final hoover power marketing, post-1987 (red...

FINAL

HOOVER POWER MARKETING

POST - 1987

June 7, 1985

ARIZONA POWER AUTHORITY

1810 WEST ADAMS STREET

PHOENIX, ARIZONA 85007

INTRODUCTION, SUMMARY AND SCHEDULE

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

ALLOCATION PRINCIPLES & METHOD

Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Schedule B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

ELIGIBILITY FOR ALLOCATION

Preference Qualifications &Requirements of A.R.S. Title 30 and Title 45 Eligibility for Allocation of Schedule A Power . . . . . . 13

Eligibility for Allocation of Schedule B Power . . . . . . . . . . . . 14 Non Tax-Exempt Entities . . . . . . . . . . . . . . . . . . . . . . . 15

DISCUSSICN OF PUBLIC COMMENTS. Possible Delay of Hoover Allocation and Contract Completion Dates . . . . . . . . . . . . . . . . . . . . . . 16 Hoover Schedule A and Renewal of Existing Hoover Allocations . . . . . 17 Hoover Schedule B and CAWCD. . . . . . . . . . . . . . . . . . . . . . 17

Consideration in Allocating Hoover Schedules A & B Power . . . . . . . 19 Allocation to City of Page . . . . . . . . . . . . . . . . . . . . . . 22 Term of Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Considerations Under Recapture Conditions . . . . . . . . . . . . . . 18 Allocation of Schedules A & B Energy . . . . . . . . . . . . . . . . , 21

Customer's Contract Subject to Western Area Power ministration Contracts . . . . . . . . . . . . . . . . . . . . . . 24 Power Purchase Certificate . . . . . . . . . . . . . . . . . . . . . . 24 Opinion Letters of Legal Counsel; Resolution . . . . . . . . . . . . . 25 Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Facilities of Others . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Power Excess to Needs of Purchaser . . . . . . . . . . . . . . . . . . 26 Failure to Contract . . . . . . . . . . . . . . . . . . . . . . . . . 27 Allocation at Transmission Delivery Points . . . . . . . . . . . . . . 2 7 Hoover Uprating Program . . . . . . . . . . . . . . . . . . . . . . . 27

INTRODUCTION, SUMMARY AND SCHEDULE

Introduction

According to the Boulder Canyon Project Act, a portion of the power

output of the Federal Hoover Dam hydroelectric facility was allotted to Arizona

in its "sovereign capacity". The Arizona Power Authority ("Authority") is

the entity in Arizona established to receive and market Arizona's allotted

share of Hoover power. The Authority has been marketing Hoover power in

Arizona since 1952.

The present contract under which the Western Area Power Administration

sells Hoover power to the Authority expires on May 31, 1987.

The contracts under which the Authority sells Hoover power to its customers

also expire on May 31, 1987 .

The Authority has developed the final Hoover Power Marketing Plan

("Plan")contained herein, through a public process. The Authority began

that public process on September 1 4 , 1984, with

A Public Comment Forum was held on November 1 were solicited and received by the Authority.

a Public Information Forum.

1, 1984. Written comments

On January 11, 1985, 52

interested entities submitted Applications for amounts of either or both of

Hoover Schedule A and Schedule B power. These entities also submitted

Profile Data information requested by the Authority.

On March 2 9 , 1985, the Authority issued its Proposed Hoover Power

Marketing Plan. A second Public Comment Forum was held on April 26 , 1985,

and written comments were again solicited and received by the Authority to

A summary of the written comments received was included in the Authority's 1

Proposed Hoover Power Marketing Plan, dated March 29, 1985.

gather public input concerning the Authority's Proposed Hoover Power

Marketing Plan. 2

Summary

The Plan presented herein serves as the principles and guidelines for

the marketing of Hoover Schedule A and Schedule B power by the Authority.

This Plan provides:

1. Under the Plan, Districts with existing Hoover contracts with the

Authority will receive existing kilowatt (kW) contract amounts from

Schedule A .

2 . The remaining Schedule A contingent capacity (approximately 30,000

kW) wil l be allocated among those Districts which do not have existing

Hoover contracts with the Authority.

3 . The available Schedule A energy will be allocated among all Districts

based upon an equal division of kilowatt-hours (kWh) per kilowatt.

4. Schedule B contingent capacity and energy will be divided between

qualified tax-exempt and non tax-exempt entities on a 75/25 percent

basis as presently specified in I. R. S . (Treasury) Regulations.

5. A s suggested in its Public Information Forum of September 1 4 , 1984,

the Authority wil l include in its power purchase contracts for Schedule B

Hoover power and energy a "recapture" provision in the following form

which will not be subject to negotiation or modification (other than

technical corrections) :

"Notwithstanding any other provision in this contract (and in addition to any other recapture rights of the Authority), the Schedule B Hoover capacity and energy is sold under this contract on a withdrawable basis; that is , the capacity and energy are subject to an absolute right of recapture by the

Table One (attached) presents a summary of the written comments received. 2

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Authority for the benefit of the Central Arizona Water Conservation District at any time or times during the term of this contract. The purchaser under this contract has no vested right or interest in the determination of the amount o r disposition of capacity and energy recaptured by the Authority.

In each event of recapture, the capacity and energy shall be withdrawn from all Schedule B Hoover contractors on a pro- rata basis. If the recapture provision in any contract for Schedule B power and energy shall be held invalid o r unenforceable by a final judicial decision from which no further appeal may be taken, then Schedule B power and energy shall be withdrawn on a pro-rata basis from those Schedule B power and energy contractors with which there remains a right of recapture which has not been determined by a final judicial decision to be invalid or unenforceable.

Each exercise by the Authority of its right to recapture Schedule B Hoover capacity and energy shall be accomplished as follows:

A. The Authority shall give the contractor written notice of recapture not less than twenty-four (24 ) months prior to the effective date of the recapture.

B. The Authority's notice shall identify the amount of capacity and energy which will be recaptured and the effective date of recapture.

The Authority's right to recapture shall not be affected by any claim of rights by the contractor from which the capacity and energy is recaptured, whether arising by reason of past, present or future claims."

The Authority wi l l recapture Schedule B Hoover capacity and

energy in accordance w i t h the foregoing contract provision in order to

implement a Plan adopted by the Secretary of the Interior for marketing

Navajo Surplus power and energy pursuant to Section 107(c) of the

Hoover Power Plant Act of 1984, if such adopted Plan includes:

a. Contracting for Schedule B Hoover capacity and energy by the

Central Arizona Water Conservation District (CAWCD) , and

b. Utilization and assignment of revenues from the sale and

exchange of Navajo Surplus power and energy as authorized by the

Hoover Power Plant Act of 1984, at least sufficient to make repayment

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and establish reserves for repayment of $175,000,000 (or more) of funds

advanced by CAWCD for construction of authorized features of the

Central Arizona Project.

Recapture will be accomplished by giving written nctice of

recapture of all Schedule B capacity and energy included in the Navajo

Marketing Plan and doing all other acts necessary to effect the recapture

after adoption of the Plan by the Secretary of the Interior and not later

than 90 days after the receipt by the Authority of a written request by

CAWCD to recapture such capacity and energy.

The Authority will, at the time it offers power purchase contracts

for Schedule B Hoover power and energy, offer a power purchase

contract to CAWCD stating the terms under which Schedule B Hoover

power and energy recaptured by the Authority will be sold to CAWCD.

