services to be Rendered Any Party may arrange to reserve from another Party for periods of one or
- t. ore days or weeks Short Term Power whenever, in the sole judgment of the Party requested to supply the same, such Short. Term Power is available. As used herein, the tern !! week!' shall mean any seven consecutive days.
1.1 Prior to each reservation of Short Term Power, the number of nega-watts to be reserved and the period of the reservation shall be determined by ( the Parties to the transaction. Such determination shall be confirmed in writing. If during such period conditions arise that could not have been rtasonably foreseen at the time of reservation and cause the reservation to ha ourdensome to the supplying Party, such Party may by oral or written notice te the receiving Party, reduce the number of megawatts to be reserved by such amount and for such times as it shall specify in such notice. 1.2 During each period that Short Term Power has been reserved, the srpplying Party shall upon call provide Short Tern Operating Capacity up to sad including the number of megawatts then reserved and deliver Short Tern Energy to the receiving Party, as scheduled by the receiving Party, in an amount during each hour up to and including the number of megawatts of Short Iers Operating Capacity then being provided.
1 C- ..e_: tion 2 - Compensation 2.1 The receiving Party shall pay the supplying Party: 2.11 For any week that Short Term Power is reserved, a demand charge of sits 0 per nW reserved for that week, less one-sixth of said $850 per mW of reluction for each day (other than Sunday) during any part of which the amount e.f such Short Term Power is reduced by the supplying Party; or for any period Jess than a week but not less than a day that Short Term Power is reserved, a demand charge of $150 per nW per day, less $150 per mW of reduction for each diy during any part of which the amount of such Short Term Power is reduced by the supplying Party; plus ( 2.12 For each megawatt of the reserved Short Term Power that is purchased by the supplying Party from a non-CAPCO party system, the excess, if any, of the amount paid therefor by the supplying Party over the demand charge therefor under St.bsection 2.11 above (or, if such amount is less than such demand charge, minus the deficiency); plus 2.13 The supplying Party's Out-Of-Pocket Cost of providing operating espacity or operating capacity and energy; plus 10% of the Out-Of-Pocket Cost of Short Term Power provided from the supplying Party!s system; plus
$1.00 per nW-hr for Short Term Power purchased from a Party or a non-CAPCO
( party system.
( CAPCO BASIC OPERATING AGREEMENT j SCHEDULE C NON-DISPLACEMENT POWEk Section 1 - Services to be Rendered 1.1 Transactions not specifically provided for under other Schedules may be mutually advantageous and may be arranged between Parties when one Party has eperating capacity and/or energy it is willing to make available to another Party rs Non-Displacement Power. Such transactions shall be arranged in advance and shall specify the amount of operating capacity to be provided, if any, and the haurs it is to be provided. Energy to be delivered under this Schedule shall be ( as scheduled by the receiving Party. Cection 2 - Compensation 2.1 Non-Displacement Power shall be compensated for by return-in-kind or at. the option of the supplying Pa:,ty by payment of the Out-of-Pocket Cost of providing operating capacity or operating capacity and energy, plus any dauand charge paid to a non-CAPC0 party system for power delivered hereunder; plus 107, of the Out-Of-Pocket Cost for Non-Displacement Power provided from the s.pplying Party's system; plus
$1.00 per mW-br for Non-Displacement Power purchased from a Party or a non-CAPCO party system.
l I l CAPCO BASIC OPERATING AGREEMENT SCHEDULE D ECONOMY POWER Section 1 - Services to be Rendered 1.1 Economy Operatina Capacity Any Party may arrange to purchase from any other Party Economy (perating Capacity whenever, in the sole judgment of the Party requested to provide the same, such Economy Operating Capacity can be made available. Erior to its being made available, the amount of Economy Operating Capacity to be provided, the period during which it is to be provided, and the charge therefor shall be determined by the Parties to the transaction. The charge agreed to shall not be subject to later review or adjustment. Economy Operating Capacity may also be arranged to be obtained from or delivered to non-CAPC0 party systems interconnected with a Party. 1.2 Economy 's I Any Party may arrange to purchase from any other Party Economy E;ergy whenever it is possible to effect a saving thereby and, in the sole judgment of the Party requested to supply the same, such Economy Energy is available. Prior to each delivery of Economy Energy, the amount and time of dalivery and the charge therefor shall be determined by the Parties to the. transaction. The charge agreed to shall not be subject to later review or h adjustment. Economy Energy may also be arranged to be obtained from or delivered to non-CAPCO party systems interconnected with a Party. l l l
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.iection 2 - Discontinuance of Services l
2.1 Service being provided under this Schedule may be discontinued at ar.y time provided, however, that a Party making available Economy Operating Capacity shall allow the other Party a reasonable opportunity to restore its
>wn operating capacity or sake other arrangements before discontinuing such reonomy Operating Capacity; and provided further that the receiving Party shall be obligated to pay to the supplying Party an amount not less than the Out-Of-Pocket Cost of the supplying Party.
S_ep ion 3 - Compensation ( 3.1 Economy Operating Capacity The charge for Economy Operating Capacity shall be based on the principle that the Party purchasing it shall pay the Out-Of-Pocket Cost of providing it, and that the resulting savings to such Party shall be shared equally by the supplying and receiving Parties. When Economy Operating Capa-c.ty is obtained from or delivered to non-CAPC0 party systems interconnected wth a Party, payments shall be based on the Out-0f-Pocket Cost of supply-ing the Economy Operating Capacity and an allocation of the gross savings which are defined as the difference between (1) what the Out-Of-Pocket Costs of the receiving Party or system would have been to supply such Economy Operating Capacity, and (2) the Out-Of-Pocket Cost of the supplying Party or system p;oviding the Economy Operating Capacity. ( )
( 3.11 Each Party or system participating in the transaction other than cha supplying and receiving Parties or systems, shall be paid (a) its cost of
- urchasing the Economy Operating Capacity supplied, plus (b) 15% of the gross strings.
3.12 The supplying Party or system shall be paid its Out-of-Pocket Cost
.of providing the Economy Operating Capacity, plus one-half of the gross savings rassining after deducting payments ande under Subsection 3.11 (b).
3.2 Economy Energy The charge for Economy Energy shall be based on the principle that the Party purchasing it shall pay the Out-Of-Pocket Cost of providing it and that the resulting savings to such Party shall be shared equally by the supply-ing and receiving Partits. When Economy Energy is obtained from or delivered to non-CAPCO party systems interconnected with a Party, payments shall be based on the Out-Of-Pocket Cost of supplying the Economy Energy and an alloca-tion of the gross savings which are defined as the difference between (1) what che Out-Of-Pocket Costs of the receiving Party or system would have been to generate such Economy Energy, and (2) the Out-of-Pocket Cost of the supplying Party or system providing the Econosy Energy. 3.21 Each Party or system participating in the transaction other than the sapplying and receiving Parties or systems, shall be paid (a) its cost of pur-chasing the Economy Energy supplied, plus (b) its cost of additional transmission 1isses incurred, plus (c) 15% of the gross savings remaining after deducting all
r___ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _. . uth payments for transmission losses, if any. The incremental or decremental tr:nsmission losses incurred on the system of any other Party resulting from
'ne transmission of such energy shall be banked.
3.22 The supplying Party or system shall be paid its Out-Of-Pocket Cost of providing the Economy Energy, plus one-half of the gross savings remaining after eeducting all payments made under Subsections 3.21 (b) and (c). (
CAPCO BASIC OPERATING AGREEMENT SCHEDULE E UNIT POWER [4milability This Schedule is available to a Party (" receiving Party") which has agreed with another Party (" supplying Party") to purchase for a specified period of time a specified amount of capacity out of the portion of a particular CAPCO Unft owned by the supplying Party. Section 1 - Services to be Rendered ( 1.1 The amount of capacity purchased by a receiving Party shall be expressed as a fraction of the Unit's Net Demonstrated Capability of which the numerator is the receiving Party's entitlement in NW as purchased and the denominator is the Unit's Net Demonstrated Capability in NW at the time cf the purchase. Unless otherwise agreed by the Parties to the transaction, such fraction shall remain the same netwithstanding any redetermination of the Unit's Net Demonstrated Capability. The supplying Party shall be obli-gited to provide and the receiving Party shall be entitled to receive in any hout upon request by the receiving Party up to an amount of capacity and energy equal to the Unit's expected capability for that hour multiplied by such fraction. 1.2 In the event the receiving Party schedules less than its full entitle-l' ment, the balance of its entitlement shall reesin as unloaded capacity available to it.
1.3 At any time when the Unit is operated at minimum net generation re-qaired for safe operation of the Unit, each receiving Party shall be obligated to schedule an amount of energy equal to the Unit's minimum met safe generation for the hour multiplied by the fraction determined in Subsection 1.1; provided
.hst, if any Party having an entitlement shall schedule more than its percentage eatitlement of such minimum net safe generation, the other Party or Parties shall be obligated to schedule an amount of energy not less than the balance of such minimum net safe generation in proportion to its percentage entitlement in the Unit.
1.4 The amount of capacity and energy scheduled under Subsections 1.1, 1.2 and 1.3 above, subject to adjustment for proportionate use of all plant auxiliary [ power assignable to the operation of the Unit, and adjusted for a proportionate share of the generation step-up transformer losses if the metering is located at the low voltage terminals, shall constitute scheduled billing values (net) as of the Unit's generator transformer high voltage terminals. The supplying Party small schedule for delivery from its system, an amount of energy equal to the energy billing value less the increase, or plus the decrease, as the case may be, in electrical losses, incurred on the system of the supplying Party resulting from the transmission of such energy. The receiving Party shall schedule for receipt into its system an equivalent amount of energy to that scheduled for delivery by the supplying Party. The Icsaes incurred on the system of any P.irty other than the supplying or receiving Parties resulting from the trans-missien of such energy shall be banked. Any such other Party so affected shall schedule for delivery from its system the decrease in losses it incurred or shall schedule for receipt into its system the increase in losses it in-curred in accordance with rules and procedures established by the Operating
( oausittee. Electrical losses shall be determined in accordance with rules and procedures established by the Operating Committee.
'iection 2 - Adjustments 2.1 If the supplying Party's records indicate that the receiving Party was entitled to schedule (or was obligated to schedule) values less than, or more than those determined pursuant to Section 1 above for any extended period of time, adjustments in future scheduling will be made by agreement of the Parties to the cransaction to compensate for such differences, jection 3 - Auxiliary Power for Maintenance
( 3.1 During the period of the transaction, the receiving Party shall be obligated to the supplying Party for maintenance auxiliary energy. 3.2 The amount of maintenance auxiliary energy obligation shall be a l 1 figure in mWh equal to the total auxiliary power used by the Unit's auxiliary eqi'ipment when the Unit is off for maintenance multiplied by the fraction de-termined pursuant to Subsection 1.1. 3.3 Such obligation for maintenance auxiliary energy shall be discharged by reimbursement to the operating Owner at the operating Owner's system average cost (including net purchase power costs) for supplying net energy for load during the current calendar month, adjusted to exclude the output and cost during the current calendar month of the Unit to which such maintenance ( auxiliary energy was supplied. In the event actual costs are not available,
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.scinated costs will be used for the current month's calculations and an j idjustment, based upon the deviation of estimated actual costs will be made i l
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.n the next succeeding month.
I 1ection 4 - Compensation ' 4.1 The receiving Party shall compensate the supplying Party for Operation enu Maintenance costs, monthly, on a basis consistent with the method used to compensate the operating Owner by nonoperating Owners. 4.2 Additionally, the receiving Party shall pay the supplying Party, scathly, Fixed Charges which shall cover Return on Investment, Depreciation and ( ltcome Tax. In the event that a CAPCO Unit is placed in comunercial operation at a capability which is not within a reasonable range of the expected Net Demonstrated Capability, a proportional amount of the capital costs of such Unit will be re-tsined in FERC Account 107, Construction Work in Progress, and will continue ti accrue allowance for funds used during construction. Such portion shall be excluded from the determination of Fixed Charges payable by the receiving Party. In the event that the final Net Demonstrated Capability of a Unit proves to b.e different from the original expected Net Demonstrated Capability, the re-scining portion of the capital costs shall be transferred to FERC Account 101, Electric Plant in Service, and all of the capital costs shall then be in-ciuded in the determination of Fixed Charges payable by the receiving Party. { Thr. operating Owner shall have the responsibility for determining the timing and level of the final Net Demonstrated Capability.
( In any event, the amount of investment in FERC Account 101, Electric slant in Service, shall be the basis for determining Fixed Charges to be paid. 4.3 The supplying Party shall also bill the receiving Party for its share r1 property, franchise, business or other taxes and insurance applicable to its share of the Unit, based on the fraction determined pursuant te Subsection 1.1 syecifically identifying these items on the invoice. To the extent that such texes and insurance are charged to the operating expenses of the Unit, because ic=is impractical or inequitable to segregate them, they will be billed as
- $ art of the normal operating expense of the Unit. ,
s 4.4 Specific charges applicable to each' transaction under this Schedule
' from a skrticular Unit,vupplying the capacity and entrgy shall be set forth
( in appropriate Appendicts to this Schedule,,ror it separate agreements to be at*. ached to or refe ed t'o in appropriate' Appecdices to this Schedule. ( l
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SM-7 (Page 1 of 22) {PPENDIX 1 TO SCHENLE E i r' hares Atmlicable to Transmettons From W.* H. Samis tinit No. 7 Pursuant to Schedule E This Appendix provides for specific charges applicable to transactions cade fros W. E. Sasmis Unit No. 7 pursuant to Schedule E. Costs will be shared on a basis equivalent to that of the joint owners. Interia short ters sales a6xvements signed by the parties involved have provided the basis for the billing to date which wi.21 be adjusted based on this Appendix. The fo11sving are the components of the costs to be included. A. Fixed Costs of Invested CaDital
- 1. It is expected that sales out of production units will occur Prad-inantly over a relatively short tiam period in the ear 3y part af the unit's 21fe. However, this Appendiz.dsmolsps a consistent basis which is applicable throughout the life cycle.
- 2. Amortisation and tax calculations saw based on the following:
Amortisation Period 35 Years (h20 Months) IIDB Tax Life 28 Years (336 months) Estimated Salvage Rate Fossil Puni Flsnt -51, Nuclear Fuel Flant -101, Accounting Treatment Flow Through 3 IIDs tax depreciation is assumed, with switch to straight line method effective th3 first month in which the straight line re -iain: life depreciation exceeds IIDB depreciation, with
aK-7 (Pege 2 of 22) remaining life stretched out in the straight line calculations ( to extend to the end of the book amortization period. The switch i occurs in the 222nd month for fossil fuel production plant, and in the 199th month for nuclear fusi plant. 4 All fixed charges are on a month-to-month declining basis. The investment base from which fixed charges are developed shall be the CAPCO investment basis as defined in the accounting and Procedure haual under Procedures for Discharging Investment Besponsibility. 5 The monthly finance charge rate applicable to all additions from the inservice date through the last month of the calendar year in which the construction job order is closed out shall be one-twelfth the annual rate calculated as the weighted aversge of the finance charge rates applicable in the calendar years over which construction expenditures are incurred, using as weights the dollars expended in the respective years. All expenditures to the closing of the job order are to be included, using the best estimate available at the inservice date.
- 6. The finance charge rate for ordinary additions in years subsequent to the calendar year in which the construction job order was closed out'shall be the rate defined in the Accounting and I l
Procedure Manual as the rate applicab3e to expenditures in the I i year in question. Only in the case of major capital additions mentioned in paragraph 8 will a weighted average finance charge as described in paragraph 5 apply. ( l
SM-7 (page 3 of 22)
- 7. Amortization and other charges and adjustments shau be bined each month. Each month's additions to plant in service shan constitute a vintage investment. However, in order to simplify the bining process, the monthly vintages of any particular a=1ad=* year may be combined into a composite vintage, either on an on-going basis or at the end of the calendar year, providing the same bill results.
Since finance charge rates an recalculated each year, vintages of different calendar years will not be composited.
- 8. The tax plant ratio to amortizable plant (CAPCO investment basis) shall be established from data for the total project as estimated at the inservice date, as described in pangraph 5 above. This ratio win be used in developing fixed charge rates for the initial placements and all subsequent additions; except that in the case of major capital additions, at seller's option and with buyers'
( concurrence, a coupletely new vintage any be developed and the fixed charge factor recalculated using the new tax plant ratio and other pertinent data as appropriate. 9 When a production unit, or a major capital addition such as described in paragnph 8, is placed in commercial service the first fixed charge billing shall begin effective with the inservice date. For subsequent month-to-month additions ttg bining shall begin with the first full calendar month after the addition is unde.
- 10. Where sales are initiated oct of an existing production facility to a new buyer, a single-vintage CAPCV investment be. sis any be calculated, with an appropriate adjustment for depreciation incurred to date. The amortization component of the fixed charge factor will be'ealculated on the basis of r = ining life of the original
(, amortization period, or by mutual agreement.
sN-7 (Page 4 of 22)
- 11. The specific fixed charge rate for it. H. Sommis Unit No. 7 is l(
I( developed in !.72hibit A.
- 3. Operstina and Maintenance Costs
- 1. The methods specified in the attached Exhibit 3 shall be used to allocate all costs, including overheads directly or indirectly applicable to the operation and maintenance of the operating company's ownership in such unit between it and the Purchaser (s).
- 2. The operating company will prepare, revise from ties to time as ayy.vyriate and furnish to the Purchaser (s) an annual estimate of the amount to be billed by months (a) for the cost of energy during the term of the purchase from a unit, and (b) any other costs which shall accrue during this period. The Opersting W y will furnish any reasonable request for estimates for longer periods if required by the Purchasers.
- 3. The operating company will maintsin the records used in the determination of the Purchaser (s) bill in order that the Purchaser (s) and their independent auditors shall have access at all reasonable times to such records and the operating company will furnish copies of such records as sequested. The operating company shall preserve and maintain the origint.ls of such records for at least such periods of time as the Purchaser (s) may request, having in mind the requirements of regulatory authorities having jurisdiction, and the policies and practices of the parties with respect to the retention of recceds.
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1 SM-7 (Page 5 of 22) i 4 The cost of preparing, preserving and ==Hng copies of such budgets, records and accounts shall be borne by the companies in proportion to their respective capacity enti+1ammats, except that any costs incurred at the special request of the Purebaser(s) shall be borne by them.
- 5. The operating company shall have special audits conducted with respect to the matters p4ovided for in this Appendix, either internal.ly or by independent auditors, according to such programs and procedures as agned to be necessary to conform to the auditing requirements of each Company, and shall furnish copics of the reports of such audits to the Purebaser(s). The cost of asking such audits, ia* M an any participation by the auditors of the Purchaser (s) agreed to be desirable and necessary, shall be shared by the Cvaies in relation to the
( curnnt capacity entitlement ratio. The Purchaser (a, ay, at their own expense, make such further audits, using their internal or independent auditors or both, as it any be dessed desirable.
- 6. If requested by the Purchaser (s), the operating company will make such examinations, analyses, or studies as would go to support the reasonableness of the specific costs so allocated, or provide a basis for modification to achieve such Masonableness with respect to either the specific or the indirect cost allocations. Sharable costs which are incurn d by the Purenaser(s) shall be accumulated and billed on a direct charge basis from specific r* cords or reasonable estimates, with applicable additives as agreed upon by the Companies.
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SM-7 (page 6 of 22) { 7 Except as otherwise provided herein, the accountinc methods and practices norna11y in use at the time by each of the Companies I ' in determining and assigning Operating and Maintenance costs, generally, are to be used by such Company for the purposes of this Appendix unless otherwise agreed, provided such methods and practices are consistent with sound accounting practices.
- 8. The operating company will bill the Purchaser (s) for its share of property, freschise, business or other taxes applicable to thalv shan of the unit, specifically identifying these items on the invoice when such taxes are payable by the operating company.
To the extent that such taxes are charged to the operating expenses of the Unit, because it is impractical or inequitable { to segregate them, they will be billed as part of the normal oyenting expense of the Unit. 9 As soon as possible after the close of each calendar month, preferably on or before the 8th working day of the following month, the operating company shall advise the Purchaser (s) of its evWdianate share of estimated operating expenses, fixed charges, displacement training costs, and working capital for the precading month.
- 10. As soon as possible after the close of each calendar month, preferably on or before the 25th of the following month, the operating company shall prepare and deliver an invoice to the purchaser for its share of actual costs for the preceding month. The amount billed will be due and paysble upon receipt
( 1__ -. . .
SM-7 (page 7 of 22) of invoice and will be subject to a late payment charge if not received within 15 days from date. of invoice. C. '4crkine Capital It is recog;nized that the operating company undertakes certain obligations to provide editures in advance of compensation by the purchasers of capacity and energy. These purchases includa but any not be lic.ited to payroll, fuel and material and supplies purchases; I and coal and material and supplies inventories. A reasonable allowance for this investment in working capital funds shall be considend a sharable cost to be compensated for as set out in detail in Exhibit C. D. Displacement Training Costs The CAPC0 fvies have agreed that the costs which an ( operating company will incur in training personnel at existing stations in order to be able to transfer experienced personnel to a new CAPCO genersiing unit should be shared by the joint owners. Purebasers of Capacity and Energy shall also share in these costs.
- 1. For each new CAPC0 unit, the cost basis of $1/EW of the installed capacity is determined to be a reasonable estimate of the present-day cost which a company v411 incur within its existing plants as a result of assigning experienced compaag personnel to a new CAPCO generating unit. Installed capacity for this purpose is defined as the Net Deacastrated Capability of the CAPCO generating unit.
as-7 (Page 8 of 22) ( 2. It is recognized that these costs will increase as labor costs increase. Therefore, this cost detert ination factor of
$L/W shall be subject to escalation for units installed after Davis-Besse No.1 based on an index of the composite labor costs of CAPCO Companies as agreed to Pt the CAPCC Accounting and Finance Cornittee using 1972 as the base year equaling 100.0.
The index to be applied shall be that calculated for the period two years prior to the actual f?nervice date for fossil-fired generating units and for the per!'A three years prior to the actual inservice date for nueva 'mits . 3 The purchasers of Capacity read E , w shall share in these costs for the periods they are u sly Anamountof1/420ofthe cost basis for each W of the ir.c..;.ing company's capacity entitlement sha.E be included ja t'* 7thly billing. ( '
- 4. The cost basis provided for e. . - i1.be shown in Ihchibit D.
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SM-7 (Page 9 of 22) SALES CF CAPACITY AND DEJCY FROM BASE LQAD UNITS TO RJECHASERS CAPCO UNIT No.1 (W. E. SMOES UEIT No. 7) EXHIBIT A FIXED COSTS OF INVESTED CAPITAL The monthly fixed charge for a vintage addition shall be calculated as the algebraic sum of the following components: A. Ascrtization.1/ The product of 0.0025 unaltiplied by the. gross CAPCO investment base exclusive of land.
- 3. Finance Charge. M The product of 0.00788333 maltiplied by the not unamortized CAPCO investment base as of the beginning of the month being billed.
C. Cross Income Tax. M The product of 0.00419231 mitiplied by the net unamortized CAPCO investment base as of the beginnir4 of the month being billed. D. Income Tax Adjustment. M The product of (1) the difference obtained by subtracting (a) .00$37054 x 0 99404762M (where M is the number of amortization months elapsed prior to the month (. being billed), if the ::enth being billed is prior to the 222nd month of service, or (b) .001k3858, if the month being billed 15 the 222nd month or later, from (c) 3.0025, smaltiplied by (II) 0 92307692, and the result multiplied by (III) the vintage gross CAPCO investaant base exclusive of land. Note g The monthly amortization rate (depreciable property only) is based on a 420 month amortization period and a negative 55 salvage rate. 1.05/420 = 0.0025 Mote 2] ine monthly finance charce rate applicable to Saands No. 7 facilities placed in service in 1971 is:
.09M/12 = .00788333 Where .0946 is the weighted average of the annual finance charge rates applicable in the calendar years ever which the facility was constmeted, using the dollars expanded in the respective years as weights:
Amount Per Cent of Aeplicable Component Retum Rate (c) Year, Expended (*) Total Bonds Preferred Common Total 196') 1,770,041(b) 3 332% 2.80 0.57 5.13 8.50 1k,784,374 0.58 9 00 (. 1 969 1970 22,107,739 27.827% 41.611% 3 22 k.07 0.69 5 20 k.74 9 50 1971 1k,k67.246 27.230% k. 0.70 h.k0 10.00 53,129,400 100.000% .0 M U9 W
38-7 (Page 10 of ?2) ( - 1 (a) Ohio Edison portion only
'b) Includes $63,629 expended in 1967 f,c) Annual values as derived frca preceding calendar year data. [
composite values derived using annual expenditures as weights. 1 Note}/ The monthly gross income tax charge rate is the product of 1/12 x .0545 nailtiplied by the federal income tax rate and divided by - the complement of the income tax rate; where .0545 is the total equity component of the annual finance charge rate: i fx .0545 x d = .00h19231 i Inte kj The income tax adjustnent reruits from the difference be*. ween j amortization and tax depreciation. DDB depreciation is tau d on i a 336 month tax life. The undepreciated portion of the orie;M : CAPCO ta:: basis (whose ratio to total CAPCO basis in this case ! is .902251 (p) under DDB depreciation after a period of M months l 1s the product of the original CAPCO tax basis antitiplied by the j net tax base factor. ; 2 2 902251 x (1- 33o)M , where 1 - 333 = 0 99hok762 I ( l The monthly factor for tax depreciation under DDB depreciation is f the product of the DDB depreciation rate smaltiplied by the net ! (undepreciated) tax basis (ac of the besianias of the computation j month): , x 902251 x- (1 - ) = .00537054 x 099k047M i The income tax adjustment factor is the product of the difference between the amortization factor and the DDB cepreciation factor, j nalltiplied by the federal income tax rate and divided by the j complement of the income tax rate. l (0.0025 .00537054 x 0 99h04762") x S, or i 52 l M
, (0.0025 .00537054 x 0 9940472 ) x 0 92307692 !
i Switch to straight line tax depreciation (with stretch-out of I straight line tax life to the end of the amortization period. occurs after the end of the 221st month (r===4a4ag life = 199 , months). ! After switchover the monthly tax depreciation is the product of the reciprocal of the remaining life at switchover (199 months) i multiplied by the a16cbraic difference between net tax basis and l total expected net salvage to be realized: i { ..
- i x .902251 x ( 05) = .001h3858 i 902251 x (1 - h )221
l
!BE-7 (Page 11 of 22) k Nota y Development of CAPC0 Tax Plant Batio Adjustments to CAPC0 Basis
$53,129,k00 (1) Total Imestment Per Books '
(2) Payroll Taxes and Pension Costs Capitalized per Books but Expensed for Tax Purposes $1h0,200 (3) 48(,of Line (2) (FF.300) 1,838,100 (4) Investment Tax Cmdit Applicable 51,224,000 (5) Ad.iusted CAPC0 Investment Basis Adjustment to CAPCO Income Tax Basis (25,300) ( (6) Iand (7) Interest During Constmetion (4,931,700) (8) Balance of Paymil Taxes and Pension Costs Capitalized per Books but Expensed for Tax Purposes: $131,462 - 463,102 (72,900) (9) Adjusted CAPCO Income Tax Basis b6,194,100 (10) Adjusted CAPCO Investment Basis Less Land 51,198,700 (12 ) Ratio of Adjusted CAPCO Income Tax Basis to Adjusted CAPCO Amortizable Investment Basis 902251 (
!N-7 (Page M of 22) 1 SALES OF CAPACITY AID EN fCY F1013ASE IDAD UNITS TO RHCHASERS ICIDIT D (CAR;0 UNIT NO.1)
W. H. SAMES UNIT 50. 7 Section I Introduction The amount of energy scheduled fron entitlements, subject to ad'ust=e.- for proportionate use of au plant s'.uciliary power assignable to the operation of the Unit, shall constitute a scheduled (billing) MiH value (net) as of the Unit's generstor transfomer low voltace terminals. OE shall schedule for delivery from its system, and the Purchaser shall schedule for receipt into its system, an amount of energy equal to such bining value less the increase, or plus the decrease, in electrical losses as determined by the Pi m 43 Comuzittee under terms of the CAPC0 Transmission Facilities ( Agreement, as the esse may be, incurred on its system resulting from the transmission of such energy, including losses on the Unit's step-up transformer resulting from the tran==4=sion of such energy. Section II Accounti.v Concepts The basis for allaenting the Operation and Maintenance Costs of the Saannis Unit No. 7 between the joint owners is set forth in Exhibit A of the Opersting Agreement for this unit. This Exhibit is designed to determine the portion of the Ohio Edison Company cost which win be billed to the Purchaser. The costs to be bined to the Purchaser will be segregated as to those that are dinctly identified with the -purchaser and to those that are allocated either on an investment responsibility or a coal consumed basis. 1 The codes for these segregations are defined at the end of Section III.
IM-7 (Page 13 of 22) l Section II Accountitu- Concerts (continued) In addition to the direct costs for operating and maint*4aine the unit, OE will bill the Purchaser for an appropriate portion of indirect overheads and taxes other thir neoe.e ta:tes as defined in Section V. Section III Allocation of Costs The operation at.d maintenance costs identified by FPC account number are assigned to the Purchaser either directly or on the basis of i appropriate allocation codes as set forth in the following table. (
l SM-7 (Page 14 of 22) ( OE's Cost to be Direct Allocated to Purchaser Cost To Allocation Codes Egg Description Purchaser 0(IR) SY(IR) 500.30 Supervision & Engineering X 501.c0 Fuel
$01.10 Coal X 501.11 011 X X 501.20 Residual Disposal- X 5c2.00 Steam Expenses SC2.10 Labor X lk 2.20 Other X 503.10 Stearn frdother Sources - Cost X 504.10 Steam Transferred - Credits X 505.00 Electric Expenses 505.10 Labor X 5c5.20 Other X 506.00 Misc. Steam Power Expenses
{ 50:. 10 Labor X 506.20 Other X MAI!T"ENANCE ACCCUNTS 510.10 Supervision & Engineering X 511.10 structures X 512.10 Boiler Plant ** X 512.10 Boiler Plant ** X 513.1) Electric Plant X 514.lc Misc. Steam nant X (** See Operatin6 Agreement between cuners Exhibit A for breakdown of 512 Account) OTHER ACCOUNTS 562.10 Operation - Stetien Expense m X 570.10 Maintenance of Station Equi;e.ent
- X
( (+++ Step-Up Transforrer and connection to switch yard only) Direct charges will be cade to the yttrehaser for coal consumed as detemined in ac%rdance with Section IV. I
( ( SM-7 (Page 15 of 22) CODE BASIS O(IR) Invest =ent Responsibility Ratio The portion of OE's Operation and Maintenance to be billed to CII and TE shall be (a) the purchaser's entitlement from the unit (165 W and 90 W, respectively) divided by (b) OE's ovpership
~
interest in the unit rounded to the nearest whole megawatt. CI's rhcample No.1 ownership icterest in the unit shall be the product of the ;re-vailing Het Demonstrated Capability (NDC) of the unit multiplied by OE's percentage ownership (k8.0%) in the unit. Currently the NDC of the Sammis Unit No. 7 is 650 W. 0(IR) = 165 = 165 = 52.88% (CII) 650 x .48 312 0(IR) = 90 = 90 = 28.855 (TE) 650 x .48 312 ( In the event that there is a determination of the Units Net Demon-atrated Capability different then its Initial Net Demonstrated Capability, the fraction above shall be recalculated using the , same numerator and substituting a new denceinator equal to the Unit's ! revised Det Demonstrated Capability. The portion of OE's Operation and Maintenance to be billed to TI shall be (a) the purchaser's entitlement from the unit (80 W) divided by (b) OE's evnership interest in the unit rounded to the Dcample No. 2 nearest whole megavatt. OE's ownership interest in the unit shall be the product of the prevailing Net Demonstrated Capbility (UDC) of the unit multiplied by OE's percentage ownership (L8%) in the unit. Currently the NDC of the Sommis Unit No. 7 is 650 W . 0(IR) = 80 = 80 = 25.6h5 650 x .48 312 In the event thd. there is a determination of the Units Net Demonstratad Capahility different than its Initial Net Demonstrated Capability, the fraction above shall be recalculated using the same numerator and substituting a new denominator equal to the Unit's revised Net Demonstrated Capability. (
SM-7 (Pege 16 of 22) ( l CODE BASIS - (Cont'd) SLISj Coal Allocation Ratio The portion of the cost to charge to a Purchaser (s) during the current month shall be (a) the total tons of coal allocated to the Purchaser (s) for the preceding 12-zonth period determined as set forth .in Section IV divided by (b) the tons of coal charged to OE for the Sa==1s Unit No. 7 for the same 12-month period. Section IV - Tuel In de.ter=ining fuel costs the Purchaser (s) shall be treated in the same manner as sa owner. The tons of coal and the costs thereof shall be allocated in pro-portion to the Stu's consumed to produce the kilowatthours taken by each of those sharing in the output of the unit, taking into account the Stu's consumed during start-ups of T.he unit. OE's share of Btu's used during a start-up (including Stu's which may be supplied by transfers of steam from steam sources otter than that unit's own stess source) and Stu's computed to have been used during periods of synchronized on-line operation of the unit to maintain zero load on the unit (the "Y" intercept, or no load input, of the standard Input / output equation for the unit) shall be allocated among those sharing in ths CE's share of the output of the unit in proportion to their investment respossibilities in the unit during the month for which allocation is being made. Btu's consumed during periods of synchroni:ed on-line operation in excess of those used to maintain zero load on the unit (see preceding statement) shall be allocated each hour in proportion to the net kilowatthours determined to have been tsken frem the unit by each of those sharing in the output of the unit. Section V - Other Extenses For billing of costs to Purchaser (s), labor and material additives at current rater prevailing at OE as adjusted from time to time, shall be added to those labcr and materal ec=ponents of operation and maintenance costs of the Sa= mis Unit No. 7 to which such rates are applicable and shall be shared by the Purch,1sers on the same basis on which the primary labor and material costs are share.1. For billing of cost to Purchaser (s) ad=inistrative and general expenses shall be allocated to the Sa= mis Unit To. 7 on the basis of the composite three-year i movirg average ratio fer OE, calculated at the end of ecch calendar year and to become effective on July 1 of the following rear, in accordance with the fo11erving forzula. ( 1 _ _ ~
l l SM-7 (Page 17 of 22) ( Lal (1+ P/P) + 0a1 (Le-La2) (1 + P/P) + (Oe-Ca2) In which: Lal and Cal = the 3-year suna of direct labor sixpenses and direct other-than-labor expense, respectively charged to the following accounts:
- 1) Account 920, Administrative and general salaries.
- 2) Account 921, Office supplies and expenses.
- 3) Account 922, Administrative expenses tracsfered - Credit.
(1 + p/P) = a cost ratio by means of which those expenses directly associated with payroll (labor additives) any be added to direct labor charges.. p a the 3-year sum of the following labor additives:
- 1) Payroll Taxes Federal 014-Age Bet;efits Federal Unemployment Insurance State Unemployment Insurance
- 2) Workmen's Compensation and/or In, juries and Damages (Payroll related costs only)
- 3) Employee Pensions and Benefits (Account 926) 34 ) Pay for Time Not Worked Exclude any labor additives which are included with the basic labor charges, axamples of which might be " Pay for Time Not Worked" or " Payroll Taxes".
P = the 3-year sum of the total payroll with which the above labor additives are associated. Le and 0, = the 3-year sums of direct labor expense and direct other-than- , labor expense, respectively, charged to all operation and main-tenance expense accounts except Puel (Account 501) for the entire f Company. La2 and Ca2 = the 3-year sums of direct labor expense and direct other-than-labor expense, respectively, enarged all Administrative and General Expense Accounts 920 to 932, inclusive. [' l
%7 (Page 18 of 22)
(
! . w nt, of administrative and general expenses to be allocated to the Purch-ser(s) during a given period shall be the product of the above ratio multiplied by the total operation and maintenance expenses, excluding Fuel (Accc et 501), allocated to the Purchaser (s) for that period.
In ad31 tion the Purchaser (s) shall pay to Ohio Edison, at the times payable by Ohio Edison, a: cunts deter =ined by multiplying (a) the property taxes and any other taxes except Federal Income Tax, payable by CE with respect to the Unit for the periods the Purchaser (s) were involved by (b) the O(IR) ratio for tt.at period involved. Insurance costs'shall also be shared on the basis of tne 0(IR) ratio for the periods the Purchaser (s) are involved. (
SM-7 (Page 19 of 22) O*.LES OF CAPACI"Y A!O I'CTY ."R0!' BASE *,OAD U!!!TS TC ?UrHASIE CAPCO UNIT No.1 (W. H. SA:HIS U::IT no. 7) ErrIntr C Section I - Offsets to Added Working Capital Recuirements A. Diversity of Ownership and Operation The possibility of satisfactory offsets to working capitsi requirements arising from diversity of ownership and operation of production plants was considered. A study of diversity revealed that during the next several years, diversity of ownership and operation would provide only partial, and rather insignificant offsets to working capital requirements. This is due to not only a lack of diversity in terms of capacity, but is also related to the lack of diversity with respect to the type of gen-eration. That is, working capital requirements are not nearly as sign-ificant for owner-operators of nuclear production plants as co= pared. vith the working capital burden associated with a coal-fired station. I'he conclusion of the Economic Studies Subcon=tittee is that offsets ( arising from diversity of ownership are not significant and provide inadequate relief to the owner-operators of coal-fired plants. { B. Diversity Arising from Time-Fixed Payments Time lags associated with the payments of interest charges, cessaan and preferred dividends, inesas taxes and contributions of retained earnings were considered as possible offsets to working capital requirements. It was found that due to the time variability of these charges relative to the time variability of ,pover sales, these lags provided no significant offset to working capital requirements. Section II - Deposit Recuired to Compensate the Operator of a Coal-Fired Productien Unit Added Workine Caoital Reouirements - $ Per MW The following schedules show the amount of deposit that would be required to be placed with the operating company to provide equitable compensation for added working capital requirements during a period of sale. The amounts are for 1972. Deposit Associated with a Nonowner Purchase - 4 Per NW Payroll $ 200 Coal Inventory 3,800 Coal Purchases 900 M&S Inventory 1,000 M&S Purchases 100 Total $6,000 (
SM-7 (Page 20 of 22) (. Detes;t For a Joint Owner (Assuming Joint Ownership of the Coal Pile) - $ Per MW' Payroll $ 200 Csal Purchases 900
.CS Inventory 1,000
- 13 Purchases 100 Tctal $2,200 Depos:.t For a Joint Owner (Assuming Joint Ownership of the Coal Pile and Mt S Ir.ventory) - 4 Per MW' Pa;rroll $ 200 fosi Purchases 900 M4S Purchases 100 Total $1,200
*The Economic Studies Subeceur.ittee suggests joint ownership of M&S inventory at an pisats that contain only CAPC0 units.
eeetio.s III - Method of Compensation jhere arc two methods for ec=pensating operating companies for added verking capital requirements. A fully refundable deposit may be placed with the oper-
- e. ting company in accordance with the above schedules (or as escalated in accordance with Section IV below) during the period of capacity entitlement or the cpaisting company may be compensated by being paid on the basis for the current CAPCO cost of capital with provision for federal income taxes, multiplied by the appropriate deposit schedule from Section II calculated on a me.thly basis.
The met tod of compensation shan be determined by mutual agreement between the two parties to the transaction. In the event that the two parties do not agree on the method of compensation, the operating company shan decide upon the mothed to be used. Sectien IV - Accliestion and Escalation of Deposit Schedules The 1972 deposit schedules shown in Section II are to be applied for 1971, 1972 and 1973 vorking espital compensation. The basis for 197k binings win be the 1972 schedules, escalated two years by the Escalation Task Force of the Account!ng and Finance Committee. Thereafter, escalation vill be calculated annuan) for each component of the deposit schedule by the Escalation Task Force, and furnished to the Accounting and Finance Committee for approval and inclusion in the Accounting and Procedure Manual. The Econocdc Studies Sub- < committee vi n periodically review the deposit schedules, to incorporate more cent operating data. These periodic reviews vill be made as required or every
/ aree yet.rs, whichever comes first. The first such review win take place in \ 976 or sooner if required. (Manual Section 06-10)
su-7 (page 21 of 22) Section V - 9etroactivity
~.he provisions herein shall be retroactive. The basis compensation shall be the annual CAPCC cost of espital including Federal Income Tax, applied to the appropriate deposit schedule in Section II, calculated on a monthly basis. The resulting amounts will then be subject to the short-term carrying caarge rate as provided for in section 05-21 of the Accounting and Procedure
.%nual.
CAPCO COST OF CAPITAL WITE PROVISIQE POR F1;DERAL INCOME TAX CAPC0 COST FEDERAL TOTAL INCLUDING g 0F CAPITAL
- INCOME TAX" FIT 1971 Bonds k.905
/i Preferred 0.70 Common k.k0 Total 10.005 k.715 M 1972 Bonds h.275 Preferred 0.7k Comma L.2k Total 9 255 k.605 M5 1973 Bonds k.135 Preferred 0.90 Common M Total 9.005 h.505 g5
' Pros the CAP 00 Accounting and Procedure Manual, 05-09-01.
The Federal Income Tax factor is:
t TIT = (Preferred + Cosmnon) 1-t Note: 1:a future years as Pennsylvania Plants become operational, a nov ( carrying charge vill be calculated to reflect Pennsylvania Income Taaes.
sN-7(Page22of22) ( SALES cF CAPACITY AND ENEMY FE1 U.GE U:AD tmITS TO NBCHASERS CAPCO UNIT NO.1 (W. II. SA!EIS UNIT NO. 7) EXHIBIT D DISPLACDGET TRAINING COSTS Installed Capacity at CAPCO Unit No.1 (W. H. Sassais No. 7) 650,000 kW ownershin Duquesne Light 202,800 kW Penn.?over 135,200 kW Ohio Edison 312.000 kW 650,000 kW Chio Edison as operating company assumed $312,000 (based on $1/kW) for its share of df zplacement training costs. ( Therefore under the terms of this Appendix Toledo Edisen, Cleveladd Electric Illurainating and Peca Power as purchasers vould share in these costs based on their entitlement fer the period they were involved at the rate of 1/k20 of the cost basis for each 'cilling month. (
l EL-5 (Page 1 of 2k) i ( , i APPriDIX 2 TO SCHE:XJLE E Charges Applicable to Transactions From Eastlake Unit No. 5 Pursuant to Schedule E This Appendix provides for specifi'c charges applicable to transactions
- mde from Eastlake Unit No. 5 pursuant to Schedule E.
Costs will be shared on a basis equivalent to that of the joint owners. Interim short term sales agreements signed by the parties involved have p mvided the basis for the billing to date which will be adjusted based on this Appendiz. The following are the components of the costs to be included. A. Fixed Costs of Invested Capital
- 1. It is expected that sales out of production units will occur preAmiM*"tly oYor a relatively short time period in the early part of the unit's life. However, this ,Wh develope a consis'ent basis which is applicable throughout the life cycle.
- 2. Amortization and tax calculations are based on the following:
Amortization Period 35 Yeare (420 Months) DDB Tax Life 28 Years (336 Months) Estimated Salvage Hate Fossil Fuel Plant -5% Nuclear Fuel Plant -10% Accounting Treatment Flow Through 3 DDB tax depreciation is assumed, with switch to straight line method effective the first month in which the straight line rea=4"4ng life depreciation exceeds DDB depreciation, with (
i l l E -5 (Page 2 of 24) l rs=4a45 life stretched out in the straight line calculations to extend to the end of the book amorti .ation period. The switch occurs in the 222nd nonth for fossil fuel production plant, sad in the 199th month for nuclear fuel plant. 4 All fixed charges are on a month-to-month dec11 Mag basis. The investaant base from which fixed charps are developed shall be the CAPC0 investment basis as defined in the accounting and Procedure Manual under Procedures for Discharging Investment Responsibility.
- 5. The monthly finance charge rate applicable to all additions from the inservice date through the last month of the calendar year in which the construction job order is closed out shall be one-twelfth the annual rate esiculated as the weighted average of the finance charge rates applicable in the calendar years over which
{ construction expenditures are incurred, m ing as weights the dollars expended in the respective years. All expenditures to the closir.g of the job order are to be included, using the best estimate available at the inservice date.
- 6. The finance charge rate for ordinary additions in years subsequent to the calendar year in which the construction job order was closed out shall be the rate defined in the Accounting and Procedure Manual as the rate applicable to expenditures in the year in question. Onlyinthecaseohanjorcapitaladditions mentioned in paragraph 8 will a weighted average finance charge as described in paragraph 5 apply.
1
l 1 1 E!.-5 (Page 3 of 24) l ( 7. Amortization and other char 6es and adjustaants shall be billed each month. Each month's additions to plant in service shall constitute ' a vintage investment. However, in order to simplify the billing
+ process, the monthly vintages of any particular calendar year wey be combined into a composite vintage, either on an on-going basis or at the end of the calendar year, providing the same bill naults.
Since finance charge rates are recalculated each year, vintages of d,fferent calendar years will not be composited. S. The tax plant ratio to amortizable plant (JAPC0 investment basis) shall be established from data for the total project as estiasted. at the inservice date, as described in paragnph 5 above. This ratio will be used in developing fixed charge rates for the initial placements and all subsequent additions; except that in the case ( of anjor capital additions, at seller's option and with buyers' concurrence, a coupletely new vintage may be developed and the fixed charge factor recalculated using the new tax plant ratio and other pertinent data as appropriate. 9 When a production unit, or a major capital addition such as i described in paragraph 8, is placed in conunercial service the first fixed charge billing shall begin effective with the inservice date. For subsequent month-to-month additions the billing shall begin with the first full calendar month after the addition is ande.
- 10. Where sales are initiated out of an existing production facility to 1 a new buyer, a single-vintage CAPCO investment basis any be calculated, with an appropriate adjustaant for depreciation incurred to date. The amortization component of the fixed charge factor will be calculated on the basis of r==4n4ag life of the original amortization period, or by mutual agreement.
I l
7 EL-5 (Page 4 of 2k) (' 11. The specific fixed charge rate for Eastlake Unit No. 5 is developed in Dchibit A.
- 3. Operating and Maintenance Costs
- 1. The methods specified in the attached Exhibit 3 shall be used to allocate all costs, including overheads directly or indirectly applictble to the operation and maintenance of the operating company's ownership in such unit between it and the Purchaser (s).
- 2. The operating company will prepare, revise from time to ti:ne as appropriateandfurnishtothePurchaser(s)anannualestimate of the amount to be billed by months (a) for the cost of energy duri::6 the ters of the purchase from a unit, and (b) any other costs which shall accrue during this period. The Operating Company vill fumish any reasonable request for estimates for longer periods if required by the Purchasers.
3 The operating company will maintain the records used in the determination of the Purchaser (s) bill in order that the Purchaser (s) and their independent auditors aball have access at all reasonable times to such records and the operating company will furnish copies of such records as requested. The operating company shall preserve and maintain the originals of such records for at least such periods of time as the Purchaser (s) may request, having in mind the requirements of regulator / authorities having jurisdiction, and the policies and prsetices of the parties with respect to the retention of records. (
l l L-5 (Page 5 of 2k)
- k. The cost of preparing, preserving and asking copies of such budgets, records and accounts shall be borne by the companies in proportion to their respective capacity entitlements, i
except that any costs incurred at the special request of the Purchaser (s) shall be borne by them.
- 5. The operating company shall have special audits conducted with respect to the matters provided for in this Appendix, either internally or by independent auditors, according to such programs and procedures as agreed to be necessary to conform to the auditing requirements of each Company, and shall furnish copies of the reports of such audits to the Purchaser (s). The cost of making such audits, including any participation by the auditors of the Purchaser (s) agreed to be desirsble and
( necessary, shall be shared by the C & a4es in relation to the current ca;acity entitlement ratio. ThePurchaser(s)may,at their own expense, make such further audits, using their internal or independent auditors or both, as it any be deemed desirable.
