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Resolution No. 2017-057
RESOLUTION NO. 2017-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND ADOPTING THE VERNON PUBLIC UTILITIES DEPARTMENT RESOURCE ADEQUACY PLAN FOR 2018, WHICH INCLUDES THE PEAK DEMAND FORECAST, THE PLANNING RESERVE MARGIN, THE QUALIFYING CAPACITY CRITERIA AND THE QUALIFYING CAPACITY FROM SUCH RESOURCES, CITY'S RESOURCE ADEQUACY AND SUPPLY DATA AND APPROVES THE RESOURCES USED TO SATISFY THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR'S TARIFF REQUIREMENTS 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 has executed a Metered Subsystem Agreement ("MSS Agreement") with the California Independent System Operator ( "CAISO") ; and WHEREAS, the City is considered a Load Serving Entity ("LSE") under certain terms of the CAISO's Tariff ("Tariff"); and WHEREAS, the Tariff requires each LSE to establish and submit to CAISO an annual Resource Adequacy Plan, which includes a peak Demand Forecast, a Reserve Margin, Qualifying Capacity Criteria, and a Supply Plan; and WHEREAS, the Tariff requires each LSE to submit monthly Resource Adequacy Plans and Supply Plans; and WHEREAS, the City has reviewed the historical and expected demand for and supplies of electricity within its distribution system, including the likely peak demand for electricity within the City's distribution system throughout 2018, the available generation and other capacity to serve that demand, and constraints which might impact the availability of capacity to serve the City's projected peak demand; and WHEREAS, based upon that review, the City finds that the peak demand for electricity within the City's distribution system throughout 2018 is likely to experience load growth of approximately 0% as compared to the same months of the prior year; and WHEREAS, based upon that review, the City finds that the default 15% Reserve Margin set forth in the Resource Adequacy provisions of the MRTU Tariff is sufficient for planning purposes; and WHEREAS, based upon that review, the City finds that the Qualifying Capacity Criteria specified in the City of Vernon Demand Forecast for 2018, Planning Reserve Margin, Qualifying Capacity Criteria and Annual Resource Adequacy and Supply Plan are sufficient and appropriate to be used in determining the amount of Qualifying Capacity needed to meet the City's projected peak monthly demand and 15% Reserve Margin. 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 above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA), because it is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" under CEQA Guidelines section 15378; and SECTION 3: The City Council of the City of Vernon hereby approves and adopts the Public Utilities Department Resource Adequacy Plan for Calendar Year 2018 (the "Annual Resource Adequacy Plan"), which - 2 - includes the peak Demand Forecast, the Planning Reserve Margin, the Qualifying Capacity Criteria and the Qualifying Capacity from such resources, the annual Resource Adequacy and Supply data, and the Resource Adequacy resources that will be used to satisfy the City's Local Capacity Requirement for 2018, which is attached hereto as Exhibit A. SECTION 4: 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: 77� .� M is E . Aya City Clerk / y C e APPR VED AS TO FORM: r Brian Byun, Senior Deput City Attorney I LWId, ffs, /I I " � P, mm Mz...ve V I Id Ybarra - 3 - Title: Mayor - .,h Ape.kiqm yA Y STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I Maria E . Ayala City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2017-57, 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 �j� day of October, 2017, at Vernon, California. (SEAL) - 4 - Maria E yala City Clerk / t ]C-f EXHIBIT A City of Vernon Public Utilities Department Resource Adequacy Plan Calendar Year 2018 Background: The Resource Adequacy provisions of the CAISO's Tariff require the Scheduling Coordinator ("SC") of a Load Serving Entity ("LSE") such as the City of Vernon to establish and submit the following information upon approval from its Local Regulatory Authority. (1) a Coincident Peak Demand Forecast for its load, (2) a Reserve Margin used for planning purposes, (3) the Qualifying Capacity Criteria that will be used for determining qualifying resource types and the Qualifying Capacity from such resources, (4) an annual and monthly Resource Adequacy and Supply data, and (5) a list of the resource that will be used to satisfy the LSE's Local Capacity Requirement and Flexible Resource Adequacy Capacity Requirement showing. Staff has prepared this "City of Vernon Public Utilities Department Resource Adequacy Plan for Calendar Year 2018 consistent with the CAISO Tariff requirements. The following is a discussion of each of the CAISO Tariff requirements and how the City will meet each requirement. Coincident Peak Demand Forecast: Vernon's municipal load resides within the CAISO control area. The CAISO, as the balancing authority, has the responsibility for meeting reliability criteria established by the Western Electricity Coordinating Council ("WECC"). As such the CAISO has entered into agreements with various market participants including, but not limited to, Generators, Scheduling Coordinators, Participating Transmission Owners, Utility Distribution Companies, and Metered Subsystems ("MSS"), which impose certain responsibilities on parties to establish a reliable system. One of those responsibilities is to have operating reserves that meet the WECC minimum requirements. The CAISO's goal in considering reserve requirements is to balance available capacity with demand across the entire CAISO control area and, therefore, CAISO's primary concern is with the time and amount of peak demand on the CAISO-controlled transmission system (the "system peak"). In order to reduce demand during the period of the system peak (and, therefore, to lower the peak demand on the transmission system), utilities generally offer retail rate structures designed to encourage load shifting away from the on -peak period. Such efforts are intended to achieve on -peak demand reduction and lower the need to build new generation to meet peak demand. Vernon has adopted such a rate structure and has succeeded in shifting the peak demand period for Vernon's system to a time that is generally earlier than the time of the CAISO system peak. Vernon's share of needed capacity to meet CAISO control area capacity requirements may be established by determining the amount of Vernon's load that contributes to the CAISO system peak. Vernon's load that contributes to the CAISO system peak is the City of Vernon Coincident peak Demand. The process to establish Vernon's monthly coincident peak Demand Forecast consists of the following three steps: 1. Establish Monthly Vernon System Peak Demand Forecast for 2018 To establish Vernon's System peak demand forecast, Staff performs an