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Resolution No. 2021-033 Resolution No. 2021-33 Page 2 of 14 _______________________ I. The Public Utilities Department has prepared a Report, with exhibits, dated on or about October 19, 2021 (“Report”), which determines the revised TRBAA for 2022 to be consistent with the TO Tariff and supports the TRBAA and the changes to Appendix I of the TO Tariff to implement the revised TRBAA effective January 1, 2022. J. The Public Utilities Department has recommended that the TRBAA and Appendix I to the TO Tariff implementing the revised TRBAA be approved. K. The City Council has heard and considered all evidence, both written and oral, presented in consideration of the establishment of the City’s revised TRBAA and revised Appendix I to the TO Tariff implementing the revised TRBAA. 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 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 revised TRBAA and amended Appendix I to the TO Tariff implementing the revised 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 revised TRBAA for 2022 and amended Appendix I to the TO Tariff implementing the revised TRBAA for 2022, 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, 2022, the establishment of the City’s revised TRBAA for 2022, and revised Appendix I to the TO Tariff implementing the revised TRBAA for 2022, 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 revised TRBAA for 2022, 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 the City of Vernon. / / / / / / Resolution No. 2021-33 Page 3 of 14 _______________________ SECTION 6. 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 19th day of October, 2021. _________________________ MELISSA YBARRA, Mayor ATTEST: ________ LISA POPE, City Clerk (seal) APPROVED AS TO FORM: ___________________________________ ZAYNAH N. MOUSSA, Interim City Attorney I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2021-33 was passed and adopted by the City Council of the City of Vernon at the Regular meeting on October 19, 2021 by the following vote: AYES: 5 Council Members: Larios, Lopez, Merlo, Davis, Ybarra NOES: 0 ABSENT: 0 ABSTAIN: 0 ________________________________ LISA POPE, City Clerk (seal) APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $1,973,5813,249,504 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: $2,473,0803,205,680 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($964,168423,714) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($33,81130,942) 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 $24,97135,959 for calendar year 20212. Vernon’s Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,119,215 MWhs. All of Vernon’s transmission facilities and Entitlements placed under the ISO’s Operational Control are High Voltage Facilities as defined by the ISO Tariff. The TRBAA will be recalculated annually consistent with the ISO Tariff approved by the Vernon City Council, and provided to the ISO. (;+,%,7$ Resolution No. 2021-33 Page 4 of 14 ________________________ APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $3,249,504 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: $3,205,680 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($423,714) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($30,942) 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 $35,959 for calendar year 2022. Vernon’s Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,119,215 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. Resolution No. 2021-33 Page 5 of 14 ________________________ {D0465763.DOC / 1} CITY OF VERNON PUBLIC UTILITIES DEPARTMENT REPORT REGARDING THE ESTABLSHMENT OF A REVISED TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR CALENDAR YEAR 2022 October 19, 2021 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 revised TRBAA based on the requirements of the TO Tariff and the ISO Tariff. (;+,%,7% Resolution No. 2021-33 Page 6 of 14 ________________________ TRBAA Report 2021 Page 2 of 5 {D0465763.DOC / 1} SUMMARY Section 5.2 of the Vernon TO Tariff identifies the items to be reflected in the TRBAA 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 Resolution No. 2021-33 Page 7 of 14 ________________________ TRBAA Report 2021 Page 3 of 5 {D0465763.DOC / 1} summary of the elements of the Vernon TRBAA proposed to be effective January 1, 2022 is shown in Exhibit 1. It shows that the balance in the Vernon TRBA as of September 30, 2021, which reflects services rendered through June 30, 2021, is negative $24,113, including interest. TRCs are projected to be negative $11,846. Taken together, these items sum up to a TRBAA to be effective for the twelve months starting January 1, 2022 of negative balance of $35,959. 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 REVISED TRBAA The TRBAA is equal to the sum of: TRCF + TRCT + I. The balance in the TRBA of a negative $24,113 as of September 30, 2021 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, 2020 and ending September 30, 2021. A summary of the determination of the September 30, 2021 balance in the Vernon TRBA is shown in Exhibit 2. The TRCT component reflects 1) the previously projected 2020 TRCs for Vernon of $8,634 or $719.54 per month, for the months October through December 2020, and 2) projected 2021 TRCs of negative $24,971.40, or $2,080.95 per month, for the months January through September 2021—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 Resolution No. 2021-33 Page 8 of 14 ________________________ TRBAA Report 2021 Page 4 of 5 {D0465763.DOC / 1} 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 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, 2021 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, 2021. 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 2022. These forecast TRCs reflect projected wheeling revenues. Wheeling revenues, which correspond to ISO Charge Type 384, are projected to be a credit or negative $11,845.91, as shown in Exhibit 3. These projections are based on the accruals for services provided during the twelve- month period ending June 30, 2021, which are reflected in the ISO’s invoices to Vernon through September 30, 2021. A summary of the monthly accruals for the twelve months ending September 30, 2021 is shown in Exhibit 4. Resolution No. 2021-33 Page 9 of 14 ________________________ TRBAA Report 2021 Page 5 of 5 {D0465763.DOC / 1} 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 through June 30, 2021. In particular, Vernon received $87.53 in the month of November 2020 and $5,402.29 in the month of August 2021 for projects withdrawn through June 30, 2021. 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 revised calculated TRBAA of a negative $35,959, 2. Approve replacing the existing TRBAA of negative $24,971 with the revised TRBAA for 2022 of a negative $35,959. 3.Approve the attached revised Appendix I of Vernon’s TO Tariff refle cting the TRBAA of negative $35,959. 