EXHIBIT 10.21
This contract cancels and supersedes previous contract with (name, date,
contract number): Amended Agreement for Electric Service between Lone Star
Steel Company and SWEPCO, dated October 1, 1976
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FORM 702-T Southwestern Electric Power Company
----------------- CONTRACT FOR ELECTRIC SERVICE
CONTRACT NUMBER
42827 Texas
-----------------
Lone Star Steel Company, ▇.▇. ▇▇▇ ▇▇▇▇, ▇▇▇. ▇▇▇ ▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇-▇▇▇▇ hereinafter called "Customer", and Southwestern Electric Power
Company, hereinafter called "Company", enter into the following contract:
The Company will sell and deliver to the the Customer at SWEPCO's Lone
Star South Substation located along Highway ▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇
and the Customer will receive and pay for electric service for a period of 10
years beginning the later of October 1, 1996, or approval by the
Commission(1), and thereafter, in automatically recurring yearly periods, (2)
terminated by (3) prior written notice from either party to the other.
Electric service will be delivered and received hereunder in accordance with
the standard Terms and Conditions which are printed on the reverse side
hereof and made a part of this contract, and Customer agrees to observe and
be bound by them.
Electric service delivered by the Company to the Customer will be 3 wire
3 phase, 60 cycle, alternating current at a nominal voltage of 138,000, in
the amount of approximately 120,000 kilowatts, and will be metered at 138,000
volts.
The Customer will use such electric service in the operation of Steel
Mill and will be billed and will pay for this service in accordance with the
rate schedule attached to this contract and made a part hereof.
The following rate schedule and any special terms are applicable to this
contract: Contract with Lone Star Steel Company (LSS); Attachment to the
Contract for Electric Service between Lone Star Steel Company and
Southwestern Electric Power Company.
In consideration of the investment on the part of the Company to make
electric service available under this contract, the minimum monthly billing
provision of the aforementioned rate schedule applies, but will not be less
than the charge for 40,000(4) kw plus the fuel and tax adjustment clauses
provided in the rate schedule.
In the event a new or revised rate schedule applicable to service under
this contract is authorized and made effective by the duly constituted
regulatory authority or authorities having jurisdiction in the premises,
which said rate schedule supersedes or modifies the rate schedule which is
attached to this contract or printed on the reverse side hereof, then from
and after the date upon which said new or revised rate schedule becomes
authorized and effective, electric service to Customer will be billed and
Customer will pay for such service in accordance with such new or revised
rate schedule.
If Customer fails to perform any of his obligations under this contract,
including the prompt payment of monthly bills, or fails to observe or comply
with any of the Terms and Conditions as printed on the reverse side of this
sheet, the Company may suspend delivery of electric service and will not be
liable in any manner for loss or damage arising through such suspension. No
such suspension will interfere with the enforcement by the Company of any
other legal right or remedy nor relieve the Customer from liability to pay
the minimum charge during any suspension. No delay by the Company in
enforcing any of its rights hereunder will be deemed a waiver of such rights
nor will waiver by the Company of any default by Customer be deemed a waiver
of any other or subsequent default.
The Customer will indemnify and save the Company harmless from all loss
on account of injury, or damage to persons or property on the Customer's
premises, and at and from the point of delivery of power if such point is
located off the Customer's premises, growing out of any accident or mishap.
This agreement may be assigned by the Customer only with the written
consent of the Company. This contract will bind and benefit the successors
and assigns of the Company, and, at the option of the Company, the
successors and assigns of the Customer. This contract supersedes all prior
agreements between the Customer and the Company for the service specified
herein.
In witness whereof, the parties hereto have caused this contract to be
executed on (X) September 30, 1996.
Lone Star Steel Company
---------------------------------------------------------
Customer
Witness (X) ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ By (X) ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------------ -------------------------------------------------------
(For the Customer)
(X) Vice President, Engineering & Services
---------------------------------------------------------
Official Capacity
SOUTHWESTERN ELECTRIC POWER COMPANY
Witness ▇▇▇▇▇▇ ▇▇▇▇▇▇ By ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------------ -------------------------------------------------------
(For the Company)
1. See Attachment, Article VII
2. At any time during its term, this /X/ President / / Vice President / / Division Manager
Agreement may be ---------------------------------------------------------
3. Twenty-Four Months Official Capacity
4. See Attachment, Article I.
STANDARD TERMS AND CONDITIONS
--------------------------------------------------------------------------------
1. APPLICABLE TO ALL CLASSES OF ELECTRIC SERVICE
-------------------------------------------------
In order that all Customers may receive uniform, efficient, and
adequate service, electric service will be supplied to and accepted
by all Customers receiving service from the Company in accordance
with these Terms and Conditions.
