Resolution No. 8604S
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RESOLUTION NO. 8604
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ESTABLISHING THE TRANSMISSION REVENUE
BALANCING ACCOUNT ADJUSTMENT IN ACCORDANCE WITH
VERNON'S TRANSMISSION OWNER TARIFF AND PROVIDING
FOR TARIFF SHEET CHANGES TO IMPLEMENT THE
ADJUSTMENT
WHEREAS, the City of Vernon is a Participating Transmission
Owner ("PTO") with the California Independent System Operator ("ISO")
and the Federal Energy Regulatory Commission ("FERC") has approved its
Transmission Owner Tariff ("TO Tariff"); and
WHEREAS, the City of Vernon TO Tariff provides for periodic
recalculation of the Transmission Revenue Balancing Account Adjustment
("TRBAA"), which is a ratemaking mechanism designed to ensure that all
Transmission Revenue Credits are flowed through to ISO transmission
customers; and
WHEREAS, on December 3, 2003, the City Council of the City of
Vernon adopted Resolution No. 8327 establishing the TRBAA and the City
made its TRBAA filing on December 8, 2003 in FERC Docket No. EL04-34;
and
WHEREAS, on February 5, 2004, the FERC accepted the City's
December 8, 2003 filing, effective January 1, 2004; and
WHEREAS, the Light & Power Department prepared a Staff Report
dated November 17, 2004 supporting a new TRBAA, along with TO Tariff
sheet changes to implement the new TRBAA effective January 1, 2005; and
WHEREAS, the City Council, in response to the February 17,
2004 FERC order in Docket No. EL00-105 on remand from the D.C. Circuit
of Appeals, through Resolution 8430, dated April 26, 2004, amended its
resolution 7659, dated November 7, 2000, to establish a base TRR of
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$12,253,797 to replace the $10,216,178 for all purposes, effective
January 1, 2001; and
WHEREAS, the replacement base TRR is currently subject to a
hearing process in Docket No. EL00-105 for FERC determination that when
Vernon's TRR is included in the ISO's rate, the ISO's rate is just and
treasonable; and
WHEREAS, a Notice of Public Hearing was posted on November
17, 2004, notifying all interested parties that a hearing to consider
evidence to establish Vernon's new TRBAA was scheduled for December 1,
2004, at approximately 5 p.m.; and
WHEREAS, by letter dated November 23, 2004, Bruce V.
Malkenhorst, City Administrator/City Clerk, recommended that the TRBAA
and Appendix I to the TO Tariff implementing the TRBAA be approved; and
WHEREAS, the ISO has provided the Light & Power Department
comments to Vernon's Net FTR Revenue that was incorporated into the
TRBAA calculation; and
WHEREAS, consistent with the comments received by the ISO the
Light & Power Department has prepared an amended Staff Report dated
December 1, 2004 with exhibits which determine the new TRBAA consistent
with the TO Tariff and support the TRBAA, along with TO Tariff sheet
changes to implement the new TRBAA effective January 1, 2005; and
WHEREAS, the City Council has heard and considered all
evidence, both written and oral, presented in consideration of the
establishment of Vernon's new TRBAA and amended Appendix I to the TO
Tariff implementing the new TRBAA.
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
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finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon further
finds that all persons have had the opportunity to be heard or to file
written comments to the proposed establishment of Vernon's new TRBAA
and amended Appendix I to the Vernon TO Tariff implementing the new
TRBAA, and after due consideration of any and all evidence submitted at
the public hearing determines that there are compelling reasons to
justify the establishment of Vernon's new TRBAA and an amended Appendix
I to the TO Tariff implementing the new TRBAA, a copy of which is
attached hereto as Exhibit "B" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
approves the establishment of Vernon's new TRBAA and amended Appendix I
to the TO Tariff implementing the new TRBAA (and footnoting the status
of Vernon's TRR), to be effective January 1, 2005, described in the
Light & Power Department Staff Report dated December 1, 2004, a copy of
which is attached hereto as Exhibit "A" and made a part hereof,
pursuant to the TO Tariff.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the submittal of Vernon's TRBAA, the amended Appendix I to
the Vernon TO Tariff and supporting documentation, such as the Amended
Staff Report and this City Council Resolution approving the new TRBAA,
to the FERC on behalf of the City of Vernon.
