Resolution No. 2021-035RESOLUTION NO. 2021-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND ADOPTING THE VERNON PUBLIC UTILITIES
DEPARTMENT RESOURCE ADEQUACY PLAN FOR 2022, 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 (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 2022, 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, a 1% load growth adjustment is appropriate for 2022.
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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I. Based upon that review, the City finds that the Projected Load forecast specified
in the City of Vernon Demand Forecast for 2022, Planning Reserve Margin, and the
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 Planning Reserve Margin and Flexible
Resource Adequacy Capacity Requirement has been secured; and (ii) 100% of the total
local Resource Adequacy requirement has been secured; and (b) monthly submittals
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.
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 2022 (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
2022, which is attached hereto as Exhibit A. Furthermore, the City Council of the City of
Vernon adopts the requirements for(a) annual submittals must demonstrate that (i) 90% of
the total system Coincident Peak Demand Forecast, plus Planning Reserve Margin and
Flexible Resource Adequacy Capacity Requirement has been secured; and (ii) 100% of
the total local Resource Adequacy requirement has been secured; and (b) monthly
submittals 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.
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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 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. 2021-35 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)
City of Vernon
Public Utilities Department’s
Resource Adequacy Plan
Calendar Year 2022
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Background:
The Resource Adequacy (RA) provisions of the California Independent System Operator’s
(CAISO) 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) Coincident Peak Demand Forecast for its load, (2)
Planning Reserve Margin, (3) Qualifying Capacity Criteria that will be used for determining
qualifying resource types and the Qualifying Capacity from such resources, (4) An annual,
monthly RA 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 “City of Vernon Public Utilities Department’s Resource Adequacy Plan for
Calendar Year 2022” 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 CAISO has entered into agreements
with various market participants, Generators, Scheduling Coordinators, Participating
Transmission Owners, Utility Distribution Companies, and Metered Subsystems (“MSS”),
which impose certain responsibilities on parties to establish a reliable system. One of those
responsibilities is to have operating reserves that meet the WECC minimum requirements.
The CAISO’s goal in considering reserve requirements is to balance available capacity with
demand across the entire CAISO control area, and therefore, CAISO’s primary concern is with
the time and amount of peak demand on the CAISO-controlled transmission system (the
“system peak”). In order to reduce demand during the period of the system peak (and therefore,
to lower the peak demand on the transmission system), utilities generally offer retail rate
structures designed to encourage load shifting away from the on-peak period. Such efforts are
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intended to achieve on-peak demand reduction and lower the need to build new generation to
meet peak demand. Vernon has adopted a rate structure and that 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 the capacity needed to meet CAISO’s control area capacity requirements
may be established by determining the amount of Vernon’s load that contributes to the CAISO
system peak. Vernon’s load that contributes to the CAISO system peak is the City of Vernon
coincident peak Demand. The process to establish Vernon’s monthly coincident peak Demand
Forecast consists of the following three steps:
1. Establish Monthly Vernon System Peak Demand Forecast for 2022
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 2019 and 2021, the
City of Vernon System peak demand has increased year over year. Exhibit 1 reveals the
growth rate to be 1.2% over the five-year period. Staff concluded that a 1% load growth
adjustment is an appropriate forecast for calendar year 2022. Exhibit 2 shows the
determination of the projected system peak demand for 2022 based on a 1% load growth
adjustment. The projected system peak demand for the City of Vernon is shown below in
Table 1.
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Table 1
Projected
Load
2022 MW
January 173.51
February 173.07
March 170.56
April 183.39
May 183.71
June 186.7
July 190.58
August 194.64
September 190.52
October 189.78
November 175.32
December 170.8
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
2022. It is also shown below in Table 2.
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Table 2
Demand
Forecast
2022 MW
January 135.5
February 135.5
March 138.0
April 145.1
May 149.7
June 150.5
July 151.5
August 166.5
September 163.5
October 160.5
November 144.0
December 134.0
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 follow:
1.CAISO IST-enabled Product. Power supply contract/s entered through WSPP
Agreement (MRTU Amendment) and defined as any SC-to-SC traded product for
which an IST (Inter-SC Trades) can be submitted and for which CAISO will make
payment or issue an invoice, including Energy, Tier I IFM Bid Cost Recovery
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 unit 2, 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 Net Qualifying Capacity of each contract. For the
upcoming year, the following contracts will count as Qualifying Capacity, Antelope
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DSR 1 Solar Project, Astoria 2 Solar Project and Puente Hills Landfill Gas-To-Energy
Facility.
