Resolution No. 96241
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RESOLUTION NO. 9624
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ADOPTING AN AMENDMENT TO APPENDIX I OF THE
CITY'S TRANSMISSION OWNER TARIFF TO INCLUDE THE
CITY'S ESTIMATED GROSS LOAD FOR PURPOSES OF THE
CITY'S PARTICIPATION IN THE CALIFORNIA INDEPENDENT
SYSTEM OPERATOR
WHEREAS, the City of Vernon ("City") is a chartered municipal
corporation of the State of California that owns and operates a system
for the generation, purchase, transmission, distribution and sale of
electric capacity and energy; and
WHEREAS, the City is a Participating Transmission Owner
("PTO") with the California Independent System Operator ("ISO") and, as
such, has submitted its existing Transmission Owner Tariff ("TO
Tariff") to ISO and the Federal Energy Regulatory Commission ("FERC");
and
WHEREAS, the ISO reimburses the City according to the City's
current Transmission Revenue Requirement ("TRR") in return for the City
turning over to the ISO the operation and control of the City's
transmission entitlements; and
WHEREAS, on March 24, 2008, pursuant to City Council
Resolution No. 9562, the City adopted a new TRR and an amended TO
Tariff which reflected the City's divestiture of certain transmission
assets; and
WHEREAS, the ISO Tariff requires that each PTO's TO Tariff
include, within Appendix. I, a statement of the estimated Gross Load
used to develop the ISO's Transmission Access Charge ("TAC"); and
WHEREAS, Appendix I of the City's current TO Tariff, a copy
of which is attached hereto as "Exhibit 2" and made a part hereof, as
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adopted in Resolution No. 9562 does not state the estimated Gross Load
used in developing the ISO TAC; and
WHEREAS, it is appropriate for the City to amend Appendix I
of its current TO Tariff to state the estimated Gross Load used to
(develop the ISO TAC; and
WHEREAS, amending Appendix I of the City's current TO Tariff
to state the City's estimated Gross Load will neither change the City's
TRR nor change the City's electrical rates; and
WHEREAS, the Light & Power Department has calculated the
City's estimated Gross Load; and
WHEREAS, the Light & Power Department has prepared a Staff
Report with attached exhibits, dated May-14, 2008, a copy ofwhichis
attached hereto as "Exhibit 1" and made a part hereof, which explains
the calculation of the City's estimated Gross Load; and
WHEREAS, the Light & Power Department has recommended that
the City amend Appendix I of its current TO Tariff to state the City's
estimated Gross Load.
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
declares that amending Appendix I of the City's current TO Tariff to
include the City's estimated Gross Load will neither change the City's
TRR nor change the City's electrical rates.
SECTION 3: The City Council of the City of Vernon hereby
approves and adopts the amendment of Appendix I of the City's current
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TO Tariff, as described in the Staff Report prepared by the Light &
Power Department attached hereto as "Exhibit 1", and as depicted in the
attached "Exhibit 3", to include the City's estimated Gross Load.
SECTION 4: The City Council of the City of Vernon hereby
directs and authorizes the City Attorney to direct outside counsel, on
behalf of the City, to:
(a) file with the FERC and the ISO the appropriate
documents necessary to implement the amendment of Appendix I of the
City's TO Tariff to include the.City's estimated Gross Load;
(b) submit to the FERC and the ISO appropriate supporting
documentation, such as this City Council Resolution approving the
amendment of the City's TO Tariff and the Staff Report, in
substantially the form presented to the City Council.
SECTION 5: The 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 19th day of May, 2008.
Name: Leonis C . Malburg
Title: Mayor /
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that. the foregoing Resolution, being Resolution No. 9624, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, May 19, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
r
MANUELA G ONt City Clerk
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EXHIBIT 1
CITY OF. VERNON. LIGHT & POWER DEPARTMENT
STAFF REPORT REGARDING THE ADOPTION OF AN AMENDMENT
TO APPENDIX I OF THE CITY'S TRANSMISSION OWNER TARIFF
TO INCLUDE THE CITY'S ESTIMATED GROSS LOAD FOR
PURPOSES OF THE CITY'S PARTICIPATION IN THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR.
May 14, 2008
The City of Vernon is a Scheduling Coordinator and a Participating
Transmission Owner ("PTO") in the California Independent System Operator ("ISO")
The relationship between PTOs and the ISO is governed by a Transmission Control
Agreement ("TCA"), which sets forth specific duties and obligations of all PTOs.
One such duty, as set forth in the ISO's governing Tariff, is that each PTO must
include within its Transmission Owner Tariff ("TO Tariff") both a calculation of the
PTO's Transmission Revenue Requirement ("TRR") and the estimated Gross Load
used to calculate the TRR.
On March 24, 2008, pursuant to Resolution No. 9562, the City Council
approved and adopted a new TRR and an amended TO Tariff. The new TRR and
the amended TO Tariff reflected the City's sale of certain transmission assets,
specifically its share of the Mead -Phoenix Project ("MPP"), its share of the Mead-
Adelanto Project ("MAP") (collectively, the "Mead Projects") and its share of the
California -Oregon Transmission Project ("COTP"). The Mead Projects were sold to
Startrans I.O. LLC ("Startrans"), and the COTP was sold to the Transmission Agency
of Northern California ("TANC").
