Resolution No. 6667
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RESOLUTION NO. 6667
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A 1995 SETTLEMENT AGREEMENT BETWEEN SOUTHERN
CALIFORNIA EDISON COMPANY AND CERTAIN
TRANSMISSION SERVICE CUSTOMERS RELATING TO
SCHEDULING AND DISPATCHING CHARGES
WHEREAS, Southern California Edison Company ("SCE") filed
before the Federal Energy Regulatory Commission a proceeding in
Docket No. ER95-139, proposing to increase the charges for
scheduling and dispatching services, and the City of Vernon, as
well as other customers, have filed interventions and protests to
said filing; and
WHEREAS, SCE and the cities of Anaheim, Azusa, Banning,
Colton, Riverside and Vernon as well as M-S-R Public Power Agency
(collectively "Transmission Service customers") have been
negotiating the settlement of scheduling and dispatching service
issues in FERC Docket No. ER95-139; and
WHEREAS, the City of Vernon, as one of the Transmission
Service Customers, desires to enter into the 1995 Settlement
Agreement between SCE and certain Transmission Service Customers
Relating to Scheduling and Dispatching Charges to resolve the
disputed issues.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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
are true and correct.
SECTION 2: The City Council of the city of Vernon hereby
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I approves the 1995 Settlement Agreement Between SCE and certain
2 Transmission Service Customers Relating to Scheduling and
3 Dispatching Charges, a copy of which has been presented to the
4 City Council concurrently with this resolution, and the City
5 Council hereby orders said Agreement to be received and filed by
6 the City Clerk.
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SECTION 3: The city Council of the city of Vernon hereby
8 authorizes the Mayor and the city Clerk to execute said Agreement
9 for, and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
II certify ~o the passage of this resolution and thereupon and
12 thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 1st day of August, 1995.
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ATT,E E~S .
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BRUCE V. MALKENHORST,
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I, BRUCE V. MALKENHORST, city Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6667, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, August 1. 1995, and thereafter was duly signed by the
Mayor of the City of Vernon.
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
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BRUCE V. MALKENHORST, City
-3-
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~..)
1995 SETTLEMENT AGREEMENT BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
CERTAIN TRANSl\1ISSION SERVICE CUSTOMERS
RELATING TO SCHEDULING AND
DISPATCHING CHARGES
7'
CTl/OS/95/PO/OS6801119/PLBADSlROA _1.WPI35866.1
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<". ,'.
TABLE OF CONTENTS
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1 PARTIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
2 RECITAI1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
2.1 Federal Regulation of Edison ................ . . . . . . . . . . .. 1
2.2 Proceedings Pending Before FERC Concerning Scheduling and
Dispatching Charges ................................. 2
2.3 Settlement Discussions ................................ 3
3 AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
3.1 Revisions to the November 1, 1994 Filing . . . . . . . . . . . . . . . . . . .. 4
3.2 Compliance Methodology .............................. 4
3.3 Other Cost of Service Elements. . . . . . . . . . . . . . . . . . . . . . . . . .. 4
3.4 Revised Unit Charge ............... '. . . . . . . . . . . . . . . . .. 5
3.5 Payment of Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
3.6 Revised Cost of Service ............................... 5
4 TERM OF AGREEMENT .................................. 6
5 REGULATORY APPROVAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
5.1 Filing of Settlement at FERC . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
5.2 Conditioned Upon FERC Approval ........................ 6
6 PROHIBmON AGAINST LITIGA nON . . . . . . . . . . . . . . . . . . . . . . . .. 7
6.1 No Litigation in Courts or Governmental Agencies . . . . . . . . . . . . . .. 7
6.2 Waiver of Unknown Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7
6.3 Acknowledgment of California Code ....................... 8
6.4 Consequences of Wavier .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8
7 NONPRECEDENT AND RESERV A nON OF RIGHTS ............... 8
7.1 No Precedent in Any Proceeding or Litigation . . . . . . . . . . . . . . . . .. 8
7.2 Reservation of Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9
8 PREVIOUS COMM{JNICA nONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
9 NONSEVERABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
10 COSTS OF FILING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 NONWAIVER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
12 GOVERNING LAW AND REGULATIONS ........ . . . . . . . . . . . . . . . 11
111/05f95lPOU0S6801119/PLEADSlROA _1.WPI35866.1
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13 CONSTRUCTION OF AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
14 CAPTIONS AND HEADINGS ............................... 11
15 NUMBER OF ORIGINALS ................................. 11
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fJ7/OS/9SIPOUOS6801119/PLEADSlROA_1.WPI3S866.1
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1995 SETTLEMENT AGREEMENT BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
CERTAIN TRANSMISSION SERVICE CUSTOMERS
RELATING TO SCHEDULING AND
DISPATCHING CHARGES
1 PARTIES
The parties to this Settlement Agreement are Southern California Edison Company
("Edison"), a California corporation; the Cities of Anaheim, Azusa, Banning, Colton, and
Riverside, California ("Cities"), California municipal corporations; the City of Vernon,
California ("Vernon"), another California municipal corporation; and M-S-R Public Power
Agency ("M-S-R"), a joint powers agency created under California law. Where appropriate,
Cities, Vernon, and M...S-R will be referred to collectively as the Transmission Service
Customers.
