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Interconnection Facilities Agreement 3-9-09

Riverside City Council
May 14, 2024

Document
Interconnection Facilities Agreement 3-9-09
Meeting
May 14, 2024
Body
Riverside City Council
Original file
31.2 MB
Text extracted from the city's file for reading and search. Open the original on riversideca.legistar1.com. That file is the official record.

Southern California Edison Company
FERC Electric Tariff, Second Revised Volume No. (,
Service Agreement No. 59
09030901.00
Substitute Title Page

INTERCONNECTION FACILITIES AGREEMENT
BET\VEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY
Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Calilimlia Edison Company
FERC Elc\;tric Tariff. Second Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No. 1 INTERCONNECTION FACILITIES AGREEMENT BET\VEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY

TABLE OF CONTENTS
I.

2. 3.

4. 5.

6. 7.

8. 9.

10. II.

12. 13.

14. 15.

16. 17.

18. 19.

20. 21.

22. 23.

24. 25.

26. 27.

28. 29.

30. 31.

Parties: 3
Recitals: 3
Agreelnent 4
Definitions: 4
Effective Date And Tenn: 7
Agreement Pursuant To The TO Tariff: 8
Creditworthiness: : 8
Interconnection Principles: 9
Interconnected Operations: 13
Metering: 17
Capital Additions: 17
Removal Of SCE Interconnection Facilities: 18
Sale of Land: 18
Charges: 19
Billing And Payment 23
Disputes: 28
Audits: 28
Authorized Representatives: 29
Regulatory Authority: 30
No Dedication Of Facilities: 31
No Third Party Rights: 31
Assignments: , 3 1
Relationship Of Parties: 32
Waivers: 32
Governing Law: 32
Notices: 32
Severability: 33
Confidentiality: 33
Entire Agreement 36
Amendment: 37
Ambiguities: 37
Signature Clause: 38
Issued by: James A. Cuillier
Director ofFERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tarin', Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No.2 INTERCONNECTION FACILITIES AGREEMENT BET\VEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY
TABLE OF CONTENTS (CONT.)
Exhibit A.

Exhibit B.

Exhibit C.

Exhibit D.

Exhibit E.

Facilities Description: 39
Facilities Cost: 42
Engineering and Construction Payment Schedule: .43
Wildlife Substation One-Line Diagram: .45
Riverside Wilderness Substation One-Line Diagram: .46
Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Ele~tric Tarifr. St.:cond Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No.3 INTERCONNECTION FACILITIES AGREEMENT BET\VEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY
I. Parties:

The Parties to this Interconnection Facilities Ah'Teementare the City of Riverside, ("Riverside"), a California municipal corporation, and Southern California Edison Company ("SCE"), a California corporation, hereinafter sometimes referred to individually as "Party" and collectively as "Parties."

2. Recitals:

This Agreement is made with reference to the following stipulated facts, among others:

2.1. SCE is a California public utility engaged in the business of generating and transmitting electric energy in the States of Arizona, California, Nevada, and New Mexico. SCE is further engaged in the business of distributing such energy in the State of California.

2.2. Riverside is a California municipal corporation currently engaged in generating and transmitting electric energy in the States of Arizona, California, Utah, and Nevada.

2.3. Riverside proposes to construct a new 220/66 kV Riverside Wilderness Substation, remove approximately 280 MW of existing load currently connected to SCE's Vista Substation, reconnect such load to the new Riverside Wilderness Substation, and serve such load and future Riverside load at Riverside Wilderness Substation for a maximum capacity of 560 MW.

2.4. On December 20, 2004, Riverside submitted a request to SCE to interconnect its proposed new Riverside Wilderness Substation to SCE's electrical system at a new 220 kV SCE Wildlife Substation to be constructed by SCE, and requested that SCE loop the Mira Loma-Vista No. 1 220 kV Transmission Line into SCE's Wildlife Substation, in accordance with the terms ofSCE's Transmission Owner Tariff ("TO Tariff'). Such interconnection request was received by SCE on December 27,2004.

2.5. SCE performed a System Impact Study associated with Riverside's proposed 220 kV interconnection, and the results were transmitted to Riverside on June 18,2005.

2.6. A Facilities Study identifYing the SCE Interconnection Facilities and upgrades to SCE's electrical system needed to provide the requested service was performed by SCE, and the results were transmitted to Riverside on October 4, Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southem Califomia Edison Company
FERC Ekclric Tariff. Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No.4 2005. The Facilities Study did not identitY a need for system up!:,'Tadesbeyond those upgrades identified herein.

2.7. The Parties entered into a Letter Agreement on April 11, 2006, which provided the tenns and conditions for SCE to begin the engineering, design and preparation of specifications for the SeE Interconnection Facilities, perfonn studies regarding requirements for right-of-way for Wildlife Substation and the approximately 8.25 miles of double circuit transmission line required for the interconnection with SCE's existing Vista and Mira Lorna Substations, commence preparation of the Certificate of Public Convenience and Necessity ("CPCN") application and perfonn other work as necessary. The Letter Agreement also provides for Riverside to pay all of SCE's charges and expenses incurred for work perfonned by SCE pursuant to the Letter Agreement, and includes the Parties' intent that any successor agreement include tenns whereby SCE shall reimburse Riverside for any costs incurred for any required network transmission facilities, if and to the extent that the FERC grants SCE rate recovery for such costs. The Letter Agreement provides that it will tenninate upon the effective date of an interconnection agreement.

2.8. The Parties desire to enter into this Agreement to specify the tenns for SCE to provide Interconnection service; and for SCE to (i) engineer, design, construct, install, own, operate and maintain Wildlife Substation; (ii) engineer, design, construct, install, own, operate and maintain the Mira Lorna-Vista 220 kV Line Loop into Wildlife Substation; (iii) interconnect the 220/66 kV Riverside Wilderness Substation to Wildlife Substation; (iv) purchase from Riverside the land required for Wildlife Substation; and (v) reimburse Riverside for certain amounts paid to SCE pursuant to the Letter Agreement and this Agreement. In addition, this Agreement provides for Riverside to sell to SCE the land required for Wildlife Substation.

3. Agreement:

In consideration of the premises and the mutual covenants and agreements contained herein, the Parties agree as follows:

4. Definitions:

All tenns with initial capitalization not otherwise defined herein shall have the meanings assigned to them in the TO Tariff, as that tariff may be amended from time to time. The following terms, when used herein with initial capitalization, whether in the singular or the plural, shall have the meanings specified:

4.1. Accounting Practice: Generally accepted accounting principles and practices applicable to electric utility operations.

4.2. Agreement: This Interconnection Facilities Agreement between the City of Riverside and Southern California Edison Company.

4.3. Authorized Representative: The representative of a Party designated in Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southem Calitomia Edison Company
FERC Electric Tarin: Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No.5 accordance with Section 18.

4.4. Capital Additions: Any Units of Property which are added to the SCE Interconnection Facilities, the enlargement, modification or betterment of any Units of Property constituting a part of the SCE Interconnection Facilities; or the replacement of any Units of Property constituting a part of the SCE Interconnection Facilities, irrespective of whether such replacement constitutes an enlargement, modification or betterment of that which it replaces; the costs of which additions, enlargements, modifications, betterments or replacements in accordance with Accounting Practice would be capitalized and have not previously been included in the SCE Interconnection Facilities Cost.

4.5. Capital Additions Cost: All costs, excluding One-Time Cost, associated with the design, engineering, procurement, construction and installation of Capital Additions.

4.6. Capital Additions Payment: The sum of the Capital Additions Cost and associated One-Time Cost.

4.7. Credit Support: Parent guarantee, letter of credit, surety bond, or other security meeting the r,equirements of Section 14.9.

4.8. CPUC: The California Public Utilities Commission, or its regulatory successor.

4.9. Customer-Financed Monthly Rate: The rate most recently adopted by the CPUC for application to SCE's retail electric customers for customer-financed added facilities, which does not compensate SCE for replacement of added facilities. The currently effective Customer-Financed Monthly Rate is stated in Exhibit B.

4.10. Emergency Condition: A condition or situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (2) that, in the case of SCE, is imminently likely (as determined in a non­ discriminatory manner) to cause a material adverse effect on the security of, or damage to, SCE's electric system, the SCE Interconnection Facilities, or the electric systems of others to which SCE's transmission system is directly connected; or (3) that, in the case of Riverside, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to, the Riverside electric system or the Riverside Interconnection Facilities. System restoration and Black Start shall be considered Emergency Conditions.

4.11. FERC: Federal Energy Regulatory Commission, or its regulatory successor.

4.12. Governmental Authority: Any federal, state, local or other governmental, regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include either of the Parties Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

S~)uthcm Calil\)mia Edison Company
fERC Electric Tarin: Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No.6 to this Agreement, or any affiliate thereof.

4.13. Interconnection: The interconnection of the Riverside Interconnection Facilities to SCE's electrical system, to be established in accordance with Section 8 and as shown in Exhibits D and E.

4.14. Interconnection Facilities: The SCE Interconnection Facilities or the Riverside Interconnection Facilities or both as the context may require.

4.15. ISO Controlled Facilities: Facilities, as specified in Exhibit A and as shown in Exhibit D, owned by SCE, and placed under the Operational Control of the ISO, as such facilities may be modified during the term of this Agreement.

4.16. ITCC: The Income Tax Component of Contribution specified in the Preliminary Statement, Part M ofSCE's tariff on file with the CPUC, to the extent applicable to payments and transfers by Riverside to SCE for SCE Interconnection Facilities Cost and the Capital Additions Cost. The ITCC tax gross-up amount will be computed pursuant to Section 14.8.1, and the estimate of the ITCC is provided in Section 14.9.2.

4.17. Letter Agreement: That agreement described in Section 2.7 and entered into between the Parties on April 11, 2006.

4.18. Mira Loma-Vista 220 kV Line Loop: Facilities, which are part of the ISO Controlled Facilities as specified in Exhibit A and as shown in Exhibit D, owned by SCE, including, but not limited to the approximately 8.25 miles of new transmission line looping SCE's Mira Loma-Vista No.1 220 kV Transmission Line into Wildlife Substation, thereby creating the Mira Loma­ Wildlife and Vista-Wildlife 220 kV Transmission Lines, as such facilities may be modified during the term of this Agreement.

4.19. NERC: The North American Electric Reliability Corporation, or its successor.

4.20. One-Time Cost: All costs associated with the installation of SCE Interconnection Facilities and Capital Additions which are not capitalized. The SCE Interconnection Facilities One-Time Cost is provided in Exhibit B.

4.21. Point of Interconnection: The point where the 220 kV transmission lines from the Riverside Wilderness Substation interconnect with SCE's Wildlife Substation. Such Point of Interconnection is described in Sections 8.3 and 8.4 and shown in Exhibit D.

4.22. Removal Cost: The actual cost SCE incurs for the removal of the SCE Interconnection Facilities, which is calculated as the amount, if positive, of the costs of removal minus the salvage value of the SCE Interconnection Facilities.

4.23. Riverside Interconnection Facilities: All equipment and facilities comprising the Riverside Interconnection Facilities, as shown in Exhibit E, owned by Riverside to interconnect the Riverside Wilderness Substation to SCE's electrical system at Wildlife Substation, as such facilities may be modified during the term of this Agreement.

4.24. Riverside Wilderness Substation: Riverside's 220/66 kV electrical substation located adjacent to Wildlife Substation, and as shown in Exhibit E, owned by Riverside, as such facilities may be modified during the term of this Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tariff, Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 7 A.bJfeement.

4.25. Riverside Wilderness Substation In-Service Date: The date upon which the construction of the Riverside Wilderness Substation is complete, such facilities are successfully tested, synchronized and connected to SCE's Wildlife Substation.

4.26. SCE Interconnection Facilities: All equipment and facilities comprising the SCE Interconnection Facilities, as specified in Exhibit A and shown in Exhibit 0, not placed under ISO Operational Control, owned by SCE to interconnect the Riverside Wilderness Substation to SCE's electrical system at Wildlife Substation, as such facilities may be modified during the tenn of this Agreement.

4.27. SCE Interconnection Facilities Charge: The monthly charge to Riverside to recover the revenue requirements, including, but not limited to, operation, maintenance, administrative and general expenses, for the SCE Interconnection Facilities, calculated as the product of the Customer-Financed Monthly Rate and the SCE Interconnection Facilities Cost. An estimate of the SCE Interconnection Facilities Charge is provided in Exhibit B.

4.28. SCE Interconnection Facilities Cost: All costs, excluding One-Time Cost, associated with the design, engineering, procurement, construction and installation of the SCE Interconnection Facilities. An estimate of the SCE Interconnection Facilities Cost is provided in Exhibit B.

4.29. SCE Interconnection Facilities Payment: The sum of the SCE Interconnection Facilities Cost and associated One-Time Cost. The SCE Interconnection Facilities Payment is provided in Exhibit B.

4.30. Units of Property: As described in FERC's "List of Units of Property for Use in Connection with Unifonn System of Accounts Prescribed for Public Utilities and Licensees" in effect as of the date of this Agreement, and as such list may be amended from time to time.

4.31. WECC: The Western Electricity Coordinating Councilor its successor.

4.32. Wildlife Substation: SCE's 220 kV electrical substation located adjacent to the Riverside Wilderness Substation, including, but not limited to, the SCE Interconnection Facilities, and ISO Controlled Facilities within the Wildlife Substation, as shown in Exhibit 0, as such facilities may be modified during the tenn of this Agreement.

4.33. Wildlife Substation In-Service Date: The date upon which the construction of the Wildlife Substation is complete and such facilities are successfully tested and ready for service.

5. Effective Date And Term:

5.1. This Agreement shall become effective upon the effective date ordered by the FERC ("Effective Date").

5.2. Unless this Agreement is tenninated pursuant to Section 13.2, 14.7 or 15.4, this Agreement shall tenninate on the earliest of (i) the date specified by Riverside Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Calitornia Edison Company
FERC Electric Tarife Second Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No.8 upon one hundred eighty (180) calendar days advance written notice to SCE if the notice oftennination is received by SCE on or after the Wildlife Substation In-Service Date, or (ii) the date specified by Riverside upon thirty (30) calendar days written notice to SCE if the notice oftennination is received by SCE before the Wildlife Substation In-Service Date.

5.3. Any obligations of one Party to the other, including payment obligations, as a result of this A!:,Jfeement,which accrued prior to or as a result oftennination of this Agreement, shall survive tennination.

