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Resolution No. 2017-051RESOLUTION NO. 2017-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING A TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR 2018 IN ACCORDANCE WITH VERNON'S TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF SHEET CHANGES TO IMPLEMENT THE ADJUSTMENT WHEREAS, the City of Vernon ("City") is a chartered municipal corporation of the State of California that owns and operates a system for the generation, purchase, transmission, distribution and sale of electric capacity and energy; and WHEREAS, the City is a Participating Transmission Owner ("PTO") with the California Independent System Operator Corporation, a California nonprofit public benefit corporation ("CAISO"); and WHEREAS, the CAISO requires a PTO to turn over operational control of its transmission facilities and entitlements to the CAISO; WHEREAS, in return, the CAISO collects revenues for each PTO pursuant to calculations that reflect the expenses and capital costs incurred by each PTO to provide transmission services; and WHEREAS, the relationship between PTOs and CAISO is governed by a Transmission Control Agreement ("TCA") which sets forth the specific duties and obligations of all PTOs including the filing of a Transmission Owner Tariff ("TO Tariff") with the Federal Energy Regulatory Commission ("FERC"); and WHEREAS, in order to ensure that all Transmission Revenue Credits are flowed through to CAISO's open access transmission tariff ("CAISO Tariff") customers, the City annually updates its Transmission Revenue Balancing Account Adjustment ("TRBAA") by a dollar amount reflecting the proposed Transmission Revenue Credits adjusted for difference between projected and actual credits from the prior year; and WHEREAS, a Notice of Public Hearing was published on October 3, 2017, notifying all interested parties that a hearing to consider evidence to establish the City's new TRBAA for 2018 was scheduled for October 17, 2017, at approximately 9:00 a.m; and WHEREAS, the regular City Council meeting scheduled for October 17, 2017 was adjourned to October 24, 2017; and WHEREAS, notice of the Public Hearing was posted in accordance with Government Code section 54955.1; and WHEREAS, a Public Hearing was held on October 24, 2017, in which the City Council took evidence from staff and those other persons in attendance who wished to be heard on the establishment of the City's new TRBAA; and WHEREAS, the Public Utilities Department has prepared a Report, with exhibits, dated on or about October 17, 2017 ("Report"), which determines the new TRBAA for 2018 to be consistent with the TO Tariff and supports the TRBAA and the changes to Appendix I of the TO Tariff to implement the new TRBAA effective January 1, 2018; and WHEREAS, the Public Utilities Department has recommended that the TRBAA and Appendix I to the TO Tariff implementing the new TRBAA be approved; and WHEREAS, the City Council has heard and considered all evidence, both written and oral, presented in consideration of the establishment of the City's new TRBAA and revised Appendix I to the TO Tariff implementing the new TRBAA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE - 2 - CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt from California Environmental Quality Act ("CEQA") review, because it is a fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. SECTION 3: 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 establishment of the City's new TRBAA and amended Appendix I to the TO Tariff implementing the new TRBAA, and, after due consideration of any and all evidence submitted at the public hearing, determines that there are compelling reasons to justify the establishment of the City's new TRBAA for 2018 and an amended Appendix I to the TO Tariff implementing the new TRBAA for 2018, a copy of which is attached hereto as Exhibit A and made a part hereof. SECTION 4: The City Council of the City of Vernon hereby approves, pursuant to the TO Tariff and to be effective on January 1, 2018, the establishment of the City's new TRBAA for 2018, and revised Appendix I to the TO Tariff implementing the new TRBAA for 2018, as described in the Report, a copy of which is attached hereto as Exhibit B and made a part hereof. SECTION 5: The City Council of the City of Vernon hereby authorizes outside counsel to submit the City's new TRBAA for 2018, the revised Appendix I to the TO Tariff, and supporting documentation, such as the Report and this City Council Resolution, to FERC on behalf of - 3 - the City of Vernon. SECTION 6: The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk's or Deputy City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 24t" day of October, 2017. Name. MelissA. Ybarra TTEST; Title: Mayor Maria Ayala Cit Clerk APPROVED AS TO FORM: Katharine mape 4"-Esq. Spiegel & McDiarmid, LLP Special Counsel to City - 4 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Maria E . Ayala, City Clerk / of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2017-51, was duly passed, approved and adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council duly held on Tuesday, October 24, 2017, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this�day of October, 2017, at Vernon, California. (SEAL) - 5 - Mariaq Ayala City Clerk / y i __ EXHIBIT A APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $2,03ter ,1642,91-5 648 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: Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($24336,502) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($5,79212,450) 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 negative $47,1E638,427 for calendar year 201-S. Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is ' ,1,—�72-9 1,154,492 MWhs. 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. APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $2,915,648 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: $2,766,120 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($336,502) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($12,450) 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 negative $38,427 for calendar year 2018. Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,154,492 MWhs. 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. EXHIBIT B CITY OF VERNON PUBLIC UTILITIES DEPARTMENT REPORT REGARDING THE ESTABLSHMENT OF A NEW TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR CALENDAR YEAR 2018 October 17, 2017 The City of Vernon ("Vernon" or "City") is a Scheduling Coordinator and a Participating Transmission Owner ("PTO") in the California Independent System Operator Corporation ("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 The relationship between PTOs and the ISO is governed by a Transmission Control Agreement ("TCA"), which sets forth the specific duties and obligations of all PTOs. The TCA requires all PTOs to file a Transmission Owner Tariff ("TO Tariff") with the Federal Energy Regulatory Commission ("FERC"). Pursuant to Section 5.2 of the TO Tariff, Vernon updates its Transmission Revenue Balancing Account Adjustment ("TRBAX) annually. The TRBAA is a tariff mechanism designed to ensure that all Transmission Revenue Credits ("TRCs") are flowed through to ISO open access transmission tariff ("ISO Tariff") customers via annual update filings at the FERC by PTOs. Appendix F, Schedule 3, Section 6.1(b), of the ISO Tariff describes the annual TRBAA calculation as "a dollar amount based on the projected Transmission Revenue Credits as adjusted for the true up of the prior year's difference between projected and actual credits." This Report supports the establishment of a new TRBAA based on the requirements of the TO Tariff and the ISO Tariff. SIIMMARY Section 5.2 of the Vernon TO Tariff identifies the items to be reflected in the TRBAA TRBAA Report 2018 Page 2 of 5 and sets forth the procedure for revising the Transmission Revenue Balancing Account ("TRBA") on an annual basis, as follows: 5.2 Transmission Revenue Balancing Account Adjustment The Participating TO shall maintain a TRBA that will ensure that all Transmission Revenue Credits and the refunds, specified in Sections 6 and 8 of Appendix F, Schedule 3 of the ISO Tariff, flow through to transmission customers. The TRBAA shall be equal to: TRBAA = TRCF + TRCT + I. TRCT = The balance representing the prior period difference between the projected Transmission Revenue Credits and the actual credits. TRCF = The forecast of Transmission Revenue Credits for the following calendar year. I = The interest balance for the TRBA, which shall be calculated using the interest rate pursuant to Section 35.19(a) of FERC's regulations under the Federal Power Act (18 C.F.R. § 35.19(a)). Interest shall be calculated based on the average TRBA principal balance each month, compounded quarterly. Transmission Revenue Credits ("TRCs") are defined in Section 3.12 of the current Vernon TO Tariff as follows: 3.12 Transmission Revenue Credit: The sum of all revenues received by the Participating TO from the ISO for Wheeling service. The TRBAA is based on the balance in the TRBA as of September 30 of the current year and a forecast of the TRCs expected to be received in the following year. A summary of the elements of the Vernon TRBAA proposed to be effective January 1, 2018 is shown in Exhibit 1. It shows that the balance in the Vernon TRBA as of TRBAA Report 2018 Page 3 of 5 September 30, 2017, which reflects services rendered through June 30, 2017, is a credit of $24,776, including interest. TRCs are projected to be a credit of $2,890. Taken together, these items sum up to a TRBAA to be effective for the twelve months starting January 1, 2018 of a credit, or negative, balance of $27,667. All of the Vernon transmission entitlements that are reflected in Vernon's transmission rates and the TRBAA are high voltage facilities. Therefore, there is no need to allocate TRCs or other TRBAA components between high voltage and low voltage rates. CALCULATION OF THE NEW TRBAA The TRBAA is equal to the sum of: TRCF + TRCT+ I. The balance in the TRBA of a credit of $35,537 as of September 30, 2017 represents the sum of the TRCT and the I components. The TRCT Component of Vernon's TRBAA TRCT represents a balance that reflects the difference for the prior period between the projected TRCs and the actual credits. The prior period in this case is the twelve-month period starting October 1, 2016 and ending September 30, 2017. A summary of the determination of the September 30, 2017 balance in the Vernon TRBA is shown in Exhibit 2. The TRCT component reflects 1) the previously projected 2016 TRCs for Vernon of $411 or $34.25 per month, for the months October through December 2016, and 2) projected 2017 TRCs of $47,616 or $3,968 per month, for the months January through September 2017—both elements as reflected on Line No. 2 