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HomeMy WebLinkAboutBradley Chugach Electric Association 2890174 1992 1AGREEMENT Agreement No.2890174 COUNTERPART OF _|oF 2 BRADLEY LAKE HYDROELECTRIC PROJECT AGREEMENT FOR THE DISPATCH OF ELECTRIC POWER AND FOR RELATED SERVICES ("BRADLEY LAKE DISPATCH AGREEMENT") by and among CHUGACH ELECTRIC ASSOCIATION,INC. and THE ALASKA ENERGY AUTHORITY DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY 9104\ID1801(1)" THIS AGREEMENT is entered into on ____2/19/92 ,by and amongCHUGACHELECTRICASSOCIATION,INC.("Chugach"),the STATE OFALASKA,ALASKA ENERGY AUTHORITY ("Authority"),hereinaftercollectivelyreferredtoas"Parties." SECTION 1.RECITALS (a)The Authority owns the Bradley Lake Hydroelectric Project("Project"),and has sold the output to various utilities ("Purchasers"),includingChugach,under the Power Sales Agreement.(b)Chugach is designated as the dispatcher of energy from the Project("Dispatcher"),and as the entity providing wheeling and related services to the otherPurchasersunderan"Agreement For the Wheeling of Electric Power and forRelatedServices"(the "Services Agreement".) SECTION 2.NATURE OF AGREEMENT Chugach will provide all of the Dispatch Services needed to dispatch Projectoutput.This Agreement sets forth the rights and duties of the parties relating to theprovisionofDispatchServices. SECTION 3.TERM OF AGREEMENT;RELATED MATTERS (a)Term. (i)This Agreement will be effective when executed and after ithasreceivedapprovalbytheBradleyLakeProjectManagementCommittee. (ii)This Agreement will remain in effect for the term of theServicesAgreementunless,under the terms of the Services Agreement,Chugach is replaced as Dispatcher,in which case it will terminate whenChugachceasestobetheDispatcher. (b)Amendments.Except as limited by the Services Agreement,thisAgreementmaybeamended,extended,or terminated at any time by thewrittenconsentofthePartiesandtheapprovaloftheBradleyLakeProjectManagementCommittee. SECTION 4.DUTIES OF THE DISPATCHER (a)Duties.The Dispatcher's duties shall be as set forth in Section 8(a)(i)of the Services Agreement and any applicable operating criteria or guidelinesadoptedbytheProjectManagementCommitteeandsetforthasScopeofDispatchDutiesintheAllocationandSchedulingProcedures,or as agreed or amended bytheDispatcherandauthorizedrepresentativesofthepartiespursuanttoSection8(a)of the Services Agreement. (b)Limitations on Dispatcher's duties.Subject to the limitations onChugach's duties set forth in Sections 7(b)and (c)of the Services Agreement, DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY 91Q4\JD1801(2) Chugach will dispatch the Project's output consistent with prudent utility practice asdefinedinSection1(x)of the Power Sales Agreement,for the benefit of theintegratedsystem.This Agreement shall not require Chugach to install or operateonChugach's system any facilities or equipment that Chugach would not otherwisehaveinstalledoroperatedonthatsystemunlessthoseadditionalfacilitiesorequipmentare:(a)funded and approved in advance and in writing by the BPMCand(2)not detrimental to Chugach's system or operations. SECTION 5.REIMBURSEMENT.&RELATED MATTERS (a)In accordance with a schedule provided by the Authority,ChugachshallprepareandsubmiteachyeartotheAuthorityadraftbudgetfordispatchservicesforthefollowingbudgetyear.Such draft budget shall specifically include: (i)Labor and related costs: (A)The personnel costs attributable to performing thedutiesofDispatcher(as distinct from personnel cost that Chugachwouldnecessarilyincurinoperatingandmaintainingitsownsystem);and (B)The costs of training personnel to perform the duties ofDispatcher,including familiarization with Project facilities andequipmentthroughsitevisits,training and by other means. (ii)|The costs of computer equipment used for dispatching theProject's output,or,if such hardware and/or software serves multiplepurposes,then the portion of such costs fairly allocable to that portion of thehardwareand/or software capability that is needed for the purpose ofdispatchingtheProject's output.The Bradley Lake allocation of these costsshallbedocumentedannually. (b)The draft budget shall be