4. Authorize outside counsel to submit Vernon’s TRBAA and supporting documentation, such as this Report and the City Council Resolution approving the revised TRBAA to FERC. Resolution No. 2021-33 Page 10 of 14 ________________________ 75%$$5HSRUW ([KLELW $% & ' ( ) * + , &,7<2)9(5121 75$160,66,215(9(18(%$/$1&,1*$&&2817$'-8670(1775%$$ &$/(1'$5<($5 '(6&5,37,21 727$/ >@ %DODQFHLQ75%$RQ6HSWHPEHU LQFOXGLQJLQWHUHVW >@ )RUHFDVW7UDQVPLVVLRQ5HYHQXH&UHGLWV >@ 75%$$ 6RXUFH >@ ([KLELW&ROXPQ2/LQH1R >@ ([KLELW&ROXPQ)/LQH1R Resolution No. 2021-33 Page 11 of 14 ________________________ TRBAA Report 2022Exhibit 2123456789101112131415161718192021222324252627AB CDEFGHIJKLMNOCITY OF VERNONTRANSMISSION REVENUE BALANCING ACCOUNTfor Calendar Year 2022 TRBAAPRODUCTOctober November December January February March April May June July August SeptemberTYPE CODE2020 2020 2020 2021 2021 2021 2021 2021 2021 2021 2021 2021[1]BEGINNING BALANCE ($18,057.61) ($19,968.03) ($21,104.84) ($22,313.00) ($20,369.97) ($19,735.07) ($17,910.55) ($16,070.30) ($14,540.01) ($17,161.26) ($22,685.37)($26,006.71)[2]AUTHORIZED REVENUE/ TRBAA CREDITS($719.54) ($719.54) ($719.54) $2,080.95 $2,080.95 $2,080.95 $2,080.95$2,080.95 $2,080.95 $2,080.95 $2,080.95$2,080.95[3]HIGH VOLTAGE WHEELING REVENUEDUE TO384 ($1,190.88) ($329.74) ($322.94) ($137.92) ($1,446.05) ($93.56) ($240.70) ($550.66) ($4,571.98) ($7,605.06) $0.00$0.00[4]Distribution of Non-Refundable Interconnection Amounts$0.00($87.53)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00($5,402.29)$0.00[5]Under(Over) Collection($1,910.42) ($1,136.81) ($1,042.48) $1,943.03 $634.90 $1,987.39 $1,840.25 $1,530.29 ($2,491.03) ($5,524.11) ($3,321.34) $2,080.95[6]ENDING BALANCE($19,968.03) ($21,104.84) ($22,147.32) ($20,369.97) ($19,735.07) ($17,747.68) ($16,070.30) ($14,540.01) ($17,031.04) ($22,685.37) ($26,006.71) ($23,925.76)[7]AVERAGE BEG/END BALANCE($19,012.82) ($20,536.43) ($21,626.08) ($21,341.48) ($20,052.52) ($18,741.37) ($16,990.42) ($15,305.15) ($15,785.52) ($19,923.31) ($24,346.04) ($24,966.24)[8]INTEREST RATE3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%[9]INTEREST($51.49) ($55.62) ($58.57) ($57.80) ($54.31) ($50.76) ($46.02) ($41.45) ($42.75) ($53.96) ($65.94) ($67.62)[10]ENDING BALANCE($20,019.52) ($21,160.46) ($22,205.89) ($20,427.77) ($19,789.38) ($17,798.44) ($16,116.31) ($14,581.46) ($17,073.79) ($22,739.33) ($26,072.65) ($23,993.38)[11]INTERST FOR JULY ($53.96)[12]INTERST FOR AUGUST ($65.94)[13]ENDING BALANCE ($24,113.27)Copy of Vernon TRBAA CY 2022Resolution No. 2021-33 Page 12 of 14 ________________________ TRBAA Report 2022 Exhibit 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2627 28 29 30 31 32 33 34 AB C D E F G CITY OF VERNON FORECAST TRANSMISSION CREDITS for Calendar Year 2022 TRBAA MONTH Wheeling Total [1]January-22 ($987.16) ($987.16) [2]February-22 ($987.16) ($987.16) [3]March-22 ($987.16) ($987.16) [4]April-22 ($987.16) ($987.16) [5]May-22 ($987.16) ($987.16) [6]June-22 ($987.16) ($987.16) [7]July-22 ($987.16) ($987.16) [8]August-22 ($987.16) ($987.16) [9]September-22 ($987.16) ($987.16) [10]October-22 ($987.16) ($987.16) [11]November-22 ($987.16) ($987.16) [12]December-22 ($987.16)($987.16) [13]Total ($11,845.91) ($11,845.91) Resolution No. 2021-33 Page 13 of 14 ________________________ TRBAA Report 2022Exhibit 412345678910111213141516171819202122232425AB C D EFGHIVernon Historical Transmission Creditsfor Calendar Year 2022 TRBAAWheeling RevenuesISO INVOICEMonth CT 384Final Adjustments Total[1] July-20($1,190.88)($1,190.88)[2] August-20($329.74)($329.74)[3] September-20($322.94)($322.94)[4] October-20($137.92)($137.92)[5] November-20($1,446.05)($1,446.05)[6] December-20($93.56)($93.56)[7] January-21($240.70)($240.70)[8] February-21($550.66)($550.66)[9] March-21($4,571.98)($4,571.98)[10] April-21($7,605.06)($7,605.06)[11] May-21$0.00$0.00[12] June-21$0.00$0.00[13] ($16,489.49)Resolution No. 2021-33 Page 14 of 14 ________________________ City Council Agenda Item Report Agenda Item No. COV-808-2021 Submitted by: Adriana Ramos Submitting Department: Public Utilities Meeting Date: October 19, 2021 SUBJECT Transmission Revenue Requirement and Transmission Revenue Balancing Account Adjustment for 2022 Recommendation: A. Adopt Resolution No. 2021-32 adopting a revised Transmission Revenue Requirement for 2022 in accordance with Vernon's Transmission Owner Tariff and providing for Tariff Sheet changes to implement the adjustment; and B. Adopt Resolution No. 2021-33 establishing a Transmission Revenue Balancing Account Adjustment for 2022 in accordance with Vernon’s Transmission Owner Tariff and providing for Tariff Sheet changes to implement the adjustment. Background: The City of Vernon is a Scheduling Coordinator and a Participating Transmission Owner (PTO) in the California Independent System Operator Corporation (CAISO). To participate in the CAISO, PTOs are required to turn over administrative control of their transmission facilities and entitlements to the CAISO. 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. These calculations are known as Transmission Revenue Requirements (TRRs). The relationship between PTOs and the CAISO 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). 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 CAISO uses to calculate its grid-wide Transmission Access Charge (TAC) rates, which is related to the City’s ability to recover its full TRR. At present, the City’s high voltage transmission entitlements 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 (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. The TRR Report, attached as an exhibit to the resolution, supports the establishment of a revised transmission revenue requirement associated with Vernon’s high voltage entitlements. Further, pursuant to Section 5.2 of the TO Tariff, the City 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 CAISO open access transmission tariff (CAISO Tariff) customers via annual update filings at the FERC by PTOs. Appendix F, Schedule 3, Section 6.1(b), of the CAISO Tariff describes the annual TRBAA calculation as “a dollar amount based on the projected Transmission Revenue Credits as adjusted for the true-up of the prior year’s difference between projected and actual credits.” The TRBAA Report, attached as an exhibit to the resolution, supports the establishment of a revised TRBAA for 2022, based on the requirements of the TO Tariff and the CAISO Tariff. Pursuant to Government Code Section 54354.5, the public hearing notice was posted at City Hall on September 22, 2021 and published in the Los Angeles Wave (Huntington Park Bulletin) on September 30 and October 7, 2021 (Attachment 3). Fiscal Impact: The City will recover incurred costs of the Existing Transmission Service Contracts. Attachments: 1. Resolution No. 2021-32 2. Resolution No. 2021-33 3. Notice of Public Hearing RESOLUTION NO. 2021-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ADOPTING A REVISED TRANSMISSION REVENUE REQUIREMENT FOR 2022 IN ACCORDANCE WITH VERNON’S TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF SHEET CHANGES TO IMPLEMENT THE ADJUSTMENT SECTION 1. Recitals. A.