Resolution No. 8878
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7 WHEREAS, AB 1890 adopted by the California state legislature
RESOLUTION NO. 8878
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
METERED SUBSYSTEM AGREEMENT BY AND BETWEEN THE CITY
OF VERNON AND THE CALIFORNIA INDEPENDENT SYSTEM
OPERATOR
8 on or about September 23, 1996, provided for the restructuring and
9 deregulation of the electric industry in the State of California and
10 created the California Independent System Operator ("ISO") to control
11 the scheduling and access to electric transmission facilities to
12 implement the development of a competitive generation market; and
13 WHEREAS, the City of Vernon is located within the ISO control
14 area, is a customer of the ISO, is directly interconnected to the SCE
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Distribution System, is interconnected to the ISO Controlled Grid
through the Laguna Bell-Vernon Interconnection Service Agreement and
owns and operates a system for the generation, transmission, and
purchase of electric capacity and energy for the distribution, sale,
and use of such electricity within its community; and
WHEREAS, on March 2, 1999, the City Council of the City of
Vernon adopted Resolution No. 7278 approving, among other things, an
ISO Meter Service Agreement for Scheduling Coordinators and amendments
thereto; and
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WHEREAS, the City of Vernon and the ISO desire to enter into
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an agreement to establish the terms and conditions under which Vernon
will operate its Generating Units within the ISO Control Area,
schedule transactions within the ISO Control Area, participate in the
ISO's markets and establish terms and conditions under which both
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1 parties will meet their obligations under the ISO Tariff; and
2 WHEREAS, the City Council of the City of Vernon has
3 determined that, pursuant to the provisions of subsection (a) of
4 Section 2.27 of the Vernon City Code, it is in the public interest and
5 necessity to enter into an agreement with the ISO.
6 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
7 CITY OF VERNON AS FOLLOWS:
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SECTION 1:
The City Council of the City of Vernon hereby
9 finds and determines that the recitals contained hereinabove are true
10 and correct.
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SECTION 2:
The City Council of the City of Vernon hereby
12 approves the Metered Subsystem Agreement with the California
13 Independent System Operator, in substantially the same form as the
14 copy which is attached hereto as Exhibit A and incorporated by
15 reference.
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SECTION 3:
The City Council of the City of Vernon hereby
17 authorizes the Mayor to execute said Agreement for, and on behalf of,
18 the City of Vernon and the Acting City Clerk is hereby authorized to
19 attest thereto.
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SECTION 4:
The City Council of the City of Vernon hereby
21 authorizes the Acting City Clerk, or his designee, to make whatever
22 nonsubstantive, administrative and/or text changes, upon advice of
23 counsel, to the Agreement,
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SECTION 5:
The City Council of the City of Vernon hereby
directs the Acting City Clerk, or his designee, to send three executed
Agreements, to:
California Independent System Operator
Attn, Roni Reese, Senior Contract Analyst
151 Blue Ravine Road
Folsom, CA 95630
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SECTION 6:
The Acting City Clerk of the City of Vernon
2 shall certify to the passage of this resolution, and thereupon and
3 thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 19th day of October, 2005.
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,/' ' -L~ONIS C. MAURG, ayor
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11 BRUCE V, MALKENHORST, JR,
Acting City Clerk
ATTEST:
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1 STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
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I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 8878, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, October 19, 2005, and thereafter was duly signed by the
Mayor of the City of Vernon.
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(SEAL)
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BRUCE V. MALKENHORST, JR.
Acting City Clerk
Redacted Version
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, CITY OF VERNON MSS AGREEMENT
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR
AND
CITY OF VERNON
METERED SUBSYSTEM AGREEMENT
CITY OF VERNON MSS AGREEMENT
METERED SUBSYSTEM AGREEMENT
THIS AGREEMENT is dated this
into, by and between:
day of
, 20_ and is entered
(1) The City of Vernon, a municipal corporation ofthe State of California, which
owns and operates a municipal electric utility system engaged in the Generation,
transmission, distribution, purchase and sale of electric power and Energy at
wholesale and retail, having its registered and principal place of business located
at 4305 Santa Fe Avenue, Vernon, California 90058 ("Vernon");
and
(2) California Independent System Operator Corporation, a California non-profit
public benefit corporation having its principal place of business located in such
place in the State of California as the ISO Governing Board may from time to
time designate, initially 151 Blue Ravine Road, Folsom California 95630 (the
"ISO").
Vernon and the ISO are hereinafter referred to individually as "Party" or collectively as
the "Parties."
Whereas:
A. The City of Vernon is a municipal electric utility engaged in, among other things,
generating, transmitting and distributing electric power and Energy in the Vernon
Service Area;
B. The ISO operates the ISO Control Area and is engaged in, among other things,
exercising Operational Control over certain electric transmission facilities forming
the ISO Controlled Grid, including transmission facilities and entitlements owned
or controlled by Southern California Edison Company (hereinafter referred to as
"SCE") and Vernon, scheduling transactions that utilize those transmission
facilities and Entitlements, and operating certain markets, including markets for
Imbalance Energy and Ancillary Services, pursuant to the terms of the ISO Tariff
and has certain statutory obligations under California law to maintain the
reliability of the ISO Controlled Grid, as well as certain NERC and Western
Electricity Coordinating Council or its successor ('WECC") mandated
responsibilities to ensure the reliable operation of the entire electric grid within
the ISO Control Area;
C. Vernon is a Local Publicly Owned Electric Utility under the Constitution of the
State of California and utilizes tax-exempt financing for one or more of its power
supply resources that restricts the amount of private use of such projects;
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C1lY OF VERNON MSS AGREEMENT
D. Vernon's System is within the ISO Control Area, is directly interconnected to the
SCE Distribution System, and is interconnected to the ISO Controlled Grid
through the Laguna Bell-Vernon Interconnection Service Agreement;
E. Vernon desires to continue to operate its generating resources, its transmission
and the distribution resources of Vernon's System in an integrated manner to
reliably serve Vernon's loads and also desires, as or through a Scheduling
Coordinator, to schedule transactions using the ISO Controlled Grid and
participate in the ISO's markets as a buyer and a seller;
F, The Parties are entering into this Metered Subsystem Agreement ("Agreement")
in order to establish the terms and conditions on which (1) Vernon will operate
Vernon's Generating Units within the ISO Control Area; (2) Vernon will, as or
through its Scheduling Coordinator, schedule transactions within the ISO
Controlled Area and participate in the ISO's markets; and (3) the Parties will
meet their obligations under the ISO Tariff, as may be modified by this
Agreement, in connection therewith;
G. Vernon desires the option to utilize Vernon's resources to follow Vernon's Load
and exports from its MSS;
H. The intent of the Parties is that any ISO charges will be charged to Vernon's
Scheduling Coordinator based on the principle of cost causation, with due regard
for historic considerations, timing and transition issues, and other relevant
factors;
I. In order to maintain the reliability of the interconnected electric systems
encompassed by the WECC, the WECC RMS Agreement requires the ISO to
require all Generators in its Control Area, including Vernon, to comply with
certain WECC ~eliability criteria and to be slbject to penalties imposed by the
WECC Reliability Criteria Agreement should they fail to do so, which
requirements are set forth in Section 10.4; and
J. The Parties acknowledge that the ISO is responsible for the efficient use and
reliable operation of the ISO Controlled Grid and the operation of the ISO's
Control Area consistent with achievement of planning and Operating Reserve
criteria no less stringent than those established by the WECC and NERC and in
accordance with the ISO Tariff. The Parties acknowledge that the ISO may not
be able to satisfy fully these responsibilities if parties to agreements with the ISO,
including Vernon, fail to comply fully with all of their obligations under those
agreements. The Parties further acknowledge that Vernon may not be able to
satisfy fully its native Load responsibilities in the event the ISO fails to comply
fully with all of its obligations under this Agreement and the ISO Tariff.
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CITY OF VERNON MSS AGREEMENT
NOW THEREFORE, in consideration of the mutual covenants set forth herein, THE
PARTIES AGREE as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
1.1 Master Definitions Supplement. Unless defined in the introduction or Section
1.2 of this Agreement, all terms used in this Agreement with initial capitalization
shall have the same meaning as those contained in the Master Definitions
Supplement to the ISO Tariff.
1,2 Special Definitions for this Agreement. In this Agreement, the following terms
shall have the meanings set opposite them:
"Point of Delivery" means any point at which Vernon's System interfaces with
the ISO Control Grid for transactions into ISO markets. The Point of Delivery is
described in Schedule 1. '
"Point of Interconnection" means any point at which Vernon's System is
interconnected with the ISO Controlled Grid in the ISO Control Area. The Point
of Interconnection is described in Section 4.1.
"Vernon's System" means all transmission facilities, distribution facilities and
Generating Units owned or controlled by Vernon on Vernon's side of the Points
of Interconnection for its MSS, as listed in Schedule 1. A description of the
generating facilities and Point of Interconnection facilities comprising Vernon's
System is set forth in Schedule 1.
"Under Frequency Load Shedding" or "UFLS" means automatic load
Shedding, accomplished by the use of such devices as under frequency relays,
intended to arrest frequency decline and assure continued operation within
anticipated islands.
1.3 Rules of Interpretation. The following rules of interpretation and conventions
shall apply to this Agreement:
(a) the singular shall include the plural and vice versa;
(b) the masculine shall include the feminine and neutral and vice versa;
(c) "includes" or "including" shall mean "including without limitation";
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CITY OF VERNON MSS AGREEMENT
(d) references to a Section, Article or Schedule shall mean a Section, Article
or a Schedule of this Agreement, as the case may be, unless the context
otherwise requires;
(e) any reference to the ISO Tariff or any provision of the ISO Tariff will mean
a reference to the ISO Tariff or provision then in effect as modified during
the term of this Agreement, unless otherwise specifically provided;
'(f) unless the context otherwise requires, references to any law shall be
deemed references to such law as it may be amended, replaced or
restated from time to time;
(g) unless the context otherwise requires, any reference to a "person"
includes any individual, partnership, firm, company, corporation, joint
venture, trust, association, organization or other entity, in each case
whether or not ha ving separate legal personality;
(h) unless the context otherwise requires, any reference to a Party includes a
reference to its permitted successors and assigns;
(i) any reference to a day, week, month or year is to a calendar day, week,
month or year; and
(j) the captions and headings in this Agreement are inserted solely to
facilitate reference and shall have no bearing upon the interpretation of
any of the terms and conditions of this Agreement.
ARTICLE II
TERM AND TERMINATION
2.1 Effective Date. This Agreement shall be effective as of the date it is accepted
for filing and made effective by FERC, and shall remain in full force and effect
until terminated pursuant to Section 2.2 or upon such other date as the Parties
shall mutually agree.
2.2 Termination
2.2.1 Termination by Default. Either Party {the terminating Party) may terminate this
Agreement by giving written notice of termination in the event that the other Party
(the defaulting Party) commits any default under this Agreement or the applicable
provisions of the ISO Tariff which, if capable of being remedied, is not remedied
within 30 days after the terminating Party has given the defaulting Party written
notice of the default, unless excused by reason of Uncontrollable Forces under
Article XVIII of this Agreement.
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2.2,2 Termination on Notice. Either Party shall have the right to terminate this
Agreement in accordance with this Section 2.2.2, subject to the procedural
requirements set forth in Section 2.2.3. Either Party may terminate this
Agreement by giving the other Party written notice at least six (6) months in
advance of the intended effective date of termination.
2.2,3 , Filing. With respect to any notice of termination given pursuant to this Section
2.2, the ISO must file a timely notice of termination with FERC. The filing of the
notice of termination by the ISO will be considered timely if: (1) the request to file
a notice of termination is made after the preconditions for termination set forth in
Sections 2.2.1 or 2.2.2 have been met, and (2) the ISO files the notice of
termination within 30 days of receipt of such request from Vernon or issuance of
its own notice of termination. If the ISO fails to make a filing with the FERC of a
notice of termination requested by Vernon within 30 days of the Vernon request,
Vernon may bring a complaint at the FERC for a FERC determination. This
Agreement shall terminate upon the date on which the notice of termination is
permitted by FERC to become effective.
ARTICLE III
GENERAL TERMS AND CONDITIONS
3.1 Scope of Agreement. Except as specifically provided otherwise, the provisions
of this Agreement will apply only with respect to the facilities comprising Vernon's
System and to Loads and Generating Units that comprise or are directly
connected only to Vernon's System. Subject to the terms of Article II, this
Agreement shall not affect Vernon's ability to join or establish another Control
Area or Vernon's right to exercise any available legal recourse to obtain or
confirm that it possesses other forms of transmission rights.
3,2 [NOT USED]
3.3 Relationship Between Agreement and ISO Tariff
3.3.1 If and to the extent a matter is specifically addressed by a provision of this
Agreement (including any schedules or other attachments to this Agreement), the
provision of this Agreement sha II govern notwithstanding any inconsistent
provision of the ISO Tariff.
3,3.2 If and to the extent this Agreement provides that a matter shall be determined in
accordance with the applicable provisions of the ISO Tariff, the applicable
provisions of the ISO Tariff shall govern.
3.3.3 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of any of the Generating Units listed in Schedule 14, comply with the
requirements applicable to Participating Generators under Article 5 of the ISO
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Tariff and all other provisions of the ISO Tariff governing Participating
Generators. Nothing in this Agreement shall obligate Vernon to execute a
Participating Generator Agreement with respect to any Vernon Generating Units.
3,3.4 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of any Load listed in Schedule 14, comply with the requirements applicable to
Participating loads under Article 5 of the ISO Tariff and all other provisions of the
ISO Tariff governing Participating Loads. Nothing in this Agreement shall
obligate Vernon to execute a Participating Load Agreement with respect to any
Vernon Load. .
3,3.5 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of the distribution facilities of Vernon's System, comply with the requirements
applicable to Utility Distribution Companies under Article 4 of the ISO Tariff.
Nothing in this Agreement shall obligate Vernon to execute a UDC Operating
Agreement.
3.3.6 The applicability of any provision of the ISO Tariff to Verron, including as
provided in Sections 3.3.1 through 3.3.5, inclusive, shall, in the event of a dispute
between the Parties, be determined through the ISO ADR Procedures in
accordance with Article 13 of the ISO Tariff.
3,3,7 So long as Vernon remains a Participating TO, Vernon shall comply with the
requirements applicable to Participating TOs under Article 3 of the ISO Tariff or
any settlement of FERC Docket No. ER 00-2019.
3.3.8 This Agreement shall serve, with respect to Vernon, as the written agreements
required by Sections 4.1.1, 5, 10.3.1, 23.1.1, and 23.4 of the ISO Tariff and the
written agreement required for Participating Loads. Vernon's existing Utility
Distribution Company Operating Agreement shall terminate simultaneously upon
this Agreement becoming effective in accordance with Section 2.1 of this
Agreement, subject to FERC acceptance of the notice of termination of the Utility
Distribution Company Operating Agreement requesting that effective date, which
shall be filed with FERC by the ISO concurrently with the filing of this Agreement.
3.4 Amendment to Agreement
3.4.1 Vernon and the ISO shall retain all rights under Section 206 of the Federal Power
Act. Except with respect to the ISO's rights set forth in Section 3.4.2 of this
Agreement and the Parties' rights under Section 206 of the Federal Power Act,
this Agreement may be modified only by mutual written agreement between the
Parties. Amendments that require FERC approval shall not take effect until
FERC has accepted such amendments for filing and made them effective.
3.4,2 The ISO shall have the right to apply unilaterally under Section 205 of the
Federal Power Act to change the rates, terms, and conditions under this
Agreement for services provided to Vernon. In proposing any changes, unless in
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response to a FERC order as provided in Section 3.7, the ISO will consider the
principles in this Agreement as detailed in Section 3.5.2. Additionally, unless in
response to a FERC order as provided in Section 3.7, any changes proposed by
the ISO shall be subject to the following:
3,4,2,1 The ISO shall provide Vernon written notice of such ISO proposed change, no
fewer than 30 days in advance of the filing by the ISO for such proposed
change.
3,4,2.2 The ISO shall meet and confer with Vernon regarding the change, provided
that the scheduli ng of such meeting shall not be unreasonably delayed.
3,4.2,3 Vernon's representative designated in Schedule 17 may, at Vernon's sole
option, waive in writing these requirements upon written request by the ISO.
3.4.2.4 The ISO shall provide Vernon with a copy of the FERC filing if, and when,
made.
3,4.3 In addition to changes that may otherwise be contemplated by Section 3.6 or
Section 3.7, the Parties recognize that the ISO's responsibilities and operations,
as set forth in the ISO Tariff, and that Vernon's responsibilities and operations
may change during the term of this Agreement. The Parties agree that, in the
event any such change substantially affects the allocation of rights,
responsibilities and obligations between the Parties under this Agreement, the
Parties, while continuing to honor the terms and conditions of this Agreement, will
make good faith efforts to negotiate an appropriate amendment to this
Agreement and shall endeavor in that process to restore that allocation.
Schedules to this Agreement may be revised by agreement of the authorized
representatives of the Parties designated in Schedule 17. Revisions to
Schedules other than with regard to the contact information in Schedules 6 and
17 shall be filed by the ISO with FERC.
3.5 Amendment to ISO Tariff
3.5,1 Nothing in this Agreement shall affect in any way the authority of the ISO to
modify unilaterally the ISO Tariff in accordance with Section 19 of the ISO Tariff
or of the ISO and Vernon to exercise their rights under the Federal Power Act or
any other law, or to pursue any legal remedies.
3.5.2 In making amendments to the ISO Tariff as provided in Section 3.5.1, the ISO will
consider the impact on Metered Subsystems and the principles reached in this
Agreement, including but not limited to:
3.5.2.1 Cost Causation: The intent ofthe Parties is that ISO charges will be charged
to Vernon or Vernon's Scheduling Coordinator based on the principle of cost
causation, with due regard for historic considerations, timing and transition
issues, and other relevant factors.
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3.5,2.2 Load Following Capability: Vernon desires the option to elect to implement
Load following capability, through its Scheduling Coordinator, to follow
Vernon's Load and exports from its MSS with Vernon's resources and imports
into its MSS and to make economic resource decisions with the resources in
Vernon's portfolio.
3.5.2.3 Compatibility of Market Participants: For efficient use of transmission facilities
and to decrease Congestion, the ISO desires that all Market Participants
operate using similar rules and Scheduling timelines.
3,5,2,4 Private Use Restrictions: One or more of Vernon's power supply resources
has been financed with tax-exempt bonds, which bond indenture requires
limitations on operational control of such resource.
3.6 Market Redesign and Technology Upgrade. The ISO is in the process,
simultaneously with the negotiations of this Agreement, of redesigning the ISO
markets ("MRTU"). To the extent possible, and consistent with the principles of
Section 3.5.2, the components of MRTU that impact Metered Subsystems will be
incorporated in this Agreement. If components of the MRTU design are not
known until after the execution of this Agreement, the Parties agree to amend
this Agreement in accordance with Sections 3.4 and 3.5.2.
3.7 Changes to Conform To FERC Orders. Nothing in this Article III shall be
interpreted to limit the ISO's right to modify the ISO Tariff or this Agreement to
comply with or conform to any FERC order.
3.8 Facilities Financed by Local Furnishing Bonds or Other Tax-Exempt Bonds.
This Section 3.8 applies only to facilities which are under the Operational Control
of the ISO and are owned by a MSS Operator with Local Furnishing Bonds or
other tax-exempt bonds. Nothing in this Agreement shall compel (and the ISO is
not authorized to request) any MSS Operator with Local Furnishing Bonds, or
other tax-exempt bonds, to violate restrictions applicable to facilities which are
part of a system that was financed in whole or in part with Local Furnishing
Bonds or other tax-exempt bonds.
ARTICLE IV
INTERCONNECTION
4.1 Points of Interconnection, The Points of Interconnection are described in
Schedule 1. Additional Points of Interconnection may be established only by
mutual agreement of the Parties, which agreement shall not be unreasonably
withheld.
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4.2 Interconnection Operation Standards, The ISO and Vernon sha.ll maintain
stable established operating parameters and control power and reactive flow
within standards stated in Schedule 2.
4.3 Operation, Maintenance, and Load Serving Responsibilities. Vernon shall
operate and maintain all facilities under Vernon control forming any part of
Vernon's System, and shall be responsible for the supply, including any
purchases, of the Energy and Ancillary Services required to reliably provide
electric service to the loads connected to Vernon's System in accordance with
Applicable Reliability Criteria, including WECC and NERC criteria.
4,4 Expansion, Retirement, and Modification of Facilities, Vernon shall
coordinate with the ISO in the planning and implementation of any expansion,
retirement, or modification of those facilities forming parts of Vernon's System
that are identified in Schedule 1, replacements for such facilities, and other
facilities forming parts of Vernon's System that serve similar functions or that
otherwise will or may significantly affect the Points of Interconnection, and shall
provide sufficient advance notice to enable the ISO to conduct any necessary
studies. The Parties will amend Schedule 1, as necessary, should a new Point of
Interconnection be established in accordance with Section 4.1.
4.5 Installation of Facilities and Rights of Access
4.5,1 Pursuant to Schedule 3, the Parties shall permit one another, on reasonable
notice and with mutual agreement in each case, to install equipment or have
installed equipment or other facilities on the property of the other Party to enable
the installing Party to meet its service obligations, unless doing so would
negatively impact the reliability of service provided by the owning Party. Unless
otherwise agreed, all costs of installation shall be borne by the installing Party.
4.5.2 A Party installing equipment on the property of the other Party shall be granted,
free of charge, reasonable rights of access to inspect, repair, maintain and
upgrade that equipment. Access shall be provided only on prior notice and such
access shall not be unreasonably withheld.
4.5.3 Notwithstanding any other provision in this Section 4.5, Vernon shall provide the
ISO with access for inspection or audit, to any equipment or other facilities of
Vernon's System, the operation of which affects any Point of Interconnection or
the ISO Controlled Grid. Vernon will allow access during normal working hours
with no prior notice. For access during times outside of normal working hours,
the ISO shall provide Vernon with one (1) Business Day advance notice. A
shorter advance notice time may be attained subject to mutual agreement of the
Parties representatives.
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ARTICLE V
OPERATIONS
5.1 Outages
5.1.1 Vernon shall coordinate Outages of its Generating Units and of transmission
facilities, including the Points of Interconnection, constituting parts of Vernon's
System with the owners of the transmission or distribution facilities with which
Vernon's System is interconnected so that each of those owners can take those
Outages into account in coordinating maintenance of its transmission facilities
with the ISO.
5,1.2 Vernon shall schedule with the ISO on an annual basis, pursuant to Schedule 4,
any Maintenance Outages of the equipment included in Schedule 1, and shall
coordinate the Outage requirements of Vernon's System with the Participating
TO with which Vernon's System is interconnected.
5.1.3 Notwithstanding anything to the contrary in this Agreement, to the extent required
by any valid law, regulation or order issued by any state or federal authority
having jurisdiction over Vernon or Vernon's System, which law, regulation or
order applies to entities that have executed a written undertaking required by
Section 5 of the ISO Tariff, Vernon shall coordinate Outages of its Generating
Units, and of transmission facilities constituting parts of Vernon's System, with
the ISO, pursuant to any generally applicable program established by the ISO to
implement such law, regulation or order.
5.2 Safety and Reliability. Vernon shall operate and maintain Vernon's System in
accordance with applicable safety and reliability standards, WECC and NERC
requirements, regulatory requirements, operating guidelines, and Good Utility
Practice so as to avoid any material impact on the ISO Controlled Grid. Without
limiting the foregoing, Vernon shall operate and maintain Vernon's System,
during normal and System Emergency conditions, in compliance with the
requirements applicable to Utility Distribution Companies in the ISO Operating
Procedures and standards. In the event any sLCh ISO Operating Procedure or
standard is revised to modify the requirements applicable to Utility Distribution
Companies, the Parties shall comply with such revision.
5.3 Critical Protective Systems. Vernon will coordinate with the ISO, SCE, and
any Generators on Vernon's System to ensure that ISO Controlled Grid Critical
Protective Systems, including relay systems and other systems described in
Schedule 5, are installed and maintained in order to function in a coordinated and
complementary fashion with protective devices installed by Vernon, SCE, and
Generators. Vernon shall notify the ISO as soon as is reasonably possible of any
condition that it becomes aware of that may compromise or affect the operating
safety and reliability of the ISO Controlled Grid Critical Protective Systems,
including the systems described in Schedule 5.
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5.4 Control Center. Vernon shall maintain and operate a control center that is
staffed twenty-four (24) hours per day, seven (7) days per week and shall,
together with the ISO, establish appropriate communications facilities and
procedures between Vernon's control center and the ISO Control Center. The
initial points of contact are set forth in Schedule 6. A Party's representative must
update the information in Schedule 6 as the information changes. Changes to
Schedule 6 shall not constitute an amendment to this Agreement.
5.5 Transmission Losses, Outages, and Congestion, Vernon shall be
responsible for transmission losses within Vernon's System and to any Points of
Delivery. The ISO is not responsible for transmission line Outages and
transmission Congestion within Vernon's System and at the Points of
Interconnection. This Section 5.5 does not affect Congestion on the ISO
Controlled Grid, which shall be managed in accordance with the ISO Tariff.
ARTICLE VI
INFORMATION SHARING
6.1 Forecasts. Vernon shall provide to the ISO annually its ten-year forecasts of
Demand growth, internal Generation, c:l.nd expansions of or replacements for
those transmission facilities that are part of Vernon's System identified in
Schedule 1 and other transmission facilities that are part of Vernon's System that
serve similar functions or that otherwise will or may significantly affect any Point
of Interconnection. Such forecast shall be provided on the date that Utility
Distribution Companies are required to provide similar forecasts, which is
currently October 15. The ISO shall notify Vernon of any changes in this date.
Peak Demand forecasts for Vernon's System shall be submitted weekly by
Vernon's Schedulirg Coordinator and monthly in accordance with the ISO
Demand Forecasting Protocol, and biannually as part of the ISO's summer and
winter assessment process.
6.2 System Surveys and Inspections. Vernon and the ISO shall cooperate to
perform system surveys and inspections of facilities at or near the Points of
Interconnection that may significantly affect the facilities of the other Party.
6.3 Maintenance Schedules. Vernon shall provide the ISO on an annual basis with
a schedule of planned maintenance of those Generating Units identified in
Schedule 1, in accordance with Schedule 4. Vernon and the ISO shall also
maintain records of the Maintenance Outages scheduled by Vernon on such
facilities and their actual duration. Vernon shall coordinate maintenance of its
transmission facilities with the ISO in accordance with the Transmission Control
Agreement. Should Vernon withdraw any of its transmission facilities from ISO
Operational Control pursuant to the Transmission Control Agreement, it shall
coordinate maintenarce of its transmission facilities within the ISO Control Area
with the ISO in accordance with this Agreement.
