Resolution No. 6668
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RESOLUTION NO. 6668
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A SETTLEMENT AGREEMENT BETWEEN SOUTHERN
CALIFORNIA EDISON COMPANY AND CITY OF VERNON,
CALIFORNIA RELATING TO WHOLESALE INTERRUPTIBLE
SERVICE AND FERC DOCKET NO. ER81-177
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WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 6289 on July 6, 1993, which approved and authorized
the execution of an Edison-Vernon 1993 Settlement Agreement by and
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between the city of Vernon ("Vernon") and Southern California
Edison Company ("Edison"); and
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WHEREAS, Vernon and Edison were unable to reach agreement
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respecting the offering and implementation of interruptible
electric service in said 1993 Settlement Agreement to resolve the
remaining issue before the FERC in a proceeding in Docket No.
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ER81-177; and
WHEREAS, the Vernon and Edison desire to enter into a
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Settlement Agreement to resolve the dispute relating to wholesale
interruptible service in FERC Docket No. ER81-177.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the city of Vernon does
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hereby find and determine that the recitals contained hereinabove
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are true and correct.
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SECTION 2: The City council of the city of Vernon hereby
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approves the Settlement Agreement between Edison and Vernon,
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California Relating to Wholesale Interruptible Service and FERC
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Docket No. ER81-177, a copy of which has been presented to the
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City Council concurrently with this resolution, and the city
Council hereby orders said Agreement to be received and filed by
the City Clerk.
SECTION 3: The City council of the city of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Agreement
for, and on behalf of, the city of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
ATT~
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BRUCE V.
APPROVED AND ADOPTED this 1st day of August, 1995.
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MALKENHORST, City Clerk
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I STATE OF CALIFORNIA
2 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
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Resolution No. 6668, 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
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BRUCE V. MALKENHORST, City Clerk
Mayor of the City of Vernon.
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SETTLEMENT AGREEMENT BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
CITY OF VERNON, CALIFORNIA
RELATING TO WHOLESALE INTERRUPTffiLE SERVICE
AND FERC DOCKET NO. ER81-177
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TABLE OF CONTENTS
Page
1 PARTIES. . . . . . . . . . . . . . . . _. . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
2 RECITALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
2.1 Edison As Regulated By FERC . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
2.2 Edison As Regulated By CPUC . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
2.3 Proceedings Pending Before FERC In Docket No. ER81-177
Concerning Wholesale Interruptible Service ................... 2
2.4 Prior Settlements Between Edison And Wholesale Customers ........ 2
2.5 Settlement Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
3 AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
3.1 Wholesale Interruptible Service . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
3.1.1 Consistency Between Wholesale And Retail Interruptible
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
3.1.2 Interruptible Service Available To Qualifying Customers Of
Vernon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
3.1.3 Limitations On Ability Of End-User To Seek Alternative
Sources During Period Of Interruption . . . . . . . . . . . . . . . . .. 4
3.1.4 Limitation On Changes Resulting From Differences Between
Wholesale Rate Schedule And Currently Effective Retail Rate
Schedule .................................... 5
3.1. 5 Basis For Wholesale Interruptible Credit . . . . . . . . . . . . . . . .. 5
3.1.6 Credit For Wholesale Interruptible Service ............... 6
3.1.7 Documentation Of Requests For Interruptible Service . . . . . . . .. 7
3.1.8 Timing Of Notice Of Interruption . . . . . . . . . . . . . . . . . . . .. 7
3.1.9 Determination Of Loss Factor For Service To End-User . . . . . .. 9
3.2 Mutual Waiver Of Right To Seek Rate Changes. . . . . . . . . . . . . . . .. 9
3.2.1 Conforming Rate Schedule IR -1. 0 to Changes In Retail Rate
Schedule .................................... 9
3.2.2 Prior Moratorium Provisions . . . . . . . . . . . . . . . . . . . . . . . . 10
3.3 Conditions Governing Termination Of Wholesale Interruptible Service . .. 10
3.3.1 Five Year Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.3.2 Cancellation Or Termination Of Rate Schedule 1-6 Without
Replacement ................................. 10
3.3.3 Cancellation Or Termination Of Rate Schedule 1-6 With
Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.3.4 Right Of Vernon To Terminate Or Cancel Because Of Changes
To Special Condition 12 .......................... 11
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3.3.5 Prohibition Against Challenging Notice Of Cancellation Or
Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 Election Of Vernon To Terminate Wholesale Interruptible Service ..... 12
3.5 Election Of Vernon To Continue Wholesale Interruptible Service ...... 12
3.6 Election Of Edison To Terminate Or To Continue Wholesale
Interruptible Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.7 Factors For Determining Occurrence Of Replacement Of Rate Schedule
1-6 ............................................ 13
3.8 Rights Upon Termination By Edison Of Wholesale Interruptible Service .. 13
3.9 Rights Upon Termination By Vernon Of Wholesale Interruptible
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.10 Waiver Of Claims For Differences With Other Wholesale Customers. . .. 14
3.11 Waiver Of Claims Of Undue Discrimination Arising In FERC
Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.12 Waiver Of Claims Of Undue Discrimination Arising From Differences
Between Present And Future Wholesale And Retail Rates. . . . . . . . . . . 15
3 .13 Non-Integrated Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.13.1 Conditions Not Justifying Refusal To Accept Resource ....... 16
3.13.2 Status Of 1993 Settlement Between Edison And Vernon . . . . . .. 16
3.14 Non Opposition To Edison-Cities Settlement Agreement. . . .. . . . . . .. 17
4 INDEMNITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5 TERM OF AGREEMENT ........... . . . . . . . . . . . . . . . . . . . . . . . 17
6 REGULATORY APPROVAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6.1 Filing Of Settlement At FERC ........................... 18
6.2 Acceptance Or Rejection Of Decisions Of FERC And Courts ........ 18
6.3 Parties To Discuss Rejection By FERC . . . . . . . . . . . . . . . . . . . . . . 19
6.4 Effect Of Rejection By Parties ........................... 19
7 PROHIBITION AGAINST LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . 20
7.1 No Litigation In Courts Or Governmental Agencies .............. 20
7.2 Waiver Of Unknown Claims ............................ 20
7.3 Acknowledgment Of California Code ....................... 21
7.4 Consequences Of Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
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8 NONPRECEDENT AND RESERVATION OF RIGHTS ............... 21
8.1 No Precedent In Any Proceeding Or Litigation ................. 21
8.2 Extent Settlement Agreement Constitutes Waiver Of Rights. . . . . . . . . . 22
8.3 Non-Admission By Edison. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 23
9 PREVIOUS COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
10 CONFLICTS WITH OTHER SETTLEMENT AGREEMENTS ........... 24
11 NONSEVERABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
12 COSTS OF FILING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
13 NONWAIVER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
14 ASSIGNMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
15 GOVERNING LAW AND REGULATIONS. . . . . . . . . . . . . . . . . . . . . . . 25
16 CONSTRUCTION OF AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
17 CAPTIONS AND HEADINGS ............................... 26
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SETTLEMENT AGREEMENT
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
CITY OF VERNON, CALIFORNIA
RELATING TO WHOLESALE INTERRUPfmLE SERVICE
AND FERC DOCKET NO. ER81-177
1 PARTIES
The parties to this settlement agreement ("Settlement Agreement") are Southern
California Edison Company ("Edison"), a California corporation, and the City of Vernon,
California, a California municipal corporation ("Vernon"). Each signatory is a Party and
collectively they are the Parties.
2 RECITALS
2.1 Edison As Regulated By FERC
Edison is an investor-owned public utility doing business in the State of California
and is subject to the jurisdiction of the Federal Energy Regulatory Commission ("FERC")
pursuant to provisions of the Fedetal Power Act ("FPA") with respect to providing electric
service to Vernon and, among others, the Cities of Anaheim, Azusa, Banning, Colton, and
Riverside, California ("Cities").
2.2 Edison As Regulated By CPUC
Edison is subject to the jurisdiction of the California Public Utilities Commission
("CPUC") with respect to furnishing electric service to its retail customers and provides an
interruptible service for certain of its retail customers pursuant to Rate Schedule 1-6 ("Rate
Schedule 1-6") on file with the CPUC.
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2.3 Proceedings Pending Before FERC In Docket No. ERSI-177 Concerning
Wholesale Interruptible Service
Edison has had pending before the FERC a proceeding in Docket No. ER81-177 in
which a remaining issue concerns a request initially raised by Vernon, and subsequently
supported by the Cities, for a type of interruptible electric service which is intended to
benefit end-users of electricity on Vernon's and the Cities' systems to the extent their end-
users choose to take interruptible service.
Responding to a petition for review filed by Vernon pursuant to section 313(b) of the
FP A, the United States Court of Appeals for the District of Columbia Circuit in City of
Vernon v. FERC, 845 F.ld 1042 (D.C. Cir. 1988), remanded back to the FERC Opinion
Nos. 261 and 261-A for further explanation of the denial of the request for interruptible
service wh~ch the FERC had made in those opinions. Following the submission of briefs on
the remanded issue by Edison, the FERC's Trial Staff, Vernon, and the Cities, the FERC
issued an order, on July 21, 1993 (64 FERC , 61,098), instituting settlement procedures in
the docket for the purpose of aiding in the resolution of the issues surrounding the offering
and implementation of the interruptible service sought by Vernon and the Cities.
2.4 Prior Settlements Between Edison And Wholesale Customers
In addition to this Settlement Agreement, Edison has previously executed with Vernon
and separately with the Cities other settlement agreements resolving disputes in Docket
No. ER81-177 and affecting the rates, terms, and conditions of the partial requirements
service which, Vernon and the Cities receive from Edison.
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2.5 Settlement Negotiations
In keeping with the settlement procedures established by the FERC, Edison has
engaged in a series of negotiations with Vernon and the Cities. Those negotiations have
resulted in a settlement by Edison with Vernon, which is embodied in the terms and
conditions of this Settlement Agreement. Further, a separate settlement agreement has been
reached by Edison and the Cities relating to wholesale interruptible service ("Edison-Cities
Settlement Agreement").
3 AGREEMENT
3.1 Wholesale Interruptible Service
Edison agrees to provide to Vernon wholesale interruptible service pursuant to the
provisions of this Settlement Agreement which is implemented in the wholesale interruptible
tariff ("Rate Schedule IR -1.0"), attached hereto as Appendix A and incorporated into this
Settlement Agreement herein by this reference. Except as provided in Sections 3.8 and 3.9
of this Settlement Agreement, Vernon agrees, to the extent that it elects to take wholesale
interruptible service from Edison, that such service shall be governed by the provisions of
this Settlement Agreement and Rate Schedule IR-1.0. References in this Settlement
Agreement to Rate Schedule IR-1.0 include any modifications thereto as may be adopted or
directed by the FERC, and any successor rate schedule governing or affecting wholesale
interruptible service established pursuant to this Settlement Agreement. Both Edison and
Vernon agree that, unless otherwise defined herein, terms in initial capitals have the same
meaning as defined in Rate Schedule IR-1.0.
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3.1.1 Consistency Between Wholesale And Retail Interruptible Services
Rate Schedule IR-1.0 is intended to be consistent with Edison's Rate Schedule 1-6.
Differences in Rate Schedules IR-l.O and 1-6 are due to differences in the nature of service
provided to resale and retail customers, which differences have been agreed to by the Parties
to this Settlement Agreement. Future modifications to Rate Schedule IR-l.O shall be
consistent with Rate Schedule 1-6 or any successor thereto.
3.1.2 Interruptible Service Available To Qualifying Customers Of Vernon
The interruptible service provided by Edison under Rate Schedule IR-l.O shall be
available to Vernon for service only to qualifying retail customers located within its
municipal boundaries.
3.1.3 Limitations On Ability Of End-User To Seek Alternative Sources
During Period Of Interruption
During a Period of Interruption, an interruptible customer of Vernon which has been
noticed to Edison as provided in Rate Schedule IR-1.0 ("Interruptible Customer") may serve
any of its load in excess of the Firm Service Level by utilizing its own on-site generation;
however, the Interruptible Customer's load, as metered by Vernon, shall not exceed the
Interruptible Customer's Firm Service Lever without the penalty provided in Rate Schedule
IR-1.0, unless Rate Schedule 1-6 or a new rate schedule as provided in Section 3.7 permits
the Interruptible Customer to purchase any or all of its requirements from other suppliers
during such interruption.
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3.1.4 Limitation On Changes Resulting From Differences Between
Wholesale Rate Schedule And Currently Effective Retail Rate
Schedule
Edison and Vernon agree that no Party may seek to modify, alter, amend, or
terminate Rate Schedule IR-1.0 as a result of any differences which exist between that rate
schedule and the version of Rate Schedule 1-6 that was made effective by the CPUC on
March 17, 1995.
3.1.5 Basis For Wholesale Interruptible Credit
The "avoided cost-based" level of the Rate Schedule 1-6 interruptible credit is the
dollar per kW figure, adopted by the CPUC in a General Rate Case or other regulatory
proceeding, which represents the costs avoided by Edison as a result of Rate Schedule 1-6
customers taking interruptible rather than firm service (referred to herein as the "Cost-Based
Credit Level"). The basis for the current Cost-Based Credit Level is provided in CPUC
Decision No. 92-06-020, pages 104 and 105. The Parties recognize that there may be times
when the credit level used by the CPUC to set future Rate Schedule 1-6 rates may not be
equal to the most recently adopted Cost-Based Credit Level. In addition, for retail
ratemaking purposes, the Rate Schedule 1-6 interruptible credit is currently allocated between
demand and energy. However, for purposes of this Settlement Agreement, the interruptible
credit shall solely be provided as a reduction to the wholesale partial requirements demand
charge in the on-peak period ("On-Peak Period") as set forth in Edison's rate schedule on file
with the FERC applicable for service to Vernon ("Partial Requirements Rate") as such rate
may be changed or modified. The Interruptible Demand in the On-Peak Period for any given
month shall not exceed Vernon's Billing Demand as defined in such Partial Requirements
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Rate. If, in any month, the rate per kW charged by Vernon to one or more of its
Interruptible Customers for demand in the On~Peak Period does not exceed the Demand
Charge Credit per kW provided by Vernon to such Interruptible Customers, the demand of
such Interruptible Customer shall not be included in the calculation of the Interruptible
Demand of Vernon for such month.
3.1.6 Credit For Wholesale Interruptible Service
The initial Demand Charge Credit shown on Rate Schedule IR-1.0 for Vernon is
equal to the credit of $86.44/kW-yr. applicable to interruptible service currently provided
under Rate Schedule 1-6 as adopted by the CPUC for the subtransmission voltage level of
service, which results in a Demand Charge Credit of $7.20/kW-mo. The use of that voltage
level of service reflects the voltage level at which system costs were allocated to Vernon in
the currently effective Partial Requirements Rate. The CPUC is expected in the current
General Rate Case to implement a new credit level for Rate Schedule 1-6. However, for
purposes of this Settlement Agreement, the initial Demand Charge Credit for wholesale
interruptible service, .as described above and shown on Rate Schedule IR-1.0, shall remain
unchanged until January 1, 1998. At that time, and at any time thereafter, the Demand
Charge Credit on Rate Schedule IR-1.0 shall be revised to equal the most recently adopted
Cost-Based Credit Level adopted by the CPUC for Rate Schedule 1-6 or its successor.
Vernon shall not contest any filing with the FERC made by Edison to implement such
revision except to the extent that the Cost-Based Credit Level for Rate Schedule 1-6 has not
been accurately reflected in Rate Schedule IR-1.0. The Demand Charge Credit per kW
provided on Rate Schedule IR~1.0 or its successor shall in no case exceed the demand charge
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per kW contained in the Partial Requirement Rate applicable to Vernon for service during the
On-Peak Period.
3.1.7 Documentation Of Requests For Interruptible Service
When seeking to serve an interruptible load pursuant to Rate Schedule IR-1.0, Vernon
shall notify Edison in writing of the identity of each Interruptible Customer. Along with the
written notice, Vernon shall provide a copy of an executed contract between Vernon and the
Interruptible Customer, which identifies the Interruptible Customer's Firm Service Level and
the terms of interruption which shall be consistent with the Rate Schedule IR-1.0. At the
time .that Vernon notifies Edison of the identity of the Interruptible Customer, Vernon shall
certify to Edison that the rate per kW charged by Vernon during the On-Peak Period to the
Interruptible Customer shall be greater than the demand charge credit per kW provided to the
Interruptible Customer. In so certifying that the rate per kW charged to its Interruptible
Customer for demand during the On-Peak Period is greater than the demand charge credit
per kW , Vernon shall furnish any information or documentation supporting such certification,
as may be reasonably requested by Edison. Similarly, Vernon shall, subsequent to the
initiation of interruptible service to any Interruptible Customer, furnish any information or
documentation, as may be reasonably requested by Edison, that the rate per kW charged by
Vernon during the On-Peak Period for demand remains greater than the demand charge
credit provided to the Interruptible Customer.
3.1.8 Timing Of Notice Of Interruption
A Notice of Interruption may be given by Edison only in a month where Vernon in
the immediately preceding month has informed Edison that, in such preceding month, it has
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incurred an On-Peak Billing Demand exceeding 1.0 MW. Further, such notification may be
given regardless of whether, at the time of the Notice of Interruption, Vernon is receiving
energy supplied by Edison under the Partial Requirements Rate. If, by the last day of a
month, Vernon has not informed Edison that it incurred such a Billing Demand in that
month, and it is later determined that Vernon did incur such a Billing Demand, Edison may
provide a Notice of Interruption, if required, at any time during the remainder of the month
in which such determination is made and at any time during the following month of such
determination, regardless of whether Vernon incurs such a Billing Demand in those months.
If Vernon in the preceding month had informed Edison that it incurred such a Billing
Demand exceeding 1.0 MW, and in fact Vernon did not, Edison shall be held harmless for
any Notice of Interruption provided by Edison during this period. In exercising its right to
interrupt under Rate Schedule IR-1.0, Edison shall follow the same procedures used in
exercising its right to interrupt its own Rate Schedule 1-6 customers. To the extent
practicable, the interruptible load of Vernon and each of the Cities (Vernon and the Cities
being collectively the "Municipal Wholesale Customers") shall be placed in a separate
interruptible load group or block along with Edison's Rate Schedule 1-6 customers. Initially,
the interruptible load of no more than two Municipal Wholesale Customers will be placed in
the same group or block for interruption. However, the Parties recognize that the number of
Municipal Wholesale Customers in a given interruption group or block may vary in the event
the total number of interruption groups or blocks change.
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3.1.9 Determination Of Loss Factor For Service To End-User
Rate Schedule IR-1.0 shall provide that, in determining the amount of Interruptible
Demand, such Interruptible Demand shall reflect an adjustment in an amount equal to 1.0
plus the weighted average demand losses, expressed as a percentage, incurred by Vernon to
serve the Interruptible Customers. Such loss factor calculated at the time of Vernon's annual
system peak, shall represent the estimated weighted average losses which are incurred
between Edison's point of delivery serving Vernon and the meters serving the Interruptible
Customers. This loss factor shall be developed based upon information provided by Vernon
and shall be subject to Edison's review and approvaL Rate Schedule IR-1.0 reflects a
mutually agreed upon initial loss factor which shall be utilized until such time as data may be
available that supports a different percentage. Upon Edison's request, Vernon shall provide
Edison with the data reasonably necessary to determine such loss factor. Revisions to the
loss factor shall be no more frequent than once a year.
3.2 Mutual Waiver Of Right To Seek Rate Changes
Except as provided in this Section and Section 3.3, the Parties waive any right they
may otherwise have to amend, modify, or change Rate Schedule IR-1.0 pursuant to sections
205 or 206, or any other provision of the FPA.
3.2.1 Conforming Rate Schedule IR-1.0 to Changes In Retail Rate
Schedule
If, at any time after March 17, 1995, the CPUC should change, modify, or amend
any rate, term, or condition of Rate Schedule 1-6 or its successor, Edison shall have the
right, and, unless the Parties agree otherwise, shall be required, within a reasonable time, to
submit to the FERC, pursuant to section 205 of the FP A, revisions of Rate Schedule IR-l.0
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that conform with the changes made to Rate Schedule 1-6; provided, that any such revisions
shall also be consistent with the provisions for wholesale interruptible service set forth in
Section 3.1. Edison shall propose to the FERC in any such filing that the tendered revisions
be effective 60 days after the submission for filing. Vernon shall not oppose any such filing
other -than on the grounds, if applicable, that the filing does not conform to the changes,
modifications, or amendments implemented or adopted by the CPUC or that such filing is
inconsistent with the provisions for wholesale interruptible service set forth in Section 3.1.
3.2.2 Prior Moratorium Provisions
Except to the extent necessary for the implementation of Rate Schedule IR-1.0, the
Parties agree that the moratorium provisions set forth in any prior agreement limiting
changes to the currently effective Partial Requirements Rate for service to Vernon shall
remain in effect.
3.3 Conditions Governing Termination Of Wholesale Interruptible Service
The wholesale interruptible service provided by Edison in accordance with this
Settlement Agreement shall terminate upon any of the following conditions:
3.3.1 Five Year Notice
The wholesale interruptible service maybe cancelled or terminated on a five-years
advance written notice either by Edison or Vernon.
3.3.2 Cancellation Or Termination Of Rate Schedule 1-6 Without
Replacement
In the event that Rate Schedule 1-6 is cancelled or terminated and no new rate
schedule for retail interruptible service to be rendered by Edison has been implemented to
replace Rate Schedule 1-6, Rate Schedule IR-1.0 may be cancelled or terminated on a written
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notice by Edison or Vernon providing notice of cancellation or termination which must allow
for the implementation of the cancellation or termination over the same period of time as
provided to Edison's interruptible retail customers as a result of the cancellation or
termination of Rate Schedule 1-6, or, at a minimum, 60 days-notice.
3.3.3 Cancellation Or Termination Of Rate Schedule 1-6 With
Replacement
If Rate Schedule 1-6 is cancelled or terminated and a new rate schedule for retail
interruptible service, which is intended to replace Rate Schedule 1-6, is made available to
Edison's retail customers, then within 30 days of the CPUC's approval of the new retail
interruptible tariff, Edison shall notify Vernon of the CPUC's action and provide Vernon
with a copy of the new retail tariff; thereafter, within 60 days of Edison's notice, Vernon
shall notify Edison in writing of its election to: (1) terminate wholesale interruptible service;
or (2) request Edison to file a new wholesale interruptible tariff which shall conform to such
new retail interruptible tariff and which shall also be consistent with the provisions for
wholesale interruptible service set forth in Section 3.1.
3.3.4 Right Of Vernon To Terminate Or Cancel Because Of Changes To
Special Condition 12
Vernon may terminate wholesale interruptible service pursuant to this Settlement
Agreement within 90 days of the effective date of termination or a material change in Special
Condition No. 12 of the existing Partial Requirements Rate. If Vernon does not provide
Edison notification of termination pursuant to this Section 3.3.4 within 90 days of such
effective date, then Vernon's right to so terminate service shall be waived for such
termination or material change.
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3.3.5 Prohibition Against Challenging Notice Of Cancellation Or
Termination
Neither Edison nor Vernon shall oppose or otherwise challenge a notice of
cancellation or termination tendered pursuant to this Section 3.3 or raise any objection in a
proceeding before the FERC instituted for implementation of such notice.
3.4 Election Of Vernon To Terminate Wholesale Interruptible Service
If Vernon elects to terminate wholesale interruptible service pursuant to Section 3.3.3,
such service shall terminate over the same time period as provided by the CPUC for service
to Edison's Rate Schedule 1-6 customers.
3.5 Election Of Vernon To Continue Wholesale Interruptible Service
If Vernon elects to continue wholesale interruptible service under Section 3.3.3, then
Edison shall develop and file a new wholesale interruptible tariff which shall conform, to the
greatest extent practicable, to such new retail interruptible tariff and which shall also be
consistent with the provisions for wholesale interruptible service set forth in Section 3.1.
Vernon shall not contest such filing except to the extent such new wholesale interruptible
tariff does not conform to the new retail interruptible rate or is inconsistent with the
provisions for wholesale interruptible service set forth in Section 3.1. Such new interruptible
service shall be made available to Vernon, to the greatest extent practicable, on the same
terms and conditions as applicable to Edison's retail customers. Unless otherwise agreed, the
terms and conditions of this Settlement Agreement shall be applicable to such new wholesale
interruptible service.
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3.6 Election Of Edison To Terminate Or To Continue Wholesale Interruptible
Service
If Vernon does not provide written notice of its election in accordance with Section
3.3.3, Edison shall have the right, within 120 days of such notice provided for in Section
3.3.3, to elect to terminate wholesale interruptible service in accordance with Section 3.4 or
to continue such service by filing a new wholesale interruptible tariff in accordance with
Section 3.5.
3.7 Factors For Determining Occurrence Of Replacement Of Rate Schedule
1-6
For purposes of this Settlement Agreement, Rate Schedule 1-6 shall be considered
replaced when Edison's retail customers which have contracted to receive interruptible
service under Rate Schedule 1-6 have the right to receive service under the new schedule, the
new schedule contains terms and conditions substantially similar to Rate Schedule 1-6, and
Rate Schedule 1-6 has been terminated by action of the CPUC. If Edison, with CPUC
approval, adds a new rate schedule for retail interruptible service which is available to all or
some of the retail customers who are then eligible for Rate Schedule 1-6 service, while
retaining Rate Schedule 1-6, Edison shall offer to make such new rate schedule available to
Vernon on the same terms and conditions adopted by the CPUC and in the manner consistent
with the terms of this Agreement.
3.8 Rights Upon Termination By Edison Of Wholesale Interruptible Service
If Edison terminates or cancels wholesale interruptible service pursuant to
Section 3.3, Vernon may, to the extent permitted by the FERC's rules, intervene in any
proceeding instituted before the FERC by Edison pursuant to section 205 of the FP A, or
13
Vernon may file a complaint at the FERC seeking a new or different wholesale interruptible
service. Edison reserves the right to raise whatever objections it may have to such
intervention by Vernon. In any case, this Settlement Agreement and any interruptible
services offered under it shall not be used in evidence or offered as precedent in any
subsequent proceeding before the FERC or any judicial, administrative, or governmental
forum or before any arbitrator or arbitration tribunal.
3.9 Rights Upon Termination By Vernon Of Wholesale Interruptible Service
If Vernon terminates or cancels wholesale interruptible service pursuant to Section
3.3, Vernon may file a complaint pursuant to section 206 of the FPA seeking a new or
different wholesale interruptible service; provided, that this Settlement Agreement and any
interruptible services offered under it shall not be used in evidence or offered as precedent in
any subsequent proceeding before the FERC or any judicial, administrative, or governmental
forum, or before any arbitrator or arbitration tribunal.
3.10 Waiver Of Claims For Differences With Other Wholesale Customers
In the event that, as a result of an order issued by the FERC or as a result of any
judicial appeals taken from such an order, the provision of wholesale interruptible service to
other wholesale customers of Edison differs from the provision of wholesale interruptible
service embodied in and implemented by this Settlement Agreement, Vernon waives any
claim to an adjustment to the provisions for wholesale interruptible service as expressed in
this Settlement Agreement and reflected in Rate Schedule IR-1.0; provided, that such waiver
does not extend to an order of the FERC determining the comparability of wholesale
interruptible service to Rate Schedule 1-6.
14
3.11 Waiver Of Claims Of Undue Discrimination Arising In FERC Proceedings
Vernon waives any claims of undue discrimination (including price squeeze) or for
refunds which it or the Cities may have raised in Docket No. ER81-177 or in any subsequent
proceeding initiated by Edison at the FERC in Docket Nos. ER82-427, ER84-75, ER86-271,
ER87-483, and ER88-83, as well as any claim for refunds or adjustments to the rates
previously established, in those dockets, with regard to the unavailability to Vernon or to
other wholesale customers of an wholesale interruptible rate when an interruptible rate was
available to Edison's retail customers. This waiver shall not be applicable in connection with
any future claims of undue discrimination that may arise after terminations of wholesale
interruptible service pursuant to Section 3.8 or 3.9.
3.12 Waiver Of Claims Of Undue Discrimination Arising From Differences
Between Present And Future Wholesale And Retail Rates
In addition to waiver of any claims based on undue discrimination (including price
squeeze) as set forth in Section 3.11, Vemon also waives any claims of undue discrimination
(including price squeeze) or other claims of anticompetitive effects which might be based
only on differences between the interruptible credit available, either presently or in the
future, to Edison's retail customers, as approved by the CPUC, and the credit being
implemented by this agreement or as subsequently modified in accordance with other
provisions contained herein. Any waiver of claims effectuated by this Section 3.12 is
contingent upon timely compliance by Edison with the provisions of this Settlement
Agreement. This waiver shall not be applicable in connection with any future claims of
undue discrimination that may arise after terminations of wholesale service pursuant to
Sections 3.8 or 3.9.
15
3.13 Non-Integrated Sources
3.13.1
Conditions Not Justifying Refusal To Accept Resource
Edison shall not refuse to accept for use by Vernon as a Non-Integrated Source, as
that term is defined in the Partial Requirements Rate, any resource on the basis that it is
subject to interruption by Vernon's supplier when (1) notice of interruption may be given by
Vernon's supplier upon the same criteria set forth in Special Condition 7 of Rate Schedule
IR-1.0, and (2) the number and duration of permissible interruptions do not exceed those set
forth in Special Condition 9 of Rate Schedule IR-1.0. To the extent the criteria set forth in
Special Conditions 7 and 9 of Rate Schedule IR-1.0 change, Edison shall not refuse to
provide Vernon capacity credit in accordance with the Partial Requirements Rate for those
resources presented to Edison prior to the effective date of any such change and thereafter
accepted by Edison as a non-integrated source; with regard to resources that have been
presented to Edison pursuant to Special Condition 12 of the Partial Requirements Rate after
the effective date of any such change, the changed Rate Schedule IR-1.0 Special Conditions 7
and 9 shall apply. Except as provided in this Section 3.13.1, neither Edison nor Vernon
waive any right, obligation, or claim either may have with regard to the acceptance of a
resource by Edison as a N on- Integrated Source.
3.13.2
Status Of 1993 Settlement Between Edison And Vernon
Nothing in this Section 3.13 shall be construed as affecting in any way the rights or
obligations of the Parties under the 1993 Settlement Agreement between Edison and Vernon
in Docket Nos. ER81-177 (Phase II), ER88-83, and FA85-67 (dated July 8, 1993).
16
3.14 Non Opposition To Edison-Cities Settlement Agreement
Vernon agrees not to oppose or otherwise challenge the Edison-Cities Settlement
Agreement.
4 INDEMNITY
Vernon shall defend at its own cost and indemnify and hold harmless Edison, its
officers, agents, employees, assignees, or successors in interest, for and against any and all
liability (including liability based upon negligence and liability without fault), damages, costs,
losses, claims, demands, actions, causes of actions, attorneys' fees and expenses, or any of
them, resulting from the death or injury to any person or damage to any property, to the
extent caused by Edison initiating a Period of Interruption; provided, that Edison's initiation
of such Period of Interruption is performed in compliance with Rate Schedule IR-1.0.
5 TERM OF AGREEMENT
This Settlement Agreement shall become effective on the later of the last date it is
signed by all Parties hereto or on the last date that the Edison-Cities Settlement Agreement
has been signed by all parties to that agreement. This Settlement Agreement shall remain in
effect unless terminated in accordance with Sections 6.2 or 6.3. Any rates or services
provided under this Settlement Agreement shall become effective in accordance with Section
6.2 and shall remain effective until terminated in accordance with Section 3.3.
17
6 REGULATORY APPROVAL
6.1 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 fair and reasonable and in
the public interest.
6.2 Acceptance Or Rejection Of Decisions Of FERC And Courts
Within seven days of the issuance of an order of the FERC approving this Settlement
Agreement, Edison and Vernon shall review such order to determine if the FERC has
changed or modified a condition, deleted a condition, or imposed a new condition in this
Settlement Agreement and shall notify each other in writing of their acceptance or rejection
of the order. Failure to resolve an order which changed, deleted, mogified, or added a
condition to the satisfaction of both Edison and Vernon within 22 days after the date of such
order of the FERC and thereafter to obtain regulatory approval of such resolution shall
terminate this Settlement Agreement. In the event that the Edison-Cities Settlement
Agreement has been terminated by either Edison or Cities following the issuance of an order
approving that settlement which changed or modified a condition, deleted a condition, or
imposed a new condition, then this Settlement Agreement shall terminate on the date that the
Edison-Cities Settlement Agreement terminates. For purposes of compliance with this
Settlement Agreement, an order or orders of the FERC approving the terms and conditions
of this Settlement Agreement or the Edison-Cities Settlement Agreement subject to the
agency's jurisdiction shall be deemed final when they are no longer subject to judicial
18
reVIew. If a petition for review of the order of the FERC is taken by any third party,
resulting in the issuance of a decision or order of the appropriate circuit of the United States
Court of Appeals addressing the FERC's order approving the Settlement Agreement, Edison
and Vernon shall review such decision or order and indicate to each' other, within 15 days of
the court's decision or order, their acceptance or rejection of the court's action. If either
Edison or Vernon reject such decision or order, this Settlement Agreement shall terminate.
Similarly, if a petition for review of an order of the FERC approving the Edison-Cities
Settlement Agreement is taken by any third party, resulting in a decision or order of the
United States Circuit Court of Appeals that causes either Edison or Cities to terminate their
agreement, then this Settlement Agreement shall also terminate.
6.3 Parties To Discuss Rejection By FERC
Should the FERC reject or disapprove this Settlement Agreement, Edison and Vernon
shall confer within five days of the issuance of such order reflecting such action and
determine if rehearing of the order should be sought. In the absence of the filing of a
request for rehearing within the time provided by section 313(a) of the FPA, this Settlement
Agreement shall terminate. Similarly, in the event that a request for rehearing of an order
rejecting or disapproving the Edison-Cities Settlement Agreement is not filed within the time
provided by section 313(a) of the FPA, this Settlement Agreement shall also terminate.
6.4 Effect Of Rejection By Parties
In the event of any termination effectuated pursuant to Section 6.2 or Section 6.3,
neither this Settlement Agreement nor the Edison-Cities Settlement Agreement shall be
offered as evidence or cited as precedent in litigation concerning wholesale interruptible
19
service, including, without limitation, any continued litigation in FERC Docket No. ER81-
177.
7 PROHIBITION AGAINST LITIGATION
7.1 No Litigation In Courts Or Governmental Agencies
Neither Edison nor Vernon 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 Vernon. 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.
7.2 Waiver Of Unknown Claims
Edison and Vernon understand and intend that the prohibition described in Section 7.1
extends to claims which either Edison or Vernon 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,
must have materially affected its settlement with the other party. In this regard, Edison and
Vernon hereby waive application of California Civil Code Section 1542.
20
7.3 Acknowledgment Of California Code
Edison and Vernon 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.
7.4 Consequences Of Waiver
Edison and Vernon 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 claims referred to in Section 7.2, they will not be
able to make any claim for those damages. Furthermore, Edison and Vernon 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.
8 NONPRECEDENT AND RESERVATION OF RIGHTS
8.1 No Precedent In Any Proceeding Or Litigation
None of the principles or the methodologies underlying ,this Settlement Agreement
shall be deemed by Edison or Vernon as binding precedent in any proceeding or litigation
except to the extent specifically stated herein. Moreover, by entering this Settlement
Agreement, Edison and Vernon do not expressly or implicitly concede that the principles or
21
the methodologies underlying this Settlement Agreement are correct or represent proper
ratemaking principles. Edison and Vernon have assented to the principles and methodologies
underlying this Settlement Agreement in order to arrive at the settlement embodied in this
agreement and Appendix A. Edison and Vernon 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 Vernon expressly declare that this Settlement Agreement should not be construed
as a precedent for or against either of them in such advocacy.
8.2 Extent Settlement Agreement Constitutes Waiver Of Rights
Edison and Vernon agree that nothing provided in this Settlement Agreement 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 govermnental 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 Vernon agree that the fact of having (1) entered into this Settlement Agreement,
(2) complied with the terms and conditions of Rate Schedule IR -1. 0 or its successors
governing the terms and conditions of wholesale interruptible service, (3) engaged in a
course of conduct resulting from rendering or taking wholesale interruptible service, or (4)
tendered, in the manner provided by Section 3.3 of this Settlement Agreement, a notice of
cancellation or termination of Rate Schedule IR-1.0, or any combination of the foregoing,
shall not in any way alter, amend, change, or terminate any such right or claim or provide
22
any defense thereto. Further, Edison and Vernon agree that the execution of this Settlement
Agreement, including Rate Schedule IR -1.0, the implementation of or compliance with Rate
Schedule IR-1.0, or the pursuit of any course of conduct under this Settlement Agreement or
Rate Schedule IR-1.0 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 or Rate Schedule
IR-1.0.
8.3
Non-Admission By Edison
By its execution of this Settlement Agreement, Edison does not admit to any
allegations relating to any of its activities including, but not limited to, those raised by
Vernon or the Cities or both in Docket Nos. ER79-150, ER81-177, ER82-427, ER84-75,
ER86-271, ER87-483, or ER88-83.
9 PREVIOUS COMMUNICATIONS
This Settlement Agreement contains the entire agreement and understanding between
Edison and Vernon as to the subject matter of this Settlement Agreement, and supersedes all
prior agreements, commitments, representations, and discussions between Edison and
Vernon.
23
10 CONFLICTS WITH OTHER SETTLEMENT AGREEMENTS
To the extent that the terms and conditions of this Settlement Agreement conflict with
settlement agreements previously reached by Edison and Vernon, this Settlement Agreement
shall control. In all other respects, the terms and conditions of the previous settlement
agreements are not affected by this Settlement Agreement.
11 NONSEVERABILITY
Edison and Vernon 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 Vernon, and each term of this Settlement Agreement is in consideration and support of
every other term.
12 COSTS OF FILING
Edison shall pay the filing fees, if any, required as a result of the filing of this
Settlement Agreement.
13 NONWAIVER
The failure of either Edison or Vernon 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.
24
14 ASSIGNMENT
Neither Edison nor Vernon shall assign or otherwise transfer this Settlement
Agreement, or its right or interest or any part thereof to any third party, without the prior
written consent of the other Party. Such consent shall not be unreasonably withheld. No
assignment of this Settlement Agreement shall relieve the assigning party of its obligations
until such obligations have been assumed in writing by the assignee. When duly assigned in
accordance with the foregoing, this Settlement Agreement shall be binding upon and inure to
the benefit of the assignee. The execution of an agreement by Vernon with an Interruptible
Customer for the extension of the benefits of wholesale interruptible service provided by this
Settlement Agreement shall not constitute an assignment or transfer of this Settlement
Agreement which requires the prior written consent of Edison, nor shall Vernon's agreement
with its Interruptible Customer relieve Vernon of any of its obligations under this Settlement
Agreement.
15 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.
16 CONSTRUCTION OF AGREEMENT
Ambiguities or uncertainties in the wording of this Settlement Agreement shall not be
construed. for or against either Edison or Vernon, but shall be construed in a maIlller that
25
-.i:""
, .
most accurately reflects the intent of Edison and Vernon, as expressed herein, when this
Settlement Agreement was executed and is consistent with the nature of the rights and
obligations of Edison or Vernon with respect to the matter being construed.
17 CAPTIONS AND HEADINGS
All captions and headings appearing in this Settlement Agreement are inserted to
facilitate reference and shall not govern the interpretations hereof.
IN WITNESS WHEREOF, the Parties execute this Settlement Agreement as of the
13Jh. day of CX:..~ { , 1995.
SOUTHERN CALIFORNIA EDISON COMPANY
By ~i~/~.Y
Vice President
CITY OF VERNON, CALIFORNIA
~ -.,.' "'\.,
BY~~Ud--C-;-L;;1/74I('-t-'1/ .
/" " EONIS C. lV"1AL!3tRG, May~r
ATTEST: ~~
~---.,,////~~~~
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
~~ ~~Y~torney
26
"
.-
~~,
.
.."...c.~ Southern California Edls~~ ·
2244 Walnut Grove Avenue. Rosemead, California 91nO
NAME OF FILING UTILITY
Southern California Edison Company
NAHB OF OTHER UTILITY RECBIVING SERVICB
City of Vernon
DBSCRIPTION OF SERVICB
This rate schedule is applicable only
for interruptible resale power delivered
to the City of Vernon, California, at a
nominal voltage of 66,000 volts.
, ..
.,..,-&".6 Southern California E~lIs~n .
2244 Walnut Grove Avenue, Rosemead, California 91 no
Schedule IR-l.O
INTERRUPTIBLB RBSALB
APPLICABILITY
Applicable to interruptible resale electric power delivered at
the City of Vernon's .( .City.) city limits at a nominal voltage of
66,000 volts. This rate schedule 1S a supplement to the applicable
Partial Requirements Rate Schedule. This rate schedule 15 a result
of a settlement in Docket No. ER81-177, and is only available
pursuant to the Settlement Agreement in that docket.
RATBS
Per Meter
Per Month
Demand Charge Credit:
All kW of On-Peak Interruptible Demand, per kW
$7.20
SPBCIAL CONDITJONS
1. City'. Interruptible CUstomers: The city's Interruptible
Customers are those end-use customers of the City which have been
noticed pursuant to Special Condition No.6, are located within the
City boundaries, have an executed agreement with the City for
interruptible service, and a Maximum Demand that is expected to
exceed 500 kW or has exceeded 500 kW in any three months during the
preceding 12 months.
2. Maximum Demand: The Maximum Demand for each of the City's
Interruptible Customers for the On-Peak, Mid-Peak, and Off-Peak
time periods shall be the measured maximum average kilowatt input
during any clock half-hour interval for each time period in the
month.
3. Firm Service Level: The Firm Service Level of each of the
City's Interruptible Customers is the Maximum Demand those
customers have agreed not to exceed during any~Period of
Interruption. The Firm Service Level of each of the City's
Interruptible Customers shall be specified in the contract between
the City'S Interruptible Customer and the City. Increases in Firm
(Continued)
LW951600.069
( ]
'"
,) ,.
~~ Southern California Edls~n ·
2244 Walnut Grove AY8nU8. Rosemead, Callfomia 91no
Schedule IR-l.0
INTBRRUPTIBLB RBSALB
(Continued)
SPBCIAL CONDITIONS (Continued)
3. Firm Service Level: . (Continued)
Service Level of each of the City's Interruptible Customers may be
made no more often than once per year and only when such customer
has made a bona fide addition of load. Such a change in Firm
Service Level is subject to the approval of the Company. Such
approval shall be given by the Company on the same basis and within
the same time period as the Company approves requests for increases
in Firm Service Level by its retail 1-6 customers. A reduction in
the Firm Service Level can occur at any time upon notice to the
Company. A reduction in Firm Service Level shall become effective
beginning in the month following such notice. The City's
Interruptible Customers shall attain their Firm Service Level only
by reducing their demand and/or by utilizing their own on-site
generation.
4. Interruptible Demand: The Interruptible Demand shall be
the lesser of: a) the sum of the quantities by which each of the
City's Interruptible Customer's Maximum Demand in the On-Peak Period
for the billing period exceeds the Firm Service Level, multiplied by
the Applicable Loss Factor; or b) the Billing Demand in the On-Peak
period for the City as defined in the then-effective Partial
Requirements Rate Schedule. If, in any month, the rate for demand
charged by the City 'to one or more of the City's Interruptible
Customers in the On-Peak Period, as defined in the then-effective
Partial Requirements Rate Schedule, is less than the interruptible
credit provided by the City to such customers, the demand of such
customers shall not be included in the calculation of the
Interruptible Demand of the City for such month.
5. Applicable Loss Factor: An amount equal to 1.0 plus the
weighted average demand losses expressed as a percentage incurred by
the City to serve the City'S Interruptible Customers. Such loss
factor, calculated at the time of the City'S annual peak demand,
shall represent the estimated weighted average losses which are
incurred between the Company's Point of Delivery serving the City
and .the meters serving the City's Interruptible Customers.
(Continued)
LW951600.069
,
C. 411,\
{ " ~
..,,-&'1!1' Southern California E~:Us'~n ·
2244 Walnut Grove Avenue, Rosemead. CalIfomla 91 no
Schedule IR-l.0
INTERRUPTIBLB RESALB
(Continued)
~PBCIAL CONDITIONS (Continued)
5. Applicable Loss Factor: (Continued)
This loss factor shall be developed based upon information provided
by the City and is subject to the Company's review and approval.
The Applicable Loss Factor shall be 1.024 until.such time as data is
available that supports a different percentage. In no case shall
the Applicable Loss Factor be revised more often than once annually.
6. Notification of Interruptible CUstomer: Notification of
an Interruptible Customer is deemed to have occurred on the day that
the Company receives a copy of an executed contract between the City
and the City's Interruptible Customer. The City shall certify to
the Company that the rate for demand which the City will charge
City'S Interruptible Customer during the On-Peak period as defined
in the then-effective Partial Requirements Rate Schedule is greater
than the. interruptible credit provided by the City to such Customer.
In so certifying, the City shall furnish the tariff or any other
information supporting the certification, as Edison may reasonably
request. In the event that the City changes the rates or
interruptible credits applicable to city's Interruptible Customer,
the City shall within ten days of such change renew the
certification set forth above.
7. Notice of Interruption: Except as provided below, Notice
of Interruption can be given to the City during any period in
which: (1) the next to the last peaker is required to be operated
and there is insufficient time to evaluate and secure alternative
options; or (2) spinning reserve is anticipated to fall below 5
percent for more than one hour, and the Company cannot provide
energy and capacity at a price below 7 cents per kWh. The Company
shall notify the City and the City shall in turn notify all of the
City'S Interruptible Customers to reduce their load to their
individual Firm Service Levels with{n two full clock fifteen (15)
minute intervals of,Company's notice. This notification ,can occur
only in a month where the City in the immediately preceding month
has informed the Company that, in such preceding month it has
incurred a Billing Demand in the On-Peak period exceeding 1.0 MW
under the then-effective Partial Requirements Rate Schedule.
(Continued)
LW951600.069
"
...... ".t.
., <
.,..,-c:iT Southern California Ed"ls~~ ·
2244 Walnut Grove Avenue, Rosemead, California 91no
Schedule IR-l.0
INTERRUPTIBLB RESALB
(Continued)
SPBCIAL CONDITIONS (Continued)
7. Notice of Interruption: (Continued)
If, by the last day of a month, the City has not informed the
Company that it incurred such a Billing Demand in that month, and it
is later determined that the City did incur such a Billing Demand,
the Company may provide Notice of Interruption, if required, at any
time during the remainder of the month in which such determination
is made and at any time during the month following such
determination, regardless of whether the City incurs such a Billing
Demand in those months. If the City in the preceding month had
informed the Company that it incurred a Billing Demand in the
On-Peak period exceeding 1.0 MW, and it is later determined that it
in fact did not, the Company shall be held harmless for any Notice
of Interruption provided by the Company during this period. In
order for the Company to give Notice of Interruption in an efficient
manner, the City must have installed a Remote Terminal Unit in its
control room, which will allow the Company to provide Notice of
Interruption consistent with that provided to the Company's Rate
Schedule No. I-6 customers. If the City chooses to install, own,
operate ,and maintain such equipment, it will be liable for any
charges that result from the City not receiving a Notice of
Interruption due to malfunction of the City's equipment. Edison
shall have the right to periodically test the operation of such
equipment.
8. Period of Interruption: For billing purposes, a Period of
Interruption is a time interval which commences when two full clock
fifteen (15) minute intervals have elapsed since the Notice of
Interruption and which ends upon notification by the Company.
9 . Number and Duration of Interruptions: The number of
Periods of Interruption shall not exceed 25 per calendar year. The
duration of each Period of Interruption shall not exceed 6 hours.