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. B.The City is a Participating Transmission Owner (PTO) with the California Independent System Operator Corporation (CAISO), and the Federal Energy Regulatory Commission (FERC) has approved its existing Transmission Owner Tariff (TO Tariff). C.The CAISO reimburses the City according to the City’s current Transmission Revenue Requirement (TRR) in return for the City turning over to the CAISO the operation and control of the City’s transmission entitlements. D.Each PTO must include in its TO Tariff its Gross Load, which the CAISO uses to calculate its grid-wide Transmission Access Charge (TAC) rates, and which is related to the City’s ability to recover its full TRR. E.The City’s transmission entitlements include rights under certain contracts (each an “ETC”) including (i) an agreement with the City of Los Angeles Department of Water and Power entitled “Los Angeles-Vernon Adelanto-Victorville-Lugo Firm Transmission Service Agreement” (LAWDP ETC); (ii) an agreement with Southern California Edison Company (SCE) entitled “Amended and Restated Edison- Vernon Victorville-Lugo Firm Transmission Service Agreement” (SCE Victorville- Lugo ETC); and (iii) an agreement with SCE entitled “Amended and Restated Edison-Vernon Mead Firm Transmission Services Agreement” (SCE Mead ETC). F. The City’s costs under the LADWP ETC, the SCE Victorville-Lugo ETC, and the SCE Mead ETC have traditionally been based upon a negotiated fixed “path- specific” rate charged by LADWP or SCE, based on the actual costs of the specific transmission lines made available under each ETC, multiplied by the amount of transmission capacity guaranteed to the City under each ETC. G. On August 1, 2008, SCE filed a petition with FERC seeking to amend the pricing structure under the SCE Victorville-Lugo ETC and the SCE Mead ETC to replace the negotiated path-specific rates set forth in those ETCs with a “postage-stamp” Resolution No. 2021-32 Page 2 of 15 _______________________ rate which reflects the blended rate SCE charges to the CAISO for the actual usage of all of SCE’s transmission lines by customers of the CAISO. H. The postage-stamp rate which SCE charges to the CAISO is derived from SCE’s TRR and, therefore, will change each time SCE amends its TRR. I. On September 30, 2008, FERC accepted, subject to refund and hearing and settlement procedures, SCE’s proposed revisions under the SCE Victorville-Lugo ETC and the SCE Mead ETC to replace the negotiated path-specific rates set forth in those ETCs with a postage-stamp rate, and thus the City’s costs under the SCE Victorville-Lugo ETC and the SCE Mead ETC will vary proportionately with any changes in SCE’s TRR. J. The City reached a settlement agreement (SCE Settlement) with SCE to amend the SCE Victorville-Lugo ETC and the SCE Mead ETC to replace the path-specific rates set forth in those ETCs with SCE’s postage stamp rate after a phase-in period that began on August 1, 2009, during which the City’s path-specific rates in those ETCs are gradually stepped-up over three years (the “Phase-In Rates”) until the path-specific rates are equal to SCE’s postage-stamp rate as of January 1, 2013. K. Under the SCE Settlement, the City’s costs for the SCE Victorville-Lugo ETC and the SCE Mead ETC are equal to (i) from August 1, 2009, until December 31, 2012, the Phase-In Rates, and beginning on January 1, 2013, the SCE postage-stamp rate, in each case multiplied by (ii) the amount of transmission capacity guaranteed to the City under each ETC. L. FERC approved the SCE Settlement pursuant to an order issued September 11, 2009, 128 FERC 61,237 (2009), in FERC Docket Nos. ER08-1343-000, ER08- 1353-000, ER09-187-000, ER09-187-001, EL09-19-000, and ER09-446-000 (SCE Settlement Order). M. On behalf of the City, the Brattle Group, an experienced utilities consulting firm, developed a tracking mechanism for the City’s TRR (TRR Tracking Mechanism) to allow the City’s TRR to be adjusted annually, effective January 1 of each year, to reflect changes in the City’s costs under the SCE Victorville-Lugo ETC and the SCE Mead ETC that change as a result of (i) the stepped-up rates implemented between August 1, 2009 and December 31, 2012; or (ii) any change in SCE’s TRR on or after January 1, 2013. N. On the basis of The Brattle Group’s analysis and evidence from City staff, which was considered during a public meeting of the City Council held on July 13, 2009, the City, on July 15, 2009 (July 15 FERC Filing), filed with FERC proposed revisions to its TO Tariff proposing stated TRRs for each of the years 2010 to 2012, Resolution No. 2021-32 Page 3 of 15 _______________________ which dollar amounts were also included in the SCE Settlement (TO Tariff Revisions). O. The City also submitted in the July 15 FERC Filing a request to utilize an “ETC Adjustment Clause” to automatically adjust each year the costs the City incurs attributable to any changes in SCE’s TRR associated with SCE’s High Voltage Existing Contracts Access Charge (HVECAC) rate. P. FERC approved the City’s request to utilize an ETC Adjustment Clause to reflect annual projected changes to SCE’s TRR, in an order issued September 11, 2009, 128 FERC ¶ 61,235 (2009), in FERC Docket No. EL09-64-000 (TO Tariff Order). Q. Under the TO Tariff Order, the City’s TO Tariff revisions went into effect on August 1, 2009. R. On January 6, 2015, the City approved revisions to the template used to calculate the annual ETC Adjustment Clause. S. On April 8, 2015, FERC approved the City’s 2015 filing with FERC reflecting modifications to the base TRR as calculated using the revised ETC Adjustment Clause template. T. On October 15, 2019, the City approved revisions to the Gross Load included in the City’s TO Tariff that updated the Gross Load to be based on a fiscal year 2019 test year, rather than 2016 actual load data. U. On December 20, 2019, FERC approved the City’s 2019 filing with FERC reflecting revisions to the Gross Load included in the City’s TO Tariff. V. The City is required under the TO Tariff Order to submit annual filings with FERC reflecting modifications to the base TRR. W. A Notice of Public Hearing was published on September 30, 2021 and October 7, 2021, notifying all interested parties that a hearing to consider evidence to establish the City’s revised TRR was scheduled for October 19, 2021 at 9:00 am, subject to the hearing being continued or adjourned to a stated time and place without further notice of public hearing. X. On October 19, 2021, the City Council held a Public Hearing in which the City Council took evidence from staff and those other persons in attendance who wished to be heard on the calculation of the City’s revised TRR. Y. The TRR for 2022 is shown in the amended Appendix I to the TO Tariff, a copy of which is attached hereto as Exhibit A and made a part hereof. Resolution No. 2021-32 Page 4 of 15 _______________________ Z. The Public Utilities Department has prepared a Report, dated October 19, 2021, with exhibits, a copy of which is attached hereto as Exhibit B and made a part hereof, which reiterates its previous conclusions that the TRR and ETC Adjustment Clause mechanism developed by The Brattle Group, approved by FERC under the amended TO Tariff, and revised in 2015 are reasonable and which calculates the amount derived under the ETC Adjustment Clause for 2022. AA. The Public Utilities Department has recommended the City adopt the TRR shown in the amended Appendix I to the TO Tariff, attached as Exhibit A, to be effective on January 1, 2022. BB. The City Council has heard and considered all evidence, written and oral, presented in consideration of the establishment of the City’s revised TRR. 