Resolution No. 2010-013RESOLUTION 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
Tel: +1.202.637.2200 Fax: +1.202.537.2201
SECRZ7FlEEp
Y
www.lw.com
/�,TIDE
FIRM/AFFILIATE OFFICES
�+Vt�II ilSI Qj!
Abu Dhabi Munich
Baroel— New I
�
t fl7 NOV z Q t -� A
t� I' 3 '1
Brussels
New York
Chicago
Orange County
November 20, 2009
��F 0ER1,LEl.,E��uY
Doha
Pads
Ap0,, Y Coll -1 !1C
��l�;'j
Dubai
Frankfurt
Rome
San Diego
VIA HAND DELIVERY
Hamburg
San Francisco
Hong Kong
Shanghai
Honorable Kimberly D. Bose
London
Silicon valley
Secretary
Los Angeles
Singapore
Federal Energy Regulatory Commission
Madrid
Tokyo
Milan
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
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
TRBAA10Revised-11192009 (2).xls
ATTACHMENT 4
Corrected Exhibit 2 to the TRBAA Staff Report
}a
N SO 8
S $
a'N �
S
S S
8 O N C
G
66
S S
O
m p p
Op . Op 0
Y
< m �
N
N N
yNy
O
w w
p p
W -
w
w w
Ztt
p
pp
N
v�
a
w
w
w
8 8
8 8<
8
mom^
8 8
8 8
8 898
8
m
m
n
o N o
6¢
is
m o S v
S S
m v�i m
i J
U
00 0 0 00
i J
O
U;
o
Ci
w c
yCi
w
maim
N
K K
OOLL
Z
Q
w w
w w
W w m w
w
K K
00
Z G Z
aJ
c
S S N
� t VV 0
N
m a
�V
00
Ow
00S a O
q
C5
Y
m
ry p
w
paid
8 8
8 8 r 8
8
w 6 ai w
6
Z§
rC6�
w
g
O
U
Q
dc`i
611m
n
8
omo
_ Z Za
w � a
N
w
p p
w w ri w
w
p
-
Z
ce
W m N
7 W
0Z
S
R 8 8 8
8
mq2
8
8
8N8
O
Y j 'd
p w p
p
v
O
p
w w
w w V N
H
iUce o
�Lo
`o
Z b
O U
witw
p
mw
-
c
o
_
LL
w
v
14
p
U
O
uc% 8 8 8
8 �5
8N�
n
8 8
8 8
8 88
IQ
8
O
Z,
O
N ON
Omi
cj
m V
m V
_
p w
w w
W w V
W O
Ow
N
C
c
'$
R
'"e
w
w w
w
`o
O
N
8
8 8° 8
8
-QED
w
, ��
�R j
8m
$
$ ��6
E
W
d7
❑
C
m
E
m
CR 8 8 8
8
8
8 8
8 8
8 898
8
m
m
m
w . p
w .�
�
m
m
_
W w
ci p
w w m W
w
N
VI
Z
s
.0
u
8 8 8
�N
m<'
8
o oaeo
a
d
E
_
m-
Q
Op Op p
w a�D
m
N YI
w w
w p
w p m p
w
m
o
w
�w
w
w
p
5
c
N
m
?
O W
N
tuNi
m
d
d �
O
Z
O
O
U Z
J
¢ j U'
W
oo
J x
Z
Z W
Na Nz rtF�lF
<
ns
m
T
a
N
&ww
W
3o
A
m
¢
¢
Z
2
W
Z
W
08. u1F
�.ws 0
R
a
a-
o
m ¢O
W W
O (W9
GO
N
G
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
APPROVED rJA� '10 CHI COUNCIL
y
N
E�
"'-N 1 4 2010 STAFF REPORT
CITY CLERK'S OFFICE LIGHT & POWER
DATE: January 13, 2010
TO: Honorable City Mayor and Ci Coun it
Y
FROM: Donal O'Callaghan, Director of Light & Power
RE: Revised Transmission Revenue Balancing Account Adjustment for
Calendar Year 2010
Purpose:
On October 26, 2009, the City of Vernon City Council approved Resolution No. 10,092
establishing Transmission Revenue Requirement (TRR) and Transmission Revenue
Balancing Account (TRBAA) for calendar year 2010 that was filed with the Federal
Energy Regulatory Commission (Commission) on October 30, 2009.