5.4. If Riverside has given notice oftennination and a filing with FERC is required to tenninate this Agreement, Riverside shall support the request for such tennination before the FERC if requested to do so by SCE.

5.5. Following tennination of this Agreement, Riverside shall pay SCE any remaining balance owed for SCE's costs incurred or irrevocably committed to be incurred as of the tennination date (and subsequently paid by SCE) pursuant to this Agreement for the SCE Interconnection Facilities in accordance with Section 15.1.12. If this Agreement is tenninated before the Wildlife Substation In-Service Date, Riverside shall also pay SCE for SCE's costs incurred or irrevocably committed to be incurred as of the tennination date (and subsequently paid by SCE) for the ISO Controlled Facilities in accordance with Section 15.1.12.

5.6. Upon the Effective Date, this Agreement shall supersede the Letter Agreement, and the Letter Agreement shall be of no further force or effect.

6. Agreement Pursuant To The TO Tariff:

This Agreement governs services pursuant to the TO Tariff as such Tariff may be amended from time to time. Accordingly, the rights and obligations of the Parties pursuant to this Agreement are subject to applicable provisions of the TO Tariff, including without limitation its provisions regarding indemnification and Uncontrollable Force, in addition to the provisions of this Agreement. In case ofa conflict in the tenns contained in this Agreement and the tenns in the TO Tariff, the tenns of this Agreement shall apply.

7. Creditworthiness:

For the purpose of detennining the ability of Riverside to meet its obligations related to service hereunder, SCE may require reasonable credit review procedures. This review shall be made in accordance with standard commercial practices. In addition, SCE may require Riverside to provide and maintain in effect during the tenn of the Agreement, an unconditional and irrevocable letter of credit as security to meet its responsibilities and obligations under the Agreement, or an alternative fonn of security proposed by SCE and acceptable to Riverside and consistent with commercial practices established by the Unifonn Commercial Code that protects SCE against the risk of non-payment. SCE will detennine on a non-discriminatory basis Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Calit()rnia Edison Company
FERC Electric Tarin: Second Revised Volume NO.6
Service Agreement No. 59 Substitute Original Sheet No.9 whether security will be required since Riverside has previously established its creditworthiness pursuant to a taritf, rate schedule, or service contract for service provided by SCE, and has not defaulted on its obligation under that applicable tariff or rate schedule.

8. Interconnection Principles:

8.1. SCE shall design, engineer, procure, construct, install, own, operate and maintain Wildlife Substation and the Mira Loma-Vista 220 kV Line Loop pursuant to Good Utility Practice and apply for any regulatory approvals associated with these facilities.

8.2. SCE shall own and maintain the towers, poles, dead-end structures, primary conductors (other than the conductors owned by Riverside pursuant to Section

8.3), insulators, and conductor support attachments within SCE's Wildlife Substation.

8.3. Riverside shall provide at Riverside's expense and Riverside shall own the conductors necessary to interconnect the Riverside Interconnection Facilities to SCE's Wildlife Substation up to but not including the jumper loops on the first dead-end structure within the SCE Wildlife Substation.

8.4. SCE shall install on SCE's poles, towers or dead-end structures, the Riverside provided and owned conductors necessary to interconnect the Riverside Interconnection Facilities to SCE's Wildlife Substation.

8.5. Riverside, at its expense, shall engineer, design, procure, construct, install, own, operate and maintain the Riverside Wilderness Substation, 220/66 kV power transfonners, meters and metering facilities, and relay protection associated with the Riverside Wilderness Substation, and the 66 kV distribution system connected to the Riverside Wilderness Substation pursuant to Good Utility Practice and apply for any regulatory approvals associated with these facilities.

8.6. Riverside, at its expense, shall remove approximately 280 MW of existing load currently connected to SCE's Vista Substation and reconnect such load to the Riverside Wilderness Substation.

8.7. The Parties shall establish the Interconnection between the Riverside Wilderness Substation and Wildlife Substation (i) by utilizing the Riverside Interconnection Facilities and the SCE Interconnection Facilities, as shown in Exhibits D and E, as those exhibits may be modified in accordance with this Agreement, and (ii) in accordance with all applicable ISO, WECC and NERC criteria, SCE specifications, and Good Utility Practice.

8.8. Riverside shall acquire all pennits and other approvals in addition to completing all environmental impact studies necessary for the construction, operation, and maintenance of the Riverside Wilderness Substation. Riverside shall include Wildlife Substation and the Mira Loma-Vista 220 kV Line Loop in all such environmental impact studies. Riverside will act as the lead California Environmental Quality Act ("CEQA") agency for the electric system Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Soulhem C'alilomia Edison Company
FERC Ele\;lrk Tariff. Sc\;ond Revised Vl)lume No.6
Service Agreement No. 59 Substitute Original Sheet No. 10 up6'Tadcsspecitied in this Agreement, including the Riverside Wilderness Substation, Wildlife Substation, and the Mira Loma-Vista 220 kV Line Loop, in order to perfonn the necessary environmental review as required by CEQA.

Riverside shall provide the results of such studies and approvals to SCE for use in SCE's application(s) to obtain any required regulatory approvals for the construction of SCE's facilities, including a CPCN from the CPUC. The Parties will provide infonnation and assistance to one another as reasonably requested by the other Party in obtaining the necessary permits and regulatory approvals.

8.9. At SCE's request, Riverside shall provide to SCE electrical specifications, relevant drawings and plans pertaining to the Riverside Wilderness Substation and any portion of Riverside's distribution system which may potentially have an impact on the SCE transmission and distribution system, as reasonably determined by SCE, for SCE's review prior to beginning construction work based on such specifications, drawings and plans. Riverside shall provide to SCE reasonable advance written notice of any changes in the Riverside Wilderness Substation and provide to SCE specifications, relevant drawings and plans of any such changes for SCE's review and consent. Such consent shall not be unreasonably withheld. The Parties shall coordinate modifications to such specifications, relevant drawings and plans as necessary to allow SCE to operate its electric system in accordance with Good Utility Practice and NERC and WECC approved reliability standards.

8.10. At Riverside's request, SCE shall provide to Riverside electrical specifications, relevant drawings and plans pertaining to the Wildlife Substation and any portion of SCE's transmission system which may potentially have an impact on the Riverside distribution system for Riverside's review prior to beginning construction work based on such specifications, drawings and plans. SCE shall provide to Riverside reasonable advance written notice of any changes in the SCE Wildlife Substation and provide to Riverside specifications, relevant drawings and plans of any such changes for Riverside's review and consent.

Such consent shall not be unreasonably withheld. The Parties shall coordinate modifications to such specifications, relevant drawings and plans as necessary to allow Riverside to operate its electrical system in accordance with Good Utility Practice and NERC and WECC approved reliability standards.

8.11. The Parties agree to review and consult with each other regarding the construction schedules for the Riverside Wilderness Substation and, as described in Section 2.3, the relocation of a portion of Riverside's load currently served by SCE's Vista Substation to the Riverside Wilderness Substation, Wildlife Substation and the Mira Lorna-Vista 220 kV Line Loop.

8.12. SCE shall have the right to inspect the Riverside Wilderness Substation and Riverside shall have the right to inspect the Wildlife Substation prior to the initial operation of each respective substation, upon advance notice. Each Party shall have the right, at such Party's option, to be present at the inspection Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Stluthcrn CaliliJmia Edison Company
rERC Electric Tariff, Second Revised Volume No.6
Service Agrcem-:nt No. 59 Substitute Original Shed No. 11 of the other Party.

8.13. Riverside shall grant SCE easements tor the life of the Wildlife Substation on property owned or controlled by Riverside as necessary to route the Mira Lorna - Vista 220 kV Line Loop tor interconnection providing for appropriate space and access rights for installation, operation, maintenance, replacement and removal ofSCE required facilities at fair market value of the land as detennined by a licensed appraiser. SCE and Riverside shall make all arrangements necessary to effectuate such easements. The appraiser will be mutually ahTfeed upon by SCE and Riverside. If SCE requires easements on land not owned or controlled by Riverside, Riverside shall make all commercially reasonable efforts to assist SCE in acquiring such easements.

8.14. SCE shall use commercially reasonable efforts to construct, successfully test and declare ready for service Wildlife Substation and the Mira Lorna-Vista 220 kV Line Loop on or before forty (40) months from the Effective Date.

However, Riverside understands and acknowledges that such date is only an estimate, produced without benefit of a design, and that final scope, equipment and material lead times, labor availability, outage coordination, regulatory approvals, or other unforeseen events could delay the actual in-service date beyond that specified. The Parties agree to cooperate with each other to evaluate actions that may be taken by the Parties to potentially advance the in­ service date of the Wildlife Substation and the Mira Lorna-Vista 220 kV Line Loop.

8.15. Riverside shall use commercially reasonable efforts to construct, successfully test and declare ready for service the Riverside Wilderness Substation on or before forty (40) months from the Effective Date. However, SCE understands and acknowledges that such date is only an estimate, produced without benefit of a design, and that final scope, equipment and material lead times, labor availability, outage coordination, regulatory approvals, or other untoreseen events could delay the actual in-service date beyond that specified. The Parties agree to cooperate with each other to evaluate actions that may be taken by the Parties to potentially advance the in-service date of the Wilderness Substation.

8.16. The maximum capacity of the SCE Interconnection Facilities made available by SCE to Riverside for the purpose of the interconnection of the Riverside Wilderness Substation to the ISO Controlled Grid under this Agreement shall be 560 MW. Riverside acknowledges that if Riverside wishes to increase the amount of Interconnection capacity provided pursuant to this Agreement, Riverside shall be required to provide advance notice to SCE of such proposed increase, so that SCE may study the impact to SCE's electrical system and design and install system additions or upgrades as required to accommodate such increase.

8.17. The Parties have negotiated operating procedures which, among other things, (I) established procedures to communicate and coordinate operations, (2) established emergency operations, switching and clearance procedures between Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tariff. Second Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No. 12 the Parties associated with the Riverside Wilderness Substation and the SCE Wildlife Substation, and (3) established operating procedures associated with 66 kV load rolling between Vista Substation and Riverside Wilderness Substation. Changes to the operating procedures shall be made by mutual agreement of the Parties; provided that, if either Party proposes a change to an operating procedure with which the other Party does not agree, the disagreement shall be resolved through the dispute resolution process under Section 16. SCE shall provide to the ISO any operating procedures created pursuant to this Abrreementthat reasonably may be expected to affect the ISO Controlled Grid and shall coordinate with the ISO and Riverside regarding any changes to such operating procedures. If the ISO directs a change to such operating procedures to comply with Applicable Reliability Criteria, the Parties shall implement and abide by the change directed by the ISO subject to their exercise of any rights of denial, review or appeal under the ISO Tariff or NERC/WECC Reliability Standards. Notwithstanding the above sentence, if a Party reasonably determines that such change will negatively impact safety or reliability of its electrical system, such change will not be implemented until the ISO's dispute resolution process has been exercised.

8.18. Either Party may undertake modifications to its facilities. If a Party plans to undertake a modification that reasonably may be expected to affect the other Party's facilities, including addition of ties to other utilities and generation additions, that Party, (or the ISO pursuant to ISO tariff requirements as appropriate), will provide to the other Party sufficient information regarding such modification so that the other Party may evaluate the potential impact of such modification prior to commencement of the work. Such information shall be deemed to be Confidential Information (as defined in Section 28) hereunder and shall include information concerning the timing of such modifications and whether such modifications are expected to interrupt the flow of electricity to or from the Party's respective substation. The Party desiring to perform such work shall provide the relevant drawings, plans, and specifications to the other Party at least ninety (90) calendar days in advance of the commencement of the work or such shorter period upon which the Parties may agree, which agreement shall not unreasonably be withheld, conditioned or delayed.

8.19. The costs associated with any mitigation measures required to third party transmission systems resulting from the interconnection of the Riverside Wilderness Substation to SCE's electrical system are not reflected in this Agreement. Nothing in this Agreement shall impose on SCE or Riverside any responsibility to pay costs associated with any measures to mitigate impacts to third party electrical systems resulting from the interconnection of the Riverside Wilderness Substation to SCE's electrical system. .

8.20. Except for its willful misconduct, its negligence, or with respect to its breach of this Agreement, or as otherwise specifically set forth herein, SCE, its directors, members of its governing board, officers, employees and/or agents shall not be lssued by: James A. Cuillier
Director of FERC Rates & Regulation
lssued on: Effective:

S\luthem California Edison Company
FERC Electric Tarin: Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 13 liable to Riverside for any loss, damage, claim, cost. charge or expense arising from or related to this Agreement.

9. Interconnected Operations:

9.1. SCE shall, at its expense, operate and maintain the ISO Controlled Facilities in accordance with the applicable Transmission Control Agreement provisions, WECC and NERC reliability criteria, established SCE operating and maintenance procedures and Good Utility Practice as they may change from time to time.

9.1. SCE shall operate and maintain the SCE Interconnection Facilities in accordance with the applicable Transmission Control Agreement provisions, WECC and NERC reliability criteria, established SCE operating and maintenance procedures and Good Utility Practice as they may change from time to time, and Riverside shall pay SCE to perform such operation and maintenance of the SCE Interconnection Facilities, pursuant to Section 14.

9.3. Riverside shall, at its expense, operate and maintain the Riverside Wilderness Substation in accordance with the applicable ISO Tariff provisions and protocols, TO Tariff provisions, WECC and NERC reliability criteria, jointly established operating procedures, established Riverside operating procedures and Good Utility Practice as they may change from time to time.

9.4. Riverside shall comply with all Applicable Reliability Criteria for the Riverside Interconnection Facilities and Riverside Wildlife Substation. SCE shall have no responsibility for complying with mandatory reliability standards for such facilities.

9.5. SCE shall comply with all Applicable Reliability Criteria for the SCE Interconnection Facilities, Wildlife Substation and the Mira Loma-Vista 220 kV Line Loop.

9.6. Riverside shall maintain reactive flow at grid interface points within a specified power factor band of 0.97 lag to 0.99 lead, or as otherwise established by the ISO. Riverside shall not be compensated for the service of maintaining the power factor at required levels within the bandwidth.

9.7. The Riverside Wilderness Substation shall be operated so as to prevent or protect against the following adverse conditions on SCE's electric system:
inadvertent and unwanted re-energizing of the SCE Interconnection Facilities; interconnection while out of synchronization; overcurrent; voltage imbalance; ground faults; generated alternating current frequency outside permitted safe limits; poor power factor or reactive power outside permitted limits; and abnormal waveforms.

