Resolution No. 9767ON
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RESOLUTION NO. 9767
A RESOLUTION OF .THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE EXECUTION OF AN
AMENDED AND RESTATED METERED SUBSYSTEM AGREEMENT BY
AND BETWEEN THE CITY OF VERNON AND 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, on October 19, 2005, the City Council of the City
of Vernon adopted Resolution No. 8878 approving and authorizing the
execution of a Metered Subsystem Agreement ("MSSA") with the
California Independent System Operator ("CAISO"), which allowed the
City to convert from a Utility Distribution Company to a Metered
Subsystem, thereby changing the manner in which the CAISO regulates
the City's production and distribution of electricity; and
WHEREAS, the City has operated under the MSSA since it was
implemented on December 1, 2005; and
WHEREAS, the CAISO's impending Market Redesign and
Technology Upgrade ("MRTU") requires that the current MSSA be amended
in order to participate in the CAISO markets and schedule load and to
incorporate various changes associated with the MRTU; and
WHEREAS, the City's Light & Power Department, in
consultation with the CAISO, has drafted an amended and restated MSSA
that aligns the language of the current MSSA with the prospective
CAISO market design while maintaining the basic principals and
benefits of the current MSSA; and
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WHEREAS, since the amended MSSA provides that it will not be
effective until the MRTU is implemented, the City and CAISO will
continue to operate under the current MSSA until the MRTU is
Ilimplemented; and
WHEREAS, the Director of Light & Power has submitted a Staff
Report dated on or about November 4, 2008, recommending that the
proposed amendment to the MSSA be approved; and
WHEREAS, since the current MSSA will be obsolete when the
MRTU is implemented, and in order for the amended MSSA to be effective
on the date which CAISO implements the MRTU, the Director of Light &
Power executed the Amended and Restated Metered Subsystem Agreement
(the "Amended MSSA") on November 17, 2008, subject to ratification by
the City Council; and
WHEREAS, the City Council of the City of Vernon desires to
approve and ratify the actions of the Director of Light & Power in
executing the Amended MSSA on November 17, 2008; 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 the Amended MSSA.
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 has
considered the Staff Report dated on or about November 4, 2008, and
other testimony offered during an open meeting on November 24, 2008,
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regarding approval of the Amended MSSA.
SECTION 3: The City Council of the City of Vernon hereby
approves and ratifies the execution of the Amended MSSA by the
Director of Light & Power dated November 17, 2008, a copy of which is
attached hereto as Exhibit A and incorporated by reference, and
submittal to the Federal Energy Regulatory Commission, with the
understanding that the Amended MSSA will be effective on the date that
the MRTU is implemented by the CAISO.
SECTION 4: The City Council of the City of Vernon hereby
further finds and determines that the approval of the Amended MSSA is
necessary to allow the City to continue to effectively provide
electrical service to its customers and to maintain the basic
principles and benefits of the current MSSA.
SECTION 5: The City Council of the City of Vernon hereby
authorizes the Director of Light & Power to forward this Resolution
and any other document necessary to the Federal Energy Regulatory
Commission on behalf of the City of Vernon respecting the Amended
MSSA.
SECTION 6: 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 24th day of November, 2008.
ATS
MADftJEII GIRON, City lerk
Leonis C. Mal.burn
Name:
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. 9767, was
duly adopted by the City Council of the City of Vernon at regular
meeting of the City Council duly held on Monday, November 24, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
c
MANUELA GIRO ity Clerk
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EXHIBIT A
CITY OF VERNON MSS AGREEMENT
%of" A
ffiALIFORNIA INDEPENDENT SYSTEM
OPERATOR CORPORATION
AND
CITY OF VERNON
AMENDED & RESTATED
METERED SUBSYSTEM AGREEMENT
CITY OF VERNON MSS AGREEMENT
METERED SUBSYSTEM AGREEMENT
THIS AGREEMENT is dated this 17th day of November , 20 08 and is entered
into, by and between:
(1) The City of Vernon, a municipal corporation of the State of California, which
owns and operates a municipal electric utility system engaged in the Generation,
transmission, distribution, purchase and sale of electric power and Energy at
wholesale and retail, having its registered and principal place of business located
at 4305 Santa Fe Avenue, Vernon, California 90058 ("Vernon");
and
(2) California Independent System Operator Corporation, a California non-profit
public benefit corporation having its principal place of business located in such
place in the State of California as the CAISO Governing Board may from time to
time designate, initially 151 Blue Ravine Road, Folsom California 95630 (the
"CAISO").
Vernon and the CAISO are hereinafter referred to individually as "Party" or collectively
as the "Parties."
Whereas:
A. The City of Vernon is a municipal electric utility engaged in, among other things,
generating, transmitting and distributing electric power and Energy in the Vernon
Service Area;
B. The CAISO operates the CAISO Balancing Authority Area and is engaged in,
among other things, exercising Operational Control over certain electric
transmission facilities forming the CAISO Controlled Grid, including transmission
facilities and entitlements owned or controlled by Southern California Edison
Company (hereinafter referred to as "SCE") and Vernon, scheduling transactions
that utilize those transmission facilities and Entitlements, and operating certain
markets, including markets for Energy and Ancillary Services, pursuant to the
terms of the CAISO Tariff and has certain statutory obligations under California
law to maintain the reliability of the CAISO Controlled Grid, as well as certain
responsibilities mandated by the North American Electric Reliability Corporation
("NERC") and Western Electricity Coordinating Council ("WECC) or its
successor to ensure the reliable operation of the entire electric grid within the
CAISO Balancing Authority Area;
C. Vernon is a Local Publicly Owned Electric Utility under the Constitution of the
State of California and utilizes tax-exempt financing for one or more of its power
supply resources that restricts the amount of private use of such projects;
CITY OF VERNON MSS AGREEMENT
D. Vernon's System is within the CAISO Balancing Authority Area, is directly
interconnected to the SCE Distribution System, and is interconnected to the
CAISO Controlled Grid through the Laguna Bell -Vernon Interconnection Service
Agreement;
E. Vernon desires to continue to operate its generating resources, its transmission
and the distribution resources of Vernon's System in an integrated manner to
reliably serve Vernon's Loads and also desires, as or through a Scheduling
Coordinator, to submit Bids, including Self -Schedules, to use the CAISO
Controlled Grid and participate in the CAISO Markets as a buyer and a seller;
F. The Parties are entering into this Metered Subsystem Agreement ("Agreement")
in order to establish the terms and conditions on which (1) Vernon will operate
Vernon's Generating Units within the CAISO Balancing Authority Area; (2)
Vernon will, as or through its Scheduling Coordinator, submit Bids, including Self -
Schedules, into the CAISO Balancing Authority Area and participate in the
CAISO Markets; and (3) the Parties will meet their obligations under the CAISO
Tariff, as may be modified by this Agreement, in connection therewith;
G. Vernon desires the option to utilize Vernon's resources to follow Vernon's Load
and exports from its MSS;
H. The intent of the Parties is that any CAISO charges will be charged to Vernon's
Scheduling Coordinator based on the principle of cost causation, with due regard
for historic considerations, timing and transition issues, and other relevant
factors;
I. In order to maintain the reliability of the interconnected electric systems
encompassed by the WECC, the Parties are required to comply with the NERC
and WECC Reliability Standards, and the WECC RMS Agreement to the extent it
remains in effect, applicable to the functional entity types for which the Parties
are registered with NERC and WECC. Should any Party fail to meet its
respective obligations, such Party shall be.responsible for payment of any
monetary sanctions accessed against it in accordance with Section 10.4; and
J. The Parties acknowledge that the CAISO is responsible for the efficient use and
reliable operation of the CAISO Controlled Grid and the operation of the CAISO's
Balancing Authority Area consistent with achievement of planning and Operating
Reserve criteria no less stringent than those established by the WECC and
NERC and in accordance with the CAISO Tariff. The Parties acknowledge that
the CAISO may not be able to satisfy fully these responsibilities if parties to
agreements with the CAISO, including Vernon, fail to comply fully with all of their
obligations under those agreements. The Parties further acknowledge that
Vernon may not be able to satisfy fully its Native Load responsibilities in the
event the CAISO fails to comply fully with all of its obligations under this
Agreement and the CAISO Tariff.
CITY OF VERNON MSS AGREEMENT
NOW THEREFORE, in consideration of the mutual covenants set forth herein, THE
PARTIES AGREE as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
1.1 Master Definitions Supplement. Unless defined in the introduction or Section
1.2 of this Agreement, all terms used in this Agreement with initial capitalization
shall have the same meaning as those contained in Appendix A, the Master
Definitions Supplement to the CAISO Tariff.
1.2 Special Definitions for this Agreement. In this Agreement, the following terms
shall have the meanings set opposite them:
"Point of Delivery" means any point at which Vernon's System interfaces with
the CAISO Controlled Grid for transactions into CAISO Markets. The Point of
Delivery is described in Schedule 1.
"Point of MSS Interconnection" means any point at which Vernon's System is
interconnected with the CAISO Controlled Grid in the CAISO Balancing Authority
Area. The Point of MSS Interconnection is described in Section 4.1.
"Vernon's System" means all transmission facilities, distribution facilities and
Generating Units owned or controlled by Vernon on Vernon's side of the Points
of MSS Interconnection for its MSS, as listed in Schedule 1. A description of the
generating facilities and Point of MSS Interconnection facilities comprising
Vernon's System is set forth in Schedule 1.
1.3 Rules of Interpretation. The following rules of interpretation and conventions
shall apply to this Agreement:
(a) the singular shall include the plural and vice versa;
(b) the masculine shall include the feminine and neutral and vice versa;
(c) "includes" or "including" shall mean "including without limitation";
(d) references to a Section, Article or Schedule shall mean a Section, Article
or a Schedule of this Agreement, as the case may be, unless the context
otherwise requires;
(e) any reference to the CAISO Tariff or any provision of the CAISO Tariff will
mean a reference to the CAISO Tariff or provision then in effect as
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CITY OF VERNON MSS AGREEMENT
modified during the term of this Agreement, unless otherwise specifically
provided;
(f) unless the context otherwise requires, references to any law shall be
deemed references to such law as it may be amended, replaced or
restated from time to time;
(g) unless the context otherwise requires, any reference to a "person"
includes any individual, partnership, firm, company, corporation, joint
venture, trust, association, organization or other entity, in each case
whether or not having separate legal personality;
(h) unless the context otherwise requires, any reference to a Party includes a
reference to its permitted successors and assigns;
(i) any reference to a day, week, month or year is to a calendar day, week,
month or year; and
(j) the captions and headings in this Agreement are inserted solely to
facilitate reference and shall have no bearing upon the interpretation of
any of the terms and conditions of this Agreement.
CITY OF VERNON MSS AGREEMENT
ARTICLE II
TERM AND TERMINATION
2.1 Effective Date. This Agreement shall be effective as of the later of: (1) the date
this Agreement is accepted for filing and made effective by FERC, or (2) the date
the version of the CAISO Tariff implementing the CAISO's Market Redesign and
Technology Upgrade ("MRTU") market design becomes effective, and shall
remain in full force and effect until terminated pursuant to Section 2.2, or upon
such other date as the Parties shall mutually agree. If MRTU has become
effective but this Agreement has not yet been made effective by FERC, the
Parties will use the terms of this Agreement to interpret and implement the
version of the CAISO Tariff implementing MRTU and the terms of the existing
Metered Subsystem Agreement, to effectuate the intention of the Parties until
such time as this Agreement is made effective by FERC. Upon the effective date
of this Agreement, all prior versions will be superseded, provided that if this
Agreement has become effective, but the CAISO exercises its rights under
Section 44 of the CAISO Tariff and returns its operations and settlements to the
pre-MRTU ISO Tariff, the Parties will use the terms of the version of the Metered
Subsystem Agreement in existence prior to this Agreement during such period
that the CAISO returns to the previously effective ISO Tariff to interpret and
implement the pre-MRTU ISO Tariff, except that the updated version of Schedule
17 attached to this Agreement will remain in effect.
2.2 Termination
2.2.1 Termination by Default. Either Party (the terminating Party) may terminate this
Agreement by giving written notice of termination in the event that the other Party
(the defaulting Party) commits any default under this Agreement or the applicable
provisions of the CAISO Tariff which, if capable of being remedied, is not
remedied within 30 days after the terminating Party has given the defaulting
Party written notice of the default, unless excused by reason of Uncontrollable
Forces under Article XVIII.
2.2.2 Termination on Notice. Either Party shall have the right to terminate this
Agreement in accordance with this Section 2.2.2, subject to the procedural
requirements set forth in Section 2.2.3. Either Party may terminate this
Agreement by giving the other Party written notice at least six (6) months in
advance of the intended effective date of termination.
2.2.3 Filing. With respect to any notice of termination given pursuant to this Section
2.2, the CAISO must file a timely notice of termination with FERC. The filing of
the notice of termination by the CAISO will be considered timely if: (1) the
request to file a notice of termination is made after the preconditions for
termination set forth in Sections 2.2.1 or 2.2.2 have been met, and (2) the CAISO
files the notice of termination within 30 days of receipt of such request from
Vernon or issuance of its own notice of termination. If the CAISO fails to make a
CITY OF VERNON MSS AGREEMENT
filing with the FERC of a notice of termination requested by Vernon within 30
days of the Vernon request, Vernon may bring a complaint at the FERC for a
FERC determination. This Agreement shall terminate upon the date on which
the notice of termination is permitted by FERC to become effective.
ARTICLE III
GENERAL TERMS AND CONDITIONS
3.1 Scope of Agreement. Except as specifically provided otherwise, the provisions
of this Agreement will apply only with respect to the facilities comprising Vernon's
System and to Loads and Generating Units that comprise or are directly
connected only to Vernon's System. Subject to the terms of Article II, this
Agreement shall not affect Vernon's ability to join or establish another Balancing
Authority Area or Vernon's right to exercise any available legal recourse to obtain
or confirm that it possesses other forms of transmission rights.
3.2 [NOT USED]
3.3 Relationship Between Agreement and CAISO Tariff
3.3.1 If and to the extent a matter is specifically addressed by a provision of this
Agreement (including any schedules or other attachments to this Agreement), the
provision of this Agreement shall govern notwithstanding any inconsistent
provision of the CAISO Tariff.
3.3.2 If and to the extent this Agreement provides that a matter shall be determined in
accordance with the applicable provisions of the CAISO Tariff, the applicable
provisions of the CAISO Tariff shall govern.
3.3.3 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of the Metered Subsystem, comply with the requirements applicable to Metered
Subsystems under Section 4.9 of the CAISO Tariff and all other provisions of the
CAISO Tariff governing Metered Subsystems including but not limited to Sections
31.5, 34.12 and 36.10 of the CAISO Tariff.
3.3.4 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of any of the Generating Units listed in Schedule 14, comply with the
requirements applicable to Participating Generators under Section 4.6 of the
CAISO Tariff and all other provisions of the CAISO Tariff governing Participating
Generators. Nothing in this Agreement shall obligate Vernon to execute a
Participating Generator Agreement with respect to any Vernon Generating Units.
3.3.5 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of any Load listed in Schedule 14, comply with the requirements applicable to
Participating Loads under Section 4.7 of the CAISO Tariff and all other provisions
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CITY OF VERNON MSS AGREEMENT
of the CAISO Tariff governing Participating Loads. Nothing in this Agreement
shall obligate Vernon to execute a Participating Load Agreement with respect to
any Vernon Load.
3.3.6 Except as provided in Section 3.3.1, Vernon shall, with respect to the operation
of the distribution facilities of Vernon's System, comply with the requirements
applicable to Utility Distribution Companies under Section 4.4 of the CAISO
Tariff. Nothing in this Agreement shall obligate Vernon to execute a UDC
Operating Agreement.
3.3.7 The applicability of any provision of the CAISO Tariff to Vernon, including as
provided in Sections 3.3.1 through 3.3.6, inclusive, shall, in the event of a dispute
between the Parties, be determined through the CAISO ADR Procedures in
accordance with Article 13 of the CAISO Tariff.
3.3.8 So long as Vernon remains a Participating TO, Vernon shall comply with the
requirements applicable to Participating TOs under Section 3.4 of the CAISO
Tariff.
3.3.9 This Agreement shall serve, with respect to Vernon, as the written agreements
required by Sections 4.4.1, 4.6, 4.7, and 10.1.4, of the CAISO Tariff.
3.4 Amendment to Agreement
3.4.1 Vernon and the CAISO shall retain all rights under Section 206 of the Federal
Power Act, Except with respect to the CAISO's rights set forth in Section 3.4.2 of
this Agreement and the Parties' rights under Section 206 of the Federal Power
Act, this Agreement may be modified only by mutual written agreement between
the Parties. Amendments that require FERC approval shall not take effect until
FERC has accepted such amendments for filing and made them effective.
3.4.2 The CAISO shall have the right to apply unilaterally under Section 205 of the
Federal Power Act to change the rates, terms, and conditions under this
Agreement for services provided to Vernon. In proposing any changes, unless in
response to a FERC order as provided in Section 3.7, the CAISO will consider
the principles in this Agreement as detailed in Section 3.5.2. Additionally, unless
in response to a FERC order as provided in Section 3.7, any changes proposed
by the CAISO shall be subject to the following:
3.4.2.1 The CAISO shall provide Vernon written notice of such CAISO proposed
change, no fewer than 30 days in advance of the filing by the CAISO for such
proposed change.