The Authority's contract offered to CAWCD shall, to the extent

practicable and consistent with the provisions of this marketing plan,

contain the same terms and conditions as the contracts with other

Schedule B Hoover power and energy contractors; provided, however,

that the recapture provision contained in other contracts will not be

included in the CAWCD contract.

. The Authority will not give notice of recapture of Schedule B

Hoover power and energy unless (and until) the following conditions

have been met by CAWCD, nor will a recapture of Schedule B Hoover

power and energy take effect unless, at the effective date of such

recapture, the following conditions continue to be met by CAWCD:

a. CAWCD has entered into a binding power purchase contract

w i t h the Authority for the purchase of Schedule B Hoover power and

energy and CAWCD has accepted, as a part of its contract, the

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modifications, amendments and supplements required by the Authority in

its contracts wi th other Schedule B Hoover power contractors.

b. CAWCD shall have obtained (and the Authority shall cooperate

with CAWCD in seeking to obtain) written evidence from the rating

agency (or, if more than one rating agency shall have rated bonds o r

notes the Authority issued for the Hoover Uprating Project, rating

agencies) to the effect that such rating agency or agencies has reviewed

the power sales contract between the Authority and CAWCD and that, in

its or their opinion, the sale of the recaptured power and energy to

CAWCD pursuant to such power sales contract wil l result in a rating on

such bonds or notes of the Authority at least equal to the then existing

rating on such bonds or notes; provided, however, that nothing herein

contained shall prevent CAWCD from taking such actions including, but

not limited to, a letter of credit or other credit enhancement device as

may be necessary or advisable to support the CAWCD's payment obliga-

tions under the power sales contract; the Authority will cooperate wi th

CAWCD in its efforts to obtain written evidence of the opinion of such

rating agency or agencies that the sale of the recaptured power and

energy pursuant to such power sales contract will result in a rating on

such bonds or notes of the Authority at least equal to the then existing

rating on such bonds o r notes.

c . CAWCD has furnished to the Authority an opinion of a national

consulting engineering f i r m that the projected revenues of the Central

Arizona Water Conservation District can be reasonably expected to be

sufficient to fulfill its financial obligations under its power purchase

contract w i t h the Authority and such opinion is current and in place on

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the date upon which recapture of Schedule B Hoover power and energy

takes effect.

The Authority does not intend that this Hoover power marketing

Plan by the Authority should constitute an interpretation of Section

107(b) of the Hoover Power Plant Act of 1984.

6 . If included as a part of the Navajo Marketing Plan adopted by the

Secretary of the Interior, the Authority intends to allocate and sell

Schedule C energy in a manner which is consistent with such adopted

Plan.

7. The available Schedule B energy will be allocated among all

qualified entities based upon an equal division of kilowatt-hours per

kilowatt.

8. The Authority will attempt to obtain additional supplies of energy

to supplement the annual f i rm energy to be made available with either

Schedule A or Schedule B (or both) if a customer so requests.

9. Each of the Authority's customers will be responsible for carrying

the required amount of generation reserves or making appropriate

arrangements with others for such reserves. The Authority, if

requested by any customer, wil l investigate and attempt to make

appropriate arrangements to obtain these generation reserves or will

assist, when possible, any customer in making such arrangements.

1 0 . The allocations of Schedule A and Schedule B have been made at

transmission delivery points located on Western's Parker-Davis

Transmission System. These Hoover A and B allocations are subject to

adjustment, f r o m 'time to time, for changes in transmission losses f r o m

Hoover to the transmission delivery points. Table Three includes

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Schedule A and Schedule B allocations, both at Hoover generation and at

transmission delivery points.

The results of applying the Marketing Plan guidelines and principles are

summarized in attached Table Two and detailed in the attached Table Three,

In general, these results are:

Schedule A Schedule B 3

Existing Customers New Customers

Schedule

83% 17%

5 0% 50%

A schedule for developing and completing the final Marketing Plan, the

Hoover allocations and customer contracts was announced by the Authority at

the September 14, 1984 , Public Information Forum. Since that time, the

Authority, in response to requests from interested entities, delayed

publishing the Proposed Power Marketing Plan a total of 49 days to insure

that all applicants received equitable treatment and also to insure that

interested parties would not be penalized by a lack of reasonable opportunity

to comply with the Authority's marketing schedule.

The schedule for completing the remaining portions of the marketing and

contracting of Hoover Schedule A and Schedule B power and energy is:

* Filing of customer's application for purchase .of Hoover power and energy allocated herein. July 1, 1985

* Customer's financial data and opinion of legal counsel on ability to contract to be available.

* Customer contracts available for execution

October 1, 1985

October 1, 1985

3The Schedule B allocations are subject to recapture for CAWCD.

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* All applications and Power Purchase Certificates to be filed and issued by Authority to customers October 1, 1986

* Customer contracts with others for wheeling and delivery of Authority power (if required) October 1, 1986

The Authority will cooperate with and furnish necessary information to

assist the customers in meeting the dates for the above activities in a timely

manner.

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ALLOCATION PRINCIPLES & METHOD

1. Schedule A

The Authority was guided by comments received during the public

process and by its own Regulations in arriving at a fair allocation of the

Schedule A resource. The Authority believes that renewal of existing

contract kilowatt amounts and an allocation of the remaining Hoover Schedule

A power among those districts without existing Authority contracts will

provide a fair and equitable distribution of the Schedule A resource based

upon the following set of allocation principles and the allocation method

described below :

a. Allocation Principles - Schedule A

Allocation was made to the greatest number of eligible purchasers under

Arizona law taking into consideration the following items:

* First category preference under Title 30 to Districts. (A.R.S.

030-125)

* Distribution made on the widest possible use. (APA Reg.

R12-14-21A)

* Consideration given to the existing electric needs of applicants.

(APA Reg. R12-14-21B)

* The reliance of existing customers on a hydroelectric power

b. Allocation Method - Schedule A

1) The distribution of Schedule A power within each category was made

on the basis of the applicant's net load requirement. (Power was

allocated to the extent that the total hydroelectric resources (Hoover,

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Colorado River Storage Project -"CRSP"- and Parker-Davis) did not

exceed 100 percent of the applicant's load requirements.]

2 ) Renewal of existing customers' kilowatt contract amounts because of

reliance upon hydroelectric power.

3 ) Remaining Schedule A capacity (approximately 30,000 kW) allocated to

new district applicants based on their total net existing electric load

requirements.

4 ) Schedule A energy allocated to existing customers, as well as new

eligible applicants, based upon an equal division of kilowatt-hour per

kilowatt of available Schedule A energy.

2 . Schedule B

The Authority was guided by comments received during the public

process and by its own Regulations in arriving at a fair allocation of the

Schedule B resource. This allocation is represented by a set of allocation

principles and an allocation method as described below:

Allocation Principles - Schedule B a.

Allocation was made to the greatest number of eligible purchasers under

Arizona law taking into consideration the following items:

* The greatest practical number of qualified potential users of

electric power based on the electric load requirements of

purchaser. (APA Reg. R12-14-21C)

An equitable distribution among all applicants of a class, w i t h due

consideration for priorities and preferences, as between different

classes. (APA Reg. R12-14-21C)

Limited concentration of power allocated to a particular customer or

service area. (APA Reg. R12-14-21E)

*

*

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* An equitable distribution for water programs of districts,

municipalities and private utilities under Arizona law. ( A . R. S . 445-2501)

* Long-term contract use and future load trends.