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 further finds and determines that all persons have had the opportunity to be heard or to file written comments to the proposed adoption of the City’s TRR, and after due consideration of any and all evidence submitted at the Public Hearing, determines there are compelling reasons to justify the adoption of the City’s TRR, to be effective January 1, 2022. SECTION 4. The City Council of the City of Vernon hereby declares that: (a) any determination made pursuant to this Resolution regarding the validity or reasonableness of any portion of any TRR or TO Tariff shall apply only prospectively from the date of this Resolution; and (b) in no way shall this Resolution affect the City Council’s adoption or determination of any previous TRR or TO Tariff. SECTION 5. The City Council of the City of Vernon hereby approves, pursuant to the TO Tariff and to be effective on January 1, 2022, the establishment of the City’s revised TRR and Appendix I to the TO Tariff implementing the revised TRR, as described in the Public Utilities Department Report dated October 19, 2021. SECTION 6. The City Council of the City of Vernon hereby authorizes outside counsel to submit the City’s TRR, the amended Appendix I to the Vernon TO Tariff, and supporting documentation, such as the Report, and this City Council Resolution approving the revised TRR, to FERC on behalf of the City of Vernon. Resolution No. 2021-32 Page 5 of 15 _______________________ SECTION 7. 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 19th day of October, 2021. _________________________ MELISSA YBARRA, Mayor ATTEST: ________________________ LISA POPE, City Clerk (seal) APPROVED AS TO FORM: ________________________ ZAYNAH N. MOUSSA, Interim City Attorney APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $1,973,5813,249,504 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: $2,473,0803,205,680 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($964,168423,714) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($33,81130,942) 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 $24,97135,959 for calendar year 20212. Vernon’s Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,119,215 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 A Resolution No. 2021-32 Page 6 of 15 ________________________ APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $3,249,504 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: $3,205,680 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($423,714) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($30,942) 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 $35,959 for calendar year 2022. Vernon’s Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,119,215 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. Resolution No. 2021-32 Page 7 of 15 ________________________ {D0465787.DOC / 1} CITY OF VERNON PUBLIC UTILITIES DEPARTMENT REPORT REGARDING THE ADOPTION OF A REVISED TRANSMISSION REVENUE REQUIREMENT ASSOCIATED WITH VERNON’S HIGH VOLTAGE ENTITLEMENTS October 19, 2021 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 (“TO 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 full 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 EXHIBIT B Resolution No. 2021-32 Page 8 of 15 ________________________ TRR Report 2022 Page 2 of 6 {D0465787.DOC / 1} 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 kV 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. On August 1, 2008, SCE proposed to increase its TRR and associated rates in FERC Docket No. ER08-1343-000. In a related filing submitted in FERC Docket No. ER08-1353-000, SCE proposed to transition both of its ETCs with Vernon from their current, fixed “path-specific” rates to a so-called “postage stamp” rate methodology which reflects the blended rate which SCE charges the ISO pursuant to its own TRRs for the actual usage of all of SCE’s transmission facilities by customers of the ISO (the “HVECAC Rate”). The HVECAC Rate that SCE proposed in its TO Tariff is derived from SCE’s TRR and, therefore, will change each time SCE amend s its TRR. On September 30, 2008, FERC accepted, subject to refund and hearing and settlement procedures, SCE’s proposed revisions to its TO Tariff to transition the negotiated path-specific rates set forth in the SCE Victorville-Lugo ETC and the SCE Mead ETC to the uniform HVECAC Rate, and thus the City’s costs under those ETCs will vary proportionately with any changes in SCE’s TRR. The City reached a settlement agreement (the “SCE Settlement”) with SCE to amend the SCE Victorville-Lugo ETC and the SCE Mead ETC to fully transition the path-specific rates set forth in those ETCs to SCE’s HVECAC Rate after a phase -in period that began on August 1, 2009, during which the City’s path -specific rates in Resolution No. 2021-32 Page 9 of 15 ________________________ TRR Report 2022 Page 3 of 6 {D0465787.DOC / 1} those ETCs have been gradually stepped-up under incrementally increasing fixed rates (the “Phase-In Rates”) until the path-specific rates are equal to the HVECAC Rate as of January 1, 2013. FERC approved the SCE Settlement pursuant to an order issued September 11, 2009, 128 FERC ¶ 61, 237 (2009), in FERC Docket Nos. ER08-1343-000, ER08-1353-000, ER09-187-000, ER09-187-001, EL09-19- 000, and ER09-446-000 (“SCE Settlement Order”). On behalf of the City, The Brattle Group, an experienced utilities consulting firm, developed a TRR tracking mechanism clause for the City’s TRR (“ETC Adjustment Clause”), which allows the City’s TRR to be adjusted annually, effective January 1 of each year, to reflect changes in the City’s transmission expenses associated with any changes implemented by SCE in the HVECAC Rate associated with the SCE Victorville-Lugo ETC and the SCE Mead ETC. On the basis of The Brattle Group’s analysis and evidence from City staff, which was considered during a public meeting of the City Council held on July 13, 2009, the City, on July 15, 2009 (“July 15 FERC Filing”), filed with FERC the proposed (i) revisions to its TO Tariff proposing the City’s stated TRRs