[Federal Register Volume 60, Number 245 (Thursday, December 21, 1995)]
[Proposed Rules]
[Pages 66182-66203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30884]
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DEPARTMENT OF ENERGY
Federal Energy Rregulatory Commission
18 CFR Part 37
[Docket No. RM95-9-000]
Real-Time Information Networks and Standards of Conduct; Notice
of Proposed Rulemaking
December 13, 1995
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of Proposed Rulemaking.
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[[Page 66183]]
SUMMARY: The Federal Energy Regulatory Commission proposes to amend its
regulations to add Part 37 containing rules establishing and governing
real-time information networks (RINs) and prescribing standards of
conduct. Under this proposal, each public utility (or its agent) that
owns and/or controls facilities used for the transmission of electric
energy in interstate commerce would be required to create and/or
participate in a RIN that would provide wholesale transmission
customers and potential wholesale transmission customers with
electronically provided information on available wholesale transmission
capacity, prices, and other information that will enable them to obtain
open access non-discriminatory transmission service.
DATES: Written comments (an original and 14 paper copies and one copy
on a computer diskette) must be received by the Commission by February
5, 1996.
ADDRESSES: Office of the Secretary, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT:
Marvin Rosenberg (Technical Information), Office of Economic Policy,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426 (202) 208-1283
William C. Booth (Technical Information), Office of Electric Power
Regulation, Federal Energy Regulatory Commission, 888 First Street, NE.
, Washington, DC 20426 (202) 208-0849
Gary D. Cohen (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE. ,
Washington, DC 20426 (202) 208-0321
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission also provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours in the Public Reference Room
at 888 First Street, NE., Washington, DC 20426.
The Commission Issuance Posting System (CIPS), an electronic
bulletin board service, provides access to the texts of formal
documents issued by the Commission. CIPS is available at no charge to
the user and may be accessed using a personal computer with a modem by
dialing 202-208-1397 if dialing locally or 1-800-856-3920 if dialing
long distance. To access CIPS, set your communications software to
19200, 14400, 12000, 9600, 7200, 4800, 2400, or 1200 bps, full duplex,
no parity, 8 data bits and 1 stop bit. The full text of this order will
be available on CIPS indefinitely in ASCII and Wordperfect 5.1 format.
The complete text on diskette in WordPerfect format may also be
purchased from the Commission's copy contractor, La Dorn Systems
Corporation, also located in the Public Reference Room at 888 First
Street, NE., Washington, DC 20426.
Real-time Information Networks and Standards of Conduct, Docket
No. RM95-9-000, Notice of Proposed Rulemaking Table of Contents.
I. Introduction
II. Public Reporting Burden
III. Discussion
A. Background
B. Overview
C. What Types of Information Need to Be Posted on a RIN
1. Summary of the ``What'' Working Group Report
a. Introduction
b. Scope and Definitions
c. Posting Transaction Information
2. Discussion
a. RIN Objectives
b. ATC for Network Integration Service
c. ATC Calculation Methodology
d. Provisions for Unscheduled Flows
e. Paths for which ATC is not Posted
f. Differences in ATCs
g. Format for Transmission Tariffs
h. Posting Requirements for Recallability and Curtailability
i. Communicating Curtailments and Denials of Requests for
Service
j. Posting Information about Ancillary Services
k. Must Transmission Customers Resell Unused Capability?
l. Posting Information about Resales
m. Mechanism for Discounting Transmission Service Rates
n. Discussion of Generation Information Related to Redispatch/
Opportunity Costs
o. Discussion of Providing Additional Information Beyond ATC
p. Requested Start and End Times/Dates
q. Transaction Anonymity
r. Auditing Transmission Service Information
D. Technical Issues Concerning the Development and
Implementation of RINS
1. Summary of the ``How'' Working Group Report
a. Phase I Recommendations
b. Phase II Requirements
2. Discussion
a. Phasing
b. Standards Issues
i. Phase I Data Definitions for HTML Pages and File Transfers
ii. Internet Browsers
iii. Bandwidth of Node Connections to the Internet
iv. Common Codes
v. Data Compression Standards
vi. Templates for Upload and Download Header Information
c. Costs
d. Access to RIN Information by the Public
e. The Number of RIN Nodes
f. Connections to Third Party Networks
g. Unresolved Issues
i. Price Discrimination Issues
ii. Transmission Services Information Timing Requirements
iii.The Posting of Capacity Available for Resale
E. Standards of Conduct
F. Applicability
1. Non-Public Utility Transmission Providers
2. Public Utilities having no Transmission Facilities with
Commercial Value
IV. Regulatory Flexibility Act
V. Environmental Statement
VI. Information Collection Statement
VII. Public Comment Procedure
Regulatory Text
Attachment 1
I. Introduction
The Federal Energy Regulatory Commission (Commission) proposes to
amend 18 CFR to add Part 37 containing rules establishing and governing
real-time information networks (RINs) and standards of conduct. We are
issuing this notice of proposed rulemaking in conjunction with our
previously proposed Open Access rule.1
\1\ See Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Public Utilities and
Recovery of Stranded Costs by Public Utilities and Transmitting
Utilities, Notice and Supplemental Notice of Proposed Rulemaking, 60
FR 17662 (April 7, 1995), IV FERC Stats. & Regs. para. 32,514 (March
29, 1995) (hereinafter Open Access NOPR).
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Under the proposed Open Access rule, public utilities that own and/
or control facilities used for the transmission of electric energy in
interstate commerce would be required to provide open access, non-
discriminatory wholesale transmission services. To ensure non-
discriminatory service, the proposed Open Access rule requires the
functional unbundling of wholesale services. A public utility's uses of
its own transmission system for the purpose of engaging in wholesale
sales and purchases of electric energy must be separated from other
activities and transmission services (including ancillary services)
must be taken under filed transmission tariffs of general
applicability.
To ensure this separation of service, the public utility must
provide customers with timely access to transmission-related
information. As we stated in the Open Access NOPR, ``functional
unbundling means that the public utility, in order to provide non-
discriminatory open access to transmission and ancillary services
information, must rely upon the same electronic network that its
transmission customers rely upon to obtain transmission information
about its
[[Page 66184]]
system when buying or selling power.'' 2 The rule we propose today
is designed to begin the process of achieving this objective.
\2\ Open Access NOPR at pp. 95-96.
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Under the proposed rule, each public utility as defined in section
201(e) of the Federal Power Act, 16 U.S.C. 824(e) (1994), (or its
agent) that owns and/or controls facilities used for the transmission
of electric energy in interstate commerce would be required to develop
and/or participate in a RIN. The proposed regulations, relying heavily
on work already done by representatives of all segments of the electric
power industry, describe what information must be provided on the RIN
and how RINs are to be implemented and used.
The Commission also proposes a code of conduct that would apply to
all public utility transmission providers. This code of conduct would
require, among other matters, a separation of the utilities'
transmission system operations and wholesale marketing functions, and
would define permissible and impermissible contacts between employees
that conduct wholesale generation marketing functions and employees
that handle transmission system operations and reliability in the
system control center or at other facilities or locations.
Within 60 days of publication of a final rule in the Federal
Register, public utilities would be required to file with the
Commission procedures that would enable customers and the Commission to
determine that public utilities are in compliance with the RINs and
code of conduct requirements.
II. Public Reporting Burden
The proposed rule would require transmission providers to establish
and/or participate in a RIN, which would provide wholesale transmission
users and potential wholesale transmission users with information by
electronic means about transmission capacity and prices.
The following collection of information contained in this Notice of
Proposed Rulemaking has been submitted to the Office of Management and
Budget for review under section 3507(d) of the Paperwork Reduction Act
of 1995, 44 U.S.C. 3507(d). For copies of the OMB submission, contact
Michael Miller at 202-208-1415. Comments are solicited on the
Commission's need for this information, whether the information will
have practical utility, the accuracy of the provided burden estimates,
ways to enhance the quality, utility, and clarity of the information to
be collected, and any suggested methods for minimizing respondents'
burden, including the use of automated information techniques. Persons
wishing to comment on the collections of information should direct
their comments to the Desk Officer FERC, Office of Management and
Budget, Room 3019NEOB, Washington, D.C. 20503, phone 202-395-3087,
facsimile: 202-395-7285 or via the Internet at hillier__t@a1.eop.gov.
Comments must be filed with the Office of Management and Budget within
60 days of publication of this document in the Federal Register. 3
A copy of any comments filed with the Office of Management and Budget
also should be sent to the following address at the Commission: Federal
Energy Regulatory Commission, Information Services Division, Room 41-
l7, Washington, DC 20426. For further information, contact Michael
Miller, 202-208-1415.
\3\ Although the full text of this document and Attachment 1
will be published in the Federal Register, the three appendices
attached to this document (Appendix ``A''--the report of the
``what'' working group, Appendix ``B''--the report of the ``how''
working group, and Appendix ``C''--templates for upload and download
of files and HTML displays) will not. The complete NOPR, including
these appendices, is available for inspection and copying in the
Commission's Public Reference Room and is accessible through the
Commission Issuance Posting System (CIPS), an electronic bulletin
board service providing access to Commission documents.
Estimated Annual Burden
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Total
Data Collection No. of No. of Hours per annual
Respondents Responses Response hours
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Reporting........................................................ 84 1 8352 701,568
Recordkeeping.................................................... 84 1 1670 140,280
Total Annual Hours for Collection (Reporting + Recordkeeping, (if
appropriate))=841,848...........................................
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Data collection costs: The Commission seeks comments on the costs
to comply with these requirements. It has projected the average
annualized cost per respondent to be the following:
Annualized Capital/Startup Costs............................. $190,000
Annualized Costs (Operations & Maintenance).................. $620,000
Total Annualized Costs..................................... $810,000
Internal Review
The Commission has reviewed the proposed collection of information
and has determined that the collection of information is necessary and
conforms to the Commission's plan, as described in this notice of
proposed rulemaking, for the collection, efficient management, and use
of the required information. The Commission has assured itself, by
means of its internal review, that there is specific, objective support
for the information burden estimate set forth above.4
\4\ See 44 U.S.C. 3506 (c).
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III. Discussion
A. Background
On March 29, 1995, the Commission issued the Open Access NOPR
(referenced above). In the Open Access NOPR, the Commission proposed
rules that would require public utilities that own and/or control
facilities used for the transmission of electric energy in interstate
commerce to provide wholesale customers with transmission services
comparable to those that they provide to themselves. The goal of the
Open Access NOPR is to eliminate unduly discriminatory practices in the
provision of wholesale transmission services in interstate commerce,
and to facilitate the development of a competitive bulk power market.
The Open Access NOPR includes minimum terms and conditions that a
public utility would have to include in its wholesale transmission
tariffs, the types of transmission and related ancillary services it
must offer to its customers, and a requirement that each public utility
purchase wholesale transmission services for its new wholesale sales
and purchases under the same transmission tariffs applicable to its
wholesale customers. The Open Access NOPR also proposes that public
utilities be allowed to recover certain
[[Page 66185]]
legitimate and verifiable stranded costs associated with certain
requirements contracts entered into prior to July 11, 1994.
We do not believe that open access non-discriminatory transmission
services can be completely realized until we remove real-world
obstacles that prevent transmission customers from competing
effectively with the Transmission Provider. One of these obstacles is
unequal access to transmission information. In the Commission's view,
transmission customers must have simultaneous access to the same
information available to the Transmission Provider if truly non-
discriminatory transmission services are to be a reality.
For this reason, when we issued the Open Access NOPR we also issued
a notice of technical conference and request for comments (RIN Notice)
that initiated this proceeding.5 In the RIN Notice, the Commission
announced that we were considering establishing RIN rules to effectuate
the non-discrimination goals of the Open Access NOPR, and that we
expected to require a RIN or other options to ensure that potential and
actual transmission service customers will receive access to
information.6
\5\ Real-Time Information Networks, 60 FR 17726 (April 7, 1995),
IV FERC Stats. & Regs. para. 35,028 (March 29, 1995).
\6\ In the RIN Notice, we chose the term ``Real-Time Information
Network'' to describe the electronic information system envisioned
by that notice. We chose that term because we wanted to distinguish
the RIN from the electronic bulletin board (EBB) rules developed for
the natural gas industry and because we wanted to emphasize that
information would not be distributed to different users at different
times. However, we did not mean to suggest that transmission
providers would be precluded from taking adequate time to evaluate
requests for service before responding to them. Perhaps a more
precise term would have been a same-time information network.
In the two working group reports (discussed below) we are urged
to change the name ``RIN'' to ``electronic information network'', by
the ``what'' working group, and to ``transmission services
information network'', by the ``how'' working group. Either of these
designations would be equally acceptable. In the meantime, however,
we are retaining the title ``RIN'' to make clear that this NOPR is
proposing rules consistent with the ideas expressed in the RIN
Notice.
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The Commission also announced its goal to establish uniform
requirements for a RIN or other communications device at the same time
that it adopts a rule requiring open access non-discriminatory
transmission services. To accomplish this objective, the Commission
invited interested persons to file comments and to participate in a
technical conference, where they could make presentations on their
positions. As a starting point, the Commission attached to the RIN
Notice a Commission Staff paper identifying various RIN-related issues,
and directed commenters to respond to the specific issues identified in
the Staff paper and to provide their general comments on the RIN
concept. The RIN Notice stated that the Commission expected to hold
informal conferences, enlisting working groups to discuss any remaining
issues, and that input from the technical conference and informal
conferences would be the basis for subsequent procedures. The RIN
Notice set a timetable to be followed, so that RIN requirements could
be in place no later than the effective date of a final rule on open
access.
Question 1. We seek comment on whether to continue to call the
information network a ``RIN'' and, if not, what name should be used
in its place.
In response to the RIN Notice, Kansas City Power & Light Company
and Continental Power Exchange, Inc. sponsored a forum on EBBs held on
March 31, 1995 in Kansas City. That forum was attended by more than 50
representatives of the 17 entities with open access filings (at that
time) at the Commission, along with state regulators from Kansas and
Missouri, and the Edison Electric Institute (EEI). A follow-up workshop
on EBBs and RINs, sponsored by EEI, was held in Kansas City on April
19, 1995, and was attended by more than 150 people from all segments of
the electric industry.