3.4.2.2 The CAISO shall meet and confer with Vernon regarding the change,
provided that the scheduling of such meeting shall not be unreasonably
delayed.
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CITY OF VERNON MSS AGREEMENT
3.4.2.3 Vernon's representative designated in Schedule 17 may, at Vernon's sole
option, waive in writing these requirements upon written request by the
CAISO.
3.4.2.4 The CAISO shall provide Vernon with a copy of the FERC filing if, and when,
made.
3.4.3 In addition to changes that may otherwise be contemplated by Section 3.6 or
Section 3.7, the Parties recognize that the CAISO's responsibilities and
operations, as set forth in the CAISO Tariff, and Vernon's responsibilities and
operations may change during the term of this Agreement. The Parties agree
that, in the event any such change substantially affects the allocation of rights,
responsibilities and obligations between the Parties under this Agreement, the
.Parties, while continuing to honor the terms and conditions of this Agreement, will
make good faith efforts to negotiate an appropriate amendment to this
Agreement and shall endeavor in that process to restore that allocation.
Schedules to this Agreement may be revised by agreement of the authorized
representatives of the Parties designated in Schedule 17. Revisions to
Schedules other than with regard to the contact information in Schedules 6 and
17 shall be filed by the CAISO with FERC.
3.5 Amendment to CAISO Tariff
3.5.1 Nothing in this Agreement shall affect in any way the authority of the CAISO to
modify unilaterally the CAISO Tariff in accordance with Section 15 of the CAISO
Tariff or of the CAISO and Vernon to exercise their rights under the Federal
Power Act or any other law, or to pursue any legal remedies.
3.5.2 In making amendments to the CAISO Tariff as provided in Section 3.5.1, the
CAISO will consider the impact on Metered Subsystems and the principles
reached in this Agreement, including but not limited to:
3.5.2.1 Cost Causation: The intent of the Parties is that CAISO charges will be
charged to Vernon or Vernon's Scheduling Coordinator based on the principle
of cost causation, with due regard for historic considerations, timing and
transition issues, and other relevant factors.
3.5.2.2 Load Following Capability: Vernon desires the option to elect to implement
Load following capability, through its Scheduling Coordinator, to follow
Vernon's Load and exports from its MSS with Vernon's resources and imports
into its MSS approved in advance by the CAISO as not causing an undue
operational burden, including not having the potential to exacerbate
Congestion or otherwise adversely affect reliable operation of the CAISO
Balancing Authority Area, and to make economic resource decisions with the
resources in Vernon's portfolio.
CITY OF VERNON MSS AGREEMENT
3.5.2.3 Compatibility of Market Participants: For efficient use of transmission facilities
and to decrease Congestion, the CAISO desires that all Market Participants
operate using similar rules and scheduling timelines.
3.5.2.4 Private Use Restrictions: One or more of Vernon's power supply resources
has been financed with tax-exempt bonds, which bond indenture requires
limitations on operational control of such resource.
3.6 Changes to CAISO Markets. To the extent possible, and consistent with the
principles of Section 3.5.2, any subsequent changes to the CAISO Markets that
impact Metered Subsystems will be incorporated in this Agreement. If
components of the CAISO Markets design are not known until after the execution
of this Agreement, the Parties agree to amend this Agreement in accordance
with Sections 3.4 and 3.5.2.
3.7 Changes to Conform to FERC Orders. Nothing in this Article III shall be
interpreted to limit the CAISO's right to modify the CAISO Tariff or this
Agreement to comply with or conform to any FERC order.
3.8 Facilities Financed by Local Furnishing Bonds or Other Tax -Exempt Bonds.
This Section 3.8 applies only to facilities which are under the Operational Control
of the CAISO and are owned by a MSS Operator with Local Furnishing Bonds or
other tax-exempt bonds. Nothing in this Agreement shall compel (and the
CAISO is not authorized to request) any MSS Operator with Local Furnishing
Bonds, or other tax-exempt bonds, to violate restrictions applicable to facilities
which are part of a system that was financed in whole or in part with Local
Furnishing Bonds or other tax-exempt bonds.
ARTICLE IV
INTERCONNECTION
4.1 Points of MSS Interconnection. The Points of MSS Interconnection are
described in Schedule 1. Additional Points of MSS Interconnection may be
established only by mutual agreement of the Parties, which agreement shall not
be unreasonably withheld.
4.2 Interconnection Operation Standards. The CAISO and Vernon shall maintain
stable established operating parameters and control power and reactive flow
within standards stated in Schedule 2.
4.3 Operation, Maintenance, and Load Serving Responsibilities. Vernon shall
operate and maintain all facilities under Vernon control forming any part of
Vernon's System, and shall be responsible for the supply, including any
purchases, of the Energy and Ancillary Services required to reliably provide
electric service to the Loads connected to Vernon's System in accordance with
A
CITY OF VERNON MSS AGREEMENT
Applicable Reliability Criteria, including WECC and NERC Reliability Standards
and criteria.
4.4 Expansion, Retirement, and Modification of Facilities. Vernon shall
coordinate with the CAISO in the planning and implementation of any expansion,
retirement, or modification of those facilities forming parts of Vernon's System
that are identified in Schedule 1, replacements for such facilities, and other
facilities forming parts of Vernon's System that serve similar functions or that
otherwise will or may significantly affect the Points of MSS Interconnection, and
shall provide sufficient advance notice to enable the CAISO to conduct any
necessary studies. To the extent the CAISO determines studies are required,
those studies will be performed in a reasonable period of time. The Parties will
amend Schedule 1, as necessary, should a new Point of MSS Interconnection be
established in accordance with Section 4.1.
4.5 Installation of Facilities and Rights of Access
4.5.1 Pursuant to Schedule 3, the Parties shall permit one another, on reasonable
notice and with mutual agreement in each case, to install equipment or have
installed equipment or other facilities on the property of the other Party to enable
the installing Party to meet its service obligations, unless doing so would
negatively impact the reliability of service provided by the owning Party. Unless
otherwise agreed, all costs of installation shall be borne by the installing Party.
4.5.2 A Party installing equipment on the property of the other Party shall be granted,
free of charge, reasonable rights of access to inspect, repair, maintain and
upgrade that equipment. Access shall be provided only on prior notice and such
access shall not be unreasonably withheld.
4.5.3 Notwithstanding any other provision in this Section 4.5, Vernon shall provide the
CAISO with access for inspection or audit, to any equipment or other facilities of
Vernon's System, the operation of which affects any Point of MSS
Interconnection or the CAISO Controlled Grid. Vernon will allow access during
normal working hours with no prior notice. For access during times outside of
normal working hours, the CAISO shall provide Vernon with one (1) Business
Day advance notice. A shorter advance notice time may be attained subject to
mutual agreement of the Parties representatives.
ARTICLE V
OPERATIONS
5.1 Outages
5.1.1 Vernon shall coordinate Outages of its Generating Units and of transmission
facilities, including the Points of MSS Interconnection, constituting parts of
Vernon's System with the owners of the transmission or distribution facilities with
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CITY OF VERNON MSS AGREEMENT
which Vernon's System is interconnected so that each of those owners can take
those Outages into account in coordinating maintenance of its transmission
facilities with the CAISO in accordance with the CAISO Tariff.
5.1.2 Vernon shall schedule with the CAISO on an annual basis pursuant to Schedule
4, with updates submitted as required under CAISO Tariff Section 9.3.6, any
Maintenance Outages of the equipment included in Schedule 1, and shall
coordinate the Outage requirements of Vernon's System with the Participating
TO with which Vernon's System is interconnected.
5.1.3 Notwithstanding anything to the contrary in this Agreement, to the extent required
by any valid law, regulation or order issued by any state or federal authority
having jurisdiction over Vernon or Vernon's System, which law, regulation or
order applies to entities that have executed a written undertaking required by
Section 4.6 of the CAISO Tariff, Vernon shall coordinate Outages of its
Generating Units, and of transmission facilities constituting parts of Vernon's
System, with the CAISO, pursuant to any generally applicable program i
established by the CAISO to implement such law, regulation or order.
5.2 Safety and Reliability. Vernon shall operate and maintain Vernon's System in
accordance with applicable safety standards and Reliability Standards pursuant
to WECC and NERC requirements, regulatory requirements, operating
guidelines, and Good Utility Practice so as to avoid any material unplanned -for
adverse impact on the CAISO Controlled Grid. The CAISO shall operate and
maintain the CAISO Controlled Grid and the operation of the CAISO Balancing
Authority Area in accordance with applicable Reliability Standards pursuant to
WECC and NERC requirements as applicable, regulatory requirements,
operating guidelines, and Good Utility Practice so as to avoid any material
unplanned -for adverse impact on Vernon's System. Without limiting the
foregoing, Vernon shall operate and maintain Vernon's System, during normal
and System Emergency conditions, in compliance with the requirements
applicable to Utility Distribution Companies in the CAISO Operating Procedures
and standards. In the event any such CAISO Operating Procedure or standard is
revised to modify the requirements applicable to Utility Distribution Companies,
the Parties shall comply with such revision.
5.3 Critical Protective Systems. Vernon will coordinate with the CAISO, SCE, and
any Generators on Vernon's System to ensure that CAISO Controlled Grid
Critical Protective Systems, including relay systems and other systems described
in Schedule 5, are installed and maintained in order to function in a coordinated
and complementary fashion with protective devices installed by Vernon, SCE,
and Generators. Vernon shall notify the CAISO as soon as is reasonably
possible of any condition that it becomes aware of that may compromise or affect
the operating safety and reliability of the CAISO Controlled Grid Critical
Protective Systems, including the systems described in Schedule 5.
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CITY OF VERNON MSS AGREEMENT
5.4 Single Point of Contact. Vernon shall provide a single point of contact and
maintain and operate a control center that is staffed "at all hours" and shall,
together with the CAISO, establish appropriate communications facilities and
procedures between Vernon's control center and the CAISO Control Center. The
initial points of contact are set forth in Schedule 6. A Party's representative must
update the information in Schedule 6 as the information changes. Changes to
Schedule 6 shall not constitute an amendment to this Agreement.
5.5 Transmission Losses, Outages, and Congestion. Vernon shall be
responsible for transmission losses within Vernon's System and to any Points of
Delivery. The CAISO is not responsible for transmission line Outages and
transmission Congestion within Vernon's System and at the Points of MSS
Interconnection as specified in CAISO Tariff Section 4.9.4.6. Congestion within
Vernon's System will be managed in accordance with the CAISO Tariff, including
CAISO Tariff Section 31.3.3.
ARTICLE VI
INFORMATION SHARING
6.1 Forecasts. Vernon shall provide to the CAISO annually its ten-year forecasts of
the MSS Demand growth, internal Generation, and expansions of or
replacements for those transmission facilities that are part of Vernon's System
identified in Schedule 1 and other transmission facilities that are part of Vernon's
System that serve similar functions or that otherwise will or may significantly
affect any Point of MSS Interconnection. Such forecast shall be provided on the
date that Utility Distribution Companies are required to provide similar forecasts
and shall be provided in accordance with the CAISO Tariff and the Business
Practice Manual for the Transmission Planning Process. Peak MSS Demand
Forecasts for Vernon's System shall be submitted by Vernon's Scheduling
Coordinator in accordance with the CAISO Tariff and the Business Practice
Manual for Market Instruments, and biannually as part of the CAISO's summer
and winter assessment process as agreed by the Parties.
6.2 System Surveys and Inspections. Vernon and the CAISO shall cooperate to
perform system surveys and inspections of facilities at or near the Points of MSS
Interconnection that may significantly affect the facilities of the other Party.
6.3 Maintenance Schedules. Vernon shall provide the CAISO on an annual basis
with a schedule of planned maintenance of those Generating Units identified in
Schedule 1, in accordance with Schedule 4. Vernon and the CAISO shall also
maintain records of the Maintenance Outages scheduled by Vernon on such
facilities and their actual duration. Vernon shall coordinate maintenance of its
transmission facilities with the CAISO'in accordance with the Transmission
Control Agreement. Should Vernon withdraw any of its transmission facilities
from CAISO Operational Control pursuant to the Transmission Control
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CITY OF VERNON MSS AGREEMENT
Agreement, it shall coordinate maintenance of its transmission facilities within the
CAISO Balancing Authority Area with the CAISO in accordance with this
Agreement.
6.4 Reliability Information. Vernon and the CAISO shall each have the obligation
to inform the other Party, as promptly as possible, of any circumstance of which it
becomes aware (including, but not limited to, abnormal temperatures, storms,
floods, earthquakes, and equipment depletions and malfunctions and deviations
from Registered Data and operating characteristics) that is reasonably likely to
threaten the reliability of the CAISO Controlled Grid or the integrity of Vernon's
System respectively. Vernon and the CAISO each shall also inform the other
Party as promptly as possible of any incident of which it becomes aware
(including, but not limited to, equipment Outages, over -loads or alarms) which, in
the case of Vernon, is reasonably Likely to threaten the reliability of the CAISO
Controlled Grid, or, in the case of the CAISO, is reasonably likely to adversely
affect Vernon's System. Such information shall be provided in a form and
content which is reasonable in all the circumstances, sufficient to provide timely
warning to the other Party of the potential threat and, in the case of the CAISO,
not unduly discriminatory with respect to the CAISO's provision of similar
information to other entities.
6.5 Major Outage Reports. Vernon shall promptly provide such information as the
CAISO may reasonably request concerning Vernon's operation of Vernon's
System to enable the CAISO to meet its responsibility under the CAISO Tariff to
conduct reviews and prepare reports following major Outages. Where
appropriate, the CAISO will provide appropriate assurances that the
confidentiality of commercially sensitive information shall be protected. The
CAISO shall have no responsibility to prepare reports on Outages that affect
customers on Vernon's System, unless the Outage also affects customers
connected to the system of another entity within the CAISO Balancing Authority
Area. Vernon shall be solely responsible for the preparation of any reports
required by any governmental entity or the WECC with respect to any Outage
that affects solely customers on Vernon's System.
6.6 Annual Reviews and Reports
6.6.1 The CAISO shall make available to Vernon any public annual reviews or reports
regarding performance standards, measurements or incentives relating to the
CAISO Controlled Grid that the CAISO makes available to MSS Operators and
Participating TOs.
6.6.2 Vernon shall make available to the CAISO any public annual reviews or reports
regarding performance standards, measurements or incentives relating to
Vernon's System that may affect the CAISO Balancing Authority Area.
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CITY OF VERNON MSS AGREEMENT
6.6.3 The CAISO and Vernon shall jointly develop any necessary forms and
procedures for collection, study, treatment, and transmittal of system data,
information, reports and forecasts.
6.7 Vernon shall cause to be installed and cause to be maintained direct telemetry
links from facilities comprising Vernon's System including to the CAISO's EMS
system to provide real-time data to the CAISO, subject to any exemption
available in accordance with the CAISO Tariff. Such data points may include
without limitation: output of Generating Units under Vernon control; and Vernon's
power flows at the Vernon Points of Delivery; and bus voltages at each
Generating Unit. With regard to Generating Units in the CAISO Balancing
Authority Area in which Vernon has an entitlement over which Vernon does not
have legal authority to exercise control, Vernon shall, at a minimum, support the
installation and maintenance of direct telemetry links to the CAISO's EMS system
from those Generating Units before the appropriate bodies of the projects
pursuant to the individual project agreements to the full extent allowed by such
agreements and applicable laws and regulations. Additional data points to be
transmitted to the CAISO EMS system will be as mutually agreed by the CAISO
and Vernon representatives.
