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Resolution No. 8913 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I . 1 2 3 4 5 6 RESOLUTION NO. 8913 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING THE TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT IN ACCORDANCE WITH VERNON'S TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF SHEET CHANGES TO IMPLEMENT THE ADJUSTMENT 7 WHEREAS, the City of Vernon lS a Participating Transmission 8 Owner ("PTO") with the California Independent System Operator ("ISO") and the Federal Energy Regulatory Cormnission ("FERC") has approved its Transmission Owner Tariff ("TO Tariff"); and WHEREAS, the City of Vernon TO Tariff provides for periodic recalculation of the Transmission Revenue Balancing Account Adjustment ("TRBAA"), which is a ratemaking mechanism designed to ensure that all Transmission Revenue Credits are flowed through to ISO transmission customers; and WHEREAS, on December 1, 2004, the City Council of the City of Vernon adopted Resolution No. 8604 establishing the TRBAA and the City made its TRBAA filing on December 7, 2004 in FERC Docket No. EL05-40; and WHEREAS, on January 19, 2005, the FERC accepted the City's December 7, 2004 filing, effective January 1, 2005; and WHEREAS, the City Council, in response to the February 17, 2004 FERC order in Docket No. ELOO-105 on remand from the D.C. Circuit of Appeals, through Resolution 8430, dated April 26, 2004, amended its Resolution No. 7659, dated November 7, 2000, to establish a base TRR of $12,253,797 to replace the $10,216,178 for all purposes, effective January 1, 2001; and WHEREAS, the replacement base TRR is currently subject to a 1. 1 hearing process in Docket No. ELOO-I05 for FERC determination that when 2 Vernon's TRR is included in the ISO's rate, the ISO's rate is just and 3 reasonable; and 4 WHEREAS, a Notice of Public Hearing was posted on 5 November 23, 2005, notifying all interested parties that a hearing to 6 consider evidence to establish Vernon's new TRBAA was scheduled for 7 December 7, 2005, at approximately 5 p.m.; and 8 WHEREAS, the ISO has provided the Light & Power Department 9 comments to Vernon's Net FTR Revenue that was incorporated into the 10 TRBAA calculation; and 11 WHEREAS, consistent with the comments received by the ISO, 12 the Light & Power Department has prepared a Staff Report dated on or 13 about November 23, 2005, with exhibits, which determine the new TRBAA 14 consistent with the TO Tariff and support the TRBAA, along with TO 15 Tariff sheet changes to implement the new TRBAA effective January 1, 16 2006; and 17 WHEREAS, the Light & Power Department has recommended that 18 the TRBAAand Appendix I to the TO Tariff implementing the TRBAA be 19 approved; and 20 WHEREAS, the City Council has heard and considered all 21 evidence, both written and oral, presented in consideration of the 22 establishment of Vernon's new TRBAA and amended Appendix I to the TO 23 Tariff implementing the new TRBAA. 24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 25 CITY OF VERNON AS FOLLOWS: 26 SECTION 1: The City Council of the City of Vernon hereby 27 finds and determines that the recitals contained hereinabove are true 28 and correct. - 2 - j . 1 SECTION 2: The City Council of the City of Vernon further 2 finds that all persons have had the opportunity to be heard or to file 3 written comments to the proposed establishment of Vernon's new TRBAA 4 and amended Appendix I to the Vernon TO Tariff implementing the new 5 TRBAA, and after due consideration of any and all evidence submitted at 6 the public hearing determines that there are compelling reasons. to 7 justify the establishment of Vernon's new TRBAA and an amended Appendix 8 I to the TO Tariff implementing the new TRBAA, a copy of which is 9 attached hereto as Exhibit "B" and made a part hereof. 