Resolution No. 82711
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RESOLUTION NO. 8271
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
TRANSMISSION CONTROL AGREEMENT AMONG THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR CORPORATION AND THE
PARTICIPATING TRANSMISSION OWNERS AND PROSPECTIVE
NEW PARTICIPATING TRANSMISSION OWNERS
WHEREAS, AB 1890 adopted by the California state legislature
on or about September 23, 1996 provided for the restructuring and
deregulation of the electric industry in the State of California,
created the California Independent System Operator ("ISO")'to control
the scheduling and access to electric transmission facilities to
implement the development of a competitive generation market, and
required the ISO to file a Transmission Access Charge ("TAC") tariff
with the Federal Energy Regulatory Commission ("FERC") to establish
TACs for high voltage transmission service within the State of
California; and
WHEREAS, the City of Vernon is located within the ISO control)
area, is a customer of the ISO and owns and operates a system for the
generation, transmission, and purchase of electric capacity and energy
and for the distribution, sale, and use of such electricity within its
community; and
WHEREAS, on June 30, 2000, Vernon provided its notice of
intent to become a Participating Transmission Owner ("PTO") on
January 1, 2001, in accordance with the tariff, which action was
ratified by Resolution No. 7574 adopted on July 11, 2000; and
WHEREAS, on August 1, 2000, as amended on August 31, 2000,
Vernon filed its application for PTO status with the ISO in accordance
with the ISO Tariff, which action was approved by Resolution No. 7582
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WHEREAS, by letter dated August 21, 2003, Bruce V.
Malkenhorst, City Administrator/City Clerk, has recommended that a
revised TCA be approved and executed.
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 hereby
Ifinds'and determines that the recitals contained hereinabove are true
land correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the revised TCA to add Trans -Elect as a new PTO and to
incorporate its Appendix A, a copy of which is attached hereto as
Exhibit "A" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute the revised TCA in
counterparts for, and on behalf of, the City of Vernon.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send 20 executed signature
1pages of the revised TCA to:
Roni Reese, Contracts
California ISO
151 Blue Ravine Road
Folsom, CA 95630
SECTION 5: 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.
APPROVED AND ADOPTED this 27th day of August, 2003.
ATTEST: LEONIS C. MALB RG, May r
BRUCE V. MALKENHORST, City Clerk
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(STATE OF CALIFORNIA )
) Ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8271, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
August 27, 2003, and thereafter was duly signed by the Mayor of the
City of Vernon.
BRUCE V. MALKENHORST, City Clerk
(SEAL)
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EXHIBIT
0
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION
FERC ELECTRIC TARIFF NO.7
SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Original Sheet No.103A
Appendix A
Trans -Elect NTD Path 15, LLC
Transmission Entitlements
Path 15 Proiect Facilities
Trans -Elect NTD Path 15, LLC is a participant in the Path 15 Upgrade Project, which will
consist of a new, single, 83-mile, 500-kilovolt (kV) transmission line and associated substation
facilities extending between the PG&E Los Banos Substation in the California Central Valley
(the northern terminus of the Project) and the Gates Substation (the southern terminus of the
Project), including modifications at the. substations to connect the line as well as
reconfigurations to the Gates — Midway 230-kV line and the 115 kV line north of Midway.
Voltage support facilities will also be added at the Los Banos and Gates Substations as part of
the Project. Trans -Elect NTD Path 15, LLC will own Entitlements to certain capacity on the
Path 15 Project Facilities.
Trans -Elect will provide the funding for the development of the Transmission Line and
Land acquisition for the Path 15 Upgrade Project (Project), as well as funding for the ongoing
operation and maintenance of the transmission line and will, as a result, be granted Entitlements
to capacity on the Path 15 Upgrade Project.
Under the terms of the Letter Agreement (LA) approved by the Federal Energy
Regulatory Commission and under the provisions of the Construction and Coordination
Agreement (CCA) entered into by the Path 15 Upgrade Project participants, each participant will
receive an allocation of Entitlement and the associated Transmission System Rights in the
Project proportional to each party's contribution to the Project (save for a specified allocation to
Western Area Power Administration — Sierra Nevada Region ("WAPA-SNR") that shall be no
less than 10% of the Project). The initial allocation of Entitlements to Trans -Elect NTD Path 15,
LLC is as follows:
Allocation 72%
Capacity 1,080 MW (Based on an estimate of 1,500 MW)
The LA and CCA further provide that a final allocation of Entitlements will be determined
based on the ratio of the contribution made by Trans -Elect NTD Path 15, LLC to the Project
relative to the contributions of other Project participants. Each Path 15 Upgrade Project
participant will provide the Coordination Committee and the other Parties with a final accounting
of the Project Costs within 180 days after the commencement of the commercial operations to
determine the final allocation of Entitlements pursuant to the provisions of the LA and Section
15.4 of the CCA. Trans -Elect NTD Path 15 shall also provide a copy of the final accounting to
the ISO. The allocation of Entitlements set forth in this Appendix A is a preliminary estimate of
the Entitlements to be granted to Trans -Elect NTD Path 15, LLC and will be amended following
a final accounting for the Project, if applicable.
