Resolution No. 2574
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9 THE CITY COUNCIL OF THE CITY OF VERNON RESOLVES AS FOLLOWS:
RESOLUTION NO.
2574
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERJN'ON
FINDING AND DETERMINING THAT THE PUBLIC INTEREST AND
NECESSITY :a.EQUI:a.E THE ACQUISITION.OF CERTAIN ELECTRIC
TRANSMISSION UNES, METERING FACILITIES, TRANSFORMERS
AND APPURTENANCES AND OTHER RELATED PROPERT.IES USED
OR USEFUL IN SUPPLYING ELECTRIC ENERGY TO THE CITY OF
VERNON AND CERTAIN ELECTRIC CONSUMERS AND CUSTOMERS
WITHIN SAID CITY, AND THE INHABIT ANTS THEREOF, AND THE
ACQUISITION THEREOF .BY THE CITXOF VERNON BY EMINE,NT
DO MAW PROCEEDINGS OF SAID PROPERTIES OWNED BY SOUTHERN
CALIFORNIA EDISON COMPANY.
SECTION 1:
It is hereby f.ound and determined that the
public interest and necessity require the acquisition of certain properties
used or useful in supplying electric energy to the City of Vernon and certain
electric consumers and customerS within said City, and the inhabitants
thereof.. which properties are more specifically described hereafter.. to be
used for and necessary for:
(1) The transmiasion and distribution of electricity
for the purpose of furnishing .and supplying electric ligh.t..
heat and power to the City of Vernon and certain electric
consumers and customers within aaid City, and the
inhabitanta thereof; and
(2) The proper development and control of such use
of such electricity, at this time, and the future proper
development and -control thereof,
as a part of the electrical system owned and operated by th.e City of Vernon
for furni.shin.g and supplying electrical energy to said City and certain
electric consumers and customerS therein, and th:e inhabitants. thereof.
SECTION 2:
The properties to be acquired by the
City of Vernon for said purposes are descrlbedas follows:
All of the right, title and intereat of Southern California
Edison Company and any and all persons.. firmsororganiza-
tionsa.ssoclated with said Soli; he rn California .Edison Company
in such ownership, whether as: lien holders, trustees or
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otherwiae, in and to the following:
Item 1: The 66,OOO-volt transmission and service
lineashQwn on maps numbered 1 through 19, inclusive"
attached to Resolution No. Z574 of the City Council of the
City of Vernon, including poles, insulators, conductors,
fixtures and oth.erappurlenant items. compriiring the complete
transmission and service lines shown on said map.a.
Item 2: The complete metering facilities used or
useful in measuring. electric energy s.old and delivered to
Bethlehem Steel Company.
Item 3: The 66, OOO-volt facilities serving Steel Casting
Company" including transformers, awitches and other appurten-
ances and th.e complete. metering facilities used or uSeful in
measuring .eleclric :energy sold and delivered to said Steel
Casting Company.
Item 4: All commercial and engineering maps and
records of aaid Southern California Edison Company relating
to the property to be condemned" including customer service
and billing records. used or useful in serving said Bethlehem
Steel Company and Steel C.as.tingCompany.
.Item 5: All rights of way, easements, interests"
licenses, franchises, and ri~ts pertaining to any one or
all of the matters referred to in Paragraphs ~ 2, 3 and 4
above, of said Southern California Edison Company, pro-
vided however, that the property to be -condemned does not
include any franchiae righ.ts, transmission lines or oth.er
property used hy Southern California Edison Company in
serving the Metropolitan Trans.it Authority and for the
tranamisaion of electric energy through the City of Vernon
to a point or points of delivery outaide the City of Vernon.
SECTION 3:
,
It is he reby found and determined by the
Cit.y Council of the City of Vernon th.at the taking of the properties described
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25 ATTEST:
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1 above is nece.aaary for the aaid public utilitybusinesa and activiti~s of the
2 said City of Vernon.
SECTION 4:
Said public utility properties are located
and planned in the Inannerwhich will be most compatible with tb..e greateat
public good and th:e least private injury.
SECTION 5:
The City Attorney of the City of Vernon.
and the law firm. of ,D.arling, Shattuck, Hall and Call as Special Counsel
to the City of Vernon, are hereby directed to bring an action in the Superior
Court of the St.ate of California for the County of Los Angeles in the name
of the City of Vernon to condemn by eminent d<.Fmain proceedings the
properties described in Section 2 of this Resolution.
SECTION 6:
For the purpose of bringing such an action,
the said City Attorney and said Special Counce! are hereby empowered to
incur in the name of and on behalf of said City, all obligations and expenses
incidental thereto.
SECTION 7:
,
Tb..e City Clerk of the City of Vernon shall
certify to the passage of this Resolution, and thereupon and thereafter th::e
same shall be in full force and effect.
.ADOPT~D and APPROVED this 7th day of August, 1962.
ernon
~
City Clerk
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STATE OF CALIFORNIA. )
) SSe
COUNTY OF LOS ANGELES )
4 I, F. A. ZIEMER, City Clerk of the Cltyof Vernon, do hereby
5 certify that the foregoing resolution, being .Resolution No. 2574, Was
6 duly adopted by the CityCQuncil of the City of Vernon, and approved by
7 the Mayor of s.aid City, at a regular meeting of the CityCouncU held on
8 August 7, 1962.
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installmentS.on or before the 15th day of each of the succeeding
severt ntonths, receipt of the fiist six instdlinente of
which 1s acknowledged by Vernon. Vernon and Edisort do hereby
prolO1Se. agree.covenartt and contract as follows:
1. Operation of the Vernon JUect:t'1cSntelQ. Dut-log
the terinof this Agreement. EdisonshaUopera.te the VernOn
ElectriC3 System :for and ort behalf. of Vernon. subject to and in
accordance with the terms and prov1Sions of this Agreement:.
Whenever the term "Vernon Electric Systein" is used in
this Agreement, it is intended and shall be construed to mean
and include (i) Vernon's electric generating plant: and entire
electric transmission and distribution system as suchfaci11.-
ties existed on April 3. 1962, (ii) the electric trartsmission.
distribution and cOD:l1l1\lnication facilities described in E:xhibit
"B" as suchfacUities existed on April 3, 1962, (iii) all
alterations, extensions, additions and improvements in and to
the facilities described in (i) and (11) made by Edison pursuant:
to this Agreement and (iv) all other additional electric generat-
ing, translQission and distribution facilities acquired by Vernon
during the terlQ of this Agreemertt and located within the
corporate 11.mits of the City of Vernon at the time of acqu.:f..-
sition. The term "Vernon Electric System" does not include
Edison's Fruitland Substation, Edison's transmission, diStd-
butionan.~ .Qoinnumicationfacil1t:l,es used in serving Edison
QUstollle:rs olJtside the corporate 1:lmits of Vernon, or Edison's
diatr1.bution l$ncs in Vernon used to serve the~tropolitan
'tt~n~it Authority, nor any part of .the electric syste1'4owned
and operated by Edison in territory or terr1.toriesannexed
City of vernon at any time subsequent to Janua1:'Y 1,
that shquld title to any of such
ties so acquired shall thereupon become an integral part of
th~ "Vernon Electric System" and subject to the provisions of
this Agreement.
