Resolution No. 2023-021RESOLUTION NO. 2023-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND ADOPTING THE VERNON PUBLIC UTILITIES
DEPARTMENT RESOURCE ADEQUACY PLAN FOR 2024, WHICH
INCLUDES THE COINCIDENT PEAK DEMAND FORECAST, THE
PLANNING RESERVE MARGIN, THE QUALIFYING CAPACITY
CRITERIA, AND THE QUALIFYING CAPACITY FROM SUCH
RESOURCES, THE CITY’S RESOURCE ADEQUACY AND SUPPLY
DATA AND APPROVING THE RESOURCES USED TO SATISFY THE
CALIFORNIA INDEPENDENT SYSTEM OPERATOR’S TARIFF
REQUIREMENTS AND REPEALING RESOLUTION NO. 2022-35
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 2024, the available
generation and other capacity to serve that demand, and constraints which might
impact the availability of capacity to serve the City’s projected peak demand.
G. Based upon staff analysis, no load growth adjustment is appropriate for 2024.
H. 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. The City finds that the Projected Load forecast specified in the City of Vernon
Demand Forecast for 2024, 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 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 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 2024
(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 2024, which is attached hereto as Exhibit A. Furthermore,
the City Council of the City of Vernon adopts the requirements for: (a) annual submittals
to 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.
SECTION 4. All resolutions or parts of resolutions, specifically Resolution No.
2022-35, not consistent with or in conflict with this resolution are hereby repealed.
/ / /
/ / /
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SECTION 5. The City Clerk shall certify the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED October 3, 2023.
________________________
CRYSTAL LARIOS, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
ZAYNAH N. MOUSSA, City Attorney
I CERTIFY THAT RESOLUTION NO. 2023-21 was passed and adopted by the City
Council of the City of Vernon at the Regular Meeting on October 3, 2023, by the following
vote:
AYES: 5 Council Members: Lopez, Rivera, Ybarra, Merlo, Larios
NOES: 0
ABSENT: 0
ABSTAIN: 0
________________________________
LISA POPE, City Clerk
(seal)
City of Vernon
Public Utilities Department’s
Resource Adequacy Plan
Calendar Year 2024
(;+,%,7$
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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 resources used to satisfy the LSE’s Local Capacity Requirement and Flexible
Resource Adequacy Capacity Requirement.
Staff has prepared the attached “City of Vernon Public Utilities Department’s Resource
Adequacy Plan for Calendar Year 2024,” which is consistent with the CAISO Tariff
requirements. The following is a discussion ofeach 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,
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to lower the peak demand on the transmission system), utilities generally offer retail rate
structures designed to encourage load shifting away from the on-peak period. Such efforts are
intended to achieve on-peak demand reduction and lower the need to build new generation to
meet peak demand. Vernon has adopted a rate structure that has successfully shifted 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 2024
To establish the City of Vernon’s system peak demand forecast, Staff performs an analysis
of annual changes 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 upcoming calendar year
(Exhibit 1). This year’s analysis of the City of Vernon’s system peak demand demonstrates
inconsistent trend year over year between 2019 and 2023. Closer review of Exhibit 1
reveals that the more recently, the growth rate from 2021 to 2023 decreased by 4.79%.
Based on the current load trend and recent years of inconsistencies, Staff concluded no load
growth adjustment is an appropriate forecast for calendar year 2024. Exhibit 2 shows the
determination of the projected system peak demand for 2024 based on no 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
2024 MW
January 154.12
February 157.60
March 156.99
April 155.84
May 157.57
June 162.82
July 176.13
August 172.08
September 174.33
October 164.79
November 159.48
December 155.05
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
2024. It is also shown below in Table 2.
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Table 2
Demand
Forecast
2024 MW
January 119.9
February 122.0
March 122.0
April 121.5
May 131.6
June 129.2
July 137.6
August 138.5
September 140.8
October 136.0
November 125.2
December 122.0
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
eight 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 for the eight eligible resource
types are as follows:
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 (excluding Vernon diesel generating
units) within Vernon’s MSS, including the Malburg Generating Station and the City
owned H. Gonzalez units, as reflected in Schedule 14 of Vernon’s MSS Agreement
with CAISO shall be eligible to count as Qualifying Capacity. The amount of
Qualifying Capacity of such units shall not exceed the Net Qualifying Capacity (NQC)
as determined and listed annually by the CAISO.
