06-04-10 BPU RPT 07 - Laserfiche WebLink

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W A T E R I E N E R 5 Y , L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: June 4, 2010 ITEM NO: 7 SUBJECT: AMENDED AND RESTATED TRANSMISSION SERVICE AGREEMENTS BETWEEN CITY OF RIVERSIDE AND LOS ANGELES DEPARTMENT OF WATER AND POWER ISSUE: Board approval is requested for two amended and restated transmission service agreements between the City of Riverside and the Los Angeles Department of Water and Power ("LADWP"). RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Amended and Restated Intermountain Power Project (IPP) Base Capacity Transmission Service Agreement; 2. Approve the Amended and Restated IPP Additional Capacity Transmission Service Agreement; and 3. Authorize the City Manager, or his designee, to execute the agreements, including any minor, non-substantive changes. BACKGROUND: As part of Riverside Public Utilities' ("RPU") participation in the Intermountain Power Project ("IPP"), RPU also obtained participation in the Southern Transmission System ("STS"), which is a high voltage interstate transmission line extending between IPP and LADWP's Adelanto Substation ("Adelanto"). To move RPU's power from the Adelanto end of the STS to the California Independent System Operator's ("CAISO") system, where RPU resides, RPU and LADWP entered into the following transmission service agreements in 1986: (1) The IPP Base Capacity Transmission Service Agreement ("Base TSA"), and (2) The IPP Additional Capacity Transmission Service Agreement ("Additional TSA"). Together, these two agreements provide the connecting link between RPU's STS share and the CAISO system. LADWP is currently upgrading the STS, thus allowing more power to be imported from the Rocky Mountain region into California. The upgrade is scheduled to be completed in late 2010 and will also increase RPU's STS share. The increase in RPU's STS share will require a commensurate increase in the total amount of transmission service provided under the Base TSA and the Additional TSA.