2. Term. Unless sooner terminated as hereinafter
provided, the term of this Agreement shall be the PElriod of
fifteen (15) years, commencing April 3, 1962, and ending April
2, 1977.
3. Duties and Obligations of Edtson. During and
throughout the term of. this Agreement, Edison, as operator of
the Vernon Electric System for and on behalf of Vernon, shall;
(a) Provide adequate, safe, proper, efficieIlt
a.nd reliable electric service to all customers, present a.nd
future,of the Vernon Electric System.
(b) MaintaiIl the Vernon Electric System iIl first-
class operating and physical condition; provided, however, that
Edison shall not be required to operate the VernoIl Diesel
Generating Plant unless requested to do so by Vernon and then
only in such manner and at such times as Vernon shall request;
provided further, however, that should the Diesel Generating
Plant be operated or placed on stanel-by by Edison, other than
at Vernon's request, then Edison shall compensate Vernon there-
for as provided tnHExhibit "D" attached hereto and made apart
hereof.
(c) Make all such dterations, exteIlsions,
additions and improvements in and to the Vernon Electric
System, including, without limitation, overhea.d a.nd under-
gr()\1Ild distributing systems, street lighting systems,.
distributing stations, consumer .stat:l,ons, trcmsformers,
metElrs and services, as shall from time to time be required
-3-
-_=7,.:';"~:.:I_~~"._:_
and teliab~e mannet the demands and tequitements of Vernon for'
any and all City purposes and of all customers, both present'
and future, of the Vernon li:lectdc System; all such alterations,
extensions, additions and improvements to be so designed and
constructed as to conform to the standards of Vernon, insofa;r
as such standards are applicable, and themate1'iala and equip-
ment used in the construction and installation thereof to be Of
a quality at least equal to that now in use in the Vernon
'Elect:ric System so that a uniform design and type of constX'u~-
Hon and installation shall pJ;'evaU throughout the entite'System,
it being agreed that except as required by emergencies and
except for work done in the normal and toutine day to day
operation and maintenance of the Vernon Electric System nO
alterations, extensions, additions or improvements shall be
made to or in the Vernon Electric System except with the
consent in writing ,of Vernon first had and obtained. All
rights of way and easements required in connection therewith
shall be obtain'ed by Edison, as operator for Vernon, and shall
be taken in the form of grants to the City of Vernon.
(d) Furnish all such labor, supervision, equip-
ment, matedals, supplies, tools, transpottation :!lnd services
of whatsoever kind or nature as shall from time to time be
required or necessary to carry out the terms and provisions
of this Agreement, including, without limitation, maintenance
of such office and field staffs, construction and ope;rations
he4dquarters, warehouse facilities and commercial ()fficesin
Vernon as shall berequiredot necessary to meet the needs
and J;'equirements of Vernon and of a11 customers, bothpresertt
and fu.tu;re, of the . Vernon Electric System~ No usedmajQr
~~--~
equipment ~hll11 be moved toVernort oX' ac.qu:lted
~--, ~ '''''~'-- --~~ ~ ----~
~__-c_~~~_____~_________--C--.____________'__'.
for use or used in Vernon without Vernon's approval.
'--~ ........-.-. - -- ---------? ----- ~-..'~
(e) Furnish at least annually to Vernon (i) re~
leases in form satisfactory to Vernon of all equipment,
materials, supplies and other property used, constructed or
installed by Edison in Vernon pursuant to this Agreement from
the liens or purported liens of Edison's corporate trust deeds
and mortgages outstanding from time to time, including trust
deeds and mortgages of any and all of its predecesso~ cor-
porations, and all other liens and encumbrances or purported
liens and encumbrances of every kind, nature or description
whatsoever and (ii) proper instruments satisfactory to Vernon
evidencing the transfer of title to Vernon of all the property
covered by each such release.
(i) Perform all accounting, billing and collec-
tion functions in connection with energy sales to customers of
the Vernon Electric System, in accordance with the procedures
set forth in Exhibit "A" attached hereto, and as otherwise may
be. necessary or proper. Standard statements and records of
revenue billed, collections made, customers' deposits and past
due accounts shall be maintained by Edison and copies thereof
supplied to Vernon. Edison shall perform periodic audits on
the energy billings to Vernon customers to insure their
acc~racy.
(g) Account and pay over to Vernon all moneys
and property of any and every description received or collected
by Edison from or in connection with the distribution or sale
of electric energy to customers of the Vernon Electric Sy4'ltem,
and including all minimum charges, service charges, charges
for rental of equipment, advances and contributions for oon-
struction and for :l,ristallation and remova.~ of temporary
fa.o:l.lities and all other receiptS of every kind, nature and
-5-
-'-----__~..::....____,___--.---~-----.-.-----~------------.-~..----.--'---____O-.--...___~~..___
description whatsoever received from Vernon customers on acc<>Urtt
of public utility services rendered by Edison as operator of the
Vernon Electric System for Vernon.
(h) Furnish to Vernon full, detailed and current
accountings and reports, with supporting data covering all ac-
tivities engaged in and work done by Edison in Vernon pursuant
to this Agreement, including (i) all accountings and reports
specifically required under the provisions of this Agreement ana
the procedures set forth in Exhibit "A" attached hereto, (11)
monthly reports of all extensions, additions, alterat!ons and ~
improvements constructed or installed with full detail as to the
cost of all labor, equipment, materials and supplies expertded
thereon, (i11) monthly statements of all the moneys and property
referred to in subparagraph (g) received and collected by Edison
for the account of Vernon during each month, and (iy) monthly
statements showing the total number of kilowatt hours of elec-
tric energy transmitted or distributed from the Vernon Electric
System during each month, the total number of such kilowatt
hours accounted for by metered sales to consumers or other use
and the total number of such kilowatt hours unaccounted for.
'(i) Make electrical measurements and reports as
requested by Vernon providing operational data respecting the
. Vernon Electric System.
(j) Keep and maintain all books, records and
documents required or necessary, to show fully and properly
all its operations and activitfes pursuant to this Agreement,
which books, records and docume,nts shall at all reasonable
times be open .to inspection by authorized representatives of
Vernon.
(k) process all Joint pole authorizations and
-6-(
1~_-,-~_~_~___~.___~__~~_~._____._.__~____~_________--------,-__~_~___.____...--~~_
.related recordst except bills of sale, required of VerrtOn asa
member of the Southern California Joint Pole Committee. Vernbn.
however, shall be responsible for the accounting, billing and
payment of all joint pole costs involving the Vernon Electric
System.
