1990-019NO . d `OI
AN ORDINANCE AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE
CITY OF DENTON AND BRAZOS ELECTRIC POWER COOPERATIVE, INC. TO
PROVIDE FOR THE INTERCHANGE OF ELECTRICITY PRODUCED AT THE
LEWISVILLE HYDROELECTRIC PROJECT; PROVIDING FOR THE EXPENDITURE OF
FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Denton and Brazos Electric Power
Cooperative, Inc. desire to enter into an interchange agreement
providing for the construction of the interconnection and parallel
operation of the two systems at Brazos Electric Substation; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the City Council hereby approves and
authorizes the Mayor and City Secretary to execute and attest
respectively, the agreement between the City of Denton and Brazos
Electric Power Cooperative, Inc., under the terms and conditions
contained in the agreement attached hereto.
SECTION II. That the City Council authorizes the expenditure
of funds in the manner and amount as specified in the agreement.
SECTION III. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this day of , 19~.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: AAA MY A
APPR D A. O LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
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BY:
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RAY ST S, mAfkOR
17-
POWER INTERCHANGE AGREEMENT BETWEEN
THE CITY OF DENTON AND
BRAZOS ELECTRIC POWER COOPERATIVE, INC.
This Agreement is between the CITY OF DENTON ("City"), and
BRAZOS ELECTRIC POWER COOPERATIVE, INC. ("Brazos Electric"):
WITNESSETH:
WHEREAS, City is constructing, and thereafter will own and
maintain a hydroelectric project ("Hydro Plant") at the Lake
Lewisville Dam in Lewisville, Texas, to provide electrical power
and energy for City's utility system; and
WHEREAS, Brazos Electric has electrical facilities to transport
the power and energy generated from the Hydro Plant to City's
utility system; and
WHEREAS, City and Brazos Electric wish to enter into an
agreement to provide for the direct interchange of power and energy
by interconnected electrical systems;
NOW, THEREFORE, in consideration of the mutual covenants and
conditions of each, the parties agree as follows:
ARTICLE I.
INTERCONNECTION FACILITIES
A. Interconnection Point. The interconnection point between
the utility systems of City and Brazos Electric shall be at Point
of Intersection A at Brazos Electric's Lewisville Substation, as
shown in EXHIBIT A, attached hereto and incorporated herein by
reference.
B. Facilities Provided by City. In order to provide for the
interchange of power, City shall provide, construct, install, and
thereafter own and maintain, at its own expense, the following
equipment at the Hydro Plant:
1. A dual-ported Remote Terminal Unit (RTU), one port for
Brazos Electric's use and directly accessible by its
CDC EMS System in Waco, Texas.
2. Communication paths between the Hydro Plant and the
microwave station at City's Spencer Steam Plant for
both ports on the RTU.
3. A solid-state underfrequency relay that will open and
lockout the generator breaker before the first level of
load shedding operates, in accordance with Electric
Reliability Council of Texas (ERGOT) guidelines.
4. Revenue interchange metering on the 25 kv distribution
line breaker. The metering shall consist of a JEM1 In
and Out KWH meter with compensation to the Brazos
Electric's 25 kv interchange point A, as shown in
Exhibit A. The compensated KW and KWH In and out pulse
from the JEM1 shall be fed into the RTU.
5. Sychro-verifying relays on any breaker at the Hydro
Plant that will be used to parallel the two parties'
systems.
C. Facilities Provided by Brazos Electric. In order to
provide for the interchange of power, Brazos Electric shall
provide, construct, install, and thereafter own and maintain, at
city's expense, the following equipment at its Lewisville
Substation:
1. The necessary channel equipment between City's Spencer
Plant Microwave and Waco for Brazos Electric's port on
the RTU at the Hydro Plant.
2. An underfrequency relay to operate the 25 kv breaker,
the relay to be comparable to that located at the Hydro
Plant.
3. A 25 kv breaker, with associated buswork, switches, and
structures.
4. Two sets of directional overcurrent relays.
5. Metering accuracy 25 kv current transformers.
6. Synchro-verifying relays.
7. Revenue metering between Brazos Electric's and Denton
County Electric Cooperative's interconnection at the
Lewisville Substation. This will consist of two sets
of IN and Out KWH and QH meters. One set shall be on
the low side of the main transformer and the other set
shall be in the 25 kv bay. Pulses from all four KWH
meters shall be fed into a four channel load profile
recorder. The IN and out channels shall be totalized
and then the difference shall be computed to give the
net to Denton County Electric Cooperative. The same
shall be done on a separate four channel recorder for
the QH meters.
