[Federal Register Volume 63, Number 3 (Tuesday, January 6, 1998)]
[Notices]
[Pages 521-559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-128]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Open Access Transmission Service Tariff
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of final Tariff.
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SUMMARY: The Western Area Power Administration (Western) is adopting
this final Open Access Transmission Service Tariff (Tariff) in order to
be consistent with the Federal Energy Regulatory Commission (FERC)
Order Nos. 888 and 888-A to the extent consistent with laws applicable
to Western's activities.
DATES: The Tariff will become effective February 5, 1998. The Tariff
will remain in effect until superseded.
FOR FURTHER INFORMATION CONTACT:
Mr. Robert J. Harris, Power Marketing Manager, Upper Great Plains
Region, Western Area Power Administration, P.O. Box 35800, Billings, MT
59107-5800; (406) 247-7394
Mr. Dave Sabo, CRSP Manager, CRSP Customer Service Center, Western Area
Power Administration, P.O. Box 11606, Salt Lake City, UT 84147-0606;
(801) 524-5493
Mr. Anthony H. Montoya, Power Marketing Manager, Desert Southwest
Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ
85005-6457; (602) 352-2789
Mr. James D. Keselburg, Power Marketing Manager, Rocky Mountain Region,
Western Area Power Administration, P.O. Box 3700, Loveland, CO 80539-
3003; (970) 490-7370
Ms. Zola Jackson, Power Marketing Manager, Sierra Nevada Region,
Western Area Power Administration, 114 Parkshore Drive, Folsom, CA
95630-4710; (916) 353-4421
Mr. Robert Fullerton, Corporate Communications Office, Western Area
Power Administration, Post Office Box 3402, Golden, CO 80401-0098;
(303) 275-2700.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Procedures
II. Background
III. Comments Raised During the Development of this Final Tariff
IV. Summary of Significant Changes from Western's Proposed Tariff
V. Coordination with Adoption of Open Access Transmission Rates
VI. Regulatory Requirements
I. Procedures
Western will submit the final Tariff to FERC under a non-
jurisdictional docket and will request a declaratory order that the
Tariff meets FERC comparability standards as set forth in FERC Order
Nos. 888 and 888-A. Western will make the necessary changes in response
to the FERC declaratory order and will publish the revised final Tariff
in the Federal Register.
II. Background
Use of transmission facilities that Western owns, operates, or to
which it has contract rights for delivery of Federal long-term firm
capacity and energy to project use and electric service customers is a
Western responsibility under the terms and conditions of marketing
criteria and electric service contracts implementing statutory
obligations to market Federal power. This is complementary with the
provisions of the Tariff. Transmission service provided by Western
under the Tariff is solely for the use of available transmission
capability in excess of the
[[Page 522]]
amount Western requires for the delivery of long-term firm capacity and
energy to project use and electric service customers of the Federal
government. Western will offer to provide others transmission service
equivalent to the service Western provides itself.
Western was established on December 21, 1977, pursuant to Section
302 of the Department of Energy (DOE) Organization Act, Public Law 95-
91, dated August 4, 1977. Western's primary and long-standing mission
is to market Federal power resources with emphasis on maintaining an
efficient and reliable power system. Western is a power supplier that
markets and transmits Federal power resources in 15 Central and Western
States encompassing a geographic area of 3.38 million-square-kilometers
(1.3 million-square-miles). Western has four Customer Service Regional
Offices and the Colorado River Storage Project Customer Service Center
(CRSP CSC), each referred to in the Tariff as a Regional Office.
Western markets power and provides transmission service from various
multi-purpose hydroelectric projects.
Western is not a public utility under Sections 205 and 206 of the
Federal Power Act and is not specifically subject to the requirements
of the FERC Order Nos. 888 and 888-A. Western is a transmitting utility
subject to Section 211 of the Federal Power Act as amended by the
Energy Policy Act of 1992.
FERC issued a Notice of Proposed Rulemaking (NOPR) for Open Access
Transmission Service, published at 60 FR 17662, on April 7, 1995. On
October 4, 1995, the Secretary of DOE adopted a Power Marketing
Administration Open Access Transmission Policy which stated that DOE
supported the spirit and intent of the NOPR. The Secretary of DOE
stated that the Power Marketing Administrations would comply with the
principles set forth in the FERC's final rule to the extent consistent
with applicable law. FERC issued its final rule, Order No. 888,
published at 61 FR 21540 on May 10, 1996, and followed with Order No.
888-A, published at 62 FR 12273, on March 14, 1997.
In early 1996, Western began developing a Tariff Equivalent Package
(TEP) to comply with the Secretary's directive. A draft TEP, which was
designed as a Western-wide document that would contain Region-specific
rates and charges, was completed in July 1996 and sent to Western's
electric service customers, transmission-service customers, and other
interested parties for review and comment. Western accepted comments on
the TEP through November 1996.
After evaluating comments, Western modified its original concept of
preparing a Western-wide TEP and began developing Regional Open Access
Transmission Service Guidelines (Regional Guidelines). These Regional
Guidelines contained service agreements consistent with the specific
conditions applicable to each Region. The resulting documents were sent
to electric service customers, transmission customers, and other
interested parties for review and comment in April 1997. The review
period for those documents ended in early June 1997. Customer and
interested party participation was conducted informally.
Western began its formal process of developing this Tariff when it
issued a Notice of Proposed Tariff published at 62 FR 50572 on
September 26, 1997. A formal comment period lasted for 31 days. On
October 7, 1997, Western held a combined public information and public
comment forum. The comments received during the comment period were
considered in developing this final Tariff.
Western will submit the Tariff document to FERC under a non-
jurisdictional docket and request a declaratory order from FERC that
this Tariff meets the FERC comparability standards as set forth in FERC
Order Nos. 888 and 888-A. Consistent with a single FERC filing, Western
has developed and will file this Tariff with appended schedules and
attachments. Western's Tariff includes Attachment J, Provisions
Specific to the Transmission Provider, and Attachment K, Authorities
and Obligations, which are specific to Western and are not found in
FERC's pro forma tariff.
By law, the Bureau of Reclamation (Reclamation) provides Federal
power resources to its project use customers. By law, Western markets
Federal power resources to its electric service customers. Western's
transmission system was built primarily to enable the delivery of
Federal power to satisfy these contractual obligations. Western's
Regional Offices reserved transmission capacity shall, therefore,
include capacity sufficient to deliver Federal power resources to
customers of the Federal government. Nothing in this Tariff shall
alter, amend, or abridge the statutory or contractual obligations of
Western to market and deliver Federal power resources and to repay the
Federal investment in such projects. This Tariff provides for
transmission, including each Regional Office's use of those facilities
for third party sales, on the unused capacity of transmission
facilities under the jurisdiction or control of each of Western's
Regional Offices not required for the delivery of long-term firm
capacity and energy to customers of the Federal government in a manner
consistent with the spirit and intent of FERC Order Nos. 888 and 888-A.
Western has prepared this Tariff and service agreements to provide
transmission service comparable to that required of public utilities by
FERC Order Nos. 888 and 888-A, and to implement those Orders consistent
with the DOE Policy. An entity desiring transmission service from
Western must comply with the application procedures outlined herein.
The review and approval requirements detailed herein will apply to all
requesting parties. Western will perform the necessary studies or
assessments for evaluating requests for transmission service as set
forth in this Tariff. Any facility construction or interconnection
necessary to provide transmission service will be subject to Western's
General Requirements for Interconnection which are available upon
request.
Western will provide Firm and Non-Firm Point-to-Point Transmission
Service and Network Integration Transmission Service consistent with
the Tariff. The specific terms and conditions for providing
transmission service specific to a particular customer will be included
in a Service Agreement. Operating Procedures, Available Transmission
Capability (ATC), and System Impact Methodology are defined in the
Attachments. Western's Regional Offices develop rates under separate
public process pursuant to applicable Federal law and regulations.
Therefore, rates and charges for specific services will be set forth in
the appropriate Regional rates schedules attached to each Service
Agreement.
Western has marketed the maximum practical amount of power from
each of its projects, leaving little or no flexibility for provision of
additional electric services from the projects. Changes in water
conditions frequently affect the ability of hydroelectric projects to
meet obligations on a short-term basis. The unique characteristics of
the hydro resource, Western's marketing plans, and the limitations of
the resource due to changing water conditions limit Western's ability
to provide generation-related services including ancillary services and
redispatching, using Federal hydro resources.
[[Page 523]]
III. Comments Raised During the Development of this Final Tariff
Participants in the formal review process raised numerous comments
about the proposed tariff. The following highlights the more
significant comments and Western's responses.
Comment: A commentor stated that the ``Annual Transmission Costs''
definition (Section 1.2) does not appear to include the costs of the
power produced at Reclamation's hydroelectric power facilities. The
transmission rates do, however, indicate the need for ancillary
generation service support. The definition should then also include
costs associated with Reclamation's support of Ancillary Services.
Response: It is correct that the definition for ``Annual
Transmission Costs'' does not include the costs of the power produced
at the hydroelectric facilities. FERC Order Nos. 888 and 888-A provide
that only transmission costs may be included in the definition of
``Annual Transmission Costs.''
Comment: A commentor asked if, in Section 1.2, it is correct that
the Annual Transmission Costs can be modified by the FERC.
Response: FERC decisions may affect what facility costs will be
included in Western's Annual Transmission Costs.
Comment: A commentor asked why Western deleted the reference to
FERC's approval in Section 1.10.
Response: Western is not a public utility and, therefore, is not
subject to FERC's jurisdiction under Sections 205 and 206 of the
Federal Power Act. Western is not, therefore, required to submit
Service Agreements to FERC for approval.
Comment: A commentor stated that, Western, as a Transmission
Provider, does not have retail customers, and, therefore, the word
``retail'' should be deleted from Section 1.19.
Response: Inclusion of this language does not establish the type of
customer Western serves. This change is not necessary.
Comment: A commentor asked if the definition of ``Transmission
Provider'' in Section 1.46 includes the CRSP CSC in the context of the
Regional Office reference.
Response: The definition of ``Transmission Provider'' does include
the CRSP CSC in the context of the Regional Office reference. As
specified in Attachment K, the CRSP CSC is a Transmission Provider as
are Western's other Regional Offices.
Comment: A commentor requested clarification on whether Section 2.1
indicates that existing project use loads will be included in the
initial allocation of available transmission capacity calculations.
Response: Section 2.1 addresses applications for transmission
service received during the first 60 days commencing with the effective
date of the Tariff. Section 2.1 does not address existing commitments
for transmission. However, in response to the comment, existing project
use loads are components in the Regional Office's calculations of ATC.
Comment: Several commentors requested that Western delete ``to the
extent possible'' in the second paragraph of Section 3.0, and delete
the requirement for a separate agreement to purchase Ancillary Services
on behalf of the transmission customer.
Response: Western agrees and has modified Section 3.0.
Comment: A commentor suggested that, in Section 3.0, Western should
insert the word ``uncommitted'' before the word ``surplus.''
Response: Western has removed the referenced sentence.
Comment: A commentor suggested that in Section 3.0 after the
phrase, ``Services it will purchase from the Transmission Provider''
that Western insert this sentence: ``Ancillary Services are included as
part of Federal customer transmission service.''
Response: This section applies only to transmission service
provided under the Tariff and does not refer to existing transmission
commitments of Western.
Comment: A commentor suggested that within the title of Section
5.1, replace the words ``Local Furnishing'' with the words ``Tax
Exempt'' so that the subtitle reads ``Transmission Providers That Own
Facilities Financed by Tax Exempt Bonds'' and make this change
throughout the section. The commentor also suggested that in Section
5.2(i), Western delete the words ``local furnishing.''
Response: This issue was raised in comments to FERC as it developed
its pro forma tariff. The result is the language in Section 5.0 of the
pro forma tariff, which Western has adopted.
Comment: A commentor stated that the proposed Tariff does not
comply with FERC Order Nos. 888 and 888-A. Western's Tariff does not
recognize an exception to comparability and reciprocal service if each
or both would jeopardize a public power utility's tax exempt financing.
Another commentor stated that there has not been a genuine and good
faith effort to include the specific treatment and special requirements
of the non-jurisdictional/non-public utilities that are expressly
recognized and available under FERC Order Nos. 888 and 888-A.
Response: Western has complied with FERC Order No. 888-A by
adopting the pro forma language insofar as Western can and still comply
with Federal law. Nothing in Western's Tariff abrogates any specific
treatment and special requirements of the non-jurisdictional/non-public
utilities that are expressly recognized and available under FERC Order
Nos. 888 and 888-A. Non-public utilities seeking relief from this and
other provisions should seek a waiver of reciprocity from FERC pursuant
to 18 CFR 35.28(e).
Comment: A commentor asked how the cost of System Impact Studies
conducted on behalf of Western or its Federal customers will be shared
between Federal customers and customers served under the Tariff.
Response: Western will assign System Impact Study costs for
Western's benefit in accordance with Section 8.0 of the Tariff.
Comment: A few comments were made that, in Section 10.1, the last
part of the added sentence states, ``* * * and shall exercise due
diligence to remove such inability with all reasonable dispatch.'' This
language appears to either duplicate or modify the ``all reasonable
efforts'' language in the previous sentence. In either case, it should
be removed.
Response: Western agrees and has deleted the added sentence in
Section 10.1.
Comment: A commentor stated that Western should add the following
language to Section 12.1, ``In the event the designated representatives
are unable to resolve the dispute within 45 days (or such other period
as the Parties may agree upon) the dispute may be resolved through the
procedures specified in Section 12.2.''
Response: Western agrees with the suggested concept and has
modified Section 12.1 to allow external dispute resolution under
Section 12.2 if disputes can not be resolved in 30 days.
Comment: Several commentors stated that Western should modify the
final Tariff to provide that the Transmission Provider; i.e., the
appropriate Regional Office of Western, agrees to apply the dispute
resolution process adhered to by the regional transmission group to
which the Transmission Provider belongs.
Response: Western agrees and has modified Section 12.2 to
incorporate the suggested concept.
Comment: A commentor stated that Western must include a Dispute
Resolution Procedure in Section 12 that is binding on Basin Electric
Power Cooperative, Inc. (BEPC) and Heartland Consumers Power District
(HCPD).
[[Page 524]]
Response: Western's Upper Great Plains Region (UGPR) is the
Transmission Provider and all disputes between the Transmission
Provider and the transmission customer will be subject to the dispute
resolution procedures of the Tariff, thus no modifications are
warranted. Disputes that involve only a transmission customer and
either BEPC or HCPD could still be resolved under appropriate Mid-Area
Continent Power Pool (MAPP) procedures whenever it involves an issue
discrete to either and is not a part of the general Tariff provisions.
Comment: A comment was made that Western should incorporate the
word ``uncommitted'' in various sections of the Tariff, including
Sections 13.5, 27.0, and 33.2.
Response: The addition of this term could jeopardize Western's
ability to meet FERC's test for comparability. Therefore, Western has
not made the suggested changes.
Comment: A commentor requested that in Sections 13.8 and 14.6 the
reference to 10 a.m. should include a time zone; e.g., MST or PST for
each operating area, and delete the language in the brackets.
Response: Western adopted the language of the pro forma tariff.
Since this is a Western-wide document, Western is unable to assign a
time zone. Western's scheduling offices are located in three different
time zones. The 10 a.m. reference applies to the time of the
appropriate scheduling office from which transmission service is being
requested.
Comment: A commentor requested that the phrase, ``This does not
apply to the Colorado River Front Work and Levee System or the Salinity
transmission system'', be inserted at the end of Section 15.4.
Response: The last sentence in Section 15.4 addresses this comment.
The facilities identified in the comment are considered distribution
facilities and are not subject to the Tariff. Request for service on
these facilities will be handled on a case-by-case basis.
Comment: Several commentors strongly encouraged the inclusion of
transmission losses in Sections 15.7 and 28.5 of the Tariff and that
the associated section in the applicable Service Agreements be removed,
thus providing them with some reasonable assurance that these factors
will be applied in a non-discriminatory and comparable manner.
Response: Since this is a Western-wide document and transmission
loss factors are calculated separately for each Transmission System,
Sections 15.7 and 28.5 of the pro forma tariff were modified to allow
the applicable transmission loss percentages to be included in the
Regional Office specific Service Agreements. Each of Western's Regional
Offices periodically modifies its Transmission System loss factors
based on system losses and all of its Regional Office(s) s are subject
to these loss factors.
Comment: A commentor requested that Western, in Sections 17.2(iv)
and 18.2, insert ``or other'' after ``Regional Transmission Group
(RTG).''
Response: The commentor's proposed language is too broad and might
adversely affect the rights of entities that are not parties to the
agreement. Therefore, this change was not made.
Comment: Several commentors made the comment that Western's
proposed application processing fees in Sections 17.3 and 29.2 are
inconsistent with the pro forma provisions, and that the processing fee
or at least some portion should be refunded if the request for
transmission service is denied by Western. It is the opinion of the
commentors that, as written, Western's processing fee procedures do not
provide reciprocal service, and Western provides no numerical
justification for the processing fees included in Attachment K.
Response: The processing fee is being collected to offset those
costs incurred by Western in processing applications for transmission
service. These costs will be incurred irrespective of whether
transmission service is taken, so no refunds will be made. In
developing the processing fee, each Regional Office used the same
method, which reflects an average of staff wages and benefits
multiplied by the average time it takes to analyze and respond to
requests for service. Western plans to periodically review these costs.
FERC has previously accepted this methodology.
Comment: A comment was made that Western should incorporate the
phrase ``and applicable Federal law and regulations'' in Section 27.0.
Comments were also made that Western should incorporate the phrase
``and permitted by Federal law and regulations'' in Section 30.5. Both
sections address redispatch procedures.
Response: There are no Federal laws governing redispatch; however,
Western does have certain limitations on this matter based on specific
power marketing plans.
Comment: A commentor recommended that Western insert
``transmission'' in its clarifying statement at the end of Section
28.2, so that there is no misinterpretation of the meaning of capacity.
Response: Western agrees and has made the change.
Comment: A commentor stated FERC's Pricing Policy provides that
Western can only charge the higher of embedded costs or opportunity
costs, but not the sum of the two. This FERC Pricing Policy should be
applicable to Western, since Western agreed to abide by FERC's rate-
making policies as a condition of its membership in Southwest Regional
Transmission Association (SWRTA).
Response: This comment is outside the scope of this process.
Western is meeting the rate-making policies of FERC for Federal Power
Marketing Administrations as agreed in the SWRTA agreement.
Comment: A commentor suggested that, in Section 30.8 in the second
line after the word ``the'' and before ``Transmission Provider'',
Western insert ``available capability of the''.
Response: Western has stated in Attachment K to its Tariff that
only excess transmission capability will be available and has found
this change unnecessary. This excess transmission capability will be
determined as provided in Attachment C to the Tariff.
Comment: A commentor asked what is Federal policy as mentioned in
Section 34.0. Is it published and who has oversight--FERC? What if it
conflicts with FERC? The same commentor also asked what is meant by
applicable Federal law and regulations, and is it different region-by-
region or is it consistent region-by-region? The commentor further
asked what are Western's current applicable laws and regulations
relating to stranded costs?
Response: Federal policy as used in Section 34.0 includes FERC's
policies, regulations and rulings pertaining to open access
transmission service to the extent consistent with the body of Federal
laws governing Western's activities. Applicable Federal law and
regulations are the body of statutes and regulations governing the
activities of Western as a Federal Power Marketing Administration.
Treatment of stranded costs by Western will be governed by the
principles contained in FERC Orders No. 888 and 888-A, related rulings
and orders promulgated by FERC, and Western's statutory obligations as
a Federal Power Marketing Administration.
Comment: Several commentors made comments regarding Western's
decision to change certain pro forma tariff sections to require advance
payment for the cost of any necessary transmission facility additions
and the associated studies, and provide no interest on those advances.
There is also a concern
[[Page 525]]
that public agencies may not be able to meet the deadlines for
providing advances of funds for Facilities Studies and New
Construction, and that there may be improper cost shifting of Direct
Assignment Facilities to other non-benefiting transmission customers.
Response: The Anti-Deficiency Act, 31 U.S.C. 1341(a), and other
appropriations laws allow Federal agencies to incur obligations and
make expenditures only in amounts available in an appropriation or fund
and available to the government for the purpose for which the
appropriation or fund is budgeted. Therefore, Western will request an
advance of funds for construction of Direct Assignment Facilities in
the construction agreement for such facilities as described in Sections
19.4 and 32.4. Recurring operation and maintenance costs related to
Direct Assignment Facilities will be assessed on a periodic basis as
set forth in the Service Agreement. This process will assure the proper
allocation of costs among customers taking transmission. Western will
return the unexpended portion of any funds advanced for studies or
construction. Western is not able to pay interest on advances without
shifting costs to other customers.
As for certain public agencies unable to meet the deadlines for
providing advances of funds, Western will follow the deadlines required
in the Tariff which, in turn, are the same as those in the pro forma
tariff. To do otherwise could impair Western's ability to meet FERC's
requirement that all requestors be treated in a non-discriminatory
manner.
Comment: A commentor stated that Schedules 2 through 6 of the
Tariff outline Western's offer to provide certain Ancillary Services as
both the Transmission Provider and the Control Area operator. The
commentor has no objection to these schedules if Western has available
Ancillary Services to provide. However, the commentor is concerned that
its generating resources and those of other parties may be used by the
Control Area operator, Western, to provide Ancillary Services without
compensation to the owning utilities. Of course, the opposite outcome
could occur also. The commentor encourages Western to take the lead in
establishing effective and practical operating measures to assure
proper accounting for Ancillary Services. Western should also consider
joint participation by all Control Area generators in supplying these
services.
Response: Western appreciates the comment and will take the lead in
establishing effective and practical operating measures to assure
proper accounting for these Ancillary Services.
Comment: A few commentors stated their concern about the narrow
bandwidth allowed for deviation from scheduled transactions contained
in Schedule 4. One commentor believes that it will be extremely
difficult to stay within this bandwidth because of limitations and
errors in metering, scheduling practices, and unit control, and urges
Western to adopt a broader deviation bandwidth, 3.0 percent
at a minimum, in order to mitigate these control and scheduling
problems. Another commentor stated that some of Western's rate
proposals include penalties of monetary charges for deviations beyond
the scheduling band. This commentor does not agree that a ``one size
fits all'' band is necessary and believes that any monetary charges
should be cost based.
Response: Western is consistent with FERC Order Nos. 888 and 888-A
on this service. The monetary charge is a rate issue and is outside the
scope of this process.
Comment: A commentor stated that the accurate measurement of energy
imbalances (Schedule 4) may not be possible in the UGPR. This is
because there may be more than one supplier at a single point of
measurement. Determining who was the cause of the imbalance may only be
possible during after-the-fact analysis. The power supplier may not be
responsible for being a Control Area operator and it may be the
operator who causes the problem. The commentor states that they do not
have accounting that would allow them to do this on an hourly basis and
the imbalance may change from supplier to supplier within that period.
Response: Western recognizes that there are limitations to the
capability of existing metering. However, FERC did not mandate next
hour settlement of energy imbalances. This is a matter that will need
to be further refined in development of Regional Tariff implementation
procedures.
Comment: A commentor stated that there seems to be a redundancy in
the information being requested in Sections 3.0, 4.0, and 5.0 of the
Specifications for Long-Term Firm Point-to-Point Transmission Service
in Attachment A. The commentor is questioning whether the bill to the
customer will be based on the Capacity Reservation in Section 3.0, the
Capacity Reservation in Section 4.0, or on the Reserved Capacity in
Section 5.0.
Response: The information requested in these sections is necessary
for multiple point-to-point transactions. The bill to the customer will
be based on the Reserved Capacity in Section 5.0. In accordance with
Section 13.7(c) of the Tariff, the amount in Section 5.0 will be the
greater of the sum of the Point(s) of Receipt in Section 3.0 or the sum
of the Point(s) of Delivery in Section 4.0.
Comment: A commentor stated that the control area information
requested in Section 2.0 of the Specifications for Long-Term Firm
Point-to-Point Transmission Service in Attachment A is considerably
different than the Control Area information obtained from Sections 1.0
or 4.0. The Control Area to be referenced in Section 2.0 could be
hundreds, or thousands, of miles from the Control Area of the Point of
Receipt/Point of Delivery.
Response: Section 2.0 is intended to define the Control Area in
which the transaction originates, while Sections 3.0 and 4.0 define the
Point(s) of Receipt/Delivery into and out of the Transmission
Provider's Transmission System. Western has followed the FERC pro forma
tariff wording in these sections, and has found no reason to change the
pro forma language.
Comment: A number of commentors made comments regarding Western's
ATC, including suggestions that the methodology for determination of
ATC must be set out in Attachment C and it must be reasonable,
auditable, and supportable, and it should involve customer groups.
Another commentor similarly requested that Western reference criteria
specified within the SWRTA and/or Western Regional Transmission
Association, Inc. (WRTA) agreements.
Response: Western has stated in Attachment C that it will use
``Good Utility Practice and the engineering and operating principles,
standards, guidelines, and criteria of the * * * applicable Regional
Reliability Council, and any entity of which the Transmission Provider
is a member * * * such as a regional transmission group.'' Many
customers are also members of these regional transmission groups. The
methodology outlined in the specific regional transmission group
criteria provides a clear set of guidelines for both Western and the
transmission customer to evaluate Western's determination of ATC. This
approach is consistent with filings approved by FERC for public and
non-public utilities.
Comment: A commentor had concerns with the last sentence of
Attachment C which refers to reserving transmission capability for
``forecasted power service obligations.'' It is improper for Western to
withhold transmission capability in order to enhance future power
[[Page 526]]
marketing activities, and the inclusion of this phrase violates both
the letter and intent of FERC Order Nos. 888 and 888-A.
Response: In FERC Order Nos. 888 and 888-A, Section IV.C(5), FERC
stated that, ``utilities may reserve existing transmission capacity
needed for Native Load growth and Network load growth reasonably
forecasted within the utility's current planning horizon.'' The
Transmission Provider may market this capacity on a firm or non-firm
basis until such time as the capacity is required by Native Load and
Network Customers. Western has the same right to obtain transmission
service for its own marketing activities as others have to obtain
transmission service from Western for their marketing activities.
Comment: Western received a comment that Attachment F and
Attachment G require overlapping information.
Response: The information required in Attachment F and Attachment G
is not overlapping. Attachment G addresses technical and operational
matters associated with the implementation of Attachment F.
