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HomeMy WebLinkAboutReso 87-1983RESOLUTION NO. 87-83 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH PACIFIC GAS & ELECTRIC CO. (CUSTOMER OWNED AUXILIARY POWER SOURCES AGREEMENT that: BE IT RESOLVED by the City Council of the City of South San Francisco 1. Execution of Agreement. Execution of an Agreement entitled "Pacific Gas and Electric Company Customer-Owned Auxiliary Power Sources Agreement" between the City of South San Francisco and Pacific Gas and Electric Company is hereby authorized and a copy of said Agreement is attached hereto as Exhibit "A." 2. Signatures. The City Manager is authorized to execute said Agreement on behalf of the City, and the City Clerk attest his signature thereto. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at an adjL regular meeting held on the 27thday of July , 1983, by the following vote: AYES: Counciln~embers Ronald G. Acosta, Mark N. Addiego and Roberta Cerri Teglia NOES: None ABSENT: Councilmembers Emanuele N. Damonte and Gus Nicolop,'ulos City Clerk ~ EXHIBIT "A" Pacific Gas and Electric Company CUSTOMER-OWNED AUXILIARY POWER SOURCES . AGREEMENT CITY OF SOUTH SAN FRANCISCO, a California municipality (Customer) has informed PACIFIC GAS AND ELECTRIC COMPANY (PGandE) of Customer's ownership of certain auxiliary power sources (APS) which is(are) located on Customer's premises at 195 Belle Air Road, South San Francisco, · California 94080 , and'that with appropriate compensation, Customer is willing to operate the APs during actual or threatened power shortages t© supply Customer's load so as to relieve the electric load on PGandE's system. PGandE is willing to accept Customer's offer under the terms and conditions described herein, provided ghat at the location indicated, Customer'can displace an aggregate minimum of 500 kW of load from the PGandE system. Therefore, t.he parties hereto agree to the following terms and conditions: 1. PGandE shall continue to furnish all'electric power to Customer under PGandE's applicable tariff schedules on file with the California Pub]~c Utilities Commission, except as provided in this Agreement. Customer's APS shall be used to supp]y Customer's electrical requirements only, and unless otherwise mutually agreed upon, shall not be used to supply power into PGandE's electrical system, 3. Customer shall be responsible for installing, owning, operating and maintaining the APS, including any necessary control or protective apparatus. PGandE acquires no right or responsibility in the APS ~xcept the right to have it operated upon request under the terms of this Agreement. 4. Customer shall be responsible for installing and operating the APS equipment in conformance with the requirements of all applicable laws, rules, and regulations of governmental agencies having jurisdiction, including those controlling air quality. 5. Customer agrees to operate the APS on request from PGandE for a period not to exceed an aggregate of 300 hours per calendar year during actual or threatened power shortaggs; provided, however, Customer shall not be required to operate the APS when such operation is temporarily curtailed by order of any governmental agency or other authority having appropriate- jurisdiction. (PGandE expects that annual opera~ion hours will be substantially less than 300 hours.) 6. PGandE shall compensate Customer for the use gf the APS as provided in Attachment No. 1 (Compensation Schedule) which is a part of this Agreement. --- Agreement (continued) 7. Customer's APS is(are) described'in Attachment No. 2 (Equipment and Fuel Specifications and Operating Ratings), which is a part of this Agreement. 8. PGandE and Customer agree-to establish and follow certain necessary operating procpdures to properly carry out the terms and conditions of this Agreement. Such operating procedures are described in Attachment No. 3 (Operating Procedures), which is a part of this Agreement. 9. The attachments described in paragraphs 6, 7, and 8 above may be modified or superseded by mutual agreement and without formal amendment to this Agreement. Any such superseding attachments shall be dated and signed by both parties to this Agreement. 