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HomeMy WebLinkAboutPUBLIC SERVICE - CONTRACT - CONTRACT - ATO FACILITIES WITH RESERVED ELECTRIC CAPACITYDocument Number 185757 AGREEMENT ATO Facilities With Reserved Electrical Capacity THIS AGREEMENT, made and entered into this Ist day of April 2006, by and between PUBLIC SERVICE COMPANY OF COLORADO, a Colorado Corporation, hereinafter referred to as "Company", and the City of Fort Collins at Unit FCWTF, a Colorado Municipality, whose service address is 4316 Laporte Avenue, Fort Collins, Colorado 80522-0580, and mailing address is P.O. Box 580, Fort Collins, Colorado 80522-0580 hereinafter referred to as "Customer", WITNESSETH: WHEREAS, Company is presently furnishing electric energy and electric service to Customer under the terms, conditions, rules and regulations of Company's Electric tariff on file and in effect from time to time with The Public Utilities Commission of the State of Colorado, and WHEREAS, Customer has requested Company to provide excess electric facilities for the purpose of automatic load transfer to a second source of electric supply, in the event of loss of delivery of electric power and energy from Customer's principal source of electric supply. Such excess electric facilities, including any necessary reinforcement of Company's facilities, shall hereinafter be called "ATO Facilities", and WHEREAS, Customer desires to reserve for Customer's use, a certain portion of electrical capacity from the alternate source, and WHEREAS, the reserving by Company of said electrical capacity necessitates an investment of capital for the direct benefit of Customer, and WHEREAS, Customer is willing to compensate Company by contributing the capital cost for the ATO Facilities, and contributing Company's estimate of the cost to reserve the electrical capacity in the second source of electric supply desired by Customer, and Customer is also willing to pay a monthly surcharge to offset Company's ongoing ownership costs, including operating and maintenance costs of said ATO Facilities, and facilities necessary to reserve said electrical capacity, and WHEREAS, Company and Customer desire to enter into this Agreement as hereinafter set forth. NOW, THEREFORE, in consideration of the premises and of the mutual covenants and promises of the parties hereto, it is agreed as follows: 1. Purpose of this Agreement. This Agreement is supplemental to the standard contract for electric service between Company and Customer for initial service, and is for the express purpose of setting forth Company's and Customer's requirements and promises concerning only the ATO Facilities, the related delivery of electric energy and electric service through the second source of electric supply and the reserving of electrical capacity in the second source of electric supply for Customer. 2. ATO Facilities. The ATO Facilities are shown on Exhibit A attached hereto and made a part hereof. Customer hereby agrees that the ATO Facilities shown on Exhibit A are adequate for the satisfactory operation of Customer's equipment during outages on the principal source of electric supply to Customer. The ATO Facilities shown on Exhibit A provide automatic load transfer to an alternate source when the initial electric source voltage is lost for any reason. It is hereby recognized by Customer that the ATO Facilities will not guarantee non -interruptible service. Customer further recognizes that normal operation of ATO Facilities will cause momentary voltage variations of electric energy during load transfer. Customer agrees that Company shall not be liable for any losses sustained by Customer due to such variations or any malfunction of the ATO Facilities. Customer further recognizes that both sources of electric supply to Customer originate from the same substation transformer and that the loss of service from this transformer for any reason will result in a complete loss of electric supply to Customer. Customer agrees that Company shall not be liable for any losses sustained by Customer due to the loss of electric supply from said substation transformer. 