Resolution No. 6289 (2)NEWMAN & HOETZINGER, PC.
ok-
Richard L. Roberta
DIRECT DIAL HUMBER: (202) 95S-6671
1615 L STREET. N W.
WASHINGTON_ D.0 20036-5680
202-9S5-6600
July 13, 1993
Ks. Lois D. Cashell
Secretary
Federal Energy Regulatory Commission
825 North Capitol Street, N.E.
Washington, D.C. 20246
AT6, .
rVA
L
ITUCOPIERt (202) 672-0561
Re: Southern California Edison Company, Docket Nos.
ER81-177 (Phase II), FA85-67, and ER88-83
Dear Ks. Cashell:
Pursuant to Rule 602 of the Commission's Rules of
Practice and Procedure, Southern California Edison Company
("Edison") hereby submits for filing an original and 14 copies of
the "Edison -Vernon 1993 Settlement Agreement" ("Agreement"). The
Agreement has been executed by the Parties, and settles, or
otherwise disposes of, all issues between Edison and Vernon in
the above -referenced proceedings. The Agreement includes:
(1) an executed Amendment No. 1 to the Edison -Vernon Head Firm
Transmission Service Agreement (FERC Rate Schedule No. 207) which
is attached to the Agreement as Appendix A; (2) an Amendment to
the Vernon -Edison Integrated Operations Agreement (FERC Rate
Schedule No. 154) which is attached to the Agreement as Appendix
B and is intended to replace Edison's compliance filing in FERC
Docket No. ER81-177 (Phase II); (3) a newly executed Edison -
Vernon Interruptible Transmission Service Agreement which is
attached to the Agreement as Appendix C; and (4) a revised
partial requirements rate schedule applicable to Vernon (Rate
Schedule FPC No. 13.25) which is attached to the Agreement as
Appendix G. Also enclosed are a separate Explanatory Statement
in support of the Agreement and a draft Letter Order approving
the Agreement by the Commission.
cUL 14 X93
f a3o�zoo3s8
NEWMAN 8c HOLTZINGER. PC.
Ks. Lois D. Cashell
July 13, 1993
Page 2
Edison requests that the Commission find that the
Agreement is fair and reasonable and in the public interest, and
that the Commission therefore approve the Agreement, in its
entirety, without change or condition.
One of the dockets being settled by this Agreement,
Docket No. ER88-83, is currently pending before the Honorable
Joseph R. Nacy. Pursuant to Rule 602(b)(2)(i), the Agreement
should therefore be referred to Presiding Administrative Law
Judge Nacy for certification.
A copy of this letter of transmittal, together With all
attachments and enclosures, is being served this day upon all
persons required to be served by Rule 602(d)(1). Pursuant to
Rule 602(f), comments on the settlement, if any, must be filed on
or before August 2, 1993, and reply comments must be filed by
August 12, 1993. As further provided in that rule, failure to
file comments will be deemed a waiver of all objections to the
settlement.
Thank you for your consideration in this matter.
Respectfully submitted,
Richard L. Roberts
Attorney for Southern
California Edison Company
Enclosures
CCS Presiding Judge Nacy
All Participants
ORIGINAL
UNITED STATE OF AKERICA -
BEFORE THE
FEDERAL ENERGY REGULATORY CO1� USSION ! 3 fat2� Q9
Southern California Edison ) Docket Nos. ER81-177 (phase II),
Company ? FA85-67, and ER88-83
EZPLANATORY STATIO(ENT REGARDING
EDISON-VERNON 1993
SEZTLEM3MT AGREEM3WT
I. Introduction
The Edison -Vernon 1993 Settlement Agreement
(■Agreement') is a global settlement that is intended to resolve,
or establish a framework for the resolution of, virtually every
issue that is currently being litigated between the Southern
California Edison Company ('Edison") and the City of Vernon,
California ("VernonO). ]J The Agreement settles, or otherwise
disposes of, all issues between Edison and Vernon in FERC Docket
Nos. ER81-177 (Phase II), FA85-67, and ER88-83. In addition, the
Agreement also settles an arbitration proceeding between Vernon
and an Edison subsidiary -- Energy Services, Incorporated -- that
operated Vernon's electric system from 1977 to 1989, and a case
1/ Upon Commission approval of the Agreement, the only matter
remaining subject to litigation between Edison and Vernon
will be the interruptible electric bower rate issue in
Docket No. ER81-177-008, that was remanded by the court of
appeals in Citv of Vernon v. FERC, 845 F.2d 1042 (D.C. Cir.
1988). Under the Agreement, Edison and Vernon agreed to
file a joint motion, which was filed on July 8, 1993, to
hold in abeyance for nine months any decision in Docket
No. ER81-177-008 on the remanded issue, to permit settlement
negotiations on that issue (see Section 5.14).
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that is currently pending between Edison and Vernon, on remand,
in federal district court.
Provided below are a brief description of the FERC
proceedings that are the subject of this Agreement, and a summary
of the Agreement's principal settlement terms. All section
references, unless otherwise stated, are to the Agreement.
II. Settlement of FERC Proceedinas
Docket No. ER81-177 (Phase II):
Edison initiated Docket No. ER81-177 on December 16,
1980, with the filing of a rate increase for electric service to
its wholesale customers. Edison's filing was protested by
Vernon, as well as by the Cities of Anaheim, Azusa, Banning,
Colton, and Riverside. Subsequently, the proceeding was
separated into two phases, with Phase I to address rate issues
and Phase II to address the reasonableness of Edison's Integrated
Operations Agreements (■IOAs") with certain of its wholesale
customers. The ComaLission issued opinion Nos. 289 and 289A
deciding the issues in ER81-177 (Phase II). 2/ Shortly before
the issuance of Opinion No. 289A, Edison entered into a
settlement with the Cities of Anaheim, Azusa, Banning, Colton,
2/ Southern California Edison Comnanv, 41 FERC T 61,188 (1987),
reh'q denied, 52 FERC 1 61,299 (1990). The Commission had
previously issued Opinion Nos_ 261 and 261A in Phase I.
Southern California Edison Comnanv, 38 FERC T 61,040 (1987),
reh'o denied, 39 FERC 1 61,046 (1987).
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and Riverside, resolving, inter alia, all issues in ER81-177
(Phase II) as to those customers. 3/
Edison tendered its compliance filing in response to
Opinion Nos. 289 and 289A on September 13, 1991 and Vernon filed
protests to Edison's compliance filing on October 9, 1992. As
Appendix B to this Agreement, Edison is submitting a revised
compliance filing in ER81-177 (phase II) which Vernon supports
(see Sections 5.10 and 6.1). Thus, the Agreement resolves all
remaining issues in Docket No. ERSI-177 (Phase II) and permits
the termination of that docket.
Docket No. FA85-67:
In Docket No. FA85-67, the FERC Staff conducted a
financial audit of Edison's books and records for the period
January 1, 1982, through December 31, 1984. Southern California
Edison Company., 40 FERC 1 61,124 (1987). As a result of that
audit, Edison adjusted its Fuel Cost Adjustment ('FCA•) billings
to Vernon from March 1, 1982, through June 4, 1988, and to other
wholesale customers from March 1, 1982, through May 31, 1987.
During these periods, the wholesale rates in effect were
implemented through the general rate increases filed with the
FERC in Docket Nos. ER81-177, ER82-427, ER84-75, and ER86-271.
Edison's recomputation of the billings under the applicable FCA
3/ The Commission approved that settlement on July 30, 1990.
Southern California Edison Company, 52 FERC 1 61,154 (1990).
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showed that Vernon should receive a refund and other wholesale
customers owed Edison additional amounts which Edison proposed to
apply against future anticipated refunds to those customers.
Vernon and other wholesale customers filed protests and
motions to intervene in the audit proceeding. FERC has not yet
issued a decision on those protests. On December 31, 1992,
Edison filed a settlement agreement with five of its other
wholesale customers, the Cities of Anaheim, Azusa, Banning,
Colton, and Riverside, resolving, among other issues, all of
those customers' protests to Edison's compliance with FERC's
Order in Docket No. FA85-67. As part of the present Agreement,
Vernon has agreed to withdraw its protest as well (see Sections
6.2 and 6.3).
Docket No. ER88-83:
On November 7, 1987, Edison filed with the Commission
in Docket No_ ER88-83 proposed changes in its rates for wholesale
electric service to Vernon. Vernon protested Edison's filing and
alleged various •competition' issues. The Commission accepted
Edison's filing, suspended the rate, and set the case for
hearing. Southern California Edison Comx3anv, 42 FERC 1 61,001
(1988). On November 29, 1990, Edison and Vernon executed a
settlement agreement that resolved some, but not all, of the
issues raised by Vernon in Docket No. ER88-83 (hereinafter '1990
Settlement Agreement'). The Commission approved the 1990
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Settlement Agreement on February 27, 1991. Southern California
Edison Company, 54 FERC 1 61,216 (1991).
To delineate the issues that remained, the 1990
Settlement Agreement included in section 7.5 a list of seven
issues (denoted 7.5(a) through 7.5(g)) that the parties agreed
would be the only issues that would remain subject to litigation
in that case. In the present Agreement, Edison and Vernon have
settled four of the remaining seven issues, and partially settled
a fifth (seg Section 6.1), and Vernon has agreed to withdraw,
without prejudice, the remaining issues (see Section 5.21). As a
result, the Agreement disposes of all issues in Docket No. ER88-
83 and permits the termination of that docket.
III. Descrimtion of xaior Settlement Terms
Although the provisions of the Agreement are
controlling, the major settlement terms can be summarized as
fol lows:
1. Lumn Sum Pavments: Section 5.18 of the Agreement
provides for a lump sum payment by Edison to Vernon of
$4,392,699, plus interest. 4/ This amount is in full or
partial settlement of each and every issue arising between Edison
and Vernon that is the subject of the Agreement other than the
J Interest under the Agreement is to be computed in accordance
with the Commission's regulations at 18 C.F.R. § 35.19a
(1992) (see Section 5.20).
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issues relating to Docket No. FA85-67. 5/ No portion of this
payment should be attributed to any specific issue; no such
breakdown has been developed, and Edison and Vernon each have
their own opinion as to the value of each of the issues addressed
by this lump sum payment. In settlement of Docket No. FA85-67,
the Agreement provides for an additional payment by Edison to
Vernon of $2,900,000, plus interest.
2. Control Area Imnort Limitations_ One of the
issues remaining in Docket No. ER88-83 is whether, and to what
extent, Vernon should be permitted to import non-firm energy into
the Edison control area during system conditions, such as minimum
load, that limit the amount of energy that may be imported into
the control area overall. Vernon has taken the position that it
is inappropriate for Edison to place any restriction on Vernon's
imports into the control area for non -transmission related
limitations. Edison has maintained that such restrictions are
reasonable because, among other things, Vernon operates within,
and as part of, Edison's control area, and because the need for
Edison to plan to meet Vernon's on -peak demand contributes to the
import limitations suffered during other, mostly off-peak,
periods. In other words, Edison contends, the control area has
5/ This amount includes, in addition to settlement of issues
presently being litigated between the parties, payment by
Edison to Vernon of the present value of a certain reduction
in Edison's capacity and energy rates agreed to in Section
8.3(a) of the 1990 Settlement Agreement (relating to
Edison's purchases from affiliated QFs).
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too much on-line generation in the off-peak periods, thereby
creating control area import limitations during minimum load
hours, partly because of the need to maintain sufficient
generation on-line to meet Vernon's on -peak demand.
For purposes of settlement, Edison and Vernon have
agreed that Vernon's imports into the control area of non-firm
energy will not be restricted as a result of control area import
limitations (see Section 5.1). Vernon will be required to
purchase from Edison during each hour of all off-peak periods in
which Vernon is importing certain non-firm energy into the
control area no less than two-tenths of one megawatt of energy
for each megawatt of Coincident Peak Demand (defined in Section
4.2) Vernon imposed on Edison for the immediately preceding on -
peak period (see Section 5.2).
3. Excess Non-Intearated Energv. Excess Energy. and
Test Eneray.: Also remaining in Docket No. ER88-83 are issues
relating to the treatment to be accorded: (1) energy scheduled by
Vernon from a non-integrated source or sources that exceeds the
amount of capacity noticed by Vernon for such sources (termed
'Excess Non -Integrated Energy' and defined more fully in Section
4.8); (2) energy scheduled into or within the Edison control area
to meet Vernon's energy requirements that exceeds such energy
requirements (termed 'Excess Energy' and defined more fully in
Section 4.7); and energy generated by Vemon's non-integrated
sources during pre -operational testing (termed 'Test -Energy' and
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defined more fully in Section 4.24). For purposes of settlement,
Edison and Vernon agreed to address these issues in three ways.
First, the lump -sum settlement amount provided for in
Section 5.18 (as described above) includes payment to Vernon for
all past Excess Non -Integrated Energy, Excess Energy, and Test
Energy. Second, Section 5.3 of the Agreement states that Edison
will, prospectively, provide Vernon with credit on its partial
requirements billings for Excess Non -Integrated Energy and Test
Energy to the extent such energy does not exceed the amount of
partial requirements energy that could otherwise be purchased
from Edison in the hour in which such Excess Non -Integrated
Energy or Test Energy is generated. Finally, to the extent
Vernon imports Excess Energy or Test Energy in excess of its
energy requirements, the Agreement establishes an Energy
Deviation Account (see Section 5.4) and a Test Energy Deviation
Account (see Section 5.5) into which Vernon may deposit and
withdraw such energy. Edison is also required to purchase Excess
Energy from Vernon to the extent such energy exceeds certain
prescribed limits tree Section 5.4.1), and Edison is required to
purchase Test Energy from Vernon to the extent it is not
withdrawn within seven days of deposit (see Section 5.5.2). 6/
4. Inteqration of Non -Firm Enercv and WSPP
Membership: In Section 5.7 of the Agreement, Vernon agrees to
6/ Such purchases are to be made at 85 percent of Edison's
Hourly System Incremental Cost for the hours in which such
energy was generated.
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integrate all non-firm energy in accordance with its Palo Verde
Integrated Operations Agreement ('PV IOA•) or any other
applicable IOA. The parties also agree to eliminate the
requirement that Edison and Vernon execute separate supplemental
agreements for the integration of each of Vernon's individual
non-firm energy resources. Instead, Section 5.7 establishes a
notice and review procedure for the integration of each specific
non-firm energy resource.
As a result of, inter alia, Vernon's agreement to
integrate non-firm energy in accordance with an TOA, Edison
agrees that Vernon meets the qualifications for membership in the
Western Systems Power Pool ('WSPP'). Section 5.16 of the
Agreement requires Edison to formalize this agreement by
executing and sending to Vernon a letter in the form of
Appendix D to the Agreement stating that Vernon and Edison have
entered into the necessary contractual arrangements for Vernon to
operate in Edison's control area for WSPP purposes, and that
Edison supports Vernon's membership in the WSPP.
5. Amendment to PV IOA: As part of the Agreement, an
Amendment No. 1 to the PV IOA is being filed to replace the
Amendment No. 1 previously tendered by Edison as its compliance
filing in Docket No. ER81-177 (Phase II) (see Section 5.10).
This amendment to the PV IOA is attached to the Agreement as
Appendix B. Vernon agrees to accept the modified compliance
SMOM
filing as full compliance with the Commission's orders in Docket
No. ER81-177 (Phase I =) as they relate to Vernon.
For consistency with the modifications to the PV IOA,
Edison and Vernon have also agreed to modify the definition of
'Contract Energy* in Eclison's partial requirements rate schedule
applicable to Vernon (]Rate Schedule FPC No. 13.25). The
applicable portion of the revised partial requirements rate
schedule is attached t o the Agreement as Appendix G_
6. Presclieclulinq: Section 5.11 of the Agreement
provides that Edison will preschedule for Vernon the purchase of
non-firm energy which is transmitted using interruptible
transmission service from Edison. This settles another of the
issues remaining in Racket No. ER88-83. Edison and Vernon are to
attempt to agree to procedures applicable to such prescheduling.
If the parties are unable to reach agreement after a reasonable
effort, Vernon shall be permitted to use any available procedure
to obtain compliance by Edison with its commitment to preschedule
under procedures that are just and reasonable.
7. Amendmerit to Mead Firm Transmission Service
Agreement: As part oJE the overall settlement agreement, Edison
and Vernon have agreed to amend the Edison -Vernon Mead Firm
Transmission Service Agreement, FERC Rate Schedule No. 207 (see
Section 5.12). The ex4ecuted amendment is being filed as
Appendix A to the AgrE2!ER!ment. The amendment, among other things,
increases the amount of firm transmission service available to
Vernon under the Mead Firm Transmission Service Agreement to
26 MW (it currently provides for 22 MW) and changes the character
of the service from resource -specific, to a pipeline -type service
available for any use during peak periods from the effective date
of the amendment until December 31, 1994, and available in all
hours beginning on January 1, 1995. This amendment will become
effective upon Commission approval of the Agreement, of which
Amendment No. 1 to the Mead Firm Transmission Service Agreement
is a part, without change or condition unacceptable to Edison or
Vernon.
8. Matrix ITS Agreement: As part of the Agreement, a
new Edison -Vernon Interruptible Transmission Service Agreement
(•Matrix ITS Agreement'), executed by Edison and Vernon, is being
filed as Appendix C (see Section 5.13). This agreement partially
resolves one of the remaining issues in Docket No. ER88-83. The
Matrix ITS Agreement provides Vernon with interruptible
transmission service to and from numerous points of
interconnection on the Edison transmission system. The Matrix
ITS Agreement will become effective upon Commission approval of
the Agreement, of which the Matrix ITS Agreement is a part,
without change or condition unacceptable to Edison or Vernon_
9. Develonment of New ODeratinq Arrangements:
Section 5.15 of the Agreement establishes procedures for the
development of new arrangements for the integrated operation of
Vernon's resources with Edison's electric system. Under these
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procedures, Edison and Vernon are to commence negotiations for
such arrangements no later than six months following a final
Commission order approving the Agreement. Vernon will then have
the right, any time between July 1, 1995, and December 1, 1996,
on a one-time basis, to submit a written demand that Edison
deliver a draft operating arrangement, together with supporting
testimony, that Edison, at Vernon's request, would then be
required to file unilaterally with the Commission. These
procedures are intended, among other things, to settle the
remanded issues in Citv of Vernon v. Southern California Edison
Comnanv, 955 F.2d 1361 (9th cir. 1992), currently pending in
federal district court.
During the pendency of the negotiations for the
development of a new operating arrangement, Edison and Vernon
have agreed, tentatively, on two matters_ Specifically, Edison
and Vernon have agreed that, during the negotiating period,
Vernon will not be required to take energy in excess of its
capacity credit for its Palo Verde resource (see Section 5.19),
and that, under certain circumstances, Edison will waive the
notice requirements for non-integrated resources provided in
Special Condition 12 of Vernon's partial requirements rate
schedule where those non-integrated sources are used as
replacement resources for existing non-integrated sources (see
Section 5.22). As expressly stated in the Agreement, however,
these tentative resolutions are non -precedential, are provided
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without prejudice to the positions of either party, and may not
be offered in evidence or otherwise asserted as a basis for
resolution of any issue.
10. Duration of Settlement Provisions: Although the
Agreement does not contain an express termination provision,
Section 5.23 establishes the intended duration of many of the
Agreement's key terms. As set forth therein, several of the
provisions of the Agreement (Sections 5.1, 5.2, 5.9 and 6.1) are
to be coextensive with the applicability of the PV IOA or any
other IOA between the parties; several other provisions (Sections
5.3, 5.4, 5.5 and 5.7) are coextensive with the applicability of
Special Condition 12 of Vernon's partial requirements rate
schedule; and the remaining provisions of the Agreement, unless
otherwise provided in those provisions, are binding in
perpetuity.
IV. Conclusion
The Edison -Vernon 1993 Settlement Agreement represents
a mutually satisfactory resolution of numerous issues between
Edison and Vernon in three separate proceedings before this
Commission. It is fair and reasonable and in the public
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interest. Edison therefore respectfully requests that the
Commission approve the Agreement Without change or condition.
Respectfully submitted,
/SteppLn�E. Pickett
Thomas E. Taber
Southern California Edison Company
2244 Walnut Grove Avenue
Rosemead, CA 91770
(818) 302-1903
Richard L. Roberts
Newman & Holtzinger, P.C.
1615 L Street, N.W.
Washington, D.C. 20036
(202) 955-6600
Attorneys for
Southern California Edison Company
Dated: July 13, 1993
In Reply Refer To:
Docket Nos. ER81-177 (Phase II),
FA85-67,
and ER88-83
Newman & Holtzinger, P.C.
Attention: Richard L. Roberts
Attorney of Southern California
Edison Company
1615 L Street, N.W., Suite 1000
Washington, D.C. 20036
Dear Mr. Roberts:
On July 13, 1993, you filed a Settlement Agreement
between Southern California Edison Company and the City of
Vernon, California. On , 1993, the Presiding Judge
in Docket No. ER88-83 certified the uncontested settlement to the
Commission.
The subject settlement appears to be fair and
reasonable and in the public interest and is hereby approved.
The settlement agreement and the new and amended rate schedules
filed with the settlement are accepted for filing, are designated
as shown on the Enclosure, and shall become effective in
accordance with their terms. Please advise the Commission of
these effective dates. The Commission's approval of this
settlement does not constitute approval of, or precedent
regarding, any principle or issue in these proceedings.
This letter terminates Docket Nos. ERSI-177 (Phase II)
and ER88-83.
By direction of the Commission.
Secretary
Enclosure
cc: All Parties
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this day served the
foregoing document by first class mail, upon each person on the
official service list compiled by the Secretary in these
proceedings.
Dated at Washington, D.C., this 13th day of July, 1993.
hard L. Roberts
Newman & Holtzinger, P.C.
1615 L Street, N.W.
Suite 1000
Washington, D.C. 20036
(202) 955-6600
9� 13 P:; 2: 09
9
;Sic"
0 EDISON-VERNON
w
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6
1993 SETTLEMENT AGREEMENT
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0
ORIGINAL
•
0
1.
PARTIES ................................................. ....................................................................... 1
•
2.
RECITALS.....................................................................................................................1
2.1
EDISON.............................................................................................................1
2.2
VERNON............................................................................................................1
2.3
ESI......................................................................................................................2
2.4
DOCKET NO. ER88-83 AND RELATED SE'iTCEMENT................................2
2.5
ESI ARBITRATION..........................................................•---.............................2
2.6
ER81-177 (PHASE ED COMPLIANCE FILING.................................................3
•
2.7.
DOCKET NO. FA85-67......................................................................................3
2.8
VERNON DISTRICT COURT CASE.................................................................4
2.9
SETILEMENT INTENT .........................------------...............................................4
3.