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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 1st day of December, 2004.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MAL.URG, Ma or
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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.
8604, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, December 1,
2004, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
- 5 -
EXHIBIT
0
CITY OF VERNON LIGHT & POWER DEPARTMENT
STAFF REPORT REGARDING THE ESTABLSHMENT OF A NEW
TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT
FOR CALENDAR YEAR 2005
AMENDED DECEMBER 1, 2004
Pursuant to Section 5.2 of the Vernon Transmission Owner ("TO") Tariff, the
City of Vernon updates its Transmission Revenue Balancing Account Adjustment
("TRBAA") annually. The TRBAA is a tariff mechanism designed to ensure that all
Transmission Revenue Credits ("TRCs") are flowed through to California
Independent System Operator Corporation ("ISO") transmission tariff customers via
annual update filings at FERC by Participating Transmission Owners ("PTO"). In
Appendix F, Schedule 3, Section 6.1(b), the California ISO Tariff describes the
annual TRBAA calculation as "... a dollar amount based on projected Transmission
Revenue Credits as adjusted for the true up of the prior year's difference between
projected and actual credits." This staff report supports the establishment of a new
TRBAA based on the requirements of the Vernon TO Tariff and the ISO Tariff. This
report also contains recommendations relating to the approval of amendments to
Appendix I of Vernon's TO Tariff. Further, the ISO has reviewed Vernon's
workpapers associated with calculating Net FTR Revenues.' This amended Staff
Report reflects the comments received by the ISO, a slight change to the interest
rate applied for the fourth quarter of 2003, and editorial changes made for proposes
of clarity. The amended result is an increase in FTR credits of $878. Vernon's Net
FTR Revenues will be about $0.70 higher than the ISO's figure, which appears to
contain rounding errors.
'An "FTR" is a Firm Transmission Right.
Staff Report
TRBAA 2005
Page 2 of 8
SUMMARY
Section 5.2 of the Vernon TO Tariff identifies the items to be reflected in the
TRBAA and sets forth the procedure for revising the TRBA on an annual basis, as
follows:
5.2 Transmission Revenue Balancing Account Adjustment
("TRBAA")
The Participating TO shall maintain a Transmission Revenue
Balancing Account ("TRBA") that will ensure that all Transmission
Revenue Credits and the refunds, specified in Sections 6 and 8 of
Appendix F, Schedule 3 of the ISO Tariff, flow through to transmission
customers.
The TRBAA shall be equal to: TRBAA = TRCF + TRCT+ I.
TRCF = The forecast of Transmission Revenue Credits for the
following calendar year.
TRCT = The balance representing the prior period difference between
the projected Transmission Revenue Credits and the actual credits.
= The interest balance for the TRBA, which shall be calculated using
the interest rate pursuant to Section 35.19(a) of FERC's regulations
under the Federal Power Act (18 CFR Section 35.19(a)). Interest shall
be calculated based on the average TRBA principal balance each
month, compounded quarterly.
Transmission Revenue Credits ("TRCs") are defined in Section 3.25 of the
Vernon TO Tariff as follows:
3.25 Transmission Revenue Credit. Collectively, 1) the sum of: a) all
Staff Report
TRBAA 2005
Page 3 of 8
revenues received by the Participating TO from the ISO for Wheeling
service, plus b) Usage Charge revenues received by the Participating
TO pursuant to Section 7.3.1.6(ii) of the ISO Tariff, plus c) Net FTR
Revenue received by the Participating TO; minus 2) any charges
attributable to the Participating TO (but not those attributable to the
FTR Holder) pursuant to ISO Tariff 7.3.1.7.