10 SECTION 3: The City Council of the City of Vernon hereby 11 approves the establishment of Vernon's new TRBAA and amended Appendix I 12 to the TO Tariff implementing the new TRBAA, to be effective January 1, 13 2006, described in the Light & Power Department Staff Report dated on 14 or about November 23, 2005, a copy of which is attached hereto as 15 Exhibit "A" and made a part hereof, pursuant to the TO Tariff. 16 SECTION 4: The City Council of the City of Vernon hereby 17 authorizes the. submittal of Vernon's TRBAA, the amended Appendix I to 18 the Vernon TO Tariff and supporting documentation, such as the Staff 19 Report and this City Council Resolution approving the new TRBAA, to the 20 FERC on behalf of the City of Vernon. 21 / / / ,22 / / / 23 / / / 24 / / / 25 / / / 26 / / / 27 / / / 28 / / / - 3 - 18 19 20 21 22 23 24 25 26 27 28 1 SECTION 5: The City Clerk of the City of Vernon shall 2 certify to the passage of this resolution, and thereupon and thereafter 3 the same shall be in full force and effect. 4 APPROVED AND ADOPTED this 7th day of December, 2005. 5 .~ 6 7 ~~~~t:-u~ · -- LE;ONIS C. MA URG, ayor 8 9 10 11 12 13 ATTEST: 11 BRUCE V. MALKENHORST, Acting City Clerk - JR. 14 15 16 17 - 4 - 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ,. 1 STATE OF CALIFORNIA 2 COUNTY OF LOS ANGELES 3 ss 4 5 6 I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being 7 Resolution No. 8913, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, December 7, 2005, and thereafter was duly signed by the 8 9 10 11 12 13 (SEAL) Mayor of the City of Vernon. z --> BRUCE V. MALKENHORST, JR. Acting City Clerk 14 - 5 - EXHIBIT A CITY OF VERNON LIGHT & POWER DEPARTMENT STAFF REPORT REGARDING THE ESTABLSHMENT OF A NEW TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR CALENDAR YEAR 2006 Pursuant to Section 5.2 of the Vernon Transmission Owner (''TO") Tariff, the City of Vernon updates its Transmission Revenue Balancing Account Adjustment ("TRBAA") annually. The TRBAA is a tariff mechanism designed to ensure that aU Transmission Revenue Credits ("TRCs") are flowed through to California Independent System Operator Corporation ("ISO") transmission tariff customers via annual update filings at FERC by Participating Transmission Owners ("PTO"). In Appendix F, Schedule 3, Section 6.1 (b), the California ISO Tariff describes the annual TRBAA calculation as "... a dollar amount based on projected Transmission Revenue Credits as adjusted for the true up of the prior year's difference between projected and actual credits." This staff report supports the establishment of a new TRBAA based on the requirements of the Vernon TO Tariff and the ISO Tariff. This report also contains recommendations relating to the approval of amendments to Appendix I of Vernon's TO Tariff. Further, the ISO has reviewed Vernon's . workpapers associated with calculating Net FTR Revenues.1 This Staff Report reflects comments received from the ISO SUMMARY Section 5.2 ofthe Vernon TO Tariff identifies the items to be reflected in the TRBAAand sets forth the procedure for revising the TRBA on an annual basis, as follows: I An "FTR" is a Firm Transmission Right. J Staff Report TRBAA 2006 Page 2 of 8 5.2 Transmission Revenue Balancing Account Adjustment ("TRBAA") The Participating TO shall maintain a Transmission Revenue Balancing Account ("TRBA") that will ensure that all Transmission Revenue Credits and the refunds, specified in Sections 6 and 8 of Appendix F, Schedule 