HomeMy WebLinkAboutResolutions - No. 2006-65RESOLUTION NO. 2006-65
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING AND AUTHORIZING THE USE OF
THE RESOURCE ADEQUACY PROGRAM
FOR THE CITY OF LODI
WHEREAS, the California independent System Operator (CAISO), in order to
insure sufficient resources to reliably serve the load in its control area, requires the
regulatory authority for each load serving entity in its control area to adopt a Resource
Adequacy Program; and
WHEREAS, the Northern California Power Agency (NCPA), in cooperation with
its members, has developed such a Resource Adequacy Program; and
WHEREAS, the NCPA Commission recommends that each of its members in the
CAISO control area adopt the Resource Adequacy Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopts and
authorizes the use of the Resource Adequacy Program attached hereto marked
Exhibit A.
Dated: April 19, 2006
I hereby certify that Resolution No. 2006-65 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 19, 2006, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, Johnson, Mounce,
and Mayor Hitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS ® None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J.
City Clerk
2006-65
CKSTON
EXHIBIT A
RESOURCE ADEQUACY PROGRAM FOR THE CITY OF LODI
The City Council for the City of Lodi, California, the Local Regulatory Authority (LRA) for Lodi
Electric Utility, hereby adopts the following Resource Adequacy Program for the City's Electric
Utility. Capitalized terms not otherwise defined herein shall be defined as set forth in the Master
Definitions Supplement of the California Independent System Operator Corporation ("CAISO").
This Resource Adequacy Program shall remain in effect, subject to modification by the City
Council until the implementation of the CAISO's Market Redesign and Technology Upgrade
("MRTU") Tariff.
1 RESOURCE ADEQUACY
1.1 Submission of Annual Resource Adequacy Plan
Northern California Power Agency ("NCPA") will submit an annual Resource Adequacy Resource
Plan to the CAISO, as the Scheduling Coordinator, on behalf of the NCPAB members on a
schedule and in the format set forth by the NCPAB member LRA. For the purpose of this Section
1, NCPAB members include those MSS Operator entities identified in Schedule 18 of the Metered
Subsystem Aggregator Agreement. The annual Resource Adequacy Plan should include the
NCPAB members Demand Forecasts for each of the five summer months (May -- September),
established in Section 1.5, and identify the Resource Adequacy Qualified Capacity, established
under Section 1.9, that the NCPAB members will rely upon to satisfy 90% of each of the five
summer months Demand Forecasts plus the monthly Planning Reserve Margin, established
under Section 1.6, for the relevant reporting year.
1.2 Submission of Monthly Resource Adequacy Plan
NCPA will submit a monthly Resource Adequacy Plan to the CAISO, as the Scheduling
Coordinator, on behalf of the NCPAB members by the last business day of the second month
prior to the compliance month and in the form set forth by the NCPAB member LRA. The
monthly Resource Adequacy Plan should include the NCPAB members monthly Demand
Forecast, established in Section 1.5, and identify the Resource Adequacy Qualified Capacity,
established under Section 1.9, that the NCPAB members will rely upon to satisfy the monthly
Demand Forecast plus the monthly Planning Reserve Margin, established under Section 1.6, for
the relevant reporting month.
1,3 Submission of Supply Plan
Scheduling Coordinators representing Resource Adequacy Resources supplying Resource
Adequacy Qualified Capacity are required, pursuant to the CAISO Tariff, to provide the CAISO
with annual and monthly Supply Plans. NCPA wilt submit an annual Supply Plan to the CAISO
on behalf of the NCPAB members and Silicon Valley Power ("SVP") on a schedule and in the
format set forth by the NCPA member LRA. NCPA will submit a monthly Supply Plan to the
CAISO on behalf of the NCPAB members and SVP by the last business day of the second month
prior to the compliance month and in the form set forth by the NCPAB member LRA and SVP
LRA. Both the annual and monthly Supply Plans shall include a listing of the NCPAB member's
and SVP's commitments to provide Resource Adequacy Qualified Capacity to any Load Serving
Entity for the applicable reporting period.