- 6. If requested by the Purchaser (s), the operating company will make such araminations, analyses, or studies as would go to support the reasonableness of the specific costs so allocated, or provide a basis for codification to achieve such reasonableness with respect to either the specific or the indirect cost allocations. Sharable costs which are incurred by the Purchaser (s) shall be accumulated and billed on a direct charge basis frc:s specific records or reasonable estimates, with applicable additives as agreed upon by the Companies.
( [ . 1 d
/
.-. - ~ _ _ ___ . _
, l
',1
# 11-5 (Page 6 of 216)
., Y
'. Except as otherwise provided herein, the accounting methods and r practi ey no'rmally ir:.-use at the time by each of the Companies ,
' i !
r
# in determining and assigning OperstinC and hintenance costs, t i'; ?,,
Eenerally, are to be urad by,such Company for the purposes j s 1 of this Appendix unless 'othezvist /agreed, provided such
~
' methodd and practices are consistent with sound accounting i .
practices. /
% . p *
- 8. The operatin6 coxpany will bill the Pt.rchseer(s) fw its share , 3 of property, franchise, businesi or other taxes applicable to ;
i their share of the unit, speifical.ly identii'ying these items on the f invoice when such taxes are payable by the operating company. To the extent that such taxes are chsrged to the operating expenses of the Unit, because it is impractical or. inequitable to secragste them, they will be billed as part of the normal ! ( operating expense of the Unit. 9 As soon as possible after the close of each calendar month, [ preferably on or before the 8th working day of the fol:aring i month, the' operating company shall advise the Purchaser (s) of its proportf maate share of estimated operating expenses, fixed j charges, dispiscament training costs, and working capital for i the preceding :::enth. : l,
- 10. As soon as possible after the close of each calendar month, preferably on or before the 25th of the following month, the i
, operating cop.ny shall prepare and deliver an invoice to the ;
< Purchaser for its share of actual costs for the preceding l I
s menth. The amount billed will be due and payable u ma receipt ; i
E-5 (Page 7 of 2h) ( of invoice and will be subject to a late payment charge if not received within 15 days from date of invoice. l l
- e. Working Capital It is recognized that the operating company undertakes certain obligations to provide expenditures in advance of compensation by the purchasers of capacity and energy. These purchases include but any not be limited to payrell, fuel and material and supplies purchases; and coal and anterial and supplies inventories. A reasonable allowance for this investment in working capital funds shall be considered a sharable cost to be compensated for as set out in detail in Exhibit C.
D. Displacement Training Costs ( The CAPCO Companies have agreed that the costs which an operating company will incur in training personnel at existing stations in order to be able to transfer experienced personnel to a new CAPCO generating unit should be shared by the joint owners. Purchasers of Capacity and Energy shall also share in these Costs.
- 1. For each new CAPCO unit, the cost basis of $1/EW of the installed capacity is determined to be a reasonable estimate of the present-day cost which a company will incur within its existing plants as a result of assigning experienced company personnel to a new CAPCO generating unit. Installed ccpacity for this purpose is defined as the Net Demonstrated Capability of the CAPCO generating unit.
(
l 111-5 (Page 8 of 24) (
- 2. It is recognized that these costs will increase as labor costs increase. Therefore, this cost detazinination factor of
$1/Dr shall be subject to escalation for units installed after Davis-Besse No.1 based on an index of the composite labor costs of CAPCO Companies as agreed to by the CAPCO Accounting and Finance Conmittee using 1CJT2 as the base year equaling 100.0.
The index to be applied shall be that calculated for the period two years prior to the actual inservice date for fossil-fired generating units and for the period threa years prior to the actual inservice date for nuclear units. 3 The purchasers of Capacity and Energy shall share in these costs for the periods they are involved. Anamountof1/420ofthe cost basis for each IGi of the purchasing company's capacity ( entitlement shall be included in the monthly billing.
- 4. The cost basis provided for herein shall be shown in Exhibit D.
l l (
EL-5 (Page 9 cf'2k) SAIZS c' CAPACI?? A**3 E2EY ?.T 3ASE LOAD U: I"S To FEF.*. SORS CAPCo UNIT no. 2 (EASTLAKE U TIT No. 5) ( EXHIBIT A FIIED COSTS OF I::YESTED CAPIIAL l l The scathly fixed charge for a vintage addition shall be calculated as the algebraic sum of.the following ca=ponents: A. Anortization.lj The product of 0.0025 asaltiplied by the gross CAPCC investment base exclusive of land. B. Finance Char;;e. g The product of 0.00801667 mitiplied by the net una:norti:ed CAPCo investment base as of the beginning of the month being billed. C. Gross Inco _e Tex. g The product of 0.004o1538 mitiplied by the net una=ortized CA3Co investment base as of the beginning of the month bein6 billed. D. Income Tax Adjustment. y The product of (I) the difference obtained by suotracting (a) .005h6057 x o.99ho4762M (where M is the number of amortization conths elapsed prior to the month being billed), if the month being billed is prior to the 222nd month of service, or (b) .00146270, if the month being billed is the 222nd month or later, fron (c) 0.0025, mitiplied by (II) o.92307692, and (
- the result mitiplied by (III) the vintage gross CAICO investment base exclusive of land.
Note g The monthly amortization rate (depreciable property only) is based on a 420-couth amortization period and a negative 5% salvage rate.
= 0.ct:5 1.o5/h20 Ilote g The monthly finance charge rate applicable to Eastlake Unit No. 5 facilities placed in service in 1972 is:
.o962/12 = .00801667 Where .o962 is the wei6hted avera6e of the annual finance charge rates applicable in the calendar years over which the facilit/
.was constructed, using the dollars expended in the respective years as weights:
(c) Amount percent Applicable Co. oonent Return Rate Year . Droended(g) of Total Bonds Preferred Co:x:en Total 1968 $2,022,h65 2.6hk% 2.80 0.57 5 13 8.50 1969 3,258,242 k.259% 3 22 0.58 5 20 9 00 17to 21,845,878 28.5604 4.07 o.69 4.74 9 50 1571 33,201,261 43.405% 4 90 o.70 k.bo 10.00~ 1 972 16,16h,046 21.1321. h.27 0.74 k.24
$76,491,592 100.000% 4.40 0.70 4 52 9
(' (a) CEI portion only (b) Includes old ce=non facilities and Ic.nd applier.hle to Eastinke Unit 65 (c) Annual values a: derived fres proceding calenda.r year data. Co.:po:ite values derived using annual expenditures as weiChts.
EL-5 (Page 10 of 24) ( Note g The conthly cross income tax charge rate is the product of 1/12 x .0522 .r:1:1 plied b/ the federal incone tax rata a.d divided by the co.-.plener.t of the inco:se tax rate; where .0522 is the total equity co:nponent of the annual finance charCe rate: 48 = .004o1538 1 *0522 x IF.. x IW Note y The income tax adjustment results frc:s the difference between amortisation and tax depreciation. DDB depreciation is based on a 336-:nonth tax life. The undepreciated portion of the original CAPCO tax basis (# nose ratio to total CAPCO basis in this case is .917375 (g)) under DDB depreciation after a period of M months is the product of the origins 1 CAPC0 tax basis nn.titiplied by the net tax-base factor: M 917375 x (1 - ) Where 1 - y = 0 99404762 The monthly factor for tax depreciation under IDB depreciation is the product of the DDD depreciation rate :=altiplied by the not (undepreciated) tax basis (as of the beginning of this cc:nputation month): x 917373 x (1 - ) =, .005M057 x 0.99404762" ( The incoma tax adjust:ssnt factor is the product of the difference between the acorti ation factor and the DDB depreciation factor, multiplied by the federal incon tax rc.te and divided by the cerna1=~nt of the inco:se tax rate.
. (0.0025 .005M057 x 0994047M) x 52, c:-
(0.0025 .005M057 x 099404Y) x 0 92307692 Swit'ch to st'raiEht line tax depreciation (with stretch-cut of straight-line tax life to the end of the amortization period occurs after the end of the 221st month (re-afrang 31fe = 199
, months).
. After switchover the : monthly tax depreciation is the product of the reciprocal of the recaining life at s'.fitchover (199 conths) antitiplied by the algebraic difference betveen net tax basis and total expected net salva6e to be realized: 1 1 2 .917375 x ( .05) = .001M270 x 917375 x (1 336)221 ;
199 1 (
3:L-5 (Page u of 2k) rote y Development of CAPCO Ts= Flant Ratio ! Adjustments to C'.PCO 3 asis i $76,491,892 (1) Total Investment per Books (2) Payron Taxes, Pensions s.M Other Overheads Capitali:ed per 3oo3: but Depensed for Ts:: Parposes Total = $1,216,332 : (583,839) (3) 48% of Line (2) (2,083,8.50) (4) Investment Tax Credit Applicable (513,310) (5) Depreciation on Old Co=en Facilities (6) Aa,1usted CAmo Investment Basis $T3,310,893 Adjustments to CAPCO Inco.me Tax Basis (212,428) (7) Iand (8) A11ovance for Funds Used During ( Construction (5,407244) i (9) Balance of Payron Taxes, Pensions and Other Overheads Carita11:ed per Books but Depensed for Tax Purposes (632,k93) 52% of Line (2) (10) Adjusted CA.TCO Income Tax Basis $67,058,728 (n ). Adjusted CAPCO Investeent Basis Iass Iand $73,098,465 (12) Ratio of Adjusted CAKO Income Tax Basis to Adjusted Amortizable Investment Basis 917375 (
g.$ (page 12 of 216) OAL*.:S OF CAPACI1T AND ENER1T FRG1 BASE IDAD UNITS TO RTEHASERS 311IBIT B (CAPCOUNITNo.2) EASTIAKE UNIT NO. 5 3ection I Introduction The amount of energy scheduled from entitlements, subject to ad'ustment for proportionate use of all plant auxiliary power assignable to the operation of the Unit, shall constitute a scheduled (billing) W H value (net) as of the Unit's Senerator transfoziner low voltace terminals. CCI shan schedule for delivery from its system, and the Purchaser shall schedule for receipt into its system, an amount of energy equal to such bin ing value less the increase, or plus the decrease, in electrical losses as deterinined by ( the Ph=he Comittee under terms of the CAPCO Transmission Facilities Agreement, as the case may be, incurred on its system resulting from the transmission of such enerEy, including losses on the Unit's step-up transformer resulting from the transmission of such energy. Section II Accounting Concepts, The basis for allocating the Operation and htenance Costs of the Eastlake Unit No. 5 between the joint owners is set forth in Exhibit A of the Operating Agreement for this unit. This Exhibit is desigr.ed to determine the portion of the Cleveland Electric IHuminating Company's (CEI) cost which will be billed to the Purchaser. The costs to be bined to the Purchaser will be segregated as to those that are directly identified with the purchaser and to those that are anocated either on an investment responsibility or a coal consumed basis. The codes for these segregations are defined at the end of Section III. l l
EL-5 (Page 13 of 2k) { Sectier II . Accountire Concepts (continued) In addition to the direct costs for operating and main +=4a4a= the unit, CEI will bill the Purchaser for an appropriate portion of indirect overheads and taxes other than income taxes as defined in Section V. Section III Allocation of Costs The operation and naistenance costs identified by FPC account number are assigned to the Purchaser either directly or on the basis of appropriate allocation codes as set forth in the following table. ( l '(
EL-5 (Page ik of 24) Direct CEI's Costs to be Ducie Allocated to the .Nreae.scr Acceunt To Allocation Codes Purchaser Ol111) SY(I"t) N2.b le OTEAATION ACCOU".TS Supervision and Engineering- X 500 l01 Fuel Direct - See 1 ote 1. X 501
$01-1 Cost of Fuel Consu:.ed X '
Fuel Purchasing and Acccuntinc X 501-2 501-3 Fuel Deli'tery - Railroad into Track Hopper X Fuel Storge X 501 k Ash Disposal X 501-5 X
$01-8 Other Fuel Expense 5C2 Steam Expenses--Boiler Operation 502 See Note 1. X 502-1 Fuel Handling X Pulverized Puel Preparation X 302-2
$02-3 Boiler Apperatus X 502-k Feedwater X 502-5 AJh Handling X'
( $05 Elc.tric Ernenses 505 See Note 1. X Turbo-Generator: X
$05-1
$05-2 Ccutrol & Switching X 506 Misc. Steam Power Expense X
/ \
Et,-5 (Page 15 of. 2k) ( Direct CEI's Coste. to be Basis Allocated to th; .%:naser Actonnt To Allocation Cede.* pambr- Purchaser O(IR) S41R)
" 73T7"*4:C? AC00lL'*S 5' o Supervision and Engineering X
- r. .;.1 Structurec
$11 See Hote 1. I S2 Boiler Plant 532 See Note 1. X
$12-1 Puel Storace, Delivery and Rolling Stoch Equipment X 512-2 Coal nandlins Equipment X 512-3 11111 Ts acrs, l'ill Exhausters and/orForcedDraftFcas X 512-4 Coal Pulveri:crs and Pulveria.e4 Fuel Handling Systea X 512-5 Feedwater Equipment X 512-6 Boilers and Furnaces X 512-7 Ash Handlin, X 512-8 Accessory Steam Plant Equipment X.
513 Electric Plant 513 See note 1. X 513-1 Turbo-cenerator Units X 513-2 Accessory Electric Equipment X 51's Miscellaneous Steam Plant I j _07.D3 ACCOUM"S
$$6 Syster. Control and Load Dispatchin5 (Power Supply) X 557 Other Expenses (Power Supp3y) X
$&: Transmission Station Expenses (Step-Up Transformer and Connection to Switch Yard Only) X 570 Maintenance of Station Equip:.ent (Step-Up Transfor:ter and Connection to Switch Yard Only) X 4
NOTE 1. Charges made to pri:ary a,ecounts (500, 501, 502, etc. ) will include ( distributions fre c?ea-irc accounts for such cost; as non- produe-tive time and plant stores handlin; costs. i
EL-5 (Peg 216 er 24) Direct charges win be made to the Putrebaser for coal consumed as determined in accordance with Section IV , l 03;: BASIS O(IR) Investment Responsibility lhtio The portion of CEI's Operation and Maintenance Erpense to be bined to the purchaser shall be (a) the purchaser's entitlement from the unit (in W) divided by (b) CEI's ownership interest in the unit rounded to the nearest whole megawatt. CEI's ownership interest in the unit shall be the product of the prevailing Net Demonstrated Capability (NDC) of the unit multiplied by CEI's percentage ownership (68.8'f) in the unit. Current 2y the NDC of the Eastlake Unit No. 5 is 650 w. In the event that there is a determination of the Unit's Net Demonstrated Capability different than its Ir:r,ial Net Demonstrated Capability, the fraction above shall be recalculated using the same numerator and substituting a new denaertnator equal to the Units revised Net Demonstrated Capability. If the capacity of the unit is reduced by opere'ing problems, the Purchaser win be entitled to his C(IR) ratio unitiplied by CEI's entitlement of the output of the unit on an hour to hour basis. FY(IR) Coal Allocation Ratio l The portion of the cost to be charged to a P.trehaser durin6 the current month shall be (a) the total tons of coal allocated to the l Purchaser for the preceding 12-month period divided by (b) the tons of coal charged to CEI for the Eastlase Unit No. 5 for the same 12-month period. Prior to the time that this data is available on a ' 12-month basis, available data win be used to determine the ( allocation ratio.
l IL-5 (Page 17 of 2L) Eection IV Fuel In determining fuel costs the Purchaser shall be treated in the same manner as an owner. The fuel cost shall be allocated in proportion to the
?tu's consumed to produce the kilowatt hours taken by each of those sharing, in the output of the unit, taking into account the Stu's consumed during rtart-upe of the unit. Btu usqd durinE a start-up (including Btu which may be supplied by transfers of sten from steam sources other than that unit's own steam source) and Btu computed to have been used during periods of )
s'/nchronired on-line operation of the unit to maintain zero load on the unit (the"Y" intercept,ornoloadinput,ofthestandardInput/Outputequation for the unit) shall be allocated among those sharing in the output of the unit in proportion to their investment responsibilities in the. unit during k tne month for which the allocation is being ande. Btu consumed during periods of synchronized on-line operation in excess of those used to maintain zero load on the unit (see preceding statement) shall be allocated each hour in proportion to the net kilowatt hours determined to have been takan from the unit by each of those sharing in the output of the unit. Section V Other Expenses For billing costs to the Purchaser, labor and material additive costs at current rates prevailing at CEI as ad. justed from time to time shall be added to the labor and material components of operation and maintenance costs of the Eastlake Unit No. 5 to which such rates are applicable and shall be shared by the purchaser on the same basis on which the primary labor and caterial costs are shared. (
EI,-5 (Page 18 of 24) Section V Other Eroenses (continued) n addition, an allocation win be made of other Power Supply Expenses: ( Account 556, system control and Ioad Dispatching costs related to production, and Account 557, other Expenses. These costs attributable to the Eastlake
nit No. 5 shall be anocated to the Purchaser on the "O(IR)" ratio listed in Section III above. Included in Account 557, other Expenses, are such items as insurance premiums and recoveries and other production expenses not directly assignable to the other production accounts. The cost included in Account 557 wi n be identified on the invoice.
For billing costs to the Purchaser, administrative and general expenses shall be allocated to the Eastlake Unit No. 5 on the basis of the three-year sovine average ratio for CEI calculated at the end of each calendar year to l hecome effective on July 1 of the following year in accordance'with the following fornula. Ig1 (1 + p/P) + Oa1 (Le-Ie2) (1 + p/P) + (Oe-Ca2) In which In and Oal = the 3-year sums of direct labor expense and direct other-than-labor expense, respectively charged to the following accounts:
- 1) Account 920, Administrative and general salaries.
- 2) Account 921, Office supplies and expenses.
- 3) Account 922, Administrative expenses transferred - credit.
I (1 + p/P) = a ccst ratio by means of which those erpenses directly associatedwithpayroll(laboradditives)maybe added to direct labor charges. (
EL-5 (Page 19 of 2k) I p = the 3-year sum of the following labor additives:
- 1) Payroll Taxes Federal Old-age Benefits Federal Unemployment Insurance State Unemployment Insurance
- 2) Workmen'sC~~aan=ationand/orInjuriesandDamages (Payroll related costs caly)
- 3) Baployee Pensions and Benefits (Account 926). l
- 4) Pty for Time Not Worked Declude any labor additives which are included with the basic direct labor charges, ==las of which might be " Pay for time not worked" or Payroll taxes".
P = the 3-year sum of the total payroll with which the above labor ( additivea are associated. L, and O, = the 3-year suas of direct labor expense and direct other-than-labor expense, respectively, charged to all operation and maintenance expense accounts except Fuel (Account 501) for the entire company. La2 and Oa2 = the 3-year suas of direct labor expense and direct other-than-labor expense, respectively, charged all Administrative and General Dcpense Accounts 920 to 932, inclusive. The amount of adadnistrative and general expenses to be alloca*Ad to the Purchaser during a given period shall be the product of the above ratio multiplied by the tetal operation and saintenance expenses, aweinM n-Account 501, allocated to the Purchaser for that period. (
EL-5 (Page 20 of 24) (.. In addition, the Purchaser shall pay to CEI, at times payable by I CII, amounts determined by multiplying, (A) the property taxes and any other *m es except Federal Income Tax, payable by CEI with respect to the Unit for the periods the Purchaser was involved by, (B), the 0(IR) stio for that period. ( ( -
EL-5 (Page 21 of 24) ( SALES OF CAPACIIT AND E31GY FROM EASE LQAD 15 TITS TO REHASERS CAPC0 tDfIT No. 2 (EASTIAKE tR!!T NO. 5) EXIIBIT C WOREING CAPITAL, CE::menelterr Dewsit Recuired I The following schedules show the amount of deposit that would be requizwd to be placed with the operating cosgany to provide equitable compensation for added work-irg capital requirements during a period of sale. The amounts are for sales during 197P, 1973 and 1W4. DEPCsIT ASSOCIATED WITH A NON-0;mER WRCHASE -- $ PER Mi ( 1 972 E M PAYROLL $ 200 $ 200 $ 230 coal nivwr0E 3,800 3,800 5,500 coal MRcEASES 900 900 1,300 M'.S INVC1 TOE 1,000 1,000 1,250 MI6 MBCHASES 100 100 120 T0ZAL %,000 %,000 @ DEP:Xi1T FOR A JOINT OWhT,R (ASSUMING JOINT CWIERSEP OF THE CQAL PILE) -- $ PER !!f 1972 g g - PATROLL $ 200 $ 200 $ 230 coal mR:: EASES 900 900 1,300 MSG INYCIT0 E 1,000 1,000 1,250 MSG NRCHASES 100 100 120 TOTAL @ @ S gee.lation of Deoosit Schedules The deposit schedules snown above are to be applied for 1972, 1 W3, and 1W 4 werking capital compensation. Thereafter, escalation vill be esiculated -a a11y for each co=ponent of the depocit schedule by the Eseclation Task Force, and
EL-5 (Page 22 of 24) nenished to the Accounting and Finance Coc=ittee for approval and inclusion in ths Accounting and Procedure Manual. The Economic Studies Subcommittee vill p.w,dically review the deposit schedules, to incorporate more recent operatir.g deca. These periodic reviews vill be made as required or every three years, u:e chever cor.ss first. The first such review will take place in 1976, or sooner if required. Method of Co--snsation There are two a.sthods for co=pensating operating companies for added working capital requirements. A fully refundable deposit may be placed with the operat-ing company during the period of capacity entitlement in acco dance vita the stove schedules as appropriately escalated, or the operating co.psay may be cowated by being paid on the basis of the current CAPCC cost o' f capital ( vith provision for federal incoes tax.. naaltz,' lied by the syy.wy. late deposit schedule, calculated on a conth2y basis. The method of comper.sation shall be. deter =ined by nattual agreement between the two parties to the transaction. In the event that the two parties do not agree on the method of cocpensation, the operating c hpany shall decide upon the method I to be used. The CAPCO cost of capital with provision for federal incone taxes is given by the following tabulation for the years 1972,1973, and 197k. IM 12Z3. lE!! Bonds 4.27% 4.13% k.19% Preferred 0.74 0 90 1.01 Common k.24 M k.05 CAKO Cost of Capital 9 25% 900% 9 25% k.60 k.50 4.67 Federal Incose Tnx Total Co::t of Capital vith FIT Provision 13.85% 13 50% 13 92% (
E:.-5 (Page 23 of 2k) For sucsequent years, the CAKO Cost of Capital vill be found in Section 05-09 of the CAPCO Accounting and Procedure Manual. The provision for Federal Income Tr.xes is calculated by the formula: t FIT = (Preferred + Cosmon) x g vtare t is the effective tax rate, now . M. Retroactivity The provisions herein shall be retroactive. The basis for retroactive compensation sb C1 be the annual CMCO cost of capital including Federal Income Tax, applied to tae appropriate deposit schedule, calculated on a monthly basis. The resulting suounts vill then be subject to the short-term carrying charge rate as provided for in Section 05-21 of the Acceunting and Procedure Fanual. (
' EL-5 (Page 24 of 24)
SALES CF CAPACITY A!TD ENERGY FROM BASE LOAD UNITS TO PURCHASERS CAPCO UNIT NO. 2 (EASTIAKE UNIT NO. 5) EXHIBIT D DISP!ACEMENT TRAINING COSTS Installed Capacity at CAPCO Unit No. 2 (Eastlake No. 5) 650,000 kW Ownership Cleveland Electric Illuminating kk7,000 kW Duquesne Light 203.000 kW 650,000 kW ( . Cleveland Electric Illuminating as operating company assumed $h47,000 (based on$1/kW)foritsshareofdisplacementtrainingcosts. Therefore, under the terms bf this agreement the purchaser, would share in these costs based on its entitlement at the rate of 1/420 of the cost basis, for each billing month beginning ca September 21, 1972. I l (
1G-1 (ikge 1 ef 21' APPIIC X 3 TO SCHEDLE E Charges Avnlicable to Transactions From Bruce Hansfield Unit No.1 Pesuant to Schedule E This Appendix provides for specific charges applicable to trensactions made from Bruce Hansfield " nit No. 1 pursuant to Schedule E Costs will be shared on a basis equivalent to that of the joint owners. The following are the components cf the costs to be included. A. Fixed Costs of Invested Canital
- 1. It is expected that sales out of production units will occur predominantly over a relatively short time period in the early
, part of the unit's lif4. However, this Appendix develops a consistent basis which is applicable throughout the life cycle.
- 2. Amortization and tax calculations are based on the following:
Amortization Period 35 Years (420 Months) DDB Tax Life 28 Years (336 Months) Estimated Salvage Bate -5% Accounting Treatment Flow Through 3 DD3 tax depreciation is assumed, with switch to straight line method effective the first month in which the straight line remaining life depreciation exceeds DD3 depreciation, with
i 1 i FE-1 (Page 2 of 21) ( remaining life stretched out in the strsight line calculations to extend to the end of the book amortization period. The switch occurs at the end of the 221st month.
- k. All fixed charges are on a month-to-month declining basis. The ,
l investment base from which fixed charges are developed shall be { the CAPCO invesi. ment basis as defined in the Accounting and Procedure Manual under Procedures for Discharging Investment Responsibility. 5 The monthly finance charge rate applicable to all additions from the inservice date through the last month of the ca.lendar year in which the construction job order is closed out shall be one-twelfth the annual rate calculated as the weighted average of the ( finance charge rates applicable in the calendar years over which construction expenditures are incurred, using as weights the dollars expended in the respective years. All expenditures to the closing of the job order are to be included, using the best estimate available at the inservice date.
- 6. The finance charge rate for ordinary additions in years subsequent to the calendar year in which the construction job, order was closed out shall be the rute defined in the Accounting and Procedure Manual as the zste applicable to expenditures in the year in question. Only in the case of major capital additions mentioned in paragraph 8 will a weighted average finance charge as described in paragraph 5 apply.
W-1 (Page 3 of 21) ( 7. Amortization and other charges and adjustments shall be bined each month. Each month's additions to plant in service shan constitute a vintage investment. However, in order to simplify the bining process, the monthly vintages of any particular calendar year may be combined into a composite vintage, either en an on-going essis or at the end of the calendar year, providing the same bill results. Since finance charge rates are recalculated each year, vintages of different calendar years win not be composited.
- 8. The tax plant ratio to amortizable plant (CAPCO investment basis) shan be established from data for the total project as estimated at she inservice date, as described in paragraph 5 above. This ratio will be used in developing fixed charge rates for the initial placements and an subsequent additions; except that in the case
( of major capital additions, at se ner's option and with buyers' concurrence, a completely new vintage may be developed and the fixed charge factor recalculated using the new tax plant ratio and other pertinent data as appropriate. 9 When a production unit, or a major capital addition such as described in paragraph 8, is placed in connercial service the first fixed charge billing shan begin effective with the inservice date. For subsequent month-to-month additions the billing shall begin with the first fun calendar month after the addition is made.
- 10. Where sales are initiated out of an existing production facility to a new buyer, a single-vintage CAPCO investaant basis any be calculated, with an appropriate adjustment for depreciation incurred to date. The amortization component of the fixed charge factor win be' calculated on the basis of re==4a43 life of the original amortization period, or by mutual agreement.
MF-1 (Fest k of 21) l (
- 11. The specific fixed charge rate for Bruce Mansfield Unit No. 1 is developed in Exhibit A.
B. Ooeratina and Maintenance Costs
- 1. The methods cpecified in the attached .% ibit 3 shall be used to e.11ocate all costs, including overheads directly or indirectly applicable to the operation and maintenance of the operating company's ownership in such unit between it and the Purchaser (s).
- 2. The opersting company will prepare, revise from time to time as appropriate and furnish to the Purchaser (s) an annual estimate of the amount to be billed by months (a) for the cost of energy during the term of the purchase from a unit, ami (b) any other costs which shall acezuo during this period. The
( Opersting Company will fumish any reasonable request for estimates for longer periods if required by the Purchasers.
- 3. The operating company will maintain the records used in the determination of the ?urchaser(s) bill in order that the Purchaser (s) and their indapendent auditors shall have access at all reasonable times to such records and the operating company will furnish copies of such records as requested. The operating company shall preserv6 and maintain the originals of such reccrds for at least such. periods of time as the Purchaser (s) may request, having in mind the requirements of regulatory authorities having jurisdiction, and the policies and practices of the parties with respect to the retention of I
records. 1 l i i l
-- --- - - - - - ~ ' ~ ' ~ " " ' '
MF-1 (Page 5 of 21) 4 The cost of preparing, preserving and making copies of such budgets, records and accounts shall be borne by the campanies in ,.vg.-tion to their respective capacity entitlements, except that any costs incurred at the special request of the Purchaser (s) chall be borne by them.
- 5. The operating co. pan / shall have special audits conducted with respect to the matters provided for in this Appendix, either internally or by independent auditors, according to such programs and proce-iurcs as agreed to be necessary to conform to the suditing requirements of each Company, and shall furnish copies of the reports of such audits to the Purchaser (s). The cost of making such audits, 4 aaludian,any participation by the auditors of the Purchaser (s) agreed to be (mirable sad
( necessary, shall be shared by the Companies in relation to the current capacity entitlement ratio. The Purchaser (s) may, at their own expense, make such further audits, using their internal or independent auditors or both, as it any be deemed desirable.
- 6. If requested by the Purchaser (s), the operating company will make such examinations, analyses, or studies as wcre.1d go to support the reasonableness of the specific costs so alketted, or provide a basis for modification to achieve such reasonableness with respect to either the specific or the indirect cost allocations. Sharable costs which are incurred by the Purchaser (s) shall be accumulated and billed on a direct charge basis from specific records or reasonable estimates, with
( applicable additives as agreed upon by the Companias.
MF-1 (Page 6 of 21) (~ 7 Except as otherwise ymvided herein, the accountinC methods and practices normany in use at the time by each of the Companies in determining and assigning Operating and Maintenance costs, ges. orally, are to be used by such Company for the purposes of this Appandix unless otherwise a6 reed, provided such methods and practices are consistent with sound accounting ymetices.
- 8. The operating commy will )ill the Purchaser (s) for its share of property, franchise, business or other taxes applicable to their share of the unit, specificany identifying these items on the invoice when such taxes are payable by the operating company.
To the extent that such taxes are charged to the openting expenses of the Unit, because it is imprsetical or inequitable ( to segregate them, they will be bin ed as part of the nozual operating expense of the Unit. 9 As soon as possible after the close of each calendar month, preferably on or before the 8th working day of the following month, the operating company shan advise the Purchaser (s) of its proportionate share of estimated operating expenses, fixed charges, displacement training costs, and working capital for the preceding month. I
- 10. As soon as possible after the close of each calendar month, preferably on or before the 25th of the fonowing month, the operating company shall prepare and deliver an invoice to the Purchaser for its share of actual costs for the preceding month. The saount bined will be due and payable upon receipt
(
l XF-1 (.4ge 7 of _: cf invoice and will be subject te a late payment charge if net received within 15 days from date of invoice. C. h*orking Ca* ital It is recognized that the operating company undertakes certain obligations to provide expenditures in advance of compensation by the purchasers cf capacity and energy. These purebases include but may not be' limited to payroll, fuel and material and supplies purchases; and coal and material and supplies inventeries. A reasonable allowance for this investment in working capital funds shall be censidered a shareable cost to be compensated for as set out in detail in Dchibit C. ( D. Disniacement Training Costs The CAPCO Companies have agreed that the costs which an operating ccanpany will incur in training personnel at existing stations in order to be able to transfer experienced personnel to a new CAPCO generating u.it should be shared by the joint owners. Purchasers of Capacity and Energy shall also share in these Costs.
- 1. For the older CAPCO units, the cost basis of $1/EW of the installed ca;mcity was determined to be a reasonable estimate of the present-day cost which a company will incur within its existing plants as a result of assigning experienced company personnel to a new CAPC0 generating unit. Installed capacity for this purpose is defined as the Net Demenstrated Capability of the CAPCO g2nerating unit.
\
. \
*' A 5
. /
s m VS-1 (Page c'et 21'. ~ , p '*,;~ p (^ 2. It was recognized that these costs vill increase as gabor cosb
~
increased. Therefore, this cost determinatich factor of $1/KW . is subject to escalation for units planned to be in serfice after Davis-3 esse No.1 based on an index of the composite labor [cests of CAPCO Companies as acced to by the' CAPCO. Accounting and Finance
% s Pittee usitg 1.972 as the base yewequaling 100.0. The index g
-, s.
. y ,
to be applied is,that ca)culated for .1;he period two years prior 4s s %. , s to the actual inservice date for fossil
- fired generating units'. s
~ .. . .
As so escalated, the cost factor attributable to Bruce Manafield,'
.s Unit'No. 1 is'$1.060/ W. -
3 The purchasers of Capacity'End Energy a 3.L mhAre in these costa' for the periods they are involved. An amount of 1/k20 of the 's , ( cost basis for each E of the purchasing compkny's capacity
% . s.. . ,
N entitlement shall be included in the monthl;r billing. s
\
4 , 1 4
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- k. The cost basis provided for herein shall be abown in Er.hibit 3. :r
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- I, Basic Operating Agreement
^
i 4
,q e s Sales of Capacity and Energy from Base Load Units to Purchasers
,/ C\ ,. CAPCO Unit No. 5 (Bruce Mansfield Unit No. 1)
,"; ,% v Exhibit A gs l
, sj "
i,4 s. ' s ' ,
, - ,~ , Fixed Costs of Invested Capital L s , v. , .-
p ,- l Tht sont.bly fix'ed" charge for a vintage addition shall be calculated as the alge-
. braic"sw of ths following components:
i
' ^ -
3 4 ', < i.I-t M rtiration.'1/ The product of .0025 aultiplied by the gross CAPCO invest & sad base exclusive of land. s B. . F,1cance k rge. e 2/ The product of .00819167 (CEI), .00816667 (DUQ),
'.003150 -(G ), or .00819167 (PP) multiplied by the net unamortized CAPCO invastaant bass.as of the beginning of the month being billed.
C. Gross In one %- x. - 3/ The product of .00434705 (CEI), .00h9h039 (DUQ), 00433583 (OE) or .00k94977 (PP) multiplied by the net unamortized CAPCO investment b be as of the beginning of the month being billed.
' D. Income Tax Adjustment. 4/ The product of (I) the difference obtained by subtractists (a) [.0052015 (CEI), .0052597 (DUQ), .0050936 (CE), or
.0050179 (PP)] x .99404762M (where M is the number of amortization months elapsed prior t.o The month being billed), if the month being billed is f prior to the 222nd month of service, or (b) .001393 (CEI), .001kO9 (DUQ),
i .+ .[01364 (OE), of '.0013kk (PP), if the month being billed is the 222nd memth or later, iros (c) .0025, multiplied by (II) .98609732 (Ohio) or 1 12494688ir.(Penns CAPCO vestment gvania)1gvethergtmultipliedby(III)thevintage se exc Percertage Ownership CAPCO Companies: CEI-6.5%; DL-29.3%; OE-60%; PP-4.22
~1 6 t,
,. s .
..i 3 ' hte 1/ The monthly amortization rate (depreciable property only) is bared on
, a 420po th armortization period and a negative 5% salvage rate.
,, 1.05/420 = .0025 i
Notej/ The nionthly finance charge rate applicable to Mansfield No. 1 facilities g.. placed in servite in 1976 is:
\
\ CEI .0983/12 = .00819167
#, DUQ .0980/12 = .00816667
( h* i rs t , , OE .0981/12 =
.00817500
( PF .0983/12 =
.00819167
- ,\ \ ' Yhere .0983, ,0980, .0981 and .0983 are the respective weighted average w ,
of the annua [ finance charge rates applicable in the calendar years over which the facility was constructed, using the dollars expended in the
',N" '
., -1iespective'ytars as weights:
s
'N ,
l ~
\'
,A : ,e* '
{. . l I 7 k l . s
]
Y s .
MF-1 ( h Ee 10 cf 211 1 Assignment of Production Costs (' Sales of Capacity and Energy from Base Lead Units to Purchasers CAPCO Unit No. 5 (Bruce F.ansfield Unit No.1) !
- Exhibit A l
No,e ~2/ (Cont'd) Amount Expended (a) Year CEI DUQ g P PP, Total , 1971 $ 555,000 $ 1,900,000 $ 3,401,000 $ 806,000 $ 6,752,000 1972 2,002,000 9,989,000 20,209,000 1,0h3,000 33,2L3,000 : 1973 4.849,000 21,931,000 45,177,000 3,125,000 75,082,000 ! 1974 6,259,000 25,237,000 58,840,000 4,028,000 97,36h,000 ! 1975 5,650,000 2h,h61,000 53,904,000 3,503,000 87,518,000 l 1976 3.422,000 1h,905,000 29,372.000 2,20h.000 ~ 49,o03.000 i. Total $22,737,000 $101,p13,000 $210,903,000 $14,709,000 $349,o62,000 j l i Applicable Component i i Percent of Total Return Rate (b) ! i Year HEI, D3 OE PP Total Bonds Pref.'Com. Total l t 1971 2.441% 1 960% 1.622% 5.h80% 1 930% 4.90 0.70 4.40 10.00 ! 1972 8.805 9 8h0 9 582 7.091 9 502 4.27 0.74 4.24 9.25 1973 21.327 21.60k 21.k21 21.2h5 21.k60 4.13 0.90 3.97 9.00 1974 27.528 27.816 27.899 27 385 27.829 4.19 1.01 4.05 9.25 1 1975 24.849 2h.097 25 559 23.815 25.015 4.93 1.29 4.28 10.50 * (. 1976 15.050 1k.683 13.o27 14.98h _1h.26h 5.23 1.50 4.52 11.25 i Total 100.000% 100.000% 100.000% 100.000: 100.000% 4.54 1.10 4.19 9.83 (CEI) l 4.53 1.09 4.18 9.80 (DUC i 4.53 1.10 4.18 9.81 (CE) ! 4 55 1.09 4.19 9.83 (PP) i (a) Includes common facilities and land applicable to Mansfield Unit No. 1, and also substation facilities associated with production plant under the j
- joint ownership agreement.
l ! (b) Annual values as derived from preceding calendar year data. Composite ; values derived using annual expenditures as weights. j i Nota 3J The monthly gross income tax charge rate is the product of 1/12 x (.0529 l (CEI), .0527 (DUQ), .0528 (CE), or .0528 (PP)] multiplied by the federal I income tax rate
- and divided by the component of the income tax rate; f where .0529, .0527, .0528 and .0528 are the respective total equity com- i ponent of the annual finance charge rate: l CEI 1/12 x .0529 x .4963/(1 .4965) = .00434705 !
DUQ 1/12 x .0527 x .5294/(1 .5294) = 00h9h039 ! OE 1/12 x .0528 x .4965/(1 .4965) =
.00h33503 [
PP 1/12 x .0528 x .5294/(1 .5294) =
.00h9h977 l 1
! ( l I l l I
i MF-1 (hge il cf 211 Assignment of Production Costs Sales of Capacity and Energy from Base Load Units to Purchasers CAPCO Unit No. 5 (Bruce Mansfield Ur.it No.1) Exhibit A Note 3,/ (Cont'd)
*The income tax factor t/(1-t) is based on a composite federal and state tax rate "t" derived as follows:
Ohio owner selling from plant located in Pennsylvania: t = .095/3 + .48(1 .095/3) = .4965 Pennsylvania owrcr selling from plant located in Pennsylvania: l t= .095 + . 3(1.095) = .5294 The above values are derived on the basis of limiting the property effect of ths Pennsylvania income tax allocation factor to sales from plants in Pennsylvania. This basis shall be subject to reconsideration in the event of any substantial change in the affective Pennsylvania income tax rate or the structure of the allocation factor. Other special Pennsylvania taxes, such as the realty tax, the capital stock tax, and the foreign corporation franchise tax, shall be included, as applicable, with the operation and maintenance expense charges. l
,[ Note g/ The income tax adjustment results from the difference between amortization
and tax depreciation. DDB depreciation is based on a 336-month tax life.
The undepreciated portion of the original CAPCO tax basis (whose ratio 6 total CAPC0 basis in this case are .873850 (CEI), .883630 (DUQ.), .855727 (CE), and .843008 (PP) under DDB depreciation After a period of M months is the product of the original CAPC0 tax basis multiplied by the net tax-base factor: CEI .873850 x (1 - 2/336) , Where 1 - 2/336 = .99404762 DUQ .883630 x (1 - 2/336) , where 1 - 2/336 = .99404762 OE .8c5727 x (1 - 2/336) , Where 1 - 2/336 = .99404762 PP .cI3008 x (1 - 2/336) , Where 1 - 2/336 = .99404762 The monthly factor for tax depreciation under DDB depreciation is the pro-duct of the DDB depreciation rate multiplied by the net (undepreciated) tax basis (as of the beginning of the computation month): CEI 2/336 x .873850 x (1 - 2/336)M = .0052015 x .99404762M DUQ 2/336 x .883630 x (1 - 2/336)M = .0052597 x .99404762MM OE 2/336 x .855727 x (1 - 2/336)M = .0050936 x .99404762 M PP 2/336 x .6h3008 x (1 - 2/336)M = .0050179 x .99404762 The income tax adjustment factor is the product of the difference between the amortization factor and the DDB depreciation factor, multiplied, by the federal income tax rate and divided by the complement of the income tax rate. l
MF-1 ( kge 12 cf 21)
.- Assignment of Production Costs Sales of Capacity and Energy from Base Load Units to Purchasers
( CAPCO Unit No. 5 (Bruce Mansfield Unit No. 1) Exhibit A Ne ce 4 / (Cont'd) CEI (.0025 - (.0052015 x .99404762M )) x .4965/.5035, or (.0025 - (.0052015 x .99404762M )) x .98609732 DUQ (.0025 - (.0052597 x .9940476-2M )) x .5294/.4706, or M (.0025 - (.C052597 x .99404762 )) x 1.12494688 OE (.0025 - (.0050936 x .99404762 M )) x .4965/.5035, or (.0025 - (.0050936 x .99404762M )) x .98609732 PP (.0025 - (.0050179 x .99404762 M )) x .5294/.4706, or (.0025 - ( 0050179 x 99404762M)) x 1.12494688 Switch to straight line tax depreciation (with stretch-out of straight line tax life to the end of the amortization period occurs after the and of the 221st month (remaining life = 199 months). After switchover the monthly tax depreciation is the product of the recip-recal of the remaining life at switchover (199 months) multiplied by the algebraic difference between net tax basis and total expected net salvage to be realized: ( CEI 1/199 x 1 873850 x (1 - 2/336)221 .873850 x ( .05)] = .001393 DUQ 1/199 x [.883630 x (1 - 2/336)221 .883630 x ( .05)] = .001k09 OE 1/199 x [.855727 x (1 - 2/336)221 .855727 x ( .05)] = .00136h PP 1/199 x [.843008 x (1 - 2/336)221 .8h3008 x ( .05)] = .0013hk < Ne ce. 5_/ Development of CAPCO Tax Plant Ratio Adjustment to CAPCO Basis CEI DUQ OE PP (1) Total Investment per Booka $22,737,000 $101,hh9,000 $210,903,000 $14,709,000 (1) Payroll Taxes, Property Taxes, and Other Overheads Capitalized per Books but Expensed for Tax Purposes 285,000* 64,000* 1,648,000* 435,000* (3) 49.65: of Line (2) for Ohio Companies (142,000) (818,000) 52.94: of Line (2) for Pennsylvania Companies (34,000) (230,000) (4) Investment Tax Credit Applicable (1,079,000) (.",387,000) (10,493,000) (821.000) 1 (5) Adjusted to CAPCO Invest- l ment Basis $21.516,000 $96,092,000 $199,592,C00 513,655,000 (
W-1 (Page 13 of 21: (
~
' Assignment of Production Costs Sales of Capacity and Energy from Base Load Units to Purchasers CAPC0 Unit No. 5 (Bruce .".ansfield Unit No. 1)
Exhibit A
- c:a 5/ (Cont'd)
Adjustments to CAPCO Income CEl g OE PP Tax Basis (6) Land $ (208,000)$ (930,000) $ (1,904.000)$ (135,000) (7) Allowance for Funds Used During Construction (2,545,000) 0.1,044,000) (27,691,000) (1,918,000) (8) Balance of Payroll Taxes. Property Taxes, and other overheads Capitalized per , Books but Expensed for Tax Purposes 50 35% of Line (2) for Ohio companies (143,000) (830,000) 47.06% of Line (2) for Pennsylvania Companies (30,000) (205,000) (9) Adjusted CAPCO Income Tax Basis (Amortizable) $18,620,000 $81s,088,000 $169,167,000 $11,L00,000 (10) Adjusted CAPCO Investment Basis Less Land $21,308,000 $95,162,000 $197,688,000 $13,523,000 (11) Ratio of Adjusted CAPCO Income Tax Basis to Adjusted Amortizable Investment Basis .373850 .883630 .855727 .8h3008
- Net Used in Total.
l l l
[ l l !T-1 (.4ge ik cf 21' sal.r5 0F CAPACITY AND D:!RCY TROM PASE 14AD INITS TO PtitCl!ASERS i ( DRUCE E STIEl.D PIANT EXHI81T.B i l foretion I - Introduction . This Exhibit pertains to all agreements related to the Sales of Capacity and Energy f rom the owners of Bruce Hansfield Units No.1, 2 and 3 to Purchasers. In the event a Purchaser from a Unit does not schedule part or any of its energy antitlement as stated in the applicable agreement, the' balance uf its entitlement shall remain as espacity available to the Purchaser. provided that, if the Unit is operated i et minimum load required for safe operation of the Unit, the Purchaser shall be obli- l rated to schedule an amount of energy equal to the Unit's minimum load for the hour neultiplied by a fraction of which the numerator is the Purchaser's entitlement ur. der the applicable agreement and the denominator is the applicable Unit's Net Demonstrated C s pab,111ty. The amount of energy determined above, subject to adjustment for proportionate use of all plant auxiliary power assignable to the operation of a Unit, shall con-stitute a scheduled (billing) hvH value (net) as of the Unit's generator transformer low voltage terminals. An owner shall schedule for delivery from its system, and a Purchaser shall schedule for receipt into its system, an amount of energy equal to such billing value less the increase, or plus the decrease, in electrical losses as datermined by the Planning Conunittee under terms of the CAPCO Tr'ansmission Facilities f A2reement, as the case may be, incurred on its system resulting from the transmission
\ of auch energy, including losses on the Unit's step-up transformar resulting frca the tunsmission of such energy.
(Section II - Accountina canuepts The basis for allocating the operation and maintenance costs of Bruce Hansfield Units No.1, 2 and 3 among the joint Owners is set forth in Exhibit A of the Operating Agres nent for these Units. This Exhibit prescribes the method of determining the portion of that cost of an Owner which will be 1.!11ed to a Purchaser. The costs to be billed to a Purchaser will be segregated as to those that are
- di.rvetly identified with the Purchaser and to those that are allocated either on an investment responsibility or a coal consumed basis. The codes for these segregations ate defined at the end of Section III.
In addition to the direct costs for operating and maintaining a Unit, an Owner si's11 bill a Purchaser for an appropriate portion of indirect overheads and taxes other than income taxes as defined in Section V. j,eetion III - Alloestion of Costs The operation and maintenance costs identified by FPC account number are assigned j to a Purchaser either directly or on the basis of appropriate allocation codes as set ferta in the following table: (
MF-1 ( Age 15 of 21) Section ITT - Allocation of Costs (Continued) i Omer's Costs to be Direct Allocated to Purchaser Basis to Allocation Codes Th Description Purchaser M M M I OPERATION ACCOUhTS
'30 Supervision & Engineering I 501 Fuel 501.10 Coal X 501.11 011** X X 501.20 Residual Disposal ** I X 502 Steam Expenses ** X X X SOS Electric Expenses X 506 Miscellaneous Steam Power Expenses X 5C7 Rants X MAIh7EMANCE ACCOUhTS
( 510 Supervision & Engineering X 511 Structures ** X X 5:2 Boiler Plant ** X X 513 Electric Plant X 5 11. Hiscellaneous Steam' Plant I _C*,tER ACCOUhTS 552 Operation - Station Expense *** X 570 Maintenance of Station Equipment *** X
**See Operating Agreement between Owners Exhibit A for breakdown of these Accounts. *** Step-Up Transformer and connecticn to switch yard only.