2 RECITALS
2.1 Federal Regulation of Edison
Edison is an investor-owned public utility doing business in the State of California
and renders transmission services for other utilities doing business within and outside of
California. Edison provides transmission services pursuant to provisions of the Federal
Power Act ("FPA "), as administered by the Federal Energy Regulatory Commission
("FERC").
07/OS/9S/POUOS6801119/PLFADSlROA _1.WPI3S866.1
2.2 Proceedings Pending Before FERC Concerning Scheduling and
Dispatching Charges
Presently pending before the FERC is a proceeding in Docket No. ER95-139, in
which Edison has proposed to increase the charges for scheduling and dispatching services
("S&D Charges") which Edison renders pursuant to a number of Transmission Service
Agreements with 21 wholesale customers, including the Transmission Service Customers.
The S&D Charges are intended to reimburse Edison for the costs associated with the
scheduling and dispatching of generating and transmission resources required to serve the
needs of the Transmission Service Customers, among others.
On November 1, 1994, pursuant to the provisions of the transmission service
agreements, Edison submitted its annual revisions of the S&D Charges, to be effective
commencing on January 1, 1995. The proposed S&D Charges were based on budgeted
investment and expenses for 1995. The exact rate for the services rendered was expressed in
terms of a daily use charge of $9.49 per scheduling unit. Edison relied upon the
methodology approved by the FERC in Opinion No. 341 (50 FERC '61,138 (1990))
("Compliance Methodology") for computing its daily use charge. The combined budgeted
costs amounted to a total of $4,109,906.
Following the issuance by the FERC of a notice of the filing, the Transmission
Service Customers filed interventions and protests to Edison's filing. By an order issued on
December 30, 1994 (69 FERC '61,440), the FERC accepted for filing Edison's proposed
revisions to the S&D Charges, suspended their effectiveness for one day, granted the
Transmission Service Customers leave to intervene, and established hearing procedures to
investigate the justness and reasonableness of the proposed increase in rates. In keeping with
the order of the FERC, Edison, the Transmission Wholesale Customers, and the Commission
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Trial Staff appeared before the administrative law judge designated to preside over the
evidentiary proceeding where the parties agreed upon a procedural schedule togovem any
evidentiary presentations.
2.3 Settlement Discussions
In an attempt to avoid the burden of an evidentiary proceeding, Edison, the
Transmission Service Customers, and the Commission Staff exchanged information and
explored the possibility of resolving their differences through settlement of the outstanding
issues which were identified as:
(1) the inclusion of the cost for personal computers in the Power Resource
Scheduling Section and the Energy Control Center (tlECCtI),
(2) the annual revenue requirement for investment in the ECC Building,
(3) the accounting treatment of payments received from third parties for
scheduling and dispatching services,
(4) the inclusion of certain costs associated with the dispatching of the Palo
Verde Nuclear Generating Station, and
(5) the inclusion of certain costs of dispatching charges paid to the Los Angeles
Department of Water and Power (tlLADwptI) for the operation of the Pacific
Direct Current Intertie at the Sylmar station.