(1) Perform fully all of the terms, provisions,
covenants, obligations and duties on its part to be performed
under this Agreement and under the procedures set forth in
Exhibit "A" attached hereto.
4. Control by Vernon. Notwithstanding anything to
the contrary contained in this Agreement, all actions and ac-
tivities of Edison and all work done or required to be done by
Edison in carrying out its duties and obligations under this
Agreement shall at all times during the term of this Agreement
be subject to control and direction by Vernon.
5. Compensation of Edison. During the term of this
Agreement, Vernon shall pay to Edison each month, as compensa-
tion for the performance by Edison of the duties and obligations
undertaken by it under this Agreement and for its costs and
. expenses incurred in connection therewith, an amount computed as
provided in Section III of Exhibit "A" attached hereto, payment
thereof to be made in accordance with the procedures set forth
in Section I, Subsections B through D, of said Exhibit "A".
6. Lease of Edison Facilities. Edison hereby leases
to Vernon and Vernon hereby leases from Edison, pending acqui-
sition of title thereto by Vernon, those certain added electric
transmission, distribution and communication facilities owned
by Edison in Vernon described in Exhibit"B" attached hereto
and herein called "leased added facilities". In conalderation
thereof, Vernon shall pay to Edison as rent for such leased
added facilities an amount per month equal to 1-1/4 percent
-7-
Sheet No. 2733E), such rental to commence as of Apr:U 3, 1962,
and to end on the date Vernon acquires title to such leased
added facilities; provided, however, that said lease shall in
any event expire upon the termination of this Agreement, it
being understood and agreed that prior to the date Vernon
acquires title to said leased added facilities, the 1-1/~ per
cent monthly rental charge paid by Vernon to Edison as herein
provided shall be full compensation to Edison for the rental of
said leased added facilities, including all costs and exp~nses
incurred by Edison in connection with the installation, opera-
tion, maintenance, replacement, removal and/or repair of said
leased added facilities as part of the Vernon Electric System
during the term of said lease, and all such rental paid and
all such coats and expenses shall be excluded from the account-
ing prescribed in Section III of Exhibit "A" attached hereto
during the term of said lease.
7. Assignment of Customer Contracts and Deposits.
All energy contracts between Edison and customers served from
the Vernon Electric System, existing on the date of the
execution of this Agreement, are hereby transferred and
assigned to Vernon. All other contracts between Edison and
such customers and all advances, contributions and other
deposits held by Edison in connection therewith, existing on
the date of execution of this Agreement, shall be promptly
transferred and assigned to VernOn by separate instruments
effective as of the date, of execution thereof; Pt'ov:lded,
however, that :It is understood and agreed that all costs of
construct:lon incurred'pursuant to contracts for electric
factlit:les entered into On or prior to April 2, 1962, have
heretofore been paid for by Vernon and that all advances
-8-
-........~. ""'-......""'.......- _1/ ___N'_.. --~ --.-.-..._--.
8. Stores Inventories. Stores inventories of equip-
meJ.'lt. materials al1ld supplies acquired or issued by Ed~son for
use in the operation and mainte~ance of the Vernon Electric
~ystem and the construction and installation of a1teratiol1ls.
e~tensions, additions and improvements therein and thereto,
e~cept transformers. meters, Vernon Diesel Generating plant re-
pair parts. diesel fuel and gasoline and oil acquired for other
than automotive equipment use. shall be owned by Edison. Tra,nll-
formers, meters, Vernon Diesel Generating Plant repair parts.
diesel f~e1 and gasoline and oil acquired for other than aUto-
motive equipment use . staall be owned by Vernon. Edison staall
maintain both the inventories owned by Edison and the inventories
owned by Vernon. Losses, if any, arising from obsolescence shall
be borne by Vernon. Losses, if any, arising from adjustments of
book inventories to periodic physical inventories shall be borne
by Edison; provided, however, that any loss or gain on Ed~on-
defined JIB" items as between the net usage thereQf as determined
by periodic physical inventories (which shall be taken not less
frequently than once each 12 months) and the charges made to
work orders for such items based on Edison's prevailing system
engineering standards shall be charged or credited. as the case
may be. to Vernon. During the term of this Agreement Vernon
shall keep on deposit with Edison, in accordance with the
procedures set forth in Section IV of Exhibit "Aft attached
hereto, an amount which from time to time shall be appro~imately
equal to Edison's investment in the stores inventories owned"~
~~a and maintained by Edison for Vernon.
-9-
, ,
-----------~-------_.~._----------,-_._--~------------------~~----~
9. :purchase. of Energy. During the term of th:f.s
Agreement, Vernon agrees to purchase from Edison and Edison
agrees to selland supply to Vernon, at rates and conditions
as prescribed from time to time in applicable published re-
sllle tariffs of Edison, aU electric energy required to meet
and supply the demands from time to time of Vernon and all
customers, both present and future, of the Vernon Electdc
System; provided, however, that this paragraph 9 shall not
apply to nor shall Vernon be charged 'for electric energy
supplied by Edison for Vernon City Hall pUrposes pUrsuan~ to
Ordinance No. 503 of t~e City of Vernon or for electric energy
generated by operation of the Vernon Diesel Generating Plant
under and pursuant to paragraph 6 of Exhibit "D".
Edison shall install at its Laguna Bell Substation
on or before January 1, 1963, at its own expense such meter"
ing and other facilities as are required to provide a single
point of delivery and metering for the electric energy sold
and supplied by Edison to Vernon. Edison shaH at its own
expense at least once each six months test the accuracy of
such metering facilities and shall give Vernon prior notice
thereof in sufficient time to permit Vernon to have a repre-
sentative present at each such test.
Billing and payment for electric energy sold and
supplied by Edison to Vernon pursuant to this paragraph 9
shall be in accordance with the procedures set forth in
Section I, Subsection A, of Exhibit "A" attached hereto.
10. Insurance. Each party shall, at its own cost
and expense, maintain adequate limits of Public Liability
Insurance (Bodily Injury and Property Damage), including
Contractual and Contingent Liability Insurance, throughout
.the term of this Agreement, to protect against their
-10-
damage to prop~rty. Evidence of such adequate insurance in~
cluding Contractual and Contingent Liability Insurance here~
under shall be submitted by each party to the other and shall
be subject to approval by the other party. Each party shall
furnish the other with a Certificate or Certificates of such
insurance.