The North American Electric Reliability Council (NERC) and its nine
regional councils offered to act as sponsor and neutral facilitator for
the electric industry regarding electronic information systems to:
Determine the information requirements of transmission
users;
Develop industry wide standards for reporting and using
this information;
Ensure that any information systems developed can build
upon and be compatible with existing information systems in the
industry; and
Meet the Commission's goal of ensuring that potential
purchasers of transmission services would receive access to
information to enable them to obtain open access transmission
service on a non-discriminatory basis.
The EEI workshop participants accepted NERC's offer to facilitate
industry discussions on RINs. They also decided that, rather than
awaiting Commission-drafted standards, they would try to develop an
industry wide consensus, for submittal to the Commission, that would
ensure fair and equal participation by both transmission customers and
transmission providers and that would define the necessary information
requirements and standards for a RIN.
Accordingly, on May 3-4, 1995, NERC called together a sub-group of
workshop participants, representing all categories of transmission
users and providers, to draft a model or ``straw man'' document that
would outline a preliminary list of minimum information requirements
for transmission users (i.e., what information should be included on a
RIN) and to reach agreement on what would constitute a fair and
inclusive process for reaching consensus among transmission user groups
on information requirements for a RIN. The resulting consensus document
(Strawman 1) set the agenda for subsequent discussions at five regional
workshops, held across the country, with participation by over 500
individuals from all segments of the electric power industry. The
strawman group issued a revised document (Strawman 2), on June 2, 1995,
based on those discussions. Strawman 2 was distributed to the
participants in the regional workshops and to Commission Staff and
served as the discussion point for a NERC-sponsored workshop held in
Washington, DC on June 26-28, 1995. Although participants at this
workshop were not able to reach consensus on numerous issues, they were
able to identify the important unresolved issues and where efforts
would need to be made to reach consensus.
Other groups also got involved early on with RIN-related issues.
For example, the Western Group 7 began working in February 1995
(prior to issuance of the RIN Notice) on standards for the electronic
information systems needed for implementation of comparable
transmission service. WRTA members were joined in their discussions by
members of the Southwest Regional Transmission Association (SWRTA), and
the Northwest Regional Transmission Association (NWRTA). Together,
WRTA, SWRTA, and NWRTA held a series of informal workshops to discuss
tariff issues. Representatives of the Western Group also attended the
April 19, 1995 meeting sponsored by EEI on national RIN standards and
participated in the NERC process.
\7\ This group is composed of 17 major transmitting utilities, 3
non-utility suppliers, 10 transmission dependent utilities (or
groups of utilities), and two state commissions, all located in the
western United States and western Canada (the geographic area
covered by the interconnected systems of the Western Systems
Coordinating Council).
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In all, 108 sets of comments were submitted to the Commission in
response to the RIN Notice. Although the comments were nearly uniformly
favorable to the RIN concept, the
[[Page 66186]]
comments exposed many disagreements about what information should be
contained on a RIN, what kind of a RIN system or systems should be
required, what transactions should be covered, how terms should be
defined, etc. However, most commenters understood that access to
transmission information--by all parties at the same time--is essential
to ensuring non-discriminatory open access transmission services.
The comments led to a technical conference on RINs (Technical
Conference) held in Washington, DC on July 27 and 28, 1995. Panels at
the Technical Conference discussed the status of industry efforts to
date, industry standards for information systems, what information is
needed on a RIN, how a RIN should be structured, what issues need to be
resolved, and what steps should be taken next. In addition,
demonstrations were presented on different transmission information
systems and energy trading systems.
The participants in the July 27, 1995 conference agreed that the
NERC-sponsored process, seeking to reach consensus and make
recommendations to the Commission on what information should be
included on a RIN, should continue, with NERC acting as a facilitator
to promote participants reaching consensus and to prepare a ``what''
report to the Commission describing areas of consensus and non-
consensus. The participants also agreed that another industry-sponsored
working group should be created, with the Electric Power Research
Institute (EPRI) acting as a facilitator to promote consensus on
``how'' to implement a system that would accomplish these objectives,
and to prepare a ``how'' report to the Commission.
The NERC and EPRI representatives pledged to conduct an open
process that would keep all interested persons informed of developments
by the working groups and that would provide input from interested
persons to working group members. Interested persons also were invited
to attend open workshops sponsored by both working groups.
The ``what'' industry working group consisted of 26 members
providing balanced representation from all segments of the electric
power industry and included liaisons from the Commission, the ``how''
working group, NARUC, and Canadian utilities. Major industry trade
groups sent observers. On October 9, 1995, the ``what'' working group
made a draft report available for public review. On October 16, 1995,
it submitted a final report to the Commission.
Following the Technical Conference, the ``how'' working group used
a similar open and representative process that included participation
by all industry and customer segments. On October 16, 1995, the ``how''
working group submitted to the Commission its report on how a RIN
should be implemented.
The two working group reports address both the issues on which the
participants were able to reach consensus and the issues on which no
consensus was reached. Additionally, nine sets of comments were filed
by working group participants who wished to provide a fuller
explanation of their views on particular issues. We will address the
issues raised by the working group reports below.
B. Overview
In what follows we discuss first, in section C below, what types of
information must be posted on the RIN. The Commission proposes to adopt
most of the technical parameters agreed to by the ``what'' working
group. Our final rule would include general regulations governing who
must develop and maintain RINs and what information must be posted on
the RIN. Next, in section D below, we discuss the technical issues
surrounding the implementation and use of RINs. We propose to set out
the details of these requirements in a publication that would be
entitled Standardized Data Sets and Communication Protocols and that
would be issued as part of our final RIN rule. We propose to implement
the RINS in two phases, with the first phase (Phase I) being completed
when the Open Access rule goes into effect. In the discussion below, we
address the specific, and at times very technical, issues considered
respectively by the ``what'' and ``how'' working groups.
In section E below, we consider proposed standards of conduct
governing the separation of transmission and generation functions.
These standards are, we believe, a necessary adjunct to the RINs to
ensure non-discriminatory access. The proposed standards are drawn from
those that have been developed in our regulation of the natural gas
industry. Last, in section F, we discuss issues of applicability for
the proposed RINS and standards of conduct.
In setting out proposed requirements for implementing RINs, our
primary objective is to establish regulations that ensure the
accessibility of all information necessary to the full and fair
implementation of the requirements of the Open Access NOPR. The
problem, of course, is that we do not now know the specifics of the
final Open Access rule. Yet, the information that will be required to
be posted depends upon what is required or permitted under the final
Open Access rule. For example, what must be posted on the RIN regarding
the resale of transmission depends upon whether, in the final Open
Access Rule, resales are permitted and, if so, under what conditions.
Similarly, what information must be posted regarding transmission
pricing discounting will depend upon whether, in the final Open Access
Rule, discounting is permitted and, if so, under what conditions. These
are just two examples, and are not inclusive, of RINs information that
may change depending on what is in the final open access rule.
The final RIN rule will be designed to accommodate whatever final
open access rules the Commission adopts and whatever industry
structures evolve to meet those rules. In the interim, the RIN proposal
follows the Proposed Open Access Rule. For example, it assumes that
resales will be permitted 8 Similarly, the proposed RIN standards
are designed to accommodate the so called ``contract path'' approach
presently used in today's electricity markets. However, the Commission
is open to other approaches that may develop in the future under an
Open Access regime. Consequently, commenters should consider how the
proposed RINS and standards of conduct regulations can be designed to
meet these needs.
\8\ In designing proposed RINs regulations dealing with what may
be required in the Final Open Access rule, our assumptions should in
no way be taken as prejudging the various issues involved in the
Open Access rulemaking.
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Question 2. What issues associated with RIN standards would have
to be addressed if in an open access transmission environment the
electric power industry moves to regional pricing, flow-based
pricing, or other pricing models that depart from the ``contract
path'' approach presently used for pricing electric transmission
service? How in structuring RIN standards can the Commission provide
for this contingency?
C. What Types of Information Need To Be Posted on a RIN
1. Summary of the ``What'' Working Group Report
The ``what'' working group report (What Report), represents a broad
consensus of all segments of the electric utility industry. It
summarizes the functional requirements for Real-Time Information
Networks to facilitate open access to the transmission system.
[[Page 66187]]
a. Introduction
The What Report starts with a number of general assumptions and
definitions. They include phasing of RIN implementation (Phases I and
II), functional separation, accessibility to the RIN and definitions
for ``transmission provider'', ``transmission customer'', and
``transmission provider's tariff.'' The What Report for the most part
only addresses recommended Phase I requirements.
The What Report states that the RIN will include viewing tools
enabling equivalent, basic access to the data base for all RIN users.
However, many users will desire to customize their access to the data
base and have the information presented in a variety of ways tailored
to their individual needs. The RIN itself will not seek to satisfy this
need. Instead, private software developers will be permitted and
encouraged to develop and market customized viewing tools for the RIN.
The What Report lists five objectives of the RIN which are
discussed in section C.2.(a) below. It recommends that, at least
initially, the RIN be used as a transmission service reservation
system, and not as a transmission scheduling system. Scheduling
involves actually implementing a service on control area computers.
Thus, the RIN is separate from system operations, and system
reliability is handled separately. The decision to include transmission
service scheduling on the RIN is left to later development.
Finally, the report discusses the requirement that information
posted on the RIN will be date and time stamped and automatically
stored in downloadable log files so that audits can be performed as
required.
b. Scope and Definitions
The second section of the report deals with scope and definitions.
The What Report makes a distinction between ``near-term'' and ``far-
term'' transmission service requests. ``Near-term'' requests can be
responded to quickly without additional work. ``Far-term'' requests
require off-line studies to determine if the request for service can be
accommodated.
The What Report also states that it does not seem possible to post
availability for Network Integration Service Transmission on the RIN.
Therefore, only the available transmission capability (ATC) for point-
to-point transmission service would be posted on the RIN.
The What Report discusses the concept of ATC and gives some
consideration to calculating it. Although the What Report recognizes
that a consistent methodology is needed, no such methodology is
proposed in the report.
The What Report discusses the concept of ``transmission paths'' for
which ATC is to be reported and provides some guidelines for
calculating ATC. It appears from the discussion in the What Report that
ATC calculations over transmission paths would reflect the impacts of
parallel flows. Although a contract path can be the basis for a
commercial transmission transaction, such a transaction will use a
combination of one or more transmission paths. A transmission path may
be a single path or sequence of contiguous paths that form a continuous
electrical connection. In alternating current systems, electricity will
not flow solely on the contract path, but will flow on the entire
transmission system of the interconnection in accordance with the laws
of physics. Transmission Providers are urged to develop regionally
accepted methods of attributing all contributions of loading to each
transmission path including the effects of the real flow contribution
of all transactions.
A major concern for the ``what'' working group (What Group) is over
potential differences between the ATC posted on the RIN and the
capability actually available when requested. The What Report points
out that ATC calculations are only engineering estimates. There is no
guarantee that they are correct. It states that ``[t]he amount of ATC
posted shall be that amount that the Responsible Party expects, in good
faith, to be available on a specific interface or Path in a specific
direction, based on engineering analysis and other information that is
available to the Responsible Party at the time of the posting.'' 9
Also, conditions may change between the time the ATC is calculated and
when service is requested.
\9\ What Report at 8.
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Under the What Group's proposal, the posting of ATC is not to be
required until a business need arises for a transmission path. ``A
`business need' is signified by a request from a Transmission Customer
concerning information or a reservation on a Path which has the
potential to be constrained.'' 10 The What Report proposes two new
attributes for transmission service to replace the terms ``firm'' and
``non-firm'' that are believed to be causing confusion as to the basic
nature of transmission services. The new attributes are recallability
and curtailability. All transmission service is curtailable.
Curtailment is made only in cases ``where system reliability is
threatened and/or emergency conditions exist.'' 11 Recallability
is ``the right of a Transmission Provider to interrupt all or part of a
transmission service for any reason that is not unduly discriminatory *
* * .'' 12 The What Report states that recallability distinguishes
between firm and non-firm service. According to the What Report, firm
service is not recallable.
\10\ What Report at 10.
\11\ What Report at 15.
\12\ What Report at 14.
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The What Report defines a standard set of attributes for describing
transmission products on the RIN.
The scope and definitions section concludes with discussions of
several areas of non-consensus. The What Group could not agree on the
following: whether and how to post information about ancillary services
on the RIN; whether transmission customers not using transmission
capability that they reserve must make it available to others; whether
to post all discounts or only those provided to affiliates; and whether
generator cost and status information to verify redispatch/opportunity
cost charges must be available on the RIN.
c. Posting Transaction Information
The Posting Transaction Information section discusses four major
types of information that are to be posted on the RIN:
1. Available Transmission Capability Information;
2. Transmission Providers' Product Offerings and Prices;
3. Specific Transmission Service Requests; and
4. Informal Transmission Communications.
The What Report itemizes the information that should be posted in
each of these areas. A table identifies who is responsible for posting
what on the RIN. The What Group was unable to reach consensus on
whether to require the posting of additional information beyond ATC.
Some believe that additional information is needed as a safeguard
against anti-competitive behavior and provides valuable information
about transmission constraints. This information includes the run
status of generators that have a significant impact on ATC, information
about constrained transmission lines, and the identity and status of
facilities causing curtailments. Others believe that this additional
information is unnecessary and burdensome. This
[[Page 66188]]
information also is believed to be commercially sensitive.
A second area of non-consensus was whether individual transmission
requests and responses should be made known only to the Transmission
Customer making the request, the Transmission Provider to whom the
request was made and, to the extent necessary, the affected control
area operators and/or security centers or to all users of the RIN on a
same-time basis. Some argue that this information is commercially
sensitive and should be limited just to the parties in a transaction.
Others believe that full disclosure is important to safeguard against
potential anti-competitive behavior. A compromise was proposed, but not
agreed to, to delay release of this information for a certain time.
