Loading...
HomeMy WebLinkAbout25728 A7_USA U4Ni A'M1'ATiR AGENDA ADJOURNED REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA LIGHT &WATER WEDNESDAY, MAY 21, 2003 729 N. AZUSA AVENUE 8:30 P.M. AZUSA, CA 91702 8:30 p.m. - Convene to Adjourned Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Roll Call 1. PUBLIC PARTICIPATION - Please note that public comments are welcomed by recognition of the Chairperson. II. AGENDA ITEM A. Fiscal Year 2003 - 2004 Budgets and 5-Year Financial Projections II-A. Budget Workshop 111. ADIOURNMENT A. Adjourn. 7n compliance with the Americans with Disabilities Act, ifyou need special assistance to participate In a city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) worldng days prior to the meeting or time when special services are needed will assist staff In assuring that reasonable arrangements can be made to provide access to the meeting. 001 My V-PlAt AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL THE REGULARLY SCHEDULED UTILITY BOARD/CITY COUNCIL MEETING OF TUESDAY, MAY 27, 2003, (MONDAY, MAY 26'h MEMORIAL DAY (OBSERVED)), HAS BEEN RESCHEDULED TO WEDNESDAY, MAY 21, 2003, AT 6:30 P.M. AT THE AZUSA LIGHT AND WATER DEPARTMENT CONFERENCE ROOM. AZUSA LIGHT &WATER WEDNESDAY, MAY 2l, 2003 729 N. AZUSA AVENUE 6:30 PM AZUSA, CA 91702 AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DICK STANFORD DAVE HARDISON VICE CHAIRPERSON BOARD MEMBER CRISTINA C. MADRID IOSEPH R. ROCHA BOARD MEMBER BOARD MEMBER 6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call I. PUBLIC PARTICIPATION 4 (PersonlGroup shall be allowed to speak without Interruption up to Ave (S) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker's questions or comments, shall be handled after the speaker has completed his/her comments. Public Participation will be limited to sixty(60)minutes thne.) The Consent Calendar adopting the printed recommended action w111 be enacted with one vote. if Staff or CoundImembers wish to address any item on the Consent Calendar Individually, It wlll be considered under SPECIAL CALL ITEMS. 001 0 I1. CONSENT CALENDAR A. Minutes. Recommendation: Approve minutes of regular meeting of April 28, 2003, as written. II-A. UB Minutes 4-28-03 B. Selection of the Underwriter for Upcoming Bond Financing. Recommendation: Waive formal bidding process and approve UBS Paine Webber or its successor as the underwriter. It II-B. Bond Underwriter C. Electric and Water Utility Service Construction Standards &Specifications. Recommendation: Adopt utility service construction standards &specifications for both electric and water services to be used in constructing customer utility services. II-C. utility Standards D. Award of bid to Engineered Plumbing for Construction of Water Main, Project W-t85. Recommendation: Award bid to Engineered Plumbing in amount of $86,614 for construction of water main, Project W-185, Big Dalton Wash Crossing. II-D.W-185.DOC III. SCHEDULED ITEMS . A. Contract with PPM Energy. Inc. and Renewable Portfolio Standard. Recommendation: Authorize Mayor to execute the agreement with PPM Energy, Inc. once the final agreement is prepared for purchase of three (3) megawatts of wind powered electrical energy and adopt the Renewable Portfolio Standard for SB 1078 requirements. III-A. Renewable Energy Purchase 2 002 B. Pro-Forma Netting Agreement with PacifiCorp. Recommendation: Approve the Pro-Forma Netting Agreement between the City and PacifiCorp and authorize Mayor to execute the agreement. III-B. Netting Agreement IV. STAFF REPORTS/COMMUNICATIONS A. Power Resources Division Monthly Report IV-A. Power Resources Moly Rpt B. Report on Water Issues C. Bond Financing Status Report V. DIRECTORS' COMMENTS A. 4th of July Parade: Friday, July, 4, 2003, from 10 a.m. at the Senior Center. Application forms are available at City Clerk and Chamber of Commerce offices. VI. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - FJCISTING LITIGATION Government Code Section 54956.9(a) Southern California Edison Co. v. City of Azusa et al. Case Number BC 281408 VII. ADIOURNMENT A. Adjourn to Wednesday, May 21, 2003, at 8:30 p.m. at the Light and Water Conference Room to conduct a Council workshop. `7n compliance w/th the Americans with Disabilities Act, If you need special assistance to pardcipate In a city meeting,please contact the City Clerk at 626-811-5229. Nodflcadon three (3) working days prior to the meeting or time when special services are needed will assist staff In assuring that reasonable arrangements can be made to provide access to the meeting" 3 003 (P U .. . C"9UFOR��P CITY OF AZUSA MINUTES OF THE ADJOURNED WORKSHOP MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, MAY 21, 2003 - 7:30 P.M. The Utility Board Members of the City of Azusa met in regular session, at the above date and time in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: HARDISON,STANFORD,ROCHA,CHAGNON, MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: Also Present City Manager Cole, Director of Utilities Hsu, Assistant to the Director of Utilities Kalscheuer, Administrative Technician Yang, Assistant Director of Water Operations Anderson, Assistant Director of Electrical Operations Ramirez,Assistant Director of Resource Management Tang, City Clerk Mendoza. Public Participation Pub Part None. None Agenda Item-Fiscal Year 2003-2004 Budgets and 5-Year Financial Projections. Utilities Director FY 03/04 Hsu introduced the Work Plan for FY 2003-2004, and provided a brief summary of each item Budget & listed as follows: Fin Projection I. Electric Substation 7. Customer Information System 2. Revenue Bond Issuance 8. Water Filtration Plant 3. Electric Yard Building 9. Underground Electric 4. System Efficiency Improvement 10. Water Mainline Replacements 5. Improve Credit Ratings 11. Well No. 10 Perchlorate Trmt 6. Work Management System 12. Reservoir Rehabilitation tie summarized Resources, Revenues, Uses, Expenditures,and addressed all divisions of the Light Presentation and Water Department,which includes budgets and work plans for FY 03-04,and 5-year financial Of Budgets projection for electric and water utilities, and answered questions posed by Councilmembers. 8.Work Plans FY 03-04 The Light & Water Financial Projections for FY 03-08 included the following: Light Fund 5-year Projections: Electric financial projections, Rate Implications,and Electric Rate Comparison. Water Projections Fund Projections: Water financial projections, Rate Implications,Water Rate Comparison. Policy Implications of Bond Financing on Retail Rate Setting were also discussed. Director of Utilities indicated that rate adjustments for Electric and possibly Water would be proposed during a Public Hearing at regular City Council meeting in June. Director of Utilities Hsu further indicated that he would work with City Manager Cole,Chairperson Transfers 8. Chagnon, Councilmember Standford, and Director of Finance Kenoyer on the utility fund Transfers Allocation and budget cost allocation policy. Continued consideration of this policy will be presented at the Policy June 2003 Utility Board Meeting. Items discussed are attached to the May 21, 2003, Adjourned Regular Meeting of Utility Board Doc on File Agenda. It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 9:22 P.M. SECRETARY NEXT RESOLUTION NO. 03-C41. 05/21/03 PAGE TWO From: Steven Yang To: Toscano, Candy Date: 5/27/03 2:13PM Subject: Notes for May 21, 2003 Utility Board Meeting & Utility Board Workshop Dear Candy, r Below is my notes for May 21, 200Q3/Utility Board Meeting & Utility Board Workshop for your reference. Steven :) S 1 Utility Board Meetinql. All consent items &scheduled items were approved. Item III- ontract with PPM Energy, Inc. and Renewable Portfolio Standard- Councilmember Har ison questioned if the wind generation facility at Solano County is expandable in the future. Assistant Director of Resource ManagemenLTaogresponded that he will investigate.- Mayor Madrid suggested having a tour of the facilitL3. Item IV-A. Power Resources Division Monthly Report- Assistant Director of Resource Manageme ang reported that the FERC settlement of City's Transmission Revenue Req . ent- s been reached by the parties per today's settlement conference for$1.89 million. 4. Item IV- Report on Water Issues- Four cities' letter to San Gabriel Valley Municipal Wa Dist I� Director of Utilities Hsu will keep councilmembers informed of the letter's status- Mayor Madrid suggested councilmembers to attend the District's meeting. - City Manager Cole indicated we should get an agenda of our own to define what we want. Chairperson Chagnon responded andasked to continue having this item on the next Utility Board Meeting for further discussion. . Item IV-C Bond Financing Status Report- Preparation of the presentation for the Financial Communi will be finished by the end of June 2003 and presented in mid July 2003.- Counc member Standford emphasized the importance of presenting the success we have in the past. 6. �Iter� V— erector's Comments- Holiday Events Consolidation- Consolidation plan is under preparation and City Manager Cole will present staffs recommendation to the councilmembers at a later time. Utility Board Workshop 1. Item II-A. Fiscal Year 2003 -2004 Budgets and 5-Year Financial Projections- Fiscal Year 2003 -2004 Budgets- Chairperson Chagnon needed clarification for 2002-03 Estimated Actual of$1,356,000 Transfers from Fund Balance of the Total Revenue under Resources on page 8. Director of Utilities Hsu responded that he will check with Director of Finance Kenoyer. - Chairperson Chagnon needed clarification for 2003-04 Department Request of$17,970 Money& Property Use of the Revenue under Resources on page 8. Chairperson Chagnon indicated that the amount should be greater.- Director of Utilities Hsu indicated that under 2003-04 Department Request, $610,000 should be added for the Charges for Services of Revenue under Resources on page 14.- Director of Utilities Hsu asked Assistant to the Director of Utilities Kalscheuer to check the school waste disposal status. - 5-Year Financial Projections- Mayor Madrid made a comment that she felt alright about the 10% rate adjustment on electric with no energy surcharge scenario after July 1 but no the 5% biennial rate adjustment scenario for water services.- Director of Utilities Hsu will work with City Manager Cole, Chairperson Chagnon, Councilmember Standford, and Director of Finance Kenoyer on the utility fund transfer out and budget cost allocation policy. The recommended policy will be presented in June 2003 Utility Board Meeting. Steven Yang Azusa Light&Water Tel: (626) 812-5171 �,OF <r ` G � � U c�iiroa�`P CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL i MONDAY, APRIL 28, 2003 - 6:30 P.M. N The Utility Board Members of the City of Azusa met in regular session,at the above date and time in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: HARDISON, STANFORD,ROCHA, CHAGNON, MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, City Manager Cole, Assistant City Manager Person, Director of Utilities Hsu, Assistant to the Director of Utilities Kalscheuer,Administrative Technician Yang,Assistant Director of Water Operations Anderson, Assistant Director of Electrical Operations Ramirez, Assistant Director of Resource Management Tang, Electric Engineer Langit, Information Systems Staff Graf- Gaynor and Morningstar, Consultant Suzanne Avila, Deputy City Clerk Toscano, City Clerk Mendoza. Public Participation Pub Part None. None The CONSENT CALENDAR consisting of Items 11-A and II-F, were approved by motion of Con Cal Councilmember Stanford, seconded by Chairperson Hardison,and unanimously carried with the Approved exception of item 11-F, which was considered under the Special Call portion of the Agenda. A. The minutes of the regular meeting of March Z4, 2003, were approved as written. Min appvd B. Authorization was given to staff, on behalf of the Azusa Light and Water, to release the joint Info System Azusa/Colton Customer Information System Request for Proposal/Qualifications (CIS RFP/Q) CIS RFP/Q document on or by May 30, 2003 and solicit proposals from qualified information system vendors. 004 C. Specifications for trailer mounted diesel generator were adopted and authorization was given Diesel to advertise for bids. Generator D. Authorization was given to waive formal Request for Proposal process and approve Fulbright & Consulting Services Contradt with Fulbright &Jaworski as bond and disclosure counsel for Jaworski upcoming revenue bond issuance and 1993 Series Water Revenue bond refunding. Bond Cncl E. Approval was given to add $10,000 to the contract amount of Wren & Associates for Wren & inspection services on project W-183, Northern Transmission Line. Assoc. F. SPECIAL CALL ITEM. Spec Call SPECIAL CALL ITEMS Special Call Items Councilmember Rocha addressed item regarding the Waterline Rehabilitation Construction Doty Bros. questioning who the other parties were that will be reimbursing the project. Director of Utilities Wtrin Cnst. Hsu responded stating that the other party is Miller Brewing Company. It was then moved by Councilmember Rocha, seconded by Councilmember Stanford and unanimously carried to approve the contract for the construction of 20-inch Waterline Rehabilitation Construction which was awarded to Doty Bros. Construction. Scheduled Items Sched Items San Gabriel Interpretative Center and U.S. Forest Service Entrance Center Elevations. Interpretative Center Ms. Claire Robinson, Sara Easely and other representatives of NorthEast Trees addressed Presentation Councilmembers detailing the background of their organization as well as some of their design And accomplishments. They then addressed the San Gabriel Interpretive Center and U.S. Forest Discussion Service Entrance Center detailing their plans, i.e. plant palette, rock walls, building design, parking issues, for the area. Lengthy discussion was held between Council, staff,and representatives of NorthEast Trees regarding plants, maintenance,signage,entryways,exits,cost-budget, long range plans, building design, etc. They then answered questions posed by Councilmembers. Moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously carried Motion to to move forward with the final design and bring back specifications and include a timeline for the Proceed w/ project. Project Assistant City Manager Person presented and detailed the issue of the North End monument sign North End and a proposed flagpole near the sign. Lengthy discussion was held between Councilmembers Monument and staff regarding the panels on the monuments, size, design,"structure, and signage. It was And flag pole consensus of Council that "Gateway to the Angeles Forest", not be included on the monument, but to place the Canyon City on both sides; further, that staff come back with variations of the monument sign, focus on softening the siding, place"Canyon City"on both sides,and have yucca and canyons panels. Additional discussion was held regarding the location of the flag pole; funds were donated by local veterans'groups and they asked that it be placed somewhere in the vicinity of the monument. It was consensus of Councilmembers that the flag pole issue be discussed with veterans' groups and be placed somewhere closer to Sierra Madre. RW Beck's Final Report and Presentation on Telecommunications Feasibility Study was brought RW Beck's forward for handling at this time. Final Rpt Telecomm. Feas. Study 04/28/03 PAGE TWO 005 Ms. Warner of RW Beck addressed the issue presenting ;a- detailed report on the Ms. Warner Telecommunications Feasibility Study which covered the following topics: Study Purpose, RW Beck ' Methodology, Government and Institutional Fiber Network, Internal and External Interest in Online Report City Services,Why Municipalities Provide Communications Services, Current Community Use of Summary Telecommunication Services, Price—The Primary Telecommunications and Broadband Issue in Of Findings Azusa, Buying Intentions, Wholesale vs. Retail, Key Factors to Network Profitability,.Revenue &Alternatives Opportunity,Financial Results,Summary of Findings, and Alternatives. The Summary of Findings are as follows: • There is moderate demand for telecommunications and broadband services with greatest Findings interest in cable television. • The City has the constitutional and statutory authority to provide these services largely free of regulatory oversight. • The deployment of a wholesale network is financially viable if a robust set of service providers can be recruited. This is highly unlikely in the current telecommunications environment. • The deployment of a retail fiber network is not financially prudent unless there are overriding community requirements. • There is substantial interest in the delivery of selected City services via the internet that can be accomplished with the constituents' current Internet access. Deployment of a fiber network for delivery of broadband and telecommunications services is not recommended at this time. The Alternative presented are as follows: Alternatives There are less costly alternatives that might be investigated to enhance the City's economic development and quality of life: • Deployment of a wireless "WIFI" high-speed Internet network (wholesale or retail) • Limited high-speed data network to serve larger businesses • Collaboration with other municipalities to create regional wholesale network Wiring of Monrovia Nursery Housing Development to provide high-speed Internet as a starter project She then answered questions posed by Councilmembers. Pursue It was consensus of Councilmembers to pursue the cost expected for the wireless aspect of Wireless telecommunications and the services that may be involved. Accept itr Moved by Councilmember Stanford, seconded by Councilmember Hardison and unanimously Commitment carried to accept Athens Services' letter and commitment in response to the audit conducted by Athens Svs MSW Consultants on behalf of the City. Hsu &Ferre Director of Utilities Hsu and City Attorney Ferre explained that the proposed agreement for Engineering and Design of the new Distribution Substation with Southern California Edison Comments Company is a limited agreement and that the parties still remain in dispute on the contractual terms and conditions of the interconnection service,which if not resolved within a 90-day period, Edison shall file all remaining contractual issues at FERC for resolutions. Moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously carried Engr &DsgnAgmt SCE to approve the Engineering and Design Agreement with SCE for the new distribution substation in New Sub- principle and authorize the Mayor to execute the Agreement upon the preparation of execution Station copies. 04/28/03 PAGE THREE 006 Staff Reports/Communications Staff Rpts Customer Service Training and Measure X Follows-Ups. Director of Utilities Hsu addressed the Update on issue providing an update stating that the staff report contains the recommendations of MEASURE Customer X along with recommendations from employees. He then answered questions posed by Service Councilmembers regarding specific areas of customer service. Mayor Madrid requested that Training seating be provided in the Light and Water building lobby for customers who have to wait. Assistant Director of Electrical Operations Ramirez address Council presenting and detailing the D. Ramirez Azusa Light &Water's Electric Division Reliability Report for Years 2001 &2002. He noted that Update the City had purchased a reliability software program through American Public Power Association Reliability created for them under the Deeds program which was intended to be used by small utilities. Report They took the City of Azusa's electrical data for 2001 &2002 and created the reliability report. He detailed the contents of the report which consisted of the following Reliability Index Formula: System Average Interruption Frequency Index (SAIFI), System Average Interruption Duration Index (SAID[), customer Average Interruption Duration Index (CAIDI) and Average Service Availability Index (ASAI). He explained Azusa's data in detail and answered questions posed by Councilmembers. Director of Utilities Hsu provided an update on the Yard Waste Barrel Program noting that Update estimated recovery of the cost of the barrels is five years and savings would be realized from Yard Waste disposing greater amounts of separated green waste versus paying to have green waste Barrel Pgrm processed as mixed waste through MRF. Director of Utilities Hsu presented the update on the FY 2002-2003 Work Plan for Azusa Light and Work Plan Water noting the new format of the document and that it is our intention to eventually make the Update information available on the City's Intranet. Pwr Res Rpt The Power Resources Division Monthly Report was received and filed. Proposed Director of Utilities Hsu reported on proposed legislation SB 888,which is proposing to eliminate SB 888 deregulation, repeal AB 1890. He stated that SCPPA, CMUA, and Northern California Power Authority are reviewing the bill at this time to see if there are any amendments to be proposed. Dir Com Director's Comments Reschedule Director of Utilities Hsu requested that the May Utility Board Meeting be moved to another date May Mtg in May due to the regular meeting falling on Memorial Day. He stated that he needed to make a 5/21/03 presentation on the Budget as well as a five year financial projection and implementation of debt service they will be incurring by issuing bonds. It was consensus of Council that the date be moved to the 21" of Mayor the June 3rtl. (May 21"was selected at a later time) Discussion Discussion was held regarding not having a meeting in the month of August. It was suggested August that the Utility Board meeting in August be cancelled as well as the last Council meeting. Further, Meetings if Utility Board business arose it could be held on the second Monday In August. SCPPA Discussion was also held regarding upcoming SCPPA and APPA seminar dates. The SCPPA &APPA seminar will be held from May 29'—May 31". The APPA seminar will be held in Nashville from Mtgs June 15"'—June 18th. 007 04/28/03 PAGE FOUR Closed Sess CLOSED SESSION It was consensus of Council to recess to Closed Session to discuss the following: Conf Legal CONFERENCE WITH LEGAL COUNSEL Counsel Existing Litigation Government Code Section 54956.9(a) City v. Simich City of Azusa v. Simich, Case No.: Los Angeles Superior Court No. KC041085 Res-Care, Inc. CONFERENCE WITH LEGAL COUNSEL V. City of Existing Litigation Government Code Section 54956.9(x) Azusa Res-Care, Inc., v. City of Azusa, Case No.: Los Angeles Superior Court No. KC040062 J Pub Emplmt 0 PUBLIC EMPLOYEE APPOINTMENT Finance Dir Government Code Section 54957 Title: Finance Director Recess i The City Council recessed at 8:59 p.m. Reconvene The City Council reconvened at 9:25 p.m. No Rpts There was no reportable action taken in Closed Session. Adjourn It was consensus of Councilmembers to adjourn. d TIME OF ADJOURNMENT: 9:26 P.M. 4f t SECRETARY i; h i NEXT RESOLUTION NO. 03-C34. j kI F �I F� 04/28/03 PAGE FIVE 008 ALU5.1 INFORMATION FOR WORKSHOP TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MAY 21, 2003 SUBJECT: FISCAL YEAR 2003-2004 BUDGETS AND 5-YEAR FINANCIAL PROJECTIONS BACKGROUND Attached herewith for your reference in preparation for workshop next Utility Board meeting are power point slides for (1) budgets and work plans for FY 03-04, (2) 5-year financial projection for electric utility, and (3) 5-year financial projection for water utility. Operating budgets for all divisions within Azusa Light &Water for next fiscal year have no significant changes from prior years, with the exceptions of (1) anticipated debt service in electric fund as a result of bonded indebtedness to finance electric substation, and added maintenance costs for the same, estimated at $1.3 million, (2) $25,000 budgeted in Water Fund for MAP training for City's executive management. Projections for the following fours years in electric utility fund indicate immediate but minor rate adjustments In order to maintain positive cash flow and sufficient debt service coverage. The projections are premised on the following assumptions: relatively stable wholesale power costs, maintaining historical performance level by San Juan #3 Generating Plant, an average of 1.5% sales growth annually, and 3% escalations in operation and maintenance costs. Electric utility is anticipating higher than normal historical maintenance costs going forward. The bulk of the system was upgrade about a quarter century ago when the system was upgraded to a higher distribution voltage class. Many of the system components are reaching their respective service life expectances. Anticipated load growth, albeit small increments, requires improvements and upgrades to infrastructure. Planned substation will provide additional capacity to meet load growth, improve system reliability and power quality. Projections for water utility fund indicate a better trend. On-going operating and maintenance costs remain relatively stable. Only item of significance Is the proposed water treatment plant to be built in fiscal year 2004-2005 which is anticipated to be financed through debt Issuance. 002 1 t OWMMOM Page 2: Fiscal Year 2003-2004 Budgets an 5-Y r FlAncta tions Cash flow will remain positive assuming small rate increases will be allowed to recover investments in capital improvement projects from time to time. Due to aggressive capital improvement programs planned for the ensuing years no significant increase to reserve is anticipated. In summary, 1 view both utilities' operating outlooks are cautiously positive provided prudent cash management and timely rate adjustments can be carried out. The physical systems will continue to deliver cost effective and reliable electric and water services to our customers, and they will continue to enjoy very competitively priced electricity and water in spite of the rate adjustments as proposed in staff's financial projections. Prepared by: J. Hsu Attachments 1. Budget and Work Plan Items Listing for FY 03-04 In FY 2003-04 Work Plan.PPr 3H Utilities BudgetAs 2. 5-Year Financial Projections—Electric and Water 5-Year Projections--Light&V 003 AZ SA LIGHT & WATER Azusa Light & Water Budget & Work Plan FY 2003 - 2004 Azusa Utility Board Adjourned Meeting May 21 , 2003 0 0 Work Plan for FY 2003 - 2004 1 . Electric Substation 2. Revenue, Bond Issuance 3 . Electric Yard Building 4. System Efficiency Improvement 5 . Improve Credit Ratings 6. Work Management System 7. Customer Information System (CIS) 8. Water Filtration Plant 9. Underground Electric Lines 10. Water Mainline Replacements 11 . Well No. 10 Perchlorate Treatment 12. Reservoir Rehabilitation azusA (� LIGHT & WATER i City of Azusa General,Elec,Water,Cons Svcs, Fund: Public Benefit&Grant 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Actual Request RESOURCES: Revenue: Taxes/Non Property $ 192,226 $ 421,339 $ 444,000 $ 474,000 Money&Property Use $ 3,270,297 S 2,723,530 $ 1,413,000 $ 136,083 Intergovernmental $ 101,232 $ 446,995 $ 322,265 $ 224,512 Cost Reimbursements $ 3,086,290 $ 3,098,531 $ 310,000 $ 293,000 Charges for Services $ 100,556,864 $ 63,358,382 $ 51,203,783 $ 43,742,210 Miscellaneous S 1,068,923 $ 1,879,047 $ 0 $ 0 Total Revenue 108,275,832 71,927,824 53,693,048 44,869,805 Transfers from Other Funds $ 0 $ 5,000,000 $ 0 $ 0 Transfers from Fund Balance $ 183,470 $ 14,917,308 $ 4,406,198 $ 4,583,861 TOTAL RESOURCES $ 108,459,302 $ 91,845,132 $ 58,099,246 $ 49,453,666 USES: Expenditures: Salaries&Benefits $ 5,535,601 $ 5,487,474 $ 6,471,365 $ 7,049,736 Materials&Services $ 76,124,525 $ 64,071,870 $ 41,836,641 $ 38,173,862 Capital Outlay $ 328,268 $ 483,108 $ 742,100 $ 688,400 Allocations $ 3,198,030 $ 3,914,889 $ 4,580,000 $ 2,929,579 Total Expenditures 85,186,424 73,957,341 53,630,106 48,841,577 Transfers to Other Funds $ 3,156,015 $ 8,983,947 $ 3,963,500 $ 0 Transfers to Fund Balance $ 20,116,863 $ 8,903,844 $ 505,640 $ 612,089 TOTAL USES $ 108,459,302 $ 91,845,132 $ 58,099,246 $ 49,453,666 1. 006 City of Azusa Fund: Grants& Seizures 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Solid Waste Mgmt Actual Request RESOURCES: Revenue: Taxes/Non Property Money&Property Use 705 335 0 200 Intergovernmental 101,232 199,997 207,265 224,512 Cost Reimbursements 0 0 0 0 Charges for Services 0 0 186,000 0 Miscellaneous 0 0 0 0 Total Revenue 101,937 200,332 393,265 224,712 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 0 0 0 TOTAL RESOURCES $ 101,937 $200,332 $ 393,265 $ 224,712 USES: Expenditures: Salaries&Benefits $ 0 $ 46,247 $ 56,100 $ 55,746 Materials&Services 11,515 32,927 273,004 118,178 Capital Outlay 0 0 0 0 Allocations 0 0 0 0 Total Expenditures 11,515 79,174 329,104 173,924 Transfers to Other Funds 0 0 0 0 Transfers to Fund Balance 90,422 121,158 64,161 50,788 TOTAL USES $ 101,937 $ 200,31LL$_ 393,265 $ 224,712 007 i i City of Azusa Fund: Grants& Seizures 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Electric Actual Request RESOURCES: Revenue: Taxes/Non Property Money&Property Use 0 149,006 0 0 Intergovernmental 0 246,998 0 0 'Cost Reimbursements 0 0 0 0 Charges for Services 0 0 0 0 Miscellaneous 0 0 0 0 Total Revenue 0 396,004 0 0 Transfers from Other Funds 0 5,000,000 0 0 Transfers from Fund Balance 0 0 1,356,000 0 TOTAL RESOURCES $ 0 $ 5,396,004 $ 1,356,000 $ 0 SES: Expenditures: Salaries&Benefits $ 0 $ 0 $ 0 $ 0 Materials&Services 0 161,968 0 0 Capital Outlay 0 0 0 0 Allocations 0 0 0 0 Total Expenditures 0 161,968 0 0 Transfers to Other Funds 0 1,189,777 1,356,000 0 Transfers to Fund Balance 0 4,044,259 0 0 TOTAL USES $ 0 $ 5,396,004 $ 1,356,000 $ 0 008 City of Azusa Fund: Consumer Service 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Customer Care&Solutions Actual Request RESOURCES: Revenue: Taxes/Non Property $ 0 $ 0 $ 0 $ 0 Money&Property Use 112,980 1,129,885 113,000 117,913 Intergovernmental 0 0 0 0 Cost Reimbursements 2,774,074 2,777,833 0 0 Charges for Services 0 1,100,090 3,954,683 2,929,579 Miscellaneous 3,287 9,429 0 0 Total Revenue 2,890,341 5,017,237 4,067,683 3,047,492 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 0 139,071 0 TOTAL RESOURCES $ 2,890,341 $5,017,237 $ 4,206,754 $ 3,047,492 USES: Expenditures: Salaries&Benefits $ 1,886,724 $ 1,811,271 $ 1,942,371 $ 2,105,592 Materials&Services 471,163 550,967 870,383 896,900 Capital Outlay 0 10,649 23,500 45,000 Allocations 252,296 1,127,056 1,000,000 0 } Total Expenditures 2,610,183 3,499,943 3,836,254 3,047,492 Transfers to Other Funds 0 1,018,419 370,500 0 Transfers to Fund Balance 280,158 498,875 0 0 TOTAL USES $ 2,890,341 $5,017,237 $ 4,206,754 $ 3,047,492 i i 009 i i c j 1 City of Azusa Fund: Consumer Svcs 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Information & Actual Request Communication Svcs RESOURCES: Revenue: Taxes/Non Property $ 0 $ 0 $ 0 $ 0 Money&Property Use 0 0 0 0 Intergovernmental 0 0 0 0 Cost Reimbursements 0 0 0 0 Charges for Services 0 0 0 0 Miscellaneous 0 0 0 0 Total Revenue 0 0 0 0 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance $ 183,470 $ 274,849 $ 374,560 $ 0 TOTAL RESOURCES $ 183,470 $ 274,849 $ 374,560 $ 0 USES: Expenditures: Salaries&Benefits $ 44,128 $ 130,204 $ 155,960 $ 0 Materials& Services 55,787 110,491 177,600 0 Capital Outlay 83,555 34,154 41,000 0 Allocations 0 0 0 .0 Total Expenditures 183,470 274,849 374,560 0 Transfers to Other Funds 0 0 0 0 Transfers to Fund Balance 0 0 0 0 TOTAL USES $ 183,470 $ 274,849 $ 374,560 $ 0 11 01.0 City of Azusa Fund: Water 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: City Water Actual Request RESOURCES: Revenue: Taxes/Non Property S 0 S 0 S 0 $ 0 Money&Property Use 591,976 371,268 500,000 17,970 Intergovernmental 0 0 115,000 0 Cost Reimbursements 95,130 136,795 130,000 90,000 Charges for Services 13,313,985 13,664,865 14,063,000 13,518,423 Miscellaneous 321,859 1,235,208 0 0 Total Revenue 14,322,950 15,408,136 14,808,000 13,626,393 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 0 1,062,621 2,095,742 TOTAL RESOURCES $ 14,322,950 $ 15,408,136 $ 15,870,621 $ 15,722,135 USES: Expenditures: Salaries&Benefits S 1,651,930 $ 1,788,299 $ 1,937,471 $ 2,099,759 Materials&Services 7,244,321 7,648,636 10,513,950 11,629,150 Capital Outlay 24,387 (77,527) 292,200 89,000 Allocations 1,884,286 1,806,536 2,327,000 1,904,226 Total Expenditures 10,804,924 11,165,944 15,070,621 15,722,135 Transfers to Other Funds 513,646 399,501 800,000 0 Transfers to Fund Balance - 3,004,380 3,842,691 0 0 TOTAL USES $ 14,322,950 $ 15,408,136 1 $ 15,870,621 $ 15,722,135 City of Azusa Fund: Electric 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Electric Actual Request RESOURCES: Revenue: Taxes/Non Property $ 0 $ 0 $ 0 $ 0 Money&Property Use 2,564,636 1,073,036 800,000 0 Intergovernmental 0 0 0 0 Cost Reimbursements 54,194 53,295 0 0 Charges for Services 85,056,522 45,869,624 30,224,000 24,456,800 Miscellaneous 743,777 629,660 0 0 Total Revenue 88,419,129 47,625,615 31,024,000 24,456,800 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 14,623,173 867,402 1,785,569 TOTAL RESOURCES $88,419,129 $ 62,248,788 $ 31,891,402 $ 26,242,369 USES: Expenditures: Salaries&Benefits $ 1,870,223 $ 1,574,812 $ 2,185,218 $ 2,426,982 Materials&Services 66,396,676 52,817,597 26,647,784 22,382,634 Capital Outlay 220,326 515,832 385,400 407,400 Allocations 1,061,448 981,297 1,253,000 1,025,353 Total Expenditures 69,548,673 55,889,538 30,471,402 26,242,369 Transfers to Other Funds 2,625,369 6,359,250 1,420,000 0 Transfers to Fund Balance 16,245,087 0 0 0 TOTAL USES $88,419,129 $ 62,248,788 1 $ 31,891,402 $ 26,242,369 012 City of Azusa Fund: Consumer Svcs 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Service Bureau Actual Request RESOURCES: Revenue: Taxes/Non Property $ 0 $ 0 $ 0 $ 0 Money&Property Use 0 0 0 0 Intergovernmental 0 0 0 0 Cost Reimbursements 152,740 130,608 180,000 0 Charges for Services 0 0 0 0 Miscellaneous 0 0 0 0 Total Revenue 152,740 130,608 180,000 0 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 19,286 0 0 TOTAL RESOURCES $ 152,740 $ 149,894 $ 180,000 $ 0 USES: Expenditures: Salaries&Benefits $ 861 $ 100,978 $ 92,701 $ 0 Materials&Services 23,950 31,916 51,500 0 Capital Outlay 0 0 0 0 Allocations 0 0 0 0 Total Expenditures 24,811 132,894 144,201 0 Transfers to Other Funds 17,000 17,000 17,000 0 Transfers to Fund Balance 110,929 0 18,799 0 TOTAL USES $ 152,740 1 $ 149,894 1 $ 180,000 $ 011 013 i City of Azusa Fund: Public Benefit 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Public Benefit Program Actual Request RESOURCES: Revenue: Taxes/Non Property $ 0 $ 0 $ 0 $ 0 Money&Property Use 0 0 0 0 Intergovernmental 0 0 0 0 Cost Reimbursements 0 0 0 0 Charges for Services 0 595,840 630,000 0 Miscellaneous 0 4,750 0 0 Total Revenue 0 600,590 630,000 0 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 0 606,544 702,550 TOTAL RESOURCES $ 0 $ 600,590 $ 1,236,544 $ 702,550 USES: Expenditures: Salaries&Benefits $ 0 $ 35,663 $ 101,544 $ 92,550 Materials&Services 0 462,982 1,135,000 610,000 Capital Outlay 0 0 0 0 Allocations 0 0 0 0 Total Expenditures 0 498,645 1,236,544 702,550 Transfers to Other Funds 0 0 0 0 Transfers to Fund Balance 0 101,945 0 0 TOTAL USES $ 0 $ 600,590 $ 1,236,544 $ 702,550 014 City of Azusa Fund: General 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: Solid Waste Mgmt Actual Request RESOURCES: Revenue: Taxes/Non Property $ 192,226 $ 421,339 $ 444,000 $ 474,000 Money&Property Use 0 0 0 0 Intergovernmental 0 0 0 0 Cost Reimbursements 10,152 0 0 0 Charges for Services 2,186,357 2,127,963 2,146,100 2,271,100 Miscellaneous 0 0 0 0 Total Revenue 2,388,735 2,549,302 2,590,100 2,745,100 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 0 0 0 TOTAL RESOURCES $ 2,388,735 $ 2,549,302 $ 2,590,100 $ 2,745,100 USES: Expenditures: Salaries&Benefits $ 81,735 $ 0 $ 0 $ 0 Materials&Services 1,921,113 2,254,386 2,167,420 2,276,900 Capital Outlay 0 0 0 0 Allocations 0 0 0 0 Total Expenditures 2,002,848 2,254,386 2,167,420 2,276,900 Transfers to Other Funds 0 0 0 0 Transfers to Fund Balance 385,887 294,916 422,680 468,200 TOTAL USES $ 2,388,735 $ 2,549,302 $ 2,590,100 $ 2,745,100 015 City of Azusa Fund: Internal Services 2000-2001 2001-2002 1002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: LW Information Systems Actual Request RESOURCES: Revenue: Taxes/Non Property $ 0 $ 0 $ 0 $ 0 Money&Property Use 0 0 0 0 Intergovernmental 0 0 0 0 Cost Reimbursements 0 0 0 0 Charges for Services 0 0 0 462,255 Miscellaneous 0 0 0 0 Total Revenue 0 0 0 462,255 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 0 0 0 TOTAL RESOURCES $ 0 $ 0 $ 0 $ 462,255 USES: Expenditures: Salaries&Benefits $ 0 $ 188,155 Materials&Services 0 189,600 Capital Outlay 0 84,500 Allocations 0 0 Total Expenditures 0 0 0 462,255 Transfers to Other Funds 0 0 0 0 Transfers to Fund Balance 0 0 0 0 TOTAL USES $ 0 $ 0 $ 0 $ 462,255 016 City of Azusa Fund: Internal Services 2000-2001 2001-2002 2002-2003 2003-2004 Dept: Utilities Actual Actual Estimated Department Div: LW Service Bureau Actual Request RESOURCES: Revenue: Taxes/Non Property $ 0 $ 0 $ 0 $ 0 Money&Property Use 0 0 0 0 Intergovemmental 0 0 0 0 Cost Reimbursements 0 0 0 203,000 Charges for Services 0 0 0 104,053 Miscellaneous 0 0 0 0 Total Revenue 0 0 0 307,053 Transfers from Other Funds 0 0 0 0 Transfers from Fund Balance 0 0 0 0 TOTAL RESOURCES $ 0 $ 0 $ 0 $ 307,053 USES: Expenditures: Salaries&Benefits $ 0 $ 0 $ 0 80,952 Materials&Services 0 0 0 70,500 Capital Outlay 0 0 0 62,500 Allocations 0 0 0 0 Total Expenditures 0 0 0 213,952 Transfers to Other Funds 0 0 0 0 Transfers to Fund Balance 0 0 0 93,101 TOTAL USES Is 0 $ 0 $ 01 $ 307,053 017 Azusa Utility Board Meeting Light & Water Financial Projections FY 03-08 May 21, 2003 a 00 Overview u. Light Fund Projections Electric financial projections Rate Implications Electric Rate Comparison Water Fund Projections Water financial projections Rate Implications Water Rate Comparison Policy Implications of Bond Financing on Retail Rate Setting Next Steps 0 2 r c� 4 Light Fund Actual Costs and Revenues HISTORICAL FINANCIAL DATA _. (.. _.. _... __. COST COMPONENT FY 96-97 ( FY 097-98 FY98 99 FY 99-00 FY 00-01 FY 01-02 NET.POWER RESOURCE COSTS ..