3 of the ISO Tariff, flow through to transmission customers. The TRBAA shall be equal to: TRBAA = TRCF + TRCT + I. TRCF = The forecast of Transmission Revenue Credits for the following calendar year. TRCT = The balance representing the prior period difference between the projected Transmission Revenue Credits and the actual credits. I = The interest balance for the TRBA, which shall be calculated using the interest rate pursuant to Section 35.19(a) of FERC's regulations under the Federal Power Act (18 CFR Section 35.19(a)). Interest shall be calculated based on the average TRBA principal balance each month, compounded quarterly. Transmission Revenue Credits ("TRCs") are defined in Section 3.25 of the Vernon TO Tariff as follows: 3.25 Transmission Revenue Credit. Collectively, 1) the sum of: a) all revenues received by the Participating TO from the ISO for Wheeling service, plus b) Usage Charge revenues received by the Participating TO pursuant to Section 7.3.1.6(ii) of the ISO Tariff, plus c) Net FTR Revenue received by the Participating TO; minus 2) any charges Staff Report TRBAA 2006 Page 3 of8 attributable to the Participating TO (but not those attributable to the FTR Holder) pursuant to ISO Tariff 7.3.1.7. The TRBAA is based on the balance in the TRBA as of September 30 of the current year, and a forecast of the TRCs expected to be received in the following year. A summary of the elements of the Vernon TRBAA proposed to be effective January 1, 2006 is shown in Exhibit 1. It shows that the balance in the Vernon TRBA as of September 30,2005, which reflects services rendered through June 30, 2005, is a debit of $46,781, including. interest. TRCs are projected to be a credit of $225, 172. Taken together, these items sum up to a TRBAA to be effective for the twelve months starting January 1, 2006 of a credit, or negative, balance of $178,392. All of the Vernon transmission facilities that are reflected in Vernon's transmission rates and the TRBM are high voltage facilities. Therefore, there is no need to allocate TRCs, or other TRBM components, between high voltage and low voltage rates. CALCULATION OF THE NEW TRBAA The TRBM is equal the sum of: TRCF + TRCT + I. The balance in TRBA of a positive, debit of $46,781 as of September 30,2005 represents the sum of the TRCT and the .1 components. The TRCT Component of Vernon's TRBAA TRCT represents a balance that reflects the difference for the prior period between the projected TRCs and the actual credits. The prior period in this case is the 12 month period starting October 1, 2004 and ending September 30, 2005. A summary of the determination of the September 30, 2005 balance in the Vernon TRBA is shown in Exhibit 2. The TRCTcomponent reflects 1) the previously. projected 2004 TRCs for Vernon of $225,814, or $18,818 per month, for the months Staff Report TRBAA 2006 Page 4 of 8 October through December 2004, and 2) projected 2005 TRCs of $412,564, or $34,380 per month, for the months January through September 2005-both elements as reflected on Line No. 10 of Exhibit 2. Adjustments for actual payable TRCs reflecting 1) congestion refunds payable to the TO, i.e., Vernon, 2),high voltage wheeling revenue payable to the TO, and 3) Net FTR Revenue associated with Firm Transmission Rights ("FTRs") that Vernon receives pursuant to Section 9.4.3 of the ISO Tariff are reflected in Lines 11-15 of Exhibit 2 and produce the Under (Over) Collection figures for the monthly payable TRC balances reflected in Line 18 of Exhibit 2. These monthly balances are carried forward from month to month in Line 18 of Exhibit 2. Interest is calculated monthly (the I component) on the under (over) payment and is compounded quarterly into the monthly payable TRC balances, pursuant to Section 5.2 of the Vernon TO Tariff. The interest calculation for payable TRC balances is shown in Lines 20-24 of Exhibit 2. The calculation of the Net FTR Revenue associated with FTRs that Vernon receives pursuant to Section 9.4.3 of the ISO Tariff is discussed in more detail in the concluding section of this report. These payable TRC balances are then adjusted to reflect payment of TRC revenues owed to Vernon from the period prior to 2005. These payments would be reflected in Lines 33-45 of Exhibit 2, under "Prior Period TRC Payment Received" and subtracted from the payable TRC balances at the end of the year. However, . there are no Prior Period TRC Payments Received as reflected in Exhibit 7. The I (Interest) Component of Vernon's TRBAA As discussed above, the I component reflects interest on payable balances and on payments for prior year TRCs. As provided in Section 5.2 of Vernon's TO Tariff, monthly interest carrying costs are calculated using the 18 CFR 9 35.19(a) .. Staff Report TRBAA 2006 Page 5 of8 interest rates and calculation method. These interest rates, are published by the FERC, and reflect the prime rate values published in the Federal Reserve Bank's "Selected Interest Rates." The calculation of interest is reflected in Exhibit 2 and is included as an integral part ol the calculation of the TRBA balance on September 30, 2005. ~ It is not reflected as a separate line item in Exhibit 1. The TRCF Component of Vernon's TRBAA The TRCF component of Vernon's TRBAA stands for the forecast of TRGs for the following calendar year, in this case 2006. These forecast TRGs reflect projected wheeling revenues, projected usage/congestion revenues Vernon receives pursuant to Section 7.3.1.6(ii) of the ISO Tariff, and projected Net FTR Revenues for 2006. Wheeling revenues, which correspond to ISO Charge Type 384, are projected to be a credit of $109,083. Usage/congestion revenues Vernon receives pursuant to Section 7.3.1.6(ii) of the ISO Tariff are projected to be zero. Net FTR Revenues, which correspond to the hourly net of FTR revenues received under ISO Charge Types 204 and 254 and charges paid under ISO Charge Types 203, 253, 255, 256, are projected to be a credit of $116,089. These projections are shown in Exhibit 3. These projections are based on the accruals for services provided during the twelve-month period ending June 30, 2005, which are reflected in the ISO's invoices to Vernon through September 30, 2005. A summary of the monthly accruals to these Charge Types for the twelve months ending September 30, 2005 is shown in Exhibit 4. The determination of Net FTR Revenues is pursuant to the December 23, 2003 settlement agreement among the City of Vernon, California ('Vernon"), the Staff Report TRBAA 2006 Page 6 of8 ISO, and others in FERC Docket No. EL02-103. The settlement requires Vernon to credit hourly. Net FTR Revenues from Section 9.4.3 FTRs that Vernon receives during the Transition Period against Vernon's TRBA, for the period beginning July 1, 2002. For the prior period, all revenues associated with Vernon's Section 9.4.3 FTRs were properly excluded from Vernon's TRBAA, as expressly then provided in Vernon's TO Tariff, and as provided in Section 1.1 of the Docket No. EL02-103 settlement. Accordingly, Vernon's Net FTR Revenue is calculated as follows: Revenue received by a PTO from the sale, auction, transfer of the FTRs provided to it pursuant to Section 9.4.3; plus For each hour, the greater of zero or the hourly net quantity determined as follows: a) The usage charge revenue received by the PTO