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For Quality of Life
AGENDA ITEM
TO: Honorable Mayor and City Council
FROM: Joseph F. Hsu, Director of Utilities 7-- h---
VIA:
"VIA: Rick Cole, City Manager g_e.-
DATE:
September 2, 1998
SUBJECT: Azusa's Scheduling Coordinator Application
BACKGROUND:
The electricity industry in California became deregulated as of April 1 of this year. As
part of the deregulation process, two independent entities have been created to manage
the deregulation process, namely the Independent System Operator(ISO) and the Power
Exchange (PX).
The ISO performs the scheduling of electric power/transmission within California and
maintains the reliability of California electric system, and the PX establishes a market for
electricity trading. In order to conduct businesses with the ISO and the PX, entities are
required to be certified both technically and financially by the ISO and the PX. In
Azusa's case, interactions with the ISO is unavoidable and mandatory since Azusa
resides within the ISO's control area, whereas interaction with the PX is voluntary since
Azusa may elect not to conduct businesses directly with the PX.
Since April 1 until now, Southern California Edison Company (SCE) has served as
Azusa's conduit to interact with both the ISO and the PX. SCE agreed to serve this role
for a limited period of time, namely six months, as part of the 1998 Azusa-Edison
Settlement Agreement that the City entered into in late 1997. During the past four and a
half months, staff has familiarized with the operational requirements to interact with the
ISO through SCE, and feels confident that now is the appropriate time for the City to
seek an official status with the ISO to interface with the ISO directly.
The attached Scheduling Coordinator Application will initiate the process of Azusa's
becoming a certified entity to do businesses with the ISO.
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729 N. Azusa Avenue P.O. Box 9500 Azusa, California 91702
626/812-5208 (phone) 626/334-3163 (fax) utilitiescazusa.ca.gov (e-mail)
FISCAL IMPACT:
The application to become a certified Scheduling Coordinator requires a non-refundable
application fee of five hundred dollars, and once Azusa is approved to become
Scheduling Coordinator Azusa is required to prepay an equivalent of four-month
financial obligations to the ISO, currently estimated to be $300,000, a one-time
prepayment. Funds have been budgeted in the Light Fund to pay these costs.
RECOMMENDATION:
Staff recommend the City Council authorize the staff to initiate the Scheduling
Coordinator application process with the ISO, and take all necessary actions to ensure the
timely certification by the ISO.
Prepared by: Bob Tang, Manager of Integrated Resource Planning
ISO Tariff
• Original Sheet No. 537
The information provided for this application will be treated as confidential information
SCAP APPENDIX A
SCHEDULING COORDINATOR APPLICATION FORM
This application is for approval as a Scheduling Coordinator ("SC") by the
California Independent System Operator Corporation ("ISO") in accordance with
the ISO Tariff.
I. Administrative Requirements
SC Applicant's Legal Name:
City of Azusa, California
Address of principal place of business:
729 North Azusa Ave., P.O. Box 9500, Azusa, CA 91702
Authorized Representative:
Joseph F. Hsu, Director of Utilities
Address: 729 North Azusa Ave., P.O. Box 9500, Azusa, CA 91702
Phone: (626) 812-5219
Fax: (626) 334-3163
E-mail:
Type of entity: Municipal Utility
(Municipal utility, power marketer, investor owned utility, federal or state entity or
other)
State of Incorporation or Partnership: State of California
Proposed commencement date for service: October 1, 1998
Posted December 23, 1997
ISO Tariff
Original Sheet No. 538
II. SC Customer Information
A. The information required under Appendix C, the ISO Application File
Template, must be provided for represented SC Metered Entities which
are Generators. The SC Applicant must submit all requested information
prior to final certification which must occur fourteen (14) days before the
commencement of service.
[Note: For 1997 applications there will be an exception. All SCs will
be required to submit all requested information by December 1 in
order to participate in the ISO's operational dry run during the
second week of December. Due to its extremely large input, the PX
will input its data throughout November 1997.]