__. $14,785,837 ( . $13 061,124 $9,984,491 $10 672 609 ($2,953,773} $19,779 126 DISTRIBUTION&CUSTOMER SERVICE,. $2,924,284 $4,959J38 $5,012,214 .. $3.618,595 a _$5,713 358 $4,787,644 DEPRECIATION ..-. $400,675 �._ $447.509_ $450 871 $479 672 $494 486 $717199 GENERALFUNDTRANSFER.&IN-LIEU-TAX $1,944437 11i $2,132,429 $2.1017,190....._F $2168166 ; .$2,174,755 $2,045,171 -.._.. - L.. — — -- n_ . .— TOTALCOSTS — _ $20,055,233 1 $20 60Q200 .`$17 554 766_ $16,939 042_ . $5,428,826 $27,_329140 _ ... RETAIL SALES(NIWh} 223,904 226,116 236,548 249,334 244,769 235,625 $1 $19,830,825 $ 0,745,733 $218709 $21466, 31 $22,464784 RETAIL REV7 ^ .. OPERATING INCOME L( OSS) J$418,404 ( ($769,375) $3190 967 $4,928 D48 --$16 037,905 ($4.864 I CCASH AND INVESTMENT AT BEGINNING OF YEAR $14.848,892 $12.256,369 $12,477,889 ,-$17,694 341 $34,967,268 ... - _._ $769,375) OPERATING INCOME ( $3.190.967....... $4,92M, 48_... $16 037 905 ($4,864,356) ;ADJUSTMENTS ($1,448,291) ($1324,929) ($342233) $1253,521 $5,143135 TRANSFER OUTS _ ($1,111,776)x_($2$2304,289)__{$217576) ,;....($2625,601) __{$6,357,125) . _— —_ — — -- CASHFLOWS FROM FINANCING ACTIVITIES $748,296 $474,114_($490.602) $42,465_ ${ 5,846 119}J CASH FLOWS FROM INVESTMENT ACTIVITIES `___,,__ $1,485,415 $1,133,885 $1,3, 38.815 _$2.564.637 $1,073.034 EXTRAORDINARY $0 _. $0 _ _$0 $0---.. CASH_AND INVESTMENT_AT END OF YEAR ,___,-._ f $12,256,369 V2.477.889 $17.694.341 $34,967.268 $18 926,93 C) (*) Settlement of Enron's Contracts 3 iV O Variances to August 26, .2002 Projections �. Slower recovery of retail sales — updated projections of retail sales are about 3.5% lower than August 26, 2002 projections Continued conservation efforts Slower economic growth —r Impact: $800,000 - $1,000,000 per year less retail sales than previous projections ,h z. Higher cost of new distribution substation SCE costs have increased from $2.5 million to $5.5 million It will result in increased financing and on-going operation and maintenance costs. --► Impact: $300,000 per year more than previous projections 3. Renewable Energy Procurement Limited funds to ""Buy-Down" the above-market costs of renewables --► Impact: $100,000 per year of above-market costs to be absorbed a 4 N Cost and Revenue Projections : Assumptions r Wholesale power costs in the future remains stable in the range of $40 to $50/MWh for peaking power No major expenditures in refurbishment or replacement of San Juan #3 San Juan #3 availability remains at historical level of 90% on an annual basis Distribution & customer service costs will escalate at 3% per annum New substation will be funded by debt. Additional SCE costs for the interconnection of about $5,500,000 will be required General Fund transfer & in-lieu-tax will remain at current level of 10% of retail revenues. Retail sales will grow at 1.5% per annum from FY 02-03 level. Surcharge of one cent per KWh will remain through June 2003. d 5 iv N Cost and Revenue Projections : : . Budget Projections —Base Case BASE CASE PROJECTIONS ..---- -... -....... -.. _. . .............- ............... .. .. - -- ._ .... COST COMPONENT FY 02-03 FY 03-04 FY0405 FY 05-06 FY 66-07 FY 07-08 TRANSMISSION _mm $1287310 $1,490950 $1300,000 $1.300000 $1,300000 $1,300000 POWER.RESOURCE.,., _,,.,_ $13,311,825 111.13.0.29'...621 .! $13,390,362 $13.760.121 .:DISTRIBUTION&CUSTOMER SERVICE $5,713,358 $5,884,759r $6 061.302 $6,243.141 $6,430,435 $6.623.346 NEW SUBSTATION(N RESTONLY) _ __.'� $0 _$0 $10401000 ,$1,040000_ , $1,040,000 __.__ $,1__040,000 --- ..___-.......___.._.._. ----- ---'.-- DEPRECIATION $720.000 $720000 „',,..,.- $1050,000 $1,050000 $1050,000 $1,,050000 :GENERAL FUND TRANSFER&IN-LIEU-TAX $2,204,957 $2,243,796_ $2.277,453, _$2,311,615 $2,346,289 $2,381,483 ,TOTAL COSTS $23,573,625 $23,291,505 $25,040,580 $24,974,376 $25,557,086 $26,154,952 . PROJECTED RETAILSALES(M1Nh)_ _,_„_,_, 241 700_ 245.326 _ 249,005_. _252.740 _ 25ft532 2601380 PROJECTED RETAIL REVENUE ..$22.049 ^ $22,437,961 $22 774 530 $23,116 148 j $23.462.890 $23,814.834 SURCHARGE @ONE CENT PER K4Vh $2.271.980 $0 _$0_.. $0 . . $0 _ $0 jTOTAL REVENUES $24,321,546 $22,437,961 $22,774,530 $23,116,148 $23,462,890 $23,814,834 !ADDITIONAL REVENUE REQUIREMENT ($747,921) $853,544 $2,266,049 $1,858,228 $2,094,195 $2,340,118 , :REQUIRED RATE ADJUSTMENT IN % 3.80% 9.95% 8.04% 8.93% 9.83% (CASH AND INVESTMENT AT BEGINNING OF YEAR $18,926,939 $16,674,860 $13,821,316 $11,555,267 $9,697,039 $7,602,844 . . -. ..- OPERATING INCOME ($853.544)_. ($2 266_049) ($1,856,228) ($2 094,195) ($2,340J_ j ADJUSTMENTS :.-....($2.000,000)_ ..........$0 $0__.._.. .....$0 .... $0 $0 TRANSFER OUTS_____ �_ _ _ ($300,000)____($300,000)_,T_($300000)_ ($30P.000) ($30Q000)_ ($300000) _($1000,000) ($2,000000 $0........ $0 $0 .. _ $0 CASH FLOWS FROM FINANCING ACTIVITIES ) ,,,,,. CASH FLOWS FROM INVESTMENT ACTIVIT_IES .._, ;,...,. $300,000 $300,000 .,, $300,000 $300,000 $300,000 $3..... EXTRAORDINARY ITEMS (CASH AND INVESTMENT AT END OF YEAR $16,674,860 $13,821,316 $11,555,267 $9,697,039 $7,602,844 $5,262,725 iV 6 W Cost and Revenue Projections : f Conclusion — Base Case 1. Revenue requirement for power resources costs will remain stable for the study period z. Distribution & Customer service costs combined with the costs of new substation will outpace the retail revenue growth deficit as earl s, Light Fund will run into Y as FY 02-03 if the current- retail rate remain in place 4. Retail rate increase will be necessary to support the revenue requirement as well as to provide some moderate level of contingency reserves. 7 0 N Proposed Rate Increase —Scenario 1 n SCENARIO 1 5%RATE INCREASE AS OF JULY 1,2003,AND REDUCE SURCHARGE BY $O.00SMVVh _ _... ...... ....... _ _ .. .. COST COMPONENT i FY 02-03 FY 03-04 FY04-05 FY 05-06 FY 06-07 FY 07-08 !TRANSMISSION $1,490950 ,.,,.,$1300000. $1,300,000 $1300000 $1,300,000 ,.POWERRESOURCE _, t $13,648,000 $12,952,000 $13311,825 $13,029,621 $13,390,361 $13,760,120 DISTRIBUTION&CUSTOMER SERVICE $5,713,358 $5,884,759 ,.. $6061,302„ $6,243,141 $6,430,435 $6,623,348 NEW SUBSTATON _ $0 _$D _ _$1040,000 _$1 040 000 I._ $1040 000 $1,040,000 DEPRECIATION $720000 $720,000 $1,050,000_ $1,050000 $1,050,000 j $1,050,000 GENERAL FUND TRANSFER&IN LIEU-TAX $2 204,957 $2,382,160 .,._$2,417,892„ $2,454,160 $2,490,973 $2,528,337_ !TOTAL COSTS $23,573,625 $23,429,868 $25,181,019 $25,116,922 $25,701,769 $26,301,805 PROJECTED RETAIL SALES(MWI ) 241,700 245.326 249,005 252,740 .256,532 260,380 PROJECTED RETAIL_REVENUE. ._�.,,.,$22,049 566 $23,821,597 .,_.$24,178 921, $24.541.604 _$24 909,729.,.. $25.283.374 ,SURCHARGE 0ONE CENT PER KWh $2,271,980 $1,'153,030 $0 .,..,,.,,,._ $0 ., $0 ..,.. $0, !TOTAL REVENUES - $24,321,546 $24,974,627 $24,178,921 $24,541,604 $24,909,729 $25,283,374 ADDITIONAL REVENUE REQUIREMENT (5747,921) ($1,544,758) $1,002,098 $575,318 $792,040 $1,018,431 REQUIRED RATE ADJUSTMENT IN% _ -6.19% 4.14% 2.34% 3.18% 4.03% I ;ELECTRIC NET REVENUES AVAILABLE ;FOR DEBT SERVICE , $2,465,794 $2,928,843 $2,748,933 $2,559,907 ESTIMATED DISTRIBUTION DEBT SERVICE $710,000 $710,000 $710,000 $710,000 ESTIMATED DEBT SERVICE COVERAGE RATIO 3.5 4.1 3.9 3.6 CASH AND,.INVESTMENT AT BEGINNING OF YEAR J...$18926,939 $18,674860 $16,219,618 1 $15,21.7521 . ,;.,.,$14,642,203 $13,850,163 ........ _.. __ O .... .,.., ,_ _„ __($1,002,098) ($575318) ��, ($792,040).,.._ .1111 ADJUSTMENTS .,,.,,.., ($2 000,000) .,$0 $0 .._ $0 _ $0 ....,.., $0 TRANSFER OUTS ($300 000) ($300,000) ($300,000). ($300,000) ,.($300,000)..., 30 , ($ 0,000) _ !CASH FLOWS FROM FINANCING ACTIVITIES __ ($1.000,000) ($2,000,000) $0 ..,,. $0 $0 ...,.. $0 ;CASH FLOWS FROMINVESTMENT_ACTIVITIES ..,,_ $300,000 $300,000 __._ $300,000_._ $300000 _$300,000 ,,,. $300000 EXTRAORDINARY ITEMS... ...... ........... $0 ........ .,,._$0 _. $0 ._.. $0 $0 ........ .$ . _ ':. !CASH AND INVESTMENT AT END OF YEAR $16,674,860 $16,219,618 $15,217,521 $14,642,203 $13,850,163 $12,831,732 CD M Proposed Retail Rate Increase . . Conclusion — Scenarios �. The 5% rate increase will provide sufficient revenues to cover expenses in FY 03-04 with very moderate level of contingency reserve available. i. Additional rate increase in the range of 5% to 10% will be required starting FY 04-05 to support the capital costs of the new substation, renewable energy procurement given the slower retail sales growth. 0 9 N m ml- 71 Proposed Rate Increase — Scenario 2 SCENARIO 2-10% RATE INCREASE AS OF JULY 1, 2003,AND RESCIND THE,ONE CENT PER KWH SURCHARGE ......... (COST COMPONENT r FY 02-03 FY 03-04 1 FY04-05 FY 05-06 FY 06-07 FY 07-08 TRANSMISSION ............ $1287,310 ! $1490950 ' $1,300,000 $1,300,000 $1,300,000 $1,300000 ' ER,;POWRESOURCE __ _ ............... $13,648,000 $12,952000 _I $13,311,825 $13,029621 .,..,..8.13,390,361 $13760120 DISTRIBUTION&CUSTOMER SERVICE $5,713,358 $5,884759 $6,061,302 $6,243141 $6430435 - $6,623,348 ANEW SUBSTATION $O $0 L.. $1040000 $1,040000 $1,040000..,., $1040,000 DEPRECIATION $720000 $720,000 ( $1,050,000 $1,050000 $1050000 $1,050,000 ',GENERAL FUND TRANSFER 8 IN-LIEU-TAX ..,..,, $2 204,957 $2490 544 !.._ $2,527,903 $2,565 821 ' $2 804,309 $2,643,373 ..... .... .. .. ...2,4 .. TOTAL COSTS , $23.573.625 $23,538.253 $25,291.029 $25.228.583 $25.815.104 $26.416.841 .......----- .........-- _.._... ......... .......... ..... ................ ................ ......1...... _._. __ .......... _. _. _. PROJECTED RETAIL SALES(MWh) 241 700 245.326 1 249,005 252,740 j 256,532 260.380 PROJECTED RETAIL REVENUE $22,049566 $24,905,445 $25,279,026 $25858212 $26,043,085 $26433731 SURCHARGE ONE CEM'PER KVJh _ $2.2 .....$0 �... $0 ... . $O $0 $0 I ::TOTAL REVENUES $24,321,546 $24,905,445 $25,279,026 $25,658,212 $26,043,085 $26,433,731 ':ADDITIONAL REVENUE REQUIREMENT. ($747,921) ($1,367,192) $12,003 ($429,629) ($227,981) ($16,890) :REQUIRED RATE ADJUSTMENT IN °b, -5.49% 0.05% -1.67% -0.88% -0.06% 1ELECTRIC NET REVENUES AVAILABLE ;FOR DEBT SERVICE ' _ $3,565,900 $4,045,450 $3,882,289 $3,710,263 I (ESTIMATED DISTRIBUTION DEBT SERVICE $710,000 $710,000 $710,000 $710,000 (ESTIMATED DEBT SERVICE COVERAGE RATIO 5.0 5.7 5.5 5.2 ,CASH AND INVESTMENT AT BEGINNING OF YEAR . . $18,926,939 $18,674 860 _( $16042 052 $16.030,049 $16,459878. $16,6871 .659 ..... i ... ._.. _. ... PPERAIING,INCOME ..,,., ,.,..,,.,. $747921 i $1,367,192 ` , ($12003), $429,829 $227961..,.,,.., $16,890 ADJUSTMENTS ($2 000,000) $0 $0 $0 $0 $O TRANSFER OUTS ($300,000) , ($300000) � ($300000) ($300 000) ($300.000) ($300,000) j A CASH FLOWS FROM FINANCING ACTIVITIES ($1,000,000) ($2 000 000) $0 $0 $0 $0 :CASH FLOWS FROM INVESTMENT ACTIVrrIES $300 000 $300 000 $300 000.,. $300 000 , $300,000 $300,000 :EXTRAORDINARY ITEMS _.. $0...... ........$0 $0 .... $O j $0 .... $0 C:) !CASH AND INVESTMENT AT END OF YEAR $16,674,860 $16,0429052 $16,030,049 $16,459,678 $16,687,659 $16,704,549 N 10 Proposed Retail Rate Increases Conclusion — Scenario2 1. The 10% rate increase will provide sufficient revenues to cover expenses in FY 03-04 and beyond with very moderate level of contingency reserve available. i. Additional rate increase will be needed to rebuild Light Fund cash reserves. o N 00 Retail Rate Comparison — As of July 1, 2003 Id IMN, Residential rate: 33 days 488 kWh usage $60.00 Azusa: $ 48.97 $58.00 Edison: $ 58.30 $56.00 Edison 19% higher $54.00 $52.00 ■ Azusa ■ SCE $50.00- $48.00- $46.00-Z 50.00$48.00$46.00 $44.00 C) N 12 co Retail Rate Comparison — As of July 1 , 2003 • Small Business GS-I rate — Summer & Winter 50 kW Demand and 12,600 kWh usage/mo. • Summer: $2,500.00 • Azusa: $ 11499 $2,000.00 • Edison: $ 21023 $1500.00 ■ Winter: ■ Azusa Azusa: $ 11499 $15000.00 ■ SCE Edison: $ 11513 $500.00 • Edison vs. Azusa J[ ■ Summer: 34.96% higher $0.00 Summer Winter • Winter: 1% higher 0 13 w 0 7 ,, Retail Rate Comparison — As of July 1 , 2003 • Small Business GS-2 rate — Summer & Winter 150 kW Demand and 34,800 kWh usage/mo. • Summer: $69000.00 • Azusa: $ 31841 $5,000.00 • Edison: $ 5,571 $4,000.00 • Winter: $3,000.00 ■ Azusa • Azusa: $ 31841 $29000.00 ■ SCE' • Edison: $ 4,409 $i,000.00 ■ Edison vs. Azusa $0.00-1411 ■ Summer: 45% higher Summer Winter • Winter: 14.8% higher a w 14 r Retail Rate Comparison — As of July 1 , 2003 ■ Large Business TOU rate — Summer & Winter 1,100 kW Demand and 700,000 kWh usage/mo. Summer: $909000.00 ■ $809000.00 • Azusa: $ 67,233 $70,000.00 • Edison: $ 89,058 $609000.00 $509000.00 ■ Azusa ■ Winter: $409000.00 IMSCE Azusa: $ 58,547 $30,000.00 Edison: $ 61,033 $20,000.00 $10,000.00 • Edison vs. Azusa $0.00 • Summer: 34.5% higher Summer Winter • Winter: 4.2% higher a 15 w N Azusa Water Fund Costs,, Revenues and Rates Azusa Utility Board May 21, 2003 0 u 16 ca Historical and Existing Costs & Revenues Actual Actual Actual Actual Estimate* FY 1998-99 FY 1999-00 FY 2000-01 FY 2001-02 FY 2002-03 Operating Revenue $11,963,158 $14,794,377 $13,730,974 $15,022,801 $14,022,974 Cost Component Distribution & Customer Service $4,981,226 $8,370,983 $7,027,524 $7,283,344 $7,501,844 Depreciation $1,197,604 $1,350,304 $1,312,065 $1,314,834 $1,360,000 Franchise & In-Lieu Tax to City $1,181,874 $1,286,576 $1,309,879 $1,325,920 $1,402,297 Debt Service (Interest Only) $1,192,902 $1,178,618 $1,167,130 $1,243,967 $1,204,355 Total Costs $8,553,606 $12,186,481 $10,816,598 $11,168,065 $11,468,497 Net Operating Income $3,409,552 $2,607,896 $2,914,376 $3,854,736 $2,554,477 Revenues Available for Debt Service $5,789,030 $5,244,776 $5,536,320 $6,495,490 $5,316,775 Debt Coverage Ratio 3.6 3.3 3.4 3.7 3.1 0 17 w .r, 0 Historical and Existing Cash & Investments Actual Actual Actual Actual Estimate* FY 1998-99 FY 1999-00 FY 2000-01 FY 2001-02 FY 2002-03 Beginning Cash Balance $10,776,706 $11,864,216 $14,638,443 $16,383,825 $18,880,433 Operating Income $3,409,552 $2,607,896 $2,914,376 $3,854,736 $2,554,477 Misc Adjustments -$1,207,355 -$129,266 $2,609,850 -$675,842 -$145,000 Depreciation $1,197,604 $1,350,304 $1,312,065 $1,314,834 $1,360,000 Additional Transfers -$747,196 -$404,071 -$513,646 -$397,376 -$1,383,625 Capital Projects and Related Items -$1,770,224 -$1,058,426 -$4,699,239 -$1,481,012 -$3,500,000 Principal on Existing Debt -$430,000 -$401,656 -$470,000 -$490,000 -$515,000 Interest on Investments $635,129 $809,446 $591,976 $371,268 $382,303 Year End Cash and Investments $11,864,216 $14,638,443 $16,383,825 $18,880,433 $17,633,588 O w 18 cn Cost & Revenue Projections : Assumptions • Operating Costs will increase by 3% annually • Households will increase by 1.5% annually • Franchise fee and In-Lieu Tax will be transferred to City at current rate of 10% • All interest income transferred to City • $20 million Filtration Plant will be bond financed at 5.5% over 30 years beginning FY 2004-05 • Capital costs will be $3.5 million per year for next 5 years 0 19 w a� Projected Costs & Revenue w Next 5 Years—No Rate Increase Estimate Estimate Estimate Estimate Estimate FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Operating Revenue $15,133,319 $15,360,318 $15,590,723 $15,824,584 $16,061,953 Cost Component Distribution & Customer Service $7,726,900 $7,958,707 $8,197,468 $8,443,392 $8,696,694 Depreciation $2,260,000 $2,376,667 $2,493,333 $2,610,000 $2,726,667 Franchise & In-Lieu Tax to City $1,513,332 $1,536,032 $1,559,072 $1,582,458 $1,606,195 Debt Service (Interest Only) $1,175,540 $2,244,534' $2,196,409 $2,145,380 $2,090,259 Total Costs $12,675,772 $14,115,939 $14,446,283 $14,781,230 $15,119,814 Net Operating Income $2,457,547 $1,244,379 $1,144,441 $1,043,354 $942,139 Revenues Available for Debt Service $6,230,879 $5,157,078 $5,196,846 $5,235,812 $5,275,001 Debt Coverage Ratio 3.6 1.7 1.7 1.7 1.7 O 20 Projected Cash & Investments Next 5 Years—No Rate Increase Estimate Estimate Estimate Estimate Estimate FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Beginning Cash Balance $17,633,588 $18,166,135 $17,296,073 $16,402,554 $15,478,593 Operating Income $2,457,547 $1,244,379 $1,144,441 $1,043,354 $942,139 Misc Adjustments -$145,000 -$145,000 -$145,000 -$145,000 -$145,000 Depreciation $2,260,000 $2,376,667 $2,493,333 $2,610,000 $2,726,667 Additional Transfers -$352,672 -$363,323 -$345,921 -$328,051 -$309,572 Capital Projects and Related Items -$3,500,000 -$3,500,000 -$3,500,000 -$3,500,000 -$3,500,000 Principal on Existing Debt -$540,000 -$570,000 -$595,000 -$625,000 -$660,000 New Filtration Plant (Principal Only) -$276,108 -$291,294 -$307,315 -$324,217 Interest on Investments $352,672 $363,323 $345,921 $328,051 $309,572 Year End Cash and Investments $18,166,135 $17,296,073 $16,402,554 $15,478,593 $14,518,181 c� w 21 00 Conclusions- No Rate Adjustments y 1. Without additional funding through rate adjustment, our net operating income will be reduced over next 5 years 2. There is insufficient cash on hand to fund new filtration plant, and so financing construction will be necessary 3. Financing filtration plant construction in 2004-05 will lower Debt Coverage Ratio and will begin to deplete reserves without rate adjustment 4. A rate adjustment is needed to improve our net operating income, Debt Coverage Ratio and to maintain adequate reserves for 0 emergencies and capital improvements W 22 CO Income & Debt Coverage 4. 35% and then 5% Biennial Rate Adjustments Estimate Estimate Estimate Estimate Estimate FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Rate Increase 4.35% 5% 5% Operating Revenue $15,791,618 $16,028,492 $17,082,366 $17,338,601 $18,478,614 Cost Component Distribution & Customer Svc $7,726,900 $7,958,707 $8,197,468 $8,443,392 $8,696,694 Depreciation $2,260,000 $2,376,667 $2,493,333 $2,610,000 $2,726,667. Franchise & In-Lieu Tax $1,579,162 $1,602,849 $1,708,237 $1,733,860 $1,847,861 Debt Service (Interest Only) $1,175,540 $2,244,534 $2,196,409 $2,145,380 $2,090,259 Total Costs $12,741,601 $14,182,757 $14,595,447 $14,932,632 $15,361,480 Operating Income $3,050,017 $1,845,736 $2,486,919 $2,405,969 $3,117,134 Revenues Available for Debt Service $6,889,178 $5,825,252 $6,688,489 $6,749,829 $7,691,662 Debt Coverage Ratio 4.0 1.9 2.2 2.2 2.5 0 23 0 Reserve—Cash & Investments a 4. 35% and then 5% Biennial Rate Adjustments Estimate Estimate Estimate Estimate Estimate FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Rate Increase 4.35% 5% 5% Beginning Cash Balance $17,633,588 $18,758,605 $18,489,899 $18,938,858 $19,377,512 Operating Income $3,050,017 $1,845,736 $2,486,919 $2,405,969 $3,117,134 Misc Adjustments -$145,000 -$145,000 -$145,000 -$145,000 -$145,000 Depreciation $2,260,000 $2,376,667 $2,493,333 $2,610,000 $2,726,667 Additional Transfers -$352,672 -$375,172 -$369,798 -$378,777 -$387,550 Capital Projects and Related Items -$3,500,000 -$3,500,000 -$3,500,000 -$3,500,000 -$3,500,000 Principal on Existing Debt -$540,000 -$570,000 -$595,000 -$625,000 -$660,000 New Filtration Plant (Principal Only) -$276,108 -$291,294 -$307,315 -$324,217 Interest on Investments $352,672 $375,172 $369,798 $378,777 $387,550 Year End Cash and Investments $18,758,605 $18,489,899 $18,938,858 $19,377,512 $20,592,095 24 r Conclusions— a With Rate Adjustments Proposed rats adjustments will : Improve our net operating income Improve Debt Coverage Ratio Allow us to maintain adequate reserves for emergencies and capital improvements 25 0 .o. N Water Rate Comparison $0 $10 $20 $30 $40 $60 $60 $70 $80 $90 $100 La Verne $90 1 Claremont 88.1 San Dimas 'No"" _ _ $ 15.62 Rowland Water District $70 47 West Covinaim OWN - $14.79 Duarte ; $6:.34 Monrovia �:. $ .64 Suburban Water System (Covina) $53.53 Covina - _ $51.94 Monterey Park $50.12 Alhambra $49. s Azusa (proposed) S47.51 Azusa (current) $45.9c Glendora s41.80 (based on 3/4"meter and 34 units(ZD 17 ccf per month) W ` Policy Implication of Bond Financing on Retail Rate Setting Bond Indentures typically require the issuer of bonds to maintain certain debt coverage ratio to provide assurance to bondholders of debt repayment. Typical debt service coverage ratio for financially strong electric utilities ranges from 4 to 6 times annual net income before depreciation and return to "shareholders". For water utilities, a debt service coverage ratio of 2 to 3 times is considered strong due to lower business risks. 27 0 Policy Implication of Bond Financing on 71- Retail Rate Setting (Continue) Example: If the City issues electric revenue bonds with a debt coverage ratio requirement of 5 times net income, it will mean the Light Fund annual net income will be at a minimum 5 times the annual debt service amount. Assuming annual debt service of $800,000 on the bonds, a debt service coverage ratio of 5 times means Light Fund annual net income will need to be at a minimum of $4 million. • Failure to maintain the debt coverage ratio will violate Bond Indentures and will cause the bonds to be immediately due and payable. • In addition, the Indentures will most likely require the.City to establish "priorities" in the use of Light Fund operating revenues. Typically such priorities in the descending order of disbursements are: 1. Operation and maintenance expenses 2. Debt service on the bonds 3. Depreciation and return to "shareholders", i.e., transfers to General 28 Funds in our case Policy Implication of Bond Financing on n Retail Rate Setting (Continue) coNcLUSION: The City will be required to set its retail rates at all times at sufficient level to ensure compliance with Bond Indentures debt coverage requirement. Failure to do so will have severe consequences to Light Fund finances. 29 0 s Transfers to the City General Fund LIGHT AND WATER COMBINED FY 96-97 FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 Franchise and In-Lieu Tax $2,974,819 $3,122,650 $3,289,064 $3,454,742 $3,484,634 $3,371,091 Transfers Out $530,048 $1,785,069 $3,051,485 $621,647 $3,139,225 $7,772,545 Allocated Budget Costs N/A N/A N/A $359,760 $493,107 $774,300 Total Transfers $3,504,867 $4,907,719 $6,340,549 $4,436,149 $7,116,966 $11,917,936 Pct of Total Revenues 11.5% 16.3% 19.4% 12.1% 20.2% 31.8% Pct of Net Operating Income 388.7% 431.9% 81.4% 50.9% 35.4% 5085.6% Notes: "Retail Only" Light Revenue considered in above for "Pct of Total Revenues". p Allocated Budget Cost info not readily available for FYs 96-99. 30 Next Steps 1. Initial presentation to Utility Board in May z. Public hearing - Second City Council Meeting in June 3. Implement new retail rate beginning July 1, 2003 a 31 00 V�A CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITI� DATE: MAY 21, 2003 SUBJECT: SELECTION OF THE UNDERWRITER FOR UPCOMING BOND FINANCING RECOMMENDATION It is recommended that Azusa Utility Board/City Council waive formal Request for Proposal process and approve the selection of UBS Paine Webber or its successor, as the underwriter for the upcoming electric revenue bond issuance and 1993 Series Water Revenue bond refunding, and take additional actions as may be appropriate with respect to purchase agreements with UBS PaineWebber. BACKGROUND Azusa Light &Water is about to issue revenue bonds to finance the construction of Azusa's second electric substation and it is also In the process of refinancing f993 Series Water Revenue bonds, close to $30 million In total. Staff formed a working committee consisting of City Treasurer, Interim Finance Director, Assistant Utilities Director of Resource Planning, Senior Electrical Engineer, Assistant to Director of Utilities, Financial Advisor, and the Senior Accountant of Redevelopment Department. The working committee solicited proposals from three underwriters of municipal bonds that the committee has working knowledge of or is familiar with. After careful evaluation of the respective proposals the working committee recommended UBS PaineWebber to be the underwriter for the bond issuances. Several attributes UBS PaineWebber brings to this project are (1) its familiarity with Azusa's electric utility respecting Financing activities through Azusa's joint project financings under Southern California Public Power Authority; (2) the depth of underwriting capability in the financial markets; and (3) the responsiveness and the understanding of issues relating to City's Issuances. 009 The scope of work provided by the underwriter includes among other things (1) structure the bond issuances to achieve the lowest interest costs to the City; (2) market the bonds in the financial markets on behalf of the City; and (3) serve as the intermediary between the investors and the City to enable the sales of bonds. FISCAL IMPACT Costs of the underwriter services are estimated at $215,000. Fees will be reimbursed from the bond proceeds and thus included in the prospective debt service payments which will be budgeted on an annual basis. Prepared by: Bob Tang, Assistant Director of Resource Management 010 f co AZUSA r:nr a w�rrr CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MAY 21 , 2003 SUBJECT: ADOPT AZUSA LIGHT &WATER UTILITY SERVICE CONSTRUCTION STANDARDS &SPECIFICATIONS FOR ELECTRIC AND WATER SERVICES. RECOMMENDATION It is recommended that the Utility Board/City Council adopt the utility service construction standards & specifications for both electric and water services to be used in constructing customer utility services. BACKGROUND In March 2002, Azusa Light &Water staff established a goal of improving communications with utility customers by providing a construction standards &specifications of utility services. These standards are used as construction guidelines by project developers, contractors and individual homeowners, when planning or constructing their electric and water facilities in order to receive utility services. Staff had prepared, updated &compiled these standards and specifications for posting at Azusa Light 8. Water website. This will allow for efficient dissemination to prospective customers by downloading electronically from our website. As an alternate, customers may obtain hardcopies of these standards when they apply for utility service. By having a duly adopted standard, customers are fully informed of requirements, and uniform methods of construction are consistently applied. FISCAL IMPACT . Utility Standards are for information only . No fiscal impact to Azusa Light &Water. Prepared by: F. Langit Jr. PE, Senior Electrical Engineer Hien Vuong, PE/ Nguyen Bui - Utility Associate Engineers Attachments: ' M &-dricStandards Water Standards Oil 3 G i ELECTRIC STANDARDS AZUSA LIGHT & WATER Joseph Hsu-Director0'Utilities Federico Langit Jr,PE-Senior Electrical Engineer May, 2003 012 F ELECTRIC STANDARDS TABLE OF CONTENTS ' NUMBER DESCRIPTION ED1 GENERAL CONSTRUCTION NOTES ED2 GENERAL NOTES FOR OBTAINING ELECTRIC SERVICES ED3 CONDUIT/DUCT CROSS SECTION ED4 GROUNDING DETAIL FOR UG PRIMARY STRUCTURES ED5 RISER POLE DETAIL ED6 4'X4.5' 10 TRANSFORMER PAD AND 17"X30"PB ED7 6'X8'-6"TRANSFORMER PAD W/4'X7'ENCLOSURE X42"DEE ED8 8'X10'TRANSFORMER PAD W/4'X7'ENCLOSURE X42"DEEP ED9 10'X12'TRANSFORMER PAD W/4'X7'ENCLOSURE X42"DEET ED1O SWITCH SLAB BOX EDI I STREET LIGHT HANDHOIE &COVER - 12"X22"X18" ED12 SECONDARY PULLBOX&COVER- 17"X30"X18" ED13 PULLBOX&COVER 2'X3' ED14 3'X5' PULLBOX W/SPRING ASSISTED HINGED COVER ED15 4'X6' PULLBOX W/SPRING ASSISTED HINGED COVER ED16 6'X8'X7' VAULT WITH 4'X5' OPENNING ED17 6'X10'X7' VAULTWTTH4'X5' OPENNING ED18 6'Xi2'X7'VAULT WITH 4'X5' OPENNING ED19 PROTECTIVE BOLLARDS FOR PAD MOUNT EQUIPMENT ED20 STREETLIGHT ED21 4'X5'TRAFFIC VAULT NECK WITH CONCRETE COVER ED22 RESIDENTIAL METER PANEL 200 AMPERES MAXIMUM,INSTALLATION REQUIREMENTS 013 GENERAL CONSTRUCTION NOTES ' INSTALLATION OF UNDERGROUND ELECTRIC DISTRIBUTION SYSTEM RESIDENTIAL, COMMERCIAL AND INDUSTRIAL PROJECTS Revised: May 2003 OWNER, PROJECT DEVELOPER OR CONTRACTOR NOTES: 's Owner, project developer or contractor shall furnish all labor, material, equipment and services to construct and complete an underground electric substructure system. These include but not limited to excavation, shoring of excavation, installation of conduits and concrete substructures, concrete encasement, backfilling, compaction of backfill, permanent resurfacing, reconstruction of concrete s improvements, disposal of construction debris and all appurtenant work. 1) PROJECT PLANS: Owner, project developer, consultant or designated agent shall prepare a drawing or plans showing the scope and extent of the work involved. Project plans involving the method of electric service or incoming utility lines for electric service shall be submitted for review to Azusa Light & Water. All underground electric substructures shall be installed as per approved plan and specifications for the project. 2) EXCAVATION PERMIT: Prior to starting construction, the owner, project developer or contractor shall obtain duly approved excavation permits for any work that involves digging in the public right-of-way or easements. Excavation Permit: Engineering Department 213 East Foothill Boulevard Azusa, California 91702 Tel. # (626) 812-5284 3) CONTRACTOR RESPONSIBILITY: Contractor shall notify Underground Service Alert (USA) before commencing with any excavations. Contractor shall determine the exact location of all underground substructures or utilities including service connections and protect these existing substructures during construction. Any damage done by the contractor to these existing substructures will be the total responsibility of the owner / contractor and that these damaged substructures shall be restored to their original condition. Unknown field conditions, existing substructures or utilities not shown on the approved plan shall be the responsibility of contractor performing the work. ; 4) CONSTRUCTION INSPECTION: Installation of underground electric ' conduits & substructures require field inspection and approval by Azusa Light & Water Department during construction. Contractor to notify Azusa Light & Water Department and schedule an appointment for inspection 24 hours in advance. Completed installation "as built" drawings shall be submitted by contractor or owner. Installed underground substructures will not be accepted unless duly inspected and approved by Azusa Light & Water Department. Contractor or owner shall perform the corrections required by Azusa Light &.Water prior to pulling cable and energizing the service. ELECT�i�C STANDARD i OMAM ,� GENERAL CONSTRUCTION NOTES Di AZUSA ,� 1l13 �vvnovEm i s F 4 LIGHT a LWATER DAM 014 5) ELECTRIC SUBSTRUCTURE INTERCEPTION: Contractor shall contact Azusa Light & Water Department and schedule a safety man to be present when entering or breaking into conduits, vaults, pull boxes or transformer pads that contain energized Cables & equipment. 6) FIELD CHANGES / PLAN REVISIONS: If it becomes necessary to make a change or deviate from the approved plan, Contractor shall duly notify the owner, Engineer, and authorized representative of the Azusa Light & Water Department before implementing any major changes from the approved plan. The Engineer shall give the contractor a duly revised plans which shall become part of the approved plans. Contractor shall avoid verbal orders when implementing major plan changes or revisions in the field. 7) RIGHT-OF-WAY / EASEMENTS: Installation of underground electric substructures in private property requires the grant of easement. Landowner shall secure and grant to Azusa Light & Water Department the electric easement necessary to install the electric facilities in private property. CONDUITS: 8) CONDUIT SPECIFICATION: All conduits shall be approved PVC plastic schedule 40 and shall conform to NEMA Standard #TC-6 and ASTM #F512. Conduits shall be installed as per plan and in accordance with latest revision of Western Underground Committee Standard Placement Instruction. 