analysis on the year to year change in the City's energy demand peaks during a five year period. Based on the results of the analysis, staff forecasts a load growth rate for the coming calendar year (Exhibit 1). This year's analysis shows that for the period between 2013 and 2017, the City of Vernon system peak demand has decreased 1.2%. Closer review of Exhibit 1 reveals that the decreases in system peak demand from 2016 to 2017 is 2.494%. Based on the current load trend and recent history of years of stagnation, Staff concluded that a 1.5% load reduction is an appropriate forecast for calendar year 2018. Exhibit 2 shows the determination of the projected system peak demand for 2018 that incorporates a 1.5% load reduction. The projected system peak demand for the City of Vernon is also shown below in Table 1. Table 1 Projected Load 2018 MW January 172.02 February 164.69 March 167.53 April 1169.93 la May 166.14 June 172.76 July 174.50 August 181.31 September 171.43 October 179.43 November ,177.57 December 1162.59 2. Establish Coincidental Peak Factor The coincidental peak factor is the percentage of the City of Vernon's energy demand at the time of the CAISO system peak demand. As set forth in Section 40 of the CAISO Tariff, the coincidental peak factor for each month has been calculated and provided to the City annually by the California Energy Commission (CEC). The monthly coincidental peak factor is shown in column C of Exhibit 3. 3. Calculate Monthly Coincident Peak Demand Forecast The City of Vernon's Coincident Peak Demand forecast is calculated as the mathematical product of the City of Vernon's forecasted System peak demand and the coincidental peak factor. This reflects the City of Vernon's projected demand at the time of the CAISO system peak demand for each month. The monthly coincident peak Demand Forecast is calculated and listed in column D of Exhibit 3 for the period of January through December 2018. It is also shown below in Table 2. Table 2 Demand Forecast 2017 MW January 129.9 February 128.8 March 131.2 April 138.2 May 128.6 3 June 146.7 July 151.6 August 145.8 September 134.2 October 141.0 November 145.1 December j132.2 Reserve Margin for Planning Purposes The Reserve Margin is the amount of Resource Adequacy Capacity that an LSE must maintain above its coincident peak Demand Forecast. Historically, the City of Vernon has established its Reserve Margin at 15%. Staff has recommended that the City Council maintain the Reserve Margin at 15% for planning purposes. The 15% Reserve Margin was used to establish the monthly Resource Adequacy obligation for the City of Vernon. The monthly Resource Adequacy obligation is listed in column E of Exhibit 3. Qualifying Capacity: A Load Serving Entity must provide the CAISO with a description of the criteria that will be used to determine the type of resources that can be used to meet its capacity obligation and the amount of capacity (Qualifying Capacity) from such resources. Historically Vernon has used the following criterion to determine whether a resource qualifies: It qualifies if Vernon has a contractual right to the power or has an interruptible service agreement with a customer. The six following resources are among those that meet this criterion and provide Qualifying Capacity. The calculation for the amount of Qualifying Capacity the six eligible resource types follows: 1. CAISO IST-enabled Product. Power supply contract/s entered through WSPP Agreement (MRTU Amendment) and defined as any SC -to -SC traded product for which an IST (Inter -SC Trades) can be submitted and for which CAISO will make payment or issue an invoice, including Energy, Tier I IFM Bid Cost Recovery rd Obligations and Ancillary Service Obligation trades, as each defined in the Tariff. 2. Palo Verde. Vernon Purchase Power Contract with SCPPA for 4.9% of SCPPA's share of Palo Verde Nuclear Generating Station (Palo Verde) shall be eligible as Qualifying Capacity. The power is scheduled as an import generally at Westwing Substation through the CAISO's entitlement of transmission from Westwing to SP-15. 3. Boulder Canyon. Contract NO 16-DSR-12650 between United States Department of Energy Western Area Power Administration Boulder Canyon Project and City of Vernon, California for Electric Service shall be eligible to count as Qualifying Capacity. The power is scheduled as an import at Mead Substation generally through the CAISO's entitlement of transmission from Mead Substation to SP-15. The amount of Qualifying Capacity will be based on the most current schedule for the available capacity from the Boulder Canyon Project at the time of submittal of the Resource Adequacy Plan. 4. Vernon Units. Generating units and system units (but excluding Vernon diesel generating units) within Vernon's MSS including the Malburg Generating Station and the City owned H. Gonzalez units, as reflected in Schedule 14 of Vernon's MSS Agreement with CAISO shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity of such units will be based on the projected dependable gross output capacity on a day when the ambient air temperature is 90 degrees Fahrenheit. 5. Long Term Power Purchase Contracts. Long term power supply contracts (5 years or more) entered through a power purchase agreement shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity will be based on the City of Vernon's percentage share of the contracted capacity quantity. For the upcoming year, the following contracts will count as Qualifying Capacity, Antelope DSR 1 Solar Project, Astoria 2 Solar Project and Puente Hills Landfill Gas -To -Energy Facility. 5 6. Other Units. All other capacity from a Participating Generator, a System Unit, or a System Resource, as defined in the CAISO Tariff, shall be eligible as Qualifying Capacity. System Resources, however, must have a firm transmission path from source to the CAISO control area. Such criteria for firm transmission facilities over the CAISO control area can be satisfied with the possession of a firm transmission right from the CAISO on the path associated with the System Resource. Firm transmission rights provide physical priority right to schedule over congested paths. 