Resolution No. 10091in
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RESOLUTION -NO. 10,091
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ADOPTING A NEW TRANSMISSION REVENUE
REQUIREMENT FOR 2010 IN ACCORDANCE WITH VERNON'S
TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF
SHEET CHANGES TO IMPLEMENT THE TRANSMISSION
CONTRACT ADJUSTMENT FOR HIGH VOLTAGE TRANSMISSION
ENTITLEMENTS
WHEREAS, the City of Vernon ("City") is a chartered
(municipal corporation of the State of California that owns and
loperates a system for the generation, purchase, transmission,
Idistribution and sale of electric capacity and energy; and
WHEREAS, the City is a Participating Transmission Owner
("PTO") with the California Independent System Operator ("ISO"), and
the Federal Energy Regulatory Commission ("FERC") has approved its
existing Transmission Owner Tariff ("TO Tariff"); and
WHEREAS, the ISO, through charges assessed ISO customers
under the ISO Open Access Transmission. Tariff, reimburses the City
according to the City's current Transmission Revenue Requirement
("TRR") in return for the City turning over to the ISO the operation
and control.of the City's transmission entitlements; and
WHEREAS, the City's transmission entitlements include rights
under certain contracts (each an "Existing Transmission Contract" or
"ETC") including (i) an agreement with the City of Los Angeles
Department of Water and Power entitled "Los Angeles -Vernon Adelanto-
Victorville-Lugo Firm Transmission Service Agreement" (the "LAWDP
ETC"); (ii) an agreement with Southern California Edison Company
("SCE") entitled "Amended and Restated Edison -Vernon Victorville-Lugo
Firm Transmission Service Agreement" (the "SCE Victorville-Lugo ETC");
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and (iii) an agreement with SCE entitled "Amended and Restated Edison -
Vernon Mead Firm Transmission Services Agreement" (the "SCE Mead
IETC"); and
WHEREAS, the City's costs under the LADWP ETC, the SCE
Victorville-Lugo ETC, and the SCE Mead ETC have traditionally been
based upon a negotiated fixed "path -specific" rate charged by LADWP or
SCE, based on the actual costs of the specific transmission lines made
available under each ETC, multiplied by the amount of transmission
capacity guaranteed to the City under each ETC; and
WHEREAS, the City's costs under the LADWP ETC, the SCE
Victorville-Lugo ETC, and the SCE Mead ETC are reflected in the City's
current TRR; and
WHEREAS, on August 1, 2008, SCE filed proposed revisions to
its TO Tariff with the Federal Energy Regulatory Commission ("FERC")
in FERC Docket Nos. ER08-1343-000 and ER08-1353-000, seeking to amend
the pricing structure under the SCE Victorville-Lugo ETC and the SCE
Mead ETC to transition the negotiated path -specific rates set forth in
those ETCs to a "postage -stamp" rate which reflects the uniform High
Voltage Existing Contracts Access Charge ("HVECAC Rate") in SCE's TO
Tariff for the actual usage of SCE's transmission lines by customers
of the ISO; and
WHEREAS, the HVECAC Rate in SCE's TO Tariff is derived from
SCE's TRR and, therefore, will change each time SCE amends its TRR;
and
WHEREAS, on September 30, 2008, FERC accepted, subject to
refund and hearing and settlement procedures, SCE's proposed revisions
to its TO Tariff to transition the negotiated path -specific rates set
forth in the SCE Victorville-Lugo ETC and the SCE Mead ETC to the
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=
11uniform HVECAC Rate, and thus the City's costs under those ETCs will
11vary proportionately with any changes in SCE's TRR; and
WHEREAS, the City reached a settlement agreement (the "SCE
IlSettlement") with SCE to amend the SCE Victorville-Lugo ETC and the
IISCE Mead ETC to fully transition the path -specific rates set forth in
those ETCs to SCE's HVECAC Rate after a phase -in period that began on
August 1, 2009, during which the City's path -specific rates in those
ETCs will be gradually stepped -up over the next three years under
incrementally increasing fixed rates (the "Phase -In Rates") until the
1path-specific rates are equal to the HVECAC Rate as of
January 1, 2013; and
WHEREAS, FERC approved the SCE Settlement pursuant to an
order issued September 11, 2009 in FERC Docket Nos. ER08-1343-000,
ER08-1353-000, ER09-187-000, ER09-187-001, ER09-19-000, and ER09-446-
000 ("SCE Settlement Order"); and
WHEREAS, on behalf of the City, the Brattle Group, an
experienced utilities consulting firm, developed a tracking mechanism
for the City's TRR ("ETC Adjustment Clause"), which will allow the
City's TRR to be adjusted annually, effective January 1 of each year,
to reflect changes in the City's transmission expenses associated with
any changes implemented by SCE in the HVECAC Rate associated with the
SCE Victorville-Lugo ETC and the SCE Mead ETC; and
WHEREAS, on the basis of the Brattle Group's analysis and
evidence from City staff, which was considered during a public meeting
of the City Council held on July 13, 2009, the City, on July 15, 2009
("July 15 FERC Filing"), filed with FERC the proposed (i) revisions to
its TO Tariff proposing the City's stated TRRs for each of the years
12010 to 2012, which dollar amounts were also included in the SCE
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IlSettlement ("TO Tariff Revisions") and (ii) ETC Adjustment Clause
11tracking mechanism; and
WHEREAS, the July 15 FERC Filing acknowledged that, to the
11extent that the SCE Settlement was accepted, because the stated Phase
-
In Rates would be fixed, the ETC Adjustment Clause for the term of the
IlPhase-In Rates would be zero; and
WHEREAS, FERC approved the City's July 15 FERC Filing,
lincluding the TO Tariff Revisions, the City's proposed calculations of
the TRR for years 2010 to 2012, and the City's request to utilize an
IETC Adjustment Clause, in an order issued September 11, 2009 in FERC
(Docket No. EL09-64-000 ("TO Tariff Order"); and
WHEREAS, the City is required under the TO Tariff Order to
submit annual filings no later than November 1 of each year with FERC
reflecting annual modifications to the base TRR of the City; and
WHEREAS, because FERC approved the SCE Settlement, and the
City's TRR is fixed for calendar year 2010, the ETC Adjustment Clause
reflecting the amount required to true -up the TRR between the City and
SCE is zero; and
WHEREAS, a Notice of Public Hearing was published on or
before October 15, 2009, notifying all interested parties that a
hearing to consider evidence to establish the City's TRR and ETC
Adjustment Clause for 2010 was scheduled for October 26, 2009, at
approximately 9:00 a.m., subject to the hearing being continued or
adjourned to a stated time and place without further notice of public
hearing; and
WHEREAS, a Public Hearing was held on October 26, 2009, in
which the City Council took evidence from staff and those other
persons in attendance who wished to be heard on the City's TRR and ETC
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Adjustment Clause for 2010 under the City's TO Tariff; and
WHEREAS, the Light & Power Department has prepared a Staff
Report, with exhibits, dated October 21, 2009 ("Staff Report"), which
confirms the 2010 TRR, and that the 2010 ETC Adjustment Clause is
zero; and
WHEREAS, the Light & Power Department has recommended the
City adopt the TRR and ETC Adjustment Clause consistent with the July
15 FERC Filing and the TO Tariff Order, to be effective on January 1,
2010; and
WHEREAS, the City Council has heard and considered all
evidence, written and oral, presented in consideration of the
establishment of the City's TRR and ETC Adjustment Clause for 2010.
