Resolution No. 4871
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RESOLUTION NO. 4871
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF AN AGREEMENT FOR INTEGRATION AND INTERRUPTIBLE
TRANSMISSION OF NONFIRM ENERGY PURCHASED PURSUANT
TO AN ENERGY AGREEMENT BY VERNON FROM NEVADA
POWER COMPANY BETWEEN SOUTHERN CALIFORNIA EDISON
COMPANY AND THE CI~Y OF VERNON
7 WHEREAS, the City of Vernon has entered into an
8 agreement with the Nevada Power Company for the purchase of
9 nonfirm energy on December 15, 1981; and
10 WHEREAS, Southern California Edison Company has agreed
11 to provide interruptible transmission of nonfirm energy purchased
12 pursuant to said agreement with the Nevada Power Company; and
13 WHEREAS, purchases of energy from suppliers other than
14 Southern California Edison Company must be integrated with
15 Southern California Edison Company's system in accordance with
16 the tariff regulations approved by the Federal Energy Regulatory
17 Commission which are in effect; and
18 WHEREAS, Southern California Edison Company and the
19 City of Vernon have agreed to terms and conditions of
20 integrating nonfirm energy purchases from Nevada Power Company
21 which are contained in the copy of the Agreement which is
22 attached hereto and made a part hereof as Exhibit "A".
23 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
24 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the City of Vernon
26 does hereby approve the Agreement for Integration and
27 Interruptible Transmission of Nonfirm Energy Purchased, Pursuant
28 to an Energy Agreement, by Vernon from Nevada Power Company
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1 Between Southern California Edison Company and Th~ City of
2 Vernon, a copy of which is attached hereto as Exhibit "A".
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SECTION 2: That the Mayor is hereby authorized to
4 execute said Agreement for and on behalf of the City of Vernon.
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SECTION 3: That the City Clerk of the City of Vernon
6 shall certify to the passage of this Resolution and thereupon
7 and thereafter the same shall be in full force and effect.
8 APPROVED AND ADOPTED this 5th day of January, 1982.
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15 BRUCE V. MALKENHORST, City Clerk
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\ EONIS C. MALB , G, Mayo
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ATTEST:
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1 STATE OF CALIFORNIA
2 COUNTY OF LOS ANGELES
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 4871
,was duly adopted by the City Council
7 of the City of Vernon, and was approved by the Mayor of said
8 City at a regular meeting of the City Council held on Tuesday,
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January 5
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, 1982.
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BRUCE V. ~1ALKENHORSTf C1ty Clerk
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AGREEMENT FOR INTEGRATION AND INTERRUPTIBLE
TRANSMISSION OF NONFIRM ENERGY PURCHASED,
PURSUANT TO AN ENERGY AGREEMENT,
BY VERNON FROM NEVADA POWER COMPANY
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
THE CITY OF VERNON
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Section
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AGREEMENT FOR INTEGRATION AND INTERRUPTIBLE
TRANSMISSION OF NONFIRM ENERGY PURCHASED,
PURSUANT TO AN ENERGY AGREEMENT,
BY VERNON FROM NEVADA POWER COMPANY
TABLE OF CONTENTS
Parties
Recitals
Agreement
Term
Definitions
Integration of and Scheduling
Nonfirm Energy
Transmission Service
Transmission Losses
Charges
Billing and Payment
Release
Liability
Regulatory Authority
No Dedication of Facilities
No Third Party Rights
Governing Law
Notices
Uncontrollable Forces
Signature Clause
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AGREEMENT FOR INTEGRATION AND INTERRUPTIBLE
TRANSMISSION OF NON-FIRM ENERGY PURCHASED,
PURSUANT TO AN ENERGY AGREEMENT,
BY VERNON FROM NEVADA POWER COMPANY
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1. PARTIES: The Parties to this Agreement are: The City of
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Vernon ("Vernon"), a municipal corporation of the State of
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California, and the Southern California Edison Company
("Edison"}, a California corporation.
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2. RECITALS: This Agreement is made with reference to the
following facts, among others:
2.1 The Parties are currently in the process of
negotiating a definitive integrated operations agreement, but
will not complete such negotiations, execute and make
effective such agreement prior to the time Vernon will require
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integration of and transmission service for Non-Firm Energy
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which it proposes to purchase from Nevada.
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2.2 Vernon now desires to purchase Non-Firm Energy from
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Nevada on a when, as, and if available basis, for operational
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integration into the Edison system, and has entered into the
Interconnection Agreement between Nevada Power Company and the
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City of Vernon, which, among other things, provides for the
interchange of emergency energy and economy energy between
Vernon and Nevada. A copy of which is attached hereto as
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Exhibit A.
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2.3 Vernon desires to obtain from Edison, and Edison is
willing to provide to Vernon, interruptible transmission
service for such Non-Firm Energy over Edison's electrical
transmission facilities between the Point of Attachment and
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the Point of Delivery.
2.4 Nevada has a capacity entitlement in certain
transmission facilities connected to the Point of Attachment.
Nevada has notified the Parties in writing that Nevada will
deliver such Non-Firm Energy over such capacity entitlements
to the Point of Attachment.