9) CONDUIT SWEEPS & BENDS: All conduit sweeps and bends shall be approved PVC plastic schedule 80. Minimum radius, unless otherwise specified, shall be 12 times the conduit diameter in inches. Steel riser pole sweep shall be installed including the first ten feet of straight steel riser pole conduits when riser conduits are exposed to potential damage from vehicular traffic. Conduit sizes are 5" or 4" for primary conduits, 4" for secondary conduits and 3" for all service conduits as specified in the approved plan. In any conduit run the total angular degree of sweeps and bends between two connection points shall not exceed 270 . 10) SUBSTRUCTURE COVERAGE & SEPARATIONS : All conduits installed shall _ have minimum coverage of 36" from finished grade to top of conduit concrete encasement. Conduits installed in residential private property shall have minimum coverage of 30" from finished grade to top of conduit. Minimum coverage may be reduced to 24" with department approval. Electric conduits shall be separated away from existing substructures or utilities by .a minimum parallel clearance of 12" horizontal and 6" vertically when crossing. other utilities' or o substructures shall not be installed in parallel directly above + electric conduits. ELECTRIC STANDARD 0"" GENERAL CONSTRUCTION NOTES EDI an44443 X03 sxur 015 11) CONDUIT ENCASEMENT: All high voltage primary conduits including all conduits installed in public right-of-way or easements shall be encased in 3 sack concrete mix containing 1/4" pea gravel. A 2" separation between conduits and a minimum 3" concrete envelope shall be maintained. Plastic spacers should be placed every 8 linear feet of conduits to maintain separation and secure conduits during concrete encasement. Electric conduits shall be separated from existing gas lines by a minimum horizontal clearance of 24" (2ft.) . Low voltage secondary conduits in private residential property may be installed without concrete encasement. 12) EXCAVATION / BACKFILL: Contractor shall perform all excavations necessary to install electric substructures. The entire electric - conduits shall be laid in parallel to final finished grade. Backfill shall be built and compacted in accordance with the street trench replacement detail. All backfill, soil compaction and final resurfacing shall be the responsibility of contractor and must be in compliance with excavation permit and requirements of the City Engineer. Contractor shall submit certified compaction test report to City Engineer if required. 13) CONDUIT TERMINATION: Conduits terminating in vaults and walls of f pull boxes shall have bell ends and grouted on the inside wall. Conduits entering pull boxes from the bottom shall extend no more than 4" above the bottom of the pull box and gravel base. Contractor shall - install a 3/16" diameter polyethylene pull line in all conduits after conduits have been mandrelled. All new conduits must be mandrelled by contractor. CONCRETE SUBSTRUCTURES: 14) PULL BOX & PAD INSTALLATION: All pull boxes specified shall be installed as per approved plan and in accordance with the i manufacturer's instructions. Contractor shall provide crushed rock base under the boxes or pads. Necessary grade rings or neckings shall be provided to bring covers up to final finished grade. Contractor shall provide all necessary grouting and gasketing material to properly assemble and seal the structure. Contractor shall install two 5/8"x 8' copperweld ground rods separated six feet apart at each pad or primary pull box location. Provide 2/0 stranded bare copper ground cable, connected to the rods, into the pad or pull box. 15) TRANSFORMER PAD INSTALLATION: Contractor shall install transformer pad including slab box & base footing, as per size & location indicated on the approved plan. Transformer pads shall be situated in a secured and accessible locatiop in the customer premises. Contractor to provide the necessary grounding and barriers at pad location. Transformer pad shall be installed with a minimum all around clearance of three feet from a fixed structure. AIN& ELECTRIC STANDARD ! D~' � KV GENERAL CONSTRUCTION NOTES DWO.H0. DAM 44443 EDI AZUSA s- -03 DHEU LIGHT 8 WATER `^•�". HA AlPHODEOi ,AID 9 OF 4 016 1 16) COVERS: Contractor shall provide sealed pull box or pad covers with the proper cover finish, markings, bolts, hinged opening and lifting handles and galvanized steel or concrete covers. Covers exposed to vehicular traffic shall have traffic covers rated for H-20 loading. Cover and markings for pull boxes or pads shall be as follows: STRUCTURES COVER ALTERNATE MARKING 1 MiTERLAL MATERIAL VAULT BOLTED STEEL AZUSA CAST MANHOLE NONE HIGH VOLTAGE PRIMARY PULL BOX SPRING ASSISTED & PAD HINGED BOLTED AZUSA GALVANIZED STEEL NONE HIGH VOLTAGE SECONDARY PULL BOX BOLTED CONCRETE POLYMER CONCRETE ELECTRIC (2'x3' & 17"x30") STREET LIGHT BOLTED CONCRETE POLYMER CONCRETE ST LIGHT PULL BOX (12"X22") 17) PROTECTIVE BARRIERS: protective barriers shall be installed around transformer pads and other distribution structures as required on the approved plan or where electric equipment is exposed to vehicular traffic. 4" steel pipe barriers filled with concrete mounted at a minimum of 36" above finished grade shall be installed. 18) STREET LIGHTS: Owner, project developer or contractor shall furnish and install at locations indicated on the approved plan necessary street light pole & fixtures, foundations, pull box and completely wired to the power source or meter pedestal. end E■..E4=TR14M STANIMAR" ! D"WK1 NY OWL NO. GENERAL CONSTRUCTION NOTES EDI NEU AZUSA �,,� A;-F ov D, s-8- °3 4`F 4 LIGHT A WATER ,,,s DATA 017 GENERAL NOTES FOR OBTAINING ELECTRIC SERVICES RESIDENTIAL, COMMERCIAL AND INDUSTRIAL PROJECTS Revised: May 2003 OWNER, PROJECT DEVELOPER OR CONTRACTOR NOTES: 1) METHOD OF SERVICE: Owner, project developer, or electrical contractor shall notify and coordinate with Azusa Light & Water for any work involving method of electric service for new construction, relocation, modification or upgrade of existing electric services. All work shall be in compliance with applicable codes and utility rules & regulations. Electric Service: Azusa Light & Water - 729 N. Azusa Avenue Azusa, California 91702 - Customer Service Tel. # (626) 812-5225 Engineering Tel. # (626) 812-5213 or (626) 812-5172 2) ELECTRICAL PERMIT: Owner, project developer or electrical contractor shall obtain a duly approved electrical permit prior to starting construction work. Permits are issued by City of Azusa - Building Division. Electrical Permit: Community Development Department Building Division 213 East Foothill Boulevard Azusa, California 91702 Tel. # (626) 812-5234 3) ELECTRICAL PLANS: Owner, project developer or owner's - consultant shall prepare electrical plans for the method of electric service. Duly prepared electrical plans are required when a permit is issued by City of Azusa - Building Division. 4) INSPECTION: Electrical work involving construction of incoming electric services will require inspection by electric - utility company - Azusa light & Water. Electrical work downstream from electric service point of delivery will require inspection from the Building Inspector - City of Azusa. ELECTRICAL PANEL: 5) EUSERC: Electrical panel ratings shall be in accordance with electric utility service equipment requirements committee (Euserc) standard. Owner or electrical contractor shall arrange with manufacture to furnish and submit electrical panel drawings to Azusa Light & Water for approval prior to fabrication. ELECTR§C STAN "AFi9 MAWKI My GENERAL NOTES FOR DWO.Im DAM .4N, OBTAINING ELECTRIC SERVICE _ ED2 LIGHT 'gO1 1�0� ns wrvxovcm 2 s,..... r I I 018 I 6) PANEL INSTALLATION FOR COMMERCIAL AND INDUSTRIAL PROJECTS: Electrical panels shall be accessible and installed outside of building premises. Outdoor type electrical panels to be securely mounted on a concrete pad extending a minimum of three feet in front of panel. Protective barriers shall be installed around electric panels to prevent damage from vehicular traffic. 7) SECONDARY CONDUCTORS: Owner or electrical contractor shall furnish & install secondary service conductors from source of transformation to the panel pull section. Contractor shall terminate conductors inside the panel and Azusa Light & Water to complete connection at source. Service conductors shall have ampacity ratings and applicable insulation in accordance with latest edition of National Electrical Code. 8) ELECTRIC METER: Owner or electrical contractor shall furnish & install the meter sockets in the metering compartment in accordance with Euserc service requirements. Prior to energizing electric service, owner or person responsible for paying electric bill, shall fill out the application form for electric service and make arrangement for prepayments on the electric meter account. Electric Account: Azusa Light & Water . Consumer Services Division 729 N. Azusa Avenue _ Azusa, California, 91702 Tel. # (626) 812-5225 end. ELECTRIC STANDARD ! of..R,l MGENERAL NOTES FOR Ova.no. DA , I OBTAINING ELECTRIC SERVICE ED2 UT AZUSA ,,,r APPNOYEOt S —03 2 OF 2 LIGHT 8 WATER YA16 i 019 FINISHED GRADE OTHER CROSSING UTILITY _z OTHER f UTILITY M 10 z Y IN PARALLEL 1112�' MIN. 0a e 3• 4 S' 'FINISHED GRADE S Ic I -I I ISI ISI I - L NOTE: f z _ E I. NO OTHER UTILITY CONDUITS SHALL BE o 31 INSTALLED DIRECTLY ABOVE ELECTRIC CONDUITS. 3. . e 2. ELECTRIC CONDUITS SHALL BE SEPARATED n FROM EXISTING GAS LINES BY A MINIMUM z e• HORIZONTAL CLEARANCE OF 2120. 3. JOIN TRENCH FOR NON-PRESSURIZED UTILITY r CONDUITS MAY BE USED WITH PROPER JOIN S TRENCH DESIGN BY DEVELOPER OR CONTRACTOR AND DULY APPROVED BY AZUSA LIGHT 8 WATER. s• —I z• +3 ELECTRIC STANEPARI °m""' "" DUCT BANK CROSS SECTION °"° "°' ore .aua ED3 ...�� AZUS ��-off "6'T LIGHT & A OF � i 020 5/8' x 10' 6' MIN. COPPER GROUND ROD t GROUND RODS GROUNDING S: ELECTRODE CONDUCTOR 4 FLOOR '.. STRUCTURE FLOOR L GROUNDING t8 ELECTRODE 1 CONDUCTOR PLAN MEW A•A VIEW - GROUND ROD LOCATION DETAIL ! -III-I I WALL CONDUIT ENCASEMENT/GROUT I III .•' • .' •',"Y` y�'• KNOCKOUT CONDUIT 2/0 TW COPPER - TO GROUND ROD GROUND CABLE, OR AS SPECIFIED ON DRAWING. NOTES: 1.LENGTH OF GROUND •�"•�~ FLOOR CONDUCTOR SHALL BE A - COMPLETE LOOP INSIDE .•c � _ STRUCTURE AND ADDITIONAL FIVE '. FEET. :1 2.GROUND CONDUCTOR SHALL BE 1 BONDED TO GROUND ROD BY MEANS OF CLAMPS SUITABLE FOR GROUNDING DETAIL - DIRECT BURIAL OR EXOTHERMIC WELD ELECTIR�C STANDARD I o: wma NV GROUNDING DETAIL ]MM 44N-ft FOR UG PRIMARY STRUCTURES EDF � ] �Qtxv AZUSA ::,. 0A3 1 0. 021) Fl REMAINDER OF RISER CONDUIT TO BE PVC SCH. 80, FURNISHED BY CONTRACTOR AND INSTALLED BY AZUSA LIGHT & WATER FIRST 10 FEET OF RISER CONDUIT TO BE RIGID GALVANIZED STEEL / GALVANIZED STEEL RISER SWEEP MINIMUM RADIUS IS 12 TIMES INSTALL RISER CONDUIT DIAMETER OF CONDUIT 4° TO 6" AWAY FROM POWER POLE SURFACE - - NOTE: VERIFY WITH AZUSA LIGHT & WATER FOR QUANTITY AND SIZE OF " RISER CONDUIT. AZUSA LIGHT & WATER TO DESIGNATE RISER POLE 1 AND TO MARK QUADRANT LOCATION FOR RISER CONDUITS. EL.ECTFt1C STAN131ASA Flk 130 1p4W" CRISER POLE DETAIL 4-403 D5 AZUSAawr s —�3 i`« LIGHT & WATER � xn ��� �n 022 GUARD POST ! SEE DETAIL FINISHED PAD ELEVATION 0 - 17' X 30' PULLBOX FINISHED _ LOT GRADE DUCTS DUCT _ IIS 2' CA GROUND RODS REFER TO ELECTRIC STANDARD ED4 FOR DETAILS CHANNEL STRUT 2 PLACES 48' 54' 21-3/4 /34-3/ 29' � \ 16• ` 12' 6 GA. WELDED 00' WIRE FRAME c 17' I' THREADED L3160 HANDLING INSERT DIA. REBAR ELECT�$�C STANDARD DmA "v 4'X4.5' 10 TRANSFORMER PAD BwcLMa WITH 17"X300 PULLBOX ED6 DAM x-401 AZUSA ,,,, •PPROWLD _ `"`°T LIGHT 6 WATER oT�B i OF 023 i 72• 102• 6. OND :.., 42" 82"-84" 46"-48" 54" a. v 94" NOTE: 1. REFERENCE PART NO: JENSEN PRECAST 1(68—SB42-31 OR EQUIVALENT - 2, COVER SHALL BE GALV. STEEL (JENSEN SC3048—PGV OR EQUIVALENT) W/(6) 1/2" x 2 1/2" S.S. PENIA. HEAD BOLT, (2) PICK HOLES. WT. 250 Lbs. MARK "AZUSA HIGH VOLTAGE' ` POLYMER CONCRETE COVER IS ALSO ACCEPTABLE. r f ELECTRIC STANlMARlD owwM, 6'X8'-6" TRANSFORMER PAD W/ o..�, 4.m4.w 4' x 7' ENCLOSURE x 42" DEEP ED7 1 smzff AZ& WATER USA mm ... s-8 0�� 024 120' m: f 42. 82'— 4. •v s\ 1. REFERENCE PART NO: JENSEN PRECAST 1(810—SB42-31 OR EQUIVALENT 2. COVER SHALL BE GALV. STEEL (JENSEN SC3048—PCV OR EQUIVALENT) W/(8) 1/2' x 2 1/2' S.S. PENIA HEAD BOLT, (2) PICK HOLES. WT. 250 Lbs. MARK AZUSA HIGH VOLTAGE' POLYMER CONCRETE COVER IS ALSO ACCEPTABLE s ' � ELECTR■C STANDARD om1m, KV 8'X10' TRANSFORMER PAD W/ COM NO. o,ITE, .44.0 4' x 7' ENCLOSURE x 42" DEEP EDO AZUSA .CA... 2,2, mwnowm s -c3 �.11OF rss1 LIGHT 6 WATER pATe 025 0 0 0 0 0 0 0 0 00 0 . � 1u• 72• i NOTE: 1. REFERENCE PART NO: JENSEN PRECAST K586—SB60-31 OR EQUIVALENT 2. COVER SHALL BE 3048 RPM W/(6) 1/2" x 2 1/2" S.S. PENTA HEAD BOLT W/CAPTIVE WASHER, (2) LIFT EYES. WT. 109 Lbs. MARK "AZUSA HIGH VOLTAGE" , 1 ELECTRIC STANDARD °PAVM, KV 107(12' TRANSFORMER PAD W/ °.a.Im DAM°. , 5'x8'-6° ENCLOSURE x 60° DEEP ED9 AZUSA HT & WATER "m ..��,� s'�-03 � OF i 026 • T I NOTE: I WALLS SHOWN I FOLDED DOWN } 7/8' 0 PULLING IRON (10,000 LBS.) T-0• I 3 2'fi' I 12' ��- 14 12' 12' 0 SUMP WITH COVER. 4 I' 0 GROUND ROD ' HOLE, (2) PLACES. t PLAN VIEW (INSIDE SURFACES) = PRECAST CONCRETE ENCLOSURE OUTSIDE DIMENSIONS: 6' x 9'-6' x 7' 2'-6' x 4'-0' RPM COVER - - A' o CR(XJT(MAX47 r T 18' 1 TT T' 5' Y.O. 6• Ir 3,4. 12' 4'-6' — w•-6• 6' 6' PLAN VIEW CRUSHED ROCK BA MIN. PRECAST CONCRETE PAD 7' x 10'-6' SECTION 'A-A' NOTE: 1) FIELD VERIFY LOCATION OF CONDUIT TERMINATION. 2) CONTRACTOR TO CORE-DRILL ENCLOSURE FOR CONDUIT OPENING, AND ' GROUT CONDUITS ENTERING ENCLOSURE AROUND CONDUIT BELL END. EL.ECTR�C STANDARD °"Em R" SWITCH SLAB BOX VING.NO. BD10 DATE 444.0 AZUSA SCALE, ",. APPROYEY _03 1'«1 LIGHT 6 WATER GATE 027 LIFTING EYE (2) BOLT HOLES (2) tiG �v o � O SEE NOTE FOR COVER MATERIAL COVER FINISHED COVER / 15-5/8' fGRADE 25-I/8' / ALL PLUG OR CAP , 1B, CONDUITS CONDUITS 22' i n i u n 2' MIN.-4' MAX \ 12' y6 GA. WELDED MIN. 4' BASE OF WIRE FRAME CRUSHED ROCK FOR STABILITY PULLBOx NOTE: 1. COVER MATERIAL SHALL BE CONCRETE OR POLYMER CONCRETE 2. COVER SHALL BE RATED FOR PEDESTRIAN LOADING. i ELECTRIC STANDARD ! i oMWN, W STREET LIGHT HANDHOLE & 0�NO. RA7M -M COVER • 12" x 22" x 18" EDii ` AZUSA .�.�, N„ a LIGHT & WATER 028 a LIFTING EYE (2) ,�1 BOLT HOLES (2) 4G^I G� (2 \"-.SEE NOTE FOR COVER MATERIAL TYPICAL COVER FINISHED COVER GRADE 2' MIN. 34-3/ ALL PLUG OR CAP CONDUITS CONDUITS �I[\ V.11w.IN 2' MM.-4' MAX. t8" 6 GA. WELDED 0" WIRE FRAME 17" MIN. 4' BASE OF } CRUSHED ROCK FOR STABILITY PULLBOX 1 NOTE: I. FOR PARKWAY OR SIDE WALK INSTALLATION, PULLBOX COVER SHALL BE PEDESTRIAN RATED CONCRETE OR POLYMER CONCRETE. I 2. FOR STREET OR ALLEY INSTALLATION, PULLBOX COVER SHALL BE TRAFFIC RATED GALVANIZED STEEL. EILECTR1C STAN "ASA M D"w«, mv SECONDARY PULLBOX & Dwr�um mm 44M.W COVER - 17" x 30" x 180 ED12 � AZUSA vKm , s p -03 `OF LIGHT 6 WATER 029 i 6. 0 36" � 41• � 36 35• 24• 0 s a : 0 '-5 a W 66. OVERALL 32• NOTE: I. PULLBOX SHALL BE JENSEN PRECAST OR EQUIVALENT PART NUMBER K2436-DP36-31T FOR TRAFFIC RATED AND K2436-DP36-31P FOR PARKWAY RATED. 2. COVER SHALL BE ONE PIECE WITH STAINLESS STEEL PENTA HEAD BOLT-DOWNS, AND MARKING 'AZUSA HIGH VOLTAGE'. USE TRAFFIC RATED STEEL ? WITH GALVANIZED FINISH COVER FOR INSTALLATION IN TRAFFIC AREA. IN PARKWAY INSTALLATION, POLYMER CONCRETE COVER MAY BE USED. ELECTRIC STANDARD ! ', °"""'° "" PULLBOX & COVER, 2' ED7 X3' °"6M3 o. a,,, ,�, 3 AZUSA Un" s-�-a3 i`"OF 1 030 1 1 52 /2" }� 6 1/2" 48" 60" 36' + 1 . 1-K691, 45" 88" OVERALL \\y NOTE: I. PULLBOX SHALL BE JENSEN PRECAST OR EQUIVALENT PART NUMBER K3660-DP48-3ITSA FOR TRAFFIC RATED AND K3660-DP48-31TSA FOR PARKWAY ' RATED. 2. COVER SHALL BE TWO PIECES, SPRING ASSISTED HINGED, GALVANIZED FINISH WITH STAINLESS STEEL PENTA HEAD BOLT-DOWNS, AND MARKING 'AZUSA HIGH VOLTAGE'. ELECTREC STAN �AR� omwm mv 3ti(S' PULLBOX W/ SPRING owa ow Ir ,Am .2,w ASSISTED HINGED COVER ED14 AZUSA ,,,, s B-t�3 �`0 LIGHT Q WATER WT8 031 I 1 0 ® 6 48 r x ], 62' • � r 99' 96' 6" 72' 37• 6 7.5� 108' 84' 3 NOTE: I. VAULT SHALL BE JENSEN PRECAST OR EQUIVALENT PART NUMBER r K68-FV84-31. I E-L.ECTR�C STANDARD ! 6' x 8' x T VAULT WITH DVM NO. aTW 4.403 41X5' OPENNING EDi6 1 AZUSA xis 03 ��- i:xari LIGHT 8 WATER OF OAT6 032 7 1/2" 66' 84' 98 1/2' - 120' 72' 6 32 1/2- 132* /2' n n 132' 150'OYEWd1 - 84' Y NOTE: I. VAULT SHALL BE JENSEN PRECAST OR EQUIVALENT PART NUMBER K610—DV84-31. I ELECTRIC STANDARD 1 oAv 6' x 10' x 7' VAULT WITH N0. DAMS 4-24.0 4'x5' OPENNING AZUSA .� � [ED17 of 1 LIGHT B WATER CATs 033 ® g 9' 9' 16 b 1 � 6 11 60' o i ® 13' y. 9' 7' 49' 84' Ci 98' J/144" 72' 49' / 5 Q O 5- 17' 154' NOTE: I. VAULT SHALL BE JENSEN PRECAST OR EQUIVALENT PART NUMBER K612-FV84-31. ELECTRIC STANDARD 6' x 12' x 7' VAULT WITH orally 4'xV OPENNING ED1S AZUSA ""°� LIGHT 6 WATER �C111.6i Ilii �� 034 I Enclosure Prod ♦ = 24' MIN. _ ALSO SEE NOTE 7 TYPICAL 4'6' BOLLARD TO BE Max. 'I GALVANIZED STEEL PIPE (I/4' MINIMUM WALL) FILLED WITH PLAN VIEW CONCRETE 30' SEE NOTE 6 ALSO GRADE t; CONCRETE ENCASEMENT 30' ' •A BOLLARD DETAIL NOTES: I. STRUCTURES/EQUIPMENT WILL NORMALLY BE INSTALLED ONLY IN NONTRAFFIC AREAS. BOLLARDS TO ' BE USED WHERE ABOVE GROUND EQUIPMENT IS EXPOSED TO VEHICULAR TRAFFIC. ' 2. TOP OF BOLLARDS TO BE SMOOTH CUT AND TOP EDGES TO BE ROUNDED. 3. ONE BOLLARD TO BE REMOVABLE WHEN OVERHEAD OBSTACLES PREVENT EQUIPMENT REMOVAL BY CRANE. 4. ADEQUATE CLEARANCE MUST BE PROVIDED FOR DOORS, COOLING COILS, ETC. 5. BOLLARDS, AS SHOWN, INDICATE TYPICAL REQUIREMENTS. FIELD CONDITIONS WILL NECESSITATE - CHANGES FOR ADEQUATE EQUIPMENT PROTECTION. APPROVAL FROM THE ASSIGNED INSPECTOR IN THE ° FIELD IS REQUIRED FOR ALL BOLLARDS INSTALLATIONS. 6. WHEN SPECIFIED ON WORKING DRAWING, A 6' (MINIMUM HEIGHT) CURB MAY BE INSTALLED IN PLACE OF BOLLARDS. THIS CURB MUST BE AT LEAST 6' THICK AND ITS FRONT FACE LOCATED 60' MINIMUM (OR AS SPECIFIED ON DRAWING) FROM THE EQUIPMENT FOUNDATION. 7. INCREASE TO 44' MINIMUM AT FRONT OF PADMOUNTED 3 PHASE TRANSFORMERS AND CAPACITORS, I AND 36' MINIMUM AT BACK OF CAPACITORS (DOOR SIDES ONLY), WHEN A 6'x8' PAD IS BEING INSTALLED. ' ELECTRIC STANDARD oIPI,.N, Nv PROTECTIVE BOLLARDS ,AT„ 444,, FOR PAM OUNT EQUIPMENT ED18 EU AZUSA �, Nil �,or 1 LIGHT C WATER 035 Mast Arm Length 6' for streets < 80' wide 8' for streets > 80' wide 6" octagonal General Electric CAT # M2ARIOSOH2AMS31 COMPLETE WITH 10OW HPS OR CAT # MDRL25SOM22RMS32 COMPLETE WITH HPS 250W Mounting Height t 30'8" Pole Length t 28'3" Ameron CAT # 1C1-28F6 (or equal) Symmetrically tapered, concrete wash out gray colored octagonal, prestressed concrete pole, straight shaft. Tamper—resistont handhole cover 3' grade �I Anc—hor bolts �� 1"x36"x4" �y J BOLT CIRCLE l�J`� 12.5" 14" (1C1-40) ELECTRIC STANDARD °"' STREET LIGHT DAM AZUSA .e"M Kra . NOVA s-8-d3 LIGHT & WATER i 036 i 1 B4 78' 88' OVERALL 78' OVERALL ® i 12' SEE NOTES /. 3p o 8' ep t 9' B 7r F V DR- B q q 14. 88' 3(1' Olil El'DRAFT f ,•CRAFT SIF. 7B' L 1' DRAFT PLAN VIEW NOTE: I. VAULT NECK AND COVER SHALL BE JENSEN PRECAST OR EQUIVALENT PART NUMBER K45-VN12-31T. ELECTRIC STANDARD �R.1.Fb W x 5' TRAFFIC VAULT NECK WITH CONCRETE COVER L;D;ilAZUSA KM LIGHT 9 WATER 037 NOTE: The following requirements are for single family home service or service with ampere rating up to 200 amperes. For service with ampere rating larger than 200 Amp,contact Azusa Light&Water Engineering department for the requirements. Meter Panel Location • All locations are subject to approval by Azusa Light and Water Department representative • Meter panel must be installed outside,and nearest to the power lines • Meter panel must not be enclosed or fenced in and must be accessible to Azusa Light&Water Department personnel. • Meter panel shall be installed at a 48"minimum to 75"maximum of clearance from finished grade(5 feet is preferred) I Overhead Services ' • Service mast conduit shall be straight rigid steel without couplings • Service mast conduit shall be minimum of 1 Y.inch in diameter for 100 Amp and 1 Ya inch in diameter for 200 Amp service • Service mast conduit shall be installed with a clearance of 24"minimum to 30"maximum above roof. Any conduit extending I 30"above roof will require a back brace or guy support • Service mast conduit shall have a minimum of two(2)supports(strap or unistrut)between meter panel and roof. • A rain shed collar and(lashing must be installed and weather proofed between the roof surface and the mast conduit • Electrical contractor is responsible to install service entrance conductors and leave minimum 18"length of it exposed at the end of weatherhead to allow Azusa Light&Water to connect the service line to the service entrance conductor - Underground Services • Contact Azusa Light&Water engineering office to determine point of service - • 3 inch minimum is the conduit requirement. Exposed above grade conduit must be rigid galvanized steel '- • Maximum of three 90 degree bends is allowed in a run from point of service to meter panel - • If secondary handhole is not readily available,applicant or his contractor is required to furnish and install riser pole conduit plus handhole per Azusa Light&Water specifications. • Applicant or his contractor is responsible to install service entrance conductors frompoint of connection(usually at handhole; to service panel i General Notes - • Property owner and electrical conlractorare responsible for arranging a meter spot from the Light&Water Department,they obtain duly approved permits and arrange inspection with City's building and safety inspector • The City of Azusa Light Department will furnish and install the service wire,the service wire mounting bracket and the meter. upon completion of City inspection. Contact • Azusa Light&Water Department(for meter soot and method of service): customer service: (626)812-5225 Engineering: (626)812-5172 • City Building&Safety Department(for electrical permit and inspection): (626)812-5234 1 ELECTRIC STANE0AREP Li ar RESIDENTIAL METER PANEL nNO.a0.200 AMPERES MAXIMUMED22••1.� INSTALLATI REQUIREMENTSAZUSA LIGHT 6 WATER 1 or y - 038 WATER STANDARDS AZUSA LIGHT & WATER CITY OF AZUSA LIGHT & WATER DEPARTMENT f U Chet AndesJosDtDoor t-Wtaetse r Operations May, 2003 STANDARDDESCRIPTION DATEISSUED W-1 3/4" x 1" OR 1" SERVICE ASSEMBLY MAY 14, 2001 W-2 2" WATER SERVICE ASSEMBLY MAY 14, 2001 W-3.1 3" & 4" METERS WITH 2' BY—PASS MAY 14, 2001 W-3.2 3' & 4" METERS WITH 2" BY—PASS MAY 14, 2001 W-4.1 6' & 8" METERS WITH BY—PASS MAY 14. 2001 W-4.2 6' & 8" METERS WITH BY—PASS MAY 14, 2001 W-5 STANDARD SERVICE CLAMP REOUIREMENTS MAY 14, 2001 W-6 TYPICAL TRENCH DETAIL MAY 14, 2001 W-7.1 THRUST BLOCKS MAY 14, 2001 W-7.2 THRUST BLOCKS - MAY 14, 2001 W-8 PIPE SUPPORT - MAY 14, 2001 W-9 PIPE CONCRETE ENCASEMENT MAY 14, 2001 W-10 VALVE ASSEMBLY, BOX, COVER MAY 14, 2001 IDENTIFICATION AND VALVE STEM EXTENSION W-11.1 FIRE HYDRANT ASSEMBLY MAY 14, 2001 W-11.2 LOCATION OF ABOVE GROUND UTILITIES MAY 14, 2001 W-12 FIXED POST BARRIER MAY 14, 2001 W-13 2" BLOW—OFF ASSEMBLY MAY 14, 2001 CLASS 200 W-14 AIR & VACUUM ASSEMBLY (1' & 27 MAY 14, 2001 W-15.1 BACKFLOW PREVENTION ASSEMBLY MAY 14, 2001 DOUBLE CHECK VALVE W-15.2 BACKFLOW PREVENTION ASSEMBLY MAY 14, 2001 REDUCED PRESSURE PRINCIPLE W-15.3 BACKFLOW PREVENTION ASSEMBLY MAY 14, 2001 GENERAL INSTALLATION W-16.1 WATER AND SEWER SEPARATION MAY 14, 2001 W-16.2 WATER AND SEWER SEPARATION MAY 14, 2001 WATE ■g STAN aAR� II �� �� LAST OR STANDARDS owaMo. owre, w.cs-zaai W - 0 AZUSA SCALE, o S 3 O Ob, aKa 07,01 , OF LIGHT 6 WATER �TyytpO Tm.W.MO T� RCE NO. O/aTE 040 B 6 TOPOF METER BO% SLO1/4'PE PKWY TOP OF CURB FACE OF CURB y a 4. 7 3 4 5 BY OTHERS COPPER SERVICE SHALL NOT EXTEND OVER 3' ABOVE TOP OF WATER MAN . C.I.. DUCTILE IRON, SR.. BEND TUBING TO PROVIDE OR C.M.L & C. PIPE FOR SLACK 1 R - 12' MIN. -� WHEN P.V.C. PIPE IS USED. A COPPER TRACER ` WIRE SHALL BE INSTALLED. ON STL PIPE PROVIDE EXTRA— WHEN P.V.C. PIPE IS USED, A BRASS SADDLE WITH STRONG THREADED COUPLING DOUBLE STAINLESS STEEL STRAPS SHALL BE USED. WELDED TO MAN /t6 WHEN DUCTILE IRON OR CAST IRON PIPE IS USED, WORKING PRESSURE tsn P cl A DOUBLE STRAP BRASS SADDLE SHALL BE USED. MAXIML1O CORPORATION STOP,FORD F 1000-4G, JONES N0. J-3401SG, A.Y. McDONALD 4701T TAPPING THREAD ON DUCTILE IRON. COMPRESSION JOINT OR STAB JOINT (NOT FLARED) I ' INLET MAF IRON PIPE THREAD O 1' COPPER SERVICE TURlb& TYPE "K- — SOFT }� ANGIE METER STOP WITH LOCKWING (1' x 1').FORD KV43-444WG, JONES NO. J-4201SG, A.Y. McDONALD 4602T COMPRESSION OR STAB JOINT (NOT FLARED). 4Q METER (3/4* x 1' OR 1' : 19 (BY COY). O 1' aAII VAIVIE WITH LEVER H 4 E SWIVEL NLIr AND IPT TARRED END FORD MOD. B-13-444W-HB-34S, JONES NO. J-19OB-MUn' H-14345. AY. MCDONALD G101MW.. .© coNC METER BOX AND COVER. BROOKS NO. 37-S OR APPROVED EOLIAL 7QMETERADAPTER.FORD A-34 (3/4- METER ONLY). JONES NO. J-128H (1 1/4' % 17 8Q GI COQ REQUIRED WHERE SUBJECT TO HIGH EXTERNAL LOADS WA-irEN STANDARD Cwwxl rfM°x Bu OW&NO. 3/4" x 1" OR i" SERVICE ASSEMBLY W - DATE: a.-rimoi ENEET AZUSA 40330 06/07/01 .' « y TIGHT 8 WATER wtn oorE 041 i 7 6 TOP OF METER BOX SLOPE PKWY TOP OF CURB FACE OF CURB 4' O 3 4 5 BY OTHERS ///-Cl. DUCTILE IRON STL BEND TUBING TO PROVIDE OR C.M.L. @ C. PIPE FOR SLACK I/ j/lrELDED R 12' MIN. 2WHEN P.V.C. PIPE IS USED, A COPPER TRACER WIRE SHALL BE INSTALLED. ST STG PIPE DED CO EXTRA— (WHEN P.V.C. PIPE IS USED, A BRASS SADDLE WITH STRONG THREADED COUPLING DOUBLE STAINLESS STEEL STRAPS SHALL BE USED. TO MAIN OR SERVICE SADDLE. WHEN DUCTILE fRON OR GIST IRON PIPE IS USED. j A DOUBLE STRAP BRASS SADDLE SFWl BE USED. MAXIMUM WORKING PRESSURE 150 P.S.1. ' tO 2' CORPORATION STOP. FORD FD 1000-7G. JONES NO. J-1937SC. A.Y. McDONALD 470101' COMPRESSION JOINT • INLET MALE IRON PIPE THREAD 2Q 2' COPPER SERVICE TURING.TYPE "K' — SOFT 3Q ANGLE METER STOP WITH I OCKWING 12 x 2'1FORD FV43-777WG, JONES NO. J-1975—WSC. A.Y. McDONALD 460201' COMPRESSION JOINT O METER (Z-) YBY CTM. O 2' RAI I VALVE Wf111 LEVER HANG F SWIVEL NUT AND LP.T, TAPPED ENO.FORD SF13-777W-HS-4. .JONES NO. J-1913W. A.Y. McDONAD 61D1MW OR APPROVED EOUAI. _ ©CONC. METER BOX AND COVER, BROOKS NO. 65—S OR APPROVED EQUAL 0 C-1- COVER REO IREO WHERE SII JECT TO HIGH EXTERNAI LOADS NOTE USE JONES NO. J-2102 TAPPING ADAPTER FOR MUEIIER MACHINE D-4. WATER STANDARD RRAVEw N4WEM1 BU OW6.N0. 2= WATER SERVICE ASSEMBLY 1uTse a-os-zaal ,[` W 2 ' AZUSA .�.... q5 q,,,M, ,+�.E ^[; 4 0 3 3 0 06,07,01 y';y - LIGHT 8 WATER /SS4ERIf]I[Crpp.giFq 6FR1TICl6 RCE NO. PATE 042 I I I I . -6" .. 1'-3" OF . a j 1 t MIN. 1 13 11 8 —FLOW—' TO WATER TO — MAIN CUSTOMER _ 3 IN. 4 Z 7 T MI 11 [MSETER ,Q, IZE F3' 1'-7' 4' 1'-11' CONSTRUCTION NOTES: Ot 3" METER, SENSUS W-350 DR-T.R. \NEPTUNE H.P. TURBINE - ARB W i 4" METER, SENSUS -1000 DR-T.R. NEPTUNE M.P. TURBINE - ARB i METERS SHALL BE SUPPLIED WITH STRAINER Q2 FLANGED ADAPTER, ROMAC, FCA 501, CL 150, OAC Q FLANGED SPOOL, D.I. PIPE CLASS 53 i Q FLANGE x PLAIN END SPOOL, D.I. PIPE CLASS 53 QS GATE VALVE, CL 150 w/ VALVE BOX ASSEMBLY PER STD. DWG. W-2 © GATE VALVE. CL 150 w/ HANDWHEEL I O7 PIPE SUPPORT PER STI. DWG. W-14 ® 2 1/2" HALF COUPLING, NIPPLE, BALL VALVE AND JAMES JONES EXTENSION ON NIPPLE J-341 WITH J-669 CAP AND CHAIN (2) PRECAST VAULT - 3" & 4" METER - 4'x5' QUIKSET SERIES 3100 OO 2" BALL VALVE, COMPRESSIONxF.I.P. w/ LOCK WINGS FORD B41-777WG, JONES NO. J-1921WSG, A.Y. McDONALD 6102WT. tQ DOUBLE STRAP SERVICE SADDLE w/ 2" OUTLET © 2" 90', COMPRESSION ® 2" CORP. STOP, M.I.P.xCOMPRESSION © 2" VALVE, COMPRESSIONxM.1.P. ® 2" M.I.P.xN.F.T. ADAPTER © 2" COMPRESSIONxN.F.T. ADAPTER © 2" TYPE "M' COPPER * OAE = OR APPROVED EQUAL i- r WA-11"'ER STAN �AR� onAww DwG Iw. 3. 8x 4' METERS WITH 2" BY-PASS W - 0 DATE, Oc-oS-zoos AZUSA SCAMes s,grn, `"EEE wsaoxc ,kN-�y.nM�.� m o s s o 0e107i011 or 2 TIGHT 6 WATER ` Masrprt o,Eczon-Me*FPvwTUA rxCE HO. Oa.TE i 043 I i . i i I I i UNLESS OTHERWISE SPECIFIED ON PLANS OR CALLED FOR IN THE SPECIFICATIONS, 1. ANY CHANGES TO STANDARD MUST BE APPROVED BY WATER DIVISION.INSPECTOR. 2. PLACE AN APPROVED FLEXIBLE PACKING AROUND PIPE PENETRATIONS. I 3. ALL VAULTS SHALL BE EQUIPPED WITH A PRECAST CONCRETE FLOOR, I SUMP WITH GRATE AND 1 C.Y. OF 3/4" GRAVEL BELOW SUMP. i 4. THE COVER SHALL HAVE AT LEAST 2 PLATES WITH HANDLES AND BOLT DOWN FEATURES AND SHALL BE "E" STYLE AS MANUFACTURED BY QUIKSET. THE COVER SHALL BE DESIGNED FOR TRAFFIC LOADING IF LOCATED IN AN AREA WITH TRAFFIC ACCESS. j SUPPORT BEAMS SHALL BE REMOVABLE. METER READING LIDS SHALL BE PROVIDED CENTERED OVER THE METER REGISTER. EACH READING UD SHALL BE FLUSH MOUNT, RECTANGULAR IN SHAPE AND HINGED. 5. ALL BOLTS SHALL BE TYPE 304 STAINLESS STEEL. 6. GATE VALVES 2" IN SIZE AND LARGER SHALL BE RESIDENT WEDGE GATE VALVES PER AWWA C509. ALL 3" VALVES AND LARGER WHICH ARE LOCATED INSIDE THE VAULT I SHALL BE EQUIPPED WITH A HANDWHEEL. - I 7. METER VAULTS SHALL BE CONSTRUCTED ON 6" OF SAND OR PEA GRAVEL. I i i WATER STANDARD 3. & 4- METERS WITH 20 BY-PASS ozz�xo D1TCI a.-os-zoos �� $ AZUSASCAM SIM��o - ».moo �. 9 . �03So G�,G�,oI 20.2 LIGHT B WATER w -1Y ti DOTE I 044 I 1 2 4 r 1 •1'..1 w METER "a- I 7 7 SIZE 3 I 1-6" 1 -3" 0 V-6. 3 6" IR I I � 8N 9 IN5 •" � 6 6 ' I FLOW TO L I TO WATER j CUSTOMER "1,. . , MAIN 4 2 8 1 I 1 3 3 It OF CONSTRUCTION NOTES: VAULT O1 6" METER, SENSUS W-2000 DR-T.R. \ NEPTUNE H.P. TURBINE - ARB 8" METER, SENSUS W-3500 DR-T.R. \ NEPTUNE H.P. TURBINE - ARB METERS SHALL BE SUPPLIED WITH STRAINER Q2 FLANGED ADAPTER, ROMAC, FCA 501, CL. 150, OA£ (TYP. OF 2) Q3 FLANGED SPOOL, D.I. PIPE CLASS 350 ® FLANGE z PLAIN END SPOOL, 0.1. PIPE CLASS 350 �- OS GATE VALVE, CL. 150 (TYP. OF 4) I © FLANGED TEE w/ REDUCED OUTLET (TYP. OF 2) i O7 90' L.R. FLANGED ELBOW (TYP. OF 2) ® PIPE SUPPORT PER STD. DWG. W-14 A 9Q 2" DOUBLE STRAP SERVICE SADDLE, NIPPLE, BALL VALVE AND JAMES JONES EXTENSION ON NIPPLE J-341 WITH J-669 CAP AND CHAIN ® PRECAST VAULT - 4k5 QUIKSEF SERIES 3100 1� THRUST BLOCK PER STD. OWG. W-6 . OAE = OR APPROVED EQUAL i WA'1rER STAN �AR� 0PAWN, Gn & 8' METERS WITH BY-PASS W — 4 oAM K-0l-zoos AZUSA fo•...154gerw wwenw.¢ �.T"'R� 4 0 3 30 00107,01 -1 2 j LIGHT B WATER 1631$'YR OREL}yl.tllFAffD11MI6 RCE NO. pYTE 045 f UNLESS OTHERWISE SPECIFIED ON PLANS OR CALLED FOR IN THE SPECIFICATIONS: 1. ANY CHANGES TO STANDARD MUST BE APPROVED BY WATER DIVISION INSPECTOR. 2. PLACE AN APPROVED FLEXIBLE PACKING AROUND PIPE PENETRATIONS. 3. ALL VAULTS SHALL BE EQUIPPED WITH A PRECAST CONCRETE FLOOR, SUMP WITH GRATE AND 1 C.Y. OF 3/4" GRAVEL BELOW SUMP. 4. THE COVER SHALL HAVE AT LEAST 2 PLATES WITH HANDLES AND BOLT DOWN FEATURES AND SHALL BE "E" STYLE AS MANUFACTURED BY OUIKSET. THE COVER SHALL RE— DESIGNED FOR TRAFFIC LOADING IF LOCATED IN AN AREA WITH TRAFFIC ACCESS. SUPPORT BEAMS SHALL BE REMOVABLE. METER READING UDS SHALL BE PROVIDED CENTERED OVER THE METER REGISTER. EACH READING LID SHALL BE FLUSH MOUNT, RECTANGULAR IN SHAPE AND HINGED. 5. ALL BOLTS SHALL BE TYPE 304 STAINLESS STEEL. 6. GATE VALVES 2" IN SIZE AND LARGER SHALL BE RESILIENT WEDGE GATE VALVES PER AWWA C509. 7. EACH SIZE METER SHALL HAVE THE FOLLOWING BY—PASS PIPING SIZE: 6" METER = 4" BY—PASS 8" METER = 6" BY—PASS 8. METER VAULTS SHALL BE CONSTRUCTED ON 6" OF SAND OR PEA GRAVEL. 9. MECHANICAL JOINTS MAY BE USED INSTEAD OF. FLANGED JOINTS. WATER STANDARD oµ w ea 6" & 8" METERS WITH BY-PASS nNo wo DAM oca5-zoos 1 �r w � 4' AZUSA .00 C.LE. 443n0rm ..ew.mC}�`� F. -- 4 0 S S 0 06,0„01 LIGHT 9 WATER /yy51y�}p@E�Tpp.Mp�p gflyi"y RCE HO. pYTE 046 PIPE PIPE CLAMP REQUIRED FOR VARIOUS CORPORATION STOP SIZES SIZE TYPE 3/4" 1" 1 1/4" 1 1/2" 2" 6" C.I. NONE NONE DOUBLE DOUBLE DOUBLE 6" C.C. NONE NONE SB-362 SB-362 SB-362 8" C.I. NONE NONE DOUBLE DOUBLE DOUBLE 8" C.C. NONE NONE SS-362 WB-362 WB-362 10" C.I. NONE NONE DOUBLE DOUBLE DOUBLE 10" C.C. NONE NONE SB-362 SB-362 SB-362 12" C.I. NONE NONE DOUBLE DOUBLE DOUBLE 12" C.C. SB-363 SB-363 SB-363 SS-363 SS-363 14" C.I. NONE NONE DOUBLE DOUBLE DOUBLE 14" C.C. SS-363 SS-363 SB-363 SB-363 SB-363 16" C.I. NONE NONE DOUBLE DOUBLE DOUBLE 16" C.C. SB-363 SB-363 SB-363 SB-363 SB-363 18" C.I. DOUBLE DOUBLE DOUBLE DOUBLE DOUBLE 18" C.C. SB-363 SB-363 SB-363 SS-363 SS-363 24" C.I. DOUBLE DOUBLE DOUBLE DOUBLE DOUBLE 24" C.C. SB-363 SB-363 SB-363 SS-363 SB-363 LEGEND: C.I. - CAST-IRON PIPE C.C. - CONCRETE-CYLINDER PIPE S.B. - SMITH BLAIR Co. OR APPROVED EQUAL WATER STANDARD muwle •eu STAN®ARD SERVICE CLAMP No. REQUIREMENTSW _ 5 017E a-m-Zoog AZUSA �.,�, yq ygw[o-\7V 1J1 4 0 3 3 0 06/07/01 y y LIGHT B WATER 047 SAWCUT EDGE OF TRENCH CONSTRUCT A.C. 1" MIN. THICKER THAN EXISTING A.C. EXIST. A.C. OVER C.A.B. (THICKNESS VARIES) 95% COMPACTED AGGREGATE BASE NO AGGREGATE OVER 3/4" IN DIAMETER. IMPORT MATERIAL ONLY COMPACTED TO 90% OF ;r.�� . �• z THE RELATIVE DENSITY '•'s•,• �� (SEE SPECIFICATIONS) 4 x BEDDING-do BACKFILL SHALL BE FREE DRAINING GRANULAR MATERIAL HAVING wo A SAND EQUIVALENT OF NOT LESS THAN :w ; 30 AND SHALL BE COMPACTED TO 90% s z RELATIVE DENSITY BY WATER DENSIFICATION METHODS "''} ='• NO FLOODING ALLOWED. h, D.I.P., CL. 350 RENCH WIDTH ( SEE CHART BELOW PIPE SIZE 4" 1 6" 1 8" 1 10" 12" 16" 20" 24" 30" MAXIMUM ALLOWED 1 20" 20" 20" 22" 24" 28" 32" 36" 42" TRENCH WIDTH • NOTE: DEPTH OF COVER SHALL BE 36" ON RESIDENTIAL STREETS. DEPTH OF COVER SHALL BE 42" ON ARTERIAL STREETS. WA7�E�i STANNAR� DIYiHI N;WO+BU OIM4.N0. TYPICAL TRENCH IDETAIL SAM a.-Os l W - 0 AZUSA Ir. PVI'6kx 0330 06/0]/01 smSCA " p LIGHT 6 WATER lump,£ vt RCE No. MY o 048 1 CONSTRUCT THRUST THRUST SYMMETRICAL BEARING AROUND PIPE BEARING C �� AREA AREA \\' v 12" MIN. / 8" MIN THRUST BEND TEE OR PLUG REDUCER BEARING PLAN PLAN PLAN AREA . i THRUST 4 BARS CONCRETE BEARING THRUST AREA — BLOCK _ (TYP.) ` HOOK ENDS \ ••' ' 1 6" MIN. .� VERTICAL BEND CROSS WITH VALVE 2 — #4 REBAR PLAN • CONCRETE THRUST BLOCK SECTION 1 I WATE�i STAN �A;Rd Dmvnb Kcv eu ora,RD. T H IR U S T B L O C K S W - "7 DAM ". -Ml AZUSA .DAtLs49Kmm ..,mo- sneer i ,}�jr�g�a. o > > o oaio�ioi 7 a 2 1 LIGHT a WATER �rnsr •r aiEu� Ac No. otarE i 049 i THRUST BEARING AREA (SQUARE FEET) 2 - t6 BARS ARoueo vuvE PIPE SIZE s' s' 10' tz' TEST PRESSURE (PSI) 150 150 150 150 t 90' 4.0 7.1 11.1 16.0 0 45' 2.2 3.8 6.0 8.7 m 22S 20 2.0 3.1 4.4 1.25 20 2.0 2.0 2.2 PWG 5.7 10.1 15.7 22.6 T"ALVE 2.8 5.0 7.9 11.3 .••• CROSS • 2.8 &0 7.9 11.3 REDUCER 2.0 4.0 7.0 10.0 I •WITH A VALVE THRUST L BFARNG TABLE(S) BASED ON SOIL BEARING VALUE AREA VALVE OF 1500 Ib. PER SQUARE FOOT. CALCULATIONS MUST BE SUBMITTED FOR - OTHER SOIL BEARING VALUES OR OTHER TEST PRESSURE IN WATER MAIN. JA RESILIENT WEDGE GATE VALVE ' VERTICAL ANCHOR (CUBIC FEET OF P.C.C.) ,.,,•' ,..., PIPE SIZE 6' 8" 10" 150 1- •, 1TEST PRESSURE (PSI) 150 150 150ISO 150 L 90' 62 111 173 249 4S 44 78 122 176 /6 RDNFORCINC m 22.5 24 42 66 95 W BAR 11.251 12 1 22 1 34 49 SECTION 2 NOTES: 1. THRUST BLOCKS MUST BEM ON UNDISTURBED SOIL 2 CONCRETE FOR THRUST & ANCHOR BLOCKS SHALL VALVE AND (y0 m BE OF CLASS 480-0-2000 IN ACCORDANCE WITH (L) S.S.P.W.C. R SMALL BE POURED (12" THICK MIN.) PIPE SIZE LENGTH WIDTH THICKNESS AGAINST UNDISTURBED SOIL P.C.C. SHALL BE KEPT 6' 2' 2•-0' 12• CLEAR OF PIPE & BELL OF THE FITTINGS. ! 