Vernon shall\llaintain adequate Fire Insurance with
Extended Coverage Endorsement and Vandalism and MaU.cioue
Miechief Coverage covering all of the buildings and improve~
ments, now or at any time during the term of this Agreement,
located in or upon the Vernon City Substation and Leonis
Substation premises and any other similar facilities now or
hereafter existing in Vernon, and including but not limited
to transformers, distribution lines and facilities and meters
in service owned by Vernon and located outside of but within
200 feet of the boundaries of said premises, and there shall
be attached to all such insurance policies a Subrogation
Waiver in favor of Edison. Evidence of adequate insurance
hereunde~ shall be submitted to Edison and shall be subject
to approval by Edison. Vernon shall furnish Edison with
Certificates of such insurance.
Each party shall comply with all applicable require~
ments imposed by the California Workmen's Compensation Law.
11. Indemnification.
(a) Edison shall indemnify and save harmbss
the City of Vernon, its Council members, officers, agents and
employees, and each of them, from and against any ana. aU
cla~ms, demafI1as ,.damages or causes of actionoi any kind,
natl.1re ordescr1ption (and all ePsts and expen~esincident
thereto, incl.l.1ding attorneys' fees) for injuries to persons
-It-,.
or damage to property p~ox:l.mately- caused or claimed to have beert
prox~matelY caused by reason of any act, action, neglect, om~ssipn
or default on the part of Edison or a,ny of its officers, agents,
employees, aubcontractors or persons employed by auch subcon.,.
tractors, e~ther alone or jo~ntly with any third parties, or
resulting from or claimed to have X'esulted fX'om Edison's failure
to exerciae pX'opeX' care in the operation of the Vernon Electric
System oX' from any lien or charge upon oX' attaching to said
System or any part theX'eofaX'~sing by reason of Edison's
operation of the System.
(b) Vernon shall indemnify and save harmless
Edison, its officers, agents and employees, and each of them,
from and against any and all claims, demands, damages or caUlles
of action of any kind, nature or description (and all costs aJ;\d
expenses incident thereto, including reasonable attorneys' felits)
for injuries to persons oX' damage to property proximately caused
or claimed to have been prox~mately caused solely by reaaon of
any act, action, neglect, omhsion or default on the part o.f any
third partles, or on .the part of Vernon or any of its off:l.eers,
a,gents, employees, $ubcontX'l;letors or peX'son$ employed by such
subcontX'actorEI, either alone oX' jointly w:l.th any thirdpart~eS.
12. Destructic;>n or Damage to System. In the event:
of loss, destruction or 'damage to any of the Vernon EleetX'1.c
System caused by ac.c:l.dent, negl1gence, misuse, fire, the
elements, act of Go dot' otheX' casualty, Edison, after f:l,rst
obta.l#~ng vern.on's ~lttenapproval, except in eme~geMies,
8~11 ilIlllediatelY proceedandehereafter continue with due
d:l.1.igenc;:eto completion, to repair such pX'operty or replace
suchpropet'tyso lost, destroyed or damaged with similar
pr.ope:r.ty a,t leastequal;Ln all respects to that lost,
destroyed or damaged. E,,"ceptw1.th respect to losses covered
-12-
and Vandalism and Malicious Mischief Coverage which Vernon has
agreed to maintain pursuant to paragraph 10 hereof, Edison shall
bear the cost thereof if the loss, destruction or damage results
from or is caused by any act, action,neglect, omission Or de...
"fault on Edison's part, either done or jointly with any thi;rd
parties; otherwise such cost shall be borne by Vernon.. If any
SUch loss, destruction or damage, results from oriscaused.by
the joint or concurring negligence of Vernon and Edison, the
cost of repair or replacement ahal1 be borne equally by vernon
and Edison.
13. Termination of Agr~ement.
(a) Vernon shall have the right to terminate
this Agreement by 30 days' written notice to Edison given
within 120 days after the happening of either of the follow;l.ng
events:
(1) Edison should fail, refuse, neglect
or omit to keep, ob~erve or perform any term, provision,
covenant, obligation or duty on its part to be kept,
observed or performed under this Agreement and such
default should not be cured by Edison within 30 days
after written notice from Vernon specifying the default.
(2) Edison should place ~nto effect at
any time, pursuant to Public Utilities Commission order
or otherwise, any tariff schedule or schedules the appli..
cation of which produces a "resale-retail rate level
differential", computed as provided in Exhibit "e"
atta~hedhereto, which is less than 18.0%; provided, how..
ever, that should such event occUl:' and Vernon not elect
to tel:'minate this Agreement then the permissible 'lre$ale--
retail,.rate level differential" llpp~icable to subseCluen~
-13-
differential, not less than 15.0'7., previously resulting
from any tariff change as to which change Vernon had the
r1ght but elected not to terminate this Agreement.
(b) This Agreement shall automatically terminate
upon the happening of any of the following events: Sale of the
Vernon Electric Systelll pursuant to paragraph 14; Edison's being
by any Court adjudged a bankrupt or insolvent; Edison's making
an assignment for the benefit of creditors; or appointment of a
receiver to take possession of Edison's properties.
14. Sale of Vernon IUectr1c System. Vernon shall have
the right and option, at any time upon thirty (30) days' written
notice to Edison and in compliance with applicable laws, to sell
to Edison, and Edison agrees thereupon to buy from Vernoh, the
entire Vernon Electric System as it exists at the time of
Vernon's exercise of such right and option at and for a price
equal to the fair value of the System at that time. SUch right
and option on Vernon's part, and such obligation on Edison's.
part, shall not apply to the Vernon Diesel Generating Plant which
shall not be considered a part of the Vernon Electric System fot
suchpul;pose, it being \l.nderstood and agreed that Vernon. may
the Vernon Diesel Generating Plant at any time without first
offering it to Edison.
Should Vernon dur~ng the term. of this Agreement
des;f.re to sell the Vernon Electdc System with or without
the Vernon Piesel Generating Plant to I;lny person or entity
other tMn Edison, Vernon shall first offer the System to
Ediaoh atasp~cified.sales 'priqfa and terms of payment. If
Edison failstq accepe'?s\l.ch. of.t'~1i Within 30 clays after
t'ec~:l.ptof. .Wri t ten notice t:li~t'eof, or for any reason Vernon
and Ed:l.son are unable to agree upon a sales price and terms
-14-
person or enti~y at a sales price not 1es$ th$n the price
o~fered to Edison and on terms of payment no mor. ~avorable
than offered 1::o~dison.
15 .Wai ver. ~xcept as provided here:f,l'h no waiver,
,
benefit or privilege accorded or conferred upon eithe.rparty
by the other snall be construed or held to vest any contractual
?""ight in the benefited party, by eiltoppel 0;1:' ot1:lerwi.se. No
waiver Qf a breach of any term or proviSion of this Agreement
shall be const~ed or held to be a waiver of any other breach
\l)f the same term or pl:1)visioll or Qf any other term or pravishn
~ereof, Or a waiver or acquiescence in or consent to any further
ot s~cceeding breach of the same or any other term or provision
hereof, and following a waiver no notice nee~ be g1ven tnat s1::X'ic1::
c~mpliance with the teX'ms and provisions of this AgX'eement will
thereafter be X'e~ired, s~ch notiCe being hereby waived by each
of the pa:!:'tie$.
