HomeMy WebLinkAbout16- Service Agreement 782 Communication - NorthWestern Energy Reimbursement Agreement for Story Mill Park Power Pole
208 N. Montana Avenue, # 205 | Helena, MT 59601 | O 406-443-8987 NorthWesternEnergy.com
July 12, 2016
via eFiling
Kimberly D. Bose, Secretary
Federal Energy Regulatory Commission
888 First Street N.E.
Washington, DC 20426
Re: NorthWestern Corporation (Montana), Docket No. ER16-___-000
Service Agreement No. 782 – Reimbursement Agreement between the City of Bozeman
and NorthWestern Corporation d/b/a NorthWestern Energy
Dear Secretary Bose:
Pursuant to Section 205 of the Federal Power Act, 16 U.S.C. § 824d, and 18 C.F.R. § 35.13(a)(2)(iii)
of the Federal Energy Regulatory Commission’s regulations, NorthWestern Corporation d/b/a
NorthWestern Energy hereby submits for filing and acceptance a Reimbursement Agreement
between the City of Bozeman and NorthWestern Corporation d/b/a NorthWestern Energy. The
Agreement is designated as Service Agreement No. 782 under NorthWestern Energy’s Montana
Open Access Transmission Tariff (OATT).
NorthWestern Energy respectfully requests waiver of the prior notice requirement to permit the
Agreement to become effective on July 13, 2016.
I. Background
NorthWestern Energy is a public utility engaged in the generation, transmission, and distribution
of electricity and the supply and transportation of natural gas. Its facilities are located primarily
in Montana and South Dakota. In South Dakota, NorthWestern Energy is a transmission owner
within the Southwest Power Pool, Inc. and has transferred functional control of a large portion of
its electric transmission facilities there to SPP. In Montana, NorthWestern Energy is a
transmission owner/operator and Balancing Authority Area operator within the Western
Electricity Coordinating Council.
Kimberly D. Bose, Secretary | July 12, 2016 | Page 2 NorthWesternEnergy.com
NorthWestern Energy’s Montana and South Dakota transmission facilities are not physically
connected and are not in the same electric reliability region. Accordingly, NorthWestern Energy
maintains separate open access transmission tariffs for operations in each state. This filing
concerns a service agreement under NorthWestern Energy’s Montana OATT.
II. Description of Filing
On June 28, 2016, NorthWestern Energy and the City of Bozeman entered into an Agreement in
which NorthWestern Energy agreed to replace a power pole located in the Story Mill
Community Park to eliminate the conflicts between the 161-kV transmission pole down guys
and anchors and the City’s rehabilitation project in the park. Under the terms of the Agreement,
NorthWestern Energy will provide the City a replacement plan prior to beginning work on the
project.
The parties estimated a cost of $80,000 for the relocation work. The City will reimburse
NorthWestern Energy for 50% of the actual costs and expenses incurred. It should be noted that
the costs to be charged to the City represent NorthWestern Energy’s actual costs in providing
the engineering and construction services. Accordingly, there is no profit component to this
Agreement.
NorthWestern Energy has not invoiced the City or received any payment under this Agreement.
NorthWestern Energy plans to begin work on the project in late summer or early fall 2016.
III. Proposed Effective Date & Request for Waiver
Pursuant to 18 C.F.R. § 35.11 and for good cause shown, NorthWestern Energy respectfully
requests waiver of the prior notice filing requirement under 18 C.F.R. § 35.3 of the Commission’s
regulations to permit the Agreement to become effective on July 13, 2016. The Commission’s
policy permits waivers of the 60-day prior notice filing requirement in the case of uncontested
filings that do not change rates.1
1 See Central Hudson Gas & Electric Co., 60 FERC ¶ 61,106, reh’g denied, 61 FERC ¶ 61,089 (1992), and Prior Notice and
Filing Requirements Under Part II of the Federal Power Act, 64 FERC ¶ 61,139, clarified, 65 FERC ¶ 61,081 (1993).
Kimberly D. Bose, Secretary | July 12, 2016 | Page 3 NorthWesternEnergy.com
IV. General Information
Pursuant to 18 C.F.R. § 35.13(b), NorthWestern Energy provides the following information:
1) This filing includes the following documents:
a. This transmittal letter; and
b. Service Agreement No. 782, Reimbursement Agreement between the City of
Bozeman and NorthWestern Corporation d/b/a NorthWestern Energy.