The TRBAA is based on the balance in the TRBA as of September 30 of the
current year, and a forecast of the TRCs expected to be received in the following
year. A summary of the elements of the Vernon TRBAA proposed to be effective
January 1, 2005 is shown in Exhibit 1. It shows that the balance in the Vernon
TRBA as of September 30, 2004, which reflects services rendered through June 30,
2004, is a credit of $90,982, including interest. TRCs are projected to be a credit of
$321,569. In addition, a credit of $13.03 is included to reflect the minor error in its
calendar year 2004 TRBAA calculation as required in the Docket No. EL04-34
Federal Energy Regulatory Commission ("FERC") letter order dated February 5,
2004, concerning Vernon's currently effective TRBAA. Taken together, these items
sum up to a TRBAA to be effective for the twelve months starting January 1, 2005 of
a credit, or negative, balance of $412,564.
All of the Vernon transmission facilities that are reflected in Vernon's
transmission rates and the TRBAA are high voltage facilities. Therefore, there is no
need to allocate TRCs, or other TRBAA components, between high voltage and low
voltage rates.
CALCULATION OF THE NEW TRBAA
The TRBAA is equal the sum of: TRCF + TRCT + I.
The balance in TRBA of a negative, credit of $ 90,982 as of September 30, 2004
represents the sum of the TRCT and the I components.
Staff Report
TRBAA 2005
Page 4 of 8
The TRCT Component of Vernon's TRBAA
TRCT represents a balance that reflects the difference for the prior period
between the projected TRCs and the actual credits. The prior period in this case is
the 12 month period starting October 1, 2003 and ending September 30, 2004.
A summary of the determination of the September 30, 2004 balance in the
Vernon TRBA is shown in Exhibit 2. The TRCT component reflects 1) the previously
projected 2003 TRCs for Vernon of $40,203, or $3,350 per month, for the months
October through December 2003, and 2) projected 2004 TRCs of $225,814, or
$18,818 per month, for the months January through September 2004—both
elements as reflected on Line No. 10 of Exhibit 2. Adjustments for actual payable
TRCs reflecting 1) congestion refunds payable to the TO, i.e., Vernon, 2) high
voltage wheeling revenue payable to the TO, and 3) Net FTR Revenue associated
with Firm Transmission Rights ("FTRs") that Vernon receives pursuant to Section
9.4.3 of the ISO Tariff are reflected in Lines 11-15 of Exhibit 2 and produce the
Under (Over) Collection figures —in this case, "over"— for the monthly payable TRC
balances reflected in Line 18 of Exhibit 2. These monthly balances are carried
forward from month to month in Line 18 of Exhibit 2. Interest is calculated monthly
(the I component) on the under (over) payment and is compounded quarterly into the
monthly payable TRC balances, pursuant to Section 5.2 of the Vernon TO Tariff.
The interest calculation for payable TRC balances is shown in Lines 20-24 of Exhibit
2.
The calculation of the Net FTR Revenue associated with FTRs that Vernon
receives pursuant to Section 9.4.3 of the ISO Tariff is discussed in more detail in the
concluding section of this report.
These payable TRC balances are then adjusted to reflect payment of TRC
revenues owed to Vernon from the period prior to 2004. These payments are
reflected in Lines 33-45 of Exhibit 2, under "Prior Period TRC Payment Received"
Staff Report
TRBAA 2005
Page 5 of 8
and are subtracted from the payable TRC balances at the end of the year. Prior
Period TRC Payments Received are developed in Exhibit 7.
Exhibit 7 shows the allocation of net ISO market invoice payments to the TRC
function. This allocation uses a ratio of the adjusted accrued TRCs reflected in each
month's ISO invoice to the net ISO invoice amount. These ratios are shown in
Column H of Exhibit 7 for each month for which invoices were not paid by the ISO
when due.
Interest is calculated monthly on the Prior Period TRC Payments balance and
is compounded quarterly into the monthly Prior Period TRC Payment balances. The
interest calculation for the monthly Prior Period TRC Payment balances is shown in
Lines 41-45 of Exhibit 2.
