1986-1601523E 4 8 9
NO.
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH
THE CITIES OF GARLAND, BRYAN, GREENVILLE AND BRAZOS ELECTRIC
POWER COOPERATIVE, INC. RELATING TO THE SALE OF ELECTRICAL POWER
TO TEXAS NEW MEXICO POWER COMPANY; AND DECLARING AN EFFECTIVE
DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I.
That the City Council of the City of Denton, Texas, hereby
authorizes the Mayor to enter into an agreement between the
Cities of Garland, Bryan, Greenville and Brazos Electric Power
Cooperative, Inc. relating to the sale of electrical power to
Texas New Mexico Power Company under the terms and conditions
being contained in said agreement which is attached hereto and
made a part hereof.
SECTION II.
That this ordinance shall become effective immediately upon
its passage and approval.
PASSED AND APPROVED this the day of 1986.
l \.C ps>-7vY
RAY ST NS,/MAYOR
CITY OP DENTON, TEXAS
ATTEST:
( TE tiLLEN, CITY C ~R
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY:
CONTRACT BY AND AMONG
THE CITY OF BRYAN,
BRAZOS ELECTRIC POWER COOPERATIVE, INC.
AND THE CITIES OF GARLAND, GREENVILLE
AND DENTON, TEXAS
THIS AGREEMENT, made and entered into as of the day of
1986, by and among the City of Bryan and Brazos Electric
Power ooperative, Inc., a Texas Corporation, (hereinafter called
"Brazos") and the Cities of Garland, Greenville, and Denton, all
municipal corporations organized under the laws of the State of Texas.
WITNESSETH:
WHEREAS, Bryan has entered into a contract with Texas New Mexico
Power Company., a Texas Corporation, hereinafter TNP, providing for the
sale by Bryan to TNP of a specified quantity of electrical power and
energy, which contract is attached hereto, marked as Exhibit A, and
made a part of this agreement by reference, hereto as though reproduced
hereon verbatum and
WHEREAS, Bryan desires to enter into an agreement with the other -
four members of the Texas Municipal Power Pool to share the
responsibilities and revenues of the aforementioned contract with TNP,
and
WHEREAS, Bryan desires to have Brazos administer the
aforementioned contract with TNP and distribute income from such sales
of power and energy in accordance with that certain prior agreement
among Brazos and the cities of Bryan, Denton, Garland, and Greenville;
said agreement entered into January 1, 1985 for the express purpose of
administration of a power sale contract with West Texas Utilities.
- r,
NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements of the parties hereto as hereinafter set
forth, the parties do hereby contract and agree as follows:
ARTICLE I
Bryan desires to convey to Brazos, Denton, Garland, and Greenville
a portion of the revenues and Brazos, Denton, Garland, and Greenville
desire to accept the responsibilities of the aforementioned sale of
power and energy to TNP.
ARTICLE II
ADMINISTRATION OF TNP CONTRACT
In order to provide for an agreed administration of the contract
between Bryan and TNP, Bryan designates the agreement of January 1,
1985 by and among the members of TMPP as referred to hereinabove as the
controlling document for purposes of administration and revenue
distribution. The administrative and revenue distribution provisions
of that agreement are adopted herein by reference hereto as though
reproduced hereon fully.
ARTICLE III
TERM
This Agreement for administration and revenue shall remain in full
force and effect concurrently with and for so long a time as the
attached contract marked "Exhibit A" with TNP is effective.
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IN WITNESS WHEREOF, the parties hereto have executed this
Agreements. on the day and year above written.
ATT ST: s~ CITY OF DENTON
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CITY OF GARLAND
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BRAZOS TR C P WER COOPERATIVE INC.
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EXHIBIT "A"
AGREEMENT FOR SALE OF POWER AND ENERGY
This Agreement is entered into this, the 71 day of j,4' , 1986
by and between the City of Bryan, Texas (hereinafter Bryan) and Texas
New Mexico Power Company, a Texas Corporation (hereinafter TNP).
WITNESSETH:
Whereas, Bryan owns and operates a municipal electric system which has
generation in excess of that necessary to meet its load and reserve
requirements and other contractual requirements for the period of this
agreement and,
Whereas, TNP operates an electric system which uses as one source of
power and energy purchases from other utilities and,
Whereas, TNP desires to purchase from Bryan power and energy and,
Whereas, Bryan can and does agree to provide such power and energy.
Now, therefore in consideration of the premises and the mutual
covenants herein contained the parties hereto do hereby agree and bind
themselves as follows:
ARTICLE I
1.1 Bryan hereby agrees to provide and TNP agrees to accept a maximum
of sixty thousand (60,000) kilowatts of power and energy for the term
of this contract at one or both.of TNP's metering points with Houston
Lighting S Power in TNP's southeast division at a level of firmness
equal to Bryan's native load and the Texas Municipal Power Pool load.