Direct charges will be made to a Purchaser for fuel constened as decarmined in accordance with Section IV. (
.T -1 (kge 16 of 20 l Jection 171 - Allocation of Co,s,,,t,,y, t (Continued)
IntA d &
* (10 . The portion of an Owner's cost of a Unit to be billed to a Purchaser during the current month shall be (a) the no-load and start-up coal consumed plus the variable portion of coal consumed for net positive generation (as determined in Section IV) for the Purchaser during the current month divided by (b) the total adjusted cons of coal charged to the Owner during the current month. In the event an accounting charge occurs in a month when a Unit did not operace, data vill be used from the next preceding month for which data is available.
C*IR) The portion of an Owner's operation and maintenance expense of a Unit j to be billed to a Purchaser during the current month shall be a fraction of which the numerator is the Purchaser's entitlement from the Unit as specified in the applicable agreement and the denominator is the Owner's ownership interest in the Unit rounded to the nearest whole megawatt. An Owner's ownership interest in a Unit shall be the product of the prevail-ing Net Demonstrated Capability (NDC) of a Unit multiplied by that Owner's percentage ownership in the Unit. If the capacity of a Unit is reduced due to operating problems, the! Purchaser will be entitled to his O(IR) ratio multiplied by the Owner's entitlement of the output of the Unit on an hour to hour basis. SY(IR) The portion of an owner's cost of a Unit to be billed to a Purchaser during the current month shall be (a) the total cons of coal allocated to the Purchaser for the preceding twelve-month period divided by (b) the cons of coal charged to the Owner for the same twelve-month period. Prior to the time that this data is available on a twelve-month basis, available data will be used to determine the allocation ratio. yeccion IV - Fuel In determining fuel costs for a Unit a Purchaser shall be treated in the same asnner as an Owner. The fuel costs shall be allocated in proportior. to the Btu's consumed to produce the kilowatt-hours taken by each of those sharing in the output of the Unit, taking into account the Bru's consumed during start-ups of the Unit. Tt.e Owner's share of Btu's used during a start-up (including Btu's which may be supplied by transfers of steam from steam sources other than that Unic's own steam source) and Beu's computed to have been used during periods of synchronized on-line operation of the Unit to maintain zero load on the Unit (the 'T' incarcept, or no-load input, of the standard Input / Output equation for the Unit) shall be allocated among those sharing in the Owner's share of the output of the Unit in proportion to their investment responsibilities in the Unit during the month for which allocation l is being made. Beu's consumed during periods of synchronized on-line operation in ercess of those used to maintain zero load on the Unit (see preceding statement) shs11 be allocated each hour in proportion to the net kilowatt-hours determined to have been taken from the Unit by each of those sharing in the output of the Unit.
MT-1 (7kge 17 cf 20 ( section Itt - A11oestion of Costs (Continued) Section V - Other Expenses Tor billing of costs to a Purchaser, labor and material additives at current rates prevailing at Pennsylvania Power Company as adjusted from time to time, shall be added to those labor and material components of direct operation and maintenance costs of a Unit to which such rates are applicable and shall be shared by the Purchasers on the same basis on which the primary labor and material costs are shared. For billing of costs to a Purchaser Administrative and General Expenses shall be allocated to a Unit on the basis of the composite three-year moving average ratio for Pennsylvania Power Company, esiculated at the end of each calendar year and to become effective on July 1 of the following year, in accordance with the following formula: Lal (1 + p/P) + Oa1 (4-42) (1 + p/P) + (0.-Da2) In which: 1,g and 0,g = the three-year sums of direct labor expenses and direct other-than-labor expense, respectively charged to the following accounts: ( 1. Account 920 - Administrative and General Salaries
- 2. Account 921 - Office Supplies and Ex;.; tses
- 3. Account 922 - Administrative Expenses Transferred - Credit (1 + p/P) = a cost ratio by means of which those expenses directly associated with payroll (labor additives) may be added to direct labor charges.
p = the three-year sum of the following labor additives:
- 1. Payroll Taxes Federal Old Age Benefits Federal Unemployment Insurance State Unemployment Insurance
- 2. Workmen's Compensation and/or Injuries and Damages (Payroll Related Costs Only)
- 3. Baployee Pensions and ansfits (Account 926)
- 4. Pay for Time Not Worked Ixclude any labor additives which are included with the basic labor charges, examples of which might be " Pay for Tina Not Worked" or " Payroll Taxes."
P = the three-year sum of the total payroll with which the above labor additives are associated.
MF-1 (hge 18 cf 21 ( igetion v - Other Expenses (Continued) 7., and O. = the three-year suas of direct labor expense and direct other-chan-labor expense, respectively, charged to all Operation and Maintenance Expense accounts except Fuel (Accounts 501, 518 and 547) for the entire company. L,.,* and Oa2 = the three-year sums of direct labor expense and direct other-than-labor expense, respectively, charged to all Administra*1ve and General Expense Accounts 920 to 932, inr.lusive. The amount of Administrative and General Expenses to be allocated to a Purchaser during a given period shall be the product of the above ratio multiplied by the total operation and maintenance expenses, excluding Account 501 allocated to the Purchauer for that period. In addition a Purchaser shall pay an Owner, at the times payable by the Owner, amounts determined by multiplying (a) the property taxes and any other taxes except Federal Income Tax, payable by the 1.rner with respect to the Unit for the periods the Purchaser was involved by (b) the O(IR) ratio for that period involved. Insurance costs shall also be shared on the basis of the 0(IR) ratio for the periods a Purchaser is involved. ( ,(
LI-1 (Page ic of gl'i i Basic Operating Agreement Sales of Capacity and Energy from Base Load Units to Purchasers ( CAPCO Unit No. 5 (Bruce Mansfield Unit ho. 1) Exhibit C Reimbursements of Workins Capital Costs t r uel Inventory,- Working Capital Costs Applicable to a Purchaser of Capacity and Energy. A. Rimbursement by Monthly Carrving Charme in Lieu of Deposit The charge for a given month per megawatt of capacity purchased shall be eased on the Seller's total dollar balance in fuel inventory per megavatt of capacity, at the and of the month in which service was rendered, and shall be calculated as follows:
- 1. Mansfield Unit #1 The product of (a) (Total Dollars in Fuel Inventory for the Entire Mansfield Unit No. 1)
(b) (The Ratio of Total ikgawatt Capacity Purchased to Total Megawatt Capacity of Mansfield Unit No. 1.) (c) (One-Twelfth of the Current Annual CAPC0 Composite Capital Cost Rate, Augmented to Include Seller's CAPCO Income Tax Liability,on the Equity Component) B. Reimbursement by Deposit of Working Capital ( The amount of the deposit shall be an appropriate portion of the dollar balance in fuel inventory, calculated as the product of the respective factors (a) and (b) in (1) or (2) above, except that the deposit will be adjusted, not every monen, but at six-month intervals and shall be calculated respectively as the average of the first six and the second six calendar months of the year. II. Materials and Supplies Inventory - Working Capital Cost Applicable to a Purchaser, or to a Joint Owner if M&S Inventory is not jointly owned. A. Reimbursement by Monthly Carrying Charge in Lieu of Deposit The charge for a given month per megawatt of capacity purchased (or shared) shall be based on the Seller's total dollar balance in M&S inventory at the end of the month in which service was rendered, and shall be calculated as follows:
- 1. Mansfield Unit #1 The product of (a) (Total Dollars in Seller's M&S Inventory at the Entire Plant)
(b) (The Ratio of Total Megawatt Capacity Purchased (or Shared) to the Total Megawatts of Seller's Plant Capacity) (c) (One-Twelfth of the Current Annual CAPCO Composite Capital l Cost Rate, Augmented to Include Seller's CAPCO Income Tax Liability on the Equity Component) 1 Reimbursement by Deposit of Working Capital The amount of the deposit shall be an appropriate portion of the dollar balance in M&S inventory, calculated as the product of the respective factors (a) and (b) above: except that the deposit shall be adjusted at six-month intervals and not every month.
O
}f-1 (hge 20 of 21'
( 3asic Operating Agreement Sales of Capacity and Energy from Base Load Units to Purchasers CAPCO linit No. 5 (Bruce Mansfield Unit No. 1) Exhibit C Reimbursements of Working Capital Costs III. Monthly Tusl, M&S Purchases, and Payroll Expenses - Working Capital Cost Applicable to a Purchaser or to a Joint owner. The deposit for a given month per megawatt of capacity purchased (or shared) shall be in the amount of $600. The monthly charge in lieu of deposic per megawatt of capacity purchased , (or shared) shall be calculated as the product of $600 :nultiplied by (One-Twelfth of the Current Annual CAPCO Composite Capital Cost Race, Augmented to Include Seller's CAPCO Income Tax Liability on the Equity Component.) The deposit amount will be reviewed from time to time to determine whether the amount is still appropriate, in particular considering the M&S pur-chases required for such facilities as the scrubber and waste disposal systems. ( l
E-1 (hge 21 cf 21: ( Basic Operating Agreement Sales of Capacity and Energy frem Base Load Units to Purchasers CAPCO Unit No. 5 (Bruce Mansfield Unit Ne, 1) Exhibit D Displacement Training Costs lastalled Capacity at CAPCO Unit No. 5 - Bruce Mansfield Unit No. 1 825,000 Kw Dwnership Cleveland Electric Illuminating Company 6.5n Duquesne Light Company 29 3% Ohio Edison Company 60.0% Pennsylvania Power Company k.2% Total 100.05 The owning companies respective shares of the displacement training costs, based
,on $1.069/Kw, are:
Cleveland Electric Illuminating 8 57,325 Duquesne Light Company 258,404 Ohio Edison Company 529,155 Pennsylvania Power Company 37,041 { Therefore, under the terms of this agreement, each purchaser, would share in these costs based on its antitlement at the rate of 1/420 of the cost basis, for each b1211ng month beginning with the effective purchase date. (.
3"-1 (.4ge 1 cf 25: l APPENDIX h To SO!EJULE E Charges Applicable to Tzsnsactions Free Beaver Valley Unit Nc.1 Pursuant to Schedule E This Appendix provides for specific charges applicable te transactions
=c:ie fro = Seaver Vaney Unit No.1 pursuant to Schettle E.
Costs will be shared on a basis equivalent to that of the joint owners. The following are the components of the costs to be included.
- k. Fixed Costs of Invested Capital
- 1. It is expected that sales out of production units will occur predomicantly over a relative short time period in the early part of the unit's life. However, this Appendix develops a consistent basis which is applicable throughout the life cycle.
- 2. Amortization and tax calculations are based on the following:
Amortization Period 35 Years (420 Months) DDB Tax Life 28 Years (336 Months) Estimated Salvage Pate -10% i Accounting Treatment Flow Through 3 DDB tax depreciation is assumed, with switch to straight line method effective the first month in which the straight line remaining life depreciation exceeds DDB depreciation, with (
F.*-1 (Page 2 of 2fi remaining life stretched out in the straight line calcula: ices to extend to the end cf the book amorti::stion period. The switch occurs at the end of the 221st month.
- 4. All fixed charges are on a month-to-month declining basis. The investment base from which fixed charges are developed shall be the CAPCC investment basis as defined in the Accounting and Procedure Manual under Procedures for Discharging Investment Responsibility.
1 5 The monthly finance charge rate applicable to all additions from the inservice date through the last month of the calendar year l in which the construction job order is closed out shall be one-twelfth the annual rate calculated as the weighted average of the ( finance charge rates applicable in the calendar years over which construction expenditures are incurred, using as weights the dollars expended in the respective years. All expenditures to the closing of the job order are to be included, using the best estimate available at the inservice date.
- 6. The finance charge rate for ordinary additions in years subsequent to the calendar year in which tne construction job crder was closed out shall be the rate defined in the Accounting and Procedure Manual as the rate applicable to expenditures in the year in question. Only in the case of major capital additions mentioned in paragraph 8 will a weighted average finance charEe as described in pazagraph 5 apply.
( 1
EV-1 (Page 3 of 25 )
- 7. Amortization and other charges and adjustaents shall be bined each month. Each month's additions to plant in service shall constitute a vintage investaant. However, in order to simplify the billing pimeess, the monthly vintages of any particular calendar year any be combined into a composite vintage, either on an on-going basis l
or at the end of the calendar year, providing the same biu results. l Since finance charge rates are recalculated each year, vintages of different calendar years viu not be composited. S. The tax plaat ratio to amortizable plant (CAPCO investment basis) sha n be established free data for the total project as estimated at the inservice date, as described in paragraph 5 above. This ratio will be used in developing fixed charge rates for the initial placements and all subsequent additions; except that in the case ( of anjor capital additions, at seller's option and with buyers' concurrence, a completely new vintage any be developed and the fixed charge factor recalculated using the new tax plant ratio and other pertinent ' data as appropriate. 9 when a production unit, or a major capital addition such as described in paragraph 8, is placed in comercial service the first fixed charge billing shall begin effective with the inservice date. For subsequent month-to-month additions the billine shall begin with the first full calendar month after the addition is sede.
- 10. Where sales are initiated out of an existing production facility to a new buyer, a single-vintage CAPC0 investaant basis any be calculated, with an appropriate adjustment for depreciation incurred to date. The amortization component of the fixed charge factor wi n be calculated on the basis of remaining life of the original amortization period, or by mutual a6reement.
r 3V-1 (page k of 25)
- 11. *he specific fixed charge rate for Beaver Vaney *.~r.it l'o.1 is developed in Exhibit A.
S. Opersting and MLintenance Corts
- 1. The methods speciflei in the attacned f.xhibit 3 shs.11 be used to allocate all co.-ts, including, overheads directly or indirectly applicable to the operation and maintenance of the operating con:pany's ownership in such unit between it and the Purchaser (s).
- 2. The opersting co rpany will prepare, revise from time to time as appropriate and furnish to the Purchaser (s) an annual estimate of the amount to be billed by months (a) for the cost of energy during the term of the purchase from a unit, and (b) any other costs which shall accrue during this pehod. The Operating Company will fumish any reasonable request for estimates for lor.6er periods if required by the Purchasers.
3 The operating company will maintain the records used in the determination of the Ihrchaser(s) bill in order that the Purchaser (s) anit their independent auditors shall have access at all reasonable times tn such records and the operating company will furnish copies of such records ar. rectuested. The operating company shall preserve and maintain the oriF inals of such records for at least such periods of time as the Purchaser (s) may request, having in n:ind the requirements of regulatory authorities having jurisdiction, and the policies and practices of the parties with respect to the retention of records. ( l l I
1 BV.1 (page 5 of 25 ) (' 1. *he cost of p-eparint, preserving and making copies of such budgets, records and accounts shall be borne by the companies in proportion to their respective capacity entitlements, except that any costs incurred at the special request of the Purchaser (s) shall t,e borne by them.
- 5. The operating company shall have special audits conducted with respect to the matters provided for in this Appendix, either internally or by independent auditors, according to such programs and procedures as agreed to be necessary to conform to the auditing reqdirements of each Company, and shall furnish copies of the reports of such audits to the Purchaser (s). The cost of making such audits, including any participation by the auditors of the Purchaser (s) agreed to be desirable and
( necessary, shall be shared by the Companies in relation to the current capacity antitlement ratio. The Purchaser (s) may, at their own expense, make such further audits, using their internal or independent auditors or both, as it may be deemed desirable.
- 6. If requested by the Purchaser (s), the operating company will make such examinations, analyses, or studies as would go to support l 1
the reasonableness of the specific costs so allocated, or provide a basis for modification to achieve such reasonableness with respect to either the specific or the indirect cost allocations. Sharsble costs thich are incurred by the Purchaser (s) shall be accumulated and billed on a direct charge basis from specific records or reasonable estimates, with I spplicable additives as agreed upon by the Companies. ( !
1 i SV-1 (Page 6 of 25'
. Except as othe:vi:e provided hereir., .he accountinC :ethods and practices normally in tee at the time by each of the Oo:spanies in deterrdnliy nnd asetes.!v iperating and lkintenance costs, renerally, are to be use.! by such Company for the purposes of this s'.ppendix unic::: c . irs: .tise agreer., pro'..i de:! v:ch methods and practices are cor. sister.t with sound accounting practices.
- 6. The operating company win blu the Purchaser (s) for its share of property, franchise, business or other taxes applicable to their share of the uni t, cpecificany identif/'ing these items on the invoice when such taxes are payable oy the operatig co:rrper.y.
To the extent that such taxes are charged to the operating expenses of the Unit, because it ic impractical or inequitable to segregate them, they vill be billed as part of the normial operatine, expense of the Unit.
- 9. As soon as possible after the close of each calendar mo.th, preferably on or before the 8th working day of the fonowing month, the operating conpan;< shal.1 ac* rise the Eurenacer(s) of its proportionrite snare # c:tincte; operatin6 expenses, fixed charges, disp'.acement training costs, and working capital for the preceding iconth.
- 10. As soon as possible after the close of each calendar month, preferably on or before the 25th of the fonowine month, tne operrring coarpany shall prepare and deli ter an invoice to the Purchaser for its share of actual costr for the precedinc ,
I ionth. The amount bined vill be due a:2d payable upon receipt ; (
37-1 ; tsge 7 of 25. of invoice and will de :.ut. Ject to a late payment charge if not received within 1., days from date of invoice.
.. Working Capital It is recognized that the operating courpany undertakes certain obligations to provide expenditurec in advance of coerpensation by the pt: enasers of capacity and energy. Nese purchas es include out .tay not be li:nited to payroll, fael and e.aterial and supplies purchases; and coal sad material and supplies ir.ventories. A reasonable allowance for this investaant in working capital funds shall be considered a sharable cost to be compensated for as set out in detail in Dchibit C.
D. Displacement Training Costs The CAPC0 Cor::panies have agreed that the costs which an operating company will incur in training personnt,1 at existing stations in order to be able to transfer experienced persor.nel to a new CAPCO generating unit should be shared by the joint owners. Purchasers of Capacity and Energy shall also share in these costs.
- 1. For each ner CAPCO unit, the cost basis of $1/KW of the 1.netalled capacity is determined to be a reasonable estimate of the present-day cost which a company will incur within its existing plants as a result of assigning experienced colspany personnel to a new CAPCO generating unit. Installed capacity for this pu.rpose is defined as the Net Demonstrated Capability ot'-the 6AFC0 genenting unit.
(
EV-1 (.i ge i cf 25-2. It is reccgnized that -hese ecsts vill ine ease as 3ter ecsts increase. Therefore, -his cost deter =inatien facter of 31/:~.' shall be subject to escalation for units planned to be in service after tavis-Bosse No.1 based on an index of the co=posite laher q costs of CAPCO Companies as agreed to by the CAPCO Accounting and Finance Cc:mittee using 1972 as the base year equaling 1EO. The index to be applied shall be that calculated fer the period two years prior to the actual inservice date for fossil-fired generating units and for the period three years prior to tae actual inservice date for nuclear units. 3. The purebasers of Capacity and Energy shall share in these costs for the periods they are involved. An amount of 1/k20 of the cost basis for each IG of the purchasing company's capacity ' entitlenent shall be included in the monthly billing. 4. The cost basis provided for herein shall be shown in Exhitit D . i /
3*.'-1 (.4ge o cf 15) 3ASIC OPER/CD:3 AGP.ISC Sales cf Capacity and Inergy front 3ase Load Units to P1renasers CAP:0 Unit No. 3 (Seaver Va!. ley Unit Sc.1) EXRIBIT A FIXED COSTS OF INVESTED CAPITAL The scnthly fixed charge for a vintage addition shall be calculated as the algebraic sum of the following components: A. Amortisation. JJ The product of .00261905 sultiplied by the adjusted CAPCO investment base exclusive of land. (Line #10 of Note 5/) B. Finance Charme. J/ The product of .00817500 (DUQ), .00818333 (CE), or
.00815833 (PP) multiplied by the net unamortized CAPCO investment base as of the beginning of the month being billed.
C. Cross Income Tax. 3/ The product of .00494039 (DUQ), '.00433825 (CE), or .00493102 (PP) sultiplied by the net unamortized CAPCO investment ( base as of the beginning of the month being billed. D. Income Tax Adjustment. 4/ The product of (I) the difference obtained by
.00462017 (DUQ), .00458218 (CE), or .0045211 (PP) x subtraccigg(a)
.99404762 (where M is the number of amortization months elapsed prior to the month being billed), if the month being billed is prior to the 222nd month of service, or (b) .00143261 (DUQ), .00142083 (CE), or
.00140189(PP),if the month being billed is the 222nd month or later, from (c).00261905 multiplied by (II) .985966 (Ohio) or 1.124947 (Pennsylvania) and the result multiplied by (III) the vintage gross CAPCO investment base exclusive of land.
M .CENTAGE OWNERSHIP OF CAPCO COMPANIES: D.L.Co.47.5%: 0.E.Co.35.0t P.P.Co.17.5% Note Jj The monthly amortization rate (depreciable property only) is based on a 420-month amortization period and a negative 10% salvage rate. 1.10/420 .00261905 ( i
2.*-1 (Iage 10 cf 25' ( l Note 2/ The sonthly finance char 8e rate applicable to Beaver Valley No. 1 facilities placed in service in 1976 ist DUQ .0981/12 = .00817500 OE .0982/12 = .00818333
=
PP .0979/12 .00815833 Where .0981, .0982 and .0979 are the respective weighted average of the annual finance charge rates applicable in the calendar years over which the facility was constructed, using the dollars expended in the respective years as weights: Year Amount Expended ($1,000)(*) DUQ OE PP TOTAL 1969 & Price $ 5,845 $ 3.587 $ 2,338 $ 11,770
- .970 15,758 11,171 5,558 32,487 1971 48,249 32,183 17,702 98,134 1972 42,493 26,771 15,774 85,038 1973 35,552 28,298 13,348 77,198
( 1974 48,082 33,159 17,862 99,103 1975 44,943 32.210 17,273 94,426 1976 (Est) 32,750 25,117 11.20s sa its Total $ 273,672 $ 192,496 $ 101,150 $ 567,318 Applicable Component Return Rate (b) Jear _ Percent of Total Bonds Pref. Com. Total DUQ OE PP Total 1909 & Prior 2.136: 1.863% 2.312% 2.075% 3.22 0.58 5.20 9.00 1!70 5.758 5.803 5.495 5.726 4.07 0.69 4.74 9.50 1971 17.630 16.719 17.500 17.298 4.90 0.70 4.40 10.00 1972 15.527 13.907 15.595 14.989 4.27 0.74 4.24 9.25 l 1973 12.991 14.701 13.196 13.608 4.13 0.90 3.97 9.00 1974 17.569 17.226 17.659 17.469 4.19 1.01 4.05 9.25 1975 16.422 16.733 17.077 16.644 4.93 1.29 4.28 10.50 1976 (Est) 11.967 13.048 11.166 12.191 5.23 1.50 4.52 11.25 total 100.000% 100.000% 100.000% 100.000: 4.54 0.98 4.29 9.81 (DUQ) 4.54 0.99 4.29 9.82 (OE) 4.53 0.98 4.28 9.79 (PP) (a) Includes cosanon facilities and land applicable to Beaver Valley No. 1, and also substation facilities associated with production plant under the joint ( ownership agreement. (b) Annual values as derived from preceding calendar year data. Composite values derived using annual expenditures as weights.
l 37-1 (.4;e 11 :f 25- - l I Na:e 3/ The monthly gross income tax charge rate is the product of 1/12 x
.0527 (DUQ), .0528 (CE), or .0526 (PP) multiplied by the federal and state income tax rate and divided by the component of the income tax rate *;
where .0527, .0528 and .0526 are the respective total equity component of the annual finance charge rate: DUQ 1/12 x .0527 x .5294/(1 .5294) = .00494039 OE 1/12 x .0528 x .496467/.503533 = .00433825 PP 1/12 x .0526 x .5294/(1 .3294) = .00493102
- The income tax factor T is based on a composite federal and state tax 1-T rate "T" derived as follows:
( Ohio owner selling from plant located in Pa. T = .095 + .48 (1 .095) = .496467 3 3 Pa. owner selling from plant located in Pa. T = .095 + .48 (1 .095) = .529400 The above values are derived on the basis of limiting the property effect of the Pa. income tax allocation factor, to sales from plants in Pa. This basis shall be subject to reconsideration in the event of any substan-tial change in the effective Pa. income tax rate or the structure of the allocation factor. Other special Pa. taxes such as Realty Tax, Capital Stock Tax and the Foreign Corporation Franchise Tax, shall be included, as applicable, vich the operating and maintenance expense charges.
T.'-1 l.4;e *2 :f 2* ( Note 4_/ The income tax adjustaant results from the difference between amortization and tax depreciation. DDS depreciation is based on a 336-month tax life. The undepreciated portion of the original CAPCO tax basis (whose ratio to total CAPC0 basis in this case are .776188 (DUQ), .769807 (CE), and .759547 (PP) under DDB depreciation after a period of M months is the product of the original CAPC0 tax basis multiplied by the net tax-base factor: DUQ .776188 x (1 - 2/336)M, W ere 1 - 2/336 = .99404762 OE .769807 x (1 - 2/336)M, Were 1 - 2/336 = .99404762 ) PP .759547 x (1 - 2/336)M, were 1 - 2/336 = .99404762 The monthly factor for tax depreciation under DDB depreciation is the product of the DDB depreciation rate multiplied by the not (undepreciated) tax basis (as of the beginning of the computation month): DUQ 2/336 x .776188 x (1 - 2/336)H = .00462017 x .99404762 OE 2/336 x .769807 x (1 - 2/336)M = .00458218 x .99404762M PP 2/336 x .759547 x (1 - 2/336)M = .0045221 x .99404762M The incree tax adjustment factor is the product of the difference betveso the f amortization factor and the DDB depreciation factor, multiplied by the itderal income tax rate and divided by the complement of the income tax rate. DUQ (.00261905- (.00462017 x .99404762 )) x .5294/.4706, or (.00261905- (.00462017 x .29404762 )) x 1.124947 OE(.00261905-(.00261905- (.00458218 x .99404762 )) x .985966 (.00458218 x .99404762})) x .496467/.503533 PP (.00261905- (.0045211 x .99404762 M )) x .5294/.4706, or (.00261905 - (.0045211 x .99404762M )) x 1.124947 Switch to straight line tax depreciation (with stretch-out of straight line tax life to the end of the amortization period occurs after the end of the 221st month (reasining life = 199 months). After switchover the monthly tax depreciation is the product of the recip-rocal of the remaining life at switchover (199 months) multiplied by the algebraic difference between net tax basis and total expected net salvage to be realized: DUQ 1/199x{.776188x(1-2/336)221 .776188x(.10)]=.00143261 OE
, 1/199x{.769807x(1-2/336)221 .769807 x ( .10)] = .00142083 PP 1/199x[.759547x(1-2/336)221 .759547 x ( .10]= .00140189
~
?T-1 (Ph. e l" of 2-(x Mote ,5_/ Development of CAPC0 Tax Plant Ratio Adjsetzent to CAPC0 Bas _i_s, g OE PP (1) Total Investment per Books $273,672,000 $192,496,000 $101,150,000 (2) Payroll Taxes, Property Taxes, and Other Overheads Capitalized per Books but Expensed for Tax Purposes Total = $1,086,577 (D.L.Co.)
$2,330,445 (0.E.Co.)
$2.364,000 (P.P.Co.) -----
(3) 49.6467% of Line (2) for Ohio owners (1,157,000) 52.94% of Line (2) for Pa. owners (575.000) (722,000) (4) Investment Tax Credit Applicable (12,626,000) (7,671,000) (3.461.000) (5) Adjusted to CAPCO Investment Basis $260,471,000 $183,668,000 $96,967,000 Adjustments to CAP;0 Income {ax Basis { (6) Land $ (136,000) $ (100,000) $ (50,000) (7) Allowance for Funds Used During Construction (57,755,000) (41,083,000) (22,662,000) (8) Balance of Payro11 Taxes, Property Taxes, and Other Overheads Capit-alized per Books but Expensed for Tax Purposes 50.3533% of Line (2) for Ohio owners (1,173,000) 47.06% of Line (2) for Pa. owners (511,000) (642,000) (9) Adjusted CAPCO Incm Tax Basis (Amortizable) $202,069,000 $141,312,000 $73,613,0C0 (10) Adjusted CAPCO Invastment Basis Less Land $260,335,000 $183,568,000 $96,917,000 (11) Ratio of Adjusted CAPC0 Income Tax Basis to Adjusted Amortizable Investment Basis .?75188 .769807 .759547 (
B*-1 (h ie U cf 2* (' l Sales of Capacity and Energy from Base Icad Units to Parchasers 3eaver Vaney Plant Exhibit 3 getion I - Introduction This Exhibit pertains to an agreements related to the Sales of CapacityIn L:t Energy from the Owners of Beaver Valley Units No.1 and 2 to Nrchasers. t/.:e event any Purchaser does not schedule part or any cf its energy entitlement as stated in the applicable agreement, the balance of its entitlement shall remain as capacity availe.ble to'the Nrchaser, provided that, if the Unit is operated at rAnimum load required for safe operation of that Unit,, the Purchaser shan be obligat,ed to echedule an amount of energy equal to that Unit's minimwn load for the hour, multiplied by a fraction of which the numerator is the Purchaser's entitlement under the applicable agreement and the denominator is the applicable Unit's Net Demonstrated Capability. The amount of energy determined above, subject to adjust-ment for proportionate use of all plant auxiliary power assignable to the operation of each Unit, shall constitute a scheduled (bining) WH value (net) as of each Udt's generator transformer high voltage terminals. Each Owner shan schedule for delivery from the Units, and each Purchaser shall schedule for receipt into ir.s system, an amount of energy equal to such bining value less the increase, or plus the decrease, as the case may be, in electrical losses incurred on its system resulting from the transmission of such energy as determined by the Flanning Comittee under tems of the CAPCO Transmission Facilities Agreement. (. Section II - Accounting Conceg*g The bssis for allocating the operation and maintenance costs of Beaver Velley Units No. 1 and No. 2 between the joint owners is set forth in Exhibit A of the Operating Agreement for these units. This Exhibit prescribes the method of determining the portion of that cost of an Owner which will be bined to a Purchaser. 1 The costs to be billed to a Purchaser will be segregated as to those that are directly identified with a Purchaser and to those that are anocated aither on an investeent responsibility or a fuel consumed basis. The codes for chese segregations are defined st the end of Section III. In addition to the direct costs for operating and maintaining a Unit, an Dener shall bill a Purchaser for an apprcpriate portion of indirect overheads and taxes other than income taxes as defined in Section V. Section III - Allocation of Cests The operatien and maintenance costs identified by yFC account number are sssigned to a Purchaser either directly or on the basis of appropriate allocation codes as set forth in the follo.ing table. (
.- 1 ( Enge * ! cf 2 ~ '
( . Direct Owners Costs to be Basis Allocated to the Purchaser Account To Allecation Codes Hamber Furchaser O(ITs) HY(IR) CFERATION ACCCUNTS 517 Supervision und Engineering X 513 Nuclear ruel Expense X X 513 Coolants and Water Steam Expenses
- X 510 .
- Steam Expenses
- X 520 Electric Expenses X 523 Misc. Nuclear Power Expenses X 57u Rents X 525 Pl.U.TENANCE ACCOUNTS Supervision and Dngineering X 528 Structures X 529 Reactor Plant and Equipment
- X 530 530 Reactor Plant and Equipment
- X Electric Plant X
! 531 Misc. Nuclear Plant X
$32 .
OTEER ACCOUNTS 562 Operation - Station Expenses X 570 Maintenance of Station Equipesnt X
*!es Exhibit A cf the Beaver Valley Operating Agreement fer breakdown of these accounts.
Lirect charges will be :nade to a Purchaser for fizel consumed as detemined in accordance with Section IV. Code Basis , O(IR) The 1.ortion of an Owner's operation and maintenance costs I for a Unit to be billed to a Purchaser fer the current month shall l l be a fraction of which the numerator is a Purchaser's entitlement from sne Gnit ni specified in the applicable agreement and the denominater is an Owner's ownersnip interest in that Unit, both figures rounded to the nearest whole megswatt. An Owner's owner. ( ship interest in a unit shall be the product of the prevailing l l l
r 1 L . a
# 3*.* *. '. Page 1 ~ ef 2 -
1
. l 6N , j C,od d Basis 's * }
Net Demonstrated Capability (NDC) of a Unit multiplied by that Owner's percentage ownership in the unit. If the capacity of a Unit is reduced by operating probler.s, a Purchaser win be entitled to his 0 (IR) ratio multiplied by the Owner's entitlement of the output of the Unit on an hour to hour basis.
.Y(IR) 9 The portion of an Owner's cost for a Unit to be bined to a Purchaser for the current month shall be a fraction of which the numerator is the portion of the BTU input to the main unit turbine used to produce the hilowatt hours of energy taken from the Unit by the Purchaser during the preceding 12-month period and the denominator is the portien of the BTU input to the main turbine used to produce the kilowatt hours of energy taken from the Unit by the Owner during that same preceding 12-month period. Prior to the time that this data is available on a 12-month basis, available data win be used to detennine the anocation ratio.
Section IV - Fuel In determining fbel costs a Purchaser shan be treated in the same manner as an Owner. The fonowing basic principles shall govern the calculation of depletion (amortization) of fuel assemblies instaned in the reactor for heat production and the bi ning of fuel costs to Purchasers.
- 1. Nuclear fuel a:semblies shan be considered to be producing
. heat only during periods of zero or positive net generation.
- 2. During periods of negative net generation, it will be considered that installed nuclear fuel asceablies are not producing tes.t and are not thus consumed. During periods of negative net Seneration, records of station service electric energy supplied by the system : hall be maintain =d and the participants in the .
I unit shall be invoiced for such electric energy in proportien to their inve:tment responsibilities in the Unit at the operating owner's sy: tem average production coct (including net purchased power costr.) during the current calendar month adjusted to exclude the output and cost during the current calendar month of the Unit to which such station service energy was supplied. 3 During periods of zero or positive net generatien, the e:rnponants of consumption of heat free nuclear fuel a:semblies shan be considered to con:ist of a fixed heat consumption ccr.ponent and ( a variable her.t consumption eceponent. The ecmponents of heat consumption are inustrated by the current Input / Output curve l l l - - . -
~ - . . . . _ _ . - - _ _ _ _ _ _ _ _ _ _ _
I 3*l-1 (Page :. :f 2P e k for each Unit as agreed to by the Owners. The fixed portion of heat consumption consists of the heat produced by the reactor required to supply station service electric energy plus heat losses in the plant.
- 4. During periods of zero or positive net generation, the fixed and variable portiens of the total unit heat consumption shall be calculated on an hour by hour basis. The fixed portion of the Unit heat consumption shall be the product of service hours accu-mulated during periods of zero or positive net generation times the fixed unit heat consumption as indicated on the current Input / Output curve for each Unit as agreed to by the Owners. The variable portion of the unit heat consumption shall be the total net main unit generation in Mwehr/hr converted to BTU /hr excluding the fixed unit heat consumption utilizing the relationship between Wehr/hr versus BTU /hr as represented on the current Input / Output curve for each Unit as agreed to by the Owners. The total unit l
heat consumption shall be the sum of fixed and variable portions of the unit heat consumption. The portion of the cost of nuclear fuel consumed to be considered to be attributable to fixed unit heat consumption shall be the total cost of nuclear fuel consumed f times a fraction the numerator of which is the moathly fixed unit heat consumption and the denominator of which is the total monthly unit heat concumption. The portien of the cost of nuclear fuel consumed to be attributable to variable heat consumption shall be the total cost of nuclear fuel consumed minue the portion of the cost of nuclear fuel consumed attributable to fixed unit heat consumption. 5 In calculations using amortization in proportion to Main Unit heat consumption for deterinining the cost of nuclear fuel consumed i Duquesne light shall take into account the original acquisition cost of the materials and services required to provide the fuel as originally installed, the predicted total heat output of the assem-blies and the estimated net value of salvage materials. DL shall calculate such cost of nuclear fuel consumed using methods and/or computer codes generally considered acceptable by the CAPCO Ccznpanies for this purpose.
- 6. Fixed nuclear fuel expense shall be allocated among participants in a Unit in proportion to their investment responsibilities in the Unit during the month for which the allocation is being made. Variable nuclear fuel expense shall be allocated among those sharing in the output of a unit in proportion to the BTU consumed to produce the kilowatt hours of energy taken from the Unit by each participant during the month.
l
. -_. __ . . . -_ _ _ . - - -- ....._~ - ---, -
F.'-l (hge 1 ef 2:' ( 7 For owned nuclear fuel, the total monthly fixed and variable nuclear fuel expense for a unit shall be detemined by the fozzula FCe = _E c (A c ~ S) f I f
, where:
FCe= Nuclear Puel expense during the current accounting month. Ee = The energy, in BTU, produced during the current accounting month. If = The energy, in BTU, expected to be produced from the beginning of the current accounting month until the estimated end of life of the fuel. Ae = The unamortized value of the f\lel as reflected by the difference between the balances in Accounts 120 3 (!!uclear fuel assemblies in reactor) and 120.3 (Accumulated provision for amortization of nuclear [ fuel assemblies) at the beginning of the current
. accounting month.
St = Anticipated salvage value of the fuel with related deductions including but not limited to shipping, reprocessing and waste disposal costs. Such cost will be separated into fixed and variable components as described in 3 above.
- 8. The total monthly fixed and variable nuclear fuel expense for leased nuclear fuel consumed is composed of A) a burnup expense related to energy resource consumption B) amortization of accumu-lated deferred expenses not related to burnup pertaining to the period prior to the beginning of commercial operation of the leased nuclear finel and C) monthly payments not related to burnup made by the Owners to the lessor pertaining to the period after the beginning of cmmercial operation of the leased nuclear fuel. A, B, as.d C will each be separated into fixed and variable ccaponents as described in 3 above.
A. The monthly burnup expense shall be cr.lculated as follows: B e
=
g (C c ~ 3) f If f
3Y-1 (h e i 19 Of 25 ' ( where: Be = Burnup expense for the current accounting month. Ee = The energy, in BW, produced during the current accounting month. E f
= The energy, in BW, expected to be produced from the beginning of the current accounting month to the end of life of the fuel.
Ce = The lessor's net investment (acquisition cost as defined in the lease agreement less burnup expenses prior to the current accounting month) at the begin-ning of the current accounting month. S f
= Anticipated salvage value of the fuel with related deductions including but not limited to shipping, reprocessing and waste disposal costs.
B. The amortization of accumulated deferred expenses not related to burnup pertaining to the period prior to the (- teginning of ccesnercial operation of the leased nuclear fuel shall be calculated as follows: PDA c = Ee (Dp ) Ef where: PDA e = The current month amortization of deferred expenses not related to burnup pertaining to the period prior to the beginning of ecennercial operation of the leased nuclear fuel. Ee = The energy, in BW, produced during the current accounting month. If = The energy, in BW, expected to be produced from the beginning of the current accounting month to the end of life of the fuel. Dp = The unamortized portion at the beCinning of the current accounting month of the deferred expense not related to burnup pertaining to the period l prior to the beginning of ceaunercial operation of the leased nuclear fuel. (
3V-1 (Pkge 20 cf 2f5 l C. Monthly paynents not related to burnup made by owners to the Iessor pertaining to the period after the beginning of ecm-mercial operation of the leased nuclear fuel shall be calculated as follow:: MP4 = R e (Ce ) where: MPLe = The current payments not related to burnup made by the Owners to the Lessor. R, = The current lease rate as defined in the lev e agreement expressed as the decimal equivalent of percent per month. Ce = The lessor's net investment (acquisition cost as defired in the lease agreement less burnup expenses prier to the ! current accounting month) at the beginning of the current l accounting month. Section . W her Expenses ( For billing costn to the Purchaser, labor and material additive costs at current rates prevailing at Duquesne Light Company as adjusted from time to time shall be added to the labor and material components of direct operation and maintenance costs of Beaver Valley Units No.1 and No. 2 to which such rates are applicable and shan be shared by Purchasers on the same bases on which the primary labor and material costs are shared. In addition, an allocation win be made of Account 556, system Control and Icad Dispatching costs related to production, and Account 557, Other Production T.xpenses, These costs would be anocated to Beaver Vaney Units Nos.1 and 2 on a direct basis where a direct relationship exists, or on a net generating capability ratio when a direct relationship does not exist. Account 556 will include only those load dispatching costs incurred by DL that are attributable to the Beaver Valley Units No. 1 and No. 2. Included in Account 557, Other Production Expenses, are such items a.s insurance premiums and recoveries and other production expenses not directly assignable to the other production accounts. These costs included in Account 557 may be charged directly where a direct relationship exists or, if not, thry may be allocated on a net generating capability basis. The invoice wi n id3ntify amounts billed that were included in Account 557. For billing costs to harchasers administrative and general expenses shall be allocated to Beaver Vaney Units No.1 and No. 2 on the basis of the three-year moving average ratio for Duquesne Light Ccuspany calculated at the end of each cal-endar year to become effective on July 1 of the following year in accordance with the following formula. l
.-.___-__.-c_ . - , - - . -
N-1 iPart 21 ef 25 l l I,g (1 + p/P) + Ogg ( 4- 42) (1 + p/P) + (Oe-Ca2) In which: . 141 and Oa1 = the 3-year sums of direct labor expense and direct other-than-labor expense, respectively charged to the fonowing accounts:
- 1) Account 920, Administrative and general salaries
- 2) Account 921, Office supplies and expenses
- 3) Account 922, Administrative expenses transferred - Credit (1 + p/P) = A cost ratio by means of which those expenses directly associated with the payroll (labor additives) may be added to direct labor charges.
;- = the 3-year sum of the following labor additives:
- 1) Payron Taxes
, Federal Old-age Benefits Tederal Unemployment Insurance
( State Unemployment Insurance
- 2) Workmen's Compensation and/or Injuries and Damages (Payroll related costs only)
- 3) Employee Pensions and Benefits (Account 926) h) Pay for Time Not Worked Ex;.:1ude any labor additives which are included with the basic direct labor charges, examples
- of which might be " Pay for time not worked" or "Fayron taxes".
P = the 3-year sum of total payroll with which the above labor additives are associated. Ig and 0, ,= the 3-year cums of direct labor expense and direct other-than-labor expense, respectively, charged to all operatial and maintenance expense accounts except Fuel (Accounts 501, 518 and 547) for the entire company.
= the 3-year sums of direct labor expense and direct other-than-Ls2 and Oa2 labor expense, respectively, charged to an operation and General Expense Accounts 920 to 932, inclusive.
The amount of adninistrative and general expenses to be anocated to 7 Purchasers during a given period shan be the product of the above ratio multiplied (
f 3'v'-l (.%ge 22 cf 2f by the total direct eperat$on and maintenance expenses, excluding Account 518, r.11ocated to a Purchaser for that period. In addition e. Purchaser shell pay to the Owner, at times payable by the S ler, amounts determined by multiplying (A) the property taxes and any other taxes except Tederal Income Tax, payable by the Owner with respect to the Unit for tne periods a Purchaser was involved by, (B) the O(IR) ratio for that period. ( (
- - - - - -- -a
3V-1 (Base 23 cf 25: BASIC OPERATING AGD N ( Sale of Capacity and Energy from: Base Lead Units to P.:rct:asers CAPCC Unit No. 3 (Leaver Valley Uni , Iic.1) . I EZHIBIT C ' REIMBURSEMENT OF WORKING CAPITAL COSTS
]
I. Accumulated Deferred Fuel Expenses - Working Capital Costs Applicable to a Purchaser of Capacity and Energy. A. Reimbursement by Monthly Carrying Charse in Lieu of Deposit The charge for a given month per megawatt of capacity purchased shall be based on the Seller's total dollar balance in deferred expenses for leased nuclear fuel per negawatt of capacity, at the end of the month in which service was rendered, and shall be calculated as follows:
- 1. Beaver Valley Unit No. 1 The Product of (a) (Total Dollars in Deferred Tuel Expense for Beaver
( Valley Unit No. 1 Nuclear Tual) (b) (The Ratio of Total Megawatt capacity Purchased to Total Megawatt Capacity in Service at Beaver Valley Unit No. 1) (c) (One Twelfth of the Current Annual CAPCO Composite Capital Cost Race, Augmented to Include Seller's CAPCO Income Tax Liability on the Equity Component) 1 l B. Reimbursement by Deposit of Working Capital The amount of the deposit shall be an appropriate portion of the dollar balance in accumulated deferred fuel expenses, calculated as the product : of the respective factors (a) and (b) above. Such deposits are to be l amortized monthly as outlined in Exhibit A, Section IV, principle 8B of this operating agreement. (
EV-1 (h ce 2k et 25) II. Materials and Supplies Inventerv - Working Capital Cost Applicable to
' a Purchaser, or to a Joint Owner if H&S Inventory is not jointly owned.
A. Reimbursement bv Monthly Carrying Charge in Lieu of Deoosit The charge for a given month per megawatt of capacity purchased (or shared) shall be based on the Seller's total dollar balance in M&S inventory at the end of the month in which service was rendered, and shall be calculated'as follows:
- 1. Beaver vallev Unit No. 1 The Product of (a) (Total Dollars in Seller's MLS Inventory at
.the Entire Plant)
(b) (The Ratio of Total Hegawatt Capacity Pur-chased (or Shared) to the Total Megawatts of Seller's Plant Capacity) (c) (One Twelfth of the Current Annual CAPC0 Composite Capital Cost Race, Augmented to Include Seller's CAPCO Income Tax Liability on the Equity Component) B. Reimbursement by Deposit of Working Capital The amount of the deposit shall be an appropriate portion of the dollar balance in H&S inventory, calculated as the product of the respective factors (a) and (b) above; except,that the deposit shall be adjusted at six month intervals and no't' every month. III. Monthly Fuel' M&S'Purchasen. and Payroll Expenses - Working Capital Cost Applicable to.a Purchaser or to a Joint Owner. The deposit for a given month per megawatt of* capacity purchased (or shared) shall be in the amount of $600. The monthly charge in lieu of deposit per megawatt of capacity purchased (or shaved) shall oc calculated as the product of $600 multiplied by , (One Twelf th of the "Curra .t Annual.CAPCO Composite Capital Cost Race, l Augmented to Include Seller's CAPCO Income Tax Liability on the Equity Component.) { The deposit amount will be reviewed from time to time to deter. tine whether or not the amount is still appropriate.
3V-1 ( A3e 25 et 25) 3ASIC OPERATING AGREI2CT Sales of Capcity and Energy frca Esse Ioad Units to Purchasers CAPCO Unit No. 3 (3eaver Valley Unit Nc.1; EIMIBIT D DISPLACEMENT TRAINING COSTS Installed Capacity at Beaver Valley No. 1 856,000 kW ownership Duquesne Light Co. 47.5% Ohio Edison Co. 35.0% Pennsylvania Power Co. 17.5% 100.0% The owning companies' respective shares of the displacement training costs, based on $1.00/kW, are: Duquesne Light Co. $406,600 Ohio Edison Co. $299,600 Pennsylvania Power Co. $149,800 Therefore, under the terms of this agreement, each purchaser will share in these costs, based on its entitlement at the rate of 1/420 of the cost basis, for each billing month beginning with the effective purchase date. (
.T-2 (kge 1 of 21'
( AFPENDIX 5 TO SCKEDULE E l - Charges Acclicable to Transactions From Bruce Mansfield Unit No. 2 P.trstant to Senedule E This Appendix provides for specific cearges applicable to transactions ! cade from Bruce Mansfield Unit No. 2 pursuant to Schedule E Costs will be shared on a basis equivalent to that of the joint owners. The following are the components of the costs to be included. A. Fixed Cests of Invested Capital *
- 1. It is expected that sales out of production units will occur predominantly over a relatively short time period in the early part of the unit's life. However, this Appendix develops a consistent basis which is applicable throughout the life cycle.
