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Resolution No. 91140 1 2 3 4 5 M 7 8 $,I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 PILI! 25 26 27 28 RESOLUTION NO. 9114 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN INTERCONNECTION FACILITIES STUDY AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION REGARDING THE VERNON POWER PLANT WHEREAS, the City of Vernon (the "City") owns and operates its own electric system which services the City's constituents; and WHEREAS, the City is a Participating Transmission Owner with the California Independent System Operator Corporation ("ISO"); and WHEREAS, the City is in the process of developing a natural gas -fired combined cycle power plant located within City limits officially named the Vernon Power Plant (the "VPP Project") for the purpose of installing additional generating capacity that will yield an efficient, cost-effective, and reliable source of electric generation to the City; and WHEREAS, the Vernon Power Plant will be interconnected to Southern California Edison Company's ("SCE") Laguna Bell Substation 230, kV bus via a double circuit 230 kV transmission line; and WHEREAS, on October 12, 2005, the City Council of the City of Vernon adopted Resolution No. 8873 approving an Interconnection System Impact Study with SCE to assess the impact of interconnecting the VPP Project to the ISO Controlled Grid at an output of 610 mW (net); and WHEREAS, the City desires to interconnect an additional 304 mW to the proposed 610 mW Vernon Power Plant, resulting in a total maximum net output of 914 mW; and WHEREAS, the VPP Project is considered a Large Generating Facility and in accordance with the Cal -ISO Large Generator 1 a r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Interconnection Procedure, the ISO has completed an Interconnection System Impact Study to assess the impact of the VPP Project; and WHEREAS, the City's Light & Power Department has determined I1that an Interconnection Facilities Study needs to be performed to specify and estimate the cost of the equipment, engineering, procurement and construction work needed on the City's electric system to implement the conclusions of the Interconnection System Impact Study to physically and electrically connect the Large Generating Facility to the ISO Controlled Grid; and WHEREAS, the City desires to engage the services of the ISO to perform the necessary study (i) to identify the City's interconnection facilities, distribution upgrades and network upgrades necessary to interconnect the Vernon Power Plant; (ii) to estimate the cost of such required facilities and upgrades; (iii) to estimate the time to complete the required facilities and upgrades; (iv) to evaluate the impacts to the SCE Distribution System; (v) to evaluate the feasibility and associated cost with interconnecting the 230 kV double circuit gen-tie line at the northwest side of Laguna Bell Substation, in accordance with the terms and conditions of an Interconnection Facilities Study (the "Agreement"); and WHEREAS, in order to perform the study, the ISO is requiring the City to pay a deposit for costs in an estimated amount of $100,000.00; and WHEREAS, the Director of Light & Power has recommended that the Agreement with the ISO be approved and a check issued for the estimated study costs; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of - 2 - 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into an agreement with the ISO. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Interconnection Facilities Study Agreement with the ISO, a copy of which is attached hereto as Exhibit A and incorporated by reference, and approves the payment of a deposit for costs in the sum of $100,000.00. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor to execute said Agreement for, and on behalf of, the City of Vernon and the Acting City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby authorizes and empowers the Acting City Clerk to execute such other agreements and documents and to take such actions as may be necessary or convenient to carry out the City's obligations hereunder and to effect the purposes of the Agreement and the transactions therein authorized. SECTION 5: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send one fully executed Agreement, together with the deposit of $100,000.00, to the ISO. - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 6: The Acting City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 16th day of August, 2006. ATTEST: BRUCE VMMALKENHORST, JR. Acting City Clerk �LEqONIES C. M LBURG, Mayor - 4 - E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9114, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, August 16, 2006, and thereafter was duly signed by the Mayor of the City of Vernon. BRUCE MALKENHORST, JR. Acting City Clerk (SEAL) - 5 - s INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT INTERCONNECTION FACILITIES STUDY AGREEMENT THIS AGREEMENT is made and entered into this day of , 20 by and between City of Vernon, a municipal corporation organized and existing under the laws of the State of California, ("Interconnection Customer,") and the California Independent System Operator Corporation, a California nonprofit public benefit corporation. existing under the laws of the State of California, ("ISO"). The Interconnection Customer and the ISO each may be referred to as a "Party," or collectively as the "Parties." RECITALS WHEREAS, the Interconnection Customer is proposing to develop a Large Generating Facility or generating capacity addition to an existing Generating Facility consistent with the Interconnection Request submitted by the Interconnection Customer dated September 9, '2005; and WHEREAS, the Interconnection Customer desires to interconnect the Large Generating Facility with the ISO Controlled Grid; WHEREAS, the ISO has completed an Interconnection System Impact Study (the "System Impact Study") and provided the results of. said study to the Interconnection Customer; and WHEREAS, the Interconnection Customer has requested the ISO to conduct or cause to be performed an Interconnection Facilities Study to specify and estimate the cost of the equipment, engineering, procurement and construction work needed on the Participating TO's electric system to implement the conclusions of the Interconnection System Impact Study in accordance with Good Utility Practice to physically and electrically connect the Large Generating Facility to the ISO Controlled Grid. NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein the Parties agreed as follows: 1.0 When used in this Agreement, with initial capitalization, the terms specified shall have the meanings indicated in the ISO's FERC-approved Standard Large Generation Interconnection Procedures ("LGIP") or the Master Definitions Supplement, Appendix A to the ISO Tariff, as applicable. 2.0 The Interconnection Customer elects and the ISO shall conduct or cause to be performed an Interconnection Facilities Study consistent with the LGIP in accordance with the ISO Tariff. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT 3.0 The scope of the Interconnection Facilities Study shall be subject to the assumptions set forth in Attachment A and the data provided in Attachment B to this Agreement. 4.0 The Interconnection Facilities Study report (i) shall provide a description, estimated cost, including, if applicable, the cost of remedial measures that address the financial impacts, if any, on Local Furnishing Bonds, of (consistent with Attachment A), and schedule for required facilities or for effecting remedial measures that address the financial impacts, if any, on Local Furnishing Bonds within each Participating TO's electric system to interconnect the Large Generating Facility to the ISO Controlled Grid and (ii) shall address the short circuit, instability, and power flow issues identified in the Interconnection System Impact Study. 