Exhibit 10.7
THIRD AMENDMENT
to the
INTERCONNECTION AGREEMENT
,dated May 1, 1992,
among
INDIANAPOLIS POWER & LIGHT COMPANY
and
PSI ENERGY, INC.
and
CINERGY SERVICES, INC.
Dated June 30, 1995
INDIANAPOLIS POWER & LIGHT COMPANY
FEDERAL ENERGY REGULATORY COMMISSION
Rate Schedule FERC No. 23
CINERGY COMPANIES
FEDERAL ENERGY REGULATORY COMMISSION
Rate Schedule FERC No. 10
INDEX
SECTION ONE: Agreement As Amended
Interconnection Agreement Between
Indianapolis Power & Light Company, and
The Cincinnati Gas & Electric Company,
PSI Energy, Inc., and CINergy Services, Inc.,
dated June 30, 1995
SECTION TWO: Agreement As Signed
Interconnection Agreement Between
Indianapolis Power & Light Company, and
The Cincinnati Gas & Electric Company,
PSI Energy, Inc., and CINergy Services, Inc.,
dated June 30, 1995
THIRD AMENDMENT
TO THE
INTERCONNECTION AGREEMENT
AMONG
INDIANAPOLIS POWER & LIGHT COMPANY
and
PSI ENERGY, INC.
AND CINERGY SERVICES, INC.
0.01 THIS THIRD AMENDMENT, dated on the 30th day of June
1995, among INDIANAPOLIS POWER & LIGHT COMPANY (hereinafter
referred to as "IPL"), a corporation organized and existing
under the laws of the State of Indiana and PSI ENERGY, INC.
(hereinafter referred to as "PSI"), a corporation organized
and existing under the laws of the State of Indiana, and
CINERGY SERVICES, INC. (hereinafter referred to as "CINergy
Services"), a corporation organized and existing under the
laws of the State of Delaware. IPL, PSI and CINergy Services
are sometimes hereinafter referred to individually as "Party"
and collectively as "Parties" where appropriate.
W I T N E S S E T H:
0.02 WHEREAS, There is now in force and effect between
IPL and PSI an Interconnection Agreement, dated as of May 1,
1992, (said Interconnection Agreement being the Ninth
Supplement to the 1962 Interconnection Agreement between IPL
and PSI, herein called the "1992 Agreement"); and
0.03 WHEREAS, The Cincinnati Gas & Electric Company
("CG&E") and PSI merged on October 24, 1994, and formed
CINergy Corp. with CG&E and PSI now being called the "CINergy
Operating Companies"; and
0.04 WHEREAS, CG&E, PSI and CINergy Services are parties
to a Service Agreement, dated March 2, 1994, which has been
approved by the Securities and Exchange Commission and the
Indiana Utility Regulatory Commission (IURC), under which
CINergy Services will act as PSI*s agent in administering
PSI*s interconnection agreements and the three companies are
also parties to an Operating Agreement, dated March 2, 1994,
on file with and accepted by the FERC and approved by the
IURC under which CINergy Services will dispatch the
generating units of CG&E, PSI and CINergy Services; and
0.05 WHEREAS, the Parties desire to modify the 1992
Agreement, as hereinafter set forth; and
0.06 NOW, THEREFORE, in consideration of the premises
and mutual covenants and agreements of the Parties, as herein
set forth, the Parties hereby agree as follows:
ARTICLE 1
PROVISIONS FOR, AND CONTINUITY OF
INTERCONNECTED OPERATION
1.01. Interconnection Points. The respective
138,00 volt and 345,000 volt transmission systems of IPL and
PSI are presently interconnected at the following points:
(i) The 138kV Five Points Interconnection Point
(ii) The 345kV Whitestown Interconnection Point
(iii) The 345kV Gwynneville Interconnection Point
(iv) The 138kV Petersburg Interconnection Point
(v) The 345kV Petersburg Interconnection Point
(vi) The 138kV Centerton Interconnection Point
(vii) The 138kV Carmel Tap Point
1.02. Future Interconnection Points. The services
provided for by the 1992 Agreement may also be rendered
through such other points of interconnection as the Parties
may later agree upon by amending the 1992 Agreement.
1.03. Synchronous Operation. The Parties mutually
agree that, except as provided in Service Schedule D hereof,
their respective systems will be continuously operated in
parallel (except in cases of interruption of such parallel
operation due to mutually agreed upon maintenance or due to
causes beyond the control of either Party, or due to the
necessity of an interruption of parallel operation in order
that the native load directly served by either Party may
continue to receive adequate service from such Party). If
synchronous operation of the systems through a particular
line or lines become interrupted either manually or
automatically because of any of the above-stated reasons, the
Parties shall cooperate so as to remove the cause of such
interruption as soon as practicable and restore such line or
lines to normal operating condition.
1.03.1. Inadvertent Flow. It is recognized that
in interconnected system operation, power and reactive
flow will exist on an interconnection due to scheduled
power flow from either Party to third parties or between
third parties. This inadvertent power flow depends
mainly on the design of the internal systems of the
Parties and the interconnected system, and the schedules
of power flows on the interconnections.
1.03.2. Interruption of Operation. If, in the
sole judgment of either Party, the power or reactive
flow over the interconnection facilities of either Party
is excessive to the extent that it jeopardizes the
reliability of either Party*s service to its customers,
the Parties shall attempt to agree upon adequate
corrective measures to eliminate or control such
excessive power or reactive flow; provided, however,
that in the event such a situation exists, the Party so
burdened shall have the right, with notice when possible
to the other Party, to open and leave open one or all of
the interconnections between the respective systems of
the Parties until corrective action has been taken. The
Parties further agree to study and negotiate the
installation, ownership, and cost of any additional
equipment necessary to effect a long-term solution to
any such excessive loading as herein described in the
event either Party determines that this interconnection
contributes to the excessive loading and requests such
negotiation.
1.04. Maintenance of Equipment. Each of the
Parties shall keep, or shall cause to be kept, the
transmission lines together with all associated equipment and
appurtenances that are located on their respective sides of
the Interconnection Points specified in Section 1.01 hereof,
or agreed upon pursuant to Section 1.02 hereof, in a
suitable condition of repair at all times, each at its own
expense, in order that said transmission lines will operate
in a reliable and satisfactory manner and in order that
reduction in the effective capacity of said transmission
lines will be avoided to the extent practicable.
ARTICLE 2
SERVICES TO BE RENDERED
2.01. Interconnection Services Schedules. It is
the purpose of the Parties to seek and realize, on an
equitable basis, all benefits which may be practicably
effected through coordination in the operation and
development of their respective systems. It is understood by
the Parties that such benefits may be realized by each of
them by carrying out under stated terms and conditions
various interconnection services and transactions that may
from time to time include among others:
(i) The furnishing of emergency service,
(ii) The interchange, sale, and purchase of energy to
effect operating economies,
(iii) The sale and purchase of short term electric
power and energy available on the system of one
Party and needed on the system of the other, and
(iv) The transmission of power and energy on the basis
of simultaneous transfers.
In furtherance of such purpose, the Parties shall create, and
continue the functioning of, an Operating Committee, as
provided in Article 7 hereof.
2.02. Specific Terms and Conditions. Since the
specific services to be rendered in furtherance of such
purpose will vary during the term of the 1992 Agreement, and
the terms and conditions applicable to such services may
require modification from time to time, it is intended that
such specific services and the terms and conditions
applicable thereto will be set forth in Service Schedules
mutually agreed upon between the parties. Such Service
Schedules, unless and until changed, terminated, or
supplemented, shall be those specified in Section 2.03
hereof. If a Service Schedule under the 1992 Agreement is
changed or supplemented, such Service Schedule shall be fully
restated in order to reflect such change or supplement.
2.03. Service Schedules. The respective Service
Schedules designated
Service Schedule A - Emergency Service
Service Schedule B - Interchange Energy
Service Schedule C - Short Term Power and Energy
Service Schedule D - Carmel Southeast Tap Power & Energy
Transfer
have been agreed upon between the Parties, are identified as
Exhibits I, II, III, and IV, respectively, to the 1992
Agreement and are attached hereto and made a part hereof the
same as if incorporated herein. It is contemplated by the
Parties that all additional mutually agreed upon Service
Schedules will be made a part of the 1992 Agreement upon
presentation and acceptance thereof.
2.04. Out-Of-Pocket Costs. The term "Out-of-
Pocket Cost" of energy from generating units on the system of
a Party shall consist of any costs that are directly incurred
by IPL or PSI by reason of its generation of such energy and
which otherwise would not have been incurred by such system
including, but not limited to, fuel, labor, operation,
maintenance, start-up, fuel handling, taxes, regulatory
commission charges, and emission allowances.
"Out-of-Pocket Cost" of energy purchased from a third party
by the supplying Party shall consist of the total amount paid
therefore by the supplying Party which otherwise would not
have been paid by such Party, plus any cost which otherwise
would not have been incurred, including, but not limited to,
regulatory commission charges, emission allowances,
transmission losses and taxes related to such transaction.
Tax expenses will be the expenses that are incurred as taxes
either in connection with the sale or production of such
energy.
2.05. Emission Allowances. The federal Clean Air Act,
as amended, 42 U.S.C. Section 7401 et seq. (hereinafter
referred to as "Clean Air Act"), establishes certain annual
maximum sulfur dioxide ("SO2") levels, stated in terms of
required emission allowances, for flue gases emitted by
electric generating units, including units operated by IPL,
PSI and other electric utilities who may supply electric
energy for transactions under this 1992 Agreement. The
generator of the electric energy supplied and delivered under
this 1992 Agreement is required by the Clean Air Act to have
adequate "allowances" (as defined by Section 402(3) of the
Clean Air Act in conjunction with Section 403(f) of the Clean
Air Act) in order to generate such electric energy. To the
extent that either IPL or PSI are required by the Clean Air
Act to have additional allowances by reason of its generation
of electric energy to be supplied by it under this 1992
Agreement, which allowances would otherwise not have been
required by such supplying Party, then, unless the supplying
Party otherwise agrees in advance in writing, at the
discretion of the supplying Party, the Party receiving such
energy shall be responsible for the cost or the actual
furnishing (without cost to the supplying Party) of adequate
allowances to the supplying Party in order for such Party to
supply such energy under this Agreement. The Parties shall
establish, by mutual agreement, appropriate procedures in
order to carry out the provisions of this Section 2.05,
including a statement of costs before any transactions under
the Service Schedules attached hereto are started. Also,
prior to implementation of every transaction under the
Service Schedules attached hereto, the purchasing Party must
declare whether they will pay in cash or return SO2
Allowances in-kind for any consumption of SO2 Allowances
directly attributed to such transaction, if any.
It shall be the responsibility of the supplying Party to
provide the receiving Party, before the transaction begins,
with a statement of the estimated emission allowance charges
associated with the transaction which the supplying Party is
seeking to add to the rates to be charged under the
applicable Service Schedule. Failure of the supplying Party
to provide a statement of such charges before the transaction
begins shall constitute a waiver of the recovery of any such
costs. In establishing such procedures, the Parties shall
recognize that the determination of the additional allowances
required in order to generate the electric energy to be
supplied hereunder is subject to variables contingent upon
the loading and operating conditions on the system where the
actual generation occurs. The procedures so established by
the Parties shall be in accord with sound engineering
principles of power plant and system operation, and shall
require the furnishing of such additional allowances at such
times and in such amounts as will be equitable to the
supplying Party.
When IPL is the supplier of energy and emission allowances,
the recovery of the applicable costs for the actual
furnishing of adequate allowances in order for IPL to
generate and supply such energy will be implemented in the
following manner:
(1) The Buyer shall compensate IPL for the consumption
of Sulfur Dioxide Emissions Allowances ("SO2 Allowances")
directly attributed to electric energy sales by IPL to Buyer
under the Service Schedules. Such compensation shall, at
Buyer*s option, be made by either supplying IPL with the
number of SO2 Allowances directly attributed to such energy
sales, or by reimbursing IPL for the incremental cost of such
number of SO2 Allowances, rounded to the nearest whole SO2
Allowance.
(1) If Buyer opts to reimburse IPL in cash for SO2
Allowances associated with Buyer*s energy purchases for
the month, the cash amount due at billing will be
determined by multiplying the number of SO2 Allowances
attributed to the sale by the incremental cost of the
SO2 Allowances, as determined in Subsection 2(b) of this
Section 2.05, at the time of the sale.
If Buyer opts to reimburse IPL in SO2 Allowances, Buyer
will record or transfer to IPL*s account, the number of
SO2 Allowances calculated below, at the time cash
settlement for the energy is due. In all cases, Buyer
will transfer to IPL*s account the number of SO2
Allowances due IPL for calendar year no later than
January 15 of the following year. "Transfer to IPL*s
account" shall mean, for purposes of the Amendment, the
transfer by the USEPA of the requisite number of SO2
Allowances to IPL*s Allowance Tracking System account
and the receipt by IPL of the Allowance Transfer
Confirmation.
