[Federal Register Volume 62, Number 186 (Thursday, September 25, 1997)]
[Notices]
[Pages 50307-50335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25333]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Open Access Transmission Service Tariff
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of proposed tariff.
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SUMMARY: The Southwestern Power Administration (Southwestern) 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 and regulations applicable to Southwestern'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
November 10, 1997. To be assured of consideration, all written comments
must be received by the end of the comment period. Southwestern has
scheduled a public meeting to discuss the proposed Tariff on October 9,
1997, at 1:30 p.m., CDT, in Tulsa, Oklahoma. An opportunity for
interested parties to make oral comments on the proposed Tariff is
scheduled for October 20, 1997, at 1:30 p.m. CDT, also in Tulsa,
Oklahoma.
ADDRESSES: Southwestern will hold its public meetings at Southwestern's
offices, Room 1402, Williams Center Tower I, One West Third Street,
Tulsa, Oklahoma 74103. All copies of written comments should be
submitted to the Assistant Administrator, Corporate Operations,
Southwestern Power Administration, P.O. Box 1619, Tulsa, Oklahoma,
74101.
FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant
Administrator, Office of Corporate Operations, Southwestern Power
Administration, U.S. Department of Energy, P.O. Box 1619, Tulsa, OK
74101, (918) 595-6696. Electronic Mail: R[email protected]; Facsimile:
(918) 595-6656.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Procedures
II. Background
III. Summary of Changes from the FERC Pro Forma Tariff
IV. Coordination with Adoption of Open Access Transmission Rates
I. Procedures
After all public comments have been considered, Southwestern will
prepare a final Tariff and publish it in the Federal Register.
Southwestern will submit this final Tariff to FERC under a non-
jurisdictional docket, and will request a declaratory order that the
Tariff meets FERC comparability standards as set forth in FERC Orders
888 and 888-A. Interested parties will have an opportunity to comment
on the Tariff by following appropriate procedures to intervene with
FERC. Southwestern will make any necessary changes required by the FERC
declaratory order, and will publish the final approved Tariff in the
Federal Register.
There will be a public meeting on October 9, 1997, to discuss the
proposed tariff. In addition, persons interested in attending the
public meeting tentatively scheduled for October 20, 1997, should
indicate in writing, by letter or facsimile transmission (918-595-
6656), on or before October 15, 1997, of their intent to appear. No
meeting will be held if no one indicates an intent to attend.
II. Background
Southwestern Power Administration (Southwestern) was created by
Secretarial Order No. 1865, dated August 31, 1943, as an agency of the
Department of the Interior, to carry out the power marketing
responsibilities assigned to the Secretary of Interior by
[[Page 50308]]
Executive Order 9366, dated July 30, 1943, and Order 9373, dated August
30, 1943. Section 5 of the Flood Control Act of December 22, 1944 (58
Stat. 887, 890; 16 U.S.C. 825s) broadened the power marketing
responsibilities of the Secretary of the Interior by placing in him the
responsibility for marketing the electric power and energy generated at
reservoir projects built by and under the control of the Department of
the Army. The U.S. Department of Energy was created by an Act of the
U.S. Congress under the Department of Energy Organization Act, Public
Law 95-91, dated August 4, 1977. Pursuant to Sections 302(a) and 301(b)
of such Act, the functions of the Secretary of the Interior and the
Federal Power Commission under Section 5 of the Flood Control Act of
1944 which relate to Southwestern were transferred to and vested in the
Secretary of Energy effective October 1, 1977.
Under the said Section 5, Southwestern is enjoined to market power
and energy generated at U.S. Army Corps of Engineers dams to public
bodies and cooperatives, in such manner as to encourage the most
widespread use of the resource, at the lowest possible rates to
consumers consistent with sound business principles. The dams from
which Southwestern currently markets power and energy are located in
the States of Arkansas, Missouri, Oklahoma, and Texas. By the nature of
its hydroelectric power resource, Southwestern is a partial
requirements supplier to 93 municipal, cooperative, and military
electric systems in the States of Arkansas, Kansas, Louisiana,
Missouri, Oklahoma, and Texas. Southwestern markets Federal power and
energy and owns and operates a transmission system to integrate its
hydroelectric resources in order to reliably deliver such power and
energy. Southwestern markets Transmission Services for the transmission
of non-Federal power and energy across Southwestern's transmission
system only to the extent that capacity is available over and above the
capacity required to fulfill Southwestern's mission. Nothing in the
proposed Tariff is intended to alter, amend, or abridge Southwestern's
statutory obligation to market Federal power and to repay the Federal
investment in the hydroelectric generation projects from which it
markets power as well as the investment in its associated transmission
system.
The Federal Energy Regulatory Commission (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, Department of Energy (DOE), adopted a ``Power Marketing
Administration Open Transmission Access Policy'' in which the Secretary
states that DOE supports the spirit and intent of the NOPR and directs
the Power Marketing Administrations to prepare tariffs which 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 supplementary Order 888-A, published at 62 FR 12273, on
March 14, 1997. Southwestern's Tariff includes an Attachment J which is
specific to Southwestern and is not found in the Pro Forma Tariff (Pro
Forma) published as Appendix B to FERC Order 888-A.
III. Summary of Changes from the FERC Pro Forma Tariff
Southwestern has adopted the Pro Forma as the basis for its open
access Tariff. However, Southwestern has made a number of changes that
it deems necessary to reflect Southwestern's unique status as a Federal
agency. Southwestern describes this unique status in an added
Attachment J, ``Authorities and Obligations,'' to its Tariff.
Southwestern has identified three general areas of difference from
the Pro Forma in its Tariff that it believes are necessary to adapt the
Pro Forma to the requirements of its unique status. These differences
are:
(1) FERC Jurisdictional Issues
Since Southwestern is not a jurisdictional utility under the FERC,
provisions which are based on such jurisdiction are deleted from the
Pro Forma. This general approach necessitated deletions in Sections
1.10, 2.2, 9, 12.1, 13.3, 14.3, 20.3, 26, 29.5, 34, and 34.5 of the Pro
Forma. Since Southwestern is not required to file its service
agreements with the FERC, deletions and other changes were made in
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 of the Pro Forma.
(2) Impact of Federal Law and Regulations.