2. ORDER FOR SERVICE
---------------------
Contract and Agreement For Electric Service Form CA-101 and other
applicable Contract For Electric Service forms are provided by the
Company to show the agreement under which the Customer receives and
the Company delivers electric service. Appropriate arrangements
will be completed with Customer, or his duly-authorized agent,
before service is supplied by the Company. A separate contract will
be in effect for each class of service at each separate location.
Refusal of service by the Company is governed by the Company's
Service Refusal Policy, Sheet No. 101.
3. OPTIONAL RATES
------------------
The Company's published rate schedules state the conditions under
which each is available for electric service. When two or more
rates are applicable to a certain class of service, the choice of
such rates lies with the Customer.
The Company, at any time upon request, will determine for any
Customer the rate best adapted to existing or anticipated service
requirements as defined by the Customer, but the Company does not
assume responsibility for the selection of such rate or for the
continuance of the lowest annual cost under the rate selected.
The Company, lacking knowledge of changes that may occur at any
time in the Customer's operating conditions, does not assume
responsibility that Customer will be served under the most
favorable rate; nor will the Company make refunds covering the
difference between the charges under the rate in effect and those
under any other rate applicable to the same service.
Rates are normally established on a twelve-month basis and a
Customer having selected a rate adapted to his service may not
change to another rate within a twelve-month period unless there is
a substantial change in the character or conditions of his service.
A new Customer will be given reasonable opportunity to determine
his service requirements before definitely selecting the most
favorable rate therefor.
4. DEPOSIT
-----------
The Customer, if requested by the Company to do so, will make and
maintain a reasonable deposit to secure payment of bills. Rules and
regulations governing the requirement for and refundability of
deposits are contained in the Company's Deposit Policy, Sheet
No. 102.
5. MONTHLY BILLS
-----------------
Bills for service will be rendered monthly, unless otherwise
specified. The term "month" for billing purposes will mean the
period between any two consecutive readings of the meters by the
Company, such readings to be taken as nearly as practicable every
thirty days.
Failure to receive a ▇▇▇▇ in no way exempts Customers from payment
for electric service.
When there is good reason for doing so, estimated bills may be
submitted provided that an actual meter reading is taken every six
(6) months. In months when the meter reader is unable to gain
access to the premises to read the meter on regular meter-reading
trips, or in months when meters are not read, Company will provide
the Customer with a postcard and request the Customer to read the
meter and return the card to Company. If such postcard is not
received by Company in time for billing, Company may estimate meter
reading and render bill accordingly.
When a ▇▇▇▇ rendered to a Commercial or Industrial Customer is paid after
the due date, a one-time penalty in an amount set forth in the applicable rate
schedule will be added to the amount owed the Company.
6. DISCONTINUANCE OF SERVICE
-----------------------------
A customer's utility service may be disconnected and the Company's
property removed from the Customer's premises if the ▇▇▇▇ has not been paid by
the due date and proper notice has been given in accordance with the Company's
Collection and Disconnect Policy, Sheet No. 103. No such suspension of
electric service will interfere with the enforcement by the Company of any
other legal right or remedy nor relieve the Customer from liability to pay the
minimum charge during any suspension. No delay by the Company in enforcing any
of its rights will be deemed a waiver of such rights nor will waiver by the
Company of any default by the Customer be deemed a waiver of any other
subsequent default.
7. EXCLUSIVE SERVICE ON INSTALLATION CONNECTED TO
--------------------------------------------------
COMPANY'S SYSTEM
----------------
Except as may be specifically permitted under tariffs governing the
interconnection or provision of service to small power producers or
cogenerators, standard electric rate schedules are based on exclusive use of
Company's service.
Except in cases where the Customer has a contract with the Company for
breakdown or standby service, no other electric light or power service will
be used by the Customer on the same installation in conjunction with the
Company's service, either by means of a throw-over switch or any other
connection.
The Company will not be required to supply or continue to supply service
to any Customer where a portion of Customer's service requirement is obtained
from other sources, except when such service is covered by a contract under
Standby Service Schedule (S).
The Customer will not sell the electricity purchased from the Company to
any other customer, company, or person, and Customer will not deliver
electricity purchased from the Company to any connection wherein said
electricity is to be used off of the Customer's premises on which the meter
is located.
8. CUSTOMER'S INSTALLATION
---------------------------
Customer is responsible for installing and maintaining such protective
devices as are recommended or required by the then current edition of the
National Electrical Code or as may be necessary to protect Customer's
equipment or process during abnormal service conditions or the failure of all
or a part of the electric service provided by the Company. All wiring and
other electrical equipment furnished by the Customer will be installed,
operated, and maintained by the Customer at all times in conformity with good
electrical practice and with the requirements of the constituted authorities
and these Terms and Conditions. Where no public authorities have jurisdiction,
Company, for Customer's protection, may require Customer to furnish Company a
certificate from wiring electrician that Customer's installation conforms to
the National Electrical Code and/or the National Electrical Safety Code. The
Company does not assume responsibility for the design, operation, or condition
of the Customer's installation.
