[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Notices]
[Pages 50572-50606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25332]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Open Access Transmission Service Tariff
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of proposed tariff.
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SUMMARY: The Western Area Power Administration (Western) is proposing
to adopt this Open Access Transmission Service Tariff (Tariff) in order
to be consistent with the Federal Energy Regulatory Commission (FERC)
Orders 888 and 888-A to the extent practicable and consistent with laws
applicable to Western's activities.
DATES: The comment period on the proposed Tariff will begin with the
publication of this notice in the Federal Register and will end October
27, 1997. To be assured of consideration, all written comments must be
received by the end of the comment period. Western will hold a combined
public information and public comment forum on the proposed Tariff
beginning at 1 p.m., October 7, 1997.
ADDRESSES: The combined public information and public comment forum
will be held at the Stapleton Plaza Hotel, 3333 Quebec Street, Denver,
Colorado.
All written comments regarding this proposed Tariff should be
directed to the following address: Mr. Robert C. Fullerton, A0600,
Corporate Communications, Western Area Power Administration, 1627 Cole
Boulevard, P.O. Box 3402, Golden, CO 80401-0098, Electronic Mail:
tariff@wapa.gov Facsimile: (303) 275-1290.
FOR FURTHER INFORMATION CONTACT:
Mr. Robert J. Harris, Power Marketing Manager, Upper Great Plains
Region, Western Area Power Administration, P.O. Box 35800, Billings, MT
59107-5800, (406) 247-7394
[[Page 50573]]
Mr. Dave Sabo, CRSP Manager, CRSP Customer Service Center, Western Area
Power Administration, P.O. Box 11606, Salt Lake City, UT 84147-0606,
(801) 524-5493
Mr. Anthony H. Montoya, Power Marketing Manager, Desert Southwest
Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ
85005-6457, (602) 352-2789
Mr. James D. Keselburg, Power Marketing Manager, Rocky Mountain Region,
Western Area Power Administration, P.O. Box 3700, Loveland, CO 80539-
3003, (970) 490-7370
Ms. Zola Jackson, Power Marketing Manager, Sierra Nevada Region,
Western Area Power Administration, 114 Parkshore Drive, Folsom, CA
95630-4710, (916) 353-4421.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Procedures
II. Background
III. Issues Raised During the Development of this Proposed Tariff
IV. Summary of Changes from the FERC Pro Forma Tariff
V. Coordination with Adoption of Open Access Transmission Rates
I. Procedures
After all public comments have been considered, Western will
prepare a final Tariff and publish it in the Federal Register. Western
will submit the final Tariff to FERC under a nonjurisdictional docket
and will request a declaratory order that the Tariff meets FERC
comparability standards as set forth in FERC Orders 888 and 888-A.
Western will make necessary changes in response to the FERC declaratory
order and further comments and will then publish the revised final
Tariff in the Federal Register.
II. Background
Western was established pursuant to Section 302 of the Department
of Energy (DOE) Organization Act, Public Law 95-91, dated August 4,
1977. Western is generally a partial requirements power supplier that
markets and transmits Federal electric power in 15 central and western
States encompassing a geographic area of 3.38 million-square-kilometers
(1.3 million-square-miles). Western has four Regional Offices and one
Customer Service Center which market and transmit power generated by
various Federal projects. Nothing in the proposed Tariff is intended to
alter, amend, or abridge the statutory obligations of Western to market
Federal power and to repay the Federal investment in those Federal
projects.
FERC issued a Notice of Proposed Rulemaking (NOPR) for Open Access
Transmission Service, published at 60 FR 17662, on April 7, 1995. On
October 4, 1995, the Secretary of the Department of Energy (DOE)
adopted a Power Marketing Administration Open Access Transmission
Policy which stated that DOE supported the spirit and intent of the
NOPR and directed the Power Marketing Administrations to prepare
tariffs which would conform to the principles set forth in the FERC's
final rule. FERC issued its final rule, Order 888, published at 61 FR
21540 on May 10, 1996, and followed with Order 888-A, published at 62
FR 12273, on March 14, 1997.
In early 1996, Western began developing a Tariff Equivalent Package
(TEP) to comply with the Secretary's directive. A draft TEP, which was
designed as a Western-wide document that would contain Region-specific
rates and charges, was completed in July 1996 and sent to Western's
electric service customers, transmission-service customers, and other
interested parties for review and comment. Western accepted comments
through November 1996.
After evaluating comments, Western modified its original concept of
preparing a Western-wide TEP and began developing Regional Open Access
Transmission Service Guidelines (Regional Guidelines). These Regional
Guidelines contained service agreements consistent with the specific
conditions applicable to each Region. The resulting documents were sent
to electric service customers, transmission customers, and other
interested parties for review and comment in April 1997. The review
period for those documents ended in early June 1997. To date, customer
and interested party participation has been conducted informally.
Western will submit a single Tariff document to FERC under a
nonjurisdictional docket and request a declaratory order from FERC that
the Tariff meets the FERC comparability standards as set forth in FERC
Orders 888 and 888-A. Consistent with a single FERC filing, Western
decided to develop and file this single Tariff with appended schedules
and attachments. Western's Tariff includes Attachment J, Provisions
Specific to the Transmission Provider, and Attachment K, Authorities
and Obligations, which are specific to Western and are not found in
FERC Order 888-A, Exhibit B, Pro Forma Tariff.
III. Issues Raised During the Development of This Proposed Tariff
Participants in the informal review process raised numerous issues
about both versions of the draft documents. The following discussion
highlights the more significant issues and Western's responses as
incorporated into this proposed Tariff.
A. Issue: There is concern that some of Western's Regional Offices
may not offer Network Integration Transmission Service, hereafter
called network service, at this time. Some think that not providing
network service would probably mean that the Tariff would be of little
value to all existing transmission customers. They think this would
raise significant comparability issues since the service Western
provides itself is network service.
Response: In most cases, the service Western provides to its firm
power customers is not exactly network or point-to-point service.
Western will offer network service subject to available transfer
capability determined considering operating constraints, facility
limitations, and existing contractual obligations.
B. Issue: Some of Western's customers have expressed concern that
the combination of the network service provisions and the definitions
provided in Western's Tariff result in transmission being paid for both
as part of Western's power rates and again under Western's Tariff. The
Tariff does not clearly describe how this would be eliminated. A
Western customer's load and/or resources should be reduced to account
for Western's power contract commitment to the customer. Similarly, the
definition of Network Customer should include the possibility that a
Network Customer may also be a Federal customer as defined in
Attachment K.
Response: FERC recognized that existing power and transmission
arrangements represent a transitional problem as customers begin to
take service under the Pro Forma Tariff. FERC did not intend, nor does
Western, for a transmission provider to receive two payments for
providing service to the same portion of a transmission customer's
load. The current definition of Network Customer does not exclude the
possibility that a Network Customer may also be a Federal customer.
C. Issue: Some of Western's customers encouraged Western to reserve
its transmission capability to serve future load growth needs of its
customers, including direct-service customers. Some of Western's firm
power customers also requested that Western
[[Page 50574]]
identify its allocations to customers as Native Load in the Tariff.
Response: Western's customers with point-to-point transmission
service may request increased reservations of point-to-point
transmission to accommodate specified amounts of anticipated load
growth of the customer. Where Western is able to provide network
service, Western intends to meet anticipated load growth; however,
Western's ability to construct additional transmission facilities to
accommodate Network Customer load growth may be limited by
appropriations or advance customer funding. Western will adhere to the
transmission procedures set forth in its final Tariff for all requests
for transmission service. Western has defined firm power and project
use customers as Federal customers in Attachment K to the Tariff and
will treat them in a manner analogous to the treatment of Native Load
Customers of public utilities.
D. Issue: Why does Western require advancement of funds?
Response: Under present legislation, Western cannot use
appropriated funds to do work for others and is prohibited from
entering into contracts that obligate it to spend funds it does not
have.
E. Issue: Western should be proposing service only over Federal
facilities. Western should not allow stranded cost recovery for non-
Federal facilities.
Response: Each Western Regional Office will design rates to include
the facilities used to provide transmission service under the Tariff.
The transmission system description may be modified in the Tariff to
correspond with results of some rate making processes. The terms of the
Tariff will allow stranded cost recovery when appropriate and
consistent with applicable Federal law.
F. Issue: Why cannot Western provide service without a contract?
Response: Western believes that the Pro Forma language, as modified
in Western's Tariff, provides adequate protection and is willing to
provide service without an executed Service Agreement in accordance
with the terms of sections 1.45, 15.3 and 29.1. These sections require
the Transmission customer to agree to abide by the Tariff terms and the
existing transmission rates. The Transmission Customer may also request
resolution under the provisions of Section 12, Dispute Resolution, of
the Tariff.
G. Issue: What process will Western use for future changes to the
Tariff?
Response: Western is providing notice of this proposal and an
opportunity to comment. The proposal may then be modified after
considering the comments received. Western will submit the final Tariff
to FERC under a nonjurisdictional docket and request a declaratory
order from FERC that the final Tariff meets FERC comparability
standards as set forth in FERC Orders 888 and 888-A. Interested parties
will have an opportunity to comment on the Tariff by following
appropriate procedures to intervene with FERC. Western will make
necessary changes in response to the FERC declaratory order and further
comments and will then publish the final revised Tariff in the Federal
Register.
H. Issue: Some of Western's customers believe that Western has a
statutory obligation to deliver power to its firm power customers and
therefore, should not they have a superior right? How will Western
address ``comparability'' issues?
Response: Service to be provided under the Tariff will not conflict
with any of Western's statutory obligations. There will be no need to
give Western's Federal customers a superior right to transmission since
adequate capacity will be reserved for the long-term delivery of the
Federal power through Western's process in determining its Available
Transfer Capability (ATC), which requires consideration of various
hydrological conditions and also considers the possible integration of
thermal or other generation sources. If there is additional capacity
above Western's needs for use by others, Western will make that
capacity available under the Tariff. This will ensure adequate long-
term transmission capacity for Federal purposes as well as allowing
Western the ability to provide comparable service to others.
I. Issue: Does Western intend that an entity seeking transmission
service across the entire Western system would need to have a service
agreement with each Western Regional Office and pay individual rates
for use of each office's system, leading to a pancaking of rates?
Response: More than one service agreement may be needed if an
entity wants service across the transmission facilities of more than
one project. Although a Regional Office may have responsibility for
more than one Project Transmission System, each Project has its own
separate transmission system and its own repayment obligation for that
specific system.
IV. Summary of Changes From the FERC Pro Forma Tariff
Western's proposed Tariff has 11 differences from the Pro Forma
Tariff that can be grouped into four major categories: Preservation of
Obligations, FERC Jurisdictional Issues, Financial Considerations, and
Legal Issues.
A. Preservation of Obligations
i. Transmission Provider and Transmission System
Western operates, manages, and has repayment responsibilities for
several independent transmission systems. Each system is managed as an
independent financial entity with discrete repayment responsibilities
under Federal statutes authorizing the individual transmission systems.
A Service Agreement for use of one system's facilities and payment of
one system's rate may not permit a transmission customer to use the
facilities of another system. There is no single Western-wide
transmission system or transmission rate. Each system is described in
Attachment K (Authorities and Obligations) to the proposed Tariff. The
definitions of Transmission Provider in Section 1.46 and Transmission
System in Section 1.49 are modified to recognize the independent nature
of the transmission facilities.
ii. Losses
Sections 15.7 and 28.5 of the Pro Forma Tariff are modified to
allow the applicable transmission losses percentages to be included in
the Region-specific Service Agreements. Western's Regional Offices
frequently modify transmission loss factors based on actual system
losses. Including losses in the Service Agreement provides a more
efficient means of modifying losses than modifying the Tariff.
Additionally, since Western has developed a Western-wide Tariff
applicable to all Regional Offices, including losses in the Service
Agreements is more appropriate.
iii. Federal Customers
Western markets generation to customers that are entitled by law to
receive preference in the sale of Federal power, as opposed to
jurisdictional public utilities that serve load requirements in a
geographical area. Western will treat preference customers in a manner
analogous to Native Load Customers of public utilities as defined in
the Pro Forma Tariff. Attachment K defines these Federal Customers.
iv. Ancillary Services
Section 3 of the proposed Tariff is modified to include the option
for Western to purchase Ancillary Services and pass through such costs
to the Transmission Customer. Western's hydroelectric power facilities
have limited capability to provide some Ancillary Services, due to
variable
[[Page 50575]]
hydrological conditions and environmental and operational constraints.
The existing long-term hydrological capability is allocated and under
contract to Federal Customers in accordance with the preference
provisions of Federal law.
B. FERC Jurisdictional Issues
Since Western is not a jurisdictional public utility, the Tariff
does not include reference to FERC approval of rates or service
agreements. Western does not file its rates or contracts under Section
205 and Section 206 of the Federal Power Act. Western's rates are
developed pursuant to Federal law, under public information and comment
procedures, that specify FERC's role in reviewing Power Marketing
Administration rates. Appropriate modifications reflecting Western's
rate setting process were made to Sections 1.10, 2.2, 9, 12.1, 13.3,
14.3, 20.3, 26, 27, 34, 34.5.
Western does not file executed service agreements with FERC or seek
FERC approval to terminate service. Appropriate modifications are made
to Sections 1.45, 7.3, 13.4, 14.4, 15.3, 17.6, 19.3, 19.4, 29.1, 29.5,
32.3, and 32.4 to reflect Western's status as a nonjurisdictional
utility.
C. Financial Considerations
i. Deposits for Transmission Service and Interest
Western's current financial system and procedures make collecting
and refunding deposits unduly burdensome. Western has replaced
provisions for collecting deposits with Completed Applications and
returning such deposits with interest under certain circumstances with
language that allows Western to assess a nondiscriminatory, non-
refundable application processing fee for all Transmission Service
requests. The processing fee reflects an average of staff wages and
benefits multiplied by the average time it takes to analyze and respond
to requests for service. FERC has found in other nonjurisdictional
tariffs that such an approach represents an administratively simple
alternative to the Pro Forma language. Also, Western will not pay
interest on deposits for studies or construction. Although Western may,
by contract, pay interest, Western cannot earn interest on funds
deposited into the U.S. Treasury. Western has also investigated escrow
accounts at commercial financial institutions and found that
administrative costs generally exceeded interest payments. Paying
interest on deposits would result in other ratepayers funding this
expense. Western does not believe this is an equitable method and will
not pay interest. Appropriate modifications are made to Sections 1.5,
17.3, 17.4, 17.6, 19.1, 19.4, 20.3, 22.2, 29.2, 32.1, 32.2, and 32.4.
ii. Advance Payment
There are several sections in the Pro Forma Tariff that require the
Transmission Provider to perform activities with reimbursement by the
Transmission Customer. Except for certain activities with other Federal
agencies, Western normally requires advance of funds to perform work
rather than receiving a reimbursement. Western is funded through
Congressional appropriations. The Anti-Deficiency Act and other
appropriations laws generally prohibit Federal agencies from expending
funds without having adequate funds in the Treasury and from expending
appropriations for purposes other than those for which Congress
appropriated the funds. Modifications are made to Sections 13.5, 15.4,
19.1, 19.2, 19.4, 19.8, 20.3, 23.2, 28.2, 31.5, 32.1, and 32.4.
iii. Net Billing and Bill Crediting
Western's proposed Tariff uses the Pro Forma Tariff language in
Section 7 (Billing and Payment). In addition, two provisions in
Attachment J provide for Net Billing and Bill Crediting. Net Billing
and Bill Crediting are two alternative financing mechanisms that
Western has a long-standing history of using. The Net Billing language
provides that charges for generation will not be offset with
transmission charges without mutual agreement. To be as consistent as
possible with the Pro Forma Tariff language, Western included these
Western-specific provisions in Attachment J.
D. Legal Issues
Western has adopted the Force Majeure language of the Pro Forma
Tariff. Western has added language assuring that both parties to a
contract will provide each other with written notice of any Force
Majeure and exercise due diligence in resolving the problem. Western
used the Pro Forma Tariff language for Indemnification with the
addition of a sentence to reflect the fact that Western's liability is
limited under Federal law and is determined in accordance with the
Federal Tort Claims Act. Appropriate modifications are made to Section
10.
i. Dispute Resolution
Western modified the dispute resolution provisions to recognize the
limits to Western's statutory and regulatory authority to submit
disputes to arbitration consistent with the Administrative Dispute
Resolution Act. Appropriate modifications are made to Section 12.
ii. Western-Specific Provisions
In Attachment J to the Tariff, Western incorporated several
provisions specific to Western, as a Federal agency. Section 1, Change
of Rates, provides for Western to change rates under the Schedules in
accordance with appropriate rate adjustment procedures and other
applicable Federal laws. This provision also provides an option for
transmission customers to terminate service within 90 days after the
effective date of a rate change. This language is necessary because
Western does not file its rate adjustments with FERC under the Federal
Power Act like jurisdictional public utilities. FERC's review of
Western's rates is provided under a different body of Federal law.
Section 2, Contingent Upon Appropriations, is required by Federal
law to be included in Federal contracts that will extend beyond the
current fiscal year. Section 3, Covenant Against Contingent Fees;
Section 4, Contract Work Hours and Safety Standards; Section 5, Equal
Opportunity Employment Practices; and Section 6, Use of Convict Labor,
are contract sections that are required by Federal law to be included
in all Federal contracts.
Section 7, Independent System Operator (ISO), recognizes that
Western is involved with the development of several independent system
operator (ISO) organizations and that the final Tariff may need
modifications as a result of a Western Regional Office joining an ISO.
Section 8 provides that the final Tariff does not grant any rights
to any Third Parties who are not a party to the Service Agreement.
Section 9, Entire Agreement, provides that the Service Agreement and
Tariff are the entire understanding between Western and the
Transmission Customer. Section 10, Power Supply Obligations, provides
that Western is not obligated to supply capacity and energy from
Federal generation sources during Interruptions or Curtailments other
than through the provisions of Operating Reserve Service and emergency
power. Generally, Federal generation is completely allocated and under
contract on a long-term basis to customers entitled to preference under
Federal law and may not be available for support of Transmission
Service.
Section 11, Federal Law, provides that the performance under the
Tariff and Service Agreement shall be governed by
[[Page 50576]]
applicable Federal law. This avoids disputes concerning state law and
Federal sovereignty. There may be other sections of the Tariff where
there may be potential conflicts between laws under which Western must
operate and FERC policy, such as Sections 27 and 31.2. Section 12,
Continuing Obligations, provides that obligations to make payments
survive termination of the Service Agreement until satisfied. Section
13, Net Billing, and Section 14, Bill Crediting, are discussed above.
V. Coordination With Adoption of Open Access Transmission Rates
Each of Western's Regional Offices is at a different point in the
process of developing Open Access Transmission Rates. DOE approval of
Western's rates is addressed in DOE Delegation Order No. 0204-108.
Western's procedures for public involvement for rate procedures are
covered in 10 CFR Part 903. Filing requirements and procedures for FERC
review of Power Marketing Administration rates are detailed in 18 CFR
Part 300. Until the Regional Offices complete the processes of placing
long-term rates in effect for the services to be provided under the
open-access tariff, they will use existing long-term rates when
applicable. Short-term rates may be placed in effect by Western's
Administrator and used when no rates exist for such services. Once the
long-term rates are in effect, they will supersede the short-term
rates.
The Sierra Nevada Region's (SNR) new rates for ancillary services
and transmission are proposed to become effective October 1, 1997, and
to be effective for a 5-year period ending September 30, 2002. The
proposed rate adjustment was initiated on May 5, 1996, and four
informal customer workshops were held. A Federal Register notice was
published on March 4, 1997 (62 FR 9763), officially announcing the
proposed rates, initiating the public consultation and comment period,
and announcing the public information and public comment forums. The
Federal Register notice was sent to all Central Valley Project
preference customers and interested parties, and a public information
and a public comment forum were held.
The Colorado River Storage Project Customer Service Center (CRSP
CSC) is currently conducting a public process to develop transmission
and ancillary service rates consistent with FERC Orders 888 and 888-A
to be used with its Tariff. The public comment period will conclude
September 23, 1997. The proposed effective date of the rates will be
April 1, 1998.
The Desert Southwest Region will begin a formal public involvement
process in September 1997 to develop transmission and ancillary service
rates consistent with FERC Orders 888 and 888-A to be used with the
Tariff. The proposed effective date of the rates will be April 1, 1998.
The Upper Great Plains Region (UGPR) has implemented short-term
Open Access Transmission Rates approved by Western's Administrator.
These transmission rates and ancillary service rates became effective
December 20, 1996, and will expire December 19, 1997. On March 28,
1997, by the mailing of an Advance Announcement of the transmission
rate adjustment for the Pick-Sloan Missouri Basin Program, Eastern
Division, a public process was initiated to establish long-term Open
Access Transmission Rates for the UGPR. UGPR has received comments from
that announcement and published its proposal in September 1997. The
proposed effective date is February 1, 1998.
The Rocky Mountain Region (RMR) will begin a formal public
involvement process in September 1997 to develop transmission and
ancillary service rates consistent with FERC Orders 888 and 888-A to be
used with the Tariff. The proposed effective date of the rates will be
April 1, 1998.
Subsequent changes to Regional Office Open Access Transmission
rates will be completed on a project-by-project basis using the public
involvement and FERC review processes outlined above.
Review Under Executive Order 12866
Western has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget (OMB) is required.
Regulatory Flexibility Analysis
Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601,
et seq.), each agency, when required by 5 U.S.C. 553 to publish a
proposed rule, is further required to prepare and make available for
public comment an initial regulatory flexibility analysis to describe
the impact of the proposed rule on small entities. The Acting
Administrator for Western certifies that Western's providing open
transmission access would not cause an adverse economic impact on a
substantial number of such entities. Since the proposed open-access
tariff is of limited applicability, no flexibility analysis is
required.
Review Under the Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1980, 44 U.S.C.
3501-3520, Western has received approval from OMB for the collection of
information in this rule under OMB control number 1910-0100.
Review Under the National Environmental Policy Act
Western will comply with the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), the Council on Environmental Quality
Regulations (40 CFR Parts 1500-1508), and the DOE NEPA Implementing
Procedures (10 CFR Part 1021) prior to adopting the Tariff.
AVAILABILITY OF INFORMATION: A redline/strikeout comparison of
Western's proposed Tariff to the FERC Pro Forma will be available from
the informational contacts listed previously or on the Internet at
http://www.wapa.gov.