- 2. Amortization and tax calculations are based on the fcilowing:
Amorti:ation Period , 35 Years (k20 Months) DDB Tax Life 28 Years (336 Months) Estimated Salvage Rate -5% Accounting Treatment Flow Through 4 3 DDE tax depreciation is assumed, with switch to straignt line method effective the first month ir. which the straight line remaining life depreciation exceeds DDB depreciation, with
- Studies are underway to review the apprepriateness of ei th of the four c:=penents of Fixed 0:sts, and the conclusions cocid resul- in retre-active sdjust=ents.
MF-2 (Page 2 of 21) ( remaining life stretched out in che straight line calculations to extend to the end of the book amortization period. The switch occurs at the end of the 221st month.
- h. All fixed charges are on a month-to-month declining basis. The ,
investment base from which fixed charges are developed shall be the car 00 investment basis as defined in the Accounting and Procedure Manual under Procedures for Discharging Investment Responsibility. 5 The monthly finance charge rate applicable to all additions from the inservice date through the last month of the calendar year in which the construction job order is closed out shall be one-k twelf th the annu~
- rate calculated as the weighted average of the finance charge :stes applicable in the calendar years over which J
construction expenditures are incurred, using as weights the dollars expended in tne respective years. All expenditures to the closing of the job order are to be included, using the best estimate available at the inservice date.
- 6. The finance charge rate for ordinary additions in years subsequent to the calendar year in which the const uction job order was closed cut shall be the rate defined in the Acccunting and Procedure Fanual as the rate applicable co expenditures in the year in question. Caly in the case of major capital additions mentioned in paragraph 8 will a weighted average finance charge as :lescribed in ;mragraph 5 apply.
_. . __ )
NF-2 (1.ge 3 of 21)
- 7. Amortization and other charges and adjustments shall be bined each month. Each month's additions to plant in service shall constitute a vintage investment. Hrwever, in order to simplify the billing process, the monthly vintaces of any particular calendar year may be combined into a composite vintage, either on an on-going basis or at the end of the eslandar year, providing the same bill results.
Since finance charge rates are recalculated each year, vinta6es of different calendar years win not be composited.
- 6. The tax plant ratio to amortizable plant (CAPCO investment basis) shan be established from data for the total project as estimated at the inservice date, as described in paragraph 5 above. This ratio wi n be used in. developing fixed charge rates for the initial k placements and all subsequent additions; except that in the case of major capital additions, at sener's option and with buyers' concurrence, a complet.ely, new vintage may be developed and the fixed charge factor recalculated using the new tax plant ratio sad other pertinent data as appropriate.
9 When a paduction unit, or a major capital addition such as described in pangraph 8, is placed in connercial service the first fixed charge billing shan bestin effective with the inservice date. For subsequent month-to-month additions the billing shall begin with the first full calendar month after the addition is made.
- 10. Where sales are initiated out of an existine production facility to a new buyer, a single-vintage CAPCO investment basis may be calculated, with an appropriate adjustment for depreciation incurred
( to date. The amortization component of the fixed charge factor win be calculated on the basis of r===d"4-~ life of the original amortization ;sriod, or by mutual agreement.
i I Hr 2 (Page k of 21.) (
- 11. The specific fixed charge rate for Bruce Fansfield Unit No. 2 is developed in Exhibit A.
B. Oceratina and Maintenance Costs
- 1. D e methods specified in the attached Denibit B shall be used l
to allocate all costs, includin6 overheads directlty or indirectly cyplicable to the operation and maintenance of the operating coerpeny's ownership in such unit between it and the Purchaser (s).
- 2. De operating company will prepare, revise from time to time as appropriate and furnish to the Purchaser (s) an annual estimate of the amount to be billed by months (a) for the cost of snergy during the term of the purchase from a unit, and (b) any other costs which shall accrae during this period. De Opersting Company will famish any reasonable request for estimates for longer periods if required by the Purchasers.
3 The operating compaar will maintain the records used in the deterrination of the Purchaser (s) bill in order that the Purchaser (s) and their independent auditors shall have access at all reasonable times to such records and the operating com:pany l vill furnish copies of such records as requested. The I operating company shall preserve and maintain the originals of such records for at least such periods of time as the Purchaser (s) ::sy request, having in mird the requirements of regulatory authorities having jurisdiction, and the policies sad practices of the parties with respect to the retention of ( records.
Mr-2 (Pese 5 of 21) ( 4 The cost of preparing,, preserving and making copies of such budgets, records and accounts shall be borne by the companies in propertion to their respective capacity entitlements, except that any cents incurred at the special request of the 1%rchaser(s) chall be borne by them. 5 The operating company shall have special audits conducted with , respect to the matters provided for in this Appendix, either internally or by independent auditors, according to such programs and preceiurcs as agreed to be necessary to conform to the auditing requirements of each Company, and shall furnish copies of the reports of such audits to the Purchaser (s). The cost of asking such audits, 4_aal= Hag any participation by the auditors of the Purchaser (s) agreed to be desirable sad ( necessary, shall be shared by the Caarpanies in reistion to the current capacity entitlement ratio. The Purchaser (s) asy, at their own expense, aske such further audits, using their internal or independent auditors or both, as it any be deemed desirable.
- 6. If requested by the Purchaser (s), the operating company will aske such *=4 nations, analyses, or studies as would go to support the reasonableness of the specific costs so anocated, or provide a basis for modification to achieve such reasonableness with respect to either the specific or the indirect coat anocations. Sharable costs which are incurred by the Purchaser (s) shall be accumulated and billed on a direct charge basis from specific records or reasonable estimates, with
{ applicable additives as agreed upon by the Companies.
)G'- 2 (Pep 6 of 21)
- 7. Except as otherwise proviied herein, the accountinc methods and practices normally in use at the time by each of the Companies in determining and assigning Operating and Maintenance costs, generally, are to be used by such Company for the purposes of this Appendix unless otherwise a6 reed, provided such methods and practices are consistent with sound accounting practices.
- 8. The operstir.g coaspany will bill the Purchaser (s) for its share of property, franchise, business or other taxes applicable to their share of the unit, specifically identif/ing these items on the invoice when such taxes are payable by the operating company.
To the extent that such taxes are charged to the operating expenses of the Unit, because it is impractical or inequitable to segregate them, they will be billed as part of the normal l operating expense of the Unit. l 9 As soon as possible after the close of each calendar month, preferably cn or before the 8th workin6 day of the following month, the operating company shall advise the Purchaser (s) of its proportionate share of estimated operating expenses, fixed charges, displacement trsining costs, and working capital for the preceding month.
- 10. As soon as possible after the close of each calendar month, preferably on or before the 25th of the following month, the operating company shall prepare and deliver an invoice to the purchaser for its share of actual costs for the preceding month. The amount billed will be due and payable upon receipt
, -----,-.v . . - - . - . _ , - - , . , - - - , , - - , _ _ - , , , , - - - ,
MF--2 (Page 7 of 21) of invoice and win be subject to a late paymen: charge if not received within 15 days from date of invof.ce. C. Werking Capital It is recognized that the operating company undartakes certain obligations to provide expenditures in advance of compensation by the purchasers of capacity and energy. These purchases include but any not be limited to payroll, fuel and material and supplies purchases; and coal and material and supplies inventories. A reasonable anovance for this investment in working capital funds shall be considered a shareable cost to be compensated for as set out in detail in Exhibit C. (' D. Displacement Training Costs Thu CAPCO Ccunpanies have agreed that the costs which an operating ccapany win incur in training personnel at existing stations in crd e to be able to transfer experienced personnel to a new CAPCO generating un'it should be shared by the joint owners. Purchasers of Capacity and Energy shan also share in these costs.
- 1. Ter the older CAPCO units, the ecst basis cf $1/iC4 of the installed ca;scity ses determined to be a reasonable estimate of the present-day cost which a company win incur within its existing plants as a result of assigning experienced ccmpany personnel to a new CAKO generating unit. Installed capacity for this purpose is defined
( as he :le: Cenenstrated Capability of the CAPCO gJnersting ';. nit.
MF-2 (Page 8 of 21) ;
- 2. It ws recognized that these costs win increase as labor costs increased. Therefore, this cost determination factor of $1/ W is subject to escalation for units planned to be in service af ter Davis-Besse No.1 based on an index of the composite labor costs of CAPCO Companies as agreed to by the CAPCO Accounting and Finance Ccamittee using 1972 as the base year equaling 100.0. The index to be applied is that calculated for the period two years prior to the actual inservice date for* fossil-fired generating units.
_. As so escalated, the cost factor attributable to Bruce Mansfield Unit No. 2 is $1.225/W. 3 The purchasers of Capacity and Energy shan share in these costs for the periods they are involved. An amount of 1/h20 of the ( cost basis for each W of the purchasing company's capacity entitlement sha n be included in the monthly billing.
- k. The cost basis provided for herein shan be shown in Exhibit D.
1
1 MF-2 (Page 9 cf 2if~ ( Sales of Canacity and Energy From Base Load Units to Parchasers , Brace Mansfield Unit No. 2 l l Exhibit A , Fixed Costs of Invested Capital
- The monthly fixed charge for a vintage addition shall be calculated as the algebraic sum of the following components: ,
A. Amorti:ation. 1/ The product of .0025 aultiplied by the gross CAPCO invest-ment basa exclusive of lard. 3, Finance Charste. 2/ The product of .00842500 (CEI), .00828333 (DUQ),
.00845333 (CE), .00844167 (PP), or .00831667 (TE) multiplied by the cat unamortized CAPCO investment base as of the beginning of the month being billed.
C. Cro'ss Income Tax. 3/ The product of .00451961 (CEI), .00506226 (DUQ),
.00453605 (CE), .00516538 (PP), or .00446209 (TE) =ultiplied by the not unamortized CAPCO investnant base as of the beginning "'
of .the month being l billed. D. Income Tax Adiustment. ,4] The product of (f) the difference obtained by ( subtracting (a) [.0050069 (CEI), .0051739 (DUQ), .0049150 (CE), .0048997 (PP) or .0049584 (TE)] x .99404762M (where M is the number of amortization months elasped prior to the month being billed), if the month being billed is prior to cha 222nd month of service, or (b) .001341 (CEI), .001386 (DUQ),
.001317 (CE), .001312 (PP), or .001328 (TE), if the month being billed is the 222nd month or later, from (c) .0025, multiplied by (II) .98609732 (Ohio) or 1.12494688 (Pannsylvania), and the result multiplied by (III) the vintage gross CAPCO investment base exclusiva of land.
Percentage Ownership CAPCO Companies: CEI-28.6%; DL-8.0%; OE-39.3 : PP-6.8:: TE-17.3% Nota 1/ The monthly amortization rate (depreciable property only) is based on a 420-month anottization period and a negative 5% salvage rate. 1.05/420 = .0025 Note 2/ The senthly finance chstge rate applicable to Mansfield No. 2 facilities placed in service in 1977 is: CEI .1011/12 = .00842500 DUQ .0994/12 = .00828333 OE .1015/12 = .00845833 PP .1013/12 = .00844167 TE .0998/12 = .00S31667 1
**ere 10.11, 9.94,10.15,10.13 and 9.98 are the respective vaighted average of the i
! f
.nual fr.ance chstga races applicable in the calendar years over which the facility lt was constructed, using the dollars expanded in the respective years as weights:
I
- Studies are underway to review the apprcpriateness of each of the fcur ecmpenents cf ?ized Cests, and the conclusicas ceuld result in retroactive acustments.
l 1 l I I W-2 (kge 10 of 2?.) ' !( l Note 1/ (Cont'd) Amoune Expended (a) __
.I.tE .C,,f,1 p,U,g g g 3 Total 1971 $ 770,000 3 347,000 $ 1,031,000 $ 313,000 $ 759,000 $ 3,'220,000 1972 3,645,000 1,136,000 4,929,000 903,000 2,847,000 13.510,000 1973 13,744,000 4,174,000 18,892,000 3,229,000 S,836,000 48,875,000 1974 28,560,000 8,346,000 39,003,000 6,881,000 19,655,000 102,945,000 1975 20,162,000 6,793,000 27,680,000 4,806.000 14,465,000 73,906,000 1976 19,363,000 2,436,000 28,935,000 4,761,000 6,396,000 61,941,000 1977 14.985.000 3.439.000 22.737.000 3.728.000 9.418.000 54.357.000 Total $101,229,000 $27,321,000 $143,207,000 $24,621,000 $62,376,000 $358,754,000 Applicable Component Percent of Total Return Race (b)
Year CEI D,g g g IE, Total Bonds Prof. Com. Total 1971 0.761 1.270 0.720 1.271 1.217 0.897 4. 90 ..'. O . 70 4.40 10.00 1972 3.601 4.341 3.442 3.668 4.564 3.766 4.27 0'.74 4.24 9.25 1973 13.577 15.278 13.192 13.115 14.'i65 13.623 4.13 0.90 3.97 9.00 ( '974 28.213 32.378 27.235 27.948 31.511 28.695 4.19 1.01 4.05 9.25
>75 19.917 24.864 19.329 19.520 23.190 20.601 4.93 1.29 4.28 10.50 1976 19.128 9.099 20.205 19.337 10.254 17.266 5.23 1.50 4.52 11.25 1977 _14.803 12.770 15.877 15.141 15.099 15.152 4.73 1.38 4.89 M (c)
Total 100.000 100.000 100.000 100.000 100.000 100.000 4.61 1.19 4.31 10.11 (CEI) 4.54 1.14 4.26 9.94 (DUQ) 4.63 1.20 4.32 10.15 (CE) 4.62 1.19 4.32 10.13 (PP) 4.55 1.15 4.23 9.98 (TE) (a) Includes common facilities and land applicable to Mansfield Unit No. 3, and also subscacion facilities associated with productions plant under the joint ownership agreement. (b) Annual values as derived from preceding calendar year data. Composite values 1 derived using annual expenditures as weights. (c) Fer use on a preli*mg basis only. Noce 3/ The acachly gross 1.come tax charge race is the produe: of 1/12 a .0550 (CEI), .0540 (DUQ), .0552 (CE), .0551 (PP), or .0543 (TI) multiplied by the federal income tax race
- sud divided by the component of the fneone tax ra:e; whera .0550, .0540, .0552, .0551 and .0543 are the respective total equity componene of the annual finance charge rate:
I CEI 1/12 x .0550 x .4965/(1 .4965) = .00451961 DUQ 1/12 x .0540 x .5294/(1 .5294) = .005'J6226 l OE 1/12 x .0552 x .4965/(1 .4965) = .00453605 I PP 1/12 x .0551 x .5294/(1 .5294) = .00516538 TI 1/12 x .0543 x .4965/(1 .4965) = .00446209 l
MF-2 (Page 11 of 21) Note 3/ (Cont'd)
*The income tax factor c/(1-c) is based on a composite fadaral and state tax rata "t" derived as follows:
Ohio owner salling from plant located in Pennsylvania: c = .095/3 + .48(1.095/3) = .4965 Pennsylvania owner selling from plant located in Pennsylvania: I = .095 + .48(1.095) = .5294 The above value's are derived on the basis of limiting the preparty affect of the Pennsylvania incona tax allocation factor to sales from plants in Penn-sylvania. This basis shall be subject to reconsideration in the avant of any substantial change in the effective Pennsylvania income tax rate or the attsc-ture of the allocation factor. Ochar special Pennsylvania taxes, such as the realty tax, the capital stock tax, and the foreign corporation franchise tax,'shall be included, as applicable, with the operation 'and maintenance expense chargas. Mota 4_/ The incoca tax adjust =ent results from the difference betvaan amortization and tax depreciatics. DDB depreciation is based on a 336-month tax life. The undepreciated portion of the original CAPCO tax basis (whose ratio to total CAPCO basis in this casa are .841165 (CEI), .869221 (tcQ), .825712 (CE), .823157 (PP), and .833015 (TE) under DDB depreciation af ter a period of M months is the produ'et of the original CAPCO tax basis multiplied by the net tax-bass factor: CEI .841165 x (1 - 2/336) , where 1 - 2/336 = .99404762 DUQ .869221 x (1 - 2/336) , where 1 - 2/336 = .99404762 CE .825712 x (1 - 2/336) , where 1 - 2/336 = .99404762 PP .823157 x (1 - 2/336) , where 1 - 2/336 = .99404762 TE .833015 x (1 - 2/336)M, where 1 - 2/336 = .99404762 The conthly factor for tax deptaciation under DDB depreciation is the product of the DDB depreciation rata =ultiplied by the set (undepreciated) tax basis (as of the beginning of the computation month): CEI 2/336 x .84'.165 x (1 - 2/336)M = .0050069 x .99404762M DUQ 2/336 x .869221 x (1 - 2/336)M = .0051739 x .99404762M OE 2/336 x .825712 x (1 - 2/336)M = .0049150 x .99404762M PP 2/336 x .323157 x (1 - 2/336)H = .0043997 x .99404762M TE 2/336 x .833015 x (1 - 2/336)M = .0049584 x .994047624 The incess tax adjust:a::t factor is the product of the difference betvaan the amortization factor and the DDB depreciation factor, multipliad, by the fadaral ( income tax race and dividad by the complement of the incess tax rata.
MF-P. (Page 12 of 21) Nota 1,/(Cont'd) CEI (.0025 - (.0050069 x .99404762 M )) x .4965/.5035, or (.0025 - (.0050069 x .99404762M )) x .98609732 DUQ (.0025 - (.0051739 x .99404762 M )) x .5294/.4706, or (.0025 - (.0051739 x .99404762M)) x 1.124946SS OE (.0025 - (.0049150 x .99404762 M )) x .4965/.5035, or (.0025 - (.0049150 x .99404762M )) x .98609732 PP (.0025'- (.0048997 x .99404762 M )) x .5294/.4706, or (.0025 - (.0048997 x .99404762M)) x 1.12494688 TE (.0025 - (.0049584 x .99404762 M )) x .4965/.5035, or (.0025 - (.0049584 x .99404762M )) x .98609732 Switch to straight line tax depreciation (vich stretch-out of straight line tax life to the and of the amortization period occurs af ter the and of the amortiza-tion period occurs after the and of the 221st month (re=aining lif a = 199' months) . Af ter switchovar the monthly tax depreciation is the product of the reciprocal { of the re=aining life at switchover (199 months) multiplied by the algabraic diffarance betvaan net tax basis and total expected nat salvaga to be realized:
. CEI 1/199 x (.841161 x (1 - 2/336)221 .841161 x ( .05)] = .001341 DUQ 1/199 x (.869221 x (1 - 2/336)221 .S69221 x ( .05)] = .001386 OE 1/199 x (.325712 x (1 - 2/336)221 221
.825712 x ( .05)] = .001317 PP .823157 x ( .05)] = .001312 TE 1/199 1/199 xx (.833015
(.823157 xx (1 (1 -- 2/336) 2/336)221 .833015 x ( .05)} = .001328 Note 5/ Davalopment of CAPCO Tax Plant Racio Adiusteene to CAPC0 Basis CEI DUQ R E E (1) Total Invest: ant par Bocks $101,229,000 $27,321,000 $143,207,000 $24,616,000 $62,376,000 (2) Pavroll Taxas, Preparry Taxas, and Ctha Over-heads Capitali:ad par Scoks but Expansed for Tax Purposes 943,300* - 1,209,000* 506,000* 405,700* (3) 49.652 of Line (2) for . Chio Companias (468,300) (600,800) (201,400) 52.942 of lina (2) for Pennsylvanis Compacias - (267,900)
".) Invest: ant Tax Credit Applicable (5.625,000) (1,573,000) (6,829,000) (1,337,000) (3,374,300)
(5) Adjust: ant to CAPC3 Invest =ent 3 asis S 95,135,700 $25,73.8,000 $135,777,700 $23,011,100 558,300,300 l
MF-2 ( hge 13 cf 21) ( Note 5/ (Cont'd) Adjust:r.ents to CAPC0 Incoma l
!ax Basis g g .g g g (6) Land $ (883,000) $ (247,000) $ (1,823,000) $ (205,000) $ (521,000) !
(7) Allowance for Funds Used During Construction (14,496,000) (3,335,000) (22,738,000) (3,795,000)-(9,444,000) j (8) Balance of Payroll Tues, i Property Taxes, and other Overheads Capitaliz,ed par Books but Expensed for Tax Purposes 50.35% of Line (2) for Ohio Companies (475,000) (608,700) (204,300) 47.06% of Line (2) for Pennsylvania Companies - (238,100) (9) Adjusted CAPC0 Income Tax Basis (Anotti:able) $79,281,700 $22,166,000 $110,608,000
$18,773,000 $48,131,000 (10) Adjusted CAPCO Investment . * - * '-
Basis Less Land $94,252,700 $25'l501,000 $133,954,700 $22,806,100 $57,7'79,300 ( 1) Ratio of Adjusted CAPCO Income Tax Basis to Adjcsted Anortizable Investment Basis .841161 .869221 .825712 .823157 .833015 aNst Used in Total. l
/
l l l l
MF-2 (Page 14 of 21) SAI.E5 OF C\PACITY AND_rNE'tCY F110M PME IDAD 1mITS TO pURC1!ASERS CRUCE MMM ET.D l'L\NT EXilIBIT B 1 l Section I - Introduction This Exhibit pertains to all agreements related to the Sales of Capacity and Energy from the owners of Bruce Hansfield Unita No.1, 2 and 3 to Purchasers. In the event a Purchaser from a Unic does not schedule part or any of its energy 1 ontitlement as stated in the appliesble agreement, the balance of its entitlement shall remsin as espacity avsilable to the Purchaser, provided that, if the Unit is opers:ed at minimum losd required for safe operation of the Unit, the Purchaser shall be obli-gared to schedule an azcunt of energy equal to the Unit's minimum load for the hour multiplied by a frsction uf which the numerator is the Purchaser's entitlement under the applicable alrucment and the denominator is the applicable Unit's Net Demonstrated Capability. The amount of energy determined above, subject to adjustment for proportionate usc of all pisnt auxiliary power assignsble to the operation of a Unit, shall con-stitute a scheduled (billing) hk'll value (not) s's of the Unit's generator transformer lev voltage terminals. An Ownce shall schedule for delivery fram its system, and a Purchaser shall schedule for receipt into its system, an ceount of energy equal to such billing value icss the increase, or plus the decrease, in electrical losses as decennined by the Plannin5 Committee under terms of the CAPCO Transmission Facilities ( Agreement, as the case may be, incurred on its system resulting from the transmission of such energy, including losses on the Unit's step-up transformer resulting frca che trsasmission of such energy. 23ction II .'.suout. tic.a Co .s.vt. The basis for ellocating the operation and maintenance costs of Bruce Mansfield Units No. 1, 2 and 3 among the joinc Owners is set forth in Exhibit A of the Operating Agreement for these Units. This Cxhibit prescribes the method of determining the portion of that cost of an Owner which will be billed to a Purchaser. The costs to be billed to a Parchaser will be segregated as to those that are directly identified with the Pure:. iser and to those that are allocated either on an investment responsibility or a cost consumed basis. The codes for these segregations are dafined at the end of Section III. In addition to the direct costs for operating and maintsining a Unit, an Outer shall bill a Purchaser for sn approp,riste noccion of indirect overheads and esxes other than income taxes .ts defined in Section V. Secti.a III - A11oestion of Costs The operation and maintenance costs identified by FPC secount number are assigned to a Purchaser either directly or on the basis of appropriate allocscion code; as set forth in the following table: ( l
W-2 (kse 15 of 21) N. Section !?I - Allocat_!rn of Costs (Continued) Owner's Costs to be Direct Allocated to Pu chaser Basis to Allocarfon Codes
};mber Description Purchaser M SY(IR) S(IR)
OTCUTION ACCOUh"r5 500 Supervision & Engineering X Sol Puel , 501.10 Cos! X l 501.11 011*= X X 501.20 Residual Disposal ** X X 502 Stosa Expenses ** I X X 505 Electric Expenses X 306 Hisc.ellaneous seems Power Erpenses X 507 Rants X ( MAINTENANCE ACCOUhTS 510 Supervision i, :'ngineering X 511 S truc tures** X X 5 12 Boiler Plant ** X X 513 Electric Plant X 514 Miscellanous Steam Plant X FIER ACCOUNTS 562 Operation - Station Expense *** X 570 Maintenance of Station Ecuipment*** X
**Sec Operating Agreemes.: between Owners Exhibit A for breakdown of these Accounts.
***Secp-Up Transformer and connection to switch yard only.
Direct chstges vill be made to a Purchasor for fuel consumed as decarmined in (, accordance with Section IV.
MF-2 (Pkge 16 of 21) ( 5ec t ion TII - A11ncation of Costs (Continued) Code Bas is S(IR) The portion of an Duner's cost of a Unit to be billed to a Purchaser during the current month shall be (a) the no-load and start-up coal consumed plus the variable portion of coal consumed for net positive generation (as determined in Section IV) for the Purchaser during the current month dividud by (b) the total adjusted cons of casi chstged to the Owner during the current month. In the event an accountins chstge occurs in a month when a Unit did not operste, data will be used from the next preceding month for which data is available. 0(IR) The portion of an Owner's operation and maintenance expense of a Unit to be billed to e Purchaser during the current month shall be a fraction of which the numerator is the Purchaser's entitlement from the Unit as specified in the applienble agreement and the denominator is the Owner's ownership interest in the Unit r' ounded to the nearest whole megawatt. An Owner's cunership interest in a Unic shall be the product of the prevail-ing Net Demnnstrated Capabi1 Ley (NDC),of a Unit multiplied by that owner's percentage ownership in the Unit. If the capacity of a Unit is reduced dua to operating problems, the i Purchaser will be entitled to his O(l' tio multiplied by the Owner's ( entitlement of the output of the Unit (a hour to hour basis. SY(IR) The portion of an Ow? ar's cost of a Unit to be billed to a Purchaser during the current south shall be (a) the total cons of coal allocated te the Purchaser for the preceding twelve-month period divided by (b) the cons of cost charged to the Owner for the same twelve-mench period. Prior to the time that this dats is available on a twelve-month basis, available data vill be used to determine the allocation ratio. Section IV - Fuel In determining fuel costs for a Unit a Purchaser shall be treated in the same mar.nce as an owner. The fuel costs shall be allocated in proportion to the Stu's consumed to produce the kilowste-hou s taken by each of those sharing in the output of the Unit, taking into secount iSc teu's consumed during start-ups of the Unit. The Owner's share of iltu's ured during a seset-up (including Stu's which may be st.pplied by transfers of steam from secam sources other than that Unic's own secsm sourec) sud Stu's computed to havs been used during periods of synchroni:cd on-line operstion of the Unit to maintsin aero load on the Unit (the 'T" intercept, or no-load input, of the standard Input / Output equation for the Unit) shall be allocated among those sharing in the Owner's sharc of the output of the Unit in proportion to chair investment responsibilities in the Unit during the month for which s11oestion is 5cing msdt. Stu's consumed during periods of synchronised on-line operstion in excess of thuse used to maintain z.'ro load on the Unit (see preceding statement) ( shall be allocsted each hour in proportion to the net kilevatt-hours determined to have been taken from the Unit by cach of those sharing in the output of the Unit.
~~
, [ p . 9 , z. p g s. A L. p. . q :. .; .. a , 4 ;_3
g.2 (l'he,17 of 21) Section v - other Exocnser Tor billing of costs to a Purchaser, labor and material additives at current rates prevailing at Pennsylvania Power Company as adjusted from time to time, shall be added to those labor and material components of direct operation and maintenance costs of a Unit to which such rates are applicable and shall be shared by the Purchasers nn the sameo basis on which the primary Labor and material costs are shared. For billing of costs to a Purchssor Administrative, a:.d General Expenses shall be allocated to a Unit on the 5ssis of the composite three-year' moving average ratio for Pennsylvanis Power Company, esiculated at the end of each calendar year and to become effective on July 1 of the following year, in accordance with the following formula: Lal (1 + p/P) + 0 1 (Le-Le2) (1 + P/P) + (Oe-Oa2) In which: L,t and 0,g a the three-year sisms of direct labor expenses and direct other-thana labor expense, respectively charges. to the following accounts: ( 1. Account 920 - Administrative and General Salaries
- 2. Accounc 921 - Of fice supplies and Expenses
- 3. Accounc 922 - Administrative Expenses Transferred - Credit (1 + p/P) = a cost ratio by means of which those expenses directly associated with payroll (labor additives) may be added to direct labor charges.
p = t!ie three-year suas of the following lat or additives:
- 1. Payroll Taxes Federal Old Age Benefits Federal Unemployment Insursace State Unemployment Insurance
- 2. Workman's Compensation and/or Injuries and Damages (Psyroll Related Costs Only)
- 3. Employee Pensions and senefits (Account 926)
- 4. Pay for Time Not Worked
- Ex:1ude any labor additives which are included with the basic labor charges, exsepics
( of which might be "Psy for Time Not Worked" or "Psyroll Taxes." P = the three-yest sisa of the totsi payroll with which the above labor additives are associated.
Mr-2 ( mde 18 of 21) gerien v - Other Expenses (Continued) L, and O. = the three yase sums of direct labor expense and direct other-than-isbor expense, respectively, charged to all Operation and Maintenance Expense accounts except Tual (Accounts 501, 518 and 547) for the entire Company. La2 and Oa2 = the three-yest sums of direct labor expense and direct other- thsn-labor expense, respectivaly, chstged to all Administrative and General Expense Accounts 920 to 932, inclusive. The amount of Adaninistrat.ive and Canural Cxpenses to be allocated to a Purchaser durinE 3 Ft van period shall be the product of the above ratio multiplied by the total operation sad maintenance expenses, excluding Account 501 allocated to the Purchaser for that period. In addition a Purchaser shall pay an Owner, at the times payable by the Owner, amounts determined by multiplying (a) the property taxes and any other taxes except Federal Incomu Tax, payable by the Owner wich' respect to the Unit for the periods the Purchaser was involved by (b) the O(IR) ratio for that period involved. Insurance costs shall also be shared on the basis of the O(IR) ratio for the periods a Purchaser is involved. (
Mr-2 ( h c 19 of 21) ( 4 Sales et Catacit r and Icarser From Base Load Units to Pa.rchasers 3ruce Mansfield No. 2 Exhibit C Reimbursements of Working Caeital Costs I. Tuel Inventerv - Working Capital Ccst Applicable to a Purchaser of Capacity and Energy. A. Reimbursenent by Menthlv Carrvine Charte in Lieu of Deoosit The charge f or a given acnth per megawatt of capacity purchased shall be based on the Seller's total dollar balance in fuel inventory per negawatt of capacity, at the and of the tr0th in which service was rendered, and shall be calculated as follows:
- 1. Mansfield Unit #2 The product of (a) (Total Dollars in Puel Inventory for the Entire Mansfield Unit No. 2)
(b) (The Ratio of Total Megawatt Capacity Yu?rchased.co Total Megawatt Capacity of Mansfi. eld Unic No. 2) (. (c) (One-Tvelf th of the Current Annual CAPC0 Composite Capital Cost l Race, Augmented to Include Seller's CAPCO Income Tax Liability on the Equity Craponent) .
- 3. Reinbursenent bv Desosit of Working Capital The amount of the deposit shall be an appropriate portion of the dollar balance in fuel inventory, calculated as the product of the respective factors (a) and (b) in (1) or (2) above, except that this deposit vill be adjustad, not every month, but at six-month intervals and shall be calculated respectively as the average of the first six and the second six calendar months of the year.
II. Materials and Sueolies Inventerv - Working Capital Cost Applicable to a Purchaser, or to a Joint owner if M&S Inventory is not jointly owned. I A. Reimbursemen t bv Monthlv Carrvine Charte in ileu of Decosit The charge for a given sonen per megawatt of capacity purchased (or 1 shared) shall be based on the Seller's total dollar balance in mis inventory at the end of the month in which service was rendered, and shall be eniculated as follows:
- 1. Mansfield "nie #2 The product of (a) (Total Dollars in Seller's M&S Inventory at the Entire Plant)
(b) (The Racio of Total Megawatt Capacity Purchased (or Shared) ( to the Total Megvatts of Seller's Plant Capacity) (c) (One-Tvelf th of the Current Annual CAPCO Composite Capital Cost Ratc, Augnented to Include Seller's CA?CO income Tax Liability on the Iquity C:mponent)
-_ -----,. - ,, - .. - , , , . . - . , , ----.-------,----.y.,.-,,..-,.-.---.,.~,..,-.,m-,-# , .--,---w---,---, ,,-,-,r._,.,,.. - - - , y,--,,--.
MF-2 (Pkge 20 of 21) ( l
- 4. Reimbursement by Deeosit of Workins Capital The amount of the deposit shall be an appropriate portion of the dollar i balance in M&S inventory, calculated as the product of the respective factors (a) and (b) above: except that the deposic shall be adjusted at six-month intervals and not every month.
III. Mer.chiv Fuel, M&S Purchases, and Pavroll Enenses - Working Capital Cost Applicable to a Furchaser or to a Joint Owner. The deposit for a s'iven month per negawatt of capacity purchased (or shared) shall be in the amount of $600. The sonthly charge in lieu of deposit per megawatt of capacity purchased (or shared) shall be calculated as the product of $600 multiplied by (One-tvalf th of the Current Annual CAPCO Composite Capital Cost Race, Augmented to Include Seller's CA?CO Income Tax Liability on the Equity Component.) The deposit amount vill be reviewed from time to time to determine whether the. amount is still appropriate, in particular considering the M&S purchases ( required for such facilities as the scrubber and vaste disposal systesa. l ( l l 1 1
. - . - - _ , - - - ~ , , - . - - - - , . - . - - . , . . - . - - - , - - - - - . - _ - - - , - - , . - - - - - - ~ _ - .
' W -2 ( hge 21 of 21)
Sales of Cacacity and Energy Pres 3ase Icad Units to Pr.rchasers Bruce Mansfield Uni: No. 2 Exhibit D Displacement Trainist Costs Ins;;alled Capacity at CAPCO Unit No. 6 - Bruce Mansfield Unic No. 2 825,000 Ku Ownership Percent $ 236,000 Cleveland Electric Illuminating Company 28.6 Duquest.e Light Company 8.0 66,000 Chio Edison Company 39.3 324,200 Pennsylvania Power Company 6.8 56,100 Toledo Edison Company 17.3 142.700 100.0 825,000 Total The owning compsnies respective shares of the displacement training costs, based on $1.225/Kv, are: i ( Cleveland Electric Illiminating $289,100 Duquesne Light company 80,850 ' Chio Edison Company 397.145 Pennsylvania Power Company 68,723 Toledo Edison Company 174,807 Therefore, under the terms of this agreement, each purchaser, would share in these costs based on its entitlement at the rate of 1/420 of the cost basis, for each g billing month beginning with the ef fective purchase date. I l C
l
. DB-1 (Plkge 1 of 23 )
APPENDIX 6 To 3CHEDULI E Charges Acelicable to Transactions Free Davis-Besse Unit 3o.1 Pasuant to Schedule E ' This Appendix provides for speedic charges applicable to transactions made from 'Eavis-Besse Unit No.1 ' pursuant to Schedule E. Costs will be stared on a basis equivalent to that of the joint owners. The fellcwing are the components of the costs to be included. m A. Fixed Cests cf Invested Caoital*
- 1. It is expected that sales out cf production units will occur predominantly over a relatively short time period in the early
( part of the unit's life. Mcwever, this Appendix develops a censistent basis which is applicable throughout the life cycle.
- 2. Amorti:stica and tax calculaticas are based on the following:
Amorti:stica Period 35 Years (k20 Months) DDB Tax Life 28 Years (336 Months) Istimated Salvage ante -10% i Acccunting Treatment Flow Through 3 003 tax depreciation is assumed, with switch to straight line me:hed effective the first acnth is which the straight line remaining life depreciation exceeds CDB depreciation, with i
' Studies are : dezvay to review the apprepriateness of each of the four
( cwenents of Fi. zed Oests, and the conclusions could result in retre-active adjustments.
DB-1 (kge 2 of 23 ) remaining life stretened out in the straight line calculations to extend to the end cf the book ascrtization period. The switch occurs at the end of the 221st month.
- k. All fixed charges are en a month-to-month declining basis. The investment base from which fixed charges are developed shall be the CAPCO investment basis as defined in the Accounting and Procedure Manual under Procedures for Discharging Investment Responsibility.
5 The monthly finance charge rate applicable to all additions from the inservice date through the last month of the calendar year in which the construction job order is closed out shall be one- [ twelf th the annual rate calculated as the weighted average of the finance charge zstes applicable in the calendar years over which constructica expenditures are incurred, using as weights the dellars expended in the respective years. All expenditures to the closing of the job crder are to be included, using the best estimate available at the inservice date.
- 6. The finance etarge rate for crdinary additions in years subsequent to the calendar year in which the construction job crder ws closed out shall be the rate defined in the Accounting and Procedure Fanual as the rate applicable to expenditures in the year in question. Only in the case of majer capital additions mentioned in paragraph 8 vill a weighted aterage finance charge 1
as described in paragraph 5 apply.
Da-1 (rege 3 of 23) ( 7. Amerti:stion and other char 6es and adjus*.ments shall be billed each month. Ea.:h month's additions to plant in sorrice shall constitute a vintars investment. However, in order to simplify the billing proccas, the monthly vintares of any particular calendar year may be combined into a composite vintage, either on an on-going basis or at the end of the calendar year, providing the same bi11 results. Since finance charge rates are recalculated each year, vintages of different calendar years will not be composited. ^
- 8. The tax plant rstio to amortizable plant (CAPCO investment basis) shall be established from data for the total project as estimated at the inservice date, as described in pangraph 5 above. Otis ratio will be used in developing fixed charge rates for the initial placements and all subsequent additior.s; except that in the case of major capital additions, at seller's option and with buyers' concurrence, a completely new vintage ray be developed and the fixed charge factor recalculated usir4 the new tax plant ratio and other pertinent data as appropriate.
9 When a production unit, or a major capital addition such as described in pangraph 8, is placed in consnercial sorrice the first fixed charge billing shall begin effective with the inservice date. For subsequent month-to-month additicas the billing shall begin with the first f.111 calendar month after the addition is sade. 1 10. Where sales are initiated out of an eadsting production facility to i a new buyer, a single-vintage CAPCO investment basis may be calculated, with as appropriate adjustaant for depreciation 1". curred to date. The amorti:stion component of the fixed charge factor vill be calculated on the 'sasis of re* *t e Jife of the original amorti=stion period, or by mutual agreement.
DB-1 (Pese k of 23) l (
- 11. The specific fixed charge rate for Davis-Besse Unit No.1 is developed in Exnibit A.
t
- 3. Ooerstine and Maintenance Costs
- 1. The methods cpecified in the attached iMtibit B shall be used to allocate all costs, including overheads directly or indirectly applicable to the operation and maintenance of the opersting corpany's ownership in such unit between it and the Purchaser (s ) .
- 2. The operating coarpany will prepare, revise from time to time as appropriate and fur .ish to the Parchaser(s) an annual estimate of the amount to be billed by months (a) for the cost of energy during the terin of the purchase from a unit, and (b) any other costs which shall accrue during this period. The i Opersting cm vill fumish any reasonable request for estimates for longer periods if required by the Purchasers.
- 3. The operating company vill maintain the recortis used in the determination of the Purchastr(s) bill in order that the Purchaser (s) and their independent auditors shall have access at all reasonable times to such records and the operating company will fumish copies of such records as requested. The opersting company shall preserve and maintain the originals of such records for at least euch periods of time as the Purcha.ser(s) any request, having in mind the requirements of
- regulatory authorities having jurisdiction, and the policies
.nd ,rs 1ces of the mes .m spect t. oe ,etemon c,
( . cords. I ( l
DB-1 (Pese 5 of 23 ) ; 16 The cost of preparing, pnserving and saking copies of such budgets, records and accounts shall be borne by the companies ia proportion to their respective capacity entitlements, except that any costs incurred at the special request of the Parchaanr(s) shall be borne by them.
- 5. The operating c:npany shall have special audits conducted with respect to the matters provided for in this Appendix, either internally or by independent auditors, according to such i
progress and proceiures as agreed to be necessary to conform to the auditing requirements of each Company, and shall furnish copies of the reports of such audits to the Purchaser (s). The cost of aski=g such audits, including any participation by the auditors of the Purchaser (s) agned to be desirsble and I necessary, shall be shared by the Companies in relation to the current capacity entitlement rktio. The Rs.rchaser(s) may, at their own expense, anke such further audits, using their internal or independent auditors or both, as it may be deemed desirsble. e
- 6. If requested by the Purchaser (s), the operating company will aske such ev=-r%=tions, analyses, or studies as would go to support the reasonableness of the spec 111e costs so allocated, er provide a basis for modification to achieve such reasonableness with respect to either the specific or the indirect cost allocaticas. Sbarsble costs which are incurred by the Purchaser (s) shall be accumulated and billed on a direct charge )
basis from specific ncords or nasonable estimates, with i applicable additives as agreed upon by the Companies.
i as-1 (Pase 6 of 23) l
- 7. Except as otherwise provided herein, the accountinC methods and practices normally in use at the time by each of the Companies in determining and assigning Operating and Haintenance costs, :
ge"ers11y, are to be used by such Company for the purposes , of tais Appendix unless othe: vise a6 reed, provided such ( sethods and practices are consistent with sound accounting ; prsetices.
- 8. The operating company will b111 the Purchaser (s) for its share of property, franchise, business or other taxes applicab1e to !
I I their share of the unit, specifically identifying these items on the invoice when such taxes are payable by the operating company. < To the extent that such tares are charged to the operating i i expenses of the Unit, because it is impractica1 or inequitable ! i ( to segregate the., they wu1.e buze4 - , art of the nor.at j t opersting expense of the Unit. l 9 M soon as possible after the close of each calendar month, ! t preferably on or before the 8th working day of the fouoving l i i month, the operating company shall adrise the Purchaser (s) of i its proportionate share of estinated operating expenses, fixed : i charges, displacement training costs, and verking capital for i i the preceding month. l
- 10. As soon as possible after the cicae of each calendar month, yrsterably on or before the 25th of the following month, the operating company chall prepare and deliver an invoice to the ,
i t Purchaser for its share of actual costs for the }, receding month. The amount billed vill be due and payable upon receipt t t l . . - - - - _ - . . - - - - - - . -- _.-----..-I
DB-1 (kge 7 of 23) L' of invoice and win be subject to a late payment charge if not received within 15 days from date of invoice. C. '4crking Cacital It is recognised that the operating compny undertakes certain obligations to provide expenditures in advance of compensation by the purchasers of capacity and energy. These purchases include but any not be limited to payroll, fuel and material and supplies purebares; and coal and material and supplies inventeries. A reasonable anewnee for this investment in verking capital funds shall be censidered a shareable cost to be compensated for as set out in letail in Exhibit C. ( D. Disclacement Training Costs The CAPCO Compnies have agreed that the costs which an operating company will incur in training personnel at existing sts.tions in order to be able to transfer experienced personnel to a cev CAPOO generating unit should be shared by the joint cwners. P.trehasers cf Capacity and Energy shall also share in these ecsts.
- 1. Ter each new CAPCC unit, the cost basis cf il/lC4 of the installed capacity is determined to be a reasonable esti:nate cf the present-day cost vnich a cespany will incur within its existing plants as a esult cf assigning experienced company personnel to a new CAP'O
( generating unit. Installed capacity fer this purpose is defined as the .*!et Cenenstrated Capability of the CAPCC generating unit.
DB-1 (Bage S cf 23)
- 2. It is recognized that these costs will increase as labor costs incressa. Therefore, this cost determinatica factor cf $1/Y.W shall be subject to escalation for units planned to be in service after Davis-Besse No. 1 based on an index of the composite labor costs of CAPCO Companies as agreed to by the CAICO Accounting and Tinance Cesunittee using 1972 as the base year equaling 100.0. The index to be applied is that calculated for the period two years prior to the actual inservice,date for fossil-fired generating units and the. period three years prior to the actual in-service date for n.ub. ear ~ units.
3 The purchasers of capacity and Energy shall share in these costs for the periods they are involved. An amount of 1/h20 of the ( cost basis for each 103 of the purchasing company's capacity entitlement shall be included in the monthly billing.
- h. The cost basis provided for herein shall be shown in Exhibit D.
t i 1
l 08-1 (hge 9 of 23) Sales of Catacit7 and Enersy Free Base Lead Units to P2rchasers l Davis-Besse Unit No. 1* ; I NtT'ITT A F3E3 CCSTS OF I37ESTID CAPITAL **
"he .cnthly fixed charge for a vistage addition shall be calculated as the s'.gebraic sum of the f:11owing cospe ents:
A. Amorti:stion. 1/ The product of .oc261905 sultiplied by the ad*usted CA?CO investmeEt base exclusive of land. (Line#10ofNote5/)
- 3. Finance Charge. 2] The p oduct of .oc850833 (Cn) multiplied by the net u=amertised CAPCC investment base as of the begissi=g of the scath being billed.
i C. Gross Icecae "ax. }/ The product of .Gok26154 (CII) sultiplied by the net unascr:1:ed CAPCO investment base as,of the beginning of the scath ( bet =g b uted. the difference cbtai=ed by 3, Incese subtracting Tax (a) Adjustment. k/ Theproductcf(q)(whereMisthenumberof
.o0423f6 (CII) x .99hch762' amertizatice acuths elapsed prict to the month being billed), if the acuth being billed is prior to the 222nd =enth of service, er (b)
.00143357 (CEI), if the month being bited is the 222nd scath or later, frca (ci .0C261905 sultiplied by (H ) 92307692, and the result mul-tiplied by (nI) the vintage gress CAPCo i= vestment base exclusive of land.
** Studies are underway to review the appropriateness of each of the four componente of Fixed Costs, and the conclusicca cculd result is retroactive adjustments.
.: I?.CC.ASE C'aESFl? iT CA?CO CCG.C: CC-51.365: 5 L3.626 3 cts "1/ "he =c thly ascrui:stics rate (depreciable preper caly) is based en a h20-ec :h ascrti:=. tion ;eriod and a negative IC$ salvage rate.
1.lo/h20 = .CC261905 i . I i I *ta.a for "I sales cai/, since CI is caly Sener. l
3-1 (Page lo cf 23) i 2/ The acethly finance charge rate applicable to Dar.s Besse No. 1 facilities
~
placed is service in 1977 is: CII .1021/12 = .00850833 Where .1C21 is the weighted average of the annual finance charge rate's applicable in the calendar years ever which the facility was ccastructed, usi s the dollars expe=ded in the respective years as weights: Year Amount Ex: ended Percent of Tetal s a poo n= > crI crI 1969 & Frier $ 729 .222%
"S 7,164 2.177
;t -
18,164 . 5 52o 1972 34,054 13 3L8 1973 52,258 25.880 l'r74 39,83k 12.105 ( l'i?5 ho,7h8 12 383 1976 81,275 21. 698 1977 Sh,SL6 16.667 Total $ 329,072 100.0005 Applicable Compenent Return Pate (b) Eent.s Pref. ,Cem. Total 969 & ?rier 3 22 0.58 5.20 9 00 970 h.07 0.69 k.74 9 50
;71 L.90 0.70 h.ho 10.00 772 h.27 0.74 h.24 9 25 27 3 h.13 0 90 3 97 9 00 7L L.19 1.01 L.05 9 25 75 h.93 1.29 k.28 10.50 76 5 23 1.50 L.52 11.25 7 k.73 1.38 L.89 11.oc(c)
Total L.67 1.16 L.38 10.21 (c.-) .
) ::cindes ce==:n facilities and land applicable to avis 3 esse :To. 1, a=d aisc substation facilities asscetated with pr:ducti:: pla:t under -
the joint ov:ership e. gree =ent. {
. An:ual values as derived frem preceding calendar year data. C:=posite r* tes derived usi ; a:nual expe=ditu: ss as weights, er use c a prelisi:a:/ basis cel/.