1.4 Resource Adequacy Plan Compliance and Enforcement:
Once the CAISO has received the monthly Resource Adequacy Plan submitted by NCPA on
behalf of its NCPAB members, the CAISO will verify that the NCPAB members have procured
sufficient Net Qualified Capacity to comply with the Planning Reserve Margin, established in
Section 1.6. To the extent the annual or monthly Resource Adequacy Plan does not include
April 19, 2006
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Resource Adequacy Plan
sufficient Net Qualified Capacity to satisfy the Pianning Reserve Margin, established in Section
1.6, or in the case of a mismatch between information included in the annual or monthly
Resource Adequacy Pian and a Sup* Plan submitted by the Scheduling Coordinator of a
resource identified in the annual or monthly Resource Adequacy Plan, the CAISO will notify
NCPA and attempt to resolve the issue. To the extent that NCPA is unable to resolve the
identified issue, the CAISO will notify the NCPAB member LRA of the potential deficiency.
Once the NCPAB member LRA is informed of the deficiency and confirms that the NCPAB
member's annual or monthly Resource Adequacy Plan is deficient, the NCPAB member LRA may
determine if and how the deficiency will be reso/ved. If the GA1SO identifies a mismatch between
information included in the annual or monthly Resource Adequacy Plan and a Supply Plan
submitted by the Scheduling Coordinator of a resource identified in the annual or monthly
Resource Adequacy Plan, and the identified mismatch is not resolved prior to the 10th day before
the effective month, the CAISO will accept the value contained in the Supply Plan to set the Net
Qualified Capacity value for the applicable reporting month.
To the extent that a NCPAB member LRA requires its NCPAB member to resolve an identified
deficiency in the annual or monthly Resource Adequacy Plan, and the NCPAB member has not
resolved the identified deficiency, the NCPAB member must explain why the identified deficiency
has not been resolved to its LRA, and possibly incur penalties or other sanctions adopted by the
LRA. NCPA is required to report to the CAISO within thirty (30) clays of any action taken by the
appropriate LRA in response to the deficiency notification if the LRA does not provide public
access to records or information regarding action taken for violations of its Resource Adequacy
policies or rules.
1,5 Demand Forecasts
The monthly Demand Forecast included in the annual and monthly Resource Adequacy Plan
shall be based on the monthly peak Demand responsibility of the NCPAB members that is
consistent with the forecasts provided to the CAISO under Section 6.1 of the Metered Subsystem
Aggregator Agreement. For the purposes of Section 1, Demand shall be equal to Load plus firm
Exports plus any NCPAB member on -demand obligation to third parties, measured in megawatts.
For the purposes of this Section 1.5, the peak Demand responsibility shall be equal to the
aggregated NCPAB member coincident peak Demand Forecast for the relevant month
irrespective of the CAISO system coincident peak.
1.6 Planning Reserve Margin
The annual and monthly Resource Adequacy Plan will include a Planning Reserve Margin equal
to no less that 15% of the monthly peak Demand responsibility set forth in Section 1.5.
1,7 ISO Authority to Dispatch NCPA Resources
The CAISO's authority to Dispatch any portion of the capacity of any Generating Unit of NCPA,
other than in accordance with a bid submitted to the CAISO by NCPA's Scheduling Coordinator,
is set forth in and subject to Section 7.1 of the Metered Subsystem Aggregation Agreement.
1.8 Resource Adequacy Qualified Capacity
Resource Adequacy Qualified Capacity shall be the quantity of capacity from a resource stated in
megawatts which is listed in the annual and/or monthly Resource Adequacy Plan. Qualified
Capacity is the capacity from a resource prior to the application of the Net Capacity determination
that shall be made pursuant to the provisions of the CAISO Tariff. The criteria for determining the
types of resources that may be eligible to provide Qualified Capacity and for calculating Qualified
Capacity from eligible resource types is provided in Section 1.9.
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1.9 Qualified Capacity Criteria
1.9,1 Net Dependable Capacity
Net Dependable Capacity ("NDC") defined by North American Electric Reliability Council
('NERC') Generating Availability Data System ("GADS") information will be used to determine the
Qualified Capacity of some of the resource types identified in Section 1.9. For the purpose of
Section 1.9, NDC is equal to Gross Dependable Capacity ("GDC") less the unit capacity utilized
for the unit station service or auxiliaries. GDC is equal to Gross Maximum Capacity ("GMC")
modified for seasonal limitations over a specified period of time. GMC is the maximum capacity a
unit can sustain over a specified period of time when not restricted by seasonal or other
deratings.
1,9.2 NCPA System
As defined in the Metered Subsystem Aggregator Agreement, the NCPA System means all
transmission and distribution facilities owned or controlled by the NCPA MSS members, and all
Generating Units within the ISO Control Area owned or controlled by NCPA members.