Dated: September 17, 1997.
Michael S. Hacskaylo,
Acting Administrator.
Table of Contents
Part I. Common Service Provisions
1 Definitions
1.1 Ancillary Services
1.2 Annual Transmission Costs
1.3 Application
1.4 Commission
1.5 Completed Application
1.6 Control Area
1.7 Curtailment
1.8 Delivering Party
1.9 Designated Agent
1.10 Direct Assignment Facilities
1.11 Eligible Customer
1.12 Facilities Study
1.13 Firm Point-To-Point Transmission Service
1.14 Good Utility Practice
1.15 Interruption
1.16 Load Ratio Share
1.17 Load Shedding
1.18 Long-Term Firm Point-To-Point Transmission Service
1.19 Native Load Customers
1.20 Network Customer
1.21 Network Integration Transmission Service
1.22 Network Load
1.23 Network Operating Agreement
1.24 Network Operating Committee
1.25 Network Resource
1.26 Network Upgrades
1.27 Non-Firm Point-To-Point Transmission Service
1.28 Open Access Same-Time Information System
1.29 Part I
1.30 Part II
1.31 Part III
1.32 Parties
1.33 Point(s) of Delivery
1.34 Point(s) of Receipt
[[Page 50577]]
1.35 Point-To-Point Transmission Service
1.36 Power Purchaser
1.37 Receiving Party
1.38 Regional Transmission Group
1.39 Reserved Capacity
1.40 Service Agreement
1.41 Service Commencement Date
1.42 Short-Term Firm Point-To-Point Transmission Service
1.43 System Impact Study
1.44 Third-Party Sale
1.45 Transmission Customer
1.46 Transmission Provider
1.47 Transmission Provider's Monthly Transmission System Peak
1.48 Transmission Service
1.49 Transmission System
2 Initial Allocation and Renewal Procedures
2.1 Initial Allocation of Available Transmission Capability
2.2 Reservation Priority For Existing Firm Service Customers
3 Ancillary Services
3.1 Scheduling, System Control and Dispatch Service
3.2 Reactive Supply and Voltage Control from Generation Sources
Service
3.3 Regulation and Frequency Response Service
3.4 Energy Imbalance Service
3.5 Operating Reserve--Spinning Reserve Service
3.6 Operating Reserve--Supplemental Reserve Service
4 Open Access Same-Time Information System (OASIS)
5 Local Furnishing Bonds
5.1 Transmission Providers That Own Facilities Financed by
Local Furnishing Bonds
5.2 Alternative Procedures for Requesting Transmission Service
6 Reciprocity
7 Billing and Payment
7.1 Billing Procedures
7.2 Interest on Unpaid Balances
7.3 Customer Default
8 Accounting for the Transmission Provider's Use of the Tariff
8.1 Transmission Revenues
8.2 Study Costs and Revenues
9 Regulatory Filings
10 Force Majeure and Indemnification
10.1 Force Majeure
10.2 Indemnification
11 Creditworthiness
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures
12.2 Disputes
12.3 Rights Under The Federal Power Act
Part II. Point-To-Point Transmission Service
Preamble
13 Nature of Firm Point-To-Point Transmission Service
13.1 Term
13.2 Reservation Priority
13.3 Use of Firm Transmission Service by the Transmission
Provider
13.4 Service Agreements
13.5 Transmission Customer Obligations for Facility Additions
or Redispatch Costs
13.6 Curtailment of Firm Transmission Service
13.7 Classification of Firm Transmission Service
13.8 Scheduling of Firm Point-To-Point Transmission Service
14 Nature of Non-Firm Point-To-Point Transmission Service
14.1 Term
14.2 Reservation Priority
14.3 Use of Non-Firm Point-To-Point Transmission Service by the
Transmission Provider
14.4 Service Agreements
14.5 Classification of Non-Firm Point-To-Point Transmission
Service
14.6 Scheduling of Non-Firm Point-To-Point Transmission Service
14.7 Curtailment or Interruption of Service
15 Service Availability
15.1 General Conditions
15.2 Determination of Available Transmission Capability
15.3 Initiating Service in the Absence of an Executed Service
Agreement
15.4 Obligation to Provide Transmission Service that Requires
Expansion or Modification of the Transmission System
15.5 Deferral of Service
15.6 Other Transmission Service Schedules
15.7 Real Power Losses
16 Transmission Customer Responsibilities
16.1 Conditions Required of Transmission Customers
16.2 Transmission Customer Responsibility for Third-Party
Arrangements
17 Procedures for Arranging Firm Point-To-Point Transmission
Service
17.1 Application
17.2 Completed Application
17.3 Processing Fee
17.4 Notice of Deficient Application
17.5 Response to a Completed Application
17.6 Execution of a Service Agreement
17.7 Extensions for Commencement of Service
18 Procedures for Arranging Non-Firm Point-To-Point Transmission
Service
18.1 Application
18.2 Completed Application
18.3 Reservation of Non-Firm Point-To-Point Transmission
Service
18.4 Determination of Available Transmission Capability
19 Additional Study Procedures For Firm Point-To-Point Transmission
Service Requests
19.1 Notice of Need for System Impact Study
19.2 System Impact Study Agreement and Compensation
19.3 System Impact Study Procedures
19.4 Facilities Study Procedures
19.5 Facilities Study Modifications
19.6 Due Diligence in Completing New Facilities
19.7 Partial Interim Service
19.8 Expedited Procedures for New Facilities
20 Procedures if The Transmission Provider is Unable to Complete
New Transmission Facilities for Firm Point-To-Point Transmission
Service
20.1 Delays in Construction of New Facilities
20.2 Alternatives to the Original Facility Additions
20.3 Refund Obligation for Unfinished Facility Additions
21 Provisions Relating to Transmission Construction and Services on
the Systems of Other Utilities
21.1 Responsibility for Third-Party System Additions
21.2 Coordination of Third-Party System Additions
22 Changes in Service Specifications
22.1 Modifications On a Non-Firm Basis
22.2 Modifications On a Firm Basis
23 Sale or Assignment of Transmission Service
23.1 Procedures for Assignment or Transfer of Service
23.2 Limitations on Assignment or Transfer of Service
23.3 Information on Assignment or Transfer of Service
24 Metering and Power Factor Correction at Receipt and Delivery
Point(s)
24.1 Transmission Customer Obligations
24.2 Transmission Provider Access to Metering Data
24.3 Power Factor
25 Compensation for Transmission Service
26 Stranded Cost Recovery
27 Compensation for New Facilities and Redispatch Costs
Part III. Network Integration Transmission Service
Preamble
28 Nature of Network Integration Transmission Service
28.1 Scope of Service
28.2 Transmission Provider Responsibilities
28.3 Network Integration Transmission Service
28.4 Secondary Service
28.5 Real Power Losses
28.6 Restrictions on Use of Service
29 Initiating Service
29.1 Condition Precedent for Receiving Service
29.2 Application Procedures
29.3 Technical Arrangements to be Completed Prior to
Commencement of Service
29.4 Network Customer Facilities
29.5 This section is intentionally left blank
30 Network Resources
30.1 Designation of Network Resources
30.2 Designation of New Network Resources
30.3 Termination of Network Resources
30.4 Operation of Network Resources
30.5 Network Customer Redispatch Obligation
30.6 Transmission Arrangements for Network Resources Not
Physically Interconnected With The Transmission Provider
30.7 Limitation on Designation of Network Resources
30.8 Use of Interface Capacity by the Network Customer
30.9 Network Customer Owned Transmission Facilities
31 Designation of Network Load
[[Page 50578]]
31.1 Network Load
31.2 New Network Loads Connected With the Transmission Provider
31.3 Network Load Not Physically Interconnected with the
Transmission Provider
31.4 New Interconnection Points
31.5 Changes in Service Requests
31.6 Annual Load and Resource Information Updates
32 Additional Study Procedures For Network Integration Transmission
Service Requests
32.1 Notice of Need for System Impact Study
32.2 System Impact Study Agreement and Compensation
32.3 System Impact Study Procedures
32.4 Facilities Study Procedures
33 Load Shedding and Curtailments
33.1 Procedures
33.2 Transmission Constraints
33.3 Cost Responsibility for Relieving Transmission Constraints
33.4 Curtailments of Scheduled Deliveries
33.5 Allocation of Curtailments
33.6 Load Shedding
33.7 System Reliability
34 Rates and Charges
34.1 Monthly Demand Charge
34.2 Determination of Network Customer's Monthly Network Load
34.3 Determination of Transmission Provider's Monthly
Transmission System Load
34.4 Redispatch Charge
34.5 Stranded Cost Recovery
35 Operating Arrangements
35.1 Operation under The Network Operating Agreement
35.2 Network Operating Agreement
35.3 Network Operating Committee
Schedule 1
Scheduling, System Control and Dispatch Service
Schedule 2
Reactive Supply and Voltage Control from Generation Sources
Service
Schedule 3
Regulation and Frequency Response Service
Schedule 4
Energy Imbalance Service
Schedule 5
Operating Reserve--Spinning Reserve Service
Schedule 6
Operating Reserve--Supplemental Reserve Service
Schedule 7
Long-Term Firm and Short-Term Firm Point-to-Point Transmission
Service
Schedule 8
Non-Firm Point-to-Point Transmission Service
Attachment A
Form of Service Agreement For Firm Point-to-Point Transmission
Service
Attachment B
Form of Service Agreement For Non-Firm Point-to-Point
Transmission Service
Attachment C
Methodology to Assess Available Transmission Capability
Attachment D
Methodology for Completing a System Impact Study
Attachment E
Index of Point-to-Point Transmission Service Customers
Attachment F
Service Agreement For Network Integration Transmission Service
Attachment G
Network Operating Agreement
Attachment H
Annual Transmission Revenue Requirement For Network Integration
Transmission Service
Attachment I
Index of Network Integration Transmission Service Customers
Attachment J
Provisions Specific to the Transmission Provider
Attachment K
Transmission Provider Authorities and Obligations
I. Common Service Provisions
1 Definitions
1.1 Ancillary Services: Those services that are necessary to support
the transmission of capacity and energy from resources to loads while
maintaining reliable operation of the Transmission Provider's
Transmission System in accordance with Good Utility Practice.
1.2 Annual Transmission Costs: The total annual cost of the
Transmission System for purposes of Network Integration Transmission
Service shall be the amount specified in Attachment H until amended by
the Transmission Provider or modified by the Commission, pursuant to
Federal Law.
1.3 Application: A request by an Eligible Customer for transmission
service pursuant to the provisions of the Tariff.
1.4 Commission: The Federal Energy Regulatory Commission.
1.5 Completed Application: An Application that satisfies all of the
information and other requirements of the Tariff, including any
required application processing fee.
1.6 Control Area: An electric power system or combination of electric
power systems to which a common automatic generation control scheme is
applied in order to:
(1) Match, at all times, the power output of the generators within
the electric power system(s) and capacity and energy purchased from
entities outside the electric power system(s), with the load within the
electric power system(s);
(2) Maintain scheduled interchange with other Control Areas, within
the limits of Good Utility Practice;
(3) Maintain the frequency of the electric power system(s) within
reasonable limits in accordance with Good Utility Practice; and
(4) Provide sufficient generating capacity to maintain operating
reserves in accordance with Good Utility Practice.
1.7 Curtailment: A reduction in firm or non-firm transmission service
in response to a transmission capacity shortage as a result of system
reliability conditions.
1.8 Delivering Party: The entity supplying capacity and energy to be
transmitted at Point(s) of Receipt.
1.9 Designated Agent: Any entity that performs actions or functions on
behalf of the Transmission Provider, an Eligible Customer, or the
Transmission Customer required under the Tariff.
1.10 Direct Assignment Facilities: Facilities or portions of
facilities that are constructed by the Transmission Provider for the
sole use/benefit of a particular Transmission Customer requesting
service under the Tariff. Direct Assignment Facilities shall be
specified in the Service Agreement that governs service to the
Transmission Customer.
1.11 Eligible Customer: (i) Any electric utility (including the
Transmission Provider and any power marketer), Federal power marketing
agency, or any person generating electric energy for sale for resale is
an Eligible Customer under the Tariff. Electric energy sold or produced
by such entity may be electric energy produced in the United States,
Canada or Mexico. However, with respect to transmission service that
the Commission is prohibited from ordering by Section 212(h) of the
Federal Power Act, such entity is eligible only if the service is
provided pursuant to a state requirement that the Transmission Provider
offer the unbundled transmission service, or pursuant to a voluntary
offer of such service by the Transmission Provider. (ii) Any retail
customer taking unbundled transmission service pursuant to a state
requirement that the Transmission Provider offer the transmission
service, or pursuant to a voluntary offer of such service by the
Transmission Provider, is an Eligible Customer under the Tariff.
1.12 Facilities Study: An engineering study conducted by the
Transmission Provider to determine the required modifications to the
Transmission Provider's Transmission System, including the cost and
scheduled completion date for such modifications, that will be required
to provide the requested transmission service.
[[Page 50579]]
1.13 Firm Point-To-Point Transmission Service: Transmission Service
under this Tariff that is reserved and/or scheduled between specified
Points of Receipt and Delivery pursuant to Part II of this Tariff.
1.14 Good Utility Practice: Any of the practices, methods and acts
engaged in or approved by a significant portion of the electric utility
industry during the relevant time period, or any of the practices,
methods and acts which, in the exercise of reasonable judgment in light
of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost
consistent with good business practices, reliability, safety and
expedition. Good Utility Practice is not intended to be limited to the
optimum practice, method, or act to the exclusion of all others, but
rather to be acceptable practices, methods, or acts generally accepted
in the region.
1.15 Interruption: A reduction in non-firm transmission service due to
economic reasons pursuant to Section 14.7.
1.16 Load Ratio Share: Ratio of a Transmission Customer's Network Load
to the Transmission Provider's total load computed in accordance with
Sections 34.2 and 34.3 of the Network Integration Transmission Service
under Part III of the Tariff and calculated on a rolling twelve month
basis.
1.17 Load Shedding: The systematic reduction of system demand by
temporarily decreasing load in response to transmission system or area
capacity shortages, system instability, or voltage control
considerations under Part III of the Tariff.
1.18 Long-Term Firm Point-To-Point Transmission Service: Firm Point-
To-Point Transmission Service under Part II of the Tariff with a term
of one year or more.
1.19 Native Load Customers: The wholesale and retail power customers
of the Transmission Provider on whose behalf the Transmission Provider,
by statute, franchise, regulatory requirement, or contract, has
undertaken an obligation to construct and operate the Transmission
Provider's system to meet the reliable electric needs of such
customers.
1.20 Network Customer: An entity receiving transmission service
pursuant to the terms of the Transmission Provider's Network
Integration Transmission Service under Part III of the Tariff.
1.21 Network Integration Transmission Service: The transmission
service provided under Part III of the Tariff.
1.22 Network Load: The load that a Network Customer designates for
Network Integration Transmission Service under Part III of the Tariff.
The Network Customer's Network Load shall include all load served by
the output of any Network Resources designated by the Network Customer.
A Network Customer may elect to designate less than its total load as
Network Load but may not designate only part of the load at a discrete
Point of Delivery. Where a Eligible Customer has elected not to
designate a particular load at discrete points of delivery as Network
Load, the Eligible Customer is responsible for making separate
arrangements under Part II of the Tariff for any Point-To-Point
Transmission Service that may be necessary for such non-designated
load.
1.23 Network Operating Agreement: An executed agreement that contains
the terms and conditions under which the Network Customer shall operate
its facilities and the technical and operational matters associated
with the implementation of Network Integration Transmission Service
under Part III of the Tariff.
1.24 Network Operating Committee: A group made up of representatives
from the Network Customer(s) and the Transmission Provider established
to coordinate operating criteria and other technical considerations
required for implementation of Network Integration Transmission Service
under Part III of this Tariff.
1.25 Network Resource: Any designated generating resource owned,
purchased, or leased by a Network Customer under the Network
Integration Transmission Service Tariff. Network Resources do not
include any resource, or any portion thereof, that is committed for
sale to third parties or otherwise cannot be called upon to meet the
Network Customer's Network Load on a non-interruptible basis.
1.26 Network Upgrades: Modifications or additions to transmission-
related facilities that are integrated with and support the
Transmission Provider's overall Transmission System for the general
benefit of all users of such Transmission System.
1.27 Non-Firm Point-To-Point Transmission Service: Point-To-Point
Transmission Service under the Tariff that is reserved and scheduled on
an as-available basis and is subject to Curtailment or Interruption as
set forth in Section 14.7 under Part II of the Tariff. Non-Firm Point-
To-Point Transmission Service is available on a stand-alone basis for
periods ranging from one hour to one month.
1.28 Open Access Same-Time Information System (OASIS): The information
system and standards of conduct contained in Part 37 of the
Commission's regulations and all additional requirements implemented by
subsequent Commission orders dealing with OASIS.
1.29 Part I: Tariff Definitions and Common Service Provisions
contained in Sections 2 through 12.
1.30 Part II: Tariff Sections 13 through 27 pertaining to Point-To-
Point Transmission Service in conjunction with the applicable Common
Service Provisions of Part I and appropriate Schedules and Attachments.
1.31 Part III: Tariff Sections 28 through 35 pertaining to Network
Integration Transmission Service in conjunction with the applicable
Common Service Provisions of Part I and appropriate Schedules and
Attachments.
1.32 Parties: The Transmission Provider and the Transmission Customer
receiving service under the Tariff.
1.33 Point(s) of Delivery: Point(s) on the Transmission Provider's
Transmission System where capacity and energy transmitted by the
Transmission Provider will be made available to the Receiving Party
under Part II of the Tariff. The Point(s) of Delivery shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.34 Point(s) of Receipt: Point(s) of interconnection on the
Transmission Provider's Transmission System where capacity and energy
will be made available to the Transmission Provider by the Delivering
Party under Part II of the Tariff. The Point(s) of Receipt shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.35 Point-To-Point Transmission Service: The reservation and
transmission of capacity and energy on either a firm or non-firm basis
from the Point(s) of Receipt to the Point(s) of Delivery under Part II
of the Tariff.
1.36 Power Purchaser: The entity that is purchasing the capacity and
energy to be transmitted under the Tariff.
1.37 Receiving Party: The entity receiving the capacity and energy
transmitted by the Transmission Provider to Point(s) of Delivery.
[[Page 50580]]
1.38 Regional Transmission Group (RTG): A voluntary organization of
transmission owners, transmission users and other entities approved by
the Commission to efficiently coordinate transmission planning (and
expansion), operation and use on a regional (and interregional) basis.
1.39 Reserved Capacity: The maximum amount of capacity and energy that
the Transmission Provider agrees to transmit for the Transmission
Customer over the Transmission Provider's Transmission System between
the Point(s) of Receipt and the Point(s) of Delivery under Part II of
the Tariff. Reserved Capacity shall be expressed in terms of whole
megawatts on a sixty (60) minute interval (commencing on the clock
hour) basis.
1.40 Service Agreement: The initial agreement and any amendments or
supplements thereto entered into by the Transmission Customer and the
Transmission Provider for service under the Tariff.
1.41 Service Commencement Date: The date the Transmission Provider
begins to provide service pursuant to the terms of an executed Service
Agreement, or the date the Transmission Provider begins to provide
service in accordance with Section 15.3 or Section 29.1 under the
Tariff.
1.42 Short-Term Firm Point-To-Point Transmission Service: Firm Point-
To-Point Transmission Service under Part II of the Tariff with a term
of less than one year.
1.43 System Impact Study: An assessment by the Transmission Provider
of (i) the adequacy of the Transmission System to accommodate a request
for either Firm Point-To-Point Transmission Service or Network
Integration Transmission Service and (ii) whether any additional costs
may be incurred in order to provide transmission service.
1.44 Third-Party Sale: Any sale for resale in interstate commerce to a
Power Purchaser that is not designated as part of Network Load under
the Network Integration Transmission Service.
1.45 Transmission Customer: Any Eligible Customer (or its Designated
Agent) that (i) executes a Service Agreement, or (ii) requests in
writing that the Transmission Provider provide transmission service
without a Service Agreement, pursuant to section 15.3 of the Tariff.
This term is used in the Part I Common Service Provisions to include
customers receiving transmission service under Part II and Part III of
this Tariff.
1.46 Transmission Provider: The Regional Office of the Western Area
Power Administration (Western) which owns, controls, or operates the
facilities used for the transmission of electric energy in interstate
commerce and provides transmission service under the Tariff with which
the Transmission Customer has contracted to provide Transmission
Service (See Attachment K).
1.47 Transmission Provider's Monthly Transmission System Peak: The
maximum firm usage of the Transmission Provider's Transmission System
in a calendar month.
1.48 Transmission Service: Point-To-Point Transmission Service
provided under Part II of the Tariff on a firm and non-firm basis.
1.49 Transmission System: The facilities owned, controlled or operated
by the Transmission Provider that are used to provide transmission
service under Part II and Part III of the Tariff and are defined in
Attachment K to the Tariff.
2 Initial Allocation and Renewal Procedures
2.1 Initial Allocation of Available Transmission Capability: For
purposes of determining whether existing capability on the Transmission
Provider's Transmission System is adequate to accommodate a request for
firm service under this Tariff, all Completed Applications for new firm
transmission service received during the initial sixty (60) day period
commencing with the effective date of the Tariff will be deemed to have
been filed simultaneously. A lottery system conducted by an independent
party shall be used to assign priorities for Completed Applications
filed simultaneously. All Completed Applications for firm transmission
service received after the initial sixty (60) day period shall be
assigned a priority pursuant to Section 13.2.
2.2 Reservation Priority For Existing Firm Service Customers: Existing
firm service customers (wholesale requirements and transmission-only,
with a contract term of one-year or more), have the right to continue
to take transmission service from the Transmission Provider when the
contract expires, rolls over or is renewed. This transmission
reservation priority is independent of whether the existing customer
continues to purchase capacity and energy from the Transmission
Provider or elects to purchase capacity and energy from another
supplier. If at the end of the contract term, the Transmission
Provider's Transmission System cannot accommodate all of the requests
for transmission service, the existing firm service customer must agree
to accept a contract term at least equal to a competing request by any
new Eligible Customer and to pay the current rate for such service.
This transmission reservation priority for existing firm service
customers is an ongoing right that may be exercised at the end of all
firm contract terms of one-year or longer.
