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Resolution No. 9300� e s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 lb 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9300 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 EXPANSION 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 anl, 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 2301 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, on August 16, 2006, the City Council of the City of Vernon adopted Resolution No. 9114 approving an Interconnection Facilities Study Agreement with the Independent System Operator Corporation ("ISO") to assess the impact of interconnecting the VPP Project to the ISO Controlled Grid at an output of 610 mW (net); and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ►' 21 22 23 24 25 26 PAFM 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 Expansion is considered a Large Generating Facility and in accordance with the Cal -ISO Large Generator Interconnection Procedure, the ISO has completed an Interconnection System Impact Study to assess the impact of the VPP Project Expansion; and WHEREAS, the City's Light & Power Department has determined that 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 tol', 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 Expansion; (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 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 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 - 3 r I 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 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 three fully executed Agreement, together with the deposit of $100,000.00, to the ISO. 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 April, 2007. I ATTEST : ELA GIRON, Acting City Clerk LE0�IS. MAMR�,Ma r - 4 - 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, MANUELA GIRON, Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9300, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, April 16, 2007, and thereafter was duly signed by the Mayor of the City of Vernon. MANUELA GI N, Acting City Clerk (SEAL) - 5 - EXHIBIT 0 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT EXPANSION (304 MW) INTERCONNECTION FACILITIES STUDY AGREEMENT THIS AGREEMENT is made and entered into this day of , 20 by and between City of Vernon, a municipal corporation of the State of California, which owns and operates a municipal electric utility system engaged in the Generation, transmission, distribution, purchase and sale of electric power and Energy at wholesale and retail, 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 April 12, 2006; 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 EXPANSION (304 MW) 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 K INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT EXPANSION (304 MW) consistent with Good Utility Practice during the course of the Interconnection Facilities Study. 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 3 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT EXPANSION (304 MW) Interconnection Customer of the ISO's notification of the final costs of the 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 CI INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT EXPANSION (304 MW) in accordance with the terms thereof and, if applicable, the terms hereof; (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 5 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT EXPANSION (304 MW) Agreement. Termination or default of this Interconnection Facilities Study 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 anytime 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; 0 INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT EXPANSION (304 MW) provided that each Party shall have the right to protest any such filing by 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 EXPANSION (304 MW) 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 f' By: e r Title: V f cue.- Pf,cs i ct---± Date: kaYca,,.:)-I , -.)-o-0 2 City of Vernon By: Title: Date: INTERCONNECTION FACILITIES STUDY AGREEMENT VERNON POWER PLANT EXPANSION (304 MW) 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 CTJPT 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 EXPANSION (304 MW) 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 auxiliary 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 EXPANSION (304 MW ) Attachment C Interconnection Facilities Study Agreement INTERCONNECTION FACILITIES STUDY PLAN 12 California ISO Study Plan k March 27, 2007 California Independent System Operator Corporation INTERCONNECTION FACILITIES STUDY AGREEMENT — ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) Table of Contents Chapter1 - Project Summary ....................................................................................................................................1 Chapter 2 - Summary of Facilities Study Scope.......................................................................................................1 Chapter 3 - Facilities Study Fee and Schedule........................................................................................................1 Chapter4 - Cost Estimates Summary .......................................................................................................................2 Chapter5 - Site Vicinity Ma.......................................................................................... 2 Chapter 6 - Conceptual One -Line Diagram ..........................................................................................3 Chapter7 - Facilities Study Assumptions.................................................................................................................4 Chapter 8 Summary of the SIS Results & Mitigation Plan........................................................................................4 Chapter 9 Summary of Deliverability Study Results.................................................................................................. 