Pursuant to Resolution No. 9562, the City filed its amended TO Tariff with the
ISO and the Federal Energy Regulatory Commission ("FERC"). The City's revised
TRR, reflecting the sale of the Mead Projects and the COTP, was included in
Appendix I of the amended TO Tariff. However, the estimated Gross Load used to
develop the ISO's Transmission Access Charge ("TAC") was not included in
Appendix I. A.copy of Appendix I of the City's current TO Tariff is attached hereto as
"Exhibit 2".
Staff Report
TRBA.A 2008
Page 2 of 2
In order to fully comply with the ISO Tariff, and to minimize the threat of
continued litigation from other PTOs, it is in the City's best interest to amend
Appendix I of its TO Tariff to include the City's estimated Gross load.
Gross Load is the City's aggregate annual demand for electricity. The Light &
Power Department calculates and projects Gross Load as part of its normal
operations. The City's Gross Load for 2007, as measured by ISO -certified revenue
quality meters, was 1,288,684 MWh, and the data supporting the calculation of this
figure is attached hereto as "Exhibit 1-A". Using 2007 as the test year, consistent
with the calculation of the new TRR, the Light & Power Department estimates that
the City's Gross Load to be 1,288,684 MWh. A copy of Appendix I of the City's TO
Tariff, amended to include the City's estimated Gross Load, is attached hereto as
"Exhibit 3".
Amending Appendix I of the TO Tariff to include the City's estimated Gross
Load will not change the City's TRR and will not change the City's electricity rates.
RECOMMENDATIONS
1. Approve the amendment of Appendix I of the City's TO Tariff to include the
City's estimated Gross Load of 1,288,684 MWh, as depicted in attached
"Exhibit 3".
2. Approve the submission to the FERC and the'ISO of the appropriate filings
necessary to implement the amendment of Appendix I of the City's TO Tariff
to include the City's estimated Gross Load.
3. Approve the submission to the FERC and the ISO of the appropriate
supporting documentation, such as this Staff Report and the Resolution it
supports, in substantially the form presented to the City Council, necessary to
implement the amendment of Appendix I of the City's TO Tariff to include the
City's estimated Gross Load.
Exhibit 1-A
City of Vernon
Calendar Year 2007 Load Data
Month
MWh
January
101,547
February
95,123
March
107,881
April
105,681
May
113,596
June
113,861
July
112,173
August
116,854
September
108,132
October
110,980
November
104,271
December
98,584
Total
1,288,684
Exh
ibit 2
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $3,131,282.
The TRBAA is a negative $1,664,556 for calendar year 2008.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on: March 24, 2008 Resolution No. Effective: Upon Acceptance by the Commissior
Eight Revised Sheet No. 22
Superceding Seventh Revised Sheet No. 22
�z
Exhibit
3
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement $918,137.
The TRBAA is a negative $1,664,556 for calendar year 2008.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA-will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on:: March 24, 2008 Resolution No. Effective: Upon Acceptance by the Commission
and notification by Vernon
Ninth Revised Sheet No. 22
Superceding Eight Revised SheetNo. 22
EXHIBIT 2
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $3,131,282.
The TRBAA is a negative $1,664,556 for calendar year 2008.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
I
Authorized by City of Vernon
Ordinance No. 940
Issued on: March 24, 2008 Resolution No. Effective: Upon Acceptance by the Commission
Eight Revised Sheet No. 22
Superceding Seventh Revised Sheet No. 22
EXHIBIT 3
Transmission Owner Tariff (coat.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement $918,137.
The TRBAA is a negative $1,664,556 for calendar year 2008.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA-will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on:: March 24, 2008
Resolution No. Effective: Upon Acceptance by the Commission
and notification by Vernon
Ninth Revised Sheet No. 22
Superceding Eight Revised SheetNo. 22
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: May 28, 2008
TO: Donal O'Callaghan, Director of Light & Power
FROM, Nelly Giron, City Clerk
RE: Resolution No. 9624 - A Resolution of the City Council of
the City of Vernon Adopting an Amendment to Appendix I of
the City's Transmission Owner Tariff to Include the City's
Estimated Gross Load for Purposes of the City's
Participation in the California Independent System Operator
Transmitted herewith is a copy of Resolution No. 9624, referenced
above, which was approved by City Council on May 19, 2008.
Thank you.
NG:dr
c: Resolution File No. 9624
A.
OFFICE OF THE CITY ATTORNEY
Jeff A. Harrison, City Attorney
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811 Fax (323) 826-1438
May 19, 2008
VIA FEDERAL EXPRESS
Grace Su, Esq.
Kirkpatrick & Lockhart Preston Gates Ellis LLP
1601 K Street NW
Washington, DC 20006-1600
Re: Amended Appendix I to the Citv's TO Tariff
Dear Grace:
Enclosed please find for filing with FERC a certified copy of
Resolution No. 9624 adopting an amendment to Appendix I of the
City's Transmission Owner Tariff that was approved by the City
Council of the City of Vernon today.
If you have any questions, please contact me.
Very tru y yours,
A. Harrison
City Attorney
JH:j1
Enclosure
cc: Manuela Giron, City Clerk (w/o Encl.)-Resolution No. 9624
Exc(usively Industrial