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6,4 Reliability Information. Vernon and the ISO shall each have the obligation to
inform the other Party, as promptly as possible, of any circumstance of which it
becomes aware (including, but not limited to, abnormal temperatures, storms,
floods, earthquakes, and equipment depletions and malfunctions and deviations
from Registered Data and operating characteristics) that is reasonably likely to
threaten the reliability of the ISO Controlled Grid or the integrity of Vernon's
System respectively. Vernon and the ISO each shall also inform the other Party
as promptly as possible of any incident of which it becomes aware (including, but
not limited to, equipment outages, over-loads or alarms) which, in the case of
Vernon, is reasonably likely to threaten the reliability of the ISO Controlled Grid,
or, in the case of the ISO, is reasonably likely to adversely affect Vernon's
System. Such information shall be provided in a form and content which is
reasonable in all the circumstances, sufficient to provide timely warning to the
other Party of the threat and, in the case of the ISO, not unduly discriminatory
with respect to the ISO's provision of similar information to other entities.
6.5 Major Outage Reports. Vernon shall promptly provide such information as the
ISO may reasonably request concerning Vernon's operation of Vernon's System
to enable the ISO to meet its responsibility under the ISO Tariff to cond uct
reviews and prepare reports following major Outages. Where appropriate, the
ISO will provide appropriate assurances that the confidentiality of commercially
sensitive information shall be protected. The ISO shall have no responsibility to
prepare reports on Outages that affect customers on Vernon's,System, unless
the Outage also affects customers connected to the system of another entity
within the ISO Control Area. Vernon shall be solely responsible for the
preparation of any reports required by any governmental entity or the WECC with
respect to any Outage that affects solely customers on Vernon's System.
6.6 Annual Reviews and Reports
6.6.1 The ISO shall make available to Vernon any public annual reviews or reports
regarding performance standards, measurements or incentives relating to the
ISO Controlled Grid that the ISO makes available to MSS Operators and
Participating TOs.
6.6.2 Vernon shall make available to the ISO any public annual reviews or reports
regarding performance standards, measurements or incentives relating to
Vernon's System that may affect the ISO Control Area.
6.6.3 The ISO and Vernon shall jointly develop any necessary forms and procedures
for collection, study, treatment, and transmittal of system data, information,
reports and forecasts.
6.7 Vernon shall cause to be installed and cause to be maintained direct telemetry
links from facilities comprising Vernon's System including to the ISO's EMS
system to provide real-time data to the ISO, subject to any exemption available in
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CITY OF VERNON MSS AGREEMENT
accordance with the ISO Tariff. Such data points may include without limitation:
output of Generating Units under Vernon control; and Vernon's power flows at
the Vernon Points of Delivery; and bus voltages at each Generating Unit. With
regard to Generating Units in the IS 0 Control Area in which Vernon has an
entitlement over which Vernon does not have legal authority to exercise control,
Vernon shall, at a minimum, support the installation and maintenance of direct
telemetry links to the ISO's EMS system from those Generating Units before the
appropriate bodies of the projects pursuant to the individual project agreements
to the full extent allowed by such agreements and applicable laws and
regulations. Additional data points to be transmitted to the ISO EMS system will
be as mutually agreed by the ISO and Vernon representatives.
ARTICLE VII
EMERGENCY OPERATIONS
7.1 In General.
Except with respect to Sections 7.4.1, 7.4.4, 7.4.5, 7.5.1, and 7.5.2, or unless
Vernon is short of resources to meet its forecasted Demand, as determined in
accordance with Section 4.5.3 of the ISO Tariff, the terms of this Article VII shall
only apply during a System Emergency that is not a result of a deficiency of
resources to serve Loads in the ISO Control Area but instead occurs due to
operating contingencies, which may include but not be limited to forced loss of
resources and/or transmission components or may otherwise be caused by an
Uncontrollable Force. In the event a System Emergency occurs or the ISO
determines that a System Emergency is threatened or imminent, Vernon shall, in
accordance with Good Utility Practice: (a) comply with all directions from the ISO
concerning the management and alleviation of a threatened or actual System
Emergency, which may include shutting down or starting a Generating Unit,
altering the scheduled delivery of Energy or Ancillary Services throughout the
ISO Control Area, or disconnecting Vernon Load; and (b) comply with all
procedures concerning System Emergencies set out in the Vernon EEP, ISO
Protocols, and ISO Operating Procedures, in accordance with the applicable
provisions of this Agreement. Without limiting the generality of the foregoing:
7.1.1 When requested by the ISO subsequent to the declaration by the ISO of.an alert
regarding a threatened or imminert System Emergency in accordance with the
ISO's Operating Procedure applicable to System Emergencies, in the event
Vernon has chosen not to follow its Load in accordance with Section 8,6, and
otherwise during a System Emergency, Vernon shall operate all of its Generating
Units listed in Schedule 14 to supply the ISO with generating capacity and/or
Energy that can be made available by those Generating Units in order to make
available as much generating capacity and/or Energy as possible to the ISO
during the term of any System Emergency, consistent with: (a) maintaining the
supply of Energy to loads on Vernon's System, other than in accordance with
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Section 7.4 of this Agreement; and (b) due consideration for Vernon obligations
specified in the EEP attached to Schedule 11 or limitations specified in Schedule
14 resulting from, but not necessarily limited to: (1) licenses/permits related to
Generating Units (including air emission constraints), (2) water release
constraints imposed by regulatory agencies, (3) internal policies related to fuel
and contract management, and (4) abnormal Generating Unit and transmission
maintenance, provided that Vernon shall provide the ISO with advance notice of
any changes to the limitations in Schedule 14 that Vernon's obligations impose
on the operation of its Generating Units, and any changes agreed to by the ISO
shall be amendments to this Agreement. For that purpose, Vernon shall provide
the ISO with any change in Schedule 14 with regard to the limitations on the
operation of its Generating Units. Vernon shall provide the ISO updates
regarding the status of the limitations in Schedule 14 promptly whenever it
becomes aware of factors that affect such limitations, provided that updates shall
be provided at least quarterly and no updates may be provided later than the
deadline for the submission by other Generators of changes in limitations on the
operation of Generating Units, which is currently the deadline for the submission
of final Hour-Ahead Schedules, except when a change is due to a Forced
Outage. In making as much generating capacity and/or Energy available that
can be made available by its Generating Units to the ISO as possible for use
subsequent to the declaration by the ISO of an alert regarding a threatened or
imminent System Emergency in accordance with the ISO's Operating Procedure
applicable to System Emergencies and during System Emergency conditions,
subject to the foregoing, Vernon shall:
7.1.1.1 Schedule, reschedule and operate to the maximum extent possible, the
Generating Units listed in Schedule 14, up to the limitations set forth in
Section 2 of Schedule 14, and, to the extent possible, other Vernon resources
within and outside the ISO's Control Area to maximize the amount of
generating capacity and/or Energy available that can be made available by
those Generating Units and other resources to the ISO; and
7.1.1.2 Reschedule Maintenance Outages of equipment and facilities, including
Generating Units and facilities which impact the operation of Generating
Units, to maximi:ze the amount of generating capacity and/or Energy available
that can be made available by those Generating Units to the ISO.
7.1.2 In the event that the ISO issues a Dispatch instruction that contravenes the
Vernon EEP attached to Schedule 11 or any limitation set forth in Schedule 14
duly communicated in accordance with Section 7.1.1, Vernon or its Scheduling
Coordinator shall not be required to follow that instruction, although it may
consent to do so in a particular case (without prejudice to Vernon's right to direct
its Scheduling Coordinator to decline any such instructions thereafter). If Vernon
or its Scheduling Coordinator chooses not to follow such an instruction, it shall
notify the ISO as soon as possible that it will not follow the Dispatch instruction
due to the previously communicated limitation.
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7,1,3 Vernon's Scheduling Coordinator shall receive compensation for generating
capacity and/or Energy supplied in response to System Emergency Dispatch
instructions issued by the ISO in accordance with the ISO Tariff,
7.1.4 During a System Emergency, the ISO and Vernon shall communicate through
their respective control centers and in accordance with procedures established in
this Agreement and the ISO Tariff.
7.1.5 Notwithstanding anything to the contrary in Articles V, VII, VIII, IX, or X of this
Agreement, or any ISO Tariff provision, Vernon shall not be expected or required
to curtail Load or offer to the ISO generating capacity or Energy from its
Generating Units in a System Emergency that is due to the failure of other Load
serving entities to provide resources adequate to serve Load and maintain
Operating Reserves or maintain an Approved Credit Rating in accordance with
the ISO Tariff.
7.1.5.1 Nothing in this Section 7.1.5 or this Agreement is intended to affect Verron's
obligation to comply with any market mitigation requirement, including any
must-offer requirement, that the FERC may impose on MSS Operators.
7.2 Notice. When a System Emergency occurs, the ISO shall notify Vernon's
control center as part of the process by which it notifies all Utility Distribution
Companies and MSS Operators of System Emergency conditions, Details of the
notification process are set forth in Schedule 7.
7.3 Records. Vernon and the ISO shall maintain all appropriate records with
respect to operations during a System Emergency in accordance with the ISO
Tariff.
7.4 Load Shedding
7.4.1 Automatic Load Shedding, Vernon shall implement and have at all times
operational an automatic Under Frequency Load Shedding program, or shall be
included in another MSS's or UDC's WECC-compliant UFLS program, as
described in Schedule 8, and any undervoltage relay protection program that
may be described in Schedule 9.
7.4.2 Manual Load Shedding Priorities. Section 4.5.3 of the ISO Tariff provides that
the ISO will determine each UDC or MSS that has insufficient resources to meet
its forecasted Demand in accordance with the ISO forecast. If Load Shedding is
required solely due to insufficient resources to meet Load and/or inability to meet
Operating Reserve obligations (as defined by WECC or its successor and
implemented by the ISO), as determined in accordance with Section 4.5.3 of the
ISO Tariff, and only if Vernon is short of resources to meet its forecasted
Demand and exports, as determined in accordance with Section 4 .5.3 of the ISO
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Tariff, will Vernon be required to shed Load, as directed by the ISO. Vernon
shall provide the ISO with detailed real time information, in graphical or tabular
format for those contracts and resources that do not have direct telemetry,
demonstrating its full resource sufficiency during any time that the ISO
interrupted firm Load within the ISO Control Area or during which time an ISO
direction to interrupt firm Load was in force, like other MSS Operators and UDCs
seeking similar exclusion from firm load Shedding obligations, and Vernon and
its Scheduling Coordinator shall be subject to the provisions of Section 4.5.3 of
the ISO Tariff for any failure to make such demonstration.
7,4,3 Manual Load Shedding, When called upon to do so by the ISO in accordance
with Section 7.4.2 to avert, manage, or alleviate a System Emergency, Vernon
shall implement the manual Load Shedding program described in Schedule 10.
The ISO shall notify Vernon when conditions exist that would require Vernon to
implement the Load curtailment and Interruptible Load programs described in
Schedules 10, 10A, and 10B. Subjectto the provisions of Sections 7.1.2 and
7.4.2, if the ISO determines that manual Load curtailment is required to manage
a System Emergency, the ISO shall determine the amount and location of Load
to be reduced and, to the extent practicable, shall allocate a portion of the
required Demand reduction to Vernon and each UDC and MSS Operator based
on the ratio of its Demand at the time of the ISO Control Area annual peak
Demand for the previous year to total ISO Control Area annual peak Demand for
the previous year, taking into account system considerations and Vernon's
curtailment rights.
7,4.4 Load Restoration. Load shed in accordance with Section 7.4.1, 7.4.2, and 7.4.3
of this Agreement shall be restored pursuant to Schedule 12.
7.4.5 The ISO shall use reasonable efforts to coordinate Vernon's Under Frequency
Load Shedding program with the Under Frequency Load Shedding programs of
other MSS Operators and Utility Distribution Companies, and the implementation
of all such other programs, so that no one entity bears a disproportionate share
of Under Frequency Load Shedding in the ISO Control Area. Vernon warrants
that its UFLS program does and will continue to fully adhere to the applicable
WECC plans and requirements governing such programs, in accordance with
Schedule 8.
7.4,6 To the extent Vernon reduces Vernon's System Load in response to a System
Emergency, it shall exercise its best efforts to maintain the same level of
Generation and imports as was scheduled prior to the Load reduction in order to
provide the ISO with Energy, subject to the provisions of Section 7.1.2. Vernon's
Scheduling Coordinator shall receive compensation for any Energy or Ancillary
Services made available to the ISO as a result of such Load Shedding in
accordance with the ISO Tariff and ISO Operating Procedures and, in
accordance with Section 11.2.4.1.2{a) of the ISO Tariff, shall not be subject to
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any Uninstructed Deviation Penalty for positive Uninstructed Imbalance Energy
for so long as the System Emergency condition exists.
7.5 Electrical Emergency Plan
7.5,1 Vernon shall cooperate with the ISO's implementation of the Electrical
Emergency Plan ("ISO EEP") developed by the ISO in accordance with Section
2.3.2.4 of the ISO Tariff. Vernon shall implement Vernon's EEP attached to
Schedule 11 of this Agreement and filed with FERC for informational purposes,
and the ISO shall cooperate with Vernon's implementation of Vernon's EEP.
7,5.2 Vernon shall make an effort to notify its customers of any requests for voluntary
Load curtailments of which the ISO notifies iVernon pursuant to the ISO EEP.
7,5.3 When the ISO allocates an amount of Load curtailment to Vernon pursuant to
Section 7.4 of this Agreement and to the ISO EEP to manage a System
Emergency, Vernon shaH cause customers to curtail that amount of load except
to the extent such load is being served by ah emergency generator pursuant to
the provisions of Schedule 11.
ARTICLE VIII
LOCAL AND REGIONAL RELIABILITY
8.1 Reliability Within Vernon's System
8,1.1 Vernon shall be solely responsible for maintaining the reliability of electric service
to customers in Vernon's System in accordance with Applicable Reliability
Criteria, regulatory requirements, and Good Utility Practice, subject to the
responsibilities of the ISO as the operator of the Control Area in which Vernon's
System is located.
8,1,2 Vernon shall be responsible for any reliability Generation, Voltage Support, and
Black Start service requirements within Verhon's System. Except as may be
imposed in section 7.1.5.1 or Vernon voluntarily elects to be subject to must-offer
requirement, Vernon has no must-offer requirements.
8,2 Control Area Reliability, For the costs specified in this Article VIII, Vernon,
through its Scheduli'l:J Coordinator, shall be responsible for supplying or bearing
its proportionate share of the costs of generating resources required for the
reliability of electric service to Loads in the 1$0 Control Area, except for
Reliability Must-Run ("RMR") Generation costs on the ISO Controlled Grid,
where such costs are the responsibility of th& Participating TO where the RMR
Unit is interconnected and Vernon is not the !applicable Participating TO.
Vernon, through its Scheduling Coordinator, !may meet such obligation from
resources it owns or with respect to which it tlas contractual entitlements to the
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Energy and Ancillary Services or it may purchase those products through the
ISO's markets in accordance with the terms of the ISO Tariff.
8.2.1 Nothing in this Agreemert shall obligate Vernon to make any Generating Units
available as Reliability Must-Run Generation, unless Vernon notifies the ISO that
it desires to participate in the RMR Unit designation process. To the extent
Vernon does not notify the ISO that it desires to participate in the RMR Unit
designation process, the ISO agrees not to designate any Vernon Generating
Units as RMR Units provided Vernon agrees that, in circumstances affecting
local reliability of the ISO Controlled Grid that would otherwise be mitigated by
RMR Units, any Generation not being used to serve Vernon Load and other firm
power sales obligations will be made available to the ISO, subject to Article VII of
this Agreement.
8,3 Voltage Support, Vernon shall maintain stable operating parameters and control
of real and reactive power flows in accordance with the Laguna Ben-Vernon
Interconnection Service Agreement between SCE and Vernon (or a replacement
agreement provided that any replacement agreement preserves Vernon's
obligations to maintain stable operating parameters and control of real and
reactive power flows in coordination with SCE in a manner that meets the
requirements of the ISO Tariff and the operation standards set forth in Schedule .
2), which is incorporated herein by reference.
8.4 Black Start, Vernon shall either provide its own share of ISO Control Area Black
Start capability or, through its Scheduling Coordinator, shall bear a portion of the
ISO's Black Start costs in accordance with Section 13.7.
8.5 'Ancillary Services, Vernon's responsibility for the ISO Control Area
requirements of Ancillary Services shall be determined in accordance with the
ISO Tariff. If Vernon's Scheduling Coordinator schedules sufficient self-provided
capacity complying with the applicable requirements of the ISO Tariff, which
capacity is committed to th~ various required Ancillary Services, and maintains
the Ancillary Service capacity as available to the ISO for that purpose, Vernon's
Scheduling Coordinator shall not be required to purchase capacity in the ISO's
Ancillary Service markets. To the extent Vernon's Scheduling Coordinator does
not schedule sufficient capacity for this purpose, Vernon may, through its
Scheduling Coordinator, purchase the required capacity in the ISO's Ancillary
Service markets. To the extent Vernon's Scheduling Coordinator does not
maintain the availability of capacity committed to the ISO for Ancillary Services
for that purpose, the Scheduling Coordinator shall be responsible for the
applicable charges under the ISO Tariff.
8.6 Imbalance Energy, To the extent that Energy for the purpose of serving Load in
Vernon's System and exports from Vernon's System, including losses, is not
reflected in Schedules submitted by Vernon's Scheduling Coordinator and
delivered in real time, Vernon's shall be deemed {through its Scheduling
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Coordinator) to have purchased or sold Imbalance Energy in the ISO's
Imbalance Energy market. The ISO will settle with Vernon's Scheduling
Coordinator with regard to Imbalance Energy in accordance with the ISO Tariff.
If Vernon elects in accordance with Section 23.12 of the ISO Tariff to have its
Scheduling Coordinator follow Vernon's Load and exports from the MSS with
Vernon's resources and imports into the MSS, to the extent that the net
Imbalance Energy for all of Vernon's Loads and exports from the MSS, and
resources and imports into the MSS, is within Vernon's portfolio deviation band,
as specified in Section 13.12, Vernon's Scheduling Coordinator will not be
subject to costs or penalties, other than the cost of the Imbalance Energy itself.
To the extent that Vernon's Scheduling Coordinator is operating outside of its
portfolio deviation band, Vernon's Scheduling Coordinator shall be subject to
penalties as specified in Section 13.12. In following Load, Vernon's Scheduling
Coordinator may utilize any resource available to it, regardless of whether, or at
what level, that resource .is reflected in Schedules submitted by Vernon's
Scheduling Coordinator, except with respect to any portion of the capacity of a
resource for which Vernon's Scheduling Coordinator has submitted an Ancillary
Services capacity bid to the ISO for that resource or to the extent the ISO has
issued a System Emergency operating order consistent with Section 7.1.1.
ARTICLE IX
ACCESS TO THE ISO CONTROLLED GRID AND MARKETS
9.1 Access to the ISO Controlled Grid
9,1.1 Vernon shall have open and non-discriminatory access to the ISO Controlled
Grid for the scheduling of transactions that do not utilize Existing Contracts and
Encumbrances in accordance with the ISO Tariff and for other transmission
'services the ISO may provide in the future under the ISO Tariff, or under any
other appropriate regulatory avenue.
9,1.2 Vernon may use the ISO Controlled Grid in accordance with the ISO Tariff to buy
and sell electric products in the ISO's markets and in bilateral transactions with
other Market Participants.
9,2 Access to ISO Markets
9.2.1 Sales of Energy and Ancillary Services, Energy and Ancillary Services
produced by Vernon's Generating Units and Loads listed in Schedule 14 may be
sold in the ISO's markets on the terms applicable under the ISO Tariff to
Participating Generators and Participating Loads, respectively, as modified by
this Agreement. If Vernon's Scheduling Coordinator submits a bid for Energy or
Ancillary Services from a Generating Unit or Load listed in Schedule 14, Vernon
warrants to the ISO that it has the capability to provide that service in accordance
with the ISO Tariff and that it shall comply with ISO Dispatch Instructions for the
provision of the service in accordance with this Agreement. If Vernon's
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Scheduling Coordinator submits a bid for Energy or Ancillary Services from a
Generating Unit or Load within Vernon's System, any Energy produced from that
Generating Unit or reduced from Load shall be accordingly added or subtracted
to the calculation of Vernon's net metered Demand and exports from Vernon's
System for purposes of determining deliveries to Vernon's System in assessing
charges pursuant to Article XIII and consistent with Schedule 15.
9.2.2 Certification, Vernon shall not use a Scheduling Coordinator to submit a bid for
the provision of an Ancillary Service or submit a Schedule for the self-provision of
an Ancillary Service unless the Scheduling Coordinator serving Vernon is in
possession of a current certificate pursuant to Sections 2.5.6 and 2.5.24 of the
ISO Tariff.
9.2,3 Supplemental Energy and Ancillary Service Bids. Bids in the ISO's
Supplemental Energy and Ancillary Service markets may only be submitted by
Vernon's Scheduling Coordinator.
9.2.4 Black Start and Voltage Support, Vernon or its Scheduling Coordinator shall
be entitled to bid its Generating Units and the resources on Vernon's System in
any open solicitation held by the ISO for Black Start or Voltage Support services,
provided that the supply of any service by Vernon shall not impair its ability to
provide the service it is required by Article VIII of this Agreement to provide for
Vernon's System, and, if the services are sold to the ISO, Vernon or its
Scheduling Coordinator shall provide such services in accordance with the ISO
Tariff.
ARTICLE X
GENERATING UNITS AND MARKET-PARTICIPATING LOADS
10.1 Identification of Resources, Vernon has identified in Schedule 14 the
individual Generating Units and Loads proposed for participation in the ISO's
markets that it owns, operates or to which it has a contractual entitlement that are
included in Vernon's System.
10,1.1 Technical Characteristics. Vernon has provided to the ISO in Schedule 14 the
required information regarding the capacity and operating characteristics of each
of the Generating Units and loads listed in that schedule. The ISO may verify,
inspect, and test the capacity and operating characteristics provided in Schedule
14, and any changes thereto made pursuantto Section 10.1.2 of this Agreement,
in accordance with Section 2.5.25 of the ISO Tariff.
10.1.2 Notification of Changes, Vernon shall notify the ISO sixty (60) days prior to any
change to the information provided in Schedule 14, provided that such notice
shall not be required for changes to parameters of operating limitations set forth
in Schedule 14, which shall be made in accordance with the ISO's Operating
Procedures. The Parties shall amend Schedule 14, as applicable, to reflect that
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change. Subject to such notification, and verification, inspection, and testing in
accordance with Section 10.1.1, but without waiting for the execution and
effectiveness of an amended Schedule 14, the Parties shall implement any new
information for a Generating Unit or Load identified in Schedule 14 upon the
effective date for the next scheduled update to the ISO's Master File.
10.1.3 Nothing in this section shall preclude Vernon from informing the ISO of changes
in limitations on the operation of a Generating Unit, as provided in Section 7.1 of
this Agreement, or to comply with environmental laws and regulations, provided
that Vernon provides the ISO with advance notice of any changes in such
limitations.
10,2 Generating Unit Operation
10.2.1 Vernon shall install and maintain direct telemetry links to the ISO's EMS system
for each Vernon Generating Unit under Vernon control that enables the ISO to
view the status, voltage, and output of the Generating Unit and ISO certified
meters that transmits data automatically to the ISO's meter data acquisition
system. Vernon shall calcuate and specify to the ISO any distribution loss factor
applicable to its Generating Units.
10.2.2 If Vernon, through its Scheduling Coordinator, chooses to supply Regulation or
self-provide Regulation from a Generating Unit, it must provide the ISO with
control over the Generating Unit providing Regulation and place the Generating
Unit on Automatic Generation Control ("AGC") responsive to the ISO's
Regulation signal. Regulation service shall be provided in accordance with the
ISO Tariff. Vernon or its Scheduling Coordinator may adjust output of Vernon's
Generating Units, in response to Vernon's Load following needs, if elected in
accordance with Section 23.12 of the ISO Tariff, provided that, if Vernon is
providing Regulation to the ISO from any Generating Unit, it may not adjust the
output of that Generating Unit unless the integrity of the ISO's Regulation signal,
and the continuous responsiveness of such Generating Unit, via AGC, to the
ISO's Regulation signal, is not compromised. If the ISO determines that the
integrity of the ISO's Regulation signal or the continuous responsiveness to the
ISO's Regulation signal is compromised, Vernon's Generating Unit shall be
deemed not to have provided the Regulation, and Vernon shall be subject to the
provisions of the ISO Tariff applicable to failure to provide Regulation. To the
extent that Vernon chooses not to provide Regulation from a Vernon Generating
Unit, the ISO shall not control the Generating Unit via a direct link between the
ISO and the Generating Unit without Vernon's consent.
10.3 ISO Authority to Dispatch Vernon Resources, The ISO's authority to Dispatch
any portion of the capacity of any Generating Unit of Vernon, other than in
accordance with a bid submitted to the ISO by Vernon's Scheduling Coordinator,
is set forth in and subject to Section 7.1 of this Agreement.
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10.4 WECC Requirements Applicable to Participating Generators
10.4.1 Reliability Criteria, Vernon shall comply with the requirements of Section 5.4 of
the ISO Tariff applicable to Participating Generators.
10.4.2 Payment of WECC Sanctions. Vernon shall be responsible for payment directly
to the WECC of any monetary sanction assessed against Vernon by the WECC,
as provided in Section 5.4.3 of the ISO Tariff.
ARTICLE XI
SCHEDULING
11.1 Scheduling Coordinator, All Schedules submitted on behalf of Vernon for the
delivery of Energy and Ancillary Services to Loads in Vernon's System and for
exports from Vernon's System shall be submitted by a Scheduling Coordinator
certified in accordance with the applicable provisions of the ISO Tariff that has
entered into a Scheduling Coordinator Agreement with the ISO that is currently in
effect. The Scheduling Coordinator may be Vernon itself or a Scheduling
Coordinator designated by Vernon.
11.2 Self-Provided Energy and Ancillary Services, Vernon may self-provide all or
any portion of its obligation for Energy and Ancillary Services. Whether or not
Vernon engages in such self-provision, Vernon's Scheduling Coordinator shall
include the gross output, less auxiliary load, of each Generating Unit and import
from which Vernon meets that obligation and the gross Load served on Vernon's
System and gross exports from Vernon's System in Schedules submitted to the
ISO. If the ISO amends the ISO Tariff to relieve Scheduling Coordinators of the
obligation to schedule gross Generation, imports, Loads, and exports, and the
amendment would have applied to Vernon in the absence of this Agreement, the
Parties shall negotiate an amendment to this Agreement to conform the
obligations of this section to the modified procedures.
11.3 Scheduling Timelines. Vernon's Scheduling Coordinator shall submit all
Schedules, including Schedules for the use of its Existing Contracts and
Encumbrances, Schedules for the use of the ISO Controlled Grid as a new firm
use, and Schedules for the self-provision of Energy and Ancillary Services, within
the timelines established by the ISO Tariff.
11.4 Load Following Resources. Schedule 14A identifies each power resource
authorized for use by Vernon's Scheduling Coordinator in following Vernon's
load.