2. Discussion
The What Group assumed the task of developing recommended
requirements for the information to be posted on a RIN that would meet
the industry's need for customer access to information about wholesale
transmission services. In the text that follows, we will discuss these
recommendations and will identify those recommendations that at this
stage we reject (as previously noted, further background is provided by
the complete What Report, attached to this NOPR as Appendix ``A''). We
also will discuss certain issues not addressed by the What Group.
a. RIN Objectives
The Commission proposes to modify slightly the five objectives
listed in the What Report. The changes are intended to expand and
better define the objectives. The revised objectives are:
1. Allow Transmission Customers to make requests for
transmission services offered by Transmission Providers and the
secondary market;
2. Allow Transmission Customers to view and download in standard
formats, using standard protocols, necessary information regarding
the transmission system to enable prudent business decision making;
3. Provide a mechanism for posting, viewing, uploading and
downloading of information between customers and providers regarding
available products and desired services;
4. Enable all Transmission Customers to clearly identify the
extent to which their transmission service requests and/or schedules
were denied or curtailed and how their treatment compares to that of
their competitors; and
5. Allow Transmission Customers to access in electronic format
information supporting ATC calculations and historical transmission
service requests and schedules for various audit purposes.
The What Report states that ``[i]n instances where requests are
denied or transactions are curtailed, the RIN should provide a
mechanism for Transmission Providers to communicate to Transmission
Customers (1) the reason those transactions could not be accommodated
and (2) the options, if any, for adjusting operation of the system to
increase transfer capability in order to accommodate those
transactions.'' 13 The Commission wishes to clarify that since
scheduling and the curtailment of schedules will not be done through
the RIN initially, this curtailment information would be for
information purposes only.
\13\ What Report at 6.
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b. ATC for Network Integration Service
The What Report states that it is not possible to post the
availability of Network Integration Service Transmission on a RIN. The
Commission recognizes that before-the-fact measurement of the
availability of network transmission service is difficult. Nonetheless,
the Commission believes that it is important to give potential network
customers an easy-to-understand indicator of service availability
(e.g., in MWs), in addition to power flow data and other studies used
by utilities to support the calculation of ATC.
Question 3. The Commission requests comments on how best to post
the availability of network transmission service on the RIN. Should
Transmission Providers be required to post conservative estimates as
a preliminary matter that could be improved with additional study?
Is there an alternative service concept that is more suitable to
measurement than the current version of network service?
As discussed in section C.2.(o) below, information supporting
``point-to-point'' service ATC calculations is required to be available
for download. This information should help potential network customers
assess the availability of network service capability.
c. ATC Calculation Methodology
The What Group notes that the proposed Open Access rule requires
that the utility ``describe the method used to estimate ATC in
sufficient detail to allow others to do the same analysis.'' 14
However, the proposed Open Access rule does not propose a methodology
for calculating ATC. The What Report contains some useful guidelines
for calculating ATC/Total Transmission Capability (TTC), but does not
present specific methodologies.
\14\ What Report at 121.
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In calculating ATC, public utilities will need to reserve enough
capacity to ensure the reliable operation of the transmission system.
Thus, the Transmission Provider (or its designated agent) will need to
calculate the additional transfer capability that is available without
violating reliability limits. Because of uncertainties in system
conditions and utilities' reliance on interconnections to provide
generation reserves during emergencies, the Transmission Provider must
calculate an appropriate transmission margin. Transmission margin
calculations should be based on the published standards, criteria and
guides, and operating experience of the individual Transmission
Provider (as filed with FERC as part of FERC Form 715 and as filed in
transmission tariffs). These calculations must be consistent with
industry standards, and these standards must be available for review on
the RIN.
The Commission expects that an ATC/TTC calculation methodology can
be developed on a consistent, industry-wide basis and encourages
efforts to do so. We understand that some of the details may need to
differ to reflect regional or utility- specific situations.
Transmission Providers are expected to use prudent utility practice to
determine ATC. The Commission understands that utilities have
historically responded to requests for transmission service using
prudent utility practice to determine if sufficient capacity is
available to accommodate the request. These practices vary by region
and even by utility. Determination of ATC has been made with computer
software with a level of complexity that varies from one Transmission
Provider to another or with simple formulas or graphical tools
(nomograms) created with a mixture of engineering analysis and
engineering judgment. The Commission requires the use of the best tools
for determining ATC available to the Transmission Provider at the time.
Our requirement to provide data and methods on the RIN is to be
understood in this context; it may require, for example, posting of the
nomograms, the data applied to them, a description of the procedure for
applying the data to the nomogram, and an explanation of how the
nomogram is derived.
However, the Transmission Provider must strictly adhere to the
limits imposed by the resulting ATC determination in its own use of
transmission. It must also provide adequate data for the Commission and
other industry participants to monitor
[[Page 66189]]
any potential violations of the ATC limit by the Transmission Provider.
Further, if the Transmission Provider revises its ATC calculation for
any time period, the new availability of transmission capacity must be
posted on the RIN in a manner that allows all transmission customers an
equal opportunity to apply for its use.
The Commission urges Transmission Providers to improve and
coordinate methods of estimating ATC. This will improve the efficiency
of capacity utilization by all parties, including the Transmission
Provider itself, while maintaining system reliability. We expect that
such improved methods and prudent utility practice in the future will
require cooperative regional calculation of ATC by all Transmission
Providers in a region. We believe that all Transmission Providers
should take the same approach to calculating ATC/TTC and use the same
basic methodology.
Question 4. The Commission requests comment on how to develop a
consistent, industry-wide method of calculating ATC/TTC.
d. Provisions for Unscheduled Flows
The What Report states that ``[a]ppropriate provision must be made
to properly account for ``unscheduled flow'' through each Path
resulting from each known transaction.'' 15 This should not be
interpreted as making the requirements in this proposed rulemaking
depend on resolution of this issue.
\15\ What Report at 8.
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e. Paths for Which ATC Is Not Posted
The What Report states that ATC should be posted for paths as
business needs arise. Some Paths are minor ties between utilities or
control areas for which transfer capability calculations have not yet
been performed and on which no constraint is anticipated because of the
lack of commercial activity. A ``business need'' is defined, in part,
by a transmission customer requesting information about a path.
The business need limitation is intended to limit the number of
paths for which ATC must be posted. However, it is not clear that it
does. For example, the Open Access rulemaking proposes that
Transmission Providers must take wholesale transmission service under
their own tariff. This makes them transmission customers. Any wholesale
trade they do over these minor ties would appear to trigger the
``business need'' requirement for ATC posting.
Another approach to limiting the burden of ATC calculations is to
allow Transmission Providers to adjust the amount of effort put into
calculating ATC and the frequency of recalculating ATC based on the
level of commercial interest in a path and how constrained the path is
over time. For paths that are never constrained because of the lack of
commercial activity, a rough estimate of capability could be posted and
could be updated rarely. For constrained paths, a much more accurate
calculation of capability is needed and it should be updated
frequently.
Question 5. The Commission requests comments on ways to minimize
the burden of ATC calculations, while ensuring that wholesale
transmission customers have the information they need.
f. Differences in ATCs
Because parties on either side of an interface each may use
different engineering assumptions, they may calculate different ATC
values. The What Report says that the lower ATC must be used. The
Commission expects that differences in ATCs will be small and will
narrow over time as Transmission Providers work to develop consistent
methods of calculating ATC.
g. Format for Transmission Tariffs
The Commission agrees with the recommendation of the What Group
that providers must provide downloadable files of their complete
tariffs on the RIN. However, the What Report says that the format of
these files should be one generally accepted by all utilities in the
region. The issue of the format for the transmission tariffs will be
addressed in the Open Access rule. This format would also be the format
for tariffs available on the RIN.
Question 6. The Commission requests comment on a standard format
for electronic submission of transmission tariffs to the Commission.
h. Posting Requirements for Recallability and Curtailability
The What Report states that ``[o]ther elements of Recallable
service which will be posted on an EIN include: permissible reasons for
recall, recall procedures, reinstatement provisions and placement in
the request queue as applicable.'' 16 Because the permissible
reasons for recall, recall procedures, and reinstatement provisions are
defined in the tariff and the tariff is available for download on the
RIN, they do not need to be posted separately.
\16\ What Report at 14.
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Similarly, the report says ``curtailment information which will be
posted on the RIN as part of the product definition includes:
permissible reasons for curtailment, notice required, curtailment
procedures, and curtailment priority relative to other classes and
other customers in the same class if necessary due to FERC curtailment
queuing policy.'' 17 The Commission proposes that if the
permissible reasons for curtailment, notice required, curtailment
procedures, and curtailment priority are defined in the tariff and the
tariff is available for download on the RIN, they do not need to be
posted separately.
\17\ What Report at 15.
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i. Communicating Curtailments and Denials of Requests for Service
The Commission proposes that when requests for service are denied,
or when transactions are curtailed, Transmission Providers must
communicate to transmission customers, through a mechanism that they
must install into the RIN: (1) The reason(s) that the transaction(s)
could not be accommodated; and (2) the available options, if any, for
adjusting the operation of the Transmission Provider's system to
increase transfer capability in order to accommodate the
transaction(s).
Question 7. The Commission requests comments on what information
about curtailments and denials of requests for service should be
communicated on a RIN.
Question 8. What specifications would be needed for information
about curtailments and denials of requests for service to be posted
in HTML displays and what specifications and formats would be needed
to standardize downloadable files? 18
\18\ HTLM stands for Hyper Text Markup Language.
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j. Posting Information About Ancillary Services
The What Group was unable to define requirements for the posting of
information about ancillary services. Ancillary services are those
services necessary to support the transmission of electric power from
seller to purchaser at wholesale given the obligations of control areas
and transmitting utilities within those control areas to maintain
reliable operations of the interconnected transmission system. Basic
wholesale transmission service without ancillary services may be of
little or no value to prospective customers. A variety of ancillary
services is needed in conjunction with providing basic wholesale
transmission service to a customer. The following six ancillary
services are identified in the Open Access NOPR: 19
\19\ 60 FR at 17683-85.
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1. Loss Compensation Service;
2. Load Following Service;
3. System Protection Service;
[[Page 66190]]
4. Energy Imbalance Service;
5. Reactive Power/Voltage Control Service; and
6. Scheduling and Dispatching Service.
The Commission proposes that the Transmission Provider post offers
for ancillary services on the RIN. Other entities offering the same
ancillary services shall have a comparable right to post offers on the
RIN.
Question 9. The Commission requests comment on where on the RIN
offers by other entities to provide ancillary service should be
placed. The What Report states that these offers should be posted in
the ``Informal Transmission Communications'' section of the RIN.
Would this place third-party providers at a disadvantage relative to
the Transmission Provider?
The Commission proposes that entities that post offers to provide
ancillary services on the RIN should pay the costs associated with
posting this information.
Question 10. The Commission requests comments on how to
determine the costs associated with posting ancillary services on
the RIN.
Question 11. With regard to information about offers to provide
ancillary services provided by an entity other than the Transmission
Provider, what specifications would be needed for this information
to be posted in HTML displays and what specifications and formats
would be needed to standardize downloadable files?
The following information about ancillary services is important to
wholesale transmission users and should be posted on the RIN:
Ancillary services that are available from the
Transmission Provider;
Ancillary services that may be provided by the
transmission customer or third parties;
Price of each ancillary service;
Which ancillary services, if any, are bundled with
transmission service;
Paths that the ancillary services information pertains
to;
Deviation band, if any;
Whether the rates for any specific ancillary service
would change if taken in combination with any other ancillary
service, such as operating reserve and load following;
Whether any technical limitations exist on who could
provide specific ancillary services;
Whether the rights of ancillary services are
reassignable; and
Identity of third party if ancillary services are being
procured from a third party.
Question 12. The Commission requests comment on whether there is
any additional information needed about ancillary services that is
not included in the list. Is any information on the list not needed?
Although the ancillary service information on the RIN should be the
most current information available to the Transmission Provider, the
information on ancillary services will not change as frequently as the
information on the capability availability. However, there is
definitely a need to update ancillary services information on RIN on an
ongoing basis.
Question 13. The Commission requests comment on how often
ancillary services information should be updated.
Ancillary services information should be posted for each
transmission path of the Transmission Provider for which ATC is posted.
If there are exceptions to the general applicability of the ancillary
services posting requirements because of technical limitations on a
specific interface, it should be so stated.
k. Must Transmission Customers Resell Unused Capability?
The What Report raised the question of whether Transmission
Customers should be required to make available to other wholesale
customers unused transmission capability to which they have rights.
This issue is not a RINs issue and will be addressed in the Open Access
rule.
l. Posting Information About Resales
Although the What Report states that a Transmission Customer should
be able to post its transmission capability rights for resale, it does
not say where resale offers are to be posted on the RIN. This issue is
addressed in section D.2(g)iv below.
m. Mechanism for Discounting Transmission Service Rates
The What Report raises a question about whether all transmission
rate discounts should be posted on the RIN on the basis that a
competitive market can be achieved only through non-discriminatory
discounting. An alternative posed in the What Report is to post only
discounts that a Transmission Provider provides to itself or its
affiliates. This is to police self-dealing and affiliate favoritism
which are not an issue in other transactions. It is important to
distinguish between an offer of a discount and a discount already
given. The Commission is proposing, in the proposed standards of
conduct, to require a Transmission Provider that offers any discount to
itself or to its merchant function or an affiliate to offer, at the
same time, on the RIN, comparable discounts for similar service to all
Transmission Customers. As to discounts that the Transmission Provider
has agreed to give to any Transmission Customer (affiliated or
unaffiliated), the Commission is proposing that these discounts must be
posted on the RIN within 24 hours after the agreement is entered into
(measured from when ATC is adjusted in response to the agreement), and
that they remain posted for 30 days.
Question 14. The Commission seeks comment on whether all
transmission discounts should be posted on the RIN, or only those
provided to the Transmission Provider or its affiliates. If
discounts are to be posted, when should this be done? Also,
commenters should address whether requiring the Transmission
Provider to offer ``comparable discounts for similar service to all
transmission customers'' is necessary and/or sufficient to prevent
unduly discriminatory pricing practices.
The Commission proposes that the information about discounts to
affiliates should be posted on the RIN using HTML displays and as files
that are available for download.