Southwestern, as a Federal agency, is subject to Federal laws,
regulations, and policies which supersede certain provisions in the Pro
Forma. This fact accounts for most differences between the Pro Forma
and Southwestern's Tariff, which changes fall into three general
categories:
(a) General statements of Southwestern's requirements to conform to
Federal laws and regulations, or references to specific Federal laws
and regulations, account for additions and other changes to Sections
1.2, 10.2, 12.2, 18.2, 26, 34.5, Schedules 1 through 8 of the Pro
Forma, and the submission of a new Attachment J.
(b) Under the Anti-Deficiency Act and appropriations laws,
Southwestern cannot normally use appropriated funds to do work for
others. Likewise, Southwestern is prohibited from entering into
contracts that obligate expenditure of funds it does not have. Finally,
some kinds of work, such as construction changes to facilities, are
specifically contingent on the availability of funds to Southwestern,
or on its reimbursable authority to use funds provided by customers,
both of which are provided in the Congressional appropriations process.
These limitations caused additions and other changes in Sections 13.5,
15.4, 19.1, 19.2, 19.4, 19.8, 20.3, 23.2, 28.2, 31.5, 32.1, 32.2, and
32.4 of the Pro Forma.
(c) Southwestern's current financial system and procedures make
collecting deposits for refund and providing for the payment of
interest on deposited funds unduly burdensome. Consequently,
Southwestern has deleted all references to deposits and their return
with interest. Southwestern has substituted provisions for payment of a
processing fee to cover its costs in evaluating applications for firm
transmission service arrangements of one year or longer, or, in the
event that Southwestern is able to provide Network Integration
Transmission Service, for applications for such service. The sections
of the original Pro Forma which are affected by these changes are:
Sections 1.5, 17.3, 17.4, 20.3, 22.2, 29.2, 31.5, 32.1, and 32.4.
(3) Operational Considerations
Southwestern has certain operational considerations that require
changes to the Pro Forma.
(a) The development and filing of Southwestern's rates are dictated
by Federal law and regulations separate and apart from the Tariff. Rate
Schedules, as required by such laws and regulations, will be attached
to Service Agreements in place of or in addition to Schedules 1 through
8. Thus, changes in the language of Pro Forma Section 2.2, and in
Schedules 1 through 8 were required.
(b) Southwestern's primary mission is to market Federal power. The
nature of this resource--hydroelectric power generation--may, under
certain hydrological conditions, restrict Southwestern's ability to
provide some Ancillary Services which support the transmission of non-
Federal power and energy. This limitation is recognized in
[[Page 50309]]
changes to Section 3 and Schedules 3 through 6 of the Pro Forma.
(c) Southwestern added language to Section 10.1 to provide for
notice between the Parties where Force Majeure renders either Party
unable to fulfill obligations under the Service Agreement.
(d) Sections 15.7 and 28.5 cover Real Power Losses, which
Southwestern normally addresses in Service Agreements. Changes were
made to these Sections to acknowledge such practice.
(e) Section 19.2(iii) of the Pro Forma is changed from an internal
reference to Section 20 to a reference to Section 8, which is more
pertinent to Southwestern's administrative procedures.
Attachments
For Attachments A, B, and F, which are the form of the Service
Agreements associated with the Tariff, Southwestern has elected to
describe its proposed agreements, for Firm Transmission Service (2
types, for long- and short-term arrangements); for Non-Firm
Transmission Service; and for Network Integration Transmission Service,
in general terms rather than to publish specific contract language.
Southwestern's practice is to develop standard contracts and to evolve
language, especially for new operational arrangements, over time.
Changes, if any, become part of the new standard language as such
provisions evolve. Also, as a Federal agency, Southwestern has a number
of provisions which are required to be in all its contracts but which
are not directly pertinent to offering transmission service.
Southwestern considers maintaining flexibility to allow continuous
improvements in its contract language to be good policy. Therefore,
Southwestern has described the contract forms rather than prescribed
them. Additionally, this approach avoids unnecessary burdening of the
filing and notice processes for the Tariff by omitting from the text of
the Tariff standard, general provisions which are not directly germane
to the issue of open access for transmission services.
In Attachments C and D, Southwestern acknowledges that, as a member
of the Southwest Power Pool, Southwestern's methodology for determining
Available Transfer Capability and performing System Impact Studies will
follow the methodology of the Southwest Power Pool, which is readily
and publicly available.
Attachments G and H will permit Southwestern to provide Network
Integration Transmission Service, if such service is requested, and if
Southwestern's Transmission System is determined to be capable of
providing such service. Southwestern has no present arrangements
equivalent to Network Service. In the absence of any particular request
for Network Integration Transmission Service, Southwestern has not yet
determined whether Network Service is practicable on its system. Until
such determination is made, Southwestern deemed it advisable to prepare
these attachments with very general language.
Attachment J was developed by Southwestern to describe its
authorities and obligations as a Federal Power Marketing
Administration. Such authorities and obligations are significantly
different from the authorities and obligations of the public utilities
for which the Pro Forma was developed, and this Attachment sets forth
such differences. Attachments E and I, which are indexes of firm and
network contracts, have been left blank.
IV. Coordination With Adoption of Open Access Transmission Rates
Southwestern's rate process is distinct from the rate process used
by public utilities. This process, which includes mandatory public
participation procedures, is described in 10 CFR 903. Additionally,
Southwestern's rates are reviewed by the FERC under different
parameters than those used for review of public utility rates.
Southwestern is presently in the process of preparing new rate
schedules for a FERC filing, and expects such new rates to be
implemented January 1, 1998. The proposed rate schedules for
Transmission Service will be structured in general accordance with the
Pro Forma and Southwestern's Tariff. The new rate schedules will be
attached to Service Agreements executed under the Tariff.
Review Under Executive Order 12866
Southwestern 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.
Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires
Federal agencies to perform a regulatory flexibility analysis if a
proposed regulation is likely to have a significant economic impact on
a substantial number of small entities. By the execution of this
Federal Register notice, the Administrator, Southwestern, certifies
that no significant economic impact on a substantial number of small
entities will occur.
A redline/strikeout comparison of Southwestern's proposed Tariff to
the FERC Pro Forma is available on the Internet at http://www.swpa.gov.
Dated: September 15, 1997.
Michael A. Deihl,
Administrator.
