HomeMy WebLinkAboutResolutions - No. 2007-103RESOLUTION NO. 2007-103
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE LETTER OF AGENCY DESIGNATING
NORTHERN CALIFORNIA POWER AGENCY AS LODI'S
AGENT FOR CONGESTION REVENUE RIGHTS AND
AUTHORIZING THE ELECTRIC UTILITY DIRECTOR TO
EXECUTE AND ADMINISTER THE LETTER OF AGENCY
WHEREAS, the California Independent System Operator (CAISO) plans to
implement the Market Redesign and Technology Upgrade (MRTU) project on
February 1, 2008; and
WHEREAS, a main objective of MRTU is to allow the CAISO to manage
transmission congestion with a new mechanism, called Locational Marginal Pricing
(LMP), to price the use of transmission bottlenecks; and
WHEREAS, the CAISO will allocate Congestion Revenue Rights (CRR) that can
be used by Market Participants to hedge against the cost of congestion associated with
delivering resources to serve load obligations within an LMP based market; and
WHEREAS, the Lodi Electric Utility (Lodi) qualifies as a Load Serving Entity
(LSE) under the MRTU Tariff and, therefore, is eligible to receive an allocated share of
CRR, which would benefit Lodi; and
WHEREAS, Lodi is a member of Northern California Power Agency (NCPA) and
is a signatory to the NCPA Pooling Agreement, Metered Subsystem Aggregator
Agreement (MSSA), and the Scheduling Coordinator Program Agreement (SCPA),
which establish a contractual relationship between NCPA and Lodi and encompass
many of the functions that NCPA performs on Lodi's behalf including, but not limited to,
planning, scheduling, dispatch, and settlement services; and
WHEREAS, it would benefit Lodi for NCPA to act on behalf of Lodi for all CRR
related functions, but NCPA does not qualify as an LSE and, therefore, cannot take title
to the CRR acquired on behalf of Lodi; and
WHEREAS, NCPA may acquire and administer CRR as agent of NCPA Pool
Members' who sign a Letter Representing Agency Relationship Between Load Serving
Entity and Designated Agent/Trustee (Letter of Agency) pursuant to an MSS Aggregator
CRR Entity Agent Agreement between NCPA and the CAISO (Agent Agreement); and
WHEREAS, the Letter of Agency will assign authority to NCPA to act on behalf
of Lodi and other Pool Members for CRR matters; and
t The NCPA Pool Members include Alameda Power and Telecom, City of Biggs, City of Gridley, City of
Realdsburg, City of Lodi, City of Lompoc, City of Palo Alto, Plumas-Sierra REC., Port of Oakland, and
City of Ukiah
WHEREAS, the Agent Agreement will grant NCPA rights to participate in the
CRR nomination process on behalf of NCPA Pool Members on the basis of each
member's load ratio share, which will be set forth in Schedule 3 of the Agent Agreement.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
approves the Letter of Agency designating NCPA as Lodi's agent for CRR and
authorizes the Electric Utility Director to execute, deliver to the CAISO, and administer
the Letter of Agency in substantially the form presented including any amendments that
may be necessary or convenient to carrying out Council's intent.
Dated: June 6, 2007
I hereby certify that Resolution No. 2007-103 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held June 6, 2007, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Katzakian, Mounce,
and Mayor Johnson
NOES: COUNCIL MEMBERS -- None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
A I JOHL
City Clerk
2007-103