Resolution No. 4854
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RESOLUTION NO. 4854
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF A LETTER
AGREEMENT WITH SOUTHERN CALIFORNIA EDISON
COMPANY PROVIDING FOR THE NEGOTIATION OF AN
INTEGRATED OPERATIONS AGREEMENT FOR INTEGRATION
OF VERNON'S PROPOSED PALO VERDE ENTITLEMENT
AND CERTAIN OTHER RESOURCES
7 WHEREAS, the City Council of the City of Vernon is
8 considering participating in the Palo Verde Nuclear Generation
9 Station Project (hereinafter npalo VerdeU) as a member of the
10 Southern California Public Power Authority (hereinafter "SCPPA");
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12 WHEREAS, Vernon purchas8s energy and capacity from
13 Southern California Edison Company (hereinafter "Edison")
14 pursuant to a full-requirements tariff schedule filed with the
15 Federal Energy Regulatory Commission (hereinafter "FERC"); and
16 ~ffiEREAS, FERC has approved for other resale cities an
17 Intergated Operations Agreement (hereinafter "lOA") which
18 provides for the integration of non-Edison resources to the
19 combined Edison resale cities' system; and
20 WHEREAS, Edison has requested that the City of Vernon
21 execute an lOA identical to Anaheim's IOA in order to integrate
22 the City's proposed entitlement in Palo Verde; and
23 WHEREAS, the City Council of the City of Vernon is
24 unwilling at this time to commit its future actions to the
25 restrictions contained in the IOA and has attempted to
26 negotiate a different integration formula with Edison since
27 April of 1981; and
28 WHEREAS, Edison has refused to modify the Anaheim lOA
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and refuses to include the modifications suggested by the City
of Vernon; and
WHEREAS, Edison has indictated that it is willing to
negotiate an IOA limited in its application to the integration
of Vernon's proposed entitlement in Palo Verde, replacement
capacity, if necessary, associated with Vernon's Palo Verde
entitlement and any non-firm energy acquired by Vernon from
third parties and delivered to Vernon's system to serve its load;
and
WHEREAS, it is the opinion of the City's consultants
and the City Attorney that Edison will not agree to any further
modifications without resort to legal actions before FERC or,
a court of competent jurisdiction; and
WHEREAS, the economic studies which have been prepared
in consideration of the City's participation in the Palo Verde
Project have considered the detrimental impact of the Anaheim
lOA on said Project; and
WHEREAS, Edison's willingness to negotiate an IOA
limited in its application to the Palo Verde Project restricts
the lOA's detrimental affects to Palo Verde which have been
considered in the economic studies prepared by the City's
consultants; and
WHEREAS, Edison has agreed to execute a letter
agreement providing that they will participate in negotiations
in good faith to negotiate an lOA limited in its application
to the City's participation in Palo Verde; and
WHEREAS, the City Attorney recommends that the City of
Vernon execute said letter agreement agreeing to negotiate in
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good faith with Edison an lOA limited in its application to
the integration of the City's participation ~n Palo Verde.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF VERNON AS FOLLOWS:
SECTION 1: That the City Council of the City of Vernon
hereby finds and determines that the recitals contained herein-
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above are true and correct.
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SECTION 2: That the City Council of the City of Vernon
does hereby approve the letter agreement with Edison for the
negotiation of an lOA for integration of Vernon's proposed
Palo Verde entitlement and certain other resources, a copy of
which is attached hereto as Exhibit "A" and incorporated herein
as though fully set forth at length.
SECTION 3: That the City Council of the City of Vernon
hereby authorizes the Mayor and the City Clerk of the City of
Vernon to execute said letter agreement for, and on behalf of,
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the City of Vernon.
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SECTION 4: That the City Clerk is hereby authorized
to deliver said letter agreement and a copy of this Resolution
for, and on behalf of, the City of Vernon to Southern California
Edison Company.
SECTION 5: That the City Clerk of the City of Vernon
shall certify to the passage 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.
ATTEST:
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~~LKENHORST, City Clerk
BRUCE V.
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
55.
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 4854 , was duly adopted by the City Council
of the City of Vernon, and was approved by the Mayor of said
City at a regular meeting of the City Council held on Tuesday,
November 3
, 19' 81
BRUCE V. ~~LKENHORST,
(SEAL)
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