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 that all persons have had the opportunity
to be heard or to file written comments to the proposed adoption of
the City's TRR and ETC Adjustment Clause for 2010, and after due
consideration of any and all evidence submitted at the Public Hearing,
determines there are compelling reasons to justify the adoption of the
City's TRR and ETC Adjustment Clause for 2010 and amended Appendix I
to the TO Tariff, to be effective January 1, 2010.
SECTION 3: The City Council of the City of Vernon hereby
declares that:
(a) any determination made pursuant to this Resolution
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regarding the validity or reasonableness of any portion of any TRR or
TO Tariff shall apply only prospectively from the date of this
Resolution; and
(b) in no way shall this Resolution affect the City
Council's adoption or determination of any previous TRR or TO Tariff.
SECTION 4: The City Council of the City of Vernon hereby
approves, pursuant to the TO Tariff and to be effective on
January 1, 2010, the establishment of the City's new TRR and ETC
Adjustment Clause for 2010 and Appendix I to the TO Tariff, as
described in the Staff Report, a copy of which is attached hereto as
Exhibit A and incorporated by reference.
SECTION 5: The City Council of the City of Vernon hereby
authorizes outside counsel to submit the City's TRR and ETC Adjustment
Clause for 2010, the amended Appendix I to the TO Tariff, and this City
Council Resolution approving the TRR and ETC Adjustment Clause, to FERC
on behalf of the City of Vernon.
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the Book of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 26th day of October, 2009.
ATTEST:
MANUELA GIRO , -ty Clerk
Name: Hilario Gonzales
Title: Mayor /-emu � me -
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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. 10,091, was
duly passed, approved and adopted by the City Council of the City of
Vernon at a regular meeting of the City Council duly held on Monday,
October 26, 2009, and thereafter was duly signed by the Mayor or Mayor
Pro-Tem of the City of Vernon.
Executed this ZzAt day of October, 2009, at Vernon, California.
(SEAL)
c
MANUELA GIRON, City Clerk
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EXHIBIT A
TRR ETC ADJUSTMENT
CITY OF VERNON LIGHT AND POWER DEPARTMENT
STAFF REPORT REGARDING THE ESTABLISHMENT OF A NEW
TRANSMISSION REVENUE REQUIREMENT ASSOCIATED WITH VERNON'S
HIGH VOLTAGE ENTITLEMENTS
October 21, 2009
The City of Vernon ("Vernon" or "City") is a Scheduling Coordinator and a
Participating Transmission Owner ("PTO") in the California Independent System Operator
("ISO"). To participate in the ISO, PTOs are required to turn over administrative control of
their transmission facilities and entitlements to the ISO. In return, the ISO collects revenues
for each PTO pursuant to calculations that reflect the expenses and .capital costs incurred by
each PTO to provide transmission services. These calculations are known as Transmission
Revenue Requirements ("TRRs").
The relationship between PTOs and the ISO is governed by a Transmission Control
Agreement ("TCA"), which sets forth specific duties and obligations of all PTOs. The TCA
requires all PTOs to file a Transmission Owner Tariff ("TO Tariff') and TRR with the Federal
Energy Regulatory Commission ("FERC"). The TCA further requires all PTOs to file any
changes in their TRRs with the FERC.
At present, the City's high voltage transmission assets consist of three long-term
contracts (known as "existing transmission contracts" or "ETCs") which provide the City with
dedicated access to high voltage transmission facilities owned by other entities.
Specifically, the City has contractual entitlements to utilize transmission assets pursuant to
one long-term transmission contract with the Los Angeles Department of Water and Power
("LADWP"), and two long-term transmission contracts with Southern California Edison
("SCE"). The ETCs with SCE consist of one (the "SCE Victorville-Lugo ETC" described in
SCE's FERC Rate Schedule 360) providing 11 MW of transmission capacity along the path
between the Victorville-Lugo midpoint and the point of interconnection with the City's internal
transmission system (the "City Gate"), and one (the "SCE Mead ETC" described in SCE's
FERC Rate Schedule 207) providing 26 MW of transmission capacity along the path
between the Mead 230 substation and the City Gate.
The costs of these ETCs make up the majority of the costs recovered through the
City's TRR. Until recently, for each of the ETCs, the City paid the owner of the transmission
Staff Report
TRR 2010
Page 2 of 3
facilities a fixed rate which was specific to the transmission path provided under each ETC.
On August 1, 2008, SCE proposed to increase its TRR and associated rates in
FERC Docket No. ER08-1343-000. In a related filing submitted in FERC Docket No. ER08-
1353-000, SCE proposed to transition both of its ETCs with Vernon from their current, fixed
"path -specific" rates to a so-called "postage stamp" rate methodology which reflects the
blended rate which SCE charges the ISO pursuant to its own TRRs for the actual usage of
all of SCE's transmission facilities by customers of the ISO (the "HVECAC Rate"). The
HVECAC Rate that SCE proposed in its TO Tariff is derived from SCE's TRR and, therefore,
will change each time SCE amends its TRR.
