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Resolution No. 6365 , ~ I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . . . RESOLUTION NO. 6365 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE POWER SALES AGREEMENT (VERNON CONTRACT NO. 93-10-03) BY AND BETWEEN SAN DIEGO GAS & ELECTRIC COMPANY AND THE CITY OF VERNON WHEREAS, the City of Vernon receives power from the Southern California Edison Company pursuant to tariff schedules approved by the Federal Energy Regulatory Commission ("FERC"); and WHEREAS, FERC approved tariff schedules provide at Special Condition 12 that Vernon may purchase power from other suppliers in accordance with certain prescribed notice provisions; and WHEREAS, SDG&E is engaged in the generation, transmission, sale and purchase of electric power and energy; and WHEREAS, the City of Vernon has provided notice to Edison that it intends to purchase capacity and associated energy as a nonintegrated resource; and WHEREAS, the City of Vernon believes that. the SDG&E is able to meet its needs and concerns in a prudent and reliable manner; and WHEREAS, the City Council of the City of Vernon adopted Resolution No. 6332 on October 20, 1993, approving and authorizing the execution of a Power Sales Agreement with San Diego Gas & Electric Company; and WHEREAS, the City council of the City of Vernon and SDG&E wish to enter into an Amendment to the original Power Sales Agreement dated October 27, 1993, to alleviate the concerns of the . ... . . . . 1 staff of the Federal Energy Regulatory Commission respecting some 2 components of the Power Sales Agreement. 3 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 4 CITY OF VERNON AS FOLLOWS: 5 6 SECTION 1: The City council of the City of Vernon does hereby find and determine that the recitals contained hereinabove 7 are true and correct. 8 SECTION 2: The City Council of the City of Vernon hereby 9 approves the Amendment to the Power Sales Agreement (Vernon 10 Contract No. 93-10-03), a copy of which has been presented to the 11 City Council concurrently with this resolution, and the City 12 13 14 Council hereby orders said Amendment to be received and filed by the City Clerk. SECTION 3: The City Council of the City of Vernon hereby 15 authorizes the Mayor and City Clerk to execute said Amendment for, 16 and on behalf of, the City of Vernon. 17 SECTION 4: The City Clerk of the City of Vernon shall 18 certify to the passage of this resolution and thereupon and 19 thereafter the same shall be in full force and effect. 20 APPROVED AND ADOPTED this 7th day of December 1993. ::;d? . " /~ ""'-:__.4", A' ./f"': L ~_,.~r,""/G.""'V#v~ ~:; (~~~IS C. MAL 21 22 23 24 25 26 ATTE~. /~ BRUCE V. ~~" MALKENHORST, City Clerk 27 28 -2- . ... , . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, city Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 6365, was duly adopted by the city Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, December 7. 1993, and thereafter was duly signed by /~ the Mayor of the City of Vernon. ~ BRUCE V. MALKENHORST, City Clerk (SEAL) -3- .....e--. ....~.~ 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1 \,'~ {;;S~S AMENDMENT TO THE POWER SALES AGREEMENT BETWEEN SAN DIEGO GAS & ELECTRIC AND CITY OF VERNON 1. PARTIES: The Parties of this Amendment to the Power Sales Agreement dated October 27, 1993 are San Diego Gas & Electric Company (San Diego), a California corporation and City of Vernon (Vernon), a municipal corporation of the State of California, hereinafter sometimes referred to individually as "Party" and collectively as "Parties". 2. AGREEMENT: The Parties agree as follows: 3. AMENDMENT TO THE POWER SALES AGREEMENT: 3.1 Section 7.3 of the Power Sales Agreement shall be deleted in its entirety and a new Section 7.3 shall be added as follows: 7.3 If curtailments of capacity and associated energy are caused by San Diego's inability to deliver such capacity and associated energy to Vernon at Sylmar ~ during any period of the month; 1) a pro rata reduction in the monthly demand charge, pursuant to Section 7.2, will be made, and ii) Vernon will not be billed for that amount of associated energy which is not delivered by San Diego. 3.2 Section 7.4 of the Power Sales Agreement shall be deleted in its entirety and a new Section 7.4 shall be added as follows: 7.4 If Vernon is unable to receive the full amount of associated energy scheduled during any hour due to Uncontrollable Forces, the amount of associated energy Vernon is obligated to take and pay for shall be reduced by the amount of such energy not delivered or received unless otherwise agreed between the Parties. Uncontrollable Forces shall not reduce Vernon's obligation to pay for capacity made available by San Diego. 111 ' ~ . ,.,', ;~j~j~~~~illl~~~~R' 1 4. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SIGNATURE CLAUSE: The signatories hereto represent that they have been ( to enter into this Amendment to the Power Sales Agreement on behalf of the whom they sign. Executed as o~eJ....Q<-l~, 1993. SAN DIEGO GAS & ELECTRIC COMPANY BY ~1.~ Edwin A. Guiles Senior Vice President, Energy Supply CITY OF VERNON BY~~~~. LeOn C. Malburg, May r APPROVED AS TO FORM: BY: ~ ~,\7~ David B. Brearley, City attorney / / / / / / / / / / / / / ATTEST:. ~ BY~ ~. Bruce V. Malkenhorst, City