(2) Determination of SO2 Emission Allowances Due IPL
(a) Number of SO2 Allowances
The number of SO2 Allowances directly attributed to
an energy sale made by IPL shall be determined for
each hour, by determining the contribution from
each of the unit(s) from which the energy sale is
being made for that hour. For each unit, the
emission rate in pounds of SO2 per million Btu will
be determined each month, from fuel sulfur content,
control equipment performance, and continuous
emissions monitoring data. The emission rate and
the unit heat rate will be used to determine the
SO2 Allowances used per megawatt-hour ("MWH"). The
energy from each unit attributable to the sale, and
the SO2 Allowances per MWH for each unit, will be
used to determine the number of SO2 Allowances
attributable to the sale.
(b) Cost of SO2 Allowances
The incremental SO2 Allowance cost used to
determine economic dispatch of IPL*s generating
units in any month, will also be the basis used to
determine compensation for IPL*s energy sales. The
incremental SO2 Allowances cost, in dollars per ton
of SO2, shall be determined each month and will be
based on the Cantor ▇▇▇▇▇▇▇▇▇▇ offer price for SO2
Allowances, or if such is not available, then
another nationally recognized SO2 Allowance trading
market price or market price index, at the
beginning of the month. The SO2 Allowance value
may be changed at any time during the month to
reflect the more current incremental cost, or
market price, for SO2 Allowances. Buyer will be
notified of the new SO2 Allowance value prior to
dispatch of IPL energy to Buyer.
When PSI is the supplier of energy and emission
allowances, the recovery of the applicable costs for the
actual furnishing of adequate allowances in order for
PSI to generate and supply such energy will be
implemented in the following manner:
(1) The current Environmental Protection Agency ("EPA")
auction price to value emission allowances will be used
for energy sales transactions. The dispatch criteria
may be revised from time to time if the emission
allowance purchases on the average are determined to be
significantly different than the EPA auction price.
(2) For each hour in which there is a transaction for energy
services using an Out-of-Pocket Cost rate under this
1992 Agreement, PSI will:
(a) identify the generation sources used to provide the
transaction*s energy by identifying the energy that
would not have been used had the transaction not
been in effect that hour by using the same after-
the-fact incrementing costing model that is used to
calculate the incremental cost of fuel under this
1992 Agreement;
(b) determine, using the following formula, the
quantity of emission allowances related to the
energy transaction: (i) by calculating an
incremental heat rate for the appropriate
generating unit and the corresponding incremental
SO2 emission levels, as determined by the computer
based tools, for the identified units dispatched to
serve the transaction; (ii) applying the following
formula for each such unit; (iii) adding together
the total number of tons of SO2 produced per
million BTU (i.e., British Thermal Unit) of fuel
burned by each such unit for the transaction; and
(iv) letting one (1) emission allowance equal one
(1) ton of SO2 so produced.
# OF UNITS
E [MBTU SALE - MBTU NO SALE] * [SO2] * [100%-SE]
100%
MBTU SALE = Million BTU consumed on unit n with sale.
MBTU NO SALE = Million BTU consumed on unit n without sale.
SO2 = Tons of SO2 produced per million BTU of fuel burned.
SE = Scrubber Efficiency in %.
PSI will perform periodic tests to maintain the
accuracy and validity of such emission rate
information. Because some generating sources may
not be subject to the Clean Air Act during Phase I
or Phase II thereunder, there will be no emission
allowance charges included for the utilization of
such an energy source while it is not subject to
such requirements. One (1) emission allowance
shall be assigned to each ton of SO2 emitted to
serve the transaction. Fractions of emission
allowance tons will be rounded up to the next whole
number when the fraction is equal to or greater
than .5 and rounded down when the fraction is less
than .5.
(3) The purchasing Party of energy shall have the
option of purchasing or providing emission
allowances for each transaction. The purchasing
Party shall notify PSI of its election to purchase
or provide emission allowances prior to the start
of the transaction. The running quantity of
emission allowances charged or furnished will be
shown on the monthly invoices to the purchasing
Party.
(4) When the purchasing Party of energy elects to
purchase the emission allowances from PSI, then the
quantity of emission allowances used will be
included as part of the charges on the monthly
invoices to the purchasing Party.
(5) By January 15th of the year following the calendar
year in which the transaction occurred, the
purchasing Party of energy shall transfer the
appropriate emission allowances to PSI for the
emission allowances used when the allowances are
provided in kind.
(6) PSI has adopted the same incremental cost
calculation to value emission allowances for
dispatch criteria as for billing energy
transactions.
ARTICLE 3
SERVICE CONDITIONS
3.01. Control of System Disturbance. Each Party
shall maintain and operate its system so as to minimize, in
accordance with sound operating practice, the likelihood of
disturbance originating in either Party*s system which might
cause impairment to the service of the system of the other
Party or of any system interconnected with the system of the
other Party.
3.02. Control of Kilovar Exchange. It is the intent
that neither Party shall be obligated to deliver kilovars for
the benefit of the other Party; also that neither Party shall
be obligated to receive kilovars when to do so may introduce
objectionable operating conditions on its system. The
Operating Committee shall be responsible for the
establishment of operating procedures and schedules in
respect of carrying kilovar loads by one Party*s system for
the other Party*s system in order to secure adequate service
and economical use of facilities of both Parties* systems and
in respect of proper charges, if any, for the use of
facilities carrying kilovar loads. In discharging such
duties, the Operating Committee shall recognize that in the
transmission and delivery of power and energy hereunder the
carrying of kilovar loads by either Party, in harmony with
sound engineering principles of transmission operation with
their systems interconnected, is subject to numerous
variables contingent upon loading and operating conditions
existing simultaneously on the systems of both Parties. The
operating procedures and schedules so established by the
Operating Committee shall be in accord with such principles
and shall require each Party to carry kilovar loads at such
times and in such amounts as will be equitable to both
Parties.
3.03. Control of Unscheduled Power Deliveries. The
Parties shall exercise due diligence and foresight in
carrying out all matters related to the providing and
operating of their respective electric power resources so as
to minimize to the extent practicable deviations between
actual and scheduled deliveries of electric power and energy
between their systems. The Parties shall provide and install
on their respective systems such communication and
telemetering facilities as are essential to so minimize such
deviations and, in developing and executing operating
procedures that will enable the Parties to avoid to the
extent practicable deviation from scheduled deliveries, shall
fully cooperate with each other and with third parties whose
systems are either directly or indirectly interconnected with
the systems of the Parties and who of necessity, together
with the Parties, must unify their efforts cooperatively to
achieve effective and efficient interconnected operation.
The Parties recognize, however, that, despite their best
efforts to prevent the same, unscheduled deliveries of
electric energy from one Party to the other may occur. In
such event, electric energy delivered hereunder shall be
settled for by the return of equivalent energy. Equivalent
energy shall be returned at times when the load conditions of
the Party receiving it are equivalent to the load conditions
of such Party at the time the energy for which it is returned
was delivered or, if such Party elects to have equivalent
energy returned under different conditions, it shall be
returned in such amounts, to be agreed upon by the Operating
Committee, as will compensate for the difference in
conditions.
ARTICLE 4
DELIVERY POINTS, MEETING POINTS,
AND METERING
4.01. Delivery Points. All electric energy
delivered under the 1992 Agreement shall be of the character
commonly known as three-phase sixty Hertz energy, and shall
be delivered at the Interconnection Points specified under
Section 1.01 hereof, at a nominal voltage of 138,000 volts at
the Five Points and Centerton Interconnection Points, at the
138KV Petersburg Interconnection Point, and at the Carmel Tap
Point; and at a nominal voltage of 345,000 volts at the
Whitestown and Gwynneville Interconnection Points, and at the
345KV Petersburg Interconnection Point; and at such other
points and voltages as hereafter may be agreed upon by the
parties pursuant to Section 1.02 hereof.
4.02. Billing Based on Scheduled Transaction. As
IPL and PSI systems are interconnected with other systems
forming a network, it is recognized that, because of the
physical and electrical characteristics of the facilities
involved, a part or all of the energy being transferred from
one Party to the other may flow through such other systems
rather than through the point or points of connection between
the systems of the Parties. A part or all of the power being
transferred between other systems in the network may flow
through the point or points of connection between the systems
of the Parties, and as a result be included in the demand and
energy meter readings at the point or points of
interconnection. Therefore, all ▇▇▇▇▇▇▇▇ shall be based on
scheduled transactions or upon methods determined by the
Operating Committee which may result from development of
arrangements with other interconnected systems and which
provide a basis for accounting for the power and energy
transfers actually contracted for between the Parties.
4.03. Metering Points. Electric power and energy
supplied and delivered under the 1992 Agreement shall be
measured by suitable metering equipment which shall be
provided, owned and maintained by PSI or ILP as designated
below at the following metering points:
(i) 138,000 volt metering equipment installed by PSI at
the Five Points Substation; 138,000 volt metering
equipment installed by PSI at the Centerton
Substation; 138,000 and 345,000 volt metering
equipment installed by IPL at the Petersburg
Station; 345,000 volt metering equipment installed
by IPL at its Sunnyside Substation and at PSI*s
Gwynneville and Whitestown Substations; and 12.47kV
metering equipment installed by PSI at its Carmel
Southeast Substation, and
(ii) At such other locations as hereafter may be agreed
upon by the Parties pursuant to Section 1.02
hereof.
4.04. Metering Equipment. Suitable metering
equipment at the metering points as described in Section 4.03
above shall include electric meters, potential and current
transformers, and such other appurtenances as shall be
necessary to give for each direction of flow the following
quantities: (i) an automatic record of the kilowatt-hours
for each clock-hour, and (ii) a continuous integration record
of the kilowatt-hours.
4.05. Measurement of Electric Energy. Measurements
of electric energy for the purpose of effecting settlements
under the 1992 Agreement shall be made by standard types of
electric meters installed and maintained (unless otherwise
provided for in the Agreement) by the owner at the metering
points described in Section 4.03 above. The timing devices
of all meters having such devices shall be maintained in time
synchronism as closely as practicable.
The meters shall be sealed and the seals shall be broken
only upon occasions when the meters are to be tested or
adjusted. for the purpose of checking the records of the
metering equipment installed by one of the Parties as
hereinabove provided, the other Party shall have the right to
install check metering equipment at the aforesaid metering
points. Metering equipment so installed by one Party on the
premises of the other Party, unless otherwise provided for in
the 1992 Agreement, shall be owned and maintained by the
Party installing such equipment. Upon termination of the
1992 Agreement, the Party owning such metering equipment
shall remove it from the premises of the other Party.
Authorized representatives of both Parties shall have access
at all reasonable hours to the premises where the meters are
located and to the records made by the meters.
4.06. Testing and Access to Meters and Records. The
aforesaid metering equipment shall be tested by the owner at
suitable intervals and its accuracy of registration
maintained in accordance with good practice. On request of
either Party, a special test may be made at the expense of
the Party requesting such special test. Representatives of
both Parties shall be afforded the opportunity to be present
at all routine or special tests and upon occasions when any
readings, for purposes of settlements hereunder, are taken
from meters not bearing an automatic record.
4.07. Adjustments Due to Inaccuracies. If at any
test of metering equipment an inaccuracy shall be disclosed
exceeding two percent, the account between the Parties for
service theretofore delivered shall be adjusted to correct
for the inaccuracy disclosed over the shorter of the
following two periods: (i) for the thirty (30) day period
immediately preceding the day of the test, or (ii) for the
period that such inaccuracy may be determined to have
existed. Should the metering equipment described in Section
4.04 above at any time fail to register, the electric power
and energy delivered shall be determined from the check
meters, if installed, or otherwise shall be determined from
the best available data.
ARTICLE 5
RECORDS AND STATEMENTS
5.01. Records. In addition to records of the
metering provided for in Article 4 hereof, the Parties shall
keep in duplicate such other records as may be needed to
afford a clear history of the various deliveries of electric
energy made by one Party to the other and of the clock-hour
integrated demands in kilowatt-hours delivered by one Party
to the other. In maintaining such records, the Parties shall
effect such segregations and allocations of demands and
electric energy delivered into classes representing the
various services and conditions as may be needed in
connection with settlements under the 1992 Agreement. The
originals of all such records shall be retained by the Party
keeping the records and the duplicates shall be delivered
monthly to the other Party, except that the Parties may agree
upon a different time interval for such delivery.
5.02. Statements. As promptly as practicable after
the end of each calendar month, the Parties shall prepare a
statement setting forth the electric power and energy
transactions between the Parties during such month in such
detail and with such segregations as may be needed for
operating records or for settlements under the provisions of
the 1992 Agreement.