Question 15. Regarding information on affiliate discounts, what
specifications are needed for the information to be posted in HTML
displays and what specifications and formats are needed for the
downloadable files?
n. Discussion of Generation Information Related To Redispatch/
Opportunity Costs
Opportunity or redispatch costs are meant to compensate a party
that gives up its right to wholesale transmission service so that
another party can take service. The opportunity/redispatch costs
associated with increasing the ATC of a constrained Transmission Path
will depend upon the time, duration and nature of the requested
transmission use because of the dynamics of system loads, economic
dispatch, outages, loop flow, the types of generation resources
involved, the availability and cost of energy storage, and other
operating conditions expected during the time of use. The What Report
raises the issue of whether the ability of the Transmission Provider to
impose these costs on the Transmission Customer requires the posting of
generator run status and cost information on the RIN.
Transmission Providers may charge only for legitimate and
verifiable opportunity/redispatch costs. Information needed to verify
these costs is required to be provided to the Transmission Customer
charged on request. This information is not required to be posted on
the RIN.
o. Discussion of Providing Additional Information Beyond ATC
The proposed rules on Open Access state that ``[t]he utility must
make all data used in calculating the ATC
[[Page 66191]]
publicly available.'' 20 This information must be available for
download on the RIN.
\20\ What Report at 121.
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Question 16. The Commission requests comments on how the data
used in calculating ATC should be formatted. Should it be in free
form text, predefined tables, or comma delimited ASCII files? If in
free form text, should it be in plain ASCII text or in a word
processor format, such as WordPerfect or Word?
Question 17. The Commission requests comments on what is the
appropriate time delay for making supporting information on ATC
available. Should the Commission require specific formats for ATC
supporting data? If so, what should the formats be?
Near-Term Transmission Information
The What Report provides arguments for and against providing
additional information beyond ATC on the RIN. Those entities who are
against providing additional information argue that this information is
of little practical use, sufficiently voluminous to substantially
reduce performance of the RIN, and burdensome to provide. They further
argue that some of this information is competitive data. Those entities
who are in favor of providing additional information beyond ATC on the
RIN argue that the additional information will increase the confidence
of transmission customers in the validity of the posted ATC and that
this information will help the transmission customers anticipate with
greater certainty whether to attempt to request and schedule resources
that may be subject to curtailment due to projected loading trends on
certain system components.
The Commission believes that the issue of customer confidence can
be addressed through audits of posted ATC values or by raising the
issue at regional forums or filing a complaint with the Commission.
However, the Commission also believes that transmission customers
should have as much pertinent information available as will enable them
to make informed decisions about the relative quality of wholesale
transmission services they intend to request and purchase.
The Commission therefore proposes to require that Transmission
Providers post information about those system elements that have a
direct and significant impact on ATC. Such elements could include
generators, transmission lines, phase shifters, series and shunt
capacitors, static VAR compensators, special protection systems or
remedial action schemes, etc. In addition, the Commission proposes to
require the posting of actual path loadings in addition to the path
schedules.
Question 18. To keep the amount of information on the RIN
manageable, the Commission requests comment on whether it is
sufficient to provide information only about planned outages and
return dates (for both planned and forced outages) for those system
elements deemed to have a direct and significant impact on ATC and
whether posting this information on the RIN would cause any
confidentiality concerns.
Question 19. Since many system elements can impact the ATC of a
path, how should ``significant and direct impact'' be defined? Is it
acceptable to limit the additional information to those system
elements for which nomograms, derating tables, and operating guides
have been developed?
Question 20. Are there any difficulties, technical or otherwise,
associated with posting actual path flows on the RIN?
The ATC of some transmission paths is a function of run status and/
or megawatt output of certain generators. For example, the Southern
California Import Transmission Nomogram is affected by the run status
of units in the Palo Verde Generation Complex. When one or more of the
Palo Verde units are not on line, the nomogram is reduced by several
hundred megawatts.21
\21\ A nomogram defines the interactive relationship of the
transfer capability of a transmission path to other system
conditions, especially power flows on one or more other transmission
paths.
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Question 21. In cases where ATC of a path is a function of run
status of one or more generators, is it sufficient to post the
expected amount and date of changes to ATC on the RIN, corresponding
to the planned outage or return dates of generators?
Question 22. If operating guides, nomograms, operating studies,
and similar information are to be made available on the RIN for
download, would it be logical to expect that transmission customers
will be able to deduce the run status of those generators which
significantly and directly impact ATC by observing the changes to
ATC?
Far-Term Transmission Information
The What Report proposes that for ``far-term'' transmission service
(over one year), firm service (non-recallable) ATC should be posted
``seasonal[ly], by year, for years 1-10 (as available).'' 22 The
caveat ``as available'' suggests that the What Group does not want
utilities to have to perform additional transmission studies to
calculate ``far-term'' ATCs beyond those done for normal planning and
special requests.
\22\ What Report at 24.
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The Commission agrees with this. However, we find the ``as
available'' requirement vague. It appears to leave the posting of this
information to the discretion of the Transmission Provider. For
clarity, the Commission proposes to require that any planning or
specifically requested studies of the transmission network performed by
the Transmission Provider be provided on the RIN on a same-time basis.
This would include only those parts of customer-specific
interconnection studies that relate to network impacts.
Question 23. The Commission requests comments on how
transmission studies should be formatted for download from the RIN.
Should they be in free form ASCII text, or in a word processor
format, such as WordPerfect or Word?
p. Requested Start and End Times/Dates
In the section in the What Report on ``Information Provided by
Transmission Customer in Requesting Service'', under ``duration'' the
report states that ``[t]his must correspond to full clock hour
periods.'' 23 The Commission proposes to enhance flexibility by
requiring instead that the duration must be a specific time as stated
in the Transmission Provider's tariff.
\23\ What Report at 26.
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q. Transaction Anonymity
The What Report raises a question about whether individual
transmission requests and responses should be made known only to the
Transmission Customer making the request, the Transmission Provider to
whom the request is made and, to the extent necessary, the affected
control area operators and/or security centers, or to all users of the
RIN on a same-time basis. The Commission proposes to restrict
information about the request and response process, while it is
ongoing, to those parties directly involved.
We believe that this procedure will be adequate because we are
proposing standards of conduct that would require Transmission
Providers to separate the functions of their marketing employees and
their system operations employees and that would restrict access by
wholesale marketing employees to information available on the RIN.
Information about a completed request and response process should be
recorded in the audit file.
r. Auditing Transmission Service Information
The Commission proposes that RIN audit log files \24\ must be
downloadable from the RIN in a standard format and must be retained on
a rolling basis for three years from entry on the RIN.
\24\ See What Report at 31.
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The Commission notes that transmission transaction prices are to be
[[Page 66192]]
included in the information in the audit file proposed in the What
Report.\25\ We do not consider price information concerning cost-based
transmission services to be commercially sensitive. With respect to
information concerning negotiations on transmission requests, we
propose that such information not be posted unless an agreement to
provide the transmission is reached.\26\ This information is to be
available only in the audit file. In addition, if an agreement is
reached, we propose that the identity of parties to transmission
transactions be masked until a standard release period elapses. This
release period should be a standard period after which it is commonly
recognized that most information is no longer commercially sensitive.
The Commission proposes that a reasonable standard release period is 30
days after the date when the Transmission Provider's ATC was adjusted
in response to the transaction; after that date all transaction data
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will be made available.
\25\ See What Report at 31-32.
\26\ An exception would be where the Transmission Provider
offers discounts to its merchant function or an affiliate. As noted
elsewhere, such information would need to be posted regardless of
whether an agreement to provide transmission was reached.
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Question 24. The Commission requests comment on what information
should be considered commercially sensitive, the 30-day release
period proposal, and on how and when commercially sensitive
information should be released to concerned parties before the
standard release period. Should affiliated transactions be treated
differently?
D. Technical Issues Concerning the Development and Implementation of
RINS
1. Summary of the ``How'' Working Group Report
After a review of the process used by the ``how'' working group
(How Group) in formulating its views, and after consideration of the
Group's efforts to invite input from a broad spectrum of industry
segments, the Commission is satisfied that the How Group conducted its
process in an inclusive and open manner. The How Group report (How
Report) represents a broad agreement among all segments of the electric
power industry. It presents the agreed minimum requirements for
computer systems and associated communications facilities needed by
public utilities to provide comparable access to transmission and
ancillary services information by all wholesale transmission users.\27\
\27\ The version of this report attached to this proposal
intentionally omits Appendix C (Workshop Participants), Appendix D
(Survey Questionnaire and Results), and Appendix F (Correspondence
with ``What'' Working Group). The How Report, in its entirety, is
posted on CIPS.
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The How Group proposes a two-phase approach. It believes that the
Phase I implementation provides the information needed for the
Commission's open access program and works well enough to communicate
this information to customers. Under the How Group proposal, RINs would
become fully functional in Phase II. The How Report recommends that
Phase II requirements be implemented 24 months after the effective date
of the final rule establishing Phase I RIN requirements.
a. Phase I Recommendations
The How Group proposes that the required transmission service
information be posted on RINs operated by the transmission-owning
public utility, jointly with other utilities, or by a third party.\28\
Each RIN implementation, whether on behalf of a single entity or a
group of utilities, is referred to as a Node. A RIN operated jointly by
several utilities would be considered one Node. RIN Nodes must be
accessible through the Internet. By connecting each Node through the
Internet, transmission service information from each utility becomes
part of a network. With a single Internet connection, customers would
be able to access information from any utility and would even be able
to display information from several Nodes at the same time.\29\
\28\ How Report at Sec. 2.4.1 (a).
\29\ How Report at Sec. 2.4.1 (f).
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Nodes must support the use of Internet tools. These inexpensive,
widely available, and well-tested tools will permit customers to access
RIN information easily and to download \30\ it to available desk-top
database programs, spreadsheets, and other applications.\31\ Customers
would also be able to upload \32\ information to RIN Nodes. The
specific tools for doing so are described in Appendix B.
\30\ Download refers to the transfer of a file from a RIN Node
to the user's computer system.
\31\ How Report at Sec. 2.4.1 (c).
\32\ This is accomplished by transferring a file from the user's
computer system to a RIN Node.
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RIN users would access Nodes using World Wide Web (WWW)
browsers.\33\ Each Node would display information using the HTML
protocol required by World Wide Web browsers. Screen displays would
consist of a series of pages that may be viewed by customers without
requiring them to download the pages.\34\ Under the standards that will
accompany issuance of a final rule on RINs, the information on each
page, but not the actual displays, must be standardized. Information
would also be required to be made available for downloading, in a
standardized ASCII \35\ format, using the Internet's File Transfer
Protocol (FTP).
\33\ The World Wide Web is a system of computer resources that
are accessed through the Internet.
A Browser is a computer program for retrieving and reading
hypermedia documents from the WWW. A hypermedia document can
contain, text, graphics, video, sound or data. These documents are
often linked to other documents.
\34\ How Report at Sec. 3.2.3
\35\ ASCII refers to the American Standard Code for Information
Interchange, a code for character representation.
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In Phase I, customers would be able to use the RIN to purchase
transmission from public utilities. They would be able to request
capacity either by completing a standardized form contained in an on-
line HTML page or by uploading a filled-out form using FTP.\36\
Customers who want to resell transmission capacity would upload (post)
the relevant information to the same RIN Node used by the primary
provider from whom they purchased the ATC.\37\ Customers would also be
able to upload Want Ads containing such information as requests to
purchase transmission capacity.\38\
\36\ How Report at Sec. 3.2.6.
\37\ How Report at Sec. 3.2.4
\38\ How Report at Sec. 3.2.3 (e).
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In Phase I, transmission-owning public utilities may, but would not
be required to, provide private connections at the request of a
customer. These connections could include leased-lines or connections
to a private network. These connections would have to use the same
Internet tools as are required for the Internet connection.\39\
Customers would pay for the cost of the connections. If a connection is
made for one customer, the same type of private connection must be made
available to all customers in a comparable manner. In Phase II,
utilities would be required to provide these connections.
\39\ How Report at Sec. 2.4.1 (g).
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The How Report proposes that utilities may provide value-added
services for a fee on a fair and non-discriminatory basis. Such
services would include notifying customers of changes in available
capacity, beyond simply posting a notice of the change.\40\
\40\ How Report at Secs. 3.1.2 (c) and 3.2.2.
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The How Group developed a model of the information requirements
that the What Group identified as needed for comparable access. For
Phase I, the model specifies the information that must be available at
each RIN Node, how the information may be requested and the layout of
the information received by customers. Customers would be limited to
obtaining
[[Page 66193]]
information from HTML text displays and selecting from menus of
downloadable files. Customers would receive the information either as
HTML pages or as ASCII files in a predetermined form and layout.
The information model for Phase II, while not fully specified,
would provide customers with much more flexibility in requesting and
receiving information. Customers would be able to make complex queries
of a data base and specify the order in which the information will be
received.
For security purposes, and as an aid in auditing performance and
transactions, customers would be required to register with the
transmission-owning utility or its agent before they are permitted
access to the utility's transmission service information on the
RIN.\41\
\41\ How Report at Sec. 3.2.1.
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The How Report provides a number of performance standards and a
limited set of security precautions. Performance requirements include
sizing RIN Nodes to handle the loading of registered subscribers,
responding to subscriber requests, backing up the system, and other
areas that are necessary for the system to function as desired.
Security precautions include firewalls \42\ between computer systems
and the Internet, the use of passwords, the use of data encryption for
uploads of sensitive or confidential information, and the use of ASCII
text for uploads of other information.
\42\ A firewall increases security by blocking access to certain
services on a private network from the Internet.
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b. Phase II Requirements
The specifications for Phase II are less detailed than those for
Phase I, but the How Group anticipates that Phase II RINs would be an
upgrade of Phase I and would not make Phase I investments obsolete.
Phase I is envisioned as a prototype for Phase II. Once Phase I becomes
operational, the full information and functional requirements needed to
support open access transmission service will become clearer. The How
Report recommends the formation of a RIN Management Organization to
develop Phase II standards for submission to the Commission. The How
Group proposes that Phase II be implemented two years after issuance of
the final rule on Phase I RIN requirements.
