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00-048 ABAG PowerCORE NATURAL GAS SALES AND AGGREGATIOr1 AGREEMENT By and Between ABAG POWER anal City of Cupertino Ame~~ded July 1,1999 For service within the territory of Pacific Gas & Electric Company 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 I:\AllStaff\ICENNETHM\P3UC\Natural Gas\CoreAgg Agr Amd 99.doc 2 ~'/Z~jf~ Account Number