ARTICLE 6
▇▇▇▇▇▇▇▇ AND PAYMENTS
6.01. Billing Period. Unless otherwise agreed upon
by the Parties, the calendar month shall be the standard
billing period for all settlements under the 1992 Agreement.
6.02. Billing Scheduled Transactions. All billing
shall be based on scheduled transactions unless otherwise
determined as provided in Section 4.02 hereof.
6.03. Billing Payments. All bills for amounts owed
by one Party to the other Party shall be due on the first
business day following the twentieth (20th) day after the end
of the calendar month or period service was rendered, or on
the fifteenth (15th) business day following receipt of a
▇▇▇▇, whichever is later. Payments shall be made by
electronic transfer or by such other mutually agreeable
method as shall cause such payment to be available for the
account of the payee on or before the due date. Interest on
unpaid amounts, both principal and interest, shall accrue
daily at the then current prime interest rate per annum of
The Chase Manhattan Bank, N.A., New York, New York, plus two
percent (2%) per annum, or the maximum rate permitted by law,
whichever is less, from the date due until the date upon
which payment is made.
6.04. Estimated Billing Factors. In order that
bills may be rendered promptly after the end of the each
month, it may be necessary, from time to time, to estimate
certain factors involved in calculating the monthly billing.
Adjustments for errors in such estimates shall be included in
the ▇▇▇▇ for the month following the time when information
becomes available to make such corrections or adjustments in
the billing for the preceding month or months.
6.05. Billing Disputes. If a Party disputes the
correctness of a ▇▇▇▇, such Party will, nevertheless, pay the
undisputed portion of such ▇▇▇▇, plus a minimum of one-half
(1/2) of the disputed amount, and shall submit to the other
Party a written statement detailing the items disputed. If
the Parties are unable to agree upon the disputed items, such
items shall be submitted to the Operating Committee for
further action consistent with the 1992 Agreement.
ARTICLE 7
OPERATING COMMITTEE
7.01. Operating Committee Organization and Duties.
To coordinate the operation of their respective generation,
transmission, and substation facilities in order that the
benefits of the 1992 Agreement may be realized by the Parties
to the fullest practicable extent, the Parties shall
establish a committee of authorized representatives to be
known as the Operating Committee. Each of the Parties shall
designate in writing delivered to the other Party, the person
who is to act as its authorized representative (the "OC
Representative") on said committee (and the person or persons
who may serve as Alternate whenever the OC Representative is
unable to act). The OC Representative and Alternate or
Alternates shall each be persons familiar with the
generation, transmission, and substation facilitates of the
system of the Party he represents, and each shall be fully
authorized (i) to cooperate with the other OC Representative
(or Alternates) and (ii) as the need arises and subject to
the declared intentions of the Parties as herein set forth
and to the terms hereof and the terms of any other agreements
then in effect between the Parties, to determine and agree
from time to time upon the following:
(i) All matters pertaining to the coordination of
maintenance of the generation and transmission
facilities of the Parties.
(ii) All matters pertaining to the control of time,
frequency, energy flow, kilovar exchange, power
factor, voltage, and other similar matters bearing
upon the satisfactory synchronous operation of the
systems of the Parties.
(iii) Such other matters not specifically provided
for herein upon which cooperation, coordination and
agreement as to quantity, time, method, terms and
conditions are necessary, in order that the
operation of the respective systems of the Parties
may be coordinated to the end that the potential
benefits anticipated by the Parties will be
realized to the fullest extent practicable.
7.02. Operating Committee Access. For the purpose
of inspection and reading of meters, checking of records, and
all other pertinent matters, the OC Representative and their
Alternates shall have the right of entry at any reasonable
time to all property of the Parties used in connection with
the performance of the 1992 Agreement.
7.03. Unanimous Action. All actions taken by said
Operating Committee must be by unanimous vote or consent of
all OC Representatives (including Alternates acting during OC
Representatives* absence).
7.04. Expenses. The expenses for establishing and
maintaining the Operating Committee shall be the
responsibility of each individual Party as regards to its
respective personnel. Any expenses jointly incurred by said
Operating Committee in carrying out its duties, other than
for the Parties* personnel, shall be shared equally by the
Parties.
7.05. Authority to Amend or Supplement. The
Operating Committee may recommend changes to the 1992
Agreement, but said Operating Committee shall not have
authority to amend or supplement the 1992 Agreement.
ARTICLE 8
CONTINUITY AND SUSPENSION OF SERVICE
RELATIVE RESPONSIBILITIES AND
LIABILITY LIMITS
8.01. Continuity and Suspension of Service. Each
Party shall exercise reasonable care and foresight to
maintain continuity of service as provided in the 1992
Agreement. In no event shall one Party be liable to the
other Party or its customers for loss or damage arising from
failure to provide or for the interruption or suspension of
any service provided for herein. Each Party reserves the
right to suspend service without liability at such times and
for such periods and in such manner as it deems advisable,
including, without limitation, suspensions for the purpose of
making necessary adjustments to, changes in, or repairs on,
its facilities and to suspend service in cases where, in its
sole opinion, the continuance of service to the other Party
would endanger persons or property. Both Parties shall use
their best efforts to provide each other with reasonable
notice in the event of suspension of service.
8.02. Relative Responsibilities. Each Party assumes
all responsibility for receipt and delivery of electricity on
its system to and from the Points of Interconnection
specified in Section 1.01 hereof or agreed upon pursuant to
Section 1.02 hereof. Neither Party assumes any
responsibility with respect to the construction,
installation, maintenance or operation of the system of the
other Party or of the systems of third parties, in whole or
in part. In no event shall one Party be liable to the other
Party for damage or injury to any person or property,
whatsoever, arising, accruing or resulting from, in any
manner, the receiving, transmission, control, use,
application or distribution of said electric power and
energy. Each Party shall use reasonable diligence to
maintain its facilities in proper and serviceable condition,
and shall take reasonable steps and precautions for
maintaining the services agreed to be provided and received
under the 1992 Agreement. Each Party shall be responsible
for its own compliance with all applicable environmental
regulations and shall bear all costs arising from its failure
to comply with such environmental regulations.
8.03. Limitation of Liability. In no event shall
one Party be liable to the other Party for any indirect,
special, incidental or consequential damages with respect to
any claim arising out of the 1992 Agreement.
ARTICLE 9
TERM OF AGREEMENT
9.01. The term of the 1992 Agreement and of the
annexed Service Schedules shall begin as of May 1, 1992 and
(except for Service Schedule D) shall continue through April
30, 2022 (the "Initial Term"); thereafter, the Agreement and
Service Schedules (except Service Schedule D) shall continue
for successive terms of three (3) years each unless and until
terminated by either Party by giving notice to the other
Party of its intention to terminate the 1992 Agreement at
least two (2) years prior to the end of the Initial Term or
any successive term; provided, that the 1992 Agreement shall
not be deemed to have terminated until all prior commitments
for sales or purchases of power and energy hereunder shall
have been fulfilled and all payments shall have been made.
The term of Service Schedule D shall be as provided therein.
Any notice of termination hereunder shall be given to the
President or Chief Operations Officer of a Party with a copy
to the OC Representative of such Party.
ARTICLE 10
WAIVERS
10.01. Any waiver at any time by either party of
their rights with respect to a default under the 1992
Agreement, or with respect to any other matter arising in
connection with the 1992 Agreement shall not be deemed a
waiver with respect to any subsequent default or matter. Any
delay, short of the statutory period of limitation, in
asserting or enforcing any right under the 1992 Agreement
shall not be deemed a waiver of such right.
ARTICLE 11
TAXES
11.01. If at any time during the term hereof there
should be levied or assessed against either Party any direct
tax by any taxing authority on the capacity or energy (or
both) generated, purchased, sold, transmitted, interchanged
or exchanged by it, which tax is in addition to or different
from the forms of such direct tax as are being levied or
assessed as of the date hereof and such direct tax results in
increasing the cost of either or both the Parties in carrying
out the provisions of the 1992 Agreement, then such increase
shall be reflected in the charges for capacity or energy (or
both) furnished by one Party to the other hereunder as is
necessary in order to make adequate and equitable allowances
for such tax.
ARTICLE 12
NOTICES
12.01. Notices Relating to Provisions of the 1992
Agreement. Except as herein otherwise provided, any notice
which may be given to or made upon either Party by the other
Party, under any of the provisions of the 1992 Agreement,
shall be in writing unless it is otherwise specifically
provided herein, and shall be treated as duly delivered when
the same is either (a) personally delivered to the President
or Chief Operations Officer of the other Party or (b)
deposited in the United States mail, postage prepaid and
properly addressed to the President or Chief Operations
Officer of the other Party; provided, however, that either
Party may alter its recipient for notice hereunder by written
notice to the other Party in accordance with the provisions
of this Section 12.01.
12.02. Notices of An Operating Nature. Any notice,
request or demand pertaining to matters of an operating
nature may be served in person or by United States mail,
messenger, telephone, or telegraph, facsimile transmission or
orally, as circumstances dictate, from the OC Representative
of one Party to the OC Representative of the other Party;
provided, that should the same not be written, confirmation
thereof shall be made in writing as soon as practicable
thereafter, upon request of the Party being served.
ARTICLE 13
REGULATORY AUTHORITIES
13.01. Regulatory Authority. The 1992 Agreement is
made subject to the authority of the Federal Energy
Regulatory Commission or any other governmental regulatory
agency having jurisdiction in the premises and, if any of the
terms and conditions hereof are altered or made impossible of
performance by order, rule, or regulation of any such
regulatory agency, and the Parties hereto are unable to agree
upon a modification of such terms and conditions that will
satisfy such order, rule, or regulation, then neither Party
shall be liable to the other for failure thereafter to comply
with such terms and conditions; provided, that if either
Party deems that the failure of such performance results in a
substantial breach of the 1992 Agreement, then the 1992
Agreement may be terminated forthwith upon thirty (30) days*
advance written notice.
13.02. Amendments. The 1992 Agreement and the
annexed Service Schedules may be amended by mutual agreement
of the Parties, which amendment shall be in writing and shall
become effective in accordance with Section 13.01 hereof.
The rates and charges set forth in the annexed Service
Schedules are subject to amendment and change, and each party
reserves the right from time to time to seek unilaterally,
from any regulatory agency having jurisdiction, amendments or
changes in its rates and charges set forth therein in
accordance with the applicable law. Nothing contained in the
1992 Agreement, any annexed Service Schedule or any
supplements thereto shall be construed as affecting in any
way the right of either Party unilaterally to make
application to the Federal Energy Regulatory Commission (or
any successor regulatory agency having jurisdiction) for a
change in rates under Section 205 of the Federal Power Act
and pursuant to the Commission*s Rules and Regulation
promulgated thereunder (or under comparable statutes and
regulations of a successor regulatory agency having
jurisdiction).
ARTICLE 14
MISCELLANEOUS
14.01. No Partnerships; Tax Matters. Notwithstanding
any provision of the 1992 Agreement to the contrary, the
Parties do not intend to create hereby any joint venture,
partnership, association taxable as a corporation, or other
entity for the conduct of any business for profit, and any
construction of the 1992 Agreement to the contrary which has
an adverse tax effect on either Party shall render the 1992
Agreement null and void from its inception.
14.02. Computation of Time. In computing any period
of time prescribed or allowed by the 1992 Agreement, the day
of the act, event, or default from which the designated
period of time begins to run shall be excluded but the last
day of such period shall be included, unless it is a
Saturday, Sunday, or legal holiday, in which event the period
shall run until the end of the next business day which is not
a Saturday, Sunday, or legal holiday.
14.03. Section Headings Not to Affect Meaning. The
descriptive headings of the Articles, Sections, Subsections
and paragraphs of the 1992 Agreement have been inserted for
convenience only and shall not modify or restrict any of the
terms and provisions thereof.
ARTICLE 15
ASSIGNMENT
15.01. The 1992 Agreement shall inure to the benefit
of, and be binding upon, the respective successors and
assigns of the Parties, but the assignment thereof by a Party
shall not relieve such Party, without the written consent of
the other Party, of any obligation to supply, or to take and
pay for, as the case may be, the services hereunder.
ARTICLE 16
ENTIRE AGREEMENT CONTAINED HEREIN
16.01. The 1992 Agreement contains the entire
agreement between the Parties in respect of the subject
matter hereof, and there are no other understanding or
agreements between the Parties in respect thereof; provided,
however, that nothing contained in the 1992 Agreement shall
be deemed to affect in any manner whatsoever any rights or
claims either Party may have against the other Party pursuant
to any other agreement in effect before the effective date of
the 1992 Agreement with respect to any matter, including any
right or claim to payments after the effective date of the
1992 Agreement pursuant to other preexisting agreements.
ARTICLE 17
1962 AGREEMENT SUPERSEDED
17.01. The 1992 Agreement constitutes an amendment to
and complete restatement of the 1962 Agreement and, as such,
supersedes the 1962 Agreement from and after the date the
1992 Agreement becomes effective.
ARTICLE 18
AGENCY OF CINERGY SERVICES, INC.