9.8. The SCE Interconnection Facilities shall be operated so as to prevent the following adverse conditions on Riverside's electric system: inadvertent and unwanted re-energizing of the Riverside Interconnection Facilities, interconnection while out of synchronization; overcurrent; voltage imbalance; ground faults; generated alternating current frequency outside permitted safe Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Calitornia Edison Company
FERC Eb:tric Tariff. Second Rt:vised Volume No. 0
Servict: Agreement No. 59 Suhstitute Original Sheet No. 14 limits; poor power factor or reactive power outside pcnnitted limits; and abnonnal wavefonns.

9.9. The Riverside Interconnection Facilities shall nonnally be operated with all of the Riverside Interconnection Facilities protective relaying systems in service whenever such Riverside Interconnection Facilities are connected to, or are operated in parallel with, Wildlife Substation. If such Riverside Interconnection Facilities contain redundant protective relaying, such redundant protective relaying may be disconnected from operation as long as adequate relay protection remains in-service and serves an identical purpose. Any other deviation for brief periods of emergency or maintenance shall only be by agreement of the Authorized Representatives, each Party's designated switching center or operations center as identified in the operating procedure or as may be directed by the ISO.

9.10. The SCE Interconnection Facilities shall nonnally be operated with all of the SCE Interconnection Facilities protective relaying systems in service whenever such SCE Interconnection Facilities are connected to, or are operated in parallel with, the Riverside Wilderness Substation. If such SCE Interconnection Facilities contain redundant protective relaying, such redundant protective relaying may be disconnected from operation as long as adequate relay protection remains in-service and serves an identical purpose. Any other deviation for brief periods of emergency or maintenance shall only be by agreement of the Authorized Representatives, each Party's desi!:,'11ated switching center or operations center as identified in the operating procedure or as may be directed by the ISO.

9. I I. Each Party shall maintain operating communications with the other Party's designated switching or operations center. The operating communications shall include, but not be limited to, system parallel operation or separation, scheduled and unscheduled outages, equipment clearances, protective relay operations, and levels of operating voltage and reactive power.

9.12. Riverside shall not commence initial parallel operation of the Riverside Interconnection Facilities with the SCE Interconnection Facilities, and SCE shall not commence initial parallel operation of the SCE Interconnection Facilities with the Riverside Interconnection Facilities until written approval for the initial parallel operation of the Riverside Wilderness Substation with SCE's Wildlife Substation has been given by SCE and Riverside, which approval shall not be unreasonably withheld.

9.13. Following outages of the SCE Interconnection Facilities or the Riverside Interconnection Facilities, neither Party shall energize their respective Interconnection Facilities for any reason without specific concurrence from the other Party's operations center. Such pennission shall not be unreasonably withheld.

9. I4. Riverside shall provide to SCE by September I, of each year, such infonnation concerning Riverside's electric system as is required for SCE to comply with Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

South~m Califomia Edi~on Company
FERC Eledric Tarin: Sewnd Revised Volume No.6
Servic~ Agreement No. 59 Substitute Original Sheet No. IS the bulk power system modeling requirements of the WECC. Riverside shall comply with the rules, regulations, procedures and guidelines of the WECC working group known as the Modeling and Validation Working Group, and its assignees or successors, to assure full compliance with all system modeling requirements of the WECC. If Riverside's distribution system is not part of the system modeling requirements of the WECC, then by September I, of each year. Riverside shall provide SCE with updated system modeling of Riverside's distribution system.

9.15. After the Riverside Wilderness Substation In-Service Date. Riverside shall not cause the Riverside Wilderness Substation or Riverside's distribution system connected to Riverside's Wilderness Substation to operate in parallel with or to interconnect to:
(i) Riverside's distribution system served under other TO Tariff or Wholesale Distribution Access Tariff interconnection facilities agreements or service agreements,
(ii) other SCE facilities, or
(iii) any facilities served by other electric utilities without prior review and consent from SCE, or unless such parallel operation is established pursuant to the operating procedures established pursuant to Section 8.17. Consent shall not be unreasonably withheld or delayed. Interconnection and operation of additional generating facilities within Riverside's service territory shall be subject to Section 9. 16.

9.16. After the Riverside Wilderness Substation In-Service Date, the parties agree to abide by the processes, protocols, and agreements promulgated by FERC in Order No. 2003 1 and Order No. 2006.2 Additionally, Riverside shall provide to SCE by September 1 of each year a forecast of planned generation capacity additions to Riverside's electric system for each of the following three (3) calendar years. SCE shall provide to Riverside by September 1 of each year a forecast of planned generation capacity additions to SCE's Eastern Division for each of the following three (3) calendar years.

9.17. Each Party shall provide the other with at least fourteen (14) calendar days written notice prior to the initial and subsequent testing of their respective Interconnection Facilities protective relaying systems. Such protective relaying systems shall be tested at intervals not to exceed four (4) years. Each Party shall have the right to have a representative present at the initial and subsequent I Standardhltion o/Generator Interconnection Agreements and Procedures, Order No. 2003.

FERC Stats. & Regs. 31,146 (2003), order on reh 'g, Order No. 2003-A, FERC Stats. & Regs. ~31, 160, order on reh 'g, Order No. 2003-8, FERC Stats. & Regs. ~31, 171 (2004), order on reh'g. Order No. 2003­ C, FERC Stats. & Regs. ~31,190 (2005), ajfd sub nom. Nat'l Ass'n o/Regulatory Uti!. Comm'rs v. FERC, 475 F.3d 1277 (D.C. Cir 2007) (collectively, Order No. 2003). 2 Standardhltion o/Small Generator Interconnection Agreements and Procedures, Order No. 2006, FERC Stats. & Regs. ~31,180, order on reh'g, Order No. 2006-A, FERC Stats. & Regs. ~31,196 (2005), order granting clarification, Order No. 2006-8, FERC Stats. & Regs. ~31,221 (2006) (collectively, Order No. 2006).

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Calilornia Edison Company
FERC Electric Tarin: Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 16 testing of the other Party's Interconnection Facilities protective relaying systems and to receive copies of the test results.

9.18. Each Party may require the other Party to demonstrate to such Party's satisfaction the correct calibration and operation of the respective Party's Interconnection Facilities protective relaying systems at any time a Party has reason to believe that such protective relaying systems may impair the Party's electric system integrity.

9.19. The Parties shall cooperate with one another in scheduling maintenance to the SCE Interconnection Facilities, the Riverside Interconnection Facilities, and the Mira Loma-Vista 220 kV Line Loop, or in taking any component of such facilities out of service, provided that in an Emergency Condition either Party may take any component(s), excluding relay protection, of such facilities out of service without notice to the other Party. The Parties shall use commercially reasonable efforts to avoid performing regularly scheduled maintenance during system peak conditions, or during instances when scheduled maintenance to or forced outages of other system equipment may adversely impact SCE or Riverside's system reliability.

9.20. Each Party shall provide advance notice to the other Party, by January I, May I, and September I of each year, of the estimated scheduled maintenance for its respective Interconnection Facilities, and the Mira Loma-Vista 220 kV Line Loop for the succeeding four months.

9.21. Riverside shall provide to SCE by September 1 of each year an update of Riverside's load forecast for the Interconnection for the following five (5) calendar years.

9.22. This Agreement governs the Interconnection of the Riverside Wilderness Substation to SCE's electrical system pursuant to the TO Tariff and as described herein. Riverside shall be responsible for making all necessary operational arrangements with the ISO, including, without limitation, arrangements for obtaining transmission service to or from the ISO Controlled Grid, and for scheduling delivery of energy and other services to or from the ISO Controlled Grid for delivery to or from the Riverside Wilderness Substation.

9.23. Consistent with Good Utility Practice, WECC and NERC Reliability Standards, and the operating procedure, either Party may take actions or inactions with regard to its Interconnection Facilities or any portion of its electric system during an Emergency Condition in order to (i) preserve public health and safety, (ii) preserve the reliability of such Party's electric system, (iii) limit or prevent damage, and (iv) expedite restoration of service. The Party taking such actions or inactions to address an Emergency Condition shall use reasonable efforts to minimize the effect of such actions or inactions on the Interconnection Facilities and/or electric system of the other Party, and the Parties shall use reasonable efforts to assist each other in addressing Emergency Conditions. When possible, the Party taking actions or inactions to Issued by: James A. Cuillier
Director ofFERC Rates & Regulation
Issued on: Effective:

SOllthern CalitiJmia Edison Ct>mpany
FERC Electric fariff. Second Revised Volume No. (,
Service Agreement No. 59 Substitute Original Sheet No. 17 address an Emcrgenl:YCondition shall provide advance notice to the other Party if such actions or inactions reasonably may be expected to affect such other Party's electric system. When it is not possible to provide advance notice, the Party taking actions or inactions to address an Emergency Condition shall notify the other Party as soon as practicable.

10. Metering:

10.1. The ISO meters shall be located on Riverside's side of the Point Of Interconnection.

10.1. Riverside shall be responsible for the installation, maintenance and certification of ISO quality metering for the Riverside Wilderness Substation in accordance with applicable ISO Tariff provisions and metering requirements.

10.3. Riverside shall own all ISO metering infrastructure associated with the Riverside Wilderness Substation and be responsible for all costs of such infrastructure including, without limitation, testing and certification of ISO metering.

10.4. Riverside shall be responsible for obtaining ISO approval for the installation of ISO metering at the Riverside Wilderness Substation prior to operation.

10.5. Riverside shall be responsible for any loss correction factor applicable to Riverside's metering in accordance with applicable ISO Tariff provisions and metering requirements.

10.6. SCE may, at its discretion, electronically access Riverside's ISO metering to monitor real and reactive power flows related to the Interconnection. Riverside shall include, through its Metered Subsystem Agreement with the ISO or other form of a!:,Tfeementacceptable to the ISO and Riverside, express written authorization for SCE to access information available from Riverside's ISO metering for purposes of such monitoring.

10.7. Notwithstanding Section 10.6, Riverside shall make available to SCE, real time dynamic status, output MW, MVAR of any new generating units to SCE's Grid Control Center for which the ISO requires real-time telemetry data. Riverside shall make available Riverside Interconnection Facilities circuit breaker status, output MW, MVAR, alarms and indication to SCE and SCE will make available 220 kV status of SCE's Interconnection Facilities to Riverside.

II. Capital Additions:

11.1. SCE shall engineer, design, procure, construct, install, own, operate and maintain all Capital Additions pursuant to Good Utility Practice.

11.2. Except as otherwise provided in Section 11.3, whenever Capital Additions are required pursuant to Good Utility Practice (which may include compliance with system or regulatory requirements), Riverside shall pay all charges associated with such Capital Additions in accordance with Section IS.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Caliti.mlia Edison Company
FERC Electric Tarin: Second Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No. 18

11.3. In the event that Capital Additions are required in order to benefit SCE, because of damage caused by negligence or willful misconduct of SCE, to interconnect a third party to SCE's electrical system, or to provide transmission service to a third party under any SCE Tariff, Riverside shall not bear cost responsibility for such Capital Additions. No adjustment will be made to the SCE Interconnection Facilities Cost or Interconnection Facilities Charge, and no Capital Additions Cost or One-Time Cost will be charged to Riverside for such Capital Additions.

12. Removal Of SeE Interconnection Facilities:

12.1. Following tennination of this Agreement, SCE will remove the SCE Interconnection Facilities from service to Riverside.

12.2. On or before the date one year following tennination of this Agreement, SCE shall notify Riverside whether SCE intends to physically remove the SCE Interconnection Facilities or any part thereof. If SCE intends to physically remove the SCE Interconnection Facilities or any part thereof, then SCE shall physically remove such facilities within two (2) years from the date of notification of intent, and Riverside shall pay the Removal Cost in accordance with Sections 14.1 and 15.2. If SCE does not intend to physically remove the SCE Interconnection Facilities or any part thereof, then Riverside shall have no obligation to pay such Removal Cost.

13. Sale of Land:

13.1. SCE will purchase the land associated with Wildlife Substation that is currently owned by Riverside and Riverside shall sell to SCE the land required for Wildlife Substation that it owns as detennined during design to be necessary in connection with initial operation of Wildlife Substation to provide for appropriate space and access rights for future getaway requirements, installation, operation, maintenance, replacement and removal of SCE required facilities, including, but not limited to, facilities required for station light and power and other required SCE facilities, in connection with the initial design of Wildlife Substation as shown in Exhibit D, at a price equal to the fair market value of the land as detennined by a licensed appraiser. The appraiser will be mutually agreed upon by SCE and Riverside.

13.2. Such property sale shall occur prior to SCE's commencement of construction of Wildlife Substation. If such property sale does not occur prior to SCE's readiness to commence construction of Wildlife Substation, SCE shall have the right to tenninate this Agreement subject to FERC acceptance and approval. However, if Riverside requests, and SCE, in its sole discretion, agrees, SCE shall have the option to commence construction of Wildlife Substation prior to property sale. Notwithstanding anything else Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tarin', Second Revised Volume No. (,
Service Agreement No. 59 Substitute Original Sheet No. 19 in this Agreement, SCE shall have no obligation to energize Wildlife Suhstation until such property sale has occurred.

14. Charges:

14.1. Riverside shall pay to SCE the following charges in accordance with this Agreement: (a) the cost ofthe ISO Controlled Facilities pursuant to Section

14.4, (b) SCE Interconnection Facilities Payment; (c) SCE Interconnection Facilities Charge; (d) Capital Additions Payment; (e) any reimbursable FERC tees pursuant to Section 19.2; (f) Removal Cost; (g) termination charges pursuant to Section 5.5.

14.2. All costs incurred hereunder shall be accounted for in accordance with Accounting Practice, including but not limited to, the cost of the ISO Controlled Facilities, SCE Interconnection Facilities Cost, Capital Additions Cost, One-Time Cost and Removal Cost.

14.3. Nothing in this Agreement shall impose on SCE any responsibility to pay any costs associated with the design, permitting and construction ofthe Riverside Wilderness Substation.

14.4. Subject to reimbursement pursuant to Section 14.5, Riverside shall be responsible for the payment of all costs incurred by SCE for engineering and design activities, right-of-way studies, environmental support, permitting, and other support activities reasonably determined to be necessary for the construction of Wildlite Substation and the Mira Lorna-Vista 220 kV Line Loop, prior to the ISO's Board approval of the ISO Controlled Facilities and the CPUC's approval of SCE's CPCN application to be filed in relation to this project.