ARTICLE VII
EMERGENCY OPERATIONS
7.1 In General.
Except with respect to Sections 7.4.1, 7.4.4, 7.4.5, 7.5.1, and 7.5.2, or unless
Vernon is short of resources to meet its forecasted MSS Demand and exports, as
determined in accordance with Section 7.7.11.4 of the CAISO Tariff, the terms of
this Article VII shall only apply during a System Emergency that is not a result of
a deficiency of resources, to serve Loads in the CAISO Balancing Authority Area
but instead occurs due to operating contingencies, which may include but not be
limited to forced loss of resources and/or transmission components or may
otherwise be caused by an Uncontrollable Force. In the event a System
Emergency occurs or the CAISO determines that a System Emergency is
threatened or imminent, Vernon shall, in accordance with Section 7.7.2 of the
CAISO Tariff and Good Utility Practice: (a) comply with all directions from the
CAISO concerning the management and alleviation of a threatened or actual
System Emergency, which may include shutting down or starting a Generating
Unit, altering the scheduled delivery of Energy or Ancillary Services throughout
the CAISO Balancing Authority Area, or disconnecting Vernon Load; and (b)
comply with all procedures concerning System Emergencies set out in Vernon's
Electric Emergency Plan ("EEP"), CAISO applicable Business Practice Manuals,
and CAISO Operating Procedures, in accordance with the applicable provisions
of this Agreement. Without limiting the generality of the foregoing:
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CITY OF VERNON MSS AGREEMENT
7.1.1 When requested by the CAISO subsequent to the declaration by the CAISO of
an alert regarding a threatened or imminent System Emergency in accordance
with the CAISO's Operating Procedure applicable to System Emergencies, in the
event Vernon has chosen not to follow its Load in accordance with Section 4.9.13
of the CAISO Tariff, and otherwise during a System Emergency, Vernon shall
operate all of its Generating Units listed in Schedule 14 to supply the CAISO with
generating capacity and/or Energy that can be made available by those
Generating Units in order to make available as much generating capacity and/or
Energy as possible to the CAISO during the term of any System Emergency,
consistent with: (a) maintaining an adequate Supply of Energy to serve Loads on
Vernon's System, other than in accordance with Section 7.4 of this Agreement;
and (b) due consideration for Vernon obligations specified in the EEP attached to
Schedule 11 or limitations specified in Schedule 14 resulting from, but not
necessarily limited to: (1) licenses/permits related to Generating Units (including
air emission constraints), (2) water release constraints imposed by regulatory
agencies, (3) internal policies related to fuel and contract management, and (4)
abnormal Generating Unit and transmission maintenance, provided that Vernon
shall provide the CAISO with advance notice of any changes to the limitations in
Schedule 14 that Vernon's obligations impose on the operation of its Generating
Units, and any changes agreed to by the CAISO shall be amendments to this
Agreement. For that purpose, Vernon shall provide the CAISO with any change
in Schedule 14 with regard to the limitations on the operation of its Generating
Units. Vernon shall provide the CAISO updates regarding the status of the
limitations in Schedule 14 promptly whenever it becomes aware of factors that
affect such limitations, provided that updates shall be provided at least quarterly
and no updates may be provided later than the deadline for the submission by
other Generators of changes in limitations on the operation of Generating Units,
which is the deadline for the submission of Bids into the Real -Time Market,
except when a change is due to a Forced Outage. In making as much
generating capacity and/or Energy available that can be made available by its
Generating Units to the CAISO as possible for use subsequent to the declaration
by the CAISO of an alert regarding a threatened or imminent System Emergency
in accordance with the CAISO's Operating Procedure applicable to System
Emergencies and during System Emergency conditions, subject to the foregoing,
Vernon shall:
7.1.1.1 Schedule, reschedule, Bid and operate, to the maximum extent possible, the
Generating Units listed in Schedule 14, up to the limitations set forth in
Section 2 of Schedule 14, and, to the extent possible, other Vernon resources
within and outside the CAISO's Balancing Authority Area to maximize the
amount of generating capacity and/or Energy available that can be made
available by those Generating Units and other resources to the CAISO; and
,7.1.1.2 Reschedule Maintenance Outages of equipment and facilities, including
Generating Units and facilities which impact the operation of Generating
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CITY OF VERNON MSS AGREEMENT
Units, to maximize the amount of generating capacity and/or Energy available
that can be made available by those Generating Units to the CAISO.
7.1.2 In the event that the CAISO issues a Dispatch Instruction, including an
Exceptional Dispatch Instruction, that contravenes the Vernon EEP attached to
Schedule 11 or any limitation set forth in Schedule 14 duly communicated in
accordance with Section 7.1.1, Vernon or its Scheduling Coordinator shall not be
required to follow that instruction, although it may consent to do so in a particular
case (without prejudice to Vernon's right to direct its Scheduling Coordinator to
decline any such instructions thereafter). If Vernon or its Scheduling Coordinator
chooses not to follow such an instruction, it shall notify the CAISO as soon as
possible that it will not follow the Dispatch Instruction, including an Exceptional
Dispatch Instruction, due to the previously communicated limitation.
7.1.3 Vernon's Scheduling Coordinator shall receive compensation for generating
capacity and/or Energy supplied in response to System Emergency Dispatch
Instructions, including Exceptional Dispatch Instructions, issued by the CAISO in
accordance with the CAISO Tariff.
7.1.4 During a System Emergency, the CAISO and Vernon shall communicate through
their respective control centers and in accordance with procedures established in
this Agreement and the CAISO Tariff.
7.1.5 Notwithstanding anything to the contrary in Articles V, VII, VIII, IX, or X of this
Agreement, or any CAISO Tariff provision, Vernon shall not be expected or
required to curtail Load or offer to the CAISO generating capacity or Energy from
its Generating Units in a System Emergency that is due to the failure of other
Load Serving Entities to provide resources adequate to serve Load and maintain
Operating Reserves in accordance with the CAISO Tariff or meet the credit
requirements of Section 12 of the CAISO Tariff.
7.1.5.1 Nothing in this Section 7.1.5 or this Agreement is intended to affect Vernon's
obligation to comply with any market mitigation requirement, including any
must -offer requirement that the FERC may impose on MSS Operators.
7.2 Notice. When a System Emergency occurs, the CAISO shall notify Vernon's
control center as part of the process by which it notifies all Utility Distribution
Companies and MSS Operators of System Emergency conditions. Details of the
notification process are set forth in Schedule 7.
7.3 Records. Vernon and the CAISO shall maintain all appropriate records with
respect to operations during a System Emergency in accordance with the CAISO
Tariff.
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CITY OF VERNON MSS AGREEMENT
7.4 Load Shedding
7.4.1 Automatic Load Shedding. Vernon shall implement and have at all times
operational an automatic Underfrequency Load Shedding ("UFLS") program, or
shall be included in another MSS's or UDC's WECC-compliant UFLS program,
as described in Schedule 8, and any undervoltage relay protection program that
may be described in Schedule 9.
7.4.2 Manual Load Shedding Priorities. Section 7.7.11.4 of the CAISO Tariff
provides that the CAISO will determine each UDC or MSS that has insufficient
resources to meet its forecasted Demand in accordance with the CAISO
forecast. If Load Shedding is required solely due to insufficient resources to
meet Load and/or inability to meet Operating Reserve obligations (as defined by
WECC or its successor and implemented by the CAISO), as determined in
accordance with Section 7.7.11.4 of the CAISO Tariff, and only if Vernon is short
of resources to meet its forecasted Demand and exports, as determined in
accordance with Section 7.7.11.4 of the CAISO Tariff, will Vernon be required to
shed Load, as directed by the CAISO. Vernon shall provide the CAISO with
detailed real time information, in graphical or tabular format for those contracts
and resources that do not have direct telemetry, demonstrating its full resource
sufficiency during any time that the CAISO interrupted firm Load within the
CAISO Balancing Authority Area or during which time an CAISO direction to
interrupt firm Load was in force, like other MSS Operators and UDCs seeking
similar exclusion from firm Load Shedding obligations, and Vernon and its
Scheduling Coordinator shall be subject to the provisions of Section 7.7.11.4 of
the CAISO Tariff for any failure to make such demonstration.
7.4.3 Manual Load Shedding. When called upon to do so by the CAISO in
accordance with Section 7.4.2 to avert, manage, or alleviate a System
Emergency, Vernon shall implement the manual Load Shedding program
described in Schedule 10. The CAISO shall notify Vernon when conditions exist
that would require Vernon to implement the Load curtailment and Interruptible
Load programs described in Schedules 10, 10A, and 10B. Subject to the
provisions of Sections 7.1.2 and 7.4.2, if the CAISO determines that manual
Load curtailment is required to manage a System Emergency, the CAISO shall
determine the amount and location of Load to be reduced and, to the extent
practicable, shall allocate a portion of the required Demand reduction to Vernon
and each UDC and MSS Operator based on the ratio of its Demand at the time
of the CAISO Balancing Authority Area annual peak Demand for the previous
year to total CAISO Balancing Authority Area annual peak Demand for the
previous year, taking into account system considerations and Vernon's
curtailment rights.
7.4.4 Load Restoration. Load shed in accordance with Section 7.4.1, 7.4.2, and 7.4.3
of this Agreement shall be restored pursuant to Schedule 12.
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CITY OF VERNON MSS AGREEMENT
7.4.5 The CAISO shall use reasonable efforts to coordinate Vernon's Underfrequency
Load Shedding program with the Underfrequency Load Shedding programs of
other MSS Operators and Utility Distribution Companies, and the implementation
of all such other programs, so that no one entity bears a disproportionate share
of Underfrequency Load Shedding in the CAISO Balancing Authority Area.
Vernon warrants that its UFLS program does and will continue to fully adhere to
the applicable WECC plans and requirements governing such programs, in
accordance with Schedule 8.
7.4.6 To the extent Vernon reduces Vernon's System Load in response to a System
Emergency, it shall exercise its best efforts to maintain the same level of
Generation and imports as was scheduled prior to the Load reduction in order to
provide the CAISO with Energy, subject to the provisions of Section 7.1.2.
Vernon's Scheduling Coordinator shall receive compensation for any Energy or
Ancillary Services made available to the CAISO as a result of such Load
Shedding in accordance with the CAISO Tariff and CAISO Operating Procedures
and, in accordance with Section 11.23(a) of the CAISO Tariff, shall not be subject
to any Uninstructed Deviation Penalty for positive Uninstructed Imbalance
Energy for so long as the System Emergency condition exists.
7.5 Electrical Emergency Plan
7.5.1 Vernon shall cooperate with the CAISO's implementation of the Electrical
Emergency Plan ("CAISO EEP") developed by the CAISO in accordance with
Section 7.7.5 of the CAISO Tariff. Vernon shall implement Vernon's EEP
attached to Schedule 11 of this Agreement and filed with FERC for informational
purposes, and the CAISO shall cooperate with Vernon's implementation of
Vernon's EEP.
7.5.2 Vernon shall make an effort to notify its customers of any requests for voluntary
Load curtailments of which the CAISO notifies Vernon pursuant to the CAISO
EEP.
7.5.3 When the CAISO allocates an amount of Load curtailment to Vernon pursuant to
Section 7.4 of this Agreement and to the CAISO EEP to manage a System
Emergency, Vernon shall cause customers to curtail that amount of Load except
to the extent such Load is being served by an emergency generator pursuant to
the provisions of Schedule 11.
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CITY OF VERNON MSS AGREEMENT
ARTICLE VIII
LOCAL AND REGIONAL RELIABILITY
8.1 Reliability Within Vernon's System
8.1.1 Vernon shall be solely responsible for maintaining the reliability of electric service
to customers in Vernon's System in accordance with Applicable Reliability
Criteria, WECC and NERC Reliability Standards, regulatory requirements, and
Good Utility Practice, subject to the responsibilities of the CAISO as the
Balancing Authority for the Balancing Authority Area in which Vernon's System is
located.
8.1.2 Vernon shall be responsible for any reliability Generation, Voltage Support, and
Black Start service requirements within Vernon's System. Except as may be
imposed in section 7.1.5.1 or Vernon voluntarily elects to be subject to must -offer
requirement, Vernon has no must -offer requirements.
8.2 Balancing Authority Area Reliability. For the costs specified in this Article VIII,
Vernon, through its Scheduling Coordinator, shall be responsible for supplying or
bearing its proportionate share of the costs of generating resources required for
the reliability of electric service to Loads in the CAISO Balancing Authority Area,
except for Reliability Must -Run ("RMR") Generation costs on the CAISO
Controlled Grid, where such costs are the responsibility of the Participating TO
where the RMR Unit is interconnected and Vernon is not the applicable
Participating TO. Vernon, through its Scheduling Coordinator, may meet such
obligation from resources it owns or with respect to which it has contractual
entitlements to the Energy and Ancillary Services or it may purchase those
products through the CAISO Markets in accordance with the terms of the CAISO
Tariff.
8.2.1 [INTENTIONALLY LEFT BLANK]
8.3 Voltage Support. Vernon shall maintain stable operating parameters and control
of real and reactive power flows in accordance with the Laguna Bell -Vernon
Interconnection Service Agreement between SCE and Vernon (or a replacement
agreement provided that any replacement agreement preserves Vernon's
obligations to maintain stable operating parameters and control of real and
reactive power flows in coordination with SCE in a manner that meets the
requirements of the CAISO Tariff and the operation standards set forth in
Schedule 2), which is incorporated herein by reference.
8.4 Black Start. Vernon shall either provide its own share of CAISO Balancing
Authority Area Black Start capability or, through its Scheduling Coordinator, shall
bear a portion of the CAISO's Black Start costs in accordance with Section
4.9.4.5 of the CAISO Tariff.
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CITY OF VERNON MSS AGREEMENT
8.5 Ancillary Services. The CAISO is entrusted with the responsibility of procuring
Ancillary Services for the CAISO Balancing Authority Area. Vernon's
responsibility for the CAISO Balancing Authority Area requirements of Ancillary
Services shall be determined in accordance with the CAISO Tariff. If Vernon's
Scheduling Coordinator's Submission to Self Provide an Ancillary Service is
sufficient to meet Vernon's Ancillary Service Obligation, which capacity is
committed to the various required Ancillary Services, and maintains the Ancillary
Service capacity as available to the CAISO for that purpose, Vernon's
Scheduling Coordinator shall not be required to purchase capacity in the
CAISO's Ancillary Service markets. To the extent Vernon's Scheduling
Coordinator does not self -provide sufficient capacity for this purpose, Vernon
may, through its Scheduling Coordinator, purchase the required capacity in the
CAISO's Ancillary Service markets. To the extent Vernon's Scheduling
Coordinator does not maintain the availability of capacity committed to the
CAISO for Ancillary Services for that purpose, the Scheduling Coordinator shall
be responsible for the applicable charges under the CAISO Tariff.
ARTICLE IX
ACCESS TO THE CAISO CONTROLLED GRID AND MARKETS
9.1 Access to the CAISO Controlled Grid
9.1.1 Vernon shall have open and non-discriminatory access to the CAISO Controlled
Grid for the scheduling of transactions that do not utilize Existing Contracts and
Encumbrances in accordance with the CAISO Tariff and for other transmission
services the CAISO may provide in the future under the CAISO Tariff, or under
any other appropriate regulatory avenue.
9.1.2 Vernon may use the CAISO Controlled Grid in accordance with the CAISO Tariff
to buy and sell electric products in the CAISO Markets and in bilateral
transactions with other Market Participants.
9.2 Access to CAISO Markets and CAISO Controlled Grid
9.2.1 Bids to Supply Energy, Ancillary Services and RUC Capacity. Energy,
Ancillary Services and RUC Capacity provided by Vernon's Generating Units and
Loads listed in Schedule 14 may be sold in the CAISO Markets on the terms
applicable under the CAISO Tariff to Participating Generators and Participating
Loads, respectively, and further applicable to MSS Operators and MSS
Aggregators in accordance with the CAISO Tariff.
9.2.2 Self -Provided Ancillary Services and Self -Scheduled Energy. Vernon may
self -provide and self -schedule all or any portion of its obligation for Ancillary
Services and Energy. Whether or not Vernon engages in such self -provision,
Vernon's Scheduling Coordinator shall include the gross output, less auxiliary
load, of each Generating Unit and import from which Vernon meets that
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CITY OF VERNON MSS AGREEMENT
obligation and the gross Load served on Vernon's System and gross exports
from Vernon's System in Bids, including Self -Schedules submitted to the CAISO.
If the CAISO amends the CAISO Tariff to relieve Scheduling Coordinators of the
obligation to submit Bids and Self -Schedules for gross Generation, imports,
Loads, and exports, and the amendment would have applied to Vernon in the
absence of this Agreement, the Parties shall negotiate an amendment to this
Agreement to conform the obligations of this section to the modified procedures.
9.2.3 Scheduling Timelines. Vernon's Scheduling Coordinator shall submit all Bids
- and Self -Schedules, including Self -Schedules for the use of its Existing Contracts
and Encumbrances, Bids and Self -Schedules for the use of the CAISO
Controlled Grid as a new firm use, and Bids, including but not limited to Self -
Schedules, for the delivery of Energy and Ancillary Services, within the timelines
established by the CAISO Tariff.
9.2.4 Black Start and Voltage Support. Vernon or its Scheduling Coordinator shall
be entitled to Bid.its Generating Units and the resources on Vernon's System in
any open solicitation held by the CAISO for Black Start or Voltage Support
services, provided that the supply of any service by Vernon shall not impair its
ability to provide the service it is required by Article VIII of this Agreement to
provide for Vernon's System, and, if the services are sold to the CAISO, Vernon
or its Scheduling Coordinator shall provide such services in accordance with the
CAISO Tariff.
9.3 Congestion Revenue Rights. Vernon as a Load Serving Entity is eligible for
the CRR Allocation in accordance with Section 36 of the CAISO Tariff. Vernon,
in order to participate in the CRR Allocation process, must execute a pro forma
CRR Entity Agreement in accordance with the CAISO Tariff.
ARTICLE X
GENERATING UNITS AND MARKET -PARTICIPATING LOADS
10.1 Identification of Resources. Vernon has identified in Schedule 14 the
individual Generating Units and Loads proposed for participation in the CAISO
Markets that it owns, operates or to which it has a contractual entitlement that are
included in Vernon's System.
10.1.1 Technical Characteristics. Vernon has provided to the CAISO in Schedule 14
the required information regarding the capacity and operating characteristics of
each of the Generating Units and market -participating Loads listed in that
schedule. The CAISO may verify, inspect, and test the capacity and operating
characteristics provided in Schedule 14, and any changes thereto made pursuant
to Section 10.1.2 of this Agreement, in accordance with Section 8.10 of the
CAISO Tariff.
