1994 AGN OCT 18 I14 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of _October 18. 1994 TO: Honorable Mayor, City Council, and City Manager FROM: Thomas K. Clarke, Electric Utility Director Date: 10/11/94 SUBJECT: AUTHORIZE THE EXECUTION OF THE SUPPLEMENTAL AGREEMENT BETWEEN COLTON AND SOUTHERN CALIFORNIA EDISON COMPANY FOR THE REPLACEMENT CAPACITY RESOURCE FOR COLTON'S IDAHO POWER PURCHASE BACKGROUND Colton has in effect a 3 megawatt power purchase agreement with Idaho Power Company. This transaction has complied with the integration requirements of Southern California Edison Company as specified in the Integrated Operations Agreement. As a result of the Northridge earthquake last January, the Sylmar Substation sustained damage which was the delivery point of the Idaho power. Idaho has agreed to suspend all of the City's payments for the power until facilities are repaired so that deliveries may be made. STATEMENT OF THE PROBLEM It is not expected that the repairs at Sylmar will be of a nature whereby Colton could exercise its purchase with Idaho in the near future. In the meantime, the Integrated Operations Agreement allows for temporary replacement of an integrated resource. However, proper notification and agreements must be executed to allow for the replacement. The authorization requested herein will accomplish that, and permit the City to find an economical replacement of the Idaho power. ALTERNATIVES The Idaho transaction is one of the City's least costly power purchases. Without the replacement, the City incurs costs for power at the Edison Partial Requirements rate or other resources more expensive than what is available as a replacement resource for the Idaho purchase. Page 1 of 2 Item No.