11.4.1 The ISO may file with the FERC to remove a resource from Schedule
14A if the ISO determines that a resource identified in Schedule 14A
adversely affects the reliable operation of the ISO Control Area. The ISO
shall provide notice to Vernon at least 60 days in advance of such a
22
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filing. Such notice to Vernon shall be accompanied by an ISO
explanation of the grounds on which the ISO asserts that the resource
adversely affects the reliable operation of the ISO Control Area.
11.4.2 Vemon may add additional resources to Schedule 14A through the
following procedures. Vernon shall provide notice to the ISO 60 days in
advance of the proposed date of an ISO filing at FERC to implement the
addition of a resource to Schedule 14A. Within 60 days of such notice,
the ISO must file at the FERC to add the resource to Schedule 14A
unless, within that 60 day period, the ISO determines and notifies Vernon
that such resource would adversely. affect reliable operation of the ISO
Control Area. Notice of such determination shall be accompanied by an
ISO explanation of the grounds on which the ISO asserts that such
resource would adversely affect the reliable operation of the ISO Control
Area. If Vernon disagrees with an ISO determination that a resource
Vernon proposes to add to Schedule 14A, would adversely affect reliable
operation of the ISO Control Area, Vernon may bring a complaint at the
FERC for a FERC determination of whether the resource would adversely
affect reliable operation of the ISO Control Area, and thus whether the
resource is to be added to Schedule 14A.
11.4.3 In no case shall resources located within Vernon's System be removed by
the ISO from Schedule 14A or be rejected by the ISO for addition to
Schedule 14A.
ARTICLE XII
METERING
12.1 Vernon shall ensure installation of ISO-certified revenue quality meters and
associated equipment at or near (a) the Points of Delivery and, (b) at each bus to
which one or more Generating Units is connected and the associated Generating
Units auxiliary load.
12.2 The provisions of the ISO Tariff applicable to ISO Metered Entities shall apply to
Vernon, subject to the particular rights and obligations of the Parties with respect
to metering set forth in Schedule 15, including access to and testing of Vernon's
meters.
12.3 The calculation of Vernon's Settlement Quality Meter Data shall be in accordance
with Schedule 15.
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ARTICLE XIII
CHARGES
13,1 Charges Generally, Except as may be provided otherwise in the provisions of
this Article XIII, Vernon's Scheduling Coordinator shall be responsible for
charges incurred in accordance with the ISO Tariff, provided that nothing in this
Agreement snail prohibit Vernon from challenging the allocation of any new
charge under the ISO Tariff to Vernon on the ground that the proposed charge is
not appropriately assessed against a MSS Operator, or on any other ground.
Further, except as specifically provided in this Agreement, Vernon shall only be
responsible for charges allocated by the ISO Tariff to Participating TOs if it is a
Participating TO, as provided in Section 3.3.7.
13.2 Transmission Losses, Vernon's Scheduling Coordinator shall be responsible
for transmission losses, in accordance with the ISO Tariff, only for the delivery of
Energy to Vernon's System or from Vernon's System, provided Vernon fulfills its
obligation to provide for transmission losses on the transmission facilities forming
part of Vernon's System in accordance with Section 5.5 of this Agreement. A
Generation Meter Multiplier ("GMM") shall be assigned to Vernon's Generating
Units for use of the ISO Controlled Grid. That GMM shall be 1.0 for all
Generating Units within Vernon's System that are located at or behind a Point of
Interconnection, to the extent that the Load at the Point of Interconnection for that
portion of Vernon's System exceeds the amount of Generation produced by the
Generating Units connected to that portion of Vernon's System.
13.3 Congestion Costs. Vernon's Scheduling Coordinator shall be responsible for
Usage Charges and Grid Operations Charges, and any successor charges
through which the ISO collects Congestion costs from Scheduling Coordinators,
in accordance with the ISO Tariff only with respect to Vernon's Scheduling
Coordinator's delivery of Energy and Ancillary Services to Vernon's System or
from Vernon's System, including Vernon's Scheduling Coordinator's delivery of
Energy and Ancillary Services from Vernon's Generating Units to Vernon's
System Loads other than Loads within the same Service Area to which the
Generating Units are connected, provided that the ISO is not responsible to
manage Congestion on Vernon's System and at the Points of Interconnection in
accordance with Section 5.5 of this Agreement.
13,4 Unaccounted-For Energy Costs. Vernon's Service Area shall be treated as a
Utility Distribution Company Service Area for purposes of allocating responsibility
for Unaccounted-for Energy costs in accordance with the ISO Tariff.
13,5 Reliability Generation, Vernon shall be responsible for the costs of maintaining
the reliability of facilities in Vernon's System, including costs of Generating Units
operated by or on behalf of Vernon for that purpose. If and to the extent Vernon
does not maintain sufficient Generation, then Vernon may be assessed costs
incurred by the ISO to support the reliability of Vernon's System.
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13,6 Voltage Support Costs, If and to the extent Vernon does not satisfy the Voltage
Support obligations set forth in accordance with Section 8.3 of this Agreement, ,
Vernon's Scheduling Coordinator shall bear a proportionate share of the ISO's
Voltage Support cost in accordance with the ISO Tariff.
13.7 Black Start Costs. If and to the extent Vernon does not provide its own Black
Start capability in accordance with Section 8.4 of this Agreement, Vernon's
Scheduling Coordinator shall bear a proportionate share of the ISO's Black Start
cost in accordance with the ISO Tariff.
13.8 Neutrality Costs. Vernon's Scheduling Coordinator's obligation to pay neutrality
adjustments and Existing Contracts cash neutrality charges (or collect refunds)
shall be based on Vernon's net metered Demand and exports from the ISO
Control Area.
13.9 Peak Reliability Costs. Vernon, through its Scheduling Coordinator, shall have
the option to avoid any share of the ISO's costs for any peak Demand reduction
program or for any peak reliability Generation procurement program pursuant to
ISO Tariff Section 2.3.5.1.8. In order to avoid such costs, Vernon shall secure
capacity reserves on an annual basis at least equal to fifteen percent (15%) of its
annual peak Demand responsibility, and shal provide documentation to the ISO
of the resources proposed to meet that peak Demand responsibility plus such
capacity reserves. Such capacity reserves may include peaking capacity and
Demand reduction programs. To the extent that Vernon demonstrates i1s
provision of capacity reserves, Vernon's Scheduling Coordinator shall not be
obligated to bear any share of the ISO's costs for any peak Demand reduction
program or for any peak reliability Generation procurement program pursuant to
ISO Tariff Section 2.3.5.1.8,
13,10 Generating Unit Minimum Load, Emissions, and Start-Up Costs. If the ISO
is compensating Generating Units for Minimum Load Costs, Emissions Costs,
and Start-Up Costs, and if Vernon has elected to follow its Load in accordance
with Section 8.6, the n Vernon shall elect either the option set forth in Section
13.10,1 or the option set forth in Section 13.10.2. If Vernon has not elected to
follow its Load in accordance with Section 8.6, then Vernon may not elect the
option set forth in Section 13.10.2, and shall elect either the option set forth in
Section 13.10.1 or the option set forth in Section 13.10.3.
13,10.1 Vernon may elect to be eligible for recovery of Minimum load Costs and
charge the ISO for the Emissions Costs and Start-Up Costs of the Generating
Units serving the Load of Vernon's System whether following its Load or not If
Vernon makes such election, then Vernon's Scheduling Coordinator shall bear its
proportionate share of the total amount of those costs incurred by the ISO in
accordance with IS 0 Tariff Sections: 2.5.23.3.6.1, 2.5.23.3.7.1, and 5.11.6.1.4.
13,10.2 If Vernon has elected to follow its Load in accordance with Section 8.6,
Vernon may elect not to be eligible for recovery of Minimum load Costs and
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choose not to charge the ISO for the Emissions Costs and Start-Up Costs of the
Generating Units serving the Load of Vernon's System. If Vernon makes such
election, then Vernon's Scheduling Coordinator shall bear its proportionate share
of the total amount of those costs incurred by the ISO based on Vernon's Net
Negative Uninstructed Deviations.
13,10.3 If Vernon has elected not to follow its Load in accordance with Section
8.6, Vernon may elect not to be eligible for recovery of Minimum Load Costs and
choose not to charge the ISO for the Emissions Costs and Start-Up Costs of the
Generating Units serving the Load of Vernon's System. If Vernon makes such
an election, then Vernon's Scheduling Coordinator shall be allocated Emissions
Costs and Start-Up Costs in accordance with ISO Tariff Section 23.16.3 and shall
be allocated Minimum Load Costs in accordance with ISO Tariff Section
5.11.6.1.4, except that the allocation of Minimum Load Costs pursuant to ISO
Tariff Section 5.11.6.1.4(2) and 5.11.6.1.4(3){a) shall be based on Vernon's net
metered Demand and exports.
13.10.4 Vernon shall make the election whether to be eligible for Minimum Load
Cost recovery and charge the ISO for the subject Generating Unit Emissions
Costs and Start-Up Costs annually by November 1 for the following calendar
year.
13,11 Grid Management Charge Adjustment for MSS Load Following, If the ISO is
charging Grid Management Charges for uninstructed deviations (currently the
Energy Transmission Services Uninstructed Deviations Charge anda portion of
the Market Usage Charge). and if Vernon's Scheduling Coordinator has
uninstructed deviations associated with Load following from resources listed in
Schedule 14A, then the ISO will net the Generation and imports into the MSS to
match the Load and exports out of the MSS, and will not assess Grid
Management Charges associated with uninstructed deviations for such portion of
Energy that is used to match MSS Load and net exports out of the MSS. If
Generation and imports into the MSS are above the amount to cover Load and
exports out of the MSS and were sold irto the ISO's Imbalance Energy market,
then Vernon's Scheduling Coordinator will only be charged Grid Management
, Charges associated with uninstructed deviations for this quantity. If Generation
and imports into the MSS are below the amount to cover Load and exports out of
the MSS, and Imbalance Energy is purchased from the ISO, then Vernon's
Scheduling Coordinator will only be charged Grid Management Charges
associated with uninstructed deviations for this quantity. Vernon's Scheduling
Coordinator will otherwise be assessed all components of the Grid Management
Charge in accordance with the ISO Tariff.
13.12 Deviation Band and Penalties Calculation, Subject to an election by Vernon
made in accordance with Section 23.12 of the ISO Tariff to have its Scheduling
Coordinator follow Load, the ISO will settle with Vernon's Scheduling Coordinator
with regard to Imbalance Energy, based on the applicable zonal or locational ex
post prices, in accordance with the ISO Tariff. For purposes of assessing
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penalties to Vernon's Scheduling Coordinator associated with operating outside
the portfolio deviation band described in Section 8.6, the portfolio deviation band
shall be three percent (3%) of the lesser of Vernon's metered or Hour-Ahead
scheduled Demand and exports from the MSS, adjusted for Forced Outages and
any ISO directed firm Load Shedding, for Vernon's portfolio as a whole.
Penalties for operating outside of the deviation band will be based on a price that
is the effective weighted average ex post price applicable to Vernon for the billing
interval If the metered Generation resources and imports into the MSS exceed
the Demand, exports from the MSS, and Energy expected to be delivered by
Vernon in response to the ISO's Dispatch instructions and/or Regulation set-point
signals issued by the ISO's AGC by more than the deviation band, then the ISO
will take back its payment for Imbalance Energy by assessing Vernon's
Scheduling Coordinator a penalty of one hundred percent (100%) ofthe amount
of Imbalance Energy that is outside the deviation band. If metered Generation
resources and imports into the MSS are deficient in meeting Demand, exports
from the MSS, and Energy expected to be delivered by Vernon in response to
the ISO's Dispatch instructions and/or Regulation set-point signals issued by the
ISO's AGC by more than the deviation band, then Vernon's Scheduling
Coordinator shall be assessed a two hundred percent (200%) penalty for the
amount of Imbalance Energy that is outside of the deviation band, in addition to
the rnbalance Energy charges that may be applicable. Vernon shall not oppose
the ISO's allocation of the proceeds of any deviation band penalties as an offset
to the ISO's Grid Management Charge.
13.13 Penalties for Failure to Provide Ancillary Services Capacity. The Parties
agree that Ancillary Services should be provided from the resources that the ISO
actually instructs to respond and that the resources instructed to deliver Ancillary
Services are expected to provide an incremental response consistent with the
standards for the Ancillary Service. However, since Vernon's Scheduling
Coordinator may simultaneously be undertaking economic trades or following
Loads using the same resource that the ISO has instructed to deliver Ancillary
Services, the ISO will incorporate Vernon's documented Load following
instructions into its evaluation of Ancillary Services compliance. Penalties for
failure to provide committed Ancillary Services capacity will be assessed by the
ISO in accordance with the ISO Tariff, on an indi\1dual Generating Unit basis,
whenever that capacity is considered to have not been made available to the
ISO. .If the ISO believes that a Vernon Generating Unit did not supply the
committed amount of Ancillary Services capacity or associated Energy, based on
the Ancillary Services capacity reservation, any instructions issued by the ISO to
Vernon or its Scheduling Coordinator to provide associated Energy, andthe
supporting meter data, when assessing penalties the ISO will give due
consideration to operational data that Vernon or its Scheduling Coordinator may
provide to demonstrate that the Generating Unit's output was being adjusted for
Load-following purposes as allowed by the terms of this Agreement and within
the Ancillary Services capacity not provided to the ISO. Additionally, the Parties
agree that the current equations for the settlement of real time Energy may under
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some circumstances result in Ancillary Services capacity penalties that are
inappropriate when the Generating Unit is being used simultaneously to follow
Load and provide Ancillary Services Energy.
13.14 Operating and Maintenance Costs. Vernon shall be responsible for all its costs
incurred in connection with procuring, installing, operating, and maintaining
Vernon's facilities, including the Generating Units and Loads listed in Schedule
14, for the purpose of maintaining Vernon's System.
13.15 Billing and Payment. Billing and payment will be in accordance with the ISO
Tariff.
ARTICLE XIV
PENALTIES AND SANCTIONS
14.1 Penalties. Vernon or its Scheduling Coordinator shall be subject to penalties
and/or sanctions for failure to comply with any provisions of this Agreement only
to the extent that (a) the penalty or sanction is set forth in the ISO Tariff and has
been approved by FERC; and (b) the ISO Tariff provides for the imposition of the
same penalty or sanction on a UDC, MSS Operator, or Participating Generator,
or Participating Load in the same circumstances. Nothing in this Agreement, with
the exception of the provisions of Article XV, shall be construed as waiving the
rights of Vernon to oppose or protest any penalty or sanction proposed by the
ISO to the FERC or the specific imposition by the ISO of any FERC-approved
penalty or sanction on Vernon.
14.2 Corrective Measures. If Vernon fails to meet or maintain the requirements set
forth in this Agreement or in the applicable provisions of the ISO Tariff, the ISO
shall be permitted to take any of the measures, contained or referenced herein or
in the applicable provisions of the ISO Tariff that the IS 0 deems to be necessary
to correct the situation.
ARTICLE XV
DISPUTE RESOLUTION
15.1 Dispute Resolution. The Parties shall make reasonable efforts to settle all
disputes arising out of or in connection with this Agreement. In the event any
dispute is not settled, the Parties shall adhere to the ISO ADR Procedures set
forth in Section 13 of the ISO Tariff, which is incorporated by reference, except
that any reference in Section 13 of the ISO Tariff to Market Participants shall be
read as a reference to Veroon and references to the ISO Tariff shall be read as
references to this Agreement.
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ARTICLE XVI
REPRESENTATIONS AND WARRANTIES
16.1 Representations and Warranties. Each Party represents and warrants that the
execution, delivery and performance of this Agreement by it has been duly
authorized by all necessary corporate and/or governmental actions, to the extent
authorized by law.
16.2 Necessary Approvals. Each Party represents that all necessary leases,
approvals, licenses, permits, easements, rights of way or access to install, own
and/or operate its facilities subjectto this Agreement have been or will be
obtained prior to the effective date of this Agreement.
ARTICLE XVII
LIABILITY AND INDEMNIFICATION
17.1 Liability and Indemnification. The provisions of Section 14 of the ISO Tariff will
apply to liability and indemnification arising under this Agreement, except that all
references in Section 14 of the ISO Tariff to Market Participants shall, be read as
references to Vernon and references to the ISO Tariff shall be read as references
to this Agreement.
ARTICLE XVIII
UNCONTROLLABLE FORCES
18.1 Section 15 of the ISO Tariff shall be incorporated by reference into this
Agreement, except that all references in Section 15 of the ISO Tariff to Market
Participants shall be read as a reference to Vernon and references to the ISO
Tariff shall' be read as references to this Agreement.
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ARTICLE XIX
MISCELLANEOUS
19.1 Notices. Any notice, demand or request which may be given to or made upon
either Party regarding this Agreement shall be made in writing to the employee or
official identified in Schedule 17 of this Agreement, and shall be deemed properly
given: (a) upon delivery, if delivered in person, (b) five (5) days after deposit in
the mail if sent by first class United States mail, postage prepaid, (c) upon receipt
of confirmation by return facsimile if sent by facsimile, or (d) upon delivery if
delivered by prepaid commercial courier service. A Party must update the
information in Schedule 17 as the information changes. Such changes shall not
constitute an amendment to this Agreement.
19.2 Waivers. Any waiver at any time by either Party of its rights with respect to any
default under this Agreement, or with respect to any other matter arising in
connection with this Agreement, shall not constitute' or be deemed a waiver with
respect to any subsequent default or other matter arising in connection with this
Agreement. Any delay, short of the statutory period of limitations, in asserting or
enforcing any right under this Agreement shall not constitute or be deemed a
waiver of such right.
19.3 Governing Law and Forum. This Agreement shall be deemed to be a contract
made under, and for all purposes shall be governed by and construed in
accordance with, the laws of the State of California, except its conflict of laws
provisions. The Parties agree that any legal action or proceeding arising under
or relating to this Agreement to which the ISO ADR Procedures do not apply
shall be brought in one of the following forums as appropriate: any court of the
State of California, any federal court of the United States of America located in
the State of California, or, where subject to its jurisdiction, before the Federal
Energy Regulatory Commission.
19.4 Merger. This Agreement constitutes the complete and final agreement of the
Parties with respect to the subject matter hereof and supersedes all prior
agreements, whether written or oral, with respect to the provisions of this
Agreement.
19.5 Counterparts. This Agreement may be executed in one or more counterparts at
different times, each of which shall be regarded as an original and all of which,
taken together, shall constitute one and the same Agreement.
19.6 Consistency with Federal Laws and Regulations. Nothing in this Agreement
shall compel either Party to violate federal statutes or regulations, or orders
lawfully promulgated thereunder. If any provision of this Agreement is
inconsistent with any obligation imposed on a Party by such federal statute,
regulation or order, to that extent, it shall be inapplicable to that Party. No Party
shall incur any liability by failing to comply with a provision of this Agreement that
is inapplicable to it by reason of being inconsistent with any such federal statutes,
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regulations, or orders lawfully promulgated thereunder; provided, however, that
such Party shall use its best efforts to comply with this Agreement, to the extent
that applicable federal laws, regulations, and orders lawfully promulgated
thereunder permit it to do so.
19.7 Severability. If any term, covenant, or condition of this Agreement or the
application or effect of any such term, covenant, or condition is held invalid as to
any person, entity, or circumstance, or is determined to be unjust, unreasonable,
unlawful, imprudent, or otherwise not in the public interest by any court or
government agency of competent jurisdiction, then such term, covenant, or
condition shall remain in force and effect to the maximum extent permitted by
law, and all other terms, covenants, and conditions of this Agreement and their
application shall not be affected thereby, but shall remain in force and effect and
the Parties shall be relieved of their obligations only to the extent necessary to
eliminate such regulatory or other determination unless a court or governmental
agency of compete nt jurisdiction holds that such provisions are not separable
from all other provisions of this Agreement.
19.8 Assignments. Either Party may assign its rights and obligations under this
Agreement, with the other Party's prior written consent, in accordance with
Section 17 of the ISO Tariff, which is incorporated by reference into this
Agreement. Such consent shall not be unreasonably withheld.
19.9 No Regional Transmission Organization or Participating TO Obligation:
Nothing in this Agreement shall obligate or commit Vernon to become a member
of any regional transmission organization (RTO) or to remain a Participating TO.
19.10 FERC Jurisdiction over Vernon. Vernon is not a "public utility" as currently
defined in the Federal Power Act and by entering into this Agreemert does not
consent to FERC jurisdiction or waive its rights to object to FERC asserting
jurisdiction over Vernon.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed on behalf of each by and through their authorized representatives as of the
date hereinabove written.
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION
By:
Name:
Title:
Date:
CITY OF VERNON
By:
Name:
Title:
Date:
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SCHEDULE 1
VERNON'S SYSTEM FACILITIES
[Section 1.2]
The following facilities form Vernon's System, including the Points of
Interconnection and Point of Delivery.
For Vernon:
A) Point Of Interconnection: Laguna Bell kV bus
The Point of Interconnection of the City of Vernon to the ISO Control Area
grid is at Line Disconnect Switches 45,46,47,48, and 49 which are in the
66 kV lines emanating from the Laguna Bell 66 kV bus that go to the City
of Vernon's system.
B) Point of Delivery: Laguna Bell 230 kV bus
The interface between the City of Vernon and the ISO Controlled Grid is at
the Laguna Bell 230 kV bus, which is the Point of Delivery for transactions
in the ISO wholesale market.
C) Vernon Load
At Laguna Bell 230 kV bus interconnections (SP15 Demand Zone)
D) Generation Facilities: H. Gonzales Units #1 and #2
Malburg Generation Station
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SCHEDULE 2
OPERATION STANDARDS
[Section 4.2]
The ISO shall maintain stable operating parameters and control of real and reactive
power flows in accordance with the following Operation Standards. Vernon shall
maintain stable operating parameters and control of real and reactive power flows in
accordance with the Laguna Bell-Vernon Interconnection Service Agreement between
SCE and Vernon (or a replacement agreement provided that any replacement
agreement preserves Vernon's obligations to maintain stable operating parameters and
control of real and reactive power flows in coordination with SCE in a manner that
meets the requirements of the ISO Tariff and in accordance with Section 8.3 of this
Agreement and this Schedule 2), which is incorporated herein by reference.
Vernon Responsibilities
1.0 Vernon shall operate the facilities of Vernon's System in such manner as to avoid
any material or adverse impact on the ISO Control Area. In accordance with this
performance goal, Vernon shall:
1.1 Operate the facilities of Vernon's System and maintain protective systems and
reactive power flows at each Point of Interconnection within established
operating parameters including normal ratings, emergency ratings, voltage limits,
and balance of Load between electrical phases in accordance with the Laguna
Bell-Vernon Interconnection Service Agreement between SCE and Vernon (or a
replacement agreement that meets the requirements described above).
ISO Responsibilities
2.0 The ISO shall operate the ISO Controlled Grid in such manner as to avoid any
material or adverse impact on Vernon facilities. In accordance with this
performance goal, the ISO shall:
2.1 Participate with Vernon and SCE in the development of joint power quality
. performance standards and jointly maintain compliance with such standards.
2.2 Observe Vernon grid voltage limits specified in Attachment 1 including
requirements for reduced voltage on ISO Controlled Grid facilities which apply
during heavy fog (or other unusual operating conditions) as needed to minimize
the risk of insulator flashover. Any anticipated reduction in operating. voltages on
ISO Controlled Grid facilities shall be studied and established by Vernon and the
ISO.
2.3 Approve Vernon's maintenance requests in a timely manner for transmission
facilities that impact the ISO Controlled Grid, and shall not unreasonably withhold
34
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approval of such requests for authorization to perform energized insulator
washing work or to take planned Outages needed ,to replace or insul-grease
insulators.
2.4 Support Vernon investigation of power quality incidents, and provide related data
to Vernon in a timely manner.
2.5 Support installation of apparatus on the ISO Controlled Grid to improve power
quality, and take all reasonable measures to investigate and mitigate power'
quality concerns caused by actions or events in neighboring systems or Control
Areas:
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SCHEDULE 2
ATTACHMENT 1
VERNON GRID VOLTAGE LIMITS
There are no Vernon grid voltage limitations at the present time.
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SCHEDULE 3
RIGHTS OF ACCESS TO FACILITIES
[Section 4.5.1]
1.0 Equipment Installation. In order to give effect to this Agreement, a Party
that requires use of particular equipment (the equipment owner) may require
installation of such equipment on property owned by the other Party (the
property owner), provided that the equipment is necessary to meet the
equipment owner's service obligations and that the equipment shall not have
a negative impact on the reliability of the service provided, nor prevent the
property owner from performing its own obligations or exercising its rights
under this Agreement.
1.1 Free Access. The property owner shall grant to the equipment owner free of
charge reasonable installation rights and rights of access to accommodate
equipment inspection, maintenance, repair, upgrading, or removal for the
purposes of this Agreement, subject to the property owner's reasonable
safety, operation~l, and future expansion needs.
1.2 Notice. The equipment owner shall provide reasonable notice to the property
owner when requesting access for site assessment, equipment installation, or
other relevant purposes. Such access shall not be provided unless the
parties mutualy agree to the date, time,and purpose of each access.
Agreement on the terms of the access shall not be unreasonably withheld or
delayed.
1.3 Removal of Installed Equipment. Following reasonable notice, the
equipment owner shall be required, at its own expense, to remove or relocate
equipment, at the request of the property owner, provided that the equipment
owner shall not be required to do so if it would have a negative impact on the
reliability of the service provided, or would prevent the equipment owner from
performing its own obligations or exercising its rights under this Agreement.
1.4 Costs. The equipment owner shall repair at its own expense any property
damage it causes in exercising its rights and shall reimburse the property
owner for any other reasonable costs that it may be required to incur to
accommodate the equipment owner's exercise of its rights under Section 4.5
of this Agreement.
2.0 Rights to As~ets. The Parties shall not interfere with each other's assets,
without prior written agreement.
3.0 Inspection of Facilities. In order to meet their respective obligations under
this Agreement, each Party may view or inspect facilities owned by the other
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cfrv OF VERNON MSS AGREEMENT
Party. Provided that reasonable notice is given, a Party shall not
unreasonably deny access to relevant facilities for viewing or inspection by
the requesting Party.
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SCHEDULE 4
MAINTENANCE COORDINATION
[Section 5.1.2]
By October 15th of each year, Vernon shall exchange with the ISO a provisional planned
outage program for all lines and equipment in Schedule 1. That document will be
updated quarterly and as changes occur to the proposed schedule.
The ISO shall approve all proposed outages on the generating facilities listed on
Schedule 1 unless a proposed outage would cause the ISO to violate Applicable
Reliability Criteria. Approval of outages shall not be unreasonably withheld.
Applications for scheduled work shall be submitted to the ISO by Vernon via means to
be agreed to by both Parties. The documents submitted by Vernon shall record the
details for all work and become the database for reporting and recording outage
information.
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SCHEDULE 5
CRITICAL PROTECTIVE SYSTEMS
[Section 5.3]
Distribution protective relay schemes affecting the ISO Controlled Grid are those
associated with transformers that would trip transmission breakers and/or busses when
activated. These would include any of the following:
1. High Side Overcurrent Relays
2. Differential Overcurrent Relays
3. Sudden Pressure Relays
4. Low Oil Relays
5. Neutral Ground Overcurrent Relays
6. On fuse protected transformers, it would be the high-side fuses.
With respect to Vernon, operational control and maintenance responsibilities related to
the facilities described above reside with SCE.
