(16)AR 020607 Impact Study Agreement with SCE

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ITEM #16 CITY OF COLTON MEMORANDUM FOR COUNCIL MEETING OF FEBRUARY 06, 2007 TO: Honorable Mayor and City Council FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Approve System Impact Study Agreement with SCE DATE: January 30, 2007 BACKGROUND: The City is currently operating under terms of Southern California Edison's (SCE) Wbolesale Distribution Access Tariff (WDAT). The 'WDAT provides for distribution service for generation from the Agua Mansa Power Plant. Power generated from the Agua Mansa Power Plant is only used to meet the city's electric load requirements:. however. the Electric Utility is now requesting that power generated by the Agua Mansa Power Plant be allowed to be transmitted to the California Independent System Operator Corporation (ISO) grid. The reason for the request stems from resource adequacy requirements as dictated by the ISO; to be able to include the Agua Mansa Power Plant for resource adequacy purposes, the plant must be able to provide power to the state grid if called upon in an emergency situation. Under existing terms of the WDAT, the power generated from Agua Mansa must stay within the City's service territory. in addition, to reduce ancillary services costs. the Electric Utility would like to use the Agua Mansa Power Plant to self - provide these services. but can on]-%- do so if the option exists to transmit power to the state grid. The Electric Utility completed an application for new WDAT service; upon their review of the application. SCE has determined that a System Impact Study is required. DISCUSSION/ANALYSIS: The System Impact Study will determine the adequacy of SCE's electric system that is required to provide distribution service for the Agua Mansa Power Plant. The study ,N ill include a determination of whether or not any modifications are necessary to SCE's distribution system to accommodate the transmission of an additional 43 MW over their lines. The study will also include. if necessar\ . a General description of any upgrades. additions. modifications. or other facilities necessary to provide this service. and include the study conditions and assumptions.. load flow analysis. and post transient voltage analysis. The cost of the System Impact Study is estimated to be $40.000. to be paid in advance. The Cite may tenninate the Study at any time in writing. and will be responsible only for those costs actually incurred or irre- ocably cormnined to be incurred. SCE estimates that it \rill take 60 calendar days following receipt of an executed copy of the agreement and payment for completion of the Study.