September 7, 2012 COMMENTS ON BEHALF OF THE CITIES OF ANAHEIM, AZUSA, BANNING, COLTON, PASADENA, AND RIVERSIDE, CALIFORNIA REGARDING THE REVISED DRAFT TARIFF LANGUAGE FOR ORDER NO. 1000 COMPLIANCE In response to the ISO’s request, the Cities of Anaheim, Azusa, Banning, Colton, Pasadena, and Riverside, California (collectively, the “Six Cities”) submit the following comments regarding the August 30, 2012 Order 1000 Draft Tariff Language. The Six Cities have a general comment regarding the ISO’s proposal, indicated throughout the draft tariff language, to revise the terminology to refer to “Regional” transmission facilities (rather than “High Voltage” or “HV”) transmission facilities and “Local” transmission facilities (rather than “Low Voltage” or “LV”) transmission facilities and corresponding changes in the terminology for Transmission Revenue Requirements and Access Charges. While the proposed changes in terminology make sense conceptually, the existing terminology appears not only in the ISO Tariff but also in many other documents relating to the relationships among the ISO and Market Participants, including the Transmission Control Agreement and the Transmission Owner Tariffs of the Participating Transmission Owners. Although it would be reasonable to submit conforming changes to those other documents as other revisions become necessary, it would be unduly burdensome to require immediate revision of all documents that include references to the terms the ISO proposes to change. The Six Cities recommend, therefore, that the ISO retain the existing terms so that they can be used as necessary to clarify the meanings of those terms in other documents, at least for a reasonable transition period. The Six Cities suggest the following revisions to specific sections of the draft tariff language: Section 24.4.5 - - In the fourth line from the end of the section, change “ISO” to “CAISO”. Section 24.4.10 - - In the seventeenth line, change “a” to “an”. Section 24.5.2.1 - - In the second line, delete “to”. Section 24.6 - - The Six Cities recommend that the following language, which the ISO proposes to move to Section 24.6.4, be retained in this section: “The Approved Project Sponsor shall not sell, assign or otherwise transfer its rights to finance, construct and own the project before the project has been energized and, if applicable, turned over to the CAISO’s Operational Control unless the CAISO has approved such proposed transfer.” The Six Cities believe that it is more appropriate to retain the language in this section, because it will be applicable to a broader range of situations. Section 24.6.4 applies when an Approved Project Sponsor is unable to complete a project. The requirement for the CAISO’s approval for any transfer of an Approved Project Sponsor’s rights to finance, construct and own the project should apply in all situations where such a transfer may be considered, not just where the Approved Project Sponsor is unable to complete the Project. Section 24.6.4 - - See the comment on Section 24.6 above re positioning of the language on transfer of rights to finance, construct and own projects. Section 24.14.4 - - In the last line, delete the phrase “regardless of which TAC Area the facility is geographically located.” The phrase the Cities propose to delete is unnecessary and potentially confusing. Section 26.1.2 - - In the fourth line delete “, as applicable,”. Section 26.1.4.1 - - Change the first two sentences to read as follows: The Wheeling Access Charge shall be determined by the TAC Area and transmission ownership or Entitlement, less all Encumbrances, associated with the Scheduling Point at which the Energy exits the CAISO Controlled Grid. The Wheeling Access Charge for Scheduling Points contained within a single TAC Area, that are not joint facilities, shall be equal to the Regional Access Charge for the applicable TAC Area in accordance with Schedule 3 of Appendix F plus the applicable Local Access Charge if the Scheduling Point is on a Local Transmission Facility. Section 26.1.4.3.1 - - In the fifth line, change “TO’s” to “TOs’”. Appendix F, Schedule 3, Section 1.1(a) - - Delete this sub-section. Appendix A, definition of “Local Transmission Facility” - - In the first line, change “control” to “Control”. Appendix A, definition of “Location Constrained Resource Interconnection Facility” - - The reference to Section 24.1.3 is incorrect, as that section is [NOT USED]. Also, it is not appropriate to define a “Location Constrained Resource Interconnection Facility” as a type of “Regional Transmission Facility,” and doing so is inconsistent with the proposed definition of “Regional Transmission Facility”. Appendix A, definition of “Transmission Access Charge Area (TAC Area)” - - As the TAC Area concept no longer affects the Regional Transmission Revenue Requirements or the Regional Access Charge, the Six Cities recommend revising this definition simply to read: “A portion of the CAISO Controlled Grid as identified in Section 3 of Schedule 3 of Appendix F.” Appendix A, definition of “Transmission Revenue Credit” - - In the third line, delete “Original”. Submitted by Bonnie S. Blair Thompson Coburn LLP bblair@thompsoncoburn.com 202-585-6905 Attorney for the Cities of Anaheim, Azusa, Banning, Colton, Pasadena, and Riverside, California -2-