2B-1 (Page 11 of 23) Note g The acnthly gross incoes tax charge rate is the product of 1/12 x .o554 (CE) multiplied by the federal income tax rate and divided by the cosplement of the income tax rate; where .o55k is the total equity component of the annual finance charge rate: Cn 1/12 x .c55h x .kS/ (1 .h8) = . ooh 2615k. Neta y *he ine==e tax acustaant results frem the difference between amerti:stion and tax depreciatien. CD3 depreciation is based on a 336-oonth tax life.
"Se undepreciated portion of the original CAPCo tax basis (whose ratio to total CAPCC basis in this case is .776708 (CII) under 2 3 depreciation after a p ied of M months is the product of the original CAPCC tax basis multiplied by the net tax-base facter:
CrI 7767c8 x (1 - 2/336)M, where 1 - 2/336 .9ct.ck762 The acuthly facter fer tax depreciation under DDB depreciation is the pro-duct of the DDB depreciation rate multiplied by the net -(undepreciated) tax basis (as of the beginning of the computation month):
- 1
( CEI 2/336 x .7767c8 x (1 - 2/336)M = .ooL62326 x .99hok762 The income tax adjustaent facter is the product of the difference between the azertination factor and the DDB depreciation factor, multiplied by the federal income tax rate and divided by the cceptement of the income tax rate: (.00261905- (.ock62326 x .99hck762 M )) x .h8/.52, or Cn M (.co2619c5- (.coh62326 x .99hok?62 )) x .92307692 Switch to straight line tax depreciatics (with stretch-cut of straight line tax life to the end of the amertination period occurs after the end Of the 221st senth (ressining life = 199 months). After svitchever the acnthly tax depreciation is the product of the recip-recal cf the remaining life at switchover (199 months) =ultiplied by the algebrsi: difference between net tax basis and tctal expected set salvage to te reali:ed: CII 1/199 x (.7767c8 x (1 - 2/336) 221 .776708 x ( .10)) =
.001k3357 l
l l
DB.1 (.%ge 12 cf 23) ( Note f/ De n lopment of CAFC0 Tax Plant Ratio Adjustment to C.UC0 3 asis Cn (1) Total I:w stment per Books $329,071,806 (2) 7ay-c11 Taxes, Property Taxes, a=1 Other Overheads Capitalized per Ecoks,but Ixpensed for Tax P.trposes Total = $1,195,076 --- (3) kS5 et Line (2) for chio owners (573,636) (k) Investment Tax credit Applicable (16,L70,n7) (5) Adjusted to CAPCO Investment Basis ,$312,028,053 Adjustse:ts to CAPCO Inecce Tax Basis (6) Land 4 (399,394) (7) Anova= e fer Fu=ds Used During Coch.~ ction (68,962,787) (8) Sala =ce of Payron Taxes, Property Taxes, and Other Cverheads Capit-alized per 3ccks tut Expensed fcr Trx Pur;cses 52% of Line (2) f:r Chio owners (621,LL0) (9) Adjusted CAFC0 !=cces Tax Basis
.s(Am:rtizable) $2k2,0kk,L32 (10) Adjusted CAFC0 !=ves*aent Basis Less Land $3n ,626,659 (2) F,atio of Acjusted CAPCO Income "ax ! asis to Adjusted Ascrtizable Invest =ent 3 asis 7767C8 - _ . _ _ _ _ ._. - - - - . . . ~ - , _ _ - _ . . . . - _. - . - . . - _ -
DP.-1 N (. ge 13 of 23) l i SALES OF CAPACITI AND C:ERGY FROM BASE LOAD UNITS TO PURCHASERS: DAVIS-BESSE STATICF - UNITS NOS.1, 2 AND 3 i Exhibit B Sectien I - Introduction This Exhibit pertains to all agreements related to the Sales of' Capacity' and Energy from the owners of Davis-Bessa Units Nos.1, 2 and 3 to Purchasers. In the event any Purchaser does not schedule part or any of its ensrgy entitlement as stated in the applicable agreement, the balance of its entitlement shall remain as capacity available to the Purchaser, provided that, if the Unit is operated at minimum load required for safe operation of that Unit, the Purchaser shall be obligated to schedule an amount of energy equal to that Unit's sinimum load for the hour, multiplied by a fraction of which the numerator is the Purchaser's entitlement under the applicable agreement and the denominator 1s the applicable Unit's Net Descastrated Capability. The amount of energy determined abcVe, subject to adjustment for proportionate use of all plant auxilis.y power assign-abic to the operatien of each Unit, shall constitute a scheduled (billing) i ( EH value (net) as of each Unit's generator transformer high voltage tersinals. Each Cunct shall schedule for delivery from the Units, and each Purchaser shall schedule for receipt into its system, an anount of energy equal to such billing vclue less the increase, or plus the decrease, as the case may be, in electrical losses incurred on its system resulting l from the transmission of such energy as determined by the Planning Cosmiittee under terms of the CAPCO Trans ission Facilities Agreement. Section II - Accounti: g Ccncents The basis for allocating the cperation and naintenance costs of Davis-3 esse Units Nos.1, 2 and 3 between the joint owners is set forth in Exhibit A of the Operating Agreement for these units. This Exhibic i pre. scribes the nethod of determining the portion of that cost of an Cvner which vill be billed to a Pure.% er. The costs to be billed to a Purchaser vill be segregated as to : hose that are directly identified with a Purchsser and to those thcc are alloc ted either on an invest =ent responsibilit/ or a fuel consu=ed basts. The codes for these segregations are oefinad at the and of Section III. the direct costs for operating and naintaining a Unit, an In addition r2 Owner shall bill a Purchaser for an appropriate portion f indirect [ overheads and taxes other than income taxes as defined in Section V.
1 l l l 03-1 (Phge ik of 23) Section III - Allocation of Costs The operation and maintenance costs identified by TPC account number are assigned to a Purchaser either directly or on the basis of a)propriate allocation codas as set farth in the following tabla. Direct Owners Costs to be Basis Allocated to the Purchaser Account To Allocation Codes Number Purchaser O(IR) HY(IR) OPERATION ACCOUN"5 517 Supervision and Engineering I 518 Nuclear Tual Expense I I 519 Coolants and Water
- I 519 Coolants and Vater
- 520 Steam Expenses
- I 520 Steam Expenses
- I 523 Electric Expenses 1 524 Misc. Nuclear Power Expenses I 525 Rents I MAINTENANCE ACCCUNTS 528 Supervision and Engineering I k I 529 Structures 530 Reactor Plant and Equipment
- I 530 Reactor Plan: and Equipment
- I 531 Electric Plant X 532 Misc. Nuclear Plant I OTHER ACCCUNTS 562 Operation - Station Expenses I 570 Maintenance of Station Equipment x
- See Exhibit A of the Davis-Besse Station Operating Agreement fer breakdown of these acceunts.
Direct charges vill be made to a Purchaser for fuel consumed as determir.ed in accordance with Section IV. Code Basis 0(IR) The portion of an Owner's operation and naintensner costs for a Unit to be billed to a Purchaser for the current month shall be a fraction of which the numerator is a Purchaser's entitle-sent from the Unit as specified in the applicsble agreement and the denominster is an Owner's ownership interest in that Unit, both figures rounded to the nosrest whole nessuste. An (, Owner's evnership interest in a Unit shall be the product of the prevailing Net Demonstrated Capability (NDC) of a Unic multiplied by that Cuner's percentsge ownership in the Unit.
t Code Basis DB.1 (Ptge if of 23) k If the capacity of a Unit is reduced by operating problems, a Purchaser will be entitled to his 0 (11) ratio multiplied by the Owner's entitlement of the output of the Unit on an hour to hour basis.
\
IT(IR) The portion of an Owner's cost for a Unit to be bl. led to a Purchaser for the current month shall be a fraction of which the numerator is the portion of the BTU input to the main unit turbine used to produce the kilowatt hours of energy taken from the Unit by the Purchaser during the preceding 12-month period and the denominator is the portion of the BTU input to the main turbine used to produce the kilowatt hours of energy taken from the Unit by the Owner during that same preceding 12-month period. Prior to the time that this data is available on a 12-month basis, available data will be used to determine the allocation ratio. Section IV - Tuel In determining fuel costs a Purchaser shall be treated in the sane manner as an owner. The following basic principles shall govern the calculation of depletion (amortization) of fuel assemblies installed in the reactor for heat production and the billing of fuel costs to Purchasers unless The Public Utilities Ccamission of Ohio determines that other calculatica methods ( and/or formuise should be used. In such event, this Section IV will be revised to reflect these P.U.C.O. requirements.
- 1. Nuclear fuel assemblies shall be considered to be producing heat only during periods of zero or positive net generation.
- 2. During periods of negative net generation, it will be considered that installed nuclear fuel assemblies are not producing hest and are not thus consumed. During periods of negative net generation, records cf station service electric energy supplied by the system shall be maintained and the participants in the Unit shall be invoiced for such electric energy in proportion to their investment responsibilities in the Unit at the operating owner's system average, production cost (including net purchased l
power costs) during the current calendar month adjusted to a:.- clude the output and cost during the current calendar month of the Unit to which such scstion service energy was supplied.
- 3. During periods of zero or positive net generatien, the conpo-nents of consumption of hest from nuclear fuel assemblies shall be considered to consist of a fixed heat consumption component and a variabic heat consumption component. The compenents of heat consumption are illustrated by the current Input / output curve for each Unit as aneced to by the owners.
The fined portion of heat consumption consists of the heat produced by the resctor required to supply station service (. electric energy plus heat losses in the plant.
- B-1 (Page is cf 23)
~
4... During periods of zero or positive net generation, the fixed and variable portions of the total unit heat consumption shall be calculated on an hour by hour basis. The fixed portion of the unit heat consumption shall be the product of" service hours ace.nsulated during periods of zero or positive net generation times the fixed unit heat consumption as indicated on the current Input / Output curve for each Unit as agreed to by the Owners. The variable portion of the unit heat consump-tion shall be the total net main unit generation in Mv hr/hr coverted to BTU /hr excluding the fixed unit heet consumption utilizing the relationship between HW hr/hr , versus BTU /hr as represented on the current Input / Output curve for each Unit as agreed to by the Owners. The total unit heat consumption shall be the sum of fixed and variable portions of the unit heat consumption. The portion of the cost of nuclear fuel consu. sed to be considered to be attributable to fixed unit heat consumption shall be the total cost of nuclear fuel con-sue.=d times a fraction the numerator of which is the monthly fixed unit heat consu=ption and the denominator of which is the total monthly unit heat consunrption. The portion of the cost of nuclear fuel consumed to be attributable to variable heat consumption shall be the total cost of nuclear fuel consumed minus the portion of the cost of nuclear fuel con-sumed attributable to fixed unit, heat consumption. ( 5. In calculations using amortization in proportion to main unit heat consumption for decernining the cost of nuclear fuel consumed, Toledo Edison shall take into account the original acquisition cost of the materials and services required to provide the fuel as originally installed, the predicted total heat output of the assemblies and the estimated net value of salvage materials. TE shall calculate such cost of nuclear fuel consumed using methods and/or computer codes generally considered acceptable by the CAPCO Companies for this purpose.
- 6. Fixed nuclear fuel expense shall be allocated among psrticipants in a Unit in proportion to their investment responsibilities in the Unit during the south for which the allocatien is being made. Variable nuclear fuel expense shall be allocated among those sharing in the output of a unit in proportion to the BTU consu=ed to produce the kilowatt hours of energy taken from the Unic by each participant during the month.
- 7. For owned nuclear fuel, the total monthly fixed and variable nuclest fuel expense for a unit shall be determined by the fc:sula FC C
=Ej (A e- 5,) .
i j E ! g ( vhere: FC = Nuclest fuel expense during the current accounting month.
. _ - _ . _ -- . - . - - _ . . _ - _ . -_--~__ - _,-- - , - _ . - - - - -
DB-1 (Page 17 cf 23) ( ., = n. ener y. in .Tu, ,roduced during the current accouncing month. Eg = The energy, in BTU, expected to be prodG'ced from the beginning of the current accounting month until the estimated and of life of the fuel.
= The unamortized value of the fuel as reflected by A"
the differonce between the balances in' Accounts ; 120.3 (Nuclear fuel assemblies in reactor) and 120.5 I (Accumulated provision for amortization of nuclear fuel assemblies) at the beginning of the current accouncing month. S g
= Anticipated salvage value of the fuel with related deductions including but not limited to shipping, retrocessing and vasta disposal costs.
Such cost will be separated into fixed and variable components as described in 3 above. ,
- 8. The total monthly fixed and variable nuclear fuel expense for !
leased nuclear fuel consumed is composed of A) a burnup expense related to energy resource consumption B) amortization ' of accumulated deferred expenses not related to burnup pertain-ing to the period prior to the beginning of commercial operation { of the leased nuclear fuel and C) sonthly payments not related to burnup made by the Cuners to the Lessor pertaining to the period af ter the beginning of coussercial operation of the leased nuclear fuel. A, B. and C will each be separated into fixed and variable components as described in 3 above. l r i A. The monthly burnup expense shall be calculated as follows: Bg" @c ~ f f I i where: f f B g
= Burnup expense for the current accounting month. ;
i E,
= The energy, in BTU, produced during the current i accouncing month. ;
I Eg = The energy, in BTU, expected to be produced from the l beginning of the current crecunting month to the end } of lif e of the fuel. > l t
= The Lessor's not invesenent (acquisition cost as i C* ;
defined in the lease agreement less burnup expenses Prior to the current accounting acnth) at the begin- .( ning of the current accouncing month. i
Ds-1 (page le cf 23) ( S = Anticipated salvage value of the fuel with related g deductions including but not limited to shipping, reprocessing and waste disposal costs. l l
- 3. The amortization of accumulated deferred expenses not '
related to burnup pertaining to the perind prior to the beginning of cotsnarcial operation of the leased nuclear fuel shall be calculated as follows: i PDA C
=I (D )
l P Eg where: The current month amortization of deferred expenses c PDA* = not related to burnup pertaining to the period prior to the beginning of commercial operation of the leased nuclear fuel. E, = The energy, in BTU, produced during the current accounting month. Eg = The energy, in BTU, expected to be produced from the beginning of the current accounting month to the end ( of life of the fuel. D = The unamorti:cd portion at the beginni: g of the p current accounting month of the deferred expense not related to burnup pertaining to the period prior to the beginning of commercial operation of the leased nuclear fuel. C. Monthly payments not related to burnup made by Owners to the Lessor pertaining to the period after the beginning of commercial operation of the leased nuclear fuel shall be calculated as follows: HPL e
= R e
(Cc ) 4 where: The current payments not related to burnup made by MPL* = the Owners to the Lessor. R*
= The current lease rate as defined in the lease agreement expressed as the decimal equivalent of percent per month.
C = The Lessor's net investment (acquisition cost as
'(
i defined in the lease agreement less burnup expenses prior to the current accounting month) at the begin-ning of the current accounting month.
DB-1 (Pege 19 of 23) Section V - Other Expenses For bining costs to the Purchaser, labor and asterial ads'it,1ve costs at current rates prevailing at The Toledo Edison Company as adjusted from time to time shan be added to the labor and material components of direct operation and maintenance costs of Davis-Besse Units Nos.1. 2 and 3 to which such rates are applicable and shall be shared by Purchasers on the same basis on which the primary labor and material costs are shared. In addition, an allocation will be made of Account 556 System Control and Load Dispatching costs related to production, and Acceunt 557, Other Production Expenses. These costs would be allocated to Davis-Besse Units Nos. 1, 2 and 3 on a direct basis where a direct relationship exists, or on a not generating capability ratio when a direct relaticaship does not exist. Account 556 will include only those load dispatching costs incurred by TE that are attributable to Davis-Besse Units Nos. 1, 2 and 3. Included in Account 557, Other Production Expenses, are such items as insuranca premiums and recoveries and other production expenses not directly assignable to the other production accounts. These costs included 1- Account 557 say be charged directly where a direct relacion-ship exists or, if not, they may be allocated on a net generating capa-bility basis. The invoice will identify amounts bined that were included in Account 557. For bining costs to Purchasers, administrative and general expenses shall be allocated to Devis-Basse Units Nos. 1, 2 and 3 on the basis of the three-year moving average ratio for The Toledo Edison Company cal-culated at the end of each calendar year to bacone effective on July 1 of the following year in accordance with the following for:sula. L,g (1 + p/P) + 0,g (L,-La2) (1 + p/P) + (0,-Og) In which: Lg and 0,3 = The 3-year suas of direct labor expense and direct other-than-labor expense, respectively charged to the following accounts:
- 1) Accouac 920, Administrstive and genersi salaries
- 2) Account 921, Office supplies and expens;es
- 3) Account 922, Administrative expenses trar.aferred
- Credit (1 + p/P) =
A cost ratio by means of which those expenses directly associated with the payroll (labor additives) may be added to direct labor charges. ( I
DB-1 (Phge 20 of 23) y = The 3-year sua of the fonowing labor additives:
- 1) Payron Tazes Federal Old-age Benefits Federal Unemployment Insurance State Unemployment Insurance
- 2) Worlamen's Compensation and/,or Injuries and Damages (Psyron related costs only)
- 3) Imployee Pensions and Benefits (Accounc 926)
- 4) Pay for Time Not Worked Exclude any labor additives which are included with the basic direct labor charges, examples of which might be " Par for tima not worked" or "Payro n taxes". .
P = The 3-year sum of total payroll with which the above labor additives are associacad.
=
L, and 0, The 3-year suns of direct labor expente and direct other-than-labor expense, respectively, charged to an operation and maintenance egense accounts l except Tual (Accounts 501, 518 and 547) for the entire Company. L d and 0,2
= The 3-year suas of direct labor a= pense and direct other-than-labor expense, respectively, charged to an operation and General Expense Accounts 920 to 932, inclusive.
The amount of administrative and general expenses to be allocated to Furchasers during a given period shall be the product of the above racia multiplied by the total direct operation and asincanance expenses, excluding Account 518, anocated to a Purchaser for that period. In addition, a Purchaser shan pay to the Owner at times payable by the Owner amounts determined by multiplying (A) the property taxes and any other taxes, except Federal Income Tax, payable by the Owner with respect to the Unit for the periods a Purchasar was involved by, (B) the O(IR) ratio for that period. + (
08-1 (Page 21 of 23) Sales of Cameity and Inerry Fra Base Load Units to Purassers , i Davis-Besse Unit No. 2 j EXII3IT C EIOGURST.4 INT OF WORKING CA7 ITAL CCS"15 I. Acec.=ulated referred Fuel Ex;enses - Working Capital Costs Applicable to a Purc:sser of Capacity and Energy. A. Rei=b'esementi by Menthly Carryi:g Charge in Lieu of Deposit Se c:arge for a given zenth per megawatt of capacity purenamed shall be based en the Seller's total dollar balance in deferred expenses fer leased nuclear fuel per negawatt of capacity, at the end of the month in which service was rendered, and shall be calculated as follows:
- 1. Davis 3 esse Uoit No. 1 Se Product of.
'( (a) (Total Dollars in Deferred Nel Irpense for Davis Besse Unit No. 1 Nuclear Fuel) (b) (The Ratio of Tctal Megawatt Capacity Purchased to Tots 1 Megawatt Capacity in Service at Davis Besse Unit No. 1) (c) (Cne Twelfth of the Current Annual CAPCO Composite Capital Cost Rate, Augmented to Include sellar's CAPCC Income Tax Liability cu the Iquity Ccapacent)
- 3. Rei= burse:ent by repcsit cf Worki:T Capital The accu = of the deposi; shall 'ce an appropriate ;crtion of the dollar balance in accumulated deferred fuel expenses, calculated as the product
" "a respective facters (a) and (b) above. Such deposits are to be
! .aacrti:ed scathly as outlined in Iztibit A, Section IV, principle 63 of this cperati=g agree =ent. (
l l I:B.1 (Page 22 cf 23) l l l
- 3. Materials and Supplies Inventory - Working Capital Cost Applicable to a PurcJaser, or to a Join: Owner if M&S Inventory is not jointly owned.
A. Reinbursenent by Monthly Carrying Charge in Lieu of Deposit The enarge for a given month per megawatt of capacity purenssed (or shared) shall be based on the Sener's total dollar balance in M&S inven: cry at the end of the aceth in which service was rendered, and shall be calculated as fonows:
- 1. Davis 3 esse Unit No. 1 Se Product of (a) (Total Douars in Sener's H&S Inventory at the Intire Plant)
(b) (The Ratio of Total Megawatt Capacity P'a - chased (or shared) to the Total Megawatts of Se ner's Plant capacity) k (c) (Coe Twelfth of the Current Annual CAPC0 Courposite Capital Cost Rate, Augmented to Include Sener's CAPCO Income Tax Mability on the Equity Component)
- 3. Reinbursement by Deposit of Working Capital The amount of the deposit shall be an syr up late portion of the dollar balance in M&S inventory, calenlated as the product of the respective factors (a) and (b) above; except that the deposit aban be adjusted at six month intervals and not every accth.
IZ. Menthly P.tel, M&S Prebases, and Payrell Exoenses - Working Capital Cos Applica'cle to a Purensser or to a Joint Owner. Se deposit for a given centh per megawatt of capacity purchased (or shared) l sta n be in the amou=t of $600.
"he =enthly charge in lieu of deposit ;er negawatt of capacity purchased (or shared) sban be calculated as the product of $600 multiplied by (Cne Twelfth of the Current Annual CAPS 0 Composite Capital Cost Rate, Augnented to Include Sener's CAPCO Income Tsz Mability en the Iquity Component.)
Se deposit amount will be reviewed from time to time to deter =ine whether er not tht amount is stin appropriate.
ns-1 (ms. 23 of 23) ( Sales ef Catacity and Enerr/ Frce Base Load Units to hretasers Davis-Besse Unit .%.1 IXEDIIT D DISFIACDETT TRAIT. DIG COSTS Installed Capacity,at Oavis Besse No. 1 C06,000 W Cveership Cleveland Ilectric I"*Nting Co. 31 38f, Toledo Idison Co. k8.626 100.01, ( The owning companies' respective shares of the displacement training costs, based on $1.00/W, are: Cleveland Electric I11unicating Co. $M5,500 Toledo Idison Co. $hko,5co Therefore, t, der the terms of this agreement, each purchaser vill share in these nats, based on its entitlement at the rate of 1/k20 of the cost basis, for aasch billing month beginning with the effective purcha.se date. ( l l l
CAPCO BASIC OPERATING AGREEMENT SCHEDULE F OUT-OF-POCIET COST Where referred to in this Agreement, the Out-Of-Pocket Cost of supplying power in each hour shall be the cost incurred in the supply of the highest cost power available on the supplying Party's system during that heur, including power purchased from non-CAPCO party systema as well as power generated by a Party's own generation resources, after all sales with a lower pricing priority (higher cost) have been accounted for. The j components of Out-Of-Pocket Costs shall include but shall not be limited to the following: Operating Capacity Costs Start-up and shut-down costs (boiler and turbine) No load cost (boiler and turbine) Maintenance cost (boiler and turbine) Charge (or credit) for increased (or decreased) cost of energy generated by the Party associated with the transaction i Incremental labor costs l l
I Applicable incremental taxes 1 Miscellaneous incremental operating costs Energy Costs s Incremental fuel cost ' Incremental transmission losses Incremental labor cost - Incremental maintenance cost -' Applicable incremental taxes [ Miscellaneous incremental operating costs s
.' -s
( . Purchased Power s All costs, excluding demand charges, paid to a non-k:APCO party system i for power purchased. \.
- s. _ , , .
4 $
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is ,
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l l l l CAPC0 BASIC OPERATING AGREEMENT SCEDUIZ G EMERGENCY PO ER Section 1 - Services te be Rendered 1.1 In the event of a breakdown or other emergency in or on the systes
- of any Party involving either sources of power or transmission facilities, or
' both, impairing or jeopardizing the ability of a Party to meet the Load of its system, each Party shall deliver to such Party Emergency Power that it is re- l quested to delive:r. Such Emergency Power shall be provided (1) from unloaded 4
generating facilities, either on or off line, to the fullest extent neces-
; sary from each supplying Party's systes, or (2) from non-CAPCO party systems
( s
' to which the supplying Parties are interconnected. No Party is obligated to terminate any delivery of power (excluding economy transactions) to any other system in order to provide Emergency Power, but a Party is obligated to ter-air $teeconomytransactionsandsupplyanyexcesspowerfromitsownsystes and,to purchase power, if available, from any other system with which it is iyterconnected in order to provide Emergency Power. A supplying Party shall l
cot be obligated to deliver such Emergency Power which, in its sole judgment, it c nact deliver without interposing a hazard to its operations or without impairing or jeopardizing its Load. Emergency Power shall not be requested or supplied in lieu of CAPCO Back-Up Power. s 4 l.2 If at any time the record over a reasonable prior period shows clearly
, that any Party has failed to deliver Emergency Power, or has regularly requested s-f\ delivery of Energency Power, any Party, by written notice given to the other s
4 b
,,' ang
% D
. . - - - - --n. ,- ___ . - - - - . . - - _ . - - - _ , , _ _ _ _ _ _ , , , _ . . . - . , , , , , . , _ _ , , , _
i i t ( Parties, may call for a joint study by the Parties to determine the burden, if any, that such Party may be placing upon any other. If it should be found that such Party is placing an unreasonable burden upon the others, the Party causing the burden shall take such sensures as are necessary to remove the burden, or the Parties shall enter into such arrangements as shall provide for equitable compensation to the Party (s) being burdened. Section 2 - Compensation 2.1 Emergency Power shall be compensated for by return-in-kind or at the option of the supplying Party by the payment of the Out-of-Pocket cost of providing operating capacity or operating capacity and energy, plus any demand charge paid to a non-CAPCO party system for power delivered hereunder; k plus 10% of the Out-Of-Pocket Cost for Emergency Power provided from the supplying Party's system; plus
$1.00 per mW-hr for Emergency Power purchased from a Party or a non-CAPCO party system.
i l l
( JULY 31, 1981 LETTER TO THE FEDERAL ENERGY REGULATORY COMMISSION TRANSMITTING A?ENDMENT NO. 1 TO THE CAPCO BASIC OPERATING AGREEMENT AS AMENDED SEPTEMBER 1, 1980 ( Attachment D 0RIGINAL
o - -
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. .. . * ? . e P.o. Box 5000 CLEVELANo oHlo 44101 . TELEPHONE (216) E'2 9'800 - ILLUMIN ATING BLoG. - SS PUS'lO . SoVARE
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, , . . Se.-ving The Best Location on thn Nations
{~; . . - r:: * * ;;. Ju1y(3%,..-[198'l' b,,.). i '.O Federal Energy Regulatorf Co= mission 825 Capitol Street, NE
'w'ashington, DC 20426 I
?
Attention Kenneth F. Plumb I Secretary Gentlemen-f On behalf of each of the following listed Co=panies, we hereby transmit for filing twelve (12) copies of Amendment No. 1, dated August 1, 1981, to the ! CAPCO Basic Operating Agree =ent, as amended September 1, 1980 (the " Agreement"), l which is on file with the Co= mission and is identified by the Rate Schedule i numbers shown for each listed Company. Please return one (1) time-stacped j copy of the filing docu ents to each of the undersigned. Co=canv FERC Rate Schedule Number-
- i The Cleveland Electric Illu=icating Co=pany 15 f Duquesne Light Co=pany 15 !
Ohio Edison Cc=pany 144 ! Pennsylvania Power Company 35 The Toledo Edison Co:pany 27 l t The documents acco=panying this letter include:
- 1. Amendment No. I to the Agreement.
i
- 2. Three (3) copies of a form of Notice suitable for publication in the '
Federal Register, in accordance with Section 35.8 of the Com=ission's : Regulations, j
- 3. A check covering the required filing fee. ,
The signed copies of A=endment No. 1 to the Agreement evidence the agreement of the Parties. All of the Parties to the Agreement have approved this filing. ' t (. . . i t h l
-. . . _ _ - - -. . .. - - -- - - I
Federal Energy Regulatory Commission July 31, 1981 Amendment No. 1 amends the Agreement to add a new class of service in new Schedule "H" for the reservation and delivery of Non-CAPCO Power. No facilities are required to be installed or modified in order to provide the service covered by Amendment No. 1. Facilities over which services will be provided have been provided pursuant to the provisions of the CAPCO Transnission Facilities Agreement among the Parties, dated as of September 14, 1967.'*# Co=pensation for service supplied under Schedule "H" involves the sharing of any associated capacity and energy charge payments for transmission service upon the transmission systems of the CAPCO ?arties with two-thirds of such payments allo-cated equally between the supplying Party and receiving Party and one-third of such payments allocated equally between the other two Parties. The allocation of the greater percentages of the payments to the supplying and receiving Parties is justified by the fact that in any such Non-CAPCO Power transaction such Parties will bear the burdens of negotiating and administering the transaction and of having their independently owned interconnection transmission facilities used. It is respectfully requested that the Co==ission waive any requirements not already cocplied with under the Co==ission's Regulations and per=it A=end=ent No. 1 to become effective on August 3, 1981. A check in the amount of $500 is enclosed to cover the filing fee of $100 for ( each of the Parties pursuant to Section 36.2(e) of the Co= ission's Regulations. Correspondence with respec. to this filing should be addressed to each of the t undersigned. Very truly yours, ll O, W . Y William J. Kerner, Esq. Walter T. Warc:inski, Esq. Senior Corporate Counsel General Attorney The Cleveland Electric Illuminating Duquesne Light Company Co.pany 435 Sixth Avenue P.O. Box 5000 Pittsburgh, PA 15219 Cleveland, OH 44101 (1)The Cleveland Electric Illucinating Co=pany - FERC No. 8B Duquesne Light Co=pany - FERC No. 12B Ohic Edison Co=pany - FERC No. 96B Pennsylvania Power Company - FERC No. 22B The Toledo Edison Company - FERC No. 21B
Federal Energy Regulatory Conunission - 3- July 31, 1981 l ! ! (' Russell J. Spetr:.no, Esq. A( Q %g_
.unes R. Edgerly,1sq'. ~
Vice President and General Counsel .ce President and General Counsel Ohio Edison Co=pany Pennsylvania Power Company 76 South .5ain Street One East Washington Street Akron, OH 44308 New Castle, PA 16103 k4 9%f l%fA% Paul M. S= art, Esq. & General Counsel The Toledo Edisen Ce=pany Fuller & Henry 1200 Edison Plaza {- P.O. Box 2088 Toledo, OH 43603 I i l i l
1 I AMENDMENT NO. 1 1 T_O CAPCO BASIC OPERATING AGREEME'iT AS A. N ED SE?HMBER 1, 1980 THIS AGREEMENT entered into as of the 1st day of August 1981, by and among The Cleveland Electric Illuminating Company, an Ohio coryoration ("CI!"); Duquesne Light Cospany, a Pennsylvania corporation ("DL"); Chio Edison Company, an Ohio corporation; Pennsylvania Power Company, a Pennsylvania corporation and a wholly-owned subsidiary of Ohio Edison Company which company and its said subsidiary, except as otherwise provided herein, are considered as a single Party for the purposes of this Agree =ent and referred to as ("CE"); and The Toledo Edison Co=pany, an Ohio corporation ("TI"), collectively referred ( to as the ?arties. W I T N E S S I T H:
%cu2AS, the Parties entered into the CAPCO 3asic Operating Agree =ent, as a= ended Septa =ber 1,1980 (said CAPCO Basic Operating Agreenent, as so amended, being herein called the " Agreement"); and WEI?JAS, the Parties desire to further amend the Agreement to provide a schedule for the reservation and delivery of non-CA?CO Power; NOW, THEREICRI, in cocsideration of the premises and of the mutual covenants herein set forth, the Parties agree as follows:
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Section 1. Section 8.01 of the Agreement is hereby amended by 1 (. inserting as the fourteenth line of the Section: " Schedule H - Transmission of Non-CAPCO Power." Section 2. , Schedule H - Transmission of Non-CAPCO Power, attached hereto as Exhibit "A," is hereby incorporated into the Agreement. Section 3. Except as hereinabove amended, all the terms and conditions of the Agreement shall remait. in full force and effect. I IN WITNESS WHEREOF, the Parties hereto have caused this Amend =ent No. I to be executed by their duly authorized officers. i{ THE CLEVELAND ELECTRIC PENNSYLVANIA P0b7.R COMP.uT ILLUMINATING COMP.Wf f N B />
/IW By [/h.~
Title 'SSId* Title 1 Air OF E: - ECQUESNE LIGHT COMP.uT THE TOLE 20 EDISON COMP.OT By , nM / ,O _ By W v Title hh.Iwim Title CHIO EDISON COMP.OT By h ,W { Tit E3I
( CAPCO BASIC OPERATING AGREDENT - SCEDUI.E R , TRANSMISSION OF NON-CAPCO PokTR Section 1 - Services to be Rendered 1.1 Any Party (" supplying Party") may arrange to reserve Non-CA?CO Power for periods of one week or more fre= :: through an interconnected non-CAPC0 party system to be delivered to another Party (" receiving Party") for delive:f to or through another interconnected non-CAPCO party system. As used herein the term
" week" shall mean any seven consecutive days. All Parties shall be advised of such transactions in advance.
( Section 2 - Ccenensation 2.1 For such trsasactions the associated capacity and energy charge payments for transmission service upon the transmission systems of the CAPCO Parties (i.e., the difference between the amounts paid to the receiving Party and by the supplying Party) shall te shared among all Parties with 2/3 of such payments allocated equally between the supplying Party and the receiving Party and 1/3 of such pay =ents allocated equally between the other two Parties. EI4'3IT "A" !( I
l SEPTEMBER 1, 1982 LETTER TO THE FEDERAL ENERGY REGULATORY COMMISSION TRANSMITTING AMENDMENT NO. 2 TO THE CAPCO BASIC OPERATING AGREEMENT AS AMENDED SEPTEMBER 1, 1980 L l 5 Attachment E , 031GINAL ;
( f P O. Box 5000 - CLEVELANo. ohio 44101 - TELEPHONE (216) 622 9800 - ILLUMINATING BloG - 55 PUBLIC $oVARE 3.:ri.xg T.N .= >s: i- : n :n r e .m:ic.: September 1, 1982 Federal Energy Regulatory Commission 825 Capitol Street, NE Vashington, DC 20426 Attention Kenneth F. Plumb Secretary j Gentlemen: On behalf of each of the following listed Companies, we hereby transmit for filing twelve (12) copies of Amendment No. 2, entered into as of September 1, 1982, to the CAPCO Basic Operating Agree-ment, as amended September 1, 1980 (the " Agreement"), which is on file with the Com=ission and is identified by the Rate Schedule ( numbers shown for each listed Company. Please return one (1) time-stamped copy of the filing documents to each of the undersigned. Company FERC Rate Schedule Number The Cleveland Electric Illuminating 15 Company Duquesne Light Company 15 Ohio Edison Company 144 Pennsylvania Power Company 35 The Toledo Edison Company 27 The documents accompanying this letter include:
- 1. Amendment No. 2 to the Agreement.
l 2. Three (3) copies of a form of Notice of Amendment to Interconnection l Agreement suitable for publication in the Federal Register in accordance with Section 35.8 of the Commission's Regulations.
- 3. A check covering the required filing fee.
l The signed copies of Amendment No. 2 to the Agreement evidence the agreement of the Parties. All of the Farties to the Agreement have approved this filing. l
Federal Energy Regulatory Commission September 1, 1982 No facilities are required to be installed or modified in order to provide the service covered by Amendment No. 2. Facilities over which services will be provided have been provided pursuant eo the provisionsoftheCAPCOTransmissionFacgtiesAgreementamon3the Parties, dated as of September 14, 1967.
' Amendment No. 2 amends Schedule G - Emergency Power of the Agree-ment to broaden the companies' rights and obligations relating to the delivery of emergency power by requiring each company to deliver emergency power to a requesting company for a period not exceeding 48 consecutive hours in amounts up to 100 megawatt hours per hour.
This entitlement under the emergency schedule is in lieu of the 100 megawatt entitlement to CAPCO System Back-Up Power which is provided for in Article 6 of the Agreement and which terminates on August 31, i 1982 pursuant to Section 2.1 of Schedule A of the Agreement. It is respectfully requested that the Commission waive any require-ments not already complied with under the Commission's Regulations and permit Amendment No. 2 to become effective en September 1, 1982 in order to permit the Parties to have promptly available the broadened emergency power services that will result from these changes. ( A check in the amount of $500 is enclosed to cover the filing fee of
$100 for each of the Parties pursuant to Section 36.2(e) of the Com-mission's Regulations.
(1)The Cleveland Electric Illuminating Company - FERC No. 8B Duquesne Light Company - FERC No. 12B Ohio Edison Company - FERC No. 96B Pennsylvania Power Company - FERC No. 22B The Toledo Edison Company - FERC No. 21B l -
Federal Energy Regulatory ( Commission September 1, 1982 Correspondence with respect to this filing should be addressed to each of the undersigned. Very truly yours, k i . A . & ' William J. N'erner, Esq. Walter T. Wardzinski, E sq. Senior Corporate Counsel General Attorney The Cleveland Electric Duquesne Light Company Illuminating Company 435 Sixth Avenue P.O. Box 5000 Pittsburgh, PA 15219 Cleveland, OH 44101 U /f
;m. -
( ?fY' t/- ( ussell J. Spetrino, Esq. '
' James R. Edgerly, Esq,/ [/
Vice President and General ' Vice President and General Counsel Counsel Ohio Edison Company Pennsylvania Power Company 76 South Main Street One East Washington Street Akron, OH 44308 New Castle, PA 16103
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- 6% / Padl tf. Tdrirb, Esq /
- l' L General Counsel The Toledo Edison Company Fuller & Henry 1200 Edison Plaza P.O. Box 2083 Toledo, OH 43503
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AMENDMENT NO. 2 C I2 CAPCO BASIC OPERATING AGREEMENT AS AMENDED SEPTEMBER 1, 1980 THIS AGREEMENT entered into as of the 1st day of September 1982, by and among The Cleveland Electric Illuminating Company, an Ohio corporation ("CEI"); Duquesne Light Company, a Pennsylvania corporation ("DL"); Ohio Edison Company, an Ohio corporation; Pennsylvania Power Company, a Penn-sylvania corporation and a wholly-owned subsidiary of Ohio Edison Company which company and its said subsidiary, except as otherwise provided herein, , are considered as a single Party for the purposes of this Agreement and referred to as ("0E"); and The Toledo Edison Company, an Ohio corporation ("TE"), collectively referred to as the Parties. ( WITNESSETH WHEREAS, the Parties entered into the CAPC0 Basic Operating Agreement, as amended September 1, 1980 and as further amended by Amendment No. I thereto dated August 1, 1981 (said CAPCO Basic Operating Agreement, as so amended, being herein called the " Agreement"); and WHEREAS, Article 6, Section 6.02 of the Agreement provides that each Party shall have an entitlement to receive or an obligation to provide operating capacity or operating capacity and associated energy in the form of CAPCO Back-Up Power, which consists of CAPCO Unit Back-Up Power and CAPCO System Back-Up Power, in accordance with the terms of Schedule A of the : Agreement; and
)
WHEREAS, Schedule A provides that the provisions of Schedule A relating to CAPCO System Back-Up Power shall terminate on August 31, 1982 unless ex-tended pursuant to the Agreement of the Parties; and i WEREAS, the Parties have determined not to extend the provisions of Schedule A relating to CAPCO System Back-Up Power beyond August 31, 1982 and have agreed in lieu thereof, to amend the Agreerent to provide for a broadening of the rights and obligations of the Parties relating to the delivery of Emergency Power under Schedule G of the Agreement; NOW, TEREFORE, in consideration of the premises and of the mutual convenants herein set forth, the Parties agree as follows: Section 1. Section 1.1 of Schedule G - Emergency Power of the Agree-ment is hereby amended to read as follows:
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1.1 In the event of a breakdown or other emergency in or on the sys-tem of any Party involving either sources of power or transmission facil-ities, or both, impairing or jeopardizing the ability of a Party to meet the Load of its system, upon request, each Party shall deliver to such Party Emergency Power, during a period not exceeding 48 consecutive hours, in amounts up to 100 mW-hr per hour and such additional amounts as in its sole judgment it can deliver without interposing a hazard to its operations or without impairing or jeopardizing its Load. Such Emergency Power shall be provided (1) from unloaded generating facilities, either on or off le ne, to the fullest extent necessary from each supplying Party's system, or ( (2) from non-CAPCO party systems to which the supplying Parties are
interconnected. No Party is obligated to terminate any delivery of power (excluding economy transactions) to any other system in order to provide Emergency Power, but a Party is obligated to terminate economy transactions and supply any excess power from its bwn system and to purchase power, if available, from any other system with which it is interconnected in order to provide Emergency Power. Every request hereunder shall identify the emergency that gave rise to it. Emergency Power shall not be requested or supplied in lieu of CAPCO Back-Up Power. l Section 2. Except as hereinabove amended, all of the terms and condi-tions of the Agreement shall remain in full force and effect. 1 IN k'ITNESS WHEREOF, the Parties hereto have caused this Amendment No. 2 to be executed by their duly authorized officers. THE CLEVELAND ELECTRIC PENNSYLVANIA P0kIR COMPAh7 ILLUMINATING COMPAhT 1 By - - # By ' dun t G president Title T O. DUQUESNE LIGHT COMPAhT VIE TOLEDO EDISON COMPAhT
,e gF By r,, /// [f[g - m /
Y (/ en m'usuor m ocano Title aan cut cxscums omcca gpg j OHIO EDISON COMPAhT f By b (Ltup.c a m h
. 7 Title '.SENtDR VICE PRESIDENT
AGREEMENT FOR THE TERMINATION OR CONSTRUCTION OF CERTAIN AGREEMENTS BY AND AMONG THE i CLEVELAND ELECTRIC ILLUMINATING COMPANY, DUQUESNE LIGHT COMPANY, OHIO EDISON COMPANY, PENNSYLVANIA POWER COM?ANY AND THE TOLEDO EDISON COMPANY i r h Attachment F ORIGNAl.
AGREEMENT FOR THE TERMINATION OR CONSTRUCTION l OF CERTAIN AGREEMENTS BY AND AMONG l THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, DUQUESNE LIGHT COMPANY, OHIO EDISON COMPANY, PENNSYLVANIA POWER COMPANY AND THE TOLEDO EDISON COMPANY THIS AGREEMENT, effective as of the 1st day of September, 1980, by and among The Cleveland Electric Illumi-nating Company, an Ohio corporation; Duquesne Light Company, a Penns'ylvania corporation; Ohio Edison Company, an Ohio corporation, and its wholly-owned subsidiary, Pennsylvania Power Company, a Pennsylvania corporation, which two companies are considered as a single party for purposes of this Agreement; and The Toledo Edison Company, an Ohio corporation, all of which are referred to collectively as the Parties or the CAPCO Group. WITNESSETH: WHEREAS, each of the Parties is desirous of terminating or construing, effective as of September 1, 1980, certain agreements by and among the Parties. NOW THEREFORE, in consideration of the premises and of the mutual covenants herein set forth, the Parties agree as follows:
- l. The CAPCO Memorandum of Understanding dated September 14, 1967, the Agreement of Chief Executives dated July 6, 1973, and the Memorandum of Agreement with an 4
effective date of March 1, 1977, and captioned " Purchase and
- Sale Agreements Under Schedules E and H of the CAPCO Basic i
operating Agreement for the period March 1, 1977 through December 31, 1977 and for 1978, and Tentative Purchase and Sale Agreements for 1979 and Beyond" are terminated and have no further force or effect.
- 2. The CAPCO Transmission Facilities Agreement
' ~ with an effective date of September 14, 1967 (hereinafter referred to as the " Transmission Facilities Agreement") is to be construed so as to allow all of the services and transactions contemplated by the CAPCO Basic Operating Agreement as amended September 1, 1930 (hereinafter referred to as the " Basic Operating Agreement") to be performed, accomplished or effected, as the case may be, under said Transmission Facilities Agreement.
- 3. This Agreement and the Basic Operating Agreement supersede any and all other agreements by and among the Parties involving the CAPCO Group which are not terminated in paragraph 1, above, to the extent such other agreements
conflict or are inconsistent therewith. All such conflicts or inconsistencies shall be removed by appropriate written amendments to these other agreements or by other appropriate action.
- 4. The Parties hereby reaffirm and agree to implement the pool restructuring principles heretofore described in the minutes of the meetings of the CAPCO Executive Committee on and after November 1, 1979, and shall use their best efforts to prepare and execute as soon as reasonably possible any and all written amendments to agreements by and among the Parties involving the CAPCO Group and to take other appropriate action required by this Agreement, the Basic Operating Agreement, and the aforesaid minutes of the Executive Committee.
THE CLEVELAUD ELEC IC IL'UMINATING-COMPANY By: ,
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Title:
k,,,,, //ju./ l l DUQUESNE LIGHT COMPANY By: 'r /.,* /), / >[ - e'
Title:
4= **'f5'",*f,"i"*_"*_ c l l
OHIO EDISON COMPANY By: ).4rJ O 1 - -+
Title:
mcmm va ==xar PENNSYLVANIA POWER COMPANY n j By: Ibi - v
Title:
U -- '-' - THE TOLEDO EDISON COMPANY By: [Ih< L [ [l e : T n, Chaiman of the Board and Chief Executive officer o (
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( FERC ELECTRIC TARIFF ORIGINAL VOLUME NO. 1 OF i ( THE CLEVELAND EIICTRIC ILLUMINATING COMPANY i FILED WITH FEDERAL ENERGY REGULATORY COMMISSION i I Attachment G ' p y A y... + m l -. _
'Ibe Cleveland Electric First Favised Sheet No.1 Illuninating Capany Cancels Original Sheet !b.1 mqC Electric Tariff Effective: Febnnry 28, 1978 Otigitial Vol. No.1 TPANSMISSIOti SERVIG TARIFF A. Se:._:s Provided "he service provided hereunder (Transmission Service) shall be the raission of electric power between delivery (ir.terconnection) points cf he Cleveland Electric Illuminating Capany (CEI) to, frcrn, betwee% : anong rural electric cooperatives or nnicipalities located within : N_: bnbined CAPCD (Central Area Power Coordination Group) Ce pany Te_- = ries (CCCI) (Custmer) . '1he service will be 60 Herts, alterati=g current and three phase.
It is understood that the obligaticn of CEI to tra:tsmit pqwer f= htorer's account shall be subject to GI's ability to t trans=it rd deliver stated power consistent with the operation of ' its sysm - nder norral and emergency conditions for its own purposes.
'1he av"ity of Transmission Service hereunder shall be deter-mined h/ a . and the obligation of GI shall be further li:nited to '
ti.es d ___ .; which power is actually receiwd by CI for delimry to Cus _- na.:. Ibthing herein shall be construed as requiring CI to enlarge its facilities to transmit such power. hhen GI deterines ( that h s- ssion Service is unavailable, it shall paa.ptly orally ; notify ths :equesting party to that effect and the reason (s) there-for. "'.:.5 s2.all be confirred in writing as soon as practicable but not late- -han three (3) days follcuing the oral notification. The written ec--dirration shall be in sufficient detail to explain clearly . the capa: -/ constraints upon the system which make wheeling service ! unavai" = Tf, after having agreed to transmit guer on any par-ticular cc:asion, GI is prevented from making or continuing such delivery, :.: shall use all due diligence to rerove the cause of disabi14- f a x1 shall resume delivery as prtrptly as possible. i CEI shall provide 'Iransmission Service within the lirits : of the cracity of its bulk transrission facilities, and related facilities. without undue interference with service to those inter-connected s or in pa: :.ystems the operations pursuant of which to the provisions areagreenent of an conducted, with in whole CI, except as s::ted belcu to other re-tnrs of the CAPCO group, and to the e.v.s.. that such Transmission Service does not inpose a burden t.? :-. :.he system of GI. ? In the event that GI rus' reduce wheeling services to other enti. des under this Servico Schedule due to GI's lack of capacity, s.nh reduction shall not be effected until reductions of at least Ei have been rede in GI's transmission allocations to other CAPCC L h., and thereafter shall be made in proportion to reductions inposed upon other CAPCO nur.bers. t
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'Ihe Cleveland Electric First Ecvised Sheet !b. 2 Illuminating Ca@any Cancela Original Sheet !b. 2 FERC Electric Tariff Effective: Fehnnry 28, 1978 Orfginal Vol. tb.1
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'Ihe custaner by carencing to take Transnission Service fran CEI agrees to take and pay for, and CEI by comencing to furnish such Service agrees to furnish the Service, subject to the tems and conditions of this Service Tariff as they may be in effect fran tim to tim subject to action by the governmental bodies having regulatory jurisdiction over services rendered hereunder.