Comment: Western received several comments regarding its proposed
10 times penalty included in Attachment H to the Tariff, and requesting
Western to delete the 10 times penalty.
Response: Western believes the penalty is more appropriately
addressed in Regional Office specific rate processes, and, therefore,
has deleted the 10 times penalty from Section 3.0 of Attachment H.
Comment: A commentor asked if the general contract provisions:
Contingent Upon Appropriations--Section 2.0, Contract Work Hours and
Safety Standards--Section 4.0, Equal Employment Opportunity Practices--
Section 5.0, and Use of Convict Labor--Section 6.0, of Attachment J are
necessary in these types of contractual relationships.
Response: These provisions are required by law to be included in
Federal contracts.
Comment: Several commentors stated that Section 7.0 of Attachment J
gives Western the unilateral right to terminate service if it joins or
is required to conform to the protocols of an independent system
operator (ISO). By itself, the fact that Western joins an ISO does not
automatically relieve Western of its obligation to provide comparable
transmission service. The language referring to Western's unilateral
right to terminate service is improper and should be removed.
Response: This language is required in the Sierra Nevada Region
(SNR) Service Agreements consistent with the findings of FERC in
Pacific Gas and Electric Company, et al., 81 FERC para. 61, 122 (1997).
Western has moved this provision from Section J to the Service
Agreements and this language shall be included by SNR in any Service
Agreements entered into under this Tariff. Similar language may be
required in the future by other Western Regional Offices which join
ISO's to conform to the terms and conditions of the ISO agreement
approved by FERC.
Comment: A commentor stated that Section 8.0 of Attachment J could
be interpreted to bar the resale of transmission rights when such
resale is provided for under FERC Order Nos. 888 and 888-A.
Response: The original Section 8.0 of Attachment J, ``Third Party
Rights'', has been deleted.
Comment: A commentor asked what third party rights BEPC and HCPD
have under Section 8.0 of Attachment J.
Response: The original Section 8.0 of Attachment J, ``Third Party
Rights'', has been deleted.
Comment: A commentor asked why Western includes the phrase
``emergency power'' in Section 10.0 of Attachment J since the Tariff is
for transmission service only and it does not provide for Western to
supply capacity and energy. The same commentor asked how does Western
define emergency power and under what circumstances will it be
provided?
Response: Western has modified Section 10.0 of Attachment J to
remove the reference to emergency power.
Comment: A commentor stated that the billing adjustments
contemplated in Sections 13.0 and 14.0 of Attachment J need to include
refunds of advances.
Response: Sections 13.0 and 14.0 are not the mechanism for Western
to provide refunds for funds advanced to Western. Western added
language to Sections 19.4 and 32.4 to clarify that amounts advanced in
excess of costs incurred will be refunded.
Comment: Several commentors have raised issues regarding the bill
crediting and net billing language in Sections 13.0 and 14.0 of
Attachment J to the Tariff. There is a concern that the language is too
broad and creates the potential for abuse. The provisions in Attachment
J and the associated language in the proposed Service Agreements use
the leverage of access to Western's Transmission System to require the
transmission customer to agree to Western's Net Billing and Bill
Crediting procedures as a condition for service and as means to provide
alternative financing for Western. These provisions appear to be in
conflict with the functional unbundling requirements of FERC Order Nos.
888 and 888-A and may, in fact, require the transmission customer to
violate its own Standards of Conduct implementing FERC Order No. 889
and 18 CFR part 37. All provisions requiring the transmission customer
to agree to Net Billing and Bill Crediting procedures as a condition
for service under the Tariff must be removed.
Response: Western has modified these sections to clarify that the
``Net Billing and Bill Crediting'' provisions are optional. The
inclusion of these provisions in the Tariff is non-discriminatory
because they are not a condition for receiving service.
Comment: Western received several comments regarding proposed
changes to Attachment K. A comment was received requesting that the
phrase ``* * * from the Navajo Project for the Central Arizona Project,
Boulder Canyon Project and the * * *'' be deleted from the Desert
Southwest Region's (DSR) section of Attachment K. Another commentor
requested that the phrase ``* * * of the Parker Davis-Project in DSR *
* *'' be inserted. The same commentor also requested that in the first
paragraph of Attachment K, that Western delete the phrase ``* * * and
one coal fired power plant in Arizona * * *,'' and replace the word
``integrated'' with ``interconnect.'' A commentor requested that in the
seventh paragraph of Attachment K that Western change ``little
flexibility'' to ``little or no flexibility.''
Response: Western concurs with the comments and has made the
changes to Attachment K.
Comment: A commentor proposed the following language for inclusion
in the fourth paragraph of Attachment K, which would read as follows:
* * * treat its Federal Customers in a manner analogous to the
treatment of Native Load Customers by public utilities. The enabling
legislation for the various projects authorizes both transmission
and generation project expenses and contemplates recovery of these
through power rates. For these reasons, Western will continue to
recover transmission and generation related costs from Federal
Customers through a bundled power sales rate. Western is committed
to providing * * *
Response: Western does not believe that it is necessary to add the
proposed text to Attachment K. The issue of cost recovery will be
addressed on a case-by-case basis in the appropriate rate process.
Comment: A commentor stated that Sections 17.1 and 29.2 require
that a written application for long-term, firm service be submitted to
the ``appropriate Regional Office, as identified in
[[Page 527]]
Attachment K.'' However, Attachment K provides no address, title, or
even a phone number, to which such an application can be submitted.
Western should correct Attachment K to include this information for
each Regional Office.
Response: Western has noted the omission and has included the
appropriate information in Attachment K to the Tariff.
Comment: Two commentors stated that there is no applicable
definition for Federal project use loads.
Response: Western has modified Attachment K to the Tariff to
clarify that Reclamation is responsible for providing Federal power
resources to its project use customers. Western believes that this
modification is sufficient to address this comment.
Comment: A commentor stated that Attachment K should include
language stating that there will be no on-going transmission
reservation maintained for incremental sales and that when Western does
reserve transmission capacity for incremental sales, it will do so
through its Open Access Same-Time Information System (OASIS) and
account for such reservation as a Third Party Sale pursuant to Section
8.0 of the Tariff.
Response: The Tariff provides for the required treatment and
Western has found no reason to include additional language as proposed
by the commentor.
Comment: Western received many comments that raised issues
concerning its obligations to serve Federal loads and the relationship
of this obligation to Western's ability to comply with open access
comparability standards set forth by FERC in Orders No. 888 and 888-A.
The following summarizes the comments.
Western should be consistent between all of its Regional Offices in
treating its existing transmission obligation to Federal customers as
existing Point-to-Point Service. Any new sales Western makes to Federal
customers should be unbundled and accounted for under the Tariff as
Point-to-Point Service. Transmission for incremental sales to Federal
customers should be reserved, provided, and accounted for as Point-to-
Point Transmission Service under the Tariff.
It may be appropriate for Western to identify existing Federal
customers as Native Load, but such partial requirements service at a
discrete Point of Delivery clearly does not meet the definition of
Network Load as set forth in Section 1.22.
To the extent Western has firm service obligations to Federal
customers, reserving firm transmission capacity is appropriate. To the
extent that Western intends to reserve firm transmission on its system
in order to maintain the opportunity to make incremental sales to
Federal customers above and beyond Western's firm obligations under
certain favorable hydrologic conditions, such transmission reservations
for generation merchant activities appear to be in direct conflict with
the functional unbundling requirements of FERC Order No. 888.
Western has not clearly distinguished the jurisdictional separation
of its statutory service from its proposed service under Western's
Tariff. Western needs further revisions to its Tariff to clearly
delineate the jurisdictional difference.
Western should perform two separate, parallel functions: statutory
transmission service and third party transmission service.
Include the term ``Federal Customer'' in various places of the
Tariff other than Attachment K.
In Attachment K, include the word ``retail'' before the word
``Native'' in the sentence which describes Western's treatment of its
Federal customers.
The use of the term ``Native Load'' appears as an intention to
unbundle firm electric service arrangements. Several commentors
disputed Western's claim that its deliveries of power to Federal
customers, defined by Western as ``the statutory and firm electric
service and project use power users of the Federal Government'' are
analogous to a public utility's deliveries to its own native load
customers. Other comments included suggestions on how to redefine
Federal customers and Federal generation and a suggestion that
Western's deliveries were more precisely analogous to a public
utility's retail Native Load.
The reservation provisions (2.2, 13.6 and 33.2) will not work.
First, carried to its extreme, all current firm electric service
contractors could cancel their contracts and be left with the ability
to transfer other resources across Western's system, leaving Western no
system to deliver hydropower.
The curtailment of contractors' firm electric service deliveries
simultaneously with third party use of the system violates Western's
statutory mandate. Another commentor stated that pro rata curtailments
put Western's preference customers in the position of subsidizing third
party transmission contractors.
A qualifier statement should be included in Section 33.0 to explain
the process of load shedding and curtailment to be used, such as ``* *
* that only load shedding and curtailments covered in this section are
for new contracts entered into on the OASIS. They do not include
existing contracts * * *'' Other commentors stated that there is no
indication of how Reclamation's project use loads are served with
Federal transmission capacity and expressed concern as to the
applicability of curtailment.
How will load shedding and curtailment provisions of Section 33.0
work?
Response: Individual project authorization acts have provided
Western the obligation and authority to market capacity and energy
surplus to the needs of these multi-purpose projects. Western manages
its transmission systems to meet these needs as well as to ensure the
reliable operation of the overall transmission systems for which it is
responsible. Section 211 of the Federal Power Act also requires Western
to provide open transmission access. Western will meet all of these
obligations in the following manner. Use of transmission facilities
that Western owns, operates, or to which it has contract rights for
delivery of Federal long-term firm capacity and energy to project use
and electric service customers is a Western responsibility under the
terms and conditions of marketing criteria and electric service
contracts implementing statutory obligations to market Federal power.
This is complementary with the provisions of the Tariff. Transmission
service provided by Western under the Tariff is solely for the use of
ATC in excess of the capability Western requires for deliveries of
long-term firm capacity and energy to project use and electric service
customers of the Federal government. Western has also stated that
nothing in the Tariff shall alter, amend, or abridge the statutory or
contractual obligations of Western to market and deliver Federal power
resources and to repay the Federal investment in its projects.
Western has found it is no longer necessary to state that service
to customers of the Federal government is analogous to service provided
to Native Load Customers by public utilities. The term ``Federal
Customers'' has been deleted from the Tariff. Further, Western
clarifies that deliveries to discrete points of delivery can be made
under existing authorities and contracts and deliveries of additional
power at the same point may be made under the Tariff without violating
the provisions of Section 1.22 of the Tariff. Western will use the
Tariff for all Third Party Sales.
[[Page 528]]
Western will operate its system according to Good Utility
Practices, and unless otherwise provided for in existing contracts or
regulations, will perform curtailments and other emergency procedures
in a non-discriminatory manner in accordance with the terms of the
Tariff and the governance of the National Electric Reliability Council,
an RTG, or ISO as appropriate.
Western has modified the Tariff to be consistent with the above
statements.
Comment: A commentor asked what does the term ``unused capacity''
in Attachment K mean and how does it apply to UGPR? Does Western have
the right to terminate service if it determines the unused capacity no
longer exists?
Response: Attachment K has been modified by deleting the term
``unused capacity''. Once committed to contractually, transmission
capacity will be available to a transmission customer for the duration
of the contract term in conformance with the provisions of the Tariff.
Comment: A commentor stated that preference should apply to rights
to excess capacity on the Federal Transmission System.
Response: Neither Section 9(c) of the Reclamation Project Act of
1939 nor Section 5 of the Flood Control Act of 1944 require Western to
give preference in the sale of excess transmission capacity to any
particular type of entity.
Comment: A commentor stated that Western must jurisdictionally
separate statutory service and tariff service because Western does not
have new Environmental Impact Statements or Endangered Species Act
determinations which indicate Western can provide Network Integration
Transmission Service or Ancillary Services from its generation.
Western's power contracts should not require future unbundling of
transmission service because the unbundling of contracts and power
deliveries may in fact be in contradiction of the environmental
analysis performed for each of the power contract extensions. Another
comment was made that Ancillary Services are generation-related but
were not included in any environmental analyses for river ecosystem,
hydrodam operations, or power marketing.
Response: Western has not committed or proposed any construction of
specific new transmission or generation facilities in the Tariff. The
establishment of contract language and transmission arrangements that
do not involve: (1) The integration of a new generation resource, (2)
physical changes in the transmission system beyond the previously
developed facility area, or (3) changes in the normal operating limits
of generation resources is categorically excluded by DOE regulations
from the preparation of an environmental assessment (EA) or
environmental impact statement (EIS). Nothing in this generic contract
language requires or causes such events to occur. If and when Western
proposes to enter into a contract or transmission agreement which it
reasonably would expect to require or cause such events to occur,
Western will prepare appropriate documentation for its actions in
compliance with the National Environmental Policy Act of 1969, as
amended, 42 U.S.C. 4321-4347, Council of Environmental Quality
regulations, 40 CFR 1500-1508 and DOE regulations at 10 CFR part 1021.
Western's power contracts do not require future unbundling of
transmission service. Decisions related to unbundling will be
determined through a separate process.
Comment: Several commentors stated that they do not see how Western
can maintain its statutory obligations to generate and deliver the
maximum amount of firm capacity and energy to preference customers
while unbundling, unless Western offers other services.
Response: This comment does not accurately describe Western's
statutory obligations. The creation of the Tariff does not affect
Western's obligations under existing contracts.
Comment: A commentor stated that unbundling will produce cost-
shifts in the projects that are statutorily cost-recovery based.
Response: Western is complying with FERC Order Nos. 888 and 888-A.
This requires the unbundling of Ancillary Services from transmission
service for service under the Tariff. The rates for these services are
based on the costs incurred to provide these services. Any revenues
received from these services will be applied to project repayment.
Comment: A commentor stated that unbundling of firm electric
service leaves no recourse but to file under Section 211 of the Federal
Power Act. Customers may need more up-front oversight of Western's
actions, such as Sections 205 and 206 require of FERC jurisdictional
utilities.
Response: Oversight of Western's activities is outside the scope of
this process.
Comment: Two comments were received stating that the reference to
``Western's hydroelectric power facilities'' is incorrect. The
facilities referred to are Reclamation's hydroelectric power
facilities.
Response: Western agrees with this comment.
Comment: A commentor noted that in FERC Order No. 888-A, FERC
decided to implement Service Agreement procedures for firm point-to-
point transactions of less than a year in duration (short-term firm)
that are similar to those for non-firm point-to-point service. In other
words, only one umbrella service agreement needs to be executed.
Subsequent short-term firm transactions need only be requested and
reserved via the OASIS. The commentor encourages Western to include in
its Tariff a form of umbrella service agreement for Short-term Firm
Point-to-Point Transmission Service that will operate in a similar
manner to the Service Agreement for Non-Firm Service.
Response: Western agrees that Attachment A may be used as an
umbrella service agreement for Short-term Firm Point-to-Point
Transmission Service.
Comment: A commentor stated that the Tariff includes modifications
to recognize Western's distinction as a Federal entity, and this seems
to include non-Federal entities under the cloak of Federal law.
Response: These modifications apply to UGPR as the operator/manager
of the Integrated System (IS). These modifications do not bring BEPC or
HCPD under the cloak of Federal law.
Comment: Several commentors commended Western for its efforts in
developing its proposed open access transmission service Tariff. With
the understanding that Western is committed to working to modify its
Tariff when it is found to be warranted, these commentors also support
both the Tariff and Western's filing of the Tariff with FERC.
Response: Western appreciates these comments.
Comment: A commentor stated that all references to stranded costs
should be deleted from the Tariff.
Response: The right to collect stranded costs is recognized in FERC
Order Nos. 888 and 888-A. The stranded cost language in Western's
Tariff is modeled upon the language in FERC's pro forma tariff.
Recovery of stranded costs is neither incorporated in any of the
Regional Office's proposed rates nor in the Open Access Transmission
Rate formula for the UGPR.
Comment: A commentor asked Western what is its authority to collect
stranded costs for BEPC and HCPD.
Response: Attachment K recognizes the right of UGPR, BEPC, and HCPD
to collect stranded costs in accordance
[[Page 529]]
with the principles established in FERC Order Nos. 888 and 888-A.
Attachment K states that the collection of stranded costs by BEPC and
HCPD will be subject to contracts separate from the Tariff.
Comment: Two commentors requested that Western's DSR and SNR
implement the Ancillary Services, Schedules 1 through 6 under the
Tariff, as a separate tariff on an interim basis to resolve areas of
concern.
Response: The provision of Ancillary Services is an integral part
of FERC's pro forma tariff and cannot be separated from Western's
Tariff. Western is concerned that any further qualifiers on the
provision of Ancillary Services could impair Western's ability to pass
FERC's standards for comparability. This, in turn, would impair
Western's ability to obtain reciprocal transmission service from public
utilities. Therefore, Western will not consider implementing the
Ancillary Services portion of the Tariff on an interim basis.
Comment: Two commentors stated that the language in each of the
service schedules concerning pass-through costs from the Control Area
operator does not apply in those cases when Western is not the Control
Area operator. Reclamation does not pass the costs for generation
through the Control Area operator in those cases, but allocates the
costs to Western, who passes the costs through to the transmission
customer.
Response: These provisions provide Western the ability to purchase
capacity and energy from others when it is necessary and pass those
costs on directly to the beneficiary. This is a transaction involving
only the Control Area operator, the transmission customer, and Western.
Comment: A commentor suggested that Western's statutory obligations
prevent it from effectively providing those Ancillary Services which
involve the dedication of generation resources or output to non-Federal
customers. Western should specifically limit itself to brokering these
types of Ancillary Services to its transmission customers.
Response: Western does recognize resource limitations of the
hydroelectric generation. Section 3 of the proposed Tariff was modified
to include the option for Western to purchase Ancillary Services and
pass through such costs to the transmission customer.
Comment: A commentor stated that it understands that Western will
honor existing transmission service contracts without compelling
existing customers to sign a Service Agreement under the Tariff. The
commentor recommended that this commitment be described in Attachment
J.
Response: Western will honor existing transmission service
contracts without compelling existing customers to sign a Service
Agreement under the Tariff. Western does not believe this needs to be
specified in Attachment J. The Tariff provides for any new requests for
transmission service.
Comment: A commentor stated that Western's power factor requirement
should be clearly stated in the Tariff.
Response: There is no single Western power factor requirement.
Western will include the applicable power factor requirement for each
Regional Office in the offered Service Agreements.
Comment: A commentor asked that if the Tariff is binding upon
Western, by what means would the Tariff be made binding on BEPC and
HCPD?
Response: If the IS rate is approved in the rate setting public
process, then the UGPR will enter into the contracts with BEPC and HCPD
for the management and operation of the IS. Such contractual
arrangements will make the terms of the Tariff binding upon BEPC and
HCPD. This would preclude either BEPC or HCPD from making separate
arrangements to sell transmission service over the IS.
Comment: A commentor is very supportive of Attachment F having
provisions for a credit for integrated facilities and looks forward to
negotiations to recognize and equitably credit customer facilities that
have augmented the Federal system.
Response: Western appreciates the comment.
Comment: Western received a comment that Attachment K states that,
``Western will sell transmission service using Federally owned or
controlled facilities only to the extent that transmission capacity is
available in excess of that needed to deliver Federal power.'' This is
inconsistent with the inclusion of non-Federal facilities in the
definition of Transmission System.
Response: This comment is outside of the scope of this process. The
determination of the facilities to be included in the Transmission
System will be developed in the rate process.
Comment: A commentor stated that Attachment K to the Tariff
describes the UGPR's intent to include the facilities of BEPC and HCPD
in the UGPR transmission facilities. UGPR also includes provisions for
recovery of stranded costs. The commentor recommends that the other
Regional Offices' plans for their respective rate-making activities
remain open to the possibility of incorporating this or similar joint
rates.
Response: This issue is better addressed on a case-by-case basis in
the appropriate rate process.
Comment: Several commentors have raised concerns regarding
Western's provisions in the Tariff for changing rates. It appears to
certain commentors that Western may change a rate only to an individual
customer.
Response: The language is not intended to imply that Western will
unilaterally change rates to one customer. Western's Regional Offices
change rates through rate adjustment processes pursuant to Federal law
and apply the rates uniformly to their respective customers.
Comment: Commentors raised a number of issues that related to
Western's rate setting processes, including among others, inclusion of
specific rates and charges with the Tariff, allocation of costs between
transmission and ancillary services, inclusion of various costs and
facilities in transmission rates, and rate setting methodology.
Response: These comments are outside the scope of this process.
Each of Western's Regional Offices is at a different point in the
process of developing open access transmission rates. Western's
Regional Offices follow a separate and distinct process for the
approval of their rates, which involves considerable public involvement
and filing of the final rates with FERC. DOE approval of Western's
rates is addressed in DOE Delegation Order No. 0204-108. Western's
procedures for public involvement for rate procedures are covered in 10
CFR part 903. Filing requirements and procedures for FERC review of
Federal Power Marketing Administration rates are detailed in 18 CFR
part 300. Since Western's rate procedures are handled through so many
separate processes, Western will not include specific rates and charges
in the Tariff.
Comment: A commentor stated that the distinction between the
transmission system used to deliver Federal power to UGPR's customers
and the larger, more expensive system proffered for service to third
parties does not comport with comparability.
Response: Transmission service to existing UGPR firm power
customers is provided for under the provisions of existing contracts.
This is consistent with FERC's treatment of such existing contracts
under FERC Order Nos. 888 and 888-A.
Comment: A UGPR customer commented that in Section 2.2, existing
firm electric service customers should not be subject to paying a
transmission service rate that is different than all
[[Page 530]]
other preference power customers simply due to the timing of a contract
expiration or renewal.
Response: UGPR intends to have a single firm power rate for all
preference customers who execute service agreements for implementation
of the Post-85 Marketing Plan.
Comment: The statutory obligations referred to in Section II of the
Federal Register are significant and important enough to be contained
in the Tariff possibly at Section 11.0 of Attachment J.
Response: Western agrees that the various statutes governing
Western's actions are significant, but does not agree that it would be
appropriate to include a listing in the Tariff.
Comment: Existing preference customers should not be impacted by
Western's commitment to meet the load growth of Network Integration
Transmission Service Customers.
Response: This comment is a rate issue and is outside of the scope
of this process.
Comment: One commentor stated that Western must carefully weigh the
requirements of compliance with FERC Order No. 889 Standards of
Conduct.
Response: Western will comply with FERC Order No. 889.
IV. Summary of Significant Changes From Western's Proposed Tariff
In Section 1.46, Western deleted portions of the additional
language that were not necessary. In Section 1.49, Western reverted to
the pro forma language. In Section 3, Western modified the proposed
additional language to clarify Western's commitment to make every
effort to provide Ancillary Services from purchased generation when
Western's own resources are unavailable. In Section 10.1, Western
removed the proposed additional language.
Western reinstated the last sentence in Section 12.1 except for
``submitted to arbitration and'', and ``arbitration.'' Those two
phrases remained stricken. In Section 12.2, Western replaced the
proposed language with language that refers to RTG dispute resolution
processes.
In Sections 19.4 and 32.4, Western replaced ``provide the required
letter of credit'' with ``pay the transmission customer's share of the
costs'' and added language that Western will refund amounts advanced in
excess of costs incurred.
A minor change was made to Section 29.1 consistent with the minor
change in FERC Order 888-B, 81 FERC para. 61,248, issued November 25,
1997.
In Attachment H, Western removed references to the 10 times penalty
provision. Western moved the provisions relating to the establishment
of an ISO in Attachment J to Attachment A, Attachment B, and Attachment
F. These terms initially will apply only to SNR. Western deleted
provisions relating to third party rights in Attachment J. Western
clarified that Net Billing and Bill Crediting provisions are applicable
only when mutually agreed.
In Attachment K, Western made editorial changes including the
insertion of the address, title, and telephone numbers of the Regional
Office contacts. Western modified its language in Attachment K to
clarify its statutory obligation to market Federal power. The modified
language further clarifies that this Tariff does not affect existing
contractual obligations.
V. Coordination with Adoption of Open Access Transmission Rates
Each of Western's Regional Offices is at a different point in the
process of developing Open Access Transmission Rates. DOE approval of
Western's rates is addressed in DOE Delegation Order No. 0204-108.
Western's procedures for public involvement for rate procedures are
covered in 10 CFR part 903. Filing requirements and procedures for FERC
review of Power Marketing Administration rates are detailed in 18 CFR
part 300. Until the Regional Offices complete the processes of placing
rates in effect for the services to be provided under the open-access
tariff, they will use existing rates when applicable. Rates for short-
term sales may be placed in effect by Western's Administrator and used
when no rates exist for such services.
The new SNR rates for ancillary services and transmission became
effective October 1, 1997, and will be effective for a 5-year period
ending September 30, 2002.
The CRSP CSC is currently conducting a public process to develop
transmission and ancillary service rates consistent with FERC Order
Nos. 888 and 888-A to be used with the Tariff. The public comment
period concluded September 23, 1997. The proposed effective date of the
rates will be April 1, 1998.
The DSR began a public involvement process to develop transmission
and ancillary service rates consistent with FERC Order Nos. 888 and
888-A through a series of informational meetings with its customers
held on March 5, 1997, July 23, 1997, and September 3, 1997. At the
September 3, 1997, meeting, it was determined that the formal process
to develop new rates will not begin until after publication of
Western's Open Access Tariff. As a result, the proposed effective date
for the new rates will be no later than October 1, 1998. DSR will
implement this Tariff using rates for short-term sales approved by
Western's Administrator in December 1997.
The UGPR has implemented Open Access Transmission Rates approved by
Western's Administrator. These transmission rates and ancillary service
rates became effective December 20, 1997, and will expire December 19,
1998. On March 28, 1997, by the mailing of an Advance Announcement of
the transmission rate adjustment for the Pick-Sloan Missouri Basin
Program, Eastern Division, a public process was initiated to establish
long-term Open Access Transmission Rates for the UGPR. UGPR has
received comments from that announcement and published its proposal in
September 1997. The proposed effective date is February 1, 1998.
The Rocky Mountain Region (RMR) began a formal public involvement
process on September 19, 1997, to develop transmission and ancillary
service rates consistent with FERC Order Nos. 888 and 888-A to be used
with the Tariff. The proposed effective date of the rates will be April
1, 1998. The RMR will have rates for short-term sales in effect between
the effective date of the Tariff and April 1, 1998.