5 Chapter 10 - Detailed Facilities Study Work Scope & Cost Estimates...................................................................5 Chapter 11 - Estimated Time to Construct (Construction Schedule)......................................................................8 Chapter 12 - Reasons a Re -Study May Be Needed................................................................................................. 9 INTERCONNECTION FACILITIES STUDY AGREEMENT — ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) CHAPTER 1 - PROJECT SUMMARY The Vernon Power Plant Expansion ("Project") to be studied is a 304 MW (net) project. An initial 610 MW (net) to the Vernon Power Plant has been requested in a separate Interconnection Request ahead in queue. 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. CHAPTER 2 - SUMMARY OF FACILITIES STUDY SCOPE The Interconnection Facilities Study ("Facilities Study") shall include the following scope of work, as further detailed in Chapter 10: (i) the identification of the Participating TO's Interconnection Facilities, Distribution Upgrades and Network Upgrades necessary to interconnect the Vernon Power Plant Expansion, (ii) the estimated cost of such required facilities and upgrades, and (iii) the estimated time to complete the required facilities and upgrades. CHAPTER 3 FACILITIES STUDY FEE AND SCHEDULE A study fee of $110,000 has been estimated for performing this Facilities Study. The final cost to complete this Facilities Study will be based on actual cost. CAISO will bill the City of Vernon the remaining balance of the actual cost higher than the $100,000 study deposit required per Section 8.1 of the LGIP. If the actual cost is less than the study deposit, CAISO will refund the balance to the City of Vernon. The study schedule will be determined upon the City of Vernon's selection of a 120- calendar day or 210-calendar day Facility Study/cost estimate option. Timeframe Activity March 27, 2007 • CAISO tenders a signed Facilities Study Agreement to the City of Vernon • CAISO receives executed Facilities Study Agreement from the City of Vernon, +30 CD $100,000 study deposit and required technical data +120 CD • CAISO issues draft Facilities Study Report to the City of Vernon (+/- 20% cost or +210 CD estimate); or • CAISO issues draft Facilities Study Report to the City of Vernon (+/- 10% cost estimate • CAISO receives written comments to draft report or written notice of no +30 CD comments from the City of Vernon +15 CD • CAISO issues Final Facilities Study Report to the City of Vernon INTERCONNECTION FACILITIES STUDY AGREEMENT —ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) 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 Project and the Point of Interconnection at Laguna Bell Substation, which do not include Distribution Upgrades or Network Upgrades, to accommodate the 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 Project. 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 Project. CHAPTER 5 - SITE VICINITY MAP VPP 304 MW """'Expansion LAGUNA PrO)@Ct BELL IN ToRS wPl.l F" CENTER LIGHTHIPENDONIDODEL AAH AMO LEWIS EACH J ARCO HINSON BARRE REDONDO LA FRESA LONG HARBORGEN BEACH _ (ti'%,�MITOS .�/ AES < NRG / DYNEGY ALAMITOS <% LONG BEACH HUNTINGTON BEACH AES HUNTINGTON BEACH NOT TO SCALE �� INTERCONNECTION FACILITIES STUDY AGREEMENT -ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) CHAPTER 6 = CONCEPTUAL ONE -LINE DIAGRAM 3 INTERCONNECTION FACILITIES STUDY AGREEMENT -ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) 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 Project are accurate and complete. 3) The maximum interconnection capacity requested by the Interconnection Customer is 304 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 Project 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. 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 the Proiect into Laguna Bell Substation: The scope of work and estimated cost 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, are contained in the Interconnection Facilities Study for the initial 610 MW Vernon Power Plant. E INTERCONNECTION FACILITIES STUDY AGREEMENT - ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) 2) Power Flow Analysis: Studies identified that the Project aggravated overloads of several SCE - owned transmission facilities under N-1 and N-2 conditions; however, the Project did not trigger these overloads. Overloads identified in the SIS that had also been identified in the VPP 610 MW Sensitivity Study were triggered by changes in system condition and configuration. SCE will evaluate the risk in the Annual Transmission Expansion Plan and propose upgrade projects as needed. The power flow analysis for a project ahead of the VPP Expansion Project ahead in queue (ISO Queue Position 88) has not yet been completed, and the associated overloads triggered by such project and the mitigation measures have not been identified. No overloads were identified on the 66-kV and lower voltage systems. 3) Post -Transient Power Flow Analysis: There were no post -transient power flow impacts identified with addition of the Project. 4) Transient Stability Analysis: The transmission system remained in operating equilibrium throughout all transmission contingencies with inclusion of the Project. Also the Project met the Low Voltage Ride -Through criterion. None of the Project 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: Single -line -to -ground and three -phase -to -ground results indicate that thirteen (13) circuit breakers have fault duties that increased by 0.1 kA from the pre -project case and exceeded their breaker fault duty of 60%. Prior projects ahead in queue, including the 610 MW Vernon Power Plant, trigger the need for 136 circuit breaker replacements or upgrades. 