associated with its Section 9.4.3 FTRs (that portion of Charge Types 204 and 254 which is associated with Vernon's Section 9.4.3 FTRs); Minus, b) Usage charges that are: i) incurred by the Scheduling Coordinator ("SC") for the PTO under ISO Tariff 7.3.1.4, ii) associated with the PTO's Section 9.4.3 FTRs, and iii) incurred by the PTO for its (Le., Vernon's) energy transactions, but not incurred as a result of the use of the transmission by a third-party. Charges that are deducted under this sub-section are: hour ahead inter-zonal congestion debit due PTO, that part of Charge Type 255 which is applicable to FTR Holders (ISO Tariff Section 7.3.1.7(1)), day ahead inter-zonal Congestion Charge due SC (Charge Type 203) (ISOTariff Section 7.3.1.4), and hour ahead inter-zonal congestion charge due.SC (Charge Type 253)(IS0 Tariff Section 7.3.1.4), up to Vernon's Section 9.4.3 FTR entitlement on the path; Minus, c) The charges paid by the PTO pursuant to ISO Tariff Section 7.3.1.7, to the extent such charges are paid by the SC of the PTO on congested inter-zonal Staff Report TRBAA 2006 Page 7 of8 interfaces that are associated with the Section 9.4.3 FTRs provided to the PTO. The Charge Type that is deducted under this paragraph is hour ahead inter-zonal congestion debit to SC (Charge Type 256) (ISO Tariff Section 7.3.1.7 (2)), up to Vernon's Section 9.4.3 FTR entitlement on the path. Exhibit '5 summarizes this Net FTR Revenue calculation for invoices received by Vernon during the twelve-month period ending September 30, 2005 by revenue type and Charge Type classifications. Exhibit 5 shows $169,114 of revenues attributable to ISO Charge Types 204 and 2,54 and $53,025 of hourly net charges attributable to ISO Charge Types 203, 253, 255, and 256. (The underlying hourly qross charges attributable to ISO Charge Types 203, 253, 255, and 256 are shown as $103,829.) Exhibit 6 breaks the total FTR revenues and total charges shown in Exhibit 5 down into monthly amounts by ISO Charge Type. VERNON BASE TRR The City Council, in response to the February 17, 2004 FERC order in Docket No. ELOO-105 on remand from the D.C. Circuit Court of Appeals, through Resolution 8430, dated April 26, 2004, amended its Resolution 7659, dated November 7,2000, to establish a base TRR of $12,253,797 to replace the $10,216,178 for all purposes, effective January 1, 2001. This replacement base TRR is currently subject to a hearing process in Docket No. ELOO-105 for FERC determination that when Vernon's TRR is included in the ISO's rate the ISO's rate is just and reasonable. The TRBAA filing for 2005 should be independent of the City Council's April 26, 2004 actions on the base TRR and independent ofthe matters subject to ongoing litigation in Docket No. ELOO-105. Nevertheless, because the revised TRBAA appears on the same tariff sheet, staff recommends keeping the footnote to explain that the City Council's Apri126, 2004 actions govern the base TRR. Staff Report TRBAA 2006 Page 8 of8 RECOMMENDATIONS 1. Approve the newly calculated TRBAA of a negative $178,392. 2. Approve replacing the existing TRBAA of negative $412,564 with the new TRBAA for 2006 of a negative $178,392. 3. Approve the attached revised Appendix I of Vernon's TO Tariff reflecting the TRBAA of negative $178,392. . 4. Approve the submission of Vernon's TRBAA, and supporting documentation, such as this Staff Report and the City Council Resolution approving the new TRBAA, to the FERC. Staff Report TRBAA 2006 Exhibit 1 A B C D E F G H I 1 2 3 CITY OF VERNON 4 TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT (TRBM) 5 CALENDAR YEAR 2006 6 . - 7 DESCRIPTION TOTAL 8 9 Balance in TRBA on September 30, 2005 $46,781 10 including interest . I 11 12 Forecast Transmission Revenue Credits ($225,172) 13 14 TRBM ($178,392) 15 16 17 18 Source: 19 Line 9 Exhibit 2, Column N, Line No.53. 