The I (Interest) Component of Vernon's TRBAA
As discussed above, the I component reflects interest on payable balances
and on payments for prior year TRCs. As provided in Section 5.2 of Vernon's TO
Tariff, monthly interest carrying costs are calculated using the 18 CFR § 35.19(a)
interest rates and calculation method. These interest rates, are published by the
FERC, and reflect the prime rate values published in the Federal Reserve Bank's
"Selected Interest Rates."
The calculation of interest is reflected in Exhibit 2 and is included as an
integral part of the calculation of the TRBA balance on September 30, 2004. It is not
reflected as a separate line item in Exhibit 1.
The TRCF Component of Vernon's TRBAA
The TRCF component of Vernon's TRBAA stands for the forecast of TRCs for
the following calendar year, in this case 2005. These forecast TRCs reflect
projected wheeling revenues, projected usage/congestion revenues Vernon receives
Staff Report
TRBAA 2005
Page 6 of 8
pursuant to Section 7.3.1.6(ii) of the ISO Tariff, and projected Net FTR Revenues for
2005.
Wheeling revenues, which correspond to ISO Charge Type 384, are projected
to be a credit of $144,518. Usage/congestion revenues Vernon receives pursuant to
Section 7.3.1.6(ii) of the ISO Tariff are projected to be zero. Net FTR Revenues,
which correspond to the hourly net of FTR revenues received under ISO Charge
Types 204 and 254 and charges paid under ISO Charge Types 203, 253, 255, 256,
are projected to be a credit of $177,052. These projections are shown in Exhibit 3.
These projections are based on the accruals for services provided during the
twelve-month period ending'June 30, 2004, which are reflected in the ISO's invoices
to Vernon through September 30, 2004. A summary of the monthly accruals to
these Charge Types for the twelve months ending September 30, 2004 is shown in
Exhibit 4.
The determination of Net FTR Revenues is pursuant to the December 23,
2003 settlement agreement among the City of Vernon, California ("Vernon"), the
ISO, and others in FERC Docket No. EL02-103. The settlement requires Vernon to
credit hourly Net FTR Revenues from Section 9.4.3 FTRs that Vernon receives
during the Transition Period against Vernon's TRBA, for the period beginning July 1,
2002. For the prior period, all revenues associated with Vernon's Section 9.4.3
FTRs were properly excluded from Vernon's TRBAA, as expressly then provided in
Vernon's TO Tariff, and as provided in Section 1.1 of the Docket No. EL02-103
settlement.
Accordingly, Vernon's Net FTR Revenue is calculated as follows:
Revenue received by a PTO from the sale, auction, transfer of the FTRs provided to
it pursuant to Section 9.4.3; plus
Staff Report
TRBAA 2005
Page 7 of 8
For each hour, the greater of zero or the hourly net quantity determined as follows:
a) The usage charge revenue received by the PTO associated with its Section
9.4.3 FTRs (that portion of Charge Types 204 and 254 which is associated
with Vernon's Section 9.4.3 FTRs); Minus,
b) Usage charges that are: i) incurred by the Scheduling Coordinator ("SC") for
the PTO under ISO Tariff 7.3.1.4, ii) associated with the PTO's Section 9.4.3
FTRs, and iii) incurred by the PTO for its (i.e., Vernon's) energy transactions,
but not incurred as a result of the use of the transmission by a third -party.
Charges that are deducted under this sub -section are: hour ahead inter -zonal
congestion debit due PTO, that part of Charge Type 255 which is applicable
to FTR Holders (ISO Tariff Section 7.3.1.7(1)), day ahead inter -zonal
Congestion Charge due SC (Charge Type 203) (ISO Tariff Section 7.3.1.4),
and hour ahead inter -zonal congestion charge due SC (Charge Type
253)(ISO Tariff Section 7.3.1.4), up to Vernon's Section 9.4.3 FTR entitlement
on the path; Minus,
c) The charges paid by the PTO pursuant to ISO Tariff Section 7.3.1.7, to the
extent such charges are paid by the SC of the PTO on congested inter -zonal
interfaces that are associated with the Section 9.4.3 FTRs provided to the
PTO. The Charge Type that is deducted under this paragraph is hour ahead
inter -zonal congestion debit to SC (Charge Type 256) (ISO Tariff Section
7.3.1.7 (2)), up to Vernon's Section 9.4.3 FTR entitlement on the path.
