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Item #9 <br />CITY OF COLTON <br />AGENDA REPORT <br />For the City Council Meeting of April 15, 2003 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />APPROVAL: DARYL PARRISH, CITY MANAGER <br />FROM: THOMAS K. CLARKE, UTILITY DIRECTOR -V <br />SUBJECT: Approval of Letter Agreement with SCE to Interconnect Agua <br />Mansa Power Plant <br />DATE: April 7, 2003 <br />BACKGROUND: <br />The construction of Agua Mansa Power Plant (AMPP) is about to finish. As part of the <br />project, the output of the generation will be interconnected to our Colton-Drews 66 kV <br />transmission line. The City entered into a combined study agreement and letter agreement to <br />allow SCE to complete an interconnection study and place an order for the material for <br />required changes at their facilities at the SCE owned Colton substation and some of the <br />equipment needed at AMPP. This cost does not include any cost to change out the breakers, <br />if any, at their various facilities impacted by the AMPP project outside of City's system. <br />The existing Service Agreement with SCE allows City to receive wholesale distribution service <br />from SCE. The Added Facilities Agreement authorizes SCE to design, engineer, construct, <br />and operate the required facilities to incorporate any improvements in the City's electric <br />system. Both of these agreements need to be amended to incorporate AMPP with our <br />system. <br />The AMPP is a fast track project with commercial operation expected by June 2003. <br />DISCUSSION/ANALYSIS: <br />The AMPP project is right on schedule to be energized on May 7, 2003. Due to limited time <br />between now and May 7th, it is important to finalize and execute the Letter Agreement and <br />associated changes in the existing agreements. <br />It is recommended that the City enter into the Letter Agreement which authorizes changes to <br />the Service Agreement for Wholesale Distribution Service and Added Facilities Agreement in <br />