HomeMy Public PortalAbout1RESOLUTION NO. 1~ - 2002
A resolution of the Richmond Power and Light Board of Directors recommending the
approval of the First Amendatory Agreement to the Power Sales Contract between the
City of Richmond and the Indiana Municipal Power Agency.
WHEREAS, on April 1, 1982, the City of Richmond, through its municipal
electric utility Richmond Power and Light (RP&L), and the Indiana Municipal Power
Agency (Agency) entered into a Power Sales Contract by which the Agency agreed to
sell and deliver to RP&L, and RP&L agreed to purchase and receive from the Agency all
electric energy and power required by RP&L for the operation of its municipal electric
system; and
WHEREAS, Section 3(a) of the Power Sales Contract provides that after
December 31, 2002, the maximum amount of power required to be sold and delivered by
the Agency and purchased and received by RP&L, shall not exceed the Contract Rate of
Delivery, as determined by the Agency; and
WHEREAS, RP&L desires to change definition of and date for determining the
Contract Rate of Delivery in Section 3(a) of the Power Sales Contract and the Agency is
willing to make such changes; and
WHEREAS, the Agency and RP&L mutually agree that RP&L will remain a full
requirements member of the Agency through December 31, 2008 and thereafter, unless
RP&L elects by December 31, 2006 the Contract Rate of Delivery to be defined as the
peak demand of RP&L for power and energy during the 60 billing periods preceding
December 31, 2008, as determined by the Agency; and
WHEREAS, the Agency is willing to plan for and invest in Power Supply
Resources necessary to sell and deliver all electric and energy required for the operation
of the Richmond Power and Light electric system, including that necessary to serve
RP&L load growth; and
WHEREAS, the Agency and RP&L desire to amend the Power Sales Contract to
reflect their intentions.
NOW, THEREFORE the Richmond Power and Light Board of Directors hereby
recommends that the Common Council of the City of Richmond establish and pass an
ordinance approving the First Amendatory Agreement, (a copy of which is attached as
Attachment A) to the Power Sales Contract between the City of Richmond and the
Indiana Municipal Power Ageofy'
Passed and adopted this _\t~ ~_day of June, 2002.
, Chairman
ATTEST:
, Clerk
ATTACHMENT 'A'
FIRST AMENDATORY AGREEMENT TO
POWER SALES CONTRACT BETWEEN
INDIANA MUNICIPAL POWER AGENCY
AND
THE CITY OF RICHMOND
This Agreement, made as of the day of ,2002, by and between
INDIANA MUNICIPAL POWER AGE~CY~a body corporate and politic and political
subdivision of the State of Indiana, organized and existing under the laws of the State of Indiana
(hereinafter the "Agency"), and THE CITY OF RICHMOND (hereinafter the "Member").
WHEREAS, the Agency and the Member entered into a Power Sales Contract dated April
1, 1982 by which the Agency agreed to sell and deliver to the Member, and the Member agreed
to purchase and receive from the Agency, all electric power and energy which the Meraber
required for the operation of its municipal electric system; provided, however, Section 3 (a) of the
Power Sales Contract provides in pertinent part that after December 31, 2002, the maximum
amount of power required to be sold and delivered by the Agency and purchased and received by
the Member, shall not exceed the Contract Rate of Delivery, which shall be the peak demand of
the Member for power and energy under this Contract during the 60 billing periods preceding
December 31, 2002, as determined by the Agency, adjusted up or down by not more than 10% so
as to provide optimal utilization of the Agency's Power Supply Resources, such adjuslment to be
made by the Agency upon the advice of the consulting engineer to the Agency; and
WHEREAS, the Member desires to change the definition of and date for determining the
Contract Rate of Delivery in Section 3(a) of the Power Sales Contract and the Agency is willing
to make such changes; and
WHEREAS, the Agency has periodically advised the Member of its estimated Contract
Rate of Delivery and the Member desires to continue purchasing and receiving from the Agency,
all electric power and energy required for the operation of its municipal electric systern, including
that necessary to serve load growth through December 31, 2008 and thereafter, unless the
Member elects by December 31, 2006 the Contract Rate of Delivery as provided herein; and
WHEREAS, the Agency is willing to plan for and invest in Power Supply Resources
necessary to sell and deliver all electric power and energy required for the operation of the
Member's municipal electric system, including that necessary to serve the Member's load
growth; and
WHEREAS, the Agency and the Member desire to amend the Power Sales Contract to
reflect their intentions.
