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JUN -23-1997 11=08 <br />I. Chapter 1 SYSTEM OVERVIEW <br />1.1 BACKGROUND <br />P.03 <br />The Cities of Azusa, Banning, and Colton (Cities) are three municipal utilities located in the <br />Southern California Edison (SCE) electric control area. Azusa is located in the county of Los <br />Angeles, Banning in Riverside county and Colton in San Bernardino county. Until the early <br />1980's, Cities procured all their electric load requirements from SCE to resell to Cities, retail <br />customer, since then Cities have diversified their resource portfolios to procure economical power <br />resources from sources other than SCE. <br />In 1990, Cities entered into a comprehensive Integrated Operations Agreement (IOA) with SCE, <br />which allowed flexibility to Cities to procure economical power resources from entities other than <br />SCE and integrate such resources operationally with SCE and receive the economic benefit of <br />such resources to serve each Cities respective retail customers. Because of relative small size of <br />Cities, Cities have historically procured resources jointly in order to realize economy -of -scale in <br />power purchasing: Because of this joint power procurement strategy, Cities power resource <br />portfolios are almost identical, only varying in the amount of megawatts procured. <br />1.2 SYSTEM CHARACTEAISTICS <br />Azusa: <br />Azusa is located 22 miles northeast of downtown Los Angelesin the San Gabriel Valley and a <br />Population of approximately 43,000. The Azusa Light and Water Department provides water and <br />electric services to customers within the city and also provides water service to some customers in <br />two neighboring cities. The electric utility has a service area of approximately 8 square miles and <br />serves over 14,000 customers. Azusa's historical electric peak demand and energy requirements <br />are summarized below_ <br />Year Peak Demand (MW) <br />Energy (MWh) <br />Load Factor <br />1992 47.5 202,196 48.6% <br />1 <br />