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SCHEDULE 6
OPERATIONAL CONTACTS
[Section 5.4]
[PRIVILEGED MATERIAL REDACTED PURSUANT TO
18 C.F.R. ~ 388.112]
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[PRIVILEGED MATERIAL REDACTED PURSUANT TO
18 C.F.R. ~ 388.112]
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SCHEDULE 7
EMERGENCIES
[Section 7.2]
The ISO shall notify Vernon's Electric System Dispatcher, as identified in Schedule 6, of
the emergency, including information regarding the cause, nature, extent, and potential
duration of the emergency. Depending on the nature of the emergency and the
particular response required, such notification shall be made to Vernon either directly by
the ISO or through the Area Control Center (ACe) specified by the ISO, currently the
SCE ACC. The Vernon Electric System Dispatcher shall make the appropriate
notifications within the Vernon organization. The Vernon Electric System Dispatcher
shall then take such actions as are appropriate for the emergency in accordance with
Section 7 of this Agreement.
Vernon shall make requests for real-time information from the ISO regarding
emergencies through contacts to the ISO's Operations Shift Manager, by Vernon's
Electric System Dispatcher, or Vernon's Communication Coordinator may coordinate
public information with the ISO Communication Coordinator.
Vernon is required to estimate service restoration by geographic areas, and shall use its
call center and the media to communicate with customers during service interruptions.
Vernon will communicate necessary information to appropriate state, local
governmental entities, and its customers as needed. For Vernon outages that may be
caused by events affecting the transmission system, the Vernon Electric System
Dispatcher will make appropriate notifications to the ISO of any information related to
the outage such as cause, nature, extent, potential duration and customers affected.
Non-confidential Vernon and non-confidential ISO data recorded in ISO Grid Control
Center logs, Electric Switching Orders and Energy Management System temporal
database will be used in preparation of outage reviews. These documen1s are defined
as the chronological record of the operation of the activities which occur with the portion
of the electrical system assigned to that control center. The log shall contain all
pertinent information, including orders received and transmitted, relay operations,
messages, clearances, accidents, trouble reports, daily switching program, etc.
Vernon shall retain records in accordance with its standard practices for record retention
for not less than six years.
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SCHEDULE 8
UNDERFREQUENCY LOAD SHEDDING
[Section 7.4.1]
The objective of the Underfrequency Load Shedding ("UFLS") program is to provide
security and protection to the interconnected bulk power network by arresting frequency
decay during periods of insufficient resources.
This plan establishes Underfrequency Load Shedding objectives consistent with
the Load Shedding policies of the Western Electricity Coordinating Council, the North
American Electric Reliability Council and Vernon. Vernon's UFLS program is set forth in
its UFLS Procedures and pursuant to the Laguna Bell-Vernon Interconnection Service
Agreement with SCE. Such agreement provides that Vernon's load shedding
equipment will be compatible and coordinated with Edison's load shedding equipment
and that Edison will settheamount to be shed.
Vernon currently maintains an Underfrequency Load Shedding Procedure under
Electrical Operating Procedure (EOP) No.7, as revised October 18, 2005, which is
attached hereto and incorporated herein by reference. This procedure is in support of
SCE's System Operating Bulletin (SOB) No. 115.
Vernon shall develop a separate UFLS program prior to such time as the SCE
plans described above may cease to apply to Vernon. Upon such replacement program
Vernon shall comply with directions from the ISO to implement Vernon's Load Shedding
program in accordance with the WECC Off-Nominal Frequency Load Shedding and
Restoration Plan (Final Report November 25,1997, as revised December 5,2003 or as
it may be amended by the WECC from time to time). Vernon's UFLS program shall
utilize WECC planning criteria in this area. Per WECC requirements, UFLS shall be on
the feeder side of the transformer.
This Schedule will be revised to incorporate that separate UFLS program by
reference upon its implementation by Vernon. Vernon shall notify the ISO of any
changes to its existing UFLS program prior to implementation of such changes. At no
time shall Vernon be exempt from either participating in an ISO-sanctioned third party
UFLS program (currently with SCE) or implementing such program independently in full
compliance with WECC requirements.
Vernon shall also comply with directions from the ISO to implement the
requirements ofthe WEeC Southern Island Load Tripping Plan (July 22,1997, or as it
may be amended by the WECC from time to time) ("SIL T"), to the extent Vernon's
compliance with SILT requirements is not satisfied through Vernon's UFLS program.
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[PRIVILEGED MATERIAL REDACTED PURSUANT TO
18 C.F.R. ~ 388.112]
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eITY OF VERNON MSS AGREEMENT
SCHEDULE 9
OTHER AUTOMATIC LOAD SHEDDING
[Section 7.4.1]
Vernon currently employs an automatic Underfrequency Load Shedding program only,
as described in Schedule 8. At present Vernon does not utilize an under-voltage Load
Shedding program.
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SCHEDULE 10
MANUAL LOAD SHEDDING
[Section 7.4.3]
Vernon currently maintains a plan, under Electric Operating Procedure No. 20 as
revised June 28,2004 which is attached hereto, whereby nonessential distribution
circuits are subjected to manual shedding and rotating service interruptions when
required by Southern California Edison Company (SCE) in accordance with SCE
System Operating Bulletin No. 21 and its applicable Attachments and the Laguna Bell-
Vernon Interconnection Service Agreement between SCE and Vernon (or a _
replacement agreement provided that any replacement agreement preserves Vernon's
obligations in accordance with this Schedule 10), both of which are incorporated herein
by reference. Until such time as Vernon implements a plan for manual Load Shedding
and rotating service interruptions independent of SCE, Vernon shall continue to operate
in accordance with the existing plan.
Vernon shall develop a separate manual Load Shedding program prior to such time as
the SCE plans described above may cease to apply to Vernon. This Schedule will be
revised to incorporate that separate manual Load Shedding program by reference upon
its implementation by Vernon.
46
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[PRIVILEGED MATERIAL REDACTED PURSUANT TO
18 C.F.R. fi 388.112]
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SCHEDULE10A
ROTATING LOAD CURTAILMENT PROCEDURES
[Section 7.4.3]
Vernon rotating Load curtailment procedures are described in Schedule 10. To
maintain the required amount of continuously interrupted Load, as directed by the ISO,
for an extended amount of time, no portion of Vernon's interrupted Load shall be
restored unless an equal or greater amount of Load is interrupted first, as necessary to
maintain the required amount of interrupted Load.
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CITY OF VERNON MSS AGREEMENT
SCHEDULE10B
INTERRUPTIBLE LOAD
[Section 7.4.3]
Vernon has not implemented a program for interruptible Loads.
Should Vernon seek to implement any interruptible Load program, Vernon shall provide
a complete description of the program to the ISO at least sixty (60) days prior to the
incorporation of the program into the Vernon EEP, and all applicable Operating
Procedures shall be followed.
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SCHEDULE 11
ELECTRICAL EMERGENCY PLAN
[Section 7.5.1]
The City of Vernon currently supports SCE's EEP program as reflected in
Vernon's Electric Operating Procedure No.7 which is incorporated herein by
reference pursuant to Schedule 8 and Vernon's Electric Operating Procedure No.
20, which is incorporated herein by reference pursuant to Schedule 10.
For purposes of this Agreement, Vernon and the ISO agree that the Vernon EEP
shall be interpreted to provide that:
1) Vernon shall continue to act upon ISO instructions in accordance with the
provisions of Article VII and cause the required amount of Vernon firm Load to
be interrupted during any hour of any day (24 x 7);
2) Vernon shall satisfy its requirement to interrupt the required amount of firm
Load within ten minutes from the time of notification by the ISO dispatcher;
3) the implementation of any substitution of back-up generation and "voluntary"
Load interruptions, on an "as-available" basis, for the required amount of firm
Load interruption, as set out in the Vernon EEP and incorporated herein by
reference, shall not obviate or interfere with required timely compliance;
4) should Vernon use, wholly or partially, any combination of back-up generation
or "voluntary" Load interruption to substitute for an amount of its firm Load
interruption obligation, the effects of such substitution shall be no different
than those that would have resulted from an equivalent amount of firm Load
interruption without such back-up generation or voluntary Load interruption,
and the actual cumulative effect(s) of such substitution shall be subject to the
same rules of verifiability and reporting as those for the firm Load
conventionally interrupted on such occasions; and
5) should rotation of Vernon's firm Load blocks be required to maintain a
minimum amount of continuously interrupted Load, as defined by the ISO
dispatcher in accordance with the provisions of Article VII, for an extended
amount of time, no block of Vernon's firm Load shall be restored unless an
equal or greater amount of another block of Load is interrupted first, and in
the event Vernon uses any combination of substitutions for its firm Load
interruption obligation as permitted in section 4) above, any rotation of, or
changes to, such substitutions shall be made such that the equivalent
required Load relief level is maintained during the entire applicable time.
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SCHEDULE 12
LOAD RESTORATION
[Section 7.4.4]
Vernon shall follow the procedures set forth below in this Schedule 12 in promoting
orderly, coordinated restoration of electric systems after a major system disturbance
has occurred which resulted in Load Shedding by frequency relays in California.
1. Immediately after Load Shedding by frequency relay(s) has occurred in
Vernon's System, Vernon shall remain in contact with the Area Control
Center (ACC) specified by the ISO, currently the SCE ACC, until normal
frequency has been restored throughout the ISO Control Area or the ISO
Shift Manager has concluded that such full-time communications can be
terminated. Emergency communications over the California ACC Hot-line
will be under the direction of the ISO Shift Manager and the senior
dispatcher present at the SCE ACC(s).
2. Manual Load restoration shall not normally be initiated until the California
ACC Hot Line is attended. No Load is to be manually restored unless
directed by the ISO, either directly or through its assignee, provided that
the procedure for the ISO's designation of any assignee is agreed to by
Vernon, after the frequency has recovered and there is indication that the
frequency can be maintained. Vernon shall await direction from the ISO
or its assignee, who will be in contact with the ISO Shift Manager. The
ISO Shift Manager shall determine whether adequate Generation
resources are available on line to support the Load to be restored.
3. Vernon's automatic Load restoration will be consistent with the WECC
Coordinated Off-Nominal Frequency Load Shedding and Restoration Plan.
4. If the ISO cannot meet the WEeC and NERC Control Area Disturbance
Control Standard or the Control Performance Standard post disturbance,
no manual Load restoration shall be permitted. If the frequency is such
that automatic Load restoration occurs under these conditions, if Vernon
has restored Load automatically, it will manually shed an equivalent
amount of Load to offset the Load which was automatically restored.
5. Restoration of ties and off-site power supply to nuclear generating facilities
should be given top priority. Manual Load restoration will be deferred
during periods of tie restoration. Vernon should be equipped and
prepared to drop Load manually when necessary to allow frequency
recovery sufficient to re-establish ISO intra-area ties and ties between the
ISO Control Area and outside systems. Where manual Load shedding is
required, the ISO shall make reasonable efforts to allocate the Load
Shedding requirement equitably among Vernon, UDCs, and MSS
Operators where Load Shedding shall be beneficial, and such Load
Shedding shall be made in accordance with Section 7.4.
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6. Vernon shall use its existing plans and priorities to restore Load within the
parameters given by the ISO, giving the appropriate priority to essential
services such as military, public safety agencies, water treatment plants,
sewage treatment plants, etc.
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ellY OF VERNON MSS AGREEMENT
SCHEDULE 13
[NOT USED]
52
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SCHEDULE 14
GENERATING UNITS AND MARKET-PARTICIPATING LOADS
[Section 10.1]
Vernon has identified in the attached table all of the individual Generating Units that it
owns or controls in the ISO Control Area, together with certain information required by
the ISO. Vernon does not currently have any Curtailable Demand eligible to participate
in the ISO's markets as market-participating Load.
53
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[PRIVILEGED MATERIAL REDACTED PURSUANT TO
18 C.F.R. fi 388.112]
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ellY OF VERNON MSS AGREEMENT
SCHEDULE 14A
GENERATING UNITS AND MARKET-PARTICIPATING LOADS
[Section 11.4]
1. Vernon's Generating Units
a. Malburg Generating Station including CTG Unit 1 & 2 and STG Unit 3
b. H. Gonzales Unit 1 & 2
2. Vernon's Entitlement from the Boulder Canyon Power Project (Hoover Dam)
through Vernon power purchase agreement with Western Area Power
Administration.
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ellY OF VERNON MSS AGREEMENT
SCHEDULE 15
METERING OBLIGATIONS
[Section 12.2]
Obliaations and Riahts of Vernon
1.0 Submission of Meter Data through the ISO's Revenue Meter Data
Acquisition and Processing System ("MDAS"). Vernon agrees to make
available to the ISO through MDAS its Meter Data in accordance with the ISO
Tariff. The ISO's requirements regarding the frequency with which it requires
Meter Data to be made available to it through MDAS by Vernon are referred to in
the Metering Protocol of the ISO Tariff.
1.1 Meter Information. Vernon shall provide in the format prescribed by Schedule
15.1 the required information with respect to all of its meters used to provide
Meter Data to the ISO. Vernon must immediately notify the ISO of any changes
to the information provided to the ISO in accordance with this Section and
provide the ISO with any information in relation to such change as reasonably
requested by the ISO. Vernon shall have the right to modify Schedule 15.1,
although such modification shall not constitute an amendment to this Agreement.
1.2 Transformer and/or Line Loss Correction Factor. Vernon shall use the loss
correction factor referred to in the Laguna Bell-Vernon Interconnection Service
Agreement.
1.3 Rights to Access Metering Facilities. Vernon shall use its best efforts to
procure any rights necessary for the ISO to access all Metering Facilities of
Vernon to fulfill its obligations under the ISO Tariff, and its obligations under this
Agreement. If, after using its best efforts, Vernon is unable to provide the ISO
with such access rights, Vernon shall ensure that an ISO Authorized Inspector
undertakes, at the ISO's request, the certification, testing, inspection and/or
auditing of those Metering Facilities in accordance with the procedures
established pursuant to the Metering Protocol of the ISO Tariff, including the
requirement to complete and provide to the ISO all necessary documentation.
The ISO acknowledges that it will not be prevented from fulfilling its obligationgc
under the ISO Tariff or this Agreement by reason of the fact that it is provided
with escorted access to the Metering Facilities of Vernon.
1.4 Security and Validation Procedures. The security measures and the
validation, editing, and estimation procedures that the ISO shall apply to Meter
Data made available to the ISO by Vernon shall be as referred to in the Metering
Protocol of the ISO Tariff.
55
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ellY OF VERNON MSS AGREEMENT
1.5 Authorized Users. In addition to the persons referred to in the ISO Tariff,
including Vernon and the relevant Scheduling Coordinator, as being entitled to
access Meter Data on MDAS, Vernon may set forth in Schedule 15.2 of this
Agreement any additional aLthorized users that shall be entitled to access
Vernon's Settlement Quality Meter Data held by the ISO. Vernon shall include in
Schedule 15.2 as authorized users the relevant UDCs and TOs. The ISO shall
provide the authorized users with any password or 0 ther information necessary
to access Vernon's Settlement Quality Meter Data held by the ISO on MDAS.
Any amendment or addition to Schedule 15.2 shall not constitute an amendment
to this Agreement.
1.6 Certification, Inspection, and Auditing of Meters. Verno n shall be responsible
for all reasonable costs incurred by the ISO or an ISO Authorized Inspector in
connection with them carrying out the certification, inspection, testing or auditing
of the meters identified in Schedule 15.1 from which Vernon provides Meter Data
to the ISO. The ISO or ISO Authorized Inspector shall furnish Vernon, upon
request, an itemized bill for such costs.
Obliaations and Riahts of the ISO
2.0 Direct Polling of MDAS. The ISO shall allow the Scheduling Coordinator
representing Vernon and all authorized users to directly poll MDAS for the Meter
Data relating to Vernon in accordance with the procedures referred to in the
Metering Protocol of the ISO Tariff.
2.1 ISO as a Third-Party Beneficiary. The ISO shall be a third-party beneficiary to
any future agreement between Vernon and any other party relating to the
Metering Facilities of Vernon for the purpose of granting the ISO access to any
relevant information, records and facilities as needed by the ISO to fulfill its
obligations under the ISO Tariff and its obligations under this Agreement.
2.2 Remote and Local Access to Metering Data. The ISO shall provide Vernon
any password or other requirements necessary for Vernon to access its Meter
Data remotely or locally at the meter.
Calculation of Vernon Settlement Quality Meter Data
The calculation of Vernon's Settlement Quality Meter Data ("SQMD") shall be made in
accordance with a calculation procedure that is mutually agreed by the Parties, which
calculation procedure will generally be as follows:
Vernon SQMD = MSS Meter Data at the Points of Interconnection
+ Meter Data for Generation from Generating Units
within the MSS
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ellY OF VERNON MSS AGREEMENT
SCHEDULE 15.1
METER INFORMATION
[PRIVILEGED MATERIAL REDACTED PURSUANT TO
18 C.F.R. fi 388.112]
57
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ellY OF VERNON MSS AGREEMENT
SCHEDULE 15.2
ACCESS TO METER DATA
AND AUTHORIZED USERS
[Vernon shall provide in Schedule 15.2 a list of all authorized users of Vernon's
. Settlement Quality Meter Data and any restrictions or limitations placed on them.]
Southern California Edison (read only)
58
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SCHEDULE 16
[NOT USED]
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Vernon
Name of Primary
Representative:
SCHEDULE 17
NOTICES
[Section 19.1 and 3.4.3]
Donal O'Callaghan
Title:
Director of Light & Power
4305 Santa Fe Ave.
Address:
City/State/Zip Code:
Vernon, CA, 90041
Email Address:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Phone:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Fax No:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Name of Alternative
Representative:
Daniel E. Garcia
Title:
Power & Gas Procurement Manager
Address:
4305 Santa Fe Ave.
City/State/Zip Code:
Vernon, CA, 90058
Email Address:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Phone:
[Privileged Material Redacted Pursuant To 18 C~F.R. S 388.112]
Fax No:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Authorized Representative (fi 3.4.3):
Representative: Dennis M. P. Ehling, Esq.
Address:
10100 Santa Monica Blvd, 7th Floor
City/State/Zip Code:
Los Angeles, CA, 90067
Email Address:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Phone:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Fax No:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
60
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ISO
Name of Primary
Representative:
Michael Dozier
Title:
Lead, Contracts Negotiator
151 Blue Ravine Road
Address:
City/StatelZip Code:
Folsom, CA 95630
Email Address:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Phone:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Fax No:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Name of Alternative
Representative:
Philip D. Pettingill
Manager of Infrastructure Policy & Contract Negotiation
151 Blue Ravine Road
Title:
Address:
City/StatelZip Code:
Folsom, CA 95630
Email Address:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Phone:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Fax No:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Authorized Representative (Section 3.4.3):
Representative:
Jim Detmers
Title:
Vice President, Operations
Address:
151 Blue Ravine Road
City/State/Zip Code:
Folsom, CA 95630
Email Address:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Phone:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
Fax No:
[Privileged Material Redacted Pursuant To 18 C.F.R. S 388.112]
62
elTY OF VERNON MSS AGREEMENT
CALIFORNIA INDEPENDENT SYSTEM
OPE TOR
AND
CITY OF VERNON
METERED SUBSYSTEM AGREEMENT
elTY OF VERNON MSS AGREEMENT
METERED SUBSYSTEM AGREEMENT
THIS AGREEMENT is dated this / .sr day of J)ii't.EH.d~1l. , 20 oS' and is entered
into, by and between:
(1) The City of Vernon, a municipal corporation of the State of California, which
owns and operates a municipal electric utility system engaged in the Generation,
transmission, distribution, purchase and sale of electric power and Energy at
wholesale and retail, having its registered and principal place of business located
at 4305 Santa Fe Avenue, Vernon, California 90058 ("Vernon");
and
(2) California Independent System Operator Corporation, a California non-profit
public benefit corporation having its principal place of business located in such
place in the State of California as the ISO Governing Board may from time to
time designate, initially 151 Blue Ravine Road, Folsom California 95630 (the
"ISO").
Vernon and the ISO are hereinafter referred to individually as "Party" or collectively as
the "Parties."
Whereas:
A. The City of Vernon is a municipal electric utility engaged in, among other things,
generating, transmitting and distributing electric power and Energy in the Vernon
Service Area;
B. The ISO operates the ISO Control Area and is engaged in, among other things,
exel1cising Operational Control over certain electric transmission facilities forming
the ISO Controlled Grid, including transmission facilities and entitlements owned
or controlled by Southern California Edison Company (hereinafter referred to as
"SeE") and Vernon, scheduling transactions that utilize those transmission
facilities and Entitlements, and operating certain markets, including markets for
Imbalance Energy and Ancillary Services, pursuant to the terms of the ISO Tariff
and has certain statutory obligations under California law to maintain the
reliability of the ISO Controlled Grid, as well as certain NERC and Western
Electricity eoordinating Councilor its successor ('WEeC") mandated
responsibilities to ensure the reliable operation of the entire electric grid within
the ISO eontrol Area;
C. Vernon is a Local Publicly Owned Electric Utility under the Constitution of the
State of California and utilizes tax-exempt financing for one or more of its power
supply resources that restricts the amount of private use of such projects;
elTY OF VERNON MSS AGREEMENT
D. Vernon's System is within the ISO Control Area, is directly interconnected to the
SeE Distribution System, and is interconnected to the ISO Controlled Grid
through the Laguna Bell-Vernon Interconnection Service Agreement;
E. Vernon desires to continue to operate its generating resources, its transmission
and the distribution resources of Vernon's System in an integrated manner to
reliably serve Vernon's Loads and also desires, as or through a Scheduling
eoordinator, to schedule transactions using the ISO Controlled Grid and
participate in the ISO's markets as a buyer and a seller;
F. The Parties are entering into this Metered Subsystem Agreement ("Agreement")
in order to establish the terms and conditions on which (1) Vernon will operate
Vernon's Generating Units within the ISO Control Area; (2) Vernon will, as or
through its Scheduling Coordinator, schedule transactions within the ISO
Controlled Area and participate in the ISO's markets; and (3) the Parties will
meet their obligations under the ISO Tariff, as may be modified by this
Agreement, in connection therewith;
G. Vernon desires the option to utilize Vernon's resources to follow Vernon's Load
and exports from its MSS;
H. The intent of the Parties is that any ISO charges will be charged to Vernon's
Scheduling eoordinator based on the principle of cost causation, with due regard
for historic considerations, timing and transition issues, and other relevant
factors;
I. In order to maintain the reliability of the interconnected electric systems
encompassed by the WECC, the WECC RMS Agreement requires the ISO to
require all Generators in its Control Area, including Vernon, to comply with
certain WECC reliability criteria and to be subject to penalties imposed by the
WEeC Reliability Criteria Agreement should they fail to do so, which
requirements are set forth in Section 10.4; and
J. The Parties acknowledge that the ISO is responsible for the efficient use and
reliable operation of the ISO eontrolled Grid and the operation of the ISO's
eontrol Area consistent with achievement of planning and Operating Reserve
criteria no less stringent than those established by the WEeC and NERC and in
accordance with the ISO Tariff. The Parties acknowledge that the ISO may not
be able to satisfy fully these responsibilities if parties to agreements with the ISO,
including Vernon, fail to comply fully with all of their obligations under those
agreements. The Parties further acknowledge that Vernon may not be able to
satisfy fully its native Load responsibilities in the event the ISO fails to comply
fully with all of its obligations under this Agreement and the ISO Tariff.
2
elTY OF VERNON MSS AGREEMENT
NOW THEREFORE, in consideration of the mutual covenants set forth herein, THE
PARTIES AGREE as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
1.1 Master Definitions Supplement. Unless defined in the introduction or Section
1.2 of this Agreement, all terms used in this Agreement with initial capitalization
shall have the same meaning as those contained in the Master Definitions
Supplement to the ISO Tariff.
1.2 Special Definitions for this Agreement. In this Agreement, the following terms
shall have the meanings set opposite them:
"Point of Delivery" means any point at which Vernon's System interfaces with
the ISO Control Grid for transactions into ISO markets. The Point of Delivery is
described in Schedule 1.
"Point of Interconnection" means any point at which Vernon's System is
interconnected with the ISO eontrolled Grid in the ISO Control Area. The Point
of Interconnection is described in Section 4.1.
"Vernon's System" means all transmission facilities, distribution facilities and
Generating Units owned or controlled by Vernon on Vernon's side of the Points
of Interconnection for its MSS, as listed in Schedule 1. A description of the
generating facilities and Point of Interconnection facilities comprising Vernon's
System is set forth in Schedule 1.
"Under Frequency Load Shedding" or "UFLS" means automatic Load
Shedding, accomplished by the use of such devices as under frequency relays,
intended to arrest frequency decline and assure continued operation within
anticipated islands.
1.3 Rules of Interpretation. The following rules of interpretation and conventions
shall apply to this Agreement:
(a) the singular shall include the plural and vice versa;
(b) the masculine shall include the feminine and neutral and vice versa;
(c) "includes" or "including" shall mean "including without limitation";
3
elTY OF VERNON MSS AGREEMENT
(d) references to a Section, Article or Schedule shall mean a Section, Article
or a Schedule of this Agreement, as the case may be, unless the context
otherwise requires;
(e) any reference to the ISO Tariff or any provision of the ISO Tariff will mean
a reference to the ISO Tariff or provision then in effect as modified during
the term of this Agreement, unless otherwise specifically provided;
(f) unless the context otherwise requires, references to any law shall be
deemed references to such law as it may be amended, replaced or
restated from time to time;
(g) unless the context otherwise requires, any reference to a "person"
includes any individual, partnership, firm, company, corporation, joint
venture, trust, association, organization or other entity, in each case
whether or not having separate legal personality;
(h) unless the context otherwise requires, any reference to a Party includes a
reference to its permitted successors and assigns;
(i) any reference to a day, week, month or year is to a calendar day, week,
month or year; and
U) the captions and headings in this Agreement are inserted solely to
facilitate reference and shall have no bearing upon the interpretation of
any of the terms and conditions of this Agreement.
ARTICLE II
TERM AND TERMINATION
2.1 Effective Date. This Agreement shall be effective as of the date it is accepted
for filing and made effective by FERe, and shall remain in full force and effect
until terminated pursuant to Section 2.2 or upon such other date as the Parties
shall mutually agree.
2.2 Termination
2.2.1 Termination by Default. Either Party (the terminating Party) may terminate this
Agreement by giving written notice of termination in the event that the other Party
(the defaulting Party) commits any default under this Agreement or the applicable
provisions of the ISO Tariff which, if capable of being remedied, is not remedied
within 30 days after the terminating Party has given the defaulting Party written
notice of the default, unless excused by reason of Uncontrollable Forces under
Article XVIII of this Agreement.