The negotiations have resulted in a settlement by Edison with the Transmission Service
Customers which is embodied in the terms and conditions of this Settlement Agreement.
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07/OS/9SIPOU0568OIl19/PLEADSIROA_1.WPI3S866.1
3 AGREEMENT
3.1 Revisions to the November 1, 1994 Filing
For the purpose of resolving this proceeding, Edison will revise its proposed rates in
the following manner:
(1) Edison will credit against FERC Account Nos. 556, 561 and 581, which are
used in deriving S&D charges, payments estimated to be made by third
parties for scheduling and dispatching costs;
(2) Edison will exclude any costs associated with the dispatching the capacity and
energy associated with the Palo Verde Nuclear Generating Station;
(3) Edison will exclude from the S&D Charges the annual revenue requirement
for the ECC Building;
(4) Edison will exclude the costs attributable to the personal computers used at
the ECC; and
(5) Edison will exclude the costs attributable to the personal computers used by
personnel in the Power Resource Scheduling Section.
3.2 Compliance Methodology
It is noted that the Compliance Methodology refers to FPC (FERC) Accounts 561,
566 and 581~ This reference should instead be to FPC (FERC) Accounts 556, 561 and 581.
3.3 Other Cost of Service Elements
With the exception of the items described in Section 3.1, Edison shall recover the
other components which were used to derive the budgeted costs for the 1995 S&D Charges,
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including 100% of the dispatching charges paid to LADWP for Pacific Direct Current
operations at the Sylmar station.
3.4 Revised Unit Charge
Both Edison and the Transmission Service Customers agree that application of the
adjustments described in Section 3.1 results in a budgeted cost of $3,577,035 for the
scheduling and dispatching activities for 1995, which produces a rate of $8.26 per scheduling
unit per day.
3.5 Payment of Refunds
Edison shall, within 30 days of the acceptance and approval of this Settlement
Agreement by the FERC, without any modifications or conditions unacceptable to any
signatory to this Settlement Agreement, refund all amounts collected in excess of the revised
charge per scheduling unit per day, with interest computed in accordance with section 35.19a
of the FERC's regulations (18 C.F.R. ~35.19a (1995)).
3.6 Revised Cost of Service
Edison shall reflect the adjustments agreed upon in Section 3.1 in a revised cost of
service which is attached hereto as Appendix A. Such appendix revises the cost of service
which was included as Appendix B in the initial filing instituting Docket No. ER95-139-000.
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4 TERM OF AGREEMENT
This Settlement Agreement shall become effective, following execution by the parties
hereto, on the date it is permitted to become effective by the FERC, and shall remain in
effect unless terminated in accordance with Section 5.2.
5 REGULATORY APPROVAL
5.1 Filing of Settlement at FERC
Edison shall file this Settlement Agreement with the FERC, together with any
supporting documents required by the rules of practice and procedure of the FERC, and
request that the FERC approve this Settlement Agreement as being just and reasonable and in
the public interest. All parties shall use their best reasonable efforts to obtain approval of the
FERC for such filing.
5.2 Conditioned Upon FERC Approval
In the event that FERC does not by order approve this Agreement without change or
condition unacceptable to any party, this Agreement shall be deemed withdrawn by all parties
and of no effect. Edison and each of the Transmission Service Customers shall determine
and notify the other parties, within 15 days following any FERC order approving this
Settlement Agreement subject to change or condition (including, without limitation, an initial
FERC order, an order on rehearing, or an order on remand), as to whether any such change
or condition is unacceptable to that party. A failure to notify will be the equivalent of a
notification of acceptance.
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6 PROHIBITION AGAINST LITIGATION
6.1 No Litigation in Courts or Governmental Agencies
Neither Edison nor any of the Transmission Service Customers shall institute,
maintain, or prosecute any action or any claim or contention in any action under the FPA,
the Atomic Energy Act, at law or in equity against each other, the Nuclear Regulatory
Commission, or the FERC, or any proceeding or other claim for damages or other relief
against each other, the Nuclear Regulatory Commission, or the FERC, based in whole or in
part on the issues settled in this Settlement Agreement or the actions agreed upon by Edison
and the Transmission Service Customers. This prohibition includes, but is not limited to a
suit or action under any laws, federal or state, including antitrust provisions, price
discrimination, or related laws, challenging the terms and conditions of this Settlement
Agreement or the rates derived from this Settlement Agreement.