7. Interruptible Service Agreements. Interruptible Service Agreements with the City's Electrical customers. Currently Vernon has an Interruptible Service Agreement where the customer agrees to interrupt 12.65 MW of load within a 30 minute notification. A period of interruption can occur upon notification from the Independent System Operator (ISO) requiring the City to shed load or upon the unscheduled outage of the Malburg Generating Station ("MGS") or any other generating unit internal to the City's system. Annual and Monthly Resource Adequacy and Supply data: The CAISO Tariff requires that the scheduling coordinator of a load serving entity provide an annual and a monthly Resource Adequacy Plan (Section 40.2.2.4) using the required templates and submitted on the set schedules. Furthermore, the scheduling coordinator of a resource providing resource adequacy must submit both an annual and monthly Supply Plan (Section 40.4.7.1) using the required templates and submitted on the set schedules. Therefore, the City of Vernon as a load serving entity and a scheduling coordinator for resource adequacy resources must submit a Resource Adequacy and Supply Plan on the set schedules. Staff has prepared the Annual Resource Adequacy (Exhibit 4) and Supply data (Exhibit 5) for calendar year 2018. Staff will submit the monthly Resource Adequacy and Supply data to the CAISO as they become due. The data to be submitted on the monthly plans will be consistent with the Annual Resource Adequacy and Supply Plan and may be adjusted for seasonal variations as well as load and resource changes. The monthly plan is due to the CAISO 45 days prior to the beginning of the month. 0 Local Capacity Area Resources: In accordance with Section 40.3 of the CAISO Tariff, CAISO annually publishes a Local Capacity Technical Study that determines the amount of local capacity needed in the Los Angeles Basin area that must be available to the CAISO. Based on the Local Capacity Technical Study, the CAISO allocates responsibility for Local Capacity Area Resources to the Scheduling Coordinators of the LSEs. The CAISO validates that the Scheduling Coordinator list enough local resources in its Resource Adequacy data templates to satisfy its obligation. Staff has prepared the Resource Adequacy data templates (Exhibit 4) which lists the Resource Adequacy Resources including the Malburg Generating Station, Puente Hills Landfill Gas -To - Energy Facility and the City owned H. Gonzalez units that will be counted on to satisfy the Local Area Capacity requirement for the City of Vernon. Flexible Resource Adequacy Capacity: In accordance with Section 40.10 of the CAISO Tariff, CAISO annually conducts a study to determine the Flexible Capacity Need for the CAISO Balancing Authority Area for each month of the next calendar year and provides the results of the study to each Local Regulatory Authority in the CAISO Balancing Authority Area. Flexible resources are resources with the potential to ramp up and down quickly and have the capability to start and shut down multiple times per day. The need for flexible capacity is a result of the CAISO managing a greener grid. The increase of variable energy resources and distributed generation has presented significant challenges to grid reliability. These types of resources are projected to continue to increase in the future which will create an increase in supply and load variability and unpredictability within the CAISO system. In order for the CAISO to efficiently operate the grid, it needs measures to ensure that flexible resources are economically bid into the CAISO markets and as a result optimally dispatch them. The CAISO study calculates the total system amount of Flexible Capacity needed for each of the three Flexible Capacity Categories. The three categories are: (1) base ramping flexibility; (2) peak ramping flexibility; and (3) super -peak ramping flexibility. Section 40.10.3 of the CAISO Tariff sets the criteria needed by resources to qualify for each category. For the Calendar Year 2018, the CAISO has determined the system -wide Flexible Capacity needs and 7 has notified each LSE their monthly requirement. Exhibit 6 lists the City's Flexible Capacity requirement by month and category. Furthermore, the CAISO has established the Effective Flexible Capacity for each resource and the category of Flexible Capacity each will qualify for the upcoming compliance year. For Calendar Year 2018, the CAISO has established 78 MW of category 1 base ramping flexible resources adequacy capacity for Malburg Generating Station, and 5.75 MW category 1 base ramping flexible resource adequacy capacity for each H. Gonzales Unit (Exhibit 7). CAISO Tariff Section 40.10.5.1 requires the Scheduling Coordinators of LSEs to identify the resources it will rely on to satisfy its Flexible Resource Adequacy Capacity on both the annual and monthly Resource Adequacy data templates. Staff has prepared the Resource Adequacy data templates (Exhibit 4) which lists the Resource Adequacy Resources including the Malburg Generating Station and the City owned H. Gonzalez units that will be counted on to satisfy the Flexible Resource Adequacy Capacity requirement for the City of Vernon. Exhibit 1 5 year Sytem Peak Demand Analysis Year Peak % Inc./Dec. (A) (B) (C) 1 2013 194.0 2 2014 191.0 -1.572% 3 2015 192.3 0.717% 4 2016 189.4 -1.510% 5 2017 184.7 -2.494% 6 Average 190.3 -1.2% A Year B Source: (City Historical Sytem Peak Load Data) C % Increase/Decrease from previous year. Note: The five year system peak demand average will not be used in this year's RA Plan. It has been determined that a1.5% load decrease is appropriate for calendar 2018. Exhibit 2 January - December 2018 Projected Load Month 2016-2017 (Actual City System Peak Load) 2018 Projected System Peak Load (A) A (C) 1 January'17 174.64 172.02 2 February'17 167.20 164.69 3 March 17 170.08 167.53 4 April '17 172.52 169.93 5 May'17 168.67 166.14 6 June'17 175.39 172.76 7 July'17 177.15 174.50 8 August '17 184.07 181.31 9 September'17 174.04 171.43 October'16 182.16 179.43 L11 November'16 180.28 177.57 December'16 165.07 162.59 A Month B Source: (City Historical System Peak Load Data) C Projected Load for 2018 (1.5% load decrease is applied) Exhibit 3 January - December 2018 Resource Adequacy Requirement Month Vernon System Peak Demand Coincidental Peak Factor Coincident Peak Demand Forecast RA Capacity Requirement (A) (B) (C) (D) (E) 1 January 172.0 75.5% 129.9 149.4 2 February 164.7 78.2% 128.8 148.1 3 March 167.5 78.3% 131.2 150.9 4 April 169.9 81.3% 138.2 158.9 5 May 166.1 77.4% 128.6 147.9 6 June 172.8 84.9% 146.7 168.7 7 July 174.5 86.9% 151.6 174.4 8 August 181.3 80.4% 145.8 167.6 9 September 171.4 78.3% 134.2 154.4 10 October 179.4 78.6% 141.0 162.2 11 November 177.E 81.7% 145.1 166.8 12 December 162.E 81.3% 132.2 152.0 A Month B Source: (Exhibit 1 Column E) C Source: CEC D Product of B and C E Product of D and 115% (115% reflects Planning Reserve Margin) ��••� _ C#w0/ R �U) t �u'a o ° 00) 2 3 r o c W .2 / W -0 tm -J o &U) z \3< =<c#U) -0 /O//� % CD § i > \ �/f 00E § '\/A \\ _ C/) Cl) 'e w\/ ƒ? > / § $ 0§(A&/60g z-0a) ski 22 \ « w E $92\ LT- &G± ##E9 e�z� w \ / ■ w 5 0 N O O W m m m m m m m m m m m m m m m m m m m m m m m m O m m m m m m m m m m m m m m m O m m L0 L0 N In L0 to Lo 0N L0 L17 to to L0 0 0 N 0 L0 U7 10 0 0 Lo 0 In 0 L0 0 U) Lo L0 0 0 Lo L0 L0 m NN N 0)m m m m m m m m m� NN°N� m m m m m m Lm m m m m m m co 66to 0L0 Lo0L0L0 L0 0 M t0o 0 t0 N 0L0NLn L0L0t000 00Lo n 00) M M M M Co M M M M M M M M M M M M M N M M M M M M M MM M M &i ro M M M NNNNNNNN N N N N N N N N N N NN N N N N N N N N N N m N (N N N N N N ap O M W a0 W M O a0 a0 W W W W O O M W flD M W o O a0 0 O M O O a0 Lb ap aD O Lp Lb o O M M tb O aD O O O O O O O O O N N o O o o O O O O O O N N N O O O O O O O O O o N N o O O o o O O F \ N \ \ N N N N \ N Lb O O \ O M M o O O O M � co o O O M Co O O N M M M M\ M M N M M M\ M \Q cM N`\ M M\ M M \ N M M M M\ N (`� r o w f- 85 a � r- N c�) V In o r O o) - N M V L -) (O r W m�! 