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. CHAPTER 10 - DETAILED FACILITIES STUDY WORK SCOPE & COST ESTIMATES The Facilities Study will provide the work scope and cost estimate of the Participating TO'S Interconnection Facilities, Distribution Upgrades and Network Upgrades to interconnect the Project. The preliminary work scope and non -binding cost estimate provided in the System Impact Study are as follows: INTERCONNECTION FACILITIES STUDY AGREEMENT — ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) A. Upgrades Triggered by the Project: The following elements are required exclusively for the additional 304 MW interconnection: Interconnection Reliability Distribution Element Facilities Upgrades._ Upgrades Total Cost Substations: Lighthipe Sub. - Upgrade thirteen 220 kV CBs - $1,584,000 - $1,584,000 B. Upgrades Triggered by Prior Projects in the Queue: 1. Projects Between the 610 MW VPP Project and the VPP Expansion Project: Interconnection Reliability Distribution Element Facilities Upgrades Upgrades Total Cost Substations: Center Sub. - Replace six 220kV CBs - $2,856,000 - $2,856,000 El Nido Sub. - Replace five - $2,380,000 220kV CBs - $2,380,000 Hinson Sub. - Replace four & Upgrade six 220kV CBs - $3,056,000 - $3,056,000 La Fresa Sub. - Upgrade one $144,000 - $144,000 220kV CBs - Lewis Sub. - Replace two - $952,000 220kV CBs - $952,000 Mesa Sub. - Replace twenty- three 220kV CBs - $7,548,000 - $7,548,000 Vincent Sub. -Replace four - $7,792,000 500kV CBs - $7,792,000 Mesa Sub. - Upgrade 220kV Switchyard to 80kA Rating- $15,000,000 - $15,000,000 TOTAL - $39,728,000 - $39,728,000 _�_.. The cost of upgrading the Mesa Sub 220kV Switchyard to twrw Rating is only do dpPIVA1111dcciy value based on an existing estimated prepared for a similar facility. Load flow studies for the project in ISO Queue Position 88 have not yet been completed. Mitigation measures for overloads triggered by such project and the associated estimated costs will be determined upon completion of the studies and included in the Project's Facilities Study. 111 INTERCONNECTION FACILITIES STUDY AGREEMENT —ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) 2e Facilities and Upgrades Triggered by the 610 MW VPP Project (As Identified in the 610 MW VPP Project Facilities Study): Element Interconnection Facilities Reliability Upgrades.... Distribution Upgrades Total Cost Substations: Laguna Bell Sub — reconfigure 220kV Switchyard& Install two 220kV Line Positions $500,000 $3,302,000 - $3,802,000 Laguna Bell — Replace sixteen 66kV CBs - - $3,008,000 $3,008,000 Laguna Belt Sub — Replace two 220kV CBs - $952,000 - $952,000 Mesa Sub — Upgrade four 220kV CBs - $864,000 - $864,000 Transmission Lines: Laguna Bell — VPP No.1 & No.2 220kV T/L's — Install Inside Laguna Bell Sub $1,966,000 - - $1 966 000 Goodrich — Laguna Belt 2200V T/L — Relocated within Laguna Belt Sub - $808,000 - $808,000 Sub -Transmission Lines: Underground eight Segments inside Laguna Bell Sub - - $4,138,000 $4,138,000 Telecommunications: I.T. Channels for Line Protection $413,000 - - $413,000 I.T. Channels for RTU $40,000 - - $40,000 Power System Control: RTU at VPP Gen. Facility — New Installation $49,000 $49,000 RTU at Laguna Bell Sub. - Upgrade - - $17,000 TOTAL $2'968,000:IL$7,146,000 $16,057,000 7 INTERCONNECTION FACILITIES STUDY AGREEMENT - ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) 3. Facilities and Upgrades Triggered by Projects Ahead of the 610 MW VPP Project (As Identified in the 610 MW VPP Project Facilities Study): Interconnection Reliability Distribution Element Facilities Upgrades Upgrades Total Cost Substations: Mesa - Upgrade one 220kV $89,000 - $89,000 Line Position - Etiwanda Gen. Sta. - Replace twenty four 220kV CBs - $15,096,000 - $15,096,000 La Fresa Sub. - Upgrade four $576,000 - $576,000 220kV CBs - Laguna Bell Sub. - Upgrade fourteen 220kV CBs - $1,296,000 - $1,296,000 Lugo Sub. - Replace three & Upgrade two 220kV CB's - $2,004,000 - $2,004,000 Mira Loma Sub. - Replace twelve 220kV CBs - $7,548,000 - $7,548,000 Pardee Sub. - Upgrade seven $1,296,000 - $1,296,000 220kV CBs - Redondo Gen. Sta. - Upgrade twelve 220kV CBs - $1,152,000 - $1,152,000 Vincent Sub. - Upgrade one $288,000 - $288,000 220kV CB - Etiwanda Gen. Sta. - Upgrade 220kV Switchyard to 80kA $15,000,000 - $15,000,000 Rating* - Mira Loma Sub. - Upgrade 220kV Switchyard to 80kA $15,000,000 - $15,000,000 Rating* - TOTAL - $59,345,000 - $59,345,000 r,h, on * The cost of upgrading the Etiwanda and Mira Loma suD ZLUKV 0wuUlydia tv vvn., approximately value based on an existng estimated prepared for a similar facility. The Facilities Study will also include an operational study to determine the facilities and upgrades required to be placed in-service before the Project's desired operating date. Such operational study will study the entire 914 MW 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. The SIS report indicates that the schedule for the transmission facilities would be the controlling element of the Project. All other elements are expected to be completed within a 30-month timeframe. M INTERCONNECTION FACILITIES STUDY AGREEMENT - ATTACHMENT C VERNON POWER PLANT EXPANSION (304 MW) 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. K SUPPORTING DOCUMENTS OFFICE OF THE CITY CLERK INTER -DEPARTMENT MEMORANDUM lilt DATE: April 16, 2007 TO: Donal O'Callaghan, Director of Light & Power FROM Nplly Giron, Acting City Clerk RE: Interconnection Facilities Study Agreement Vernon Power Plant Expansion Mr. O'Callaghan, For your transmittal, are three original agreements as referenced above, approved by Resolution No. 9300 at the Council Meeting held April 16, 2007. :ng cc: Resolution No. 9300 Agreement No.