Resolution No. 2019-047RESOLUTION NO. 2019-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND ADOPTING THE VERNON PUBLIC
UTILITIES DEPARTMENT RESOURCE ADEQUACY PLAN FOR
2020, WHICH INCLUDES THE COINCIDENT 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 coincident
peak Demand Forecast, a Planning 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 2020, 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
2020 is likely to experience load reduction of approximately 2.0% 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
Projected Load forecast specified in the City of Vernon Demand Forecast
for 2020, Planning Reserve Margin, Qualifying Capacity Criteria are
sufficient and appropriate to be used in determining the amount of
Qualifying Capacity needed to meet the Annual Resource Adequacy and
Supply Plan requirement; and
WHEREAS, staff requests City Council's adoption of the
following requirements for the annual and monthly submittals: (a)
annual submittals must demonstrate that (i) 90% of the total system
coincident peak Demand Forecast, plus a Planning Reserve Margin of 15%
of such forecast, has been secured; (ii) 90% of the total flexible
resource adequacy has been secured; and (iii) 100% of the total local
resource adequacy requirement has been secured; and (b) monthly
submittals must demonstrate that (i) 100% of the total system peak
Demand Forecast, plus a Planning Reserve Margin of 15% of such
forecast, has been secured; (ii) 100% of the total flexible resource
adequacy requirement has been secured; and (iii) 100% of the total
local resource adequacy requirement has been secured.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
2 -
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.
SECTION 3: The City Council of the City of Vernon hereby
approves and adopts the Public Utilities Department Resource Adequacy
Plan for Calendar Year 2020 (the "Annual Resource Adequacy Plan"), which
includes the coincident 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 2020, which is attached hereto as Exhibit A.
Furthermore, the City Council of the City of Vernon adopts the
requirements for (a) annual resource adequacy submittals to demonstrate
that (i) 90% of the total system peak Demand Forecast, plus a Planning
Reserve Margin of 15% of such forecast, has been secured; (ii) 90% of
the total flexible resource adequacy has been secured; and (iii) 100%
of the total local resource adequacy requirement has been secured; and
(b) monthly submittals to demonstrate that (i) 100% of the total system
peak Demand Forecast, plus a Planning Reserve Margin of 15% of such
forecast, has been secured; (ii) 100% of the total flexible resource
adequacy requirement has been secured; and (iii) 100% of the total
local resource adequacy requirement has been secured.
- 3 -
SECTION 9: 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 15th day of October, 2019.
ATTEST::
O(Y OX
Lisa M. Pope, City Clerk
APPROVED AS TO FORM:
Brian B un,
Senior Deputy City ttorney
- 4 -
If
Name: Melissa A. Ybarra
Title• Mayor / "--- -- --
STATE OF CALIFORNIA )
) as
COUNTY OF LOS ANGELES )
I, Lisa M. Pope, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2019-47,
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 15, 2019, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this wIWday of October, 2019, at Vernon, California.
L�
Lisa M. Pope, ity Clerk
(SEAL)
EXHIBIT A
City of Vernon
Public Utilities Department's
Resource Adequacy Plan
Calendar Year 2020
Backeround•
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 Planning Reserve Margin, (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's Resource Adequacy Plan
for Calendar Year 2020 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. Estabflsh Monthly Vernon System Peak Demand Forecast for 2020
To establish Vernon's System peak demand forecast, Staffperfmms 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 2015 and 2019, the
City of Vernon system peak demand has decreased 2%. Closer review of Exhibit I reveals
that the decreases in system peak demand from 2018 to 2019 is 3.074%. Based on the 5
year load trend, Staff concluded that a 2% load decrease is an appropriate forecast for
calendar year 2020. Exhibit 2 shows the determination of the projected system peak
demand for 2020 that incorporates a 2% load decrease. The projected system peak demand
for the City of Vernon is also shown below in Table 1.