20 Line 12 Exhibit 3, Column E, Line No.23. 21 22 23 24 25 26 27 TRBAA-063 11/2312005 I ~ .. .. .. . l:: .."'- -0 CO -0... .... m H! m jll:l; ~~ 8~ '" 1 g H~ ~ '" i!, !l. m iii~ i 0 2 .. Hi! !~ 3- ... li ~"'~ ! :e ,'" :e ~s m~ gj !l ~ ...Slil i ~ .. ...-gj :e 8- ~~ II ~~ 2_ 0 ~~ .. ~ . il. . ~ i'; '" <11 ~I ~~ ... ~ > l- i! ~o ~i ~ . is i~ i <1 <1 < & z ~" 0 '" : ~ ~ ;II ~ ... ~ '" : '" '" ... ; ~ ~ i 0 ;r ~f " ;;; ~ ti .. 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A I B I C I D E 1 CITY OF VERNON 2 FORECAST TRANSMISSION CREDITS 3 for Calendar Year 2006 TRBM 4 5 6 MONTH Wheeling NET FTR Total 7 8 January-05 ($9.090.27) ($9.674.11 ) ($18,764.37) 9 February-05 ($9.090.27) ($9.674.11) ($18,764.37) 10 March-05 ($9,090.27) ($9.674.11) ($18.764.37) 11 April-05 ($9,090.27) ($9,674.11) ($18,764.37) 12 May-05 ($9,090.27) ($9.674.11) ($18,764.37) 13 June-05 ($9,()90.27) ($9,674.11) ($18,764.37) 14 July-05 ($9,090.27) ($9,674.11) ($18,764.37) 15 August-05 ($9,090.27) ($9,674.11) ($18,764.37) 16 September-05 ($9,090.27) ($9.674.11 ) ($18,764.37) 17 October-05 ($9,090.27) ($9,674.11) ($18,764.37) 18 November-05 ($9,090.27) ($9,674.11) ($18.764.37) 19 December-05 ($9.090.27) ($9.674.11) ($18.764.37) 20 21 22 23 Total ($109,083.18) ($116,089.29) ($225,172.47) 24 25 '" TRBM-063 Staff Report TRBAA2006 Exhibit 3 11/23/2005 A BCD Vernon Historical Transmission Credits for Calendar Year 2006 TRBAA 1 2 3 4 5 6 Month 7 (Cash Basis) 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (Cash Basis) 25 October-04 26 November-04 27 December-04 28 January-05 29 February-05 30 March-05 31 April-05 32 May-05 33 June-05 34 July-05 35 August-05 36 September-05 37 38 39 40 Net FTR: SUM(CT 204,CT 254,CT 203, CT 253,CT255, CT 256) 41 ( Sum of Hourly Net FTR Revenue that is greater than zero) 42 (Cash Basis) ISO Numbers 43 October-04 ($38,889.58) 44 November-04 ($12,561.60) 45 December-04 ($24,462.27) 46 January-05 ($7,697.29) 47 February-05 ($10,529.80) 48 March-05 ($7,943.93) 49 April-05 ($521.63) 50 May-05 ($248.15) 51 June-05 ($1,217.96) 52 July-05 ($551.93) 53 August-05 ($7,759.82) 54 September-05 ($3.705.33) 55 56 57 October -04 November-04 December-04 January-05 . February-05 March-05 April-05 May-05 June-05 July-05 August-05 September-05 Wheeling Revenues ISO INVOICE ISO INVOICE CT 384 CT 3384 Final ($14,204.00) ($16.193.10) ($8,864.23) ($3,055.51) ($3,406.46) ($5,209.35) ($4,219.72) ($8,761.70) ($10,804.53) ($4,654.06) ($10.499.60) ($20,477.51) PTO Charges! (Credits) CT 255 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 TRBAA-063 ($11608929) m.QQ $1,266.59 CT 204 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 iQ.J1Q E Total ($12,937.41) ($16,193.10) ($8,864.23) ($3,055.51) ($3,406.46) ($5,209.35) ($4,219.72) ($8,761.70) ($10,804.53) . ($4,654.06) ($10,499.60) ($20.477.51 ) ($10908318) CT 254 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 1Q.QQ staff Report TRBM 2006 Exhibit 4 F 11/2312005 1 2 3 4 5 TRBAA-063 A . Charges CT 203 CT 253 CT 255 CT 256 B C D FTR Break-out for Calendar Year 2006 TRBAA ~ I Total Amount - ($169,113.94) $67,583.11 $647.00 $1,089.36 $34.509.23 $103,828.70 ($65,285.24) , --. -t---- Net figures were adopted from ISO calculation. Vernon's own worksheet reflects ($116,000.61). NetFTR Amount (atter nourly Netting)1 ($169,113.94) $53,024.65 ($116,089.29) ... Staff Report TRBAA 2006 Exhibit 5 E F 6 Charge Type 7 8 Revenues 9 CT 204 and CT 254 10 11 12 13 14 15 16 17 18 19 20 21 1. 