1.9.3 Jointly -Owned Facilities
A jointly -owned facility must either be identified in Schedule 14 of the Metered Subsystem
Aggregation Agreement, located within the NCPA System, a Participating Generator, or a
Qualified Facility to be considered Qualified Capacity. The Qualified Capacity for the entire
facility will be determined based on the type of resource as described elsewhere in Section 1.9,
The NCPAB member's entitlement to the Qualified Capacity of the facility may encompass the
entire Qualified Capacity of the facility, or may be limited to a portion of the Qualified Capacity of
the facility. The total amount of Qualified Capacity that may be identified in the annual and or
either the monthly Resource Adequacy Plan is limited to the total jointly -owned facility Qualified
Capacity determined in Section 1.9.
1.9.4 Thermal
Thermal generating facilities must either be identified in Schedule 14 of the Metered Subsystem
Aggregation Agreement, located within the NCPA System, a Participating Generator, or a
Qualified Facility to be considered Qualified Capacity. Thermal generating facilities that are not
required to sign a Participating Generator Agreement pursuant to Section 2.2.1 of the CAISO
Participating Generator Agreement are also eligible to be identified as Qualified Capacity. The
Qualified Capacity of thermal facility will be based on Net Dependable Capacity as defined in
Section 1.9.1.
1.9.5 Hydro
Hydro generating facilities must either be identified in Schedule 14 of the Metered Subsystem
Aggregation Agreement, located within the NCPA System, a Participating Generator, or a
Qualified Facility to be considered Qualified Capacity, The Qualified Capacity of a pond or
pumped storage hydro facility will be based on Net Dependable Capacity as defined in Section
1.9.1, minus variable head de -rate based on current reservoir levels with dry year (1 -in -5 dry
year) forecasted inflows. The Qualified Capacity of a run -of -river hydro facility will be based on
Net Dependable Capacity as defined in Section 1.9.1, minus actual or forecasted conveyance
flow, stream flow, or canal head de -rate.
1.9.6 Unit -Specific Contracts
Unit -specific contracts will fully qualify as Resource Adequacy Qualified Capacity. The generating
facility identified in the contract must either be identified in Schedule 14 of the Metered
April 19, 2006
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Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator,
or a Qualified Facility to be considered Qualified Capacity. The generating facilities identified in
the contract that are not required to sign a Participating Generator Agreement pursuant to Section
2,2.1 of the CAISO Participating Generator Agreement are also eligible to be identified as
Qualified Capacity.
1.9.7 Firm Physical Contracts
Firm energy contracts which contain provisions to ensure reliable physical delivery and that do
not contemplate frequent financial settlement for non-delivery, or that contain provisions that
identify non-delivery as a default condition subject to contract termination, will fully qualify as
Resource Adequacy Qualified Capacity.
1.9.8 industry Standard Contracts with Liquidated Damages Provisions
Firm energy contacts with liquidated damages provisions as generally reflected in Service
Schedule 0 of the Western Systems Power Pool Agreement or the Firm LD product of the Edison
Electric Institute pro forma agreement, or any other similar firm energy contract that provides the
seller an option not to deliver based on economic reasons wiil count as Qualified Capacity until a
commercially available industry standardized capacity based product is readily available, and
which is provided under an agreement similar to the Western Systems Power Poo! Agreement or
the Edison Electric Institute pro forma agreement.
1.9.9 Wind and Solar
The Qualifted Capacity of firm wind and solar generating facilities, with backup sources of
generation, will be based on Net Dependable Capacity as defined in Section 1.9.1.
Wind and solar generating facilities without backup sources of generation must be participants in
the CAISO's Participating Intermittent Resource Program ("PIRP"). The Qualified Capacity of
wind and solar facilities without backup sources of generation will be based on their monthly
historic noon to 6:00 p.m. capacity factor, using a three-year rolling average.
New wind and solar generating facilities without backup sources of generation which do not have
three years of historic performance data will be assigned a default Qualified Capacity for each
year of missing historical performance as follows:
(1) the Qualified Capacity of another solar or wind generator with historic data
located in the same weather regime with similar technology adjusted for the
nameplate capacity ratio of a new generator and the similarly situated proxy
generator.
The default Qualified Capacity values will be replaced on a year by year basis with actual
performance data as the data becomes available to form a three year rolling average.
1.9,10 Geothermal
Geothermal generating facilities must ether be identified in Schedule 14 of the Metered
subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator,
or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity of a
geothermal facility will be based on Net Dependable Capacity as defined in Section 1,9.1,
adjusted for steam field degradation.
