Resolution No. 2020-038 RESOLUTION NO. 2020-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND ADOPTING THE VERNON PUBLIC UTILITIES
DEPARTMENT RESOURCE ADEQUACY PLAN FOR 2021, 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 APPROVING THE RESOURCES USED TO SATISFY THE
CALIFORNIA INDEPENDENT SYSTEM OPERATOR'S TARIFF
REQUIREMENTS
SECTION 1. Recitals.
A. 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.
B. The City has executed a Metered Subsystem Agreement ("MSS Agreement") with
the California Independent System Operator ("CAISO").
C. The City is considered a Load Serving Entity ("LSE") under certain terms of the
CAISO's Tariff ('Tariff').
D. 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.
E. The Tariff also requires each LSE to submit monthly Resource Adequacy Plans
and Supply Plans.
F. 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 2021. 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.
G. Based upon staff analysis. no load growth adjustment is appropriate for 2021 .
H. Based upon that review, the City finds that the default 15% Reserve Margin set
forth in the Resource Adequacy provisions of the Market Redesign and Technology
Upgrade ("MRTU") Tariff is sufficient for planning purposes.
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Based upon that review. the City finds that the Projected Load forecast specified
in the City of Vernon Demand Forecast for 2021, 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.
J. 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
coincident 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:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon hereby approves and adopts
the Public Utilities Department Resource Adequacy Plan for Calendar Year 2021 (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
2021, 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 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 to demonstrate that
(i) 100% of the total system coincident 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.
III
III
Resolution No. 2020-38
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SECTION 4. The City Clerk shall certify the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED this 20th day of October, 2020.
ETICIA LOPEZ, Mayor
AT/TEESST:
ht—
LISA POPE. City CCIArk�
(seal)
APPrOVED ASA-
ANOLDTTO FORM:
M. ALVREZ-GLASMAN.
Interim City Attorney
I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2020-38 was passed and adopted by
the City Council of the City of Vernon at the regular meeting on October 20. 2020 by the
following vote:
AYES: 5 Council Members: Davis, Gonzales. Menke, Ybarra, Lopez
NOES: 0
ABSENT: 0
ABSTAIN: 0 rl
/AIX
LISA POPE, City Clerk
(seal)
Resolution No.2020-38
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EXHIBIT A
City of Vernon
Public Utilities Department's
Resource Adequacy Plan
Calendar Year 2021
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Background:
The Resource Adequacy provisions of the CAISO's Tariff require the Scheduling Coordinator
("SC") of a Load Serving Entity ("LSE") such as the City of Vernon to establish and submit
the following information upon approval from its Local Regulatory Authority.(1) a Coincident
Peak Demand Forecast for its load,(2)a 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 2021" 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
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Resolution No 2020-38
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are intended to achieve on-peak demand reduction and lower the need to build new generation
to meet peak demand. Vernon has adopted such a rate structure and has succeeded in shifting
the peak demand period for Vernon's system to a time that is generally earlier than the time of
the CAISO system peak.
Vernon's share of needed capacity to meet CAISO control area capacity requirements may be
established by determining the amount of Vernon's load that contributes to the CAISO system
peak. Vernon's load that contributes to the CAISO system peak is the City of Vernon
coincident peak Demand. The process to establish Vernon's monthly coincident peak Demand
Forecast consists of the following three steps:
1. Establish Monthly Vernon System Peak Demand Forecast Jru 2021
To establish Vernon's System peak demand forecast,Staff performs an analysis on the year
to year change in the City's energy demand peaks during a five-year period. Based on the
results of the analysis, staff forecasts a load growth rate for the coming calendar year
(Exhibit 1). This year's analysis shows that for the period between 2016 and 2020, the
City of Vernon System peak demand has decreased year over year with the exception of
2019 to 2020. Exhibit 1 reveals that as a result of the three consecutive years of decreasing
demand and an increase on the fifth year, the growth rate has been flat over the five-year
period. Based on the 5 year load trend, staff concluded that no load growth adjustment is
an appropriate forecast for calendar year 2021. Exhibit 2 shows the determination of the
projected system peak demand for 2021 based on no load growth adjustment. The
projected system peak demand for the City of Vernon is also shown below in Table 1.