of Exhibit 2. Adjustments for actual payable TRCs reflecting high voltage wheeling revenues payable to the TO (i.e., Vernon) are reflected in Line 3 of Exhibit 2. Distribution of non-refundable interconnection amounts (further discussed below) are reflected in Line 4 of Exhibit 2 and produce the under (over) collection figures for the monthly payable TRC balances reflected in Line 5 of Exhibit 2. The monthly balances are carried forward from month to month in Line 6 of Exhibit 2. Interest is calculated monthly (the I component) on the average monthly TRBAA Report 2018 Page 4 of 5 balance and is compounded quarterly into the monthly payable TRC balances pursuant to Section 5.2 of the Vernon TO Tariff. The interest calculation for payable TRC balances is shown in Lines 7-9 of Exhibit 2. The TRBA balance on September 30, 2017 is shown in Line 13 of Exhibit 2. The I (Interest) Component of Vernon's TRBAA As discussed above, the I component reflects interest on payable balances and on payments for prior year TRCs. As provided in Section 5.2 of Vernon's TO Tariff, monthly interest carrying costs are calculated using the 18 C.F.R. § 35.19(a) interest rates and calculation method. These interest rates are published by FERC and reflect the prime rate values published in the Federal Reserve Bank's "Selected Interest Rates." The calculation of interest is reflected in Exhibit 2 and is included as an integral part of the calculation of the TRBA balance on September 30, 2017. It is not reflected as a separate line item in Exhibit 1 The TRCF Component of Vernon's TRBAA The TRCF component of Vernon's TRBAA stands for the forecast of TRCs for the following calendar year, in this case 2018. These forecast TRCs reflect projected wheeling revenues. Wheeling revenues, which correspond to ISO Charge Type 384, are projected to be a credit of $2,890.28, as shown in Exhibit 3 These projections are based on the accruals for services provided during the twelve- month period ending June 30, 2017, which are reflected in the ISO's invoices to Vernon through September 30, 2017. A summary of the monthly accruals for the twelve months ending September 30, 2017 is shown in Exhibit 4. TRBAA Report 2018 Page 5 of 5 Distribution of Non -Refundable Interconnection Amounts Under Section 7.6 of Appendix DD of the ISO Tariff, "Application of Non -Refundable Amounts," "[t]he CAISO shall calculate and disburse available non-refundable interconnection study deposits and interconnection financial security in conjunction with the annual reassessment performed during the year that the withdrawal period ends." As a Participating Transmission Owner, Vernon received a share of the non- refundable interconnection financial security and study deposit amounts for projects withdrawn from January 1, 2013 through December 31, 2016. In particular, Vernon received $10,089.32 in the month of January 2017 and $10,742.50 in the month of September 2017 for projects withdrawn from January 1, 2013 through December 31, 2016. . In order to distribute those funds to its ratepayers through its TRBAA mechanism in accordance with Section 7.6 (c) of Appendix DD, Vernon has added Line 4 to the spreadsheet it uses to calculate its TRBAA, Exhibit 2 to this report. That line is entitled "Distribution of Non -Refundable Interconnection Amounts" and tracks funds distributed by the ISO from month to month. RECOMMENDATIONS 1. Approve the newly calculated TRBAA of a negative $38,427, 2. Approve replacing the existing TRBAA of negative $47,616 with the new TRBAA for 2018 of a negative $38,427. 3. Approve the attached revised Appendix I of Vernon's TO Tariff reflecting the TRBAA of negative $38,427. 4. Authorize outside counsel to submit Vernon's TRBAA and supporting documentation, such as this Report and the City Council Resolution approving the new TRBAA to FERC. TRBAA Report 2018 Exhibit 1 A B C D E F G H I 1 [1] [2] [3] [4] [5] CITY OF VERNON TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT (TRBAA) CALENDAR YEAR 2018 DESCRIPTION TOTAL Balance in TRBA on September 30, 2017 ($35,537) including interest Forecast Transmission Revenue Credits ($2,890) TRBAA ($38,427) Source: Exhibit 2, Column O, Line No.13. Exhibit 3, Column F, Line No.13. 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 Z S y 5 a o z m mo 5 g� m m oz m m a c m w m N W O Oo IV O1 _ Z H - - N N ((....ff a• q 3 p w W V A m + O C N O vW �Jp A sea a J c ro O 0 O N m W m IJ O ip N w m W N (Na o %n O m fNli W O Ol I tbu WW N W N m m m GZ1 N N w w N W � m D T T 00 oo0o w m AA 1 N b r m W J 00 W m W N _ NON o � U T O C `T1 Y = Z 3 00 y Z e o A 1 w aG o { Z O a c C T mG M m �r-z �Do NOD -4ZZ n A g a A C �p Z ^ o '8i � _ O � J m r tND O O! W N � u � o 8 w No D Z TRBAA Report 2018 Exhibit 3 A B C D I E F G 1 [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] MONTH January-17 February-17 March-17 April-17 May-17 June-17 July-17 August-17 September-17 October-17 November-17 December-17 Total CITY OF VERNON FORECAST TRANSMISSION CREDITS for Calendar Year 2018 TRBAA Wheeling Total ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) 240.86 240.86 ($2,890.28) ($2,890.28) 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 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 TRBAA Report 2018 Exhibit 4 A B I C I D I E JF17G H I 1 [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] Vernon Historical Transmission Credits for Calendar Year 2018 TRBAA Wheeling Revenues ISO INVOICE