3. AGREEMENT: In consideration of the mutual covenants
contained herein, the Parties agree as follows:
4. TERM: This Agreement shall become effective when
executed by the Parties and accepted for filing by the Federal
Energy Regulatory Commission (FERC); provided, however, if
upon such filing FERC enters into a hearing to determine
whether this Agreement is just and reasonable, it shall not
become effective until the date when an order no longer
subject to judicial review has been issued by FERC determining
this Agreement to be just and reasonable without changes or
new conditions unacceptable to either Party. This Agreement
shall continue in force and effect until t~rminated by either
Party by giving thirty (30) days' advance written notice of
such termination to the other Party.
5. DEFINITIONS: The following terms, when used herein with
initial capitalization, whether in the singular or the plural,
shall have the meaning specified:
5.1 Agreement: This Agreement.
5.2 Edison: Southern California Edison Company.
5.3 Energy Agreement: Interconnection Agreement between
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Nevada Power Company and the City of Vernon, California, dated
2 December 15, 1981, under which Vernon shall purchase Non-Firm
3 Energy from Nevada, a copy of which is attached hereto and
4 made a part hereof.
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5.4 Nevada: Nevada Power Company.
5.5 Non-Firm Energy: Energy purchased by Vernon from
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7 Nevada pursuant to Service Schedule A (Emergency Assistance)
8 and Service Schedule B (Economy Energy Interchange) of the
9 Energy Agreement.
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5.6 Party: Vernon or Edison.
5.7 Point of Attachment: The 500 kV bus at Eldorado
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12 Substation where Nevada is deemed to deliver Non-Firm Energy
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5.8 Point of Delivery: The point where the electrical
conductors of Edison connect with the 66 kV facilities of
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Vernon and where the delivery of Non-Firm Energy takes place
between Edison and Vernon.
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5.9 Point of Interconnection: The 230 kV bus at Mead
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Substation where the electrical systems of Edison and Nevada
are electrically interconnected and where the scheduling of
Non-Firm Energy between Edison and Nevada is deemed to take
place.
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INTEGRATION OF AND SCHEDULING NON-FIRM ENERGY:
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6.1 Edison agrees to integrate operationally Non-Firm
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Energy with Edison's own resources so long as conditions on
Edison's system permit.
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6.2 Because it is not practically, technically or
functionally feasible for Vernon to schedule and dispatch such
Non-Firm Energy as a part of the Edison control area pursuant
to this Agreement, Edison, acting as City agent, shall provide
scheduling and dispatching services for such Non-Firm Energy.
6.3 Vernon shall make such Non-Firm Energy available to
Edison for scheduling and dispatching as necessary for
efficient integrated operations. Except as otherwise provided
in Sections 7.2 and 7.3, Edison shall provide in the same
manner such services to Vernon as if Edison had purchased such
Non-Firm Energy.
6.4 The following procedures shall be used for
scheduling such Non-Firm Energy.
6.4.1 Vernon and Nevada shall arrange for mutually
agreeable quantities of Non-Firm Energy and times when such
Non-Firm Energy is to be available to be delivered. Schedules
of Non-Firm Energy at the Point of Interconnection shall not
in any hour exceed a rate of delivery in excess of Vernon's
load (as estimated by Vernon for that hour and rounded to the
nearest lower megawatt) plus losses to the Point of Delivery.
6.4.2 Vernon shall arrange for Nevada's load
dispatcher to advise Edison's load dispatcher, at least one-
half hour in advance of the hour during which Non-Firm Energy
is to be scheduled, of the arrangements proposed by Nevada and
Vernon. Edison shall determine the amount of transmission
capability, if any, which is available between the Point of
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Attachment and the Point of Delivery.
6.4.3 Upon agreement of the load dispatchers of
Edison and Nevada, hourly schedules for the delivery of
Non-Firm Energy shall be made in accordance with procedures
agreed upon in advance by the Edison and Nevada load
dispatchers. Such procedures shall conform to good electric
utility practice.
6.5 Amounts of Non-Firm Energy shall be scheduled by
Edison from Nevada at the Point of Interconnection and such
amounts shall be deemed to be delivered by Nevada to Edison at
the Point of Attachment.
6.6 Non-Firm Energy, less transmission losses, delivered
by Edison to Vernon at the Point of Delivery in any hour shall
be used to offset energy which otherwise would have been
purchased by Vernon under Edison's partial requirements rate
during that hour. Vernon shall be credited on its monthly
bill for such Non-Firm Energy less transmission losses so
delivered by Edison.
6.7 If Vernon's recorded load in any hour is less than
that load estimated by Vernon for that hour, and if the
scheduled energy from Nevada during that hour less
transmission losses is at a rate equal to the estimated load,
Vernon shall receive credit for only that energy required to
meet its actual load for such hour. Edison may at its sole
discretion, purchase all or part of the energy which is in
excess of Vernon's recorded load. If Edison chooses to
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purchase such excess energy, Edison shall pay for such excess
energy at a rate per kilowatthour not to exceed the lesser of
(i) the rate paid by Vernon to Nevada during that hour for
energy purchased under the Energy Agreement as such rate is
determined pursuant to Section 5 of said Energy Agreement,
(ii) Edison's decremental energy value for that hour as
established by Edison's dispatcher, or (iii) the average price
per kilowatthour paid by Edison for economy energy purchased
from Arizona Public Service Company, Tucson Electric Company,
Nevada Power Company and Salt River Project Agricultural
Improvement and Power District during the preceding month.