Table 1
Projected
Load
MW
a
Lebruary
157.13
165.76
h
158.49
162.32
May
164.02
June
1169.53
July
171.55
August
173.66
September
171.70
October
168.30
November
164.25
December
158.27
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
2020. It is also shown below in Table 2.
Table 2
Demand
Forecast
MW
p
124.2
125.0
123.7
121.3
May
139.0
une
1142.4
Jul
142.9
uet
148.E
Se mbar
151.1
October
139.7
November
135.1
December
128.9
Planniug Reserve Marvin
The Planning 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 Planning Reserve Margin at 15%. Staff recommends that the City Council
maintain the Planning Reserve Margin at 15%. The 15% Planning Reserve Margin is used to
establish the monthly Resource Adequacy obligation for the City of Vernon as 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
seven following resources are among those that meet this criterion and provide Qualifying
Capacity. The calculation for the amount of Qualifying Capacity the seven eligible resource
types follows:
CAISO /ST-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
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 shall not exceed the Net Qualifying Capacity
(NQC) as determined and listed annually by the CAISO.
5. Long Term Power Purchase Contracts. Long term power supply contracts (5 years or
greater) 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 I Solar
Project, Astoria 2 Solar Project and Puente Hills Landfill Gas -To -Energy Facility.
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. Finn 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 Vemon 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.
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 2020, the CAISO has determined the system -wide Flexible Capacity needs and
has notified each LSE their monthly requirement. Exhibit 6lists 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 resource will
qualify for the upcoming compliance year. For Calendar Year 2020, the CAISO has
established 78 MW of category 1 base ramping flexible resources adequacy capacity for
Malburg Generating Station, and 5.75 MW category I 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.
Annual and Monthly Resource Adequacy and Suooly 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. Staff asks that City
Council adopt the following requirements for both the annual and monthly submittals:
- Annual: submittals must demonstrate that 90% of the total system forecasted peak
Demand plus planning reserves margin and flexible resource adequacy requirement
has been secured; and 100% of the total local resource adequacy requirement has
been secured.
Monthly: submittals must demonstrate 100% of the total system forecasted peak
Demand plus planning reserves margin, flexible resource adequacy requirement
and local resource adequacy requirement has been met. Data on the monthly plans
may be adjusted for seasonal variations in the City's load or changes in its
contracted/owned resources.
Therefore, as required by the CAISO, 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 2020. 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 demonstrate that 100% of all requirements have been met
and may be adjusted from the annual Resource Adequacy and Supply Plan 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.
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Capacity(MW
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00.00 No
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RA Capactty Effective Start
F
Resource ID In CAISO Master File
Rounding)Rounding)Rounding)Flex
Category
Date 2Wdd
VERNON _6_MALBRG
68
31
39.12
1
1111202D
VERNON
68
31
43.92
1
2M/2020
_6_MALBRG
6 VERNON MALBRG
68
31
43.77
1
3/1/2020
VERNON 6 MALBRG
68
31
44.66
1
4/1/2020
VERNON 6 MALBRG
68
31
43.39
1
5/1/2020
VERNON 6 MALBRG
68
31
40.32
1
6/1/2020
VERNON_6 MALBRG
68
31
40.25
1
7/1/2020
VERNON 6 MALBRG
68
31
43.52
1
8/1/2020
VERNON6_MALBRG
68
31
42.49
1
9/1/2020
VERNON_6 MALBRG
fib
31
41.66
1
10/1/2020
VERNON_6_MALBRG
68
31
37.86
1
11/1/2020
VERNON_MALBRG
68
31
35.42
1
12/1/2020
VERNON 6 GONZLI
5.75
1/1/2020
VERNON 6 GONZL1
5.75
2/1/2020
VERNON