6.2 Waiver of Unknown Claims
Edison and the Transmission Service Customers understand and intend that the
prohibition described in Section 6.1 extends to claims which either. Edison or the
Transmission Service Customers do not know or suspect to exist in either's favor at the time
of executing this Settlement Agreement, which, if known by either party, would have
materially affected its settlement with the other party. In this regard, Edison and the
Transmission Service Customers hereby waive application of California Civil Code Section
1542.
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07/OSI95/POUOS6801119/PLEADSlROA _1.WPI35866.1
6.3 Acknowledgment of California Code
Edison and the Transmission Service Customers have read and understand the
following provisions of California Civil Code Section 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 must
have materially affected his settlement with the debtor.
6.4 Consequences of Wavier
Edison and the Transmission Service Customers understand and acknowledge that the
significance and 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
Section 6.2, they will not be able to make any claim for those damages. Furthermore, Edison
and the Transmission Service Customers acknowledge that they intend these consequences
even as to claims for damages that may exist as of the date of this Settlement Agreement but
which they do not know exist, and which, if known, would materially affect their decision to
execute this Settlement Agreement, regardless of whether their lack of knowledge is the
result of ignorance, oversight, error, negligence, or any other cause.
7 NONPRECEDENT AND RESERVATION OF RIGHTS
7.1 No Precedent in Any Proceeding or Litigation
None of the principles or the methodologies underlying this Settlement Agreement
shall be deemed as binding precedent in any proceeding or litigation except to the extent
specifically stated herein. Moreover, by entering this Settlement Agreement, Edison and the
Transmission Service Customers do not expressly or implicitly concede that the principles or
the methodologies underlying this Settlement Agreement are correct or represent proper
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ratemaking principles. Edison and the Transmission Service Customers have assented to the
principles and methodologies underlying this Settlement Agreement in order to arrive at the
settlement embodied in this agreement and its appendix. Edison and the Transmission
Service Customers expressly reserve the right to advocate in current and future proceedings
(except where participation in such proceedings or such advocacy is prohibited elsewhere in
this Settlement Agreement) principles, positions, and methodologies which may be different
than those underlying this Settlement Agreement, and Edison and the Transmission Service
Customers expressly declare that this Settlement Agreement should not be construed as a
precedent for or against either of them in such advocacy.
7.2 Reservation of Rights
Edison and the Transmission Service Customers agree that nothing provided in this
Settlement Agreement, including its appendix, shall be construed as a waiver of any claim or
right to seek, on the basis of either law or equity, before any judicial, administrative, or
governmental forum or before any arbitrator or arbitration panel the modification,
amendment, extension, cancellation, or termination of any other tariff, rate schedule, or
contract between them. Except as specifically set forth herein, Edison and the Transmission
Service Customers agree that the fact of having entered into this Settlement Agreement and
having complied with its terms and conditions shall not in any way alter, amend, change or
terminate any such right or claim or provide any defense thereto. Further, Edison and the
Transmission Service Customers agree that the execution of this Settlement Agreement, shall
not be introduced as evidence or used for any purpose in any judicial, administrative, or
governmental forum or before any arbitrator or arbitration panel, except to enforce the terms
and conditions of this Settlement Agreement.
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8 PREVIOUS COMMUNICATIONS
This Settlement Agreement contains the entire agreement and understanding between
Edison and the Transmission Service Customers as to the subject matter of this Settlement
Agreement, and supersedes all prior agreements, commitments, representations, and
discussions between Edison and the Transmission Service Customers.
9 NONSEVERABILITY
Edison and the Transmission Service Customers understand and agree that this
Settlement Agreement is subject to each and every condition set forth herein, including
acceptance of this Settlement Agreement by the FERC in its entirety and without change or
condition unsatisfactory to either Edison or the Transmission Service Customers, and that
each term of this Settlement Agreement is in consideration and support of every other term.
10 COSTS OF FILING
Edison shall pay the filing fees, if any, required as a result of the filing of this
Settlement Agreement.
11 NONWAIVER
The failure of either Edison or the Transmission Service Customers to insist promptly
in anyone or more instances upon strict performance of any provision of this Settlement
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.
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12 GOVERNING LAW AND REGULATIONS
This Settlement 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 FPA, 16 U.S.C. ~~791a-825r.
13 CONSTRUCTION OF AGREEMENT
Ambiguities or uncertainties in the wording of this Settlement Agreement shall not be
construed for or against either Edison or the Transmission Service Customers, but shall be
construed in a manner that most accurately reflects the intent of Edison' and the Transmission
Service Customers, as expressed herein, when this Settlement Agreement was executed and
is consistent with the nature of the rights and obligations of Edison or the Transmission
Service Customers with respect to the matter being construed.
14 CAPTIONS AND HEADINGS
All captions and headings appearing in this Settlement Agreement are inserted to
facilitate reference and shall not govern the interpretations hereof.
15 NUMBER OF ORIGINALS
This Settlement Agreement is executed in eight counterparts, each of which shall be
deemed to be an original.
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IN WITNESS WHEREOF, the parties execute this Settlement Agreement as of the
~daYOf~1995.
SOUTHERN CALIFORNIA EDISON-COMPANY
APPROVED
, BRYANT C. DANNER
Senior Vice President
and General Counsel
By ~ry.~
AttorneY
7( ,\ 19C? r-
By 4-~~
Ronald Daniels
Vice President
CITY OF ANAHEIM, CALIFORNIA
By
CITY OF AZUSA, CALIFORNIA
By
CITY OF BANNING, CALIFORNIA
By
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7110195/POLt1>56801119/PLEADSIROA_I.WPI35866.1
IN WITNESS WHEREOF. the parties execute this Settlement Agreement as of the
day of
1995.
SOUTHERN CALIFORNIA EDISON COMPANY
By
Ronald Daniels
Vice President
APPROVED AS TO FORM:
JACK L. WHITE. CITY ATTORNEY
8Y~~ 11-3llqr
LUC1NA LEA MOSES
ASSISTANT CITY ATTORNEY
CITY OF ANAHEIM, CALIFORNIA
ATTEST:
~~;s~,
Clty Clerk
CITY OF AZUSA, CALIFORNIA
By
By
CITY OF BANNING, CALIFORNIA
By
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711o.9Sll'OLA)S680119lPLEADSlROA_I.WPI3S866.1
IN WITNESS WHEREOF, the parties execute this Settlement Agreement as of the
day of 1995.
SOUTHERN CALIFORNIA EDISON COMPANY
By
Ronald Daniels
Vice President
CITY OF ANAHEIM, CALIFORNIA
By
CITY OF AZUSA, CALIFORNIA
By .fhA ::J" ~~
CITY OF BANNING, CALIFORNIA
By
12 7/JOI9S1POl.Al568OtJ J 9/PLEADSlROA_I.WPI35866.1
IN WITNESS WHEREOF, the parties execute this Settlement Agreement as of the
day of
1995.
