CITY OF PASADENA APPLICATION FOR PARTICIPATING TRANSMISSION OWNER STATUS

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CITY OF PASADENA APPLICATION FOR PARTICIPATING TRANSMISSION OWNER STATUS July 15, 2004

TABLE OF CONTENTS Page No. 1. Description of Pasadena s Transmission Lines and Facilities...1 A. Overview:... 1 B. Pasadena s Transmission and Facilities Entitlements... 1 C. Pasadena s Transmission Participating Ownership Shares... 4 2. See Attachments and Appendix A...4 3. Encumbrances...4 4. Transmission Lines and Facilities to be placed under ISO s Operational Control...4 5. Reliability Criteria...5 6. Maintenance Practices...5 7. Temporary Waivers...5 8. Proposed Transmission Owner (TO) Tariff...5 9. Pasadena s TRR...5 10. Address and Contact Names...5 11. Other Information...5 12. Settlement Account...6 13. Pasadena s MWh Demand in 2003...6 14. Instructions for Encumbrances and Entitlements...6 APPENDIX A APPENDIX B PASADENA S TRANSMISSION ENTITLEMENTS PASADENA S TRANSMISSION ENCUMBRANCES i

CITY OF PASADENA APPLICATION FOR PARTICIPATING TRANSMISSION OWNER STATUS 1. Description of Pasadena s Transmission Lines and Facilities A. Overview: The City of Pasadena (Pasadena) is a Utility Distribution Company with a single point of interchange with the California ISO, the TM Goodrich 230kV/34kV interconnection in Pasadena. Pasadena transmission line ownerships and entitlements give Pasadena access to large areas in the Western Electricity Coordinating Council (WECC) region. Pasadena is a participating owner of the Pacific Northwest DC Intertie providing access to or from the Nevada Oregon Border (NOB). Pasadena s entitlement share of the Southern Transmission System Direct Current line allows Pasadena to receive and deliver Power at Mona and Gonder. As well, Pasadena s entitlement share eastward gives Pasadena access to markets at Mead/Marketplace, Westwing, and the Palo Verde Nuclear Generating Station. This network of transmission lines allows Pasadena to import power under its Hoover, Palo Verde, Intermountain Power Project, and other contracts. All of the power is delivered to SP15 at the Sylmar Alternating Current bus. Pasadena also has an existing contract with Southern California Edison Company (SCE) for delivery through SP15 from the Sylmar AC bus to the TM Goodrich substation in Pasadena. Pasadena s local distribution system within the City is entirely 34 kv or less and is not part of the transmission resources subject to the Transmission Control Agreement or Transmission Owner (TO) Tariff. B. Pasadena s Transmission and Facilities Entitlements Pasadena has the following entitlements to transmission service associated with High Voltage Transmission Facilities (see also Appendix A and Figure 1 attached thereto): 1 Southern Transmission System (STS) The STS is comprised of the Intermountain-Adelanto +500 kv direct current transmission line extending between the Intermountain Power Project and the Adelanto Switching Station. The City of Pasadena is entitled to firm bidirectional service of 113 MW. 2 Mead-Adelanto Project The Mead-Adelanto Transmission Project is comprised of a 500 kv alternating current transmission line extending between the Mead, Marketplace, and Adelanto Switching Stations. The City of Pasadena is entitled to firm bidirectional service of 70 MW. 1