Southwestern Power Administration
Open Access Transmission Service Tariff
Table of Contents
Part I. Common Service Provisions
1 Definitions
1.1 Ancillary Services
1.2 Annual Transmission Costs
1.3 Application
1.4 Commission
1.5 Completed Application
1.6 Control Area
1.7 Curtailment
1.8 Delivering Party
1.9 Designated Agent
1.10 Direct Assignment Facilities
1.11 Eligible Customer
1.12 Facilities Study
1.13 Firm Point-To-Point Transmission Service
1.14 Good Utility Practice
1.15 Interruption
1.16 Load Ratio Share
1.17 Load Shedding
1.18 Long-Term Firm Point-To-Point Transmission Service
1.19 Native Load Customers
1.20 Network Customer
1.21 Network Integration Transmission Service
1.22 Network Load
1.23 Network Operating Agreement
1.24 Network Operating Committee
1.25 Network Resource
1.26 Network Upgrades
1.27 Non-Firm Point-To-Point Transmission Service
1.28 Open Access Same-Time Information System
1.29 Part I
1.30 Part II
1.31 Part III
1.32 Parties
1.33 Point(s) of Delivery
1.34 Point(s) of Receipt
1.35 Point-To-Point Transmission Service
1.36 Power Purchaser
1.37 Receiving Party
1.38 Regional Transmission Group
1.39 Reserved Capacity
1.40 Service Agreement
1.41 Service Commencement Date
1.42 Short-Term Firm Point-To-Point Transmission Service
1.43 System Impact Study
1.44 Third-Party Sale
1.45 Transmission Customer
1.46 Transmission Provider
[[Page 50310]]
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 Obligation
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 Integation Transmission Service
Preamble
28 Nature of Network Integration Transmission Service
28.1 Scope of Service
28.2 Transmission Provider Responsibilities
28.3 Network Integration Transmission Service
28.4 Secondary Service
28.5 Real Power Losses
28.6 Restrictions on Use of Service
29 Initiating Service
29.1 Condition Precedent for Receiving Service
29.2 Application Procedures
29.3 Technical Arrangements To Be Completed Prior to
Commencement of Service
29.4 Network Customer Facilities
29.5 This section is intentionally left blank
30 Network Resources
30.1 Designation of Network Resources
30.2 Designation of New Network Resources
30.3 Termination of Network Resources
30.4 Operation of Network Resources
30.5 Network Customer Redispatch Obligation
30.6 Transmission Arrangements for Network Resources Not
Physically Interconnected With The Transmission Provider
30.7 Limitation on Designation of Network Resources
30.8 Use of Interface Capacity by the Network Customer
30.9 Network Customer Owned Transmission Facilities
31 Designation of Network Load
31.1 Network Load
31.2 New Network Loads Connected With the Transmission Provider
31.3 Network Load Not Physically Interconnected with the
Transmission Provider
31.4 New Interconnection Points
31.5 Changes in Service Requests
31.6 Annual Load and Resource Information Updates
32 Additional Study Procedures For Network Integration Transmission
Service Requests
[[Page 50311]]
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--Form of 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--Authorities and Obligations
Southwestern Power Administration
Open Access Transmission Service Tariff
Part I. Common Service Provisions
1 Definitions
1.1 Ancillary Services: Those services that are necessary to
support the transmission of capacity and energy from resources to loads
while maintaining reliable operation of the Transmission Provider's
Transmission System in accordance with Good Utility Practice.
1.2 Annual Transmission Costs: The total annual cost of the
Transmission System for purposes of Network Integration Transmission
Service shall be the amount specified in Attachment H until amended by
the Transmission Provider or modified by the Commission, pursuant to
Federal law.
1.3 Application: A request by an Eligible Customer for
transmission service pursuant to the provisions of the Tariff.
1.4 Commission: The Federal Energy Regulatory Commission.
1.5 Completed Application: An Application that satisfies all of
the information and other requirements of the Tariff, including any
required application processing fee.
1.6 Control Area: An electric power system or combination of
electric power systems to which a common automatic generation control
scheme is applied in order to:
(1) Match, at all times, the power output of the generators within
the electric power system(s) and capacity and energy purchased from
entities outside the electric power system(s), with the load within the
electric power system(s);
(2) Maintain scheduled interchange with other Control Areas, within
the limits of Good Utility Practice;
(3) Maintain the frequency of the electric power system(s) within
reasonable limits in accordance with Good Utility Practice; and
(4) Provide sufficient generating capacity to maintain operating
reserves in accordance with Good Utility Practice.
1.7 Curtailment: A reduction in firm or non-firm transmission
service in response to a transmission capacity shortage as a result of
system reliability conditions.
1.8 Delivering Party: The entity supplying capacity and energy to
be transmitted at Point(s) of Receipt.
1.9 Designated Agent: Any entity that performs actions or
functions on behalf of the Transmission Provider, an Eligible Customer,
or the Transmission Customer required under the Tariff.
1.10 Direct Assignment Facilities: Facilities or portions of
facilities that are constructed by the Transmission Provider for the
sole use/benefit of a particular Transmission Customer requesting
service under the Tariff. Direct Assignment Facilities shall be
specified in the Service Agreement that governs service to the
Transmission Customer.
1.11 Eligible Customer: (i) Any electric utility (including the
Transmission Provider and any power marketer), Federal power marketing
agency, or any person generating electric energy for sale for resale is
an Eligible Customer under the Tariff. Electric energy sold or produced
by such entity may be electric energy produced in the United States,
Canada or Mexico. However, with respect to transmission service that
the Commission is prohibited from ordering by Section 212(h) of the
Federal Power Act, such entity is eligible only if the service is
provided pursuant to a state requirement that the Transmission Provider
offer the unbundled transmission service, or pursuant to a voluntary
offer of such service by the Transmission Provider. (ii) Any retail
customer taking unbundled transmission service pursuant to a state
requirement that the Transmission Provider offer the transmission
service, or pursuant to a voluntary offer of such service by the
Transmission Provider is an Eligible Customer under the Tariff.
1.12 Facilities Study: An engineering study conducted by the
Transmission Provider to determine the required modifications to the
Transmission Provider's Transmission System, including the cost and
scheduled completion date for such modifications, that will be required
to provide the requested transmission service.
1.13 Firm Point-To-Point Transmission Service: Transmission
Service under this Tariff that is reserved and/or scheduled between
specified Points of Receipt and Delivery pursuant to Part II of this
Tariff.
1.14 Good Utility Practice: Any of the practices, methods and acts
engaged in or approved by a significant portion of the electric utility
industry during the relevant time period, or any of the practices,
methods and acts which, in the exercise of reasonable judgment in light
of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost
consistent with good business practices, reliability, safety and
expedition. Good Utility
[[Page 50312]]
Practice is not intended to be limited to the optimum practice, method,
or act to the exclusion of all others, but rather to be acceptable
practices, methods, or acts generally accepted in the region.