6.Other Units. All other capacity from a Participating Generator, a System Unit, or a
System Resource, as defined in the CAISO Tariff, shall be eligible as Qualifying
Capacity. System Resources, however, must 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 up to 27 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 unit 2 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.
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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 flexibility;
(2) Peak ramping flexibility; and (3) Super-peak ramping flexibility. Section 40.10.3 of the
CAISO Tariff sets the criteria needed by resources to qualify for each category. For the
Calendar Year 2022, the CAISO has determined the system-wide 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 2022, 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 H. Gonzales Unit 2 (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.
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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 unit 2 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 2022. Staff will submit the monthly
Resource Adequacy and Supply data to the CAISO as they become due. The data to be
submitted on the monthly plans will demonstrate that 100% of all requirements have been met
and may be adjusted from the annual Resource Adequacy and Supply Plan for seasonal
variations as well as load and resource changes. The monthly plan is due to the CAISO 45
days prior to the beginning of the month.
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Exhibit 1Year Peak % Inc./Dec.(A) (B) (C)1 2017184.12 2018182.8 -0.674%3 2019177.2 -3.074%4 2020191.4 7.991%5 2021192.7 0.700%6 Average 185.6 1.2%AYearB 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 a 1% load growth is appropriate for calendar 2022.5 year Sytem Peak Demand AnalysisResource Adequacy Plan Page 10 of 21Resolution No. 2021-35 Page 13 of 24 ________________________
Exhibit 2MonthForecast based 2020-2021 (Actual City System Load)2022Projected System Peak Load (A) (B) (C)1January '21171.79 173.512 February '21171.35 173.073 March '21168.87 170.564 April '21181.58 183.395May '21181.89 183.716June '21184.85 186.707July '21188.69 190.588 August '21192.71 194.649 September '20188.63 190.5210 October '20187.90 189.7811 November '20173.58 175.3212 December '20169.11 170.80A Month and YearB Source: (Forecasted Peak Based on Historical System Peak Load Data)C Projected Load for 2022 (1% load increase is applied)January - December 2022 Projected LoadResource Adequacy Plan Page 11 of 21Resolution No. 2021-35 Page 14 of 24 ________________________
Exhibit 3MonthVernon System Peak DemandCoincidental Peak FactorCoincident Peak Demand Forecast RA Capacity Requirement(A) (B) (C) (D) (E)1January 173.5 78.1% 135.5 155.92February 173.1 78.3% 135.5 155.93March 170.6 80.9% 138.0 158.74 April 183.4 79.1% 145.1 166.85May 183.7 81.5% 149.7 172.16June 186.7 80.6% 150.5 173.17July 190.6 79.5% 151.5 174.38 August 194.6 85.5% 166.5 191.59 September190.5 85.8% 163.5 188.010 October 189.8 84.6% 160.5 184.511 November 175.3 82.1% 144.0 165.612 December 170.8 78.4% 134.0 154.1AMonthB Source: (Exhibit 2 Column E)C Source: CECD Product of B and CE Product of D and 115% (115% reflects Planning Reserve Margin)January - December 2022 Resource Adequacy RequirementResource Adequacy Plan Page 12 of 21Resolution No. 2021-35 Page 15 of 24 ________________________
