Document:

Assignment and Assumption of Long-Term Service Agreement No. 101.A

 EXHIBIT 10(E) 
  
 PINNACLEWEST ENERGY 
  
 April 9, 2003 
  
 VIA FEDERAL EXPRESS 
  
 Nevada Power Company 
 6262 W. Sahara 
 Las Vegas, NV 89151 
 Attention:  Carolyn Cowan 
  

	 	RE:	Assignment and Assumption of Long-Term Firm Point to Point Transmission Service Agreement No. 101.A 

  
 Dear Ms. Cowan: 
  
 The purpose of this letter is to provide to Nevada Power Company (“NPC”) the formal notice required by the Sierra Pacific Resources Open Access
Transmission Tariff (the “Tariff”) that Pinnacle West Energy Corporation (“PWEC”) has assigned all if its right, title and interest in Transmission Service Agreement No. l0lA to Pinnacle West Capital Corporation
(“PWCC”) in accordance with Section 23.1 of the Tariff. A copy of this assignment is attached. We request that NPC make any and all filings required in connection with the assignment with the Federal Energy Regulatory Commission, and,
change the name of the Transmission Customer under Service Agreement 101.A to PWCC. 
  
 If you have any questions or require any additional information, please do not hesitate to contact us. Thank you for your assistance. 
  
 Sincerely, 
  
 Ajoy K Banerjee 
 Vice President, Generation Expansion 
  
 Enclosure 
 cc:        Donald Brandt 
  

	 Page 1 
	 Contract Agreement 

 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 BETWEEN PINNACLE WEST ENERGY CORPORATION 
 AND PINNACLE WEST CAPITAL
CORPORATION 
  
 This Assignment and Assumption Agreement (this
“Agreement”) is entered into as of this 9th day of April, 2003 (the “Effective Date”) by and
between Pinnacle West Capital Corporation, an Arizona corporation (“PWCC”) and Pinnacle West Energy Corporation, an Arizona corporation (“PWEC”) (individually “Party” and collectively “Parties”). 

 
 WHEREAS, PWEC wishes to assign to PWCC all of its rights, obligations,
title and interest under and to the Service Agreement for Firm Point to Point Transmission Service l0l.A with Nevada Power Company (“NPC”) for 375 MW of transmission service (the “Transmission Contract”); and 
  
 WHEREAS, PWCC is willing to accept PWEC’s assignment of the Transmission
Contract and to assume all of PWEC’s rights and obligations thereunder; 
  
 NOW, THEREFORE, in consideration of the mutual promises stated herein, PWEC and PWCC hereby agree as follows: 
  

	1.	Defined Terms. Defined terms not otherwise defined in this Agreement shall have the meaning set forth for such term in the Transmission Contract. 

  

	2.	Assignment. PWEC hereby assigns, transfers and conveys to and for the benefit of PWCC, all of PWEC’s rights, title, interest, liabilities and obligations in, to and
under such Transmission Contract from and after the Effective Date. 

  

	3.	Assumption. PWCC hereby assumes and agrees to satisfy and perform all of PWEC’s rights, title, interest, liabilities and obligations under the Transmission Contract from
and after the Effective Date. 

  

	4.	Rollover Rights. If PWCC does not sell, assign, or transfer the Transmission Contract to a third party prior to its termination date and in the event PWCC does not intend to
exercise its rights of first refusal to extend the transmission services under the Transmission Contract in accordance with Section 2.2 of the Sierra Pacific Resources Open Access Transmission Tariff, PWCC shall notify PWEC in writing no less than
sixty (60) days prior to the deadline for exercise of such rights of first refusal under said Tariff. PWEC may within ten (10) days thereafter request PWCC to assign the Transmission Contract to PWEC. PWEC agrees to assume all rights, title,
interest, liabilities and obligations associated with the transmission service obtained through the exercise of such assignment. If PWCC assigns, sells or transfers the Transmission Contract to a third party arid PWCC obtains a right of first
refusal to extend the transmission services under the Transmission Contract from that third party, PWCC will offer such rights to PWEC as provided in accordance with this section 4. 