Transmission Service shall be provided by CEI fran time to tine, upon (i) written request by a Custaner for the reservation of transnission capacity (Transnission Reservation) for a period of one week or longer, (ii) concurrence in such request try CE1 in writing, (iii) when necessary, any request or concurren relating to the
, availability of transmission service my be mde orally and shall be con #irmad in writing as soon as practicable but not later than the third day following the day six:h oral request or concurrence is given, (iv) the execution and delivery of a service Agreement as e:4raied in the Fom of Service Agreement attached to this Tariff, (v) filing of such Service Agreemnt with the Federal Energy Pegulatory Can-rission (FERC) or any su;*.rseding regulatory authority having juris-diction and (vi) c::ncurrence by CEI fran time to tire in the rnxinun arount reserved and the duration (one week or longer for any single trans=ission service) of the service so requested to be reserved.
Men CEI plans its future transmission capability, it will mke reason-able provision for disclosed future transmission requircrents or enti-ties using wheeling services.1/ B. Duration
'Ihis Service Tariff shall becue effective 30 days after filing with the FERC and shall continue in effect for one year, and thereafter for similar periods unless changed, nodified, or super-seded. CEI reserves the right to unke a filing with the FERC for terrination of service under this tariff.
C. Chances in Charges and Tems and Ccnditions of Service This Service Tariff, the services to be rendered, expensa-tion and the tems, conditions, and rates included herein are subject to being superseded changed, or nodified either in stole or in p, mde fran time to time by a legally effective filing of CEI with or by order of the FERC or any superseding regulatory autfrrity having jurisdiction and both CEI and Custoner shall have the right at any time to seek unilaterally superseding services, carpensation, tems, conditions, and rates fran such regulatory authority. k 1/ 'Ihe tem " disclosed" is defined as the giving of reasonable advance notification of future requirements by entities utilizing wheeling services to be mde available by CEI.
she Cleveland Electric First Revised Sheet No. 3 Illuminating Caripany Cancels Original Sheet No. 3 IRC Ele ~ctric Tariff Effective: February 28, 1978 Original,Vol. No. 1 D. ccrpensatica custaner shall, with resptet to transmission services which shall be reserved during any period of one week or longer (the Reserved period) under this Servi Tariff, pay to GI rienthly, an amunt calcu-lated separately for each Transmission Beservation equal to the product of (1) the prorated r:enthly rate, S1.69 and (ii) the maxirum arcunt of kilowatts which shall have been reserwxi (the Reserved Quantity) for transmission fmn or to such interconnection point during the Peserwd Period; provided, howevar, that if at any time during said Peserved Period the amunt of power and energy actually delivered at the delimry point, adjusted for losses thereon frcxn or to the interconnection point for which such transmissicn service shall be so reserved, shall exceed the actual arount of power and energy received at the rocciving point, the excess shall be deened to be and shall be paid for by Custaner as an unscheduled inadvertent p3wer delivery. Any such excess delivery shall be settled for either by the return of equivalent power and energy or pay:-ent of the out-of-pocket oost incurred by CI, plus 10% of such ! cost. Out-of-pocket cost shall cc pensate GI for costs incurred that would otherwise not have been incurred and shall be as of the delivery point specified in the appu,priate Service Agrecrent. If equivalent energy is returned, it shall be returned at times when the load condi-
- tiens of CI are equivalent to the load conditions of GI at the time
( the energy for which it is returned was delivered or. if CI elects to have equivalent energy returned under different conditions, it shall be returned in such arount, to be agreed upon by CI and the Custoner, as will ccrpensate for the difference in conditions. There shall be added to any arount calculated pursuant to any of the foregoing provisions of this Secticn an ancunt in dollars suffi-cient to reirburse GI for any arounts paid or payable by it as sales, excise or sirilar taxes (other than taxes based upon or reasured by net incxxe) . E. Arrangerents With Other Syster:s If the requested Transmission Service involves trars-ission chrectly or indirectly on the facilities of a third utility system, Custoner will rake arrangements for use of those facilities directly with that third system, and GI shall not be obliged to ccrinence trans-mission service until such arrangenents Fave been rade. CI shall be furnished prc ptly with copies of all agreenents relating thereto and any arrangements or supplements thereto. Custczner expressly agrees to indernify and save harmless and defeM CI against all clairs, demands, costs, or expenses arising out of providing tre Transmission l Service, including, witFout limitation, clairs or demands asserted I by any supplying utility or any third party in connection with the delivery of pcNer to CEI for Custaner's account. \ ( l \
The Cleveland Electric First Revised Sheet !b. 4 Illurninating Conpany Cancels Original Sheet 1b. 4 FERC Electric Tariff Effective: February 28, 1978 origibil Col. No. 1 F. Iosses Subject to the provisions of Section I and J hereof, CI will, in each hour that power is delivered to it for transnissico for custmer's account, transmit and deliver ninety-eight percent (98%) of such power (adjusted to the nearest whole Mf) to delivery point of- Custcrer, it being agreed that 2% of such power fairly reflects losses on the CEI system. ; G. Billing and Pavnent Bills for Transmission Service shall be rendered ncnthly by CEI.and paid conthly by Customer. All such bills shall be due and payable within forty-five days from the receipt of the bill. Any a:nount due and unpaid after the due date shall be terned delinquent and there shall be aMM interest of one percent (1.0%) . For each su:ceeding thirty day period an additional one percent (1.0%) of the then unpaid amount shall , be added until the arount is paid in full. In order that bills ray be rendered prmptly after the end of each conth, it nay be necessary from time to tire to estimate certain factors involved in calculating the nonthly billing. Adjustrents for ( errors in such estirates shall be included in the bill for the contn follcuing the tine when infornation becanus available to take such corrections or adjustrents in the billing for the preceding renth or conths. H. Interruotions of Transmission Service It is understood and agreed that the Tran mission Service, if and when available, will be furnished except (1) for interruptions or reductions due to forces described in Section I of this Service Tariff; (2) for interruptions or reductions due to action instituted ; by automatic or nanual control which results in disconnection for the f purpose of raintaining overall reliability and continuity of CEI's transmission system or for the purpose of protecting its generation or transnission facilitics; or (3) fcr tenporary interruptions or reductions, which, in the opinion of CEI, are necessary or desirable for the purpose of raintenance, repairs, replacerents, or installa-tion of equi;rnent, or investigation and inspection. G I does not guarantee that the Transmission Service delivered hereunder will be free frcra interruption or inpa2.rrent and GI shall not be liable , to Custoner for darages resulting therefran. GI, except in case r of energency as detemined by CEI, will give Custcrer reasonable ; advance notice of any scheduled tenporary interruptions or impair- l nent of Transmission Service. Custcner will notify GI's dispatchers {. of any unscheduled interruption or inpairrent of Transmission Service i by telephone and confirm such notice in writing on the sane date such i notice was given. GI will use due diligence to renove all causes ; of such interrupted or impaired service. 1 i l
First Revised Sheet No. 5 the Clewland Electric cancels original Sheet ?b. 5 nluminating Oxpany Effective February 28, 1978 cy c f.lectric Tariff xiginal,Vol. No. 1 I. Force Majeure ! In case either CEI or Custczner should ce delayed in or pre-Nented frm performing or carrying out any of the ac;rea:ents, covenants, and cbligatims made by and imposed upcn said parties by this Service Tariff by reason of or through strike, stoppage in labor, failure of centractors or suppliers of materials, riot, fire, flood, ice, invasion, civil war, ocruction, insurrections, military or usurped power, order of any Court granted in any boda fide adverse legal pzuceedings or action, or of any civil or military authority either de facto or de jure, explosion, act of God or the public enemies, or any cause reason-ably beyond its control and not attribu' Ale to its neglect; then, and in such case or cases, such party shan not be liable to the othe2; party for or on account of any loss, damage, injury or expense resulting frcan or arising out of such delay or prevention; provided, however, that the party suffering such delay or prevention shall use due and, in its judg:nent, practicable diligence to renove the cause or causes thereof; and provided, further, that neither party shan be rrquired by the foregoing provisions to settle a strike except when, acmrding M its own best judgnent, such settlenent sees advisable. (' J. Custcrer's and CEI's Pesconsibilities Custoner and CEI win exercise diligence to use and provide the electric service furnished under this Service Tariff with a view to securing efficiency of Custcrer's and CEI's apparatus and systems in keeping with generally accepted good operating standards, will maintain a power factor as near unity as practicable consistent with good engineering practice, will ccordinate their respective systa=s relaying and fusing so as to preclude unnecessary interruptions, win raintain their respective lines at all tires in a safe operating condition, win cperate their respective lines in such manner e not to interfere with the service to custmers of either party and will mordinate maintenance which may adversely affect the operation of their respective facilities. Custcrer will use electric service equally frcrn three phases as nearly as possible. If CEI shan deem it necessary that voltage regulating equipent, including but not limited to the structures and devices associated with such equipent, is required, such equipent shan be provided, owned and raintained by customer. Custcr:er assunes au responsibility for electricity beyond the point of delivery and CEI shall not be liable for danages to the person or property of Custmer or its enployees or any other persons resulting from the use or presence of electricity beyond the point of delivery.
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'1he Cleveland Electric First Fevi!EY(sot,h 6 Cancels Ori;M Sheet No. 6 yj I4uminating Ccripany 4
~
', EffectiverFeb2hr.ry 28,1979 ~
IEPC El'ectric Tariff ori.gingI:Vol. No.1 gg x, A K. Metering Metering equipret will be supplied, installed, wired, owned and maintained, calibrated and' scaled by CEI. Such metr _rs shall be of , a type selected by CEI. Ch v _ khen netering is a% point other than the delivery point; , the notering equipaent shall he ccrpensated to registered valMs, which - would have been recorded if the equip:ent had been located at the ; i s delivery point. ,
'1he accuracy cf the retering equipment shall be verifico by proper test at any tine up:n reasonable notice given by either CEI c6 -
Custcrer to the other, anl nch party shall be entitled to have a Is'Tre-se:;tative present at such verification. _
'Ihe work of testing and adjusting any notitr for accuracy shall be perforned by and at the expense of CEI, provided that such test is rot called for by Custcrer note often than once in twene nonti.e. If either party shall require nere than one verification of any reter in any twelve ncnth period, and the reter proves to be accurate within two (2) ' percent plus or rinus, the aMitional verification shall be at the e_wse of the party requesting it. < ',
If such equiptent is found to be inaccurate by nere than ti.:c, (2) percent plus or rinus, the eg';iprent chall be made accurate and the' neter roa+ngs for the period of inaccuracy shall te , adjusted te' cor.Mt such inaccuracies as far as"'the sane can be 'reasonchly ascertainedL If the pericd of inaccuracy cannot be reasonably ascertainerL the period' of inaccuracy will be deemd to have encczmassed one-half of the time period since the last test of the reter. , , In the event that CEI's neters fail toMister preperly ' s during any billing perisJ, the demand and energy. quantities,will b2 ' estinated by CEI frczn the best available data, t '
'i x . s Custcrer ejrees to supply, free of' cost, a suitable loca- ,
tion for the installation of CEI's neterirgsegaigrunt and such cther - facilities as are required by CEI in its pxigrent in providing.the requested service. Such location shall be in accordance with speci ' ' ' fications as supplied by CEI. g, Custcrer gives all necessary pemission to enabW} the agents : I of CEI to carry out the terms and conditions of tMs rate senedule. and construct and naintain its lines and circuits in 101 at all placey re-quired by CEI and owned, leased or cont-elled by Custcrer. Custa. car gives to CEI the right for its duly auttorized agents Ed ed-byees? to enter the premises of Customr at all reasonable tires for thP , purpose of reading reta_rs, keeping in repair or renoving its proretey, or inspecting its work-incident to rendering service under this ii 3 { Service Tariff. '
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- e Cleveland Electric First Revised Sheet No. 7 111tzgnating Wy Cancels Original Sheet No. 7 FEsc Electric Tariff Effective: February 28, 1978 original Vol. No.1 *
( ; Other a.rangenents for ownership, testing, installing cali-i brations may be used as my be nutually agreed to by CEI and Custczner. L. No Dedication of Facilities Any undertaking by one party to the other under any pro-vision of this Service Tariff shall not constitute the dedication of the system or any portion thereof of any party to the public or to the other party, and it is understocx1 and agreed that any such under-taking by any party shall cease upon terrination of this Service Tariff. s h' ( ' f v l
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c AGREEMENT FOR THE PURCHASE AND SALE OF ONTARIO HYDRO KEITH POWER AGREEMENT FOR THE PURCHASE AND SALE OF ST. J0E SHORT-TERM POWER AGREEMENT FOR THE PURCHASE AND SALE OF DETROIT EDISON SPECIFIC CAPACITY POWER AND SYSTEM ENERGY Attachment H ORIGila l
Crnformed Cepy AGREEMENT FOR THE PURCHASE AND SALE C OF ONTARIO HYDRO KEITH POWER This Agreement, entered into as of the 1st day of August, 1981, by and among The Cleveland Electric Illuminating Company, an Ohio corporation ("CEI"); Duquesne Light Company, a Pennsylvania corporation ("DL"); Ohio Edison Company, an Ohio corporation; Pennsylvania Power Company, a Pennsylvania corpo-ration and a wholly-owned subsidiary of Ohio Edison Company which company and its said subsidiary, except as otherwise provided herein, are considered as a single Party for the purposes of this Agreement and referred to as ("0E"); and The Toledo Edison Company, an Ohio corporation ("TE"), collectively referred to as the Parties, W I T N E S S E T H: (. WHEREAS, the Parties have entered into the CAPCO Basic Operating Agreement, as amended, which provides for the coordinated operation of the sys-tems of the Parties, so as to provide among other things for the utilization by each of the Parties of the facilities heretofore provided for by the Parties, and WHEREAS, Article 20 of the CAPCO Basic Operating Agreement, as amended, permits the Parties to enter into with other Parties or with other systems any new agreements which do not impair obligations under said Agreement or the ability of a Party to perform its obligations under said Agreement, and l Conformed Copy l l l - , - , - - . . , , -
WHEREAS, Schedule B of the CAPC0 Basic Operating 1.greement, as ( amended, permits a Party to reserve short-term power for periods of one or more F weeks from another Party, and e t WHEREAS, Schedule H of the CAPC0 Basic Operating Agreement, as amended, permits a Party to reserve non-CAPCO power for periods of one week or more from or through an interconnected non-CAPCO party system to be delivered to another Party for delivery to or through another interconnected non-CAPCO ; i party system, and , WHEREAS, the Parties have entered into the CAPCO Transmission r t Facilities Agreement, dated as of September 14, 1967, which provides, among ; L other things, for the installation on the systems of the Parties thereto of an adequate transmission network, and the operation and maintenance thereof, to provide a means for more effective coordination with other systems, power pools and coordination groups, and I WHEREAS, CEI is a Party to the Interconnection Agreement between ! CEI and the PJM Group, dated September 30, 1965, under which CEI during the I past year has been providing short-term power to Jersey Central Power & Light [ i Company, Metropolitan Edison Company and Pennsylvania Electric Company, collec- ! tively known as the General Public Utilities Companies ("GPU") of the PJM Group, e and . i WHEREAS, as a consequence of the nuclear incident which occurred at GPU's Three Mile Island Unit No. 2 on March 28, 1979, GPU has suffered and 3 I' continues to suffer a severe shortage of electric generation which has caused I L i
and continues to cause emergency needs for the supply of electric service to GPU's customers, and WEREAS, to help satisfy such emergency needs, CEI proposes to purchase from TE pursuant to this Agreement for transmission upon the transmis-sion systems of the Parties and for immediate resale to GPU power being gener-ated and c:ade available to TE at the Canada-US border by Ontario Hydro of Ontario, Canada (" Ontario Hydro"), and being transmitted to TE by Consumers Power Company and The Detroit Edison Company (the " Michigan Companies"), NOW THEREFORE, in consideration of the premises and of the mutual covenants hereinafter contained, it is agreed as follows: ARTICI.E I SERVICES TO BE RENDERED 1.1 During the period this Agreement is effective, CEI reserves from TE, the power and associated energy available for ultimate sale to GPU from the four 63.5 MW coal-fired units of Ontario Hydro's .I. C. Keith Thermal Generating Station (" Ontario Hydro Keith Power"), in such amounts up to 254 MW as shall be determined from time to time by TE. As used herein, the term " week" shall mean any seven consecutive days. 1.2 During the period of the reservation of Ontario Hydro Keith l 1 Power, the number of megawatts of power to be delivered shall be scheduled as prearranged weekly by CEI and TE with the concurrence of GPU. Such scheduling { shall be confirmed in writing with appropriate notice to the other Parties. If
^
1 during such period conditions arise that could not have been reasonably fore-
. seen at the time of scheduling and cause the delivery to be burdensome to any Party, such Party may by oral or written notice to the other Parties require a reduction in the number of megawatts to be delivered by such amount and for such times as such Party shall specify in such notice.
ARTICLE II COMPENSATION AND BILLING 2.1 For any period that Ontario Hydro Keith Power is reserved, CEI shall pay to TE the following: 1 2.11 for Ontario Hydro Keith Power reserved by TE from, and for associated transmission services provided by, another system not a l ( Party to this Agreement: (a) the amount paid therefor by TE; plus l (b) $1.00 per megawatt hour for any energy related to the Ontario Hydro Keith Power supplied by TE in accordance with Schedule B of the CAPC0 Basic Operating Agreement. 2.2 For any period that Ontario Hydro Keith Power is reserved hereunder for resale to GPU under the Interconnection Agreement between CEI and the PJM Group, 2.21 CEI and TE shall share with DL and OE in accordance with Schedule H of the CAPCO Basic Operating Agreement the portion of CEI's Short-Term Power compensation for transmission service under such Interconnection
l Agreement for Ontario Hydro Keith Power reserved by TE from another system not ( a Party to this Agreement and the portion of TE's Short-Term Power compensation under Schedule B of the CAPCO Basic Operating Agreement (described in 2.11(b) above) for transmission service as follows: (a) one-third to CEI, (b) one-third to TE, (c) one-sixth to DL, and (d) one-sixth to OE. 2.3 Billing and Payment 2.31 As promptly as practicable after the end of each calendar month, TE shall prepare and furnish to CEI a billing statement show-Is ing power transactions and amounts owed under the terms of this Agreement. Such billing statement shall be due and payable by CEI on the first banking day common to the Parties hereto following the nineteenth day of the month in which such statement is rendered. Notwithstanding the foregoing, such billing statement shall no.t be due and payable to the extent that GPU fails to compen-sate CEI for amounts owed hereunder in which event CEI shall exercise its best efforts to collect such compensation from GPU, and will not compromise or set-tle any claim for such compensation without the prior consent of TE. To the extent that GPU compensates CEI in an amount less than the amount GPU owes CEI under CEI's billing statement for power and i associated energy supplied hereunder, CEI shall pay TE so much of such amount
- as will first compensate Ontario Hydro for Ontario Hydro's out-of pocket costs
( l l
. - = _ _ - _ . . _. -_
l l ( associated with its energy and reservation charges, and shall pay DL, OE and TE so much of the balance as will then result in a sharing of the remainder among CEI, DL, OE, TE, the Michigan Companies, and Ontario Hydro in proportion to the amounts owed to such Parties and non-CAPCO party systems for their re-spective unpaid charges. AP.TICLE III TER'l 0F AGREEMENT 3.1 This Agreement shall become effective on August 3,1981 and shall continue to be effective through December 31, 1983, unless extended by mutual agreement of the Parties, or unless the Agreement between Ontario Hydro and TE is cancelled earlier according to its terms in which event this Agree-(. ment shall terminate at the same time. 3.2 Notwithstanding the foregoing, the effectiveness of this Agreement shall be subject to the obtaining and maintaining of any requisite orders, approvals, permits, certificates or licenses from any governmental authorities having jurisdiction. ARTICLE IV REFERENCE TO OTHER AGREEMENTS 4.1 The terms of the CAPCO Basic Operating Agreement, as amended, and the CAPCO Transmission Facilities Agreement, as amended, shall apply to all transactions under this Agreement to the extent applicable. (
Canfcrmed Capy ( 4.2 The terms of this Agreement shall hereby supersede and ter-minate the Agreement between The Cleveland Electric Illuminating Company and The Toledo Edison Company for the purchase and sale of Ontario Hydro Keith Power, which was entered into as of the 1st day of May, 1981, between CEI and TE. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. THE CLEVELAND ELECTRIC DUQUESNE LIGHT COMPANY ILLUMINATING COMPANY By: s/ Robert M. Ginn By: s/ John M. Arthur
Title:
President
Title:
Chairman { OHIO EDISON COMPANY PENNSYLVANIA POWER COMPANY By: s/ Justin T. Rogers Jr. By: s/ Justin T. Rogers Jr.
Title:
President
Title:
Chairman of the Board THE TOLEDO EDISON COMPAhT By: s/ Lowell E. Roe
Title:
Vice President, Enerny Suqnly i Conformed Copy
( AGREEMENT FOR THE PURCHASE AND SALE OF ST. JOE SHORT-TERM POWER This Agreemeat, entered into as.of the 25th day of January 1982, by and among The Cleveland Electric Illuminating Company, an Ohio corporation ("CEI"); Duquesne Light Company, a Pennsylvania corporation ("DL"); Ohio Edison l Company, an Ohio corporation; Pennuyr<ania Power Company, a Pennsylvania corpo- , ration and a wholly-owned subsidiary of Ohio Edison Company which company and , its said subsidiary, except as otherwise provided herein, are considered as a single Party for the purposes of this Agreement and referred to as ("DE"); and i The Toledo Edison Company, an Ohio corporation ("TE"), collectively referred l to as the Parties, ( W I T N E S S E T H: ; i WHEREAS, the Parties have entered into the CAPCO Basic Operating Agreement, as amended, which provides for the coordinated operation of the systems of the Parties, so as to provide among other things for the utilization by each of the Parties of the facilities heretofore provided for by the Parties, and ., t WHEREAS, Article 20 of the CAPCO Basic Operating Agreement, as amended, permits the Parties to enter into with other Parties or with other systems any new agreements which do not impair obligations under said Agreement or the ability of a Party to perform its obligations under said Agreement, and ; (~- b
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i ( WHEREAS, Schedule B of the CAPC0 Basic Operating Agreement, as amended, permits a Party to reserve short-term power for periods of one or more weeks from another Party, and WHEREAS, Schedule H of the CAPCO Basic Operating Agreement, as amended, permits a Party to reserve non-CAPCO power for periods of one week-or more from or through an interconnected non-CAPCO party system to be delivered to another Party for delivery to or through another interconnected non-CAPCO , party system, and WHEREAS, the Parties have entered into the CAPCO Transmission Facilities Agreement, dated as of September 14, 1967, which provides, among other things, for the installation on the systems of the Parties thereto of ( an adequate transmission network, and the operation and maintenance thereof, to provide a means for more effective coordination with other systems, power pools and coordination groups, and WHEREAS, CEI is a Party to the Interconnection Agreement between CEI~and the PJM Group, dated September 30, 1965, under which CEI has been providing short-term power to Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company, collectively known as the
- General Public Utilities Companies ("GPU") of the PJM Group, and l
WHEREAS, as a consequence of the nuclear incident which occurred at GPU's Three Mile Island Unit No. 2 on March 28, 1979, GPU has suffered and continues to suffer a severe shortage of electric generation which has caused (.
and continues to cause emergency needs for the supply of electric service to I GPU's customers, and WHEREAS, to help satisfy such emergency needs, CEI proposes to purchase from DL pursuant to this Agreement for transmission upon the trans-mission system.s of t.he Par.t.ies and .for immediate resale to GPU power being generated by St. Joe Resources Company ("St. Joe") of Monaco, Pennsylvania, and sold to DL as short-term power ("St. Joe Short-Term Power") for resale to CEI. 1 NOW THEREFORE, in consideration of the premises and of the mutual convenants hereinafter contained, it is agreed as follows: ARTICLE I (' SERVICES TO BE RENDERED 1.1 During the period this Agreement is effective, CEI reserves from DL, St. Joe Short-Term Power for ultimate sale to GPU from St. Joe subject to the limitations and restrictions contained in the Agreement between St. Joe and DL dated January 21, 1982. As used herein, the term
" week" shall mean any seven consecutive days.
1.2 During the period of the reservation of St. Joe Short-Term Power, the number of megawatts of power to be delivered shall be scheduled as prearranged weekly by CEI and DL with the concurrence of GPU and St. Joe. Such scheduling shal! be confirmed in writing with appropriate notice to the
- other Parties. If during such period conditions arise that could not have j
(
I l been reasonably foreseen at the time of scheduling and cause the delivery to be burdensome to any Party, riuch Party may by oral or written notice to the other Parties require a reduction in the number of megawatts to be delivered by such amount and for such times as such Party shall specify in such notice. ARTICLE II COMPENSATION AND BILLING 2.1 For any period that St. Joe Short-Term Power is reserved, CEI shall pay to DL the following: 2.11 For St. Joe Short-Term Power reserved by DL, - (a) the amount paid therefor by DL; plus ( (b) $1.00 per megawatt hour for any energy related to the St. Joe Short-Term Power DL is purchasing for resale to CEI in accordance with Schedule B of the CAPCO Basic Operating Agreement. 2.2 For any period that St. Joe Short-Term Power is reserved here-under for resale to GPU under the Interconnection Agreement between CEI and the PJM Group, 2.21 CEI and DL shall share with TE and OE in accordance with Schedule H of the CAPCO Basic Operating Agreement the portion of CEI's short-term power compensation for transmission service under such Interconnection Agreement for St. Joe Short-Term Power reserved by DL from another system not
a Party to this Agreement and the portion of DL's short-term power compensation under Schedule B of the CAPCO Basic Operating Agreement (described in 2.ll(b) above) for transmission service as follows: (a) one-third to CEI, (b) one-third to DL, (c) one-sixth to TE, and (d) one-sixth to OE. 2.3 Billing and Payment 2.31 As promptly as practicable after the end of each calendar month, DL shall prepare and furnich to CEI a billing statement showing power transactions and amounts owed under the terms of this Agreement. Such billing [ statement shall be due and payable by CEI on the first banking day corraon to the Parties hereto following the nineteenth day of the month in which such statement is rendered. Notwithstanding the foregoing, such billing statement shall not be due and payable to the extent that GPU fails to compensate CEI for amounts owed hereunder in which event CEI shall exercise its best efforts to collect such compensation from GPU, and will not compromise or settle any claim for such compensation without the prior consent of DL. To the extent that GPU compensates CEI in an amount ,
. 1 less than the amount GPU owes CEI under CEI's billing statement for power and associated energy supplied hereunder, CEI shall pay DL so much of such amount as will first compensate St. Joe for St. Joe's out-of pocket costs associated
[ with its energy and demand charges, and shall pay DL, OE and TE so much of the
balance as will then result in a sharing of the remainder among CEI, DL, OE, TE and St. Joe in proportion to the amounts owed to such Parties and non-CAPCO ( party system for their respective unpaid charges. ARTICLE III TERMOFAdREEMENT 3.1 This Agreement shall become effective on January 25, 1982 and shall continue to be effective through December 31, 1986, unless the Agreement between St. Joe and DL is extended or is terminated earlier according to its terms in which event this Agreement shan be extended or terminated at the same time. i 3.2 Notwithstanding the foregoing, the effectiveness of this ( Agreement shall be subject to the obtaining and maintaining of any requisite orders, approvals, permits, certificates or licenses from any governmental authorities having jurisdiction. ARTICLE IV REFERENCE TO OTHER AGREEMENTS 4.1 The terms of the CAPCO Basic Operating Agreement, as amended, and the CAPCO Transmission Facilities Agreement, as amended, shall apply to all transactions under this Agreement to the extent applicable.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. THE CLEVEIAND ELECTRIC DUQUESNE LIGHT COMPANY ILLUMINATING COMPANY By:
. . r@/h' [ 161::# By:
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Title:
Title: VIhE FRESIDENT OHIO IDISON COMPANY " PENNSYLVANIA POWER COMPANY By:.
/ 7 -
h* By: .6d G4'
Title:
EfallGR YlCE PRES!OENT'
Title:
VICE PRESIDEN1 I i THE TOLEDO EDISON COMPANY By: ylCE FRESIDENT, ENERGY SUPPL.Y Title,
AGREEMENT FOR THE PURCHASE AND SALE OF DETROIT EDISON SPECIFIC CAPACITY POWER AND SYSTEM ENERGY This Agreement, entered into as of the 1st day of June 1982, by and among The Cleveland Electric Illuminating Company, an Ohio corporation (CEI); Duquesne Light Company, a Pennsylvania corporation (DL); Ohio Edison Company, an Ohio corporation; Pennsylvania Power Company, a Pennsylvania corporation and a wholly-owned subsidiary of Ohio Edison Company which company and its said sub- J sidiary, except as otherwise provided herein, are considered as a single Party for the purposes of this Agreement and referred to as (OE); and The Toledo Edison Company, an Ohio corporation (TE), individually referred to as a Party and collectively referred tc as the Parties, i( W I T N E S S E T H: 4 WHEREAS, the Parties have entered into the CAPCO Basic Operating Agreement, as amended, to provide among other things for the utilization by each of the Parties of the facilities heretofore provided for by the Parties, and WHEREAS, Article 20 of the CAPCO Basic Operating Agreement, as amended, permits one or more of the Parties to enter into with other Parties or with other systems any new agreements which do not impair obligations under said Agreement or the ability of a Party to perform its obligations under said Agreement, and [ l
WHEREAS, Schedule B of the CAPCO Basic Operating Agreement, as ( amended, permits a Party to reserve short-term power for periods of one or more weeks from another Party, and WHEREAS, Schedule H of the CAPCO Basic Operating Agreement, as amended, permits a Party to reserve non-CAPCO power for periods of one week or more from or through an interconnected non-CAPCO party system to be delivered , to another Party for delivery to or through another interconnected non-CAPCO party system, and , t L WHEREAS, the Parties have entered into the CAPCO Transmission Facilities Agreement, dated as of September 14, 1967, which provides, among ! other things, for the installation on the systems of the Parties thereto of i an adequate transmission network, and the operation and maintenance thereof, . k and ; WHEREAS, Consumers Power Company (CP), The Detroit Edison Company (DE) and TE entered into an Operating Agreement dated March 1, 1966, as amended, l for and with respect to the carrying out of various interconnection services
- I and transactions, and [
I i WHEREAS, CEI is a party to the Interconnection Agreement between ! i I CEI and the PJM Group," dated September 30, 1965, under which CEI has been providing short-term power to Jersey Central Power & Light Company, Metropolitan ; ! Edison Company and Pennsylvania Electric Company, collectively known as the f General Public Utilities Companies (GPU) of the PJM Group, and l t 5
I WHEREAS, as a consequence of the nuclear incident which occurred ( at GPU's Three Mile Island Unit No. 2 on March 28, 1979, GPU has suffered and continues to suffer a severe shortage of electric generation which has caused and continues to cause emergency needs for the supply of electric service to GPU's customers, and WHEREAS, to help satisfy such emergency needs, TE proposes to pur-chase Specific Capacity Power and System Energy from DE pursuant to Service Schedule G of its Operating Agreement with CP and DE for immediate resale to CEI, and CEI proposes to purchase such Specific Capacity Power and System Energy in accordance with Schedule B of the CAPCO Basic Operating Agreement, as amended, from TE for transmission pursuant to this Agreement upon the trans-mission systems of the Parties and for immediate resale to GPU. NOW THEREFORE, in consideration of the premises and of the mutual
~
convenants hereinafter contained, it is agreed as follows: ARTICLE I SERVICES TO BE RENDERED 1.1 During the period this Agreement is effective, CEI reserves from TE for ultimate resale to GPU the Specific Capacity Power and associated energy and System Energy which is purchased by TE under Service Schedule G of i its Operating Agreement with CP and DE in such amounts up to 650 MW as shall be determined by'TE from time to time under said Service Schedule G. As used herein, the term " week" shall mean any seven consecutive days. I( l 1
1.2 During the period of the reservation of Specific Capacity Power and System Energy the number of megawatts of power to be delivered shall i be scheduled as prearranged weekly by CEI and TE with the concurrence of GPU and DE. Such scheduling shall be confirmed in writing with appropriate notice to the other Parties. If during such period conditions arise that could not have been reasonably foreseen at the time of scheduling and cause the delivery to be burdensome to any Party, such Party may by oral or written notice to the other Parties require a reduction in the number of megawatts to be delivered by such amount and for such times as such Party shall specify in such notice. 1.3 In the event DE makes a request for System Energy from GPU, the express written consent of TE required in Paragraph 2.3 of Service Schedule G of the Operating Agreement among CP, DE and TE shall not be given unless CEI, OE and DL have been notified by TE as to the amount and duration of the pro-( posed transaction, and the Parties have consented thereto on terms to be mutually agreed to among the Parties. ARTICLE II COMPENSATION AND BILLING 2.1 For any period that Specific Capacity Power and System Energy l from DE is reserved by TE for ultimate sale to GPU, CEI shall pay to TE the following: 2.11 For Specific Capacity Pcwer and System Energy reserved by TE, (
(a) the amount paid therefor by TE; plus (b) $1.00 per megawatt hour for any energy related to the Specific Capacity Power and System Energy TE is purchasing for resale to CEI in accordance with Schedule B, as it may be amended from time to time, of the CAPCO Basic Operating Agreement. 2.2 For any period that Specific Capacity Power and System Energy is reserved hereunder for ultimate sale to GDU under the Interconnection Agree-ment between CEI and the PJM Group, CEI and TE shall share with DL and OE in accordance with Schedule H of the CAPCO Basic Operating Agreement the portion of CEI's short-term power compensation for transmission service under such Interconnection Agreement for Specific Capacity Power and System Energy re-served by TE from DE and the portion of TE's short-term power compensation under Schedule B, as it may be amended from time to time, of the CAPCO Basic Operating Agreement (described in 2.ll(b) above) for transmission service as follows: (a) one-third to CEI, (b) one-third to TE, (c) one-sixth to DL, and (d) one-sixth to OE. 2.3 Billing and Payment 2.31 As promptly as practicable after the end of each calendar month, TE shall prepare and furnish to CEI a billing statement showing power transactions and amounts owed for such month under the terms of this Agree-( ment. Such b:.lling statement shall be due and payable by CEI by wire transfer
to a 1- .c designated by TE en the first banking day common to CEI and TE fol-( lowing we nineteenth day of the month in which such statement is rendered. Not - withstanding the foregoing, such billing statement shall not be due and payable to the extent that GPU fails to compensate CEI for amounts owed hereunder in which event CEI shall exercise its best efforts to coll'ect such compensation from GPU, and will not compromise or settle any claim for such compensation without the prior consent of TE. To the extent that GPU compensates CEI in an amount less than the amount GPU owes CEI under CEI's billing statement for power and associated energy supplied hereunder, CEI shall pay TE so much of such amount as will first compensate DE for DE's out-of pocket costs associated with its energy charges, and shall pay DL, OE and TE so much of the balance as will then result in a sharing of the remainder among CEI, DL, OE, TE and DE in proportion ( to the amounts owed to such Parties and non-CAPCO party system for their re-spective unpaid charges. ARTICLE TII TERM OF AGREEMENT 3.1 This Agreement shall become effective on June 1, 1982 and shall continue to be effective through December 31, l'990, unless Service Schedule G of the Operating Agreement among CP, DE and TE is extended and the Parties
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hereto agree to provide service hereunder for such extended period, or is ter-minated earlier according to its terms in which event this Agreement shall be i terminated accordingly. (
3.2 Notwithstanding the foregoing, the effectiveness of this ( Agreement shall be subject to the obtaining and maintaining of any requisite orders, approvals, permits, certificates or licenses from any governmental l authorities having jurisdiction. l l ARTICLE IV ) REFERENCE TO OTHER AGREEMENTS 4.1 The terms of the CAPCO Basic Operating Agreement, as amended or as it may be subsequently amended, and the CAPCO Transmission Facilities Agree-ment, as amended or as it may be subsequently amended, shall apply to all trans-actions under this Agreement to the extent applicable. i I (
IN WITNESS WHEREOF, the Parties have caused this Agreement to be ( executed by their duly authorized officers. M CLEVELAND ELECTRIC DUQUESNE LIGHT COMPANY ILLUMINATING COMPANY By: lh/ , W By: 1 A7] hwbj exahuanor!neceoman
Title:
Executive Vice President
Title:
OHIO EDISON COMPANY PENNSYLVANIA P0kT.R COMPANY By: Md./mM U By: - P
)
Title:
SENIOR ylCE PRESIDENT ParsIctr?
Title:
( THE TOLEDO EDISON COMPAhT By: w/ A VICE PRESIDENT, ENERGY SUPPLY
Title:
Acknowledged and consented to: General Public Utilities Service Corporation on behalf of Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company. GENERAL PUBLIC UTILITIES SERVICE THE DETROIT EDISON COMPAhT CORPORATION By: / By: [ r'id L c of
' ' ' ' # Vice President-operations
Title:
Title:
Application for ( Operating License for Beaver Valley Nuclear Power Station, Unit No. 2 INFORMATION REQUESTED BY THE NUCLEAR REGULATORY COMMISSION IN CONNECTION WITH ITS ANTITRUST REVIEW ANSWERS OF THE TOLEDO EDISON COMPANY AEE1 day 11 State of Ohio )
) SS:
County of Lucas) On December j3,1982, before me, a Notary Public in and for the State and County aforesaid, personally appeared Lyman C. Phillips, who, after being duly sworn according to law, deposed , i I and said that he is Vice President, Corporate Planning and Development of THE TOLEDO EDIdON COMPANY, a corporation; that in such capacity he is authorized to make this Affidavit; and that the within Answers of THE TOLEDO EDISON COMPANY to the Information Requested by the Nuclear Regulatory Commission in connection with its Antitrust Review are true and correct to the best of his knowledge, information and belief. s (4Mid4L ' Lymag/C. Phillips Sworn to and subscribed before me the day and year aforesaid. STEPHEN B. MOSER ry bi of Oc%k N u rsommesion has no empiradon see Not;6ry P'ubiic Section 147A3 R.C.
( THE TOLEDO EDISON COMPANY Response To NRC Regulatory Guide 9.3 Question la: Anticipated excess or shortage in generating capacity resources not expected at the construction permit stage. Reasons for the excess or shortage along with data on how the excess will be allocated, dis-tributed, or otherwise utilized or how the shortage will be obtained. Answer: The Toledo Edison Company's (Toledo Edison) current forecast of installed generating capability, shown below in Table I, results in reserve margins deemed adequate to maintain acceptable system reliability under normal operating conditions. Reserve margins increase after the addition of new generating units, however, tnese margins decline in the respective subsequent years as a consequence of normal load growth. Also, while these units are expected to be declared couwercial in the respective years indicated in Table I, for planning purposes Toledo Edison does not anticipate that these units will be fully available at all times during the ( first year of commercial operation due to start-up testing requirements and the normal initial start-no difficulties associated with new nuclear units. Since the construction permit stage, Toledo Edison's forecast of system peak loads has been substantially reduced. This reduced forecast is occasioned by the dramatically different social, economic and energy outlook today than was foreseen at the time the original projections were made during the construction permit period for the unit. Higher energy costs which have tended to surpress load growth, generally lower economic growth prospects, and a new energy conservation ethic have all contributed to this lower forecast. In response thereto, the scheduled start-up date for Beaver Valley Unit No. 2 has been delayed from April, 1977 to May, 1986. Similarly, the start-up dates for Perry Unit No. I and Perry Unit No. 2 have been delayed from the original dates of April 1979 and April 1980, respectively, to May 1994 and May 1988, respec-tively. Additionally, four nuclear units have been canceled (Erie Unit Nos. I and 2 and Davis-Besse Unit Nos. 2 and 3). Adequate generating capacity reserves are imperative in order to maintain economical electric service to our customers without unnecessary dependence on capacity from other sources. Reserves are required so that generating ( equipment can be taken out of service to perform scheduled maintenance and, in the case of nuclear units, for refueling
.- - - - - - - ., -w .., . . , - , -,, . , _ - , - . . , . . , . ,,
~2- 'k THE TOLEDO EDISON COMPANY Response to NRC Regulatory Guide 9.3 Answer:
(la cont.) operations. Reserves are also required for unplanned outages due to equipment failures, fuel shortages, unforeseeable extreme weather conditions, and unit derating as a result of regulations affecting the construction and operation of generating facilities. Toledo Edison believes that the generating capacity shown in Table I will be adequate to meet presently expected load growth. However, future capacity require-ments and plans are subject to ongoing review and may be modified. TABLE I Toledo Edison's Projected Net Seasonal Capability At Time of Annual Peak (in MW) Current System Net Seasonal Projected Reserve (i- Forecast Peak,(cad (l) Capability (2) Reserves (3) Margin (%) 1983 IJ90 1768 378 27.2 1984 1450 1768 318 21.9 1985 1500 2008 508 33.9 I 1986 1550 . 2008 458 29.5 1987 1590 2171 581 36.5 1988 1630 2158 528 32.4 1989 1680 2384 704 41.9 1990 1720 2384 664 38.6 1991 1770 2384 6 14 34.7 1992 1810 2384 574 31.7 Committed Capacity Additions Scheduled Toledo Edison Unit In-Service Shsre-NCD MW Perry Unit No. 1 (1205 MW) 5/1/84 240 Beaver Valley Unit No. 2 (833 (MW) 5/1/86 166 Perry Unit No. 2 (1205 MW) 5/1/88 240
'( 1 ) Excluding interruptibles and rural electric cooperatives (RECS).
(2) Including planned purchases from Ohio Valley Electric Company (OVEC) (3) Before maintenance.
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THE TOTIDOJE'DISON COMPANY j[ I- Response T I s
- NRC Regulatory Guide 9 7 4 m, ,.
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Question Ib: New power pools oricod. r din'ating groups or changes in structure, activities, polieles, practices, or membershiph " w of power pools or,c'oordinatiag groupa in wLich theilicensee " was, -is ,' ot* will be a participant. p '"
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or r Answer: The CAPCf Group in'!ssa 1979 complir.ed studdo. re-evaluatia's the CAPCO constructO h program and the CAPC0 ed ' ( A- , structure. -- , For a complete explanation of.thrt agreementsreachhi'as ~
-3 a result ot these\jeint studies, please consult answe of Duquesne Light cow 2asy and Th'e Clev. land Electric Illuminating Companytc'Questior[ld. ,
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Question Ic: Changes in, transmit'sion'with respect to (1) the nuclear 1. ,' plant, f.2)~intercoinectione, or (3) connections to wholesale customers. t
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Answer: (l) No cihanges to Toledo Edison's System - [ ! 2 (2) Toledo Edison has added one 345 KV transaiasion interconnecties: y (
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(3) On February 21, 1978, To,ledo Edis'n o placed into service a 12.47,KV delivery poict near Lyons, Ohio, establishing service to a' portion'of Southeastern Michigan. REC's load within the State of Michigan. This load is supplied by power. from Toledo Edison as requested by the Southeastern Michigan REC.' On May 28, 1982, the City of Bryan,-Ohio, discen-tinued its 69 KV connection with, Toledo Edison and , began receiving its entire power" requireirants from Ohio Power Company's 138<KV Lockwood' Substation. Changes in the ownership,or contractual allocation of i l Question Id: the output of the nucled facility. Reasons and basis for such changes should be included. s
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THE TOLEDO EDISON COMPANY Response To Ek
i NRC Regulatory Guide 9.3
,.h 4 i
- There has been no change in Toledo Edison's ownership Answer:
allocation of Beaver Valley Unit No. 2.
, n 3 Question le: Changes in design, provisions, or conditions of rate
" schedules and reasons for such changes. Rate increases or decreases are not necessary.
st Answer: In general, Toledo Edison has moved toward a simplifica-
- tion of its rate schedules. This has included the initia- !
s tion of a separately identified customer charge in most y rate schedules and a reduction in the number of rate s blocks. Likewise, there has been a flattening of the m7 rate structures through a reduction in the pricing
..? differential between the rate blocks. Several special These included purpose rates have also been established.
a demand metered rate for residential electric heating customers, an interruptible rate for large industrial customers and an experimental residential energy storage J ' b., rate. It is believed that these changes are in accord with - current rate making trends in that they establish ; a better correlation between the rate structure and the cost incurred in providing service. , Attached hereto as Exhibit 1 are copies of Toledo Edison's current rate schedules. ) Question if: List of all (1) new wholesale customers, (2) transfers from one rate schedule to another, including copies ! of schedules not previously furnished, (3) changes in licensee's service area, and (4) licensee's acquisitions or mergers. . 1 Ansder: (1) None. (2) No transfers from one rate schedule to another.