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Table 1
Projected
Load
2021 MW
January 168.5
February 168.6
March 164.8
April 157.1
May 168.7
June 178.0
July 184.6
August 188.6
September 185.8
October 170.2
November 172.1
December 170.9
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
2021. It is also shown belo‘s in Table 2.
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Table 2
Demand
Forecast
2021 MW
January 132.3
February 130.4
March 134.0
April 123.5
May 143.0
June .150.6
July 157.4
August 161.3
September 159.4
October 145.9
November 141.5
December 138.9
Planning Reserve Margin
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
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Capacity. The calculation for the amount of Qualifying Capacity the seven eligible resource
types follows:
1. CAISO 1ST-enabled Product. Power supply contract/s entered through WSPP
Agreement (MRTU Amendment) and defined as any SC-to-SC traded product for
which an 1ST (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 1 Solar
Project, Astoria 2 Solar Project and Puente Hills Landfill Gas-To-Energy Facility.
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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 be located in the CAISO control area or
have a firm transmission path from source to the CAISO control area. Such criteria for
firm transmission facilities over the CAISO control area can be satisfied with the
possession of a firm transmission right from the CAISO on the path associated with the
System Resource. Firm transmission rights provide physical priority right to schedule
over congested paths.
7. Interruptible Service Agreements. Interruptible Service Agreements with the City's
Electrical customers. Currently Vernon has an Interruptible Service Agreement where
the customer agrees to interrupt 12.65 MW of load within a 30-minute notification. A
period of interruption can occur upon notification from the Independent System
Operator(ISO) requiring the City to shed load or upon the unscheduled outage of the
Malburg Generating Station("MGS")or any other generating unit internal to the City's
system.
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. Additionally. any Interruptible
Service Agreements with the City's electric customers shall count towards the City's Local
Capacity's requirement.
7
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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 flexibi I it.:
(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 2021,the CAISO has determined the system-YY ide Flexible Capacity needs and
has notified each LSE their monthly requirement. Exhibit 6 lists the City's Flexible Capacity
requirement by month and category. Furthermore, the CAISO has established the Effective
Flexible Capacity for each resource and the category of Flexible Capacity each resource will
qualify for the upcoming compliance year. For Calendar Year 2021, the CAISO has
established 78 MW of category 1 base ramping flexible resources adequacy capacity for
Malburg Generating Station, and 5.75 MW category 1 base ramping flexible resource
adequacy capacity for each H. Gonzales Unit (Exhibit 7). CAISO Tariff Section 40.10.5.1
requires the Scheduling Coordinators of LSEs to identify the resources it will rely on to satisfy
its Flexible Resource Adequacy Capacity on both the annual and monthly Resource Adequacy
data templates.
8
Resolution No.2020-38
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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 Supply data:
The CAISO Tariff requires that the scheduling coordinator of a load serving entity provide an
annual and a monthly Resource Adequacy Plan(Section 40.2.2.4)using the required templates
and submitted on the set schedules. Furthermore, the scheduling coordinator of a resource
providing resource adequacy must submit both an annual and monthly Supply Plan (Section
40.4.7.1)using the required templates and submitted on the set schedules. Staff asks that City
Council adopt the following two requirements for both the annual and monthly submittals:
1. Annual: submittals must demonstrate that 90% of the forecasted coincident 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.
2. Monthly:submittals must demonstrate 100%of the forecasted coincident 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 2021. 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.
9
Resolution No.2020-38
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Exhibit 1
Resolution No.2020-38
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Exhibit 1
5 year Sytem Peak Demand Analysis
Year Peak % Inc./Dec.
(A) (B) (C)
1 2016 189,4
2 2017 184.1 -2.814%
3 2018 182 8 -0.674%
4 2019 177.2 -3.074%
5 2020 188.6 6.410%
6 Average 184.4 0.0%
A Year
B Source: (City Historical Sytem Peak Load Data)
C % Increase/Decrease from previous year.