for each of the years 2010 to 2012, which dollar amounts were also included in the SCE Settlement (“TO Tariff Revisions”) and (ii) the ETC Adjustment Clause tracking mechanism. The July 15 FERC Filing acknowledged that, to the extent that the SCE Settlement was accepted, because the stated Phase-In Rates would be fixed, the ETC Adjustment Clause for the term of the Phase-In Rates would be zero. FERC approved the City’s July 15 FERC Filing, including the TO Tariff Revisions, the City’s proposed calculations of the TRR for years 2010 to 2012, and the City’s request to utilize an ETC Adjustment Clause, in an order issued September 11, 2009, 128 FERC ¶ 61,235 (2009), in FERC Docket No. EL09-64-000 (“TO Tariff Order”). The City is required under the TO Tariff Order to submit annual filings each year with FERC reflecting annual modifications to the base TRR of the City. Resolution No. 2021-32 Page 10 of 15 ________________________ TRR Report 2022 Page 4 of 6 {D0465787.DOC / 1} In January 2015, the City approved revisions to the template used to calculate the ETC Adjustment Clause and submitted these revisions to FERC. On April 8, 2015, FERC approved the City’s 2015 TRR filing as calculated using the revised ETC Adjustment Clause template. For this filing, the template has been revised to account for prior year authorized ETC adjustment amounts; the City has prepared this year’s filing using the revised template. CALCULATION OF THE ETC ADJUSTMENT CLAUSE Section 5.3 of the Vernon TO Tariff identifies the items to be reflected in the ETC Adjustment. The ETC Adjustment Clause shall be calculated as: ETC Adjustment = ETCCF+ ETCCT+ I. ETCCF = The forecast of SCE ETC Cost for the following calendar year ETCCT = The balance representing the prior period difference between the projected cost of the SCE ETCs (“SCE ETC Cost”) and the actual cost. I = The interest balance for the ETC, 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 ETC true-up balance each month, compounded quarterly. A summary of the elements of the Vernon ETC Adjustment Clause proposed to be effective January 1, 2022 is shown in Exhibit 1. The ETC Adjustment Clause to be effective for the twelve months starting January 1, 2022 is $2,751,024. The ETCCF Component The ETCCF component stands for the forecast of SCE ETC costs for the following calendar year, in this case 2022. These forecast SCE ETC costs reflect 2022 rates from Southern California Edison Company’s draft FERC Filing, posted on its website pursuant to its formula rate protocols (approved in FERC Docket No. ER11-3697). Resolution No. 2021-32 Page 11 of 15 ________________________ TRR Report 2022 Page 5 of 6 {D0465787.DOC / 1} That filing is scheduled to be made at FERC, in its final form, in November 2021; Vernon will true up any differences in its SCE ETC costs when it makes its 20 23 TRR filing. The ETCCF for 2022 SCE ETC costs are projected to be $3,205,680 as shown in line 7 of Exhibit 1. The ETCCT Component ETCCT represents a balance that reflects the difference between prior year forecast and actual SCE ETC costs. The prior period in this case is the twelve-month period starting October 1, 2020 and ending September 30, 2021. A summary of the determination of the September 30, 2021 balance in the ETC Adjustment Clause is shown in Exhibit 1. The ETCCT component reflects 1) the previously projected 2020 SCE ETC costs of $250,120 per month, for the months October through December 2020 and projected 2021 SCE ETC costs of $206,090 per month, for the months January through September 2021, 2) actual 2020 SCE ETC costs of $ 179,820 per month, for the months October through December 2020 and $199,800 per month, for the months January through September 2021, 3) refunds received by the City, 4) prior year authorized ETC adjustment of $30,397 per month for the months October through December 2020 and $82,465 per month for the months January through September 2021 —all elements as reflected on Line No. 8, 15, 16 and 17 of Exhibit 1. The net of these elements produce the under (or over) collection figures reflected in Line 18 of Exhibit 1. The ending balance is the (over)/under collection –as reflected on Line 19 of Exhibit 1. The cumulative monthly balances are carried forward from month to month and the ETCCT component on September 30, 2021 of negative $423,714 is shown in line 20 of Exhibit 1. The I (Interest) Component The Interest component reflects interest on the difference between prior year forecast and actual SCE ETC costs. The monthly interest carrying costs are calculated using the 18 C.F.R. § 35.19(a) interest rates and calculation method. Resolution No. 2021-32 Page 12 of 15 ________________________ TRR Report 2022 Page 6 of 6 {D0465787.DOC / 1} These interest rates are published by FERC and reflect the prime rate values published in the Federal Reserve Bank’s “Selected Interest Rates.” Interest is calculated monthly on the average cumulative monthly balance and is compounded quarterly. The interest component is negative $30,942 as shown in Lines 21-25 of Exhibit 1. RECOMMENDATIONS 1. Approve the establishment of a revised TRR for 2022 and revised Appendix I to the TO Tariff. 2. Authorize outside counsel to submit the City’s TRR, ETC Adjustment Clause amount, the revised Appendix I to the TO Tariff, and this City Council Resolution approving the TRR and ETC Adjustment Clause amount to FERC on behalf of the City of Vernon. Resolution No. 2021-32 Page 13 of 15 ________________________ EXHIBIT 1 2022 ETC Adjustment Clause Interest on True-UP Only 2020 2021 Total MW October November December January February March April May June July August September October November December [1]Beginning Balance ($989,579) [2]Projected Rates ($/kW-month)Prior Year Projected / Amount in Base TRR [3]SCE Mead-Laguna Bell 6.76 6.76 6.76 5.57 5.57 5.57 5.57 5.57 5.57 5.57 5.57 5.57 [4]SCE Victorville-Lugo 6.76 6.76 6.76 5.57 5.57 5.57 5.57 5.57 5.57 5.57 5.57 5.57 [5]Projected SCE ETC Expense ($) [6]SCE Mead-Laguna Bell 26 175,760 175,760 175,760 144,820 144,820 144,820 144,820 144,820 144,820 144,820 144,820 144,820 [7]SCE Victorville-Lugo 11 74,360 74,360 74,360 61,270 61,270 61,270 61,270 61,270 61,270 61,270 61,270 61,270 [8]Total 250,120 250,120 250,120 206,090 206,090 206,090 206,090 206,090 206,090 206,090 206,090 206,090 [9]Actual Rates ($/kW-month) Prior Year Actual [10]SCE Mead-Laguna Bell 4.86 4.86 4.86 5.40 5.40 5.40 5.40 5.40 5.40 5.40 5.40 5.40 [11]SCE Victorville-Lugo 4.86 4.86 4.86 5.40 5.40 5.40 5.40 5.40 5.40 5.40 5.40 5.40 [12] Actual SCE ETC Expense ($) [13]SCE Mead-Laguna Bell 26 126,360 126,360 126,360 140,400 140,400 140,400 140,400 140,400 140,400 140,400 140,400 140,400 [14]SCE Victorville-Lugo 11 53,460 53,460 53,460 59,400 59,400 59,400 59,400 59,400 59,400 59,400 59,400 59,400 [15]Total 179,820 179,820 179,820 199,800 199,800 199,800 199,800 199,800 199,800 199,800 199,800 199,800 [16]Refund Received $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 [17]Prior Year Authorized ETC Adjustment $30,397 $30,397 $30,397 $82,465 $82,465 $82,465 $82,465 $82,465 $82,465 $82,465 $82,465 $82,465 [18] Difference (Over)/Under Collection ($)(39,903)(39,903)(39,903)76,175 76,175 76,175 76,175 76,175 76,175 76,175 76,175 76,175 0 0 0 [19]Ending Balance (1,029,482)(39,903)(39,903)76,175 76,175 76,175 76,175 76,175 76,175 76,175 76,175 76,175 [20] Cumulative (Over)/Under Collection ($)(1,029,482)(1,069,385)(1,109,288)(1,033,113)(956,938)(880,763)(804,588)(728,414)(652,239)(576,064)(499,889)(423,714)(423,714)(423,714)(423,714)(423,714) [21] Annual Interest Rate (18 C.F.R. Section 35.19a)3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25% . [22] Monthly Interest Rate (18 C.F.R. Section 35.199a)0.28%0.27%0.28%0.28%0.25%0.28%0.27%0.28%0.27%0.28%0.28%0.27%0.28%0.27%0.28% [23] Average Monthly Interest Accrued on Cumulative (Over)/Under Collection ($)(2,842)(2,803)(3,007)(2,957)(2,481)(2,536)(2,251)(2,116)(1,844)(1,695)(1,485)(1,234)(1,170)(1,132)(1,170) [24]Quarterly Interest Balance ($)(8,652)(7,974)(6,211)(4,414)(3,471) [25] Total Monthly Interest on Cumulative Balance (Over)/Under Collection w/ Quarterly Compounding ($)(2,842)(2,803)(3,007)(2,981)(2,502)(2,560)(2,272)(2,138)(1,865)(1,712)(1,502)(1,250)(1,182)(1,144)(1,182)(30,942) [26]Ending Balance on September 30, 2020 (451,149) Sources and Notes: [2],[9]: 2020 rates from Southern California Edison Company FERC Filing, Docket No. ER19-1553-___ (TO2020) Draft Annual Update; 2021 rates from Southern California Edison Company FERC Filing, Docket No. ER19-1553-___ (TO2021) Draft Annual Update; 2022 rates from Souther California Edison Company FERC Filing, Docket No. ER18-169-___ (TO2022) Draft Annual Update; [6],[7]:Calculated as ETC Capacity x $/kW-month rate x 1,000 kW/MW. [13],[14]:Calculated as ETC Capacity x $/kW-month rate x 1,000 kW/MW. [16]Refund received [18]:[15] - [8] + [16]+[17] [19] [18]+[1] [20]:Cumulative of [19]. [21]:Prime rate as listed on FERC website available from: http://www.ferc.gov/enforcement/acct-matts/interest-rates.asp. [22]:[20]/365 days x number of days in month. [23]:(Average of cumulative balance in current and prior month) x [22]. [24]:Sum of the interest in [23] per every three months. [25]:(Average of cumulative balance in current and prior month + cumulative quarterly interest in [24] from prior quarters) x [22]. [26]September 30 balance of [20] + sum of [25] through September 30 [27]:Projected 2022 SCE ETC costs from Total in [8]. [28]:From [18]. [29]:From [23], including interest accrued between October 1, 2020 and January 1, 2021. 12 Month True-Up Period from October 1, 2020 - September 30, 2021 Resolution No. 2021-32 Page 14 of 15 ________________________ Projected 2022 Total January February March April May June July August September October November December Projected 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 187,720 187,720 187,720 187,720 187,720 187,720 187,720 187,720 187,720 187,720 187,720 187,720 79,420 79,420 79,420 79,420 79,420 79,420 79,420 79,420 79,420 79,420 79,420 79,420 267,140 267,140 267,140 267,140 267,140 267,140 267,140 267,140 267,140 267,140 267,140 267,140 3,205,680 2021 ETC Adjustment Clause [27]Component I: 2020 Projected SCE ETC Costs 3,205,680 [28]Component II: Cumulative (over)/Under Collection ($)-423,714 [29]Component III: Interest on Cumulative (Over)/Under Collection w/ Quarterly Compounding ($)-30,942 [30]Total 2,751,024 2020 rates from Southern California Edison Company FERC Filing, Docket No. ER19-1553-___ (TO2020) Draft Annual Update; 2021 rates from Southern California Edison Company FERC Filing, Docket No. ER19-1553-___ (TO2021) Draft Annual Update; 2022 rates from Souther California Edison Company FERC Filing, Docket No. ER18-169-___ (TO2022) Draft Annual Update; Resolution No. 2021-32 Page 15 of 15 ________________________ RESOLUTION NO. 2021-33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING A TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR 2022 IN ACCORDANCE WITH VERNON’S TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF SHEET CHANGES TO IMPLEMENT THE ADJUSTMENT SECTION 1. Recitals. A. 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. B. The City is a Participating Transmission Owner (“PTO”) with the California Independent System Operator Corporation, a California nonprofit public benefit corporation (“CAISO”). C. The CAISO requires a PTO to turn over operational control of its transmission facilities and entitlements to the CAISO. D. 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. E. 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”). F. In order to ensure that all Transmission Revenue Credits flow 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. G. A Notice of Public Hearing was published on September 30, 2021 and October 7, 2021, notifying all interested parties that a hearing to consider evidence to establish the City’s revised TRBAA for 2022 was scheduled for October 19, 2021 at 9:00 am, subject to the hearing being continued or adjourned to a stated time and place without further notice of public hearing. H. A Public Hearing was held on October 19, 2021, 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 revised TRBAA. Resolution No. 2021-33 Page 2 of 14 _______________________ I. The Public Utilities Department has prepared a Report, with exhibits, dated on or about October 19, 2021 (“Report”), which determines the revised TRBAA for 2022 to be consistent with the TO Tariff and supports the TRBAA and the changes to Appendix I of the TO Tariff to implement the revised TRBAA effective January 1, 2022. J. The Public Utilities Department has recommended that the TRBAA and Appendix I to the TO Tariff implementing the revised TRBAA be approved. K. The City Council has heard and considered all evidence, both written and oral, presented in consideration of the establishment of the City’s revised TRBAA and revised Appendix I to the TO Tariff implementing the revised TRBAA. 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 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 revised TRBAA and amended Appendix I to the TO Tariff implementing the revised 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 revised TRBAA for 2022 and amended Appendix I to the TO Tariff implementing the revised TRBAA for 2022, 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, 2022, the establishment of the City’s revised TRBAA for 2022, and revised Appendix I to the TO Tariff implementing the revised TRBAA for 2022, 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 revised TRBAA for 2022, 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 the City of Vernon. / / / / / / Resolution No. 2021-33 Page 3 of 14 _______________________ SECTION 6. 