22 23 24 25 -- ------ --- -~ ---~ -- -- -- 11/23/2005 TRBAA-063 , . A B C D E F G FTR Monthly Detail (Before Hourly Netting) for Calendar Year 2006 TRBM Month CT 203 CT 204 CT 254 CT 253 CT 255 CT 256 Jul-04 . $0 ($32,353) ($5,666) $0 $75 $2,637 Aug-04 $9 ($7,818) ($4,837) $0 $84 $0 Sep-04 $712 ($12,073) ($13,394) $4 $293 $82 Oct-04 $7,821 ($12,201 ) ($667) $43 $0 $7 Nov-04 $795 ($11,086) ($240) $0 $0 $750 Dec-04 $1,168 ($7,418) ($1,703) $0 $9 $185 Jan-05 $4,330 ($2,249) ($438) $0 $0 $0 Feb-05 $24 ($161) ($119) $600 $1 $203 Mar-05 $405 ($247) ($1,174) $0 $0 $0 Apr-05 $1,885 ($899) ($552) $0 $0 $7,208 May-05 $31,014 ($38,188) ($606) $0 $627 $22,751 Jun-05 $19,421 ($14,045) ($982) $0 $0 $685 Total $67.583 ($138.737) ($30 377) ~ $1 089 $34 509 Staff Report TRBM 2006 Exhibit 6 11/23/2005 Iii I l:lll li.... ;~ 11 8888 888 888 ggg 888 8888 8888 8 8 OQ~~ ! liiliiliilii Ulii ggg ggg liiU liiliiliilii liiliiliilii g g ~g~~ :> J 8888 888 8S8 888 888 8888 8888 0 0 ~~~~. 0 0 gaga aga ggg gag gaa ggalii liialiilii a lii 2~2~ I 8888 888 888 888 888 88888 88888 8 8 8888 liiaU liigg gglii aga gcid g$sas aUalii a 0 gg~g MM M j 8888 8gg 888 888 888 8888 8888 8 8 8:;;~~ gggg liiglii goo gliig gliig gaga good g lii aaa M" MM" 0:: i 888 888 888 888 888 888 888 8 0 88~~. 0 gag gaa ocio ggg ggg ggg goo g g ~~a ."". 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I fi i i N N 188€i€i !ag~:e Ii ii I -- ~uf ~ ~ l!? ! N.B ~M__ ~_M_ i~~~l:! i"'~:::&l ...ti!jU ...Ui:i! r-~~ ~;~g~ i&~{ I&~f ~!3~ ~!H i g ~ i;l ~ ~ . ~ ~ ~ l I ! ~ ;1 ... lii i I ~ I } 1 1 1 i 1 i .l! h:;;L1~ ~iaii i gg ~ ~ l&&'i ~Hi '" . I il ~ i } ~ .;: .,. , ~ :II f ___: =:Bo~g !~li~:!! 5;-::~ Ii lH~ inf ~H~ ~ ~ ~ ~ :II .. ... . ~ I .l! ~---- i:~~! ...ctg~= g~-55 l.ti- !!;b~ ~ ~ g ;5;Z;& .... ... j I I 0:: ~ ~ 1 II ;! ~ I } i I!' , - . . Transmission Owner Tariff (coot.) APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $10,216,178.1 The TRBAA. is a negative $178,392 for the 12-month period effective January 1,.2005._ All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High Voltage Facilities as defined by the ISO Tariff. The TRBAA will be recalculated annually consistent with the ISO Tariff, approved by the Vernon City Council, and provided to the ISO. IHowever, the City of Vernon, in response to the February 17,2004 Federal Energy Regulatory Commission ("FERC") order in Docket No. ELOO-105 on remand from the D.C. Circuit Court of Appeals, through Resolution 8430, dated Apri126, 2004, amended its Resolution 7659, dated November 7, 2000, to establish a base TRR of$12,253,797 to replace the $10,216,178 for all purposes, effective January 1,2001. This replacement base TRR is currently subject to a hearing process in Docket No. ELOO-105 for FERC determination that when Vernon's TRR is included in the CAISO's rate, the CAlSO's rate is just and reasonable. Authorized by City ofVemon Ordinance No. 940 Resolution No. -Effective: January I, 2006 Fifth Revised Sheet No. 22 Superseding Fourth Revised Sheet No. 22 I. Issued on: December_,2oo5 .~ ~ ) ... .... . Transmission Owner Tariff (cont.) APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $10,216,178" The TRBAA"is a negative $178,392 for the 12-month period effective January 1,2005._ All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High Voltage Facilities as defined by the ISO Tariff. The TRBAA will be recalculated annually consistent with the ISO Tariff, approved by the Vernon City Council, and provided to the ISO. IHowever, the City of Vernon, in response to the February 17, 2004 Federal Energy Regulatory COnmllssion ("FERC") order in Docket No. ELOO-I05 on remand from the D.C. Circuit Court of Appeals, through