5.0 The Interconnection Customer shall provide a deposit of the greater of $100,000 or the Interconnection Customer's portion of the estimated monthly cost for the performance of the Interconnection Facilities Study. The time for completion of the Interconnection Facilities Study is specified in Attachment A. For studies where the estimated cost exceed $100,000, the ISO may invoice Interconnection Customer on a monthly basis for the work to be conducted on the Interconnection Facilities Study for the remaining balance of the estimated Interconnection Facilities Study cost. The Interconnection Customer shall pay invoiced amounts within thirty (30) Calendar Days of receipt of invoice. The ISO shall continue to hold the amounts on deposit until settlement of the final in Following the issuance of the Interconnection Facilities Study, the ISO shall charge and the Interconnection Customer shall pay the actual costs of the Interconnection Facilities Study, inclusive of any re -studies and amendments to the Interconnection Facilities Study, pursuant to Section 9 of this Agreement. Any difference between the deposit made toward the Interconnection Facilities Study and the actual cost of the study, inclusive of any re -studies and amendments thereto, shall be paid by or refunded to the Interconnection Customer, as appropriate in accordance with Section 13.3 of the LGIP. 6.0 The Interconnection Facilities Study will be based upon the results of the Interconnection System Impact Study and the technical information provided by the Interconnection Customer in the Interconnection Request, subject to any modifications in accordance with Section 4.4 of the LGIP. The ISO reserves the right to request additional technical information from the Interconnection Customer as may reasonably become necessary consistent with Good Utility Practice during the course of the Interconnection Facilities Study. F INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT If the Interconnection Customer modifies its Interconnection Request or the technical information provided therein is modified, the time to complete the Interconnection Facilities Study may be extended. 7.0 Pursuant to Section 3.7 of the LGIP, the ISO will coordinate the conduct of any studies required to determine the impact of the Interconnection Request on Affected Systems. The ISO may provide a copy of the Interconnection Facilities Study results to an Affected System Operator and the Western Electricity Coordinating Council Requests for review and input from Affected System Operators or the Western Electricity Coordinating Council may arrive at any time prior to interconnection, and a revision of the Interconnection Facilities Study or re -study may be required in such event. 8.0 Substantial portions of technical data and assumptions used to perform the Interconnection Facilities Study, such as system conditions, existing and planned generation, and unit modeling, may change after the ISO provides the Interconnection Facilities Study results to the Interconnection Customer. Study results will reflect available data at the time the ISO provides the Interconnection Facilities Study to the Interconnection Customer. The ISO shall not be responsible for any additional costs, including, without limitation, costs of new or additional facilities, system upgrades, or schedule changes, that may be incurred by the Interconnection Customer as a result of changes in such data and assumptions. 9.0 In the event that a re -study or amendment of the Interconnection Facilities Study is required, the ISO shall provide notification of the need for such re -study or amendment, and the Interconnection Customer shall provide direction as to whether to proceed with the re -study or amendment and any associated deposit payment pursuant to Section 8.5 or Section 12.2.4 of the LGIP, as applicable. 10.0 The ISO shall maintain records and accounts of all costs incurred in performing the Interconnection Facilities Study, inclusive of any re -studies or amendments thereto, in sufficient detail to allow verification of all costs incurred, including associated overhead. The Interconnection Customer shall have the right, upon reasonable notice, within a reasonable time at the ISO offices and at its own expense, to audit the ISO's records as necessary and as appropriate in order to verify costs incurred by the ISO. Any audit requested by the Interconnection Customer shall be completed, and written notice of any audit dispute provided to the ISO within one hundred eighty (180) Calendar Days following receipt by the Interconnection Customer of the ISO's notification of the final costs of the 3 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Interconnection Facilities Study, inclusive of any re -study or amendment thereto. 11.0 In accordance with Section 3.8 of the LGIP, the Interconnection Customer may withdraw its Interconnection Request at any time by written notice to the ISO. Upon receipt of such notice, this Agreement shall terminate. 12.0 Pursuant to Section 8.1 of the LGIP, this Agreement shall become effective upon the date the fully executed Agreement and deposit specified in Section 6 of this Agreement are received by the ISO. If the ISO does not receive the fully executed Agreement and payment pursuant to Section 8.1 of the LGIP, then the Interconnection Request will be deemed withdrawn upon the Interconnection Customer's receipt of written notice by the ISO pursuant to Section 3.8 of the LGIP. 13.0 Miscellaneous. 13.1 Dispute Resolution. Any dispute, or assertion of a claim, arising out of or in connection with this Interconnection Facilities Study Agreement, shall be resolved in accordance with Section 13.5 of the LGIP. 13.2 Confidentiality. Confidential Information shall be treated in accordance with Section 13.1 of the LGIP. 13.3 Binding Effect. This Interconnection Facilities Study Agreement and the rights and obligations hereof, shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties hereto. 13.4 Conflicts. In the event of a conflict between the body of this Interconnection Facilities Study Agreement and any attachment, appendices or exhibits hereto, the terms and provisions of the body of this Interconnection Facilities Study Agreement shall prevail and be deemed the final intent of the Parties. 13.5 Rules of Interpretation. This Interconnection Facilities Study Agreement, unless a clear contrary intention appears, shall be construed and interpreted as follows: (1) the singular number includes the plural number and vice versa; (2) reference to any person includes such person's successors and assigns but, in the case of a Party, only if such successors and assigns are permitted by this Interconnection Facilities Study Agreement, and reference to a person in a particular capacity excludes such person in any other capacity or individually; (3) reference to any agreement (including this Interconnection Facilities Study Agreement), document, instrument or tariff means such agreement, document, instrument, or tariff as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof; CI INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT (4) reference to any applicable laws and regulations means such applicable laws and regulations as amended, modified, codified, or reenacted, in whole or in part, and in effect from time to time, including, if applicable, rules and regulations promulgated thereunder; (5) unless expressly stated otherwise, reference to any Article, Section or Appendix means such Article or Section of this Interconnection Facilities Study Agreement or such Appendix to this Interconnection Facilities Study Agreement, or such Section to the LGIP or such Appendix to the LGIP, as the case may be; (6) "hereunder", "hereof", "herein", "hereto" and words of similar import shall be deemed references to this Interconnection Facilities Study Agreement as a whole and not to any particular Article, Section, or other provision hereof or thereof; (7) "including" (and with correlative meaning "include") means including without limiting the generality of any description preceding such term; and (8) relative to the determination of any period of time, "from" means "from and including", "to" means "to but excluding" and "through" means "through and including". 13.6 Entire Agreement. This Interconnection Facilities Study Agreement, including all Appendices and Schedules attached hereto, constitutes the entire agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Interconnection Facilities Study Agreement. There are no other agreements, representations, warranties, or covenants which constitute any part of the consideration for, or any condition to, any Party's compliance with its obligations under this Interconnection Facilities Study Agreement. 13.7 No Third Party Beneficiaries. This Interconnection Facilities Study Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, their successors in interest and, where permitted, their assigns. 13.8 Waiver. The failure of a Party to this Interconnection Facilities Study Agreement to insist, on any occasion, upon strict performance of any provision of this Interconnection Facilities Study Agreement will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. Any waiver at any time by either Party of its rights with respect to this Interconnection Facilities Study Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, duty of this Interconnection Facilities Study Agreement. Termination or default of this Interconnection Facilities Study 5 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Agreement for any reason by the Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Participating TO or ISO. Any waiver of this Interconnection Facilities Study Agreement shall, if requested, be provided in writing. Any waivers at any time by any Party of its rights with respect to any default under this Interconnection Facilities Study Agreement, or with respect to any other matter arising in connection with this Interconnection Facilities Study Agreement, shall not constitute or be deemed a waiver with respect to any subsequent default or other matter arising in connection with this Interconnection Facilities Study Agreement. Any delay, short of the statutory period of limitations, in asserting or enforcing any right under this Interconnection Facilities Study Agreement shall not. constitute or be deemed a waiver of such right. 