[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Notices]
[Pages 50572-50606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25332]


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DEPARTMENT OF ENERGY

Western Area Power Administration


Open Access Transmission Service Tariff

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of proposed tariff.

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SUMMARY: The Western Area Power Administration (Western) is proposing 
to adopt this Open Access Transmission Service Tariff (Tariff) in order 
to be consistent with the Federal Energy Regulatory Commission (FERC) 
Orders 888 and 888-A to the extent practicable and consistent with laws 
applicable to Western's activities.

DATES: The comment period on the proposed Tariff will begin with the 
publication of this notice in the Federal Register and will end October 
27, 1997. To be assured of consideration, all written comments must be 
received by the end of the comment period. Western will hold a combined 
public information and public comment forum on the proposed Tariff 
beginning at 1 p.m., October 7, 1997.

ADDRESSES: The combined public information and public comment forum 
will be held at the Stapleton Plaza Hotel, 3333 Quebec Street, Denver, 
Colorado.
    All written comments regarding this proposed Tariff should be 
directed to the following address: Mr. Robert C. Fullerton, A0600, 
Corporate Communications, Western Area Power Administration, 1627 Cole 
Boulevard, P.O. Box 3402, Golden, CO 80401-0098, Electronic Mail: 
[email protected] Facsimile: (303) 275-1290.

FOR FURTHER INFORMATION CONTACT:

Mr. Robert J. Harris, Power Marketing Manager, Upper Great Plains 
Region, Western Area Power Administration, P.O. Box 35800, Billings, MT 
59107-5800, (406) 247-7394

[[Page 50573]]

Mr. Dave Sabo, CRSP Manager, CRSP Customer Service Center, Western Area 
Power Administration, P.O. Box 11606, Salt Lake City, UT 84147-0606, 
(801) 524-5493
Mr. Anthony H. Montoya, Power Marketing Manager, Desert Southwest 
Region, Western Area Power Administration, P.O. Box 6457, Phoenix, AZ 
85005-6457, (602) 352-2789
Mr. James D. Keselburg, Power Marketing Manager, Rocky Mountain Region, 
Western Area Power Administration, P.O. Box 3700, Loveland, CO 80539-
3003, (970) 490-7370
Ms. Zola Jackson, Power Marketing Manager, Sierra Nevada Region, 
Western Area Power Administration, 114 Parkshore Drive, Folsom, CA 
95630-4710, (916) 353-4421.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Procedures
II. Background
III. Issues Raised During the Development of this Proposed Tariff
IV. Summary of Changes from the FERC Pro Forma Tariff
V. Coordination with Adoption of Open Access Transmission Rates

I. Procedures

    After all public comments have been considered, Western will 
prepare a final Tariff and publish it in the Federal Register. Western 
will submit the final Tariff to FERC under a nonjurisdictional docket 
and will request a declaratory order that the Tariff meets FERC 
comparability standards as set forth in FERC Orders 888 and 888-A. 
Western will make necessary changes in response to the FERC declaratory 
order and further comments and will then publish the revised final 
Tariff in the Federal Register.

II. Background

    Western was established pursuant to Section 302 of the Department 
of Energy (DOE) Organization Act, Public Law 95-91, dated August 4, 
1977. Western is generally a partial requirements power supplier that 
markets and transmits Federal electric power in 15 central and western 
States encompassing a geographic area of 3.38 million-square-kilometers 
(1.3 million-square-miles). Western has four Regional Offices and one 
Customer Service Center which market and transmit power generated by 
various Federal projects. Nothing in the proposed Tariff is intended to 
alter, amend, or abridge the statutory obligations of Western to market 
Federal power and to repay the Federal investment in those Federal 
projects.
    FERC issued a Notice of Proposed Rulemaking (NOPR) for Open Access 
Transmission Service, published at 60 FR 17662, on April 7, 1995. On 
October 4, 1995, the Secretary of the Department of Energy (DOE) 
adopted a Power Marketing Administration Open Access Transmission 
Policy which stated that DOE supported the spirit and intent of the 
NOPR and directed the Power Marketing Administrations to prepare 
tariffs which would conform to the principles set forth in the FERC's 
final rule. FERC issued its final rule, Order 888, published at 61 FR 
21540 on May 10, 1996, and followed with Order 888-A, published at 62 
FR 12273, on March 14, 1997.
    In early 1996, Western began developing a Tariff Equivalent Package 
(TEP) to comply with the Secretary's directive. A draft TEP, which was 
designed as a Western-wide document that would contain Region-specific 
rates and charges, was completed in July 1996 and sent to Western's 
electric service customers, transmission-service customers, and other 
interested parties for review and comment. Western accepted comments 
through November 1996.
    After evaluating comments, Western modified its original concept of 
preparing a Western-wide TEP and began developing Regional Open Access 
Transmission Service Guidelines (Regional Guidelines). These Regional 
Guidelines contained service agreements consistent with the specific 
conditions applicable to each Region. The resulting documents were sent 
to electric service customers, transmission customers, and other 
interested parties for review and comment in April 1997. The review 
period for those documents ended in early June 1997. To date, customer 
and interested party participation has been conducted informally.
    Western will submit a single Tariff document to FERC under a 
nonjurisdictional docket and request a declaratory order from FERC that 
the Tariff meets the FERC comparability standards as set forth in FERC 
Orders 888 and 888-A. Consistent with a single FERC filing, Western 
decided to develop and file this single Tariff with appended schedules 
and attachments. Western's Tariff includes Attachment J, Provisions 
Specific to the Transmission Provider, and Attachment K, Authorities 
and Obligations, which are specific to Western and are not found in 
FERC Order 888-A, Exhibit B, Pro Forma Tariff.

III. Issues Raised During the Development of This Proposed Tariff

    Participants in the informal review process raised numerous issues 
about both versions of the draft documents. The following discussion 
highlights the more significant issues and Western's responses as 
incorporated into this proposed Tariff.
    A. Issue: There is concern that some of Western's Regional Offices 
may not offer Network Integration Transmission Service, hereafter 
called network service, at this time. Some think that not providing 
network service would probably mean that the Tariff would be of little 
value to all existing transmission customers. They think this would 
raise significant comparability issues since the service Western 
provides itself is network service.
    Response: In most cases, the service Western provides to its firm 
power customers is not exactly network or point-to-point service. 
Western will offer network service subject to available transfer 
capability determined considering operating constraints, facility 
limitations, and existing contractual obligations.
    B. Issue: Some of Western's customers have expressed concern that 
the combination of the network service provisions and the definitions 
provided in Western's Tariff result in transmission being paid for both 
as part of Western's power rates and again under Western's Tariff. The 
Tariff does not clearly describe how this would be eliminated. A 
Western customer's load and/or resources should be reduced to account 
for Western's power contract commitment to the customer. Similarly, the 
definition of Network Customer should include the possibility that a 
Network Customer may also be a Federal customer as defined in 
Attachment K.
    Response: FERC recognized that existing power and transmission 
arrangements represent a transitional problem as customers begin to 
take service under the Pro Forma Tariff. FERC did not intend, nor does 
Western, for a transmission provider to receive two payments for 
providing service to the same portion of a transmission customer's 
load. The current definition of Network Customer does not exclude the 
possibility that a Network Customer may also be a Federal customer.
    C. Issue: Some of Western's customers encouraged Western to reserve 
its transmission capability to serve future load growth needs of its 
customers, including direct-service customers. Some of Western's firm 
power customers also requested that Western

[[Page 50574]]

identify its allocations to customers as Native Load in the Tariff.
    Response: Western's customers with point-to-point transmission 
service may request increased reservations of point-to-point 
transmission to accommodate specified amounts of anticipated load 
growth of the customer. Where Western is able to provide network 
service, Western intends to meet anticipated load growth; however, 
Western's ability to construct additional transmission facilities to 
accommodate Network Customer load growth may be limited by 
appropriations or advance customer funding. Western will adhere to the 
transmission procedures set forth in its final Tariff for all requests 
for transmission service. Western has defined firm power and project 
use customers as Federal customers in Attachment K to the Tariff and 
will treat them in a manner analogous to the treatment of Native Load 
Customers of public utilities.
    D. Issue: Why does Western require advancement of funds?
    Response: Under present legislation, Western cannot use 
appropriated funds to do work for others and is prohibited from 
entering into contracts that obligate it to spend funds it does not 
have.
    E. Issue: Western should be proposing service only over Federal 
facilities. Western should not allow stranded cost recovery for non-
Federal facilities.
    Response: Each Western Regional Office will design rates to include 
the facilities used to provide transmission service under the Tariff. 
The transmission system description may be modified in the Tariff to 
correspond with results of some rate making processes. The terms of the 
Tariff will allow stranded cost recovery when appropriate and 
consistent with applicable Federal law.
    F. Issue: Why cannot Western provide service without a contract?
    Response: Western believes that the Pro Forma language, as modified 
in Western's Tariff, provides adequate protection and is willing to 
provide service without an executed Service Agreement in accordance 
with the terms of sections 1.45, 15.3 and 29.1. These sections require 
the Transmission customer to agree to abide by the Tariff terms and the 
existing transmission rates. The Transmission Customer may also request 
resolution under the provisions of Section 12, Dispute Resolution, of 
the Tariff.
    G. Issue: What process will Western use for future changes to the 
Tariff?
    Response: Western is providing notice of this proposal and an 
opportunity to comment. The proposal may then be modified after 
considering the comments received. Western will submit the final Tariff 
to FERC under a nonjurisdictional docket and request a declaratory 
order from FERC that the final Tariff meets FERC comparability 
standards as set forth in FERC Orders 888 and 888-A. Interested parties 
will have an opportunity to comment on the Tariff by following 
appropriate procedures to intervene with FERC. Western will make 
necessary changes in response to the FERC declaratory order and further 
comments and will then publish the final revised Tariff in the Federal 
Register.
    H. Issue: Some of Western's customers believe that Western has a 
statutory obligation to deliver power to its firm power customers and 
therefore, should not they have a superior right? How will Western 
address ``comparability'' issues?
    Response: Service to be provided under the Tariff will not conflict 
with any of Western's statutory obligations. There will be no need to 
give Western's Federal customers a superior right to transmission since 
adequate capacity will be reserved for the long-term delivery of the 
Federal power through Western's process in determining its Available 
Transfer Capability (ATC), which requires consideration of various 
hydrological conditions and also considers the possible integration of 
thermal or other generation sources. If there is additional capacity 
above Western's needs for use by others, Western will make that 
capacity available under the Tariff. This will ensure adequate long-
term transmission capacity for Federal purposes as well as allowing 
Western the ability to provide comparable service to others.
    I. Issue: Does Western intend that an entity seeking transmission 
service across the entire Western system would need to have a service 
agreement with each Western Regional Office and pay individual rates 
for use of each office's system, leading to a pancaking of rates?
    Response: More than one service agreement may be needed if an 
entity wants service across the transmission facilities of more than 
one project. Although a Regional Office may have responsibility for 
more than one Project Transmission System, each Project has its own 
separate transmission system and its own repayment obligation for that 
specific system.

IV. Summary of Changes From the FERC Pro Forma Tariff

    Western's proposed Tariff has 11 differences from the Pro Forma 
Tariff that can be grouped into four major categories: Preservation of 
Obligations, FERC Jurisdictional Issues, Financial Considerations, and 
Legal Issues.

A. Preservation of Obligations

i. Transmission Provider and Transmission System
    Western operates, manages, and has repayment responsibilities for 
several independent transmission systems. Each system is managed as an 
independent financial entity with discrete repayment responsibilities 
under Federal statutes authorizing the individual transmission systems. 
A Service Agreement for use of one system's facilities and payment of 
one system's rate may not permit a transmission customer to use the 
facilities of another system. There is no single Western-wide 
transmission system or transmission rate. Each system is described in 
Attachment K (Authorities and Obligations) to the proposed Tariff. The 
definitions of Transmission Provider in Section 1.46 and Transmission 
System in Section 1.49 are modified to recognize the independent nature 
of the transmission facilities.
ii. Losses
    Sections 15.7 and 28.5 of the Pro Forma Tariff are modified to 
allow the applicable transmission losses percentages to be included in 
the Region-specific Service Agreements. Western's Regional Offices 
frequently modify transmission loss factors based on actual system 
losses. Including losses in the Service Agreement provides a more 
efficient means of modifying losses than modifying the Tariff. 
Additionally, since Western has developed a Western-wide Tariff 
applicable to all Regional Offices, including losses in the Service 
Agreements is more appropriate.
iii. Federal Customers
    Western markets generation to customers that are entitled by law to 
receive preference in the sale of Federal power, as opposed to 
jurisdictional public utilities that serve load requirements in a 
geographical area. Western will treat preference customers in a manner 
analogous to Native Load Customers of public utilities as defined in 
the Pro Forma Tariff. Attachment K defines these Federal Customers.
iv. Ancillary Services
    Section 3 of the proposed Tariff is modified to include the option 
for Western to purchase Ancillary Services and pass through such costs 
to the Transmission Customer. Western's hydroelectric power facilities 
have limited capability to provide some Ancillary Services, due to 
variable

[[Page 50575]]

hydrological conditions and environmental and operational constraints. 
The existing long-term hydrological capability is allocated and under 
contract to Federal Customers in accordance with the preference 
provisions of Federal law.

B. FERC Jurisdictional Issues

    Since Western is not a jurisdictional public utility, the Tariff 
does not include reference to FERC approval of rates or service 
agreements. Western does not file its rates or contracts under Section 
205 and Section 206 of the Federal Power Act. Western's rates are 
developed pursuant to Federal law, under public information and comment 
procedures, that specify FERC's role in reviewing Power Marketing 
Administration rates. Appropriate modifications reflecting Western's 
rate setting process were made to Sections 1.10, 2.2, 9, 12.1, 13.3, 
14.3, 20.3, 26, 27, 34, 34.5.
    Western does not file executed service agreements with FERC or seek 
FERC approval to terminate service. Appropriate modifications are made 
to Sections 1.45, 7.3, 13.4, 14.4, 15.3, 17.6, 19.3, 19.4, 29.1, 29.5, 
32.3, and 32.4 to reflect Western's status as a nonjurisdictional 
utility.

C. Financial Considerations

i. Deposits for Transmission Service and Interest
    Western's current financial system and procedures make collecting 
and refunding deposits unduly burdensome. Western has replaced 
provisions for collecting deposits with Completed Applications and 
returning such deposits with interest under certain circumstances with 
language that allows Western to assess a nondiscriminatory, non-
refundable application processing fee for all Transmission Service 
requests. The processing fee reflects an average of staff wages and 
benefits multiplied by the average time it takes to analyze and respond 
to requests for service. FERC has found in other nonjurisdictional 
tariffs that such an approach represents an administratively simple 
alternative to the Pro Forma language. Also, Western will not pay 
interest on deposits for studies or construction. Although Western may, 
by contract, pay interest, Western cannot earn interest on funds 
deposited into the U.S. Treasury. Western has also investigated escrow 
accounts at commercial financial institutions and found that 
administrative costs generally exceeded interest payments. Paying 
interest on deposits would result in other ratepayers funding this 
expense. Western does not believe this is an equitable method and will 
not pay interest. Appropriate modifications are made to Sections 1.5, 
17.3, 17.4, 17.6, 19.1, 19.4, 20.3, 22.2, 29.2, 32.1, 32.2, and 32.4.
ii. Advance Payment
    There are several sections in the Pro Forma Tariff that require the 
Transmission Provider to perform activities with reimbursement by the 
Transmission Customer. Except for certain activities with other Federal 
agencies, Western normally requires advance of funds to perform work 
rather than receiving a reimbursement. Western is funded through 
Congressional appropriations. The Anti-Deficiency Act and other 
appropriations laws generally prohibit Federal agencies from expending 
funds without having adequate funds in the Treasury and from expending 
appropriations for purposes other than those for which Congress 
appropriated the funds. Modifications are made to Sections 13.5, 15.4, 
19.1, 19.2, 19.4, 19.8, 20.3, 23.2, 28.2, 31.5, 32.1, and 32.4.
iii. Net Billing and Bill Crediting
    Western's proposed Tariff uses the Pro Forma Tariff language in 
Section 7 (Billing and Payment). In addition, two provisions in 
Attachment J provide for Net Billing and Bill Crediting. Net Billing 
and Bill Crediting are two alternative financing mechanisms that 
Western has a long-standing history of using. The Net Billing language 
provides that charges for generation will not be offset with 
transmission charges without mutual agreement. To be as consistent as 
possible with the Pro Forma Tariff language, Western included these 
Western-specific provisions in Attachment J.

D. Legal Issues

    Western has adopted the Force Majeure language of the Pro Forma 
Tariff. Western has added language assuring that both parties to a 
contract will provide each other with written notice of any Force 
Majeure and exercise due diligence in resolving the problem. Western 
used the Pro Forma Tariff language for Indemnification with the 
addition of a sentence to reflect the fact that Western's liability is 
limited under Federal law and is determined in accordance with the 
Federal Tort Claims Act. Appropriate modifications are made to Section 
10.
i. Dispute Resolution
    Western modified the dispute resolution provisions to recognize the 
limits to Western's statutory and regulatory authority to submit 
disputes to arbitration consistent with the Administrative Dispute 
Resolution Act. Appropriate modifications are made to Section 12.
ii. Western-Specific Provisions
    In Attachment J to the Tariff, Western incorporated several 
provisions specific to Western, as a Federal agency. Section 1, Change 
of Rates, provides for Western to change rates under the Schedules in 
accordance with appropriate rate adjustment procedures and other 
applicable Federal laws. This provision also provides an option for 
transmission customers to terminate service within 90 days after the 
effective date of a rate change. This language is necessary because 
Western does not file its rate adjustments with FERC under the Federal 
Power Act like jurisdictional public utilities. FERC's review of 
Western's rates is provided under a different body of Federal law.
    Section 2, Contingent Upon Appropriations, is required by Federal 
law to be included in Federal contracts that will extend beyond the 
current fiscal year. Section 3, Covenant Against Contingent Fees; 
Section 4, Contract Work Hours and Safety Standards; Section 5, Equal 
Opportunity Employment Practices; and Section 6, Use of Convict Labor, 
are contract sections that are required by Federal law to be included 
in all Federal contracts.
    Section 7, Independent System Operator (ISO), recognizes that 
Western is involved with the development of several independent system 
operator (ISO) organizations and that the final Tariff may need 
modifications as a result of a Western Regional Office joining an ISO.
    Section 8 provides that the final Tariff does not grant any rights 
to any Third Parties who are not a party to the Service Agreement. 
Section 9, Entire Agreement, provides that the Service Agreement and 
Tariff are the entire understanding between Western and the 
Transmission Customer. Section 10, Power Supply Obligations, provides 
that Western is not obligated to supply capacity and energy from 
Federal generation sources during Interruptions or Curtailments other 
than through the provisions of Operating Reserve Service and emergency 
power. Generally, Federal generation is completely allocated and under 
contract on a long-term basis to customers entitled to preference under 
Federal law and may not be available for support of Transmission 
Service.
    Section 11, Federal Law, provides that the performance under the 
Tariff and Service Agreement shall be governed by

[[Page 50576]]

applicable Federal law. This avoids disputes concerning state law and 
Federal sovereignty. There may be other sections of the Tariff where 
there may be potential conflicts between laws under which Western must 
operate and FERC policy, such as Sections 27 and 31.2. Section 12, 
Continuing Obligations, provides that obligations to make payments 
survive termination of the Service Agreement until satisfied. Section 
13, Net Billing, and Section 14, Bill Crediting, are discussed above.

V. Coordination With Adoption of Open Access Transmission Rates

    Each of Western's Regional Offices is at a different point in the 
process of developing Open Access Transmission Rates. DOE approval of 
Western's rates is addressed in DOE Delegation Order No. 0204-108. 
Western's procedures for public involvement for rate procedures are 
covered in 10 CFR Part 903. Filing requirements and procedures for FERC 
review of Power Marketing Administration rates are detailed in 18 CFR 
Part 300. Until the Regional Offices complete the processes of placing 
long-term rates in effect for the services to be provided under the 
open-access tariff, they will use existing long-term rates when 
applicable. Short-term rates may be placed in effect by Western's 
Administrator and used when no rates exist for such services. Once the 
long-term rates are in effect, they will supersede the short-term 
rates.
    The Sierra Nevada Region's (SNR) new rates for ancillary services 
and transmission are proposed to become effective October 1, 1997, and 
to be effective for a 5-year period ending September 30, 2002. The 
proposed rate adjustment was initiated on May 5, 1996, and four 
informal customer workshops were held. A Federal Register notice was 
published on March 4, 1997 (62 FR 9763), officially announcing the 
proposed rates, initiating the public consultation and comment period, 
and announcing the public information and public comment forums. The 
Federal Register notice was sent to all Central Valley Project 
preference customers and interested parties, and a public information 
and a public comment forum were held.
    The Colorado River Storage Project Customer Service Center (CRSP 
CSC) is currently conducting a public process to develop transmission 
and ancillary service rates consistent with FERC Orders 888 and 888-A 
to be used with its Tariff. The public comment period will conclude 
September 23, 1997. The proposed effective date of the rates will be 
April 1, 1998.
    The Desert Southwest Region will begin a formal public involvement 
process in September 1997 to develop transmission and ancillary service 
rates consistent with FERC Orders 888 and 888-A to be used with the 
Tariff. The proposed effective date of the rates will be April 1, 1998.
    The Upper Great Plains Region (UGPR) has implemented short-term 
Open Access Transmission Rates approved by Western's Administrator. 
These transmission rates and ancillary service rates became effective 
December 20, 1996, and will expire December 19, 1997. On March 28, 
1997, by the mailing of an Advance Announcement of the transmission 
rate adjustment for the Pick-Sloan Missouri Basin Program, Eastern 
Division, a public process was initiated to establish long-term Open 
Access Transmission Rates for the UGPR. UGPR has received comments from 
that announcement and published its proposal in September 1997. The 
proposed effective date is February 1, 1998.
    The Rocky Mountain Region (RMR) will begin a formal public 
involvement process in September 1997 to develop transmission and 
ancillary service rates consistent with FERC Orders 888 and 888-A to be 
used with the Tariff. The proposed effective date of the rates will be 
April 1, 1998.
    Subsequent changes to Regional Office Open Access Transmission 
rates will be completed on a project-by-project basis using the public 
involvement and FERC review processes outlined above.

Review Under Executive Order 12866

    Western has an exemption from centralized regulatory review under 
Executive Order 12866; accordingly, no clearance of this notice by the 
Office of Management and Budget (OMB) is required.

Regulatory Flexibility Analysis

    Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601, 
et seq.), each agency, when required by 5 U.S.C. 553 to publish a 
proposed rule, is further required to prepare and make available for 
public comment an initial regulatory flexibility analysis to describe 
the impact of the proposed rule on small entities. The Acting 
Administrator for Western certifies that Western's providing open 
transmission access would not cause an adverse economic impact on a 
substantial number of such entities. Since the proposed open-access 
tariff is of limited applicability, no flexibility analysis is 
required.

Review Under the Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980, 44 U.S.C. 
3501-3520, Western has received approval from OMB for the collection of 
information in this rule under OMB control number 1910-0100.

Review Under the National Environmental Policy Act

    Western will comply with the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), the Council on Environmental Quality 
Regulations (40 CFR Parts 1500-1508), and the DOE NEPA Implementing 
Procedures (10 CFR Part 1021) prior to adopting the Tariff.
    AVAILABILITY OF INFORMATION: A redline/strikeout comparison of 
Western's proposed Tariff to the FERC Pro Forma will be available from 
the informational contacts listed previously or on the Internet at 
http://www.wapa.gov.

    Dated: September 17, 1997.
Michael S. Hacskaylo,
Acting Administrator.