3 Ancillary Services
Ancillary Services are needed with transmission service to maintain
reliability within and among the Control Areas affected by the
transmission service. The Transmission Provider is required to provide
(or offer to arrange with the local Control Area operator as discussed
below), and the Transmission Customer is required to purchase, the
following Ancillary Services (i) Scheduling, System Control and
Dispatch, and (ii) Reactive Supply and Voltage Control from Generation
Sources.
The Transmission Provider is required, to the extent possible, to
offer to provide (or offer to arrange with the local Control Area
operator as discussed below) the following Ancillary Services only to
the Transmission Customer serving load within the Transmission
Provider's Control Area (i) Regulation and Frequency Response, (ii)
Energy Imbalance, (iii) Operating Reserve--Spinning, and (iv) Operating
Reserve--Supplemental. The Transmission Customer serving load within
the Transmission Provider's Control Area, is required to acquire these
Ancillary Services, whether from the Transmission Provider, from a
third party, or by self-supply. The Transmission Customer may not
decline the Transmission Provider's offer of Ancillary Services unless
it demonstrates that it has acquired the Ancillary Services from
another source. The Transmission Provider will offer to provide the
Transmission Customer Ancillary Services only to the extent surplus
Federal generation is available for such services. However, the
Transmission Provider may purchase Ancillary Services from others on
behalf of the Transmission Customer under the terms of an agreement
separate from the Service Agreement. The costs of such purchases on
behalf of a Transmission Customer will be passed directly through to
that Transmission Customer. The Transmission Customer must list in its
Application which Ancillary
[[Page 50581]]
Services it will purchase from the Transmission Provider.
If the Transmission Provider is a utility providing transmission
service, but is not a Control Area operator, it may be unable to
provide some or all of the Ancillary Services. In this case, the
Transmission Provider can fulfill its obligation to provide Ancillary
Services by acting as the Transmission Customer's agent to secure these
Ancillary Services from the Control Area operator. The Transmission
Customer may elect to (i) have the Transmission Provider act as its
agent, (ii) secure the Ancillary Services directly from the Control
Area operator, or (iii) secure the Ancillary Services (discussed in
Schedules 3, 4, 5, and 6) from a third party or by self-supply when
technically feasible.
The Transmission Provider shall specify the rate treatment and all
related terms and conditions in the event of an unauthorized use of
Ancillary Services by the Transmission Customer.
The specific Ancillary Services, prices and/or compensation methods
for each are described on the Schedules that are attached to and made a
part of the Tariff. Three principal requirements apply to discounts for
Ancillary Services provided by the Transmission Provider in conjunction
with its provision of transmission service as follows: (1) Any offer of
a discount made by the Transmission Provider must be announced to all
Eligible Customers solely by posting on the OASIS, (2) any customer-
initiated requests for discounts (including requests for use by one's
wholesale merchant or an affiliate's use) must occur solely by posting
on the OASIS, and (3) once a discount is negotiated, details must be
immediately posted on the OASIS. A discount agreed upon for an
Ancillary Service must be offered for the same period to all Eligible
Customers on the Transmission Provider's system. Sections 3.1 through
3.6 below list the six Ancillary Services.
3.1 Scheduling, System Control and Dispatch Service: The rates and/or
methodology are described in Schedule 1.
3.2 Reactive Supply and Voltage Control from Generation Sources
Service: The rates and/or methodology are described in Schedule 2.
3.3 Regulation and Frequency Response Service: Where applicable the
rates and/or methodology are described in Schedule 3.
3.4 Energy Imbalance Service: Where applicable the rates and/or
methodology are described in Schedule 4.
3.5 Operating Reserve--Spinning Reserve Service: Where applicable the
rates and/or methodology are described in Schedule 5.
3.6 Operating Reserve--Supplemental Reserve Service: Where applicable
the rates and/or methodology are described in Schedule 6.
4 Open Access Same-Time Information System (OASIS)
Terms and conditions regarding Open Access Same-Time Information
System and standards of conduct are set forth in 18 CFR 37 of the
Commission's regulations (Open Access Same-Time Information System and
Standards of Conduct for Public Utilities). In the event available
transmission capability as posted on the OASIS is insufficient to
accommodate a request for firm transmission service, additional studies
may be required as provided by this Tariff pursuant to Sections 19 and
32.
5 Local Furnishing Bonds
5.1 Transmission Providers That Own Facilities Financed by Local
Furnishing Bonds: This provision is applicable only to Transmission
Providers that have financed facilities for the local furnishing of
electric energy with tax-exempt bonds, as described in Section 142(f)
of the Internal Revenue Code (``local furnishing bonds'').
Notwithstanding any other provision of this Tariff, the Transmission
Provider shall not be required to provide transmission service to any
Eligible Customer pursuant to this Tariff if the provision of such
transmission service would jeopardize the tax-exempt status of any
local furnishing bond(s) used to finance the Transmission Provider's
facilities that would be used in providing such transmission service.
5.2 Alternative Procedures for Requesting Transmission Service:
(i) If the Transmission Provider determines that the provision of
transmission service requested by an Eligible Customer would jeopardize
the tax-exempt status of any local furnishing bond(s) used to finance
its facilities that would be used in providing such transmission
service, it shall advise the Eligible Customer within thirty (30) days
of receipt of the Completed Application.
(ii) If the Eligible Customer thereafter renews its request for the
same transmission service referred to in (i) by tendering an
application under Section 211 of the Federal Power Act, the
Transmission Provider, within ten (10) days of receiving a copy of the
Section 211 application, will waive its rights to a request for service
under Section 213(a) of the Federal Power Act and to the issuance of a
proposed order under Section 212(c) of the Federal Power Act. The
Commission, upon receipt of the Transmission Provider's waiver of its
rights to a request for service under Section 213(a) of the Federal
Power Act and to the issuance of a proposed order under Section 212(c)
of the Federal Power Act, shall issue an order under Section 211 of the
Federal Power Act. Upon issuance of the order under Section 211 of the
Federal Power Act, the Transmission Provider shall be required to
provide the requested transmission service in accordance with the terms
and conditions of this Tariff.
6 Reciprocity
A Transmission Customer receiving transmission service under this
Tariff agrees to provide comparable transmission service that it is
capable of providing to the Transmission Provider on similar terms and
conditions over facilities used for the transmission of electric energy
owned, controlled or operated by the Transmission Customer and over
facilities used for the transmission of electric energy owned,
controlled or operated by the Transmission Customer's corporate
affiliates. A Transmission Customer that is a member of a power pool or
Regional Transmission Group also agrees to provide comparable
transmission service to the members of such power pool and Regional
Transmission Group on similar terms and conditions over facilities used
for the transmission of electric energy owned, controlled or operated
by the Transmission Customer and over facilities used for the
transmission of electric energy owned, controlled or operated by the
Transmission Customer's corporate affiliates.
This reciprocity requirement applies not only to the Transmission
Customer that obtains transmission service under the Tariff, but also
to all parties to a transaction that involves the use of transmission
service under the Tariff, including the power seller, buyer and any
intermediary, such as a power marketer. This reciprocity requirement
also applies to any Eligible Customer that owns, controls or operates
transmission facilities that uses an intermediary, such as a power
marketer, to request transmission service under the Tariff. If the
Transmission Customer does not own, control or operate transmission
facilities, it must include
[[Page 50582]]
in its Application a sworn statement of one of its duly authorized
officers or other representatives that the purpose of its Application
is not to assist an Eligible Customer to avoid the requirements of this
provision.
7 Billing and Payment
7.1 Billing Procedures: Within a reasonable time after the first day
of each month, the Transmission Provider shall submit an invoice to the
Transmission Customer for the charges for all services furnished under
the Tariff during the preceding month. The invoice shall be paid by the
Transmission Customer within twenty (20) days of receipt. All payments
shall be made in immediately available funds payable to the
Transmission Provider, or by wire transfer to a bank named by the
Transmission Provider.
7.2 Interest on Unpaid Balances: Interest on any unpaid amounts
(including amounts placed in escrow) shall be calculated in accordance
with the methodology specified for interest on refunds in the
Commission's regulations at 18 CFR 35.19a(a)(2)(iii). Interest on
delinquent amounts shall be calculated from the due date of the bill to
the date of payment. When payments are made by mail, bills shall be
considered as having been paid on the date of receipt by the
Transmission Provider.
7.3 Customer Default: In the event the Transmission Customer fails,
for any reason other than a billing dispute as described below, to make
payment to the Transmission Provider on or before the due date as
described above, and such failure of payment is not corrected within
thirty (30) calendar days after the Transmission Provider notifies the
Transmission Customer to cure such failure, a default by the
Transmission Customer shall be deemed to exist. Within the same 30
calendar days after notice of failure to make payment, the Transmission
Customer shall have the right of appeal to the Administrator of
Western. The Transmission Provider shall submit its recommendation to
the Administrator for review and approval, but shall not terminate
service until the Administrator makes a determination on the
Transmission Customer's appeal. In the event of a billing dispute
between the Transmission Provider and the Transmission Customer, the
Transmission Provider will continue to provide service under the
Service Agreement as long as the Transmission Customer (i) continues to
make all payments not in dispute, and (ii) pays into an independent
escrow account the portion of the invoice in dispute, pending
resolution of such dispute. If the Transmission Customer fails to meet
these two requirements for continuation of service, then the
Transmission Provider may provide notice to the Transmission Customer
of its intention to suspend service in sixty (60) days, in accordance
with Commission policy.
8 Accounting for the Transmission Provider's Use of the Tariff
The Transmission Provider shall record the following amounts, as
outlined below.
8.1 Transmission Revenues: Include in a separate operating revenue
account or subaccount the revenues it receives from Transmission
Service when making Third-Party Sales under Part II of the Tariff.
8.2 Study Costs and Revenues: Include in a separate transmission
operating expense account or subaccount, costs properly chargeable to
expense that are incurred to perform any System Impact Studies or
Facilities Studies which the Transmission Provider conducts to
determine if it must construct new transmission facilities or upgrades
necessary for its own uses, including making Third-Party Sales under
the Tariff; and include in a separate operating revenue account or
subaccount the revenues received for System Impact Studies or
Facilities Studies performed when such amounts are separately stated
and identified in the Transmission Customer's billing under the Tariff.
9 Regulatory Filings
Nothing contained in the Tariff or any Service Agreement shall be
construed as affecting in any way the ability of any Party receiving
service under the Tariff to exercise its rights under the Federal Power
Act and pursuant to the Commission's rules and regulations promulgated
thereunder.
10 Force Majeure and Indemnification
10.1 Force Majeure: An event of Force Majeure means any act of God,
labor disturbance, act of the public enemy, war, insurrection, riot,
fire, storm or flood, explosion, breakage or accident to machinery or
equipment, any Curtailment, order, regulation or restriction imposed by
governmental military or lawfully established civilian authorities, or
any other cause beyond a Party's control. A Force Majeure event does
not include an act of negligence or intentional wrongdoing. Neither the
Transmission Provider nor the Transmission Customer will be considered
in default as to any obligation under this Tariff if prevented from
fulfilling the obligation due to an event of Force Majeure. However, a
Party whose performance under this Tariff is hindered by an event of
Force Majeure shall make all reasonable efforts to perform its
obligations under this Tariff. Either Party rendered unable to fulfill
any of its obligations under the Service Agreement by reason of an
uncontrollable force shall give prompt written notice of such fact to
the other Party and shall exercise due diligence to remove such
inability with all reasonable dispatch.
10.2 Indemnification: The Transmission Customer shall at all times
indemnify, defend, and save the Transmission Provider harmless from,
any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property,
demands, suits, recoveries, costs and expenses, court costs, attorney
fees, and all other obligations by or to third parties, arising out of
or resulting from the Transmission Provider's performance of its
obligations under this Tariff on behalf of the Transmission Customer,
except in cases of negligence or intentional wrongdoing by the
Transmission Provider. The liability of the Transmission Provider shall
be determined in accordance with the provisions of the Federal Tort
Claims Act, as amended.
11 Creditworthiness
For the purpose of determining the ability of the Transmission
Customer to meet its obligations related to service hereunder, the
Transmission Provider may require reasonable credit review procedures.
This review shall be made in accordance with standard commercial
practices.
In addition, the Transmission Provider may require the Transmission
Customer to provide and maintain in effect during the term of the
Service Agreement, an unconditional and irrevocable letter of credit as
security to meet its responsibilities and obligations under the Tariff,
or an alternative form of security proposed by the Transmission
Customer and acceptable to the Transmission Provider and consistent
with commercial practices established by the Uniform Commercial Code
that protects the Transmission Provider against the risk of non-
payment.
[[Page 50583]]
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures: Any dispute between a
Transmission Customer and the Transmission Provider involving
transmission service under the Tariff shall be referred to a designated
senior representative of the Transmission Provider and a senior
representative of the Transmission Customer for resolution on an
informal basis as promptly as practicable.
12.2 Disputes: Any dispute regarding service provided under the
Service Agreement will be resolved in a manner consistent with the
Administrative Dispute Resolution Act, as amended, subject to statutory
and regulatory limits on Western's authority to submit disputes to
arbitration.
12.3 Rights Under The Federal Power Act: Nothing in this section shall
restrict the rights of any party to file a Complaint with the
Commission under relevant provisions of the Federal Power Act.
Part II. Point-To-Point Transmission Service
Preamble
The Transmission Provider will provide Firm and Non-Firm Point-To-
Point Transmission Service pursuant to the applicable terms and
conditions of this Tariff. Point-To-Point Transmission Service is for
the receipt of capacity and energy at designated Point(s) of Receipt
and the transmission of such capacity and energy to designated Point(s)
of Delivery.
13 Nature of Firm Point-To-Point Transmission Service
13.1 Term: The minimum term of Firm Point-To-Point Transmission
Service shall be one day and the maximum term shall be specified in the
Service Agreement.
13.2 Reservation Priority: Long-Term Firm Point-To-Point Transmission
Service shall be available on a first-come, first-served basis i.e., in
the chronological sequence in which each Transmission Customer reserved
service. Reservations for Short-Term Firm Point-To-Point Transmission
Service will be conditional based upon the length of the requested
transaction. If the Transmission System becomes oversubscribed,
requests for longer term service may preempt requests for shorter term
service up to the following deadlines; one day before the commencement
of daily service, one week before the commencement of weekly service,
and one month before the commencement of monthly service. Before the
conditional reservation deadline, if available transmission capability
is insufficient to satisfy all Applications, an Eligible Customer with
a reservation for shorter term service has the right of first refusal
to match any longer term reservation before losing its reservation
priority. A longer term competing request for Short-Term Firm Point-To-
Point Transmission Service will be granted if the Eligible Customer
with the right of first refusal does not agree to match the competing
request within 24 hours (or earlier if necessary to comply with the
scheduling deadlines provided in Section 13.8) from being notified by
the Transmission Provider of a longer-term competing request for Short-
Term Firm Point-To-Point Transmission Service. After the conditional
reservation deadline, service will commence pursuant to the terms of
Part II of the Tariff. Firm Point-To-Point Transmission Service will
always have a reservation priority over Non-Firm Point-To-Point
Transmission Service under the Tariff. All Long-Term Firm Point-To-
Point Transmission Service will have equal reservation priority with
Native Load Customers and Network Customers. Reservation priorities for
existing firm service customers are provided in Section 2.2.
13.3 Use of Firm Transmission Service by the Transmission Provider:
The Transmission Provider will be subject to the rates, terms and
conditions of Part II of the Tariff when making Third-Party Sales under
agreements executed on or after November 25, 1997. The Transmission
Provider will maintain separate accounting, pursuant to Section 8, for
any use of the Point-To-Point Transmission Service to make Third-Party
Sales.
13.4 Service Agreements: The Transmission Provider shall offer a
standard form Firm Point-To-Point Transmission Service Agreement
(Attachment A) to an Eligible Customer when it submits a Completed
Application for Long-Term Firm Point-To-Point Transmission Service. The
Transmission Provider shall offer a standard form Firm Point-to-Point
Transmission Service Agreement (Attachment A) to an Eligible Customer
when it first submits a Completed Application for Short-Term Firm
Point-to-Point Transmission Service pursuant to the Tariff.
13.5 Transmission Customer Obligations for Facility Additions or
Redispatch Costs: In cases where the Transmission Provider determines
that the Transmission System is not capable of providing Firm Point-To-
Point Transmission Service without (1) degrading or impairing the
reliability of service to Native Load Customers, Network Customers and
other Transmission Customers taking Firm Point-To-Point Transmission
Service, or (2) interfering with the Transmission Provider's ability to
meet prior firm contractual commitments to others, the Transmission
Provider will be obligated to expand or upgrade its Transmission System
pursuant to the terms of Section 15.4. The Transmission Customer must
agree to compensate the Transmission Provider in advance for any
necessary transmission facility additions pursuant to the terms of
Section 27. To the extent the Transmission Provider can relieve any
system constraint more economically by redispatching the Transmission
Provider's resources than through constructing Network Upgrades, it
shall do so, provided that the Eligible Customer agrees to compensate
the Transmission Provider pursuant to the terms of Section 27. Any
redispatch, Network Upgrade or Direct Assignment Facilities costs to be
charged to the Transmission Customer on an incremental basis under the
Tariff will be specified in the Service Agreement or a separate
agreement, as appropriate, prior to initiating service.
13.6 Curtailment of Firm Transmission Service: In the event that a
Curtailment on the Transmission Provider's Transmission System, or a
portion thereof, is required to maintain reliable operation of such
system, Curtailments will be made on a non-discriminatory basis to the
transaction(s) that effectively relieve the constraint. If multiple
transactions require Curtailment, to the extent practicable and
consistent with Good Utility Practice, the Transmission Provider will
curtail service to Network Customers and Transmission Customers taking
Firm Point-To-Point Transmission Service on a basis comparable to the
curtailment of service to the Transmission Provider's Native Load
Customers. All Curtailments will be made on a non-discriminatory basis,
however, Non-Firm Point-To-Point Transmission Service shall be
subordinate to Firm Transmission Service. When the Transmission
Provider determines that an electrical emergency exists on its
Transmission System and
[[Page 50584]]
implements emergency procedures to Curtail Firm Transmission Service,
the Transmission Customer shall make the required reductions upon
request of the Transmission Provider. However, the Transmission
Provider reserves the right to Curtail, in whole or in part, any Firm
Transmission Service provided under the Tariff when, in the
Transmission Provider's sole discretion, an emergency or other
unforeseen condition impairs or degrades the reliability of its
Transmission System. The Transmission Provider will notify all affected
Transmission Customers in a timely manner of any scheduled
Curtailments.
13.7 Classification of Firm Transmission Service:
(a) The Transmission Customer taking Firm Point-To-Point
Transmission Service may (1) change its Receipt and Delivery Points to
obtain service on a non-firm basis consistent with the terms of Section
22.1 or (2) request a modification of the Points of Receipt or Delivery
on a firm basis pursuant to the terms of Section 22.2.
(b) The Transmission Customer may purchase transmission service to
make sales of capacity and energy from multiple generating units that
are on the Transmission Provider's Transmission System. For such a
purchase of transmission service, the resources will be designated as
multiple Points of Receipt, unless the multiple generating units are at
the same generating plant in which case the units would be treated as a
single Point of Receipt.
(c) The Transmission Provider shall provide firm deliveries of
capacity and energy from the Point(s) of Receipt to the Point(s) of
Delivery. Each Point of Receipt at which firm transmission capacity is
reserved by the Transmission Customer shall be set forth in the Firm
Point-To-Point Service Agreement for Long-Term Firm Transmission
Service along with a corresponding capacity reservation associated with
each Point of Receipt. Points of Receipt and corresponding capacity
reservations shall be as mutually agreed upon by the Parties for Short-
Term Firm Transmission. Each Point of Delivery at which firm
transmission capacity is reserved by the Transmission Customer shall be
set forth in the Firm Point-To-Point Service Agreement for Long-Term
Firm Transmission Service along with a corresponding capacity
reservation associated with each Point of Delivery. Points of Delivery
and corresponding capacity reservations shall be as mutually agreed
upon by the Parties for Short-Term Firm Transmission. The greater of
either (1) the sum of the capacity reservations at the Point(s) of
Receipt, or (2) the sum of the capacity reservations at the Point(s) of
Delivery shall be the Transmission Customer's Reserved Capacity. The
Transmission Customer will be billed for its Reserved Capacity under
the terms of Schedule 7. The Transmission Customer may not exceed its
firm capacity reserved at each Point of Receipt and each Point of
Delivery except as otherwise specified in Section 22. The Transmission
Provider shall specify the rate treatment and all related terms and
conditions applicable in the event that a Transmission Customer,
(including Third-Party Sales by the Transmission Provider) exceeds its
firm reserved capacity at any Point of Receipt or Point of Delivery.
13.8 Scheduling of Firm Point-To-Point Transmission Service: Schedules
for the Transmission Customer's Firm Point-To-Point Transmission
Service must be submitted to the Transmission Provider no later than
10:00 a.m. [or a reasonable time that is generally accepted in the
region and is consistently adhered to by the Transmission Provider] of
the day prior to commencement of such service. Schedules submitted
after 10:00 a.m. will be accommodated, if practicable. Hour-to-hour
schedules of any capacity and energy that is to be delivered must be
stated in increments of 1,000 kW per hour [or a reasonable increment
that is generally accepted in the region and is consistently adhered to
by the Transmission Provider]. Transmission Customers within the
Transmission Provider's service area with multiple requests for
Transmission Service at a Point of Receipt, each of which is under
1,000 kW per hour, may consolidate their service requests at a common
point of receipt into units of 1,000 kW per hour for scheduling and
billing purposes. Scheduling changes will be permitted up to twenty
(20) minutes [or a reasonable time that is generally accepted in the
region and is consistently adhered to by the Transmission Provider]
before the start of the next clock hour provided that the Delivering
Party and Receiving Party also agree to the schedule modification. The
Transmission Provider will furnish to the Delivering Party's system
operator, hour-to-hour schedules equal to those furnished by the
Receiving Party (unless reduced for losses) and shall deliver the
capacity and energy provided by such schedules. Should the Transmission
Customer, Delivering Party or Receiving Party revise or terminate any
schedule, such party shall immediately notify the Transmission
Provider, and the Transmission Provider shall have the right to adjust
accordingly the schedule for capacity and energy to be received and to
be delivered.