  

	 Page 2 
	 Contract Agreement 

	5.	Mutual Representations. Each Party hereby represents and warrants that: 

  

	 	a)	It has all requisite corporate power and authority to enter into this Agreement and to perform its respective obligations hereunder. 

  

	 	b)	This Agreement has been duly authorized, executed and delivered by such Party and is a legal, binding and valid obligation of such Party enforceable against it in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws from time to time in effect that affect creditors’ rights generally and by legal and equitable limitations
on the availability of specific remedies. 

  

	 	c)	The execution, delivery and performance by such Party of this Agreement, the consummation of the transactions contemplated hereby, and the compliance with the provisions hereof or
thereof, by such Party will not, with or without the passage of time or the giving of notice or both: 

  

	 	(i)	conflict with, constitute a breach or violation of any governmental approval held by or on behalf of such Party, the loss of which would reasonably be expected to have a material
adverse effect on such Party’s performance under this Agreement; 

  

	 	(ii)	conflict with or violate the certificate of incorporation or bylaws of such Party; or 

  

	 	(iii)	violate any requirements of law applicable to such Party. 

  

	 	d)	There is no claim or proceeding pending or threatened before or by any governmental authority or any other person that may have a material adverse effect on the performance by such
Party of its obligations hereunder. 

  

	6.	PWEC’s Representations. PWEC represents and warrants to PWCC that the Transmission Contract is in full force and effect and PWEC is not in default under the Transmission
Contract, nor to the best of PWEC’s knowledge is NPC in default under the Transmission Contract. PWEC has received no notice, and is not aware, of any conflict, violation, or breach of the Transmission Contract by either PWEC or NPC.

  

	7.	Mutual Indemnification. PWEC shall hold PWCC harmless and indemnify PWCC from all claims, costs and expenses arising out of or relating to any actual or alleged
misrepresentation, breach, default or non-performance of the Transmission Contract by PWEC prior to the Effective Date and PWCC shall hold PWEC harmless and indemnify PWEC from all claims, costs and expenses arising out of or relating to any actual
or alleged misrepresentation, breach, default or non-performance of the Transmission Contract by PWCC from and after the Effective Date. 

  

	 Page 3 
	 Contract Agreement 

	8.	Miscellaneous. 

  

	 	a)	Entire Agreement. This Agreement represents the entire agreement between the Parties and supersedes in its entirety all prior agreements concerning the subject matter hereof,
and no modification, amendment, revision, waiver, or other change shall be binding on either Party unless consented to in writing by the Party’s authorized representative. Any oral or written representation, warranty, course of dealing, or
trade usage not contained or referenced herein shall not be binding on either Party. Each Party agrees that it has not relied on, or been induced by, any representations of the other Party not contained in this Agreement. 

 

	 	b)	Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, except to the extent governed by federal law, without
regard to its principles governing conflicts of laws. 

  

	 	c)	No Third-Party Beneficiaries. The Parties agree that no other party is an intended third-party beneficiary of this Agreement. 

  

	 	d)	Successors and Assigns. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns.

  

	 	e)	Further Assurances. Each of PWEC and PWCC agrees that it will promptly execute and deliver all such further instruments and documents and take all further action as the other
party hereto may reasonably request in order to effectuate more fully the purposes of this Agreement. 

  

	 	f)	Captions. Captions and paragraph headings of this Agreement are solely for the convenience of the parties and are not a part of this Assignment Agreement or any provision
hereof. 

  

	 	g)	Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and both of which together shall constitute this Agreement.

  
 IN WITNESS WHEREOF the Parties have caused this
document to be executed by their authorized representatives on the date first above written. 
  