18.01. CINergy Services joins in the execution of
this Agreement for the sole purpose of serving and acting as
agent for PSI.
IN WITNESS WHEREOF the Parties have caused the 1992 Agreement
to be executed by their respectable duly authorized officers
and their respective corporate seal to be hereunder affixed
as of the date first above mentioned.
INDIANAPOLIS POWER & LIGHT
(IPL)
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇
Senior Vice President
Finance and
Information Services
Attest:
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Senior Vice President
Secretary and
General Counsel
CINERGY SERVICES, INC.
(CINergy Services)
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇
Group Vice President
PSI ENERGY, INC.
(PSI)
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇
President
EXHIBIT I
(First Revision)
SERVICE SCHEDULE A
EMERGENCY SERVICE
SECTION 1 - DURATION
1.1 This Service Schedule A, being a part of and under the
Interconnection Agreement (referred to herein as the "1992
Agreement"), dated as of May 1, 1992, among Indianapolis
Power & Light Company (hereinafter called "IPL") and PSI
Energy, Inc., formerly named Public Service Company of
Indiana, Inc. (hereinafter called "PSI") and CINergy
Services, Inc. (hereinafter called "CINergy Services"), shall
become effective as of the effective date of the Third
Amendment, dated June 30, 1995, to the 1992 Agreement and
shall continue in effect throughout the duration of the 1992
Agreement. IPL, PSI and CINergy Services are sometimes
hereinafter referred to individually as "Party" or
collectively as "Parties" where appropriate.
SECTION 2 - SERVICES TO BE RENDERED
2.1 Conditional Service. Subject to the provisions of
Subsection 2.2 of this Section 2, in the event of a breakdown
or other emergency in or on the system of any Party involving
either sources of power or transmission facilities, or both,
impairing or jeopardizing the ability of the Party suffering
the emergency to meet the loads of its system, another Party
shall deliver to such Party electric energy that it is
requested to deliver; provided, however, that a Party shall
not be obligated to deliver such energy which, in its sole
judgment, it cannot deliver without interposing a hazard to
or economic burden upon its operations or without impairing
or jeopardizing the other load requirements of its system and
provided further, that a Party shall be obligated to deliver
electric energy to another Party for a period in excess of
forty-eight (48) consecutive hours during any single
emergency.
2.2 Non-performance. The Parties recognize that the
delivery of electric energy as provided in Subsection 2.1 of
this Section 2 is subject to two conditions which may
preclude the delivery of such energy as so provided: (a) the
Party requested to deliver electric energy may be suffering
an emergency in or on its own system as described in said
Subsection 2.1, or (b) the system of a Party may be
delivering electric energy, under a mutual emergency
interchange agreement, to the system of another
interconnected company which is suffering any emergency in or
on its system. Under conditions as cited under (a) above, a
Party shall not be considered to be in default hereunder if
it is unable to comply with the provisions of said Subsection
2.1. Under conditions as cited under (b) above, a Party
shall not be considered to be in default hereunder if it is
unable to comply with the provisions of said Subsection 2.1;
provided, however, that such Party shall make every effort
consistent with the terms of its contract with said other
interconnected company to make the electric energy as
provided in Subsection 2.1 available to another Party hereto
as soon as possible.
2.3 Reserve Generating Capacity Review. If at any time the
record over a reasonable prior period shows clearly that one
of the Parties has failed to deliver energy in accordance
with and subject to the provisions of Subsection 2.1 and
Subsection 2.2 of this Section 2, a Party, by written notice
given to another Party, may call for a joint study by the
Parties of the reserve generating capacity in and provided
for their respective systems and of their respective system
transmission facilities affecting the supply and delivery of
power and energy under the 1992 Agreement. It shall be the
purpose of such study to determine the adequacy or inadequacy
of reserve generating capacity and transmission facilities
being provided to meet the requirements of the Parties
respective systems, reflecting obligations under the 1992
Agreement, and, if inadequate, the extent of the burden that
a Party may be placing upon another Party. If it should be
found that a Party is placing an unreasonable burden upon
another Party, the Party causing such burden shall take such
measures as are necessary to remove the burden from another
Party, or the Parties shall enter into such arrangements as
shall provide for equitable compensation to the Party being
burdened.
SECTION 3 - COMPENSATION
3.1 When IPL is the Supplying Party:
3.11 Emergency Energy delivered that is generated by
IPL shall be settled for, at the option of IPL, either by the
return of equivalent energy at a mutually acceptable time
upon request of IPL or by payment of the greater of (a) 110%
of the Out-Of-Pocket Cost (such cost being as of the delivery
point or points, as referred to in Section 4.01 of the 1992
Agreement, taking into account electrical losses incurred
from the source or sources of such energy to the delivery
point or points) of supplying such energy, or (b) $0.10 per
kilowatt-hour.
3.12 Emergency Energy delivered that is purchased by
IPL from a third party shall be settled for by payment of an
energy charge of 100% of the Out-Of-Pocket Cost paid therefor
by IPL, plus an amount to be agreed upon by the Parties at
the time of the transactions of up to 4.6 ▇▇▇▇▇ per kilowatt-
hour (consisting of up to 3.6 ▇▇▇▇▇ per kilowatt-hour for
bulk transmission charge plus 1 mill per kilowatt-hour for
difficult to quantify energy-related costs), plus any
transmission losses resulting on IPL's system on account of
the transaction, and plus any taxes incurred by IPL on
account of the transaction.
3.2 When PSI is the Supplying Party:
3.21 Emergency Energy delivered that is generated by
PSI shall be settled for by payment of the greater of
(a) 110% of the Out-Of-Pocket Cost (such cost being as
of the interconnection point or points, as referred to
in Section 4.01 or the 1992 Agreement, taking into
account electrical losses incurred from the source or
sources of such energy to the interconnection point or
points) of supplying such energy. Non-firm transmission
service per the provisions of the CINergy Services,
Inc., FERC Electric Tariff, Original Volume ▇▇. ▇, ▇▇▇-
▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇ Transmission Service Standard Tariff
- NFT (or any successor transmission tariff of similar
service) must be obtained, or (b) $100 per megawatt-
hour.
3.22 Emergency Energy delivered that is purchased by
PSI from a third party shall be settled for by payment
of the greater of (a) of an energy charge of 100% of the
Out-Of-Pocket Cost paid therefor by PSI plus $1.00 per
megawatt-hour (for difficult to quantify energy-related
costs), plus any transmission losses resulting on the
system of the CINergy Operating Companies on account of
the transaction. Non-firm transmission service per the
provisions of the CINergy Services, Inc., FERC Electric
Tariff, Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇
Transmission Service Standard Tariff - NFT (or any
successor transmission tariff of similar service) must
be obtained, and plus any regulatory commission charges
and taxes incurred by PSI on account of the transaction,
or (b) $100 per megawatt-hour.
3.3 If the option of returning electric energy under
Subsection 3.11 is exercised, then it shall be returned at
times when the load conditions of the Party receiving it are
equivalent to the load conditions of such Party at the time
the energy for which it is returned was delivered or, if such
Party elects to have equivalent energy returned under
different conditions, it shall be returned in such amounts,
to be agreed upon by the Operating Committee under the
Agreement, as will compensate the Party for the difference in
conditions.
EXHIBIT II
(First Revision)
SERVICE SCHEDULE B
INTERCHANGE ENERGY
SECTION 1 - DURATION
1.1 This Service Schedule B, being a part of and under the
Interconnection Agreement (referred to herein as the "1992
Agreement"), dated as of May 1, 1992, among Indianapolis
Power & Light Company (hereinafter called "IPL") and PSI
Energy, Inc., formerly named Public Service Company of
Indiana, Inc. (hereinafter called "PSI") and CINergy
Services, Inc. (hereinafter called "CINergy Services"), shall
become effective as of the effective date of the Third
Amendment, dated June 30, 1995 to the 1992 Agreement and
shall continue in effect throughout the duration of the 1992
Agreement. IPL, PSI and CINergy Services are sometimes
hereinafter referred to individually as "Party" or
collectively as "Parties" where appropriate.
SECTION 2 - SERVICES TO BE RENDERED
Economy Energy
2.1 It is recognized that from time to time that any of the
Parties may have electric energy (herein called "Economy
Energy") available from surplus capacity either on its own
system or from sources outside its own system, or both, and
that Economy Energy could be supplied to another Party at a
cost that would result in operating savings to such another
Party. Such operating savings would result from the
displacement of electric energy that otherwise would be
supplied from capacity either on such other Party's system or
from sources outside its own system, or both. To promote the
economy of electric power supply and to achieve efficient
utilization of production capacity, any Party, whenever it in
its sole judgment determines Economy Energy is available,
may, but shall not be obligated to, offer Economy Energy to
another Party. Promptly upon receipt of any such offer said
Party shall notify the offering Party of the extent to which
it desires to use such Economy Energy, and schedules
providing the periods and extent of use shall be mutually
agreed upon by the Parties. Such energy is non-firm and may
be withdrawn by the supplying Party with a ten (10) minute
notification. A transaction made by PSI and CINergy Services
under this Service Schedule B shall not extend beyond twelve
(12) months.
Non-Displacement Energy
2.2 It is further recognized that from time to time
occasions will arise when the effecting of transactions, as
provided in Subsection 2.1 of this Section 2, will be
impracticable, but at the same time one of the Parties may
have electric energy (herein called "Non-Displacement
Energy") which it is willing to make available from surplus
capacity either on its own system or from sources outside its
own system, or both, that can be utilized advantageously for
short intervals by another Party. It shall be the
responsibility of the Party desiring the receipt of Non-
Displacement Energy to initiate the receipt and delivery of
such energy. Any Party desiring such receipt of energy shall
inform another Party of the extent to which it desires to use
Non-Displacement Energy, and whenever in its sole judgment
such another Party determines that it has Non-Displacement
Energy available, schedules providing the periods and extent
of use shall be mutually agreed upon by the Parties. Any
Party shall not be obligated to make any Non-Displacement
Energy available to another Party.
2.3 PSI may reduce or discontinue the supply of Hourly Non-
Displacement Energy at any time. To the extent possible,
however, PSI shall advise IPL of its intention to reduce
materially or discontinue the supply of Hourly Non-
Displacement Energy.
2.4 PSI shall supply Daily and Weekly Non-Displacement
Energy for three (3) hours after they have notified IPL of
its intention to discontinue such supply of energy; however,
PSI shall be under no obligation to continue the supply of
said energy for more than three (3) hours after said
notification.
2.5 A transaction made by PSI under Subsection 2.2 above
shall not extend beyond twelve (12) months.
SECTION 3 - COMPENSATION
Economy Energy
3.1 The charge for Economy Energy purchased by a Party from
another Party shall be based on the principle that the Party
purchasing it shall pay the Out-Of-Pocket Cost (including all
operating, maintenance, tax, regulatory commission charges,
transmission losses and other expenses incurred that would
not have been incurred if the energy had not been supplied)
being at the interconnection points (as defined in Article 4
of the 1992 Agreement), of the Party supplying such energy
and that the resulting savings to the receiving Party shall
be equally shared by the supplying and receiving Parties.
Prior to any transaction involving the delivery and receipt
of Economy Energy, authorized representatives of the Parties
shall determine and agree upon the compensation applicable to
such transaction. Compensation so agreed upon shall not be
subject to later review or adjustment. PSI shall dedicate an
amount at the time of the transactions for non-firm
transmission service per the provisions of the CINergy
Services, Inc., FERC Electric Tariff, Original Volume ▇▇. ▇,
▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇ Transmission Service Standard Tariff
- NFT (or any successor transmission tariff of similar
service) from its portion of the resulting savings.
3.2 When Economy Energy is obtained from or delivered to
other systems interconnected with the Parties, but not
signatories to the 1992 Agreement, payments shall be based on
the Out-Of-Pocket Cost of the supplying Party or system
providing the energy and an allocation of the gross savings
which are defined as the difference between (1) what such Out-
Of-Pocket Costs of the receiving Party or system would have
been to generate such energy, and (2) such Out-Of-Pocket
Costs of the supplying Party or system providing the energy.
Such allocation shall be made as provided in Subsections 3.21
and 3.22 hereinbelow:
3.21 The transmitting Party shall be paid (a) its costs
of purchasing the energy supplied, plus (b) its
costs of additional transmission losses plus (c)
the following:
(1) When IPL is such transmitting Party: Fifteen
percent (15%) of the gross savings remaining
after deducting all such payments for
transmission losses.