13.9 Headings. The descriptive headings of the various Articles and Sections of this Interconnection Facilities Study Agreement have been inserted for convenience of reference only and are of no significance in the interpretation or construction of this Interconnection Facilities Study Agreement. 13.10 Multiple Counterparts. This Interconnection Facilities Study Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument. 13.11 Amendment. The Parties may by mutual agreement amend this Interconnection Facilities Study Agreement by a written instrument duly executed by both of the Parties. 13.12 Modification by the Parties. The Parties may by mutual agreement amend the Appendices to this Interconnection Facilities Study Agreement by a written instrument duly executed by both of the Parties. Such amendment shall become effective and a part of this Interconnection Facilities Study Agreement upon satisfaction of all applicable laws and regulations. 13.13 Reservation of Rights. The ISO shall have the right to make a unilateral filing with FERC to modify this Interconnection Facilities Study Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule or regulation under section 205 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder, and Interconnection Customer shall have the right to make a unilateral filing with FERC to modify this Interconnection Facilities Study Agreement pursuant to section 206 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder; provided that each Party shall have the right to protest any such filing by 0 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT another Party and to participate fully in any proceeding before FERC in which such modifications may be considered. Nothing in this Interconnection Facilities Study Agreement shall limit the rights of the Parties or of FERC under sections 205 or 206 of the Federal Power Act and FERC's rules and regulations thereunder, except to the extent that the Parties otherwise mutually agree as provided herein. 13.14 No Partnership. This Interconnection Facilities Study Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon any Party. No Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, another Party. 13.15 Assignment. This Interconnection Facilities Study Agreement may be assigned by a Party only with the written consent of the other Party; provided that a Party may assign this Interconnection Facilities Study Agreement without the consent of the other Party to any Affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Interconnection Facilities Study Agreement; and provided further that the Interconnection Customer shall have the right to assign this Interconnection Facilities Study Agreement, without the consent of the other Party, for collateral security purposes to aid in providing financing for the Large Generating Unit, provided that the Interconnection Customer will require any secured party, trustee or mortgagee to notify the other Party of any such assignment.. Any financing arrangement entered into by the Interconnection Customer pursuant to this Article will provide that prior to or upon the exercise of the secured party's, trustee's or mortgagee's assignment rights pursuant to said arrangement, the secured creditor, the trustee or mortgagee will notify the other Party of the date and particulars of any such exercise of assignment right(s). Any attempted assignment that violates this Article is void and ineffective. Any assignment under this Interconnection Facilities Study Agreement shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. 7 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT IN WITNESS WHEREOF, the Parties agenve caused ts on thethis day anreement to be d d year first above executed by their duly authorized officers written. California Independent System Operator Corporation By: ? y Title: V'I « PreS d Date: 7% l you b City of Vernon By: Title: Date: INTERCONNECTION FACILITIES STUDY AGREEMENT Attachment A Interconnection Facilities Study Agreement INTERCONNECTION CUSTOMER SCHEDULE ELECTION FOR CONDUCTING THE INTERCONNECTION FACILITIES STUDY The ISO shall use Reasonable Efforts to complete the study and issue a draft Interconnection Facilities Study report to the Interconnection Customer. Prior to issuing draft study results to the Interconnection Customer, the Participating TO and ISO shall share results for review and incorporate comments within the following number of days after of receipt of an executed copy of this Interconnection Facilities Study Agreement: one hundred twenty (120) Calendar Days with no more than a +/- 20 percent cost estimate contained in the report, or two hundred ten (210) Calendar Days with no more than a +/- 10 percent cost estimate contained in the report. 9 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Attachment B Interconnection Facilities Study Agreement DATA FORM TO BE PROVIDED BY THE INTERCONNECTION CUSTOMER WITH THE INTERCONNECTION FACILITIES STUDY AGREEMENT Provide two copies of this completed form and other required plans and diagrams in accordance with Section 8.1 of the LGIP. Provide location plan and one -line diagram of the plant and station facilities. For staged projects, please indicate future generation, transmission circuits, etc. One set of metering is required for each generation connection to the new bus or existing ISO Controlled Grid station. Number of generation connections: On the one line indicate the generation capacity attached at each metering location. (Maximum load on CT/PT) On the one line indicate the location of auxiliary power. (Minimum load on CT/PT) Will an alternate source of auxiliary power be available during CT/PT maintenance? Yes No Will a transfer bus on the generation side of the metering require that each meter set be designed for the total plant generation? Yes No (Please indicate on one line). What type of control system or PLC will be located at the Interconnection Customer's Large Generating Facility? What protocol does the control system or PLC use? Please provide a 7.5-minute quadrangle of the site. Sketch the plant, station, transmission line, and property line. 10 r INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Physical dimensions of the proposed interconnection station: Bus length from generation to interconnection station: Line length from interconnection station to the Participating TO's transmission line. Tower number observed in the field. (Painted on tower leg)* Number of third party easements required for transmission lines*: * To be completed in coordination with the Participating TO or ISO. Is the Large Generating Facility in the Participating TO's service area? Yes No Local service provider for auziliary and other power: Please provide proposed schedule dates: Begin Construction Date: Generator step-up transformer Date: receives back feed power Generation Testing Commercial Operation Level of Deliverability: Choose one of the following: Deliverability with no Network Upgrades 100% Deliverability Date: Date: 11 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT ATTACHMENT C Study Plan 12 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Facilities Study Study Plan City of Vemon Vernon Power Plant (610 MV1) July 27, 2006 California ISO INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Table of Contents Project Summary ............................ :............................................................................... ..............................................1 Summary of Facilities Study Scope................................................................................................2 FacilitiesStudy Schedule..............................................................................................................................3 CostEstimates Summary .........................................................................................................................4 SiteVicinity Map...........................................................................................................................................................5 ConceptualOne -Line Diagram ................................ ....................................................:.........................6 Facilities Study Assumptions................................................................................7 Summary of the SIS Results & Mitigation Plan..........................................................................................................8 Summary of Deliverability Study Results ................. . .................................................................................................9 Detailed Facilities Study Work Scope & Cost Estimates..........................................................................................10 Estimated Time to Construct (Construction Schedule)...........................................................................................11 Reasonsa. Re -Study May Be Needed .............................. .......................................................................................12 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 1 PROJECT SUMMARY The Vernon Power Plant to be studied is a 610 MW (net) plant. An incremental 304 MW (net) increase to the Vernon Power Plant has been requested in a separate Interconnection Request. The full configuration of the natural gas fired combined cycle plant will consist of three gas turbines and one steam turbine with a total net output of 914 MW. The Vernon Power Plant will be located at 3200 Fruitland Avenue in Vernon, California, and will be interconnected to Southern California Edison Company's ("SCE") Laguna Bell Substation 230 kV bus via a double circuit 230 kV transmission line. The City of Vernon (the "Interconnection Customer") has requested a March 31, 2009 in- service date, a May 31, 2009 Trial Operation date, and a July 31, 2009 Commercial Operation date. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 2 SUMMARY OF FACILITIES STUDY SCOPE The Interconnection Facilities Study ("Facilities Study") shall include the following scope of work: (i) the identification of the Participating TO'S Interconnection Facilities, Distribution Upgrades and Network Upgrades necessary to interconnect the Vernon Power Plant, (ii) the, estimated cost of such required facilities and upgrades, and (iii) the estimated time to complete the required facilities and upgrades. In addition, the Interconnection System Impact Study report dated June 23, 2006 did not include an evaluation of SCE's Distribution System. The impacts to the Distribution System will be evaluated as part of the Facilities Study. Vernon has also requested that the Facilities Study include an evaluation of the feasibility and associated cost with interconnecting the gen-tie line at the northwest side of Laguna Bell Substation. The estimated cost and time to perform such study will be evaluated after Vernon provides the details of such request. As a result, the estimated time to complete the study as specified below may need to be revised. 2 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 3 FACILITIES STUDY SCHEDULE The study is scheduled to be completed as follows: one hundred twenty (120) Calendar Days, with no more than a +/- 20 percent cost estimate two hundred ten (210) Calendar Days, with no more than a +/- 10 percent cost estimate 3 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 4 COST ESTIMATES SUMMARY The estimated costs for the Participating TO's Interconnection Facilities will include the costs associated with sole use facilities between the Vernon Power Plant and the Point of Interconnection at Laguna Bell Substation, which do not include Distribution Upgrades or Network Upgrades, to accommodate the Vernon Power Project. Such facilities include those required to terminate the 230 kV double circuit gen-tie line at Laguna Bell Substation and any protection equipment, communication equipment, controls and other facilities associated with such termination. The estimated costs for Network Upgrades will include the facilities and upgrades required at or beyond the Point of Interconnection, including substation facilities at Laguna Bell Substation; transmission facilities, protection equipment, communication equipment, and controls at Laguna Bell Substation;- and facilities required beyond Laguna Bell Substation, such as at other substations and on other transmission lines in the ISO Controlled Grid to accommodate the interconnection of the Vernon Power Plant. The estimated costs for Distribution Upgrades will include the facilities and upgrades, including substations and subtransmission and distribution lines, required on SCE's Distribution System to accommodate the interconnection of the Vernon Power Plant. 4 INTERCONNECTION FACILITIES STUDY AGREEMENT . VERNON POWER PLANT CHAPTER 5 SITE VICINITY MAP The site vicinity map showing the project location and the proposed Point of Interconnection will be provided in the Facilities Study. 5 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 6 CONCEPTUAL ONE -LINE DIAGRAM The conceptual one -line diagram showing the proposed Point of Interconnection will be provided in the Facilities Study. 1.1 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 7 FACILITIES STUDY ASSUMPTIONS The Facilities Study will be based on the results of the Interconnection System Impact Study ("SIS") and upon the following assumptions: 1) An Interconnection Customer requested in-service date of March 31, 2009, a Trial Operation date of May 31, 2009, and a Commercial Operation date of July 31, 2009; however, such assumptions shall be subject to change after study results, permitting requirements, design, land issues and material lead times are known, so that a more accurate determination can be made. 2) The technical data supplied by the Interconnection Customer for this Large Generating Facilities are accurate and complete. 3) The maximum interconnection capacity requested by the Interconnection Customer is 610 MW. 4) The Interconnection Customer will install, own, operate and maintain all ISO metering equipment. The ISO metering equipment will be located on the Interconnection Customer's side of the Point of Interconnection. 5) The Interconnection Customer shall design the Large Generating Facility to maintain a composite power delivery at continuous rated power output at the terminals of the Electric Generating Unit at a power factor within the range of 0.95 leading to 0.90 lagging, unless the ISO has established different requirements that apply to all generators in the Control Area on a comparable basis. 6) The Facilities Study results will reflect the ISO Tariff, rules and protocols and SCE's Interconnection Handbook in effect at the time SCE provides the Facilities Study results to the Interconnection Customer. 7) Unless otherwise agreed to by SCE, it is assumed that Vernon will design, build, and own the double circuit 230 kV generation tie line that will connect the plant switchyard to the Laguna Bell 230kV Bus. 7 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 8 SUMMARY OF THE SIS RESULTS & MITIGATION PLAN The results and mitigation plan identified in the SIS for the bulk power system are as follows: 1) Interconnection of Vernon Power Plant into Laauna Bell Substation: The non -binding cost estimate to terminate the 230kV double circuit gen-tie line into Laguna Bell Substation, including the work required to reconfigure the substation in order to accommodate the line, is $30 million. 2) Power Flow Analysis: Studies identified that with addition of the Vernon Power Plant, the Lighthipe- Mesa 230 kV line was overloaded from 2424Amps/101 % to 2671 Amps/111 % under the outages of Laguna Bell -Rio Hondo 230 kV No.1 line and Mesa - Redondo 230 kV No.1 line. Such overload was triggered in the base case and will be the responsibility of SCE to mitigate. Such mitigation will be performed by removing or upgrading wave traps on the Lighthipe-Mesa No. 1 23Q kV line and modifying the protection for such line. 3) Post -Transient Power Flow Analysis: There were no post -transient power flow impacts identified with addition of the Vernon Power Plant. 4) Transient Stability Analysis: The transmission system remained in operating equilibrium throughout all transmission contingencies with inclusion of the Project. Also the Vernon Power Plant met the Low Voltage Ride -Through criterion. None of the Vernon Power Plant generators tripped due to the adverse contingencies that were simulated. Phase -to -ground faults were not simulated in the SIS since previously studied projects that had a larger output did not reveal any problems. 5) Short -Circuit Analysis: Preliminary three -phase -to -ground SCD analysis indicated that the Vernon Power Plant contributed short circuit duties on several SCE owned circuit breakers, but did not trigger any upgrades or replacement. However, studies indicated that prior projects in the queue triggered upgrade and replacement of 62 SCE owned circuit breakers at a non -binding estimated cost of $17.123 million. Single -Line -to -Ground (SLG) circuit breaker evaluation will be performed in the Facilities Study. As specified in the "Summary of Facilities Study Scope" section, the impacts to SCE's Distribution System will be evaluated as part of the Facilities Study. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 9 SUMMARY OF DELIVERABILITY STUDY RESULTS A deliverability study has not yet been performed by the ISO. Such study will be performed in a separate ISO study process at this time. 9 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 10 DETAILED FACILITIES STUDY WORK SCOPE & COST ESTIMATES The detailed facilities study work scope and cost estimates will be provided in the Facilities Study and will include the following items. - Impacts to SCE's 66 kV systemTransmission, subtransmission and distribution line evaluation - Substation evaluation - Land and right-of-way evaluation (Note Only the estimated cost to perform such evaluation will be included in the study. The actual land and right-of-way evaluations will be performed as part of the engineering and design work.) - System protection evaluation - Cost estimates (total costs) for the Participating TO'S Interconnection Facilities, Distribution Upgrades and Netwok Upgrades - The feasibility and associated estimated cost for interconnecting the gen-tie line at the northwest side of Laguna Bell Substation. 10 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 11 ESTIMATED TIME TO CONSTRUCT (CONSTRUCTION SCHEDULE) The estimated time to construct the required Participating TO's Interconnection Facilities, Distribution Upgrades and Network Upgrades will be provided in the Facilities Study. 11 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 12 REASONS A RE -STUDY MAY BE NEEDED Pursuant to Section 8.5 of the Large Generator Interconnection Procedures (LGIP), a re -study of the Facilities Study may be needed due to a higher queued project dropping out of the queue or a modification of a higher queued project pursuant to LGIP Section 4.4, or any other effective change in information which necessitates a re -study. 12 CITY OF VERNON FOLIO NUMBER LIGHT & POWER 503278 4305 SANTA FE AVENUE VERNON, CALIFORNIA 90058-0805 (323) 583-8811 THE SUM OF D 10 0,0 0 Odols 0 Octs California ISO PAY TO 151 Blue Ravine Road THE ORDER OF Folsom, CA. 95630 Market & Product Development Div. Attn: Roni Reese Bank of America CHECK 16/66 NUMBER usSo327811' 1:12200066 W L4S94-OS9S811- .n�uico - nsnc CAKITA FC A\/F . VFRNnN CAI IFnRNIA 9(NISR-0805 CHECK DATE 08 22 1. 06 CHECK AMOUNT 100,000.00 VOID AFTER 90 DAYS VENDOR NO. VENDOR NAME DATE CHECK ISSUED CHECK NO. 000205 California ISO 08/22/06 503278 CITY ACCOUNT NUMBER YOUR INV. NO. YOUR INV. DATE PAYMENT DESCRIPTION DISC. TAKEN NET AMT. PAID 055 100 9192 5962 OOAFCSCE Deposit For Estimated Inter- 100,000.00 Connection Facilities Study Cost For Interconnection Of V.P. . File Dated 09/05/06 LG 100,000.00 CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: August 30, 2006 TO: Donal O'Callaghan, Director of Light & Power FROM,4 Nelly Giron, Deputy City Clerk RE: Resolution No. 9114 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of an Interconnection Facilities Study Agreement By and Between the City of Vernon and the California Independent System Operator Corporation Regarding the Vernon Power Plant Transmitted herewith is a copy of the fully executed agreement and Resolution No. 9114, referenced above, which was approved by City Council on August 16, 2006. Thank you. NG:dr c: Resolution File No. 9114 Agreement File No. 06-096 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT INTERCONNECTION FACILITIES STUDY AGREEMENT THIS AGREEMENT is made and entered into this211Tday of WWII', 20 o 6 by and between City of Vernon, a municipal corporation organized and existing under the laws of the State of California, ("Interconnection Customer,") and the California Independent System Operator Corporation, a California nonprofit public benefit corporation existing under the laws of the State of California, ("ISO"). The Interconnection Customer and the ISO each may referred to as a "Party," or collectively as the "Parties." RECITALS WHEREAS, the Interconnection Customer is proposing to develop a Large Generating Facility or generating capacity addition to an existing Generating Facility consistent with the Interconnection Request submitted by the Interconnection ,Customer dated September 9, 2005 and WHEREAS, the Interconnection Customer desires to interconnect the Large Generating Facility with the ISO Controlled Grid; WHEREAS, the ISO has completed an Interconnection System Impact Study (the "System Impact Study") and provided the results of said study to the Interconnection Customer; and WHEREAS, the Interconnection Customer has requested the ISO to conduct or cause to be performed an Interconnection Facilities Study to specify and estimate the cost of the equipment, engineering, procurement and construction work needed on the Participating TO's electric system to implement the conclusions of the Interconnection System Impact Study in accordance with Good Utility Practice to physically and electrically connect the Large Generating Facility to the ISO Controlled Grid. NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein the Parties agreed as follows: 1.0 When used in this Agreement, with initial capitalization, the terms specified shall have4he meanings indicated in the LSO's FERC-approved Standard Large Generation Interconnection Procedures ("LGIP") or the, Master Definitions Supplement, Appendix A to the ISO Tariff, as applicable. 2.0 The Interconnection Customer elects and the ISO shall conduct or cause to be performed an Interconnection Facilities Study consistent with the LGIP in accordance with the ISO Tariff. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT 3.0 The scope of the Interconnection Facilities Study shall be subject to the assumptions set forth in Attachment A and the data provided in Attachment B to this Agreement. 4.0 The Interconnection Facilities Study report (i) shall provide a description, estimated cost, including, if applicable, the cost of remedial measures that address the financial impacts, if any; on Local Furnishing Bonds, of (consistent with Attachment A), and schedule for required facilities or for effecting remedial measures that address the financial impacts, if any, on Local Furnishing Bonds within each Participating TO's electric system to interconnect the Large Generating Facility to the ISO Controlled Grid and (ii) shall address the short circuit, instability, and power flow issues identified in the Interconnection System Impact Study. 5.0 The Interconnection Customer shall provide a deposit of the greater of $100,000 or the Interconnection Customer's portion of the estimated monthly cost for the performance of the Interconnection Facilities Study. The time for completion of the Interconnection Facilities Study is specified in Attachment A. For studies where the estimated cost exceed $100,000, the ISO may invoice Interconnection Customer on a monthly basis for the work to be conducted on the Interconnection Facilities Study for the remaining balance of the estimated Interconnection Facilities Study cost. The Interconnection Customer shall pay invoiced amounts within thirty (30) Calendar Days of receipt of invoice. The ISO shall continue to hold the amounts on deposit until settlement of the final invoice. Following the issuance of the Interconnection Facilities. Study, the ISO shall charge and the Interconnection Customer shall pay the actual costs of the Interconnection Facilities Study, inclusive of any re -studies and amendments. to the Interconnection Facilities Study, pursuant to Section 9 of this Agreement. Any difference between the deposit made toward the Interconnection Facilities Study and the actual cost of the study, inclusive of any re -studies and amendments thereto, shall be paid by or refunded to the Interconnection Customer, as appropriate in accordance with Section 13.3 of the LGIP. 6.0 The Interconnection Facilities Study will be based upon the results of the Interconnection System Impact Study and the technical information provided by the Interconnection Customer in the Interconnection Request, subject to any modifications in accordance with Section 4.4 of the LGIP. The ISO reserves the right to request additional technical information from the Interconnection Customer as may reasonably become necessary consistent with Good Utility Practice during the course of the Interconnection Facilities Study. 4 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT If the Interconnection Customer modifies its Interconnection Request or the technical information provided therein is modified, the time to complete the Interconnection Facilities Study may be extended. 7.0 Pursuant to Section 3.7 of the LGIP, the ISO will coordinate the conduct of any studies required to determine the impact of the Interconnection Request on Affected Systems. The ISO may provide a copy of the Interconnection Facilities Study results to an Affected System Operator and the Western Electricity Coordinating Council. Requests for review and input from Affected System Operators or the Western Electricity Coordinating Council may arrive at any time prior to interconnection, and a revision of the Interconnection Facilities Study or re -study may be required in such event. 