Text

Integrated Operations Agreement Between City of Anaheim & Util
	ML20126K018
Person / Time
Site:	San Onofre
Issue date:	11/29/1977
From:	Hoyt G, Myers E; ANAHEIM, CA, SOUTHERN CALIFORNIA EDISON CO.
To:	;
Shared Package
ML20126J991	List: ML20126J988; ML20126J993; ML20126J997; ML20126K001; ML20126K005; ML20126K010; ML20126K012; ML20126K018;
References
	NUDOCS 8105080263
	Download: ML20126K018 (25)
	v • d • e

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TABLE OF C0!!!ISTS 1 I l 2 p l 7 Sectier. Title Pace l I 4l 1 PARTIES 1 i i I 5l 2 RECITALS 1 j 6 3 AGREEMENT '3 7 4 TERM AND RELATION TO SETTLEMENT AGREEMENT 3 8 5 DEFINITIONS 5 9 6-ADMINISTRATION 14 10 7 JOIN'T PLANNING 18 11 8 QUALIFICATIONS AND PROCEDURES 12 FOR INTEGRATION 21 13 9 DETERMINATION OF RATED CAPABILITY OF GENERATING RESOURCE 36 10 SCHEDULING AND DISPATCHING 41 5 11 OP,ERATION AND MAINTENANCE 44 12 RESERVE OBLIGATIONS 47 7 13 FACILITIES AND EQUIPMENT TO BE 10 PROVIDED AT THE POINT OF DELIVERY, A POINT OF ATTACHMENT OR A POINT ~19 OF INTERCONNECTION 47 20 14 LOAD CURTAILMENT AND LIMITATIONS ON NEW LOADS 48 21 15 PARTIAL REQUIREMENTS SERVICE 49 22 16 REPLACEMENT CAPACITY AND 23 CONTRACT ENERGY b7 24 17 ENERGY FROM CITY CAPACITY RESOURCE PRIOR TO ITS DATE OF FIRM 2 OPERATION 66 26 18 NON-FIRM ENERGY 67 k (i) 9y-- y w a ,ar + e'ewv**---e-*-e w-ew+-=---nm v1w--wr------- w-w-= rrw sr-w r w*4

5 e ;.... T i '. '. : i l o su ene er ne es:scemv A33 rvarec I;;E R G i T 7.0.. : !*. ~AFACITY 3i RESOURCES 71 l \\ l 4 20 NCN-;NTEGRATE: C:!Y RISOURCE: SALI OF CAPACITY AND ENERGY 74 i l 5 I 21 FIRM TRI."EMIES:C:? EER" ICE FOo CITY 6 CAPACITY RESOURCES 75 7 22 BASIS FOR CHARGES FOR TRANSMISSION SERVICE 81 8 23 TRANSMISSION LOSSES 84 9 24 ARSITRATION 84 10 25 BILLING AND PAYMENT 88 11 26 METERING 89 12 27 REGULATORY AUTHORITY 92 13 28 UNCONTROLLABLE FORCES 93 14 ( 94 29 LIABILITY 15 30 TAXES 95 31 NON-DEDICATION OF FACILITIES 96 18 33 WAIVERS 97 39 34 RELATIONSEIP OF PARTIES 97 20 35 LICENSE TO INSTALL FACILITIES 98 21 36 GOVERNING LAW 98 22 37 C APTIONS AND HEADINGS 98 23 38 NOTICES 99 24 "^ ^ 25 1 26 .k (ii) _s.

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.n...... .--n. rs. ::.u., a v a nn.,2ci s m.v. oun..w. 6 APPENDIX D NETWORK TRANSMISSION SERVICE D.0 7 APPENDIX E POINT-TO-POINT TRANSMISSION 8 SERVICE E.0 9 t 10 11 12 13-t 14 15 16 17 18 19 20 21 .22 23 1 24 25 26

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l 1 INTEGRATEC CPEEA!!CNS AGREI.'-EE! i P E'~/ E E!* I !EE CITY CE ANAEC:M 4 AND 5 l SOUTHEFN CALIFORNIA E0ISCN COMPANY 1 ~ 6 7 8 1. PARTIES: The Parties to this Agreement are the City of 10 Anaheim, a municipal corporation of the State of California, 11 and the Southern California Edisen Ccmpany, a California 12 corporation. 13 2. RECITALS: This Agreement is made with reference to the following facts, among others: i 15 2.1 Edison is a utility engaged in the business of le generating and transmitting electric energy in the States 17 of Arizona, California, Nevada and New Mexico. Edison is 18 further engaged in the business of distributing such energy 19 in California. 20 2.2 Edison owns and operates a system of generation, 21 transmission and distribution facilities which is presently ^ 22 directly interconnected, pursuant to interconnection agree-23 ments, with Los Angeles Department of Water and Power, 24 Arizona Public Service Company, City of PLsadena, Pacific 25 Gas and Electric Company, San Diego Gas & Electric Company, 26 Imperial Irrigation District, United States Bureau of Y ~ e ~ 4

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'c rz Pacific Pc.'er P-ran., Tucern C-?? & Electric 4'i Cc pany. El Paso Eleccric Ccapany, and Puolic Service 5j Cc pany cf New Mexico.

Edison also has concractual arrange-6 ments with Metropolitan Water District of Southern Califor-7 nia and the State of California Department of Water Resources 8 for the purchase and sale of capacity and energy. 9 2.3 City owns and operates a utility which presently 10 p6rchases from Edison electric capacity and energy, for 11 resale and for its own use, under resale rates filed by 12 Edison with the Commission. City also purchases energy 13 from Nevada Power Company in the State of Nevada which is 14 transmitted to City by Edison. 15 2.4 City owns and operates a system of transmission is and distribution facilities. 17 2.5 City desires to engage in the business of con-18 tracting for, or owning, constructing, operating and 19 maintaining its own power supply and transmission system. 20 2.6 Edison and the Cities of Anaheim, Banning and 21 Riverside, entered into the Settlement Agreement on 22 August 4, 1972. 23 2.7 In order to better meet the power requirement's 24 of the respective Parties and obtain operational economies 25 on their respective systems, the Parties agree to integrate 26 their present and future Resources, and have negotiated : 1 i

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5 2.5 A eng c:Per things, this Agreemen; is intendef :: l l 4 provide for Edis:n :: furnish the :::::i:y snf ensr:; nc:cs-l I 5 i sary to meet Ci y's Lead, to the er,:cn: n:: :::vifsf by 1 6 City Integrated Pesources. 7 3. AGREEMENT: The Parties agree as fo11cws: 8 4. TERM AND RELATION TO SETTLEMENT AGREEMENT: 9 4.1 This Agreement shall beccme effective on the date 10 following executio,n by both Parties when accepted for filing 11 by the Commission, but if upon such filing the Commission 12 enters upon a' hearing to determine whether this Agreement is 13 just and reasonable, it shall not become effective until the 14 date when an order no longer subject to judicial review ( 15 has been issued by the Commission determining this Agreement 16 to be just and reasonable-without new conditions unaccept-17 able to either Party. It shall remain in effect for 50 18 years from such date, except as provided in Sections 4.2 and 19 4.3 below. 20 4.2 Termination Date: This Agreement may be terminated 2~' as follows: 22 4.2.1 At any time by written agreement of the 23 Parties. 24 4.2.2 Upon 30 days' advance written notice by City, 25 to Edison, if no City capacity Resource has been accepted for 26 integration and listed on the Resource Schedule pursuant to i

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.s Party to the --her. 4 4.2.4 Upon five years advance written..::ict f::: i i

i City to' Edison if Edison tenders for filing ( unf e r II::i:..

e 6 205 of the Act) a change in rates which affects In egra:ed operations and which creates a substantial detriment to City; provided, that such five years written notice shall be 8 given to Edison not later than 90 days after it has been 9 lo determined by final order of the Commission no longer sub-11 ject to judicial review that such change in rates is just 12 and reasonable. 13 4.3 Effect of Termination: If notice of termination 14 is given by either Party, the Parties shall, upon recuest i 15 of either Party, commence negotiations within 90 days af ter 16 said notice is given to negotiate in good faith a new 17 arrangement, to become effective upon termination of this 18 Agreement, for furnishing services referred to in the 19 Settlement' Agreement. If the Parties fail to agree thereon 20 within one year after notice of termination, Edison shall 21 tender for filing with the Commission (under Section 205 22 of the Act) proposed new arrangements to establish the ( i 23 rates, terms and conditions for providing such types of 24 services, but Edison shall not seek to make any proposed 25 arrangement effective until it has been determined by final order of the Commission no longer subject to judicial,l il e. _ _ _ _ _. O' M 4 m e edthemes e,.. v>,g ,m,.. ,-,,,,.e,

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,w :::: n 7 :.- a 3 men s be:::e ef fe::1te under tr.e A:: y said final ::de: i i u::::a' reriew, 4l.theC:mmiti:nnr10ncersuber i 5 de:er ining that the'new arrangements arc :ur-anc reas:na:1e. I 6 4.4 Relation to Settlement Acreement: 7 4.4.l' The Settlement Agreement shall not be amended 8 or superseded by this Agreement, except that the provisions I of the Settlement Agreement which are inconsistent with 10 those of this Agreement shall be superseded during the term 11 of this Agreement. 12 4.4.2 This-Agreement shall not amend or supersede 13 Section 4.1.6 of the Settlement Agreement. 5. DEFINITIONS: The following terms, when used herein with 14 15 initial capitalization (whether in the singular or plural), le shall have the meaning specified: 17 Federal Power Act or successor act. 5.1 Act: 18

5.2 Acreement

This Integrated Operations Agreement 19 between City and Edison. 20 5.3 Authorized Representative: The representative 21 designated by each Party to,act in such Party's behalf with respect to those matters specified herein to be the functions 23 of such Authorized Representative. ~ 24 5.4 Automatic Generation contrel: The regulation within 25 a Control Area of the electrical output of Resources in res-26 pense to changes in frequency, time, tieline leading, or the i ! 1 ji I

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C..... . :::h :th::. :: :: :: --i ::f- -- r:5-f-1 I i 2' uled Control Area frecuency, :ime and -he es a:1:sned in:er-3 change with other control areas within prede:srained liri:5. i i 5.5 Cacaci:v Credi : he sum of the.a:e: ::::1.lities o I j 5} of the existing City Capacity 7escurces les: Ci:r'; ::..:ricu-6 tion to reserves as calculated pursuant to Se:-icn 12.2, 7 reduced by transmission losses to the point of Celivery. 8 5.6 Certificated Service Area: That area served by 9 Edison in central and southern California, as delineated on 10 maps prepared by Edison and filed with and accepted by the 71 California Public Utilities Commission from time to time. 12 Such approximate area at the time of execution of this 13 Agreement is shown on Appendix A hereto. 5.7 Citv: The City of Anaheim. 15 5.8 City Capacity Fesource: Any existing or planned 16 City Resource which has been accepted by Edison for inte-17 gration in accordance with Section 6 and for which City is 18 or shall be receiving Capacity Credit. 19 5.9 City Incremental cost: The cost for energy to be 20 determined as set forth in the Supplemental Agreement fer 21 each City Integrated Resource, (1) in the case of a City 22 generating unit, on the basis of the weighted inventory 23 cost of fuel, average heat rate, City's other cests associ-24 sted with the production of such energy, transmission 25 losses, and incremental transmission costs; and (ii) in the case of a City purchased power arrangement, on the : s

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.... :..... t ; *_ ::ansmissier certr. s i 5._. ~_ rT.issien: fe: era. _f. Erg,. .a._..... 5 ~2 ' s ; ; ;.~ l 07 success:r. 1 5.;; Communicatien Ecuirrent: Iquip=ent and associaref j E 6' facilities used to provide necessary cc:=unication and con-7 trol.func ions on Resour.ces and Transmission Facilities,.and 8 between the systems of City and Edison, including, but not 9 limited to, microwave, cable, open wire and cable carrier, 10 power line and ground wire carrier, ultra-high f requency r 11 and very-high frequency radio, dispatch telephone, tele-- 12 phone tieline, digital dispatch security monitoring system, j or any combination thereof. '~ 14 5.12 contract Enercy: Energy purchased f rom Edison by 15 City pursuant to Section 16.2. 18 5.13 Contract Enerov Cost: The cost of Contract Energy 4 17 as Setermined pursuant to Section 16.2.2. 18 l 5.14 Control Area: All or part of a Party's Resources, ) i 19 Transmission Facilities, and distribution facilities, or 20 a ecmoination thereof with those of Third Parties, to which ) 1 21 a co==on Automatic Generation Control scheme is applied. 22 5.15 Date of Firm Oceration: The date when (i) a City 23 Capacity Resource has demonstrated that all essential fea-24 tures and equipment can reliably operate simultaneously so 1 25 as to deliver energy into the Edison Control Area at its j i 26 Rated Capability, and such City Capacity Resource has been : s

1 ---_; g,.75 4-. ..c4... .. ras.. ..e ,2_.2 1:aci:. .::..;;=,- ] cri:ing ry Edisen a: :n :: ep--- = y l i:: seneduling and dispa:ching, er,11) :ne da e agreed up:r j 4 in the Eupplemental Agree =ent wher City tha"1 re:e:te ~ Ipa-5 ci: Credit for a planned City Caps:ity.:.es:urce, whi: heter -l 6i shall be later. l 7 5.16 Date of-Initial Coeration: The date, agreed uoon 8 by the Authorized Representativest when a City Capacity 9 Resource is first operated in synchronism with an estab-10 lished. control area. s 11 -5.17 Edison:- Southern-California Edison Company. 12 ~ Firm Load: The electrical requirements of a Party, '5.18 13 including (i) its customer obligations, (ii) its firm con-t tractual obligations to provide firm energy in connection with arrangements for City Capacity Resources as provided 16 in Section 8.1.1.2 which are integrated in accordance with 17 this Agreement, and (iii) its contractual obligations to sell 18 firm capacity or firm energy, or both, to a Third Party. Such 19 electrical requirements shall not be interruptible except 20 for Uncontrollable Forces or curtailments and shall not i 21 include interruptible sales of capacity or energy, or both, 22 by a Party to a Third Party. 23 5.19 Integration-Agreement: This Agreement, any. i 24 Supplemental Agreement or Transmission Service Agreement, 25 executed as appropriate for a transaction to implement the 26 integration of a Resource as an Integrated Resource or -B- .'\\, i ~., _ _, _. _. _ _. _ _. _ _ _ _ _.. _ _ _ _ _ _ _, _ _ _ _____ _,

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5 5.21 Inte::sted Resource: A City Res0erre whie'- has 6l been integrated and for which City is receiving Capacity 7 Credit, or credit for energy scheduled and dispatched there-8 from, or both. 9 5.22 Load: The Firm Lead of a Party and its contractual 10 obligations to sell capacity or energy or both, to its cus-11 tomers or to Third Parties, on an interruptible basis. 12 5.23 Non-Firm Enercy: Energy acquired by City from a 13 Third Party which is interruptible with or without notice 14 from such Third Party and which has been integrated by Edison, g 15 or energy integrated by Edison from a Resource acquired by is City which has not been accepted for integration by Edison as 17 a City Capacity Resource. 18 5.24 Partial Recuirements Rate: That resale rate 19 schedule under which Edison shall provide Partial Require-20 ments Service. 2~' 5.25 Partial Recuirements Service: That resale service 22 rendered by Edison pursuant to Section 15. Such Partial 23 Requirements Service shall not include sales by Edison to 24 City of Replacement Capacity or Contract Energy. 25 5.26 Party: City or Edison. 26 5.27 Point of

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0-Party rr a Third Party fer the ace:unt of the c:her Par:-. l 6 whi:h peint shall be identified in the agplicable Transmission 7 Service Agreement. 8 5.28 Point of Delivery: A point where the electrical 9 conductors of Edison connect with those of City and where 10 the delivery of capacity or energy or both to meet City's 11 Lead is deemed to take place between the Parties as de-signated in the applicable Transmission Service Agreements. f 12 13 5.29 Point of Interconnection: A point where transfer 14 of capacity or energy or both take place between control areas. 15 5.30 Rated Caoability: City's share of a unit's maxi-16 mum level of net generation, including a purchase from a 17 specific generating unit owned by a Third Party, expressed 18 in kilowatts, that can be continuously maintained, with 19 only ordinary maintenance and adjustment, under physical, 20 regulatory, legal, warranty, or other restrictions at any 21 given time (reduced by transmission losses to the Edison 22 Control Area) as determined by operating tests of the type 23 nor= ally used by Edison to establish the capability of its 24 ! generating units. The Rated Capability of a City Capacity 25 Resource which has been pucchased by City frem a Third 26 Party's system shall be deemed to be its maximum firm rate 10 - 1 i _ _1

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i.r : d :y C i t;. t 5[ pursuant to s e c-icn 16.1'. 2 f :::- (:) :he 50.c.d 1 d "sinten-6 ance Account, ('ii) a source cu: side Edison's Centrol. 7 Area or (iii) otherwise from Edison's system, to replace 8 kilowatts of Rated Capability unavailable from a City 9 - Capacity Resource. i 10 5.32 Resource: Any source'of electric capacity or 11' energy or both owned in whole or in part by a Party or 12 available to it by contract. 5.33 Resource Schedule: t 13 The latest listing of fore-14 cast Loads, planned Resources and Transmission Facilities 15 used to meet the Parties' forecast Firm Loads, which 16 listing has been prepared and filed by Edison on or about i 17 March 1 of each year with the California Public Utilities 18 Commission under that Ccmmission's General order 131, or 19 a document which succeeds such General Order 131 and which \\ 20 contains the recuired data. 21 5.34 Scheduled Maintenance Account: That account 22 established annually for each City Capacity Resource pursu-23 ant to Section 11.3, from which City may from time to time 24 acquire frem Edison f.eplacement Capacity for that City 25 Capacity. Resource in lieu of otherwise acquiring such 26 Replacement Capacity from Edison or Third Parties outside l L b 11 - ymw-n..w+--g3-+ y 9,, y pyv p.gy -.v..,9w,ag_.g-_.,=-,pw .-g. y.,---._- w.-m -..,.w.,. ..-.,ew-.s- .w.

l i 1 ...aw.. e ...........s.. 5.35 Settlerent Acreement: '!ne agreemen ce:wec., j ~ t Edison and the Cities cf Anaheim, E a.-.ing and.:.iv e : s id e, i ~ ' I 4 . into on n.ugus , W..1;n Was SrOeg!s; 0;

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5f Ccmmission, as set forth in Opinion N. 554, issued :Irrh I?, i 6 1973, in Docket No. E-7616. 7 5.36 Suecle= ental Acreement: That agreement executed 8 by the Parties by which the Parties agree to integrate a City 9 Besource or a City Transmission Facility or both. 10 5.37 Tecder Date: That date as =arked on Edison's 11 submittal as having been received by the Commission, which 12 submittal thereafter is accepted for filing by the Commis-13 sion. 14 5.38 Third Partv: An electric utility, pool or gener-15 ating agency, not a Party to this Agreement. 16 5.39 Transmission Facilities: Equipment required for 17 the transmission and related transformation and switching of 18 electricity. 19 5.40 Transmission Service Acreement: One of the agree-20 ments under which Edison provides transmission service to 21 City. Such agreements shall be in the general forms set forth 22 in Appendices C, D, and E hereto. 23 5.41 Uncontrollable Force: Any cause beyond the control 24 of the Party affected, including, but not limited to, failure 25 of or threat of failure of facilities, flood, earthquake, 26 storm, fire, lightning, epidemic, famine, war, riot, civil 12 - + y- ,.w.. ,w w-e e

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1 l or authority which, by exercise of d;s diligence and f:rssign, e 6 such Party could nec reasonably have been expe::ed t0 avoid and 7 which, by exercise of due diligence, it has been unable to 8 overcome. 9 5.42 Willful Action: 10 5.42.1 Action taken or not taken by a Party at the 11 direction of its directors or other governing bcdy, officers, j 1 12 or employees having management or administrative responsi-13 bility affecting its performance under an Integration Agree-14 ment, which: 15 5.42.1.1 Is knowingly or intentienally 16 taken or failed to be taken with conscious indifference j 17 to the consequences thereof or with intent that injury or j '18 damage would result therefrem; 19 5.42.1.2 Has been determined by final 20 arbitration award or judgment or judicial decree to be a 21 material default under an Integration Agreement, and which 1 action occurs or continues beyond the time specified in such arbitration award or judgment or judicial decree for j 23 l curing such default, or, if no time to cure is specified l ~ 24 I 25 l therein, occurs or continues thereafter beyond a reasonable 26 time to cure such default; or i l f { i' l l 1 l -^-----------

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[' .42.1 As used in this definitir-- 6 5.42. .1 Willful Action'd:ss n:t includs 7 any act or failure to act which is merely involuntary, acci-8 dental or negligent. 9 5.42.2.2 The phrase " employees having man-10 agement or administrative responsibility" means those employees 11 of a Party who are responsible for one or more'of the executive ~ 12 functions of planning, organizing, coordinating, directing, 13 controlling, and superviaing such Party's performance under the 14 Integration Agreements, with responsibility for results. 15 6. ADMINISTRATION: 16 6.1 In order to freely exchange information and deter-17 mine procedures regarding the planning, design, engineering, 18 construction, operation and naintenance activities required 19 under any Integration Agreement, each Party shall, within 10 20 days following execution of this Agreement, appoint an Author-21 ized Representativo. For such purposes, the Authorized 22 Representatives shall have the following functions: 23 6.1.1 To engage in joint planning pursuant to 24 Section 7, to exchange information necessary for the pre-25 paration and modification of the Resource Schedule, including 26 forecasts of Load, loss of load and other reliability and 14 - a 'YM**9=ne--r-m.,-p-w<-g--yy. ,,,4,

i i !,j .S ......a-: ..... 2: ........ ~ l in f :.e4 as 2 cr.a:. e s :.; a..nei e r au-hori:ed :3 a :-ar:; :: 1:s 'cada, 1.escur:e and Transmissi:.- T :ili:le: 1.. .dii l i ( ' l i r. d. -; -he.. e f f ective 7.er:ur:e I:: :: d s. 5l 1,. To pre.a e a..d