Note: The five year system peak demand average will be used in this year's RA Plan.
It has been determined that no load growth is appropriate for calendar 2021.
Resolution No.2020-38
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Exhibit 2
Resolution No 2020-38
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Exhibit 2
January - December 2021 Projected Load
Forecast based 2021
2019-2020 Projected
(Actual City System Peak
_ Month System Load) Load
(A) (B) (C)
1 January '20 168.52 168.52
2 February '20 168.64 168.64
3 March '20 164.75 164.75
4 April '20 157.07 157.07
5 May '20 168.71 168.71
6 June '20 178.03 178.03
7 July '20 184.60 184.60
8 August '20 188 57 188.57
9 September'20 185.76 185.76
10 October '19 170.24 170.24
11 November'19 172.09 172.09
12 December'19 170.94 170.94
A Month and Year
B Source: (Forecasted Peak Based on Historical System Peak Load Data)
C Projected Load for 2021 (0% load decrease is applied)
Resolution No 2020-38
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Exhibit 3
Resolution No.2020-38
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Exhibit 3
January - December 2021 Resource Adequacy Requirement
Vernon Coincident
System Peak Coincidental Peak Demand RA Capacity
Month Demand Peak Factor Forecast Requirement
(A) (B) (C) (D) (E)
1 January 168.5 78.5% 132.3 152.1
2 February 168.6 77.3% 130.4 150.0
3 March 164.8 81.3% 134.0 154.1
4 April 157.1 78.6% 123.5 142.0
5 May 168.7 84 8% 143.0 164.4
6 June 178.0 84.6% 150.6 173.1
7 July 184.6 85.3% 157.4 181.0
8 August 188.6 85.5% 161.3 185.5
9 September 185.8 85.8% 159.4 183.3
10 October 170.2 85 7% 145.9 167.8
11 November 172.1 82.3% 141.5 162.8
12 December 170.9 81 3% 138.9 159.7
A Month
B Source: (Exhibit 2 Column E)
C Source: CEC
D Product of B and C
E Product of D and 115% (115% reflects Planning Reserve Margin)
Resolution No.2020-38
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Exhibit 4
Resolution No.2020-38
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* California ISO
Shaping a Renewed Future
Report Type Annual (Monthly/Annual)
Report Date 9/25/2020 (MM/DD/YYYY)
Name of Load Serving Entity(LSE): City of Vernon (Text Field)
Scheduling Coordinator(SCID): VERN (AAAA)
Person who prepared this RA Plan(Name): Efrain Sandoval (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field)
Primary Contact
Name: Efrain Sandoval (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field)
Address: 4305 Santa Fe Ave. (Text Field)
Address 2: (Optional.Text Field)
City: Vernon (Text Field)
State: CA(Text Field)
Zip: 90058 (Numeric)
Telephone: (323)826-1424 (Numeric)
Email es ndovaled vernon ea us (Text Field)
Back-Up Contact
Name: Shawn Sharif(Text Field)
Title: Principal Resource Scheduler/Trader (Text Field)
Telephone: (323)826-3625 (Numeric)
Email: ssharifaci.vernon.ca.us (Text Field)
Confidential RA Data 1 of 2 9/29/2020
Resolution No.2020-38