AGREEMENT................................................................................................................5
4.
DEFINI'I'IONS ....................................................................-•---.......................................5
4.1
AGREEMENT.................................................................................................... 5
•
4.2
COINCIDENT PEAK DEMAND........................................................................ 5
4.3
CONTROL AREA 114PORT LD&TATIONS.....................................................6
4.4
DAILY PEAK PERIOD............ ........................................ --------•--.......................6
•
4.5
DIESEL GENERATION .....................................................................................7
4.6
ENERGY DEVIATION ACCOUNT .................................... .....7
4.7
EXCESS ENERGY.............................................................................................7
i
4.8
EXCESS NON-INTEGRATED ENERGY..........................................................7
4.9
FERC...............................................................•----......................
4.10
HOUR................................•-........---............---....................---....---•-----.................7
•
4.11
HOURLY SYSTEM INCREMENTAL COST .................................................... 8
0
•
•
Table Of Contents (Continued)
'r•
4.12 INTEGRATED SOURCES.................................................................................8
•
41
u
4.13
IOA................................................................:.................................................... 9
4.14
MID -PEAK PERIOD..........................................................................................9
•
4.15
NON-INTEGRATED SOURCES........................................................................9
4.16
OFF-PEAK PERIOD...........................................................................................9
4.17
ON -PEAK PERIOD............................................................................................9
•
4.18
PARTIAL REQUIREMENTS RATE.................................................................9
4.19
PV IOA...............................................................................................................
9
4.20
REGULATORY APPROVAL.............................................................................
9
•
4.21
REPLACEMENT ENERGY.............................................................................10
4.22
REQUIREMENTS...........................................................................................10
4.23
STACKING ISSUE ...........................................................................................
10
•
4.23.1 VERNON'S DEFINITION OF STACKING ISSUE ............................11
4.23.2 EDISON'S DEFINITION OF STACKING ISSUE ..............................
I 1
4.24
TEST ENERGY................................................................................................12
•
4.25
TEST ENERGY DEVIATION ACCOUNT' ......................................................12
4.26
THIRD PARTY.....................................................................•---------------........---.12
4.27
TIIVIE PERIOD..................................................................................................12
4.28
WORKDAY ................................................• ---........._.......................................13
5. TERMS OF S........................................................................................13
5.1
VERNON IMPORTATION OF NON-FIRM ENERGY INTO EDISON
CONTROL AREA .....................................................................---.........._ ..........13
•
41
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Table Of Contents (Continual)
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IV
6
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5.4.4 DEPOSITS OF TEST ENERGY IN ENERGY DEVIATION
ACCOUNT.........................................................................................18
5.4.5 VERNON OBLIGATION TO MINIMIZE ENERGY IN THE
t
ENERGY DEVIATION ACCOUNT ..................................................
18
5.5
TEST ENERGY DEVIATION ACCOUNT ......................................................
19
5.5.1 RATE OF WITHDRAWAL FROM TEST ENERGY
DEVIATION ACCOUNT...................................................................19
5.5.2 CLEARING OF TEST ENERGY DEVIATION ACCOUNT..............19
5.5.3 VERNON ACCOUNTING FOR TEST ENERGY DEVIATION
ACCOUNT............................................................... ....... ...................
20
5.5.4 LIMITATION ON USE OF VnT DRAWALS..................................
20
5.5.5 VERNON OBLIGATION AS TO SCHEDULING TESTING
OF NON-EWMGRATED SOURCES .................................................
20
5.6
ACCOUNTING PROCEDURES FOR ENERGY DELIVERED OR
WITHDRAWN FROM DEVIATION ACCOUNTS ..........................................21
10
5.7
NO LIMITATION ON VERNON SALES FROM NON-INTEGRATED
SOURCES.........................................................................................................
21
5.8
ENERGY DEVIATION ACCOUNT AND TEST ENERGY
DEVIATION ACCOUNT DO NOT RESOLVE STACKING ISSUE ...............
22
5.9
VERNON TO INTEGRATE NON-FIRM ENERGY IN ACCORDANCE
WITHPV IOA..................................................................................................
23
0
IV
6
0
Table Of Contents (Continued)
0
r.
v
5.9.1 VERNON TO PROVIDE EDISON INFORMATION
REQUIREDBY PV IOA...................................................................23
5.9.2 EDISON REVIEW OF VERNON INFORMATION ...........................
23
r
5.9.3 VERNON TO NOTIFY EDISON OF CHANGES IN NON-
FIRM ENERGY RESOURCES......................................................... 24
5.9.4 AMENDMENT TO PV TOA.............................................................. 24
5.10
AMENDMENT TO COMPLIANCE FILING IN FERC DOCKET NO.
ER81-177 (PHASE II).......................................................................................24
5.11
EDISON COMMITMENT TO PRESCHEDULE UTMRRUPTTBTE
i
TRANSMISSION SERVICE............................................................................
25
5.12
AMENDMENT TO THE EDISON-VERNON MEAD FIRM
TRANSMISSION SERVICE AGREEMENT ...................................................
26
5.13
EDISON-VERNON MATRIX INTERRUPTIBLE TRANSMISSION
SERVICE AGREEMENT................................................................................26
5.14
MOTION TO HOLD IN ABEYANCE FURTHER PROCEEDINGS
RELATIVE TO REMANDED ISSUES IN FERC DOCKET NO.
ER81-177..........................................................................................................
26
5.15
NEGOTIATIONS FOR DEVELOPMENT OF OPERATING
ARRANGEMENTS BETWEEN EDISON AND VERNON .............................
26
5.15.1 AREAS FOR NEGOTIATIONS ............................................................
27
5.152 PROCEDURE LEADING TO UNILATERIAL FILING.......................27
i
5.15.3 VERNON'S RIGHTS IF EDISON DOES NOT FILE ............................
29
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Table Of Contents (Continued)
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5.15.4 RIGHT TO FILE UNDER 1990 SETTLEMENT AGREEMENT .......... 29
5.15.5 LIMITATION ON VERNONS RIGHT TO RAISE STACKING
ISSUE.............................................. .................................. I...................
30
5.16
WSPP MEMBERSHIP ......................................................................................30
5.17
EDISON PAYMENT TO VERNON REGARDING FERC DOCKET NO.
FA85-67............................................................................................................ 30
1
5.18
EDISON PAITMENT TO VERNON FOR ALL OTHER ISSUES
SE'T'TLED IN THIS AGREEMENT..................................................................31
5.19
EFFECT OF THIS AGREEMENT ON SUBSEQUENT LITIGATION
1
CONCERNING THE STACKING ISSUE.......................................................31
5.20
INTEREST........................................................................................................
33
5.21
VERNON WiI%IDRAWAL OF CERTAIN ISSUES..........................................33
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5.22
VERNON MAY REPLACE NON-INTEGRATED SOURCE WITHOUT
COMPLYING WI'T'H NOTICE PROVISION....................................................34
5.23
EFFECTIVENESS OF SETTLEMENT PROVISIONS.....................................35
1
5.23.1 EFFEC:'ITVENESS OF SECTIONS 5.1, 5.2, 5.9 AND 6.1 ...................
35
5.23.2 EFFECTIVENESS OF SECTIONS 5.3, 5.4, 5.5 AND 5.7 ...................35
5.23.3 EFFECEIVENESS OF ALL v r rimr, PROVISIONS ...........................
36
1
6. SETTLEMENT OF DISPETI'F.S....................................................................................
36
6.1
FERC DOCKET NO. ER88-83.........................................................................36
6.2
FERC DOCKET NO. FA85-67.........................................................................
36
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Table Of Contents (Continued)
6.3 EFFECT ON RATES AND REFUNDS IN FERC DOCKET NOS. ER81-
0
177, ER82427, ER84-75, AND ER86-271.......................................................37
6.4 FERC DOCKET NO. ER81-177 (PHASE 11) ....................................................
38
6.5 QF RATE ISSUES IN 1990 SETTLEMENT AGREEMENT ............................
38
6.5.1 METHODOLOGY OF APPLICATION NO. 87-02-00 CANNOT
BE CONVERTED TO BE APPLICABLE TO EDISONS
RECOVERY OF REVENUE.................................................................38
6.5.2 SETTLEMENT AMOUNT SETTLES EDISONS QF
OBLIGATIONS IN DOCKET NO. ER88-83.........................................38
6.5.3 EDISONS QF OBLIGATIONS UNDER DOCKET NO. ER88-83
AREEULFTLLED................................................................................39
6.5.4 VERNON WAIVES RIGHT TO ANY CLAIM AGAINST
EDISON WITH REGARD TO EDISON'S PURCHASES FROM
AFFILIATED QFS................................................................................ 39
6.5.5 VERNON WAIVER DOES NOT EXTEND TO PURCHASES
WHICH EDISON MADE FROM NON-AEFUJ ATED QFS ... :.............
39
6.5.6 VERNON WAIVES RIGHT TO CHALLENGE
REASONABLENESS FOR RATEMAKING PURPOSES ....................40
6.6 VERNON RIGHT TO REFUND FROM PROCEEDINGS BROUGHT
BY WHOLESALE CUSTOMER......................................................................40
6.7 ESI ARBITRATION .........................................................................................41
6-8 VERNON DISTRICT COURT CASE...............................................................41
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Table Of Contents (Continued)
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7.
REGULATORY APPROVAL......................................................................................42
7.1 FILING OF THIS AGREEMENT FOR REGULATORY APPROVAL ............42
7.2 REVIEW OF FERC ORDER APPROVING SEi'17.EMENT ............................
42
r
8.
PROHIBITION AGAINST LITIGATION....................................................................44
8.1 NO LITIGATION ........................................................................................•....44
8.2 PROHIBITION EXTENDS TO CLAIMS KNOWN AND UNKNOWN ........... 44
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8.3 CALIFORNIA CIVIL. CODE SECTION 1542 ..................................................45
9.
NONPRECEDENT AND RESERVATION OF RIGHTS .............................................45
9.1 NO PRECEDENT OR AGREEMENT TO PRINCIPLES AND
t
METHODOLOGIES..............................................•.......................................... 45
9.2 NO ADMISSION BY EDISON OR VERNON.................................................46
10.
O HER CONDITIONS................................................................................................46
10.1 AGREEMENT CONDITIONED UPON REGULATORY APPROVAL ........... 46
10.2 AGREEMENT IS A NEGOTIATED SETTLEMENT ......................................
46
10.3 PARTIES MAY NOT WITHDRAW FROM AGREEMENT ............................47
10.4 AGREEMENT NOT TO BE OFFERED AS EVIDENCE ......................
11.
PREVIOUS CON MUNICATiONS..............................................................................47
12.
NONSEVERABELXrY..................................................................................................47
13.
COSTS OF FILING......................................................................................................48
14.
NONWAIVER..............................................................................................................4H
15.
GOVERNING LAW AND REGULATIONS ................................................................48
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Table Of Contents (Continued)
APPENDICES
APPENDIX A:
APPENDIX B:
APPENDIX C:
APPENDIX D:
APPENDIX E:
APPENDIX F.
APPENDIX G
I:� 3.1�►171:a.1
AMENDMENT NO. I TO THE EDISON-VERNON MEAD
FIRM TRANSMISSION SERVICE AGREEMENT
AMENDMENT NO. t TO THE PV IOA
EDISON-VERNON INTERRUPTIBLE TRANSMISSION
SERVICE AGREEMENT
WSPP LETTER
LETTER TO FITZSIMONS
LETTER TO SU RIEVER
REVISED PARTIAL REQUIREMENTS RATE SCHEDULE
13 CONTRACTS
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EDISON-VERNON 1993 SIZZW29 iR' AgBZZkg NT S? �� •1 ` ;
L 13 pr.l 2.09
This Agreement is entered into by and among the City of
Vernon, California ( "Vernon•) , a municipal corporation, Southern
California Edison Company ("Edison'), a California corporation,
and Energy Services, Incorporated ( `ESI') , a California
corporation, hereinafter sometimes referred to collectively as
the • Part les-, ` and individually as a 'Party. •
2. Recitals
IP This Agreement is made with reference to the following
facts, among others:
2.1 Edison is an investor-owned public utility doing
business 1n the State of California and is subject to the
jurisdiction of FERC with respect to the provision of electric
service to Vernon.
2.2 Vernon owns a municipal electric utility that it
operates within, and as part of, the Edison control area. Vernon
owns capacity resources, purchases capacity and energy
requirements from Edison under the Partial Requirements Rate, and
D
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•
•
purchases capacity and firm and non-firm energy from Third
Parties.
2.3 ESI is a wholly-owned subsidiary of Edison that
• operated Vernon's electric transmission and distribution system
•
from May 1, 1977 to July 1, 1989, pursuant to an operating
agreement with Vernon executed on December 20, 1977.
2.4 On November 5, 1987, Edison filed a proposed
increase in resale rates applicable to Vernon in FERC Docket No.
ER88-83. Vernon protested said rate filing. On November 29,
1990, the Parties executed a settlement agreement resolving some,
but not all, of the issues raised by Vernon in Docket No. ER88-83
(hereinafter 01990 Settlement Agreement'). FERC approved that
settlement agreement by order dated February 27, 1991.
2.5 On May 17, 1989, Vernon filed a Demand for
• Arbitration against ESI with the American Arbitration Association
('AAA•) which was docketed by AAA as Case No. 72-199-0468-89
(hereinafter 'ESI Arbitration'). Vernon's Demand for Arbitration
• concerned Vernon's rights to keep or copy certain documents
located at Edison's Vernon District Office, and requested, in the
alternative, an accounting of certain charges to Vernon by ESI.
• On June 13, 1989, ESI filed a Response and Counterclaim that
denied Vernon's claims and asserted a counterclaim for an
accounting of certain services and material.
•
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2.6 On September 13, 1991, Edison filed its compliance
filing in FERC Docket No. ER81-177 (Phase II) in response to FERC
Opinion Nos. 289 and 289A. Vernon protested said compliance
filing on October 9, 1991. FERC has not yet issued a decision
regarding said compliance filing.
2.7 In FERC Docket No. FA85-67, the FERC staff conducted
a financial audit of Edison's books and records, for the period
January 1, 1982, through December 31, 1984. As a result of that
audit, Edison adjusted its Fuel Cost Adjustment ('FCA') billings
to Vernon from March 1, 1982, through June 4, 1988 and to other
wrolesale customers from March 1, 1982, through May 31, 1987.
During these periods, the wholesale rates in effect were
implemented through the general rate increases filed with the
FERC in Docket Nos. ER81 -177, ER82-427, ER84-75, and ER86-271.
Edison's recomputation of the billings under the applicable FCA
showed that Vernon should receive a refund and other wholesale
0 customers owed Edison additional amounts which Edison proposed to
apply against future anticipated refunds to these customers.
Vernon and other wholesale customers filed protests and motions
0 to intervene in the audit proceeding. FERC has not yet issued a
decision on these protests. On December 31, 1992, Edison filed a
settlement agreement with five of its other wholesale customers,
9 the cities of Anaheim, Azusa, Banning, Colton, and Riverside,
resolving, among otter issues, all of those customers' protests
to Edison's compliance with FERC's Order in Docket No. FA85-67.
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2.8 In 1983, Vernon filed against Edison an antitrust
suit in the United States District Court for the Central District
1
of California ('District Court'), in Docket No. CV83-8137 MRP
D
(•District Court case')_ By order dated August 30, 1990, the
District Court entered summary judgment for Edison, and against
Vernon, on all issues in that case. Vernon appealed the District
Court's decision to the United States Court of Appeals for the
Ninth Circuit ('Court of Appeals•). On February 7, 1992, the
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Court of Appeals issued a decision affirming in part, and
reversing and remanding in part, the District Court's decision.
RIVE
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b (9th Cir. 1992). Vernon
petitioned the United States Supreme
Court for certiorari with respect to the decision of the Court of
Appeals, and the United States Supreme Court denied Vernon's
0 Petition on October 5, 1992. The issues remanded by the Court of
Appeals are currently pending before the District Court.
P 2.9 This Agreement is intended to settle: (1) those
issues in FERC Docket No. ER88--83 identified in Sections 7.5(a)
(b), (c), and (d) of the 1990 Settlement Agreement, (2) all
0 issues in the ESI Arbitration, (3) all issues raised in Vernon's
protest to Edison's compliance filing in FERC Docket No. ER81-177
(Phase II), (4) all issues raised in Vernon's protest to Edison's
0 compliance with FERC's order in Docket No. FA85-67, and (5) all
issues remanded by the Court of Appeals in the District Court
case. With respect to those issues in FERC Docket No. ER88-83
0 identified in Sections 7.5(e), (f),,and (g) of the 1990
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Settlement Agreement, Vernon withdraws those issues without
prejudice such that no issues remain before the FERC in Docket
No. ER88-83.
3. Aareement
In consideration of the covenants and conditions herein, the
Parties agree as follows:
4. R-efiritions
Whenever used in this Agreement, the following terms, when
initially capitalized, shall have the meanings set forth in this
Section 4. The singular of any definition shall include the
plural and the plural shall include the singular.
4.1 Agreement: This Edison -Vernon 1493 Settlement
Agreement, including all appendices hereto.
4.2 Coincident Peak Demand: As to each Daily Peak
Period, the average kilowatt demand, measured at Edison's point
of delivery to the Vernon electric system, during that Daily Peak
Period; less Vernon's capacity credits expressed in kilowatts, if
any, determined in accordance with an IOA; less the coincident
generation, adjusted for losses and expressed in kilowatts, if
any, from Non -Integrated Sources accepted by Edison and located
on the supply side of Edison's point of delivery to Vernon; plus
the coincident generation, adjusted for losses and expressed in
kilowatts, if any, from sources which are under contract for
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delivery to Edison and which are located on the load side of
Edison's point of delivery to Vernon; plus the amount, adjusted
for losses and expressed in kilowatts, if any, by which the
installed capacity of Non -Integrated Sources is operated in
excess of the capacity for which Vernon gave notice to Edison
pursuant to Special Condition 12 of the Partial Requirements
Rate.
4.3 Control Area Import Limitations: Those conditions
on Edison's electric system that, for technical, functional, or
economic reasons, limit the total amount of energy that may be
imported into the Edison control area, including, without
limitation, minimum load conditions, low regulating margins,
inertia limitations, and excessive ramp requirements. Control
Area Import Limitations do not include factors limiting the
availability of transmission facilities for the purpose of
providing transmission service, such as transmission line
loadings, reductions or limitations in transfer capability over a
given transmission line or multiple line path, or system
operating emergencies.
4.4 Dailv_Peak Period: The clock half hour interval in
which Edison records its daily peak during the On -Peak Period.
D Edison's 'daily peak* shall be determined by measuring Edison's
total system demand during a single scan period of Edison's
Energy Management System (presently four seconds).
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4.5 DiCsel Ge a ation: Those diesel -fueled generating
units located within Vernon at the time of the execution of this
Agreement.
4.6 Enerav Deviation Account: An account, maintained by
1
Edison and Vernon, into which Vernon may deposit Excess Energy
and certain Test Energy, and from which Vernon may withdraw such
energy, in accordance with Section 5.4.
4.7 Exces„g Enerav: The sum of all energy scheduled into
or within the Edison control area in any Hour to meet Vernon's
i
Requirements, from all sources (including energy scheduled by
Edison from Vernon's Integrated Sources in excess of such energy
purchased by Edison from Vernon, if any) except Test -Energy, less
Vernon's Requirements in that Hour, if the total is greater than
zero.
4.8 Excess Non-Intearated Enerav: Energy associated
with one or more of Vernon's Non -Integrated Sources accepted by
Edison pursuant to Special Condition 12 of the Partial
Requirements Rate that exceeds the capacity amount noticed by
Vernon for such source.
' 4.9 FERC: The Federal Energy Regulatory Commission, or
its successor.
4.10 dour: A clock one-hour interval.
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4.11 Hotugly System Incremental Cost: The average
variable cost, as determined by Edison at month end, based on the
hourly variable cost recorded at the end of each Hour expressed
in mills per kilowatthour, of the marginal resources that Edison
used for determining the dispatch of resources needed to meet
electric demand during such Hour. During Hours when oil- and
gas-fired generating units are the marginal resources, such cost
shall be the cost calculated and recorded by Edison's dispatch
computer for use in the dispatching of the oil- and gas-fired
generating units on automatic generation control, plus the
1 variable maintenance -related cost incurred as a function of the
energy output of the oil- and gas-fired generating units as
adjusted at month's end. During Hours when oil- and gas-fired
1
generating units are not the marginal resources, such cost shall
be the cost of the alternative resource on the margin, such as a
purchase, a baseload coal-fired generating unit, or a peaking
1 generating unit, plus the variable maintenance -related cost, if
appropriate, incurred as a function of the energy output of the
marginal resource. The variable maintenance -related cost shall
/ be deemed to be two-tenths (0.2) of a mill
per kilowatthour.
4.12 Integrated Sources: Those sources of electrical
1 capacity and/or energy defined in the Partial Requirements Rate
as being integrated sources.
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4.13 JjU: An integrated operations agreement between
Edison and Vernon as defined in the Partial Requirements Rate,
1
including the PV IOA.
4.14 Mid -Peak Period: All Hours defined in the Partial
Requirements Rate as being within the mid -peak Time Period.
4.15 Non -Integrated So rces: Those sources of electrical
r capacity and associated energy defined in the Partial
Requirements Rate as being non-integrated sources.
4.16
Off -Peak Period: All Hours defined in the Partial
Requirements Rate as being within the off-peak Time Period.
4.17 On -Peak Period: All Hours defined in the Partial
Requirements Rate as being within the on -peak Time Period.
4.18 Partial RQauirements Rate: That rate schedule,
currently on file with FERC as Edison's Rate Schedule R-7.4, as
it may be revised or superseded.
4.19 PV IQA: That integrated operations agreement
between Edison and Vernon executed on August 25, 1982, as it may
be revised or amended.
4.20 Reciulatory Anoroval: A final order of FERC pursuant
to FERC's regulations at 18 C.F.R_ a 385.602 (1992) approving
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this Agreement without change or condition unacceptable to any
Party. Such order shall be deemed final when there are no
1
further administrative or legal appeals to such order available
to any Party or other participant.
4.21 Replacement Energy: Energy obtained by Vernon to
satisfy an obligation to replace energy associated with a
capacity resource pursuant to an IOA_
1
4_22 RecruirPmeritt: For purposes of this Agreement,
Vernon's electrical requirements including: (i) its customer
1
obligations, and (ii) its firm contractual obligations to provide
firm energy in connection with arrangements for Vernon's
Integrated Sources in accordance with an IOA. The Parties intend
1
that in any administrative or judicial proceeding between Edison
and Vernon on the Stacking Issue, neither party shall use as
evidence or assert that this Section 4.22, or the use of the term
1 Requirements in this Agreement, is relevant to the resolution of
the Stacking Issue.