10.1.2 Notification of Changes. Vernon shall notify the CAISO sixty (60) days prior to
any change to the information provided in Schedule 14, provided that such notice
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CITY OF VERNON MSS AGREEMENT
shall not be required for changes to parameters of operating limitations set forth
in Schedule 14, which shall be made in accordance with the CAISO's Operating
Procedures. The Parties shall amend Schedule 14, as applicable, to reflect that
change. Subject to such notification, and verification, inspection, and testing in
accordance with Section 10.1.1, but without waiting for the execution and
effectiveness of an amended Schedule 14, the Parties shall implement any new
information for a Generating Unit or market -participating Load identified in
Schedule 14 upon the effective date for the next scheduled update to the
CAISO's Master File.
10.1.3 Nothing in this section shall preclude Vernon from informing the CAISO of
changes in limitations on the operation of a Generating Unit, as provided in
Section 7.1 of this Agreement, or to comply with environmental laws and
regulations, provided that Vernon provides the CAISO with advance notice of any
changes in such limitations.
10.2 Generating Unit Operation
10.2.1 Vernon shall install and maintain direct telemetry links to the CAISO's EMS
system for each Vernon Generating Unit under Vernon control that enables the
CAISO to view the status, voltage, and output of the Generating Unit and CAISO
certified meters that transmits data automatically to the CAISO's Revenue Meter
Data Acquisition and Processing System. Vernon shall calculate and specify to
the CAISO any distribution loss factor applicable to its Generating Units.
10.2.2 If Vernon, through its Scheduling Coordinator, chooses to submit Bids to supply
Regulation or to make a Submission to Self -Provide an Ancillary Service for
Regulation from a Generating Unit, it must provide the CAISO with control over
the Generating Unit providing Regulation and place the Generating Unit on
Automatic Generation Control ("AGC") responsive to the CAISO's Regulation
signal. Regulation service shall be provided in accordance with the CAISO Tariff.
Vernon or its Scheduling Coordinator may adjust output of Vernon's Generating
Units, in response to Vernon's Load following needs, if elected in accordance
with Section 4.9.13 of the CAISO Tariff, provided that, if Vernon is providing
Regulation to the CAISO from any Generating Unit, it may not adjust the output
of that Generating Unit unless the integrity of the CAISO's Regulation signal, and
the continuous responsiveness of such Generating Unit, via AGC, to the CAISO's
Regulation signal, is not compromised. If the CAISO determines that the integrity
of the CAISO's Regulation signal or the continuous responsiveness to the
CAISO's Regulation signal is compromised, Vernon's Generating Unit shall be
deemed not to have provided the Regulation, and Vernon shall be subject to the
provisions of the CAISO Tariff applicable to failure to provide Regulation. To the
extent that Vernon chooses not to provide Regulation from a Vernon Generating
Unit, the CAISO shall not control the Generating Unit via a direct link between the
CAISO and the Generating Unit without Vernon's consent.
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CITY OF VERNON MSS AGREEMENT
10.3 CAISO Authority to Dispatch Vernon Resources. The CAISO's authority to
issue Dispatch Instructions, including Exceptional Dispatch Instructions, for any
portion of the capacity of any Generating Unit of Vernon, other than in
accordance with a Bid submitted to the CAISO by Vernon's Scheduling
Coordinator, is set forth in and subject to Section 7.1 of this Agreement.
10.4 WECC Requirements Applicable to Participating Generators
10.4.1 Reliability Criteria. Vernon shall comply with the requirements of Section 4.6.5
of the CAISO Tariff applicable to Participating Generators.
10.4.2 Payment of WECC Sanctions. Vernon shall be responsible for payment directly
to the WECC of any monetary sanction assessed against Vernon by the WECC,
as provided in Section 4.6.5.3 of the CAISO Tariff.
10.5 Market -Participating Load Operation
10.5.1 Technical Characteristics. As required by Section 8.4 of the CAISO Tariff,
Vernon shall provide the CAISO with all technical and operational information
requested in Schedule 14 for each Curtailable Demand that it owns, operates, or
has a contractual entitlement to. For those Loads designated by Vernon as
providing Curtailable Demand, Schedule 14 requires Vernon to indicate in
Schedule 14 whether the Load can submit a Bid or self -provide as Non -Spinning
Reserve. Pursuant to Section 8.10 of the CAISO Tariff, the CAISO may verify,
inspect and test the capacity and operating characteristics provided in Schedule
14 for Curtailable Demands.
10.5.2 Metering and Communication. Pursuant to Sections 8.4.5 and 8.4.6 of the
CAISO Tariff, Curtailable Demand that is Bid or self -provided as Non -Spinning
Reserve is required to comply with the CAISO's communication and metering
requirements.
10.5.3 UDC Interruptible Load Programs. Due to the CAISO's reliance on
interruptible Loads to relieve System Emergencies and its contractual
relationship with each UDC, the CAISO will not accept, and Vernon shall not
submit, Energy Bids, Ancillary Service Bids or Submission to Self -Provide an
Ancillary Service from interruptible Loads which are subject to curtailment criteria
established under existing retail tariffs, except under such conditions as may be
specified in the CAISO Tariff.
10.5.4 Incentive Mitigation. For individual Loads or aggregated Loads receiving
incentives for interruption under existing programs approved by a Local
Regulatory Authority as identified in Schedule 14, Section 3, Vernon shall not
receive a capacity payment or credit for Ancillary Service Bids or Submission to
Self -Provide an Ancillary Service and for the time, if any, that there exists an
23
CITY OF VERNON MSS AGREEMENT
overlap between such Ancillary Services Bids or Submissions to Self -Provide an
Ancillary Service and the time during which such individual or aggregated Loads
have been interrupted pursuant to the existing program approved by a Local
Regulatory Authority to which it is subject. This provision shall in no way be
interpreted to limit the authority of the CAISO under the CAISO Tariff in any other
respect.
ARTICLE XI
RESOURCES
11.1 Load Following Resources. Schedule 14A identifies each power resource
authorized for use by Vernon's Scheduling Coordinator in following Vernon's
Load if Vernon elects to Load follow.
11.1.1 The CAISO may file with the FERC to remove a resource from Schedule 14A if
the CAISO determines that a resource identified in Schedule 14A adversely
affects the reliable operation of the CAISO Balancing Authority Area. The CAISO
shall provide notice to Vernon at least 60 days in advance of such a filing. Such
notice to Vernon shall be accompanied by a CAISO explanation of the grounds
on which the CAISO asserts that the resource adversely affects the reliable
operation of the CAISO Balancing Authority Area.
11.1.2 Vernon may add additional resources to Schedule 14A through the following
procedures. Vernon shall provide notice to the CAISO 60 days in advance of the
proposed date of a CAISO filing at FERC to implement the addition of a resource
to Schedule 14A. Within 60 days of such notice, the CAISO must file at the
FERC to add the resource to Schedule 14A unless, within that 60 day period, the
CAISO determines and notifies Vernon that such resource would adversely affect
reliable operation of the CAISO Balancing Authority Area. Notice of such
determination shall be accompanied by a CAISO explanation of the grounds on
which the CAISO asserts that such resource would adversely affect the reliable
operation of the CAISO Balancing Authority Area. If Vernon disagrees with a
CAISO determination that a resource Vernon proposes to add to Schedule 14A,
would adversely affect reliable operation of the CAISO Balancing Authority Area,
Vernon may bring a complaint at the FERC for a FERC determination of whether
the resource would adversely affect reliable operation of the CAISO Balancing
Authority Area, and thus whether the resource is to be added to Schedule 14A.
11.1.3 In no case shall resources located within Vernon's System be removed by the
CAISO from Schedule 14A or be rejected by the CAISO for addition to Schedule
14A.
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CITY OF VERNON MSS AGREEMENT
ARTICLE XII
METERING
12.1 Vernon shall ensure installation of CAISO-certified revenue quality meters and
associated equipment at or near (a) the Points of Delivery, and (b) at each bus to
which one or more Generating Units is connected and the associated Generating
Units auxiliary Load.
12.2 The provisions of the CAISO Tariff applicable to CAISO Metered Entities shall
apply to Vernon, subject to the particular rights and obligations of the Parties with
respect to metering set forth in Schedule 15, including access to and testing of
Vernon's meters.
12.3 The calculation of Vernon's Settlement Quality Meter Data shall be in accordance
with Schedule 15.
ARTICLE XIII
CHARGES
13.1 Charges. Vernon's Scheduling Coordinator shall be responsible for charges
incurred in accordance with Sections 4.9 and 11 of the CAISO Tariff, provided
that nothing in this Agreement shall prohibit Vernon from challenging the
allocation of any new charge under the CAISO Tariff to Vernon on the ground
'that the proposed charge is not appropriately assessed against a MSS Operator,
or on any other ground. CAISO and Vernon recognize that the CAISO Tariff
provisions on which Section 13.7.2 is based are currently before the FERC and
subject to modification based on a prospective FERC order. The Parties
recognize that the FERC is expected to rule on the CAISO's Request for
Clarification or Rehearing filed on July 21, 2008 and that such ruling could impact
Section 13.7.2. To the extent that the anticipated FERC order requires a change
to the existing language of Section 13.7.2, the Parties will promptly meet to
amend this Agreement consistent with the FERC order.
13.2 Congestion Management. Vernon shall be responsible for the cost of
managing and relieving Congestion within Vernon's System, as specified in
Section 5.5, only to the extent that the cause of Congestion is attributed to
Vernon's System operations. If the cause of Congestion is not directly attributed
to Vernon's System operations, and the CAISO utilizes Exceptional Dispatch
Instructions to resolve the identified Congestion, the resulting costs shall be
allocated pursuant to the provisions specified in Section 11.5.6.2.5.2 of the
CAISO Tariff, and will not be solely allocated to Vernon.
13.3 Unaccounted for Energy Costs. Vernon's System shall be treated as a Utility
Distribution Company Service Area for purposes of allocating responsibility for
Unaccounted for Energy costs in accordance with the CAISO Tariff.
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CITY OF VERNON MSS AGREEMENT
13.4 Reliability Generation. Vernon shall be responsible for the costs of maintaining
the reliability of facilities in Vernon's System, including costs of Generating Units
operated by or on behalf of Vernon for that purpose. If and to the extent Vernon
does not maintain sufficient Generation, then Vernon may be assessed costs
incurred by the CAISO to support the reliability of Vernon's System.
13.5 Neutrality Costs. Vernon's Scheduling Coordinator's obligation to pay neutrality
adjustments and Existing Contracts cash neutrality charges (or collect refunds)
shall be based on Vernon's net metered MSS Demand and exports from the
CAISO Balancing Authority Area irrespective of Vernon's MSS Settlement
election as specified in Section 4.9.13 of the CAISO Tariff.
13.6 CAISO Balancing Authority Area Summer Reliability Costs. Vernon, through
its Scheduling Coordinator, shall have the option to avoid any share of the
CAISO's costs for any summer Demand reduction program or for any summer
reliability Generation procurement program pursuant to CAISO Tariff Section
42.1.8. In order to avoid such costs, Vernon shall secure capacity reserves on
an annual basis at least equal to one hundred fifteen percent (115%) of the peak
MSS Demand responsibility and provide documentation to the CAISO of the
resources proposed to meet that MSS peak Demand. Such capacity reserves
may include on -demand rights to Energy, peaking resources, and MSS Demand
reduction programs. For the purposes of this Section 13.6, the MSS peak
Demand responsibility shall be equal to the forecasted annual coincident MSS
peak Demand Forecast plus any firm power sales by the MSS plus any MSS on -
demand obligations to third parties, less interruptible Loads, and less any firm
power purchases. Firm power for the purposes of this Section 13.6 shall be
Energy that is intended to be available to the purchaser without being subject to
interruption or curtailment by the supplier except for Uncontrollable Forces or
emergency, and for which the supplier carries WECC-required operating
reserves. To the extent that Vernon demonstrates its provision of capacity
reserves in accordance with this Section 13.6, Vernon's Scheduling Coordinator
shall not be obligated to bear any share of the CAISO's costs for any summer
Demand reduction program or for any summer reliability Generation procurement
program pursuant to CAISO Tariff Section 42.1.8.
13.7 Allocation of Net IFM Bid Cost Uplift. Vernon's Scheduling Coordinator's
obligation to pay Net IFM Bid Cost Uplift charges shall be based on the following
two tier structure:
13.7.1 Tier 1 IFM Bid Cost Uplift. The hourly Net IFM Bid Cost Uplift is allocated to
Vernon's Scheduling Coordinator in proportion to Vernon's non -negative IFM
Load Uplift Obligation, but with an IFM Bid Cost Uplift rate not exceeding the ratio
of the hourly Net IFM Bid Cost Uplift for the Trading Hour divided by the sum of
all hourly Generation scheduled in the Day -Ahead Schedule and IFM upward AS
Awards for all Scheduling Coordinators from CAISO-committed Bid Cost
Recovery Eligible Resources in that Trading Hour. The IFM Load Uplift
Obligation for Vernon's Scheduling Coordinator is the difference between the
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CITY OF VERNON MSS AGREEMENT
total Demand scheduled in the Day -Ahead Schedule of that Scheduling
Coordinator and the sum of the scheduled Generation and scheduled imports
from Self -Schedules in the Day -Ahead Schedule of that Scheduling Coordinator,
adjusted by any applicable Inter -SC Trades of IFM Load Uplift Obligations.
13.7.2 Tier 2 IFM Bid Cost Uplift. The Scheduling Coordinator for Vernon as an MSS
Operator that has elected both to not follow its Load and gross Settlement will be
charged for an amount equal to any remaining hourly Net IFM Bid Cost Uplift for
the Trading Hour in proportion to Vernon's Measured Demand. The Scheduling
Coordinator for Vernon as an MSS Operator that has elected to follow its Load or
net Settlement, or both, will be charged for an amount equal to any remaining
hourly Net IFM Bid Cost Uplift for the Trading Hour in proportion to Vernon's
MSS Aggregation Net Measured Demand.
13.8 Allocation of Net RTM Bid Cost Uplift.The allocation of Net RTM Bid Cost
Uplift is based on the MSS elections as specified in Section 4.9.13 of the CAISO
Tariff. The hourly RTM Bid Cost Uplift is allocated to the Scheduling Coordinator
for Vernon as an MSS Operator that has elected to not follow its Load and gross
Settlement, in proportion to Vernon's Measured Demand for the Trading Hour.
For the Scheduling Coordinator for Vernon as an MSS Operator that has elected
to not follow its Load and net Settlement, the hourly RTM Bid Cost Uplift is
allocated in proportion to Vernon's MSS Aggregation Net Measured Demand.
For the Scheduling Coordinator for Vernon as an MSS Operator that elected to
Load follow, the hourly RTM Bid Cost Uplift is allocated in proportion to Vernon's
MSS Net Negative Uninstructed Deviation with MSS Load Following Energy
included in the netting.
13.9 Grid Management Charges Based on Uninstructed Imbalance Energy. If the
CAISO is charging Grid Management Charges for Uninstructed Imbalance
Energy, and should Vernon elect, in accordance with Section 4.9.13 of the
CAISO Tariff to perform Load -following, Vernon's Scheduling Coordinator should
only be assessed Grid Management Charges for Uninstructed Imbalance Energy
based on the net quantity of Energy either delivered to or received from the
CAISO Real -Time Market, excluding the quantity of Energy provided as
Instructed Imbalance Energy, other than MSS Load Following Energy, and the
quantity of Energy used to perform Load -following. If the amount of Energy
provided from Generation resources listed in Schedule 14, imports and trades in
to the MSS netted against MSS Demand, exports, and trades out of the MSS is
positive, excluding Instructed Imbalance Energy other than MSS Load Following
Energy, then such portion of Energy was provided in excess of Vernon's Load -
following needs and was sold into the CAISO Real -Time Market, in which case
Vernon's Scheduling Coordinator will only be charged Grid Management
Charges associated with Uninstructed Imbalance Energy for this net excess
quantity. If the amount of Energy provided from Generation resources listed in
Schedule 14, imports and trades into the MSS netted 'against MSS Demand,
exports, and trades out of the MSS is negative, excluding Instructed Imbalance
27
CITY OF VERNON MSS AGREEMENT
Energy other than MSS Load Following Energy, then such portion of Energy was
not sufficient to fully cover Vernon's Load -following needs and was purchased
from the CAISO Real -Time Market, in which case Vernon's Scheduling
Coordinator will only be charged Grid Management Charges associated with
Uninstructed Imbalance Energy for this net purchased quantity. For the
purposes of calculating the quantity of Uninstructed Imbalance Energy not used
to perform Load following, MSS Load Following Energy, which is classified as
Instructed Imbalance Energy, will be included in the calculation of Uninstructed
Imbalance Energy by netting MSS Load Following Energy against Uninstructed
Imbalance Energy.
13.10 Grid Management Charges Based on Instructed Imbalance Energy. If the
CAISO is charging Grid Management Charges for Instructed Imbalance Energy,
Vernon's Scheduling Coordinator will not be assessed Grid Management
Charges for Instructed Imbalance Energy associated with MSS Load Following
Energy.
13.11 MSS Deviation Band. The amount by which a Load following MSS Operator
can deviate from Expected Energy without incurring a Load Following Deviation
Penalty, as defined in Section 13.13 and Schedule 19, is equal to three percent
(3%) of an MSS Operator's gross metered MSS Demand in the MSS and exports
from the MSS, adjusted for Forced Outages and any CAISO directed firm Load
Shedding from the MSS's portfolio as a whole.