10. Compensation of Customer for the operation of the APS, as set forth in Attachment No. 1 (Compensation Schedule), is a separate transaction and will neither increase nor decrease Customer's monthly bills for PGandE's service. Customer will continue to be billed by PGandE monthly for PGandE's electric service under the regular applicable rate based on (a) the power delivered and metered by PGandE to Customer, plus (b) the power generated for Customer by the operation of the APS at PGandE's request, excluding any power generated during operation tests pursuant to Attachment No. 3 (Operating Procedures). 11. Each party shall indemnify the other, its officers, agents, and employees against all loss, damage, expense and liability to third perso'ns for injury to. or death of persons or injury to property, arising out of or resulting from the construction, ownership, operation, or maintenance of, or by.failure of, any of the indemnitor's works, equipment or facilities used in connection with this Agreement. Upon the request of the indemnitee, the indemnitor shall defend any suit asserting a claim covered by this indemnity. The indemnitor shall pay an~%~costs that may be incurred by the.indemnitee in enforcing this Agreement. 12. This Agreement shall be effective on the date hereof and shall continue in effect until terminated. Either party may terminate this Agreement by giving the other party 30 days written notice. 13. Customer may, with PCandE's written consent, assign this Agreement if the assignee will agree in writing to perform all of Customer's obligations under this Agreement. -2- 14. Unless otherwise stated, all written and oral communications and invoices shall be directed as follows: To PGandE: To Customer: Pacific Gas and Electric Company Attention: District Marketing Supervisor 450 Eastmoor Avenue Daly City, CA 94015 Telephone: (41p) 755-1236 City of South San Francisco Attention: Superintendent, Water Quality Control Plant 195 Belle Air Road South San Francisco, CA 94080 Telephone: (415) 877-8555 15. Customer shall not be compensated by any other PGandE load management program for any portion of the electric load reduction provided for in this Agreement. 16. This Agreement shall be subject to all of PGandE's applicable tariff schedules on file with and authorized by the California Public Utilities Commission, and shall at all times be subject to such changes or modifications as the Commission may direct from time to time in the exercise of its jurisdiction. Dated this 27th day of July , 19 83. By CITY OF SOUTH SAN FRANCISCO Customer Walter Birkelo Title City Manager ATTEST: Barbara A. Battaya City Clerk PACIFIC GAS ANDx.~?TRIC COMPANY ~ J~m~s M. Stea~n~ Manager, Commercial Department Attachments 1, 2, and 3 Form 79-256 February 1983 -3- APS COMPENSATION SCHEDULE ATTACHMENT ,NO. 1 DATED 7-27-83 1. APPLICABILITY The provisions.of this compensation schedule are applicable to electric power generated by the auxiliary power sources (APS) under the provisions of the Customer-owned Auxiliary Power Sources Agreement, dated 0u]y 27, 1983 , (Agreement) between City of South San Francisco (Customer) and Pacific Gas'and Electric Company (PGandE). This Compensation Schedule shall be in effect concurrently with that Agreement unless this schedule is modified or superseded by mutual'agreement. 2. COMPENSATION PGandE shall pay to Customer: (a) $20 per year per kw of usable A~S capacity, plus (b) the cost to replace fuel used by Customer under the provisions of the Agreement by reimbursing Customer for Customer's out-of-pocket costs for 'replacing such fuel. In the event Customer is unable to obtain replacement fuel used pursuant to this Agreement, then PGandg shall replace such fuel as is described in Attachment. No. 2. Payment for or replacement of fuel does not apply to fuel used duking operation tests as set forth in Attachment No. 3, paragraph 2. 3. SPECIAL CONDITIONS. (a) Customer's out-of-pocket.