1992 AGN OCT 06 I24 - Laserfiche WebLink

Browse Search

CITY OF COLTON AGENDA REPORT For Council Meeting of October 6, 1992 TO: Honorable Mayor and City Council FROM: Gale A. Drews, Electric Utility Director 4 SUBJECT: AMENUNWr NO. 2 TO THE POWER SANS AGREEMENT Date: 9/24/92 HMCEN THE CITY OF AZUSA, CITY OF BANNING, CITY OF ODLTON, AND THE CITY OF PASADENA BACKGROUND: The City of Colton has been purchasing Capacity from Pasadena since the approval of the contract on November 30, 1988. The original contract terminates on December 31, 1992. After negotiations with Pasadena, the parties to the PSA have agreed to the following conditions: (1) Term: The contract can be terminated upon 48 months written notice, with the exception that termination cannot occur before December 31, 2002. FINANCIAL IMPACT: (2) Cost: The original contract price for capacity was $5.50 per kilowatt month for 18 megawatts or $99,000. The new amendment price is $5.00 per kilowatt month for 18 megawatts or $90,000, a savings of $9,000 per month for the next 18 months. During the remainder of the contract the cost will be adjusted on an annual basis according the Gross National Product Implicit Price Deflator ("IPD"). This contract, when compared to the Re -Sale rate of Southern California Edison equates to an annual savings for capacity charges in excess of $1.5 million. RECOMMENDATION: Due to the more favorable terms and conditions of the agreement, staff recommends approval of Amendment No. 2 to the PSA and that the contract be executed bWthe ager.City Manager's Concurrence:L` Mark Lewis A copy of the agreement is on file in the City Clerk's office for your review. Attachments: Page 1 of 1 Item No. .2 4/1