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.. e ~.- '-- 8 for approval, Supplemental Agreemen: per:aining te ci y 7 Resources or City Transmission Facilities, and Trans-8 mission Service Agreements. 9 6.1.3 To prepare and recommend to the Parties, i 10 for approval, methods of operation to be followed by the 11 Parties. 12 6.1.4 To review, if necessary for the purpose 13 of operating the systems of the Parties in an integrated 14 manner, the following: 15 6.1.4.1 The general engineering and design 16 of a Party's planned Resources and Transmission Facilities. I' 17 l 6.1.4.2 The proposed operating and 18 scheduling provisions to be contained in any contract re-19 lating to the planned purchase of a Fesource by a Party. 20 6.1.5 To discuss and make recommendations per-21 taining to estimated and actual Cates of' Initial Cperation 22 and Dates of Firm Operation. 23 6.1.6 To discuss and =ake recommendations per-24 taining to estimated and actual Ea:ed Capabilities. 25 6.1.7 To confer from time to time on the desir-I 26 able characteristics, design criteria and contractual 1, i

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,;;;33 3ng i 3' Cecmunication I:uipmen:, sc thz the Far::ss have a reas na::s i 4, ' pericd c exchangs vie : :n 22:? :hars:::r;;;.::, cr;;sr;L 'nf f j arrangements; pr:vided,':hz: 22:h'exchanre rh:11 n: Orta e 6 any responsibill:y on the part of the other Farty as to the i 7 adequacy or capability of the Resources, Transmission Facili-8 ties or' Communication Equipment of the first Party, but shall 9 only beLintended to enable the other Party to evaluate the 10 -reliability of the first Party's Resources, Transmission 11 Facilities and Communication Equipment. 12 6.1.8 To' exchange information'regarding the en-13 gineering, construction and contractual progress of a Party's 14 new Resources, Transmission Facilities and Communication 15 -Equipment. 16 6.1.9 To be present at performance tests on a Party's Resource or Transmission Facility. 18 6.1.10 To review procedures to be followed by the 19 Parties relating to the scheduling and dispatching of capacity 20 and energy by Edison's dispatcher from City's Resources. Such 21 procedures shall conform to good electric utility practice. 22 6.1.11,To periodically discuss and recommend for 23 approval by the Parties a coordinated maintenance schedule 24 for Integrated Resources, Edison's Resources, and Transmission 25 Facilities of the Parties and keep each other informed as to 26 changes thereto. 16-i S-e eaewa'-- g*'yVe* g y y- - py--gy p-eg-ww %--+ye g w-5 - ww-w- ~<-+-%g-- + g Mg .-e ,g-r-v---- ,e-r -~t---

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' re:0mmend to their respecti"e Partie's a plan fer ass:enin: i i = I ~l. responsibility to each Party for the cwnersnio, cost, ur-i I ' 6 ni.hing, installation, operation and =aintenance of such 7 Communication Equipment, and to recommend to their respec-S- tive-Parties acquisition, installation or modification of 9 such Communication Equipment. 10 6.1.13 To rev'iew the selection by City of faci-11 lities and equipment required fcr Autcmatic Generatien 12 Control prior to such facilities and equipment being acquired 13 I by' City. 14 6.1.14 To establish the Point of Delivery, a Point -15 of Attachment or'a Point of Interconnection, recommend any 16 modifications thereto, and recommend to their respective 17 Parties a plan for assigning responsibility to each Party -18 for the ownership, cost, furnishing, installation, operatien 19 and maintenance of Transmission Facilities at and between 20 the Point of Delivery, a Point of Attachment or a Point of 21 Interconnection. 22 6.1.15 To exchange power flow studies and to 23 discuss nominal and emergency voltages and power flow capa-24 i bilities for Transmission Facilities at or between the l Point of Delivery, a Point of Attachment or a Point of 26 Interconnection. t i +mpva..n,v.- y ,9-y., sp-eW.m y g. yeyye,--,w,ay.y4-9.-

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1 l '.1.lf T: r.:;r.:nf : ; r. :::, r - :-- :- ---i-- I 1,, relating to Lcad curtailment and 'imitati:ns n ne- 'ta:1. 2 2 6.1 17 To selec: ar itra::rs.ursuant :o Es :::n j 1

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j l l 6.1.15 To review senedulin; and diz a :hing :nargs: I ) i 6l in ac: -dance with Section 10. ) 7l 6.1.19 To review procedures to be followed by the 1 1 i 8 i Parties relating to billingr, billing credits, sales and pur-i 1 9 chases of excess capacity and energy. 10 6.2 The Authorized Representatives shall have no authority to modify, change, add or eliminate any terms or i I 12 { conditions of any Integration Agreement. J I 13 6.3 Each Authorized Representative may delegate the i ( 14 t l i actual performance of any of the functions listed above, but f 15 all communications between the Parties relative to any ) 16 Integration Agreement shall be through the Authorized Repre-17 3 sentatives, unless otherwise agreed. l I 18 6.4 Any action taken or determination made by the 19 Authorized Representatives shall be reduced to writing. l 20 l 6.5 Whenever a Party is required to use its best efforts l 21 I under an Integration Agreement, the other Party shall have the ' 22 right to request that the first Party fully explain in writing l l 23 i f through its Authorized Representative the efforts made and the l 24 reasons and related facts for its actions or non-actions. l 1 25 l 7. JOINT PLANNING: The Parties, through their Authorized l \\ 26 Representatives, shall engage in joint planning for Leads, i 1 9 I : i l

a..t.. p, $s_tyt,7 c.--.....,.in. 1

nd ::nt: :.::sf matters by = cans cf mee::ngs :nf sa:nsn;is

f informa:icn is fclicws:

7.1

in: ':t::in s:

The Authori:sf Tirrer:.::::ce: hall ass:, f;:in; the calendar year quarters sc-fr:t.- I I relow, (and at other apprcpriate times), to discuss and 7 l exchange information including but not limited to the 8 gallowing: 9 7.1.1 During the first quarter, plar.ned Trans-10 mission Facilities, Communication Equipment, Points of 11 Interconnection, the Point of Delivery, Points of Attachment 12 and facilities and equipment necessary for use at such points. 13 7.1.2 During the third quarter, forecasts of Loads. 14 7.1.3 During the fourth quarter, planned Resources. 15 7.2 Plannine Period: Forecasts and plans to be dis-16 cussed, and information pertaining thereto to be exchanged 17 shall span or be contained within the period to be covered 18 in the next Resource Schedule. 19 7.3 Purcose of Meetings and Exchanges: The purpose of 20 such meetings and exchanges of information shall be to' enable 21 ' each Party to obtain sufficient information as to the fore-22 i casts of Loads and plans for Resources and Transmission 23 Facilities of the other Party so that understanding and 24 agreement can be reached as to the following: j 25 ) 7.3.1 Implementation of procedures and qualifica-tions for integrating a City Resource or a City Transmission w f

( 2 ,3,-

3nseissien servie, arrange ents, j

3 - ' ? 01-Paseurces : be included in the 4 Resource benedule. =- i ~.3.4 0:ner matters related to an Integration 6j A g, 3 3,_,, 7 7.4 Transmission Plannine Studies: Transmission 9 8 planning studies relating to future power supply or trans-9 m'ission plans may be conducted jointly by the Parties. The 10 cost of such studies shall be shared as agreed to by the 11 Parties. 12 7.5 'Cacability Ratino of Transmission Facilities: Each 13 Party shall, for the purpose of providing the other Party with information regarding the operating capabilities and 15 limitations of its Transmission Facilities, establish capa-16 ' bility ratings for its Transmission Facilities. Such capa-17 bility ratings shall be established (i) in accordance with 18 good electric utility engineering and operating practices 19 and (ii) from stability studies of the systems and facilities 20 of City, Edison and Third Parties, whlch studies shall give 21 weight to generator and transmission line impedances, 1 22 transients, series ccmpensation, parallel circuits, conductor material and size, and other parameters. Such studies'shall be made available for review by the other Party's Authorized 25 Representative upon request. 28 7.6 Review by City of Resource Schedule: Edison shall,.l 'i q. -~ i

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:::m:: in -ha yes: :: the Calif:rn:a

~ urli: Utili:ier cr--irrir. rr i : ru :ers::. Sdis:n shall I ake su:h preli-i 77; Percur:e Schedule available :: City (i) I as soon as such preliminary Resource Schedule has been pre-7 I pared and is available for review and comment by both Parties 8 and (ii) prior to making the submittal to that Commission. 9 City shall furnish to Edison any comments City may have as 10 soon as possible. This review procedure shall not obligate 11 Edison to delay or defer any submittal of the Resource 12 Schedule to the California Public Utilities Commission or 13 its successor. 14 7.7 If a dispute arises as to the Date of Firm Operat.on 15 shown, or not shown, for a Party's Resource on a Resource 16 the Parties ' hall endeavor to resolve the dispute.

Schedule, s

17 If such resolution cannot be reached within 90 days following 18 the date when one Party notifies the other Party that a dis-19 pute exists, the dispute shall, unless otherwise agreed, be 20 I submitted to arbitra' tion pursuant to Section 24. Until such 21 dispute is finally resolved, billings and other necessary 22 actions under any Integration Agreement shall be based upon 23 the Resource Schedule as last submitted. Upon final resolution-24 l cf the dispute, retroactive adjustments shall be made, in 25 I accordance with such final resolution, as soon as possible. 26 8. QUALIFICATIONS AND PROCEDURES FOR INTEGRATION: i ~. - -- _.._,m.,. mr, ..m.. -4. im,

l 1 I -e... c.,.c4.v c4.,. -...--.e....;. l 1.. egrate a :.E :.:.-.as i 0. 3 !a._ ..:3 Resource es: :_; cr par: of its fir ~;ad, tr.d Id:::n rnal; use ::: 4

cffer : :: in:sgrats r:r'- - rp s e d ~i ~:;t:ity Re-g i

urce. : :~ided it meets the ruz.ifics:icns f:r ir.tegrati n j

i 6 set f e r t;- in Secticn E.1.2. 7 8.1.1 Sources of City Cacacity Resources: Sources 0 from which City may obtain a City Capacity Resource include, o but are not limited to, the following: 10 8,,1.1.1 Construction of generating facili-l~' ties either solely or in participation with Third Parties; 12 8.1.1.2 Purchase of capacity and associated 13 energy from Third Parties, including, but not limited to, 14 arrangements ?i?.h Third Parties for storage, exchanges, 15 banking,, and other similar arrangements, from which such le capacity and energy is available during designated periods; 17 8.1.1.3 Participation with Edison in new 18 generating units initiated by Edison, in which Edison is a 19 \\ joint participant with Third Parties; provided, that Edison's 20 and'Ci,ty's shares shall be in proportion to the relative si:e 21 of Edison's and City's historical Loads, as determined from 22 an average of the last six annual peak Loads for Edison and 23 City, the latest of which is for the year preceding the year i 24 during which City contractually commits to such participation. 25 Said shares, expressed as percentages, shall be determined to 28 the nearest 0.01 percent. Edison shall, as soon as. i - ~ - ~ - ' ~

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e i 6 E.1.1.1 A City Ca.:acity Resource proposed by' '7 I City shall be of. appropriate size, type, reliability, design l 8l and operating characteristics and'shall be capable of per-j 9li forming in a manner equivalent to Edison capacity Resources: 10 8.1.2.2 The total planned and existing Rated l~' Capabilities of the City Capacity Resources shall not exceed 12 City's estimated Firm Load and reserve obligations in the 13 reasonably foreseeable future, unless the Parties agree that 14 the proposed City Capacity Resource is desirable; 15 8.1.2.3 Integration of such proposed City 16 Capacity Resource shall not require Edison to defer a pro-17 posed capacity Resource listed by Edison in the current 18 Resource Schedule f or which Edison has made substantial finan-19 cial or other commitments toward its construction, unless the 20 Parties otherwise agree; 21 8.1.2.4 Such proposed City Capacity Resource 22 shall be compatible with ( i) Resources planned to serve the 23 Edison Control Area, (ii) the Resource Schedule, and'(iii) j 24 other resource plans periodically subpitted by either Party 25 l to regional agencies and organizations; 8.1.2.5 The Parties shall reach agreement i 1 i

t;;::.n; ::ansn:II.:n Ia:: :: i: re:u :-sf i:: :nt n e;:i-tien cf such crocesed City Cacacity Resource.

I e" fz:e. hen su:h Ci:y Capa:ity Fs:::::e shall f ::: :- :n:..'fsf e n :ne Resource Schedule f:r .:_a.,..ing purp siz: i E.1.2.7 City : hall include ::tcizi:n: in itz l 7 contractual arrangements giving City a right to ::ansfer :c 8 Edison its interest in any proposed City Capacity Resource 9 in the event of City aband:nment, to the extent that this is 10 practical and legally possible. If, under any circumstances, 11 City decides to abandon its involvement in the proposed City 12 Capacity Resource, Edison shall have the right to assume 13 ownership, to the extent above provided, of the City Capacity 14 Resource, and the responsibility for its completion, upon 15 reimbursing City for all costs incurred by City in connection with such City capacity Resource. 17 8.1.2.8 At the time Edison accepts a City 18 Capacity Resource for integration, the Parties shall establish 19 a date prior to which City shall provide Edison with a written s 20 commitment, subject to obtaining necessary authorizations and 21 regulatory approvals, to proceed with participation in, 22 construction of, or acquisition of such City Capacity Re-23 source. After such Resource is accepted for integration, City shall use due diligence in taking all steps necessary 25 to enable City to execute its written commitment to Edison 28 by the established date. The co=mitment date shall be

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? t Of Tir: 0;s : f:. 3.1.3 Er00?furef fOr Int??--ti-" Of Ci:V C 17 2 " i - * ( .l l.. .L.e s c u r c e s : 7 8.1.3.1. City shall inform Edison in writing 8 of its desire to integrate a_ proposed City Capacity Resource j 8 and shall, for the purposes of Section 8.1.2, supply Edison, 10 sufficiently in advance, with data including but not limited 11 toLthe following: (i) data showing that such proposed City' -12 Capacity Resource shall meet all or part of City's Firm Load [ and reserve obligations in the reasonably foreseeable future, 4 (ii) the scheduled Date of Firm operation, (iii) the date by 15 which City must make a definite commitment to proceed with 16 participation,in, construction or acquisition of, such I 17 proposed City Capacity Resource, (iv) data relating to size, - 18 type, reliability, design, and operating characteristics of 19 such proposed City Capacity Resource, and (v) City's pre-20 liminary proposal for transmission arrangements for such 21 proposed City Capacity Resource. 22 8.1.3.2 Edison. stall, upon receipt of the ~ 23 data referred to in Section 8.1.3.1, promptly initiate the 24 preliminary studies necessary to determine whether the pro-25 posed City Capacity Resource meets the qualifications for 28 Integration. amen. : 41-48-"-r-if--2r-Pig e-9p-)* d sqh veg-+ tatyp', ag-q-p-p-rF'ie qp p#Itr--eg p's* -wy--ya wa-t*+T_wregi+ - = ^9W'9fer i* t+ g

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1 I e " ity rece:p cy Ed:se.. of the infor:sti:n en a pr:pese: ~ ' Capacity pesource pur ca.: to See:ier 5.1.3.1. :: 1.,

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on Trans:.issic.. Fa:ili :es as re ui:si ;; II::icn agreement 5! .dison s.na. 1.~.0:rm wity in V ltine a; :: 1:0 l c.1..4.3, L decision regarding acceptance for integration of the pr: posed 6 7 City Capacity Resource. If such proposed City Capacity 8 Resource meets the qualifications for integration, Edison 9-shall use its best efforts to integrate the proposed City 10 Capacity Resource. If Edison concludes that the proposed 11 City Capacity. Resource does not meet the qualifications 12 for integration, Edison shall so inform. City of Edison's 13 opinion and.shall, based upon Edison's preliminary studies, 14 ' fully 1 state in detail the reasons for its conc 1'usion. There-15 after, within 30' days following a request by City, Edison 16 shall make available for examination by City, the plans and 17 specificaticos for similar Edison existing or planned 18 capacity Resources. 19 8.1.3.4 If the proposed City Capacity 1 I 20 Resource is accepted for integration, it shall be included 21 - for planning purposes in the Resource Schedule en the date 22 agreed upon by the Parties pursuant to Section 8.1.2.6. 23 8.1.3.5 City shall provide Edison with 24 its written commitment to proceed with participation in, 25 construction or acquisition of, the proposed City Capacity 26 Resource pursuant to Section 8.1.2.8. l p%w-7,w.-,p7 wg ..%,..,,,,v, y-, ,.,-,e. e ~e

c.A.a.o vnte. va.et.... ..=.., __.; ' disr.'r request install,' fur'nish, 0:erate and sin: sin, =- _ _ City's 501e er.pe. Is, fIrili:f r nd e ci-e-f0r 10:7-* -- Generation Control en each City Capacity.;essucce wh_:.. Id_:..- e desires to operate en Auteratic C-ener a:ien Ten:rel. Edi=er ~~ 6 such facilities and equipment to be in-shall not request 7' stalled on a City Capacity Resource unless Edison would have l 8 l installed such facilities and equipment on said City Capacity l i 9* Resource if Edison'had owned it. Facilities and equipment l 10 g installed by City'for Automatic Generation Control shall be ~ compatible with Edison facilities and equipment for Automatic 12 Generation Control. 13 8.1.3.7 The Parties shall execute applicable 14 i Supplemental Agreements and Transmission Service Agreements. 15 8.2 Reelacement Cacacity: If City acquires Replacement 16 Capacity from Third Parties outside.the Edison Control Area, i 17 such Replacement Capacity shall be integrated, provided, it 18 meets the qualifications set forth in Section 8.2.1. 19 8.2.1 Qualifications for Intecration of Replace ent 20, Cacacitv Accuired From Third Parties: 21 8.2.1.1 Contracts for Replacement Capacity 22. i acquired by City from Third Parties shall be subject to review 23 and approval by Edison. Edison shall not unreasonably with-24 hold such approval. 25 8.2.1.2 Agreement shall be reached suffi-26 ciently in advance by tne Authori:ed Representatives that . i ~ _.c , -. ~.... -. - -.. ~.

