Resolution No. 4852
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RESOLUTION NO. 4852
A RESOLUTION. OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF A TRANSMISSION SERVICE AGREEMENT
FOR THE PALO VERDE .NUCLEAR GENERATION.STATION
PROJECT BETWEEN THE CITY OF VERNON AND THE
DEPARTMENT OF WATER AND POWER OF THE CITY OF
LOS ANGELES.
7 WHEREAS, the City of Vernon is a member of the Southern
8 California Public Power Authority (hereinafter referred to as
9 SCPPA); and
10 WHEREAS, SCPPA has executed an Assignment Agreement
11 with the Salt River Project Agricultural Improvement and Power
12 District (hereinafter SRP) on August 14, 1981; and
13 WrlEREAS, the City of Vernon has been allocated the
14 right.to participate in said Project to purchase approximately
15 4. 5% of SCPPA's interest or approximately 10.J33 mw; and
16 WHEREAS, the City of Vernon intends to approve
17 participation in said Project.
18 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
19 THE CITY OF VERNON AS FOLLOWS:
20 SECTION 1: The City Council of the City of Vernon
21 hereby approves the attached Palo Verde Nuclear Generation
22 Station Transmission Service Agreement by and between the
23 City of Vernon and. the Department of Water and Power of the
24 City of Los Angeles and hereby. authorizes the Mayor of the City
25 of Vernon to execute said Agreement on its behalf.
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SECTION 2: That the City Clerk is hereby authorized
27 to deliver said Transmission Service Agreement and a copy of
28 t.his Resolution for, and on behalf of, the City of Vernon to
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the Southern California. Public Power Authority.
SECTION 3: That the City Clerk of the City of Vernon
shall certify to the,pa.ssage of this Resolution and thereupon
and thereafter the same Shall be in full force and effect.
APPROVED AND ADOPTED this 3rd day of November, 1981.
LEONIS C.
ATTEST:
/
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
) SSe
COUNTY OF LOS ANGELES )
L
I, BRUCE V .MALKENHORST, Ci tyClerk .. of the . City. of
Verno.n, do hereby certify that the foregoing Resolutibn,being
Resolution No. 48~2 , was duly adopted by the City Council
of the City of Vernon, and WCiS approved by the Mayor of said
City at a. regular meeting of t.he City Council held on Tuesday,
November 3 , 1981.
(SEAL)
BRUCE V. ~mLKENHORST, City Clerk
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PALO VERDE NUCLEAR GENERATING STATION
TRANSMISSION SERVICE AGREEMENT
BETWEEN
CITY OF VERNON
AND
DEPARTMENT OF WATER AND POWER
OF THE CITY OF LOS ANGELES
[EXECUTION COpy]
[ SRP]
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TRANSMISSION SERVICE AGREEMENT
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energy purchased by the Purchaser under its Power
Sales Contract.
2.4. Los Angeles is willing to provide transmissio~ ser-
vice for capacity and energy during such time when
there is surplus capacity in Los Angeles' electri-
cal transmission facilities between the Project
I n t e r con n e c t. ion Point a n dt h e Points of
Interconnection. The availability of such trans-
mission service shall be determined at the discre-
tion of Los Angeles.
2.5. It is recognized that the Authority, on behalf of
the Parties, is now engaged in discussing princi-
ples for a direct-current transmission line between
the phoenix area and Mead Substation near Boulder
City, Nevada. This proposed facility is"not
required for transmission of the Authority's PVNGS
generation entitlement share and is subject to
studies of its environmental impact and economic
feaSibility. The transmission line would allow the
proposed participants to operate their electric
systems more efficiently and would allow the
Authority to transmit its PVNGS entitlement over
the new facility. It is in the interest of the
Authority, on behalf of the Parties, that such
facility be constructed and the Authority has
indicated that it is the Authority's present
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intention to use its best efforts to participate in
the proposed Mead-Phoenix transmission line, or
some equivalent al terna tive transmission facility.