Such energy shall be deemed to be delivered by Nevada to
Edison at the Point of Attachment.
6.8 Spinning Reserves: Edison shall provide spinning
reserves to Vernon to back-up Vernon's purchases of Non-Firm
Energy, if any. Edison may charge Vernon for the amount of
spinning reserves, as measured in megawatts, that Edison
provides to Vernon during the monthly billing period at the
average hourly incremental cost incurred by Edison in
providing such spinning reserves. The amount of spinning
reserves for which Edison shall so charge during a monthly
billing period shall be the sum of the spinning reserves
provided each hour by Edison during the monthly billing
periOd, in accordance with the following formula:
SRA = RD - (MD-CC)
Where: CC ~ MD and SRA ~O and
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SRA = Amount of Spinning Reserves provided by Edison,
expressed in megawatts, as determined each hour
during the monthly billing period.
RD = Rate of Delivery, expressed in megawatts, of
Non-Firm Energy purchased by Vernon, as
measured each hour during the monthly billing
period.
MD = City's maximum demand, expressed in megawatts,
as recorded during the monthly billing period.
CC = Capacity Credit, expressed in megawatts, to
which City may be entitled during the monthly
billing period, pursuant to an Integrated
Operations Agreement.
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14 7. TRANSMISSION SERVICE:
15 7.1 Subject to Sections 7.2 and 7.3, Edison shall
16 provide interruptible transmission service to Vernon in
17 accordance with schedules developed pursuant to Section 6.4.3
18 over Edison's electrical transmission facilities between
19 the Point of Attachment and the Point of Delivery.
20 7.2 The availability of such transmission service shall
21 be determined at the sole discretion of Edison, and Edison
22 reserves the right to interrupt or curtail such service
23 hereunder at any time and for any reason upon oral notice
24 given by Edison's load dispatcher to either Vernon's or
25 Nevada's load dispatcher.
26 7.3 Interruptible transmission services provided by
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Edison hereunder to Vernon shall not exceed in any hour
Vernon's load plus transmission losses from the Point of
Attachment to the Point of Delivery.
7.4 Subject to the provisions of Section 7.2, Edison
shall, during the periods that Edison has agreed to provide
such interruptible transmission service and within the maximum
rate of delivery accept delivery of energy scheduled by Nevada
and shall concurrently deliver an equivalent amount of energy,
less transmission losses, to the specified Point of Delivery.
7.5 If sufficient transmission capacity over and above
Edison's own requirements to transmit firm and interruptible
energy for sale to its customers, its requirements to make
available firm transmission service to Third Parties, and for
providing system reliability is not available to accommodate
all requests made to Edison for interruptible transmission
service, all those making such requests shall attempt to agree
upon a reasonable and practical method for allocating the
service available among themselves. If agreement cannot be
reached, Edison, at its sole discretion, shall make such
allocation.
7.6 Hourly schedules of energy deliveries hereunder and
methods for implementing curtailments pursuant to Section 7.2
shall be in accordance with practices and procedures agreed
upon by Vernon and Edison load dispatchers.
7.7 Vernon may make arrangements with Nevada to use
Nevada's share of transmission capacity entitlement to such
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transmission facilities to schedule and deliver energy to
Edison at the Point of Attachment, provided, that in such
event, Edison shall not accept delivery of such energy at such
Point of Attachment until Vernon has caused Nevada to notify
Edison, in writing, of the amounts of transmission service
that Nevada will make available to Vernon to such Point of
Attachment using Nevada's transmission capacity entitlement in
such transmission facilities.
8. TRANSMISSION LOSSES:
8.1 Prior to determining Vernon's energy credit for the
Non-Firm energy delivered to Vernon by Edison hereunder, the
amount of such Non-Firm energy scheduled to Edison by Nevada
at the Point of Attachment shall be reduced by 3.95 percent to
reflect transmission losses from the Point of Attachment to
the Point of Delivery.
9. CHARGES:
9.1 For interruptible transmission service made
available by Edison to Vernon under this Agreement, Vernon
shall pay Edison for each kilowatthour scheduled for Vernon's
account at the initial rate of 1.70 mills per kilowatthour.
These rates are subject to change pursuant to Section 13.1.
9.2 For scheduling and dispatching services provided in
any month by Edison pursuant to this Agreement, Vernon shall
pay to Edison the sum of $570 per month, regardless of whether
Non-Firm Energy is scheduled during that month or not;
provided, that such monthly charge shall be waived in the case
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of a month during which no communication pertaining to
schedules under this Agreement is made between Vernon or
Nevada and Edison dispatchers. Such sum shall be redetermined
by Edison prior to January 1 of each year based on Edison's
budgeted amounts of money for load dispatching and production
section function expenses for that year. Any change in such
sum, if required by FERC to be filed as a rate change with
FERC, shall be made 60 days in advance of January 1, and
Vernon agrees that such change may become effective without
hearing. Such redetermined sum shall become effective on
January 1 of that year and shall remain in effect until
changed pursuant to the foregoing or changed pursuant to
Section 13.2.
9.3 Except as within the context of a major rate
increase proceeding, Vernon shall not oppose nor request a
hearing with FERC concerning charges for scheduling and
dispatching services as redetermined by Edison and such
redetermined charges shall remain in effect until changed
pursuant to the foregoing or changed pursuant to Section
13.2. However, Vernon shall have the right to review the
exhibits, as filed with FERC, for such redetermined charges.