Table of Contents

Part I. Common Service Provisions

1  Definitions
    1.1  Ancillary Services
    1.2  Annual Transmission Costs
    1.3  Application
    1.4  Commission
    1.5  Completed Application
    1.6  Control Area
    1.7  Curtailment
    1.8  Delivering Party
    1.9  Designated Agent
    1.10  Direct Assignment Facilities
    1.11  Eligible Customer
    1.12  Facilities Study
    1.13  Firm Point-To-Point Transmission Service
    1.14  Good Utility Practice
    1.15  Interruption
    1.16  Load Ratio Share
    1.17  Load Shedding
    1.18  Long-Term Firm Point-To-Point Transmission Service
    1.19  Native Load Customers
    1.20  Network Customer
    1.21  Network Integration Transmission Service
    1.22  Network Load
    1.23  Network Operating Agreement
    1.24  Network Operating Committee
    1.25  Network Resource
    1.26  Network Upgrades
    1.27  Non-Firm Point-To-Point Transmission Service
    1.28  Open Access Same-Time Information System
    1.29  Part I
    1.30  Part II
    1.31  Part III
    1.32  Parties
    1.33  Point(s) of Delivery
    1.34  Point(s) of Receipt

[[Page 50577]]

    1.35  Point-To-Point Transmission Service
    1.36  Power Purchaser
    1.37  Receiving Party
    1.38  Regional Transmission Group
    1.39  Reserved Capacity
    1.40  Service Agreement
    1.41  Service Commencement Date
    1.42  Short-Term Firm Point-To-Point Transmission Service
    1.43  System Impact Study
    1.44  Third-Party Sale
    1.45  Transmission Customer
    1.46  Transmission Provider
    1.47  Transmission Provider's Monthly Transmission System Peak
    1.48  Transmission Service
    1.49  Transmission System
2  Initial Allocation and Renewal Procedures
    2.1  Initial Allocation of Available Transmission Capability
    2.2  Reservation Priority For Existing Firm Service Customers
3  Ancillary Services
    3.1  Scheduling, System Control and Dispatch Service
    3.2  Reactive Supply and Voltage Control from Generation Sources 
Service
    3.3  Regulation and Frequency Response Service
    3.4  Energy Imbalance Service
    3.5  Operating Reserve--Spinning Reserve Service
    3.6  Operating Reserve--Supplemental Reserve Service
4  Open Access Same-Time Information System (OASIS)
5  Local Furnishing Bonds
    5.1  Transmission Providers That Own Facilities Financed by 
Local Furnishing Bonds
    5.2  Alternative Procedures for Requesting Transmission Service
6  Reciprocity
7  Billing and Payment
    7.1  Billing Procedures
    7.2  Interest on Unpaid Balances
    7.3  Customer Default
8  Accounting for the Transmission Provider's Use of the Tariff
    8.1  Transmission Revenues
    8.2  Study Costs and Revenues
9  Regulatory Filings
10  Force Majeure and Indemnification
    10.1  Force Majeure
    10.2  Indemnification
11  Creditworthiness
12  Dispute Resolution Procedures
    12.1  Internal Dispute Resolution Procedures
    12.2  Disputes
    12.3  Rights Under The Federal Power Act

Part II. Point-To-Point Transmission Service

Preamble
13  Nature of Firm Point-To-Point Transmission Service
    13.1  Term
    13.2  Reservation Priority
    13.3  Use of Firm Transmission Service by the Transmission 
Provider
    13.4  Service Agreements
    13.5  Transmission Customer Obligations for Facility Additions 
or Redispatch Costs
    13.6  Curtailment of Firm Transmission Service
    13.7  Classification of Firm Transmission Service
    13.8  Scheduling of Firm Point-To-Point Transmission Service
14  Nature of Non-Firm Point-To-Point Transmission Service
    14.1  Term
    14.2  Reservation Priority
    14.3  Use of Non-Firm Point-To-Point Transmission Service by the 
Transmission Provider
    14.4  Service Agreements
    14.5  Classification of Non-Firm Point-To-Point Transmission 
Service
    14.6  Scheduling of Non-Firm Point-To-Point Transmission Service
    14.7  Curtailment or Interruption of Service
15  Service Availability
    15.1  General Conditions
    15.2  Determination of Available Transmission Capability
    15.3  Initiating Service in the Absence of an Executed Service 
Agreement
    15.4  Obligation to Provide Transmission Service that Requires 
Expansion or Modification of the Transmission System
    15.5  Deferral of Service
    15.6  Other Transmission Service Schedules
    15.7  Real Power Losses
16  Transmission Customer Responsibilities
    16.1  Conditions Required of Transmission Customers
    16.2  Transmission Customer Responsibility for Third-Party 
Arrangements
17  Procedures for Arranging Firm Point-To-Point Transmission 
Service
    17.1  Application
    17.2  Completed Application
    17.3  Processing Fee
    17.4  Notice of Deficient Application
    17.5  Response to a Completed Application
    17.6  Execution of a Service Agreement
    17.7  Extensions for Commencement of Service
18  Procedures for Arranging Non-Firm Point-To-Point Transmission 
Service
    18.1  Application
    18.2  Completed Application
    18.3  Reservation of Non-Firm Point-To-Point Transmission 
Service
    18.4  Determination of Available Transmission Capability
19  Additional Study Procedures For Firm Point-To-Point Transmission 
Service Requests
    19.1  Notice of Need for System Impact Study
    19.2  System Impact Study Agreement and Compensation
    19.3  System Impact Study Procedures
    19.4  Facilities Study Procedures
    19.5  Facilities Study Modifications
    19.6  Due Diligence in Completing New Facilities
    19.7  Partial Interim Service
    19.8  Expedited Procedures for New Facilities
20  Procedures if The Transmission Provider is Unable to Complete 
New Transmission Facilities for Firm Point-To-Point Transmission 
Service
    20.1  Delays in Construction of New Facilities
    20.2  Alternatives to the Original Facility Additions
    20.3  Refund Obligation for Unfinished Facility Additions
21  Provisions Relating to Transmission Construction and Services on 
the Systems of Other Utilities
    21.1  Responsibility for Third-Party System Additions
    21.2  Coordination of Third-Party System Additions
22  Changes in Service Specifications
    22.1  Modifications On a Non-Firm Basis
    22.2  Modifications On a Firm Basis
23  Sale or Assignment of Transmission Service
    23.1  Procedures for Assignment or Transfer of Service
    23.2  Limitations on Assignment or Transfer of Service
    23.3  Information on Assignment or Transfer of Service
24  Metering and Power Factor Correction at Receipt and Delivery 
Point(s)
    24.1  Transmission Customer Obligations
    24.2  Transmission Provider Access to Metering Data
    24.3  Power Factor
25  Compensation for Transmission Service
26  Stranded Cost Recovery
27  Compensation for New Facilities and Redispatch Costs

Part III. Network Integration Transmission Service

Preamble

28  Nature of Network Integration Transmission Service
    28.1  Scope of Service
    28.2  Transmission Provider Responsibilities
    28.3  Network Integration Transmission Service
    28.4  Secondary Service
    28.5  Real Power Losses
    28.6  Restrictions on Use of Service
29  Initiating Service
    29.1  Condition Precedent for Receiving Service
    29.2  Application Procedures
    29.3  Technical Arrangements to be Completed Prior to 
Commencement of Service
    29.4  Network Customer Facilities
    29.5  This section is intentionally left blank
30  Network Resources
    30.1  Designation of Network Resources
    30.2  Designation of New Network Resources
    30.3  Termination of Network Resources
    30.4  Operation of Network Resources
    30.5  Network Customer Redispatch Obligation
    30.6  Transmission Arrangements for Network Resources Not 
Physically Interconnected With The Transmission Provider
    30.7  Limitation on Designation of Network Resources
    30.8  Use of Interface Capacity by the Network Customer
    30.9  Network Customer Owned Transmission Facilities
31  Designation of Network Load

[[Page 50578]]

    31.1  Network Load
    31.2  New Network Loads Connected With the Transmission Provider
    31.3  Network Load Not Physically Interconnected with the 
Transmission Provider
    31.4  New Interconnection Points
    31.5  Changes in Service Requests
    31.6  Annual Load and Resource Information Updates
32  Additional Study Procedures For Network Integration Transmission 
Service Requests
    32.1  Notice of Need for System Impact Study
    32.2  System Impact Study Agreement and Compensation
    32.3  System Impact Study Procedures
    32.4  Facilities Study Procedures
33  Load Shedding and Curtailments
    33.1  Procedures
    33.2  Transmission Constraints
    33.3  Cost Responsibility for Relieving Transmission Constraints
    33.4  Curtailments of Scheduled Deliveries
    33.5  Allocation of Curtailments
    33.6  Load Shedding
    33.7  System Reliability
34  Rates and Charges
    34.1  Monthly Demand Charge
    34.2  Determination of Network Customer's Monthly Network Load
    34.3  Determination of Transmission Provider's Monthly 
Transmission System Load
    34.4  Redispatch Charge
    34.5  Stranded Cost Recovery
35  Operating Arrangements
    35.1  Operation under The Network Operating Agreement
    35.2  Network Operating Agreement
    35.3  Network Operating Committee
Schedule 1
    Scheduling, System Control and Dispatch Service
Schedule 2
    Reactive Supply and Voltage Control from Generation Sources 
Service
Schedule 3
    Regulation and Frequency Response Service
Schedule 4
    Energy Imbalance Service
Schedule 5
    Operating Reserve--Spinning Reserve Service
Schedule 6
    Operating Reserve--Supplemental Reserve Service
Schedule 7
    Long-Term Firm and Short-Term Firm Point-to-Point Transmission 
Service
Schedule 8
    Non-Firm Point-to-Point Transmission Service
Attachment A
    Form of Service Agreement For Firm Point-to-Point Transmission 
Service
Attachment B
    Form of Service Agreement For Non-Firm Point-to-Point 
Transmission Service
Attachment C
    Methodology to Assess Available Transmission Capability
Attachment D
    Methodology for Completing a System Impact Study
Attachment E
    Index of Point-to-Point Transmission Service Customers
Attachment F
    Service Agreement For Network Integration Transmission Service
Attachment G
    Network Operating Agreement
Attachment H
    Annual Transmission Revenue Requirement For Network Integration 
Transmission Service
Attachment I
    Index of Network Integration Transmission Service Customers
Attachment J
    Provisions Specific to the Transmission Provider
Attachment K
    Transmission Provider Authorities and Obligations

I. Common Service Provisions

1  Definitions

1.1  Ancillary Services: Those services that are necessary to support 
the transmission of capacity and energy from resources to loads while 
maintaining reliable operation of the Transmission Provider's 
Transmission System in accordance with Good Utility Practice.
1.2  Annual Transmission Costs: The total annual cost of the 
Transmission System for purposes of Network Integration Transmission 
Service shall be the amount specified in Attachment H until amended by 
the Transmission Provider or modified by the Commission, pursuant to 
Federal Law.
1.3  Application: A request by an Eligible Customer for transmission 
service pursuant to the provisions of the Tariff.
1.4  Commission: The Federal Energy Regulatory Commission.
1.5  Completed Application: An Application that satisfies all of the 
information and other requirements of the Tariff, including any 
required application processing fee.
1.6  Control Area: An electric power system or combination of electric 
power systems to which a common automatic generation control scheme is 
applied in order to:
    (1) Match, at all times, the power output of the generators within 
the electric power system(s) and capacity and energy purchased from 
entities outside the electric power system(s), with the load within the 
electric power system(s);
    (2) Maintain scheduled interchange with other Control Areas, within 
the limits of Good Utility Practice;
    (3) Maintain the frequency of the electric power system(s) within 
reasonable limits in accordance with Good Utility Practice; and
    (4) Provide sufficient generating capacity to maintain operating 
reserves in accordance with Good Utility Practice.
1.7  Curtailment: A reduction in firm or non-firm transmission service 
in response to a transmission capacity shortage as a result of system 
reliability conditions.
1.8  Delivering Party: The entity supplying capacity and energy to be 
transmitted at Point(s) of Receipt.
1.9  Designated Agent: Any entity that performs actions or functions on 
behalf of the Transmission Provider, an Eligible Customer, or the 
Transmission Customer required under the Tariff.
1.10  Direct Assignment Facilities: Facilities or portions of 
facilities that are constructed by the Transmission Provider for the 
sole use/benefit of a particular Transmission Customer requesting 
service under the Tariff. Direct Assignment Facilities shall be 
specified in the Service Agreement that governs service to the 
Transmission Customer.
1.11  Eligible Customer: (i) Any electric utility (including the 
Transmission Provider and any power marketer), Federal power marketing 
agency, or any person generating electric energy for sale for resale is 
an Eligible Customer under the Tariff. Electric energy sold or produced 
by such entity may be electric energy produced in the United States, 
Canada or Mexico. However, with respect to transmission service that 
the Commission is prohibited from ordering by Section 212(h) of the 
Federal Power Act, such entity is eligible only if the service is 
provided pursuant to a state requirement that the Transmission Provider 
offer the unbundled transmission service, or pursuant to a voluntary 
offer of such service by the Transmission Provider. (ii) Any retail 
customer taking unbundled transmission service pursuant to a state 
requirement that the Transmission Provider offer the transmission 
service, or pursuant to a voluntary offer of such service by the 
Transmission Provider, is an Eligible Customer under the Tariff.
1.12  Facilities Study: An engineering study conducted by the 
Transmission Provider to determine the required modifications to the 
Transmission Provider's Transmission System, including the cost and 
scheduled completion date for such modifications, that will be required 
to provide the requested transmission service.

[[Page 50579]]

1.13  Firm Point-To-Point Transmission Service: Transmission Service 
under this Tariff that is reserved and/or scheduled between specified 
Points of Receipt and Delivery pursuant to Part II of this Tariff.
1.14  Good Utility Practice: Any of the practices, methods and acts 
engaged in or approved by a significant portion of the electric utility 
industry during the relevant time period, or any of the practices, 
methods and acts which, in the exercise of reasonable judgment in light 
of the facts known at the time the decision was made, could have been 
expected to accomplish the desired result at a reasonable cost 
consistent with good business practices, reliability, safety and 
expedition. Good Utility Practice is not intended to be limited to the 
optimum practice, method, or act to the exclusion of all others, but 
rather to be acceptable practices, methods, or acts generally accepted 
in the region.
1.15  Interruption: A reduction in non-firm transmission service due to 
economic reasons pursuant to Section 14.7.
1.16  Load Ratio Share: Ratio of a Transmission Customer's Network Load 
to the Transmission Provider's total load computed in accordance with 
Sections 34.2 and 34.3 of the Network Integration Transmission Service 
under Part III of the Tariff and calculated on a rolling twelve month 
basis.
1.17  Load Shedding: The systematic reduction of system demand by 
temporarily decreasing load in response to transmission system or area 
capacity shortages, system instability, or voltage control 
considerations under Part III of the Tariff.
1.18  Long-Term Firm Point-To-Point Transmission Service: Firm Point-
To-Point Transmission Service under Part II of the Tariff with a term 
of one year or more.
1.19  Native Load Customers: The wholesale and retail power customers 
of the Transmission Provider on whose behalf the Transmission Provider, 
by statute, franchise, regulatory requirement, or contract, has 
undertaken an obligation to construct and operate the Transmission 
Provider's system to meet the reliable electric needs of such 
customers.
1.20  Network Customer: An entity receiving transmission service 
pursuant to the terms of the Transmission Provider's Network 
Integration Transmission Service under Part III of the Tariff.
1.21  Network Integration Transmission Service: The transmission 
service provided under Part III of the Tariff.
1.22  Network Load: The load that a Network Customer designates for 
Network Integration Transmission Service under Part III of the Tariff. 
The Network Customer's Network Load shall include all load served by 
the output of any Network Resources designated by the Network Customer. 
A Network Customer may elect to designate less than its total load as 
Network Load but may not designate only part of the load at a discrete 
Point of Delivery. Where a Eligible Customer has elected not to 
designate a particular load at discrete points of delivery as Network 
Load, the Eligible Customer is responsible for making separate 
arrangements under Part II of the Tariff for any Point-To-Point 
Transmission Service that may be necessary for such non-designated 
load.
1.23  Network Operating Agreement: An executed agreement that contains 
the terms and conditions under which the Network Customer shall operate 
its facilities and the technical and operational matters associated 
with the implementation of Network Integration Transmission Service 
under Part III of the Tariff.
1.24  Network Operating Committee: A group made up of representatives 
from the Network Customer(s) and the Transmission Provider established 
to coordinate operating criteria and other technical considerations 
required for implementation of Network Integration Transmission Service 
under Part III of this Tariff.
1.25  Network Resource: Any designated generating resource owned, 
purchased, or leased by a Network Customer under the Network 
Integration Transmission Service Tariff. Network Resources do not 
include any resource, or any portion thereof, that is committed for 
sale to third parties or otherwise cannot be called upon to meet the 
Network Customer's Network Load on a non-interruptible basis.
1.26  Network Upgrades: Modifications or additions to transmission-
related facilities that are integrated with and support the 
Transmission Provider's overall Transmission System for the general 
benefit of all users of such Transmission System.
1.27  Non-Firm Point-To-Point Transmission Service: Point-To-Point 
Transmission Service under the Tariff that is reserved and scheduled on 
an as-available basis and is subject to Curtailment or Interruption as 
set forth in Section 14.7 under Part II of the Tariff. Non-Firm Point-
To-Point Transmission Service is available on a stand-alone basis for 
periods ranging from one hour to one month.
1.28  Open Access Same-Time Information System (OASIS): The information 
system and standards of conduct contained in Part 37 of the 
Commission's regulations and all additional requirements implemented by 
subsequent Commission orders dealing with OASIS.
1.29  Part I: Tariff Definitions and Common Service Provisions 
contained in Sections 2 through 12.
1.30  Part II: Tariff Sections 13 through 27 pertaining to Point-To-
Point Transmission Service in conjunction with the applicable Common 
Service Provisions of Part I and appropriate Schedules and Attachments.
1.31  Part III: Tariff Sections 28 through 35 pertaining to Network 
Integration Transmission Service in conjunction with the applicable 
Common Service Provisions of Part I and appropriate Schedules and 
Attachments.
1.32  Parties: The Transmission Provider and the Transmission Customer 
receiving service under the Tariff.
1.33  Point(s) of Delivery: Point(s) on the Transmission Provider's 
Transmission System where capacity and energy transmitted by the 
Transmission Provider will be made available to the Receiving Party 
under Part II of the Tariff. The Point(s) of Delivery shall be 
specified in the Service Agreement for Long-Term Firm Point-to-Point 
Transmission Service.
1.34  Point(s) of Receipt: Point(s) of interconnection on the 
Transmission Provider's Transmission System where capacity and energy 
will be made available to the Transmission Provider by the Delivering 
Party under Part II of the Tariff. The Point(s) of Receipt shall be 
specified in the Service Agreement for Long-Term Firm Point-to-Point 
Transmission Service.
1.35  Point-To-Point Transmission Service: The reservation and 
transmission of capacity and energy on either a firm or non-firm basis 
from the Point(s) of Receipt to the Point(s) of Delivery under Part II 
of the Tariff.
1.36  Power Purchaser: The entity that is purchasing the capacity and 
energy to be transmitted under the Tariff.
1.37  Receiving Party: The entity receiving the capacity and energy 
transmitted by the Transmission Provider to Point(s) of Delivery.

[[Page 50580]]

1.38  Regional Transmission Group (RTG): A voluntary organization of 
transmission owners, transmission users and other entities approved by 
the Commission to efficiently coordinate transmission planning (and 
expansion), operation and use on a regional (and interregional) basis.
1.39  Reserved Capacity: The maximum amount of capacity and energy that 
the Transmission Provider agrees to transmit for the Transmission 
Customer over the Transmission Provider's Transmission System between 
the Point(s) of Receipt and the Point(s) of Delivery under Part II of 
the Tariff. Reserved Capacity shall be expressed in terms of whole 
megawatts on a sixty (60) minute interval (commencing on the clock 
hour) basis.
1.40  Service Agreement: The initial agreement and any amendments or 
supplements thereto entered into by the Transmission Customer and the 
Transmission Provider for service under the Tariff.
1.41  Service Commencement Date: The date the Transmission Provider 
begins to provide service pursuant to the terms of an executed Service 
Agreement, or the date the Transmission Provider begins to provide 
service in accordance with Section 15.3 or Section 29.1 under the 
Tariff.
1.42  Short-Term Firm Point-To-Point Transmission Service: Firm Point-
To-Point Transmission Service under Part II of the Tariff with a term 
of less than one year.
1.43  System Impact Study: An assessment by the Transmission Provider 
of (i) the adequacy of the Transmission System to accommodate a request 
for either Firm Point-To-Point Transmission Service or Network 
Integration Transmission Service and (ii) whether any additional costs 
may be incurred in order to provide transmission service.
1.44  Third-Party Sale: Any sale for resale in interstate commerce to a 
Power Purchaser that is not designated as part of Network Load under 
the Network Integration Transmission Service.
1.45  Transmission Customer: Any Eligible Customer (or its Designated 
Agent) that (i) executes a Service Agreement, or (ii) requests in 
writing that the Transmission Provider provide transmission service 
without a Service Agreement, pursuant to section 15.3 of the Tariff. 
This term is used in the Part I Common Service Provisions to include 
customers receiving transmission service under Part II and Part III of 
this Tariff.
1.46  Transmission Provider: The Regional Office of the Western Area 
Power Administration (Western) which owns, controls, or operates the 
facilities used for the transmission of electric energy in interstate 
commerce and provides transmission service under the Tariff with which 
the Transmission Customer has contracted to provide Transmission 
Service (See Attachment K).
1.47  Transmission Provider's Monthly Transmission System Peak: The 
maximum firm usage of the Transmission Provider's Transmission System 
in a calendar month.
1.48  Transmission Service: Point-To-Point Transmission Service 
provided under Part II of the Tariff on a firm and non-firm basis.
1.49  Transmission System: The facilities owned, controlled or operated 
by the Transmission Provider that are used to provide transmission 
service under Part II and Part III of the Tariff and are defined in 
Attachment K to the Tariff.

2  Initial Allocation and Renewal Procedures

2.1  Initial Allocation of Available Transmission Capability: For 
purposes of determining whether existing capability on the Transmission 
Provider's Transmission System is adequate to accommodate a request for 
firm service under this Tariff, all Completed Applications for new firm 
transmission service received during the initial sixty (60) day period 
commencing with the effective date of the Tariff will be deemed to have 
been filed simultaneously. A lottery system conducted by an independent 
party shall be used to assign priorities for Completed Applications 
filed simultaneously. All Completed Applications for firm transmission 
service received after the initial sixty (60) day period shall be 
assigned a priority pursuant to Section 13.2.
2.2  Reservation Priority For Existing Firm Service Customers: Existing 
firm service customers (wholesale requirements and transmission-only, 
with a contract term of one-year or more), have the right to continue 
to take transmission service from the Transmission Provider when the 
contract expires, rolls over or is renewed. This transmission 
reservation priority is independent of whether the existing customer 
continues to purchase capacity and energy from the Transmission 
Provider or elects to purchase capacity and energy from another 
supplier. If at the end of the contract term, the Transmission 
Provider's Transmission System cannot accommodate all of the requests 
for transmission service, the existing firm service customer must agree 
to accept a contract term at least equal to a competing request by any 
new Eligible Customer and to pay the current rate for such service. 
This transmission reservation priority for existing firm service 
customers is an ongoing right that may be exercised at the end of all 
firm contract terms of one-year or longer.