The How Group foresees the need for several key additional
requirements in Phase II.\43\ In Phase II, they foresee that RIN Nodes
must provide connections to private networks if requested by a
customer, for a negotiated cost-based fee, whereas in Phase I public
utilities would not be required to make these connections. In Phase II,
RIN Nodes would have to offer the capability of informing customers
immediately when information of interest to them is changed by the
provider. RIN Nodes would be required to support search and select
tools to access information in RIN Node data bases, and to meet a more
complete set of performance requirements.
\43\ How Report at Sec. 2.4.2.
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In Phase II, the information model would change, although the
information in the data base would be the same. Customers would be able
to receive information by querying a data base. The information would
no longer be received in a predetermined fixed layout. Customers would
be able to specify the exact information they want to receive and the
layout they want to receive it in. For example, customers would be able
to request available capacity by quantity of capacity, point of
delivery, date of availability, and have it sorted by the name of the
transmission-owning public utility. The customer also would be able to
define the order in which the information is received in the file.
2. Discussion
The How Group assumed the task of specifying, in a very short
period of time, a RIN that would meet the Commission's requirement for
customer access to information about transmission services. It
developed a proposed solution that places the RIN of each transmission-
owning public utility on a network that can be accessed by all
customers, using inexpensive tools with a single connection, with what
the group believes to be a reasonable cost to both utilities and
customers, sufficient security, and sufficient response time. The
proposal to use the Internet to tie RIN Nodes together appears to be an
inexpensive way for customers to access transmission services
information and for transmission-owning public utilities to provide it
to them.
The Commission proposes to adopt the proposals contained in the How
Report, with the exceptions discussed below.\44\ Except where noted,
the issues discussed are Phase I issues.
\44\ The Report refers to Buy/Sell transactions. As used in the
Report, the term refers to a request to purchase transmission
capacity and the response to the request. The reader of the How
Report should substitute Purchase request/Response for buy/sell
whenever it is encountered.
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a. Phasing
Because of the complexity of building RINs, and the need to begin
the Commission's transmission open access program promptly, the
Commission agrees with the How Report that a phased approach to
implementation is warranted. The Commission proposes to require Phase I
implementation as of the effective date of a final rule on non-
discriminatory open access transmission and stranded costs.
At How Group meetings, many transmission-owning public utilities
expressed the view that implementing Phase I within 90 days of the date
of a final RIN Rule may not allow sufficient time to design, build, and
test RINs. The How Report notes that a large risk exists that many RINs
will not be fully functioning at that time. These transmission-owning
public utilities request that the Commission permit a six-month
implementation period.
Question 25. The Commission requests comments on how long the
implementation schedule should be for Phase I.
Phase I would provide a good first step toward ensuring that
sufficient information is available to utility customers to achieve the
Commission's goal of comparable access to transmission information. It
would not, however, provide all of the performance requirements or
information needed for a long-term open access RIN.
Phase II would provide for more expanded services. The How Report
addresses Phase II issues, but does not fully specify them. It proposes
that Phase II be implemented within two years of a final rule on RINs.
The Commission believes that the need for the additional functions and
performance requirements proposed for Phase II requires expeditious
implementation. Accordingly, the Commission requests that the industry
continue the process of developing standards, and provide a consensus
report to the Commission on Phase II recommendations by no later than
January 1, 1997. We anticipate that this report would be the basis of
supplemental RIN proceedings to implement Phase II RIN requirements.
b. Standards Issues
Based on our experience with implementing standards for natural gas
pipeline electronic bulletin boards,45 a
[[Page 66194]]
major concern of the Commission is that the proposed standards be
sufficiently unambiguous to provide consistent implementation of the
standards on every RIN Node. Customers and other users of RINs should
be able to use the same software to access all RIN Nodes and should be
able to expect that procedures and data definitions will be the same on
all Nodes. The Commission must ensure that every RIN Node would be
presenting information that would be clearly understood.
\45\ See Order No. 563, Standards for Electronic Bulletin Boards
Required Under Part 284 of the Commission's Regulations, Final Rule,
III FERC Stats. & Regs. para. 30,988 (1993); Order 563-A, Order on
Reh'g, III FERC Stats. & Regs. para. 30,994 (1994); Order 563-B,
Order Denying Reh'g, 68 FERC para. 61,002 (1994); Order 563-C, Order
Accepting Modifications, 68 FERC para. 61,362 (1994); Order 563-D,
Order Accepting Modifications, 69 FERC para. 61,418 (1994); Order
563-E, Order Granting Clarification, 70 FERC para. 61,188 (1995).
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i. Phase I Data Definitions for HTML Pages and File Transfers
The information model, data dictionary and various templates
appearing in the How Report specify the name, definition and format of
the data items to be communicated on the RIN. They are intended to be
the basis for the standards specifying file uploads and downloads and
HTML displays. Because of the importance of these standards to the
usability and uniformity of RINs, the Commission must ensure that
downloadable and uploadable files will have the same unambiguous
structure, field formats, units and definitions, etc., no matter which
RIN Node they come from or go to. The Commission is similarly concerned
that all WWW page displays, while not necessarily having the same
appearance, contain the same information and use the same definitions,
etc.
Question 26. Does the How Report define HTML displays and
downloadable files with sufficient clarity to permit public
utilities to implement Phase I such that the downloaded files and
HTML displays received by customers from each RIN have the same
definitions, etc.? If not, what clarifications are needed?
Similarly, are uploaded files sufficiently defined in the How
Report?
With these goals in mind, the Commission has compiled a series of
templates (tables) that show in one place the specifications that
appear in various sections of the How Report. The templates contained
in Appendix ``C,'' are intended to help produce a consistent
implementation of RIN requirements and highlight problems that could
hinder consistent implementation of RIN standards.
In Appendix ``C'', the Commission proposes to make changes to
certain definitions, data formats, and specifications appearing in the
How Report.
Question 27. The Commission invites comment on the issues
discussed in Appendix ``C''.
The Commission proposes to add a price field to the templates that
would specify available capacity and those templates associated with
the purchase of capacity. The price field would allow primary providers
to offer capacity to buyers at a discount. The price field in the
available capacity templates would contain the initially offered price,
whether this is the tariff price or a discount. Adding the price field
to the templates for the purchase of capacity would allow buyers to
offer a price for capacity below the posted price. Further discounts
from any posted offered price could be negotiated. The price field in
the purchase of capacity templates would permit customers to offer a
price different than the offering price.
ii. Internet Browsers
There are a large number of Internet browsers available
commercially and in the public domain. The How Report proposes that
browsers support ``at least'' HTML version 3 and ``optionally'' support
Secure Sockets Layer. The HTML standards used by browsers change from
time to time, and, in addition, various browsers can support different
extensions to the standards. The Commission does not want to stifle
innovation, but at the same time it does not want chaos on the RIN. The
Commission does not want customers to be forced to use different
browsers for different RIN Nodes. The Commission wants to ensure that a
customer will be able to choose a browser and use it to access all RIN
Nodes.
Question 28. The Commission requests comments on how to ensure
that a customer will be able to choose a browser and use it to
access all RIN Nodes.
iii. Bandwidth of Node Connections to the Internet
The How Report proposes a formula to calculate the minimum
bandwidth connection between a RIN Node and the Internet using the
criteria of customers receiving data at the rate of 8,000 bits per
second.46 This speed may be adequate for customers reading HTML
pages, which are about 8,000 bits in size, but it might be too slow for
customers downloading many 100,000 byte files.47 Eight thousand
bits per second is much slower than the 28,800 bit per second telephone
connections many private individuals use to connect to the Internet.
Electric utilities will likely have even faster direct connections to
the Internet. The Commission is concerned that the basis for the
calculation in the Report will lead to connections that are too slow
and proposes to use 28,800 bits per second instead of 8,000 bits per
second in the bandwidth formula.
\46\ How Report at Sec. 3.4.3.
\47\ A bit is the smallest unit of computer data and can have a
value of zero or one. A byte is eight bits and is often used to
represent a character of text.
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Question 29. The Commission requests comments on the use of
28,800 bits per second in the calculation of the minimum bandwidth
connection between a RIN Node and the Internet in the formula
appearing in the How Report.
iv. Common Codes
The How Report does not address a standardized method of uniquely
identifying transmission-owning public utilities and customers, nor
does it address a standardized method of identifying facilities.
(1) Company Codes
The Commission's experience with implementing standards for file
transfers and electronic bulletin boards in the natural gas industry
shows that the use of a common system of identifying companies enhances
the efficiency of data transfers. The Commission is satisfied with the
results of using DUNS numbers 48 as the standard to uniquely
identify pipelines and shippers in the natural gas transactions.49
The Commission proposes to require the use of DUNS numbers to identify
transmission-owning utilities and customers on RIN Nodes.
\48\ DUNS numbers refer to the Data Universal Numbering System,
maintained by Dun and Bradstreet.
\49\ See Standardized Data Sets and Communication Protocols for
Electronic Bulletin Boards in Docket No. RM93-4, Order 563(a), supra
n.45, Reg. Preambles at 31,034.
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Question 30. The Commission requests comments on the use of DUNs
numbers to identify RIN participants.
(2) Common Location Codes
The Commission's experience in the natural gas industry also
demonstrates that a common method of uniquely identifying location
points will be needed to facilitate movement of power across the grid.
The natural gas industry uses a sophisticated system of ``smart'' codes
(PI-GRID Codes), developed by the Petroleum Information Corporation.
This coding system uses ``smart'' codes, which identify each
transaction point by such items as state, county, latitude, longitude
and type of facility.50 Thus, the code will tell RIN users where a
posted receipt, delivery point or path is
[[Page 66195]]
located, the function it performs, and whether there are multiple
facilities at that location. The Commission proposes to use a smart
code system to identify location, including paths, on the electric
transmission grid.
\50\ See Order 563(c), supra n.45, 68 FERC at 62,462-65.
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Question 31. The Commission requests comments on how to develop
common location codes for the electric power industry.
v. Data Compression Standards
The How Report recommends that RINs support data compression of
downloadable and uploaded files, using standard, commonly available
compression applications.51 The Commission believes that data
compression will speed up the transmission of files. However, it
believes communication of the RIN information would be enhanced if
every RIN Node used the same compression techniques.
\51\ How Report at Sec. 3.3.8 (c).
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Question 32. The Commission requests comments on what data
compression technique or techniques should be made standard for all
RIN Nodes.
vi. Templates for Upload and Download Header Information
The How Report does not completely specify how to use the upload
and download header templates in Phase I.52 The templates require
a series of header fields specifying such information as: (1) who is
sending the data; (2) the kind of data, such as Provider Hourly
Capacity Available for Purchase; (3) the column headings of the data;
and (4) the number of rows of data. This header information is followed
by rows of actual data. The discussion of the template does not specify
delimiters between rows of data. The result would be that an entire
file of Provider Hourly Capacity Available for Purchase downloaded from
a RIN Node would be received as one long record. However, customers
downloading data into personal computer spreadsheets may have trouble
using the information since spreadsheets cannot handle very long
records. To remedy the problem the Commission proposes to require, at
least for Phase I, the sending RIN Node to separate each row of data
with carriage return and line feed characters. Similarly, customers
uploading data to a RIN node would separate each row of data with
carriage return and line feed characters.
\52\ How Report at Sec. 3.3.8.
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Question 33. The Commission requests comments on whether the
upload and download templates are sufficiently specified to be
functional and whether they are sufficiently specified to permit all
RIN Nodes to implement them in the same way.
c. Costs
Transmission-owning public utilities will be entitled to recover
reasonable expenses associated with developing and running RINs. The
costs of developing and operating the system will generally be fixed
and not attributable to individual users. The Commission, therefore,
proposes to roll these costs into wholesale transmission rates. The
Commission also proposes to permit costs that can be identified as
dependent on usage to be charged as usage fees to individual customers.
Question 34. The Commission requests comments on whether it
should allow the recovery of reasonable expenses associated with
developing and running RINs by rolling these costs into wholesale
transmission rates. How should fees associated with RIN usage be
calculated and recovered?
d. Access to RIN Information by the Public
The Commission believes that the registration procedures described
in the How Report are useful security tools.53 The Commission also
believes that the Commission, state regulators, and the public should
have access to transmission services information consistent with the
need to maintain the security of the system.54 The Commission,
therefore, proposes that once Commission Staff and members of the
general public have complied with the requisite registration
procedures, they be granted ``read only'' access to RINs.
\53\ How Report at Secs. 3.2.1 (b)-(f).
\54\ cf. 16 U.S.C. 824l.
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e. The Number of RIN Nodes
The How Report does not put a limit on the number of RIN Nodes, but
raises the issue of how many RIN Nodes there should be.55 Public
utilities would be permitted to combine the function of their RINs into
a single Node. Consequently, there could be as many Nodes as there are
transmission-owning public utilities or only a very small number of
Nodes. The How Group sees merit in a small number of Nodes and goes on
to suggest a small number of Nodes be actively encouraged in order to
minimize the networking management requirements for the RIN and to help
ensure seamlessness of access. On the other hand, it recognizes that
the advantages of a small number of separate Nodes must be weighed
against the complexity and size that each Node would have to be to
handle the correspondingly large number of transmission-owning
utilities.
\55\ How Report at Sec. 3.1.2 (f).
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Question 35. The Commission requests comments on whether it
should encourage a small number of RIN Nodes.
f. Connections to Third Party Networks
The How Group proposes, in Phase I, to permit transmission owning
utilities to provide connections to private networks, if requested to
do so. In Phase II, the How Group proposes that public utilities be
required to provide these connections. It proposes that customers be
required to pay the cost of the connections and the connections would
be required to use the same Internet tools as are required for the
Internet connections.
The Commission believes that private networks and third party
services can provide valuable contributions to the successful operation
of RINs. The Commission, therefore, proposes to require utilities to
provide private connections in Phase I. As proposed by the How Group,
the cost of the connections would be paid for by the customers making
the requests and the networks would be required to use Internet tools.
Question 36. The Commission requests comments on whether
transmission owning utilities should be required, in Phase I, to
provide connections to private networks.
g. Unresolved Issues
The How Group was unable to resolve a number of issues. Many of
them concern issues covered by the What Group and are discussed
elsewhere.56 The Commission requests comments on the following
unresolved issues.
