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Resolution No. 2018-036RESOLUTION NO. 2018-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING A TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR 2019 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 September 20, 2018, notifying all interested parties that a hearing to consider evidence to establish the City's new TRBAA for 2019 was scheduled for October 16, 2018, at approximately 9:00 a.m., subject to the hearing being continued or adjourned to a stated time and place without further notice of public hearing; and WHEREAS, a Public Hearing was held on October 16, 2018, 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 16, 2018 ("Report"), which determines the new TRBAA for 2019 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, 2019; 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 CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby - 2 - 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 does not constitute a "project" pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act ("CEQA"), because such action constitutes an administrative activity; and even if the adoption of the proposed item did constitute a project, it would be exempt in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. 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 2019 and an amended Appendix I to the TO Tariff implementing the new TRBAA for 2019, 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, 2019, the establishment of the City's new TRBAA for 2019, and revised Appendix I to the TO Tariff implementing the new TRBAA for 2019, 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 2019, 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 of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 1p day of ctobe 2018. Name: Yvette Woodruff -Perez ATTEST: Maria E. Ayala,aity Clerk APP VED AS TO FORM: L Katharine Mape , Esq. Spiegel & McDiarmid, LLP Special Counsel to City Title: Mavor - 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. 2018-36, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, October 16, 2018, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this �OAday of October, 2018, at Vernon, California. (SEAL) Mar a E. yal& City Clerk - 5 - EXHIBIT A APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $ 4�, 46,805 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: $�,388,720 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($,417,712) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($,12,683) 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 $ 1 176 for calendar year 201�2. 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. Delete Delete Delete Delete Delete APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $2,446,805 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: $2,388,720 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($417,712) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($22,683) 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 $21,176 for calendar year 2019. 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 2019 October 16, 2018 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 2019 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, 2019 is shown in Exhibit 1. It shows that the balance in the Vernon TRBA as of TRBAA Report 2019 Page 3 of 5 September 30, 2018, which reflects services rendered through June 30, 2018, is a credit of $18,078, including interest. TRCs are projected to be a credit of $3,098. Taken together, these items sum up to a TRBAA to be effective for the twelve months starting January 1, 2019 of a credit, or negative, balance of $21,176. 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 $18,078 as of September 30, 2018 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, 2017and ending September 30, 2018. A summary of the determination of the September 30, 2018 balance in the Vernon TRBA is shown in Exhibit 2. The TRCT component reflects 1) the previously projected 2017 TRCs for Vernon of $47,616 or $3,968 per month, for the months October through December 2017, and 2) projected 2018 TRCs of $38,427 or $3,202 per month, for the months January through September 2018—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 2019 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, 2018 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, 2018. 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 2019. These forecast TRCs reflect projected wheeling revenues. Wheeling revenues, which correspond to ISO Charge Type 384, are projected to be a credit of $3,098.16, as shown in Exhibit 3 These projections are based on the accruals for services provided during the twelve- month period ending June 30, 2018, which are reflected in the ISO's invoices to Vernon through September 30, 2018. A summary of the monthly accruals for the twelve months ending September 30, 2018 is shown in Exhibit 4. TRBAA Report 2019 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, 2016 through December 31, 2017. In particular, Vernon received $52.34 in the month of May 2018 and 8,543.55 in the month of September 2018 for projects withdrawn from January 1, 2016 through December 31, 2017. In order to distribute those funds to its ratepayers through its TRBAA mechanism in accordance with Section 7.6 (c) of Appendix DD, Vernon includes Line 4 in 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 $21,176, 2. Approve replacing the existing TRBAA of negative $38,427 with the new TRBAA for 2019 of a negative $21,176. 