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1 Local RA System RA Flexible RA RA Capacity RA Capacity
Canna),DMCapac'ay(MIM Capacity DMEffective Stan Effective Endte 00.00 No 00.00 No 00.00 No Flea Dale Da
Resource D in CABO Mester Fit Rounding) Roundly) Rounding) Category (mn ddyyyy) (eaaldd0108.6_.,
VERNON 0_MALB /12 RG 70 64 38.89 1021 1212021
VERNON 0_MALBRG 70 64 3928 2/12021 2/202021
VERNON_0_MALBRG 70 84 4248 3/12021 3312021
VERNON_0_MALBRG 70 64 4328 4/12021 4302021
VERNON_0_MALBRG 70 64 406 5/12021 Y312021
VERNON_6_MALBRG 70 64 42 37 6/12021 M0/2021
VERNON 6 MAL.BRG 70 6a 4248 7/t2021 7/312021
VERNON 6_MALBRG 70 64 42 53 822021 8212021
VERNON 6 MALBRG 70 64 45.08 9/12021 9/30/2021
VERNON_8 MALBRG 70 64 44.34 10/12021 10312021
VERNON 6 MALBRG 70 64 38.15 11/12021 11/302021
VERNON 6 MALBRG 70 64 41 99 12/12021 12/312021
VERNON_6_GONa 575 1/12021 1/312021
VERNON 6 GON21 5.75 2/12021 2282021
VERNON 6 GONZL 5 75 3/12021 3212021
VERNON 6 GONZL 5 75 4/12021 4/302021
VERNON 6_GONaL 5 75 5/12021 salami
VERNON_6_GON21 5 75 d12021 6/302021
VERNON 6 GONZL 5 75 7/12021 7/312021
VERNON 6 GONZL 575 6/12021 6312021
VERNON 6_GON2L 575 622021 9/302021
VERNON 6_GONZL 575 10/12021 10212021
VERNON 6_GONZL 5.75 11/12021 11/302021
VERNON_6_GONZL 5.75 12/12021 12/312021
VERNON_6_GONZL2 5.75 1/12021 1)31/2021
VERNON_6_GONZL2 5.75 2/12021 2282021
VERNON_6_GONZL2 5.75 3/12021 3/312021
VERNON_6_GONZL2 5.75 4/12021 4/302021
VERNON 6 GONZL2 5.75 5/12021 5/31/2021
VERNON_6_GONZL2 575 8/12021 6202021
VERNON_6_GONZL2 5 75 7/12021 7/312021
VERNON_6_GONZL2 5 75 6/12021 8/312021
VERNON_6_GONZL2 5.75 9/12021 9/302021
VERNON_6_GONZL2 5.75 10/12021 10/312021
VERNON600NZL2 5.75 11/1/2021 11302021
VERNON_6_GONZL2 5.75 12/12021 12/312021
VERN_MEA0230_I U- C_IMS001 22 1/12021 I/312021
VERN_MEAD230_I UC_IMS001 22 2/12021 2282021
VERN MEA0230_I UC_IMS001 22 3/12021 3212021
VERMEAO230_I U- C_IMS001 22 4/12021 4/302021
VERNN_MEAD230_I_UC_IMS001 22 5/12021 5312021
VERN MEA0230_I UC_IMS001 22 6/12021 620/2021
VERN MEA0230_I UC_IMS001 22 7/12021 7312021
VERN MEAO230_I U- C_IMS001 22 8/12021 6/312021
VERN MEA0230_I UC_IMS001 22 9/12021 9302021
VERN MEAD230 I--UC IMS001 22 10/12021 10212021
VERN MEA0230_I UC_IMS001 22 11/1/2021 1130/2o21
VERN MEA0230_I UC_IMS001 22 12/12021 12/312021
VERN WESTWING500_t UC_OAS001 II 59 1/12021 1212021
VERN_WESTWING500_IUC_MS001 11 59 2/12021 2284021
VERN WESTWING500_I_UC_MS001 1159 3/12021 3212021
VERN_WESTVNNG500_I U- C_OAS001 11.59 4/12021 4/302021
VERN WESTW1NG500_I U- C_MS001 11.59 5/12021 5/312021
VERN WESTWING500_I_UC_OAS001 11.59 6/12021 620/2021
VERN WESTNING500_I U- C MS001 1i 59 7/12021 7212021
VERN WESTVNNG500_I UC_MS001 11 59 6/12021 631/2021
VN VERN_WESTNG500_I_UC_M5001 11 59 9/12021 9302021
VERN WESTVNNG500_I UC_MS001 II 59 10/12021 10312021
VERN_WESTWING500_I_UC_IMS001 11 59 11/12021 11/302021
VERN_WESTWING500 I UC IMS001 11 59 12/12021 12212021
