[Federal Register Volume 63, Number 3 (Tuesday, January 6, 1998)]
[Notices]
[Pages 483-521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-132]
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DEPARTMENT OF ENERGY
Southwestern Power Administration
Open Access Transmission Service Tariff
AGENCY: Southwestern Power Administration, DOE.
ACTION: Notice of final tariff.
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SUMMARY: The Southwestern Power Administration (Southwestern) is
adopting this final Open Access Transmission Service Tariff (Final
Tariff) in accordance with the Federal Energy Regulatory Commission
(FERC) Orders 888 and 888-A, to the extent consistent with laws and
regulations applicable to Southwestern's activities.
DATES: The Final Tariff will become effective February 5, 1998. The
Final Tariff will remain in effect until superseded.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Procedures
II. Background
III. Comments Raised During the Development of this Final Tariff
IV. Summary of Significant Changes from the Southwestern's Proposed
Tariff
V. Coordination with Adoption of Open Access Transmission Rates
I. Procedures
Southwestern will submit the Final Tariff to the FERC under a non-
jurisdictional docket and will request a declaratory order that this
Final Tariff meets FERC comparability standards as forth in FERC Order
Nos. 888 and 888-A. Southwestern will make necessary changes, if any,
in response to the FERC declaratory order and will publish the revised
Final Tariff in the Federal Register.
II. Background
Southwestern Power Administration (Southwestern) was created by
Secretarial Order No. 1865, dated August 31, 1943, as an agency of the
Department of the Interior, to carry out the power marketing
responsibilities assigned to the Secretary of the Interior by Executive
Order 9366, dated July 30, 1943, and Executive Order 9373, dated August
30, 1943. Section 5 of the Flood Control Act of December 22, 1944 (58
Stat. 887, 890; 16 U.S.C. 825s) broadened the power marketing
responsibilities of the Secretary of the Interior by placing in him the
responsibility for marketing the electric power and energy generated at
reservoir projects built by and under the control of the Department of
the Army. The U.S. Department of Energy was created by an Act of the
U.S. Congress under the Department of Energy Organization Act, Public
Law 95-91, dated August 4, 1977. Pursuant to Sections 302(a) and 301(b)
of such Act, the functions of the Secretary of the Interior and the
Federal Power Commission under Section 5 of the Flood Control Act of
1944 which relate to Southwestern were transferred to and vested in the
Secretary of Energy effective October 1, 1977.
Under the said Section 5, Southwestern is enjoined to market power
and energy generated at U.S. Army Corps of Engineers dams with
preference to public bodies and cooperatives, in such manner as to
encourage the most widespread use of the resource, at the lowest
possible rates to consumers consistent with sound business principles.
The hydroelectric projects from which Southwestern currently markets
power and energy are located in the States of Arkansas, Missouri,
Oklahoma, and Texas. Southwestern is a partial requirements supplier by
the nature of its hydroelectric power resource to 93 municipal,
cooperative, and military electric systems in the States of Arkansas,
Kansas, Louisiana, Missouri, Oklahoma, and Texas. Southwestern is not a
public utility under Sections 205 and 206 of the Federal Power Act.
Southwestern is a transmitting utility subject to Section 211 of the
Federal Power Act as amended by the Energy Policy Act of 1992.
The Federal Energy Regulatory Commission (FERC) issued a Notice of
Proposed Rulemaking (NOPR) for Open Access Transmission Service,
published at 60 FR 17662, on April 7, 1995. On October 4, 1995, the
Secretary, Department of Energy (DOE), adopted a ``Power Marketing
Administration Open Transmission Access Policy'' (DOE Policy) in which
the Secretary states that DOE supports the spirit and intent of the
NOPR and directs the Power Marketing Administrations to prepare tariffs
which conform to the principles set forth in the FERC's final rule.
FERC issued its final rule, Order No. 888, published at 61 FR 21540, on
May 10, 1996, and followed with supplementary Order No. 888-A,
published at 62 FR 12273, on March 14, 1997.
