AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute Transmission Owner Rate Case Program Agreement with Northern California Power Agency (EU)
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MEETING DATE:
June 5, 2024
PREPARED BY:
Melissa Price, Assistant Electric Utility Director
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RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute a Transmission Owner (“TO”) Rate Case Program Agreement with the Northern California Power Agency (“NCPA”).
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BACKGROUND INFORMATION:
NCPA was directed by the NCPA Commission to establish facilities, staff, and the capability to act on behalf of certain members including Lodi (“Participants”), to engage in certain activities, either directly, indirectly, or in conjunction with legal counsel and subject matter experts, pertaining to proceedings that effect transmission costs.
In response to this direction, NCPA has developed the TO Rate Case Program Agreement (“Agreement”) through which NCPA will provide certain services to Participants. Services shall include, but are not limited to:
• Representing the interests of Participants by monitoring, analyzing, and participating in TO rate cases before the Federal Energy Regulatory Commission and any related judicial appeals, where such applies to TO rate cases and new related transmission activity matters that are filed;
• Engaging in other related filings and industry developments that affect the cost or provision of transmission service under TO rate cases; and
• Engaging in other transmission cost related activities as may be approved by Participants.
With transmission costs comprising approximately 25 percent of Lodi’s annual power supply budget, it is important that NCPA continue to monitor transmission rate making policies and activities for members like Lodi. As further described in the Agreement, the City, as a Participant, will be obligated to pay its equitable share of costs associated with NCPA’s provision of services, in accordance with the Power Management and Administrative Services Agreement and the TO Agreement. Upon full execution of the TO Agreement, said Agreement shall be deemed a Special Conditions Services Agreement under the Power Management and Administrative Services Agreement by the NCPA Commission.
On April 25, 2024, the Risk Oversight Committee received a report on and recommended approval of the TO Agreement with NCPA.
STRATEGIC VISION:
5A. Infrastructure: Invest in innovative infrastructure with a high Return of Investment.
FISCAL IMPACT:
All costs incurred by NCPA under TO Agreement will be allocated to Participants based on the Program Participant Percentages (“PPP”), as reflected in Exhibit A of the TO Agreement. Lodi’s PPP is 6.28 percent, with an estimated share of costs totaling approximately $37,680 for Fiscal Year 2024/25.
FUNDING AVAILABLE:
The TO Agreement will be funded by Electric Utility Operating Funds (Fund 500) and will be appropriated as part of the annual budget process for power supply costs.
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Jeff Berkheimer
Electric Utility Director
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Melissa Munoz
Accounting Manager
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Andrew C. Keys
Interim City Manager