8.0 Substantial portions of technical data and assumptions used to perform the Interconnection Facilities Study, such as system conditions, existing and planned generation, and unit modeling, may change after the ISO provides the Interconnection Facilities Study results to the Interconnection Customer. Study results will reflect available data at the time the ISO provides the'Interconnection Facilities Study to the Interconnection Customer. The ISO shall not be responsible for any additional costs, including, without limitation, costs of new or additional facilities, system upgrades, or schedule changes, that may be incurred by the Interconnection Customer as a result of changes in such data and assumptions. 9.0 In the event that a re -study or amendment of the Interconnection Facilities Study is required, the ISO shall provide notification of the need for such re -study or amendment, and the Interconnection Customer shall provide direction as to whether to proceed with the re -study or amendment and any associated deposit payment pursuant to Section 8.5 or Section 12.2.4 of the LGIP, as applicable. 10.0 The ISO shall maintain records and accounts of all costs incurred in performing the Interconnection Facilities Study, inclusive of any re -studies or amendments thereto, in sufficient detail to allow verification of all costs incurred, including associated overhead. The Interconnection Customer shall have the right, upon reasonable notice, within a reasonable time at the ISO offices and at its own expense, to audit the ISO's records as necessary and as appropriate in order to verify costs incurred by the ISO. Any audit requested by the Interconnection Customer shall be completed, and written notice of any audit dispute provided to the ISO within one hundred eighty (180) Calendar Days following receipt by the Interconnection Customer of the ISO's notification of the final costs of the 3 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Interconnection Facilities Study, inclusive of any re -study or amendment thereto. 11.0 In accordance with Section 3.8 of the LGIP, the Interconnection Customer may withdraw its Interconnection Request at any time by written notice to the ISO. Upon receipt of such notice, this Agreement shall terminate. 12.0 Pursuant to Section 8.1 of the LGIP, this Agreement shall become effective upon the date the fully executed Agreement and deposit specified in Section 6 of this Agreement are received by the ISO. If the ISO does not receive the fully executed Agreement and payment pursuant to Section 8.1 of the LGIP, then the Interconnection Request will be deemed withdrawn upon the Interconnection Customer's receipt of written notice by the ISO pursuant to Section 3.8 of the LGIP. 13.0 Miscellaneous. 13.1 Dispute Resolution. Any dispute, or assertion of a claim, arising out of or in connection with this Interconnection Facilities Study Agreement, shall be resolved in accordance with Section 13.5 of the LGIP. 13.2 Confidentiality. Confidential Information shall be treated in accordance with Section 13.1 of the LGIP. 13.3 Binding Effect. This Interconnection Facilities Study Agreement and the rights and obligations hereof, shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties hereto. 13.4 Conflicts. In the event of a conflict between the body of this . Interconnection Facilities Study Agreement and any attachment, appendices or exhibits hereto, the terms and provisions of the body of this Interconnection Facilities Study Agreement shall prevail and be deemed the final intent of the Parties. 13.5 Rules of Interpretation. This Interconnection Facilities Study Agreement, unless a clear contrary intention appears, shall be construed and interpreted as follows: (1) the singular number includes the plural number and vice versa; (2) reference to any person includes such person's successors and assigns but, in the case of a Party, only if such successors and assigns are permitted by this Interconnection Facilities Study Agreement, and reference to a person in a particular capacity excludes such person in any other capacity or individually; (3) reference to any agreement (including this Interconnection Facilities Study Agreement), document, instrument or tariff means such agreement, document, instrument, or tariff as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof; 4 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT (4) reference to any applicable laws and regulations means such applicable laws and regulations as amended, modified, codified, or reenacted, in whole or in part, and in effect from time to time, including, if applicable, rules and regulations promulgated thereunder; (5) unless expressly stated otherwise, reference to any Article, Section or Appendix means such Article or Section of this Interconnection Facilities Study Agreement or such Appendix to this Interconnection Facilities Study Agreement, or such Section to the LGIP or such Appendix to the LGIP, as the case may be; (6) "hereunder", "hereof", "herein", "hereto" and words of similar import shall be deemed references to this Interconnection Facilities Study Agreement as a whole and not to any particular Article, Section, or other provision hereof or thereof; (7) "including" (and with correlative meaning "include") means including without limiting the generality of any description preceding such term; and (8) relative to the determination of any period of time, "from" means "from and including", "to"means "to but excluding" and "through" means "through and including". 13.6 Entire Agreement. This Interconnection Facilities Study Agreement, including all Appendices and Schedules attached hereto, constitutes the entire agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Interconnection Facilities Study Agreement. There are no other agreements, representations, warranties, or covenants which constitute any part of the consideration for, or any condition to; any Party's compliance with its obligations under this Interconnection Facilities Study Agreement. 13.7 No Third Party Beneficiaries. This Interconnection Facilities Study Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed, are solely for the use and benefit of the Parties, their successors in interest and, where permitted, their. assigns 13.8 Waiver. The failure of a Party to this Interconnection Facilities Study Agreement to insist, on any occasion, upon strict performance of any provision of this Interconnection Facilities Study Agreement will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. Any waiver at any time by either Party of its rights with respect to this Interconnection Facilities Study Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, duty of this Interconnection Facilities Study Agreement. Termination or default of this Interconnection Facilities Study 5 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Agreement for any reason by the Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Participating TO or ISO. Any waiver of this Interconnection Facilities Study Agreement shall, if requested, be provided in writing. Any waivers at any time by any Party of its rights with respect to any default under this Interconnection Facilities Study Agreement, or with respect to any other matter arising in connection with this Interconnection Facilities Study Agreement, shall not constitute or be deemed a waiver with respect to any subsequent default or other matter arising in connection with this Interconnection Facilities Study Agreement. Any delay, short of the statutory period of limitations, in asserting or enforcing any right under this Interconnection Facilities Study Agreement shall not constitute or be deemed a waiver of such right. 13.9 Headings. The descriptive headings of the various Articles and Sections of this Interconnection Facilities Study Agreement have been inserted for convenience of reference only and are of no significance in the interpretation or construction of this Interconnection Facilities Study Agreement. 13.10 Multiple Counterparts. This Interconnection Facilities Study Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument. 13.11 Amendment. The Parties may by mutual agreement amend this Interconnection Facilities Study Agreement by a written instrument duly executed by both of the Parties. 13.12 Modification by the Parties. The Parties may by mutual agreement. amend the Appendices to this Interconnection Facilities Study Agreement by a written instrument duly executed by both of the Parties. Such amendment .shall become effective and a part of this Interconnection Facilities Study Agreement upon satisfaction of all applicable laws and regulations. 