5.Long Term Power Purchase Contracts. Long term power supply contracts (5 years or
greater) entered through a power purchase agreement shall be eligible to count as
Qualifying Capacity. The amount of Qualifying Capacity will be based on the City of
Vernon’s percentage share of the 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, Daggett 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.
8. Battery Energy Storage System (Non-Generator Resources).Power Supply contracts
for BESS or Non-Generator Resource as defined by the CAISO entered through a
power purchase agreement shall be eligible to count as Qualifying Capacity. The
amount of Qualifying Capacity shall be based on the Vernon’s percentage share of the
Net Qualifying Capacity of each contract. For the upcoming year, the Daggett BESS
contract will count as Qualifying capacity once Commercial Operation Date has been
declared by the CAISO.
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
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list enough local resources in its Resource Adequacy data templates to satisfy its obligation.
Staff has prepared the Resource Adequacy data templates (Exhibit 4) which lists the Resource
Adequacy Resources including the Malburg Generating Station, Puente Hills Landfill Gas-To-
Energy Facility and the City owned H. Gonzalez units that will be counted on to satisfy the
Local Area Capacity requirement for the City of Vernon. Additionally, any Interruptible
Service Agreements with the City’s electric customers shall count towards the City’s Local
Capacity’s requirement.
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 have continued to increase
and has created 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 so that they may
be optimally dispatched.
The CAISO study calculates the total system amount of Flexible Capacity needed for each of
the three Flexible Capacity categories: (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 2024, 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 2024, the CAISO has established 105 MW of
category 1 base ramping flexible resources adequacy capacity for Malburg Generating Station,
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and 5.75 MW category 1 base ramping flexible resource adequacy capacity for both H.
Gonzales Units (Exhibit 7). CAISO Tariff Section 40.10.5.1 requires the Scheduling
Coordinators of LSEs to identify the resources it will rely on to satisfy its Flexible Resource
Adequacy Capacity on both the annual and monthly Resource Adequacy data templates.
Staff has prepared the Resource Adequacy data templates (Exhibit 4) which lists the Resource
Adequacy Resources including the Malburg Generating Station and the City owned H.
Gonzalez units that will be counted on to satisfy the Flexible Resource Adequacy Capacity
requirement for the City of Vernon.
Annual and Monthly Resource Adequacy and 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 2024. Staff will submit the monthly
Resource Adequacy and Supply data to the CAISO as they become due. The data to be
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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 1
Year Peak % Inc./Dec.
(A) (B) (C)
1 2019 177.2
2 2020 191.4 8.014%
3 2021 194.3 1.520%
4 2022 187.4 -3.582%
5 2023 176.1 -5.989%
6 Average 185.3 0.0%
AYear
B Source: (City Historical Sytem Peak Load Data)
C % Increase/Decrease from previous year.
Note: The five year system peak demand average will not be used in this year's RA Plan.
It has been determined that no load growth is appropriate for calendar 2024.