16. NQnassi,nabiUtl. This AgJ;'eelllent: is not auign"
able or transferable, in whole or in part, by either party or
by operation of law.
17. Notices. All notices frOlll Vernon to Edison shall
be sent by United States mail, postage thereon p~epaid, addre.~:
\~_,...~~.;_;_~, ..c.' ,"
to SQuthern Califorlilia Edison COlUpany, Post O:t:fi.ce Box 351, Los
Angeles 53, Califorqia. All notices from Edison to Vernon shall
be sent by United States mail, postage the~eoll prepaid, addressed
1;0 the C1ty of Vernon, at Ve;non City< HaU. Vernon, CalUQrnia.
Serv:f.ce o;f nQt;lce as a.foresa;ldshal~ be d~ui\med oomplete upon
deposit in the United States mail.
\ :L8. 'rhe '.Itesale rate a~d re1aeed tadU sQhed\lle prQvi..,
': .1.... ..<Io~ ..\I1.h .lo..ri. .....gy 10 ""l'I'U.4 hy !41aan .0 V.......
;
.'....;#J.,"l
..~
..;1.5..,
{.' pursuant to paragraph 9 ~f this Agreement shall at all times
be subject to such changes or modifications by the Public
I Utilities Commi8l9ion of the State of California as said
j
I Commission may. from time to ti~e. direct in the exercise of
I
I its jurisdiction.
1
IN WITNESS WH~REOF. Vernon and Edison have caused
this Agreement to be executed by their respective officers
in duplicate thereunto duly authori~ed this 1st day of
November
. 1962. 4S of April 3. 1962.
CITY OF VERNON
By
R. J. FURLONG
Its Mayor
(Seal)
By
F. A. ZIEMER
Its City Clerk
SOutHERN CA~IFORNIA EDISON COMPANY
By
T. M. McDANIEL, Jr.
~xecutive Vice President
(Seal)
Attest M. V. RILEY
Assistant Secretary
APPROVED thislst day of
November . 1962
BRlICERENWICK
Vice Presid~nt.ahd.Sen:f.or C9uIlse1
-16...
EXR;IlU'l' "A"
statement()f Cett:ainAgreed.Accounting Procedures F()t'
lmplementing the Operating AsreementMade and Entered
Into as of At>d.J. ,).:L962,Between Vernon and Edison
(Hereinafter Referred to as the "Agreement")
SEctION I. Accountingst() Vernon.
A. Meter readings for energy deliveries to Vernon
shall be taken at or about the end of each month. On or
before the 10th day thereafter, Edison shall submit to VernQn
statements for energy delivered during the period since the
last previous reading, which statements shall be paid by
Vernon within 30 days after receipt. From and after Edison's
installation of fac:Uities providing a single point of
delivery and metering for such energy deliveries, all metel:'
readings shall be adjusted in accordance with generally
accepted engineering standards to compensate for computed
transmission losses from said single point of delivery to the
Vernon City limits. Prior thereto, billings shall be based Qn
Oleter readings at existing points of delivery in Vernon, and
all such metel:' readings.sha.l:Ll?e adj\1sted in accoX'dance with
generally accepted eng:l.~ee~ing standards to compensate for
cOotp\1ted lQss.es.
B. As of the last claY of each month commencing
Apr:U ,)0, 19(12, Edison shal1s\1bmit an estimated billirigof
thecompensat:l.ori due Ed:lson puX'suant to Section III Qf this
,E~h:lbit ''A'I for operation of the Vernon Electric Sysyem
f:h.tr;l.ngthemonth then ended, which billing shall be !paid by
VerMn with.tn 30 claya Ilfterreceipt.
C.., Withiri 60 clay 13 following such estiinat'ed bi11:1.ng,.
iEdts()l1 ahall aUbmitto Vernqriastatement of the actual
-).-
~~
"A" for the month covered by the estimated billing, separat.ly
stating the charges ~defor.the items specified in Section
III, and including an analysisbyVenion IS account and S\lb..
account elassifications.
D. Paytllents by Vernon of billings under Subsection
B shall be deducted from the statements prepared under Sub..
section C so that the latter shall show the net due to or fr_
Edison. Any amounts due edison, as reflected by such state..
ments issued to Vernon, shall be paid within 30 days from
receipt by Vernon. Any amounts due Vernon, as reflected b1
such statements, shall be applied as a credit against the next
estimated billing undel;' Subsection B.
E. Deposits Or advances, including interest pa.id
thereon, refunded to Vernon customers during any month shall
be billed to Vernon as of the last day of such month and Vernon
shall reimburse Edison for such refunds and interest withln 30
days after receipt of each such bilLing. Each month Edison
shatl notify Vernon of the amount of advances for construction
which are due to be refunded during the following month, and
Vernon shall make such refunds directly to the customers.
F. No payment or acceptance of paytllent by Vernon
shall prejudice its dghtto questlon the correctness of any
statement submitted pyEdtson; provided, however, that Edison
shall not be required to adjust any statenent unless written
cla,1.m.therefo:t:: is presented to Edison .within 24 months f:t::olll.
t;he<close of the calendar year in which the statement was
fit:'st'received by Vernon.
-2-
$EctJ:O~ tl..BUlingsand CoUeetions.
A. .Energy q~111ngs to Vernon customers shall be
.pr;epared by Ed1sonfrom rate schedules alJthorized byVei:'non
prepare and pradess all ather necessary billings.
B. If at any time dUring the term af the Agreement,
Vernan shall change lOr madify its Ordinances Nas. 740 and 741,
which said change or madificatian results in a departure from
$disan'8 rate structures and which creates lOr gives rise ta art
incampatibility with Ec,lisan' s established billing procedures,
Edison and Vernan shall thereupanrenegatiate the percentage
spedfied in Subsection F af Sectian ItI as camplO!nsatian fc)t'
general supervisianand administt'ative services plarformed by
it; pravided, hawever, that the establishment af a unifarnt
discount or discaunts by Vernan Shall nat be deemed to create
lOt' give rise ta any incompatibility; and pravided. further,
hQwever, that any such renegQtiatiQn shall be limited to
.mining the actua1 additi,Qna1 billing cast, if
fram a change lOr madificatian in the rate structure and to
adjusting the percentage in Subsectian F Qnly ta the extent
necessary tQ COver such additional casts, if any.