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 19th day of October, 2021. _________________________ MELISSA YBARRA, Mayor ATTEST: ________ LISA POPE, City Clerk (seal) APPROVED AS TO FORM: ___________________________________ ZAYNAH N. MOUSSA, Interim City Attorney APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $1,973,5813,249,504 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: $2,473,0803,205,680 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($964,168423,714) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($33,81130,942) 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 $24,97135,959 for calendar year 20212. Vernon’s Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,119,215 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 A Resolution No. 2021-33 Page 4 of 14 ________________________ APPENDIX I Transmission Revenue Requirement and TRBAA The Vernon Base Transmission Revenue Requirement is $3,249,504 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: $3,205,680 Balance of Difference between prior year Forecast and Actual SCE ETC Costs: ($423,714) Interest on Difference between prior year Forecast and Actual SCE ETC Costs: ($30,942) 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 $35,959 for calendar year 2022. Vernon’s Gross Load, consistent with its TRR, used by the ISO to develop the Transmission Access Charge is 1,119,215 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. Resolution No. 2021-33 Page 5 of 14 ________________________ {D0465763.DOC / 1} CITY OF VERNON PUBLIC UTILITIES DEPARTMENT REPORT REGARDING THE ESTABLSHMENT OF A REVISED TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT FOR CALENDAR YEAR 2022 October 19, 2021 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 revised TRBAA based on the requirements of the TO Tariff and the ISO Tariff. EXHIBIT B Resolution No. 2021-33 Page 6 of 14 ________________________ TRBAA Report 2021 Page 2 of 5 {D0465763.DOC / 1} SUMMARY Section 5.2 of the Vernon TO Tariff identifies the items to be reflected in the TRBAA 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 Resolution No. 2021-33 Page 7 of 14 ________________________ TRBAA Report 2021 Page 3 of 5 {D0465763.DOC / 1} summary of the elements of the Vernon TRBAA proposed to be effective January 1, 2022 is shown in Exhibit 1. It shows that the balance in the Vernon TRBA as of September 30, 2021, which reflects services rendered through June 30, 2021, is negative $24,113, including interest. TRCs are projected to be negative $11,846. Taken together, these items sum up to a TRBAA to be effective for the twelve months starting January 1, 2022 of negative balance of $35,959. 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 REVISED TRBAA The TRBAA is equal to the sum of: TRCF + TRCT + I. The balance in the TRBA of a negative $24,113 as of September 30, 2021 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, 2020 and ending September 30, 2021. A summary of the determination of the September 30, 2021 balance in the Vernon TRBA is shown in Exhibit 2. The TRCT component reflects 1) the previously projected 2020 TRCs for Vernon of $8,634 or $719.54 per month, for the months October through December 2020, and 2) projected 2021 TRCs of negative $24,971.40, or $2,080.95 per month, for the months January through September 2021—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 Resolution No. 2021-33 Page 8 of 14 ________________________ TRBAA Report 2021 Page 4 of 5 {D0465763.DOC / 1} 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 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, 2021 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, 2021. 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 2022. These forecast TRCs reflect projected wheeling revenues. Wheeling revenues, which correspond to ISO Charge Type 384, are projected to be a credit or negative $11,845.91, as shown in Exhibit 3. These projections are based on the accruals for services provided during the twelve - month period ending June 30, 2021, which are reflected in the ISO’s invoices to Vernon through September 30, 2021. A summary of the monthly accruals for the twelve months ending September 30, 2021 is shown in Exhibit 4. Resolution No. 2021-33 Page 9 of 14 ________________________ TRBAA Report 2021 Page 5 of 5 {D0465763.DOC / 1} 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 th e 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 through June 30, 2021. In particular, Vernon received $87.53 in the month of November 2020 and $5,402.29 in the month of August 2021 for projects withdrawn through June 30, 2021. 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 revised calculated TRBAA of a negative $35,959, 2.Approve replacing the existing TRBAA of negative $24,971 with the revised TRBAA for 2022 of a negative $35,959. 3.Approve the attached revised Appendix I of Vernon’s TO Tariff reflecting the TRBAA of negative $35,959. 4.Authorize outside counsel to submit Vernon’s TRBAA and supporting documentation, such as this Report and the City Council Resolution approving the revised TRBAA to FERC. Resolution No. 2021-33 Page 10 of 14 ________________________ TRBAA Report 2022 Exhibit 1 1 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 AB C D E F G H I CITY OF VERNON TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT (TRBAA) CALENDAR YEAR 2022 DESCRIPTION TOTAL [1] Balance in TRBA on September 30, 2021 ($24,113) including interest [2]Forecast Transmission Revenue Credits ($11,846) [3] TRBAA ($35,959) Source: [4] Exhibit 2, Column O, Line No.13. [5] Exhibit 3, Column F, Line No.13. Resolution No. 2021-33 Page 11 of 14 ________________________ TRBAA Report 2022 Exhibit 2 1 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 A B C D E F G H I J K L M N O CITY OF VERNON TRANSMISSION REVENUE BALANCING ACCOUNT for Calendar Year 2022 TRBAA PRODUCT October November December January February March April May June July August September TYPE CODE 2020 2020 2020 2021 2021 2021 2021 2021 2021 2021 2021 2021 [1]BEGINNING BALANCE ($18,057.61)($19,968.03)($21,104.84)($22,313.00)($20,369.97)($19,735.07)($17,910.55)($16,070.30)($14,540.01)($17,161.26)($22,685.37)($26,006.71) [2]AUTHORIZED REVENUE/ TRBAA CREDITS ($719.54)($719.54)($719.54)$2,080.95 $2,080.95 $2,080.95 $2,080.95 $2,080.95 $2,080.95 $2,080.95 $2,080.95 $2,080.95 [3] HIGH VOLTAGE WHEELING REVENUE DUE TO 384 ($1,190.88)($329.74)($322.94)($137.92)($1,446.05)($93.56)($240.70)($550.66)($4,571.98)($7,605.06)$0.00 $0.00 [4] Distribution of Non-Refundable Interconnection Amounts $0.00 ($87.53)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ($5,402.29)$0.00 [5]Under(Over) Collection ($1,910.42)($1,136.81)($1,042.48)$1,943.03 $634.90 $1,987.39 $1,840.25 $1,530.29 ($2,491.03)($5,524.11)($3,321.34)$2,080.95 [6]ENDING BALANCE ($19,968.03)($21,104.84)($22,147.32)($20,369.97)($19,735.07)($17,747.68)($16,070.30)($14,540.01)($17,031.04)($22,685.37)($26,006.71)($23,925.76) [7]AVERAGE BEG/END BALANCE ($19,012.82)($20,536.43)($21,626.08)($21,341.48)($20,052.52)($18,741.37)($16,990.42)($15,305.15)($15,785.52)($19,923.31)($24,346.04)($24,966.24) [8]INTEREST RATE 