5 year Sytem Peak Demand Analysis
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Exhibit 2
Month
Forecast based
2022-2023
(Actual City
System Load)
2024
Projected
System Peak
Load
(A) (B) (C)
1 January '23 154.12 154.12
2 February '23 157.60 157.60
3 March '23 156.99 156.99
4 April '23 155.84 155.84
5 May '23 157.57 157.57
6 June '23 162.82 162.82
7 July '23 176.13 176.13
8 August '23 172.08 172.08
9 September '22 174.33 174.33
10 October '22 164.79 164.79
11 November '22 159.48 159.48
12 December '22 155.05 155.05
A Month and Year
B Source: (Forecasted Peak Based on Historical System Peak Load Data)
C Projected Load for 2024 no load growth is applied)
January - December 2024 Projected Load
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Exhibit 3
Month
Vernon
System Peak
Demand
Coincidental
Peak Factor
Coincident
Peak Demand
Forecast
RA Capacity
Requirement
(A) (B) (C) (D) (E)
1 January 154.1 77.8% 119.9 137.9
2 February 157.6 77.4% 122.0 140.3
3 March 157.0 77.7% 122.0 140.3
4 April 155.8 77.9% 121.5 139.7
5May 157.6 83.5% 131.6 151.3
6June 162.8 79.4% 129.2 148.6
7 July 176.1 78.1% 137.6 158.2
8 August 172.1 80.5% 138.5 159.3
9 September 174.3 80.8% 140.8 162.0
10 October 164.8 82.5% 136.0 156.4
11 November 159.5 78.5% 125.2 143.9
12 December 155.0 78.7% 122.0 140.3
A Month
B Source: (Exhibit 2 Column E)
CSource: CEC
D Product of B and C
E Product of D and 115% (115% reflects Planning Reserve Margin)
January - December 2024 Resource Adequacy Requirement
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Report Type Annual (Monthly/ Annual)
Report Date 9/13/2023 (MM/DD/YYYY)
Name of Load Serving Entity (LSE):City of Vernon (Text Field)
Scheduling Coordinator (SCID):LVERN (AAAA)
Person who prepared this RA Plan (Name):Efrain Sandoval (Text Field)
Title:Principal Resource Scheduler/Trader (Text Field)
Primary Contact
Name:Efrain Sandoval (Text Field)
Title:Principal Resource Scheduler/Trader (Text Field)
Address:4305 Santa Fe Ave.(Text Field)
Address 2:(Optional, Text Field)
City:Vernon (Text Field)
State:CA (Text Field)
Zip:90058 (Numeric)
Telephone:(323) 826-1424 (Numeric)
Email esandoval@ci.vernon.ca.us (Text Field)
Back-Up Contact
Name: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 Data 1 of 1 9/14/2023
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Resource ID in CAISO Master File
Local RA
Capacity (MW
00.00 No
Rounding)
System RA
Capacity (MW
00.00 No
Rounding)
Flexible RA
Capacity (MW
00.00 No
Rounding)
Flex
Category
RA Capacity
Effective Start
Date
(mm/dd/yyyy)
RA Capacity
Effective End
Date
(mm/dd/yyyy)
VERNON 6 MALBRG 42 97 111 1 1/1/2024 1/31/2024
VERNON 6 MALBRG 42 97 117 1 2/1/2024 2/28/2024
VERNON 6 MALBRG 42 97 124 1 3/1/2024 3/31/2024
VERNON 6 MALBRG 42 97 121 1 4/1/2024 4/30/2024
VERNON 6 MALBRG 42 97 108 1 5/1/2024 5/31/2024
VERNON 6 MALBRG 42 97 113 1 6/1/2024 6/30/2024
VERNON 6 MALBRG 42 97 115 1 7/1/2024 7/31/2024
VERNON 6 MALBRG 42 97 115 1 8/1/2024 8/31/2024
VERNON 6 MALBRG 42 97 120 1 9/1/2024 9/30/2024
VERNON 6 MALBRG 42 97 104 1 10/1/2024 10/31/2024
VERNON 6 MALBRG 42 97 104 1 11/1/2024 11/30/2024
VERNON 6 MALBRG 42 97 91 1 12/1/2024 12/31/2024
VERNON 6 GONZL1 5.75 1/1/2024 1/31/2024
VERNON 6 GONZL1 5.75 2/1/2024 2/28/2024
VERNON 6 GONZL1 5.75 3/1/2024 3/31/2024
VERNON 6 GONZL1 5.75 4/1/2024 4/30/2024
VERNON 6 GONZL1 5.75 5/1/2024 5/31/2024
VERNON 6 GONZL1 5.75 6/1/2024 6/30/2024
VERNON 6 GONZL1 5.75 7/1/2024 7/31/2024