Bryan agrees to provide energy up to the sixty (60) megawatt level
requested by TNP during the term of this contract. Requests for
changes in power and energy by TNP shall be made at least 24 hours in
advance, and minimum loads during any 24 hour period in which power is
requested will be 508 of the maximum load for that period. Bryan will
make all necessary arrangements for wheeling of power from its
generation source to TNP's.metering points and will pay all costs of
such wheeling.
1.2 This agreement shall become null and void if (a) Bryan determines
that there is insufficient transmission line capability in the ERCOT
facilities. to accomodate the energy transfers expected to occur under
the terms of this agreement and/or (b) Bryan is unable to negotiate
satisfactory arrangements for the transmissionf services by third
parties contemplated in Paragraph 1.1.
ARTICLE II
TERM
2.1 This agreement shall become effective at 12:01 AM, July 1, 1986
and terminate at 11:59 pm, December 31, 1986.
ARTICLE III
COMPENSATION FOR POWER AND ENERGY
3'.1 In consideration for Bryan providing this capacity, TNP agrees to
pay Forty Eight Dollars ($48.00) per Kilowatt for the amount of
Kilowatts specified in Article I.
i
3.2 In consideration for the energy delivered under the terms of this
contract, TNP will pay Bryan an energy charge of $.0225 per Kilowatt
hour for all energy delivered under this agreement.
3.3 It is the intent of the parties to this contract that a power sale
agreement for a long term commitment be entered into not later than
January 1, 1987. In the event such agreement has not been executed by
January 1, 1987, TNP will pay Bryan an additional $48.00 per Kilowatt
for all power delivered under Article I.
3.4 In the event that purchase of power under this agreement causes
TNP to pay for power not actually taken from its other power supplier
under the terms of TNP's contract with its other power supplier, Bryan
will forgive the capacity charge, exclusive of the amount paid to
others for wheeling, up to twenty-five percent (258) of the amount of
power contracted for in Article I.
ARTICLE IV
I
PAYMENT TERMS
4.1 Bryan will invoice TNP $8.00 per Kilowatt of capacity and for all
energy delivered by the 10th of the month following the month of. usage
under Article I of this contract with payment being due and payable by
the 25th of that month.
ARTICLE V
CONTINUITY OF SERVICE, FORCE MAJEURE
5.1 Each party will exercise reasonable diligence and care to avoid
interruptions of delivery of power and energy hereunder, but will not
be liable for any damage or loss that may be occasioned by any failure
or interruption caused by fires, floods, lightning, storms, or other
acts of God; or,by strikes, riots, civil disturbances, action of public
authority, litigations, ' breakdown, or other causes beyond its
reasonable control.
ARTICLE VI
REMEDIES FOR BREACH
6.1 In addition to and not excluding any remedy herein provided, it is
agreed that if either party fails to perform any of its obligations
hereunder, including the prompt payment of monthly bills or delivery of
electric power, the injured party may suspend payment of bills or
delivery of energy hereunder, and said party will not be liable in any
manner for loss-or damage arising from such nonpayment or suspension,
provided that the injured party shall specifically notify the other
party of such failure in writing at least ten (10) days prior to such
suspension or nonpayment. Should any power requirement of TNP under
this agreement not be met, then and in the event TNP is damaged
economically by same, Bryan shall pay to TNP $48 per kilowatt for any
power duplicated up to a maximum of the total power requested under
Article I above. No such suspension or nonpayment will interfere with
the enforcement by either party of any other legal right or remedy. No
delay by either party in enforcing any of its rights hereunder, and no
waiver of any right to enforce any breach hereof, will be deemed a
waiver of such rights nor will any waiver by either party of any delay
by the other party be deemed a waiver of any other or subsequent
default, all rights and options herein provided to the benefit of
either party being continuing to the end that failure to exercise any
such right or option shall not be construed as waiving the right or
option upon any subsequent delay or breach whether of like or different
character.
ARTICLE VII
Bryan reserves the right to assign portions of this contract responsi-
bility to other members of the Texas Municipal Power Pool, provided
however that such assignment shall be subject to the same terms and
conditions contained in this agreement unless modified by agreement in
writing by TNP and the assignee.
ARTICLE VIII
This contract and its terms shall be interpreted in accordance with
Texas law.
All notices and other communications required or permitted by this
agreement except as otherwise specified shall be sufficiently given by
certified mail, return receipt requested as follows:
To the City of Bryan:
City of Bryan
P.O. Box 1000
Bryan, Texas 77805
Attn: Mr. Ernest Clark, City Manager
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To TNP:
Texas New Mexico Power Company
4100 International Plaza, Tower II
Fort Worth, TX 76109
ATTENTION: Rickey J. Wright
Attn:
Signed by the parties hereto on the date and year first written above
by:
APP30 AS TO dY
I~r r ~
.ity A< ey, City of Bryan
Attested by:
ATTESTn
CITY 5ECRETARx
Attested by:
~//1,
City of Bryan, Texas
By: ✓ i ~~ft..
Title:
Texas New Mexico Power Company
By
Title: