Resolution No. 7293s
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RESOLUTION NO. 7293
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
4 VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
(1) AN AMENDMENT NO. 2 TO THE EDISON-VERNON 1997
5 RESTRUCTURING AGREEMENT; (2) AN AMENDMENT NO. 3 TO
THE EDISON-VERNON FIRM TRANSMISSION SERVICE
6 AGREEMENT; (3) AN AMENDMENT NO. 4 TO THE EDISON-
VERNON MEAD FIRM TRANSMISSION SERVICE AGREEMENT; (4)
7 AN AMENDMENT NO. 3 TO THE EDISON-VERNON VICTORVILLE-
LUGO FIRM TRANSMISSION SERVICE AGREEMENT
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9 - WHEREAS, the City Council of the City of Vernon adopted
10 Resolution No. 7017 on September 16, 1997, approving an Edison -Vernon
11 1997 Restructuring Agreement; and
12 WHEREAS, in accordance with Section 6.3 of the Edison -Vernon
13 Billing Dispute Settlement Agreement, which was approved by the City
14 Council of the City of Vernon by Resolution No. 7100 on March 3, 1998,
15 Vernon and Edison entered into an Amendment No. 1 to the 1997
16 Restructuring Agreement; and
17 WHEREAS, Amendment No. 1 to the 1997 Restructuring Agreement
18 provided Vernon with the one time right to convert the Existing
19 Transmission Contracts transmission loss methodology back to the ISO
20 transmission loss methodology upon written notice to Southern
21 California Edison Company ("Edison"); and
22 WHEREAS, by letter dated February 2, 1999, the City of Vernon
23 gave notice to Edison that it desired to permanently convert the
24 Existing Transmission Contracts transmission loss methodology to the
25 ISO transmission loss methodology; and
26 WHEREAS, the City of Vernon and Edison desire to amend the
27 1997 Restructuring Agreement and the Existing Transmission Contracts
28 to permanently convert to the ISO transmission loss methodology.
1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
2 CITY OF VERNON AS FOLLOWS:
3 SECTION 1: The City Council of the City of Vernon does
4 hereby find and determine that the recitals contained hereinabove are
5 true and correct.
6 SECTION 2: The City Council of the City of Vernon hereby
7 approves the (1) Amendment No. 2 to the Edison -Vernon 1997
8 Restructuring Agreement, (2) Amendment No. 3 to the Edison -Vernon Firm
9 Transmission Service Agreement; (3) Amendment No. 4 to the Edison-
10 Vernon Mead Firm Transmission Service Agreement; and (4) Amendment No.
11 3 totheEdison-Vernon Victorville-Lugo Firm Transmission Service
12 Agreement, copies of which have been presented to the City Council
13 concurrently with this resolution, and the City Council hereby orders
14 said Amendments to be received and filed by the City Clerk.
15 SECTION 3: The City Council of the City of Vernon hereby
16 authorizes the Mayor and the City Clerk to execute said Amendment for,
17 and on behalf of, the City of Vernon.
18 SECTION 4: The City Clerk of the City of Vernon shall
19 certify to the passage of this resolution and thereupon and thereafter
20 the same shall be in full force and effect.
21 APPROVED AND ADOPTED this 16th day of March, 1999.
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LEONIS C. kKLBURGY Mayor
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ATTEST,
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25 BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
7293, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Tuesday, March 16.
1999, and thereafter was duly signed by the Mayor of the City of
Vernon.
BRUCE V. MALKENHORST, City Clerk
(SEAL)
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SUPPORTING
DOCUMENTS
OFFICE OF THE CITY ADMINISTRATOR/
CITY CLERK
INTER -OFFICE MEMORANDUM
DATE: March 24, 1999
TO: Ken DeDario, Director of Utilities
FROM: Gloria J. Oro<ch ief Deputy City Clerk
RE: Amendment No. 2 to the Edison -Vernon 1997 Restructuring
Agreement
Enclosed for your files is a copy of the above referenced
Agreement which was approved by City Council through Resolution
No. 7293 on March 16, 1999.
AMENDMENT NO.2 TO THE
EDISON-VERNON 1997 RESTRUCTURING AGREEMENT
1 Parties: This Amendment No. 2 is entered into by and between the
City of Vernon, California ("Vernon"), a municipal corporation, and
Southern California Edison Company ("Edison"), a California
Corporation, hereinafter sometimes referred to collectively as the
"Parties" and individually as a "Party."
2 Recitals: This Amendment is made with reference to the following
facts among others:
2.1 Edison and Vernon entered into the 1997 Restructuring
Agreement on September 16, 1997. Section 6.3.2 of the 1997
Restructuring Agreement provided Vernon with a one time right
to convert transmission losses under the Existing Transmission
Contracts to ISO transmission losses.
2.2 On March 20, 1998 Edison and Vernon entered into the Billing
Settlement Agreement. In accordance with Section 6.3 of the
Billing Settlement Agreement the Parties entered into
Amendment. No 1.
2.3 Amendment No. 1 amended Section 6.3.2 of the 1997
Restructuring Agreement and the Existing Transmission
Contracts to provide that, for a one year period starting on the
Date of ISO Operations, transmission losses under the Existing
Transmission Contracts would be converted to the ISO
transmission loss methodology. Section 6.3.2 as amended also
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AMENDMENT NO.2 TO THE
EDISON-VERNON 1997 RESTRUCTURING AGREEMENT
provided that, at the end of the one year period, the Parties
would amend the Existing Transmission Contracts to restore the
previously existing transmission loss methodology and that
Vernon would thereafter have a one time right to convert the
Existing Transmission Contracts transmission loss methodology
back to the ISO transmission loss methodology on sixty days'
written notice to Edison.
2.4 By letter dated February 2, 1999, Vernon requested that the
transmission loss methodology in the Existing Transmission
Contracts be permanently converted to the ISO transmission
loss methodology. Therefore, the Parties wish to amend the
1997 Restructuring Agreement and the Existing Transmission
Contracts as set forth in this Amendment No. 2.
3 Agreement: In consideration of the covenants and conditions herein
and other good and valuable consideration, the Parties agree as
follows.
4 Definitions: Terms used herein with initial capitalization shall have
the meanings set forth in the 1997 Restructuring Agreement. Terms
used herein with initial capitalization that are not defined in the 1997
Restructuring Agreement shall have the meanings set forth in this
Section 4. The singular of any definition shall include the plural and
the plural shall include the singular.
AMENDMENT NO.2 TO THE
EDISON-VERNON 1997 RESTRUCTURING AGREEMENT
4.1 1997 Restructuring Agreement: The Edison -Vernon 1997
Restructuring Agreement, on file with the Commission as
Edison's FERC Rate Schedule No. 359.
4.2 Amendment No. 1: Amendment No. 1 to the 1997 Restructuring
Agreement.
4.3 Amendment No 2: This Amendment No 2 to the 1997
Restructuring Agreement.
4.4 Billing Settlement Agreement: The Edison -Vernon Billing
Dispute Settlement Agreement, executed as of March 20, 1998.
5 Effective Date: This Amendment shall be effective on the later of
April 1, 1999 or on the date accepted for filing by the Commission
without changes or modifications. If the Commission enters into a
hearing on this Amendment No. 2 or otherwise orders changes or
modifications to this Amendment No. 2, then this Amendment No. 2
shall not be effective until the date of a final Commission order
without changes or conditions unacceptable to either Party.
6 Amendment:
6.1 Section 6.3.2 of the 1997 Restructuring Agreement shall be
deleted in its entirety and is replaced with the following:
"6.3.2 Transmission losses under the Existing
Transmission Contracts shall be as determined by the
ISO in accordance with the ISO Tariff methodology for
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AMENDMENT NO.2 TO THE
EDISON-VERNON 1997 RESTRUCTURING AGREEMENT
determining transmission losses. Vernon shall be
responsible for paying for or providing to the ISO
transmission losses in accordance with the ISO Tariff."
6.2 The Edison -Vernon FTS Agreement is amended in accordance
with Attachment 1 to this Amendment No. 2 which is attached
hereto and incorporated herein by this reference.
6.3 The Mead FTS Agreement is amended in accordance with
Attachment 2 to this Amendment No. 2 which is attached hereto
and incorporated herein by this reference.
6.4 The Victorville-Lugo FTS Agreement is amended in accordance
with Attachment 3 to this Amendment No. 2 which is attached
hereto and incorporated herein by this reference.
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AMENDMENT NO.2 TO THE
EDISON-VERNON 1997 RESTRUCTURING AGREEMENT
7 Signature Clause: The execution below of this Amendment No. 2 is
expressly deemed to effect execution of Attachments 1, 2, and 3. The
signatories hereto represent that they have been appropriately authorized to
enter into this Amendment No. 2 and Attachments 1, 2, and 3 on behalf of
the Party for whom they sign. Executed this % 94day of March, 1999.
------- SOUTHERN CALIFORNIA EDISON COMPANY
APPROVED
BRYANT C. DANNER ,
Executive Vice President
and General Counsel
By ? By
�., 1 s Attorney RichardAl. Rosenblum
Senior Vice President
CITY OF VERNON
By
eonis C. Malbur , Mayoly
ATTEST:
Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM:
��j �4 R26",
David B. Brearley, City Atto ey
AMENDMENT NO. 3 TO THE
EDISON-VERNON FIRM TRANSMISSION SERVICE AGREEMENT
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AMENDMENT NO.3 TO THE
EDISON-VERNON FIRM TRANSMISSION SERVICE AGREEMENT
PARTIES: This Amendment No. 3 is entered into by and between the
City of Vernon, California ("Vernon"), a municipal corporation, and
Southern California Edison Company ("Edison"), a California corporation,
hereinafter sometimes referred to collectively as the "Parties" and
individually as a "Party."
RECITALS: This Amendment No. 3 is made with reference to the
following facts, among others:
2.1 Edison and Vernon entered into the 1997 Restructuring Agreement
on September 16, 1997. Section 6.3.2 of the 1997 Restructuring
Agreement provided Vernon with a one time right to convert
transmission losses under the Existing Transmission Contracts to
ISO transmission losses.
2.2 On March 20, 1998 Edison and Vernon entered into Amendment.
No 1 to the 1997 Restructuring Agreement.
2.3 Amendment No. 1 to the 1997 Restructuring Agreement amended
Section 6.3.2 of the 1997 Restructuring Agreement and the
Existing Transmission Contracts to provide that, for a one year
period starting on the Date of ISO Operations, transmission losses
under the Existing Transmission Contracts would be converted to
the ISO transmission loss methodology. Section 6.3.2 as amended
also provided that, at the end of the one year period, the Parties
would amend the Existing Transmission Contracts to restore the
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AMENDMENT NO. 3 TO THE
EDISON-VERNON FIRM TRANSMISSION SERVICE AGREEMENT
previously existing transmission loss methodology and that Vernon
would thereafter have a one time right to convert the Existing
Transmission Contracts transmission loss methodology back to the
ISO transmission loss methodology on sixty days' written notice to
Edison.
2.4 By letter dated February 2, 1999 Vernon requested that the
transmission loss methodology in the Existing Transmission
Contracts be permanently converted to the ISO transmission loss
methodology. Therefore, the Parties wish to amend the Edison -
Vernon FTS Agreement as set forth in this Amendment No. 3.
AGREEMENT: In consideration of the covenants and conditions herein
and other good and valuable consideration, the Parties agree as follows.
DEFINITIONS: Terms used herein with initial capitalization shall have
the meanings set forth in the 1997 Restructuring Agreement. Terms used
herein with initial capitalization that are not defined in the 1997
Restructuring Agreement shall have the meanings set forth in this
Section 4. The singular of any definition shall include the plural and the
plural shall include the singular.
4.1 1997 Restructuring Agreement: The Edison -Vernon 1997
Restructuring Agreement, on file with the Commission as Edison's
FERC Rate Schedule No. 359, as it may from time to time be
modified or superseded.
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AMENDMENT NO.3 TO THE
EDISON-VERNON FIRM TRANSMISSION SERVICE AGREEMENT
4.2 Amendment No. 3: This Amendment No. 3 to the Edison -Vernon
FTS Agreement.
4.3 Amendment No. 1 to the 1997 Restructuring Agreement:
Amendment No. 1 to the 1997 Restructuring Agreement on file
with the Commission as Edison's FERC Rate Schedule No. 359.2.
4.4 Amendment No. 2 to the 1997 Restructuring Agreement:
Amendment No. 2 to the Edison -Vernon 1997 Restructuring
Agreement to which this Amendment No. 3 is attached and
incorporated by reference as Attachment No. 1.
EFFECTIVE DATE: This Amendment No. 3 shall be effective on the
effective date of Amendment No. 2 to the 1997 Restructuring Agreement.
AMENDMENT:
6.1 Section 4.33 of the Edison -Vernon FTS Agreement is deleted in its
entirety.
6.2 Section 11 of the Edison -Vernon FTS Agreement is deleted in its
entirety and is replaced with the following:
"11. TRANSMISSION LOSSES: Transmission losses shall
be as determined by the ISO in accordance with the ISO
Tariff methodology for determining transmission losses.
Vernon shall be responsible for paying for or providing to the
ISO transmission losses in accordance with the ISO Tariff."
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AMENDMENT NO.3 TO THE
EDISON-VERNON FIRM TRANSMISSION SERVICE AGREEMENT
7 Signature Clause: In accordance with Section 7 of Amendment No. 2 to
the 1997 Restructuring Agreement, execution of Amendment No. 2 to the
1997 Restructuring Agreement is deemed to effect execution of this
Amendment No. 3.
AMENDMENT NO. 4 TO THE
EDISON-VERNON MEAD TRANSMISSION SERVICE AGREEMENT
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AMENDMENT NO. 4 TO THE
EDISON-VERNON MEAD TRANSMISSION SERVICE AGREEMENT
PARTIES° This Amendment No. 4 is entered into by and between the
City of Vernon, California ("Vernon"), a municipal corporation, and
Southern California Edison Company ("Edison"), a California corporation,
hereinafter sometimes referred to collectively as the "Parties" and
individually as a "Party."
RECITALS: This Amendment No. 4 is made with reference to the
following facts, among others:
2.1 Edison and Vernon entered into the 1997 Restructuring Agreement
on September 16, 1997. Section 6.3.2 of the 1997 Restructuring
Agreement provided Vernon with a one time right to convert
transmission losses under the Existing Transmission Contracts to
ISO transmission losses.
2.2 On March 20, 1998 Edison and Vernon entered into Amendment.
No 1 to the 1997 Restructuring Agreement.
2.3 Amendment No. 1 to the 1997 Restructuring Agreement amended
Section 6.3.2 of the 1997 Restructuring Agreement and the
Existing Transmission Contracts to provide that, for a one year
period starting on the Date of ISO Operations, transmission losses
under the Existing Transmission Contracts would be converted to
the ISO transmission loss methodology. Section 6.3.2 as amended
also provided that, at the end of the one year period, the Parties
would amend the Existing Transmission Contracts to restore the
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AMENDMENT NO.4 TO THE
EDISON-VERNON MEAD TRANSMISSION SERVICE AGREEMENT
previously existing transmission loss methodology and that Vernon
would thereafter have a one time right to convert the Existing
Transmission Contracts transmission loss methodology back to the
ISO transmission loss methodology on sixty days' written notice to
Edison.
2.4 By letter dated February 2, 1999 Vernon requested that the
transmission loss methodology in the Existing Transmission
Contracts be permanently converted to the ISO transmission loss
methodology. Therefore, the Parties wish to amend the Mead FTS
Agreement as set forth in this Amendment No. 4.
AGREEMENT: In consideration of the covenants and conditions herein
and other good and valuable consideration, the Parties agree as follows.
DEFINITIONS: Terms used herein with initial capitalization shall have
the meanings set forth in the 1997 Restructuring Agreement. Terms used
herein with initial capitalization that are not defined in the 1997
Restructuring Agreement shall have the meanings set forth in this
Section 4. The singular of any definition shall include the plural and the
plural shall include the singular.
4.1 1997 Restructuring Agreement: The Edison -Vernon 1997
Restructuring Agreement, on file with the Commission as Edison's
FERC Rate Schedule No. 359, as it may from time to time be
modified or superseded.
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AMENDMENT NO. 4 TO THE
EDISON-VERNON MEAD TRANSMISSION SERVICE AGREEMENT
4.2 Amendment No. 4: This Amendment No. 4 to the Mead FTS
Agreement.
4.3 Amendment No. 1 to the 1997 Restructuring Agreement:
Amendment No. 1 to the 1997 Restructuring Agreement on file
with the Commission as Edison's FERC Rate Schedule No. 359.2.
4.4 Amendment No. 2 to the 1997 Restructuring Agreement:
Amendment No. 2 to the Edison -Vernon 1997 Restructuring
Agreement to which this Amendment No. 4 is attached and
incorporated by reference as Attachment No. 2.
5 EFFECTIVE DATE: This Amendment No..4 shall be effective on the
effective date of Amendment No. 2 to the 1997 Restructuring Agreement.
6 AMENDMENT:
6.1 Section 4.16 of the Mead FTS Agreement is deleted in its entirety.
6.2 Section 7 of the Mead FTS Agreement is deleted in its entirety and
is replaced with the following:
"T TRANSMISSION LOSSES: Transmission losses shall
be as determined by the ISO in accordance with the ISO
Tariff methodology for determining transmission losses.
Vernon shall be responsible for paying for or providing to the
ISO transmission losses in accordance with the ISO Tariff."
7 Signature Clause: In accordance with Section 7 of Amendment No. 2 to
the 1997 Restructuring Agreement, execution of Amendment No. 2 to the
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AMENDMENT NO. 4 TO THE
EDISON-VERNON MEAD TRANSMISSION SERVICE AGREEMENT
1997 Restructuring Agreement is deemed to effect execution of this
Amendment No. 4.
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