Parker-Davis Project FES Contract Amendment January 16, 2004.
Transcript of Parker-Davis Project FES Contract Amendment January 16, 2004.
Parker-Davis ProjectFES Contract Amendment
January 16, 2004
Purpose & Expectations
Purpose: To discuss customer comments in response to the December 22, 2003 prototype contract revision.
Expectation: To finalize contract language for the Parker-Davis Project Firm Electric Service contract extension amendment.
Comments Received to Date
Colorado River Commission (CRC) Fredonia Mohave Electric Cooperative Salt River Project Town of Thatcher Arizona Electric Power Cooperative
Comments & Responses Check the Power Marketing
Website at www.wapa.gov/dsw/pwrmkt for: Customer comment letters Response to comments Prototype contract
For those who do not have internet access, Western will fax comments and responses upon request.
General Principles The FES Contract does not amend or modify the
Generation AOF Contract and visa versa Important to FES Contractors that the FES
Contract Extension Amendment not be construed as modifying the Generation AOF
Important to Western that the Generation AOF Contract not be construed as superseding or modifying the FES Contract
Western has agreed to the provisions of the Generation AOF Contract by becoming a party thereto
Western will not make repeated references to the Generation AOF Contract in the FES Contract
General Principles
As a Federal Power Marketing Administration, Western conducts business in accordance with Federal resource power marketing laws, rules, regulations and principles
It is not necessary to repeat this language in the FES Contract
Exhibits
Deleted the phrase “or Exhibit A-1, as the case may be”
Inserted a universal provision at section 15 to make clear that “On and after October 1, 2008, all
references to Exhibit A shall be deemed to refer to Exhibit A-1”
General Power Contract Provisions
Deleted the phrase “as they may apply” Begs the question and does not add
clarity Inserted language to make
facilities provisions inapplicable “Articles 20 through 30 shall not
apply…”
Replacement Advances Reconciliation Surcharge
The FES contract cites the Generation AOF Contract as the source for the Surcharge requirement
As signified by Western’s signature on the Generation AOF Contract, the surcharge will be calculated as set forth in the Generation AOF Contract.
In the FES Contract, the surcharge is implemented by Western only, not the new or existing FES Contractor
Thus the language “As determined by Western”
Transfer of Interest in Contract – Customer Concerns Language is too broad
“…if the Contractor’s status as a customer changes in some manner,…”
Term “Adjust” viewed as putting allocation at risk
Prefer CRSP Contract language “…the Contractor’s obligation to supply
electricity to preference entity loads changes as a result…”
Ensure ability to adapt to contractual changes in organization membership status
Transfer of Interest in Contract – Western Concerns
Preserve preference principles
Retain ability to make changes as reasonably necessary and appropriate
Transfer of Interest in Contract Deleted reference to “…status as a
customer…” Inserted “…obligation to supply
electricity to preference entity loads…” Inserted “reasonably” Replaced “Adjust” with “conform” Inserted reference to contractual
changes in membership based organizations
Transfer of Interest in Contract - Language Notwithstanding any other provision of the contract to
the contrary, Western’s Administrator reserves the right to conform Western’s firm electric service obligations under this contract as he or she deems reasonably appropriate if the Contractor’s obligation to supply electricity to preference entity loads changes in some manner as a result of the following, including but not limited to: (1) merger with another organization, (2) acquisition of or being acquired by another organization, (3) creating a new organizational entity from an existing one, (4) joining or withdrawing from, or contractually restructuring its membership in, a member-based power supply organization, or (5) if the Contractor is a member-based power supply entity (such as a generation and transmission cooperative), losing or altering its contractual relationship with one or more members from its membership organization.”
Contingent upon Authorization
Deleted
GPCP language referring to Congressional Appropriations is sufficient in the context of this electric service contract
Excess Energy
Comments agreed with deleting excess energy language from FES Contract
Western will continue to provide excess energy, as we do today, in accordance with existing contract provisions
Integrated Resource Exchange Program
No Change Will continue to operate In accordance with existing
contract provisions
Term of Contract; Effective Dates
Section 14.1 Section 6 of this Amendment shall
become effective October 1, 2004, except that subsection 6.2 shall operate as of September 1, 2004, for purposes of billing referenced therein.
Other Comments Concern over cost increases
Western is sensitive to cost increase concerns & welcomes customer input and suggestions
GPCP Revisions July 10, 1998 version will be attached
to the P-DP Contract Amendment Contract provisions control in the
event of conflict
Timeline Review
October 1, 2003 – Customer Meeting
November 4, 2003 – Customer Meeting
December 22, 2003 – 2nd Prototype January 16, 2004 – Customer
Meeting
Next Steps
Comments, if any, due to Western by close of business January 23, 2004
Western will send out individual contract offer on January 28, 2004
Contractors sign and return Contract Amendment by March 31, 2004
Comments & Responses Posted on the Power Marketing
Website at www.wapa.gov/dsw/pwrmkt for: Customer comment letters Responses to comments Prototype contract
For those who do not have internet access, Western will fax comments and responses upon request.