Service will be delivered to Customer for each premise at one point of
delivery to be designated by Company and to conform to Company's service
standards. For mutual protection of Customer and Company, only authorized
employees of Company are permitted to make and energize the connection between
Company's service wire and Customer's service entrance conductors. The
Customer will indemnify and save the Company harmless from all loss on account
of injury or damage to persons or property on the Customer's premises, and at
and from the point of delivery of power if such point is located off the
Customer's premises, growing out of any accident or mishap.
9. OWNER'S CONSENT TO OCCUPY
-----------------------------
The Company shall have the right to install and maintain equipment in,
over and under the Customer's property and shall have access to the Customer's
premises for any other purpose necessary for supplying electric service to the
Customer. In case the Customer is not the owner of the premises or of the
intervening property between the premises and the Company's lines, the
Customer will obtain from the property owner or owners the easements or
right-of-way necessary to install and maintain in, over or under said premises
all such wires and electrical equipment as are necessary or convenient for
supplying electric service to the Customer.
10. MOTOR INSTALLATIONS
------------------------
For mutual protection of service to all customers, all motor
installations will be as follows:
(a) All motors rated in horsepower up to and including 7-1/2 HP and
individual air conditioning units with ratings of 65,000 BTUH (ARI rating) or
less will be single phase, unless otherwise agreed to by the Company or served
in conjunction with other larger three phase loads.
(b) All three phase motors will be equipped with approved starting
equipment having low voltage release attachment and properly sized
over-current protection in each of the three phases.
11. POWER FACTOR
-----------------
Where Customer has power or heating equipment installed that operates at
low power factor, Customer will furnish, at his own expense, suitable
corrective equipment to maintain a power factor of 90% lagging, or higher.
Customer will install and maintain in conjunction with any fluorescent
lighting, neon lighting, or other lighting equipment having similar load
characteristics, auxiliary or other corrective apparatus that will correct the
power factor of such lighting equipment to not less than 90% lagging.
12. PROTECTION OF SERVICE
--------------------------
Where the Customer's use of any devices that have a detrimental effect
upon the service rendered to other Customers or upon Company equipment and
causes voltage fluctuation of the 60 Hertz wave, clipping of the current, or
voltage wave - thereby producing harmonics or a cyclic pulsation between one
and sixty Hertz (1 and 60 Hertz), Customer will furnish at his own expense
necessary equipment to limit such voltage fluctuation, harmonics, or
pulsations so that they will not interfere with other Customers or Company
equipment. Where the interference cannot be corrected, the use of such
devices must be discontinued.
13. CONTINUOUS SERVICE
-----------------------
Company will make reasonable provisions to insure satisfactory and
continuous service, but does not guarantee a continuous supply of electric
energy or that the voltage, wave form or frequency of the supply will not
fluctuate. The Company shall not be liable for damages occasioned by
interruption, failure to commence delivery, or voltage, wave form or frequency
fluctuation caused by interruption or failure of service or delay in
commencing service due to accident to or breakdown of plant, lines, or
equipment, strike, riot, act of God, order of any court or judge granted in
any bonafide adverse legal proceedings or action or any order of any
commission or tribunal having jurisdiction; or, without limitation by the
preceding enumeration, any other act or things due to causes beyond its
control, to the negligence of the Company, its employees, or contractors,
except to the extent that the damages are occasioned by the gross negligence
or willful misconduct of the Company.
In like manner, should the Customer's premises be rendered wholly unfit
for the continued operation of the Customer's plant or business, due to any of
the causes mentioned above, the Customer's contract, if any, will thereupon be
suspended until such time as the plant or premises will have been
reconstructed, reconditioned, and reoccupied by the Customer for the purpose of
his business.
14. INTENTIONAL INTERRUPTION OF SERVICE
----------------------------------------
The Company may without notice and without liability to Customer
interrupt service to Customer when in the Company's sole judgment such
interruption:
(a) Will prevent or alleviate an emergency threatening to disrupt the
operation of the Company's system; or
(b) Will lessen or remove possible danger to life or property; or
(c) Will aid in the restoration of electric service; or
(d) Is required to make necessary repairs to or changes in the Company's
facilities.
Customer may request, in writing, that Company provide notice of intentional
interruption of service by contact at an address and telephone number provided
in such written request by Customer and Company will exercise reasonable
diligence to give such notice but does not warrant that notice will be given
in every case of intentional interruption.
15. METERING
-------------
The electricity used will be measured by a meter or meters to be
furnished and installed by the Company at its expense and bills will be
calculated upon the registration of such meters. Meters include all measuring
instruments. Meter installations will be made in accordance with the service
standards set forth in the Company's Meter and Service Installations
Handbook. Customer will provide a sufficient and proper space in a clean and
safe place, accessible at all times and free from vibration, for the
installation of Company's meters. Company will furnish all meter bases
and/or metering enclosures to be installed by Customer on supply side of
service equipment to be metered.
