Document:

exhibit101.htm

    Exhibit
10.1

     

    

    

    AMENDMENT
NO. 1

     

    TO

     

    POWER
SALES CONTRACT

     

    BETWEEN

     

    PUBLIC
UTILITY DISTRICT NO. 1 OF CHELAN COUNTY, WASHINGTON

     

    AND

     

    PUGET
SOUND POWER AND LIGHT COMPANY

     

    

    This
Contract Amendment, made and entered into as of the 4th day of
October, 1961, by and between Public Utility District No. 1 of Chelan County,
Washington (hereinafter called the "District"), a municipal corporation
organized and existing under the laws of the State of Washington, and Puget
Sound Power and Light Company (hereinafter called the "Purchaser"), a private
corporation organized and existing under the laws of the State of Washington
(formerly a Massachusetts corporation).

     

    W  I  T  N  E  S  S  E  T  H  :

     

    WHEREAS,
the parties hereto entered into a Power Sales Contract dated as of November 14,
1957, which contract is in full force and effect, providing, inter alia, for the
sale of power and energy from the District's Rocky Reach Hydroelectric Project
(Federal Power Commission Licensed Project No. 2145), now under construction and
hereinafter referred to as the "Project"; and

     

    WHEREAS,
as an integral part of the Project, the District has constructed a 230 KV
transmission line to connect the generating station of the Project with the
transmission facilities of Bonneville Power Administration (hereinafter referred
to as "Bonneville") at Bonneville's Columbia Substation, which transmission line
establishes an additional point of interconnection between the transmission
facilities of the Project and the transmission facilities of Bonneville;
and

     

    WHEREAS,
the parties hereto desire to amend said Power Sales Contract to provide for
additional points of delivery of power and energy from the Project to the
Purchaser under said Power Sales Contract from the 230 KV transmission
facilities of the Project and to agree upon other matters made necessary as a
result of the construction of said transmission line.

     

    NOW,
THEREFORE, for and in consideration of the premises and of the covenants and
undertakings of the parties hereinafter set forth, and subject to the provisions
of the District's Bond Resolutions No. 1412 and No. 1860, and to the provisions
of the Federal Power Commission License No. 2145, the parties hereto covenant
and agree that said Power Sales Contract be and the same hereby is amended by
deleting the whole of Section 12 thereof and substituting in lieu thereof a new
Section 12 to read as follows:

     

    "Section
12.  Points of
Delivery.  The power and energy to be made available to the
Purchaser by the District hereunder shall be delivered at 230 KV and at the
purchaser's request delivered at (a) the Project switchyard at the point or
points of termination of any non-Project transmission lines and/or (b) any point
where the 230 KV transmission facilities of the Project connect with non-Project
facilities and/or (c) other points of delivery as may be agreed upon from time
to time; provided, however, that except as provided in the next succeeding
paragraph of this Section 12 the power and energy to be delivered to the
Purchaser at all points of delivery specified in (b) above shall not exceed the
capacity of Project transmission facilities between the Project switchyard and
all said points of delivery multiplied by the Purchaser's Allotment; the amount
so determined being hereinafter referred to as 'Purchaser's Share of
Transmission Capacity.'

     

    "Each
Purchaser of power and energy from the Project shall have the right, without
additional charge by the District, to use or assign to another such Purchaser
its Purchaser's Share of Transmission Capacity to transmit Project and/or
non-Project power and energy.  During any time transmission capacity
is not used or assigned by a Purchaser entitled to the same or any transmission
capacity is made available by opposed power flow, such capacity shall be divided
among Purchasers desiring the same in proportion to their Purchaser's
Allotments."

     

    
    

    
    

    IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals as
of the day and year first above written.

    

    
      	 
      	
              PUBLIC
      UTILITY DISTRICT NO. 1 OF CHELAN COUNTY, WASHINGTON

               

              By                     /s/ Ivan J.
      Compton              

            
	 
      	
                                               
      President

            
	
              (SEAL)

            	 
      
	 
      	 
      
	
              ATTEST:

            	 
      
	 
      	 
      
	
                                     /s/
      L. J.
      Richardson                    
        

                                             
      Secretary

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              PUGET
      SOUND POWER AND LIGHT COMPANY

               

              By                     /s/ L. E.
      Karrer                         

                                        
        Vice President

            
	 
      	 
      
	
              (SEAL)

            	 
      
	 
      	 
      
	
              ATTEST:

            	 
      
	 
      	 
      
	
                                   
      /s/ Ralph M.
      Davis                        
      

                                              Secretaryexhibit102.htm

    Exhibit
10.2

     

    AMENDMENT
TO

     

    POWER
SALES CONTRACT

     

    Executed
by

     

    PUBLIC
UTILITY DISTRICT NO. 1 OF

     

    DOUGLAS
COUNTY, WASHINGTON

     

    AND

     