It came to Vernon's attention that there was inadvertent error in one component of the
calculation of the TRBAA. The error appeared in Exhibit 2 to the TRBAA entries for line
10, "Authorized Revenue / TRBAA Credits," for the. months January 2009 through
September 2009. The number $23,904.25 that appears in line 10 for each of those
months should have appeared as a negative number, rather than a positive number.
On November 20, 2009 Vernon submitted to the Commission correction to the filing
regarding the TRBAA. A copy of the submittal is attached for City Council approval. The
effect of correcting this error was a downward reduction in Vernon's TRBAA for
calendar year 2010 from $847,605 to $411,764. By order dated January 8, 2010, the
Commission accepted Vernon's revised TRBAA filing for calendar year 2010 to be a
positive $411, 764.
Recommendation:
Staff recommends the City Council approve the revised Transmission Revenue
Balancing Account Adjustment filing for Calendar Year 2010 at its meeting on
January 25, 2010.
Fiscal Impact:
There is no known fiscal impact.
RECEIVED
JAN 1 3 2010
EY,J?!,!- I1:yy
INTEROFFICE MEMORANDUM
r4@��$tY 11i0�5�'
Light & Power Department
Date:
To
From
SUBJECT:
January 13, 2010
Donal O'Callaghan
Director of Light and Power
Abraham Alemu A-.4--
Electric Resources Planning & Development Manager
Revised Transmission Revenue Balancing Account Adjustment for Calendar Year
2010
On October 26, 2009, the City of Vernon City Council approved Resolution No. 10,092
establishing Transmission Revenue Requirement (TRR) and Transmission Revenue Balancing
Account (TRBAA) for calendar year 2010 that was filed with the Federal Energy Regulatory
Commission (Commission) on October 30, 2009.
It came to Vernon's attention that there was inadvertent error in one component of the
calculation of the TRBAA. The error appeared in Exhibit 2 to the TRBAA entries for line 10,
"Authorized Revenue / TRBAA Credits," for the months January 2009 through September 2009.
The number $23,904.25 that appears in line 10 for each of those months should have appeared as
a negative number, rather than a positive number. On November 20, 2009 Vernon submitted to
the Commission correction to the filing regarding the TRBAA. A copy of the submittal is
attached for City Council approval. The effect of correcting this error was a downward reduction
in Vernon's TRBAA for calendar year 2010 from $847,605 to $411,764. By order dated
January 8, 2010, the Commission accepted Vernon's revised TRBAA filing for calendar year
2010 to be a positive $411, 764.
Staff recommends the City Council approve the revised Transmission Revenue Balancing
Account Adjustment filing for Calendar Year 2010 at its meeting on January 25, 2010.
DO:AA:eo
Attachment
c: Abraham Alemu
Document Control
� C:
JAN 1 3 2010
By:t I"+c>o
LATHAM&WATKINSLLP
November 20, 2009
VIA HAND DELIVERY
FILED
15FCr, MI.,ly OF Mr:
'V I
Honorable Kimberly D. Bose
Secretary
Federal Energy Regulatory Commission
888 First Street NE
Washington, DC 20426
555 Eleventh Street, N.W., Suite 1000\�
Washington, D.C..20004-1304
Tel: +1.202,637 2200 Fax: +1.202.6372201
www.lw com
NO 3 0 Zn
U
FIRM / AFFILIATE OFFICES
Abu Dhabi Munich
LIGHT & I'10W R T
Barcelona New Jersey
Brussels New York
Chicago
Doha
Dubai
Frankfurt
Hamburg
Hong Kong
London
Los Angeles
Madrid
Milan
Moscow
Orange County
Paris
Rome
San Diego
San Francisco
Shanghai
Silicon Valley
Singapore
Tokyo
Washington, D.C.
Re: City of Vernon, California; Docket No. EL10-10-000
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 requests expedited treatment of this submittal so that an order may
issue prior to January 1, 2010 accenting 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
161,005 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]").
111F
N 0 V 2 3 2 y�
P ' DEPT,
November 20, 2009
Page 2
LATHAM&WATKINS«I
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 I. 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 3
LATHAM&WATKINSLII
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.
III. 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 Agreement.' 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, 2009
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.
submitted,
Michael J. ergen`
Jared W. Johnson
G. Scott Binnings
Counsel for City of Vernon
Enclosures