£uel costs shall be limited to the fuel cost, applicabl~ sales tax, and freight. (b) Customer shall submit to PGandE at the end of each billing month a -copy of the APS Operation Log, described in Attachment No. 3, paragraph 4, together with an invoice for any applicable fuel costs. Payment for fuel used under this Agreement shall be mailed by PGandE to Customer within 15-calendar days after receipt of invoice by PGandE. (c) When Customer's fuel is replaced by PGandE, it shall be of the 'quality stated in Attachment No. 2. Customer agrees that. PGandE will not be responsibl~e for any fuel spoilage or equipment damage that may occur as a result of storing or using such replaced fuel. (d) At Customer's option, PGandE shall make partial APS capacity payments monthly, quarterly or semiannually. Payment shall be mailed by the last day of the period so designated. Customer hereby elects to receive capacity payments monthly. ATTACHMENT NO. 2 DATED 7-27-83 '~ APS EQUIPMEN~ AND FUEL SPECIFICATIONS AND OPERATING RATINGS .. 1. APPLICABILITY These specifications and ratings are pursuant to provisions of the Customer-owned Auxiliary Power Sources Agreement, dated 0u]y 27, 1983 , (Agreement) between City. of South San Francisco (Customer) and Pacific Gas and Electric Company (PGandE) and shall be a part of and in effect Concurrently with that Agreement unless'these .specifications or ratings are modified or superseded by mutual agreement. 2. EQUIPMEN~ SPECIFICATIONS AND'OPERATING RATINGS Prior to execution of the APS agreement, PGandE and Customer jointly inspected and conducted.tests on Customer's APS as necessary at which time the specifications and ratings listed below were determined and agreed to for purposes of this Agreement. The usable APS capacity rating shall represent the average load that can be transferred to the APS between the hours of 12:00 p.m. and 6:00 p.m., Monday through' Friday, in the months of June, July, and August. (a) APS Unit 1 (i) Prime Mover: }lake Detroit.Diesel (2) , Diodel 9163-7305 (ii) Generator: Make _ . _ . Serial No. - 277/480 .volts, · (iii) Fuel storage capacity (iv) Usable APS capacity rating Kato , Model 500-47336-1111 , Nameplate output rating 2,000 kW, three phase, 60 hertz. 2,250 gal~Rns. 100. kW. (v) Rate of fuel use: 8 gallons per hour for the usable APS capacitf rating stated in (iv).above. (b) APS Unit 2 (i) Prime Mover: Make Caterpillar , Model D349 (ii) Generator: Serial No. 48O Nake Fairbanks-Morse , Model TBGZJ 8008 , Nameplate output rating 800 kW, volts, _ three phase, 60 hertz. (iii) Fuel storage capacity (seeAPS Unit l) gallons. (iv) Usable APS capacity rating 800 kW. (v) Rate of fuel use: 62 gallons per hour for the usable APS capacity rating stated in (iv) above. ATTACHMENT NO. 2 (cont.) (c) APS Unit 3 (i) Prime Hover: Hake Model - (ii) Generator: Make Serial No. volts, (iii) Fuel storage capacity · Model · Nameplate output rating phase, 60 hertz. gallons. kW, (iv) Usable APS.capacity rating kW. (v). Rate of fuel use: gallons per hour for the usable APS capacity rating stated in (iv) above .... 3. TOTAL OPERATING RATINGS (a) Total usable APS capacity rating: 900 kW. Unless Customer's. actual load reduction is metered or otherwise measured, this rating, together with the total operating hours other than for testing requested by PGandE within a billing month, will be used to determine the power generated by the APS for the purpose of adding the energy and the usable capacity to the regular service meter readings for monthly billings. (b) Total rate of fuel use: 70 gallons per hour. This rate of fuel use, together with the total operating hours other than fo~ testing requested by'PGandE within a billing month· will be used to determine the amount of fuel for which Customer shall be compensate~ under'this Agreement. 4. FUEL SUPPLIER (Most Recent) Name of Company: Address: Telephone: ( 415 ) Olympian Oil Company 260 Michele Court South San Francisco, CA ~ 94080 873-1244 5. FUEL QUALITY SPECIFICATIONS . If PGandE provides replacement fuel to Customer· and such. fuel is No. 2 diesel, then it shall be of the quality specified below: ' Minimum Maximum (a) Viscosity (b) Sulfur Content (c) Heat Content (d) Cetane Index (e) Ash (f) Water (g) Flash Point 1.4 Centi-Stokes 4.3 Centi-Stokes -- 0.50% 18,400 Btu/lb -- 40 -- -- 0.01% -- 0.05% 100°F 150°F ATTACHMENT NO. 3 DATED 7- 27-83 APS OPERATING PROCEDURES -_~ 1. APPLICABILITY These operating procedures are pursuant to provisions of the Customer-owned'Auxiliary Power Sources Agreement, dated 0u]y 27, 1983 , (Agreement) between City of South San Francisco (Customer) and Pacific Gas and Electric Company (PGandE)'and shall be a part of and in effect concurrently with that Agreement unless these procedures are modified or superseded by mutual agreement. 