14.4.1. Riverside shall pay to SCE the estimated costs of performing such work in accordance with the payment schedule provided in Exhibit C.

Riverside's payments to SCE under the terms of the Letter Agreement shall be credited to the cost incurred by SCE under the terms of this Agreement.

14.4.2. Upon ISO Board Approval of the ISO Controlled Facilities and the CPUC's approval of SCE's CPCN application, Riverside's obligation to make payments for the ISO Controlled Facilities pursuant to Exhibit C shall cease.

14.5. Following both ISO Board approval of the ISO Controlled Facilities and CPUC approval of SCE's CPCN application, SCE shall reimburse Riverside for all payments made to SCE by Riverside for the ISO Controlled Facilities pursuant to Section 14.4, without interest, subject to Section 14.7 hereof.

14.6. Following both ISO Board approval of the ISO Controlled Facilities and CPUC approval ofSCE's CPCN application, SCE shall reimburse Riverside for the actual costs Riverside reasonably incurred in complying with CEQA requirements and for engineering and design activities, right-of-way studies, environmental support, permitting, and other support activities reasonably determined to be necessary for the construction of Wildlife Substation and the Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tariff. Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. :::!O Mira Loma-Vista 220 kV Line Loop, without interest, subject to Section 14.7 hereof.

14.7. Riverside shall reimburse SCE for all costs incurred by SCE, including any costs reimbursed to Riverside pursuant to Sections 14.5 and 14.6, for the design, engineering, pennitting and regulatory, construction and installation of Wildlife Substation and the Mira Loma-Vista 220 kV Line Loop in the event that (i) this Agreement is tenninated prior to the date the Riverside Wilderness Substation is physically interconnected to Wildlife Substation and energized; (ii) Riverside tenninates its plan to complete construction and installation of the Riverside Wilderness Substation; (iii) Riverside does not complete construction and installation of the Riverside Wilderness Substation within one (I) year following the Wildlife Substation In-Service Date, unless such delay is due to an Uncontrollable Force event or the delay is agreed to by SCE in writing; or (iv) Riverside alters its interconnection request or changes the project and facilities description as originally specified in Riverside's 220 kV interconnection request dated December 20,2004, such that Wildlife Substation and the Mira Loma-Vista 220 kV Line Loop are no longer required.

Ifsuch events in this Section 14.7(ii), (iii), or (iv) above occur, SCE shall have the right to tenninate this Abrreementsubject to FERC acceptance and approval.

14.8. Riverside agrees to indemnify SCE for any ITCC related to Riverside's payments or transfer of property to SCE under this Agreement for SCE Interconnection Fal.:ilitiesCost and the Capital Additions Cost.

14.8.1. For SCE Interconnection Facilities Cost and the Capital Additions Cost, Riverside's liability for ITCC under this Agreement shall be calculated on a fully grossed-up basis. Except as may otherwise be agreed to by the Parties, Riverside shall pay SCE an amount equal to (1) the current taxes imposed on SCE ("Current Taxes") on the excess of (a) the gross income realized by SCE as a result of payments or property transfers made by Riverside to SCE under this Agreement (the "Gross Income Amount") over (b) the present value of future tax deductions for depreciation that will be available as a result of such payments or property transfers (the "Present Value Depreciation Amount"), plus (2) an additional amount sufficient to pennit SCE to receive and retain, after the payment of all Current Taxes, an amount equal to the net amount.

14.8.2. For this purpose, (i) Current Taxes shall be computed based on SCE's composite federal and state tax rates at the time the payments or property transfers are received and SCE will be treated as being subject to tax at the highest marginal rates in effect at that time (the "Current Tax Rate"), and (ii) the Present Value Depreciation Amount shall be computed by discounting SCE 's anticipated tax depreciation deductions as a result of such payments or property transfers by SCE 's current weighted average cost of capital. Thus, the fonnula for calculating Riverside's liability to Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tarin: Sewnd Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No. 21 SCE pursuant to this Agreement can be expressed as follows: (Current Tax Rate x (Gross Income Amount - Present Value of Tax Depreciation))/(I­ Current Tax Rate).

14.8.3. At Riverside's request and expense, SCE shall file with the Internal Revenue Service ("IRS") a request for a Private Letter Ruling ("PLR") as to whether any property transferred or sums paid, or to be paid, by Riverside to SCE under this Agreement are subject to federal income taxation.

Riverside will prepare the initial draft of the request for a PLR and will certify under penalties of perjury that all facts represented in such request are true and accurate to the best of Riverside's knowledge. Riverside and SCE shall cooperate in good faith with respect to the submission of such request. SCE shall keep Riverside fully informed of the status of such request for a PLR and shall execute either a privacy act waiver or a limited power of attorney, in a form acceptable to the IRS, that authorizes Riverside to participate in all discussions with the IRS regarding such request for a PLR. SCE shall allow Riverside to attend all meetings with IRS officials about the request and shall permit Riverside to prepare the initial drafts of any follow-up letters in connection with the request.

14.8.4. Notwithstanding any other provision of this Agreement, Riverside shall be relieved ofthe obligation to pay any ITCC, or maintain Credit Support pursuant to Section 14.9, to the extent that a favorable PLR is obtained. In the event that (a) a PLR is issued to SCE which holds that any amount paid or the value of any property transferred by Riverside to SCE under the terms of this Agreement is not subject to federal income taxation, (b) any legislative change or administrative announcement, notice, ruling or other determination makes it reasonably clear to SCE in good faith that any amount paid or the value of any property transferred by Riverside to SCE under the terms of this Agreement is not taxable to SCE, (c) any abatement, appeal, protest, or other contest results in a determination that any payments or transfers made by Riverside to SCE are not subject to federal income tax, or (d) ifSCE receives a refund from any taxing authority for any overpayment of tax attributable to any payment or property transfer made by Riverside to SCE pursuant to this Agreement, SCE shall promptly refund to Riverside the following:

14.8.4.1. any payment made by Riverside under this Section 14 for taxes that is attributable to the amount determined to be non-taxable, together with interest thereon,

14.8.4.2. interest on any amounts paid by Riverside to SCE for such taxes which SCE did not submit to the taxing authority, calculated in accordance with the methodology set forth in FERC's regulations at 18 CFR §35.19a(a)(2)(iii) from the date payment was made by Riverside to the date SCE refunds such payment to Riverside, and,

14.8.4.3. with respect to any such taxes paid by SCE, any refund or credit Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Calil{)rnia Edison Company
FERC Electric Tarin: Second Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No. 22 SCE receives or to which it may be entitled from any Governmental Authority, interest (or that portion thereof attributable to the payment described in Section 14.8.4.1, above) owed to SCE for such overpayment of taxes (including any reduction in interest otherwise payable by SCE to any Governmental Authority resulting from an offset or credit); provided, however, that SCE will remit such amount promptly to Riverside only after and to the extent that SCE has received a tax refund, credit or offset from any Governmental Authority for any applicable overpayment of income tax related to SCE's Interconnection Facilities.

The intent Qf this provision is to leave the Parties, to the extent practicable, in the event that no taxes are due with respect to any payment for Interconnection Facilities hereunder, in the same position they would have been in had no such tax payments been made.

14.9. Except as provided in Section 14.8.4, thirty (30) calendar days prior to the Wildlife Substation In-Service Date, or the in-service date of any Capital Additions, Riverside shall (i) pay to SCE the ITCC, or (ii), to the extent Riverside requests to pursue a PLR consistent with Section 14.8.3, provide to SCE, as security for the estimated ITCC for the SCE Interconnection Facilities or Capital Additions, in a form that is acceptable to SCE in its sole discretion, (a) an unconditional and irrevocable letter of credit in US dollars from a depository institution organized under the laws of the United States of America or any State (or any domestic branch ofa foreign bank), which (i) has either (A) a long-term unsecured debt rating of A or higher by S&P or A2 or higher by Moody's or (B) a certificate of deposit rating of A-I + by S&P and P-l by Moody's, and (ii) whose deposits are insured by FDIC, together with evidence of such ratings; (b) an unconditional and irrevocable surety bond in US dollars issued by an insurance company that has and maintains an Insurance Financial Strength rating of A2 or higher from Moody's or A or higher from S&P, and is rated no less than A- (with a minimum size rating of VIII) by Best's Insurance Guide and Key Ratings, together with evidence of such ratings; (c) an amount of money equal to the ITCC obligations deposited into an escrow account as agreed upon between the Parties or (d) other security that is acceptable to SCE in its sole discretion.

14.9.1. Any Credit Support provided hereunder for any ITCC associated with the initial SCE Interconnection Facilities shall be payable in at least the amount specified in Section 14.9.2, and shall be issued in favor of or for the benefit of SCE and its successors and assignees, and shall state that it may be drawn upon in whole or in part by SCE or its successors or assignees at any time (i) if a substitute Credit Support meeting the requirements of Section 14.9 is not provided within ten (10) calendar days after any reduction in the applicable rating of the credit provider meeting the requirements of Section 14.9 below the Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

SOllthern California Edison Company
fERC Elel:tric Tarin: Second Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No. 23 level specified herein; or (ii) if a substitute Credit Support has not been provided at least thirty (30) calendar days before any expiration of the Credit Support.

14.9.2. The amount available to be drawn under any Credit Support for ITCC on the initial SCE Interconnection Facilities shall be equal to $1,662,500. Any Credit Support provided for Capital Additions shall be based on a good faith estimate of the ITCC, if any, for such Capital Additions for which Riverside will be responsible.

14.9.3. In addition to the provisions described above, any Credit Support provided hereunder shall contain such tenns, conditions, waivers, representations, covenants, and other provisions as may be customary for similar instruments delivered in the State of California, as approved by SCE in its reasonable discretion.

IS. Billing And Payment:

15.1. Billing Procedure.

15.1.1. Except as otherwise specifically provided herein, commencing on or following the Effective Date, SCE will render bills to Riverside for charges and payments under this Agreement and Riverside shall pay such bills within twenty (20) calendar days of receipt of such bills.

All payments shall be made in immediately available funds payable to SCE, or by wire transfer to a bank named by SCE.

15.1.2. Riverside shall make payments to SCE for the work as described in Section 14.4 and the SCE Interconnection Facilities Payment according to the payment schedule shown in Exhibit C. The amount of such charges is based on SCE's cost estimates and shall be subject to later adjustment pursuant to Sections 15.1.8.1 and 15.1.8.2.

15.1.3. Commencing on or following the Wildlife Substation In-Service Date, each month SCE will render bills to Riverside for the SCE Interconnection Facilities Charge. The SCE Interconnection Facilities Charge payments shall initially be based on SCE's estimate of the SCE Interconnection Facilities Cost, and such payments shall be subject to later adjustment pursuant to Sections 15.1.8.3 and 15.1.8.4.

The SCE Interconnection Facilities Charge for the first and last month of service hereunder shall be pro-rated based on the number of days in which service was provided during said months.

15.1.4. SCE will bill Riverside for the Capital Additions Payment prior to commencing any work on any Capital Additions; provided that, at SCE's sole discretion, SCE may bill Riverside for the Capital Additions Payment after commencing such work if SCE detennines that Capital Additions are required in accordance with safety or regulatory requirements or to preserve system integrity or reliability.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on; Effective:

Southern California Edison Company
FERC Electric Taritl Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 24 Such billing shall initially be based on SCE's cost estimates and shall be subject to later adjustment pursuant to Sections 15.1.8.1 and

15.1.8.2. Riverside may be required to provide additional security for such Capital Additions pursuant to Section 14.9.

15.1.5. Except as otherwise provided in Section 11.3, if any components comprising a part of the SCE Interconnection Facilities are removed to accommodate such Capital Additions and such removal results in a change in the SCE Interconnection Facilities Cost, the SCE Interconnection Facilities Charge shall be adjusted as of the in-service date of such Capital Additions to reflect the change in the SCE Interconnection Facilities Cost.

15.1.6. Except as otherwise provided in Section 11.3, if such Capital Additions result in any change in the SCE Interconnection Facilities Cost, then the SCE Interconnection Facilities Charge shall be adjusted as of the in-service date of such Capital Additions to reflect the change in the SCE Interconnection Facilities Cost.

15.1.7. Commencing on the Effective Date, SCE will render bills to Riverside for any reimbursable FERC fees in accordance with Section

19.2. Such billing shall be for any reimbursable FERC fees or costs incurred since the preceding billing.

15.1.8. Within twelve (12) months following the Wildlife Substation In­ Service Date, or the in-service date of any Capital Additions, as the case may be, SCE shall detennine the actual recorded SCE Interconnection Facilities Cost, or the Capital Additions Cost, including the associated ITCC (if applicable) and One-Time Cost, and provide Riverside with a final invoice.

15.1.8.1. If the amounts paid for the estimated SCE
Interconnection Facilities Payment, or the Capital
Additions Payment are less than the amounts due for the SCE Interconnection Facilities Payment, or the Capital
Additions Payment as detennined from the actual
recorded SCE Interconnection Facilities Cost, or the
Capital Additions Cost, including the associated One­
Time Cost, SCE will bill Riverside for the difference
between the amounts previously paid by Riverside and
the actual recorded costs, without interest, within twenty (20) calendar days of the date of such invoice.

15.1.8.2. If the amounts paid for the estimated SCE
Interconnection Facilities Payment, or the Capital
Additions Payment are greater than the amounts due for
the SCE Interconnection Facilities Payment, or the
Capital Additions Payment as detennined from the actual recorded SCE Interconnection Facilities Cost, or the
Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southt:m Calitl)mia Edison Company
FERC Electric Taritl Secl)nd Revised Volume No. (j
Sc::rviceAgreement No. 59 Substitute Original Sheet No. ::!5 Capital Additions Cost, including the associated One­
Time Cost, SCE will refund Riverside the ditference
between the amounts previously paid by Riverside and
the actual recorded costs, without interest, within twenty (20) calendar days of the dute of such invoice.

15.1.8.3. If the amounts paid for the SCE Interconnection Facilities Charge are less than the amounts due for the SCE
Interconnection Facilities Charge as detennined from the actual recorded SCE Interconnection Facilities Cost, SCE will bill Riverside for the difference between the amounts previously paid by Riverside and the amounts which
would have been paid based on actual recorded costs,
without interest, on the next regular billing.