1.15 Interruption: A reduction in non-firm transmission service
due to economic reasons pursuant to Section 14.7.
1.16 Load Ratio Share: Ratio of a Transmission Customer's Network
Load to the Transmission Provider's total load computed in accordance
with Sections 34.2 and 34.3 of the Network Integration Transmission
Service under Part III of the Tariff and calculated on a rolling twelve
month basis.
1.17 Load Shedding: The systematic reduction of system demand by
temporarily decreasing load in response to transmission system or area
capacity shortages, system instability, or voltage control
considerations under Part III of the Tariff.
1.18 Long-Term Firm Point-To-Point Transmission Service: Firm
Point-To-Point Transmission Service under Part II of the Tariff with a
term of one year or more.
1.19 Native Load Customers: The wholesale and retail power
customers of the Transmission Provider on whose behalf the Transmission
Provider, by statute, franchise, regulatory requirement, or contract,
has undertaken an obligation to construct and operate the Transmission
Provider's system to meet the reliable electric needs of such
customers.
1.20 Network Customer: An entity receiving transmission service
pursuant to the terms of the Transmission Provider's Network
Integration Transmission Service under Part III of the Tariff.
1.21 Network Integration Transmission Service: The transmission
service provided under Part III of the Tariff.
1.22 Network Load: The load that a Network Customer designates for
Network Integration Transmission Service under Part III of the Tariff.
The Network Customer's Network Load shall include all load served by
the output of any Network Resources designated by the Network Customer.
A Network Customer may elect to designate less than its total load as
Network Load but may not designate only part of the load at a discrete
Point of Delivery. Where an Eligible Customer has elected not to
designate a particular load at discrete points of delivery as Network
Load, the Eligible Customer is responsible for making separate
arrangements under Part II of the Tariff for any Point-To-Point
Transmission Service that may be necessary for such non-designated
load.
1.23 Network Operating Agreement: An executed agreement that
contains the terms and conditions under which the Network Customer
shall operate its facilities and the technical and operational matters
associated with the implementation of Network Integration Transmission
Service under Part III of the Tariff.
1.24 Network Operating Committee: A group made up of
representatives from the Network Customer(s) and the Transmission
Provider established to coordinate operating criteria and other
technical considerations required for implementation of Network
Integration Transmission Service under Part III of this Tariff.
1.25 Network Resource: Any designated generating resource owned,
purchased, or leased by a Network Customer under the Network
Integration Transmission Service Tariff. Network Resources do not
include any resource, or any portion thereof, that is committed for
sale to third parties or otherwise cannot be called upon to meet the
Network Customer's Network Load on a non-interruptible basis.
1.26 Network Upgrades: Modifications or additions to transmission-
related facilities that are integrated with and support the
Transmission Provider's overall Transmission System for the general
benefit of all users of such Transmission System.
1.27 Non-Firm Point-To-Point Transmission Service: Point-To-Point
Transmission Service under the Tariff that is reserved and scheduled on
an as-available basis and is subject to Curtailment or Interruption as
set forth in Section 14.7 under Part II of the Tariff. Non-Firm Point-
To-Point Transmission Service is available on a stand-alone basis for
periods ranging from one hour to one month.
1.28 Open Access Same-Time Information System (OASIS): The
information system and standards of conduct contained in Part 37 of the
Commission's regulations and all additional requirements implemented by
subsequent Commission orders dealing with OASIS.
1.29 Part I: Tariff Definitions and Common Service Provisions
contained in Sections 2 through 12.
1.30 Part II: Tariff Sections 13 through 27 pertaining to Point-
To-Point Transmission Service in conjunction with the applicable Common
Service Provisions of Part I and appropriate Schedules and Attachments.
1.31 Part III: Tariff Sections 28 through 35 pertaining to Network
Integration Transmission Service in conjunction with the applicable
Common Service Provisions of Part I and appropriate Schedules and
Attachments.
1.32 Parties: The Transmission Provider and the Transmission
Customer receiving service under the Tariff.
1.33 Point(s) of Delivery: Point(s) on the Transmission Provider's
Transmission System where capacity and energy transmitted by the
Transmission Provider will be made available to the Receiving Party
under Part II of the Tariff. The Point(s) of Delivery shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.34 Point(s) of Receipt: Point(s) of interconnection on the
Transmission Provider's Transmission System where capacity and energy
will be made available to the Transmission Provider by the Delivering
Party under Part II of the Tariff. The Point(s) of Receipt shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.35 Point-To-Point Transmission Service: The reservation and
transmission of capacity and energy on either a firm or non-firm basis
from the Point(s) of Receipt to the Point(s) of Delivery under Part II
of the Tariff.
1.36 Power Purchaser: The entity that is purchasing the capacity
and energy to be transmitted under the Tariff.
1.37 Receiving Party: The entity receiving the capacity and energy
transmitted by the Transmission Provider to Point(s) of Delivery.
1.38 Regional Transmission Group (RTG): A voluntary organization
of transmission owners, transmission users and other entities approved
by the Commission to efficiently coordinate transmission planning (and
expansion), operation and use on a regional (and interregional) basis.
1.39 Reserved Capacity: The maximum amount of capacity and energy
that the Transmission Provider agrees to transmit for the Transmission
Customer over the Transmission Provider's Transmission System between
the Point(s) of Receipt and the Point(s) of Delivery under Part II of
the Tariff. Reserved Capacity shall be expressed in terms of whole
megawatts on a sixty (60) minute interval (commencing on the clock
hour) basis.
1.40 Service Agreement: The initial agreement and any amendments
or supplements thereto entered into by the Transmission Customer and
the Transmission Provider for service under the Tariff.
1.41 Service Commencement Date: The date the Transmission Provider
[[Page 50313]]
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: Southwestern Power Administration,
which owns, controls, or operates the facilities used for the
transmission of electric energy in interstate commerce and provides
transmission service under the Tariff.
1.47 Transmission Provider's Monthly Transmission System Peak: The
maximum firm usage of the Transmission Provider's Transmission System
in a calendar month.
1.48 Transmission Service: Point-To-Point Transmission Service
provided under Part II of the Tariff on a firm and non-firm basis.
1.49 Transmission System: The facilities owned, controlled or
operated by the Transmission Provider that are used to provide
transmission service under Part II and Part III of the Tariff.