4
elTY OF VERNON MSS AGREEMENT
2.2.2 Termination on Notice. Either Party shall have the right to terminate this
Agreement in accordance with this Section 2.2.2, subject to the procedural
requirements set forth in Section 2.2.3. Either Party may terminate this
Agreement by giving the other Party written notice at least six (6) months in
advance of the intended effective date of termination.
2.2.3 Filing. With respect to any notice of termination given pursuant to this Section
2.2, the ISO must file a timely notice of termination with FERC. The filing of the
notice of termination by the ISO will be considered timely if: (1) the request to file
a notice of termination is made after the preconditions for termination set forth in
Sections 2.2.1 or 2.2.2 have been met, and (2) the ISO files the notice of
termination within 30 days of receipt of such request from Vernon or issuance of
its own notice of termination. If the ISO fails to make a filing with the FERC of a
notice of termination requested by Vernon within 30 days of the Vernon request,
Vernon may bring a complaint at the FERC for a FERC determination. This
Agreement shall terminate upon the date on which the notice of termination is
permitted by FERC to become effective.
ARTICLE III
GENERAL TERMS AND CONDITIONS
3.1 Scope of Agreement. Except as specifically provided otherwise, the provisions
of this Agreement will apply only with respect to the facilities comprising Vernon's
System and to Loads and Generating Units that comprise or are directly
connected only to Vernon's System. Subject to the terms of Article II, this
Agreement shall not affect Vernon's ability to join or establish another eontrol
Area or Vernon's right to exercise any available legal recourse to obtain or
confirm that it possesses other forms of transmission rights.
3.2 [NOT USED]
3.3 Relationship Between Agreement and ISO Tariff
3.3.1 If and to the extent a matter is specifically addressed by a provision of this
Agreement (including any schedules or other attachments to this Agreement), the
provision of this Agreement shall govern notwithstanding any inconsistent
provision of the ISO Tariff.
3.3.2 If and to the extent this Agreement provides that a matter shall be determined in
accordance with the applicable provisions of the ISO Tariff, the applicable
provisions of the ISO Tariff shall govern.
3.3.3 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of any of the Generating Units listed in Schedule 14, comply with the
requirements applicable to Participating Generators under Article 5 of the ISO
5
elTY OF VERNON MSS AGREEMENT
Tariff and all other provisions of the ISO Tariff governing Participating
Generators. Nothing in this Agreement shall obligate Vernon to execute a
Participating Generator Agreement with respect to any Vernon Generating Units.
3.3.4 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of any Load listed in Schedule 14, comply with the requirements applicable to
Participating Loads under Article 5 of the ISO Tariff and all other provisions of the
ISO Tariff governing Participating Loads. Nothing in this Agreement shall
obligate Vernon to execute a Participating Load Agreement with respect to any
Vernon Load.
3.3.5 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of the distribution facilities of Vernon's System, comply with the requirements
applicable to Utility Distribution Companies under Article 4 of the ISO Tariff.
Nothing in this Agreement shall obligate Vernon to execute a UDe Operating
Agreement.
3.3.6 The applicability of any provision of the ISO Tariff to Vernon, including as
provided in Sections 3.3.1 through 3.3.5, inclusive, shall, in the event of a dispute
between the Parties, be determined through the ISO ADR Procedures in
accordance with Article 13 of the ISO Tariff.
3.3.7 So long as Vernon remains a Participating TO, Vernon shall comply with the
requirements applicable to Participating TOs under Article 3 of the ISO Tariff or
any settlement of FERC Docket No. ER 00-2019.
3.3.8 This Agreement shall serve, with respect to Vernon, as the written agreements
required by Sections 4.1.1, 5, 10.3.1,23.1.1, and 23.4 of the ISO Tariff and the
written agreement required for Participating Loads. Vernon's existing Utility
Distribution Company Operating Agreement shall terminate simultaneously upon
this Agreement becoming effective in accordance with Section 2.1 of this
Agreement, subject to FERC acceptance of the notice of termination of the Utility
Distribution Company Operating Agreement requesting that effective date, which
shall be filed with FERC by the ISO concurrently with the filing of this Agreement.
3.4 Amendment to Agreement
3.4.1 Vernon and the ISO shall retain all rights under Section 206' of the Federal Power
Act. Except with respect to the ISO's rights set forth in Section 3.4.2 of this
Agreement and the 'Parties' rights under Section 206 of the Federal Power Act,
this Agreement may be modified only by mutual written agreement between the
Parties. Amendments that require FERC approval shall not take effect until
FERe has accepted such amendments for filing and made them effective.
3.4.2 The ISO shall have the right to apply unilaterally under Section 205 of the
Federal Power Act to change the rates, terms, and conditions under this
Agreement for services provided to Vernon. In proposing any changes, unless in
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response to a FERe order as provided in Section 3.7, the ISO will consider the
principles in this Agreement as detailed in Section 3.5.2. Additionally, unless in
response to a FERC order as provided in Section 3.7, any changes proposed by
the ISO shall be subject to the following:
3.4.2.1 The ISO shall provide Vernon written notice of such ISO proposed change, no
fewer than 30 days in advance of the filing by the ISO for such proposed
change.
3.4.2.2 The ISO shall meet and confer with Vernon regarding the change, provided
that the scheduling of such meeting shall not be unreasonably delayed.
3.4.2.3 Vernon's representative designated in Schedule 17 may, at Vernon's sole
option, waive in writing these requirements upon written request by the ISO.
3.4.2.4 The ISO shall provide Vernon with a copy of the FERC filing if, and when,
made.
3.4.3 In addition to changes that may otherwise be contemplated by Section 3.6 or
Section 3.7, the Parties recognize that the ISO's responsibilities and operations,
as set forth in the ISO Tariff, and that Vernon's responsibilities and operations
may change during the term of this Agreement. The Parties agree that, in the
event any such change substantially affects the allocation of rights,
responsibilities and obligations between the Parties under this Agreement, the
Parties, while continuing to honor the terms and conditions of this Agreement, will
make good faith efforts to negotiate an appropriate amendment to this
Agreement and shall endeavor in that process to restore that allocation.
Schedules to this Agreement may be revised by agreement of the authorized
representatives of the Parties designated in Schedule 17. Revisions to
Schedules other than with regard to the contact information in Schedules 6 and
17 shall be filed by the ISO with FERe.
3.5 Amendment to ISO Tariff
3.5.1 Nothing in this Agreement shall affect in any way the authority of the ISO to
modify unilaterally the ISO Tariff in accordance with Section 19 of the ISO Tariff
or of the ISO and Vernon to exercise their rights under the Federal Power Act or
any other law, or to pursue any legal remedies.
3.5.2 In making amendments to the ISO Tariff as provided in Section 3.5.1, the ISO will
consider the impact on Metered Subsystems and the principles reached in this
Agreement, including but not limited to:
3.5.2.1 Cost Causation: The intent of the Parties is that ISO charges will be charged
to Vernon or Vernon's Scheduling Coordinator based on the principle of cost
causation, with due regard for historic considerations, timing and transition
issues, and other relevant factors.
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3.5.2.2 Load Following Capability: Vernon desires the option to elect to implement
Load following capability, through its Scheduling eoordinator, to follow
Vernon's Load and exports from its MSS with Vernon's resources and imports
into its MSS and to make economic resource decisions with the resources in
Vernon's portfolio.
3.5.2.3 Compatibility of Market Participants: For efficient use of transmission facilities
and to decrease Congestion, the ISO desires that all Market Participants
operate using similar rules and Scheduling timelines.
3.5.2.4 Private Use Restrictions: One or more of Vernon's power supply resources
has been financed with tax-exempt bonds, which bond indenture requires
limitations on operational control of such resource.
3.6 Market Redesign and Technology Upgrade. The ISO is in the process,
simultaneously with the negotiations of this Agreement, of redesigning the ISO
markets ("MRTU"). To the extent possible, and consistent with the principles of
Section 3.5.2, the components of MRTU that impact Metered Subsystems will be
incorporated in this Agreement. If components of the MRTU design are not
known until after the execution of this Agreement, the Parties agree to amend
this Agreement in accordance with Sections 3.4 and 3.5.2.
3.7 Changes to Conform To FERC Orders. Nothing in this Article III shall be
interpreted to limit the ISO's right to modify the ISO Tariff or this Agreement to
comply with or conform to any FERe order.
3.8 Facilities Financed by Local Furnishing Bonds or Other Tax-Exempt Bonds.
This Section 3.8 applies only to facilities which are under the Operational eontrol
of the ISO and are owned by a MSS Operator with Local Furnishing Bonds or
other tax-exempt bonds. Nothing in this Agreement shall compel (and the ISO is
not authorized to request) any MSS Operator with Local Furnishing Bonds, or
other tax-exempt bonds, to violate restrictions applicable to facilities which are
part of a system that was financed in whole or in part with Local Furnishing
Bonds or other tax-exempt bonds.
ARTICLE IV
INTERCONNECTION
4.1 Points of Interconnection. The Points of Interconnection are described in
Schedule 1. Additional Points of Interconnection may be established only by
mutual agreement of the Parties, which agreement shall not be unreasonably
withheld.
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4.2 Interconnection Operation Standards. The ISO and Vernon shall maintain
stable established operating parameters and control power and reactive flow
within standards stated in Schedule 2.
4.3 Operation, Maintenance, and Load Serving Responsibilities. Vernon shall
operate and maintain all facilities under Vernon control forming any part of
Vernon's System, and shall be responsible for the supply, including any
purchases, of the Energy and Ancillary Services required to reliably provide
electric service to the Loads connected to Vernon's System in accordance with
Applicable Reliability eriteria, including WECC and NERC criteria.
4.4 Expansion, Retirement, and Modification of Facilities. Vernon shall
coordinate with the ISO in the planning and implementation of any expansion,
retirement, or modification of those facilities forming parts of Vernon's System
that are identified in Schedule 1, replacements for such facilities, and other
facilities forming parts of Vernon's System that serve similar functions or that
otherwise will or may significantly affect the Points of Interconnection, and shall
provide sufficient advance notice to enable the ISO to conduct any necessary
studies. The Parties will amend Schedule 1, as necessary, should a new Point of
Interconnection be established in accordance with Section 4.1.
4.5 Installation of Facilities and Rights of Access
4.5.1 Pursuant to Schedule 3, the Parties shall permit one another, on reasonable
notice and with mutual agreement in each case, to install equipment or have
installed equipment or other facilities on the property of the other Party to enable
the installing Party to meet its service obligations, unless doing so would
negatively impact the reliability of service provided by the owning Party. Unless
otherwise agreed, all costs of installation shall be borne by the installing Party.
4.5.2 A Party installing equipment on the property of the other Party shall be granted,
free of charge, reasonable rights of access to inspect, repair, maintain and
upgrade that equipment. Access shall be provided only on prior notice and such
access shall not be unreasonably withheld.
4.5.3 Notwithstanding any other provision in this Section 4.5, Vernon shall provide the
ISO with access for inspection or audit, to any equipment or other facilities of
Vernon's System, the operation of which affects any Point of Interconnection or
the ISO Controlled Grid. Vernon will allow access during normal working hours
with no prior notice. For access during times outside of normal working hours,
the ISO shall provide Vernon with one (1) Business Day advance notice. A
shorter advance notice time may be attained subject to mutual agreement of the
Parties representatives.
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ARTICLE V
OPERATIONS
5.1 Outages
5.1.1 Vernon shall coordinate Outages of its Generating Units and of transmission
facilities, including the Points of Interconnection, constituting parts of Vernon's
System with the owners of the transmission or distribution facilities with which
Vernon's System is interconnected so that each of those owners can take those
Outages into account in coordinating maintenance of its transmission facilities
with the ISO.
5.1.2 Vernon shall schedule with the ISO on an annual basis, pursuant to Schedule 4,
any Maintenance Outages of the equipment included in Schedule 1, and shall
coordinate the Outage requirements of Vernon's System with the Participating
TO with which Vernon's System is interconnected.
5.1.3 Notwithstanding anything to the contrary in this Agreement, to the extent required
by any valid law, regulation or order issued by any state or federal authority
having jurisdiction over Vernon or Vernon's System, which law, regulation or
order applies to entities that have executed a written undertaking required by
Section 5 of the ISO Tariff, Vernon shall coordinate Outages of its Generating
Units, and of transmission facilities constituting parts of Vernon's System, with
the ISO, pursuant to any generally applicable program established by the ISO to
implement such law, regulation or order.
5.2 Safety and Reliability. Vernon shall operate and maintain Vernon's System in
accordance with applicable safety and reliability standards, WECC and NERC
requirements, regulatory requirements, operating guidelines, and Good Utility
Practice so as to avoid any material impact on the ISO Controlled Grid. Without
limiting the foregoing, Vernon shall operate and maintain Vernon's System,
during normal and System Emergency conditions, in compliance with the
requirements applicable to Utility Distribution eompanies in the ISO Operating
Procedures and standards. In the event any such ISO Operating Procedure or
standard is revised to modify the requirements applicable to Utility Distribution
eompanies, the Parties shall comply with such revision.
5.3 Critical Protective Systems. Vernon will coordinate with the ISO, SeE, and
any Generators on Vernon's System to ensure that ISO Controlled Grid eritical
Protective Systems, including relay systems and other systems described in
Schedule 5, are installed and maintained in order to function in a coordinated and
complementary fashion with protective devices installed by Vernon, SeE, and
Generators. Vernon shall notify the ISO as soon as is reasonably possible of any
condition that it becomes aware of that may compromise or affect the operating
safety and reliability of the ISO Controlled Grid eritical Protective Systems,
including the systems described in Schedule 5.
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5.4 Control Center. Vernon shall maintain and operate a control center that is
staffed twenty-four (24) hours per day, seven (7) days per week and shall,
together with the ISO, establish appropriate communications facilities and
procedures between Vernon's control center and the ISO Control eenter. The
initial points of contact are set forth in Schedule 6. A Party's representative must
update the information in Schedule 6 as the information changes. Changes to
Schedule 6 shall not constitute an amendment to this Agreement.
5.5 Transmission Losses, Outages, and Congestion. Vernon shall be
responsible for transmission losses within Vernon's System and to any Points of
Delivery. The ISO is not responsible for transmission line Outages and
transmission Congestion within Vernon's System and at the Points of
Interconnection. This Section 5.5 does not affect Congestion on the ISO
Controlled Grid, which shall be managed in accordance with the ISO Tariff.
ARTICLE VI
INFORMATION SHARING
6.1 Forecasts. Vernon shall provide to the ISO annually its ten-year forecasts of
Demand growth, internal Generation, and expansions of or replacements for
those transmission facilities that are part of Vernon's System identified in
Schedule 1 and other transmission facilities that are part of Vernon's System that
serve similar functions or that otherwise will or may significantly affect any Point
of Interconnection. Such forecast shall be provided on the date that Utility
Distribution Companies are required to provide similar forecasts, which is
currently October 15. The ISO shall notify Vernon of any changes in this date.
Peak Demand forecasts for Vernon's System shall be submitted weekly by
Vernon's Scheduling Coordinator and monthly in accordance with the ISO
Demand Forecasting Protocol, and biannually as part of the ISO's summer and
winter assessment process.
6.2 System Surveys and Inspections. Vernon and the ISO shall cooperate to
perform system surveys and inspections of facilities at or near the Points of
Interconnection that may significantly affect the facilities of the other Party.
6.3 Maintenance Schedules. Vernon shall provide the ISO on an annual basis with
a schedule of planned maintenance of those Generating Units identified in
Schedule 1, in accordance with Schedule 4. Vernon and the ISO shall also
maintain records of the Maintenance Outages scheduled by Vernon on such
facilities and their actual duration. Vernon shall coordinate maintenance of its
transmission facilities with the ISO in accordance with the Transmission eontrol
Agreement. Should Vernon withdraw any of its transmission facilities from ISO
Operational eontrol pursuant to the Transmission Control Agreement, it shall
coordinate maintenance of its transmission facilities within the ISO Control Area
with the ISO in accordance with this Agreement.
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6.4 Reliability Information. Vernon and the ISO shall each have the obligation to
inform the other Party, as promptly as possible, of any circumstance of which it
becomes aware (including, but not limited to, abnormal temperatures, storms,
floods, earthquakes, and equipment depletions and malfunctions and deviations
from Registered Data and operating characteristics) that is reasonably likely to
threaten the reliability of the ISO Controlled Grid or the integrity of Vemon's
System respectively. Vernon and the ISO each shall also inform the other Party
as promptly as possible of any incident of which it becomes aware (including, but
not limited to, equipment outages, over-loads or alarms) which, in the case of
Vernon, is reasonably likely to threaten the reliability of the ISO Controlled Grid,
or, in the case of the ISO, is reasonably likely to adversely affect Vernon's
I System. Such information shall be provided in a form and content which is
reasonable in all the circumstances, sufficient to provide timely warning to the
other Party of the threat and, in the case of the ISO, not unduly discriminatory
with respect to the ISO's provision of similar information to other entities.
6.5 Major Outage Reports. Vernon shall promptly provide such information as the
ISO may reasonably request concerning Vernon's operation of Vernon's System
to enable the ISO to meet its responsibility under the ISO Tariff to conduct
reviews and prepare reports following major Outages. Where appropriate, the
ISO will provide appropriate assurances that the confidentiality of commercially
sensitive information shall be protected. The ISO shall have no responsibility to
prepare reports on Outages that affect customers on Vernon's System, unless
the Outage also affects customers connected to the system of another entity
within the ISO Control Area. Vernon shall be solely responsible for the
preparation of any reports required by any governmental entity or the WECe with
respect to any Outage that affects solely customers on Vernon's System.
6.6 Annual Reviews and Reports
6.6.1 The ISO shall make available to Vernon any public annual reviews or reports
regarding performance standards, measurements or incentives relating to the
ISO Controlled Grid that the ISO makes available to MSS Operators and
Participating TOs.
6.6.2 Vernon shall make available to the ISO any public annual reviews or reports
regarding performance standards, measurements or incentives relating to
Vernon's System that may affect the ISO eontrol Area.
6.6.3 The ISO and Vernon shall jointly develop any necessary forms and procedures
for collection, study, treatment, and transmittal of system data, information,
reports and forecasts.
6.7 Vernon shall cause to be installed and cause to be maintained direct telemetry
links from facilities comprising Vernon's System including to the ISO's EMS
system to provide real-time data to the ISO, subject to any exemption available in
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accordance with the ISO Tariff. Such data points may include without limitation:
output of Generating Units under Vernon control; and Vernon's power flows at
the Vernon Points of Delivery; and bus voltages at each Generating Unit. With
regard to Generating Units in the ISO eontrol Area in which Vernon has an
entitlement over which Vernon does not have legal authority to exercise control,
Vernon shall, at a minimum, support the installation and maintenance of direct
telemetry links to the ISO's EMS system from those Generating Units before the
appropriate bodies of the projects pursuant to the individual project agreements
to the full extent allowed by such agreements and applicable laws and -
regulations. Additional data points to be transmitted to the ISO EMS system will
be as mutually agreed by the ISO and Vernon representatives.
ARTICLE VII
EMERGENCY OPERATIONS
7.1 In General.
Except with respect to Sections 7.4.1, 7.4.4, 7.4.5, 7.5.1, and 7.5.2, or unless
Vernon is short of resources to meet its forecasted Demand, as determined in
accordance with Section 4.5.3 of the ISO Tariff, the terms of this Article VII shall
only apply during a System Emergency that is not a result of a deficiency of
resources to serve Loads in the ISO Control Area but instead occurs due to
operating contingencies, which may include but not be limited to forced loss of
resources and/or transmission components or may otherwise be caused by an
Uncontrollable Force. In the event a System Emergency occurs or the ISO
determines that a System Emergency is threatened or imminent, Vernon shall, in
accordance with Good Utility Practice: (a) comply with all directions from the ISO
concerning the management and alleviation of a threatened or actual System
Emergency, which may include shutting down or starting a Generating Unit,
altering the scheduled delivery of Energy or Ancillary Services throughout the
ISO Control Area, or disconnecting Vernon Load; and (b) comply with all
procedures concerning System Emergencies set out in the Vernon EEP, ISO
Protocols, and ISO Operating Procedures, in accordance with the applicable
provisions of this Agreement. Without limiting the generality of the foregoing:
7.1.1 When requested by the ISO subsequent to the declaration by the ISO of an alert
regarding a threatened or imminent System Emergency in accordance with the
ISO's Operating Procedure applicable to System Emergencies, in the event
Vernon has chosen not to follow its Load in accordance with Section 8.6, and
otherwise during a System Emergency, Vernon shall operate all of its Generating
Units listed in Schedule 14 to supply the ISO with generating capacity and/or
Energy that can be made available by those Generating Units in order to make
available as much generating capacity and/or Energy as possible to the ISO
during the term of any System Emergency, consistent with: (a) maintaining the
supply of Energy to Loads on Vernon's System, other than in accordance with
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Section 7.4 of this Agreement; and (b) due consideration for Vernon obligations
specified in the EEP attached to Schedule 11 or limitations specified in Schedule
14 resulting from, but not necessarily limited to: (1) licenses/permits related to
Generating Units (including air emission constraints), (2) water release
constraints imposed by regulatory agencies, (3) internal policies related to fuel
and contract management, and (4) abnormal Generating Unit and transmission
maintenance, provided that Vernon shall provide the ISO with advance notice of
any changes to the limitations in Schedule 14 that Vernon's obligations impose
on the operation of its Generating Units, and any changes agreed to by1he ISO
shall be amendments to this Agreement. For that purpose, Vernon shall provide
the ISO with any change in Schedule 14 with regard to the limitations on the
operation of its Generating Units. Vernon shall provide the ISO updates
regarding the status of the limitations in Schedule 14 promptly whenever it
becomes aware of factors that affect such limitations, provided that updates shall
be provided at least quarterly and no updates may be provided later than the
deadline for the submission by other Generators of changes in limitations on the
operation of Generating Units, which is currently the deadline for the submission
of final Hour-Ahead Schedules, except when a change is due to a Forced
Outage. In making as much generating capacity and/or Energy available that
can be made available by its Generating Units to the ISO as possible for use
subsequent to the declaration by the ISO of an alert regarding a threatened or
imminent System Emergency in accordance with the ISO's Operating Procedure
applicable to System Emergencies and during System Emergency conditions,
subject to the foregoing, Vernon shall:
7.1.1.1 Schedule, reschedule and operate to the maximum extent possible, the
Generating Units listed in Schedule 14, up to the limitations set forth in
Section 2 of Schedule 14, and, to the extent possible, other Vernon resources
within and outside the ISO's Control Area to maximize the amount of
generating capacity and/or Energy available that can be made available by
those Generating Units and other resources to the ISO; and
7.1.1.2 Reschedule Maintenance Outages of equipment and facilities,including
Generating Units and facilities which impact the operation of Generating
Units, to maximize the amount of generating capacity and/or Energy available
that can be made available by those Generating Units to the ISO.
7.1.2 In the event that the ISO issues a Dispatch instruction that contravenes the
Vernon EEP attached to Schedule 11 or any limitation set forth in Schedule 14
duly communicated in accordance with Section 7.1.1, Vernon or its Scheduling
eoordinator shall not be required to follow that instruction, although it may
consent to do so in a particular case (without prejudice to Vernon's right to direct
its Scheduling eoordinator to decline any such instructions thereafter). If Vernon
or its Scheduling Coordinator chooses not to follow such an instruction, it shall
notify the ISO as soon as possible that it will not follow the Dispatch instruction
due to the previously communicated limitation.
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7.1.3 Vernon's Scheduling Coordinator shall receive compensation for generating
capacity and/or Energy supplied in response to System Emergency Dispatch
instructions issued by the ISO in accordance with the ISO Tariff.
7.1.4 During a System Emergency, the ISO and Vernon shall communicate through
their respective control centers and in accordance with procedures established in
this Agreement and the ISO Tariff.
7.1.5 Notwithstanding anything to the contrary in Articles V, VII, VIII, IX, or X of this
Agreement, or any ISO Tariff provision, Vernon shall not be expected or required
to curtail Load or offer to the ISO generating capacity or Energy from its
Generating Units in a System Emergency that is due to the failure of other Load
serving entities to provide resources adequate to serve Load and maintain
Operating Reserves or maintain an Approved eredit Rating in accordance with
the ISO Tariff.
7.1.5.1 Nothing in this Section 7.1.5 or this Agreement is intended to affect Vernon's
obligation to comply with any market mitigation requirement, including any
must-offer requirement, that the FERe may impose on MSS Operators.
7.2 Notice. When a System Emergency occurs, the ISO shall notify Vernon's
control center as part of the process by which it notifies all Utility Distribution
eompanies and MSS Operators of System Emergency conditions. Details of the
notification process are set forth in Schedule 7.
7.3 Records. Vernon and the ISO shall maintain all appropriate records with
respect to operations during a System Emergency in accordance with the ISO
Tariff.
7.4 Load Shedding
7.4.1 Automatic Load Shedding. Vernon shall implement and have at all times
operational an automatic Under Frequency Load Shedding program, or shall be
included in another MSS's or UDC's WEeC-compliant UFLS program, as
described in Schedule 8, and any undervoltage relay protection program that
may be described in Schedule 9.
7.4.2 Manual Load Shedding Priorities. Section 4.5.3 of the ISO Tariff provides that
the ISO will determine each UDe or MSS that has insufficient resources to meet
its forecasted Demand in accordance with the ISO forecast. If Load Shedding is
required solely due to insufficient resources to meet Load and/or inability to meet
Operating Reserve obligations (as defined by WEec or its successor and
implemented by the ISO), as determined in accordance with Section 4.5.3 of the
ISO Tariff, and only if Vernon is short of resources to meet its forecasted
Demand and exports, as determined in accordance with Section 4.5.3 of the ISO
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Tariff, will Vernon be required to shed Load, as directed by the ISO. Vernon
shall provide the ISO with detailed real time information, in graphical or tabular
format for those contracts and resources that do not have direct telemetry,
demonstrating its full resource sufficiency during any time that the ISO
interrupted firm Load within the ISO eontrol Area or during which time an ISO
direction to interrupt firm Load was in force, like other MSS Operators and UDCs
seeking similar exclusion from firm Load Shedding obligations, and Vernon and
its Scheduling eoordinator shall be subject to the provisions of Section 4.5.3 of
the ISO Tariff for any failure to make such demonstration.
7.4.3 Manual Load Shedding. When called upon to do so by the ISO in accordance
with Section 7.4.2 to avert, manage, or alleviate a System Emergency, Vernon
shall implement the manual Load Shedding program described in Schedule 10.
The ISO shall notify Vernon when conditions exist that would require Vernon to
implement the Load curtailment and Interruptible Load programs described in
Schedules 10, 10A, and 10B. Subject to the provisions of Sections 7.1.2 and
7.4.2, if the ISO determines that manual Load curtailment is required to manage
a System Emergency, the ISO shall determine the amount and location of Load
to be reduced and, to the extent practicable, shall allocate a portion of the
required Demand reduction to Vernon and each UDe and MSS Operator based
on the ratio of its Demand at the time of the ISO Control Area annual peak
Demand for the previous year to total ISO Control Area annual peak Demand for
the previous year, taking into account system considerations and Vernon's
curtailment rights.
