AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute Amendment No. 1 to Project Agreement No. 3 Between and Among Transmission Agency of Northern California and its Participating Members (EU)
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MEETING DATE:
July 1, 2026
PREPARED BY:
Jiayo Chiang, Senior Electric Utility Resources Analyst
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute Amendment No. 1 to Project Agreement No.3 between and among the Transmission Agency of Northern California and its participating members.
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BACKGROUND INFORMATION:
The Transmission Agency of Northern California (TANC) is a joint powers agency established in 1984 by a group of publicly owned utilities, including Lodi.
TANC plans, owns, and operates major electric transmission infrastructure like the California Oregon Transmission Project (COTP) to deliver cost effective energy to multiple member utilities. More recently, TANC 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 Independent System Operator (CAISO) markets.
In 2014, Lodi approved a 25-year layoff of its 26 megawatt (MW) share of COTP transmission service as the economic benefits had eroded for those entities in the CAISO Balancing Authority (BA). However, the layoff did not impact Lodi’s membership in TANC.
The TANC Project Agreement No. 3 (PA 3) authorizes TANC to act on behalf of the members in activities related to the development and operations of the COTP, which consists of electric transmission facilities between California and the Pacific Northwest.
TANC and its members now propose approval of Amendment No. 1 to modify certain provisions of PA 3 to ensure consistency with current business practices. Amendment No. 1 (i) will clarify changes to transfer capability made for the scheduling rights layoff to the Western Area Power Administration (WAPA), (ii) includes minor and non-substantive administrative updates, and (iii) updates and adds certain appendices to clarify project entitlements.
Upon expiration of a power exchange contract with Seattle City Light several years ago, Lodi Electric Utility (LEU) no longer has a need for scheduling energy through TANC. Therefore, Lodi’s share of scheduling rights is reduced to zero percent through the proposed allocations.
On May 28, 2026, the Risk Oversight Committee received a report on this item and recommended City Council approve Amendment No. 1 to Project Agreement No.3 between and among TANC and its participating members.
FISCAL IMPACT:
The estimated cost savings from the reallocation of scheduling rights will be allocated through TANC’s annual budget process. All costs and savings associated with TANC are processed through the monthly All Resources Bill from Northern California Power Agency as a power supply cost.
FUNDING AVAILABLE:
Account No. 50060500 - Power Supply.