Exhibit 5 summarizes this Net FTR Revenue calculation for invoices received
by Vernon during the twelve-month period ending September 30, 2004 by revenue
type and Charge Type classifications. Exhibit 5 shows $293,213 of revenues
attributable to ISO Charge Types 204 and 254 and $116,161 of hourly net charges
attributable to ISO Charge Types 203, 253, 255, and 256. (The underlying hourly
gross charges attributable to ISO Charge Types 203, 253, 255, and 256 are shown
as $142,392.)
Staff Report
TRBAA 2005
Page 8 of 8
Exhibit 6 breaks the total FTR revenues and total charges shown in Exhibit 5
down into monthly amounts by ISO Charge Type.
VERNON BASE TRR
The City Council, in response to the February 17, 2004 FERC order in Docket
No. EL00-105 on remand from the D.C. Circuit Court of Appeals, through Resolution
8430, dated April 26, 2004, amended its Resolution 7659, dated November 7, 2000,
to establish a base TRR of $12,253,797 to replace the $10,216,178 for all purposes,
effective January 1, 2001. This replacement base TRR is currently subject to a
hearing process in Docket No. EL00-105 for FERC determination that when
Vernon's TRR is included in the ISO's rate the ISO's rate is just and reasonable.
The TRBAA filing for 2005 should be independent of the City Council's April 26,
2004 actions on the base TRR and independent of the matters subject to ongoing
Litigation in Docket No. EL00-105. Nevertheless, because the revised TRBAA
appears on the same tariff sheet, staff recommends adding a footnote to explain that
the City Council's April 26, 2004 actions govern the base TRR.
RECOMMENDATIONS
1. Approve the newly calculated TRBAA of a negative $412,564.
2. Approve replacing the existing TRBAA of negative $225,814 with the new
TRBAA for 2005 of a negative $412,564.
3. Approve the attached revised Appendix I of Vernon's TO Tariff reflecting the
TRBAA of'negative $412,564 and an addition of a footnote explaining the
status of the base TRR, i.e., as approved in Resolution 8430.
4. Approve the submission of Vernon's TRBAA, and supporting documentation,
such as this Staff Report and the City Council Resolution approving the new
TRBAA, to the FERC.
Staff Report
TRBAA 2005
Exhibit 1
A B C
D E F
G H
1
j
- -'
CITY OF VERNON
3
4
TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT (TRBAA)
5
6
CALENDAR YEAR 2005
DESCRIPTION
---- -
Balance in TRBA on September 3
TOTAL'
7
9
10
including interest
Forecast Transmission Revenue Credits
($321,569)
11
12
13
--- -----
- --
2004 TRBAA — Adjustment
--
_ ($13.03)
14
15
16
TRBAA- ~ - - - —
j I
($412,564)
19----
--- —
20
Source: i _
r
- --
21
Line 9 I Exhibit 2, Column-- - N, Line No.53.- - '; -
- - - - -- -- --- -
22
23
_
Line 12 Exhibit 3, Column E, Line No.23.
Line 14 Per February 5, 2004 letter from the Director of FERC Division of Tariffs
and Market.