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Id:s:n. E E.2.1.3 A:reemen: sh::: h: rer:hef ry thi U Farties as t:.the Point of Interconne::i:n, er 7: int :f I l Attachment, for delivery of such Replacement Capacity. 8.2.1.4 Arrangements for transmission ser-8 vice shall be made by City with Edison or Third Parties, or 8 both, for the transmission of energy associated with the 10 proposed Replacement Capacity, which transmission service 11 shall not be interruptible except for periods of forced 12 outages and for scheduled maintenance; provided, that 13 periods of scheduled maintenance shall be subject to Edison's 14 approval. Edison shall use its best efforts to provide firm 15 transmission service for such Replacement Capacity in accord-16 ance with the applicable provisions of Section 21; provided, 17 that the minimum period of such contract term may, by agree-18 ment of the Parties, be shorter than the minimum period 19 specified in Section 21 and Appendices D and E. 20 8.2.2 Procedures for Intecration of Reelacement 21 Cacacity Accuired From Third Part'ies: 22 8.2.2.1 City shall notify Edison at the 23 earliest possible date of (1) its desire to integrate-such 24 Replacement Capacity, (ii) the source of and all pertinent 25 data pertaining to the proposed Replacement Capacity, in-1 2e I cluding the principles of City's agreement with the Third : 8, G e, r e

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6 mission service for such Replacement Capaciry. 7 8.2.2.3 The Parties shall execute the appli-8 cable Supplemental Agreement and Transmission Service 9 Agreements. 8.3 City Transmission Facilities or Transmission 10 11 Service fro = Third Parties: City may acquire, construct and 12 integrate Transmission Facilities or acquire transmission 13 service from Third Parties, in accordance with the procedures 14 forth in Section 8.3.2; provided, that the proposed ::ity set 15 Transmission Facilities and transmission service arrangements le meet the qualifications set forth in Section 8.3.1. 17 8.3.1 Qualifications for Intecration: 18 8.3.1.1 City shall provide Edison in writing 19 with a preliminary proposal as to transmission arrangements 20 for a proposed City Researce. 21 8.3.1.2 If City constructs new Transmission 22 Facilities jointly with any Third Party, or acquires trans-23 mission service from a Third Party, Edisen shall, if 24 necessary, enter into arrangements with such Third Party sub-25 stantially in accordance with its existing interconnection 26 agreements, unless Edison has previously entered into an 1, i \\

-.. N 4 n t e : c o r.r.c r t. 0 7. c: : :. = v. c '. = - .- s. s - 4 7 5 a g I = c C. - 1 rur:- T f Idisrr i: unable to make such arrance-i l 3 nents vi:: rr:.- Third Prr r .r:rties shall use :neir --e 1 \\ best effe-- -=<* al:erna::.ee arrangements. 6.3.1.'3 - C;;v Iransmission Facilities providing transmissien f or Ci y shall be capable of perf erring 6 7 in a manner equivalent to Edison Transmission Facilities. 8.3.1.4 City shall furnish Edison with '8 9' physical descriptions and characteristics of the-proposed 10 -City Transmission Facilities or Third Party Transmission J Facilities, including, but not limited to nc=inal cperating 11 12 voltage, terminal points, nominal capability and such other 13 information as is then available. e '14 8.3.1.5 Unless otherwise agreed by the 15 Authorized Representatives, the proposed City Transmission 16 Facilities and Third Party Transmission Facilities (both 17 i associated with integration of City Resources) shall be 18 operated continuously in parallel with Edison Transmission 19 Facilities; provided, that a Party shall have the right to 20 separate its-Transmission Facilities from those of the other 21 Party, if: 22 i 8.3.1.5.1 In the judgment of the separating Party, abnormal operating conditions exist which 23 i 24 require such separation to prevent damago to its personnel 25 or unsatisfactory service to its electric customers; or 26 8.3.1.5.2 Certain conditions of high or 30-( tm---gp ga4.neg**n%.,y.s. w y e p + g; w ,g ,.,,.--g-wg g,,.gywy-.,g,,,,,,,%,,,,,y ,,,,,,,+,,.4-n wwwWWw,wete-we v>e'e-v*aw-v

~, t _;.~;:ecuency c:.vsa: age ex;s ,'onic. cens.:.wns n&ve n e s t. l 1 -e"'e =' ?-f cc:-dinated 54 the Parties a::ine through the l I 2 ... ; ; ; r i : : d.? c p r e r e n t : - i ~ - - - ^ - i .~.. 5.3 The dispa:cners of Edisen and l e 5 -. i l. 1 City'Or said Third Parties a::ee to secarate; or. 6 E.1.1.5.4 The dispatchers of Edison and 7 City or said-Third Parties agree that such continued operation 8 is temporarily detrimental to th'e electric system operations 8 of one or both Parties and such separation will not result in 10 unsatisfactory service to the electric customers of either ~ 1 Party. 12-8.3.1.6 Each Party shall have the right to 13 install such devices and equipment as it dyems necessary to 14 automatically separate its Transmission Facilities from that 15 .of the other Party or a Third Party under the conditions i 16 described in Sections 8.3.1.5.1 and 8.3.1.5.2. Each Party 17 shall keep the other Party advised of the settings and 18 status of such devices and equipment. . 19 8.3.1.7 Each Party shall have the right i \\ 20 to schedule and take any of its Transmission Facilities out 21 of service for necessary inspection, maintenance, repair, 22 replacement and additional construction; provided, that 23 neither Party shall, by taking any of such Transmission 24 Facilities out of service, thereby cause separation of 25 the Transmission Facilities of Edison and City or signifi-j 26 cantly decrease the capability to transmit the electrical 6 31-I l y -*ey? 9 kwa- =- >e5*-

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...4: ~ 4 F a r --, :essenable advance noti:t (which shall n:: he 'ess tha-l 0_. working dzys pri:: to the'c runcene..: thereof), cf any j tw: scheduled cutage cf such Transmissicn facilities and the 6' 7 estimated duration thereof, and shall cooperate to schedule 8 i h p ,such outages so as to minimize interference w th t e I 8 operations of the other Party. \\ 10 8 3.1.8 Edison shall own, furnish,-install, f operate and maintain, at City's sole expense, all equipment ~l 12 located at Edison's switchyards or substations, which is l 13 required to terminate the proposed City Transmission Facili-e l 14 ties and Third Party Transmission Facilities. i 15 8.3.1.9 City and Third Parties shall le provide sufficient space'at a Point of Interconnection, a 17 or the Point of Delivery, as applicable, Point of Attachment, la for the installation of a reactive power supply and associated 19 cerminal equipment sufficient to compensate to a power factor 20 consisten* with Edison's standard practices as to bus voltage. 21 8.3.1.10 City and Third Parties shall, at I 22 l their sole expense, furnish, install, operate, maintain, 23 replace or rearrange, any other equipment or facilities which 24 are required to integrate and control the proposed City Trans-25 mission Facilities and Third Party Transmission Facilities and 26 all related equipment, and shall provide facilities desiened : s

d .p:.v.c. a_=q-s:=.......... c.. : = c e.... -..11..... I. 1 v- 's systs.r and facilities. ~ c.2.1 T snsmissier cars ::::ies shall ce in acccrdar.c+ v::.. good elec:r;:. :.. i :; s r.g i.. e c t - estay'.ished ing and operating prac::ces using s:abill:y s:.d:e c f ..s ~ 6 Parties, generator and li..s impedances, and giring considera-7 tion to transients, series' compensation, parallel circuits, 8 conductor material sice and other parameters. 9 8.3.1.12 If the proposed City Transmission 10 Facilities are to be integrated, City shall submit the ap-11 plicable information as it beccmes available. 12 8.3.2 Procedures for Intecration: 13 8.3.2.1 The Parties shall meet within e . 14 60 days after the written data are furnished to Edison 15 pursuant to Sections 2.3.1.1 and 8.3.1.4 and shall endeavor 16 to reach a preliminary understanding as to the new Trans-17 mission Facilities and transmission arrangements, whether 18 provided by Edison, City or Third Parties, which are 19 required to integrate the proposed City Resource. 20 8.3.2.2 Upon reaching agreement as to 21 the transmission service to be provided by Edison, the Parties 22 shall execute applicable Transmission Service Agreements. 23 8.3.2.3 The Parties shall execute a 24 Supplemental Agreement for any City Transmission Facilities 25 City desires to have integrated. 26 8.4 Non-Firm Enerev: City may acquire and integrate 33-i

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i.4.~-. revided. : hat the pr ep:sef S:n-Tir-Inst:- -ss r ~ 4 ne q;a..f;:s icns ra: f:rth in 3:rti:- '. '. '. E 5.4.1 0:slifi:Itiens frr : re:- ir-ef 'er-7:-- i 6 g r,, r ey : 7 8.4.1.1 If Non-Firm Energy is to be acquired from a Third Party, City shall execute an appropriate agreement 8 9 with such Third Party. Such agreement shall contain scheduling 10 limitations and other procedures necessary to comply with 11 Section 8.4.1.4. 12 8.4.1.2 City shall arrange as necessary with 13 Edison, Third Parties, or both, for the transmission of such 14 Non-Tirm Energy in accordance with Section 18. 15 8.4.1.3 The Parties and Third Parties shall agree upon a Point of Interconnection or Point of Attachment, le 17 or both. 8.4.1.4 Edison's dispatcher shall be able 18 19 to schedule and dispatch such Non-Firm Energy in accordance 20 with good electric utility practice as delivered at the 21 Point of Interconnection or Point of Attachment. 22 8.4.1.5 Edison snail have an interconnec-23 tion or integration agreement with the Third Party which 24 schedules the Non-Firm Energy to a Point of Intercennection 25 or to a Point of Attachment. If there is no such agreement, 26 Edison shall use its best efforts to obtain such agreement. 34-i meo y m--.- .y.e.ep.- 9-,. .,.-g 9 f--.y,g9-y,. gap. -,.- p 9 7 p- ,.-w,

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~ ~' 6.4.2.1.1 A C0py c* O r. t agreims..0 j I 7 between City and the Third Party. Such agreemer.t shall set 8 forth (i) the amount of Non-Firm Energy for which City has 9 contracted, (ii)-the maximum rate of delivery, (iii) pricing 10 arrangements, (iv) term of the agreement, and (v) any other 11 data necessary to allow Edison to determine whether or not 12 said Non-Firm Energy meets the cualifications for integra-I 13 tion and that the agreement contains sufficient information 14 for Edison to schedule such Non-Firm Energy. 15 8.4.2.1.2 All information as to 16 City's proposed transmission arrangements. 17 8.4.2.2 Edison shall review City's proposal 18 to determine if the scheduling of Non-Firm Energy into the 19 Edison Control Area is feasible and shall, within the 20 notice period, notify City if City's proposed Non-Firm Energy 21 is accepted for integration. 22 8.4.2.3 If such Non-Firm Energy is accepted 23 for integration, the Parties shall execute the applicable 24 Supplemental Agreement and transmission service agreements. 25 1 8.5 Recuest for Intecration: i l 26 City may request integration of Replacement Capacity, i ,y., m-, .-.e-, .r .m

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... ~... ~......, Tity ~:~ r:~~ :~' :~2~~~' ~~~~~~'~~'~~ I O arrangements in advance of cpera:Ing need. l 3-a..=:.....a u :.. -. S.; 'ne 7.htef Caratility.:f 1 Ci y

p::i y J. ::::re, i

i "l in -he. care Of a generating enit, shall be determinsf ty_ l a 6 'I start-up, performance and operating tests of the types nor-I mally used by Edison to establish the capability of its 8 generating units or by agreement of the Parties. Determina-9 tion of the Rated Capability'of a. City Capacity Resource 10 shall be established during the start-up period prior to its 11 Date of Firm Operation. 12

9. 2 - A City Capacity Resource shall be considered as a 13 source of Rated Capability on the Date of Firm Operation.

14 If, after.said date, an operating characteristic of such t 15 City Capacity Resource or its related Transmission Facilities i 16 is permanently changed as a result of changed design criteria, 17 new regulatory. restrictions (or relief therefrom), revised 18 transmission stability or other transmission criteria, 19 new equipment additions, operating experience.or other 20 factors, the Rated Capability of such City Capacity Resource 21 shall be changed. City shall establish the changed Rated 22 Capability of City Capacity Resources in which Edison 23 is'not involved as an owner by having performed (by City 24 or Third Parties), at no expense to Edison, the operating 25 tests then being used by Edison to establish the rated 26 capability of its sources of capacity and energy, provided, 6 i ~--

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.=4.s if Edison had :...e:

.. C;;y Capacity 5

Rez:ur:e. Su:h :'..1-ed F.a t ed CIp: bili ; -..51; be:cre 1 6 b i effectiv. on e d3 : t-b- ; ;tti;;;;,cs, : d 3::=ec up:n, 1 7' by the Authorized Representatives. 8 9.3.Either Party may, from time to time, request a '9 demonstration of the ability of a City Capacity Resource to 10 produce its previously established Rated Capability. Such 11 demonstration sh'all be similar to that used to determine its 12 previously established Rated Capability and shall be per-13-formed by City at the requesting Party's sole expense. The 14 following shall apply in the event such demonstration indi-15 cates a Rated Capacility different than that previously 16 es tablished : 17 9.3.1 If such demonstration by City indicates a 18 Rated Capability lower than previously established, City, 19 at its expense, may take appropriate corrective measures 20 .to return that City Capacity Resource to its former estab-21 lished Rated Capability within a reasonable period, and, in such cases, shall subsequently verify, at i ts expense, the 23 Rated Capability by a si=ilar demonstration if Edison would have performed such a demonstration had Edison owned 25 said Resource. Subject to Section 9.4, if a City Capacity 26 Resource is not returned to its previously established 9 : .--aw..um a seue -,y, ,e-,+,..,,g ,--,e-v,- .n... ,,,e y s s n, ,-e-,

=~ad c=-= Fili:.. a new Rated Ca:a::".::. f:: I ;::. :::

I .:;::::;.tez: r:e shall be established, Inf r'2'1 Per--= e u elie::i:e on a d a:e agr eed upon :y tr.e c.:::...... = -........ ~-

"er.

9.3.2

f such demenstratic.. by City indi:stes a a

f Fa:ed Capability higher than previously estaclisned, a new 7 Rated Capability f or such City Capacity Resource shall be established, and shall become effective on a date agreed 8 Q upon by the Authorized Representatives. ~ 10 9.4 If City desires or is required by regulatory l~' authority or other reasons beyond its control to permanently 12 reduce the Rated Capability of a City Capacity Resource or 13 permanently remove from service a City Capacity Resource, 14 City Transmission Facility or City Communication Equipment, 15 it may do so subject to the following: 16 9.4.1 If City is required to permanently reduce 17 the Rated Capability of a City Capacity Resource or perman-18 ently remove fr,m service a City Capacity Resource: o 19 9.4.1.1 City shall provide Edison with as 20 much advance notice as possible of such reduction in or 21 l removal of a City Capacity Resource: 22 9.4.1.2 City's Rated Capability shall be 23 reduced by an amount equal to the required permanent reduc-24 tion in Rated Capability or the Rated Capability of the City 25 Capacity Resource required to be permanently removed from 26 service on the date of such reduction or removal from s - -. ~.

1 l l' serric+. Exce:: as crevided in Section 9.4.1.2, 1.: s s p.::hsre, u r. d e r * * * " " ' ' ' '

e TJ f r a - a ' '

0

..e r L-

1.. i

.. ate he.. 1,::.;;a:1e :: :::y, additiona" capa:i:; 3, 4 arterie ef e +r y equ1' to the resulting redu :ler ir 23,:2-r 5 city c,31:, i 9.4.1.3 If reduction in, or re=cval from 6l I 7 service of a City Capacity Resource would cause Edison to 8 experience system reliability problems, City shall be 9 obligated to acquire Replacement Capacity and energy from 10 Third Parties outside of the Edison Control Area, to.the [ l' extent and for the period that Edison would have acquired 12 replacement capacity had the system reliability problem 13 been due to a reduction in, or unavailability of, rated 14 capability from an Edison capacity Resource. 15 9.4.2 If City desires to permanently reduce the 16 Bated Capability of any City Capacity Resource or perman-17 ently remove from service any City Capacity Resource: 18 9.4.2.1 City shall provide Edison with 19 as much advance notice as possible of such reduction in 20 or removal of a City Capacity Resource: 21 9.4.2.2 City shall first offer to sell or assign that amount of capacity which City desires to 23 permanently reduce or remove from service to Edison; 24 provided, that contractual arrangements between City and 25 Third Parties so permit; 26 9.4.2.3 If Edison is unable or unwilling 39-i e = T d- e f""*" -t--+ 9'+- '*-'r-9 -F6(T

- w-r-
- '**Mn--

e e-*e-+' 'e ' " " * - * * ' ' - ' - - ' ~ + - -

e .. e e e...... t ~ .=.....=..~.; e s e _. y.. ; I 'r. the Parties sr.all sees to acree c.- :ne per:cd durin-i - -- City shmi: --- ' ue te epera:e

..e ;i:y ~apa:ity

-arcurce, and ;d.:.a:_e :: agr e s, ;.:. :hal' 1 maintai.. I suen City. Capacity F.es::::e a: its e: :bli ned F.ated Capa-I 6; bility, or (ii) acqu ir e ?.epla:eme n: Capa:i 3 and energy from Third Parties outside of the Edison Control Area, to -t 8 the extent and for the period that Edison would have main-9 i tained rated capability or acquired replacement capacity. 10 9.4.3 If City is required to permanently remove 11 from service or reduce the rating of a City Transmission 12, Facility, City shall use its best efforts to acquire Trans-13 f mission Facilities, or transmission service from Edison or Third Parties, as may be required to enable Edison to 15 continue to provide reliable service for the Edison control i 10 l Area, and in such case, City shall reimburse Edison for 17 all costs incurred as a result of the permanent removal i 13 i f rom service or reduction in rating of a City Transmission 19 Facility; provided, such costs would have been incur red by 20 I Edison to provide reliable service for the Edison Control v f Area due to the removal from service of, or reduction in, ~~ ao j rating of an equivalent Edison Transmission Facility. 23 j The Parties shall seek to agree upon alternate methods 24 ' for providing reliable service for the Edison Control 25 Area. 25 9.4.4 If City is required to permanently remove. i \\ 9e-. w. -p.s -...-.,-e,_%a,.p s,_,- -,e,,---w--, -.,,u- -e..r -. w --.e-

e l ~

:- :...... In. :::y rmuni:a : n Icuir =--

-',~ -' '.' ase its best efforts to eb :1. - 11tt:.. e e::.-d i for 3 ,, _,,, ;, 3 3 ,.g

,;, _. 33 f.,

..,3 ,.,33;;in-4 and dis, a :: n; cf City *nte;:c:sf .r es::::es,

ni:::ing 6

of equi,msn, and any c:her function requiring ru:r ::mmuni-6l ,, g i e,. 7 77 i;,.,,. :. :. City snall reimburse Efisen for all 7 costs incurred as a result of such removal from service of 8 City Communication Equipment; provided, such costs would 8 have been incurred by Edison had the removal from service 10 been of equivalent Edison Communication Equipment. I 11 10. SCHEDULING AND DISPATCHING: 12 10.1 General: Because it is not practically, techni- {' 13 j\\ cally or functionally feasible for City to schedule and i i 14 dispatch City's Resources and City Transmission Facilities as a part of the Edison Control Area pursuant to this Agree-16 ment,. Edison, acting as City agent, shall provide scheduling 17 and dispatching services for such City Resources and City 18 Transmission Facilities. City shall make such City Resources j and City Transmission Facilities available to Edison for 20 scheduling and dispatching as necessary for efficient 21 l Integrated Operations. 22 10.2 Scheduline and Discatchine services: Edison, as 23 City's agent, shall provide scheduling and dispatching ser-vices to City as provided in section 10.1 for the following: 25 10.2.1 Integrated Resources and City Transmission 28 Facilities which are integrated pursuant to Integration i G i r s i i

t i ngreements. A r. p r c v a s., s.... actvives.....;, _...... _..... l i the sa e -anner as if Edison owned sue. ~ntegrated 1 e-3- nd 1-Tra.r-fee.e. Facil'ities. 10.2.2 Suoje:: :c :he linica:ic..

f d..s Agres-e m a n t,. and== diracted oy ~;:y. fcr Ci y Rescar a

. :ated inside or outside the Ediz:.. Centrol Area, the e2ertrical e, 7 output of which is to be delivered to Third Parties within the Edison Control Area or to other control areas and ) 8 9 where such delivery necessarily requires, for technical, l 1 10 functional or econc=ic reasons, transmission service from 1 L 11 Edison and the use of the Edison Control Area. 12 10.3 Standard of Service: Edison shall perform such 13 scheduling and dispatching services in accordance with good l electric utility practice. City shall arrange to have any 15 scheduling and dispatching instructions executed in accordance l 16 with good electric utility practice. 17 10.4 Limitations on Coeratine Schedules: City shall 18 keep the Edison dispatcher currently informed of any operating or scheduling limitation on any City Resource or City Trans-20 mission Facility which is scheduled and dispatched by Edison. 21 10.5 Emercenev Conditions: 22 10.5.1 Except under emergency conditions, as L 23 determined by the Edison dispatcher, no City Resource or City 24 Transmission Facility which is scheduled and dispatched by 25 Edison shall be scheduled and dispatched in excess of Rated 26 Capabilities or line current ratings or such Rated i

i l i .a... ....=7....a... .....=a I l 2 r err-ine er erneduling limitatiens. In.:he event-cf l c.tr : r; r.fi-i -s', Ediren sha'2 advise'~ity-in advanr: j 3 i k 4' vne.. rpers::en of City Eescurces :: li ; Transmis:it.- . I

I Facilities in excess of Ka ed Ca a_.'

-les c: 'ine currin. I ratines is an:icipated,-and the anti:1;ated duration cf such 6 H 7 operation; provided, that if an emergency condition arises 8' where such advance advice is not practicable, Edison shall advise City as soon as practicable after such operation has I 9 L zo occurred or commenced. 11 10.5.2 Except-under emergency conditions, as L '1 determined by the Edison dispatcher, Edison shall not be l recuired to schedule and dispatch its Resources or Trans- [ 14 mission Facilities in excess of ratings or limitations 15 established by the Edison dispatcher therefor. 16 Oceration of Transmission Facilities: Neither 10.6 17 Party shall be obligated to operate its Transmission Facili-d i 18 ties in excess of line current ratings, outsi6e voltage 1 -1 19 limits, or, under emergency conditions, in excess of the 20 emergency rating or limits, all as established by the 21: owning Party. Such ratings and limits shall be exchanged 22 by the Authorized Representatives. 23 1 10.7 Pav=ent for Scheduline ar.d Discatchine Services: 24 For the services provided by Edison under this Section 10, 25 i City shall pay Edison, each month, a charge for each City l' 26 Resource and City Transmission Facility scheduled and I g ~

"ea das:n::hei =v Ei;s;n. 5;::. :nar:c

nal. Le

= c:.1:nsi I 2l' g==3;;y ty ;3 y,=.37737.g 7,;7,3ynt,t$.,,, gr 377,77,ne, j i I . v; n :he.:::: cia:c: :s

: :.- r.: r n a. : -.

i and dispa: chin: c ar c; f : any 01:..:.cz::::s :: City 5! - - -=#

he Transmission Facil::y not ca-=--

ee a- --a .f i . ' annual. determina: en snall =e esta:1:sned :y ::.e .,u nori:ei j I 7 Representatives as of the time such scheduling and dis-8 If the Parties cannot agree upon any . patching occurs. charge, Edison may unilaterally file with the Com=issi:n, 9 lo 'under Section 205 of the Act, a change in such charge to

be effective during the ensuing year.