2.6. It is likely the proposed direct-current transmis-
sion line could increase the transmissioncapabil....
ity from Arizona to the southern Californ~a area
and thereby provide to the Parties an opportunity
to benefit from alternate paths for transmission of
their capacity and energy. The Parties agree that
they will make a reasonable effort to participate
in future transmission facilities to provide addi-
tional transmission capacity from the PVNGS to the
Southern California area.
3. AGREEMENT: In consideration of the mutual covenants
herein, Los Angeles agrees with the Purchaser as follows:
4. DEFINITIONS: The following terms, whether in singular
or in the plural, when used herein and initially capitalized, shall
have the meanings specified:
4.1. Capacity: The capacity of the Purchaser under its
Power Sales Contract.
4.2. Designee: The Purchaser may designate the dis-
patcher of another entity, which has acquired an
entitlement to capacity and energy from the
Authority's ownership interest in PVNGS pursuant to
a power sales contract, as agent to perform its
scheduling under this Agreement.
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4.3. Dispatch~r: Anyone of the on-duty employees of a
Party who has responsibility for supervising the
overall operation of such Party's electric system.
4.4. Energy: The energy of the Purchaser under its
Power Sales Contract.
4.5. Point of Interconnection B: The point where Los
Angeles' McCullough-Eldorado line connects to the
500 kv bus at Eldorado Substation.
4.6. Point of InterconnectionC: The midpoint of the
Victorville-Lugo line where the Los Angeles and
Southern California Edison Company electrical sys-
tems interconnect.
4.7. Points of Interconnection: Point of
Interconnection B and Point of Interconnection C.
4.8. P<;>wer Sales Contract: The contract between the
Purchaser and the. Southern California Public Power
Authority whereunder the Purchaser has acquired an
entitlement to capacity and energy from the
Authority's ownership interest in PVNGS.
4.9. Pr<;>ject Interconnection Point: The Eldorado
Substation 500 kv bus where, pursuant to the
Transmission Agreement, Salt River Project is to
deliver a portion of the Authority's PVNGS entitle-
ment, the Navajo Switchyard 500 kv bus where,
pursuant to the Transmission Agreement, Salt River
Project is to deliver a portion of the Authority's
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PVNGS entitlement and the Mead Substation 230 kv
bus where, pursuant to the Transmission Agreement,
Salt River Project is to provide back-up de~ivery
of the Authority's PVNGS entitlement in the event
contemplated deliveries at the aforesaid points of
delivery are not made.
Salt River projegt: Salt River Project
Agricultural Improvement and Power District, an
agricultural improvement district organized and
existing under and by virtue of the laws of the
state of Arizona.
4.11. Transmission Agreement: The agreement between the
Authority and Salt River Project whereunder Salt
River Project has agreed to provide transmission
service for the Authority's PVNGS entitlement.
5. EFFECTIVE DATE AND TERM: This Agreement shall become
effective when executed and delivered by the Parties and shall remain
in effect between Los Angeles and the Purchaser until (i) the expira-
tion or termination of the Purchaser's Power Sales Contract or (ii)
such earlier date as is mutually agreed to by the Parties.
6. TRANSMISSION SERVICE:
4.10.
6.1. Los Angeles has determined that there is surplus
transmission capacity in its electrical transmis-
sion facilities between the Project Interconnection
Point and the Points of Interconnection and is
willing to provide 10.12 mw of transmission service
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between the Project Interconnection Point and Point
of Interconnection B or Point of Interconnection C
for Capacity and Energy in accordance with sched-
ules developed pursuant to Section 7, subject to
the provisions of Section 6.3 and Section 6.4. The
amount of transmission service herein may be
revised from time to time by the mutual written
agreement of the Authorized Representatives. Any
such revision shall be based on and shall not
exceed the amount of transmission service needed by
the Purchaser for the Capacity and Energy purchased
by the Purchaser under its Power Sales Contract.