 [signatures to follow on page 4] 
  

	 Page 4 
	 Contract Agreement 

									
	 PINNACLE WEST CAPITAL
 CORPORATION
	 	 	 	 PINNACLE WEST ENERGY
 CORPORATION

					
	 By:
	 	  

	 	 	 	 By:
	 	  

	 	 	(Signature)	 	 	 	 	 	(Signature)
			
	 Donald E. Brandt

	 	 	 	 Ajoy K. Banerjee

	(Printed Name)	 	 	 	(Printed Name)
			
	 Senior Vice President and Chief Financial Officer

	 	 	 	 Vice President, Generation Expansion

	(Title)	 	 	 	(Title)
			
	 April 9, 2003

	 	 	 	 April 9, 2003

	(Date)	 	 	 	(Date)

  

	 Page 5 
	 Contract AgreementService Agreement No. 101.A. for Nevada Power Company

			
	EXHIBIT 10(F)	 	 
		
	Sierra Pacific Resources Operating Companies	 	 
	FERC Electric Tariff	 	 
	First Revised Volume No. 1	 	First Revised Service Agreement No. 101.A
	Open Access Transmission Tariff	 	(Assigned from Reliant TSA No. 101)  

  

 Page 1 of 6 
  

 Service Agreement For Long-Term 
 Firm Point-To-Point Transmission Service 
  

	1.0	This Service Agreement, dated as of December 12, 2002, as amended December 19, 2003, is entered into, by and between Nevada Power Company(“Transmission Provider”), and
Pinnacle West Capital Corporation, (Pinnacle West) (“Transmission Customer”). 

  

	2.0	The Transmission Customer has been determined by the Transmission Provider to have a Completed Application for Firm Point-To-Point Transmission Service under the Tariff.

  

	3.0	The Transmission Customer has provided to the Transmission Provider an Application deposit in accordance with the provisions of Section 17.3 of the Tariff.

  

	4.0	Service under this agreement shall commence on the later of (l) the requested service commencement date, or (2) the date on which construction of any Direct Assignment Facilities
and/or Network Upgrades are completed, or (3) such other date as it is permitted to become effective by the Commission. Service under this agreement shall terminate on the actual termination date or such date as mutually agreed upon by the parties.

  

	5.0	The Transmission Customer’s renewal rights under this agreement shall be as specified in Section 2.2 of the Transmission Provider’s Tariff as it may be amended from time
to time in accordance with FERC policy. In addition, in order to assist the Transmission Provider in planning its system appropriately, the Transmission Customer will communicate with the Transmission Provider on a nonbinding basis regarding its
assessment of whether it will renew this agreement as follows: 

  

	5.1	In the event the Transmission Customer signs a power sales contract that: (1) utilizes the transmission capacity provided for under this agreement, and (2) extends beyond this
agreement’s initial term, the Transmission Customer shall so notify the Transmission Provider (without identifying the parties to the power sales contract) and shall provide the Transmission Provider with the Transmission Customer’s
assessment of the likely impact of such contract on its intent to renew this agreement. 

  

	5.2	The Transmission Customer will on an annual basis, starting five years prior to the end of the initial term of this agreement, provide the Transmission Provider with a nonbinding
statement of its current assessment of whether it will renew this agreement. The Transmission Customer will, on Transmission Provider’s request, answer any reasonable questions the Transmission Provider has about such assessment; provided that
the Transmission Customer shall not be obligated to provide any confidential market data to the Transmission Provider. 

  
 Effective:    July 31, 2003 

			
	Sierra Pacific Resources Operating Companies	 	 
	FERC Electric Tariff	 	 
	First Revised Volume No. 1	 	First Revised Service Agreement No. 101.A
	Open Access Transmission Tariff	 	(Assigned from Reliant TSA No. 101)  

  

 Page 2 of 6 
  

	5.3	The Transmission Provider’s transmission personnel shall treat as confidential and proprietary all information provided by Transmission Customer under this Section 5.0, and
shall comply with FERC’s affiliate regulations and other applicable provisions of Order No. 889, or any successor requirements, in its treatment of such information; provided that this Section 5.3 shall not prevent the Transmission Provider
from providing information to FERC, the PUCN or any other agency of competent jurisdiction in accordance with applicable requirements of such agency or from compliance with any valid court order requiring the production of such information. The
Transmission Provider shall give the Transmission Customer notice of any such agency request or court order so that the Transmission Customer may take any action deemed necessary by the Transmission Customer to protect the confidentiality of the
requested information. 

  

	6.0	The Transmission Provider agrees to provide and the Transmission Customer agrees to take and pay for Firm Point-To-Point Transmission Service in accordance with the provisions of
Part II of the Tariff and this Service Agreement. 