3  Ancillary Services

    Ancillary Services are needed with transmission service to maintain 
reliability within and among the Control Areas affected by the 
transmission service. The Transmission Provider is required to provide 
(or offer to arrange with the local Control Area operator as discussed 
below), and the Transmission Customer is required to purchase, the 
following Ancillary Services (i) Scheduling, System Control and 
Dispatch, and (ii) Reactive Supply and Voltage Control from Generation 
Sources.
    The Transmission Provider is required, to the extent possible, to 
offer to provide (or offer to arrange with the local Control Area 
operator as discussed below) the following Ancillary Services only to 
the Transmission Customer serving load within the Transmission 
Provider's Control Area (i) Regulation and Frequency Response, (ii) 
Energy Imbalance, (iii) Operating Reserve--Spinning, and (iv) Operating 
Reserve--Supplemental. The Transmission Customer serving load within 
the Transmission Provider's Control Area, is required to acquire these 
Ancillary Services, whether from the Transmission Provider, from a 
third party, or by self-supply. The Transmission Customer may not 
decline the Transmission Provider's offer of Ancillary Services unless 
it demonstrates that it has acquired the Ancillary Services from 
another source. The Transmission Provider will offer to provide the 
Transmission Customer Ancillary Services only to the extent surplus 
Federal generation is available for such services. However, the 
Transmission Provider may purchase Ancillary Services from others on 
behalf of the Transmission Customer under the terms of an agreement 
separate from the Service Agreement. The costs of such purchases on 
behalf of a Transmission Customer will be passed directly through to 
that Transmission Customer. The Transmission Customer must list in its 
Application which Ancillary

[[Page 50581]]

Services it will purchase from the Transmission Provider.
    If the Transmission Provider is a utility providing transmission 
service, but is not a Control Area operator, it may be unable to 
provide some or all of the Ancillary Services. In this case, the 
Transmission Provider can fulfill its obligation to provide Ancillary 
Services by acting as the Transmission Customer's agent to secure these 
Ancillary Services from the Control Area operator. The Transmission 
Customer may elect to (i) have the Transmission Provider act as its 
agent, (ii) secure the Ancillary Services directly from the Control 
Area operator, or (iii) secure the Ancillary Services (discussed in 
Schedules 3, 4, 5, and 6) from a third party or by self-supply when 
technically feasible.
    The Transmission Provider shall specify the rate treatment and all 
related terms and conditions in the event of an unauthorized use of 
Ancillary Services by the Transmission Customer.
    The specific Ancillary Services, prices and/or compensation methods 
for each are described on the Schedules that are attached to and made a 
part of the Tariff. Three principal requirements apply to discounts for 
Ancillary Services provided by the Transmission Provider in conjunction 
with its provision of transmission service as follows: (1) Any offer of 
a discount made by the Transmission Provider must be announced to all 
Eligible Customers solely by posting on the OASIS, (2) any customer-
initiated requests for discounts (including requests for use by one's 
wholesale merchant or an affiliate's use) must occur solely by posting 
on the OASIS, and (3) once a discount is negotiated, details must be 
immediately posted on the OASIS. A discount agreed upon for an 
Ancillary Service must be offered for the same period to all Eligible 
Customers on the Transmission Provider's system. Sections 3.1 through 
3.6 below list the six Ancillary Services.

3.1  Scheduling, System Control and Dispatch Service: The rates and/or 
methodology are described in Schedule 1.
3.2  Reactive Supply and Voltage Control from Generation Sources 
Service: The rates and/or methodology are described in Schedule 2.
3.3  Regulation and Frequency Response Service: Where applicable the 
rates and/or methodology are described in Schedule 3.
3.4  Energy Imbalance Service: Where applicable the rates and/or 
methodology are described in Schedule 4.
3.5  Operating Reserve--Spinning Reserve Service: Where applicable the 
rates and/or methodology are described in Schedule 5.
3.6  Operating Reserve--Supplemental Reserve Service: Where applicable 
the rates and/or methodology are described in Schedule 6.

4  Open Access Same-Time Information System (OASIS)

    Terms and conditions regarding Open Access Same-Time Information 
System and standards of conduct are set forth in 18 CFR 37 of the 
Commission's regulations (Open Access Same-Time Information System and 
Standards of Conduct for Public Utilities). In the event available 
transmission capability as posted on the OASIS is insufficient to 
accommodate a request for firm transmission service, additional studies 
may be required as provided by this Tariff pursuant to Sections 19 and 
32.

5  Local Furnishing Bonds

5.1  Transmission Providers That Own Facilities Financed by Local 
Furnishing Bonds: This provision is applicable only to Transmission 
Providers that have financed facilities for the local furnishing of 
electric energy with tax-exempt bonds, as described in Section 142(f) 
of the Internal Revenue Code (``local furnishing bonds''). 
Notwithstanding any other provision of this Tariff, the Transmission 
Provider shall not be required to provide transmission service to any 
Eligible Customer pursuant to this Tariff if the provision of such 
transmission service would jeopardize the tax-exempt status of any 
local furnishing bond(s) used to finance the Transmission Provider's 
facilities that would be used in providing such transmission service.
5.2  Alternative Procedures for Requesting Transmission Service:
    (i) If the Transmission Provider determines that the provision of 
transmission service requested by an Eligible Customer would jeopardize 
the tax-exempt status of any local furnishing bond(s) used to finance 
its facilities that would be used in providing such transmission 
service, it shall advise the Eligible Customer within thirty (30) days 
of receipt of the Completed Application.
    (ii) If the Eligible Customer thereafter renews its request for the 
same transmission service referred to in (i) by tendering an 
application under Section 211 of the Federal Power Act, the 
Transmission Provider, within ten (10) days of receiving a copy of the 
Section 211 application, will waive its rights to a request for service 
under Section 213(a) of the Federal Power Act and to the issuance of a 
proposed order under Section 212(c) of the Federal Power Act. The 
Commission, upon receipt of the Transmission Provider's waiver of its 
rights to a request for service under Section 213(a) of the Federal 
Power Act and to the issuance of a proposed order under Section 212(c) 
of the Federal Power Act, shall issue an order under Section 211 of the 
Federal Power Act. Upon issuance of the order under Section 211 of the 
Federal Power Act, the Transmission Provider shall be required to 
provide the requested transmission service in accordance with the terms 
and conditions of this Tariff.

6  Reciprocity

    A Transmission Customer receiving transmission service under this 
Tariff agrees to provide comparable transmission service that it is 
capable of providing to the Transmission Provider on similar terms and 
conditions over facilities used for the transmission of electric energy 
owned, controlled or operated by the Transmission Customer and over 
facilities used for the transmission of electric energy owned, 
controlled or operated by the Transmission Customer's corporate 
affiliates. A Transmission Customer that is a member of a power pool or 
Regional Transmission Group also agrees to provide comparable 
transmission service to the members of such power pool and Regional 
Transmission Group on similar terms and conditions over facilities used 
for the transmission of electric energy owned, controlled or operated 
by the Transmission Customer and over facilities used for the 
transmission of electric energy owned, controlled or operated by the 
Transmission Customer's corporate affiliates.
    This reciprocity requirement applies not only to the Transmission 
Customer that obtains transmission service under the Tariff, but also 
to all parties to a transaction that involves the use of transmission 
service under the Tariff, including the power seller, buyer and any 
intermediary, such as a power marketer. This reciprocity requirement 
also applies to any Eligible Customer that owns, controls or operates 
transmission facilities that uses an intermediary, such as a power 
marketer, to request transmission service under the Tariff. If the 
Transmission Customer does not own, control or operate transmission 
facilities, it must include

[[Page 50582]]

in its Application a sworn statement of one of its duly authorized 
officers or other representatives that the purpose of its Application 
is not to assist an Eligible Customer to avoid the requirements of this 
provision.

7  Billing and Payment

7.1  Billing Procedures: Within a reasonable time after the first day 
of each month, the Transmission Provider shall submit an invoice to the 
Transmission Customer for the charges for all services furnished under 
the Tariff during the preceding month. The invoice shall be paid by the 
Transmission Customer within twenty (20) days of receipt. All payments 
shall be made in immediately available funds payable to the 
Transmission Provider, or by wire transfer to a bank named by the 
Transmission Provider.
7.2  Interest on Unpaid Balances: Interest on any unpaid amounts 
(including amounts placed in escrow) shall be calculated in accordance 
with the methodology specified for interest on refunds in the 
Commission's regulations at 18 CFR 35.19a(a)(2)(iii). Interest on 
delinquent amounts shall be calculated from the due date of the bill to 
the date of payment. When payments are made by mail, bills shall be 
considered as having been paid on the date of receipt by the 
Transmission Provider.
7.3  Customer Default: In the event the Transmission Customer fails, 
for any reason other than a billing dispute as described below, to make 
payment to the Transmission Provider on or before the due date as 
described above, and such failure of payment is not corrected within 
thirty (30) calendar days after the Transmission Provider notifies the 
Transmission Customer to cure such failure, a default by the 
Transmission Customer shall be deemed to exist. Within the same 30 
calendar days after notice of failure to make payment, the Transmission 
Customer shall have the right of appeal to the Administrator of 
Western. The Transmission Provider shall submit its recommendation to 
the Administrator for review and approval, but shall not terminate 
service until the Administrator makes a determination on the 
Transmission Customer's appeal. In the event of a billing dispute 
between the Transmission Provider and the Transmission Customer, the 
Transmission Provider will continue to provide service under the 
Service Agreement as long as the Transmission Customer (i) continues to 
make all payments not in dispute, and (ii) pays into an independent 
escrow account the portion of the invoice in dispute, pending 
resolution of such dispute. If the Transmission Customer fails to meet 
these two requirements for continuation of service, then the 
Transmission Provider may provide notice to the Transmission Customer 
of its intention to suspend service in sixty (60) days, in accordance 
with Commission policy.

8  Accounting for the Transmission Provider's Use of the Tariff

    The Transmission Provider shall record the following amounts, as 
outlined below.

8.1  Transmission Revenues: Include in a separate operating revenue 
account or subaccount the revenues it receives from Transmission 
Service when making Third-Party Sales under Part II of the Tariff.
8.2  Study Costs and Revenues: Include in a separate transmission 
operating expense account or subaccount, costs properly chargeable to 
expense that are incurred to perform any System Impact Studies or 
Facilities Studies which the Transmission Provider conducts to 
determine if it must construct new transmission facilities or upgrades 
necessary for its own uses, including making Third-Party Sales under 
the Tariff; and include in a separate operating revenue account or 
subaccount the revenues received for System Impact Studies or 
Facilities Studies performed when such amounts are separately stated 
and identified in the Transmission Customer's billing under the Tariff.

9  Regulatory Filings

    Nothing contained in the Tariff or any Service Agreement shall be 
construed as affecting in any way the ability of any Party receiving 
service under the Tariff to exercise its rights under the Federal Power 
Act and pursuant to the Commission's rules and regulations promulgated 
thereunder.

10  Force Majeure and Indemnification

10.1  Force Majeure: An event of Force Majeure means any act of God, 
labor disturbance, act of the public enemy, war, insurrection, riot, 
fire, storm or flood, explosion, breakage or accident to machinery or 
equipment, any Curtailment, order, regulation or restriction imposed by 
governmental military or lawfully established civilian authorities, or 
any other cause beyond a Party's control. A Force Majeure event does 
not include an act of negligence or intentional wrongdoing. Neither the 
Transmission Provider nor the Transmission Customer will be considered 
in default as to any obligation under this Tariff if prevented from 
fulfilling the obligation due to an event of Force Majeure. However, a 
Party whose performance under this Tariff is hindered by an event of 
Force Majeure shall make all reasonable efforts to perform its 
obligations under this Tariff. Either Party rendered unable to fulfill 
any of its obligations under the Service Agreement by reason of an 
uncontrollable force shall give prompt written notice of such fact to 
the other Party and shall exercise due diligence to remove such 
inability with all reasonable dispatch.
10.2  Indemnification: The Transmission Customer shall at all times 
indemnify, defend, and save the Transmission Provider harmless from, 
any and all damages, losses, claims, including claims and actions 
relating to injury to or death of any person or damage to property, 
demands, suits, recoveries, costs and expenses, court costs, attorney 
fees, and all other obligations by or to third parties, arising out of 
or resulting from the Transmission Provider's performance of its 
obligations under this Tariff on behalf of the Transmission Customer, 
except in cases of negligence or intentional wrongdoing by the 
Transmission Provider. The liability of the Transmission Provider shall 
be determined in accordance with the provisions of the Federal Tort 
Claims Act, as amended.

11  Creditworthiness

    For the purpose of determining the ability of the Transmission 
Customer to meet its obligations related to service hereunder, the 
Transmission Provider may require reasonable credit review procedures. 
This review shall be made in accordance with standard commercial 
practices.
    In addition, the Transmission Provider may require the Transmission 
Customer to provide and maintain in effect during the term of the 
Service Agreement, an unconditional and irrevocable letter of credit as 
security to meet its responsibilities and obligations under the Tariff, 
or an alternative form of security proposed by the Transmission 
Customer and acceptable to the Transmission Provider and consistent 
with commercial practices established by the Uniform Commercial Code 
that protects the Transmission Provider against the risk of non-
payment.

[[Page 50583]]

12  Dispute Resolution Procedures

12.1  Internal Dispute Resolution Procedures: Any dispute between a 
Transmission Customer and the Transmission Provider involving 
transmission service under the Tariff shall be referred to a designated 
senior representative of the Transmission Provider and a senior 
representative of the Transmission Customer for resolution on an 
informal basis as promptly as practicable.
12.2  Disputes: Any dispute regarding service provided under the 
Service Agreement will be resolved in a manner consistent with the 
Administrative Dispute Resolution Act, as amended, subject to statutory 
and regulatory limits on Western's authority to submit disputes to 
arbitration.
12.3  Rights Under The Federal Power Act: Nothing in this section shall 
restrict the rights of any party to file a Complaint with the 
Commission under relevant provisions of the Federal Power Act.

Part II. Point-To-Point Transmission Service

Preamble
    The Transmission Provider will provide Firm and Non-Firm Point-To-
Point Transmission Service pursuant to the applicable terms and 
conditions of this Tariff. Point-To-Point Transmission Service is for 
the receipt of capacity and energy at designated Point(s) of Receipt 
and the transmission of such capacity and energy to designated Point(s) 
of Delivery.

13  Nature of Firm Point-To-Point Transmission Service

13.1  Term: The minimum term of Firm Point-To-Point Transmission 
Service shall be one day and the maximum term shall be specified in the 
Service Agreement.
13.2  Reservation Priority: Long-Term Firm Point-To-Point Transmission 
Service shall be available on a first-come, first-served basis i.e., in 
the chronological sequence in which each Transmission Customer reserved 
service. Reservations for Short-Term Firm Point-To-Point Transmission 
Service will be conditional based upon the length of the requested 
transaction. If the Transmission System becomes oversubscribed, 
requests for longer term service may preempt requests for shorter term 
service up to the following deadlines; one day before the commencement 
of daily service, one week before the commencement of weekly service, 
and one month before the commencement of monthly service. Before the 
conditional reservation deadline, if available transmission capability 
is insufficient to satisfy all Applications, an Eligible Customer with 
a reservation for shorter term service has the right of first refusal 
to match any longer term reservation before losing its reservation 
priority. A longer term competing request for Short-Term Firm Point-To-
Point Transmission Service will be granted if the Eligible Customer 
with the right of first refusal does not agree to match the competing 
request within 24 hours (or earlier if necessary to comply with the 
scheduling deadlines provided in Section 13.8) from being notified by 
the Transmission Provider of a longer-term competing request for Short-
Term Firm Point-To-Point Transmission Service. After the conditional 
reservation deadline, service will commence pursuant to the terms of 
Part II of the Tariff. Firm Point-To-Point Transmission Service will 
always have a reservation priority over Non-Firm Point-To-Point 
Transmission Service under the Tariff. All Long-Term Firm Point-To-
Point Transmission Service will have equal reservation priority with 
Native Load Customers and Network Customers. Reservation priorities for 
existing firm service customers are provided in Section 2.2.
13.3  Use of Firm Transmission Service by the Transmission Provider: 
The Transmission Provider will be subject to the rates, terms and 
conditions of Part II of the Tariff when making Third-Party Sales under 
agreements executed on or after November 25, 1997. The Transmission 
Provider will maintain separate accounting, pursuant to Section 8, for 
any use of the Point-To-Point Transmission Service to make Third-Party 
Sales.
13.4  Service Agreements: The Transmission Provider shall offer a 
standard form Firm Point-To-Point Transmission Service Agreement 
(Attachment A) to an Eligible Customer when it submits a Completed 
Application for Long-Term Firm Point-To-Point Transmission Service. The 
Transmission Provider shall offer a standard form Firm Point-to-Point 
Transmission Service Agreement (Attachment A) to an Eligible Customer 
when it first submits a Completed Application for Short-Term Firm 
Point-to-Point Transmission Service pursuant to the Tariff.
13.5  Transmission Customer Obligations for Facility Additions or 
Redispatch Costs: In cases where the Transmission Provider determines 
that the Transmission System is not capable of providing Firm Point-To-
Point Transmission Service without (1) degrading or impairing the 
reliability of service to Native Load Customers, Network Customers and 
other Transmission Customers taking Firm Point-To-Point Transmission 
Service, or (2) interfering with the Transmission Provider's ability to 
meet prior firm contractual commitments to others, the Transmission 
Provider will be obligated to expand or upgrade its Transmission System 
pursuant to the terms of Section 15.4. The Transmission Customer must 
agree to compensate the Transmission Provider in advance for any 
necessary transmission facility additions pursuant to the terms of 
Section 27. To the extent the Transmission Provider can relieve any 
system constraint more economically by redispatching the Transmission 
Provider's resources than through constructing Network Upgrades, it 
shall do so, provided that the Eligible Customer agrees to compensate 
the Transmission Provider pursuant to the terms of Section 27. Any 
redispatch, Network Upgrade or Direct Assignment Facilities costs to be 
charged to the Transmission Customer on an incremental basis under the 
Tariff will be specified in the Service Agreement or a separate 
agreement, as appropriate, prior to initiating service.
13.6  Curtailment of Firm Transmission Service: In the event that a 
Curtailment on the Transmission Provider's Transmission System, or a 
portion thereof, is required to maintain reliable operation of such 
system, Curtailments will be made on a non-discriminatory basis to the 
transaction(s) that effectively relieve the constraint. If multiple 
transactions require Curtailment, to the extent practicable and 
consistent with Good Utility Practice, the Transmission Provider will 
curtail service to Network Customers and Transmission Customers taking 
Firm Point-To-Point Transmission Service on a basis comparable to the 
curtailment of service to the Transmission Provider's Native Load 
Customers. All Curtailments will be made on a non-discriminatory basis, 
however, Non-Firm Point-To-Point Transmission Service shall be 
subordinate to Firm Transmission Service. When the Transmission 
Provider determines that an electrical emergency exists on its 
Transmission System and

[[Page 50584]]

implements emergency procedures to Curtail Firm Transmission Service, 
the Transmission Customer shall make the required reductions upon 
request of the Transmission Provider. However, the Transmission 
Provider reserves the right to Curtail, in whole or in part, any Firm 
Transmission Service provided under the Tariff when, in the 
Transmission Provider's sole discretion, an emergency or other 
unforeseen condition impairs or degrades the reliability of its 
Transmission System. The Transmission Provider will notify all affected 
Transmission Customers in a timely manner of any scheduled 
Curtailments.
13.7  Classification of Firm Transmission Service:
    (a) The Transmission Customer taking Firm Point-To-Point 
Transmission Service may (1) change its Receipt and Delivery Points to 
obtain service on a non-firm basis consistent with the terms of Section 
22.1 or (2) request a modification of the Points of Receipt or Delivery 
on a firm basis pursuant to the terms of Section 22.2.
    (b) The Transmission Customer may purchase transmission service to 
make sales of capacity and energy from multiple generating units that 
are on the Transmission Provider's Transmission System. For such a 
purchase of transmission service, the resources will be designated as 
multiple Points of Receipt, unless the multiple generating units are at 
the same generating plant in which case the units would be treated as a 
single Point of Receipt.
    (c) The Transmission Provider shall provide firm deliveries of 
capacity and energy from the Point(s) of Receipt to the Point(s) of 
Delivery. Each Point of Receipt at which firm transmission capacity is 
reserved by the Transmission Customer shall be set forth in the Firm 
Point-To-Point Service Agreement for Long-Term Firm Transmission 
Service along with a corresponding capacity reservation associated with 
each Point of Receipt. Points of Receipt and corresponding capacity 
reservations shall be as mutually agreed upon by the Parties for Short-
Term Firm Transmission. Each Point of Delivery at which firm 
transmission capacity is reserved by the Transmission Customer shall be 
set forth in the Firm Point-To-Point Service Agreement for Long-Term 
Firm Transmission Service along with a corresponding capacity 
reservation associated with each Point of Delivery. Points of Delivery 
and corresponding capacity reservations shall be as mutually agreed 
upon by the Parties for Short-Term Firm Transmission. The greater of 
either (1) the sum of the capacity reservations at the Point(s) of 
Receipt, or (2) the sum of the capacity reservations at the Point(s) of 
Delivery shall be the Transmission Customer's Reserved Capacity. The 
Transmission Customer will be billed for its Reserved Capacity under 
the terms of Schedule 7. The Transmission Customer may not exceed its 
firm capacity reserved at each Point of Receipt and each Point of 
Delivery except as otherwise specified in Section 22. The Transmission 
Provider shall specify the rate treatment and all related terms and 
conditions applicable in the event that a Transmission Customer, 
(including Third-Party Sales by the Transmission Provider) exceeds its 
firm reserved capacity at any Point of Receipt or Point of Delivery.
13.8  Scheduling of Firm Point-To-Point Transmission Service: Schedules 
for the Transmission Customer's Firm Point-To-Point Transmission 
Service must be submitted to the Transmission Provider no later than 
10:00 a.m. [or a reasonable time that is generally accepted in the 
region and is consistently adhered to by the Transmission Provider] of 
the day prior to commencement of such service. Schedules submitted 
after 10:00 a.m. will be accommodated, if practicable. Hour-to-hour 
schedules of any capacity and energy that is to be delivered must be 
stated in increments of 1,000 kW per hour [or a reasonable increment 
that is generally accepted in the region and is consistently adhered to 
by the Transmission Provider]. Transmission Customers within the 
Transmission Provider's service area with multiple requests for 
Transmission Service at a Point of Receipt, each of which is under 
1,000 kW per hour, may consolidate their service requests at a common 
point of receipt into units of 1,000 kW per hour for scheduling and 
billing purposes. Scheduling changes will be permitted up to twenty 
(20) minutes [or a reasonable time that is generally accepted in the 
region and is consistently adhered to by the Transmission Provider] 
before the start of the next clock hour provided that the Delivering 
Party and Receiving Party also agree to the schedule modification. The 
Transmission Provider will furnish to the Delivering Party's system 
operator, hour-to-hour schedules equal to those furnished by the 
Receiving Party (unless reduced for losses) and shall deliver the 
capacity and energy provided by such schedules. Should the Transmission 
Customer, Delivering Party or Receiving Party revise or terminate any 
schedule, such party shall immediately notify the Transmission 
Provider, and the Transmission Provider shall have the right to adjust 
accordingly the schedule for capacity and energy to be received and to 
be delivered.