Page 2
8. Three 138 kv instrument potential transformers and the
necessary ground detection relaying system.
9. If determined necessary by the parties, communication
facilities necessary for supervisory control at the
Lewisville Substation.
C. Schedule of Construction. It is understood by the parties
that City's Hydro Plant is expected to be ready for commercial
operation by November 30, 1990. Brazos shall make all reasonable
efforts to complete installation of the equipment specified by this
Agreement so as to be operational by September 1, 1990.
D. Payment of Cost. The estimated cost to Brazos to provide
and install the equipment and facilities provided for in this
Agreement is estimated to be approximately One Hundred Eight
Thousand and Five Hundred Dollars ($108,500.00), as shown in
EXHIBIT B, attached hereto and incorporated herein by reference.
Brazos shall keep and maintain records of all payments made for
materials to be furnished and labor performed under this Agreement,
which records shall be furnished or made available to City for
inspection upon completion of the work. Upon completion of the
installation of the equipment and facilities, Brazos shall bill
City and City shall pay the actual cost of the materials provided
and the engineering, labor, and overhead costs associated with the
work; provided, however, in no case shall Brazos bill City or shall
City be liable to Brazos for more than One Hundred Twenty-nine
Thousand, Three Hundred Fifty Dollars and No Cents ($129,350.00),
for the initial equipment supplied and work performed, regardless
of the actual cost.
ARTICLE II
OPERATIONS, METERING, AND MAINTENANCE
A. General Operations. For all energy delivered by City to
Brazos at the Lewisville Substation from the Hydro Plant, Brazos
will deliver an equivalent amount of measured energy to City at its
Denton North Interchange. Under normal operating conditions the
point of interchange shall remain closed and the normal voltage
level shall be 25 kv. No changes will be made in the normal
operations of the point of interchange without the mutual agreement
of both parties. City will remotely control the hydro generator
excitation system. Any changes in excitation will normally be done
manually on the generator in blocks. The Lewisville Substation
regulator will be on automatic control under normal operating
Page 3
conditions unless the parties agree otherwise. The 25 kv bay at
the Lewisville Substation will not be connected to the transfer bus
nor will it have a bypass switch. The tie breaker at the
Lewisville Substation and all breakers at the Hydro Plant will not
have automatic reclosures unless first agreed to in writing by both
parties.
B. Continuity of Service. The Parties will operate their
respective facilities as nearly as may be practicable in a manner
to provide continuous, synchronous, and parallel operation. Each
party shall promptly repair and thereafter maintain all equipment
and facilities installed on its property under this Agreement.
Maintenance which will cause a deviation from normal power and
energy flow shall be scheduled at a mutually agreeable time.
Neither party assumes any responsibility for the equipment of the
other party, except that all costs of repair or replacement of the
equipment furnished by and maintained by Brazos under this
Agreement shall be paid by City.
C. Metering. The revenue metering equipment will be at Brazos
Electric's Lewisville Substation 25 kv bus and at City's Hydro
Plant distribution line breaker with compensation to point-of-
interchange at the Lewisville Substation. All metering equipment
installed under this Agreement shall be maintained by their
respective owners. Each party shall make periodic tests and
inspections of its meters, at its own expense, at least once every
year. Each party will make additional tests of its meters at the
request of the other party and at the expense of the requesting
party. Each party shall advise the other party when the tests will
be made so that the other may be present. The meter testing values
should not exhibit error greater than the values specified in
Appendix J of the ERCOT Guide For Uniform Practices on Metering.
Any metering equipment found to be defective or inaccurate shall be
promptly repaired, adjusted or replaced, as necessary, by the
owner.
D. Force Majeure. Each party shall exercise due diligence and
reasonable care and foresight to maintain continuity of service in
the delivery and receipt of energy, but neither party shall be
considered to be in default or be liable to the other for any
penalty or for any damage for failing to receive or deliver energy
by reason of uncontrollable forces. The term uncontrollable forces
shall mean earthquake, storm, lightning, flood, fire, accident,
failure of facilities, war, restraint by court or public authority
or other similar causes beyond the control of the party affected,
which causes the party could not have avoided by exercise of due
diligence and reasonable care.