City of Pasadena Application for Participating Transmission Owner Status B. Pasadena s Transmission and Facilities Entitlements (continued) 3 Mead-Phoenix Project The Mead-Phoenix Transmission Project is comprised of: a. A 500 kv alternating current transmission line extending between Westwing and Mead 500 kv Substations. The City of Pasadena is entitled to firm bi-directional service equaling 33 MW. b. A 500 kv alternating current transmission line extending between Mead 500kV Substation and Marketplace Switching Station. The City of Pasadena is entitled to firm bi-directional service equaling 60 MW. c. Additionally, Pasadena is entitled to 25 MW firm bi-directional service between the Mead 500 kv and Mead 230 kv substation. 4 Marketplace-McCullough Transmission Line The Marketplace-McCullough transmission line is a 500 kv alternating current transmission line extending between the Marketplace and McCullough Switching Stations. As part of both the Mead-Adelanto and Mead-Phoenix Transmission Projects, the City of Pasadena is entitled to 121 MW firm bidirectional service over this facility. 5 Adelanto-Victorville The Adelanto-Victorville transmission line is a 500kV alternating current transmission line between Adelanto and Victorville substations. Pasadena s entitlement, derived from Pasadena s Hoover Service Transmission Agreement with the Los Angeles Department of Water and Power (LADWP), provides for 26 MW bidirectional firm transmission service. 6 Northern Transmission System (NTS) Under contract with certain Utah participants in the Intermountain Power Project (IPP) in Delta, Utah, the City of Pasadena is entitled to firm bi-directional transmission service on the NTS, which is comprised of: a. Two 345 kv transmission lines extending between the Intermountain Power Project (IPP) and Mona Substation. The City of Pasadena is entitled to 76MW of this path; and, b. Two 230 kv transmission lines extending between IPP and Gonder Substation. The City of Pasadena is entitled to 15MW of this path. Note: Pasadena s NTS entitlements are subject to seasonal reductions resulting from the exercise of recall rights by the Utah participants. Pasadena will inform the ISO whenever Pasadena s NTS entitlement changes, or is expected to change, as a result of the Utah participants exercising their recall rights 2

City of Pasadena Application for Participating Transmission Owner Status B. Pasadena s Transmission and Facilities Entitlements (continued) 7 Sylmar T.M. Goodrich The Sylmar T.M. Goodrich transmission path is comprised of two 230kV, bidirectional transmission lines. Currently all power leaving or entering the Pasadena system through its entitlements and ownership shares flow through these lines. One point of receipt/delivery is the SCE 230kV bus interconnection with LADWP. The other point of receipt/delivery is the facilities at T.M. Goodrich which is comprised of three 100MVA transformers for reliability. 8 Adelanto Sylmar Pasadena s entitlement over this 500kV segment is a total of 136MW and is comprised of two contracts with the LADWP: a. 26MW of bi-directional transmission service is provided to Pasadena through the Hoover Transmission Service Agreement with LADWP; and, b. 110MW of bi-directional transmission service is provided to Pasadena through the IPP Transmission Service Agreement with LADWP. The points of receipt and delivery for this transmission path are the Adelanto Switching station and the 230kV bus at Sylmar Switching station where SCE s electric system interconnects with LADWP s electric system. 9 Victorville Sylmar The Victorville Sylmar line is a 500kV transmission line whose points of receipt and delivery are the 500kV bus at Victorville Switching Station and the 230kV bus at Sylmar Switching station where SCE s electric system interconnects with LADWP s electric system. Pasadena has 25MW of bi-directional transmission entitlement provided under the Victorville Sylmar Transmission Service Agreement. 10 Mead McCullough The Mead McCullough line is a 500kV alternating current transmission line whose points of receipt and delivery are the Mead 230kV bus and McCullough 287kV bus. Pasadena s bi-directional 26MW entitlement for firm service over this transmission path is derived from the Hoover Service Transmission Agreement with LADWP. 11 McCullough - Victorville This path is comprised of two contracts, this entitlement share (26MW) as well as an ownership share (26MW, see C2, below) for a total of 52MW. The 500kV transmission line entitlement is derived from the Hoover Transmission Service Agreement. The segment s receipt/delivery points are the McCullough 287kV bus at and Victorville 500kV bus. 3