VERNON 6 GONZL1 5.75 8/1/2024 8/31/2024
VERNON 6 GONZL1 5.75 9/1/2024 9/30/2024
VERNON 6 GONZL1 5.75 10/1/2024 10/31/2024
VERNON 6 GONZL1 5.75 11/1/2024 11/30/2024
VERNON 6 GONZL1 5.75 12/1/2024 12/31/2024
VERNON 6 GONZL2 5.75 1/1/2024 1/31/2024
VERNON 6 GONZL2 5.75 2/1/2024 2/28/2024
VERNON 6 GONZL2 5.75 3/1/2024 3/31/2024
VERNON 6 GONZL2 5.75 4/1/2024 4/30/2024
VERNON 6 GONZL2 5.75 5/1/2024 5/31/2024
VERNON 6 GONZL2 5.75 6/1/2024 6/30/2024
VERNON 6 GONZL2 5.75 7/1/2024 7/31/2024
VERNON 6 GONZL2 5.75 8/1/2024 8/31/2024
VERNON 6 GONZL2 5.75 9/1/2024 9/30/2024
VERNON 6 GONZL2 5.75 10/1/2024 10/31/2024
VERNON 6 GONZL2 5.75 11/1/2024 11/30/2024
VERNON 6 GONZL2 5.75 12/1/2024 12/31/2024
VERN MEAD230 I UC IMS001 22 1/1/2024 1/31/2024
VERN MEAD230 I UC IMS001 22 2/1/2024 2/28/2024
VERN MEAD230 I UC IMS001 22 3/1/2024 3/31/2024
VERN MEAD230 I UC IMS001 22 4/1/2024 4/30/2024
VERN MEAD230 I UC IMS001 22 5/1/2024 5/31/2024
VERN MEAD230 I UC IMS001 22 6/1/2024 6/30/2024
VERN MEAD230 I UC IMS001 22 7/1/2024 7/31/2024
VERN MEAD230 I UC IMS001 22 8/1/2024 8/31/2024
VERN MEAD230 I UC IMS001 22 9/1/2024 9/30/2024
VERN MEAD230 I UC IMS001 22 10/1/2024 10/31/2024
VERN MEAD230 I UC IMS001 22 11/1/2024 11/30/2024
VERN MEAD230 I UC IMS001 22 12/1/2024 12/31/2024
VERN WESTWING500 I UC IMS001 11.59 1/1/2024 1/31/2024
VERN WESTWING500 I UC IMS001 11.59 2/1/2024 2/28/2024
VERN WESTWING500 I UC IMS001 11.59 3/1/2024 3/31/2024
VERN WESTWING500 I UC IMS001 11.59 4/1/2024 4/30/2024
VERN WESTWING500 I UC IMS001 11.59 5/1/2024 5/31/2024
VERN WESTWING500 I UC IMS001 11.59 6/1/2024 6/30/2024
VERN WESTWING500 I UC IMS001 11.59 7/1/2024 7/31/2024
VERN WESTWING500 I UC IMS001 11.59 8/1/2024 8/31/2024
VERN WESTWING500 I UC IMS001 11.59 9/1/2024 9/30/2024
VERN WESTWING500 I UC IMS001 11.59 10/1/2024 10/31/2024
VERN WESTWING500 I UC IMS001 11.59 11/1/2024 11/30/2024
VERN WESTWING500 I UC IMS001 11.59 12/1/2024 12/31/2024
WALNUT 6 HILLGEN 4.64 1/1/2024 1/31/2024
WALNUT 6 HILLGEN 4.6 2/1/2024 2/28/2024
WALNUT 6 HILLGEN 4.57 3/1/2024 3/31/2024
WALNUT 6 HILLGEN 2.11 4/1/2024 4/30/2024
WALNUT 6 HILLGEN 4.07 5/1/2024 5/31/2024
WALNUT 6 HILLGEN 4.46 6/1/2024 6/30/2024
WALNUT 6 HILLGEN 4.42 7/1/2024 7/31/2024
WALNUT 6 HILLGEN 4.39 8/1/2024 8/31/2024
WALNUT 6 HILLGEN 4.35 9/1/2024 9/30/2024
WALNUT 6 HILLGEN 4.32 10/1/2024 10/31/2024
WALNUT 6 HILLGEN 4.28 11/1/2024 11/30/2024
WALNUT 6 HILLGEN 4.25 12/1/2024 12/31/2024
ASTORA 2 SOLAR2 0.07 1/1/2024 1/31/2024
ASTORA 2 SOLAR2 0.42 2/1/2024 2/28/2024
ASTORA 2 SOLAR2 1.8 3/1/2024 3/31/2024
ASTORA 2 SOLAR2 5.75 4/1/2024 4/30/2024
ASTORA 2 SOLAR2 5.28 5/1/2024 5/31/2024
ASTORA 2 SOLAR2 7.75 6/1/2024 6/30/2024
ASTORA 2 SOLAR2 7.22 7/1/2024 7/31/2024
ASTORA 2 SOLAR2 7.1 8/1/2024 8/31/2024
ASTORA 2 SOLAR2 5.78 9/1/2024 9/30/2024
ASTORA 2 SOLAR2 5.09 10/1/2024 10/31/2024
ASTORA 2 SOLAR2 0.71 11/1/2024 11/30/2024
ASTORA 2 SOLAR2 0.61 12/1/2024 12/31/2024
BIGSKY 2 SOLAR7 0.1 1/1/2024 1/31/2024
BIGSKY 2 SOLAR7 0.75 2/1/2024 2/28/2024
BIGSKY 2 SOLAR7 0.87 3/1/2024 3/31/2024
BIGSKY 2 SOLAR7 1.1 4/1/2024 4/30/2024
BIGSKY 2 SOLAR7 1.6 5/1/2024 5/31/2024
BIGSKY 2 SOLAR7 3.28 6/1/2024 6/30/2024
BIGSKY 2 SOLAR7 3.6 7/1/2024 7/31/2024
BIGSKY 2 SOLAR7 3.1 8/1/2024 8/31/2024
BIGSKY 2 SOLAR7 2.77 9/1/2024 9/30/2024
BIGSKY 2 SOLAR7 1.85 10/1/2024 10/31/2024
BIGSKY 2 SOLAR7 1.43 11/1/2024 11/30/2024
BIGSKY 2 SOLAR7 0.87 12/1/2024 12/31/2024
Confidential RA Data 1 of 1 9/14/2023