2 Initial Allocation and Renewal Procedures
2.1 Initial Allocation of Available Transmission Capability
For purposes of determining whether existing capability on the
Transmission Provider's Transmission System is adequate to accommodate
a request for firm service under this Tariff, all Completed
Applications for new firm transmission service received during the
initial sixty (60) day period commencing with the effective date of the
Tariff will be deemed to have been filed simultaneously. A lottery
system conducted by an independent party shall be used to assign
priorities for Completed Applications filed simultaneously. All
Completed Applications for firm transmission service received after the
initial sixty (60) day period shall be assigned a priority pursuant to
Section 13.2.
2.2 Reservation Priority For Existing Firm Service Customers
Existing firm service customers (wholesale requirements and
transmission-only, with a contract term of one-year or more), have the
right to continue to take transmission service from the Transmission
Provider when the contract expires, rolls over or is renewed. This
transmission reservation priority is independent of whether the
existing customer continues to purchase capacity and energy from the
Transmission Provider or elects to purchase capacity and energy from
another supplier. If at the end of the contract term, the Transmission
Provider's Transmission System cannot accommodate all of the requests
for transmission service, the existing firm service customer must agree
to accept a contract term at least equal to a competing request by any
new Eligible Customer and to pay the current rate for such service.
This transmission reservation priority for existing firm service
customers is an ongoing right that may be exercised at the end of all
firm contract terms of one-year or longer.
3 Ancillary Services
Ancillary Services are needed with transmission service to maintain
reliability within and among the Control Areas affected by the
transmission service. The Transmission Provider is required to provide
(or offer to arrange with the local Control Area operator as discussed
below), and the Transmission Customer is required to purchase, the
following Ancillary Services (i) Scheduling, System Control and
Dispatch, and (ii) Reactive Supply and 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
Ancillary Services to the Transmission Customer only to the extent that
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 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
[[Page 50314]]
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 Sec. 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 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 Procedure
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
Sec. 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
[[Page 50315]]
(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,
Southwestern Power Administration. The Transmission Provider shall
continue 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.
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
Disputes Resolution Act, as amended, subject to statutory and
regulatory limits on the Transmission Provider'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.
[[Page 50316]]
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 Sec. 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 Sec. 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 24, 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 Sec. 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 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
[[Page 50317]]
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. 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.
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 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-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 24, 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 B) to an
Eligible Customer when it first submits a Completed Application for
Non-Firm Point-To-Point Transmission Service pursuant to the Tariff.
14.5 Classification of Non-Firm Point-To-Point Transmission Service
Non-Firm Point-To-Point Transmission Service shall be offered under
terms and conditions contained in Part II of the Tariff. The
Transmission Provider undertakes no obligation under the Tariff to plan
its Transmission System in order to have sufficient capacity for Non-
Firm Point-To-Point Transmission Service. Parties requesting Non-Firm
Point-To-Point Transmission Service for the transmission of firm power
do so with the full realization that such service is subject to
availability and to Curtailment or Interruption under the terms of the
Tariff. The Transmission Provider shall specify the rate treatment and
all related terms and conditions applicable in the event that a
Transmission Customer (including Third-Party Sales by the Transmission
Provider) exceeds its non-firm capacity reservation. Non-Firm Point-To-
Point Transmission Service shall include transmission of energy on an
hourly basis and transmission of scheduled short-term capacity and
energy on a daily, weekly or monthly
[[Page 50318]]
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. 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. 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 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 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 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
[[Page 50319]]
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
Administrator, Southwestern Power Administration, P.O. Box 1619, Tulsa,
Oklahoma 74101-1619, 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 Sec. 2.20 including but not limited to the
following:
(i) The identity, address, telephone number and facsimile number of
the entity requesting service
(ii) A statement that the entity requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff
(iii) The 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 processing fee for all requests for Firm
Transmission Service of one year or longer. The processing fee shall be
calculated using the estimated average number of hours required to
process an application. The fee will be posted on the Transmission
Provider's OASIS and may change as average costs/per/hour for the
Transmission Provider change. 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.
[[Page 50320]]
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 Sec. 2.20 including but not limited to the
following:
(i) The identity, address, telephone number and facsimile number of
the entity requesting service.
(ii) A statement that the entity requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff.
(iii) The Point(s) of Receipt and the Point(s) of Delivery.
(iv) The maximum amount of capacity requested at each Point of
Receipt and Point of Delivery; and
(v) The proposed dates and hours for initiating and terminating
transmission service hereunder.
In addition to the information specified above, when required to
properly evaluate system conditions, the Transmission Provider also may
ask the Transmission Customer to provide the following:
(vi) The electrical location of the initial source of the power to
be transmitted pursuant to the Transmission Customer's request for
service.
(vii) The electrical location of the ultimate load.
The Transmission Provider will treat this information in (vi) and
(vii) as confidential at the request of the Transmission Customer
except to the extent that disclosure of this information is required by
this Tariff, by Federal law 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.
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.
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
[[Page 50321]]
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 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 to 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.
[[Page 50322]]
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
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
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
[[Page 50323]]
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 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
[[Page 50324]]
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 the Transmission Provider of
sufficient appropriations, when needed, and the Transmission Customer's
advanced funds.
28.3 Network Integration Transmission Service
The Transmission Provider will provide firm transmission service
over its Transmission System to the Network Customer for the delivery
of capacity and energy from its designated Network Resources to service
its Network Loads on a basis that is comparable to the Transmission
Provider's use of the Transmission System to reliably serve its Native
Load Customers.
28.4 Secondary Service
The Network Customer may use the Transmission Provider's
Transmission System to deliver energy to its Network Loads from
resources that have not been designated as Network Resources. Such
energy shall be transmitted, on an as-available basis, at no additional
charge. Deliveries from resources other than Network Resources will
have a higher priority than any Non-Firm Point-To-Point Transmission
Service under Part II of the Tariff.
28.5 Real Power Losses
Real Power Losses are associated with all transmission service. The
Transmission Provider is not obligated to provide Real Power Losses.
The Network Customer is responsible for replacing losses associated
with all transmission service as calculated by the Transmission
Provider. The applicable Real Power Loss factors are specified in the
Service Agreements.
28.6 Restrictions on Use of Service
The Network Customer shall not use Network Integration Transmission
Service for (i) sales of capacity and energy to non-designated loads,
or (ii) direct or indirect provision of transmission service by the
Network Customer to third parties. All Network Customers taking Network
Integration Transmission Service shall use Point-To-Point Transmission
Service under Part II of the Tariff for any Third-Party Sale which
requires use of the Transmission Provider's Transmission System.