6.2. The Purchaser shall, by written notice within one
year following the date of this Agreement, desig-
nate either Point of Interconnection B or Point of
Interconnection C as its transmission point for the
Purchaser's Capacity and Energy; and the Purchaser
may subsequently change such designation upon one
year's prior notice.
6.3. Prior to each anniversary of the date of this
Agreement, Los Angeles shall determine for the year
following the tenth year after such anniversary
whether the amount of transmission capacity, speci-
fied in Section 6.1, continues to be surplus to
the transmission capacity required to serve its
customers. In the event Los Angeles determines
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6.4.
6.5.
6.6.
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that such transmission capacity will not be
surplus, then Los Angeles shall provide written
notice at least tenth years in advance of th~ date
such transmission capacity will not be available.
From time to time and during any period of time
when there is a reduction in the system transfer
capability in megawatts in Los Angeles' transmis-
sion facilities between the Project Interconnection
Point and the Points of Interconnection hereunder,
then Los Angeles reserves the right to reduce the
transmission service available to the Purchaser in
such affected facilities. Any such reduction shall
be made on a pro-rata bas~s among the Parties.
The Purchaser shall be responsible for spinning
reserve requirements for its Energy transmitted
under this Agreement, and Los Angeles shall not be
required to maintain such spinning reserve.
As payment for the transmission service between the
Project Interconnection Point and the Points of
Interconnection, the Purchaser shall pay an amount
which is the product of its transmission capacity
hereunder and the rate for the Points of
Interconnection apPlicable to the Purchaser pursu-
ant to Section 6.1. The rate for transmission
service:
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6.6.1. Between the Project Interconnection
Point and Point of Interconnection B is
$0.2610 per kw.-month.
6.6.2. Between the Project Interconnection
Point and Point of Interconnection C is
$0.7258 per kw.-month.
The monthly charge shall be prorated for any month
the transmission capacity is unavailable for the
Purchaser's use for more than 24 hours.
6.7. Los Angeles reserves the right annually to review
the rates specified in Section 6.6. Any'change in
the rates shall be based on costs incurred by Los
Angeles associated with the transmission system and
associated with the total transmission operation
and maintenance expenses, excluding scheduling and
dispatching charges, and the administrative and
general expenses prorated for transmission costs as
reported in the Annual Power System Report of the
Department of Water and Power of The City of Los
Angeles to the Federal Energy Regulatory
Commission. Los Angeles shall give the Purchaser
written notice at least 120 days prior to the date
a new rate is to become effective. Such new rate
shall remain in effect until changed pursuant to
this Section 6.7.
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7. SCHEDULING OF CAPACITY AND ENERGY:
7.1. The hourly schedules of Capacity and Energy under
this Agreement shall not exceed the available
transmission capacity as determined in
Section 6.3. Energy associated with transmission
losses shall be returned by the Purchaser and shall
be scheduled to Los Angeles at mutually agreeable
times. The amount of such losses shall be deemed
to be one (l%) percent of the Energy transmitted
between the Project Interconnection Point and Point
of Interconnection B. The amount of such losses
shall be deemed to be three (3%) percent of the
Energy transmitted between the Project
Interconnection Point and Point of Interconnection
7.2.
7.3.
C.
Capacity and Energy shall be scheduled in accor-
dance with accepted scheduling practices. At least
one-half hour in advance of the hour during which
Capacity and Energy is to be scheduled, the
Purchaser's Dispatcher or its Designee shall advise
Los Angeles' Dispatcher of the proposed
arrangements.
Upon agreement by the Los Angeles Dispatcher to the
hourly schedules proposed in Section 7.2, and in
accordance with good utility practice, transmission
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service shall be provided for Capacity and Energy
in accordance with Section 6.
7.4. As payment for scheduling and dispatching services
provided hereunder, the Purchaser shall pay to Los
Angeles $1,030 per month regardless of whether or
not Energy is scheduled during that month.