Meters will be tested as reasonably necessary in accordance with the
Company's Meter Testing Policy, Sheet No. 104.
16. PROTECTION OF COMPANY'S PROPERTY AND ACCESS TO PREMISES
------------------------------------------------------------
The Customer will protect the Company's property on the Customer's
premises from loss or damage and will permit no one who is not an agent of
the Company to remove or tamper with the Company's property.
The Company will have the right of access to the Customer's premises at
all reasonable times for the purpose of installing, reading, inspecting, or
repairing any meters or devices owned by Company or for the purpose of
removing its property.
17. AGENTS CANNOT MODIFY AGREEMENT
-----------------------------------
No agent has power to amend, modify, or waive any of these Terms and
Conditions, or to bind the Company by making any promises or representations
not contained herein.
18. SUPERSEDE PREVIOUS TERMS AND CONDITIONS
--------------------------------------------
These Terms and Conditions supersede all Terms and Conditions under which
the Company has previously supplied electric service.
ATTACHMENT TO THE
CONTRACT FOR ELECTRIC SERVICE
BETWEEN
LONE STAR STEEL COMPANY
AND
SOUTHWESTERN ELECTRIC POWER COMPANY
This Attachment appended to and made a part of the Contract for Electric
Service (Contract) between Lone Star Steel Company ("Lone Star") and
Southwestern Electric Power Company ("SWEPCO"), dated September 30, 1996.
I. Rates
-----
Lone Star will be billed for and will pay for electric service hereunder
in accordance with Rate Schedule LSS of SWEPCO's Manual of Tariffs, as
approved from time-to-time by the Public Utility Commission of Texas
("Commission"). The current version of Rate Schedule LSS is attached to the
Contract. If the Commission revises or supersedes Rate Schedule LSS, the
attached rate schedule will be revised accordingly, and the revised or
superseded schedule will apply to service hereunder from the date it is made
effective by the Commission.
The Minimum Kilowatts of Billing Demand will be determined pursuant to
the provisions of Rate Schedule LSS. In the event Lone Star decreases its
specified Firm Load pursuant to Section I.B.1 of Rate Schedule LSS, it is
agreed that for billing purposes, such a decrease shall not reduce the amount
of Firm Load by more than 20 percent when used in allocating Kilowatts of
Billing Demand among Firm Load, Curtailable Load, and Off-Peak Load for the
subsequent 12-month period.
Lone Star may elect to take service under any other Rate Schedule or
tariff provision in SWEPCO's Manual of Tariffs, as approved from time-to-time
by the Commission, that by its terms indicates it is available to a customer
served under Rate Schedule LSS or under any Commission-approved tariff that
supersedes Rate Schedule LSS. In the event Lone Star elects to take service
under such other applicable Rate Schedule or tariff provision approved by the
Commission, the attached rate schedule will be revised as appropriate, and
the Contract modified appropriately.
II. Availability of Power
---------------------
SWEPCO currently has three sources of supply to the Lone Star South
Substation and will make reasonable effort to maintain two-way service to the
Lone Star South Substation. SWEPCO's obligation under the Contract to
provide electric power is limited to the following aggregate levels:
-------------------------------------------------------------------------------
Lone Star Lone Star
Based on SWEPCO 1997 Summer Projected Peak Load 87% 98%
Flows
Power Factor Power Factor
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-------------------------------------------------------------------------------
Normal System Conditions 200 MW 235 MW
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One Transmission Line to the Lone Star South 140 MW 160 MW
Substation Out of Service
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One Autotransformer at the ▇▇▇▇▇ Substation Out of 115 MW 115 MW
Service*
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-------------------------------------------------------------------------------
*Should one autotransformer at the ▇▇▇▇▇ Substation fail, SWEPCO will
make a reasonable effort to install a spare autotransformer within 30
days.
SWEPCO will reasonably notify Lone Star should SWEPCO's projections of
customer demands indicate that any significant changes in these limits are
expected to occur.
In the event Lone Star notifies SWEPCO that Lone Star's needs are
projected to exceed the levels set forth above, SWEPCO will consult with Lone
Star with respect to the installation of additions or modifications to
SWEPCO's system and the terms and conditions upon which such additions or
modifications will be installed. Installation of any such additions or
modifications will be contingent on: (i) receipt of all required permits and
approvals; (ii) availability of materials and rights-of-way; and (iii)
Commission approval of any compensation from Lone Star to SWEPCO for Lone
Star's reasonably apportioned share of the cost of the additions or
modifications installed. At this time, SWEPCO has no plans for construction
of additions or modifications to its system for which Lone Star would be
expected to share the cost.
To assist in SWEPCO's planning, Lone Star will provide SWEPCO a written
load forecast for a minimum of three calendar years by March 1 of each year.