10. BILLING AND PAYMENT:
10.1 Edison shall render bills to Vernon by the 10th day
of the fOllowing month for services provided hereunder during
the preceding month. Vernon shall pay such bills within
twenty (20) calendar days after receipt thereof.
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10.2 Bills which are not paid in full by Vernon by said
due date shall thereafter bear interest at the rate of one and
one-half percent (1 1/2%) per month, or the maximum legal
rate, whichever is less, of the unpaid balance prorated by
days until payment is received by Edison.
10.3 In the event any portion of any bill is disputed,
Vernon shall pay the bill including the disputed amount to
Edison under protest when due. If the protested portion of
the payment is found to be incorrect, Edison shall refund to
Vernon any amount due inclUding interest at the rate. of one
and one-half percent (1 1/2%) per month, or the maximum legal
rate, whichever is less, prorated by days from the date of
payment by Vernon to the date the refund check is mailed by
Edison.
11. RELEASE:
11.1 Notwithstanding the provisions of Section 12, the
Parties recognize that the transmission service provided by
Edison under this Agreement may be interrupted or curtailed by
Edison, at any time and for any reason, at Edison's sole
discretion.
11.2 Notwithstanding the provision of Section 12, Edison
shall not be liable to Vernon, and Vernon hereby releases
Edison from and indemnifies Edison against any claim, demand,
liability, loss or damage, whether direct, indirect or
consequential incurred by Vernon, Nevada or others which
results from such interruption or curtailment of transmission
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service under this Agreement.
12. LIABILITY:
12.1 Except for any loss, damage, claim, cost, charge or
expense resulting from Willful Action, neither Party, its
directors, governing bodies, officers nor employees shall be
liable to the other Party for any loss, damage, claim, cost,
charge, or expense of any kind or nature incurred by the other
Party (including direct, indirect or consequential loss,
damage, claim, cost, charge or expense; and whether or not
resulting from the negligence of a Party, its directors,
governing bodies, officers, employees or any person or entity
whose negligence would be imputed to such Party) from (i)
engineering, repair, supervision, inspection, testing,
protection, operation, maintenance, replacement,
reconstruction, use, or ownership of such Party's electric
system, or (ii) the performance or nonperformance of the
obligations of a Party under this Agreement. Except for any
loss, damage, claim, cost, charge, or expense resulting from
Willful Action, each Party releases the other Party, its
directors, governing bodies, officers, and employees from any
such liability.
12.2 Except for liability resulting from Willful Action,
a Party whose electric customer shall make a claim or bring an
action for any death, injury, loss or damage arising out of
delivery of, interruptions to, or curtailment of electric
service to such customer shall indemnify and hold harmless the
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other Party, its directors, governing bodies, officers and
employees from and against any liability for such death,
injury, loss or damage. The term "electric customer" shall
mean an electric consumer, except an electric utility system
to whom power is delivered for resale.
12.3 For the purpose of this Section 12, Willful Action
shall be defined as action taken or not taken by a Party at
the direction of its directors, governing bodies, officers, or
employees having management or administrative responsibility
affecting its performance under this Agreement, which action:
12.3.1 Is knowingly or intentionally taken or not
taken with conscious indifference to the consequences thereof
or with intent that injury or damage would result or would
probably result therefrom.
12.3.2 Has been determined by final arbitration
award or final judgment or judicial decree to be a material
default under this Agreement and which occurs or continues
beyond the time specified in such arbitration award or
judgment or judicial decree for curing such default or, if no
time to cure is specified therein, occurs or continues
thereafter beyond a reasonable time to cure such default.
12.3.3 Is knowingly or intentionally taken or not
taken with the knowledge that such action taken or not taken
is a material default under this Agreement.
12.4 Willful Action does not include any act or failure
to act which is merely involuntary, accidental, or negligent.
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12.5 The phrase "employees having management or
administrative responsibility," as used in Section 12.3, means
the employees of a Party who are responsible for one or more
of the executive functions of planning, organizing,
coordinating, directing, controlling, and supervising such
Party's performance under this Agreement with responsibility
for results.
13. REGULATORY AUTHORITY:
13.1 It is understood that the initial rates for service
hereunder are based on a rate of return of 11.2 percent. At
such time as the CPUC finds a new overall rate of return on
retail operations to be reasonable for Edison and authorizes
rates based on such new rate of return to become effective,
the rates for service hereunder shall be redetermined based on
said new rate of return. Such redetermined rates for
interruptible transmission service shall be applied to service
rendered hereunder on and after the day when the CPUC has
authorized retail rates based on such new rate of return to
become effective. In addition, if either Party believes that,
for reasons other than a change in rate of return there has
been a significant change in Edison's annual revenue
requirements for the facilities upon which rates for service
hereunder are based, such Party may request that the rates be
redetermined. Following such request, Edison shall
redetermine such rates which shall be effective as of the
first day of the month following the date of such
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redetermination; provided, that such a redetermination may be
made no sooner than twelve months after the most recent
redetermination of rates for service for reasons other than a
change in rate of return. Any redetermination of rates for
service pursuant to this Section 13.1 shall be determined in a
manner consistent with the method by which the initial rates
for service hereunder were determined and shall be based on
conditions in existence at the time of such redetermination.
