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Resolution No. 8709 . . ~ 1 2 3 4 5 6 RESOLUTION NO. 8709 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ADOPTING RATE SCHEDULES TOU-I REGARDING ELECTRICAL RATES TO BE CHARGED FOR ELECTRICAL ENERGY DISTRIBUTED AND SUPPLIED BY THE CITY WITHIN ITS BOUNDARIES 7 WHEREAS, the City Council of the City of Vernon adopted 8 Ordinance No. 1030 on May 16, 1995, providing that rates to be charged 9 for ~lectrical energy distributed and supplied by the City within its 10 boundaries shall be set by resolution; and 11 WHEREAS, from time to time the City Council has by Resolution 12 established and amended certain rate schedules for electrical users in 13 the City; and 14 WHEREAS, the City of Vernon finds it necessary to establish 15 a general service large interruptible rate; and 16 WHEREAS, by letter dated March 31, 2005, Bruce V. 17 Malkenhorst, City Administrator/City Clerk, recommended that a new 18 schedule be approved that is optional for all customers eligible for 19 service under Schedule TOU-V who commit to curtail at least 50% of such 20 customers maximum demand, which shall not be less than 5,000 kW per 21 period of interruption; and 22 WHEREAS, the proposed electric rates are to be effective on 23 April 1, 2005, on a case-by-case basis. 24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 25 CITY OF VERNON AS FOLLOWS: 26 SECTION 1: The City Council of the City of Vernon hereby 27 finds and determines that the recitals contained hereinabove are true 28 and correct. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~ 1 SECTION 2: The City Council of the City of Vernon hereby 2 adopts Rate Schedule TOU-I as the City's rates for the distribution of 3 electrical energy supplied by the City for certain classes of service 4 to be effective April 1, 2005, a copy of which is attached hereto as 5 Exhibit "A" and made a part hereof. 6 SECTION 3: All resolutions, or parts of resolutions not 7 consistent with or in conflict with this resolution are hereby 8 repealed. 9 SECTION 4: The City Clerk of the City of Vernon shall 10 certify to the passage of this resolution, and thereupon and 11 thereafter the same shall be in full force and effect. 12 APPROVED AND ADOPTED this 13th day of April, 2005. ~Ck~. /' EONIS C. MA BURG, Mayor .,--- ATTEST: ~/~ BRUCE V. MALKENHORST, City Clerk - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8709, was duly adopted by the City Council of the City of Vernon at a special meeting of the City Council duly held on Wednesday, April 13, 2005, and thereafter was duly signed by the Mayor of the City of Vernon. BRUCE V. MALKENHORST, (SEAL) - 3 - EXHIBIT A '. ~ DRAFT CITY OF VERNON LIGHT AND POWER DEPARTMENT Schedule No. TOU-I GENERAL SERVICE-LARGE INTERRUPTIBLE APPLICABILITY This schedule is optional for all customers eligible for service under Schedule TOU-V who commit to curtail at least 50 percent of such customers maximum demand, which shall not be less than 7,500 kW per Period of Interruption. In addition, the following conditions shall apply: 1. Service Voltage must be greater than 50 kV; and 2. The customer's Maximum Demand must be 12,500 kW or above; and 3. This schedule is in effect until suspended by the Light & Power Department when in their judgment there is no additional need for Interruptible Demand. TERRITORY Within the city limits of the City of Vernon. RATES All charges and provisions of schedule TOU- V shall apply as follows: In accordance with the terms and conditions of this schedule the customer's bill will be credited $2.00 per kW month for all kW in excess of the customer's specified Fiml Demand Level. The bill credit will be based on the difference between the customer's on-peak Maximum Demand recorded during the monthly billing period and the customer's specified Firm Demand Level. I Charges for Excess Demand may apply under certain conditions, as provided in special condition 8. DRAFT SPECIAL CONDITIONS 1. Interruptible Demand: The Interruptible Demand shall be the measured difference between the customer's demand, at the time of interruption, and the customer's Firm Demand Level. 2. Firm Demand Level: The Firm Demand Level is the Maximum Demand the Department is expected to supply during a Period of Interruption. 3. Excess Demand: The Excess Demand shall be the measured demand which exceeds the Firm Demand Level during each Period of Interruption. 4. Interruptible Service Agreement: To receive interruptible service under this schedule a customer shall sign an agreement for a specified term and Firm Demand Level. Eligible customer shall comply with all the provisions of the Agreement. 5. Notice of Interruption: The Department will give the customer a minimum 30 minutes notice of a Period of Interruption to enable the customer to disconnect the necessary load to prevent Excess Demand. Communication procedures shall be specified in the Interruptible Service Agreement. 6. Period of Interruption: A Period of Interruption shall be an interval which commences thirty minutes after Notice of Interruption and which ends upon notification from the Department. During which the customer will be required to disconnect sufficient load to reduce the demand on the system to the Firm Demand Leyel. A Period of Interruption can occur: a. Upon the notification from the Independent System Operator (ISO) requiring the Department to shed load. b. Upon the unscheduled outage of the Malburg Generating Station or any other generating unit internal to the Department system. 7. Frequencies and Duration of Interruption: The Periods of Interruption will not exceed ten per month or twenty-four per year. 8. Excess Demand Charge: Upon the first occurrence of Excess demand during a period of interruption, such excess demand shall be billed at $4.00 per kW. Upon the second occurrence of Excess demand during a Period of Interruption, such excess demand shall be billed at $6.00 per kW. ... "" "....10.- .. '. w__ ~ DRAFT Upon the third occurrence of Excess demand during a Period of Interruption, within the same 12-month period, the customer will be disqualified from further interruptible rate service. 9. Verification of Ability to Interrupt: Interruptible Rate Service customers shall periodically be required to demonstrate ability and willingness to disconnect all load except the specified Firm Demand Level within a Notice of Interruption Period. Testing procedures for such verification shall be specified in the Interruptible Service Agreement terms.