10. Charge for Failure to Interrupt: For each Period of
Interruption during which the City's Interruptible Customer fails to
reduce demand to its Firm Service Level, a penalty equal to the
lesser of the Demand Charge Credit or the then-effective Partial
Requirements Demand Charge for the On-Peak period shall be assessed
per hour, or part of an,hour, and shall be added to the City'S
(Continued)
LW951600.069
< ..
,
,,'1 or
1;(' ",'~ ..
~C~ Southern California Edison
2244 Walnut GrOiI9 Avenue, Rosemead, California 91770
Schedule IR-l.0
INTERRUPTIBLE RESALB
(Continued)
SPBCIAL CONDITIONS (Continued)
10. Charge for Failure to Interrupt: (Continued)
electric bill. The kW to be utilized for calculating this charge
shall be the City'S Interruptible Customer's highest metered clock
thirty (30) minute integrated kW demand in each hour during a Period
of Interruption compared to the City'S Interruptible Customer's Firm
Service Level.
11. Information Bxchange: By the fifteenth day of each
month, the City shall provide to the Company, in a format acceptable
to the Company, either: (a) for months in which there is not a
Period of Interruption, the maximum demand for each of the City's
Interruptible Customers; or (b) for months in which there is a
Period of Interruption, metered demand data in pulse format that has
been recorded in clock fifteen (15) minute intervals that is
electronically importable into the Company's billing system for each
of the City's Interruptible Customers. If requested by the Company
for auditing purposes, the City shall provide metered demand data in
pulse format that has been recorded in clock fifteen (15) minute
intervals and is electronically importable into the Company's
billing system for each of the City'S Interruptible Customers for
months in which there was not a Period of Interruption. The Company
shall limit its request for data to the most recent 36 month period
from the time the request is made. Any information provided by the
City pursuant to requests by the Company under this Special
Condition shall be considered confidential and shall be used solely
for billing purposes.
12. Applicability of De~nd Charge Credit: The City shall
be eligible to begin receiving the Demand Charge Credit attributable
to a City'S Interruptible Customer on the later of: i) the first
day of the calendar month which is 45 days after Notification of
Interruptible Customer; or ii) the first day of the calendar month
after City has installed the necessary metering equipment. The
Demand Charge Credit shall not exceed the On-Peak Demand Charge in
the then-effective Partial Requirements Rate. The Demand Charge
Credit, if any, will be included as a credit to the Partial
Requirements Demand Charge on the City'S bill each month.
(Continued)
LW951600.069
., .. ~
>l: $ J -(
I (
,
.,..,-&".6 Southern California EdIS~~ f
2244 Walnut Grove Avenue, Rosemead, California 91770
SChedule IR-l.0
INTERRUPTIBLB RESALB
(Contlnued)
SPECIAL CONDITIONS (Continued)
13. Rate Schedule Cancellation: (Continued)
This Rate Schedule may be canceled as provided 1n the Settlement
Agreement between the Company and the City dated I in
Docket No. ER81-177.
14. Changes to Rate Schedule: The rates, terms and
conditions of this Rate Schedule may be revised only as provided in
the Settlement Agreement between the Company and the City dated
, in Docket No. ER81-177.
LW951600.069
.
~ .
CITY COUNCIL ~ DAVID B. BREARLEY
City Attorney
LEOMS C. MALBURG ,~ry e FAX: (818) 330-5818
s
Mayor "
Community Services & Water
THOMAS A. YBARRA ~ ~ t FAX: (213) 588-2761
Mayor Pro-Tem
A , A KENNETH J. DeDARIO
Wm. "BILL" DAVIS ~ Director of Light & Power
Councilman - FAX: (213) 583-1983
' ' E DAVE TELFORD
H. "LARRY" GONZALES EQ, yos. ,
.Councilman ~ xouN° Fire Chief
W. MICHAEL McCORMICK f FAX: (2l3) 581-1385
Councilman "1' e LOUIS ROSENKRANTZ
Police Chief
BRUCE V. MALKENHORST CITY HALL FAX: (213) 581-1178
City Administrator/City Cierk In Reply Rejer fo:
Fax: (zi3) 581-79za 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (213) 583-8811
August 2, 1995
Mr. Stephen Pickett, Esquire
Associate General Counsel
Southern California Edison Company
P.O. Box 800
Rosemead, California-91770
Re: Settlement Agreemen Between Southern California Edison
Company and-City of Vernon, California Relating to
Wholesale Interruptible Service and FERC Docket No.
ER81-177
Dear Mr. Pickett:
Enclosed herewith are two duplicate originals of the above-referenced
settlement agreement which have been executed by the appropriate
officials of the City of Vernon.
After Edison has executed both documents., please return one original
to the attention of the undersigned.
~f you should have any questions, please do not hesitate to contact
Mr. David B. Brearley.
Very truly yours, _
CIT F VERNON
~l~'e6
Gloria J. O sco
Chief Depu City Clerk
GJO/hr
Enclosure
cc: David B. Brearley (w/o enc.)
City Attorney
CITY COUNCIL DAV REARLEY
~ t Attorney
LEONIS C. MALBURG F : (818) 330-581;
Mayor
TOR H. VAI S
THOMAS A. YBARRA Di ct r f C mm n y Se : i Water
Mayor Pro-Tem F : ( 58 -
Wm. "BILL" DAMS J. De4RI0
Councilman D' to f Light & Power
H. "LARRY" GONZALES F 'X: (21 58~-1983
Councilman AVE ORD
W. MICHAEL McCORMICK Fi Chief
Councilman FAX: (213) 581-]385
LOUIS ROSENKRANTZ
BRUCE V. MALKENHORST Police Chief
City Administrator/City Clerk CITY HAIL FAX: (213) 581-1178
FAX: (213) 581-7924 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 In Reply Refer to:
'TELEPHONE (213) 583-8811
August l,~ - 995
4
Hand Delivered
Ms. Gloria Orosco
Chief Deputy City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058-0805
Re: Settlement greement Between Southern California Edison
Company a City of Vernon, California Relating to
Wholesale nterruptible Service and FERC Docket No. ER81-
177
Dear Gloria:
Enclosed pl ase find two duplicate originals of the above-
referenced Agree ent, which I have approved as to form. Please
have both duplic to originals executed aru~ return :both cif therm to
Stephen Pickett at Edison. After Edison executes the Agreement,
one original copy will be returned to the City. Edison will
manually insert the date appearing in the Agreement and proposed
Rate Schedule IR-1.0 when it executes the Agreement.
If you have any questions, please do not hesitate to call me.
Very truly yours,
David B. Brearley
City Attorney
DBB:jl
Enclosures
TO: Gloria J. Orosco
FROM: Douglas A. Snow
Dt~TE: October 25 1995
SiJBJECT: Docket No. ER81-177, Wholesale Interruptible Settlement, and
Docket No. ER95-139, 1995 Scheduling and Dispatching
.Settlement
Enclosed is a signed original copy of the settlement agreement in Docket No. ER81-177,
as well as a complete set of signature pages for your copy of the 1995 S&D settlement
agreement in Docket No. ER95-139.
If you have any questions, please do not hesitate to call me. My phone number is (818)
302-2035.
S n erely,
Douglas. A Snow
Enclosures
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