5.75
3/12020
_6_GONZLI
VERNON 6 GONZL7
5.75
4/l/2020
VERNON 6 GONZL7
5.75
5/l/2020
VERNON 6 GONZLI
5.75
6/1/2020
VERNON 6 GONZLI
5.75
7/1/2020
VERNON_6_GONZLl
5.75
Wi/2020
6 VERNON GONZLI
5.75
9IM020
VERNON_6 GONZLi
5.75
10/12020
VERNON_6_GONZLl
5.75
11/1/2020
VERN046_GONZLI
5.75
12/12020
VERNON__6_GONZL2
5.75
1/12020
6 VERNON GON212
5.75
2/12020
VERNON 6 GONZL2
5.75
3/12020
VERNON 6 GONZL2
5.75
4/1/2020
VERNON 6 GOMZL2
5.75
5/12020
VERNON6GONZL2
5.75
61MIM
VERNON_6_GONZL2
5.75
711202D
VERNON
5.75
811202D
_6_GONZL2
VERNON
5.75
9/l2020
_6_GONZL2
VERNON 6 GONZL2
5.75
10/1/2020
VERNON
5.75
11/1/2020
_6_GONZL2
VERNON 6 GONZL2
5.75
10112020
VERN UC_IMS001
22
1/1/2020
_MEAD230_I
VERN
22
2/1/2020
_MEAD230_I_UC_IMS001
VERN
22
W1/2020
_MEAD230_I_UC_IMS001
VERN MEAD230_I_UC_IMS001
22
4/12020
VERN
22
5/12020
_MEAD230_I_UC_IMS001
VERN_MEAD230_I_UC_IMS001
22
6112020
VERN
22
7/12020
_MEAD230_I_UC_IMS001
VERN_MEAD230_I_UC_IMS001
22
8/1/2020
VERN_MEAD230 I UC_IMS001
22
Wt/2020
VERN MEAD230_I_UC_IMSD01
22
10/12020
VERN
22
11/1/2020
_MEAD230_I_UC_IMS001
VERN_MEAD230 I_UC_IMS001
22
12/l2020
VERN
11.59
1/12020
_WESTWING500_I_UC_IMS001
VERN WESTWlNG500 1 UC IMS001
11.59
2/12020
VERN WESTMNG500 I UC_IMS001
11.59
3112020
VERN WEST ING50D_I_UC_IMS001
11.59
4/12020
VERN_WESTWING500IC_IMS001
11.59
5/12020
VERN_WESTWING500_I UC IMS001
11.59
6/1202D
VERN_WESTWING500 I_UC_IMS001
11.59
7/12020
VERN WESTWING500_I UC_IMS001
11.59
8/12020
VERN_WESTWING500I_UIMS001
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2
STAFF REPORT
AGENDAAPPROVED
10/15/19, SD
City Council Agenda Item Report
Agenda Item No. COV-428-2019
Submitted by: Efrain Sandoval
Submitting Department: Public Utilities
Meeting Date: October 15, 2019
SUBJECT
A Resolution Approving and Adopting the Vernon Public Unties Department Resource Adequacy Plan for 2020
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 act constitute a `project" as defined by CEQA Guidelines section 15378; and
B. Adopt a resolution approving and adopting the Public Utikies Department Resource Adequacy Plan for 2020,
which includes the coincident peak Demand Forecast, the Planning Reserve Margin, the Qualifying Capacity Criers
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. Auahorine staff to submit the City of Vernon Public Unties Department's Resource Adequacy Plan for 2020 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 the adequate
resources it needs to meet is electric demand. To do this, the CAISO has established provisions in is Tariffthat are
wended to ensure that Load Servig Entities (LSE), such as the City of Vernon Cvky), wilt secure sufficient resources
to meet them customers' energy demands. Pursuant to Section 40 of the CAISO Tariff; LSFs must annually provide to
the CAISO a Resource Adequacy demonstration or plan. The Resource Adequacy demonstration must include: (1) a
coincident peak Demand Forecast, (2) Reserve Margin, (3) Qualifying Capacity Criers, (4) annual and monthly
Resouce Adequacy and Supply data, (5) a list of Resource Adequacy Resources that will be counted on to satisfy is
Local Capacity Requirement and (6) Flexible Resource Adequacy Capacity Requirement. The above -mentioned
Resource Adequacy demonstration categories are each defined and described in detail below.
(1) Coincident peak Demand Forecast is defined as the amount ofthe City of Ver on's load that contributes to the
CAISO system peak. This is calculated by first establishing a monthly peak demand forecast for the upcoming year. A
morally 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 bad reduction for 2020 is set at 2.0%. To establish
the monthly peak demand for 2020, Staff has used the most recent 12-month highest morally peak demand and applied
a 2.0%reduction. Once the peak demand forecast's 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 Vemon annually by the California Energy Commission. It s the percentage of the
City of Vernon's energy demand at the time of the CAISO system's peak demand. Mathematically, the coincident
peak Dermnd Forecast for 2020 is equal to the peak demand forecast multiplied by the coincident peak demand factor.