4.23 Stacking Issue: An issue between Edison and Vernon
concerning the order in which Vernon's Integrated Sources and
Non -Integrated Sources are to be credited in calculating Vernon's
R payments to Edison under the Partial Requirements Rate or
Edison's payments to Vernon under an IOA. For purposes of this
Agreement, the issue is as defined in both (and not simply
either) Section 4.23.1 and Section 4:23.2.
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4.23.1 Vernon believes that the issue concerns: (a)
Vernon's ownership of capacity resources in excess of its need
for capacity, and (b) energy dispatched by Edison from a Vernon
Integrated Source during time frames when Vernon prefers to
obtain energy from other Vernon sources in preference to energy
in the amount so dispatched by Edison from such Integrated
Source. Vernon believes that the energy component of the issue
involves such considerations as: (1) the sequence in which energy
from Vernon's Integrated Sources and Non -Integrated Sources are
to be credited in calculating Vernon's payments to Edison under
! the Partial -Requirements Rate, (2) the nature and extent of
Edison's IOA rights and obligations regarding its dispatch of
Vernon's Integrated Sources and the consequences as between
! Edison and Vernon of such Edison dispatching, and (3) the nature
and extent of Edison's obligation under an applicable IOA to
purchase energy that Edison dispatches from a Vernon Integrated
! Source. Vernon believes the capacity issue involves such
L
considerations as the nature and extent of Edison's obligation
under an applicable IOA to purchase any of such capacity.
4.23.2 Edison believes that the issue concerns the
interrelationship between the rights and obligations of both
! Edison and Vernon under an applicable IOA, and Vernon's import
into the Edison control area of capacity and energy from Non -
Integrated Sources under Special Condition 12 of the Partial
0 Requirements Rate. Edison believes that if Vernon is permitted
I
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to take credit first for its Non -Integrated Sources (i.e., to
'stack' the Non -Integrated Sources first), thereby possibly
making some or all of its Integrated Sources excess to Vernon's
needs, Vernon is improperly and unilaterally modifying and/or
triggering Edison's obligations with respect to Vernon's
Integrated Sources.
4.24 Test Energy-: Energy that is delivered into or
within the Edison control area for Vernon which is associated
with a capacity resource that is solely or partly owned by Vernon
or a capacity resource from which Vernon has a contractual
obligation to purchase capacity and associated energy, and such
resource has been accepted by Edison for operation as a Non -
Integrated Source, during operational testing prior to such
resource being operable as a Non -Integrated Source.
4.25 Test Ene ay Deviation Account: An account,
•
maintained by Edison and Vernon, into which Vernon may deposit
certain Test Energy, and from which Vernon may withdraw such Test
• Energy, in accordance with Section 5.5.
•
4.26 Third Party: An electric utility or qualifying
facility, not a Party to this Agreement.
•
4.27 Time Period: Any daily on -Peak, Mid -Peak, or off -
Peak Period.
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4.28 Workday: Monday through Friday of every week except
for the following holidays: New Year's Day (January 1),
1
Washington's Birthday (third Monday in February), Memorial Day
(last Monday in May), Independence Day (July 4), Labor Day (first
1 Monday in September), Veterans Day (November 11), Thanksgiving
1
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Day (fourth Thursday in November), and Christmas Day
(December 25). In the event that any of the holidays listed
above fall on a Saturday, the preceding Friday shall not be a
Workday. If any of the holidays listed above fall on a Sunday,
the following Monday shall not be a Workday.
5.1 Notwithstanding the existence of any Control Area
Import Limitations, Vernon shall be permitted to import non-firm
energy into the Edison control area, except as otherwise provided
in Section 5.2, and subject to the availability of transmission
service. The availability of transmission service for such
importation shall be determined in accordance with the terms and
conditions of separate transmission service arrangements,
provided that in no event shall Edison deny or curtail
1 transmission service under such transmission service arrangements
as a result of Control Area Import Limitations.
1 5.2 During each Hour of all Off -Peak Periods in which
Vernon is importing non-firm energy into the Edison control area
other than as Replacement Energy, Vernon shall purchase from
1 Edison under the Partial Requirements Rate, during the Off -Peak
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megawatthours in.any Time Period, Edison shall purchase such
Excess Energy from Vernon at 85 percent of Edison's Hourly System
Incremental Cost for the Hour or Hours in which such energy was
generated.
5.4.2 Vernon may withdraw energy from the Energy
Deviation Account as set forth below. Except as set forth in
Section 5.4.3, withdrawals shall be used to offset energy that
would otherwise be purchased from Edison under the Partial
Requirements Rate during each Hour of such withdrawal. Vernon
shall not be required to actually purchase energy under the
Partial Requirements Rate in order to withdraw energy from the
Energy Deviation Account.
5.4.2.1 The maximum hourly rate for withdrawals
from the Energy Deviation Account shall be 7 megawatthours in any
Hour during the On -Peak Period and Mid -Peak Period and 30
W megawatthours in any Hour during the Off -Peak Period.
5.4.2.2 Energy recorded in the Energy Deviation
Account that was generated during the Off -Peak Period may be
withdrawn during the Off -Peak Period only.
5.4.2.3 Energy recorded in the Energy Deviation
Account that was generated during the Mid -Peak Period may be
withdrawn during the Off -Peak Period and/or Mid -Peak Period only.
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5.4..2.4 Energy recorded in the Energy Deviation
Account that was generated during the On -Peak Period may be
withdrawn during any Time Period.
-5.4.2.5 Seven (7) Workdays after the end of each
month, Vernon shall provide to Edison a schedule showing, for
each Hour of the preceding month the amounts of energy deposited
in, and withdrawn from, the Energy Deviation Account. The amount
of Excess Energy shown on such schedules as being deposited in
the Energy Deviation Account for each Hour may not exceed the
amount of Excess Energy generated in that Hour that is eligible
for inclusion in the Energy Deviation Account in accordance with
this Agreement, as reflected in Edison's operating records. The
amount of Excess Energy shown on such schedules as being
0 withdrawn from the Energy Deviation Account for each Hour shall
be in accordance with the terms of this Agreement -
0 5.4.2.6 Energy withdrawn from the Energy Deviation
1
Account may not be used to fulfill the purchase obligation set
forth in Section 5.2.
5.4.3 Except as provided in this Section 5.4.3,
withdrawals from the Energy Deviation Account shall not reduce
1 Vernon's Partial Requirements Rate billing demand. However, if,
in order to acconv odate the withdrawal of energy from the Energy
Deviation Account in a Time Period, Vernon is required to reduce
its schedules of energy associated with Non -Integrated Sources
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and if such reduction in schedules would result in a
corresponding increase in Vernon's Partial Requirements Rate
billing demand in such Time Period, then Vernon may offset such
increase in billing demand in accordance with the following:
5.4.3.1 Vernon shall maintain available unloaded
capacity in an amount equivalent to the amount of energy Vernon
intends to withdraw in an Hour from the Energy Deviation Account.
1
Edison shall have the right to require Vernon to deliver energy
associated with such capacity with the following notice, if
Edison, in its sole judgment, determines that the continuity of
service within its control area is in jeopardy: (i) until
January 1, 1995, on one Hour's notice; (ii) thereafter on
15 minutes' notice if the source of such unloaded capacity is
D Vernon's Diesel Generation, or 10 minutes' notice for all other
Vernon Non -Integrated Sources.
5.4.3.2 Vernon shall inform Edison in advance of
each Hour in which Vernon intends to use withdrawals from the
Energy Deviation Account to avoid incurring a demand charge under
1 the Partial Requirements Rate of the amount of energy it intends
to withdraw from the Energy Deviation Account and the source of
unloaded capacity that may be called upon by Edison to deliver
1 energy.
5.4.3.3 If, on any day, Vernon does not deliver.
1 energy associated with its unloaded capacity when called upon by
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Edison, then Vernon shall incur an obligation to purchase
capacity from Edison for that day and will pay Edison a daily
capacity charge equal to one -thirtieth (1/30) of the then
applicable Partial Requirements Rate monthly demand charge.
5.4.3.4 If Edison requires Vernon to deliver
energy in accordance with Section 5.4.3.1 and such energy is
excess to Vernon's Requirements, such energy shall be accounted
for in the Energy Deviation Account as set forth in this Section
5.4.
5.4.4 Test Energy may be included in the Energy
Deviation Account, in accordance with this Section 5.4, to the
extent that it was generated during the Off -Peak Period and is
not used to offset energy that would otherwise be purchased from
Edison in accordance with Section 5.2.
0 5.4.5 Vernon shall use reasonable efforts to minimize
the amount of energy in the Energy Deviation Account. It is the
intent of Edison and Vernon that the Energy Deviation Account be
1 a mechanism that will allow Vernon to schedule its Integrated
Sources and Non -Integrated Sources in a manner closely following
Vernon's Requirements. As such, it is intended that Vernon will
1 use reasonable efforts to clear the Energy Deviation Account in
every Hour.
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5.5 During any On -Peak Period Hour or Mid -Peak Period
Hour in which Vernon is generating Test Energy, if the sum of all
energy scheduled into or within the Edison control area to meet
Vernon's Requirements, from all sources (including energy
scheduled by Edison from Vernon's Integrated Sources in excess of
such energy purchased by Edison from Vernon, if any) exceeds
Vernon's Requirements during that Hour, such excess shall be
deemed to be Test Energy and shall be recorded in the Test Energy
•
Deviation Account up to the lesser of: (1) such excess over
•
Vernons Requirements, or (2) the amount of Test Energy generated
in that Hour.
5.5.1 Vernon may withdraw energy from the Test Energy
Deviation Account during the Off -Peak Period only. The maximum
hourly rate for such withdrawals shall be equal to the amount of
capacity properly noticed by Vernon for the proposed Non -
Integrated Source undergoing test operations. Withdrawals from
0 the Test Energy Deviation Account shall be used to offset energy
that would otherwise be purchased from Edison under the Partial
Requirements Rate during each Hour of such withdrawal, but shall
not reduce Vernon's billing demand, if any. Vernon shall not be
required to actually purchase energy under the Partial
Requirements Rate in order to withdraw energy from the Test
0 Energy Deviation Account.
5.5.2 Vernon shall seek to withdraw all energy from
• the Test Energy Deviation Account within seven (7) days. Any
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energy remaining in the Test Energy Deviation Account seven (7)
days following the generation of such energy shall be purchased
by Edison at 85 percent of Edison's Hourly System Incremental
Cost for the Hour or Hours in which such energy was generated.
. - Energy withdrawn from the Test Energy Deviation Account shall be
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withdrawn on a first -in, first -out basis.
5.5.3 Seven (7) Workdays after the end of each month,
Vernon shall provide to Edison a schedule showing, for each Hour
of the preceding month, the amounts of energy deposited in, and
withdrawn from, the Test Energy Deviation Account. The amount of
Test Energy shown on such schedules as being deposited in the
Test Energy Deviation Account for each Hour may not exceed the
amount of Test Energy generated in that Hour that is eligible for
inclusion in the Test Energy Deviation Account in accordance with
this Agreement, as reflected in Edison's operating records. The
amount of Test Energy shown on such schedules as being withdrawn
go
from the Test Energy Deviation Account for each Hour shall be in
accordance with the terms of this Agreement.
10 5.5.4 Energy withdrawn from the Test Energy Deviation
Account shall not be used to fulfill the purchase obligations set
forth in Section 5.2.
a
5.5.5 Vernon shall, whenever economically and
operationally feasible, schedule testing of its Non -Integrated
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6
Sources so as to minimize deliveries of energy into the Edison
control area for Vernon in excess of its Requirements.
5.6 The Authorized Representatives of the Parties,
designated in accordance with the PV IOA, shall agree to
procedures to account for energy delivered into or withdrawn from
the Energy Deviation Account and Test Energy Deviation Account
including any payment by a Party to the other Party resulting
from the operation of such Deviation Accounts. Such procedures
shall be in accordance with the terms and conditions of this
Agreement and shall not amend or supersede any term or condition
of this Agreement_ In the event the Parties cannot agree to such
accounting procedures, Edison shall implement the Energy
Deviation Account and Test Energy Deviation Account and file any
procedures necessary to implement such Deviation Accounts with
the FERC. Vernon shall have the right to oppose any such
accounting procedures filed by Edison, and to propose alternative
procedures to the FERC.
5.7 Nothing contained in this Agreement shall be
construed as precluding or limiting Vernons right to sell energy
from its Non -Integrated Sources or proposed Non -Integrated
Sources, other than energy withdrawn from the Energy Deviation
Account or Test Energy Deviation Account, to Edison or to Third
Parties.
P
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5.8 The. Energy Deviation Account and the Test Energy
Deviation Account provided for in this Agreement are not intended
to resolve the Stacking Issue. Said accounts shall only be used
to accommodate the inadvertent scheduling of energy and Test
Energy and shall not affect the ultimate determination of the
Stacking Issue. Nothing in this Agreement shall be construed to
relieve Edison of any obligations it may have to purchase
capacity or energy from Vernon pursuant to an applicable IOA, or
0
to increase any such obligation. If Edison seeks to modify or
eliminate the current Special Condition 12 of the Partial
Requirements Rate in a way that affects the operation or
is usefulness to Vernon of the Energy Deviation Account or the Test
Energy Deviation Account, either by way of the unilateral filing
contemplated in Section 5.15 or by way of a filing under Section
0 205 of the Federal Power Act after the moratorium on the
effectiveness of such filing set forth in Section 5.15.4 has
expired, Vernon may seek any relief it believes is just and
0 reasonable with regard to Excess Non-integrated Energy and Test
Energy, and Edison may assert any defenses it may have in
opposition to Vernon's request for relief. If the Energy
0 Deviation Account and the Test Energy Deviation Account are still
in effect ten (10) years from the date of Regulatory Approval of
this Agreement, either Edison or Vernon may seek to change or
i eliminate such accounts, if such change or elimination would be
just and reasonable, by making a filing with the FERC under
Section 205 or Section 206 of the Federal Power Act. Edison and
0 Vernon each reserve any rights they may have to oppose such
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10
for the development of arrangements for the integrated operation
of Vernon's resources with Edison's electric system.
5.15.1 The negotiations to be conducted pursuant to
this Section 5.15 shall include, but are not limited to, the
0 following: (1) modifications to the existing generic IOA for
baseload resources; (2) an arrangement for intermediate
resources; (3) an arrangement for peaking resources; (4) an
0 arrangement for capacity purchases by Vernon on a system
reliability basis; (5) an arrangement for the operation by Vernon
of resources sited within Vernon; (6) network transmission
b policies; and (7) the terms and conditions of Special Condition
12 of the Partial Requirements Rate.
D 5.15.2 At any time between July 1, 1995, and December 1,
1996, inclusive, Vernon, at its sole discretion, may submit to
Edison, on a one-time basis, a written demand that Edison must
b develop and deliver to Vernon a draft of an Edison -Vernon IOA or
other type of operating arrangement (`Operating Arrangement•)
that Edison, at Vernon's request, shall tender to the FERC for
D filing. Edison's delivery to Vernon of such draft shall be made
within 180 days after Vernon's submission to Edison of such
demand. Edison shall accompany the draft with copies of the
S written direct testimony that Edison would file with the FERC to
support such Operating Arrangement. The unilateral filing shall
be prepared by Edison, in its sole discretion, and need not
encompass all matters set for negotiation in Section 5.15.1,
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provided, however, that the Operating Arrangement shall be
suitable for Vernons capacity and energy resources including
a
baseload, intermediate and peaking resources both firm and non-
firm. The terms and conditions of such Operating Arrangement
shall be just and reasonable and not unduly discriminatory. The
Operating Arrangement may include modification to, or elimination
of, Special Condition 12 of the Partial Requirements Rate,
provided that Edison may not propose an effective date for such
modification or elimination earlier than January 1, 2002. After
delivery of such draft Operating Arrangement to Vernon, Edison
shall, in a reasonably timely fashion, respond to reasonable
Vernon requests for information, such as on the intended meaning
or proposed implementation of draft Operating Arrangement
provisions. After its receipt of such draft Operating
•
Arrangement, Vernon shall, within the period from May 1, 1996 to
June 1, 1997, have the option to request in writing that Edison
make the tender to the FERC, as aforesaid, or that Edison
0 unilaterally tender to the FERC an IOA for Vernon identical to
the 1990 IOAs between Edison and each of the Cities of Anaheim,
Azusa, Banning, Colton, and Riverside ('1990 IOA'). Edison shall
0 comply with Vernon's request by either (depending on such option
exercised by Vernon): (i) within 30 days after receipt of such
request tendering such Operating Arrangement and such supporting
evidence and other documents to the FERC for filing pursuant to
Section 205 of the Federal Power Act ('FPA•), or (ii) within 90
days after receipt of such request tendering a 1990 IOA for
Vernon and supporting evidence and other documents to FERC for
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•
•
•
filing pursuant to Section 205 of the FPA. For all matters
contained in any such filing other than provisions for the
modification or elimination of Special Condition 12 of the
Partial Requirement Rate, Vernon shall have the choice of: (i) an
effective date starting at she end of the 60 -day notice period
specified in FPA Section 205, whether tat Vernon's election) with
a full or nominal suspension, or (ii) an effective date upon a
final FERC order in the proceeding initiated by such filing.
Vernon shall have the right in such proceeding to oppose the
proposed operating Arrangement or 1990 IOA, or any parts thereof,
and to recommend to the FERC any changes thereto.
5.15.3 If Edison fails timely to comply with its
obligations stated in Section 5.15.2, such as by not providing
0 Vernon with a draftOperating Arrangement or
by not making the
required Section 205 tender for filing, Vernon will be authorized
to seek enforcement of the obligations with FERC including any
0 appropriate sanctions or other remedies.
5.15.4 Except as provided in Section 5.15.2, nothing in
0 this Agreement shall be considered to constitute a waiver or
relinquishment by Vernon or Edison of the filing and effective
date moratorium provided in Section 10 of the 1990 Settlement
Agreement as amended
by Section 3.15 of the April 1992 Edison -
Vernon Settlement Agreement; provided, however, that Edison may
not propose an effective date for elimination of or modification
0
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f,
5.18 Edison shall pay $4,392,599 to Vernon in settlement
of all other issues arising between them that are the subject of
this Agreement including, but not limited to, the issue regarding
retroactive application of the FERC's Order in FERC Docket No.
ER81-177 (Phase II) in Vernon's protest to Edison's compliance
filing, past Test Energy, Excess Energy, and Excess Non -
Integrated Energy issues and Edison's obligations to Vernon under
Section 8.3(a) of the 1990 Settlement Agreement in Docket No.
ER88-83 with respect to QFs affiliated with Edison. This
settlement amount shall accrue interest from July 1, 1993, until
the date of payment. Such payment shall be made within 45 days
0 following Regulatory Approval of this Agreement.
5.19 In any administrative or judicial proceeding between
P Edison and Vernon of the Stacking Issue, neither Party shall use
as evidence or assert that any amendment to the PV IOA or other
IOA resulting from Edison's compliance filing in FERC Docket
M No. ER81-177 (Phase II) is relevant to the resolution of the
Stacking Issue. Both Edison and Vernon retain the right to
support their respective positions on the Stacking Issue based
on, among other things, the language of the PV IOA as it existed
prior to said compliance filing or the language in the Partial
Requirements Rate. For the period of the negotiations described
P in Section 5.15, Vernon shall not be re energy in
required to take
excess of its capacity credit for Palo Verde as that credit is
determined pursuant to the PV IOA. If, and to the extent that,
0 Vernon elects not to take energy in excess of its capacity credit
- 31 -
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for Palo Verde -as provided in this Section 5.19, Edison shall
purchase such energy from Vernon at 115 percent of the
0
incremental cost of such energy. Vernon shall notify Edison
a
within seven (7) days after the end of a month of Vernon's
election in each Hour of the previous month to accept energy in
excess of its capacity credit for Palo Verde or require Edison to
purchase such energy. The Parties' agreement herein regarding
the purchase of energy in excess of Vernon's capacity credit for
a
Palo Verde shall be without prejudice to either Edison or Vernon
C
in the resolution of the Stacking Issue_ The Parties agree that
Edison's obligation to purchase energy under this Section 5.19 is
applicable to Vernon's Palo Verde resource only. The Parties
further agree that this Section 5.19 is non -precedential in
nature, and that the Parties' agreement hereto for purposes of
r
this Agreement shall not be offered in evidence or otherwise
asserted as a basis for resolution of the Stacking Issue or of
Edison's or Vernon's respective rights and obligations under the
W PV IOA or any other IOA. The Parties further agree that Edison's
obligation to purchase energy under this Section 5.19 is intended
to address only that energy scheduled by Edison from Vernon's
s Palo Verde entitlement that is excess to Vernon's capacity credit
for Palo Verde. The Parties further agree that their agreement
to this Section 5.19 for purposes of this Agreement shall not be
offered in evidence or otherwise asserted as a basis for
resolution of issues concerning energy from Integrated Sources in
excess of Vernon's Re-Nire-ments. In any subsequent litigation
0 between Edison and Vernon concerning the Stacking Issue, Edison
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•
•
•
•
agrees not to assert as a defense any argument that Vernon's
complaint concerning Edison's billing practices as they may
pertain to the Stacking Issue is untimely, or that Vernon has, by
acquiescence, agreed with such billing practices, because Vernon
agreed not to bring such a complaint prior to the conclusion of
the negotiations described in Section 5.15.
5.20 Unless otherwise specified, Edison and Vernon agree
that all interest payments provided for in Section 5 shall be
computed in accordance with the FERC's regulations at 18 C_F.R.
§ 35.19a (1992).
5.21 Vernon has br hereby withdraws without prejudice the
following issues in Docket No. ER88-83 identified in the 1990
• Settlement Agreement: Section 7.5(e) annual scheduled
maintenance (Clay Direct Testimony at 58-61); Section 7.5(f) to
the extent it asserts an obligation on the part of Edison to make
unilateral rate schedule filings (Clay Direct Testimony at 65-71,
Clay Supplemental Testimony at 76-80); and Section 7.5(g)
purchases of capacity and associated energy under special
0 Condition 12 for transportation over the Third AC Line (Clay
Direct Testimony at 74-76, Clay Supplemental Testimony at 81).
This Agreement shall not be asserted as precluding Vernon from
litigating these issues, in an appropriate forum, in the future.
References in this Section 5.21 to the prefiled Clay testimony
are intended to identify issues generally and are not intended to
•
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limit the evidence that either Edison or Vernon may offer on such
issues.
