EX-10.(L) 18 dex10l.txt SERVICE AGREEMENT # 101 Exhibit 10(L) SIERRA PACIFIC RESOURCES OPERATING COMPANIES FERC ELECTRIC TARIFF, FIRST REVISED VOLUME NO. 1 SERVICE AGREEMENT NO. 101 Effective: July 1, 2001 Sierra Pacific Resources Operating Companies FERC Electric Tariff First Revised Volume No. 1 Service Agreement No. 101 Open Access Transmission Tariff --- -------------------------------------------------------------------------------- Page 1 of 4 Service Agreement For Long-Term Firm Point-To-Point Transmission Service 1.0 This Service Agreement, dated as of August 1, 2001, is entered into, -------------- by and between Sierra Pacific Power Company and/or Nevada Power Company as appropriate ("Transmission Provider"), and Reliant Energy Services, Inc. (Reliant - Arrow Canyon) ("Transmission Customer"). 2.0 The Transmission Customer has been determined by the Transmission Provider to have a Completed Application for Firm Point-To-Point Transmission Service under the Tariff. 3.0 The Transmission Customer has provided to the Transmission Provider an Application deposit in accordance with the provisions of Section 17.3 of the Tariff. 4.0 Service under this agreement shall commence on the later of (1) the requested service commencement date, or (2) the date on which construction of any Direct Assignment Facilities and/or Network Upgrades are completed, or (3) such other date as it is permitted to become effective by the Commission. Service under this agreement shall terminate on the actual termination date or such date as mutually agreed upon by the parties. 5.0 Transmission Customer understands that Transmission Provider is experiencing high load growth and that Transmission Provider's obligation to serve Native Load Customers is projected to increase significantly in the future. For this reason, Transmission Customer understands that there may not be sufficient transmission capacity for Transmission Provider to continue to serve Transmission Customer at the expiration of the term of this Agreement. Accordingly, notwithstanding Section 2.2 of the Transmission Provider's Tariff, Transmission Customer's right to renew this Agreement at the expiration of the initial term is subject to a determination that there is adequate transmission capacity to continue to serve Transmission Customer in addition to Native Load Customers and other customers with a higher priority to transmission capacity. If adequate capacity is not available, Transmission Customer's right to renew this Agreement is subject to Sections 19-21 of the Transmission Provider's Tariff and also is subject to Transmission Customer's agreement to pay any costs of Network Upgrades that Transmission Provider is authorized to charge to Transmission Customer in accordance with Commission policy. 6.0 The Transmission Provider agrees to provide and the Transmission Customer agrees to take and pay for Firm Point-To-Point Transmission Service in accordance with the provisions of Part II of the Tariff and this Service Agreement. 7.0 Any notice or request made to or by either Party regarding this Service Agreement shall be made to the representative of the other Party as indicated below. -------------------------------------------------------------------------------- Sierra Pacific Resources Operating Companies FERC Electric Tariff First Revised Volume No. 1 Service Agreement No. Open Access Transmission Tariff ---- -------------------------------------------------------------------------------- Page 2 of 4 8.0 If any event occurs that will materially affect the time for completion of new facilities or the ability to complete them, Transmission Provider shall promptly notify the Transmission Customer. A technical meeting between the Parties shall be held to evaluate the alternatives available. If the Transmission Provider and the Transmission Customer mutually agree that no other reasonable alternatives exist and the requested service cannot be provided out of existing capability under the conditions of Part II of the Tariff, the obligation to provide the requested Firm Point-To-Point Transmission Service shall terminate and any deposit made by the Transmission Customer shall be returned with interest pursuant to Commission regulations 35.19a(a)(2)(iii). However, the Transmission Customer shall be responsible for all prudently incurred costs by the Transmission Provider through the time construction was suspended. Transmission Provider: ---------------------- Executive Director, Transmission Services Sierra Pacific Power Company P.O. Box 10100 Reno, Nevada 89520 and/or Director, Regional Transmission Nevada Power Company P.O. Box 230 Las Vegas, NV 89151 Transmission Customer: ---------------------- West Trading Group - Transmission Reliant Energy Services, Inc. P.O. Box 4455 Houston, TX 77210-4455 9.0 The Tariff is incorporated herein and made a part hereof. IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by their respective authorized officials. Transmission Provider: ---------------------- By: ------------------------ ----------------- -------------------------- Name Title Date Transmission Customer: --------------------- By: ------------------------ ----------------- ------------------------- Name Title Date -------------------------------------------------------------------------------- Sierra Pacific Resources Operating Companies FERC Electric Tariff First Revised Volume No. 1 Service Agreement No. Open Access Transmission Tariff ---- -------------------------------------------------------------------------------- Page 3 of 4 Specifications For Long-Term Firm Point-To-Point ------------------------------------------------ Transmission Service -------------------- 1.0 Term of Transaction: 5 Year(s) --------- Start Date: 07-31-03 -------- Termination Date: 07-30-08 -------- 2.0 Description of capacity and energy to be transmitted by Transmission Provider including the electric Control Area in which the transaction originates. 500 MW from Harry Allen 500 kV Substation in Nevada Power Company's Control Area to Mead 230 kV Substation using the Contract Path Harry Allen 500 kV - NW 230 kV - NVP Uncongested Grid - Mead 230 kV. 3.0 Point of Receipt Delivering Party Harry Allen 500 kV Substation Reliant Energy Services, Inc. 4.0 Point of Delivery Receiving Party Mead 230 kV Substation Reliant Energy Services, Inc. 5.0 Maximum amount of capacity and energy to be transmitted (Reserved Capacity): 500 MW ------ 6.0 Designation of party(ies) subject to reciprocal service obligation: None ---- 7.0 Name(s) of any Intervening Systems providing transmission service: None ---- -------------------------------------------------------------------------------- Sierra Pacific Resources Operating Companies FERC Electric Tariff First Revised Volume No. 1 Service Agreement No. Open Access Transmission Tariff ---- -------------------------------------------------------------------------------- Page 4 of 4 8.0 Service under this Agreement may be subject to some combination of the charges detailed below. (The appropriate charges for individual transactions will be determined in accordance with the terms and conditions of the Tariff.) 8.1 Transmission Charge: $1.21/kW-mo. ------------ 8.2 System Impact and/or Facilities Study Charge(s): Pending finalization, --------------------- $30,000 deposit in place. Reliant - Arrow Canyon will be responsible ---------------------------------------------------------------------- for the final actual costs. --------------------------- 8.3 Direct Assignment Facilities Charge: None under this TSA. However, --------------------------------- Direct Assignment Facilities will be required to provide the ---------------------------------------------------------------------- associated interconnection and are defined in the Interconnection & --------------------------------------------------------------------- Operation Agreement ------------------- 8.4 Ancillary Services Charges: As negotiated in the future or as defined ------------------------------------------ in Interconnection and Operation Agreement. ------------------------------------------ 8.5. Power Factor Requirements: As defined in Interconnection and Operation ------------------------------------------- Agreement. ---------- --------------------------------------------------------------------------------