(2) When PSI is the transmitting Party, they shall
receive the greater of (a) 15% (such charge
pertains to the reservation of transmission)
of the gross savings remaining after deducting
all such payments for transmission losses or
(b) the sum of a demand charge rate per
megawatt reserved per hour at the time such
Economy Energy is reserved for non-firm
transmission service per the provisions of the
CINergy Services, Inc., FERC Electric Tariff,
Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇
Transmission Service Standard Tariff - NFT (or
any successor transmission tariff of similar
service), plus $1.00 per megawatt-hour (for
difficult to quantify energy-related costs),
plus any transmission losses resulting on the
system of the CINergy Operating Companies on
account of the transaction and plus any
regulatory commission charges and taxes
incurred by PSI on account of the transaction.
3.22 The supplying Party or system shall be paid its Out-
Of-Pocket Cost of providing the energy, plus one-
half of the gross savings remaining after deducting
all (b) and (c) payments made under Subsection
3.21. The receiving Party or system shall be
entitled to the other one-half of the gross savings
remaining after deducting all (b) and (c) payments
made under Subsection 3.21.
Non-Displacement Energy
3.3 Non-Displacement Energy delivered hereunder shall be
settled for either by the return of equivalent energy (only
in the case where IPL is the supplying Party) or, at the
option of the Party that supplied such energy, by payment of
an energy charge of up to 110% of the Out-Of-Pocket Cost
(such cost being as of the delivery point or points, as
provided in Section 4.01 of Article 4 of the 1992 Agreement,
taking into account electrical losses incurred from the
source or sources of such energy to said delivery point or
points) to the supplying Party generating such energy plus
(the applicable demand charge rates per this Subsection are
limited by Subsections 3.7 and 3.8):
3.31 When IPL is the supplying Party:
3.31.1 IPL, at its option, may impose a demand
charge of up to 48.6 ▇▇▇▇▇ per kilowatt reserved
per hour, but the total demand charge in any one
day shall be no more than the product of $0.778
times the highest amount in kilowatts reserved in
any hour during the day. Or,
3.31.2 IPL, at its option, may choose to supply
such energy without imposing a demand charge in
which case no additional payment is included.
However, if this option is chosen, the cost of such
energy will be calculated as 110% of the actual Out-
Of-Pocket Cost (such cost being as of the delivery
point or points, as provided in Section 4.01 of
Article 4 of the 1992 Agreement, taking into
account electrical losses incurred from the source
or sources of such energy to said delivery point or
points) to the supplying Party generating such
energy.
3.32 When PSI is the supplying Party by payment of the
following:
(1) For energy generated, the agreed upon demand charge
rate of up to $50 per megawatt-hour (such charge
pertains to the production component only), the
total demand charge in any one day shall be no more
than the product of $797 and the greatest amount of
megawatts reserved in any hour during said day and
the total charge in any one week shall be no more
than the product of $4,781 and the greatest number
of megawatts reserved in any hour during said week.
Non-firm transmission service per the provisions of
the CINergy Services, Inc., FERC Electric Tariff,
Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇
Transmission Service Standard Tariff - NFT (or any
successor transmission tariff of similar service)
must be obtained;
(2) For daily energy which is purchased by PSI from a
third party for economic reasons to meet system
needs but in subsequent system resources accounting
calculations is determined to have been used to
supply a Daily Non-Displacement Energy transaction
and for which PSI stands by to supply from its own
resources: (a) the amount paid by PSI to the third
party for such energy, plus (b) the cost of
transmission losses, regulatory commission charges
and taxes incurred which would not otherwise have
been incurred, plus (c) $1.00 per megawatt-hour for
difficult-to-quantify energy related costs, and,
plus (d) up to $50 per megawatt-hour (such charge
pertains to the production component only), the
total charge in any one day shall be no more than
the product of $797 and the greatest number of
megawatts reserved in any hour during said day and
the total charge in any one week shall be no more
than the product of $4,781 and the greatest number
of megawatts reserved in any hour during said week.
Non-firm transmission service per the provisions of
the CINergy Services, Inc., FERC Electric Tariff,
Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇
Transmission Service Standard Tariff - NFT (or any
successor transmission tariff of similar service)
must be obtained.
3.33 If equivalent energy is returned to IPL, it shall
be returned at times when the load conditions of
the Party receiving it are equivalent to the load
conditions of such Party at the time the energy for
which it is returned was delivered or, if such
Party elects to have equivalent energy returned
under different conditions, it shall be returned in
such amounts, to be agreed upon by the Operating
Committee, as will compensate for the difference in
conditions.
3.4 Non-Displacement Energy delivered under Subsection 2.2
above that is purchased by the supplying Party from another
interconnected system which is not a signatory to the 1992
Agreement ("Third Party") at the request of the receiving
Party shall be settled for as follows:
3.41 When IPL is the supplying Party, by a payment of 100
percent of the amount paid to such Third Party, plus a
demand charge in an amount to be agreed upon by the
Parties at the time of the reservation of up to 3.6
▇▇▇▇▇ per kilowatt reserved per hour, but the total
demand charge in any one day shall be no more than the
product of $0.058 times the highest amount in kilowatts
reserved in any hour during the day, plus 1 mill per
kilowatt-hour (for difficult to quantify energy-related
costs), plus the cost of any quantifiable transmission
losses, taxes, and other expenses incurred that would
not have been incurred if such transaction had not been
made.
3.42 When PSI is the supplying Party: by (a) non-firm
transmission service per the provisions of the CINergy
Services, Inc., FERC Electric Tariff, Original Volume
▇▇. ▇, ▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇ Transmission Service
Standard Tariff - NFT (or any successor transmission
tariff of similar service) must be obtained and (b) an
energy charge of 100% of the Out-of-Pocket Cost paid
therefor by PSI, plus $1.00 per megawatt-hour (for
difficult to quantify energy-related costs), plus any
transmission losses resulting on the system of the
CINergy Operating Companies on account of the
transaction, and plus any regulatory commission charges
and taxes incurred by PSI on account of the transaction.
3.5 Notwithstanding the rates stated in Subsection 3.3
above, when IPL is the supplying Party, if the "demand
charge" option of Section 3.31.1 is chosen, the sum of the
demand and energy charges for each specific reservation made
pursuant to Section 2.2 of this Service Schedule B which
includes a demand charge shall not:
(1) exceed the total of:
(i) The product of the number of kilowatts
reserved for such reservation times the
maximum hourly demand charge specified above
in Subsection 3.3; and
(ii) The product of the number of kilowatt-hours
sup-plied for such reservation times 110% of
the average cost per kilowatt-hour of energy
generated by IPL's Petersburg Unit No. 4 for
the last preceding month during which it was
run; or
(2) be less than 100% of the total Out-Of-Pocket Cost
of supplying the Non-Displacement Energy for such
reservation.
3.6 Notwithstanding the rates stated in Subsection 3.3
above, when PSI and CINergy Services are the supplying Party,
the sum of the demand and energy charges for each specific
reservation made pursuant to Section 2.2 of this Service
Schedule B shall not:
(1) exceed the total of:
(i) The product of the number of megawatts
reserved for such reservation times the
maximum hourly demand charge specified above
in Subsection 3.3; and plus
(ii) The product of the number of megawatt-hours
supplied for such reservation times 110% of
the average cost per megawatt-hour of energy
generated by the CINergy Operating Companies*
▇▇▇▇▇▇ Unit No. 1 and ▇▇▇▇▇▇ Unit No. 5 for
the preceding month; nor
(2) be less than 100% of the total Out-Of-Pocket Cost
of supplying the Non-Displacement Energy for such
reservation.
3.7 The aggregate instant total capacity of all IPL sales
under this and other Service Schedules which are a part of
this and other IPL Agreements, for which the rates charged
have been supported on the basis that total revenues will not
exceed the costs of Petersburg Unit No. 4, is limited to 515
MW.
3.8 The total power of all sales by the CINergy Operating
Companies and CINergy Services under this and other
agreements of the CINergy Operating Companies and CINergy
Services, for which the agreed upon demand charge is
determined based on ▇▇▇▇▇▇ ▇▇▇▇ ▇▇. ▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇. ▇,
is limited to 925 MWs (CINergy Operating Companies* ▇▇▇▇▇▇
Unit No. 1 Net Demonstrated Capability of 612 MWs and ▇▇▇▇▇▇
Unit No. 5 Net Demonstrated Capability of 313 MWs) on an
hourly basis. For sales in excess of the capacity limitation
of 925 MWs noted above, the rate shall consist of an energy
charge of up to 110% of Out-of-Pocket Cost and a demand
charge of up to $ 13 per megawatt per hour (such charge
pertains to the production component only), the total charge
in any one day shall be no more than the product of $209 and
the greatest number of megawatts reserved in any hour during
said day and the total charge in any one week shall be no
more than the product of $1,252 and the greatest number of
megawatts reserved in any hour during said week. Non-firm
transmission service per the provisions of the CINergy
Services, Inc., FERC Electric Tariff, Original Volume ▇▇. ▇,
▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇ Transmission Service Standard Tariff
- NFT (or any successor transmission tariff of similar
service) must be obtained; but in no event shall the total
revenue (energy charge and demand charge combined) be less
than 100% of the Out-of-Pocket Costs for supplying the Non-
Displacement Energy for such reservation. Notwithstanding
all previous Subsections, when power is sold under both this
Subsection and Subsection 3.3 in any month, the total demand
charge will be the applicable weighted average demand charges
in this Subsection and Subsection 3.3. Such weighting will
be developed by adding the number of hours that power was
provided under this Subsection times the applicable demand
charge under this Subsection and the number of hours that
power was provided under Subsection 3.3 times the applicable
demand charge in Subsection 3.3, with the sum being divided
by the applicable number of hours of the transaction (month,
week, day or hours).
EXHIBIT III
(First Revision)
SERVICE SCHEDULE C
SHORT TERM POWER AND ENERGY
SECTION 1 - DURATION
1.1 This Service Schedule C, being a part of and under the
Interconnection Agreement (referred to herein as the "1992
Agreement"), dated as of May 1, 1992, among Indianapolis
Power & Light Company (hereinafter called "IPL") and PSI
Energy, Inc., formerly named Public Service Company of
Indiana, Inc. (hereinafter called "PSI") and CINergy
Services, Inc. (hereinafter called "CINergy Services"), shall
become effective as of the effective date of the Third
Amendment, dated June 30, 1995, to the 1992 Agreement and
shall continue in effect throughout the duration of the 1992
Agreement. IPL, PSI and CINergy Services are sometimes
hereinafter referred to individually as "Party" or
collectively as "Parties" where appropriate.
SECTION 2 - SERVICES TO BE RENDERED
2.1 Any Party, by giving the other Parties notice, may
reserve from the other Parties (a) electric power ("Weekly
Short Term Power") for periods of one or more weeks or (b)
electric power ("Daily Short Term Power") for periods of one
or more days whenever the Party requested to reserve the same
is willing to make such power available. Under ordinary
circumstances such reservation shall extend for not less than
a calendar week if it begins with Sunday or for the balance
of the calendar week if it begins with any day subsequent to
Sunday; however, under unusual circumstances, the Parties may
mutually agree upon a reservation of Daily or Weekly Short
Term Power for a lesser number of days. In all cases the
Party asked to supply Daily or Weekly Short Term Power shall
be the sole judge as to the amounts and periods that it has
electric power available that may be reserved by another
Party as Short Term Power. A transaction made by any Party
under this Service Schedule C shall not extend beyond twelve
(12) months.
2.11 Prior to each reservation of Weekly or Daily Short
Term Power, the number of megawatts to be reserved, the
period of the reservation, the terms of such reservation, and
the source of such power if the supplying Party is in turn
reserving such power from another interconnected system which
is not a signatory to the 1992 Agreement ("Third Party"),
shall be determined by the Parties. Such reservation shall
be confirmed in writing at the request of any Party. If
during such period the conditions arise that could not have
been reasonably foreseen at the time of the reservation and
cause the reservation to be burdensome to the supplying
Party, such Party may by oral notice to the reserving Party,
such oral notice to be later confirmed in writing if
requested by any Party, reduce the number of megawatts
reserved by such amount and for such time as it shall specify
in such notice, but kilowatts reserved hereunder that the
supplying Party is in turn reserving from a Third Party may
be reduced only to the extent they are reduced by such Third
Party.
2.12 During each period that Weekly or Daily Short Term
Power has been reserved, the Party that has agreed to
supply such power shall upon call by the reserving Party
deliver associated electric energy ("Weekly or Daily
Short Term Energy") to the reserving Party as of the
interconnection point or points, as provided in Section
4.01 of Article 4 of the 1992 Agreement at a rate during
each hour of up to and including the number of megawatts
reserved.