13.13 Reservation of Rights. The ISO shall have the right to make a unilateral filing with FERC to modify this Interconnection Facilities Study Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule or regulation under section 205 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder, and Interconnection Customer shall have the right to make a unilateral filing with FERC to modify this Interconnection Facilities Study Agreement pursuant to section 206 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder; provided that each Party shall have the right to protest any such filing by A INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT another Party and to participate fully in any proceeding before FERC in which such modifications may considered. Nothing in this Interconnection Facilities Study'Agreement shall limit the rights of the Parties or of FERC under sections 205 or 206 of the Federal Power Act and FERC's rules and regulations thereunder, except to the extent that the Parties otherwise mutually agree as provided herein. 13.14 No Partnership. This Interconnection Facilities Study Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon any. Party. No, Party. shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, another Party. 13.15 Assignment. This Interconnection Facilities Study Agreement may be assigned by a Party only with the written consent of the other Party; provided that a Party may assign this Interconnection Facilities Study Agreement without the consent of the other Party to any Affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Interconnection Facilities Study Agreement; -and provided further that the Interconnection Customer shall have the right to assign this Interconnection Facilities Study Agreement, without the consent of the other Party, for collateral security purposes to aid in providing financing for the Large Generating Unit, provided that the Interconnection Customer will require any secured party, trustee or mortgagee to notify the other Party of any such assignment. Any financing arrangement entered into by the Interconnection Customer pursuant to this Article will provide that prior to or upon the exercise of the secured party's, trustee's or mortgagee's assignment rights pursuant to said arrangement, the secured creditor, the trustee or mortgagee will notify the other Party of the date and particulars of any such exercise of assignment right(s). Any attempted assignment that violates this Article is void and ineffective. Any assignment under this Interconnection. Facilities Study Agreement shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. 7 l INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized officers or agents on the day and year first above written. California Independent System Operator Corporation By:� Title: V I P r'e 5 i d.e-�I-A- Date: -7 ) a 6. / e:.00 V City of Vernon Title: Mayor Date: August 21, 2006 ATTEST: Bruce V. Malkenhorst, Jr. Acting City Clerk APPROVES AS TO FORM: Hhrrison f Assistant City Attorney INTERCONNECTION FACILITIES STUDY AGREEMENT Attachment A Interconnection Facilities Study Agreement INTERCONNECTION CUSTOMER SCHEDULE ELECTION FOR CONDUCTING THE INTERCONNECTION FACILITIES STUDY The ISO shall use Reasonable Efforts to complete the study and issue a draft Interconnection Facilities Study report to the Interconnection Customer. Prior to issuing draft study results to the Interconnection Customer, the Participating TO and ISO shall share results for review and incorporate comments within, the following number of days after of receipt of an executed copy of this Interconnection Facilities Study Agreement: one hundred twenty (120) Calendar Days with no more than a +/- 20 percent cost estimate contained in the report, or two hundred ten (210) Calendar Days with no more than a +/- 10 percent cost estimate contained in the report. 9 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Attachment B Interconnection Facilities Study Agreement DATA FORM TO BE PROVIDED BY THE INTERCONNECTION CUSTOMER WITH THE INTERCONNECTION FACILITIES STUDY AGREEMENT Provide two copies of this completed form and other required plans and diagrams in accordance with Section 8.1 of the LGIP. Provide location plan and one -line diagram of the plant and station facilities. For staged projects, please indicate future generation, transmission circuits, etc. One set of metering is required for each generation connection to the new bus or existing ISO Controlled Grid station. Number of generation connections: On the one line indicate the generation capacity attached at each metering location. (Maximum load on CT/PT) On the one line indicate the location of auxiliary power. (Minimum load on CT/PT) Will an alternate source of auxiliary power be available during CT/PT maintenance? Yes No Will a transfer bus on the generation side of the metering require that each meter set be designed for the total plant generation? Yes No (Please indicate on one line). What type of control system or PLC will be located at the Interconnection Customer's Large Generating Facility? What protocol does the control system or PLC use? Please provide a 7.5-minute quadrangle of the site. Sketch the plant, station, transmission line, and property line. 10 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Physical dimensions of the proposed interconnection station: Bus length from generation to interconnection station: Line length from interconnection station to the Participating TO's transmission line. Tower number observed in the field. (Painted on tower leg)* Number of third party easements required for transmission Iines*: * To be completed in coordination with the Participating TO or ISO. Is the Large Generating Facility in the Participating TO's service area? Yes No Local service provider for auziliary and other power: Please provide proposed schedule dates: Begin Construction Date: Generator step-up transformer Date: receives back feed power Generation Testing Date:; Commercial Operation Date: Level of Deliverability: Choose one of the following: Deliverability with no Network Upgrades 100% Deliverability 11 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT ATTACHMENT C Study Plan 12 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 1 PROJECT SUMMARY The Vernon Power Plant to be studied is a 610 MW (net) plant. An incremental 304 MW (net) increase to the Vernon Power Plant has been requested in a separate Interconnection Request. The full configuration of the natural gas fired combined cycle plant will consist of three gas turbines and one steam turbine with a total net output of 914 MW. The Vernon Power Plant will be located at 3200 Fruitland Avenue in Vernon, California, and will be interconnected to Southern California Edison Company's ("SCE") Laguna Bell Substation 230kV bus via a double circuit 230 kV transmission line. The City of Vernon (the "Interconnection Customer") has requested a March 31, 2009 in- service date, a May 31,.2009 Trial Operation date, anda July 31, 2009 Commercial Operation date. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Table of Contents ProjectSummary ..........................................................................................................................................................1 Summaryof Facilities Study Scope.......................................'................................................................................:.:..2 0 FacilitiesStudy Schedule.............................................................................................................................................3 CostEstimates Summary ............................................................................................................................................4 SiteVicinity Map...........................................................................................................................................................5 ConceptualOne -Line Diagram...................................................................................................................................6 FacilitiesStudy Assumptions.......................................................................................................................................7 Summary of the SIS Results & Mitigation Plan..........................................................................................................8 Summaryof Deliverability Study Results...................................................................................................................9 Detailed Facilities Study Work Scope & Cost Estimates .................................. :...................................................... 