15.1.8.4. Ifthe amounts paid for the SCE Interconnection Facilities Charge are greater than the amounts due for the SCE
Interconnection Facilities Charge as detennined from the actual recorded SCE Interconnection Facilities Cost, SCE will credit Riverside the difference between the amounts previously paid by Riverside and the amounts which
would have been paid based on actual recorded costs,
without interest, on the next regular billing.

15.1.9. Within sixty (60) days following the later of (I) ISO Board approval of the ISO Controlled Facilities or (2) CPUC approval ofSCE's CPCN application, pursuant to Section 14.5, Riverside shall invoice SCE for the amount that Riverside paid to SCE pursuant to Section

14.4 for the ISO Controlled Facilities, and SCE shall pay such amount invoiced, without interest, within twenty (20) calendar days following receipt of such invoice

15.1.10. Within sixty (60) calendar days following the later of (I) ISO Board approval of the ISO Controlled Facilities or (2) CPUC approval of SCE's CPCN application, pursuant to Section 14.6, Riverside shall submit to SCE an invoice itemizing Riverside's actual costs incurred in complying with CEQA requirements and for engineering and design activities, right-of-way studies, environmental support, pennitting, and other support activities reasonably detennined to be necessary for the construction of Wildlife Substation and the Mira Loma-Vista 220 kV Line Loop, and SCE shall pay such amount invoiced, without interest, within twenty (20) calendar days following receipt of such invoice.

15.1.11. Upon tennination of this Agreement in accordance with Section 14.7, Riverside shall pay to SCE an amount equal to the amount previously reimbursed to Riverside by SCE pursuant to Sections 14.5 and 14.6, without interest within twenty (20) calendar days of receipt of an Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southem Califomia Edison Company
FERC Electric Tariff, Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 26 itemized invoice from SCE for such previously reimbursed amounts.

15.1.12. If this Agreement terminates prior to the Wildlife Substation In­ Service Date, then within twelve (12) months following such tennination, SCE will submit to Riverside an invoice itemizing SCE's actual costs incurred (or, as of the termination date, committed to be incurred, and subsequently paid) pursuant to this Agreement. Such invoice shall reflect all payments received by SCE from Riverside, which shall be credited against the amount of SCE's costs and expenses incurred or irrevocably committed to be incurred in accordance with this Agreement.

15.1.12.1. If the amounts paid by Riverside to SCE prior to the tennination of this Agreement are less than the amounts due under this Agreement, as determined from the actual recorded cost, SCE will bill Riverside for the difference between the amounts previously paid by Riverside and
the actual costs, without interest, within twenty (20)
calendar days of the date of such invoice.

15.1.12.2. If the amounts paid by Riverside to SCE prior to the termination of the Agreement are greater than the
amounts due under this Agreement, as determined from
the actual recorded cost, SCE will refund Riverside the difference between the amounts previously paid by
Riverside and the actual costs, without interest, within twenty (20) calendar days of the date of such invoice.

15.2. Removal Costs.

15.2.1. If, in accordance with Section 12.2, SCE decides to physically remove the SCE Interconnection Facilities, SCE shall render a bill to Riverside for the Removal Cost. Riverside shall pay the Removal Cost in accordance with Section 14.1. Such billing shall be initially based on SCE's estimate of the Removal Cost. Within 12 months following the removal of the SCE Interconnection Facilities SCE shall determine the recorded Removal Cost and provide Riverside with a final invoice.

15.2.2. If the amount paid for the Removal Cost is less than the amount due for the Removal Cost as determined from the actual recorded Removal Cost, SCE will bill Riverside for the difference between the amount previously paid by Riverside and the amount which would have been paid based on actual recorded costs, without interest, within twenty (20) calendar days after receipt thereof.

15.2.3. If the amount paid for the Removal Cost is greater than the amount due for the Removal Cost as determined from the actual recorded Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southem Califomia Edison Company
FERC Electric Tariff. Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 27 Removal Cost, SCE will refund Riverside the difference between the amount previously paid by Riverside and the amount which would have been paid based on actual recorded costs, without interest. SCE shall make such payment within twenty (20) calendar days after such determination is made.

15.3. Interest On Delinquent Balances.

Interest on any delinquent amounts shall be calculated in accordance with the methodology specitied for interest on refunds in FERC's regulations at 18 C.F.R. Section 35.19a(a)(2)(iii). Interest on delinquent amounts shall be calculated from the due date of the bill to the date of payment. When payments are made by mail, bills shall be considered as having been paid on the date of receipt by the owed Party.

15.4. Default.

In the event that Riverside fails for any reason to make payment to SCE on or before the due date as provided above, and such failure of payment is not corrected within thirty (30) calendar days after SCE notifies Riverside to cure such failure, a default by Riverside shall be deemed to exist. Upon the occurrence of a default, SCE shall have the right to terminate this Agreement subject to FERC acceptance or approval.

15.5. Billing Dispute.

In the event a Party desires to dispute all or any part of any bill submitted by the other Party, such disputing Party shall nevertheless pay the full amount of the bill when due and give written notification to the other Party's Authorized Representative within twenty-four (24) months from the date of the billing stating the grounds for the dispute and the amount in dispute. The disputing Party shall not be entitled to an adjustment on any bill not brought to the attention of the other Party within the time and in the manner herein specified.

For any payments to a Party resulting from dispute resolutions, interest calculated in accordance with the methodology specified for interest on refunds in FERC's regulations at 18 C.F.R. Section 35. I9a(a)(2)(iii) shall be added to the amount of any overpayment, and the entire amount refunded to the disputing Party.

15.6. Addresses For Billing And Payment.

15.6.1. All payments to be made by Riverside to SCE shall be sent to:

Issued by: James A. CuilIier
Director of FERC Rates & Regulation
Issued on: EtTective:

Southem Caliti)mia Edison Company
FERC Electric Taritf. Second Revised Volume No. 0
Service Agreement No. 59
Southern California Edison Company
Accounts Receivable
Box 600
Rosemead, California 91770-0600
Substitute Original Sheet No. 28
SCE may, at any time, by written notice to Riverside pursuant to Section 26, change the address to which payments will be sent.

15.6.2. All payments by SCE to Riverside shall be sent to:

City of Riverside
Central Cashiering
3900 Main Street
Riverside, CA 92522

15.6.3. All billings to be presented by SCE to Riverside shall be sent to:

City of Riverside
Public Utilities General Manager
3900 Main Street
Riverside, CA 92522
Riverside may, at any time, by written notice to SCE pursuant to Section 26, change the addresses to which payments or billings will be sent.

16. Disputes:

Except where otherwise provided by this Agreement, and except as otherwise limited by law, the ISO ADR Procedures set forth in Section 13 of the ISO Tariff shall apply to all disputes between Riverside and SCE which arise under this Agreement; provided, however, that the ISO ADR Procedures set forth in Section 13 of the ISO Tariff shall not be used to determine whether (i) rates and charges set forth in this Agreement are just and reasonable under the Federal Power Act, or (ii) termination of this Agreement by SCE is permissible.

17. Audits:

17.1. SCE will maintain records and accounts of all costs it incurred and seeks reimbursement for pursuant to Section 14, for a period of twenty-four months following the issuance ofthe final invoices in accordance with Section 15, in sufficient detail to allow verification of all costs incurred, including, but not limited to, labor and associated labor burden, material and supplies, outside services, and administrative and general expenses.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

SOllthern Calitornia Edison Company
FERC Electril: Tariff. Sel:cmd Revised Volume No. /)
Service Agreement No. 59 Substitute Original Sheet No. 29

17.2. Riverside will maintain records and accounts of all costs it incurred and seeks reimbursement for pursuant to Section 14 for a period of twenty-four months following the issuance of the final invoices in accordance with Section 15, in sutlicient detail to allow verification of all costs incurred, including, but not limited to, labor and associated labor burden, material and supplies, outside services, and administrative and general expenses.

17.3. Riverside and SCE shall each have the right, during normal business hours, and upon prior reasonable notice to the other Party, to audit at its own expense the other Party's accounts and records pertaining to such Party's performance or such Party's satisfaction of obligations owed to the other Party under this Agreement. Any audit authorized by this Section shall be performed at the offices where such accounts and records are maintained and shall be limited to those portions of such accounts and records that relate·to such Party's performance and satisfaction of obligations under this Agreement.

18. Authorized Representatives:

18.1. In order to provide for the exchange of information and the preparation and approval of any necessary operating procedures or revisions to operating procedures regarding the activities required under this Agreement, and to otherwise engage in such activities as may be required for the implementation of this Agreement as provided in Section 18.4, each Party shall have an Authorized Representative as provided below.

18.2. Following execution of this Agreement and prior to the Wildlife Substation In­ Service Date, the Authorized Representatives shall be as follows:

Southern California Edison Company:

Mr. Raymond M. Paz
Project Manager
2141 Walnut Grove Avenue
Rosemead, California 91770
(626) 302-8015
(626) 302-8010 (Fax)
City of Riverside
City Manager
3900 Main Street
Riverside, CA 92522
(951) 826-5553
(951) 826-5470 (Fax)

18.3. Upon and subsequent to the Wildlife Substation In-Service Date, the Authorized Representatives shall be as follows:

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective;
Southern California Edison Company
FERC Electric Tarin: Second Revised Volume No. (,
Service Agreement No. 59 Substitute Original Sheet No. 30 Southern California Edison Company:

Manager, Grid Contracts Administration and Billing
Southern California Edison Company
P. O. Box 800
Rosemead, California 91770
(626) 302-9640
(626) 302-1152 (Fax)
City of Riverside
City Manager
3900 Main Street
Riverside, CA 92522
(951) 826-5553
(951) 826-5470 (Fax)

18.4. The Authorized Representatives are authorized to act on behalf of the Party they represent in the implementation of this Agreement. Any action taken or determination made by the Authorized Representatives in the implementation of this Agreement will be in writing. The Authorized Representatives may delegate any of their responsibilities herein, provided, that the Authorized Representative provides written notice to the other Party of such delegation of responsibility, and provided that the Authorized Representative may not delegate the execution of any communication required to be in writing pursuant to this Section.

18.5. The Authorized Representatives shall have no authority or power to modify, add, waive or eliminate any terms or conditions of this Agreement.

18.6. Either Party may at any time change the designation of its Authorized Representative by written notice to the other Party pursuant to Section 26.

19. Regulatory Authority:

19.1. Nothing contained herein shall be construed as affecting in any way: (i) the right of SCE to unilaterally make application to the FERC for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Rules and Regulations promulgated by FERC thereunder; (ii) the right of Riverside to oppose such changes under Section 205 of the Federal Power Act; (iii) the right of Riverside to file a complaint requesting a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, or rate methodology or design relating to services provided hereunder, under Section 206 of the Federal Power Act and pursuant to the rules and regulations promulgated by the FERC thereunder; or (iv) the right ofSCE to oppose such complaint by Riverside under Section 206 of the Federal Power Act. Any change shall become effective pursuant to Section 205 of the Federal Power Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tariff. Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. J I Act.

19.2. Riverside shall reimburse SCE tor all fees and charges imposed on SCE by the FERC attributable to the service provided under this Agreement, or any amendments thereto. As of the Etlective Date, FERC has not imposed any fees and charges on SeE attributable to the service provided under this Agreement.

19.3. The Parties each recognize that regulatory, or legislative cost recovery mechanisms may result in a Party recovering all or part of their costs in connection herewith from others, and nothing contained herein shall require a Party to forego the application of any such cost recovery mechanism(s), or alter any Party's responsibility for costs approved for recovery under any such mechanism( s).

20. No Dedication Of Facilities:

Any undertaking by one Party to the other Party under this Agreement shall not constitute the dedication of the electrical system or any portion thereof of the undertaking Party to the public or to the other Party, and it is understood and agreed that any such undertaking by a Party will cease upon the tennination of its obligations hereunder.

21. No Third Party Rights:

Unless otherwise specifically provided in this Af:,1feement,the Parties do not intend to create rights in or grant remedies to any third party as a beneficiary of this Agreement or of any duty, covenant, obligation, or undertaking established hereunder.

22. Assignments:

22.1. Any assignment by a Party of its interest in this Agreement which is made without the written consent ofthe other Party shall not relieve such assigning Party from the primary liability for any of its duties and obligations under this Agreement, and in the event of any such assignment, the assigning Party shall continue to remain primarily liable for payment of any and all money due to the other Party as provided under this Agreement, and for the perfonnance and observance of all other covenants, duties, and obligations to be perfonned and observed under this Agreement by the assigning Party to the same extent as though no assignment had been made.

22.2. Except as otherwise provided by written agreement of the non-assigning Party, whenever an assignment of a Party's interest in this Agreement is made with the written consent of the other Party, the assigning Party's assignee shall expressly assume in writing the duties and obligations hereunder ofthe assigning Party and, within thirty (30) calendar days after any such assignment and assumption of duties and obligations, the assigning Party shall furnish or cause to be furnished to the other Party a true and correct copy of such Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Elt:ctric Tarin: Second Revised Volume No. 0
Service Agreement No. 59 Substitute Original Sheet No. 32 assignment and assumption of duties and obligations.

23. Relationship Of Parties:

The covenants, obligations, and liabilities of the Parties are intended to be several and not joint or collective, and nothing contained in this Agreement shall ever be construed to create an association, joint venture, trust, or partnership, or to impose a trust or partnership covenant, obligation, or liability on or with regard to either Party.

Each Party will be individually responsible for its own covenants, obligations, and liabilities as provided in this Agreement. Neither Party shall be under the control of or will be deemed to control the other Party. Neither Party will be the agent of or have a right or power to bind the other Party without such other Party's express written consent.

24. \Vaivers:

Any waiver at any time by either Party of its rights with respect to a default under this Agreement, or with respect to any other matter arising in connection with this Agreement, will not be deemed a waiver with respect to any other or subsequent default or other matter arising in connection therewith. Any delay, short of any statutory period of limitation, in asserting or enforcing any right, will not be deemed a waiver of such right.

25. Governing Law:

Except as otherwise provided by federal law, this AbJfeementshall be governed by and construed in accordance with, the laws of the state of California.