C. All billings ta Vernoncus.tamers shall bear the
names af bQth Edisan and Vernan, said names tQ appear an the
b:l.llings substantially as fQllows:
SOUTHERN CALIFORNIA EDISON COMPANY
Operatar far the City af Ye~on
D. Customers' depOSits as securit;yfar pa}fll1ertt lOf
bUls, advances fQr canstruction, contributilOns in aid lOf
con8truc~:l.on, and advances forin$taUation and removal of
t~mpqJtary facUities shall bec&'llected by Edisan as 1;'equ:l.J;ed
oJ;'d~eill~d~ecessary.
"""';
E:. Each business day aU callj;}ctions attributable
..3..
to Vernon opetations shall be deposited in a Bank approved by
Vernon in an accoUnt from which Vernon shall have the sole
right to withdraw funds.
F. Edison shall per~orm all normal credit and eo11e~.
tion act:l;vid,es. Unusual credit arrangements shall be subject
to approval by Vernon. Vernon will assume all losses on un-
collected accounts.
G. Refunds of ad~ances and deposits, including
interest when applicable, shall be in accordance ~ith ~dison's
/li established procedures.
SEC'rION III. CODlpensat1otl, Payable to Edison.
The compensation payable to Edison for pet forming
the duties and obligations undertaken by it under the Agreeltlen~
shall be the aggregate of the follo~ing amounts computed on the
basis of the indicated Edison oosts each month (exclud:lng there..
from such costs as ~dison is required to bear under the terms of
the Agreement) and adding the indicated allowances.:
A. Salaries. Wages and Related Expenses.
(1) An amount equal to the salaries and~ages
paid to Edison employees regularly and necessarily assigned to
VernOn operations for normal and overtime hours worked. holidaya,
vacations, sick time and other allowances accorded to all ~dison
Iiltllployeelil for paid absences. eXcept. that any portion ot such /
salaries and wages attributable to work on Non-Vernon operat1Qn.
llhall be exclUded. Such salarhs and wages IIhall be baliled.on
8\.tcb.tates, job classif:lcat:iotiS and groupingll as are in acOorci.,
labor contracts and Company policies. atid
to t:hetotal of suchsalades and wages:
(a) An amount which bears the same tatio'
Edison's total annual system costs for taxes
imposed by governmental authority on ot'
-..... _....__oIIiI ...-0-............ 00f'-...._....___ e,-"'.---.,....J ...,.----"""'...........-- -- ------..- _.~r"--J,""'-:~ J
bears to Edison's total annual payroll, such ratiQ to be
esti~ted annually (to the nearest 1/10 of 1%) based on the
determined system ratio for the preceding calendar year subject
to retroactive adjustment: (to the nearest 1110th of 1%) without
allocation to specific accounts after the close of each calendar
year upon determination of that year's actual system ratio~
0>) An amount equal to 7% of the total of
such salaries and wages, for Operating Department Supervision;
provided, however, that such percentage shall be reduced to and
be fixed at 6% when and if the Vernon Diesel Generating J;'lant
is no longer required to be maintained and operated,
(c) An amount equal to 3% of the Vernon
D~stribution Payroll which represents salaries and wages of
Ediso~ employees regularly and necessariiy assigned to Vernon
,operations, for the use, repair and depreciation of Edison-owned
tools carried in Edison tool stock located in Vernon.
(2)' An amount equal to the salaries and wages
paid to non-assigned Edison employees required for and working
temporarily on Vernon operations for normal and overtime hours
worked, to the extent attributable to Vernon operations, at
Edison's prevailing salary and wage rates, based on job classi-
fications and groupings in accordance with Edison's labor
contracts and Company poticies. Percentages in accordance with
Edison's standard accounting practice, shalt be ,added to such ~
salaries and wages to cover divisional overhead, tool expense,
transportation expense, and normal payroll burden charges for
paid absences and payroll taxes.
(3) So long as the services ~f the District
..5-
I Superin~enaent of Edison's Huntingt~n Park District are utilized
I
J
i
I
I
J
f
I
,
\<
'\0,
~
~
in connection with Vernon operations, an amount equal to 15% of
the salary paid to him for normal hours worked, holidays,
vacations, sick time and paid absences (not including overtime
hoors worked by such employee or any portion of such employee's
transportation or other expenses or allowances), such amount also
to include the additional charges provided for in Paragraph (1),
subparagraphs (a) and (b), of this Subsection A.
B.
Equipment~ Materials and SUP~lies.
(1) Issued from Edison Stores and Locations.
(a) In the case of new and used equipment,
,
materials and supplies issued for use in Vernon from Edison-
owned stores inventories located in Vernon, an amount equal to
Edison's then prevailing system average cost or charge for
such items.
(b) In the case of new equipment, materials
and supplies issued for use in Vernon from Edison locations
outside of Vernon, an amount equal to Edison's then prevai:J.ing
system average cost for such items, except that in the ca$e of
transform~rs and meters Edison's identified costs for such
items shall be used.
(c) In the case of used major materials or
(
equipment taken from Edison's locations outside of Vernon and
used in VernQn, an amount equal to the replacement cost thereo:t:
new less depreciation computed on the straight-Une method in ....
accordance with Edison's established depreciation rates,
(d) An amount computed by applying Edison's
prevailing system ~urden charge for Stores and Transportation
Expense to the CQsts specified in Subparagraphs (a), (b) and
(c) of this Paragraph (1). Such computed amount shall be in
lieu of any amount for the actual costs of the stores function
-6-
storekeeper salaries and wages and related costs which shall be
excluded from the accounting under Subsection A of this Section
Ill.
(2)
Direct Purchase.
.,
For equipment, material.
and supplies purchased by Edison specially for use in Vernon
(including Vernon-owned stores inventories), an amount equal to
Edison's actual net cOst for such items plus a purchasing
allowance of 1% thereof or $75.00 per invoice, whichever is the
sntaller, except that in the case of purchased items delivered
to Edison locations outside of Vernon there also shall be adde4
the burden charge for Stores and Transportat:f.on Expense speci.;,
fied in Paragraph (1), Subparagraph (d), of this Subsection B.
(3) Testing. An amount equal to Edison's direct
labor costs and related eXpenses for acceptancetUting, if any,
of transformers, meters and other major equipment.
----~------'---_._-
(4)
Removal from Service and Disposal.
Set:vice..
1
I
L1 . V. o.r. non a.nd placed in Edison-owned stores inventories shall be
credited to Vernon at Edison's prevailing salvage prices;
! provided, however, that transformers and meters removed from
able equipment, materials and supplies removed from service in
active service shall not be placed in Edison-owned stores
inventories but shall remain the property of Vernort. Equiplllellt,
m.;ite:da1 and supplies purchased for or recovered from Vet:non
OP~~l1t~~msand carried inl!:d'ison-o'wned stores inventories,
wh:f.chhavEl'been approved by 'Vet:non fOr dhposal, shalt be
..J>il~~clt() Vei'll.OI:la~Ed1:son'$ invel,ltory book value plus the
--. .',.-',- .,.... .;.......;,".-.....-.
ttl~a'r/il.gi'apli'(l), SUbpaliagraph (d), of ,this Subsection B.