Lone Star shall use its best efforts to inform SWEPCO as soon as possible of
any substantial changes in these forecasts.
III. Limitation of Amount of Curtailable Load
----------------------------------------
Due to Lone Star's and other customers' potential for load growth,
Curtailable Load shall be provided consistent with transmission system
delivery capability, including but not limited to the limitations set forth
in Section II above. The amount of Curtailable Load available will change
from time to time and shall be specified by SWEPCO. A limited amount of
Curtailable Load is available to all SWEPCO customers. Curtailable Load
available to Lone Star shall be 120,000 kilowatts subject to the following:
(1) In the event Lone Star's use of Curtailable Load does not exceed 90,000
kilowatts at any time prior to June 1, 1997, or during any three-year period
thereafter, SWEPCO shall have the right to make any Curtailable Load or
interruptible power in excess of 10,000 kilowatts over the highest prior
usage of Curtailable Load by Lone Star available to other customers; and
(2) SWEPCO shall allow the use of more Curtailable Load to the extent it
deems such allowance consistent with its system's demands and capability.
IV. Metering
--------
The kilowatt-hours associated with each type of load shall be determined
by one set of electronic metering. In the event of a failure in metering,
billing shall be estimated on the best information available or Lone Star's
metering. Metering equipment shall be tested at intervals not exceeding one
year with a representative of each party present. If as a result of such
tests the metering equipment is found to be inaccurate, it shall be restored
to a condition of accuracy. If inaccuracy is found outside of the accuracy
standards of the American National Standards Institute, Incorporated, ▇▇▇▇
adjustments will be made in accordance with the Meter Policy of SWEPCO's
Manual of Tariffs.
V. Lone Star Generating Equipment and
Interconnection with SWEPCO System
----------------------------------
Lone Star currently has 34.3 MW of generating equipment installed at the
facility served hereunder. Lone Star has installed and agrees to maintain in
good working order necessary interconnection equipment, including protective
devices and equipment, meeting SWEPCO's standards and specifications to allow
the operation of such generating equipment in parallel with
the SWEPCO system in a manner that does not adversely affect either the
reliability or safety of the SWEPCO system. Should SWEPCO's standards and
specifications be revised in the future, Lone Star agrees at its expense to
make any modifications to such interconnection equipment that may be
reasonably necessary to comply with such revised standards and specifications
to assure the continued operation of Lone Star's generating equipment in
parallel with the SWEPCO system without adversely affecting either the safety
or reliability of the SWEPCO system.
In the event Lone Star plans to make any change to such generating
equipment or to the interconnection equipment which could reasonably be
expected to affect the SWEPCO system or plans any increase in the amount of
generating capability installed, Lone Star agrees to notify SWEPCO and
provide SWEPCO with information sufficient for SWEPCO to evaluate the
potential effects on the SWEPCO system. Lone Star agrees at its expense to
install such interconnection equipment, including protective devices or
equipment, as SWEPCO reasonably specifies to ensure that any modifications to
Lone Star's equipment or increases in the capability of Lone Star's
generation do not adversely affect either the safety or reliability of the
SWEPCO system.
Lone Star's generating equipment may be utilized by Lone Star for
purposes of supplying part of its total electric capacity and energy needs.
Because Rate Schedule LSS is a special tariff applicable to Lone Star alone
and provides for breakdown and standby service, the provisions of Section 7
of SWEPCO's Standard Terms and Conditions do not affect Lone Star's ability
to use its installed generation to supply part of its total electric capacity
and energy needs and the reference in such Section 7 to Rate Schedule (S)
Standby Service does not apply to service to Lone Star.
VI. Motor Installation
------------------
In accordance with Section 10 of SWEPCO's Standard Terms and Conditions
as approved by the Commission, SWEPCO recognizes that Lone Star has installed
some three-phase motors that are rated less than 7.5 HP.
VII. Term of Contract and Effective Date
-----------------------------------
The Contract will be filed with the Commission. The Contract will be in
effect for ten years beginning on the later of (i) October 1, 1996, or (ii)
should the Commission deem approval of the Contract to be necessary, the date
of the earlier of interim or permanent approval by the Commission. After the
initial ten year term, the Contract shall continue in effect in automatically
recurring yearly periods. During its term, the contract can be terminated by
either party by written notice given to the other not less than twenty-four
months prior to the termination date designated in such notice.
VIII. Notices
-------
Statements or notices under the Contract shall be mailed to Vice
President-Engineering and Services, Lone Star Steel Company, Lone Star, Texas
75668, and to President, Southwestern Electric Power Company, ▇.▇. ▇▇▇ ▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
SOUTHWESTERN ELECTRIC POWER COMPANY
SECTION TITLE RATES, CHARGES, AND FEES
----------------------------------------------------------------
SECTION NUMBER 4.04 EFFECTIVE DATE 08/01/85
----------------------------- -------------
APPLICABLE LONE STAR STEEL COMPANY ORIGINAL REVISION NUMBER 4
--------------------------------- ---
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CONTRACT WITH LONE STAR STEEL COMPANY (LSS)
-----------------------------------------------------------------------------
AVAILABILITY
------------
This rate is available to Lone Star Steel Company for service provided under
a contract specifying the limits and conditions of service as a rate that is
subject to change by the regulatory authority having jurisdiction during the
course of any rate proceeding.