5.22 There is a dispute between Edison and Vernon as to
whether Vernon may replace an existing Non -Integrated Source with
a source of generating capacity and associated energy under
circumstances where Edison has not been notified in advance of
the specific generating resource to be used for such replacement
in accordance with the notice provisions of Special Condition 12
of the Partial Requirements Rate. Notwithstanding this dispute,
during the period commencing with the Regulatory Approval of this
Agreement, and continuing until the earlier of: (i) June 30, 1997
or (ii) Edison's tendering to FERC of a unilateral filing in
accordance with Section 5.15.2, Vernon may replace a Non-
integrated Source, during the period such Non -Integrated Source
has been noticed by Vernon and accepted by Edison for operation
as a Non -Integrated Source, with another source of generating
1
capacity and associated energy without complying with the notice
provisions of Special Condition 12 of the Partial Requirements
Rate, provided that such replacement source otherwise meets the
requirements of Special Condition 12 of the Partial Requirements
Rate. Such replacement source shall not exceed the amount of
capacity and associated energy noticed for the Non -Integrated
0 Source or Sources which it is replacing. The agreement set forth
in this Section 5.22 shall be without prejudice either to
Edison's rights, subsequent to the period of the agreement set
forth in this Section 5.22, to administer the notice requirements
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of Special Condition 12 of the Partial Requirements Rate as
Edison determines to be appropriate, or to Vernon's rights to
protest Edison's administration of Special Condition 12 of the
Partial Requirements Rate. The Parties, agreement set forth in
this Section 5.22 shall not be treated as precedent, and shall
0
not be offered in evidence or otherwise asserted as a basis for
a
71
resolution of any issue regarding the requirements of Special
Condition 12 of the Partial Requirements Rate, or of Edison's
administration thereof.
5.23 The Parties agree to the duration of the
effectiveness of certain settlement provisions as follows:
5.23.1 The Parties intend that the provisions of
Sections 5.1, 5.2, 5.9, and 6.1 shall be binding on the Parties
for a Time Period coextensive with the applicability of the
PV IOA or any other IOA between the Parties. If the terms of the
0 PV IOA and such other IOA cease to be applicable to Edison and
0
Vernon, Vernon may reassert the issues settled by those sections,
and Edison may assert any defenses it may have thereto.
5.23.2 The Parties intend that the provisions of
Sections 5.3, 5.4, 5.5, and 5.7 shall be binding on the Parties
for a
period coextensive with the applicability of the current
Special Condition 12 of the Partial Requirements Rate. If the
current Special Condition 12 of the Partial Requirements Rate
0 ceases to be effective or is superseded, Vernon may reassert the
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•
•
issues settled by those Sections, and Edison may assert any
defenses it may have thereto.
5.23.3 All other provisions are binding on the Parties
in accordance with the terms set forth therein, or, if not
specified, in perpetuity.
6.1 This Agreement resolves, compromises, and settles
those issues raised by Vernon in FERC Docket No. ER88-83
identified in the 1990 Settlement Agreement in Sections 7.5(a),
(b), (c),. and (d). This Agreement also resolves, compromises and
settles the issue identified in the 1990 Settlement Agreement in
Section 7.5(f) (except to the extent Vernon has withdrawn the
unilateral filing issue as set forth in Section 5.21). The
resolution of issues identified in Sections 7.5(a) and (f) of the
1990 Settlement Agreement specifically includes interrupting non -
0 firm energy purchases for minimum load conditions and/or other
system conditions.
0 6.2 Vernon hereby withdraws its protest to Edison's
compliance with FERC's order in Docket No. FA85-67. Vernon
waives any claim to a refund based on an adjustment to Edison's
+ wholesale rates which might result from
protests to Edison's
compliance with the FERC's order in Docket No. FA85-67 raised by
any other wholesale customer or the FERC Staff. Should any
0 wholesale customer seek rehearing or judicial review of the
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FERC's order approving Edison's compliance, Vernon shall not
voluntarily assist or otherwise participate in any such
regulatory or judicial proceedings relative to the compliance in
order to obtain from Edison a change in rates, terms, or
conditions of service or any other relief or to assist others in
obtaining such change or relief.
6.3 Vernon waives any claim to a refund based on an
adjustment to Edison's wholesale rates in Docket Nos. ER81-177,
ER82-427, ER84-75, and ER86-271 which may result from protests
raised by any other wholesale customer or the FERC Staff in
• Docket No. FA85-67 or from any adjustments made independently by
the FERC in its review of Edison's compliance with the FERC's
findings in Docket No. FA85 -67 and as those findings may be
0 reflected in the determination of the
just and reasonable rates
in Docket Nos. ER81-177, ER82-427, ER84-75, and ER86-271. Should
any wholesale customer seek rehearing or judicial review of the
0 orders of the FERC approving Edison's compliance with the FERC's
orders in Docket No. FA85-67 or as such compliance may be
reflected in the determination of the just and reasonable rates
40 in Docket Nos. ER81-177, ER82-427, ER84-75, or ER86-271, Vernon
shall not voluntarily assist or otherwise participate in any such
regulatory or judicial proceedings in order to obtain from Edison
0 a change in rates, terms, or conditions of service or any other
relief or to assist others in obtaining such change or relief.
•
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6.4 Edison hereby amends its compliance filing as set
forth in Section 5.10, and Vernon hereby withdraws its protest
and supports Edison's amended compliance filing, in FERC Docket
No. ER81-177 (Phase II). Should any wholesale customer seek
rehearing or judicial review of the FERC's order approving
Edison's compliance filing in Docket No. ER81-177 (Phase II),
Vernon shall not voluntarily assist or otherwise participate in
any such regulatory or judicial proceeding in order to obtain
from Edison a change in rates, terms, or conditions of service or
any other relief or to assist others in obtaining such change or
relief.
6.5 In fulfillment of the obligations set forth in
Section 8.3(a) of the 1990 Settlement Agreement in Docket
No. ER88-83, Edison and Vernon agree as follows:
6.5.1 Edison and Vernon agree that the methodology
1
reflected in Edison's settlement agreement with the Division of
Ratepayer Advocates (ODRA`) of the California Public Utilities
Commission ('CPUC') in Application No. 87-02-019 before the CPUC
i
cannot easily be converted into a methodology applicable to the
recovery of revenues previously derived by Edison from the Fuel
Cost Adjustment ('FCA').
6.5.2 The lump sum settlement amount included in
Section 5.18 settles Edison's obligations set forth in Section
1 8.3(a) of the 1990 Settlement Agreement in Docket No. ER88-83.
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The settlement amount reflects: (a) an adjustment to the energy
costs paid to the affiliated QFs for the period December 1, 1984,
through June 4, 1988, and (b) the present value as of January 1,
1992, of: (i) a 5.74 percent reduction in capacity payments under
the 13 contracts identified in Appendix H, and (ii) the reduction
from treating the contract with KRCC as an Interim Standard Offer
No. 4 using the •as -available capacity' option. This reduction
in capacity payments extends from January 1, 1998, through the
current term of the 13 contracts.
6.5.3 Vernon agrees that the lump sum amount paid
pursuant to Section 5-18 fulfills Edison's obligations under
Section 8.3(a) of the 3.9 90 Settlement Agreement in Docket
No. ER88-83 with regard to Edison's purchases from affiliated
QFs.
6.5.4 Vernon waives the right to make any claim
against Edison for any other adjustment pursuant to Section
8.3(a) of the 1990 Settlement Agreement in Docket No. ER88-83
with regard to Edisones purchases from QFs affiliated with Edison
P during the period extending from December 1, 1984, through
November 30, 1986.
9 6.5.5 Edison understands that the waiver set forth in
Section 6.5.4 above does not extend to purchases which Edison
made from non-affiliated QFs during the period extending from
b December 1, 1984, through November 30, 1986.
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. 6.5.6 By accepting the present value of the
reductions to the capacity payments under the 13 contracts in
Appendix H , Vernon waives the right to challenge the
. reasonableness for ratemaking purposes of now existing terms and
conditions included in the 13 contracts from such time as Edison
reflects the cost of capacity from those resources in future
rates for service to Vernon through the current term of the 13
contracts. However, Vernon retains its right to contest Edison's
administration of those contracts and the ratemaking treatment of
such costs, including, without limitation, jurisdictional cost
0
allocation, rate design, and allocations of such costs between
capacity and energy.
• -
6.6 in the event that any other wholesale customer
C
•
hereafter seeks from the FERC, pursuant to a complaint or in
response to a change in rates proposed by Edison, a refund based
on Edison's purchases from QFs affiliated with Edison during the
period extending from December 1, 1986, through June 4, 1988, or
in the event that the FERC independently disallows any portion of
the costs associated with such purchases during that period and
orders refunds of any disallowed portion of the costs, Vernon
retains the right to a refund resulting from such proceedings.
•
Vernon agrees to abstain from initiating such proceeding; from
voluntarily assisting any other wholesale customer, intervenor,
protester, or the staff of the FERC; from otherwise participating
• in an regulatory or subsequent equent judicial proceedings in order to
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obtain from Edison such a change in rates, terms, or conditions
of service or any other relief; or from assisting others in
obtaining such change or relief. This prohibition against
further participation or assistance by Vernon in such litigation
or appeals shall not preclude Vernon from meeting positions
introduced in such cases or proceedings by Edison or any other
third party where necessary to protect the interests of Vernon.
6.7 Vernon and ESI agree to terminate, with prejudice,
the ESI Arbitration proceeding in AAA Case No. 72-199-0468-89.
Within 30 calendar days after Regulatory Approval of this
1 Agreement, Vernon and ESI shall -jointly file with the arbitrator
and the AAA a notification, in the form set forth in Appendix F,
that they are withdrawing all claims and counter -claims in said
0 proceeding. Vernon waives all claims to possess, copy, or review
any of the documents identified in the appendix to Douglas P.
Ditonto's October 5, 1992 letter to J. David Fitzsimmons, Esq.
P (attached hereto as Appendix E). -
6.8 This Agreement resolves, compromises, and settles
all issues remanded by the United States Court of
Appeals for the
Ninth Circuit in City of Vernon v, Southern California Edison
Company, 955 F.2d 1361 (9th Cir. 1992). Vernon shall, promptly
upon the Regulatory Approval of this Agreement, seek and obtain a
dismissal with prejudice of the District Court case and all
remaining issues in the District Court case, including any and
0 all issues remanded by the Court of Appeals. Neither Edison nor
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a
Vernon shall seek or obtain any additional costs of suit in
connection with that dismissal.
7. Reavlatory A22rQval
7.1 The Parties shall use their best efforts to obtain
Regulatory Approval of this Agreement as full settlement of FERC
Docket Nos. ER88-83, ER81-177 (Phase II), and FA85-67_ Within 30
calendar days after all Parties have executed this Agreement,
Edison shall tender this Agreement for filing with FERC as an
offer of settlement. Within five days after the date of said
filing, Vernon shall file a letter of concurrence with FERC
•
supporting the approval of this Agreement in full settlement of
FERC Docket Nos. ER88-83, ER81-177 (Phase II), and FA85-67. Both
Edison's filing and Vernon's letter shall request that FERC find
that the settlement contained in this Agreement appears fair and
reasonable and in the public interest. This Agreement shall not
be contested by any Party at FERC or elsewhere.
7.2 Following an order of FERC approving this Agreement,
Edison and Vernon shall review such order to determine if FERC
! has changed or modified a condition, deleted a condition, or
imposed a new condition in this Agreement. Within 7 days of the
issuance of the FERC order, Edison and Vernon shall indicate to
each other their acceptance or rejection of the order. A failure
to notify will be equivalent to a notification of acceptance.
Failure to resolve such changed, deleted, modified, or new
condition to the satisfaction of Edison and Vernon within 22 days
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of the date of such FERC order and thereafter to obtain
Regulatory Approval of such resolution shall terminate this
Agreement, including the agreements contained in all appendices
hereto. In the event that a third party seeks rehearing of the
FERC order -approving this Agreement, Edison and Vernon shall
review any order acting on the request for rehearing to determine
if FERC has changed or modified a condition, deleted a condition,
or imposed a new condition in this Agreement. within 7 days of
the issuance of the FERC order acting on the request for
rehearing, Edison and Vernon shall indicate to each other their
acceptance or rejection of the order. A failure to notify will
r be equivalent to a notification of acceptance. Failure to
resolve such changed, deleted, modified, or new condition to the
satisfaction of Edison and Vernon within 22 days of the date of
such FERC order acting on the re g and
quest for rehearing
thereafter to obtain Regulatory Approval of such resolution shall
terminate this Agreement, including the agreements contained in
all appendices hereto. If a petition for review of the FERC
order is taken by any third party, resulting in the issuance of a
decision or order of the appropriate circuit of the United States
ID Court of Appeals which either vacates, modifies, reverses, or
remands the FERC order approving this Agreement, Edison and
Vernon shall review such decision or order and indicate to each
other, within 15 days of the courts decision or order, their
acceptance or rejection of the court's action. A failure to
notify will be equivalent to a notification of acceptance. If
either Edison or Vernon rejects such decision or order, this
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Agreement shall terminate, including the agreements contained in
• all appendices hereto.
V-7140711r4r- M_
• 8.1 -No Party shall institute, maintain, or prosecute any
action, or make any claim or contention in any action, under the
Federal Power Act, the Atomic Energy Act, at law, or in equity,
• against any other Party, the Nuclear Regulatory Commission, the
•
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California Public Utilities Commission, or FERC, based in whole
or in part on the filing of this Agreement, or any activities
settled in this Agreement, other than to advise a court or
regulatory agency that such issues have been settled. This
prohibition includes, but is not limited to, the initiation,
maintenance, prosecution, or participation in any suit or action
before a state or federal court or regulatory agency, under any
laws, federal or state, including antitrust laws (for example,
Sherman Antitrust Act, Clayton Act, the Robinson-Patman Act,
Federal Trade Commission Act or State antitrust provisions, price
discrimination, or related laws). These prohibitions include any
claim based on FERC practices or procedures.
8.2 The Parties understand and intend that the
prohibition described in Section 8 extends to claims which a
40 Party does not know or suspect to exist in its favor at the time
of executing this Agreement, which, if known by the Party, would
have materially affected its settlement with the other Party. In
•
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this regard, the Parties hereby waive application of California
11 Civil Code Section 1542.
8.3 The Parties have read and understand the following
D provisions of California Civil Code Sectio: 1542:
•A general release does not extend to claims which
the creditor does not know or suspect to exist in
his favor at the time of executing the release,
which if known by him may have materially affected
his settlement with the debtor.'
The Parties understand and acknowledge that the significance and
6 consequence of this waiver of California Civil Code Section 1542 is
that even if they should eventually suffer additional damages
arising out of the facts referred to in this Agreement, they will
a not be able to make any claim for those damages. Furthermore, the
Parties acknowledge that they intend these consequences even as to
claims for damages that may exist as of the date of this Agreement
0 but which they do not know exist, and which, if known, would
materially affect their decision to execute this Agreement,
regardless of whether their lack of knowledge is the result of
a ignorance, oversight, error, negligence, or any other cause.
0 9.1 The Parties intend that none of the principles,
methodologies, quantities, and/or amounts underlying or embodied in
this Agreement shall be deemed by FERC, the California Public
0 Utilities Commission, any court or other administrative agency
(state or federal), any Party hereto, or any third party as
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precedent in any proceeding or litigation except to the extent
specifically stated herein. The Parties have assented to the terms
of this Agreement in order to arrive at a settlement. Each Party
expressly reserves the right to advocate in current and future
proceedings (except where participation in such proceedings is
prohibited by Section 8) principles, positions, and methodologies
which may be different from those underlying this Agreement, and
the Parties expressly declare that this Agreement should not be
construed as a precedent for or against either of them in such
advocacy.
1b 9.2 By their execution .of this Agreement, neither Vernon
nor Edison admits to any allegations raised in any of the
proceedings that are settled by this Agreement.
a
10. Other conditions
10.1 This Agreement is conditioned expressly upon its
obtaining Regulatory Approval.
10.2 ThiS Agreement shall be submitted to FERC pursuant to
Rule 602 of FERC's Rules of Practice and Procedure, 18 C.F.R_
S 385.602 (1992). This Agreement is made upon the explicit
understanding that it constitutes a negotiated settlement and that
all offers of settlement and discussions relating thereto are and
shall be privileged and shall be without prejudice to the position
of any Party. In the event FERC does not by order approve this
Agreement, it shall be deemed withdrawn and shall not constitute
- 46 -
6
C
VI
r
part of the record in any proceeding or be used for any other
purpose.
10.3 No Party to this Agreement shall have a right to
withdraw from this Agreement unless and until FERC enters an order
disapproving or conditioning this Agreement as filed.
10.4 This Agreement, whether or not approved, shall not
r
(except for the purpose of requiring compliance with this
Agreement) be offered as an admission or as evidence of an
admission in any legislative, administrative, regulatory, or
r
judicial proceeding and shall not constitute an adjudication of any
question of law or fact for or against any Party_
r 11. gmvious C cation&
This Agreement contains the entire agreement and understanding
between the Parties as to the subject matter of this Agreement, and
r supersedes all prior agreements, commitments, representations, and
r
discussions between the Parties relative to the subject matter of
this Agreement.
12. Ugasevarability.
The Parties understand and agree that this Agreement is
r subject to each and every condition set forth herein, and that each
term of this Agreement is in consideration and support of every
other term.
r
I�
- 47 -
13. Costs Of Filina
Edison shall pay the filing fees, if any. required for the
filing of this Agreement with FERC.
14. gTomai Ler
The failure of a Party promptly to insist in any one or more
instances upon strict performance of any provision of this
Agreement, or to enforce any of its rights, shall not be construed
as a waiver of any such provision or the relinquishment of any such
rights.
r
15. 09v4rnina Lax lend Regulations
This Agreement shall be interpreted, governed, and construed
under the laws of the State of California, as if executed in and to
be performed wholly within the State of California, and in
accordance with the Federal Power Act, lb U.S.C. §§ 824, %L moi.
i
I /
1 /
- 48 -
1
1
p
p
f
r
�IN�jWITNESS WHEREOF, the Parties execute this Agreement as
of the TS" day of July, 1993.
SOUTHERN CALIFORNIA EDISON COMPANY
APPaOVFD By
BRYANT C. DANNER hn R. Fielder
��� ce President
egulatory Policy and Affairs
p /
If
ENERGY SERVICES, INCORPORATED
Byd /
ICHARD K. BUSHEY
Vice President and n oller
CITY OF VEptNON
EONIS C. MALBOG, Mayo
ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
DAVID B. BREARLEY, City Attorney
- 49 -
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2
3
4
5
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7
8
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14
15
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/a w -m wav II/M
APPENDIX A
AMENDMENT NO. 1 TO THE EDISON-VERNON
MEAD FIRM TRANSMISSION SERVICE AGREEMENT
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
. AND
CITY OF VERNON
a
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P
•
0
0
0
6
0
1
2
TABLE OF CONTENTS
3
SECTI
Tl=
4
i.
PARTIES
5
2.
RECITALS
6
3.
AGREEMENT
7
4.
DEFINITIONS
8
5.
EFFECTIVE DATE AND TERM
9
6.
AMENDMENT
10
SIGNATURE CLAUSE
11
12
13
14
15
16
17
18
19
20
21
22
23
2.1
25
26
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2
2
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2= a&-$" ■tv to/"
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AMENDMENT NO. 1 TO THE EDISON-VERNON
2
3
MEAD FIRM TRANSMISSION SERVICE AGREEMENT
4
5
1. PARTIES: The Parties to this Amendment are the CITY OF
6
VERNON ("Vernon"), a municipal corporation of the State of
7
California and SOUTHERN CALIFORNIA EDISON COMPANY, a California
•
8
Corporation (•Edison•), hereinafter sometimes referred to
9
individually as 'Party' and collectively as 'Parties'.
14
2. RECITALS: This Amendment is made with reference to the
11
following facts, among others:
12
2.1 As a part of the Edison -Vernon 1993 Settlement
13
Agreement, the Parties agreed to amend the Agreement in
14
accordance with this Amendment No. 1, which is Appendix A to the
15
Edison -Vernon 1993 Settlement Agreement.
16
2.2 Section 5 of the Agreement provides, among other
17
things, that the Agreement is subject to modification based on
1$
the orders of the FERC in Docket ER84-75 (Phase II).
�9
2.3 On April 17, 1991 the FERC issued Opinion No_ 361
20
in Docket ER84-75 (Phase II).
21
2.4 opinion No. 361 ordered Edison to modify Section
22
4.13 of the Agreement by deleting the phrase 'in the State of
23
California.' Neither Edison or Vernon requested rehearing of
24
that portion of the Commission's order. Consistent with the
25
ordered modification to Section 4.13, Vernon desires and Edison
26
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• sca as -M ■ [ r III"
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I is willing to make a similar modification to Section 4.12 of the
2 Agreement.
3 2.5 Vernon has requested and Edison is willing as part
4 of,the.Settlement Agreement to amend the Agreement as set forth
5 herein.
6 3. AGREEMENT: The Parties agree as follows:
7 4. DEFINITIONS: Unless otherwise defined herein, terms used
8 with initial capitalization shall have the same meaning as
9 specified in the Agreement. The following terms as used herein
ip shall have the following meanings:
11 4.1- Agreement: The Edison -Vernon Head Firm
i2 Transmission Service Agreement between Southern California
i3 Edison Company and City of Vernon executed July 6, 1987.
t4 4.2 Amendment No- 1: This amendment to the Agreement_
i5 4.3 Partial RegUirements Rate: Edison's Rate Schedule
16 R-7.4, or its successor, for partial requirements service to
' t7 Vernon on file with the FERC.
t8 4.4 Vernon Resource: Any source of electrical capacity
t9 and energy or energy obtained by Vernon in accordance with
► 20 special conditions 11 or 12 of the Partial Requirements Rate.
21 5. EFFECTIVE DATE AND TERM:
22 5.1 This Amendment No. 1 shall becowe effective on the
t 23 date, following execution by the Parties, when FERC approves the
2s Edison -Vernon 1993 Settlement Agreement, of which this Amendment
25 No. 1 is a part, without changes or conditions unacceptable to
26 //
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I 9= so -me • [r I e /M
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b
1
either Party as determined in accordance with Section 7.2 of the
2
Edison -Vernon 1993 Settlement Agreement.
3
5.2 This Amendment No. 1 shall terminate on the date of
4
termination of the Agreement.