Southwestern began its formal process of developing this Final
Tariff when it issued a Notice of Proposed Tariff published at 62 FR
50307 on September 25, 1997 (proposed Tariff). Southwestern's Final
Tariff is based on the suggested open access transmission tariff
published as Appendix B to FERC Order No. 888-A (pro forma tariff). On
October 9, 1997, Southwestern held a public information meeting at its
Tulsa, Oklahoma offices. The formal comment period for the proposed
Tariff lasted 45 days. Comments received during this formal period were
considered in the development of the Final Tariff. Southwestern will
submit the Final Tariff to FERC under a non-jurisdictional docket and
request a declaratory order from FERC that the Final Tariff meets or
exceeds the FERC comparability standards set forth in FERC Orders No.
888 and 888-A.
The transmission facilities which Southwestern owns and operates
are committed to the delivery of Federal hydroelectric capacity and
energy under
[[Page 484]]
the terms and conditions of electric service contracts which implement
Southwestern's statutory obligations to market Federal power.
Fulfillment of such obligations is complementary with the provisions of
the Final Tariff. Transmission service provided by Southwestern under
the Final Tariff is available for the transmission capacity in
Southwestern's system in excess of that required by Southwestern for
the integration of its resources for the long-term reliable delivery of
Federal power allocated to customers under contract to Southwestern.
Nothing in the Final Tariff alters, amends, or abridges the statutory
or contractual obligations of Southwestern to market and deliver
Federal power resources and to repay the Nation's investment in the
generation and transmission facilities from which Southwestern markets
hydropower and energy.
Southwestern has prepared this Final Tariff and service agreements
to provide transmission service comparable to that required of public
utilities by FERC Orders No. 888 and 888-A, and to implement those
Orders consistent with DOE Policy. Southwestern intends to provide Firm
and Non-Firm Point-to-Point Transmission Service and Network
Integration Transmission Service under the terms and conditions of the
Final Tariff. The Final Tariff does not include any rates or charges
for services, as Southwestern's rates are developed under a separate
public process pursuant to applicable Federal law and regulations.
However, Southwestern's rate schedule for non-Federal transmission
service has been developed in coordination with the provisions of the
pro forma Tariff and conforms in all respects to the Final Tariff.
Service agreements which incorporate the Final Tariff will also include
Southwestern's rate schedule for non-Federal transmission service.
Based on a reasonable level of risk, Southwestern has historically
marketed the maximum practical power from its resources, leaving little
or no flexibility for provision of additional power services. Changes
in water conditions frequently affect the ability of hydroelectric
projects to meet obligations on a short-term basis. The unique
characteristics of the hydro resource and its inherent limitations due
to changing water conditions may limit Southwestern's ability to
provide generation-related services such as ancillary services and
redispatching under the Final Tariff.
III. Comments Raised During the Development of This Final Tariff
The formal public comment period produced a number of comments
about the proposed Tariff. The following discussion highlights the more
significant comments and Southwestern's responses.
Comment. Commentors expressed concern that Southwestern did not
specify power loss factors and rates in the proposed Tariff.
Response. Southwestern chose not to duplicate matters in the Tariff
which are covered in its rate schedules. The rate schedules are
developed under a separate process dictated by Federal regulations
which includes a significant public participation process. Four percent
losses, based on a recent loss study, are included in the proposed rate
schedules which are expected to go into effect January 1, 1998.
Comment. Commentors were concerned about Southwestern's statement
in the proposed Tariff that Network Service may not be provided. A
commentor finds Attachments F, G, and H, having to do with Network
Service, inadequate.
Response. Southwestern has determined that Network Integration
Transmission Service will be provided, and is addressed in its proposed
rate schedule for non-Federal transmission service. Southwestern is
publishing a network service agreement in Attachment F to the Final
Tariff. Attachment G, on the Network Operating Agreement, has not been
changed from the proposed Tariff because Southwestern expects that, in
the event that network service is requested, the operating agreements
will be unique to each arrangement and will be individually negotiated.