'.blii'4enGl111~ge "for Stores ancl Transportation ExpeMe specifie:d
,
'th$
C. Automot:lveEgtl:l;Pment.
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. .
-,-~----~-'-----'-~'------_._---~-------~---'------'---'_'--------~-~------'-------'-~_.---=-----~-~----
(1) In th~ case of Edison-owned or leased aut~.
motive equipment regulat'ly and necessarily asSigned to Verrton
operations, an amount com.puted by multiplying E:dison' s preva:f.l..
ing sYli1tem hourly rate fot' such equipment by such equipment's
assigned hours plus overtime hours of use, if any.
(2) Xn the ease of employee-owned cars used irt
Vernon operations, the actual amount Edison reimburses
employees for such use.
D. Other Operatin~ Expenses. To the extent not
accounted for elsewhere irt this Section III, ~ amount~q~~~
~ E~~.?~'.~~, 8:~.~~~h~~E for the following items if expended
. \
with Vernon's approval on or in.corolection with Vernon
operations:
(1) Building rentals, repairs, services and
alterations.
(2) Utilities, excluding electric.
(3) Uniform rentals, repairs and replac~ment..
(4) Expenses and allowances of employees.
(5) Outside. contract services and supplies.
(6) Stationery and office supplies.
(7) Special services, incl,uding,but without
limitation, special engineering, right of
way, undergr-ound and shop and test work..
E. Sales' and Use Ts.xes. An amount equal to va11.clly
asseued State and Local sales and use taxes paid or required
tribe pa:l,dqYE:cltson in carrying out its duties and obligations
.9J.1~et-.. the Agreement.
. . F. Genet-at SUl?lilrvbiol1.and Administrative Services.
,',--., .:,',--',...,:;..,
~.~:9~~R~.ri$~11~~qison for the general supervis1.onand ac;lminis..
,:._.:..::-t;'-.~-'->;-;_>>.::"_:':.:::'-.,-:--:'::">~
't"t'ative'services to be. performed by it, including, withoti.t
'.;l~IIlf.t;~td.oll,qillil1.g and collection functions and genet-al
en&ineeting,. . QUptttv$U(jn andadminis tra don, an atnQUnt. equa.1 .eo
5% of the a.ggregate of the amounts payable each month toE:d;1son
pursuant to SubsecttonsA thrQugh E of this Section lIt; pro..
vided., however, that salvagectedits or credits resulting from
billings to third parties, Hany, offset against such amounts
shall be/added back before application of said percentage.
!
SECTION IV. J>eposit fot Edi$onStot'es lnventories.
A. During the term of the Agreement, Vernon shall
maintain on deposit with Edison an amount approximately equal
to Edison's investment in the stores inventories owned and
maintained by it from time to time in Vernon, its investment
therein to be determined as follows:
(1) By taking Edison's inventory book value of
materials and supplies on hand in Vernon as of June 30th a~d
December 31st of each year.
(2) By taking Edison's inventory book value of
eqU:lpment, testing equipment and office furniture and equ:l.pment
on hand in Vernon, lessacct'Ued depreciation thereon, as of J\1ne
30th andtlecember 31st of each year.
B. Vetnon's iriitial deposit of $175,000.00 made as of
Apr:U 3, 1962, receipt o.f wh:l.ch is acknowledged by Edison, shalt
be adjusted in accordance with an actual invento~y of the items
\
tefetred to in Subsection Aof thisSect:f.on IV taken as ofApdl
3, 1962; provided, however, that it:etlls designated by Vetnonfor
front stich inventory shall not be considered as part
stores inventories uriderthe Agreement for any
such in:fl::l.8.1 adjustment the amount of the
the nearest
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h::.....,..,...,--~~.~---.-~--~--~---".c;::-.~_..,.... _r----~-------~~------~~------_
">1"-~_~---:'~
multiple of $5,000.00) each si~ months commencing as Qf June 30,
1962.
D. Upon termination of the Agr~ement for any reason,
the amount which Vernon then has on deposit ~th Edison in
accordance with the foregoing provisions shatl forthwith be
refunded to Vernon by Edison.
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':., ,-.-J}. ,<
EXHIBIT "B"
Description of Leased Facilities
The facilities leased by Edison to Vernon pursuant
to paragraph 6 of the Operating Agreement are those certain
electric transmission, distribution and communication
facilities of Edison located in the City of Vernon descdbed
as follows:
1. The 66, OOO-vo1t transmission and conununi-
cation lines shown on maps numbered 1 through 19,
inclusive, attached to Resolution No. 2574 of the
City Council of the City of Vernon, including
poles, insulators, conductors, fixtut'esand other
appurtenant items comprising the complete tranS-
mission and communication lines shown on said maps.
2. The complete metering facilities used or
useful in measuring electric energy sold and
delivered to Bethlehem Steel Company.
3. The 66,OOO-vo1t customer substation
facilities serving Steel Casting Company, including
tran~formers, switches and other appurtenances and
the complete metering facilities used or useful in
lII.~asur1nge1ectric energy sold and delivered to .
..\:@~;qStee1 Casting Company.
~-----~~~~,~,,,,~~----_._-------~----~-,--,~---~~--------~
EXllUlT. "c"
, .,
Computation of ...
Resale~Ret~il Rate Level Di'fferent::f.al
SECTION I. Com~utation of J>:lffer entia 1.
The "resale-retail rate level differential," ref$t'l:'ed
to in paragraph 13, subparagraph (a) (2), of the OperatingAgre~~
ment, sh~ll be determined by d:f.viding the difference between the
total annual resale bill, computed in accordance w:f.th Sect:f.on It
of this Exh:l,b:f.t "C", and the t;otal annual reta:f.l bill, computed :f.n
accordance with Section HI of this Exhibit "e", by the amount: of
said total annual retail bill, with the rl;!suH expressed to the
nearest one-tenth of one per cent.
SECTIONll. Total Al1nl.l0l1.Resa.J.e nill.
The amount of the total annual resale bill shaH beb4s~d
on Edison's resale tar:l.ffscheduJ.ein effect at the time sl,l~h tQt:;a1
tesale bi.l! is being computed applied to the spec;::l.fications set
fohh below:
Kilowatts p/;!r mO'Qthly bill - 1.56,400 KW
K:f.lowatt hours per monthly b:l.11 - 70,850,000 KWHR
Delive:!;"y voltage
Avet'age pQwe:r:fact1)r
N~ber of monthly bi1l~
66 KV
96.0%
12
SECTIONII.l. Total Atl.oUdRet8:l.1 Bill.