    PUGET
SOUND POWER & LIGHT COMPANY

     

    

    THIS AMENDMENT is made and
entered into as of the 9th day of February, 1965 between Public Utility District
No. 1 of Douglas County, Washington (hereinafter called “Douglas”), a
municipal corporation of the State of Washington, and Puget Sound Power &
Light Company (hereinafter called the “Purchaser”), a corporation organized and
existing under the laws of the State of Washington:

     

    W
i t n e s s e t h :

     

    Whereas,
Douglas and the Purchaser have heretofore entered into a contract (hereinafter
called the “Power Sales Contract”), as of the 18th day of September, 1963, and
Douglas and the other three Purchasers have heretofore entered into similar
contracts, to provide for the sale by Douglas, and the purchase by the
Purchasers, of power and energy to be produced by the Wells Project in excess of
the amounts required to provide for the actual and prospective needs of Douglas;
and

     

    Whereas,
Douglas holds a license, issued July 12, 1962, as amended, from the Federal
Power Commission for Project No. 2149 which, together with an order of said
Commission, permits the inclusion in the electric generating plant of three
generating units in addition to the initial seven generating units included
therein; and

     

    Whereas,
Douglas proposes to issue additional bonds to provide funds for defraying the
cost of acquisition, construction and installation of such three additional
generating units; the First Bond Resolution permits additional bonds to be
issued for such purpose, payable from the revenues of the Project on a parity
with the 1963 Bonds and secured by an equal charge and lien on such revenues;
and the First Bond Resolution requires, among other things, as conditions
precedent to the issuance of such additional bonds that Douglas shall have in
effect contracts for the sale of power and energy available from such additional
generating units, which contracts, among other things, shall contain terms with
respect to payments for such power and energy, no less favorable to Douglas than
the terms of the Power Sales Contracts; and

     

    Whereas,
Douglas and the Purchasers desire to amend the Power Sales Contracts to provide
for the sale and purchase of the additional power and energy available from such
three additional generating units upon the same terms and conditions as are
applicable to the sale and purchase of the power and energy available from the
initial seven generating units; and

     

    Whereas,
Douglas has the responsibility and the authority for the financing, construction
and operation of such three additional generating units;

     

    Now,
Therefore, For and in Consideration of the Mutual Covenants and Agreements
Herein Contained, It is Agreed by and Between the Parties Hereto as
Follows:

     

    Article
I.   Definitions of Terms used in this
Amendment.

     

    As used
in this Amendment, the term “Power Sales Contracts” shall mean the Power Sales
Contract and the similar contracts entered into, as of the 18th day of
September, 1963, with the other Purchasers.

     

    All other
terms used in this Amendment shall have the respective meanings set forth in
Section 2 or elsewhere in the Power Sales Contract except as otherwise
provided in Article II of this Amendment.

     

    Article
II.   Amendment
of Definitions in the Power Sales Contract.

     

    The
definitions contained in Section 2 of the Power Sales Contract are hereby
amended as follows:

     

    (1)           “Wells
Project”.  For purposes of Sections 18 and 19 of the Power
Sales Contracts, and for purposes of the terms “Commencement of Normal Routine
Operation” and “Initial Date of Delivery” as such terms are used throughout the
Power Sales Contracts, “Wells
Project” shall have the meaning set forth in Section 2(c) of the
Power Sales Contracts; but for all other purposes of the Power Sales Contracts
(including, but without limitation, for purposes of the terms “Wells Project
Output” and “Cost of Acquisition and Construction”), “Wells Project” shall have the
meaning defined in said Section 2(c) but shall also include, in addition to the
initial seven generating units, the three additional generating units being
provided from the proceeds of the 1965 Bonds.

     

    (2)           “Revenue Bonds” shall mean the
1963 Bonds issued under the First Bond Resolution, and the 1965 Bonds issued
under the First Supplemental Resolution, for the purpose of paying the Cost of
Acquisition and Construction and any other bonds (including bonds referred to in
Section 5(c) hereof) which, by the terms of the First Bond Resolution, are
permitted to be issued payable from the revenues of the Wells Project on a
parity with the 1963 Bonds and secured by an equal charge and lien on such
revenues.  The term “1963 Bonds” shall mean the
$184,000,000 principal amount of Wells Hydroelectric Revenue Bonds, Series of
1963; and the term “1965
Bonds” shall mean the additional bonds issued under the First
Supplemental Resolution to provide funds, among other things, to defray the cost
of acquisition, construction and installation of such three additional
generating units.