On September 30, 2008, FERC accepted, subject to refund and hearing and
settlement procedures, SCE's proposed revisions to its TO Tariff to transition the negotiated
path -specific rates set forth in the SCE Victorville-Lugo ETC and the SCE Mead ETC to the
uniform HVECAC Rate, and thus the City's costs under those ETCs will vary proportionately
with any changes in SCE's TRR.
The City reached a settlement agreement (the "SCE Settlement") with SCE to amend
the SCE Victorville-Lugo ETC and the SCE Mead ETC to fully transition the path -specific
rates set forth in those ETCs to SCE's HVECAC Rate after a phase -in period that began on
August 1, 2009, during which the City's path -specific rates in those ETCs will be gradually
stepped -up over the next three years under incrementally increasing fixed rates (the "Phase -
In Rates") until the path -specific rates are equal to the HVECAC Rate as of January 1, 2013.
FERC approved the SCE Settlement pursuant to an order issued September 11, 2009, in
FERC Docket Nos. ER08-1343-000, ER08-1353-000, ER09-187-000, ER09-187-001,
ER09-19-000, and ER09-446-000 ("SCE Settlement Order").
On behalf of the City, the Brattle Group, an experienced utilities consulting firm,
developed a tracking mechanism for the City's TRR ("ETC Adjustment Clause"), which will
allow the City's TRR to be adjusted annually, effective January 1 of each year, to reflect
changes in the City's transmission expenses associated with any changes implemented by
SCE in the HVECAC Rate associated with the SCE Victorville-Lugo ETC and the SCE Mead
ETC.
Staff Report
TRR 2010
Page 3 of 3
On the basis of the Brattle Group's analysis and evidence from City staff, which was
considered during a public meeting of the City Council held on July 13, 2009, the City, on
July 15, 2009 ("July 15 FERC Filing"), filed with FERC the proposed (i) revisions to its TO
Tariff proposing the City's stated TRRs for each of the years 2010 to 2012, which dollar
amounts were also included in the SCE Settlement ("TO Tariff Revisions") and (ii) the ETC
Adjustment Clause tracking mechanism.
The July 15 FERC Filing acknowledged that, to the extent that the SCE Settlement
was accepted, because the stated Phase -In Rates would be fixed, the ETC Adjustment
Clause for the term of the Phase -In Rates would be zero.
FERC approved the City's July 15 FERC Filing, including the TO Tariff Revisions, the
City's proposed calculations of the TRR for years 2010 to 2012, and the City's request to
utilize an ETC Adjustment Clause, in an order issued September 11, 2009 in FERC Docket
No. EL09-64-000 ("TO Tariff Order"). Specifically, for 2010, FERC approved a TRR of
$1,218,960.
The City is required under the TO Tariff Order to submit annual filings no later than
November 1 of each year with FERC reflecting annual modifications to the base TRR of the
City.
Because FERC approved the SCE Settlement, and the City's TRR is fixed for
calendar year 2010, the ETC Adjustment Clause reflecting the amount required to true -up
the TRR between the City and SCE is zero.
RECOMMENDATIONS
1. Approve the establishment of the City's new TRR for 2010 and Appendix Ito the TO
Tariff.
2. Authorize outside counsel to submit the City's TRR and ETC Adjustment Clause for
2010, the amended Appendix I to the TO Tariff, and this City Council Resolution
I
pproving the TRR and ETC Adjustment Clause, to FERC on behalf of the City of
Vernon.
Appendix I to Vernon's Transmission Owner Tariff
(Redlined)
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $1,218,960 and is comprised of the following
components:
Base TRR costs not subject to ETC Adjustment Clause: $498,480
ETC Adjustment Clause:
Forecast SCE ETC Costs: $720,480
Balance of Difference between prior year
Forecast and Actual SCE ETC Costs: $0
Interest on Difference between prior year
Forecast and Actual SCE ETC Costs: $0
The ETC Adjustment Clause is: The projected SCE ETC Cost for the next calendar year, plus the
true -up (positive or negative) of the prior October through September SCE ETC Cost with interest
calculated pursuant to 18 C.F.R. § 35.19a. The ETC Adjustment Clause will be recalculated annually
and filed with the Commission with a proposed effective date of January i of each year.
The TRBAA is a positive $9 47,60SALLW for calendar year 2010.
Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is
1,288,684 MWh.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on: Geteber Invemher zo_ 2009 Resolution Effective: January 1, 2010
sdhtte_Tweltb Revised Sheet No. 22
Superseding Eleventh Revised Sheet No. 22
Appendix I to Vernon's Transmission Owner Tariff
(Clean)
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRHAA
The Vernon Base Transtission Revenue Requirement is $1,218,960 and is comprised of the following
components:
Base TRR costs not subject to ETC Adjustment Clause:. $498,480
ETC Adjustment Clause:
Forecast SCE ETC Costs: $720,480
Balance of Difference between prior year
Forecast and Actual SCE ETC Costs: $0
Interest on Difference between prior year
Forecast and Actual SCE ETC Costs: $0
The ETC Adjustment Clause is: The projected SCE ETC Cost for the next calendar year, plus the
true -up (positive or negative) of the prior October through September SCE ETC Cost with interest
calculated pursuant to 18 C.F.R. § 35.19a. The ETC Adjustment Clause will be recalculated annually
and filed with the Commission with a proposed effective date of January 1 of each year.
The TRBAA is a positive $411,764, for calendar year 2010.
Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is
1,288,684 MWh.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defied by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
]slued on: November 20, 2009 Resolution No. Effective: January 1, 2010
Substitute Twelth Revised Sheet No. 22
Superseding Eleventh Revised Sheet No. 22
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: October 27, 2009
TO: Donal O'Callaghan, Director of Light & Power
FROM,: Nelly Giron, City Clerk
RE: Resolution No. 10,091 - A Resolution of the City Council of
the City of Vernon Adopting a New Transmission Revenue
Requirement for 2Q10 in Accordance With Vernon's
Transmission Owner Tariff and Providing for Tariff Sheet
Changes to Implement the Transmission Contract Adjustment
for High Voltage Transmission Entitlements
Transmitted herewith is a copy of Resolution No. 10,091 referenced
above, which was approved by City Council on October 26, 2009.