SOUTHERN CALIFORNIA EDISON COMPANY
By
Ronald Daniels
Vice President
CITY OF ANAHEIM, CALIFORNIA
By
CITY OF AZUSA, CALIFORNIA
By
CITY OF BANNING, CALIFORNIA
OJf~
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By
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7/1019S1POUlS68OfI19/PLEADSIROA_I.WPI3S866.1
A~/~
BRUCE V. MALKENHOR8T, City Clerk
APPRO~D AS TO FORM: 2
~~ ~g~ AJrorney
'Ni'I_II!f.-mQ~J<~~-)~~J:Slmi1l.~~.""no_7Y.:n:..~"""n'......,.,."",---...-=..t'flll~.~;;W.!'>n~~~
CITY OF COLTON, CALIFORNIA
By
CITY OF RIVERSIDE, CALIFORNIA
By
CITY OF VERNON, CALIFORNIA
BY~~~
/'18 C. MALB _G, Mayor
M-S-R PUBLIC POWER AGENCY
By
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CITY OF COLTON, CALIFORNIA
By
4~b(~~~
George v.' FuIP~~~
Mayor
CITY OF RIVERSIDE, CALIFORNIA
By
CITY OF VERNON, CALIFORNIA
By
M-S-R PUBLIC POWER AGENCY
By
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CITY OF COLTON, CALIFORNIA
By
Dated September 20, 1995
CITYOF RIVERSIDE, CALIFORNIA
APPROVED AS TO FORM
-~b;Ara ~ 8jZ- ,By'
AS$T. CITY ATlQRNEY
Attest:
CITY OF VERNON, CALIFORN
By
M-S-R PUBLIC FOWER AGENCY
By
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A~~
BRUCE V. ~~LKENHORST,
APPROVED AS TO FORM:
D~~ B~ARL~~1i'rney
CITY OF COLTON; CALIFORNIA
By
CITY OF RIVERSIDE, CALIFORNIA
By
CITY OF VERNON, CALIFORNIA
.) .g
_ . ,RG, May
M-S-R PUBLIC POWER AGENCY
By
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CITY OF COLTON. CALIFORNIA
By
CITY OF RIVERSIDE. CALIFORNIA
By
, CITY OF VERNON. CALIFORNIA
By
M-S-R PUBLIC POWER AGENCY
By ~~'r
". General Manager
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..,'Iilto)'r1"~IIa)filInJilUIl.l2ill'l-"'h~O~..u..~~_
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APPENDIX A
Cost of Service
(This appendix revises the cost of service included as Appendix B in the initial filing
instituting Docket No. ER95-139-000)
1995 SCHEDULING AND DISPAT8HING FEE DETERMINATION.
SUPPORTING BUDGETED EXPENSES DATA
The following expenses are to be included in the
determination of the scheduling and dispatching fee for 1995:
(1) Annlicable Exnen~es for ECC Activities ner FERC Account
561.000 :
o Expenses budgeted for Functions 8925, 8926 and 8931 that
includes the credits for dispatching.
o Use a ratio of 32% to determine the applicable expenses
for Account 561.000 pursuant to Section 2.A. of Appendix
B of the Integrated Operation Agreement.
o Expenses for DC line dispatching (100%) ;
Calculation:
For 1995, FERC Account 561 (8925, 8926,8931)
- DC line dispatching (DWP 8926)
= ECC Activity Expenses for allocation
x percent Allocation
= Applicable ECC Activities Expenses
+ DC line dispatching (DWP8926)
$2,052,754
278,200
$1,774,554
32%
$ 567,857
278,200
Total (1)
S 846.057
(2) Annlicable Power Resource Schedulino (PRS) Section Exnenses:
(a) Labor for pre-scheduling activities
Includes all wages involved in the pre-scheduling
activities:
Personnel
Manager
100%
50%
$436,700
$ 48,076
For 1995, Total Labor Expenses = $484,776
1
1995 SCHEDULING AND DI'SPAT<::HING FEE DETERMINATION
SUPPORTING BUDGETED EXPENSES DATA
(2) Aoolicable Power Resource Schedulina (PRS) Section Exoenses:
( Continued)
(b) Non-Labor PRS group expenses such as facility carrying
charges for ECCbuilding, phones, stationary, dispatching
model(WESCOUGAR), development and support of other
software plus incidental costs:
Number of'PRS employe~s( including manager) = 9
Miscellaneous expenses include budgeted annual $ for
supporting/developing software plus consulting services
for the PRS Scheduling/Dispatch function: = $ 106,900
PRS Budgeted stationary/phone annual expenses:
Total expense(Sys. Operation) = $95,548 for 135 people.