\56\ Supra at 40-60.
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i. Price Discrimination Issues
The How Report would permit public utilities to offer value-added
RIN services above the basic level of service. The Commission proposes
to allow these services. However, such services would remain cost based
until the Commission is satisfied that market-based (value added) rates
should be allowed for such services. Requests for market-based rates
for such services will be addressed, initially, on a case-by-case
basis.
Some customers are concerned that price could be used to
discriminate between customers if public utilities are permitted to
charge for different optional services, such as higher speed
connections, value-added services, and automatic notification of
changed data. If public utilities charge relatively high prices for
these additional services, then some customers may not be able to
afford them. These customers fear, for example, that they could be
effectively
[[Page 66196]]
locked out of the transmission market if they could rarely get timely
access to the queue for purchasing transmission access.
These customers felt that the Commission should monitor and
possibly regulate the prices charged for the services to ensure that
they were non-discriminatory.
ii. Transmission Services Information Timing Requirements
The How Group proposes several timing requirements for posting
transmission service information and suggests that the requirements be
reviewed for reasonableness, possibly during Phase I. The Commission
believes that some timing requirements should be operative during Phase
I.
Question 37. The Commission requests comments on whether the
following How Group Proposals are adequate:
(1) Transmission Service Information Availability: The most
recent Provider transmission service information, including updates
reflecting power system changes, shall be available to all Customers
within 5 minutes of its scheduled posting time at least 98 percent
of the time. The remaining 2 percent of the time the transmission
service information shall be available within 10 minutes of its
scheduled posting time;
(2) Notification of Posted or Changed Transmission Service
Information: Notification of transmission service information posted
or changed by a Provider shall be made available within 60 seconds
to all subscribed Customers who are currently connected; and
(3) Acknowledgment by the Transmission Service Information
Provider: Acknowledgment by the transmission service information
provider of the receipt of Customer purchase request/response
requests shall occur within 1 minute for Phase I. The actual
negotiations and agreements on purchase request/response requests do
not have time constraints. For Phase II, acknowledgment shall occur
within 30 seconds.
iii. The Posting of Capacity Available for Resale
The How Report also raises issues concerning posting of capacity to
be resold.57 The report requires the reseller to post the relevant
information on the Node of the facility owner.58
\57\ How Report at Sec. 6.6.
\58\ How Report at Sec. 3.2.4.
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The Commission is concerned that unless primary capacity and
secondary capacity appear in the same location on the Node and require
the same forms to be filled out and the same procedures followed, the
capacity for sale by the facility owner will be easier to find and
purchase, thereby giving the facility owner a competitive advantage.
Therefore, the Commission proposes that secondary capacity be posted on
the same page, using the same tables as similar capacity being sold by
the facility owner.
Question 38. The Commission requests comments on how to redesign
the download templates in Appendix C so that primary and secondary
capacity can be offered through downloadable files that have the
same format. The Commission also requests comments on how primary
and secondary capacity can be displayed in the same tables on a RIN
Node.
Question 39. What is the best way to handle the purchase request
and response process when primary and secondary capacity appear in
the same RIN displays and files?
The Commission proposes that resellers pay the costs associated
with posting this information on the RIN.
Question 40. The Commission requests comments on how to
determine the costs associated with posting resales on the RIN?
E. Standards of Conduct
The What Group and the How Group both focused on the specific
issues that the participants at the Technical Conference agreed that
they should address. Nevertheless, other important RINS-related issues
must also be decided. One such issue is whether the Commission needs to
promulgate generic standards of conduct for jurisdictional utilities in
the electric industry akin to the ones that we promulgated for the
natural gas industry,59 or whether this issue should be decided on
a case-by case basis. For the reasons explained below, we propose to
address this issue on a generic basis by issuing Standards of Conduct
patterned on those we promulgated for the natural gas industry.
\59\ See 18 CFR Part 161. See also the primary Commission orders
addressing natural gas pipeline marketing affiliate regulation, and
the other cases cited therein: Order No. 497, 53 FR 22,139 (June 14,
1988), III FERC Stats. & Regs. para. 30,820 (1988); Order No. 497-A,
order on rehearing, 54 FR 52,781 (December 22, 1989), III FERC
Stats. & Regs. para. 30,868 (1989); Order Nos. 566, 59 FR 32,885
(June 27, 1994), III FERC Stats. & Regs. para. 30,997 (1994); Order
No. 566-A, order on rehearing, 59 FR 52,896 (October 20, 1994), 69
FERC para. 61,044 (1994); Order No. 566-B, order on rehearing, 59 FR
65,707 (December 21, 1994), 69 FERC para. 61,334 (1994); appeal
docketed, Conoco, Inc. v. FERC, D.C. Cir. No. 94-1745 (December 13,
1994).
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As we stated in the RIN Notice,
Any requirement we establish must have safeguards to ensure that
public utilities owning and/or controlling transmission facilities
use the same procedures and meet the same substantive requirements
when they arrange transmission to support their wholesale sales and
purchases as are required for third parties. Further, we expect that
each public utility (or a control area operator acting as its agent)
that provides transmission service must, at a minimum, give its
customers electronic access in real time to information on
transmission capacity availability, ancillary services, scheduling
of power transfers, economic dispatch, current operating and
economic conditions, system reliability, and responses to system
conditions * * *
This means that public utilities or their agents must give
competitors and other users of the transmission system access to the
same information available to the public utility personnel who trade
(sell or purchase) power in the wholesale market, and at the same
time. Moreover, this information cannot be declared privileged (and
kept from competitors) if it is available to the company's own
employees who trade wholesale power. Thus, if a utility wishes to
keep this information confidential, it must assign control over this
information to employees whose duties do not involve trading in
wholesale power, and it must implement procedures to ensure that the
traders do not get access to the information unless and until that
information becomes public. The Commission invites parties to
comment on the best way to implement these requirements * * *
In response to this discussion and the accompanying request for
comments, the comments (in preparation for the technical conference)
debated how the control room could be functionally unbundled.
Currently, marketing and transmission functions are performed in the
same control room and sometimes these functions are performed by the
same people. However, same-time access to transmission information
means that, somehow, these functions must be separated. A related
matter that we are concerned about is the potential for informal
communication among colleagues if utility traders have preferred access
to limited access control rooms and buildings.
In discussing this issue, the commenters asked--how much separation
is enough? They wondered whether the Commission would set requirements
for separating marketing and transmission functions and, if so, what
those requirements would be. Commenters came down on both sides of this
issue. The East Texas Cooperatives and the Ohio PUC believe that
separation is essential. American Electric Power points out that
requiring the transmitting utility's marketing personnel to use only
that transmission information posted on a RIN would be a powerful
incentive for utilities to provide adequate disclosure on the RINs (or
else the marketing employees couldn't properly do their jobs). El Paso
Electric and Houston L&P are concerned about the reliability
consequences of separating control room functions. NYSEG and Sierra
Pacific do not believe
[[Page 66197]]
that separating control room functions is needed.
Additionally, this issue was renewed by the power marketers, in the
discussion of non-consensus issues in the What Report and in separate
comments, where they argued that a lack of organizational separation
and the absence of formal standards of conduct similar to those the
Commission imposed on natural gas pipelines undermines their confidence
in functional unbundling and the RIN. In the absence of such standards,
the marketers request that voluminous supplemental information about
transactions be posted on the RINs.
To help ensure non-discriminatory access to information, the
Commission believes it is appropriate to impose standards of conduct
for Transmission Providers. Therefore, we are proposing standards that
would require Transmission Providers to separate their wholesale
merchant functions (i.e., purchases or sales for resale of electric
energy in interstate commerce) from their wholesale transmission system
operations and reliability functions, and that would further require
employees performing merchant functions to obtain access to information
on wholesale transmission services through the RIN, on the same basis
available to all other RIN users.
In deciding this issue, we have been influenced by the differing
views expressed by interested persons as to what conduct should be
deemed proper or improper, our experience in the gas industry, and the
generic nature of these issues. We have concluded that the industry
needs explicit guidelines on separating transmission and power trading
functions. In formulating proposed standards of conduct, our goal is to
prevent employees of the Transmission Provider that perform merchant
functions from having preferential access to any relevant information
about the Transmission Provider's wholesale transmission availability
and costs. In other words, those employees should not have access to
any relevant information that is not also available to all wholesale
transmission customers and potential wholesale transmission customers,
regardless of whether this information is obtained through access to
the control center, access to other locations or files, or through
informal communications.
Question 41. Are the standards of conduct proposed herein
sufficient? Should they be modified in any way?
Question 42. In particular, if the Commission in its final rule
requires functional unbundling of all transmission from generation,
how would these standards of conduct need to be modified? Would any
other organizational changes need to be made? Would any
modifications be needed with regard to ancillary services?
We note that, although formal rules prescribing standards of
conduct were deemed necessary in the natural gas industry, the
potential for improper communications between transmission and trading
personnel is even more of a concern for electric utilities than for gas
pipelines. Absent divestiture, transmission and power trading jobs will
be performed by individuals working for the same company (or corporate
group). These tasks have traditionally been done in the same control
room and, in some cases, are now being performed by the same person.
We believe that explicit guidance would be helpful to all
concerned. Transmission Providers will have a better idea of what
conduct is permissible and what is impermissible. Customer complaints
on preferential access should be minimized. Enforcement efforts by the
Commission will be easier when specific guidelines are available.
Additionally, to the extent this standard of conduct allays concerns
about improper conduct, it could reduce what information needs to be
posted on the RIN.
In the event that Transmission Providers are concerned that this
proposal somehow will impede system reliability, we invite them to
articulate their concerns in their comments by addressing the question
below.
Question 43. Would the Commission's proposed separation of
functions jeopardize system reliability? If so, what other mechanism
would provide wholesale transmission customers and potential
customers with assurance that they would be obtaining access to the
same information, at the same time, as that used by transmission
providers in making their own wholesale transmission purchasing
decisions?
F. Applicability
1. Non-Public Utility Transmission Providers
As with the requirements in the Open Access NOPR, the RINs
requirement applies only to public utilities. Issues relating to
potential gaps in the provision of comparable open access to wholesale
transmission services or access to transmission information due to the
fact that the requirements do not apply to non-public utilities will be
addressed in the Open Access rulemaking proceeding. Although the RINs
requirements would not apply to non-public utilities, the Commission
expects non-public utilities to provide comparable access to wholesale
transmission information under the reciprocity provision in the Open
Access rule pro forma tariffs.
In this regard, we also note our general authority under section
311 of the Federal Power Act, 16 USC Sec. 825j (1994), to secure
information (and conduct appropriate investigations) concerning, among
other things, the transmission of electric energy throughout the United
States, regardless of whether such transmission is otherwise subject to
our jurisdiction.
Question 45. The Commission requests comments on whether and to
what extent the Commission should exercise this statutory authority
to extend the RINs requirements to non-public utilities that own
and/or control facilities used for the transmission of electric
energy in interstate commerce.
Question 46. Should reciprocity require that a non-public
utility (such as a co-op or publicly-owned utility) have a RIN?
2. Public Utilities Having No Transmission Facilities With Commercial
Value
Some public utilities claim that none of their transmission
facilities that could be used to provide wholesale service has
commercial value that would justify the burden and expense of
developing and maintaining a RIN. Although the Commission would still
require same-time access to wholesale transmission and ancillary
service information, simpler means of satisfying this requirement may
be considered for utilities with wholesale transmission of little
commercial value.
Question 47. In light of the proposal in the How Report to use a
low cost Internet-based approach, the Commission requests specific
comments on circumstances in which the RINs requirements are
believed to be an unnecessary burden. Are there less burdensome ways
to meet the same-time access requirement in circumstances where the
utility's wholesale transmission facilities have little commercial
value? What criteria should the Commission use in determining
whether and when to relax the RINs requirements?
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),60 requires the
Commission to describe the impact a proposed rule would have on small
entities or to certify that the rule will not have a significant
economic impact on a substantial number of small entities. The entities
that would have to comply with the proposed rule are public utilities
and transmitting utilities that do not fall within RFA's definition of
[[Page 66198]]
small entities.61 Therefore, under section 605(b) of RFA, the
Commission hereby certifies that this proposed rule will not, if
promulgated, have a significant economic impact on small entities
within the meaning of RFA. Accordingly, no regulatory flexibility
analysis is required pursuant to section 603 of RFA.
\60\ 5 U.S.C. 601-612.
\61\ See 5 U.S.C. 601(3) and 601(6) and 15 U.S.C. 632(a).
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V. Environmental Statement
Commission regulations require that an environmental assessment or
an environmental impact statement be prepared for a Commission action
that may have a significant effect on the human environment.62
Although this regulation does not directly affect any physical
transmission facilities, but merely proposes the electronic posting by
computers of certain information about transmission availability and
prices, it nevertheless is being covered by the environmental impact
statement being prepared in the Open Access NOPR proceeding in Docket
Nos. RM95-8-000 and RM94-7-001. Thus, no separate environmental
assessment or environmental impact statement is being prepared for this
proposed rule.
\62\ Regulations Implementing National Environmental Policy Act,
Order No. 486, 52 FR 47897 (Dec. 17, 1987); 1986-90 Regs. Preambles
FERC Stats. & Regs. para. 30,783 (Dec. 10, 1987) (codified at 18 CFR
Part 380).
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VI. Information Collection Statement
There are approximately 328 public utilities, including marketers
and wholesale generation entities. The Commission estimates that
approximately 166 of these utilities own and/or control facilities used
for the transmission of electric energy in interstate commerce and thus
are subject to this proposal. However, since the operation of a RIN
will be closely associated with control areas, we assume that RINs will
be developed at the control area level and not by each public utility
that owns and/or controls interstate transmission facilities. We
estimate, therefore, that 84 respondents will be required to collect
information. We believe that this estimate is conservative because some
regions are likely to develop a region-wide RIN that will cover more
than one control area.
Information Collection Statement
Title: FERC-717, Real-Time Information Network Standards.
Action: Proposed Collection.
OMB Control No: None.
Respondents: Business or other for profit, including small
business.
Frequency of Responses: On Occasion.