3. Specifications. All electric energy and electric service to be delivered by Company to Customer by means of the ATO Facilities during outages on the principal source of electric supply shall be in the same form, (three-phase alternating current at a frequency of approximately 60 hertz and a nominal voltage of 13,200/7,620 volts as required by Customer from said principal source of electric supply. -2- 4. Facilities Provided by Company. Company will design, install, own, operate and maintain the ATO Facilities including all apparatus necessary to deliver and measure electric energy and electric service supplied through such ATO Facilities. Customer ownership begins at the load side of the primary meter. Company agrees to install the ATO Facilities with reasonable promptness, subject to the availability of labor and material and prior commitments to other customers. Such ATO Facilities are designed to accommodate a future demand not to exceed 1,200M Company agrees to reserve for Customer said future kW demand of electrical capacity in the alternate source of electric supply, subject to Section 10 hereinafter. Electrical capacity shall be reserved by Company assuming a power factor of not less than 90 percent lagging at Company's metering point. 5. Facilities Provided by Customer. As a benefit to Customer and Company, Customer will provide and install a dedicated telephone line to the ATO facilities for the purpose of remote monitoring of said ATO facilities. In addition to the phone line, Customer will also provide and install a 120 volt AC power line to the ATO facilities for the purpose of remote monitoring of said ATO facilities. The remote monitoring feature will provide twenty-four hour alarm indications to Company operations personnel. 6. Right to Locate Facilities. In order to allow the Company to perform its obligations hereunder, Customer hereby grants to Company permission to use premises of Customer at locations satisfactory to Company and Customer for the purpose of installing, maintaining, and operating the ATO Facilities and for related purposes, and agrees to confirm required rights of way by separate instrument without cost to Company if so requested by Company. 7. Maintenance and Operation of Facilities. Company will perform maintenance inspections on the ATO Facilities owned by the Company. All testing and maintenance inspections will be performed during Company's normal working hours. If Customer requests that special arrangements be made for testing and maintenance to be performed outside of Company's normal working hours, Customer will be required to pay the difference between regular and overtime pay. Company agrees to provide Customer access of test results. Any required replacement parts and related labor will be paid for -3- and furnished by the Company if such required replacement parts are necessary due to normal wear. Customer agrees to pay Company the costs incurred by Company for replacement parts and related labor necessitated by any incident resulting from Customer negligence. Any Company caused incident requiring replacement parts and related labor will be paid for and furnished by Company at no additional cost to Customer. Customer will not operate, adjust or otherwise trespass upon the ATO Facilities, but will notify Company of any needed maintenance or adjustments if and as soon as same is discovered by Customer. 8. Customer's Contribution. In consideration of the investment to be made for the ATO Facilities by Company for the direct benefit of Customer and the reserving of the electrical capacity in the second source of electric supply, Customer has paid Company prior to the execution of this Agreement a nonrefundable contribution in the amount of One Hundred Thirty Seven Thousand Eight Hundred Seventy Two dollars, ($137,872). 9. Customer's Monthly Surcharge. Effective with completion of the ATO Facilities and related equipment to provide duplicate service, and continuing thereafter, Customer shall pay Company a monthly surcharge to offset the ongoing ownership costs to Company of the ATO Facilities and the facilities necessary to reserve said electrical capacity in the second source of electric supply. Such surcharge shall be subject to change upon 30 days' notice to Customer by Company to reflect changes in maintenance cost or other ongoing ownership charges. The monthly surcharge applicable hereunder is One Thousand Two Hundred Sixty Four dollars, ($1,264). The Customer's Monthly Surcharge will be included on Customer's monthly statement for electric energy and electric service. 10. Additional ATO Facilities. If Customer's requirements increase beyond the reserved kW capacity amount stated in Section 4 above, necessitating additional reserved capacity, additional ATO Facilities or replacement of the ATO Facilities covered under this Agreement, and if Company accommodates Customer's request for additional capacity, Customer will be required to pay Company for the added investment in the ATO Facilities, for the cost of the additional reserved capacity, and a monthly surcharge to offset the ongoing ownership costs to Company of the total investment in the ATO -4- Facilities and the facilities necessary to reserve the total electrical capacity in the second source of electric supply under an amendment to this agreement to be executed by the parties. 