Subsequent changes to Regional Office Open Access Transmission
Rates will be completed on a project-by-project basis using the public
involvement and FERC review processes outlined above.
VI. Regulatory Requirements
Review Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget (OMB) is required.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, requires
Federal agencies to perform a regulatory flexibility analysis if a
proposed rule is likely to have a significant economic impact on a
substantial number of small entities. The Acting Administrator for
Western certifies that Western's providing open transmission access
would not cause an adverse economic impact on a substantial number of
such entities. Since the proposed open-access Tariff is of limited
applicability, no flexibility analysis is required.
[[Page 531]]
Review Under the Paperwork Reduction Act:
In accordance with the Paperwork Reduction Act of 1980, 44 U.S.C.
3501-3520, Western has received approval from OMB for the collection of
customer information in this rule, under OMB control number 1910-0100.
Review Under the National Environmental Policy Act
In compliance with the National Environmental Policy Act (NEPA) of
1969, 42 U.S.C. 4321 et. seq.; the Council on Environmental Quality
regulations, 40 CFR parts 1500-1508; DOE NEPA regulations, 10 CFR part
1021, Western has determined that this action is categorically excluded
from the preparation of an EIS or an EA.
Availability of Information
Western's final Tariff and a redline/strikeout comparison of
Western's final Tariff to the FERC pro forma will be available from the
informational contacts listed above or on the Internet at http://
www.wapa.gov.
Dated: December 15, 1997.
Michael S. Hacskaylo,
Acting Administrator.
Open Access Transmission Service Tariff
Table of Contents
Part I. Common Service Provisions
1 Definitions
1.1 Ancillary Services
1.2 Annual Transmission Costs
1.3 Application
1.4 Commission
1.5 Completed Application
1.6 Control Area
1.7 Curtailment
1.8 Delivering Party
1.9 Designated Agent
1.10 Direct Assignment Facilities
1.11 Eligible Customer
1.12 Facilities Study
1.13 Firm Point-To-Point Transmission Service
1.14 Good Utility Practice
1.15 Interruption
1.16 Load Ratio Share
1.17 Load Shedding
1.18 Long-Term Firm Point-To-Point Transmission Service
1.19 Native Load Customers
1.20 Network Customer
1.21 Network Integration Transmission Service
1.22 Network Load
1.23 Network Operating Agreement
1.24 Network Operating Committee
1.25 Network Resource
1.26 Network Upgrades
1.27 Non-Firm Point-To-Point Transmission Service
1.28 Open Access Same-Time Information System
1.29 Part I
1.30 Part I
1.31 Part III
1.32 Parties
1.33 Point(s) of Delivery
1.34 Point(s) of Receipt
1.35 Point-To-Point Transmission Service
1.36 Power Purchaser
1.37 Receiving Party
1.38 Regional Transmission Group
1.39 Reserved Capacity
1.40 Service Agreement
1.41 Service Commencement Date
1.42 Short-Term Firm Point-To-Point Transmission Service
1.43 System Impact Study
1.44 Third-Party Sale
1.45 Transmission Customer
1.46 Transmission Provider
1.47 Transmission Provider's Monthly Transmission System Peak
1.48 Transmission Service
1.49 Transmission System
2 Initial Allocation and Renewal Procedures
2.1 Initial Allocation of Available Transmission Capability
2.2 Reservation Priority For Existing Firm Service Customers
3 Ancillary Services
3.1 Scheduling, System Control and Dispatch Service
3.2 Reactive Supply and Voltage Control from Generation Sources
Service
3.3 Regulation and Frequency Response Service
3.4 Energy Imbalance Service
3.5 Operating Reserve--Spinning Reserve Service
3.6 Operating Reserve--Supplemental Reserve Service
4 Open Access Same-Time Information System (OASIS)
5 Local Furnishing Bonds
5.1 Transmission Providers That Own Facilities Financed by
Local Furnishing Bonds
5.2 Alternative Procedures for Requesting Transmission Service
6 Reciprocity
7 Billing and Payment
7.1 Billing Procedures
7.2 Interest on Unpaid Balances
7.3 Customer Default
8 Accounting for the Transmission Provider's Use of the Tariff
8.1 Transmission Revenues
8.2 Study Costs and Revenues
9 Regulatory Filings
10 Force Majeure and Indemnification
10.1 Force Majeure
10.2 Indemnification
11 Creditworthiness
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures
12.2 External Dispute Resolution Procedures
12.3 Rights Under The Federal Power Act
Part II. Point-to-Point Transmission Service
Preamble
13 Nature of Firm Point-To-Point Transmission Service
13.1 Term
13.2 Reservation Priority
13.3 Use of Firm Transmission Service by the Transmission
Provider
13.4 Service Agreements
13.5 Transmission Customer Obligations for Facility Additions
or Redispatch Costs
13.6 Curtailment of Firm Transmission Service
13.7 Classification of Firm Transmission Service
13.8 Scheduling of Firm Point-To-Point Transmission Service
14 Nature of Non-Firm Point-To-Point Transmission Service
14.1 Term
14.2 Reservation Priority
14.3 Use of Non-Firm Point-To-Point Transmission Service by the
Transmission Provider
14.4 Service Agreements
14.5 Classification of Non-Firm Point-To-Point Transmission
Service
14.6 Scheduling of Non-Firm Point-To-Point Transmission Service
14.7 Curtailment or Interruption of Service
15 Service Availability
15.1 General Conditions
15.2 Determination of Available Transmission Capability
15.3 Initiating Service in the Absence of an Executed Service
Agreement
15.4 Obligation to Provide Transmission Service that Requires
Expansion or Modification of the Transmission System
15.5 Deferral of Service
15.6 Other Transmission Service Schedules
15.7 Real Power Losses
16 Transmission Customer Responsibilities
16.1 Conditions Required of Transmission Customers
16.2 Transmission Customer Responsibility for Third-Party
Arrangements
17 Procedures for Arranging Firm Point-To-Point Transmission Service
17.1 Application
17.2 Completed Application
17.3 Processing Fee
17.4 Notice of Deficient Application
17.5 Response to a Completed Application
17.6 Execution of a Service Agreement
17.7 Extensions for Commencement of Service
18 Procedures for Arranging Non-Firm Point-To-Point Transmission
Service
18.1 Application
18.2 Completed Application
18.3 Reservation of Non-Firm Point-To-Point Transmission Service
18.4 Determination of Available Transmission Capability
19 Additional Study Procedures For Firm Point-To-Point Transmission
Service Requests
19.1 Notice of Need for System Impact Study
19.2 System Impact Study Agreement and Compensation
19.3 System Impact Study Procedures
19.4 Facilities Study Procedures
19.5 Facilities Study Modifications
19.6 Due Diligence in Completing New Facilities
19.7 Partial Interim Service
19.8 Expedited Procedures for New Facilities
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20 Procedures if The Transmission Provider is Unable to Complete New
Transmission Facilities for Firm Point-To-Point Transmission Service
20.1 Delays in Construction of New Facilities
20.2 Alternatives to the Original Facility Additions
20.3 Refund Obligation for Unfinished Facility Additions
21 Provisions Relating to Transmission Construction and Services on
the Systems of Other Utilities
21.1 Responsibility for Third-Party System Additions
21.2 Coordination of Third-Party System Additions
22 Changes in Service Specifications
22.1 Modifications On a Non-Firm Basis
22.2 Modifications On a Firm Basis
23 Sale or Assignment of Transmission Service
23.1 Procedures for Assignment or Transfer of Service
23.2 Limitations on Assignment or Transfer of Service
23.3 Information on Assignment or Transfer of Service
24 Metering and Power Factor Correction at Receipt and Delivery
Point(s)
24.1 Transmission Customer Obligations
24.2 Transmission Provider Access to Metering Data
24.3 Power Factor
25 Compensation for Transmission Service
26 Stranded Cost Recovery
27 Compensation for New Facilities and Redispatch Costs
Part III. Network Integration Transmission Service
Preamble
28 Nature of Network Integration Transmission Service
28.1 Scope of Service
28.2 Transmission Provider Responsibilities
28.3 Network Integration Transmission Service
28.4 Secondary Service
28.5 Real Power Losses
28.6 Restrictions on Use of Service
29 Initiating Service
29.1 Condition Precedent for Receiving Service
29.2 Application Procedures
29.3 Technical Arrangements to be Completed Prior to
Commencement of Service
29.4 Network Customer Facilities
29.5 This section is intentionally left blank
30 Network Resources
30.1 Designation of Network Resources
30.2 Designation of New Network Resources
30.3 Termination of Network Resources
30.4 Operation of Network Resources
30.5 Network Customer Redispatch Obligation
30.6 Transmission Arrangements for Network Resources Not
Physically Interconnected With The Transmission Provider
30.7 Limitation on Designation of Network Resources
30.8 Use of Interface Capacity by the Network Customer
30.9 Network Customer Owned Transmission Facilities
31 Designation of Network Load
31.1 Network Load
31.2 New Network Loads Connected With the Transmission Provider
31.3 Network Load Not Physically Interconnected with the
Transmission Provider
31.4 New Interconnection Points
31.5 Changes in Service Requests
31.6 Annual Load and Resource Information Updates
32 Additional Study Procedures For Network Integration Transmission
Service Requests
32.1 Notice of Need for System Impact Study
32.2 System Impact Study Agreement and Compensation
32.3 System Impact Study Procedures
32.4 Facilities Study Procedures
33 Load Shedding and Curtailments
33.1 Procedures
33.2 Transmission Constraints
33.3 Cost Responsibility for Relieving Transmission Constraints
33.4 Curtailments of Scheduled Deliveries
33.5 Allocation of Curtailments
33.6 Load Shedding
33.7 System Reliability
34 Rates and Charges
34.1 Monthly Demand Charge
34.2 Determination of Network Customer's Monthly Network Load
34.3 Determination of Transmission Provider's Monthly
Transmission System Load
34.4 Redispatch Charge
34.5 Stranded Cost Recovery
35 Operating Arrangements
35.1 Operation under The Network Operating Agreement
35.2 Network Operating Agreement
35.3 Network Operating Committee
Schedule 1 Scheduling, System Control and Dispatch Service
Schedule 2 Reactive Supply and Voltage Control from Generation
Sources Service
Schedule 3 Regulation and Frequency Response Service
Schedule 4 Energy Imbalance Service
Schedule 5 Operating Reserve--Spinning Reserve Service
Schedule 6 Operating Reserve--Supplemental Reserve Service
Schedule 7 long-Term Firm and Short-Term Firm Point-to-Point
Transmission Service
Schedule 8 Non-Firm Point-to-Point Transmission Service
Attachment A Form of Service Agreement For Firm Point-to-Point
Transmission Service
Attachment B Form of Service Agreement For Non-Firm Point-to-Point
Transmission Service
Attachment C Methodology to Assess Available Transmission Capability
Attachment D Methodology for Completing a System Impact Study
Attachment E Index of Point-to-Point Transmission Service Customers
Attachment F Service Agreement For Network Integration Transmission
Service
Attachment G Network Operating Agreement
Attachment H Annual Transmission Revenue Requirement For Network
Integration Transmission Service
Attachment I Index of Network Integration Transmission Service
Customers
Attachment J Provisions Specific to the Transmission Provider
Attachment K Transmission Provider Authorities and Obligations
Open Access Transmission Service Tariff
I. Part I. Common Service Provisions
1 Definitions
1.1 Ancillary Services: Those services that are necessary to
support the transmission of capacity and energy from resources to loads
while maintaining reliable operation of the Transmission Provider's
Transmission System in accordance with Good Utility Practice.
1.2 Annual Transmission Costs: The total annual cost of the
Transmission System for purposes of Network Integration Transmission
Service shall be the amount specified in Attachment H until amended by
the Transmission Provider or modified by the Commission, pursuant to
Federal Law.
1.3 Application: A request by an Eligible Customer for transmission
service pursuant to the provisions of the Tariff.
1.4 Commission: The Federal Energy Regulatory Commission.
1.5 Completed Application: An Application that satisfies all of the
information and other requirements of the Tariff, including any
required application processing fee.
1.6 Control Area: An electric power system or combination of
electric power systems to which a common automatic generation control
scheme is applied in order to:
(1) Match, at all times, the power output of the generators within
the electric power system(s) and capacity and energy purchased from
entities outside the electric power system(s), with the load within the
electric power system(s);
(2) Maintain scheduled interchange with other Control Areas, within
the limits of Good Utility Practice;
(3) Maintain the frequency of the electric power system(s) within
reasonable limits in accordance with Good Utility Practice; and
(4) Provide sufficient generating capacity to maintain operating
reserves in accordance with Good Utility Practice.
1.7 Curtailment: A reduction in firm or non-firm transmission
service in response to a transmission capacity
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shortage as a result of system reliability conditions.
1.8 Delivering Party: The entity supplying capacity and energy to
be transmitted at Point(s) of Receipt.
1.9 Designated Agent: Any entity that performs actions or functions
on behalf of the Transmission Provider, an Eligible Customer, or the
Transmission Customer required under the Tariff.
1.10 Direct Assignment Facilities: Facilities or portions of
facilities that are constructed by the Transmission Provider for the
sole use/benefit of a particular Transmission Customer requesting
service under the Tariff. Direct Assignment Facilities shall be
specified in the Service Agreement that governs service to the
Transmission Customer.
1.11 Eligible Customer: (i) Any electric utility (including the
Transmission Provider and any power marketer), Federal power marketing
agency, or any person generating electric energy for sale for resale is
an Eligible Customer under the Tariff. Electric energy sold or produced
by such entity may be electric energy produced in the United States,
Canada or Mexico. However, with respect to transmission service that
the Commission is prohibited from ordering by Section 212(h) of the
Federal Power Act, such entity is eligible only if the service is
provided pursuant to a state requirement that the Transmission Provider
offer the unbundled transmission service, or pursuant to a voluntary
offer of such service by the Transmission Provider. (ii) Any retail
customer taking unbundled transmission service pursuant to a state
requirement that the Transmission Provider offer the transmission
service, or pursuant to a voluntary offer of such service by the
Transmission Provider, is an Eligible Customer under the Tariff.
1.12 Facilities Study: An engineering study conducted by the
Transmission Provider to determine the required modifications to the
Transmission Provider's Transmission System, including the cost and
scheduled completion date for such modifications, that will be required
to provide the requested transmission service.
1.13 Firm Point-To-Point Transmission Service: Transmission
Service under this Tariff that is reserved and/or scheduled between
specified Points of Receipt and Delivery pursuant to Part II of this
Tariff.
1.14 Good Utility Practice: Any of the practices, methods and acts
engaged in or approved by a significant portion of the electric utility
industry during the relevant time period, or any of the practices,
methods and acts which, in the exercise of reasonable judgment in light
of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost
consistent with good business practices, reliability, safety and
expedition. Good Utility Practice is not intended to be limited to the
optimum practice, method, or act to the exclusion of all others, but
rather to be acceptable practices, methods, or acts generally accepted
in the region.
1.15 Interruption: A reduction in non-firm transmission service
due to economic reasons pursuant to Section 14.7.
1.16 Load Ratio Share: Ratio of a Transmission Customer's Network
Load to the Transmission Provider's total load computed in accordance
with Sections 34.2 and 34.3 of the Network Integration Transmission
Service under Part III of the Tariff and calculated on a rolling twelve
month basis.
1.17 Load Shedding: The systematic reduction of system demand by
temporarily decreasing load in response to transmission system or area
capacity shortages, system instability, or voltage control
considerations under Part III of the Tariff.
1.18 Long-Term Firm Point-To-Point Transmission Service: Firm
Point-To-Point Transmission Service under Part II of the Tariff with a
term of one year or more.
1.19 Native Load Customers: The wholesale and retail power
customers of the Transmission Provider on whose behalf the Transmission
Provider, by statute, franchise, regulatory requirement, or contract,
has undertaken an obligation to construct and operate the Transmission
Provider's system to meet the reliable electric needs of such
customers.
1.20 Network Customer: An entity receiving transmission service
pursuant to the terms of the Transmission Provider's Network
Integration Transmission Service under Part III of the Tariff.
1.21 Network Integration Transmission Service: The transmission
service provided under Part III of the Tariff.
1.22 Network Load: The load that a Network Customer designates for
Network Integration Transmission Service under Part III of the Tariff.
The Network Customer's Network Load shall include all load served by
the output of any Network Resources designated by the Network Customer.
A Network Customer may elect to designate less than its total load as
Network Load but may not designate only part of the load at a discrete
Point of Delivery. Where an Eligible Customer has elected not to
designate a particular load at discrete points of delivery as Network
Load, the Eligible Customer is responsible for making separate
arrangements under Part II of the Tariff for any Point-To-Point
Transmission Service that may be necessary for such non-designated
load.
1.23 Network Operating Agreement: An executed agreement that
contains the terms and conditions under which the Network Customer
shall operate its facilities and the technical and operational matters
associated with the implementation of Network Integration Transmission
Service under Part III of the Tariff.
1.24 Network Operating Committee: A group made up of
representatives from the Network Customer(s) and the Transmission
Provider established to coordinate operating criteria and other
technical considerations required for implementation of Network
Integration Transmission Service under Part III of this Tariff.
1.25 Network Resource: Any designated generating resource owned,
purchased, or leased by a Network Customer under the Network
Integration Transmission Service Tariff. Network Resources do not
include any resource, or any portion thereof, that is committed for
sale to third parties or otherwise cannot be called upon to meet the
Network Customer's Network Load on a non-interruptible basis.
1.26 Network Upgrades: Modifications or additions to transmission-
related facilities that are integrated with and support the
Transmission Provider's overall Transmission System for the general
benefit of all users of such Transmission System.
1.27 Non-Firm Point-To-Point Transmission Service: Point-To-Point
Transmission Service under the Tariff that is reserved and scheduled on
an as-available basis and is subject to Curtailment or Interruption as
set forth in Section 14.7 under Part II of the Tariff. Non-Firm Point-
To-Point Transmission Service is available on a stand-alone basis for
periods ranging from one hour to one month.
1.28 Open Access Same-Time Information System (OASIS): The
information system and standards of conduct contained in Part 37 of the
Commission's regulations and all additional requirements implemented by
subsequent Commission orders dealing with OASIS.
1.29 Part I: Tariff Definitions and Common Service Provisions
contained in Sections 2 through 12.
1.30 Part II: Tariff Sections 13 through 27 pertaining to Point-
To-Point
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Transmission Service in conjunction with the applicable Common Service
Provisions of Part I and appropriate Schedules and Attachments.
1.31 Part III: Tariff Sections 28 through 35 pertaining to Network
Integration Transmission Service in conjunction with the applicable
Common Service Provisions of Part I and appropriate Schedules and
Attachments.
1.32 Parties: The Transmission Provider and the Transmission
Customer receiving service under the Tariff.
1.33 Point(s) of Delivery: Point(s) on the Transmission Provider's
Transmission System where capacity and energy transmitted by the
Transmission Provider will be made available to the Receiving Party
under Part II of the Tariff. The Point(s) of Delivery shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.34 Point(s) of Receipt: Point(s) of interconnection on the
Transmission Provider's Transmission System where capacity and energy
will be made available to the Transmission Provider by the Delivering
Party under Part II of the Tariff. The Point(s) of Receipt shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.35 Point-To-Point Transmission Service: The reservation and
transmission of capacity and energy on either a firm or non-firm basis
from the Point(s) of Receipt to the Point(s) of Delivery under Part II
of the Tariff.
1.36 Power Purchaser: The entity that is purchasing the capacity
and energy to be transmitted under the Tariff.
1.37 Receiving Party: The entity receiving the capacity and energy
transmitted by the Transmission Provider to Point(s) of Delivery.
1.38 Regional Transmission Group (RTG): A voluntary organization
of transmission owners, transmission users and other entities approved
by the Commission to efficiently coordinate transmission planning (and
expansion), operation and use on a regional (and interregional) basis.
1.39 Reserved Capacity: The maximum amount of capacity and energy
that the Transmission Provider agrees to transmit for the Transmission
Customer over the Transmission Provider's Transmission System between
the Point(s) of Receipt and the Point(s) of Delivery under Part II of
the Tariff. Reserved Capacity shall be expressed in terms of whole
megawatts on a sixty (60) minute interval (commencing on the clock
hour) basis.
1.40 Service Agreement: The initial agreement and any amendments
or supplements thereto entered into by the Transmission Customer and
the Transmission Provider for service under the Tariff.
1.41 Service Commencement Date: The date the Transmission Provider
begins to provide service pursuant to the terms of an executed Service
Agreement, or the date the Transmission Provider begins to provide
service in accordance with Section 15.3 or Section 29.1 under the
Tariff.
1.42 Short-Term Firm Point-To-Point Transmission Service: Firm
Point-To-Point Transmission Service under Part II of the Tariff with a
term of less than one year.
1.43 System Impact Study: An assessment by the Transmission
Provider of (i) the adequacy of the Transmission System to accommodate
a request for either Firm Point-To-Point Transmission Service or
Network Integration Transmission Service and (ii) whether any
additional costs may be incurred in order to provide transmission
service.
1.44 Third-Party Sale: Any sale for resale in interstate commerce
to a Power Purchaser that is not designated as part of Network Load
under the Network Integration Transmission Service.
1.45 Transmission Customer: Any Eligible Customer (or its
Designated Agent) that (i) executes a Service Agreement, or (ii)
requests in writing that the Transmission Provider provide transmission
service without a Service Agreement, pursuant to section 15.3 of the
Tariff. This term is used in the Part I Common Service Provisions to
include customers receiving transmission service under Part II and Part
III of this Tariff.
1.46 Transmission Provider: The Regional Office of the Western
Area Power Administration (Western) which owns, controls, or operates
the facilities used for the transmission of electric energy in
interstate commerce and provides transmission service under the Tariff.
1.47 Transmission Provider's Monthly Transmission System Peak: The
maximum firm usage of the Transmission Provider's Transmission System
in a calendar month.
1.48 Transmission Service: Point-To-Point Transmission Service
provided under Part II of the Tariff on a firm and non-firm basis.
1.49 Transmission System: The facilities owned, controlled or
operated by the Transmission Provider that are used to provide
transmission service under Part II and Part III of the Tariff.
2 Initial Allocation and Renewal Procedures
2.1 Initial Allocation of Available Transmission Capability
For purposes of determining whether existing capability on the
Transmission Provider's Transmission System is adequate to accommodate
a request for firm service under this Tariff, all Completed
Applications for new firm transmission service received during the
initial sixty (60) day period commencing with the effective date of the
Tariff will be deemed to have been filed simultaneously. A lottery
system conducted by an independent party shall be used to assign
priorities for Completed Applications filed simultaneously. All
Completed Applications for firm transmission service received after the
initial sixty (60) day period shall be assigned a priority pursuant to
Section 13.2.
2.2 Reservation Priority For Existing Firm Service Customers
Existing firm service customers (wholesale requirements and
transmission-only, with a contract term of one-year or more), have the
right to continue to take transmission service from the Transmission
Provider when the contract expires, rolls over or is renewed. This
transmission reservation priority is independent of whether the
existing customer continues to purchase capacity and energy from the
Transmission Provider or elects to purchase capacity and energy from
another supplier. If at the end of the contract term, the Transmission
Provider's Transmission System cannot accommodate all of the requests
for transmission service, the existing firm service customer must agree
to accept a contract term at least equal to a competing request by any
new Eligible Customer and to pay the current rate for such service.
This transmission reservation priority for existing firm service
customers is an ongoing right that may be exercised at the end of all
firm contract terms of one-year or longer.
3 Ancillary Services
Ancillary Services are needed with transmission service to maintain
reliability within and among the Control Areas affected by the
transmission service. The Transmission Provider is required to provide
(or offer to arrange with the local Control Area operator as discussed
below), and the Transmission Customer is required to purchase, the
following Ancillary Services (i) Scheduling, System Control and
Dispatch, and (ii) Reactive Supply and
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Voltage Control from Generation Sources.
The Transmission Provider is required to offer to provide (or offer
to arrange with the local Control Area operator as discussed below) the
following Ancillary Services only to the Transmission Customer serving
load within the Transmission Provider's Control Area (i) Regulation and
Frequency Response, (ii) Energy Imbalance, (iii) Operating Reserve--
Spinning, and (iv) Operating Reserve--Supplemental. The Transmission
Customer serving load within the Transmission Provider's Control Area,
is required to acquire these Ancillary Services, whether from the
Transmission Provider, from a third party, or by self-supply. The
Transmission Customer may not decline the Transmission Provider's offer
of Ancillary Services unless it demonstrates that it has acquired the
Ancillary Services from another source. However, when sufficient
Federal generation is not available to provide the required Ancillary
Services, the Transmission Provider will offer to make every effort to
purchase Ancillary Services from others, as available. The costs of
such purchases on behalf of a Transmission Customer will be passed
directly through to that Transmission Customer. The Transmission
Customer must list in its Application which Ancillary Services it will
purchase from the Transmission Provider.
If the Transmission Provider is a utility providing transmission
service, but is not a Control Area operator, it may be unable to
provide some or all of the Ancillary Services. In this case, the
Transmission Provider can fulfill its obligation to provide Ancillary
Services by acting as the Transmission Customer's agent to secure these
Ancillary Services from the Control Area operator. The Transmission
Customer may elect to (i) have the Transmission Provider act as its
agent, (ii) secure the Ancillary Services directly from the Control
Area operator, or (iii) secure the Ancillary Services (discussed in
Schedules 3, 4, 5, and 6) from a third party or by self-supply when
technically feasible.
The Transmission Provider shall specify the rate treatment and all
related terms and conditions in the event of an unauthorized use of
Ancillary Services by the Transmission Customer.
The specific Ancillary Services, prices and/or compensation methods
for each are described on the Schedules that are attached to and made a
part of the Tariff. Three principal requirements apply to discounts for
Ancillary Services provided by the Transmission Provider in conjunction
with its provision of transmission service as follows: (1) Any offer of
a discount made by the Transmission Provider must be announced to all
Eligible Customers solely by posting on the OASIS, (2) any customer-
initiated requests for discounts (including requests for use by one's
wholesale merchant or an affiliate's use) must occur solely by posting
on the OASIS, and (3) once a discount is negotiated, details must be
immediately posted on the OASIS. A discount agreed upon for an
Ancillary Service must be offered for the same period to all Eligible
Customers on the Transmission Provider's system. Sections 3.1 through
3.6 below list the six Ancillary Services.