Necessity of the information: The Notice of Proposed rulemaking
solicits public comments to respond to the uniform requirements for a
Real-time information network (RIN) established by the Commission to
ensure simultaneous access to information on transmission service. The
proposed requirements were developed after technical conferences with
industry to ensure that safeguards are installed to provide procedures
and substantive requirements for all parties seeking transmission
service. These requirements would support arrangements made for
wholesale sales and purchases for third parties. Public utilities and/
or their agents would give competitors and other users of the
transmission system access to same information available to the public
utility personnel who initiate the acquisition or disposition of power
in the wholesale market and at the same time. The Commission would use
the information to monitor the networks to ensure that potential
purchasers of transmission services obtain the services on a non-
discriminatory basis.
The Office of Management and Budget's (OMB) regulations,63
require OMB to approve certain information collection requirements
imposed by agency rule. The information collection requirements in the
proposed rule will be reported directly to transmission users and will
be subject to subsequent audit by the Commission. The distribution of
these data will help the Commission carry out its responsibilities
under Part II of the FPA.
\63\ 5 CFR 1320.11.
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The Commission is submitting notification of this proposed rule to
OMB. Interested persons may obtain information on the reporting
requirements by contacting the Federal Energy Regulatory Commission,
888 First Street, NE., Washington, DC 20426 [Attention Michael Miller,
Information Services Division, (202) 208-1415], and to the Office of
Management and Budget [Attention: Desk Officer for the Federal Energy
Regulatory Commission (202) 395-3087].
VII. Public Comment Procedure
This NOPR gives notice of our intention to add Part 37 to the
Commission's Regulations. As described in the discussion above, under
this proposal each Transmission Provider would be required to create
and participate in a RIN, to ensure that potential purchasers of
transmission services have access to information to enable them to
obtain open access transmission services on a non-discriminatory basis
from the Transmission Provider. Additionally, the proposal would
require public utilities to comply with standards of conduct designed
to prevent discriminatory practices and affiliate abuse.
Prior to taking final action on this proposed rulemaking, we are
inviting comments from interested persons on 47 specific questions
enumerated in the body of this order (and compiled in Attachment
``1''), on the proposed templates in Appendix ``C'' and, more
generally, on whether the Commission should proceed to promulgate this
proposal as a final rule. Additionally, the Commission invites comments
on any suggested changes or modifications to the proposal that would,
in the view of the commenter, improve the proposal, and if so, why.
Moreover, the Commission is not intending to allow the filing of reply
comments in this proceeding and, therefore, we also invite parties to
discuss why policy options advocated by other parties (as described in
the comments in preparation for the Technical Conference, the working
group reports, and in comments in response to the working group
reports), should not be adopted by the Commission.
The Commission invites interested persons to submit written
comments or other information concerning this proposed rulemaking and
the issues identified above. All comments in response to this notice
should be submitted to the Office of Secretary, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, and
should refer to Docket No. RM95-9-000. An original and fourteen (14)
copies of such comments should be filed with the Commission on or
before [insert date 45 days from the date of publication in the Federal
Register]. Additionally, a copy of the comments also should be
submitted to the Commission on computer diskette in Wordperfect 5.1 or
ASCII format.
All written submissions to this NOPR will be placed in the public
file and will be available for public inspection in the Commission's
Public Reference Room, 888 First Street, NE., Washington, DC 20426,
during regular business hours.
List of Subjects in 18 CFR Part 37
Real-Time Information Networks.
By direction of the Commission.
Lois D. Cashell,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
Title
[[Page 66199]]
18, Code of Federal Regulations, to add a new Part 37, as set forth
below.
PART 37--REAL-TIME INFORMATION NETWORKS AND STANDARDS OF CONDUCT
FOR PUBLIC UTILITIES
Sec.
37.1 Applicability.
37.2 Purpose.
37.3 Definitions.
37.4 Standardization of data sets and communication protocols.
37.5 Obligations of transmission providers.
37.6 Standards of conduct.
37.7 RIN uses.
37.8 Information requirements for transmission service.
37.9 Information to be posted on a RIN.
37.10 Posting and updating information on a RIN.
37.11 Posting of discounts.
37.12 Procedure for transmission providers to respond to customer
requests for transmission service.
37.13 Communicating denials of requests for service and
curtailments.
37.14 Auditing transmission service information.
37.15 Implementation schedule for rin requirements; phases.
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
Sec. 37.1 Applicability.
This part applies to any public utility that owns and/or controls
facilities used for the transmission of electric energy in interstate
commerce.
Sec. 37.2 Purpose.
The purpose of this part is to ensure that potential customers of
transmission service receive access to information that will enable
them to obtain open access transmission service on a non-discriminatory
basis from public utilities that own and/or control facilities used for
the transmission of wholesale electric energy in interstate commerce.
These rules require public utilities (or their agents) to create and
operate a real-time information network (RIN) that gives competitors
and other users of the transmission system access to the same
information available to the public utility personnel who trade (sell
or purchase) power in the wholesale market, and at the same time, so
that potential customers may obtain open access transmission service
that is comparable to that provided by transmission owning public
utilities to themselves.
Sec. 37.3 Definitions.
(a) Transmission Provider means any public utility that owns and/or
controls facilities used for the transmission of electric energy in
interstate commerce.
(b) Transmission Customer means any eligible customer (or its
designated agent) that executes a service agreement and/or receives
transmission service.
(c) Responsible Party means the Transmission Provider or a third
party to whom the Transmission Provider has delegated the
responsibility of meeting the requirements of this Part.
(d) Resellers means Transmission Customers who offer to sell
transmission capability they have purchased to other Transmission
Customers.
(e) Wholesale Merchant Function means the sale for resale or
purchase of electric energy in interstate commerce.
(f) Affiliate means:
(1) for any non-exempt wholesale generator public utility, another
person which controls, is controlled by, or is under common control
with such person;
(2) for any public utility that is an exempt wholesale generator,
as defined in section 2(a)(11) of the Public Utility Holding Company
Act of 1935, as amended.
Sec. 37.4 Standardization of data sets and communication protocols.
(a) A public utility subject to this Part must provide access on a
RIN to standardized information relevant to the availability of
transmission capability, prices, and other information (as described
elsewhere in this Part) pertaining to its transmission system; it must
also provide the ability to display, download and upload the
standardized information in compliance with standardized procedures and
protocols.
(b) The standardized information, procedures and protocols are
found in ``Standardized Data Sets and Communication Protocols,'' which
can be obtained from the Office of Public Information, Federal Energy
Regulatory Commission, 888 North Capitol Street NE, Washington, DC
20426.
Sec. 37.5 Obligations of Transmission Providers.
Each Transmission Provider is required to provide for the operation
of a RIN, either individually or jointly with other Transmission
Providers, in accordance with the requirements of this Part.
Sec. 37.6 Standards of conduct.
A public utility subject to this Part must conduct its business to
conform with the following standards:
(a) The employees of the public utility that are engaged in
wholesale merchant functions (i.e., wholesale purchases and sales for
resale of electric energy in interstate commerce) are prohibited from
also conducting transmission system operations and/or reliability
functions. The employees of the public utility that are engaged in
merchant functions also are prohibited from having preferential access
to the system control center and other facilities of the public utility
that differs from the access available to other wholesale transmission
customers or potential wholesale transmission customers. To the maximum
extent practicable, the employees of the public utility engaged in
transmission system operations must function independently of the
employees engaged in wholesale merchant functions and of the employees
of any affiliate of the public utility. Employees are not precluded
from transferring between departments as long as they do not conduct
both transmission system operations functions and wholesale merchant
functions or functions on behalf of any affiliate, and as long as these
standards of conduct are observed. Notices of any employee transfers to
or from transmission system operations must be posted on the RIN.
(b) When buying or selling power, employees of the public utility
that are engaged in wholesale merchant functions and employees of any
affiliate of the public utility must rely upon the same information
relied upon by the public utility's wholesale transmission customers
(i.e., the information posted on the RIN), and must not have
preferential access to any information about the public utility's
transmission system that is not available to all users of the RIN.
(c) Employees of the public utility that are engaged in wholesale
merchant functions and employees of any affiliate of the public utility
are prohibited from obtaining information about the public utility's
transmission system (including information about available transmission
capability, price, curtailments, ancillary services, etc.) through
communications conducted off the RIN or through access to information
not posted on the RIN.
(d) Employees of the public utility that are engaged in
transmission system operations or reliability functions may not
disclose to employees engaged in the wholesale merchant function or to
employees of any affiliate of the public utility any information
concerning the public utility's transmission system (including
information received from non-affiliates or information about available
transmission capability, price, curtailments, ancillary services, etc.)
through communications conducted off the RIN or through access to
information not posted on the RIN.
(e) If a public utility employee that is engaged in transmission
system
[[Page 66200]]
operations or reliability functions provides information not contained
on the RIN to an employee of the public utility that is engaged in the
merchant function or to an employee of an affiliate of the public
utility, the public utility must immediately post such information on
the RIN.
(f)(1) The employees of the public utility that are engaged in
transmission system operations must apply all tariff provisions
relating to the sale or purchase of wholesale transmission service in a
fair and impartial manner that treats all customers (including the
public utility's employees conducting wholesale merchant functions and
employees of any affiliate) alike, if these provisions involve
discretion.
(2) The public utility must keep a log, available for after-the-
fact Commission audit, detailing the circumstances and manner in which
it exercised its discretion under any terms of the tariff.
(g) The employees of the public utility that are engaged in
transmission system operations must strictly enforce all tariff
provisions relating to the sale or purchase of wholesale transmission
service, if these provisions do not provide for the use of discretion.
(h) The public utility may not, through its tariffs or otherwise,
give preference to wholesale purchases or sales made for itself or any
affiliate over the interests of any other wholesale customer in matters
relating to the sale or purchase of transmission service (including
issues of price, curtailments, scheduling, priority, etc.).
(i) If the public utility offers discounts to purchases made for
itself or for any affiliate, then it must, at the same time, offer on
the RIN comparable discounts for similar service to all transmission
customers.
(j) A public utility must maintain its books of account and records
separately from those of its affiliates.
(k) Within 60 days of publication of the final rule in the Federal
Register, the public utility must file with the Commission procedures
that will enable customers and the Commission to determine that the
public utility is in compliance with the requirements in this section.
Sec. 37.7 RIN uses.
The information posted on the RIN must allow transmission customers
to:
(a) make requests for transmission services offered by Transmission
Providers and the secondary market;
(b) view and download in standard formats, using standard
protocols, necessary information regarding the transmission system to
enable prudent business decision making;
(c) post, view, upload and download information regarding available
products and desired services;
(d) clearly identify the degree to which their transmission service
requests and/or schedules were denied or curtailed relative to those of
their competitors; and
(e) obtain access in electronic format information to support
available transmission capability calculations and historical
transmission service requests and schedules for various audit purposes.
Sec. 37.8 Information requirements for transmission service.
(a) The RIN must support the posting of available transmission
capability and the processing of requests electronically.
(b) The RIN must provide a mechanism to enable Transmission
Providers and Customers to promptly communicate requests and responses
to buy and sell available transmission capability offered under the
Transmission Providers' tariffs.
(c) For requests for transmission service to begin more than one
year from the date of the request, transmission studies need not be
performed to calculate ATCs, see Sec. 37.9(a)(1), until a request for
service is made. However, any planning or specifically requested
studies of the transmission network performed by the Transmission
Provider are to be available for download on the RIN. (This applies
only to those parts of customer-specific interconnection studies that
relate to network impacts).
Sec. 37.9 Information to be posted on a RIN.
(a) Five major types of information must be posted on the RIN: (1)
Available Transfer Capability (ATC) and Total Transfer Capability
(TTC);
(2) Transmission Providers' and Resellers' Transmission Service
Product Offerings and Prices;
(3) Transmission Providers' and Third Parties' Ancillary Service
Product Offerings and Prices;
(4) Specific Transmission Service Requests/Responses; and
(5) Informal Transmission Communications.
(b) Information on ATC and TTC shall be posted on the RIN in
accordance with the following: (1) The Transmission Provider must
inform all participants simultaneously in the wholesale market of the
transfer capability that is expected to be available on transmission
paths of the Transmission Provider's system and each paths' total
transfer capability. The Transmission Provider may delegate this
responsibility to a suitable third party who maintains that
Transmission Providers' RIN, such as an Independent System Operator, a
Regional Transmission Group, or a Regional Reliability Council.
(2) The ATC/TTC shall be calculated by the Responsible Party (the
Transmission Provider or its designated agent) according to
consistently applied industry practices, standards and criteria, or
criteria referenced in the Transmission Provider's transmission tariff.
(3) The amount of ATC posted shall be that amount that the
Responsible Party expects, in good faith, to be available on a specific
interface or Path in a specific direction, based on engineering
analysis and other information that is available to the Responsible
Party at the time of the posting. ATCs and TTCs as required in the
Posting Schedule must be posted in megawatts.
(4) Curtailment provisions associated with ATC must be incorporated
in the posting and must be made available to all Transmission
Customers.
(5) Transmission tariffs provide an application procedure for
Transmission Customers to request transmission service. At the time of
the application, and in accordance with the provisions of those
tariffs, the Transmission Provider (or its designated agent) must
inform the requester if the Transmission Provider can honor the
request. If not, the Transmission Provider must provide an explanation
of additional information that is needed to evaluate the request, or
identify prior pending requests that prevent acceptance of the full
request, regardless of the posted ATC/TTC values.
(6) The public utility must make all data used to calculate ATC/TTC
publicly available. This information must be available for download on
the RIN. The Transmission Provider must identify in its information
supporting its ATC calculations the limiting element and the cause of
the limit (e.g., thermal, voltage, stability). Whatever method is used
to determine capability must be applied consistently.
(c) Information on Transmission Providers' and Resellers'
Transmission Service Product Offerings and Prices must be posted on the
RIN in accordance with the following: (1) Transmission Providers and
Resellers must post the prices, terms and conditions associated with
the transmission products that they offer to Transmission Customers.
Transmission Providers must also provide a downloadable file of their
complete tariff in the format required in the Open Access rule.