12 10.8 Modification of Exhibit B: The procedures set 13 forth in Exhibit B (including Table 1) shall be reviewed 14 annually by the Authorized Representatives and, if necessary, 15 modified so that there will be consistency with procedures le followed by Edison in developing scheduling and dispatching 17 charges'under agreements filed with the Commission. 18 11. OPERATION AND MAINTENANCE: 19 11.1 Reseensibility: Each Party shall be responsible 20 for the operation and maintenance work requirei on its Re-21 sources, Transmission Facilities, and Communication Equipment, 22 and for its facilities and equipment at the Point of Delivery, 23 a Point of Attachment, and a Point of Intercennection. 24 11.2 Schedulino: City shall coordinate with Edison 25 the schedules for maintenance and refueling work, and work 26 related to construction of capital additions, betterments b g e6-r1 . +,,. - - w- .g*~ -c. m ,m. m ,r- ,.,m. ,,.---u

, p l -.. i..,: 1... ;.. r. +..,.. Th.T E .ission Facili lessand C1:y C :munication E: :pren:, an: ; r i. j ~ 1 City facilities and equip en: a the.:ci..: ef 24*;Ver/,. .:cin cf A::achmen ar.d a 7:1..i :f n:sr::..ns::i:n II.f:~.2: : - O 1

Ifi;:,

t 1.1.2.1 City'shall.:rspare and submi: e 6 on or before November.1 of ea:h. year, a -r5.edale of su:. 7 maintenance and refueling' work,.and sucu esrk related to 8 . construction of capita 1' additions, betterments and replacements. Such schedule shall be prepared =in accordance 9 10 with good electric. utility practice. Such schedule shall 11 indicate, for the three calendar years following said.evember N 12 1, (i) the work to-be performed, (ii) the estinated dates when 13 such work shall commence and be completed, and (iii) the esti-14 mated date when the affected unit, equipment er facility shall 15 be returned to service. Edison shall use its best effor:s to 16 coordinate the City schedule with that of Edison in accordance 17-with Section 6.1.11 for the mutual benefit of both Parties. 18 11.2.2 Each Party shall be responsible for per-19 forming all maintenance and refueling work on its Resources, 20 Transmission Facilities and Communication Equipment, c; 0:ner 2~' facilities or equipment, in accordance with the lates: 22 approved schedule. Changes in such schedule shall be re-23 viewed by the Authorized Representatives. 24 11.3 scheduled Maintenance Account: A scheduled 25 Maintenance Account shall be established by Edison for each i 26 City Capacity Resource on January 1 of each year for that i e N." w, +,en,me 9-^e.e,-r we. er7r.P e-mer-e ur =y e a-7-W-v-*w -eirt-*+v-vr-w-w- - w's t twe gr-3 W e w OW v T' W % r-'w'f-rWPf"W' h.'T_$^T++P-4EP'-e'te-+Tw-Wyg664-*mT'W'*F**T-th*"6 d *tWN+ 4 $re"*O+F-W'f%W 47

- "=$T'*T w--Pr* 99'"-FrP""*9"W*TT M 8'

1 Suen scheduled Maintenance Accoun: shal; :s :- :er r e==r. ..__.:::-fars anf, at the ': : g ir.nin: O f r"; f:::, : h :1 '. C .i sq. _ r.e resi;; cf mul ip' fing tr.e.:.a:si ;s.: ::11:3,rsi;;e: 4 rr riprcpriate transmissic: lesses :: :..e F:in Of Cel:vsry, i 5 Of esch. City Capacity Rescurce by the num:er cf days such 6 City Capacity Rescurce is expected te be cut of service i 7 during that year for scheduled maintenance and refueling 8 work..Such number of days for any year shall be obtained 9 from the schedule submitted by City to Edison on or before 1.0 the November 1 ir.:ediately preceding that year, as such 11 schedule is adjusted or modified prior to January 1 of that 12 year for the mutual benefit of both Parties. Any kilowatt-13 days remaining in the Scheduled Maintenance Account at the 14 end of any year shall be of no value and shall not be 15 carried forward to any following year. 16 11.4 Removal from Service: Except in emergencies as 17 determined by City, City shall not take any City Capacity 18 Resource, or any of its City Transmission Facilities, 19 Communication Equipment, or other City facilities or equip-20 ment at the Point of Delivery, a Point of Attachment or a 21 Point of Interconnection, out of service for any reason ~ 22 without prior approval of the.Cdison dispatcher. If, because 23 of such an emergency, prior approval cannot be obtained l 24 in time, City may remove such City Capacity Resource, i 25 City Transmission Facility, City Communication Eculpment 26 or other City facilities or equipment from service and t Kn' s

t 9 4 ', - - ' ', - ""e Edice~ A'c-= -"*r

t.ere:i.

^ ' l ....m..... C 1.1 General: Each party shall, On and'af e:

..e Oa:e

.rr. , E r::i:.. :f the firs t City Iara:ity 7.ere ::e and un. j ) ? -he :s::ina i:.- Of this Agreement, centri ute its pr:perti:na e l snare' ef the installed reserves required

c. pro cide relia':le E'

7 electric service. to the combined Firm Loads of the Parties. 12.2 Citv Contribution to Installed Reserves: City 8 8 contribution to installed reserves shall be' deemed to be a percentage of the cum of.the Rated Capabilities (expressed k 10' y 11 to the nearest kilowatt) of the City Capacity Resources. - 12 The. percentage for any year shall be determined from data 13 contained.in the Resource Schedule as reviewed pursuant to .14 Section 7.6 which is effective on January 1 of that year and 15 shall be equal to the arithmetic average of the five annual 16 reserve margins, before planned scheduled maintenance, 17 (expressed as a percent of the annual peak of the combined 18 Firm Loads of the Parties) planned for the next five con-19 secutive years, the first year of which is the year in whie.h 20 said percentage is to apply. Such average shall be determined 21 to the nearest 0.01 percent. 22 13. FACILITIES AND EQUIPMENT TO BE PROVIDEC AT THE POINT OF ? 23 DELIVERY, A POINT OF ATTACHMENT OR A POINT OF INTERCONNECTION: 24 Edison shall own, furnish, install, operate and 13.1 25 maintain all Transmission Facilities and Communication 26 Equipment at the Point of Delivery, a Point of Attachment or i i

ws-g ri y

.---e',,r-M-s, m,-p. w se ,,ra.-%g % e,- -,,,g- -.,, - -eme-age-m-,,-,e,-e-,g,.er=='te-see=4 u-*=ae se - w W-' ge n w ' -- - n r,-%-awe-n w w.=w' s e 7 "'-r""

'.1_ 1 -<: --or-e--ar-ien wnich are assceistef w::r :ne I l II:s:r :: Insa:ss:: lines a saif points. Su:P Trans-irrf-- m" snd

rruni:::i:n I;;ignen: shal; in:;ude, II:i;;; s 4

'::.li-itef :: r itching, tuswcrk anf metering.

u-.: :

12.2 The design anf c nstruction of-City Cc munica-x i tien Equip:ent and City Trans:Ission' Facilities at the Pcin: 6 7 of Delivery, a Point of Attachment or a Point of Interconnec- ~ 8 tion between Edison and City.shall be subject to the written approval of Edison. So long as City has made such design 9 0 and performed such construction in accordance with. Edison 11' standards, Edison.shall not withhold such approval. 12 Each Party shall operate its. facilities so that 13.3, 13' variations in the. flow of reactive power, and the resulting 14 fluescations in voltage levels, shall not adversely affect 15 Each the performance of the facilities of the-other Party. is Party shall operate its facilities in accordance with good i 17 electric utility practice in order to minimize the reactive 18 power demand placed on the other Party's facilities. 19 14. LOAD CURTAILMENT AND LIMITATIONS ON MEW LOADS: 20 If, during the term of this Agreement, it.becomes necessary 21 to curtail existing Firm Loads, or limit additions ;o 22 Firm Loads of City and Edison because of the lack of 23 availability of Resources, Transmission Facilities or, fuel 1 24 i supplies, which results in insufficient capacity or energy 25.1. l to provide adequate service to the combined Firm Loads of the Parties, the Parties shall engage jointly in such . i 4 g-g-yw-y-y f -vc g-, ,-.c .vr-- ,,yg,--A+wem-w-=, --p,,e,e..s-,rwr--,-e-wese,-go,.,-,-wrveg.,,-,,wwe,--v,y,yc..en,- .-n,.- .wcw,- .wwv,,-w.-%,wme-*v-ei.we y--yw.,-+-.e+,$.wrr

r ..:::. t.:.a-i.:.: ::::.: ;- t ::: ra cas:5. m

n :nt excepti'on of short. duration Lead shedding due to emergencies, i

. : g g. g... 4 3 333

tas: a:ls eff:::a

.3.=

asen n.ad s b;. sa:h 7ar:y : .ake f :: 26 Of all "alif::nic ani afjacent 6-i:..a'. power resources. n_,.. _.s..._: i. e c... I Edison shall provide Partial 15.1 Sale and Purer.ase: 7 Requirements Service to City. Under such service, and I ' subject to the provisions. of Section 14, Edison shall make 9) available and deliver capacity and energy to City at the Point of Delivery, under the Partial Requirements Rate, as y f 11ows: 2 15.1.1 The amount of partial requirements l.a capacity.to be purchased in any billing period under the 14 billing demand portion of the Partial Requirements Rate 15 shall equal (i) the maximum peak demand of City's Load la l during the billing period minus (ii) the. Capacity Credit. 17 1 1.afineffectatthetimesuchmaximumpeakdemandoccurs,but shall not be-less than the minimum billing demand, if any, 19 as set forth in the Partial Requirements. Rate applicable 20 i 21 ' to City. When the Capacity Credit is increased due to the addition of a City Capacity Resource or an increase in the 22 ; i 23 l Rated Capability of a C ty Capacity Resource, minimum billing demands, if any, shall be calculated as though' the 2,, increased Capacity Credit had been ef fective throughout the 25 period used in the calculation of the minimum billing 26 (

.i . i. ;..: 1~.1.0 The : r nt rf partial require ents energy l t \\ j e ; ;r :..: : : : :. any :._ _... g.... t - Feguireta.:s ?.a e. shall equal.hs ::: f.he.:ur'y energy l i 5 rec.uir er e n t s f0r that' illine cer;;i. Esc.- sacs neuri.v 8 s requirement snall. ce de ter: ined as f 0llows : ' ' ~ ' ' " - ' ' V - " ' # " " ' #4 i 7

,3

_.C r u w & s. & L w, W 4 "._~; p 8 Where 9 'A = The amount of partial requirements energy to be lo purchased from Edison by City during that hour (not less than 11 zero); 12 B = The total energy requirement of the City's Lead - t 13 during that hour; and 14 C = The greater of (i) the amount of energy scheduled 15 and dispatched (adjusted.for transmission losses to the 16 Point of Delivery) during that hour by Edison from Integrated 17 nesources, or (ii) the amount of energy capability associated l%-w - ' zy.r ;l w) 18 for that hour with the then-ef fective Capacity redit. 19 15.1.3 Such capacity and energy shall be sold by l 20 Edison to City, and City shall pay for such capacity and l 21 energy, at the rates and under the terms and conditions of 22 the then applicable Partial Requirements Rate. f 23 15.1.4.Except as provided in Section 15.1.5, and f 24 notwithstanding any other provision of this Agreement, Edison 25 shall have the right in furnishing Partial Requirements 26 Service under the Partial. Requirements Rate to nilaterally i I 8 f 1

..s

.::: :nc

r.:::.: n

nsn;+ tr ::::2, rn:: e:,

classifica:i'on, or service, or any rule, regulation, or j e I .a 4 perruan:. :: the ceme:ss::.'s rules 2n; ::.....:na 5

.'.1;1:sf thercur. t ; previfef, th;; :.. ::.:n;s sh-11 tc 8

64. Ch

15<

6: :::: i2 in Wi~;<

Y nME : i;0 a:rEE En: to do so is expressly provided for in an 7 '. unless such right 8 Integration Agreement. 9-15.1.5 When in. Edison's sole judgment retention 10 of City' in the single customer group Resale Service - Large 11 (which now comprises all of Ediron's large all-requirements 12 l resa?e-customers and partial requirements resale customers) 13 for purchases under Sections 15.1.1 and 15.1.2 adversely 14 affects any other customer in that group, Edison may file 15 changes in the Partia1' Requirements Rate with the Commission is under Section 205(d) of the Act, which changes result in a 17 rate which is different in design or' level, or both design 18 and level, from the resale rate applicable to Edison's large 19 all-requirements resale customers or other partial 20 requirements resals customerst provided, that such change in 21 rates shall not become effective until (i) it has been 22 determined by final order of the Commission, no longer 23 subject to j udicial review, to be just and reasonable, or 24 (ii) 2 years after the Tender Date, whichever occurs first. 25-15.1.5.1 In case of such a change in rates 26 which has become effective prior to final order of the _ ~ s -,~t-v:*-* y' y-v=-*C-( e v *-** - -v- -v-1**r-' - ' ' = - er --a pt e vh'te+^ rT e rr-7*-- -i-'w~ ar*'-**=r== - * ' * - * * - - - - - - - - * ' - ' - " * ' ' - - " ~ * - - - - - - - - - - - - - - - - - - - - " "

1 1 .~ ~.~ i.

S I ;

T., n: .~n's. 2. ~ ' 0 0 ~..

d;

li.

Til.. aT..."

~
! '.' 2
r i~ Tr inrre*?ed 79ta or Char 3e, Edison shall upon j

~ 2

'.~ ; t: ;; '...:.........

a'.'.. ::;n s re:e tef :y'rez :r :f su r in:: esse and,. :. ; : 4

r. ; l:nce: zu:js:: ::

.f.:i-1 5 final order of :ne Cermission,

r. 22; n refund i:1 Edison shall u:.cn c:l=.

... = 6

review, I

7j interest to City such portion of su:h increased rates er I ~~ -8l charges as by the Commission's final order shall be found not e 9 just and reasonable. 15.1.5.2 After Edison has filed a change in 10 11 rate pursuant to Section 15.1.5, and while such filing of I such change in rate is pending and has not become effective 12 Edison 13 or if such change has been denied by the Commission, 14 shall have the right to file with the Commission under 15 Section 205(d) of the Act changes in the then-ef fective 16 Partial Requirements Rate which do not result in a rate 17 which is different in design or level, or both design and 18 level, from the resale rate applicable to Edison's large all-requirements resale customers or other Partial 19 20 Beguirements resale customers, and such changes in rate 21 shall become effective pu.euant to Section 205(e) of the 22 Act, no twi thstanding the pendency of Edison's filing of I 23 changes in rates pursuant to this Section 15.1.5. ~ 24 15.1.5.3 If, while a change in rates 25 tendered for filing pursuant to Section 15.1.5 is still Edison is unable to make ef fective a filing of a 26 pe nd ing, e e i

o. \\ ni'- a. } . t :.... : :,.. 1

.1 :. s s.:.:.. :.. :.- s i i + : =. =

.a.= l 2' ;l pursuant to Section 15.1.5.2, Edisen snail net be precluded ~ l c 4 w...., s. l 4 fi~ef.:ursuin: ' : s a.I' 5 e :- i:n' 15. ;. I ;......: uf t:-ive j

- :- ' c::t e n t Of

's pursta.: :: 5e::i: - i(e) cf,:ne'A:, l r: r-f :- f --f r'i.--- :: crhi-~s r t-1s c;- - :t fis:

f.?

g f 7 1have achieved if i: had been;able :: make effective the 8 change tendered for filing pursuant to Section 15.1.5.2. ~ 9 15.1.5.4 If a change in rate filed by Edison 10 pursuant to'Section 15.1.5 has become effective, but has not i ? 11 been-determined by' final order of the Commission,.no longer 12. subject to' judicial review, to be just and reasonable, Edison 13 shall~have the right to. file changes in such newly, '14 effective' PartialRecuirements Rate pursuant to Section 15 205(d) of'the Act;-provided, however, that changes in the 16 rate design shall not become ef fective until (1) they have 17 been determined by final order of the C:mmission, no longer 5 18 subject to judicial review to be just and reasonable, or 19 (ii) 2 years af ter the Tender Date for filing such changes 20 pursuant to this Section 15.1.5.4, whichever occurs first. 21 15.1.6 After Edison's filing cf a change in rate S 22 pursuant to Section 15.1.5 has been determined by final order 23 of the Commissien, no longer subject to judicial review, to be 24 just and reasonable, Edison 'may unilaterally file under 25 Section 205(d) of the Act changes in the new Partial l 26 i Recuirements Rate applicable to City. However, changes in \\' I s

I

~ ~~

~.. G ~ d a l', :ne rate cf ns nen-sffe:::vs Part:al.'s:;; scen ha:e i t I

" appli: abis t: Ci t*-

T's2: .00 b:r-e effr-ti"- '; til th l 1 havs zeer. s er:_..=: :: ; _na_ :::s: :: :.. s : :. 2 2. _ :., n: i 4 110ncer sub er: :: 'udicial revis', :: : s 'us; anf rear: natis, 5 or-(11) 2 years af ter ths.Cends: Cats f: filing such i 6 g cnanges, whicnever occurs 1rst. I a 7 15.1.6.1 In case of such a. change in rats ~ 8 filed pursuant to Section 15.1.6 which has become effective - 9-prior to final order of the Commission, no longer suojec: :o - i 10 judicial. review, which results in an increased rate or 11 charge, Edison shall upon order of the Commission keep 12 accurate account in detail of all amounts received by reason 13 of such increase and, upon final order of the Commission, no 14 longer subject to judicial review, Edison shall refund, 15 with interest, to City such portion of such increased rates 16 or charges as by the Commission's final order shall be 1 17 found not just and reasonable. 18 15.1.6.2 After Edison has filed a change in 19 the then-effective Partial Requirements Rate applica 1e to 20 City pursuant to this Section 15.1.6, and while such filing 21 is pending and has not become effective or if such change 22 has been denied by the Ccmmission, Edison shall have the 23 right to file with the Co= mission under Section 205(d) of 24 the Act changes in the then-ef fective Partial Requirerents R 25 Rate applicable to. City other than changes in rate design. 26 Changes so filed shall become effective pursuant to Section i ,g g es= m ag w r e-v ee-H+-yw--- 32 e g e --4 w eW'w ew w--eg 7 f'e-Lgf w -esw aw W g re-e @a--en-a-en-=e w e:MF w-weww-wrysert--+gwrN=ve-- te-A--ew re w'*w*- 'er'wg-emw--ee-er=ww mr-www-w*e i H'4

' 9 :. # e ef :ne-Act, notwitnz:cncing :ne penden:. E::::r's f.;i.. Of chnnge in :::; rater.erru:. tr thir ???:de-r 15.1.E.1

f, while z enange ir ri:e :endered g

fer filing pursuant t Secticn 15.1.6-is s:ill gend:ng, Edison :s unable to make effective a filing cf a change in 6 the then-effective Partial Require =eits Rate pursuant.to 7 Section 15.1.6.2, Edison shall not be precluded by this 8 9 Agree =ent f rom requesting that the change in rates filed 10 pursuant to said 15.1.6 become. effective pursuant to Section 11 205(e) of the Act,' to the extent: of permitting Edison to achieve rate levels that Edison could'have achieved if it 12 13 had been able to make effective the change tendered for 14 filing pursuant to Section 15.1.6.2. 15 15.1.6.4 If a change in rate filed by Edison 16 pursuant to Section 15.1.6 has become ef fective, but has not 17 been determined by final order of the Commission, no longer i 18 subject to judicial review, to be just and reasonable, i 19 Edison shall have the right to file changes in the newly 20 ef f ective Partial Requirements Rate pursuant to Section 21 ' 205 ( d ) of the Act; provided, however, that changes-in the rate ! 22 design shall not become effective until (i) they have been de-f l 23 termined by final' order of the Commission, no longer subject :: j i 24 judicial review, to be just and reasonable or (ii) 2 years 25 after the Tender Date for filing such changes pursuant to this 1 26 Section 15.1.6.4, whichever occurs firs.. i.. -..... - _ ~... -. -.,. _..... ,.. _,~....,..-,.

7 'mtvi:nstanding t..e ::::::::ns :f :n:: 3 e : ; :.- .s,.......,23 s.4.. - e.24 .w,,,..s....

n: ::-

.z

;nder Se::::n ;;5,d. :: ::.e.. :.,

?r::a: Fe u;re snts Ra:e appli:::le :: C i :' 1..f 2;:r :nzn ez t s a'.1 ber + effective pursuant to see: ion 205.e of :ne A:: e 1 when such filing is made by-Edison under.the fo' low ng cir: r-s a, Edison has been directed to make such filing (1) by 7 stances: a lawful, applicable. regulatory ' authority or (ii) by request of the Commission staff.or senior or supervising staff representa-9- 10 tive of the Commission, when failure to comply with such 11 request may, in Edison's judgment, result in Commission action 12 adverse to Edison. Such filing shall set forth in detail the 13 specifics of such request and the name of the person making 14 the request. 15 15.3 Rate Desien Changes: For purposes of this Section 16 15, a change in rate design means a change in any element of 17 the Partial Requirements Rate schedule resulting from a change 18 in the method of distributing costs of service among the 19 elements of the sate schedule, except those changes in elements 20 of the Partial Requirements Rate schedule which result from 21 changes'in statistical input to the cost of service analysis en 22 which the elements of the Partial Requirements Pate schedule are, 1 23 l based such as -kilowa'tthours, kilowatts of demand and other f ac-l 24,' tors to be defined by the Parties. Any new element of cost not I 25 I previously included in-the cost of service can be added withou: 'l being considered a change in the method of distributing cost prob 26 l I

i....