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O O O O O O O O O O O Q (� V (0 f4 f0 .Ym. f4 f0 t6 f6 f6 f6 f4 f6 � Q' Q' w w M M w M W M M M M Wwww 222 O) O O O) O D7 O) O O) O) O D1 c c c c c c c c c c c c o 0 0 0 0 0 0 0 0 0 Q Q Q •� '� •� •� 1� '� '� '@ 'm '@ '� • 5 N N N N N N N N N N N N N } } } I I I I I I I I I I I I `m t o m t d d o d U C� U O N N N N N N O N N O N N N N W W W y d y yNNNNNNN NNNNZZZ �I Q QI Q Q WI WI WI =>>>>>>>>>>> c c c c c Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z m m m m m m m m m m m m o o o 0 o W W W W W W W W W W W W W W W 2 2 2� 2 2 2 2 2 2 2 2 m m m 2 m>>>>>>>>>>>>>>> Exhibit 6 January - December 2018 Flexible RA Requirement Min. Base Flexibility Requirement Peak Flexibility Super Peak Flexibilty Total Flexible RA Requirement (A) (B) (C) (D) (E) 1 January 17.28 25.20 2.24 44.72 2 February 17.80 25.97 2.30 46.07 3 March 13.93 20.32 1.80 36.05 4 April 14.38 20.98 1.86 37.22 5 May 22.03 16.15 2.01 40.19 6 June 16.17 11.85 1.47 29.49 7 July 21.40 15.69 1.95 39.04 8 August 18.24 13.38 1.66 33.28 9 September 20.86 15.30 1.90 38.06 10 October 14.26 20.80 1.84 36.90 11 November 15.021 21.91 1.94 38.87 12 December 15.901 23.20 2.06 41.16 A Month and Year B Requirement for Category 1- Base Ramping Resources C Maximum allowed use of Category 2- Peak Flexibility D Maximum allowed use of Category 3- Super Peak Flexibility E Total Flexible RA Requirement for City of Vernon Exhibit 7 January - December 2018 Effective Flexible Capacity Effective Flexible Capacity Flexible Capacity Category (A) (B) (C) 1 Malburg Generating Station 78 1 2 H. Gonzalez 1 5.75 1 3 H. Gonzalez 2 1 5.75 1 A Designated flexible resource B Designated Effective Flexible Capacity (Qualified Flexible Capacity by each Resource) C Designated Flexible Capacity Category STAFF REPORT RECEIVED OCT 12 2017 CITY CLERK'S OFFICE OF �FR cc C+� Z °ram •� ELY LM9J STAFF REPORT q+Pn0-Z,L-J )19/,;-///-) OCT 11 2017 CITY ADMINISTRATION PUBLIC UTILITIES DEPARTMENT C16f DATE: October 17, 2017 TO: Honorable Mayor and City Council FROM: Kelly Nguyen, General Manager of Public Utilities RE: A Resolution Approving and Adopting the Resource Adequacy Plan for 2018 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. Adopt a resolution approving and adopting the Public Utilities Department Resource Adequacy Plan for 2018, which includes the peak Demand Forecast, the Planning Reserve Margin, the Qualifying Capacity Criteria and the Qualifying Capacity from such resources, City's Resource Adequacy and Supply Data and approving the resources used to satisfy the California Independent System Operator's (CAISO) tariff requirements; and C. Authorize staff to submit the Resource Adequacy Plan for 2018 and the Monthly Resource Adequacy and Supply data to the CAISO. Background The California Independent System Operator (CAISO) as the electric grid operator is responsible for maintaining a reliable electric grid. One of the keys to maintaining a reliable grid is to ensure that the electric system has adequate resources it needs to meet its electric demand. To do this the CAISO has established provisions in its Tariff that are intended to ensure that Load Serving Entities (LSE), such as the City of Vernon, will secure sufficient resources to meet their customer's energy demands. Pursuant to Section 40 of the CAISO Tariff LSEs must provide to the CAISO annually a Resource Adequacy demonstration or plan. The Resource Adequacy demonstration must include (1) a coincident peak Demand Forecast, (2) Reserve Margin, (3) Qualifying Capacity Criteria, (4) an annual and monthly Resource Adequacy and Supply data, and (5) a list of Resource Adequacy Resources that will be counted on to satisfy its Local Capacity Requirement and (6) Flexible Resource Adequacy Capacity Requirement. (1) Coincident Peak Demand Forecast: is defined as the amount of the City of Vernon's load that contributes to the CAISO system peak. This is calculated by first establishing a monthly peak demand for the upcoming year. A monthly peak demand is established by taking the latest highest metered energy demand for the month and applying the projected load growth rate. Based on staff analysis, a projected load reduction for 2018 is set at 1.5%. To establish the monthly energy demand for 2018, Staff has used the most recent 12-month highest monthly energy demand and applied a 1.5% reduction. Once the peak demand forecast is established, each monthly peak demand is multiplied by a coincident peak factor to establish the monthly coincident peak demand forecast. The coincident peak factor is calculated and provided to the City of Vernon annually by the California Energy Commission. It is the percentage of the City of Vernon's energy demand at the time of the CAISO system's peak demand. Mathematically, the Coincident Peak Demand Forecast for 2018 is equal to the peak demand forecast and multiplied by the coincident peak demand factor. (2) Reserve Margin: is defined as the amount of Resource Adequacy Capacity that an LSE must maintain above its coincident peak Demand Forecast. Pursuant to the CAISO Tariff, a LSE must establish a Reserve Margin of no less than 15%. Historically the City of Vernon has established its Reserve Margin at 15%. (3) Qualifying Capacity Criteria: a Load Serving Entity must provide the CAISO with a description of the criteria that will be used to determine the type of resources that can be used to meet its capacity obligation and the amount of capacity (Qualifying Capacity) from such resources. The City of Vernon has elected to use the following resources to meet its capacity needs and the qualifying capacity from each of them. a) Power supply contract/s entered through WSPP Agreement (MRTU Amendment) and defined as any SC -to -SC traded product for which an IST (Inter -SC Trades) can be submitted to the CAISO. b) Vernon Purchase Power Contract with SCPPA for SCPPA's share of the Palo Verde Generating Station. The qualified capacity shall be 4.9% of SCPPA share of the Palo Verde Generating Station. c) The contract between the United States Department of Energy Western Area Power Administration Boulder Canyon Project and the City of Vernon. The Qualifying Capacity will be based on the most current schedule for the available capacity from the Boulder Canyon Project. d) The generating units and system units within the City of Vernon's electric system. The amount of qualifying capacity of such units will be based on the projected dependable gross