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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 2 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