Report TypeAnnual(Monthly/ Annual)Report Date9/23/2021(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 ContactName: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)Emailesandoval@ci.vernon.ca.us(Text Field)Back-Up ContactName:Shawn Sharif(Text Field)Title:Principal Resource Scheduler/Trader(Text Field)Telephone:(323)826-3625(Numeric)Email:ssharif@ci.vernon.ca.us(Text Field)Confidential RA Data1 of 29/23/2021&YIJCJUResource Adequacy Plan Page 13 of 21Resolution No. 2021-35 Page 16 of 24 ________________________
Resource ID in CAISO Master FileLocal RA Capacity (MW 00.00 No Rounding)System RA Capacity (MW 00.00 No Rounding)Flexible RA Capacity (MW 00.00 No Rounding)Flex CategoryRA Capacity Effective Start Date (mm/dd/yyyy)RA Capacity Effective End Date (mm/dd/yyyy)VERNON_6_MALBRG7064431 1/1/2022 1/31/2022VERNON_6_MALBRG7064521 2/1/2022 2/28/2022VERNON_6_MALBRG7064531 3/1/2022 3/31/2022VERNON_6_MALBRG7064451 4/1/2022 4/30/2022VERNON_6_MALBRG7064511 5/1/2022 5/31/2022VERNON_6_MALBRG7064511 6/1/2022 6/30/2022VERNON_6_MALBRG7064511 7/1/2022 7/31/2022VERNON_6_MALBRG7064491 8/1/2022 8/31/2022VERNON_6_MALBRG7064501 9/1/2022 9/30/2022VERNON_6_MALBRG7064511 10/1/2022 10/31/2022VERNON_6_MALBRG7064501 11/1/2022 11/30/2022VERNON_6_MALBRG7064461 12/1/2022 12/31/2022VERNON_6_GONZL25.751/1/2022 1/31/2022VERNON_6_GONZL25.752/1/2022 2/28/2022VERNON_6_GONZL25.753/1/2022 3/31/2022VERNON_6_GONZL25.754/1/2022 4/30/2022VERNON_6_GONZL25.755/1/2022 5/31/2022VERNON_6_GONZL25.756/1/2022 6/30/2022VERNON_6_GONZL25.757/1/2022 7/31/2022VERNON_6_GONZL25.758/1/2022 8/31/2022VERNON_6_GONZL25.759/1/2022 9/30/2022VERNON_6_GONZL25.7510/1/2022 10/31/2022VERNON_6_GONZL25.7511/1/2022 11/30/2022VERNON_6_GONZL25.7512/1/2022 12/31/2022VERN_MEAD230_I_UC_IMS001221/1/2022 1/31/2022VERN_MEAD230_I_UC_IMS001222/1/2022 2/28/2022VERN_MEAD230_I_UC_IMS001223/1/2022 3/31/2022VERN_MEAD230_I_UC_IMS001224/1/2022 4/30/2022VERN_MEAD230_I_UC_IMS001225/1/2022 5/31/2022VERN_MEAD230_I_UC_IMS001226/1/2022 6/30/2022VERN_MEAD230_I_UC_IMS001227/1/2022 7/31/2022VERN_MEAD230_I_UC_IMS001228/1/2022 8/31/2022VERN_MEAD230_I_UC_IMS001229/1/2022 9/30/2022VERN_MEAD230_I_UC_IMS0012210/1/2022 10/31/2022VERN_MEAD230_I_UC_IMS0012211/1/2022 11/30/2022VERN_MEAD230_I_UC_IMS0012212/1/2022 12/31/2022Confidential RA Data1 of 39/23/2021Resource Adequacy Plan Page 14 of 21Resolution No. 2021-35 Page 17 of 24 ________________________
Resource ID in CAISO Master FileLocal RA Capacity (MW 00.00 No Rounding)System RA Capacity (MW 00.00 No Rounding)Flexible RA Capacity (MW 00.00 No Rounding)Flex CategoryRA Capacity Effective Start Date (mm/dd/yyyy)RA Capacity Effective End Date (mm/dd/yyyy)VERN_WESTWING500_I_UC_IMS00111.591/1/2022 1/31/2022VERN_WESTWING500_I_UC_IMS00111.592/1/2022 2/28/2022VERN_WESTWING500_I_UC_IMS00111.593/1/2022 3/31/2022VERN_WESTWING500_I_UC_IMS00111.594/1/2022 4/30/2022VERN_WESTWING500_I_UC_IMS00111.595/1/2022 5/31/2022VERN_WESTWING500_I_UC_IMS00111.596/1/2022 6/30/2022VERN_WESTWING500_I_UC_IMS00111.597/1/2022 7/31/2022VERN_WESTWING500_I_UC_IMS00111.598/1/2022 8/31/2022VERN_WESTWING500_I_UC_IMS00111.599/1/2022 