8' 3• 2•-2' 14' 3, WHEN MECHANICAL JOINTS ARE UTIUZED, SET FORMS 10' 3• 2•-4' 14' M SEPARATE BOLTS FROM P.C.C. TO ASSURE ACCESS 12' 4' 1 2•-6' 15' 10 BOLTS & JOINTS. { 4 WATEY� STANQAR� oluww rqur.+�eu o>ra.■o. IH R U S T B L O C KS W 7 LIGHT �, ,� „., ��' , `� R 40330 30 p4TE 1 2� 050 1 NOTE: PIPE SUPPORTS TO BE LOCATED IN PLAN AT POINTS MARKED THUS: X OR AS SHOWN. SET ROD COUPLERS PLUMB AND FLUSH WITH CONCRETE. ' i i i p 0. 6. ----- XPANSIOfJFJOINT� p ': I FlFlLLLLEERR � 931• � III 1 4-31/4' GALV. - 3/8' P/L U 3�')RAD 1_1/2• 41 1 CONCRETE i i �• ICER C 6 (TYP t—a 4• A BOLTS DIMENSIONS IN INCHES NOMINAL SUPPORTING SUPPORTING SIZE PIPE PIPE OR FLANGE PIPE FLANGE C D E A. B A B 6 2 4 12 10 16 10 16 8 & 10 2 4 12 10 16 14 20 12 & 14 2 4 - 12 12 18 16 22 16 & 18 2 4 12 14 20 20 26 20 & 22 3 5 12 16 22 22 28 24 3 5 12 18 24 24 30 GALVANRE AFTER FABRICATION NOTE: WHEN SUPPORTING ON THE SAME UNE ALTERNATIVELY PIPE AND FLANGE, CONCRETE PIERS FOR PIPE SUPPORTS SHALL ALL HAVE THE SAME DIMENSION B (FOR FLANGE SUPPORT). i WATER STA�< �ARN=10 oRArxl HG N x31 ora.KO. PAPE S�JPPOFiT W 8 aATZI a.-os-xaoi AZUSA axaar L 0 i 3 O 06/07/01 7 a� y LIGHT & WATER AAKIMR ipi-MIFF OFIUiW6 E N DATE 051 MIN.—PIPE O.D.+12" MAX.— PIPE O.D.+20" CONSTRUCT A.C. & EXIST. A.C. TRENCH WIDTH C.A.B. PER PLANS BACKFILL o ° (SEE SPECS) _T 0 0*I , • #5 CONTINUOUS 6" AS SHOWN PIPE TO BE ENCASED #4 TIES ® 24" I � 6" 3,000 PSI CONCRETE '6� (MIN.) NOTES: 1. THE LENGTH OF THE ENCASEMENT SHALL BE AS SHOWN ON THE CONTRACT DRAWINGS. 2. PERPENDICULAR CROSSINGS OF WATER AND SEWER PIPELINES SHALL BE PER CALIFORNIA DEPT. OF HEALTH SERVICES, "CRITERIA FOR THE SEPARATION OF WATER MAINS AND SANITARY SEWERS 3. VCP SEWER PIPE SHALL BE WRAPPED WITH POLYETHYLENE MATERIAL PRIOR TO BEING ENCASED IN CONCRETE. WATER STANI�AFl� 0wwri muc«eu PIPE CONCRETE ENCASEMENT DAM I AZUSA {3 r6.6t— 6 O 3 3 O Ob/O,,OI LIGHT 8 WATER �q!Siprt OfECf01•YYi81 tlFMiglb RCE NO. GATE 052- ALHAMBRA FOUNDRY NO. A-29608 (8') NO. A-29612 (127tPLAN CAST IN PLACE CONCRETE CAST IRON VALVE BOX COVERRING 20" DIAM. PAINTED LIGHT BLUESTREET OR FINISHED SURFACE Z X d' GALVANIZED SLIP CAN N p ZO W 7 f2"x Y47S0LID DISK, p Z X^ TACK WELD TO 2" SO. OPERATING NUT, w z i SHAFT EXTENSION c �c O XW WJU w emu PLAN a o o N VALVE STEM EXTENSION, w n 8" PVC, CL 900 / CENTER AND RPLUMBIx - ASPHALT OR COAL-TAR DIPPED OVER OPERATING NUT ADAPT TO OPERATING NUT ON VALVE FASTEN W/PIN I 2"x6"x12" REDWOOD BLOCKS a' WHERE SLOPE OF WATER MAIN EXCEEDS 1%. INSTALL FLANGES VALVE �o WITH HALF CIRCLE IN VERTICAL THRUST BLOCK PERwinHZ POSITION AS SHOWN. STD. DWG. No. W-6 CO A •� B'Q M MMMZx swmo ora ate taJO • W •• MAINLINE IN �: zjWw STL. PIPE TEE CONNECTION STEEL COLLAR ON I 00 maaw TO EXISTING PIPE Sn, WATER MAINS ELEVATION SECTION A-A WATER S.TANCIAF;� DRAWN, VALVE ASSEMBLY, BOX, COVER °�'1O• IDENTIFICATION AND VALVE STEM EXTENSION w - 10 owls M. -zoos 1 AZUSA tC/LLit.59Wwn 7vJ1 F T c' 4 0 0=04.1.07101 1 LIGNT fl WATER 1A61�rrt ova[rw�p�pBu�04 A0e I 1 053 WATER MAIN HYDRANT VARIES 28" (TYP.) I 1 o3 I � I ' & I p BREAK—OFF BOLTS w kSPRAL 0 w T PANNG I THRUST BLOCK FI STANDARD W-6 S 6 4 2 I 7 3 THRUST BLOCK PER - STANDARD W-6 Ql 6" SOLID BRONZE HEAD 2-1/2" AND 4" OUTLET, JONES NO. J-3700 (EASTBAY TYPE) OR EQUAL — IN COMMERCIAL & INDUSTRIAL AREA USE JONES NO. J-3765. PAINT THE EXTERIOR w/ (2) COATS OF RED PRIMER, RUST—OLEUM NO. 769 AND FINISH w/ ONE COAT OF YELLOW, RUST—OLEUM NO. 659. 02 6" FLANGE X M.J. BURY ELBOW, 6H. O3 6" DUCTILE IRON PIPE, CLASS 350. ® 6" GATE VALVE — FLANGE X M.J., MUELLER A-2360-16 AFC 500, GAE. O STEEL PIPE AND SUP JOINT BOX ASSEMBLY, PER STD. DWG. W-2. © 6" FLANGED OUTLET ON TEE Q TAPPING SLEEVE FOR D.I.: ROMAC SST WITH D.I. FLANGE, OAE. TAPPING SLEEVE FOR STEEL: WELD ON NOZZLE WITH REINFORCEMENT PLATE. NOTES: 1. FIRE HYDRANTS INSTALLED ALONG STREETS OR ROADS WITHOUT CURBS SHALL BE PROTECTED WITH GUARD POSTS PER STANDARD DRAWING W-11. 2. MAXIMUM 150 psi WATER WORKING PRESSURE i i WATER STAN �A�� 'i ORAwmr N OWO.NO. FIRE HYDRANT ASSEMBLY DAM saw AZUSA *Cam P`]wtia � .A��- L 0 3 3 0 0W07i01 lsos 2 LIGHT 8 WATER 1. ITM y T E NO. GATE" I 054 i LOCATION OF ABOVE-GROUND UTILITIES WHERE SIDEWALKS ARE ADJACENT TO THE CURB ; WHEN SIDEWALKS ARE CONSTRUCTED ADJACENT TO THE CURB, ABOVE GROUND UTILITIES, INCLUDING AIR AND VACUUM VALVES. FIRE HYDRANTS, BLOW-OFFS, METER BOXES, ETC. SHALL BE LOCATED AS FOLLOWS: I 6' 5' 12 WHEN 5FT. SIDEWALKS ARE ADJACENT TO CURB. HYD— 1 RANTS SHALL BE CENTERED 6FT. FROM FACE OF CURB. METER BOXES TO BE FLUSH WITH BACK OF SIDEWALK. r: 6' OR GREATER- 28" TYP. WHEN SI!THAN6FT. S ARE CONSTRUCTED WITH WIDTHS GREATER FROM CURB FACE TO OUTSIDE EDGE OFALK, HYDRANTS SHALL BE PLACED IN THE NORLOCATION 28 IN. FROM THE CURB FACE. n 1f: 4' OR GREATER 28" WHEN SIDEWALKS ARE CONSTRUCTED BACK FROM ' CURB, 4. OR GREATER HYDRANT SHALL BE PLACED - 1 IN THE NORMAL LOCATION 28 IN. FROM CURB FACE. ' 28` WHEN INVERTED SHOULDER SECTION IS PERMITTED AND CURB, GUTTER AND SIDEWALK ARE WANED, THE HYDRANTS SHALL BE CENTERED 28 IN. BEHIND THE EDGE OF THE PAVEMENT. I i WATER STAN ���� I ewa.wo. DMWiI.cwe,ew LOCATION OF ABOVE GROUND UTILITIES W y y DATLO w.-o5-looi AZUSA 4N k� � t O 3 3 0 GATE' i11EET 2 W 2 LIGHT 6 WATER 055 4" GALV. STEEL PIPE, 1/4"WALL '(MIN.) FILLED w/ NON-SHRINK GROUT CROWN CONCRETE BASE AT THE TOP TO SHED WATER FINISHED GRADE I :f c 16"m PCC FOOTING NOTES: 1. PAINT THE PIPE BARRIERS YELLOW. POSITION POSTS 2' IN FRONT OF AND 2.5' EACH SIDE OF UTILITY. 2. A MINIMUM OF TWO BARRIERS SHALL BE INSTALLED IN FRONT ! OF ABOVE GRADE WATER FACILMES IF NO CURB EXISTS. FOUR BARRIERS SHALL BE USED IF TRAFFIC CAN ACCESS FACILRIES FROM ALL SIDES. 1 WATER STAN111111=10Af;d ! onwwM x eu owe_HIM FEWEn POST BARRIER "Tc aas-zoo. W - 12 ._.... .s sNo"n+ �aF Pt�'TWY.-- 0 3 3 0 06,07,01 .,•;'' - LIGHT 8 WATER AZUSA taLSiwt p¢Ra.WtEA atFluno6 Er+o. oATE 056 E 24'0 x 6" THICK CONC. RING 1 2 3 4 5 10 7 6 REDWOOD BLOCKS 3" SAND C.I., DUCTILE IRON, STL. 8 OR M.L. & C. PIPE 9 R = 12' MIN. 8 WHEN P.V.C. PIPE IS USED, A BRASS SADDLE WITH DOUBLE STAINLESS STEEL STRAPS SHALL BE USED. WHEN DUCTILE IRON OR CAST IRON PIPE IS USED, A DOUBLE STRAP BRASS SADDLE SHALL BE USED. NOTE MAXIMUM WORKING PRESSURE 150 P.S.I. 12" DIA PIPE AND SMALLER O1 12- C.I. VALVE BOX COVER. ALHAMBRA FOUNDRY NO. A-29612 (12') O2 2- BRASS ANGLE VALVE. JONES NO. J-380. O3 BRASS HOSE THREAD CAP w/ CHAIN, JONES NO. J-554, 2 1/2". Q MALE REDUCING NIPPLE w/ CHAIN LUG, 2" X I.P. X 2 1/2" N.S.H.T. JONES NO. J-546. Q 2' 90- BRASS ELBOW. © 2 - 2- BRASS CLOSE NIPPLES. O7 2' COPPER FEMALE ADAPTER. ® 2' COPPER TUBING, TYPE "K" - SOFT. Q9 2- CORPORATION STOP, FORD FB 1100-7G. JONES NO. J-1935, A.Y. MCDONALD 470487 COMPRESSION. QO 12. O.D. X 20- STEEL PIPE 10 GO., ASPHALT OR COAL - TAR DIPPED. V�FATEF3 �TAN �ARCs DRAWlbru+rer,.0 2" BLOW-OFF ASSEMBLY �4O° CLASS 200 W - - 3 oAm a.•mSOw taT AZUSA LIGHTS WATER s45 •>v. DOTE 057 2—STANLEY HEAVY DUTY POSITIONSMOOTH HOLES HINGES 3'x}' (WELD) NOS. O" ® EQUALLY SPACED AS SHOWN 2. 1 13 2 Q. WELD SUPPORT CALV. PLATE—/ 6'xt'x STL STRIP 3 1/4 9 11 3/8' CINCH 4 10 A.S. 3 RW 5 LIMITS OF CONC. PAD 6'x30'x30' 10 4 CONC. PAD 3/16' WHEN P.V.C. PIPE IS USED. A BRASS SADDLE WITH 6 DOUBLE STAINLESS STEEL STRAPS SHALL BE USED. WHEN DUCTILE IRON OR GST IRON PIPE IS USED, 7 A DOUBLE STRAP BRASS SADDLE SHALL BE USED. 7 SLOPE UP 8 6 2% MIN, USE MIN. RADIUS BEND (MIN. COVER 2 FT.) C.I. D.1. PIPE STfL fig' �. PIJE ASSEM. INSTALLED AT EASEMENTS. ROADS AND STREETS WITHOUT CURBS SHALL BE PROTECTED w/ GUARD POSTS PER STANDARD DWG. W-11. O 20' DIAMETER STEEL PIPE, GALVANIZE AND PAINT PER SPEC.'S. O2 2 — 90' GALVANIZED STREET ELLS. O3 COMBINATION AIR RELEASE & AIR VACUUM VALVE. CRISPIN HEAVY DUTY OR APPROVED EQUAL �4 2 — BRASS NIPPLES. I.P. THREADED. 5 BALL VALVE, PER STANDARD SPEC.'S. © COPPER FEMALE ADAPTER. O COPPER TUBING, TYPE "K" — SOFT. ® CORPORATION STOP, I' MUEII NO. H-15028, 2'—MUELLER NO. H-15023 w/ SERVICE SADDLE OR FORD FS 1100-7G, JONES NO. J-1935, A.Y. MtDONALD 4704BT COMPRESSION. 9 TEST DRAIN VALVE — 1/2' I.P.T. X 3/4' H.T., UTILRY MFG. CO. 0 3 — 3' X 3' X 1/4' GALV. ANGLES 2' WIDE w/ 1/2'0 HOLE, WELD TO PIPE ON. RIGID SIDE. 11 2 — 1 1/2' X 1 1/2' X 1/4' THICK X 2' LONG ANGLES w/ 3/8'0 HOLE, CENTER.1' FROM TOP OF PIPE ON SIDE OPPOSITE HINGE AND WELD. OW WATER STAN �AR10 lq� YRAWNi r�Wr�ER&A AIR 8c VACUUM ASSEMBLY (1" &. 2') W&C.NO. -17V "Tft AZUSASCAL a xoo .nam¢ • — b 0 3 3 0 06/07/01 y'O 74 LIGHT 8 WATER en.�w. " L451IM OiECTW•1"i6101FRfixi6 RCE NO. pGTE 058 • z 12' min. I I I e I o 2 i 12' MIN. 36' MAX. O 1 NOTE PIPING k VALVES SHALL RECEIVE ONE COAT OF RED LEAD PRIMER AND TWO FINISHING COATS OF ENAMEL PAINT (COLOR SHALL BE DETERMINED BY THE CITY). WATEB� STAl�t �AR� VRA w mN WBACKFLOW PREVENTION ASSEMBLY 0WcL �UBLE CHECK VALVE W yra wrs, a.as-soot ll AZUSA SCAM am=na+aK¢ r� ,�-�.y-- s o 00/07/0I y os 3 LIGHT 6 WATER ME NO. GATE 059 r i r MIN. LINE UNION PER DEVICE� 12• MIN. HIGH WATER LEVEL 36' MAX. I METER BOX i i I � PROPERTY LINE, EASEMENT UNE, R RN LUTE MAX. SECTIONAL VIEW R.P. DEVICE SMALLER THAN 2 REDUCED PRESSURE BACKFLOW PREVEhTER ASSEMBLY 1 I FIG. 26LL 4(OAE.PIPE SUPPORT HIGH WATER LEVEL 6*MIN. (BOTH ENDS) VALVE BOX & COVER PER SID. W-2 12' MIN. �4' P.C.C. V/6X6 / j 36' MAX 30X10 WIRE MESH . I 0.1. PIPE CLASS 350 (FLANGED) . THRUST �• I ;. - - .•-�.� PER STD. W-6 �. ,- - (TYPJ 1 •R.W.G.V.. I FLG.xMJ.� PROPERTY uME, EASEMENT LINE, OR R/W UNE �MAX) SECTIONAL VIEW MOTE- R.P. DEVICE LARGE THAN 2" ALL ASSDIBUES MUST BE APPROVED BY U.S.C. FOUNDATION FOR CROSS CONNECNON CONTROL & HYDRAI/UC RESEARCH. WATER STANDARD OXAINt1"�'�' BACKFLOW PREVENTION ASSEMBLY p14 Mo. REDUCED PRESSURE PRINCIPLE W - 15 *AM a45-iooi AZUSAA 0 3 3 0 06/07/01 2 3 LIGHT & WATER ` warm alac*1•a�uEnaiara wce no. ooTE 1 I 1 060 i I BACKFLOW DEVICE (RP, DC OR SVB) I I 5' MAX. 0 0 VALVE BOX ASSEMBLY PER STO. W-2� I 12' MIN. i 36' MAX. HIGH WATER LEVEL I o.N. PIaE cuss iso (FLANGED) ' THNzusr SID. W-6 •+ (riP) I I R.W.C.V..� '. . FLG.XM.J. PROPERTY UNE, EASEMENT LINE, OR R/W LINE 1• (I"A"') SECTIONAL VIEW I i M.J. TEE w// EARANCE AREA FG&ED Oka _ ' r--------- --------------� 12' MD1-(--- I --_-1 MK rte-x}-12' MIH I I I I ° 0 1 I _-- 1 1 i WATERNAIN I { PLAN VIEW NOTE PIPING Nt VALVES ED LL PRIMER ONE COAT OF RED CAO PRIMER AND TWO (COLOR COATS OF ENAMEL PLANT (COLOR SHALL BE DETERMINED BY THE CRY). WATER STAN aAR� nR+rMN8^ BACKFLOW PREVENTION ASSEMBLY °16 MO GENERAL �N6TALLAT�ON Vy . y ra OLTfi a-os-ioo� AZUSA 4 0 S 5 G 06/ 7/01 3 3 LIGHT d WATER .4KfY1T°IECTgI-vwtFRtlFNlro6 RCE NO. GATE I li 061 1 FINISH SURFACE ZONE 'A' 2 12' 1 f , I ZONE ' I a � N I f t I I PARALLEL CONSTRUCTION I FINISH SURFACE � ZONE C. N JIN S 4- 10' (�-- Ley i 121' f ZONE 'D' I CROSSINGS WATER STAN �AR� cum ow WATER AND SEWER SEPARATION llom4T8 w.os-moi ^• —` W - 16 AZUSA .418 /S S�gwn �rnwveu �� �.o+— 4 0 3 3 0 06/07/01 7 2 LIGHT B WATER "£6$(TdTWI 4'� 062 - r I PARALLEL CONSTRUCTION Zone P Prohibited. I Zone A Sewer lines parallel to water mains shall not be permitted in this zone without approval from the responsible health agency and water supplier. Zone B A sewer line placed parallel to a water line shall be constructed of: 1. Extra strength vitrified clay pipe with compression joints. 2. Plastic sewer pipe with rubber ring joints (per ASTM D3054) or equivalent. 3. Cast or ductile iron pipe with compression joints. CROSSING CONSTRUCTION Zone P Prohibited. Zone C A sewer line crossing a water main shall be constructed of: 1. Ductile iron pipe with hot dip bituminous coating and mechanical joints.- • 2. A continuous section of Class 200 (DR 14 AWWA C900) plastic pipe or equivalent, centered over the pipe being crossed. 3. Any sewer pipe within a continuous sleeve. Zone D A sewer line crossing a water main shall be constructed of: 1. A continuous section of ductile iron pipe with hot dip bituminous tooting. 2. A continuous section of Class 200 (OR 14 AWWA C900) plastic pipe or equivalent, centered on the pipe being crossed. 3. Any sewer pipe within a continuous sleeve. 4. Any sewer pipe separated by a ten—foot by ten—foot, four— inch thick reinforced concrete slab. Lateral sewer. The above special constructions apply to the house laterals that cross above a pressure water main but not to those that cross below pressure water main. 1 Sewer force main: Shall not be installed in all zone A,B,C,D,P and all portions of the sewer within ten feet of the water main shall be enclosed in a continuous sleeve. - When special conditions exist, on approval from the responsible health agency and water supplier is required. WATER STANM=10AW=K M=10 auwMl Move.ern owG.wo. WATER AND SEWER SEPARATION DATE a.-m-moi W - '16 ass6rrrt plEtlpn•Mahn G`BUilb6 RCE ,+O. OCa�EAZUSA 2;2 LIGHT 9 WATER l MMlR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITI"1!SV DATE: MAY 21, 2003 SUBJECT: AWARD OF CONTRACT FOR PROJECT W-185, BIG DALTON WASH CROSSING, 12-INCH WATERLINE RECOMMENDATION It is recommended that the Utility Board/City Council approve the award of contract to Engineered Plumbing for the construction of Project W-185, Big Dalton Wash Crossing, 12- Inch Waterline. BACKGROUND The Water Division has designed a water main, called the Big Dalton Wash Crossing, to carry water across Big Dalton Wash at Gladstone Avenue to mitigate an apparent restriction in flow that is adversely impacting fireflows in the southern portion of the water system. Engineered Plumbing's Bid for the construction of the project is $86,614.00. The bids of the second and third low bidders were Valverde Construction, $129,175.20, and Colich Construction, $184,500.80. Bids were publicly opened May 15, 2003. FISCAL IMPACT A budget item for this project has been approved by the Board in the FY 2002-2003 Capital Budget. Prepared by: Chet Anderson, Assistant Director of Water Operations 063. a 7 1 Nr AZUSA uaw a were AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MAY 21, 2003 SUBJECT: AUTHORIZATION TO ENTER INTO CONTRACTS WITH PPM ENERGY, INC., FOR THE PURCHASE OF THREE (3) MEGAWATTS OF WIND POWERED ELECTRICAL ENERGY AND TO ADOPT A RENEWABLE PORTFOLIO STANDARD RECOMMENDATION It is recommended that the Utility Board authorize the Mayor to execute the agreement with PPM Energy, Inc. ("PPM") once the final agreement is prepared, for the purchase of wind powered electrical energy associated with a (3) MW share of the 145.6 MW High Winds wind generation facility currently under construction in Solano County, California. It is further recommended that Utility Board adopt the Renewable Portfolio Standard (RPS) in fulfillment of SB 1078 requirements. BACKGROUND A. STATE RENEWABLE PORTFOLIO STANDARD Senate Bill 1078 became law January 1, 2003 and requires local publicly owned utilities to establish and implement a renewable portfolio standard that recognizes the Intent of the Legislature to encourage renewable resources, while taking into consideration the effect on rates, reliability, financial resources, and the goal of environmental improvement. The law also requires that each local publicly owned utility report to its customers, on an annual basis, the fuel mix used to serve its customers and the expenditure of public goods funds for renewable resources. The recommended Renewable Portfolio Standard (RPS) for the adoption by the Utility Board is attached in Attachment A. B. DESCRIPTION OF THE RESOURCE SELECTION PROCESS In February 2002 the Southern California Public Power Authority (SCPPA) Issued a request for proposals (RFP) for renewable energy projects on behalf of Its members, including Pasadena. 064 I a SCPPA received a total of 44 proposals for various types of renewable energy projects Including wind, solar, geothermal,biomass, and landfill gas. The proposals were reviewed by the SCPPA Resource Planning Committee, which recommended retaining 20 proposals for further consideration. The wind generation proposals were identified as the lowest cost renewable resources, when compared to the solar, geothermal, and biomass proposals. However, the intermittent nature of the wind resources, i.e. energy production based on weather patterns, and associated scheduling burdens and price risk make many wind proposals less attractive for power system operations than other resources with more predictable outputs. Many SCPPA members do not have sufficient scheduling resources to implement complex hourly wind prediction, load balancing, and scheduling procedures. A proposal from PPM, a wholly owned subsidiary of PacifiCorp Holdings, Inc., and Scottish Power, attracted several SCPPA members and was able to achieve the necessary minimum subscription to go forward. PPM's proposal created more value than its other wind competitors by providing a redelivery service, providing firm energy from a wind project on a continuous basis, independent of wind patterns. This energy can be relied upon during summer months and scheduled on a firm basis thus reducing hourly scheduling burden and price risk associated with deviations between amounts actually generated versus those scheduled. C. SUMMARY OF THE AGREEMENT Source: Initially, 145.6 MW High Winds Project owned &operated by FPL energy, in Solano County, California ("Project"). Alternate: PPM has option to designate up to two alternative sources for the wind energy starting in 2007. Minimum of 70% must be generated in California. If State law requires, 100'/6 must be generated in California. Quantity: Actual metered output from 3 MW of Project (or alternate source), or approximately 8,800 MWh per year Delivery: Delivered firm In Southern California (Cal ISO SP-15), seven days per week and 24 hrs/day (7x24) at 1 MWh/hour, except during true-up. Term: 25 years, with each Party having a unilateral right to cancel after 20 years upon one-year written notice to the other party. Price: Fixed price of$53.50/MWh, with no escalation over the term. Note that PPM requires a minimum subscription of 30 MW from all participating SCPPA members combined in order to make this project viable. The contract will not be executed by PPM without this minimum subscription. The proposed wind energy agreement is in compliance with SB 1078 and will increase the amount of renewable energy in Azusa's energy portfolio by approximately 8.8 GWh per year, representing 4% of retail energy sales in FY2004. In addition to the proposed wind energy agreement, Azusa currently receives about 5 GWh of hydroelectric energy from Hoover. 065 D. ECONOMICS OF THE RESOURCE The firmed wind energy product, including all environmental attributes, is delivered at a fixed price of $53.50/MWh or 5.354/kWh, without escalation over the term. Although this price is somewhat higher than proposals for non-firm wind energy, which ranged from $46/MWh to $49/MWh when levelized for no escalation, it is a superior product without delivery and price risk that is more comparable to predictable resources such as biomass or solar, which were offered to SCPPA at $60/MWh and up, excluding the cost of transmission. Azusa's annual cost for the expected average output of 8,800 MWh is $470,800. This cost is expected to be between $50,000 to $125,000 per year higher than local spot market energy sources (non-renewable) in the next five years, resulting in a system-wide rate impact of up to 0.5% for the period. This is commonly known as the "premium" paid the renewable resource. The City is likely to absorb some cost increase in the retail rates in the next five years since only limited funds are available from the Public Benefits Charge to reduce the "premium" paid. FISCAL IMPACT This firmed wind energy agreement is expected to cost up to $125,000 per year more than generic non-renewable power, resulting in a rate premium of approximately 0.5% for the next five years. Currently, there are limited funds available from the Public Benefit Charge (approximately $60,000 per year) to reduce the cost of this purchase and anticipated funds from PBC are likely to be insufficient for the next five years for this purpose. Therefore, staff has included the increased cost in the proposed retail rate adjustment for Board consideration. Prepared by: Bob Tang, Assistant Director Resource Management Attachments: TM aLl PPM Energy Attachment A Agreement 066 v ATTACHMENT A City of Azusa Renewable Power Portfolio Standard(RPS) May 21, 2003 Purpose: This standard represents Azusa's commitment to renewable resource procurement consistent with the provisions of SB 1078. Goal: Azusa will increase procurement of electricity from "eligible"renewable resources until a target portfolio level of 20% is reached by 2017, measured by the amount of energy procured in making retail sales of electricity. Qualifying Resources: Electricity produced from the following technologies constitute "eligible"resources: biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, hydroelectric generation, digester gas, municipal solid waste, landfill gas, ocean wave, ocean thermal,tidal current,renewable components of system sales from other parties, or renewable distributed generation on the customer side of the meter. Facilities can be located anywhere in the interconnected transmission system located in the west,and with preferences to resource locations within California. Timing of Long-Term Resource Additions: Renewable resources will be procured to the extent they fulfill unmet needs identified in Azusa's long-term resource plan and supplement short-term resource needs. Azusa will not terminate, abrogate, or otherwise end any existing long-term contract in order to meet the renewable target portion of its energy portfolio. Price Benchmarking: The appropriate reasonable prices to bo- paid for renewable resources will be established by the Azusa's Utility Board and should to the maximum extent feasible consistent with the price benchmarks set by the CPUC for the State's investor owned utilities and shall include the cost of associated transmission to deliver the energy to Azusa's service territory. Limit on Subsidies: Azusa may utilize the funds generated by the"public benefits charge" (PBC) that Azusa adds as a surcharge to retail bills pursuant to the provisions of AB 1890 to subsidize the above-market costs of renewable energy. To the extent such funds are not insufficient, Azusa may defer the renewable resources procurement up to three years as described below until such funds are sufficient for this purpose. 067 r Flexible Compliance: Azusa is authorized to purchase the"environmental attributes"or"green tickets"from a renewable resource,without purchasing the associated energy,to comply with this RPS. Also,"catching-up"for procurement shortfalls and"banking"excess procurements for credit in the future over as many as three years will be allowed.However,procurement preference should be given to physical renewable resources in the first instance. System Rate Impact: The addition of renewable energy resources shall not increase system wide rates by more than a level by the Utility Board,currently set at 5%of the retail rates. 068 Revisions as of May 5,2003 THIS WORKING DRAFT DOES NOT CONSTITUTE A BINDING OFFER,SHALL NOT FORM THE BASIS FOR AN AGREEMENT BY ESTOPPEL OR OTHERWISE,AND IS CONDITIONED UPON EACH PARTY'S RECEIPT OF ALL REQUIRED MANAGEMENT APPROVALS(INCLUDING FINAL CREDIT AND LEGAL APPROVAL). ANY ACTIONS TAKEN BY.A PARTY IN RELIANCE ON THE TERMS SET FORTH IN THIS WORKING DRAFT OR ON STATEMENTS MADE DURING NEGOTIATIONS PURSUANT TO THIS WORKING DRAFT SHALL BE AT THAT PARTY'S OWN RISK. UNTIL THE POWER PURCHASE AGREEMENT IS NEGOTIATED AND SIGNED, NO PARTY SHALL HAVE ANY OTHER LEGAL OBLIGATIONS, EXPRESSED OR IMPLIED, OR ARISING IN ANY OTHER MANNER UNDER THIS WORKING DRAFT OR IN THE COURSE OF NEGOTIATIONS. LONG-TERM POWER PURCHASE AGREEMENT (WIND POWER) MADE BETWEEN PPM ENERGY,INC., ASSELLER AND [XXX], AS PURCHASER DATED AS OF ,2003 PoNM3-1118531.16 0058892-00026 069 TABLE OF CONTENTS RECITALS......................................................................................................................................1 ARTICLE 1 -DEFINITIONS.........................................................................................................I ARTICLE 2-TERM AND TERMINATION...............................................................................12 2.1 Term.......................................................................................................................12 2.2 Filing of Agreement with FERC............................................................................13 2.3 Right to Terminate Prior to Commercial Operation..............................................13 2.4 Designation of Alternate Project....:.......................................................................13 2.5 Survival of Provisions............................................................................................14 ARTICLE 3-PURCHASE AND SALE.......................................................................................14 3.1 Purchase and Sale of Delivered Energy.................................................................14 3.2 Environmental Attributes.......................................................................................14 3.2.1 Purchase and Sale of Environmental Attributes........................................14 3.2.2 Reporting of Ownership of Environmental Attributes...............................15 3.2.3 Further Assurances.....................................................................................15 3.3 Contract Rate.........................................................................................................15 3.4 No Change in Rates..............:............................................:...................................15 ARTICLE 4—BASE SCHEDULE;BASE SCHEDULE ADJUSTMENTS................................15 4.1 Base Schedule........................................................................................................16 4.2 Base Schedule Adjustments...................................................................................16 ARTICLE 5 -BILLING AND PAYMENTS................................................................................17 5.1 Billing and Payment...............................................................................................17 5.1.1 Calculation of Delivered Energy;Invoices and Payment..........................17 5.1.2 Disputed Invoices.......................................................................................18 5.1.3 Set-offs and Deductions.............................................................................A------ . . Deleted:19 5.1.4 Interest on Past Due Amounts...........................:........................................19 5.1.5 Form and Transmittal of Invoices..............................................................19 5.2 Title and Risk of Loss............................................................................................19 5.3 Credit Support........................................................................................................19 5.3.1 Seller's Guarantor.......................................................................................19 5.3.2 Purchaser's Credit Support.........................................................................20 5.3.3 Cash As Additional Security......................................................................20 5.4 Allocation of Taxes................................................................................................20 5.5 Financial Statements..............................................................................................M_-.- Deleted:21 ARTICLE 6-MEASUREMENT AND METERING...................................................................21 6.1 Metering Equipment..............................................................................................21 6.2 Measurements........................................................................................................21 6.3 Testing and Correction...........................................................................................22 6.3.1 Required Testing........................................................................................22 i PortIM3-1418531.16 0058892-00026 070 6.3.2 Standard of Meter Accuracy; Resolution of Disputes as to Accuracy ..........22 6.4 Maintenance of Records........................................................................................23 6.5 Right To Audit.......................................................................................................23 6.5.1 Audit Rights...............................................................................................23 6.5.2 Refunds of Overpayments and Underpayments........................................23 oeietea:za ARTICLE7-NOTICES...............................................................................................................23 7.1 General....................................:..............................................................................23_ - Deleted:z4 ARTICLE 8 - DEFAULTS AND REMEDIES.............................................................................24 8.1 Events of Default...................................................................................................24 8.2 Rights Upon Event of Default................................................................................26 8.3 Cure Rights of Seller Lender and Purchaser Lender.............................................26 8.4 Default under Related Agreement.........................................................................28 8.5 Net Out of Payables Upon Termination.................................................................28 8.6 Closeout Setoffs...............................:.....................................................................28 ARTICLE 9-LIMITATION OF LIABILITY..............................................................................29 ARTICLE 10-DISPUTE RESOLUTION....................................................................................29 ARTICLE11 -ASSIGNMENT.....................................................................................................30 11.1 Restriction on Assignments...................................................................................30 11.2 Assumption by Assignee;No Release from Liabilities.........................................31 11.3 Binding Effect........................................................................................................31 ARTICLE 12-FINANCING LIENS............................................................................................31 12.1 Assignment as Security to Seller Lender...............................................................31 12.2 Assignment as Security to Purchaser Lender.........................................................32 ARTICLE 13-REPRESENTATIONS,COVENANTS,AND WARRANTIES.........................33 13.1 Seller's Representations and Warranties...............................................................33 13.2 Purchaser's Representations and Warranties.........................................................34 Article14-MISCELLANEOUS...................................................................................................35 14.1 Severability............................................................................................................35 14.2 Amendment............................................................................................................35 14.3 Waiver....................................................................................................................35 14.4 Further Assurances.................................................................................................35 14.5 No Third-Party Beneficiaries..................................................:..............................35 Deleted:36 14.6 Time.......................................................................................................................35- Deleted:36 14.7 Headings,Captions;Construction;Conflict Between Agreement and Exhibits..................................................................................................................36 14.8 Forward Contract...................................................................................................36 14.9 Entire Agreement...................................................................................................36 14.10 Confidential Information.......................................................................................36 ii Pon1M3-1418531.16 0058892-00026 I 071 14.11 Press Releases........................................................................................................38 14.12 Governing Law......................................................................................................38 14.13 No Agency................................:...::....................................:..................................38 14.14 Cooperation............................................................................................................38 14.15 Waiver of Jury Trial...............................................................................................39 14.16 Effect of Force Majeure Event...............................................................................38 14.17 Non-Recourse Obligations.....................................................................................40 iii PorthW.1418531.16 0058892-00026 072 POWER PURCHASE AGREEMENT DelMed:. This Power Purchase Agreement ("Agreement"), dated as of this _ day of -2003,is between PPM Energy,Inc.,an Oregon corporation("Seller'), and[XXX),a municipal corporation created pursuant to the laws of the State of California ("Purchaser'). Seller and Purchaser are sometimes referred to in this Agreement collectively as the "Parties" and individually as"Party." RECITALS WHEREAS, PPM has rights to the electric energy output and associated environmental attributes of a wind turbine electrical generation facility with an expected installed capacity of 145.8 MW to be constructed on a site located in Solano County,California(the"Project');and WHEREAS, Seller desires to sell, and Purchaser desires to purchase electric energy equal to the Metered Output of an undivided [_j ( )MW sharel of the installed capacity of the Project or of an Alternate Project (as defined below), along with any and all Environmental Attributes associated with such Metered Output;and WHEREAS,Seller is prepared to deliver and Purchaser is prepared to receive an amount of electric energy equal to such amount of the Project's or the Alternate Project's Metered Output,but shaped into flat[_]( )MW'hourly blocks and delivered at the Delivery Point;and WHEREAS, Seller may obtain the electric energy for delivery at the