14  Nature of Non-Firm Point-To-Point Transmission Service

14.1  Term: Non-Firm Point-To-Point Transmission Service will be 
available for periods ranging from one (1) hour to one (1) month. 
However, a Purchaser of Non-Firm Point-To-Point Transmission Service 
will be entitled to reserve a sequential term of service (such as a 
sequential monthly term without having to wait for the initial term to 
expire before requesting another monthly term) so that the total time 
period for which the reservation applies is greater than one month, 
subject to the requirements of Section 18.3.
14.2  Reservation Priority: Non-Firm Point-To-Point Transmission 
Service shall be available from transmission capability in excess of 
that needed for reliable service to Native Load Customers, Network 
Customers and other Transmission Customers taking Long-Term and Short-
Term Firm Point-To-Point Transmission Service. A higher priority will 
be assigned to reservations with a longer duration of service. In the 
event the Transmission System is constrained, competing requests of 
equal duration will be prioritized based on the highest price offered 
by the Eligible Customer for the Transmission Service. Eligible 
Customers that have already reserved shorter term service have the 
right of first refusal to match any longer term reservation before 
being preempted. A longer term competing request for Non-Firm Point-To-
Point Transmission Service will be granted if the Eligible Customer 
with the right of first refusal does not agree to match the competing 
request: (a) Immediately for hourly Non-Firm Point-To-Point 
Transmission Service after notification by the Transmission Provider; 
and, (b) within 24 hours (or earlier if necessary to comply with the 
scheduling deadlines provided in Section 14.6) for Non-Firm Point-To-

[[Page 50585]]

Point Transmission Service other than hourly transactions after 
notification by the Transmission Provider. Transmission service for 
Network Customers from resources other than designated Network 
Resources will have a higher priority than any Non-Firm Point-To-Point 
Transmission Service. Non-Firm Point-To-Point Transmission Service over 
secondary Point(s) of Receipt and Point(s) of Delivery will have the 
lowest reservation priority under the Tariff.
14.3  Use of Non-Firm Point-To-Point Transmission Service by the 
Transmission Provider: The Transmission Provider will be subject to the 
rates, terms and conditions of Part II of the Tariff when making Third-
Party Sales under agreements executed on or after November 25, 1997. 
The Transmission Provider will maintain separate accounting, pursuant 
to Section 8, for any use of Non-Firm Point-To-Point Transmission 
Service to make Third-Party Sales.
14.4  Service Agreements: The Transmission Provider shall offer a 
standard form Non-Firm Point-To-Point Transmission Service Agreement 
(Attachment D) to an Eligible Customer when it first submits a 
Completed Application for Non-Firm Point-To-Point Transmission Service 
pursuant to the Tariff.
14.5  Classification of Non-Firm Point-To-Point Transmission Service: 
Non-Firm Point-To-Point Transmission Service shall be offered under 
terms and conditions contained in Part II of the Tariff. The 
Transmission Provider undertakes no obligation under the Tariff to plan 
its Transmission System in order to have sufficient capacity for Non-
Firm Point-To-Point Transmission Service. Parties requesting Non-Firm 
Point-To-Point Transmission Service for the transmission of firm power 
do so with the full realization that such service is subject to 
availability and to Curtailment or Interruption under the terms of the 
Tariff. The Transmission Provider shall specify the rate treatment and 
all related terms and conditions applicable in the event that a 
Transmission Customer (including Third-Party Sales by the Transmission 
Provider) exceeds its non-firm capacity reservation. Non-Firm Point-To-
Point Transmission Service shall include transmission of energy on an 
hourly basis and transmission of scheduled short-term capacity and 
energy on a daily, weekly or monthly basis, but not to exceed one 
month's reservation for any one Application under Schedule 8.
14.6  Scheduling of Non-Firm Point-To-Point Transmission Service: 
Schedules for Non-Firm Point-To-Point Transmission Service must be 
submitted to the Transmission Provider no later than 2:00 p.m. [or a 
reasonable time that is generally accepted in the region and is 
consistently adhered to by the Transmission Provider] of the day prior 
to commencement of such service. Schedules submitted after 2:00 p.m. 
will be accommodated, if practicable. Hour-to-hour schedules of energy 
that are to be delivered must be stated in increments of 1,000 kW per 
hour [or a reasonable increment that is generally accepted in the 
region and is consistently adhered to by the Transmission Provider]. 
Transmission Customers within the Transmission Provider's service area 
with multiple requests for Transmission Service at a Point of Receipt, 
each of which is under 1,000 kW per hour, may consolidate their 
schedules at a common Point of Receipt into units of 1,000 kW per hour. 
Scheduling changes will be permitted up to twenty (20) minutes [or a 
reasonable time that is generally accepted in the region and is 
consistently adhered to by the Transmission Provider] before the start 
of the next clock hour provided that the Delivering Party and Receiving 
Party also agree to the schedule modification. The Transmission 
Provider will furnish to the Delivering Party's system operator, hour-
to-hour schedules equal to those furnished by the Receiving Party 
(unless reduced for losses) and shall deliver the capacity and energy 
provided by such schedules. Should the Transmission Customer, 
Delivering Party or Receiving Party revise or terminate any schedule, 
such party shall immediately notify the Transmission Provider, and the 
Transmission Provider shall have the right to adjust accordingly the 
schedule for capacity and energy to be received and to be delivered.
14.7  Curtailment or Interruption of Service: The Transmission Provider 
reserves the right to Curtail, in whole or in part, Non-Firm Point-To-
Point Transmission Service provided under the Tariff for reliability 
reasons when, an emergency or other unforeseen condition threatens to 
impair or degrade the reliability of its Transmission System. The 
Transmission Provider reserves the right to Interrupt, in whole or in 
part, Non-Firm Point-To-Point Transmission Service provided under the 
Tariff for economic reasons in order to accommodate (1) a request for 
Firm Transmission Service, (2) a request for Non-Firm Point-To-Point 
Transmission Service of greater duration, (3) a request for Non-Firm 
Point-To-Point Transmission Service of equal duration with a higher 
price, or (4) transmission service for Network Customers from non-
designated resources. The Transmission Provider also will discontinue 
or reduce service to the Transmission Customer to the extent that 
deliveries for transmission are discontinued or reduced at the Point(s) 
of Receipt. Where required, Curtailments or Interruptions will be made 
on a non-discriminatory basis to the transaction(s) that effectively 
relieve the constraint, however, Non-Firm Point-To-Point Transmission 
Service shall be subordinate to Firm Transmission Service. If multiple 
transactions require Curtailment or Interruption, to the extent 
practicable and consistent with Good Utility Practice, Curtailments or 
Interruptions will be made to transactions of the shortest term (e.g., 
hourly non-firm transactions will be Curtailed or Interrupted before 
daily non-firm transactions and daily non-firm transactions will be 
Curtailed or Interrupted before weekly non-firm transactions). 
Transmission service for Network Customers from resources other than 
designated Network Resources will have a higher priority than any Non-
Firm Point-To-Point Transmission Service under the Tariff. Non-Firm 
Point-To-Point Transmission Service over secondary Point(s) of Receipt 
and Point(s) of Delivery will have a lower priority than any Non-Firm 
Point-To-Point Transmission Service under the Tariff. The Transmission 
Provider will provide advance notice of Curtailment or Interruption 
where such notice can be provided consistent with Good Utility 
Practice.

15  Service Availability

15.1  General Conditions: The Transmission Provider will provide Firm 
and Non-Firm Point-To-Point Transmission Service over, on or across its 
Transmission System to any Transmission Customer that has met the 
requirements of Section 16.
15.2  Determination of Available Transmission Capability: A description 
of the Transmission Provider's specific methodology for assessing 
available transmission capability posted on the Transmission

[[Page 50586]]

Provider's OASIS (Section 4) is contained in Attachment C of the 
Tariff. In the event sufficient transmission capability may not exist 
to accommodate a service request, the Transmission Provider will 
respond by performing a System Impact Study.
15.3  Initiating Service in the Absence of an Executed Service 
Agreement: If the Transmission Provider and the Transmission Customer 
requesting Firm or Non-Firm Point-To-Point Transmission Service cannot 
agree on all the terms and conditions of the Point-To-Point Service 
Agreement, the Transmission Provider shall commence providing 
Transmission Service subject to the Transmission Customer agreeing to 
(i) compensate the Transmission Provider at the existing rate placed in 
effect pursuant to applicable Federal law and regulations , and (ii) 
comply with the terms and conditions of the Tariff including paying the 
appropriate processing fees in accordance with the terms of Section 
17.3. If the Transmission Customer cannot accept all of the terms and 
conditions of the offered Service Agreement, the Transmission Customer 
may request resolution of the unacceptable terms and conditions under 
Section 12, Dispute Resolution Procedures, of the Tariff. Any changes 
resulting from the Dispute Resolution Procedures will be effective upon 
the date of initial service.
15.4  Obligation to Provide Transmission Service that Requires 
Expansion or Modification of the Transmission System: If the 
Transmission Provider determines that it cannot accommodate a Completed 
Application for Firm Point-To-Point Transmission Service because of 
insufficient capability on its Transmission System, the Transmission 
Provider will use due diligence to expand or modify its Transmission 
System to provide the requested Firm Transmission Service, provided the 
Transmission Customer agrees to compensate the Transmission Provider in 
advance for such costs pursuant to the terms of Section 27. The 
Transmission Provider will conform to Good Utility Practice in 
determining the need for new facilities and in the design and 
construction of such facilities. The obligation applies only to those 
facilities that the Transmission Provider has the right to expand or 
modify.
15.5  Deferral of Service: The Transmission Provider may defer 
providing service until it completes construction of new transmission 
facilities or upgrades needed to provide Firm Point-To-Point 
Transmission Service whenever the Transmission Provider determines that 
providing the requested service would, without such new facilities or 
upgrades, impair or degrade reliability to any existing firm services.
15.6  Other Transmission Service Schedules: Eligible Customers 
receiving transmission service under other agreements on file with the 
Commission may continue to receive transmission service under those 
agreements until such time as those agreements may be modified by the 
Commission.
15.7  Real Power Losses: Real Power Losses are associated with all 
transmission service. The Transmission Provider is not obligated to 
provide Real Power Losses. The Transmission Customer is responsible for 
replacing losses associated with all transmission service as calculated 
by the Transmission Provider. The applicable Real Power Loss factors 
are specified in the Service Agreements.

16  Transmission Customer Responsibilities

16.1  Conditions Required of Transmission Customers: Point-To-Point 
Transmission Service shall be provided by the Transmission Provider 
only if the following conditions are satisfied by the Transmission 
Customer:
    a. The Transmission Customer has pending a Completed Application 
for service;
    b. The Transmission Customer meets the creditworthiness criteria 
set forth in Section 11;
    c. The Transmission Customer will have arrangements in place for 
any other transmission service necessary to effect the delivery from 
the generating source to the Transmission Provider prior to the time 
service under Part II of the Tariff commences;
    d. The Transmission Customer agrees to pay for any facilities 
constructed and chargeable to such Transmission Customer under Part II 
of the Tariff, whether or not the Transmission Customer takes service 
for the full term of its reservation; and
    e. The Transmission Customer has executed a Point-To-Point Service 
Agreement or has agreed to receive service pursuant to Section 15.3.
16.2  Transmission Customer Responsibility for Third-Party 
Arrangements: Any scheduling arrangements that may be required by other 
electric systems shall be the responsibility of the Transmission 
Customer requesting service. The Transmission Customer shall provide, 
unless waived by the Transmission Provider, notification to the 
Transmission Provider identifying such systems and authorizing them to 
schedule the capacity and energy to be transmitted by the Transmission 
Provider pursuant to Part II of the Tariff on behalf of the Receiving 
Party at the Point of Delivery or the Delivering Party at the Point of 
Receipt. However, the Transmission Provider will undertake reasonable 
efforts to assist the Transmission Customer in making such 
arrangements, including without limitation, providing any information 
or data required by such other electric system pursuant to Good Utility 
Practice.

17  Procedures for Arranging Firm Point-To-Point Transmission Service

17.1  Application: A request for Firm Point-To-Point Transmission 
Service for periods of one year or longer must contain a written 
Application to appropriate Regional Office, as identified in Attachment 
K to the Tariff, at least sixty (60) days in advance of the calendar 
month in which service is to commence. The Transmission Provider will 
consider requests for such firm service on shorter notice when 
feasible. Requests for firm service for periods of less than one year 
shall be subject to expedited procedures that shall be negotiated 
between the Parties within the time constraints provided in Section 
17.5. All Firm Point-To-Point Transmission Service requests should be 
submitted by entering the information listed below on the Transmission 
Provider's OASIS. Prior to implementation of the Transmission 
Provider's OASIS, a Completed Application may be submitted by (i) 
transmitting the required information to the Transmission Provider by 
telefax, or (ii) providing the information by telephone over the 
Transmission Provider's time recorded telephone line. Each of these 
methods will provide a time-stamped record for establishing the 
priority of the Application.
17.2  Completed Application: A Completed Application shall provide all 
of the information included in 18 CFR 2.20 including but not limited to 
the following:
    (i) The identity, address, telephone number and facsimile number of 
the entity requesting service;

[[Page 50587]]

    (ii) A statement that the entity requesting service is, or will be 
upon commencement of service, an Eligible Customer under the Tariff;
    (iii) The location of the Point(s) of Receipt and Point(s) of 
Delivery and the identities of the Delivering Parties and the Receiving 
Parties;
    (iv) The location of the generating facility(ies) supplying the 
capacity and energy and the location of the load ultimately served by 
the capacity and energy transmitted. The Transmission Provider will 
treat this information as confidential except to the extent that 
disclosure of this information is required by the Tariff, by regulatory 
or judicial order, for reliability purposes pursuant to Good Utility 
Practice or pursuant to RTG transmission information sharing 
agreements. The Transmission Provider shall treat this information 
consistent with the standards of conduct contained in Part 37 of the 
Commission's regulations;
    (v) A description of the supply characteristics of the capacity and 
energy to be delivered;
    (vi) An estimate of the capacity and energy expected to be 
delivered to the Receiving Party;
    (vii) The Service Commencement Date and the term of the requested 
Transmission Service;
    (viii) The transmission capacity requested for each Point of 
Receipt and each Point of Delivery on the Transmission Provider's 
Transmission System; customers may combine their requests for service 
in order to satisfy the minimum transmission capacity requirement;

    The Transmission Provider shall treat this information consistent 
with the standards of conduct contained in Part 37 of the Commission's 
regulations.

17.3  Processing Fee: A Completed Application for Firm Point-To-Point 
Transmission Service also shall include a non-refundable processing 
fee. Such fee shall be applicable to all Transmission Customers for 
firm Transmission Service requests of one year or longer. Individual 
Transmission Provider processing fees will be calculated using the 
number of estimated hours it will take to process an application and 
will be set forth in Attachment K. This fee does not apply to costs to 
complete System Impact Studies or Facility Studies or to add new 
facilities.
17.4  Notice of Deficient Application: If an Application fails to meet 
the requirements of the Tariff, the Transmission Provider shall notify 
the entity requesting service within fifteen (15) days of receipt of 
the reasons for such failure. The Transmission Provider will attempt to 
remedy minor deficiencies in the Application through informal 
communications with the Eligible Customer. If such efforts are 
unsuccessful, the Transmission Provider shall return the Application. 
Upon receipt of a new or revised Application that fully complies with 
the requirements of Part II of the Tariff, the Eligible Customer shall 
be assigned a new priority consistent with the date of the new or 
revised Application.
17.5  Response to a Completed Application: Following receipt of a 
Completed Application for Firm Point-To-Point Transmission Service, the 
Transmission Provider shall make a determination of available 
transmission capability as required in Section 15.2. The Transmission 
Provider shall notify the Eligible Customer as soon as practicable, but 
not later than thirty (30) days after the date of receipt of a 
Completed Application either (i) if it will be able to provide service 
without performing a System Impact Study or (ii) if such a study is 
needed to evaluate the impact of the Application pursuant to Section 
19.1. Responses by the Transmission Provider must be made as soon as 
practicable to all completed applications (including applications by 
its own merchant function) and the timing of such responses must be 
made on a non-discriminatory basis.
17.6  Execution of a Service Agreement: Whenever the Transmission 
Provider determines that a System Impact Study is not required and that 
the service can be provided, it shall notify the Eligible Customer as 
soon as practicable but no later than thirty (30) days after receipt of 
the Completed Application. Where a System Impact Study is required, the 
provisions of Section 19 will govern the execution of a Service 
Agreement. Failure of an Eligible Customer to execute and return the 
Service Agreement or request service without an executed Service 
Agreement pursuant to Section 15.3, within fifteen (15) days after it 
is tendered by the Transmission Provider will be deemed a withdrawal 
and termination of the Application. Nothing herein limits the right of 
an Eligible Customer to file another Application after such withdrawal 
and termination.
17.7  Extensions for Commencement of Service: The Transmission Customer 
can obtain up to five (5) one-year extensions for the commencement of 
service. The Transmission Customer may postpone service by paying a 
non-refundable annual reservation fee equal to one-month's charge for 
Firm Transmission Service for each year or fraction thereof. If during 
any extension for the commencement of service an Eligible Customer 
submits a Completed Application for Firm Transmission Service, and such 
request can be satisfied only by releasing all or part of the 
Transmission Customer's Reserved Capacity, the original Reserved 
Capacity will be released unless the following condition is satisfied. 
Within thirty (30) days, the original Transmission Customer agrees to 
pay the Firm Point-To-Point transmission rate for its Reserved Capacity 
concurrent with the new Service Commencement Date. In the event the 
Transmission Customer elects to release the Reserved Capacity, the 
reservation fees or portions thereof previously paid will be forfeited.

18  Procedures for Arranging Non-Firm Point-To-Point Transmission 
Service

18.1  Application: Eligible Customers seeking Non-Firm Point-To-Point 
Transmission Service must submit a Completed Application to the 
Transmission Provider. Applications should be submitted by entering the 
information listed below on the Transmission Provider's OASIS. Prior to 
implementation of the Transmission Provider's OASIS, a Completed 
Application may be submitted by (i) transmitting the required 
information to the Transmission Provider by telefax, or (ii) providing 
the information by telephone over the Transmission Provider's time 
recorded telephone line. Each of these methods will provide a time-
stamped record for establishing the service priority of the 
Application.
18.2  Completed Application: A Completed Application shall provide all 
of the information included in 18 CFR 2.20 including but not limited to 
the following:
    (i) The identity, address, telephone number and facsimile number of 
the entity requesting service;
    (ii) A statement that the entity requesting service is, or will be 
upon commencement of service, an Eligible Customer under the Tariff;
    (iii) The Point(s) of Receipt and the Point(s) of Delivery;
    (iv) The maximum amount of capacity

[[Page 50588]]

requested at each Point of Receipt and Point of Delivery; and
    (v) The proposed dates and hours for initiating and terminating 
transmission service hereunder.
    In addition to the information specified above, when required to 
properly evaluate system conditions, the Transmission Provider also may 
ask the Transmission Customer to provide the following:
    (vi) The electrical location of the initial source of the power to 
be transmitted pursuant to the Transmission Customer's request for 
service;
    (vii) The electrical location of the ultimate load

    The Transmission Provider will treat this information in (vi) and 
(vii) as confidential at the request of the Transmission Customer 
except to the extent that disclosure of this information is required by 
this Tariff, by Federal Law or regulatory or judicial order, for 
reliability purposes pursuant to Good Utility Practice, or pursuant to 
RTG transmission information sharing agreements. The Transmission 
Provider shall treat this information consistent with the standards of 
conduct contained in Part 37 of the Commission's regulations.

18.3  Reservation of Non-Firm Point-To-Point Transmission Service: 
Requests for monthly service shall be submitted no earlier than sixty 
(60) days before service is to commence; requests for weekly service 
shall be submitted no earlier than fourteen (14) days before service is 
to commence, requests for daily service shall be submitted no earlier 
than two (2) days before service is to commence, and requests for 
hourly service shall be submitted no earlier than noon the day before 
service is to commence. Requests for service received later than 2:00 
p.m. prior to the day service is scheduled to commence will be 
accommodated if practicable [or such reasonable times that are 
generally accepted in the region and are consistently adhered to by the 
Transmission Provider].
18.4  Determination of Available Transmission Capability: Following 
receipt of a tendered schedule the Transmission Provider will make a 
determination on a non-discriminatory basis of available transmission 
capability pursuant to Section 15.2. Such determination shall be made 
as soon as reasonably practicable after receipt, but not later than the 
following time periods for the following terms of service (i) thirty 
(30) minutes for hourly service, (ii) thirty (30) minutes for daily 
service, (iii) four (4) hours for weekly service, and (iv) two (2) days 
for monthly service. [Or such reasonable times that are generally 
accepted in the region and are consistently adhered to by the 
Transmission Provider].

19  Additional Study Procedures for Firm Point-To-Point Transmission 
Service Requests

19.1  Notice of Need for System Impact Study: After receiving a request 
for service, the Transmission Provider shall determine on a non-
discriminatory basis whether a System Impact Study is needed. A 
description of the Transmission Provider's methodology for completing a 
System Impact Study is provided in Attachment D. If the Transmission 
Provider determines that a System Impact Study is necessary to 
accommodate the requested service, it shall so inform the Eligible 
Customer, as soon as practicable. In such cases, the Transmission 
Provider shall within thirty (30) days of receipt of a Completed 
Application, tender a System Impact Study Agreement pursuant to which 
the Eligible Customer shall agree to advance funds to the Transmission 
Provider for performing the required System Impact Study. For a service 
request to remain a Completed Application, the Eligible Customer shall 
execute the System Impact Study Agreement and return it to the 
Transmission Provider within fifteen (15) days. If the Eligible 
Customer elects not to execute the System Impact Study Agreement, its 
application shall be deemed withdrawn.
19.2  System Impact Study Agreement and Compensation:
    (i) The System Impact Study Agreement will clearly specify the 
Transmission Provider's estimate of the actual cost, and time for 
completion of the System Impact Study. The charge will not exceed the 
actual cost of the study. In performing the System Impact Study, the 
Transmission Provider shall rely, to the extent reasonably practicable, 
on existing transmission planning studies. The Eligible Customer will 
not be assessed a charge for such existing studies; however, the 
Eligible Customer will be responsible for charges associated with any 
modifications to existing planning studies that are reasonably 
necessary to evaluate the impact of the Eligible Customer's request for 
service on the Transmission System.
    (ii) If in response to multiple Eligible Customers requesting 
service in relation to the same competitive solicitation, a single 
System Impact Study is sufficient for the Transmission Provider to 
accommodate the requests for service, the costs of that study shall be 
pro-rated among the Eligible Customers.
    (iii) For System Impact Studies that the Transmission Provider 
conducts on its own behalf, the Transmission Provider shall record the 
cost of the System Impact Studies pursuant to Section 8.
19.3  System Impact Study Procedures: Upon receipt of an executed 
System Impact Study Agreement, the Transmission Provider will use due 
diligence to complete the required System Impact Study within a sixty 
(60) day period. The System Impact Study shall identify any system 
constraints and redispatch options, additional Direct Assignment 
Facilities or Network Upgrades required to provide the requested 
service. In the event that the Transmission Provider is unable to 
complete the required System Impact Study within such time period, it 
shall so notify the Eligible Customer and provide an estimated 
completion date along with an explanation of the reasons why additional 
time is required to complete the required studies. A copy of the 
completed System Impact Study and related work papers shall be made 
available to the Eligible Customer. The Transmission Provider will use 
the same due diligence in completing the System Impact Study for an 
Eligible Customer as it uses when completing studies for itself. The 
Transmission Provider shall notify the Eligible Customer immediately 
upon completion of the System Impact Study if the Transmission System 
will be adequate to accommodate all or part of a request for service or 
that no costs are likely to be incurred for new transmission facilities 
or upgrades. In order for a request to remain a Completed Application, 
within fifteen (15) days of completion of the System Impact Study the 
Eligible Customer must execute a Service Agreement or request service 
without an executed Service Agreement pursuant to Section 15.3, or the 
Application shall be deemed terminated and withdrawn.
19.4  Facilities Study Procedures: If a System Impact Study indicates 
that

[[Page 50589]]

additions or upgrades to the Transmission System are needed to supply 
the Eligible Customer's service request, the Transmission Provider, 
within thirty (30) days of the completion of the System Impact Study, 
shall tender to the Eligible Customer a Facilities Study Agreement 
pursuant to which the Eligible Customer shall agree to advance funds to 
the Transmission Provider for performing the required Facilities Study. 
For a service request to remain a Completed Application, the Eligible 
Customer shall execute the Facilities Study Agreement and return it to 
the Transmission Provider within fifteen (15) days. If the Eligible 
Customer elects not to execute the Facilities Study Agreement, its 
application shall be deemed withdrawn. Upon receipt of an executed 
Facilities Study Agreement, the Transmission Provider will use due 
diligence to complete the required Facilities Study within a sixty (60) 
day period. If the Transmission Provider is unable to complete the 
Facilities Study in the allotted time period, the Transmission Provider 
shall notify the Transmission Customer and provide an estimate of the 
time needed to reach a final determination along with an explanation of 
the reasons that additional time is required to complete the study. 
When completed, the Facilities Study will include a good faith estimate 
of (i) the cost of Direct Assignment Facilities to be charged to the 
Transmission Customer, (ii) the Transmission Customer's appropriate 
share of the cost of any required Network Upgrades as determined 
pursuant to the provisions of Part II of the Tariff, and (iii) the time 
required to complete such construction and initiate the requested 
service. The Transmission Customer shall pay the Transmission Provider 
in advance the Transmission Customer's share of the costs of new 
facilities or upgrades. The Transmission Customer shall have thirty 
(30) days to execute a construction agreement and a Service Agreement 
and provide the advance payment or request service without an executed 
Service Agreement pursuant to Section 15.3 and provide the required 
letter of credit or other form of security or the request will no 
longer be a Completed Application and shall be deemed terminated and 
withdrawn.
19.5  Facilities Study Modifications: Any change in design arising from 
inability to site or construct facilities as proposed will require 
development of a revised good faith estimate. New good faith estimates 
also will be required in the event of new statutory or regulatory 
requirements that are effective before the completion of construction 
or other circumstances beyond the control of the Transmission Provider 
that significantly affect the final cost of new facilities or upgrades 
to be charged to the Transmission Customer pursuant to the provisions 
of Part II of the Tariff.
19.6  Due Diligence in Completing New Facilities: The Transmission 
Provider shall use due diligence to add necessary facilities or upgrade 
its Transmission System within a reasonable time. The Transmission 
Provider will not upgrade its existing or planned Transmission System 
in order to provide the requested Firm Point-To-Point Transmission 
Service if doing so would impair system reliability or otherwise impair 
or degrade existing firm service.
19.7  Partial Interim Service: If the Transmission Provider determines 
that it will not have adequate transmission capability to satisfy the 
full amount of a Completed Application for Firm Point-To-Point 
Transmission Service, the Transmission Provider nonetheless shall be 
obligated to offer and provide the portion of the requested Firm Point-
To-Point Transmission Service that can be accommodated without addition 
of any facilities and through redispatch. However, the Transmission 
Provider shall not be obligated to provide the incremental amount of 
requested Firm Point-To-Point Transmission Service that requires the 
addition of facilities or upgrades to the Transmission System until 
such facilities or upgrades have been placed in service.
19.8  Expedited Procedures for New Facilities: In lieu of the 
procedures set forth above, the Eligible Customer shall have the option 
to expedite the process by requesting the Transmission Provider to 
tender at one time, together with the results of required studies, an 
``Expedited Service Agreement'' pursuant to which the Eligible Customer 
would agree to compensate the Transmission Provider in advance for all 
costs incurred pursuant to the terms of the Tariff. In order to 
exercise this option, the Eligible Customer shall request in writing an 
expedited Service Agreement covering all of the above-specified items 
within thirty (30) days of receiving the results of the System Impact 
Study identifying needed facility additions or upgrades or costs 
incurred in providing the requested service. While the Transmission 
Provider agrees to provide the Eligible Customer with its best estimate 
of the new facility costs and other charges that may be incurred, such 
estimate shall not be binding and the Eligible Customer must agree in 
writing to compensate the Transmission Provider in advance for all 
costs incurred pursuant to the provisions of the Tariff. The Eligible 
Customer shall execute and return such an Expedited Service Agreement 
within fifteen (15) days of its receipt or the Eligible Customer's 
request for service will cease to be a Completed Application and will 
be deemed terminated and withdrawn.