  

	7.0	Any notice or request made to or by either Party regarding this Service Agreement shall be made to the representative of the other Party as indicated below.

  
 Effective:    July 31, 2003

			
	Sierra Pacific Resources Operating Companies	 	 
	FERC Electric Tariff	 	 
	First Revised Volume No. 1	 	First Revised Service Agreement No. 101.A
	Open Access Transmission Tariff	 	(Assigned from Reliant TSA No. 101)  

  

 Page 3 of 6 
  

	8.0	If any event occurs that will materially affect the time for completion of new facilities or the ability to complete them, Transmission Provider shall promptly notify the
Transmission Customer. A technical meeting between the Parties shall be held to evaluate the alternatives available. If the Transmission Provider and the Transmission Customer mutually agree that no other reasonable alternatives exist and the
requested service cannot be provided out of existing capability under the conditions of Part II of the Tariff, the obligation to provide the requested Firm Point-To-Point Transmission Service shall terminate and any deposit made by the Transmission
Customer shall be returned with interest pursuant to Commission regulations 35.19a(a) (2) (iii). However, the Transmission Customer shall be responsible for all prudently incurred costs by the Transmission Provider through the time construction was
suspended. 

  
 Transmission Provider:

  
 Director, Regional Transmission 

Nevada Power Company 
 P.O. Box 230 
 Las Vegas, NV 89151 
  
 Transmission Customer: 
  
 Pinnacle West Capital Corporation 
 P.O. Box 53999, Mail Station 8983 
 Phoenix, AZ 85072-3999 
  

	9.0	The Tariff is incorporated herein and made a part hereof. 

  

	10.0	This Service Agreement may be executed in counterparts, each one of which shall be deemed an original. 

  
 IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by their respective authorized officials.

  

							
	 	 	Transmission Provider:	 	 	 	 
				
	 By:
	 	  

	 	
	 	

	 	 	Name	 	Title	 	Date
				
	 	 	Transmission Customer:	 	 	 	 
				
	 By:
	 	  

	 	
	 	

	 	 	Name	 	Title	 	Date

  
 Effective:    July 31, 2003 

			
	Sierra Pacific Resources Operating Companies	 	 
	FERC Electric Tariff	 	 
	First Revised Volume No. 1	 	First Revised Service Agreement No. 101.A
	Open Access Transmission Tariff	 	(Assigned from Reliant TSA No. 101)  

  

 Page 4 of 6 
  

 Specifications For Long-Term Firm Point-To-Point  
 Transmission Service 
  

	1.0	Term of Transaction: 5 Year(s) 

  
 Start Date: 05-1-04 
  
 Termination Date: 04-30-09 
  

	 	1.1	Notwithstanding Section 17.7 of the Tariff or any other provision of the Tariff, the Start Date and initial Term of Transaction specified in Section 1.0 shall not be extended
or changed in any fashion without the written agreement of the Transmission Provider and Transmission Customer. Provided, however, that Transmission Customer shall retain its full rollover rights and queue position. 

  

	2.0	Description of capacity and energy to be transmitted by Transmission Provider including the electric Control Area in which the transaction originates. 

  
 375 MW from Harry Allen 500 kV Substation in Nevada Power Company’s
Control Area to Mead 230 kV Substation. 
  

					
	 3.0
	  	Point of Receipt	  	Delivering Party
			
	 	  	Harry Allen 500 kV Substation	  	Pinnacle West Capital Corporation

  

					
	 4.0
	  	Point of Delivery	  	Receiving Party
			
	 	  	Mead 230 kV Substation	  	Market

  

	5.0	Maximum amount of capacity and energy to be transmitted (Reserved Capacity): 375 MW 

  

	6.0	Designation of party(ies) subject to reciprocal service obligation: None 

  

	7.0	Name(s) of any Intervening Systems providing transmission service: None 

  

Effective:    July 31, 2003 

			
	Sierra Pacific Resources Operating Companies	 	 
	FERC Electric Tariff	 	 
	First Revised Volume No. 1	 	First Revised Service Agreement No. 101.A
	Open Access Transmission Tariff	 	(Assigned from Reliant TSA No. 101)  

  

 Page 5 of 6 
  

	8.0	Service under this Agreement may be subject to some combination of the charges detailed below. (The appropriate charges for individual transactions will be determined in accordance
with the terms and conditions of the Tariff.) 

