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order to incorporate the interconnection of the Agua Mansa Power Plant into the requested <br />agreements. Due to the interconnected nature of the grid, the execution of the Letter <br />Agreement between SCE and City of Colton will allow us to interconnect AMPP with the SCE <br />owned Colton substation. SCE is still in the process of finalizing this Letter Agreement. <br />ALTERNATIVES: <br />The City has no other option than to interconnect with the existing City system which is <br />interconnected to the SCE system. <br />FISCAL IMPACT: <br />Pursuant to the February 26, 2003 letter agreement, the City paid an estimated cost of <br />$65,000 to SCE to engineer, design, and install required equipment. SCE is requesting an <br />additional $16,000 as part of engineering and design work. <br />The cost of equipment is included in the Agua Mansa Power Plant bond proceeds. <br />ENVIRONMENTAL IMPACT: <br />None <br />RECOMMENDATION: <br />The staff recommends that the City Council approve the draft Letter Agreement and <br />associated changes in the Service Agreement and Added Facilities Agreement with the SCE. <br />Further, the staff requests the City Council to authorize the Electric Utility Director to finalize <br />and execute the Letter Agreement with necessary changes in consultation with our City <br />Attorney. <br />Report Prepared by: Nitin Modi, Electrical Engineering and Power Resource Manager <br />REVIEW TEAM ONLY <br />City Attorney:Finance Director: <br />Assistant City Man ger: OTHER: <br />