.---.~,,,.,m,, -,%.~__.-

ir le?? t '" ? " 25

"* ~~~*' ~~*****

~., .. ~.. ' '.. '. " : f.~.. I ~~

- ~ ~ ~ '

I .. :'; i: : Part:a1 f.ScuirSOSO:S Serv:Ce 1.~. s -........... y.. . - -.. :.. s. L'.

e.... :..,

sr.cns..: n..- --...:-... -.-.~..: O 4 .. 1

e-lac::cn: :::::i: :

E, 15. '. 1

1. daily capacity availability (One

er 6 ! expressed in hileva:ts for each day) shall be de: ermined fr:

7 each City Capacity Resource, and shall be equal to the sum of 8' the hourly availabilities as recorded by the Idison dispatcher 9 (expressed.in kilowatts) of such City Capacity Resource during 10 .that day divided by the hours in that day. Such daily capacity 11 availability shall not exceed the Rated Capability of such City 12 Capacity Resource for that day. To the extent that any City 13 Capacity Resource is unavailable when called upon by the Idison 14 dispatcher for load or for test, such portion shall thereafter 15 be deemed to be unavailable until demonstrated, by successful is tests of the type which Edison would normally perf orm under '7 similar circumstances, that such portion is available. 18 16.1.2 For each City Capacity Resource, a 19 kilowatt difference shall be determined for each day, which 20 shall be equal to the total Rated Capability of the Resource for that day minus its daily capacity availability determined 21 pursuant to Section 16.1.1. City shall acquire or purchase 2~' 2a- 'l to Section 16.1.3, for each City for that day, pursuant 24 Capacity Resource an amount of Replacement Capacity (nct to 25 exceed the kilowatt difference determined for that day) equal 26 I ) ) I t -

. ~.... ^' <4i --a -=v4-"- >avat differeare wri:- --a,--- l i:;; 2 :2 I:r.:ns: d:- :nd n : c:..::i: f r 70 Or : re- {

nse::::ve day

rtsd;2 si; preceding tna; day, er i;;.: ns-

~ nir _: '.: i l r u : - i;ffs:sn:t whi:P exists f:: :P.a : d z;. and '.as existed f: 1:: :: ::re ncn-consecu ;ve days during 6

he 1 0 conse:utire day perice' immediately preceding that i

7 day. 8 16.1.3 Subject to Section 16.1.7, City shall 9 acquire or purchase Replacement Capacity for each City 10 Capacity Resource as follows: 11 16.1.3.1 By first withdrawing a number of 12 kilowatt-days from the Scheduled Maintenance Account for 13 that City Capacity Resource equal to the number of kilowatts 14 of Replacement Capacity to be acquired for that day pursuant 15 ee.Section 16.1.2. Edison shall supply the Replacement 16 Capacity required under this Section 16.1.3.1 and Edison 17 shall make no charge for such Replacement Capacity. 13 16.1.3.2 After the Scheduled Maintenance 19 Account for a City Capacity Resource is exhausted, by 20 ; obtaining Replacement Capacity f rom City Resources integrated 21 i for Replacement Capacity purposes, or by a purchase of I i, Replacement Capacity from one er more Third Parties 22 2a,i outside the Edison Control Area, or Edison, or both; p,rovided, t 24 that, in the case of a purchase from a Third Party, such 2S purchase shall meet those qualifications and follow those 26 procedures set forth in Section 8 which pertain to the 1 l i. . ~.

4 .. _..~

- 2-~*.*

C'

~. d * : _ r. e..is.;T

..e.5-O T ne exten: City does not or:a:r :-ep acenent wapacity f r e-1 I e24--. ....ig,g ---..e, Edisen shall -.w,7 2 ~ ar.i sell anf it; :h-11 7 rr'.:rs rrr-Fepisce=ent t f, . : p : i :.'. 16.1.3.3 ?.eplacemen: capael:3 sna11 be 6-t I measured at'the Point of ;+11tery. In ds:srmining the 7 amount of. Replacement Capacity to be accuired er purchased 8 9! by City, appropriate average transmission loss adjustments lo shall be applied to reflect the availability of such 11 Replacement capacity at the Point of Delivery. 12 16.1.4 Unless otherwise agreed, the charge per 13 kilowa tt for Replacement Capacity which City purchases in any day from Edison under Section 16.1.3.2 shall be equal 14 15 to one three hundred and sixty-fif th (1/365) of the sum of 16 the' following: 17 16.1.4.1 The current annual revenue requirements of those Edison generating units whcse dates 18 of firm operation occurred during the 5 years prior to the 19 in which such Replace =ent Capacity is purchased, 20 ; year divided by the sum of the kilowatts of rated capability of 21 22 such Edison generating units; plus 23 16.1.4.2 The current annual network and 24 po in t-ro-po in t transmission service charges established such Edison generating units to the Point of Delivery 25, fre 28 and weighted in accordance with the rated capabilities of .e l : ) . ~.. . _. ~. _,..... -.., _ _ _,,.. _,.,..,

~. .:.. 4.3 Iransmis:::.. serv::e en=- ae 3[ associated wit' the City Cip :it,- .:::::+....:.; th* .i .,.. e. - C. t.. : 21;10:. :: ::.s i::li f. : 17.004 CT. r?t: E are for :: n ::::i:n servi:s :vsr :ne ra s :: i. E. 15.1.i ne curren: annua". rsysnus rer:fre e.- 1 '

ftr t;

.:....lon Ic.a.4.1 sha;; eenris: cf the charges, f 1 S e ffe::ive at :he ti=e of City's purchase of P.eplace=ent I 9 Capacity, for: (i) return on rate base, (ii) depreciation, 10 (iii) taxes on income, (iv) property taxes, (v) insurance, 11 injuries and ' damages, (vi) administrative and general 12 expenses, and (vii) operation and maintenance costs not 13 associated with the incremental production of energy. l 14 16.1.6 The charge-per kilowatt set forth in 15 Section 16.1.4 shall be increased 16- ' to provide for average transmission' losses from such Edison generating units to the 17 Point of Delivery and weighted in accordance with the rated 18 capabilities of such Edison generating units. 19 16.1.7 If the then-current reserve situa tion in 20 the Edison Control Area requires, in Edison's opinion, 21 purchases of capacity from other control areas in order to 22 maintain er restore the reliability and integrity of the 23 Edison Control Area, City shall use its best ef forts to 24 purchase.Feplacement Capacity from Third Parties outside of 1 "5 the Edison Control Area. l 26 I 16.1.8 Unless-otherwise agreed, the daily charge l : I

e 1-per n.

i: :

.:Sn=.121:n of Ci:y's p.::n.:.at :i ?: p*. rc e.t C r 7 ? c i ti-f re-Th ird - parties shall-be e:ual te l t ' s......... ...... u.. :. :..' ;.. :..... r..scissi:n service :hsr:e established in :::::i:.:e v: : 5 . 5ection E and Appendices - and I, f:r ea n c.a; .:.n: wni:r t-6;[ suen '.eplacemen: Capac.:: as ransm:: ec. r I 1' 7 16~.2 Contract' Energy: 16.2.1 Edison shall sell'and City shall purchase-8 Contract Energy'as rectired each hour, which shall'be-(i) the 9 amount of energy capability associated with the capacity 10 11 Credit 'for that hour less (ii) the amount of energy received as determined from schedules during that. hour (adjusted for 12 13 transmission losses to the Point of Delivery) from City i - 14 Integrated Resources, but not less than zero. 15 16.2.1.1 To the extent a City Capacity 16 Resource is available but not scheduled or dispatched by I Edison, and Edison instead supplies that amount of Contract 17-18 Energy, Edison shall sell and City shall purchase such 19 ' Contract Energy at Contract Energy Cost or City Incremental 20 Cost for such City Capaci:y Resource, whichever City has e 21 designated (i) in the Supplemental Agreemen for tha-22 Resource, (ii) upon three years notice to Edison, or 23 (iii) when a change'in the Contract Energy Cost fo r=ul a $i 24 has become effective, c 25 16.2.2 Contree: Energy Cost: The cost of Contract Energy for each hour shall be determined by the following 26 -61 --i-p .rt---4e---m-

ivay..wc e tw gg.-

gya*-p-gwpsg gp gg-eq.-M q-- gyg--@4e J y,.-y7, y gi.y py rygmpg.- q e e-q y, m spyp y-.e-.gy-.9 wy s e e-A v*t--- r -- 'y =*y m -+--er 18

l l '1 (100) ? l ) I =..: 2.,

13,.;,

2 1 Cr" = C trar: E.ercy Cost, excressef in te rms ~ 4 of dollars per h: :wl:tncur. 5.:'.....%

st, 1: f f : r :- -

l 5 for the end cf a..y :. n:h, shall tt

iracle :: ssis:

f i

6' oy Edison to City in the nex: succeefing =onth. Edison's fuel cost, expressed in terms of dollars 7 FC = 8 per British Thermal Unit (BTU), for conventional oil-fired, 9 combustion turbine and combined-cycle generation. Such cost, 10 a t the end of any. month, shall equal the weighted inventory 11 cost of liquid fuel used for such generation, plus operation, 12 maintenance, depreciation and tax costs associated with such fuel. Such fuel cost shall be weighted in accordance with 13 the BTU content of each type of fuel in inventory at the end of such month. Such cost shall be de ter=ined and 1*" le reported in Edison's f 2e1 oil inventory and commitment 17-statement prepared by Edison and e.ade available to City each month. Such cost as determined for the end of such month 18 19 s~o sales made by Edison to City in the shall be applic,abit t -.N 20 next_ succeeding month. 2~' A heat rate, expressed in terms of BTU per HR = 22 kilowatthour of conventional oil-fired, combustion 23 turbine, and combined-cycle generation. Such heat ra e 24 shall be determined annually from data contained in Edison's 25 latest Form 1 Report or its successor to the Commission and shall be weighted in accordance with the net generation i i -6:-

e i I .2! for sucn piants. u c.. u

c..

.u.., -". ear 8-r-s u r :. '. z t e s : rerrr:, shall :e app'. : :le to i sals: Idc 5". Ifir:- : O --; durin- :ne 11-::.:n : cried 5, ccmmencing M.ay 1 cf tha ye ar : E A i can! =, othe r cos.s a ssocia:sf,cie..hi pr:::::::n OC = in :erms of ac11ars pe r kilowat:hcur,' of such energy, expressed 7 of conventional oil-firsd, combustion turbine, and combined-8 9 cycle 9eneration. Such other costs shall be ecual to (i) the sum of money reported by Edison in its latest Form 1 10 Report or its successor to the Commission for those plants 11 12 providing such generation for FPC Accounts 500, 502-507, 13 and 510-514, inclusive, divided by (ii) the sum of the 14 net generation (exclusive of plant use) from those plants 15 as reported in such latest r e po r t. Such other costs, as 16 determined by Edison in any year from such latest report, 17 shall be applicable to sales made by Edison to City during 18 the 12-mo_n.th -period commencing May 1 of that year. = Transmission losses, expressed in percent of 19 L 20 net generation, from the conventional oil-fired, ecmbustion 21 turbine, and combined-cycle generation. Such 1:sses shall 22 be determined annually from the point-to-point and ne twork 23 transmission service losses established by Edison for that i of year and the mileages from such generation to the P0 int 24 25 Delivery. Such losses shall be weighted in accordance I 26 with the net generation (exclusive of plant use) as reported J l -c3-1---- 4 - .w w-- 9w+, w-p .m,,,,...,-,,i. -y-6, ,,,.n g -a-.m

in Edison's lates: Form i Recor

its sa::s:::: :: ::.+-

i i

-.irsic.- fo r sa:P,:1 an ts.

? rr !---ar, 3- #^-a--ima? -v i f Idison :n any yarr fr:: sa:n .1 s:: :::::., applicable to sales made by Id _ son :: Ci:y during the 5l 12-month period ccmmencing May 1 of tha istr. 6l 16.3 Chances in Rates'and Char:es: 7 16.3.1 Except as provided in Section 16.3.3, and notwithstanding any other provision of this Agreement, 8 9 Edison shall have the right, in f urnishing to City 10 Replacement Capacity or Contract Energy, or both, to, 11 unilaterally file with the Commission for a change in rates, 12 charges, classification, or service, or any rule, reg ula tion, 13 or contract relating thereto, under Section 205 of the Act 14 and pursuant to the Commission's rules and regulations 15 promulgated thereunder; provided, that no change shall be-16 made in or be inconsistent with, any Integration Agreement 17 unless such right to do so is expressly, provided for in an 18 Integration Agreement, t 19 16.3.2 Notwithstanding any other provision of '20 this Agreement, Edison shall have the right to unila:erally 21 modify the charges for Replacement Capacity by applying 22 the provisions of Sections 16.1.4, 16.1.5 and 16.1.6, and 25 to unilaterally modify the charges for Contrac Ener y by 24 applying the provisions of Section 16.2.2. 25 16.3.3 Whenever in Edison's sole judgment i: 26 determines to do so, Edison may unilaterally file changes i s ; -~

.~ M *9 rff-- rf r --- ' ear-i-r 16.1.' lf.'.?

.0 3 :'....

~2. ~ ~ ~ d.1.6 and 16. 2. 2 w i-h the C;r.r..s sic. O f ' :..s ;.::: pr0vided, that any su:.. :nsn e snti..: - : e::.+ t has been de:er-ined by finsi crf s: ef f:::1ve until (i) i: .f,

i :hs ::..issien, no longer subjee: to judicial review to be'just and reasonable, or (ii) 2 years after the Tender s

7 Data for filing such change,'whichever occurs first. 8 16.3.4 In case of such a change which has beccoe ef f ective. prior ' to final order of the Commission, no ' longer 9 lo subject to judicial review, which results in an increased rate or charge, Edison shall upon order. of the Commission 11 keep accurate account in detail of all amounts received -12 by reason of'such increase and, upon final order of the 13 14 Commission, no longer subject to judicial review, Edison 15 shall upon order of the Commission refund, with interest, 16 to City such portion of such increased rates or charges 17 as by the Commission's final order shall be found not 18 just and reasonable. 19 16.3.5 Notwithstanding the provisions of Section - 20 16.3.3, Edison shall have the right to file with the 21 Commission under Section 205(d) of the Act changes in the 22 wording of one or more of Sections 16.1.4, 16.1.5, 16.1.6 23 and 16.2.2 and such changes shall becc=e ef fective pursuant l to Section 205(e) of the Act, when such filing is made by i 24 1 i 25 Edison under the following circumstances: Edison has been 26 directed to make such filing (i) by lawful', applicable 8 P 5 'WWW E 'e+'s '7M rir'*e -m*T'e4Pe ett+ e #'wr W * =89tm. 'es 8t'a-*PM*'u4-N"eM***e'v*ef'P+Ma e W-t 'e*v-er=++"'ve-F WM5WF$Y MFWTF%"'WP'T1'*"t*-T%v'T84WM#W'dM'.*9F'N' 9

'd'MT-+"vt-f-rt h-r w --v?*1r-sk-

-+7 r

l <iis 3v. ..c.,.e. c c--_ igg.-- .......-._....4... 1

id :: : :::::: :: supertisine.:::ff repre::n- ::'.a :f 1

ni

-.:ss::n, wnen failure to

ply with sa:.- re ez-i.- Ifi::.':

ufgrcnt, result in

rtissic.- :::i -

5.:f":sse :: Edis:n. Su:h filing shall set f e r :.- in de:a ; 6 the specifics cf such re:uest and tne name ::

ne rerse..

I i 7 =aking the request. ENERGY FROM CITY CAPACITY RESOURCE PRIOR TO ITS DATE 8 17. z 9 OF FIRM OPERATION: 10 17.1 City may, on 30 days advance notice to Edison, 11 request that the energy scheduled and dispatched by Edison 12 f rom a City Capacity Resource prior to its date of firm 13 operation be considered Non-Firm Energy. In such event, I 14 City shall be entitled to receive energy credit for such 15 i i losses to the Point of 16 l energy (reduced by transm ss on Delivery); provided, that city shall make necessary 17 arrangements for the transmission of such energy frc= said 18 Ci:y Capacity Resource to the Point of Delivery. If City 19 does not so request, Edison shall pay City for such energy 20 at a rate ecual to Edison's Contract E.n._er.av Cost, reduced b.v 21 transmission losses to the point to be agreed upon by the 22 Authorized Representatives, where such energy is delivered 23 by City to Edison. 1 24 17.2 Edison shall cooperate, when conditions per=it, t 25 by providing a load for. warranty testing for all new Ci:y 26 Capacity Resources. l l I I _

~ l 1~.; 7: ;;r::se s c d 5e ction l~.1,

..e d::e f f i r.-

l Or:r:ti-- - :22 b- :Pe data when. a City Ca c. ac ity Resource l 24a:..-.11 ist: Je Inl n:2 e r.:.~.: : -. t :

r. L.

e. ran rel;;;;; Operate rirul:Ine:usly s0 as :: deliter energ; 5 inte the Ed: son Con:: 1 Area at its ra:ed capasi'ity. i , a. - -,.:~ 1 ,..h.--,,1.m - - ' a 6 c. 7 18.1 Credit For N0n-pirm Enerev: If City acquires anc. integrates Non-Firm Energy, City shall be credited for such 8 Non-Firm Energy which is scheduled and dispatrhed by Edis n 3 9 lo during each hour, reduced by transmission losses to the Point 11 of Delivery, to the extent that such Non-Firm Energy is used that portion of City's Load which is not being supplied 12 to meet 13 f rom City's other Integrated Resources during' that hour. 14 18.2 Edison Purchase of Excess Non-Firm Enercy: 15 Edison shall purchase from City all Non-Firm Energy which 16 is in excess of City's Load in any hour at City's cost, 17 which cost shall include but not be limited to charges made by Edison and others to City for transmission service plus 18 19 15 percent of such cost; provided, that such energy is 20 l economically usable by Edison. 21 l 18.3 Sale of Excess Non-Firm Enerev bv City to 22 - Third Parties: City may sell excess Non-Firm Energy, not 23 purchased by Edison pursuant to Section 18.2, to Third 24 Parties within the Edison Control Area which have an 25 integration agreement with Edison, or to Third Parties 28 i ou: side the Edison Control Area, provided: -os-I = - - e r* r-e-6% rn.- ,e-e--- r- -r-- .-e e e -e e

=- 15.2.1

is f un::icnally and tecnnicall;.

l J.:rible'f:: Edi::r :: ::hedu:s.znf dirrstrh such excess

: :.- 7 :. r-I n s : y ;

IE.2.: Ci:y shal'. ps;. Ed.sen :he ap,licable e cc :: fer schedulin: and disr. a::nin: su:h excess N:n-Firr I I )

e. '

E n ere. v ; 7 18.3.3 Such excess Non-Firm Energy which City ^ sells to a Third Party shall.be subject to immediate recall 8 1 9 by Edison; 18.3.4 City shall arrange with Edison and 10 Third Parties as applicable for the transmission of such 11 excess Non-Firm Energy in accordance with the applicable 12 13 provisions of Sections 18.5 and 18.6 - 14 '18.3.5 The Parties shall execute applicable 15 transmission service agreements. is 18.4 Soinning Reserves: Edison shall provide spinning reserves to back up City's purchase of Non-Firm 17 18 l Energy. Edison may charge City for such spinning reserves q 19 during a billing period at the incremental cost incurred by 20 Edison in providing such reserves, when the rate of delivery 21 o f such Non-Firm, Energy exceeds the capacity purchased 22 during such billing period by the City under the Partial i 23 ?equirements Pate. ~ 24 ' 18.5 Firm Transmission Service for Non-Firm Enercy: I 25 ' 18.5.1. Edison shall use its best efforts to l 2s l provide firm transmission service for Non-Firm Energy over 68- .,m o qu*.-ee-t- -eg u yes -Nyy,1% qwpW+g e g -1y e rg,q ow.hy +w g q spa +=ge pg wepseeM6pg,44, .m y. gy g gwe,ew, e gh4c%erwg., --,= egg-i-oa%.t'7erw +er ve 9 uwwe'=-$--s*kuna au 4sr=*---a-we+==-* same- --+*wewe'

'-w*""'-

. - = _ - - -. -. - ~.. ~ r an sm i s sion.: ac i'. i;;e z

el. :.n +; f :) Ii;::-

en;: in: l rir' 7: guested by City. .:.5.1.. i.................. 4

-:in: Of I41;very shall be pr:vided i. ::::rfance.v;;.-' :ne 5'

appli:at'e pr: visions cf Se: ::: ;.. 5;ch ::ansm;221 - 4 i 6'i service may os provided for a per;; ci m:re :: le:s than 12 months and charges shall be calculated on a basis 7 ^ 8 proportional to charges applicable to the rates set forth in the Network or Point-c-Pcint Transmission Service 9 10 Agreements.- If the period involved is not a multiple of 4 11 12 months, a special agreement shall be required which may 12 embody changes in the terms and conditions of the Network and 13 Point-to-Point Transmission Service Agreements to reflect 14 conditions occasioned by the different period of time 15 involved. Charges hereunder shall not apply to Non-Firm Energy being transmitted over Edison Transmission Facilities 16 17 to the extent that City is already paying Edison for and ,i 18 not using firm transmission service thereover. 19 18.5.1.2 Such transmission service may be 20 from the Point of Delivery, a Point of Attachment or a 21 Point cf Interconnection to a Point of Attachment or a 22 Point of Interconnection and shall be provided pursuant to when such service 23 a specific Transmission Service Agreement, 24 -can be found to be functionally, technically and econcmically 25 feasible znd can be effected without adverse effect on 26 service to Edison's own customers. When applicable, such : i ,,v,y-v. r .w.--ve, ,m,,--- --o-,, ,.4-.,..., ,.,,1 tu,-.,, c-',~,,,-.,,.,-,..ww.w--,-,,---.-r...-----e-,-.,~-.4m--,------e,-

2;e:;..: a; : e e. c r.: 2.....

e dece;:: d In:

i..d t ::: ::: f. :. ; i a e d * '- t '- = "---iscion to set forth the applicable terns, j r.tr sr hereunder Ini;_ n: apply :: T:n-?;r-ine r:- :e;ng

:?. c l

5 ransmi::ed ever Id:s:n Transmission T A;.-.;.62 l t s. eiten: tus C c:: ;6 s--esa;.s n3 E-s;r :..