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Resolution No. 2023-21
Page 18 of 24
________________________
Resource ID (if applicable)
RA Capacity (MW 00.00 No
Rounding)
RA Capacity
Effective Start Date
(mm/dd/yyyy)
RA Capacity
Effective End Date
(mm/dd/yyyy)
Capacity
Designation (UC,
LD, CM, RM, or
DR)
Confidential RA Data 1 of 1 9/14/2023
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Resolution No. 2023-21
Page 19 of 24
________________________
Report Type Annual
Report Date 9/13/2023
Name of Supplier:City of Vernon
Scheduling Coordinator:VERN
Person who prepared this RA Plan (Name):Efrain Sandoval (Text Field)
Title:Principal Resource Scheduler/Trader (Text Field)
Primary Contact
Name:Efrain Sandoval (Text Field)
Title:Principal Resource Scheduler/Trader (Text Field)
Address:4305 Santa Fe Ave.(Text Field)
Address 2:(Optional, Text Field)
City:Vernon (Text Field)
State:CA (Text Field)
Zip:90058 (Numeric)
Telephone:(323) 826-1424 (Numeric)
Email esandoval@ci.vernon.ca.us (Text Field)
Back-Up Contact
Name:Shawn Sharif (Text Field)
Title:Principal Resource Scheduler/Trader (Text Field)
Telephone:(Numeric)
Email:ssharif@ci.vernon.ca.us (Text Field)
Confidential Supply Data 1 of 1 9/14/2023
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Resolution No. 2023-21
Page 20 of 24
________________________
Resource ID in CAISO Master File
Local 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
1,2,3
RA Capacity
Effective Start
Date (mm/dd/yyyy)
RA Capacity
Effective End
Date
(mm/dd/yyyy)
SCID of
Load
Serving
Entity
VERNON_6_MALBRG 42 97 111 1 1/1/2024 1/31/2024 LVERN
VERNON_6_MALBRG 42 97 117 1 2/1/2024 2/28/2024 LVERN
VERNON_6_MALBRG 42 97 124 1 3/1/2024 3/31/2024 LVERN
VERNON_6_MALBRG 42 97 121 1 4/1/2024 4/30/2024 LVERN
VERNON_6_MALBRG 42 97 108 1 5/1/2024 5/31/2024 LVERN
VERNON_6_MALBRG 42 97 113 1 6/1/2024 6/30/2024 LVERN
VERNON_6_MALBRG 42 97 115 1 7/1/2024 7/31/2024 LVERN
VERNON_6_MALBRG 42 97 115 1 8/1/2024 8/31/2024 LVERN
VERNON_6_MALBRG 42 97 120 1 9/1/2024 9/30/2024 LVERN
VERNON_6_MALBRG 42 97 104 1 10/1/2024 10/31/2024 LVERN
VERNON_6_MALBRG 42 97 104 1 11/1/2024 11/30/2024 LVERN
VERNON_6_MALBRG 42 97 91 1 12/1/2024 12/31/2024 LVERN
VERNON_6_GONZL1 5.75 1/1/2024 1/31/2024 LVERN
VERNON_6_GONZL1 5.75 2/1/2024 2/28/2024 LVERN
VERNON_6_GONZL1 5.75 3/1/2024 3/31/2024 LVERN
VERNON_6_GONZL1 5.75 4/1/2024 4/30/2024 LVERN
VERNON_6_GONZL1 5.75 5/1/2024 5/31/2024 LVERN
VERNON_6_GONZL1 5.75 6/1/2024 6/30/2024 LVERN
VERNON_6_GONZL1 5.75 7/1/2024 7/31/2024 LVERN
VERNON_6_GONZL1 5.75 8/1/2024 8/31/2024 LVERN
VERNON_6_GONZL1 5.75 9/1/2024 9/30/2024 LVERN
VERNON_6_GONZL1 5.75 10/1/2024 10/31/2024 LVERN
VERNON_6_GONZL1 5.75 11/1/2024 11/30/2024 LVERN
VERNON_6_GONZL1 5.75 12/1/2024 12/31/2024 LVERN
VERNON_6_GONZL2 5.75 1/1/2024 1/31/2024 LVERN
VERNON_6_GONZL2 5.75 2/1/2024 2/28/2024 LVERN
VERNON_6_GONZL2 5.75 3/1/2024 3/31/2024 LVERN
VERNON_6_GONZL2 5.75 4/1/2024 4/30/2024 LVERN
VERNON_6_GONZL2 5.75 5/1/2024 5/31/2024 LVERN
VERNON_6_GONZL2 5.75 6/1/2024 6/30/2024 LVERN
VERNON_6_GONZL2 5.75 7/1/2024 7/31/2024 LVERN
VERNON_6_GONZL2 5.75 8/1/2024 8/31/2024 LVERN
VERNON_6_GONZL2 5.75 9/1/2024 9/30/2024 LVERN
VERNON_6_GONZL2 5.75 10/1/2024 10/31/2024 LVERN
VERNON_6_GONZL2 5.75 11/1/2024 11/30/2024 LVERN
Confidential Supply Data 1 of 2 9/23/2021
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Resolution No. 2023-21
Page 21 of 24
________________________
Resource ID in CAISO Master File