5
5.3 Except as specifically provided herein all other
6
terms and conditions of the Agreement shall remain in full force
7
and effect.
a
6. In accordance with this Amendment No. 1 the
9
following terms of the Agreement shall be amended as follows:
'a
6.1 Section 4.9 of the Agreement is hereby deleted and
11
the following is substituted therefor:
12
'4.9 point of Delivery: The point(s) at which
13
Edison provides schedules of capacity and energy
14
and delivers energy in accordance with this
is
Agreement. For purposes of this Agreement the
t6
Points of Delivery shall be Mead Substation and/or
''
the point where the 66 kV facilities of Edison
to
connect with the 66 kV facilities of Vernon at the
t9
City limits of the City of Vernon_,
20
6.2 Section 4.10 of the Agreement is hereby deleted and
21
the following is substituted therefor:
22
04.10 point of Receipt: The point(s) at which
23
Edison accepts schedules of capacity and energy and
24
receives deliveries of energy in accordance with
25
this Agreement. For purposes of this Agreement the
26
Points of Receipt shall be Mead Substation and/or
-3-
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•
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I
the point where the 66 kv facilities of Edison
2
connect with the 66 kV facilities of Vernon at the
3
city limits of the City of Vernon.•
4
6.3 Section 4.12 of the Agreement is hereby deleted and
s
the following is substituted therefor:
6
04.12 Transmission Caility: The transfer
7
ability, expressed in megawatts, of transmission
e
facilities available to Edison to transmit Edison's
9
and all transmission service purchasers, electrical
to
energy from a Point of Receipt to a Point of
11
Delivery, which is determined, in the sole judgment
12
of the operator of such facilities, to be the
13
maximum energy transfer ability of the transmission
14
facilities under -electrical system conditions
15
existing at the time consistent with prudent
16
operating procedures and good utility practices.•
17
6.4 Section 4.13 of the Agreement is hereby deleted and
f8
the following is substituted therefor:
19
04.13 Transmission Ca2acity: The transfer
•
20
ability, expressed in megawatts, of transmission
21
facilities available to Edison to transmit Edison's
22
and all transmission service purchasers' electrical
23
energy from a Point of Receipt to a Point of
2s
Delivery which, from tine to time, is determined,
in the sole judgment of the operator of such
•
26
facilities, to be the maximum electrical energy
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1Mwf w yryM•MW
transfer ability of such facilities which is
2
consistent with prudent operating procedures and
3
good utility practices.`
4
6.5 Section 5.4 of the Agreement is hereby deleted and
5
the following is substituted therefor:
6
05.4 This Agreement and the firm transmission
7
service to be made available and purchased
8
hereunder shall terminate on the earlier of: (i)
9
the effective date of a written agreement to
10
terminate this agreement; or (ii) termination of
j1
Vernons allocation to capacity and energy from
12
Hoover without a successor allocation of capacity
13
and energy to Vernon by Western from Hoover.'
/
14
6.6 Section 6.1 of the Agreement is hereby deleted and
i5
the following is substituted therefor:
i6
"6.1 Subject to the terms of this Agreement,
1'`
Edison shall make available 26 megawatts Qf firm
i8
transmission service to Vernon, for Vernon
19
Resources, as measured at the Point of Receipt, and
20
Vernon shall pay Edison for such firm transmission
21
service, over Edison•s electrical transmission
22
facilities between the Point of Receipt and the
23
Point of Delivery. For the period commencing with
24
the effective date of this Amendment No. 1 through
25
December 31, 1994, such firm transmission service
26
shall be limited to the on -peak hours as defined in
-5-
6 Ma M -7N f[Y 11/M
1Mwf w yryM•MW
I
1
the Partial Requirements Rate. Beginning
2
January 1, 1995 such firm transmission service
3
shall be available in all hours. Vernon may
a
simultaneously schedule a maximum of 26 megawatts
5
of capacity and/or energy at Mead as a Point of
6
Receipt and a maximum of 26 megawatts of capacity
7
and/or energy at the Vernon City limits as a Point
a
of Receipt. Such simultaneous schedules shall each
4
be subject to the transmission losses specified in
10
Section 7.'
11
6.7 Section 6.2 of the Agreement is hereby deleted and
t2
the following is substituted therefor:
t3
'6.2 For purposes of this Agreement,
14
Transmission Capacity between a Point of Receipt
t5
and a Point of Delivery shall be equal to the total
t6
transmission capacity of Edison•s Eldorado to Lugo
17
500 kV line, Eldorado to Lugo 230 kV line Number
1$
one and two and !Mohave to Lugo 500 kV line which
19
shall be deemed initially to be 2,500 megawatts.
i 20
Such deemed amount shall be subject to change
21
pursuant to Section 4.13; provided, that Edison's
22
Authorized Representative shall give Vernon s
23
Authorized Representative timely written notice of
2;
any such change.'
25
6.8 Section 6.6 of the Agreement is hereby deleted.
26
It -is
1 PM l/ -1M Rh it/M
I
1
6.9 Section 6.7 of the Agreement is hereby deleted and
1 2
the following is substituted therefor:
3
06.6 To the extent capacity and energy or energy
4
associated with a Vernon Resource is scheduled for
5
delivery for Vernon's account, Edison shall accept
6
such scheduled deliveries of capacity and/or energy
7
at a Point of Receipt, up to a total of 26
1 9
megawatts, and, subject to the provisions of
9
Section 6.5, shall make available: M a like
1O
amount of capacity and associated energy or energy
11
to Vernon for its account at the Mead Substation
12
Point of Delivery, or ( ii) a lice a,: cunt of
t3
capacity and associated energy or energy, reduced
1 14
by transmission losses, to Vernon for its account
15
at the City of Vernon Point of Delivery."
16
6.10 Section 6.8 of the Agreement is hereby deleted and
1 17
the following is substituted therefor:
1$
56.7 Subject to Sections 6.3. 6.5 and 6.6,
19
hourly schedules of capacity and deliveries of
1 20
energy hereunder shall be as specified by Vernon's
21
dispatchers or schedulers and shall be in
22
accordance with practices and procedures agreed to
23
by Vernons and Edison's Authorized
24
Representatives.•
25
6.11 Section 7 of the agreement is hereby deleted and
F 26
the following is substituted therefor:
-7-
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I
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3
s
5
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t
8
9
10
11
12
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15
1.6
17
18
19
20
21
22
23
2s
25
26
AM as -ars ACV W"
•7. TRANSMISSION LASrES•
7.1 Unless otherwise agreed and
except as provided in Sections 7.2 and
7.3. Vernon shall, at times and rates of
delivery as agreed by Vernons and
Edison's dispatchers or schedulers,
schedule deliveries of energy to Edison
as full payment for all electrical losses
incidental to all hourly scheduled energy
deliveries hereunder.
7.2 If Vernon does not schedule
energy as payment for transmission losses
in accordance with Section 7-.1, Vernon
shall purchase energy from Edison in an
amount equal to Vernons loss obligation
unless otherwise agreed. Edison shall
sell such energy to Vernon at a rate
equal to one hundred and fifteen percent
(115%) of Edison,s hourly average system
incremental cost as determined by Edison
at the end of the month. Such sale of
energy shall be deemed to occur in any
hour in which Vernon does not
simultaneously schedule energy to Edison
as payment for transmission losses, and
there shall be no charge for scheduling
-8-
0 raw .+ PwWSAW
I
and dispatching service associated with
2
such sale of energy.
3
7.3 For schedules of capacity and
4
associated energy or energy which
5
terminate at the City of Vernon Point of
6
Delivery, prior to determining Vernon's
7
credit for such capacity and/or energy
8
delivered by Edison for Vernon's account
4
hereunder, such capacity and/or energy
so
shall be reduced to reflect transmission
11
losses from the Mead Substation Point of
12
Receipt to the City of Vernon Point of
13
Delivery.
1
14
7.4 The applicable transmission loss
15
percentage rate for schedules of capacity
16
and/or energy in accordance with this
17
Agreement shall be equal to four and
18
forty nine one hundredths percent (4.49$)
19
of such hourly scheduled deliveries of
20
capacity and/or energy. Such percentage
21
rate may be changed upon agreement of the
22
Authorized Representatives.•
23
6.12 Section 8.1 of the Agreement is hereby deleted and
2s
the following is substituted therefor:
25
•8.1 For firm transmission service made
26
available by Edison to Vernon hereunder, during the
-10-
. sQ "-I" MEW /1(M
I
period commencing on the effective date of this
2
Amendment No. 1 to midnight December 31, 1994,
3
Vernon shall pay Edison monthly at an initial rate
a
equal to $1.71 per megawatt hour multiplied by 26
5
megawatts and multiplied by the number of hours in
6
the on peak billing period as that period is
7
defined in the Partial Requirements Rate. For firm
8
transmission service made available by Edison to
9
Vernon hereunder, during the period commencing
10
January 1, 1995 through the remaining term of the
11
Agreement, Vernon shall pay Edison monthly $1,250
12
per megawatt month multiplied by 26 megawatts.
13
Such initial rates shall be subject to change in
1
14
accordance with Section 11.'
15
6.13 Section 8.2 is hereby deleted and the following is
i6
substituted therefor:
17
18.2 For scheduling and dispatching service
18
provided by Edison pursuant to this Agreement,
19
Vernon shall initially monthly pay to Edison the
20
sum of the following:
21
8.2.1 $57.60 per day for each
'
22
combination of purchaser or supplier of
23
capacity and associated energy scheduled
24
by Vernon in a day;
2s
•
26
-10-
. sQ "-I" MEW /1(M
i
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• .a x-sn :Iry Wn.
1
8.2.2 $36 per day for each -combination
2
of purchaser or supplier of non-firm
3
energy scheduled by Vernon in a day; and
4
8.2.3 $36 per day for each combination
5
of supplier and transmission path used by
6
Vernon in a day to schedule energy
7
deliveries to Edison as payment of
a
transmission losses in accordance with
9
Section 7.9
ro
6.14
Section 9.1 is hereby deleted and the following is
11
substituted
therefor:
i2
•9.1 Edison shall render bills to Vernon for:
t3
(i) transmission losses, (ii) firm transmission
id
service, (iii) scheduling and dispatching service,
t5
and (iv) filing fees as provided in Sections 7.2,
76
8.1, 8.2 and 11.6, respectively, on or before the
•
17
tenth (10th) day of the month for such service
18
provided or fees incurred during the preceding
19
month. Vernon shall pay such bills within twenty
•
20
(20) calendar days after receipt thereof.'
21
7. SIGNATURE
CLAUSE: The signatories hereto represent that
22
they have been appropriately authorized to enter into this
•
23
2s
1 /
25
•
26
-11-
• .a x-sn :Iry Wn.
1
I Amendment No. 1 on behalf of the Party for whom they sign.
1 2 Executed this Cj. day of 1993.
3 SOVTHE CALIFORNIA EDISON COMPANY
s APPROIfED
BRYMT C. DANNER
1 5 esdent
BYAEC By: �[.•
6 'u Name: JOHN R. FIELDER
i9 ♦3 Title: Vice President
1 e
CITY OF VERNON
9
'�,�"�-moi'
1
Adonis C. valb-.:rg� mayor
12
13 ATTEST:
14
16 Bruce V. Malkenhorst, City Clerk
1
17
APPROVED AS TO FORM:
18
19
1 70 -
David B. Bre arley, City Attorney
21
22
1 23
2=
25
26
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1
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2
3
4
5
6
7
8
9
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13
14
15
16
17
18
19
20
21
22
23
23
25
26
APPENDIX B
AMENDMENT NO. 1 TO THE
INTEGRATED OPERATIONS AGREEMENT
BETWEEN
THE CITY OF VERNON
AND
SOUTHERN CALIFORNIA EDISON COMPANY
0 9= N -»s ■[v 11/M 0 �r�a+ryorsr�.
1
I
P,
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TABLE OF CQNIENTS
2
3
SECTION
TjTj,$
PAG,
4
1.
PARTIES
1
5
2.
RECITALS
1
6
3.
AGREEMENT
2
7
4.
EFFECTIVE LATE
17
8
9
10
tt
12
-
13
14
15
16
17
18
Tg
20
21
22
23
24
25
26
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'
AI-IENDMENT NO. 1 TO THE
2
INTEGRATED OPERATIONS AGREEMENT BETWEEN THE CITY OF VERNON AND
SOUTHERN CALIFORNIA EDISON COMPANY
3
4
1. PARTIES: The Parties to this Amendment No. 1 to the
5
Integrated Operations Agreement ("Amendment") are the City of
6
Vernon, a municipal corporation of the State of California,
7
("Vernon"), and the Southern California Edison Company, a
a
California corporation, ("Edison"), sometimes hereinafter
9
referred to individually as "Party," and collectively as
10
"Parties."
11
2. R C TALS: This Amendment is made with reference to the
12
following facts, among others:
13
2.1 On August 25, 1982, the Parties executed an
14
Integrated Operations Agreement ("IOA") which, among other
15
things, provides for the integration of City's entitlement in
16
the Palo Verde Nuclear Generating Station Units 1, 2, and 3.
.
17
For convenience, the Edison -Vernon IOA is hereinafter referred
18
to as "PVIOA."
19
2.2 By Letter Agreement, dated August 2, 1982 and
•
20
executed on August 25, 1982, the Parties agreed to modify the
21
PVIOA to conform with the changes ordered by the FERC to certain
22
terms and conditions in IOAs between Edison and each of the
23
Cities of Anaheim, Riverside, Colton, Azusa, and Banning
2s
("Generic IOA") after receiving a final order in FERC Docket
25
No. ER81-177 (Phase II) no longer subject to judicial review.
•
26
-1-
• sm is -»s • t r W" " 0 pofto r M000 7 paw
I
1
2.3 On September 20, 1990, the FERC issued Opinion
1
2
No. 289-A which finalized an order for Changes to certain terms
3
and conditions in the Generic IOA as it applies to Vernon.
4
2.4 The Parties desire to amend the PVIOA to conform to
r
s
the changes ordered by the FERC in the Generic IOA.
6
3. AGRFP_.MENT: The Parties agree that the PVIOA shall be
7
amended as follows:
r a
3.1 Section 5.16 is hereby deleted, and the following
9
is substituted therefor:
10
"5.16 Date of Firm Ogeration: The date when
1 11
(i) the City Capacity Resource has demonstrated
12
that a,il essential features and equipment can
13
reliably operate simultaneously so as to deliver
1 14
energy into the Edison Control Area at its Rated
1s
Capability, and the City Capacity Resource has been
16
released in writing by City to Edison, and
17
acknowledged in writing by Edison as an acceptable
18
capacity resource, for scheduling and dispatching,
19
(ii) the date agreed upon in the Supplemental
1 20
Agreement when City shall receive Capacity Credit
21
for the City Capacity Resource, or (iii) three
24'
years from the date of notice provided in
1 23
accordance with Section 8.1.1.3, whichever shall be
24
later."
25
3.2 Section 5.34 is hereby deleted, and the following
1 26
is substituted therefor:
9PM
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0
•
0
0
0
i
P,
0
0
1
2
3
4
5
6
7
a
9
ao
14
15
16
17
,a
19
20
21
22
23
24
25
26
"5.34 RRpacem.. nt Capacity: Capacity acquired by
City pursuant to Section 16.1.3 from (i) the
Scheduled Maintenance Account, (ii) a source inside
or outside Edison's Control Area, or
(iii) otherwise from Edison's system, to replace
kilowatts of Rated Capability unavailable from the
City Capacity Resource."
3.3 Section 5.37 is hereby deleted, and the following
is substituted therefor:
"5_37 ,q-hed"Ied Maintenance Account: That
account established annually for the City Capacity
Resource pursuant to Section ii.3, from which City
may from time to time acquire from Edison
Replacement Capacity for the City Capacity Resource
in lieu of otherwise acquiring such Replacement
Capacity from Edison or Third Parties.'
3.4 Section 8.1 is hereby deleted, and the following is
substituted therefor:
"8.1 City Capari,ty Resource: City may acquire
and integrate the Palo Verde Entitlement as the
City Capacity Resource to meet all or part of its
Firm Load, and Edison shall integrate the
Palo Verde Entitlement as the City Capacity
Resource, provided it meets the qualifications for
integration set forth in Section 8.1.1."
-3-
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1
2
3
a
5
6
t
a
9
10
11
12
13
14
15
16
17
,s
19
20
21
22
23
2s
25
26
IM U-"$ W ev t►/M
"8.1.1.6 City shall include provisions in its
contractual arrangements giving City a right to
transfer to Edison its interest in the proposed
City Capacity Resource in the event of City
abandonment, to the extent that this is practical
and legally possible. If, under any circumstances,
City decides to abandon its involvement in the
proposed City Capacity Resource before completion
of construction or acquisition, Edison shall have
the right to assume ownership or be assigned the
contractual arrangement, to the extent above
provided, of the City Capacity Resource, and the
responsibility for its completion, upon reimbursing
City for all costs incurred by City in connection
with such City Capacity Resource; provided, that,
City shall have the right to either:
8.1.1.6.1 Sell its ownership in such proposed
City Capacity Resource to any other integrated
entity within the Edison Control Area so long as
such other entity simultaneously commits to the
completion of such proposed City Capacity Resource
and to integrate such Resource as a City Capacity
Resource under an integrated operations agreement;
or
8.1.1.6.2 Proceed with such abandonment and not
sell its ownership in such proposed City Capacity
-5-
aft&Wy OMW
6
am
0 MMU -s" new 11/N a hr y"or"Mt
7
Resource to Edison or any other such entity:
2
(i) if City has acquired and integrated, pursuant
3
to Sections 8.1.1 and 8.1.2, an appropriate
a
alternative City Capacity Resource, or (ii) if the
5
existing and planned Capacity Resources available
6
to meet the Firm Loads within the Edison Control
7
Area are deemed by Edison to be adequate without
8
such proposed City Capacity Resource."
9
3.10 Section 8.1.2.3 is hereby deleted, and the
70
following is substituted therefor:
•
ii
08.1.2.3 Within sixty (60) days of the later of
is
(i) receipt by Edison of the information on the
13
proposed City Capacity Resource pursuant to
14
Section 8.1.2.1, or (ii) the agreement on
15
Transmission Facilities as required by
76
Section 8.1.1.4, Edison shall inform City in
77
writing as to its decision regarding acceptance for
18
integration of the proposed City Capacity Resource.
79
If the proposed City Capacity Resource meets the
20
qualifications for integration, Edison shall
21
integrate the proposed City Capacity Resource. If
22
Edison concludes that the proposed City Capacity
23
Resource does not meet the qualifications for
2s
integration, Edison shall so inform City of
25
Edison's opinion and shall, based upon Edison's
26
preliminary studies, fully state in detail the
am
0 MMU -s" new 11/N a hr y"or"Mt
b
I
reasons for its conclusion. Thereafter, within
2
thirty (30) days following the request by City,
3
Edison shall make available for examination by
4
City, the plans and specifications for similar
5
Edison existing or planned Capacity Resources." -
6
3.11
Section 8.2 is hereby deleted, and the following is
7
substituted
therefor:
g
"8.2 Renlac meot Capacity: If City
9
acquires Replacement Capacity from Third Parties,
10
such Replacement Capacity shall be integrated;
11
provided, it meets the qualifications set forth in
12
Section 8.2.1."
13
3.12
Section 8.2.2.1 is hereby deleted, and .the
14
following is
substituted therefor:
15
"8.2.2.1 City shall notify Edison at the
16
earliest possible date of (i) its desire to
17
integrate such Replacement Capacity, (ii) the
�a
source of and all pertinent data pertaining to the
19
proposed Replacement Capacity, including the
20
principles of City's agreement with the Third Party
21
supplying said Replacement Capacity, and
22
(iii) information regarding the proposed
23
arrangements for transmission service."
24
3.13
Section 8.3.1.3 is hereby deleted, and the
25
following is
substituted therefor:
26
-7-
OCt M -»s REV tl/"
F a..gc.apow
1
"8.3.1.3 City Transmission Facilities providing
1
2
transmission for City shall be capable of
3
performing in a manner consistent with good utility
4
practices."
1 5
3.14
The words "seven days" in Section 8.4.2.1 are
6
hereby deleted, and the words "twenty one days" are substituted
7
therefor.
a
3.15
Section 8.4.2.2 is hereby deleted, and the
9
following
is substituted therefor:
10
"8.4.2.2 Edison shall review City's proposal to
11
determine if scheduling of Nonfirm Energy into the
12
Edison Control Area is feasible and shall, within
13
sixteen days, notify City if City's proposed
i 14
Nonfirm Energy is accepted for integration."
1s
3.16
Section 8.4.2.3 is hereby deleted, and the
16
following
is substituted therefor:
17
"8.4.2.3 If Edison accepts such Nonfirm Energy
18
for integration, Edison and City shall agree on the
19
date on which schedules of such Resource may begin
20
provided that such date shall, unless otherwise
21
agreed by the Parties, be no later than 21 days
22
after Edison's receipt of notice in accordance with
23
Section 8.4.2.1."
24
3.17
Section 9.4.1.3 is hereby deleted, and the
25
following
is substituted therefor:
1 26
//
-8-
I SCS a -as REV oil" 0 P-~WR:prrw
S
0
0
0
19 - 1 + RP
20 where:
21 R
22
23
24
25
26 /
RP =
MZ
Reserve contribution rounded
to the nearest kilowatt;
Reserve percentage expressed
as a decimal;
40 *CK " -am war W" 0 940"G. I MW
1
"9.4.1.3 If reduction in, or removal from
S
2
service of; a City Capacity Resource would cause
3
Edison to experience system reliability problems,
4
City shall be obligated to acquire Replacement
S
5
Capacity and energy from Third Parties either
6
inside or outside of the Edison Control Area, to
7
the extent and for the period that Edison would
8
have acquired replacement capacity had the system
9
reliability problem been due to a reduction in, or
10
unavailability of, rated capability from an Edison
11
capacity Resource."
12
3.18 Section 12.2 is hereby deleted, and the following
13
is substituted therefor:
14
"12.2 City Contribution to ins tall _d Res rv=:
15
City contribution to installed reserves shall be
16
expressed to the nearest kilowatt and shall be
17
determined as follows:"
18
R=$P x C
0
0
0
19 - 1 + RP
20 where:
21 R
22
23
24
25
26 /
RP =
MZ
Reserve contribution rounded
to the nearest kilowatt;
Reserve percentage expressed
as a decimal;
40 *CK " -am war W" 0 940"G. I MW
0
a
a
0
0
•
•
E
2
3
c
5
6
7
6
9
10
11
12
13
14
15
16
17
1a
19
20
21
22
23
2s
25
26
C = Rated Capability of a City
Capacity Resource rounded to
the nearest kilowatt.
12.2.1 The reserve percentage to be used in
Section 12.2 shall be equal to eighteen percent
(18%)."