Thank you.
NG : dj
c: Resolution No. 10,091
CERTIFICATE
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES)
I, Manuela Giron, City Clerk of the City of Vernon, County
of Los Angeles, State of California, hereby certify that the
attached is a full and complete copy of:
RESOLUTION NO. 10,091 - A Resolution of the City Council of
the City of Vernon Adopting a New Transmission Revenue
Requirement for 2010 in Accordance With Vernon's Transmission
Owner Tariff and Providing for Tariff Sheet Changes to
Implement the Transmission Contract Adjustment for High
Voltage Transmission Entitlements
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official Seal of the City of Vernon, County of Los Angeles,
State of California, on this A day of October 2009.
SEAL:
anuela Giro _..
City Clerk
L_ Since 1 ��
This space is for the County Clerk's Filing Stamp
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of the County aforementioned; I am over the age of
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the above -entitled matter. I am the principal clerk
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CASE NUMBER 884861;
that the notice, of which the annexed is a printed
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been published in each regular and entire issue of
said newspaper and not in any supplement thereof
on the following dates, to -wit:
OCTOBER 15,
all in the year 2009.
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at LOS ANGELES, California,
this 15'h day of OCTOBER, 2009.
CITY OF VERNON
Proof of Publication of
Notice of Public Hearing:
Monday, October 26, 2009 ...
Vernon's new Transmission Revenue Balancing
Account Adjustment
ignature
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hearing which you may
attend.
PLACE: Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
DATE & TIME: Monday, October 26, 2009, at 9:00 a.m., or as soon
thereafter as the matter can be heard.
PURPOSE: To consider evidence to establish Vernon's new
Transmission Revenue Balancing Account Adjustment for
its high voltage (over 200 kV) Transmission
entitlements (all located outside the City) pursuant to
Vernon's Transmission Owner Tariff; and to consider
evidence to establish Vernon's new Existing
Transmission Contract Adjustment for its high voltage
(over 200 kV) Transmission entitlements (all located
outside the City) pursuant to Vernon's Transmission
Owner Tariff.
Any interested person may attend and make an oral presentation to
the City Council at the time of the hearing, or may present written
comments prior to the hearing.
If you challenge the approval of the establishment of Vernon's
new Transmission Revenue Balancing Account Adjustment or any provision
thereof in court, or if you challenge the approval of the
establishment of Vernon's new Existing Transmission Contract
Adjustment or any provision thereof in court, you may be limited to
raising only those issues you or someone else raised at the hearing
described in this notice or in written correspondence delivered to the
City of Vernon at, or prior to, the meeting.
Information may be obtained by contacting the office of the City
Clerk at the above address.
The hearing may be continued, adjourned or cancelled and
rescheduled to a stated time and place without further notice.
Dated: October 13, 2009 s/
Manuela Giron, City Clerk
last Cq /6jW
��•1 E 4 Fl�h'I�O� -
,,1 APPROVED OCT 2 6 '09 G[rY COUNCIL
RECEIVED j a.
nC��vkcY, iivy`1 .
O C T 2 2 2009
K'SOFFB STAFF REREPORTCIiYCIER
OFFICE
LIGHT & POWER
DATE: October 22, 2009 �
TO: Honorable Mayor and City Council
FROM: Donal O'Callaghan, Director of Light & Power
RE: Transmission Revenue Requirement for 2010
Purpose:
Detailed Staff Report is enclosed.
Recommendation:
1. Approve the establishment of the City's new TRR for 2010 and Appendix Ito the TO
Tariff.
2. Authorize outside counsel to submit the City's TRR and ETC Adjustment Clause for
2010, the amended Appendix I to the TO Tariff, and this City Council Resolution
approving the TRR and ETC Adjustment Clause, to FERC on behalf of the City of
Vernon.
Staff would like this matter to be addressed on the October 26th, 2009 City Council meeting.
Fiscal Impact:
There is no known fiscal impact.
DO:AA:eo
Attachments
I� OCT 2 2 Z009
og
r
INTEROFFICE MEMORANDUM
'Light & Power Department
DATE: October 22, 2009
TO: Donal O'Callaghan
Director of Light & Power
FROM: Abraham Alemu A-, A -
Electric Resources Planning & Development Manager
SUBJECT: Transmission Revenue Requirement for 2010
Attached for your review and approval is the complete package for the Council's
consideration on October 26th, 2009 of the Transmission Revenue Requirement for
calendar year 2010. Specifically, attached are the following documents:
• City of Vernon Resolution
• Staff Report on the Transmission Revenue Requirement for 2010
Appendix I to the TO Tariff (Redlined)
• Appendix I to the TO Tariff (Clean Version)
c: Abraham Alemu
Document Control
OCT 2 2 2009 I U
By... l'-.3-3
CITY OF VERNON LIGHT AND POWER DEPARTMENT
STAFF REPORT REGARDING THE ESTABLISHMENT OF A NEW
TRANSMISSION REVENUE REQUIREMENT ASSOCIATED WITH VERNON'S
HIGH VOLTAGE ENTITLEMENTS
October 21, 2009
The City of Vernon ("Vernon" or "City") is a Scheduling Coordinator and a
Participating Transmission Owner ("PTO") in the California Independent System Operator
("ISO"). To participate in the ISO, PTOs are required to turn over administrative control of
their transmission facilities and entitlements to the ISO. In return, the ISO collects revenues
for each PTO pursuant to calculations that reflect the expenses and capital costs incurred by
each PTO to provide transmission services. These calculations are known as Transmission
Revenue Requirements ("TRRs").
The relationship between PTOs and the ISO is governed by a Transmission Control
Agreement ("TCA"), which sets forth specific duties and obligations of all PTOs. The TCA
requires all PTOs to file a Transmission Owner Tariff ("TO Tariff') and TRR with the Federal
Energy Regulatory Commission ("FERC"). The TCA further requires all PTOs to file any
changes in their TRRs with the FERC.