Delivery Point from market purchases or from any other source or sources or any combination thereof as determined by Seller in its sole discretion,but will deliver the associated Environmental Attributes directly from the Project or an Alternate Project at the time of production. NOW THEREFORE,in consideration of the mutual covenants contained herein, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the Parties agree as follows: ARTICLE 1 DEFINITIONS Unless otherwise required by the context in which any term appears,(i)capitalized terms used in this Agreement shall have the meanings specified in this Article 1;(ii)the singular shall include the plural and vice versa; (iii)references to "Articles," "Sections," "Schedules," The installed capacity for each member purchaser(each contracting separately)would be as follows: Anaheim(6 MW);Azusa(3 MW);Banning(3 MW);Colton(3 MW);Glendale (9 MW);Pasadena(6 MW)and Vernon(15 MW). - 2 This number will be the installed capacity multiplied by an assumed capacity factor of 33.33%,as follows: Anaheim(2 MW); Azusa(I MW); Banning(1 MW); Colton(I MW); wnnxttea —� Glendale(3-MW);-Pasadena V-MW);-anB Vemoii(5MVOI----------- -------------------- 1 LONG-'PERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Pon1M3-1418531.160058892-00027 073 i "Annexes," "Appendices," or "Exhibits" (if any) shall be to articles, sections, schedules, annexes, appendices, or exhibits hereof; (iv)all references to a particular entity shall include a reference to such entity's successors and permiiied assigns;(v)the words"herein,""hereof,"and "hereunder" shall refer to this Agreement as a whole and not to any particular section or subsection hereof; (vi)all accounting terms not specifically defined herein shall be construed in accordance with GAAP, consistently applied; (vii)references to this Agreement shall include a reference to all appendices, annexes, schedules, and exhibits hereto, as the same may be amended, modified, supplemented, or replaced from time to time; and (viii)the masculine shall include the feminine and neuter and vice versa. "Additional Security"shall mean: (1) a Letter of Credit;or (2) cash (immediately available funds) in the amount of$50,000 per MW of Installed Capacity subject to this Agreement, which cash must be delivered to a Custodian to be held thereby as security for the Party entitled to the benefits thereof pursuant to an escrow agreement satisfactory in form and substance to the Party for whose benefit such cash is being provided, which escrow agreement shall incorporate the provisions of Section 5.3.1 hereof with respect to cash posted by or on behalf of the Seller;or (3) a guaranty from a Qualified Guarantor of: (i) Seller's or Purchaser's obligations under this Agreement, as applicable;or (ii) The obligations of Seller's Guarantor under the guaranty agreement executed and delivered by Seller's Guarantor hereunder; in either case on substantially the same terms and conditions set forth in the form of guaranty agreement attached hereto as Exhibit B. "Affiliate"shall mean,with respect to any Person,each Person that directly or indirectly controls, is controlled by, or is under common control with such designated Person. For purposes of this definition,"control"(including,with correlative meanings,the terms"controlled by" and "under common control with"), as used with respect to any Person, shall mean the possession,directly or indirectly,of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or otherwise. "Alternate Project" means, individually or collectively, an undivided MW share of no more than two replacement wind turbine electrical generation facilities designated by Seller in its sole discretion that(a) are owned by Seller or its Affiliate or are facilities from which Seller or its Affiliate holds rights topurchaseoutput and Environmental Attributes, (b)_were-placed into--------- F r tied operation after September 26, 1996, and (c)areprojected to produce the same Average Annual 2 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Parend3-1118531.16 0058892-=7 074 Capacity as the installed capacity committed to this Agreement. For example, if the capacity factor of the Project is projected to be 33.33% and Purchaser is purchasing a 3MW share of the Project's Output, the Average Annual Capacity would be one (1) average MW (aMW). If an Alternate Project was projected to have a 37% capacity factor, the Purchaser's share of the Metered Output of the Alternate Project would be adjusted to 2.7MW so as to yield one(1)aMW from the Alternate Project per year. In addition,if Seller determines in its sole discretion that the Project is not sufficient to serve this Agreement, Seller may designate one(1)supplemental wind turbine electrical generation facility in addition to the Project,in which case the Project and such supplemental facility shall be referred to collectively as the"Alternate Project." "Applicable Law" shall mean,w ith respect to any Person and its Affiliates,a 111 aws, statutes, codes, acts,treaties,ordinances,orders, judgments, writs,decrees, injunctions,rules, regulations, governmental approvals, licenses and permits, directives, and requirements of all regulatory and other governmental authorities, in each case applicable to or binding upon such Person and,in the case of Seller,the Project(and,if applicable,the Alternate Project). "Average Annual Capacity" shall mean the Contract Capacity Share multiplied by the expected annual capacity factor of the Project or Alternate Project. The Average Annual Capacity hereunder is [Y] ( )MW,based on a[X] ( ) MW Contract Capacity Share of the Project and a 33.33 percent expected Project capacity factor. "Balancing Account"shall have the meaning given in Article 4. "Base Schedule"shall have the meaning given in Section 4.1. "Business Day"shall mean each Day that is not a weekend Day or a federal holiday. "CALSO" shall mean the California Independent System Operator Corporation, or its successor. "CAMD" shall mean the Clean Air Markets Division of the Environmental Protection Agency,any successor agency and any other state or federal entity that is given jurisdiction over a program involving transferability of Environmental Attributes. "Capitalized Lease Obligation" means the obligation of a Person to pay rent or other amounts under any lease of real or personal property which obligation is required to be classified and accounted for as a capital lease on the balance sheet of such.Person under GAAP(including the Statement of Financial Accounting Standards No. 13 of the Financial Accounting Standards Board,but without regard to paragraph 48 of such Statement). For purposes of this Agreement, the amount of such obligation shall be the capitalized amount thereof determined in accordance with GAAP(including such Statement No. 13). "Commercial Operation Date" shall mean the date on which any of the wind turbines in the Proiect-(or-in the Alternate Proiegti representmg_at-least thirty-(30)-MW_of-Installed_.--- romwttm Capacity and all other portions of the Project(or of the Alternate Project)necessary to put such 3 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PmOM3-1418531.160058842-00027 07-5 Installed Capacity of the Project (or the Alternate Project) into operation with the Interconnection Facilities and the Transmission System have been tested and commissioned and are both authorized and able to operate and deliver energy to the Transmission System in accordance with Prudent Utility Practices. "Contract Capacity Share" shall mean Purchaser's undivided [ X ] ( ) MW share of the Installed Capacity, based on an assumed capacity factor of 33.33%. The Contract Capacity Share shall be adjusted to reflect the capacity factor for the Project or Alternate Project (as reasonably determined under the Project PPA for the Project, or as otherwise reasonably determined for such Alternate Project) such that the Average Annual Capacity does not change. For example,if the Project's actual capacity factor is 33.00%,the Purchaser's Contract Capacity Share shall be increased to an undivided [ X ] ( ) MW share of the Installed Capacity for purposes of determining Metered Output. "Contract Rate"shall have the meaning set forth in Section 3.3. "Contract Year" shall mean the Days from January 1 through December 31, inclusive, of any given year. The first Contract Year shall commence on the first January 1 occurring after the Commercial Operation Date. "Credit Requirements" If at the time in question the Purchaser does not have Electric Revenue Bonds outstanding, then Purchaser meets the Credit Requirements as long as Purchaser is not experiencing,with respect to the operation of its electric system,any effect or change that, alone or in the aggregate,materially adversely affects or is likely to materially adversely affect (i)Purchaser's ability to perform its obligations under this Agreement in a timely manner,or(ii) the performance, operations, business, property, assets, liabilities or condition (financial or otherwise) of the Purchaser. Seller meets the Credit Requirements if either it or Seller's Guarantor(x)has a long-term credit rating(corporate or long-term senior unsecured debt)of(1) "Baa3" or higher by Moody's; or(2) "BBB-" or higher by S&P, or(y)the Total Consolidated Debt of Seller or Seller's Guarantor does not exceed 65% of the Total Consolidated Capitalization of the Seller or Seller's Guarantor,as applicable. "Custodian" shall mean a commercial bank or trust company organized under the laws of the United States of America or a political subdivision thereof, whose long-term senior unsecured debt is rated at least"A"by S&P or"A2"by Moody's. "Day" means a period of 24 consecutive hours beginning at 00:00 hours Prevailing Pacific Time on any calendar day and ending at 24:00 hours Prevailing Pacific Time on the same calendar day. "Debt" of a Person means at any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds (other than surety bonds), debentures,notes or other similar instruments, (iii)all obligations of such Person to pay the deferred purchase price of property or services,except trade accounts payable arising in the-ordinary eoumof businessi-(iv)-all-Capitalized-Lease-Obligations of-such-P€rson;-(v)-all-- - FO m7 � non-contingent reimbursement, indemnity or similar obligations of such Person in respect of 4 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PonIM3-1418531.16 0058892-00027 076 amounts paid under a letter of credit, surety bond or similar instrument, (vi) all Debt of others secured by a Lien on any asset of such Person, whether or not such Debt is assumed by such Person, and(vii)all Debt of others Guaranteed by such Person. "Default Notice Parties"shall have the meaning as set forth in Section 8.1. "Delivered Energy" shall mean the electric energy scheduled to Purchaser at the Delivery Point,as specified in Article 4. "Delivery Point" SP-15 as defined under the CAISO tariff on the Effective Date of this Agreement. If such definition of SP-15 changes in any material respect or the zone ceases to exist, Seller shall promptly designate an alternate Delivery Point that most nearly resembles(in terms of liquidity, homogeneity and relative economic impact on each Party) the previous definition of SP-15;provided, however, that such designation shall be subject to the consent of Purchaser's authorized representative, which such representative shall not unreasonably condition, withhold or delay. In the event that the Parties cannot agree on an alternate delivery point,then the Delivery Point shall be the 230 kV side of the Mead substation. "Disclosing Party"shall have the meaning set forth in Section 14.10. "Downgrade Event" (1)when used with respect to the Seller or the Seller's Guarantor, shall mean any event that results in such Person failing to meet the Credit Requirements; (2) when used with respect to the Purchaser during any period in which the Purchaser has Electric Revenue Bonds outstanding, shall mean any event that constitutes a default under Purchaser's Electric Revenue Bonds;and(3)when used with respect to Purchaser during any period in which the Purchaser does not have Electric Revenue Bonds outstanding, shall mean any event that results in the Purchaser failing to meet the Credit Requirements. "Due Date"shall have the meaning assigned thereto in Section 5.1.1 hereof. "Effective Date"shall have the meaning set forth in Section 2.1. "Electric Revenue Bonds"means the outstanding revenue bonds heretofore or hereafter issued by Purchaser and payable from the revenues derived by Purchaser from its electric distribution system and related operations. "Environmental Attributes"shall mean any and all fuel,emissions,air quality,or other environmental characteristics, credits, benefits, reductions, offsets, and allowances, howsoever entitled or named,resulting from the use of wind generation or the avoidance of the emission of any gas, chemical, or other substance to the air, soil or water attributable to the Metered Output generated by the Project (or by the Alternate Project) during the Term and in which the Seller has property rights or will have property rights upon such attributes coming into existence, and include without limitation any of the same arising out of legislation or regulation concerned with oxides of nitrogen, sulfur,or carbon, with particulate matter, soot, or mercury,or implementing _ Fiiiiiiiined the Uhited-Nations Fmmework-Convention-on Ctbnate ChangL t e-"UNFCCC")-or the Kyoto- Protocol to the UNFCCC or crediting "early action"with a view thereto, or laws or regulations 5 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Poe1M3-1418531.16 0058892 00027 077 involving or administered by the CAMD, and all Environmental Attribute Reporting Rights,but specifically excluding only the PTCs. One(1)MWh of electrical energy from the Project(or an Alternate Project)corresponds to one(1)MWh Environmental Attribute. "Environmental Attributes Reporting Rights" shall mean all rights to report ownership of the Environmental Attributes to any person or entity, under Section 1605(b)of the Energy Policy Act of 1992 or otherwise. "Event of Default"shall have the meaning set forth in Section 8.1. "Federal Power Act" shall mean the Federal Power Act, as amended, 16 U.S.C. §791a, et seq. "FERC" shall mean the Federal Energy Regulatory Commission and its predecessor and successor agencies. "Force Majeure Event"shall mean any act or event that delays or prevents a Party from timely performing obligations under this Agreement or from complying with conditions required under this Agreement to the extent that such act or event is reasonably unforeseeable and beyond the reasonable control of and without the fault or negligence of the Party relying thereon as justification for such delay,nonperformance,or noncompliance,including,without limitation: (i) an act of God or the elements, extreme or severe weather conditions, explosion, fire, epidemic, landslide, mudslide, sabotage, lightning, earthquake, flood or similar cataclysmic event, transportation delays, unavailability of materials, transmission curtailment or outage, an act of public enemy,w ar, blockade,c ivil i nsurrection,riot,civil disturbance o r s trike or other labor difficulty caused or suffered by a Party or any third party beyond the reasonable control of such Party or its.Affiliates,or an event that constitutes an event of force majeure affecting the Project Owner under the Project PPA(whether such cause is similar or dissimilar to the foregoing);(ii) any restraint or restriction imposed by law or by rule, regulation, or other acts of governmental authorities,whether federal, state or local which by exercise of due diligence and in compliance with applicable law a Party could not reasonably have been expected to avoid and to the extent which, by exercise of due diligence and in compliance with applicable law, has been unable to overcome (so long as the affected Party has not applied for or assisted such act by a governmental authority);or(iii)electric transmission interruptions or curtailments;provided that the term"Force Majeure Event" does not include(a) economic conditions that render a Party's performance of this Agreement at the Contract Rate unprofitable or otherwise uneconomic (including Purchaser's ability to b uy energy o r Environmental Attributes at a lower p rice, or Seller's ability to sell energy or Environmental Attributes at a higher price, than the Contract Rate), (b) a governmental act by Purchaser that delays or prevents Purchaser from timely performing its obligations under this Agreement, (c) a less than expected wind resource at the Project or Alternate Project, (d)breach by a party or parties responsible for supplying energy to Seller for delivery to Purchaser under this Agreement, and (e) breach by a party or parties responsible for supplying Environmental Attributes to Seller for delivery to Purchaser under this Agreement(with t he remedy for a ny s uch b reach t o b e g ovemed b y Section 14.16(d) of this ronnaned Agredmentj 6 LANG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Poad3-1418531.16 0058892-00027 078 "GAAP" means generally accepted accounting principles in the United States of America. "Guarantee" by any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Debt or other obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise,of such Person (i)to purchase or pay(or advance or supply funds for the purchase or payment of) such Debt or other obligation (whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services,to take-or-pay,or to maintain financial statement conditions or otherwise)or(ii)entered into for the purpose o f assuring i n any o ther manner the o bligee o f s uch Debt o r other obligation o f the payment thereof or to protect such obligee against loss in respect thereof(in whole or in part), provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. The term "Guarantee" used as a verb has a corresponding meaning. "Information"shall have the meaning set forth in Section 14.10. "Installed Capacity" shall mean the nominal or"nameplate"number of MW each wind turbine is capable of producing, multiplied by the number of wind turbines installed at the Project (or at the Alternate Project). For example, the Project wind turbines have a nameplate capacity of 1.8 MW per turbine multiplied by 81 wind turbines yields a Project Installed Capacity of 145.8 MW. "Interconnection Facilities" shall mean the interconnection facilities, control and protective devices, and metering facilities required to connect the Project (or the Alternate Project) with the Transmission Provider's Transmission System in order to effectuate the purposes of this Agreement, including without limitation the Project Substation and the line connecting the Project Substation to the existing lines of the Transmission System. "ISO"shall mean the California Independent System Operator or its successor. "IGlowatt-hour"or"kWh"shall mean a unit of energy equal to one kilowatt of power supplied or taken from an electric circuit for one hour. "Letter of Credit"shall mean an irrevocable,transferable standby letter of credit in form and substance acceptable to the Party in whose favor such letter of credit is issued (the "Guaranteed Party"),naming the Guaranteed Party(and its permitted transferees)as the person entitled to demand payment and present draw requests thereunder,which letter of credit: (1) is issued by a U.S.commercial bank or a foreign bank with a U.S.branch, with such bank having a credit rating on its senior unsecured debt of: (a) "AT'or higher from Moody's;or --- .------_...._------------------------ _ .._.-..-----...-..---_..._.. MnnathM (b) A"or higher from S&P; I 7 LANG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] i Pordnd7-1418531.16 0058892-00027 079 I (2) permits the Guaranteed Party to draw up to $50,000 per MW of Installed Capacity subject to this Agreement for the purpose of paying any and all amounts owing by Seller hereunder; (3) if the Letter of Credit is issued by a foreign bank with a U.S. branch, permits Buyer to draw upon the U.S.branch; (4) provides that within five (5) Business Days following any such drawing, the issuer of such letter of credit shall reinstate the amount available for drawing thereunder to $50,000 per MW of Installed Capacity committed to this Agreement, with such reinstatement to be in form and substance satisfactory to the Guaranteed Party, and also provides that if not so reinstated within such period, the Guaranteed Party shall be entitled to draw the entire remaining amount available thereunder;and (5) additionally permits the Guaranteed Party to draw the entire amount available thereunder if such letter of credit is not renewed or replaced at least thirty(30) Business Days prior to its stated expiration date. "Lien" means, with respect to any asset, any applicable mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, a Person shall be deemed to own subject to a Lien any asset that it or one of its Subsidiaries has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement,capital lease or other title retention agreement relating to such asset. "Megawatt-hour"or"MWh"shall mean a unit of energy equal to one thousand kWh. "Meter" shall mean an instrument or instruments meeting applicable Technical Requirements and electric industry standards used to measure and record the volume of the Metered Output. "Metered Output" shall mean the electrical energy generated by Purchaser's Contract Capacity Share of the Project(or Alternate Project), measured or calculated at the high side of the Project Substation,as measured in kilowatt-hours in accordance with Article 6. The Metered Output shall be calculated as the total electrical output of the Project, measured or calculated at the high side of the Project Substation,multiplied by the ratio of Contract Capacity Share to the total Installed Capacity of the Project (or by a comparable calculation applied to the Alternate Project). For example, if the Purchaser's Contract Capacity Share were 15 MW and the total Installed Capacity of the Project is 145.8 MW, Metered Output would be 10.288% of the total...... Deleted:the electrical output of the Project,measured or calculated at the high side of the Project Substation. Inserted:we Metered Output may be adjusted for an Alternate Project in the circumstances described in the definition of Alternate Project. "Moody's"shall mean Moody's Investor Services,Inc.and any successor thereto. "MW"shall mean-a-unit of power equal to one megawatt. -------------------------------___----_ Formatted ----� 8 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Penlnd3-1418531.16 0058892-0W27 - 080 "Non-Recourse Indebtedness"means any Debt,recourse for which is limited to specific assets of a Person and/or any of its Subsidiaries. "Person" shall mean an individual, partnership, corporation, business trust,joint stock company, trust, unincorporated association, joint venture, governmental authority, limited liability company,or any other entity of whatever nature. "Prime Rate" shall mean the rate published in The Wall Street Journal as the "Prime Rate" from time to time (or, if more than one rate is published, the arithmetic mean of such rates),in either case determined as of the date the obligation to pay interest arises,but in no event more than the maximum rate permitted by Applicable Law. "Project" shall have the meaning set forth in the Recitals, and is more particularly described in Exhibit A attached hereto. "Project Owner"shall mean the legal owner of the Project(or of the Alternate Project), except that if the Project (or the Alternate Project) if financed pursuant to a capital lease, the Project Owner shall be the lessee under such capital lease. "Project Owner's Meters"shall have the meaning set forth in Section 6.1. "Project PPA" shall mean the Power Purchase Agreement between PPM Energy, Inc., as purchaser,and the Project Owner,as seller. "Project Substation" the substation to be constructed as part of the Project, or comparable facilities of the Alternate Project. "Prudent Utility Practices" shall mean those practices, methods, and equipment, as changed from time to time,that: (i) when engaged in are commonly used in the United States of America in prudent electrical engineering and operations to operate wind generation electrical equipment and related electrical equipment lawfully and with safety, reliability, efficiency,and expedition;or (ii) in the exercise of reasonable judgment considering the facts known when engaged in could have been expected to achieve the desired result consistent with applicable law,safety,reliability,efficiency,and expedition. Prudent Utility Practices are not limited to optimum practice,method,selection of equipment, or act,but rather are a range of acceptable practices,methods,selections of equipment,or acts. "PTCs"shall mean production tax credits under section 45 of the Internal Revenue Code or under any state law as in effect on the Effective Date of this Agreement or any successor or ---1 other-provision-providing-for-a-fedcralor-state-tax-credit-determined-by-reference-to-renewable�- --- r°""attea electric energy produced from wind resources. 9 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PoArd3-1418571.16 0058892-00D27 081 "Purchaser"shall mean the City of[XXX], a municipal corporation created pursuant to the laws of the State of California. "Purchaser Lender" shall mean any and all individuals or entities or successors in interest thereof lending money or extending credit (including any financing lease) to Purchaser and to whom Purchaser intends to collaterally assign its interest in this Agreement. "Qualified Guarantor"shall mean a Person who meets the Credit Requirements. "Qualifying Junior Subordinated Debt" means, in the case of Seller's Guarantor, the subordinated debt of Seller's Guarantor or one of its Subsidiaries that has(i)an original maturity of 20 years or more; (ii) provisions permitting the obligor thereon to defer the payment of interest for a period or periods of 20 consecutive quarters or more; and (iii) all other characteristics(except interest rate)materially no less favorable to the relevant obligor than the 8 1/4% Junior Subordinated Deferrable Interest Debentures, Series C, maturing on June 30, 2036 and described in Prospectus Supplement dated June 6, 1996. "Receiving Party"shall have the meaning set forth in Section 14.10. "Related Agreements" means the long-term power purchase agreements (including this Agreement) between Seller and the following cities, as purchasers, for the amount of installed wind energy electrical generation capacity indicated: Anaheim (6 MW), Azusa (3 MW), Banning(3 MW), Colton(3 MW), Glendale(9 MW),Pasadena(6 MW), and Vernon(15 MW). All such agreements are on similar terms and conditions to those set forth in this Agreement. "Seller's Guarantor"means PacifiCorp Holdings, Inc., or any successor guarantor or guarantors designated by Seller that has a long-term credit rating(corporate or long-term senior unsecured debt)of(1)"Baa2"or higher by Moody's;or(2)"BBB"or higher by S&P;provided, however, that Seller shall not be required to provide a guaranty from Seller's Guarantor or any other Person at any time when Seller satisfies the Credit Requirements. "Subsidiary" means any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Person in question. "Seller"shall mean PPM Energy,Inc.,an Oregon corporation. "Seller Lender" shall mean any and all individuals or entities or successors in interest thereof lending money or extending credit (including any financing lease) to Seller for (i)construction, term, or permanent financing or refinancing of the Project (or the Alternate Project); (ii)worldng capital or other ordinary business requirements of the Project (including maintenance, repair, replacement,o r i mprovement o f the P roject o r of the A Itemate P roject); Fo�tted (iii)ahy-developmentfinancing,bridge financing;-credit suppom-credit-enhancemem;or interest 10 LANG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PordnO.1418531.16 0058892-00027 082 rate protection in connection with the Project(of the Alternate Project); or(iv)the purchase of a 100 percent interest in the Project(or the Alternate Project)and the related rights from Seller. "S&P" shall mean Standard & Poor's Rating Group (a division of McGraw-Hill, Inc.) and any successor thereto. "Subordinate Debt" shall mean any Debt that is subordinate in right of payment to the unsecured and unsubordinated Debt of the Person or its Subsidiaries and to the obligations of such Person arising under this Agreement. "System Emergency" shall mean a condition on transmission facilities (as declared by the Transmission Provider)used to deliver the Delivered Energy to the Purchaser at the Delivery Point, which condition is likely to result in imminent significant disruption of service to customers or is imminently likely to endanger life or property. "Taxes" means all ad valorem, property, occupation, utility, gross receipts, sales, use, excise, and other taxes, govemmental.charges, surcharges, licenses,permits, and assessments of every type and description,other than taxes imposed on the net income of the taxpayer. "Technical Requirements"shall mean those codes, standards,and specifications for the Meters that the Parties shall mutually agree upon in writing, including, without limitation, bi- directional measurement capabilities. "Term"shall have the meaning set forth in Article 2. "Total Consolidated Capitalization"of a Person at any date means the sum of(a)all of the Debt of the Person and its Subsidiaries (other than Subordinated Debt) and any Debt consisting of an obligation to pay the deferred purchase price of capital stock of an Affiliate),(b) preferred s tock o f t he P erson o r a ny o f i is Subsidiaries,a nd (c) common s tock a quity o f t he Person, all determined on a consolidated basis in accordance with GAAP as of such date; provided that Qualifying Junior Subordinated Debt, if any, shall be included in Total Consolidated Capitalization only if and to the extent that the inclusion thereof does not cause the aggregate amount of all preferred stock and Qualifying Junior Subordinated Debt to exceed 15% of Total Consolidated Capitalization. Notwithstanding anything in this Agreement to the contrary, for the purpose of calculating "Total Consolidated Capitalization," (a) any Non- Recourse Indebtedness and the specific assets securing such Non-Recourse Indebtedness (to the extent of such Non-Recourse Indebtedness),shall not be taken into account;and(b)the effects of the application of Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities", with respect to unsettled power purchase and power sale contracts of the Person shall be eliminated. "Total Consolidated Debt"of a Person at any date means all Debt of the Person and its Subsidiaries (other than any Qualifying Junior Subordinated Debt, any Subordinated Debt, and any Debt consisting of an obligation to pay the deferred purchase price of capital stock of an Fo"named Affiliate);-as determined-on-a-consolidated-basis--irr-accordance-with-GAAP-w-of-such-date: Notwithstanding anything in this Agreement to the contrary,for the purpose of calculating"Total 11 LANG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PmtlM3-1418531.16 0058892-=7 I 083 Consolidated Debt"(a) any Non-Recourse Indebtedness andthe specificassetssecuringsuch Non-Recourse Indebtedness (to the extent of such Non-Recourse Indebtedness), shall not be taken into account; and (b) the effects of the application of Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities", with respect to unsettled power purchase and power sale contracts of the Person shall be eliminated. "Transmission Provider" shall mean the entity that operates the t ransmission s ystem facilities interconnected with the Project (or with the Alternate Project) or any replacement regional transmission organization or other successor entity. "Transmission Services" shall mean transmission services, wheeling services, ancillary services,control area services,and operating reserves(including all transaction charges,line loss charges, imbalance charges and any other charges for any such services) on Purchaser's side of the Delivery Point. "Transmission System" shall mean the transmission facilities, now or hereafter in existence and operated by the Transmission Provider. "WECC"shall mean Western Electricity Coordinating Council or its successor. ARTICLE 2 TERM AND TERMINATION 2.1 Term. This Agreement shall be deemed effective as of the date on which it has been signed by both Parties (the "Effective Date"). The "Term" of this Agreement shall commence on the E ffective D ate and shall continue until 00:00 hours on the twentieth(20'") anniversary of the first Day of the first Contract Year,and thereafter only for as long as Seller or Purchaser requires to schedule and deliver an amount of energy needed to eliminate any positive or negative MW amounts recorded in the Balancing Account; provided, however, that this Agreement shall continue after such 20" anniversary on a Contract Year by Contract Year basis unless either Party elects to terminate this Agreement by giving notice to the other Party at least one(1) year before the end of the then-current Term(as it may have been extended previously). If a Party gives the other Party timely notice of termination,this Agreement shall continue only until the last day of such Term and thereafter only for as long as Seller or Purchaser requires to schedule and deliver an amount o f energy needed to eliminate any positive or n egative MW amounts recorded in the Balancing Account. For example,if a Party gives notice of termination on or before the 196 anniversary of the first day of the first Contract Year, this Agreement shall continue only until the 20'" anniversary of such date and thereafter only for as long as Seller or Purchaser requires to schedule and deliver an amount of energy needed to eliminate any positive or negative MW amounts recorded in the Balancing Account. The Term of this Agreement shall in any event continue no longer than 00:00 hours on the 25" anniversary of the first Day of the first Contract Year, and thereafter only for so long as Seller or Purchaser requires to schedule and deliver an amount of energy needed to eliminate any positive or negative MW amounts recorded in the Balancing Account. rmmatted --� 12 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Pordnd3-1418531.16 0058892-=7 084 2.2 Filing of Aereement with FERC. If required under Applicable Law,Seller shall file this Agreement with FERC for acceptance pursuant to the Federal Power Act. In making A . any such filing, Seller shall request that, to the fullest extent permitted under Applicable Law, FERC keep the terms and provisions of this Agreement confidential. Purchaser shall cooperate with Seller in filing this Agreement with FERC and requesting such confidential treatment. If FERC's approval of this Agreement is required, either Party may terminate this Agreement by thirty (30)Days prior written notice to the other Party if(a) such approval is conditioned on economically significant modification of this Agreement(unless the Party adversely affected by the modification agrees to it),or(b)FERC rejects this Agreement. 