# Presentation: 667864

## Parker-Davis Project Post-2008 Remarketing Existing Contract Amendment

- Western Area Power Administration
- Desert Southwest Region

## Purpose of Today’s Meeting

- 	To review and discuss the Parker-Davis Project draft contract amendments to implement decisions contained in the Federal Register Notice (68 FR 23709) published May 5, 2003, which became effective June 6, 2003

## Agenda

- Contract Amendment Process/Timeline
- Parker-Davis Project Re-marketing Current Status
- Contract Extension Amendment
- Contract Amendment Process/Timeline
- Comments and discussion

## Contract Amendment Process/Timeline

 10/1/2003:  Meeting with current P-DP Contractors

 10/6/2003: Draft Contract Amendments mailed out

 11/10/2003: Written Comments due 30-days after Receipt

  Next Steps depend on Comments received

  Western available for individual and group meetings upon request 

  When appropriate, executable Amendments will be mailed out for signature and return within 30 days of mailing	

-  10/1/2003:  Meeting with current P-DP Contractors
-  10/6/2003: Draft Contract Amendments mailed out
-  11/10/2003: Written Comments due 30-days after Receipt
-   Next Steps depend on Comments received
-   Western available for individual and group meetings upon request
-   When appropriate, executable Amendments will be mailed out for signature and return within 30 days of mailing

## Parker-Davis Project Post-2008 Remarketing: Current Status

- Notice of Decision Federal Register Notice (68 FR 23709) published May 5, 2003 (became effective June 6, 2003):
-   Application of Energy Planning and Management Program (EPAMP) 	Power Marketing Initiative (PMI) to the Parker-Davis Project (P-DP)
-   Post-2008 final allocations for existing P-DP contractors
-   20-year Contract Extension for existing P-DP Firm Electric Service (FES) 	contractors beyond October 1, 2008
-   Advance Funding to pay for Western and Bureau of Reclamation costs

## Preamble

- Added reference to statutory authority for advance funding:
- Contributed Funds Act
- Interior Department Appropriations Act for 1928
- Economy Act

## Explanatory Recitals

- Implement the Final FRN
- Application of the EPAMP PMI
- Advance funding
- Conforming modifications, including Original Contract extension thru September 30, 2028.
- Implement Amendment upon execution, except for the revised CROD which becomes effective October 1, 2008

## Term of Contract

Original Contract term extended to September 30, 2028

- Original Contract term extended to September 30, 2028

## Withdrawable and NonWithdrawable Firm Electric Service

Seasonal Contract Rate Of Delivery (CROD) and Seasonal Energy moved from body of contract to Exhibit A

- Seasonal Contract Rate Of Delivery (CROD) and Seasonal Energy moved from body of contract to Exhibit A

## Charge for Use of Non Parker-Davis Project Facilities (Added to Section 5.4)

- Contractor shall pay a monthly charge to Western for capacity reserved in facilities necessary to deliver electric service beyond the P-DP point(s) of delivery
- Western may waive the monthly charge
- Examples:  Mead and Liberty

## Advance Funding

  Added as a requirement in May 5, 2003 	Federal Register Notice (68 FR 23709)

  Contractors required to advance fund to pay for Western and Reclamation costs associated with P-DP electric service, as determined by the 			Rates Process

  Contractors shall pay no more through 	advance funding than they otherwise 			would pay through rates

-   Added as a requirement in May 5, 2003 	Federal Register Notice (68 FR 23709)
-   Contractors required to advance fund to pay for Western and Reclamation costs associated with P-DP electric service, as determined by the 			Rates Process
-   Contractors shall pay no more through 	advance funding than they otherwise 			would pay through rates

## Integrated Resource Plans (IRP) and Small Customer Plans

Conservation and Renewable Energy deleted

Integrated Resource Plans and Small Customer Plans inserted

Revised EPAMP final rule regarding IRP requirements 
(65 FR 16789), dated March 30, 2000

- Conservation and Renewable Energy deleted
- Integrated Resource Plans and Small Customer Plans inserted
- Revised EPAMP final rule regarding IRP requirements
- (65 FR 16789), dated March 30, 2000

## Fuel Replacement Energy Service

Deleted from contract since it is no longer applicable

- Deleted from contract since it is no longer applicable

## Exhibits Made a Part of Contract

- Exhibit A, current Monthly Delivery Obligations remain in effect thru September 30, 2008
- Preliminary Exhibit A-1 with post October 1, 2008 CROD & Seasonal Energy becomes effective October 1, 2008

## General Power Contracting Provisions (GPCP’s)

Adds revised GPCPs that are current at the time of contract execution

Current GPCPs dated July 10, 1998 are being revised:
	-Transfer of Interest language

- Adds revised GPCPs that are current at the time of contract execution
- Current GPCPs dated July 10, 1998 are being revised:
- 	-Transfer of Interest language

## Replacement Advances Reconciliation Surcharge

- Advancement of Funds for P-DP Generation,(Contract No. 98-DSR-10870) requires Western to establish an enforceable obligation to collect a surcharge to pay for undepreciated replacement advances
- Contractors with new P-DP allocations or an increased entitlement to receive electric service shall pay .... over a period of up to 5 years
- If the Contractor fails or refuses to pay ...the new P-DP allocation or increased entitlement to receive electric service shall be withdrawn with 60-day advance written notice

## Excess Energy

Defines P-DP electric services associated with Excess Energy:

		Excess Energy
		Excess Energy Banking
		Firming Energy

- Defines P-DP electric services associated with Excess Energy:
- 		Excess Energy
- 		Excess Energy Banking
- 		Firming Energy

## Term of Contract Amendment

- Becomes effective upon execution

## Original Contract

- Remains in full force and effect
- Amendment 1 subject to all provision of the Original Contract

## Exhibits

- Exhibit A --- Current Monthly Delivery Obligations
- Exhibit A-1 ---Monthly Delivery Obligations effective October 1, 2008
-  Exhibit C & D --- Charge for use of facilities

## Contract Amendment Process/Timeline

- 10/1/2003:  Meeting with current P-DP Contractors
- 10/6/2003:  Draft Contract Amendments mailed out
- 11/10/2003: Written Comments due 30-days after Receipt
-  Next Steps depend on Comments received
-  Western available for individual and group meetings upon request
-  When appropriate, executable Amendments will be mailed out for signature and return within 30 days of mailing

## Comments & Discussion