Attachment H does not specify Southwestern's annual revenue
requirement, but refers to Southwestern's rate schedule for non-Federal
transmission service which has that information. This reference is
consistent with Southwestern's decision to place all matters related
directly to rates in the rate schedules rather than in the Final
Tariff.
Comment. Commentors objected to the changes Southwestern proposes
to make in the pro forma tariff provisions related to stranded costs
(Sections 26 and 34.5) and related to payment for direct assignment
facilities, ancillary services, and study costs (Section 34). The
objection was that citing applicable Federal law and regulations as the
guidance for such actions is more vague than the original language
which cites FERC Order No. 888 and FERC policy, respectively, as the
guidance for such recovery.
Response. Southwestern originally made the changes to the proposed
Tariff because Southwestern is not under the jurisdiction of the FERC.
However, upon a closer reading of these sections, Southwestern has
determined that acknowledging the guidance of the FERC in these matters
does not impair Southwestern's non-jurisdictional status. Accordingly,
Southwestern has returned, in part, to the pro forma tariff language in
Sections 26 and 34.5. In Section 34, Southwestern changed the phrase
``Federal policy'' in the proposed Tariff to ``Federal practice'' in
the Final Tariff, which effectively makes the cited guideline more
limited and specific.
Comment. A commentor was concerned that Southwestern has not
deleted language in some sections, such as 20.2 and 21.2, which may
suggest that the FERC has jurisdiction over Southwestern greater than
it does indeed have. The commentor requested additional deletions in
these and other sections or recommended that references to FERC policy
or rules be amended to refer instead to Federal laws, regulations, and
policies.
Response. The DOE Policy issued October 4, 1995, directs
Southwestern to offer transmission service in a manner comparable to
the FERC's final rule on open access transmission service ``to the
extent not otherwise prohibited by law.'' Upon examination,
Southwestern judges that the specific recommended changes are not
necessary to preserve Southwestern's non-jurisdictional status, so the
suggested changes were not incorporated into the Final Tariff.
Comment. A commentor objects to any provisions which would permit
Southwestern to provide service without an executed agreement.
Response. Southwestern prefers to provide service only when an
executed Service Agreement exists, and intends to avoid providing
service without the protection of an executed agreement if at all
possible. However, in the present utility environment, Southwestern
believes it must be able to initiate transmission service without an
executed agreement, if necessary. Accordingly, Southwestern did not
change the provisions of its proposed Tariff which address this matter.
Comment. A commentor made several suggestions for additions to the
pro forma tariff language which would state, in various forms, that
Southwestern is limited to actions which are consistent with its
authorities granted under Federal law, regulations, or policies.
Response. Southwestern is indeed limited in its actions due to its
status as
[[Page 485]]
a Federal agency. However, in all but one of the cases where such
additions were suggested, Southwestern determined that necessary
limitations were implicit in the pro forma tariff language and did not
require an explicit statement. While such additions could be proper,
Southwestern has adhered to the principle of avoiding making changes,
either of omission or addition, to the pro forma tariff language unless
such changes are necessary to preserve Southwestern's authorities and
obligations under Federal law, regulations, and policies. Except for an
addition to Section 13.5, the proposed changes were not considered
necessary for such preservation.
Comment. Commentors found the language in Attachment J stating that
Federal Customers are considered to be the equivalent to Native Load
Customers insufficient to protect the rights of Federal power
customers. One commentor recommended that Southwestern insert a
``binding provision'' in the body of the Final Tariff to the effect
that the Tariff applies only to transmission capacity in excess of the
requirements of Southwestern's primary mission. Others suggested that
the pro forma tariff definition of Native Load Customer be amended to
reflect Southwestern's statutory obligations to market and deliver
Federal power and energy, or recommended other changes to Attachment J.