3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25%3.25% [9]INTEREST ($51.49)($55.62)($58.57)($57.80)($54.31)($50.76)($46.02)($41.45)($42.75)($53.96)($65.94)($67.62) [10]ENDING BALANCE ($20,019.52)($21,160.46)($22,205.89)($20,427.77)($19,789.38)($17,798.44)($16,116.31)($14,581.46)($17,073.79)($22,739.33)($26,072.65)($23,993.38) [11]INTERST FOR JULY ($53.96) [12]INTERST FOR AUGUST ($65.94) [13]ENDING BALANCE ($24,113.27) Copy of Vernon TRBAA CY 2022 Resolution No. 2021-33 Page 12 of 14 ________________________ TRBAA Report 2022 Exhibit 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2627 28 29 30 31 32 33 34 A B C D E F G CITY OF VERNON FORECAST TRANSMISSION CREDITS for Calendar Year 2022 TRBAA MONTH Wheeling Total [1]January-22 ($987.16)($987.16) [2]February-22 ($987.16)($987.16) [3]March-22 ($987.16)($987.16) [4]April-22 ($987.16)($987.16) [5]May-22 ($987.16)($987.16) [6]June-22 ($987.16)($987.16) [7]July-22 ($987.16)($987.16) [8]August-22 ($987.16)($987.16) [9]September-22 ($987.16)($987.16) [10]October-22 ($987.16)($987.16) [11]November-22 ($987.16)($987.16) [12]December-22 ($987.16)($987.16) [13]Total ($11,845.91)($11,845.91) Resolution No. 2021-33 Page 13 of 14 ________________________ TRBAA Report 2022 Exhibit 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A B C D E F G H I Vernon Historical Transmission Credits for Calendar Year 2022 TRBAA Wheeling Revenues ISO INVOICE Month CT 384 Final Adjustments Total [1]July-20 ($1,190.88)($1,190.88) [2]August-20 ($329.74)($329.74) [3]September-20 ($322.94)($322.94) [4]October-20 ($137.92)($137.92) [5]November-20 ($1,446.05)($1,446.05) [6]December-20 ($93.56)($93.56) [7]January-21 ($240.70)($240.70) [8]February-21 ($550.66)($550.66) [9]March-21 ($4,571.98)($4,571.98) [10]April-21 ($7,605.06)($7,605.06) [11]May-21 $0.00 $0.00 [12]June-21 $0.00 $0.00 [13]($16,489.49) Resolution No. 2021-33 Page 14 of 14 ________________________ CALIFORNIA NEWSPAPER SERVICE BUREAU PRE# D A I L Y J O U R N A L C O R P O R A T I O N 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): Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com LISA POPE CITY OF VERNON CITY CLERK 4305 SANTA FE AVE VERNON, CA 90058 HRG NOTICE OF HEARING Notice of Public Hearing - Transmission Revenue Requirements and Transmission Revenue Adjustment 09/30/2021 , 10/07/2021 Notice Type: Ad Description COPY OF NOTICE 3514383 !A000005832115! An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. NOTICE OF CITY COUNCIL PUBLIC HEARING The City Council of the City of Vernon will conduct a public hearing,which you may attend,at Vernon City Hall,City Council Chamber,4305 Santa Fe Avenue,Vernon,CA 90058,or via Zoom Webinar at http://www.cityofvernon.org/webinar-cc,in accordance with Governor Newsom's Executive Order N-29-20 on Tuesday,October 19,2021,at 9:00 a.m.(or as soon thereafter as the matter can be heard),to: Consider the adoption of two resolutions (i) adopting a revised Transmission Revenue Requirement for 2022 and (ii)establishing a Transmission Revenue Balancing Account Adjustment for 2022 for its high voltage (over 200 kV)transmission entitlements (all located outside the City)in accordance with Vernon's Transmission Owner Tariff. The proposed ordinance will be available for public review on the City's website once the agenda for the meeting is posted or from the City Clerk at CityClerk@ci.vernon.ca.us or 323-583- 8811,ext.546. Please send your comments or questions to: Abraham Alemu,Public Utilities General Manager City of Vernon 4305 Santa Fe Avenue,Vernon,CA 90058 (323)583-8811 ext.250 Email: AAlemu@ci.vernon.ca.us During the hearing,any person interested, including all persons owning property in the local agency,may appear and be heard as to whether the proposed rates and charges are discriminatory or excessive,or will not be sufficient under Government Code Section 54515,or will not comply with any other provision of this chapter,or will not be sufficient under the provisions or covenants of any outstanding revenue bonds of the local agency payable from the revenues of the enterprise,or on any other matter relating to said proposed resolution or ordinance or the rates or charges proposed therein. If you challenge the adoption of a revised Transmission Revenue Requirement or the establishment of a Transmission Revenue Balancing Account 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. In compliance with the Americans with Disabilities Act (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,adjourned,or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated:September 22,2021 /s/Lisa Pope,City Clerk 9/30,10/7/21 PRE-3514383# HUNTINGTON PARK BULLETIN City of Vernon NOTICE OF CITY COUNCIL PUBLIC HEARING The City Council of the City of Vernon will conduct a public hearing, which you may attend, at Vernon City Hall, City Council Chamber, 4305 Santa Fe Avenue, Vernon, CA 90058, or via Zoom Webinar at http://www.cityofvernon.org/webinar-cc, in accordance with Governor Newsom's Executive Order N-29-20 on Tuesday, October 19, 2021, at 9:00 a.m. (or as soon thereafter as the matter can be heard), to: Consider the adoption of two resolutions (i) adopting a revised Transmission Revenue Requirement for 2022 and (ii) establishing a Transmission Revenue Balancing Account Adjustment for 2022 for its high voltage (over 200 kV) transmission entitlements (all located outside the City) in accordance with Vernon’s Transmission Owner Tariff. The proposed ordinance will be available for public review on the City’s website once the agenda for the meeting is posted or from the City Clerk at CityClerk@ci.vernon.ca.us or 323-583-8811, ext. 546. Please send your comments or questions to: Abraham Alemu, Public Utilities General Manager City of Vernon 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 583-8811 ext. 250 Email: AAlemu@ci.vernon.ca.us During the hearing, any person interested, including all persons owning property in the local age ncy, may appear and be heard as to whether the proposed rates and charges are discriminatory or excessive, or will not be sufficient under Government Code Section 54515, or will not comply with any other provision of this chapter, or will not be sufficient under the provisions or covenants of any outstanding revenue bonds of the local agency payable from the revenues of the enterprise, or on any other matter relating to said proposed resolution or ordinance or the rates or charges proposed therein. If you challenge the adoption of a revised Transmission Revenue Requirement or the establishment of a Transmission Revenue Balancing Account 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. In compliance with the Americans with Disabilities Act (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, adjourned, or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: September 22, 2021 Lisa Pope, City Clerk Publish: September 30, 2021 and October 7, 2021 4305 Santa Fe Avenue Vernon, CA 90058 (323) 583-8811 Vernon, CA 90058 ( 3 2 3 ) 5 8 3 - 8 8 1 1