2.3 Right to Terminate Prior to Commercial Operation. (a) The Related Agreements will require Seller to manage acquisition and delivery to the Delivery Point of a forward firm power product— a 15 megawatt hourly block of energy— that is non-standard in the current market. Accordingly,Seller shall have the right upon notice to Purchaser made within one hundred twenty(120)days after all of the Related Agreements have been signed and delivered, to terminate this Agreement if Seller is unable to ensure itself, to its sole satisfaction, that it can manage and hedge such a non-standard product for the Tenn of this Agreement. Neither Party shall be liable for such termination. The Parties acknowledge that Seller may terminate this Agreement pursuant to this Section 2.3(a) even if Seller has commenced deliveries of D elivered Energy before the end o f s uch 120-day p eriod. I f Seller terminates this Agreement pursuant to this Section 2.3(a) after deliveries have commenced,this Agreement shall continue only for as long as Seller or Purchaser requires to schedule and deliver an amount of energy needed to eliminate any positive or negative MW amounts recorded in the Balancing Account. (b) If, as of December 31, 2003 the Commercial Operation Date has not been achieved for the Project(or for the Alternate Project),either Party may terminate this Agreement by thirty(30)Days prior written notice to the other Party. Neither Party shall be liable for such termination. Seller shall provide Purchaser with periodic progress reports not less than quarterly. (c) If as of June 15,2003,Related Agreements with respect to an aggregate of at least 10 aMW(approximately 30 MW of Installed Capacity)have not been signed and delivered to Seller,Seller may terminate this Agreement by giving thirty(30)Days prior written notice to the other Party. Neither Party shall be liable for such termination. 2.4 Designation of Alternate Proiect. Seller is not required to designate an Alternate Project. However, in its sole discretion, Seller may designate an Alternate Project by giving prior written notice to Purchaser on or after October 2,2006(with such designation to be effective ninety (90) days after the date of Seller's notice). Thereafter, Seller may designate a different Alternate Project no more often than once every three years (measured from the Effective Date)by giving at least ninety(90) Days' prior written notice to Purchaser. If Seller designates an Alternate Project, it shall supplement Exhibit A to describe the Alternate Project in a manner consistent with Exhibit A. Notwithstanding the foregoing, (a) Seller may not - desi ate aAlternate.Alteate Project that includes Installed Capacity located outside the state of------ Po,matoed --� California until after October 2,2006, and(b)at any given time during the Term at least 70%of 13 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Ponln,13-14 t 8531.16 0058892-00027 00tz I the Installed Capacity subject to this Agreement shall be located in California; provided, however, that if at any time during the Term applicable California law requires the Purchaser to buy some or all of its renewable energy or environmental attributes from sources located within California, Seller shall have 365 days from the date on which such law takes effect in which to reconfigure the Alternate Project so that 100% of the Installed Capacity subject to this Agreement is located in California. If Seller is unable to do so within such period despite commercially reasonable efforts, either Party may terminate this Agreement upon thirty (30) Day's prior written notice to the other. Neither Party shall be liable for such termination. Notwithstanding the foregoing, neither Party shall have a right to terminate this Agreement if any applicable California law declares after the Effective Date that wind energy generally or that wind energy designated as being subject to this Agreement is for any other reason no longer a qualifying source of renewable energy and environmental attributes. 2.5 Survival of Provisions. The obligations of Seller, Purchaser and Purchaser Guarantor to pay any moneys due hereunder, as well as Sections 4.2(e), 6.3, 6.4, Articles 9, 10, 13 and 14 of this Agreement shall survive the expiration of the Term or any termination of this Agreement. ARTICLE 3 PURCHASE AND SALE 3.1 Purchase and Sale of Delivered Enerev. 3.1.1 Enerev Delivery. In accordance with the terms and conditions hereof, commencing on the Commercial Operation Date and continuing throughout the Term, Seller shall sell and deliver at the Delivery Point, and Purchaser shall purchase and accept from Seller at the Delivery Point, all of the Delivered Energy. Commencing with the later of (i) the Commercial Operation Date;or(ii)July 1,2003,Seller shall over the Term deliver an amount of Delivered Energy equal to the amount of Metered Output, in the manner set out in Section 4. Delivered Energy that is delivered at the Delivery Point shall be deemed delivered to Purchaser for purposes of this Agreement. 3.1.2 Sources of Electric Energy and Environmental Attributes. Purchaser expressly acknowledges that (a) Seller may obtain electric energy for delivery at the Delivery Point from market purchases or from any other source or sources or combination thereof as determined by Seller in its sole discretion, and (b) Seller is not required to transmit electric energy from the Project or Alternate Project to the Delivery Point;provided, however, that Seller shall be required to deliver, or otherwise provide to Purchaser,Environmental Attributes directly from the Project or an Alternate Project at the time of production, with such delivery to he accomplished by Seller's monthly delivery of the attestation attached as Exhibit C in accordance- ----- Wm tted —� -------------------- with Section 3.2.3. 3.2 Environmental Attributes. 3.2.1 Purchase and Sale of Environmental Attributes. ----- Formatted —� 14 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Por0nd3-1418531.16 0058892-00027 ` 086 Subject to Section 14.16 (Force Majeure), for and in consideration of Purchaser's agreement to purchase from Seller the Delivered Energy on the terms and conditions set forth herein,Seller shall sell to Purchaser, and Purchaser shall purchase from Seller,all right,title,and interest in and to all Environmental Attributes, if any,whether now existing or acquired by Seller or that hereafter come into existence or are acquired by Seller during the Term, for an undivided share of the output of the Project or the Alternate Project equal to the Metered Output. Seller agrees to sell and make such Environmental Attributes available to Purchaser immediately to the fullest extent allowed by applicable law upon Seller's obtaining the Environmental Attributes. Seller shall not assign,transfer, convey,encumber,sell or otherwise dispose of all or any portion of such Environmental Attributes to any Person other than Purchaser. Seller makes no written or oral representation or warranty, either express or implied, regarding the current or future existence of any Environmental Attributes. 3.2.2 Reporting of Ownership of Environmental Attributes.- During the Term, Seller shall not report to any person or entity that the Environmental Attributes granted hereunder to Purchaser belong to anyone other than Purchaser, and Purchaser may report under any such program that such Environmental Attributes purchased hereunder belong to it. 3.2.3 Further Assurances. Seller will document the production of Environmental Attributes under this Agreement by delivering with each invoice to Purchaser an attestation for Environmental Attributes produced by the Project or Alternate Project in the preceding calendar month. The form of attestation is set forth as Exhibit C. At Purchaser's request and expense, the Parties shall execute all such documents and instruments in order to effect transfer of the Environmental Attributes specified in this Agreement to Purchaser or its designees as Purchaser may reasonably request. In the event of the promulgation of a scheme involving Environmental Attributes administered by CAMD, upon notification by CAMD that any transfers contemplated by this Agreement will not be recorded, the Parties shall promptly cooperate in taking all reasonable actions necessary so that such transfer can be recorded. Each Party shall promptly give the other copies of all documents it submits to the CAMD to effectuate I any transfers. 33 Contract Rate. During the period from and including the Commercial Operation Date through the remainder of the Term, Purchaser shall pay the Seller $53.50 per Mwh of Delivered Energy (the "Contract Rate") . The Contract Rate shall be the total compensation owed by Purchaser for such Delivered Energy and for the Environmental Attributes related to the Metered Output. 3.4 No Change in Rates. No change may be made to the rates, terms or conditions of this Agreement at the request of any Party, or by FERC acting sua sponte on behalf of any Party,except as required by FERC in the public interest. To that end,each party waives any and all rights to seek changes to the rates,terms and conditions contained in this Agreement pursuant to sections 205 or 206 of the Federal Power Act or otherwise. ARTICLE 4 BASE SCHEDULE:BASE SCHEDULE ADJUSTMENTS Fonnatte0 ---� 15 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Por W X63-1418531.16 0058892-M7 i ii I i 087 4.1 Base Schedule. During each month of the Term,commencing with the later of(i) the Commercial Operation Date; or(ii) July 1, 2003, Seller shall schedule on a daily basis, and Purchaser shall take, at the Delivery Point, a Base Schedule of Delivered Energy, with adjustments as set forth in Section 4.2. Prior to the Section 4.2 adjustments, the Base Schedule shall be a flat delivery of the Average Annual Capacity in every hour. Delivered Energy shall be firm and may be considered "firm energy" by Purchaser in accordance with the WECC Minimum Operating Reliability Criteria,subject to Force Majeure. Deleted:;nroWded,newe a thu it there is any conflia with the W ECC Mmimmn Operating Reliability Criteria, 4.2 Base Schedule Adjustments. In order that over the Term, the amount of 'i. the definition of Delivered Energy shall equal the amount of Metered Output,and subject to Section 14.16(Force Deleted:nrthir Agreement shall] Majeure),the Base Schedule shall be subject to the following adjustments: con"] InWiled:;povidad,h..,,,that if a All differences bDelivered Ed Metered Output in hour, then is any conflict with the WECC ( ) between Energy antPn each Minimum Operating Reliability Criteria, commencing with the Commercial Operation Date and continuing until 0000 hours on the last the defmition of day of the Term shall be accumulated in a Balancing Account. Any hourly generation of Insetted:nfthir Agreement:ball Metered Output that is in excess of the amount of Delivered Energy provided in any hour shall COntrol be accumulated as a positive deviation in the Balancing Account, and any hourly generation of Metered Output that is less than the amount of Delivered Energy provided in any hour shall be accumulated as a negative deviation in the Balancing Account. Purchaser shall be provided by the tenth (10th) day of each calendar month during the Term with a statement of the balance in the Balancing Account through the end of the immediately preceding calendar month. (b) In each of Contract Years two (2) through the end of the Term, if the accumulation in the Balancing Account as of 2400 hours on December 31 of the immediately preceding Contract Year is a positive number, the Base Schedule shall be adjusted upward in each hour by LYJ (__) MW in each hour, commencing with the hour beginning at 0000 hours on February 1, and continuing until Seller has provided an amount of additional Delivered Energy in such LY_J (__) MW increments most nearly equal to such positive balance in the Balancing Account. An example of this adjusted Base Schedule is shown in Exhibit D. (c) In each of Contract Years two (2) through the end of the Term, if the accumulation in the Balancing Account as of 2400 hours on December 31 of the immediately preceding Contract Year is a negative number,the Base Schedule shall be adjusted downward in each hour by LYJ (__)MW in each hour, commencing with the hour beginning at 0000 hours on February 1, and continuing until Seller has removed Base Schedule of Delivered Energy in such LY, (__)MW increments in an amount most nearly equal to such negative balance in the Balancing Account. An example of this adjusted Base Schedule is shown in Exhibit D. (d) Any positive or negative amounts in the Balancing Account as of the earlier of the termination of this Agreement or 0000 hours on the last day of the Term shall be scheduled by Seller to Purchaser (if the amount is positive), or by Purchaser to Seller (if the amount is negative),and in each case,priced at the Contract Rate,commencing at 0001 hours of the second calendar month following such last day of the Term, as follows: (a) At the rate of LYJ U MW per hour,until the positive or negative amount in the Balancing Account is reduced to less leennauxd than LY,C:L)MW;and(byin-the-next schedule hutrr ircanarcrourt(to the nearesrwhtsle MW)" necessary to bring the Balancing Account amount to zero(0). 16 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Porthaf 3-1418531.16 00588924=7 088 (e) Any reduction in the Base Schedule due to a Force Majeure Event or a System Emergency that prevents or reduce deliveries of Delivered Energy at the Delivery Point shall be accumulated and netted against other differences between Metered Output and Delivered Energy. 4.3 Scheduling Practices. In scheduling and accepting deliveries of Delivered Energy at the Delivery Point, the Parties shall adhere to scheduling procedures consistent with the CAISO's Scheduling Coordinator to Scheduling Coordinator (SC to SC) protocols for day- ahead scheduling. The authorized representatives of the Parties shall develop procedures as necessary to account for changes to CAISO protocols. ARTICLE 5 BILLING AND PAYMENTS 5.1 Billing a nd P avment. Billing and payment for the Delivered Energy and all associated Environmental Attributes sold and purchased under this Agreement and any other amounts due and payable hereunder shall be as set forth in this Section 5.1. 5.1.1 Calculation of Delivered Energy: Invoices and Payment. For each calendar month during the Term, commencing with the first calendar month in which Delivered Energy is scheduled by Seller to Purchaser in accordance with the terms of this Agreement, Seller shall calculate the amount of Delivered Energy and associated Environmental Attributes delivered to Purchaser during such calendar month pursuant to this Agreement. Not later than the tenth (10th) Day of each calendar month (commencing with the calendar month next following the calendar month in which Delivered Energy is first provided by Seller to Purchaser in accordance with the terms of this Agreement), Seller shall deliver to Purchaser a proper invoice showing the amount of such Delivered Energy and associated Environmental Attributes during the immediately preceding calendar month and Seller's computation of the amount due i Seller in respect thereof. Not later than the later to occur of the following(herein called the"Due Date"): i (i) the twentieth (20 h) Day of the calendar month immediately following the calendar month to which Seller's invoice relates(or the next succeeding Business Day,if such twentieth Day is not a Business Day);or (ii) the tenth(10t)Day after receipt by Purchaser of Seller's monthly invoice (or the next succeeding Business Day,if such tenth Day is not a Business Day); Purchaser shall pay to Seller, by wire transfer of immediately available funds to an account specified in writing by Seller or by any other means agreed to by the Parties in writing from time to time,the amount set forth as due in such monthly invoice. 5.1.1.1 Invoicing and Payment Following Purchaser's Election to PrevaAfter,Downgrade Event. Upon the occurrence of a Downgrade Event with respect to_------ rvr tted --�---� Purchaser and Purchaser's election to proceed under Section 5.3.2(1)hereof, Purchaser shall be 17 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PonIM3-1418531.16 0058892-00027 089 required to pay for Delivered Energy and all associated Environmental A tttibutes monthly in advance as provided in this Section 5.1.1.1. Seller and Purchaser shall cooperate with one another in order to convert to such advance monthly billing and payment as quickly as possible (but in no event later than the first day of the calendar month next following the month in which the Purchaser Downgrade Event occurred). For each calendar month during the Term in which the provisions of this Section 5.1.1.1 applies, Seller shall calculate the amount of Delivered Energy and associated Environmental Attributes to be delivered to Purchaser during such calendar month pursuant to this Agreement. Not later than the fifteenth(15th)Day of each calendar month,Seller shall deliver to Purchaser a proper invoice showing the amount of Delivered Energy and associated Environmental Attributes to be delivered to Purchaser hereunder during the immediately succeeding calendar month and Seller's computation of the amount due Seller in respect thereof. Not later than the later to occur of the following(herein called the"Due Date"): (i) the last Day of the calendar month immediately preceding the calendar month t o w hich Seller's i nvoice relates (or the n ext succeeding Business Day, if such twentieth Day is not a Business Day);or (ii) the tenth (10th)Day after receipt by Purchaser of Seller's monthly invoice (or the next succeeding Business Day,if such tenth Day is not a Business Day); Purchaser shall pay to Seller, by wire transfer of immediately available funds to an account specified in writing by Seller or by any other means agreed to by the Parties in writing from time to time,the amount set forth as due in such monthly invoice. 5.1.2 Disputed Invoices. In the event of a disputed invoice,Purchaser shall pay the full amount of the disputed invoice when due, without prejudice. Purchaser may dispute invoice amounts as provided herein by giving Seller notice of the alleged errors along with Purchaser's p ayment o f the d isputed i nvoice. If S eller notifies P urchaser that Seller disagrees with the allegation of error in the invoice,the Parties shall meet,by telephone conference call or otherwise, within five (5) Business Days of Seller's response for the purpose of attempting to resolve the dispute. If the Parties are unable to resolve the dispute within thirty(30)Days after such initial meeting, either Party may immediately invoke the dispute resolution processes of Article 10. If the Seller is found to be in error, Seller will refund to Purchaser the amount that Purchaser paid in excess of the amount that Purchaser actually owed plus interest on such excess payment from the date the same was paid by the Purchaser to (but not including) the date the refund thereof is actually received by the Purchaser from the Seller, such interest to be at an annual rate equal to the Prime Rate in effect as of the date such payment was made by Purchaser plus 2 percent(but in no event shall such interest exceed the maximum interest rate permitted by Applicable Law). 5.1.3 Setoffs and Deductions. All payments hereunder shall be made without -- Formarred —� set-d or deduction;provided,however, If a Party sutlers an Event of Default,the non-defaultin 18 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Porand3-1118531.16 0058892-00027 090 i Party shall have the right to set off any amount due to the defaulting Party under this Agreement against any amount due to the non-defaulting Party under this Agreement as a result of such default. 5.1.4 Interest on Past Due Amounts. Any payment not made within the time limits specified in this Section 5.1 shall bear interest from the Due Date of such payment through (but not including)the date such payment is actually received by Seller or Purchaser,as the case may be. Such interest shall accrue at an annual rate equal to the Prime Rate then in effect plus 2 percent (but in no event shall such interest exceed the maximum interest rate permitted by Applicable Law). 5.1.5 Form and Transmittal of Invoices. Statements or invoices shall be sent to Purchaser by mail or facsimile to the address or facsimile number designated in Section 7.1. Purchaser m ay change the a ddress or facsimile n umber b y providing written notice to Seller. The invoice shall be in a form reasonably acceptable to both Seller and Purchaser. 5.2 Title and Risk of Loss.Title to and risk of loss of Adjusted Metered Output and Environmental Attributes sold to Purchaser by Seller in accordance with this Agreement shall pass from Seller to and rest in Purchaser as follows: 5.2.1 Environmental Attributes. At time of production based on Metered Output. 5.2.2 Delivered Energy. When the Delivered Energy is delivered to Purchaser at the Delivery Point. 5.3 Credit Support. 5.3.1 Seller's Guarantor. (a) Delivery of Guaranty. Seller shall cause Seller's Guarantor to execute j and d eliver t o P urchaser a guaranty i n favor of Seller, under t he t erms of which t he S eller's I Guarantor unconditionally guarantees the full and prompt payment of Seller's obligations under this Agreement. Such guaranty from the Seller's Guarantor shall be in the form attached hereto as Exhibit B and shall be executed and be delivered to the Seller by the Seller's Guarantor no later than the date that definitive documentation is executed and delivered for the financing(both debt and equity) of the construction and operation of the Project (or the Alternate Project). Notwithstanding any other provision of this Agreement, the aggregate liability of Seller's Guarantor under any guaranty (or series of guaranties) shall not exceed $50,000 per MW of Installed Capacity subject to this Agreement (b) Downgrade Event. If at any time there shall occur a Downgrade Event with respect to the Seller's Guarantor (or the Seller, if Seller has previously met the Credit Requirements), then the Purchaser may,by notice in writing to the Seller, require the Seller to provide Additional S ecurity t o P urchaser. If Seller fails to provide s uch Additional S ecurity --� within fifteen(15)-Business Days-of-the receipt-of-such notice-from the-Purchaser;then an Event- of Default shall be deemed to have occurred pursuant to Section 8.1(e)hereof. 19 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PoNnd3-1418531.16 0058892-00027 091 5.3.2 Purchaser's Credit Support. Purchaser shall notify Seller in writing of the occurrence of any event which, with notice or the passage of time or both,would constitute a Downgrade Event with respect to the Purchaser,.which notice shall be given by Purchaser within 24 hours of the occurrence of such event. If at any time there shall occur a Downgrade Event with respect to Purchaser, then the S eller may,b y n otice i n writing to the Seller, require the Purchaser to either: (1) provide Additional Security to Seller; or(2) pay for Delivered Energy and all associate Environmental Attributes in advance of the delivery thereof to the Purchaser as provided in Section 5.1.1.1 above. Within five(5)Days of the receipt of such notice from Seller, Purchaser shall advise Seller in writing as to whether it elects to proceed under(1) or(2) of this Section 5.3.2. If Purchaser elects to proceed under(1) of this Section 5.3.2 and fails to provide such Additional Security within fifteen(15)Business Days of the receipt of such notice from the Seller, then an Event of Default shall be deemed to have occurred pursuant to Section 8.1(e) hereof. 53.3 Cash As Additional Security. If such Additional Security consists of cash, the escrow agreement with the applicable Custodian (to which the Seller, the Seller's Guarantor, if any, and the Purchaser shall be parties) shall provide that all interest and investment proceeds with respect to such cash shall accrue for the benefit of Party posting the Additional Security and shall b e p aid to that P arty monthly. T he fees and expenses of s uch Custodian shall be paid by the Party posting the Additional Security. At the other Party's request, the Party posting Additional Security shall grant to the other Party a valid, first priority security interest i n the posting P arty's i nterest i n the escrow a greement contemplated by this provision and shall take such other steps as may be reasonably required to protect the cash against the bankruptcy of the posting Party. 5.4 Allocation of Taxes. Seller shall pay or cause to be paid all Taxes on or with respect to the Project(or the Alternate Project) or on or with respect to the delivery and sale of Delivered Energy and/or Environmental Attributes to the Purchaser that are imposed before the delivery of Delivered Energy at the Delivery Point and prior to transfer to Purchaser of the i Environmental Attributes. Purchaser shall pay or cause to be paid all Taxes, if any, on or with t respect to the delivery and sale of Delivered Energy and/or Environmental Attributes to the Purchaser that are imposed after the delivery of the Delivered Energy to the Purchaser at the Delivery Point and on or after transfer to Purchaser of the Environmental Attributes. If a Party is required to remit or pay Taxes that are the other Party's responsibility hereunder,such Parry shall promptly reimburse the other for such Taxes. Both Parties shall use reasonable efforts to administer this Agreement and implement the provisions in accordance with their intent to minimize Taxes. In the event any of the sales of Delivered Energy or Environmental Attributes hereunder are exempt from or not subject to any particular Tax(es), the Purchaser shall provide Seller with all necessary documentation required to evidence such exemption or exclusion within the time period required by Applicable Law. In the event Purchaser does not provide such documentation, then Purchaser shall indemnify, defend, and hold Seller harmless from any liability with respect to Taxies)from which Purchaser claims it is exempt or excluded. 5.5 Financial Statements. Each Parry shall provide the other Party with copies of its most recent.financial.statements.on or.before-January-31_ofeach.year during theTerm._AParty._-- .--annnatted may deliver unaudited financials in satisfaction of this requirement,as long as audited financials 20 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Pord d3-1418531.16 0058892-00027 092 are produced in the ordinary course and promptly delivered as soon as they are available. In addition, each Party shall promptly provide to the other Party financial statements and other financial information reasonably requested by such other Party for the purposes of this Agreement and the Seller's guaranty. If a Party does not provide such information within ten (10) days of a request,the requesting Party may send a written notice demanding the delivery of such information in accordance with this Section. If the requested information is not delivered within the thirty(30) day period, or if the Party to which the notice is directed is not otherwise able to show that a Downgrade Event has not occurred, the Party demanding such information shall be entitled to assume that a Downgrade Event has occurred. All such financial information will be treated as confidential information subject to Section 14.10 of this Agreement. ARTICLE 6 MEASUREMENT AND METERING 6.1 Metering Equipment. Pursuant to the Project PPA,Seller shall cause the Project Owner or the Transmission Provider to provide, install, own, operate, and maintain all metering and data processing equipment needed for the registration, recording, and transmission of information regarding the Metered Output generated from the wind turbines at the Project(or the Alternate Project). Project Owner's Meters and data processing equipment shall meet or exceed the Technical Requirements. Project Owner (or the Transmission Provider) may elect to install Project Owner's Meters on the low side of the transformer immediately prior to the Delivery Point; provided, however, that the Project Owner's Meters shall be adjusted to account accurately for substation transformer losses to Purchaser's reasonable satisfaction(so that the amount paid for Metered Output will not include such losses). 6.2 Measurements. Readings of Project Owner's Meters shall be conclusive as to the amount of Metered Output delivered under this Agreement;provided, however, that if any of Project Owner's Meters is out of service or is determined, pursuant to Section 6.2 hereof, to be registering inaccurately, measurement of Metered Output delivered hereunder shall be determined in the as follows and in the order indicated: (a) First,if any other meters meeting applicable Technical Requirements have been installed and are operational, measurement of Metered Output delivered hereunder shall be by such meters;and (b) Second, measurement of Metered Output shall be made using a mathematical calculation agreed upon by the Parties to adjust the output thereof to account for electrical losses in the gathering system and wind turbine transformers and substation transformers up to the point at which project output is metered. If, for purposes of this Section 6.2, the Parties cannot agree on the actual period during which Project Owner's Meters were registering inaccurately, the period to be used for purposes of this Section 6.2 shall be one-half of the period from the date of the last previous test of the Project Owner's Meters through the date of the test that found Project Owner's Meters to be maccprate, but in no event more than one hundred and eighty (180- Days from the date of the_------ Foa tted last previous test of such the Project Owner's Meters. 21 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Pond d3-1118 5 3 1.16 0058892-00027 1 093 6.3 Testine and Correction. 6.3.1 Required Testine. S eller shall use commercially reasonable efforts to cause the Project Owner or the Transmission Provider to test and verify the accuracy of Project Owner's Meters at least annually and at Project Owner's expense. Such annual testing and verification shall be performed within thirty(30)Days of the beginning of each Contract Year by a third party selected by Project Owner or Transmission Provider and approved in writing by Purchaser. In addition, at Project Owner's or the Transmission Provider's option, the accuracy of Project Owner's Meters may be tested and verified at Project Owner's expense at intervals between each a nnual t est. Seller shall give t o Purchaser a t I east t en (10) Days prior written notice of the date upon which any such test is to occur. Seller shall use commercially reasonable efforts to cause the Project Owner or the Transmission Provider to prepare a written report setting forth the results of each such test and to provide Purchaser with copies of such written report not later than thirty(30)Days after completion of the test. 6.3.2 Standard of Meter Accuracy Resolution of Disputes as to Accuracy. Each Meter shall be accurate within a one-half percent (0.5%) variance. The following steps shall be taken to resolve disputes regarding the accuracy of the Owner's Meters: (a) If either Party disputes a Meter's accuracy or condition, it shall so advise the other Party in writing. (b) If the Parties are unable to resolve reach consensus as to the Meter's accuracy or condition through reasonable negotiations,then either Party may submit such dispute to an unaffiliated third-party engineering company mutually acceptable to the Parties to test the Meter. Seller shall arrange for such testing with the Project Owner or the Transmission Provider. (c) Should the Meter be found to register within the permitted one-half i percent(0.5%) variance, the disputing Party shall bear the cost of inspection; otherwise, the cost shall be home by the Seller. (d) Any repair or replacement shall be made at the expense of the Seller as soon as practicable,based on the third-party engineer's report. (f) Following testing,corrections shall be made as follows: (1) If any Meter is found to be accurate or to be in error by not more than the permitted one-half percent (0.5%) variance,previous recordings of such Meter shall be considered accurate in computing Metered Output hereunder, and such Meter shall be promptly adjusted to record correctly. (2) If any Meter is found to be in error by an amount exceeding the one-half percent(0.5%) variance, then such Meter shall be promptly adjusted to record correctly, any previous recordings by such Meter shall be adjusted in —� `---- ----accordance with-Section 6.2-hereof;-and thehourly amounts-of Metered-Output r°nnatted 22 LANG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PonM-1418531.160058M ODD7.7 094 accumulated in the Balancing Account shall be modified by the amount of such adjustment. 6.4 Maintenance of Records. Seller shall keep complete and accurate records, and shall maintain such data as may be necessary for the purpose of ascertaining the accuracy of all relevant data, estimates, or statements of charges submitted hereunder for a period of two (2) years from the delivery date of the invoice associated with such data, estimates or statements of charges. 6.5 Rieht To Audit. 6.5.1 Audit Riehts. Purchaser shall have the right, upon reasonable notice to Seller and during Seller's regular business hours and without unduly interfering with the conduct of Seller's business,to access all of Seller's records pertaining to invoices under this Agreement to audit the reports, data, calculations and invoices that Seller must provide to Purchaser under this Agreement. Purchaser shall bear Purchaser's costs of performing such audit; provided, however, that Seller agrees to cooperate with such audit and shall not charge Purchaser for any reasonable costs(including without limitation the cost of photocopies)that Seller may incur as a result of such audit. Purchaser shall have eighteen(18)months from the date on which a billing statement is received to audit and to challenge that billing statement. 