2427
- -
--
25
26
—
---
TR BAA-05(11302004) 12/1 /2004
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Staff Report
TRBAA 2005
Exhibit 3
A
B I
C
D
E
1
CITY OF VERNON
2
FORECAST TRANSMISSION CREDITS
3
4
MONTH
January-05
FeMaa h-05
--_
April-05
for Calendar Year 2005 TRBAA
--
Wheeling',
($12,043.13)'
($ 12 0431 .3) -
- - �-
- - - -- ($12,043.13)!,
---
NET FTRI
- ($14,754.32)
'
- ($14 754_32)
($14,754.32)
Total
j ($26,797.45)
($26,797 45)
- ($26,797.45)
($26,797.45)
6
7
8
10
11
13
May-05'
June-05'
Jul 05
_ y
Au9ust-05
($12,043.13) -
--_ -- ($12,043.13)($14,754.32).
--- ($12,043.13)
- -- ($12,043.13) _ --
-($14,754.32)
- ($14,754.32)
($14,754.32)
($26,797.45)
- ($26,797.45)
($26,797.45)
($26,797.45)
14
15
16
September-05;
($12
754.32)',
($26,797.45)
17
18
October-05
Novembe 0
($12,043.13)
($12,043.13)
($14,754.32)
($14 754.32),
($26,797.45)
($26, 797.45)
19
December-05-
($12,043.13)
($14,754.32)'
($26,797.451
Total
- — -
($144,517.60)1
-($177,051.79):
_
($321,569.39)
--
-
21
22
23
[2g451—
TRBAA-05(11302004) 12/1 /2004
Staff Report
TRBAA 2005
Exhibit 4
A I B I C D I E F
1 Vernon Historical Transmission Credits
2 for Calendar Year 2005 TRBAA
Wheeling Revenues
ISO INVOICE
ISO INVOICE
Month
CT 384
CT 3384
(Cash Basis)
Final
Total
October-03
(30,165.77)
($30,165.77)
November-03
(17,946.87)
($17,946.87)
December-03
(17,102.96)
($17,102.96)
January-04
(9,578.35)
($9,578.35)
February-04
(8,247.69)
$1,480.38
($6,767.31)
March-04
(17,779.69)
($17,779.69)
April-04
(10,813.18)
$1,042.70
($9,770.48)
May-04
(7,267.44)
($7,267.44)
June-04
(5,605.27)
($5,605.27)
July-04
(4,459.92)
($4,459.92)
August-04
(9,038.62)
($9,038.62)
September-04
(10,301.51)
$1,266.59
($9.034.92)
($144.517.60)
PTO Charges/
(Credits)
(Cash Basis)
CT 255
CT 204
CT 254
October-03
$0.00
$0.00
$0.00
November-03
$0.00
$0.00
$0.00
December-03
$0.00
$0.00
$0.00
January-04
$0.00
$0.00
$0.00
February-04
$0.00
$0.00
$0.00
March-04
$0.00
$0.00
$0.00
April-04
$0.00
$0.00
$0.00
May-04
$0.00
$0.00
$0.00
June-04
$0.00
$0.00
$0.00
July-04
$0.00
$0.00
$0.00
August-04
$0.00
$0.00
$0.00
September-04
$0.00
0.00
0.00
$0.00
$0.00
$0.00
Net FTR: SUM(CT 204,CT 254,CT 203, CT 253,CT255, CT 256)
( Sum of Hourly Net FTR Revenue that is greater than zero )
(Cash Basis)
October-03
($8,785.33)
November-03
($10,607.85)
December-03
($6,631.64)
January-04
($9,530.46)
February-04
($621.06)
March-04
($9,769.81)
April-04
($11,652.13)
May-04
($6,526.37)
June-04
($20,635.96)
July-04
($2,874.47)
August-04
($8,838.96)
September-04
($80.577.74)
($177.051.79)
TR BAA-05(11302004) 12/1 /2004
Staff Report
TRBAA 2005
Exhibit 5
A
B C
D
E F
2
Net Transmission- - FTR Revenue Break-out
3
4
for Calendar Year 2005 TRBAA
5
6
Charge Type
_
Total Amount'
Amount
after hour)
Netting)
7
8
Revenues
9
-
CT 204 and CT 254 ($293,212.82)__
- --
($293,212.82)
_ - - -
11
12
Charges
CT 203
-- -
- - --- $117,973.86
---- - -�-- --
13
CT 253
! $8,291.73,
14
CT 255
j $536.39
-
15
16
CT 256
- ----
_ $15,590.061;
- — $142,392.04
$116,161.03,-
17
-- -->
-- -
18
Net FTR
_ ($150,820.78)
($177,051.79)
19
- -
20
22
23
-- --
TRBAA-05(11302004) 12/1 /2004
Staff Report
TRBAA 2005
Exhibit 6
A j
B
C
D
E
F
G
1
Month
Net Transmission FTR Revenues Monthly Detail