Month CT 384 Final Adjustments July-16 ($1,018.02) August-16 ($133.59) September-16 ($87.96) October-16 ($62.72) November-16 ($51.53) December-16 ($44.45) January-17 ($49.43) February-17 ($57.33) March-17 ($205.29) April-17 ($123.84) May-17 ($115.08) June-17 ($941.04) Total ($1,018.02) ($133.59) ($87.96) ($62.72) ($51.53) ($44.45) ($49.43) ($57.33) ($205.29) ($123.84) ($115.08) ($941.04) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 N23 TRANSMITTAL COMMUNICATION CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: October 25, 2017 TO: Kelly Nguyen, General Manager of Public Utilities FROM: Deborah Juarez, Records Management Assistant �T RE: Resolution No. 2017-51 — A Resolution of the City Council of the City of Vernon Establishing a Transmission Revenue Balancing Account Adjustment for 2018 in Accordance with Vernon's Transmission Owner Tariff and Providing for Tariff Sheet Changes to Implement the Adjustment Transmitted herewith is a certified copy of Resolution No. 2017-51 referenced above, which was approved by City Council on October 24, 2017, and an original notarized affidavit of Kelly Nguyen for your transmittal to the appropriate party. Please ensure that a copy of the transmittal communication is sent to my attention for the file. Thank you. Enclosures Abraham Alemu Resolution No. 2017-51 CERTIFICATE STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES) I, Maria E. Ayala, 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. 2017-51 - A Resolution of the City Council of the City of Vernon Establishing a Transmission Revenue Balancing Account Adjustment for 2018 in Accordance with Vernon's Transmission Owner Tariff and Providing for Tariff Sheet Changes to Implement the Adjustment 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 25-t' day of October 2017. SEAL: �11 / Y V �� Maria E. Aya City lerk AFFIDAVIT OF KELLY NGUYEN STATE OF CALIFORNIA ) SS. COUNTY OF LOS ANGELES ) Kelly Nguyen, being duly sworn, deposes and states that she is the General Manager of Vernon Public Utilities; that the "City of Vernon Vernon Public Utilities Department Staff Report Regarding the Establishment of a New Transmission Revenue Balancing Account Adjustment for Calendar Year 2018," including Exhibit 1 through 4 that are part of that Report, were prepared under her supervision; that the report and exhibits are correct to the best of her knowledge, information, and belief; and that she presented this report to the Vernon City Council as the basis for the Transmission Revenue Balancing Account Adjustment and Transmission Owner Tariff Appendix I Amendment that is being filed by Vernon at the Federal Energy Regulatory Commission. `Z � 7C '7 elly` guyen Date ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. ...................................................................................................................................................................................................................................................................................,.: State of California) County of Los Angeles) On October 24, 2017 before me Marisol Trujillo, Notary Public (insert name and title of the officer) personally appeared Kelly Nguyen , who proved to me on the basis of satisfactory evidence to be the person(-s� whose name(*is/are subscribed to the within instrument and acknowledged to me that Ire/she/they executed the same in authorized capacity(irst, and that by his/her/their signature(gy on the instrument the person f s}, or the entity upon behalf of which the person(o acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS m hand and official seal. ' .•. MA Commission T 2093O Y Commission #� 2093319 Notary Public - California n Z _ . Los Angeles County My Comm. Expires Dec 23, 2018 Signdlure STAFF REPORT OCT 12 t017 CITY CLERK'S OFFICE STAFF REPORT OCT 12 2017 CITY ADMINISTRATION PUBLIC UTILITIES DEPARTMENTC* (o1 � 2l ►'l DATE: October 17, 2017 TO: Honorable Mayor and City Council FROM: Kelly Nguyen, General Manager of Public Utilities 4 RE: A Resolution Establishing a Transmission Revenue Balancing Account Adjustment for 2018 in Accordance with Vernon's Transmission Owner Tariff and Providing for Tariff Sheet Changes to Implement the Adjustment Recommendation A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Conduct a Public Hearing; and C. Adopt a resolution establishing a Transmission Revenue Balancing Account Adjustment for 2018 in accordance with Vernon's Transmission Owner Tariff and providing for Tariff Sheet changes to implement the adjustment. Background The City of Vernon is a Scheduling Coordinator and a Participating Transmission Owner ("PTO") in the California Independent System Operator Corporation ("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. The relationship between PTOs and the ISO is governed by a Transmission Control Agreement ("TCA"), which sets forth the specific duties and obligations of all PTOs. The TCA requires all PTOs to file a Transmission Owner Tariff ("TO Tariff') with the Federal Energy Regulatory Commission ("FERC"). Pursuant to Section 5.2 of the TO Tariff, Vernon updates its Transmission Revenue Balancing Page 1 of 2 Account Adjustment ("TRBAA") annually. The TRBAA is a tariff mechanism designed to ensure that all Transmission Revenue Credits ("TRCs") are flowed through to ISO open access transmission tariff ("ISO Tariff') customers via annual update filings at the FERC by PTOs. Appendix F, Schedule 