April I 9, 2006
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1.9.11 Treatment of Qualified Capacity of QFs
The NCPAB members do not currently have any Qualifying Facilities ("QFs") with effective
contracts under the Public Utility Regulatory Policies Act as of the drafting of this document.
Therefore, the NCPAB members LRA have not identified Qualified Capacity Criteria in Section
1.9 for Qualifying Facilities. If in the future the NCPAB members decide to acquire and identify
Qualified Capacity in either the annual or monthly Resource Adequacy Pian sourced from
Qualifying Facilities, the NCPAB members LRA reserves the right to establish Qualified Capacity
Criteria in Section 1.9,
1.9.12 Dispatchabie Demand Resource and Participating Loads
Dispatchable Demand resources and Non-Dispatchable Demand resources must either be
identified in Schedule 10B of the Metered Subsystem Aggregation Agreement or located within
the NCPA System to be considered Qualified Capacity. Participating Loads must either be
identified in Schedule 14 of the Metered Subsystem Aggregation Agreement or located within the
NCPA System to be considered Qualified Capacity. Dispatchable Demand resources, Non-
Dispatchable Demand resources, and Participating Loads must be available at least 48 hours
during the five summer months (May — September) to be counted in either the annual or monthly
Resource Adequacy Plan as Qualified Capacity. if a Dispatchable Demand resource or
Participating Load is available for the minimum requirement, the megawatt quantity reduction
stipulated in the contract or program will be treated as supply and be eligible to be listed as
Qualified Capacity. if a Non-Dispatchable Demand resource is available for the minimum
requirement, the megawatt quantity reduction stipulated in the contract or program, adjusted to
reflect the contract or programs average historical performance, will be treated as supply and be
eligible to be listed as Qualified Capacity.
1.9.13 Facilities Under Construction
The Qualified Capacity for facilities under construction will be determined based on the type of
resource as described elsewhere in Section 1.9, The facility will be eligible to be identified as
Qualified Capacity in the annual or monthly Resource Adequacy Plan of the NOPAB members
pursuant to the anticipated operational date of the facility.
19.14 Dynamically Scheduled System Resources
The Qualified Capacity of a Dynamically Scheduled System Resource to which the NCPAB
member has an entitlement shall be the amount of the NCPAB member's entitlement, subject to
the deliverability screen pursuant to the provisions of the CABO Tariff and to, and or, the
applicable provisions of the Metered Subsystem Aggregator Agreement. Eligibility as Qualified
Capacity is contingent upon the NCPAB members securing transmission through any intervening
Control Areas for the resource entitlement that cannot be curtailed for economic reasons or
bumped by higher priority transmission. The Qualified Capacity provided by a Dynamically
Scheduled System Resource wilt be limited by the NCPAB member's allocated import capacity at
the import Scheduling Points, which is determined pursuant to the provisions of the CAISO Tariff.
1.9.15 Non -Dynamically Scheduled System Resources
The Qualified Capacity of a Non -Dynamically Scheduled Rystem Resources to which the MCPAB
member has an entitlement shall be the amount of the NCPAB member's entitlement, subject to
the deliverability screen pursuant to the provisions of the CAISO Tariff and to, and or, the
provisions of the Metered Subsystem Aggregator Agreement. The Qualified Capacity provided
by a Non -Dynamically Scheduled System Resource will be limited by the NCPAB member's
allocated import capacity at the import Scheduling Points, which is determined pursuant to the
provisions of the CAISO Tariff,
April t9, 2006
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1.9.16 NCPA System Transmission Ownership Rights
The capacity entitlement, measured in megawatts, of the NCPA system transmission ownership
rights in the CAISO Control Area at the Control Area Scheduling Points will be eligible to be
identified as Qualified Capacity in the annual and monthly Resource Adequacy Plans. The
capacity entitlement of the NCPA system transmission ownership rights in the CABO Control
Area at the Control Area Scheduling Points are listed in Schedule 13 of the Metered Subsystem
Aggregation Agreement, and include but are not limited to the COTP Terminus (as described in
the 1SO-SMUD interconnected Control Area Operating Agreement) and the Plumas-Sierra Rural
Electric Cooperative transmission ownership rights up to the Marble Substation Scheduling Point
(as described in the 1SO's Interconnected Control Area Operating Agreement with Sierra Pacific
Power Co. for the Marble Substation intertie).
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