for Calendar Year 2005 TRBAA
CT 203 CT 204 CT 253 CT 254 CT 255
CT 256
2
3
4
5 1
6
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Total
$2,493
$1,624
$974
$0
$18
$8,575
$250
$1,320
$751
$5,224
$13,405
$83,339
$117.974
($8,063)
($7,209)
($5,820)
($4,883)
($407)
($14,084)
($2,319)
($6,977)
($18,440)
($6,536)
($T5,999)
($162,212)
�, 252.9491
$2,739
$0
$0
$0
$0
$0
$0
$20
$1,467
$4,066
$0
$0
($4,052)
($5,468)
($1,796)
($4,648)
($231)
($3,181)
($9,583)
($933)
($3,619)
($1,821)
($3,223)
($1,708)
l$40.2631
$0
$98
$10
$0
$0
$0
$0
$44
$0
$321
$59
$4
5
$2,362
$807
$0
$10
$0
$0
$0
$1,134
$0
$5,858
$5,344
$76
15.590
7
8
9
10
11
12
13
14
15
16
17
18
19
20
TRBAA-05(11302004) 12/1 /2004
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Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $10,216,178.t
The TRBAA is a negative $412,564 for the 12-month period effective January 1, 2005.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational
Control are High Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff, approved by the
Vernon City Council, and provided to the ISO.
'However, the City of Vernon, in response to the February 17, 2004 Federal Energy Regulatory
Commission ("FERC") order in Docket No. EL00-105 on remand from the D.C. Circuit Court of Appeals,
through Resolution 8430, dated April 26, 2004, amended its Resolution 7659, dated November 7, 2000, to
establish a base TRR of $12,253,797 to replace the $10,216,178 for all purposes, effective January 1, 2001.
This replacement base TRR is currently subject to a hearing process in Docket No. EL00-105 for FERC
determination that when Vernon's TRR is included in the CAISO's rate, the CAISO's rate is just and
reasonable.
Authorized by City of Vernon
Ordinance No. 940
Issued on: December 1, 2004
Resolution No. 8604 Effective: January 1, 2005
Fourth Revised Sheet No. 22
Superseding Third Revised Sheet No. 22
EXHIBIT
Transmission OwnerTariff (coot.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $10,216,178.1
The TRBAA is a negative $412,564 for the 12-month period effective January 1, 2005.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational
Control are High Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff, approved by the
Vernon City Council, and provided to the ISO.
'However, the City of Vernon, in response to the February 17, 2004 Federal Energy Regulatory
Commission ("FERC") order in Docket No. EL00-105 on remand from the D.C. Circuit Court of Appeals,
through Resolution 8430, dated April 26, 2004, amended its Resolution 7659, dated November 7, 2000, to
establish a base TRR of $12,253,797 to replace the $10,216,178 for all purposes, effective January 1, 2001.
This replacement base TRR is currently subject to a hearing process in Docket No. EL00-105 for FERC
determination that when Vernon's TRR is included in the CAISO's rate, the CAISO's rate is just and
reasonable.
Authorized by City of Vernon
Ordinance No. 940
Issued on: December I, 2004
Resolution No. 8604 Effective: January I, 2005
Fourth Revised Sheet No. 22
Superseding Third Revised Sheet No. 22
SUPPORTING
DOCUMENTS
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hearing which
you may attend.