11. Liability. Company shall not be liable for failure or fault in delivery or total or partial interruption of service through the ATO Facilities caused by accidents, labor troubles, the forces of nature, the authority and orders of government and other causes or contingencies of whatever nature beyond the reasonable control of Company, or which reasonably could not have been anticipated and avoided. To the extent permitted by law and Charter of the City of Fort Collins, Customer shall save and hold harmless Company, its officers, employees and agents from any and all claims for injury to person or persons or damage to property that is the direct result of negligent acts or omissions of Customer in the performance of this Agreement; provided, however, that nothing herein contained shall be construed as relieving or releasing Company from liability for injury or damage, resulting from its own willful or gross negligence or the willful or gross negligence of any of its officers, servants, agents or employees. 12. Term -Effective Date. This Agreement shall be in force and effect for up to five (5) successive one-year terms from the date hereof, and shall automatically renew for each such annual tern after the initial one-year term unless Customer notifies Company of non -renewal at least 30 days in advance of the term end, subject to the right of termination in Section 13. 13. Termination. Customer or Company may terminate this Agreement on 30 days' written notice to Company, provided, however, that such termination shall not relieve Customer of the obligation to pay Company any amounts owed to Company under the terns of this Agreement. Upon termination of this Agreement for any other reason, Company shall upon Customer's request remove the ATO Facilities and shall reasonably restore Customer's property from any damage resulting from said removal 14. Assignment -Consent. This Agreement shall not be assignable by either party without written consent of the other party, which consent shall not be unreasonably withheld or delayed. Company may, however, assign the Agreement in the event of merger. 15. Jurisdiction. This Agreement is subject to Company's Rules and -5- Regulations for Electric Service as on file and in effect from time to time with The Public Utilities Commission of the State of Colorado, to the extent Customer is permitted by law and the Charter of the City of Fort Collins to be so obligated. IN WITNESS WHEREOF, the parties hereto have subscribed their names the day and year first above written. City of Fort Collins, Colorado �j r By: iJ Ti e: irector of Purchasing and Risk Management '�'Em�;-)t76 ATTEST Title: APPROVED AS TO FORM: Assistant City Attorney l Public Service Company Of Colorado FOR By: l L-' l% President & CEO, Public -Service of Colorado -6- EXHIBIT A EXCESS EACILITES WITH RESERVE �� ELECTRICAL CAPACITY a m N N 0 FCWTF PM B L H PSCO Owned AT❑ — a L Alternate Feeder O La Porte Ave. H:\ACAD\ATD\FCWTF-ExhibitA.dwg Not to scale. ORDER NUMBERS APPROVALS MAP NO. SEC. 07 TWO. 07N RGE. 69W REVISED DATE 4/28/2005 CREGS DFIS COORD, ENGR. J.O. APPV'D FEEDER NUMBERS SHEET 1 OF 1 DESCRIPTION EXHIBIT A: FCWTF, 4316 Laporte Ave, Ft, Collins, Co, PSCO Owned AT❑ Customer's ownership begins on the load side of the primary meter, DUAL FEEDER COST CALCULATION SHEET Customer: Ft. Collins Water in Laporte Date: Service Address: 4316 Laporte Ave #2 Account Number: Section-Townsh ip-Ra nge-G rid: 7-07N-69w Preferred Sub: Laporte Bank: #1 Alternate Sub: Feeder # 1604 = Bank: Feeder # (MILES) Number of miles from excess facilities (M.S.R.) Monthly, Surcharge Rate : 910to substation, along alternate feeder = (C.P.M.) Cost per kW mile = $10/(kW mile) CAPACITY REQUIREMENTS: (E.R.C:) Existing Reserve Capacity (A.R.C.) New & Additional Reserve Capacity (T.R.C.) Total Res. Cap. (A.R.C. + E.R.C) INITIAL ONE-TIME CHARGE: Dual Service Facilities ATO/MTO Installed Cost Alternate Feeder Construction Cost One -Time Reserve Capacity Charge (O.R.C.C.) (O.R.C.C.) One-time Reserve Cap. Charge = (Miles)(C.P.M.)(A.R.C.) (O.R.C.C. charge based on (A.R.C.) only, not on (E.R.C.) O.R.C.C. = 6.8 Miles @ $10/(kW Mile) X TOTAL (ATO inst. cost + Alt. feeder cost + O.R.C.C.) MONTHLY SURCHARGE: (T.R.C.C.) Total Reserve Capacity Charge = (Miles)(C.P.M.)(T.R.C.) T.R.C.C. = 6.8 Miles @ $10/(kW Mile) X Mo. Charge = (0.11)(ATO installed cost +Alt. feeder cost + T.R.C.C.) 12 1200.0 = Apr 01, 2005 6.00 MI 7.00 MI 6.75 MI 0.00 kW 1200.00 kW 1200.00 kW $43,464 rG t r2 $13,408 $81,000 = $137,872 1200.0 = $81,000 Comments: Mo. Charge Note that both feeders are connected to the same transformer bank. Completed By: Keith Therence. Org. Date 9-18-86 8.1.8 Rev. Date 8-2-95 (C.W.M.)