3.1 Scheduling, System Control and Dispatch Service: The rates
and/or methodology are described in Schedule 1.
3.2 Reactive Supply and Voltage Control from Generation Sources
Service: The rates and/or methodology are described in Schedule 2.
3.3 Regulation and Frequency Response Service: Where applicable
the rates and/or methodology are described in Schedule 3.
3.4 Energy Imbalance Service: Where applicable the rates and/or
methodology are described in Schedule 4.
3.5 Operating Reserve--Spinning Reserve Service: Where applicable
the rates and/or methodology are described in Schedule 5.
3.6 Operating Reserve--Supplemental Reserve Service: Where
applicable the rates and/or methodology are described in Schedule 6.
4 Open Access Same-Time Information System (OASIS)
Terms and conditions regarding Open Access Same-Time Information
System and standards of conduct are set forth in 18 CFR 37 of the
Commission's regulations (Open Access Same-Time Information System and
Standards of Conduct for Public Utilities). In the event available
transmission capability as posted on the OASIS is insufficient to
accommodate a request for firm transmission service, additional studies
may be required as provided by this Tariff pursuant to Sections 19 and
32.
5 Local Furnishing Bonds
5.1 Transmission Providers That Own Facilities Financed by Local
Furnishing Bonds
This provision is applicable only to Transmission Providers that
have financed facilities for the local furnishing of electric energy
with tax-exempt bonds, as described in Section 142(f) of the Internal
Revenue Code (``local furnishing bonds''). Notwithstanding any other
provision of this Tariff, the Transmission Provider shall not be
required to provide transmission service to any Eligible Customer
pursuant to this Tariff if the provision of such transmission service
would jeopardize the tax-exempt status of any local furnishing bond(s)
used to finance the Transmission Provider's facilities that would be
used in providing such transmission service.
5.2 Alternative Procedures for Requesting Transmission Service
(i) If the Transmission Provider determines that the provision of
transmission service requested by an Eligible Customer would jeopardize
the tax-exempt status of any local furnishing bond(s) used to finance
its facilities that would be used in providing such transmission
service, it shall advise the Eligible Customer within thirty (30) days
of receipt of the Completed Application.
(ii) If the Eligible Customer thereafter renews its request for the
same transmission service referred to in (i) by tendering an
application under Section 211 of the Federal Power Act, the
Transmission Provider, within ten (10) days of receiving a copy of the
Section 211 application, will waive its rights to a request for service
under Section 213(a) of the Federal Power Act and to the issuance of a
proposed order under Section 212(c) of the Federal Power Act. The
Commission, upon receipt of the Transmission Provider's waiver of its
rights to a request for service under Section 213(a) of the Federal
Power Act and to the issuance of a proposed order under Section 212(c)
of the Federal Power Act, shall issue an order under Section 211 of the
Federal Power Act. Upon issuance of the order under Section 211 of the
Federal Power Act, the Transmission Provider shall be required to
provide the requested transmission service in accordance with the terms
and conditions of this Tariff.
6 Reciprocity
A Transmission Customer receiving transmission service under this
Tariff agrees to provide comparable transmission service that it is
capable of providing to the Transmission Provider on similar terms and
conditions over facilities used for the transmission of electric energy
owned, controlled or operated by the Transmission Customer and over
facilities used for the transmission of electric energy owned,
controlled or operated by the Transmission Customer's corporate
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affiliates. A Transmission Customer that is a member of a power pool or
Regional Transmission Group also agrees to provide comparable
transmission service to the members of such power pool and Regional
Transmission Group on similar terms and conditions over facilities used
for the transmission of electric energy owned, controlled or operated
by the Transmission Customer and over facilities used for the
transmission of electric energy owned, controlled or operated by the
Transmission Customer's corporate affiliates.
This reciprocity requirement applies not only to the Transmission
Customer that obtains transmission service under the Tariff, but also
to all parties to a transaction that involves the use of transmission
service under the Tariff, including the power seller, buyer and any
intermediary, such as a power marketer. This reciprocity requirement
also applies to any Eligible Customer that owns, controls or operates
transmission facilities that uses an intermediary, such as a power
marketer, to request transmission service under the Tariff. If the
Transmission Customer does not own, control or operate transmission
facilities, it must include in its Application a sworn statement of one
of its duly authorized officers or other representatives that the
purpose of its Application is not to assist an Eligible Customer to
avoid the requirements of this provision.
7 Billing and Payment
7.1 Billing Procedures
Within a reasonable time after the first day of each month, the
Transmission Provider shall submit an invoice to the Transmission
Customer for the charges for all services furnished under the Tariff
during the preceding month. The invoice shall be paid by the
Transmission Customer within twenty (20) days of receipt. All payments
shall be made in immediately available funds payable to the
Transmission Provider, or by wire transfer to a bank named by the
Transmission Provider.
7.2 Interest on Unpaid Balances
Interest on any unpaid amounts (including amounts placed in escrow)
shall be calculated in accordance with the methodology specified for
interest on refunds in the Commission's regulations at 18 CFR
35.19a(a)(2)(iii). Interest on delinquent amounts shall be calculated
from the due date of the bill to the date of payment. When payments are
made by mail, bills shall be considered as having been paid on the date
of receipt by the Transmission Provider.
7.3 Customer Default
In the event the Transmission Customer fails, for any reason other
than a billing dispute as described below, to make payment to the
Transmission Provider on or before the due date as described above, and
such failure of payment is not corrected within thirty (30) calendar
days after the Transmission Provider notifies the Transmission Customer
to cure such failure, a default by the Transmission Customer shall be
deemed to exist. Within the same 30 calendar days after notice of
failure to make payment, the Transmission Customer shall have the right
of appeal to the Administrator of Western. The Transmission Provider
shall submit its recommendation to the Administrator for review and
approval, but shall not terminate service until the Administrator makes
a determination on the Transmission Customer's appeal. In the event of
a billing dispute between the Transmission Provider and the
Transmission Customer, the Transmission Provider will continue to
provide service under the Service Agreement as long as the Transmission
Customer (i) continues to make all payments not in dispute, and (ii)
pays into an independent escrow account the portion of the invoice in
dispute, pending resolution of such dispute. If the Transmission
Customer fails to meet these two requirements for continuation of
service, then the Transmission Provider may provide notice to the
Transmission Customer of its intention to suspend service in sixty (60)
days, in accordance with Commission policy.
8 Accounting for the Transmission Provider's Use of the Tariff
The Transmission Provider shall record the following amounts, as
outlined below.
8.1 Transmission Revenues
Include in a separate operating revenue account or subaccount the
revenues it receives from Transmission Service when making Third-Party
Sales under Part II of the Tariff.
8.2 Study Costs and Revenues
Include in a separate transmission operating expense account or
subaccount, costs properly chargeable to expense that are incurred to
perform any System Impact Studies or Facilities Studies which the
Transmission Provider conducts to determine if it must construct new
transmission facilities or upgrades necessary for its own uses,
including making Third-Party Sales under the Tariff; and include in a
separate operating revenue account or subaccount the revenues received
for System Impact Studies or Facilities Studies performed when such
amounts are separately stated and identified in the Transmission
Customer's billing under the Tariff.
9 Regulatory Filings
Nothing contained in the Tariff or any Service Agreement shall be
construed as affecting in any way the ability of any Party receiving
service under the Tariff to exercise its rights under the Federal Power
Act and pursuant to the Commission's rules and regulations promulgated
thereunder.
10 Force Majeure and Indemnification
10.1 Force Majeure
An event of Force Majeure means any act of God, labor disturbance,
act of the public enemy, war, insurrection, riot, fire, storm or flood,
explosion, breakage or accident to machinery or equipment, any
Curtailment, order, regulation or restriction imposed by governmental
military or lawfully established civilian authorities, or any other
cause beyond a Party's control. A Force Majeure event does not include
an act of negligence or intentional wrongdoing. Neither the
Transmission Provider nor the Transmission Customer will be considered
in default as to any obligation under this Tariff if prevented from
fulfilling the obligation due to an event of Force Majeure. However, a
Party whose performance under this Tariff is hindered by an event of
Force Majeure shall make all reasonable efforts to perform its
obligations under this Tariff.
10.2 Indemnification
The Transmission Customer shall at all times indemnify, defend, and
save the Transmission Provider harmless from, any and all damages,
losses, claims, including claims and actions relating to injury to or
death of any person or damage to property, demands, suits, recoveries,
costs and expenses, court costs, attorney fees, and all other
obligations by or to third parties, arising out of or resulting from
the Transmission Provider's performance of its obligations under this
Tariff on behalf of the Transmission Customer, except in cases of
negligence or intentional wrongdoing by the Transmission Provider. The
liability of the Transmission Provider shall be determined in
accordance with the provisions of the Federal Tort Claims Act, as
amended.
[[Page 537]]
11 Creditworthiness
For the purpose of determining the ability of the Transmission
Customer to meet its obligations related to service hereunder, the
Transmission Provider may require reasonable credit review procedures.
This review shall be made in accordance with standard commercial
practices. In addition, the Transmission Provider may require the
Transmission Customer to provide and maintain in effect during the term
of the Service Agreement, an unconditional and irrevocable letter of
credit as security to meet its responsibilities and obligations under
the Tariff, or an alternative form of security proposed by the
Transmission Customer and acceptable to the Transmission Provider and
consistent with commercial practices established by the Uniform
Commercial Code that protects the Transmission Provider against the
risk of non-payment.
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures
Any dispute between a Transmission Customer and the Transmission
Provider involving transmission service under the Tariff shall be
referred to a designated senior representative of the Transmission
Provider and a senior representative of the Transmission Customer for
resolution on an informal basis as promptly as practicable. In the
event the designated representatives are unable to resolve the dispute
within thirty (30) days (or such other period as the Parties may agree
upon) by mutual agreement, such dispute may be resolved in accordance
with the procedures set forth below.
12.2 External Dispute Resolution Procedures
Any complaint arising concerning implementation of this Tariff
shall be resolved as follows:
(a) Through a dispute resolution process, pursuant to the terms of
a Regional Transmission Group governing agreement of which both Parties
are members; or
(b) If both Parties are not members of the same Regional
Transmission Group, through a dispute resolution process agreed to by
the Parties, or through a transmission complaint filed with the
Commission to the extent the Commission has jurisdiction over such
dispute.
12.3 Rights Under The Federal Power Act
Nothing in this section shall restrict the rights of any party to
file a Complaint with the Commission under relevant provisions of the
Federal Power Act.
Part II. Point-to-Point Transmission Service
Preamble
The Transmission Provider will provide Firm and Non-Firm Point-To-
Point Transmission Service pursuant to the applicable terms and
conditions of this Tariff. Point-To-Point Transmission Service is for
the receipt of capacity and energy at designated Point(s) of Receipt
and the transmission of such capacity and energy to designated Point(s)
of Delivery.
13 Nature of Firm Point-To-Point Transmission Service
13.1 Term
The minimum term of Firm Point-To-Point Transmission Service shall
be one day and the maximum term shall be specified in the Service
Agreement.
13.2 Reservation Priority
Long-Term Firm Point-To-Point Transmission Service shall be
available on a first-come, first-served basis i.e., in the
chronological sequence in which each Transmission Customer reserved
service. Reservations for Short-Term Firm Point-To-Point Transmission
Service will be conditional based upon the length of the requested
transaction. If the Transmission System becomes oversubscribed,
requests for longer term service may preempt requests for shorter term
service up to the following deadlines; one day before the commencement
of daily service, one week before the commencement of weekly service,
and one month before the commencement of monthly service. Before the
conditional reservation deadline, if available transmission capability
is insufficient to satisfy all Applications, an Eligible Customer with
a reservation for shorter term service has the right of first refusal
to match any longer term reservation before losing its reservation
priority. A longer term competing request for Short-Term Firm Point-To-
Point Transmission Service will be granted if the Eligible Customer
with the right of first refusal does not agree to match the competing
request within 24 hours (or earlier if necessary to comply with the
scheduling deadlines provided in Section 13.8) from being notified by
the Transmission Provider of a longer-term competing request for Short-
Term Firm Point-To-Point Transmission Service. After the conditional
reservation deadline, service will commence pursuant to the terms of
Part II of the Tariff. Firm Point-To-Point Transmission Service will
always have a reservation priority over Non-Firm Point-To-Point
Transmission Service under the Tariff. All Long-Term Firm Point-To-
Point Transmission Service will have equal reservation priority with
Native Load Customers and Network Customers. Reservation priorities for
existing firm service customers are provided in Section 2.2.
13.3 Use of Firm Transmission Service by the Transmission Provider
The Transmission Provider will be subject to the rates, terms and
conditions of Part II of the Tariff when making Third-Party Sales under
agreements executed on or after March 9, 1998. The Transmission
Provider will maintain separate accounting, pursuant to Section 8, for
any use of the Point-To-Point Transmission Service to make Third-Party
Sales.
13.4 Service Agreements
The Transmission Provider shall offer a standard form Firm Point-
To-Point Transmission Service Agreement (Attachment A) to an Eligible
Customer when it submits a Completed Application for Long-Term Firm
Point-To-Point Transmission Service. The Transmission Provider shall
offer a standard form Firm Point-to-Point Transmission Service
Agreement (Attachment A) to an Eligible Customer when it first submits
a Completed Application for Short-Term Firm Point-to-Point Transmission
Service pursuant to the Tariff.
13.5 Transmission Customer Obligations for Facility Additions or
Redispatch Costs
In cases where the Transmission Provider determines that the
Transmission System is not capable of providing Firm Point-To-Point
Transmission Service without (1) degrading or impairing the reliability
of service to Native Load Customers, Network Customers and other
Transmission Customers taking Firm Point-To-Point Transmission Service,
or (2) interfering with the Transmission Provider's ability to meet
prior firm contractual commitments to others, the Transmission Provider
will be obligated to expand or upgrade its Transmission System pursuant
to the terms of Section 15.4. The Transmission Customer must agree to
compensate the Transmission Provider in advance for any necessary
transmission facility additions pursuant to the terms of Section 27. To
the extent the Transmission Provider can relieve any system constraint
more economically by redispatching the Transmission Provider's
resources than
[[Page 538]]
through constructing Network Upgrades, it shall do so, provided that
the Eligible Customer agrees to compensate the Transmission Provider
pursuant to the terms of Section 27. Any redispatch, Network Upgrade or
Direct Assignment Facilities costs to be charged to the Transmission
Customer on an incremental basis under the Tariff will be specified in
the Service Agreement or a separate agreement, as appropriate, prior to
initiating service.
13.6 Curtailment of Firm Transmission Service
In the event that a Curtailment on the Transmission Provider's
Transmission System, or a portion thereof, is required to maintain
reliable operation of such system, Curtailments will be made on a non-
discriminatory basis to the transaction(s) that effectively relieve the
constraint. If multiple transactions require Curtailment, to the extent
practicable and consistent with Good Utility Practice, the Transmission
Provider will curtail service to Network Customers and Transmission
Customers taking Firm Point-To-Point Transmission Service on a basis
comparable to the curtailment of service to the Transmission Provider's
Native Load Customers. All Curtailments will be made on a non-
discriminatory basis, however, Non-Firm Point-To-Point Transmission
Service shall be subordinate to Firm Transmission Service. When the
Transmission Provider determines that an electrical emergency exists on
its Transmission System and implements emergency procedures to Curtail
Firm Transmission Service, the Transmission Customer shall make the
required reductions upon request of the Transmission Provider. However,
the Transmission Provider reserves the right to Curtail, in whole or in
part, any Firm Transmission Service provided under the Tariff when, in
the Transmission Provider's sole discretion, an emergency or other
unforeseen condition impairs or degrades the reliability of its
Transmission System. The Transmission Provider will notify all affected
Transmission Customers in a timely manner of any scheduled
Curtailments.
13.7 Classification of Firm Transmission Service
(a) The Transmission Customer taking Firm Point-To-Point
Transmission Service may (1) change its Receipt and Delivery Points to
obtain service on a non-firm basis consistent with the terms of Section
22.1 or (2) request a modification of the Points of Receipt or Delivery
on a firm basis pursuant to the terms of Section 22.2.
(b) The Transmission Customer may purchase transmission service to
make sales of capacity and energy from multiple generating units that
are on the Transmission Provider's Transmission System. For such a
purchase of transmission service, the resources will be designated as
multiple Points of Receipt, unless the multiple generating units are at
the same generating plant in which case the units would be treated as a
single Point of Receipt.
(c) The Transmission Provider shall provide firm deliveries of
capacity and energy from the Point(s) of Receipt to the Point(s) of
Delivery. Each Point of Receipt at which firm transmission capacity is
reserved by the Transmission Customer shall be set forth in the Firm
Point-To-Point Service Agreement for Long-Term Firm Transmission
Service along with a corresponding capacity reservation associated with
each Point of Receipt. Points of Receipt and corresponding capacity
reservations shall be as mutually agreed upon by the Parties for Short-
Term Firm Transmission. Each Point of Delivery at which firm
transmission capacity is reserved by the Transmission Customer shall be
set forth in the Firm Point-To-Point Service Agreement for Long-Term
Firm Transmission Service along with a corresponding capacity
reservation associated with each Point of Delivery. Points of Delivery
and corresponding capacity reservations shall be as mutually agreed
upon by the Parties for Short-Term Firm Transmission. The greater of
either (1) the sum of the capacity reservations at the Point(s) of
Receipt, or (2) the sum of the capacity reservations at the Point(s) of
Delivery shall be the Transmission Customer's Reserved Capacity. The
Transmission Customer will be billed for its Reserved Capacity under
the terms of Schedule 7. The Transmission Customer may not exceed its
firm capacity reserved at each Point of Receipt and each Point of
Delivery except as otherwise specified in Section 22. The Transmission
Provider shall specify the rate treatment and all related terms and
conditions applicable in the event that a Transmission Customer,
(including Third-Party Sales by the Transmission Provider) exceeds its
firm reserved capacity at any Point of Receipt or Point of Delivery.
13.8 Scheduling of Firm Point-To-Point Transmission Service
Schedules for the Transmission Customer's Firm Point-To-Point
Transmission Service must be submitted to the Transmission Provider no
later than 10:00 a.m. (or a reasonable time that is generally accepted
in the region and is consistently adhered to by the Transmission
Provider) of the day prior to commencement of such service. Schedules
submitted after 10:00 a.m. will be accommodated, if practicable. Hour-
to-hour schedules of any capacity and energy that is to be delivered
must be stated in increments of 1,000 kW per hour (or a reasonable
increment that is generally accepted in the region and is consistently
adhered to by the Transmission Provider). Transmission Customers within
the Transmission Provider's service area with multiple requests for
Transmission Service at a Point of Receipt, each of which is under
1,000 kW per hour, may consolidate their service requests at a common
point of receipt into units of 1,000 kW per hour for scheduling and
billing purposes. Scheduling changes will be permitted up to twenty
(20) minutes (or a reasonable time that is generally accepted in the
region and is consistently adhered to by the Transmission Provider)
before the start of the next clock hour provided that the Delivering
Party and Receiving Party also agree to the schedule modification. The
Transmission Provider will furnish to the Delivering Party's system
operator, hour-to-hour schedules equal to those furnished by the
Receiving Party (unless reduced for losses) and shall deliver the
capacity and energy provided by such schedules. Should the Transmission
Customer, Delivering Party or Receiving Party revise or terminate any
schedule, such party shall immediately notify the Transmission
Provider, and the Transmission Provider shall have the right to adjust
accordingly the schedule for capacity and energy to be received and to
be delivered.
14 Nature of Non-Firm Point-To-Point Transmission Service
14.1 Term
Non-Firm Point-To-Point Transmission Service will be available for
periods ranging from one (1) hour to one (1) month. However, a
Purchaser of Non-Firm Point-To-Point Transmission Service will be
entitled to reserve a sequential term of service (such as a sequential
monthly term without having to wait for the initial term to expire
before requesting another monthly term) so that the total time period
for which the reservation applies is greater than one month, subject to
the requirements of Section 18.3.
14.2 Reservation Priority
Non-Firm Point-To-Point Transmission Service shall be available
from transmission capability in excess
[[Page 539]]
of that needed for reliable service to Native Load Customers, Network
Customers and other Transmission Customers taking Long-Term and Short-
Term Firm Point-To-Point Transmission Service. A higher priority will
be assigned to reservations with a longer duration of service. In the
event the Transmission System is constrained, competing requests of
equal duration will be prioritized based on the highest price offered
by the Eligible Customer for the Transmission Service. Eligible
Customers that have already reserved shorter term service have the
right of first refusal to match any longer term reservation before
being preempted. A longer term competing request for Non-Firm Point-To-
Point Transmission Service will be granted if the Eligible Customer
with the right of first refusal does not agree to match the competing
request: (a) Immediately for hourly Non-Firm Point-To-Point
Transmission Service after notification by the Transmission Provider;
and, (b) within 24 hours (or earlier if necessary to comply with the
scheduling deadlines provided in Section 14.6) for Non-Firm Point-To-
Point Transmission Service other than hourly transactions after
notification by the Transmission Provider. Transmission service for
Network Customers from resources other than designated Network
Resources will have a higher priority than any Non-Firm Point-To-Point
Transmission Service. Non-Firm Point-To-Point Transmission Service over
secondary Point(s) of Receipt and Point(s) of Delivery will have the
lowest reservation priority under the Tariff.
14.3 Use of Non-Firm Point-To-Point Transmission Service by the
Transmission Provider
The Transmission Provider will be subject to the rates, terms and
conditions of Part II of the Tariff when making Third-Party Sales under
agreements executed on or after March 9, 1998. The Transmission
Provider will maintain separate accounting, pursuant to Section 8, for
any use of Non-Firm Point-To-Point Transmission Service to make Third-
Party Sales.
14.4 Service Agreements
The Transmission Provider shall offer a standard form Non-Firm
Point-To-Point Transmission Service Agreement (Attachment B) to an
Eligible Customer when it first submits a Completed Application for
Non-Firm Point-To-Point Transmission Service pursuant to the Tariff.
14.5 Classification of Non-Firm Point-To-Point Transmission Service
Non-Firm Point-To-Point Transmission Service shall be offered under
terms and conditions contained in Part II of the Tariff. The
Transmission Provider undertakes no obligation under the Tariff to plan
its Transmission System in order to have sufficient capacity for Non-
Firm Point-To-Point Transmission Service. Parties requesting Non-Firm
Point-To-Point Transmission Service for the transmission of firm power
do so with the full realization that such service is subject to
availability and to Curtailment or Interruption under the terms of the
Tariff. The Transmission Provider shall specify the rate treatment and
all related terms and conditions applicable in the event that a
Transmission Customer (including Third-Party Sales by the Transmission
Provider) exceeds its non-firm capacity reservation. Non-Firm Point-To-
Point Transmission Service shall include transmission of energy on an
hourly basis and transmission of scheduled short-term capacity and
energy on a daily, weekly or monthly basis, but not to exceed one
month's reservation for any one Application under Schedule 8.
14.6 Scheduling of Non-Firm Point-To-Point Transmission Service
Schedules for Non-Firm Point-To-Point Transmission Service must be
submitted to the Transmission Provider no later than 2:00 p.m. (or a
reasonable time that is generally accepted in the region and is
consistently adhered to by the Transmission Provider) of the day prior
to commencement of such service. Schedules submitted after 2:00 p.m.
will be accommodated, if practicable. Hour-to-hour schedules of energy
that are to be delivered must be stated in increments of 1,000 kW per
hour (or a reasonable increment that is generally accepted in the
region and is consistently adhered to by the Transmission Provider).
Transmission Customers within the Transmission Provider's service area
with multiple requests for Transmission Service at a Point of Receipt,
each of which is under 1,000 kW per hour, may consolidate their
schedules at a common Point of Receipt into units of 1,000 kW per hour.
Scheduling changes will be permitted up to twenty (20) minutes (or a
reasonable time that is generally accepted in the region and is
consistently adhered to by the Transmission Provider) before the start
of the next clock hour provided that the Delivering Party and Receiving
Party also agree to the schedule modification. The Transmission
Provider will furnish to the Delivering Party's system operator, hour-
to-hour schedules equal to those furnished by the Receiving Party
(unless reduced for losses) and shall deliver the capacity and energy
provided by such schedules. Should the Transmission Customer,
Delivering Party or Receiving Party revise or terminate any schedule,
such party shall immediately notify the Transmission Provider, and the
Transmission Provider shall have the right to adjust accordingly the
schedule for capacity and energy to be received and to be delivered.
14.7 Curtailment or Interruption of Service
The Transmission Provider reserves the right to Curtail, in whole
or in part, Non-Firm Point-To-Point Transmission Service provided under
the Tariff for reliability reasons when, an emergency or other
unforeseen condition threatens to impair or degrade the reliability of
its Transmission System. The Transmission Provider reserves the right
to Interrupt, in whole or in part, Non-Firm Point-To-Point Transmission
Service provided under the Tariff for economic reasons in order to
accommodate (1) a request for Firm Transmission Service, (2) a request
for Non-Firm Point-To-Point Transmission Service of greater duration,
(3) a request for Non-Firm Point-To-Point Transmission Service of equal
duration with a higher price, or (4) transmission service for Network
Customers from non-designated resources. The Transmission Provider also
will discontinue or reduce service to the Transmission Customer to the
extent that deliveries for transmission are discontinued or reduced at
the Point(s) of Receipt. Where required, Curtailments or Interruptions
will be made on a non-discriminatory basis to the transaction(s) that
effectively relieve the constraint, however, Non-Firm Point-To-Point
Transmission Service shall be subordinate to Firm Transmission Service.
If multiple transactions require Curtailment or Interruption, to the
extent practicable and consistent with Good Utility Practice,
Curtailments or Interruptions will be made to transactions of the
shortest term (e.g., hourly non-firm transactions will be Curtailed or
Interrupted before daily non-firm transactions and daily non-firm
transactions will be Curtailed or Interrupted before weekly non-firm
transactions). Transmission service for Network Customers from
resources other than designated Network Resources will have a higher
priority than any Non-Firm Point-To-Point
[[Page 540]]
Transmission Service under the Tariff. Non-Firm Point-To-Point
Transmission Service over secondary Point(s) of Receipt and Point(s) of
Delivery will have a lower priority than any Non-Firm Point-To-Point
Transmission Service under the Tariff. The Transmission Provider will
provide advance notice of Curtailment or Interruption where such notice
can be provided consistent with Good Utility Practice.