* The State Water and Power Plan (Title 45 ) was originally enacted

for the purpose of constructing and financing the Central Arizona

Project (CAP); with the passage of federal legislation for the CAP,

the financial responsibility originally contemplated by the plan in

Title 45 , does not now exist. However, because of the need for

the State to assist the CAP under present conditions, Schedule B

power and energy has been distributed as outlined above, but will

be subject to recapture for the benefit of CAP.

b. Allocation Method - Schedule B

1) Schedule B power and energy was .divided among qualified

tax-exempt entities and qualified non tax-exempt public utilities on the

basis of a 75 /25 percent division under current I . R . S . Regulations.

(A.R.S. 045-2508)

2) The djstribution of Schedule B power, within each method and

category, was made on the basis of the applicant's net load requirement.

Power was allocated to the extent that the total hydroelectric resources

(Hoover, CRSP and Parker-Davis) did not exceed 100 percent of the

applicant's load requirements.

3 ) Schedule B energy was allocated to all eligible applicants based on

an equal division of kilowatt-hours per kilowatt of available Schedule B

energy.

4) Three main allocation distributions were made to each category

identified in Item 1 above:

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a) One-third of available Schedule B was allocated equally among

all qualified applicants on the basis of widespread use

(approximately 45,000 kW for tax-exempt and approximately 15,000

kW for non tax-exenpi utilities).

b) One-third of Schedule B was allocated on the basis of

water-related programs of districts, municipalities and private

utilities. This distribution was limited to not greater than a 50

percent concentration to any one entity.

c) One-third of Schedule B was allocated to all qualified

applicants based upon peak load requirements which may occur

during the years 1984-1989 , including any possible conversions

from natural gas irrigation pumping. This distribution was limited

to not greater than a 50 percent concentration to any one entity.

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ELIGIBILITY FOR ALLOCATION

The Authority, in accordance with the requirement to allocate Hoover

power pursuant to Arizona law and the Authority's Regulations (and

applicable federal statutes and regulations) , has made the following

determinations :

1. Preference Qualifications & Requirements of A.R.S. Title 30 & Title 45 Eligibility for Allocation of Schedule A Power

In its allocations of Schedule A power, the Authority Commission was

required to follow the provisions of Title 30, A.R.S., which, when read in

conjunction with the provisions of the State Water and Power Plan (A.R.S.

045-2501, et seq.) , direct that the power resources designated as "Schedule

A'' be marketed pursuant to A.R.S. 030-101, et seq, as amended.

To qualify for an allocation under Title 30, an entity must be a

"qualified purchaser1', "Qualified purchasers" include :

"Per sons "Operating Units"

1. Natural Persons 1. Districts 2. Mutual & Cooperative 2. State Agencies

3 . Corporations 4. Cities 4. Business Trusts 5. Towns 5. Partnerships

Concerns 3 . Federal Indian Agencies

"Districts" are further defined as power organizations comprehended in

the Arizona Power Authority (A.R.S. Title 30) or water organizations

comprehended in A.R.S. Title 4 5 , or both.

Eligibility for Schedule A power is also controlled by the order of

preference established in A.R.S . 030-125, which, in essence, states that if

available power supplies are insufficient to meet pending power applications,

preference must be given in the following order of priority:

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First: Districts Second: Incorporated Cities, Towns & Cooperatives Third: Applicants other than Districts which use

power primarily for irrigation and drainage purposes, or both.

Fourth : Any Qualified Applicant

Because the supply of Schedule A power is insufficient to meet all

pending power applications (i. e . , available power, at transmission delivery ,

points, is 181,730 kW, and pending applications for Schedule A power exceed

649,000 kW) , the Authority Commission, by law, has been required to restrict

the allocations .of Schedule A power to Districts only. Therefore, no entities,

other than Districts, are entitled to an allocation of Schedule A power,

Eligibility for Allocation of Schedule B Power

Arizona law requires the Authority to market the Hoover Uprating power

(Schedule B) under the provisions of the State Water and Power Plan. (See

A . R . S . 545-2501, et seq., as amended.)

Under the 1982 amendments to the State Water and Power Plan, eligibility

for an allocation of Schedule B Power was restricted to public utilities

providing electrical service and Districts organized to provide electrical

service, except that non tax-exempt public utilities were allowed to purchase

the maximum amount of Schedule B power permitted by federal regulations

concerning the issuance of tax-free bonds.

Although the definition of a "public utility", as contained in the State

Water and Power Plan (A.R.S. §45-2502) is quite broad, the 1982

amendments, being specific in their terms, control over the general definitions

section in the statutes relating to this subject.

Similarly, the definition of a lldistrictff is also quite broad, but, again,

the 1982 amendments, being specific, control the general definitions.

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Consequently, only those public utilities "providing electrical s e r v i c e " ,

and only those "districts" which are "organized to provide electrical service"

were deemed eligible for an allocation for Schedule B power. Cities and

towns , for example , which are not "providing electrical service" were deemed

by the Commission to have been excluded from eligibility as a result of the

1982 amendments to the State Water and Power Plan.

Non Tax-Exempt Entities

As noted above, the 1982 amendments to the State Water and Power Plan

reserved to non tax-exempt public utilities an option to purchase the maximum

amount of Schedule B power which is permitted by federal regulations

governing the issuance of tax-free bonds. In considering the allocations of

Schedule B power, the Authority Commission assumed that current tax

regulations would allow such utilities to purchase up to 25 percent of the

Schedule B resource. The identity of entities as being either tax-exempt o r

non tax-exempt was based upon the interpretation of federal tax regulations

by the Authority's bond counsel.

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DISCUSSION O F PUBLIC COMMENTS

Throughout the public process, the Authority received numerous

constructive and hslpful comments from electrical and irrigation districts ,

public and private electric utilities, municipalities, customer organizations,

associations and private citizens. The comments centered around eight major

issues:

1. The impact of possible delay upon the Hoover allocations and

customer contract completion dates.

2 . Hoover Schedule A and renewal of existing Hoover allocations.

3 . Hoover Schedule B and the Central Arizona Project, including

recapture for (and pooling with) the CAWCD.

4 . Considerations under recapture conditions.

5. Considerations in allocating Hoover Schedules A and B power,

including : (a) total Colorado River resources not exceeding any entity's

load requirements; (b) irrigation and water-related load requirements;

and (c) natural gas and future load requirements.

6 . Allocation of Schedule A and Schedule B energy.

7. Allocation to City of Page.

8. Term of contracts.

1. Possible Delay of Hoover Allocation and Contract Completion Dates

The Authority appreciates the significance of the comments which have

been submitted by numerous entities regarding the importance of the timely

completion of the Authority's Marketing Plan and the completion of the

individual activities and contracts with each of the Authority's proposed

customers. The Authority has recognized, and continues to recognize, the

importance of timely completion of these activities so the Authority will be in

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a position to make all the necessary arrangements to achieve the benefits

which will be available to entities in the State of Arizona through the

acquisition of both Hoover Schedule A and Schedule B power.

2 . Hoover Schedule A and Renewal of Existing Hoover Allocations

The Plan provides for a renewal of the existing kilowatt contract amounts

f r o m Schedule A . Through the public process, the Authority received

comments in favor of renewal and comments opposing such renewal. The

Authority has considered both sides of this question.