29 Initiating Service
29.1 Condition Precedent for Receiving Service
Subject to the terms and conditions of Part III of the Tariff, the
Transmission Provider will provide Network Integration Transmission
Service to any Eligible Customer provided that: (i) The Eligible
Customer completes an Application for service as provided under Part
III of the Tariff, (ii) the Eligible Customer and the Transmission
Provider complete the technical arrangements set forth in Sections 29.3
and 29.4, (iii) the Eligible Customer executes a Service Agreement
pursuant to Attachment F for service under Part III of the Tariff or
requests in writing that the Transmission Provider provide service
without an executed Service Agreement, and (iv) the Eligible Customer
executes a Network Operating Agreement with the Transmission Provider
pursuant to Attachment G. 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's 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
[[Page 50325]]
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 shall include
an application processing fee. The processing fee shall be calculated
using the estimated average number of hours required to process an
application. The fee will be posted on the Transmission Provider's
OASIS and may change as average costs/per/hour for the Transmission
Provider change. 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 Sec. 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
--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.
[[Page 50326]]
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 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
[[Page 50327]]
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 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.
[[Page 50328]]
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 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 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
[[Page 50329]]
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
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 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
[[Page 50330]]
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 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 the above procedures and attached to
and made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 3
Regulation and Frequency Response Service
Regulation and Frequency Response Service is necessary to provide
for the continuous balancing of resources, generation and interchange,
with load and for maintaining scheduled interconnection frequency at
sixty cycles per second (60 Hz). Regulation and Frequency Response
Service is accomplished by committing on-line generation whose output
is raised or lowered, predominantly through the use of automatic
generating control equipment, as necessary to follow the moment-by-
moment changes in load. The obligation to maintain this balance between
resources and load lies with the Transmission Provider (or the Control
Area operator that performs this function for the Transmission
Provider). The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Regulation and Frequency Response Service obligation. The
charges for Regulation and Frequency Response Service are referred to
below. The amount of Regulation and Frequency Response Service may 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 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 the above procedures
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
[[Page 50331]]
for Energy Imbalance Service will be as set forth below.
The compensation for Energy Imbalance Service is set forth in the
appropriate rate schedule attached to and made part of the applicable
Service Agreement. The rates or rate methodology used to calculate the
charges for service under this schedule were promulgated and may be
modified pursuant to applicable Federal laws, regulations, and
policies.
The Transmission Provider may modify the compensation for Energy
Imbalance Service upon written notice to the Transmission Customer. Any
change to the compensation to the Transmission Customer for Energy
Imbalance Service shall be as set forth in a subsequent rate schedule
promulgated pursuant to the above procedures 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 may 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 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 the
above procedures and attached to and made part of the applicable
Service Agreement. The Transmission Provider shall charge the
Transmission Customer in accordance with the rate then in effect.
Schedule 6
Operating Reserve--Supplemental Reserve Service
Supplemental Reserve Service is needed to serve load in the event
of a system contingency; however, it is not available immediately to
serve load but rather within a short period of time. Supplemental
Reserve Service may be provided by generating units that are on-line
but unloaded, by quick-start generation or by interruptible load. The
Transmission Provider must offer this service when the transmission
service is used to serve load within its Control Area. The Transmission
Customer must either purchase this service from the Transmission
Provider or make alternative comparable arrangements to satisfy its
Supplemental Reserve Service obligation. The charges for Supplemental
Reserve Service are referred to below. The amount of Supplemental
Reserve Service may 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 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 the
above procedures 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 its rate schedule
for Firm Point-to-Point Transmission Service 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 the above procedures
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
its rate schedule for Non-Firm Point-to-Point Transmission Service
attached to and made a part of the applicable
[[Page 50332]]
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 the above procedures
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
Southwestern intends for future Service Agreements for Firm Point-
to-Point Transmission Service to be constituted as follows:
Type 1--Long-Term Firm
Point-to-Point Transmission Service Agreements will be executed for
each Point-to-Point arrangement, and will consist of the following
components:
a. The initial document with signatures of the Parties (Part A),
similar to the initial document form suggested in Attachment A of the
Pro Forma Tariff published as Appendix B of FERC Order 888-A, with
added provisions to include, but not be limited to:
i. Provisions reserving the right to change rates and contract
provisions which may be affected by statutory and regulatory
requirements imposed on the Transmission Provider, as well as changes
in losses and other operational matters which may be affected by
changing conditions for operation of the Transmission Provider's
Transmission System.
ii. Requirements for conforming to the interchange standards of the
North American Electric Reliability Council and the Southwest Power
Pool.
iii. Limitations on the Transmission Provider's obligations to
provide for deficiencies in Third-Party resources and to notify parties
in regard to suspensions or reductions due to the actions of Third
Parties.
b. The Specifications for Long-Term Firm Transmission Service (Part
B), in a form similar to that of the specification document suggested
in Attachment A of the Pro Forma Tariff published as Appendix B of FERC
Order 888-A, with added provisions to include, but not be limited to:
i. Describing the service from information provided in the
Transmission Customer's Completed Application.
ii. Listing of charges, including information on Ancillary
Services.
c. The General Provisions Applicable to Transmission Service (Part
C), including, but not limited to:
i. Special payment terms including provision for sending payments
to a U.S. Treasury lockbox, payment by EFT, and other applicable
procedures relating to billing and payment in addition to those
provided in the Tariff.
ii. Standard provisions required by a Federal agency in its
contracts, such as availability of funds and certain socioeconomic
clauses.
iii. Facilities issues including environmental and safety
provisions for entry and use, if any, of the Transmission Provider's
property by representatives of the Transmission Customer, and
provisions related to upgrade of facilities and mutual assistance of
the Parties. These provisions would not be included in any contract
with a Transmission Customer to which they are not applicable.
Type 2--Short-Term Firm
Point-to-Point Transmission Service Agreements will be executed as
enabling agreements for a specified term under which the Transmission
Customer can request various specific transactions in accordance with
the Tariff during the term of the Agreement, and will consist of the
following components:
a. The initial document as described above in 1. (Part A),
b. General Terms and Conditions for Short-Term Firm Transmission
Service, (Part B), including, but not limited to:
i. Provision for the Transmission Customer to fill out an
Application which lists certain information related to proposed point-
to-point arrangements as ``various.''
ii Procedures for requesting service and submitting schedules for
specific transactions under the enabling agreement.
iii Parameters for maximum and minimum periods for requesting
Short-Term Firm capacity reservations modeled on Section 18.3 of the
Tariff.
iv Listing of charges, including information on Ancillary Services.
c. General Provisions Applicable to Transmission Service (Part C),
as described above under Contract Type 1.