9/30/2022VERN_WESTWING500_I_UC_IMS00111.5910/1/2022 10/31/2022VERN_WESTWING500_I_UC_IMS00111.5911/1/2022 11/30/2022VERN_WESTWING500_I_UC_IMS00111.5912/1/2022 12/31/2022WALNUT_6_HILLGEN5.11/1/2022 1/31/2022WALNUT_6_HILLGEN5.062/1/2022 2/28/2022WALNUT_6_HILLGEN5.023/1/2022 3/31/2022WALNUT_6_HILLGEN4.984/1/2022 4/30/2022WALNUT_6_HILLGEN4.945/1/2022 5/31/2022WALNUT_6_HILLGEN4.96/1/2022 6/30/2022WALNUT_6_HILLGEN4.867/1/2022 7/31/2022WALNUT_6_HILLGEN4.828/1/2022 8/31/2022WALNUT_6_HILLGEN4.799/1/2022 9/30/2022WALNUT_6_HILLGEN4.7510/1/2022 10/31/2022WALNUT_6_HILLGEN4.7111/1/2022 11/30/2022WALNUT_6_HILLGEN4.6712/1/2022 12/31/2022ASTORA_2_SOLAR20.81/1/2022 1/31/2022ASTORA_2_SOLAR20.62/1/2022 2/28/2022ASTORA_2_SOLAR23.63/1/2022 3/31/2022ASTORA_2_SOLAR234/1/2022 4/30/2022ASTORA_2_SOLAR23.25/1/2022 5/31/2022ASTORA_2_SOLAR26.26/1/2022 6/30/2022ASTORA_2_SOLAR27.87/1/2022 7/31/2022ASTORA_2_SOLAR25.48/1/2022 8/31/2022ASTORA_2_SOLAR22.89/1/2022 9/30/2022ASTORA_2_SOLAR20.410/1/2022 10/31/2022ASTORA_2_SOLAR20.411/1/2022 11/30/2022BIGSKY_2_SOLAR711/1/2022 1/31/2022Confidential RA Data2 of 39/23/2021Resource Adequacy Plan Page 15 of 21Resolution No. 2021-35 Page 18 of 24 ________________________
Resource ID in CAISO Master FileLocal RA Capacity (MW 00.00 No Rounding)System RA Capacity (MW 00.00 No Rounding)Flexible RA Capacity (MW 00.00 No Rounding)Flex CategoryRA Capacity Effective Start Date (mm/dd/yyyy)RA Capacity Effective End Date (mm/dd/yyyy)BIGSKY_2_SOLAR70.752/1/2022 2/28/2022BIGSKY_2_SOLAR74.53/1/2022 3/31/2022BIGSKY_2_SOLAR73.754/1/2022 4/30/2022BIGSKY_2_SOLAR745/1/2022 5/31/2022BIGSKY_2_SOLAR77.756/1/2022 6/30/2022BIGSKY_2_SOLAR79.757/1/2022 7/31/2022BIGSKY_2_SOLAR76.758/1/2022 8/31/2022BIGSKY_2_SOLAR73.59/1/2022 9/30/2022BIGSKY_2_SOLAR70.510/1/2022 10/31/2022BIGSKY_2_SOLAR70.511/1/2022 11/30/2022Confidential RA Data3 of 39/23/2021Resource Adequacy Plan Page 16 of 21Resolution No. 2021-35 Page 19 of 24 ________________________
Report TypeAnnualReport Date9/23/2021Name of Supplier:City of VernonScheduling Coordinator:VERNPerson who prepared this RA Plan (Name):Efrain Sandoval(Text Field)Title:Principal Resource Scheduler/Trader(Text Field)Primary ContactName: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)Emailesandoval@ci.vernon.ca.us(Text Field)Back-Up ContactName:Shawn Sharif(Text Field)Title:Principal Resource Scheduler/Trader(Text Field)Telephone:(Numeric)Email:ssharif@ci.vernon.ca.us(Text Field)Confidential Supply Data1 of 29/23/2021&YIJCJUResource Adequacy Plan Page 17 of 21Resolution No. 2021-35 Page 20 of 24 ________________________
Resource ID in CAISO Master FileLocal RA Capacity (MW 00.00 No Rounding)System RA Capacity (MW 00.00 No Rounding)Flexible RA Capacity (MW 00.00 No Rounding)Flexible Category 1,2,3RA Capacity Effective Start Date (mm/dd/yyyy)RA Capacity Effective End Date (mm/dd/yyyy)SCID of Load Serving EntityVERNON_6_MALBRG 70 64 43 1 1/1/2022 1/31/2022 VERNVERNON_6_MALBRG 70 64 52 1 2/1/2022 2/28/2022 VERNVERNON_6_MALBRG 70 64 53 1 3/1/2022 3/31/2022 VERNVERNON_6_MALBRG 70 64 45 1 4/1/2022 4/30/2022 VERNVERNON_6_MALBRG 70 64 51 1 5/1/2022 5/31/2022 VERNVERNON_6_MALBRG 70 64 51 1 6/1/2022 6/30/2022 VERNVERNON_6_MALBRG 70 64 51 1 7/1/2022 7/31/2022 VERNVERNON_6_MALBRG 70 64 49 1 8/1/2022 8/31/2022 