WALNUT 6_HLLGEN__ _ 5.1 1/12021 1312021
WALNUT 6_MLLGEN 5.06 2/12021 2282021
WALNUT 6_111L1GEN 5.02 3/12021 3212021
WALNUT 6_HLLGEN 4.98 4/12021 4302021
WALNUT 6_HLLGEN 4 94 S/12021 5212021
WALNUT 6_HLLGEN 4.9 6/12021 630R021
WALNUT_6_HLLGEN 4.88 7/12021 7312021
WALNUT_6_HLLGEN 482 8/12021 6312021
WALNUT_6_HLLGEN 4 79 9/12021 9202021
WALNUT_6_HILLGEN 4 75 10/12021 10312021
8660.NUT_0 HILLGEN 471 11/12021 11302021
WALNUT HILLGEN 4 87 12/12021 12/312021
ASTORA_2_SOLAR2 0 8 1/12021 131/2021
ASTORA_2_SOLAR2 06 2/12021 2282021
ASTORA_2_SOLAR2 36 3/12021 3212021
ASTORA_2_SOLAR2 3 4/12021 4/302021
ASTORA_2_SOLAR2 3.2 5/12021 5312021
ASTORA_2_SOLAR2 6.2 6/12021 6/302021
ASTORA2_SOLAR2 78 7/12021 7212021
ASTORA_2 SOLAR2 54 8/12021 8212021
ASTORA_2_SOLAR2 28 9/12021 9302021
ASTORA_2_SOLAR2 04 10/12021 10312021
ASTORA_2_SOLAR2 04 11/12021 11302021
BIGSKV_2_SOLAR7 1 1/12021 1212021
BIGSKY_2_SOLAR7 075 2/12021 2282021
BIGSKY_2_SOLAR7 4.5 3/12021 3312021
BIGSKY_2_SOLAR7 375 4/12021 4302021
BIGSKY_2_SOLAR7 4 5/12021 53t2021
BIGSKY_2_SOLAR7 7.75 6/12021 6302021
BIGSKY_2_SOLAR7 9.75 7/12021 731/2021
BIGSKY_2_SOLAR7 6.75 6/12021 6212021
BIGSKV_2_SOLAR 7 3.5 9/12021 9202021
BIGSKY_2_SOLAR7 0 5 10/1/2021 10212021
BIGSKV 2 SOLAR7 0 5 11/12021 11202021
Coufderaial RA Data 2 of 9292020
Resolution No.2020-38
Page 22 of 28
Exhibit 5
Resolution No. 2020-38
t' California ISO Page23of28
Shaping a Renewed Future
Report Type Amual
Report Date 9/25/2020
Name of Supplier.i City at Vernon
Scheduling Coordinator VERN
Person who prepared this RA Plan(Name): Efrain Sandoval(Text Field)
Tide: Principal Resource Scheduler/Trader(Text Field)
Primary Contact
Name: Efrain Sandoval(Text Field)
Title: Principal Resource Scheduler/Trader(Text Field)
Address: 4305 Santa Fe Ave (Text Field)
Address 2: (Optional.Text Field)
City: Venda(Text Field)
State: CA(Text Field)
Zip: 90058(Nunenc)
Telephone: (323)826-1424(Nunenc)
Email esardovalecrD i vernon ca us(Text Field)
Back-Up Contact
Name: Shawn Shard(Text Field)
Title: Principal Resource Scheduler/Trader(Text Field)
Telephone: (Numeric)
Email: ssttard(®ci vernon ca us(Text Field)
Confidential Supply Data 1 of 2 9/29/2020
Resolution No.2020-38
Page 24 of 28
Local RA System RA Flexible RA RA Capacity SCID of
Capacity(MW Capacity(MW Capacity(MW Flexible RA Capacity Effective End Load
00.00 No 00.00 No 00.00 No Category Effective Start Date Serving
Resource ID in CNSO Master File Rounding) Rounding) Rounding) 1,2,3 Date(mm/dd/yyyy) (mm/dd/yyyy) Entity
VERNON_6_MALBRG 70 64 38.89 1 1/1/2021 1/31/2021 VERN
VERNON_6_MALBRG 70 64 39 28 1 2/1/2021 2/28/2021 VERN
VERNON_6_MALBRG 70 64 42.48 1 3/12021 3/31/2021 VERN
VERNON_6_MALBRG 70 64 4328 1 4/1/2021 4/30/2021 VERN
VERNON_6_MALBRG 70 64 40.6 1 5/12021 5/31/2021 VERN
VERNON_6_MALBRG 70 64 42.37 1 6/1/2021 6/30/2021 VERN
VERNON_6_MALBRG 70 64 42.48 1 7/1/2021 7/31/2021 VERN
VERNON_6_MALBRG 70 64 42 53 1 8/1/2021 8/312021 VERN
