FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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PLANT NO. 1 ADDED FACILITIES AGREEMENT RENEWAL WITH SOUTHERN CALIFORNIA EDISON COMPANY
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve the Added Facilities Agreement with Southern California Edison Company and Orange County Sanitation District, for the Orcosan Substation at Plant No. 1, AF00801-001, ensuring perpetual replacement cost coverage.
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BACKGROUND
Both Orange County Sanitation District's (OC San) Plant No. 1 and Plant No. 2 have dedicated electrical substations, designated as Orcosan and Orcogen respectively, which connect them to the Southern California Edison Company (SCE) power grid. Substations contain equipment that transforms the high voltage (66 kV) from SCE to the lower voltage (12.5 kV) required by the treatment plants. While OC San pays for the substation equipment, ownership remains with SCE.
Under a 20-year Added Facilities Agreement (AFA) signed in April 2006, OC San pays a monthly fee to SCE for the Plant No. 1 Orcosan substation equipment, including replacements during the AFA term. Currently, this fee is $16,593.80.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Maintain a culture of improving efficiency to reduce the cost to provide the current service level of standard
PROBLEM
The existing AFA for Plant No. 1 Orcosan substation will expire on April 20, 2026. SCE has offered three renewal options:
1) Terminate the AFA service: SCE would remove the Added Facilities equipment and revert to providing standard electrical service.
2) Extend AFA service without replacement: AFA equipment would remain in place but would not be replaced if needed. The monthly fee would decrease by $1,005, to approximately $15,588, but OC San would be responsible for all equipment replacements as they occur.
3) Extend AFA service with...
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