o
NOW, THEREFORE, in consideration of the premises and the covenants, terrns and
conditions hereinafter provided, the parties hereto mutually agree as follows:
The reference to "Power Supply Resources" in Section 1, "Definitions," of the Power
Sales Contract is deleted in its entirety and the following is substituted:
Power Supply Resources shall mean those resources for the production of electric power
and energy included in the System to the extent the same are employed by the Agency to
supply electric power and energy sold under the Power Sales Contracts.
Subsection (a) of Section 3, "Sale and Purchase of Electricity," of the Power Sales
Contract is deleted in its entirety and the following is substituted:
SECTION 3. Sale and Purchase of Electricity
(a) The Agency hereby agrees to sell and deliver to the Member, and the
Member hereby agrees to purchase and receive from the Agency, commencing on
the date of the First Amendatory Agreement and extending through the term
hereof, all electric power and energy which the Member shall require for the
operation of its municipal electric system, provided, however, the Member mav
give written notice to the Agency no later than December 31, 2006 that after
December 31, 2008, the maximum amount of power required to be sold and
delivered by the Agency and purchased and received by the Member hereunder
shall not exceed the "Contract Rate ofDelive "as her '
"Contract Rate of D ' " ry elan_after defined. The
ehvery shall be the peak demand o/the Member for power
and energy under this Contract during the 60 billing periods preceding December
31, 2008, as determined by the Agency.
In the event that, pursuant to the Public Utility Regulatory Policies Act of
1978 or other provisions of law, electric power is required to be purchased from a
small power production facility, a cogeneration facility or other facility, the
Member and the Agency shall use their best efforts to arrange for such purchases
to be made by the Agency. If such arrangements can not be made, then the
Member shall make the required purchases and sell the power purchased to the
Agency at a price equal to the price paid by the Member. The Member appoints
the Agency to act as its agent in all dealings with the owner of any such facility
from which power is to be purchased and in connection with all other matters
relating to such purchases.
Subsection (b) of Section 6, "Covenants of the Agency," of the Power Sales Contract is
deleted in its entirety and the following is substituted:
(b) The Agency shall use its best efforts while following Prudent Utility Practice
to provide a constant and uninterrupted supply of electric power and energy under this
Contract. In the event that the Agency is not able to supply all of the electric power and
energy requirements of all of the Participating Members that it is required to supply
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hereunder, it shall use its best efforts to allocate its electric power and energy available
from its Power Supply Resources during any billing period among the Member and the
other Participating Members as follows: Such allocation shall be made pro rata in
accordance with their respective electric power and energy requirements supplied
hereunder during the corresponding billing period of the preceding calendar year. During
any .period the Agency is unable to supply all of the Member's electric power and energy
reqmrements that it is required to supply hereunder, the Agency shall not in an:,, case be
liable to the Member for damages resulting from such interruption of service and the
Member shall be permitted to acquire from other sources such amount of electric power
and energy which is not supplied by the Agency; provided, however, that at such time as
the Agency is thereafter again able to supply all of the Member's electric power and
energy requirements that it is required to supply hereunder, the Member shall be required
to take and pay for such electric power and energy in accordance with the provisions
hereof.
IN WITNESS WHEREOF, Indiana Municipal Power Agency and the City of Richmond
have caused this First Amendatory Agreement to be executed by their respective duly author/zed
officers as of the day, month and year first above written.
By:
INDIANA MUNICIPAL POWER AGENCY
ATTEST:
Title:
Secretary
(Seal)
ATTEST:
Norma Schroeder, City Clerk
(Seal)
By:
Title:
THE CITY OF RICHMOND
Shelley D. Miller