02-26-2018 BPU RPT 10 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIESDATE: FEBRUARY 26, 2018 ITEM NO:10 AMENDMENT TO THEINTERCONNECTION FACILITIES AGREEMENT SUBJECT:SECOND BETWEEN SOUTHERNCALIFORNIA EDISON COMPANY AND THE CITY OF RIVERSIDE INCREASING PAYMENT TO SOUTHERN CALIFORNIA EDISON TO CONTINUE WORK ON THE RIVERSIDE TRANSMISSION RELIABILITY PROJECT- WORK ORDER NO. 642975, FOR$1,500,000 ISSUES: Approve the expenditureincrease of $1,500,000for Work Order 642975;and,recommend that the City Council approve the SecondAmendment to the Interconnection Facilities Agreement between Southern California Edison Company and the City of Riversidefor Southern California Edison to continue work on the Riverside Transmission Reliability Project-Work Order No. 642975, for $1,500,000. RECOMMENDATIONS: That the Board of Public Utilities: 1.Approve the expenditure of $1,500,000for Work Order 642975; 2.Recommend that the City Council approve the SecondAmendment to the Interconnection Facilities Agreement between Southern California Edison Company and the City of Riverside revising the cost and payment schedule and increasing the amount of the agreement by $1,500,000;and, 3.Recommend that the City Council authorize the City Manager, or his designee, to execute the Second Amendment to the Interconnection Facilities Agreementincluding making minor non- substantive changes, and to sign all documents necessary to complete the transaction for filing with the Federal Energy Regulatory Commissionby Southern California Edison Company. BACKGROUND: The Board of Public Utilities (Board) approved the Riverside Transmission Reliability Project (RTRP)in January 2006 following Riverside Public Utilities’ (RPU) application for the service in November 2004 and Southern California Edison Company’s (SCE)System Impact Studyand Facilities Studyin June and October 2005. It is a joint project with SCE to provide Riverside a second connection to the state electric transmission gridaddressingthe capacity and reliability needs of the City. SCE’s participation and cost recovery is subject to California Independent System Operator (CAISO) and California Public Utility Commission(CPUC) approvals. CAISO approved the project in September 2006. The CPUC approval process is ongoing. SCE is also subject to its Transmission Owner Tariff rulesand Federal Energy Regulatory Commission (FERC)approvals,including FERC approval of interconnection facilities agreementsbetween SCE and applicants. The interconnection facilities agreement between RPU and SCE sets the forth terms and conditions for SCE to work on RTRP. Page 61