Local 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
1,2,3
RA Capacity
Effective Start
Date (mm/dd/yyyy)
RA Capacity
Effective End
Date
(mm/dd/yyyy)
SCID of
Load
Serving
Entity
VERNON_6_GONZL2 5.75 12/1/2024 12/31/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 1/1/2024 1/31/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 2/1/2024 2/28/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 3/1/2024 3/31/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 4/1/2024 4/30/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 5/1/2024 5/31/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 6/1/2024 6/30/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 7/1/2024 7/31/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 8/1/2024 8/31/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 9/1/2024 9/30/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 10/1/2024 10/31/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 11/1/2024 11/30/2024 LVERN
VERN_MEAD230_I_UC_IMS001 22 12/1/2024 12/31/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 1/1/2024 1/31/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 2/1/2024 2/28/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 3/1/2024 3/31/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 4/1/2024 4/30/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 5/1/2024 5/31/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 6/1/2024 6/30/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 7/1/2024 7/31/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 8/1/2024 8/31/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 9/1/2024 9/30/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 10/1/2024 10/31/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 11/1/2024 11/30/2024 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 12/1/2024 12/31/2024 LVERN
Confidential Supply Data 2 of 2 9/23/2021
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Resolution No. 2023-21
Page 22 of 24
________________________
Exhibit 6
Min. Base
Flexibility
Requirement
Peak
Flexibility
Super
Peak
Flexibilty
Total Flexible
RA
Requirement
(A) (B) (C) (D) (E)
1 January 29.79 75.45 5.54 110.78
2 February 31.53 79.85 5.86 117.24
3 March 33.26 84.24 6.18 123.67
4April 32.51 82.34 6.04 120.89
5May 40.25 62.41 5.40 108.06
6June 42.26 65.52 5.67 113.45
7 July 42.78 66.34 5.74 114.86
8 August 42.85 66.44 5.75 115.03
9 September 44.52 69.03 5.98 119.53
10 October 28.00 70.91 5.21 104.11
11 November 28.01 70.94 5.21 104.15
12 December 24.42 61.86 4.54 90.82
A Month
B Requirement for Category 1 - Base Ramping Resources
C Maximum allowed use of Category 2 - Peak Flexibility
D Maximum allowed use of Category 3 - Super Peak Flexibility
E Total Flexible RA Requirement for City of Vernon
January - December 2024 Flexible RA Requirement
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Resolution No. 2023-21
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________________________
Exhibit 7
Effective
Flexible
Capacity
Flexible
Capacity
Category
(A)(B) (C)
1 Malburg Generating Station 105 1
2 H. Gonzalez 1 5.75 1
3 H. Gonzalez 2 5.75 1
A Designated flexible resource
B Designated Effective Flexible Capacity (Qualified Flexible Capacity by each Resource)
C Designated Flexible Capacity Category
January - December 2024 Effective Flexible Capacity
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Resolution No. 2023-21
Page 24 of 24