26. Notices:

Any notice, demand, or request provided in this Agreement, or served, given, or made in connection with it, will be in writing and deemed properly served, given, or made if delivered in person, transmitted by facsimile (followed by written confirmation) or sent by United States mail, postage prepaid, to the persons specified herein unless otherwise provided in this Agreement:

Southern California Edison Company
Manager, Grid Contracts Administration and Billing
P.O. Box 800
Rosemead, California 91770
Tel: (626) 302-9640
Fax: (626)302-1152
City of Riverside
Public Utilities General Manager
Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

SCluthernCalitornia Edison Company
FERC Electric Tarift~ Second Revised Volume No. (,
Service Agreement No. 59
3900 Main Street
Riverside, CA 92522
Tel: (951) 826-5784
Fax: (951) 826-2450
Substitute Original Sheet No. 33
Either Party may at any time, by notice to the other Party, change the designation or address of the person so specified as the one to receive notices pursuant to this A&rreement.

27. Severability:

In the event that any tenn, provision, covenant, or condition of this Agreement or the application of any such tenn, covenant, or condition will be held invalid as to any person, entity, or circumstance by any court, arbitration, or regulatory authority having jurisdiction, the invalidity of such tenn, covenant or condition shall not affect the validity of any other tenn, provision, condition or covenant and such tenn, provision, covenant or condition shall remain in force and effect as applied to this Agreement to the maximum extent pennitted by law. The Parties hereto further agree to negotiate in good faith to establish new and valid tenns, conditions and covenants to replace any found invalid so as to place each Party as nearly as possible in the position contemplated by this Agreement.

28. Confidentiality:

Confidential Infonnation shall include, without limitation, all infonnation that is identified as confidential by the disclosing Party relating to a Party's technology, research and development, business affairs, and pricing, and any infonnation supplied by either Party to the other Party prior to the Effective Date of this Agreement.

Infonnation is Confidential Information only if it is clearly designated or marked in writing as confidential on the face of the document, or, if the information is conveyed orally or by inspection, if the Party providing the infonnation orally infonns the Party receiving the information that the infonnation is confidential.

If requested by either Party, the other Party shall provide in writing, the basis for asserting that the infonnation referred to in this Section 28 warrants confidential treatment, and the requesting Party may disclose such writing to the appropriate Governmental Authority. Each Party shall be responsible for the costs associated with affording confidential treatment to its information.

28.1. Tenn. During the tenn of this Agreement, and for a period of three (3) years after the expiration or tennination of this Agreement, except as otherwise Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tarin: Second Re"ised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 34 provided in this Section 28, each Party shall hold in contidence and shall not disclose to any person Confidential Infonnation.

28.2. Scope. Confidential Infonnation shall not include infonnation that the receiving Party can demonstrate: (I) is generally available to the public other than as a result of a disclosure by the receiving Party; (2) was in the lawful possession of the receiving Party on a non-confidential basis before receiving it from the disclosing Party; (3) was supplied to the receiving Party without restriction by a third party, who, to the knowledge of the receiving Party after due inquiry, was under no obligation to the disclosing Party to keep such infonnation confidential; (4) was independently developed by the receiving Party without reference to Confidential Infonnation of the disclosing Party; (5) is, or becomes, publicly known, through no wrongful act or omission of the receiving Party or breach of this Agreement; or (6) is required, in accordance with Section 28.7 of this Agreement, Order of Disclosure, to be disclosed by any Governmental Authority or is otherwise required to be disclosed by law or subpoena, or is necessary in any legal proceeding establishing rights and obligations under this Agreement.

Infonnation desi!:,1J1atedas Confidential Infonnation will no longer be deemed confidential if the Party that designated the infonnation as confidential notifies the other Party that it no longer is confidential.

28.3. Release of Confidential Infonnation. No Party shall release or disclose Confidential Infonnation to any other person, except to its employees, consultants, affiliates (limited by the Standards of Conduct requirements set forth in Part 358 ofFERC's Regulations, 18 C.F.R. 358), subcontractors, or to parties who may be or are considering providing financing to or equity participation with the disclosing Party, or to potential purchasers or assignees of the disclosing Party, on a need-to-know basis in connection with this Agreement, unless such person has first been advised of the confidentiality provisions of this Section 28 and has agreed to comply with such provisions. Notwithstanding the foregoing, a Party providing Confidential Infonnation to any person shall remain primarily responsible for any release of Confidential Infonnation in contravention of this Section

28. 28.4. Rights. Each Party retains all rights, title, and interest in the Confidential Infonnation that each Party discloses to the other Party. The disclosure by each Party to the other Party of Confidential Infonnation shall not be deemed a waiver by a Party or any other person or entity of the right to protect the Confidential Infonnation from public disclosure.

28.5. No Warranties. The mere fact that a Party has provided Confidential Infonnation does not constitute a warranty or representation as to its accuracy or completeness. In addition, by supplying Confidential Infonnation, no Party obligates itself to provide any particular infonnation Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southl:m Califomia Edison Company
FERe Ell:ctric Tarin'. Second Revised Volume No.6
Service Agrcel11l:ntNo. 59 Substitutl: Original Sheet No. 35 or Confidential Information to the other Party nor to enter into any further agreements or proceed with any other relationship or joint venture.

28.6. Standard of Care. Each Party shall use at least the same standard of care to protect Confidential Infonnation it receives as it uses to protect its own Confidential Information from unauthorized disclosure, publication or dissemination. Each Party may use Confidential Information solely to fultill its obligations to the other Party under this Al:,Jfeementor its regulatory requirements.

28.7. Order of Disclosure. If a court or a Governmental Authority or entity with the right, power, and apparent authority to do so requests or requires any Party, by subpoena, oral deposition, interrogatories, requests for production of documents, administrati ve order, or otherwise, to disclose Confidential Infonnation, that Party shall provide the other Party with prompt notice of such request(s) or requirement(s) so that the other Party may seek an appropriate protective order or waive compliance with the terms of this Agreement. Notwithstanding the absence of a protective order or waiver, the Party may disclose such Confidential Information which, in the opinion of its counsel, the Party is legally compelled to disclose. Each Party will use reasonable efforts to obtain reliable assurance that confidential treatment will be accorded any Confidential Information so furnished.

28.8. Termination of Agreement. Upon termination of this Agreement for any reason, each Party shall, within ten (10) calendar days of receipt of a written request from the other Party, use reasonable efforts to destroy, erase, or delete (with such destruction, erasure, or deletion certified in writing to the other Party) or return to the other Party, without retaining copies thereof, any and all written or electronic Confidential Information received from the other Party.

28.9. Remedies. The Parties agree that monetary damages would be inadequate to compensate a Party for the other Party's breach of its obligations under this Section 28. Each Party accordingly agrees that the other Party shall be entitled to equitable relief, by way of injunction or otherwise, if the first Party breaches or threatens to breach its obligations under this Section 28, which equitable relief shall be granted without bond or proof of damages, and the receiving Party shall not plead in defense that there would be an adequate remedy at law. Such remedy shall not be deemed an exclusive remedy for the breach of this Section 28, but shall be in addition to all other remedies available at law or in equity. The Parties further acknowledge and al:,Jfeethat the covenants contained herein are necessary for the protection of legitimate business interests and are reasonable in scope. No Party, however, shall be liable for indirect, incidental, or consequential or punitive damages of any nature or kind resulting from or arising in connection with this Section 28.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southem Califomia Edison Company
FERC Electric Tarin: Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 36

28.10. Disclosure to FERC, its Statf, or a State. Notwithstanding anything in this Section 28 to the contrary, and pursuant to 18 C.F.R. section Ib.20, if FERC or its staff: during the course of an investigation or otherwise, requests infonnation from one of the Parties that is otherwise required to be maintained in confidence pursuant to this Agreement, the Party shall provide the requested infonnation to FERC or its staff within the time provided for in the request for infonnation. In providing the infonnation to FERC or its staff: the Party must, consistent with 18 C.F.R. section 388.112, request that the infonnation be treated as confidential and non-public by FERC and its staff and that the infonnation be withheld from public disclosure. Each Party is prohibited from notifying the other Party to this Agreement prior to the release of the Confidential Infonnation to FERC or its staff. Each Party shall notify the other Party to the Agreement when it is notified by FERC or its staff that a request to release Confidential Infonnation has been received by FERC, at which time either of the Parties may respond before such infonnation would be made public, pursuant to 18 C.F.R. section 388. I 12.

Requests from a state regulatory body conducting a confidential investigation shall be treated in a similar manner if consistent with the applicable state rules and regulations.

28. I I. Subject to the exception in Section 28. I0, Confidential Infonnation shall not be disclosed by the other Party to any person not employed or retained by the other Party, except to the extent disclosure is (i) required by law; (ii) reasonably deemed by the disclosing Party to be required to be disclosed in connection with a dispute between or among the Parties, or the defense of litigation or dispute; (iii) otherwise pennitted by consent of the other Party, such consent not to be unreasonably withheld; or (iv) necessary to fulfill its obligations under this Agreement or as a transmission service provider or a balancing authority area operator including disclosing the Confidential Infonnation to a regional transmission organization or the ISO or to a regional or national reliability organization. The Party asserting confidentiality shall notify the other Party in writing of the infonnation it claims is confidential. Prior to any disclosures of the other Party's Confidential Infonnation under this subparagraph, or if any third party or Governmental Authority makes any request or demand for any of the infonnation described in this subparagraph, the disclosing Party agrees to promptly notify the other Party and cooperate with the other Party in seeking to protect the Confidential Infonnation from public disclosure by confidentiality agreement, protective order or other reasonable measures.

29. Entire Agreement:

This Agreement constitutes the complete and final expression of the agreement between the Parties and is intended as a complete and exclusive statement of the Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tarin: Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 37 tenus of their agreement which supersede all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and other a,bJfeementswhich may have been made in connection with the subject matter of this Agreement.

30. Amendment:

Except as provided in Section 19.1, this Agreement may be amended only by a written instrument duly executed by the Parties.

31. Ambiguities:

Ambiguities or uncertainties in the wording of this Agreement shall not be construed for or against any Party, but will be construed in the manner that most accurately reflects the Parties' intent as of the date they executed this Agreement.

Issued by: James A. CuiIlier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tariff, Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 38

32. Signature Clause:

The signatorieshereto representthat they are authorizedto enter into this Agreement on behalf of the Party for whom they sign. This Agreementis hereby executed as of the JLth.. day of March , 2009.

By:

Name:

Title:

THE CITY OF RIVERSIDE
~~e:~J~~ah~~
Title: Assistant City Manager
AITES/;Jx1,...;;;..U_=- _
~Clerk
Approved as to form:

Mark L.'Parsons
DeputyCity Attorney
Issued by: James A Cuillier
Director ofFERC Rates &. Regulation
Issued on: Effective:

Southem Caliti.lmia Edison Company
FERC Ell:ctric Tarin'. Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 39 INTERCONNECTION FACILITIES AGREEMENT BET\VEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY
Exhibit A
Facilities Description

1. ISO Controlled Facilities: SCE shall:
a. Wildlife Substation:

I. Engineer, construct and install a new 220 kV interconnection facility with three positions arranged in a breaker-and-a-half configuration to terminate four lines and provide two points of service to the new City of Riverside Wilderness Substation. (SCE Interconnection Facilities located within the Wildlife Substation are as identified below)
II. Loop the existing Mira Lorna-Vista No.1 220 kV Transmission Line into the new 220 kV interconnection facility.
111. Wildlife Substation will be located adjacent to the Riverside Wilderness Substation.

IV. Install one position consisting of two 220 kV circuit breakers, disconnects, relay protection facilities, metering facilities, poles, conductors and appurtenant facilities, to provide one point of service to the Riverside Wilderness Substation.
v. Install a new remote terminal unit at Wildlife Substation to monitor and control as follows:

1. MW and MVAR on the incoming SCE lines.

2. MW and MVAR on the outgoing Riverside lines.
3, Bus voltage.
4, Circuit breaker status at Wildlife Substation.

5. Circuit breaker status of the Riverside Interconnection Facilities.

6. Circuit breaker control.

7. Protection relay status.

8. Alarms status.
b. Mira Lorna Substation:

Upgrade line protection on the existing Mira Lorna-Vista No.1 220 kV line position by removing the existing relays and installing one a.E. L90 and one SEL3l1 L line differential relays and two a.E. C60 breaker management relays.

This line will become the Mira Lorna-Wildlife 220 kV Transmission Line.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tariff. Sewnd Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 40 c. Vista Substation:

Upbrradethe line protection on the existing Mira Loma-Vista No. I 210 kV line position by removing the existing relays and installing one G.E. L90 and one SEL311 L line ditferential relay and two G.E. C60 breaker management relays.

This line will become the Vista-Wildlife 220 kV Transmission Line. d. Transmission:

1. Mira Lorna-Vista No. I 220 kV Transmission Line:

Engineer and construct approximately 8.25 miles of new line constructed on double circuit tubular steel poles Llsing2-1590KCMIL ACSR conductor and optical ground wire to loop the line into Wildlife Substation.

I. This work requires the installation of approximately 550,000 ft. of I590KCMIL ACSR conductor and 45,000 ft. optical ground wire.

2. This work also requires the installation of two single-circuit dead­ end tubular steel poles to sectionalize the existing 220 kV transmission line and a total of thirty-six suspension and twenty dead-end double-circuit tubular steel poles equipped with a total of two hundred and sixteen suspension and two hundred and fifty two dead end insulator assemblies.
e. Telecommunications:

1. Install two new taps and risers on the existing Mira Lorna-Vista No. 1 fiber wrap and tap one side to the new optical ground wire of the new double circuit line connecting to Wildlife Substation.

11. Install 65,000 ft. of new overhead fiber optic cable on a separate route between Mira Lorna and Wildlife Substations.
lll. Both installations described above are required to form a new Mira Loma­ Vista-Wildlife-Mira Lorna closed fiber optic loop.

IV. Install new telecommunication equipment to Wildlife Substation to support the new line protection equipment.
f. Corporate Real Estate:

Acquire right-of-way as needed for Wildlife Substation and the 8.25 miles of double circuit transmission line.