15 Service Availability
15.1 General Conditions
The Transmission Provider will provide Firm and Non-Firm Point-To-
Point Transmission Service over, on or across its Transmission System
to any Transmission Customer that has met the requirements of Section
16.
15.2 Determination of Available Transmission Capability
A description of the Transmission Provider's specific methodology
for assessing available transmission capability posted on the
Transmission Provider's OASIS (Section 4) is contained in Attachment C
of the Tariff. In the event sufficient transmission capability may not
exist to accommodate a service request, the Transmission Provider will
respond by performing a System Impact Study.
15.3 Initiating Service in the Absence of an Executed Service
Agreement
If the Transmission Provider and the Transmission Customer
requesting Firm or Non-Firm Point-To-Point Transmission Service cannot
agree on all the terms and conditions of the Point-To-Point Service
Agreement, the Transmission Provider shall commence providing
Transmission Service subject to the Transmission Customer agreeing to
(i) compensate the Transmission Provider at the existing rate placed in
effect pursuant to applicable Federal law and regulations, and (ii)
comply with the terms and conditions of the Tariff including paying the
appropriate processing fees in accordance with the terms of Section
17.3. If the Transmission Customer cannot accept all of the terms and
conditions of the offered Service Agreement, the Transmission Customer
may request resolution of the unacceptable terms and conditions under
Section 12, Dispute Resolution Procedures, of the Tariff. Any changes
resulting from the Dispute Resolution Procedures will be effective upon
the date of initial service.
15.4 Obligation to Provide Transmission Service that Requires
Expansion or Modification of the Transmission System
If the Transmission Provider determines that it cannot accommodate
a Completed Application for Firm Point-To-Point Transmission Service
because of insufficient capability on its Transmission System, the
Transmission Provider will use due diligence to expand or modify its
Transmission System to provide the requested Firm Transmission Service,
provided the Transmission Customer agrees to compensate the
Transmission Provider in advance for such costs pursuant to the terms
of Section 27. The Transmission Provider will conform to Good Utility
Practice in determining the need for new facilities and in the design
and construction of such facilities. The obligation applies only to
those facilities that the Transmission Provider has the right to expand
or modify.
15.5 Deferral of Service
The Transmission Provider may defer providing service until it
completes construction of new transmission facilities or upgrades
needed to provide Firm Point-To-Point Transmission Service whenever the
Transmission Provider determines that providing the requested service
would, without such new facilities or upgrades, impair or degrade
reliability to any existing firm services.
15.6 Other Transmission Service Schedules
Eligible Customers receiving transmission service under other
agreements on file with the Commission may continue to receive
transmission service under those agreements until such time as those
agreements may be modified by the Commission.
15.7 Real Power Losses
Real Power Losses are associated with all transmission service. The
Transmission Provider is not obligated to provide Real Power Losses.
The Transmission Customer is responsible for replacing losses
associated with all transmission service as calculated by the
Transmission Provider. The applicable Real Power Loss factors are
specified in the Service Agreements.
16 Transmission Customer Responsibilities
16.1 Conditions Required of Transmission Customers
Point-To-Point Transmission Service shall be provided by the
Transmission Provider only if the following conditions are satisfied by
the Transmission Customer:
a. The Transmission Customer has pending a Completed Application
for service;
b. The Transmission Customer meets the creditworthiness criteria
set forth in Section 11;
c. The Transmission Customer will have arrangements in place for
any other transmission service necessary to effect the delivery from
the generating source to the Transmission Provider prior to the time
service under Part II of the Tariff commences;
d. The Transmission Customer agrees to pay for any facilities
constructed and chargeable to such Transmission Customer under Part II
of the Tariff, whether or not the Transmission Customer takes service
for the full term of its reservation; and
e. The Transmission Customer has executed a Point-To-Point Service
Agreement or has agreed to receive service pursuant to Section 15.3.
16.2 Transmission Customer Responsibility for Third-Party Arrangements
Any scheduling arrangements that may be required by other electric
systems shall be the responsibility of the Transmission Customer
requesting service. The Transmission Customer shall provide, unless
waived by the Transmission Provider, notification to the Transmission
Provider identifying such systems and authorizing them to schedule the
capacity and energy to be transmitted by the Transmission Provider
pursuant to Part II of the Tariff on behalf of the Receiving Party at
the Point of Delivery or the Delivering Party at the Point of Receipt.
However, the Transmission Provider will undertake reasonable efforts to
assist the Transmission Customer in making such arrangements, including
without limitation, providing any information or data required by such
other electric system pursuant to Good Utility Practice.
17 Procedures for Arranging Firm Point-To-Point Transmission Service
17.1 Application
A request for Firm Point-To-Point Transmission Service for periods
of one year or longer must contain a written Application to the
appropriate Regional Office, as identified in Attachment K to the
Tariff, at least sixty (60) days in advance of the calendar month in
which service is to commence. The Transmission Provider will consider
requests for such firm service on shorter notice when feasible.
Requests for firm
[[Page 541]]
service for periods of less than one year shall be subject to expedited
procedures that shall be negotiated between the Parties within the time
constraints provided in Section 17.5. All Firm Point-To-Point
Transmission Service requests should be submitted by entering the
information listed below on the Transmission Provider's OASIS. Prior to
implementation of the Transmission Provider's OASIS, a Completed
Application may be submitted by (i) transmitting the required
information to the Transmission Provider by telefax, or (ii) providing
the information by telephone over the Transmission Provider's time
recorded telephone line. Each of these methods will provide a time-
stamped record for establishing the priority of the Application.
17.2 Completed Application
A Completed Application shall provide all of the information
included in 18 CFR 2.20 including but not limited to the following:
(i) The identity, address, telephone number and facsimile number of
the entity requesting service;
(ii) A statement that the entity requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
(iii) The location of the Point(s) of Receipt and Point(s) of
Delivery and the identities of the Delivering Parties and the Receiving
Parties;
(iv) The location of the generating facility(ies) supplying the
capacity and energy and the location of the load ultimately served by
the capacity and energy transmitted. The Transmission Provider will
treat this information as confidential except to the extent that
disclosure of this information is required by the Tariff, by Federal
law, by regulatory or judicial order, for reliability purposes pursuant
to Good Utility Practice or pursuant to RTG transmission information
sharing agreements. The Transmission Provider shall treat this
information consistent with the standards of conduct contained in Part
37 of the Commission's regulations;
(v) A description of the supply characteristics of the capacity and
energy to be delivered;
(vi) An estimate of the capacity and energy expected to be
delivered to the Receiving Party;
(vii) The Service Commencement Date and the term of the requested
Transmission Service;
(viii) The transmission capacity requested for each Point of
Receipt and each Point of Delivery on the Transmission Provider's
Transmission System; customers may combine their requests for service
in order to satisfy the minimum transmission capacity requirement;
The Transmission Provider shall treat this information consistent
with the standards of conduct contained in Part 37 of the Commission's
regulations.
17.3 Processing Fee
A Completed Application for Firm Point-To-Point Transmission
Service also shall include a non-refundable processing fee. Such fee
shall be applicable to all Transmission Customers for firm Transmission
Service requests of one year or longer. Individual Transmission
Provider processing fees will be calculated using the number of
estimated hours it will take to process an application and will be set
forth in Attachment K. This fee does not apply to costs to complete
System Impact Studies or Facility Studies or to add new facilities.
17.4 Notice of Deficient Application
If an Application fails to meet the requirements of the Tariff, the
Transmission Provider shall notify the entity requesting service within
fifteen (15) days of receipt of the reasons for such failure. The
Transmission Provider will attempt to remedy minor deficiencies in the
Application through informal communications with the Eligible Customer.
If such efforts are unsuccessful, the Transmission Provider shall
return the Application. Upon receipt of a new or revised Application
that fully complies with the requirements of Part II of the Tariff, the
Eligible Customer shall be assigned a new priority consistent with the
date of the new or revised Application.
17.5 Response to a Completed Application
Following receipt of a Completed Application for Firm Point-To-
Point Transmission Service, the Transmission Provider shall make a
determination of available transmission capability as required in
Section 15.2. The Transmission Provider shall notify the Eligible
Customer as soon as practicable, but not later than thirty (30) days
after the date of receipt of a Completed Application either (i) if it
will be able to provide service without performing a System Impact
Study or (ii) if such a study is needed to evaluate the impact of the
Application pursuant to Section 19.1. Responses by the Transmission
Provider must be made as soon as practicable to all completed
applications (including applications by its own merchant function) and
the timing of such responses must be made on a non-discriminatory
basis.
17.6 Execution of a Service Agreement
Whenever the Transmission Provider determines that a System Impact
Study is not required and that the service can be provided, it shall
notify the Eligible Customer as soon as practicable but no later than
thirty (30) days after receipt of the Completed Application. Where a
System Impact Study is required, the provisions of Section 19 will
govern the execution of a Service Agreement. Failure of an Eligible
Customer to execute and return the Service Agreement or request service
without an executed Service Agreement pursuant to Section 15.3, within
fifteen (15) days after it is tendered by the Transmission Provider
will be deemed a withdrawal and termination of the Application. Nothing
herein limits the right of an Eligible Customer to file another
Application after such withdrawal and termination.
17.7 Extensions for Commencement of Service
The Transmission Customer can obtain up to five (5) one-year
extensions for the commencement of service. The Transmission Customer
may postpone service by paying a non-refundable annual reservation fee
equal to one-month's charge for Firm Transmission Service for each year
or fraction thereof. If during any extension for the commencement of
service an Eligible Customer submits a Completed Application for Firm
Transmission Service, and such request can be satisfied only by
releasing all or part of the Transmission Customer's Reserved Capacity,
the original Reserved Capacity will be released unless the following
condition is satisfied. Within thirty (30) days, the original
Transmission Customer agrees to pay the Firm Point-To-Point
transmission rate for its Reserved Capacity concurrent with the new
Service Commencement Date. In the event the Transmission Customer
elects to release the Reserved Capacity, the reservation fees or
portions thereof previously paid will be forfeited.
18 Procedures for Arranging Non-Firm Point-To-Point Transmission
Service
18.1 Application
Eligible Customers seeking Non-Firm Point-To-Point Transmission
Service must submit a Completed Application to the Transmission
Provider. Applications should be submitted by entering the information
listed below on the Transmission Provider's OASIS. Prior to
implementation of the
[[Page 542]]
Transmission Provider's OASIS, a Completed Application may be submitted
by (i) transmitting the required information to the Transmission
Provider by telefax, or (ii) providing the information by telephone
over the Transmission Provider's time recorded telephone line. Each of
these methods will provide a time-stamped record for establishing the
service priority of the Application.
18.2 Completed Application
A Completed Application shall provide all of the information
included in 18 CFR Sec. 2.20 including but not limited to the
following:
(i) The identity, address, telephone number and facsimile number of
the entity requesting service;
(ii) A statement that the entity requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
(iii) The Point(s) of Receipt and the Point(s) of Delivery;
(iv) The maximum amount of capacity requested at each Point of
Receipt and Point of Delivery; and
(v) The proposed dates and hours for initiating and terminating
transmission service hereunder.
In addition to the information specified above, when required to
properly evaluate system conditions, the Transmission Provider also may
ask the Transmission Customer to provide the following:
(vi) The electrical location of the initial source of the power to
be transmitted pursuant to the Transmission Customer's request for
service;
(vii) The electrical location of the ultimate load.
The Transmission Provider will treat this information in (vi) and
(vii) as confidential at the request of the Transmission Customer
except to the extent that disclosure of this information is required by
this Tariff, by Federal Law, by regulatory or judicial order, for
reliability purposes pursuant to Good Utility Practice, or pursuant to
RTG transmission information sharing agreements. The Transmission
Provider shall treat this information consistent with the standards of
conduct contained in Part 37 of the Commission's regulations.
18.3 Reservation of Non-Firm Point-To-Point Transmission Service
Requests for monthly service shall be submitted no earlier than
sixty (60) days before service is to commence; requests for weekly
service shall be submitted no earlier than fourteen (14) days before
service is to commence, requests for daily service shall be submitted
no earlier than two (2) days before service is to commence, and
requests for hourly service shall be submitted no earlier than noon the
day before service is to commence. Requests for service received later
than 2:00 p.m. prior to the day service is scheduled to commence will
be accommodated if practicable [or such reasonable times that are
generally accepted in the region and are consistently adhered to by the
Transmission Provider].
18.4 Determination of Available Transmission Capability
Following receipt of a tendered schedule the Transmission Provider
will make a determination on a non-discriminatory basis of available
transmission capability pursuant to Section 15.2. Such determination
shall be made as soon as reasonably practicable after receipt, but not
later than the following time periods for the following terms of
service (i) thirty (30) minutes for hourly service, (ii) thirty (30)
minutes for daily service, (iii) four (4) hours for weekly service, and
(iv) two (2) days for monthly service. [Or such reasonable times that
are generally accepted in the region and are consistently adhered to by
the Transmission Provider].
19 Additional Study Procedures For Firm Point-To-Point Transmission
Service Requests
19.1 Notice of Need for System Impact Study
After receiving a request for service, the Transmission Provider
shall determine on a non-discriminatory basis whether a System Impact
Study is needed. A description of the Transmission Provider's
methodology for completing a System Impact Study is provided in
Attachment D. If the Transmission Provider determines that a System
Impact Study is necessary to accommodate the requested service, it
shall so inform the Eligible Customer, as soon as practicable. In such
cases, the Transmission Provider shall within thirty (30) days of
receipt of a Completed Application, tender a System Impact Study
Agreement pursuant to which the Eligible Customer shall agree to
advance funds to the Transmission Provider for performing the required
System Impact Study. For a service request to remain a Completed
Application, the Eligible Customer shall execute the System Impact
Study Agreement and return it to the Transmission Provider within
fifteen (15) days. If the Eligible Customer elects not to execute the
System Impact Study Agreement, its application shall be deemed
withdrawn.
19.2 System Impact Study Agreement and Compensation:
(i) The System Impact Study Agreement will clearly specify the
Transmission Provider's estimate of the actual cost, and time for
completion of the System Impact Study. The charge will not exceed the
actual cost of the study. In performing the System Impact Study, the
Transmission Provider shall rely, to the extent reasonably practicable,
on existing transmission planning studies. The Eligible Customer will
not be assessed a charge for such existing studies; however, the
Eligible Customer will be responsible for charges associated with any
modifications to existing planning studies that are reasonably
necessary to evaluate the impact of the Eligible Customer's request for
service on the Transmission System.
(ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation, a single
System Impact Study is sufficient for the Transmission Provider to
accommodate the requests for service, the costs of that study shall be
pro-rated among the Eligible Customers.
(iii) For System Impact Studies that the Transmission Provider
conducts on its own behalf, the Transmission Provider shall record the
cost of the System Impact Studies pursuant to Section 8.
19.3 System Impact Study Procedures
Upon receipt of an executed System Impact Study Agreement, the
Transmission Provider will use due diligence to complete the required
System Impact Study within a sixty (60) day period. The System Impact
Study shall identify any system constraints and redispatch options,
additional Direct Assignment Facilities or Network Upgrades required to
provide the requested service. In the event that the Transmission
Provider is unable to complete the required System Impact Study within
such time period, it shall so notify the Eligible Customer and provide
an estimated completion date along with an explanation of the reasons
why additional time is required to complete the required studies. A
copy of the completed System Impact Study and related work papers shall
be made available to the Eligible Customer. The Transmission Provider
will use the same due diligence in completing the System Impact Study
for an Eligible Customer as it uses when completing studies for itself.
The Transmission Provider shall notify the Eligible
[[Page 543]]
Customer immediately upon completion of the System Impact Study if the
Transmission System will be adequate to accommodate all or part of a
request for service or that no costs are likely to be incurred for new
transmission facilities or upgrades. In order for a request to remain a
Completed Application, within fifteen (15) days of completion of the
System Impact Study the Eligible Customer must execute a Service
Agreement or request service without an executed Service Agreement
pursuant to Section 15.3, or the Application shall be deemed terminated
and withdrawn.
19.4 Facilities Study Procedures
If a System Impact Study indicates that additions or upgrades to
the Transmission System are needed to supply the Eligible Customer's
service request, the Transmission Provider, within thirty (30) days of
the completion of the System Impact Study, shall tender to the Eligible
Customer a Facilities Study Agreement pursuant to which the Eligible
Customer shall agree to advance funds to the Transmission Provider for
performing the required Facilities Study. For a service request to
remain a Completed Application, the Eligible Customer shall execute the
Facilities Study Agreement and return it to the Transmission Provider
within fifteen (15) days. If the Eligible Customer elects not to
execute the Facilities Study Agreement, its application shall be deemed
withdrawn. Upon receipt of an executed Facilities Study Agreement, the
Transmission Provider will use due diligence to complete the required
Facilities Study within a sixty (60) day period. If the Transmission
Provider is unable to complete the Facilities Study in the allotted
time period, the Transmission Provider shall notify the Transmission
Customer and provide an estimate of the time needed to reach a final
determination along with an explanation of the reasons that additional
time is required to complete the study. When completed, the Facilities
Study will include a good faith estimate of (i) the cost of Direct
Assignment Facilities to be charged to the Transmission Customer, (ii)
the Transmission Customer's appropriate share of the cost of any
required Network Upgrades as determined pursuant to the provisions of
Part II of the Tariff, and (iii) the time required to complete such
construction and initiate the requested service. The Transmission
Customer shall pay the Transmission Provider in advance Transmission
Customer's share of the costs of new facilities or upgrades. The
Transmission Customer shall have thirty (30) days to execute a
construction agreement and a Service Agreement and provide the advance
payment or request service without an executed Service Agreement
pursuant to Section 15.3 and pay the Transmission Customer's share of
the costs or the request will no longer be a Completed Application and
shall be deemed terminated and withdrawn. Any advance payment made by
the Transmission Customer that is in excess of the costs incurred by
the Transmission Provider shall be refunded.
19.5 Facilities Study Modifications
Any change in design arising from inability to site or construct
facilities as proposed will require development of a revised good faith
estimate. New good faith estimates also will be required in the event
of new statutory or regulatory requirements that are effective before
the completion of construction or other circumstances beyond the
control of the Transmission Provider that significantly affect the
final cost of new facilities or upgrades to be charged to the
Transmission Customer pursuant to the provisions of Part II of the
Tariff.
19.6 Due Diligence in Completing New Facilities
The Transmission Provider shall use due diligence to add necessary
facilities or upgrade its Transmission System within a reasonable time.
The Transmission Provider will not upgrade its existing or planned
Transmission System in order to provide the requested Firm Point-To-
Point Transmission Service if doing so would impair system reliability
or otherwise impair or degrade existing firm service.
19.7 Partial Interim Service
If the Transmission Provider determines that it will not have
adequate transmission capability to satisfy the full amount of a
Completed Application for Firm Point-To-Point Transmission Service, the
Transmission Provider nonetheless shall be obligated to offer and
provide the portion of the requested Firm Point-To-Point Transmission
Service that can be accommodated without addition of any facilities and
through redispatch. However, the Transmission Provider shall not be
obligated to provide the incremental amount of requested Firm Point-To-
Point Transmission Service that requires the addition of facilities or
upgrades to the Transmission System until such facilities or upgrades
have been placed in service.
19.8 Expedited Procedures for New Facilities
In lieu of the procedures set forth above, the Eligible Customer
shall have the option to expedite the process by requesting the
Transmission Provider to tender at one time, together with the results
of required studies, an ``Expedited Service Agreement'' pursuant to
which the Eligible Customer would agree to compensate the Transmission
Provider in advance for all costs incurred pursuant to the terms of the
Tariff. In order to exercise this option, the Eligible Customer shall
request in writing an expedited Service Agreement covering all of the
above-specified items within thirty (30) days of receiving the results
of the System Impact Study identifying needed facility additions or
upgrades or costs incurred in providing the requested service. While
the Transmission Provider agrees to provide the Eligible Customer with
its best estimate of the new facility costs and other charges that may
be incurred, such estimate shall not be binding and the Eligible
Customer must agree in writing to compensate the Transmission Provider
in advance for all costs incurred pursuant to the provisions of the
Tariff. The Eligible Customer shall execute and return such an
Expedited Service Agreement within fifteen (15) days of its receipt or
the Eligible Customer's request for service will cease to be a
Completed Application and will be deemed terminated and withdrawn.
20 Procedures if The Transmission Provider is Unable to Complete New
Transmission Facilities for Firm Point-To-Point Transmission Service
20.1 Delays in Construction of New Facilities
If any event occurs that will materially affect the time for
completion of new facilities, or the ability to complete them, the
Transmission Provider shall promptly notify the Transmission Customer.
In such circumstances, the Transmission Provider shall within thirty
(30) days of notifying the Transmission Customer of such delays,
convene a technical meeting with the Transmission Customer to evaluate
the alternatives available to the Transmission Customer. The
Transmission Provider also shall make available to the Transmission
Customer studies and work papers related to the delay, including all
information that is in the possession of the Transmission Provider that
is reasonably needed by the Transmission Customer to evaluate any
alternatives.
[[Page 544]]
20.2 Alternatives to the Original Facility Additions
When the review process of Section 20.1 determines that one or more
alternatives exist to the originally planned construction project, the
Transmission Provider shall present such alternatives for consideration
by the Transmission Customer. If, upon review of any alternatives, the
Transmission Customer desires to maintain its Completed Application
subject to construction of the alternative facilities, it may request
the Transmission Provider to submit a revised Service Agreement for
Firm Point-To-Point Transmission Service. If the alternative approach
solely involves Non-Firm Point-To-Point Transmission Service, the
Transmission Provider shall promptly tender a Service Agreement for
Non-Firm Point-To-Point Transmission Service providing for the service.
In the event the Transmission Provider concludes that no reasonable
alternative exists and the Transmission Customer disagrees, the
Transmission Customer may seek relief under the dispute resolution
procedures pursuant to Section 12 or it may refer the dispute to the
Commission for resolution.
20.3 Refund Obligation for Unfinished Facility Additions
If the Transmission Provider and the Transmission Customer mutually
agree that no other reasonable alternatives exist and the requested
service cannot be provided out of existing capability under the
conditions of Part II of the Tariff, the obligation to provide the
requested Firm Point-To-Point Transmission Service shall terminate and
any advance payment made by the Transmission Customer that is in excess
of the costs incurred by the Transmission Provider through the time
construction was suspended shall be returned. However, the Transmission
Customer shall be responsible for all prudently incurred costs by the
Transmission Provider through the time construction was suspended.
21 Provisions Relating to Transmission Construction and Services on
the Systems of Other Utilities
21.1 Responsibility for Third-Party System Additions
The Transmission Provider shall not be responsible for making
arrangements for any necessary engineering, permitting, and
construction of transmission or distribution facilities on the
system(s) of any other entity or for obtaining any regulatory approval
for such facilities. The Transmission Provider will undertake
reasonable efforts to assist the Transmission Customer in obtaining
such arrangements, including without limitation, providing any
information or data required by such other electric system pursuant to
Good Utility Practice.
21.2 Coordination of Third-Party System Additions
In circumstances where the need for transmission facilities or
upgrades is identified pursuant to the provisions of Part II of the
Tariff, and if such upgrades further require the addition of
transmission facilities on other systems, the Transmission Provider
shall have the right to coordinate construction on its own system with
the construction required by others. The Transmission Provider, after
consultation with the Transmission Customer and representatives of such
other systems, may defer construction of its new transmission
facilities, if the new transmission facilities on another system cannot
be completed in a timely manner. The Transmission Provider shall notify
the Transmission Customer in writing of the basis for any decision to
defer construction and the specific problems which must be resolved
before it will initiate or resume construction of new facilities.
Within sixty (60) days of receiving written notification by the
Transmission Provider of its intent to defer construction pursuant to
this section, the Transmission Customer may challenge the decision in
accordance with the dispute resolution procedures pursuant to Section
12 or it may refer the dispute to the Commission for resolution.
22 Changes in Service Specifications
22.1 Modifications On a Non-Firm Basis
The Transmission Customer taking Firm Point-To-Point Transmission
Service may request the Transmission Provider to provide transmission
service on a non-firm basis over Receipt and Delivery Points other than
those specified in the Service Agreement (``Secondary Receipt and
Delivery Points''), in amounts not to exceed its firm capacity
reservation, without incurring an additional Non-Firm Point-To-Point
Transmission Service charge or executing a new Service Agreement,
subject to the following conditions.
(a) Service provided over Secondary Receipt and Delivery Points
will be non-firm only, on an as-available basis and will not displace
any firm or non-firm service reserved or scheduled by third-parties
under the Tariff or by the Transmission Provider on behalf of its
Native Load Customers.
(b) The sum of all Firm and non-firm Point-To-Point Transmission
Service provided to the Transmission Customer at any time pursuant to
this section shall not exceed the Reserved Capacity in the relevant
Service Agreement under which such services are provided.
(c) The Transmission Customer shall retain its right to schedule
Firm Point-To-Point Transmission Service at the Receipt and Delivery
Points specified in the relevant Service Agreement in the amount of its
original capacity reservation.
(d) Service over Secondary Receipt and Delivery Points on a non-
firm basis shall not require the filing of an Application for Non-Firm
Point-To-Point Transmission Service under the Tariff. However, all
other requirements of Part II of the Tariff (except as to transmission
rates) shall apply to transmission service on a non-firm basis over
Secondary Receipt and Delivery Points.
22.2 Modifications on a Firm Basis
Any request by a Transmission Customer to modify Receipt and
Delivery Points on a firm basis shall be treated as a new request for
service in accordance with Section 17 hereof except that such
Transmission Customer shall not be obligated to pay any additional
application processing fee if the capacity reservation does not exceed
the amount reserved in the existing Service Agreement. While such new
request is pending, the Transmission Customer shall retain its priority
for service at the existing firm Receipt and Delivery Points specified
in its Service Agreement.