I. BASIC RATES FOR ELECTRIC SERVICE
A. Rate Determination
------------------
1. Firm Load:
Kilowatt Charge:
----------------
$4.62 per Kilowatt for the Firm Load Kilowatts of Billing Demand.
Kilowatt-hour Charge:
---------------------
0.48c per Kilowatt-hour for all Firm Load Kilowatt-hours with
Kilowatt-hours from metered data for usage levels up to the Firm
Load Kilowatts of Billing Demand.
2. Rates for Turbine-Generator Overhaul and Emergency Power are
applicable only when this type of power is used with kilowatt-
hours from metered data for the usage levels specified. Turbine
Generator overhaul kilowatt-hours will be at the firm load rate.
Emergency Power kilowatt-hours will be at the Power Emergency rate.
3. Curtailable Load:
Kilowatt Charge:
----------------
$3.46 per Kilowatt for the Curtailable Load Kilowatts of Billing
Demand.
Kilowatt-hour Charge:
---------------------
0.42c per Kilowatt-hour with the kilowatt-hours metered for
usage between the Firm Load Kilowatts of Billing Demand and the
Curtailable Load Kilowatts of Billing Demand.
4. Off-Peak Load:
KILOWATT CHARGE:
$2.31 per Kilowatt for the Off-Peak Kilowatts of Billing Demand.
Kilowatt-hour Charge:
---------------------
0.42c per Kilowatt-hour with the kilowatt-hours metered for
usage between the Curtailable Load Kilowatts of Billing Demand and
the Off-Peak Kilowatts of Billing Demand.
B. Determination of Kilowatts of Billing Demand: The Kilowatts of
Billing Demand for each month will be the average kilowatt load used
by the Customer during the 30-minute period of maximum use comprised
of two consecutive 15-minute periods (with each clock hour being
divided into quarter hours) during the on-peak and off-peak hours of
the month and will be determined in the following manner and sequence:
1. Firm Load Kilowatts of Billing Demand: will be specified from
time to time by Customer within the contract constraints. Any
change in Firm Load requires at least 72 hours prior notice to
Company with written confirmation being sent within 24 hours of
such notice. An increase will be effective for the entire month
in which requested to be effective and a decrease will be
effective after the end of such month.
2. Turbine-Generator Overhaul Kilowatts of Billing Demand: will be
specified in advance by Customer and shall be considered as Firm
Load Kilowatts of Billing Demand during the agreed upon period and
shall not be used in the Determination of Minimum Kilowatts of
Billing Demand.
3. Emergency Power Kilowatts of Billing Demand: will be specified, at
the beginning of Emergency Power use by Customer with written
confirmation within 24 hours. Customer will notify Company when the
emergency has been completed with written confirmation within 24
hours. Emergency Power Kilowatts of Billing Demand as specified
will be in addition to the Firm Load Kilowatts of Billing Demand
but will be considered as Firm Load Kilowatts of Billing Demand in
determining Curtailable and off-peak Kilowatts of Billing Demand.
Emergency Power Kilowatts of Billing Demand shall not be used in the
Determination of Minimum Kilowatts of Billing Demand.
4. Curtailable Load Kilowatts of Billing Demand: will be the on-peak
hours determination of Kilowatts of Billing Demand less the Firm Load
Kilowatts of Billing Demand.
5. Off-Peak Kilowatts of Billing Demand: will be the off-peak hours
determination of Kilowatts of Billing Demand less the on-peak hours
determination of Kilowatts of Billing Demand and shall not be used
in the Determination of Minimum Kilowatts of Billing Demand.
C. Monthly Kilowatt Charge: The monthly kilowatt charge will be the charge
for the Kilowatts of Billing Demand for the current month or the Minimum
Kilowatts of Billing Demand, whichever is greater as determined in the
following manner and sequence:
1. Firm load kilowatts of billing demand at the firm load rate, plus
2. Turbine-Generator or Emergency Power Kilowatts of Billing Demand
are applicable only when the power is utilized (not to be used in
Minimum Kilowatts of Billing Demand), plus
3. Curtailable load kilowatts of billing demand at the rate for
curtailable load, plus
4. Off-Peak Load Kilowatts of Billing Demand at the rate for off-peak
load (not to be used in Minimum Kilowatts of Billing Demand).
D. Firm Load - Demand and energy used regularly on an as needed basis not
subject to normal interruption for load management by Company.