2. SCE Interconnection Facilities: (Non-ISO Controlled Facilities). SeE shall:
a. Install within Wildlife Substation the following:
i. One position consisting of two 220 kV circuit breakers, disconnects, relay protection facilities, metering facilities, poles, conductors and appurtenant facilities, to provide one point of service to the Riverside Wilderness Substation.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Caliti)rnia Edison Company
FERC Electric Tariff. Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 41

11. One position consisting of one 220 kY circuit breaker, disconnects, relay protection facilities, metering facilities, poles, conductors and appurtenant facilities, to provide a second point of service to the Riverside Wilderness Substation.
111. Install metering equipment to monitor the two lines serving the City of Riverside.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern Calittlrnia Edison Company
FERC Electric Tarin: Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 42 I~TERCONNECTION FACILITIES AGREEMENT BET\VEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY
Exhibit B
Facilities Cost

SCE SCE
Cost of ISO SCE Interconnection Interconnection
Controlled Interconnection Facilities Facilities One-
Element Facilities Facilities Cost ITCC· Time Cost Total Cost Wildlife Substation $ 5.767.419 $ 3,290.000 $1,151500 $ 1,007,000 $11.215,919 Mira Loma $ 180,000 $ 180,000
Substation
Vista Substation $ 216,000 $ 216,000
Transmission Line $20,794,000 $20.794,000
Telecommunications $ 895.000 $ 895.000
Metering Services $ 21.000 $ 21.000
Power System $ 80,000 $ 80,000
Control
Corporate Real $20,216,000 $20,216,000
Estate
Licensing & $1,090,000 $ 1,460,000 $ 511,000 $3,061,000 Permitting
Total $49,259.419 $ 4.750.000 $1,662,500 $ 1,007,000 $56.678.919 SCE Interconnection Facilities Payment = (SCE Interconnection Facilities Cost + SCE Interconnection Facilities One-Time Cost) = ($3,290,000 + $1,007,000+$1,460,000) = $5,757,000 ·SCE Interconnection Facilities ITCC will be provided for pursuant to Section 14.9, Monthly Charges:

Estimated SCE Interconnection Facilities Charge = (Customer-Financed Monthly Rate + SCE Interconnection Facilities Cost):

EtIective Date Customer-Financed Estimated SCE SCE Interconnection Facilities Monthly Rate Interconnection Charge Based on Estimated Cost Facilities Cost
SCE Interconnection 0.33% $4,750,000 $15,675.00
Facilities In-Service Date
Actual SCE Interconnection Facilities Charge:

Effective Date SCE-Financed SCE Interconnection SCE Interconnection Facilities MonthlY Rate Facilities Cost Charge Based on Actual Cost %
Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tarin: Second Revised Volume No. (,
Service Agreement No. 59 Substitute Original Sheet No. 43

INTERCONNECTION FACILITIES AGREEMENT BETWEEN

THE CITY OF RIVERSIDE
AND
SOUTHERl'! CALIFORNIA EDISON COMPANY
Exhibit C
Engineering And Construction
Payment Schedule
Costs Pursuant
to Section 14.4
Payment ISO SCE SCE Total Due Date
Period Controlled Interconnection Interconnection Payment Facilities Facilities Facilities One-
Payment Time Cost
I $109.000 $ 146,000 $0 $ 255.000* April 21, 2006
2 $109.000 $ 146.000 $0 $ 255.000* July 21.2006
3 $109,000 $ 146,000 $0 $ 255,000* October 23,
2006
4 $109,000 $ 146,000 $0 $ 255,000* January 22,
2007
5 $109.000 $ 146,000 $0 $ 255,000* April 23. 2007
6 $109,000 $ 146,000 $0 $ 255,000* July 23, 2007
7 $109,000 $ 146,000 $0 $ 255,000* October 21,
2007
8 $109,000 $ 146,000 $0 $ 255,000* January 21,
2008
9 $109.000 $ 146,000 $0 $ 255.000* April 23. 2008
10 $109.000 $ 146.000 $0 $ 255,000* July 21, 2008
II $0 $ 296,000 $ 49,000 $ 345,000 December 24,
2009
12 $0 $787,000 $424,000 $1,211,000 March 1,2010
13 $0 $524,000 $281.000 $805,000 June 1.2010
14 $0 $ 417,000 $184,000 $ 601,000 September I,
2010
15 $0 $ 428,000 $69,000 $ 497,000 December I,
2010
16 $0 $315,000 $0 $315,000 March 1,2011
17 $0 $194,000 $0 $194,000 June I, 20ll
18 $0 $153,000 $0 $153,000 September I,
2011
19 $0 $101,000 $0 $101,000 December I,
2011
20 $0 $75.000 $0 $75.000 March 1,2012
Total $1.090,000 $4,750,000 $1,007,000 $6,847,000
*Payments received pursuant to the Letter Agreement.

Issued by: James A. Cuillier
Director ofFERC Rates & Regulation
Issued on: Effective:

Southern California Edison Company
FERC Electric Tariff, Second Revised Volume No.6
Service Agreement No. 59 Substitute Original Sheet No. 44

INTERCONNECTION FACILITIES AGREEMENT BETWEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY
ExhibitD
Wildlife Substation One-Line
Diagram
r-------,

1. ~"

MIRA LIN
22CICY IIIlTH IllS
VISTA
~~
r-- -----,
1 ~ "I
0-3 0-3 10-3
I I~ I ~., L_ ~"~ , 22CICY SIXIT'H IIIS-:

I I
I I
I I
I I_ ~= -:::::::d L.=.-.=. ..d _ ~ __
emfF RMlSDE
r-"'··
em ID.I
22OI6IKY TH. Be.
- SCE IIl'TERaItECTIl»lFACILITIES
Issued by: James A. Cuillier
Director ofFERC Rates & Regulation
Issued on:
y_.....
em 11).2
220IBY TH. IIC.

IILIl.IFESUlSTATI1II

ONE LINE FORFACILITIES STUDY
Effective:

Southern Calili.1rniaEdison Company
FERC Electric Tariff. Second Revised Volume No. (,
')ervice Agreement No. 59 Substitute Original Sheet No. 45 INTERCONNECTION FACILITIES AGREEMENT BET\VEEN

THE CITY OF RIVERSIDE
AND

SOUTHERN CALIFORNIA EDISON COMPANY
Exhibit E
Riverside \Vilderness Substation One-Line Diagram
1M
-....
--t.........---i---e----+- .......""'-+.........- .......--+----t-.--''-fr/- --,
lIIIC
~ 'I's AlE ",m CI2!lIlII -'1l115lia&71ll5V
r. J.ID.[Il M!Il ClIlI'II!CC1Itf a\tl!:l:III[
Ill'lEI!ClIKCTIlWflltUl%:
'JlLlDICS l!!!lII6Q(V SUJS1ATIIIN
IJIl[JlI:lIIIC[ rllClLllm·.LX
• 1IAIE·2II\
.. • 1'.

Issued by: James A. Cuillier
Director of FERC Rates & Regulation
Issued on: Effective:

W ATE ",I ENE R G Y I l I f E
J

PUBLIC UTILITIES

BOARD OF PUBLIC UTILITIES
AGENDA
Friday, February 20,2009
8:30 a.m.

PUBLIC UTILITIES BOARD ROOM, 3901 ORANGE STREET
Public Utilities Administration Office - 951-826-5781
Board Members:

Dave Barnhart - Chair
Bob Stockton - Vice Chair
Joe Tavaglione
Ken Sutter
Mary Curtin
Robert Elliott
Bernie Titus
Ian Davidson
Manny Sanchez

MISSION STATEMENT
The City of Riverside Public Utilities Department is committed to the highest quality water and electric services at the lowest possible rates to benefit the community

FAREWELL BREAKFAST
A Farewell Breakfast honoring
Board Members Joe Tavaglione and Dave Barnhart
is scheduled to begin at 8:00 a.m. in the Public Utilities Board Room.

PLEASE NOTE:

BUDGET WORKSHOP FOLLOWING MEETING
Approximate Time: 1 Hr

PLEDGE OF ALLEGIANCE TO THE FLAG
The following information and recommendations pertaining to Riverside Public Utilities are submitted for your information and action:

MINUTES

1. Approval of the regular meeting minutes from the Board of Public Utilities meeting held on February 6, 2009.

CITIZENS PARTICIPATION
If you would like to speak regarding a matter not on the printed Agenda, please come forward and stand until recognized by the Chair.

The City of Riverside wishes to make all of its public meetings accessible to the public.

Upon request, this agenda will be made available in appropriate altemative formats to persons with disabilities, as required by Section 202 of the Americans with Disabilities Act of 1990. Any person who requires a modification or accommodation in order to participate in a meeting, should direct such request to the City's ADA Coordinator at (951) 826-5427 or TOO at (951) 826-5439 at least 72 hours before the meeting, if possible.

Agenda related writings or documents provided to the Board of Public Utilities are available for public inspection in a binder located in the lobby/meeting room while the Board of Public Utilities is in session.

J Page 2
Regular Meeting of the Board of Public Utilities
Friday, February 20,2009

COMMITTEE REPORTS

2. PROPERTY COMMITTEE REPORT - February.6, 2009

3. ELECTRIC COMMITTEE REPORT - The Electric Committee meeting scheduled on February 11, 2009 was cancelled
CONSENT CALENDAR - (Items 4 to 9)
Consent Calendar items are expected to be routine and non-controversial. They will be acted upon by the Board at one time without discussion. If any Board member, staff member, or interested person requests that an item be removed from the Consent Calendar, it will be considered by the Board in separate action.

Electric Items

4. UNDERGROUND ELECTRIC LINE EXTENSION - FRANK AUGUSTUS MIDDLE SCHOOL - WORK ORDER NO. 080003- 96
That the Board of Public Utilities approve the estimated capital expenditure of $68,000 to install an underground electric line extension to serve a new middle school located between Krameria and Alta Cresta Avenues. .".~fl ".

APPROVAL OF CHANGE ORDERS AND ADDITIONAL CONTINGENCY FOR

THE POWER DISTRIBUTION CENTER (PDC) FOR THE RIVERSIDE ENERGY RESOURCE CENTER UNITS 3 AND 4 PROJECT
That the Board of Public Utilities:

1. Approve change orders for the amount of $325,502 plus tax;

2. Approve additional contingency in the amount of $50,000; and

3. Approve an increase to Purchase Order 092195 to not exceed $3,140,811 plus sales tax.

6. FOURTEENTH STREET OVERHEAD TO UNDERGROUND CONVERSION MIRAMONTE PLACE, TO GLENWOOD DRIVE WORK ORDER NO. 080003-66 That the Board of Public Utilities approve the estimated capital expenditure of $225,000 to convert the overhead electrical facilities to underground on Fourteenth Street from Miramonte Place to Glenwood Drive. ,l.{.\liq J.NfI?Gf I;":

RIVERSIDE PUBLIC UTILITIES
Board MemorandumPUBLIC UTILITIES
BOARD OF PUBLIC UTILmES
SUBJECT:

DATE: February 20, 2009
ITEM NO: 14

INTERCONNECTION FACILITIES AGREEMENT (IFA) BETWEEN SOUTHERN

CALIFORNIA EDISON (SCE) AND THE CITY OF RIVERSIDE (CITY) o
ISSUE:

Consideration of an Interconnection Facilities Agreement ("IFA") with the Southern California Edison Company ("SCE") and the City of Riverside ("City").

RECOMMENDATIONS:

That the Board of Public Utilities recommend that the City Council:

1. Approve the proposed IFA between SCE and the City; and

2. Authorize the City Manager, or his designee, to execute the IFA for filing with the Federal Energy Regulatory Commission ("FERCD).

BACKGROUND:

Except for 136 megawatts of peaking internal generation facilities, all power used to serve the City's retail energy needs is transmitted through a single point of interconnection to the state's high voltage transmission grid at SCE's Vista substation ("Vistaj. The capacity of the Vista substation is 560 megawatts. The City's historic peak is 610 megawatts, with projected growth expected to continue to exceed Vista's import capability.

In 2002, the City requested that SeE perform the system studies necessary to either increase the capacity of the Vista substation or construct a second point of interconnection to the state's grid. The latter option, construction of the Riverside Transmission Reliability Project ("RTRpD), was selected due to the economic benefits and increased system reliability it would provide.

In late 2004, the City submitted to SCE its application for the RTRP second point of interconnection. In early 2006, the City approved an Interim Agreement with SCE to fund continued deVelopment of the RTRP while the rates, terms and conditions of a definitive IFA were negotiated. Also in 2006, representatives from Power Resources, Utility Finance and the City Attorney's Office began working with SCE's staff to draft an IFA specifying the rates, terms and conditions for construction and operation of the RTRP.

After lengthy negotiations with SCE, most of the issues were satisfactorily resolved. However, several O
significant issues remained. Believing that further negotiations were not likely to resolve the remaining issues, on June 5, 2008, the City formally requested that SCE file an unexecuted IFA with the FERC, invoking FERC's assistance in resolving the remaining issues. On July 7, 2008, SCE complied with the City's request. The as-filed IFA became effective September 6, 2008, subject to further review and modification by the FERC, and superseded the Interim Agreement.

A settlement conference was held in Washington DC on September 24-25, 2008. With assistance from a FERC Administrative law Judge, the City's staff and representatives from SCE were able to resolve many of the remaining issues.

The City and SCE have since worked diligently to resolve the few remaining issues. Those remaining issues have been resolved satisfactorily to the City, and staff is now recommending approval and execution of the attached IFA.

FISCALIMPACT:

The total estimated cost for SCE's interconnection and transmission facilities related to the RTRP is $56.7 million. Under the IFA, the City is required to pay all of SCE's costs, currently estimated to be up to $49.3 million, until all regUlatoryapprovals for the project are obtained by SCE.

The estimated $49.3 mUlion is attributable to SCE's costs to construct network transmission facilities and will be recovered by the CAISO from all CAISO grid users pursuant to the CAISO's FERC-approved tariff. Facilities that the CAISO determines provide benefit only to the City's customers mJst be recovered from the City's electric customers, and are estimated to be $7.4 million. Bond financing for the City's portion of the total project has been included in the most recently approved Electric Utility Rate Plan.

Upon placing the facilities into service, currently estimated to be 2012, the City will be required to fund the prospective costs for operation and maintenance of the SCE facUitiesthat only beneR the City. The initial costs to operate and maintain those facilities are estimated to be approximately $16,000 per month and will change over time to reflect changes in SCE's operation and maintenance costs. The projected costs will be incorporated into the Public Utilities budget.

Prepared by: Gary L. Nolff, Public Utilities Assistant General ManagerlResources Approved by: David H. Wright, Public Utilities General Manager Approved by: Belinda J. Graham, Assistant City Manager
Approved as to form: Gregory P. Priamos, City Attorney
Attachments: Interconnection Facilities Agreement
2 o
o
..

