Construction Payments. (a) The Operator designated by the Ownership Agreement pursuant to Section 8 thereof has established a separate trust account (“Construction Trust Account”) in a bank located in the State of Montana and having qualifications meeting all requirements imposed upon depositories for any of the Transmission Owners. Sums of money for Costs of Transmission System Construction shall be deposited therein and Transmission Operator shall withdraw and apply funds therefrom only as necessary to pay Costs of Transmission System Construction. (b) The Transmission Operator shall establish upon receipt from any Transmission Owner of reasonable advance notice a trust account separate from the Construction Trust Account, subject to the same qualifications required by Section 16(a). Thereafter, sums of money for Costs of Transmission System Construction shall be deposited in said separate trust account and withdrawn as provided by Section 16(a). (c) For 330 MW of Montana’s Requirements Capacity and 330 MW of Puget’s Requirements Capacity in the C-B Segment, Montana has paid on behalf of Montana and Puget $13,304,727 to construct a double circuit steel tower 230 kV transmission line, a portion of the Transmission System. This amount shall be credited to Montana as a payment of Costs of Transmission System Construction. After reimbursement to Montana by Puget pursuant to Section 16(d) hereof, said amount shall be credited one-half to Puget and one- half to Montana as a payment of Costs of Transmission System Construction. (d) As reimbursement for one-half of the payment referred to in Section 16(c), Puget shall pay Montana $6,652,363.50, less accumulated depreciation reserve, on the date (the “Reimbursement Date” stated in Section 4.2 of the Montana-Puget Colstrip Units #1 and #2 Transmission Contract) the Transmission Committee determines that the Transmission System will be energized and has sufficient capacity to transmit the Project’s and Colstrip Units #1 and #2 net generating capability, unless otherwise agreed by Montana and Puget; provided, however, that said reimbursement shall not constitute a novation, nor relieve Puget, of its obligations under the Montana-Puget Colstrip Units #1 and #2 transmission contract for liabilities accrued thereunder and for annual costs specified in Section 3.3 of said contract. Said reimbursement shall thereafter relieve Puget of its obligation to reimburse Montana for its share of the annual cost of the Colstrip-Broadview 230kV transmission line, a part of the Transmission System. (e) For 330 MW of Puget’s Requirements Capacity in the B-T Segment, Puget shall pay $11,146,164 plus Puget’s actual short-term borrowing rate from August 1, 1976, on said amount which remains unpaid, on or before May 1, 1982. This amount shall be credited to Puget as it is made, as a payment of Costs of Transmission System Construction. (f) Except as provided in Section 16(g), each Transmission Owner’s proportionate share of the Costs of Transmission System Construction in excess of payments described in Section 16(c) and (e) shall be determined and paid for on the basis of its Project Share. At the time of execution of this Agreement or promptly thereafter, each Transmission Owner shall have paid (or cause payment of) its Project Share of the accumulated Costs of Transmission System Construction incurred prior to the date of such execution in excess of the payments described in Sections 16(c) and (e). (g) Each Transmission Owner’s share of Costs of Transmission System Construction related to Transmission System Capital Additions shall be determined and paid for on the basis of Requirements Shares in each segment to which said addition is made. Each Transmission Owner’s share of Costs of Transmission System Construction related to any Transmission System Elective Capital Addition shall be determined and paid for as set forth in Section 32(a). (h) Upon execution of this Agreement, each Transmission Owner shall deposit (or cause deposit of) into the Construction Trust Account its Project Share of a working fund of $50,000. Transmission Operator shall periodically notify each Transmission Owner a reasonable period of time in advance, as determined from time to time by the Transmission Committee, or in the event of an emergency as soon as practicable, of expenditures for Costs of Transmission System Construction. Whether or not such expenditures are provided for in the budget, each Transmission Owner shall deposit (or cause deposit of), its share of such expenditures, as determined in Section 16(f) in the Construction Trust Account in funds immediately available on the dates specified in the notification. (i) The Construction Trust Account may from time to time be closed or later reopened upon the unanimous action of the Transmission Committee.
Appears in 2 contracts
Sources: Transmission Agreement, Transmission Agreement
Construction Payments. (a) The Operator designated by the Ownership Agreement pursuant to Section 8 thereof has established a separate trust account (“Construction Trust Account”) in a bank located in the State of Montana and having qualifications meeting all requirements imposed upon depositories for any of the Transmission Owners. Sums of money for Costs of Transmission System Construction shall be deposited therein and Transmission Operator shall withdraw and apply funds therefrom only as necessary to pay Costs of Transmission System Construction.
(b) The Transmission Operator shall establish upon receipt from any Transmission Owner of reasonable advance notice a trust account separate from the Construction Trust Account, subject to the same qualifications required by Section 16(a). Thereafter, sums of money for Costs of Transmission System Construction shall be deposited in said separate trust account and withdrawn as provided by Section 16(a).