E. Curtailable Load - Demand and energy used in addition to firm load used
regularly on an as needed basis within limits of the contract but subject
to interruption for up to 30 times during the curtailable year for a total
of 150 hours. Curtailable load will be subject to immediate interruption
for emergency system conditions in addition to the above.
F. Curtailable Year - Beginning June 1 and Ending May 31 of the following
year.
G. Interruption Procedure for Curtailable Load: The interruption procedure
will be in the following order:
1. Company's system dispatcher will request Customer's designated
representative(s) to reduce load to an amount that is not less than
firm load amount. Company will attempt to provide at least 30
minutes notice but will provide not less than a minimum of 15 minutes
notice to Customer to reduce its load to the requested load amount.
Interruptions for emergency system conditions as noted previously
shall be subject to immediate interruption.
2. If Customer's demand exceeds the predetermined level after actions
in step 1 of the interruption procedure, Company shall interrupt
total plant service.
H. Off-Peak Load - Demand and energy used in addition to firm or
curtailable load only during the off-peak hours subject to the following
limitations. The average kilowatt load during the off-peak hours will
not exceed the on-peak demand by more than 50,000 kilowatts; provided
however, the off-peak demand shall not exceed the on-peak demand by more
than 30,000 kilowatts during the hours from 6:00 A.M. to 7:30 A.M. in the
months of October, November, December, January, February, March and April.
The Off-Peak Demand limitation of 30,000 kilowatts shall not apply on
Saturday or Sunday or the day of a National Holiday. Any Demand in
excess of the maximum Off-Peak Demands specified above shall be
considered as On-Peak Demands and billed accordingly. Provided further
however, Company shall have the right of normal interruption back to the
Firm Load during the hours from 3:30 P.M. to 8:00 P.M. in the months of
October through April of any calendar year and during the hours from
8:00 A.M. to 2:00 P.M. in the months of May through September of any
calendar year.
I. Off-Peak Hours and On-Peak Hours:
---------------------------------
In the months of May through September of any calendar year, the On-Peak
Hours are those hours between 2:00 P.M. and 10:00 P.M., Monday through
Friday; the Off-Peak Hours are those between 10:00 P.M. on one day to
2:00 P.M. on the following day, Monday through Thursday and 10:00 P.M.
on Friday to 2:00 P.M. the following Monday. In the months of October
through April of any calendar year, the On-Peak Hours are those hours
between 7:30 A.M. and 3:30 P.M., Monday through Friday; the Off-Peak
Hours are those between 3:30 P.M. on one day to 7:30 A.M. on the
following day, Monday through Thursday and 3:30 P.M. on Friday to
7:30 A.M. the following Monday. The On-Peak Hours of the following
National Holidays shall be considered Off-Peak Hours in this Agreement:
New Year's Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day. Should any of these days fall on Sunday, the
following Monday shall be considered a National Holiday, likewise should
any of these days fall on Saturday, the preceding Friday shall be
considered a National Holiday.
J. The combined total amount of Curtailable and Off-Peak Load will be
limited to the Curtailable Load plus 50,000 KW. Any demand during
Off-Peak Hours in excess of Curtailable Load plus 50,000 KW will be
considered Firm Load Demand.
II. Minimum Kilowatts of Billing Demand:
------------------------------------
The Minimum Kilowatts of Billing Demand will be higher of (a) the
charge for the On-Peak Demand of the current month, but not less than
the charge for 40,000 kilowatts, or (b) any contract provisions.
III. Determination of Kilovar Charge:
--------------------------------
The reactive demand in kilovars will be recorded by SWEPCO. In
each month a charge of 35 cents per month shall be made for each kilovar
by which Lone Star's maximum 30 minute reactive demand in kilovars is
greater than 50 percent of Lone Star's maximum 30 minute kilowatt demand
during the same time period in that month.
IV. Fuel Cost Component of Base Rates:
----------------------------------
In addition to all other charges, the amount of the ▇▇▇▇ will be
increased by an amount per KWH calculated in accordance with Schedule FC.
V. Tax Adjustment
--------------
Total billing will be decreased or increased by the proportionate
part of any new tax or change in rate of tax as provided in the Tax
Adjustment Rider.
VI. Turbine-Generator Overhaul
--------------------------
It is recognized that it will be necessary for the integrated
operation of the turbine-generators of LONE STAR and power service of
SWEPCO, that schedule overhaul periods on the equipment of LONE STAR
must be fitted into the similar schedules of SWEPCO as determined by
SWEPCO's Chief System Operator. During the agreed upon period of
overhaul, the Turbine-Generator Overhaul Kilowatts of Billing Demand
shall be determined in accordance with the provisions as stated in the
"Determination of Kilowatts of Billing Demand" section, except that the
Kilowatts of Billing Demand in excess of the Kilowatts of Billing Demand
established under normal operations, shall be prorated on a daily basis
during the billing periods when such overhauls are being accomplished.