3.19 Section 15.1.2 is hereby deleted, and the following
is substituted therefor:
"15.1.2 City shall be permitted to purchase energy
under Edison's Partial Requirements Rate in each
hour of the on -peak and mid -peak time periods in an
amount up to the City's maximum billing demand for
such time periods. City shall be permitted to
purchase energy under the Partial Requirements Rate
in each hour of the off-peak time period in an
amount up to the City's maximum billing demand
during the billing period, regardless of the time
period in which such billing demand occurred. City
may, Without restriction, resell such energy to
Third Parties in an amount up to, for the on -peak
and mid -peak time periods, the maximum billing
demand for those time periods, and, for the off-
peak time period, in an amount up to the Cityts
maximum billing demand incurred in a time period in
which Edison charges City for demand under the
Partial Requirements Rate. City shall be permitted
-10-
• 11c= ss-sss arr igloo
rr..r w wprWd oP
a
-11-
10 r -an Raw Ai/M
room III 4MV00 rrwr
I
to purchase energy under Edison's Partial
2
Requirements Rate each hour in an amount up to
3
City's maximum billing demand during the billing
a
period (regardless of the time period in which such
5
billing demand occurred and without the incurrence
6
by City of additional demand charge obligation to
7
Edison) to offset any obligation City may have to
8
purchase Contract Energy in accordance with
9
Section 16.2.1.1. The term "billing demand" as
10
used in this Section 15.1.2 is as determined in the
11
Partial Requirements Rate."
12
3.20 Section 16.1.3.2 is hereby deleted, and the
13
following is substituted therefor:
to
"16.1.3.2 After the Scheduled Maintenance
15
Account for the City Capacity Resource is
76
exhausted, by obtaining Replacement Capacity from
17
City Resources integrated for Replacement Capacity
t8
purposes, or by a purchase of Replacement Capacity
19
from one or more Third Parties inside or outside
20
the Edison Control Area, or Edison, or both;
21
provided that, in the case of a purchase from a
22
Third Party, such purchase shall meet those
23
qualifications and follow those procedures set
21
forth in Section 8 which pertain to the integration
25
and transmission of such Replacement Capacity. To
26
the extent City does not obtain Replacement
-11-
10 r -an Raw Ai/M
room III 4MV00 rrwr
r
D
D
a
u
•
•
•
J
•
1 Capacity from sources other than Edison as provided
2 above, Edison shall furnish and sell, and City
3 shall purchase such Replacement Capacity."
a 3.21 Section 16.2.1 is hereby deleted, and the following
5 is substituted therefor:
6 "16.2.1 Edison shall sell and City shall purchase
7 Contract Energy as required each hour which shall
8 equal the sum of the amount of Contract Energy
9 priced at Contract Energy Cost as determined under
10 Section 16.2.1.1, the amount of Contract Energy
» priced at Contract Energy Cost or at City
12 Incremental Cost as determined under
13 Section 16.2.1.2 and the amount of Contract Energy
14 priced on the basis of Edison generating resources
is used to provide Replacement Capacity as determined
16 under Section 16.2.1.3."
17 3.22 A new Section 16.2.1.1 is added as follows:
�8
016.2.1.1 The amount of Contract Energy priced
19 at Contract Energy Cost during each hour in which
20 the City Capacity Resource is unavailable shall not
21 be less than zero and shall equal the total energy
22 requirement of the City's Customer System Energy
23 Requirements (as such requirement is defined in the
24 Partial Requirements Rate during that hour), less
25 (i) the amount of energy available from Integrated
26 Resources (adjusted for transmission losses to the
-12-
0
0
i
1
2
3
4
5
6
T
a
9
10
11
12
13
14
15
16
1h
18
19
20
21
22
t 23
24
25
26
Point of Delivery for energy from such Resources
located on the supply side of the Point of
Delivery), (ii) the amount of energy received as
determined from schedules during that hour from
Non -Integrated Sources, as defined in and pursuant
to the Partial Requirements Rate in effect during
the billing period (adjusted for -transmission
losses to the Point of Delivery for energy from
such Resources located on the supply side of the
Point of Delivery), and (iii) the amount of energy
purchased by City under the Partial Requirements
Rate for Contract Energy purposes in accordance
with Section 15.1.2."
3.23 Existing Section 16.2.1.1 is hereby renumbered as
Section 16.2.1.2.
3.24 A new Section 16.2.1.3 is hereby added as follows:
"16.2.1.3 When the City purchases Replacement
Capacity from Edison pursuant to Section 16.1.3.2,
the associated Contract Energy shall be charged at
the average cost of energy production of the
generating units from which the City purchases
Replacement Capacity pursuant to Section 16.1.4.1."
3.25 Section 16.2.2 is hereby deleted, and the following
is substituted therefor:
"16.2.2 rnat-rantEnergy Cost: Except as provided
in Section 16.2.1.2 and Section 16.2.1.3, the cost
V= ,.-J" XKV 11i»
-13-
LI
C7
a
0
0
•
C
0
0
1 of Contract Energy for each hour shall be
2 determined by the following formula:
3 CEC = (OGFC x (H -A) + NFEP x A) + fOC x IH -A)) x 100
4 H H 100—L
5
6
7
e
9
10
11
12
13
14
1s
16
17
,s
19
20
21
22
23
24
25
26
Where:
CEC = Contract Energy Cost, expressed in terms of
dollars per kilowatthour. Such cost will be
determined and forwarded to City on or before the
end of any month, and shall be applicable to sales
of Contract Energy made by Edison to City in the
next succeeding month;
OGFC = Edison's oil and gas fuel cost, expressed
in terms of dollars per kilowatthour, for oil- and
gas-fired conventional, combustion -turbine, and
combined --cycle generation_ Such cost used to
determine the Contract Energy Cost applicable to
sales of Contract Energy by Edison to City in the
next succeeding month shall be determined in any
month by dividing (1) the cost, in dollars,
recorded by Edison for oil and gas consumed in
generating energy during the preceding month and
used in such generation (provided that such
recorded cost used in said determination shall be
adjusted to reflect changes in gas fuel prices,
known at the time Contract Energy Cost is
determined, that are .applicable to the month when
-14-
SM "-"$ RRr tf/N 0 P0109. CI MW
0
I
-I
u
r
0
i
I
sales of Contract Energy are made by Edison to
2
City), by (2) the number of kilowatthours produced
3
by said generation during such preceding month;
Q
H = The number of hours in such preceding
5
month.-
onth;6
6
A - The number of hours in such preceding month
7
during which Edison experienced minimum. load
8
conditions. A minimum load condition is deemed to
9
exist in any hour when, prior to said hour,
10
Edison's dispatcher estimates that (1) the total of
11
baseload generation, discretionary hydroelectric
12
generation, and oil- and gas-fired generation.
13
(excluding those amounts of oil- and gas --fired
14
generation and hydro generation on Automatic
is
Generation Control) operating at minimum load
16
levels, and available purchases of energy, all
17
during that hour, will exceed (2) the projected
18
load and regulating margin for the combined City
19
and Edison systems during that hour;
20
NFEP s The highest average recorded cost, in terms
21
of dollars per kilowatthour, incurred by Edison for
22
fifty percent of the non-firm energy purchased by
23
it from Third Parties during such preceding month.
24
Such cost shall include payments made by Edison to
25
Third Parries for transmission services,
26
-15-
/m W -WO R[Y 91JN
P"O" a1 ia"0671W
I transmission losses, and other separately
2 identified costs associated with such purchase;
3 OC = Edison's other costs associated With the
a production of energy, expressed in terms of dollars
5 per kilowatthour, from its oil- and gas-fired
6 conventional, combustion turbine, and combined -
7 cycle generation. Such other costs shall be equal
e to (i) the sum of money reported by Edison in its
9 latest Form 1 Report or its successor to the
10 Commission for those plants providing such
» generation for FPC Accounts 500, 502-507, and 510-
12 514, inclusive, divided by (ii) the sum of the net
13 generation (exclusive of plant use) from those
to plants as reported in such latest report. Such
15 other costs, as determined by Edison in any year
16 from such latest report, shall be applicable to
17 sales of Contract Energy made by Edison to City
tB during the twelve (12) month period commencing
19 June 1 of that year; and
20 L = Transmission losses, expressed in percent
21 of net generation, from oil- and gas-fired
22 conventional, combustion turbine, and combined -
23 cycle generation and from purchased power. Such
24 losses shall be determined annually from the point -
25 to -point and network transmission service losses
26 established by Edison for that year and the mileage
—16—
am u-"% ■ev tt/M 4 Poem •+cparow
0
-17-
0 we n -W% wcar it/"
rte/ M irOW/iR
1
from such generation, or from the points where such
2
purchased power is delivered to Edison's Control
3
Area, to the Point of Delivery. Such losses shall
4
be weighted in accordance with the net generation
5
(exclusive of plant use) and purchased power as
6
reported in Edison's latest Form 1 Report or its
t
successor to the Commission for such plants. Such
i
a
losses, as determined by Edison in any year from
9
such latest report, shall be applicable to sales of
10
Contract Energy made by Edison to City during the
tt
twelve (12) month period commencing June 1 of that
12
year."_
13
4. EFFECTIVE
DATE:
14
This
Amendment shall becon+e effective when accepted for
15
filing by
the FERC, but if upon such filing the FERC enters into
16
a hearing
to determine whether this Amendment is just and
17
reasonable, this Amendment shall not become effective until the
1a
first day
of the month following the date when an order no
19
longer subject to judicial review has been issued by the FERC
•
20
21
22
•
23
24
25
26
•
-17-
0 we n -W% wcar it/"
rte/ M irOW/iR
a
a
lk
a
0
J
1 determining this Amendment to be just and reasonable. Unless
2 otherwise agreed by the Parties, this Amendment shall remain in
3 effect until the date the PVIOA is terminated.
e
5
6 APPROV=
BRYANT C. DANNER
1993pr
9
10
CITY OF VERNON
12
��eonis C. Malburg,' Mayor
is
15 ATTEST:
SOUTHERN CALIFORNIA EDISON COMPANY
By: -104(
y :!C
Name: JOHN R. FIELDER
Title: Vice President
16
Is Bruce V. Malkenhorst, City Clerk
19
APPROVED AS TO FORK:
20
21
22
David B. Brearley, City Att ey
23
2s
25
26
-18-
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loo
r
b
P:
p
Ll
0
0
1
2
3
4
5
6
7
8
9
10
11
12
t3
14
15
16
17
18
19
20
21
22
23
24
25
26
. m= 80-wo Rt♦ n(M
APPENDIX C
EDISON-VERNON INTERRUPTIBLE
TRANSMISSION SERVICE AGREEMENT
BETWEEN
SOUTHERN CALIFORNIA EDISON
AND
CITY OF VERNON
r
0
0
F,
a
0
0
0
0
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TABLE OF CONTENTS
2
3
SECTION
TIME
perE
4
1.
PARTIES
i
5
2.
AGREEMENT
1
6
3.
TERM
1
r
4.
DEFINITIONS
i
8
5.
TRANSMISSION SERVICE
2
9
6.
TRANSMISSION LOSSES
4
10
7.
CHARGES
6
11
8.
BILLING AND PAYMENT
11
12
9.
RELEASE
12
13
10.
LIABILITY
12
to
11.
REGULATORY AUTHORITY
14
15
12.
AUTHORIZED REPRESENTATIVE
16
16
13_
NO DEDICATION OF FACILITIES
16
17
14.
NO THIRD PARTY RIGHTS
17
tg
15.
GOVERNING LAW
17
tg
16.
NOTICES
17
20
17.
UNCONTROLLABLE FORCES
18
21
18.
ASSIGNMENTS
20
22
19.
SIGNATURE CLAUSE
20
23
21
25
26
-i-
D= W -7N ftY 11/h
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. 26 / /
-1-
1
EDISON-VERNON INTERRUPTIBLE
TRANSMISSION SERVICE_ AGREEMENT
2
3
1. EARTH: The Parties to this Agreement are: City of
4
Vernon, a municipal corporation of the State of California,
5
(•Vernon•) and SOUTHERN CALIFORNIA EDISON COMPANY. a California
6
corporation ('Edison'), individually "Party. collectively
7
8
Parties.•
2. AGREEMENT: The Parties agree as follows:
9
3. TEM: This Agreement shall become effective on the date,
10
11
following execution by the Parties, when FERC approves the
i2
Edison -Vernon 1993 Settlement Agreement, of which this Agreement
13
is a part, without changes or conditions unacceptable to either
14
Party as determined in accordance with Section 7.2 of the
15
Edison -Vernon 1993 Settlement Agreement. This Agreement may be
16
terminated by either Party by giving ninety (90) days, advance
17
written notice of such termination to the other Party; provided,
t8
such notice may be given no sooner than three years after the
i9
effective date of this Agreement.
20
4. DEFINITION. The following terms, when used herein with
.
21
initial capitalization, whether in the singular or the plural,
22
shall have the following meanings:
23
4.1. Point(s) of Delivery: The points of
.
2s
interconnection between Edison, third parties and Vernon at
25
which Vernon or a third party accepts deliveries of energy from
. 26 / /
-1-
1
I Edison for Vernon's account. Such points are specified in
2 Exhibit 1.
3 4.2. Point(s) Qf ec,ipt: The points of interconnection
4 between Edison and third parties or Vernon at which Edison
5 accepts schedules of energy from a Supplier or Vernon for
6 Vernon's account or schedules of energy from Vernon or a
7 Supplier for a Supplier's account. Such points are specified in
8 Exhibit 1.
9 4.3 sug2lier: Any third party which schedules delivery
.10 of energy to Edison or accepts deliveries of energy from Edison
11 at a Point of Receipt for the account of Vernon or a third
t2 party.
13 4.4 Authorized BenresentALive: The representative of a
R 14 Party designated in accordance with Section 12.
15 5." TRANSMISSION SERVICE:
16 5.1 Subject to Sections 5.2, and 5.4 hereof, Edison
17 shall make available and Vernon shall purchase interruptible
18 transmission service over Edison's electrical transmission
19 facilities (or Edison's share of transmission facilities where
20 such facilities are owned by Edison and another entity(ies) in
21 co -tenancy, or Edison's transmission capacity entitlement where
22 such facilities are owned entirely by others) as specifically
' 23 provided for in Exhibit 1 from any Point of Receipt to any Point
24 of Delivery.
5.2 The availability of such transmission service shall
be determined at the sole discretion of Edison, and Edison
-2-
I
reserves the right to interrupt or curtail such service
z
hereunder at any time and for any reason upon oral notice given
3
by Edison's dispatcher. In the event transmission service is
4
curtailed, Vernon shall determine the schedule changes to be
s
made from its Suppliers and shall advise Edison's dispatchers of
6
such schedule changes.
T
5.3 Subject to the provisions of Section 5.2, Edison
8
shall, during the periods that Edison has agreed to provide such
9
interruptible transmission service specified in Exhibit 1,
10
accept delivery of energy scheduled by a Supplier and shall
11
concurrently deliver an equivalent amount of energy to the
12
specified Point of Delivery, or an equivalent amount of energy,
13
less transmission losses, to the City of Vernon Point of
1 14
Delivery.
15
5.4 If sufficient transmission capacity over and above
t6
Edison's own requirements to transmit firm and interruptible
17
energy for sale to its customers, for meeting its other
18
obligations and for providing system reliability is not
19
available to accommodate all requests made to Edison for
20
interruptible transmission service, Edison, at its sole
21
discretion, shall allocate transmission capacity.
22
5.5 Vernon may make arrangements with a third party to
23
use said third party's transmission facilities (or share of
2;
transmission facilities jointly owned by said third party with
25
other utilities, or said third party's share of transmission
26
capacity entitlement to such transmission facilities) to
-3-
' MM M -7M ftY IIfM
0
1 schedule and deliver energy to Edison at a Point of Receipt or
2 accept schedules and deliveries of energy from Edison at a Point
3 of Delivery, provided, that in such event, Edison shall not
4 accept delivery of such energy at such Point of Receipt or make
5 deliveries at such Point of Delivery until Vernon has caused
6 said third party to notify Edison, in writing, of the amounts of
7 transmission service that said third party will make available
8 to Vernon to such Point of Receipt or such Point of Delivery
9 using said third party's transmission facilities, share of
10 transmission facilities or transmission capacity entitlement in
• 11 such transmission facilities.
-4-
• /Q Ws" wsv $I/ft
i2
5.6 Vernon may make arrangements to use transmission
t3
facilities, Vernon either owns or has a right to use, to
•
14
schedule and deliver energy to Edison at a Point of Receipt.
15
6, TBA=ISSTQN LOSS=:
t6
6.1 Prior to determining Vernons energy credit for the
'`
non-firm energy delivered to the City of Vernon Point of
1$
Delivery by Edison hereunder, the amount of such non-firm energy
i9
scheduled to Edison by each Supplier at each Point of Receipt
•
20
shall be reduced to reflect transmission losses from such Point
21
of Receipt to the City of Vernon Point of Delivery. The
22
applicable transmission loss percentage rates for the hourly
•
23
scheduled energy deliveries shall be as specified in Exhibit 1.
2;
Such percentage may be changed in accordance with Section 11.
27
6.2 Vernon's applicable transmission losses for -use of
•
26
the Pacific Intertie ±500 kV DC transmission facilities shall be
-4-
• /Q Ws" wsv $I/ft
L
1 its proportionate share of the transmission losses resulting
2 from the scheduled deliveries of energy by Edison and the
3 entities having transmission service from Edison. Such
26 payment for transmission losses in accordance with this
•
-5-
0 !Cf "-we wav 11(M
a
transmission losses shall be the average transmission losses
•
s
resulting from the scheduled energy deliveries of both Edison
6
and the entities using transmission service from Edison on the
7
DC transmission facilities for each hour. In no case shall such
•
8
losses for interruptible transmission service be less than zero.
9
Any estimates of such transmission losses will be the
10
responsibility of Vernon. Actual transmission losses shall be
11
determined by the Los Angeles Department of Water and Power
i2
based upon the actual conditions and schedules existing on the
i3
t500 kV DC transmission facilities during the time interruptible
14
transmission service was provided.
15
6.3 Unless otherwise agreed, and except as provided in
16
Sections 6.1 and 6.3.2, Vernon shall, at times and rates of
17
delivery as agreed by Vernones and Edison's dispatchers or
1$
schedulers, schedule deliveries of energy to Edison as full
19
payment for all electrical losses incidental to all hourly
20
scheduled energy deliveries hereunder.
21
6.3.1 The applicable transmission loss
22
percentage rates for such scheduled energy deliveries shall be
•
23
as specified in Exhibit 1. Such percentages may be changed in
23
accordance with Section 11.
25
6.3.2 If Vernon does not schedule energy as
26 payment for transmission losses in accordance with this
•
-5-
0 !Cf "-we wav 11(M
10
Section 6.3. Vernon shall purchase energy from Edison in an
2 amount equal to Vernon's loss obligation, unless otherwise
3 agreed. Edison shall sell such energy to Vernon at a rate equal
4 to one hundred and fifteen percent (1151) of Edison's hourly
5 average system incremental cost as determined by Edison at the
6 end of the month. Such sale of energy shall be deemed to occur
7 in any hour in which Vernon does not simultaneously schedule
8 energy to Edison as payment for transmission losses, and there
9 shall be no charge for scheduling and dispatching service
10 associated with such sale of energy.
•
11 7. runHc&fi:
12 7.1 Transmission Service:
13 7.1.1 For interruptible transmission service
•
t4
made available by Edison to Vernon under this Agreement, Vernon
15
shall pay Edison for each kilowatthour scheduled for Vernon's
t6
account at rates equal to the rates specified in Exhibit 1.
1'
These rates are subject to change pursuant to Section 11.
�8
7.1.2 For transmission service specified in
t9
Exhibit 1 which is provided between the Point of Receipt or
•
20
Point of Delivery at Four Corners 345 kV Bus and a Point of
21
Delivery or a Point of Receipt, Vernon shall pay to Edison the
22
sura of (i) the rate specified in Exhibit 1 and (ii) the sum of
23
the following rates in mills per kilowatthour scheduled at the
2.1
Point of Receipt for the account of Vernon.
25
7.1.2.1 The quotient obtained by
.
26
dividing (i) fifty percent (50%) of the dollar charge made for
am
0 am W W"
0
1 that month, exclusive of property taxes, by Arizona Public
2 service Company ("Arizona,) to Edison pursuant to the Edison -
3 Arizona Transmission Agreement ('Edison -Arizona Agreement')
4 dated July 20, 1966, as amended, by (ii) the product of Edison's
5 entitlement in the Four Corners-Moenkopi 500 kV transmission
6 line, as it shall be determined from time to time, and the
7 number of hours in that month; plus
a 7.1.2.2 The quotient obtained by
9 dividing (i) fifty percent (50%) of the dollar charge made for
10 that month, exclusive of property taxes, by Arizona to Edison
11 pursuant to the Edison -Arizona Agreement, by (ii) the product of
12 Edison's entitlement in the Hoenkopi-Eldorado 500 kV
13 transmission line, as it shall be determined from time to time,
• 14 and the number of hours in that month, plus
t5 7.1.2.3 The quotient obtained by
115 dividing (i) fifty percent (50%) of Edison's estimate of the
• 17 dollar charges to be made to Edison during the year containing
is such month by Arizona for property taxes pursuant to the Edison -
'9 Arizona Agreement g by (ii) the product of Edison's entitlement in
20 the Four Corners-Hoenkopi 500 kV transmission line, as it shall
21 be determined from time to time, and 8760 hours; provided,
22 however, that if, in any one year, the actual charges to Edison
0 23 by Arizona for property taxes pursuant to the Edison -Arizona
24 Agreement differ from Edison's estimate of such charges for that
25 year by more than $6,000, a retroactive adjustment shall be made
26 using the actual charges to Edison for that year; plus
-7-
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21 Section 7.1.2.1; plus
22 7.1.3.2 The rate set forth in
23 Section 7.1.2.2; plus
24 7.1.3.3 The rate set forth in
25 Section 7.1.2.3; plus
! 26 //
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I
1
7.1.2.4 The quotient obtained by
r
2
dividing (i) fifty percent (50*) of Edison's estimate of the
3
dollar charges to be made to Edison during the year containing
4
such month by Arizona for property taxes pursuant to the Edison -
5
Arizona Agreement by (ii) the product of Edison's entitlement in
6
the Koenkopi-Eldorado 500 kv transmission line, as it shall be
7
determined from time to time, and 8760 hours; provided, however,
0
8
that if, in any year, the actual charges to Edison by Arizona
4
for property taxes pursuant to the Edison -Arizona Agreement
10
differ from Edison's estimate of such charges for that year by
11
more than $6,000, a retroactive adjustment shall be made using
12
the actual charges to Edison for that year.