The predominance of comments received from Districts w i t h existing

Hoover contracts was for renewal. Other entities, including some Districts

without existing Hoover contracts, also urged renewal. Those opposed to

renewing the existing contract amounts indicated Schedule A power should be

allocated among all qualified entities based on each entity's individual load

requirements. The Authority considered both of these approaches. Study

results show that little, if any, difference would result in the amount of

Schedule A power (kilowatts) which would be allocated to those districts

without existing Authority Hoover contracts if the methodology of allocating

on the basis of individual load requirements was used. Thus, the question of

renewal versus non-renewal does not weigh upon the allocation of Hoover

Schedule A power.

3 . Hoover Schedule B and CAWCD

The Plan divides the Hoover Schedule B contingent capacity and energy

between qualified tax-exempt entities and non tax-exempt entities on a 75/25

percent basis. Many comments were received regarding making some or all of

the Schedule B resource available for pooling with CAWCD generation

resources for the purposes and benefit of the Central Arizona Project.

.

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Many of the comments urged that pooling concepts should be explored

but that committing an allocation of the Hoover Schedule B resource for this

purpose at this time was premature. The Authority recognizes that potential

benefits may accrue through the future use of the Hoover Schedule B

resource in conjunction wi th the Central Arizona Project. However, the

Authority also recognizes the very same Hoover Schedule B resource can also

provide current and future benefits to the applicants for this power. The

Authority has recognized both of these sets of benefits in arriving at its

Marketing Plan by allocating the Hoover Schedule B resource in such a

manner that the Schedule B resource will be subject to recapture by the

Authority in accordance with the recapture provision included under

of this Marketing Plan, supra, pages 2-6.

4. Considerations Under Recapture Conditions

Several Districts commented that to recapture Schedule B power for the

benefit of CAWCD from entities not receiving water from the CAP is neither

justified nor equitable. These Districts argued that through taxation and

surcharges they are required to support the CAP but do not receive any of

its direct benefits.

The Authority understands these concerns and in its marketing process

considered a number of suggestions. To address this problem, the Authority

will , in the future, assist these Districts (and others if requested to do so)

in solving power procurement difficulties in the following manner:

a. A s stated in more detail under "Conditions of APA Power Purchase

Contract" in this Marketing Plan, the Authority will, under its

redistribution and reallocation procedures, give due consideration to the

electric needs of these customers.

b. Under the Navajo Marketing Plan addressed in the Hoover Power

Plant Act of 1984 and upon recapture of Schedule B power, it is

anticipated that upon implementation of that Plan, certain amounts of

Navajo power and energy will be made available for purchase at

appropriate savings to such purchasers. The Authority, if requested by

its customers, will attempt to replace such amounts of recaptured

Schedule B power with Navajo power; or explore the purchase of

additional amounts of Navajo power, as well as the purchase of other

lower cost power supplies.

c. The Authority believes that through pooling of electric power loads

and resources and through centralized wholesale power purchase

contracts with generation utilities, appropriate savings can also be

accomplished. The Authority will explore these alternatives with its

customers.

5. Consideration in Allocating Hoover Schedules A and B Power

Many of the comments received by the Authority during the public

process dealt with the mechanics of allocation. These comments centered

around (a) consideration of the amount of existing Colorado River resources

available to each applicant; (b) the types of loads to be served, including

irrigation and water-related electric load requirements ; and (c) consideration

of loads currently served by natural gas and future load requirements.

A s previously noted, the Authority has proposed that the Schedule A

capacity be allocated to Districts under a renewal approach combined with

providing the remaining amount of Hoover Schedule A capacity to those

districts without existing Hoover contracts ; the distribution of the remaining

Schedule A capacity (approximately 30,000 kW) among those districts was

made on the basis of the net load requirements. Net loads were determined

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by taking the five-year average kilowatt peak demand loads (1979 through

1983) as submitted in each applicant's Profile Data and deducting that

applicant's share of the Colorado River electric resources (Parker-Davis plus

Colorado River Storage Project ). Schedule A contingent capacity allocations

were limited so that the applicant's total hydroelectric generation resources

did not exceed 100 percent of the applicant's load requirements.

A number of Districts commented that four-year average loads (obtained

by omitting 1983 data, perceived by some as a year with unusually low loads

because of the federal "Payment In Kind" program) should be used. The

comments suggested that because 1983 was a below-average year, its inclusion

produced inappropriate averages. This suggestion was tested by comparing

the proposed five-year average to the suggested four-year average loads.

The results showed that some entities' averages decreased and some

increased. Overall, the Districts' four-year average load decreased by only

one percent, rather than increasing, The five-year average provides a

broader base of data, and no equitable basis for eliminating 1983 appears to

exist.

Two Districts commented that existing natural gas loads should have

been included in the allocation bases for both Hoover Schedules A and B. A

variety of factors have been suggested for allocating Schedules A and B .

The Authority Commission has considered several alternative bases , including

natural gas loads. The use of many of these factors would have increased

the complexity of the allocation process beyond reasonable bounds. Examples

of these complexities (in the case of natural gas loads) are that the Authority

would have been required to obtain commitment schedules for converting the

natural gas facilities which, in turn, would require a mechanism for reviewing

the schedule of conversions. Further, the Authority would have been

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required to assure that satisfactory electric transmission and distribution

facilities were either in place, or could be arranged, in time for these

potential customers to receive allocated power. The Authority Commission

has, however, given recognition to identifiable natural gas loads by including

those requirements as future loads in the allocation base for a portion of

Schedule B.

The proposed allocation issued on March 2 9 , 1985, used the existing

CRSP contract amounts. Many entities commented that future CRSP

allocations are to be reduced (effective 1989) in accordance with a September,

1984 , announcement by the Western Area Power Administration. I t was

suggested that the Authority should use the future CRSP amounts instead of

the existing amounts. Both levels of the CRSP resource were investigated.

The use of future CRSP amounts causes only small changes in the allocation

of Schedules A and B. The Authority Commission believes it is appropriate

to use the future CRSP amounts in the process of determining net loads for

the final allocation of Hoover Schedules A and B .

A few comments were received regarding the use of the highest five-year

peak demand for four Districts (which would have received a smaller allocation

than their existing contract amounts) in arriving at the proposed Schedule A

allocation. The Authority Commission, in order to be consistent in its

allocation method, used the same approach (five-year average peak demands)

for all Districts in the final allocation of Hoover Schedule A capacity.

6. Allocation of Schedules A and B Energy

The Plan provides for allocating Schedules A and B energy on an equal

kilowatt-hours per kilowatt basis. The Authority received several comments

during the public process favoring this approach; no comments in opposition

were received.

-21-

The equal kilowatt-hours per kilowatt approach is consistent w i t h past

practices of the Authority and others in the distribution of energy associated

with an electric capacity resource. The Authority also believes this approach

will provide the best and most fair distribution of this energy among all

entities receiving a share of either Hoover Schedule A or Hoover Schedule B

capacity.

7. Allocation to City of Page

The Authority has allocated 1 ,000 kW of Schedule B Hoover power and

energy to the City of Page, Arizona, contingent upon the Ci ty executing a

power sales contract when offered by the Authority and further conditioned

upon the completion by the City of arrangements necessary to qualify itself as

a public utility providing electric service not later than six months prior to

the effective date of the contract.