Issued by: Anthony Ivancovich, Senior Regulatory Counsel
Issued on: August 15, 2003 Effective: Upon notice after January 1, 2004
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro—Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
City Council
City of Vernon
Honorable Members:
1
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
August 21, 2003 n�
The Utilities Department is requesting for approval and execution of
the new Transmission Control Agreement Among the Independent System
Operator and Participating Transmission Owners to include Appendix A
(Trans -Elect NTD Path 15, LLC). This has been reviewed by the Federal
Energy Regulatory Commission and our Legal Consultant.
It is hereby recommended that the new Transmission Control Agreement
Among the Independent System Operator and Participating transmission
Owners be approved and executed.
Very truly yours,
Bruce V. Malkenhorst
City Administrator/City Clerk
BVM/gm
W11
August 19, 2003
TO: Bruce V. Malkenhorst, City Administrator
FROM: Kenneth J. DeDario, Director of Utilities ! `e
SUBJECT: Transmission Control Agreement
I recommend approval of the attached Appendix A for Trans -Elect NTD Path 15, LLC
(Trans -Elect) to the Transmission Control Agreement (TCA) Among The Independent
System Operator (ISO) And Participating Transmission Owners (PTO). This Appendix A
is necessary in order to include Trans -Elect as a signatory to the TCA. The TCA
provides for the turning over of operational control of the PTO's transmission facilities to
the ISO and sets out the rights and obligations of the ISO and the PTO's.
Trans -Elect has executed the existing TCA with the exception of adding the appropriate
Appendix A for their proposed transmission project. The new TCA will not go into
effect until:
• The ISO accepts the operational control and Trans -Elect's entitlement shown
I Appendix A and
• the approval by the Federal Energy Regulatory Commission of Trans -Elect's
To Tariff and Transmission Revenue Requirement. Q
Appendix A has been reviewed by FERC Counsel and the Legal Consultant._.
f�
If you have any questions or comments, please contact me. Thank you for your
consideration.
KJD:dm
Attachment
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION
FERC ELECTRIC TARIFF NO.7
SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Original Sheet No.103A
Appendix A
Trans -Elect NTD Path 15, LLC
Transmission Entitlements
Path 15 Project Facilities
Trans -Elect NTD Path 15, LLC is a participant in the Path 15 Upgrade Project, which will
consist of a new, single, 83-mile, 500-kilovolt (kV) transmission line and associated substation
facilities extending between the PG&E Los Banos Substation in the California Central Valley
(the northern terminus of the Project) and the Gates Substation (the southern terminus of the
Project), including modifications at the substations to connect the line as well as
reconfigurations to the Gates — Midway 230-kV line and the 115 kV line north of Midway.
Voltage support facilities will also be added at the Los Banos and Gates Substations as part of
the Project. Trans -Elect NTD Path 15, LLC will own Entitlements to certain capacity on the
Path 15 Project Facilities.
Trans -Elect will provide the funding for the development of the Transmission Line and
Land acquisition for the Path 15 Upgrade Project (Project), as well as funding for the ongoing
operation and maintenance of the transmission line and will, as a result, be granted Entitlements
to capacity on the Path 15 Upgrade Project.
Under the terms of the Letter Agreement (LA) approved by the Federal Energy
Regulatory Commission and under the provisions of the Construction and Coordination
Agreement (CCA) entered into by the Path 15 Upgrade Project participants, each participant will
receive an allocation of Entitlement and the associated Transmission System Rights in the
Project proportional to each party's contribution to the Project (save fora specified allocation to
Western Area Power Administration — Sierra Nevada Region ("WAPA-SNR") that shall be no
less than 10°% of the Project). The initial allocation of Entitlements to Trans -Elect NTD Path 15,
LLC is as follows:
Allocation 72%
Capacity 1,080 MW (Based on an estimate of 1,500 MW)
The LA and CCA further provide that a final allocation of Entitlements will be determined
based on the ratio of the contribution made by Trans -Elect NTD Path 15, LLC to the Project
relative to the contributions of other Project participants. Each Path 15 Upgrade Project
participant will provide the Coordination Committee and the other Parties with a final accounting
of the Project Costs within 180 days after the commencement of the commercial operations to
determine the final allocation of Entitlements pursuant to the provisions of the LA and Section
15.4 of the CCA. Trans -Elect NTD Path 15 shall also provide a copy of the final accounting to
the ISO. The allocation of Entitlements set forth in this Appendix A is a preliminary estimate of
the Entitlements to be granted to Trans -Elect NTD Path 15, LLC and will be amended following
a final accounting for the Project, if applicable.
Issued by: Anthony Ivancovich, Senior Regulatory Counsel
Issued on: August 15, 2003 Effective: Upon notice after January 1, 2004
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
California ISO
151 Blue Ravine Road
Folsom, CA 95630
Attn: Roni Reese, Contracts
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
September 18, 2003
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
Re: Twenty (20) executed signature pages of the revised TCA
Dear Mr. Reese:
Transmitted herewith are the above referenced pages approved by the
Vernon City Council on August 27, 2003, and executed on September 18,
2003.
If you have any questions regarding this matter, please call Mr.
Kenneth DeDario at (323) 583-8811 ext. 211.
Very truly yours,
4Chief
ro/co
eputyy Clerk
GJO/gm
CC: Kenneth DeDario
1ution No. -8271