13.12 Load Following Deviation Band Compliance. To the extent that sufficient
Energy for the purposes of serving Vernon's MSS Demand and exports from the
MSS, including losses, is not reflected in Bids, including Self -Schedules,
submitted by Vernon's Scheduling Coordinator and delivered in real time, Vernon
shall be deemed (through its Scheduling Coordinator) to have purchased or sold
Imbalance Energy in the CAISO's Real -Time Market. The CAISO will settle with
Vernon's Scheduling Coordinator with regard to Imbalance Energy in accordance
with the CAISO Tariff. However, should Vernon elect, in accordance with
Section 4.9.13 of the CAISO Tariff, to follow Vernon MSS Demand and exports
from the MSS with Vernon's System resources and imports into the MSS, to the
extent that the net Imbalance Energy for all of Vernon's MSS Demand and
exports from the MSS, and resources and imports into the MSS, is within
Vernon's portfolio MSS Deviation Band, as specified in Section 13.11 and
Schedule 19, Vernon's Scheduling Coordinator will not be subject to the Load
Following Deviation Penalty, as specified in Section 13.13, or costs other than
the cost of the Imbalance Energy itself. Schedule 19 of this Agreement
describes the process for the calculating the applicable amount of net Imbalance
Energy, which is referred to as deviation energy within Schedule 19. To the
extent that Vernon's Scheduling Coordinator is operating outside of its portfolio
MSS Deviation Band, Vernon's Scheduling Coordinator shall be subject to the
Load Following Deviation Penalty. In following Load, Vernon's Scheduling
Coordinator may utilize any resource available to it regardless of whether, or at
what level, the resource is reflected in Schedules submitted by Vernon's
28
CITY OF VERNON MSS AGREEMENT
Scheduling Coordinator, submitted in the form of a Bid or Self -Schedule, except
with respect to any portion of the capacity of a resource for which Vernon's
Scheduling Coordinator has scheduled to provide an Ancillary Service and or
RUC Capacity to the CAISO for that resource or to the extent the CAISO has
issued a System Emergency operating order consistent with Section 7.1.1.
13.13 Deviation Band Penalties Calculation. Vernon's Scheduling Coordinator will
pay the Load Following Deviation Penalties for (i) excess MSS Generation
supplied to the CAISO Markets and (ii) excess MSS Demand relying on CAISO
Markets and not served by Vernon resources. To the extent that Vernon's
Scheduling Coordinator has provided excess MSS Generation outside of the
MSS Deviation Band to the CAISO Markets, measured as defined in Section
11.7.1.1 of the CAISO Tariff, then the payment for excess Energy outside of the
MSS Deviation Band shall be rescinded and thus Vernon's Scheduling
Coordinator will pay the CAISO an amount equal to one hundred percent (100%)
of the product of the highest LMP paid to the MSS Operator for its Generation in
the Settlement Interval for the amount of the Imbalance Energy that is supplied in
excess of the MSS Deviation Band. To the extent that Vernon's Scheduling
Coordinator has excess MSS Demand outside of the MSS Deviation Band that is
relying on CAISO Markets that is not served by Vernon resources, measured as
provided in Section 11.7.1.2 of the CAISO Tariff, then Vernon's Scheduling
Coordinator shall pay the CAISO an amount equal to the product of the Default
LAP price for the Settlement Interval and two hundred percent (200%) of the
shortfall that is outside of the MSS Deviation Band. The two hundred percent
(200%) penalty is in addition to the charges for the Imbalance Energy that serves
the excess MSS Demand relying on CAISO Markets.
13.14 Operating and Maintenance Costs. Vernon shall be responsible for all its costs
incurred in connection with procuring, installing, operating, and maintaining
Vernon's facilities, including the Generating Units and Loads listed in Schedule
14, for the purpose of maintaining Vernon's System.
13.15 Billing and Payment. Billing and payment will be in accordance with the CAISO
Tariff.
13.16 MSS Net Negative Uninstructed Deviation. The calculation of MSS Net
Negative Uninstructed Deviation must include MSS Load Following Energy as
part of the calculation of Net Negative Uninstructed Deviation quantities when
used for purposes of applicable CAISO Settlement allocation. MSS Load
Following Energy shall be netted against Uninstructed Imbalance Energy to
properly account for the actual quantity of Net Negative Uninstructed Deviation.
13.17 Residual Unit Commitment. Should Vernon elect, in accordance with Section
4.9.13 of the CAISO Tariff, to perform Load -following, Vernon will be considered
to have automatically opted -out of RUC participation, and Vernon's Scheduling
29
CITY OF VERNON MSS AGREEMENT
Coordinator will be exempt from'costs associated with RUC and Bid Cost
Recovery for RUC.
13.18 Emissions Costs. Unless specified otherwise in this Agreement, if the CAISO
compensates Generating Units for Emissions Costs, such costs shall be
allocated as set forth in this section. No later than November 1 of each year,
Vernon shall report to the CAISO its election of whether or not to charge the
CAISO for Emissions Costs. This annual election shall apply for the following
calendar year.
(a) If Vernon elects to charge the CAISO for the Emissions Costs of the
Generating Units serving Load of Vernon's System, then Vernon's
Scheduling Coordinator shall bear its proportionate share of the total
amount of those costs incurred by the CAISO based on Vernon's gross
Measured Demand excluding out-of-state exports and the Generating
Units shall be made available to the CAISO through the submittal of
Energy Bids.
(b) If Vernon elects not to charge the CAISO for the Emissions Costs of the
Generating Units serving Load of Vernon's System, then'Vernon's
Scheduling Coordinator shall bear its proportionate share of the total
amount of those costs incurred by the CAISO based on Vernon's net
Measured Demand excluding out-of-state exports.
(c) If Vernon elects to follow its load in accordance with Section 4.9.13 of the
CAISO Tariff and if Vernon elects not to charge the CAISO for Emissions
Costs of the Generating Units serving the Load of Vernon's System, then
Vernon's Scheduling Coordinator shall bear its proportionate share of the
total amount of those costs incurred by the CAISO based on Vernon's Net
Negative Uninstructed Deviations with MSS Load Following Energy
included in the netting.
ARTICLE XIV
PENALTIES AND SANCTIONS
14.1 Penalties. Vernon or its Scheduling Coordinator shall be subject to penalties
and/or sanctions for failure to comply with any provisions of this Agreement only
to the extent that (a) the penalty or sanction is set forth in the CAISO Tariff and
has been approved by FERC; and (b) the CAISO Tariff provides for the
imposition of the same penalty or sanction on a UDC, MSS Operator, or
Participating Generator, or Participating Load in the same circumstances.
Nothing in this Agreement, with the exception of the provisions of Article XV,
shall be construed as waiving the rights of Vernon to oppose or protest any
30
CITY OF VERNON MSS AGREEMENT
penalty or sanction proposed by the CAISO to the FERC or the specific
imposition by the CAISO of any FERC-approved penalty or sanction on Vernon.
14.2 Corrective Measures. If Vernon fails to meet or maintain the requirements set
forth in this Agreement or in the applicable provisions of the CAISO Tariff, the
CAISO shall be permitted to take any of the measures, contained or referenced
herein or in the applicable provisions of the CAISO Tariff, that the CAISO deems
to be necessary to correct the situation.
ARTICLE XV
DISPUTE RESOLUTION
15.1 Dispute Resolution. The Parties shall make reasonable efforts to settle all
disputes arising out of or in connection with this Agreement. In the event any
dispute is not settled, the Parties shall adhere to the CAISO ADR Procedures set
forth in Section 13 of the CAISO Tariff, which is incorporated by reference,
except that any reference in Section 13 of the CAISO Tariff to Market
Participants shall be read as a reference to Vernon and references to the CAISO
Tariff shall be read as references to this Agreement._
ARTICLE XVI
REPRESENTATIONS AND WARRANTIES
16.1 Representations and Warranties. Each Party represents and warrants that the
execution, delivery and performance of this Agreement by it has been duly
authorized by all necessary corporate and/or governmental actions, to the extent
authorized by law.
16.2 Necessary Approvals. Each Party represents that all necessary leases,
approvals, licenses, permits, easements, rights of way or access to install, own
and/or operate its facilities subject to this Agreement have been or will be
obtained prior to the effective date of this Agreement.
ARTICLE XVII
LIABILITY AND INDEMNIFICATION
17.1 Liability and Indemnification. The provisions of Section 14 of the CAISO Tariff
will apply to liability and indemnification arising under this Agreement, except that
all references in Section 14 of the CAISO Tariff to Market Participants shall be
read as references to Vernon and references to the CAISO Tariff shall be read as
references to this Agreement.
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CITY OF VERNON MSS AGREEMENT
ARTICLE XVIII
UNCONTROLLABLE FORCES
18.1 Section 14.1 of the CAISO Tariff shall be incorporated by reference into this
Agreement, except that all references in Section 14.1 of the CAISO Tariff to
Market Participants shall be read as a reference to Vernon and references to the
CAISO Tariff shall be read as references to this Agreement.
ARTICLE XIX
MISCELLANEOUS
19.1 Notices. Any notice, demand or request which may be given to or made upon
either Party regarding this Agreement shall be made in writing to the employee or
official identified in Schedule 17 of this Agreement, and shall be deemed properly
given: (a) upon delivery, if delivered in person, (b) five (5) days after deposit in
the mail if sent by first class United States mail, postage prepaid, (c) upon receipt
of confirmation by return facsimile if sent by facsimile, or (d) upon delivery if
delivered by prepaid commercial courier service. A Party must update the
information in Schedule 17 as the information changes. Such changes shall not
constitute an amendment to this Agreement.
19.2 Waivers. Any waiver at any time by either Party of its rights with respect to any
default under this Agreement, or with respect to any other matter arising in
connection with this Agreement, shall not constitute or be deemed a waiver with
respect to any subsequent default or other matter arising in connection with this
Agreement. Any delay, short of the statutory period of limitations, in asserting or
enforcing any right under this Agreement shall not constitute or be deemed a
waiver of such right.
19.3 Governing Law and Forum. This Agreement shall be deemed to be a contract
made under, and for all purposes shall be governed by and construed in
accordance with, the laws of the State of California, except its conflict of laws
provisions. The Parties agree that any legal action or proceeding arising under
or relating to this Agreement to which the CAISO ADR Procedures do not apply
shall be brought in one of the following forums as appropriate: any court of the
State of California, any federal court of the United States of America located in
the State of California, or, where subject to its jurisdiction, before the Federal
Energy Regulatory Commission.
19.4 Merger. This Agreement constitutes the complete and final agreement of the
Parties with respect to the subject matter hereof and supersedes all prior
agreements, whether written or oral, with respect to the provisions of this
Agreement.
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CITY OF VERNON MSS AGREEMENT
19.5 Counterparts. This Agreement may be executed in one or more counterparts at
different times, each of which shall be regarded as an original and all of which,
taken together, shall constitute one and the same Agreement.
19.6 Consistency with Federal Laws and Regulations. Nothing in this Agreement
shall compel either Party to violate federal statutes or regulations, or orders
lawfully promulgated thereunder. If any provision of this Agreement is
inconsistent with any obligation imposed on a Party by such federal statute,
regulation or order, to that extent, it shall be inapplicable to that Party. No Party
shall incur any liability by failing to comply with a provision of this Agreement that
is inapplicable to it by reason of being inconsistent with any such federal statutes,
regulations, or orders lawfully promulgated thereunder; provided, however, that
such Party shall use its best efforts to comply with this Agreement, to the extent
that applicable federal laws, regulations, and orders lawfully promulgated
thereunder permit it to do so.
19.7 Severability. If any term, covenant, or condition of this Agreement or the
application or effect of any such term, covenant, or condition is held invalid as to
any person, entity, or circumstance, or is determined to be unjust, unreasonable,
unlawful, imprudent, or otherwise not in the public interest by any court or
government agency of competent jurisdiction, then such term, covenant, or
condition shall remain in force and effect to the maximum extent permitted by
law, and all other terms, covenants, and conditions of this Agreement and their
application shall not be affected thereby, but shall remain in force and effect and
the Parties shall be relieved of their obligations only to the extent necessary to
eliminate such regulatory or other determination unless a court or governmental
agency of competent jurisdiction holds that such provisions are not separable
from all other provisions of this Agreement.
19.8 Assignments. Either Party may assign its rights and obligations under this
Agreement, with the other Party's prior written consent, in accordance with
Section 22.2 of the CAISO Tariff, which is incorporated by reference into this
Agreement. Such consent shall not be unreasonably withheld.
19.9 No Regional Transmission Organization or Participating TO Obligation:
Nothing in this Agreement shall obligate or commit Vernon to become a member
of any regional transmission organization (RTO) or to remain a Participating TO.
19.10 FERC Jurisdiction over Vernon. Vernon is not a "public utility" as currently
defined in the Federal Power Act and by entering into this Agreement does not
consent to FERC jurisdiction or waive its rights to object to FERC asserting
jurisdiction over Vernon.
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CITY OF VERNON MSS AGREEMENT
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed on behalf of each by and through their authorized representatives as of the
date hereinabove written.
California Independent System Operator Corporation
By:
Name:
Title:
Date:
City Of Vernon
`w�zskal�
Name: Donal O'Callaghan
Title: Director, Light & Power Department
Date: November 17, 2008
APPROVED AS TO FORM: ATTEST:
CAI
Jeff Ha 'son, City Attorney Manuela Giron, C+ y Clerk
34
CITY OF VERNON MSS AGREEMENT
SCHEDULE1
VERNON'S SYSTEM FACILITIES
[Section 1.2)
The following facilities form Vernon's System, including the Points of MSS
Interconnection and Points of Delivery.
For Vernon:
A) Point of MSS Interconnection: Laguna Bell kV bus
The Point of MSS Interconnection of the City of Vernon to the CAISO
Balancing Authority Area grid is at Line Disconnect Switches 45, 46, 47,
48, and 49 which are in the 66 kV lines emanating from the Laguna Bell
66 kV bus that go to the City of Vernon's system.
B) Point of Delivery: Laguna Bell 230 kV bus
The interface between the City of Vernon and the CAISO Controlled Grid
is at the Laguna Bell 230 kV bus, which is the Point of Delivery for
transactions in the CAISO wholesale market.
C) Vernon Load
At Laguna Bell 230 kV bus interconnections (SP15 Demand, Zone)
D) Generation Facilities: H. Gonzales Units #1 and #2
Malburg Generation Station
35
CITY OF VERNON MSS AGREEMENT
SCHEDULE 2
OPERATION STANDARDS
[Section 4.2]
The CAISO shall maintain stable operating parameters and control of real and reactive
power flows in accordance with the following Operation Standards. Vernon shall
maintain stable operating parameters and control of real and reactive power flows in
accordance with the Laguna Bell -Vernon Interconnection Service Agreement between
SCE and Vernon (or a replacement agreement provided that any replacement
agreement preserves Vernon's obligations to maintain stable operating parameters and
control of real and reactive power flows in coordination with SCE in a manner that
meets the requirements of the CAISO Tariff and in accordance with Section 8.3 of this
Agreement and this Schedule 2), which is incorporated herein by reference.
Vernon Responsibilities
1.0 Vernon shall operate the facilities of Vernon's System in such manner as to avoid
any material or adverse impact on the CAISO Balancing Authority Area. In
accordance with this performance goal, Vernon shall:
1.1 Operate the facilities of Vernon's System and maintain protective systems and
reactive power flows at each Point of MSS Interconnection within established
operating parameters including normal ratings, emergency ratings, voltage limits,
and balance of Load between electrical phases in accordance with the Laguna
Bell -Vernon Interconnection Service Agreement between SCE and Vernon (or a
replacement agreement that meets the requirements described above).
CAISO Responsibilities
2.0 The CAISO shall operate the CAISO Controlled Grid in such manner as to avoid
any material or adverse impact on Vernon facilities. In accordance with this
performance goal, the CAISO shall:
2.1 Participate with Vernon and SCE in the development of joint power quality
performance standards and jointly maintain compliance with such standards.
2.2 Observe Vernon grid voltage limits specified in Attachment 1 including
requirements for reduced voltage on CAISO Controlled Grid facilities which apply
during heavy fog (or other unusual operating conditions) as needed to minimize
the risk of insulator flashover. Any anticipated reduction in operating voltages on
CAISO Controlled Grid facilities shall be studied and established by Vernon and
the CAISO.
36
CITY OF VERNON MSS AGREEMENT
2.3 Approve Vernon's maintenance requests in a timely manner for transmission
facilities that impact the CAISO Controlled Grid, and shall not unreasonably
withhold approval of such requests for authorization to perform energized
insulator washing work or to take planned Outages needed to replace or insul-
grease insulators.
2.4 Support Vernon investigation of power quality incidents, and provide related data
to Vernon in a timely manner.
2.5 Support installation of apparatus on the CAISO Controlled Grid to improve power
quality, and take all reasonable measures to investigate and mitigate power
quality concerns caused by actions or events in neighboring systems or
Balancing Authority Areas.
37
CITY OF VERNON MSS AGREEMENT
SCHEDULE2
ATTACHMENT 1
VERNON GRID VOLTAGE LIMITS
There are no Vernon grid voltage limitations at the present time.
