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x <br />Angeles -City Agreement, consistent with the ISO Tariff and procedures in effect at <br />the time this Agreement and the Procedures are entered into. <br />2.5 Therefore, the parties wish to enter into this Agreement to reimburse <br />City for ISO charges related to schedules of the Residual Rights, <br />3. AGREEMENT:' In consideration of the covenants and conditions set forth <br />herein, the Parties agree as follows: <br />4. DEFINITIONS: Terms used herein with initial capitalization, whether in <br />the singular or plural, shall have the meanings as defined below. <br />4.1 Agreement: This SCE -Colton Palo Verde -Sylmar Scheduling Charges <br />Agreement. <br />4.2 Exchange Asreement: The Los Angeles -Edison Exchange Agreement <br />between LADWP and SCE, executed as of December 18, 1987. <br />4.3 ISO: The California Independent System Operator, as defined in the <br />ISO Tariff, or its successor. <br />4.4 ISO Tariff. The ISO Operating Agreement and Tariff filed with the <br />Commission in Docket Nos. EC96-19 and ER96-1663, as it may from time to time be <br />amended, revised, or superseded <br />4.5 Los Angeles -City reement: The Los Angeles -Colton ANPP/Sylmar <br />15 MW Transmission Service Agreement between City and LADWP executed <br />December 16, 1994. <br />4.6 Procedures: The Operating Procedures for Firm Transmission Service <br />between the Department of Water and Power of the City of Los Angeles and the <br />2 <br />