City of Pasadena Application for Participating Transmission Owner Status C. Pasadena s Transmission Participating Ownership Shares 1 Pacific Direct Current Intertie The Pacific Direct Current Intertie ( PDCI ) is a double-pole, +/-500 kv transmission line 850 miles long starting in Celilo in northern Oregon and ending in Sylmar, California. This line conveys energy from BPA and other Pacific Northwest utilities at NOB to Sylmar. PWP purchased 69 MW (30/1300) of the total 3100 MW capacity of the southern portion (south of the point where the line crosses the NOB) of the Pacific Northwest DC project. Pasadena s rights are defined in the PDCI Transmission Facilities Agreement with LADWP. 2 McCullough Victorville In addition to the 26 MW entitlement share listed above (B.13), Pasadena has a 26MW ownership interest in this 500kV line, as defined in the McCullough- Victorville Line 2 Transmission Agreement with the LADWP with receipt/delivery points at the Mead 230kV bus and McCullough 287kV bus. 2. See Attachments and Appendices 3. Encumbrances Pacific DC Intertie (PDCI) The City of Pasadena sold 24 MW of its share of the Pacific DC Intertie to the Cities of Anaheim, Riverside, Azusa, Banning, and Colton. Under operating procedures established with these cities, the other seller of similar rights (the City of Burbank), and SCE, Pasadena s 24 MW encumbrance has been assigned to Anaheim s 24 MW purchase of PDCI from Pasadena and Burbank. These rights have been assigned to the ISO and are scheduled by SCE in coordination with LADWP. 4. Transmission Lines and Facilities to be placed under ISO s Operational Control The City of Pasadena intends to place under the ISO s Operational Control all of its transmission entitlements listed in Section 1 above (except for the Azusa T.M. Goodrich Gen-Tie listed under B.8.), reduced to reflect the encumbrance described in section 3. The City of Pasadena does not have ownership of, or entitlements to, any Low Voltage Transmission Facilities. 4

City of Pasadena Application for Participating Transmission Owner Status 5. Reliability Criteria The City of Pasadena does not have any specific Local Reliability Criteria that are applied to the entitlements identified in Section 2 above. It is Pasadena s understanding that the transmission providers or the operating agents for the transmission projects to which Pasadena has an entitlement meet the WECC standards. 6. Maintenance Practices The City of Pasadena does not operate or maintain any of the transmission facilities to which it has an entitlement or ownership share. All operating agreements for the foregoing transmission projects require that the operating managers perform operating and maintenance work according to Prudent Utility Practice, the respective agreements and applicable guidelines. 7. Temporary Waivers A temporary waiver is not requested at this time. 8. Proposed Transmission Owner (TO) Tariff A draft of Pasadena s TO Tariff is attached. The City of Pasadena will file the final draft of its TO Tariff, including TRR, with the Federal Energy Regulatory Commission (FERC) under the FERC s rules and procedures for non-jurisdictional rate filings. 9. Pasadena s TRR The City of Pasadena will file its TRR as part of the non-jurisdictional filing as noted in Section 8 above. 10. Address and Contact Names Ms. Phyllis E. Currie Mr. Steven K. Endo General Manager Resource Planning Manager City of Pasadena City of Pasadena Water and Power Department Water and Power Department 150 S. Los Robles, Suite 200 150 S. Los Robles, Suite 680 Pasadena, CA 91101 Pasadena, CA 91101 Email: pcurrie@cityofpasadena.net Email: sendo@cityofpasadena.net Telephone: (626) 744-4425 Telephone: (626) 744-6246 Fax: (626) 744-4670 Fax: (626) 744-6432 11. Other Information None at this time. 5

City of Pasadena Application for Participating Transmission Owner Status 12. Settlement Account Same as the Settlement Account that Pasadena currently has as a Scheduling Coordinator. [Information Redacted] 13. Pasadena s MWh Demand in 2003 MWh Demand Per Month Calendar Year 2003 Month MWh January 98,024 February 88,110 March 97,872 April 92,395 May 101,284 June 99,856 July 129,767 August 127,696 September 110,467 October 109,113 November 89,064 December 96,236 Total 1,239,884 14. Instructions for Encumbrances and Entitlements Instructions will be developed jointly with the ISO and the operating agents/transmission providers associated with Pasadena s transmission entitlements. Similarly, owners of encumbrances will be notified of Pasadena s intent to become a PTO and instructions will be developed jointly with those holders and Pasadena and the ISO. 6