output capacity on a day when the ambient air temperature is 90 degrees Fahrenheit. e) Long term power purchase contracts of 5 years or more. The Qualifying Capacity bill be based on the City of Vernon's percentage share of the contracted capacity quantity. f) Capacity from a Participating Generator, System Unit or a System Resource as defined in the CAISO Tariff. g) Interruptible Service agreements between the City of Vernon and its electrical customers. The qualifying capacity will be based on the contracted amount the electrical customer has agreed to interrupt either by a request from CAISO or upon an unscheduled outage of the Malburg Generating Station or any other generating unit internal to the City's electric system. (4) Annual and monthly Resource Adequacy and Supply data: each annual and monthly Resource Adequacy and Supply data must be submitted to the CAISO on the established templates and on the set schedule dates. The Resource Adequacy data templates shall identify all of the qualified resources committed to meet the City's resource adequacy obligations and the adopted Reserve Margin. The Supply data templates list only those resources that the City owns or is responsible for scheduling with the CAISO. Monthly Resource Adequacy and Supply data templates will be consistent with the data submitted in the Annual Resource Adequacy and Supply data templates and may be adjusted for seasonal variations in the City's load or changes in its contracted/owned resources. (5) Local Capacity Requirement: On an annual basis the CAISO publishes a technical study that determines the amount of capacity resources needed in the Los Angeles Basin area that must be available to the CAISO. Based on this study the CAISO allocates the amount of local capacity the City of Vernon must make available each month. The City of Vernon must then include in the CAISO approved Resource Adequacy data templates the resources that will meet its Local Capacity Requirement. (6) Flexible Resource Adequacy Capacity Requirement: On an annual basis the CAISO conducts and publishes the results of a study that determines the Flexible Capacity Need for the CAISO Balancing Authority Area. The need for flexible capacity is a result of the CAISO managing a greener grid. The increase of variable energy resources and distributed generation has presented significant challenges to grid reliability. The CAISO determines and allocates the flexible resource adequacy requirement to each LSE. The tariff requires LSEs to have sufficient resources that could ramp up and down quickly and have the potential to start and shut down multiple times per day i.e. flexible capacity. LSEs are required to include both an annual and monthly Flexible Resource Adequacy capacity showings in the Resource Adequacy data template. The City of Vernon must then include in its Resource Adequacy Plan the list of Flexible Resource Adequacy resources that will meet its requirement. These resources must be listed and submitted to the CAISO in the approved Resource Adequacy data template. Consistent with the CAISO Tariff requirements, Staff has prepared the City of Vernon Public Utilities Department's Resource Adequacy Plan for 2018 for City Council approval. Fiscal Impact There is no known fiscal impact. Attachments 1. Proposed Resolution Approving and Adopting the Resource Adequacy Plan for 2018 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND ADOPTING THE VERNON PUBLIC UTILITIES DEPARTMENT RESOURCE ADEQUACY PLAN FOR 2018, WHICH INCLUDES THE PEAK DEMAND FORECAST, THE PLANNING RESERVE MARGIN, THE QUALIFYING CAPACITY CRITERIA AND THE QUALIFYING CAPACITY FROM SUCH RESOURCES, CITY'S RESOURCE ADEQUACY AND SUPPLY DATA AND APPROVES THE RESOURCES USED TO SATISFY THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR'S TARIFF REQUIREMENTS 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 has executed a Metered Subsystem Agreement ("MSS Agreement") with the California Independent System Operator ("CAISO"); and WHEREAS, the City is considered a Load Serving Entity ("LSE") under certain terms of the CAISO's Tariff ("Tariff"); and WHEREAS, the Tariff requires each LSE to establish and submit to CAISO an annual Resource Adequacy Plan, which includes a peak Demand Forecast, a Reserve Margin, Qualifying Capacity Criteria, and a Supply Plan; and WHEREAS, the Tariff requires each LSE to submit monthly Resource Adequacy Plans and Supply Plans; and WHEREAS, the City has reviewed the historical and expected demand for and supplies of electricity within its distribution system, including the likely peak demand for electricity within the City's distribution system throughout 2018, the available generation and other capacity to serve that demand, and constraints which might impact the availability of capacity to serve the City's projected peak demand; and WHEREAS, based upon that review, the City finds that the peak demand for electricity within the City's distribution system throughout 2018 is likely to experience load growth of approximately 0% as compared to the same months of the prior year; and WHEREAS, based upon that review, the City finds that the default 15% Reserve Margin set forth in the Resource Adequacy provisions of the MRTU Tariff is sufficient for planning purposes; and WHEREAS, based upon that review, the City finds that the Qualifying Capacity Criteria specified in the City of Vernon Demand Forecast for 2018, Planning Reserve Margin, Qualifying Capacity Criteria and Annual Resource Adequacy and Supply Plan are sufficient and appropriate to be used in determining the amount of Qualifying Capacity needed to meet the City's projected peak monthly demand and 15% Reserve Margin. 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 above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA), because it is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" under CEQA Guidelines section 15378; and SECTION 3: The City Council of the City of Vernon hereby approves and adopts the Public Utilities Department Resource Adequacy Plan for Calendar Year 2018 (the "Annual Resource Adequacy Plan"), which - 2 - includes the peak Demand Forecast, the Planning Reserve Margin, the Qualifying Capacity Criteria and the Qualifying Capacity from such resources, the annual Resource Adequacy and Supply data, and the Resource Adequacy resources that will be used to satisfy the City's Local Capacity Requirement for 2018, which is attached hereto as Exhibit A. SECTION 4: 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 APPR VED AS TO FORM: ti Brian Byun, Senior Deput City Attorney - 3 - Name: Title: Mayor / Mayor Pro-Tem STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, , 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) - 4 - City Clerk / Deputy City Clerk EXHIBIT A City of Vernon Public Utilities Department Resource Adequacy Plan Calendar Year 2018 Background: The Resource