Agmt 2004 ABAG Power - Laserfiche WebLink

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ATTACHMENT B BACKGROUND The Members formed ABAG POWER to operate, among others, the Electric Program. Each Member agreed to pay its share of all costs associated with the Electric Program and appointed ABAG POWER as its agent for the purposes of implementing the Electric Program. The Electric Program operated under rules promulgated by the California Public Utilities Commission (CPUC), the California Independent System Operator (ISO), the California Power Exchange (PX) and the conventions and practices established by each of the aforementioned entities and by PG&E pursuant to AB 1890 ("Deregulated Market"). The Electric Program provided electricity to accounts specified by each Member under the JPA and DA Agreement as defined in the body of the Wind Up Agreement to which this document is attached. ABAG POWER is a separate legal entity under the JPA. Each Member is represented on the ABAG POWER Board of Directors (Board). ABAG POWER continues to operate a natural gas aggregation program. All program decisions are made under the policy direction of the Board or the Executive Committee of the Board. ABAG POWER used the following resources from the described entities in order to implement the Electric Program: (a) electrical energy from various generators and brokers, (b) distribution and other services from PG&E, (c) electric grid services (reliability and control) from the ISO, (d) schedule coordination (as described below) from NCPA, (e) billing services from Arizona Public Services (APS), and (f) administrative and support services from the Association of Bay Area Governments (ABAG). In addition, ABAG POWER procured occasional services (not relevant to the wind up of the Electric Program) during the operation of the Electric Program. Occasional services included, but are not limited to, financial auditors, attorneys, electric meters sales and installation and meter reading services. ABAG POWER paid for the resources described above with payments made by the Members. In order to maintain cash flow liquidity, Members funded Working Capital reserves for ABAG POWER through both their monthly payments for electricity and through Working Capital "calls." 1 Under the Deregulated Market, all electric aggregators were required to pay for ancillary electric services (transmission and distribution costs, system reliability services, etc.) through the ISO. In addition, energy purchases made from the PX required certain security deposits be maintained. The PX and the ISO required such payments be made through a recognized "scheduling coordinator." 1 At the beginning of the program, ABAG POWER billed Members on an estimated "levelized" schedule that included amounts necessary to fund a working capital reserve. This methodology was later abandoned in favor of a monthly bill based on actual expenses and a separate series of calls for working capital contributions from the Members,