Comments from the Town of Gilbert, Arizona, and the Gila River Indian

Community Utility Authority ("CRICUA") suggest (among other points) that

they should be treated similarly to Page because they intend, at some future

time, to provide electrical service.

Based upon present circumstances, the position of the City of Page is

easily distinguishable from that of Gilbert and GRICUA. In the case of Page,

the Ci ty has already undertaken the steps necessary to qualify as an entity

"providing electrical service". Page has held an election in which the voters

approved acquisition of electric facilities of Arizona Public Service Company

(APA) which services the City.4 Based upon the approval of its voters, Page

4The Authority understands that a lawsuit contesting the election is on appeal.

-22-

has also commenced condemnation proceedings to acquire the APS facilities.

Neither Gilbert or GRICUA has undertaken similar qualifying steps.

Furthermore, Page arguably is already "providing electrical service" as a

result of the direct allocation to it, of Colorado River Storage Project (CRSP)

power, pursuant to the "Page, Arizona, Community Act of 1974" (P.L.

93-493, 93rd Congress; H.R. 15736, October 27, 1974), a part of the

"Reclamation Development Act of 1974".

8. Term of Contracts

The Authority received several comments during the public process

which urged a fixed thirty-year contract term. As previously noted, by the

Authority at page 19 of its Hoover Power Marketing booklet (initially

distributed at the Public Information Forum on September 14 , 1984), the

Authority's contract with its customers will have a term of thirty years. In

accordance with A . R . S . Title 30, the Authority reserves the right to

terminate that portion of the contract attributable to Schedule A power and

energy, upon reasonable notice by the Authority, at any time after the initial

twenty-year contract period.

-23-

CONDITIONS OF APA POWER PURCHASE CONTRACT

1. Customer's Contract Subject to Western Area Power Administration Contracts

The Authority's contract with the Western Area Power Administration

(Western) will contain terms and conditions which will be applicable to power

marketed by Western under the Conformed General Consolidated Power

Marketing Criteria or Regulations for the Boulder Canyon Area Projects and

in accordance .with the Hoover Power Plant Act of 1084. The Authority's

contracts with its customers, effective June 1 , 1987, will also contain terms

and conditions which are necessary to comply with the provisions of the

Authority's contract for purchase of Hoover power from Western, as well as

the terms and conditions for delivery under a transmission contract from

Western of such power to points of delivery on Western's Parker-Davis

Transmission System.

Terms and conditions of the Authority's contracts with its customers will

provide for (but wi l l not be limited to) the following: 1) Contract Term; 2 )

Conservation Programs ; 3 ) Reserve Requirements; 4) Transfer of Contract

Rights; 5) Conditions on Resale of Power and Energy; 6) Metering; 7 )

Performance Bonds; 8) Delivery Points and Conditions; 9) Losses; 10) Billing;

11) CAWCD Recapture Provision; and 1 2 ) Power Availability. The contracts

will also be subject to all applicable provisions of federal law, including the

Colorado River Compact; the Hoover Power Plant Act of 1984; the Boulder

Canyon Project Act; and the Boulder Canyon Project Adjustment Act and any

applicable federal regulations relating to the Hoover hydro-power resource.

2 . Power Purchase Certificate

No person or operating unit in the State shall become a purchaser of

-24-

electrical power from the Authority unless a power purchase certificate is

obtained as provided in Article 3 , Title 30 Arizona Revised Statutes

( A . R . S . ) , or as provided by the Authority's Regulations.

Following the date upon which power purchase contracts are offered for

execution (scheduled for October 1, 1985), and not later than October 1,

1986, a purchaser shall apply for and obtain a power purchase certificate

from the Authority, pursuant to procedures established by the Authority.

3 . Opinion Letters of Legal Counsel; Resolution

Upon execution of a power purchase contract; upon initial revenue bond

financing by the Authority and upon any subsequent financing, each

purchaser will be required to provide to the Authority (and its financial

representatives) an opinion letter of the purchaser's legal counsel indicating

that the purchaser is legally entitled to enter into the contract upon the

terms and conditions set forth in the contract. The opinion letter must also

be accompanied by a proper form of Resolution authorizing the execution of

the contract by the purchaser. The opinion letter and the Resolution must

be in a form acceptable to the Authority and its advisors and will be in

substantially the same form as the letter and Resolution previously circulated

among interested parties. (A sample form of opinion letter and Resolution will

be provided upon request.)

4. Financial Data

In connection with the Authority's power purchase contracts and its

financing program for the Hoover Uprating Project, each purchaser will be

required, upon the Authority's request, to provide financial data and

certification regarding such financial data.

-25-

5 . Facilities of Others

A purchaser not engaged in the management and operation of its own

electric transmission or distribution system will be required, on or before

October 1, 1986, to submit for approval by the Authority, its respective

contracts or agreements with others for the handling, wheeling, utilization,

administration and delivery of power and energy purchased from the

Authority.

6. Power Excess to Needs of Purchaser

a. Relinquishment with Right to Recapture: Authority Hoover power,

from time to time, may be in excess of the purchaser's immediate needs.

Power purchase contracts will provide that purchasers may tender or

relinquish to the Authority, for resale by the Authority, power and

energy not deemed immediately needed. Such power and energy will be

subject to recapture by the purchaser if needful and necessary within a

reasonable period of time. However, such tender or relinquishment for

resale shall not relieve the purchaser of any original contractual

obligations except under such conditions as may be provided in

supplemental contracts or agreements covering the resale of such power

or energy . b. Restoration to Authority Power Pool: Authority Hoover power, from

time to time, may be in excess of the purchaser's needs due (among

other things) to load change or delivery of Central Arizona Project

water. Authority contracts will provide that any Schedule A o r Schedule

B power which is found to be excessive or unnecessary for the electric

needs of the purchaser may be surrendered for restoration to the

Authority power pool, subject to approval of the Authority; provided,

however, that in the resale or reallocation of power and energy under

-26-

this paragraph and under paragraph 6a, above, due regard and

consideration shall be given to the electric needs of qualified districts

which do not receive, or are not eligible to receive, delivery of water

from CAP

7. Failure to Contract

If a purchaser (or

contract at the time such

potential purchaser) fails to place power under

contract is offered by the Authority (scheduled for

October 1, 1985), in accordance with the terms and conditions offered by the

Authority, or fails to obtain a power purchase certificate (or fails to meet

conditions precedent or to provide such other documentation or agreements

that may be required for the delivery of such power), the amount of power

and energy for which no effective contract has been made wil l be reallocated

for purchase by other qualified entities.

8. Allocation at Transmission Delivery Points

The amounts of Hoover contingent capacity (kW) and energy (kWh) listed

in the attached Tables Two and Three are at transmission delivery points on

Western's Parker-Davis Transmission System. To determine capacity and

energy amounts at generation, a four percent (4%) loss figure must be added.

This four percent (4%) transmission loss value is subject to modification from

time to time. Appropriate adjustments will be made in the amounts of Hoover

Schedules A and B capacity and energy when (and if) the four percent (4%)

value is modified. The Authority has also included in Table Three, the

allocation of Hoover Schedules A and B capacity and energy, at generation.