Vernon shall have the right to review the exhibits, as filed
with FERC, for such redetermined charges.
13.2 Nothing contained herein shall be construed as
affecting in any way the right of Edison, in furnishing
service under this rate schedule, to unilaterally make
application to the FERC for a change in rates, charges,
classification, or service, or any rule, regulation, or
contract relating thereto, under Section 205(d) of the Federal
Power Act and pursuant to the Rules and Regulations
promulgated by FERC thereunder, and have such change become
effective pursuant to Section 205(e) of the Federal Power
Act.
13.3 Vernon shall reimburse Edison for all filing fees
incurred by Edison for this Agreement.
14. NO DEDICATION OF FACILITIES: Any undertaking by one
Party to the other under any provision of this Agreement shall
not constitute the dedication of the system or any portion
thereof of either Party to the public or to the other Party,
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and it is understood and agreed that any such undertaking by
2 either Party shall cease upon the termination of this
3 Agreement.
4 15. NO THIRD PARTY RIGHTS: Except as otherwise specifically
5 provided in this Agreement, the Parties do not intend to
6 create rights in, or to grant remedies to, any third party as
7 a beneficiary of this Agreement or of any duty, covenant,
8 obligation or undertaking established herein.
9 16. GOVERNING LAW: This Agreement shall be interpreted,
10 governed by, and construed under the laws of the State of
11 California or the laws of the United States, as applicable, as
12 if executed and to be performed wholly within the State of
13 California.
14 17. NOTICES: Any notice, unless otherwise provided in this
15 Agreement, given or made in connection with this Agreement,
16 shall be in writing and shall be deemed properly served, given
17 or made if delivered in person or sent by United States mail,
18 postage prepaid, to the persons specified below~
19 Southern California Edison Company
c/o Secretary
20 P. O. Box 800
Rosemead, California 91770
21
22
City of Vernon
Vernon City Hall
4305 Santa Fe Avenue
Vernon, California 90058
By notice sent to the other Party, either Party may designate
different persons or different addresses for the giving of
23
24
25
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notices hereunder.
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18. UNCONTROLLABLE FORCES:
2 18.1 Neither Party shall be considered to be in default
3 in the performance of any of its obligations under this
4 Agreement (other than obligations of said Party to make
5 payments hereunder) when a failure of performance 'shall be due
6 to uncontrollable forces. A Party rendered unable to fulfill
7 any of its obligations under this Agreement by reason of
8 uncontrollable force shall exercise due diligence to remove
9 such inability with all reasonable dispatch. Nothing
10 contained herein shall be construed so as to require" a Party
11 to settle any strike or labor dispute in which it may be
12 involved.
13 18.2 Edison reserves the right to temporarily interrupt
14 and curtail service under this Agreement without notice to
15 Vernon or Nevada if such interruption or curtailment is
16 caused by an uncontrollable force. Such curtailment may be
17 related to implementation of mutual load-shedding arrangements
18 agreed upon by the Parties.
19 18.3 For the purposes of this Agreement, an
20 uncontrollable force shall be any cause beyond the control of
21 the Party affected, including but not limited to, failure of
22 or threat of failure of facilities, flood, earthquake, storm,
23 fire, lightning, epidemic, famine, war, riot, civil
24 disturbance or disobedience, labor dispute, labor or material
25 shortage, sabotage, restraint by court order or public
26 authority, and action or nonaction by, or inability to obtain
-17-
sCE 27-199/81
2
satisfactory authorizations or approvals from any governmental
agency or authority which, by exercise of due diligence and
3
foresight, such Party could not reasonably have been expected
4
to avoid and which, by exercise of due diligence, it has been
5
unable to overcome.
6 19. SIGNATURE CLAUSE: The signatories hereto represent that
7 they have been appropriately authorized to enter into this
8 Agreement on behalf of the Party for whom they sign.
9
Executed as of
, 198 _'
SOUTHERN CALIFORNIA EDISON COMPANY
10
ATTEST:
11
12
By
Assistant Secretary
13
ATTEST:
CITY OF VERNON
14
15
16
By
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By
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c:.cE "7.100/",
CMG:klm
1CMG052.C
2 12/15/81
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,...("l: ._ ,_ _ '..
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Exhibit A
IN1'E&CCIOQCTICM .t.GU!'.IIaT
htveen
5!VAnl PCJlEl OCICPAft
'IID4
eln or VDlfCB
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t1US AGREEMENT auteredtDto .. of t:Ile 15th day of
December
. .1981,
hereinafter referred to .. "Interconnection Agreement". between CITY or VEINON.
hereinafter referred to a8 '~eruon". aDd DVADA PCliEI CXt!PANY. hereinaftet' referred
to as t'Nevada". each being a party bereto and said entities being 801Det:l1leS
referred to &s "the Parties";
~
WI'DiESSEm :
.'