PLACE: Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
DATE AND TIME: Wednesday, December 1, 2004, at 5:00
p.m., or as soon thereafter as the
matter may be heard
PURPOSE: To consider evidence to establish
Vernon's new Transmission Revenue
Balancing Account Adjustment for its
high voltage (over 200 kV) transmission
facilities and entitlements (all
located outside the City) pursuant to
Vernon's Transmission Owner Tariff
Any interested person may attend and may make an oral
presentation to the City Council at the time of the
hearing, or may present written comments prior to the
hearing.
If you challenge the approval of the establishment of
Vernon's new Transmission Revenue Balancing Account
Adjustment or any provision thereof in court, you may be
limited to raising only those issues you or someone else
raised at the hearing described in this notice or in
written correspondence delivered to the City of Vernon at,
or prior to, the meeting.
Information may be obtained by contacting the office
of the City Clerk at the above address.
The hearing may be continued or adjourned to a stated
time and place without further notice of a public hearing.
Dated: November 17, 2004
BRUCE V. MALKENHORST,
City Administrator/City Clerk
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss
CITY OF VERNON )
I, Sharon Johnson, Deputy City Treasurer, of the City of Vernon do
hereby certify that I did, on the 17th of November 2004, post two (2)
copies of:
Notice of Public Hearing - To consider evidence to establish
Vernon's new Transmission Revenue Balancing Account Adjustment
for its high voltage (over 200 kV) transmission facilities and
entitlements (all located outside the City) pursuant to Vernon's
Transmission Owner Tariff.
On each of the following places, to wit: at the northwest corner of
38th Street and Santa Fe Avenue and the northeast corner of Leonis
Blvd. and Pacific Blvd., all in said City, there being no newspaper of
general circulation printed and published in the City of Vernon.
Date: -__ � 9&nL- -
Sharon Jo s n
Deputy City Treasurer
State of California )
) ss
County of Los Angeles)
On ,I - 2WL5 before me, �"' Or, LC�► t,f' O(
Notary Public
personally appeared �cLrm
Personally known to me (or known to me on the basis of satisfactory
evidence) to be the person(' whose name(R-is/ar-e subscribed to the
within instrument and acknowledged to me that ire/she/ttrefy executed the
same in 4i-sf her/ter authorized capacity, and that by leis/her/tire r
signature >? on the instrument the person,(-e), or the entity upon
behalf of which the person � acted, executed the instrument.
WITNESS my hand and official seal
GLOM MOLLEQA
Commfsion # 14=13
14AIMV
�Milo
Y PuM - COM
Los AngMn Cou*
Comm. Ex a Ap ZM4
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss
CITY OF VERNON )
I, Gloria Molleda, Deputy City Clerk, of the City of Vernon do hereby
certify that I had, on the 17th of November 2004, posted one (1) copy
of:
Notice of Public Hearing - To consider evidence to establish
Vernon's new Transmission Revenue Balancing Account Adjustment
for its high voltage (over 200 kV) transmission facilities and
entitlements (all located outside the City) pursuant to Vernon's
Transmission Owner Tariff.
At the following place, to wit: on the bulletin board in the lobby of
the City Hall of the City of Vernon located at 4305 Santa Fe Avenue,
in said City, there being no newspaper of general circulation printed
and published in the ity of Vernon.
'6, n i ZW4 Ja
Date:
Gloria Molleda
Deputy City Clerk
State of California )
)ss
County of Los Angeles)
On 1AqCAAg&r `-J 1 before me,
Notary Public
personally appeared Q-10 �-q "k�eckQ
Personally known to me (or known to me on the basis of satisfactory
evidence) to be the person (,W� whose name (gI is/ft--r�► subscribed to the
within instrument and acknowledged to me that he/she/they executed the
same in h+s—/her/t. -rr authorized capacity, and that by hrs/her/t+rerir
signature(oT on the instrument the person(, or the entity upon
behalf of which the person4efi acted, executed the instrument.
WITNESS my hand and official seal
E
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