7.4.4 Load Restoration. Load shed in accordance with Section 7.4.1, 7.4.2, and 7.4.3
of this Agreement shall be restored pursuant to Schedule 12.
7.4.5 The ISO shall use reasonable efforts to coordinate Vernon's Under Frequency
Load Shedding program with the Under Frequency Load Shedding programs of
other MSS Operators and Utility Distribution Companies, and the implementation
of all such other programs, so that no one entity bears a disproportionate share
of Under Frequency Load Shedding in the ISO eontrol Area. Vernon warrants
that its UFLS program does and will continue to fully adhere to the applicable
WEeC plans and requirements governing such programs, in accordance with
Schedule 8.
7.4.6 To the extent Vernon reduces Vernon's System Load in response to a System
Emergency, it shall exercise its best efforts to maintain the same level of
Generation and imports as was scheduled prior to the Load reduction in order to
provide the ISO with Energy, subject to the provisions of Section 7.1.2. Vernon's
Scheduling eoordinator shall receive compensation for any Energy or Ancillary
Services made available to the ISO as a result of such Load Shedding in
accordance with the ISO Tariff and ISO Operating Procedures and, in
accordance with Section 11.2.4.1.2(a) of the ISO Tariff, shall not be subject to
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any Uninstructed Deviation Penalty for positive Uninstructed Imbalance Energy
for so long as the System Emergency condition exists.
7.5 Electrical Emergency Plan
7.5.1 Vernon shall cooperate with the ISO's implementation ofthe Electrical
Emergency Plan ("ISO EEP") developed by the ISO in accordance with Section
2.3.2.4 of the ISO Tariff. Vernon shall implement Vernon's EEP attached to
Schedule 11 of this Agreement and filed with FERC for informational purposes,
and the ISO shall cooperate with Vernon's implementation of Vernon's EEP.
7.5.2 Vernon shall make an effort to notify its customers of any requests for voluntary
Load curtailments of which the ISO notifies Vernon pursuant to the ISO EEP.
7.5.3 When the ISO allocates an amount of Load curtailment to Vernon pursuant to
Section 7.4 of this Agreement and to the ISO EEP to manage a System
Emergency, Vernon shall cause customers to curtail that amount of Load except
to the extent such load is being served by an emergency generator pursuant to
the provisions of Schedule 11.
ARTICLE VIII
LOCAL AND REGIONAL RELIABILITY
8.1 Reliability Within Vernon's System
8.1.1 Vernon shall be solely responsible for maintaining the reliability of electric service
to customers in Vernon's System in accordance with Applicable Reliability
eriteria, regulatory requirements, and Good Utility Practice, subject to the
responsibilities of the ISO as the operator of the Control Area in which Vernon's
System is located.
8.1.2 Vernon shall be responsible for any reliability Generation, Voltage Support, and
Slack Start service requirements within Vernon's System. Except as may be
imposed in section 7.1.5.1 or Vernon voluntarily elects to be subject to must-offer
requirement, Vernon has no must-offer requirements.
8.2 Control Area Reliability. For the costs specified in this Article VIII, Vernon,
through its Scheduling Coordinator, shall be responsible for supplying or bearing
its proportionate share of the costs of generating resources required for the
reliability of electric service to Loads in the ISO eontrol Area, except for
Reliability Must-Run ("RMR") Generation costs on the ISO Controlled Grid,
where such costs are the responsibility of the Participating TO where the RMR
Unit is interconnected and Vernon is not the applicable Participating TO.
Vernon, through its Scheduling Coordinator, may meet such obligation from
resources it owns or with respect to which it has contractual entitlements to the
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CITY OF VERNON MSS AGREEMENT
Energy and Ancillary Services or it may purchase those products through the
ISO's markets in accordance with the terms of the ISO Tariff.
8.2.1 [INTENTIONALLY LEFT BLANK]
8.3 Voltage Support. Vernon shall maintain stable operating parameters and control
of real and reactive power flows in accordance with the Laguna Sell-Vernon
Interconnection Service Agreement between SeE and Vernon (or a replacement
agreement provided that any replacement agreement preserves Vernon's
obligations to maintain stable operating parameters and control of real and
reactive power flows in coordination with SCE in a manner that meets the
requirements of the ISO Tariff and the operation standards set forth in Schedule
2), which is incorporated herein by reference.
8.4 Black Start. Vernon shall either provide its own share of ISO Control Area Slack
Start capability or, through its Scheduling eoordinator, shall bear a portion of the
ISO's Slack Start costs in accordance with Section 13.7.
8.5 Ancillary Services. Vernon's responsibility for the ISO eontrol Area
requirements of Ancillary Services shall be determined in accordance with the
ISO Tariff. If Vernon's Scheduling eoordinator schedules sufficient self-provided
capacity complying with the applicable requirements of the ISO Tariff, which
capacity is committed to the various required Ancillary Services, and maintains
the Ancillary Service capacity as available to the ISO for that purpose, Vernon's
Scheduling Coordinator shall not be required to purchase capacity in the ISO's
Ancillary Service markets. To the extent Vernon's Scheduling Coordinator does
not schedule sufficient capacity for this purpose, Vernon may, through its
Scheduling Coordinator, purchase the required capacity in the ISO's Ancillary
Service markets. To the extent Vernon's Scheduling Coordinator does not
maintain the availability of capacity committed to the ISO for Ancillary Services
for that purpose, the Scheduling Coordinator shall be responsible for the
applicable charges under the ISO Tariff.
8.6 Imbalance Energy. To the extent that Energy for the purpose of serving Load in
Vernon's System and exports from Vernon's System, including losses, is not
reflected in Schedules submitted by Vernon's Scheduling Coordinator and
delivered in real time, Vernon's shall be deemed (through its Scheduling
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Coordinator) to have purchased or sold Imbalance Energy in the ISO's
Imbalance Energy market. The ISO will settle with Vernon's Scheduling
Coordinator with regard to Imbalance Energy in accordance with the ISO Tariff.
If Vernon elects in accordance with Section 23.12 of the ISO Tariff to have its
Scheduling Coordinator follow Vernon's Load and exports from the MSS with
Vernon's resources and imports into the MSS, to the extent that the net
Imbalance Energy for all of Vernon's Loads and exports from the MSS, and
resources and imports into the MSS, is within Vernon's portfolio deviation band,
as specified in Section 13.12, Vernon's Scheduling Coordinator will not be
subject to costs or penalties, other than the cost of the Imbalance Energy itself.
To the extent that Vernon's Scheduling Coordinator is operating outside of its
portfolio deviation band, Vernon's Scheduling Coordinator shall be subject to
penalties as specified in Section 13.12. In following Load, Vernon's Scheduling
Coordinator may utilize any resource available to it, regardless of whether, or at
what level, that resource is reflected in Schedules submitted by Vernon's
Scheduling Coordinator, except with respect to any portion of the capacity of a
resource for which Vemon's Scheduling Coordinator has submitted an Ancillary
Services capacity bid to the ISO for that resource or to the extent the ISO has
issued a System Emergency operating order consistent with Section 7.1.1.
ARTICLE IX
ACCESS TO THE ISO CONTROLLED GRID AND MARKETS
9.1 Access to the ISO Controlled Grid
9.1.1 Vernon shall have open and non-discriminatory access to the ISO Controlled
Grid for the scheduling of transactions that do not utilize Existing Contracts and
Encumbrances in accordance with the ISO Tariff and for other transmission
services the ISO may provide in the future under the ISO Tariff, or under any
other appropriate regulatory avenue.
9.1.2 Vernon may use the ISO eontrolled Grid in accordance with the ISO Tariff to buy
and sell electric products in the ISO's markets and in bilateral transactions with
other Market Participants.
9.2 Access to ISO Markets
9.2.1 Sales of Energy and Ancillary Services. Energy and Ancillary Services
produced by Vernon's Generating Units and Loads listed in Schedule 14 may be
sold in the ISO's markets on the terms applicable under the ISO Tariff to
Participating Generators and Participating Loads, respectively, as modified by
this Agreement. If Vernon's Scheduling Coordinator submits a bid for Energy or
Ancillary Services from a Generating Unit or Load listed in Schedule 14, Vernon
warrants to the ISO that it has the capability to provide that service in accordance
with the ISO Tariff and that it shall comply with ISO Dispatch Instructions for the
provision of the service in accordance with this Agreement. If Vernon's
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CITY OF VERNON MSS AGREEMENT
Scheduling Coordinator submits a bid for Energy or Ancillary Services from a
Generating Unit or Load within Vernon's System, any Energy produced from that
Generating Unit or reduced from Load shall be accordingly added or subtracted
to the calculation of Vernon's net metered Demand and exports from Vernon's
System for purposes of determining deliveries to Vernon's System in assessing
charges pursuant to Article XIII and consistent with Schedule 15.
9.2.2 Certification. Vernon shall not use a Scheduling Coordinator to submit a bid for
the provision of an Ancillary Service or submit a Schedule for the self-provision of
an Ancillary Service unless the Scheduling Coordinator serving Vernon is in
possession of a current certificate pursuant to Sections 2.5.6 and 2.5.24 of the
ISO Tariff.
9.2.3 Supplemental Energy and Ancillary Service Bids. Bids in the ISO's
Supplemental Energy and Ancillary Service markets may only be submitted by
Vernon's Scheduling Coordinator.
9.2.4 Black Start and Voltage Support. Vernon or its Scheduling Coordinator shall
be entitled to bid its Generating Units and the resources on Vernon's System in
any open solicitation held by the ISO for Black Start or Voltage Support services,
provided that the supply of any service by Vernon shall not impair its ability to
provide the service it is required by Article VIII of this Agreement to provide for
Vernon's System, and, if the services are sold to the ISO, Vernon or its
Scheduling Coordinator shall provide such services in accordance with the ISO
Tariff.
ARTICLE X
GENERATING UNITS AND MARKET-PARTICIPATING LOADS
10.1 Identification of Resources. Vernon has identified in Schedule 14 the
individual Generating Units and Loads proposed for participation in the ISO's
markets that it owns, operates or to which it has a contractual entitlement that are
included in Vernon's System.
10.1.1 Technical Characteristics. Vernon has provided to the ISO in Schedule 14 the
required information regarding the capacity and operating characteristics of each
of the Generating Units and Loads listed in that schedule. The ISO may verify,
inspect, and test the capacity and operating characteristics provided in Schedule
14, and any changes thereto made pursuant to Section 10.1.2 of this Agreement,
in accordance with Section 2.5.25 of the ISO Tariff.
10.1.2 Notification of Changes. Vernon shall notify the ISO sixty (60) days prior to any
change to the information provided in Schedule 14, provided that such notice
shall not be required for changes to parameters of operating limitations set forth
in Schedule 14, which shall be made in accordance with the ISO's Operating
Procedures. The Parties shall amend Schedule 14, as applicable, to reflect that
20
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change. Subject to such notification, and verification, inspection, and testing in
accordance with Section 10.1.1, but without waiting for the execution and
effectiveness of an amended Schedule 14, the Parties shall implement any new
information for a Generating Unit or Load identified in Schedule 14 upon the
effective date for the next scheduled update to the ISO's Master File.
10.1.3 Nothing in this section shall preclude Vernon from informing the ISO of changes
in limitations on the operation of a Generating Unit, as provided in Section 7.1 of
this Agreement, or to comply with environmental laws and regulations, provided
that Vernon provides the ISO with advance notice of any changes in such
limitations.
10.2 Generating Unit Operation
10.2.1 Vernon shall install and maintain direct telemetry links to the ISO's EMS system
for each Vernon Generating Unit under Vernon control that enables the ISO to
view the status, voltage, and output of the Generating Unit and ISO certified
meters that transmits data automatically to the ISO's meter data acquisition
system. Vernon shall calculate and specify to the ISO any distribution loss factor
applicable to its Generating Units.
10.2.2 If Vernon, through its Scheduling eoordinator, chooses to supply Regulation or
self-provide Regulation from a Generating Unit, it must provide the ISO with
control over the Generating Unit providing Regulation and place the Generating
Unit on Automatic Generation eontrol ("AGC") responsive to the ISO's
Regulation signal. Regulation service shall be provided in accordance with the
ISO Tariff. Vernon or its Scheduling Coordinator may adjust output of Vernon's
Generating Units, in response to Vernon's Load following needs, if elected in
accordance with Section 23.12 of the ISO Tariff, provided that, if Vernon is
providing Regulation to the ISO from any Generating Unit, it may not adjust the
output of that Generating Unit unless the integrity of the ISO's Regulation signal,
and the continuous responsiveness of such Generating Unit, via AGC, to the
ISO's Regulation signal, is not compromised. If the ISO determines that the
integrity of the ISO's Regulation signal or the continuous responsiveness to the
ISO's Regulation signal is compromised, Vernon's Generating Unit shall be
deemed not to have provided the Regulation, and Vernon shall be subject to the
provisions of the ISO Tariff applicable to failure to provide Regulation. To the
extent that Vernon chooses not to provide Regulation from a Vernon Generating
Unit, the ISO shall not control the Generating Unit via a direct link between the
ISO and the Generating Unit without Vernon's consent.
10.3 ISO Authority to Dispatch Vernon Resources. The ISO's authority to Dispatch
any portion of the capacity of any Generating Unit of Vernon, other than in
accordance with a bid submitted to the ISO by Vernon's Scheduling eoordinator,
is set forth in and subject to Section 7.1 of this Agreement.
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10.4 WECC Requirements Applicable to Participating Generators
10.4.1 Reliability Criteria. Vernon shall comply with the requirements of Section 5.4 of
the ISO Tariff applicable to Participating Generators.
10.4.2 Payment of WECC Sanctions. Vernon shall be responsible for payment directly
to the WECC of any monetary sanction assessed against Vernon by the WEee,
as provided in Section 5.4.3 of the ISO Tariff.
ARTICLE XI
SCHEDULING
11.1 Scheduling Coordinator. All Schedules submitted on behalf of Vemon for the
delivery of Energy and Ancillary Services to Loads in Vernon's System and for
exports from Vernon's System shall be submitted by a Scheduling Coordinator
certified in accordance with the applicable provisions of the ISO Tariff that has
entered into a Scheduling eoordinator Agreement with the ISO that is currently in
effect. The Scheduling eoordinator may be Vernon itself or a Scheduling
Coordinator designated by Vernon.
11.2 Self-Provided Energy and Ancillary Services. Vernon may self-provide all or
any portion of its obligation for Energy and Ancillary Services. Whether or not
Vernon engages in such self-provision, Vernon's Scheduling Coordinator shall
include the gross output, less auxiliary load, of each Generating Unit and import
from which Vernon meets that obligation and the gross Load served on Vernon's
System and gross exports from Vernon's System in Schedules submitted to the
ISO. If the ISO amends the ISO Tariff to relieve Scheduling Coordinators of the
obligation to schedule gross Generation, imports, Loads, and exports, and the
amendment would have applied to Vernon in the absence of this Agreement, the
Parties shall negotiate an amendment to this Agreement to conform the
obligations of this section to the modified procedures.
11.3 Scheduling Timelines. Vernon's Scheduling Coordinator shall submit all
Schedules, including Schedules for the use of its Existing Contracts and
Encumbrances, Schedules for the use of the ISO Controlled Grid as a new firm
use, and Schedules for the self-provision of Energy and Ancillary Services, within
the timelines established by the ISO Tariff.
11.4 Load Following Resources. Schedule 14A identifies each power resource
authorized for use by Vernon's Scheduling Coordinator in following Vernon's
load.
11.4.1 The ISO may file with the FERe to remove a resource from Schedule
14A if the ISO determines that a resource identified in Schedule 14A
adversely affects the reliable operation of the ISO eontrol Area. The ISO
shall provide notice to Vernon at least 60 days in advance of such a
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filing. Such notice to Vernon shall be accompanied by an ISO
explanation of the grounds on which the ISO asserts that the resource
adversely affects the reliable operation of the ISO Control Area.
11.4.2 Vernon may add additional resources to Schedule 14A through the
following procedures. Vernon shall provide notice to the ISO 60 days in
advance of the proposed date of an ISO filing at FERC to implement the
addition of a resource to Schedule 14A. Within 60 days of such notice,
the ISO must file at the FERC to add the resource to Schedule 14A
unless, within that 60 day period, the ISO determines and notifies Vernon
that such resource would adversely affect reliable operation of the ISO
Control Area. Notice of such determination shall be accompanied by an
ISO explanation of the grounds on which the ISO asserts that such
resource would adversely affect the reliable operation of the ISO eontrol
Area. If Vernon disagrees with an ISO determination that a resource
Vernon proposes to add to Schedule 14A, would adversely affect reliable
operation of the ISO Control Area, Vernon may bring a complaint at the
FERC for a FERe determination of whether the resource would adversely
affect reliable operation of the ISO Control Area, and thus whether the
resource is to be added to Schedule 14A.
11.4.3 In no case shall resources located within Vernon's System be removed by
the ISO from Schedule 14A or be rejected by the ISO for addition to
Schedule 14A.
ARTICLE XII
METERING
12.1 Vernon shall ensure installation of ISO-certified revenue quality meters and
associated equipment at or near (a) the Points of Delivery and, (b) at each bus to
which one or more Generating Units is connected and the associated Generating
Units auxiliary load.
12.2 The provisions of the ISO Tariff applicable to ISO Metered Entities shall apply to
Vernon, subject to the particular rights and obligations of the Parties with respect
to metering set forth in Schedule 15, including access to and testing of Vernon's
meters.
12.3 The calculation of Vernon's Settlement Quality Meter Data shall be in accordance
with Schedule 15.
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ARTICLE XIII
CHARGES
13.1 Charges Generally. Except as may be provided otherwise in the provisions of
this Article XIII, Vernon's Scheduling Coordinator shall be responsible for
charges incurred in accordance with the ISO Tariff, provided that nothing in this
Agreement shall prohibit Vernon from challenging the allocation of any new
charge under the ISO Tariff to Vernon on the ground that the proposed charge is
not appropriately assessed against a MSS Operator, or on any other ground.
Further, except as specifically provided in this Agreement, Vernon shall only be
responsible for charges allocated by the ISO Tariff to Participating TOs if 1t is a
Participating TO, as provided in Section 3.3.7.
13.2 Transmission Losses. Vernon's Scheduling eoordinator shall be responsible
for transmission losses, in accordance with the ISO Tariff, only for the delivery of
Energy to Vernon's System or from Vernon's System, provided Vernon fulfills its
obligation to provide for transmission losses on the transmission facilities forming
part of Vernon's System in accordance with Section 5.5 of this Agreement. A
Generation Meter Multiplier ("GMM") shall be assigned to Vernon's Generating
Units for use of the ISO Controlled Grid. That GMM shall be 1.0 for all
Generating Units within Vernon's System that are located at or behind a Point of
Interconnection, to the extent that the Load at the Point of Interconnection for that
portion of Vernon's System exceeds the amount of Generation produced by the
Generating Units connected to that portion of Vernon's System.
13.3 Congestion Costs. Vernon's Scheduling Coordinator shall be responsible for
Usage Charges and Grid Operations Charges, and any successor charges
through which the ISO collects Congestion costs from Scheduling Coordinators,
in accordance with the ISO Tariff only with respect to Vernon's Scheduling
Coordinator's delivery of Energy and Ancillary Services to Vernon's System or
from Vernon's System, including Vernon's Scheduling Coordinator's delivery of
Energy and Ancillary Services from Vernon's Generating Units to Vernon's
System Loads other than Loads within the same Service Area to which the
Generating Units are connected, provided that the ISO is not responsible to
manage Congestion on Vernon's System and at the Points of Interconnection in
accordance with Section 5.5 of this Agreement.
13.4 Unaccounted-For Energy Costs. Vernon's Service Area shall be treated as a
Utility Distribution Company Service Area for purposes of allocating responsibility
for Unaccounted-for Energy costs in accordance with the ISO Tariff.
13.5 Reliability Generation. Vernon shall be responsible for the costs of maintaining
the reliability of facilities in Vernon's System, including costs of Generating Units
operated by or on behalf of Vernon for that purpose. If and to the extent Vernon
does not maintain sufficient Generation, then Vernon may be assessed costs
incurred by the ISO to support the reliability of Vernon's System.
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13.6 Voltage Support Costs. If and to the extent Vernon does not satisfy the Voltage
Support obligations set forth in accordance with Section 8.3 of this Agreement,
Vernon's Scheduling Coordinator shall bear a proportionate share of the ISO's
Voltage Support cost in accordance with the ISO Tariff.
13.7 Black Start Costs. If and to the extent Vernon does not provide its own Black
Start capability in accordance with Section 8.4 of this Agreement, Vernon's
Scheduling Coordinator shall bear a proportionate share of the ISO's Black Start
cost in accordance with the ISO Tariff.
13.8 Neutrality Costs. Vernon's Scheduling Coordinator's obligation to pay neutrality
adjustments and Existing Contracts cash neutrality charges (or collect refunds)
shall be based on Vernon's net metered Demand and exports from the ISO
Control Area.
13.9 Peak Reliability Costs. Vernon, through its Scheduling Coordinator, shall have
the option to avoid any share of the ISO's costs for any peak Demand reduction
program or for any peak reliability Generation procurement program pursuant to
ISO Tariff Section 2.3.5.1.8. In order to avoid such costs, Vernon shall secure
capacity reserves on an annual basis at least equal to fifteen percent (15%) of its
annual peak Demand responsibility, and shall provide documentation to the ISO
of the resources proposed to meet that peak Demand responsibility plus such
capacity reserves. Such capacity reserves may include peaking capacity and
Demand reduction programs. To the extent that Vernon demonstrates its
provision of capacity reserves, Vernon's Scheduling Coordinator shall not be
obligated to bear any share of the ISO's costs for any peak Demand reduction
program or for any peak reliability Generation procurement program pursuant to
ISO Tariff Section 2.3.5.1.8.
13.10 Generating Unit Minimum Load, Emissions, and Start-Up Costs. If the ISO
is compensating Generating Units for Minimum Load Costs, Emissions Costs,
and Start-Up Costs, and if Vernon has elected to follow its Load in accordance
with Section 8.6, then Vernon shall elect either the option set forth in Section
13.10.1 or the option set forth in Section 13.10.2. If Vernon has not elected to
follow its Load in accordance with Section 8.6, then Vernon may not elect the
option set forth in Section 13.10.2, and shall elect either the option set forth in
Section 13.10.1 or the option set forth in Section 13.10.3.
13.10.1 Vernon may elect to be eligible for recovery of Minimum Load Costs and
charge the ISO for the Emissions Costs and Start-Up Costs of the Generating
Units serving the Load of Vernon's System whether following its Load or not. If
Vernon makes such election, then Vernon's Scheduling Coordinator shall bear its
proportionate share of the total amount of those costs incurred by the ISO in
accordance with ISO Tariff Sections: 2.5.23.3.6.1,2.5.23.3.7.1, and 5.11.6.1.4.
13.10.2 If Vernon has elected to follow its Load in accordance with Section 8.6,
Vernon may elect not to be eligible for recovery of Minimum Load Costs and
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choose not to charge the ISO for the Emissions Costs and Start-Up eosts of the
Generating Units serving the Load of Vernon's System. If Vernon makes such
election, then Vernon's Scheduling eoordinator shall bear its proportionate share
of the total amount of those costs incurred by the ISO based on Vernon's Net
Negative Uninstructed Deviations.
13.10.3 If Vernon has elected not to follow its Load in accordance with Section
8.6, Vernon may elect not to be eligible for recovery of Minimum Load Costs and
choose not to charge the ISO for the Emissions Costs and Start-Up eosts of the
Generating Units serving the Load of Vernon's System. If Vernon makes such
an election, then Vernon's Scheduling Coordinator shall be allocated Emissions
Costs and Start-Up Costs in accordance with ISO Tariff Section 23.16.3 and shall
be allocated Minimum Load Costs in accordance with ISO Tariff Section
5.11.6.1.4, except that the allocation of Minimum Load Costs pursuant to ISO
Tariff Section 5.11.6.1.4(2) and 5.11.6.1.4(3)(a) shall be based on Vernon's net
metered Demand and exports.
13.10.4 Vernon shall make the election whether to be eligible for Minimum Load
Cost recovery and charge the ISO for the subject Generating Unit Emissions
Costs and Start-Up Costs annually by November 1 for the following calendar
year.
13.11 Grid Management Charge Adjustment for MSS Load Following. If the ISO is
charging Grid Management Charges for uninstructed deviations (currently the
Energy Transmission Services Uninstructed Deviations Charge and a portion of
the Market Usage Charge), and if Vernon's Scheduling Coordinator has
uninstructed deviations associated with Load following from resources listed in
Schedule 14A, then the ISO will net the Generation and imports into the MSS to
match the Load and exports out of the MSS, and will not assess Grid
Management Charges associated with uninstructed deviations for such portion of
Energy that is used to match MSS Load and net exports out of the MSS. If
Generation and imports into the MSS are above the amount to cover Load and
exports out of the MSS and were sold into the ISO's Imbalance Energy market,
then Vernon's Scheduling Coordinator will only be charged Grid Management
Charges associated with uninstructed deviations for this quantity. If Generation
and imports into the MSS are below the amount to cover Load and exports out of
the MSS, and Imbalance Energy is purchased from the ISO, then Vernon's
Scheduling Coordinator will only be charged Grid Management Charges
associated with uninstructed deviations for this quantity. Vernon's Scheduling
Coordinator will otherwise be assessed all components of the Grid Management
eharge in accordance with the ISO Tariff.
13.12 Deviation Band and Penalties Calculation. Subject to an election by Vernon
made in accordance with Section 23.12 of the ISO Tariff to have its Scheduling
Coordinator follow Load, the ISO will settle with Vernon's Scheduling Coordinator
with regard to Imbalance Energy, based on the applicable zonal or locational ex
post prices, in accordance with the ISO Tariff. For purposes of assessing
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penalties to Vernon's Scheduling Coordinator associated with operating outside
the portfolio deviation band described in Section 8.6, the portfolio deviation band
shall be three percent (3%) of the lesser of Vernon's metered or Hour-Ahead
scheduled Demand and exports from the MSS, adjusted for Forced Outages and
any ISO directed firm Load Shedding, for Vernon's portfolio as a whole.
Penalties for operating outside of the deviation band will be based on a price that
is the effective weighted average ex post price applicable to Vernon for the billing
interval. If the metered Generation resources and imports into the MSS exceed
the Demand, exports from the MSS, and Energy expected to be delivered by
Vernon in response to the ISO's Dispatch instructions and/or Regulation set-point
signals issued by the ISO's AGe by more than the deviation band, then the ISO
will take back its payment for Imbalance Energy by assessing Vernon's
Scheduling Coordinator a penalty of one hundred percent (100%) of the amount
of Imbalance Energy that is outside the deviation band. If metered Generation
resources and imports into the MSS are deficient in meeting Demand, exports
from the MSS, and Energy expected to be delivered by Vernon in response to
the ISO's Dispatch instructions and/or Regulation set-point signals issued by the
ISO's AGe by more than the deviation band, then Vernon's Scheduling
Coordinator shall be assessed a two hundred percent (200%) penalty for the
amount of Imbalance Energy that is outside of the deviation band, in addition to
the Imbalance Energy charges that may be applicable. Vernon shall not oppose
the ISO's allocation of the proceeds of any deviation band penalties as an offset
to the ISO's Grid Management Charge.