The Turbine-Generator Overhaul Kilowatts of Billing Demand established
during the overhaul period shall not be used in the Minimum Kilowatts of
Minimum Billing Demand and shall only be applicable during the actual
period of overhaul.
VII. Emergency Power and Energy
--------------------------
It is recognized that emergencies may arise in operation of LONE
STAR's plant occasioned by a breakdown of the existing generating plant
of LONE STAR whereby additional power is required. Therefore, SWEPCO, on
request of LONE STAR, agrees to furnish as it has available such
emergency power and corresponding energy as may be required by LONE
STAR. In addition to normal billing, additional power and energy
furnished in an emergency shall be on the following basis:
EMERGENCY POWER AND ENERGY
--------------------------
0.23c per kilowatt-hour plus the Fuel Cost Component
Of Base Rates (Schedule FC) or 110 percent (110%) of
SWEPCO's cost of energy whichever is the greater amount
for all emergency kilowatt-hours supplied to LONE STAR
plus 19.5 CENTS per kilowatt per day for each Kilowatt
of Billing Demand established above the Firm Load
Kilowatts of Billing Demand.
The Kilowatts of Billing Demand established during periods of
emergency shall not be used in the Determination of Kilowatts of
Minimum Billing Demand and shall only be applicable during the
month(s) that the emergency power and energy is supplied.
VIII. Billing and Payments
--------------------
Bills for services furnished are rendered monthly and are
due and payable within sixteen (16) days of date of ▇▇▇▇. A sum
equivalent to 1% of the total ▇▇▇▇ will be added to LONE STAR's
total monthly ▇▇▇▇, but will be collected only in the event LONE
STAR fails to pay in full on or before the due date shown on
the ▇▇▇▇.
SOUTHWESTERN ELECTRIC POWER COMPANY
GENERAL OFFICES - SHREVEPORT, LOUISIANA
TEXAS
Approved By: Docket No. 14819 January 8, 1996
--------------------------------------------------------------------------------
FIXED FUEL FACTOR
(FUEL COST COMPONENT OF BASE RATES)
(SCHEDULE FC)
Applicable to all standard rates and all kilowatt-hours sold thereunder. For
electric service billed under applicable rate schedules for which there is no
metering, the monthly usage shall be estimated by the Company and the fuel
factors shall be applied. The following fuel factors adjusted by the
appropriate loss multiplier will be included in each rate schedule to recover
fuel costs:
Applicable Period Fixed Fuel Factor
----------------- -----------------
December, January, February $ .01800 per kilowatt-hour
March, April, May $ .01893 per kilowatt-hour
June, July, August $ .01907 per kilowatt-hour
September, October, November $ .01744 per kilowatt-hour
The cost of fuel included within the Fixed Fuel Factor is comprised of the
following items:
1. Cost of fuel consumed in Company's generating plants, plus
2. Cost of purchased economy energy and power and energy purchased from
small power production and cogeneration facilities, plus
3. Cost of other purchased energy (excluding capacity charges), plus
4. Cost of small power production and cogeneration, wheeling and other costs
associated with generated or purchased power as approved by the Public
Utility Commission of Texas, less
5. Cost of energy (excluding capacity charges) sold outside the retail
jurisdictional system.
The cost of fuel consumed in the Company's generating plants shall include
only these items includible in FERC Accounts 501 and 547 less those costs
determined in Docket No. 5301 to be nonrecoverable and/or nonreconcilable
through the Fixed Fuel Factor.
11.01
SOUTHWESTERN ELECTRIC POWER COMPANY
GENERAL OFFICES - SHREVEPORT, LOUISIANA
TEXAS
Continuation of Schedule
--------------------------------------------------------------------------------
FIXED FUEL FACTOR
(FUEL COST COMPONENT OF BASE RATES)
(SCHEDULE FC) (Continued)
The Fixed Fuel Factor for the applicable period will be adjusted by the
appropriate loss multiplier to account for differences in line losses
corresponding to the voltage level of service. The line loss multipliers are
as follows:
Transmission
138 KV .95407
69 KV .96427
Substation * .97075
Primary .98144
Secondary 1.01638
* Applicable to Primary Service supplied from the substation bus for
customers served on the LLP rate schedule.
The Company will maintain up-to-date monthly and cumulative records of fuel
costs, fuel revenues and the difference between them. When permitted in
accordance with Public Utility Commission of Texas Substantive Rule
23.23(b)(2), Rate Design, the Company will reconcile any cumulative over- or
under-recovery of fuel cost and will either credit or surcharge, whichever
is appropriate, the over- or under-recovered fuel costs with interest at the
rate established by the Commission for overbilling and underbilling.
The Fixed Fuel Factor is subject to change by the Commission in accordance
with Substantive Rule 23.23 (b)(2), Rate Design.
11.01 A