3. Approve the attached revised Appendix I of Vernon's TO Tariff reflecting the TRBAA of negative $21,176. 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 2019 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 2019 6 7 DESCRIPTION TOTAL 8 9 [1] Balance in TRBA on September 30, 2018 ($18,078) 10 including interest 11 12 [2] Forecast Transmission Revenue Credits ($3,098) 13 14 1 [3] TRBAA ($21,176) Source: [4] Exhibit 2, Column O, Line No.13. [5] Exhibit 3, Column F, Line No.13. 26 27 28 29 30 31 35 36 37 38 39 ° $k ¢© k k K t ¢ t \ Q a a \ k (�k § k§ Z ui . $ q f � R k K 11. z . . . - G } ® S. } q 1�£ ; 2 - ` C5r < k ® IN \\) ( 0 z I q No a R _(§) S� ` E-E » § § IN } § ` 2 `© R N \ o ( | § | 5 6 # ! - � E ® }m i \k ° )§ ! |[ �) \ ) - !§§ \ ) w ° § ! < / F7F�F [FT\ Ww \/\ \ EE E \ � TRBAA Report 2019 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-19 February-19 March-19 April-19 May-19 June-19 July-19 August-19 September-19 October-19 November-19 December-19 Total CITY OF VERNON FORECAST TRANSMISSION CREDITS for Calendar Year 2019 TRBAA Wheeling Total ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) 258.18 258.18 ($3,098.16) ($3,098.16) 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 2019 Exhibit 4 A B I C I D I E IFIGI H I I 1 [1] [2] (3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] Vernon Historical Transmission Credits for Calendar Year 2019 TRBAA Wheeling Revenues ISO INVOICE Month CT 384 Final Adjustments July-17 ($1,480.16) August-17 ($708.39) September-17 ($247.29) October-17 ($71.82) November-17 ($63.27) December-17 ($70.24) January-18 ($146.06) February-18 ($62.11) March-18 ($6T78) April-18 ($73.34) May-18 ($107.70) June-18 $0.00 Total ($1,480.16) ($708.39) ($247.29) ($71.82) ($63.27) ($70.24) ($146.06) ($62.11) ($67.78) ($73.34) ($107.70) $0.00 ($3.098.16) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TRANSMITTAL COMMUNICATION CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: October 24, 2018 TO: Kelly Nguyen, General Manager of Public Utilities FROM: Deborah Juarez, Records Management Assistant RE: Resolution No. 2018-36 — A Resolution of the City Council of the City of Vernon Establishing a Transmission Revenue Balancing Account Adjustment for 2019 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. 2018-36 referenced above, which was approved by City Council on October 16, 2018, 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 c: Abraham Alemu Resolution No. 2018-36 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. 2018-36 - A Resolution of the City Council of the City of Vernon Establishing a Transmission Revenue Balancing Account Adjustment for 2019 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 Z day of October 2018. SEAL: Maria E. Ayala City Clerk 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 Public Utilities Department Staff Report Regarding the Establishment of a New Transmission Revenue Balancing Account Adjustment for Calendar Year 2019," 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. Kelly Ngu en 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 10/17/2018 before me, Elizabeth Zepeda, 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(&} whose namef 4 is/ar-e subscribed to the within instrument and acknowledged to me that-hefshe/t+&T executed the same in44s/her/their authorized capacity(ie4, and that by his/her/tkoir signature(&) on the instrument the person(-s'), or the entity upon behalf of which the person(&) 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 my hand and official seal ELIZABETH ZFE- = COMM. #2189135 0 NOTARY PUBLICCALIFORNIA 11 =I MyCoomn Epees Mar.31, 2021 s City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 — Telephone (323) 583-8811 STAFF REPORT City Council Agenda Item Report Agenda Item No. COV-336-2018 Submitted by: Abraham Alemu Submitting Department: Public Utilities Meeting Date: October 16, 2018 SUBJECT A Resolution Adopting a New Transmission Revenue Requirement for 2019 in Accordance with Vernods Transmission Owner Tariff and Providing for Tariff Sheet Changes to Implement the Adjustment Recommendation: A. Find that approval of this action does not constitute a "project" pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act ("CEQA'), because such action constitutes an administrative activity; and even if the adoption of the proposed item did constitute a project, it would be exempt in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Conduct a Public Hearing; and C. Adopt a resolution adopting a new transmission revenue requirement for 2019 in accordance with Vernon!s Transmission Owner Tariff and providing for Tariff Sheet changes to implement the adjustment. Backgroud: 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. These calculations are known as Transmission Revenue Requirements (` TRRs'). The relationship between PTOs and the ISO is governed by a Transmission Control Agreement ('TCA'), which sets forth specific duties and obligations of all