23 Sale or Assignment of Transmission Service
23.1 Procedures for Assignment or Transfer of Service
Subject to Commission approval of any necessary filings, a
Transmission Customer may sell, assign, or transfer all or a portion of
its rights under its Service Agreement, but only to another Eligible
Customer (the Assignee). The Transmission Customer that sells, assigns
or transfers its rights under its Service Agreement is hereafter
referred to as the Reseller. Compensation to the Reseller shall not
exceed the higher of (i) the original rate paid by the Reseller, (ii)
the Transmission Provider's maximum rate on file at the time of the
assignment, or (iii) the Reseller's opportunity cost capped at the
Transmission Provider's cost of expansion. If the Assignee does not
[[Page 545]]
request any change in the Point(s) of Receipt or the Point(s) of
Delivery, or a change in any other term or condition set forth in the
original Service Agreement, the Assignee will receive the same services
as did the Reseller and the priority of service for the Assignee will
be the same as that of the Reseller. A Reseller should notify the
Transmission Provider as soon as possible after any assignment or
transfer of service occurs but in any event, notification must be
provided prior to any provision of service to the Assignee. The
Assignee will be subject to all terms and conditions of the Tariff. If
the Assignee requests a change in service, the reservation priority of
service will be determined by the Transmission Provider pursuant to
Section 13.2.
23.2 Limitations on Assignment or Transfer of Service
If the Assignee requests a change in the Point(s) of Receipt or
Point(s) of Delivery, or a change in any other specifications set forth
in the original Service Agreement, the Transmission Provider will
consent to such change subject to the provisions of the Tariff,
provided that the change will not impair the operation and reliability
of the Transmission Provider's generation, transmission, or
distribution systems. The Assignee shall compensate the Transmission
Provider in advance for performing any System Impact Study needed to
evaluate the capability of the Transmission System to accommodate the
proposed change and any additional costs resulting from such change.
The Reseller shall remain liable for the performance of all obligations
under the Service Agreement, except as specifically agreed to by the
Parties through an amendment to the Service Agreement.
23.3 Information on Assignment or Transfer of Service
In accordance with Section 4, Resellers may use the Transmission
Provider's OASIS to post transmission capacity available for resale.
24 Metering and Power Factor Correction at Receipt and Delivery
Point(s)
24.1 Transmission Customer Obligations
Unless otherwise agreed, the Transmission Customer shall be
responsible for installing and maintaining compatible metering and
communications equipment to accurately account for the capacity and
energy being transmitted under Part II of the Tariff and to communicate
the information to the Transmission Provider. Such equipment shall
remain the property of the Transmission Customer.
24.2 Transmission Provider Access to Metering Data
The Transmission Provider shall have access to metering data, which
may reasonably be required to facilitate measurements and billing under
the Service Agreement.
24.3 Power Factor
Unless otherwise agreed, the Transmission Customer is required to
maintain a power factor within the same range as the Transmission
Provider pursuant to Good Utility Practices. The power factor
requirements are specified in the Service Agreement where applicable.
25 Compensation for Transmission Service
Rates for Firm and Non-Firm Point-To-Point Transmission Service are
provided in the Schedules appended to the Tariff: Firm Point-To-Point
Transmission Service (Schedule 7); and Non-Firm Point-To-Point
Transmission Service (Schedule 8). The Transmission Provider shall use
Part II of the Tariff to make its Third-Party Sales. The Transmission
Provider shall account for such use at the applicable Tariff rates,
pursuant to Section 8.
26 Stranded Cost Recovery
The Transmission Provider may seek to recover stranded costs from
the Transmission Customer in a manner consistent with applicable
Federal law and regulations.
27 Compensation for New Facilities and Redispatch Costs
Whenever a System Impact Study performed by the Transmission
Provider in connection with the provision of Firm Point-To-Point
Transmission Service identifies the need for new facilities, the
Transmission Customer shall be responsible for such costs to the extent
consistent with Commission policy. Whenever a System Impact Study
performed by the Transmission Provider identifies capacity constraints
that may be relieved more economically by redispatching the
Transmission Provider's resources than by building new facilities or
upgrading existing facilities to eliminate such constraints, the
Transmission Customer shall be responsible for the redispatch costs to
the extent consistent with Commission policy.
Part III. Network Integration Transmission Service
Preamble
The Transmission Provider will provide Network Integration
Transmission Service pursuant to the applicable terms and conditions
contained in the Tariff and Service Agreement. Network Integration
Transmission Service allows the Network Customer to integrate,
economically dispatch and regulate its current and planned Network
Resources to serve its Network Load in a manner comparable to that in
which the Transmission Provider utilizes its Transmission System to
serve its Native Load Customers. Network Integration Transmission
Service also may be used by the Network Customer to deliver economy
energy purchases to its Network Load from non-designated resources on
an as-available basis without additional charge. Transmission service
for sales to non-designated loads will be provided pursuant to the
applicable terms and conditions of Part II of the Tariff.
28 Nature of Network Integration Transmission Service
28.1 Scope of Service
Network Integration Transmission Service is a transmission service
that allows Network Customers to efficiently and economically utilize
their Network Resources (as well as other non-designated generation
resources) to serve their Network Load located in the Transmission
Provider's Control Area and any additional load that may be designated
pursuant to Section 31.3 of the Tariff. The Network Customer taking
Network Integration Transmission Service must obtain or provide
Ancillary Services pursuant to Section 3.
28.2 Transmission Provider Responsibilities
The Transmission Provider will plan, construct, operate and
maintain its Transmission System in accordance with Good Utility
Practice in order to provide the Network Customer with Network
Integration Transmission Service over the Transmission Provider's
Transmission System. The Transmission Provider, on behalf of its Native
Load Customers, shall be required to designate resources and loads in
the same manner as any Network Customer under Part III of the Tariff.
This information must be consistent with the information used by the
Transmission Provider to calculate available transmission capability.
The
[[Page 546]]
Transmission Provider shall include the Network Customer's Network Load
in its Transmission System planning and shall, consistent with Good
Utility Practice, endeavor to construct and place into service
sufficient transmission capacity to deliver the Network Customer's
Network Resources to serve its Network Load on a basis comparable to
the Transmission Provider's delivery of its own generating and
purchased resources to its Native Load Customers. This obligation to
construct and place into service sufficient transmission capacity to
deliver the Network Customer's Network Resources to serve its Network
Load is contingent upon the availability to Western of sufficient
appropriations, when needed, and the Transmission Customer's advanced
funds.
28.3 Network Integration Transmission Service
The Transmission Provider will provide firm transmission service
over its Transmission System to the Network Customer for the delivery
of capacity and energy from its designated Network Resources to service
its Network Loads on a basis that is comparable to the Transmission
Provider's use of the Transmission System to reliably serve its Native
Load Customers.
28.4 Secondary Service
The Network Customer may use the Transmission Provider's
Transmission System to deliver energy to its Network Loads from
resources that have not been designated as Network Resources. Such
energy shall be transmitted, on an as-available basis, at no additional
charge. Deliveries from resources other than Network Resources will
have a higher priority than any Non-Firm Point-To-Point Transmission
Service under Part II of the Tariff.
28.5 Real Power Losses
Real Power Losses are associated with all transmission service. The
Transmission Provider is not obligated to provide Real Power Losses.
The Network Customer is responsible for replacing losses associated
with all transmission service as calculated by the Transmission
Provider. The applicable Real Power Loss factors are specified in the
Service Agreements.
28.6 Restrictions on Use of Service
The Network Customer shall not use Network Integration Transmission
Service for (i) sales of capacity and energy to non-designated loads,
or (ii) direct or indirect provision of transmission service by the
Network Customer to third parties. All Network Customers taking Network
Integration Transmission Service shall use Point-To-Point Transmission
Service under Part II of the Tariff for any Third-Party Sale which
requires use of the Transmission Provider's Transmission System.
29 Initiating Service
29.1 Condition Precedent for Receiving Service
Subject to the terms and conditions of Part III of the Tariff, the
Transmission Provider will provide Network Integration Transmission
Service to any Eligible Customer provided that (i) the Eligible
Customer completes an Application for service as provided under Part
III of the Tariff, (ii) the Eligible Customer and the Transmission
Provider complete the technical arrangements set forth in Sections 29.3
and 29.4, (iii) the Eligible Customer executes a Service Agreement
pursuant to Attachment F for service under Part III of the Tariff or
requests in writing that the Transmission Provider provide service
without an executed Service Agreement, and (iv) the Eligible Customer
executes a Network Operating Agreement with the Transmission Provider
pursuant to Attachment G, or requests in writing that the Transmission
Provider provide service without an executed Network Operating
Agreement. If the Transmission Provider and the Network Customer cannot
agree on all the terms and conditions of the Network Service Agreement,
the Transmission Provider shall commence providing Network Integration
Transmission Service subject to the Network Customer agreeing to (i)
compensate the Transmission Provider at the existing rate placed in
effect pursuant to applicable Federal law and regulations, and (ii)
comply with the terms and conditions of the Tariff including paying the
appropriate processing fees in accordance with the terms of Section
29.2. If the Network Customer cannot accept all of the terms and
conditions of the offered Service Agreement, the Network Customer may
request resolution of the unacceptable terms and conditions under
Section 12, Dispute Resolution Procedures, of the Tariff. Any changes
resulting from the Dispute Resolution Procedures will be effective upon
the date of initial service.
29.2 Application Procedures
An Eligible Customer requesting service under Part III of the
Tariff must submit an Application to the Transmission Provider as far
as possible in advance of the month in which service is to commence.
Unless subject to the procedures in Section 2, Completed Applications
for Network Integration Transmission Service will be assigned a
priority according to the date and time the Application is received,
with the earliest Application receiving the highest priority.
Applications should be submitted by entering the information listed
below on the Transmission Provider's OASIS. Prior to implementation of
the Transmission Provider's OASIS, a Completed Application may be
submitted by (i) transmitting the required information to the
Transmission Provider by telefax, or (ii) providing the information by
telephone over the Transmission Provider's time recorded telephone
line. Each of these methods will provide a time-stamped record for
establishing the service priority of the Application. A Completed
Application for Network Integration Transmission Service also shall
include a non-refundable processing fee. Such fee shall be applicable
to all Transmission Customers for firm Transmission Service requests of
one year or longer. Individual Transmission Provider processing fees
will be calculated using the number of estimated hours it will take to
process an application and will be set forth in Attachment K. This fee
does not apply to costs to complete System Impact Studies or Facility
Studies or to add new facilities. A Completed Application shall provide
all of the information included in 18 CFR 2.20 including but not
limited to the following:
(i) The identity, address, telephone number and facsimile number of
the party requesting service;
(ii) A statement that the party requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
(iii) A description of the Network Load at each delivery point.
This description should separately identify and provide the Eligible
Customer's best estimate of the total loads to be served at each
transmission voltage level, and the loads to be served from each
Transmission Provider substation at the same transmission voltage
level. The description should include a ten (10) year forecast of
summer and winter load and resource requirements beginning with the
first year after the service is scheduled to commence;
(iv) The amount and location of any interruptible loads included in
the Network Load. This shall include the summer and winter capacity
requirements for each interruptible load (had such load not been
interruptible), that portion of the load subject to interruption, the
conditions under
[[Page 547]]
which an interruption can be implemented and any limitations on the
amount and frequency of interruptions. An Eligible Customer should
identify the amount of interruptible customer load (if any), included
in the 10 year load forecast provided in response to (iii) above;
(v) A description of Network Resources (current and 10-year
projection), which shall include, for each Network Resource:
--Unit size and amount of capacity from that unit to be designated as
Network Resource
--VAR capability (both leading and lagging), of all generators
--Operating restrictions
--Any periods of restricted operations throughout the year
--Maintenance schedules
--Minimum loading level of unit
--Normal operating level of unit
--Any must-run unit designations required for system reliability or
contract reasons
--Approximate variable generating cost ($/MWH) for redispatch
computations
--Arrangements governing sale and delivery of power to third parties
from generating facilities located in the Transmission Provider Control
Area, where only a portion of unit output is designated as a Network
Resource
--Description of purchased power designated as a Network Resource
including source of supply, Control Area location, transmission
arrangements and delivery point(s) to the Transmission Provider's
Transmission System;
(vi) Description of Eligible Customer's transmission system:
--Load flow and stability data, such as real and reactive parts of the
load, lines, transformers, reactive devices and load type, including
normal and emergency ratings of all transmission equipment in a load
flow format compatible with that used by the Transmission Provider
--Operating restrictions needed for reliability
--Operating guides employed by system operators
--Contractual restrictions or committed uses of the Eligible Customer's
transmission system, other than the Eligible Customer's Network Loads
and Resources
--Location of Network Resources described in subsection (v) above
--10 year projection of system expansions or upgrades
--Transmission System maps that include any proposed expansions or
upgrades
--Thermal ratings of Eligible Customer's Control Area ties with other
Control Areas;
(vii) Service Commencement Date and the term of the requested
Network Integration Transmission Service. The minimum term for Network
Integration Transmission Service is one year.
Unless the Parties agree to a different time frame, the
Transmission Provider must acknowledge the request within ten (10) days
of receipt. The acknowledgment must include a date by which a response,
including a Service Agreement, will be sent to the Eligible Customer.
If an Application fails to meet the requirements of this section, the
Transmission Provider shall notify the Eligible Customer requesting
service within fifteen (15) days of receipt and specify the reasons for
such failure. Wherever possible, the Transmission Provider will attempt
to remedy deficiencies in the Application through informal
communications with the Eligible Customer. If such efforts are
unsuccessful, the Transmission Provider shall return the Application
without prejudice to the Eligible Customer filing a new or revised
Application that fully complies with the requirements of this section.
The Eligible Customer will be assigned a new priority consistent with
the date of the new or revised Application. The Transmission Provider
shall treat this information consistent with the standards of conduct
contained in Part 37 of the Commission's regulations.
29.3 Technical Arrangements to be Completed Prior to Commencement of
Service
Network Integration Transmission Service shall not commence until
the Transmission Provider and the Network Customer or a third party,
have completed installation of all equipment specified under the
Network Operating Agreement consistent with Good Utility Practice and
any additional requirements reasonably and consistently imposed to
ensure the reliable operation of the Transmission System. The
Transmission Provider shall exercise reasonable efforts, in
coordination with the Network Customer to complete such arrangements as
soon as practicable taking into consideration the Service Commencement
Date.
29.4 Network Customer Facilities
The provision of Network Integration Transmission Service shall be
conditioned upon the Network Customer constructing, maintaining and
operating the facilities on its side of each delivery point or
interconnection necessary to reliably deliver capacity and energy from
the Transmission Provider's Transmission System to the Network
Customer. The Network Customer shall be solely responsible for
constructing or installing all facilities on the Network Customer's
side of each such delivery point or interconnection.
29.5 This section is intentionally left blank.
30 Network Resources
30.1 Designation of Network Resources
Network Resources shall include all generation owned, purchased, or
leased by the Network Customer designated to serve Network Load under
the Tariff. Network Resources may not include resources, or any portion
thereof, that are committed for sale to non-designated third party load
or otherwise cannot be called upon to meet the Network Customer's
Network Load on a non-interruptible basis. Any owned or purchased
resources that were serving the Network Customer's loads under firm
agreements entered into on or before the Service Commencement Date
shall initially be designated as Network Resources until the Network
Customer terminates the designation of such resources.
30.2 Designation of New Network Resources
The Network Customer may designate a new Network Resource by
providing the Transmission Provider with as much advance notice as
practicable. A designation of a new Network Resource must be made by a
request for modification of service pursuant to an Application under
Section 29.
30.3 Termination of Network Resources
The Network Customer may terminate the designation of all or part
of a generating resource as a Network Resource at any time but should
provide notification to the Transmission Provider as soon as reasonably
practicable.
30.4 Operation of Network Resources
The Network Customer shall not operate its designated Network
Resources located in the Network Customer's or Transmission Provider's
Control Area such that the output of those facilities exceeds its
designated Network Load, plus non-firm sales delivered pursuant to Part
II of the Tariff, plus losses. This limitation shall not apply to
changes in the operation of a Transmission Customer's Network Resources
at the request of the Transmission Provider to respond to an emergency
or other unforeseen
[[Page 548]]
condition which may impair or degrade the reliability of the
Transmission System.
30.5 Network Customer Redispatch Obligation
As a condition to receiving Network Integration Transmission
Service, the Network Customer agrees to redispatch its Network
Resources as requested by the Transmission Provider pursuant to Section
33.2. To the extent practical, the redispatch of resources pursuant to
this section shall be on a least cost, non-discriminatory basis between
all Network Customers, and the Transmission Provider.
30.6 Transmission Arrangements for Network Resources Not Physically
Interconnected With The Transmission Provider
The Network Customer shall be responsible for any arrangements
necessary to deliver capacity and energy from a Network Resource not
physically interconnected with the Transmission Provider's Transmission
System. The Transmission Provider will undertake reasonable efforts to
assist the Network Customer in obtaining such arrangements, including
without limitation, providing any information or data required by such
other entity pursuant to Good Utility Practice.
30.7 Limitation on Designation of Network Resources
The Network Customer must demonstrate that it owns or has committed
to purchase generation pursuant to an executed contract in order to
designate a generating resource as a Network Resource. Alternatively,
the Network Customer may establish that execution of a contract is
contingent upon the availability of transmission service under Part III
of the Tariff.
30.8 Use of Interface Capacity by the Network Customer
There is no limitation upon a Network Customer's use of the
Transmission Provider's Transmission System at any particular interface
to integrate the Network Customer's Network Resources (or substitute
economy purchases) with its Network Loads. However, a Network
Customer's use of the Transmission Provider's total interface capacity
with other transmission systems may not exceed the Network Customer's
Load.
30.9 Network Customer Owned Transmission Facilities
The Network Customer that owns existing transmission facilities
that are integrated with the Transmission Provider's Transmission
System may be eligible to receive consideration either through a
billing credit or some other mechanism. In order to receive such
consideration the Network Customer must demonstrate that its
transmission facilities are integrated into the plans or operations of
the Transmission Provider to serve its power and transmission
customers. For facilities constructed by the Network Customer
subsequent to the Service Commencement Date under Part III of the
Tariff, the Network Customer shall receive credit where such facilities
are jointly planned and installed in coordination with the Transmission
Provider. Calculation of the credit shall be addressed in either the
Network Customer's Service Agreement or any other agreement between the
Parties.
31 Designation of Network Load
31.1 Network Load
The Network Customer must designate the individual Network Loads on
whose behalf the Transmission Provider will provide Network Integration
Transmission Service. The Network Loads shall be specified in the
Service Agreement.
31.2 New Network Loads Connected With the Transmission Provider
The Network Customer shall provide the Transmission Provider with
as much advance notice as reasonably practicable of the designation of
new Network Load that will be added to its Transmission System. A
designation of new Network Load must be made through a modification of
service pursuant to a new Application. The Transmission Provider will
use due diligence to install any transmission facilities required to
interconnect a new Network Load designated by the Network Customer. The
costs of new facilities required to interconnect a new Network Load
shall be determined in accordance with the procedures provided in
Section 32.4 and shall be charged to the Network Customer in accordance
with Commission policies.
31.3 Network Load Not Physically Interconnected with the Transmission
Provider
This section applies to both initial designation pursuant to
Section 31.1 and the subsequent addition of new Network Load not
physically interconnected with the Transmission Provider. To the extent
that the Network Customer desires to obtain transmission service for a
load outside the Transmission Provider's Transmission System, the
Network Customer shall have the option of (1) electing to include the
entire load as Network Load for all purposes under Part III of the
Tariff and designating Network Resources in connection with such
additional Network Load, or (2) excluding that entire load from its
Network Load and purchasing Point-To-Point Transmission Service under
Part II of the Tariff. To the extent that the Network Customer gives
notice of its intent to add a new Network Load as part of its Network
Load pursuant to this section the request must be made through a
modification of service pursuant to a new Application.
31.4 New Interconnection Points
To the extent the Network Customer desires to add a new Delivery
Point or interconnection point between the Transmission Provider's
Transmission System and a Network Load, the Network Customer shall
provide the Transmission Provider with as much advance notice as
reasonably practicable.
31.5 Changes in Service Requests
Under no circumstances shall the Network Customer's decision to
cancel or delay a requested change in Network Integration Transmission
Service (e.g. the addition of a new Network Resource or designation of
a new Network Load) in any way relieve the Network Customer of its
obligation to pay the costs of transmission facilities constructed by
the Transmission Provider and charged to the Network Customer as
reflected in the Service Agreement. However, the Transmission Provider
must treat any requested change in Network Integration Transmission
Service in a non-discriminatory manner. The Transmission Provider will
have no obligation to refund any advance of funds expended for purposes
of providing facilities for a Network Customer. However, upon receipt
of a Network Customer's written notice of such a cancellation or delay,
the Transmission Provider will use the same reasonable efforts to
mitigate the costs and charges owed to the Transmission Provider as it
would to reduce its own costs and charges.
31.6 Annual Load and Resource Information Updates
The Network Customer shall provide the Transmission Provider with
annual updates of Network Load and Network Resource forecasts
consistent with those included in its Application for Network
Integration Transmission Service under Part III of the Tariff. The
Network Customer also shall provide the Transmission Provider with
timely
[[Page 549]]
written notice of material changes in any other information provided in
its Application relating to the Network Customer's Network Load,
Network Resources, its transmission system or other aspects of its
facilities or operations affecting the Transmission Provider's ability
to provide reliable service.
32 Additional Study Procedures for Network Integration Transmission
Service Requests
32.1 Notice of Need for System Impact Study
After receiving a request for service, the Transmission Provider
shall determine on a non-discriminatory basis whether a System Impact
Study is needed. A description of the Transmission Provider's
methodology for completing a System Impact Study is provided in
Attachment D. If the Transmission Provider determines that a System
Impact Study is necessary to accommodate the requested service, it
shall so inform the Eligible Customer, as soon as practicable. In such
cases, the Transmission Provider shall within thirty (30) days of
receipt of a Completed Application, tender a System Impact Study
Agreement pursuant to which the Eligible Customer shall agree to
advance funds to the Transmission Provider for performing the required
System Impact Study. For a service request to remain a Completed
Application, the Eligible Customer shall execute the System Impact
Study Agreement and return it to the Transmission Provider within
fifteen (15) days. If the Eligible Customer elects not to execute the
System Impact Study Agreement, its Application shall be deemed
withdrawn.
32.2 System Impact Study Agreement and Compensation
(i) The System Impact Study Agreement will clearly specify the
Transmission Provider's estimate of the actual cost, and time for
completion of the System Impact Study. The charge shall not exceed the
actual cost of the study. In performing the System Impact Study, the
Transmission Provider shall rely, to the extent reasonably practicable,
on existing transmission planning studies. The Eligible Customer will
not be assessed a charge for such existing studies; however, the
Eligible Customer will be responsible for charges associated with any
modifications to existing planning studies that are reasonably
necessary to evaluate the impact of the Eligible Customer's request for
service on the Transmission System.
(ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation, a single
System Impact Study is sufficient for the Transmission Provider to
accommodate the service requests, the costs of that study shall be pro-
rated among the Eligible Customers.
(iii) For System Impact Studies that the Transmission Provider
conducts on its own behalf, the Transmission Provider shall record the
cost of the System Impact Studies pursuant to Section 8.
32.3 System Impact Study Procedures
Upon receipt of an executed System Impact Study Agreement, the
Transmission Provider will use due diligence to complete the required
System Impact Study within a sixty (60) day period. The System Impact
Study shall identify any system constraints and redispatch options,
additional Direct Assignment Facilities or Network Upgrades required to
provide the requested service. In the event that the Transmission
Provider is unable to complete the required System Impact Study within
such time period, it shall so notify the Eligible Customer and provide
an estimated completion date along with an explanation of the reasons
why additional time is required to complete the required studies. A
copy of the completed System Impact Study and related work papers shall
be made available to the Eligible Customer. The Transmission Provider
will use the same due diligence in completing the System Impact Study
for an Eligible Customer as it uses when completing studies for itself.
The Transmission Provider shall notify the Eligible Customer
immediately upon completion of the System Impact Study if the
Transmission System will be adequate to accommodate all or part of a
request for service or that no costs are likely to be incurred for new
transmission facilities or upgrades. In order for a request to remain a
Completed Application, within fifteen (15) days of completion of the
System Impact Study the Eligible Customer must execute a Service
Agreement or request service without an executed Service Agreement
pursuant to Section 29.1, or the Application shall be deemed terminated
and withdrawn.
32.4 Facilities Study Procedures
If a System Impact Study indicates that additions or upgrades to
the Transmission System are needed to supply the Eligible Customer's
service request, the Transmission Provider, within thirty (30) days of
the completion of the System Impact Study, shall tender to the Eligible
Customer a Facilities Study Agreement pursuant to which the Eligible
Customer shall agree to advance funds to the Transmission Provider for
performing the required Facilities Study. For a service request to
remain a Completed Application, the Eligible Customer shall execute the
Facilities Study Agreement and return it to the Transmission Provider
within fifteen (15) days. If the Eligible Customer elects not to
execute the Facilities Study Agreement, its Application shall be deemed
withdrawn. Upon receipt of an executed Facilities Study Agreement, the
Transmission Provider will use due diligence to complete the required
Facilities Study within a sixty (60) day period. If the Transmission
Provider is unable to complete the Facilities Study in the allotted
time period, the Transmission Provider shall notify the Eligible
Customer and provide an estimate of the time needed to reach a final
determination along with an explanation of the reasons that additional
time is required to complete the study. When completed, the Facilities
Study will include a good faith estimate of (i) the cost of Direct
Assignment Facilities to be charged to the Eligible Customer, (ii) the
Eligible Customer's appropriate share of the cost of any required
Network Upgrades, and (iii) the time required to complete such
construction and initiate the requested service. The Eligible Customer
shall advance funds to the Transmission Provider for the construction
of new facilities and such advance and construction shall be provided
for in a separate agreement. If the construction of new facilities
requires the expenditure of Transmission Provider funds, such
construction shall be contingent upon the availability of appropriated
funds. The Eligible Customer shall have thirty (30) days to execute a
construction agreement and a Service Agreement and provide the advance
payment or request service without an executed Service Agreement
pursuant to Section 29.1 and pay the Transmission Customer's share of
the costs or the request no longer will be a Completed Application and
shall be deemed terminated and withdrawn. Any advance payment made by
the Transmission Customer that is in excess of the costs incurred by
the Transmission Provider shall be refunded.
33 Load Shedding and Curtailments
33.1 Procedures
Prior to the Service Commencement Date, the Transmission Provider
and the
[[Page 550]]
Network Customer shall establish Load Shedding and Curtailment
procedures pursuant to the Network Operating Agreement with the
objective of responding to contingencies on the Transmission System.