20  Procedures if the Transmission Provider Is Unable To Complete New 
Transmission Facilities for Firm Point-To-Point Transmission Service

20.1  Delays in Construction of New Facilities: If any event occurs 
that will materially affect the time for completion of new facilities, 
or the ability to complete them, the Transmission Provider shall 
promptly notify the Transmission Customer. In such circumstances, the 
Transmission Provider shall within thirty (30) days of notifying the 
Transmission Customer of such delays, convene a technical meeting with 
the Transmission Customer to evaluate the alternatives available to the 
Transmission Customer. The Transmission Provider also shall make 
available to the Transmission Customer studies and work papers related 
to the delay, including all information that is in the possession of 
the Transmission Provider that is reasonably needed by the Transmission 
Customer to evaluate any alternatives.
20.2  Alternatives to the Original Facility Additions: When the review 
process of Section 20.1 determines that one or more alternatives exist 
to the originally planned construction project, the Transmission 
Provider shall present such alternatives for consideration by the 
Transmission Customer. If, upon review of any alternatives, the 
Transmission Customer desires to maintain its Completed Application 
subject to construction of the alternative facilities, it may request 
the Transmission Provider to submit a revised Service Agreement for 
Firm Point-To-Point Transmission Service. If the alternative approach 
solely involves Non-Firm Point-To-Point Transmission Service, the

[[Page 50590]]

Transmission Provider shall promptly tender a Service Agreement for 
Non-Firm Point-To-Point Transmission Service providing for the service. 
In the event the Transmission Provider concludes that no reasonable 
alternative exists and the Transmission Customer disagrees, the 
Transmission Customer may seek relief under the dispute resolution 
procedures pursuant to Section 12 or it may refer the dispute to the 
Commission for resolution.
20.3  Refund Obligation for Unfinished Facility Additions: If the 
Transmission Provider and the Transmission Customer mutually agree that 
no other reasonable alternatives exist and the requested service cannot 
be provided out of existing capability under the conditions of Part II 
of the Tariff, the obligation to provide the requested Firm Point-To-
Point Transmission Service shall terminate and any advance payment made 
by the Transmission Customer that is in excess of the costs incurred by 
the Transmission Provider through the time construction was suspended 
shall be returned. However, the Transmission Customer shall be 
responsible for all prudently incurred costs by the Transmission 
Provider through the time construction was suspended.

21  Provisions Relating to Transmission Construction and Services on 
the Systems of Other Utilities

21.1  Responsibility for Third-Party System Additions: The Transmission 
Provider shall not be responsible for making arrangements for any 
necessary engineering, permitting, and construction of transmission or 
distribution facilities on the system(s) of any other entity or for 
obtaining any regulatory approval for such facilities. The Transmission 
Provider will undertake reasonable efforts to assist the Transmission 
Customer in obtaining such arrangements, including without limitation, 
providing any information or data required by such other electric 
system pursuant to Good Utility Practice.
21.2  Coordination of Third-Party System Additions: In circumstances 
where the need for transmission facilities or upgrades is identified 
pursuant to the provisions of Part II of the Tariff, and if such 
upgrades further require the addition of transmission facilities on 
other systems, the Transmission Provider shall have the right to 
coordinate construction on its own system with the construction 
required by others. The Transmission Provider, after consultation with 
the Transmission Customer and representatives of such other systems, 
may defer construction of its new transmission facilities, if the new 
transmission facilities on another system cannot be completed in a 
timely manner. The Transmission Provider shall notify the Transmission 
Customer in writing of the basis for any decision to defer construction 
and the specific problems which must be resolved before it will 
initiate or resume construction of new facilities. Within sixty (60) 
days of receiving written notification by the Transmission Provider of 
its intent to defer construction pursuant to this section, the 
Transmission Customer may challenge the decision in accordance with the 
dispute resolution procedures pursuant to Section 12 or it may refer 
the dispute to the Commission for resolution.

22  Changes in Service Specifications

    22.1  Modifications On a Non-Firm Basis: The Transmission Customer 
taking Firm Point-To-Point Transmission Service may request the 
Transmission Provider to provide transmission service on a non-firm 
basis over Receipt and Delivery Points other than those specified in 
the Service Agreement (``Secondary Receipt and Delivery Points''), in 
amounts not to exceed its firm capacity reservation, without incurring 
an additional Non-Firm Point-To-Point Transmission Service charge or 
executing a new Service Agreement, subject to the following conditions.
    (a) Service provided over Secondary Receipt and Delivery Points 
will be non-firm only, on an as-available basis and will not displace 
any firm or non-firm service reserved or scheduled by third-parties 
under the Tariff or by the Transmission Provider on behalf of its 
Native Load Customers.
    (b) The sum of all Firm and non-firm Point-To-Point Transmission 
Service provided to the Transmission Customer at any time pursuant to 
this section shall not exceed the Reserved Capacity in the relevant 
Service Agreement under which such services are provided.
    (c) The Transmission Customer shall retain its right to schedule 
Firm Point-To-Point Transmission Service at the Receipt and Delivery 
Points specified in the relevant Service Agreement in the amount of its 
original capacity reservation.
    (d) Service over Secondary Receipt and Delivery Points on a non-
firm basis shall not require the filing of an Application for Non-Firm 
Point-To-Point Transmission Service under the Tariff. However, all 
other requirements of Part II of the Tariff (except as to transmission 
rates) shall apply to transmission service on a non-firm basis over 
Secondary Receipt and Delivery Points.
22.2  Modifications On a Firm Basis: Any request by a Transmission 
Customer to modify Receipt and Delivery Points on a firm basis shall be 
treated as a new request for service in accordance with Section 17 
hereof except that such Transmission Customer shall not be obligated to 
pay any additional application processing fee if the capacity 
reservation does not exceed the amount reserved in the existing Service 
Agreement. While such new request is pending, the Transmission Customer 
shall retain its priority for service at the existing firm Receipt and 
Delivery Points specified in its Service Agreement.

23  Sale or Assignment of Transmission Service

23.1  Procedures for Assignment or Transfer of Service: Subject to 
Commission approval of any necessary filings, a Transmission Customer 
may sell, assign, or transfer all or a portion of its rights under its 
Service Agreement, but only to another Eligible Customer (the 
Assignee). The Transmission Customer that sells, assigns or transfers 
its rights under its Service Agreement is hereafter referred to as the 
Reseller. Compensation to the Reseller shall not exceed the higher of 
(i) the original rate paid by the Reseller, (ii) the Transmission 
Provider's maximum rate on file at the time of the assignment, or (iii) 
the Reseller's opportunity cost capped at the Transmission Provider's 
cost of expansion. If the Assignee does not request any change in the 
Point(s) of Receipt or the Point(s) of Delivery, or a change in any 
other term or condition set forth in the original Service Agreement, 
the Assignee will receive the same services as did the Reseller and the 
priority of service for the Assignee will be the same as that of the 
Reseller. A Reseller should notify the Transmission Provider as soon as 
possible after any assignment or transfer of service occurs but in any 
event, notification must be provided prior to any provision of service 
to the Assignee. The Assignee will be subject to all terms and 
conditions of the Tariff. If the Assignee requests a change in service, 
the reservation priority of service will be determined

[[Page 50591]]

by the Transmission Provider pursuant to Section 13.2.
23.2  Limitations on Assignment or Transfer of Service: If the Assignee 
requests a change in the Point(s) of Receipt or Point(s) of Delivery, 
or a change in any other specifications set forth in the original 
Service Agreement, the Transmission Provider will consent to such 
change subject to the provisions of the Tariff, provided that the 
change will not impair the operation and reliability of the 
Transmission Provider's generation, transmission, or distribution 
systems. The Assignee shall compensate the Transmission Provider in 
advance for performing any System Impact Study needed to evaluate the 
capability of the Transmission System to accommodate the proposed 
change and any additional costs resulting from such change. The 
Reseller shall remain liable for the performance of all obligations 
under the Service Agreement, except as specifically agreed to by the 
Parties through an amendment to the Service Agreement.
23.3  Information on Assignment or Transfer of Service: In accordance 
with Section 4, Resellers may use the Transmission Provider's OASIS to 
post transmission capacity available for resale.

24  Metering and Power Factor Correction at Receipt and Delivery 
Point(s)

24.1  Transmission Customer Obligations: Unless otherwise agreed, the 
Transmission Customer shall be responsible for installing and 
maintaining compatible metering and communications equipment to 
accurately account for the capacity and energy being transmitted under 
Part II of the Tariff and to communicate the information to the 
Transmission Provider. Such equipment shall remain the property of the 
Transmission Customer.
24.2  Transmission Provider Access to Metering Data: The Transmission 
Provider shall have access to metering data, which may reasonably be 
required to facilitate measurements and billing under the Service 
Agreement.
24.3  Power Factor: Unless otherwise agreed, the Transmission Customer 
is required to maintain a power factor within the same range as the 
Transmission Provider pursuant to Good Utility Practices. The power 
factor requirements are specified in the Service Agreement where 
applicable.

25  Compensation for Transmission Service

    Rates for Firm and Non-Firm Point-To-Point Transmission Service are 
provided in the Schedules appended to the Tariff: Firm Point-To-Point 
Transmission Service (Schedule 7); and Non-Firm Point-To-Point 
Transmission Service (Schedule 8). The Transmission Provider shall use 
Part II of the Tariff to make its Third-Party Sales. The Transmission 
Provider shall account for such use at the applicable Tariff rates, 
pursuant to Section 8.

26  Stranded Cost Recovery

    The Transmission Provider may seek to recover stranded costs from 
the Transmission Customer in a manner consistent with applicable 
Federal law and regulations.

27  Compensation for New Facilities and Redispatch Costs

    Whenever a System Impact Study performed by the Transmission 
Provider in connection with the provision of Firm Point-To-Point 
Transmission Service identifies the need for new facilities, the 
Transmission Customer shall be responsible for such costs to the extent 
consistent with Commission policy. Whenever a System Impact Study 
performed by the Transmission Provider identifies capacity constraints 
that may be relieved more economically by redispatching the 
Transmission Provider's resources than by building new facilities or 
upgrading existing facilities to eliminate such constraints, the 
Transmission Customer shall be responsible for the redispatch costs to 
the extent consistent with Commission policy.

Part III. Network Integration Transmission Service

Preamble
    The Transmission Provider will provide Network Integration 
Transmission Service pursuant to the applicable terms and conditions 
contained in the Tariff and Service Agreement. Network Integration 
Transmission Service allows the Network Customer to integrate, 
economically dispatch and regulate its current and planned Network 
Resources to serve its Network Load in a manner comparable to that in 
which the Transmission Provider utilizes its Transmission System to 
serve its Native Load Customers. Network Integration Transmission 
Service also may be used by the Network Customer to deliver economy 
energy purchases to its Network Load from non-designated resources on 
an as-available basis without additional charge. Transmission service 
for sales to non-designated loads will be provided pursuant to the 
applicable terms and conditions of Part II of the Tariff.

28  Nature of Network Integration Transmission Service

28.1  Scope of Service: Network Integration Transmission Service is a 
transmission service that allows Network Customers to efficiently and 
economically utilize their Network Resources (as well as other non-
designated generation resources) to serve their Network Load located in 
the Transmission Provider's Control Area and any additional load that 
may be designated pursuant to Section 31.3 of the Tariff. The Network 
Customer taking Network Integration Transmission Service must obtain or 
provide Ancillary Services pursuant to Section 3.
28.2  Transmission Provider Responsibilities: The Transmission Provider 
will plan, construct, operate and maintain its Transmission System in 
accordance with Good Utility Practice in order to provide the Network 
Customer with Network Integration Transmission Service over the 
Transmission Provider's Transmission System. The Transmission Provider, 
on behalf of its Native Load Customers, shall be required to designate 
resources and loads in the same manner as any Network Customer under 
Part III of the Tariff. This information must be consistent with the 
information used by the Transmission Provider to calculate available 
transmission capability. The Transmission Provider shall include the 
Network Customer's Network Load in its Transmission System planning and 
shall, consistent with Good Utility Practice, endeavor to construct and 
place into service sufficient transmission capacity to deliver the 
Network Customer's Network Resources to serve its Network Load on a 
basis comparable to the Transmission Provider's delivery of its own 
generating and purchased resources to its Native Load Customers. This 
obligation to construct and place into service sufficient capacity to 
deliver the Network Customer's Network Resources to serve its Network 
Load is contingent upon the availability to Western of sufficient 
appropriations, when needed, and the Transmission Customer's advanced 
funds.
28.3  Network Integration Transmission Service: The Transmission 
Provider will provide firm transmission service over its Transmission 
System to the

[[Page 50592]]

Network Customer for the delivery of capacity and energy from its 
designated Network Resources to service its Network Loads on a basis 
that is comparable to the Transmission Provider's use of the 
Transmission System to reliably serve its Native Load Customers.
28.4  Secondary Service: The Network Customer may use the Transmission 
Provider's Transmission System to deliver energy to its Network Loads 
from resources that have not been designated as Network Resources. Such 
energy shall be transmitted, on an as-available basis, at no additional 
charge. Deliveries from resources other than Network Resources will 
have a higher priority than any Non-Firm Point-To-Point Transmission 
Service under Part II of the Tariff.
28.5  Real Power Losses: Real Power Losses are associated with all 
transmission service. The Transmission Provider is not obligated to 
provide Real Power Losses. The Network Customer is responsible for 
replacing losses associated with all transmission service as calculated 
by the Transmission Provider. The applicable Real Power Loss factors 
are specified in the Service Agreements.
28.6  Restrictions on Use of Service: The Network Customer shall not 
use Network Integration Transmission Service for (i) sales of capacity 
and energy to non-designated loads, or (ii) direct or indirect 
provision of transmission service by the Network Customer to third 
parties. All Network Customers taking Network Integration Transmission 
Service shall use Point-To-Point Transmission Service under Part II of 
the Tariff for any Third-Party Sale which requires use of the 
Transmission Provider's Transmission System.

29  Initiating Service

29.1  Condition Precedent for Receiving Service: Subject to the terms 
and conditions of Part III of the Tariff, the Transmission Provider 
will provide Network Integration Transmission Service to any Eligible 
Customer provided that (i) the Eligible Customer completes an 
Application for service as provided under Part III of the Tariff, (ii) 
the Eligible Customer and the Transmission Provider complete the 
technical arrangements set forth in Sections 29.3 and 29.4, (iii) the 
Eligible Customer executes a Service Agreement pursuant to Attachment F 
for service under Part III of the Tariff or requests in writing that 
the Transmission Provider provide service without an executed Service 
Agreement, and (iv) the Eligible Customer executes a Network Operating 
Agreement with the Transmission Provider pursuant to Attachment G. If 
the Transmission Provider and the Network Customer cannot agree on all 
the terms and conditions of the Network Service Agreement, the 
Transmission Provider shall commence providing Network Integration 
Transmission Service subject to the Network Customer agreeing to (i) 
compensate the Transmission Provider at the existing rate placed in 
effect pursuant to applicable Federal law and regulations, and (ii) 
comply with the terms and conditions of the Tariff including paying the 
appropriate processing fees in accordance with the terms of Section 
29.2. If the Network Customer cannot accept all of the terms and 
conditions of the offered Service Agreement, the Network Customer may 
request resolution of the unacceptable terms and conditions under 
Section 12, Dispute Resolution Procedures, of the Tariff. Any changes 
resulting from the Dispute Resolution Procedures will be effective upon 
the date of initial service.
29.2  Application Procedures: An Eligible Customer requesting service 
under Part III of the Tariff must submit an Application to the 
Transmission Provider as far as possible in advance of the month in 
which service is to commence. Unless subject to the procedures in 
Section 2, Completed Applications for Network Integration Transmission 
Service will be assigned a priority according to the date and time the 
Application is received, with the earliest Application receiving the 
highest priority. Applications should be submitted by entering the 
information listed below on the Transmission Provider's OASIS. Prior to 
implementation of the Transmission Provider's OASIS, a Completed 
Application may be submitted by (i) transmitting the required 
information to the Transmission Provider by telefax, or (ii) providing 
the information by telephone over the Transmission Provider's time 
recorded telephone line. Each of these methods will provide a time-
stamped record for establishing the service priority of the 
Application. A Completed Application for Network Integration 
Transmission Service also shall include a non-refundable processing 
fee. Such fee shall be applicable to all Transmission Customers for 
firm Transmission Service requests of one year or longer. Individual 
Transmission Provider processing fees will be calculated using the 
number of estimated hours it will take to process an application and 
will be set forth in Attachment K. This fee does not apply to costs to 
complete System Impact Studies or Facility Studies or to add new 
facilities. A Completed Application shall provide all of the 
information included in 18 CFR 2.20 including but not limited to the 
following:
    (i)  The identity, address, telephone number and facsimile number 
of the party requesting service;
    (ii)  A statement that the party requesting service is, or will be 
upon commencement of service, an Eligible Customer under the Tariff;
    (iii)  A description of the Network Load at each delivery point. 
This description should separately identify and provide the Eligible 
Customer's best estimate of the total loads to be served at each 
transmission voltage level, and the loads to be served from each 
Transmission Provider substation at the same transmission voltage 
level. The description should include a ten (10) year forecast of 
summer and winter load and resource requirements beginning with the 
first year after the service is scheduled to commence;
    (iv)  The amount and location of any interruptible loads included 
in the Network Load. This shall include the summer and winter capacity 
requirements for each interruptible load (had such load not been 
interruptible), that portion of the load subject to interruption, the 
conditions under which an interruption can be implemented and any 
limitations on the amount and frequency of interruptions. An Eligible 
Customer should identify the amount of interruptible customer load (if 
any), included in the 10 year load forecast provided in response to 
(iii) above;
    (v)  A description of Network Resources (current and 10-year 
projection), which shall include, for each Network Resource:

--Unit size and amount of capacity from that unit to be designated as 
Network Resource
--VAR capability (both leading and lagging), of all generators
--Operating restrictions
--Any periods of restricted operations throughout the year
--Maintenance schedules
--Minimum loading level of unit
--Normal operating level of unit

[[Page 50593]]

--Any must-run unit designations required for system reliability or 
contract reasons
--Approximate variable generating cost ($/MWH) for redispatch 
computations
--Arrangements governing sale and delivery of power to third parties 
from generating facilities located in the Transmission Provider Control 
Area, where only a portion of unit output is designated as a Network 
Resource
--Description of purchased power designated as a Network Resource 
including source of supply, Control Area location, transmission 
arrangements and delivery point(s) to the Transmission Provider's 
Transmission System;
    (vi)  Description of Eligible Customer's transmission system:
--Load flow and stability data, such as real and reactive parts of the 
load, lines, transformers, reactive devices and load type, including 
normal and emergency ratings of all transmission equipment in a load 
flow format compatible with that used by the Transmission Provider
--Operating restrictions needed for reliability
--Operating guides employed by system operators
--Contractual restrictions or committed uses of the Eligible Customer's 
transmission system, other than the Eligible Customer's Network Loads 
and Resources
--Location of Network Resources described in subsection (v) above
--10 year projection of system expansions or upgrades
--Transmission System maps that include any proposed expansions or 
upgrades
--Thermal ratings of Eligible Customer's Control Area ties with other 
Control Areas;

    (vii)  Service Commencement Date and the term of the requested 
Network Integration Transmission Service. The minimum term for Network 
Integration Transmission Service is one year;

    Unless the Parties agree to a different time frame, the 
Transmission Provider must acknowledge the request within ten (10) days 
of receipt. The acknowledgment must include a date by which a response, 
including a Service Agreement, will be sent to the Eligible Customer. 
If an Application fails to meet the requirements of this section, the 
Transmission Provider shall notify the Eligible Customer requesting 
service within fifteen (15) days of receipt and specify the reasons for 
such failure. Wherever possible, the Transmission Provider will attempt 
to remedy deficiencies in the Application through informal 
communications with the Eligible Customer. If such efforts are 
unsuccessful, the Transmission Provider shall return the Application 
without prejudice to the Eligible Customer filing a new or revised 
Application that fully complies with the requirements of this section. 
The Eligible Customer will be assigned a new priority consistent with 
the date of the new or revised Application. The Transmission Provider 
shall treat this information consistent with the standards of conduct 
contained in Part 37 of the Commission's regulations.

29.3  Technical Arrangements to be Completed Prior to Commencement of 
Service: Network Integration Transmission Service shall not commence 
until the Transmission Provider and the Network Customer or a third 
party, have completed installation of all equipment specified under the 
Network Operating Agreement consistent with Good Utility Practice and 
any additional requirements reasonably and consistently imposed to 
ensure the reliable operation of the Transmission System. The 
Transmission Provider shall exercise reasonable efforts, in 
coordination with the Network Customer to complete such arrangements as 
soon as practicable taking into consideration the Service Commencement 
Date.
29.4  Network Customer Facilities: The provision of Network Integration 
Transmission Service shall be conditioned upon the Network Customer 
constructing, maintaining and operating the facilities on its side of 
each delivery point or interconnection necessary to reliably deliver 
capacity and energy from the Transmission Provider's Transmission 
System to the Network Customer. The Network Customer shall be solely 
responsible for constructing or installing all facilities on the 
Network Customer's side of each such delivery point or interconnection.
29.5  This section is intentionally left blank.