3, Section 6.1(b), of the ISO Tariff describes the annual TRBAA calculation as "a dollar amount based on the projected Transmission Revenue Credits as adjusted for the true up of the prior year's difference between projected and actual credits." The attached TRBAA Report supports the establishment of a new TRBAA based on the requirements of the TO Tariff and the ISO Tariff. Fiscal Impact None Attachments 1. Notice of Public Hearing to Establish New Transmission Revenue Balancing Account Adjustment 2. Resolution Establishing a Transmission Revenue Balancing Account Adjustment for 2018 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 (323)583-8811 NOTICE OF TWO SEPARATE PUBLIC HEARINGS REGARDING THE ESTABLISHMENT OF VERNON'S NEW TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT AND VERNON'S NEW EXISTING TRANSMISSION CONTRACT ADJUSTMENT The City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall City Council Chamber 4305 Santa Fe Avenue Vernon, CA 90058 DATE & TIME: Tuesday, October 17, 2017, at 9:00 a.m. (or as soon thereafter as the matter can be heard) PURPOSE/SUBJECT: (1) 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 (2) To consider evidence to establish new Gross Load and 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. DOCUMENTS FOR REVIEW: Copies of a Resolution Establishing a Transmission Revenue Balancing Account Adjustment for 2018 and a Resolution Adopting a New Transmission Revenue Requirement will be available for public examination at Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California or at http://www.cityofvernon.oEgLgovemmendpublic- meetinds/city-council from October 12 to October 17, 2017. Please send your comments or questions to: Abraham Alemu City of Vernon, Public Utilities 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 583-8811 Ext. 250 AALemu@ci.vemon.ca.us PROPOSED CEQA FINDING: Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. If you challenge the adoption/approval of the establishment of Vernon's new Transmission Revenue Balancing Account Adjustment, or 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. Americans with Disabilities Act (ADA): In compliance with ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811 ext. 546. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: October 3, 2017 _ _� Maria .Ayala, City rk RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING A TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR 2018 IN ACCORDANCE WITH VERNON'S TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF SHEET CHANGES TO IMPLEMENT THE ADJUSTMENT WHEREAS, the City of Vernon ("City") is a chartered municipal corporation of the State of California that owns and operates a system for the generation, purchase, transmission, distribution and sale of electric capacity and energy; and WHEREAS, the City is a Participating Transmission Owner ("PTO") with the California Independent System Operator Corporation, a California nonprofit public benefit corporation ("CAISO"); and WHEREAS, the CAISO requires a PTO to turn over operational control of its transmission facilities and entitlements to the CAISO; and WHEREAS, in return, the CAISO collects revenues for each PTO pursuant to calculations that reflect the expenses and capital costs incurred by each PTO to provide transmission services; and WHEREAS, the relationship between PTOs and CAISO is governed by a Transmission Control Agreement ("TCA") which sets forth the specific duties and obligations of all PTOs including the filing of a Transmission Owner Tariff ("TO Tariff") with the Federal Energy Regulatory Commission ("FERC"); and WHEREAS, in order to ensure that all Transmission Revenue Credits are flowed through to CAISO's open access transmission tariff ("CAISO Tariff") customers, the City annually updates its Transmission Revenue Balancing Account Adjustment ("TRBAA") by a dollar amount reflecting the proposed Transmission Revenue Credits adjusted for difference between projected and actual credits from the prior year; and WHEREAS, a Notice of Public Hearing was published on October 3, 2017, notifying all interested parties that a hearing to consider evidence to establish the City's new TRBAA for 2018 was scheduled for October 17, 2017, at approximately 9:00 a.m; and WHEREAS, the regular City Council meeting scheduled for October 17, 2017 was adjourned to October 24, 2017; and WHEREAS, notice of the Public Hearing was posted in accordance with Government Code section 54955.1; and WHEREAS, a Public Hearing was held on October 24, 2017, in which the City Council took evidence from staff and those other persons in attendance who wished to be heard on the establishment of the City's new TRBAA; and WHEREAS, the Public Utilities Department has prepared a Report, with exhibits, dated on or about October 17, 2017 ("Report"), which determines the new TRBAA for 2018 to be consistent with the TO Tariff and supports the TRBAA and the changes to Appendix I of the TO Tariff to implement the new TRBAA effective January 1, 2018; and WHEREAS, the Public Utilities Department has recommended that the TRBAA and Appendix I to the TO Tariff implementing the new TRBAA be approved; and WHEREAS, the City Council has heard and considered all evidence, both written and oral, presented in consideration of the establishment of the City's new TRBAA and revised Appendix I to the TO Tariff implementing the new TRBAA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE - 2 - CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt from California Environmental Quality Act ("CEQA") review, because it is a fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. SECTION 3: 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 establishment of the City's new TRBAA and amended Appendix I to the TO Tariff implementing the new TRBAA, and, after due consideration of any and all evidence submitted at the public hearing, determines that there are compelling reasons to justify the establishment of the City's new TRBAA for 2018 and an amended Appendix I to the TO Tariff implementing the new TRBAA for 2018, a copy of which is attached hereto as Exhibit A and made a part hereof. SECTION 4: The City Council of the City of Vernon hereby approves, pursuant to the TO Tariff and to be effective on January 1, 2018, the establishment of the City's new TRBAA for 2018, and revised Appendix I to the TO Tariff implementing the new TRBAA for 2018, as described in the Report, a copy of which is attached hereto as Exhibit B and made a part hereof. SECTION 5: The City Council of the City of Vernon hereby authorizes outside counsel to submit the City's new TRBAA for 2018, the revised Appendix I to the TO Tariff, and supporting documentation, such as the Report and this City Council Resolution, to FERC on behalf of - 3 - the City of Vernon. SECTION 6: The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk's or Deputy City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 24th day of October, 2017. ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Katharine Mapes, Esq. Spiegel & McDiarmid, LLP Special Counsel to City Name: Title: Mayor - 4 - STATE OF CALIFORNIA COUNTY OF LOS ANGELES I, ss , City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council duly held on Tuesday, October 24, 2017, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of October, 2017, at Vernon, California. (SEAL) - 5 - City Clerk / Deputy City Clerk EXHIBIT A APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $3. : ,4-642,915,648 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: $ : - c%,--Yoo_ tab. 120 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($:a:= ( 2. 45( 1) 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 negative $-P-.*1-638,42? for calendar year 201 Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is _i_ 14.49' MWhs. 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. APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $2,915,648 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: $2,766,120 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($336,502) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($12,450) 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 negative $38,427 for calendar year 2018. Vernon's Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,154,492 MWhs. 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. EXHIBIT B CITY OF VERNON PUBLIC UTILITIES DEPARTMENT REPORT REGARDING THE ESTABLSHMENT OF A NEW TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR CALENDAR YEAR 2018 October 17, 2017 The City of Vernon ("Vernon" or "City") is a Scheduling Coordinator and a Participating Transmission Owner ("PTO") in the California Independent System Operator Corporation ("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. The relationship between PTOs and the ISO is governed by a Transmission Control Agreement ("TCA"), which sets forth the specific duties and obligations of all PTOs. The TCA requires all PTOs to file a Transmission Owner Tariff ("TO Tariff") with the Federal Energy Regulatory Commission ("FERC"). Pursuant to Section 5.2 of the TO Tariff, Vernon updates its Transmission Revenue Balancing Account Adjustment ("TRBAA") annually. The TRBAA is a tariff mechanism designed to ensure that all Transmission Revenue Credits ("TRCs") are flowed through to ISO open access transmission tariff ("ISO Tariff") customers via annual update filings at the FERC by PTOs. Appendix F, Schedule 3, Section 6.1(b), of the ISO Tariff describes the annual TRBAA calculation as "a dollar amount based on the projected Transmission Revenue Credits as adjusted for the true up of the prior year's difference between projected and actual credits." This Report supports the establishment of a new TRBAA based on the requirements of the TO Tariff and the ISO Tariff. SUMMARY Section 5.2 of the Vernon TO Tariff identifies the items to be reflected in the TRBAA TRBAA Report 2018 Page 2 of 5 and sets forth the procedure for revising the Transmission Revenue Balancing Account ("TRBA") on an annual basis, as follows: 5.2 Transmission Revenue Balancing Account Adjustment The Participating TO shall maintain a TRBA that will ensure that all Transmission Revenue Credits and the refunds, specified in Sections 6 and 8 of Appendix F, Schedule 3 of the ISO Tariff, flow through to transmission customers. The TRBAA shall be equal to: TRBAA = TRCF + TRCT + I. TRCT = The balance representing the prior period difference between the projected Transmission Revenue Credits and the actual credits. TRCF = The forecast of Transmission Revenue Credits for the following calendar year. I = The interest balance for the TRBA, which shall be calculated using the interest rate pursuant to Section 35.19(a) of FERC's regulations under the Federal Power Act (18 C.F.R. § 35.19(a)). Interest shall be calculated based on the average TRBA principal balance each