prepared in a format agreeable to theAuthority,and shall be based on a reasonable estimate of all anticipatedexpendituresfordispatchingandmaintainingtheProjectFacilityduringthebudget year. (c)The Authority shall review the draft budget and forward itsrecommendedbudgetforBPMCapproval. (d)The Dispatcher shall perform its duties in a manner consistent withtheBPMCapprovedBudget,and shall be responsible to perform only theobligationsfundedbysuchbudget.If the Dispatcher makes a determination duringanybudgetyearthatitcannotoperatewithinitsbudget,the Dispatcher shall reportsuchfindingtotheAuthorityandshallsubmitarevisedbudgetforAuthorityreview,and BPMC approval,if necessary. SECTION 6.DISPUTE RESOLUTION Consistent with the procedures established in Section 10(b)of the ServicesAgreement,the Parties shall attempt in good faith to settle reasonably any claim or DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY 91Q4\JD1801(3) controversy arising out of this Agreement.In addition to the procedures establishedbySection10(b)of the Services Agreement,the Parties may unanimously agree tosubmitanyclaimorcontroversytoamutually-acceptable mediator.The allocationofcostsforsuchmediationshallbedeterminedbythemediator.The use of such aprocedureshallnotbeconstruedtoaffectadverselytherightsofanyPartyunderthedoctrinesoflaches,waiver or estoppel.Except as limited by Section 10(b)of theServicesAgreement,nothing in this section shall prevent any Party from resorting tojudicialprocedures.Any judicial action shall be filed in the Superior Court for theStateofAlaskaatAnchorage. SECTION 7.MISCELLANEOUS PROVISIONS (a)Chugach as agent for the Authority.As Dispatcher,Chugach acts astheagentfortheAuthoritytodispatchProjectoutputonbehalfoftheAuthoritysothattheAuthorityisabletosellthatoutput.In consideration for Chugach acting asDispatcher,the Authority will therefore,indemnify and hold Chugach harmiessfromallclaimsagainstChugachinitscapacityasDispatcher,and from all claimsbasedonChugach's acts or omissions as Dispatcher,to the full extent permitted bylaw;provided,that the Authority shall not indemnify or hold Chugach harmless totheextentofanyliabilityarisingfromChugach's gross negligence or Chugach'swanton,willful,or intentional misconduct. (b)Consultation.The Parties shall meet with the purchasers as required,but not less than quarterly,as required by §10(a)of the Services Agreement.(c)Waiver.Any waiver at any time by either Party of its rights withrespecttoanydefaultoftheotherParty,or with respect to any other matter arisinginconnectionwiththisAgreement,shall not be considered a waiver with respect toanypriororsubsequentdefault,right or matter.(d)Successors and Assigns.This Agreement and all of the terms andprovisionshereofshallbebindinguponandinsuretothebenefitoftherespectivesuccessorsandassigneesoftheParties;provided,that no assignment or othertransferofthisAgreementoranyinteresthereundershallbeeffectivewithoutthepriorwrittenconsentoftheotherParties(which consent shall not be unreasonablywithheld),and any successor or assignee must,in the commercially reasonableopinionoftheotherParty,be capable of assuming the obligations of the Party fromwhichthesuccessororassigneehasacceptedassignmentorothertransfer.ThisSection7(b)shall not prevent any assignment of a Party's rights hereunder forsecuritypurposesonly,and shall not prevent a financing entity with recorded orsecuredrightsfromexercisingallrightsandremediesavailabletoitunderlaworcontract,provided that performance of this Agreement is not thereby impaired.(a)Performance Pending Resolution of Disputes.Pending resolution ofanydispute,each Party shall continue to perform its obligations under thisAgreement,including but not limited to the Authority's obligation to reimburseChugachforcertaincostsunderSection5ofthisAgreement.Each Party shall beentitledtoseekimmediatejudicialenforcementofthiscontinuedperformanceobligationnotwithstandingtheexistenceofadispute.Application for suchenforcementshallbemadetotheSuperiorCourtfortheStateofAlaskain Anchorage.(f)Applicable Law.The laws of the State of Alaska shall govern theinterpretationandapplicationofthisAgreementandtheactionsofthePartieshereto. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY 91Q4\JD1801(4) (g)Section Headings.The section headings in the Agreement are forconvenienceonly,and do not purport to and shall not be deemed to define,limit orextendthescopeorintentofthesectiontowhichtheypertain.(h)'Timing of Cost Reimbursement.Cost reimbursement payments fromtheAuthorityshallbedueintheofficesofChugachbythe15thdayofeachmonth.Payment shall be mailed,directly deposited to Chugach,or may be paid in person,to Chugach's main office in Anchorage,Alaska.(i)No Third Party Beneficiaries or Liability to Third Parties.Notwithstanding that the operation of this Agreement may and is intended to conferbenefitsonthirdparties,other than signatures of the Power Sales Agreement,whoarenotsignatoriestothisAgreement,in promising performance to one anotherunderthisAgreementthePartiesintendtocreatebindinglegalobligationsandrightsofenforcementin(i)one another,and;(ii)one another's assignees orsuccessorsininterest.The Parties expressly do not intend to create any obligationorliability,or promise any performance to,any third party (including withoutlimitationanyindividualorentitysuppliedwithelectricpowerbyeitherPartyorbyanythirdparty.)The Parties have not created for any third party other thansignaturestothePowerSalesAgreementanyrighttoenforcethisAgreement.(j)Force Majeure.If and to the extent that any Party is prevented by aneventoroccurrencebeyonditscontrolfromperforminganyobligationunderthisAgreement(other than the obligation to pay money),then that Party's performanceofsuchobligationshallbeexcused,but only to the extent and for the period thatsuchperformanceissoprevented.(k)Other Agreements.This Agreement does not modify,alter,or amendanyothercontractoragreementthatnowexistsorthatmayinthefutureexistbetweentheParties.The Parties intend that this Agreement should be interpretedinamannercompatiblewithothercontractsandagreementsassociatedwiththeProject. SECTION 8.RELATIONSHIP TO SERVICES AGREEMENT To the extent that the terms of the Services Agreement are incorporated byspecificreferenceintothisAgreement,such specific terms shall be binding on theAuthority,without regard to whether such party is also signatory to the ServicesAgreement. SECTION 9.DEFINITIONS a Agreement.This Agreement governing dispatch of Project output.b Alaska Energy Authority.The Alaska Energy Authority,an agency oftheStateofAlaska,and any successor thereto as owner of the Bradley LakeHydroelectricProject.c)Authority.The Alaska Energy Authority.d)Bradley Lake Energy.Electric energy,expressed in kilowatt hours(kwh),generated at the Bradley Lake Hydroelectric Project for a Party in a mannerconsistentwiththePowerSalesAgreementandtheapplicablecriteria,procedures,and guidelines adopted by the Project Management Committee.As used in thisAgreement,Bradley Lake Energy does not include energy produced by generatorsotherthanthoselocatedattheBradleyLakeHydroelectricProject,regardless ofwhetherenergyorcapacityfromsuchothergeneratorsisormaybesoldtoa DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY 91Q4\JD1801(5) Purchaser pursuant to provisions of the Power Sales Agreement relating to reservesfortheProject.(e)BPMC or Bradley Project Management Committee.The committeecomposedoftheAuthorityandthePartiesestablishedunderthePowerSales Agreement.(f)Dispatcher.Employee(s)of Chugach who perform or supervise theperformanceofthosethatrelatetothedispatchingofProjectoutputpursuanttothisAgreement.(g)Dispatch Services.Those duties with respect to the Project thatChugachperformsastheAuthority's agent under this AgreementhParty.Either Chugach or the Alaska Energy Authority.i)Power Sales Agreement.The agreement for the sale and purchase ofelectricpowerfromtheProjectenteredintobyandamongtheAuthorityandthePurchasers. i)Project.The Bradley Lake Hydroelectric Project.k)Purchaser.Any electric utility that buys Project power as a party tothePowerSalesAgreement. IN WITNESS WHEREOF,the parties have caused this Agreement to beexecutedthedayandyearfirstabovewritten. CHUGACH ELECTRIC ASSOCIATION,INC. tT - As:General Manager vecut ve ds tre ttre DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY 91Q4\JD1801(6)