30  Network Resources

30.1  Designation of Network Resources: Network Resources shall include 
all generation owned, purchased, or leased by the Network Customer 
designated to serve Network Load under the Tariff. Network Resources 
may not include resources, or any portion thereof, that are committed 
for sale to non-designated third party load or otherwise cannot be 
called upon to meet the Network Customer's Network Load on a non-
interruptible basis. Any owned or purchased resources that were serving 
the Network Customer's loads under firm agreements entered into on or 
before the Service Commencement Date shall initially be designated as 
Network Resources until the Network Customer terminates the designation 
of such resources.
30.2  Designation of New Network Resources: The Network Customer may 
designate a new Network Resource by providing the Transmission Provider 
with as much advance notice as practicable. A designation of a new 
Network Resource must be made by a request for modification of service 
pursuant to an Application under Section 29.
30.3  Termination of Network Resources: The Network Customer may 
terminate the designation of all or part of a generating resource as a 
Network Resource at any time but should provide notification to the 
Transmission Provider as soon as reasonably practicable.
30.4  Operation of Network Resources: The Network Customer shall not 
operate its designated Network Resources located in the Network 
Customer's or Transmission Provider's Control Area such that the output 
of those facilities exceeds its designated Network Load, plus non-firm 
sales delivered pursuant to Part II of the Tariff, plus losses. This 
limitation shall not apply to changes in the operation of a 
Transmission Customer's Network Resources at the request of the 
Transmission Provider to respond to an emergency or other unforeseen 
condition which may impair or degrade the reliability of the 
Transmission System.
30.5  Network Customer Redispatch Obligation: As a condition to 
receiving Network Integration Transmission Service, the Network 
Customer agrees to redispatch its Network Resources as requested by the 
Transmission Provider pursuant to Section 33.2. To the extent 
practical, the redispatch of resources pursuant to this section shall 
be on a least cost, non-discriminatory basis between all Network 
Customers, and the Transmission Provider.
30.6  Transmission Arrangements for Network Resources Not Physically 
Interconnected With The Transmission Provider: The Network Customer 
shall be responsible for any arrangements necessary to deliver capacity 
and energy from a Network Resource not physically interconnected with 
the Transmission Provider's Transmission System. The Transmission 
Provider will undertake

[[Page 50594]]

reasonable efforts to assist the Network Customer in obtaining such 
arrangements, including without limitation, providing any information 
or data required by such other entity pursuant to Good Utility 
Practice.
30.7  Limitation on Designation of Network Resources: The Network 
Customer must demonstrate that it owns or has committed to purchase 
generation pursuant to an executed contract in order to designate a 
generating resource as a Network Resource. Alternatively, the Network 
Customer may establish that execution of a contract is contingent upon 
the availability of transmission service under Part III of the Tariff.
30.8  Use of Interface Capacity by the Network Customer: There is no 
limitation upon a Network Customer's use of the Transmission Provider's 
Transmission System at any particular interface to integrate the 
Network Customer's Network Resources (or substitute economy purchases) 
with its Network Loads. However, a Network Customer's use of the 
Transmission Provider's total interface capacity with other 
transmission systems may not exceed the Network Customer's Load.
30.9  Network Customer Owned Transmission Facilities: The Network 
Customer that owns existing transmission facilities that are integrated 
with the Transmission Provider's Transmission System may be eligible to 
receive consideration either through a billing credit or some other 
mechanism. In order to receive such consideration the Network Customer 
must demonstrate that its transmission facilities are integrated into 
the plans or operations of the Transmission Provider to serve its power 
and transmission customers. For facilities constructed by the Network 
Customer subsequent to the Service Commencement Date under Part III of 
the Tariff, the Network Customer shall receive credit where such 
facilities are jointly planned and installed in coordination with the 
Transmission Provider. Calculation of the credit shall be addressed in 
either the Network Customer's Service Agreement or any other agreement 
between the Parties.

31  Designation of Network Load

31.1  Network Load: The Network Customer must designate the individual 
Network Loads on whose behalf the Transmission Provider will provide 
Network Integration Transmission Service. The Network Loads shall be 
specified in the Service Agreement.
31.2  New Network Loads Connected With the Transmission Provider: The 
Network Customer shall provide the Transmission Provider with as much 
advance notice as reasonably practicable of the designation of new 
Network Load that will be added to its Transmission System. A 
designation of new Network Load must be made through a modification of 
service pursuant to a new Application. The Transmission Provider will 
use due diligence to install any transmission facilities required to 
interconnect a new Network Load designated by the Network Customer. The 
costs of new facilities required to interconnect a new Network Load 
shall be determined in accordance with the procedures provided in 
Section 32.4 and shall be charged to the Network Customer in accordance 
with Commission policies.
31.3  Network Load Not Physically Interconnected with the Transmission 
Provider: This section applies to both initial designation pursuant to 
Section 31.1 and the subsequent addition of new Network Load not 
physically interconnected with the Transmission Provider. To the extent 
that the Network Customer desires to obtain transmission service for a 
load outside the Transmission Provider's Transmission System, the 
Network Customer shall have the option of (1) electing to include the 
entire load as Network Load for all purposes under Part III of the 
Tariff and designating Network Resources in connection with such 
additional Network Load, or (2) excluding that entire load from its 
Network Load and purchasing Point-To-Point Transmission Service under 
Part II of the Tariff. To the extent that the Network Customer gives 
notice of its intent to add a new Network Load as part of its Network 
Load pursuant to this section the request must be made through a 
modification of service pursuant to a new Application.
31.4  New Interconnection Points: To the extent the Network Customer 
desires to add a new Delivery Point or interconnection point between 
the Transmission Provider's Transmission System and a Network Load, the 
Network Customer shall provide the Transmission Provider with as much 
advance notice as reasonably practicable.
31.5  Changes in Service Requests: Under no circumstances shall the 
Network Customer's decision to cancel or delay a requested change in 
Network Integration Transmission Service (e.g. the addition of a new 
Network Resource or designation of a new Network Load) in any way 
relieve the Network Customer of its obligation to pay the costs of 
transmission facilities constructed by the Transmission Provider and 
charged to the Network Customer as reflected in the Service Agreement. 
However, the Transmission Provider must treat any requested change in 
Network Integration Transmission Service in a non-discriminatory 
manner. The Transmission Provider will have no obligation to refund any 
advance of funds expended for purposes of providing facilities for a 
Network Customer. However, upon receipt of a Network Customer's written 
notice of such a cancellation or delay, the Transmission Provider will 
use the same reasonable efforts to mitigate the costs and charges owed 
to the Transmission Provider as it would to reduce its own costs and 
charges.
31.6  Annual Load and Resource Information Updates: The Network 
Customer shall provide the Transmission Provider with annual updates of 
Network Load and Network Resource forecasts consistent with those 
included in its Application for Network Integration Transmission 
Service under Part III of the Tariff. The Network Customer also shall 
provide the Transmission Provider with timely written notice of 
material changes in any other information provided in its Application 
relating to the Network Customer's Network Load, Network Resources, its 
transmission system or other aspects of its facilities or operations 
affecting the Transmission Provider's ability to provide reliable 
service.

32  Additional Study Procedures For Network Integration Transmission 
Service Requests

32.1  Notice of Need for System Impact Study: After receiving a request 
for service, the Transmission Provider shall determine on a non-
discriminatory basis whether a System Impact Study is needed. A 
description of the Transmission Provider's methodology for completing a 
System Impact Study is provided in Attachment D. If the Transmission 
Provider determines that a System Impact Study is necessary to 
accommodate the requested service, it shall so inform the Eligible 
Customer, as soon as practicable. In such cases, the Transmission 
Provider shall within thirty (30) days of receipt of a Completed 
Application, tender a System Impact Study Agreement pursuant to which 
the Eligible Customer shall agree to advance funds

[[Page 50595]]

to the Transmission Provider for performing the required System Impact 
Study. For a service request to remain a Completed Application, the 
Eligible Customer shall execute the System Impact Study Agreement and 
return it to the Transmission Provider within fifteen (15) days. If the 
Eligible Customer elects not to execute the System Impact Study 
Agreement, its Application shall be deemed withdrawn.
32.2  System Impact Study Agreement and Compensation:
    (i) The System Impact Study Agreement will clearly specify the 
Transmission Provider's estimate of the actual cost, and time for 
completion of the System Impact Study. The charge shall not exceed the 
actual cost of the study. In performing the System Impact Study, the 
Transmission Provider shall rely, to the extent reasonably practicable, 
on existing transmission planning studies. The Eligible Customer will 
not be assessed a charge for such existing studies; however, the 
Eligible Customer will be responsible for charges associated with any 
modifications to existing planning studies that are reasonably 
necessary to evaluate the impact of the Eligible Customer's request for 
service on the Transmission System.
    (ii) If in response to multiple Eligible Customers requesting 
service in relation to the same competitive solicitation, a single 
System Impact Study is sufficient for the Transmission Provider to 
accommodate the service requests, the costs of that study shall be pro-
rated among the Eligible Customers.
    (iii) For System Impact Studies that the Transmission Provider 
conducts on its own behalf, the Transmission Provider shall record the 
cost of the System Impact Studies pursuant to Section 8.
32.3  System Impact Study Procedures: Upon receipt of an executed 
System Impact Study Agreement, the Transmission Provider will use due 
diligence to complete the required System Impact Study within a sixty 
(60) day period. The System Impact Study shall identify any system 
constraints and redispatch options, additional Direct Assignment 
Facilities or Network Upgrades required to provide the requested 
service. In the event that the Transmission Provider is unable to 
complete the required System Impact Study within such time period, it 
shall so notify the Eligible Customer and provide an estimated 
completion date along with an explanation of the reasons why additional 
time is required to complete the required studies. A copy of the 
completed System Impact Study and related work papers shall be made 
available to the Eligible Customer. The Transmission Provider will use 
the same due diligence in completing the System Impact Study for an 
Eligible Customer as it uses when completing studies for itself. The 
Transmission Provider shall notify the Eligible Customer immediately 
upon completion of the System Impact Study if the Transmission System 
will be adequate to accommodate all or part of a request for service or 
that no costs are likely to be incurred for new transmission facilities 
or upgrades. In order for a request to remain a Completed Application, 
within fifteen (15) days of completion of the System Impact Study the 
Eligible Customer must execute a Service Agreement or request service 
without an executed Service Agreement pursuant to Section 29.1, or the 
Application shall be deemed terminated and withdrawn.
32.4  Facilities Study Procedures: If a System Impact Study indicates 
that additions or upgrades to the Transmission System are needed to 
supply the Eligible Customer's service request, the Transmission 
Provider, within thirty (30) days of the completion of the System 
Impact Study, shall tender to the Eligible Customer a Facilities Study 
Agreement pursuant to which the Eligible Customer shall agree to 
advance funds to the Transmission Provider for performing the required 
Facilities Study. For a service request to remain a Completed 
Application, the Eligible Customer shall execute the Facilities Study 
Agreement and return it to the Transmission Provider within fifteen 
(15) days. If the Eligible Customer elects not to execute the 
Facilities Study Agreement, its Application shall be deemed withdrawn 
and its deposit shall be returned. Upon receipt of an executed 
Facilities Study Agreement, the Transmission Provider will use due 
diligence to complete the required Facilities Study within a sixty (60) 
day period. If the Transmission Provider is unable to complete the 
Facilities Study in the allotted time period, the Transmission Provider 
shall notify the Eligible Customer and provide an estimate of the time 
needed to reach a final determination along with an explanation of the 
reasons that additional time is required to complete the study. When 
completed, the Facilities Study will include a good faith estimate of 
(i) the cost of Direct Assignment Facilities to be charged to the 
Eligible Customer, (ii) the Eligible Customer's appropriate share of 
the cost of any required Network Upgrades, and (iii) the time required 
to complete such construction and initiate the requested service. The 
Eligible Customer shall advance funds to the Transmission Provider for 
the construction of new facilities and such advance and construction 
shall be provided for in a separate agreement. If the construction of 
new facilities requires the expenditure of Transmission Provider funds, 
such construction shall be contingent upon the availability of 
appropriated funds. The Eligible Customer shall have thirty (30) days 
to execute a construction agreement and a Service Agreement and provide 
the advance payment or request service without an executed Service 
Agreement pursuant to Section 29.1 and provide the required letter of 
credit or other form of security or the request no longer will be a 
Completed Application and shall be deemed terminated and withdrawn.

33  Load Shedding and Curtailments

33.1  Procedures: Prior to the Service Commencement Date, the 
Transmission Provider and the Network Customer shall establish Load 
Shedding and Curtailment procedures pursuant to the Network Operating 
Agreement with the objective of responding to contingencies on the 
Transmission System. The Parties will implement such programs during 
any period when the Transmission Provider determines that a system 
contingency exists and such procedures are necessary to alleviate such 
contingency. The Transmission Provider will notify all affected Network 
Customers in a timely manner of any scheduled Curtailment.
33.2  Transmission Constraints: During any period when the Transmission 
Provider determines that a transmission constraint exists on the 
Transmission System, and such constraint may impair the reliability of 
the Transmission Provider's system, the Transmission Provider will take 
whatever actions, consistent with Good Utility Practice, that are 
reasonably necessary to maintain the reliability of the Transmission 
Provider's system. To the extent the Transmission Provider determines

[[Page 50596]]

that the reliability of the Transmission System can be maintained by 
redispatching resources, the Transmission Provider will initiate 
procedures pursuant to the Network Operating Agreement to redispatch 
all Network Resources and the Transmission Provider's own resources on 
a least-cost basis without regard to the ownership of such resources. 
Any redispatch under this section may not unduly discriminate between 
the Transmission Provider's use of the Transmission System on behalf of 
its Native Load Customers and any Network Customer's use of the 
Transmission System to serve its designated Network Load.
33.3  Cost Responsibility for Relieving Transmission Constraints: 
Whenever the Transmission Provider implements least-cost redispatch 
procedures in response to a transmission constraint, the Transmission 
Provider and Network Customers will each bear a proportionate share of 
the total redispatch cost based on their respective Load Ratio Shares.
33.4  Curtailments of Scheduled Deliveries: If a transmission 
constraint on the Transmission Provider's Transmission System cannot be 
relieved through the implementation of least-cost redispatch procedures 
and the Transmission Provider determines that it is necessary to 
Curtail scheduled deliveries, the Parties shall Curtail such schedules 
in accordance with the Network Operating Agreement.
33.5  Allocation of Curtailments: The Transmission Provider shall, on a 
non-discriminatory basis, Curtail the transaction(s) that effectively 
relieve the constraint. However, to the extent practicable and 
consistent with Good Utility Practice, any Curtailment will be shared 
by the Transmission Provider and Network Customer in proportion to 
their respective Load Ratio Shares. The Transmission Provider shall not 
direct the Network Customer to Curtail schedules to an extent greater 
than the Transmission Provider would Curtail the Transmission 
Provider's schedules under similar circumstances.
33.6  Load Shedding: To the extent that a system contingency exists on 
the Transmission Provider's Transmission System and the Transmission 
Provider determines that it is necessary for the Transmission Provider 
and the Network Customer to shed load, the Parties shall shed load in 
accordance with previously established procedures under the Network 
Operating Agreement.
33.7  System Reliability: Notwithstanding any other provisions of this 
Tariff, the Transmission Provider reserves the right, consistent with 
Good Utility Practice and on a not unduly discriminatory basis, to 
Curtail Network Integration Transmission Service without liability on 
the Transmission Provider's part for the purpose of making necessary 
adjustments to, changes in, or repairs on its lines, substations and 
facilities, and in cases where the continuance of Network Integration 
Transmission Service would endanger persons or property. In the event 
of any adverse condition(s) or disturbance(s) on the Transmission 
Provider's Transmission System or on any other system(s) directly or 
indirectly interconnected with the Transmission Provider's Transmission 
System, the Transmission Provider, consistent with Good Utility 
Practice, also may Curtail Network Integration Transmission Service in 
order to (i) limit the extent or damage of the adverse condition(s) or 
disturbance(s), (ii) prevent damage to generating or transmission 
facilities, or (iii) expedite restoration of service. The Transmission 
Provider will give the Network Customer as much advance notice as is 
practicable in the event of such Curtailment. Any Curtailment of 
Network Integration Transmission Service will be not unduly 
discriminatory relative to the Transmission Provider's use of the 
Transmission System on behalf of its Native Load Customers. The 
Transmission Provider shall specify the rate treatment and all related 
terms and conditions applicable in the event that the Network Customer 
fails to respond to established Load Shedding and Curtailment 
procedures.

34  Rates and Charges

    The Network Customer shall pay the Transmission Provider for any 
Direct Assignment Facilities, Ancillary Services, and applicable study 
costs, consistent with Federal policy, along with the following:

34.1  Monthly Demand Charge: The Network Customer shall pay a monthly 
Demand Charge, which shall be determined by multiplying its Load Ratio 
Share times one twelfth (\1/12\) of the Transmission Provider's Annual 
Transmission Revenue Requirement specified in Schedule H.
34.2  Determination of Network Customer's Monthly Network Load: The 
Network Customer's monthly Network Load is its hourly load (including 
its designated Network Load not physically interconnected with the 
Transmission Provider under Section 31.3) coincident with the 
Transmission Provider's Monthly Transmission System Peak.
34.3  Determination of Transmission Provider's Monthly Transmission 
System Load: The Transmission Provider's monthly Transmission System 
load is the Transmission Provider's Monthly Transmission System Peak 
minus the coincident peak usage of all Firm Point-To-Point Transmission 
Service customers pursuant to Part II of this Tariff plus the Reserved 
Capacity of all Firm Point-To-Point Transmission Service customers.
34.4  Redispatch Charge: The Network Customer shall pay a Load Ratio 
Share of any redispatch costs allocated between the Network Customer 
and the Transmission Provider pursuant to Section 33. To the extent 
that the Transmission Provider incurs an obligation to the Network 
Customer for redispatch costs in accordance with Section 33, such 
amounts shall be credited against the Network Customer's bill for the 
applicable month.
34.5  Stranded Cost Recovery: The Transmission Provider may seek to 
recover stranded costs from the Network Customer in a manner consistent 
with applicable Federal law and regulations.

35  Operating Arrangements

35.1  Operation under The Network Operating Agreement: The Network 
Customer shall plan, construct, operate and maintain its facilities in 
accordance with Good Utility Practice and in conformance with the 
Network Operating Agreement.
35.2  Network Operating Agreement: The terms and conditions under which 
the Network Customer shall operate its facilities and the technical and 
operational matters associated with the implementation of Part III of 
the Tariff shall be specified in the Network Operating Agreement. The 
Network Operating Agreement shall provide for the Parties to (i) 
operate and maintain equipment necessary for integrating the Network 
Customer within the Transmission Provider's Transmission System 
(including, but not limited to, remote terminal units, metering, 
communications equipment and relaying equipment), (ii) transfer data 
between the Transmission Provider and the Network Customer (including, 
but not limited to, heat rates and operational characteristics of 
Network Resources, generation

[[Page 50597]]

schedules for units outside the Transmission Provider's Transmission 
System, interchange schedules, unit outputs for redispatch required 
under Section 33, voltage schedules, loss factors and other real time 
data), (iii) use software programs required for data links and 
constraint dispatching, (iv) exchange data on forecasted loads and 
resources necessary for long-term planning, and (v) address any other 
technical and operational considerations required for implementation of 
Part III of the Tariff, including scheduling protocols. The Network 
Operating Agreement will recognize that the Network Customer shall 
either (i) operate as a Control Area under applicable guidelines of the 
North American Electric Reliability Council (NERC) and the applicable 
regional reliability council, (ii) satisfy its Control Area 
requirements, including all necessary Ancillary Services, by 
contracting with the Transmission Provider, or (iii) satisfy its 
Control Area requirements, including all necessary Ancillary Services, 
by contracting with another entity, consistent with Good Utility 
Practice, which satisfies NERC and the applicable regional reliability 
council requirements. The Transmission Provider shall not unreasonably 
refuse to accept contractual arrangements with another entity for 
Ancillary Services. The Network Operating Agreement is included in 
Attachment G.
35.3  Network Operating Committee: A Network Operating Committee 
(Committee) shall be established to coordinate operating criteria for 
the Parties' respective responsibilities under the Network Operating 
Agreement. Each Network Customer shall be entitled to have at least one 
representative on the Committee. The Committee shall meet from time to 
time as need requires, but no less than once each calendar year.

Schedule 1

Scheduling, System Control and Dispatch Service

    This service is required to schedule the movement of power through, 
out of, within, or into a Control Area. This service can be provided 
only by the operator of the Control Area in which the transmission 
facilities used for transmission service are located. Scheduling, 
System Control and Dispatch Service is provided directly by the 
Transmission Provider if the Transmission Provider is the Control Area 
Operator or indirectly by the Transmission Provider making arrangements 
with the Control Area operator that performs this service for the 
Transmission Provider's Transmission System. The Transmission Customer 
must purchase this service from the Transmission Provider or the 
Control Area operator. The charges for Scheduling, System Control and 
Dispatch Service are to be based on the rates referred to below. To the 
extent the Control Area operator performs this service for the 
Transmission Provider, charges to the Transmission Customer are to 
reflect only a pass-through of the costs charged to the Transmission 
Provider by that Control Area operator.
    The Transmission System specific charges for Scheduling, System 
Control and Dispatch Service are set forth in the appropriate rate 
schedule attached to and made part of the applicable Service Agreement. 
The rates or rate methodology used to calculate the charges for service 
under this schedule were promulgated and may be modified pursuant to 
applicable Federal laws, regulations and policies.
    The Transmission Provider may modify the charges for Scheduling, 
System Control and Dispatch Service upon written notice to the 
Transmission Customer. Any change to the charges to the Transmission 
Customer for Scheduling, System Control and Dispatch Service shall be 
as set forth in a subsequent rate schedule promulgated pursuant to 
applicable Federal laws, regulations and policies and attached to and 
made part of the applicable Service Agreement. The Transmission 
Provider shall charge the Transmission Customer in accordance with the 
rate then in effect.

Schedule 2

Reactive Supply and Voltage Control From Generation Sources Service

    In order to maintain transmission voltages on the Transmission 
Provider's transmission facilities within acceptable limits, generation 
facilities under the control of the Control Area operator are operated 
to produce or absorb reactive power. Thus, Reactive Supply and Voltage 
Control from Generation Sources Service must be provided for each 
transaction on the Transmission Provider's transmission facilities. The 
amount of Reactive Supply and Voltage Control from Generation Sources 
Service that must be supplied with respect to the Transmission 
Customer's transaction will be determined based on the reactive power 
support necessary to maintain transmission voltages within limits that 
are generally accepted in the region and consistently adhered to by the 
Transmission Provider.
    Reactive Supply and Voltage Control from Generation Sources Service 
can be provided directly by the Transmission Provider if the 
Transmission Provider is the Control Area operator or indirectly by the 
Transmission Provider making arrangements with the Control Area 
operator that performs this service for the Transmission Provider's 
Transmission System. The Transmission Customer must purchase this 
service from the Transmission Provider or the Control Area operator. 
The charges for such service will be based upon the rates referred to 
below. To the extent the Control Area operator performs this service 
for the Transmission Provider, charges to the Transmission Customer are 
to reflect only a pass-through of the costs charged to the Transmission 
Provider by the Control Area Operator.
    The Transmission System specific charges for Reactive Supply and 
Voltage Control from Generation Sources Service are set forth in the 
appropriate rate schedule attached to and made part of the applicable 
Service Agreement. The rates or rate methodology used to calculate the 
charges for service under this schedule were promulgated and may be 
modified pursuant to applicable Federal laws, regulations and policies.
    The Transmission Provider may modify the charges for Reactive 
Supply and Voltage Control from Generation Sources Service upon written 
notice to the Transmission Customer. Any change to the charges to the 
Transmission Customer for Reactive Supply and Voltage Control from 
Generation Sources Service shall be as set forth in a subsequent rate 
schedule promulgated pursuant to applicable Federal laws, regulations 
and policies and attached to and made part of the applicable Service 
Agreement. The Transmission Provider shall charge the Transmission 
Customer in accordance with the rate then in effect.