~, Nevada is engaged in the generation, distribution and sale of
electric power and energy in the State of Revada. 'and is interconnected with
Southern California Edison Company (Edison) in southern Nevada; and
WHEREAS, Vernon is or is about to be engaged in the generation, transmission
and sale of electric power and energy in the State of California and has contracted
for transmission service with Edison; and
WHEREAS, the Parties will each ~ntain generating capacity for use in
their .ystem and believe that exchanges of power and energy between their
respective .ystems viII provide substantial benefits to tbe regions and customers
served by each Party, including DOre efficient use of generating capacities,
more efficient scheduling of new facilities, and general economics gained
through interchange of energy;
JI~, mEREFORE, it is hereby agreed .s follows:
4.-
! .t1
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ARTICLE I
J'URPOSE
1.1 1\te primary purpose of the Parties .1n enterlna 'Illto tills
- ,
,'--.. -',
Agreement i. to provide theexc:hange of c:apacityand enerIYbet:weelltbe
. electric systems of the Parties and to establish the'~erms ,. _d~ODcUtions
of such exchange which is made poasible through interconnection of the systems
of the Parties through the systems of other parties.
....
ARTICLE II
~
2.1 This Agreement shall become effective as of the date of execution
and shall remain in force for a period of one year from that date or as
terminated upon thirty (30) days' notice by either party if no service
schedule is presently in effect or under negotiation; and tbereafter on
a year-to-year basis, unless terminated by either party through written notice
given to the other party at least 180 days in advance of the effective termin-
ation date.
. ARTICLE III
POINTS OF DELIVERY
3.1 Tbe Point of Delivery for the energy supplied hereunder will
be at the 500 Xv transmission system of Edison at the Eldorado Substation
near Las Vegas, Nevada. Vernon will be responsible for transmission arrange-
f
ments from the Point of Delivery to Vernon's System.
3.2 Other additional points of delivery ..y be established between
tbe Parties by the Operating Representatives.
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3.3 '!'be Parties' respective systems are interconnectedtbroush
several third-party systems and as Agreements are entered into between
Vernon or Mevada, or both, and any third party for the purpose of providing
. .
..ervices under this Agreement. those separateqreeaentsWil1_ attached
bereto and made a part hereof a. EXhibits.
ARTICLE IV
SERVICE TO BE RENDERED
4.1 Inasmuch as the specific services to be rendered will vary
during the term of this Agreement, and the terms, arrangements and rates _
applicable to such services -BUst necessarily depend upon the conditions
existing from time to time, it is intended that such specific services
and the terms, arrangements and rates applicable thereto will be set forth
in Service Schedules from time to time formulated between the Parties. Such
Service Schedules, when executed by the Parties, will become parts of the
Agreement during the periods fixed by their respective terms and any such
Service Schedule may be modified or terminated in accordance with its terms.
4.2 Service Schedule A, Emergency Assistance, Service Schedule B,
Economy Energy Interchange, and Service Schedule C. -Banking of Energy, are
attached hereto and made a part of this Agreement.
4.3 The Parties recognize that from time to time there may be mutual
advantages from the sale or interchange of power upon a basis not provided
for in any Service Schedule then in effect and circumstances may be such
t
that arrangements mus t be made promptly in order to realize such advantage.
In such cases. or in cases of emergency or of tes.porary and unUSual operating
conditions, temporary arrangements for transactions .y be _de by the
Operating Representatives provided, however, that no such arrangement shall
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.extend for -.ore than thirty (30) days unless ratified in vritiq by .an
officer representing each of the Parties.
~nCLE V
'SE'I'TLE.MENTS
.5.1 All power transactions hereunder aball"beaccoUnted forontbe
bads of scheduled hourly quantities. All dispatchers involved In the
transactions ahall maintain records of hourly load schedules for accounting
-'"
and operating purposes.
5.2 Except as otherwise provided in a Service Schedule. the accounting
period for transactions hereunder shall be one calendar ~th.
5.3 Except as otherwise provided in a Service Schedule, bills for
amounts payable for any month shall be due by the 20th day after receipt
of bill. Amounts not paid on or before the due date shall be payable with
interest accrued at the rate of one percent (1'%) per month from,due date to
date of,-paymeIit.
5.4 In case a portion of any bill be in dispute. the undisputed
amount shall be paid when due and the remainder, if any, opon determination
of the correct amount. shall be paid promptly aft~r such determination with
interest accrued at the rate of one percent (1'%) per month computed from
the original due date.
ART! CLE VI
4DMINISTRATION
6.1 the Parties agree to appoint "Operating RepJlesentatives" on the
effective date of this Agreement to secure effective coopetation and to deal on
a prompt and orderly basis with the various operating and technical problems
which arise in connection with delivery of power. reciprocal services and
coordina tion.
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6.2 the Operating Representatives shall consist of four (4)
Tepresentativea,two designated by eacb party, and eacb .ucb representative
.hall be authorized on behalf of the party de81gnat1ug him to act with
Tespect to those ..tters berein provided to be re8ponaibilities of the
Operating Representatives. 'lbe functions and respOnsibilities of the '
'Operating Representatives'sball be:
<a> to establish procedures and standard practices
(consistent with the provisions hereof) for the guidance
of load dispatchers and other operating employees as to
matters affecting interconnected operations of the respective
systems, delivery of power, interchange of energy,
reciprocal emergency assistance, and other similar
operating matters;
(b) to establish procedures and practices as to determinations
of costs and expenses and energy losses in connection with
"
the inter~system transactions hereunder;
(c) to establish detailed arrangements for scheduling,
communication and implementation of operating procedures.