B. Information for SC Metered Entities which are End Users or Eligible
Customers must be kept in a standard business format based on
generally accepted accounting principals. The ISO shall have the right to
inspect and audit a Scheduling Coordinator's accounts and files relating
to its SC Metered Entities after giving two business days notice in writing.
C. The SC Applicant must submit a list of all ISO Metered Entities which it
will represent.
III. Security Requirement
3.1 The SC Applicant has an Approved Credit Rating as set forth in the ISO
Tariff: (yes/no).
The SC Applicant's credit rating is
Please attach certified documentation of an Approved Credit Rating from
Standard & Poor's, Moody's Investors Services or the equivalent. SC
Applicant must also submit, before final certification, an executed letter of
understanding for payment providing contact details in case of default.
OR
3.2 The SC Applicant will provide an irrevocable and unconditional guarantee
from a company which has an Approved Credit Rating: (yes/no).
The SC Applicant must submit a signed irrevocable and unconditional
guarantee in an ISO approved form and certified documentation of the
other company's Approved Credit Rating before final certification. OR
3.3 The SC Applicant will provide an irrevocable and unconditional letter of
credit: (yes/ no).
Amount: $
The SC Applicant must submit a signed irrevocable and unconditional
letter of credit in an ISO approved form before final certification. OR
Posted December 23, 1997
ISO Tariff
Original Sheet No. 539
3.4 The SC Applicant will provide a cash deposit: (yes /no). Yes
Amount: $300,000. The SC Applicant must enter into an escrow
agreement in an ISO approved form before final certification. AND
3.5 The SC Applicant must provide its bank account information before final
certification. The SC Applicant's bank must be capable of performing
Fed-Wire System transfers.
IV. Technical Requirements
4.1 Does the SC Applicant have the computer hardware, software and
communication capabilities for interface compatibility with the ISO system
for data transmission, for electronic data interchange (EDI) and for Fed-
Wire System transfer accounts: (yes/no) If no, please submit a
proposed completion date to be fully operational so that an ISO staff site
visit can be arranged.
Since the City of Azusa will enter into a scheduling agent agreement
with the City of Riverside, whereby City of Riverside will provide the
scheduling and the services of interfacing with the Cal-ISO on
Azusa's behalf, the City of Azusa intends to utilize the existing
communication capabilities and infrastructures that City of
Riverside currently possesses to interface with the Cal-ISO.
4.2 For Loads and Generating Units located within the ISO Controlled Grid,
does the SC Applicant have any scheduling restrictions imposed by the
parties they represent? (yes/no) If yes, provide full details on a
separate sheet of paper.
No.
4.3 Does the SC Applicant have adequate staffing to operate a SC's
operational facility twenty-four(24) hours a day for 365 days a year: (yes
/ no). If no, please submit a proposed completion date to be fully
operational so that an ISO staff site visit can be arranged.
As outlined in 4.1, the City of Riverside will be Azusa's twenty-four
(24) hour scheduling agent for the purpose of interfacing with the
Cal-ISO.
V. Third Party Contractual Requirements
5.1 The SC Applicant confirms that all of its SC Customers which are located
within the ISO Controlled Grid and which should execute agreements with
the ISO have entered into or will enter into, prior to the certification of the
SC Applicant, all required agreements with the ISO to enable them to
meet the requirements of the ISO Tariff: (yes/no).
N/A. Azusa will be its own Scheduling Coordinator
Posted December 23, 1997
ISO Tariff
Original Sheet No. 540
(a) Represented Generators have signed participating generator
agreements: (yes / no).
N/A. Azusa does not own any generation within the Cal-ISO
Controlled Grid.
(b) Represented UDCs have signed UDC Operating Agreements
and meter service agreements: (yes / no).
It is unclear whether Azusa needs to execute an UDC Agreement.
If it is required, Azusa will enter into an UDC Agreement under
mutually agreed upon terms and conditions.
(c) Represented ISO Metered Entities have signed meter service
agreements: (yes / no).
N/A.
(d) Wholesale Customers it will represent have warranted to the
SC Applicant that they are eligible for wholesale
transmission service pursuant to the provisions of the FPA
Section 212(h): (yes / no).