9. Hoover Uprating Program

The capacity amounts listed for Schedule B are equivalent to the

Authority's total allocated amount. The total Hoover Uprating Program wil l

provide an additional 503 MW of contingent capacity, of which the Authority

-27-

has been allocated 188 MW. The Hoover Uprating Program is now underway

by the United States Bureau of Reclamation (Bureau), and the Authority

estimates that approximately 90 MW will be available to the Authority on June

1, 1987 (the Bureau's determination of this amount is not known at this time).

The development and subsequent availability of the Hoover Uprating

capacity and associated energy is contingent upon the Authority finalizing

financing agreements w i t h the Bureau. The availability of such capacity and

energy is also contingent upon completion of the Uprating Program, which is

to be completed in stages and is currently scheduled for completion in 1992.

Power contracts effective on June 1, 1987, will contain an estimated schedule

for power deliveries from the Uprating Program as the Program progresses.

If any part of the Uprating Program is not completed, the total amount

of contingent capacity initially allocated to contractors will be reduced on a

proportional basis. Power proposed for Schedule A allocations wi l l not be

affected. If, subsequent to such a *capacity reduction, the Uprating Program

is reinstated, in whole or in part, the amounts initially allocated wil l be

restored to the contractors in proportionate amounts as the Upratings are

completed.

- 2 8 -

E N T I T Y C O M M E N T S S U M M A R Y

TABLE ONE PAGE 1-1

JUNE 7, 1985

ENTITY _____-c-----------------

Aguila Irrigation

Avra Valley Irrigation & Drainage District

Conservation District

District

Buckeye Water

Central Arizona Water Conservation District

Chandler Heights Citrus

Cortaro-Harana

Irrigation District

Irrigation District

Electrical District 1, Pinal

Electrical District 2 ,

Elect r i c a lDistrict 3,

Electrical District 4,


Electrical District 5 ,


Pinal

Pinal

Pinal

Maricopa

Pinal

Pinal

ARS ARS HIGHEST

30 45 SCBED RENEWAL DEMAND TITLE TITLE MAINT PEAK

__ __- ----- ----- ------- ------- - -

- -

* *

- -

- -

* *

A* ** * *

A* *

- -

A*

**

SCXED B FOR

CAWCD ------- D

- -

* *

D

- -

*

**

A* ** **

A* *

- -

**

**

LOADS 5-YEAR ALLOCATION CURRENT CRSP/NET TERM OF NATURAL AVG ---------------

GAS LOADS SCBED A SCRED B LOADS CONTRACTS SCHED C . .

D

- I -

* *

- -

- -

*

A*

* **

A* *

* *

- -

* *

**

D

- -

**

D

- -

*

A* *

* ** A* *

**

- -

A* *

* *

- -

*

- -

*

TABLE ONE PAGE 1-2

JUNE 7, 1985

€I I GH EST PEAK DEHAND -------

SCHED B FOR CAWCD -------

LOADS NATURAL GAS

* * A* *Electrical District 7, - - - - Maricopa

- - A - - - - Electrical District 8, Maricopa

A* *

D

Harquahala Power District

** D - - - - **

*f A** Maricopa Water District - - - - McMullen Valley Water ** D - - - - Conservation & Drainage District


Queen Creek Irrigation

- - - - ** * * Ocotillo Water

- - - - - - - - District

Roosevelt Irrigation - - - - * * A** District

Roosevelt Wa t e rConservation District

- - - - A** **

* A* A* Salt River Project - - San Tan Irrigation - - - - - - - - Silverbell Irrigation - - - - - - - - District

& Drainage District

District D * * Tonopah Irrigation D - -

We 1 1 t o n-Mo h a w k A A A * * ** Irrigation & Drainage District

A* *D

* * **

* * ** - - ** * * * *

D - - ** A* * ** - -

A* A* * A* *- - ** - -

A*

- -

** - - * * D **

D - - ** * * * *

TABLE ONE PAGE 1-3

JUNE 7, 1985

ENTITY ........................ City of

city of

City of

Town of

Town of

Mesa

Page

Saf fo rd

Thatcher

Wickenburg

ARS ARS

30 45 SCEED RENEWAL TITLE TITLE MAINT

----- ----- ----- ------- A* A A * A* * * * * - - - - ' - - c -

* - - *- - * *

* - - * *

SCHED B FOR

CAWCD ------- A*

D **

* * *

LOADS 5-YEAR

GAS LOADS NATURAL AVG

------- ------ *

* * **

* * *

* *

CUR RENT CRSP/NET LOADS --------- A* *

TERM OF CONTRACTS ---------

A*

- - * * *

Ak-Chin Indian - - Arizona Electric A*

Arizona Public - -

Citizens Utilities - -

Papago Tribal - -

Community

Power Cooperative

Service Company

Company

Utility Authority

San Carlos Project * Tucson Electric Power - - Company

TABLE ONE PAGE 1-4

JUNE 7, 1985

Agri-Business Council

Arizona Municipal Power Users' Association

Arizona Power Pooling Association

City of Phoenix

City of Tucson

Gila River Indian

of Arizona, Inc.

Community Utility Auth.

Districts Assoc. of Arizona

Irrigation & Electrical

Southern Arizona Water Resources Association

Town of Gilbert

ARS ARS HIGHEST SCRED B LOADS 5-YEAR ALLOCATION CURRENT

30 45 SCHED RENEWAL DEMAND CAWCD GAS LOADS SCHED A SCHED B LOADS CONTRACTS SCHED C CNSP/NET TERM OF FOR NATURAL AVG --------------- TITLE TITLE MAINT PEAK

. I

- - - - A - - A

D - - A - - A

A A 30 YR D

A A A A A

- -

- - - - A A D

* MEMBER OF AMPUA. SEE AMPUA'S COMMENTS.

A = AGREE D = DISAGREE

* * MEMBER OF IEDA. SEE IEDA'S COMMENTS.

S C H E D U L E A A N D S C H E D U L E B

A L L O C A T I O N S

I

* =5====== ====I======== =====c== ======a=======

* * * * * *

TOTALS 377,000 857,989, 000 25.98% 2,276 *

* HOOVER POWER AVAILABLE AT TRANSMISSION DELIVERY POINTS *

* * * SCHEDULE B ENTITIES:

* TAX-EXEMPT: (1)

* NON TAX-EXEMPT: ( 2 )

*

* * * (1) ASSUMED TO

* ( 2 ) ASSUMED TO * * * * * * * * * * * * * *

135,580 1 5 2 , 8 8 7 , 000 12.87% 1 , 1 2 8

45,190 50,959,000 12.87% 1,128

* BE 75%.