2) As discussed above, NorthWestern Energy respectfully requests an effective date of
July 13, 2016.
3) The names and addresses of persons to whom a copy of the filing has been mailed:
Chris A. Kukulski, City Manager
City of Bozeman
Bozeman, MT
ckukulski@bozeman.net
Copies of this filing are available for public inspection during normal business hours at
NorthWestern Energy’s Montana General Office, 11 East Park, Butte, Montana.
4) This filing does not involve a rate change.
In addition, NorthWestern Energy respectfully submits that the requirements of 18 C.F.R.
§ 35.13(b) that have not been specifically addressed are inapplicable to this filing. To the extent
that the Commission determines the requirements of Section 35.13(b) or (c) or any other rules to
be applicable, NorthWestern Energy respectfully requests waiver of the requirements of such
provisions.
V. Communications
Communications concerning this filing should be directed to the following persons, who should
be included on the official service list compiled by the Secretary in this proceeding:
Kimberly D. Bose, Secretary | July 12, 2016 | Page 4 NorthWesternEnergy.com
Michael Cashell
Vice President – Transmission
NorthWestern Energy
11 East Park
Butte, MT 59701
Phone: (406) 497-4575
michael.cashell@northwestern.com
M. Andrew McLain
Corporate Counsel & FERC Compliance Officer
NorthWestern Energy
208 N. Montana Avenue, Suite 205
Helena, MT 59601
Phone: (406) 443-8987
andrew.mclain@northwestern.com
VI. Conclusion
For the foregoing reasons, NorthWestern Energy respectfully requests the Commission to accept
the enclosed Agreement for filing; grant waiver of the prior notice filing requirement to permit
the Agreement to become effective July 13, 2016, as requested; and grant waiver of any other
Commission regulations deemed applicable this filing.
Respectfully submitted,
s/ M. Andrew McLain
M. Andrew McLain
Corporate Counsel & FERC Compliance Officer
andrew.mclain@northwestern.com
O 406-443-8987
MAM/dq
Enclosure
cc: Chris A. Kukulski, City Manager
Montana Public Service Commission
Kimberly D. Bose, Secretary | July 12, 2016 | Page 5 NorthWesternEnergy.com
VII. Certificate of Service
I hereby certify that I have this day served the foregoing document upon each person
designated in the foregoing transmittal letter, in accordance with Rule 2010 of the Commission’s
Rules of Practice and Procedure, 18 C.F.R. § 385.2010.
Dated this 12th day of July, 2016.
s/ M. Andrew McLain
M. Andrew McLain
Corporate Counsel & FERC Compliance Officer
NorthWestern Energy
208 N. Montana Avenue, Suite 205
Helena, MT 59601
(406) 443-8987
andrew.mclain@northwestern.com
Service Agreement No. 782
Reimbursement Agreement
between the City of Bozeman
and NorthWestern Corporation
d/b/a NorthWestern Energy
Requested Effective Date: July 13, 2016
Clean Tariff Record
NorthWestern Corporation
(Montana)
FERC Electric Tariff Volume No. 5
Open Access Transmission Tariff
NorthWestern
Energy
REIMBURSEMENT AGREEMENT
NWE-0001 072
r 1 1-\fhis Reimbursement Agreement ("Agreement''), made and entered into effective as of the
25/ <ray of june, 2016, by and between City of Bozeman, a municipality organized under the laws
of the State of Montana (hereinafter referred to as "City"), with principal mailing address of PO
Box 1230, Bozeman, MT 59771-1230, and NorthWestern Corporation d/b/a NorthWestern
Energy, a Delaware corporation (hereinafter referred to as "NorthWestern"), with an office at 11
E. Park St., Butte, MT 59701.
WHEREAS, City is rehabilitating its Story Mill Community Park (the "Park") located north
of East Griffin Drive in Bozeman; and
WHEREAS, NorthWestern owns and operates a 161 kV power line that is attached to power
poles, one of which is located at the Park and is identified as Pole# 10-02 (hereinafter referred
to as "the Power Pole"); and
WHEREAS, City has requested that NorthWestern replace the Power Pole and enter into an
agreement providing for such replacement and reimbursement, and NorthWestern is willing to
complete the work, without full reimbursement, for the betterment of the Park and the City; and
NOW, THEREFORE, the parties agree as follows:
1. NorthWestern shall replace the Power Pole at the Park to eliminate the confli cts with
the 161kV transmission pole down guys and anchors. The Power Pole, described as a 75-ft Class
2 pole, and its down guys and anchor will be replaced with a LWS self-supporting pole, described
as LWS ELR-H16-83.5c180 LAM pole, in the existing pole location.