10 Estimated Time to Construct (Construction Schedule)...........................................................................................11 Reasonsa Re -Study May Be Needed.....................................................................................................................12 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT Facilities Study Study Plan City of Vernon Vernon Power Plant (610 MV1) July 27, 2006 v California ISO INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 2 SUMMARY OF FACILITIES STUDY SCOPE The Interconnection Facilities Study ("Facilities Study") shall include the following scope of work: (i) the identification of the Participating TO's Interconnection Facilities, Distribution Upgrades and Network Upgrades necessary to interconnect the' Vernon Power Plant, (ii) the estimated cost of such required facilities and upgrades, and (iii) the estimated time to complete the required facilities and upgrades. In addition, the Interconnection System Impact Study report dated June 23, 2006 did not include an evaluation of SCE's Distribution System. The impacts to the Distribution System will be evaluated as part of the Facilities Study. Vernon has also requested that the Facilities Study include an evaluation of the feasibility and associated cost with interconnecting the gen-tie line at the northwest side of Laguna Bell Substation. The estimated cost and time to perform such study will be evaluated after Vernon provides the details of such request. As a result, the estimated time to complete the study as specified below may need to be revised. 2 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 3 FACILITIES STUDY SCHEDULE The study is scheduled to be completed as follows: - one hundred twenty (120) Calendar Days, with no more than a +/- 20 percent cost estimate - two hundred ten (210) Calendar Days, with no more than a +/- 10 percent cost estimate 3 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 4 COST ESTIMATES SUMMARY The estimated costs for the Participating TO's Interconnection Facilities will include the costs associated with sole use facilities between the Vernon Power Plant and the Point of Interconnection at Laguna Bell Substation, which do ' not include Distribution Upgrades or, Network Upgrades, to accommodate the Vernon. Power Project. Such facilities include those required to terminate the 230 kV double circuit gen-tie line at Laguna Bell Substation and any protection equipment, communication equipment, controls and other facilities associated with such termination. The estimated costs for Network Upgrades will include the facilities and upgrades required at or beyond the Point of Interconnection, including substation facilities at Laguna Bell Substation; transmission facilities, protection equipment, communication equipment, and controls at Laguna Bell Substation; and facilities required beyond Laguna Bell Substation, such as at other substations and on other transmission lines in. the ISO Controlled Grid to accommodate the interconnection of the Vernon Power Plant. The estimated costs for Distribution Upgrades will include the facilities and upgrades, including substations and subtransmission and distribution lines, required on SCE's Distribution System to accommodate the interconnection of the Vernon Power Plant. 4 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 5 SITE VICINITY MAP The site vicinity map showing the project location and the proposed Point of Interconnection will be provided in the Facilities Study. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 6 CONCEPTUAL ONE -LINE DIAGRAM The conceptual one -line diagram, showing the proposed Point of Interconnection will be provided in the Facilities Study. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 7 FACILITIES STUDY ASSUMPTIONS The Facilities Study will be based on the results of the Interconnection System Impact Study ("SIS") and upon the following assumptions: 1) An Interconnection Customer requested in-service date of March 31, 2009, a Trial Operation date of May 31, 2009, and a Commercial Operation date of July 31, 2009; however, such assumptions shall be subject to change. after study results, permitting requirements, design, land issues and material lead times are known, so that a more accurate determination can be made. 2) The technical data supplied by the Interconnection Customer for this Large Generating Facilities are accurate and complete. 3) The maximum interconnection capacity requested by the Interconnection Customer is 610 MW. 4) The Interconnection Customer will install, own, operate and maintain all ISO metering equipment. The ISO metering equipment will be located on the Interconnection Customer's side of the Point of Interconnection. 5) The Interconnection Customer shall design the Large Generating Facility to maintain a composite power delivery at continuous rated power output at the terminals of the Electric Generating Unit at a power factor within the range of 0.95 leading to 0.90 lagging, unless the ISO has established different requirements that apply to all generators in the Control Area on a comparable basis. 6) The Facilities Study results will reflect the ISO Tariff, rules and protocols and SCE's Interconnection Handbook in effect at the time SCE provides the Facilities Study results to the Interconnection Customer. 7) Unless otherwise agreed to by SCE, it is assumed that Vernon will design, build, and own the double circuit 230 kV generation tie line that will connect the plant switchyard to the Laguna Bell 230kV Bus 7 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 8 SUMMARY, OF THE SIS RESULTS & MITIGATION PLAN The results and mitigation plan identified in the SIS for the bulk power system are as follows: 1) Interconnection of Vernon Power Plant into Laguna Bell Substation: The non -binding cost estimate to terminate the 230kV double circuit gen-tie line into Laguna Bell Substation, including the work required to reconfigure the substation in order to accommodate the line, is $30 million. 2) Power Flow Analysis: Studies identified that with addition of the Vernon Power Plant, the Lighthipe- Mesa 230 kV line was overloaded from 2424Amps/101 % to 2671 Amps/111 % under the outages of Laguna Bell -Rio Hondo 230 kV No.1 line and Mesa - Redondo 230 kV No.1 line. Such overload was triggered in the base case and will be the responsibility of SCE to mitigate. Such mitigation will be performed by removing or upgrading wave traps on the Lighthipe-Mesa No. 1 230 kV line and modifying the protection for such line. 3) Post -Transient Power Flow Analysis: There were no post -transient power flow impacts identified with addition of the Vernon Power Plant. 4) Transient Stability Analysis: The transmission system remained in operating equilibrium throughout all transmission contingencies with inclusion of the Project. Also the Vernon Power Plant met the Low Voltage Ride -Through criterion. None of the Vernon Power Plant generators tripped due to the adverse contingencies that were simulated. Phase -to -ground faults were not simulated in the SIS since previously studied projects that had a larger output did not reveal any problems. 5) Short -Circuit Analysis: Preliminary three -phase -to -ground SCD analysis indicated that the Vernon Power Plant contributed short circuit duties on several SCE owned circuit breakers, but did not trigger any upgrades or replacement. However, studies indicated that prior projects in the queue triggered upgrade and replacement of 62 SCE owned circuit breakers at a non -binding estimated cost of $17.123 million. Single -Line -to -Ground (SLG) circuit breaker evaluation will be performed in the Facilities Study. As specified in the "Summary of Facilities Study Scope" section, the impacts to SCE's Distribution System will be evaluated as part of the Facilities Study. f3 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 9 SUMMARY OF DELIVERABILITY STUDY RESULTS A deliverability study has not yet been performed by the ISO. Such study will be performed in a separate ISO study process at this time. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 10 DETAILED FACILITIES STUDY WORK SCOPE & COST ESTIMATES The detailed facilities study work scope and cost estimates will be provided in the Facilities Study and will include the following items. - Impacts to SCE's 66 kV systemTransmission, subtransmission and distribution line evaluation Substation evaluation Land and right-of-way evaluation (Note: Only the estimated cost to perform such evaluation will be included in the study. The actual land and right-of-way evaluations will be performed as part of the engineering and design work.) - System protection evaluation Cost estimates (total costs) for the Participating TO'S interconnection Facilities, Distribution Upgrades and Netwok Upgrades - The feasibility and associated estimated cost for interconnecting the gen-tie line at the northwest side of Laguna Bell Substation. 10 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT CHAPTER 11 ESTIMATED TIME TO CONSTRUCT (CONSTRUCTION SCHEDULE) The estimated time to construct the required Participating TO's Interconnection Facilities, Distribution Upgrades and Network Upgrades will be provided in the Facilities Study. INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWERPLANT CHAPTER 12 REASONS A RE -STUDY MAY BE NEEDED Pursuant to Section 8.5 of the Large Generator Interconnection Procedures (LGIP), a re -study of the Facilities Study may be needed due to a higher queued project dropping out of the queue or a modification of a higher queued project pursuant to LGIP Section 4.4, or any other effective change in information which necessitates a re -study.