BE 25%. * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

* *

JUNE 7, 1985

TABLE TWO PAGE 2-1

JUNE 7, 1985

Aguila Irrigation


Buckeye Water Conse rva t io n Di st r i c t

Central Arizona Water

District


Chandler Heights Citrus Irrigation District

Irrigation District


Cortaro-Narana







Pinal

Pinal

Pinal

Maricopa

Pinal

Pi nal

6, 048

1, 5 7 5

2,871

23,732

1,282

6,188

12,793

53, 1 8 0

75,656

31,708

1,987

20,462

34,319

21,681,826

4, 466,000

6,285,729

143,000,000

5, 652,674

18,329,541

39,374,959

193,538,000

271,506,692

134,679,297

4,804, 448

87,623,861

104,940,356

6,048

1,575

2,871

0

894

6, 188

12,793

43,539

64,604

27,071

343

17,673

28,370

21,681,826

4,466,000

6,285,729

0

4,663,682

18,329,541

39,374,959

168,952,736

237,169,388

122, 855,457

611,024

80,512,421

89,770,100

AT TRANSMISSION DELIVERY POINTS ---^---------------------------

23,800

23,000

4, 400

141,000

1, 400

7,800

19,700

37,351

93,200

41,300

2,650

22,000

31,000

75,4501000

119,022, 240

18,586,000

159,000,000

6,700,000

32,848,000

71,960,000

96,584,000

424,120,000

200,800,000

8,700, 000

114,500,000

125,800,000

6,050

1, 580

2,870

0

890

6,190

10,240

28,070

27,820

24,900

340

17,180

1 5 , 8 0 0

12, 227,000

3,179,000

9,809,000

0

3, 042, 000

21,157,000

22, 976, 000

74,482,000

54, 962, 000

70,907,000

1,162,000

51,895, 0 0 0

35,452,000

TABLE TWO PAGE 2-2

Electrical District 7, Maricopa

Maricopa

District


Harquahala Power

Maricopa Water District

McMullen Valley Water Conservation & Drainage District

Ocotillo Water Conservation District


Roosevelt Irrigation

Roosevelt Water

District

District


32,961

6,104

17,222

9,341

3,991

6,165

19,105

20,204

Salt River Project 2, 133,200

San Tan Irrigation 2,636 District

Silverbell Irrigation 1,738 & Drainage District

District Tonopah Irrigation 3,811

W el 1 t on-Mohawk 30,870 Irrigation & Drainage District

85, 506, 503

191576,048

53,870,261

19,633,641

17,770,524

65,052,792

75,638,529

91821,044,400

9,694,245

4,854,693

12,739,839

138,000,540

11,529

32,961

6,104

11,747

9,341

2,879

4,356

14,101

17,955

2, 003,385

1,786

1,738

3, 811

27,663

48,925,825

85, 506,503

19,576,048

39, 909,317

19,633,641

11,566,285

13,158,492

52,293,816

9,424,240,736

71527,765

4,854,693

12,739,839

122, 859, 444

AT TRANSMISSION DELIVERY POINTS

13,100

48,100

25,500

19,400

29,200

2,300

6,800

16,200

20,200

195,957

3,000

1,750

4,300

11,000

58,500,000

131,658,000

60,000,000

116,700,000

53,110,000

9,683,000

22,700,000

65,423,000

326,227,600

12,000,000

5,000,000

16,500,000

26,158,000

kW

11, 530 --------

23,260

6,090

11,370

8,740

2,300

4,350

7,850

12,790

61,870

1,790

680

3,810

7,800

55,705,000

12,340,000

71 861, 000

8,799,000

15,952,000

29,310,000

155,196,000

3,164,000

2,324,000

7,709,000

15,208,000

TABLE TWO PAGE 2-3

JUNE 7, 1985

TOTAL SCHEDULES A AND B ALLOCATIONS (1)

kW kWh ..................... -------- ------------

4,940 5,571,000

1,000 1,128,000

2,000 2,255,000

FIVE-Y EAR AVERAGE LOADS (3) ..........................

ENTITY kW kWh _I_________-_---------- ---------- --------------- City of Mesa 54,520 214,387,400

City of Page 10,233 46,023,948

City of Safford 9,432 37,885,343

Town of Thatcher 2,525 12,882, 893

Town of Wickenburg 3,392 13,653,500 -_-------- --------------- *Subtotal IRS Tax-Exempts 2,655,353 11,759,087,649 ---------- ---------------

Ak-Chin Indian Commu n i ty

power Cooperative

Company

Company

Papago Tribal Utility Authority

San Carlos Project

Tucson Electric Fower

Arizona Electric

Arizona Public Service

Citizens Utilities

Company

*Subtotal IRS Non Tax-Exempts

5,129 19,430,000 1,070 9,079,856 3,900 19,850,000 1,070

3,300

23,930

2,800

2,370

2,470

9,250

1,207,000

3,721,000

26,985,000

3,157,000

2,673,000

2,785,000

10,431,000

277,441 1,611,810,160 241,876 1,468,450,910 47,000 411,720,000

128,000 330,775,000 2,833,680 13,739,658,200 2,833,680 13,739,658,200

104,311 515,643,057 104,311 515,643,057 25,000 38,130,000

4,599 21,676,632 4,599 21,676,632 15,000 50,250,000

TOTAL :

(1) THE AMOUNTS OF SCHEDULE A ALLOCATIONS AND SCHEDULE B ALLOCATIONS ARE SHOWN ON THE ATTACHED TABLE THREE.

( 2 ) THE VALUES SHOWN FOR TOTAL APPLICATIONS ARE EITHER THE SUM OR MAXIMUM OF THE SCHEDULE A AND SCHEDULE B AMOUNTS SPECIFIED IN EACH APPLICATION AS APPROPRIATE.

(3) THE FIVE-YEAR AVERAGE LOADS ARE THE AVERAGE OF THE 1979 THROUGH 1983 KILOWATT (kw) AND KILOWATT-HOUR (kWh) AMOUNTS SPECIFIED IN THE PROFILE DATA ACCOMPANYING EACH APPLICATION.

( 4 ) THE NET LOADS ARE THE FIVE-YEAR AVERAGE LOADS LESS EACH ENTITY'S ENTITLEMENT FROM PARKER-DAVIS AND COLORADO RIVER STORAGE PROJECT (ADJUSTED FOR LOSSES TO TRANSMISSION DELIVERY POINTS).

PAGE 2-4

DETAILED INFORMATION

REGARDING

SCHEDULE A AND SCHEDULE B

ALLOCATIONS

TABLE THREE PAGE 3- 1

JUNE 7, 1985

Aguila Irrigation


Buckeye Water Conservation District

Central Arizona Water

District



Irrigation District








Co r t a ro -Mar an a

Pinal

Pinal

Pinal

Maricopa

Pinal

Pinal

-- --

3,000

--

900

7,800

--

18,700

10 300

16,700

1,000

14,200

7,700

-- --

12,636,000

--

3,792,000

32, 848,000

--

78,746,000

43,378,000

78,746,000

4,212,000

59,799,000

32,429,000

EXISTING APA CONTRACTS AND

NEW SCHEDULES A AND B ALLOCATIONS AT TRANSMISSION DELIVERY POINTS ................................. ...............................

kW -------- 2,360

610

2,870

--

890

6,190

4,990

18,700

10,300

16,700

340

14,200

7,700

I .

kWh ------------- 8,066, 000

2,085,000

9,809,000

--

3,042,000

21,157,000

17,056,000

63,916, 000

35, 205,000

63,916,000

11162,000

48,535, 000

26,318,000

3,690

970

0

0

0

0

5, 250

9,370

17,520

6, 200

0

2,980

8,100

4, 161, 000

1,094,000

0

0

0

0

5,920,000

10,566,000

19,7571000

6, 991,000

0

3, 360,000

9,134,000

TOTAL kW --------

6, 050

1,580

2,870

0

890

6,190

10 , 240

28,070

27,820

24,900

340

17,180

15, 800

TOTAL kWh ---------_--

12, 227,000

3,179,000

9,809,000

0

31042,000

21,157,000

22,976,000

74,482,000

54, 962,000

70,907, 000

1, 162,000

51,895, 000

35, 452,000

TABLE THREE PAGE 3-2

JUNE 7, 1985

Electrical District 7, 10,100 Maricopa

Mar icopa

District

Electrical District 8, --

Harquahala Power --

Maricopa Water District 8,500

McMullen Valley Water -- Conservation & Drainage District

Ocotillo Water Cons e rva tion Di s t r ic t


Roosevelt Irrigation

District

District

Roosevelt Water Con se rva t ion D i st ric t

Salt River Project

San Tan Irrigation

Silverbell Irrigation & Drainage District

Tonopah Irrigation District

District

Wellton-Mohawk Irrigation & Drainage District

*Subtotal D i s t r i c t s:

2, 300

--

3,100

6,500

37,300

500

--

--

2, 800

42,532,000

--

35,794,000

--

9,683,000

--

13,049,000

27,371,000

157,079,000

2,106,000


NEW SCHEDULES A AND B ALLOCATIONS AT TRANSMISSION DELIVERY POINTS ................................. ............................... NEW

SCHEDULE A ALLOCATIONS

10,100

12,870

2,390

8,500

3,650

2,300

1,700

3,100

6,500

37,300

500

680

1, 490

2, 800

34,521,000

43,989,000

8,168,000

29,053,000

12, 475,000

7,861, 000

5,811,000

10,596,000

22,217,000

127,489,000,

1, 709,000

2,324,000

5, 093, 000

9,570,000

1,430

10,390

3,700

2,870

5,090

0

2,650

4,750

6,290

24,570

1,290

--

2,320

5,000

-------- 124,430

. .

1,613,000

11,716,000

4,172,000

3,236,000

5,740,000

0

2,988,000

5,356,000

7,093,000

27,707,000

1,455,000

2,616,000

5,638,000

NEW TOTAL SCHEDULES A.and B

ALLOCATIONS ..................... TOTAL TOTAL

kW kWh -------- ------------ 11,530

23,260

6,090

11,370

81740

2,300

4,350

7,850

12,790

61,870

1,790

680

3,810

7,800

36,134,000

55,705,000

12,340,000

32,289,000

18,215, 000

7, 861,000

8, 799,000

15,952,000

29,310, 000

155,196,000

3,164,000

2,324,000

7,709,000

15,208,000


JUNE 7, 1985

-- -- City of Mesa

City of Page

City of Safford

Town of Thatcher

-- -- -- -- -- --

Town of Wickenburg -- -- -------- ------------ *Subtotal IRS Tax-Exempts 153,400 645,989,000 -------- ------------

Ak-Chin Indian

Arizona Electric

Community

Power Cooperative

Company

Company

Papago Tribal utility Authority

San ;Carlos Project

Tucson Electric Power

Arizona Public Service

Citizens Utilities

Company

*Subtotal IRS Non Tax-Exempts

TOTAL :

3,300 3,721,000

23,930 26,985, 000

2,800 3,157,000

2,370 21673,000


JUNE 7, 1985

EXISTING APA CONTRACT AMOUNTS

Aguila Irrigation



District

Buckeye Water

Central Arizona Water Conservation District


Irrigation District


Cortaro-Marana






Pinal

Pinal

Maricopa

Pinal


--

--

3,000

--

900

7, 800

--

18,700

10,300

18,700

1,000

14,200

7,700

-- --

12,636,000

--

3,792,000

32,848,000

--

78,746,000

43,378,000

78,746,000

4,212,000

59,799,000

32,429,000

AT GENERATION -------------

2,450

630

2,980

0

930

6,440

5,190

19,450

10,710

19,450

350

14,770

8,010

8,389,000

2,168,000

10,201,000

0

3,164,000

22,003,000

17,738,000

66,473,000

36,613,000

66,473,000

1,208,000

50,476,000

27,371,000

3,840

1, 010

0

0

0

0

5,460

9,740

18,220

6,450

0

3,100

8,420

4,327,000

1,138,000

0

0

0

0

6,157,000

10,989,000

20,547,000

7,271,000

0

3,494,000

9,499,000

6,290

1,640

2,980

0

930

6, 440

10,650

29,190

28,930

25,900

350

17,870

16,430

12,716,000

3,306,000

10,201,000

0

3,164,000

22,003,000

23,895,000

77,462,000

57,160,000

73,744,000

1,208,000

53,970,000

36,870,000


JUNE 7, 1985

EXISTING APA CONTRACT AMOUNTS

Electrical District 7, 10,100 Mar i copa

Maricopa

District

Electrical District 8, --

Marquahala Power --

Maricopa Water District 8,500

McMullen Valley Water -- Conservation & Drainage District

Ocotillo Water Conservation District

Queen Creek Irrigation District

Roosevelt Irrigation District

Roo s eve lt Wa t e r Conservation District

Salt River Project

San Tan Irrigation District

Silverbell Irrigation & Drainage District

Tonopah Irrigation District

Wellton-Mohawk Irrigation & Drainage District

*Subtotal Districts:

2,300

--

3,100

6, 500

37,300

500

--

--

2,800

42,532,000

--

35,794,000

--

9,683,000

--

13 I 049 I 000

27,371,000

157,079,000

2,106,000

--

10,500

13,390

2, 490

8,840

3, 800

2, 390

1,770

3, 220

6,760

38 , 790

520

710

1, 550

2, 9 1 0

45,749,000

8, 495, 000

30, 215,000

12,974,000

8, 175,000

6 ,043,000

11,020,000

23,1O6,OOO

5,297, 000

9,953, 000

1,490

10, 810

3, 850

2, 980

5, 290

0

2,760

4,940

6,540

25,550

1,340

--

2,410

5, 200

1, 678,000

12,185,000

4,339,000

3,365,000

5, 970, 000

0

3,108,000

5,570,000

7,377,000

28,815, 000

1,513,000

--

2,721,000

5,864,000

AT GENERATION -------------

11, 990

24,200

6,340

11, 820

9,090

2,390

4,530

8,160

13,300

64,340

1,860

710

3,960

8,110

37,580,000

57,934,000

12, 834,000

33,580,000

18,944,000

16,590, 000

30,483,000

161,404,000

3,290,000

2, 417, 000

8,018,000


JUNE- 7, 1985


NEW SCHEDULES A AND B ALLOCATIONS ................................. AT GENERATION -------------

5,140 5,794,000

1,040 1,173,000

-- -- City of Mesa

City of Page -- -- city of Safford -- --

-- -- Town of Thatcher Town of Wickenburg -- -- -------- *Subtotal IRS Tax-Exempts 153,400 645,989,000 -------- ------------

Ak-Chin Indian Community

Arizona Electric -- --

Arizona Public Service -- --

Citizens Utilities -- --

Power cooperative

Company

Company

Utility Authority -- -- Papago Tribal

Sari Carlos Project -- -- Tucson Electric Power -- -- Company

*Subtotal IRS -------- ------------

Non Tax-Exempts -- -- -------- ------------

-- -- 3,430 3,870,000 3,430 3,870,000

-- -- 24,890 28,064,000 24,890 28,064,000

-- -- 2,910 3,283,000 2,910 3,283,000

2,470 2,780,000

-- -- 2,570 2,896,000

L- -- 9,620 10,848,000

2, 570 2,896,000

9,620 10,848,000

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