At present, the City's high voltage transmission assets consist of three long-term
contracts (known as "existing transmission contracts" or "ETCs") which provide the City with
dedicated access to high voltage transmission facilities owned by other entities.
Specifically, the City has contractual entitlements to utilize transmission assets pursuant to
one long-term transmission contract with the Los Angeles Department of Water and Power
("LADWP"), and two long-term transmission contracts with Southern California Edison
("SCE"). The ETCs with SCE consist of one (the "SCE Victorville-Lugo ETC" described in
SCE's FERC Rate Schedule 360) providing 11 MW of transmission capacity along the path
between the Victorville-Lugo midpoint and the point of interconnection with the City's internal
transmission system (the "City Gate"), and one (the "SCE Mead ETC" described in SCE's
FERC Rate Schedule 207) providing 26 MW of transmission capacity along the path
between the Mead 230 substation and the City Gate.
The costs of these ETCs make up the majority of the costs recovered through the
City's TRR. Until recently, for each of the ETCs, the City paid the owner of the transmission
- - - -- -- - - - Staff Report
TRR 2010
Page 2 of 3
facilities a fixed rate which was specific to the transmission path provided under each ETC.
On August 1, 2008, SCE proposed to increase its TRR and associated rates in
FERC Docket No. ER08-1343-000. In a related filing submitted in FERC Docket No. ER08-
1353-000, SCE proposed to transition both of its ETCs with Vernon from their current, fixed
"path -specific" rates to a so-called "postage stamp" rate methodology which reflects the
blended rate which SCE charges the ISO pursuant to its own TRRs for the actual usage of
all of SCE's transmission facilities by customers of the ISO (the "HVECAC Rate"). The
HVECAC Rate that SCE proposed in its TO Tariff is derived from SCE's TRR and, therefore,
will change each time SCE amends its TRR.
On September 30, 2008, FERC accepted, subject to refund and hearing and
settlement procedures, SCE's proposed revisions to its TO Tariff to transition the negotiated
path -specific rates set forth in the SCE Victorville-Lugo ETC and the SCE Mead ETC to the
uniform HVECAC Rate, and thus the City's costs under those ETCs will vary proportionately
with any changes in SCE's TRR.
The City reached a settlement agreement (the "SCE Settlement") with SCE to amend
the SCE Victorville-Lugo ETC and the SCE Mead ETC to fully transition the path -specific
rates set forth in those ETCs to SCE's HVECAC Rate after a phase -in period that began on
August 1, 2009, during which the City's path -specific rates in those ETCs will be gradually
stepped -up over the next three years under incrementally increasing fixed rates (the "Phase -
In Rates") until the path -specific rates are equal to the HVECAC Rate as of January 1, 2013.
FERC approved the SCE Settlement pursuant to an order issued September 11, 2009, in
FERC Docket Nos. ER08-1343-000, ER08-1353-000, ER09-187-000, ER09-187-001,
ER09-19-000, and ER09-446-000 ("SCE Settlement Order").
On behalf of the City, the Brattle Group, an experienced utilities consulting firm,
developed a tracking mechanism for the City's TRR ("ETC Adjustment Clause"), which will
allow the City's TRR to be adjusted annually, effective January 1 of each year, to reflect
changes in the City's transmission expenses associated with any changes implemented by
SCE in the HVECAC Rate associated with the SCE Victorville-Lugo ETC and the SCE Mead
ETC.
- - --- - - Staff Report - - - ---
TRR 2010
Page 3 of 3
On the basis of the Brattle Group's analysis and evidence from City staff, which was
considered during a public meeting of the City Council held on July 13, 2009, the City, on
July 15, 2009 ("July 15 FERC Filing"), filed with FERC the proposed (i) revisions to its TO
Tariff proposing the City's stated TRRs for each of the years 2010 to 2012, which dollar
amounts were also included in the SCE Settlement ("TO Tariff Revisions") and (ii) the ETC
Adjustment Clause tracking mechanism.
The July 15 FERC Filing acknowledged that, to the extent that the SCE Settlement
was accepted, because the stated Phase -In Rates would be fixed, the ETC Adjustment
Clause for the term of the Phase -in Rates would be zero.
FERC approved the City's July 15 FERC Filing, including the TO Tariff Revisions, the
City's proposed calculations of the TRR for years 2010 to 2012, and the City's request to
utilize an ETC Adjustment Clause, in an order issued September 11, 2009 in FERC Docket
No. EL09-64-000 ("TO Tariff Order"). Specifically, for 2010, FERC approved a TRR of
$1,218,960.
The City is required under the TO Tariff Order to submit annual filings no later than
November 1 of each year with FERC reflecting annual modifications to the base TRR of the
City.
Because FERC approved the SCE Settlement, and the City's TRR is fixed for
calendar year 2010, the ETC Adjustment Clause reflecting the amount required to true -up
the TRR between the City and SCE is zero.
RECOMMENDATIONS
1. Approve the establishment of the City's new TRR for 2010 and Appendix Ito the TO
Tariff.
2. Authorize outside counsel to submit the City's TRR and ETC Adjustment Clause for
2010, the amended Appendix I to the TO Tariff, and this City Council Resolution
approving the TRR and ETC Adjustment Clause, to FERC on behalf of the City of
Vernon.
TRR.ETC ADJUSTMENT
EXHIBIT A
Appendix I to Vernon's Transmission Owner Tariff
(Redlined)
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $9443481 218 2zQ and is comprised of the following
components
Base TRR costs not subject to ETC Adjustment Clause: $497,985498 4
ETC Adjustment Clause:
Forecast SCE ETC Costs: $446,443 Z 480
Balance of Difference between prior year
Forecast and Actual SCE ETC Costs: $0
Interest on Difference between prior year
Forecast and Actual SCE ETC Costs: $0
The ETC Adjustment Clause is: The projected SCE ETC Cost for the next calendar year, plus the
true -up (positive or negative) of the prior October through September SCE ETC Cost with interest
calculated pursuant to 18 C.F.R. § 35.19a. The ETC Adjustment Clause will be recalculated annually
and filed with the Commission with a proposed effective date of January 1 of each year.
The TRBAA is a positive $296,85847.605 for calendar year 208 .2010.
Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is
2�;,-50-21. g MWh
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on: T 45, 13 October 30. 2009 Resolution No. Effective: Augus 1, 2010
91-eveMliT -elth Revised Sheet No. 22
Superseding 4-ent4FJevkuth Revised Sheet No. 22
Appendix I to Vernon's Transmission Owner Tariff
(Clean)
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $1,218,960 and is comprised of the following
components:
Base TRR costs not subject to ETC Adjustment Clause: $498,480
ETC Adjustment Clause:
Forecast SCE ETC Costs: $720,480
Balance of Difference between prior year
Forecast and Actual SCE ETC Costs: $0
Interest on Difference between prior year
Forecast and Actual SCE ETC Costs: $0
The ETC Adjustment Clause is: The projected SCE ETC Cost for the next calendar year, plus the
true -up (positive or negative) of the prior October through September SCE ETC Cost with interest
calculated pursuant to 18 C.F.R. § 35.19a. The ETC Adjustment Clause will be recalculated annually
and filed with the Commission with a proposed effective date of January 1 of each year.
The TRBAA is a positive $847,605 for calendar year 2010.
Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is
1,288,684 MWh.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on: October 30, 2009 Resolution No. Effective: January 1, 2010
Twelth Revised Sheet No. 22
Superseding Eleventh Revised Sheet No. 22
RESOLUTION NO. 2010-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE REVISION OF
EXHIBITS 1 AND 2 TO THE CITY OF VERNON LIGHT &
POWER STAFF REPORT REGARDING ESTABLISHMENT OF A NEW
TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT
(TRBAA) FOR 2010 AND THE REVISION OF TRANSMISSION
OWNER TARIFF SHEET APPENDIX I, "TRANSMISSION
REVENUE REQUIREMENT AND TRBAA," SUBMITTED TO THE
FEDERAL ENERGY REGULATORY COMMISSION (FERC) IN
SUPPORT OF VERNON'S TRANSMISSION REVENUE
REQUIREMENT FOR 2010 AND VERNON'S TRANSMISSION
REVENUE BALANCING ACCOUNT ADJUSTMENT FOR 2010 AND
APPROVING THE RELATED REVISED FERC FILING
WHEREAS, the City of Vernon (the "City") is a chartered
municipal corporation of the State of California that owns and
operates a system for the generation, purchase, transmission,
distribution and sale of electric capacity and energy; and
WHEREAS, the City is a Participating Transmission Owner
("PTO") with the California Independent System Operator ("ISO"), and
the Federal Energy Regulatory Commission ("FERC") has approved its
existing Transmission Owner Tariff ("TO Tariff"); and
WHEREAS, the ISO, through charges assessed ISO customers
under the ISO Open Access Transmission Tariff, reimburses the City
according to the City's current Transmission Revenue Requirement
("TRR") in return for the City turning over to the ISO the operation
and control.of the City's transmission entitlements; and
WHEREAS, the TO Tariff provides for periodic recalculation
of the Transmission Revenue Balancing Account Adjustment ("TRBAA"),
which is a ratemaking mechanism designed to ensure that all
Transmission Revenue Credits flow through to ISO customers; and
WHEREAS, pursuant to Resolution No. 10,091, approved and
adopted on October 26, 2009, the City Council approved the City's
Transmission Revenue Requirement for 2010 ("TRR"), the Existing
Transmission Contract Adjustment Clause for 2010 ("ETC Adjustment
Clause") and amended Appendix I "Transmission Revenue Requirement and
TRBAA" to the City's TO Tariff ("Appendix I"); and
WHEREAS, pursuant to Resolution No. 10,092, approved and
adopted on October 26, 2009, the City Council approved the City's 2010
TRBAA and certain related amendments to Appendix I necessary to
implement the 2010 TRBAA, as described in the Staff Report attached
and incorporated into Resolution No. 10,092 as Exhibit A (the "Staff
Report"); and
WHEREAS, the TRR and TRBAA for calendar year 2010 was filed
with FERC on October 30, 2009; and
WHEREAS, the Light & Power Department discovered an
inadvertent error in one component of the calculation of the TRBAA
that appeared in Appendix I as approved by both Resolution No. 10,091
and Resolution No. 10,092, and in Exhibits 1 and 2 to the Staff
Report, which affected both the TRBAA FERC filing and the TRR FERC
filing; and
WHEREAS, the miscalculation was the number $23,904.25 that
appeared on line 10 of Exhibit 2 to the Staff Report as a positive
number rather than a negative one, the correction of which resulted in
a downward reduction of the City's TRBAA for calendar year 2010 from a
positive $847,605 to a positive $411,764; and
WHEREAS, to correct the miscalculation, Exhibits 1 and 2 of
the Staff Report as well as Appendix I (clean and revised) must be
revised and the Light & Power Department recommends that the those
revisions be made; and
- 2 -
WHEREAS, outside counsel has submitted to the FERC revised
TRR and TRBAA filing on November 20, 2009, a copy of said revised
filing is attached hereto as Exhibit A and incorporated herein by
reference ("Revised FERC Filing"); and
WHEREAS, by order dated January 8, 2010, the FERC accepted
the City's Revised FERC Filing for calendar year 2010, with the City's
TRBAA for 2010 reduced from $847,605 to $411,764; and
WHEREAS, the Light & Power Department recommends that the
Revised FERC Filing, including Appendix I implementing the new TRBAA,
be approved and authorized.
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
finds that the Revised FERC Filing, including all attachments, were
appropriate and necessary for the proper filing of the City's 2010 TRR
and TRBAA with the FERC, and approves and ratifies the Revised FERC
Filing and all attachments thereto.
SECTION 3: The City Council of the City of Vernon hereby
approves and authorizes (i) the replacement of the original Appendix I
attached to Resolution No. 10,091, with the revised Appendix I
attached hereto, and (ii) the replacement of the original Exhibits 1
and 2 to the Staff Report and the original Appendix I attached to
Resolution No. 10,092, with the revised Exhibits 1 and 2 to the Staff
Report and revised Appendix I attached hereto.