14 Nature of Non-Firm Point-To-Point Transmission Service
14.1 Term: Non-Firm Point-To-Point Transmission Service will be
available for periods ranging from one (1) hour to one (1) month.
However, a Purchaser of Non-Firm Point-To-Point Transmission Service
will be entitled to reserve a sequential term of service (such as a
sequential monthly term without having to wait for the initial term to
expire before requesting another monthly term) so that the total time
period for which the reservation applies is greater than one month,
subject to the requirements of Section 18.3.
14.2 Reservation Priority: Non-Firm Point-To-Point Transmission
Service shall be available from transmission capability in excess of
that needed for reliable service to Native Load Customers, Network
Customers and other Transmission Customers taking Long-Term and Short-
Term Firm Point-To-Point Transmission Service. A higher priority will
be assigned to reservations with a longer duration of service. In the
event the Transmission System is constrained, competing requests of
equal duration will be prioritized based on the highest price offered
by the Eligible Customer for the Transmission Service. Eligible
Customers that have already reserved shorter term service have the
right of first refusal to match any longer term reservation before
being preempted. A longer term competing request for Non-Firm Point-To-
Point Transmission Service will be granted if the Eligible Customer
with the right of first refusal does not agree to match the competing
request: (a) Immediately for hourly Non-Firm Point-To-Point
Transmission Service after notification by the Transmission Provider;
and, (b) within 24 hours (or earlier if necessary to comply with the
scheduling deadlines provided in Section 14.6) for Non-Firm Point-To-
[[Page 50585]]
Point Transmission Service other than hourly transactions after
notification by the Transmission Provider. Transmission service for
Network Customers from resources other than designated Network
Resources will have a higher priority than any Non-Firm Point-To-Point
Transmission Service. Non-Firm Point-To-Point Transmission Service over
secondary Point(s) of Receipt and Point(s) of Delivery will have the
lowest reservation priority under the Tariff.
14.3 Use of Non-Firm Point-To-Point Transmission Service by the
Transmission Provider: The Transmission Provider will be subject to the
rates, terms and conditions of Part II of the Tariff when making Third-
Party Sales under agreements executed on or after November 25, 1997.
The Transmission Provider will maintain separate accounting, pursuant
to Section 8, for any use of Non-Firm Point-To-Point Transmission
Service to make Third-Party Sales.
14.4 Service Agreements: The Transmission Provider shall offer a
standard form Non-Firm Point-To-Point Transmission Service Agreement
(Attachment D) to an Eligible Customer when it first submits a
Completed Application for Non-Firm Point-To-Point Transmission Service
pursuant to the Tariff.
14.5 Classification of Non-Firm Point-To-Point Transmission Service:
Non-Firm Point-To-Point Transmission Service shall be offered under
terms and conditions contained in Part II of the Tariff. The
Transmission Provider undertakes no obligation under the Tariff to plan
its Transmission System in order to have sufficient capacity for Non-
Firm Point-To-Point Transmission Service. Parties requesting Non-Firm
Point-To-Point Transmission Service for the transmission of firm power
do so with the full realization that such service is subject to
availability and to Curtailment or Interruption under the terms of the
Tariff. The Transmission Provider shall specify the rate treatment and
all related terms and conditions applicable in the event that a
Transmission Customer (including Third-Party Sales by the Transmission
Provider) exceeds its non-firm capacity reservation. Non-Firm Point-To-
Point Transmission Service shall include transmission of energy on an
hourly basis and transmission of scheduled short-term capacity and
energy on a daily, weekly or monthly basis, but not to exceed one
month's reservation for any one Application under Schedule 8.
14.6 Scheduling of Non-Firm Point-To-Point Transmission Service:
Schedules for Non-Firm Point-To-Point Transmission Service must be
submitted to the Transmission Provider no later than 2:00 p.m. [or a
reasonable time that is generally accepted in the region and is
consistently adhered to by the Transmission Provider] of the day prior
to commencement of such service. Schedules submitted after 2:00 p.m.
will be accommodated, if practicable. Hour-to-hour schedules of energy
that are to be delivered must be stated in increments of 1,000 kW per
hour [or a reasonable increment that is generally accepted in the
region and is consistently adhered to by the Transmission Provider].
Transmission Customers within the Transmission Provider's service area
with multiple requests for Transmission Service at a Point of Receipt,
each of which is under 1,000 kW per hour, may consolidate their
schedules at a common Point of Receipt into units of 1,000 kW per hour.
Scheduling changes will be permitted up to twenty (20) minutes [or a
reasonable time that is generally accepted in the region and is
consistently adhered to by the Transmission Provider] before the start
of the next clock hour provided that the Delivering Party and Receiving
Party also agree to the schedule modification. The Transmission
Provider will furnish to the Delivering Party's system operator, hour-
to-hour schedules equal to those furnished by the Receiving Party
(unless reduced for losses) and shall deliver the capacity and energy
provided by such schedules. Should the Transmission Customer,
Delivering Party or Receiving Party revise or terminate any schedule,
such party shall immediately notify the Transmission Provider, and the
Transmission Provider shall have the right to adjust accordingly the
schedule for capacity and energy to be received and to be delivered.
14.7 Curtailment or Interruption of Service: The Transmission Provider
reserves the right to Curtail, in whole or in part, Non-Firm Point-To-
Point Transmission Service provided under the Tariff for reliability
reasons when, an emergency or other unforeseen condition threatens to
impair or degrade the reliability of its Transmission System. The
Transmission Provider reserves the right to Interrupt, in whole or in
part, Non-Firm Point-To-Point Transmission Service provided under the
Tariff for economic reasons in order to accommodate (1) a request for
Firm Transmission Service, (2) a request for Non-Firm Point-To-Point
Transmission Service of greater duration, (3) a request for Non-Firm
Point-To-Point Transmission Service of equal duration with a higher
price, or (4) transmission service for Network Customers from non-
designated resources. The Transmission Provider also will discontinue
or reduce service to the Transmission Customer to the extent that
deliveries for transmission are discontinued or reduced at the Point(s)
of Receipt. Where required, Curtailments or Interruptions will be made
on a non-discriminatory basis to the transaction(s) that effectively
relieve the constraint, however, Non-Firm Point-To-Point Transmission
Service shall be subordinate to Firm Transmission Service. If multiple
transactions require Curtailment or Interruption, to the extent
practicable and consistent with Good Utility Practice, Curtailments or
Interruptions will be made to transactions of the shortest term (e.g.,
hourly non-firm transactions will be Curtailed or Interrupted before
daily non-firm transactions and daily non-firm transactions will be
Curtailed or Interrupted before weekly non-firm transactions).
Transmission service for Network Customers from resources other than
designated Network Resources will have a higher priority than any Non-
Firm Point-To-Point Transmission Service under the Tariff. Non-Firm
Point-To-Point Transmission Service over secondary Point(s) of Receipt
and Point(s) of Delivery will have a lower priority than any Non-Firm
Point-To-Point Transmission Service under the Tariff. The Transmission
Provider will provide advance notice of Curtailment or Interruption
where such notice can be provided consistent with Good Utility
Practice.
15 Service Availability
15.1 General Conditions: The Transmission Provider will provide Firm
and Non-Firm Point-To-Point Transmission Service over, on or across its
Transmission System to any Transmission Customer that has met the
requirements of Section 16.
15.2 Determination of Available Transmission Capability: A description
of the Transmission Provider's specific methodology for assessing
available transmission capability posted on the Transmission
[[Page 50586]]
Provider's OASIS (Section 4) is contained in Attachment C of the
Tariff. In the event sufficient transmission capability may not exist
to accommodate a service request, the Transmission Provider will
respond by performing a System Impact Study.
15.3 Initiating Service in the Absence of an Executed Service
Agreement: If the Transmission Provider and the Transmission Customer
requesting Firm or Non-Firm Point-To-Point Transmission Service cannot
agree on all the terms and conditions of the Point-To-Point Service
Agreement, the Transmission Provider shall commence providing
Transmission Service subject to the Transmission Customer agreeing to
(i) compensate the Transmission Provider at the existing rate placed in
effect pursuant to applicable Federal law and regulations , and (ii)
comply with the terms and conditions of the Tariff including paying the
appropriate processing fees in accordance with the terms of Section
17.3. If the Transmission Customer cannot accept all of the terms and
conditions of the offered Service Agreement, the Transmission Customer
may request resolution of the unacceptable terms and conditions under
Section 12, Dispute Resolution Procedures, of the Tariff. Any changes
resulting from the Dispute Resolution Procedures will be effective upon
the date of initial service.
15.4 Obligation to Provide Transmission Service that Requires
Expansion or Modification of the Transmission System: If the
Transmission Provider determines that it cannot accommodate a Completed
Application for Firm Point-To-Point Transmission Service because of
insufficient capability on its Transmission System, the Transmission
Provider will use due diligence to expand or modify its Transmission
System to provide the requested Firm Transmission Service, provided the
Transmission Customer agrees to compensate the Transmission Provider in
advance for such costs pursuant to the terms of Section 27. The
Transmission Provider will conform to Good Utility Practice in
determining the need for new facilities and in the design and
construction of such facilities. The obligation applies only to those
facilities that the Transmission Provider has the right to expand or
modify.
15.5 Deferral of Service: The Transmission Provider may defer
providing service until it completes construction of new transmission
facilities or upgrades needed to provide Firm Point-To-Point
Transmission Service whenever the Transmission Provider determines that
providing the requested service would, without such new facilities or
upgrades, impair or degrade reliability to any existing firm services.
15.6 Other Transmission Service Schedules: Eligible Customers
receiving transmission service under other agreements on file with the
Commission may continue to receive transmission service under those
agreements until such time as those agreements may be modified by the
Commission.
15.7 Real Power Losses: Real Power Losses are associated with all
transmission service. The Transmission Provider is not obligated to
provide Real Power Losses. The Transmission Customer is responsible for
replacing losses associated with all transmission service as calculated
by the Transmission Provider. The applicable Real Power Loss factors
are specified in the Service Agreements.
16 Transmission Customer Responsibilities
16.1 Conditions Required of Transmission Customers: Point-To-Point
Transmission Service shall be provided by the Transmission Provider
only if the following conditions are satisfied by the Transmission
Customer:
a. The Transmission Customer has pending a Completed Application
for service;
b. The Transmission Customer meets the creditworthiness criteria
set forth in Section 11;
c. The Transmission Customer will have arrangements in place for
any other transmission service necessary to effect the delivery from
the generating source to the Transmission Provider prior to the time
service under Part II of the Tariff commences;
d. The Transmission Customer agrees to pay for any facilities
constructed and chargeable to such Transmission Customer under Part II
of the Tariff, whether or not the Transmission Customer takes service
for the full term of its reservation; and
e. The Transmission Customer has executed a Point-To-Point Service
Agreement or has agreed to receive service pursuant to Section 15.3.
16.2 Transmission Customer Responsibility for Third-Party
Arrangements: Any scheduling arrangements that may be required by other
electric systems shall be the responsibility of the Transmission
Customer requesting service. The Transmission Customer shall provide,
unless waived by the Transmission Provider, notification to the
Transmission Provider identifying such systems and authorizing them to
schedule the capacity and energy to be transmitted by the Transmission
Provider pursuant to Part II of the Tariff on behalf of the Receiving
Party at the Point of Delivery or the Delivering Party at the Point of
Receipt. However, the Transmission Provider will undertake reasonable
efforts to assist the Transmission Customer in making such
arrangements, including without limitation, providing any information
or data required by such other electric system pursuant to Good Utility
Practice.
17 Procedures for Arranging Firm Point-To-Point Transmission Service
17.1 Application: A request for Firm Point-To-Point Transmission
Service for periods of one year or longer must contain a written
Application to appropriate Regional Office, as identified in Attachment
K to the Tariff, at least sixty (60) days in advance of the calendar
month in which service is to commence. The Transmission Provider will
consider requests for such firm service on shorter notice when
feasible. Requests for firm service for periods of less than one year
shall be subject to expedited procedures that shall be negotiated
between the Parties within the time constraints provided in Section
17.5. All Firm Point-To-Point Transmission Service requests should be
submitted by entering the information listed below on the Transmission
Provider's OASIS. Prior to implementation of the Transmission
Provider's OASIS, a Completed Application may be submitted by (i)
transmitting the required information to the Transmission Provider by
telefax, or (ii) providing the information by telephone over the
Transmission Provider's time recorded telephone line. Each of these
methods will provide a time-stamped record for establishing the
priority of the Application.
17.2 Completed Application: A Completed Application shall provide all
of the information included in 18 CFR 2.20 including but not limited to
the following:
(i) The identity, address, telephone number and facsimile number of
the entity requesting service;
[[Page 50587]]
(ii) A statement that the entity requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
(iii) The location of the Point(s) of Receipt and Point(s) of
Delivery and the identities of the Delivering Parties and the Receiving
Parties;
(iv) The location of the generating facility(ies) supplying the
capacity and energy and the location of the load ultimately served by
the capacity and energy transmitted. The Transmission Provider will
treat this information as confidential except to the extent that
disclosure of this information is required by the Tariff, by regulatory
or judicial order, for reliability purposes pursuant to Good Utility
Practice or pursuant to RTG transmission information sharing
agreements. The Transmission Provider shall treat this information
consistent with the standards of conduct contained in Part 37 of the
Commission's regulations;
(v) A description of the supply characteristics of the capacity and
energy to be delivered;
(vi) An estimate of the capacity and energy expected to be
delivered to the Receiving Party;
(vii) The Service Commencement Date and the term of the requested
Transmission Service;
(viii) The transmission capacity requested for each Point of
Receipt and each Point of Delivery on the Transmission Provider's
Transmission System; customers may combine their requests for service
in order to satisfy the minimum transmission capacity requirement;
The Transmission Provider shall treat this information consistent
with the standards of conduct contained in Part 37 of the Commission's
regulations.
17.3 Processing Fee: A Completed Application for Firm Point-To-Point
Transmission Service also shall include a non-refundable processing
fee. Such fee shall be applicable to all Transmission Customers for
firm Transmission Service requests of one year or longer. Individual
Transmission Provider processing fees will be calculated using the
number of estimated hours it will take to process an application and
will be set forth in Attachment K. This fee does not apply to costs to
complete System Impact Studies or Facility Studies or to add new
facilities.
17.4 Notice of Deficient Application: If an Application fails to meet
the requirements of the Tariff, the Transmission Provider shall notify
the entity requesting service within fifteen (15) days of receipt of
the reasons for such failure. The Transmission Provider will attempt to
remedy minor deficiencies in the Application through informal
communications with the Eligible Customer. If such efforts are
unsuccessful, the Transmission Provider shall return the Application.
Upon receipt of a new or revised Application that fully complies with
the requirements of Part II of the Tariff, the Eligible Customer shall
be assigned a new priority consistent with the date of the new or
revised Application.
17.5 Response to a Completed Application: Following receipt of a
Completed Application for Firm Point-To-Point Transmission Service, the
Transmission Provider shall make a determination of available
transmission capability as required in Section 15.2. The Transmission
Provider shall notify the Eligible Customer as soon as practicable, but
not later than thirty (30) days after the date of receipt of a
Completed Application either (i) if it will be able to provide service
without performing a System Impact Study or (ii) if such a study is
needed to evaluate the impact of the Application pursuant to Section
19.1. Responses by the Transmission Provider must be made as soon as
practicable to all completed applications (including applications by
its own merchant function) and the timing of such responses must be
made on a non-discriminatory basis.
17.6 Execution of a Service Agreement: Whenever the Transmission
Provider determines that a System Impact Study is not required and that
the service can be provided, it shall notify the Eligible Customer as
soon as practicable but no later than thirty (30) days after receipt of
the Completed Application. Where a System Impact Study is required, the
provisions of Section 19 will govern the execution of a Service
Agreement. Failure of an Eligible Customer to execute and return the
Service Agreement or request service without an executed Service
Agreement pursuant to Section 15.3, within fifteen (15) days after it
is tendered by the Transmission Provider will be deemed a withdrawal
and termination of the Application. Nothing herein limits the right of
an Eligible Customer to file another Application after such withdrawal
and termination.
17.7 Extensions for Commencement of Service: The Transmission Customer
can obtain up to five (5) one-year extensions for the commencement of
service. The Transmission Customer may postpone service by paying a
non-refundable annual reservation fee equal to one-month's charge for
Firm Transmission Service for each year or fraction thereof. If during
any extension for the commencement of service an Eligible Customer
submits a Completed Application for Firm Transmission Service, and such
request can be satisfied only by releasing all or part of the
Transmission Customer's Reserved Capacity, the original Reserved
Capacity will be released unless the following condition is satisfied.
Within thirty (30) days, the original Transmission Customer agrees to
pay the Firm Point-To-Point transmission rate for its Reserved Capacity
concurrent with the new Service Commencement Date. In the event the
Transmission Customer elects to release the Reserved Capacity, the
reservation fees or portions thereof previously paid will be forfeited.
18 Procedures for Arranging Non-Firm Point-To-Point Transmission
Service
18.1 Application: Eligible Customers seeking Non-Firm Point-To-Point
Transmission Service must submit a Completed Application to the
Transmission Provider. Applications should be submitted by entering the
information listed below on the Transmission Provider's OASIS. Prior to
implementation of the Transmission Provider's OASIS, a Completed
Application may be submitted by (i) transmitting the required
information to the Transmission Provider by telefax, or (ii) providing
the information by telephone over the Transmission Provider's time
recorded telephone line. Each of these methods will provide a time-
stamped record for establishing the service priority of the
Application.
18.2 Completed Application: A Completed Application shall provide all
of the information included in 18 CFR 2.20 including but not limited to
the following:
(i) The identity, address, telephone number and facsimile number of
the entity requesting service;
(ii) A statement that the entity requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
(iii) The Point(s) of Receipt and the Point(s) of Delivery;
(iv) The maximum amount of capacity
[[Page 50588]]
requested at each Point of Receipt and Point of Delivery; and
(v) The proposed dates and hours for initiating and terminating
transmission service hereunder.
In addition to the information specified above, when required to
properly evaluate system conditions, the Transmission Provider also may
ask the Transmission Customer to provide the following:
(vi) The electrical location of the initial source of the power to
be transmitted pursuant to the Transmission Customer's request for
service;
(vii) The electrical location of the ultimate load
The Transmission Provider will treat this information in (vi) and
(vii) as confidential at the request of the Transmission Customer
except to the extent that disclosure of this information is required by
this Tariff, by Federal Law or regulatory or judicial order, for
reliability purposes pursuant to Good Utility Practice, or pursuant to
RTG transmission information sharing agreements. The Transmission
Provider shall treat this information consistent with the standards of
conduct contained in Part 37 of the Commission's regulations.
18.3 Reservation of Non-Firm Point-To-Point Transmission Service:
Requests for monthly service shall be submitted no earlier than sixty
(60) days before service is to commence; requests for weekly service
shall be submitted no earlier than fourteen (14) days before service is
to commence, requests for daily service shall be submitted no earlier
than two (2) days before service is to commence, and requests for
hourly service shall be submitted no earlier than noon the day before
service is to commence. Requests for service received later than 2:00
p.m. prior to the day service is scheduled to commence will be
accommodated if practicable [or such reasonable times that are
generally accepted in the region and are consistently adhered to by the
Transmission Provider].
18.4 Determination of Available Transmission Capability: Following
receipt of a tendered schedule the Transmission Provider will make a
determination on a non-discriminatory basis of available transmission
capability pursuant to Section 15.2. Such determination shall be made
as soon as reasonably practicable after receipt, but not later than the
following time periods for the following terms of service (i) thirty
(30) minutes for hourly service, (ii) thirty (30) minutes for daily
service, (iii) four (4) hours for weekly service, and (iv) two (2) days
for monthly service. [Or such reasonable times that are generally
accepted in the region and are consistently adhered to by the
Transmission Provider].
19 Additional Study Procedures for Firm Point-To-Point Transmission
Service Requests
19.1 Notice of Need for System Impact Study: After receiving a request
for service, the Transmission Provider shall determine on a non-
discriminatory basis whether a System Impact Study is needed. A
description of the Transmission Provider's methodology for completing a
System Impact Study is provided in Attachment D. If the Transmission
Provider determines that a System Impact Study is necessary to
accommodate the requested service, it shall so inform the Eligible
Customer, as soon as practicable. In such cases, the Transmission
Provider shall within thirty (30) days of receipt of a Completed
Application, tender a System Impact Study Agreement pursuant to which
the Eligible Customer shall agree to advance funds to the Transmission
Provider for performing the required System Impact Study. For a service
request to remain a Completed Application, the Eligible Customer shall
execute the System Impact Study Agreement and return it to the
Transmission Provider within fifteen (15) days. If the Eligible
Customer elects not to execute the System Impact Study Agreement, its
application shall be deemed withdrawn.
19.2 System Impact Study Agreement and Compensation:
(i) The System Impact Study Agreement will clearly specify the
Transmission Provider's estimate of the actual cost, and time for
completion of the System Impact Study. The charge will not exceed the
actual cost of the study. In performing the System Impact Study, the
Transmission Provider shall rely, to the extent reasonably practicable,
on existing transmission planning studies. The Eligible Customer will
not be assessed a charge for such existing studies; however, the
Eligible Customer will be responsible for charges associated with any
modifications to existing planning studies that are reasonably
necessary to evaluate the impact of the Eligible Customer's request for
service on the Transmission System.
(ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation, a single
System Impact Study is sufficient for the Transmission Provider to
accommodate the requests for service, the costs of that study shall be
pro-rated among the Eligible Customers.
(iii) For System Impact Studies that the Transmission Provider
conducts on its own behalf, the Transmission Provider shall record the
cost of the System Impact Studies pursuant to Section 8.
19.3 System Impact Study Procedures: Upon receipt of an executed
System Impact Study Agreement, the Transmission Provider will use due
diligence to complete the required System Impact Study within a sixty
(60) day period. The System Impact Study shall identify any system
constraints and redispatch options, additional Direct Assignment
Facilities or Network Upgrades required to provide the requested
service. In the event that the Transmission Provider is unable to
complete the required System Impact Study within such time period, it
shall so notify the Eligible Customer and provide an estimated
completion date along with an explanation of the reasons why additional
time is required to complete the required studies. A copy of the
completed System Impact Study and related work papers shall be made
available to the Eligible Customer. The Transmission Provider will use
the same due diligence in completing the System Impact Study for an
Eligible Customer as it uses when completing studies for itself. The
Transmission Provider shall notify the Eligible Customer immediately
upon completion of the System Impact Study if the Transmission System
will be adequate to accommodate all or part of a request for service or
that no costs are likely to be incurred for new transmission facilities
or upgrades. In order for a request to remain a Completed Application,
within fifteen (15) days of completion of the System Impact Study the
Eligible Customer must execute a Service Agreement or request service
without an executed Service Agreement pursuant to Section 15.3, or the
Application shall be deemed terminated and withdrawn.