SECTION 3 - COMPENSATION
3.1 Weekly Short-Term Power and Energy
3.1.1 Except as otherwise provided in Subsection 3.1.3
below, when IPL is the supplying Party, PSI shall pay
all of the following which are applicable (the
applicable demand charge rate per this Subsection is
limited by Subsection 3.5):
(a) for any week that Weekly Short-Term Power and
Energy is reserved, a demand charge rate to be
agreed upon by the Parties at the time such
Weekly Short-Term Power and Energy is
reserved, at a rate of up to $3.89 per
kilowatt reserved, except, for each day (other
than Sunday) during any part of which the
amount of such Weekly Short-Term Power and
Energy is reduced by IPL, the total demand
charge shall be reduced by one-sixth (1/6) of
said agreed upon demand charge rate for each
megawatt of the reduction;
(b) for Weekly Short-Term Energy delivered that is
generated by IPL, an energy charge to be
agreed upon by the Parties at the time of the
transaction of up to 110% of the Out-Of-Pocket
Cost (such cost being as of the
interconnection point or points, as defined in
Article 4 of the 1992 Agreement, taking into
account electrical losses incurred from the
source or sources of such energy to the
interconnection point or points) of supplying
such energy;
(c) for Weekly Short-Term Energy delivered that is
purchased by IPL from a Third Party, an energy
charge of 100% of the Out-Of-Pocket Cost paid
therefor by IPL, plus one (1) mill per
kilowatt-hour of such purchased energy (for
difficult to quantify energy-related costs),
plus any transmission losses resulting on
IPL*s system on account of the transaction,
and plus any taxes incurred by IPL on account
of the transaction.
3.1.2 Except as otherwise provided in Subsection 3.1.3
below, when PSI is the supplying Party, IPL shall pay
all of the following which are applicable (the
applicable demand charge rate per this Subsection is
limited by Subsection 3.6):
(a) for any week that Weekly Short-Term Power and
Energy is reserved, a demand charge rate to be
agreed upon by the Parties at the time such
Weekly Short-Term Power and Energy is
reserved. Said demand charge rate shall be at
a rate of up to $4,781 per megawatt reserved
(such charge pertains to the production
component only), except for each day (other
than Sunday) during any part of which the
amount of such Weekly Short-Term Power and
Energy is reduced by PSI, the total demand
charge shall be reduced by one-sixth (1/6) of
said agreed upon demand charge rate (rounded
to the nearest $0.10 per megawatt) for each
megawatt of the reduction. Non-firm
transmission service per the provisions of the
CINergy Services, Inc., FERC Electric Tariff,
Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇
Transmission Service Standard Tariff - NFT (or
any successor transmission tariff of similar
service) must be obtained;
(b) for Weekly Short-Term Energy delivered that is
generated by PSI, an energy charge to be
agreed upon by the Parties at the time of the
transaction of up to 110% of the Out-Of-Pocket
Cost (such cost being as of the
interconnection point or points, as defined in
Article 4 of the 1992 Agreement, taking into
account electrical losses incurred from the
source or sources of such energy to the
interconnection point or points) of supplying
such energy;
(c) for Weekly Short-Term Energy delivered that is
purchased by PSI from a Third Party, an energy
charge of 100% of the Out-Of-Pocket Cost paid
therefor by PSI, plus $1.00 per megawatt-hour
of such purchased energy (for difficult to
quantify energy-related costs), plus any
transmission losses resulting on the system of
the CINergy Operating Companies on account of
the transaction, and plus any regulatory
commission charges and taxes incurred by PSI
on account of the transaction.
3.1.3 When Weekly Short-Term Power and Energy is
purchased by the supplying Party from a Third Party
specifically for the reserving Party, the reserving
Party shall pay the supplying Party all of the following
which are applicable:
(a) the demand charge paid therefor by the supplying
Party to the Third Party for such electric power
and energy;
(b) when IPL is the supplying Party:
(1) for any week such Weekly Short-Term Power and
Energy is reserved, a demand charge rate per
kilowatt to be agreed upon by the Parties at
the time such Weekly Short-Term Power and
Energy is reserved, at a rate of up to $0.29
per kilowatt reserved (such charge pertains to
the reservation of transmission). In the
event the amount of such Weekly Short-Term
Power and Energy is reduced by IPL, said
demand charge shall be reduced by the sum of
(i) one-sixth (1/6) of the said agreed upon
weekly rate per kilowatt of the reduction for
each day (other than Sunday) during which such
reduction is in effect, and (ii) the
reduction, if any, in the demand charge paid
by IPL to the Third Party;
(c) when PSI is the supplying Party:
(1) Non-firm transmission service per the
provisions of the CINergy Services, Inc., FERC
Electric Tariff, Original Volume No. 3, Non-
Firm Transmission Service Standard Tariff -
NFT (or any successor transmission tariff of
similar service) must be obtained. In the
event the amount of such Weekly Short-Term
Power and Energy is reduced by PSI, said
demand charge shall be reduced by the sum of
(i) one-sixth (1/6) of the said agreed upon
weekly rate per megawatt of the reduction for
each day (other than Sunday) during which such
reduction is in effect, and (ii) the
reduction, if any, in the demand charge paid
by PSI to the Third Party;
(2) for each megawatt-hour purchased by PSI from a
Third Party to supply Weekly Short-Term Energy
delivered during such period, an energy charge
of 100% of the Out-Of-Pocket Cost paid
therefor by PSI, plus $1.00 per megawatt-hour
(for difficult to quantify energy-related
costs), plus any transmission losses resulting
on the system of the CINergy Operating
Companies on account of the transaction, and
plus any regulatory commission charges and
taxes incurred by PSI on account of the
transaction.
3.2 Daily Short-Term Power and Energy
3.2.1 Except as otherwise provided in Subsection 3.2.3
below, when IPL is the supplying Party, PSI shall pay
all of the following which are applicable (the
applicable demand charge rate per this Subsection is
limited by Subsection 3.5):
(a) for any day that Daily Short-Term Power and Energy
is reserved, a demand charge rate to be agreed upon
by the Parties at the time such Daily Short-Term
Power and Energy is reserved, at a rate of up to
$0.778 per kilowatt reserved, except, for any day
during any part of which the amount of such Daily
Short-Term Power and Energy is reduced by IPL, the
agreed upon demand charge will only be paid for the
power still available;
(b) for Daily Short-Term Energy delivered that is
generated by IPL, an energy charge of up to 110% of
the Out-of-Pocket Cost (such cost being as of the
interconnection point or points, as defined in
Article 4 of the 1992 Agreement, taking into
account electrical losses incurred from the source
or sources of such energy to the interconnection
point or points) of supplying such energy;
(c) for Daily Short-Term Energy delivered that is
purchased by IPL from a Third Party, an energy
charge of 100% of the Out-of-Pocket Cost paid
therefor by IPL, plus one (1) mill per kilowatt-
hour of such purchased energy (for difficult to
quantify energy-related costs), plus any
transmission losses resulting on IPL*s system on
account of the transaction, and plus any taxes
incurred by IPL on account of the transaction.
3.2.2 Except as otherwise provided in Subsection 3.2.3
below, when PSI is the supplying Party, IPL shall pay all of
the following which are applicable (the applicable demand
charge rates per this Subsection are limited by Subsection
3.6):
(a) for any day that Daily Short-Term Power and Energy
is reserved, a demand charge rate to be agreed upon
by the Parties at the time such Daily Short-Term
Power and Energy is reserved. Said demand charge
rate shall be at a rate of up to $797 per megawatt
reserved (such charge pertains to the production
component only), the total charge in any week shall
be no more than the product of $4,781 and the
greatest number of megawatts reserved in any day
during said week, except for any day during any
part of which the amount of such Daily Short-Term
Power and Energy is reduced by PSI, the agreed upon
demand charge will only be paid for the power still
available. Non-firm transmission service per the
provisions of the CINergy Services, Inc., FERC
Electric Tariff, Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇
▇▇▇▇▇-▇▇-▇▇▇▇▇ Transmission Service Standard Tariff
- NFT (or any successor transmission tariff of
similar service) must be obtained;
(b) for Daily Short-Term Energy delivered that is
generated by PSI, an energy charge of up to 110% of
the Out-of-Pocket Cost (such cost being as of the
interconnection point or points, as defined in
Article 4 of the 1992 Agreement, taking into
account electrical losses incurred from the source
or sources of such energy to the interconnection
point or points) of supplying such energy;
(c) for Daily Short-Term Energy delivered that is
purchased by PSI from a Third Party, an energy
charge of 100% of the Out-of-Pocket Cost paid
therefor by PSI, plus $1.00 per megawatt-hour of
such purchased energy (for difficult to quantify
energy-related costs), plus any transmission losses
resulting on the system of the CINergy Operating
Companies on account of the transaction, and plus
any regulatory commission charges and taxes
incurred by PSI on account of the transaction.
3.2.3 When Daily Short-Term Power and Energy is
purchased by the supplying Party from a Third Party
specifically for the reserving Party, the reserving
Party shall pay the supplying Party all of the following
which are applicable:
(a) the demand charge paid therefor by the supplying
Party to the Third Party for such electric power
and energy;
(b) when IPL is the supplying Party:
(1) for any day such Daily Short-Term Power and
Energy is reserved, a demand charge per kilowatt to
be agreed upon by the Parties at the time such
Daily Short-Term Power and Energy is reserved, at a
rate of up to $0.058 per kilowatt reserved (such
charge pertains to the reservation of
transmission). In the event the amount of such
Daily Short-Term Power and Energy is reduced by
IPL, said demand charge shall be reduced by the sum
of (i) one-sixteenth (1/16) of the said agreed upon
daily rate per kilowatt of the reduction for each
hour in any day during which such reduction is in
effect, such reduction not to exceed the agreed
upon demand charge for such day, and (ii) the
reduction, if any, in the demand charge paid by IPL
to the Third Party;
(2) for each kilowatt-hour purchased by IPL from a
Third Party to supply Daily Short-Term Energy
delivered during such period, an energy charge of
100% of the Out-of-Pocket Cost paid therefor by
IPL, plus one (1) mill per kilowatt-hour (for
difficult to quantify energy-related costs), plus
any transmission losses resulting on IPL*s system
on account of the transaction, and plus any taxes
incurred by IPL on account of the transaction;
(c) when PSI is the supplying Party:
(1) Non-firm transmission service per the
provisions of the CINergy Services, Inc., FERC
Electric Tariff, Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - ▇▇▇ (▇▇ any
successor transmission tariff of similar service)
must be obtained. In the event the amount of such
Daily Short-Term Power and Energy is reduced by
PSI, said demand charge shall be reduced by the sum
of (i) one-sixteenth (1/16) of the said agreed upon
daily rate per megawatt of the reduction for each
hour in any day during which any such reduction is
in effect, such reduction not to exceed the agreed
upon demand charge for such day, and (ii) the
reduction, if any in the demand charge paid by PSI
to the Third Party;
(2) for each megawatt-hour purchased by PSI from a
Third Party to supply Daily Short-Term Energy
delivered during such period, an energy charge of
100% of the Out-of-Pocket Cost paid therefor by
PSI, plus $1.00 per megawatt-hour (for difficult to
quantify energy-related costs), plus any
transmission losses resulting on the system of the
CINergy Operating Companies on account of the
transaction, and plus any regulatory commission
charges and taxes incurred by PSI on account of the
transaction.
3.3 Notwithstanding the rates stated in the Subsections
3.1.1, 3.1.3, 3.2.1 and 3.2.3 above, when IPL is the
supplying Party, the sum of the demand and energy charges for
each specific reservation made pursuant to Section 2 of this
Service Schedule C shall not:
(1) exceed the total of:
(i) the product of the number of kilowatts
reserved for such reservation times the maximum
Weekly or Daily demand charge, whichever is
applicable, specified above in Subsections 3.1.1,
3.1.3, 3.2.1 and 3.2.3, as appropriate; and
(ii) the product of the number of kilowatt-hours
supplied for such reservation times 110% of the
average cost per kilowatt-hour of energy generated
by IPL's Petersburg Unit No. 4 for the last
preceding month during which it was run; or
(2) be less than 110% of the total Out-Of-Pocket Cost
of supplying the Short Term Energy for such reservation.
3.4 Notwithstanding the rates stated in Subsections 3.1.2,
3.1.3, 3.2.2 and 3.2.3 above, when PSI and CINergy Services
are the supplying Party, the sum of the demand and energy
charges for each specific reservation made pursuant to
Section 2 of this Service Schedule C shall not:
(1) exceed the total of:
(i) the product of the number of megawatts reserved
for such reservation times the maximum Weekly or
Daily demand charge, whichever is applicable,
specified above in Subsections 3.1.2, 3.1.3, 3.2.2
and 3.2.3, as appropriate, and plus
(ii) the product of the number of megawatt-hours
supplied for such reservation times 110% of the
average cost per megawatt-hour of energy generated
by the CINergy Operating Companies* ▇▇▇▇▇▇ Unit No.
1 and ▇▇▇▇▇▇ Unit No. 5 for the preceding month;
nor
(2) be less than 100% of the Out-Of-Pocket Costs of
supplying the Short Term Energy for such reservation.