VERNON_6_MALBRG 70 64 45.08 1 9/1/2021 9/30/2021 VERN
VERNON_6_MALBRG 70 64 44.34 1 10/1/2021 10/31/2021 VERN
VERNON_6_MALBRG 70 64 38.15 1 11/1/2021 11/30/2021 VERN
VERNON_6_MALBRG 70 64 41.99 1 12/1/2021 12/31/2021 VERN
VERNON_6_GONZL1 5.75 1/1/2021 1/31/2021 VERN
VERNON_6_GONZL1 5 75 2/1/2021 2/28/2021 VERN
VERNON_6_GONZL1 5.75 3/1/2021 3/31/2021 VERN
VERNON_6_GONZL1 5.75 4/1/2021 4/30/2021 VERN
VERNON_6_GONZL1 5.75 5/1/2021 5/31/2021 VERN
VERNON_6_GONZL1 5.75 6/1/2021 6/30/2021 VERN
VERNON_6_GONZL1 5.75 7/1/2021 7/31/2021 VERN
VERNON_6_GONZL1 5.75 8/1/2021 8/31/2021 VERN
VERNON_6_GONZL1 5.75 9/1/2021 9/30/2021 VERN
VERNON_6_GONZL1 5.75 10/1/2021 10/31/2021 VERN
VERNON_6_GONZL1 5.75 11/1/2021 11/30/2021 VERN
VERNON_6_GONZL1 5.75 12/1/2021 12/31/2021 VERN
VERNON_6_GONZL2 5.75 1/1/2021 1/31/2021 VERN
VERNON_6_GONZL2 5.75 2/1/2021 2/28/2021 VERN
VERNON_6_GONZL2 5 75 3/1/2021 3/31/2021 VERN
VERNON_6_GONZL2 5.75 4/1/2021 4/302021 VERN
VERNON_6_GONZL2 5 75 5/12021 5/31/2021 VERN
VERNON_6_GONZL2 5 75 6/12021 6/30/2021 VERN
VERNON_6_GONZL2 5.75 7/1/2021 7/31/2021 VERN
VERNON_6_GONZL2 5 75 8/1/2021 8/31/2021 VERN
VERNON_6_GONZL2 5 75 9/1/2021 9/302021 VERN
VERNON_6_GONZL2 5 75 10/1/2021 10/31/2021 VERN
VERNON_6_GONZL2 5.75 11/1/2021 11/30/2021 VERN
VERNON_6_GONZL2 5.75 12/1/2021 12/312021 VERN
VERN_MEAD230_I_UC_IMS001 22 1/1/2021 1/31/2021 VERN
VERN_MEAD230_I_UC_IMS001 22 2/1/2021 2/28/2021 VERN
VERN_MEAD230_I_UC IMS001 22 3/1/2021 3/312021 VERN
VERN_MEAO230_I_UC_IMS001 22 4/1/2021 4/30/2021 VERN
VERN
_MEAO230_I_UC_IMS001 22 5/1/2021 5/312021 VERN
VERN_MEAD230_I_UC_IMS001 22 6/1/2021 6/302021 VERN
VERN_MEAD230_I_UC_IMS001 22 7/1/2021 7/31/2021 VERN
VERN_MEAD230_I_UC_IMS001 22 8/1/2021 8/31/2021 VERN
VERN_MEAD230_I_UC_IMS001 22 9/12021 9/30/2021 VERN
VERN_MEAO230_I_UC IMS001 22 10/12021 10/31/2021 VERN
VERN_MEAD230_I_UC IMS001 22 11/1/2021 11/30/2021 VERN
VERN_MEAD230_IUC IMS001 22 12/1/2021 12/31/2021 VERN
VERN WESTWING500 I_UC_IMS001 11.59 1/1/2021 1/31/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11 59 2/1/2021 2/28/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11 59 3/12021 3/31/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11 59 4/12021 4/30/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 5/1/2021 5/31/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 6/1/2021 6/30/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 7/1/2021 7/31/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 8/1/2021 8/31/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 9/1/2021 9/30/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 10/1/2021 10/31/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 11/1/2021 11/30/2021 VERN
VERN_WESTWING500_I_UC_IMS001 11.59 12/1/2021 12/31/2021 VERN
Confidential Supply Data 2 of 2 9/29/2020
Resolution No.2020-38
Page 25 of 28
Exhibit 6
Resolution No.2020-38
Page 26 of 28
Exhibit 6