13.13 Penalties for Failure to Provide Ancillary Services Capacity. The Parties
agree that Ancillary Services should be provided from the resources that the ISO
actually instructs to respond and that the resources instructed to deliver Ancillary
Services are expected to provide an incremental response consistent with the
standards for the Ancillary Service. However, since Vernon's Scheduling
Coordinator may simultaneously be undertaking economic trades or following
Loads using the same resource that the ISO has instructed to deliver Ancillary
Services, the ISO will incorporate Vernon's documented Load following
instructions into its evaluation of Ancillary Services compliance. Penalties for
failure to provide committed Ancillary Services capacity will be assessed by the
ISO in accordance with the ISO Tariff, on an individual Generating Unit basis,
whenever that capacity is considered to have not been made available to the
ISO. If the ISO believes that a Vernon Generating Unit did not supply the
committed amount of Ancillary Services capacity or associated Energy, based on
the Ancillary Services capacity reservation, any instructions issued by the ISO to
Vernon or its Scheduling Coordinator to provide associated Energy, and the
supporting meter data, when assessing penalties the ISO will give due
consideration to operational data that Vernon or its Scheduling Coordinator may
provide to demonstrate that the Generating Unit's output was being adjusted for
Load-following purposes as allowed by the terms of this Agreement and within
the Ancillary Services capacity not provided to the ISO. Additionally, the Parties
agree that the current equations for the settlement of real time Energy may under
27
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some circumstances result in Ancillary Services capacity penalties that are
inappropriate when the Generating Unit is being used simultaneously to follow
Load and provide Ancillary Services Energy.
13.14 Operating and Maintenance Costs. Vernon shall be responsible for all its costs
incurred in connection with procuring, installing, operating, and maintaining
Vernon's facilities, including the Generating Units and Loads listed in Schedule
14, for the purpose of maintaining Vernon's System.
13.15 Billing and Payment. Billing and payment will be in accordance with the ISO
Tariff.
ARTICLE XIV
PENALTIES AND SANCTIONS
14.1 Penalties. Vernon or its Scheduling Coordinator shall be subject to penalties
and/or sanctions for failure to comply with any provisions of this Agreement only
to the extent that (a) the penalty or sanction is set forth in the ISO Tariff and has
been approved by FERe; and (b) the ISO Tariff provides for the imposition of the
same penalty or sanction on a UDC, MSS Operator, or Participating Generator,
or Participating Load in the same circumstances. Nothing in this Agreement, with
the exception of the provisions of Article XV, shall be construed as waiving the
rights of Vernon to oppose or protest any penalty or sanction proposed by the
ISO to the FERC or the specific imposition by the ISO of any FERe-approved
penalty or sanction on Vernon.
14.2 Corrective Measures. If Vernon fails to meet or maintain the requirements set
forth in this Agreement or in the applicable provisions of the ISO Tariff, the ISO
shall be permitted to take any of the measures, contained or referenced herein or
in the applicable provisions of the ISO Tariff that the ISO deems to be necessary
to correct the situation.
ARTICLE XV
DISPUTE RESOLUTION
15.1 Dispute Resolution. The Parties shall make reasonable efforts to settle all
disputes arising out of or in connection with this Agreement. In the event any
dispute is not settled, the Parties shall adhere to the ISO ADR Procedures set
forth in Section 13 of the ISO Tariff, which is incorporated by reference, except
that any reference in Section 13 of the ISO Tariff to Market Participants shall be
read as a reference to Vernon and references to the ISO Tariff shall be read as
references to this Agreement.
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ARTICLE XVI
REPRESENTATIONS AND WARRANTIES
16.1 Representations and Warranties. Each Party represents and warrants that the
execution, delivery and performance of this Agreement by it has been duly
authorized by all necessary corporate and/or governmental actions, to the extent
authorized by law.
16.2 Necessary Approvals. Each Party represents that all necessary leases,
approvals, licenses, permits, easements, rights of way or access to install, own
and/or operate its facilities subject to this Agreement have been or will be
obtained prior to the effective date of this Agreement.
ARTICLE XVII
LIABILITY AND INDEMNIFICATION
17.1 Liability and Indemnification. The provisions of Section 14 of the ISO Tariff will
apply to liability and indemnification arising under this Agreement, except that all
references in Section 14 of the ISO Tariff to Market Participants shall be read as
references to Vernon and references to the ISO Tariff shall be read as references
to this Agreement.
ARTICLE XVIII
UNCONTROLLABLE FORCES
18.1 Section 15 of the ISO Tariff shall be incorporated by reference into this
Agreement, except that all references in Section 15 of the ISO Tariff to Market
Participants shall be read as a reference to Vernon and references to the ISO
Tariff shall be read as references to this Agreement.
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ARTICLE XIX
MISCELLANEOUS
19.1 Notices. Any notice, demand or request which may be given to or made upon
either Party regarding this Agreement shall be made in writing to the employee or
official identified in Schedule 17 of this Agreement, and shall be deemed properly
given: (a) upon delivery, if delivered in person, (b) five (5) days after deposit in
the mail if sent by first class United States mail, postage prepaid, (c) upon receipt
of confirmation by return facsimile if sent by facsimile, or (d) upon delivery if
delivered by prepaid commercial courier service. A Party must update the
information in Schedule 17 as the information changes. Such changes shall not
constitute an amendment to this Agreement.
19.2 Waivers. Any waiver at any time by either Party of its rights with respect to any
default under this Agreement, or with respect to any other matter arising in
connection with this Agreement, shall not constitute or be deemed a waiver with
respect to any subsequent default or other matter arising in connection with this
Agreement. Any delay, short of the statutory period of limitations, in asserting or
enforcing any right under this Agreement shall not constitute or be deemed a
waiver of such right.
19.3 Governing Law and Forum. This Agreement shall be deemed to be a contract
made under, and for all purposes shall be govemed by and construed in
accordance with, the laws of the State of ealifomia, except its conflict of laws
provisions. The Parties agree that any legal action or proceeding arising under
or relating to this Agreement to which the ISO ADR Procedures do not apply
shall be brought in one of the following forums as appropriate: any court of the
State of California, any federal court of the United States of America located in
the State of California, or, where subject to its jurisdiction, before the Federal
Energy Regulatory Commission.
19.4 Merger. This Agreement constitutes the complete and final agreement of the
Parties with respect to the subject matter hereof and supersedes all prior
agreements, whether written or oral, with respect to the provisions of this
Agreement.
19.5 Counterparts. This Agreement may be executed in one or more counterparts at
different times, each of which shall be regarded as an original and all of which,
taken together, shall constitute one and the same Agreement.
19.6 Consistency with Federal Laws and Regulations. Nothing in this Agreement
shall compel either Party to violate federal statutes or regulations, or orders
lawfully promulgated thereunder. If any provision of this Agreement is
inconsistent with any obligation imposed on a Party by such federal statute,
regulation or order, to that extent, it shall be inapplicable to that Party. No Party
shall incur any liability by failing to comply with a provision of this Agreement that
is inapplicable to it by reason of being inconsistent with any such federal statutes,
30
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regulations, or orders lawfully promulgated thereunder; provided, however, that
such Party shall use its best efforts to comply with this Agreement, to the extent
that applicable federal laws, regulations, and orders lawfully promulgated
thereunder permit it to do so.
19.7 Severability. If any term, covenant, or condition of this Agreement or the
application or effect of any such term, covenant, or condition is held invalid as to
any person, entity, or circumstance, or is determined to be unjust, unreasonable,
unlawful, imprudent, or otherwise not in the public interest by any court or
government agency of competent jurisdiction, then such term, covenant, or
condition shall remain in force and effect to the maximum extent permitted by
law, and all other terms, covenants, and conditions of this Agreement and their
application shall not be affected thereby, but shall remain in force and effect and
the Parties shall be relieved of their obligations only to the extent necessary to
eliminate such regulatory or other determination unless a court or governmental
agency of competent jurisdiction holds that such provisions are not separable
from all other provisions of this Agreement.
19.8 Assignments. Either Party may assign its rights and obligations under this
Agreement, with the other Party's prior written consent, in accordance with
Section 17 of the ISO Tariff, which is incorporated by reference into this
Agreement. Such consent shall not be unreasonably withheld.
19.9 No Regional Transmission Organization or Participating TO Obligation:
Nothing in this Agreement shall obligate or commit Vernon to become a member
of any regional transmission organization (RTO) or to remain a Participating TO.
19.10 FERC Jurisdiction over Vernon. Vernon is not a "public utility" as currently
defined in the Federal Power Act and by entering into this Agreement does not
consent to FERC jurisdiction or waive its rights to object to FERe asserting
jurisdiction over Vernon.
31
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed on behalf of each by and through their authorized representatives as of the
date' hereinabove written.
."
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION
By:
Name:
Title:
Date:
CITY OF VERNON
ATTEST:
/
Ib-~-'
Bruce V. Malkenhorst, Jr.
Acting City Clerk
APPROVED AS TO FORM:
~
Bruce V. Malkenhorst, Jr.
Assistant City Attorney
@
e
32
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SCHEDULE 1
VERNON'S SYSTEM FACILITIES
[Section 1.2]
The following facilities form Vernon's System, including the Points of
Interconnection and Point of Delivery.
For Vernon:
A) Point Of Interconnection: Laguna Bell kV bus
The Point of Interconnection of the City of Vernon to the ISO Control Area
grid is at Line Disconnect Switches 45,46,47,48, and 49 which are in the
66 kV lines emanating from the Laguna Bell 66 kV bus that go to the City
of Vernon's system.
B) Point of Delivery: Laguna Bell 230 kVbus
The interface between the City of Vernon and the ISO Controlled Grid is at
the Laguna Bell 230 kV bus, which is the Point of Delivery for transactions
in the ISO wholesale market.
C) Vernon Load
At Laguna Bell 230 kV bus interconnections (SP15 Demand Zone)
D) Generation Facilities: H. Gonzales Units #1 and #2
Malburg Generation Station
33
CITY OF VERNON MSS AGREEMENT
SCHEDULE 2
OPERATION STANDARDS
[Section 4.2]
The ISO shall maintain stable operating parameters and control of real and reactive
power flows in accordance with the following Operation Standards. Vernon shall
maintain stable operating parameters and control of real and reactive power flows in
accordance with the Laguna Bell-Vernon Interconnection Service Agreement between
seE and Vernon (or a replacement agreement provided that any replacement
agreement preserves Vernon's obligations to maintain stable operating parameters and
control of real and reactive power flows in coordination with SCE in a manner that
meets the requirements of the ISO Tariff and in accordance with Section 8.3 of this
Agreement and this Schedule 2), which is incorporated herein by reference.
Vernon Responsibilities
1.0 Vernon shall operate the facilities of Vernon's System in such manner as to avoid
any material or adverse impact on the ISO eontrol Area. In accordance with this
performance goal, Vernon shall:
1.1 Operate the facilities of Vernon's System and maintain protective systems and
reactive power flows at each Point of Interconnection within established
operating parameters including normal ratings, emergency ratings, voltage limits,
and balance of Load between electrical phases in accordance with the Laguna
Bell-Vernon Interconnection Service Agreement between SCE and Vernon (or a
replacement agreement that meets the requirements described above).
ISO Responsibilities
2.0 The ISO shall operate the ISO Controlled Grid in such manner as to avoid any
material or adverse impact on Vernon facilities. In accordance with this
performance goal, the ISO shall:
2.1 Participate with Vernon and SCE in the development of joint power quality
performance standards and jointly maintain compliance with such standards.
2.2 Observe Vernon grid voltage limits specified in Attachment 1 including
requirements for reduced voltage on ISO Controlled Grid facilities which apply
during heavy fog (or other unusual operating conditions) as needed to minimize
the risk of insulator flashover. Any anticipated reduction in operating voltages on
ISO Controlled Grid facilities shall be studied and established by Vernon and the
ISO.
2.3 Approve Vernon's maintenance requests in a timely manner for transmission
facilities that impact the ISO eontrolled Grid, and shall not unreasonably withhold
34
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approval of such requests for authorization to perform energized insulator
washing work or to take planned Outages needed to replace or insul-grease
insulators.
2.4 Support Vernon investigation of power quality incidents, and provide related data
to Vernon in a timely manner.
2.5 Support installation of apparatus on the ISO Controlled Grid to improve power
quality, and take all reasonable measures to investigate and mitigate power
quality concerns caused by actions or events in neighboring systems or Control
Areas.
35
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SCHEDULE 2
ATTACHMENT 1
VERNON GRID VOLTAGE LIMITS
There are no Vernon grid voltage limitations at the present time.
36
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SCHEDULE 3
RIGHTS OF ACCESS TO FACILITIES
[Section 4.5.1]
1.0 Equipment Installation. In order to give effect to this Agreement, a Party
that requires use of particular equipment (the equipment owner) may require
installation of such equipment on property owned by the other Party (the
property owner), provided that the equipment is necessary to meet the
equipment owner's service obligations and that the equipment shall not have
a negative impact on the reliability of the service provided, nor prevent the
property owner from performing its own obligations or exercising its rights
under this Agreement.
1.1 Free Access. The property owner shall grant to the equipment owner free of
charge reasonable installation rights and rights of access to accommodate
equipment inspection, maintenance, repair, upgrading, or removal for the
purposes of this Agreement, subject to the property owner's reasonable
safety, operational, and future expansion needs.
1.2 Notice. The equipment owner shall provide reasonable notice to the property
owner when requesting access for site assessment, equipment installation, or
other relevant purposes. Such access shall not be provided unless the
parties mutually agree to the date, time, and purpose of each access.
Agreement on the terms of the access shall not be unreasonably withheld or
delayed.
1.3 Removal of Installed Equipment. Following reasonable notice, the
equipment owner shall be required, at its own expense, to remove or relocate
equipment, at the request of the property owner, provided that the equipment
owner shall not be required to do so if it would have a negative impact on the
reliability of the service provided, or would prevent the equipment owner from
performing its own obligations or exercising its rights under this Agreement.
1.4 Costs. The equipment owner shall repair at its own expense any property
damage it causes in exercising its rights and shall reimburse the property
owner for any other reasonable costs that it may be required to incur to
accommodate the equipment owner's exercise of its rights under Section 4.5
of this Agreement.
2.0 Rights to Assets. The Parties shall not interfere with each other's assets,
without prior written agreement.
3.0 Inspection of Facilities. In order to meet their respective obligations under
this Agreement, each Party may view or inspect facilities owned by the other
37
elTY OF VERNON MSS AGREEMENT
Party. Provided that reasonable notice is given, a Party shall not
unreasonably deny access to relevant facilities for viewing or inspection by
the requesting Party.
38
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SCHEDULE 4
MAINTENANCE COORDINATION
[Section 5.1.2]
By October 15th of each year, Vernon shall exchange with the ISO a provisional planned
outage program for all lines and equipment in Schedule 1. That document will' be
updated quarterly and as changes occur to the proposed schedule.
The ISO shall approve all proposed outages on the generating facilities listed on
Schedule 1 unless a proposed outage would cause the ISO to violate Applicable
Reliability Criteria. Approval of outages shall not be unreasonably withheld.
Applications for scheduled work shall be submitted to the ISO by Vernon via means to
be agreed to by both Parties. The documents submitted by Vernon shall record the
details for all work and become the database for reporting and recording outage
information.
39
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SCHEDULE 5
CRITICAL PROTECTIVE SYSTEMS
[Section 5.3]
Distribution protective relay schemes affecting the ISO Controlled Grid are those
associated with transformers that would trip transmission breakers and/or busses when
activated. These would include any of the following:
1. High Side Overcurrent Relays
2. Differential Overcurrent Relays
3. Sudden Pressure Relays
4. Low Oil Relays
5. Neutral Ground Overcurrent Relays
6. On fuse protected transformers, it would be the high-side fuses.
With respect to Vernon, operational control and maintenance responsibilities related to
the facilities described above reside with SCE.
40
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ISO:
Transmission Dispatcher
(Folsom):
Transmission Dispatcher
(Alhambra):
Shift Manager:
Director of Grid Operations:
City/State/Zip Code:
Other ISO Operations Phones:
Generation Dispatcher
(Folsom ):
Generation Dispatcher
(Alhambra):
Reliability Coordinator:
Real Time Scheduler:
(Folsom)
Real Time Scheduler:
(Alhambra)
Pre Scheduler:
Control Room fax:
Outage Coordination:
Fax:
SCHEDULE 6
OPERATIONAL CONTACTS
[Section 5.4]
(916) 351-2492 or 2497
(626) 537-2831 or 2832
(916) 351-2490
(916) 351-2101
California ISO
151 Blue Ravine Road
Folsom, CA 95630
(916) 351-2489 or 2488
(626) 537-2830
(916) 351-2498
(916) 351-2495 or 2493
(626) 537-2836 or 2837
(916) 351-2484
(916) 351-2268
(626) 537-2766
(626) 537-2919
41
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Vernon:
Name of Electric System Dispatcher:
Address:
City/State/Zip Code:
Email address:
Phone:
Fax:
Prescheduler:
Real-Time:
Operations Shift ManaQer
4305 Santa Fe Avenue
Vernon. CA 90058
CONTROLCENTER@CI.VERNON.eA.US
(323) 585-6069
(323) 585-3119
(323) 826-1424
(323) 585-6069
42
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SCHEDULE 7
EMERGENCIES
[Section 7.2]
The ISO shall notify Vernon's Electric System Dispatcher, as identified in Schedule 6, of
the emergency, including information regarding the cause, nature, extent, and potential
duration of the emergency. Depending on the nature of the emergency and the
particular response required, such notification shall be made to Vernon either directly by
the ISO or through the Area Control Center (Aee) specified by the ISO, currently the
SeE ACC. The Vernon Electric System Dispatcher shall make the appropriate
notifications within the Vernon organization. The Vernon Electric System Dispatcher
shall then take such actions as are appropriate for the emergency in accordance with
Section 7 of this Agreement.
Vernon shall make requests for real-time information from the ISO regarding
emergencies through contacts to the ISO's Operations Shift Manager, by Vernon's
Electric System Dispatcher, or Vernon's Communication Coordinator may coordinate
public information with the ISO eommunication Coordinator.
Vernon is required to estimate service restoration by geographic areas, and shall use its
call center and the media to communicate with customers during service interruptions.
Vernon will communicate necessary information to appropriate state, local
governmental entities, and its customers as needed. For Vernon outages that may be
caused by events affecting the transmission system, the Vernon Electric System
Dispatcher will make appropriate notifications to the ISO of any information related to
the outage such as cause, nature, extent, potential duration and customers affected.
Non-confidential Vernon and non-confidential ISO data recorded in ISO Grid Control
Center logs, Electric Switching Orders and Energy Management System temporal
database will be used in preparation of outage reviews. These documents are defined
as the chronological record of the operation of the activities which occur with the portion
of the electrical system assigned to that control center. The log shall contain all
pertinent information, including orders received and transmitted, relay operations,
messages, clearances, accidents, trouble reports, daily switching program, etc.
Vernon shall retain records in accordance with its standard practices for record retention
for not less than six years.
43
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SCHEDULE 8
UNDERFREQUENCY LOAD SHEDDING
[Section 7.4.1]
The objective of the Underfrequency Load Shedding ("UFLS") program is to provide
security and protection to the interconnected bulk power network by arresting frequency
decay during periods of insufficient resources.
This plan establishes Underfrequency Load Shedding objectives consistent with
the Load Shedding policies of the Western Electricity eoordinating Council, the North
American Electric Reliability Council and Vernon. Vemon's UFLS program is set forth in
its UFLS Procedures and pursuant to the Laguna Bell-Vernon Interconnection Service
Agreement with SCE. Such agreement provides that Vernon's load shedding
equipment will be compatible and coordinated with Edison's load shedding equipment
and that Edison will set the amount to be shed.
Vernon currently maintains an Underfrequency Load Shedding Procedure under
Electrical Operating Procedure (EOP) No.7, as revised October 18, 2005, which is
attached hereto and incorporated herein by reference. This procedure is in support of
SCE's System Operating Bulletin (SOB) No. 115.
Vernon shall develop a separate UFLS program prior to such time as the SCE
plans described above may cease to apply to Vernon. Upon such replacement program
Vernon shall comply with directions from the ISO to implement Vernon's Load Shedding
program in accordance with the WECC Off-Nominal Frequency Load Shedding and
Restoration Plan (Final Report November 25, 1997, as revised December 5, 2003 or as
it may be amended by the WECC from time to time). Vernon's UFLS program shall
utilize WEeC planning criteria in this area. Per WECe requirements, UFLS shall be on
the feeder side of the transformer.
This Schedule will be revised to incorporate that separate UFLS program by
reference upon its implementation by Vernon. Vernon shall notify the ISO of any
changes to its existing UFLS program prior to implementation of such changes. At no
time shall Vernon be exempt from either participating in an ISO-sanctioned third party
UFLS program (currently with SCE) or implementing such program independently in full
compliance with WECC requirements.
Vernon shall also comply with directions from the ISO to implement the
requirements of the WEeC Southern Island Load Tripping Plan (July 22, 1997, or as it
may be amended by the WECC from time to time) ("SILT"), to the extent Vernon's
compliance with SILT requirements is not satisfied through Vernon's UFLS program.
44
CITY OF VERNON
UTILITIES DEPARTMENT
EFFECTIVE DATE: October 18, 2005
REVISION DATE: October 18, 2005
ELECTRICAL OPERATING PROCEDURE NO.7
TITLE: UNDERFREQUENCY PROCEDURE
Contents:
I . Preface
I I . Responsibilities
I I I. Procedure
IV. Table 1 - Underfrequency Load drop Schedule
I. Preface
This operating procedure is in support of southern
California Edison (SCE) System Operating Bulletin (SOB) No.
115 entitled "Procedure for Shedding Load and Separating
Interconnections in the Event of Excessive Low Frequency".
Automatic load shedding is initiated to match the load
demand with the available generation resources thus allowing
the frequency to recover. Manual load shedding may also be
required to expedite frequency recovery.
SCE intends to implement other less severe load curtailment
options where time permits. Refer to SCE's SOBs 19, 20, 21
and City of Vernon's (COV) Electrical Operating Procedures
(EOP) 19, 20 and 21.
II. Responsibilities
The COV's distribution system is equipped with
underfrequency load shedding relays. The setting of these
relays supports the Control Area's (SCE) underfrequency
scheme which in turn supports the Western Systems
Coordinating Council (WSCC) underfrequency relay scheme.
A. Electrical Engineering shall:
1. determine the designated underfrequency loads
to be committed to the underfrequency load
shedding.
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2. coordinate the underfrequency relay
protection scheme installed on City
facilities.
3. coordinate design changes with COV divisions
and SCE.
4. coordinate the setting, testing and
maintenance of underfrequency relays.
B. The COV Control Center Systems Coordinator I
shall:
1. report underfrequency operations to SCE
Center Substation and COV management.
2. operate underfrequency relays for routine
switching and during the implementation of
emergency underfrequency procedures.
3. maintain AC power source to the UF relays at
all times in accordance with station
operating instructions.
4. utilize local generation to pick up all or
part of City load that has been shed by the
UF relays and that has separated from the SCE
system.
III. Procedures
A. Making UF Relays Solid
Underfrequency relay protection may be made solid,
(non-automatic) for specific switching procedures
when authorized by the Systems Manager.
Underfrequency relays, when authorized to be
solid, shall be held to the minimum time possible.
Notify Center Substation when underfrequency
relays are made solid and/or automatic.
B. UF Relay Operation Notifications
When underfrequency relays have shed City load,
the City Systems Coordinator I shall notify Center
Substation, COV Utility management and COV
Fire/Police Dispatch Center.
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C. Manual Load Shed Procedures
The Systems Coordinator I shall shed load manually
if the system frequency is at or below the
designated low frequency trip point for a
scheduled bank while the underfrequency relays are
solid or out of service.
D. Generation
Dispatch qualified personnel to bring available
COV generation on-line after a UF operation.
Coordinate activities with SCE. Adhere to Station
Instructions and initiate switching to pickup load
that has been shed by UF relays with "available"
local generation.
E. Restoration Procedures
1. With Communication with SCE Coordinate
restoration with the SCE Operator at Center
Substation or the SCE Grid Control Center
(GCC). Do not engage in unnecessary
conversation.
Note. Adhere to Vernon and Leonis Station
Instructions to recover affected banks.
2. Without Communication with SCE After an
automatic UF load shedding operation, if
unable to communicate with the Grid Control
Center, make one attempt to restore load,
when the frequency is at or above 60.0 Hz.
If the load pickup causes the frequency to
drop below the trip point, the load should be
dropped immediately. No further attempts
shall be made to pick up load without orders
from the SCE GCC.
F. System Failure
Should the automatic and manual load shedding be
insufficient to allow the frequency to effectively
recover, a total system shut down may occur. Refer
to SCE SOB No. 98 for restoration procedures.
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Table 1
City of Vernon
Underfrequency Load Drop Schedule
,
Frequency Substation Load Dropped
58.7 Vernon #2 Bk 66/7kv
58.6 -
58.5 -
58.4 Leonis #4 Bk 66116kv
58.3 Leonis #5 Bk 66/16kv
58.2 -
58.1 -
58.0 -
57.9 Vernon #3 Bk 66/7kv
57.8 -
57.7 Leonis #2 & #3 Bks 66/7kv
Approved:
Carlos Fandino
Systems Manager
Approved:
Jorge C. Somoano
Engineering Operations Manager
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SCHEDULE 9
OTHER AUTOMATIC LOAD SHEDDING
[Section 7.4.1]
Vernon currently employs an automatic Underfrequency Load Shedding program only,
as described in Schedule 8. At present Vernon does not utilize an under-voltage Load
Shedding program.
45
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SCHEDULE 10
MANUAL LOAD SHEDDING
[Section 7.4.3]
Vernon currently maintains a plan, under Electric Operating Procedure No. 20 as
revised June 28, 2004 which is attached hereto, whereby nonessential distribution
circuits are subjected to manual shedding and rotating service interruptions when
required by Southern California Edison Company (SCE) in accordance with SCE
System Operating Bulletin No. 21 and its applicable Attachments and the Laguna Bell-
Vernon Interconnection Service Agreement between SCE and Vernon (or a
replacement agreement provided that any replacement agreement preserves Vernon's
obligations in accordance with this Schedule 10), both of which are incorporated herein
by reference. Until such time as Vernon implements a plan for manual Load Shedding
and rotating service interruptions independent of SCE, Vernon shall continue to operate
in accordance with the existing plan.
Vernon shall develop a separate manual Load Shedding program prior to such time as
the SCE plans described above may cease to apply to Vernon. This Schedule will be
revised to incorporate that separate manual Load Shedding program by reference upon
its implementation by Vernon.