Yes.
(e) Each End-Use Customer it will represent which requests
Direct Access service has warranted to the SC Applicant
that the End-Use Customer is eligible for such service: (yes /
no).
N/A.
(f) Represented Existing Operating Entities have entered into
Existing Operating Agreements with the ISO. (yes / no).
N/A.
5.2 The SC Applicant confirms that all of the parties which it represents as
SC Customers have granted it all necessary agency authority, whether
actual, implied or inherent, to enable the SC to perform all of its
obligations under the ISO Tariff: (yes/no).
N/A. Azusa will act as its own SC.
Posted December 23, 1997
ISO Tariff
Original Sheet No. 541
5.3 Notwithstanding 5.2, the SC confirms that it will have the primary
responsibility, as the principal, for all SC payment obligations under the
ISO Tariff: (yes/ no).
Yes.
VI. Additional Information and Obligations
6.1 The SC Applicant agrees to provide such further information to the ISO as
the ISO may deem necessary to process the application and certify the
SC Applicant as a SC now and on a continuing basis.
6.2 Subject to the ISO Tariff, the SC Applicant agrees to promptly report to
the ISO within three (3) business days or earlier any changes regarding
the information provided by it referred to in the SCAP and in the
application.
6.3 The SC Applicant agrees to enclose herein the non-refundable
application fee to cover the application processing costs, site visit and
costs of providing ISO Tariff.
Please make check payable to:
The California Independent System Operator Corporation
6.4 SC Applicant agrees to promptly execute and return the SC Agreement,
meter service agreements, interim black start agreements, software
licensing agreement, letter of understanding, letter of credit, guarantee,
escrow agreement, as applicable, and Fed-Wire System bank account
number, after receiving its application approval letter from the ISO.
6.5 Final certification is contingent upon SC Applicant fulfilling all financial
and technical requirements as referenced in the SCAP (including
Appendix C, the ISO Application File Template).
Posted December 23, 1997
ISO Tariff
Original Sheet No. 542
SC Applicant certifies by its signature on this Application Form that:
(1) all information it is submitting is correct and accurate; and that
(2) the SC Applicant has read and agrees to be bound by the ISO Tariff as
may be in force or amended from time to time.
Name of Organization:
City of Azusa
SC Applicant's Name (please print):
Joseph F. Hsu
SC Applicant's Title:
Director of Utilities
SC Applicant's Signature:
State of California }
ss
County of Los Angeles }
[SEAL]
Sworn and subscribed
before me this day of
,19
Notary's Signature:
Please send application and required information to:
California Independent System Operator Corporation
do Schedule Coordinator Application Processing Office
151 Blue Ravine Road,
Folsom, CA 95630
Posted December 23, 1997
ISO Tariff
Original Sheet No. 543
SCAP APPENDIX B
Procedures for Changes or Additions to
Scheduling Coordinator's (SC's) Information
The SC must update, amend and /or correct the information originally submitted
to the ISO during the SC application process using the format set forth in this
Appendix and /or a revised Appendix C, the ISO Application File Template. The
SC must submit all changes or additional information by first class postage paid
mail to:
California Independent System Operator Corporation
c/o SC Application Processing Office
151 Blue Ravine Road
Folsom, CA 95630
The SC must notify the ISO of any change to the information that it has
previously submitted to the ISO, or any additional information, at least three
business days before the change will take effect.
The ISO will send a written acknowledgment of receipt of the SC's changes
within three business days of receipt. The receipt shall be sent to the address on
file with the ISO or the address specified in the notice of change received by the
ISO.
Prior Information
N/A. This is an initial application.
New Information
N/A. This is an initial application.
Explanation and Reason for Change
N/A. This is an initial application.
Posted December 23, 1997
•
ISO Tariff
Original Sheet No. 544
SCAP APPENDIX C
ISO APPLICATION FILE TEMPLATE
The ISO Application File Template is an Excel template used to load resources into the
ISO's database. There is also a customer help file created to work with a Microsoft
Access Database which are used together to gather application information.
Posted December 23, 1997