38
CITY OF VERNON MSS AGREEMENT
SCHEDULE 3
RIGHTS OF ACCESS TO FACILITIES
[Section 4.5.1]
1.0 Equipment Installation. In order to give effect to this Agreement, a Party
that requires use of particular equipment (the equipment owner) may require
installation of such equipment on property owned by the other Party (the
property owner), provided that the equipment is necessary to meet the
equipment owner's service obligations and that the equipment shall not have
a negative impact on the reliability of the service provided, nor prevent the
property owner from performing its own obligations or exercising its rights
under this Agreement.
1.1 Free Access. The property owner shall grant to the equipment owner free of
charge reasonable installation rights and rights of access to accommodate
equipment inspection, maintenance, repair, upgrading, or removal for the
purposes of this Agreement, subject to the property owner's reasonable
safety, operational, and future expansion needs.
1.2 Notice. The equipment owner shall provide reasonable notice to the property
owner when requesting access for site assessment, equipment installation, or
other relevant purposes. Such access shall not be provided unless the
parties mutually agree to the date, time, ,and purpose of each access.
Agreement on the terms of the access shall not be unreasonably withheld or
delayed.
1.3 Removal of Installed Equipment. Following reasonable notice, the
equipment owner shall be required, at its own expense, to remove or relocate
equipment, at the request of the property owner, provided that the equipment
owner shall not be required to do so if it would have a negative impact on the
reliability of the service provided, or would prevent the equipment owner from
performing its own obligations or exercising its rights under this Agreement.
1.4 Costs. The equipment owner shall repair at its own expense any property
damage it causes in exercising its rights and shall reimburse the property
owner for any other reasonable costs that it may be required to incur to
accommodate the equipment owner's exercise of its rights under Section 4.5
of this Agreement.
2.0 Rights to Assets. The Parties shall not interfere with each other's assets,
without prior written agreement.
3.0 Inspection of Facilities. In order to meet their respective obligations under
this Agreement, each Party may view or inspect facilities owned by the other
39
CITY OF VERNON MSS AGREEMENT
Party. Provided that reasonable notice is given, a Party shall not
unreasonably deny access to relevant facilities for viewing or inspection by
the requesting Party.
40
CITY OF VERNON MSS AGREEMENT
SCHEDULE 4
MAINTENANCE COORDINATION
[Section 5.1.2]
Vernon shall exchange with the CAISO a provisional planned Outage program for all
lines and equipment in Schedule 1 in accordance with the CAISO Tariff. That document
will be updated quarterly and as changes occur to the proposed schedule.
The CAISO shall approve all proposed Outages on the generating facilities listed on
Schedule 1 unless a proposed Outage would cause the CAISO to violate Applicable
Reliability Criteria. Approval of Outages shall ,not be unreasonably withheld.
Applications for scheduled work shall be submitted to the CAISO by Vernon via means
to be agreed to by both Parties. The documents submitted by Vernon shall record the
details for all work and become the database for reporting and recording Outage
information.
41
CITY OF VERNON MSS AGREEMENT
SCHEDULE 5
CRITICAL PROTECTIVE SYSTEMS
[Section 5.3]
Distribution protective relay schemes affecting the CAISO Controlled Grid are those
associated with transformers that would trip transmission breakers and/or busses when
activated. These would include any of the following:
1. High Side Overcurrent Relays
2. Differential Overcurrent Relays
3. Sudden Pressure Relays
4. Low Oil Relays
5. Neutral Ground Overcurrent Relays
6. On fuse protected transformers, it would be the high -side fuses.
With respect to Vernon, operational control and maintenance responsibilities related to
the facilities described above reside with SCE.
42
CITY OF VERNON MSS AGREEMENT
CAISO:
Transmission Dispatcher
(Folsom):
Transmission Dispatcher
(Alhambra):
Shift Supervisor:
Director of Grid Operations:
City/State/Zip Code:
SCHEDULE 6
OPERATIONAL CONTACTS
[Section 5.4]
(916) 351-2492 or 2497
(626) 537-2831 or 2832
(916) 351-2490
(916) 351-2101
California Independent System Operator Corporation
151 Blue Ravine Road
Folsom, CA 95630
Other CAISO Operations Phones:
Generation Dispatcher
(Folsom): (916) 351-2489 or 2488
Generation Dispatcher
(Alhambra): (626) 537-2830
Real Time Scheduler:
(Folsom)
Real Time Scheduler
(Alhambra)
Pre Scheduler:
Control Room fax:
Outage Coordination
Fax:
(916) 351-2495 or 2493
(626) 537-2836 or 2837
(916) 351-2484
(916) 351-2268
(626) 537-2766
(626) 537-2919
43
CITY OF VERNON MSS AGREEMENT
Vernon:
Name of Electric System Dispatcher:
Address:
City/State/Zip Code:
Email address:
Phone:
Fax:
Prescheduler:
Real -Time:
Operations Shift Manager
4305 Santa Fe Avenue
Vernon, CA 90058
CONTROLCENTER(a-)-CI.VERNON.CA.US
(323) 585-6069
(323) 585-3119
(323) 826-1424
(323) 826-1461
44
CITY OF VERNON MSS AGREEMENT
SCHEDULE 7
EMERGENCIES
[Section 7.2]
The CAISO shall notify Vernon's Electric System Dispatcher, as identified in Schedule
6, of the emergency, including information regarding the cause, nature, extent, and
potential duration of the emergency. Depending on the nature of the emergency and
the particular response required, such notification shall be made to Vernon either
directly by the CAISO or through the Area Control Center (ACC) specified by the
CAISO, currently the SCE ACC. The Vernon Electric System Dispatcher shall make the
appropriate notifications within the Vernon organization. The Vernon Electric System
Dispatcher shall then take such actions as are appropriate for the emergency in
accordance with Section 7 of this Agreement.
Vernon shall make requests for real-time information from the CAISO regarding
emergencies through contacts to the CAISO's Operations Shift Supervisor, by Vernon's
Electric System Dispatcher, or Vernon's Communication Coordinator may coordinate
public information with the CAISO Communication Coordinator.
Vernon is required" to estimate service restoration by geographic areas, and shall use its
call center and the media to communicate with customers during service interruptions.
Vernon will communicate necessary information to appropriate state, local
governmental entities, and its customers as needed. For Vernon Outages that may be
caused by events affecting the transmission system, the Vernon Electric System
Dispatcher will make appropriate notifications to the CAISO of any information related to
the Outage such as cause, nature, extent, potential duration and customers affected.
Non -confidential Vernon and non -confidential CAISO data recorded in CAISO Grid
Control Center logs, Electric Switching Orders and Energy Management System
temporal database will be used in preparation of Outage reviews. These documents
are defined as the chronological record of the operation of the activities which occur
with the portion of the electrical system assigned to that control center. The log shall
contain all pertinent information, including orders received and transmitted, relay
operations, messages, clearances, accidents, trouble reports, daily switching program,
etc.
Vernon shall retain records in accordance with its standard practices for record retention
for not less than six years.
45
CITY OF VERNON MSS AGREEMENT
SCHEDULE8
UNDERFREQUENCY LOAD SHEDDING
[Section 7.4.1]
The objective of the Underfrequency Load Shedding ("UFLS") program is to provide
security and protection to the interconnected bulk power network by arresting frequency
decay during periods of insufficient resources.
This plan establishes Underfrequency Load Shedding objectives consistent with
the Load Shedding policies of the Western Electricity Coordinating Council, the North
American Electric Reliability Corporation and Vernon. Vernon's UFLS program is set
forth in its UFLS Procedures and pursuant to the Laguna Bell -Vernon Interconnection
Service Agreement with SCE. Such agreement provides that Vernon's Load Shedding
equipment will be compatible and coordinated with Edison's Load Shedding equipment
and that Edison will set the amount to be shed.
Vernon currently maintains an Underfrequency Load Shedding Procedure under
Electrical Operating Procedure (EOP) No. 7, as revised October 8, 2008, which is
attached hereto and incorporated herein by reference. This procedure is in support of
SCE's System Operating Bulletin (SOB) No. 115.
Vernon shall develop a separate UFLS program prior to such time as the SCE
plans described above may cease to apply to Vernon. Upon such replacement program
Vernon shall comply with directions from the CAISO to implement Vernon's Load
Shedding program in accordance with the WECC Off -Nominal Frequency Load
Shedding and Restoration Plan (Final Report November 25, 1997, as revised December
5, 2003 or as it may be amended by the WECC from time to time). Vernon's UFLS
program shall utilize WECC planning criteria in this area. Per WECC requirements,
UFLS shall be on the feeder side of the transformer.
This Schedule will be revised to incorporate that separate UFLS program by
reference upon its implementation by Vernon. Vernon shall notify the CAISO of any
changes to its existing UFLS program prior to implementation of such changes. At no
time shall Vernon be exempt from either participating in a CAISO-sanctioned third party
UFLS program (currently with SCE) or implementing such program independently in full
compliance with WECC requirements.
Vernon shall also comply with directions from the CAISO to implement the
requirements of the WECC Southern Island Load Tripping Plan (July 22, 1997, or as it
may be amended by the WECC from time to time) ("SILT"), to the extent Vernon's
compliance with SILT requirements is not satisfied through Vernon's UFLS program.
46
CITY OF VERNON
UTILITIES DEPARTMENT
EFFECTIVE DATE: AUGUST 2, 2005
REVISION DATE: OCTOBER„8, 2008
ELECTRICAL OPERATING PROCEDURE NO.7
TITLE: UNDERFREQUENCY.PROCEDURE
Contents. -
I . Preface
II. Responsibilities
III. Procedure
I V . Table 1 — Underfrequency Load drop Schedule
I. Preface
This operating procedure is in support of Southern
California Edison (SCE) System Operating Bulletin (SOB) No.
125 entitled "Procedure for Shedding Load and Separating
Interconnections in the Event of Excessive Low Frequency".
Automatic load shedding is initiated to match the load
demand with the available generation resources thus allowing
the frequency to recover. Manual load shedding may also be
required to expedite frequency recovery.
SCE intends to implement other less severe load curtailment
options where time permits. Refer to SCE SOB 19, 20, 21 and
City of Vernon's (COV) Electrical Operating Procedures (EOP)
19, 20 and 21.
II. Responsibilities
The COV distribution system is equipped with underfrequency
load shedding relays. The setting of these relays supports
the Control Area's (SCE) underfrequency scheme which in turn
supports the Western Systems Coordinating Council (WSCC)
underfrequency relay scheme.
A. Electrical Engineering shall:
1. Determine the designated underfrequency loads
to be committed to the underfrequency load
shedding.
F:\EOP-GOPTlectrical Operating Procedures\EOP7 - Underfrequency Load Shedding.doc
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2. Coordinate the underfrequency relay
protection scheme installed on City
facilities.
3. Coordinate design changes with COV divisions
and SCE.
4. Coordinate the stetting, testing and
maintenance of underfrequency relays.
B. The COV Control Center Systems Coordinator I
shall:
1. Report underfrequency operations to SCE'S
Lighthipe Substation and COV Light and Power
Management.
2. Operate underfrequency relays for routine
switching and during the implementation of
emergency underfrequency procedures.
3. Maintain AC power source to the OF relays at
all times in accordance with station
operating instructions.
4. Utilize local generation to pick up all or
part of City load that has been shed by the
OF relays and that has separated from the SCE
system.
III. Procedures
A. Making OF Relays Solid
Underfrequency relay protection may be made solid,
(non -automatic) for specific switching procedures
when authorized by the Transmission and
Distribution Manager. Underfrequency relays, when
authorized to be solid, shall be held to the
minimum time possible. Notify Lighthipe
Substation when underfrequency relays are made
solid and/or automatic.
B. OF Relay Operation Notifications
When underfrequency relays .have shed City load,
the City Systems Coordinator I shall notify Center
Substation, COV Light and Power Management and COV
Fire/Police Dispatch Center.,
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C. Manual Load Shed Procedures
The Systems Coordinator I shall shed load manually
if the system frequency is at or below the
designated low frequency trip point for a
scheduled bank while the underfrequency relays are
solid or out of service.
D. Generation
Dispatch qualified personnel to bring available
COV generation on-line after a OF operation.
Coordinate activities with SCE. Adhere to Station
Instructions and initiate switching to pickup load
that has been shed by OF relays with "available"
local generation.
E. Restoration Procedures
1. With Communication with SCE Coordinate
restoration with the SCE Operator at Center
Substation or the SCE Grid Control Center
(GCC). Do not engage in unnecessary
conversation.
Note. Adhere to Vernon and Leonis Station
Instructions to recover affected banks.
2. Without Communication with SCE After an
automatic OF load shedding operation, if
unable to communicate with the Grid Control
Center, make one attempt to restore load,
when the frequency is at or above 60.0 Hz.
If the load pickup causes the frequency to
drop below the trip point, the load should be
dropped immediately. No further attempts
shall be made to pick up load without orders
from the SCE GCC.
F. System Failure
Should the automatic and manual load shedding be
insufficient to allow the frequency to effectively
recover, a total system shut down may occur. Refer
to SCE SOB No. 98 for restoration procedures.
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Table 1
City of Vernon
Underifrequeney Load Drop Schedule
Substation
Load Dropped
7equency
59.5
F-
_
59.3
-
59.25
-
59.1
-
58.9
-
58.8
-
58.7
Vernon
#2 Bk 66/7kv
58.5
Leonis
#4 Bk 66/16kv
58.1
Leonis
#S'Bk 66/16kv
58.0
-
57.9
Vernon
#3 Bks 66/7kv
57.7
Leonis
#2 & #3 Bks 66/7kv
57.0
-
55.0
-
Approved:
Carlos Fand' o
Transmission and Distribution Manager
F:1EOP-GOP\Electrical Operating ProceduresNEOP7 - Underfrequency Load Shedding.doc
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Page 4 of 4
CITY OF V'ERNON MSS AGREEMENT
SCHEDULE 9
OTHER AUTOMATIC LOAD SHEDDING
[Section 7.4.1]
Vernon currently employs an automatic Underfrequency Load Shedding program only,
as described in Schedule 8. At present Vernon does not utilize an under -voltage Load
Shedding program.
47
CITY OF VERNON MSS AGREEMENT
SCHEDULE10
MANUAL LOAD SHEDDING
[Section 7.4.3]
Vernon currently maintains a plan, under Electric Operating Procedure No. 20 as
revised October 16, 2008 which is attached hereto, whereby nonessential distribution
circuits are subjected to manual Load Shedding and rotating service interruptions when
required by Southern California Edison Company (SCE) in accordance with SCE
System Operating Bulletin No. 21 and its applicable Attachments and the Laguna Bell -
Vernon Interconnection Service Agreement between SCE and Vernon (or a
replacement agreement provided that any replacement agreement preserves Vernon's
obligations in accordance with this Schedule 10), both of which are incorporated herein
by reference. Until such time as Vernon implements a plan for manual Load Shedding
and rotating service interruptions independent of SCE, Vernon shall continue to operate
in accordance with the existing plan.
Vernon shall develop a separate manual Load Shedding program prior to such time as
the SCE plans described above may cease to apply to Vernon. This Schedule will be
revised to incorporate that separate manual Load Shedding program by reference upon
its implementation by Vernon.
48
CITY OF VERNON
UTILITIES DEPARTMENT
EFFECTIVE DATE: JUNE 26, 1989
REVISION DATE: October 16, 2008
ELECTRIC OPERATING PROCEDURE NO. 20
TITLE: EMERGENCY STAGE ALERTS, BROADCASTS and LOAD DROP
PROCEDURE
Contents:
I .
Preface
II.
Responsibilities
III.
Procedures
I V .
References
V .
Table 1— Circuit Load. Drop Schedule
VI .
Table 2 — Traffic Si nal List
V I I .
Stage Alert Broadcast Procedure
VI I I .
Stage Alert Broadcast Files (form files)
I. Preface
This operating procedure is in support of the Western Electric Coordinating
Council (WECC) operating reserve requirements, the California Independent
System Operator's (ISO) Operating Procedures E-502, E-504, E-508 and
Southern California Edison's (SCE) Operating Bulletin #21 entitled "Capacity
Shortage Contingency Plan". The program is comprised of a series of notices.
A Stage 3 alert occurs when the spinning portion of generation operating reserves
in the ISO Control Area fall below the WECC operating reserve requirements.
Under Stage 3 condition, rolling outages may begin.
Orders to drop or restore City of Vernon (COV) load will come from the ISO. As
a Participating Transmission Owner (PTO) and a Scheduling Coordinator (SC),
the COV Control Center will have real-time knowledge of Stage Alert conditions.
Load segments will be de -energized for periods of approximately one [1] hour.
After one hour, the ISO may renew the order depending on system conditions.
This is repeated until the emergency condition has concluded.
II. Responsibilities
The COV Systems Coordinator I shall implement the load -drop procedure
immediately after official notification from the ISO.
The COV Systems Coordinator I shall record all events relative to this procedure
in the Systems Log in accordance with General Operating Procedures No. 5,
Systems Log.
In the event that a "scheduled" COV distribution circuit is found to have critical
load (utility facility, police/fire, medical) during an emergency manual load drop,
a situation that was not recognized or had developed after the circuit was
scheduled, it maybe substituted with a circuit of similar total load.