The amount .o.fthe. to~a1 a.ooual
lowes tappU.cable tat;iff schedules in effee t at the time,
reta:f.l bill is being eomputedappUed to the Spe~t...
re1atedtypeSOf service set fotth on thefQl1C)~:l.tl$
~l-
2,000
3,600
GENERAL Sl!:RVlOE (DEMAND MEl'ER ... TH.REE PHASE)
. , .. H_ .-S1JQDtTLEA.,.l',DEMANDRA!]$ a)
Ki.lowatts fer Ki1Qwa,tt...Uout's Per
MonthltBi11 Monthly Bill
. . 20' 940
25 2,300
40 8,400
40 15,800
270
910
80
8,000
DeUve;ry
Voltage
. <yolts)
480
GENERAL SJJ:RVXOE (DEMAND MEl'ER.) .. -l.AR.GE
Kilowatts Kilowatt~
Per Hours Per
Monthly Monthly
Bill Bill
140 48,100
160 40,700
"
" 290 5,100
" 370 86,500
" 420 118,000
II 510 51,200
" 1,460 68~,OOO
II 2,720 1,252,000
II 7,070 3,943,000
2,400 970 373,000
" 1,080 257,Oao
3,310 2,055,000
..2,..
2,550
2,650
1,000
80
.. SMALL (PRl!:SJJ:N'l'
N\llllPer of ..
Mon.t:hl~ BUls
400'
760
2,110
830
620
(PRESENT SoaEDtTLEA-7)
Average
Power
Faetot
(Per Oen.J:)
lifu.lI1berof
Monthly
BUls
165
9,3
73 8
87 343
89 530
82 40
92 97
95 25
97 24
92 33
83 39
91 12
. ~.~i-,-./~""-~-----~~- .
GENERALSEIWlC~ (DEMI\NDMETER) ~ LA1tGE (PRESENT SCHEDULI.1;A..n (CQntld)
", .- , . . . ...... . - " . -, ., '." --.' ,- . -. '-.' .... 'j',..,-. "- '.
Kilowa ttll KHowatt- Average
Del:Lvery Per Hours Per Power Number of
Voltage Monthly Monthly Factor Mortthly
(Votts) Bill Bill (Per Cent> HUh
,
~,900* 1,230 .545,000 93 it
" 1,360 310,000 94 43
.. 2,750 270,000 90 26
.. 3,620 620,QOO 89 13
II 7,650 3,150,000 94 26
66,000 (52,600"F) 18,860,000 85 12
(41, 600~N)
* One transformation f~om 66 KV transmission
F ~ Off~peak demand
N ~ On-peak demand
DOMEST~c (SINGLE FAMILY) (PRESENTSCHEDULED~l)
Kilows tt~
Hours Pel;'
Monthly Ull
70
140
300
Number of
Monthly
Bills
100
620
100
STREET LIGHTING ~ UTILITY~QWNEDSYSTI!:M - FLAT RArE: ~
ALL ,NIGHT SERV1CE (PRESENrSCHEDl1LELS"'~)
Lumens Number of
Number of Per MonthlY
Lamps Lamp Bills
17 2,500 Inc;:. 12
9 4,000 Inc. 12
29 6,000 Inc. J,2
82 10.boo tnc. 12
20,OOOMv 12
~3~
"'""'1_."..-"-
---:-------_._----"~~---~---..:~'--,----------~~-------,.---------'------~"-------
STRE~TLIGHTlNG. CUSTOMER.OWNED SYSTEM ... FLAT MTe ..
ALL NIGHt SERVICE (PRESENT SCHEDULE LS;'2)
. - .',. , , ". '.- .. --'..-' --' "
Kilowatts of
Lamp Load Per
Monthly Bill
1.2
Number of
Monthly
Bills
36
GENERAL POWER (NO J)~ND METER) (PRESENT SCHEJ)UL~.P.l)
Horsepower Kilowatt... .
Per Hours Per Number of
Monthly Monthly Monthly
BUI Bill BUh
~
2 90 100
2 300 135
.2 ~OO 110
6 200 210
(6 1.000 40
6 1.300 15
14 300 875
14 2.200 160
14 5.500 15
25 600 285
25 4.400 40
25 6.500 15
GENERAL POWER (DEMANJ) ,METER) ~PRESENT SCHEDULE P..2)
Kilowatts K:I.lowatt.
Per Hours Per Number of
Monthly Monthly Monthly
Bill Bill Bills
~ ~
26 1,300 525
28 5.500 200
27 9.100 50
53 2,300 200
72 29.200 245
92 1.8,800 550
115 14,900 220
-4,.
i ~,
PUM~l~G POWER (ANNUAL BASlS)~PRESENr SCHEPULE PA-l)
Horsepower Kil owa t t~
Per Hours Per Number of
Monthly Monthly Monthly
BiU Bill Billa
~
150 16.000 24
185 84.000 84
580 122,000 48
.;.5~
EXHIBIT "0"
Statement of Agreed Procedures for
Computing Compensation to be Paid
by. Ed;l.son to Vernon If the Vernon
Diesel Generating Plant is Placed
on Stand"by or Operated QY Edison
1. The duration of a period of stand"by shall ~~tend
from the time Edison places the entire Vernon Diesel Generatin,
Plant or a specified number of units on stand~by, available far
quick start-up, until the stand-by requirement is terminat~d by
Edison.
2. If one or more Diesel engine units ar~ operated
for the benefit of Edison, then
(8) The net kwh generated by the operation
(Kwh generated minus the engine auxiliary kwh) to the
extent that they are delivered to Vernon load, shall,
for billing purposes only, be added to the monthly
energy charge as recorded on the Edison"Vernon billing
meters for the month in which such operations occurred
in accordance with paragraph 9 of the Agreement and
Section I, Subsectton A, of exhibit "A".
(b) If the auxiliary kwh consumed by the
operation eX:efi!eds the~enerated kwh, then the differ~
ence shall be subtracted from the Edison-Vernon
billing !Ileters1;:orb:tlJ.!ng purposes.
3. FOr b:tlling purpoBesthe maximum net capacity of
one Dies~l engine unit is deemed to be 4,000 kilowatts.
4. Whenever one or more Diesel engine units are plaQed
or operated for the benefit of Edison, Edison shall
Charge plus an Expense Charge as follows:
Capaclty..Charge .of$400 per engine
"1"
~enera~or per day or fraction thereof, bat nQt tQ
exceed 1$8,000.00 per engine generator in any
calendar month.
(ij) PLUS an Expense Charge of 1.15 ti~es the
entire fuel cost chargeable to the operation.
5 Holding one Qr more Diesel engine anits on stand-
by or operating same for the benefit of Edison will be cQnsidered
as a Non-Vernon Operation.
6. Test operations in connection with maintaining
the Diese~ u~its in first-class operating and physical condition
or operating' any of the Diesel engine anits at the request of
Vernon shall, not be considered as operations for the benefit of
Edison.
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