month, compounded quarterly. Transmission Revenue Credits ("TRCs") are defined in Section 3.12 of the current Vernon TO Tariff as follows: 3.12 Transmission Revenue Credit: The sum of all revenues received by the Participating TO from the ISO for Wheeling service. The TRBAA is based on the balance in the TRBA as of September 30 of the current year and a forecast of the TRCs expected to be received in the following year. A summary of the elements of the Vernon TRBAA proposed to be effective January 1, 2018 is shown in Exhibit 1. It shows that the balance in the Vernon TRBA as of TRBAA Report 2018 Page 3 of 5 September 30, 2017, which reflects services rendered through June 30, 2017, is a credit of $24,776, including interest. TRCs are projected to be a credit of $2,890. Taken together, these items sum up to a TRBAA to be effective for the twelve months starting January 1, 2018 of a credit, or negative, balance of $27,667. All of the Vernon transmission entitlements that are reflected in Vernon's transmission rates and the TRBAA are high voltage facilities. Therefore, there is no need to allocate TRCs or other TRBAA components between high voltage and low voltage rates. CALCULATION OF THE NEW TRBAA The TRBAA is equal to the sum of: TRCF + TRCT + I. The balance in the TRBA of a credit of $35,537 as of September 30, 2017 represents the sum of the TRCT and the I components. The TRCT Component of Vernon's TRBAA TRCT represents a balance that reflects the difference for the prior period between the projected TRCs and the actual credits. The prior period in this case is the twelve-month period starting October 1, 2016 and ending September 30, 2017. A summary of the determination of the September 30, 2017 balance in the Vernon TRBA is shown in Exhibit 2. The TRCT component reflects 1) the previously projected 2016 TRCs for Vernon of $411 or $34.25 per month, for the months October through December 2016, and 2) projected 2017 TRCs of $47,616 or $3,968 per month, for the months January through September 2017—both elements as reflected on Line No. 2 of Exhibit 2. Adjustments for actual payable TRCs reflecting high voltage wheeling revenues payable to the TO (i.e., Vernon) are reflected in Line 3 of Exhibit 2. Distribution of non-refundable interconnection amounts (further discussed below) are reflected in Line 4 of Exhibit 2 and produce the under (over) collection figures for the monthly payable TRC balances reflected in Line 5 of Exhibit 2. The monthly balances are carried forward from month to month in Line 6 of Exhibit 2. Interest is calculated monthly (the I component) on the average monthly TRBAA Report 2018 Page 4 of 5 balance and is compounded quarterly into the monthly payable TRC balances pursuant to Section 5.2 of the Vernon TO Tariff. The interest calculation for payable TRC balances is shown in Lines 7-9 of Exhibit 2. The TRBA balance on September 30, 2017 is shown in Line 13 of Exhibit 2. The I (Interest) Component of Vernon's TRBAA As discussed above, the I component reflects interest on payable balances and on payments for prior year TRCs. As provided in Section 5.2 of Vernon's TO Tariff, monthly interest carrying costs are calculated using the 18 C.F.R. § 35.19(a) interest rates and calculation method. These interest rates are published by FERC and reflect the prime rate values published in the Federal Reserve Bank's "Selected Interest Rates." The calculation of interest is reflected in Exhibit 2 and is included as an integral part of the calculation of the TRBA balance on September 30, 2017. It is not reflected as a separate line item in Exhibit 1. The TRCF Component of Vernon's TRBAA The TRCF component of Vernon's TRBAA stands for the forecast of TRCs for the following calendar year, in this case 2018. These forecast TRCs reflect projected wheeling revenues. Wheeling revenues, which correspond to ISO Charge Type 384, are projected to be a credit of $2,890.28, as shown in Exhibit 3. These projections are based on the accruals for services provided during the twelve- month period ending June 30, 2017, which are reflected in the ISO's invoices to Vernon through September 30, 2017. A summary of the monthly accruals for the twelve months ending September 30, 2017 is shown in Exhibit 4. TRBAA Report 2018 Page 5 of 5 Distribution of Non -Refundable Interconnection Amounts Under Section 7.6 of Appendix DD of the ISO Tariff, "Application of Non -Refundable Amounts," "[t]he CAISO shall calculate and disburse available non-refundable interconnection study deposits and interconnection financial security in conjunction with the annual reassessment performed during the year that the withdrawal period ends." As a Participating Transmission Owner, Vernon received a share of the non- refundable interconnection financial security and study deposit amounts for projects withdrawn from January 1, 2013 through December 31, 2016. In particular, Vernon received $10,089.32 in the month of January 2017 and $10,742.50 in the month of September 2017 for projects withdrawn from January 1, 2013 through December 31, 2016. . In order to distribute those funds to its ratepayers through its TRBAA mechanism in accordance with Section 7.6 (c) of Appendix DD, Vernon has added Line 4 to the spreadsheet it uses to calculate its TRBAA, Exhibit 2 to this report. That line is entitled "Distribution of Non -Refundable Interconnection Amounts" and tracks funds distributed by the ISO from month to month. RECOMMENDATIONS 1. Approve the newly calculated TRBAA of a negative $38,427, 2. Approve replacing the existing TRBAA of negative $47,616 with the new TRBAA for 2018 of a negative $38,427. 