13
7.1.3 For transmission service specified in
•
14
Exhibit 1 which is provided between the Point of Receipt or
�5
Point of Delivery at Four Corners 500 kv Bus and a Point of
t6
Delivery or a Point of Receipt, Vernon shall pay to Edison the
•
17
sum of (i) the rate specified in Exhibit 1 and (ii) the sum of
'8
the following rates in mills per kilowatthour scheduled at the
i9
Point of Receipt for the account of Vernon.
20
7.1.3.1 The rate set forth in
21 Section 7.1.2.1; plus
22 7.1.3.2 The rate set forth in
23 Section 7.1.2.2; plus
24 7.1.3.3 The rate set forth in
25 Section 7.1.2.3; plus
! 26 //
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I
I
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b V= "-,n w[r We*
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1
7.1.3.4 The rate set forth in
2
Section 7.1.2.4.
3
7.1.4 For transmission service provided between
4
the Point of Receipt or Point of Delivery at Moenkopi Switching
s
Station and a.Point of Delivery or a Point of Receipt, Vernon
6
shall pay to Edison the sum of W the rate specified in
7
Exhibit 1 and (ii) the sum of the following rates in mills per
9
kilowatt hour scheduled at the Point of Receipt for the account
9
of Vernon.
fQ
7.1.4.1 The rate set forth in
11
Section 7.1.2.2; plus
12
7.1.4.2 The rate set forth in
13
Section 7.1.2.4.
R
to
7.2 Scheduling_ and Dispatching Service:
15
7.2.1 Vernon shall pay for scheduling and
16
dispatching services provided by Edison hereunder as follows:
f
1'
7.2.1.1 $36 per day for each
�s
combination of Supplier, Point of Receipt and Point of Delivery
'9
for which Vernon requests and is granted interruptible
20
transmission service from Edison during any day, regardless of
2'
whether or not energy is scheduled from such Supplier during
22
that day.
S
23
7.2.1.2 For interruptible
23
transmission services provided during any day involving the use
25
of the Pacific Intertie ±500 kv DC transmission facilities,
�
26
Vernon shall pay Edison the additional sum of $36 per day to the
WE
b V= "-,n w[r We*
/w,wl r -qO/ /OW
I amount stated in Section 7.2.1.1 in order to administer and
2 account for the loss provisions specified in Section 6.2-
3 7.2.1.3 If energy is scheduled
d pursuant to Section 6.3 during any day, Vernon shall pay to
5 Edison, for transmission loss accounting, an additional sum per
6 transaction of $36 for that day.
7 7.2.2 Such daily charges shall be waived for
8 any day during which no communication pertaining to schedules of
9 energy under this Agreement is made between the dispatchers of
i0 Vernon and Edison.
7.2.3 The charges for scheduling and
12 dispatching service shall be redetermined by Edison prior to
i3 January 1 of each year based on Edison's annual budget for load
1b 14 dispatching and production section function expenses for that
15 year .
10 7.2.4 Any change in scheduling and dispatching
17 charges, if required to be filed as a rate change with FERC.
�8 shall be filed 60 days in advance of7anua
ry 1, or pursuant to
19 section 11.2.
20 7.2.5 Vernon shall not oppose nor request a
21 hearing with FERC concerning charges for scheduling and
22 dispatching services as redetermined by Edison and such
. 23 redetermined charges shall remain in effect until changed
24 pursuant to the foregoing or changed pursuant to Section 11.2.
25 However, Vernon shall have the right to review the exhibits, as
26 filed with FERC, for such redetermined charges.
-10-
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1
1 8. BILLING AND PAYMENT:
2 8.1 Edison shall render bills to Vernon
by the 10th day
3 of the following month for services provided hereunder during
S the preceding month. Vernon shall pay such bills within
5 twenty (20) calendar days after receipt thereof.
6 8.2 Bills for charges pursuant to sections 7.1.2, 7.1.3
T and 7.1.4 and their applicable subsections, may be rendered on
9 the basis of estimated billings received by Edison from Arizona;
9 appropriate adjustments shall be made on the next regular
'o billing to Vernon following receipt by Edison of an adjusted
" Arizona bill.
12 8.3 Vernon -shall have the right to audit, on an annual
13 basis, the billings received by Edison from Arizona which relate
14 to the rates set forth in Sections 7.1.2, 7.1.3, and 7.1.4 and
is their applicable subsections.
16 8.4 Bills which are not paid in full by Vernon by said
17 due date shall thereafter bear interest at the monthly rate
1s established by the FERC, in accordance with 18 C.F.R. 135.19(a),
19 applied to the unpaid balance prorated
by days until payment is
20 received by Edison.
27 8.5 In the event any portion of any bill is disputed,
22 Vernon shall pay the bill including the disputed amount to
23 Edison under protest when due. If the protested portion of the
24 payment is found to be incorrect, Edison shall refund to Vernon
25 any amount due including interest at the monthly rate
26 established by FERC in accordance with 18 C.F.R. §35.19(a),
-11-
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0
prorated by days from the date of payment by Vernon to the date
2 the refund check is mailed by Edison.
3 9. BELLE=:
4 9.1 Notwithstanding the provisions of Section 10, the
5 Parties recognize that the transmission service provided by
6 Edison under this Agreement may be interrupted or curtailed by
7 Edison, at any time, at Edison's sole discretion, pursuant to
8 Section 5.2.
-12-
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9
9.2 Edison shall not be liable to Vernon, and Vernon
.10
hereby releases Edison from and indemnifies Edison against any
11
claim, demand, liability, loss or damage, whether direct,
t2
indirect or consequential incurred by Vernon, Supplier, or
13
others which results from such interruption or curtailment of
14
transmission service under this Agreement.
�5
10. LIABILITY:
16
10.1 Except for any loss, damage. claim, cost, charge or
17
expense resulting from Willful Action, neither Party, its
t8
directors, governing bodies, officers, employees, nor agents
19
shall be liable to the other Party for any loss, damage, claim,
20
cost, charge, or expense of any kind or nature incurred by the
21
other Party (including direct, indirect or consequential loss,
22
damage, claim, cost, charge or expense; and whether or not
23
resulting from the negligence of a Party, its directors,
24
governing bodies, officers, employees or any person or entity
2'
whose negligence would be imputed to such Party) from
i
26
(i) engineering, repair, supervision, inspection, testing,
-12-
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•
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I
protection, operation, maintenance, replacement. reconstruction,
2
use, or ownership of such Party's electric system, or (ii) the
3
performance or nonperformance of the obligations of a Party
4
under this Agreement. Except for any loss, damage, claim, cost.
5
charge, or expense resulting from Willful Action, each Party
6
releases the other Party, its directors, governing bodies,
7
officers, and employees from any such liability.
0
8
10.2 Except for liability resulting from Willful Action,
9
a Party whose electric customer shall make a claim or bring an
10
action for any death, injury. loss or damage arising out of
•
11
delivery of, interruptions to. or curtailment of electric
i2
service to such customer shall indemnify and hold harmless the
t3
other Party, its directors, governing bodies, officers,
•
14
employees, and agents from and against any liability for such
'S
death, injury, loss or damage. The term •electric customer'
16
shall mean an electric consumer, except an electric utility
•
17
system to whom power is delivered for resale.
18
10.3 For the purpose of this section 10, Willful Action
�9
shall be defined as action taken or not taken by a Party at the
4
20
direction of its directors, governing bodies, officers, or
21
employees having management or administrative responsibility
22
affecting its performance under this Agreement, which action:
•
23
(i) is knowingly or intentionally taken or not taken with
24
conscious indifference to the consequences thereof or with
2'
intent that injury or damage would result or would probably
•
26
result therefrom; or (ii) has been determined by final
-13-
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I
I
arbitration award or final judgment or judicial decree to be a
2
material default under this Agreement and which occurs or
3
continues beyond the time specified in such arbitration award or
4
judgment or judicial decree for curing such default or, if no
5
time to cure is specified therein, occurs or continues
6
thereafter beyond a reasonable time to cure such default; or
7
(iii) is knowingly or intentionally taken or not taken with the
! 8
knowledge that such action taken or not taken is a material
9
default under this Agreement.
10
10.3.1 Willful Action does not include any act
1 "
or failure to act which is merely involuntary, accidental, or
12
negligent.
13
10.3.2 The phrase 'employees having management
74
or administrative responsibility,• as used in this Section 10.3,
15
means the employees of a Party who are responsible for one or
i6
more of the executive functions of planning, organizing,
! 17
coordinating, directing, controlling, and supervising such
'$
Party's performance under this Agreement with responsibility for
19
results.
20
11. REGULATORY ALTHORITY:
2'
11.1 It is understood that the initial rates for service
22
hereunder are based on a rate of return of 9.44 percent. At
! 23
such time as the CPUC finds a new overall rate of return on
24
retail operations to be reasonable for Edison and authorizes
25
rates based on such new rate of return to become effective, the
26
rates for service hereunder shall be redetermined based on said
-14-
! sm M -,N ■ [v W"
10
I new rate of return_ Such redetermined rates for interruptible
2 transmission service shall be applied to service rendered
3 hereunder on and after the day when the CPUC has authorized
4 retail rates based on such new rate of return to become
5 effective. in addition, if either Party believes that, for
6 reasons other than a change in rate of return, there has been a
7 significant change in Edison•s annual revenue requirements for
8 the facilities upon which rates for service hereunder are based,
9 such party may request that the rates be redetermined.
to Following such request, Edison shall redetermine such rates
11 which shall be effective as of the first day of the month
12 following the date of such redetermination; provided, that such
13 a redetermination may be made no sooner than twelve months after
14 the most recent redetermination of rates for service for reasons
is other than a change in rate of return. Any redetermination of
�6 rates for service pursuant to this Section 11.1 shall be
t7 determined in a manner consistent with the method by which the
�8 initial rates for service hereunder were determined and shall be
'9 based on conditions in existence at the time of such
20 redetermination. Vernon shall have the right to review the
2' exhibits, as filed with FERC, and to intervene and protest such
22 redetermined charges. Nothing in this Section 11.1 shall be
23 interpreted as agreement by Vernon that a rate redetermination
24 in accordance with the methodology stated is appropriate for
25 ratemaking. Accordingly Vernon reserves the right to contest
26 any FERC filing made pursuant_ to this Section 11.1.
9= W -WO • ev M"
-15-
1
1 11.2 Nothing contained herein shall be construed as affecting in
-16-
• a= "-w •ew 19!90
2
any way the right of Edison, in furnishing service under this
3
rate schedule, to unilaterally make application to the FERC for
d
a change in rates, charges, classification, or service, or any
5
rule, regulation, or contract relating thereto, under
6
section 205(d) of the Federal Power Act and pursuant to the
7
Rules and Regulations promulgated by FERC thereunder, and have
8
such change become effective pursuant to section 205(e) of the
9
Federal Power Act.
10
11.3 Nothing contained herein shall be construed as
11
affecting in any way the right of Vernon to oppose any filing
t2
for changes to this rate schedule or to make application to the
13
FERC for a change in rates, charges, classifications, or
14
services, or any rule, regulation, or contract relating thereto,
t5
under Section 206 of the Federal Power Act.
t6
11.4 Vernon shall reimburse Edison for all filing fees
•
17
incurred by Edison for this Agreement.
'g
12. AUTHOR2ZED_REPRFSENTATIVE: within thirty (30) days after
'9
the date of execution of this Agreement, each Party shall
•
20
designate by written notice to the other Party a representative
2'
who is authorized to act on its behalf in the implementation of
22
this Agreement. Either Party may at any time change the
•
23
designation of its Authorized Representative by written notice
24
to the other Party.
25
13. NC DEDICATION OF FACILITIES; Any undertaking by one Party
26
to the other under any provision of this Agreement shall not
-16-
• a= "-w •ew 19!90
-17-
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I
constitute the dedication of the system or any portion thereof
2
of either party to the public or to the other Party, and it is
3
understood and agreed that any such undertaking by either Party
d
shall cease upon the termination of this Agreement.
•
5
14. NO THIED PMTy RIGHTS: Except as otherwise specifically
6
provided in this Agreement, the Parties do not intend to create
7
rights in, or to grant remedies to, any third party as a
8
beneficiary of this Agreement or of any duty, covenant,
9
obligation or undertaking established herein.
10
15. QQ3LWHIHQ LAW: This Agreement shall be interpreted,
11
governed by, and construed under the laws of the State of
12
California or the laws of the United States, as applicable, as
13
if executed and to be performed wholly within the State of
•
14
California.
15
16. NOTICES: Any notice, unless otherwise provided in this
t6
Agreement, given or made in connection with this Agreement,
17
shall be in writing and shall be deemed properly served, given
18
or made if delivered in person or sent by United States mail,
i9
postage prepaid. to the persons specified below:
•
20
Southern California Edison Company
c/o Secretary
21
P.O. Box 800
Rosemead, California 91770
22
City of Vernon
0
23
By notice sent to the other Party, either Party may designate
24
different persons or different addresses for the giving of
25
notices hereunder.
•
26
//
-17-
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0
25 action or nonaction by, or inability to obtain necessary
a 26 authorizations or approvals from any governmental agency or
0
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1
17. IMONTROLLABLE FORCES:
2
17.1 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 payments
5
hereunder) when a failure of performance shall be due to an
6
uncontrollable force. A Party rendered unable to fulfill any of
7
its obligations under this Agreement by reason of an
8
uncontrollable force shall exercise due diligence to remove such
9
inability with all reasonable dispatch. Nothing contained
10
herein shall be construed so as to require a Party to settle any
11
strike or labor dispute in which it may be involved.
12
17.2 Edison reserves the right to temporarily interrupt
t3
and curtail service under this Agreement without notice to
•
14
Vernon or Supplier if such interruption or curtailment is caused
15
by an uncontrollable force. Such curtailment may be related to
16
implementation of mutual load -shedding arrangements agreed upon
•
17
by the Parties.
i8
17.3 For the purposes of this Agreement, an
t9
uncontrollable force shall be any cause beyond the control of
•
20
the Party affected, including but not limited to, failure of or
21
threat of failure of facilities, flood, earthquake, storm, fire,
22
lightning, epidemic, famine, war, riot, civil disturbance or
23
disobedience, labor dispute, labor or material shortage,
2'
sabotage, restraint by court order or public authority, and
25 action or nonaction by, or inability to obtain necessary
a 26 authorizations or approvals from any governmental agency or
0
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authority which, by exercise of due diligence and foresight,
2 such Party could not reasonably have been expected to avoid and
3 which, by exercise of due diligence, it has been unable to
4 overcome.
5
7 l/
8
10
12
13 l /
14
tis
16
17
18
19
20
21 l /
22
23 l /
2-1
2s
26
-19-
Sat 0-3" Rev II/M a POW r-apolodPROOF
1 18. ASSIGNMENTS: The interruptible transmission service made
2 available to Vernon by Edison in accordance with this Agreement
3 shall not be sold or assigned by Vernon to a third party.
4 19. SIGNATURE, CLAUSE: The signatories hereto represent that
5 they have been appropriately authorized to enter into this
6 Agreement on behalf of the Party for whom they sign.
7 Executed as of ap , 1993.
1 e
APPRCV`'4 SOUTHERN CALIFORNIA EDISON COMPANY
9 BRYANT C. a; z -R
k r,
10 BY Ely:
Attorr*y
11 �a s'3 Name: JOHN R. FIELDER
12 Title: Vice President
0
0
•
K]
0
13
CITY OF VERNON
14
15
Cnis C. Malburg, Mayor
17
18 ATTEST:
19
20 4,7
21 Bruce V. Malkenhorst, City Clerk
22
APPROVED AS TO FORM:
23
2-3
25
David B. Brearley, City Attorney
26
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Appendix D
C7
0 May 25, 1993
Mr. Bruce V. Malkenhorst
City Administrator/City Clerk
City of Vernon
5305 Santa Fe Ave.
Vernon, CA 90038
• Re: City of Vernon WSPP Membership
Dear Mr. Malkenhorst:
49 On February 3, 1989. Mr. LT. Papay notified the City of Vernon, on behalf
of the Western Systems Power Pool (WSPP) Executive Committee that Vernon's
membership in the WSPP was subject to the completion and the FERCs acceptance of
the necessary contractual arrangements between Vernon and the Southern California
Edison Company (Edison) for Vernon to operate in Edison's control area for WSPP
transactions, and the notification of all WSPP parties of such completion and
acceptance by both Vernon and Edison.
This letter is to document that Vernon and Edison have entered into the
necessary contractual arrangements for Vernon to operate in Edison's control area for
• WSPP transactions. With the condition met, Edison supports Vernon's membership in
WSPP. Edison agrees this letter may be utilized by Vernon to notify all WSPP parties
that the necessary control area contractual arrangements have been completed for
Vemorfs participation in the WSPP.
•
Very truly yours,
•
s •
E
•
•
.-A
Appendix E
Southern Cafitornia Edison Comoany
O sox 000
_2" WALNUT Gi1QV( AVlWU(
'U)S4tMRA0. CAKjsowKu f t 710
-OliGt1S0 MITONTO _.wr"PAAr►MMT
October 5, 1992
j. David Fitzsimons. Esq. By Mas„Saaaar
2440 South Hacienda Blvd.. 4223
Hacienda Heights, CA 91745
Re: City of Vernon v. Energy Services, Inc.
and Southern California Edison Company;
Arbitration No. 72-199-0468-89,
American Arbitration Association
Dear Mr. Fitzsimons:
This letter will confirm our telephone conversation on
October 1; 1992, wherein it wax agreed that Edison would provide
0 you with the enclosed documents provided that it is understood
and agreed Edison reserves its rights.
These documents are property of Edison and Vernon has
no right to these documents. Some of these documents include
Privileged coatmuaications and work product and the provision of
! these documents to Vernon is not a waiver by Edison of any
privilege or right and it does not constitute an admission that
Vernon has any right to the documents. Furthermore. Edison is
not waiving any privilege on the issues or topics discussed in
these documents, nor is Edison intending to waive the privilege
as it pertains to these issues, or topics that may be contained
! in other documents.
Edison is providing Vernon with these documents.zn the
spirit of good faith cooperation in the context of the above -
referenced arbitration so that Vernon and Edison may avoid
further costly and protracted arbitration.
•
Attached as an Appendix to this .Letter is a list
identifying those few documents, out of 120 boxes of documents
reviewed by Vernon, that Edison is not providing to Vernon. As
you can see, the documents withheld by Edison, for the most parc,
represent internal memorandum regarding. confidential and
•
0
F]
•
avid Fitzsimons, Esq.
?age 2
:ctober 5. 1992
privileged matters. Please review this list and call me to
discuss whether Vernon considers these documents still in
dispute.
• if the foregoing does not comport in every regard with
your understanding -of our agreement, then contact me immediately.
•
+=9o:MMP:wf2273G.019
Enclosures
•
•
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C�1
0
very truly yours,
0
Y A'ST CF COCLIMENTS NOT PRODUCED 1`0 VERNON
:SER
:'±iAT E REVIEWED PURSUANT TO THE STIPULATION ZN :HE :-'AT',ER
OF CITY OF 'VERNON V. ENERGY SERVICES. INC. AND SOUTHERN
CALIFORNIA EDISON CCMPANY; ARBITRATION NO. 2-199-0468-03:
. :XERICAN aRBITRATICN ASSOCIAT.CN
::CCUX=
:+UMBER DESCRIPTION
1 Memorandum, *Resale Cities Legal Actions,' no
date, no author.
2 Memorandum, July 15, 1971, John L. Dee to
Smith B. Davis, regarding Vernon resale -retail
rate level differential.
3 Memorandum. December 29, 1971. J. E. Conner to
David J. Fogarty, regarding City of Vernon -
sale of diesel engine -generators.
4 Memorandum, July 31, 1972, M. R. Mosquini to
• file, regarding resale rate negotiations.
S Memorandum, August 8, 1972, M. R. Mosquini to
file, regarding Vernon resale service
negotiations.
• b Memorandum, August 28, 1972, M. R. Mosquini to
file, regarding Edison -Vernon Service
Agreement -
0
7 Memorandum, November 8, 1972, K. R. Mosquini
to file, regarding Edison -Vernon negotiations.
8 Memorandum, November 14, 1972, William C.
Drewry to W. E. Marx, regarding settlement
agreement between Edison and -the City of
Vernon. -
• 9 Memorandum, November 17, 1972, M. R. Mosquini
to George A. Crum, regarding Edison -Vernon
agresent .
10 Memorandum, June 17, 1975, N. A. Stewart to
George A., Crum, regarding renegotiation of
Vernon operating agreement.
August 13, 1975, Robert L. Myers
to file, regarding City of Vernon.
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IT
7'ti:p ER
::ESCRI . ::t
Vemorandum. ;une ='r83. =cbert L. :4hice :o
:cmas E. ,aber. regar-ding Federal=.scr-c_
Courc ^ocket No. 78-3810
ve_-orandum, .:une 15. _383. C. 2'. `rsbtree to
�. 'N. Barry, regarding status reporc cf resale
city activities.
;3 Memorandum. August 29. 1983, C. . Crabtree to
D. N. Barry, regarding status report of resale
city activities.
�9 Memorandum, February 23, 1984, R. L. White to
James Montague, regarding Vernon budgeting
procedures and diesel plant operation.
40 Memorandum, March 6, 1984. James P. Montague
to Richard G. Richter. regarding Vernon v. SCE
and related cross action, LASC Case C361781.
41 Memorandum, March 26, 1984, Robert L. White to
Tom E. Taber and Jim P. Montague, regarding
Antitrust Complaint No. 83-8137 and Diesel
Plant Complaint No. C-361781.
42 Memorandum, September 11, 1984, R. L. White to
R. D. Blake, regarding City of Vernon/Edison-
antitrust case.
43 Memorandum, October 24, 1984, author and
recipient unknown, regarding Exhibit 1.
Department Responsibility For Resale
Customers.
44_ Mworandue, November 13, 1984, Bob White to
Ron Blake, regarding memo to file on
historical information.
45 Letter, Dlcerber 2, 1986, Gerome G. Torribio
to Brum I. Drucker, regarding Consent and
Agreement.
46 Memorandun,-March 6, 1987, Robert L. White to
K. F. McQuade, regarding franchise agreements -
City of Vernon.
47 3 -ring binder, NArea Managers Seminar,
Municipalization and Local Governmental
Affairs,• held in December 1987.
I
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::=., 4ENT
::,,:SER :ESCEI: T ICN
Memorandum. S:eocember Z9, 1975. Fobert L_
:Byers to R. Mitc^ell. regarding City c:
7ernon-integrati:.n of diesel generators.
Memorandum, .ctober :6, 1475. R. L. Mitchell
to R. L. Myers, regarding City of Vernon -
integration of diesel generators.
i$ Memorandum, February 3. 1976, R. I.. Myers co
J. W. Evans and N. A. Stewart, regarding
negotiation of Vernon operating agreement.