17. -

~. ci;n;

s 7

firm transmission service thereover. 8 18.5.2 For firm transmission service for 9 Non-Firm Energy over Transmission Facilities outside Edison's Certificated Service. Area, shere such f acilities 10 11 are interconnected with but not solely owned by Edison, 12 City shall be responsible for negotiations with the 13 appropriate owner or owners of such Transmission 14 Facilities. Edison shall cooperate with City in its efforts 15 to obtain such transmission service. 16 18.6 'Interructible Transmission Service for 17 Non-Firm Enerev: If City requests that Edison provide 18 interruptible transmission service for Non-Firm Energy, 19 an agreement separate and apart from the Integration Agreements may be agreed upon by the Parties and executed 20 Such 21 prior to the integration of such Non-Firm Energy. 22 interruptible transmission service provided by Edison 23 for Non-Firm Energy shall be in accordance with the following 24 provisions: 25 18.6.1 City shall give Edison seven days' 26 advance notice of its desire to purchase such interruptible : 1 .... ~

l I 4 4 ......i.............. I .10.. 2..1' 1 d iv s i c,: 2nd indc: :.. 1 f 3 f;.;r.; wi tt. Ons ;;rri: ic.. :t.s :::Irt e a; esesn: I:: ; r.. :. - I {

--itic transnist;:r Isrvi:s. ' 5 ; :.. Esgtrate 1;ree t--

.1"_

l 5: set f:rth the :er :. : nditi:ns. r2:e2 and Onarges cr.:er s 1 6l which the City shall.grchase

P interrup;itle l'

7 transmission-service. S 19. SURPLUS CAPACITY AND EXCESS ENERGY FRCM CITY 9 CAPACITY RESOURCES: 10 19.1 Surplus Cacacity and Associated Enerev: Edison 11 shall purchase from City surplus capacity and associated 12 energy from any City Capacity Resource, as identified by l 13 City, the amount of said capacity being that which City l 1 14-shall declare, upon 12 months advance notice to Edison, to 15 be surplus to City's estimated Lead during the period of -16 sale. Such purchase and sale shall be for a minimum of 12 17 mon:hs, and shall be subje et :: the following: 18 19.1.1 The Part.'es shall enter into a separate 1; 19 agreement for the purpose of implementing the rights and 20 obligations contained in this Section 19.1; provided, that i 21 such separate agreement shall be consistent with this 22 Section 19.1. 23 19.1.2 City shall first plan to use such Ci,ty 24 Capacity Rescurce to meet City's esti=ated Load during 25 the period of sale. I 26 19.1.3 The amount of energy to be sold to Edison l-l i

_ = - _ 1

n anv.::: shall ce :nt: wn ; :.- :s ast:::stid '.::.- :ne 2

spa c i t; ::13 :: Ific:r under t '- i : F etier 19.1-and shall ha 3

' :s;:..a:ad :y mu.::;.y:n- :nt :::a. 3 :. 02 1:ity Fes: ::s fr: wh i '.- a 4 d spa ched frc each 2i:3 5, sale is made by rhe ratic cf (;; the esps:::y ::;d :: Edir:n i 6! fror that City Capacity Eesource to (ii) ;;s Es ted Capa::1;;;. 7 before the sale of capacity to Edisen. 8 19.1.4 Edison shall pay City for such capacity '9 and associated' energy to be purchased by Ediscn frcs each 10 City Capacity Resource at a price which shall fully 11 compensate City for its costs associated with such City 12 Capacity-Resource.. Such costs shall include, but not be 13 limited to: debt service, depreciation and return; lease 14 payments; rents; taxes; f uel and fuel related cos:s; 15 purchase power costs; other operation and maintenance costs; 16 and transmission costs. Edison's share of the total costs 17 shall be determined by multiplying total costs by the ratic 18 set forth in section 19.1.3. 19 19.1.5 For the purpose of determining the Rated 20 Capability of any City Capacity Resource af:er the sale of 21 capacity to Edison, the Rated Capability cf such City Capacity i 22 Resource shall be ecual to its Rated Capability before the l-23 sale of capacity to Edison minus the a: cunt of capacity 24 being sold to Edison frcm such City Capacitv. Resource. 25 19.2 Excess Enercy Frem City Ca:aci:y Rescurces: Energy i 26 dispatched frem one or more City Capaci:y Resources which .' s ~

- In-

..: :: sr.31. :e 1 exceeds the recuirerents of C;;y's ~_:ad I I 2 excess energy ar.? i:. C. ~. ': :.:_r:h:::f by Of f --- ? i 4 L. sin:le City Cagar;:y Rez:ur:e is I: d;;::

.s.,

....:is 4, f r such energy s..all :s :ne City :n reren:C. C:r-f ::.:: E City Ca:acity Re sc urc e (0.1:s 15% of su:' ::s ;,.:he ~:-fing 1 of which would have been reduced to avoid exceeding :..e i e-7 City's Load. Where more than one City Capacity Resource 8 was so dispatched, the charge for such energy shall be cf 9 the City Incremental Costs (plus 15% of such costs) those City Capacity Resources, the 1cading of which would 10 11-have been' reduced to avoid exceeding the City's Load. 12 19.3 Excess Enerev From City Cacacity Resources and 13 Excess Non-Firm Enercy: If it is necessary to determine the 14 source of energy which is purchased by Edison during any hour 15 under Sections 18.2 or 19.2, or both, the purchase shall be 16 deamed made from the particular City Integrated Resources 17 which would have been reduced during such hour to avoid 18 exceeding City's Lo2d. 19 19.4 Sale of Enercy Available Frem City Caracity 20 Resources to Third Farties: To the extent a City Capacity 21 Resource is available but not dispatched by Ediscn, Ci:y may I' l 22 sell energy associated with such City Capacity Rescurce to 23 Third Parties outside the Edison Control Area. Sections 24 18.3.1 through 18.3.5 shall apply to such sale as they l l 25 apply to sales of excesc Non-Firm Energy. 2B / I l l j

3 i

Q H ^ .. ~.

e.,- I 2 7.::: I::E2C : 20.1 sale of Cata:i:v and I..er y: If If:s:.- f:ez.:: a :: 2, - f:: integration a pr:,:z:f Ci ; E::::::: II : E i y apacity Resource, City may neetr:ne'er pre :e ef wi t.-

n sa:'-

s the construction or acquisition of such Ess::::e. City shall' not receive Capacity Credit for such 7

event, Resource until it has been integrated as a City Capacity 8

In the absence of such integration, City may sell 9 Resource. L 10 j the capacity or energy or both of such Resource to Chird 11 Parties outside of the Edison Control Area. 12 20.2 Firm Transmission Service for Non-Intecrated 'ity Edison shall provide firm transmission service for 13 Resource: 14 a non-integrated City Resource for the period of sale to 15 Third Parties outside the Edison Control Area under 18 the applicable provisions of Section 18.5. In such case, 17 the references in Section 18.5 to Non-Firm Energy shall mean l 18 the energy associated with such non-integrated City Resource. l t '19 20.3 Interructible Transmission Service for l 20 Ncn-Intecrated City Resources: Edison may provide l l 21 interruptible' transmission service for a non-integrated City i 22 Resource for the period of sale to Third Parties outside the 23 Edison Control Area under the applicable provisions of 24 Secti.n 18.6. In such case, the references in Section IE.6 25 to Nor-lirm Energy shall mean the energy associated with j i 26 such non-integrated City Resource. I i s - -. ..i.~.... ,.m_- -... -.. ,_.._-.I

w ~!.4 Ener:y A :::rsted-wit.- 'N..

te:ri ef !; i Pascurce:

The energv; as!ociated with' a non-integrated - City I ii ~ ~ ~ ~ ~ ' " * * .., ;; ; C ' ~ I;* :~.

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. ;

T. 30 c t Io ns E. N - I" d '
3.

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O*: IIE*l!"E TCE CIT * ~k?A~!7*l EESC**E~E3:

h u es: son :. ..pr v;;6-apo.

y's regaest

: ::.

7: transmission service, in conj unction with ' Integrated 8 Operations, for capacity or energy, or both, associated with 9 City: Capacity Re sources. Such firm transmission service 10 shall include,1but not be limited to, capacity or energy, 11 or. both, associated with the ~ sources from which City may 12 obtain City Capacity Resources as referred to in Sections 13 8.1.1.1, 8.1.1.2 and 8.1.1.3. Such transmission service 14 shall;be furnished.in accordance with the following: l 15 21.1.1 transmission service on Edison's 220 ku 16 ' network (as such network is delineated from time to time in 17 Apper 'ix D), under rates, terms and conditions set forth in Appt. Aces C and D. Such transmission service shall be based 18 19, -on using Edison's existing and planned 220 kV network and l I 20 [ -shall be limited to power flows to the Point of Delivery. If 21 Ci:y requests specific transmission service both to and from 22 ! the Point of Delivery, and if such service is technically t 23 l feasible, Edison shall provide such service and shall develop i 24 I cad tender for filing appropriate rates and charges under l 25 I -Section 205-of the Act. l 28 21.1.2 Transmission-service outside the 220 kV s : i ~ _.~,e,_.-m-.b...,-.., r -~.,...-~.r,..,.,e ..,-_._..--....._s. ..,. ~....., ~.. _. -... - - -... _,.. - -

1 ne-work, out w :..:n Ed:s:n's Cert;f;:::ed Es v.:e Area, O r. a l t ea-C

int-te-:cint b::ir under rater.. :r:.e.i

---f3 '--e

an; i.

i; ::. ::1..r : 2.:n ;.. f rth in A.:.:end::es 4 e cased on using Edis:n's Transmis ri:.- Fa:ilitie r e:::: ;r. 5i at the time service is to cc rence anf shal'. de 'i-i sd :: i 6i powerE flows to the Point of Delivery. If City re uests 7- . specific transmission service both to and frc: the Point of 8 Delivery and if such service is. technically feasible, Edison 9 shall provide such service and shall develop and tender for 10 filing appropriate rates and charges under Section 205 of the 11

Act, 12.

21.1.3 If City recuests transmission service 13 outside Edison's Certificated Service Area, Edison shall use 14 its'best ef forts to make ' arrangements satisfactory to the 15 ' Parties for transmission service over Edison's solely-owned 16 Transmission Facilities existing at the time such transmission 17 service is to commence. If City desires transmission service e 18 over Transmission Facilities outside Edison's Certificated 19 Service Area, where such Transmission Facilities are 20 interconnected with but not solely owned by Edison, Cit-21 shall be responsible for negotiations with the appropriate ' 22 owner or owners of such Transmission Facilities for said 23 transmission service. Edison shall cooperate with City in its 24 ef for:s to obtain such transmission service. 25 21.1.4 Transmission service inside Edison's 26 Certificated Service Area frcm the Point of Delivery, a Point . i y

.:..~.n:

L I;ir.

r :e::tnns::.:. :: ;

: ; f i

2, e.: : a c n m e n t or Point of Interconnection, when such service '~.'.dtobefune-i:.:.~f- - :-.1 - '. ", -- * 'e .~., "..:i;'* End can be effe: ed w;-h:u-an adverse effe:: : E ser ice t Edison's own custcrers. E::h ::a..zziszi:n ze::::e i i 6i shall =e' provide? under-r:t::, t e rn.. -:.2 ::ndi ;c.2 :!.en :n t 7 effect and on file with the Commission er cursuant to a i i; 8 Transmission Service' Agreement to be agreed upon at the time. 9 In the event of disagreement, Edison shall develop and tender-7 -10 for filing with the Commission an appropriate rate schedule 11 and Transmission Service Agreement pursuant to Section 205 of 1 12 the City may oppose or seek modification thereof. 13 21.1.5 The Parties recognize that firm 14 transmission service for cepacity involves, technically, 15 transmission of energy at a rate of delivery equal to the ~ 16 designated capacity level. 17 21.2 For transmission service under Sections 21.1.1, 18 21.3.2, and 21.1.3, the Parties shall execute the applicable 19 Trdnsmission Service Agreement. 20 21.3 Except as provided in Sections 21.4 and 22 and 21 notwithstanding any other provision of this Agreement, 22 Edison shall have the right in furnishing transmission 23 ' service in accordance with Section 21.1 to unilaterally file 24 with the Commission a change in rates, charges, classification, or service, or any rule, regulation, or l 25 28 contract relating thereto. under Section 205 of the Act and i i - 1 l 1 l

.....ie,i,.,,7. ,.4-., .w. I

ul:: :s in ::;nder: pr:vided, :::: n: : nan:e 2.11'

.2 ids :. :: re :n::nsisten: wi:n any Integ ra-icn A;:eeren-

c.. : : ~ :::. richt :: de s is expressly provided f:: in- -

:sgratien Agreement.

6 21.4 Edison may file with the Cermissien under s 7I Section 205(d) of'the Act changes in Appendices C, D or I, 8 or in any Transmission Service Agreement applicable to City; 9 .provided, however, that changes in the wording (as 10 distinguished from the numerical designation of rate level) 11 shall not become ef fectis e until (i) it has been determined - 12 by final order of the Commission, no longer subject to 13 judicial; review,. to be just and reasonable, or (ii) 2 years 14 af ter the Tender Date for filing such change, whichever occurs 15 first. 16 21.5 Edison may file with the Commission under 17 Section 205(d) of the Act changes in Appendices C, D or E, or la in any Transmission Service Agreement applicable to City, a..d 19 such changes shall become effective pursuant to Section 205(e) 20 of the Act, when such filing is made by Edison under the 21 following circumstances: Edison has been directed to make 22 such filing (i) by lawf ul, applicable regulatory authority 23 or (ii) by request of the Commission staff or a senior or 24 supervising staff representative of the Commission, when 25 failure to comply with such request may, in Edison's judgment, 26 resul t in Commission action adverse to Edison. Such filing

a l

,,w... ,,,...... - - -, - -. ~,, y -y,,,-ur,.,.,._,,.m [r1 ...yv.f., ..,pe,,w.i., .3,..,.ww,, ,e ...,,,,.,,w,,e-=-r w + = * = w w e-s r = 5. c ' r

. ~. 1.: 11. Is': i:::n 1.. ie:al; :ne. specifics cf sa:n re es: a..d +4 .w. .u. -____. - i. e..

st-c.

- :nange : rate gurrutn: n 4-Ec: ::r ;;.

~1.5 vn;;h has beccme effe::ive pri:r ::

5 final-ceder.cf the C::::ssion, no longer subje:: c judicia; i .o: review, wnien results in an increased rate or charge, Edison 7 shall upon order of'the Commission keep accurate account in 8 detail of all amounts received by reason of such increase and, i 9 upon final' order cf the Co::ission, no longer subject to 10 judicial review, Edison shall upon order of the Commission l 11 refund, with interest, to City such portion of such increased i 12 rates or, charges as by the Commission's final order shall be 13 found not just and reasonable. 14 21.7. After Edison has filed a change in the wording of 15 the then-effective Appendices C, D or E, or in a then-16 effective Transmission Service Agreement applicable to City, 17' pursuant to Section 21.4, and while'such filing is pending 18 and has not become effective or if such change has been 19. denied by the Commission, Edison may file with the Commission 20 under Section 205(d) of the Act changes in numerical 21 designation of rate level of the then-ef fective Appendices 22 C, D or E or in a then-effective Transmission Service 23 Agreement applicaole to City and such changes shall become 24 effective pursuant to Section 205(e) of the Act, 25 notwithstanding the pendency of Edison's filing of change in 2e such rates pursuant to Section 21.4. l i s . i -%~s e mee+ w - _ ewe,w.ee n ar om w y -rw n..,m. ,m _.we--m-._m.,_, .m.m,._m.m.,

l'. E I f, wn ; fe a chance: n ra:e tendered for f:.:ng .-;;z.in: :: Ee:t.:n 21.' i

till p:nfing,- Efisen 'is unable ::

. _ife:: rte

...n; :.r in: :: ce::.:n 1;.-

: :nar. -

..e numerical desi n :::- Of :::e levtl Of :ne then-effer :.'s A :endi:es C, D c: I, cr of a then-effective Transmission 4 6 Service Agreement applicahle to City, Edison shall not be i i 7 precluded by this Agreement from recuesting that the change in I 8 rates filed pursuant to said Section 21.4 recome ef fective 9 pursuant to Section 2C5(e) of the Act, to the extent of 1 10 permitting Edison to achieve rate levels that Edison could 11 have achieved if it had been able to make effective the 12 change tendered for filing. pursuant to Section 21.4. 13 21.9 If a change in rate filed by Edison pursuant to 14, Section 21.4 has become ef fective, but has not been determined 15 by final order of the Ccmmission, no longer subject to I 16 judicial review, to be just and reasonable, Edison may file I 17 ' changes in such newly effective Appendices C, D or E or in the is i newly effective Transmission Service Agreement applicable to 19 City, pursuant to Section 205(d) of the Act; provided, however, 20 l that changes in the wording (as distinguished from the 21 ' numerical designation of rate level) shall not become i 22 ' e f fective (i) until they have been determined by final order I 23 l of the Ccmmission, no longer subject to judicial review, to 24 he just and reasonable or (ii) 2 years after the Tender Date 25 l f or filing such change pursuant to this Section 21.9, i 26 whichever occurs first. 80-i g wr-tv (e + s <--svr we y g w ,---9 sy-,-,ry*

rM+*1---s M

m-

.n a i ... ~ 1 If a change an :::e file; :; ld.::n.:.::: n: ::

c. e.

4 - - '1 2 h as become ef fective~, but has not. been determined l a j .; 11.e.:..-..... 4 .ef!:it -re, lev, :: be jus: ndire::cnable, Ifis: .ay file 5 wi:n the ';;rmission under Secti:;. l'i(f) of ::.e A::, changes { t 6~

n tne new.y.ef f ective Appendices ',

or E :: in :he ne ly 1

7 l. effective Transmission Service Agreement applicable to Ci:y, 8 and such changes shall beceme effective pursuant to Section 9 -205fe)'of the Act, when such filing is made by Edison under 10 the following circumstances: Edison has been directed to 11 make such1 filing (i) by 'lawf ul, applicable regulatory 12 authority or (ii) by request of the Commission staff or a 13 senior or supervising staf f representative of the Commission, 14 when failure to' comply with such request may, in Edison's 15 judgment, result in-Commission action adverse to Edison. 16 Such filing shall set forth in detail the specific of such 17 request and the name of the person making the request. IS' 22. BASIS FOR CHARGES FOR TRANSM!SSION SERVICE: 19 22.1 Design Ra tines: Charges for transmission service 20 shall be cased on design ratings for Transmission Facilities. 21- .Such design ratings shall be deemed to be as follows: 22 22.1.1 With respect to a transmission line 57 23 operated, or planned for operation, at 220 kV or less, e percent.of such line's capacity rating as set forth in 24 25 Schedule 18A of the Commission's Annual Power System 26 Statement (Form 12) for Edison or, if not required in such t l. ,, _..,.._-.,.._,,i,,i_.,.., ,.-_,,..._.,._..=u,_._._.____._.-

e e .e.. ....-339 g g g,; 7,. - ;;ng 3 7 3 3 7...j 7 3. ;,,_

s..'.. s,

.c.... '.-... ... e s.t a. a. t.. e. 1 .f:: A : 2.. : t e r..e l d :: nd;;;;rs, 22:: :191:::: ::::n-2: sa: ~

t.-: .:r e..

s:End a rd e. f:::'. shal;

: e er: :nzr Ed: :. ' :

_5 f:: :::ing :terhead ::-du::::,.hich, 1: present, shall n:: i s ce less than the current carrying :sprei:; f -hat line's 7 overhead conductor-which, at 60 Hert: centinuous alternating J 6 - current,. shall raise the-conductor temperature from an ambient 9-air temperature of 40 degrees Centigrade to a conductor 10 temperature of. 90 degrees Centigrade with a cross wind having 11 a velocity of two feet per second. If, in the future, Edison 12 no longer is' required by the Commission to submit data in the 13 form presented in said Schedule 18A, Edison shall continue to 14 furnish City with such data in that fo rm. i 15

22 1 2 'With respect to a-transmission l ne 16 operated or planned for operation at 500 kV, 1000 megawatts; 17 provided, that Edisen may establish different design ratings 18 for any 500 kV transmission line on the basis of the 19 stability studies described in Section 7.5.

20 22.1.3 With respect to the 800 kV DC transmission 21 line between Celilo and Sylmar Converter Stations, 1400 22 =egawatts, with all e: ipment in service, at the Nevada-Oregon 23 border, of which Edison's current entitlement is 21.5, percent 24 of such design rating. The design rating and entitlemen may 25 be revised by Edison as regional transmission facilities 26 - change. I i' 52-j 77 -t T' y ( TTVy' ame--e v'se-pueM*g.pW-- aco--en+w n

w+%ae" e t
en--+.M y-g e

iw-- ra ett-WT'w 7EGWr'r" d-eem'd-maw i m*

H j ,,.. :,., 7 73 3,_;- ) l i _:::,::3 :..: :

n; :::__ :: ::. :

s ::r .3 e r::::::ned :y Id:::.- I I : = r a r e *.n e s ~ 4

it::

sis by Lii::...=L:;- r-.:iisr, tm:=; ::her :: i..::. 5, the ::nfiguration,.. umber and arr ngemen: ef faci i:ies. ~ G ! equipmen: and criteria f : maintrining relistle serrice i-7 situations involving outages er emergencies. 8 22.2 City may, upon request, review studies made by 9 Edison which are used to determine the design rating of any at I 10 Transmission Facility operated, or planned for operation, 11 500 kV. If the design racing for such a 500 kV Transmission 12 Facility involved in providing transmission service under a 13 Transmission Service Agreement is changed as a result of the 14 stability studies described in Section 7.5, charges for such 15 service shall be modified accordingly and shall be reflected 16 in the next rate filing made by Edison with the Commission. 17 22.3 Either Party may request a review of (i) the 57 percent figure, or (ii) the basis for determining the 18 19 capacity ratings of a transmission line set fo r th, or proposed to be set forth, in said Schedule 1SA,-but such 20 shall not be made more of ten than ence in any five-year e3 request period. If such a review indicates that said 57 percent 22 23 figure should be increased or decreased by more than one percent, or if such basis sh:uld be changed, such increase, 24 25 decrease or change shall be made and an increase or decrease, 28 as appropriate, in charges for transmission service shall be i I

2- -ade and refle ed ir the dx; II:s fl.in: 51: e O ': 'd;E;r I a c ..d e.c

--i::i:-

f:t 'r-fe- ----^* ? ree en th= i i t 3_ res.1: Of :;;.. rev.a, r.e ::- c 2.... 4 re s:1u ti r t,- ar:i:ra:icn. _a . n.,.

r.,..1. v...e. v...: = -.,. r.. : :..:.