2. OPERATION TESTS Customer shall test the APS equipment to assure equipment reliability and state of readiness in accordance with the following schedule: (a) Periodic Testing Customer shall test the APS equipment under load for a minimum of .one time per month for a duration of at least one hour to assure equipment.reliability. Such testing shall be scheduled at a time mutually agreeable to Customer and PGandE. (b) Readiness Testing PGandE reserves the right to request without prior notification the operation of Customer's APS unit(s) during periods of adequate utility electric reserve margins for the purpose of testing the readiness of CUstomer's APS operating personnel and equipment. Such readiness testing shall be limited to two times per calendar year, each time not to exceed one hour, and shall occur on a weekday, excluding legal holidays, between the hours of 8:0~a.m. and 4:00 p.m. These readiness tests may'be used in substitution for Customer's next periodic test described in part (a) above. It is recognized that Customer may not be able to generate the usable APS capacity rating during each test because of insufficient available load. However, Customer agrees, for each test, to make every effort to generate at the usable APS capacity rating and shall transfer to the generator all those load-serving circuits which together normally provide the load used in establishing the usable~APS capacity rating. Customer and PGandE agree that the power generated during any test will not be used for determining the regular monthly power bill from PGandE, and the fuel consumed during the tests will not' be paid for or replaced by PGandE. . ATTACH?IEN~r NO. 3 (cont.)- 3. NOTICE TO OPERATE APS · When it is necessary for PGandE to request Customer to operate Customer's APS equipment, such requests shall be made by PGandE's designated representative located at 3235 - 18th Street, San Francisco , telephone (415) 781-4211,. Ext. 5211. PGandE shall make such requests to Customer's operator on duty at Water Quality Control Plant , telephone ~415) 877-8555. 4.~ APS OPERATIONS LOG (a) 'Customer shall at all times keep and maintain a detailed APS Operations Log (Log). The following operating information shall be recorded on the Log: --- (1) Date of APS operation. (2) Reason for operation: (i) Test (ii) PGandE request (iii) Emergency (loss of utility service) (iv) Other (3) Time APS started. (4) Time. APS shutdown. (5) Average load in kW transferred to APS. (6) Unit cost of fuel used (e.g., S/gallon). (b) PGandE shall have the right to review Customer's Log after each request for APS use. Customer shall submit to PGandE at the end of each billing month a copy of the APS Operations Log using the form provided by PGandE. 5. SPECIAL METERING (a) If the metering PGandE has in place at Customer's premises is capable of recording periodic changes in Customer's demand, no special metering shall be required. (b) If such metering is not in place, Customer shall make the mecessary wiring changes and provisions of facilities as approved by PGandE to accommodate PGandE's meters and metering transformers. Ail meters and metering transformers will be furnished, installed, owned, and maintained by PGandE at its own expense. 6. PREVENTION OF PARALLEL OPERATION Customer shall be responsible for the means of isolating Customer's loads to be supplied by the APS in fail-safe manner satisfactory to PGandE that will prevent parallel operation of the APS with PGandE's system, unless otherwise mutually agreed upon. If Customer desires to operate in parallel with PGandE's system, the conditions of such operation shall be outlined in a separate written agreement for parallel operation in accordance with PGandE's Electric Rule No. 21, Parallel Generation-Nonutility Owned. r , ATTACHMENT NO. 3 (cont.) 7. SCHEDULED OUTAGES · Outages of gP$ units for s~heduled maintenance shall not'occur during the months of Hay, June, July~ ~u§ust~ and September. 8. UNSCHEDULED OUTAGES Customer shall immediately notify PGandE of any unscheduled outages of Customer's APS which renders Customer wholly or partly unable to perform its obligations under this Agreement. In addition, Customer shall., within ten days, provide PGandE with written notice describing the particulars of the occurrence and the estimated duration of the outage.