The COV Transmission& Distribution Manager shall regularly maintain, review
and update emergency load drop information including:
Emergency Load Drop Schedule (see Table 1)
2. Traffic Signal List (see Table 2)
The COV Police Department shall be provided with a Traffic Signal List for its
use during outages caused by the "emergency load drop" incident. The actions
pursued by the COV Police Department will be at its discretion. The intent of the
Traffic Signal List is to provide reasonable response by the COV Utilities
Department and the COV when traffic signals are deactivated by this operating
procedure. The COV Control Center shall notify the COV Community Services
Department (CSD) and/or Stand -By personnel of intersections without power.
The COV Systems Coordinator I on duty shall also implement the COV customer
Stage Alert Broadcast Procedure.
III. Procedure
After each load curtailment notification, the COV Systems Coordinator I
shall perform the required operation to alleviate the emergency condition:
1. Notify Matheson Tri Gas (M-TGas) that the COV is implementing
load drop procedure and take M-Tgas off line. This can be
accomplished with cooperation with M-Tgas allowing them to
curtail load..Since M-Tgas is on an interruptible load schedule, they
may be dropped up to 10 times per month and not to exceed 24
times per year. The outage may not last longer than 12 hours per
occurrence. Document all information in accordance with EOP 6
System Log.
2. Notify Owens Brockway and verify they are a willing participant to
Drop Owill Substation Oxygen bank load. Owens is not obligated to
participate at this time; however, if they are willing to assist, the load
is available for curtailments Mondays through Thursdays not to
exceed 12 hrs per week. This will be enacted for drops of about 2.5
mw. Verify and record load before and after. Adhere to switching
procedure, OWILLST3.
3. Drop loads in accordance with Table 1, starting at the bottom with
block 17 (M-Tgas) and working up to the top through block 1. Enact
this step whenever steps 1 and 2 above cannot meet the City's
curtailment requirement.
Every effort shall be made to provide notice to the COV
customers that will be without electric service.
Should any substation supervisory control equipment be inoperative at the time of
an emergency load drop situation, a COV qualified operator shall be dispatched to
the substation, and shall remain at the substation until the emergency situation ends.
Each rotating outage is intended to. be for a period of approximately one [ 1 ] hour.
Time permitting, before shedding load (COV distribution circuits):
l . Notify the COV Police Dispatcher of the traffic signals out. The traffic
signal locations are indicated on Table #2.
2. Notify COV CSD and/or Stand -By personnel of traffic signals out of power.
3. Notify the COV Transmission & Distribution Manager and the COV Light
& Power Director that Stage III of the ISO load drop contingency plan has
been initiated.
After an emergency load drop. stage has been officially terminated and switching is
complete, notify the COV Police Dispatcher that all circuits; which were de -
energized, are now energized and that the affected traffic signals should now be
normal.
IV. References the following documents should be reviewed in conjunction with this
procedure:
SCE SOB No. 21, Capacity Shortage Contingency Plan (10/0 1 /200 1).
ISO E-502, E-504, E-508.
Approved:
arlos R. Fandino Jr.
Transmission & Distribution Manager
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Table 1 - Load Drop Schedule
Block
Feeder
Load
Traffic Signals
Special Conditions/Notes
1
1
2
19
1.8
3.6
3.1
PaciticlFrultland
Santa Fe / Fruitland
Pert. Freezer Service - One of 50 largest.
Liquid Cont. - One of 50 largest.
8.5
2
23
5.0
Soto / Leonis
5
2.0
Santa FeNernon
7
2.7
Santa Fe/37-38th; 28th; 27th
Hannibal Ind. - One of 50 largest.
9.7
3
6
21
1.6
5.0
Santa Fe/48th
IVY Hill - One of 50 largest.
Byron Jackson 2300 Vernon
13
2.6
9.2
4
14
2.8
15
2.2
17
1.5
16
3.3
Boyle/Leonis; Soto/Fruitland
9.8
5
48
1.0
Boyle/Fruitland
49
1.4
50
2.3
Santa Fe/25th-26th
54
2.6
69
14
DowneyNernon Downey/Bandini
8.7
6
56
2.4
58
0.1
59
2.8
Alcoa/Fruitland
60
4.5
9.8
7
61
1.4 Leonis/Alcoa; Downey Rd.
62
2.5
63
64
3.2
3.0 Slauson/Alcoa
City Wells#12 & 17and Booster Plant #2
10.1
8
65
3.0 Downey/Fruitland
Booster Plant 43
66
67
3.3
3.4
City Well #19
68
0.6
10.3
9
Rendering
4.3
Ideal
10.0
14.3
10
Sierra Pine
9.2
Bandini/Sierra Pine
11
Basque
11.7
S. BoylelSlauson
12
Steer
12.3
13
Ziemer
5.8
Bandini/Bonnie Beach; Sunol
14
Brearle
11.3
15
Davis
5.5
E. Washington/Hobart
Kaeser
9.4
Pump House 42
14.9
16
Mailliard
8.0
17
M-Tgas
12.0
Mat-Tri-Gas
Table 2 - Traffic Signal List
Circuit
Intersection
Corner - Meter No.
Pole
Basque
S. Boyle/Slauson
S/E - 203108
10499EV
Ziemer
Ziemer
Bandini/Bonnie Bch.
Sunol/Bandini
N/W - 2.0349
S/W - 203109
EV8389
EV8506
Norris
Norris
Norris
S. Atlantic/District
Bandini/L.B. Frwy.
Atlantic/Box USA
S/E - 83434030
S/W - 3110637
1419124E
7320EV
Davis
E. Washington/Hobart
S/W - 3110650
EV9327
Sierra Pine
Bandini/Sierra Pine
N/W - 5887163
8121EV
Gold Pack
Santa Fe/Vernon
N/W - 90530730
6605EV
Carl
Loma Vista/District
N/W - 2035712
1323VP
2
Pacific Blvd/ Fruitland
N/E - 203-6
1211V
5
Santa Fe/Vernon
N/W - 203-56
EV10401
6
4,8th & Santa Fe
S/E - 37953346
6519EV
7
7
7
Santa Fe/37-38th St
Santa Fe/28th St
Santa Fe/27th St
W/SIDE - 20859425
S/W - 203-53
S/W - 83434095
6708EV
6685EV
773447H
8
Soto/Vernon
S/E - 5390403
5347EV
9
S. Soto/E. 26th St
N/W - 203-47
7500EV
16
16
Boyle Ave/Leonis
Soto/Fruitland
S/W - 5394846
WE - 83434031
EV9955
1422VP
19
Santa Fe/Fruitland
N/E - 203-17
10645EV
20
20
20
S. Soto/E. 37tn St
Jewel Ave/E. 37th St
Soto/Farmer John
N/E - 80360402
S/W - 7439752
EV10428
1106VP
23
S. Soto/Leonis
N/W - 83434027
1438049E
25
Pacific Blvd/Leonis
S/W - 2035711
1567241E
28
Santa Fe /55th 5t
S/E - 203-48
53V
47
Santa Fe/25-26tn St.
N/E - 53775 6
337312M
48
S. 'Boyle/Fruit,land
S/W - 20839971
1369228E
53
E. S.lauson Ave/Downey
N/W - 203-64
10632EV
59
Alcoa Ave/Fruitland
S/E - 203-2
6019EV
61
61
Alcoa/Leonis
Downey/Leonis
S/E - 203-9
1286V
64
E. Slauson Ave/Alcoa
N/E.- 53:93873
613V
65
Downey Rd/Fruitland
N/W - 203-45
7117EV
69
69
Downey/Vernon
Downey/Bandini
N/W - 5388386
1359VP
VIII. Stage Alert Broadcast Procedure
Pax and e-mail procedure
1) Revise the document to be e-mailed or faxed.
a) Stage 1
1. Open Stagel document form letter.
2. Revise the time duration of the emergency.
Carefully check the document for relevance and
accuracy.
3. Save file as lstagemmdd.doc. under
pwrplt/ccse.rver/stage alerts
Example: For Stage 1 emergency on Friday, August
18th 2000, the file will be saved as
1stage081800.doc.
b) Stage 2
1. Open Stage2 document form letter.
2. Revise the time duration of the emergency.
3. Insert the next two blocks that will be likely
to get curtailed. The block numbers are
numerical; i.e. #1, 2, 3 to correspond with the
block numbers assigned to customers. Carefully
check the document for relevance and accuracy.
4. Save file as 2stagemmdd.doc. under
pwrplt/ccserver/stage alerts
Example: For Stage 2 emergency on Saturday,
August 19th2000, the file will be saved as
2stage0B1900.doc.
c) Stage 3
1. Open Stage3 document form letter.
2. Insert the next two block numbers that will be
curtailed.
J
3. Insert the most recent rolling blackout
schedule using the designated sequence.
Carefully check the document for relevance and
accuracy.
4. Save file as 3stagemmdd.doc. under
pwrplt/ccserver/stage alerts
Example: For Stage 3 emergency on Sunday,
August 20th 2000, the file will be saved as
3stage082000.doc.-
2b) E-mailing Stage Emergencies
a) Log on to the controlcenter e-mail profile.
b) Select the "AAA... Stage Alert Dist. List" in the contacts section of the
Global e-mail directory.
c) Attach the corresponding Stage Alert notice.
d) Send.
NOTE: Do not change, add, delete, or revise the distribution list.
IX. Staue Alert Broadcast Files (form files)
ni TO
Slegel.doc StageZdoe
See other Stage Alert files under CCServer/Stage Alerts.
EOP 6 - MATHESON TRI-GAS OPERATING PROCEDURES FOR
INTERRUPTIBLE LOAD
These procedures will be implemented when there is an ISO Stage 2 declared or upon the
unscheduled outage of the Malburg Generating Station and the real-time replacement
power prices exceeds 15% above the MGS variable cost.
Notes
1. Expect about a 12.5 mw load drop.
2. The Periods of Interruption will not exceed ten per month or twenty-four per year
nor last longer than 12 hours.
Control Center Responsibilities
Control Center shall contact Matheson Tri-Gas as soon as a Stage 2 is declared or
when the MGS trips off line and the real-time power prices exceed
$ (see above).
2. The System Coordinator (SCI) on shift will advise Matheson Tri-Gas of the
following:
a. Time that curtailment will start
b. Duration of outage
3. The SCI will record Matheson's load from SCADA, the time call was placed and
the name of the Plant Operator and enter information in the system log.
4. Record Matheson's load from SCADA 30 minutes after the initial call was placed
and record in the system log. In the event they do not shed load within 30
minutes the SCI on shift will record the exact time when the load shed has taken
place.
5. When the interruption -period has ended the SCI will notify Matheson Tri-Gas
Plant Operator, and record Matheson's demand after load is restored.
Matheson Tri-Gas Responsibilities
1. Plant Operator at Matheson will shed a minimum of 12.5 MVO's within 30
minutes of receiving a call for City of Vernon Control Room.
2. Matheson Tri-Gas will also be responsible for notifying the SCI on duty in case of
a plan trip or when the plant will go off-line due to a stop in production or
maintenance. The plant operator will provide an estimated duration of the outage,
which will allow the SCI on shift to adjust the real-time schedule accordingly.
Contacts:
• Matheson Tri--Gas - Plant Operator on Duty: (323) 560-2481 (Primary)
Bill Tholen: (626) 780-8404 (Secondary)
• Vernon Coordinator on Duty: (323) 826-1461
CITY OF VERNON MSS AGREEMENT
SCHEDULE 10A
ROTATING LOAD CURTAILMENT PROCEDURES
[Section 7.4.3]
Vernon rotating Load curtailment procedures are described in Schedule 10. To
maintain the required amount of continuously interrupted Load, as directed by the
CAISO, for an extended amount of time, no portion of Vernon's interrupted Load shall
be restored unless an equal or greater amount of Load is interrupted first, as necessary
to maintain the required amount of interrupted Load.
49
CITY OF VERNON MSS AGREEMENT
SCHEDULE1013
INTERRUPTIBLE LOAD
[Section 7.4.3]
Vernon has not implemented a program for interruptible Loads.
Should Vernon seek to implement any interruptible Load program, Vernon shall provide
a complete description of the program to the CAISO at least sixty (60) days prior to the
incorporation of the program into the Vernon EEP, and all applicable Operating
Procedures shall be followed.
CITY OF VERNON MSS AGREEMENT
SCHEDULE 11
ELECTRICAL EMERGENCY PLAN
[Section 7.5.1]
The City of Vernon currently supports SCE's EEP program as reflected in
Vernon's Electric Operating Procedure No. 7 which is incorporated herein by
reference pursuant to Schedule 8 and Vernon's Electric Operating Procedure No.
20, which is incorporated herein by reference pursuant to Schedule 10.
For purposes of this Agreement, Vernon and the CAISO agree that the Vernon
EEP shall be interpreted to provide that:
1) Vernon shall continue to act upon CAISO instructions in accordance with the
provisions of Article VII and cause the required amount of Vernon firm Load to
be interrupted during any hour of any day (24 x 7);
2) Vernon shall satisfy its requirement to interrupt the required amount of firm
Load within ten minutes from the time of notification by the CAISO dispatcher;
3) the implementation of any substitution of back-up generation and "voluntary"
Load interruptions, on an "as -available" basis, for the required amount of firm
Load interruption, as set out in the Vernon EEP and incorporated herein by
reference, shall not obviate or interfere with required timely compliance;
4) should Vernon use, wholly or partially, any combination of back-up generation
or "voluntary" Load interruption to substitute for an amount of its firm Load
interruption obligation, the effects of such substitution shall be no different
than those that would have resulted from an equivalent amount of firm Load
interruption without such back-up generation or voluntary Load interruption,
and the actual cumulative effect(s) of such substitution shall be subject to the
same rules of verifiability and reporting as those for the firm Load
conventionally interrupted on such occasions; and
5) should rotation of Vernon's firm Load blocks be required to maintain a
minimum amount of continuously interrupted Load, as defined by the CAISO
dispatcher in accordance with the provisions of Article VII, for an extended
amount of time, no block of Vernon's firm Load shall be restored unless an
equal or greater amount of another block of Load is interrupted first, and in
the event Vernon uses any combination of substitutions for its firm Load
interruption obligation as permitted in section 4) above, any rotation of, or
changes to, such substitutions shall be made such that the equivalent
required Load relief level is maintained during the entire applicable time.
51
CITY OF VERNON MSS AGREEMENT
SCHEDULE 12
LOAD RESTORATION
[Section 7.4.4]
Vernon shall follow the procedures set forth below in this Schedule 12 in promoting
orderly, coordinated restoration of electric systems after a major system disturbance
has occurred which resulted in Load Shedding by frequency relays in California.
Immediately after Load Shedding by frequency relay(s) has occurred in
Vernon's System, Vernon shall remain in contact with the Area Control
Center (ACC) specified by the CAISO, currently the SCE ACC, until
normal frequency has been restored throughout the CAISO Balancing
Authority Area or the CAISO Shift Supervisor has concluded that such full-
time communications can be terminated. Emergency communications
over the California ACC Hot-line will be under the direction of the CAISO
Shift Supervisor and the senior dispatcher present at the SCE ACC(s).
2. Manual Load restoration shall not normally be initiated until the California
ACC Hot Line is attended. No Load is to be manually restored unless
directed by the CAISO, either directly or through its assignee, provided
that the procedure for the CAISO's designation of any assignee is agreed
to by Vernon, after the frequency has recovered and there is indication
that the frequency can be maintained. Vernon shall await direction from
the CAISO or its assignee, who will be in contact with the CAISO Shift
Supervisor. The CAISO Shift Supervisor shall determine whether
adequate Generation resources are available on line to support the Load
to be restored.
3. Vernon's automatic Load restoration will be consistent with the WECC
Coordinated Off -Nominal Frequency Load Shedding and Restoration Plan.
4. If the CAISO cannot meet the WECC and NERC Balancing Authority Area
Disturbance Control Standard or the Control Performance Standard post
disturbance, no manual Load restoration shall be permitted. If the
frequency is such that automatic Load restoration occurs under these
conditions, if Vernon has restored Load automatically, it will manually shed
an equivalent amount of Load to offset the Load which was automatically
restored.
5. Restoration of ties and off -site power supply to nuclear generating facilities
should be given top priority. Manual Load restoration will be deferred
during periods of tie restoration. Vernon should be equipped and
prepared to drop Load manually when necessary to allow frequency
recovery sufficient to re-establish CAISO intra-area ties and Interties
between the CAISO Balancing Authority Area and outside systems.
Where manual Load Shedding is required, the CAISO shall make
reasonable efforts to allocate the Load Shedding requirement equitably
52
CITY OF VERNON MSS AGREEMENT
among Vernon, UDCs, and MSS Operators where Load Shedding shall be
beneficial, and such Load Shedding shall be made in accordance with
Section 7.4.
6. Vernon shall use its existing plans and priorities to restore Load within the
parameters given by the CAISO, giving the appropriate priority to essential
services such as military, public safety agencies, water treatment plants,
sewage treatment plants, etc.