The Parties will implement such programs during any period when the
Transmission Provider determines that a system contingency exists and
such procedures are necessary to alleviate such contingency. The
Transmission Provider will notify all affected Network Customers in a
timely manner of any scheduled Curtailment.
33.2 Transmission Constraints
During any period when the Transmission Provider determines that a
transmission constraint exists on the Transmission System, and such
constraint may impair the reliability of the Transmission Provider's
system, the Transmission Provider will take whatever actions,
consistent with Good Utility Practice, that are reasonably necessary to
maintain the reliability of the Transmission Provider's system. To the
extent the Transmission Provider determines that the reliability of the
Transmission System can be maintained by redispatching resources, the
Transmission Provider will initiate procedures pursuant to the Network
Operating Agreement to redispatch all Network Resources and the
Transmission Provider's own resources on a least-cost basis without
regard to the ownership of such resources. Any redispatch under this
section may not unduly discriminate between the Transmission Provider's
use of the Transmission System on behalf of its Native Load Customers
and any Network Customer's use of the Transmission System to serve its
designated Network Load.
33.3 Cost Responsibility for Relieving Transmission Constraints
Whenever the Transmission Provider implements least-cost redispatch
procedures in response to a transmission constraint, the Transmission
Provider and Network Customers will each bear a proportionate share of
the total redispatch cost based on their respective Load Ratio Shares.
33.4 Curtailments of Scheduled Deliveries
If a transmission constraint on the Transmission Provider's
Transmission System cannot be relieved through the implementation of
least-cost redispatch procedures and the Transmission Provider
determines that it is necessary to Curtail scheduled deliveries, the
Parties shall Curtail such schedules in accordance with the Network
Operating Agreement.
33.5 Allocation of Curtailments
The Transmission Provider shall, on a non-discriminatory basis,
Curtail the transaction(s) that effectively relieve the constraint.
However, to the extent practicable and consistent with Good Utility
Practice, any Curtailment will be shared by the Transmission Provider
and Network Customer in proportion to their respective Load Ratio
Shares. The Transmission Provider shall not direct the Network Customer
to Curtail schedules to an extent greater than the Transmission
Provider would Curtail the Transmission Provider's schedules under
similar circumstances.
33.6 Load Shedding
To the extent that a system contingency exists on the Transmission
Provider's Transmission System and the Transmission Provider determines
that it is necessary for the Transmission Provider and the Network
Customer to shed load, the Parties shall shed load in accordance with
previously established procedures under the Network Operating
Agreement.
33.7 System Reliability
Notwithstanding any other provisions of this Tariff, the
Transmission Provider reserves the right, consistent with Good Utility
Practice and on a not unduly discriminatory basis, to Curtail Network
Integration Transmission Service without liability on the Transmission
Provider's part for the purpose of making necessary adjustments to,
changes in, or repairs on its lines, substations and facilities, and in
cases where the continuance of Network Integration Transmission Service
would endanger persons or property. In the event of any adverse
condition(s) or disturbance(s) on the Transmission Provider's
Transmission System or on any other system(s) directly or indirectly
interconnected with the Transmission Provider's Transmission System,
the Transmission Provider, consistent with Good Utility Practice, also
may Curtail Network Integration Transmission Service in order to (i)
limit the extent or damage of the adverse condition(s) or
disturbance(s), (ii) prevent damage to generating or transmission
facilities, or (iii) expedite restoration of service. The Transmission
Provider will give the Network Customer as much advance notice as is
practicable in the event of such Curtailment. Any Curtailment of
Network Integration Transmission Service will be not unduly
discriminatory relative to the Transmission Provider's use of the
Transmission System on behalf of its Native Load Customers. The
Transmission Provider shall specify the rate treatment and all related
terms and conditions applicable in the event that the Network Customer
fails to respond to established Load Shedding and Curtailment
procedures.
34 Rates and Charges
The Network Customer shall pay the Transmission Provider for any
Direct Assignment Facilities, Ancillary Services, and applicable study
costs, consistent with Federal policy, along with the following:
34.1 Monthly Demand Charge
The Network Customer shall pay a monthly Demand Charge, which shall
be determined by multiplying its Load Ratio Share times one twelfth
(\1/12\) of the Transmission Provider's Annual Transmission Revenue
Requirement specified in Schedule H.
34.2 Determination of Network Customer's Monthly Network Load
The Network Customer's monthly Network Load is its hourly load
(including its designated Network Load not physically interconnected
with the Transmission Provider under Section 31.3) coincident with the
Transmission Provider's Monthly Transmission System Peak.
34.3 Determination of Transmission Provider's Monthly Transmission
System Load
The Transmission Provider's monthly Transmission System load is the
Transmission Provider's Monthly Transmission System Peak minus the
coincident peak usage of all Firm Point-To-Point Transmission Service
customers pursuant to Part II of this Tariff plus the Reserved Capacity
of all Firm Point-To-Point Transmission Service customers.
34.4 Redispatch Charge
The Network Customer shall pay a Load Ratio Share of any redispatch
costs allocated between the Network Customer and the Transmission
Provider pursuant to Section 33. To the extent that the Transmission
Provider incurs an obligation to the Network Customer for redispatch
costs in accordance with Section 33, such amounts shall be credited
against the Network Customer's bill for the applicable month.
[[Page 551]]
34.5 Stranded Cost Recovery
The Transmission Provider may seek to recover stranded costs from
the Network Customer in a manner consistent with applicable Federal law
and regulations.
35 Operating Arrangements
35.1 Operation under The Network Operating Agreement
The Network Customer shall plan, construct, operate and maintain
its facilities in accordance with Good Utility Practice and in
conformance with the Network Operating Agreement.
35.2 Network Operating Agreement
The terms and conditions under which the Network Customer shall
operate its facilities and the technical and operational matters
associated with the implementation of Part III of the Tariff shall be
specified in the Network Operating Agreement. The Network Operating
Agreement shall provide for the Parties to (i) operate and maintain
equipment necessary for integrating the Network Customer within the
Transmission Provider's Transmission System (including, but not limited
to, remote terminal units, metering, communications equipment and
relaying equipment), (ii) transfer data between the Transmission
Provider and the Network Customer (including, but not limited to, heat
rates and operational characteristics of Network Resources, generation
schedules for units outside the Transmission Provider's Transmission
System, interchange schedules, unit outputs for redispatch required
under Section 33, voltage schedules, loss factors and other real time
data), (iii) use software programs required for data links and
constraint dispatching, (iv) exchange data on forecasted loads and
resources necessary for long-term planning, and (v) address any other
technical and operational considerations required for implementation of
Part III of the Tariff, including scheduling protocols. The Network
Operating Agreement will recognize that the Network Customer shall
either (i) operate as a Control Area under applicable guidelines of the
North American Electric Reliability Council (NERC) and the applicable
regional reliability council, (ii) satisfy its Control Area
requirements, including all necessary Ancillary Services, by
contracting with the Transmission Provider, or (iii) satisfy its
Control Area requirements, including all necessary Ancillary Services,
by contracting with another entity, consistent with Good Utility
Practice, which satisfies NERC and the applicable regional reliability
council requirements. The Transmission Provider shall not unreasonably
refuse to accept contractual arrangements with another entity for
Ancillary Services. The Network Operating Agreement is included in
Attachment G.
35.3 Network Operating Committee
A Network Operating Committee (Committee) shall be established to
coordinate operating criteria for the Parties' respective
responsibilities under the Network Operating Agreement. Each Network
Customer shall be entitled to have at least one representative on the
Committee. The Committee shall meet from time to time as need requires,
but no less than once each calendar year.
Schedule 1
Scheduling, System Control and Dispatch Service
This service is required to schedule the movement of power through,
out of, within, or into a Control Area. This service can be provided
only by the operator of the Control Area in which the transmission
facilities used for transmission service are located. Scheduling,
System Control and Dispatch Service is provided directly by the
Transmission Provider if the Transmission Provider is the Control Area
Operator or indirectly by the Transmission Provider making arrangements
with the Control Area operator that performs this service for the
Transmission Provider's Transmission System. The Transmission Customer
must purchase this service from the Transmission Provider or the
Control Area operator. The charges for Scheduling, System Control and
Dispatch Service are to be based on the rates referred to below. To the
extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The Transmission System specific charges for Scheduling, System
Control and Dispatch Service are set forth in the appropriate rate
schedule attached to and made part of the applicable Service Agreement.
The rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Scheduling,
System Control and Dispatch Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Scheduling, System Control and Dispatch Service shall be
as set forth in a subsequent rate schedule promulgated pursuant to
applicable Federal laws, regulations and policies and attached to and
made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 2
Reactive Supply and Voltage Control From Generation Sources Service
In order to maintain transmission voltages on the Transmission
Provider's transmission facilities within acceptable limits, generation
facilities under the control of the Control Area operator are operated
to produce or absorb reactive power. Thus, Reactive Supply and Voltage
Control from Generation Sources Service must be provided for each
transaction on the Transmission Provider's transmission facilities. The
amount of Reactive Supply and Voltage Control from Generation Sources
Service that must be supplied with respect to the Transmission
Customer's transaction will be determined based on the reactive power
support necessary to maintain transmission voltages within limits that
are generally accepted in the region and consistently adhered to by the
Transmission Provider.
Reactive Supply and Voltage Control from Generation Sources Service
can be provided directly by the Transmission Provider if the
Transmission Provider is the Control Area operator or indirectly by the
Transmission Provider making arrangements with the Control Area
operator that performs this service for the Transmission Provider's
Transmission System. The Transmission Customer must purchase this
service from the Transmission Provider or the Control Area operator.
The charges for such service will be based upon the rates referred to
below. To the extent the Control Area operator performs this service
for the Transmission Provider, charges to the Transmission Customer are
to reflect only a pass-through of the costs charged to the Transmission
Provider by the Control Area Operator.
The Transmission System specific charges for Reactive Supply and
Voltage Control from Generation Sources Service are set forth in the
appropriate rate schedule attached to and made part of the applicable
Service Agreement. The rates or rate methodology used to calculate the
charges for service under this schedule were promulgated and may be
modified pursuant to applicable Federal laws, regulations and policies.
[[Page 552]]
The Transmission Provider may modify the charges for Reactive
Supply and Voltage Control from Generation Sources Service upon written
notice to the Transmission Customer. Any change to the charges to the
Transmission Customer for Reactive Supply and Voltage Control from
Generation Sources Service shall be as set forth in a subsequent rate
schedule promulgated pursuant to applicable Federal laws, regulations
and policies and attached to and made part of the applicable Service
Agreement. The Transmission Provider shall charge the Transmission
Customer in accordance with the rate then in effect.
Schedule 3
Regulation and Frequency Response Service
Regulation and Frequency Response Service is necessary to provide
for the continuous balancing of resources, generation and interchange,
with load and for maintaining scheduled interconnection frequency at
sixty cycles per second (60 Hz). Regulation and Frequency Response
Service is accomplished by committing on-line generation whose output
is raised or lowered, predominantly through the use of automatic
generating control equipment, as necessary to follow the moment-by-
moment changes in load. The obligation to maintain this balance between
resources and load lies with the Transmission Provider (or the Control
Area operator that performs this function for the Transmission
Provider). The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Regulation and Frequency Response Service obligation. The
charges for Regulation and Frequency Response Service are referred to
below. The amount of Regulation and Frequency Response Service will be
set forth in the Service Agreement. To the extent the Control Area
operator performs this service for the Transmission Provider, charges
to the Transmission Customer are to reflect only a pass-through of the
costs charged to the Transmission Provider by that Control Area
operator.
The Transmission System specific charges for Regulation and
Frequency Response Service are set forth in the appropriate rate
schedule attached to and made part of the applicable Service Agreement.
The rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Regulation and
Frequency Response Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Regulation and Frequency Response Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to applicable Federal
laws, regulations and policies and attached to and made part of the
applicable Service Agreement. The Transmission Provider shall charge
the Transmission Customer in accordance with the rate then in effect.
Schedule 4
Energy Imbalance Service
Energy Imbalance Service is provided when a difference occurs
between the scheduled and the actual delivery of energy to a load
located within a Control Area over a single hour. The Transmission
Provider must offer this service when the transmission service is used
to serve load within its Control Area. The Transmission Customer must
either obtain this service from the Transmission Provider or make
alternative comparable arrangements to satisfy its Energy Imbalance
Service obligation. To the extent the Control Area operator performs
this service for the Transmission Provider, charges to the Transmission
Customer are to reflect only a pass-through of the costs charged to the
Transmission Provider by that Control Area operator.
The Transmission Provider shall establish a deviation band of +/
-1.5 percent (with a minimum of 2 MW) of the scheduled transaction to
be applied hourly to any energy imbalance that occurs as a result of
the Transmission Customer's scheduled transaction(s). Parties should
attempt to eliminate energy imbalances within the limits of the
deviation band within thirty (30) days or within such other reasonable
period of time as is generally accepted in the region and consistently
adhered to by the Transmission Provider. If an energy imbalance is not
corrected within thirty (30) days or a reasonable period of time that
is generally accepted in the region and consistently adhered to by the
Transmission Provider, the Transmission Customer will compensate the
Transmission Provider for such service. Energy imbalances outside the
deviation band will be subject to charges to be specified by the
Transmission Provider. Compensation for Energy Imbalance Service will
be as set forth below.
The Transmission System specific compensation for Energy Imbalance
Service is set forth in the appropriate rate schedule attached to and
made part of the applicable Service Agreement. The rates or rate
methodology used to calculate the charges for service under this
schedule were promulgated and may be modified pursuant to applicable
Federal laws, regulations and policies.
The Transmission Provider may modify the compensation for Energy
Imbalance Service upon written notice to the Transmission Customer. Any
change to the compensation to the Transmission Customer for Energy
Imbalance Service shall be as set forth in a subsequent rate schedule
promulgated pursuant to applicable Federal laws, regulations and
policies and attached to and made part of the applicable Service
Agreement. The Transmission Provider shall charge the Transmission
Customer in accordance with the rate then in effect.
Schedule 5
Opeating Reserve--Spinning Reserve Service
Spinning Reserve Service is needed to serve load immediately in the
event of a system contingency. Spinning Reserve Service may be provided
by generating units that are on-line and loaded at less than maximum
output. The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Spinning Reserve Service obligation. The charges for
Spinning Reserve Service are referred to below. The amount of Spinning
Reserve Service will be set forth in the Service Agreement. To the
extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The Transmission System specific charges for Operating Reserve--
Spinning Reserve Service are set forth in the appropriate rate schedule
attached to and made part of the applicable Service Agreement. The
rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
[[Page 553]]
The Transmission Provider may modify the charges for Operating
Reserve--Spinning Reserve Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Operating Reserve--Spinning Reserve Service shall be as
set forth in a subsequent rate schedule promulgated pursuant to
applicable Federal laws, regulations and policies and attached to and
made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 6
Operating Reserve--Supplemental Reserve Service
Supplemental Reserve Service is needed to serve load in the event
of a system contingency; however, it is not available immediately to
serve load but rather within a short period of time. Supplemental
Reserve Service may be provided by generating units that are on-line
but unloaded, by quick-start generation or by interruptible load. The
Transmission Provider must offer this service when the transmission
service is used to serve load within its Control Area. The Transmission
Customer must either purchase this service from the Transmission
Provider or make alternative comparable arrangements to satisfy its
Supplemental Reserve Service obligation. The charges for Supplemental
Reserve Service are referred to below. The amount of Supplemental
Reserve Service will be set forth in the Service Agreement. To the
extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The Transmission System specific charges for Operating Reserve--
Supplemental Reserve Service are set forth in the appropriate rate
schedule attached to and made part of the applicable Service Agreement.
The rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Operating
Reserve--Supplemental Reserve Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Operating Reserve--Supplemental Reserve Service shall be
as set forth in a subsequent rate schedule promulgated pursuant to
applicable Federal laws, regulations and policies and attached to and
made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 7
Long-Term Firm and Short-Term Firm Point-to-Point Transmission Service
The Transmission Customer shall compensate the Transmission
Provider each month for Reserved Capacity pursuant to the Transmission
System specific Firm Point-to-Point Transmission Service Rate Schedule
attached to and made a part of the applicable Service Agreement. The
rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Firm Point-to-
Point Transmission Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Firm Point-to-Point Transmission Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to applicable Federal
laws, regulations and policies and attached to and made part of the
applicable Service Agreement. The Transmission Provider shall charge
the Transmission Customer in accordance with the rate then in effect.
Discounts: Three principal requirements apply to discounts for
transmission service as follows: (1) Any offer of a discount made by
the Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts, including requests for use by one's wholesale merchant or an
affiliate's use, must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
Point(s) of Receipt to Point(s) of Delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
Schedule 8
Non-Firm Point-To-Point Transmission Service
The Transmission Customer shall compensate the Transmission
Provider for Non-Firm Point-to-Point Transmission Service pursuant to
the Transmission System specific Non-Firm Point-to-Point Transmission
Service Rate Schedule attached to and made a part of the applicable
Service Agreement. The rates or rate methodology used to calculate the
charges for service under this schedule were promulgated and may be
modified pursuant to applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Non-Firm
Point-to-Point Transmission Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Non-Firm Point-to-Point Transmission Service shall be as
set forth in a subsequent rate schedule promulgated pursuant to
applicable Federal laws, regulations and policies and attached to and
made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Discounts: Three principal requirements apply to discounts for
transmission service as follows: (1) Any offer of a discount made by
the Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts, including requests for use by one's wholesale merchant or an
affiliate's use, must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
Point(s) of Receipt to Point(s) of Delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
Attachment A
Form of Service Agreement for Firm Point-To-Point Transmission Service
1.0 This Service Agreement, dated as of ____________, is
entered into, by and between the (Region) of Western Area Power
Administration (Transmission Provider), and __________ (Transmission
Customer). The Transmission Provider may revise charges or losses
for Firm Point-to-Point Transmission Service provided under this
Service
[[Page 554]]
Agreement pursuant to applicable Federal Laws, regulations and
policies upon written notice to the Transmission Customer.
2.0 The Transmission Customer has been determined by the
Transmission Provider to have a Completed Application for Firm
Point-To-Point Transmission Service under the Tariff.
3.0 The Transmission Customer has provided to the Transmission
Provider a nonrefundable Application processing fee in accordance
with the provisions of Section 17.3 of the Tariff.
4.0 Service under this agreement shall commence on the later of
(1) the requested Service Commencement Date, or (2) the date on
which construction of any Direct Assignment Facilities and/or
Network Upgrades are completed, or (3) such other date as is
mutually agreed. Service under this agreement shall terminate on
__________.
5.0 The Transmission Provider agrees to provide and the
Transmission Customer agrees to take and pay for Firm Point-To-Point
Transmission Service in accordance with the provisions of Part II of
the Tariff, and this Service Agreement.
6.0 Any notice or request made to or by either Party regarding
this Service Agreement shall be made to the representative of the
other Party as indicated below.
Transmission Provider:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Transmission Customer:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
7.0 The Tariff and the ``Specifications For Long-Term Firm
Point-To-Point'' as presently constituted or as they may be revised
or superseded are incorporated herein and made a part hereof.
In Witness Whereof, the Parties have caused this Service
Agreement to be executed by their respective authorized officials.
WESTERN AREA POWER ADMINISTRATION
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
Specifications for Long-Term Firm Point-To-Point Transmission Service
For purposes of this Service Agreement, the Transmission
Provider's Transmission System consists of the facilities of the
(Region) as described in Attachment K.
1.0 Term of Transaction-----------------------------------------------
Start Date:------------------------------------------------------------
Termination Date:------------------------------------------------------
2.0 Description of capacity and energy to be transmitted by
Transmission Provider including the electric Control Area in which
the transaction originates.
----------------------------------------------------------------------
3.0 Point(s) of Receipt:----------------------------------------------
Delivering Party:------------------------------------------------------
Capacity Reservation:--------------------------------------------------
4.0 Point(s) of Delivery:---------------------------------------------
Receiving Party:-------------------------------------------------------
Capacity Reservation:--------------------------------------------------
5.0 The Maximum amount of capacity and energy to be transmitted
(Reserved Capacity) is : __________
6.0 Designation of party(ies) subject to reciprocal service
obligation:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
7.0 Name of the Control Area from which capacity and energy will be
delivered to the Transmission Provider for Transmission Service:
----------------------------------------------------------------------
Name of the Control Area to which capacity and energy will be
delivered by the Transmission Provider:
----------------------------------------------------------------------
Name(s) of any Intervening Systems providing transmission service:
----------------------------------------------------------------------
----------------------------------------------------------------------
8.0 Service under this Agreement may be subject to some combination
of the charges detailed below. The appropriate charges for
individual transactions will be determined in accordance with the
terms and conditions of the Tariff.
8.1 Transmission Charge:
----------------------------------------------------------------------
8.2 System Impact and/or Facilities Study Charge(s):
----------------------------------------------------------------------
----------------------------------------------------------------------
8.3 Direct Assignment Facilities Charge:
----------------------------------------------------------------------
8.4 Ancillary Services Charges:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
8.5 Redispatch Charges:
To be filled in if applicable.
8.6 Network Upgrade Charges:
To be filled in if applicable.
9.0 Power Factor: The Transmission Customer will be required to
maintain a power factor between__-percent lagging and__-percent
leading for all deliveries of capacity and energy to and from the
Transmission Provider's Transmission System.
10.0 Transmission Losses:
10.1 Loss Factors:
10.1.1 If, based on operating experience and technical studies,
the Transmission Provider determines that any of the transmission
loss factors on the Transmission Provider's Transmission System
differs from the loss factors set forth in this Service Agreement,
the Transmission Provider will notify the Transmission Customer of
the revised loss factor(s) pursuant to Section 1.0 of this Service
Agreement.
10.1.2 Transmission Provider Transmission Loss Factor:
Transmission Provider transmission losses shall initially be__% and
shall be assessed on the power scheduled and transmitted to a point
of delivery on the Transmission Provider's Transmission System.
11.0 Ancillary Services
11.1 Provided by Transmission Provider
11.1.1 Scheduling, System Control, and Dispatch Service
11.1.2 Reactive Supply and Voltage Control from Generation
Sources Service
11.2 Provided by Transmission Customer
11.2.1 (To be filled in if applicable)
11.2.2
11.3 Provided by______
11.3.1 (To be filled in if applicable)
11.3.2
12.0 Net Billing and Bill Crediting Option: The Parties have agreed
to implement [Net Billing, Bill Crediting, or both] as set forth in
Attachment J.
13.0 Charges for Service: Charges for Firm Point-to-Point
Transmission Service and associated Ancillary Services shall be
calculated in accordance with [Rate Schedules] attached hereto and
made a part of this Service Agreement. The rates or rate methodology
used to calculate the charges for service under that schedule were
promulgated and may be modified pursuant to applicable Federal laws,
regulations and policies. [This section will be included as
appropriate at the Transmission Provider's discretion]
14.0 Independent System Operator: The Parties understand that the
Transmission Provider may join an independent system operator under
Commission jurisdiction. In the event the Transmission Provider
either joins or is required to conform to protocols of the
independent system operator, the Parties agree that the Transmission
Provider either may (1) may make any changes necessary to conform to
the terms and conditions required by Commission approval of the
independent system operator, or (2) terminate this Service Agreement
by providing a one-year written notice to the Transmission Customer.
Attachment B
Form of Service Agreement for Non-Firm Point-To-Point Transmission
Service
1.0 This Service Agreement, dated as of________, is entered
into, by and between the (Region) of Western Area Power
Administration (Transmission Provider), and________(Transmission
Customer). The Transmission Provider may revise charges or losses
for Non-Firm Point-to-Point Transmission Service provided under this
Service Agreement pursuant to applicable Federal laws, regulations
and policies upon written notice to the Transmission Customer.
2.0 The Transmission Customer has been determined by the
Transmission Provider to be a Transmission Customer under Part II of
the Tariff and has filed a Completed Application for Non-Firm Point-
To-Point Transmission Service in accordance with Section 18.2 of the
Tariff.
3.0 Service under this Service Agreement shall be provided by
the Transmission Provider upon request by an authorized
representative of the Transmission Customer.
[[Page 555]]
For purposes of this Service Agreement, the Transmission Provider's
Transmission System consists of the facilities of the (Region) as
described in Attachment K.
4.0 The Transmission Customer agrees to supply information the
Transmission Provider deems reasonably necessary in accordance with
Good Utility Practice in order for it to provide the requested
service.
5.0 The Transmission Provider agrees to provide and the
Transmission Customer agrees to take and pay for Non-Firm Point-To-
Point Transmission Service in accordance with the provisions of Part
II of the Tariff, and this Service Agreement.
6.0 Any notice or request made to or by either Party regarding
this Service Agreement shall be made to the representative of the
other Party as indicated below.
Transmission Provider:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Transmission Customer:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
7.0 The Tariff as presently constituted or as it may be revised
or superseded is incorporated herein and made a part hereof.
8.0 Power Factor: The Transmission Customer will be required to
maintain a power factor between __-percent lagging and __-percent
leading for all deliveries of capacity and energy to and from the
Transmission Provider's Transmission System.
9.0 Transmission Losses:
9.1 Loss Factors:
9.1.1 If, based on operating experience and technical studies,
the Transmission Provider determines that any of the transmission
loss factors on the Transmission Provider's Transmission System
differs from the loss factors set forth in this Service Agreement,
the Transmission Provider will notify the Transmission Customer of
the revised loss factor(s) pursuant to Section 1.0 of this Service
Agreement.
9.1.2 Transmission Provider Transmission Loss Factor:
Transmission Provider transmission losses shall initially be ______%
and shall be assessed on the power scheduled and transmitted to a
point of delivery on the Transmission Provider's Transmission
System.
10.0 Ancillary Services
10.1 Provided by Transmission Provider
10.1.1 Scheduling, System Control, and Dispatch Service
10.1.2 Reactive Supply and Voltage Control from Generation
Sources Service
10.2 Provided by Transmission Customer
10.2.1 To be filled in if appropriate
10.2.2
10.3 Provided by ______
10.3.1 To be filled in if appropriate
10.3.2
11.0 Net Billing and Bill Crediting Option: The Parties have
agreed to implement [Net Billing, Bill Crediting, or both] as set
forth in Attachment J.