; (See Item lb) 4 (3) None. ,
(4) None. 1 l
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' THE TOLEDO EDISON COMPANY Response To ,
f NRC Eagulatory Guide 9.3 Question 171: List of those generating capacity additions committed for operation after the nuclear. facility, including owner-i ship rights or power output allocations. I Toledo Edison has a 19.91% ownership share of the Answer: l committed Perry Unit No. 2. t Question ih: Summary of requests or indications of interests by ' } other electric power wholesale or retail distributore, l and licensee's response, for any type of electric
- service or cooperative venture or study.
i: Answer: (1) On May 2, 1978, Robert W. Sorgenfrei, the Director of Utilities of the City of Bowling Green, Ohio, , l ' wrote to Toledo Edison on behalf of the cities of l Bowling Green, Montpelier and Napoleon, Ohio ex-pressing a tentative interest in participating with } I Toledo Edison in joint generation projects, includ- ! l ing those involving nuclear units. Through various 7 ( meetings and correspondence, Toledo Edison indicated l its interest in this tentative proposal, although l
. it was recognized by all parties concerned that the formation of such a joint venture among Toledo Edison and the municipalities would require changes f in Ohio law. Discussions on this matter were very {
j tentative, and in view of other alternatives set t ' forth in ih(2), below, were not pursued by the f municipalities. f j (2) By letters dated December 29, 1978 and March 26, 1979, attorneys Robert A. Jablon and David R. Strauss, on behalf of four Toledo Edison municipal wholesale customers (Bowling Green, Montpelier, Napoleon and Bryan, Ohio) and twenty-one Ohio Edison municipal wholesale customers, requested from the CAPCO com- [ j panies access to Davis-Besse Unit Nos. 1, 2 and 3 and Perry Unit Nos. 1 and 2, nuclear generating units [ operated or then scheduled to be operated by the CAPCO [ utilities. In the latter letter, a discussion of I wheeling was also requested, as well as an exchange of. f views regarding possible membership in CAPCO by an in- I dividual or group of municipalities. On June 1, 1979, a ( ( ' I e [ t L
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THE TOLEDO EDISON COMPANY Response To ( NRC Regulatory Guide 9.3 Answer: (1h cont.) meeting was held in Cleveland, Ohio at which repre-sentatives of the municipalities, Toledo Edison, Ohio Edison and Cleveland Electric Illuminating Company, inter alia, discussed the municipalities' tentative proposal, and its possible implementation through the establishment of an Ohio Municipal Electric Authority to be set up as a financing tool for certain municipalities. An amendment to the Ohio Constitution was required for the establish-ment of such a financing authority, however, and the required constitutional amendment was defeated by Ohio voters in a statewide election held on ! June 3, 1980. Subsequently, no significant addi-tional action has been undertaken by the parties to implement the proposal. (3) Commencing in April of 1979, the City of Bryan, Ohio and Toledo Edison on numerous occasions held meetings ( and exchanged correspondence concerninL ryan's various alternatives for securing its power supply after the ' termination of its wholesale power supply contract with
' Toledo Edison on June 1, 1982. Among the various alternatives (with certain variations) which were discussed between Toledo Edison and Bryan were the following: [
(i) Toledo Edison continuing to supply Bryan's f full requirement of power; (ii) Toledo Edison supplying Bryan's power l for three months of the year, and wheeling power the balance of the year for Northwest Cooperative so that Bryan could purchase its power therefrom; (iii) The same proposal as in number (ii), above, except during the aforementioned nine month period the power wheeled by Toledo Edison would be purchased by Bryan directly from Buckeye Power, Inc. instead of from Northwest Cooperative; ( 1
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's N THE TOLEDO EDISON COMPANY
(- Response To NRC Regulatory Guide 9.3 L Answer: (th cont.) (iv) The purchase by Bryan of one-half mile of transmission line owned by Toledo Edison connecting the latter to Ohio Power's system, with Bryan then purchas-ing its power requirement from Ohio Power; (v) The purchase by Bryan of its entire ; wholesale power requirement from Ohio ; Power, which power would be wheeled by Toledo Edison over its transmission facilities. In April of 1980, Toledo Edison submitted a bid at Bryan's request for the provision of Bryan's entire wholesale requirement of power. That bid was re-jected, and Toledo Edison was notified that on June 1,1982, Bryan would cease purchasing its entire wholesale power requirement from Toledo Edi- ' son. Bryan's request that Toledo Edison sell one-( half mile of its transmission line connecting Toledo Edison with Ohio Power was rejected. However, in i Docket No. ER80-571 before the Federal Energy Regulatory Commission, an application by Toledo ; Edison for a wholesale rate increase, a settlement i agreement was reached under which, inter alia, Toledo Edison would upon request wheel power from f Buckeye Power, Inc. or any other wholesale power ! supplier to various wholesale customers in Toledo , Edison's service territory, including the City of i Bryan. In June of 1981, The Ohio Power Siting Commission granted a certificate to the City of Bryan to con- l struct a 10.6 mile transmission line and associated ! substations along an abandoned railroad acquired by ! the City that ran between Bryan and an Ohio Power ! Company line coming out of Indiana. The line, known j as The Marquis Corridor, was completed on May 28, ; 1982. On March 31, 1982, Toledo Edison tiled a ! Notice of Cancellation cf its service to Bryan with , 1 i k l
l 1 (- THE TOLEDO EDISON COMPANY Response To NRC Regulatory Guide 9.3 Answer: (1h cont.) the Federal Energy Regulatory Commission. On April 26, 1982, Ohio Power Company filed with the Federal Energy Regulatory Commission, an electric service agreement executed by Ohio Power Company and the City of Bryan, Ohio, which replaced the service agreement between Toledo Edison and the City of Bryan. On June 1, 1982, service to Bryan by Toledo Edison was terminated. (4) On June 6, 1979, attorney Robert a Jablon, on behalf of the Cities of Bowling Green, Bryan, F.ontpelict and Napoleon, Ohio, wrote to Toledo Edison and re-quested Toledo Edison to wheel power from Buckeye Power, Inc. to the respective municipalities pur-suant to, and on the terms and conditions specified in a contract to which Toledo Edison and Buckeye ( Power, Inc., inter alia, are signatories (hereinnfter Buckeye Power Delivery Agreement). Subsequently, in various meetings and correspondence between Toledo Edison and attorneys for the municipalities, Toledo Edison has acknowledged its obligation in accor-dance with and under the circumstances specified in the Federal Energy Act and the NRC licensing conditions to wheel power upon request to munici-palities within its service territory; however, in connection with the specific request by the municipalities, Toledo Edison expressed its opinion that the Buckeye Power Delivery Agreement was not intended to be applicable under the circumstances presented in the municipalities' request, and thus that contract does not specify the terms and conditions on which Toledo Edison is obligated to furnish services of any type to the municipalities. Nevertheless, in Docket No. ER 80-571 before the Federal Energy Regulatory Commission, an appli-cation by Toledo Edison for a wholesale rate in-crease, a settlement agreement was reached under which, inter alia, Toledo Edison would upon request wheel power from Buckeye Power, Inc. or any other (-- wholesale power supplier to various wholesale customers in Toledo Edison's service territory, including the cities of Bowling Green, Bryan,
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THE TOLEDO EDISON COMPANY Response To NRC Regulatory Guide 9.3 Answer: (lh cont.) Montpelier and Napoleon, Ohio. The settle-ment agreement further provides that the terms and conditions for the provision of such wheeling services by Toledo Edison from Buckeye Power, Inc. are to be negotiated in good faith by the parties on a cost basis, but if the Federal Energy Regulatory Cossaission in Buckeye Power. Inc. v. Cincinnati Gas & Electric Co., FERC Docket No. EL 79-20 should find that the Buckeye Power Delivery Agreement is applicable ,' under the circumstances there presented, then Toledo Edison would furnish wheeling services I ' from Buckeye Power, Inc. to the municipalities in accordance with and on the terms and conditions specified in the Buckeye Power Delivery Agreement, ' subject to judicial review of the aforementioned decision. On January 25, 1982, the FERC issued (' an order which required Cincinnati Gas and Electric Company to wheel Buckeye power in accor-dance with the terms of the Buckeye Power Delivery Agreement. On March 25, 1982, the FERC denied a rehearing application by Cincinnati Gas and Electric Co. On May 24, 1982, Cincinnati Gas 1 and Electric Co. petitioned the United States Court of Appeals for the Sixth District for re-view of the orders issued January 25, 1982, and March 25, 1982, by the FERC. 4 (5) On January 29, 1981, in response to a request from the Village of Tontogany, Toledo Edison supplied fuel adjustment factors and an estimation of ' costs for the provision of wholesale power for the month of December, 1980 in order for the , Village to compare costs with its current supplier. No additional correspondence has taken place. (6) On April 1, 1981, American Municipal Power-Ohio, Inc. (AMP-Ohio) commenced an off-peak seasonal l sale of power to the communities of Bowling Green, j Edgerton, Montpelier and Napoleon. AMP-Ohio is an l Ohio corporation organized to furnish technical ser- l vice on a cooperative, non-profit basis for the benefit of its patrons which are electric systems i
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THE TOLEDO EDISON COMPANY Response To ( I NRC Regulatory Guide 9.3 l Answer: (th coat.) owned and operated by municipal corporations in the 1 State of Ohio. [ AMP-Ohio purchases power from Buckeye Member Cooperative which in turn transmits electricity l through Toledo Edison lines where it is sold to the . various manicipalities. On June 4,1981, Toledo Edison tendered for filing in Docket No. ER 81-518 l a Seasonal Transmission Tariff. Following a pre- l hearing conference, all parties agreed in principal t to a settlement. On November 5,198I, Toledo Edison filed a Motion for Approval of Settlement { Agreement with the FERC concerning rates under its i Seasonal Transmission Service Tariff. The Settlement , Agreement was approved with an effective date of April 1, 1981. f f AMP-Ohio supplied off-peak seasonal power at 100% i load factor during the months of April through October ! to the manicipalities of Bowling Green, Bryan, Edger-l ton, Montpelier and Napoleon in 1981. In 1982, Bryan f i ceased its purchase of off-peak seasonal power frona ; AMP-Ohio. However, the municipalities of Elmore, Genoa, Oak Harbor, Pemberville, Pioneer and Woodville l ( contracted with AMP-ORIO for off-peak seasonal power in ! 1982 and power has been wheeled by Toledo under a , modification of the seasonal agreement to accomodate l the lower voltage deliveries. , L i Licensees whose construction permits include conditions Question 2: pertaining to antitrust aspects should list and discuss j those actions or policies which have been implemented : I in accordance with such conditions. Answer: There are no antitrust license conditions attached to [ BVPS-Unit 2 Construction Permit. Such conditions are attached to David-Besse Unit No. I and Perry Nuclear Power Plants No. I and 2. With respect to these f conditions it is the policy of Toledo Edison to comply I [ with all of the License Conditions. l Actions or policies implemented subsequent to and in ; accordance with the License Conditions are listed below: ; i i l I l i i f t
THE TOLEDO EDISON COMPANY Response To NRC Regulatory Guide 9.3 Answer: (2 cont.) License Condition 3 An agreement between Toledo Edison and its whole-sale customers has been reached under which Toledo Edison has agreed to wheel power, upon request, from Buckeye Power, Inc. or any other wholesale power supplier to wholesale customers within Toledo Edison's service territory (see Item lh) . License Condition 9 Requests were received from attorneys Jablon and Strass, on behalf of 25 wholesale customers of the CAPCO companies, for preliminary discussions con-cerning access to Davis-Besse Unit Nos. 1, 2 and 3 and Perry Unit Nos. 1 and 2. (See Item lh). License Condition 10 ( Toledo Edison Sells wholesale power to all re-questing entities within its service territory. i 1
THE TOLEDO EDtSON COMPANY Toledo. Ohne P.U.C.O. No. g Sixth Revised Shoot No. 4 RESIDENTIAL RATE R41" APPUCASILITY: This rese is escaisebas se a enes femdy rendense, e eingle ensuosiev spenment, e enemise houeme unit or any oeer single fenuly resulaneet unit. TNs roes done not apply to commeraal or industriel service. If a residential unit is used for bom residentist and eenenerated purpoems me appropriese genered servise rose shall apply uneens the vuoring is se errenced that me resweentief wengo con be metered separoesly. The heelways and oeer common fusilices of an apartment busiding ' or sportment eemplea are to be billed on es appropriese general servies rete. MONTH LY R ATE: ! SUMMER WINTER (1) Customer Charge
$snese Phase Servue S4D0 S4.00 Threemme Service -
38.00 35.00 (2) Energy Charge First 1000 KWH.por KWH 4.748 S.2E All Additional KWH,per KWH SAM 4AN SEASONAL PER1008: The Summer period shall be the belling mones of Mey mrough Seasomber and the Winter pened sheil be me belling months of Ocsoner through April. MINIMUM t The monimum ball shed be the r-anthly euesomer charge. ( TERMS OF PAYMENT: The not amount of the bill is due within fourimen deve as shown on the bill. If not goed within met time, e lose payment servies charge of five paraant urell sino be due. Such ises payment service charge will not be sensesed prior to one fuel day foNousing the due dese. The lose payment servies charge well be seemosed only when there is more then one late payment in a tuselve month period. ELECTRIC FUEL COMPONENT: The energy charge shell be ediussed to inelude the cunont oost of fuel coneurned so produce electric energy in campsience with Rule 4001:1 11 of the Ohio Admmestrotrve Code, se reflected 6n the Electric Fues Component Rider on Sheet 43A of this tentf. EXCISE TAX SURCHARGE ADJUSTMENT: MonthN charges under this schedule shool be ediusted ist socordence with the surcherge for recovery of incrossed l Ohio Gross Rece.pta Encise Tem as set north in Rider No.2 of this tariff. I ACCOUNT ACTIVATION: The inattel bill for e new customer or o customer et a new location shell include en account activetion charge of
$4DO.
TYPE OF SERVICE: The type of service svedele incsudes odsernering current. 80 hertz. single phase et me Company's seconcery voltages, overhead or undergroured es aresisele et the specific austomer locetion. The customer mov e+ect three9hase service where this een be modo evealese without additiones construction cost. Thes sheet filed pursuant to me Order in Case No. 81420 EL AIR of the Public Utilities Commission of Ohio, dated June 9.1982.and the Entry deted July 7.1982. Continued on Sheet No. JA issued: Jusy l e.1952 issued ev Jonn P. Win,emson. Cheerman Effective Juiv le.1982 Edison Piese. Tosedo.Oh.o
l l THE TOLEDC EDISON COMPANY j{ Toaseo. Ohio P.U.C.O. No. e Fifin Revised Sheet No. 4A l \ RESIDENTIAL RATE *1'I41** TERMS AND CONDITIONS:
- 81) Service unoer this row is suposeed in accordence with the Rules and Reguienone of the Company sad is subject to the surediction of the PutWic Ut>Iite Commesion of Ohio.
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- Thrs sheet filed pursuant to the Greer .n Case No. 81420-E L AIR of the Public Utilities Commission of Ohio, dated
( Ju o 9.1982.
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THE TOLEDO EDISON COMPANY Tosedo Oh6e P.U C.O. No. 6 Slath Reviend Sheet No. S
-w RESIDENTIAL NOT WATER RATE *1%4" APPLICA41LITY:
TNe rete is owedemie only to those cuesomere being served under me rete se of August 1,1979, or who home contrac1ed for the purchase or instelletion of e6ectrie water heeting pnor to that date. This rete is oweilab4e on en optonel bears to e angle femdy rendenes utdising eesctricity as the rev=wy souros of one'gy be
- ster heating,and applies sees to e engle aseugency operenent, o motele housing unit or any oeher single family reesdentiel unst ;
masong the unlisation reguaremente. i This runs does not apply to commero6el or industrtei servies. If a reesdentiel unit is used for boe reesdential and commercial purposes, the espropriese general service rues shall apply unless the wiring is se erfenged thet the reendential usage een be metered sepersteiy. The hallways and other sommon facilities of en apartment building or apartment comp 6es are to be b6 fled on the approprises generel service rete. MONTHLY RATE: SUMMER WlNTER (1) Cuesomer Charge angle #hase servies 84.00 84.00
-- Three#hese serv 6es 3.00 38.00 (2) Energy Charge-First 1000 KWH, per KWH S.208 SEE All Additional KWH,per KWH 52 4M
- SEASONAL PERIOOS
I The Summer pened sheit be the belling months of May through Sepoember and the Wirrter pened she48 he the l>lling mones of Octoeer through April. ( MINIMUM: The mammum asil shell be the monthly customer charge. TERMS OF PAYMENT: The not amount of the bell is due ethm fourteen devs as shown on the bill. If not peed within that time, e late payment service charge of five percent wdl eso be due. Such late payment service charge wdl not te seassend prior to one full day foetosang the the date. The love payment service charge will be essessed only when there is more then one late peyment in a tweeve month period. ELECTRIC FUEL COMPONENT: The energy charge shall be adiveted to inc6ude the marrent cost of the fuse consumed to produce seectne energy in compliance entti Ru6e 4001:111 of the Oheo Adminestrative Code, se reflected in the Electne Fuee Component Rider on Sheet 43A of this tentf. EXCISE TAX SURCHARGE ADJUSTMENT: MontNy charges under this senedule shell be ediusted in accordence with the surcharge for recovery of encreened Ohio Gross Recepts Emons Tem as set forth m R, der No. 2 of this tenff. TYPE OF SERVICE: The type of service svedeo6e includes alterneting current, 60 hertz, smgee cheen et the Company's secondary voltages, overhood or underground as evodee6e to the specific custorner locanon. The customer mey e6ect three-pheme seavice where this een be made oveeleele vnthout enditionel construction cost. This sheet filed pairsuant to the Orcer in Case No. 81420-EL. AIR of the Puotic Utilities Commission of Ohio, dated June 9,1982, and the Entry dered July 7,1982. Coetmued on Sheet No. 6
.ssweo .wy 14. b62 issued by Jonn P Win.emton. Chairman 6ffectwe July 14.1982 Edison Piere. Toieco. ONo
THE TOLEDO EDISON 10M*ANY Tone Revised Sheet No. S ye, onto P.U.C.O. No. 4 RESIDENTIAL HOT WATER RATE R44 TERMS AND CONDITICN& (1) Servws under tnis rete is escotied in accoreenes witn the General Sennce Rules and Regulations of the Company and is subsect to the juned.cten of the PutNac UtWitwe Conwese6on of Che. (2) Customer must have permanently instoeled, and in operation, e6ectne water heetmg ooviament, sporoved by the Company, espotying the entre roouirement for domestic hot water. The monimum electnc water hostmg seement retmg shou be 5500 wetts. Two emment water hesters with nonmtertocked elements have e permesible toget eiement wettege of 7000 wetts. In oroer to esaure satisfactory hot water service, the Company recommends that the water heating eeusement es reendences have trunimum total tank ceaecify of 40 genons. (3) Contmued espeicability of this rete e e cussomer is contingent upon their partiopetion in a postave load control pogram inwo# wing me insteitaden of load controte on seectric weer heeang and control air consinomag should the Company so reeuset. k l This sheet filed pursuant to the Order in Cees No. 814204L41R of the Public Utilites Commession of Ohio, dated
- June 9.1982.
l I lasued by Jonn P Well.amson. Chairman E f f ective : June 11,1982 L issued: June 11.1982 t Edison Piere. Toscoo. On.o i i
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1 1 i 1 l I l i THE TOLIDO EDISON COMPANY Toledo. Ohio P.U.C.O. No. 8 Twomh Revised Sheet No. 7 RESIDENTIAL OFTIONAL HEATING RATE 'H48* APPLICA81LITY: This rose is evealsbis on en opdoned lessie to e high usage single femdy residenes wellaine e permanently ineselled eiestr4 speso hasting system as a subeesntial seures of es scene hasting reevirements,and appe ving eleo to a single sempency emerwment, e mobile housing unit er any oeor single femely residentisi unit moedng the utiliset6en requerenants.Not less then 75 percent of the aussemer's connessed load must be within es desellang unat. This reto does not apply to commercial er inclustrial sorwim. If a reesdentief unit is ured for hoe reesdentiel and commercial purpoems the approenees generei service rete shed espey unless the wiring is so errenged that the resedential wange c.a be metered superately. The heilways and omer common facilities of en sportment buddens or operonent comptes are to be belled on the appropriate generet servies rete. MONTHLY RATE: SUMMER WINTER (1) Cusammer Charge sagiehene Servies 98.00 85.00 Three.pheme Servies $10.00 810.00 (2) Energy Charge First 125 KWH ser KW twc.mid First 1000 KwH,per KWH S.54 SJD K All Addinonel KWH,per KWH 5.9 5 4 AGE All Energy in Excess of 125 KWH per KW Demand,per KWH 2AE 1.93 SEASONAL PERIOOS: ( The Summer poned she64 be the billing months of May through Sepomber and me Winter period shed be the twiling months of Octocar through Aard. MINIMUM: The minimum t>ll shall be the monthly customer charge.The menwnum demand sness be 8 kilowetts. TERMS OF PAYMENT: The not amount of the bill is due within fourteen days es shown on the bill. If not peed within that tirne. e late payment sonnce merge of five percent will eieo be due. Such less payment service charge wdl not be amassend enor to one full doy fodownne the due dete. The late payment sonnes charge wdl be esmemame only when there is more than one late payment in e tweeve month pened. ELECTRIC FUEL COMPONENT: The energy charge shed be ediusted to include the current cost of fuel coneamed to produos eeectne energy in ; compliance with Rule 4901:1 11 of the Ohio Administretrve Cooe, es reflected in me Electnc Fuel Component 1 Rider on Sheet 43A of this tentf. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges unoer tms schedule shall be adrusted in accordance with the surcharge for recovery of increened Ohio Gross Rece,ots Excise Tem as set forth in Rider No. 2 of this tentf. Thrs sneet filed pursuant to the Order in case No. 81420-EL. AIR of the Putdic UtHitwo Commesson of Ohio, dated June 9,1982, one the Entry dated July 7,1942. ( Conemuod on Sheet No. 8 assuse: July 14.1982 issueo ey Jonn P. Will.emson. Chairmen Ef f ectwo: July 14.1982 Edison Piere. Toseco. Oho
THE TOLEDO EDISON COMPANY Toledo. Oh6o P.U.C.O. No. s Twifth Revised Sheet No. S rMESIDENTIAL OPTIONAL HEATING RATE 'M.00" ACCOUNT ACTIVATION: De initiet bill for a new cuseerner or a customer et a new faceton shadi include en encount activetion change of 88.00. TYPE OF SERVICE: The type of sonnes aweitable instudes efternoong cunent, 80 herts, singes phase et me Comeeny's secondary weltsges. overhead or underground as sweelebte et the specific customer location.The mastomer may esect three-phase service where mis can be made sweelable without additionel construccon east. D EMANO DETERMIN ATION: The Monely Billing Demand will be the highest recorded demand during the billing mone,but not less then 8 KW. Dornand readings veil be determined to me nearest whose KW.The demand motor provided will be en indicoting meter wie a fifteerwninute iningretme intervel or, et the opoon of the Company.e suiteole eermei-type demand meer. TERMS AND CONDITIONS: (1) Serwee under mie rete is nace64ed in accorospos wie the Rules and Regulations of the Company and is subtect to the lunesicoon of the Putme utilities C .xm of Ohio. (2) Customer enuet be a high usage customer and must have permanent *y insulted, and in ooerecen, seentne space heetme equiernent susoeving e sucesennel portion of the heating roouirements of the remadence, as determined by the Company. (3) The term of contract med be for one ywr from the stort of serv 6ce under mis rete ord thereefwr untti terminated by notice by the Castomer, smoot se otherwise provided in the Company's ruter and resaiecons. Termination by the cusemer manne the first year shed only be by mutual sysoment of t.No Company. This sheet flied pursuant to the Order in Case No. 81420-EL AIR of the Pubt c utilities Commission of Ohio, dated f . lune 9.1982. i . (' I leeued Oy John P. Williamson. Chairmen Eff ective. June i1,1942 issued: June 11.1982 Edison Ptere.Toiedo Ohio l 1
THE TOLEDO EDISON COMPANY To4edo. Ohio P.U C.O. No. 8 Thirteenth Revised Sheet No.9 RESIDENTIAL HEATING MATE 'M7" APPLICAglLITYt This row is oreilmie only to'those - 2. besag eerved under the rose as of August 1.1975, or who have con. tracted for electne esco hesong prior to ther date. Thee rete is oveilmie on en opsonal beeis to a single femely rendense unliaing electriesty as the pnnwy soures of energy for esse heating and weser hosting, and spedying eine to e single assusency operwnent, a mebite housing sendt er any omer single family rendentiet unit momeng es uselection requirements. This roes does not secey to commeroisi or industriel earvies. If a roeidential unit le used for both residenttet end commerciel purposes, the opersonate genere4 sorwies rete shell apply unless the vnring is se arranged that the resi-dential usage con be meered separately. The heilweye and other common feelities of en soortment building or soortment compeem are to be billed on the sopropriate generei service rete, i l MONTHLY R ATE: SUMMER WINTER til Cuesomer Charge Sneiehene Servise $440 S4DO Threehsee Service WA0 W.00 (2) Energy Charge First 1000 IOYH.per KWH 6.20E 5.3SE All Additional KWH,per KWH. 5AM 3348 SEASONAL PERIODS: The Summer poned shell be me boiling mones of May through Sootember and the Winter period shool be the billing months of October through Aont. MINIMUM: The minimum bill shool be the menety customer charge. TERMS OF PAYMENT: The not amount of the bill is due within fourtoon days as shown on the bill. If not paid withm that time, e tote psytriest sorwice charge of five percent wdl eleo be due. Such late payment service charge will not be asesseed enor to one full doy fosaunne the due date. The less perment sorwice charge weit be essessed only when there is more then one lose peyment in a tweswe mone pened. ELECTRIC FUEL COMPONENT: The energy charge shool be ediusted to include me current cost of fuel consumed to produce etectne energy in comedience wee Rule 4001:1 11 of the Ohio Adminstrotrve Code, es reflected in me Electne Fuel Component Rider on Sheet 43A of this tentf. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges under this schedule shell be ediusted in accordance with tt's surcharge for recovery of incrossed Ohio Grom Receipts Exetse Tom es set forth in Rider No. 2 of thes tentf. TYPE OF SERVICE: The type of service svedebte includes siternetmg current. 60 hertz. single phase et the Company's seconderv vottegos, overhead or underground as evealeele et the noecafic customer location. The customer mey e6ect three. pheus service where this con be made evealsele without additional construction cost. This sheet filed pursuant to the Order in Case No. 81420-EL. AIR of the Public Utsisties Commission of Ohio, dated June 9.1982 and the Entry osred July 7.1982. Continued on Sheet No. to l Issues: Jusy 14.1982 issued by Jonn P.Winismson Chairmen E f f ective: July 14.1982 Edison Pisas. Toledo. Chio
i THE TOLo!OO EDISON COMPANY Telece . Omo p U C.O.No.6 Tenth Revised Sheet No.10 ( R EMQENTIAL H EATING MATE '?I47* TERMS AND CONDITIONS: (1) Service under this rate is supplied in accordance wim the Rules and Repletions of the Company and is subiect to the junsdiction of the Pubdec Utilites Commission of Ohio. (2) Customer must have permanently instetted and in operet6on, e6ectric space hasting equienent supolving the total haeting roovirements of his residence. (3) Customer must hows permanentty instelled and in operation, e6ectre water heeting souipment. coproved by the Company, suppeving the entre requirement for domestic hot we'er.The memimum eactne motor heating element reting shall be 5500 werts. Two e#ement water heeters with nonentersocked esements have e permenione met eiement wettege of 7000 wetts. In order to ensure satisf actory hot water sonnce, the Comoony recommends that the water heeting soutoment in residences have minimum tous tank capacity of 43 gettons. (4) Continued sooticanility of this rete to a customer is contingent upon their perticioetion in a positive load control program inwoMag the inematetten of Ioed contro6s on weetric mter heeting and control est conditioning shouad the Company so reouset, f l l l l l This sheet filed pursuant to the Order in Case No. 81420-EL AIR of the Pubiec Utilities Commission of Ohio, dated {. June 9.1982. 1 l issued: June 11.1982 tuusa ev Joan P weitramson. Chairman E"ective; wne Jo- l Edison Piere. Tosedo. Ohio l
l THE TOLEDO EDISON COMPANY Tosedo. Ohne P.tJ.C.O. No. 8 Thirteenth Revised Sheet No.11 EXPERIMENTAL RESIDENTIAL ENERGY STORAGE RATE "R48" APPLICASILITY: This rete le evealene to roeidennet customers on en esperimentet beeis to provide offesek energy for spese conditioning and water heeting erough the use of customer +sned. permanently wired energy storego devices. This rete sheet be eweile6e to no more een fifty customers who obtain their other esectrical service through one of the Company's standard residential roses. Eligibility for ese rete will be determmed by me Commeny wie considersoon of the unieve noture of the energy storees devices the economie viability of es energy storees system, and determmscon met the operation of the sustomer's system will have no detrwnental effect upon the operation of Coneeny dietnbunon focalities.nor reevice meditiones capiteilnweetment for och feellitsee. CHARACTER OF SERVICE: The purpose of thee rete is to encourses resserch and devo6coment of energy storees systeme in order to make - possible efficiency improvenents in the unlizacon of the Company's etectncel system. Eisetricos service for energy storego pursesse weit be eweitete ordy dunng offgeek hours through esseretes< metered carowits suessied with the same seestrical merectoristico es me czastomer's other service. Por thee rete. $e offgeek hours will be from 10 00 p.m. to 8:00 e.rn. Eastern Senneerd Time each day. Although these hours are subeset to chenes from t6me to time et the Company's opcon, energy will be provided fer a minimum of to hours each esy.The Company well provide e time clock or omer devies se control the energy storess citoulte through Companyesproved aestomer. owned disconnect switchse. MONTHLY R ATE: lli Customer Charge 5;ngleJ'hme Sennae 98.00 Three-Phase Service $10.00 (2) Demand Charge,per KW $1 A7 (3) Energy Charge.per KW 1.27C MINIMUM: The mmemum t>ll shell be the monthly customer chorge plus the sophcocle demand charge. TERMS OF PAYMENT: The not amount of the ball is due wiein fourteen asys es shoven on the bill. If not paid vnthm that time, e less payment servios charge of five percent will eleo be due. Sue tote peyment servies charge will not be essessed once to one full doy folloenng the due date. The late payment service charge will be essessed only when there is more than one less payment in a twwwe month gened. ELECTRIC FUEL COMPONENT: The enorgy charge shese be ediussed to include the current cost of fuel consumed to produce e4 ectr 6c energy m comtWience with Rule e001:111 of the Ohio Admmistrative Code, as reflected in the Electne Fuel Cemoonent Rider on Sheet 43A of this tenff. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges under this schedule sheel be ediusted in accordance with the surcherge for recovery of increased Ohio Grose Receipta Emcise Tom as set forth m Rider No. 2 of thrs tariff. This sheet fHed pursuant to the Orcer :n Cess No. 81620-EL. AIR of the Pubiec Utilities Commiasson of Ohio, dated June 9,1982 and the Entry dated July 7,1982. Continued on Scieet No 12 lisueo: Juiv 14.1982 lisueo ov ann P. Wilhamson. C% airman E f f ective : Juiv 14.1982 Edison Pfeta. Toledo. Cheo
I THE TOLEDO EDISON CC'dPANY To6eco. Oh* P U C.O. No. 6 Eleventh Revised Sheet No.12 EXPERIMENTAL RESIDENTIAL ENERGY STORAGE RATE "R40" ACCOUNT ACTIVATION: The initial bdi for a new customer or a customer et a new location shoal include en account actreetion charge of 1 SS.00. DEMAND DETERMINATIONt The Monthly Billing Demand wel be me highest retortled demand dunng the billing month. Domend readings wdl be determaned to the nearest whoie KW.The demand motor prthnded will be en indicetme meter weth a fifteen. minute intoyeting intervel or, et the option of the Company, e suitable thermel type demand meter. TERMS AND CONDITIONS: (1) Servies under the rete is espotied in socordance wim the Rules and Regieoons of the Company and is , asbeast to the junedieoon of the Pubiis Utdities Commamion of Ohio. QI in ortler to onein the menemum benefit from thee esperimental offering and to deermne that there is no dwenmenet effect upon sferibuoan feeslities, the Company reserves the nght to inspect the customers eouioment et ressenense times and to use mosering and test equipment deemed proper. (3) Service under this rete well initteily be twnited to single phase. 3 were,120/240 Voit or three phase.4 wire. 120/200 Voet. Messmum iced to be sorwed will be limased to e 200 Ampere emp=mity. ( This sheet filed pursuant to the Order in Case No. 81420-EL-AIR of the Puohc Urtisties Commission of Ohio, oeved June 9.1982. is June 11.1982 lsewed by Jonn P. Wilhemson. Chairmen E f f ective: June 11.1982 Edison Ptose. Toledo. Oh.o
THE TOLEDO EDISON COMPANY Toledo. Ohio P.U.C.O. No. 8 Thirteenth Revised Sheet No.14 ( LARGE GENERAL SERVICE RATE "GS 12" APPLICASILITY: Aweelebte to any customer on the lines of the Comenny assey6ng 'or permanent service for sommercial er industriel umso who wdl passentos a Monthly 34tilng Demand of et least one hundred fifty (150) kiloweitensores. MONTHLY NET MATE (Three Periel: SUMMER WINTER (1) Demed Chorge: First 200 KVA or Lees of MontfWy 0.iling Demand.per KVA M.70 87.91 All Addisons KVA Owr 200 KVA of Monthly Billing Demend.per KVA $8.24 87.43 (2) Energy Charge: First 300 KWH per KVA of MontfWy Billing Demand.per KWH 3.1M 2./M All Addioensi KWH. Der KWH 1.24E 1.248 (3) Cuoeemer Charge: The Monely Customer Charge Shesl se S125.00 $125.00 SEASONAL PER!ODS: The Summer sened shall be the bdling months of May through September and the W6nser pened shaft be the bdling mones of October through April. ( MINIMUM: The not minemum charge per monm shal be the cueiorner charge olue the speelcente demand charge spoeied to the monthly billing demand, including applicable ediustment charges or credits. TERMS OF PAYMENT: The not erncmant of the edi is due within fourteen deys as shown on the bili. If not poed within that time, a tote paymet sonnes charge of five percent 5%I wdl sono be due. Such late povmont service charge will not be essessed pnor to one fuit doy follownng the due dese. ORDER OF BILLING: All charges and discounts shal be hdied in me order in which they are presented in this tariff. ELECTRIC FUEL COMPONENT: The energy charge sheet be ediusten to inctude the current cost of fuel consumed to produce efectne energy in compliance with Rule 4901:1 11 of the Ohio Adminestratrwe Cooe. as reflected in the Electric Fues Comoonent Rider en Sheet 43A of this tentf. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges under this schedule sheti be actuated in accordance w m the surcharge for recovery of incroceed Ohio Gross Rece. pts Escase Tom as set forth in Rider No. 2 of this tantf. MONTHLY BILLING DEMANO: The customer's monmfy dernand shesi be the highest fifteen (15) minute kilowott empere demand determined by drveding the highest kdowett demand attaened during the month by the everage monthly power f actor. Any leading power factor shall be considered as unity. This sheet filed pursuant to the Order in Case No. 814204L. AIR of the Pues.c utilite Comm.ssion of Ohio, dated June 9,1982 and the Entry dated July 7,1982. ( Cone.euco na sheet Nn is issued: July 14,1982 issweo bv Jonn P W.H.amson. C4eman Effective: July 14.1982 Ed. son Mata. Toiece. Ch.o
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l 1 l THE TOLEDO EDISON COMPANY Totodo. Omo P.U.C.O. No. 6 Eleventh Revened Sheet No.15 LARGE GENERAL SERVICE RATE "GS 12" MONTHLY BILLING DEMAND (Contenhed): (1) Off Peen Option: A customer may roovest the instellation of soproonste metermg and timeteesd recording cousement so thet the Monthly Billing Demand may be determmed under this opoonel provision. Such customer shall pov the added cost of the new metonng and recording system in encoes of the cost of a stenderd metenne system for a simder customer of thee rees esess.There sheil also be en addiconel Customer Charge of $25.00 per month. Election of this canon shed be for e meimum term of one year. Under tfus cotion the mesimum monthly demand shen be subeest to redetermmation es follows: If the customer's actual meewmim monthly demand occurs dunng off 9eek hours,the customer's mesimum monthly comend for biHing purposes will be the actual monimum monthly demand less one4ietf (%) of the difference between the actual memirnum monthly demand and the hignent demand attained during the on peem hours of tfie some month. For purposes of thes calculation, off 9eest hours are oil hours in each day, emcept the hours between 0000 hours (8:00 emJ and 2200 hours (10:00 pm), Mondey thru Friday, eassuding legal holideye specified es esemot by the company. These holidays are New Years Dev, Good Friday, Memonal Dev, independonos Dey, Labor Day, Thanksgiving Dey ed Chnstmas Dey, and Mondeye which are legsafy deepeted as e day of otnervance in lieu of the ecove holidays when they occur on weekend deva. (2) Minimum Billing Demede* The Minimum Monthey Billing Demand shool be the monthly demand but not less then: (al Fifty percent (50%) of the highest monthly comed esperienced withm the ses monttu period ending weth the month under conodorecon; or (b) One hundred fifty (1501 kilovoit4moores;or (c) Forty-five (451 KVA or one hundred fifteen (1151 KVA for those customers hovmg demands less then one hundred fifty (1501 KVA and who are receiving service at 4000 vosts and higher on the effective dose of this rate: corresponding to 40 KW end 100 KW as was m effect for efiem at the turne of the soping of their contract on this rete's predecessors. (3) in the event the therectonetics of the customer's load are hegnty fluctuetmg as in the cess of eievotors. hoists, crenes and simder sou.pment, the Monthly Bitting Demand in kolovoit emoems shall be samty percent (60%) of the fe namentese reting of the eoveoment. (4) The Comoony moy, et its cocon, determee the demand and/or power factor cononuously, monthly o'r at other repeer intervess. (5) in the event the Commeny,in order to prevent voltage fluctuettons or disturbances on its system requires the customer to insted a neoerste transformer or transformers to provide service for x<ey mechmes.woeders, and other eouiomont hovmg amder chorectenstics, such serv co she#8 be metered and billed secerately from the customer's omer servece. The Monthly Bitsing Demand in kilovolt emoores for such neoersie serv ca sheil be seventy percent (70%) of ttie kilovoit empero namesiste retmg of the Cornoeny's stonderd site transformers l roouired. TR ANSFORMER DISCOUNT: ) A discount on the demand charge of thirtydive cents (35 centsi per month per kilovost+ moore of Monthly Sitimg Demand will be made to any customer tekmg so vice at 4000 voies or hegner wee fumisnes ail transformer l i eeusement. Any customer whether served at secondary or onmery voltege and receiving a discount es of the effective date of this rete for hovmg meteilwd his own transformers witi contmce receiving this discount. PRIM ARY SERVICE DISCOUNT: A discount on the not bell. esctudmg fuel crierges, of three and onedielf percent (3%%) will be made to any customer recorving pnmary service and owning trie substation, m comohance with the Terms and Conditions section of thes rete. ( This sheet filed pursuant to the Oroer m Case No. 81420 EL. AIR of the Public Utileties Commession of Ohio, dated June 9.1982. l Coatiaveo nn Sheet No t 6 Issued: June i t.1982 issueo ov Jonn p wi a.amson. Chairman creectae. sune I. W U l Edison P'ata. To'eco Ohio l l
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} i I THE TOLEDO EDtSON COMPANY Eleventh Revised Sheet No.16 P.U.C.D. No. 8 Toledo. Ohne LARGE GENERAL SERVICE RATE **GS 12" NON. STANDARD FREQUENCY CHARGE: The total bdi shall be increased by 25% for the remoning customer being served et 25 Hertz. DELIVERY VOLTAGE: f (1) Secondary Service: f This service covers the susoey of three phens,60 Hert:t etterneting current, et the Comoeny's stonde secondary voltages, and those who, as of the effective dote of this rate, are served at 4000 voits or higner l primary but are not macolying their own substations. l (2) Prvnery Service This service covers the napody of three phase. 60 Hertz setemsong current et no less then 4000 voets for customers cuenme the sabstetion. Customer receivmg service et 25 Hertz wdl conunue to be serviced as long as such supo4y is eveitable but no additionsi 25 Hertz service wdl be provided. No additional inste6 et 4100 volte 6n the Company's present underground dietnet or any estenson thesof,will be served et thi rees. _ AN current on this service vnit be measured at the service voitsge of 4000 volte or higher.The Company l shall hose the opoon of metering et secondary voitegs and ediusong to e onmary metersng beeis by the use of :omeonesung meeers or by estimate bened on the resed transfo-mer tosses. l TERMS AND CONDITIONS: (1) Service under this rete is sapotied in accordance with the Rules and Replations of the Cartmeny and is
' subsect to the juradiction of the Pub 46c Utilities Commission of Ohre.
(2) The Comoeny will construct the pnmary voitegs eine to the customer's property line and w.is fum sh and instoit the first noen of conductors on the customer's property to the customer's structure. ( In the event that more than one spen of onmery voltage circuit is required on tee customer's procerty, the customer suit fumish, install, own and mentain the necessary structures, conductors, and reisted onmery voltage line equipment. The dempt end construct >on of a4 aucft factlities shall be subrect to the Company's approvet. (3) Subetstion facilities necessary for utilization of power es delivered to the customer's promises shell be the responestblity of the customer. Such focaisties snett include (but shall not be limited tol protective fences, supporting structures, fine voltage bua, transformers, swetchgoer, protective devices. voltage repletors, etc. Focuired to receeve, transform and dedivvr service to the customer's utditation ocusoment. The design and construction of the mJbetstion and the reting and specificatiorts of tfie electricef sousement sheit be subject to ocoroved by the Comoony. When, in the tudgment of the Company, ct cust breakers are roovered in the customer's substetton for assunng the continuity of servece to the customer or for the protection of service to other customers, the customer she61 fumesh, install, own and mantem such circuet bresmers voith rating as specified by the Company. (4) The customer she68 provide.witticut charge to the Company,the necessary space. structure and foundations for the Company's metenng ecuoment and instruments and snait permit the Company to have access to the premrses at all times. (5) The Comoeny snail have access to the premises at aff times. All eouipment fumished by the Comoany sheti ' be and roman the procerty of the Company. (6) The customer theit provide ait equioment necessary to reipatate his operations so that the Comoony's pnmery l voltoge sheit not be subiect to excessive venation. This sheet filed pursuant to the Order in Case No. 81420 EL AIR of rne Public utilities Commession of Ohio, dated June 9.1982. Ccatinued en Sheet No.17 E f fectme : June 11,1982 issued by John P Watiamson. Chairmen issued: June it.1982 Edison Ptere. Totodo. Ohio _ _ 2
THE TOLEDO EDISON COMPANY Tosedo. Ohio P.U.C.O. No. 8 Ninth Revised Sheet No.17 LARGE GENERAL SERVICE RATE "GS.12 TERMS AND CONDITIONS (Continued):
- 17) For the prosecten of the Company's facilities, ttvs customer may be required to fLmish. install, and meinteen a load limidng device soproved by end under the sole control of the Company.
(S) Where the customer deares lighang sorwce incidental to his pomer requirements such service may be purchmond under this rete provided the customer fumiehes the additional tronoformers and all other equipment nessenery. All such incidenset lighting shell be metered through the posuer meter. (9) The customer she 1 use outraordinary core in so desegning his circusts that the loads on the endividual phases sheet be practicealy betenced et oil times. TERMS OF SERVICE & CONTRACT: Servios shall be suopoied et the legal resse in effect et the time service is rendered for the follouving terms with a sesfM primasion for successeve penods of one year each urmi either party sheel pve et least ninety devs written notice to the other of its intention to discontmus et the end of any period. Contract Cesacity Term of Contract Up to 150 kilovostm 1 Year 100 to 1000 kilovoetemperse 2 Years Over 1000 kilovottemperes 3 Years This sheet filed oursuant to the Order in Case No. 81420 E L AIR of the Puebe Utihties Comassion of Ohio. cateo June 9.1982. Issued: June 11,1982 issued ov Jonn P Will.amson. Cha rman c uective. .. n o . . voi Edison Piera. To'edo. Om.o
l THE TOLEDO EDISON COMPANY Toledo. Oh4e P.U.C.O. No. 8 Thirteenth Revised Sheet No.16 OUTDOOR NIGHT LIGHTING RATE "G813" , APPLICAslLITY: l Amie to any customer on tfwe lines of the Company espeying for outdoor night lighting servies only, for reso troche and athletic fields of e64 kinde who sheil contreet for e definite quantity of electncel capacity in kiloinetts. l motgest to the specific conditions est forth herein. MONTHLY NET R ATE (Two Ports): i (Il Cuesomer Charge 810.00 , 42) Energy Charge Per Kilowett-Hour 432E 2 MINIMUM: The minimum bill sheel be the monthly customer charge. TERMS OF PAYMENT: The not amount of the bat is due wimin fourteen days as shosun on the b481. If not pens within that time, a lete l 3 payment service charge of five percent will eles De due. Sum less payment service charge will not be essessed pnor ' to one full day follosumg the chse date. ELECTRIC FUEL COMPONENT: The energy charge shall be ediusted to include the current cost of fuel consumed to produce electric energy in compliance with Rule 4001:1 11 of the Ohio Administrative Code, se reflected in me Electric Fuel Component Rider on Sheet 43A of this innff. EXCISE TAX SURCHARGE ADJUSTMENT: l Monthly chargse under this seedule shall be ediussed in socordance wem the surcharge for removery of increened Ohits Gross Receets Escies Tee se est form in Rider No.2 of this tenff. ACCOUNT ACTIVATION: The initsel bill for a new customer or a customer et a near locetion sheel include en encount actwetion charge of 38.00. 6 TERMS AND CONDITIONS: (1) Service under this ress se suposted in ecoordenes with the Ruses and Repseations of the Company and is msbeset to the lunedicoon of the Puelic utilities F - of Ohio. (2) Service shool be sucolied only where esfficient caoscity is avoileele without added Cornoeny empense and oney benumen the hours of 6 P.M. to 8 A.M. encept that the time resenction shall be werved on Saturdevs. Sundevs.and Hosidevs.
, (3) The Company shool provide service et primary voltages (soproximete#y 4000 votts or higheel except in small installations where the Company may elect to provide service et secondary voltages.
(4) When in the opinion of the Company it is necessory to provide three phees service, the customer shell use outraordinary care in so desegning his circuits that the loads on the indevedual phe es sheit be practically belenced at ett times. No monthly minimum bill for such three phees sorwice shall be less then $15.00. (5) The Company shoal have the nght to meter oil service used et either primary or secondary voetages, or to estwnete the kilowett hours used by metering a part of the service end multiorymg the metered record of that port by a factor determmed by drviding the tote, connected toed by the connected load of the port that Ses been metered, in the event thet total or partief rnetering se et secondary voltage five (5M percent siell be added to the kalowett4tourt to compensate for additioned trentformer and litie losses. e i This sheet filed pursuant to the Order in Caos No. 81420 EL. AIR of the Puelic Ut:tities Commission of Ohio, dated ( June 9,1982. and the Entry dered July 7.1982. Continued on Sheet No 19 issued: July 14.1982 issueo uw ;omm 7 . .. ..Jmio n . C J r
- in Ef f ective : Just 14.1982 Eo. ion Pian To eoo Ch.o
l l THE TOLEDO EDISON COMPANY Toledo. Ohio P.U.C.O. No. g Seventh Movised Sheet No.19 OUTDOOR NIGHT LIGHTING RATE "GS-13" TERMS AND CONDITIONS (Continued): (8) The customer sheal own, operste, and meentein all pois lines and oil oeer equipment on privere rightefw. together with est transformers, oil circuit bruskers, and ou lighong and incidonal souement neessnery to rencer the serva.The customer shell mawitsin a poner factor of not less then ninety (90%) percent. (7) The term of contract shes be for e poned of not less then two sensecuttwo months (80 days) from date of application and thereafter untd terminosed by the customer, oncept se otherwies provided in the Campany's rules and repletions. ( This sheet filed pursuant to the Oroer en Case No. 81420-EL44R of the Public Utilities Commesion of Ohio, deted June 9.1982. l Issued: June II.1982 issuea by Jonn P. witi emson. Cheerman Etfective June it.1982 Edison Pisas. Toledo. Ohio
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. THE TOLEDO ED!$0N COMPANY I To4edo. ONe P.U.C.O. No. G Thirteenth Revised Sheet No. 20 f PARTIAL SERVICE RATE "GS-15" ,
APPLICA381,lTY t Ateilable to any customer on the lines of the Company applying for service for only a portion of his requiremente ' of siectrical energy including servios for ausdiary, stoney, brookdown and for esceteson purposes who shool guerentes et least one huridred fifty (1501 kilouverts of Contract Demand. i P MONTHl.Y NET RATE (Three Pers): ! (1) Cepecsty charge: Por m of Contract Demand, Per Year 35 30 , (Psysoie in eeuad monely inste44mente)
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(2) Energy charge: ' First 300 KWH ser m of Connect Demered,per lovH 4AN All Aeditional lovH, per lovH 3M (3) Cuesomer eherge: i The Monety Cussomer Charge onest be $125.00 l i 5 MINIMUM: The not minwnum charge per mone shall be me customer charge paus $430 per month for seen KW of Contract ! Demand tone tweifth of me annual cepecity chargel but not les man 3000.00 per month or any fraction of a mone. l l
. t TERMS OF PAYMENT:
l The not amount of the bill is due within fourteen days as shown on the bell. If not poid within that Orne. a late payment service charge of five percent will aeso be due. Such IJte payment service charge will riot be sammesed , pnor to one full day follounne the due date. l ELECTRIC FUEL COMPONENT: The energy charge she41 be adlusted to include the current cost of fuel conasmed to produce electnc energy in compilence with Rule 4001:1 11 of the Ohio Ademostrotrve Code, as reflected in the Electnc Fuel Co.toonent f Rider on Sheet 43A of thee aortff. EXCISE TAX SURCHARGE AOJUSTMENT: [ Monthly charges under this schedule sheel be ediusted in accordance with the surcharge for recovery of increased Ohio Gross Recoes Encies Tam as set forth in Rider No. 2 of this tentf. [ DETERMINATION OF CONTRACT DEMANO: I f The Contract Domend shell be the tctos connected Iced in kdometts of the largest motor or piece of electrical j oousement connected. plus seventy five percent 175%) of all other connected load served through one meter, and such Contract Dornand cien determined sheil,unless additiones causamern is connected by the customer contmue [ 4 for the succeeding nivetve months and subsecuent tweNevnenth penods. In the event the customer should connect ' additional souroment, a new Contract Demand will be determined by the same method as heremeoove proveoed, l and such new Contract Demand shesi contmue for the tworve succeeding months. The customer, thirty days onor to I the expiration of any tweeve*nonth penods of use of Contract Demand,shall have the nght to notify the Company of his intention to descontmue or incranes any connected load for a new contract period. Uniese such notice is received, the contract sheet be contmued and sesf<eneweng for additional penods of tworve months. In no event shese the Contract Demand be less than one hundred arid fifty (1501 kdowetts.