3.5 The aggregate instant total capacity of all IPL sales
under this and other Service Schedules which are a part of
this and other IPL Agreements, for which the rates charged
have been supported on the basis that total revenues will not
exceed the costs of Petersburg Unit No. 4, is limited to
515MW.
3.6 The total power of all sales by the CINergy Operating
Companies and CINergy Services under this and other
agreements of the CINergy Operating Companies and CINergy
Services, for which the agreed upon demand charge is
determined based on ▇▇▇▇▇▇ ▇▇▇▇ ▇▇. ▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇. ▇,
is limited to 925 MWs (CINergy Operating Companies* ▇▇▇▇▇▇
Unit No. 1 Net Demonstrated Capability of 612 MWs and ▇▇▇▇▇▇
Unit No. 5 Net Demonstrated Capability of 313 MWs) on an
hourly basis. For sales in excess of the power limitation of
925 MWs noted above, the rate shall consist of an energy
charge of up to 110% of Out-of-Pocket Cost and a demand
charge of up to $1,252 per megawatt per week or a demand
charge of up to $209 per megawatt per day, the total charge
in any one week shall be no more than the product of $1,252
and the greatest number of megawatts reserved in any hour
during said week (such charge pertains to the production
component only). Non-firm transmission service per the
provisions of the CINergy Services, Inc., FERC Electric
Tariff, Original Volume ▇▇. ▇, ▇▇▇-▇▇▇▇ ▇▇▇▇▇-▇▇-▇▇▇▇▇
Transmission Service Standard Tariff - NFT (or any successor
transmission tariff of similar service) must be obtained; but
in no event shall the total revenue (energy charge and demand
charge combined) be less than 100% of the Out-of-Pocket Costs
of supplying the Short-Term Energy for such reservation.
Notwithstanding all previous Subsections, when power is sold
under both this Subsection and Subsection 3.1.2 in any week,
the total demand charge will be the weighted average demand
charges in this Subsection and Subsection 3.1.2. Such
weighting will be developed by adding the number of hours
that power was provided under this Subsection times the
demand charge under this Subsection and the number of hours
that power was provided under Subsection 3.1.2 times the
demand charge in Subsection 3.1.2, with such sum being
divided by the total number of hours in the week. Also, when
power is sold under both this Subsection and Subsection 3.2.2
in any day, the total demand charge will be the weighted
average demand charges in this Subsection and Subsection
3.2.2. Such weighting will be developed by adding the number
of hours that power was provided under this Subsection times
the demand charge under this Subsection and the number of
hours that power was provided under Subsection 3.2.2 times
the demand charge in Subsection 3.2.2, with such sum being
divided by the total number of hours in the day.
EXHIBIT IV
(SECOND REVISION)
SERVICE SCHEDULE D
CARMEL SOUTHEAST TAP NETWORK POWER AND ENERGY TRANSFER
SECTION 1 - DURATION
1.1 This Service Schedule, being a part of and under the
Interconnection Agreement (referred to herein as the "1992
Agreement") dated as of May 1, 1992 between Indianapolis
Power & Light Company (hereinafter called "IPL") and PSI
Energy, Inc., formerly named Public Service Company of
Indiana, Inc., (hereinafter called "PSI") and CINergy
Services, Inc. (hereinafter called "CINergy Services"), shall
become effective as of the earlier date of either September
1, 1995 or the effective date of the Third Amendment, dated
June 30, 1995, and shall continue in effect through August
31, 1996, unless extended as provided in Section 6 hereof.
IPL, PSI and CINergy Services are sometimes hereinafter
referred to individually as "Party" or collectively as
"Parties" where appropriate.
SECTION 2 - FACILITIES TO BE PROVIDED
2.1 PSI shall provide, install, operate and maintain, at its
own expense, during the term of this Service Schedule D as
defined in Section 6 hereof, the following facilities:
(i) At its Carmel Southeast Substation - a 138,000 volt
three-phase interrupting device, a 24/40 MVA transformer,
12,470 volt metering equipment, relaying, switching, a
supervisory control remote terminal unit, a communication
circuit from the supervisory unit to IPL*s Load Dispatch
Office and appurtenant equipment, all of which shall be
subject to the prior approval of IPL. PSI shall be
responsible for installing, owning and maintaining all
necessary protection equipment required by IPL to protect
IPL*s facilities associated with Carmel Tap. PSI*s remote
terminal unit shall provide data acquisition, remote status
and control of the load and allow PSI to provide real time
dispatch of their generation to their load as well as load
control while IPL will be provided real time breaker status
and load data.
(ii) A 138,000 volt transmission line extending from
Carmel Southeast Substation to Transmission Tower
Number 7 (Map Section 173A) on IPL's 138,000 volt
North-River Road (132-57) transmission line,
together with a 138,000 volt tap at such tower, to
be known as the Carmel Tap Point.
2.2 IPL shall provide, install, operate and maintain, as
direct assignment facilities at the sole benefit and expense
of PSI, during the term of the Carmel Tap Point as defined in
Section 6 hereof, a 138,000 volt two-way switching point with
supervisory controlled 138,000 volt line interrupting
disconnect switches and associated facilities such as a
switch tower, supervisory terminal unit and communication
circuit at the Carmel Tap Point.
SECTION 3 - SERVICES TO BE RENDERED
3.1 The Parties hereto mutually agree that their respective
radial distribution systems will not be operated in parallel
through the Carmel Tap Point. Electric energy supplied by
IPL to PSI at the Carmel Tap Point will be treated as
capacity and energy simultaneously transferred into IPL's
system by PSI through the other interconnection points of the
Parties and will be used only to supply the ultimate
consumers of PSI who are or may be served from PSI's Carmel
Southeast Substation. Any capacity or energy delivered by
IPL to PSI through the Carmel Tap Point shall be
simultaneously supplied by PSI to IPL through any of the
interconnection points of the Parties. PSI*s supplied energy
shall include an adder of approximately 3%-5% to the capacity
and energy delivered to the Carmel Tap by IPL to compensate
IPL for capacity and energy losses occurring on IPL*s system
and PSI*s tapped transmission line and transformer bank
(metered at secondary voltage) due to the transfer of energy
to the Carmel Tap Point.
3.2 IPL shall provide PSI with the following services:
1) Firm, network transmission service including a
capacity reservation (34,500 volt, 138,000 volt and
above) of up to and including 20 MW*s (measured at
the other IPL/PSI interconnection points as defined
in the 1992 Agreement). Said service and
reservation shall be planned for and provided on
the same basis as IPL*s firm native load customers
only during the term of this service schedule as
set forth in Section 6 herein of this Agreement.
2) Non-firm transmission service (34,500 volt, 138,000
volt and above) up to and including 30 MW*s
(measured at the other IPL/PSI interconnection
points in the 1992 Agreement) in addition to the
firm transmission listed in Point 1 above. Said
non-firm service shall be on an as available,
interruptible basis when requested by PSI.
Upon IPL*s request, PSI shall immediately curtail and/or
interrupt its firm load served by the 20 MW firm network
transmission and reservation service on the same basis as
IPL*s firm native load customers. If PSI*s demand exceeds
their reservation (herein called "excess loading") PSI shall
demonstrate that all such demand exceeding their reservation
is 1) immediately interruptible by contract or 2) that such
excess loading occurred due to emergency switching lasting
less than a total of two (2) weeks within any six-month
period. Otherwise such excess loading shall be treated as
having automatically increased PSI*s reservation, for billing
purposes only, until IPL is satisfied PSI has taken actions
to permanently eliminate such excess loading. IPL shall
coordinate non-emergency maintenance outages with PSI and
provide a minimum notification by 12:00 noon of the day
before the scheduled outage.
3.3 IPL and PSI shall periodically conduct independent
and/or joint studies of their future systems to serve the
Indianapolis northeast metropolitan area. PSI shall annually
update and provide IPL with their ten year demand projections
for the Carmel Tap Point. If such studies indicate problems
due to PSI*s 20 MW reservation or projected increase in
reservation, then IPL and PSI shall jointly or independently,
as soon as practicable, develop plans and estimates of cost
for the installation of any additional equipment or
facilities necessary to effect a long term solution to such
problem so that transmission services hereunder may be
reliably continued in accordance with IPL standards.
IPL*s studies of this service cover the first five years and
identified facilities during that period which may need to be
upgraded if area demand grows faster than presently
projected. If facility upgrades are required, PSI shall pay
annual carrying costs on a monthly basis during the time
period from the in-service date of the facilities until IPL*s
area load increases by the amount of PSI*s 20 MW reservation
plus actual and projected increases in reservation (herein
called "period of advancement") after which the remaining
costs shall be rolled into IPL*s rate analysis. Any time
PSI*s reservation, as determined under 3.2 above, requires
IPL to install facilities in advance of its need, PSI shall
pay annual carrying cost on such facilities during the period
of advancement. Increased reservations beyond 20 MWs shall
be treated as interruptible until all necessary facilities to
reliably accommodate these loads are placed in service. IPL
will not increase or upgrade the capacity of its existing or
planned transmission facilities in order to provide service
under this Agreement if doing so would unduly 1) impair IPL*s
system reliability or 2) jeopardize the benefits of service
or 3) increase the cost of service to IPL*s Native Load
Customers and other customers to whom IPL has a pre-existing
contractual obligation.
In the event PSI does not elect to continue its reservation
after the term of this Service Schedule, PSI shall pay 1) the
stranded cost of all IPL*s facilities directly assignable to
providing firm service for PSI*s reservation and 2) the
remaining annual cost on a monthly basis of all system
improvements from the termination date until IPL*s area load
increase equals the amount of PSI*s reservation. In the
event IPL can*t obtain regulatory approvals for facility
modifications needed to increases PSI*s reservation, then
firm service shall not be provided for the amount of the
increased service reservation.
3.4 PSI shall provide for ancillary services such as dynamic
reactive var/voltage support, all generation reserves, real
time generation dispatch, load following and dispatch control
services needed to support the operation of the Carmel Tap
Point.
3.5 IPL shall file with the FERC an amendment to Service
Schedule D for all direct assignment facilities (not covered
in Section 2.2) to be provided for PSI by IPL under this
Service Schedule and for all costs for advanced system
improvements during the "period of advancement" due to the
PSI transmission reservation provided under Service Schedule
D. FERC*s failure to accept the cost assignments for either
direct assignment facilities and/or advanced system
improvements due to the PSI network load service provided in
this Service Schedule D shall result in 1) IPL terminating
its obligation to provide and plan for PSI*s transmission
reservation as covered in Section 3.2 and Section 3.3 above
or 2) PSI may elect to reduce the level and/or firmness of
PSI*s transmission reservation so that additional direct
assignment facilities and/or system improvement facility
advancements won*t be needed or 3) PSI may elect to terminate
service provided hereunder provided that upon termination of
this Service Schedule D by PSI, PSI shall remain responsible
for paying IPL all costs remaining for all direct assignment
facilities provided by IPL and all remaining costs for all
advanced system improvements attributed to PSI during the
period of advancement where said facilities have been filed
with and accepted by the FERC including the direct assignment
facilities provided initially under Section 2.2. The
stranded cost of the direct assignment facilities provided
under Section 2.2 shall be calculated and marked up for tax
effects as shown in Attachment 1 and shall be paid by PSI
within 30 days of receipt of the ▇▇▇▇ from IPL.
SECTION 4 - DEVIATIONS IN DELIVERIES AT CARMEL TAP POINT
4.1 The Parties agree that with respect to the Carmel Tap
Point, PSI shall simultaneously supply (including adjustments
for losses) to IPL from PSI*s other interconnection points
with IPL the capacity and energy delivered to PSI by IPL.
The Parties recognize, however, that despite their best
efforts to simultaneously supply and deliver capacity and
energy (including adjustments for losses) deviations between
actual and scheduled energy transfers may occur. Electric
energy resulting from such deviations shall, at the option of
IPL, be settled for either by return of equivalent energy or
by payment of Out-Of-Pocket Costs. If equivalent energy is
returned, it shall be returned at times when the generating
costs of IPL are equivalent to the generating costs of IPL at
the time of the deviations or, if IPL elects to have
equivalent energy returned under different conditions, it
shall be returned in such amounts, to be mutually agreed
upon, as will compensate IPL for the difference in
conditions.
IPL, at its option, may elect to ▇▇▇▇ for such Out-Of-Pocket
Costs, plus ten percent of such cost, for any energy supplied
over and above that scheduled by PSI for any hour or hours
during the billing period. Such costs shall be determined at
the Carmel Tap Point by taking into account electrical losses
incurred from the source or sources of such energy to said
Tap Point.
4.2 If IPL elects to ▇▇▇▇ for any energy supplied over and
above that scheduled by PSI for any hour or hours during the
billing period where the energy was supplied by a Third Party
then in accordance with the FERC Order 84 the maximum amount
to be billed by IPL to PSI shall be 100% of the Third Party
demand and energy charge plus 1 mill/kwhr (the 1 mill/kwhr
adder is applicable only to transactions with a duration of
less than one year) plus IPL*s network transmission rate as
accepted by the FERC under this Service Schedule D.