PTOs. The TCA requires all PTOs to file a Transmission Owner Tariff(`70 Tariff ) and TRR with the Federal Energy Regulatory Commission ("FERC'). The TCA further requires all PTOs to file any changes in their TRRs with FERC. Each PTO must also include in its TO Tariff its Gross Load which the ISO uses to calculate its grid -wide Transmission Access Charge ("TAC') rates, and which is related to the City's ability to recover its fiill TRR. TRANSMISSION REVENUE REQUIREMENT At present, the City's high voltage transmission assets consist of three long-term contracts (known as "existing transmission contracts" or "ETCs') which provide the City with dedicated access to high voltage transmission facilities owned by other entities. Specifically, the City has contractual entitlements to utilize transmission assets pursuant to one long-term transmission contract with the Los Angeles Department of Water and Power ("LADWP') and two long-term transmission contracts with Southern California Edison ("SCE'). The ETCs with SCE consist of one (the "SCE Victorville-Lugo ETC" described in SCE's FERC Rate Schedule 360) providing 11 MW of transmission capacity along the path between the Victorville- Lugo midpoint and the point of interconnection with the City's internal transmission system (the "City Gate"), and one (the "SCE Mead ETC" described in SCE's FERC Rate Schedule 207) providing 26 MW of transmission capacity along the path between the Mead 230 substation and the City Gate. The costs of these ETCs make up the majority of the costs recovered through the City's TRR. Until recently, for each of the ETCs, the City paid the owner of the transmission facilities a fixed rate which was specific to the transmission path provided under each ETC. The attached TRR Report supports the establishment of a new transmission revenue requirement associated with Vernon's high voltage entitlements. Fiscal Impact: The cost of Existing Transmission Service Contracts (ETC) incurred by the City will be recovered. ATTACHMENTS • 1. Notice of Public Hearing to Establish Transmission Revenue Requirement • 2. Resolution Adopting New TRR 2019.pdf 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 16, 2018, 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 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 2019 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 from October 4, 2018 through October 16, 2018. 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 AALcmu,c 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: September 13, 2018 Matthew Ceballos, Deputy City Clerk CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Mailing Address: 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com MATTHEW CEBALLOS CITY OF VERNON CITY CLERK 4305 SANTA FE AVE VERNON, CA 90058 COPY OF NOTICE Notice Type: GPN GOVT PUBLIC NOTICE Ad Description NOTICE OF TWO SEPARATE PUBLIC HEARINGS REGARDING THE ESTABLISHMENT OF VERNON'S NEW TRANSMISSION REVENUE BALANCING To the right is a copy of the notice you sent to us for publication in the HUNTINGTON PARK BULLETIN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): 09/20/2018 An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. VIIWIIVIIIN�tll�lll�lllfllllmll�lllmll�ll�ll�ll�l ICI PRE# 3174920 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 16, 2018, 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 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 2019 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 from October 4, 2018 through October 16, 2018. 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(aDci.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. Dated: September 13, 2018 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING A TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR 2019 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 September 20, 2018, notifying all interested parties that a hearing to consider evidence to establish the City's new TRBAA for 2019 was scheduled for October 16, 2018, at approximately 9:00 a.m., subject to the hearing being continued or adjourned to a stated time and place without further notice of public hearing; and WHEREAS, a Public Hearing was held on October 16, 2018, 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 16, 2018 ("Report"), which determines the new TRBAA for 2019 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, 2019; 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 CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby - 2 - 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 does not constitute a "project" pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act ("CEQA"), because such action constitutes an administrative activity; and even if the adoption of the proposed item did constitute a project, it would be exempt in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. 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 2019 and an amended Appendix I to the TO Tariff implementing the new TRBAA for 2019, 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, 2019, the establishment of the City's new TRBAA for 2019, and revised Appendix I to the TO Tariff implementing the new TRBAA for 2019, 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 2019, 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 of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of October, 2018. ATTEST: Maria E. Ayala, City Clerk APP ..VED AS TO FORM: Katharine Mapes-,J Esq. Spiegel & McDiarmid, LLP Special Counsel to City Name: Title: Mavor - 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. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, October 16, 2018, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of October, 2018, at Vernon, California. (SEAL) - 5 - Maria E. Ayala, City Clerk APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $ 4.�, 46,80.5 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: $�,-3R8.720 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: (417.712) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: 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 $,21,1.76 for calendar year 2019. 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. Dele C Dele . Dele Dele Dele .. �Dele APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $2,446,805 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: $2,388,720 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($417,712) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($22,683) 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 $21,176 for calendar year 2019. 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. CITY OF VERNON PUBLIC UTILITIES DEPARTMENT REPORT REGARDING THE ESTABLSHMENT OF A NEW TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR CALENDAR YEAR 2019 October 16, 2018 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 2019 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, 2019 is shown in Exhibit 1. It shows that the balance in the Vernon TRBA as of TRBAA Report 2019 Page 3 of 5 September 30, 2018, which reflects services rendered through June 30, 2018, is a credit of $18,078, including interest. TRCs are projected to be a credit of $3,098. Taken together, these items sum up to a TRBAA to be effective for the twelve months starting January 1, 2019 of a credit, or negative, balance of $21,176. 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 $18,078 as of September 30, 2018 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, 2017and ending September 30, 2018. A summary of the determination of the September 30, 2018 balance in the Vernon TRBA is shown in Exhibit 2. The TRCT component reflects 1) the previously projected 2017 TRCs for Vernon of $47,616 or $3,968 per month, for the months October through December 2017, and 2) projected 2018 TRCs of $38,427 or $3,202 per month, for the months January through September 2018—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 2019 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, 2018 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, 2018. 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 2019. These forecast TRCs reflect projected wheeling revenues. Wheeling revenues, which correspond to ISO Charge Type 384, are projected to be a credit of $3,098.16, as shown in Exhibit 3. These projections are based on the accruals for services provided during the twelve- month period ending June 30, 2018, which are reflected in the ISO's invoices to Vernon through September 30, 2018. A summary of the monthly accruals for the twelve months ending September 30, 2018 is shown in Exhibit 4. TRBAA Report 2019 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, 2016 through December 31, 2017. In particular, Vernon received $52.34 in the month of May 2018 and 8,543.55 in the month of September 2018 for projects withdrawn from January 1, 2016 through December 31, 2017. In order to distribute those funds to its ratepayers through its TRBAA mechanism in accordance with Section 7.6 (c) of Appendix DD, Vernon includes Line 4 in 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 $21,176, 2. Approve replacing the existing TRBAA of negative $38,427 with the new TRBAA for 2019 of a negative $21,176. 3. Approve the attached revised Appendix I of Vernon's TO Tariff reflecting the TRBAA of negative $21,176. 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 2019 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 2019 DESCRIPTION TOTAL Balance in TRBA on September 30, 2018 ($18,078) including interest Forecast Transmission Revenue Credits ($3,098) TRBAA ($21,176) 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 O N � O W N R N ym nxF O N R pO N ON N Y� to m N d M Ili q M O N p 8 N m > D 'm aa Yc', 7g� 0 m = Z Z N N 8 ^ O h m � N W d O N OO M pp t0 N a n d V H o a m N 0=} zv O y �p N N N 8 mm O, �mp N mm O N 0 O O� N 00 8Op O N I� v�i OI uNi � CV 1p� Y•S Xi $ •� °vnNi a v W F� 8 O N Z ya p� p� ' $ e O O R 6 N �y M N N c6 H � ._. Ili U U 0 0 � g� z m � 4 Z C < IL m qn Z 5g y od i_ x TRBAA Report 2019 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-19 February-19 March-19 April-19 May-19 June-19 July-19 August-19 September-19 October-19 November-19 December-19 Total CITY OF VERNON FORECAST TRANSMISSION CREDITS for Calendar Year 2019 TRBAA Wheeling Total ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) ($258.18) 258.18 258.18 ($3,098.16) ($3,098.16) 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 2019 Exhibit 4 A B I C I D I E F G H I 1 (1] [2] [3] [4) [5] [6] [7] [8] [9) [10] [11] [12] [13] Vernon