Attachment B
Form Of Service Agreement For Non-Firm Point-To-Point Transmission
Service
Non-Firm Point-to-Point Transmission Service Agreements will be
executed as enabling agreements for a specified term under which the
Transmission Customer can request a variety of transactions for Non-
Firm Transmission Service in accordance with the Tariff during the term
of the agreement, and will consist of the following components:
1. The initial document with signatures of the Parties (Part A),
similar to the initial document form suggested in Attachment B of the
Pro Forma Tariff published as Appendix B of FERC Order 888-A, with
added provisions to include, but not be limited to:
a. Provisions reserving the right to change rates and contract
provisions which may be affected by statutory and regulatory
requirements imposed on the Transmission Provider, as well as changes
in losses and other operational matters which may be affected by
changing conditions for operation of the Transmission Provider's
Transmission System.
b. Requirements for conforming to the interchange standards of the
North American Electric Reliability Council and the Southwest Power
Pool.
c. Limitations on the Transmission Provider's obligations to
provide for deficiencies in Third-Party resources and to notify parties
in regard to suspensions or reductions due to the actions of Third
Parties.
2. The General Terms and Conditions for Non-Firm Transmission
Service (Part B), including, but not limited to:
a. Provision for the Transmission Customer to fill out an
Application
[[Page 50333]]
which lists information on proposed point-to-point arrangements as
``various.''
b. Procedures for requesting service and submitting schedules for
individual transactions.
c. Listing of charges, including information on Ancillary Services.
3. The General Provisions Applicable to Transmission Service (Part
C), including, but not limited to:
a. Special payment terms including provision for sending payments
to a U.S. Treasury lockbox, payment by EFT, and other applicable
procedures relating to billing and payment in addition to those
provided in the Tariff.
b. Standard provisions required by a Federal agency in its
contracts, such as availability of funds and socioeconomic clauses.
c. Facilities issues including environmental and safety provisions
for entry and use, if any, of the Transmission Provider's property by
representatives of the Transmission Customer, and provisions related to
upgrade of facilities and mutual assistance of the Parties. These
provisions would not be included in any contract with a Transmission
Customer to which they are not applicable.
Attachment C
Methodology to Assess Available Transmission Capability
The Transmission Provider is a member of the Southwest Power Pool
(SPP), and follows the SPP's approach in the determination of Available
Transfer Capability (ATC) and Total Transfer Capability. The SPP does
seasonal transfer studies to determine the inter-area transfer
capabilities. The methodology uses standard incremental transfer
capability techniques that recognize thermal, voltage, and stability
limitations as well as contractual limitations. This methodology is
based on NERC Criteria, Operating Policies, and Reference Documents
related to interchange and transfer capability estimates.
The Transmission Provider will post on the OASIS the values
calculated by the SPP. When ATC approaches zero for any interface, the
Transmission Provider may do dedicated, off-line studies in accordance
with SPP methodology to update the seasonal values of ATC calculated by
the SPP.
Attachment D
Methodology for Completing a System Impact Study
The Transmission Provider may require System Impact Studies to
determine the feasibility of providing Transmission Service under this
Tariff. The System Impact Studies will follow the criteria and
procedures as described below. In determining the level of capacity
available for new Transmission Service requests, the Transmission
Provider may exclude the capacity needed to meet current and reasonably
forecasted load of Native Load Customers and Network Customers,
existing Firm Point-to-Point Transmission Service customers, previously
pending applications for Firm Point-to-Point Transmission Service, and
the capacity needed to meet existing contractual obligations.
Point-To-Point Service
The Transmission Provider will do a System Impact Study for a
Point-to-Point Transmission Service request by simulating the proposed
transaction along with all other contracted and pending uses of the
transmission system of equal or greater priority. Criteria will be the
same as those used to determine the ATC limits posted on the OASIS.
Network Integration Service
The Transmission Provider will do a System Impact Study for a
Network Integration Transmission Service request using the criteria and
assessment practices as detailed in Parts 4 and 5 of the Transmission
Provider's annual FERC Form 715 submittal.
Attachment E
Index of Point-To-Point Transmission Service Customers
Customer Date of Service Agreement
This Attachment E is intentionally left blank.
Attachment F
Form of Service Agreement For Network Integration Transmission Service
Note: Transmission Provider will not immediately offer Network
Integration Transmission Service due to limits in its Transmission
System and to concerns relating to its statutory and regulatory
requirements to set rates to recover costs and to repay the Federal
investment in the generation and transmission system from which it
markets Federal power and associated energy as well as point-to-point
transmission services. If and when Network Integration Service can be
offered, the Transmission Provider will develop a suitable service
agreement form which will be constituted as follows:
1. An initial document with signatures of the Parties (Part A),
similar to the initial document form suggested in Attachment A of the
Pro Forma Tariff published as Appendix B of FERC Order 888-A, with
added provisions to include, but not be limited to:
a. Provisions reserving the right to change rates and contract
provisions which may be affected by statutory and regulatory
requirements imposed on the Transmission Provider, as well as changes
in losses and other operational matters which may be affected by
changing conditions for operation of the Transmission Provider's
Transmission System.
b. Requirements for conforming to the interchange standards of the
North American Electric Reliability Council and the Southwest Power
Pool.
c. Limitations on the Transmission Provider's obligations to
provide for deficiencies in Third-Party resources and to provide
redispatching services.
d. Recognition that the Transmission Provider's obligation to
construct new or upgraded facilities to provide capacity to meet the
Network Customer's loads is specifically contingent on availability of
funds from the U.S. Congress.
2. The Specifications for Network Transmission Service (Part B), in
a form similar to that of the specification document suggested in
Attachment A of the Pro Forma Tariff published as Appendix B of FERC
Order 888-A, with added provisions to include, but not be limited to:
a. Describing the service from information provided in the Network
Customer's Completed Application.
b. Reading in the separately negotiated Network Operating Agreement
(See Attachment G).
c. Detailing the charges associated with the service, including
applicable Ancillary Services and penalties for unauthorized use of the
service.
d. Methods for computing Real Power Losses and for the Transmission
Customer to provide for such losses to the Transmission Provider.