(c) For 330 MW of Montana’s Requirements Capacity and 330 MW of Puget’s Requirements Capacity in the C-B Segment, Montana has paid on behalf of Montana and Puget $13,304,727 to construct a double circuit steel tower 230 kV transmission line, a portion of the Transmission System. This amount shall be credited to Montana as a payment of Costs of Transmission System Construction. After reimbursement to Montana by Puget pursuant to Section 16(d) hereof, said amount shall be credited one-half to Puget and one- half to Montana as a payment of Costs of Transmission System Construction.
(d) As reimbursement for one-half of the payment referred to in Section 16(c), Puget shall pay Montana $6,652,363.50, less accumulated depreciation reserve, on the date (the “Reimbursement Date” stated in Section 4.2 of the Montana-Puget Colstrip Units #1 and #2 Transmission Contract) the Transmission Committee determines that the Transmission System will be energized and has sufficient capacity to transmit the Project’s and Colstrip Units #1 and #2 net generating capability, unless otherwise agreed by Montana and Puget; provided, however, that said reimbursement shall not constitute a novation, nor relieve Puget, of its obligations under the Montana-Puget Colstrip Units #1 and #2 transmission contract for liabilities accrued thereunder and for annual costs specified in Section 3.3 of said contract. Said reimbursement shall thereafter relieve Puget of its obligation to reimburse Montana for its share of the annual cost of the Colstrip-Broadview 230kV transmission line, a part of the Transmission System.the
(e) For 330 MW of Puget’s Requirements Capacity in the B-T Segment, Puget shall pay $11,146,164 plus Puget’s actual short-term borrowing rate from August 1, 1976, on said amount which remains unpaid, on or before May 1, 1982. This amount shall be credited to Puget as it is made, as a payment of Costs of Transmission System Construction.
(f) Except as provided in Section 16(g), each Transmission Owner’s proportionate share of the Costs of Transmission System Construction in excess of payments described in Section 16(c) and (e) shall be determined and paid for on the basis of its Project Share. At the time of execution of this Agreement or promptly thereafter, each Transmission Owner shall have paid (or cause payment of) its Project Share of the accumulated Costs of Transmission System Construction incurred prior to the date of such execution in excess of the payments described in Sections 16(c) and (e).
(g) Each Transmission Owner’s share of Costs of Transmission System Construction related to Transmission System Capital Additions shall be determined and paid for on the basis of Requirements Shares in each segment to which said addition is made. Each Transmission Owner’s share of Costs of Transmission System Construction related to any Transmission System Elective Capital Addition shall be determined and paid for as set forth in Section 32(a).
(h) Upon execution of this Agreement, each Transmission Owner shall deposit (or cause deposit of) into the Construction Trust Account its Project Share of a working fund of $50,000. Transmission Operator shall periodically notify each Transmission Owner a reasonable period of time in advance, as determined from time to time by the Transmission Committee, or in the event of an emergency as soon as practicable, of expenditures for Costs of Transmission System Construction. Whether or not such expenditures are provided for in the budget, each Transmission Owner shall deposit (or cause deposit of), its share of such expenditures, as determined in Section 16(f) in the Construction Trust Account in funds immediately available on the dates specified in the notification.
(i) The Construction Trust Account may from time to time be closed or later reopened upon the unanimous action of the Transmission Committee. 17. Costs of Transmission System Operation Costs of Transmission System Operation means all expenses incurred in or relating to the operation and maintenance of the Transmission System, including but not limited to: - 15 - (a) Payroll, including related fringe benefits and payroll taxes, of direct full-time Transmission System employees; (b) Payroll of Transmission Operator’s employees, other than those charged to its administrative and general expenses, and other than direct full-time Transmission System employees, on an actual time basis including related fringe benefits and payroll taxes; (c) Materials and supplies including related purchasing and handling costs; (d) Reasonable traveling expense including use of Transmission Operator’s transportation equipment; (e) All costs of insurance obtained pursuant hereto applicable to operation or maintenance of the Transmission System; (f) All costs relating to injury or damage (whether incurred by a Transmission Owner, the Transmission Operator or any other person or entity) arising out of operation or maintenance of the Transmission System (other than those costs disclaimed, released or indemnified pursuant to Section 24(a), (c), (d) or (g)) less proceeds of insurance maintained pursuant hereto or of insurance under any contract relating to operation or maintenance of the Transmission System; (g) All federal, state and local taxes and payments in lieu of taxes legally required to be paid in connection with ownership, operation and maintenance of the Transmission System, except any tax or payment in lieu of taxes assessed or charged directly against any individual Transmission Owner unless such tax or payment was assessed or charged to the individual Transmission Owner on behalf of the Transmission System; (h) All costs of providing dispatching services for the Transmission System; (i) All costs required by the Transmission Agreement executed by BPA and Transmission Owners, Contract No. DE-MS79-▇▇▇▇▇▇▇▇▇, to be paid by the Transmission Operator to BPA on behalf of Transmission Owners; and (j) Administrative and general costs of Transmission Operator applicable to Transmission System operation and maintenance as determined in accordance with Exhibit “E” attached hereto.
Appears in 1 contract