HomeMy WebLinkAboutAgenda Report - September 18, 2019 C-14c-14AGENDA ITEM
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AGENDA TITLE:
MEETING DATE:
PREPARED BY:
Adopt Resolution Authorizing City Manager to Execute Project Agreement No. 6
Between and Among Transmission Agency of Northern California and its
Participating Members
September 18,2019
Electric Utility Director
RECOMMENDED ACT¡ON
BACKGROU ND IN FORMATION
Adopt a resolution authorizing the City Manager to Execute Project
Agreement No. 6 between and among the Transmission Agency of
Northern California and its pafticipating members.
Lodi, in addition to several other agencies, is a member of the
Transmission Agency of Northern California (TANC).
TANC, acting on behalf of Lodi and other members, has engaged in certain regulatory forums to support
Lodi and other members as it relates to exposure to transmission costs when transacting in the California
lndependent System Operator markets.
TANC has historically placed particular focus on the PG&E transmission owner rate cases. Prior costs to
Lodi for TANC's monitoring, participation, and litigation in rate cases has been allocated under other
Participating Agreement allocation percentages between TANC, Lodiand other members. Concerns have
been expressed that the benefits of TANC's efforts may be misaligned with the current cost allocation
percentages. Therefore, TANC in consultation with members, has proposed Project Agreement No. 6 as a
revised cost allocation method as it relates to future engagement in rate cases and other transmission
related activities as approved by the TANC Commission. Lodi's cost allocation will increase from 2.069
percent to 4 percent under this Agreement.
The TANC Commission will set direction for TANC's overall engagement in the scope of activities and rate
cases. The term of Project Agreement No. 6 is three years, after which time the Agreement may be
extended by unanimous vote.
FISCAL IMPACT: Approximate increase of $16,000 for Fiscal Year 2019/20. Future
costs will be accounted for as part of the annual budget process.
FUNDING AVAILABLE lncluded in Fiscal Year 2019/20 budget as part of power supply costs
-Account No.50060500.
Andrew C
Deputy City Manager/lnternal Services Director
er
Electric Utility Director
PREPARED BY: Jiayo Chiang, Electric Utility Resources Analyst
APPROVED
Stephen Manager
RESOLUTTON NO. 2019-194
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE PROJECT AGREEMENT
NO. 6 BETWEEN AND AMONG TRANSMISSION AGENCY OF
NORTHERN CALIFORNIA AND ITS PARTICIPATING MEMBERS
WHEREAS, the California Cites of Alameda, Healdsburg, Lodi, Lompoc, Palo Alto,
Redding, Roseville, Santa Clara, and Ukiah; the Modesto lrrigation District; the Sacramento
Municipal Utility District; the Turlock lrrigation District; and the Plumas-Sierra Rural Electric
Cooperative are members of the Transmission Agency of Northern California (TANC); and
WHEREAS, TANC, acting on behalf of Lodi and other members, has engaged in certain
regulatory forums to support Lodi and other members as it relates to exposure to transmission
costs when transacting in the California lndependent System Operator markets; and
WHEREAS, prior costs to Lodi for TANC's monitoring, participation, and litigation in rate
cases has been allocated under other Participating Agreement allocation percentages between
TANC, Lodi, and other members; and concerns have been expressed that the benefits of
TANC's efforts may be misaligned with the current cost allocation percentages; and
WHEREAS, TANC, in consultation with members, has proposed Project Agreement
No. 6 as a revised cost allocation method as it relates to future engagement in rate cases and
other transmission related activities as approved by the TANC Commission; and
WHEREAS, Lodi seeks to enter into Project Agreement No. 6 with TANC and
participating members to continue Lodi's representatíon in transmission owner rate cases under
a revised cost allocation for an amount not to exceed the annual amount set by the TANC
Commission for a term of three years, after which time the Agreement may be extended by
unanimous vote.
NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute Project Agreement No. 6 between and among the
Transmission Agency of Northern california and its participating members.
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I hereby certify that Resolution No. 2019-194 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held September 18, 2019, by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Kuehne, Nakanishi, and Mayor Chandler
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - Mounce
ABSTAIN: COUNCIL MEMBERS - None
IFER
2019-194
Clerk