46
CITY OF VERNON
UTILITIES DEPARTMENT
EFFECTIVE DATE: JUNE 26, 1989
REVISION DATE: June 28, 2004
ELECTRIC OPERATING PROCEDURE NO. 20
TITLE: EMERGENCY STAGE ALERTS, BROADCASTS and LOAD DROP
PROCEDURE
Contents:
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
Preface
Responsibilities
Procedures
References
Table 1 - Circuit Load Drop Schedule
Table 2 - Traffic Signal List
Stage Alert Broadcast Procedure
Stage Alert Broadcast Files (form files)
I. Preface
This operating procedure is in support of the Western
Systems Coordinating Council (WSCC) MORC (Minimum
Operation Reliability Criteria), the California
Independent System Operator's (ISO) Operating Procedures
E-502, E-504, E-508 and Southern California Edison's
(SCE) Operating Bulletin #21 entitled "Capacity Shortage
Contingency Plan". The program is comprised of a series
of notices. A Stage 3 alert occurs when generation
operating reserves in the ISO Control Area fall below
1.5%. Under Stage 3 condition, rolling outages may
begin.
Orders to drop or restore City of Vernon (COV) load will
come from the ISO. As a Participating Transmission
Owner (PTO) and a Scheduling Coordinator (SC), the COV
Control Center will have real-time knowledge of Stage
Alert conditions.
Load segments will be de-energized for periods of
approximately one [1] hour. After one hour, the ISO may
renew the order depending on system conditions. This is
repeated until the emergency condition has concluded.
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II. Responsibilities
The COV Systems Coordinator I shall implement the load-
drop procedure immediately after official notification
from the ISO.
The COV Systems Coordinator I shall record all events
relative to this procedure in the Systems Log in
accordance with General Operating Procedures No.5,
Systems Log.
In the event that a "scheduled" COV distribution circuit
is found to have critical load (utility facility,
police/fire, medical) during an emergency manual load
drop, a situation that was not recognized or had
developed after the circuit was scheduled, it may be
substituted with a circuit of similar total load.
The COV Systems Manager shall regularly maintain, review
and update emergency load drop information including:
1. Emergency Load Drop Schedule (see Table 1)
2. Traffic Signal List (see Table 2)
The COV Police Department shall be provided with a
Traffic Signal List for its use during outages caused by
the "emergency load drop" incident. The actions pursued
by the COV Police Department will be at its discretion.
The intent of the Traffic Signal List is to provide
reasonable response by the COV Utilities Department and
the COV when traffic signals are deactivated by this
operating procedure. The COV Control Center shall
notify the COV Community Services Department (CSD)
and/or Stand-By personnel of intersections without
power.
The COV Systems Coordinator I on duty shall also
implement the COV customer Stage Alert Broadcast
Procedure.
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III. Procedure
After each load curtailment notification, the COV
Systems Coordinator I shall perform the required
operation to alleviate the emergency condition:
1. Drop Owill Substation load. This load is
available for curtailments on Mondays through
Thursdays for a total of 12 hrs per week. This
will be enacted for drops of about 2.5 mw.
Verify and record load before and after.
Adhere to switching procedure, OWILLST3.
2. Operate the COV Diesel units. This will
normally be enacted when there is enough lead-
time and when the required curtailment is
greater than 2.5 mw. Verify output details and
operation constraints with the generation lead
person.
3. Drop loads in accordance with Table 1. Enact
this step whenever steps 1 and 2 above cannot
meet the City's curtailment requirement.
Every effort shall be made to provide notice to the COV
customers that will be without electric service.
Should any substation supervisory control equipment be
inoperative at the time of an emergency load drop
situation, a COV qualified operator shall be dispatched
to the substation, and shall remain at the substation
until the emergency situation ends.
Each rotating outage is intended to be for a period of
approximately one [1] hour.
Time permitting, before shedding load (COV distribution
circuits) :
1. Notify the COV Police Dispatcher of the traffic
signals out. The traffic signal locations are
indicated on Table #2.
2. Notify COV CSD and/or Stand-By personnel of traffic
signals out of power.
3. Notify the COV Systems Manager and the COV
Assistant Director of Engineering and Operations
that Stage III of the ISO load drop contingency
plan has been initiated.
After an emergency load drop stage has been officially
terminated and switching is complete, notify the COV
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Police Dispatcher that all circuits/ which were de-
energized/ are now energized and that the affected
traffic signals should now be normal.
IV. References the following documents should be reviewed in
conjunction with this procedure:
seE SOB No. 21, Capacity Shortage Contingency Plan
(10/01/2001) .
ISO E-502/ E-504, E-50B.
Approved:
Carlos R. Fandino Jr.
Systems Manager
Approved:
Manuel G. Garcia
~enerations Operations Manager
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Table 1 - Load Drop Schedule
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Block eircuit Load Traffic Signals Special eonditions/Notes
I 1 1 3.4 Perf. Freezer Service - One of 50 largest.
2 3.7 Pacific/F ruitland Liquid Cont. - One of 50 largest.
8 2.4 SotoNernon PWP Ind. - One of 50 largest.
-g.5
2 9 4.8 S. Soto/E. 26th
5 2.9 Santa FeNernon Pabco Paper - One of 50 largest.
7 3.3 Santa Fe/37-38th; 28th: 27th Hannibal Ind. - One of 50 largest.
11.0
3 6 4.2 Santa Fe/48th IVY Hill - One of 50 largest.
12 1.6 '"
13 3.7
9.~
4 14 2.8
15 3.3
16 4.1 Boyle/Leonis; Soto/Fruitland
'10.2
5 48 2.6 Boyle/F ruitland
50 2.3 Santa Fe/25th-26th
51 1.2
52 1.3
54 2.6
-10.0
6 56 2.4
58 1.6
59 2.8 Alcoa/Fruitland
60 4.5
11.3
7 61 1.4 Leonis/Alcoa; Downey Rd.
62 3.1
63 3.7 City Wells #12 & 17and Booster Plant #2
i 64 3.2 Slauson/Alcoa
11.4
8 65 2.4 Downey/Fruitland Booster Plant #3
66 3.0 City Well #19
67 3.4
68 3.2
12.0
9 Rendering 5.7
Ideal 6.4
12.1
10 Sierra Pine 11.3 Bandini/Sierra Pine
11 Basque 12.0 S. Bovle/Slauson
12 Steer 9.9
13 Ziemer 9.4 Bandini/Bonnie Beach; Sunol ,
14 Brearley 10.4
15 Davis 4.8 E. Washington/Hobart
Kaeser 6.9 Pump House #2
11.7
16 Mailliard 14.9
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Table 2 - Traffic Signal List
Circuit Intersection Corner - Meter No. Pole
Basque S. Boyle/Slauson S/E - 203108 10499EV
Ziemer Bandini/Bonnie Bch. N/W - 20349 EV8389
Ziemer Sunol/Bandini S/w - 203109 EV8506
Norris S. Atlantic/District S/E - 83434030 1419124E
Norris Bandini/L.B. Frwy. S/W - 3110637 7320EV
Norris Atlantic/Box USA
Davis E. Washington/Hobart S/W - 3110650 EV9327
sierr.a pine Bandini/Sierra pine N/W - 5887163 8121EV
Gold Pack Santa Fe/Vernon N/W - 90530730 6605EV
Carl Lorna Vista/District N/W - 2035712 13 2 3 VP
2 pacific Blvd/ Fruitland N/E - 203-6 1211V
5 Santa Fe/Vernon N/W - 203-56 EV10401
6 48t:n & Santa Fe S/E - 37953346 6519EV
7 Santa Fe/37-38th St W/SIDE - 20859425 6708EV
7 Santa Fe/28th St S/W - 203-53 6685EV
7 Santa Fe/27th St S/W - 83434095 773447H
8 Soto/Vernon S/E - 5390403 5347EV
9 S. Soto/E. 26th St N/W - 203-47 7500EV
16 Boyle Ave/Leonis S/W - 5394846 EV9955
16 Soto/Fruitland N/E - 83434031 1422VP
19 Santa Fe/Fruitland N/E - 203-17 10645EV
20 S. Soto/E. 37th St N/E - 30360402 EV10428
20 Jewel Ave/E. 37th St s/w - 7439752 1106VP
20 Soto/Farmer John
23 S. soto/Leonis N/W - 83434027 1438049E
25 Pacific Blvd/Leonis S/W - 2035711 1567241E
28 Santa Fe/55th St S/E - 203-48 53V
47 Santa Fe/25-26th St. N/E - 5387576 337312M
48 S. Boyle/Fruitland S/w - 20839971 1369228E
53 E. Slauson Ave/Downey N/W - 203-64 10632EV
59 Alcoa Ave/Fruitland S/E - 203-2 6019EV
61 Alcoa/Leonis S/E - 203-9 1286V
61 Downey/Leonis
64 E. Slauson Ave/Alcoa N/E - 5393873 613V
65 Downey Rd/Fruitland N/W - 203-45 7117EV
69 Downey/Vernon N/W - 5388386 13 59VP
69 Downey/Bandini
U:\Contracts\City of Vemon.MSSA_EOP20 _101 805.doc
01/09/061:37 PM
Page 7 of \0
VIII. Stage Alert Broadcast Procedure
Fax and e-mail procedure
1) Revise the document to be e-mailed or faxed.
a) Stage 1
1. Open Stage1 document form letter.
2. Revise the time duration of the emergency.
Carefully check the document for relevance and
accuracy.
3. Save file as Istagemmdd.doc. under
pwrplt/ccserver/stage alerts
Example: For Stage 1 emergency on Friday, August
18th 2000, the file will be saved as
lstage081800.doc.
b) Stage 2
1. Open Stage2 document form letter.
2. Revise the time duration of the emergency.
3. Insert the next two blocks that will be likely
to get curtailed. The block numbers are
numerical; i.e. #1, 2, 3 to correspond with the
block numbers assigned to customers. Carefully
check the document for relevance and accuracy.
4. Save file as 2stagemmdd.doc. under
pwrplt/ccserver/stage alerts
Example: For Stage 2 emergency on Saturday,
August 19th 2000, the file will be saved as
2stage081900.doc.
c) Stage 3
1. Open Stage3 document form letter.
2. Insert the next two block numbers that will be
curtailed.
3. Insert the most recent rolling blackout schedule
using the designated sequence. Carefully check
the document for relevance and accuracy.
4. Save file as 3stagemmdd.doc. under
pwrplt/ccserver/stage alerts
U:\Contracts\City ofVemon.MSSA_EOP20 _10 180S.doc
01109/061:37 PM
Page 8 of 10
Example: For Stage 3 emergency on Sunday,
August 20th 2000, the file will be saved as
3stage082000.doc.
2a) Faxing Stage Emergency Notification
a) Connect to http://www.medialinq.com.
b) Select the WebLinq button at the top of the page.
Med~Lin~r~~i1=rT~~'~rm6~1~l~1
.................
(ra . r+;
... -..
.... ....
. _; - . . . - . a .
c) Click on the customer login button.
Enter the following information to log
in toWt"hl.inn
Password
L~_..............................-.....
L~~~...~.....~~~..i
Login Name
d) Enter: Login Name - vernon
Password - 1k4r5c7 (MG 9/19/00)
e) Click the login button.
U:\Contracts\City of V emon.MSSA _EOP20 _10 1805.doc
01/09/061:37 PM
Page 9 of 10
f) A security alert window will appear, click the "Yes"
button.
AVT MediaUnq OnUne Service-oS
it
..
lif'.
....
..
..
.
...............................
.- .-.
...
.
-.. ....
..................
g) Select "Launch a Fax Broadcast".
h) Select from the list box (currently the most recent
file is 002). Select the file list 002 by clicking
on it; the file will get highlighted. Go to next
step button.
i) Select the document that will be faxed by clicking on
the Browse button. The file sent must be the most
recent document, created in Step 1, and must
correspond to the emergency situation. For example,
if sending Stage 2, the file is 2stage0819.doc.
j) Click on the arrow below the document. A window
listing various document formats wil~ appear; select
Microsoft Word (doc.)
k) Leave the default for resolution to Standard.
1) Select the "radio" button to attach more documents to
"No."
m) Click "Next Step".
n) Select "Immediately" on the next screen.
0) Select "Next Step" to send fax.
U:\Contracts\City ofVemon.MSSA_EOP20 _I 01805.doc
01109/06 1 :37 PM
Page lO of 10
2b) E-mailing Stage Emergencies
a) Log on to the control center e-mail profile.
b) Select the "AAA...Stage Alert Dist. List" in the
contacts section of the Global e-mail directory.
c) Attach the corresponding Stage Alert notice.
d) Send.
NOTE: Do not change, add, delete, or revise the
distribution list.
IX. Stage Alert Broadcast Files (for.m files)
~.,,'ft'
, ~.~."-"'~'
. ,,'A','-,
Slagel.doc
Slage2.doc
See other Stage Alert files under CCServer/Stage Alerts.
U :\Contracts\City of Vemon.MSSA _ EOP20 _10 1805.doc
01/09/061:37 PM
Page 11 oflO
CITY OF VERNON MSS AGREEMENT
SCHEDULE10A
ROTATING LOAD CURTAILMENT PROCEDURES
[Section 7.4.3]
Vernon rotating Load curtailment procedures are described in Schedule 10. To
maintain the required amount of continuously interrupted Load, as directed by the ISO,
for an extended amount of time, no portion of Vernon's interrupted Load shall be
restored unless an equal or greater amount of Load is interrupted first, as necessary to
maintain the required amount of interrupted Load.
47
CITY OF VERNON MSS AGREEMENT
SCHEDULE10B
INTERRUPTIBLE LOAD
[Section 7.4.3]
Vernon has not implemented a program for interruptible Loads.
Should Vernon seek to implement any interruptible Load program, Vernon shall provide
a complete description of the program to the ISO at least sixty (60) days prior to the
incorporation of the program into the Vernon EEP, and all applicable Operating
Procedures shall be followed.
48
CITY OF VERNON MSS AGREEMENT
SCHEDULE 11
ELECTRICAL EMERGENCY PLAN
[Section 7.5.1]
The City of Vernon currently supports SCE's EEP program as reflected in
Vernon's Electric Operating Procedure No. 7 which is incorporated herein by
reference pursuant to Schedule 8 and Vernon's Electric Operating Procedure No.
20, which is incorporated herein by reference pursuant to Schedule 10.
For purposes of this Agreement, Vernon and the ISO agree that the Vernon EEP
shall be interpreted to provide that:
1) Vernon shall continue to act upon ISO instructions in accordance with the
provisions of Article VII and cause the required amount of Vernon firm Load to
be interrupted during any hour of any day (24 x 7);
2) Vernon shall satisfy its requirement to interrupt the required amount of firm
Load within ten minutes from the time of notification by the ISO dispatcher;
3) the implementation of any substitution of back-up generation and "voluntary"
Load interruptions, on an "as-available" basis, for the required amount of firm
Load interruption, as set out in the Vernon EEP and incorporated herein by
reference, shall not obviate or interfere with required timely compliance;
4) should Vernon use, wholly or partially, any combination of back-up generation
or "voluntary" Load interruption to substitute for an amount of its firm Load
interruption obligation, the effects of such substitution shall be no different
than those that would have resulted from an equivalent amount of firm Load
interruption without such back-up generation or voluntary Load interruption,
and the actual cumulative effect(s) of such substitution shall be subject to the
same rules of verifiability and reporting as those for the firm Load
conventionally interrupted on such occasions; and
5) should rotation of Vernon's firm Load blocks be required to maintain a
minimum amount of continuously interrupted Load, as defined by the ISO
dispatcher in accordance with the provisions of Article VII, for an extended
amount of time, no block of Vernon's firm Load shall be restored unless an
equal or greater amount of another block of Load is interrupted first, and in
the event Vernon uses any combination of substitutions for its firm Load
interruption obligation as permitted in section 4) above, any rotation of, or
changes to, such substitutions shall be made such that the equivalent
required Load relief level is maintained during the entire applicable time.
49
CITY OF VERNON MSS AGREEMENT
SCHEDULE 12
LOAD RESTORATION
[Section 7.4.4]
Vernon shall follow the procedures set forth below in this Schedule 12 in promoting
orderly, coordinated restoration of electric systems after a major system disturbance
has occurred which resulted in Load Shedding by frequency relays in California.
1. Immediately after Load Shedding by frequency relay(s) has occurred in
Vernon's System, Vernon shall remain in contact with the Area Control
Center (ACC) specified by the ISO, currently the SCE ACC, until normal
frequency has been restored throughout the ISO Control Area or the ISO
Shift Manager has concluded that such full-time communications can be
terminated. Emergency communications over the California ACC Hot-line
will be under the direction of the ISO Shift Manager and the senior
dispatcher present at the SCE ACC(s).
2. Manual Load restoration shall not normally be initiated until the California
ACC Hot Line is attended. No Load is to be manually restored unless
directed by the ISO, either directly or through its assignee, provided that
the procedure for the ISO's designation of any assignee is agreed to by
Vernon, after the frequency has recovered and there is indication that the
frequency can be maintained. Vernon shall await direction from the ISO
or its assignee, who will be in contact with the ISO Shift Manager. The
ISO Shift Manager shall determine whether adequate Generation
resources are available on line to support the Load to be restored.
3. Vernon's automatic Load restoration will be consistent with the WECC
Coordinated Off-Nominal Frequency Load Shedding and Restoration Plan.
4. If the ISO cannot meet the WECC and NERC Control Area Disturbance
Control Standard or the Control Performance Standard post disturbance,
no manual Load restoration shall be permitted. If the frequency is such
that automatic Load restoration occurs under these conditions, if Vernon
has restored Load automatically, it will manually shed an equivalent
amount of Load to offset the Load which was automatically restored.
5. Restoration of ties and off-site power supply to nuclear generating facilities
should be given top priority. Manual Load restoration will be deferred
during periods of tie restoration. Vernon should be equipped and
prepared to drop Load manually when necessary to allow frequency
recovery sufficient to re-establish ISO intra-area ties and ties between the
ISO Control Area and outside systems. Where manual Load shedding is
required, the ISO shall make reasonable efforts to allocate the Load
Shedding requirement equitably among Vernon, UDCs. and MSS
Operators where Load Shedding shall be beneficial, and such Load
Shedding shall be made in accordance with Section 7.4.
50
CITY OF VERNON MSS AGREEMENT
6. Vernon shall use its existing plans and priorities to restore Load within the
parameters given by the ISO, giving the appropriate priority to essential
services such as military, public safety agencies, water treatment plants,
sewage treatment plants, etc.
51
CITY OF VERNON MSS AGREEMENT
SCHEDULE 13
[NOT USED]
52
CITY OF VERNON MSS AGREEMENT
SCHEDULE 14
GENERATING UNITS AND MARKET-PARTICIPATING LOADS
[Section 10.1]
Vernon has identified in the attached table all of the individual Generating Units that it
owns or controls in the ISO Control Area, together with certain information required by
the ISO. Vernon does not currently have any Curtailable Demand eligible to participate
in the ISO's markets as market-participating Load.
53
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U
CITY OF VERNON MSS AGREEMENT
SCHEDULE 14 A
GENERATING UNITS AND MARKET-PARTICIPATING LOADS
[Section 11.4]
1. Vernon's Generating Units
a. Malburg Generating Station including CTG Unit 1 & 2 and STG Unit 3
b. H. Gonzales Unit 1 & 2
2. Vernon's Entitlement from the Boulder Canyon Power Project (Hoover Dam)
through Vernon power purchase agreement with Western Area Power
Administration.
54
CITY OF VERNON MSS AGREEMENT
SCHEDULE 15
METERING OBLIGATIONS
[Section 12.2]
Obliaations and Riahts of Vernon
1.0 Submission of Meter Data through the ISO's Revenue Meter Data
Acquisition and Processing System ("MDAS"). Vernon agrees to make
available to the ISO through MDAS its Meter Data in accordance with the ISO
Tariff. The ISO's requirements regarding the frequency with which it requires
Meter Data to be made available to it through MDAS by Vernon are referred to in
the Metering Protocol of the ISO Tariff.
1.1 Meter Information. Vernon shall provide in the format prescribed by Schedule
15.1 the required information with respect to all of its meters used to provide
Meter Data to the ISO. Vernon must immediately notify the ISO of any changes
to the information provided to the ISO in accordance with this Section and
provide the ISO with any information in relation to such change as reasonably
requested by the ISO. Vernon shall have the right to modify Schedule 15.1,
although such modification shall not constitute an amendment to this Agreement.
1.2 Transformer and/or Line Loss Correction Factor. Vernon shall use the loss
correction factor referred to in the Laguna Bell-Vernon Interconnection Service
Agreement.
1.3 Rights to Access Metering Facilities. Vernon shall use its best efforts to
procure any rights necessary for the ISO to access all Metering Facilities of
Vernon to fulfill its obligations under the ISO Tariff, and its obligations under this
Agreement. If, after using its best efforts, Vernon is unable to provide the ISO
with such access rights, Vernon shall ensure that an ISO Authorized Inspector
undertakes, at the ISO's request, the certification, testing, inspection andlor
auditing of those Metering Facilities in accordance with the procedures
established pursuant to the Metering Protocol of the ISO Tariff, including the
requirement to complete and provide to the ISO all necessary documentation.
The ISO acknowledges that it will not be prevented from fulfilling its obligations
under the ISO Tariff or this Agreement by reason of the fact that it is provided
with escorted access to the Metering Facilities of Vernon.
1.4 Security and Validation Procedures. The security measures and the
validation, editing, and estimation procedures that the ISO shall apply to Meter
Data made available to the ISO by Vernon shall be as referred to in the Metering
Protocol of the ISO Tariff.
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CITY OF VERNON MSS AGREEMENT
1.5 Authorized Users. In addition to the persons referred to in the ISO Tariff,
including Vernon and the relevant Scheduling Coordinator, as being entitled to
access Meter Data on MDAS, Vernon may set forth in Schedule 15.2 of this
Agreement any additional authorized users that shall be entitled to access
Vernon's Settlement Quality Meter Data held by the ISO. Vernon shall include in
Schedule 15.2 as authorized users the relevant UDCs and TOs. The ISO shall
provide the authorized users with any password or other information necessary
to access Vernon's Settlement Quality Meter Data held by the ISO on MDAS.
Any amendment or addition to Schedule 15.2 shall not constitute an amendment
to this Agreement.
1.6 Certification, Inspection, and Auditing of Meters. Vernon shall be responsible
for all reasonable costs incurred by the ISO or an ISO Authorized Inspector in
connection with them carrying out the certification, inspection, testing or auditing
of the meters identified in Schedule 15.1 from which Vernon provides Meter Data
to the ISO. The ISO or ISO Authorized Inspector shall furnish Vernon, upon
request, an itemized bill for such costs.
Obliaations and Riahts of the ISO
2.0 Direct Polling of MDAS. The ISO shall allow the Scheduling Coordinator
representing Vernon and all authorized users to directly poll MDAS for the Meter
Data relating to Vernon in accordance with the procedures referred to in the
Metering Protocol of the ISO Tariff.
2.1 ISO as a Third-Party Beneficiary. The ISO shall be a third-party beneficiary to
any future agreement between Vernon and any other party relating to the
Metering Facilities of Vernon for the purpose of granting the ISO access to any
relevant information, records and facilities as needed by the ISO to fulfill its
obligations under the ISO Tariff and its obligations under this Agreement.
2.2 Remote and Local Access to Metering Data. The ISO shall provide Vernon
any password or other requirements necessary for Vernon to access its Meter
Data remotely or locally at the meter.
Calculation of Vernon Settlement Qualitv Meter Data
The calculation of Vernon's Settlement Quality Meter Data ("SQMD") shall be made in
accordance with a calculation procedure that is mutually agreed by the Parties, which
calculation procedure will generally be as follows:
Vernon SQMD = MSS Meter Data at the Points of Interconnection
+ Meter Data for Generation from Generating Units
within the MSS
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CITY OF VERNON MSS AGREEMENT
SCHEDULE 15.1
METER INFORMATION
Facility Name/location
Resource 10
Meter 10
Laguna Bell Substation N/A
6301 S. Garfield, City of Commerce
5910508
5910509
5910510
5910511
5910512
H. Gonzales Unit #1 VERNON_ 6 _ GONZL 1
2715 E. 50th St., Vernon, Ca
5910505
H. Gonzales Unit #2 VERNON_6_GONZL2
2715 E. 50th St., Vernon, Ca
5910506
Malburg Generating Station VERNON_6_MALBRG
2715 E. 50th Street, Vernon
Combustion Turbine NO.1
5910407
5910408
5910409
5910410
Combustion Turbine No.2
5910411
5910412
5910413
5910414
Steam Turbine No.1
5910415
5910416
5910417
5910418
Auxiliary Meters
5910419
5910420
5910421
5910422
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CITY OF VERNON MSS AGREEMENT
SCHEDULE 15.2
ACCESS TO METER DATA
AND AUTHORIZED USERS
[Vernon shall provide in Schedule 15.2 a list of all authorized users of Vernon's
Settlement Quality Meter Data and any restrictions or limitations placed on them.]
Southern California Edison (read only)
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CITY OF VERNON MSS AGREEMENT
SCHEDULE 16
[NOT USED]
59
CITY OF VERNON MSS AGREEMENT
SCHEDULE 17
NOTICES
[Section 19.1 and 3.4.3]
Vernon
Name of Primary
Representative:
Donal O'Callaghan
Title:
Directorof Light & Power
Address:
4305 Santa Fe Ave.
City/State/Zip Code:
Vernon, CA, 90058
Email Address:
docallaghan@ci.vernon.ca.us
Phone:
323 583-8811
323 826-1438
Fax No:
Name of Alternative
Representative:
Daniel E. Garcia
Title:
Power & Gas Procurement Manager
Address:
4305 Santa Fe Ave.
City/State/Zip Code:
Vernon, CA, 90058
Email Address:
dgarcia@ci.vernon.ca.us
Phone:
323 826-1422
323 826-1438
Fax No:
Authorized Representative (~3.4.3):
Representative: Dennis M. P. Ehling, Esq.
Address:
10100 Santa Monica Blvd, th Floor
Email Address:
Los Angeles, CA, 90067
dehling@klng.com
City/State/Zip Code:
Phone:
310552-5090
Fax No:
310552-5001
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CITY OF VERNON MSS AGREEMENT
ISO
Name of Primary
Representative:
Title:
Address:
City/State/Zip Code:
Email Address:
Phone:
Fax No:
Name of Alternative
Representative:
Title:
Address:
City/State/Zip Code:
Email Address:
Phone:
Fax No:
Michael Dozier
Lead, Contracts Negotiator
151 Blue Ravine Road
Folsom, CA 95630
mdozier@caiso.com
(916) 608-5708
(916) 351-2487
Philip D. Pettingill
Manager of Infrastructure Policy & Contract Negotiation
151 Blue Ravine Road
Folsom, CA 95630
ppettingill@caiso.com
(916) 608-7241
(916) 351-2264
Authorized Representative (Section 3.4.3):
Representative:
Title:
Address:
City/State/Zip Code:
Email Address:
Phone:
Fax No:
Jim Detmers
Vice President, Operations
151 Blue Ravine Road
Folsom, CA 95630
jdetmers@caiso.com
(916) 351-2123
(916) 351-2350
61