REPORT TO COUNCIL
SUBJECT
Title
Action on the Transmission Agency of Northern California Project Agreement No. 6 for Regulatory Engagement in Participating Transmission Owner Cases before the Federal Energy Regulatory Commission
Report
BACKGROUND
The Transmission Agency of Northern California (TANC) is a joint powers agency established by a group of California publicly-owned utilities, including the City of Santa Clara doing business as Silicon Valley Power (SVP), the Cities of Alameda, Healdsburg, Lodi, Lompoc, Palo Alto, Redding, Roseville, and Ukiah, as well as the Modesto Irrigation District, the Sacramento Municipal Utility District, the Turlock Irrigation District, and the Plumas-Sierra Rural Electric Cooperative (Participating Members), with the purpose of providing electric transmission operation and maintenance services for the California Oregon Transmission Project (COTP). The COTP consists of 340 miles of 500-kV AC transmission line between Southern Oregon and Central California. In addition, TANC, on behalf of its Participating Members, also engages in certain regulatory forums, including before the Federal Energy Regulatory Commission (FERC), in order to protect the value of TANC's transmission assets and to support the Participating Members by striving to limit the Participating Members' exposure to transmission cost when transacting in the California Independent System Operator (CAISO) markets.
TANC has historically placed particular focus on the Pacific Gas and Electric Company's (PG&E) transmission owner (TO) rate cases due to the significant impact that rate cases may have on the transmission rates under TANC's South of Tesla Principles (SOTP) existing transmission contract with PG&E. Currently, TANC's cost associated with TO rate cases is allocated to TANC Members based on their transmission capacity entitlements under the South of Tesla Agreement (SOT). Some Participating Members have opted to temporarily lay off their SOTP transmiss...
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