AGENDA APPROVED
10/15/19, SD
(2) Planning Reserve Margin is defined as the amount of Resource Adequacy Capacity that a ISE mist maim
above its coincident peak Demand Forecast. Pursuant to the CAISO TarK a LSE mat establish a Planning Reserve
Margn of m less than 15%. Historically, the City of Vernon has established its Planning Reserve Margin at 1501.
(3) Qualifying Capacity Criteria is defined as a description of the criteria that will be used to detennne the type of
resources that can be used to meta LSE's capacity obligation and the amount of capacity (Qualtyng Capacity) from
such resources. The City of Vernon has elected to use the following resources to meet its capacity reeds and the
gwfiP ng capacity from each of them:
a) Power supply contract(s) entered through Western Systems Power Pool (WSPP) Agreement Market Redesign
and Technology Upgrade (MRTU) Amendment and defined as any Scheduling Coordinator (SC}to-SC traded
product for which an Inter -SC Trade (1ST) can be submitted to the CAISO.
b) Vernon Purchase Power Contract with the Southern California Public Power Authority (SCPPA) for the
SCPPA's share ofthe Palo Verde Generating Station. The qualified capacity shall be 4.9%of SCPPA's share ofthe
Palo Verde Gemratng Staten.
c) The contract between the United States Department of Energy Western Area Power Administration Boulder
Carryon Project and the City of Vemcn. 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 C'ty of Vemon's electric system The amount of Qualilyng
Capacity of such units shall not exceed the Net Qualifying Capacity (NQC) as determined and listed annually by the
CAISO.
e) Long term power purchase contracts of 5 years or longer. The Qualifying Capacity will be based on the City of
Vemon's percentage share ofthe contracted capacity quantity.
t) Capacity from a Participating Generator, System Unit or System Resource as defined in the CAISO Tariff.
g) Interruptible Service agreements between the City of Vemon 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 ofthe Maburg Generating Station or any other generating unit internal to the
City's electric system
(4) Local Capacity Requirement - On an annual basis, the CAISO publishes a technical study that determines the
amount ofcapacity resources needed in the Los Angeles Basin area that must be available to the CAISO. Based on
this study, the CAISO allocates the amnrrt of local capacity the C'ty of Vernon mat make available each month The
resources that will meet the City of Venon's Local Capacity Requirement mat then be included in the CAISO
approved Resource Adequacy data templates.
(5) Flexible Resource Adequacy Capacity Requirement - On an annual basis the CAISO conduets 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 ofthe CAISO managing a "greener" grid. The increase of variable energy resources and
distnbuted generation has presented significant challenges to grid reliability. The CAISO determines for- and allocates
to- each LSE their comespording Flexible Resource Adequacy Capacity Requirement. The Tari frequires LSFs to
have sufficient resources that can ramp up and down quickly and have the potential to start and shut down multiple tones
per day (ire., flexible capacity). ISEs 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 ofFlexible Resource Adequacy resources that will meet its requirement. These resources mst
be listed and submitted to the CAISO in the approved Resource Adequacy data template.
AGENDAAPPROVED
10/15/19, SD
(6) 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 idenfi y all of the qualrtied resources committed to meet the City's resource
adequacy obligations and the adopted Reserve Marge The Supply data templates list only those resources that the City
owns or is responsible for scheduling with the CAISO. Annual Resource Adequacy Plans data must demonstrate that:
90% of the total system forecasted peak demand plus p6rmig Reserve Margin and Flexible Resource Adequacy
Capacity Rqurenent has been secured; and 100%ofthe total local resource adequacy requirement has been secured.
Monthly Resource Adequacy and Supply data templates aim demonstrate that 100% of total system forecasted peak
demand plus planning Reserve Margin, Flewbk Resource Adequacy Capacity Requiement and local resource
adequacy requirement has been met. Monthly Resource Adequacy and Supply data may be adjusted for seasonal
variations in the City's bad or changes in its contracted/owned resources.
Consistent with the CAISO Tariff requirements, Staff has prepared the City of Vernon Public Utilities Departrnem's
Resource Adequacy Plan for 2020.
Focal Impact:
There is no known focal impact.
ATTACHMENTS
• I. ResoMaion - 2020 Amual Resource Adegtocy Phn