     

    (3)           “Cost of Acquisition and
Construction” shall mean all costs of acquisition, construction,
installation and financing of the Wells Project, heretofore or hereafter paid or
accrued, including but not limited to:

     

    (a)           Working
capital of Douglas in the amount of $1,500,000; provided that if it shall at any
time appear that the amount of working capital on hand is in excess of that
which is necessary or in excess of anticipated requirements in the future, such
amount may be reduced as referred to in Section 6(g) hereof;

     

    (b)           Establishing
a Reserve Account in the Bond Fund pursuant to the First Bond Resolution to the
extent of one year’s interest on the 1963 Bonds and a reserve account in the
bond fund for the 1965 Bonds pursuant to the First Supplemental Resolution to
the extent of one year’s interest on the 1965 Bonds;

     

    (c)           Establishing
a Reserve and Contingency Fund in the amount of $5,000,000 pursuant to the First
Bond Resolution;

     

    (d)           Interest
accruing on the 1963 Bonds until Commencement of Normal Routine Operation or
until January 1, 1969, whichever is later, and interest accruing on the
1965 Bonds until September 1, 1972, except for such interest as is payable
by the Purchasers as part of Annual Power Costs for the Interim Delivery Period;
and

     

    (e)           All
other items relating to payment of costs in connection with the acquisition,
construction, installation and financing of the Wells Project to the extent such
items constitute “Cost of Construction” as defined in Section 6.9 of the
First Bond Resolution or “Cost of Additional Units” as defined in
Section 1.2 C of the First Supplemental Resolution.

     

    (4)           Section 2(m)
of the Power Sales Contract is amended to read as follows:

     

    “(m)        ‘Bond
Resolution’ shall mean collectively the First Bond Resolution, the First
Supplemental Resolution and all other resolutions adopted by Douglas authorizing
the issue of Revenue Bonds.  The term ‘First-Bond- Resolution’ shall
mean Resolution No. 688 adopted by Douglas on October 4, 1963, a
certified copy of which has been delivered to the Purchaser; and the term ‘First
Supplemental Resolution’ shall mean Resolution No. 1096, adopted by Douglas
on February 9, 1965, a certified copy of which has been delivered to the
Purchaser.”

     

    Article
III.   Other
Amendments to the Power Sales Contract.

     

    Section 1
of the Power Sales Contract is amended to read as follows:

     

    “Section
1.   Term of
Contract.  This contract shall be in full force and effect
until midnight of August 31, 2018, or until the 1963 Bonds, all Completion
Bonds as defined in the First Bond Resolution, and the 1965 Bonds are paid or
provision is made for the retirement thereof, whichever is later.”

     

    Clause (ii)
of Section 5 (b) (2) of the Power Sales Contract is amended to read as
follows:

     

    “(ii)
that proportion (not exceeding 100%) of the interest and principal payments
accruing during the Interim Delivery Period on all outstanding Revenue Bonds
(other than interest accruing on the 1965 Bonds during the Interim Delivery
Period and prior to September 1, 1972) which the number of generating units
installed, successfully tested as required by the specifications, except for the
index tests, and made ready and available for normal continuous operation bears
to the number seven (7), provided that the seventh unit shall not be deemed to
be so ready until the Commencement of Normal Routine Operation.”

     

    Section 19
of the Power Sales Contract is amended by adding thereto the following
sentence:  “Douglas further agrees to proceed diligently with the
financing of the three additional generating units and, subject to
Uncontrollable Forces, plans to complete the acquisition, construction and
installation of such three additional generating units by March 1,
1969.”

     

    Section 26
of the Power Sales Contract is amended to read as follows:

     

    “Section 26.   Modification of Contract
Terms.  It is recognized by the parties hereto that, by virtue
of the Bond Resolution, this contract cannot be amended, modified or otherwise
altered by agreement of the parties in any manner that will impair or adversely
affect the security afforded by the provisions of this contract for the purchase
and sale of a portion of Wells Project Output for the payment of the principal,
interest and premium, if any, on Revenue Bonds as they respectively become
payable, as long as any of the Revenue Bonds are outstanding and unpaid or until
provision is irrevocably made for the payment thereof.”

     

    In
Witness Whereof, the parties hereto have caused this agreement to be executed by
their proper officers respectively, being thereunto duly authorized, and their
respective corporate seals to be hereto affixed, the day and year first above
written.

     

    
      	 
      	 
      	
              Public
      Utility District No. 1 of

              Douglas
      County, Washington

            
	 
      	 
      	 
      
	
               

              (Seal)

            	 
      	
              By           /s/
      Lloyd McLean

              President

            
	 
      	 
      	 
      
	 
      	 
      	
              By           /s/
      Michael Doneen

              Vice
  President

            
	 
      	 
      	 
      
	
              Attest:

            	 
      	 
      
	 
      	 
      	 
      
	
              /s/
      Howard Prey

            	 
      	 
      
	
              Secretary

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              Puget
      Sound Power & Light Company

            
	
              (Seal)

            	 
      	 
      
	 
      	 
      	
              By           /s/
      Ralph M. Davis

              President

            
	 
      	 
      	 
      
	
              Attest:

            	 
      	 
      
	 
      	 
      	 
      
	
              /s/                 J.
      H. King

              Asst. Secretary

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