53
CITY OF VERNON MSS AGREEMENT
SCHEDULE 13
[NOT USED]
54
CITY OF VERNON MSS AGREEMENT
SCHEDULE 14
GENERATING UNITS AND MARKET -PARTICIPATING LOADS
[Sections 10.1 and 10.5]
Vernon has identified in the attached table all of the individual Generating Units that it
owns or controls in the CAISO Balancing Authority Area, together with certain
information required by the CAISO. Vernon does not currently have any Curtailable
Demand eligible to participate in the CAISO Markets as market -participating Load.
55
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CITY OF VERNON MSS AGREEMENT
SCHEDULE 14 A
GENERATING UNITS AND MARKET -PARTICIPATING LOADS
[Section 11.1]
1. Vernon's Generating Units
a. Malburg Generating Station including CTG Unit 1 & 2 and STG Unit 3
b. H. Gonzales Unit 1 & 2
2. Vernon's Entitlement from the Boulder Canyon Power Project (Hoover Dam)
through Vernon power purchase agreement with Western Area Power
Administration.
3M
CITY OF VERNON MSS AGREEMENT
SCHEDULE 15
METERING OBLIGATIONS
[Section 12.2]
Obligations and Rights of Vernon
1.0 Submission of Meter Data through the CAISO's Settlement Quality Meter
Data Systems ("SQMDS") Revenue Meter Data Acquisition and Processing
System ("RMDAPS"). Vernon agrees to make available to the CAISO through
SQMDS and RMDAPS its Meter Data in accordance with the CAISO Tariff. The
CAISO's requirements regarding the frequency with which it requires Meter Data
to be made available to it through SQMDS and RMDAPS by Vernon are referred
to in the CAISO Tariff and the Business Practice Manual for Metering.
1.1 Meter Information. Vernon shall provide in the format prescribed by Schedule
15.1 the required information with respect to all of its meters used to provide
Meter Data to the CAISO. Vernon must immediately notify the CAISO of any
changes to the information provided to the CAISO in accordance with this
Section and provide the CAISO with any information in relation to such change
as reasonably requested by the CAISO. Vernon shall have the right to modify
Schedule 15.1, although such modification shall not constitute an amendment to
this Agreement.
1.2 Transformer and/or Line Loss Correction Factor. Vernon shall use the loss
correction factor referred to in the Laguna Bell -Vernon Interconnection Service
Agreement.
1.3 Rights to Access Metering Facilities. Vernon shall use its best efforts to
procure any rights necessary for the CAISO to access all Metering Facilities of
Vernon to fulfill its obligations under the CAISO Tariff, and its obligations under
this Agreement. If, after using its best efforts, Vernon is unable to provide the
CAISO with such access rights, Vernon shall ensure that an CAISO Authorized
Inspector undertakes, at the CAISO's request, the certification, testing, inspection
and/or auditing of those Metering Facilities in accordance with the procedures
established pursuant to the Business Practice Manual for Metering and the
CAISO Tariff, including the requirement to complete and provide to the CAISO all
necessary documentation. The CAISO acknowledges that it will not be
prevented from fulfilling its obligations under the CAISO Tariff or this Agreement
by reason of the fact that it is provided with escorted access to the Metering
Facilities of Vernon.
1.4 Security and Validation Procedures. The security measures and the
validation, editing, and estimation procedures that the CAISO shall apply to
57
CITY OF VERNON MSS AGREEMENT
Meter Data made available to the CAISO by Vernon shall be as referred to in the
CAISO Tariff and the Business Practice Manual for Metering.
1.5 Authorized Users. In addition to the persons referred to in the CAISO Tariff,
including Vernon and the relevant Scheduling Coordinator, as being entitled to
access Meter Data on SQMDS, Vernon may set forth in Schedule 15.2 of this
Agreement any additional authorized users that shall be entitled to access
Vernon's Settlement Quality Meter Data held by the CAISO. Vernon shall
include in Schedule 15.2 as authorized users the relevant UDCs and TOs. The
CAISO shall provide the authorized users with any password or other information
necessary to access Vernon's Settlement Quality Meter Data held by the CAISO
on SQMDS. Any amendment or addition to Schedule 15.2 shall not constitute an
amendment to this Agreement.
1.6 Certification, Inspection, and Auditing of Meters. Vernon shall be responsible
for all reasonable costs incurred by the CAISO or a CAISO Authorized Inspector
in connection with them carrying out the certification, inspection, testing or
auditing of the meters identified in Schedule 15.1 from which Vernon provides
Meter Data to the CAISO. The CAISO or CAISO Authorized Inspector shall
furnish Vernon, upon request, an itemized bill for such costs.
Obligations and Rights of the CAISO
2.0 Direct Polling of Revenue Quality Meter Data. The CAISO shall allow the
Scheduling Coordinator representing Vernon and all authorized users to directly
poll CAISO certified meters for the Meter Data relating to Vernon in accordance
with the procedures referred to in the CAISO Tariff and the Business Practice
Manual for Metering.
2.1 CAISO as a Third -Party Beneficiary. The CAISO shall be a third -party
beneficiary to any future agreement between Vernon and any other party relating
to the Metering Facilities of Vernon for the purpose of granting the CAISO access
to any relevant information, records and facilities as needed by the CAISO to
fulfill its obligations under the CAISO Tariff and its obligations under this
Agreement.
2.2 Remote and Local Access to Metering Data. The CAISO shall provide Vernon
any password or other requirements necessary for Vernon to access its Meter
Data remotely or locally at the meter.
Calculation of Vernon Settlement Quality Meter Data
The calculation of Vernon's Settlement Quality Meter Data ("SQMD") shall be made in
accordance with a calculation procedure that is mutually agreed by the Parties, which
calculation procedure will generally be as follows:
58
CITY OF VERNON MSS AGREEMENT
Vernon SQMD = MSS Meter Data at the Points of MSS Interconnection
or Points of Delivery + Meter Data for Generation from
Generating Units within the MSS
59
CITY OF VERNON MSS AGREEMENT
SCHEDULE 15.1
METER INFORMATION
Facility Name/Location Resource ID Meter ID
Laguna Bell Substation N/A 5910508
6301 S. Garfield, City of Commerce 5910509
5910510
5910511
5910512
H. Gonzales Unit #1 VERNON_6_GONZL1 5910505
2715 E. 50th St., Vernon, Ca
H. Gonzales Unit #2 VERNON_6_GONZL2 5910506
2715 E. 50th St., Vernon, Ca
Malburg Generating Station VERNON_6_MALBRG
2715 E. 50'h Street, Vernon
Combustion Turbine No.1 5910407
5910408
5910409
5910410
Combustion Turbine No.2 5910411
5910412
5910413
5910414
Steam Turbine No.1 5910415
5910416
5910417
5910418
Auxiliary Meters 5910419
5910420
5910421
5910422
.e
CITY OF VERNON MSS AGREEMENT
SCHEDULE 15.2
ACCESS TO METER DATA
AND AUTHORIZED USERS
[Vernon shall provide in Schedule 15.2 a list of all authorized users of Vernon's
Settlement Quality Meter Data and any restrictions or limitations placed on them.]
Southern California Edison (read only)
61
CITY OF VERNON MSS AGREEMENT
SCHEDULE 16
[NOT USED]
r-N
CITY OF VERNON MSS AGREEMENT
SCHEDULE 17
CONTACTS FOR NOTICES
[Section 19.1 and 3.4.3]
Vernon
Name of Primary
Representative:
Donal O'Callaghan
Title:
Director of Light & Power
Address:
4305 Santa Fe Ave.
City/State/Zip Code:
Vernon, CA, 90058
Email Address:
docallaghan@ci.vernon.ca.us
Phone:
323 583-8811
Fax No:
323 826-1438
Name of Alternative
Representative:
Abraham Alemu
Title:
Electric Resources Planning & Development Manager
Address:
4305 Santa Fe Ave.
City/State/Zip Code:
Vernon, CA, 90058
Email Address:
aalemu@ci.vernon.ca.us
Phone:
323 583-8811
Fax No:
323 826-1425
Authorized Representative (§ 3.4.3):
Representative:
Dennis M. P. Ehling, Esq.
Address:
10100 Santa Monica Blvd, 7th Floor
City/State/Zip Code:
Los Angeles, CA, 90067
Email Address:
dennis.ehling@klgates.com
Phone:
310 552-5090
Fax No:
310 552-5001
CAISO
63
CITY OF VERNON MSS AGREEMENT
Name of Primary
Representative:
Roni L. Reese
Title:
Senior Contracts Analyst
Address:
151 Blue Ravine Road
City/State/Zip Code:
Folsom, CA 95630
Email Address:
rreese@caiso.com
Phone:
(916) 608-7027
Fax No:
(916) 608-7292
Name of Alternative
Representative:
Philip D. Pettingill
Title:
Manager of Infrastructure Policy & Contract Negotiation
Address:
151 Blue Ravine Road
City/State/Zip Code:
Folsom,, CA 95630
Email Address:'
ppettingill@caiso.com
Phone:
(916) 608-7241
Fax No:
(916) 608-7292
Authorized Representative (Section 3.4.3):
Representative:
Jim Detmers
Title:
Vice President, Operations
Address:
151 Blue Ravine Road
City/State/Zip Code:
Folsom, CA 95630
Email Address:
jdetmers@caiso.com
Phone:
(916) 351-2123
Fax No:
(916) 351-2350
64
CITY OF VERNON MSS AGREEMENT
SCHEDULE 19
MSS LOAD FOLLOWING DEVIATION ENERGY FORMULA
[Section 13.12]
Currently the City of Vernon has elected not to follow its Load
[.&
CITY CLERK'S OFFICE
INTER -OFFICE MEMORANDUM
DATE: December 8, 2008
TO: Donal O'Callaghan, Director of Light & Power
FROM: Nelly Giron, City Clerk
RE: Resolution No. 9767 - A Resolution of the City Council
of the City of Vernon Approving and Ratifying the
Execution of an Amended and Restated Metered Subsystem
Agreement By and Between the City of Vernon and the
California Independent System Operator
Transmitted herewith is a copy of Resolution No. 9767,
referenced above, which was approved and ratified by City
Council on November 24, 2008, along with a copy of the fully
executed agreement attached as "Exhibit A".
Thank you.
NG:dr
c: Resolution No. 9767
Agreement 08-113
INTEROFFICE
Light & Power Department
DATE: November 4, 2008
TO: Eric Fresch, City Administrator
MEMORANDUM
APPROVED NOV 2 4 '08 CITY COUNCIL
CITY CLERK DISTRIBUTION
Il it' jol - R- 914 A04 9.'DA
061 u AL,S To rx SI w 6
FROM: Donal O'Callaghan, Director of Light & Power RGig e T161
SUBJECT: California Independent System Operator Corporation and City of
Vernon Amended & Restated Metered Subsystem Agreement
The Light & Power Department received two original agreements from the California
ISO on the Amended and Restated Metered Subsystem Agreement for execution at
the November 17, 2008 City Council meeting. Due to the cancellation of the
November 17 meeting, the Light & Power Department will be returning one of the
originals with an executed date of November 17, 2008 back to the California ISO in
time for their submittal to the FERC.
The Light & Power Department is requesting ratification to the remaining original
agreement at the November 24 City Council meeting. Attached for City Council
ratification is the California Independent System Operator Corporation and City of
Vernon Amended & Restated Metered Subsystem Agreement, Staff Report and
Resolution No. XXXX.
DOC:rmt
Attachments
c: Abraham Alemu
Document Control
X
CITY OF VERNON LIGHT & POWER DEPARTMENT
STAFF REPORT REGARDING THE PROPOSED AMENDED
METERED SUBSYSTEM AGREEMENT BETWEEN THE CITY OF
VERNON AND THE CALIFORNIA INDEPENDENT SYSTEM
OPERATOR
The City of Vernon ("City") and the California Independent System Operator ,
("CAISO") entered into a Metered Subsystem Agreement ("MSSA") in 2005 to
govern the relationship between the two parties. The CAISO's impending Market
Redesign and Technology Upgrade ("MRTU") requires that the current MSSA be
amended so as to incorporate various changes associated with the MRTU.
Staff has determined that the Amended MSSA maintains the basic principles
and benefits of the original MSSA. This staff report supports a recommendation that
the City ratify the Amended MSSA, effective as of the implementation of MRTU.
SUMMARY
On or about October 19, 2005, the City entered into an MSSA with the
CAISO. The purpose of the MSSA was to allow Vernon to convert from a Utility
Distribution Company ("UDC") to a Metered Subsystem ("MSS") and thereby change
the manner in which the CAISO regulates Vernon's production and distribution of
electricity.
The MSSA has the following three functions:
(1) To establish the terms and conditions under which Vernon operates its
generating units with the CAISO Balancing Authority Area;
(2) To establish the terms and conditions under which Vernon (or its
Scheduling Coordinator) submits bids and self -schedules into the CAISO Balancing
Authority Area and the CAISO markets;
(3) To set forth the manner in which the City and CAISO meet their
obligations under the CAISO Tariff.
Under the CAISO Tariff an MSS is defined as a geographically contiguous
Staff Report
Amended MSSA
Page 2 of 3
system located within a single zone, which operates as an electric utility and is
subsumed within the CAISO Balancing Authority Area. The City benefits from
being classified as an MSS by operating on a "cost -causation" basis in regards to
certain CAISO costs. Under this system the City avoids having to contribute to
certain costs borne by the CAISO but in return the City is obligated to manage its
own subsystem. -
The City has operated under the MSSA since it was implemented on
December 1, 2005. However, the current MSSA is going to be made obsolete by
various technical changes resulting from the pending implementation of the
MRTU. The MRTU implementation date was recently suspended pending further
testing but the CAISO still plans. on full implementation currently estimated for
February 1, 2009. Thus, the City must adopt and agree to an Amended MSSA in
order to participate in the CAISO markets and schedule load.
ANALYSIS
The purpose for amending the MSSA is to align the text of the document
with the prospective market design that will be enacted by the MRTU. The
MRTU will see technical changes to both the CAISO Tariff and Business Practice
Manuals, to include fully integrating the regulations governing Metered
Subsystems into the CAISO Tariff. Furthermore, the new CAISO Tariff
incorporates new terms and definitions and also redefines a great many terms.
The CAISO has also taken this opportunity to generally clarify and better
organize the language of the MSSA.
The main difference between the current MSSA and the Amended MSSA
is nomenclature. City Light & Power Department Staff have worked closely with
the CAISO to ensure that the proposed Amended MSSA remains true to the
principles of the original MSSA, as well as protecting the benefits enjoyed by the
City under the original MSSA.
The Amended MSSA provides that it is effective on the later of the
Staff Report
Amended MSSA
Page 3 of 3
acceptance by FERC of the Amended MSSA or the implementation of MRTU by
CAISO. With the current delay in implementation of MRTU, it is expected that
the Amended MSSA will be accepted by FERC before MRTU is actually
implemented. The Amended MSSA, by its own terms will not be effective until
MRTU is implemented, which means that the City and CAISO will continue to
operate under the current MSSA until MRTU is implemented. However, since
the current MSSA will be obsolete when MRTU is implemented, Staff believes it
appropriate to ratify the Amended MSSA now, to be effective on the date which
CAISO implements MRTU.
RECOMMENDATIONS
1. Ratify and authorize the Director of Light & Power to immediately execute the
Amended MSSA on behalf of the City, provided that the Amended MSSA is
effective no earlier than the date of CAISO's implementation of the MRTU.
l
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
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE LIGHT AND POWER DEPARTMENT
TO ENTER INTO AN AMENDED METER SUBSYSTEM
AGREEMENT WITH THE CALIFORNIA INDEPENDENT SYSTEM
OPERATOR PURSUANT TO THE UPCOMING MARKET REDESIGN
AND TECHNOLOGY UPGRAGE.
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's Light & Power Department currently
operates pursuant to a Metered Subsystem Agreement ("MSSA") with the
California Independent System Operator ("CAISO"); and
WHEREAS, the CAISO is implementing a Market Redesign and
Technology Upgrade ("MRTU") at a future date not yet specified; and
WHEREAS, the implementation of the MRTU will render certain
1provisions of the current MSSA obsolete; and
WHEREAS, the City's Light & Power Department, in consultation
lwith the CAISO, has drafted an Amended MSSA that aligns the language of
the current MSSA with the prospective CAISO market design while
maintaining the basic principals and benefits of the current MSSA; and
WHEREAS, the City Council has considered the report of the
Light & Power Department staff and other testimony offered during an
open meeting of the City Council regarding whether ratification of the
Amended MSSA is in the best interest of the City; and
WHEREAS, the City Council has concluded based upon that
evidence that it would be in the best interests of the City to ratify
the Amended MSSA, and to authorize the Director of Light & Power to
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execute the Amended MSSA to be effective as of the date of
implementation of the MRTU.
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
further finds and determines as follows:
A. That ratification of the Amended MESA is necessary
to allow the City to continue to effectively provide electrical service
to its customers; and
B. The Amended MSSA maintains the basic principles
and benefits of the current MSSA.
SECTION 3: The City Council of the City of Vernon hereby
authorizes and directs the Director of Light & Power to execute the
Amended MSSA on behalf of the City, to be effective on the date that
MRTU is implemented by the CAISO.
SECTION 4: 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 24th day of November, 2008.
ATTEST:
City Clerk
LEONIS C. MALBURG, Mayor
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, , City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. XXXX, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, November 17, 2008, and
thereafter was duly signed by the Mayor of the City of Vernon.
(SEAL)
City Clerk
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