[[Page 66201]]
(2) Customers who desire to resell capability must post the
relevant information to the same RIN node used by the primary provider
from whom the customer purchased the transmission capability.
(3) If the Transmission Customer resells its rights, in whole or in
part, it must promptly notify the Transmission Provider, or the
Transmission Provider's agent, of the new owner of the rights, any
subdivision of these rights that may have occurred, and any changes in
the terms and conditions of these rights, subject to the terms and
conditions of the tariff.
(d) Information on Transmission Providers' and Third Parties'
Ancillary Service Product Offerings and Prices must be posted on the
RIN in accordance with the following: (1) To the extent that the final
Open Access rule requires that a Transmission Provider offer ancillary
services, the Transmission Provider will post such offers on the RIN.
(2) Other entities offering the same ancillary services shall have
a comparable right to post offers on the RIN.
(e) All requests for transmission service must be made on the RIN.
Requests for transmission service and the responses to such requests
must be consistent with the Transmission Provider's tariff, the Federal
Power Act, and FERC regulations.
(f) RINs must permit the posting of informal communications related
to transmission services. Postings made in this section carry no
obligation to respond on the part of any market participant. These
communications include ``want ads'' and ``other communications''
(including using the RIN as a conference space or to provide messaging
services between RIN users).
Sec. 37.10 Posting and Updating Information on the RIN.
(a) Information about ATC/TTC posted on the RIN must be updated
when transactions are scheduled or end or as other system conditions
change that significantly affect TTC/ATC.
(b) Information must be posted in accordance with the following
procedures:
(1) All information will be date/time stamped;
(2) Firm (Non-Recallable) ATC/TTC must be posted:
(i) 24 hours per day for the next seven days, updating the next six
days and adding day seven at a reasonable pre-specified time daily;
(ii) On-peak and off-peak each day, for days 8-30, updating the
next 29 days and adding day 30 at a reasonable pre-specified time
daily;
(iii) By month, both on and off peak, for next 12 months updating
the next 11 months and adding month 12 on the 15th of each month;
(iv) Seasonal, by year, for years 1-10 (when planning and specially
requested transmission planning studies have been done).
(3) Non-Firm (Recallable) ATC/TTC must be posted:
(i) 24 hours per day for the next seven days, updating the next six
days and adding day seven at a reasonable pre-specified time daily;
(ii) On-peak and off-peak each day, for days 8-30, updating the
next 29 days and adding day 30 at a reasonable pre-specified time
daily;
(iii) Longer term by request.
(4) Daily updates must be posted at the same universal time for
each RIN.
Sec. 37.11 Posting of discounts.
A public utility, within 24 hours of agreeing to a discount (as
measured from when ATC must be adjusted in response to the
transaction), must post on the RIN and make available for download,
information describing the transaction (including price, quantity, and
any other relevant terms and conditions) and shall keep such
information posted on the RIN for at least 30 days. Thereafter, records
of the transaction must be retained and kept available for after-the-
fact Commission audit as part of the audit log required in section
37.14(e).
Sec. 37.12 Procedure for transmission providers to respond to customer
requests for transmission service.
The following steps must be followed in processing a transmission
service request, with the time for each step specified in the service
tariff:
(a) Requester: Submits request, including all information, as
required by the tariff.
(b) Provider: Places request in queue and posts applicable
information to the RIN. Posts request status and provides time/date
stamps throughout the process.
(c) Provider: Approves or denies request and provides reason, if
denied. Posts result to the RIN. Tenders service offer.
(d) Requester: Accepts service or withdraws request.
(e) Provider: If service accepted by Customer, adjusts ATC on the
RIN.
(f) Requester: Holds for scheduling, arranges scheduling, or
arranges for resale.
Sec. 37.13 Communicating denials of requests for service and
curtailments.
When requests for service are denied or transactions are curtailed,
the RIN must provide a mechanism for Transmission Providers to
communicate to transmission customers:
(a) the reason those transactions could not be accommodated; and
(b) the options, if any, for adjusting operation of the system to
increase transfer capability in order to accommodate those
transactions.
Sec. 37.14 Auditing Transmission Service Information.
(a) All RIN database transactions must be automatically copied,
recorded in a log file, and date/time stamped. If there is a question
concerning a transmission transaction, the log file may be downloaded
to identify the sequence of events concerning the transaction.
(b) Information on scheduling transmission service must be recorded
in a log file by the entity scheduling the transmission service and
must be available for download on the RIN by interested parties.
(c) Transmission Service Schedules must be posted to the RIN within
one week of the start of the transmission service schedule agreed upon
by the parties, unless otherwise reasonably requested by a party with a
legitimate concern.
(d) With the exception of discounted prices to its merchant
functions or to its affiliates, information about negotiations for
transmission do not have to be posted on the RIN unless an agreement
for transmission is reached. If an agreement is reached, the identity
of the parties, to a transmission transaction may be masked for 30 days
from the date when the transaction was agreed upon by the parties.
(e) Audit logs must be available for download on RINs for 90 days
and retained and available upon request for three years from the date
when they are first posted on a RIN.
Sec. 37.15 Implementation schedule for RIN requirements; phases.
The RIN(s) established under this part may be constructed in
phases, with the initial phase consisting of core requirements and
later phases increasing the number of functions, efficiency, and/or
effectiveness of the RIN. The first phase requirements must be
implemented as of the effective date of the Open Access rule.
Note: The following attachment will not appear in the Code of
Federal Regulations.
Attachment 1--(Questions for Comment)
Question 1. We seek comment on whether to continue to call the
information network
[[Page 66202]]
a ``RIN'' and, if not, what name should be used in its place.
Question 2. What issues associated with RIN standards would have
to be addressed if in an open access transmission environment the
electric power industry transitions to regional pricing, flow-based
pricing, or other pricing models that depart from the ``contract
path'' approach presently used for pricing electric transmission
service? How in structuring RIN standards can the Commission provide
for this contingency?
Question 3. The Commission requests comments on how best to post
the availability of network transmission service on the RIN. Should
Transmission Providers be required to post conservative estimates as
a preliminary matter that could be improved with additional study?
Is there an alternative service concept that is more suitable to
measurement than the current version of network service?
Question 4. The Commission requests comment on how to develop a
consistent, industry-wide method of calculating ATC/TTC.
Question 5. The Commission requests comments on ways to minimize
the burden of ATC calculations, while ensuring that wholesale
transmission customers have the information they need.
Question 6. The Commission requests comment on a standard format
for electronic submission of transmission tariffs to the Commission.
Question 7. The Commission requests comments on what information
about curtailments and denials of requests for service should be
communicated on a RIN.
Question 8. What specifications would be needed for information
about curtailments and denials of requests for service to be posted
in HTML displays and what specifications and formats would be needed
to standardize downloadable files?
Question 9. The Commission requests comment on where on the RIN
offers by other entities to provide ancillary service should be
placed. The What Report states that these offers should be posted in
the ``Informal Transmission Communications'' section of the RIN.
Would this place third party providers at a disadvantage relative to
the Transmission Provider?
Question 10. The Commission requests comments on how to
determine the costs associated with posting ancillary services on
the RIN.
Question 11. With regard to information about offers to provide
ancillary services provided by an entity other than the Transmission
Provider, what specifications would be needed for this information
to be posted in HTML displays and what specifications and formats
would be needed to standardize downloadable files?
Question 12. The Commission requests comment on whether there is
any additional information needed about ancillary services that is
not included in the list. Is any information on the list not needed?
Question 13. The Commission requests comment on how often
ancillary services information should be updated.
Question 14. The Commission seeks comment on whether all
transmission discounts should be posted on the RIN, or only those
provided to the Transmission Provider or its affiliates. Also, if
discounts are to be posted, when should this be done?
Question 15. Regarding information on affiliate discounts, what
specifications are needed for the information to be posted in HTML
displays and what specifications and formats are needed for the
downloadable files?
Question 16. The Commission requests comments on how the data
used in calculating ATC should be formatted. Should it be in free
form text, predefined tables, or comma delimited ASCII files? If in
free form text, should it be in plain ASCII text or in a word
processor format, such as WordPerfect or Word?
Question 17. The Commission requests comments on what is the
appropriate time delay for making supporting information on ATC
available. Should the Commission require specific formats for ATC
supporting data? If so, what should the formats be?
Question 18. To keep the amount of information on the RIN
manageable, the Commission requests comment on whether it is
sufficient to provide information only about planned outages and
return dates (for both planned and forced outages) for those system
elements deemed to have a direct and significant impact on ATC and
whether posting this information on the RIN would cause any
confidentiality concerns.
Question 19. Since many system elements can impact the ATC of a
path, how should ``significant and direct impact'' be defined? Is it
acceptable to limit the additional information to those system
elements for which nomograms, derating tables, and operating guides
have been developed?
Question 20. Are there any difficulties, technical or otherwise,
associated with posting actual path flows on the RIN?
Question 21. In cases where ATC of a path is a function of run
status of one or more generators, is it sufficient to post the
expected amount and date of changes to ATC on the RIN, corresponding
to the planned outage or return dates of generators.
Question 22. If operating guides, nomograms, operating studies,
and similar information are to be made available on the RIN for
download, would it be logical to expect that transmission customers
will be able to deduce the run status of those generators which
significantly and directly impact ATC by observing the changes to
ATC?
Question 23. The Commission requests comments on how
transmission studies should be formatted for download from the RIN.
Should they be in free form ASCII text, or in a word processor
format, such as WordPerfect or Word?
Question 24. The Commission requests comment on what information
should be considered commercially sensitive, the 30-day release
period proposal, and on how and when commercially sensitive
information should be released to concerned parties before the
standard release period? Should affiliated transactions be treated
differently?
Question 25. The Commission requests comments on how long the
implementation schedule should be for Phase I.
Question 26. Does the How Report define HTML displays and
downloadable files with sufficient clarity to permit public
utilities to implement Phase I such that the downloaded files and
HTML displays received by customers from each RIN have the same
definitions, etc.? If not, what clarifications are needed?
Similarly, are uploaded files sufficiently defined in the How
Report?
Question 27. The Commission invites comment generally, on the
issues discussed in Appendix ``C''.
Question 28. The Commission requests comments on how to ensure
that a customer will be able to choose a browser and use it to
access all RIN Nodes.
Question 29. The Commission requests comments on the use of
28,800 bits per second in the calculation of the minimum bandwidth
connection between a RIN Node and the Internet in the formula
appearing in the How Report.
Question 30. The Commission requests comments on the use of DUNs
numbers to identify RIN participants.
Question 31. The Commission requests comments on how to develop
common location codes for the electric power industry.
Question 32. The Commission requests comments on what data
compression technique or techniques should be made standard for all
RIN Nodes.
Question 33. The Commission requests comments on whether the
upload and download templates are sufficiently specified to be
functional and whether they are sufficiently specified to permit all
RIN Nodes to implement them in the same way.
Question 34. The Commission requests comments on whether it
should allow the recovery of reasonable expenses associated with
developing and running RINs by rolling these costs into wholesale
transmission rates. How should fees associated with RIN usage be
calculated and recovered?
Question 35. The Commission requests comments on whether it
should encourage a small number of RIN Nodes.
Question 36. The Commission requests comments on whether
transmission owning utilities should be required, in Phase I, to
provide connections to private networks.
Question 37. The Commission requests comments on whether the
following How Group Proposals are adequate:
(1) Transmission Service Information Availability: The most
recent Provider transmission service information, including updates
reflecting power system changes, shall be available to all Customers
within 5 minutes of its scheduled posting time at least 98 percent
of the time. The remaining 2 percent of the time the transmission
service information shall be available within 10 minutes of its
scheduled posting time;
(2) Notification of Posted or Changed Transmission Service
Information: Notification of transmission service information posted
or changed by a Provider shall be made available within 60 seconds
to all subscribed Customers who are currently connected; and
(3) Acknowledgment by the Transmission Service Information
Provider: Acknowledgment by the transmission service
[[Page 66203]]
information provider of the receipt of Customer purchase request/
response requests shall occur within 1 minute for Phase I. The
actual negotiations and agreements on purchase request/response
requests do not have time constraints. For Phase II, acknowledgment
shall occur within 30 seconds.
Question 38. The Commission requests comments on how to redesign
the download templates in Appeat primary and secondary capacity can
be offered through downloadable files that have the same format. The
Commission also requests comments on how primary and secondary
capacity can be displayed in the same tables on a RIN Node.
Question 39. What is the best way to handle the purchase request
and response process when primary and secondary capacity appear in
the same RIN displays and files?
Question 40. The Commission requests comments on how to
determine the costs associated with posting resales on the RIN?
Question 41. Are the standards of conduct proposed herein
sufficient? Should they be modified in any way?
Question 42. In particular, if the Commission in its final rule
requires functional unbundling of all transmission from generation,
how would these standards of conduct need to be modified? Would any
other organizational changes need to be made? Would any
modifications be needed with regard to ancillary services?
Question 43. Would the Commission's proposed separation of
functions jeopardize system reliability? If so, what other mechanism
would provide wholesale transmission customers and potential
customers with assurance that they would be obtaining access to the
same information, at the same time, as that used by Transmission
Providers in making their own wholesale transmission purchasing
decisions?
Question 44. Regarding information on affiliate discounts, what
specifications are needed for the information to be posted in HTML
displays and what specifications and formats are needed for the
downloadable files?
Question 45. The Commission requests comments on whether and to
what extent the Commission should exercise this statutory authority
to extend the RINs requirements to non-public utilities' that own
and/or control facilities used for the transmission of electric
energy in interstate commerce.
Question 46. Should reciprocity require that a non-public
utility (such as a co-op or publicly owned utility) have a RIN?
Question 47. In light of the proposal in the How Report to use a
low cost Internet-based approach, the Commission requests specific
comments on circumstances in which the RINs requirements are
believed to be an unnecessary burden. Are there less burdensome ways
to meet the same-time access requirement in circumstances where the
utility's wholesale transmission facilities have little commercial
value? What criteria should the Commission use in determining
whether and when to relax the RINs requirements?
[FR Doc. 95-30884 Filed 12-20-95; 8:45 am]
BILLING CODE 6717-01-P