VERNVERNON_6_MALBRG 70 64 50 1 9/1/2022 9/30/2022 VERNVERNON_6_MALBRG 70 64 51 1 10/1/2022 10/31/2022 VERNVERNON_6_MALBRG 70 64 50 1 11/1/2022 11/30/2022 VERNVERNON_6_MALBRG 70 64 46 1 12/1/2022 12/31/2022 VERNVERNON_6_GONZL1 5.75 1/1/2022 1/31/2022 VERNVERNON_6_GONZL1 5.75 2/1/2022 2/28/2022 VERNVERNON_6_GONZL1 5.75 3/1/2022 3/31/2022 VERNVERNON_6_GONZL1 5.75 4/1/2022 4/30/2022 VERNVERNON_6_GONZL1 5.75 5/1/2022 5/31/2022 VERNVERNON_6_GONZL1 5.75 6/1/2022 6/30/2022 VERNVERNON_6_GONZL1 5.75 7/1/2022 7/31/2022 VERNVERNON_6_GONZL1 5.75 8/1/20228/31/2022 VERNVERNON_6_GONZL1 5.75 9/1/2022 9/30/2022 VERNVERNON_6_GONZL1 5.75 10/1/2022 10/31/2022 VERNVERNON_6_GONZL1 5.75 11/1/2022 11/30/2022 VERNVERNON_6_GONZL1 5.75 12/1/2022 12/31/2022 VERNVERNON_6_GONZL2 5.75 1/1/2022 1/31/2022 VERNVERNON_6_GONZL2 5.75 2/1/2022 2/28/2022 VERNVERNON_6_GONZL2 5.75 3/1/2022 3/31/2022 VERNVERNON_6_GONZL2 5.75 4/1/2022 4/30/2022 VERNVERNON_6_GONZL2 5.75 5/1/2022 5/31/2022 VERNVERNON_6_GONZL2 5.75 6/1/2022 6/30/2022 VERNVERNON_6_GONZL2 5.75 7/1/2022 7/31/2022 VERNVERNON_6_GONZL2 5.75 8/1/2022 8/31/2022 VERNVERNON_6_GONZL2 5.75 9/1/2022 9/30/2022 VERNVERNON_6_GONZL2 5.75 10/1/2022 10/31/2022 VERNVERNON_6_GONZL2 5.75 11/1/2022 11/30/2022 VERNConfidential Supply Data1 of 29/23/2021Resource Adequacy Plan Page 18 of 21Resolution No. 2021-35 Page 21 of 24 ________________________
Resource ID in CAISO Master FileLocal RA Capacity (MW 00.00 No Rounding)System RA Capacity (MW 00.00 No Rounding)Flexible RA Capacity (MW 00.00 No Rounding)Flexible Category 1,2,3RA Capacity Effective Start Date (mm/dd/yyyy)RA Capacity Effective End Date (mm/dd/yyyy)SCID of Load Serving EntityVERNON_6_GONZL25.7512/1/2022 12/31/2022 VERNVERN_MEAD230_I_UC_IMS001221/1/2022 1/31/2022 VERNVERN_MEAD230_I_UC_IMS001222/1/2022 2/28/2022 VERNVERN_MEAD230_I_UC_IMS001223/1/2022 3/31/2022 VERNVERN_MEAD230_I_UC_IMS001224/1/2022 4/30/2022 VERNVERN_MEAD230_I_UC_IMS001225/1/2022 5/31/2022 VERNVERN_MEAD230_I_UC_IMS001226/1/2022 6/30/2022 VERNVERN_MEAD230_I_UC_IMS001227/1/2022 7/31/2022 VERNVERN_MEAD230_I_UC_IMS001228/1/2022 8/31/2022 VERNVERN_MEAD230_I_UC_IMS001229/1/2022 9/30/2022 VERNVERN_MEAD230_I_UC_IMS0012210/1/2022 10/31/2022 VERNVERN_MEAD230_I_UC_IMS0012211/1/2022 11/30/2022 VERNVERN_MEAD230_I_UC_IMS0012212/1/2022 12/31/2022 VERNVERN_WESTWING500_I_UC_IMS00111.591/1/2022 1/31/2022 VERNVERN_WESTWING500_I_UC_IMS00111.592/1/2022 2/28/2022 VERNVERN_WESTWING500_I_UC_IMS00111.593/1/2022 3/31/2022 VERNVERN_WESTWING500_I_UC_IMS00111.594/1/2022 4/30/2022 VERNVERN_WESTWING500_I_UC_IMS00111.595/1/2022 5/31/2022 VERNVERN_WESTWING500_I_UC_IMS00111.596/1/2022 6/30/2022 VERNVERN_WESTWING500_I_UC_IMS00111.597/1/2022 7/31/2022 VERNVERN_WESTWING500_I_UC_IMS00111.598/1/2022 8/31/2022 VERNVERN_WESTWING500_I_UC_IMS00111.599/1/2022 9/30/2022 VERNVERN_WESTWING500_I_UC_IMS00111.5910/1/2022 10/31/2022 VERNVERN_WESTWING500_I_UC_IMS00111.5911/1/2022 11/30/2022 VERNVERN_WESTWING500_I_UC_IMS00111.5912/1/2022 12/31/2022 VERNConfidential Supply Data2 of 29/23/2021Resource Adequacy Plan Page 19 of 21Resolution No. 2021-35 Page 22 of 24 ________________________