Historical Transmission Credits for Calendar Year 2019 TRBAA Wheeling Revenues ISO INVOICE Month CT 384 Final Adjustments July-17 ($1,480.16) August-17 ($708.39) September-17 ($247.29) October-17 ($71.82) November-17 ($63.27) December-17 ($70.24) January-18 ($146.06) February-18 ($62.11) March-18 ($67.78) April-18 ($73.34) May-18 ($107.70) June-18 $0.00 Total ($1,480.16) ($708.39) ($247.29) ($71.82) ($63.27) ($70.24) ($146.06) ($62.11) ($67.78) ($73.34) ($107.70) $0.00 (13,0916 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 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 16, 2018, 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 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 2019 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 from October 4, 2018 through October 16, 2018. 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 AAI. emu;a,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. Dated: September 13, 2018" Matthew Ceballos, Deputy City Clerk CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com MATTHEW CEBALLOS CITY OF VERNON CITY CLERK 4305 SANTA FE AVE VERNON, CA 90058 COPY OF NOTICE Notice Type: GPN GOVT PUBLIC NOTICE Ad Description NOTICE OF TWO SEPARATE PUBLIC HEARINGS REGARDING THE ESTABLISHMENT OF VERNON'S NEW TRANSMISSION REVENUE BALANCING To the right is a copy of the notice you sent to us for publication in the HUNTINGTON PARK BULLETIN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): 09/20/2018 An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. PRE# 3174920 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 16, 2018, 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 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 2019 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 from October 4, 2018 through October 16, 2018. 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 a(7.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. Dated: September 13, 2018 /s/ Matthew Ceballos, Deputy City Clerk 9/20118 PRE-3174920# HUNTINGTON PARK BULLETIN HUNTINGTON PARK BULLETIN 3731 WILSHIRE BLVD STE 840, LOS ANGELES, CA 90010 Telephone (323) 556-5720 / Fax (213) 835-0584 This space for filing stamp only MATTHEW CEBALLOS CITY OF VERNON CITY CLERK PRE#: 3174920 4305 SANTA FE AVE NOTICE OF TWO SEPARATE PUBLIC REGARDING THE VERNON,EARINGS ERNON, CA - 90058 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. PROOF OF PUBLICATION PLACE: Vernon City Hall City Council Chamber 4305 Santa Fe Avenue (2015,5 C.C.P.) Vernon, CA 90058 DATE & TIME: Tuesday, October 16, 2018, at State of California ) 9:00a.m.(or as soon thereafter as the matter can be d) County of LOS ANGELES ) ss PURPOSE/SUBJECT: (1) To consider evidence to establish Vernon's new Transmission Revenue Balancing Account Adjustment for its high voltage Notice Type: YP GPN - GOVT PUBLIC NOTICE (over 200 kV) transmission entitlements (all located outside the City) pursuant to Vernon's Transmission Owner Tariff, and (2) To consider evidence to establish Vernon's new Existing Ad Description: Transmission Contract Adjustment for its high NOTICE OF TWO SEPARATE PUBLIC HEARINGS voltage (over 200 kV) transmission entitlements (all located outsideCity)pursuantloVernon's Transmission OwnerrTariff. DOCUMENTS FOR REVIEW: I am a citizen of the United States and a resident of the State of California, I am copies pr a Resolution Establishing a Transmission Revenue Balancing Account over the age of eighteen years, and not a party to or interested in the above Adjustment for 2019 entitled matter. I am the principal clerk of the printer and publisher of the and a Resolution Adopting a New Transmission Revenue Requirement will be available for public HUNTINGTON PARK BULLETIN, a newspaper published in the English examination at Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California from language in the city of HUNTINGTON PARK, county of LOS ANGELES, and October 4, 2018 through October 16, 2018. adjudged a newspaper of general circulation as defined by the laws of the State Please send your comments or questions to: California by the Superior Court of the County of LOS ANGELES, State of Abraham Alemu of California, under date 06/14/1943, Case No. 485073. That the notice, of which 43City of Vernon, Public es 05 Santa Fe Avenue, Vernon,l CA 90058 the annexed is a printed copy, has been published in each regular and entire (323) 583-8811 Ext. 250 issue of said newspaper and not in any supplement thereof on the following AALemuk�ci vernon.ca.us dates, to -wit: 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 09/20/2018 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. Executed on: 09/20/2018 At Los Angeles, California Americans with Disabilities Act In compliance with ADA, if you needd special assistance to participate in the meeting, please I certify (or declare) under penalty of perjury that the foregoing is true and contact the Office of the City Clerk at (323) 583- 8811 ext. 546, correct. 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: September 13, 2018 LiL Signature IIIIIII IIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII A 0 0 0 0 0 4 8 6 8 7 4 9 Email * Matthew Ceballos, Deputy City Clerk 9/20/18 PRE3174920# HUNTINGTON PARK BULLETIN