Staff Reports - East Bay Municipal Utility District

Sacramento Municipal Utility District Facilities Charge Agreement
March 12, 2013
Page 2
District staff met with SMUD to seek an amicable resolution to the Clay Station Pumping Plant energy
services charges. District staff proposed that SMUD bill based on the 5.0 MW of needed capacity instead
of the installed capacity of 10.5 MW. SMUD agreed to the District's proposal contingent on EBMUD
agreeing to pay for the installation of load limiting equipment at the Clay Station Pumping Plant to ensure
that the District would not use in excess of 5.0 MW.
Both parties have agreed that this agreement is a complete resolution of any and all claims arising from
the dispute and that further claims will not be raised. Furthermore, the District agrees to indemnity,
defend, and hold harmless, SMUD, its directors, officers, agents, and employees against all claims,
expenses, and liabilities asserted against SMUD by any third party arising from or related to the billing
issues or the terms of the agreement, including any damage caused or related to an event where electricity
demand exceeds the District contract installed capacity value.
FISCAL IMPACT
With the implementation of this agreement, the District will owe SMUD $219,716 in retroactive charges
for the billing period from March 2010 to February 1, 2012 instead of $439,433. In addition, SMUD
agreed to base future billings on the 5.0 MW of needed capacity, which will save the District about
$180,000 per year. Funds for the retroactive and the monthly energy services charges are included in the
FY13 budget.
ALTERNATIVE
Do not execute this agreement. This is not recommended, because the negotiated agreement represents a
fair resolution of EBMUD and SMUD interests and a significant cost savings to the District.