(d) to do such other things as are provided for berein;
provided that the Operating Representatives sball have
no authority to modify any of the provisions of this
Agreement.
'I
6.3 The establishment of any procedure or practi~e and any other
4
action or determination by the Operating Representatives shall be effective
When signed by at least one designated representative of each of the Parties.
Each party will notify tbe otber party promptly of the designations of its
Operatin& llepresentatives and of any subsequent changes in such designations.
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ARTICLE VII
GENERAL PROVlSIClfS
7.1 No party ahall be considered to be in default rith respect to
any obligation UDder thia ~reement if prevented froa fUlfill1Dg .uch
obligation by reason of uncontrollable forces. the t~'"vncODtrollable
force." shall mean any c.ause which is beyond the c.ontrol of 'the party
affected and which by exercise of due diligence it shall be unable to
overcome. No party shall. however, be relieved of liability for failure
of performance if such failure is due to causes arising out of its own
negligence or to removable or remediable causes whiCh it fails to remove
or remedy with reasonable dispatch. Nothing contained hereitt shall be
construed to obligate a party to forestall or settle a strike against its
will.
7.2 Each party will defend and indemnifY the other party against
liability, loss, costs and expenses on account of injury or damage to persons
or property occasioned on or adjacent to its facilities, unless it be proven
that such injury or damage resulted from the negligence of the other party;
provided, however, that each party shall be solely responsible for the payment
of claims to its employees and agents for injuries, occurring in connection
with their employment or arising Out of any worker'. compensation law.
7.3 A waiver at any time by a party of its rights with respect to
a default under this Agreement, or with respect to any other matter arising
in connection with this Agreement, shall not be deemed a waiver with respect
.
to any subsequent default or matter. No delay. short of the statutory
,
period of U,m1.tationa, in &81erting or enforcing any right hereund.er shall
be deemed a waiver of such right.
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7.4 Any formal notice, demand, or request provided for in thi.
Agreement, or given or made in connection with thb Agreement, .ball -be
deemed to be properly liven or made if ,personallydeUvered or' -telegraphed
or sent by registered mail, postage prepaid, to the penOn .peclfi~:
To or upon Nevada
, The Secretary
Nevada Power Company
Post Office !ox 230
Las Vegas, _Jevada:8915l
To or upon Vernon
Ci ty of Vernon
c/o Executive Director of Light and power
4305 Santa Fe Avent.1e
Vernon, Cal1fornia90058
A party may at any time, by written notice, change the designation or the
address of the person so specified. This paragraph does not apply to notices
and requests of a routine character in connection with delivery or receipt of
power or in connection with operation of facilities. Such notices and requests
shall be given in such manner as tbe Operating Representatives from time to time
\
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shall arrange.
7.5 This Agreement, including the Service Schedules and tariffs made
a part bereof, shall at all times be subject to such changes or modifications
as shall be ordered from time to time by any legally constituted regulatory
body having jurisdiction to require such changes or &edifications. Nothing
contained herein shall be construed as affecting in any way tbe right of any
party furnishing or receiving service t.1nder this Agreement to unilaterally
..ke applications to the Federal Energy ~egulatory Commission for a cbange in
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rates. charges, classifications or service, or in any rule, regulation or
.
contract reglating thereto, or to petition for investigation of existing rates,
under the Federal Power Act, and purst.1ant to the Comadsl1on' 8 rules and
regulations promulgated thereunder.
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7.6 'l'bil Agreement ,including Serviee,.'ehedules hereunder, '.shall
be binding upon and inure to tbe~enefit8 of the respective successors and
..sign. of tibe parties.. .
IN WITNESS WHEREOF, the .parties bave caused nil ,Agreement to be
executed by their duly authorized officers and their .corporate seal
.-
affixed, as of the day and year first herein written.
"
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NEVADA POWER COMPANY
AT'l'EST:
~~.
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CITY OF VERNOO
ATtEST:
~ ~~~~
A.5~~/d~ ....... .. ....
City Clerk
APPROVED AS 70 FO~:
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. 1tyAttorney
".,
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INTERcaootCTI~ AGREEMENT
between
REV ADA POWER CXl!PANY
and
CITY OF VlRNCIf
.:
SERVICE SCHEDULE A
EMERGENCY ASSISTANCE
l'bis Service Schedule A is agreed upon a8 . part of the, Inter-
. '
connection Agreement (Agreement) entered into as of tbe '17th -day
of December
, 1981, between NEVADA ~ (XIfi)ANY(Nevada) and
CITY OF VERNON, (Vernon).
1. This Service Schedule shall be in effect concurrently wi th
the Agreement unless modified or superseded by aome other Service Schedule
between the Parties.
2. Either party will, upon request of the other party, supply
as emergency assistance such power and energy a. the requesting party
may need to protect or restore services to its customers, aubject to the
availability of such power and energy, including 'without limitation ,the
condition that such supply will not result in impairment of or serious
jeopardy to the supplier's system, its customers, or its cODlJdtments to
third parties, all as determined by the supplier.