'l The Company, at its option, may fumesh, manteen and operete the necessary souipment whereby the customer's '
actual demand can be limited to the Contract Demand. I I I f This sheet filed pursuant to the Order m Case No. 81420-EL. AIR of the Public Utileties Commission of Ohio, dated i ( June 9.1982 and the Entry dated July 7.1982. l i Continued on Sheet No. 21 assueo : July 14.1982 issued by Jcnn P. Williamson. Chairman Etfective; July 14.1982 l Edison Pf ara. Toledo. Ohio I l i l '
THE TOLED'J EDISON COMPANY Toiseo. Chee P.tl.C.O. No. 3 Tenth Revised Sheet No 21 PARTIAL SERVICE RATE "GS IS" TERMS AND CONDITIONS: (1) Serwise under this rete le suspiied in accordence with the Rules and Regulettons of the Company and is maaseet to the junediction of the Puniic utilities Commission of Ohio. Special ettention es directed to seenone 18,19, and 20 of the " Rules and Regulations Regardmg Custorners' Wiring and lastatistion* (2) The weetage, cycle end phens of energy fumsshed ehen be entirety at the cotion of the Company. (3) Where onmery service (4160 votts and overl is eweilente,it shelt be supolled to any customer. (el in the event a cuesomer is served direetty from the lines of the Company et 4000 volts or higher and said customer fumiehes eN of he transforming and substetion equipment e discount will be made of
$340 por kdowett of Contract Demand por veer (pavente in souel monthly 6rstasiment:L (b) Customers using onmary servios (4100 voets or higherl shell be entitied to e discount amount.no to ten percent (10%) of their total monthly Ddl.
let The Company reserves the right to refuse to instalt transformers, sussistion equipment, etc.,in which case the cueromer will inesen he own eouipment end ;. ..:w-c. and be entitled to the species discount set forth under (el of rule 3 emove. ($1 The Company shall not be roovered to provide service to any customer howmg a posuor faster of less then eighty percent (80%) es determwied by the Company's test et any time. (S) The term of contract shell be for one (1) veer from date of aposicstion and thereafter shell be governed by the provenions set forth herein under "Determinatum e,f Contract Osmo", eacept es otherwee cemW in the Corngany's rules and repiscons. This sheet filed pursuant to the Order en Case No. 81420-EL. AIR of the Pubhc Utilities Ccmmission of Ohio, dated l (' June 9,1982. 1 leeued ny J nn P. Williamson. Chestman 1 1982 Etfective. June 11.1982 Edison Piese. Totoco. Chio
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THE TOLEDO EDISON COMPANY _ Toledo. Oh6o P.U.C.O. No. e Twelfth Revised Sheet No. 27 SMALL GENERAL SERVICE RATE "GS 18" APPLICAslLITY: Aweelebte to any suetomer on the lines of tfw Coevgseny for sonnes for sommercial, industriel, or omer generel use thet does not specificaelv eueilfy for enomer rete. MONTHLY NET RATE: SUMMER WINTER WITH OEMAND METER INSTALLED: (11 Demend Charge: First 50 KW of Monthly Billing Demand,per KW $8.35 86.71 All Additional KW of Monety Gilling Demand,per KW $8.74 35.10 (2) Energy Charge: First 150 KWH por KW of Monely Billing Demand,per KWH S.0 3 5.4M Next 150 KWH per KW of MontNy Billing Demecid per KWH 4.408 3.2M All Adchoonal KWH,per KWH 33W 2398 Gl Customer Charge: Cussemer cherys per mone SD0 SED 0 WITHOUT DEMANO METER INSTALLEDi (1) Demand Charge: For AP KWH,per KWH A.2M 33W ( (2) Energy Charge: For Ali KWH,per KWH 8.00t 5.478 (3) Customer Charge C.astomer cheres per month SEDO $5.00 SEASONAgPERICOS: The Surnmer period shell be the bdling months of May through Seoierveer end the Winter period shall be the bdling months of Octooer tvirough Asris. MINIMUMt The not mmemum charge per reonth shall be the customer charge 06us the ecolicante demand charge ecolied to the i monthly belling demar:d but under no circumstances shell it be sees then $15.00 for three phase serv.co. TERMS OF PAYMENT: l l The not amount of the bill is due within fourteen days es shown on the bill if not paid within that time, e tote ( povment service charge of five percent will also be due. Such late povment service charge will not be essessed preor i [ to one full dev follouring the due esote. ' l ELECTRIC FUEL COMPONENT: i The enettr charge shade be entusted to inesude the current cost of hast consumed to produce e6ectric energy in ( compliance wth Rule 4901:1 11 of the Ohio Administrative Code, as reflected in the Electric Fuel Comoonent l l on Sheet 43A of thes tariff. I This sheet filed pursuant to the Order in Case No. 814204L. AIR of the Public Utilities Commission of Ohio, dated j June 9.1982 and the Entry dated Juiv 7,1962.
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l continuers on sheet No 28 issu co Jusy 14.1982 sisvea av sonn P mai.amson. Cnairman E f f ec tive: July 14.1982 Edison Pfere. Toseco. Ohio
.r THE TOLEDO EDIS3N COMPANY Teleco. Ohio P.U.C.O. No. 6 ~ C=wnrh Revised Sheet No. 23 SMAl.L GENERAL SERVICE RATE "GS-is" EXCISE TAX SURCHARGF. ADJUSTMENT:
Montfuy charges under this schedule shed be adjusted in accortsence with the surcharge fer recovery of increased Ohio Gross Receiots Excise Tom es set forth in Rider No.2 of this tariff. ACCOUNT ACTIVATION: , The ini-iel bill for a new customer or a customer et a new location shall include en account actsysnon charge of SSA0. DETEMMINATION OF MONTHLY 81LLING DEMAND: When the customer's monthly uange exceeds 3,000 KWH for three consecutive months, or the customer's 'and requires transformer capacity in excess of 30 KVA, or upon request by the custorner, the Company will #sia'.I e demand meter to determme the mammum intsysted fifteen minute osmand ettsined et any time dur ng the month. The Monthly Oemand thus established,but not less then fifty percent of the mammum Monthly Demend withm the four month poned ending with the month under consideration, shell be token as the Monthly Plilling Dernand for that month, provided that seed demand shall not be less than 5 kilowers. Once e demand meter has been moeded it shall canonue to be unlized uniens its removal is requessed by the customer and the memimur:t Monthly Cemeno has been below 10 kiloweets for tweeve consecutive months. In the event the cheroconstics of the customer's load are highly fluctuesny es in the caos of elevators, hovets, crenes and similar equipment, the Monthly Billing Demand in kilouverts shell be sisty percent of the horssocear nementete retmg of the equipenent,less fifteen kilowatts. In the event the Company, in order to prevent voltage fluctuations or clisturbances on its system, reouarse the customer to insteil e separete transformer or transformers to provide :ervice for X ray men.ines, weide-o, and other souiomont having similar charactonstics, each service shell be metered and billed separately from the ci.stomer's other serves. The Monthly Billing Demand in kilowetts for such seperate service shell be seventy percent of the kilovoit empero namestate retmg of the Company's stonderd sire transformers required, less fifteen kilows!U. The Comper y moy, at its option, test or meter the power factor of the customer's toed. A laggmg power factor raf less then eight tenths (021 snait be ediusted by multiplying ette demand by the ratio that 0.8 beers to the sewei power factor of the load. No adjustment will be made where the power factor a found to be yester then OE legging Ce for e leading power factor. Monely Billing Demand shall be computed to the closest kilowett. TEMPORARY SERVICE: Service for less men one year will be supplied under this provisaon of this raw w.th each monthly bill for the first three months increased by 30%,provided the Company has sufficient ceascity eveilesie and such torvice woinct be dernmental to the Company's serves to other customers. In sootymg for temporary service. the customer shall pey tfw Company for the cost of meter settmg and removet, sonnes connections, line construction and other special costs msurred by me Company to supoly him. UNMETERED SERVICE: Unmetered service is awedecie to customers for commercial purposes consistmg of contmuous fined etectric loeds not encoeding 15 kilowetts whecn con be served by e stendere servue crec f om the Company's existmg secondary distrrbution system. Kilowert4 tours shed be determmed for each month by temmg tne product of 730 times rne reted or messared toed in kilowatts. Each separate comt of dehwry of service sheH be considered es one sustomer and billed seperately. The customer shed notify tfw Company in advance of ewry change in conrected toed, and me Comoa% *sss<ve. the nght to inspect the customer's ecu!pment at any tir e to venty or meesure the actues ioet in the evem tse customer fails to notify the Company of an increase in loeo, the Comoony theit be entitled to render an ediusteo b li l on the basis of the incrused toad for the fuH penod such load was connected and further reservrs the nght to efuse to previce unmetered service at the denvery comt mereafter. This snut filed pursuant to the Oroer in Case No. 81420.EL. AIR of the Puche Utilities Comm es.cn of On o. cateo June 9,1982. Coconued on Sheet No. 28A issued: June 11,1982 issued by Jonn P. W si.amson. Chairman E f t scrive : June 11.1382 Edison Pfena. Tovedo, Ohio
k l THE TOLEDO EDISON COMPANY ( Toneco. Ohio P.U.C.O. No. S Second movised Sheet No. 28A ( [r SMALL GENERAL SERVICE RATE "GS.18* { i I s TERMS AND CONDITIONS: L (1) Serwce under this rete is supplied in accordence with the Rules and Regulations of the Company and is . subject to the junsdiction of the Public Utilities Commesson of Ohio. (2) Service unoer this rete she6B be esterneting current. 80 Herts, single and three pheme et the ,ompany's ( standard vossess. (3) Customers who essere comeined light and power service on this rete,as such service becomes sweetenie,shell ! make such changes in their wiring and/or equipment es may be necessary to receive all service from the I Company's four wire secondary system. l I' (4) The term of contract shall be for one year from date of ecolication and thereafter unal terminated by ten days wntten notes from the customer to the Company, excmot as otherwise provided in the tenworary servce cleues of this rete or in the Company's rules and replacons. I 6 I I i I r ( I i l. t I [ I a P l l I l
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l I This sheet filed pursuant to the Order in Case No. 81420 EL AI A of the Public Utilities Commimon of Ohio, dated ' ( June 9.1982. l i issued: June 11,1982 issueo Oy Jonn P Wilhemson. Chairman c H'Ct'we. sune i 4. 4 :roi Edison more. Toledo, Oh o i
THE TOLEDO EDl5CN COMPANY Toledo. Ohio P.U.C.O. No. 8 Etownth Rev sed Sheet No. 30 GENERAL SERVICE HEATING RATE '13817" APPLICASILITY: THl3 RATE IS AVAIJ8LE ONLY TO THOSE CUSTOMERS RECEIVING SERVICE HEREUNDER AS OF AUGUST 1,1975 AND THOSE POTENTIAL CUSTOMERS WHO CAN DEMONSTRATE TO THE COMPANY THAT THEY HAD CONTRACTED FOR THE PURCHASE CR INSTALLATION OF ELECTRIC SPACE HEATING PRIOR TO AUGUST 1,1975. Ave.seble es en opconal rete to any commerciel customer on the lines of the Company spoly*cq far permanent service for commercial uses including lighting, space heating, unconcelled weter he, ting and incidental uses. MONTHLY NET RATE: SUMMER WINTER WITH DEMAND METER INSTALLED: (1) Demand Charge: First 50 KW of Monthly Silling Demand,per KW SS.38 5 .71 All Addisonal KW of Monthly Siiling Demand,per KW W.74 B.10 (2) Energy Chergr First 150 KWH per KW of Monthey Billing Demand,per KWH GDtB 4.7M Neat 150 KWH por KW of Monthly Billing Doms.w,per KWH 4Act 2.908 All Aetfitional KWH,por KWH 3.9M 2.95 (3) Customer Charga: Customer charge per mone 5 40 $5,00 WITHOUT DEM AND METER INSTALLED t (1) Demand Charge: For All KWH,per KWH 4003 3.65C (2) Energy Charge: For ed KWH,per KWH 8.00E 4.798 (3) Customer Charge: Customer charge por month 2 .00 35.00 SEASONAL PERIODS: The Summer pened shall be the billing months of May through September and the Winter pened sneal be the billing mones of October through Apnl. MINIMUM: The not mmernum charge per month snell be the customer charge plus the sope.cecie comend charge ecobed to the monthly billing demand but under no circumstances shell it be sees then $15.00 for three phase service. TERMS OF PAYMENT; The not amount of the bill is due withm fourteen oeys as snown on the bill. If not paid withm that time e late payment service charge of five percent will easo be due. Such love payment service charge will not be essessed onor to one full doy following the due date. Then sheet filed purvuont to the Order in Case No. 81420-EL. AIR of the Puotic Utilities Commission of Ohio, dated June 9,1982 and the Entry osred July 7.1982. Contin ed on Sheet No 31 assuso. Juiy 14.1982 issvec ov Joan P .*teis.amsca. Cas.,msn Ef fective: July 14.1982 Edison har3. Taieoo. On.o
THE TOLEa)O EDISON COMPANY Toledo. Oh6o P.U.C.O. No. 6 Twotfth Revised Sheet rdo.31 GENERAL SERVICE CLEATING RATE "GS-17" ELECTRIC FUEL COMPONENT: The energy charge shell be ediusted to include the current cast of fust conmamed to produce electric energy in compliance with Rule 4901:1 11 of the Ohio Administrative Code, as reflected in the Electnc Fuel Component Rider on Sheet 43A of this tenff. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges under diis schedule shell be ediusted in encordance with the surcharge for recovery of increased Ohio Grom Receios Encies Tex as set forth in Rider No.2 of this tariff. TR ANSFORMER DISCOUNT: A discount on the demand charge of twentyJive cents (8.251 per month per kilosuutt of Monthly Billing Demand will be made to any customer mestmg the pnmary sonnce aussifications as stated in Terme and Conditions (Rule ; number 7). POWER FACTOR ADJUSTMENT: The above rete is bened on the mantenance by the Company of a power factor of not less then eightyJive percent (85W. For any month when the lawng poseer factor is less than eighty-five percent (36W the Company sheil rneke i en additiones charge of one percent (1W of the total bill for each five percent (5W difference between the lessity pauser factor and eighty five percent (85W. The Company moy, et is option, test the power factor contmuously, monthly or et interveis DETERMINATION OF MONTHLY BILLING DEMAND: When the customer's monthly usage exceed: 3.000 KWH for three consecutrve months, or the customer's load requires transformer caoecity in excess of 30 KVA or upon reauest by the customer, the Company will insteil e dernand meter to determine the maximum in ograted fifteen minute comend attained et any time dunng the month. ( The Monthry Demand thus esteolished, shall be taken es the Monthly 8illing Demand for that month. prov.ded that seed demand shall not be les then 5 kilowetts. Once a demand meter hee been insteiled it shell continue to be unlised unsees removed is roouested by the customer and the memimum Monthly Demand has been below 10 kilo-werts for tweeve consecutive months. Service under this rete is evealetie to public schools, parochiel schools, or churches which ouelify. The Monthly Demand Charge for schools shest be reduced by 50%. The Monthly Demand Charge shall not apply to churenes. The Company may. et its opnon, test or motor the power factor of the customer's food. A leggmg power factor of less then eght tenths (03) shall be ediusted by multiplying the demand by the ratio that 0.8 bears to the actual power factor of the Iced. No ediustment will be made where the povuor factor is found to be poeter then OA legging, or for a leading poseer factor. Monthly Silling Domen1s shall be computed to the c.tosest kilowert. TERMS AND CONDITIONS: (Il Service under this rate is supplied m accordance with the Rules and Regulations of the Company and is authect to the junediction of the Public Utilities Commession of Ohio. (2) In order to cualify for thrs rete the customer must meet the followmg conditions: (el Electncity shall be the soie source of energy for space heetmg. water heetmg. eer conditionmg, lightmg. and pommer scoucations. (b) At leest 50% of the connected load shell be iocerad msede of bui! dings that are electriceity heeted. (c) Size and e+ectncel cherectoristics of water heating souipment to be used must be approved by the Company. (3) Service urider this rete shest be esternetmg current. 60 cycles smgse and three pheme et the Comoony's standard voltages. Direct current or 25 cycle service shall not be suoptied at this rete. This sr. set filed pursuant to the Order in Cue No. 8:420 EL AIR of the Public Utileties Commiss.on of Ohio. cated June 9,1982. Conemueo on Sheet No. 31 A assue i:iv John P. Wilseamson. Chairman issued: June II.1982 poison e, ore. Toledo. Oh.o " ' #
THE TCl3DO EDISON COMPANY ( Tosede. Ohm P.U.C.O. No. 8 Second Revised Sheet No. 31A GENERAL. SERVICE HEATING MATE "GS 17" TERMS AND CONDITIONS (Continued): (4) Electncity for incidental power ecolicatione may be mapplied under this reto. (5) For connected loads of less then 300 kilowerts. the term of contract shool be for one year from dote of ecolication and thereafter until terminated by ten (10) deve written nodce from the casstomer to the Comenny, oncept as otherwee provided in the Commeny's rulee and regaletions. (6) For connected leeds of more then 300 kilowetts the term of the contract shall be for three veers from dote of meetication and thoroofter until termmated by sixty (60) days written notice from the customer to me Comoony, escent as otherwise provided in the Company's rules and requietions. (7) The Comoeny reserves the right to refuse to insteil transformers, sutistation equipment, etc., for instellations of over 300 kilowerts in whech case the Company will supply onmary service and the customer will instets his own transformers, substation equiomet etc. When a customer suposies his own trer.sformers, substerion eeuement, ese and is served at 4160 volts or higher he shall be entitled to the Treneformer Discount. (S) When service is suouisd et onmery voltage the Company may. et its option, meter et the pnmery voitogo: or, et escondary vottige with componention to e onmary t>ms. (9) The customer shell use entraordinary care in so designing his circuits that the load on the individual phases theit be practically benenced at all times. I l I l This sheet filed ;marsuant to the Orcer in Case No. 81-620-EL AIR of the Public Utilities Commission of Ohio deteo June 9,1982. Issued by Jonn P. Witi.amson. Chairman
'""** A'"' U # 2 Edison Ptese Toledo. Ohio EHectwo: June M .1H2
THE TOLEDO EDISOra COMPANY Toledo. Ohio P.O C.O. No. 6 Tenth Revised Sheet No. 33 OUTDOOR SECURITY LIGHTING RATE
- tis 18" APPLICA8tLITY:
Aveslebie to any customer on the lines of the Company recomne servie for gens Tel usse et secondary volages soplying for sal night outdoor ligneng service on private property. Complete tigheng service will be fumished by the Company usne vapor lighting units conneced to eveilable supply . , circuits. The Company mil supply the electrical energy for opemtion of the light and will fumish, insmil and l mainmin me lighone finiure, bracket, contro' unit,lemas, wiring and eel other neemmeery memoriais and souipment. NET RATE (For Month): ill Service conssting of a atendard 175 west mercury lighting unit on a sanoord no(v1 pose mth overhead winne: For instealecons pnot to January 1,1974 on esisting pose with SEAS secondary voltage supply evealele,per light For inantlecons after January 1,1974 on omisting pois wrth 37.10 secondary voinge supply evestable, per light (2) Service conssong of a 400 weet mercury or a 200 weet sodium floodlighting unit on a senderd wood pose with overhead wiring: For irwellation on esisting pose mth secondary voltage $12.35 naco#y eveitale, per light (3) Service conmating of a 400 weet sodium floodlighting unit on a standard wood pose with overhead wiring: For installecon on eneting pose with secondary vo'tege $1630 ( auopty eveelable, por fight (4) No new services for 100') wett mercury floodlighang units on standard wood poses with overhead winng will be insteded: For emoting installations on existing pose with secondary $23.75 voltage sugory evealele, per light (5) For instmalet one onor to January 1,1974 reouinns en additionel $2.15 pois sid noen of overhead orcuit,en additionel charge per pole For installations efter January 1,1974 reouaring en additionsi $4.20 pole mid soon of overfiend circuit,en addinened charge per pose (el For instestenone on essenne poses but roguering en enveneson of 8 .95 the secondary suspey ortust, en additional charge per overhead span (7) Service conosting of a stenerd 175 weet rnertury lighong unit on a standerts wood pose with underground winng-B [ For insteitation on a wood pose within fifty feet of emoting $13.15 I seconcery voitage supply, per light For insmilation of unoorground wnng in excess of fifty feet, S 65 por twenty-feve foot increment (8) Service cons,stmg of a 175 wert decoretrve post too mercury lighting unit with underground wring: For instellemon on a decorative pose within fif ty feet of $10.75 , onesting secondary voltage supply, per tight
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For mstasiation of underground wring in excess of fif ty 3 65 feet,per twenty.five foot increment This sheet filed pursuant to the Order in Case No. 81420-EL AIR of tne Public Utilities Commession of Ohio, dated June 9,1982 and the Entry dated July 7,1982. Cenneued on Sheet No. 34 issuso. susy le,1982
- issueo ov .cna * , e m.4mc a ? oma E f fective Juiv 14,1982 Eoison han. To eco. Ch.o
THE TOLEDO EDISON COMPANY To6edo. Ohio P.U.C.O. No. 8 Tenth Revised Sheet No. 34 OUTDOOR SECURITY LIGHTING RATE "GS-18" TERMS OF PAYMENT: The not amount c,f the bill is due within fourteen days as shown on the bill. If not paid within that time, a late , payment service charge of five percent wdl eleo be dus. Such late payment service charge will not be assessed prior j to one full day following the due date. Billing for service unoer this rete is to be made part of the bill for other electric service furnished the custorner. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges under this schedule shell be ediusted in accordance with the surcharge for recovery of incrossed Ohio Gross Rece oo Escase Tan as not forth in Rider No. 2 of this tentf. TERMS AND CONDITIONS: (1) Service under this rete is supplied in acconsance with the Rules and Regulations of the Comeeny and is maasset to the junediction of the Pubeic Utdities Commission of Ohio. (2) All facilities necesary for !!ghong service shell be and romsen the property of the Company.Metenais used and equipment styles shall be as determert i i by the Company. (3) When utda with underground winne are to be iness44ed,the customer shool be resoonabae for paying the cost of any conduit required as weel as any excess coes of trenching resulting from rock or other adverse soil condicons. (di Lights provided under thes rete shes oeersse from dust to down every mght,operstmg aeproximately 4200 hours annually.
, ($) All service, redamomg and maintenance well be perforryweis only during the regular scheduled working hours.
Redamemg and mantenance wdi normally be comp 6eted within 48 hours after notification by the customer. (6) Terms of contreet for service under this rete shall be two (2) years and thereefter for units with overhead winng and f~rve (5) years and thereafter for units with undeeground wormg untd termmeted by ten (101 days wntten notice from the customer to the Company, except as otherwise provided in the Company's rules and repalecons. (7) The servase supotied under tfus rete is offered for lighong of pnvete property and is not eveelee6e for public thoroughfare lighong by municacesities or other poditscel sutxtivisions. (8) Upon the request of a customer for the instellation of eight or more lighs to be served from a smges source, the Company wdl extend an existmg anmary vaatege supoty circuit and insteil approonste treneformer equioment. In sucn cosas the customer wdl pay to the Company in advance e contnbution in aid of construction eaume to the total cost of the instenation of the primary voltage sucedy circuit inctudmg poses. conductor, transformers and amociated souisment. This sheet filed pursuant to the Order m Case No. 814204L. AIR of tee Pubhc Utahties Commission of Ohio, dated f- June 9.1982. 1: sued: June 11.1982 issued by John P. Wdl.amson. Chairman Effective : June 11.1982 Edison Ptsaa. Toledo. Ohio
THE TOLEDO EDISON COMPANY Tosedo. Ohio P.U.C.O. No. 8 Thirteenth Revised Sheet No. 36 i CONTROLLED WATER HEATING RATE "GS.1fr* APPLICASILITY: Amilabas to my custwier on the lines of the Comossy, recewing service et econdary voinges, applying for permaient electric service for weser hemelag,in eisetric woor heeters or as a supplemental source for soter wever heating syesome. MONTHLY NET RATES (Two Pers): (1) Customer Cherse $2.00 (2) Er.ergy Charge Por IGlowett-Hour 2.23B MINIMUM: The minimum bili shall be the monthly customer charge. TERMS OF PAYMENT: The not amount of the bill is due within fourteen days as shown on the bill, if not paid within that eme, e inte payment sonnee charge of five percent weil eino be chse. Such les peyment service charge will not be sensesed enor to one fusi day followmg the ese dem. ELECTRIC FUEL COMPONENT: The energy charge shell be ediussed to include the current cost of fuse conasmed to produce efectne energy in comotience with Rule 4001:1 11 of the Ohio Adensnistrotrve Code, as refasesed in the Electric Fuel Component Rider on Sheet 43A of this tenff. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges under th6 scheda e shall be ediusted in accordenes with the surcharge for recovery of increased Ohio Greas Receios Emesse Tem a set forth in Rider No.2 of this tentf. TERMS AND CONDITIONS: (1) Servce under this rete is sucofied in accordance with sie Rulee and Regaletions of the Company and is sutnect to the junsdienon of the Pui.shc Utilities Commesseon of Ohio. (2) The serves suoplying electne energy for water hosting under mis rete shed be controlled try me Corroeny and the bours dunnJ which serv'ce shell be suoplied mov be changed from nme to eme, coneseront with changes in the Corrgeny's load conditions. Service sheil be napolied hereunder for a period of not less than twosve (12) hours in each twenty four (24) hours. (3) The Campany reserves the right to refuse sonrice to water heetmg sousement which it considers uneese to render satisfactory service when coereted in encordence wrth the reouaremona of this schedule. The Company does not warrant satisfactory service, coeretion or insmitation of non4cmpany asoolied cousement. This sheet filed pursuant to the Order in Case No. 81420-EL AIR of the PutWie Utilities Commess.on of Oneo, dated June 9,1982 and the Entry dated July 7,1982. Issuso: Jusy 14,1982 issueo or en * .9.n.4 m s e n :n.,m.n E f f ec t.we : Juiv 14.198: Eo son Pissa. Toieco, ch.o l l
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m . 1 l THE TOLEDO EDISON COMPANY Toledo. Ohie P.U C.O.No.6 Thirteent: Revised Sheet No.37 ( LARGE POWER RATE "PV 44" APPLICASILITY: l ! AvaileDie to any customer en the lines of the Company apo#ying for permanent service who shall contract for not ! less then aim humored fifet (8801 KVA of cepecsty at a nomined voltage level of four thousand one hundred sisty (41001 volts or encre. MONTHLY NET RATE IThree Perseh l Nominal service voftege Ailovolts IPnenery) (Seds-TrensJ 4.16 17.47 7334549 138 (1) Demand Charge- Per KVA of Monthly 8 thing Demsid First 1000 KVA S10.11 30 59 39.26 Neat 29000 KVA $0.97 5 .42 39.18 Addisonal KVA N25 W.76 $3.50 (2) Energy Charge: Per KWH First 300 KWH per KVA 1385 1.73M 11348 of Monely Billing Demand Addioonal KWH .38 5 .76 5 .71 32 (3) Customer Charge- Per Month
$200D0 $1.500.00 32.500.00 MINIMUM:
The not minernum charge per month sheit be the customer energe plus the spaticable demand charge aposied to the monthly biHing demand. including applicable odeusement charges or credits. TERMS OF PAYMENT: The not amount of the bill is due within fourteen days as shown on the bi48. If not pa.d withh1 thet time. a late payment service charge of five percent (5%) wdl esso be due. Such late payment service charge will not be essessoa onor to one fusi day following the due date. ORDER OF BILLING: All charges and drecoundiall be belied in the order in which they are presented in this tertff. ELECTRIC FUEL COMPONENT: The energy charge shast be adiusted to include the current cost of 'ues consumed to produce e6ectric energy in compliance w.th Ru6e 4901:1 11 of ine Ohio Administrative Cooe. as rettected in the Electric Fuei Component Rider on Sheet 43A of this tariff. EXCISE TAX SURCHARGE ADJUSTMENT: Monthly charges unoer this schedule sness be adeusted in accordance with the surcharge for recovery of increened Ohio Gross Receipts Excise Tau et set forth en Rider No. 2 of this tariff. POWER F ACTOR ADJUSTMENT: The above Rate is based on the mantenance by the customer at all twnes during ene month of a power factor not less then the power factor at the tiene of mesimum montney demand. For any month venen the everage lagging power f actor is less then eignty.five (85%). the Company snest maae an additiones charge of one percent (1.0%) of the total bill for each frve percent ($%) difference between the average laggeng po=ser f actor and eignty deve percent 185%). The everage tagging power f actor snais be cetermined from the meio atteours and tne iagging reactive kilovoltemperediours suopsied to the customer during the month. This sheet filed pursuant to the Order in Case No 81420 E L-AIR of the Puosic Utilities Commission of Ohio. catea (. June 9.1982 and the Entry dated July 7.1982. Cant.nuen on Sn*** % 'S ' lasvaa: July le.1982 issuin.t av .cnn > . i.ia .- f 3. an E ttect.we Juiy 14 1962 Ea.unn Pisis ts coo cn.o I
THE TOLEDO EDISON COMPANY l Toledo. Ohio P.U.C.O. No. 6 Elevenin Revised Sheet No.38 LARGE POWER MATE "PV ad" l l MONTHLY SILLING DEMAND: The customer's monthly demand shall be the highest thirty (303 minute inteysted kilovoltempere demand attained dunng the month. Any tesding power factor shall be considered as unity. (11 Off-Peek use. I If the customer's monthly demand occurs dunng off 9eek hours, the customer's Monthly Billing Demand I will be the monthly demand less two-thirds (2/3) of the difference between the monthly oemend and the hignest domed attained dunng the onssaa hours of the some month. For purocess of this coaculation, off 9eek hours are ail hours in each day, except the hours between Omo houn (8:00 senJ and 2200 hours (10:00 pen.) Monday thru Fnday, excluding legal holidays specified as enamot by the Company. These holidays are New Years Day, Good Fnday, Memorial Day, independence Day, Labor Day, Thanksgiving Day and Christmas Day, and Mondays which are legasy designated as a doy of observance in lieu of the above holidays when they occur on weekend days. (2) Minenum Silling Denande: The Monthly Bilting Demand shall be the month'y demand but not less than: (a) Saty-five percent (65%) of the highest monthty'demed 'exponenced durmg oncesk hours withm the most recent October, November, December, January, February, March or Aonl: or (b) Seventy five percent (75%) of the highest monthly demand experienced dunng onseek hours within the most recent May, June, July, August or September: or (c) Sa hundred fifty 1650) kilovoit emperes. TR ANSFORMER CHARGE: In the cast, the Comoany has agreed to 0 evide standard onmary transforme s and protective equipment to the customer on an optional basis er an adccional charge cf thirty five cents (354) per month per KVA of billing demand. This provis.on continues to de avedaoie for all custorat s receivmg such service on the effective date of this rate but such provrsion will not be avoitanie to any additiortet customers. SUBSTATION CHARGE: The Company rs willing to fumrsh the yestation electncat equipment sufficient to supply the customer's contract capacity. The said substation equioment shall be of the Company's standard retmg and specifications to meme one voltage transformation. The Comoeny wilt own and maintem the substerion equipment for the customer for a monthly charge computed at 1.50% of the Company's total mustment m tne instaltetion. If the customer elects to have the Comoeny furmsh such facilities, the customer shall provide the necessary site and fumrah, instaal and memtam the foundations, structures and fences. The customer shael reimburw the Company for costs of installation of efectncat eouipment fumished by the Comoony. The monthiv charges as provided for herein snais corunence witn the completion of oovioment installetion t.v the Company, in the event that the amount of the Company's investmen m such substation electnces facilities is meressed or decreessa due to change in amount of caoacity provided or to etaier causes tne montney charges snail be ediusted to rettect such change m the amount of the Company's mvestment. If the customer snail subsecuently desire to purenase such substation electrical equipment, the Company will seti the equipment at the dooreciated market value at such time. DELIVERY VOLTAGE: Delivery vostage wist be specified by the Comoeny predicated upon ene avaii acihty of emes m the viemity of tne customer's premises and commensurate with the sue of the customer's toad Customers with demands in excess of twenty five hundred 12.500) KVA anal generasiv be served at twenty.tnree enousand 123.0001 voirs or nigner. while customers with demands in excess of thirty thousand (30D001 KVA weil generally be served at sistvene thousand (69.0001 volts or higner. a, t pursu.2r t n ene: Gerter n C si % 31 C0Fs e t N . .. . . '
* - Nu. 6 Lie Des La mwon on On.o. osted h,m '_' .19C cm.n,i,o en sn.,e No 39 issued av Jonn P ,%81.amsor Chairmaa I m ed- June 11.1982 E f fective: June t 1.1982 Edison Pista. Toiedo. Onio
THE TOLEDO EDISON COMPANY Toledo. Ohio P.U.C.O.,No. s Eleventh Revised Sheet No. 39 LARGE POWEM AAT& "PV 44" If changme conditiors on the Company's electrices system make conunuetion of esublished voltop to tfie customer imoractical, the Company will offor the customer the siternatives of constructing his own feedices se as to conunue receiving torvice et the previous voltage, so long as it does not adversmey effect the inmenty of the Company's system, or, accoot service et the new volage. TERMS AND CONDITIONS: (H Service under this rete le mpplied in accortience with the Rules and Reguistions of the Company and is subsect to the junesienon of tfie Public Utilities Commesion of Ohio. (2) This rou covers the suosiv of three phase,80 Hertz alternering current et not less then four thousand (4.0001 volts. All energy et this rete will be measured et the service voltage of four thousand 14,0001 voets or higher escoot in och cases where the Corneeny elects to mesmate et secondary voltage, if energy is mesured et a secondary voiWOs, the Company may, et its option, adpust the reading to e prirnery metering besse by the use of compenseeng eneters or by en estimate beood on the resed transfo<mer losses. (3) The Commeny weil construct the a_. m or detnbution line to the cuevomer's procerty line and wdl fumash and inesati the first span of conductors on the customer's property to the customer's structure. In the event that more then one seen of line is roouired on the custorner's property, the customer vnit furnish inemat, own and monnin the nessenery structurse. conductors and reseted line souipment. The demgn and construction of eli such facilities shess be subiect to the Comoeny's soprovel (4) Subosorion faciisties necessory for utisiastion of power as dehvered to the customer's promises shed be the rempormbility of the customer. Such facilities shais inctude (but shell not be limited tol protective fences, macoereng structures, line voltage bus, trensformers, switchgear, protective devices, voltage regulators, etc.roovered to receive, transform and dehver service to the customer's utilisation eouipment. The design and construction of the suustation and the rating and specifications of the electrical equip-ment shall be subsect to enoroies by the Compenv. When, en the judgment of the Company, circuit breasiers are reouired in the customer's substation for assunng the continuity of service to the customer or for the protection of service to other customers. the customer sheel furmsh, insteil, own and maintain such circuit breemers with retirig as specified by the Company, in oreer to provide for the orderly voyeding and improving of the Company's transmission system as ad. d6aonel loads dictate, the Comoeny may require me custorner to design and construct the substetron so es to facilitsee converson to higher dehvery voltages designated by the Company. ($1 The customer e responsible for cienning and maintaining substet on savioment according to reasonocie stonderes commensurate with safe ooeration, and the Company may refuse to deliver service to the cus. tomer's facetities if thrs is not done. ISI The customer sheit provide, without charge to the Comoany, the necessary space, structure and founde. tions for the Company's metenng eouioment and instruments and shall permit the Company to have access to the premmes at ait times. (7) The Company snad have access to the premeses at asi times All ecuepment turnished by the Cornoeny thesi be end remain the orooerty of the Company. (8) The customer sheit provide all eovioment necessary to requiere his operations so thet the Cornoenv's onenery voltage sheH not be sub,ect to escessive veristion. 191 For the protection of the Company's facilities, the customer may be reouired to fumish,insteit, and rneintain a tood temiting device sooroved by end under tne soie control of tne Comoeny. This sheet food pursuant to tne Order in Case No 81420-E L . AIR of tne Puoi.c Utihties Commission of Ohio. cated June 9.1982. Continueo on Sneet No. ao issued- June 11.1982 isswed ov sonn P .wis.cason , cr a.,m.n wecri.e une11.Is5; Edison Pista. Toiedo ch.o
e THE TOLEDO EDISON COMPANY Toiede Oh6e P.U.C.O. No. 3 Tenth Revised Sheet No.40 LARGE POWER RATE "PV 44" (10) Where the customer deares lignung service incidenal to his power requiremens arch service may be pur-chased under the row, provided the customer furnishes the additionel transformers and ed other equis-ment nosassary. All asen incidenal ligiteng shed be enciered through the power meter. (1 11 The cussomer shed use entraordinary care in so designing his circuits that the loads on the indnridual passes shall be practaceny bedenced at en times. TERMS OF SERVICE AND CONTRACT: Service and contract under this schedule she64 he for a pened of four years with a selfwael prove.on for necceauwe genode of one year each unless wntsen notice of termination is givert ninety days before empiretion of the four year pened,or any one year renewas pened. The asesomer shed contract for capacity sowed to the estwnesed menemum demand of he loed. The Company vnil asasey cosecary in excess of that contreeted for when nach capacity is eveitable,but reserves the neht to roNas te needy such enditiones capacity when in the judynent of the Company to de so would isocardies the queNey or canonuity of servise to other cussomers. ( l This sheet filed oursuant to the Order in Case No. 81420 E L. AIR of one PutHec Utilities Commission of Ohio.cated June 9. I982. Issueo June I1.1982 issueo av Jonn P Wai amson. Che.* men Effective June 11.1982 Edison Piere. Toisco, on o
- THE TOLEDO EDISON COMPANY j
Toledo. Ohio P.U.C.O. No. g Thirteenth Revised Sheet No.41 I
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! INTERRUPTIBLE POWER R ATE '?V 48" APPLICASILITY: Aveslease so any induetnel customer located arf;ecent to the Company's tronemaneca lines and appev ing for permanent service, who shell contract for not less then four thousand (4D001 Kilovoitemperse, of Billing Oomend The Company well be the sole judge of the cepecify which may be meefe aveslebie to customers under this rete schedule, and service under this rose schedule will be provided only to those customers who will agree to the conditions of service specified herein, and only when, in the judgment of the Company, such servios will not jeopardias the ouelity or contmuity of service to other customers. MONTH LY NET R ATE (Three Ports): (1) Demand Charge: Per KVA of Monthly Billing Demand 38.70 (2) Energy Charge: First 300 KWH per KVA of Montfuy Silling Demand.per KWH 1.30W All Additional KWH per KWH 74E 133 Customer Charge The Monthly Cuesomer Charge Shell Be 31,500.00 MINIMUM: The not minimum charge per month shalt be the customer charge plus the appliceole demono c.arge applied to the monthly bdling demand, including opphcable ediustment charges or credits. TERMS OF PAYMENT: The not amount of the bdi is due within fourtown days as shown on the bill if not peed wethen that time, e late payment service charge of five percent (5%) well esso be due. Such late payment service charge wdl not be essessed pnor to one full day following the due date. ORDER OF BILLING: All charges and drecounts shall be belled in the order m which they are presented in mis tenff. ADJUSTMENT OP DEMAND CHARGE: If the Company is unable channg any month to mese sveilee6e to the Custorner cepecity acues to the Monthly Billing Demand for et least 550 hours, the demand charge soave will be reduced .75 cents /KVA of Monthey Billing Demand for each hour of such deficiency below $50 hours. ELECTRIC FUEL COMPONENT: The energy charge shall be ediusted to mcfude the current cost of fuel consumed to produce efectnc energy m comolience with Rule e901:111 of the Ohio Adminestretrve Cooe. as reflected m the Electne Fuee Component Rider on Sheet 43A of this tentf. EXCfSE TAX SURCHARGE ADJUSTMENT: Monthty charges under this schedule shall be ediusted in accordance with the surcharge for recovery of increened Ohio Gross Receipts Excise Tes as set forth m Rider No. 2 of this tariff. POWER FACTOR AOJUSTMENT: The ecove Rete es based on the montenance by the customer et e#1 times durmg the month of a power factor not less then the power factor et the time of maximum monthly demand. For any month wnen the everage legemg power factor is less then eighty frve percent (85%I the Comoeny shall make en additiones charge of one percent (1.0%) of the totes bdi for each five percent (5%) difference between the overage legging power factor and eignty-five percent t85%). The everage legging power f actor theil be determmed from the ailometthours and the leggmg reactive kdovott empero Aouse supphed to the customer durmg tne month. This sheet filed pursuant to the Order m Case No. 81420 EL-AIR of the Pubhc Utilsties Commission of Ohio, dated June 9.1982 and the Entry dated July 7,1982. Contmued on Sheet No. 42 luusd- July 14.1982 inuco ov acan d m n.4msen cr a .,m n E f f ective : July 14.1982 Eoaon Pem. To'eco. Ch.o
,- THE TOLEDO EDISON COMPANY Toledo. Ohio P.U.C.O. No. g Tenth Revised Sheet No.42 INTERRUPTISLE POWER RATE "PV.46
MONTHLY SILLING DEMAND: The cussomer's monthly demand sheel be the highest thirty 001 vninum integrated kilovostempore demand attamed dunne the month. Any tending power factor shell be considered as unity. The Monthly Billing Demand shall be the monety demand but not less then: tal Sisty-five percent (46%) of the highest monely domenti esponenced durms the most recent Osseber. November. December. .lenuary. February. March or Aorti: or (b) Seventy five percent (75%) of the highest monely demand esperienced dunne me most recent May, June. July August, or Sootomoer: or (c) Four thousand (4.0001 kilovoit-emoores SUSSTATION CHARGE: The Company is willing to fumish and instoel the saesotion eiectrical equiomont sufficient to suopay the customer's contreet cosecsty. The soHf sutsterion equioment shell be of the Company's senerd reting and speciriceoons to rneks one voltage treneformaion. The Company well own and meentein the sabetstion equipment for the cuemmer for a merithey charge computed at 1.50% of the Company's tomi investment in the instelleton. If the customer elects to have the Company fumish such fecalities, the customer shell provide the necessary site and fumish,insta!I and rnenmin the foundenons, structures and fence. The customer sheel reemeurse the Company for costs of irwedstion of etectnces equipment fumiehed by me Company. The Corneeny shell heue access to the promises et sol times. All sousement fumished by the Company shall be and romen the property of the Company. The monthly charges se provided for herem she:S commence with the como6etion of equipment incessation by the ( Comoeny. If the event that the ernount of the Commeny's investment in such substation electnces facilities is increased or decreened due to change in amount of capacity croinded or to other causes, the monthly charges shell be ediusted to reflect such change in the amount of the Cornanny's investment. If the custorner shell subesguently deare to purchese such subetstion e6ectncel souipment, the Company will seal the sousement et the onoreciated market veaue et such time. SPECIA L RULES: (1) Power wdl be susodied to a customer contracting for service under thes rete schedule dunng houri determined soiety by the Company. Supervisory contrasted occuit breekers or circuit switchers required for meerruption edl be provided by the customer and wdl be under the direct control of the Company's lood discotching personnes et en tunes. (2) Where m the Commeny's sudgment the conod of mterruption may be for more then one ween. the Comoeny wdl. upon request, seem to obtain from other sources temporary power supolies ecues to the amount of cepecify interrupad. If such sucoly is evealecie. the Company will advise customer of the cost and the terms ervi conditions under which it will be eveileese. If such en offer is accepteele. the Company wdt permit the Customar to resume use of power under those terms and conditions and at a rete reorecentmg the additional costs associated with cominmg such couuer. (3) The Company will endeavor to provide the fuit contract caoecity requirements of the customer for not less then 550 hours each month and not fees then 7500 hours durmg each casender year.The Company will siso endesvor to provide es much adverve notice es ocasible of the meerruptions of service to be made hereuncer. but reserves the right to interrupt service without notice wnenever emergencies or other coeroting conditions, in the judgment of the Company. require the meerruption of the customer's service. fel The customer. to the extent practicante, shall advise the Company of pionned curredmonts of his caoecity requirements. [ This sheet filed oursuant to the Order in Case No. 81420 EL-AIR of the Pubhc utihties Commission of Ohio, dated ( June 9,1982. Contmued on $heet No.43 issued: June 11.1992 assued by Jonn P. Wahamson Cheermen Etfactive: June it.1982 Edison Ptete. Toledo. Ohio
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THE TOLEDO EDISON COMPANY Toledo. Ohio P.U.C.C. No. 8 Eighth Revised Sheet No. 43 ('- INTERRUPTIBLE POWER RATE "PV 44" (5) The firm pouver requirements of the Custorner will be suopiied thru a seperste service and meter under the provisions of a rete schedule ecolicable to the service rendered. If the Company is required to provide firm service to the customer's entire load by order of a Govemment egency with proper authority to onsor such service, the service rendered under such an order will be billed to the Customer et the soproonete firm Wrvice fete. TERMS AND CONDITIONS: (1) Service under this rete is supplied in accordence with the Rules and Reguistions of the Company and le subsect to the junediction of theaublic Utilities Commesson of Ohio. (2) This schedule covers the supply of three phase. 60 Hertz, pnmery current from the Company's overhead transmission circuits dotivered at acoroximatoty sixty nine thoussed (89.0001 volts or higher with a ten percent (10%) esloviabie voitnes varianon. (3) The customer theit contract for cepecity equel to the estimeted memimum demand of his load.The Company will supply capacity in excess of that contracted for when such capacity is eveelable, but reserves the right to refuse to sucoly such additional capacity when in the judgment of the Company to do so would jeoperdias the ovelity or continuity of service to other customers. (4) The Company will construct the tronomesson line to the customer's property line and will furmen and instad the first seen of conductors on the customer's property to the customer's structure. In the event that more then one soon of tronomission circuit is required on the customer's property, the Customer will fumich,instell, even and meinWin the necemery structurse. Conductors and reisted trenstnissaan livie eouierrient The design and construction of aH such facilities shallbe subsect to the Company's enerovel. (5) The subetetion. including the site, structures, foundations. fence, electncas eausement and asi other necessary (' facilities sheH be fumished.insteiled, owned and meentsined by the customer. The design ered Corstruction of the subetetson and the retmg and specif.(ations of the electrical causoment including cartuit brechers or circuit switchers sheH be tutMect to soproval by the Company. The customer shell provide without charge to the Company,tfie necaneery noece. structure and foundations for the Company's metenne souipment and instruments and shed permit the Comoeny to have access to the premens et oil tunes. (6) The customer shen use outraordmery care m so designing his circuits that the iceds on the individual phemme shese be practiceity beienced et en times. (7) The customer sheH orovide an sousernent necessary to replete hes operations no that ene Company's tronomesion voitoso sheH not be subject to esconnive venerion. (8) For the protection of the Comoeny's facilities. the Customer may be roovered to fumish. meten end memtsin ) a food limiting device soproved by and under the sole control of the Company. TERM OF SERVICE AND CONTRACT: Servce and contract under this schedule then be for a pened of five veers with a self<enewel provision for succesive penods of one year each. Wntten notice of contract termmetion by either party must be previoed at seest one hundred eighty days pnor to the expiration of the five veer period or any one veer renewee penod. The customer may at his cotion termmate sonnce unoer this schedule at the end of any contract period upon mnety (90) days notice end ccntreet for firm service for his entire seed under it.e provisions of the acorepriate tenff for firm service. l l l This sheet filed pursuant to the Order in Case No. 81420-E L AIR of the Pubhc Utiisties Commission of Ohio, dated l June 9.1982. i l Issued: June 11.1982 issueo by John P Will.arnson. Chairman stfective June 11.1982 Edison Pissa. Toledo. Onio
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