Resolution No. 6535
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RESOLUTIQN NO. 6535
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A LETTER AGREEMENT PURSUANT TO SERVICE
SCHEDULE C OF THE WESTERN SYSTEMS POWER POOL
AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
THE SOUTHERN CALIFORNIA EDISON COMPANY
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WHEREAS, the City of Vernon receives power from the
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Southern California Edison Company (SCE) pursuant to tariff
schedules approved by the Federal Energy Regulatory Commission
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(FERC); and
WHEREAS, the FERC approved tariff schedule provides at
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Special Condition 12 that Vernon may purchase power from other
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suppliers in accordance with certain prescribed notice provisions;
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and
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WHEREAS, the City of Vernon has provided notice to SCE
that it intends to purchase capacity and associated energy as a
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nonintegrated resource; and
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WHEREAS, the City Council of the City of Vernon and the
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SCE desire to enter into a letter agreement that is in accordance
with Service Schedule C of the Western systems Power Pool
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Agreement to provide for the purChase of firm capacity and
22 associated energy from SCE from January 1, 1995 through December
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31, 1995.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the city of Vernon does
hereby find and determine that the recitals contained hereinabove
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SECTION 2: The City Council of the City of Vernon hereby
2 approves the Letter Agreement, a copy of which has been presented
3 to the City Council concurrently with this resolution, and the
4 City council hereby orders said Letter Agreement to be received
5 and filed by the City Clerk.
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SECTION 3: The City Council of the city of Vernon hereby
7 authorizes the Mayor and the City Clerk to execute said Letter
8 Agreement for, and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
10 certify to the passage of this resolution and thereupon and
11 thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 26th day of October, 1994.
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15 ATTE~
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16 BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6535, was duly adopted by the City Council of the
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City of Vernon at an adjourned regular meeting of the City Council
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duly held on Wednesday, October 26. 1994, and thereafter was duly
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signed by the Mayor of the City of Vernon.
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BRUCE V.
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12 (SEAL)
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SUPPORTING
DOCUMENTS
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Southern California Edison Company
. P. O. BOX 800
2244 WALNUT GROVE AVENUE
ROSEMEAD. CALIFORNIA 91770
October 26, 1994
Mr. Kenneth J. Dedario
Director of Light & Power
City of Vernon
4305 Santa Fe A venue
Vernon, CA 90058
Subject: 1995 WSPP Power Sale Agreement
Dear Mr. Dedario:
This letter constitutes an Agreement between the City of Vernon ("Vernon") and Southern
California Edison. Company ("Edison"), whereby Edison will deliver fIrm capacity and energy
for the term of the Agreement This Agreement is in accordance with Service Schedule C of the
Western Systems Power Pool Agreement ("WSPP").
Unless otherwise specifically modifIed by the terms and conditions identified in this letter, the
terms of the WSPP Agreement will apply.
1. Term
The effective date of this Agreement shall be January 1, 1995 through December 31,
1995.
2. Power Sale
2.1. Contract Capacity: 20 MW during the winter months of January through April and
November through December.
30 MW during the summer months of May through October.
2.2. Associated Energy: During the winter months, associated energy is to be scheduled
during weekdays except holidays for the time period beginning
0800 and continuing through 2159 at a maximum rate of delivery
of 20 MWh(h and at a minimum monthly energy take as follows,
Month
Minimum Energy
Take (MWh)
Janu
March
A til
November December
5,586
5,054
6,118
5,320
5,586 5,320
During the summer months, associated energy is to be scheduled
during weekdays except holidays for the time period beginning
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0900 and continuing through 2259 at a maximum rate of delivery
of 30 MWh/h and at a minimum monthly energy take as follows,
Month
Minimum Energy
Take (MWh)
Ma
June
Jul
October
8,778
8,778
7,980
9,177
7,980
8,778
Holidays are defined as: New Year's Day, Washington's Birthday, Memorial Day,
Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas.
When any holiday listed above falls on Sunday, the following Monday will be recognized as
a holiday.