3. The receiving party shall pay the supplying party the sum
t
of the following components which shall be determined in accordance with
.
criteria established by the Operating Representatives:
3.1 ODe hundred-fifteen percent (1151) of the incremental
cost of fuel used to generate energy required to make
such aale;
A (1)
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INTERCClmECTICti AGREEMENT
between
lfEVADA PC:M:R OCIn'ANY
and
"CITY OF VDNCIi
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.:;
SERVICE SCHEDULE B
ECONOMY ENERGY INTERCHANGE
This Service Schedule B is agreed upon as apart of the Inter-
connection Agreement (Agreement) entered into as of ,the' 15th 'day
of December
, 198!, between NEVADA ~R OOMPANY (Nevada) and
CITY OF VERNON (Vernon). _
1. This Service Schedule shall be in effect concurrently with
the Agreement unless modified or superseded by some other Service Schedule
between the"parties.
2. Each party will supply economy energy when and if requested
by the other party in amounts up to the capacity of its power 80urces
and transmission interconnections provided that, in the sole judgment
"
of'the supplying party, such economy energy is available and will not
result in impairment of or jeopardy to service in its own system. Each
party shall be the sole judge as to the conditions under which it is
economical and practicable for it to deliver economy energy hereunder.
3. Insofar as
practicable, hourly schedules for economy energy
,
arranged between the system dispatchers on a
,
transactions shall be
tentative basis at least one day in advance, 8ubject to later modification
if unforseen circ~tances arise.
IS (1)
. . ,
A ~,
.
4. Settlement with respect to economy energy a.lea ahaU be equal
to one-balf of the aUlll of coat to tbe allpplying party aDd the .coat AVoided
-~ r":~
:by the receiving party inredllcing its leneration level or lniU~placi'DI
other r\'aUable eneray purchases. '~e coat to.upplyed c:olit.voided ahall '
. "
reflect incremental fuel cost, transmUlOD 't08sel an~.',eh.rge.' ~rthird-
party systems, operation and maintenance C08tB,'8tart-~p costs,f:Ost of
purchased energy, or revenue 1088 from an alternativeeale. Opera~ion and
maintenance costs and start-up costs will be determined by the Operating
Representatives and may be reviewed from time tot1me at the request of
either party.
5. In the event this Service Schedule be terminated pursuant t~
Paragraph 1, the obligations of the Parties with respect to payment for
energy shall continue until payments due have been made.
Executed in duplicate as of tbe
December
17th day of
, 1981.
REV ADA POWER. COMPANY
ATTEST:
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CITY OF VERNON
ATTEST:
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City Clerk '
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APPROVED AS TO FORM:
>\) ~rAf>~~
., Attorney
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: Xlf1'D.CCtmECTION AGREEK!NT
. _ ,between
, cc,_,.)UVADA ~ CXlfPANY
Y and
.- .::. ".CIft OFVlRHON
.
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. ~'SERVlCE SCHEDULE C
BANKED ENERGY
'1'bis Service Schedule C 1s agreed upon as part of the YntercOl1-
~ t
. .
.0 _ .
nection Agreement (Agreement) entered into as of .the15th -il_yof
December ,1981, between NEVADA ~R CXlfPANY (Nevada) and CITY OF
VERNOO (Vernon).
1. 'l'bis Service Schedule shall be in effect concurrently with the
Agreement unless modified or superseded by same other Service SChedule
between the Parties.
2. For the purpose of aChieving efficient utilization of production
capacity, either party may request energy frea the other party and the
other party may, at its sole discretion, deliver suCh power and energy to
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the other party making such request. Either party may also offer energy to
the other party. SuCh power and energy furnished shall be credited to the
supplier in a Banked Energy Account. A record of Bauked Energy shall be
aaintained by each party, and no energy delivered by one party to the other
party sball be deemed to be Banked Energy unless prior arrangement for suCh
, t
delivery bas been _de by the .ystem scheduler. or di8pat~ers of the
Parties hereto.
3. llanked Eneray delivered by either party to the other .ball be
returned at the Point of Delivery at times ad at rates of deliyery 1:0 be
C (1)
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..tabUshed by the system schedulers and shall be l'eturnedktlovatt-hour
10r kilowatt-hour unleuotherw1se aareed ~o by tbeOperat1.1l& aepresentative. ~ .
'-"'fO""
4. lbe Operating aepre.enuttv.s shall 4.teDdne. prtor~o: any , :'
"; . .--- -"
deliveries hereunder, ,settlement f~r ,~ran.m1.sl~loa.es ~ ,cbarl.;~t
- .> -~ ;,
in the Banked Energy Account and may by -.utual agreement settle 8uebaccount
IlI8Y result from energy banking transactioM and ..y' by ':autU( aareement
",<1:> ;:'-, , . , ,
assign a cost per kilowatt-hour for any energy to be aellvered and recorded
or any portion thereof by payment between the Parties.
s.
. . .
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It i8 the intent of the Parties that deliveries 'shall ,be balanced
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by return of energy within .ixty (60) days unless establiehed otherwlseby
the Operating Representatives. All balances will be settled to the extent
practicable once a year at a date to be established by the Operating
Representatives.
6. In the event this Service Schedule be terminated pursuant to
"
Paragraph 1 J the obligations of the Parties with respect to returning energy
shall continue until such energy is returned.
Executed in duplicate as of the
17thayof December
, 1981.
lfEV ADA POWER COMPANY
-,
ATTEST:
By
.,
.JI._
CIlY
.TTEST: :'
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, City Clerk
"~ROVED AS TO FORM:
't>cv-J \). f>~4
City Attorney ,
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