6 23.1 Prior to determining City's Ca; q. Credit for i 7 a City Capacity Resource, the Rate.d Capability cf the City 8 Capacity Resource shall be reduced to reflect average 9 transmission losses from such City Capacity Resource _ to 10 .the Point of Delivery. 11 23.2 Prior to determining the City's credit for energy 12 scheduled and dispatched frcm each of the Integrated 13 Resources, the amount of such energy shall be reduced to 14 reflect average transmission losses from each Integrated 15 Resource to' the Point of Delivery. 16 23.3 Los'ses for such capacity and energy shall ce 17 set forth in the applicable Transmission Service Agreements. 18 24, AggITRATIon: 19 24.1 If a dispute arises between the Parties 20 r egard ing (i) any question of fact or opinion involved in I 21 the application of the provisions of any Integration l 22 Agreement, or (ii) the interpretation of any provision 23 of any Integration Agreement, then either Par:y may call 24 for submission of such dispute to arbitra:icn, (unless the 25-subject of such dispute is within a regula:ory agency's I 26 jurisdiction), which call shall be binding on both Parties. I i _34_ i i W" ,mm -,p,,_

1 7.. 34.- t-- 4.. 2 ....--e. 2 c,..,; 1, s,.... -..., ...e r- ..,.,2, 4 u.,. 5',..o 22... ..~.t w..:. ~. ~. .c .-. :.~.-.... .....= =-..... i 6.such othe-D=-*y may, b ;.

ice :: -hs f rs-Fir y,

--= =-2 i i 7 l its own statement of the nature of the dispute, the issues 8 to be arbitrated, and the remedy sought by such arbitration 9 proceedings. Thereafter, the Party first submitting its 10 statement of the matter at issue shall have 10 days in which 11 to submit a rebuttal statement to the other Party. The 12 statements shall constit'ite the submittal statement for 13 arbitration. 14 24.3 Within 10 days following the submission of the 15 rebuttal statement, tne Parties, acting through their 16 Authorized Representa tives, shall meet for the purpose of 17 selecting arbitrators. Each Party shall designate an 18 arbitrator. The two arbitrators so selected shall mes: 19 within 20 days following their selection for the purpose 20 o f selecting a.. third arbitrator. If the two arbi:rators 2~1 selected by the Parties fail to select such third arci rator 22 within said 20-day period, then the two arbitrators shall 23 reque st from the American Arbitration Association (or.f ce 24 a: tha a similar organization if tha t Association does nc: 25 time exist) a list of arbitrators who are qualified and f 28 eligible to serve as hereinaf ter orovided. The two 1 l i) -S - l I l 1 l

= - :-eters selected ev :ne ~arties sha;; t :- :.r : ......:n; .tres frc the li t rf *r'dtr:::rr :- f *: r - i '- - ' t .ni.ar:. me re air.in: en sa;;..:- c.;_.

t : r. i :....;

cr:::ra :r. All arzi:ra:Orr s n a '.. r Firs:nz sinilif - f 5

experienced in the field which gives-rise

:ne f;Ip. e.

I 6 !;0 perS:n shall De eli9 ble for appcin:cen as a ..ird 1 7 arbitrator who is, or has been, an officer er e=plcyee cf 8 either of the Parties or is otherwise interested in the 9 =atter to be arbitrated. 10 24.4 Except as otherwise provided in this Section 24, 11 the arbitration shall be governed by the rules and practices 12 of the American Arbitration Association (or a similar 13-organization if that Association does not at that time 14 e x is t ). f rom time to time in force; provided, that, if such 15 rules and practices, as modified herein, conflict with the 16 laws of the State of California then in force which are 17 specifically applicable to arbitration proceedings, such i 18 laws shall govern. 19 24.5 Included in the issues which may be submitted 20 l to arbitration pursuant to this Section 24 is the issue i 1 21 of whether the right to arbitrate a particular dispute i I 22 is permitted under an Integration Agreement. 23 l 24.6 The arbitrators shall hear evidence submitted 1 24 I by the Parties and may call for additional in f o rma tio n. 25 Such additional information shall be furnished by the Party i 26 or Parties having such information. The arbitrators shall 5 86- -tr p-sm-e e .e. w-9 -e# -.w-- --,w w--

6 '44h-se g Gut e ev e . e em ) @+ 6h ~ a :..:ri:y :c call f:: af f :icn:1 :nf:r. :

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i r.s v t. r.: or .: :i:f ::.ieruer included in the submittal statemen: r.:.st;e r.: : in:1; fed i . :.. : _:ri--*' 2:1.irin;. award of the arci:ra: Ors shall ::n: sin 5 24.7 Tne to the issues invcived.: ::= d. spa., ~ e dind:ngs w :n respe : the merits.cf-the respective positicns of the 7 including Parties, the materiality of any default.and the remedy 8: 9 l or relief 'which shall be recuired to resolve' the dispute i 10.) Th'e arbitrators may not grant any remedy or relief which L is inconsistent with an Integration Agreement or with any 11 provisions of the Settlement Agreement which are not I 12 The arbitrators ~ 13 superseded by an Integration Agreement. time within which the Party shall 34]shallalsospecifythe 15 comply with the arbitrators' award. In no event shall the award 'of the arbitrators contain findings on issues 16 17. not contained in', or grant a remedy beyond tha t sought in, 18 l the submittal statement.. findings, decision and award of a majority 19 24.8 The of the arbitrators shall be final and binding upon all the 20 21 Parties to the extent permitted by applicable law. If a majority of the arbitrators determine that 22 24,9 the award of the arbitrators shall 23 a def ault exists, contain findings relative to the period within which the l 24 l def aulting Party must remedy the def ault (or com=ence 25 and the remedies which may be exercised 26 remedial action), a-e y-et r* r-4 v yt-m e pas'4 8 F 'W.'S S W*W+9P-"-

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:. v.a. _.>..

5 t=. _____..e e. i Wi nin 15 days following :ne end of any mon:n e; e:.r 7 both' Parties' shall exchange billing information Each Party, 8 within.30 days following the end. of any month, shall sub=it 9 a bill to the other Party for capacity and energy sold, t 10 ! and services rendered, during such month to such other 11l Party. With the exception of transmission services to i 12 bel provided by Edison pursuant to Section 21, payment shall 13 be due - and payable within 25 days following the receipt 14 I of such bill. Payment for transmission services to be 15 provided under said Section 21 shall be due and payable le as provided in the applicable Transmission Service e 17 Agreement. 18-25.2 If charges cannot be determined when billing 11 f information is due because final billing infor=ation is not 20 then available, the best estimate of the Party submitting 21 said bill for such charges shall be the basis for establishing the payments to be made. When final billing 22 23 infermation is available and charges car. be based on such 8 - 24 final billing inf orma tion, billings previously made sha i I 25 ! ce adjusted retroactively, and payment shall be made by l 2s ' e :. t.ner Party, as appropriate, j i l _J , { ,ig. m ygy tv tw - W-- + + + + <g'y s1me e w9-- v-9 ge--he+wy ywg g+ sw w y wfwv yMwy-pg*,y--wrq- -g-vg#- g+4p'Wat9-----WM-o r e a. s wee-e t W-e -i e -wed r+,. e, c-w a + n n < m e 'm w tDre cry 'e m es -P s s 't -- - " ' -

. 2.;;; - "F.* ~m:in: c a, T.e n: in :ne 2 pertoc spe: ..s. l p spaid. Interest LE rr:per2'* addressed w::n ;:s ~

-. unpaid 2 :en: fr:: :ne cnd ::

.:n cer;;d un:.. I wn::n..::n: i: re:s.ved snall.a : rue a-

..e date upc.-

n-t maximur am:un: wn:en is e le percen: pe r c....um, e ' e;a..ly authori:ed, whichever is greater. ~ In the event a Party desires to dispute all 8 25.4 of any bill submitted by the other Piirty, it 9 or any part full amount of the bill when shall nevertheless pay the 10 due and shall give notification in writing within 180 days 11 from the date of the billing stating the grounds for the l 12 The complaining Party 13 dispute and the amount in dispute. shall not be entitled to an adjustment on any bill which is 14 to the attention of the Party submitting such 15 not brought time and in the manner herein specified. 16 bill within the Interest at 10 percent per annum, or that maximum amount ~ 17 which is legally authorized, whichever is greater, shall 18 be added to the adjustment upon settlement of the dispute. 19 20 i26. ME2ERING: Unless otherwise agreed to by the 21 f 26.1 General: 22 ; Parties, Edison shall own, furnish, test, adjust and maintain i 23 l all necessary meters, telemetry and associated equipmen: for billing and f utilized under any Integration Agreement i 24 at its expense, i 25 Integrated Operations. City shall provide, to be a suitable location for all such meters and equipment 26 ? 8. l e 1 1 ,. ~

loca ed en :::per:y wni:.-

:.nz :: ::n::01s.

C.:;

11.

I t 2 ' in :111. :: i t s e:m nre, cur:- -+tgrr and equipment v'i " i tre :::::::: :: ::z :.es:u :e: .. n ::. 2 2 ;: :. 4 Ed:s:n shall install, a its e::p e nri, all such me:t and l i 5: equipment no:~ so a:: ached to City..escurces and C :y I 6 Transmission Facilities. C::y may, at its expense, require 7 duplicate metering, telemetry and associated ecuipment to 8 be provided at any point where metering is utilized under 9 any Integration Agreement for billing and Integrated 10 Operations; provided, that Edison's meters shall be used 11 for the purpose of billing and Integrated Operations. 12 26.2 Billinc Meters: Edison shall read, by telemetry 13 or other means, all meters utilized for billing under any 14 Integration Agreement. City's Authorized Representative 15 or the designee thereof shall be given a reasonable le opportunity by Edison to be present when such readings 17 are made. In the event that a discrepancy arises in 18 metering accuracy between Edison and City's duplicate 19 metering, Edison's metering will be used to determine 20 the billing. 2*' 26.3 Meterine voltage: All deliveries at the 22 Point of Delivery and at the high voltage side of the 23. step-up transform'ers associated with a City Resource shall 24 be metered at the voltages e stablished at such Point of s 25 Delivery or high voltage side of the step-up transformers. 26 All deliveries at a Point of Attachment or a Point of e

h 1r ~h*erConnection shal1, Cy Oetering, 50.ed;1ei 07 C*ner ~ - t

* * ' ', T D e d e t e rm i n e d 3 0 the

'? l * ** *

e f t !bli shed ??

I ~3 . s i:t surn p: n:. By ag cemen: :: u.: ':-ar .:c, .e::;.._....:. 4 a '; te compensated to reflect s uch' e s:ablished vel: ages. 5f 26.4 testine: A11' meters, te eme:ry and asse:ia ed 6 ' equipment owned by Edison shall be inspec:ed, es:ed, or 3 7 adjusted by Edison. City's. Authoriced Representative or 8 designee thereof shall be afforded reasonable opportunity 9.to be present when such meters are inspected, tested, or 10

adjusted.

Testing of meters, telemetry and associated 11 equipment shall be conducted at least once each. year, and 12-at any reasonable time upon request by City. Any meters, 13 telemetry and associated ' equipment found defective or 14 inaccurate shall be repaired and readjusted or replaced. 15 If metering equipment at any time f ails to. register, or if ~ 16-the registration thereof 'is so erratic as to be meaningless, 17 the energy delivered, or its rate of delivery, shall be 18 determined or' estimated from the best information available. 19 conducted herein discloses an error in any If any test 20 billing meter or meters, adjustment of bills for such 21 billing meter error.shall be made in accordance with 22 Section 26.4.1. Such adjustments, when made, shall 23 constitute full settlement cf any claim be: ween the 24 Parties arising out of such meter error. i 25 26.4.1 Adiustment of Bills for Me ter Error: 26 26.4.1.1 Fast or siev Meters:

When,

. l ~

1 .;:n :s::, s..; 16:er :: found :: :s r+;

s:;n;

rs 2 ' than li fast er 11 slow. af ter all transformer and test j

...a:... ....-;.~.: ...~,

s ::rre::sd i:: :he excess over :ne p;_s c: ::nus li E

f:: the ::s: recent 0..e-half of the peri:f ts-se..':hs

: : :.. : :::: :nd ha prce: din: :::,

.:," s : : :: - [ ra :- 7 the provisions of Section 26.4.1.2, and all cillings 8 will be adjusted to reflect the corrected =eter readings. 9 26.4.1.2 General: When it is found 10 that the error in a meter is due to causes, the date of 11 which can be reliab'ly established, meter reading corrections 12 and billing adjustments will be computed back to but not - 13 beyond that date, 14 27. REGULATORY AUTHORITY: 1"* 27.1 Any Integration Agreement other than this 16 shall become effective on the date following Agreement 17 execution by both Parties when accepted for filing by 18 the Commission, but if uper; such filing the co==ission 19 enters upon a hearing to determine whether such Integration 20 Agreement is just and reasonable, it shall not become 21 e f fective until the date when an order no longer subject to judicial review has been issued by the C:mmission 22 23 determining such.Integ rati 'n Ag reement to be just and 24 reasonable without new conditions unacceptable to either 25 Party. 26 27.2 The necessary filing fees for any Integration i pa gw gene. 4We.m ""P w a-eg .g.-y-y,,,w-- y.. ._,.y,

1 1 rae sn: snall s ca d f:: :. l I -. : 2...u- __-w e g:. g r,

. -i-.

t 2 2 n.> . s :s s s i r-. au ncri:a : ..s 1.. rir..;;;:. 4 .s. -i ss, ri-hts cf way, and it:il_:iss ass::it af.. :.- 1 5

7escurces, Transmission Farilit bs and Cc=municati:n i

6 i Equip ent, upon which the Parties agree, i 7 28. UNCONTROLLABLE FORCES: 8 28.1 Neither Party shall be considered to be in 9 default in the performance of any of its obligations under lo any Integration Agreement (other than obligations of said 11 Party to pay costs and expenses) when a failure of 12 performance shall be due to Uncontrollable Forces. A Party 13 rendered unable to fulfill any of its obligations under any Integration Agreement by reaso'n of an Uncontrollable 14 15 Force shall exercise due diligence to remove such inability 16 with all reasonable dispatch. Nothing contained herein 17 shall be construed so as to recuire a Party to settle any 18 strike or labor dispute in which it may be involved. 19 28.2 Each Party reserves the right to temporarily 20 interrupt and curtail service under any Integration 21 Agreemen: (i) upon reasonable advance notice, after 22 consultation with the other Party, to the other Party t= 23 make repairs, replacements or modifications, or to perform 24 maintenance work, all for the curpose of maintaining 25 continuity of service, or (ii) without notice to the other 26 Party if such interruption or curtailment is caused by an E -. m

. '...: : n : :. ; 1 1.. e F;::=.

I;:h :ur:a;.:.en:

: e rela:sf ::

2 Ii clementation of mutual load sheydin: arre-ements agreed I .r.. f 4,... 5.l ^5.1 Ixcep: for any loss, damage, :la:c, ::s, cha: e i =xpense i= salting from Willful Action, n: Party (Firs-o v. 7_ Party), its directors or other governing body, of ficers, 8 or employees shall be liable to the other Party (Second 9 Party) for any loss, damage, claim, cost, charge or expense lo of any kind or nature (including direct, indirect or 11 consequential loss, damage, claim, cost, charge or expense) 12 incurred by the Second Party, resulting (whether or not from ' '13 the negligence of any Party, its directors or other governing 14 body, officers, e6ployees or any other person or entity 15 whose negligence would be imputed to such Party) from: 16 29.1.1 Engineering, repair, supervision, 17 inspection, testing, protection, operation, maintenance, 18 replacement, reconstruction, use or ownership of the Fir 1t 19 Party's system, or 20 29.1.2 The performance or nonperformance of the 21 obligations of any Party under any Integration Agreement. 1 22 29.2 Except for any loss, damage, claim, cost, charge 23' or expense resulting from Willful Action, the Second Party ) 24 releases the First Party, its directors or other governing 1 25 body, officers, and employees, from any such liability l 28 referred to in Section 29.1. d 1 i

'i.2 E>.::;: i;. ..::.1.:. r e :....- f : ;- e ither Per:y whose e!ertrir eurtener shall make a clair er e a

.- :f c;er:rir ser::re :: surr r;r e er snal; :.. d e-.. :

5 ar.f h:ld harmless the :-h=: Par:., ::s dire:::r 6 iGV*; Lins LLLY, Ci;ic=-a a - =: --i==a i' un-1:- n 7 ' any liability for such death, inj ury, loss or damage. 8 The term

electric customer" shall mean any electric i

9l customer, except an electric utility syste= to whom energy 1 10 is delivered for resale. 11 30. TAXES: 12 30.1 The Parties shall use their best ef forts to have 13 any taxing authority imposing any taxes or assessments on 14 property owned or used by the Parties in common, or any 15 interests or rights therein, assess and levy such taxes or 16 assessments directly against the respective ownerships of 17 each Party. 18 30.2 All taxes or assessments which are ascribable 19 to a Party's ownership interest in such property shall be 20 the sole responsibility of the Party as to whose ownership 21 interest said taxes or assessments are levied. 22 30.3 If any property taxes or other taxes or assessments 23 are levied or assessed in a manner other than as specified 24 in Sections 30.1 and 30.2, the Parties shall apportion 25 such taxes and assessments and the payment thereof in 26 accordance with the principles of Section 30.1 and 30.2.

. w.... .. -=.. 2 Efir?" fr* Fr0Farty ownef by a Ci v, then Edison shall ...........~.::..:.~ ' . a. ;. a :. = :..

r. :. :

4 ~anf thereafter Ci:y shill :::: era:s witt Ed :::.. : : 5 contesting suen assessmen: Or let.

f Ef:s:r

.s re Jired 6.ito pay suen property tax, enen as me:ual.; : rce: C :y s..al; 7 l reimburse Edison for the amount of such assessmen: on a 8 basis which.is equitable to both Parties. 9 30.5 The provisiens of this Se: tion 20 shall net be 10 construed so as to avoid taking into account taxes paid by 11 Edison as a cost to Edison of providing services under I 12 any Integration. Agreement. 13 31. NON-DEDICATION OF FACILITIES: An undertaking by either 14, Party to the other Party under any Integration Agreement i 15 shall not constitute the dedication of the system, or any 16 portion thereof, of that Party to the public or to the 17 other Party, nor af fect the status of that Party as an 18 independent system. Any such undertaking shall cease upon 19 the termination of such Integration Agreement. 20 32,. ASSIGNM ENT OF INTERESTS: 1 21 I 32.1 No Party shall have the right : transfer or t 22 assign any of its rights, obligations or interests in, without the prior i 23 l to or under any Integration Agreement 4 24lwrittenconsentoftheotherParty. I 25 32.2 Any successor to the rights, obligations or j 26 interests of a Party in, to and under any Integ ration -

I 1 c.; t e t t r. - :::.. : ::.?.. :nd 17:ss :-

.: n :....

.r...

i i 2 i and discharge all of the Jobligations cf tre assigning F a r : '. z........

:::i:-----

j 4. ::ner.. :::y wr i::en e tid e r.:e O f s;;h -::In:ic: l f 22.2 M: Party shall te rs'.ievef cf a-; cf ::s i 0

i'. ;;. i. :.i and c :

s... Integra: en c;reemen: :y an ass:;nme..: l l thereef, withou: the pri:: 7 l of interest of. all or any part 8 written' consent of the other Party. 9 33. WAIVERS: Any waiver at any time by either Party of 10 its rights with respect to a def ault under any Integration 11 Agreement or with respect to any other matter arising.in 12 ' connection with any Integration Agreement, shall not be 13 deemed a waiver with respect to any subsecuent default or 14 e ther matter arising in connection therewith. Any delay, 15 l short of the statutory period of limitation in asserting 16 or. enforcing any right, shall not be deemed a waiver of' 17 such right. 18 34. P.ELATICMSHIP OF PARTIES: The covenants, obliga:icns 19 and liabilities of the Parties are intended to be several 20 and not joint or collective, and nothing herein con:zined 21 l shall ever be construed to create an association, jcin: 22 trust or partnership, or to impose a trust or

venture, 23 partnership covenant, obligation or liability on or with

'24 regard to either Party. Each Party shall be individually I 1 responsible for its own covenants, ebligations and liabilities 25 26 as herein provided. Neither Party shall be under the control I I. i L

-, - ner yar-, ...:.2: - : 1 de d e s-e4 -re-- -: ..111 re.:he tren-cf :: r.1 c - a r i;'.: : r.:"E - - i' 5-

r.0 : :r.er Far:y w::h::: surn ::ner.::r y's c:::res: w:::::P r': n

.. :, c:::ept as :::ridef in arc

n sprati:r A reert :.

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,..n.