- 3 -
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to take whatever
action is deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
filings herein approved or authorized, including, without limitation,
authorizing outside counsel to submit to the FERC on behalf of the
City any additional documents necessary to complete the filing of the
City's 2010 TRR and TRBAA and/or the revised Appendix I.
SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 25th day of January, 2010.
ATTEST:
ANUELA GIRON, City Clerk
Name: Hilario Gonzales
Title: Mayor / :`Ma�
- 4 -
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. 2010-13,
was duly passed, approved and adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on Monday,
January 25, 2010, and thereafter was duly signed by the Mayor or Mayor
Pro-Tem of the City of Vernon.
Executed this 24 day of January, 2010, at Vernon, California.
(SEAL)
MANUELA GIRO ,- C'ty Clerk
- 5 -
EXHIBIT A
ORIGINAL
LATHAM&WATKINSLLP
555 Eleventh Street, N.W., Suite 1000
Washington, D.C. 20004-1304
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Orange County
November 20, 2009
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VIA HAND DELIVERY
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Honorable Kimberly D. Bose
London
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Secretary
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Federal Energy Regulatory Commission
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Washington, D.C.
888 First Street NE
Moscow
Washington, DC 20426
Re: City of Vernon, California; Docket No. ELIO-10-ON DO I
Correction to Filing Regarding Transmission Revenue Balancing Account Adjustment
Dear Ms. Bose:
On October 30, 2009, the City of Vernon, California ("Vernon") filed with the
Federal Energy Regulatory Commission ("Commission") (i) the annual revision to its
Transmission Revenue Balancing Account Adjustment ("TRBAA") and (ii) the Transmission
Revenue Requirement ("TRR") to be effective in calendar year 2010 (the "October 30 Filing").'
It has come to Vernon's attention that there was an inadvertent error in one component of the
calculation of the TRBAA portion of this filing. The effect of correcting this error is a
downward reduction in Vernon's TRBAA for 2010 from $847,605 to $411,764.
This submittal corrects the error and provides substitute Appendix I sheets to
Vernon's Transmission Owner Tariff ("TO Tariff) reflecting the revised TRBAA number.
Vernon respectfully reauests expedited treatment of this submittal so that an order may
issue prior to January 1. 2010 accepting the corrected TRBAA, effective January 1. 2010.2
The October 30 Filing was made consistent with the Commission's directive in Ordering
Paragraph (C) of the Commission's September 11, 2009 Order in Docket No. EL09-64-000, See
City of Vernon, Cal., 128 FERC 161,235 (2009).
As noted in the October 30 Filing, while Vernon pledges its continued cooperation in matters
relating to its status as a PTO, Vernon respectfully states that it does not by this filing consent to
any Commission jurisdiction or authority other than that provided in the Commission's existing
orders in Docket Nos. EL00-105 and EL08-54. See, e.g., City of Vernon, Cal., 124 FERC
¶ 6I,005 at P 14 (noting that the Commission "lacks jurisdiction over Vernon's transmission rates
under FPA Section 205," but may nonetheless "review Vernon's TRR because it is a component
of the jurisdictional CAISO [Transmission Access Charge]").
November 20, 2009
Pape 2
LATHAMaWATKINSLLP
I. CORRECTION TO TRBAA CALCULATION
As explained in the October 30 Filing, under the CAISO Tariff, changes in the
TRBAAs of Participating Transmission Owners are intended to become effective as of January 1
of each year.3 Vernon's revised TRBAA is based upon the recorded balance in Vernon's
TRBAA as of September 30, 2009 and a forecast of the Transmission Revenue Credits expected
to be received in 2010.4
Attachment 4 to the October 30 Filing included the exhibits to the TRBAA Staff
Report, which provided the supporting workpaper data used to calculate the TRBAA. Exhibit 2
to the TRBAA Staff Report is a workpaper titled "City of Vernon Transmission Revenue
Balancing Account for Calendar Year 2010 TRBAA." The error that is the subject of this filing
appeared in the entries for line 10, "Authorized Revenue / TRBAA Credits," for months January
2009 through September 2009. In sum, the number $23,904.25 that appears in line 10 for each
of those months should have appeared as a negative number, rather than the positive number
reflected in the workpaper submitted on October 30.
This error is corrected in revised Exhibit 2, which is provided in this filing as
Attachment 4. The effect of correcting line 10 to Exhibit 2 is to change the ending balance of
Vernon's TRBAA account to $415,048.21 (see line 29 of Exhibit 2), instead of $850,889.13, as
originally reflected on Exhibit 2 in the October 30 Filing.
When the TRBAA balance is adjusted for forecasted transmission revenue credits,
the net TRBAA for 2010 is $411,764. This corrected amount is reflected on Exhibit 1, attached
hereto as Attachment 3.
II. REQUEST FOR EXPEDITED TREATMENT AND JANUARY 1, 2010
EFFECTIVE DATE
As explained in the October 30 Filing, annual adjustments to the TRBAA are to
be filed to become effective on January 1. Vernon respectfully requests expedited treatment of
this submittal so that an order may issue confirming acceptance of the revised TRBAA prior to
January 1, 2010. Vernon further requests any waivers of the Commission's regulations needed
in order to maintain January 1, 2010 as the effective date of revised Appendix 1. Further, if and
to the extent the Commission determines that a notice of this filing and additional comment
period is required, Vernon requests that the Commission provide for a shortened comment period
to accommodate issuing an order prior to January 1.
¶ 61,005 at P 14 (noting that the Commission "lacks jurisdiction over Vernon's transmission rates
under FPA Section 205," but may nonetheless "review Vernon's TRR because it is a component
of the jurisdictional CAISO [Transmission Access Charge]"). ,
CAISO Tariff, Appendix F, Schedule 3, § 8.1.
CAISO Tariff, Appendix F, Schedule 3, § 8.1.
November 20, 2009
Page 7
LATHAMaWATKINS«P
Vernon became aware of the error in the October 30 Filing yesterday and has
promptly sought to correct the error. The effect of this correction is a downward adjustment in
Vernon's TRBAA. Accordingly, no party is adversely affected by this adjustment or by
Vernon's request for expedited treatment of this filing, and Vernon submits that granting its
request for expedited treatment and any waivers is appropriate under these circumstances.