6.5.2 Refunds of Overpayments and Underpayments. Should the audit discover a billing error or errors that resulted in an overpayment by Purchaser, the Seller shall refund to the Purchaser the amount of the overpayment plus interest thereon from the date such overpayment was made by Purchaser to (but not including) the date the Purchaser actually receives the refund thereof f rom the S eller,s uch interest to be at manual rate equal to the Prime R ate i n e ffect on the d ate such o verpayment was made b y Purchaser plus two percent (2%), but not to exceed the maximum interest rate permitted by Applicable Law. Should the audit discover a billing error or errors that resulted in an underpayment by Purchaser, the Purchaser shall pay to the Seller the amount of the underpayment plus interest thereon from the Due Date thereof to(but not including)the date the Seller actually receives the payment thereof from the Purchaser, such interest to be at an annual rate equal to the Prime Rate in effect on the date such underpayment was made by Purchaser plus two percent (2%), but not to exceed the maximum interest rate permitted by Applicable Law. ARTICLE 7 NOTICES 7.1 General. Any notice required, permitted, or contemplated hereunder shall be in writing, shall be addressed to the Party to be notified at the address set forth below or at such other address or addresses as a Party may designate for itself(and for its Default Notice Parties) from time to time by notice hereunder: To Seller: Manager,Middle Office PPM Energy,Inc. rormatted ---� I 650 NZ;Holladay,Siiite 700 ------ 23 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Ponlnd3-1418531.16 00588924=7 995 I Portland,OR 97232 Phone:(503)813-5763 Fax: (503)813-5722 To Purchaser: [XXX] Phone: Fax: Each notice required, permitted, or contemplated hereunder shall be deemed to have been validly served,given or delivered as follows: (a) if sent by United States mail with proper first class postage prepaid, five (5)Business Days following the date of the postmark on the envelop in which such notice was deposited in the United States mail; (b) if sent b y a regularly s cheduled overnight delivery c arrier w ith delivery fees either prepaid or an arrangement with such carrier made for the payment of such fees, the next Business Day after the same is delivered by the sending Party to such carrier; (c) if sent by fax and if concurrently with the transmittal of such fax the sending Party contacts the receiving Party at the phone number set forth above to indicate such fax has been sent(which indication by phone may be done by leaving a voicemail for the receiving Party at such phone number), at the time such fax is transmitted by the sending Party as shown by the fax transmittal confirmation of the sending Party;or (d) if delivered in person,upon receipt by the receiving Party. ARTICLE 8 DEFAULTS AND REMEDIES 8.1 Events of Default. Each of the following shall constitute an "Event of Default" hereunder: (a) a failure by a Party to pay any amount due hereunder(including without limitation in the case of the Purchaser,the failure to pay when due any advance monthly payment that may become owing under Section 5.1.1.1 hereof, or in the case of Seller, failure to pay an amount due pursuant to Section 8.7 resulting from a failure to deliver energy or Environmental Attributes as required by this Agreement), if such failure is not cured within ten (10) Days of the date on which the nondefaulting Party sends notice of the default to the Default Notice Parties by payment of the amount due plus interest at an annual rate equal to the Prime Rate then in effect plus two hundred basis points from the date due until paid; Formatted 24 LANG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PonhW4418531.16 W58892-0=7 096 (b) any other material default (other than a default that, with notice and the passage of time or both,would constitute an Event of Default under Section 8.1(c),(d)or (e) hereof) if such default has not been cured by the defaulting Party within sixty (60) Days after the date of receipt by the Default Notice Parties of written notice from the nondefaulting Party setting forth,in reasonable detail,the nature of such material default; provided that in the case of a material default that is not reasonably capable of being cured within the 60-Day cure period, the defaulting Party shall have additional time to cure the default if it commences to cure the default within such 60-Day cure period, it diligently pursues such cure, and such default is capable of being cured by the defaulting Party and is in fact cured within no more than 180 Days after receiving such notice; provided further that: (i) the defaulting Party shall not be relieved of its duty to pay amounts due under this Agreement during the cure period, whether the amount due arises from the default or otherwise;and (ii) if the nondefaulting Party suffers damages under this Agreement because of the other Party's material default, the nondefaulting Party shall be entitled to recover damages under this Agreement regardless of whether the other Party thereafter cures the default; (c) the commencement of involuntary bankruptcy,insolvency,reorganization, arrangement, composition, readjustment,liquidation,dissolution,or similar proceeding (whether under any present or future statute,law,or regulation)with respect to any Party, including the involuntary appointment of any trustee, receiver, custodian, or the like of such entity or all or any substantial part of its assets, and such proceeding has not been terminated or dismissed with ninety (90) Days after the commencement thereof, or the commencement of voluntary bankruptcy, insolvency, reorganization, arrangement, composition,readjustment, liquidation, dissolution, or similar proceeding(whether under any present or future statute, law, or regulation) with respect to any Party, including the appointment, with the consent or acquiescence of the affected Party, of any trustee, receiver,custodian,or the like of such entity or all or any substantial part of its assets;or (d) the occurrence of a Downgrade Event with respect to the Seller or Seller's Guarantor and the failure of Seller or Seller's Guarantor to provide to the Purchaser Additional Security w ithin the time r equired and i n the stated amount p rovided for i n Section 5.3.1(b);or (e) the occurrence of a Downgrade Event with respect to Purchaser under circumstances where the Purchaser thereupon elects to proceed under Section 5.3.2(1) hereof and the failure of Purchaser either(i)to provide to the Seller Additional Security within the time required and in the stated amount provided for in Section 5.3.1(6),or(ii) to cause this Agreement to be assigned to and assumed by one or more Persons that is a party to a Related Agreement and that meets the Credit Requirements within fifteen(15) Days after the occurrence of a Downgrade Event. -----------__----------- wrmatted 25 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] P"dnd3-1418531.16 0058892-00027 097 As used herein, the term "Default Notice Parties" means: (i) in the case of a default by the Seller, the Seller and the Seller Lender(if any); and(ii)in the case of a default by the Purchaser, the Purchaser and the Purchaser Lender(if any). Notwithstanding anything expressed or implied herein to the contrary: (i) upon the occurrence of a default by Seller, Purchaser shall give any notice of such default to each of the Default Notice Parties;provided that Purchaser shall only be required to give such notice to Seller Lender if,prior to the occurrence of such default, Seller or Seller Lender has provided to the Purchaser written notice of the address,phone number and fax number to which notices to the Seller Lender are to be sent; (ii) upon the occurrence of a default by Purchaser,Seller shall give any notice of such default to each of the Default Notice Parties;provided that Seller shall only be required to give such notice to Purchaser Lender if, prior to the occurrence of such default, Purchaser or Purchaser Lender has provided to the Seller written notice of the address, phone number and fax number to which notices to the Purchaser Lender are to be sent. 8.2 Riehts Upon Event of Default. Upon the occurrence of an Event of Default by a Party and after any cure period applicable to such Event of Default as provided in Section 8.1, the nondefaulting Party shall have the following rights: (a) to terminate this Agreement by written notice to the other Party; (b) to suspend performance of its obligations and duties hereunder upon written notice to the defaulting Party;and (c) to pursue any other remedy given under this Agreement or now or hereafter existing at law or in equity or otherwise,including but not limited to recovery,of all damages caused by the breach of this Agreement;provided,however, that a dispute as to whether an Event of Default has occurred shall be resolved pursuant to the Dispute Resolution provisions of this Agreement. 8.3 Cure Riehts of Seller Lender and Purchaser Lender. Notwithstanding anything expressed or implied herein to the contrary: (a) in the case of an Event of Default by Seller,Purchaser shall provide Seller Lender(if any)with: (1) notice of such Event of Default; (2) if such Event of Default is a payment default arising under Section 8.1(a), ten (10) Days from the date notice of such default is delivered to Seller Lender to cure such Event of Default;and rom rt d 26 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] •Por&0-1418531.16 0058892-00027 098 (3) if such Event of Default arises under Section 8.1(b) or(c), ninety (90)Days from the date notice of such default is delivered to Seller Lender to cure Event of Default, or in the case of an Event of Default under Section 8.1(b) or(c) that is not reasonably capable of being cured within such ninety (90)-Day cure period, the Seller Lender shall have additional time to cure such Event of Default if it commences to cure the Event of Default within such ninety(90)-Day cure period, it diligently pursues such cure, and such default is capable of being cured by Seller Lender and is in fact cured within no more than one hundred eighty(180)Days after receiving such notice;and (4) if such Event of Default arises under Section 8.1(e), ten (10) Days from the date notice of s uch default is delivered to Seller L ender t o c ure such Event of Default (b) in the case of an Event of Default by Purchaser, Seller shall provide Purchaser Lender(if any)with: (1) notice of such Event of Default; (2) if such Event of Default is a payment default arising under Section 8.1(a),ten(10)Days from the date notice of such default is delivered to Purchaser Lender to cure such Event of Default;and (3) if such E vent o f D efault a rises under Section 8.1(b), ninety (90) Days from the date notice of such default is delivered to Purchaser Lender to cure Event of Default, or in the case of an Event of Default under Section 8.1(b)that is not reasonably capable of being cured within such ninety (90)-Day cure period, the Purchaser Lender shall have additional time to cure such Event of Default if it commences to cure the Event of Default within such ninety(90)-Day cure period, it diligently pursues such cure, and such default is capable of being cured by Purchaser Lender and is in fact cured within no more than one hundred eighty (180)Days after receiving such notice;and (4) if such Event of Default arises under Section 8.1(d),ten (10)Days from the date notice of such default is delivered to Purchaser Lender to cure such Event of Default Notwithstanding anything expressed or implied herein to the contrary: (i) Seller Lender shall only be entitled to exercise its rights under this Section 8.3 if, prior to the occurrence of default hereunder with respect to which Seller Lender seeks to exercise such rights, Seller or Seller Lender has provided to the Purchaser written notice of the address,phone number and fax number to which notices to the Seller Lender are to be sent;and fttd • ------------(i'r)------Purchaser--Lendershall-only-be-entitled-to-exercise--its-rights-under this--"- " Section 8.3 if, prior to the occurrence of a default hereunder with respect to which 27 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] roAnd3-1418531.16 0058892-00027 099 Purchaser Lender seeks to exercise such rights, Purchaser or Purchaser Lender has provided to the Seller written notice of the address, phone number and fax number to which notices to the Purchaser Lender are to be sent. 8.4 Default under Related Aereement. In entering into this Agreement, Seller is relying on the material understanding that all Related Agreements (including but not limited to this Agreement) shall remain in full force and effect for their respective terms. If any Related Agreement is terminated by Seller because of a default by the purchaser under that Related Agreement(including but not limited to a downgrade event affecting that purchaser, as defined in such agreement), Seller shall have the right, in its sole discretion, to terminate all other Related Agreements (including this Agreement) by giving thirty (30) Days prior notice to Purchaser and the purchasers under the remaining Related Agreements. This right is in addition to and not in lieu of any rights or remedies that Seller may have against the defaulting purchaser under the Related Agreement. If Seller terminates this Agreement pursuant to this Section 8.4, neither Party shall have any liability to the other under this Agreement after the date of termination, except for the final invoicing and payment of amounts due under this Agreement with respect to performance rendered in periods before the termination date and final reconciliation of Base Schedule adjustments under Section 4.2. 8.5 Net Out of Payables Upon Termination. Without limiting its remedies under this Agreement,upon termination of this Agreement for default,the Non-Defaulting Party may elect to aggregate all payments due and amounts otherwise owing under this Agreement into a single amount by: netting out(a)all payments and other amounts that are due to the Defaulting Party under this Agreement,plus,at the option of the Non-Defaulting Party,any cash or other form of security then available to the Non-Defaulting Party pursuant to this Agreement,against (b)all payments and other amounts that are due to the Non-Defaulting Party under this Agreement,so that all such amounts shall be netted out to a single liquidated amount(the "Termination Payment")payable by one Party to the other within thirty(30)days of the date on which the Non-Defaulting Party notifies the Defaulting Party of the amount of the Termination Payment. The Termination Payment shall be payable to or from the Non-Defaulting Party,as appropriate. This provision is intended to net only amounts due under the terms of this Agreement,and the Non-Defaulting Party shall under no circumstances be required to account for or otherwise credit or pay the Defaulting Party for economic benefits accruing to the Non- Defaulting Party as a result of the Defaulting Party's default. 8.6 Closeout Setoffs. After calculation of the Termination Payment in accordance with Article 10.6, if the Defaulting Party would be owed the Termination Payment, the Non- Defaulting Party shall be entitled, at its option and in its discretion, to set off against such Termination Payment any amounts due and owing by the Defaulting Party to the Non-Defaulting Party under any other agreements,instruments or undertakings between the Defaulting Party and the Non-Defaulting Party. 8.7 Damaees for Failure to Deliver Energy or Environmental Attributes. If Seller fails to deliver energy or Environmental Attributes as required by this Agreement, Seller shall pay_.Purchaser..cover-damages..equal..to_Purchaser's-mst..of.ieplacing-the-energy.ov_ �^^a Environmental Attributes that were not delivered by Seller as required by this Agreement. 28 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Pordnd3-1418531.16 0058892-00027 100 Purchaser shall use commercially reasonable efforts to mitigate such damages. Purchaser shall not be obligated to terminate this Agreement in order to receive payment for such damages. Such compensatory cover damages shall be a payment obligation of Seller and shall be covered by the guaranty delivered by Seller's Guarantor (subject to the terms and conditions of that Guaranty). If Seller fails to deliver energy or Environmental Attributes as required by this Deleted:g Agreement Purchaser shall send eller an Invoice for amounts due under this Section_ 8:7 Such Inserted:g invoice shall set forth Purchaser's calculation of cover damages in reasonable detail. Seller shall Deleted:Purchaser pay Purchaser amounts due under Purchaser's invoice within ten (10) days of receipt. If Seller ` Inserted;Potahaser disputes the invoice,in good faith, eller shall nonetheless pay any undisputed-amount-no later .. Deleted:it than ten 10 days after recei t of Purchasers Invoice An amount disputed b Sellerin good ( ) Y P Y — -. .. --.... --P- Y - - - Inserted:it faith shall be immediately submitted to dispute resolution under Article 10, and Seller shall pay Deleted:am«Ives any amount,&termined to be owed Purchaser(including interest at the Prime Rate plus 200 basis ---- - ..--------- -- ------------------ ...... - --- ------... - --- Inserted:It ra«foes points)within five(5)days after the dispute is resolved under Article 10. Deleted:that it is Inserted:that it is ARTICLE 9 LIMITATION OF LIABILITY EXCEPT TO THE EXTENT INCLUDED IN SPECIFIC CHARGES EXPRESSLY PROVIDED FOR HEREIN, NEITHER PARTY HEREUNDER SHALL BE LIABLE FOR SPECIAL, INCIDENTAL, EXEMPLARY, INDIRECT,PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF A PARTY'S PERFORMANCE OR NON-PERFORMANCE UNDER THIS AGREEMENT, WHETHER BASED ON OR CLAIMED UNDER CONTRACT, TORT (INCLUDING SUCH PARTY'S OWN NEGLIGENCE) OR ANY OTHER THEORY AT LAW OR IN EQUITY. ARTICLE 10 DISPUTE RESOLUTION If the Parties are unable to resolve a dispute with respect to this Agreement, either Parry may send a notice to the other requesting a meeting at which senior officers or officials of the Parties will attempt to resolve the dispute. If the Partes are unable to resolve the dispute within twenty(20)Days after the meeting notice is received by the Party to whom it is directed,or such longer period as the Parties may agree, then either Party may initiate binding arbitration as set forth herein. Such arbitration shall be submitted to a single disinterested arbitrator,mutually agreed to by the Parties, with significant experience in the electric power industry. If the Parties cannot mutually agree on the selection of the arbitrator within thirty(30)Days of the demand for arbitration, the arbitrator shall be selected in accordance with the Commercial Dispute Resolution Procedures of the American Arbitration Association as they pertain to the selection of arbitrators. Except as otherwise provided in this Article 10, the arbitration shall be conducted pursuant to the Commercial Dispute Resolution Procedures of the American Arbitration Association (including the Expedited Procedures thereof with respect to claims and counterclaims that do not exceed $75,000). The arbitrator shall be instructed to use all reasonable efforts to begin the hearing on the dispute within sixty(60)Days of being selected by the Parties.or theAmericanArbitration Association and-to render 8-written decision getting forth .--- Fomtatt d --� its findings and conclusions within thirty (30) Days,of the date on which the arbitration 29 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Pwht[3-1418531.16 0058892-00027 1.01 proceedings are concluded;provided, however, that if the determination of a dispute under this Agreement depends upon the resolution of a dispute under the Project PPA, the arbitrator shall defer a written decision on the d ispute under this Agreement untilafrer the resolution of the dispute under the Project PPA. If any portion of a dispute relates to billing, payment or money damages, the Parties shall, in advance of the hearing, exchange and submit to the arbitrator their last best offer with respect to the disputed billing, payment or money damages. The arbitrator's power shall be limited to choosing only one or the other of the offers submitted. The arbitrator's decision concerning the item or items in dispute shall be final and binding on the Parties and shall be enforceable in any court of competent jurisdiction;provided, however, that either Party shall have the right to appeal manifest errors of law (but not findings of fact) to a court of competent jurisdiction. Any such appeal must be filed, if at all, within ten (10) days of the date on which the arbitrator's decision is rendered. Each Party shall bear its own attorneys' fees and costs of pursuing the arbitration;the Parties shall share equally all fees and costs of the American Arbitration Association,the arbitrator and similar expenses. ARTICLE 11 ASSIGNMENT 11.1 Restriction on Assienments. Except as otherwise provided below, neither Party may a ssign this Agreement w ithout t he other P arty's p rior w ritten consent, which such P arty shall not unreasonably withhold. The nonassigning Party may withhold its consent if the other Party proposes to assign its rights or delegate its duties under this Agreement to any party that has a credit rating from S&P of"BBB" or less or has a credit rating from Moody's of`Baa2"or less. Any assignment in violation of this provision shall be void. Notwithstanding the foregoing or anything expressed or implied herein to the contrary: (a) Purchaser may, without the prior written consent of Seller, assign this Agreement: (1) to a purchaser of all or substantially of the assets of the Purchaser; (2) to an Affiliate of the Purchaser;or (3) in connection with a merger of the Purchaser with another Person or any other transaction resulting in a change of control of the Purchaser; provided that such purchaser, such Affiliate or the Person surviving such merger, as applicable,agrees in writing to be bound by the terms of this Agreement;and (b) Seller may, without the prior written consent of Purchaser, assign this Agreement: (1) to a purchaser of all or substantially of the assets of the Seller;- -----------{2)----to an Affiliate-of the Seller,-or---------- rormatted — � 30 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PonIM3-1418531.16 0058892-00027 102 (3) in connection with a merger of the Seller with another Person or any other transaction resulting in a change of control of the Seller; provided that such purchaser, such Affiliate or the Person surviving such merger, as applicable,agrees in writing to be bound by the terms of this Agreement;and (c) Purchaser may,without the consent of Or notice to the Seller,sell,transfer, assign, convey,encumber or otherwise dispose of all or any portion of the Environmental Attributes. 11.2 Assumption by Assignee• No Release from Liabilities. Any permitted assignee or transferee of a Party's interest in this Agreement shall assume all existing and future obligations of such Party to be performed under this Agreement. Unless otherwise agreed to by the Parties, upon any permitted assignment of this Agreement, the assigning Party shall nevertheless continue to be and remain liable for the performance of its obligations hereunder in accordance with the terms hereof. 113 Binding Effect. This Agreement shall bind and inure to the benefit of the Parties and their permitted successors and assigns. ARTICLE 12 FINANCING LIENS 12.1 Assignment as Security to Seller Lender. Seller,without approval of Purchaser, may grant a security interest in its interest under this Agreement to Seller Lender as security for any loan made for the purpose of financing or refinancing the construction and/or operation of the Project(or the Alternate Project)and the Interconnection Facilities. Notwithstanding the _ foregoing or anything else expressed or implied herein to the contrary, Seller shall not assign, transfer, convey,encumber, sell or otherwise dispose of all or any portion of the Environmental Attributes to Seller Lender. Promptly after granting such security interest, Seller shall notify Purchaser in writing of the name, address, and telephone and facsimile numbers of each Seller Lender to which Seller's interest under this Agreement has been encumbered. Such notice shall include the names of the account managers or other representatives of Seller Lender to whom all written and telephonic communications may be addressed. After giving Purchaser such initial notice, Seller shall promptly give Purchaser notice of any change in the information provided in the initial notice or any revised notice. If Seller encumbers its interest under this Agreement as permitted by this Section 12.1, the following provisions shall apply: (a) Seller Lender shall have the right, but not the obligation, to perform any act required to be performed by Seller under this Agreement to prevent or cure a default by Seller,and such act performed by Seller Lender shall be as effective to prevent or cure a default as if done by Seller. `_________________ ...-- Format0ed 31 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Pwdnd3-1618531.16 0058892-00027 103 (b) Upon t he receipt of a written request from Seller or any Seller Lender, Purchaser shall, and shall use good faith efforts to cause Purchaser Lender to, execute or arrange for the delivery of such certificates, consents, opinions, and other documents as may be reasonably necessary for Seller to consummate any financing or refinancing and will enter into reasonable agreements with such Seller Lender that provide that Purchaser and Purchaser Lender recognize the rights of such Seller Lender upon foreclosure of Seller Lender's security interest and such other provisions as may be reasonably requested by any such Seller Lender,provided, however, that any such agreement shall not constitute a modification hereof unless Purchaser otherwise agrees in its sole discretion. (c) Purchaser acknowledges that upon an event of default by Seller under any financing documents, any Seller Lender may (but shall not be obligated to) assume, or cause its designee to assume, all of the interests, rights, and obligations of Seller thereafter arising under this Agreement Notwithstanding any such assumption, S eller shall not be released and discharged from and shall remain liable for any and all obligations to Purchaser arising or accruing hereunder. (d) Purchaser agrees that no Seller Lender shall be obligated to perform any obligation or be deemed to incur any liability or obligation provided in this Agreement on the part of Seller or shall have any obligation or liability to Purchaser with respect to this Agreement except to the extent any Seller Lender has assumed the obligations of Seller hereunder p ursuant to this S ection 12.1;p rovided that P urchaser s hall n evertheless be entitled to exercise all of its rights hereunder in the event that Seller or Seller Lender fails to perform Seller's obligations hereunder. 12.2 Asstenment as Security to Purchaser Lender. Purchaser, without approval of Seller, may grant a security interest in its interest under this Agreement to Purchaser Lender as security for any loan undertaken for general financing purposes. Promptly after granting such security interest, Purchaser shall notify Seller in writing of the name, address, and telephone and facsimile numbers of each Purchaser Lender to which Purchaser's interest under this Agreement has been encumbered. Such notice shall include the names of the account managers or other representatives of Purchaser Lender to whom all written and telephonic communications may be addressed. After giving Seller such initial notice, Purchaser shall promptly give Seller notice of any change in the information provided in the initial notice or any revised notice. If P urchaser encumbers its interest u nder t his Agreement a s p ermitted b y this Section 12.2,the following provisions shall apply: (a) Purchaser Lender shall have the right, but not the obligation, to perform any act required to be performed by Purchaser under this Agreement to prevent or cure a default by Purchaser, and such act performed by Purchaser Lender shall be as effective to prevent or cure a default as if done by Purchaser. (b) Upon the receipt of a written request from Purchaser or any Purchaser---- ma -------- rmetea - - ----- Undei, Seiler shall,and shall ase good faiifi efforis to cause Sefler Lendei io,ezeclite or 32 LONG-TERM POWER PURCHASE AGREEMENT 13ETWEEN PPM ENERGY,INC.AND[XXX] Pordnd3-1418531.160058892-00027 104 arrange for the delivery of such certificates, consents, opinions, and other documents as may be reasonably necessary for Purchaser to consummate any loan or any part thereof and will enter into reasonable agreements with such Purchaser Lender that provide that Seller and Seller Lender recognize the rights of such Purchaser Lender upon foreclosure of Purchaser Lender's security interest and such other provisions as may be reasonably requested by any such Purchaser Lender,provided, h owever, that any such agreement shall not constitute a modification hereof unless Seller otherwise agrees in its sole discretion. (c) Seller acknowledges that upon an event of default by Purchaser under any financing documents relating to the loan secured by a security interest in Purchaser's interest under this Agreement, any Purchaser Lender may(but shall not be obligated to) assume, or cause its designee or a new purchaser to assume, all of the interests, rights, and obligations of Purchaser thereafter arising under this Agreement. Notwithstanding any such assumption, Purchaser shall not be released and discharged from and shall remain liable for any and all obligations to Seller arising or accruing hereunder. (d) Seller agrees that no Purchaser Lender shall be obligated to perform any obligation or be deemed to incur any liability or obligation provided in this Agreement on the part of Purchaser or shall have any obligation or liability to Seller with respect to this Agreement except to the extent any of Purchaser Lender has assumed the obligations of Purchaser hereunder pursuant to this Section 12.2;provided that Seller shall nevertheless be entitled to exercise all of its rights hereunder in the event that Purchaser or Purchaser Lender fails to perform Purchaser's obligations hereunder. ARTICLE 13 REPRESENTATIONS COVENANTS,AND WARRANTIES 13.1 Seller's Representations and Warranties. Seller represents and warrants as follows: (a) Seller is a corporation, duly organized and validly existing under the laws of the state of Oregon, authorized to conduct business in the state of Wyoming, Arizona, Nevada,and California. (b) Seller has the power and authority to enter into and perform this Agreement and is not prohibited from entering into this Agreement or discharging and performing all covenants and obligations on its part to be performed under and pursuant to this Agreement, except where such failure does not have a material adverse effect on Seller's performance under this Agreement. (c) Seller has obtained, or will obtain prior to commencement of deliveries of Delivered Energy hereunder, all regulatory approvals required by any governmental authority,whether federal,state or local,in order to perform its obligations hereunder. ------ Formatte0 ------ -----ne-execution-and--delive - of-this--A----ement consurmniation--of-the" (� ry 8Te transactions contemplated herein, and fulfillment of and compliance by Seller with the 33 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] POAM3-1418531.16 0058892-00027 105 provisions of this Agreement will not conflict with or constitute a breach of or a default under or require any consent, license, or approval that has not been obtained pursuant to any of the terms, conditions, or provisions of any law, rule, or regulation; any order, J udgment, writ, injunction, decree, determination, award, or other instrument or legal requirement of any court or other agency of government; the documents of formation of Seller or any contractual 1 imitation, restriction,or outstanding trust indenture,deed of trust, mortgage, loan agreement, lease, other evidence of indebtedness, or any other Agreement or instrument to which Seller is a party or by which it or any of its property is bound and will not result in a breach of or a default under any of the foregoing. (f) Seller has,by proper action of its members,taken all such action necessary to authorize the execution and delivery of, and the performance by Seller of its obligations under,this Agreement. (g) This Agreement is a legal, valid, and binding obligation of Seller enforceable in accordance with its terns, except as limited by laws of general applicability limiting the enforcement of creditors' rights or by the exercise of judicial discretion in accordance with general principles of equity. (h) Seller is party to a power purchase agreement between it and High Winds, LLC, pursuant to which Seller holds the right to purchase the energy and Environmental Attributes generated by the Project in accordance with the terms of the power purchase agreement. The Project is currently expected to have an installed capacity of 145.8 MW. 13.2 Purchaser's Representations and Warranties. Purchaser represents and warrants as follows: (a) Purchaser is a municipal corporation created pursuant to the laws of the State of California, authorized to conduct business in each jurisdiction where necessary for the conduct of its business,except where such failure does not have a material adverse effect on Purchaser's performance under this Agreement. (b) Purchaser has the power and authority to enter into and perform this Agreement and is not prohibited from entering into this Agreement or discharging and performing all covenants and obligations on its part to be performed under and pursuant to this Agreement. (c) The execution and delivery of this Agreement, the consummation of the transactions contemplated herein, and the fulfillment of and compliance by Purchaser with the provisions of this Agreement will not conflict with or constitute a breach of or a default under or require any consent, license, or approval that has not been obtained pursuant to any of the terms,conditions or provisions of any law, rule,or regulation;any order, judgment, writ,i njunction,d ecree,d etermination,a ward, or o ther i nstrument or legal requirement of any court or other agency of government; the documents of formation of Purchaser or any contractual limitation, restriction, or outstanding trust F0.8tbed `indenture;deed of��ist;"moHg"age;l"pan agreement lease;otfiefevidence of iiidetifedness;" or any other Agreement or instrument to which Purchaser is a party or by which it or any 34 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PonIM3-1418531.16 0058892-00027 106 of its property is bound and will not result in a breach of or a default under any of the foregoing. (d) Purchaser has, by proper corporate action, taken all such action necessary or advisable to authorize the execution and delivery of,and the performance by Purchaser of its obligations under,this Agreement. A copy of the applicable documents authorizing Purchaser to enter into this Agreement shall be provided to Seller within 10 days of the Effective Date. (e) This Agreement is a legal, valid, and binding obligation of Purchaser enforceable in accordance with its terms, except as limited by laws of general applicability limiting the enforcement of creditors' rights or by the exercise of judicial discretion in accordance with general principles of equity. ARTICLE 14 MISCELLANEOUS 14.1 Severability. The invalidity, in whole or in part, of any of the articles or paragraphs of this Agreement will not affect the validity of the remainder of such articles o r paragraphs. 