§ 158-775. Potential purchases from, sales to other utilities, nonutility sources.

(a)

The utility shall identify and fully describe all power purchase and sale options, both firm and nonfirm, which are likely to be available to it for all or part of the 20-year planning period. The utility also shall fully describe each major power purchase, sale, or exchange on the system to the extent that such resources affect the resources available to the utility. Each major new commitment for purchase, sale, or exchange of power must be documented and justified as a cost beneficial resource for inclusion in the utility's least-cost resource plan in a manner consistent with the screening of other supply-side resources as set forth in section 158-776(b).

(b)

The utility shall perform an initial screening utilizing the screening test for all purchase and sale options to eliminate those which, upon preliminary evaluation, are not cost-effective in relationship to other available supply-side resources. If the utility eliminates any purchase or sale option, each such option shall be identified, and the reason for rejection shall be fully explained and justified.

(c)

The description of each potential or existing purchase, sale, or exchange of power from or to another utility and/or nonutility source shall include, but not be limited to, the following:

(1)

The nature of the purchase or sale (e.g., firm capacity, summer only);

(2)

The amount of power to be purchased, sold or exchanged;

(3)

The contract price;

(4)

Requirements to improve its generating and/or transmission system, associated costs, and timeframe. Such description of facilities and costs shall be made in a manner consistent with the description of new generating facilities as set forth in section 158-776(c);

(5)

Timing and duration;

(6)

Constraints caused by wheeling arrangements, whether on the utility's transmission system or on an interconnected transmission system, or by other contract terms or separate interconnect agreements.

The utility shall provide transmission power flow studies documenting the adequacy of the existing transmission system, or the modifications required to the existing transmission system to support the purchased power transfers or wheeling arrangements. The transmission studies shall include a sufficient portion of the regional and system transmission facilities to reasonably represent transmission system problems and solutions.

(d)

To the extent that any coordination or pooling agreements exist between the utility and other utilities or power pools, or any coordinating organization, or are under consideration, the utility shall describe those agreements and provide the following:

(1)

The name of the parties to each agreement, identifying the role of each party;

(2)

The Federal Energy Regulatory Commission, Public Service Commission, or city council docket or file number, if any, associated with the agreement;

(3)

The commencement and termination date of each agreement;

(4)

A summary of significant provisions of each agreement, and the effect of the agreement on the utility's peak demand requirements.

(Code 1956, § 52-354(c))