12.0 Charges for Service: Charges for Non-Firm Point-to-Point
Transmission Service and associated Ancillary Services shall be
calculated in accordance with [Rate Schedules] attached hereto and
made a part of this Service Agreement. The rates or rate methodology
used to calculate the charges for service under that schedule were
promulgated and may be modified pursuant to applicable Federal laws,
regulations and policies. [This section will be included as
appropriate at the Transmission Provider's discretion.]
13.0 Independent System Operator: The Parties understand that
the Transmission Provider may join an independent system operator
under Commission jurisdiction. In the event the Transmission
Provider either joins or is required to conform to protocols of the
independent system operator, the Parties agree that the Transmission
Provider either may (1) may make any changes necessary to conform to
the terms and conditions required by Commission approval of the
independent system operator, or (2) terminate this Service Agreement
by providing a one-year written notice to the Transmission Customer.
In Witness Whereof, the Parties have caused this Service
Agreement to be executed by their respective authorized officials.
WESTERN AREA POWER ADMINISTRATION
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
Date:------------------------------------------------------------------
Attachment C
Methodology To Assess Available Transmission Capability
The Transmission Provider will compute the transmission transfer
capability available on a point-to-point basis from the Delivering
Party to the Receiving Party using Good Utility Practice and the
engineering and operating principles, standards, guidelines and
criteria of the Transmission Provider, the applicable Regional
Reliability Council, any entity of which the Transmission Provider
is a member and is approved by the Commission to promulgate or apply
regional or national reliability planning standards (such as a
regional transmission group, RTG), or any similar organization that
may exist in the future of which the Transmission Provider is then a
member. Principal items used to determine maximum transmission
transfer capability available shall include reliability,
transmission element loading, system contingency performance,
voltage levels, and stability. In determining Available Transmission
Capability, the Transmission Provider will reserve sufficient
transmission capability to meet its current and forecasted power
service obligations, current and forecasted Network Customer loads,
and existing transmission service obligations.
Attachment D
Methodology for Completing a System Impact Study
The Transmission Provider will assess the capability of the
Transmission System to provide the service requested using the
criteria and process for this assessment as detailed in Sections 4
and 5 of the Transmission Provider's annual FERC Form 715 submittal
in those instances where the Transmission Provider is a member of
the Western Systems Coordinating Council. (CRSP, DSW, RMR, and SNR)
The Transmission Provider will use the Mid-Continent Area Power Pool
(MAPP) System Impact Study Methodology when the Transmission
Provider is a member of MAPP. (UGPR)
Attachment E
Index of Point-To-Point Transmission Service Customers
------------------------------------------------------------------------
Customer Date of service agreement
------------------------------------------------------------------------
------------------------------------------------------------------------
Attachment F
Service Agreement for Network Integration Transmission Service
1.0 This Service Agreement, dated as of ________, is entered
into, by and between the (Region) of Western Area Power
Administration (Transmission Provider), and ________ (Transmission
Customer).
2.0 The Transmission Customer has been determined by the
Transmission Provider to have a Completed Application for Network
Integration Transmission Service under the Tariff.
3.0 Service under this Service Agreement shall commence on the
later of (1) ________, or (2) the date on which construction of any
Direct Assignment Facilities and/or Network Upgrades are completed,
or (3) such other date as is mutually agreed upon. Service under
this Service Agreement shall terminate on ________.
4.0 The Transmission Provider agrees to provide and the
Transmission Customer agrees to take and pay for Network Integration
Transmission Service in accordance with the provisions of Part III
of the Tariff, and this Service Agreement.
5.0 Any notice or request made to or by either Party regarding
this Service Agreement shall be made to the representative of the
other Party as indicated below.
Transmission Provider:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Transmission Customer:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
6.0 The Tariff and the ``Specifications for Network Integration
Transmission Service'' as presently constituted or as they may be
[[Page 556]]
revised or superseded are incorporated herein and made a part
hereof.
IN WITNESS WHEREOF, the Parties have caused this Service
Agreement to be executed by their respective authorized officials.
WESTERN AREA POWER ADMINISTRATION
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
Specifications for Network Integration Transmission Service
For purposes of this Service Agreement, the Transmission
Provider's Transmission System consists of the facilities of the
(Region) as described in Attachment K.
1.0 The Transmission Provider will provide Network Integration
Transmission Service over the Transmission Provider's Transmission
System for the delivery of capacity and energy from the Network
Customer's designated Network Resources to the Network Customer's
designated Network Load. The Transmission Provider will also provide
non-firm transmission service from non-designated Network Resources
under the terms of this Service Agreement. The loss factors
associated with this Network Integration Transmission Service are
set forth below. Such losses shall be applied and accounted for as
set forth in Section 4.
2.0 Designated Network Resources:
------------------------------------------------------------------------
Designated network resources
& estimated maximum Point of receipt Delivering party and
resource (MW) voltage
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
3.0 Designated Network Loads:
------------------------------------------------------------------------
Designated network load &
estimated maximum resource Point of delivery Voltage
(MW)
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
4.0 Transmission Losses:
4.1 Loss Factors:
4.1.1 If, based on operating experience and technical studies,
the Transmission Provider determines that any of the transmission
loss factors on the Transmission Provider's Transmission System
differs from the loss factors set forth in this Service Agreement,
the Transmission Provider will notify the Transmission Customer of
the revised loss factor(s) pursuant to Section 1.0 of this Service
Agreement.
4.1.2 Transmission Provider Transmission Loss Factor: For
deliveries to the Network Customer Network Load, Transmission
Provider transmission losses shall initially be __% and shall be
assessed on the power scheduled and transmitted to a point of
delivery on the Transmission Provider's Transmission System.
4.2 Transmission losses may be revised by written notice from
the Transmission Provider to the Transmission Customer.
5.0 The Network Customer's transmission facilities that are
integrated with the Transmission Provider's Transmission System will
receive ____ credit. These facilities include the following:
5.1 ________
5.2 ________
6.0 Names of any intervening systems with whom the Network
Customer has arranged for transmission service to the Transmission
Provider's Transmission System.
6.1 ________
6.2 ________
7.0 Power Factor: The Transmission Customer will be required to
maintain a power factor between ____-percent lagging and ____-
percent leading for all deliveries of capacity and energy to and
from the Transmission Provider's Transmission System.
8.0 Ancillary Services
8.1 Provided by Transmission Provider
8.1.1 Scheduling, System Control, and Dispatch Service
8.1.2 Reactive Supply and Voltage Control from Generation
Sources Service
8.2 Provided by Transmission Customer
8.2.1 (To be filled in if appropriate)
8.2.2
8.3 Provided by ________
8.3.1 (To be filled in if appropriate)
8.3.2
9.0 Net Billing and Bill Crediting Option: The Parties have
agreed to implement [Net Billing, Bill Crediting, or both] as set
forth in Attachment J.
10.0 Charges for Service: Charges for associated Ancillary
Services shall be calculated in accordance with [Rate Schedule]
attached hereto and made a part of this Service Agreement. The rates
or rate methodology used to calculate the charges for service under
that schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies. [This section
will be included as appropriate at the Transmission Provider's
discretion]
11.0 Independent System Operator: The Parties understand that
the Transmission Provider may join an independent system operator
under Commission jurisdiction. In the event the Transmission
Provider either joins or is required to conform to protocols of the
independent system operator, the Parties agree that the Transmission
Provider either (1) may make any changes necessary to conform to the
terms and conditions required by Commission approval of the
independent system operator, or (2) terminate this Service Agreement
by providing a one-year written notice to the Transmission Customer.
Attachment G
Network Operating Agreement
To be filed by the Transmission Provider at such time as the
Transmission Provider has negotiated or offered a Network
Integration Transmission Service Agreement. The terms and conditions
under which the Network Customer will be required to operate its
facilities and the technical and operational matters associated with
the implementation of Network Integration Transmission Service and
this Service
[[Page 557]]
Agreement will be specified in a separate Network Operating
Agreement.
The Network Operating Agreement will include provisions
addressing the following:
Authorized Representatives of the Parties
Network Operating Committee
Load Following
System Protection
Redispatch to Manage Transmission Constraints
Maintenance of Facilities
Load Shedding
Operation Impacts
Service Conditions
Data, Information and Reports
Metering
Communications
System Regulation and Operating Reserves
Assignment
Notices
Accounting for Transmission Losses
(Alternative language to be used only by UGPR) Network Integration
Transmission provided by the Transmission Provider will be
subject to all operating and scheduling procedures and protocols of
the Mid-Continent Area Power Pool (MAPP) as stated in the MAPP
Restated Agreement and the MAPP Operating Handbook as existing and
as may be amended, superseded or replaced. The Transmission Provider
will, therefore, not enter into a separate Network Operating
Agreement with each Network Customer.
Attachment H
Annual Transmission Revenue Requirement for Network Integration
Transmission Service
1.0 The Annual Transmission Revenue Requirement for purposes of
the Network Integration Transmission Service is to be set forth in a
separate Rate Schedule.
2.0 The amount in 1 shall be effective until amended by the
Transmission Provider or modified by the Commission pursuant to
applicable Federal laws, regulations and policies, and may be
revised upon written notice to the Transmission Customer.
Attachment I
Index of Network Integration Customers
------------------------------------------------------------------------
Customer Date of service agreement
------------------------------------------------------------------------
------------------------------------------------------------------------
Attachment J
Provisions Specific to the Transmission Provider
1.0 Change of Rates
Rates applicable under the Service Agreements shall be subject
to change by Western in accordance with appropriate rate adjustment
procedures. If at any time the United States promulgates a rate
changing a rate then in effect under a Service Agreement, it will
promptly notify the Transmission Customer thereof. Rates shall
become effective as to the Service Agreements as of the effective
date of such rate. The Transmission Customer, by written notice to
the Transmission Provider within ninety (90) days after the
effective date of a rate change, may elect to terminate the service
billed by the Transmission Provider under the new rate. Said
termination shall be effective on the last day of the billing period
requested by the Transmission Customer not later than two (2) years
after the effective date of the new rate. Service provided by the
Transmission Provider shall be paid for at the new rate regardless
of whether the Transmission Customer exercises the option to
terminate service.
2.0 Contingent Upon Appropriations
Where activities provided for in the Service Agreement extend
beyond the current fiscal year, continued expenditures by the
Transmission Provider are contingent upon Congress making necessary
appropriations required for the continued performance of the
Transmission Provider's obligations under the Service Agreement. In
the event that such appropriation by Congress is not made, the
Transmission Customer hereby releases the Transmission Provider from
its obligations under the Service Agreement and from all liability
due to the failure of Congress to make such appropriation.
3.0 Covenant Against Contingent Fees
The Transmission Customer warrants that no person or selling
agency has been employed or retained to solicit or secure the
Service Agreement upon a contract or understanding for a commission,
percentage, brokerage, or contingent fee, excepting bona fide
employees or bona fide established commercial or selling agencies
maintained by the Transmission Customer for the purpose of securing
business. For breach or violation of this warranty, the Transmission
Provider shall have the right to annul the Service Agreement without
liability or in its discretion to deduct from the Service Agreement
price or consideration the full amount of such commission,
percentage, brokerage, or contingent fee.
4.0 Contract Work Hours and Safety Standards
The Service Agreement, to the extent that it is of a character
specified in Section 103 of the Contract Work Hours and Safety
Standards Act (Act), 40 U.S.C. 329 (1986), is subject to the
provisions of the Act, 40 U.S.C. 327-333 (1986), and to regulations
promulgated by the Secretary of Labor pursuant to the Act.
5.0 Equal Opportunity Employment Practices
Section 202 of Executive Order No. 11246, 43 FR 46501 (1978),
which provides, among other things, that the Transmission Customer
will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, or national
origin, is incorporated by reference in the Service Agreement.
6.0 Use of Convict Labor
The Transmission Customer agrees not to employ any person
undergoing sentence of imprisonment in performing the Service
Agreement except as provided by 18 U.S.C. 4082(c)(2) and Executive
Order 11755, December 29, 1973.
7.0 Entire Agreement
The Service Agreements, including the Tariff, together with the
specifications under such Service Agreement and any completed
scheduling forms shall constitute the entire understanding between
the Transmission Provider and the Transmission Customer with respect
to Transmission Service thereunder.
8.0 Power Supply Obligations
The Transmission Provider shall not be obligated to supply
capacity and energy from its own sources or from its purchases from
other neighboring systems during Interruptions or Curtailments in
the delivery by the Transmission Provider or delivery to the
Transmission Provider by the Delivering Party of capacity and energy
for Transmission Service hereunder, and nothing in the Service
Agreement or in the Transmission Customer's agreements with others
shall have the effect of making, nor shall anything in the Service
Agreement or said agreements with others be construed to require the
Transmission Provider to take any action which would make the
Transmission Provider, directly or indirectly, a source of power
supply to the Transmission Customer, to any Delivering Party or
Receiving Party, or to any ultimate recipient other than through the
provision of Operating Reserve Service.
9.0 Federal Law
Performance under the Tariff and Service Agreement shall be
governed by applicable Federal law.
10.0 Continuing Obligations
The applicable provisions of the Service Agreement will continue
in effect after termination of the Service Agreement to the extent
necessary to provide for final billing, billing adjustments and
payments, and with respect to liability and indemnification from
acts or events that occurred while this Service Agreement was in
effect.
11.0 Net Billing
As mutually agreed in the Service Agreement, payments due the
Transmission Provider by a Transmission Customer may be offset
against payments due the Transmission Customer by the Transmission
Provider for the use of transmission facilities, operation and
maintenance of electric facilities, and other services. For services
included in net billing procedures, payments due one Party in any
month shall be offset against payments due the other Party in such
month, and the resulting net balance shall be paid to the Party in
whose favor such balance exists. The Parties shall exchange such
reports and information that either Party requires for billing
purposes. Net billing shall not be used for any amounts due which
are in dispute.
12.0 Bill Crediting
As mutually agreed in the Service Agreement, payments due the
Transmission Provider by a Transmission Customer shall be paid by a
Transmission Customer to a third party when so directed by the
[[Page 558]]
Transmission Provider. Any third party designated to receive payment
in lieu of the Transmission Provider, and the amount to be paid to
that party, will be so identified in writing to a Transmission
Customer with the monthly power bill. The payment to the third party
shall be due and payable by the payment due date specified on the
Transmission Provider's bill. When remitting payment to a designated
third party, a Transmission Customer shall indicate that such
payment is being made on behalf of the Transmission Provider. The
Transmission Provider shall credit a Transmission Customer for the
amount paid as if payment had been made directly to the Transmission
Provider. All other payment provisions shall remain in full force
and effect.
Attachment K
Authorities and Obligations
Western Area Power Administration (Western) was established on
December 21, 1977, pursuant to Section 302 of the Department of
Energy (DOE) Organization Act, Public Law 95-91, dated August 4,
1977. By law, the Bureau of Reclamation provides Federal power
resources to its project use customers. By law, Western markets
Federal power resources to its electric service customers. Western's
transmission system was built primarily to enable the delivery of
Federal power to satisfy these contractual obligations.
Western is not a public utility under Sections 205 and 206 of
the Federal Power Act and is not specifically subject to the
requirements of the Federal Energy Regulatory Commission's (FERC or
Commission) Final Orders No. 888 and 888-A. Western is a
transmitting utility subject to Section 211 of the Federal Power Act
as amended by the Energy Policy Act of 1992. The Department of
Energy has issued a Power Marketing Administration Open Access
Transmission Policy that supports the intent of the FERC Notice of
Proposed Rulemaking for Open Access Transmission.
Use of transmission facilities that Western owns, operates, or
to which it has contract rights for delivery of Federal long-term
firm capacity and energy to project use and electric service
customers is a Western responsibility under the terms and conditions
of marketing criteria and electric service contracts implementing
statutory obligations to market Federal power. This is complementary
with the provisions of the Tariff. Transmission service provided by
Western under the Tariff is solely for the use of available
transmission capability in excess of the capability Western requires
for the delivery of long-term firm capacity and energy to project
use and electric service customers of the Federal government.
Western will offer to provide others transmission service equivalent
to the service Western provides itself.
Western's Regional Offices reserved transmission capacity shall,
therefore, include capacity sufficient to deliver Federal power
resources to customers of the Federal government. Nothing in this
Tariff shall alter, amend or abridge the statutory or contractual
obligations of Western to market and deliver Federal power resources
and to repay the Federal investment in such projects. The Tariff
provides for transmission, including each Regional Office's use of
those facilities for third party sales, on the unused capability of
transmission facilities under the jurisdiction or control of each of
Western's Regional Offices not required for the delivery of long
term firm capacity and energy to customers of the Federal government
in a manner consistent with the spirit and intent of FERC Order Nos.
888 and 888-A.
Western has prepared this Tariff and service agreements to
provide transmission service comparable to that required of public
utilities by FERC Order Nos. 888 and 888-A, and to implement those
Orders consistent with the DOE Policy. An entity desiring
transmission service from Western must comply with the application
procedures outlined herein. The review and approval requirements
detailed herein will apply to all requesting parties. Western will
perform the necessary studies or assessments for evaluating requests
for transmission service as set forth in the Tariff. Any facility
construction or interconnection necessary to provide transmission
service will be subject to Western's General Requirements for
Interconnection which are available upon request.
Western will provide Firm and Non-Firm Point-to-Point
Transmission Service and Network Integration Transmission Service
under this Tariff. The specific terms and conditions for providing
transmission service to a customer will be included in a Service
Agreement. Operating Procedures, Available Transmission Capability
(ATC), and System Impact Methodology are defined in the Attachments.
Western's rates are developed under separate public processes
pursuant to applicable Federal law and regulations. Therefore, rates
and charges for specific services will be set forth in the
appropriate Regional rates schedules attached to each Service
Agreement.
Western has marketed the maximum practical amount of power from
each of its projects, leaving little or no flexibility for provision
of additional power services. Changes in water conditions frequently
affect the ability of hydroelectric projects to meet obligations on
a short term basis. The unique characteristics of the hydro
resource, Western's marketing plans and the limitations of the
resource due to changing water conditions limit Western's ability to
provide generation-related services including ancillary services and
redispatching using Federal hydro resources.
Western operates in 15 Central and Western States encompassing a
geographic area of 3.38 million-square-kilometers (1.3 million-
square-miles). Western has four Customer Service Regional Offices
and the Colorado River Storage Project Customer Service Center, each
referred to in the Tariff as Regional Office. The addresses for
submitting applications to Western's Regional Offices are as
follows: Colorado River Storage Project, CRSP Manager, P.O. Box
11606, Salt Lake City, UT, 84147-0606, telephone number (801) 524-
6372; Desert Southwest Region, Power Marketing Manager, P.O. Box
6457, Phoenix, AZ, 95005-6457, telephone number (602) 352-2789;
Rocky Mountain Region, Power Marketing Manager, P.O. Box 3700,
Loveland, CO, 80539-3003, telephone number (970) 490-7370; Sierra
Nevada Region, Power Marketing Manager, 114 Parkshore Drive, Folsom,
CA, 95630-4710, telephone number (916) 353-4421; Upper Great Plains
Region, Power Marketing Manager, P.O. Box 35800, Billings, MT,
59107-5800, telephone number (406) 247-7394.
Colorado River Storage Project Customer Service Center
The Colorado River Storage Project Customer Service Center (CRSP
CSC), located in Salt Lake City, Utah, markets power from three
Federal multipurpose water development projects; the Colorado River
Storage Project (CRSP), the Collbran Project, and the Rio Grande
Project, collectively called the Integrated Projects. The
hydroelectric facilities associated with these projects include:
Flaming Gorge and Fontenelle powerplants on the Green River; Blue
Mesa, Morrow Point, and Crystal powerplants on the Gunnison River;
Upper and Lower Molina powerplants of the Collbran Project in
Western Colorado; the largest of the CRSP facilities, Glen Canyon
power plant on the Colorado River; and Elephant Butte power plant,
part of the Rio Grande Project on the Rio Grande River in South
Central New Mexico. The CRSP transmission system consists of high-
voltage transmission lines and attendant facilities extending from
Arizona, into New Mexico, through Colorado, and into portions of
Utah and Wyoming. The CRSP CSC uses the CRSP transmission system to
meet its commitments to its federal customers, point-to-point
transmission customers, and exchange power contractors. The CRSP CSC
must, therefore, reserve sufficient transmission capacity to meet
these long-term obligations. The CRSP CSC also needs to reserve
capacity in its transmission system to enable it to deliver power
produced by the Integrated Projects hydroelectric powerplants during
periods when flood control water releases produce greater than
normal generation levels.
The CRSP CSC office, located in Salt Lake City, is a member of
the Western Regional Transmission Group and Southwest Regional
Transmission Group and operates within the Western Systems
Coordinating Council (WSCC).
The CRSP CSC does not operate a control area and as such may be
unable to provide some or all of the services under the Tariff from
its Integrated Projects hydroelectric resources, including, but not
limited to, ancillary services and Network Integration Transmission
Service.
The CRSP CSC application processing fee will be $1,600.
Desert Southwest Region
The Desert Southwest Region (DSR) manages transmission
facilities in the states of Arizona, California, and Nevada. The DSR
transmission facilities are interconnected with transmission
facilities of several non-Federal entities. DSR is a member of the
Southwest Regional Transmission Group and the Western Regional
Transmission Group
[[Page 559]]
and its system is operated in the WSCC. For the purpose of
implementing this Tariff the transmission facilities of the Parker-
Davis Projects and the Pacific Northwest-Pacific Southwest Intertie
Project will be utilized. DSR manages a control area operations
center through its Desert Southwest Regional Office located in
Phoenix, Arizona.
The DSR application processing fee will be $1,700.
Rocky Mountain Region
The Rocky Mountain Region (RMR) manages transmission facilities
in the states of Colorado, Wyoming, Nebraska, and Kansas which were
constructed for the primary purpose of marketing power from the
Pick-Sloan Missouri Basin Program--Western Division. The RMR office
and control area operations center is located in Loveland, Colorado.
The RMR is a member of the Western Regional Transmission Group and
its system is operated in the Western Systems Coordinating Council.
For RMR, the rates for Point-to-Point and Network Integration
Transmission Service charged pursuant to the Tariff will be
calculated using the costs of the transmission facilities of the
Pick-Sloan Missouri Basin Program--Western Division. The rates for
the ancillary services will be calculated using the costs of the
generation facilities of the Pick-Sloan Missouri Basin Program--
Western Division and the Fryingpan--Arkansas Project.
The RMR application processing fee will be $1,600.
Sierra Nevada Region
The Sierra Nevada Customer Service Region (SNR), located in
Folsom, California, manages the Central Valley Project (CVP)
transmission facilities in the state of California. These facilities
were constructed for the primary purpose of marketing power
resources from the CVP. SNR also has ownership rights to capacity in
two multi-party transmission systems, the Pacific Northwest-Pacific
Southwest Intertie Project (Pacific AC Intertie), and the
California-Oregon Transmission Project (COTP). Congress authorized
SNR's participation in the Pacific AC Intertie for the purpose of
importing power from the Pacific Northwest. COTP rights were
acquired pursuant to Public Law 98-630, primarily for the purpose of
delivering power to the United States Department of Energy
Laboratories (DOE Labs) and Federal Fish and Wildlife refuges. Long-
term use of the Pacific AC Intertie and COTP by third parties is
restricted under existing contracts. SNR is a member of the Western
Regional Transmission Group regional transmission group and operates
within the Western Systems Coordinating Council reliability council.
The SNR does not operate a control area and as such may be
unable to provide some or all of the services under the Tariff,
including but not limited to, ancillary services and Network
Integration Transmission Service.
The SNR application processing fee will be $1,300.
Upper Great Plains Region
The Upper Great Plains Region (UGPR) manages transmission
facilities in the states of Montana, North Dakota, South Dakota,
Nebraska, Minnesota, and Iowa which were constructed for the primary
purpose of marketing power from the Pick-Sloan Missouri Basin
Program--Eastern Division. The UGPR office is located in Billings,
Montana. The UGPR manages a control area operations center in
Watertown, South Dakota. The eastern portion of the UGPR system is
operated in the Mid-Continent Area Power Pool (MAPP) reliability
council. The western portion of the system is operated in the
Western Systems Coordinating Council.
The UGPR transmission facilities are integrated with the
transmission facilities of Basin Electric Power Cooperative (Basin)
and Heartland Consumers Power District (Heartland) such that
transmission services are provided over an integrated transmission
system. UGPR rates for Point-to-Point and Network Integration
Transmission Service charged pursuant to the Tariff will be
calculated using the costs of the transmission facilities of UGPR,
Basin, and Heartland that are included in the Transmission System.
This Transmission System is also called the Integrated System (IS)
and the rates are identified as IS Rates. The integration of these
facilities as the IS and the use of the IS rates for short-term
sales have been approved by the Administrator of Western. The
definition of the Transmission System and the rates for Point-To-
Point and Network Integration Transmission Service may be subject to
change upon conclusion of an Open Access Transmission Service rate
development process conducted pursuant to applicable Federal Law and
regulations.
Both Basin and Heartland also own generating facilities and must
commit to deliver the output of those resources to their respective
members. Basin and Heartland will, therefore, reserve sufficient
capacity in their transmission facilities to deliver that output.
Any Transmission Customer taking service under this Tariff shall
be subject to a Stranded Cost Charge payable to either UGPR, Basin
or Heartland if such service is used for the transmission of power
or energy that replaces wholly or in part, power or energy supplied
by Western, Basin or Heartland respectively.
The Stranded Cost Charge of Basin shall be applicable regardless
of whether the transmission relates to power and/or energy that is
purchased by or on behalf of a Generation and Transmission
Cooperative member of Basin (G&T), a Distribution Cooperative member
of Basin or G&T, or a retail customer of a Distribution Cooperative
member of Basin or a G&T.
The Stranded Cost Charge of Heartland shall be applicable
whether the transmission service relates to power and/or energy that
is purchased by or on behalf of a municipal customer of Heartland or
a retail customer of a municipal customer of Heartland.
Stranded costs will be recovered only from a Transmission
Customer who obtains transmission service under access rights
granted through the Transmission Provider's compliance tariff
developed pursuant to FERC Final Orders No. 888 and 888-A and causes
either UGPR, Basin or Heartland to incur stranded costs. Stranded
costs will be recovered through the terms and conditions of a
separate contract entered into either by UGPR and the Transmission
Customer or Basin and the Transmission Customer or Heartland and the
Transmission Customer.
The UGPR application processing fee will be $1,700.
[FR Doc. 98-128 Filed 1-5-98; 8:45am]
BILLING CODE 6450-01-P
