Agmt 2004 ABAG Power - Laserfiche WebLink

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ABAG POWER retained NCPA to act as the scheduling coordinator for the Electric Program. NCPA also served as scheduling coordinator for its own members. The Deregulated Market required electric aggregators to deposit funds into two escrow accounts, one with the ISO and the other with the PX. (The latter deposit was only required if the electric aggregator purchased energy from the PX.) NCPA made such deposits on behalf of ABAG POWER. The ISO and PX drew down on the escrow accounts to pay for monthly energy (PX), if any, and electric grid service charges (ISO). The escrow deposit funds were maintained at a level sufficient to pay for 90 days (estimated) worth of energy and ancillary service charges. ABAG POWER paid NCPA the funds necessary to maintain the escrow deposit funds at the required levels. The amounts in the funds were held by NCPA in trust for ABAG POWER. WIND UP PLAN Upon the suspension of the Electric Program, ABAG POWER's billing agent, APS compiled charges attributed to Member accounts. This data indicated that there were service charges for transmission and other services from PG&E (UDC Charges) that had not been invoiced to ABAG POWER in the approximate amount of Three Million Three Hundred Thousand Dollars ($3,300,000). ABAG POWER also experienced aone-week period in August 2000 during which it did not purchase electricity for the Members due to unstable market conditions. Members continued to receive power. ABAG POWER has not been invoiced for the costs of the energy consumed during this period. ABAG POWER estimates this cost to be approximately One Million Four Hundred Thousand Dollars ($1,400,000) (based on load profiling and prevailing energy costs). Initially, ABAG POWER retained the funds it held in its own accounts to pay for the uninvoiced UDC Charges and energy charges, and to pay ongoing wind up costs. ABAG POWER .has concluded that: (a) some of the uninvoiced UDC Charges were included in the Direct Access Credit calculation (see below), (b) the balance of the uninvoiced UDC Charges have not been, and may never be invoiced to ABAG POWER (for further discussion see Attachment D), and (c) the energy charges have not been, and may never be invoiced to ABAG POWER (for further discussion see Attachment D). Based on the foregoing, ABAG POWER is concluding the wind up of the Electric Program without settling the potential liabilities for UDC Charges and energy described above. Further, ABAG POWER has concluded that the funds held by NCPA will not be released in the foreseeable future (see below). Therefore, ABAG POWER is concluding the wind up of the Electric Program without having received all of the funds held by NCPA in trust for ABAG POWER in the ISO Escrow Deposit and the PX Escrow Deposit. Finally, ABAG POWER has settled its claim against PG&E for the Direct Access Credits (see below). ABAG POWER is distributing the funds from the settlement as part of the wind up. 2 Wind Up Agreement-Attmt B- v 18 4-28-04 cln