Schedule 3

Regulation and Frequency Response Service

    Regulation and Frequency Response Service is necessary to provide 
for the continuous balancing of resources, generation and interchange, 
with load and for maintaining scheduled interconnection frequency at 
sixty cycles per second (60 Hz). Regulation and Frequency Response 
Service is accomplished by committing on-line generation whose output 
is raised or lowered, predominantly through the use of automatic 
generating control equipment, as necessary to follow the

[[Page 50598]]

moment-by-moment changes in load. The obligation to maintain this 
balance between resources and load lies with the Transmission Provider 
(or the Control Area operator that performs this function for the 
Transmission Provider). The Transmission Provider must offer this 
service when the transmission service is used to serve load within its 
Control Area. The Transmission Customer must either purchase this 
service from the Transmission Provider or make alternative comparable 
arrangements to satisfy its Regulation and Frequency Response Service 
obligation. The charges for Regulation and Frequency Response Service 
are referred to below. The amount of Regulation and Frequency Response 
Service will be set forth in the Service Agreement. To the extent the 
Control Area operator performs this service for the Transmission 
Provider, charges to the Transmission Customer are to reflect only a 
pass-through of the costs charged to the Transmission Provider by that 
Control Area operator.
    The Transmission System specific charges for Regulation and 
Frequency Response Service are set forth in the appropriate rate 
schedule attached to and made part of the applicable Service Agreement. 
The rates or rate methodology used to calculate the charges for service 
under this schedule were promulgated and may be modified pursuant to 
applicable Federal laws, regulations and policies.
    The Transmission Provider may modify the charges for Regulation and 
Frequency Response Service upon written notice to the Transmission 
Customer. Any change to the charges to the Transmission Customer for 
Regulation and Frequency Response Service shall be as set forth in a 
subsequent rate schedule promulgated pursuant to applicable Federal 
laws, regulations and policies and attached to and made part of the 
applicable Service Agreement. The Transmission Provider shall charge 
the Transmission Customer in accordance with the rate then in effect.

Schedule 4

Energy Imbalance Service

    Energy Imbalance Service is provided when a difference occurs 
between the scheduled and the actual delivery of energy to a load 
located within a Control Area over a single hour. The Transmission 
Provider must offer this service when the transmission service is used 
to serve load within its Control Area. The Transmission Customer must 
either obtain this service from the Transmission Provider or make 
alternative comparable arrangements to satisfy its Energy Imbalance 
Service obligation. To the extent the Control Area operator performs 
this service for the Transmission Provider, charges to the Transmission 
Customer are to reflect only a pass-through of the costs charged to the 
Transmission Provider by that Control Area operator.
    The Transmission Provider shall establish a deviation band of +/
-1.5 percent (with a minimum of 2 MW) of the scheduled transaction to 
be applied hourly to any energy imbalance that occurs as a result of 
the Transmission Customer's scheduled transaction(s). Parties should 
attempt to eliminate energy imbalances within the limits of the 
deviation band within thirty (30) days or within such other reasonable 
period of time as is generally accepted in the region and consistently 
adhered to by the Transmission Provider. If an energy imbalance is not 
corrected within thirty (30) days or a reasonable period of time that 
is generally accepted in the region and consistently adhered to by the 
Transmission Provider, the Transmission Customer will compensate the 
Transmission Provider for such service. Energy imbalances outside the 
deviation band will be subject to charges to be specified by the 
Transmission Provider. Compensation for Energy Imbalance Service will 
be as set forth below.
    The Transmission System specific compensation for Energy Imbalance 
Service are set forth in the appropriate rate schedule attached to and 
made part of the applicable Service Agreement. The rates or rate 
methodology used to calculate the charges for service under this 
schedule were promulgated and may be modified pursuant to applicable 
Federal laws, regulations and policies.
    The Transmission Provider may modify the compensation for Energy 
Imbalance Service upon written notice to the Transmission Customer. Any 
change to the compensation to the Transmission Customer for Energy 
Imbalance Service shall be as set forth in a subsequent rate schedule 
promulgated pursuant to applicable Federal laws, regulations and 
policies and attached to and made part of the applicable Service 
Agreement. The Transmission Provider shall charge the Transmission 
Customer in accordance with the rate then in effect.

Schedule 5

Operating Reserve--Spinning Reserve Service

    Spinning Reserve Service is needed to serve load immediately in the 
event of a system contingency. Spinning Reserve Service may be provided 
by generating units that are on-line and loaded at less than maximum 
output. The Transmission Provider must offer this service when the 
transmission service is used to serve load within its Control Area. The 
Transmission Customer must either purchase this service from the 
Transmission Provider or make alternative comparable arrangements to 
satisfy its Spinning Reserve Service obligation. The charges for 
Spinning Reserve Service are referred to below. The amount of Spinning 
Reserve Service will be set forth in the Service Agreement. To the 
extent the Control Area operator performs this service for the 
Transmission Provider, charges to the Transmission Customer are to 
reflect only a pass-through of the costs charged to the Transmission 
Provider by that Control Area operator.
    The Transmission System specific charges for Operating Reserve--
Spinning Reserve Service are set forth in the appropriate rate schedule 
attached to and made part of the applicable Service Agreement. The 
rates or rate methodology used to calculate the charges for service 
under this schedule were promulgated and may be modified pursuant to 
applicable Federal laws, regulations and policies.
    The Transmission Provider may modify the charges for Operating 
Reserve--Spinning Reserve Service upon written notice to the 
Transmission Customer. Any change to the charges to the Transmission 
Customer for Operating Reserve--Spinning Reserve Service shall be as 
set forth in a subsequent rate schedule promulgated pursuant to 
applicable Federal laws, regulations and policies and attached to and 
made part of the applicable Service Agreement. The Transmission 
Provider shall charge the Transmission Customer in accordance with the 
rate then in effect.

Schedule 6

Operating Reserve--Supplemental Reserve Service

    Supplemental Reserve Service is needed to serve load in the event 
of a system contingency; however, it is not available immediately to 
serve load but rather within a short period of time. Supplemental 
Reserve Service may be provided by generating units that are on-line 
but unloaded, by quick-start generation or by interruptible load. The 
Transmission Provider must offer this service when the transmission 
service is used to serve load within its Control Area. The Transmission 
Customer must either purchase this service from the Transmission 
Provider or make

[[Page 50599]]

alternative comparable arrangements to satisfy its Supplemental Reserve 
Service obligation. The charges for Supplemental Reserve Service are 
referred to below. The amount of Supplemental Reserve Service will be 
set forth in the Service Agreement. To the extent the Control Area 
operator performs this service for the Transmission Provider, charges 
to the Transmission Customer are to reflect only a pass-through of the 
costs charged to the Transmission Provider by that Control Area 
operator.
    The Transmission System specific charges for Operating Reserve--
Supplemental Reserve Service are set forth in the appropriate rate 
schedule attached to and made part of the applicable Service Agreement. 
The rates or rate methodology used to calculate the charges for service 
under this schedule were promulgated and may be modified pursuant to 
applicable Federal laws, regulations and policies.
    The Transmission Provider may modify the charges for Operating 
Reserve--Supplemental Reserve Service upon written notice to the 
Transmission Customer. Any change to the charges to the Transmission 
Customer for Operating Reserve--Supplemental Reserve Service shall be 
as set forth in a subsequent rate schedule promulgated pursuant to 
applicable Federal laws, regulations and policies and attached to and 
made part of the applicable Service Agreement. The Transmission 
Provider shall charge the Transmission Customer in accordance with the 
rate then in effect.

Schedule 7

Long-Term Firm and Short-Term Firm Point-To-Point Transmission Service

    The Transmission Customer shall compensate the Transmission 
Provider each month for Reserved Capacity pursuant to the Transmission 
System specific Firm Point-to-Point Transmission Service Rate Schedule 
attached to and made a part of the applicable Service Agreement. The 
rates or rate methodology used to calculate the charges for service 
under this schedule were promulgated and may be modified pursuant to 
applicable Federal laws, regulations and policies.
    The Transmission Provider may modify the charges for Firm Point-to-
Point Transmission Service upon written notice to the Transmission 
Customer. Any change to the charges to the Transmission Customer for 
Firm Point-to-Point Transmission Service shall be as set forth in a 
subsequent rate schedule promulgated pursuant to applicable Federal 
laws, regulations and policies and attached to and made part of the 
applicable Service Agreement. The Transmission Provider shall charge 
the Transmission Customer in accordance with the rate then in effect.
    Discounts: Three principal requirements apply to discounts for 
transmission service as follows: (1) Any offer of a discount made by 
the Transmission Provider must be announced to all Eligible Customers 
solely by posting on the OASIS, (2) any customer-initiated requests for 
discounts, including requests for use by one's wholesale merchant or an 
affiliate's use, must occur solely by posting on the OASIS, and (3) 
once a discount is negotiated, details must be immediately posted on 
the OASIS. For any discount agreed upon for service on a path, from 
Point(s) of Receipt to Point(s) of Delivery, the Transmission Provider 
must offer the same discounted transmission service rate for the same 
time period to all Eligible Customers on all unconstrained transmission 
paths that go to the same point(s) of delivery on the Transmission 
System.

Schedule 8

Non-Firm Point-To-Point Transmission Service

    The Transmission Customer shall compensate the Transmission 
Provider for Non-Firm Point-to-Point Transmission Service pursuant to 
the Transmission System specific Non-Firm Point-to-Point Transmission 
Service Rate Schedule attached to and made a part of the applicable 
Service Agreement. The rates or rate methodology used to calculate the 
charges for service under this schedule were promulgated and may be 
modified pursuant to applicable Federal laws, regulations and policies.
    The Transmission Provider may modify the charges for Firm Point-to-
Point Transmission Service upon written notice to the Transmission 
Customer. Any change to the charges to the Transmission Customer for 
Firm Point-to-Point Transmission Service shall be as set forth in a 
subsequent rate schedule promulgated pursuant to applicable Federal 
laws, regulations and policies and attached to and made part of the 
applicable Service Agreement. The Transmission Provider shall charge 
the Transmission Customer in accordance with the rate then in effect.
    Discounts: Three principal requirements apply to discounts for 
transmission service as follows: (1) Any offer of a discount made by 
the Transmission Provider must be announced to all Eligible Customers 
solely by posting on the OASIS, (2) any customer-initiated requests for 
discounts, including requests for use by one's wholesale merchant or an 
affiliate's use, must occur solely by posting on the OASIS, and (3) 
once a discount is negotiated, details must be immediately posted on 
the OASIS. For any discount agreed upon for service on a path, from 
Point(s) of Receipt to Point(s) of Delivery, the Transmission Provider 
must offer the same discounted transmission service rate for the same 
time period to all Eligible Customers on all unconstrained transmission 
paths that go to the same point(s) of delivery on the Transmission 
System.

Attachment A

Form of Service Agreement for Firm Point-To-Point Transmission Service

1.0   This Service Agreement, dated as of __________________, is 
entered into, by and between the (Region) of Western Area Power 
Administration (Transmission Provider), and ____________ (Transmission 
Customer). The Transmission Provider may revise charges or losses for 
Firm Point-to-Point Transmission Service provided under this Service 
Agreement pursuant to applicable Federal Laws, regulations and policies 
upon written notice to the Transmission Customer.
2.0  The Transmission Customer has been determined by the Transmission 
Provider to have a Completed Application for Firm Point-To-Point 
Transmission Service under the Tariff.
3.0  The Transmission Customer has provided to the Transmission 
Provider a nonrefundable Application processing fee in accordance with 
the provisions of Section 17.3 of the Tariff.
4.0  Service under this agreement shall commence on the later of (1) 
the requested Service Commencement Date, or (2) the date on which 
construction of any Direct Assignment Facilities and/or Network 
Upgrades are completed, or (3) such other date as is mutually agreed. 
Service under this agreement shall terminate on ____________.
5.0  The Transmission Provider agrees to provide and the Transmission 
Customer agrees to take and pay for Firm Point-To-Point Transmission 
Service in accordance with the provisions of Part II of the Tariff, and 
this Service Agreement.
6.0  Any notice or request made to or by either Party regarding this 
Service Agreement shall be made to the representative of the other 
Party as indicated below.


[[Page 50600]]


Transmission Provider:

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

Transmission Customer:

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

7.0  The Tariff and the ``Specifications For Long-Term Firm Point-To-
Point'' as presently constituted or as they may be revised or 
superseded are incorporated herein and made a part hereof.

    In witness whereof, the Parties have caused this Service Agreement 
to be executed by their respective authorized officials.

Western Area Power Administration

By:--------------------------------------------------------------------

Title:-----------------------------------------------------------------

Address:---------------------------------------------------------------

----------------------------------------------------------------------

Date:------------------------------------------------------------------

(Transmission Customer)

By:--------------------------------------------------------------------

Title:-----------------------------------------------------------------

Address:---------------------------------------------------------------

----------------------------------------------------------------------

Date:------------------------------------------------------------------

Specifications for Long-Term Firm Point-To-Point Transmission 
Service

    For purposes of this Service Agreement, the Transmission 
Provider's Transmission System consists of the facilities of the 
(Region) as described in Attachment K.

1.0  Term of Transaction:----------------------------------------------
  Start Date:----------------------------------------------------------
  Termination Date:----------------------------------------------------

2.0  Description of capacity and energy to be transmitted by 
Transmission Provider including the electric Control Area in which 
the transaction originates.

----------------------------------------------------------------------
3.0  Point(s) of Receipt:----------------------------------------------
  Delivering Party:----------------------------------------------------
  Capacity Reservation:------------------------------------------------
4.0  Point(s) of Delivery:---------------------------------------------
  Receiving Party:-----------------------------------------------------
  Capacity Reservation:------------------------------------------------
5.0  The Maximum amount of capacity and energy to be transmitted 
(Reserved Capacity) is : ____
6.0  Designation of party(ies) subject to reciprocal service 
obligation:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
7.0  Name of the Control Area from which capacity and energy will be 
delivered to the Transmission Provider for Transmission Service:
----------------------------------------------------------------------
Name of the Control Area to which capacity and energy will be 
delivered by the Transmission Provider:
----------------------------------------------------------------------
Name(s) of any Intervening Systems providing transmission service:
----------------------------------------------------------------------
----------------------------------------------------------------------
8.0  Service under this Agreement may be subject to some combination 
of the charges detailed below. The appropriate charges for 
individual transactions will be determined in accordance with the 
terms and conditions of the Tariff.
8.1  Transmission Charge:----------------------------------------------
8.2  System Impact and/or Facilities Study Charge(s):
  --------------------------------------------------------------------
  --------------------------------------------------------------------
8.3  Direct Assignment Facilities Charge:
  --------------------------------------------------------------------
8.4  Ancillary Services Charges:
  --------------------------------------------------------------------
  --------------------------------------------------------------------
  --------------------------------------------------------------------
  --------------------------------------------------------------------
8.5  Redispatch Charges:

    To be filled in if applicable.
8.6  Network Upgrade Charges:
    To be filled in if applicable
9.0  Power Factor: The Transmission Customer will be required to 
maintain a power factor between ____-percent lagging and ____-
percent leading for all deliveries of capacity and energy to and 
from the Transmission Provider's Transmission System.
10.0  Transmission Losses
10.1  Loss Factors:
10.1.1  If, based on operating experience and technical studies, the 
Transmission Provider determines that any of the transmission loss 
factors on the Transmission Provider's Transmission System differs 
from the loss factors set forth in this Service Agreement, the 
Transmission Provider reserves the right to update this Service 
Agreement to reflect such revised loss factors.
10.1.2  Transmission Provider Transmission Loss Factor: Transmission 
Provider transmission losses shall be ____% and shall be assessed on 
the power scheduled and transmitted to a point of delivery on the 
Transmission Provider's Transmission System.
11.0  Ancillary Services
11.1  Provided by Transmission Provider
    11.1.1  Scheduling, System Control, and Dispatch Service
    11.1.2  Reactive Supply and Voltage Control from Generation 
Sources Service
    11.2  Provided by Transmission Customer
    11.2.1  (To be filled in if applicable)
    11.2.2
    11.3  Provided by ________
    11.3.1  (To be filled in if applicable)
    11.3.2
12.0  Net Billing and Bill Crediting Option: The Parties have agreed 
to implement [Net Billing, Bill Crediting, or both] as set forth in 
Attachment J.
13.0  Charges for Service: Charges for Firm Point-to-Point 
Transmission Service and associated Ancillary Services shall be 
calculated in accordance with [Rate Schedules] attached hereto and 
made a part of this Service Agreement. The rates or rate methodology 
used to calculate the charges for service under that schedule were 
promulgated and may be modified pursuant to applicable Federal laws, 
regulations and policies.

Attachment B

Form Of Service Agreement For Non-Firm Point-To-Point Transmission 
Service

1.0  This Service Agreement, dated as of ________________, is entered 
into, by and between the (Region) of Western Area Power Administration 
(Transmission Provider), and ________________ (Transmission Customer). 
The Transmission Provider may revise charges or losses for Non-Firm 
Point-to-Point Transmission Service provided under this Service 
Agreement pursuant to applicable Federal laws, regulations and policies 
upon written notice to the Transmission Customer.
2.0  The Transmission Customer has been determined by the Transmission 
Provider to be a Transmission Customer under Part II of the Tariff and 
has filed a Completed Application for Non-Firm Point-To-Point 
Transmission Service in accordance with Section 18.2 of the Tariff.
3.0  Service under this Service Agreement shall be provided by the 
Transmission Provider upon request by an authorized representative of 
the Transmission Customer. For purposes of this Service Agreement, the 
Transmission Provider's Transmission System consists of the facilities 
of the (Region) as described in Attachment K.
4.0  The Transmission Customer agrees to supply information the 
Transmission Provider deems reasonably necessary in accordance with 
Good Utility Practice in order for it to provide the requested service.
5.0  The Transmission Provider agrees to provide and the Transmission 
Customer agrees to take and pay for Non-Firm Point-To-Point 
Transmission Service in accordance with the provisions of Part II of 
the Tariff, and this Service Agreement.
6.0  Any notice or request made to or by either Party regarding this 
Service Agreement shall be made to the representative of the other 
Party as indicated below.

Transmission Provider:

----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------

Transmission Customer:

----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------

7.0  The Tariff as presently constituted or as it may be revised or 
superseded

[[Page 50601]]

is incorporated herein and made a part hereof.
8.0  Power Factor: The Transmission Customer will be required to 
maintain a power factor between ____-percent lagging and ____-percent 
leading for all deliveries of capacity and energy to and from the 
Transmission Provider's Transmission System.
9.0  Transmission Losses:
9.1  Loss Factors:
9.1.1  If, based on operating experience and technical studies, the 
Transmission Provider determines that any of the transmission loss 
factors on the Transmission Provider's Transmission Systems differ from 
the loss factors set forth in this Service Agreement, the Transmission 
Provider reserves the right to update this Service Agreement to reflect 
such revised loss factors.
9.1.2  Transmission Provider Transmission Loss Factor: Transmission 
Provider transmission losses shall be ____% and shall be assessed on 
the power scheduled and transmitted to a point of delivery on the 
Transmission Provider's Transmission System.
10.0  Ancillary Services
10.1  Provided by Transmission Provider
    10.1.1  Scheduling, System Control, and Dispatch Service
    10.1.2  Reactive Supply and Voltage Control from Generation Sources 
Service
10.2  Provided by Transmission Customer
    10.2.1  To be filled in if appropriate
    10.2.2
10.3  Provided by ________
    10.3.1  To be filled in if appropriate
    10.3.2
11.0  Net Billing and Bill Crediting Option: The Parties have agreed to 
implement [Net Billing, Bill Crediting, or both] as set forth in 
Attachment J.
12.0  Charges for Service: Charges for Non-Firm Point-to-Point 
Transmission Service and associated Ancillary Services shall be 
calculated in accordance with [Rate Schedules] attached hereto and made 
a part of this Service Agreement. The rates or rate methodology used to 
calculate the charges for service under that schedule were promulgated 
and may be modified pursuant to applicable Federal laws, regulations 
and policies.

    IN WITNESS WHEREOF, the Parties have caused this Service Agreement 
to be executed by their respective authorized officials.

WESTERN AREA POWER ADMINISTRATION

By:-------------------------------------------------------------------
Title:----------------------------------------------------------------
Address:--------------------------------------------------------------
Date:-----------------------------------------------------------------

(TRANSMISSION CUSTOMER)

By:-------------------------------------------------------------------
Title:----------------------------------------------------------------
Address:--------------------------------------------------------------
Date:-----------------------------------------------------------------

Attachment C

Methodology To Assess Available Transmission Capability

    The Transmission Provider will compute the transmission transfer 
capability available on a point-to-point basis from the Delivering 
Party to the Receiving Party using Good Utility Practice and the 
engineering and operating principles, standards, guidelines and 
criteria of the Transmission Provider, the applicable Regional 
Reliability Council, any entity of which the Transmission Provider is a 
member and is approved by the Commission to promulgate or apply 
regional or national reliability planning standards (such as a regional 
transmission group, RTG), or any similar organization that may exist in 
the future of which the Transmission Provider is then a member. 
Principal items used to determine maximum transmission transfer 
capability available shall include reliability, transmission element 
loading, system contingency performance, voltage levels, and stability. 
In determining Available Transmission Capability, the Transmission 
Provider will reserve sufficient transmission capability to meet its 
current and forecasted power service obligations, current and 
forecasted Network Customer loads, and existing transmission service 
obligations.

Attachment D

Methodology For Completing a System Impact Study

    The Transmission Provider will assess the capability of the 
Transmission System to provide the service requested using the criteria 
and process for this assessment as detailed in Sections 4 and 5 of the 
Transmission Provider's annual FERC Form 715 submittal in those 
instances where the Transmission Provider is a member of the Western 
Systems Coordinating Council. (CRSP, DSW, RMR, and SNR) The 
Transmission Provider will use the Mid-Continent Area Power Pool (MAPP) 
System Impact Study Methodology when the Transmission Provider is a 
member of MAPP. (UGPR)

Attachment E

Index of Point-To-Point Transmission Service Customers

------------------------------------------------------------------------
                 Customer                     Date of service agreement 
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

Attachment F

Service Agreement For Network Integration Transmission Service

1.0  This Service Agreement, dated as of ________________, is entered 
into, by and between the ( Region) of Western Area Power Administration 
(Transmission Provider), and ________________ (Transmission Customer).
2.0  The Transmission Customer has been determined by the Transmission 
Provider to have a Completed Application for Network Integration 
Transmission Service under the Tariff.
3.0  Service under this Service Agreement shall commence on the later 
of (1) ________________, or (2) the date on which construction of any 
Direct Assignment Facilities and/or Network Upgrades are completed, or 
(3) such other date as is mutually agreed. Service under this Service 
Agreement shall terminate on ________________.
4.0  The Transmission Provider agrees to provide and the Transmission 
Customer agrees to take and pay for Network Integration Transmission 
Service in accordance with the provisions of Part III of the Tariff, 
and this Service Agreement.
5.0  Any notice or request made to or by either Party regarding this 
Service Agreement shall be made to the representative of the other 
Party as indicated below.

Transmission Provider:

----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------

Transmission Customer:

----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------

6.0  The Tariff and the ``Specifications for Network Integration 
Transmission Service'' as presently constituted or as they may be 
revised or superseded are incorporated herein and made a part hereof.

    IN WITNESS WHEREOF, the Parties have caused this Service Agreement 
to be executed by their respective authorized officials.

[[Page 50602]]

WESTERN AREA POWER ADMINISTRATION

By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------

(TRANSMISSION CUSTOMER)

By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------

Specifications for Network Integration Transmission Service

    For purposes of this Service Agreement, the Transmission Provider's 
Transmission System consists of the facilities of the (Region) as 
described in Attachment K.