Adequacy provisions of the CAISO's Tariff require the Scheduling Coordinator ("SC") of a Load Serving Entity ("LSE") such as the City of Vernon to establish and submit the following information upon approval from its Local Regulatory Authority. (1) a Coincident Peak Demand Forecast for its load, (2) a Reserve Margin used for planning purposes, (3) the Qualifying Capacity Criteria that will be used for determining qualifying resource types and the Qualifying Capacity from such resources, (4) an annual and monthly Resource Adequacy and Supply data, and (5) a list of the resource that will be used to satisfy the LSE's Local Capacity Requirement and Flexible Resource Adequacy Capacity Requirement showing. Staff has prepared this "City of Vernon Public Utilities Department Resource Adequacy Plan for Calendar Year 2018 consistent with the CAISO Tariff requirements. The following is a discussion of each of the CAISO Tariff requirements and how the City will meet each requirement. Coincident Peak Demand Forecast: Vernon's municipal load resides within the CAISO control area. The CAISO, as the balancing authority, has the responsibility for meeting reliability criteria established by the Western Electricity Coordinating Council ("WECC"). As such the CAISO has entered into agreements with various market participants including, but not limited to, Generators, Scheduling Coordinators, Participating Transmission Owners, Utility Distribution Companies, and Metered Subsystems ("MSS"), which impose certain responsibilities on parties to establish a reliable system. One of those responsibilities is to have operating reserves that meet the WECC minimum requirements. The CAISO's goal in considering reserve requirements is to balance available capacity with demand across the entire CAISO control area and, therefore, CAISO's primary concern is with the time and amount of peak demand on the CAISO-controlled transmission system (the "system peak"). In order to reduce demand during the period of the system peak (and, therefore, to lower the peak demand on the transmission system), utilities generally offer retail rate structures designed to encourage load shifting away from the on -peak period. Such efforts are intended to achieve on -peak demand reduction and lower the need to build new generation to meet peak demand. Vernon has adopted such a rate structure and has succeeded in shifting the peak demand period for Vernon's system to a time that is generally earlier than the time of the CAISO system peak. Vernon's share of needed capacity to meet CAISO control area capacity requirements may be established by determining the amount of Vernon's load that contributes to the CAISO system peak. Vernon's load that contributes to the CAISO system peak is the City of Vernon Coincident peak Demand. The process to establish Vernon's monthly coincident peak Demand Forecast consists of the following three steps: 1. Establish Monthly Vernon System Peak Demand Forecast for 2018 To establish Vernon's System peak demand forecast, Staff performs an analysis on the year to year change in the City's energy demand peaks during a five year period. Based on the results of the analysis, staff forecasts a load growth rate for the coming calendar year (Exhibit 1). This year's analysis shows that for the period between 2013 and 2017, the City of Vernon system peak demand has decreased 1.2%. Closer review of Exhibit 1 reveals that the decreases in system peak demand from 2016 to 2017 is 2.494%. Based on the current load trend and recent history of years of stagnation, Staff concluded that a 1.5% load reduction is an appropriate forecast for calendar year 2018. Exhibit 2 shows the determination of the projected system peak demand for 2018 that incorporates a 1.5% load reduction. The projected system peak demand for the City of Vernon is also shown below in Table 1. Table 1 Projected Load 2018 MW January 172.02 February 164.69 March 167.53 April 169.93 2 May 166.14 June 172.76 July 174.50 August 181.31 September 171.43 October 179.43 November 177.57 December ,162.59 2. Establish Coincidental Peak Factor The coincidental peak factor is the percentage of the City of Vernon's energy demand at the time of the CAISO system peak demand. As set forth in Section 40 of the CAISO Tariff, the coincidental peak factor for each month has been calculated and provided to the City annually by the California Energy Commission (CEC). The monthly coincidental peak factor is shown in column C of Exhibit 3. 3. Calculate Monthly Coincident Peak Demand Forecast The City of Vernon's Coincident Peak Demand forecast is calculated as the mathematical product of the City of Vernon's forecasted System peak demand and the coincidental peak factor. This reflects the City of Vernon's projected demand at the time of the CAISO system peak demand for each month. The monthly coincident peak Demand Forecast is calculated and listed in column D of Exhibit 3 for the period of January through December 2018. It is also shown below in Table 2. Table 2 Demand Forecast 2017 MW January 129.9 February 128.8 March 131.2 April 138.2 May 128.6 3 June 146.7 July 151.6 August 145.8 September 134.2 October 141.0 November 145.1 December 132.2 Reserve Martin for Planning Purposes The Reserve Margin is the amount of Resource Adequacy Capacity that an LSE must maintain above its coincident peak Demand Forecast. Historically, the City of Vernon has established its Reserve Margin at 15%. Staff has recommended that the City Council maintain the Reserve Margin at 15% for planning purposes. The 15% Reserve Margin was used to establish the monthly Resource Adequacy obligation for the City of Vernon. The monthly Resource Adequacy obligation is listed in column E of Exhibit 3. Oualifyin Capacity: A Load Serving Entity must provide the CAISO with a description of the criteria that will be used to determine the type of resources that can be used to meet its capacity obligation and the amount of capacity (Qualifying Capacity) from such resources. Historically Vernon has used the following criterion to determine whether a resource qualifies: It qualifies if Vernon has a contractual right to the power or has an interruptible service agreement with a customer. The six following resources are among those that meet this criterion and provide Qualifying Capacity. The calculation for the amount of Qualifying Capacity the six eligible resource types follows: 1. CAISO 1ST -enabled Product. Power supply contract/s entered through WSPP Agreement (MRTU Amendment) and defined as any SC -to -SC traded product for which an IST (Inter -SC Trades) can be submitted and for which CAISO will make payment or issue an invoice, including Energy, Tier I IFM Bid Cost Recovery 0 Obligations and Ancillary Service Obligation trades, as each defined in the Tariff. 