Exhibit 6Min. Base Flexibility RequirementPeak FlexibilitySuper Peak Flexibilty Total Flexible RA Requirement(A) (B) (C) (D) (E)1January17.15 23.69 2.1543.002February20.58 28.42 2.5851.583March20.84 28.78 2.6152.234April17.57 24.26 2.2044.035May25.05 22.92 2.5350.506June24.88 22.77 2.5150.167July25.25 23.10 2.5450.898 August24.20 22.14 2.4448.799 September24.62 22.52 2.4849.6210 October19.98 27.59 2.5050.0711 November19.57 27.03 2.4549.0612 December18.27 25.23 2.2945.79AMonthB Requirement for Category 1 - Base Ramping ResourcesC Maximum allowed use of Category 2 - Peak FlexibilityD Maximum allowed use of Category 3 - Super Peak FlexibilityE Total Flexible RA Requirement for City of VernonJanuary - December 2022 Flexible RA RequirementResource Adequacy Plan Page 20 of 21Resolution No. 2021-35 Page 23 of 24 ________________________
Exhibit 7Effective Flexible CapacityFlexible Capacity Category(A)(B) (C)1 Malburg Generating Station78 12 H. Gonzalez 25.75 1A Designated flexible resourceB Designated Effective Flexible Capacity (Qualified Flexible Capacity by each Resource)C Designated Flexible Capacity CategoryJanuary - December 2022 Effective Flexible CapacityResource Adequacy Plan Page 21 of 21Resolution No. 2021-35 Page 24 of 24 ________________________
City Council Agenda Item Report
Agenda Item No. COV-802-2021
Submitted by: Efrain Sandoval
Submitting Department: Public Utilities
Meeting Date: October 19, 2021
SUBJECT
Resource Adequacy Plan for 2022
Recommendation:
A. Adopt Resolution No. 2021-35 approving and adopting the Vernon Public Utilities Department
Resource Adequacy Plan for 2022, 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 (CAISO) tariff requirements; and
B. Authorize staff to submit the City of Vernon Public Utilities Department’s Resource Adequacy Plan for
2022 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’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, a 1%
load growth adjustment is appropriate for 2022. To establish the Coincident Peak Demand Forecast for
2022, staff has used its monthly peak Demand Forecast (as listed on Table 1 of the Resource Adequacy
Plan for 2022) 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 2022.
(2) Planning Reserve Margin is defined as the amount of Resource Adequacy Capacity that an LSE must
maintain above its coincident peak Demand Forecast. Historically, the City 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 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 (IST) 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’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 Net Qualified Capacity (NQC) for each contract, as determined
and listed annually by CAISO.
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 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
City’s local capacity requirement.
(5) Flexible Resource Adequacy Capacity Requirement is defined as the monthly allocation of the
Flexible Resource Adequacy Capacity Requirement the City 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 unit 2
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 City’s 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 City’s 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 2022, and now seeks authorization from the City Council to
submit the Plan and the Monthly Resource Adequacy and Supply data to the CAISO.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Resolution No. 2021-35