1.0  The Transmission Provider will provide Network Integration 
Transmission Service over the Transmission Provider's Transmission 
System for the delivery of capacity and energy from the Network 
Customer's designated Network Resources to the Network Customer's 
designated Network Load. The Transmission Provider will also provide 
non-firm transmission service from non-designated Network Resources 
under the terms of this Service Agreement. The loss factors associated 
with this Network Integration Transmission Service are set forth below. 
Such losses shall be applied and accounted for as set forth in Section 
4.
2.0  Designated Network Resources:

------------------------------------------------------------------------
Designated Network Resources &                                          
  Estimated Maximum Resource     Point of Receipt    Delivering Party & 
             (MW)                                         Voltage       
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

3.0  Designated Network Loads:

------------------------------------------------------------------------
   Designated Network Load &                                            
  Estimated Maximum Resource    Point of Delivery         Voltage       
             (MW)                                                       
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

4.0  Transmission Losses:
4.1  Loss Factors:
    4.1.1  If, based on operating experience and technical studies, the 
Transmission Provider determines that any of the transmission loss 
factors on the Transmission Provider's Transmission System differ from 
the loss factors set forth in this Service Agreement, the Transmission 
Provider reserves the right to update this Service Agreement to reflect 
such revised loss factors.
    4.1.2  Transmission Provider Transmission Loss Factor: For 
deliveries to the Network Customer Network Load, Transmission Provider 
transmission losses shall be--% and shall be assessed on the power 
scheduled and transmitted to a point of delivery on the Transmission 
Provider's Transmission System.
4.2  Transmission losses may be revised by written notice from the 
Transmission Provider to the Transmission Customer.
5.0  The Network Customer's transmission facilities that are integrated 
with the Transmission Provider's Transmission System will receive 
__________ credit. These facilities include the following:
    5.1  ____________
    5.2  ____________
6.0  Names of any intervening systems with whom the Network Customer 
has arranged for transmission service to the Transmission Provider's 
Transmission System.
    6.1  ____________
    6.2  ____________
7.0  Power Factor: The Transmission Customer will be required to 
maintain a power factor between__-percent lagging and__-percent leading 
for all deliveries of capacity and energy to and from the Transmission 
Provider's Transmission System.
8.0  Ancillary Services
     8.1  Provided by Transmission Provider
    8.1.1  Scheduling, System Control, and Dispatch Service
    8.1.2  Reactive Supply and Voltage Control from Generation Sources 
Service
    8.2  Provided by Transmission Customer
    8.2.1  (To be filled in if appropriate)
    8.2.2
    8.3  Provided by ________
    8.3.1  (To be filled in if appropriate)
    8.3.2
9.0  Net Billing and Bill Crediting Option: The Parties have agreed to 
implement [Net Billing, Bill Crediting, or both] as set forth in 
Attachment J.
10.0  Charges for Service: Charges for associated Ancillary Services 
shall be calculated in accordance with [Rate Schedule] attached hereto 
and made a part of this Service Agreement. The rates or rate 
methodology used to calculate the charges for service under that 
schedule were promulgated and may be modified pursuant to applicable 
Federal laws, regulations and policies.

Attachment G

Network Operating Agreement

    To be filed by the Transmission Provider at such time as the 
Transmission Provider has negotiated or

[[Page 50603]]

offered a Network Integration Transmission Service Agreement. The terms 
and conditions under which the Network Customer will be required to 
operate its facilities and the technical and operational matters 
associated with the implementation of Network Integration Transmission 
Service and this Service Agreement will be specified in a separate 
Network Operating Agreement.
    The Network Operating Agreement will include provisions addressing 
the following:

Authorized Representatives of the Parties
Network Operating Committee
Load Following
System Protection
Redispatch to Manage Transmission Constraints
Maintenance of Facilities
Load Shedding
Operation Impacts
Service Conditions
Data, Information and Reports
Metering
Communications
System Regulation and Operating Reserves
Assignment
Notices
Accounting for Transmission Losses

(Alternative language to be used only by UGPR) Network Integration 
Transmission provided by the Transmission Provider will be subject to 
all operating and scheduling procedures and protocols of the Mid-
Continent Area Power Pool (MAPP) as stated in the MAPP Restated 
Agreement and the MAPP Operating Handbook as existing and as may be 
amended, superseded or replaced. The Transmission Provider will 
therefore not enter into a separate Network Operating Agreement with 
each Network Customer.

Attachment H

Annual Transmission Revenue Requirement For Network Integration 
Transmission Service

1.0  The Annual Transmission Revenue Requirement for purposes of the 
Network Integration Transmission Service is to be set forth in a 
separate Rate Schedule.
2.0  The amount in 1 shall be effective until amended by the 
Transmission Provider or modified by the Commission pursuant to 
applicable Federal laws, regulations and policies, and may be revised 
upon written notice to the Transmission Customer.
3.0  The Transmission Provider will charge the Network Customer a 
charge equal to ten (10) times the highest charge incurred during the 
preceding twelve months for any use of the Transmission Provider's 
Transmission System not in compliance with the terms and conditions of 
Part III of this Tariff.

Attachment I

Index of Network Integration Transmission Service Customers

------------------------------------------------------------------------
              Customer                    Date of service agreement     
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

Attachment J

Provisions Specific To The Transmission Provider

1.0  Change of Rates

    Rates applicable under the Service Agreements shall be subject to 
change by Western in accordance with appropriate rate adjustment 
procedures. If at any time the United States promulgates a rate 
changing a rate then in effect under a Service Agreement, it will 
promptly notify the Transmission Customer thereof. Rates shall become 
effective as to the Service Agreements as of the effective date of such 
rate. The Transmission Customer, by written notice to the Transmission 
Provider within ninety (90) days after the effective date of a rate 
change, may elect to terminate the service billed by the Transmission 
Provider under the new rate. Said termination shall be effective on the 
last day of the billing period requested by the Transmission Customer 
not later than two (2) years after the effective date of the new rate. 
Service provided by the Transmission Provider shall be paid for at the 
new rate regardless of whether the Transmission Customer exercises the 
option to terminate service.

2.0  Contingent Upon Appropriations

    Where activities provided for in the Service Agreement extend 
beyond the current fiscal year, continued expenditures by the 
Transmission Provider are contingent upon Congress making necessary 
appropriations required for the continued performance of the 
Transmission Provider's obligations under the Service Agreement. In the 
event that such appropriation by Congress is not made, The Transmission 
Customer hereby releases the Transmission Provider from its obligations 
under the Service Agreement and from all liability due to the failure 
of Congress to make such appropriation.

3.0  Covenant Against Contingent Fees

    The Transmission Customer warrants that no person or selling agency 
has been employed or retained to solicit or secure the Service 
Agreement upon a contract or understanding for a commission, 
percentage, brokerage, or contingent fee, excepting bona fide employees 
or bona fide established commercial or selling agencies maintained by 
the Transmission Customer for the purpose of securing business. For 
breach or violation of this warranty, the Transmission Provider shall 
have the right to annul the Service Agreement without liability or in 
its discretion to deduct from the Service Agreement price or 
consideration the full amount of such commission, percentage, 
brokerage, or contingent fee.

4.0  Contract Work Hours and Safety Standards

    The Service Agreement, to the extent that it is of a character 
specified in Section 103 of the Contract Work Hours and Safety 
Standards Act (Act), 40 U.S.C. Sec. 329 (1986), is subject to the 
provisions of the Act, 40 U.S.C. Secs. 327-333 (1986), and to 
regulations promulgated by the Secretary of Labor pursuant to the Act.

5.0  Equal Opportunity Employment Practices

    Section 202 of Executive Order No. 11246, 43 Fed. Reg. 46501 
(1978), which provides, among other things, that the Transmission 
Customer will not discriminate against any employee or applicant for 
employment because of race, color, religion, sex, or national origin, 
is incorporated by reference in the Service Agreement.

6.0  Use of Convict Labor

    The Transmission Customer agrees not to employ any person 
undergoing sentence of imprisonment in performing the Service Agreement 
except as provided by 18 U.S.C. 4082(c)(2) and Executive Order 11755, 
December 29, 1973.

7.0  Independent System Operator

    The Parties understand that the Transmission Provider may join an 
Independent System Operator. An Independent System Operator (ISO) is 
defined as a Commission regulated control area operator of the ISO 
transmission grid. Its responsibilities include providing non-
discriminatory access, managing congestion, and maintaining the 
reliability and security of the grid. In the event the Transmission 
Provider either joins or is required to conform to protocols of the 
Independent System Operator, the

[[Page 50604]]

Parties agree that the Transmission Provider either may (1) modify the 
relevant provisions of the Tariff and the Service Agreement to conform 
them to the terms and conditions required by the Independent System 
Operator, or (2) terminate the Service Agreement by providing a one-
year written notice to the Transmission Customer.

8.0  Third Party Rights

    The Service Agreements shall not be construed to create rights in, 
or to grant remedies to, or delegate any duty, obligation, or 
undertaking established therein to any third party as a beneficiary to 
such Service Agreement.

9.0  Entire Agreement

    The Service Agreements, including the Tariff, together with the 
specifications under such Service Agreement and any completed 
scheduling forms shall constitute the entire understanding between the 
Transmission Provider and the Transmission Customer with respect to 
Transmission Service thereunder.

10.0  Power Supply Obligations

    The Transmission Provider shall not be obligated to supply capacity 
and energy from its own sources or from its purchases from other 
neighboring systems during Interruptions or Curtailments in the 
delivery by the Transmission Provider or delivery to the Transmission 
Provider by the Delivering Party of capacity and energy for 
Transmission Service hereunder, and nothing in the Service Agreement or 
in the Transmission Customer's agreements with others shall have the 
effect of making, nor shall anything in the Service Agreement or said 
agreements with others be construed to require the Transmission 
Provider to take any action which would make the Transmission Provider, 
directly or indirectly, a source of power supply to the Transmission 
Customer, to any Delivering Party or Receiving Party, or to any 
ultimate recipient other than through the provision of Operating 
Reserve Service and emergency power.

11.0  Federal Law

    Performance under the Tariff and Service Agreement shall be 
governed by applicable Federal law.

12.0  Continuing Obligations

    The applicable provisions of the Service Agreement will continue in 
effect after termination of the Service Agreement to the extent 
necessary to provide for final billing, billing adjustments and 
payments, and with respect to liability and indemnification from acts 
or events that occurred while this Service Agreement was in effect.

13.0  Net Billing

    Payments due the Transmission Provider by a Transmission Customer 
may, at the Transmission Provider's discretion, be offset against 
payments due the Transmission Customer by the Transmission Provider for 
the use of transmission facilities, operation and maintenance of 
electric facilities, and other services. Net billing for the sale or 
exchange of electric capacity and energy will be as mutually agreed. 
For services included in net billing procedures, payments due one Party 
in any month shall be offset against payments due the other Party in 
such month, and the resulting net balance shall be paid to the Party in 
whose favor such balance exists. The Parties shall exchange such 
reports and information that either Party requires for billing 
purposes. Net billing shall not be used for any amounts due which are 
in dispute.

14.0  Bill Crediting

    As agreed in the Service Agreement, payments due the Transmission 
Provider by a Transmission Customer shall be paid by a Transmission 
Customer to a third party when so directed by the Transmission 
Provider. Any third party designated to receive payment in lieu of the 
Transmission Provider, and the amount to be paid to that party, will be 
so identified in writing to a Transmission Customer with the monthly 
power bill. The payment to the third party shall be due and payable by 
the payment due date specified on the Transmission Provider's bill. 
When remitting payment to a designated third party, a Transmission 
Customer shall indicate that such payment is being made on behalf of 
the Transmission Provider. The Transmission Provider shall credit a 
Transmission Customer for the amount paid as if payment had been made 
directly to the Transmission Provider. All other payment provisions 
shall remain in full force and effect.

Attachment K

Transmission Provider Authorities And Obligations

    Western Area Power Administration (Western) was established on 
December 21, 1977, pursuant to Section 302 of the Department of Energy 
(DOE) Organization Act, Public Law 95-91, dated August 4, 1977. 
Western's primary and long-standing mission is to market Federal power 
resources with emphasis on maintaining an efficient and reliable power 
system. Western is a partial requirements power supplier that markets 
and transmits Federal power resources in 15 Central and Western States 
encompassing a geographic area of 3.38 million-square-kilometers (1.3 
million-square-miles). Western has four Customer Service Regional 
Offices and the Colorado River Storage Project Customer Service Center, 
each referred to in the Tariff as Regional Office. Western markets 
power and provides transmission service from various multi-purpose 
hydroelectric projects and one coal-fired power plant in Arizona. 
Western will sell transmission service using Federally owned or 
controlled facilities only to the extent that transmission capacity is 
available in excess of that needed to deliver Federal power.
    Western is not a public utility under Sections 205 and 206 of the 
Federal Power Act and is not specifically subject to the requirements 
of the Federal Energy Regulatory Commission's (FERC or Commission) 
Final Orders 888 and 888-A. Western is a transmitting utility subject 
to Section 211 of the Federal Power Act as amended by the Energy Policy 
Act of 1992. The Department of Energy has issued a Power Marketing 
Administration Open Access Transmission Policy that supports the intent 
of the FERC Notice of Proposed Rulemaking for Open Access Transmission.
    Western's Regional Offices reserved transmission capacity shall 
include capacity sufficient to deliver Federal power resources, 
including statutory and firm electric service and project use power. 
The Tariff is intended to provide for transmission of non-Federal power 
on the unused capacity of transmission facilities under the 
jurisdiction or control of each of Western's Regional Offices, as well 
as each Regional Office's use of those facilities for third party 
sales, in a manner consistent with the spirit and intent of FERC Orders 
888 and 888-A.
    By statute, Western markets Federal power resources to Federal 
Customers, defined for purposes of this Tariff to be the statutory and 
firm electric service customers and project use power users of the 
Federal government. Western's transmission system was built primarily 
to enable the delivery of Federal power to satisfy contractual 
obligations, which are generally only partial requirements. Western 
interprets the term, ``Native Load Customers'' as used under this 
Tariff to be analogous to and the closest equivalent of Western's 
Federal Customers. Western therefore will treat its Federal Customers 
in a manner analogous to the treatment of Native Load Customers by 
public utilities.

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Western is committed to providing comparable open-access transmission 
service to all customers. However, nothing in this Tariff shall alter, 
amend or abridge the statutory or contractual obligations of Western to 
market and deliver Federal power resources to Federal Customers and to 
repay the Federal investment in such projects.
    Western has prepared this Tariff and service agreements to provide 
transmission service comparable to that required of public utilities by 
FERC Orders 888 and 888-A, and to implement the spirit and intent of 
those Orders consistent with the DOE Policy. An entity desiring 
transmission service from Western must comply with the application 
procedures outlined herein. The review and approval requirements 
detailed herein will apply to all requesting parties.
    Western will perform the necessary studies or assessments for 
evaluating requests for transmission service as set forth in the 
Tariff. Any facility construction or interconnection necessary to 
provide transmission service will be subject to Western's General 
Requirements for Interconnection which are available upon request.
    It is Western's intent to provide Firm and Non-Firm Point-to-Point 
Transmission Service and Network Integration Transmission Service 
consistent with the Tariff. The specific terms and conditions for 
providing transmission service to a customer will be included in a 
Service Agreement. Operating Procedures, Available Transmission 
Capacity (ATC), and System Impact Methodology are defined in the 
Attachments. Western's rates are developed under a separate public 
process pursuant to applicable Federal law and regulations. Therefore, 
rates and charges for specific services will be set forth in the 
appropriate Regional rates schedules attached to each Service 
Agreement.
    Based on a reasonable level of risk, Western has marketed the 
maximum practical amount of power from each of its projects, leaving 
little flexibility for provision of additional power services. Changes 
in water conditions frequently affect the ability of hydroelectric 
projects to meet obligations on a short term basis. The unique 
characteristics of the hydro resource, Western's marketing plans, and 
the limitations of the resource due to changing water conditions may 
limit Western's ability to provide generation-related services 
including ancillary services and redispatching using Federal hydro 
resources.

Colorado River Storage Project Customer Service Center

    The Colorado River Storage Project Customer Service Center (CRSP 
CSC), located in Salt Lake City, Utah, markets power from three Federal 
multipurpose water development projects; the Colorado River Storage 
Project, the Collbran Project, and the Rio Grande Project, collectively 
called the Integrated Projects. The hydroelectric facilities associated 
with these projects include: Flaming Gorge and Fontelle powerplants on 
the Green River; Blue Mesa, Morrow Point, and Crystal powerplants on 
the Gunnison River; Upper and Lower Molina powerplants of the Collbran 
Project in Western Colorado; the largest of the CRSP facilities, Glen 
Canyon power plant on the Colorado River; and Elephant Butte power 
plant, part of the Rio Grande Project on the Rio Grande River in South 
Central New Mexico. The CRSP transmission system consists of high-
voltage transmission lines and attendant facilities extending from 
Arizona, into New Mexico, through Colorado, and into portions of Utah 
and Wyoming. The CRSP CSC uses the CRSP transmission system to meet its 
commitments to its federal customers, point-to-point transmission 
customers, and exchange power contractors. The CRSP CSC must, 
therefore, reserve sufficient transmission capacity to meet these long-
term obligations. The CRSP CSC also needs to reserve capacity in its 
transmission system to enable it to deliver power produced by the 
Integrated Projects hydroelectric powerplants during periods when flood 
control water releases produce greater than normal generation levels.
    The CRSP office, located in Salt Lake City, is a member of the 
Western Regional Transmission Association and Southwest Regional 
Transmission Association and operates within the Western Systems 
Coordinating Council.
    The CRSP CSC does not operate a control area and as such may be 
unable to provide some or all of the services under the Tariff from its 
Integrated Projects hydroelectric resources, including, but not limited 
to, ancillary services and Network Integration Transmission Service.
    The CRSP CSC application processing fee will be $1,600.

Desert Southwest Region

    The Desert Southwest Region (DSR) manages transmission facilities 
in the states of Arizona, California, and Nevada. These transmission 
facilities were constructed for the primary purpose of marketing power 
from the Navajo Project for the Central Arizona Project, Boulder Canyon 
Project and the Parker-Davis Project. The Pacific Northwest-Pacific 
Southwest Intertie Project (Intertie), in which the DSR has ownership 
rights and administers the southern portion, is a part of the DSR 
transmission facilities. Transmission facilities of the Parker-Davis 
Project and the Intertie Project are included in this Tariff. The DSR 
transmission facilities are integrated with transmission facilities of 
several non-Federal entities. DSR is a member of the Southwest Regional 
Transmission Association and the Western Regional Transmission 
Association and its system is operated in the Western Systems 
Coordinating Council, and adheres to their criteria. DSR manages a 
control area operations center in its Desert Southwest Regional Office. 
The DSR office and the control area operations both are located in 
Phoenix, Arizona.
    The DSR application processing fee will be $1,700.

Rocky Mountain Region

    The Rocky Mountain Region (RMR) manages transmission facilities in 
the states of Colorado, Wyoming, Nebraska, and Kansas which were 
constructed for the primary purpose of marketing power from the Pick-
Sloan Missouri Basin Program--Western Division. The RMR office and 
control area operations center is located in Loveland, Colorado. The 
RMR is a member of the Western Regional Transmission Association and 
its system is operated in the Western Systems Coordinating Council.
    For RMR, the rates for Point-to-Point and Network Integration 
Transmission Service charged pursuant to the Tariff will be calculated 
using the costs of the transmission facilities of the Pick-Sloan 
Missouri Basin Program--Western Division. The rates for the ancillary 
services will be calculated using the costs of the generation 
facilities of the Pick-Sloan Missouri Basin Program--Western Division 
and the Fryingpan--Arkansas Project.
    The RMR application processing fee will be $1,600.

Sierra Nevada Region

    The Sierra Nevada Customer Service Region (SNR), located in Folsom, 
California, manages the Central Valley Project (CVP) transmission 
facilities in the state of California. These facilities were 
constructed for the primary purpose of marketing power resources from 
the CVP. SNR also has ownership rights to capacity in two multi-party 
transmission systems, the Pacific Northwest-Pacific Southwest Intertie 
Project (Pacific AC Intertie), and the

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California-Oregon Transmission Project (COTP). Congress authorized 
SNR's participation in the Pacific AC Intertie for the purpose of 
importing power from the Pacific Northwest. COTP rights were acquired 
pursuant to Public Law 98-630, primarily for the purpose of delivering 
power to the United States Department of Energy Laboratories (DOE Labs) 
and Federal Fish and Wildlife refuges. Long-term use of the Pacific AC 
Intertie and COTP by third parties is restricted under existing 
contracts. SNR is a member of the Western Regional Transmission 
Association regional transmission group and operates within the Western 
Systems Coordinating Council reliability council.
    The SNR does not operate a control area and as such may be unable 
to provide some or all of the services under the Tariff, including but 
not limited to, ancillary services and Network Integration Transmission 
Service.
    The SNR application processing fee will be $1,300.

Upper Great Plains Region

    The Upper Great Plains Region (UGPR) manages transmission 
facilities in the states of Montana, North Dakota, South Dakota, 
Nebraska, Minnesota, and Iowa which were constructed for the primary 
purpose of marketing power from the Pick-Sloan Missouri Basin Program--
Eastern Division. The UGPR office is located in Billings, Montana. The 
UGPR manages a control area operations center in Watertown, South 
Dakota. The eastern portion of the UGPR system is operated in the Mid-
Continent Area Power Pool (MAPP) reliability council. The western 
portion of the system is operated in the Western Systems Coordinating 
Council.
    The UGPR transmission facilities are integrated with the 
transmission facilities of Basin Electric Power Cooperative (Basin) and 
Heartland Consumers Power District (Heartland) such that transmission 
services are provided over an integrated transmission system. UGPR 
rates for Point-to-Point and Network Integration Transmission Service 
charged pursuant to the Tariff will be calculated using the costs of 
the transmission facilities of UGPR, Basin, and Heartland that are 
included in the Transmission System. This Transmission System is also 
called the Integrated System (IS) and the rates are identified as IS 
Rates. The integration of these facilities as the IS and the use of the 
IS rates have been approved by the Administrator of Western through 
December 19, 1997. The definition of the Transmission System and the 
rates for Point-To-Point and Network Integration Transmission Service 
may be subject to change upon conclusion of an Open Access Transmission 
Service rate development process conducted pursuant to applicable 
Federal Law and regulations.
    Both Basin and Heartland also own generating facilities and must 
commit to deliver the output of those resources to their respective 
members. Basin and Heartland will therefore reserve sufficient capacity 
in their transmission facilities to deliver that output.
    Any Transmission Customer taking service under these Guidelines 
shall be subject to a Stranded Cost Charge payable to either UGPR, 
Basin or Heartland if such service is used for the transmission of 
power or energy that replaces wholly or in part, power or energy 
supplied by Western, Basin or Heartland respectively.
    The Stranded Cost Charge of Basin shall be applicable regardless of 
whether the transmission relates to power and/or energy that is 
purchased by or on behalf of a Generation and Transmission Cooperative 
member of Basin (G&T), a Distribution Cooperative member of Basin or 
G&T, or a retail customer of a Distribution Cooperative member of Basin 
or a G&T.
    The Stranded Cost Charge of Heartland shall be applicable whether 
the transmission service relates to power and/or energy that is 
purchased by or on behalf of a municipal customer of Heartland or a 
retail customer of a municipal customer of Heartland.
    Stranded costs will be recovered only from a Transmission Customer 
who obtains transmission service under access rights granted through 
the Transmission Provider's compliance tariff developed pursuant to 
FERC Final Orders 888 and 888-A and causes either UGPR, Basin or 
Heartland to incur stranded costs. Stranded costs will be recovered 
through the terms and conditions of a separate contract entered into 
either by UGPR and the Transmission Customer or Basin and the 
Transmission Customer or Heartland and the Transmission Customer.
    The UGPR application processing fee will be $1,700.

[FR Doc. 97-25332 Filed 9-25-97; 8:45 am]
BILLING CODE 6450-01-P