________________________
City Council Agenda Report
Meeting Date:October 3, 2023
From:Todd Dusenberry, General Manager of Public Utilities
Department:Public Utilities
Submitted by:Adriana Ramos, Administrative Analyst
Subject
Resource Adequacy Plan for 2024
Recommendation
A. Adopt Resolution No. 2023-21 approving and adopting the Vernon Public Utilities Department
Resource Adequacy Plan for 2024, which includes the coincident peak Demand Forecast, the
Planning Reserve Margin, the Qualifying Capacity Criteria, and the Qualifying Capacity from such
resources, the City’s Resource Adequacy and Supply Data and approving the resources used to
satisfy the California Independent System Operator’s (CAISO) tariff requirements and repealing
Resolution No. 2022-35; and
B. Authorize staff to submit the Vernon Public Utilities Department’s Resource Adequacy Plan
for 2024 and the Monthly Resource Adequacy and Supply Data to the CAISO.
Background
As the electric grid operator for the State, the California Independent System Operator (CAISO)
is responsible for maintaining a reliable electric grid. One of the keys to maintaining a reliable
grid is ensuring that the electric system has adequate resources to meet its electric demand. To
do this, the CAISO has established provisions in its Tariff 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, LSE 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 contributing to
the CAISO system peak. This is calculated by first establishing a monthly peak Demand Forecast
for the upcoming year and applying a projected load growth rate if appropriate. Based on staff
analysis, no load growth adjustment is appropriate for 2024. To establish the Coincident Peak
Demand Forecast for 2024, staff has used its monthly peak Demand Forecast (as listed in Table
1 of the Resource Adequacy Plan for 2024) 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 in Table 2 of the Resource Adequacy Plan for 2024.
(2) Planning Reserve Margin is defined as the amount of Resource Adequacy Capacity an LSE
must maintain above its coincident peak Demand Forecast. The Electric Utility governing board,
Vernon City Council, has established its Planning Reserve Margin at 15%.
(3) Qualifying Capacity Criteria is the criteria used to determine the type of resources that can be
used to meet an 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 any
product defined as a 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.
h. Battery Energy Storage System (BESS)/Non-Generator Resources: Power Supply
contracts for BESS or Non-Generator Resource as defined by the CAISO entered through
a power purchase agreement shall be eligible to count as Qualifying Capacity. The amount
of Qualifying Capacity shall be based on the NQC value as determined and listed annually
by the CAISO and the City of Vernon’s percentage share of NQC for each contract.
(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 units shall count towards the City’s flexible capacity requirement.
(6) Annual and monthly Resource Adequacy and Supply data - must be submitted to the CAISO
on the established templates and the set schedule dates. The Resource Adequacy data
templates shall identify all qualified resources committed to meeting 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 have 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 2024 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. 2023-21