3. Approve the attached revised Appendix I of Vernon's TO Tariff reflecting the TRBAA of negative $38,427. 4. Authorize outside counsel to submit Vernon's TRBAA and supporting documentation, such as this Report and the City Council Resolution approving the new TRBAA to FERC. TRBAA Report 2018 Exhibit 1 A B C D E F G H I 1 2 3 CITY OF VERNON 4 TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT (TRBAA) 5 CALENDAR YEAR 2018 6 7 DESCRIPTION TOTAL 8 9 [1] Balance in TRBA on September 30, 2017 ($35,537) 10 including interest 11 12 [2] Forecast Transmission Revenue Credits ($21890) 13 14 (3] TRBAA ($38,427) 15 16 17 18 Source: 19 [4] Exhibit 2, Column 0, Line No.13. 20 [5] Exhibit 3, Column F, Line No.13. { \ k I| K| ! | % () } \ ( ` : | f| ! § ! ! ! )\ 2 «7a a @ 8 # ¥ 2 ! ! - k-t # § # ƒJm # m k \ a # - ) 2) t ® 0( m _ { �2 }<)- ¥ ;2a ® �§2 �;E �a k ) # ° # § § - -- TRBAA Report 2018 Exhibit 3 A B C D I E F G 1 [1 ] [2] [3] [4] [5] [6] [7] (8] [9] [10] [11] [12] [13] MONTH January-17 February-17 March-17 April-17 May-17 June-17 July-17 August-17 September-17 October-17 November-17 December-17 Total CITY OF VERNON FORECAST TRANSMISSION CREDITS for Calendar Year 2018 TRBAA Wheeling Total ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240.86) ($240 86) ($240.86) 240.86 $2( 40.86) ($2,890.28) ($2,890.28) 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 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 TRBAA Report 2018 Exhibit 4 A B I C I D I E I FIGFIGI H I I 1 [1] [2] (3) [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] Vernon Historical Transmission Credits for Calendar Year 2018 TRBAA Wheeling Revenues ISO INVOICE Month CT 384 Final Adjustments July-16 ($1,018.02) August-16 ($133.59) September-16 ($87.96) October-16 ($62.72) November-16 ($51.53) December-16 ($44.45) January-17 ($49.43) February-17 ($57.33) March-17 ($205.29) April-17 ($123.84) May-17 ($115.08) June-17 ($941.04) Total ($1,018.02) ($133.59) ($87.96) ($62.72) ($51.53) ($44.45) ($49.43) ($57.33) ($205.29) ($123.84) ($115.08) ($941.04) ($2.890 M 2 3 4 6 7 P5 8 9 10 11 12 13 14 15 16 17 18 19 20 21 R2425 This space is for the County Clerk's Filing Stamp Zzts#erxr ( ra�x� �zC�Xir�x ioxts, �1ztr_ 161 S. AVENUE 24, LOS ANGELES, CA 90031 323 221-1092 • FX: 323 221-1090 • www.egpnews.com PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I am a citizen of the United States and a resident of the County aforementioned; I am over the age of eighteen years, and not a party to or interested in the above -entitled matter. I am the principal clerk of the printer of EASTERN GROUP PUBLICATIONS' EASTSIDE SUN, NORTHEAST SUN BELL GARDENS SUN, VERNON SUN, COMMERCE COMET AND MNTEBEL,L0 COMET, newspapers of general circulation, printed and published THURSDAYS in the County of Los Angeles, and which newspaper of general circulation by the Superior Court of the County of Los Angeles, State of California, under the date of JUNE 21, 1966, CASE NUMBER 884861, that the notice, of which the annexed is printed copy (set in type not smaller the nonpareil), has been published in each regular and entire issue of sail newspaper and not in any supplement thereof on the following dates, to -wit: OCTOBER 05, all in the year 2017. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at LOS ANGELES, California, this 05TTHH day of OCTOBER. 2017. CITY OF VERNON Proof of Publication of Citv of Vernon Notice of Two Separate Public Hea_rinas Regarding the Establishment of Vernon's New Transmission Revenue Balancing Account Adjustment and Vernon's New Existing Transmission Contract Adjustment CITY OF VERNON NOTICE OF TWO SEPARATE PUBLIC HEARINGS REGARDING THE ESTABLISHMENT OF VERNON'S NEW TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT AND VERNON'S NEW EXISTING TRANSMISSION CONTRACT ADJUSTMENT The City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall, City Council Chamber 4305 Santa Fe Avenue, Vernon, CA 90058 DATE & TIME: Tuesday, October 17, 2017, at 9:00 a.m. (or as soon thereafter as the matter can be heard) PURPOSE/SUBJECT: (1) 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 (2) To consider evidence to establish new Gross Load and 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. DOCUMENTS FOR REVIEW: Copies of a Resolution Establishing a Transmission Revenue Balancing Account Adjustment for 2018 and a Resolution Adopting a New Transmission Revenue Requirement will be available for public examination at Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California or at http://www.cityofvernon.org/government/public- meetings/city-council from October 12 to October 17, 2017. Please send your comments or questions to: Abraham Alemu City of Vernon, Public Utilities 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 583-8811 Ext. 250 AALemu@ci.vernon.ca.us PROPOSED CEQA FINDING: Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. If you challenge the adoption/approval of the establishment of Vernon's new Transmission Revenue Balancing Account Adjustment, or 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. Americans with Disabilities Act (ADA): In compliance with ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811 ext. 546. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Signature Dated: October 3 201'7 City Clerks