APPENDIX A PASADENA S TRANSMISSION ENTITLEMENTS Ref Point of Receipt-Delivery (see note 2) Parties Direction Contract Title FERC No. Contract Termination Contract Amount B1. IPP - Adelanto Switching Station Pasadena-SCPPA Bi-directional Southern Transmission System Transmission Service Contract 15-Jun-27 113 MW B2. Mead - Marketplace - Adelanto Pasadena-SCPPA Bi-directional Mead-Adelanto Project Transmission Service Contract 31-Oct-30 70 MW B3.a Westwing Mead 500 kv Pasadena-SCPPA Bi-directional Mead-Phoenix Project Transmission Service Contract 31-Oct-30 33 MW B3.b Mead 500 kv - Marketplace 500 kv Pasadena-SCPPA Bi-directional Mead-Phoenix Project Transmission Service Contract 31-Oct-30 60 MW B3.c Mead 500 kv - Mead 230 kv Pasadena-SCPPA Bi-directional Mead-Phoenix Project Transmission Service Contract 31-Oct-30 33 MW B4. Marketplace 500 - McCullough 500 kv Pasadena-SCPPA Bi-directional Mead-Phoenix and Mead-Adelanto Project Transmission 31-Oct-30 121 MW Service Contracts B5. Adelanto - Victorville Pasadena-LADWP Bi-directional Hoover Transmission Service Agreement 14442 30-Sep 17 26 MW B6.a IPP - Mona Substation Pasadena-LADWP - Bi-directional IPP Excess Power Sales Sales Agreement 15-Jun-27 76 MW Utah Participants B6.b IPP - Gonder Substation Pasadena-LADWP - Bi-directional IPP Excess Power Sales Sales Agreement 15-Jun-27 15 MW Utah Participants B7. Sylmar T.M. Goodrich Pasadena-SCE Bi-directional 230-KV Interconnection and Transmission Agreement 04-Aug-10 200 MW B8.a Adelanto - Sylmar Pasadena-LADWP Bi-directional IPP Transmission Service Agreement 14443 15-Jun-27 110 MW B8.b Adelanto - Sylmar Pasadena-LADWP Bi-directional Hoover Transmission Service Agreement 14442 30-Sep 17 26 MW B9. Victorville Sylmar Pasadena-LADWP Bi-directional Victorville-Sylmar Transmission Service Agreement 14444 Note 1 25 MW B10. Mead McCullough Pasadena-LADWP Bi-directional Hoover Transmission Service Agreement 14442 30-Sep 17 26 MW B11. McCullough - Victorville Pasadena-LADWP Bi-directional Hoover Transmission Service Agreement 14442 30-Sep 17 26 MW C1. Nevada Oregon Border - Sylmar Pasadena-LADWP Bi-directional Pacific Intertie D-C Transmission Facilities Agreement 14-Apr-41 69 MW C2. McCullough Victorville Pasadena-LADWP Bi-directional McCullough Victorville Line 2 Transmission Agreement 10463 31-May-30 26 MW Notes 1 This contract is coterminous with the McCullough Victorville Line 2 Transmission Agreement. 2 Deliveries to Sylmar point of delivery are at the SCE/CAISO side of the 230kV bus. A - 1

CITY OF PASADENA TRANSMISSION SERVICE CONTRACT PATHS As of January 1, 2003 APPENDIX A FIGURE 1 NOB Intermountain (69-24=45) Gonder (15) (76) Mona (113) Generation Station Transmission Substation (Transmission Line Capacity) SP15 Sylmar (SCE) (200) Adelanto (110+26=136) (25) TM Goodrich (Pasadena) (26) Victorville (70) (26+26=52) Azusa Hydro Market Place (121) (60) Mc Cullough (26) (25) (26) Hoover Mead (500kV) Mead (230kV) (33) Westwing Palo Verde Generation A - 2

APPENDIX B PASADENA S TRANSMISSION ENCUMBRANCES Point of Receipt-Delivery Parties Direction Contract Title FERC No. 1. Nevada/Oregon Border Sylmar Pasadena - Riverside, Bi-directional Pacific Intertie Direct Current Firm Transmission Azusa, Banning, Colton Service Agreement 2. Nevada/Oregon Border - Sylmar Pasadena - Anaheim Bi-directional Pacific Intertie Direct Current Firm Transmission Service Agreement Contract Start Date Contract Termination Contract Amount 01-Oct-89 30-Sep-09 14 MW 01-Oct-89 30-Sep-09 10 MW B - 1