Resolution 8430, dated April 26, 2004, amended its Resolution 7659, dated November 7, 2000, to . establish a base TRR of$12,253,797 to replace the $10,216,178 for all purposes, effective January 1,2001. This replacement base TRR is currently subject to a hearing process in Docket No. ELOO-I05 for FERC determination that when Vernon's TRR is included in the CAISO's rate, the CAISO's rate is just and reasonable. Authorized by City of V emon Ordinance No. ~ Resolution No. -Effective: January 1,2006 Fifth Revised Sheet No. 22 Superseding Fourth Revised Sheet No. 22 I. Issued on: December_.2oo5 SUPPORTING DOCUMENTS NOTICE OF PUBLIC HEARXNG The City of Vernon will conduct a Public Hearing to which you may attend. PLACE: Vernon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 DATE AND TIME: Wednesday, December 7, 2005, at 5:00 p~m., or as soon thereafter as the matter may be heard PURPOSE: To consider evidence to establish Vernon's new Transmission Revenue Balancing Account Adjustment for its high voltage (over 200 kV) transmission facilities and entitlements (all located outside the City) pursuant to Vernon's Transmission Owner Tariff Any interested person may attend and address the City Council at the time of the hearing, or may present written comments prior to the hearing. If you challenge the approval of the establishment. of Vernon's new Transmission Revenue Balancing Account Adjustment or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. Information may be obtained by contacting the office of the City Clerk at the above address. The hearing may be continued or adjourned to a stated time and place without further notice of a public hearing. Dated: November 23, 2005 k~ Bruce\V. Malkenhorst, Jr. Acting City Clerk AFFIDAVIT OF POSTING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) ss CITY OF VERNON ) I, Manuela Giron, Deputy City Clerk, of the City of Vernon do hereby certify that on the 23rd day of November 2005, I did post three (3) copies of: Notice of Pub1ic Bearinq - to consider evidence to establish the Vernon's new Transmission Revenue Balancing Account Adjustment for its high voltage (over 200 kV transmission facilities and entitlements (all located outside the City) pursuant to the Vernon's Transmission Owner Tariff. On each of the following places, to wit: on the bulletin board outside the main entrance to the City Hall of the City of Vernon located at 4305 Santa Fe Avenue; at the northwest corner of 38th Street and Santa Fe Avenue; the northeast corner of Leonis Blvd., and Pacific Blvd., all in said City, there being no newspaper of general circulation printed and publish in the City of Vernon. /l1~1J /()S- Date: Manuela Giron Deputy City Clerk State of California ) )ss County of Los Angels) On \':2h\~s before me, b'n~O"- \....~"'~e."'.~~'-\~\"c.. personally appeared Manuela Giron personally known to me (or known to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal ~e~ CERTIFICATE STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES) I, Bruce V. Malkenhorst, .Jr., Acting City Clerk of the City of Vernon, Co~nty of Los Angeles, State of California, hereby certify that the attached is a full and complete copy of: Resolution No. 8913 - A Resolution of the City Council of the City of Vernon Establishing the Transmission Revenue Balancing Account Adjustment in Accordance with Vernon's Transmission Owner Tariff and Providing for Tariff Sheet Changes to Implement the Adjustment IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of the City of Vernon, County of Los Angeles, State of California, on this 8th day of December, 2005. SEAL: /7 I~ Bruce V. Malkenhorst, Jr. Acting City Clerk