19.4 Facilities Study Procedures: If a System Impact Study indicates
that
[[Page 50589]]
additions or upgrades to the Transmission System are needed to supply
the Eligible Customer's service request, the Transmission Provider,
within thirty (30) days of the completion of the System Impact Study,
shall tender to the Eligible Customer a Facilities Study Agreement
pursuant to which the Eligible Customer shall agree to advance funds to
the Transmission Provider for performing the required Facilities Study.
For a service request to remain a Completed Application, the Eligible
Customer shall execute the Facilities Study Agreement and return it to
the Transmission Provider within fifteen (15) days. If the Eligible
Customer elects not to execute the Facilities Study Agreement, its
application shall be deemed withdrawn. Upon receipt of an executed
Facilities Study Agreement, the Transmission Provider will use due
diligence to complete the required Facilities Study within a sixty (60)
day period. If the Transmission Provider is unable to complete the
Facilities Study in the allotted time period, the Transmission Provider
shall notify the Transmission Customer and provide an estimate of the
time needed to reach a final determination along with an explanation of
the reasons that additional time is required to complete the study.
When completed, the Facilities Study will include a good faith estimate
of (i) the cost of Direct Assignment Facilities to be charged to the
Transmission Customer, (ii) the Transmission Customer's appropriate
share of the cost of any required Network Upgrades as determined
pursuant to the provisions of Part II of the Tariff, and (iii) the time
required to complete such construction and initiate the requested
service. The Transmission Customer shall pay the Transmission Provider
in advance the Transmission Customer's share of the costs of new
facilities or upgrades. The Transmission Customer shall have thirty
(30) days to execute a construction agreement and a Service Agreement
and provide the advance payment or request service without an executed
Service Agreement pursuant to Section 15.3 and provide the required
letter of credit or other form of security or the request will no
longer be a Completed Application and shall be deemed terminated and
withdrawn.
19.5 Facilities Study Modifications: Any change in design arising from
inability to site or construct facilities as proposed will require
development of a revised good faith estimate. New good faith estimates
also will be required in the event of new statutory or regulatory
requirements that are effective before the completion of construction
or other circumstances beyond the control of the Transmission Provider
that significantly affect the final cost of new facilities or upgrades
to be charged to the Transmission Customer pursuant to the provisions
of Part II of the Tariff.
19.6 Due Diligence in Completing New Facilities: The Transmission
Provider shall use due diligence to add necessary facilities or upgrade
its Transmission System within a reasonable time. The Transmission
Provider will not upgrade its existing or planned Transmission System
in order to provide the requested Firm Point-To-Point Transmission
Service if doing so would impair system reliability or otherwise impair
or degrade existing firm service.
19.7 Partial Interim Service: If the Transmission Provider determines
that it will not have adequate transmission capability to satisfy the
full amount of a Completed Application for Firm Point-To-Point
Transmission Service, the Transmission Provider nonetheless shall be
obligated to offer and provide the portion of the requested Firm Point-
To-Point Transmission Service that can be accommodated without addition
of any facilities and through redispatch. However, the Transmission
Provider shall not be obligated to provide the incremental amount of
requested Firm Point-To-Point Transmission Service that requires the
addition of facilities or upgrades to the Transmission System until
such facilities or upgrades have been placed in service.
19.8 Expedited Procedures for New Facilities: In lieu of the
procedures set forth above, the Eligible Customer shall have the option
to expedite the process by requesting the Transmission Provider to
tender at one time, together with the results of required studies, an
``Expedited Service Agreement'' pursuant to which the Eligible Customer
would agree to compensate the Transmission Provider in advance for all
costs incurred pursuant to the terms of the Tariff. In order to
exercise this option, the Eligible Customer shall request in writing an
expedited Service Agreement covering all of the above-specified items
within thirty (30) days of receiving the results of the System Impact
Study identifying needed facility additions or upgrades or costs
incurred in providing the requested service. While the Transmission
Provider agrees to provide the Eligible Customer with its best estimate
of the new facility costs and other charges that may be incurred, such
estimate shall not be binding and the Eligible Customer must agree in
writing to compensate the Transmission Provider in advance for all
costs incurred pursuant to the provisions of the Tariff. The Eligible
Customer shall execute and return such an Expedited Service Agreement
within fifteen (15) days of its receipt or the Eligible Customer's
request for service will cease to be a Completed Application and will
be deemed terminated and withdrawn.
20 Procedures if the Transmission Provider Is Unable To Complete New
Transmission Facilities for Firm Point-To-Point Transmission Service
20.1 Delays in Construction of New Facilities: If any event occurs
that will materially affect the time for completion of new facilities,
or the ability to complete them, the Transmission Provider shall
promptly notify the Transmission Customer. In such circumstances, the
Transmission Provider shall within thirty (30) days of notifying the
Transmission Customer of such delays, convene a technical meeting with
the Transmission Customer to evaluate the alternatives available to the
Transmission Customer. The Transmission Provider also shall make
available to the Transmission Customer studies and work papers related
to the delay, including all information that is in the possession of
the Transmission Provider that is reasonably needed by the Transmission
Customer to evaluate any alternatives.
20.2 Alternatives to the Original Facility Additions: When the review
process of Section 20.1 determines that one or more alternatives exist
to the originally planned construction project, the Transmission
Provider shall present such alternatives for consideration by the
Transmission Customer. If, upon review of any alternatives, the
Transmission Customer desires to maintain its Completed Application
subject to construction of the alternative facilities, it may request
the Transmission Provider to submit a revised Service Agreement for
Firm Point-To-Point Transmission Service. If the alternative approach
solely involves Non-Firm Point-To-Point Transmission Service, the
[[Page 50590]]
Transmission Provider shall promptly tender a Service Agreement for
Non-Firm Point-To-Point Transmission Service providing for the service.
In the event the Transmission Provider concludes that no reasonable
alternative exists and the Transmission Customer disagrees, the
Transmission Customer may seek relief under the dispute resolution
procedures pursuant to Section 12 or it may refer the dispute to the
Commission for resolution.
20.3 Refund Obligation for Unfinished Facility Additions: If the
Transmission Provider and the Transmission Customer mutually agree that
no other reasonable alternatives exist and the requested service cannot
be provided out of existing capability under the conditions of Part II
of the Tariff, the obligation to provide the requested Firm Point-To-
Point Transmission Service shall terminate and any advance payment made
by the Transmission Customer that is in excess of the costs incurred by
the Transmission Provider through the time construction was suspended
shall be returned. However, the Transmission Customer shall be
responsible for all prudently incurred costs by the Transmission
Provider through the time construction was suspended.
21 Provisions Relating to Transmission Construction and Services on
the Systems of Other Utilities
21.1 Responsibility for Third-Party System Additions: The Transmission
Provider shall not be responsible for making arrangements for any
necessary engineering, permitting, and construction of transmission or
distribution facilities on the system(s) of any other entity or for
obtaining any regulatory approval for such facilities. The Transmission
Provider will undertake reasonable efforts to assist the Transmission
Customer in obtaining such arrangements, including without limitation,
providing any information or data required by such other electric
system pursuant to Good Utility Practice.
21.2 Coordination of Third-Party System Additions: In circumstances
where the need for transmission facilities or upgrades is identified
pursuant to the provisions of Part II of the Tariff, and if such
upgrades further require the addition of transmission facilities on
other systems, the Transmission Provider shall have the right to
coordinate construction on its own system with the construction
required by others. The Transmission Provider, after consultation with
the Transmission Customer and representatives of such other systems,
may defer construction of its new transmission facilities, if the new
transmission facilities on another system cannot be completed in a
timely manner. The Transmission Provider shall notify the Transmission
Customer in writing of the basis for any decision to defer construction
and the specific problems which must be resolved before it will
initiate or resume construction of new facilities. Within sixty (60)
days of receiving written notification by the Transmission Provider of
its intent to defer construction pursuant to this section, the
Transmission Customer may challenge the decision in accordance with the
dispute resolution procedures pursuant to Section 12 or it may refer
the dispute to the Commission for resolution.
22 Changes in Service Specifications
22.1 Modifications On a Non-Firm Basis: The Transmission Customer
taking Firm Point-To-Point Transmission Service may request the
Transmission Provider to provide transmission service on a non-firm
basis over Receipt and Delivery Points other than those specified in
the Service Agreement (``Secondary Receipt and Delivery Points''), in
amounts not to exceed its firm capacity reservation, without incurring
an additional Non-Firm Point-To-Point Transmission Service charge or
executing a new Service Agreement, subject to the following conditions.
(a) Service provided over Secondary Receipt and Delivery Points
will be non-firm only, on an as-available basis and will not displace
any firm or non-firm service reserved or scheduled by third-parties
under the Tariff or by the Transmission Provider on behalf of its
Native Load Customers.
(b) The sum of all Firm and non-firm Point-To-Point Transmission
Service provided to the Transmission Customer at any time pursuant to
this section shall not exceed the Reserved Capacity in the relevant
Service Agreement under which such services are provided.
(c) The Transmission Customer shall retain its right to schedule
Firm Point-To-Point Transmission Service at the Receipt and Delivery
Points specified in the relevant Service Agreement in the amount of its
original capacity reservation.
(d) Service over Secondary Receipt and Delivery Points on a non-
firm basis shall not require the filing of an Application for Non-Firm
Point-To-Point Transmission Service under the Tariff. However, all
other requirements of Part II of the Tariff (except as to transmission
rates) shall apply to transmission service on a non-firm basis over
Secondary Receipt and Delivery Points.
22.2 Modifications On a Firm Basis: Any request by a Transmission
Customer to modify Receipt and Delivery Points on a firm basis shall be
treated as a new request for service in accordance with Section 17
hereof except that such Transmission Customer shall not be obligated to
pay any additional application processing fee if the capacity
reservation does not exceed the amount reserved in the existing Service
Agreement. While such new request is pending, the Transmission Customer
shall retain its priority for service at the existing firm Receipt and
Delivery Points specified in its Service Agreement.
23 Sale or Assignment of Transmission Service
23.1 Procedures for Assignment or Transfer of Service: Subject to
Commission approval of any necessary filings, a Transmission Customer
may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the
Assignee). The Transmission Customer that sells, assigns or transfers
its rights under its Service Agreement is hereafter referred to as the
Reseller. Compensation to the Reseller shall not exceed the higher of
(i) the original rate paid by the Reseller, (ii) the Transmission
Provider's maximum rate on file at the time of the assignment, or (iii)
the Reseller's opportunity cost capped at the Transmission Provider's
cost of expansion. If the Assignee does not request any change in the
Point(s) of Receipt or the Point(s) of Delivery, or a change in any
other term or condition set forth in the original Service Agreement,
the Assignee will receive the same services as did the Reseller and the
priority of service for the Assignee will be the same as that of the
Reseller. A Reseller should notify the Transmission Provider as soon as
possible after any assignment or transfer of service occurs but in any
event, notification must be provided prior to any provision of service
to the Assignee. The Assignee will be subject to all terms and
conditions of the Tariff. If the Assignee requests a change in service,
the reservation priority of service will be determined
[[Page 50591]]
by the Transmission Provider pursuant to Section 13.2.
23.2 Limitations on Assignment or Transfer of Service: If the Assignee
requests a change in the Point(s) of Receipt or Point(s) of Delivery,
or a change in any other specifications set forth in the original
Service Agreement, the Transmission Provider will consent to such
change subject to the provisions of the Tariff, provided that the
change will not impair the operation and reliability of the
Transmission Provider's generation, transmission, or distribution
systems. The Assignee shall compensate the Transmission Provider in
advance for performing any System Impact Study needed to evaluate the
capability of the Transmission System to accommodate the proposed
change and any additional costs resulting from such change. The
Reseller shall remain liable for the performance of all obligations
under the Service Agreement, except as specifically agreed to by the
Parties through an amendment to the Service Agreement.
23.3 Information on Assignment or Transfer of Service: In accordance
with Section 4, Resellers may use the Transmission Provider's OASIS to
post transmission capacity available for resale.
24 Metering and Power Factor Correction at Receipt and Delivery
Point(s)
24.1 Transmission Customer Obligations: Unless otherwise agreed, the
Transmission Customer shall be responsible for installing and
maintaining compatible metering and communications equipment to
accurately account for the capacity and energy being transmitted under
Part II of the Tariff and to communicate the information to the
Transmission Provider. Such equipment shall remain the property of the
Transmission Customer.
24.2 Transmission Provider Access to Metering Data: The Transmission
Provider shall have access to metering data, which may reasonably be
required to facilitate measurements and billing under the Service
Agreement.
24.3 Power Factor: Unless otherwise agreed, the Transmission Customer
is required to maintain a power factor within the same range as the
Transmission Provider pursuant to Good Utility Practices. The power
factor requirements are specified in the Service Agreement where
applicable.
25 Compensation for Transmission Service
Rates for Firm and Non-Firm Point-To-Point Transmission Service are
provided in the Schedules appended to the Tariff: Firm Point-To-Point
Transmission Service (Schedule 7); and Non-Firm Point-To-Point
Transmission Service (Schedule 8). The Transmission Provider shall use
Part II of the Tariff to make its Third-Party Sales. The Transmission
Provider shall account for such use at the applicable Tariff rates,
pursuant to Section 8.
26 Stranded Cost Recovery
The Transmission Provider may seek to recover stranded costs from
the Transmission Customer in a manner consistent with applicable
Federal law and regulations.
27 Compensation for New Facilities and Redispatch Costs
Whenever a System Impact Study performed by the Transmission
Provider in connection with the provision of Firm Point-To-Point
Transmission Service identifies the need for new facilities, the
Transmission Customer shall be responsible for such costs to the extent
consistent with Commission policy. Whenever a System Impact Study
performed by the Transmission Provider identifies capacity constraints
that may be relieved more economically by redispatching the
Transmission Provider's resources than by building new facilities or
upgrading existing facilities to eliminate such constraints, the
Transmission Customer shall be responsible for the redispatch costs to
the extent consistent with Commission policy.
Part III. Network Integration Transmission Service
Preamble
The Transmission Provider will provide Network Integration
Transmission Service pursuant to the applicable terms and conditions
contained in the Tariff and Service Agreement. Network Integration
Transmission Service allows the Network Customer to integrate,
economically dispatch and regulate its current and planned Network
Resources to serve its Network Load in a manner comparable to that in
which the Transmission Provider utilizes its Transmission System to
serve its Native Load Customers. Network Integration Transmission
Service also may be used by the Network Customer to deliver economy
energy purchases to its Network Load from non-designated resources on
an as-available basis without additional charge. Transmission service
for sales to non-designated loads will be provided pursuant to the
applicable terms and conditions of Part II of the Tariff.
28 Nature of Network Integration Transmission Service
28.1 Scope of Service: Network Integration Transmission Service is a
transmission service that allows Network Customers to efficiently and
economically utilize their Network Resources (as well as other non-
designated generation resources) to serve their Network Load located in
the Transmission Provider's Control Area and any additional load that
may be designated pursuant to Section 31.3 of the Tariff. The Network
Customer taking Network Integration Transmission Service must obtain or
provide Ancillary Services pursuant to Section 3.
28.2 Transmission Provider Responsibilities: The Transmission Provider
will plan, construct, operate and maintain its Transmission System in
accordance with Good Utility Practice in order to provide the Network
Customer with Network Integration Transmission Service over the
Transmission Provider's Transmission System. The Transmission Provider,
on behalf of its Native Load Customers, shall be required to designate
resources and loads in the same manner as any Network Customer under
Part III of the Tariff. This information must be consistent with the
information used by the Transmission Provider to calculate available
transmission capability. The Transmission Provider shall include the
Network Customer's Network Load in its Transmission System planning and
shall, consistent with Good Utility Practice, endeavor to construct and
place into service sufficient transmission capacity to deliver the
Network Customer's Network Resources to serve its Network Load on a
basis comparable to the Transmission Provider's delivery of its own
generating and purchased resources to its Native Load Customers. This
obligation to construct and place into service sufficient capacity to
deliver the Network Customer's Network Resources to serve its Network
Load is contingent upon the availability to Western of sufficient
appropriations, when needed, and the Transmission Customer's advanced
funds.
28.3 Network Integration Transmission Service: The Transmission
Provider will provide firm transmission service over its Transmission
System to the
[[Page 50592]]
Network Customer for the delivery of capacity and energy from its
designated Network Resources to service its Network Loads on a basis
that is comparable to the Transmission Provider's use of the
Transmission System to reliably serve its Native Load Customers.
28.4 Secondary Service: The Network Customer may use the Transmission
Provider's Transmission System to deliver energy to its Network Loads
from resources that have not been designated as Network Resources. Such
energy shall be transmitted, on an as-available basis, at no additional
charge. Deliveries from resources other than Network Resources will
have a higher priority than any Non-Firm Point-To-Point Transmission
Service under Part II of the Tariff.
28.5 Real Power Losses: Real Power Losses are associated with all
transmission service. The Transmission Provider is not obligated to
provide Real Power Losses. The Network Customer is responsible for
replacing losses associated with all transmission service as calculated
by the Transmission Provider. The applicable Real Power Loss factors
are specified in the Service Agreements.
28.6 Restrictions on Use of Service: The Network Customer shall not
use Network Integration Transmission Service for (i) sales of capacity
and energy to non-designated loads, or (ii) direct or indirect
provision of transmission service by the Network Customer to third
parties. All Network Customers taking Network Integration Transmission
Service shall use Point-To-Point Transmission Service under Part II of
the Tariff for any Third-Party Sale which requires use of the
Transmission Provider's Transmission System.
29 Initiating Service
29.1 Condition Precedent for Receiving Service: Subject to the terms
and conditions of Part III of the Tariff, the Transmission Provider
will provide Network Integration Transmission Service to any Eligible
Customer provided that (i) the Eligible Customer completes an
Application for service as provided under Part III of the Tariff, (ii)
the Eligible Customer and the Transmission Provider complete the
technical arrangements set forth in Sections 29.3 and 29.4, (iii) the
Eligible Customer executes a Service Agreement pursuant to Attachment F
for service under Part III of the Tariff or requests in writing that
the Transmission Provider provide service without an executed Service
Agreement, and (iv) the Eligible Customer executes a Network Operating
Agreement with the Transmission Provider pursuant to Attachment G. If
the Transmission Provider and the Network Customer cannot agree on all
the terms and conditions of the Network Service Agreement, the
Transmission Provider shall commence providing Network Integration
Transmission Service subject to the Network Customer agreeing to (i)
compensate the Transmission Provider at the existing rate placed in
effect pursuant to applicable Federal law and regulations, and (ii)
comply with the terms and conditions of the Tariff including paying the
appropriate processing fees in accordance with the terms of Section
29.2. If the Network Customer cannot accept all of the terms and
conditions of the offered Service Agreement, the Network Customer may
request resolution of the unacceptable terms and conditions under
Section 12, Dispute Resolution Procedures, of the Tariff. Any changes
resulting from the Dispute Resolution Procedures will be effective upon
the date of initial service.
29.2 Application Procedures: An Eligible Customer requesting service
under Part III of the Tariff must submit an Application to the
Transmission Provider as far as possible in advance of the month in
which service is to commence. Unless subject to the procedures in
Section 2, Completed Applications for Network Integration Transmission
Service will be assigned a priority according to the date and time the
Application is received, with the earliest Application receiving the
highest priority. Applications should be submitted by entering the
information listed below on the Transmission Provider's OASIS. Prior to
implementation of the Transmission Provider's OASIS, a Completed
Application may be submitted by (i) transmitting the required
information to the Transmission Provider by telefax, or (ii) providing
the information by telephone over the Transmission Provider's time
recorded telephone line. Each of these methods will provide a time-
stamped record for establishing the service priority of the
Application. A Completed Application for Network Integration
Transmission Service also shall include a non-refundable processing
fee. Such fee shall be applicable to all Transmission Customers for
firm Transmission Service requests of one year or longer. Individual
Transmission Provider processing fees will be calculated using the
number of estimated hours it will take to process an application and
will be set forth in Attachment K. This fee does not apply to costs to
complete System Impact Studies or Facility Studies or to add new
facilities. A Completed Application shall provide all of the
information included in 18 CFR 2.20 including but not limited to the
following:
(i) The identity, address, telephone number and facsimile number
of the party requesting service;
(ii) A statement that the party requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
(iii) A description of the Network Load at each delivery point.
This description should separately identify and provide the Eligible
Customer's best estimate of the total loads to be served at each
transmission voltage level, and the loads to be served from each
Transmission Provider substation at the same transmission voltage
level. The description should include a ten (10) year forecast of
summer and winter load and resource requirements beginning with the
first year after the service is scheduled to commence;
(iv) The amount and location of any interruptible loads included
in the Network Load. This shall include the summer and winter capacity
requirements for each interruptible load (had such load not been
interruptible), that portion of the load subject to interruption, the
conditions under which an interruption can be implemented and any
limitations on the amount and frequency of interruptions. An Eligible
Customer should identify the amount of interruptible customer load (if
any), included in the 10 year load forecast provided in response to
(iii) above;
(v) A description of Network Resources (current and 10-year
projection), which shall include, for each Network Resource:
--Unit size and amount of capacity from that unit to be designated as
Network Resource
--VAR capability (both leading and lagging), of all generators
--Operating restrictions
--Any periods of restricted operations throughout the year
--Maintenance schedules
--Minimum loading level of unit
--Normal operating level of unit
[[Page 50593]]
--Any must-run unit designations required for system reliability or
contract reasons
--Approximate variable generating cost ($/MWH) for redispatch
computations
--Arrangements governing sale and delivery of power to third parties
from generating facilities located in the Transmission Provider Control
Area, where only a portion of unit output is designated as a Network
Resource
--Description of purchased power designated as a Network Resource
including source of supply, Control Area location, transmission
arrangements and delivery point(s) to the Transmission Provider's
Transmission System;
(vi) Description of Eligible Customer's transmission system:
--Load flow and stability data, such as real and reactive parts of the
load, lines, transformers, reactive devices and load type, including
normal and emergency ratings of all transmission equipment in a load
flow format compatible with that used by the Transmission Provider
--Operating restrictions needed for reliability
--Operating guides employed by system operators
--Contractual restrictions or committed uses of the Eligible Customer's
transmission system, other than the Eligible Customer's Network Loads
and Resources
--Location of Network Resources described in subsection (v) above
--10 year projection of system expansions or upgrades
--Transmission System maps that include any proposed expansions or
upgrades
--Thermal ratings of Eligible Customer's Control Area ties with other
Control Areas;
(vii) Service Commencement Date and the term of the requested
Network Integration Transmission Service. The minimum term for Network
Integration Transmission Service is one year;
Unless the Parties agree to a different time frame, the
Transmission Provider must acknowledge the request within ten (10) days
of receipt. The acknowledgment must include a date by which a response,
including a Service Agreement, will be sent to the Eligible Customer.