-.--r- , = .,.=.. .eev.5=.c r.e.e..v. c. a her Party, shall give to such cther Far:y a licens:- :: 6 -the : : 7 - licenses to construct, install, opera te, =aintain, replace and repair, upon. the property of the Party providing such 8 .9 license or licenses, such facilities as are necessary or 10 desirable 'for the purpose of any Integration Agree:. tent. Tne 11 license or licenses so given shall be in form and of legal 12 suf ficiency acceptable to the other Party, and shall be and ' 13 remain in ef fect during the term to be fixed in said license j i 14 or licenses. Any facilities so installed by a Party 15 oursuant to said license or licenses shall be and remain the 1 16 property of that Party notwithstanding that the same may I 17 have been affixed to the premises. Such Party shall have a l 18 reasonable time. af ter the expiration of said license or f 19 ' licenses in which to remove such facilities so installed. 20 36. -GOVERNINC LAN: Each Integ ration Ag reement shall be j t 21 interpreted, governed by and construed under the laws of l - 22 the State of California or the laws of the United States ae i 23 - applicable, as if executed and to be perfor=ed wholly wi:hi.- t 24 the State of California. 25 37. CAPTIONS AND HEADINGS: All captions and ne iding e l 5 26 appearing in this Agreeme. : are inserted to faci.;ities t t 96- \\ y ga ~ 3--pg p-.ge- ,-g y 9..,,-w my g Anyeg-4 7ga y,g--g-pg.,gygw, ggn,y3m i-t ,e g g g.-sg ps vg +q g,14g-,-4,g3-9r . g m sy m + r-g 3 g,-Nr-9 e p-e p.gew,,- ws t-i--(,gyg,,w-+1 eat 4' W

'7~: C. * * : -.. ', e?.:.;; ..i~.......:.. ~:...-- 3:v::n a 2 necesfary, the interOretations of the picVisions here:1. a.>. 2!.1 .0::ces :: be given in ::nr.e:.cr r

r.;e;r

n 1.;rsimtnt, i f g iv e..

b; 2ity, shi.1 e si:nci C i, * '... f.. ;;. r i::5 uc pr e se r.ti c a e cf C;:y, and, if civen :y 7 iEfison, shall be signed by the Authori:ed F.epresentative 8 or a corporate officer of Edison. 9 38.2 Notices to Edison shall be suf ficient if delivered 10 in person to the Authori:ed Representative of Edison, or if 11 sent by mail, postage prepaid, to Edison as specified 12 below: 13 Ed ison: 14 Southern California Edison Ccmpany Post Office Box 800 i l 15 Rosemead, California 91770 Attention: (Authorized Representative) 38.3 Notices to City shall be sufficient if delivered 17 " E" * " ' ^ "

E#***

I' 18 i sent by mail, postage prepaid, to City as specified below: gg City: 2o j j City of Anaheim l 2., Post Office Eox 3222 Anaheim, California 92803 i 22 Attention: ( Au thori=ed Representa tive) l 23 38.4 Either Party shall be entitled to specify as its f and 24 proper address any other address in the United States, i 25 different recipients of notices, upon written notice to the i I i 26 cther Party. s

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.J ..J. .. z = 6* .C. OC*..c..e. r.. '; c. c'..r. t r. ^. 2. ". "n r.* ." v* ".. C "s '.. I. ' ". f 5 7i l 8 By /s/ Edward A. P.yers, Jr. Vice Presicen 9 10 A e.e / s / .u.. v. .ve w........ a 11 Assis ant Secre ary 12 1O CITY OF ANAHEIM l'4 t - 75 By /s/ Gordon W. Hey: le U.4.,.4 les D 17 Attest: /s/ Linda D. Rcber s II City Clerk 19 / 20 l 0 2.' 22- / 2 I 24 / 25 26 / I 1.U0-

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5 Pri:r to re:em:er i f ea:h year, Edison shall 6l prese.t :r the Authori:ed Fepresentatives its cudget for i l 7 scheduling and dispa tching expense s, including overhead, 8 for FPC Accounts 556, 561 and 581 for the ensuing year. l 9 The Authorized Representatives shall develop for lo such ensuing year, Edison's monthly charges for scheduling 11 and dispatching City's Resources as follows: 12 1. Each City Resource to be scheduled and dispatched 13 by Edison shall be assigned the appropriate number of 14 5-minute scheduling units recuired to schedule and dispatch 15 that particular Resource. Such time estimate (number of 16 5-minute scheduling units) shall be determined from the 17 attached Table 1 by identifying the type of activity 18 whic. applies to each City Resource. 19 2. The total number of 5-=inute scheduling units 20 [ assigned to all Pesources (including Edison's own Resources) 21 l to be scheduled and dispatched by Edison during that I i i 1' 22 calendar year shall ce divided into the sum of: 23 ! A. 32 percent of the diff erence between (i) the i of money (including money for overhead expenses) f 24 am unt f 25 budgeted by Edison for the Dispatching Section, FPC Accounts [ 26 556, 561, 581, and (ii) pay.cnts estimated to be made by i 5.0 e esw--

2 l \\ t.. e. .w .'. e. . ~.a........ :...... e.. .s s.. m 3. e.. .r v.. 6

p Secticn 2 accve sna11 represent : r.s. :. t r.1,.

rats.- 7. dollars per scheduling unit to be cnarged by Edisen f:: 8I scheduling and dispatching services rendered :: City by l o 1 9lEdisonduring any scnth of that calendar year. The m:nthly 10 I charge to City for such services shall be equal to tne product of such monthly rate and the number of scheduling 11 12 units assigned to City's Integ rated Resources. Monthly charges made by Edison to City shall be 13 4. appropriately adjusted to reflect any purchases or sales 14 15 l of capacity and energy to Edison or Tnird Parties by City IS ' which were not included in the above described monthly 17 cal cul a tions, as prepared annually by the Authorized la Representatives. 19 5. The 32 percent (wnich is deemed to represent 20 the portion of money to be charged to FPC Account !;umcers I 21 l 556, 561 and 5*1 and which is allocated to F?; Acccant l I 22 !! umber 556) and the 100 percent (which is deemed to I 20 represent the portion cf Edison's Pr:du::icn Section f unctio.- l i t expense involved in scheduling and dispatching act iv i tie s ) f 24 g i 25 ;

hsil be reviewed av. the Authorized Re resentatives on 26 or about January 1 of everv vear thereafter and, if t

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t l l i i t l*l t it'l t e i t I TNitI I t (L'1DetitMTION CF !T111111LIttillitTS IER ACtTEHF I On Automatic Generatlott Is t I ey lburs Payback / Control Off-Scin Inller) .t u at t i n L19 l'nergy Calucity Varialile Bankin] Preactwdulinj Syston System lhlt thnitr !'cle-tl ie g I's I Yes tb M) fu R) Yes R1 's in 2 Yes M) 'les tb tb Yes Ib it to in t 3 Yes Yes Ib tt) M) Yes Ib a 10 in 1 6 l 4 Yes My tb ib Yes Rs Yes 4 's in l' Yes tes Yes M3 Yes Mi Yes ', l o v l 6 Yes Yes Yes Ib M) Yes Ib 15 : in 6-i 7 Yes Yes Yes M) R) tt) tb t l '= i n e iji 8 Yeto Yes Yes tb R1 f43 Yes 15 e lei 9 Yes Yes Yes Yes M) Yes Ib 9 Jil win I 10 Yes Yes Yes Yes M) M) Yes I t' 30 i in i 1 t l 98 FIT: the poject may re=1ulte sm>te tien one tyg of actiedulinj. i l B.3 [

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n y ..~.e ar~. es ~.c ~n 5 a::e Cen~ are t..e r c..:... a : ; E, ~:utharn Califernia Edisen Ocm any (Edis:n), a Calift nia l 7 corporation, and the City cf (City), a municipal corporation of the State of California, hereinafter 8 9 referred to collectively as Parties. .10 2. RECITAI S :.This agreement is made with reference to 11 the following facts, among others: 12 2.1 The Parties have entered into the Integrated for the integrated 13 operations Agreement dated opera: ion of their ccmbined electric systems; and 14 15 2.2 City plans to obtain power frem to be delivered for the account of 16 I starting kV Point of Interconnection or 17 the City at the 16, Point'of Attachment between the and Edison i

19. ! electric systems, pursuant to an Interconnected operatiens 2C j Agreement between Edison and such Third Party, at the f

21 ; Substation. L 22 4 2.3 City desires to have the Power obtained frem 1 transmitted from said Pcint of Interconnection,i 2 23 - less trans=ission icsses, to substatien' 2' I or Point of Attachment, I I I (Point of Delivery, Point of Attachment, Point of 25 at t 26 Intercennection) and Edison is willine. to transmit said ocwer t' F t C.0 8 \\

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b. g =.==.*:.i,e.. ..'.J..s ..a. 1. 1 o.. b. ;. b".4... j J / i .J. J... e. g,... J.. b. 6.g. C J. O. b.. g. 4 w-a j Q i 1 and.y _sa..ison, or (2) autnori:ation c*; l c 7 or l 6 regulatory ec= mission (s) having jurisdiction, whichever shall i I I s be-the latest. Edison shall croceed with diligence to obtain I i lo such authori:stion. This agreement shall be for a ceriod l and will continue beyc.nd such date l 11 ending 12 until cancelled bv. either Partv. c.iving no less than 12 months' 15 notice to the other Party. 1,. l .. u3 S.u., S S e ON Sr.R1, Ce s. re 15 5.1 Transmission Service under this agreement shall and shall be provided by Edison 16 commence on forth 17 in accordance with the terms, condizions a..d charges set in the "etwork Transmission Centract Rate TN and the Point-to-16 Transmission Contract Rate TP attached er any superseding. 19 Pcint 20 l rate schedules, i 21 I 5.2 Edison shall acccet deliveries of pcwer at the 2.e.

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c.* .+. =.. c.... e +..4 o.. o.- P,., d... o'. n .a....e.. ..p o a kW (herein l 23 =aximum rate of delivery of i 24 designated as Contract Capacity for a plication to the trans-r 25 mission service rates) and shall deliver an equivalent amounc 26 of power, less transmission Icsses, to the Point designated inj i I i i l 1 C.1 . ) i

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f Transnissien Ser. ice Sca:rac: ?.a t e ::: :: an.. s;:e r s ei:...: ra:e I 6' schefule and shall he sub.ect te modifica:ic '-" r'dsen c.ar-i .7 suant to Section 205 cf the Federal Power Act, and bv. Citv. For calcula-pursuant to.Section 206 of the Federal Power Act. 8 tien of such charges and losses, circuit mileage is hereby 9 l' ' lo agreed te be miles. Charges fer requested connecting - 11 services provided under Special Condition 4 shall be Charges,for new facilities provided under Special Condition 5 12 13 shall be 14 5.4 Charges and transmission losses for Point-te-Point Transmission Service shall be made in accordance with 15 the terms and conditions expressed in the Peint-to-Point 16 Transmission Service Centract Rate TP or any superseding rate 17 18 schedule. The initial charge for service shall be 5 19 per kilowatt of Contract Capacity per year, and the initial 20 transmission losses shall be percent of Centract 21 Cac. acitv. and .cercent of scheduled enere.v deliveries to 22 Edisen, and char.es and Icsses shall be sub.iect to modifica-l 23, tien by Edison pursuant to Section 205 cf the Federal Power j i i f 24 ' Act, and by City pursuan: to Section 206 of the Federal Power 25 Act. Charges f or new f acilities provided under Special 26 Condition 3 shall be C.2 - i k ] .u.* 3 .,,.m.,_._,.__,__,,-,_.,__,_..-

.e.. ..e.b. .. =..,....... ....;...,7y.;. ..-L. ..= .....=. =. e- ..c .......:..........:.... - =..... ,... a, : r. ...=. ".. '...=.....=.' :. ...,... x =. a= s a..

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. '..'.= : ...- = -..=.... .. = - e, I e,r 5.7 .v44s-.n.ese..as he .J..q.b. . o e . a 4.i.. ~ I 8i interrupt er curtail service hereunder (1) upcn reasonable i

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...ax e,. e.a.4 s,. a. c.., a e. e. s c I -4 9i I lo I mcdifications er to perform maintenance work, all for the e I d w.'".*.".'. 4 4. 4., em. 4.. 4'."a c.' sa-".4 a, ( ') ) .....,.,.s ... g l' '..c. 4 c e *. ^ C i ty c.' s " 5 .d..'. a...-...d c.. c.- ~~.~ ~ a d '.. a.... 4 s .".e..= ". s e c.' a.. U...o.. o l l ak ' =. 'c.- e. 5"..5 ".-..=.d.'..e.*. a", "e.-e.'a ed .a l,', ' a. .'..,.' a..e.t.a 4

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e..a... s a c..- a.* #. 3 15 l to between City and Edisen. 1 3 o. t 6. O. n.e R A G R.r e..v.r y. m. e. 17 6.1 Scheduling and dispatching services shall be

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5, Applicable :0_ transnistic. ser e :e :: 6' 500 hern Calif ornia Edison C pany ('.':ili:y i f:: he use by 4' 7 the City of (City) f: tra..smitting City-8 owned power, over Utility's 220,000 vel: transmission 9 facilities from any 220,000 voit substation bus to any c her 10 220,000 volt substation bus designated'by the City, both busses-11 to be owned by Utility and to be loca:ed within the area 12 delineated on the attached map, and when such City-owned power 13 is integrated with Utility's system in accordance with an 14 Integrated Operation Agreement between City and Itility. Per Year 15 Rates 16 For terminal facilities, per kW of Contract Capacity 25.400 17 For transmission facili, ties, 18 er kW of Centract Capacity e 4.370 per circuit-mile 19 For switching facilities, per l 20 kW of Contract Capacity per 1.52c circuit mile 21 22 Seecial Conditions 23 ; 1. Contract Capacity: The Centract capacityunderthisl I 2.- rate will be the capacity re::ested by the City at the beginning of eac.s Contract Period fer which service is 25 2e recuested. Contract Capacity shall not be decreased during 1 D.0 e ,y ve -v, veevy s e ,+w w --- r w wv-w r w my v 'ww -++w* vv r e-wwvm + av m s 'emme w w* m a.e+ we *e *

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7i beycnd the Contract Period until cancelled by City giving I 8I notice of not less than 12 months er by Utility giving notice l si of net less than 12 =cnths. i t e 10 3. Circuit Mileage: Circuit Mileage will be. the 11 circuit mileage along the shortest routewithinthedelineatedl 12 area, from the substation from which pcwer is to be delivered. 13 Mileage will be measured to the nearest 0.1 mile. 14 4. Connection Services: 15 A. The City will be respcnsible for the fellcwing: 16 (1) Arrangements necessary to transmit its 17 pcwer to Utility's 220,000 volt bus from which Network 13 Transmission Service begine. 19 ; (2) Arrangements within the delineated area to 20 i ::ansf crm such power, if necessary, to or frcm 220,000 veits. I (3) Arrangements within the delineated area : 21 l 22 !, . a..s...4 i*.s powa.- #.-...t ..b.e C *..#.'.d * " ' s .. O, 0 0 0 v a..i. bus. ..'.=. \\ l t 23 City's system. i 24 B. The arranc.ements rec.nired under Sub carac.ra:hs I 25 4.A. (1), (2) and (3) abcve shall be prcvided by Utili v. under ;. 26lScheduleTP, if applicable, and, if Schedule TP is net I, l =% Y.. I i

k 2"OliOiDie r.ny, by affe8.".en~ Of ne 21!!162, si 7!"J.I.tI I, 1 ~; _ill.; :.

h:rges afeguate t: fully : - r. rata '*tili:

fer _t-if _.; ft::.1.::.ss, if, :.n 1 ::._:.:;. I ; .w O Ep 10 i t*' 15'**,*12.1Ehle in eXis.ing facilities. n., _ _t

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( c.e. e.__.. _ _ a _ _--.. __a .=..._~.**,.?.*. n a. .~. s*.. l terminal, transmission and switching f acil.:ies wi. :.n :ne-c delineated area which are required to be built by Utility :: 7 I provide service under this rate in advance of Utility's other 8 9 needs as a result of a request for transmission service, wi'.1 I, 10 be the. subject of special charges adequate to fully ecmpensa e ' Utility for the investment and costs associated with such 11 f acilities during the period they are not required for '12 13 Utility's other needs. 14 6. Losses: Losses shall be calculated at the following 15 rates which are based on average system losses: 16 A. For capacity, per kW of Conuract 0.023% Capacity per circuit mile 17 B. For energy, per kWh per circuit 0.023% 18 mile Such losses will be deducted by Utility frem the quantities 19 20 delivered to it for transmission to Citv. 21 7. Centracts: Utility shall, within 30 days from the date when City applies in writing for service under this 22 23 schedule, state if new facilities are required under the pre- 'if 24 visions of Special Condition 5. If no new f acilities are 25 required, service will ccamence upon date requested by City, l 26 but not less than 60 days after the date of said application. t 1 D.2 .' ~ \\ . ~.. -

. = 4 2-i14 ime aya re,: ired, s e r.* i c e W; 1 0 0..~". E..0 : 0.~ + 2,.. t m: ..c s. . %. u.

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3 . h. a. b a.., ..J**....'%: . b. e. .s- . a. e ginning of each Contract. Period f or which service is requested.' 7 a Centract Capacity shall not be decreased during any Centract 9 Period. Each separate power resource obtained by the-Cicy l 10 shall be treated as an individual block of Contract Capacity 11 for a-specified Contract Period. 12 2. Contract Period: A Contract Period shall be any. 13 multiple of 12 months following ec=mencement of service for 14 each block of pcwer to be transmitted. Service shall centinue 15 beycnd'the Contract Period until cancelled by City giving 16 notice of not less than 12 months or by Utility c.ivin~w notice 17 of not less than 12 months. 18 3. New Facilities: Recenstructicn of existing tecninal, 19 transmission and switching f acilities which is required to i 20 ' provide service under this rate in advance of Utility's other ~ 21 needs as a result of a reques ~~ansmission service, will 22 i be the subject of special charges adequate te fully ecmpensate r l 23 l Utility fer the investment and costs associaced with such 24 l recenst ::tica during the peried it is not required for 25 Utility's ether needs. Utility shall have no obligation to i 20 provide any facilities outside of its certificated service 3 4 8

2,, e 2. .cy ::.: ::_:i_uay :: :: 5,:_:.. - i, s. ......__,_..__as__.,,,,...:. .L .l o __,_a_ ,,..;_,_=_.: _ _,. _ _. _. _ ,,_S. he usef for such - trins.:.s s :n str*..:e.- ,..issi:.; paths deemed :: such *. esses will be deft::ed f cm the quant:.::.es de* :.vered :: 1 e ) Utility for'transmissien'ro Citv. 7 Utility shall, within 30. days from the

5.

Contract: s-date when City applies in writing for se:vice under this rate, l 9 state.if new' f acilities are required under the provisions of - lo Id no new f acilities are required, 11 Special condition 3. service will commence not less than 60 days after the date of 12 Where new facilities are required, service said application. 13 will ccmmence on the later of the date requested by City or a 14 date determined by the Utility's construction schedule of the 15 new facilities to be installed by the Utility. 16 The annual charges for service 17 6. Payment of Charges: in each year of the Centract Period shall be due at the 18 1/12 of the beginning of each such year and payable menchly at 19 20 annual charges. 21 7. Rules of Service: This rate is subject to the Rules of Utility on file with the Federal Fewer Cc=.ission, as they f 22 23 ; may be modified frem time to time. 24 25 i 26 e f r Ze1 O I l ' Wyr'rve'v-w90'-tw"ry're--- WWg yM -Prv e-TTear-gw i gW r eg--g o-g w-whg. gre-eg3= 9. sgysum-g yg gpq 9,es.W'OT't$'IP'e**W4% 'tM

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6., e. >, e -a>. .' u.n e ", 15 i Mr. Gordon W. Hoyt Utilities Director City of Anaheim Post ~ Office Sox 3222 Anaheim, California 92803

Dear Mr. Hoyt:

On May 3, 1978, Mr. Robert L. Myers, of the Southern (Edison), wrote to you and California Edison CompanyPublic Utilities Director of the City Mr. Everett C.

Ross, advising of Edison's discovery of Riverside (Riverside),

of a typographical error in Section 15.1.6 of the - Integrated Operations Agreements entered into between The purpose Edison and Riverside and Edison and Anaheim.is to amend the Integrat of this letter agreementbetween Edison and Anaheim to correct Operations Agreement that error. the second Accordingly, it is hereby agreed that Integrated Operations sentence of Section 15.1.6 of the executed on between Edison and Anaheim,is hereby at: ended to read in its Agreement November 29, 1977, entirety as follows: i rate design of the "However, changes in the li-then-effective Partial Requirements Race appbecome effective u cable to City shall notthey have been determined by final orde the Commission, no lencer subject to judicial (i) 2 and reasonable, or (ii) review, to be just for filing such years after the Tender Oatefirst." whichever occurs

changas, f

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Ci C ~J '*:t. Hay: 2crid~Ent Ui t.k trs -:::cg;;.r.; Ly Elekse ir.diO ;i ;' ; '; r ilc456 Signing OniS lettdr 1r 0. 5 E0306 ind10306d Oz.;. ...;; !:3 ??"" for our file.

.13 return coa Very trcly yours,

SOUTHERN CALI*ORNIA EDISON CCMP13 l p[_- A By Vice Presicent / j /f / .0.. C;.$ tWs httest , /' Tc: %tw!T AGREED TO: CITY OF ANAHEIM ) By / Utilities Director ~ /. > .@ -* M Attest s s a Iwi J.2.2. /97f Date f e e =}}

ML20126K018

Contents

Text

5.2 Acreement

Attachment:

Dear Mr. Hoyt:

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ML20126K018

Text

5.2 Acreement

Attachment:

Dear Mr. Hoyt:

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