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Letter Agreement for SCE Vista Metering • Page 2 BACKGROUND: The City of Riverside's distribution system is primarily served through two 230/69kV transformers at the Vista Substation, which is owned and operated by SCE. The Vista substation is also City's only point of interconnection to the state grid, where the City transacts with the California Independent System Operator (CAISO) for wholesale power. There are Seven-69kV transmission lines that transmit power from SCE's Vista Substation into Riverside. Each of the seven lines is individually metered at Vista Substation for billing and operational purposes. The total amount of power, in terms of both megawatt hours and coincidental electrical demand, is determined through metering pulse totalizers located at the Vista Substation Riverside Public Utilties (RPU) requires revenue -quality meter data from the Vista Substation for reporting to the California Independent System Operator (CAISO). The Vista Substation is the point of interconnection between RPU and the CAISO controlled grid. RPU has a total of seven (7) CAISO Certified Revenue Quality Meters located at the Vista Substation. The CAISO relies on the quality of these meters to correctly bill RPU on the load consumed from the CAISO grid. As a CAISO Metered Entity, RPU is required to provide the CAISO with Revenue Quality Meter Data in accordance with Section 10 of the CAISO Tariff and Section 5 of the Metering Business Practice Manual. RPU is also required to maintain the CAISO metering facilities as well as repair defective equipment to continue to meet the standards prescribed in the CAISO Tariff and Business Practice Manuals. If a CAISO Metered Entity is unable to provide the CAISO with complete and accurate meter data, the entity will be subject to penalties and sanctions as specified in the CAISO Tariff Section 37.11 and Section 4 of the Metering Business Practice Manual. On July 21, 2017, the metering pulse totalizer on the 69kV lines at Vista Substation that serve Riverside Public Utilities ("RPU") failed. SCE met with RPU representatives to determine the scope of work, costs, and project schedule to replace the pulse totalizer unit. Since accurate metering at the Vista Substation is paramount to RPU's operation, staff agreed to pay SCE to perform the pulse totalizer replacement work in advance of this Engineering, Design and Construction Letter Agreement ("Letter Agreement") with SCE. On August 19, 2017, SCE determined that a metering unit on the Mountain View -Vista 69 kV line at Vista Substation's 69 kV position 2 failed. SCE has determined that the existing three phase 69 kV metering unit must be replaced with a new set of three single-phase combined metering units. The seven original metering units were installed in the 1960's and have exceeded their expected design life. RPU has requested that SCE replace the failed metering unit. In addition, RPU has requested that SCE purchase and store one replacement metering set to be used in the event of a future failure. SCE and RPU personnel have met and agreed on the specific scope of work for the replacement of the pulse totalizer, replacement of the failed metering unit, and the acquisition of spare metering units. This scope is designated as the "Vista Work" and is further described in Exhibit A in the attached Letter Agreement.