PRS portion = $95,548 x ( 9/135) people = $ 5,662
Miscell. SID expenses budgeted
Budgeted O&M for WESCOUGAR ,software
PRS stationary/phone expenses
PRS Non-Labor Total
$ 106,900
$ 72,100
5 5,662
5184,662
(c) Expenses Summary for PRS Section :
Total (2)
$ 484,776
S 184.662
S 669,438
Labor
Non-Labor
(3) Exoenses for Load Disoatchina Comouter System
(a) Ratio:
The SCheduling/Dispatching applicable expenses for the Power
Management System (PMS) is determined by a ratio of the Load
Frequency Controllers (LFC) used for scheduling/dispatching to
the total number of installed LFCs and Remote Terminal Units
(RTUs) in service. As of October, 1994,
(A) Total number of LFCs used for
scheduling and dispatching 78
(B) Total number of LFCs+ RTUs installed 260
RATIO
(A) / (B)
30.00%
2
_., ...
1995 'SCHEDULING AND DISPATCHING .FEE DETERMINATION
SUPPORTING BUDGETED EXPENSES DATA
(3) Exoenses fOl; Load Disoat<;hina Comouter SVstem(Continued)
(b) Function Exoenses :
The expenses for the load dispatching computer system consist of
the following function expenses and the levelized capital cost of
the computer system.
Expenses
Function FERC Account S (OOO)
8914 561.000 1.1
8922 561.000 13.7
8923 163.400 154.7
8928 ]
8929 > 561.000 1,958.1 (PSC only)
.8930
8932 561.000 118.9
8969 935.000 40.4
8980 935.000 1,013.4
8984 184.700 15.7
Total s3.316.0
(c) Levelized Caoital Cost of Comout~r SYstem;
The levelized annual revenue requirements for the capital
costs of computer system is based on a 10-year life following
the installation. The annual carrying charge rate for the
capital cost is determined by the Treasurer I s Department each
year. The following is a summary of the capital costs for
the Computer System:
CAPITAL COSTS
YEAR
1985
1986
1987
1988
.1989
1990
1~91
1992
1993
1994
Total
( S )
$4,156,200
1,043,800
833,000
790,000
1,351,000
250,000
352,000
1,538,000
3,930,000
1,782,300
Annual Cost to be
ANNUAL COST
CARRYING RECOVERY
CHARGE PERIOD
24.99%
23.15
21. 81
21.14
22.80
22.40
22.40
21.10
20.30
19.40
recovered
1986-1995
1987-1996
1988-1997
1989-1998
1990-1999
1991-2000
1992-2001
1993-2002
1994-2003
1995-2004
in 1995
ANNUALIZED
COST (S)
$1,038,600
241,600
181,700
167,000
308,000
56,000-
78,800
324,500
797.800
361,800
S3.555.800
3
.
. .
1995 SCHEDULING AND DISPATCHING FEE DETERMINATION
SUPPORTING BUDGETED EXPENSES DATA
(d) Total AOQlicable Exoenses for
Load Disoatchina Comouter System
The total applicable expenses for 1995 for the Load
Dispatching Computer System are:
1. Function Expenses, from (b)
2. Total Annualized Costs, from (c)
$3,316,000
S3/555.800
$6,871,800
0.3000
$2,061,540
x
Sub-total
RATIO, from (a)
Total (3)
-----.-----
-.-------.-.-
4
.
, ..
TRANSMISSION SERVICE
DAILY CHARGE FOR SCHEDULING AND DISPATCHING SERVICES
Effective Januarv 1. 1995
1995 Edison audaet
A.
FPC Account 561 (System Control and Load Dispatching)
561 (Load Dispatching - Transmission)
581 (Load Dispatching ~ Distribution)
*.Includes $278,200 for DC line dispatching
B.Load Dispatching Computer System Expenses
o
$,2,052,754*
o ,
$ 6,871,800
1995 Budget for
Scheduling and
Disoatchina Services
1.portion of Accounts of 561 and 581
assignable to Account 561
32% of $1,774,554 + $278,200 for DC dispatching
$ 846,057
2.Power Resource Scheduling Section Function Expenses
assignable to Scheduling and Dispatching
3.portion of Load Dispatching Computer System Expenses
assignable to Scheduling and Dispatching
= 30.00% of $6,871,800
$ 669,438
S 2.061. 540
sub-total
$ 3,577,035
Total Number of Scheduling Unit-Days
(Including all Edison Resources and Interchanges)
433,081
Rate per Scheduling Unit per Day ( $3,577,035 / 433,081)
$ 8.26
.
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