3. A separately negotiated and attached Network Operating
Agreement.
4. Transmission Provider's economic basis for determining network
service charges.
5. The General Provisions Applicable to Transmission Service (Part
C), including, but not limited to:
a. Special payment terms including provision for sending payments
to a U.S. Treasury lockbox, payment by EFT, and other applicable
procedures relating to billing and payment in addition to those
provided in the Tariff.
b. Standard provisions required by a Federal agency in its
contracts, such as availability of funds, and socioeconomic clauses.
c. Facilities issues including environmental and safety provisions
for
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entry and use, if any, of the Transmission Provider's property by
representatives of the Transmission Customer, and provisions related to
upgrade of facilities and mutual assistance of the Parties.
Attachment G
Network Operating Agreement
To be provided by the Transmission Provider at such time as the
Transmission Provider has negotiated or offered a Network Integration
Transmission Service Agreement. The terms and conditions under which
the Network Customer will be required to operate its facilities and the
technical and operational matters associated with the implementation of
Network Integration Transmission Service will be specified in a
separate Network Operating Agreement and appended to the applicable
Service Agreement.
The Network Operating Agreement may include, but not be limited to,
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
Ancillary Services
Penalties for Unauthorized Use of Transmission Provider's System
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 proposed to be
$____________.
In the event that the Transmission Provider is able to provide
Network Integration Transmission Service, the amount provided above
will be based on the annualized costs associated with operation and
maintainance of the Transmission System and the Transmission Provider's
obligation to repay the costs of its transmission facilities. Such
amount may be revised annually in accordance with other standard
procedures of the Transmission Provider.
The pro rata share of each applicant which may be granted Network
Integration Transmission Service will be determined by an algorithm
which has not yet been developed.
Attachment I
Index of Network Integration Transmission Service Customers
Customer Date of Service Agreement
This Attachment I is intentionally left blank.
Attachment J
Authorities and Obligations
Southwestern Power Administration (Southwestern) was established in
1943 pursuant to Section 5 of the Flood Control Act of 1944 (58 Stat.
887, 890; 16 U.S.C. 825s) and Pub. L. 95-456 (92 Stat. 1230; 16 U.S.C.
825s-3). Southwestern was organized as part of the Department of the
Interior, but became part of the Department of Energy pursuant to
Section 302 of the Department of Energy Organization Act (91 Stat. 578;
42 U.S.C. 7152) in 1977.
According to the Flood Control Act, Southwestern is to market
hydroelectric power and energy generated at U.S. Army Corps of
Engineers Dams in excess of project needs ``to encourage the most
widespread use thereof at the lowest possible rates to consumers
consistent with sound business principles.* * * Preference in the sale
of such power and energy shall be given to public bodies and
cooperatives.'' Further, ``only such transmission lines and related
facilities as may be necessary in order to make the power and energy
generated at such projects available in wholesale quantities for sale *
* *'' may be constructed or acquired to fulfill this mission.
Southwestern markets power and associated energy from hydroelectric
generation projects in the States of Arkansas, Missouri, Oklahoma, and
Texas to cooperative, municipal, and military customers in those states
as well as the States of Kansas and Louisiana. By statute,
Southwestern's Transmission System was constructed to enable the
integration of Southwestern's hydroelectric power resources to satisfy
Southwestern's contractual obligations to its Federal Customers, which
have allocations of Federal power. Southwestern sells transmission
service using Federally owned or controlled facilities only to the
extent that transmission capacity is available in excess of that
necessary to reliably deliver Federal power. In order to fulfill its
mission, Southwestern will reserve transmission capacity sufficient to
deliver Federal power. Accordingly, the Tariff shall apply only to the
marketing of such transmission capacity in the system of Southwestern
as is excess to the requirements of Southwestern's primary mission.
Southwestern's Federal Customers are somewhat analogous to, and its
nearest equivalent of, Native Load Customers as defined in the Tariff.
Southwestern is, by the nature of its resources and the provisions of
its power sales contracts, a partial requirements supplier only.
Southwestern uses its transmission system to integrate its resources to
reliably meet contract obligations rather than to meet loads. These
distinctions mean, among other things, that Southwestern is not obliged
to meet customer loads or to construct facilities to meet loads, and
thus has no ``utility responsibility.'' to its Federal Customers.
However, for the purposes of the Tariff, Southwestern will consider its
Federal Customers as the equivalent of Native Load Customers.
Southwestern is not a jurisdictional 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. Southwestern is a transmitting
utility subject to Section 211 of the Federal Power Act as amended by
the Energy Policy Act of 1992. Southwestern is also subject to the
reciprocity provisions of FERC Orders 888 and 888-A. The Department of
Energy has issued a Power Marketing Administration Open Access
Transmission Policy that supports the intent of the FERC Final Rule in
Order 888 on Open Access Transmission. This Open Access Transmission
Tariff is intended to provide for transmission of non-Federal power on
the unused capacity of transmission facilities under the jurisdiction
or control of Southwestern in a manner consistent with the spirit and
intent of FERC Orders 888 and 888-A.
Southwestern has prepared this Tariff to provide transmission
service comparable to that required of jurisdictional 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 Southwestern must comply with the application
procedures outlined therein. The review and approval requirements
detailed therein will apply to all requesting parties. Southwestern
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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 Southwestern's Requirements for
Interconnection, which are available upon request, and will require
that funds necessary for such construction be submitted in advance to
Southwestern, subject to Southwestern's authority to receive such
funds.
Based on a reasonable level of risk, Southwestern 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 and limitations of the hydroelectric resource caused by
changing water conditions may limit Southwestern's ability to provide
certain generation-related services, including some Ancillary Services
and any redispatching which may require the use of Federal hydro
resources.
Southwestern is committed to providing comparable open-access
transmission service to any Eligible Customer without discrimination,
as has been its practice throughout its history. However, nothing in
the Tariff shall alter, amend, or abridge the statutory and regulatory
obligations of Southwestern to market Federal Power to Federal
Customers and to repay the Federal investment in the projects and
facilities from which Southwestern markets power and energy.
Southwestern will provide Firm and Non-Firm Point-to-Point
Transmission Service and, if practicable, Network Integration
Transmission Service, consistent with the Tariff. The specific terms
and conditions for providing transmission service to an Eligible
Customer will be set forth in a Service Agreement.
[FR Doc. 97-25333 Filed 9-24-97; 8:45 am]
BILLING CODE 6450-01-P