7.5. Los Angeles reserves the right annually to review
and change the rate specified in Section 7.4. Any
change in the rate shall be based on Los Angeles'
scheduling and dispatching costs for providing the
amount of transmission service specified in
Section 6.1. Los Angeles shall give the Purchaser
written notice at least 120 days prior to the date
any new rate is to become effective. Such new rate
shall remain in effect until changed pursuant to
this Section 7.5.
8 . BILLING AND PAYMENT:
8.1. Los Angeles shall render, as soon as practicable, a
monthly itemized bill to the Purchaser for the
transmission service and for the scheduling and
dispatching services provided hereunder during the
preceding month. The Purchaser shall pay any bill-
ing within IS calendar days after receipt thereof.
8.2. Bills which are not paid in full within IS calendar
days aft.er receipt thereof shall thereafter bear
interest of one and one-half (1.5%) percent per
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mon th of the unpaid balance prorated by days until
payment is made.
9. LIABILITY: No Party, its directors, officers, commis-
sioners or employees shall be liable to any other Party for direct or
consequential loss or damage suffered to such other Party's electri-
cal system as a result of the first Party's performance or nonper-
formance, whether negligent or otherwise, under this Agreement. Each
Party shall release and hold harmless the other Party, its directors,
officers, commissioners and employees from any claim or liability for
damages to customers of the first Party as a result of such other
Party's performance or nonperformance, whether negligent or other- .
wise, under this Agreement.
10.
10.1.
10.2.
AUmORIZED REPRESElft'ATIVES:
As a means of establishing operating procedures and
of dealing in a prompt and orderly manner with var-
ious technical and operating problems which may
arise in connection with this Agreement, Los
Angeles and the Purchaser shall designate
"Authorized Representatives" to act on their behalf
with respect to those matters herein provided.
The functions and responsibilities of the
Authorized Representatives shall be to establish
operating procedures and standard practices, con-
sistent with the provisions herein, for the
guidance of operating employees of Los Angeles and
the Purchaser as to matters which affect operations
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of Los Angeles and the Purchaser pursuant to this
Agreement.
10.3. Except as specifically provided herein, the
Authorized Representatives shall have no authority
to modify any of the provisions of this Agreement.
11. JOINT PLANNING: The Parties agree to engage in joint
planning and study projects with respect to transmission facilities.
The Parties further agree that they will make reasonable efforts to
evaluate and construct transmission facilities to be jointly owned
among themselves, the Authority and other entities to increase the
transmission capacity of the interconnected systems between Arizona, .
Nevada and the Southern California area.
12.
12.1.
NOTICES:
Any written notice given or made in connection
herewith shall be deemed properly served, given or
made if delivered in person or sent by registered
or certified mail, postage prepaid, to the persons
specified below:
12.1.1. Department of Water and Power
of The City of Los Angeles
c/o Chief Electrical Engineer
and Assistant Manager
P.O Box III
Los Angeles, California 90051
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12.1.2. City of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
Attention: Director of
Light and Power
12.2. The Purchaser may, by notice to Los Angeles, and
Los Angeles may, by notice to the Purchaser, change
the designation or address of the person so speci-
fied as the one to receive notices pursuant to this
Agreement.
13. COORTERP~ EXECUTION: This Agreement may be exe-
cuted in counterparts and by the Parties on separate counterparts,
each of which, when so executed and delivered, shall be. an original,
but all such counterparts shall together constitute but one and the
same instr ument. Fully executed sets of counterparts shall be deliv-
ered to and retained by each Party.
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IN WITNESS WHEREOF, the Parties have caused this Agreement
to be executed as of the date first set forth above.
DEPARTMENT OF WATER AND POWER
OF THE CITY OF LOS ANGELES
by
BOARD OF WATER AND POWER
COMMISSIONERS OF THE CITY OF
LOS ANGELES
By
and
Secretary
CITY OF VERNON
By
Title
Attest:
Title
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