Other contracts
The Dashiell Switchyard Agreement is a contract with Dashiell Corporation for design, engi-
neering, procurement and construction, including materials, equipment, and commissioning
and testing of the switchyard transmission lines on the site of the Union Power project. A sim-
ilar contract for the Gila River project was signed with GE-Hitachi HVB, Inc.
The El Dorado Willbros Gas Pipeline EPC Contracts with Willbros Engineers Inc. pro-
vide for the design, engineering, procurement, installation, construction, startup and com-
missioning of a pipeline to transport natural gas from the Sharon Compressor Station in
Claiborne Parish, Louisiana, to the Union plant, on a lump-sum, turnkey, fixed-price basis. A
similar contract with Willbros provides for the delivery of natural gas from existing El Paso
Natural Gas pipelines in Maricopa County, Arizona, to the Gila River plant.
The Entergy Payment Agreement between UPP and Entergy Corporation provides for the
design, ordering, purchase and construction of an electrical substation, distribution circuit,
and associated facilities to supply electric service to UPP’s water intake pump station near the
Ouachita River and temporary power to its construction site for the Union plant.
The Raw Water EPC Contract with Milam Oil Corporation provides for the design, engi-
neering, procurement, installation, construction, startup and commissioning of a raw water
supply system on a lump-sum, turn-key, fixed price basis. That system is used to provide clar-
ified water from the intake structure near the Ouachita River to the Union plant and to return
cooling-tower blowdown water back to the river. A similar contract was signed with the Felix
Raw Water System for the Gila River plant.
The Willbros Intake Structure EPC Agreement provides for the design and construction of
the intake structure used in transporting water from the Ouachita River to the El Dorado plant.
Under the APS Facilities Construction Agreement, Arizona Public Service (APS) agreed
to construct, own and operate various facilities to allow the Gila River plant to interconnect
with the APS’s transmission system.
Interconnection Agreements
UPP entered into the Entergy Interconnection Agreement to transmit electricity into the
Entergy system and the Gulf States Interconnection Agreement to receive natural gas from
the Trans-Union pipeline. Other agreements were made to connect the Union plant pipeline
to the Tennessee Gas and Texas Gas systems.
Fuel transport agreements
UPP entered into both firm and interruptible fuel transport agreements with Gulf States,
Tennessee Gas and Texas Gas; a gas storage agreement with Tennessee Gas; and balancing
agreements with Gulf States and Texas. The balancing agreements provide for adjusting the
flow of natural gas by up to 5 per cent on a given day to compensate for operational imbalances.
UPP also entered into the Tennessee Gas Credit Agreement, under which it was required
to demonstrate its creditworthiness by meeting a debt-to-total-capitalisation ratio, a debt-ser-
vice coverage ratio and a net worth requirement 90 days before commencement of service. If
the defined minimum thresholds were not met, Tennessee Gas could require either a
US$750,000 letter of credit or prepayment for 90 days of service.
Gila River entered into firm transport, interruptible transport and balancing agreements with
POWER PLANT