January - December 2021 Flexible RA Requirement
Min. Base Super Total Flexible
Flexibility Peak Peak RA
Requirement Flexibility Flexibilty Requirement
(A) (B) (C) (D) (E)
1 January 14.66 22.29 1.94 38.89
2 February 14.81 22.51 1.96 39.28
3 March 16.01 24.35 2.12 42.48
4 April 16.32 24.80 2.16 43.281
5 May 20.05 18.52 2.03 40.60
6 June 20.92 19.33 2.12 42.37
7 July 20 97 19.39 2.12 42.48
8 August 21.00 19.40 2.13 42.53
9 September 22.26 20.57 2.25 45.08
10 October 16.72 25.40 2.22 44.34
11.November 14.38 21.86 1.91 38.15
12 December 15.83 24.06 2.10 41.99
A Month
B Requirement for Category 1 - Base Ramping Resources
C Maximum allowed use of Category 2 - Peak Flexibility
D Maximum allowed use of Category 3 -Super Peak Flexibility
E Total Flexible RA Requirement for City of Vernon
Resolution No.2020-38
Page 27 of 28
Exhibit 7
Resolution No 2020-38
Page 28 of 28
Exhibit 7
January - December 2021 Effective Flexible Capacity
Effective Flexible
Flexible Capacity
Capacity Category
(A) (B) (C)
1 Malburg Generating Station 78 1
2 H. Gonzalez 1 5.75 1
3 H. Gonzalez 2 5.75 1
A Designated flexible resource
B Designated Effective Flexible Capacity (Qualified Flexible Capacity by each Resource)
C Designated Flexible Capacity Category
STAFF REPORT
City Council Agenda Item Report
Agenda Item No. COV-366-2020
Submitted by: Efrain Sandoval
Submitting Department: Public Utilities
Meeting Date: October 20, 2020
SUBJECT
Resource Adequacy Plan for 2021
Recommendation:
A. Adopt Resolution No. 2020-38 approving and adopting the Vernon Public Utilities Department
Resource Adequacy Plan for 2021, which includes the coincident peak Demand Forecast, the Planning
Reserve Margin, the Qualifying Capacity Criteria and the Qualifying Capacity from such resources, CiWs
Resource Adequacy and Supply Data and approving the resources used to satisfy the California
Independent System Operator's (CAISO)tariff requirements; and
B. Authorize staff to submit the City of Vernon Public Utilities Department's Resource Adequacy Plan for
2021 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 its electric demand. To do this, the CAISO
has established provisions in its Tariff that are intended to ensure that Load Serving Entities ("LSE"),
such as the City of Vernon ("City'), will secure sufficient resources to meet their customers' energy
demands.
Pursuant to Section 40 of the CAISO Tariff, LSEs must annually provide a Resource Adequacy
demonstration or plan to the CAISO. The Resource Adequacy demonstration must include: (1) a
coincident peak Demand Forecast, (2) Reserve Margin, (3) Qualifying Capacity Criteria, (4) annual and
monthly Resource Adequacy and Supply data, (5) a list of Resource Adequacy Resources that will be
counted on to satisfy its Local Capacity Requirement and (6) Flexible Resource Adequacy Capacity
Requirement. The Resource Adequacy demonstration categories are each defined and described in
detail below.