If an Application fails to meet the requirements of this section, the
Transmission Provider shall notify the Eligible Customer requesting
service within fifteen (15) days of receipt and specify the reasons for
such failure. Wherever possible, the Transmission Provider will attempt
to remedy deficiencies in the Application through informal
communications with the Eligible Customer. If such efforts are
unsuccessful, the Transmission Provider shall return the Application
without prejudice to the Eligible Customer filing a new or revised
Application that fully complies with the requirements of this section.
The Eligible Customer will be assigned a new priority consistent with
the date of the new or revised Application. The Transmission Provider
shall treat this information consistent with the standards of conduct
contained in Part 37 of the Commission's regulations.
29.3 Technical Arrangements to be Completed Prior to Commencement of
Service: Network Integration Transmission Service shall not commence
until the Transmission Provider and the Network Customer or a third
party, have completed installation of all equipment specified under the
Network Operating Agreement consistent with Good Utility Practice and
any additional requirements reasonably and consistently imposed to
ensure the reliable operation of the Transmission System. The
Transmission Provider shall exercise reasonable efforts, in
coordination with the Network Customer to complete such arrangements as
soon as practicable taking into consideration the Service Commencement
Date.
29.4 Network Customer Facilities: The provision of Network Integration
Transmission Service shall be conditioned upon the Network Customer
constructing, maintaining and operating the facilities on its side of
each delivery point or interconnection necessary to reliably deliver
capacity and energy from the Transmission Provider's Transmission
System to the Network Customer. The Network Customer shall be solely
responsible for constructing or installing all facilities on the
Network Customer's side of each such delivery point or interconnection.
29.5 This section is intentionally left blank.
30 Network Resources
30.1 Designation of Network Resources: Network Resources shall include
all generation owned, purchased, or leased by the Network Customer
designated to serve Network Load under the Tariff. Network Resources
may not include resources, or any portion thereof, that are committed
for sale to non-designated third party load or otherwise cannot be
called upon to meet the Network Customer's Network Load on a non-
interruptible basis. Any owned or purchased resources that were serving
the Network Customer's loads under firm agreements entered into on or
before the Service Commencement Date shall initially be designated as
Network Resources until the Network Customer terminates the designation
of such resources.
30.2 Designation of New Network Resources: The Network Customer may
designate a new Network Resource by providing the Transmission Provider
with as much advance notice as practicable. A designation of a new
Network Resource must be made by a request for modification of service
pursuant to an Application under Section 29.
30.3 Termination of Network Resources: The Network Customer may
terminate the designation of all or part of a generating resource as a
Network Resource at any time but should provide notification to the
Transmission Provider as soon as reasonably practicable.
30.4 Operation of Network Resources: The Network Customer shall not
operate its designated Network Resources located in the Network
Customer's or Transmission Provider's Control Area such that the output
of those facilities exceeds its designated Network Load, plus non-firm
sales delivered pursuant to Part II of the Tariff, plus losses. This
limitation shall not apply to changes in the operation of a
Transmission Customer's Network Resources at the request of the
Transmission Provider to respond to an emergency or other unforeseen
condition which may impair or degrade the reliability of the
Transmission System.
30.5 Network Customer Redispatch Obligation: As a condition to
receiving Network Integration Transmission Service, the Network
Customer agrees to redispatch its Network Resources as requested by the
Transmission Provider pursuant to Section 33.2. To the extent
practical, the redispatch of resources pursuant to this section shall
be on a least cost, non-discriminatory basis between all Network
Customers, and the Transmission Provider.
30.6 Transmission Arrangements for Network Resources Not Physically
Interconnected With The Transmission Provider: The Network Customer
shall be responsible for any arrangements necessary to deliver capacity
and energy from a Network Resource not physically interconnected with
the Transmission Provider's Transmission System. The Transmission
Provider will undertake
[[Page 50594]]
reasonable efforts to assist the Network Customer in obtaining such
arrangements, including without limitation, providing any information
or data required by such other entity pursuant to Good Utility
Practice.
30.7 Limitation on Designation of Network Resources: The Network
Customer must demonstrate that it owns or has committed to purchase
generation pursuant to an executed contract in order to designate a
generating resource as a Network Resource. Alternatively, the Network
Customer may establish that execution of a contract is contingent upon
the availability of transmission service under Part III of the Tariff.
30.8 Use of Interface Capacity by the Network Customer: There is no
limitation upon a Network Customer's use of the Transmission Provider's
Transmission System at any particular interface to integrate the
Network Customer's Network Resources (or substitute economy purchases)
with its Network Loads. However, a Network Customer's use of the
Transmission Provider's total interface capacity with other
transmission systems may not exceed the Network Customer's Load.
30.9 Network Customer Owned Transmission Facilities: The Network
Customer that owns existing transmission facilities that are integrated
with the Transmission Provider's Transmission System may be eligible to
receive consideration either through a billing credit or some other
mechanism. In order to receive such consideration the Network Customer
must demonstrate that its transmission facilities are integrated into
the plans or operations of the Transmission Provider to serve its power
and transmission customers. For facilities constructed by the Network
Customer subsequent to the Service Commencement Date under Part III of
the Tariff, the Network Customer shall receive credit where such
facilities are jointly planned and installed in coordination with the
Transmission Provider. Calculation of the credit shall be addressed in
either the Network Customer's Service Agreement or any other agreement
between the Parties.
31 Designation of Network Load
31.1 Network Load: The Network Customer must designate the individual
Network Loads on whose behalf the Transmission Provider will provide
Network Integration Transmission Service. The Network Loads shall be
specified in the Service Agreement.
31.2 New Network Loads Connected With the Transmission Provider: The
Network Customer shall provide the Transmission Provider with as much
advance notice as reasonably practicable of the designation of new
Network Load that will be added to its Transmission System. A
designation of new Network Load must be made through a modification of
service pursuant to a new Application. The Transmission Provider will
use due diligence to install any transmission facilities required to
interconnect a new Network Load designated by the Network Customer. The
costs of new facilities required to interconnect a new Network Load
shall be determined in accordance with the procedures provided in
Section 32.4 and shall be charged to the Network Customer in accordance
with Commission policies.
31.3 Network Load Not Physically Interconnected with the Transmission
Provider: This section applies to both initial designation pursuant to
Section 31.1 and the subsequent addition of new Network Load not
physically interconnected with the Transmission Provider. To the extent
that the Network Customer desires to obtain transmission service for a
load outside the Transmission Provider's Transmission System, the
Network Customer shall have the option of (1) electing to include the
entire load as Network Load for all purposes under Part III of the
Tariff and designating Network Resources in connection with such
additional Network Load, or (2) excluding that entire load from its
Network Load and purchasing Point-To-Point Transmission Service under
Part II of the Tariff. To the extent that the Network Customer gives
notice of its intent to add a new Network Load as part of its Network
Load pursuant to this section the request must be made through a
modification of service pursuant to a new Application.
31.4 New Interconnection Points: To the extent the Network Customer
desires to add a new Delivery Point or interconnection point between
the Transmission Provider's Transmission System and a Network Load, the
Network Customer shall provide the Transmission Provider with as much
advance notice as reasonably practicable.
31.5 Changes in Service Requests: Under no circumstances shall the
Network Customer's decision to cancel or delay a requested change in
Network Integration Transmission Service (e.g. the addition of a new
Network Resource or designation of a new Network Load) in any way
relieve the Network Customer of its obligation to pay the costs of
transmission facilities constructed by the Transmission Provider and
charged to the Network Customer as reflected in the Service Agreement.
However, the Transmission Provider must treat any requested change in
Network Integration Transmission Service in a non-discriminatory
manner. The Transmission Provider will have no obligation to refund any
advance of funds expended for purposes of providing facilities for a
Network Customer. However, upon receipt of a Network Customer's written
notice of such a cancellation or delay, the Transmission Provider will
use the same reasonable efforts to mitigate the costs and charges owed
to the Transmission Provider as it would to reduce its own costs and
charges.
31.6 Annual Load and Resource Information Updates: The Network
Customer shall provide the Transmission Provider with annual updates of
Network Load and Network Resource forecasts consistent with those
included in its Application for Network Integration Transmission
Service under Part III of the Tariff. The Network Customer also shall
provide the Transmission Provider with timely written notice of
material changes in any other information provided in its Application
relating to the Network Customer's Network Load, Network Resources, its
transmission system or other aspects of its facilities or operations
affecting the Transmission Provider's ability to provide reliable
service.
32 Additional Study Procedures For Network Integration Transmission
Service Requests
32.1 Notice of Need for System Impact Study: After receiving a request
for service, the Transmission Provider shall determine on a non-
discriminatory basis whether a System Impact Study is needed. A
description of the Transmission Provider's methodology for completing a
System Impact Study is provided in Attachment D. If the Transmission
Provider determines that a System Impact Study is necessary to
accommodate the requested service, it shall so inform the Eligible
Customer, as soon as practicable. In such cases, the Transmission
Provider shall within thirty (30) days of receipt of a Completed
Application, tender a System Impact Study Agreement pursuant to which
the Eligible Customer shall agree to advance funds
[[Page 50595]]
to the Transmission Provider for performing the required System Impact
Study. For a service request to remain a Completed Application, the
Eligible Customer shall execute the System Impact Study Agreement and
return it to the Transmission Provider within fifteen (15) days. If the
Eligible Customer elects not to execute the System Impact Study
Agreement, its Application shall be deemed withdrawn.
32.2 System Impact Study Agreement and Compensation:
(i) The System Impact Study Agreement will clearly specify the
Transmission Provider's estimate of the actual cost, and time for
completion of the System Impact Study. The charge shall not exceed the
actual cost of the study. In performing the System Impact Study, the
Transmission Provider shall rely, to the extent reasonably practicable,
on existing transmission planning studies. The Eligible Customer will
not be assessed a charge for such existing studies; however, the
Eligible Customer will be responsible for charges associated with any
modifications to existing planning studies that are reasonably
necessary to evaluate the impact of the Eligible Customer's request for
service on the Transmission System.
(ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation, a single
System Impact Study is sufficient for the Transmission Provider to
accommodate the service requests, the costs of that study shall be pro-
rated among the Eligible Customers.
(iii) For System Impact Studies that the Transmission Provider
conducts on its own behalf, the Transmission Provider shall record the
cost of the System Impact Studies pursuant to Section 8.
32.3 System Impact Study Procedures: Upon receipt of an executed
System Impact Study Agreement, the Transmission Provider will use due
diligence to complete the required System Impact Study within a sixty
(60) day period. The System Impact Study shall identify any system
constraints and redispatch options, additional Direct Assignment
Facilities or Network Upgrades required to provide the requested
service. In the event that the Transmission Provider is unable to
complete the required System Impact Study within such time period, it
shall so notify the Eligible Customer and provide an estimated
completion date along with an explanation of the reasons why additional
time is required to complete the required studies. A copy of the
completed System Impact Study and related work papers shall be made
available to the Eligible Customer. The Transmission Provider will use
the same due diligence in completing the System Impact Study for an
Eligible Customer as it uses when completing studies for itself. The
Transmission Provider shall notify the Eligible Customer immediately
upon completion of the System Impact Study if the Transmission System
will be adequate to accommodate all or part of a request for service or
that no costs are likely to be incurred for new transmission facilities
or upgrades. In order for a request to remain a Completed Application,
within fifteen (15) days of completion of the System Impact Study the
Eligible Customer must execute a Service Agreement or request service
without an executed Service Agreement pursuant to Section 29.1, or the
Application shall be deemed terminated and withdrawn.
32.4 Facilities Study Procedures: If a System Impact Study indicates
that additions or upgrades to the Transmission System are needed to
supply the Eligible Customer's service request, the Transmission
Provider, within thirty (30) days of the completion of the System
Impact Study, shall tender to the Eligible Customer a Facilities Study
Agreement pursuant to which the Eligible Customer shall agree to
advance funds to the Transmission Provider for performing the required
Facilities Study. For a service request to remain a Completed
Application, the Eligible Customer shall execute the Facilities Study
Agreement and return it to the Transmission Provider within fifteen
(15) days. If the Eligible Customer elects not to execute the
Facilities Study Agreement, its Application shall be deemed withdrawn
and its deposit shall be returned. Upon receipt of an executed
Facilities Study Agreement, the Transmission Provider will use due
diligence to complete the required Facilities Study within a sixty (60)
day period. If the Transmission Provider is unable to complete the
Facilities Study in the allotted time period, the Transmission Provider
shall notify the Eligible Customer and provide an estimate of the time
needed to reach a final determination along with an explanation of the
reasons that additional time is required to complete the study. When
completed, the Facilities Study will include a good faith estimate of
(i) the cost of Direct Assignment Facilities to be charged to the
Eligible Customer, (ii) the Eligible Customer's appropriate share of
the cost of any required Network Upgrades, and (iii) the time required
to complete such construction and initiate the requested service. The
Eligible Customer shall advance funds to the Transmission Provider for
the construction of new facilities and such advance and construction
shall be provided for in a separate agreement. If the construction of
new facilities requires the expenditure of Transmission Provider funds,
such construction shall be contingent upon the availability of
appropriated funds. The Eligible Customer shall have thirty (30) days
to execute a construction agreement and a Service Agreement and provide
the advance payment or request service without an executed Service
Agreement pursuant to Section 29.1 and provide the required letter of
credit or other form of security or the request no longer will be a
Completed Application and shall be deemed terminated and withdrawn.
33 Load Shedding and Curtailments
33.1 Procedures: Prior to the Service Commencement Date, the
Transmission Provider and the Network Customer shall establish Load
Shedding and Curtailment procedures pursuant to the Network Operating
Agreement with the objective of responding to contingencies on the
Transmission System. The Parties will implement such programs during
any period when the Transmission Provider determines that a system
contingency exists and such procedures are necessary to alleviate such
contingency. The Transmission Provider will notify all affected Network
Customers in a timely manner of any scheduled Curtailment.
33.2 Transmission Constraints: During any period when the Transmission
Provider determines that a transmission constraint exists on the
Transmission System, and such constraint may impair the reliability of
the Transmission Provider's system, the Transmission Provider will take
whatever actions, consistent with Good Utility Practice, that are
reasonably necessary to maintain the reliability of the Transmission
Provider's system. To the extent the Transmission Provider determines
[[Page 50596]]
that the reliability of the Transmission System can be maintained by
redispatching resources, the Transmission Provider will initiate
procedures pursuant to the Network Operating Agreement to redispatch
all Network Resources and the Transmission Provider's own resources on
a least-cost basis without regard to the ownership of such resources.
Any redispatch under this section may not unduly discriminate between
the Transmission Provider's use of the Transmission System on behalf of
its Native Load Customers and any Network Customer's use of the
Transmission System to serve its designated Network Load.
33.3 Cost Responsibility for Relieving Transmission Constraints:
Whenever the Transmission Provider implements least-cost redispatch
procedures in response to a transmission constraint, the Transmission
Provider and Network Customers will each bear a proportionate share of
the total redispatch cost based on their respective Load Ratio Shares.
33.4 Curtailments of Scheduled Deliveries: If a transmission
constraint on the Transmission Provider's Transmission System cannot be
relieved through the implementation of least-cost redispatch procedures
and the Transmission Provider determines that it is necessary to
Curtail scheduled deliveries, the Parties shall Curtail such schedules
in accordance with the Network Operating Agreement.
33.5 Allocation of Curtailments: The Transmission Provider shall, on a
non-discriminatory basis, Curtail the transaction(s) that effectively
relieve the constraint. However, to the extent practicable and
consistent with Good Utility Practice, any Curtailment will be shared
by the Transmission Provider and Network Customer in proportion to
their respective Load Ratio Shares. The Transmission Provider shall not
direct the Network Customer to Curtail schedules to an extent greater
than the Transmission Provider would Curtail the Transmission
Provider's schedules under similar circumstances.
33.6 Load Shedding: To the extent that a system contingency exists on
the Transmission Provider's Transmission System and the Transmission
Provider determines that it is necessary for the Transmission Provider
and the Network Customer to shed load, the Parties shall shed load in
accordance with previously established procedures under the Network
Operating Agreement.
33.7 System Reliability: Notwithstanding any other provisions of this
Tariff, the Transmission Provider reserves the right, consistent with
Good Utility Practice and on a not unduly discriminatory basis, to
Curtail Network Integration Transmission Service without liability on
the Transmission Provider's part for the purpose of making necessary
adjustments to, changes in, or repairs on its lines, substations and
facilities, and in cases where the continuance of Network Integration
Transmission Service would endanger persons or property. In the event
of any adverse condition(s) or disturbance(s) on the Transmission
Provider's Transmission System or on any other system(s) directly or
indirectly interconnected with the Transmission Provider's Transmission
System, the Transmission Provider, consistent with Good Utility
Practice, also may Curtail Network Integration Transmission Service in
order to (i) limit the extent or damage of the adverse condition(s) or
disturbance(s), (ii) prevent damage to generating or transmission
facilities, or (iii) expedite restoration of service. The Transmission
Provider will give the Network Customer as much advance notice as is
practicable in the event of such Curtailment. Any Curtailment of
Network Integration Transmission Service will be not unduly
discriminatory relative to the Transmission Provider's use of the
Transmission System on behalf of its Native Load Customers. The
Transmission Provider shall specify the rate treatment and all related
terms and conditions applicable in the event that the Network Customer
fails to respond to established Load Shedding and Curtailment
procedures.
34 Rates and Charges
The Network Customer shall pay the Transmission Provider for any
Direct Assignment Facilities, Ancillary Services, and applicable study
costs, consistent with Federal policy, along with the following:
34.1 Monthly Demand Charge: The Network Customer shall pay a monthly
Demand Charge, which shall be determined by multiplying its Load Ratio
Share times one twelfth (\1/12\) of the Transmission Provider's Annual
Transmission Revenue Requirement specified in Schedule H.
34.2 Determination of Network Customer's Monthly Network Load: The
Network Customer's monthly Network Load is its hourly load (including
its designated Network Load not physically interconnected with the
Transmission Provider under Section 31.3) coincident with the
Transmission Provider's Monthly Transmission System Peak.
34.3 Determination of Transmission Provider's Monthly Transmission
System Load: The Transmission Provider's monthly Transmission System
load is the Transmission Provider's Monthly Transmission System Peak
minus the coincident peak usage of all Firm Point-To-Point Transmission
Service customers pursuant to Part II of this Tariff plus the Reserved
Capacity of all Firm Point-To-Point Transmission Service customers.
34.4 Redispatch Charge: The Network Customer shall pay a Load Ratio
Share of any redispatch costs allocated between the Network Customer
and the Transmission Provider pursuant to Section 33. To the extent
that the Transmission Provider incurs an obligation to the Network
Customer for redispatch costs in accordance with Section 33, such
amounts shall be credited against the Network Customer's bill for the
applicable month.
34.5 Stranded Cost Recovery: The Transmission Provider may seek to
recover stranded costs from the Network Customer in a manner consistent
with applicable Federal law and regulations.
35 Operating Arrangements
35.1 Operation under The Network Operating Agreement: The Network
Customer shall plan, construct, operate and maintain its facilities in
accordance with Good Utility Practice and in conformance with the
Network Operating Agreement.
35.2 Network Operating Agreement: The terms and conditions under which
the Network Customer shall operate its facilities and the technical and
operational matters associated with the implementation of Part III of
the Tariff shall be specified in the Network Operating Agreement. The
Network Operating Agreement shall provide for the Parties to (i)
operate and maintain equipment necessary for integrating the Network
Customer within the Transmission Provider's Transmission System
(including, but not limited to, remote terminal units, metering,
communications equipment and relaying equipment), (ii) transfer data
between the Transmission Provider and the Network Customer (including,
but not limited to, heat rates and operational characteristics of
Network Resources, generation
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schedules for units outside the Transmission Provider's Transmission
System, interchange schedules, unit outputs for redispatch required
under Section 33, voltage schedules, loss factors and other real time
data), (iii) use software programs required for data links and
constraint dispatching, (iv) exchange data on forecasted loads and
resources necessary for long-term planning, and (v) address any other
technical and operational considerations required for implementation of
Part III of the Tariff, including scheduling protocols. The Network
Operating Agreement will recognize that the Network Customer shall
either (i) operate as a Control Area under applicable guidelines of the
North American Electric Reliability Council (NERC) and the applicable
regional reliability council, (ii) satisfy its Control Area
requirements, including all necessary Ancillary Services, by
contracting with the Transmission Provider, or (iii) satisfy its
Control Area requirements, including all necessary Ancillary Services,
by contracting with another entity, consistent with Good Utility
Practice, which satisfies NERC and the applicable regional reliability
council requirements. The Transmission Provider shall not unreasonably
refuse to accept contractual arrangements with another entity for
Ancillary Services. The Network Operating Agreement is included in
Attachment G.
35.3 Network Operating Committee: A Network Operating Committee
(Committee) shall be established to coordinate operating criteria for
the Parties' respective responsibilities under the Network Operating
Agreement. Each Network Customer shall be entitled to have at least one
representative on the Committee. The Committee shall meet from time to
time as need requires, but no less than once each calendar year.