CITYCOUNCIL
AND

REDEVELOPMENTAGENCY
AGENDA
TUESDA ~ MARCH 3, 2009

ART PICK COUNCIL CHAMBER, CITY HALL
3900 MAIN STREET, RIVERSIDE, CA 92522
CITY CLERK'S OFFICE 951-826-5557

MISSION STATEMENT
The City of Riverside is committed to providing high quality municipal services to ensure a safe, inclusive, and livable community
PLEASE NOTE--The numerical order of items on this agenda is for convenience of reference. Items may be taken out of order upon request of the Mayor or Members of the City Council and Redevelopment Agency.

Pursuant to the City Council Meeting Rules adopted by Resolution No. 21553, the Members of the City Council and the public are reminded that they must preserve order and decorum throughout the Meeting. In that regard. Members of the City Council and the public are advised that any delay or disruption in the proceedings or a refusal to obey the orders of the City Councilor the presiding officer constitutes a violation of these rules.

SPEAKER CARDS-If you wish to address the City Council please complete and submit a speaker card to the City Clerk before the scheduled meeting time. Speaker cards can be found at the east entrance to the City Council Chamber and City Hall lobby. Speaker cards will be accepted until the agenda item is called.

In accordance with the Public Records Act, any information you provide on this form is available to the public. 6:30 P.M.--CITY COUNCIL/REDEVELOPMENT AGENCY

MAYOR CALLS MEETING TO ORDER

INVOCATION

PLEDGE OF ALLEGIANCE TO THE FLAG

1. Mayor Loveridge to present a Proclamation to Keep Riverside Clean & Beautiful Executive Director Connie Librenjak recognizing Riverside Celebrates Trees LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk.

The City of Riverside wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by Section 202 of the Americans with Disabilities Act of 1990. Any person with a disability who requires a modification or accommodation in order to participate in a meeting, should direct such request to the City's ADA Coordinator at (951) 826-5427 or TDD at (951) 826-5439 at least 72 hours before the meeting, if possible.

Agenda related writings or documents provided to the City Council are available for public inspection in the Office of the City Clerk, at www.riversideca.gov, and in the binder located at the Concierge desk in the City Hall lobby while the meeting is in session.

CITY COUNCIUREDEVELOPMENT AGENCY

2. Mayor Loveridge to call upon Martin Luther King Walk-A-Thon Chair Ralph Rivers to present certificates of appreciation to the City

3. City Clerk to administer Oath of Office to newly appointed Board and Commission members DISCUSSION CALENDAR- This portion of the City Council's Agenda is for all matters where staff and public participation is anticipated. Audience participation is encouraged.

PLEASE NOTE-Individual audience participation is limited to 3 minutes.

4. Photovoltaic Rebate Program update - City National Bank rebate of $127,569 from Business Photovoltaic Rebate Program Account for installation of 42.5 kilowatt photovoltaic system ­ 3484 Central Avenue (All Wards)

5. Public Comment Period - This is the portion of the meeting specifically set aside to invite your comments regarding any items on City Council Consent Calendar, joint Consent items with the Redevelopment Agency, closed sessions, or matters within the jurisdiction of the City Council ­ Individual audience participation is limited to 3 minutes, and you will be asked to state your name and city of residence.

CONSENT CALENDAR--AII matters listed under the CONSENT CALENDAR are considered routine by the City Council and may be enacted by one motion in the form listed below. There will be no separate discussion of these items unless, before the City Council votes on the motion to adopt, Members of the City Councilor staff request specific items be removed from the Consent Calendar for separate action.

Removed consent items will be discussed immediately after adoption of the balance of the Consent Calendar.

City Clerk

6. Joint item with Redevelopment Agency - Minutes of February 24, 2009 City Council

7. Announcement of committee meeting
a. Governmental Affairs Committee at 3 p.m. on Wednesday, March 4, 2009, Mayor's Ceremonial Room
Community Development

8. Case POa-0859 - City of Riverside - Amendment to Title 18 (Subdivision Code) and Title 19 (Zoning Code) pursuant to terms of settlement with The Friends of Riverside's Hills - Adopt an Ordinance of the City of Riverside, California, amending Title 18, Article V, Chapter 18.210 Development Standards, Chapter 18.230 Modifications, and Article VI, Chapter 18.260 Definitions, of the Riverside Municipal Code - Adopt an Ordinance of the City of Riverside, California, amending Title 19, Article V, Table 19.100.040A, Article V, Table 19.1oo.040B Notes, Article IX, Chapter 19.780 Planned Residential Development Permit, Sections 19.780.010, 19.780.040, 19.780.050, and 19.780.060, and Article X, Sections 19.910.130 and 19.910.200, Definitions, of the Riverside Municipal Code - Waive further readings (Intro. on 2-24-09, All Wards)
2 .,

CITY COUNCIL

9. Case P08-0823 - Willie E. Robinson - Rezone approximately .5-acre lot partially developed with single-family residence from R-1-7000-Single-Family Residential to CR-Commercial Retail Zone - Adopt an Ordinance of the City of Riverside, California, amending the zoning map of the City of Riverside pursuant to Chapter 19.090 of the Riverside Municipal Code by rezoning land from Zone R-1-7000 to Zone CR - 3345 Madison Street - Waive further reading (Intro. on 2-24-09, Ward 4)

10. Case P08-0946 - City of Riverside - Vacate approximately five-foot-wide by 212-foot-long pedestrian walkway - A Resolution of the City Council of Riverside, California, declaring its intention to vacate an approximately 5-foot-wide by 212-foot-long pedestrian walkway, connecting San Marcos Avenue to Madison Street, and setting the date, hour and place of hearing, pursuant to the Public Streets, Highways, and Service Easements Vacation Law - Between 3907 and 3917 San Marcos Avenue and 3908 and 3918 Madison Street - Waive further reading - Schedule public hearing for March 24, 2009, at 3 p.m. (Ward 3)
Development

11. Riverside Renaissance - Purchase and Sale Agreement with Vidisch Realty Corporation for $523,100 for acquisition and $3,000 for title, escrow, and related closing costs from Magnolia Avenue Underpass Project Account for right-of-way and temporary construction easement for Magnolia Avenue Grade Separation Project - 6491 Magnolia Avenue (Ward 3)

12. This item was removed from the Agenda
Public Utilities

13. Interconnection Facilities Agreement with Southern California Edison specifying rates, terms, and conditions for construction and operation of Riverside Transmission Reliability Project (All Wards) Public Works

15. First Amendment to Agreement with HDR Engineering, Inc., for not-to-exceed $368,332 and Agreement with AMEC Geomatrix, Inc., for $100,500 and $25,125 for additional services as needed from Public Works Department budget for design and environmental engineering, respectively, for Magnolia Avenue Grade Separation Project (Wards 1 and 3)

MAYOR/COUNCILMEMBER COMMUNICATIONS

16. Legislative report
a. League of California Cities - City Advocate Weekly of February 20, 2009 b. State Budget update

17. Status report for regional organization
a. Mayor Loveridge - Western Riverside Council of Governments

18. Brief reports on conferences, seminars, and meetings attended by Mayor and City Council

19. Items for future City Council consideration as requested by Mayor or Members of the City Council ­ City Manager Reports
agn_03-03.doc 3

CITY COUNCIL
CLOSED SESSIONS - Time listed is approximate. The City Council may adjourn to the below listed Closed Sessions at their convenience during this City Council meeting.

20. City Council - Pursuant to Government Code §54956.9(a) to confer with and/or receive advice from legal counsel concerning Randal Hecht v. City of Riverside, WCAB Claim Nos. RIV 30473, 10239, and 79965

21. City Council - Pursuant to Government Code §54956.9(c) to confer with and/or receive advice from legal counsel concerning one case of anticipated litigation

22. City Council - Pursuant to Government Code §54956.9(c) to confer with and/or receive advice from legal counsel concerning one case of anticipated litigation

23. City Council - Pursuant to Government Code §54956.9(c) to confer with and/or receive advice from legal counsel concerning one case of anticipated litigation

24. City Council- Pursuant to Government Code §54957.6 to review the City Council's position and instruct designated representatives regarding salaries, salary schedules, or compensation paid in the form of fringe benefits of all Executive Management employees, all Management and Confidential employees as defined by PERS, Fire Management Unit, Riverside City Firefighters Association, Riverside Police Officers Association (Police and Police Supervisory Units), Service Employees International Union #721, International Brotherhood of Electrical Workers #47, and Riverside Police Administrators Association

25. City Attorney report on Closed Session discussions
The following meetings are scheduled for Tuesday, March 10, 2009:

City Council at 1 p.m. for closed sessions
Redevelopment Agency at 2 p.m.

City Council at 6:30 p.m. for Discussion and Consent Calendars City Council meetings broadcast on AT&T Channel 99 and
Charter Communications Channel 3 - Closed captioning available Rebroadcast Wednesdays at 4 p.rn. and Saturdays at 9 a.m.

For live Webcast of the City Council Meeting:
http://65.49.32.146/ppportal/agenda/webcast.aspx
or visit our website at
www.riversideca.gov

LET FREEDOM RING
4 Office of the
City Clerk
I hereby certify, under penalty of perjury, that the City Council/Redevelopment Agency Agenda scheduled for 6:30 p.m. on Tuesday, March 3, 2009, was posted in the case outside the main entrance of City Hall at 4:20 p.m. on Thursday, February 26, 2009.

Executed on February 26,2009, at Riverside, California.

G:\clk\agendas\posting affidavits
3900 Main Street· Riverside. CA 92522 • 951.826.5557 • www.r1versideca.gov o
~----------'
(IT.,. ()~
l'l V ER,,') I DL City Council Memorandum
11111111111111111111111111111111111111111111111111111111111111111111111111111111II111IUUlUUUUUlIIUUlIIIIIIIIIIIIIIlII1I111IIUUIIIIIIIIIIIIIIIUIIIIIIIIIIUUUlUUUuumIllIIlIlIlIllIllIiUIIUUUIIUM ..IIIM"MUIIUIlIUUUIUUUUMIIIIIIIIIUIIUIIIIIUIUUIIllUI ..UIIli TO:

FROM:

HONORABLE MAYOR AND CITY COUNCIL

PUBLIC UTILITIES DEPARTMENT
DATE: MARCH 3, 2009
ITEM NO: 13
WARD: ALL
SUBJECT: INTERCONNECTION FACILITIES AGREEMENT (IFA) BETWEEN SOUTHERN

CALIFORNIA EDISON (SCE) AND THE CITY OF RIVERSIDE (CITY) ISSUE:

Consideration of an Interconnection Facilities Agreement ("IFA") with the Southern California Edison ("SCE") and the City of Riverside ("City").

RECOMMENDATIONS:

That the City Council:

1. Approve the proposed IFA between SCE and the City; and

2. Authorize the City Manager, or his designee, to execute the IFA for filing with the Federal Energy Regulatory Commission ("FERC").

BOARD RECOMMENDATIONS:

The Board of Public Utilities recommended that the City Council approve this item at its regularly scheduled meeting on February 20,2009.

BACKGROUND:

Except for 136 megawatts of peaking internal generation facilities, all power used to serve the City's retail energy needs is transmitted through a single point of interconnection to the state's high voltage transmission grid at SCE's Vista substation ("Vista"). The capacity at Vista is 560 megawatts; the City's historic peak is 610 megawatts, with projected growth expected to continue to exceed Vista's import capability.

In 2002, the City requested that SCE perform the system studies necessary to either increase the capacity of the Vista substation or construct a second point of interconnection to the state's grid.

The latter option, construction of the Riverside Transmission Reliability Project ("RTRP"), was selected due to the economic benefits and increased system reliability it would provide.

In late 2004, the City submitted to SCE its application for the RTRP second point of interconnection.

In early 2006, the City approved an Interim Agreement with SCE to fund continued development of 13-1
Council Memorandum. Page 2
the RTRP while the rates, terms and conditions of a definitive IFA were negotiated. Also in 2006, representatives from Power Resources, Utility Finance and the City Attorney's Office began working with SCE's staff to draft an IFA specifying the rates, terms and conditions for construction and operation of the RTRP.

After lengthy negotiations with SCE, most of the issues were satisfactorily resolved. However, several significant issues remained. Believing that further negotiations were not likely to resolve the remaining issues. on June 5,2008, the City formally requested that SCE file an unexecuted IFA with the FERC, invoking FERC's assistance in resolving the remaining issues. On July 7,2008, SCE complied with the City's request. The as-filed IFA became effective September 6,2008, subject to further review and modification by the FERC, and superseded the Interim Agreement.

A settlement conference was held in Washington DC on September 23-24, 2008. With assistance from a FERC Administrative Law Judge, the City's staff and representatives from SCE were able to resolve many of the remaining issues.

The City and SCE have since worked diligently to resolve the few remaining issues. Those remaining issues have been resolved satisfactorily to the City, and staff is now recommending approval and execution of the attached IFA.

FISCAL IMPACT:

The total estimated cost for SCE's interconnection and transmission facilities related to the RTRP is $56.7 million. Under the IFA, the City is required to pay all of SCE's costs, currently estimated to be up to $49.3 million, until all regulatory approvals for the project are obtained by SCE.

The estimated $49.3 million is attributable to SCE's costs to construct network transmission facilities and will be recovered by the CAISO from all CAISO grid users pursuant to the CAISO's FERC­ approved tariff. Facilities that the CAlSO determines provide benefit only to the City's customers must be recovered from the City's electric customers, and are estimated to be $7.4 million. Bond financing for the City's portion of the total project has been included in the most recently approved Electric Utility Rate Plan.

Upon placing the facilities into service, currently estimated to be 2012, the City will be required to fund the prospective costs for operation and maintenance of the SCE facilities that only benefit the City. The initial costs to operate and maintain those facilities are estimated to be approximately $16,000 per month and will change over time to reflect changes in SCE's operation and maintenance costs. The projected costs will be incorporated into the Public Utilities budget.

Prepared by:

Certified as to availability
of funds:

Approved by:

Approved as to form:

David H. Wright, Public Utilities General Manager
Paul C. Sundeen, Assistant City Manager/CFOlTreasurer
Belinda J. Graham, Assistant City Manager
for Bradley J. Hudson, City Manager
Gregory P. Priamos, City Attorney
Attachments:

1. Interconnection Facilities Agreement

2. Minutes to Board of Public Utilities meeting February 20,2009 13-2

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