(1) Coincident peak Demand Forecast is defined as the amount of the City of Vemon's load that
contributes to the CAISO system peak. This is calculated by first establishing a monthly peak Demand
Forecast for the upcoming year and applying a projected load growth rate if appropriate. Based on staff
analysis, no load growth adjustment is appropriate for 2021 . To establish the Coincident Peak Demand
Forecast for 2021, staff has used its monthly peak Demand Forecast (as listed on Table 1 of the
Resource Adequacy Plan for 2021) and multiplied it by the coincident peak factor provided by the
California Energy Commission. The results of this calculation are the Coincident Peak Demand
Forecast and are listed on Table 2 of the Resource Adequacy Plan for 2021.
(2) Planning Reserve Margin is defined as the amount of Resource Adequacy Capacity that a LSE
must maintain above its coincident peak Demand Forecast. Historically, the City of Vernon has
established its Planning Reserve Margin at 15%.
(3) Qualifying Capacity Criteria is defined as a description of the criteria that will be used to
determine the type of resources that can be used to meet a LSE's capacity obligation and the amount of
capacity(Qualifying Capacity)from such resources. The City of Vernon has elected to use the following
resources to meet its capacity needs and the qualifying capacity from each of them:
a) Power supply contract(s) entered through 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 of the Palo Verde Generating Station. The qualified capacity shall be 4.9% of
SCPPA's share of the Palo Verde Generating Station.
c) The contract between the United States Department of Energy Western Area Power
Administration Boulder Canyon Project and the City of Vernon. The Qualifying Capacity will be based on
the most current schedule for the available capacity from the Boulder Canyon Project.
d) The generating units and system units within the City of Vemon's electric system. The amount of
Qualifying 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 Vernon's percentage share of the contracted capacity quantity.
f) Capacity from a Participating Generator, System Unit or System Resource as defined in the
CAISO Tariff.
g) Interruptible Service agreements between the City of Vernon and its electrical customers. The
Qualifying Capacity will be based on the contracted amount the electrical customer has agreed to
interrupt.
(4) Local Capacity Requirement is defined as the monthly allocation of the local capacity (Los
Angeles Basin) the City of Vernon must make available to the CAISO and demonstrated in the CAISO
approved Resource Adequacy data templates. Resources located in the Los Angeles Basin area shall
count toward the Citys local capacity requirement.
(5) Flexible Resource Adequacy Capacity Requirement is defined as the monthly allocation of the
Flexible Resource Adequacy Capacity Requirement the City of Vernon must make available to the
CAISO and demonstrated in the CAISO approved Resource Adequacy data templates. Flexible
resources are resources that can ramp up and down quickly and have the potential to start and shut down
multiple times per day(i.e., flexible capacity). The Malburg Generating Stations and the City owned H.
Gonzales units shall count towards the City's flexible capacity requirement.
(6) Annual and monthly Resource Adequacy and Supply data - must be submitted to the CAISO on
the established templates and on the set schedule dates. The Resource Adequacy data templates shall
identify all of the qualified resources committed to meet the CiWs Resource Adequacy obligations and
the adopted Reserve Margin. Annual Resource Adequacy Plans data must demonstrate that: 90% of the
Coincident Peak Demand Forecast plus planning Reserve Margin and Flexible Resource Adequacy
Capacity Requirement has been secured; and 100% of the total local Resource Adequacy requirement
has been secured. Monthly Resource Adequacy and Supply data templates must demonstrate that 100%
of the Coincident Peak Demand Forecast plus planning Reserve Margin, Flexible Resource Adequacy
Capacity Requirement and local Resource Adequacy requirement has been met. Monthly Resource
Adequacy and Supply data may be adjusted for seasonal variations in the Citys load or changes in its
contracted/owned resources.
Consistent with the CAISO Tariff requirements, staff has prepared the City of Vernon Public Utilities
Department Resource Adequacy Plan for 2021 and is attached herein.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Resolution No. 2020-38 2021 Annual Resource Adequacy and Supply Plan