Schedule 1
Scheduling, System Control and Dispatch Service
This service is required to schedule the movement of power through,
out of, within, or into a Control Area. This service can be provided
only by the operator of the Control Area in which the transmission
facilities used for transmission service are located. Scheduling,
System Control and Dispatch Service is provided directly by the
Transmission Provider if the Transmission Provider is the Control Area
Operator or indirectly by the Transmission Provider making arrangements
with the Control Area operator that performs this service for the
Transmission Provider's Transmission System. The Transmission Customer
must purchase this service from the Transmission Provider or the
Control Area operator. The charges for Scheduling, System Control and
Dispatch Service are to be based on the rates referred to below. To the
extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The Transmission System specific charges for Scheduling, System
Control and Dispatch Service are set forth in the appropriate rate
schedule attached to and made part of the applicable Service Agreement.
The rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Scheduling,
System Control and Dispatch Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Scheduling, System Control and Dispatch Service shall be
as set forth in a subsequent rate schedule promulgated pursuant to
applicable Federal laws, regulations and policies and attached to and
made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 2
Reactive Supply and Voltage Control From Generation Sources Service
In order to maintain transmission voltages on the Transmission
Provider's transmission facilities within acceptable limits, generation
facilities under the control of the Control Area operator are operated
to produce or absorb reactive power. Thus, Reactive Supply and Voltage
Control from Generation Sources Service must be provided for each
transaction on the Transmission Provider's transmission facilities. The
amount of Reactive Supply and Voltage Control from Generation Sources
Service that must be supplied with respect to the Transmission
Customer's transaction will be determined based on the reactive power
support necessary to maintain transmission voltages within limits that
are generally accepted in the region and consistently adhered to by the
Transmission Provider.
Reactive Supply and Voltage Control from Generation Sources Service
can be provided directly by the Transmission Provider if the
Transmission Provider is the Control Area operator or indirectly by the
Transmission Provider making arrangements with the Control Area
operator that performs this service for the Transmission Provider's
Transmission System. The Transmission Customer must purchase this
service from the Transmission Provider or the Control Area operator.
The charges for such service will be based upon the rates referred to
below. To the extent the Control Area operator performs this service
for the Transmission Provider, charges to the Transmission Customer are
to reflect only a pass-through of the costs charged to the Transmission
Provider by the Control Area Operator.
The Transmission System specific charges for Reactive Supply and
Voltage Control from Generation Sources Service are set forth in the
appropriate rate schedule attached to and made part of the applicable
Service Agreement. The rates or rate methodology used to calculate the
charges for service under this schedule were promulgated and may be
modified pursuant to applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Reactive
Supply and Voltage Control from Generation Sources Service upon written
notice to the Transmission Customer. Any change to the charges to the
Transmission Customer for Reactive Supply and Voltage Control from
Generation Sources Service shall be as set forth in a subsequent rate
schedule promulgated pursuant to applicable Federal laws, regulations
and policies and attached to and made part of the applicable Service
Agreement. The Transmission Provider shall charge the Transmission
Customer in accordance with the rate then in effect.
Schedule 3
Regulation and Frequency Response Service
Regulation and Frequency Response Service is necessary to provide
for the continuous balancing of resources, generation and interchange,
with load and for maintaining scheduled interconnection frequency at
sixty cycles per second (60 Hz). Regulation and Frequency Response
Service is accomplished by committing on-line generation whose output
is raised or lowered, predominantly through the use of automatic
generating control equipment, as necessary to follow the
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moment-by-moment changes in load. The obligation to maintain this
balance between resources and load lies with the Transmission Provider
(or the Control Area operator that performs this function for the
Transmission Provider). The Transmission Provider must offer this
service when the transmission service is used to serve load within its
Control Area. The Transmission Customer must either purchase this
service from the Transmission Provider or make alternative comparable
arrangements to satisfy its Regulation and Frequency Response Service
obligation. The charges for Regulation and Frequency Response Service
are referred to below. The amount of Regulation and Frequency Response
Service will be set forth in the Service Agreement. To the extent the
Control Area operator performs this service for the Transmission
Provider, charges to the Transmission Customer are to reflect only a
pass-through of the costs charged to the Transmission Provider by that
Control Area operator.
The Transmission System specific charges for Regulation and
Frequency Response Service are set forth in the appropriate rate
schedule attached to and made part of the applicable Service Agreement.
The rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Regulation and
Frequency Response Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Regulation and Frequency Response Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to applicable Federal
laws, regulations and policies and attached to and made part of the
applicable Service Agreement. The Transmission Provider shall charge
the Transmission Customer in accordance with the rate then in effect.
Schedule 4
Energy Imbalance Service
Energy Imbalance Service is provided when a difference occurs
between the scheduled and the actual delivery of energy to a load
located within a Control Area over a single hour. The Transmission
Provider must offer this service when the transmission service is used
to serve load within its Control Area. The Transmission Customer must
either obtain this service from the Transmission Provider or make
alternative comparable arrangements to satisfy its Energy Imbalance
Service obligation. To the extent the Control Area operator performs
this service for the Transmission Provider, charges to the Transmission
Customer are to reflect only a pass-through of the costs charged to the
Transmission Provider by that Control Area operator.
The Transmission Provider shall establish a deviation band of +/
-1.5 percent (with a minimum of 2 MW) of the scheduled transaction to
be applied hourly to any energy imbalance that occurs as a result of
the Transmission Customer's scheduled transaction(s). Parties should
attempt to eliminate energy imbalances within the limits of the
deviation band within thirty (30) days or within such other reasonable
period of time as is generally accepted in the region and consistently
adhered to by the Transmission Provider. If an energy imbalance is not
corrected within thirty (30) days or a reasonable period of time that
is generally accepted in the region and consistently adhered to by the
Transmission Provider, the Transmission Customer will compensate the
Transmission Provider for such service. Energy imbalances outside the
deviation band will be subject to charges to be specified by the
Transmission Provider. Compensation for Energy Imbalance Service will
be as set forth below.
The Transmission System specific compensation for Energy Imbalance
Service are set forth in the appropriate rate schedule attached to and
made part of the applicable Service Agreement. The rates or rate
methodology used to calculate the charges for service under this
schedule were promulgated and may be modified pursuant to applicable
Federal laws, regulations and policies.
The Transmission Provider may modify the compensation for Energy
Imbalance Service upon written notice to the Transmission Customer. Any
change to the compensation to the Transmission Customer for Energy
Imbalance Service shall be as set forth in a subsequent rate schedule
promulgated pursuant to applicable Federal laws, regulations and
policies and attached to and made part of the applicable Service
Agreement. The Transmission Provider shall charge the Transmission
Customer in accordance with the rate then in effect.
Schedule 5
Operating Reserve--Spinning Reserve Service
Spinning Reserve Service is needed to serve load immediately in the
event of a system contingency. Spinning Reserve Service may be provided
by generating units that are on-line and loaded at less than maximum
output. The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Spinning Reserve Service obligation. The charges for
Spinning Reserve Service are referred to below. The amount of Spinning
Reserve Service will be set forth in the Service Agreement. To the
extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The Transmission System specific charges for Operating Reserve--
Spinning Reserve Service are set forth in the appropriate rate schedule
attached to and made part of the applicable Service Agreement. The
rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Operating
Reserve--Spinning Reserve Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Operating Reserve--Spinning Reserve Service shall be as
set forth in a subsequent rate schedule promulgated pursuant to
applicable Federal laws, regulations and policies and attached to and
made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 6
Operating Reserve--Supplemental Reserve Service
Supplemental Reserve Service is needed to serve load in the event
of a system contingency; however, it is not available immediately to
serve load but rather within a short period of time. Supplemental
Reserve Service may be provided by generating units that are on-line
but unloaded, by quick-start generation or by interruptible load. The
Transmission Provider must offer this service when the transmission
service is used to serve load within its Control Area. The Transmission
Customer must either purchase this service from the Transmission
Provider or make
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alternative comparable arrangements to satisfy its Supplemental Reserve
Service obligation. The charges for Supplemental Reserve Service are
referred to below. The amount of Supplemental Reserve Service will be
set forth in the Service Agreement. To the extent the Control Area
operator performs this service for the Transmission Provider, charges
to the Transmission Customer are to reflect only a pass-through of the
costs charged to the Transmission Provider by that Control Area
operator.
The Transmission System specific charges for Operating Reserve--
Supplemental Reserve Service are set forth in the appropriate rate
schedule attached to and made part of the applicable Service Agreement.
The rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Operating
Reserve--Supplemental Reserve Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Operating Reserve--Supplemental Reserve Service shall be
as set forth in a subsequent rate schedule promulgated pursuant to
applicable Federal laws, regulations and policies and attached to and
made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 7
Long-Term Firm and Short-Term Firm Point-To-Point Transmission Service
The Transmission Customer shall compensate the Transmission
Provider each month for Reserved Capacity pursuant to the Transmission
System specific Firm Point-to-Point Transmission Service Rate Schedule
attached to and made a part of the applicable Service Agreement. The
rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Firm Point-to-
Point Transmission Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Firm Point-to-Point Transmission Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to applicable Federal
laws, regulations and policies and attached to and made part of the
applicable Service Agreement. The Transmission Provider shall charge
the Transmission Customer in accordance with the rate then in effect.
Discounts: Three principal requirements apply to discounts for
transmission service as follows: (1) Any offer of a discount made by
the Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts, including requests for use by one's wholesale merchant or an
affiliate's use, must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
Point(s) of Receipt to Point(s) of Delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
Schedule 8
Non-Firm Point-To-Point Transmission Service
The Transmission Customer shall compensate the Transmission
Provider for Non-Firm Point-to-Point Transmission Service pursuant to
the Transmission System specific Non-Firm Point-to-Point Transmission
Service Rate Schedule attached to and made a part of the applicable
Service Agreement. The rates or rate methodology used to calculate the
charges for service under this schedule were promulgated and may be
modified pursuant to applicable Federal laws, regulations and policies.
The Transmission Provider may modify the charges for Firm Point-to-
Point Transmission Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Firm Point-to-Point Transmission Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to applicable Federal
laws, regulations and policies and attached to and made part of the
applicable Service Agreement. The Transmission Provider shall charge
the Transmission Customer in accordance with the rate then in effect.
Discounts: Three principal requirements apply to discounts for
transmission service as follows: (1) Any offer of a discount made by
the Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts, including requests for use by one's wholesale merchant or an
affiliate's use, must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
Point(s) of Receipt to Point(s) of Delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
Attachment A
Form of Service Agreement for Firm Point-To-Point Transmission Service
1.0 This Service Agreement, dated as of __________________, is
entered into, by and between the (Region) of Western Area Power
Administration (Transmission Provider), and ____________ (Transmission
Customer). The Transmission Provider may revise charges or losses for
Firm Point-to-Point Transmission Service provided under this Service
Agreement pursuant to applicable Federal Laws, regulations and policies
upon written notice to the Transmission Customer.
2.0 The Transmission Customer has been determined by the Transmission
Provider to have a Completed Application for Firm Point-To-Point
Transmission Service under the Tariff.
3.0 The Transmission Customer has provided to the Transmission
Provider a nonrefundable Application processing fee in accordance with
the provisions of Section 17.3 of the Tariff.
4.0 Service under this agreement shall commence on the later of (1)
the requested Service Commencement Date, or (2) the date on which
construction of any Direct Assignment Facilities and/or Network
Upgrades are completed, or (3) such other date as is mutually agreed.
Service under this agreement shall terminate on ____________.
5.0 The Transmission Provider agrees to provide and the Transmission
Customer agrees to take and pay for Firm Point-To-Point Transmission
Service in accordance with the provisions of Part II of the Tariff, and
this Service Agreement.
6.0 Any notice or request made to or by either Party regarding this
Service Agreement shall be made to the representative of the other
Party as indicated below.
[[Page 50600]]
Transmission Provider:
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Transmission Customer:
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7.0 The Tariff and the ``Specifications For Long-Term Firm Point-To-
Point'' as presently constituted or as they may be revised or
superseded are incorporated herein and made a part hereof.
In witness whereof, the Parties have caused this Service Agreement
to be executed by their respective authorized officials.
Western Area Power Administration
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
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Date:------------------------------------------------------------------
(Transmission Customer)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
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Date:------------------------------------------------------------------
Specifications for Long-Term Firm Point-To-Point Transmission
Service
For purposes of this Service Agreement, the Transmission
Provider's Transmission System consists of the facilities of the
(Region) as described in Attachment K.
1.0 Term of Transaction:----------------------------------------------
Start Date:----------------------------------------------------------
Termination Date:----------------------------------------------------
2.0 Description of capacity and energy to be transmitted by
Transmission Provider including the electric Control Area in which
the transaction originates.
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3.0 Point(s) of Receipt:----------------------------------------------
Delivering Party:----------------------------------------------------
Capacity Reservation:------------------------------------------------
4.0 Point(s) of Delivery:---------------------------------------------
Receiving Party:-----------------------------------------------------
Capacity Reservation:------------------------------------------------
5.0 The Maximum amount of capacity and energy to be transmitted
(Reserved Capacity) is : ____
6.0 Designation of party(ies) subject to reciprocal service
obligation:
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7.0 Name of the Control Area from which capacity and energy will be
delivered to the Transmission Provider for Transmission Service:
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Name of the Control Area to which capacity and energy will be
delivered by the Transmission Provider:
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Name(s) of any Intervening Systems providing transmission service:
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8.0 Service under this Agreement may be subject to some combination
of the charges detailed below. The appropriate charges for
individual transactions will be determined in accordance with the
terms and conditions of the Tariff.
8.1 Transmission Charge:----------------------------------------------
8.2 System Impact and/or Facilities Study Charge(s):
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8.3 Direct Assignment Facilities Charge:
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8.4 Ancillary Services Charges:
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8.5 Redispatch Charges:
To be filled in if applicable.
8.6 Network Upgrade Charges:
To be filled in if applicable
9.0 Power Factor: The Transmission Customer will be required to
maintain a power factor between ____-percent lagging and ____-
percent leading for all deliveries of capacity and energy to and
from the Transmission Provider's Transmission System.
10.0 Transmission Losses
10.1 Loss Factors:
10.1.1 If, based on operating experience and technical studies, the
Transmission Provider determines that any of the transmission loss
factors on the Transmission Provider's Transmission System differs
from the loss factors set forth in this Service Agreement, the
Transmission Provider reserves the right to update this Service
Agreement to reflect such revised loss factors.
10.1.2 Transmission Provider Transmission Loss Factor: Transmission
Provider transmission losses shall be ____% and shall be assessed on
the power scheduled and transmitted to a point of delivery on the
Transmission Provider's Transmission System.
11.0 Ancillary Services
11.1 Provided by Transmission Provider
11.1.1 Scheduling, System Control, and Dispatch Service
11.1.2 Reactive Supply and Voltage Control from Generation
Sources Service
11.2 Provided by Transmission Customer
11.2.1 (To be filled in if applicable)
11.2.2
11.3 Provided by ________
11.3.1 (To be filled in if applicable)
11.3.2
12.0 Net Billing and Bill Crediting Option: The Parties have agreed
to implement [Net Billing, Bill Crediting, or both] as set forth in
Attachment J.
13.0 Charges for Service: Charges for Firm Point-to-Point
Transmission Service and associated Ancillary Services shall be
calculated in accordance with [Rate Schedules] attached hereto and
made a part of this Service Agreement. The rates or rate methodology
used to calculate the charges for service under that schedule were
promulgated and may be modified pursuant to applicable Federal laws,
regulations and policies.
Attachment B
Form Of Service Agreement For Non-Firm Point-To-Point Transmission
Service
1.0 This Service Agreement, dated as of ________________, is entered
into, by and between the (Region) of Western Area Power Administration
(Transmission Provider), and ________________ (Transmission Customer).
The Transmission Provider may revise charges or losses for Non-Firm
Point-to-Point Transmission Service provided under this Service
Agreement pursuant to applicable Federal laws, regulations and policies
upon written notice to the Transmission Customer.
2.0 The Transmission Customer has been determined by the Transmission
Provider to be a Transmission Customer under Part II of the Tariff and
has filed a Completed Application for Non-Firm Point-To-Point
Transmission Service in accordance with Section 18.2 of the Tariff.
3.0 Service under this Service Agreement shall be provided by the
Transmission Provider upon request by an authorized representative of
the Transmission Customer. For purposes of this Service Agreement, the
Transmission Provider's Transmission System consists of the facilities
of the (Region) as described in Attachment K.
4.0 The Transmission Customer agrees to supply information the
Transmission Provider deems reasonably necessary in accordance with
Good Utility Practice in order for it to provide the requested service.
5.0 The Transmission Provider agrees to provide and the Transmission
Customer agrees to take and pay for Non-Firm Point-To-Point
Transmission Service in accordance with the provisions of Part II of
the Tariff, and this Service Agreement.
6.0 Any notice or request made to or by either Party regarding this
Service Agreement shall be made to the representative of the other
Party as indicated below.
Transmission Provider:
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Transmission Customer:
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7.0 The Tariff as presently constituted or as it may be revised or
superseded
[[Page 50601]]
is incorporated herein and made a part hereof.
8.0 Power Factor: The Transmission Customer will be required to
maintain a power factor between ____-percent lagging and ____-percent
leading for all deliveries of capacity and energy to and from the
Transmission Provider's Transmission System.
9.0 Transmission Losses:
9.1 Loss Factors:
9.1.1 If, based on operating experience and technical studies, the
Transmission Provider determines that any of the transmission loss
factors on the Transmission Provider's Transmission Systems differ from
the loss factors set forth in this Service Agreement, the Transmission
Provider reserves the right to update this Service Agreement to reflect
such revised loss factors.
9.1.2 Transmission Provider Transmission Loss Factor: Transmission
Provider transmission losses shall be ____% and shall be assessed on
the power scheduled and transmitted to a point of delivery on the
Transmission Provider's Transmission System.
10.0 Ancillary Services
10.1 Provided by Transmission Provider
10.1.1 Scheduling, System Control, and Dispatch Service
10.1.2 Reactive Supply and Voltage Control from Generation Sources
Service
10.2 Provided by Transmission Customer
10.2.1 To be filled in if appropriate
10.2.2
10.3 Provided by ________
10.3.1 To be filled in if appropriate
10.3.2
11.0 Net Billing and Bill Crediting Option: The Parties have agreed to
implement [Net Billing, Bill Crediting, or both] as set forth in
Attachment J.
12.0 Charges for Service: Charges for Non-Firm Point-to-Point
Transmission Service and associated Ancillary Services shall be
calculated in accordance with [Rate Schedules] attached hereto and made
a part of this Service Agreement. The rates or rate methodology used to
calculate the charges for service under that schedule were promulgated
and may be modified pursuant to applicable Federal laws, regulations
and policies.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement
to be executed by their respective authorized officials.
WESTERN AREA POWER ADMINISTRATION
By:-------------------------------------------------------------------
Title:----------------------------------------------------------------
Address:--------------------------------------------------------------
Date:-----------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:-------------------------------------------------------------------
Title:----------------------------------------------------------------
Address:--------------------------------------------------------------
Date:-----------------------------------------------------------------
Attachment C
Methodology To Assess Available Transmission Capability
The Transmission Provider will compute the transmission transfer
capability available on a point-to-point basis from the Delivering
Party to the Receiving Party using Good Utility Practice and the
engineering and operating principles, standards, guidelines and
criteria of the Transmission Provider, the applicable Regional
Reliability Council, any entity of which the Transmission Provider is a
member and is approved by the Commission to promulgate or apply
regional or national reliability planning standards (such as a regional
transmission group, RTG), or any similar organization that may exist in
the future of which the Transmission Provider is then a member.
Principal items used to determine maximum transmission transfer
capability available shall include reliability, transmission element
loading, system contingency performance, voltage levels, and stability.
In determining Available Transmission Capability, the Transmission
Provider will reserve sufficient transmission capability to meet its
current and forecasted power service obligations, current and
forecasted Network Customer loads, and existing transmission service
obligations.
Attachment D
Methodology For Completing a System Impact Study
The Transmission Provider will assess the capability of the
Transmission System to provide the service requested using the criteria
and process for this assessment as detailed in Sections 4 and 5 of the
Transmission Provider's annual FERC Form 715 submittal in those
instances where the Transmission Provider is a member of the Western
Systems Coordinating Council. (CRSP, DSW, RMR, and SNR) The
Transmission Provider will use the Mid-Continent Area Power Pool (MAPP)
System Impact Study Methodology when the Transmission Provider is a
member of MAPP. (UGPR)
Attachment E
Index of Point-To-Point Transmission Service Customers
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Customer Date of service agreement
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Attachment F
Service Agreement For Network Integration Transmission Service
1.0 This Service Agreement, dated as of ________________, is entered
into, by and between the ( Region) of Western Area Power Administration
(Transmission Provider), and ________________ (Transmission Customer).
2.0 The Transmission Customer has been determined by the Transmission
Provider to have a Completed Application for Network Integration
Transmission Service under the Tariff.
3.0 Service under this Service Agreement shall commence on the later
of (1) ________________, or (2) the date on which construction of any
Direct Assignment Facilities and/or Network Upgrades are completed, or
(3) such other date as is mutually agreed. Service under this Service
Agreement shall terminate on ________________.
4.0 The Transmission Provider agrees to provide and the Transmission
Customer agrees to take and pay for Network Integration Transmission
Service in accordance with the provisions of Part III of the Tariff,
and this Service Agreement.
5.0 Any notice or request made to or by either Party regarding this
Service Agreement shall be made to the representative of the other
Party as indicated below.
Transmission Provider:
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Transmission Customer:
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6.0 The Tariff and the ``Specifications for Network Integration
Transmission Service'' as presently constituted or as they may be
revised or superseded are incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement
to be executed by their respective authorized officials.
[[Page 50602]]
WESTERN AREA POWER ADMINISTRATION
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
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Date:------------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
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Date:------------------------------------------------------------------
Specifications for Network Integration Transmission Service
For purposes of this Service Agreement, the Transmission Provider's
Transmission System consists of the facilities of the (Region) as
described in Attachment K.
1.0 The Transmission Provider will provide Network Integration
Transmission Service over the Transmission Provider's Transmission
System for the delivery of capacity and energy from the Network
Customer's designated Network Resources to the Network Customer's
designated Network Load. The Transmission Provider will also provide
non-firm transmission service from non-designated Network Resources
under the terms of this Service Agreement. The loss factors associated
with this Network Integration Transmission Service are set forth below.
Such losses shall be applied and accounted for as set forth in Section
4.