SECTION 5 - COMPENSATION
5.1 FIRM SERVICE - Electric power measured in kilowatts
supplied by PSI and delivered at the Carmel Tap Point under
the 1992 Agreement by IPL to PSI shall be billed on a monthly
basis the annual cost of IPL*s transmission system multiplied
by the ratio of the sum of PSI*s twelve 20 MW reservations
divided by IPL*s annual system peak demand which equals
$283,200 annually as calculated in the cost support Appendix
A. The loss factors consisting of a 3-5% adder, as noted in
Section 3.1 hereof, shall include PSI*s radial transmission
line and transformer bank associated with the Carmel Tap
Point and IPL*s 34,500 volt and above transmission system.
The loss factors shall include PSI*s radial transmission line
and transformer bank associated with the Carmel Tap Point and
IPL*s transmission system. The loss factors shall be
determined by the annual transmission system loss studies
performed by IPL and PSI. Also, increases in PSI*s
reservation shall be billed by using the same methodology.
5.2 NON-FIRM SERVICE - Electric power measured in kilowatts
supplied by PSI and delivered at the Carmel Tap Point under
the 1992 Agreement by IPL to PSI shall be billed at $1.18 per
kilowatt-month plus $0.01 per kilowatt-month for IPL dispatch
control. This demand charge for non-firm service applies to
usage above PSI*s firm service reservation and shall be based
upon the difference in maximum hourly demand in kilowatts
measured and the amount of PSI*s reservation in the calendar
month of billing. The loss factors consisting of a 3-5%
adder, as noted in Section 3.1 hereof, shall include PSI*s
radial transmission line and transformer bank associated with
the Carmel Tap Point and IPL*s 34,500 volt and above
transmission system. The loss factors shall be determined by
the annual transmission system loss studies performed by IPL
and PSI.
5.3 DIRECT ASSIGNMENT FACILITIES - PSI shall pay IPL on a
monthly basis IPL*s annual charges on the total installed
cost of the facilities provided in Section 2.2 above
multiplied by IPL*s annual carrying charges as calculated in
Attachment 1 and revisions will be filed with the FERC.
SECTION 6 - TERM OF AGREEMENT
6.1 This Service Schedule shall terminate August 31, 1996
unless PSI notifies IPL at least six (6) months prior to such
termination date that it desires to continue service to the
Carmel Tap Point; provided however, that any continued
service is subject to such terms and conditions as are
mutually agreed to by the Parties.
Fourth Amendment
June 26, 1996
▇▇. ▇▇▇ ▇. ▇▇▇▇▇
Cinergy Corporation
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: IPL/PSI Interconnection Agreement - Service Schedule D
Dear ▇▇▇:
This is to confirm the phone conversation on June 10, 1996,
in which you and ▇▇▇▇▇ ▇▇▇▇▇, Director, Electric System
Planning, discussed extending our agreement regarding
transmission service IPL provides PSI Energy at the Carmel
Southeast Tap by one year to and including August 31, 1997.
You indicated that PSI Energy was agreeable to so extending
Service Schedule D (Carmel Southeast Tap Network Power and
Energy Transfer).
Please confirm by signature below, Cinergy's agreement that
the existing Service Schedule D, under which IPL currently
provides service to PSI Energy at the Carmel Southeast Tap,
will be extended by one year to and including August 31,
1997, with the same rates, terms and conditions. Further,
Cinergy and IPL agree that PSI Energy also has the option to
take transmission service for the Carmel Southeast Tap under
any open access transmission tariffs that may be filed by IPL
and which become effective after the date of this letter
agreement.
Three original copies of this letter are provided for your
signature. Please return two signed copies to IPL.
Regards,
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇.
▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇.
Vice President - Resource
Planning & Rates
Enclosures
ACKNOWLEDGEMENT
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: General Manager
Company: Cinergy
Fifth Amendment
June 10, 1997
▇▇. ▇▇▇ ▇. ▇▇▇▇▇
Cinergy Corporation
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: IPL/PSI Interconnection Agreement - Service Schedule D
Dear ▇▇▇:
This letter seeks to extend our existing agreement regarding
transmission service IPL provides PSI Energy at the Carmel
Southeast Tap, which expires August 31. IPL proposes to
extend Service Schedule D (Carmel Southeast Tap Network Power
and Energy Transfer), a part of the existing interconnection
agreement between IPL and Cinergy, dated June 30, 1995, by
one year, to and including August 31, 1998.
Please confirm by signature below, Cinergy's agreement that
the existing Service Schedule D, under which IPL currently
provides service to PSI Energy at the Carmel Southeast Tap,
will be extended by one year to and including August 31,
1998, with the same rates, terms and conditions. Further,
Cinergy and IPL agree that PSI Energy also has the option to
take transmission service for the Carmel Southeast Tap under
any open access transmission tariffs that may be filed by IPL
and which become effective after the date of this letter
agreement.
Three original copies of this letter are provided for your
signature. Please return one signed original copy to me and
retain one copy for your files.
Regards,
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President
Resource Planning & Rates
Enclosures
ACKNOWLEDGEMENT
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Vice President
Electric System Operations
Company: Cinergy Corp.
SIXTH AMENDMENT
TO THE
INTERCONNECTION AGREEMENT
AMONG
INDIANAPOLIS POWER & LIGHT COMPANY
PSI ENERGY, INC.
AND CINERGY SERVICES, INC.
0.01 THIS SIXTH AMENDMENT, dated on the 16th day of December,
1997, among INDIANAPOLIS POWER & LIGHT COMPANY ("IPL"), PSI
ENERGY ("PSI"), INC., and CINERGY SERVICES, INC. ("Cinergy
Services"). IPL, PSI, and Cinergy Services are referred to
individually as "Party" and collectively as "Parties" where
appropriate.
WITNESSETH:
0.02 WHEREAS, There is now in force and effect between IPL,
PSI, and Cinergy Services an Interconnection Agreement, dated
as of May 1, 1992 (the "1992 Agreement"); and
0.03 WHEREAS, the Parties desire to modify the 1992
Agreement, and
0.04 NOW, THEREFORE, in consideration of the premises and
mutual covenants and agreements of the Parties, as herein set
forth, the Parties agree as follows:
1.01 The following provisions of the 1992 Agreement are
modified as follows:
1.01.1 Section 4.01 of the 1992 Agreement shall read
as follows:
"4.01. Delivery Points. All electric energy
delivered under the 1992 Agreement shall be of the
character commonly known as three-phase sixty Hertz
energy, and shall be delivered at the
Interconnection Points specified under Section 1.01
hereof, at a nominal voltage of 138,000 volts at
the Five Points and Centerton Interconnection
Points, at the 138 kV Petersburg Interconnection
Point, and at the Carmel Tap Point; and at a
nominal voltage of 345,000 volts at the Whitestown
and Gwynneville Interconnection Points, and at the
345 kV Petersburg Interconnection Point; and at
such other points and voltages as hereafter may be
agreed upon by the Parties pursuant to Section 1.02
hereof. In addition to the interconnection points
provided in Sections 1.01 and 1.02, PSI may request
IPL deliver electric energy under the 1992
Agreement at interconnection points IPL may have
with third parties (hereinafter referred to as
"Alternate Delivery Points")."
1.01.2 Section 4.03 of the 1992 Agreement shall read
as follows:
"4.03. Metering Points. Electric power and energy
supplied and delivered under the 1992 Agreement
shall be measured by suitable metering equipment
which shall be provided, owned and maintained by
PSI or IPL as designated below at the following
metering points:
(i) 138,000 volt metering equipment installed
by PSI at the Five Points Substation;
138,000 volt metering equipment installed
by PSI at the Centerton Substation;
138,000 and 345,000 volt metering
equipment installed by IPL at the
Petersburg Station; 345,000 volt metering
equipment installed by IPL at its
Sunnyside Substation and at PSI's
Gwynneville and Whitestown Substations;
and 12.47 kV metering equipment installed
by PSI at its Carmel Southeast
Substation, and
(ii) At such other locations as hereafter may
be agreed upon by the Parties pursuant to
Section 1.02 hereof.
Electric power and energy supplied and delivered at
the Alternate Delivery Points specified in Section
4.01 shall be measured by metering equipment either
provided, owned and maintained by IPL or third
parties. Such metering equipment shall not be
subject to Sections 4.04 through 4.07 but shall
meet the reasonable requirements of the Operating
Committee."
1.01.3 Section 6.03 of the 1992 Agreement shall read
as follows:
"6.03. Billing Payments. All bills for amounts
owed by one Party to the other Party shall be due
on the first business day following the fifteenth
(15th) day after the end of the calendar month or
period service was rendered, or on the tenth (10th)
business day following receipt of a ▇▇▇▇, whichever
is later. Payments shall be made by electronic
transfer or by such other mutually agreeable method
as shall cause such payment to be available for the
account of the payee on or before the due date.
Interest on unpaid amounts, both principal and
interest, shall accrue daily at the then current
prime interest rate per annum of The Chase
Manhattan Bank, N.A., New York, New York, plus two
percent (2%) per annum, or the maximum rate
permitted by law, whichever is less, from the date
due until the date upon which payment is made."
1.01.4 Section 7.01 of the 1992 Agreement shall read
as follows:
"7.01. Operating Committee Organization and
Duties. To coordinate the operation of their
respective generation, transmission, and
substation facilities in order that the benefits of
the 1992 Agreement may be realized by the Parties
to the fullest practicable extent, the Parties
shall establish a committee of authorized
representatives to be known as the Operating
Committee. Each of the Parties shall designate in
writing delivered to the other Party, the person
who is to act as its authorized representative (the
"OC Representative") on said committee (and the
person or persons who may serve as Alternate
whenever the OC Representative is unable to act).
The OC Representative and Alternate or Alternates
shall each be persons familiar with the generation,
transmission, and substation facilitates of the
system of the Party he represents, and each shall
be fully authorized (i) to cooperate with the other
OC Representative (or Alternates) and (ii) as the
need arises and subject to the declared intentions
of the Parties as herein set forth and to the terms
hereof and the terms of any other agreements then
in effect between the Parties, to determine and
agree from time to time upon the following:
(i) All matters pertaining to the
coordination of maintenance of the
generation and transmission facilities of
the Parties.
(ii) All matters pertaining to the control of
time, frequency, energy flow, kilovar
exchange, power factor, voltage, and
other similar matters bearing upon the
satisfactory synchronous operation of the
systems of the Parties.
(iii) Such other matters not specifically
provided for herein upon which
cooperation, coordination and agreement
as to quantity, time, method, terms and
conditions are necessary, in order that
the operation of the respective systems
of the Parties may be coordinated to the
end that the potential benefits
anticipated by the Parties will be
realized to the fullest extent
practicable.
(iv) All matters pertaining to the delivery of
electric power and energy pursuant to the
1992 Agreement."
1.01.5 Section 8.02 of the 1992 Agreement shall read
as follows:
"8.02. Relative Responsibilities. Each Party
assumes all responsibility for receipt and delivery
of electricity on its system to and from the Points
of Interconnection specified in Section 1.01 hereof
or agreed upon pursuant to Section 1.02 hereof or
as requested by PSI pursuant to Section 4.01.
Neither Party assumes any responsibility with
respect to the construction, installation,
maintenance or operation of the system of the other
Party or of the systems of third parties, in whole
or in part. In no event shall one Party be liable
to the other Party for damage or injury to any
person or property, whatsoever, arising, accruing
or resulting from, in any manner, the receiving,
transmission, control, use, application or
distribution of said electric power and energy.
Each Party shall use reasonable diligence to
maintain its facilities in proper and serviceable
condition, and shall take reasonable steps and
precautions for maintaining the services agreed to
be provided and received under the 1992 Agreement.
Each Party shall be responsible for its own
compliance with all applicable environmental
regulations and shall bear all costs arising from
its failure to comply with such environmental
regulations."
2.01 This Sixth Amendment shall be effective as of February
15, 1998 or as of the date it becomes effective under
applicable regulations or orders of FERC, whichever is later.
3.01 This Sixth Amendment is made subject to the jurisdiction
of any governmental authorities having jurisdiction in the
premises.
IN WITNESS WHEREOF, the Parties have caused this Sixth
Amendment to the 1992 Agreement to be executed by their
respective duly authorized officers, as of the day, month and
year first above-written.
INDIANAPOLIS POWER & LIGHT COMPANY
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇, President and
Chief Operating Officer
CINERGY SERVICES, INC.
By /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Vice President
PSI ENERGY, INC.
By /s/ ▇▇▇▇ ▇▇▇▇
▇▇▇▇ ▇▇▇▇, President