1994 AGN AUG 16 I14 - Laserfiche WebLink

Browse Search

The Cities of Anaheim, Azusa, Banning, Colton and Riverside Page 2 of 7 Section II -- Binding Contract Each of the Parties is relying on the performance of the other Parties and intends that this Letter Agreement constitute a binding commitment upon each of them with respect to the obligations and rights set forth in this Letter Agreement during its term. Section III -- Good Faith Negotiations The Parties agree to negotiate the further agreements contemplated in Section V herein in good faith. Section IV -- Surrender of the FERC Preliminary Permit by the Cities The Cities agree to seek surrender of the preliminary permit for the Project which was issued to the Cities by FERC in Project No. 11261. The Cities also agree to support the issuance of any permit, license or authorization, including any regulatory or contractual authorization necessary or relevant to the development of the Project by EVMWD during the term of this Letter Agreement. The Cities shall have the right to intervene either jointly or individually in any proceeding involving the issuance of a permit, license or other authorization necessary or relevant to the development of the Project by EVMWD, or its successor, in order to protect their interests. By entering into this Letter Agreement, the Cities are not, collectively or individually, agreeing to commit, or representing that they are committing, financial resources to EVMWD to develop the Project. Section V - - Power Sales Agreement In consideration for the Cities' agreement to seek withdrawal of their preliminary permit and agreement to support the development of the Project by EVMWD, EVMWD agrees: A. To begin upon completion of the economic, environmental, engineering and other studies performed during the term of a preliminary permit obtained by EVMWD negotiations for a 30 -year term power sales agreement (the "PSA") under which EVMWD will sell to the Cities, collectively or individually, up to a total of 75 megawatts ("MW") of capacity and provide associated peaking energy of at least 6 megawatt -hours per MW each week