2.0 Designated Network Resources:
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Designated Network Resources &
Estimated Maximum Resource Point of Receipt Delivering Party &
(MW) Voltage
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3.0 Designated Network Loads:
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Designated Network Load &
Estimated Maximum Resource Point of Delivery Voltage
(MW)
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4.0 Transmission Losses:
4.1 Loss Factors:
4.1.1 If, based on operating experience and technical studies, the
Transmission Provider determines that any of the transmission loss
factors on the Transmission Provider's Transmission System differ from
the loss factors set forth in this Service Agreement, the Transmission
Provider reserves the right to update this Service Agreement to reflect
such revised loss factors.
4.1.2 Transmission Provider Transmission Loss Factor: For
deliveries to the Network Customer Network Load, Transmission Provider
transmission losses shall be--% and shall be assessed on the power
scheduled and transmitted to a point of delivery on the Transmission
Provider's Transmission System.
4.2 Transmission losses may be revised by written notice from the
Transmission Provider to the Transmission Customer.
5.0 The Network Customer's transmission facilities that are integrated
with the Transmission Provider's Transmission System will receive
__________ credit. These facilities include the following:
5.1 ____________
5.2 ____________
6.0 Names of any intervening systems with whom the Network Customer
has arranged for transmission service to the Transmission Provider's
Transmission System.
6.1 ____________
6.2 ____________
7.0 Power Factor: The Transmission Customer will be required to
maintain a power factor between__-percent lagging and__-percent leading
for all deliveries of capacity and energy to and from the Transmission
Provider's Transmission System.
8.0 Ancillary Services
8.1 Provided by Transmission Provider
8.1.1 Scheduling, System Control, and Dispatch Service
8.1.2 Reactive Supply and Voltage Control from Generation Sources
Service
8.2 Provided by Transmission Customer
8.2.1 (To be filled in if appropriate)
8.2.2
8.3 Provided by ________
8.3.1 (To be filled in if appropriate)
8.3.2
9.0 Net Billing and Bill Crediting Option: The Parties have agreed to
implement [Net Billing, Bill Crediting, or both] as set forth in
Attachment J.
10.0 Charges for Service: Charges for associated Ancillary Services
shall be calculated in accordance with [Rate Schedule] attached hereto
and made a part of this Service Agreement. The rates or rate
methodology used to calculate the charges for service under that
schedule were promulgated and may be modified pursuant to applicable
Federal laws, regulations and policies.
Attachment G
Network Operating Agreement
To be filed by the Transmission Provider at such time as the
Transmission Provider has negotiated or
[[Page 50603]]
offered a Network Integration Transmission Service Agreement. The terms
and conditions under which the Network Customer will be required to
operate its facilities and the technical and operational matters
associated with the implementation of Network Integration Transmission
Service and this Service Agreement will be specified in a separate
Network Operating Agreement.
The Network Operating Agreement will include provisions addressing
the following:
Authorized Representatives of the Parties
Network Operating Committee
Load Following
System Protection
Redispatch to Manage Transmission Constraints
Maintenance of Facilities
Load Shedding
Operation Impacts
Service Conditions
Data, Information and Reports
Metering
Communications
System Regulation and Operating Reserves
Assignment
Notices
Accounting for Transmission Losses
(Alternative language to be used only by UGPR) Network Integration
Transmission provided by the Transmission Provider will be subject to
all operating and scheduling procedures and protocols of the Mid-
Continent Area Power Pool (MAPP) as stated in the MAPP Restated
Agreement and the MAPP Operating Handbook as existing and as may be
amended, superseded or replaced. The Transmission Provider will
therefore not enter into a separate Network Operating Agreement with
each Network Customer.
Attachment H
Annual Transmission Revenue Requirement For Network Integration
Transmission Service
1.0 The Annual Transmission Revenue Requirement for purposes of the
Network Integration Transmission Service is to be set forth in a
separate Rate Schedule.
2.0 The amount in 1 shall be effective until amended by the
Transmission Provider or modified by the Commission pursuant to
applicable Federal laws, regulations and policies, and may be revised
upon written notice to the Transmission Customer.
3.0 The Transmission Provider will charge the Network Customer a
charge equal to ten (10) times the highest charge incurred during the
preceding twelve months for any use of the Transmission Provider's
Transmission System not in compliance with the terms and conditions of
Part III of this Tariff.
Attachment I
Index of Network Integration Transmission Service Customers
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Customer Date of service agreement
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Attachment J
Provisions Specific To The Transmission Provider
1.0 Change of Rates
Rates applicable under the Service Agreements shall be subject to
change by Western in accordance with appropriate rate adjustment
procedures. If at any time the United States promulgates a rate
changing a rate then in effect under a Service Agreement, it will
promptly notify the Transmission Customer thereof. Rates shall become
effective as to the Service Agreements as of the effective date of such
rate. The Transmission Customer, by written notice to the Transmission
Provider within ninety (90) days after the effective date of a rate
change, may elect to terminate the service billed by the Transmission
Provider under the new rate. Said termination shall be effective on the
last day of the billing period requested by the Transmission Customer
not later than two (2) years after the effective date of the new rate.
Service provided by the Transmission Provider shall be paid for at the
new rate regardless of whether the Transmission Customer exercises the
option to terminate service.
2.0 Contingent Upon Appropriations
Where activities provided for in the Service Agreement extend
beyond the current fiscal year, continued expenditures by the
Transmission Provider are contingent upon Congress making necessary
appropriations required for the continued performance of the
Transmission Provider's obligations under the Service Agreement. In the
event that such appropriation by Congress is not made, The Transmission
Customer hereby releases the Transmission Provider from its obligations
under the Service Agreement and from all liability due to the failure
of Congress to make such appropriation.
3.0 Covenant Against Contingent Fees
The Transmission Customer warrants that no person or selling agency
has been employed or retained to solicit or secure the Service
Agreement upon a contract or understanding for a commission,
percentage, brokerage, or contingent fee, excepting bona fide employees
or bona fide established commercial or selling agencies maintained by
the Transmission Customer for the purpose of securing business. For
breach or violation of this warranty, the Transmission Provider shall
have the right to annul the Service Agreement without liability or in
its discretion to deduct from the Service Agreement price or
consideration the full amount of such commission, percentage,
brokerage, or contingent fee.
4.0 Contract Work Hours and Safety Standards
The Service Agreement, to the extent that it is of a character
specified in Section 103 of the Contract Work Hours and Safety
Standards Act (Act), 40 U.S.C. Sec. 329 (1986), is subject to the
provisions of the Act, 40 U.S.C. Secs. 327-333 (1986), and to
regulations promulgated by the Secretary of Labor pursuant to the Act.
5.0 Equal Opportunity Employment Practices
Section 202 of Executive Order No. 11246, 43 Fed. Reg. 46501
(1978), which provides, among other things, that the Transmission
Customer will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, or national origin,
is incorporated by reference in the Service Agreement.
6.0 Use of Convict Labor
The Transmission Customer agrees not to employ any person
undergoing sentence of imprisonment in performing the Service Agreement
except as provided by 18 U.S.C. 4082(c)(2) and Executive Order 11755,
December 29, 1973.
7.0 Independent System Operator
The Parties understand that the Transmission Provider may join an
Independent System Operator. An Independent System Operator (ISO) is
defined as a Commission regulated control area operator of the ISO
transmission grid. Its responsibilities include providing non-
discriminatory access, managing congestion, and maintaining the
reliability and security of the grid. In the event the Transmission
Provider either joins or is required to conform to protocols of the
Independent System Operator, the
[[Page 50604]]
Parties agree that the Transmission Provider either may (1) modify the
relevant provisions of the Tariff and the Service Agreement to conform
them to the terms and conditions required by the Independent System
Operator, or (2) terminate the Service Agreement by providing a one-
year written notice to the Transmission Customer.
8.0 Third Party Rights
The Service Agreements shall not be construed to create rights in,
or to grant remedies to, or delegate any duty, obligation, or
undertaking established therein to any third party as a beneficiary to
such Service Agreement.
9.0 Entire Agreement
The Service Agreements, including the Tariff, together with the
specifications under such Service Agreement and any completed
scheduling forms shall constitute the entire understanding between the
Transmission Provider and the Transmission Customer with respect to
Transmission Service thereunder.
10.0 Power Supply Obligations
The Transmission Provider shall not be obligated to supply capacity
and energy from its own sources or from its purchases from other
neighboring systems during Interruptions or Curtailments in the
delivery by the Transmission Provider or delivery to the Transmission
Provider by the Delivering Party of capacity and energy for
Transmission Service hereunder, and nothing in the Service Agreement or
in the Transmission Customer's agreements with others shall have the
effect of making, nor shall anything in the Service Agreement or said
agreements with others be construed to require the Transmission
Provider to take any action which would make the Transmission Provider,
directly or indirectly, a source of power supply to the Transmission
Customer, to any Delivering Party or Receiving Party, or to any
ultimate recipient other than through the provision of Operating
Reserve Service and emergency power.
11.0 Federal Law
Performance under the Tariff and Service Agreement shall be
governed by applicable Federal law.
12.0 Continuing Obligations
The applicable provisions of the Service Agreement will continue in
effect after termination of the Service Agreement to the extent
necessary to provide for final billing, billing adjustments and
payments, and with respect to liability and indemnification from acts
or events that occurred while this Service Agreement was in effect.
13.0 Net Billing
Payments due the Transmission Provider by a Transmission Customer
may, at the Transmission Provider's discretion, be offset against
payments due the Transmission Customer by the Transmission Provider for
the use of transmission facilities, operation and maintenance of
electric facilities, and other services. Net billing for the sale or
exchange of electric capacity and energy will be as mutually agreed.
For services included in net billing procedures, payments due one Party
in any month shall be offset against payments due the other Party in
such month, and the resulting net balance shall be paid to the Party in
whose favor such balance exists. The Parties shall exchange such
reports and information that either Party requires for billing
purposes. Net billing shall not be used for any amounts due which are
in dispute.
14.0 Bill Crediting
As agreed in the Service Agreement, payments due the Transmission
Provider by a Transmission Customer shall be paid by a Transmission
Customer to a third party when so directed by the Transmission
Provider. Any third party designated to receive payment in lieu of the
Transmission Provider, and the amount to be paid to that party, will be
so identified in writing to a Transmission Customer with the monthly
power bill. The payment to the third party shall be due and payable by
the payment due date specified on the Transmission Provider's bill.
When remitting payment to a designated third party, a Transmission
Customer shall indicate that such payment is being made on behalf of
the Transmission Provider. The Transmission Provider shall credit a
Transmission Customer for the amount paid as if payment had been made
directly to the Transmission Provider. All other payment provisions
shall remain in full force and effect.
Attachment K
Transmission Provider Authorities And Obligations
Western Area Power Administration (Western) was established on
December 21, 1977, pursuant to Section 302 of the Department of Energy
(DOE) Organization Act, Public Law 95-91, dated August 4, 1977.
Western's primary and long-standing mission is to market Federal power
resources with emphasis on maintaining an efficient and reliable power
system. Western is a partial requirements power supplier that markets
and transmits Federal power resources in 15 Central and Western States
encompassing a geographic area of 3.38 million-square-kilometers (1.3
million-square-miles). Western has four Customer Service Regional
Offices and the Colorado River Storage Project Customer Service Center,
each referred to in the Tariff as Regional Office. Western markets
power and provides transmission service from various multi-purpose
hydroelectric projects and one coal-fired power plant in Arizona.
Western will sell transmission service using Federally owned or
controlled facilities only to the extent that transmission capacity is
available in excess of that needed to deliver Federal power.
Western is not a public utility under Sections 205 and 206 of the
Federal Power Act and is not specifically subject to the requirements
of the Federal Energy Regulatory Commission's (FERC or Commission)
Final Orders 888 and 888-A. Western is a transmitting utility subject
to Section 211 of the Federal Power Act as amended by the Energy Policy
Act of 1992. The Department of Energy has issued a Power Marketing
Administration Open Access Transmission Policy that supports the intent
of the FERC Notice of Proposed Rulemaking for Open Access Transmission.
Western's Regional Offices reserved transmission capacity shall
include capacity sufficient to deliver Federal power resources,
including statutory and firm electric service and project use power.
The Tariff is intended to provide for transmission of non-Federal power
on the unused capacity of transmission facilities under the
jurisdiction or control of each of Western's Regional Offices, as well
as each Regional Office's use of those facilities for third party
sales, in a manner consistent with the spirit and intent of FERC Orders
888 and 888-A.
By statute, Western markets Federal power resources to Federal
Customers, defined for purposes of this Tariff to be the statutory and
firm electric service customers and project use power users of the
Federal government. Western's transmission system was built primarily
to enable the delivery of Federal power to satisfy contractual
obligations, which are generally only partial requirements. Western
interprets the term, ``Native Load Customers'' as used under this
Tariff to be analogous to and the closest equivalent of Western's
Federal Customers. Western therefore will treat its Federal Customers
in a manner analogous to the treatment of Native Load Customers by
public utilities.
[[Page 50605]]
Western is committed to providing comparable open-access transmission
service to all customers. However, nothing in this Tariff shall alter,
amend or abridge the statutory or contractual obligations of Western to
market and deliver Federal power resources to Federal Customers and to
repay the Federal investment in such projects.
Western has prepared this Tariff and service agreements to provide
transmission service comparable to that required of public utilities by
FERC Orders 888 and 888-A, and to implement the spirit and intent of
those Orders consistent with the DOE Policy. An entity desiring
transmission service from Western must comply with the application
procedures outlined herein. The review and approval requirements
detailed herein will apply to all requesting parties.
Western will perform the necessary studies or assessments for
evaluating requests for transmission service as set forth in the
Tariff. Any facility construction or interconnection necessary to
provide transmission service will be subject to Western's General
Requirements for Interconnection which are available upon request.
It is Western's intent to provide Firm and Non-Firm Point-to-Point
Transmission Service and Network Integration Transmission Service
consistent with the Tariff. The specific terms and conditions for
providing transmission service to a customer will be included in a
Service Agreement. Operating Procedures, Available Transmission
Capacity (ATC), and System Impact Methodology are defined in the
Attachments. Western's rates are developed under a separate public
process pursuant to applicable Federal law and regulations. Therefore,
rates and charges for specific services will be set forth in the
appropriate Regional rates schedules attached to each Service
Agreement.
Based on a reasonable level of risk, Western has marketed the
maximum practical amount of power from each of its projects, leaving
little flexibility for provision of additional power services. Changes
in water conditions frequently affect the ability of hydroelectric
projects to meet obligations on a short term basis. The unique
characteristics of the hydro resource, Western's marketing plans, and
the limitations of the resource due to changing water conditions may
limit Western's ability to provide generation-related services
including ancillary services and redispatching using Federal hydro
resources.
Colorado River Storage Project Customer Service Center
The Colorado River Storage Project Customer Service Center (CRSP
CSC), located in Salt Lake City, Utah, markets power from three Federal
multipurpose water development projects; the Colorado River Storage
Project, the Collbran Project, and the Rio Grande Project, collectively
called the Integrated Projects. The hydroelectric facilities associated
with these projects include: Flaming Gorge and Fontelle powerplants on
the Green River; Blue Mesa, Morrow Point, and Crystal powerplants on
the Gunnison River; Upper and Lower Molina powerplants of the Collbran
Project in Western Colorado; the largest of the CRSP facilities, Glen
Canyon power plant on the Colorado River; and Elephant Butte power
plant, part of the Rio Grande Project on the Rio Grande River in South
Central New Mexico. The CRSP transmission system consists of high-
voltage transmission lines and attendant facilities extending from
Arizona, into New Mexico, through Colorado, and into portions of Utah
and Wyoming. The CRSP CSC uses the CRSP transmission system to meet its
commitments to its federal customers, point-to-point transmission
customers, and exchange power contractors. The CRSP CSC must,
therefore, reserve sufficient transmission capacity to meet these long-
term obligations. The CRSP CSC also needs to reserve capacity in its
transmission system to enable it to deliver power produced by the
Integrated Projects hydroelectric powerplants during periods when flood
control water releases produce greater than normal generation levels.
The CRSP office, located in Salt Lake City, is a member of the
Western Regional Transmission Association and Southwest Regional
Transmission Association and operates within the Western Systems
Coordinating Council.
The CRSP CSC does not operate a control area and as such may be
unable to provide some or all of the services under the Tariff from its
Integrated Projects hydroelectric resources, including, but not limited
to, ancillary services and Network Integration Transmission Service.
The CRSP CSC application processing fee will be $1,600.
Desert Southwest Region
The Desert Southwest Region (DSR) manages transmission facilities
in the states of Arizona, California, and Nevada. These transmission
facilities were constructed for the primary purpose of marketing power
from the Navajo Project for the Central Arizona Project, Boulder Canyon
Project and the Parker-Davis Project. The Pacific Northwest-Pacific
Southwest Intertie Project (Intertie), in which the DSR has ownership
rights and administers the southern portion, is a part of the DSR
transmission facilities. Transmission facilities of the Parker-Davis
Project and the Intertie Project are included in this Tariff. The DSR
transmission facilities are integrated with transmission facilities of
several non-Federal entities. DSR is a member of the Southwest Regional
Transmission Association and the Western Regional Transmission
Association and its system is operated in the Western Systems
Coordinating Council, and adheres to their criteria. DSR manages a
control area operations center in its Desert Southwest Regional Office.
The DSR office and the control area operations both are located in
Phoenix, Arizona.
The DSR application processing fee will be $1,700.
Rocky Mountain Region
The Rocky Mountain Region (RMR) manages transmission facilities in
the states of Colorado, Wyoming, Nebraska, and Kansas which were
constructed for the primary purpose of marketing power from the Pick-
Sloan Missouri Basin Program--Western Division. The RMR office and
control area operations center is located in Loveland, Colorado. The
RMR is a member of the Western Regional Transmission Association and
its system is operated in the Western Systems Coordinating Council.
For RMR, the rates for Point-to-Point and Network Integration
Transmission Service charged pursuant to the Tariff will be calculated
using the costs of the transmission facilities of the Pick-Sloan
Missouri Basin Program--Western Division. The rates for the ancillary
services will be calculated using the costs of the generation
facilities of the Pick-Sloan Missouri Basin Program--Western Division
and the Fryingpan--Arkansas Project.
The RMR application processing fee will be $1,600.
Sierra Nevada Region
The Sierra Nevada Customer Service Region (SNR), located in Folsom,
California, manages the Central Valley Project (CVP) transmission
facilities in the state of California. These facilities were
constructed for the primary purpose of marketing power resources from
the CVP. SNR also has ownership rights to capacity in two multi-party
transmission systems, the Pacific Northwest-Pacific Southwest Intertie
Project (Pacific AC Intertie), and the
[[Page 50606]]
California-Oregon Transmission Project (COTP). Congress authorized
SNR's participation in the Pacific AC Intertie for the purpose of
importing power from the Pacific Northwest. COTP rights were acquired
pursuant to Public Law 98-630, primarily for the purpose of delivering
power to the United States Department of Energy Laboratories (DOE Labs)
and Federal Fish and Wildlife refuges. Long-term use of the Pacific AC
Intertie and COTP by third parties is restricted under existing
contracts. SNR is a member of the Western Regional Transmission
Association regional transmission group and operates within the Western
Systems Coordinating Council reliability council.
The SNR does not operate a control area and as such may be unable
to provide some or all of the services under the Tariff, including but
not limited to, ancillary services and Network Integration Transmission
Service.
The SNR application processing fee will be $1,300.
Upper Great Plains Region
The Upper Great Plains Region (UGPR) manages transmission
facilities in the states of Montana, North Dakota, South Dakota,
Nebraska, Minnesota, and Iowa which were constructed for the primary
purpose of marketing power from the Pick-Sloan Missouri Basin Program--
Eastern Division. The UGPR office is located in Billings, Montana. The
UGPR manages a control area operations center in Watertown, South
Dakota. The eastern portion of the UGPR system is operated in the Mid-
Continent Area Power Pool (MAPP) reliability council. The western
portion of the system is operated in the Western Systems Coordinating
Council.
The UGPR transmission facilities are integrated with the
transmission facilities of Basin Electric Power Cooperative (Basin) and
Heartland Consumers Power District (Heartland) such that transmission
services are provided over an integrated transmission system. UGPR
rates for Point-to-Point and Network Integration Transmission Service
charged pursuant to the Tariff will be calculated using the costs of
the transmission facilities of UGPR, Basin, and Heartland that are
included in the Transmission System. This Transmission System is also
called the Integrated System (IS) and the rates are identified as IS
Rates. The integration of these facilities as the IS and the use of the
IS rates have been approved by the Administrator of Western through
December 19, 1997. The definition of the Transmission System and the
rates for Point-To-Point and Network Integration Transmission Service
may be subject to change upon conclusion of an Open Access Transmission
Service rate development process conducted pursuant to applicable
Federal Law and regulations.
Both Basin and Heartland also own generating facilities and must
commit to deliver the output of those resources to their respective
members. Basin and Heartland will therefore reserve sufficient capacity
in their transmission facilities to deliver that output.
Any Transmission Customer taking service under these Guidelines
shall be subject to a Stranded Cost Charge payable to either UGPR,
Basin or Heartland if such service is used for the transmission of
power or energy that replaces wholly or in part, power or energy
supplied by Western, Basin or Heartland respectively.
The Stranded Cost Charge of Basin shall be applicable regardless of
whether the transmission relates to power and/or energy that is
purchased by or on behalf of a Generation and Transmission Cooperative
member of Basin (G&T), a Distribution Cooperative member of Basin or
G&T, or a retail customer of a Distribution Cooperative member of Basin
or a G&T.
The Stranded Cost Charge of Heartland shall be applicable whether
the transmission service relates to power and/or energy that is
purchased by or on behalf of a municipal customer of Heartland or a
retail customer of a municipal customer of Heartland.
Stranded costs will be recovered only from a Transmission Customer
who obtains transmission service under access rights granted through
the Transmission Provider's compliance tariff developed pursuant to
FERC Final Orders 888 and 888-A and causes either UGPR, Basin or
Heartland to incur stranded costs. Stranded costs will be recovered
through the terms and conditions of a separate contract entered into
either by UGPR and the Transmission Customer or Basin and the
Transmission Customer or Heartland and the Transmission Customer.
The UGPR application processing fee will be $1,700.
[FR Doc. 97-25332 Filed 9-25-97; 8:45 am]
BILLING CODE 6450-01-P
