2004 AGN JUL 06 I20 - Laserfiche WebLink

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ELECTRIC SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE CITY OF COLTON Upon execution of this Electric Service Agreement ("Agreement") between the City of Colton ("City") and the City of San Bernardino ("San Bernardino") the parties agree, covet, and proclaim: WHEREAS, San Bernardino is an electric customer of the City and has established electric service in accordance with the City's adopted rules and regulations as established in the Customer Service Policy; and, WHEREAS, San Bernardino is contemplating expansion of production capability at the Rapid Injection/Extraction Facility (RIX) within the City and has indicated that the new facilities will add to the existing consumption of electric power; and, WHEREAS, City is a municipal corporation located in the County of San Bernardino and organized under the general laws of the State of California; and, WHEREAS, City owns and operates a municipal electric utility providing the electric needs for residential, commercial, and industrial customers located within the City limits; and, WHEREAS, City has created a rate schedule, Rate Schedule CS, which allows customers with peak demands in excess of 150 kiloWatts to negotiate electric rates reflective of their particular electric service requirements; and, WHEREAS, San Bernardino qualifies for the negotiated rate and has requested such in writing to the City; and, WHEREAS, City and San Bernardino agree that it is in the best interest for the parties to execute this Agreement. NOW THEREFORE, San Bernardino and City agree to the following terms and conditions: 1. TERM A. The term of these rates shall be for a period of twenty-five (25) years from the initial billing period. The negotiated rate shall be applied during the first available billing period (month) following customer execution of this Agreement and shall not be effective for more than two hundred and ninety-nine (299) successive billing periods. No pro -ration of any billing period subsequent to the execution of this agreement shall be allowed. 2. RATE A. In exchange for the negotiated energy rate, San Bernardino will agree to pay a one-time charge of $1,194,200 to City. This charge shall serve as a proxy equity buy -in at the Agua Mansa Power Plant owned and operated by the City. The payment shall be deemed as an ownership interest in the facility and entitle San Bernardino to a pro -rata share of the capacity and energy at the Agua Mansa Power Plant based on its share and San Bernardino's desire to contract for one and one-half (1.4) megawatts.