2. Palo Verde. Vernon Purchase Power Contract with SCPPA for 4.9% of SCPPA's share of Palo Verde Nuclear Generating Station (Palo Verde) shall be eligible as Qualifying Capacity. The power is scheduled as an import generally at Westwing Substation through the CAISO's entitlement of transmission from Westwing to SP-15. 3. Boulder Canyon. Contract NO 16-DSR-12650 between United States Department of Energy Western Area Power Administration Boulder Canyon Project and City of Vernon, California for Electric Service shall be eligible to count as Qualifying Capacity. The power is scheduled as an import at Mead Substation generally through the CAISO's entitlement of transmission from Mead Substation to SP-15. The amount of Qualifying Capacity will be based on the most current schedule for the available capacity from the Boulder Canyon Project at the time of submittal of the Resource Adequacy Plan. 4. Vernon Units. Generating units and system units (but excluding Vernon diesel generating units) within Vernon's MSS including the Malburg Generating Station and the City owned H. Gonzalez units, as reflected in Schedule 14 of Vernon's MSS Agreement with CAISO shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity of such units will be based on the projected dependable gross output capacity on a day when the ambient air temperature is 90 degrees Fahrenheit. 5. Long Term Power Purchase Contracts. Long term power supply contracts (5 years or more) entered through a power purchase agreement shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity will be based on the City of Vernon's percentage share of the contracted capacity quantity. For the upcoming year, the following contracts will count as Qualifying Capacity, Antelope DSR 1 Solar Project, Astoria 2 Solar Project and Puente Hills Landfill Gas -To -Energy Facility. 5 6. Other Units. All other capacity from a Participating Generator, a System Unit, or a System Resource, as defined in the CAISO Tariff, shall be eligible as Qualifying Capacity. System Resources, however, must have a firm transmission path from source to the CAISO control area. Such criteria for firm transmission facilities over the CAISO control area can be satisfied with the possession of a firm transmission right from the CAISO on the path associated with the System Resource. Firm transmission rights provide physical priority right to schedule over congested paths. 7. Interruptible Service Agreements. Interruptible Service Agreements with the City's Electrical customers. Currently Vernon has an Interruptible Service Agreement where the customer agrees to interrupt 12.65 MW of load within a 30 minute notification. A period of interruption can occur upon notification from the Independent System Operator (ISO) requiring the City to shed load or upon the unscheduled outage of the Malburg Generating Station ("MGS") or any other generating unit internal to the City's system. Annual and Monthly Resource Adequacy and Supply data: The CAISO Tariff requires that the scheduling coordinator of a load serving entity provide an annual and a monthly Resource Adequacy Plan (Section 40.2.2.4) using the required templates and submitted on the set schedules. Furthermore, the scheduling coordinator of a resource providing resource adequacy must submit both an annual and monthly Supply Plan (Section 40.4.7.1) using the required templates and submitted on the set schedules. Therefore, the City of Vernon as a load serving entity and a scheduling coordinator for resource adequacy resources must submit a Resource Adequacy and Supply Plan on the set schedules. Staff has prepared the Annual Resource Adequacy (Exhibit 4) and Supply data (Exhibit 5) for calendar year 2018. Staff will submit the monthly Resource Adequacy and Supply data to the CAISO as they become due. The data to be submitted on the monthly plans will be consistent with the Annual Resource Adequacy and Supply Plan and may be adjusted for seasonal variations as well as load and resource changes. The monthly plan is due to the CAISO 45 days prior to the beginning of the month. in, Local Capacity Area Resources: In accordance with Section 40.3 of the CAISO Tariff, CAISO annually publishes a Local Capacity Technical Study that determines the amount of local capacity needed in the Los Angeles Basin area that must be available to the CAISO. Based on the Local Capacity Technical Study, the CAISO allocates responsibility for Local Capacity Area Resources to the Scheduling Coordinators of the LSEs. The CAISO validates that the Scheduling Coordinator list enough local resources in its Resource Adequacy data templates to satisfy its obligation. Staff has prepared the Resource Adequacy data templates (Exhibit 4) which lists the Resource Adequacy Resources including the Malburg Generating Station, Puente Hills Landfill Gas -To - Energy Facility and the City owned H. Gonzalez units that will be counted on to satisfy the Local Area Capacity requirement for the City of Vernon. Flexible Resource Adequacy Capacity: In accordance with Section 40.10 of the CAISO Tariff, CAISO annually conducts a study to determine the Flexible Capacity Need for the CAISO Balancing Authority Area for each month of the next calendar year and provides the results of the study to each Local Regulatory Authority in the CAISO Balancing Authority Area. Flexible resources are resources with the potential to ramp up and down quickly and have the capability to start and shut down multiple times per day. The need for flexible capacity is a result of the CAISO managing a greener grid. The increase of variable energy resources and distributed generation has presented significant challenges to grid reliability. These types of resources are projected to continue to increase in the future which will create an increase in supply and load variability and unpredictability within the CAISO system. In order for the CAISO to efficiently operate the grid, it needs measures to ensure that flexible resources are economically bid into the CAISO markets and as a result optimally dispatch them. The CAISO study calculates the total system amount of Flexible Capacity needed for each of the three Flexible Capacity Categories. The three categories are: (1) base ramping flexibility; (2) peak ramping flexibility; and (3) super -peak ramping flexibility. Section 40.10.3 of the CAISO Tariff sets the criteria needed by resources to qualify for each category. For the Calendar Year 2018, the CAISO has determined the system -wide Flexible Capacity needs and 7 has notified each LSE their monthly requirement. Exhibit 6 lists the City's Flexible Capacity requirement by month and category. Furthermore, the CAISO has established the Effective Flexible Capacity for each resource and the category of Flexible Capacity each will qualify for the upcoming compliance year. For Calendar Year 2018, the CAISO has established 78 MW of category 1 base ramping flexible resources adequacy capacity for Malburg Generating Station, and 