15 Memorandum, February 26, 1976, Robert L. Myers
to D. N. Barry III, P. H. Clark, J. W. Evans,
and N. A. Stewart, regarding draft of
management briefing materials.
1Q
Memorandum, May 26, 1976, Leo E. Gargan to
file, regarding Vernon operating agreement,
meeting of May 25, 1976.
17 Memorandum, September 7, 1976, Leo E. Gargan
to file, regarding Vernon proposed operating -
agreement.
18 Memorandum, September 28, 1976, Leo E. Gargan
to file, regarding future utilization of the
Vernon diesel generating site by Edison.
i9 Memorandum, November 2. 1976, Leo E. Gargan to
J.• W. Evans, regarding Vernon operating
agreement.
20 Memorandum, December 7, 1976, Leo E. Gargan to
file, regarding Vernon operating agreement.
21 Memorandum, undated, Robert L. Myers to
Messrs. G. A. Crum, J. W. Evans, and N. A.
Stewart, regarding renegotiation of Vernon
operating agreement.
22 Memorandum, January 27, 1977, N. A. Stewart to
R. H. Sack, regarding progress of Edison -
Vernon negotiations.
23 Memorandum, January 28, 1977, Leo E. Gargan to
file, regarding Vernon operating agreement
meeting of January 27, 1977.
:;=A.ENT
:;G'MHER
�Z
Memorandum, : arc^ __ 1377. .:ohn W. Evans _o
Leo E. Gargan, regarding concracc�.:al
arrangements for ."erncn cFeracing agreement.
� 5
Memorandum, :larch 15. 1977. Z ohn W. Evans to
-Leo E. Gargan, regarding inclusion or a power
sale provision in the Vernon operating
agreement.
26
'14 randum, March 28. 1977. Leo E. Gargan to
W. W. Soelter, regarding Vernon operating
agreement.
`7
Memorandum, August 17, 1978, N. A. Stewart to
D. J. Fogarty, regarding letter from Mr. D. W.
Perkins.
�8 Letter, August 23, 1978, David J. Fogarty to
David W. Perkins, regarding letter from David
W. Perkins.
29 Letter, September 28. 1978, Rol Cordary to
David Fogarty, regarding visit of Keith K.
Kaesar.
8 30 Memorandum, September 22, 1978, N. A. Stewart
to P. L. Martin, regarding letter from Mr. Rol
Cordary.
31 Memorandum, February 7, 1980, Mark Emil
Mikulka to file, regarding PCB Enforcement
Action -City of Vernon and Energy Services,
Inc.
32 Memorandum, March 1, 1982, Robert L. White to
R. S. Beck, regarding 1961-82 Vernon district
r priorities.
33 Letter, September 17. 1982, M. J. Vogeler to
William D. Gooden, regarding power purchase
agreement.
34 Memorandum, September 22, 1982, C. E. Crabtree
to Bjorklund, regarding resale city matters.
35 Memorandum. April 1. 1983. C. E. Crabtree to
D. N. Barry, regarding status report of resale
city activities.
0
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OCUMENT
:UMBER
48
ESCRIP."=4N
Memorandum, .:ull 21, 1388, C. W. Luker _o
Regional affairs Managers. :egardinq Model
Utility User Tax Crdirance.
00
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0
Appendix F
American Arbitration Association
P_ O. Box 57994
Los Angeles, CA 90057-0994
Attention: Ms. Angela Shriever
Case Administrator
Re: Arbitration No. 72-199-0468-89;
City of Vernon and Energy Services
Incorporated
b Dear Ms. Shriever:
B
P
The parties in the above -referenced arbitration have
settled.
We mutually request that the arbitration be dismissed
with prejudice.
Sincerely,
DAVID B. BREARLEY
Attorney for
CITY OF VERNON
DOUGLAS P. DITONTO
Attorney for
ENERGY SERVICES, INC. and
SOUTHERN CALIFORNIA EDISON
COMPANY
CC: George W. McBurney, Sidley and Austin,
2049 Century Park East, Los Angeles, CA 90067
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APPENDIX G
ew&JFSwAwn Caif:OrnW Rdf w
12a$ Ift"GNOW awwM nmumsws Cawrnew ai ria
RULES
DEFIMITIon
Billing Oamsn4t the load or demand used for c~fnq charges carder rate schedales basad on me
site of the customer's load or demand. It may be the connected Toad, the measured demand,
or a modification of either as provided for in the applicable rata schadule.
Billing Parted: The time Interval between two consecutive meter readings that are taken for
billing purposes.
Cowpanyt Southern California Edison Company.
Company's Operating Convenience: The term refers to the utilisation, under certain
circwtaness, of facilities or practices not ordinarily employed Which contribute to tY.e
overall efficiency of the Company's operational it does not refer to customer conrMiance
or to the use of facilities or adoption of practices required to Comply with applicable
. laws, ordfaances, rules or regulations, or similar requirements of public authorities,
CaotrM EJUMV. K�7a WSUhoes ; —1 h— F nch boar by .. .. , . , fp= Caber potsosuit b the
hftz hdbd C r .. . Ageemeat
• Customer's plel It Addresse The address WOW in a Custemer'6 application or contract, or
any other address subsequaatly given to the COm*any by tie customer, to which any notice or
other comamicatlen Is b be Miled.
Otte of Presentation• The date upon which a bill or notice is malled, or delivered by the
Company, to the . - .
Distribution Linea$ Overhead pole line• and/or 1 ,, .w facilities consisting of conduit and
• cable which are operated at nominal distrfbut/d on veltages.
Integrated Operations A ,s An agreement between the custemar and Company which provides,
wham- a part or all of am electrical reWremwnte of the customer can be supplied by a
source or sources other thaw Company, rhes all mach soups be Integrated with C mpany's
system in accordance with provisions, of such
integrated Source$ A source of electrical ewergy or eieeb C41 opacity and associated ener9r
whhi cht ( 1) Is sdhodnl ed and di MW t h" by Ctnpany l and ( 2) Is integrated with Company' s
system in accordance with aur integrated operations agreement between customer and Company_
hailed $ Any hence or other caw■umi cation will be considered ''wiled" sign it Is enc l $sad In a
sealed enh*alope, properly addressed, awd depesitad in any united States Post attic! box,
postage prepaid.
riga lees Desn$nd t The a W"W h i 1 m acts during the specified "mit i ntarva l in the billing period
• Whew the . i . 's pgrlhaafe from C--- are tlteeteet or when the custAmr's total
remirast•mts are greeteat, u prevfded far in the applicable rate schedule.
iiominai MWtagew The nominal voltage of a circiwit is the appraximete voltage between conductors
in a cirewit or systm of a given e14ta, assigned for the pwrpoee of convenient
designation. for a" specific nominal voltage, the operating wattage actually existing at
varies points and at variowa times on the systos is sobjett to normal distribution
variation.
C�
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In lafooa
IS
roomsnuad)
Soudwwn California Edison
12as wes1mame.s a.o%^ taaam.«a C+smen. n rP@
RULES
DEFINITIONS
( Cant i nwe )
Soft-Int"rated Son►reet A source of slectefcal generation capacity and associated energy ohich:
(1) is not S006910d or dispatched by Coehpany; and (2 ) is not f ntegrated with Coapan7' i
systew in accordance with an integrated operations agreement between customer and Company.
Point of Deliverys The paean ohm ., of tAo Campaey are eomeeted to the cendwetors of
the custower , -"m mess of the Iocatian of the Ca■ponyIa meters or transformers. Company
conductors my be owned, leased, or under I Ione by the Company, and the conductors of the
customer may be owned, lees,", or undo► lleense by the customer.
I
mto =
1
(Cent! mud)
MCRIPTIOM OF SERVICE
A. General.
1.
The character of service available at any artieular locstios should be ascertained by
ingwir; at the Company's office. Service rill be sopliad by the Company at the
available nominal standard volts" at one polAt of doltvwy.
2.
The rate schedules included herein are applicable for service were the custoemr
'
purchases his entire electrical regesirwuhts from the Company and are not applicable
+there a part of the customer's alemetrical regwire■ents are sampplted from saes other
source except where rate schedules specifically provide otherwise.
3.
Tho rate schedules included herein are only applicable for sorvfte provided tram
overhead distri buts on faci 1 i ti es (or +lire i. , , . , Ind di stri but i on facilities are
provided for ties Compaq's operating eonvoeieneel except where schedules specifically
provide otherwise.
r +.
Alternating current service at- approxiesiely 60 -cycle froawency will be suoplfad.
S.
Valtalse referred to in the t&Mff schedules are nominal voits"*.
6.
Stansard nominal volt"" of the Company we as follomas
a. OistribiMen voltages - 120, 120/240, 240, 20/40, 277/4140, 240, 4160 volts;
or, dapeading on location, 40009 12,000, 14,400/24,900, 16,500 or 33,000 volts.
r
b. Veltapss in once" of 33,000 volts are trawad"Ies voltages. TeenwOssion
voltage available may be ascertained by inquiry at the Company's office. For Its
operating cemwomfemee, the Company Day elect to supply a customer from lines of
tranout"14a veltsge. In such case, tine customer Noy select as a standard
delivery Volta" cue of the fol/oosals Ib00, 4110, SM, 12,000, 13,800, 16,500
wi ns or so* ether vol tope as item Caepawy eey pore.•, provided that in no case
shel a owto� be to advance, to Ww
labtat
1
service beach hered
t o wou d be reophired to advance Yndsr the Company's Il�y
applicable to this particular load, it he score regularly served from the Company's
nearest appropriate facilities ordfnaMty empla ed.
7.
;1. pm wide a witrl. site, fear any WA&teti4w faeiIItia& reastirw*. The
Compawy, at its expense, .ill P~de y is one spa" or 1,o00 feet of conductors,
whicoweer fs toss. Adettiemei feellitiles rete(rott will be pMt for by the customer to
i I srtr► a& prowisions of Smisties 0. Addw& faw"Itfee. Service Niil be
provided at 220,000 volts at the evstommir's request only sahere the CYetammwr's "Aiew
demands are is axe*" of 160,000 kilawatto.
I
mto =
1
(Cent! mud)
• 7 Saudwn caUMonia Edhm
igen uww omw a0e01006 *boo m"& CamvwVrs sn "$
•
MULIES
ofuxtpTIQ1 or SMICE
(Continued)
vel. Interferants with Service.
1. Customers she" operations Cause detrimental welts" fluctuations must reasonably
limit such fluetastions upon revwst by Ilse Cempaty. The customer will be required to
M for whatever corrective measures are necessary.
2. Any custoaer who superioposes a current of any frequency upon any part of his
*Iettriesi sy{tic, other than tint CwrrO t supplied by Ne C*mpaRy, shall, at his
expenses prevent the transmission of such current bey eod his electrical system.
C. rave Form. The Compol way - fro that the ■eve form of current dram by a customer be in
conformity with good engineering practice.
D. Added Facilities. Added facilities are faeiiities provided by the Company which are in
addition tee or in Substitution fore the standard facilities which the Company would
normally install. Except ohare otherwise provided, by rate schedule or MWISl contract,
wan a cuatmew Oakes written application for added facilities and the installation of such
facilities is acceptable to the Caepamye the added facilities will be installed under the
follefffng conditional
• 1. The cisb~ 'shall pay a woodly charge for the added facilities is the amount of
1.60 percent Of the added tnvrstasmt as determined by the Company.
2. to the went that the added facilities ars abandoned prier to five years from the data
sent ce Is first rendered from the 66M facilities, tie customer will pay !o thhe
Company tine cast iaatalled of the added facilities plus the Coat of removal fess the
estimated salvage.
• E. 1 , ..ion. unless otherwise ststed to the rate sehedmle, the rate schedules or the
Company are applicable only for service supplied entirely by the Company without
intareeurhectiae with any other source of supply, smcept that In, ..ion may be wade by
dwAle-throw switch +Nus necessary to soft the minimum rooutraumts for .les.
•
NOT1 m
A. Notices to Castanets. i1hem notices free ace Company to a crostemmr are rewired, they elf iI
normelly be gives In writing, either moiled to do cwsemar's mailing address or delivered
to him, ancept thee is emergsmetes the Company may give oral notion.
D. Matic" from C Nations from a asstower to the C*wpany may be 91van by written
cow (cation mailed the the C*opsmy's office or My by gives *rally by him or his
awswri soil agmwt at fed Cowel l s Office wcept hihew hr i ttem notice Is spec i f i call y
• roweM is tariff schedules.
C. asww im Cmatemer's Egrsipewt or Operations. Custemse shall give the Company written
notice of the amtelit and nature of any meso I&I change in the algae character, or *stoat of
the utilizing egwipmewt or operations for which the Company is supplying electric service
before meting any web change.
•
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(Continued)
Soudvem CoWa lfii Edhm
tlss wsm.m oars a....ItOMIM a. Cammn n rte
SEs
RCMMIWC AND VAYMM OF SILLS
A. Rendering of •itis.
I- Billing Period. Bills for electric lervies will be rendered aonthly or as otherwfso
provided in tariff scAodules or special contracts.
2. Metered Service. Bills for entered service will be based on motor registration.
Meters will be road as rapired for the preparation of regular bills, opening bills,
any closing bills. It may not be possible always to read motors on the saw day of the
month, and should a monthly billing period contain loos than 27 dabs or more than 33
days, a we rata computation in the bill will be mace.
t
3. Pro Bata Compdtatioe. Except as preridad below, all bills for eloctric service
Pondered for periods of less than 27 days or more Nan 33 days on a monthly billing ;
period will be computed in epordan a with the applicable schedule, - t the six* of
the energy blocks, and the amount of the customer, sow am, domend, or ,fewa charge,
spoefffed !Derain, will be prorated om to beefs of the ratio of the nht. -or of days in
the period to this number of days in an average monthly parted, mhich for slnis purpose
shell be taken as 30 drys, or u otherwise provided ie tort" schadrlp.
G. Seeding of Separate Maters Not Combined. For the purpose of billing, cath meter upon the
customer's premises will be considered separately, and the readings of awe or more motors
will not be cambia" except as follows
1. More combination of mater readf
ngs are specifically provided for in tied rate
sehodule.
2. Mere the Company's operating cowvenlanee requires elle doe of more than one motor.
C. Paymom of Ofile. All bills are due and payable as presentations ash payaant should be
made at tin tampemy's office or to an autherftab representative or agent.
40 0. rpt Out title. tilts arm rassdorM osnNnty any wiii be considered past duo if not polo
within 20 days after date of presentation. 1111118 sAia ars net paid within 20 days after
tin ate of prssentatiat shall Wmeefter beer Interest at the then -current average prime
interest rate until payment is received by qhs Coss 1. The current average prime Interest
raft shall be the orfiinmetfe meen, to tft nearest ane -hundredth of one percent, of the
prime rob valves published to tM Federal Resoer+s_dullotie, or in the federal Reserve's
"Setaehd Into t dates" (Statistical Release u..lse, tar the fourth, Nerd, and a on d
months 01—to@ IM first memo of tab cwvvvt ca1ander quarto'.
0
DISi> WIlM WM AIG WSWATIOU OF SEEWIC9
A.ilOripayrMfc of tills. Hine o bill for eloctria soMas by not been paid within 60 days
atter the asst of presentation, it will be eomeldered delfraiment. Any time after a
cwt~ bill het bemoan del f alusat, qtraanmappeenny� will have the right to maim application to
Nm Fedorol Lwp tegulatefy Camimissfen o-iU ') for e-FUC Order directing flee Company to
dteoenttdms alae" a service to odds customer welesa the de{iaryeat bill is polo, togettm
wish all "vAneishe Interest, mithin 10 aye following the Issuance of FER6's Order.
tIT1103C.Rt
{Contlirssd)
„,O C Saud «n caWarr” Exon
U"W� Amw%k Ammomma CAN&VO ""0
mu
0I SCOUT 1 NUAMCIE APO RFS
t Cointi n
S. Unsafe Equipment. The Company euy refuse or
of his wiring or ather equiposnt, or the use
be -unsafe or in violation of aplitable law
authorities, or if any codition existing
determined to endanger dee Company's service
safe condition or the violation remedied.
The Camnpany does not ossume any mopw4lbt1
wiring or outer equipment or any part ~Oaf
C. Servide Dotrtawntal to Other CUOMOs. The
or system, the operation of mhich will be de
other Cust=WS, and w/ll discontinue alaetr
to operate such equipment or systems after ha
so dol no.
D. fraud. The Company say refuse ar discontfre
conditions upon his presisee are much as
company.
SFtMAM OF St//tY AiD I It
A. Shortage and inwruptlon. The Cappamy sit
cam nmeus and suf f i e t eft supply of el ocul e
or interruption of delivery thereof. It
sufficient supply or freed= from irterruptie
The Catpemy wiil not be liana for interrupt
damage ateasioned thereby. Wanerer, dem the
prom 'see &War systema, I . , ;taw in
reactis from or is occasiaced by eameme atim
to suspend temporarily the delivery of eleew
I , is to 14 systme retia of arty
*Atxmers of "W Company, bet tie Cepa
reimetitxtte delivery of eiaetrte anergy.
0. Temporary Swep"Wiea for repairs. The tamp my,
Purpose of mmrlty repairs or i a to i
temporarily tie deliver► of eloetricity. Iw N
u ei revstawNs will parsi t, mel l l be g1 van to t
or I sill bo. a as rapidly as
so^ tfame as roll eared tie least iwommrewienee
C. . lyparttawmant of Smppty Oaring Tien of SMrtow
Ow Ceopamy will appmrtfom its ovallablo s
a ~f sad or di rooted by the regulatory ao
atmde eclat, dW Campasy mei l l apemen ew tine
opaltoble under cooditieme tt+ provailtag.
(Conti*
t71103cm
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SwVwn COfwnia Edison
t>tss neaim�e eiv.e>rrenhae► nhesw..� eale.r.a s+rie
witim
FAC i L I T I ES M WS TOMER' S PRQI I SES
A. Custraat Aaspensibt+lity for rhes ff"l Mit. The shall, Re his caw solo rtak area
espGMOI�t ft mfsblp tmstallr MGM % aM teat 1n poll sed safe condition all olectric&L
shear 111MOOS meNh1nary,s, acs apWattee of any NAd M ahWaeter sAieh easy be re"irod far:
(1) reeaeiviwg oleetriC energy free the ifnee of the Company, r"Iffless of the locatiowof
the transforneers, meters, or other OWIPOsnt of Clic Campanys and (2) &wlying ane uttltzfrq
such energy. including all necessary protective ogeI~* and suitable Browing therefor.
The cvsto> shell also temewit and dellver and be solely responsible for the transmfsatm
OW delivery of all oleetrfe energy owe or through customer's afros and puipmenL.
regsrdloss of the plain +there such electric sn*M may be tra"formed or motor".
The Company shell not be responsible for any loss or dame" occasioned or caused by tto
negligence, went of proper care or wtengful act of tM custamor or of sees of his agents,
emrley000, or licensees an the part of the custamer to leatallfng,, maintaining, using,
operating, or lnterferfng with any sach wires, lines, machinery. or apparatus.
e. Aight. of Amoss. The Caspamy shall, at ail times, heves the right of tngeess and egress,
fres a antonavls presilsM at all ressonable hetare for amu pmrpssea reasonably connected
wl ift Mss foam shl of of el ectri c wWJy and the exercise of any and all r i glhts secured to It
by lam or tdheae rules.
PEM TESTS AND AW ATMW OF 611.43 iM 01E1Q EJIIiM
A. Toots.
1. Prior to installation. Every meter will be tested at or prlar to the time of
fnsUliation, and no sorter will be placed in Service if fared to resister earn them
one percent fast er me percent slam.
2. On Custoww Request. A aastoM may, on notice of net lora then one week, re"Iro ter
Company to test time peter for his service.
No chirp will be made for wah a test, bre, should a customer demand a test within
tis ma tlM after fnstallatfen ar mere than Once iw tis mmeNs, he will be required to
pay for tar most of the test male" Iles me nor to found to reg f star note than two
perca % fast or an pertemt stem.
A crstomnsr doll hwve the riglht
ar f m tie presence of
The revel tin d t. test will be
of tar cpmpletiem of dw teat.
6. Ad j"Onat of mile far 14tsr Error.
to ra"fre !the CO»Mhy to Conduct the test in his
an *spirt or other representative a0efated by his.
furnf sled is rte costo er si thi n a reasonable time
1. Feet Mecum. Idhsmt hdem test. Mi�rr Aube is found to be registering sere than be
peareent feat. Ma �empawy refit re>hnd to Me cwtamw the amovat of the ~Oar"
breed as eerr+eeted meter reMings for Ne prsc"irq $is metntths, subject to tho
precis/ems of 'aregrso ♦ hereat.
ill l ftm
( Continued)
MX'ACWSOUdWn COWOffft RAMP
zw simwm aaa *mew nsammaru. Ca4wr i i ria
IytEs
mffV TESTS AND ADJOANOT 0/ BILLS FCA MFTQ EMM
(Continued)
S. Adjustments to Bills for Mater Error (Continued).
2. slow Mors. Wwo, upon test, any motor is round to be registering owe than trio
` Pattonslow, the Company may bill the evstamor for the amount of the undercharge
based an corrected meter readings for the preceding three months, subject to the
provisions of Paragraph • hereof.
3. Monreglstatine !*tars. ~, upon test, any motor is fouhd to be nenrplstNtnq, ted
Campewy may bill the Cwtommr for the estimate of electricity consumed but not
registered for a period of t1w months, subject to the Provisions of Paragraph s
hereof.
1 Bills for this purpose will be eatimated tram the custawr's prior use, the customer's
wAbsoMwot vN correctly motored, the Company's experience with other customers of the
same class, and the gsnsrel characteristics of the customer's operations.
e. Cenral. Men it is found that the error in a now is dun to cauaea, the datr of
wMch can be reliably established, the overcharge or the undercharge will be computed
back to but net beyond that date.
1
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PURCH"Re By
SOUTHZRN CALIPOAKIA IMISON C(WANT
FROK QUALIFYING FACILITIE8
DISPUTM SAWORZ
CALIFORMIA PUBLIC UTILITIBB CONKISSION
AND SJMNrL= WITH
DIVISIOU OF IRAT<PAYRR ADVOCATBB
Beowawe Geothermal Power Company
Del Ranch, Limited
Elmore, Limited
Geo East Mesa Limited Partnership 1
Geo East Mesa Limited Partnership 2
Geo East Mesa Limited Partnership 3
Harbor Cogeneration Company
Kern River Cogeneration Company
Leathers Limited Partnership
Midway -Sunset Cogeneration Company
Sycamore Cogeneration Company
Vulcan BN Geothermal Power Company
Watson Cogeneration Company
LW931740.044