14.2 Amendment. No modification, amendment, or other change to this Agreement will be effective unless consented to in writing by each of the Parties. 14.3 Waiver. Failure or forbearance by any Parry to exercise any of its rights or remedies under this Agreement shall not constitute a waiver of such rights or remedies. No Party shall be deemed to have waived or forborne any right or remedy resulting from such failure to perform unless it has made such waiver specifically in writing. 14.4 Further Assurances. The Parties shall do and shall perform all such acts and things; shall execute all such deeds,documents, and writings;and shall give all such further assurances as may be necessary to carry out the intent of this Agreement. In particular, if any governmental or administrative approval,permit,order,or other authorization shall be necessary relative to this Agreement and any provision of this Agreement or any transaction contemplated by this Agreement, each Party shall use all reasonable efforts to assist in the obtaining of such approval,permit,order,or other authorization. 14.5 No Third-Party Beneficiaries. There are no third-party beneficiaries to this Agreement, and this Agreement shall not impart any rights enforceable by any Person that is not a Party. 14.6 Time. U nless otherwise specified in this Agreement, all references to specific times under this Agreement shall be references to Pacific standard or Pacific_daylight savings time,whichever is then prevailing. --_-, rormatxea— — 35 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Ponlnd3-1418531.16 0058892-00027 107 14.7 Headines. Captions; Construction: Conflict Between Aereement and Exhibits. All indexes, titles, subject headings, section titles, and similar items are provided for the purpose of reference and convenience and are not intended to affect the meaning of the content or scope of this Agreement. Any term or provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any Party. The Parties collectively have prepared this Agreement, and none of the provisions hereof shall be construed against one Party on the ground that such Party is the author of this Agreement or any part hereof. Because both Parties have participated in the drafting of this Agreement, the usual rule of contract construction that resolves ambiguities against the drafter shall not apply. 14.8 Forward Contract. The Parties acknowledge and agree that this Agreement and the transactions contemplated by this Agreement constitute a "forward contract" within the meaning of the United States Bankruptcy Code and that Seller is a"forward contract merchant" within the meaning of the United States Bankruptcy Code. 14.9 Entire Aereement. This Agreement (including the attached Exhibits, which are incorporated by this reference) and all amendments to this Agreement contain the complete Agreement between Seller and Purchaser with respect to the matters contained in this Agreement and supersede all other Agreements, whether written or oral, with respect to the matters contained in this Agreement. 14.10 Confidential Information. The Parties have and will develop certain information, processes, know-how, techniques, and procedures concerning the Project (or the Alternate Project)and will also share certain information concerning their financial condition and, in the case of Seller,the condition of Seller's Guarantor(collectively, "Information )that they consider confidential and proprietary. Notwithstanding the confidential and proprietary nature of such Information, the Parties(each, a"Disclosing Party")may make this Information available to the other (each, a "Receiving Party") subject to the following provisions of this Section 14.10: (a) At the time of furnishing or making available for inspection such confidential or proprietary Information, the Disclosing Party will expressly designate by label, stamp, or oral communication (to be confirmed in writing) the Information that it considers to be confidential and/or proprietary; provided, however, that financial information provided by Seller with respect to itself or Seller's Guarantor shall always be deemed to be confidential and proprietary. (b) The Receiving Party's obligations with respect to the use or disclosure of such Information will be as set forth in this Section 14.10. (c) Upon receiving or Teaming of Information designated as confidential and/or proprietary by the Disclosing Party,the Receiving Party shall: (1) . treat such Information as confidential and use reasonable care not to divulge such Information to any third party except as required by law, subject r�ttea ` to the testti8lions sef"fo"rtfi tietow 36 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PonIM3-1418531.16 0058M-=7 108 (2) restrict access to such Information to employees (and others who agree to be bound by this Agreement)whose access is reasonably necessary in developing and financing the Project (or the Alternate Project) and for the purposes of this Agreement, including Persons who agree to be bound by this Agreement who may provide debt or equity financing to Seller; (3) use such Information solely for t he p urposes o f this Agreement; and (4) upon the termination of this Agreement and at the request of the Disclosing Party, destroy or return any such Information in written or other tangible form and any copies thereof. (d) The restrictions of this Section 14.10 do not apply to: (1) release of this Agreement to the FERC,which entity may cause the document to become a public document; (2) release of this Agreement or related staff reports to Purchaser's City Council,or advisory board,or the SCPPA Board, which entity may cause the document to become a public document; (3) other disclosures necessary to comply with Applicable Law or other applicable regulations; (4) information that is,or becomes, publicly known or available other than through the action of the Receiving Party in violation of this Agreement; (5) information that is (i) in the possession of the Receiving Party prior to receipt from the Disclosing Party,or(ii) independently developed by the Receiving Party, provided that, in the case of clause (ii), the person or persons developing such information have not had access to any Information provided by the Disclosing Party;or (6) information that is,in the reasonable written opinion of counsel of the Receiving Party, required or advisable to be disclosed pursuant to applicable law or regulation (including any Freedom of Information Act request);provided, however, that the Receiving Party, prior to such disclosure, shall, to the fullest extent possible under the circumstances,provide reasonable advance notice to the Disclosing Party of the time and scope of the intended disclosure in order to provide the Disclosing Party an opportunity to obtain a protective order or otherwise seek to prevent, limit the scope of, or impose conditions upon such disclosure. (e) Notwithstanding the foregoing, Seller may disclose Information to Seller -- Lender-(ifany)-and-Purchaser-may-disclose Informationto-the-Purchaser--Lender-(ifany}------- FO""a and any other entity expressing an interest in providing equity or debt financing or 37 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND(XXX] Porn D.1418531.16 0058892-00027 109 refinancing and/or credit support to either Party(and to any agent of or consultant to such entity), and the agent or trustee of any of them so long as the party to whom Information is disclosed agrees in writing to be bound by the confidentiality provisions of this Section 14.10 to the same extent as if it were a Party. The terms and conditions set forth in this Agreement shall be deemed to be Information subject to the confidentiality provisions of this S ection 14.10. The obligations of the Parties under this Section 14.10 shall remain in full force and effect for two years following the termination of this Agreement. 14.11 Press Releases. Except as provided in Section 14.10, neither Party shall issue any press or publicity release or otherwise release,distribute,or disseminate any information for publication concerning this Agreement or the participation of the other Party in the transactions contemplated hereby without the prior written approval of the other Party, which approval will not be unreasonably withheld or delayed. 14.12 Governine Law. This Agreement shall be interpreted and enforced in accordance with the laws of the State of California without regard to otherwise governing principles of conflict of law. 14.13 No Aeencv. This Agreement is not intended,and shall not be construed,to create any association, joint venture, agency relationship, or partnership between the Parties or to impose any such obligation or liability upon either Party. Neither Party shall have any right, power, or authority to enter into any agreement or undertaking for, act as or be an agent or representative of,or otherwise bind the other Party. 14.14 Cooperation. The Parties acknowledge that they are entering into a long-term arrangement in which the c ooperation of both o f them will be required. If,d uting t he T erm hereof, requested cooperation either Party will materially benefit a Party in performing this Agreement and is without detriment to the other Party,the Parties commit to each other to make reasonable efforts provide such cooperation. 14.16 Effect of Force Majeure Event; Third Party Failure to Deliver Environmental Attributes. (a) General. Notwithstanding any other provision of this Agreement, each Party's obligations under this Agreement shall be suspended by a Force Majeure Event but only to the extent that the Force Majeure Event prevents the affected Party from performing its obligations under this Agreement. The affected Party's time for performance shall be extended by a period of time reasonably necessary to compensate for the delay caused by the Force Majeure Event,provided that the affected Party shall use diligent efforts to remedy or overcome the Force Majeure event;provided further that neither Party shall be required to settle any strike or labor dispute other than in its sole discretion.The occurrence and c ontinuation of a Force Majeure Event shall not suspend or excuse the obligation of a Party to make any payments required to be made hereunder. y maw 38 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] Ponl.0-1418531.16 0058842-00027 110 (b) Force Maieure Event Affecting Metered Output. If a Force Majeure Event affecting the Project, the Alternate Project, any of the Interconnection Facilities, or the Transmission System reduces or prevents deliveries of Metered Output for a period greater than thirty(30)days,then upon notice to Purchaser,Seller shall have the right to suspend deliveries of Delivered Energy at the Delivery Point for the duration of the Force Majeure Event. If the Force Majeure Event reduces but does not prevent delivery of Metered Output,for a period greater than thirty(30)days,then upon notice to Purchaser Seller shall have the right to suspend deliveries of Delivered Energy at the Delivery Point on a pro rata basis relative to the extent by which the Force Majeure E vent reduces t he M etered Output that t he P roject or A Itemate Project would otherwise produce but for the Force Majeure Event. Deliveries suspended under this provision shall not be made up, and the Base Schedule for the period in which deliveries are suspended shall be reduced as appropriate to reflect the effect of the Force Majeure Event. (c) Force Maieure Event Affecting Environmental Attributes. If a third party supplier fails to deliver Environmental Attributes from the Project or Alternate Project to Seller because of a Force Majeure Event affecting the Project, the Alternate Project, any of the Interconnection F acilities,o r t he Transmission S ystem)s uch that S eller i s n of able to d eliver such Environmental Attributes to Purchaser under this Agreement, Seller shall use commercially reasonable and diligent efforts to obtain Environmental Attributes from a replacement source or sources acceptable to Purchaser in the reasonable exercise of its discretion;provided, however, that Seller shall not be obligated to pay a greater price for replacement Environmental Attributes than what it pays its supplier for the Environmental Attributes produced by the Project or Alternate Project. If the Force Majeure event affecting the supply of Environmental Attributes prevents the supplier from delivering Environmental Attributes for a period of more than 120 days and Seller has not been able to arrange for a substitute source or sources of Environmental Attributes acceptable to both Parties, either Party may terminate this Agreement. Neither Party shall be liable for such termination. (d) Breach by Third Party Supplier Affecting Environmental Attributes. If a third party fails to deliver Environmental Attributes from the Project or Alternate Project because the third party is in breach of its supply agreement with Seller, Seller shall(i)use commercially reasonable and diligent efforts to compel the third party to deliver Environmental Attributes as required b y i is agreement with Seller and to recover damages from the s upplier, and(ii)use commercially reasonable and diligent efforts to obtain Environmental Attributes from a replacement source acceptable to Purchaser in the reasonable exercise of its discretion;provided, however, that Seller shall not be obligated to pay a greater price for replacement Environmental Attributes than what it pays its supplier for the Environmental Attributes produced by the Project or Alternate Project.. To the extent that Seller does not match energy delivered under this Agreement with Environmental Attributes because of a supplier's breach, Seller shall for a period of 120 days after the commencement of such breach reduce the price for each MWh that is not matched by an Environmental Attribute by$11 per MWh. If Seller is unable, despite its commercially reasonable and diligent efforts,to compel the third party to deliver Environmental Attributes for re-delivery under this Agreement within 120 days of such breach, or to identify a substitute source or sources of Environmental Attributes acceptable to both Parties, either Party ...... Pomtca - -1 may terminate this Agreement-Neither-Party-shall-be liable for such termination:---------- 39 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PoNM3-1418531"16 0058892-00027 111 I 14.17 Non-Recourse Obligations. Notwithstanding any other provision of this Agreement, no Person (nor any officer, employee, executive, director, agent or authorized representative of any such Person) other than Seller and Purchaser and any Person liable to the extent contemplated by a Guaranty or other Additional Security provided under this Agreement shall be liable for any payments due hereunder or for the performance of any obligation hereunder. In witness whereof, the Parties have caused this Agreement to be executed and delivered as of the date first set forth above. PPM ENERGY,INC. XXX Ey: Ey: Its: Its: Date: Date: `--------------------------------- ----------- -------------------------- F m tted 40 LANG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXX] PoddnV-1418531.16 0058892-OD027 112 EXHIBITS EXHIBIT A Project Description EXHIBIT B Form of Guaranty from Seller's Guarantor EXHIBIT C Form of Attestation EXHIBIT D Balancing Account Example Formatted 41 LONG-TERM POWER PURCHASE AGREEMENT BETWEEN PPM ENERGY,INC.AND[XXXI Ponlnd3-1418531.16 00588924=7 113 i EXHIBIT A PROJECT DESCRIPTION The Project will be located on private land located in Solano County, California, on which Project Owner will obtain wind energy leases or other possessory real estate rights with the landowners. The real estate rights will allow Project Owner to construct and operate wind generation facilities for a defined tern; and in exchange, each landowner will receive financial compensation. The wind generation facilities are expected to consist of wind turbines with an Installed Capacity of 145.8 MW and an assumed annual capacity factor of333Oo_ The Project's f Deleted:nleaM33.00 electrical system will consist of two key elements: (1) a collector system, which will collect D15erted:at leas133.00 energy from each wind turbine at approximately 575 to 690 volts (depending on the wind turbines selected) increased to 34.5 kV by a pad-mounted transformer and connect it to the Project substation;and(2)the substation,which will transform energy from 34.5 kV to 230 kV. The c ollector system c onsists o f t he pad no ount transformers and the 34.5 k V e lectric cables. Each wind turbine will generate power at approximately 575 to 690 volts(depending on the wind turbines selected). A transformer adjacent to each tower will transform the power to 34.5 kV. Transformers will be located on a transformer pad located approximately 5 feet from the tower pad. From there, power will be transmitted via a combination of underground and overhead 34.5 kV electric cables. The substation site will occupy approximately 1 to 2 acres in an area located approximately '/4 m ile from the existing PG&E 2 30 kV transmission line crossing the Project site. The substation site will be a graveled, fenced area with transformer and switching equipment and an area to park utility vehicles. Transformers will be non-polychlorinated biphenyl(PCB)oil-filled types. I Pordnd3-1418531.18 0058892-00026 114 EXHIBIT B FORM OF GUARANTY FROM SELLER'S GUARANTOR GUARANTY AGREEMENT This GUARANTY AGREEMENT (the "Guaranty") is made as of the _ day of 2003, by PACIFICORP HOLDINGS, INC., a corporation duly organized and existing under the laws of the State of Delaware, U.S.A., with its head office situated at 825 N.E. Multnomah, Suite 2000, Portland, Oregon 97232, U.S.A., (herein called "Guarantor"), for the benefit of , a municipal corporation duly created and existing under the laws of the State of California (herein called "Beneficiary"). (Guarantor and Beneficiary are individually referred to herein as a " Party" and collectively as the "Parties.") RECITALS: WHEREAS PPM Energy, Inc. (" PPM"), a subsidiary of Guarantor, has rights to the electric energy output and associated environmental attributes of a wind turbine electrical generation facility with an expected installed capacity of 145.8 MW to be constructed on a site located in Solano County, California(the "Project"); and WHEREAS, PPM desires to sell, and Benficiary desires to purchase electric energy equal to the metered output of an undivided [_j ( ) MW share of the installed capacity of the Project or of an Alternate Project (as defined in the Contract referred to below), along with any and all Environmental Attributes associated with such metered outpu; and WHEREAS to that end, the PPM and the Beneficiary have entered into that certain Long-Term Power Purchase Agreement (Wind Power) dated as of 2003 (the "C ontract"); and WHEREAS the Contract requires that PPM cause to be provided a guarantee of PPM's payment under the Contract, and Guarantor is willing to enter into this Guaranty to satisfy the conditions of the Contract. NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the Parties hereto agree as follows: Pordnd3-1418531.18 0058692-00026 115 1. Except as expressly provided herein to the contrary, Guarantor hereby unconditionally and irrevocably guarantees to Beneficiary that in the event of PPM failing in any respect to perform its payment obligations under the Contract, subject to any cure period, Guarantor shall immediately upon fust demand in writing by Beneficiary perform or take such steps as are necessary to achieve performance of PPM' s payment obligations and shall indemnify and keep indemnified Beneficiary against any and all losses, damages, claims, costs, charges, and expenses howsoever arising from the said failure to the extent of PPM's payment obligations under the Contract. Notwithstanding any provision herein to the contrary, in no event shall Guarantor's aggregate liability hereunder exceed [ I dollars(US$[ ]). 2. The liability of Guarantor hereunder shall not be reduced or discharged by any alteration in the relationship between Beneficiary and PPM which has been consented to by PPM in writing (with or without the knowledge or consent of Guarantor), or by any forbearance or indulgence by Beneficiary towards PPM or Guarantor whether as to payment, time, performance, or otherwise. 3. Guarantor agrees to make any payment due hereunder upon first written demand without set-off or counterclaim and without any legal formality such as protest or notice being necessary, and waives all privileges or rights which it may have as a guarantor, including any right to require Beneficiary to claim payment or to exhaust remedies against PPM or any other person. 4. The obligations of Guarantor hereunder shall continue in full force and effect after expiration or termination of the Contract until all PPM' s payment obligations and liabilities under the Contract have been fully discharged. 5. This Guaranty and the undertakings herein contained shall be binding upon the successors and assigns of Guarantor and shall extend to and inure for the benefit of the successors or permitted assignees of Beneficiary. Beneficiary may assign, charge, or transfer all or any of its right, title and interest in this Guaranty upon such terms as Beneficiary may think fit to any agent for and on behalf of any syndicate of banks and financial institutions providing credit and guaranty facilities to Beneficiary in connection with the Contract and to any permitted assignee of Beneficiary' s rights and responsibilities under the Contract. No person other than Beneficiary or such permitted assignees as described above is intended as a beneficiary of this Guaranty nor shall any such person have any rights hereunder. Guarantor may not assign or otherwise transfer any of its rights or obligations hereunder. 6. Notwithstanding anything to the contrary above, in the event of any claim under this Guaranty, Guarantor shall be entitled to assert any defense, set-off or counterclaim that Beneficiary could assert had such claim been made directly against any person under the Contract except defenses based upon(i) lack of authority of PPM to enter into and/or perform Portlm3-1418531.18 0058892-=6 116 its obligations under the Contract or (ii) any insolvency, bankruptcy, reorganization, arrangement, composition, liquidation, dissolution or similar proceeding with respect to PPM. 7. In the event there is any dispute under the Contract that relates to a sum being claimed under this Guaranty, which dispute is submitted to arbitration or judicial resolution, the obligations under this Guaranty shall be suspended pending the outcome of such arbitration or judicial resolution and Guarantor further agrees that any award resulting from such arbitration or judicial resolution shall be conclusive and binding on it for purposes of determining its obligation under this Guaranty. 8. This Guaranty shall be governed by and construed in accordance with the laws of the State of California, provided that any provision of such law invalidating any provision of this Guaranty or modifying the intent of the Parties as expressed in the terms of this Guaranty shall not apply. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective authorized representatives as of the date fust written above. PACIFICORP HOLDINGS, INC. By: By: Name: Name: Title: Title: Pordnd3-1418531.19 0058892-00026 117 i EXHIBIT C FORM OF ATTESTATION PPM Energy, Inc. Green Tag Attestation and Bill of Sale PPM Energy,Inc.("PPM")hereby sells,transfers and delivers to ("Customer") the Environmental Attributes a nd Environmental A ttnbute Reporting Rights associated with the generation of the indicated energy for delivery to the grid(as such term(s)are defined in the (identify contract)(the"Contract') dated_,200_ between PPM and Customer) arising from the generation for delivery to the grid of the energy by the Facility described below: Facility name and location: Fuel Type: Capacity(MW):_ Operational Date: (for facility that has added renewable capacity,show operational date and amount of new capacity) As applicable: CEC Reg.no._ Energy Admin.ID no._ Q.F.ID no. Dates MWhrs generated 200 206- 200 in the amount of one Environmental Attribute or its equivalent for each megawatt hour generated; and PPM further attests,warrants and represents as follows: i) to the best of its knowledge,the information provided herein is true and correct; ii) its sale to Customer is its one and only sale of the Environmental Attributes and associated Environmental Attribute Reporting Rights referenced herein; iii) the Facility generated and delivered to the grid the energy in the amount indicated as undifferentiated energy; and [check one:] iv) PPM owns the Facility. iv) to the best of PPM's knowledge,each of the Environmental Attributes and Environmental Attribute Reporting Rights associated with the generation of the indicated energy for delivery to the grid have been generated and sold by the Facility. This serves as a bill of sale, transferring from PPM to Customer all of PPM's fight,title and interest in and to the Environmental Attributes and Environmental Attribute Reporting Rights associated with the generation of the energy for delivery to the grid. Contact Person: tel: 1-503-813-_;fax: 1-503-813-_ WITNESS MY HAND, PPM ENERGY,INC. an Oregon corporation . PonIM3-1418531.18 OD58892-00026 118' 4 By Its Date: This Attestation may=be disclosed by PPM and Customer to others,including the Center for Resource Solutions, to substantiate and verify the accuracy of PPM's advertising and public communication claims, as well as in PPM's advertising and other public communications. Porthid3-1018531.18 0058892-00026 1119 1 � AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESr� DATE: MAY 21 2003 �1 SUBJECT: APPROVAL OF PRO-FORMA NETTING AGREEMENT BETWEEN THE CITY AND PACIFICORP RECOMMENDATION It is recommended that the Utility Board/City Council approve the pro-forma netting agreement between the City and PacifiCorp and authorize the Mayor to execute the agreement upon the preparation of the execution copy. BACKGROUND The City has entered into various pro-forma enabling agreements in the past several years for the purchase and sale of wholesale electricity, among them, the Western Systems Power Pool (WSPP) multi-party enabling agreement. Due to the current financial crisis in the wholesale merchant generation sector, the market participants are becoming increasingly cognizant of the need to complement/revise certain terms and conditions to the pro-forma enabling agreements. The netting agreerr--lent with PacifiCorp clarifies the parties' payment obligations under the WSPP agreement. Such payment obligations are to be calculated and enforced on a net basis, i.e., net of both purchases and sales so that the Party owing money will pay the net amount of money owed. This provision is important in order to reduce a party's financial exposure in case of counterparty's default. Staff has reviewed the proposed agreement and has found it acceptable; therefore staff is hereby recommending the execution of the agreement. FISCAL IMPACT No fiscal impact as a result of the actionstaken in this agenda item is anticipated. Prepared by: Bob Tang, Assistant Director Resource Management 120 NETTING AGREEMENT This Netting Agreement is entered into pursuant to Section 28.3 of the Western Systems Power Pool Agreement, as amended (the "Agreement'; initially capitalized terms used and not otherwise defined herein are defined in the Agreement), to which PacifiCorp, an Oregon corporation and City of Azusa ("Counterparty") are Parties. PacifiCorp and Counterparty agree to net payments under the Agreement as follows: If either Party owes the other amounts on a payment due date under one or more Confirmation Agreements, then such amounts will be aggregated and the Party owing the greater aggregate amount will pay the other Party the positive difference on the payment due date. Each Party reserves to itself all rights, set-offs, counterclaims, and other remedies and defenses arising out of the Agreement or otherwise. All outstanding payment obligations between the Parties, arising under any one or more of the Agreement, Confirmation Agreements, WSPP Service Schedules A, B, and C, or Service Agreements entered into in connection therewith (including payment obligations to be netted pursuant hereto) form a single integrated agreement between the Parties, and shall be subject to set off and recoupment. Nothing in this Netting Agreement shall require either Party to execute Exhibit A to the WSPP Agreement; nor shall either Party's obligations with respect to payments to or from other users of the WSPP Agreement be affected by such Party entering into this Netting Agreement. PACIFICORP City of Azusa By By Title Title Date Date 121 AZUSA LIGHT 6 WATER Azusa Utility Board Meeting May 21 , 2003 AZUSA 'y LIGHT A WATER Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update NISW Status of Pro j ects • FERC Settlement of City 's Transmission Revenue Requirement (TRR) ➢ Latest settlement proposal by the Investor Owned Utilities (IOUs) narrowed the monetary difference to less than $150,000 for the City ➢ Subject to major reversal of positions by the parties in settlement discussions, the settlement is within reach. Next settlement conference will be on May 21 th • New Distribution Substation ➢ Contractual discussions with Edison continue ➢ Bond financing is targeted to be completed by mid July • Renewable Energy ➢ Contract with High Winds windpower plant, in Solano County, California is finalized subject to participating SCPPA members approval ➢ The City is participating in the procurement for 3 MW under a 20-year contract with PPM, subsidiary of PacifiCorp at a price of$53.5/MWh. Contract approval is sought by the Utility Board. ➢ Staff continues discussions with a geothermal power project developer for potential renewable power purchases • Financial Projections and Retail Rate Adjustment ➢ Staff completed and is presenting the financial projections for the Light Fund for the next five fiscal years ➢ Staff is concurrently recommending retail rate adjustment commencing July, 2003 • Resource Planning ➢ Planning process is under way for resource procurement and optimization strategies for the period of October 2003 through September 2004 N .tom CITY OF AZUSA ENERGY CONSUMPTION COMPARISON PERCENT MONTH FY01-02 FY02-03 CHANGE JUL 21,524 23,581 9.56% AUG 22,908 _ 22,502 . -1.77% °" SEP 23047 : .8.50%. OCT _._ 20,485 _ 20 290 - -0.95% -NOV... . - .._ .,... - 18,353 ... 18,577 DEC 18,430 18,784 1.92% .18,882_ __. 19 5353.46% FEB 17,202 17,294 0.53% MAR18,535 19,280 4.02% APR....... _. 18,137 18,425 1.59%, MAY JUN TOTAL 195,698 _ -,_201,316 . 2.87% ENERGYCONSUMPTION IN MWH CITY OF AZUSA PEAK DEMAND COMPARISON PERCENT MONTH FY01-02 FY 02-03 CHANGE JUL 46.6 52.0 11.59% AUG 46.9 .48.4 3.32% SEP 47.4 54.1 14.18% OCT 50.4 ' 44.0 -12.65% NOV_ 36.2 38.9 7.339/6 -. DEC 34.0-- - 34.4 - 1.02% ` JAN 34.1 : 36.5 7.16% FEB 36.2 33.5 7.46% MAR 35.7 . 40.2 12.59% twl' APR 35.5 39.0 9.68% ............. JUN PEAK DEMAND IN MW I-+ tV '..3t f AVERAGE AVERAGE MONTH ON PEAK PRICE OFF PEAK PRICE MAR 02 $34.00 i $28.00 APR 02 -- .__ $2_9_._00 $17.00 MAY02 _ . __ . , -._$26.59_1, $15.05 JUN 02 $32 20 $11.26 --JUL02 $38.73 $15.70 . . AUG 02 _ $30.96 $18.08 SEP 02 $31 .52 - $20.89 OCT 02 $32.97 $22.04 NOV 02 $32.59 $24.53 _DEC 02 _$39_25 $29.17 JAN 03 $39.13 $27.94 FEB 03 $54.02 $42.41 MAR03 $53.33 _. __. .. _ $40.50 APR 03 $42.09 , $30.40 ALL PRICES IN $/MWH Power Resource Cost Accounting FY 502-'03 LONGTERM SHORT TERM TRANSMISSION ANCILLARY SCHEDULING TOTAL - WHOLESALE NET MONTH 1 CONTRACTS PURCHASES COSTS SERVICE COSTS DISPATCHING COSTS COSTS l REVENUES _ COSTS JUL 02 1,024,520.77 ! 1,069,535.12 145,889.50 I 15,646.771 23,962.94 2,279,555 10 _(710,921.70)' 1,568 633 40 . AUG 02 1,002,03977 1,000,936.07 145,855.36 + 9,242121 2281977 _ 2,180,903.0911. (663,699.02) 1,517,204.07 SEP 02 „ 1,002,053 47 979,94.9 15 145,935 64""� 10,574 93 1 23,095.48 � 2 161,608 67 ' � (538,017.56) 1.623,591A1 OCT 02 1,023,549.90 742,620.71 151,369.701 10,820.30 - 20,140.85 1,948,50146E (53895628) 1,409,545.18 NOV02 1 1,008560.74 .. 727,46675 109341.531 7,733.03 11,75126 1,864853.31 (337674.22) 1,527,179.09 DEC62 ? 1,099542.74 742,655.79 11355846 7,433.28 € 17,950.83 1,981,141.10 (490869.42) 1,490271.68 .. _ .... ... ..... JAN 03(•) 800,768.74 450,866 51 387,056.07 i 14,367 36 20,998.99 1 674,057 67 _ (486 582.21) 1,187 475.46 APR 04 817,295 74 688,267.42 178 987 18 209,561.97 1 9,594 18 18,831.70 1,469,149.64 (515 662.33) ..953 257.11 m Y � 100,000 00 _ 16,265.02 1 785 154 97 (532 664.38) 1,252 490.59 692,065 91 176 998 30 1 430,235 05 MAY 05 '- 799 825 74 .._._...___ FEB 03 T-100,000 00 15 962.21 1 800,512 55 (761 953.13) 1,038 559.42 .._" 000 _. _ 0.00 .. .... .. ........... _... ..I. ... ; ... 0.00 ..... 0.00 JUN O6 $9,379.084.35 _ _ 1091,779.05 _ .38.207.11 TOTAL $7524,59848 $1,7645637 $285,41197 aia va.yoi.00 io i Janua 2003 Transmission Costs,include a one-year purchase_. __ __.. �..._.... .. --. ... .. (.) , ry � ye p ase of CAISO FTR Short Term Purchases no longer include the gas contracts ,( as con ra )y'red as of Deoember31,2002)_ ..... k _ .." __ .. J�_ ­­_._1_1 _ (1) INCLUDES SCPPA—LONG TERMCONTRACTS AND PASADENA CONTRACT v .. _.. .... .. .. .. (2) j INC LUDESAL L SHOR1.TTERM11 PURCHASE S FOR HEDGING AND LOAD BALANCINGPURPOSES. (3) NCLUDES ALL SHORT TERM AND LONG TRANSMISSION CONTRACT COSTS ,COSTS CHARGED BY CALIFORNIA INDEPENDENT SYSTEM OPERATOR FOR SYSTEM RELIABILITY FUNCTIONS (5) 1INCLUDES COSTS FOR SCHEDULING AND DISPATCHING OF ELECTRICITY _ } '—(6) _ISUMOF(1)THROUGH(5) .T _f _ _ .. ... O WHOLESALE 7 REVENUES DERIVED FROM SALES OF EXCESS POWER- l (DIFFERENCE OF(6)AND(7) ,.. .. 1�+ � p.