3. Pricine
3.1. Capacity Charges: Vernon shall pay the following for contract capacity associated
with this Agreement:
Capacity Charge
($/kW-month)
2.00
Months
January, February, March, April,
November, December
3.00
4.00
Ma , June, October
July, August, September
3.2. Energy Charges:, Monthly minimum energy takes, as listed in Section 2, shall be
priced as follows,
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Season Time Period Energy Charge
(~/kWh)
Winter 0800 throu h 1659 2.30
Winter 1700throu h2159 2.40
Summer 0900 throu h 1259 2.35
Summer 1300 throu h 1859 2.40
Summer 1900 through 2259 2.35
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Associated energy scheduled in excess of the minimum monthly
energy takes listed in Section 2 shall be priced at a rate equal to
110% times Edison's average gas dispatch price for the month
multiplied by the following applicable heat rates,
Season Time Period Heat Rate
(MMBTU/MWh)
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Winter 0800 through 1659 9.6
Winter 1700 through 2159 10.0
Summer 0900 through 1259 9.8
Summer 1300 through 1859 10.0
Summer 1900 through 2259 9.8
3.3. Additional Charge: Vernon shall pay for any additional costs incurred beyond 1
mill/kWh attributable to environmental requirements imposed on
Edison including, but not limited to, carbon and BTU taxes or
reduction in Regional Clean Air Incentives Market (RECLAIM)
credits.
3.4. Waiver of Capacity & Energy Payment:
If curtailment of capacity and associated energy is caused by
Edison's inability to deliver such capacity and associated energy to
Vernon at the Point of Delivery during the time periods detailed in
Section 2.2, (i) a pro rata reduction in the monthly demand charge,
pursuant to Section 3.1, will be made and (ii) Vernon will not be
billed for that amount of associated energy not delivered by
Edison.
If Edison is unable to deliver or Vernon is unable to receive the full I
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. Such Uncontrollable Forces shall not include
economic consideration.
4. Point of Delivery
The point of delivery for Edison to deliver capacity and energy under this Agreement to
Vernon shall be the point where the 66kV facilities of Edison connect with the 66kV
facilities of Vernon at Vernon's city border, unless otherwise agreed by Edison's and
Vernon's dispatchers or schedulers.
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5. Schedulin2
On workdays mutually observed by Vernon and Edison, Vernon shall notify Edison of
associated energy schedules by 1000 on the workday prior to the day associated energy is to
be delivered. Except for uncontrollable forces, changes in preschedules shall be made no
later than thirty (30) minutes before the hour for which the change is to be effective.
6. Curtailm~nts
Edison's obligation to make available firm capacity and associated energy to Vernon as
detailed in Section 2 is a fIrm obligation, contingent only upon Uncontrollable Forces
(defIned in WSPP), and upon Edison's ability to serve first its own firm retail customer load
after fully committing all of its then available resources. In the event it becomes necessary
for Edison to curtail service to Vernon, Edison shall use its best efforts to notify Vernon as
far in advance of the curtailment as possible.
7. Billin2 and Payment
Edison shall render a bill to Vernon for charges on or before the twentieth (20th) day of each
calendar month for: (i) contract capacity and associated energy provided during the preceding
calendar month, and (ii) any additional charges as detailed in Section 3.
All bills rendered shall be paid by Vernon within twenty (20) days after receipt of the invoice
by Vernon. Beyond the provisions herein, all other billing provisions will be as prescribed in
the WSPP Agreement.
If conditions specified in this letter are satisfactory to Vernon, please indicate your approval by
signing the two originals of the Agreement and returning one original to Southern California
Edison.
Sincerely,
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~:;. John W. Ballance'744:~
Manager of System Operations
ACCEPTED:
CITY OF VERNON
By: - ~t~~~~j;f~~~.
Title: Mayor '-
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Bruce. V. Malkenhorst
City Clerk
Approve as to Form:
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David B. Brearley
City Attorney
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bee:
V.S. Budhraja
B.W. Frazee
L.E. Bissonette
D.G. Dayne
F. Mobasheri
L.A. Stikeleather
G. H. Brown
S.W. Hess
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