Page 4
ARTICLE III.
EFFECTIVE DATE AND TERM
his Agreement shall become effective on the day of
1990, and shall continue in force for a period
of fifteen ( ) years and shall continue thereafter unless and
until terrain ed by mutual agreement or by written notice given by
either party to the other at least two (2) years in advance of the
proposed date of termination, provided that any obligations
incurred which may extend beyond the termination date will be
honored.
ARTICLE IV.
MISCELLANEOUS PROVISIONS
A. Liability. Each party will indemnify and hold harmless the
other from and against any and all loss, cost, damage or expense,
including attorney fees, for, or by reason of, any claim for injury
to its own employees at any location and to persons or property
occasioned by the electric power or equipment owned or operated by
it, however caused.
B. Other Contracts. Each of the parties now have in force
contracts to purchase, transmit and interchange power and energy
with each other and other parties. This Agreement shall in no way
invalidate or modify any provision of those contracts.
C. Regulatory Authority. The terms and conditions of this
Agreement are subject to any applicable federal or state laws and
the applicable rules and regulations of any agency or authority
having jurisdiction of the subject matter of this Agreement.
Should any provision of this Agreement be in violation of any such
law, rule, or regulation, it shall be considered modified to the
extent necessary to comply with the law, rule, or regulation.
D. Assignment. Neither party shall assign this Agreement to
any other party without the prior written consent of the other
party.
E. Default. In the event that either party fails to comply
with any terms or conditions of this Agreement, the other party
shall give the party failing to comply notice of said breach and
request the defaulting party to cure or correct the same. Should
the party given notice fail to correct said breach within ninety
(90) days following receipt of said notice, the other party shall
Page 5
have available all remedies of law, other than termination, to
enforce compliance with this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed in duplicate by their duly authorized
officers, and their respective corporate seals to be affix ereto
and tested y their respective secretaries, on this Lay of
, 1990.
BRAZOS ELECTRIC COOPERATIVE, INC.
BY:Ri hard McCaskill, ecutive
Vice-President and General
Manager yU
ATTEST:
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CITY OF DENTON
BY: did4l 7
Lloyd-VI. Harrell, City M nager
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY.
APP ED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY: i_
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EXHIBIT=
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CITY of DENTON / 215 E. McKinney / Denton, Texas 76201
March 15, 1990
Mr. Bill Townsend
Manager, Corporate Planning
Brazos Electric Power Cooperative, Inc.
2404 LaSalle Avenue
P. O. Box 2585
Waco, TX 76702-2585
Dear Bill:
On February 6, 1990, the City of Denton (COD) has executed the
Interchange Agreement for the Lewisville Hydroelectric Project.
Under Section "D" of ARTICLE I (payment of cost) of this
agreement, the estimated cost to Brazos to provide and install
the equipment shall not exceed $129,350. The general practice of
our Legal Department on contract procedure is to set a maximum
value for the expenditure of funds which is, in this case, 19%
higher than the estimated cost of $108,500. You have expressed a
concern about recovering the actual costs in case you exceed the
contract amount.
If, prior to project completion, Brazos determines that
additional funds will be needed from COD to meet its
Brazos shall notify COD, and the COD, within 45 days
of notice, shall make the necessary funds available
regular procedure.
Very truly you s,
v
Robert E. Nelson
Executive Director of Utilities
REN:gb
03150044
costs,
from receipt
through the
cc: Ernie B. Tullos, Director of Electric Utilities
Joe Cherri, P.E., Electrical Engineer
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MEMORANDUM
BRAZOS ELECTRIC POWER COOPERATIVE, INC.
TO Bill Townsend FROM Robert Kelly
DATE March 30, 1990
SUBJECT Lewisville Dam
In reference to Bob Nelson's letter regarding the ceiling of
$129,350 for reimbursement funds to Brazos Electric on the
Lewisville Dam project, Brazos Electric will monitor the actual
accrued cost on a regular basis and if it appears the ceiling will
be exceeded, we will halt our activities until approval for a
revised limit is authorized by the City of Denton.
Robert Kelly
jr
cc: Billy Dyess