M. ATTACHMENTS
This Filing includes the following Attachments:
• Appendix I to the TO Tariff (Clean), attached hereto as Attachment 1;
• Appendix I to the TO Tariff (Redline), attached hereto as Attachment 2;
• Corrected Exhibit 1 to the TRBAA Staff Report, attached hereto as Attachment 3;
• Corrected Exhibit 2 to the TRBAA Staff Report, attached hereto as Attachment 4.
IV. SERVICE
Copies of this filing will be served by mail upon the persons listed in Appendix F
of the CAISO Transmission Control Agreements These persons are representatives of CAISO
and the other CAISO PTOs. In addition, copies will be served on all parties who are part of the
Commission's official service list in this proceeding. A certificate of service is attached hereto.
See http://www.caiso.com/docs/09003a6080/25/a3/09003a608025a3bd.pdf.
November 20, 2008
Page 4
LATHAM&WATKINS«P
V. CONCLUSION
For the foregoing reasons, Vernon respectfully requests that the Commission
accept for filing, to become effective January 1, 2010: (i) Vernon's revised TRBAA, and (ii)
Vernon's revised TRR for 2010, including the granting of any necessary waivers.
e tfull submitted,
a,
Michael J. ergen
Jared W. Johnson
G. Scott Binnings
Counsel for City of Vernon
Enclosures
ATTACHMENT 1
Appendix I to the TO Tariff (Clean)
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $1,218,960 and is comprised of the following
components:
Base TRR costs not subject to ETC Adjustment Clause: $498,480
ETC Adjustment Clause:
Forecast SCE ETC Costs: $720,480
Balance of Difference between prior year
Forecast and Actual SCE ETC Costs: $0
Interest on Difference between prior year
Forecast and Actual SCE ETC Costs: $0
The ETC Adjustment Clause is: The projected SCE ETC Cost for the next calendar year, plus the
true -up (positive or negative) of the prior October through September SCE ETC Cost with interest
calculated pursuant to 18 C.F.R. § 35.19a. The ETC Adjustment Clause will be recalculated annually
and filed with the Commission with a proposed effective date of January 1 of each year.
The TRBAA is a positive $411,764.for calendar year 2010.
Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is
1,288,684 MWh.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on: November 20, 2009 Resolution No. Effective: January 1, 2010
Substitute Twelth Revised Sheet No. 22
Superseding Eleventh Revised Sheet No. 22
ATTACHMENT 2
Appendix I to the T4 Tariff (Redline)
Transmission Owner Tariff (cont.)
APPENDIX I
Transmission Revenue Requirement and TRBAA
The Vernon Base Transmission Revenue Requirement is $1,218,960 and is comprised of the following
components:
Base TRR costs not subject to ETC Adjustment Clause: $498,480
ETC Adjustment Clause:
Forecast SCE ETC Costs: $720,480
Balance of Difference between prior year
Forecast and Actual SCE ETC Costs: $0
Interest on Difference between prior year
Forecast and Actual SCE ETC Costs: $0
The ETC Adjustment Clause is: The projected SCE ETC Cost for the next calendar year, plus the
true -up (positive or negative) of the prior October through September SCE ETC Cost with interest
calculated pursuant to 18 C.F.R. § 35.19a. The ETC Adjustment Clause will be recalculated annually
and filed with the Commission with a proposed effective date of January I of each year.
The TRBAA is a positive $847,60541 V, for calendar year 2010.
Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is
1,288,684 MWh.
All of Vernon's transmission facilities and Entitlements placed under the ISO's Operational Control are High
Voltage Facilities as defined by the ISO Tariff.
The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City
Council, and provided to the ISO.
Authorized by City of Vernon
Ordinance No. 940
Issued on: Oeteber- 30,Nnvep1her Ell. 2009 Resolution Effective: January 1, 2010
Su_hstitaite elth Revised Sheet No. 22
Superseding Eleventh Revised Sheet No. 22
ATTACHMENT 3
Corrected Exhibit 1 to the TRBAA Staff Report
Staff Report
TRBAA 2010
Exhibit 1
A
B
C
D E
F
G
H
1
CITY OF VERNON
TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT (TRBAA)
CALENDAR YEAR 2010
DESCRIPTION TOTAL
Balance in TRBA on September 30, 2009 $415,048
including interest
Forecast Transmission Revenue Credits ($3,285)
TRBAA $411,764
Source:
Line 9 Exhibit 2, Column N, Line No.53.
Line 12 Exhibit 3, Column E, Line No.23.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
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18
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20
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32
33
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41
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43
TRBAA10Revised-11192009 (2).xls
ATTACHMENT 4
Corrected Exhibit 2 to the TRBAA Staff Report
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CERTIFICATE OF SERVICE
I hereby certify that I have served the foregoing document by mail upon each
person designated on Appendix F to the California Independent System Operator Corporation
Transmission Control Agreement. In addition, a copy has been served on all parties listed on the
official service list in this proceeding.
Dated at Washington, D.C. this 20th day of November 2009.
.t 'Amr&�
G. Scott Bm'nmgs
Latham & Watkins LLP
555 Eleventh Street, NW, Suite 1000
Washington, DC 20004
Tel: (202) 637-2200
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: January 26, 2010
TO: Donal O'Callaghan, Director of Light & Power
FROM: Nelly Giron, City Clerk
RE: Resolution No. 2010-13 - A Resolution of the City Council of
the City of Vernon Approving and Authorizing the Revision of
Exhibits 1 and 2 to the City of Vernon Light & Power Staff
Report Regarding Establishment of a New Transmission Revenue
Balancing Account Adjustment (TRBAA) for 2010 and the
Revision of Transmission Owner Tariff Sheet Appendix I,
"Transmission Revenue Requirement and TRBAA,'' Submitted to
the Federal Energy Regulatory Commission (FERC) in Support
of Vernon's Transmission Revenue Requirement for 2010 and
Vernon's Transmission Revenue Balancing Account Adjustment
for 2010 and Approving the Related Revised FERC Filing
Transmitted herewith is a copy of Resolution No. 2010-13 referenced
above, which was approved by City Council on January 25, 2010.
Thank you.
NG:dj
c: Resolution No. 2010-13, 10,091, 10,092