00-048 ABAG Power
CORE NATURAL GAS SALES AND AGGREGATION AGREEMENT
This is the First Amendment to the Core Natural Gas Sales and Aggregation Agreement (Agreement),
dated the sixth day of December, 1999, by and behveen the Association of Bay Area Governments, a
California joint powers agency, (ABAG), and the C::ty of Cupertino, a California municipalicy, (Public
Agency). Upon execution by both parties, this Agreement becomes effective July 1; 1999.
The parties hereby agree to amend the Agreement as 1:ollows:
A. ABAG is replaced by ABAG Publicly OWne~i Energy Resources (ABAG POWER).
B. Paragraph 7 of the Agreement is replaced by t:he following:
Term: ,Subject to the provisions of Paragraphs 12 and 13 hereof, and receipt of timely
notifications of alternative arrangements, this Agreement shall be in full force for a three (3) year
term commencing July 1, 1999. Subject'to Paragraph 13, the term of this Agreement shall be
automatically extended for additional three-~~ear periods upon ABAG POWER's submission to
Public Agency of written notice in conformity with Paragraph 11 and provided that ABAG
POWER is not in breach of this Agreement, no later than May 1 of each year.
C. Paragraph 8 of the Agreement is replaced by the following:
Fees: The operational fees for all services described in Paragraphs 3 and 5 shall be established
by the ABAG POWER Board of Directors, hereinafter "Board".
D. Paragraph"11 of the Agreement is replaced by the following:
Gas Program Pricing:
11.1 Allocation. The gas charges to the participants will include the (a) cost of the gas
commodity (gas charges), (b) applicable utility transportation charges, and (c)
administrative costs. Gas charges are the product of a participant's usage times the unit
rate for gas for each month. The unit rate is the total monthly cost of natural gas purchased
for all participants at the supplier contract price divided by the total monthly usage of
participants. Transportation and administrative charges will be allocated to each
participant based on gas usage.
11.2 Annual Report. Each year, ABAG POWER will provide each participant with a report
showing that participant's total costs for natural gas, transportation services and
administrative fees at a per therm cost for each category.
11.3 Gas Purchasing. Under the policy dire~~tion of the ABAG POWER Executive Committee,
the ABAG staff will regularly canvas the natural gas market and enter into contracts to
acquire natural gas for, among others, ;fixed price, indexed price and variable price with a
minimum and/or maximum. ABAG staff, under the policy direction of the ABAG
POWER Executive Committee, has the power to execute all contracts reasonably necessary
to deliver natural gas to each participant.
E. Paragraph 13.1 of the Agreement is replaced ley the following:
Cancellation by Public Agency: Public Agency may cancel the Agreement by giving ABAG
POWER written notice by June 1 of its intent to terminate on June 30 of the final year of the
three (3) year term.
IN WITNESS W]EIEREOF, the parties have hereunto set their hands effective the date and year first
above written.
ASSOCIATION OF BAY AREA GOVERNMENTS
'~ ,
By: - ~ ~ .
Eugene eong, xecutive Director
Approved as to le al form and con nt:
By:
eth K oy, gal Counsel
L>ate: ~ ~' ~~' u
Date: ~ `~~~
ABAG PUBLICLY OWNED ENERGY RESOURCE;i
By. -^-C'' - ~~-'r'~'
Eugen .Leong, resident
Approved as to legal forma content:
By:
Kenneth K. o egal Counsel
PUBLIC AGENCY
rney
Approved as to
Date: ~- ~.~v .2~-t~ c~
Date:
Date:
~"_'_ , '~' _ Date:
John Statton, Mayor, City of Cupertino
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