5.75 MW category 1 base ramping flexible resource adequacy capacity for each H. Gonzales Unit (Exhibit 7). CAISO Tariff Section 40.10.5.1 requires the Scheduling Coordinators of LSEs to identify the resources it will rely on to satisfy its Flexible Resource Adequacy Capacity on both the annual and monthly Resource Adequacy data templates. Staff has prepared the Resource Adequacy data templates (Exhibit 4) which lists the Resource Adequacy Resources including the Malburg Generating Station and the City owned H. Gonzalez units that will be counted on to satisfy the Flexible Resource Adequacy Capacity requirement for the City of Vernon. EV Exhibit 1 5 year Sytem Peak Demand Analysis Year Peak % Inc./Dec. (A) (B) (C) 1 2013 194.0 2 2014 191.0 -1.572% 3 2015 192.3 0.717% 4 2016 189.4 -1.510% 5 2017 184.7 -2.494% 6 Average 190.3 -1.2% A Year B Source: (City Historical Sytem Peak Load Data) C % Increase/Decrease from previous year. Note: The five year system peak demand average will not be used in this year's RA Plan. It has been determined that a1.5% load decrease is appropriate for calendar 2018. Exhibit 2 January - December 2018 Projected Load Month 2016-2017 (Actual City System Peak Load) 2018 Projected System Peak Load (A) (B) (C) 1 January '17 174.64 172.02 2 February 17 167.20 164.69 3 March '17 170.08 167.53 4 April '17 172.52 169.93 5 May '17 168.67 166.14 6 June '17 175.39 172.76 7 July'17 177.15 174.50 8 August '17 184.07 181.31 9 September 17 174.04 171.43 10 October'16 182.16 179.43 11 November'16 180.281 177.57 12 December'16 165.071 162.59 A Month B Source: (City Historical System Peak Load Data) C Projected Load for 2018 (1.5% load decrease is applied) Exhibit 3 January - December 2018 Resource Adequacy Requirement Month Vernon System Peak Demand Coincidental Peak Factor Coincident Peak Demand Forecast RA Capacity Requirement (A) (B) (C) (D) (E) 1 January 172.0 75.5% 129.9 149.4 2 February 164.7 78.2% 128.8 148.1 3 March 167.5 78.3% 131.2 150.9 4 April 169.9 81.3% 138.2 158.9 5 May 166.1 77.4% 128.6 147.9 6 June 172.8 84.9% 146.7 168.7 7 July 174.5 86.9% 151.6 174.4 8 August 181.3 80.4% 145.8 167.6 9 September 171.4 78.3% 134.2 154.4 10 October 179.4 78.6% 141.0 162.2 11 November 177.6 81.7% 145.1 166.8 12 December 162.E 81.3% 132.21 152.0 A Month B Source: (Exhibit 1 Column E) C Source: CEC D Product of B and C E Product of D and 115% (115% reflects Planning Reserve Margin) � .@ \ 3$$5±492$ E E L.L U— E J J 2 7 v 9 E E J 2��zƒ� \Z3 > ( I _ b C) o — ) §/ƒ > �6= 222 %/ ./ / C G// G \co > \ § 2 aaW&/Ea\ / P-0a) (n j 22 � < e m_ '410 3 k & 2&�ae 0 z =ui o / D / � m w y / 0 » 5 c `o w y Z O E C u0- w W O A N C as Lo � U C •� O Z O O O =cc C U •N d p ❑ ❑ ❑ ❑ ❑ O O O ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ O ❑ ❑ O ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ .d. m m m m m m m m m 01 01 � m m m m m m m m m °�' 01 01 m m m m m m m m m M M a, m m m m m m m A Ln Ln Ln LO Ln N O N W Ln Ln U) Ln Lo Ln LO LO Lo LO LO LO Ln UO Ln LO LO ui Ln LO 0 LO LO LO in «p T m m m m m m m m m N ol m m m m m m m m m N N 0) m m m m m m m m m 0 a) m m m m m m m u) n n Ln O LO LO LO mLO Ln L0 Ln LO m Ln n n n 0 U) n Ln Ln Ln Ln n N 0 Ln Ln n LO Ln LO V y M Co C) CM M M M M M M CO M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M WC T N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N W W W W W W W W W W Lp d £ W W W W W N W co co WV � W 10 O0 W W W W O0 W W W W W W W W W W U Q w> E S NO ON ON NO ON O O O E; NM N N NLO ON O ON ON ON O ON N N NNNNN ON OM OM MO OM OO O N N O NNN NNNNNN N N O Ooo O O co O O O ` N M 'M Q ` M Mm ` NMM M M N m V M Ln W r m m N M V D ZB 1� oD m N M R n W r a0 W C N M C LA LD iz: O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 O 0 O O O O O O O O O O « p O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O •V t'. y O O O O O O O O O 9? 9 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O u LO !� O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O_ N •a O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O U O L W W W W W W WN W.--i W W W W W W W W W W W W W W W W W W W W W W W W W W W W W 00 W W W .--� >_ E t o 0 0 0 0 0 0 0 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 U N N N \ \ \ \ \ \ \ N - 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r r r N N r V CO CO I-- O O W M w M W v i m M't N m M M Cl) tYR'�R'Q'��R2'lZ'�2'JJJJJQ'�d'tY2'�22'1Y�2'�Rtz'� m Lb CD CO m m m m m m m m N N N N N m m m m m m m m m m LT] m m fYl m J J J J J J J J J J J J Z Z Z Z Z J J J J J J J J J J J J J J J Q N N N N N N N N N N N 0 0 0 0 0 N N N N N N N N N N N N N N N �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I �I TI COI coI co DI C co co COI co(D C cc co (I CI 0I �I CI col col co co (D co (0 co ID �I co (c zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz 00000000000000000000000000000000 zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz ofwwIrwwww=ww=mow=OfwwOfwwwwwQ� 0�wwXwmcl� wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2auv 000 N N N c c c c c c c c c c c c 0 0 0 0 0 0 0 0 0 0 0 0 0 0 U m m m m m m m m m m m is E E= C� Cn Cn Cn Cn Cn Cn Cn Cn to Cn C3 co 00 00 co m m co 00 w w w w LLJ LU W c c c c c c c c c c c c o 0 0 0 0 0 0 0 0 0 0 o N N N 76 N N N N N N N N N N N N}}} m% m m I I I I I I I I I I I m m c c N N c c N N N N N N N N N N N N N N N N U' W U` N m m N N CD N N N m N N N N N N N N N N N N N NN N_ N N W W W (�(�(�(�()(J (�(,�()(�()() O O N y O NNNNNNNNNNNNZZZ N NI NI NI NI NI NI NI NI NI NI NI NI WI WI WI > 7 7 7 3 7 7 D 7 7>> c c c c c Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z �2aa.2.caaaaa.na 0 O 0 0 0XWQ'- r�XXIK=XErXXXX m m m m m m m m m m m m 0 (D (D 0 (D W W W LU W W W w W W UJ W W LU LU 2 2 2 2 2 2 2 2 2 2 2 2 2 S 2 2 2>>>>>>>>>>>>>>> Exhibit 6 January - December 2018 Flexible RA Requirement Min. Base Flexibility Requirement Peak Flexibility Super Peak Flexibilty Total Flexible RA Requirement (A) (B) (C) (D) (E) 1 January 17.28 25.20 2.24 44.72 2 February 17.80 25.97 2.30 46.07 3 March 13.93 20.32 1.80 36.05 4 April 14.38 20.98 1.86 37.22 5 May 22.03 16.15 2.01 40.19 6 June 16.17 11.85 1.47 29.49 7 July 21.40 15.69 1.95 39.04 8 August 18.24 13.38 1.66 33.28 9 September 20.86 15.30 1.90 38.06 10 October 14.26 20.80 1.84 36.90 11 November 15.02 21.91 1.94 38.87 12 December 15.90 23.20 2.06 41.16 A Month and Year B Requirement for Category 1- Base Ramping Resources C Maximum allowed use of Category 2- Peak Flexibility D Maximum allowed use of Category 3- Super Peak Flexibility E Total Flexible RA Requirement for City of Vernon Exhibit 7 January - December 2018 Effective Flexible Capacity Effective Flexible Capacity Flexible Capacity Category (A) (B) (C) 1 Malburg Generating Station 78 1 2 H. Gonzalez 1 5.75 1 3 H. Gonzalez 2 5.751 1 A Designated flexible resource B Designated Effective Flexible Capacity (Qualified Flexible Capacity by each Resource) C Designated Flexible Capacity Category