NOI-thWestern may employ third-party cuulnu.;Lurs Lu perform any work hereunder.
2. NorthWestern shall provide City a plan for replacing the Power Pole which includes
preliminary engineering and cost estimates prior to performing the work hereunder. No
relocation work will be performed until the parties have agreed on the replacement plan.
3. City shall reimburse NorthWestern 50% of the actual costs and expenses incurred in
connection with the relocation contemplated by this Agreement, within 30 days of receipt of an
invoice from NorthWestern.
4. NorthWestern shall make reasonable efforts to relocate the Power Pole by December
31, 2016, subject to this Agreement being fully executed on or before july 31, 2016, the
acquisition of materials, and the timely receipt of all applicable governmental and environmental
permits or licenses. With the exception of the respective indemnification obligations of
NorthWestern and the City, this Agreement will terminate upon completion of the relocation of
the Power Pole and satisfaction of the reimbursement obligations set forth in Paragraph 5.
5. The cost of the relocation work is estimated by the parties to be $80,000 (the
"Estimate"). It is understood that this Estimate in no way constitutes the final reimbursement
amount as provided in Paragraph 3 above. The reimbursement shall not exceed half the actual
costs and expenses incurred by NorthWestern. Actual costs and expenses include, but are not
limited to, planning, design, materials, labor, contract, auto-mechanical equipment, and
engineering costs in connection with accomplishing the relocation contemplated by this
Agreement. NorthWestern shall provide an invoice to City after the completion of the work
contemplated by this Agreement. All payments based upon this final invoice detail of costs shall
be made within 30 days of the date of receipt by City of the invoice.
6. NorthWestern shall comply with applicable laws during the performance of the
relocation of the Power Pole at the Park
7. NorthWestern shall have a policy to provide equal employment opportunity in
accordance with all applicable state and federal a nti-discrimination laws, regulations, and
contracts. NorthWestern shall not refuse employment to a person, bar a person from
employment, or discriminate against a person in compensation or in a term, condition, or
Service Agreement No. 782
NorthWestern
Energy NWE-0001072
privilege of employment because of race, color, religion, creed, sex, age, marital status, national
origin, actual or perceived sexual orientation, gender identity, physical or mental disability,
except when reasonable demands of the position require an age, physical or mental disability,
marital status, or sex distinction. NorthWestern shall require these nondiscrimination terms of
its subcontractors fulfilling NorthWestern's obligations under this Agreement.
8. NorthWestern agrees to indemnify, protect, and hold City, and its officers, employees,
representatives and agents harmless from and against any and all third party actions or causes
of action, claims, demands, liabilities, loss, damage, injury, suit, proceeding, judgment, cost, or
expense of whatever kind or nature, including but not limited to reasonable attorneys' fees,
arising from or as a result of any negligent incident, act, action or omission of said NorthWestern,
in connection with, or incidental to the relocation of Power Pole except to the extent such loss,
cost, liability, or expense was proximately caused by the negligence of City or its employees.
City agrees to indemnify, protect, and hold NorthWestern and its directors, officers, employees,
representatives and agents harmless from and against any and all third party actions or causes
of action, claims, demands, liabilities, loss, damage, injury, suit, proceeding, judgment, cost, or
expense of whatever kind or nature, including but not limited to reasonable attorneys' fees,
arising from or as a result of any negligent incident, act, action or omission of City, in connection
with, or incidental to the relocation of the Power Pole except to the extent such loss, cost, liability,
or expense was proximately caused by the negligence of NorthWestern or its employees.
The indemnifications obligations herein survive the expiration or termination of this Agreement
This Agreement shall inure and be binding upon the successors and assigns of the parties
hereto. If any portion of this Agreement is held to be void or unenforceable, the balance will
continue to be effective. This Agreement may be executed in counterparts, which Logelher
constitute one instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first above written.
"City"
City of Bozeman
2
"NorthWestern"
NorthWestern Corporation d /b/a
NorthWestern Energy
By ;?p~
Name f.tt:~ (• cl"-I &lf~v:So..t..)
Title {) ,P u A-+• o." 5 1111'\-..V ...,_..,c / , )
Service Agreement No. 782