  

	 	8.1	Transmission Charge: $1.21/kW-mo. 

  

	 	8.2	System Impact and/or Facilities Study Charge(s): 

 Pending finalization, $30,000 deposit in place. Reliant – Arrow Canyon will be responsible for the final actual costs. 
  

	 	8.3	Direct Assignment Facilities Charge: None under this TSA. However, Direct Assignment Facilities will be required to provide the associated interconnection and are defined in the
Interconnection & Operation Agreement. 

  

	 	8.4	Ancillary Services Charges: As negotiated in the future or as defined in Interconnection and Operation Agreement. 

  

	 	8.5.	Power Factor Requirements: As defined in Interconnection and Operation Agreement. 

  

	9.0	The Transmission Customer shall make payments (the “Extension Payments”) to compensate the Transmission Provider for extending the Start Date from July 31, 2003 to May 1,
2004. These Extension Payments shall be $138,061/month, and shall be made for each month from August 2003 through April 2004. The Transmission Provider shall invoice the Transmission Customer for the Extension Payments on a monthly basis
based on the billing provisions set out in the Tariff. The Transmission Customer shall not be obligated to make any other payment to the Transmission Provider for its extension, notwithstanding the currently effective provisions of Section 17.7, any
amendments thereto or any other provision of the Tariff. 

  

	10.0	The Transmission Customer will receive transmission credits during the extension period that may be applied against all point-to-point transmission uses by the Transmission Customer
from January 1, 2004, through April 30, 2004, originating at the Point of Receipt. No credits will be provided for imbalance or other ancillary services charges or for transmission under a Network Customer’s existing transmission rights. No
credits shall be provided under this settlement applicable to any transmission service that the Transmission Provider provides after April 30, 2004. 

  
 Effective:    July 31, 2003 

			
	Sierra Pacific Resources Operating Companies	 	 
	FERC Electric Tariff	 	 
	First Revised Volume No. 1	 	First Revised Service Agreement No. 101.A
	Open Access Transmission Tariff	 	(Assigned from Reliant TSA No. 101)  

  

 Page 6 of 6 
  

	 	10.1	The amount of the credits shall be as follows: 

  

	 	(A)	The Transmission Customer shall initially receive 273,750 MW-hours of transmission service credits. These credits shall be reduced as they are used as provided in Section 10.2
below. 

  

	 	(B)	The Transmission Provider shall post the availability of the Transmission Customer’s transmission capacity on its OASIS. The Transmission Customer’s credits will be
increased to the extent that posted capacity is resold, in such amounts as described in Section 10.2. 

  

	 	(C)	The Transmission Customer may freely exchange transmission credits with the Southern Nevada Water Authority (“SNWA”) by providing written notice to the Transmission
Provider. The Transmission Provider shall be entitled to rely upon any such notice, and the Transmission Customer shall assume all liability in the event that SNWA later disputes the Transmission Customer’s authority to provide such notice or
otherwise claims an entitlement to the credits that are the subject of the notice. 

  

	 	10.2	Transmission credits for point-to-point transmission uses by the Transmission Customer to enable the transmission of energy originating at the Point of Receipt will be reduced, and
transmission service credits for posted capacity that is resold shall be increased, as follows: For an hourly reservation, transmission service credits shall be equal to 1 hour times the reserved capacity. For a daily reservation, transmission
service credits shall be equal to 24 hours times the reserved capacity. For weekly service, transmission service credits shall be equal to 168 hours times the reserved capacity. For monthly reservations, transmission service credits shall be equal
to 730 hours times the reserved capacity. 

  

	 	10.3	In billing the Transmission Customer for each of the months in which the transmission credits apply, the Transmission Provider shall provide the Transmission Customer with an
accounting of the amount of transmission credits used and obtained in that month, as well as the amount of transmission credits that are remaining. 

  
 Effective:    July 31, 2003

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