Response. Southwestern edited Attachment J to strengthen and
clarify its authority and obligations and inserted the new language as
a Preamble to the Final Tariff. Southwestern removed the language which
stated that its Federal power customers are the equivalent of Native
Load Customers, and did not alter the pro forma tariff definition the
Final Tariff. Placing this language in the body of the Final Tariff
should alleviate the concerns of the commentor.
Comment. One commentor objects to the process in Section 7.3 for
customers who are in default due to non-payment of bills. The commentor
believes that Southwestern's proposed language is inferior to the pro
forma tariff language because it does not provide the same level of
recourse as the pro forma tariff.
Response. Southwestern believes that its provision for handling
customer defaults is appropriate, as referring disputes to the FERC
(pro forma tariff provision) is not consistent with Southwestern's non-
jurisdictional status. Southwestern believes that a specific reference
to the disputes resolution procedures of the Final Tariff is
unnecessary in this Section.
Comment. A commentor requests that Southwestern amend Section 9 of
the proposed Tariff to preserve customers' rights to participate in any
public process to amend the Tariff.
Response. Southwestern is committed to providing a public process
for any future changes it may make to the Final Tariff in accordance
with the Administrative Procedures Act. However, Southwestern does not
consider the Tariff itself as an appropriate place to state this
commitment. In addition, FERC's normal filing processes provide for
intervention by any interested party, which gives customers an
additional opportunity for input into the process.
Comment. A commentor made extensive comments on Southwestern's
intent to require in advance any funds needed for studies or
construction. The concerns were two-fold. First was a recommendation
that Southwestern include language in construction contracts to
delineate ownership rights for any facilities which use a customer's
advance funds, including circumstances where such facilities are not
completed. Secondly, the customer objected to Southwestern's deleting
all references in the pro forma tariff language to the return of
deposits with interest.
Response. Under the pro forma tariff, all studies and construction
are provided for under separately negotiated agreements between the
Transmission Provider and the Transmission Customer. Southwestern has
long had a practice of addressing ownership of facilities in its
construction agreements, and will continue to do so. While this matter
is not directly related to the tariff, per se, Southwestern will
endeavor to take these comments into account during any future
negotiations for study and construction agreements.
It has never been Southwestern's practice to pay interest on funds
deposited in advance for facilities studies or construction,
principally because Southwestern has no way of accruing interest on
such funds, which are directly deposited into the U.S. Treasury. If
interest were to be paid on refunded amounts, the expense would
necessarily become part of the rate base and would therefore be borne
by all customers. Therefore, Southwestern will continue to delete
language in the pro forma tariff which would require Southwestern to
pay interest on refunded amounts.
Comment. Commentors objected to Southwestern's proposal to replace
the pro forma tariff's provisions for a deposit which could be returned
with interest with a nonrefundable processing fee. The primary concern
seemed to be that the fee, which was not specified in the proposed
Tariff, might be unduly burdensome.
Response. Southwestern specifies the amounts of such fees in its
Final Tariff, based on estimated staff costs for evaluating a customer
request. Southwestern believes that the specified fees are reasonable
and should not be unduly burdensome to potential customers of these
services.
Comment. One commentor is concerned that Southwestern may wish to
charge an agency fee if Southwestern has to purchase some ancillary
services. Another commentor was concerned that Southwestern's
hydroelectric resources might be compromised by providing generation-
related ancillary services at all, and suggests that Southwestern
confine itself to brokering such ancillary services, rather than to
providing them directly. Still another suggested that further
limitations on the provision of ancillary service be inserted into the
Final Tariff, and objects to an implication that Southwestern would set
the level of some ancillary services unilaterally in service
agreements.
Response. The Final Tariff provides that, in the event that
Southwestern purchases ancillary services on behalf of a customer, the
costs are passed through to the customer. Southwestern has no intent to
charge an agency fee or other markup. Southwestern believes that the
limitations on its ability to use Federal power resources to provide
ancillary services are sufficiently set forth in its revisions to
Section 3. Language in Schedules 1 through 6 which previously indicated
that the level of some ancillary services would be set in the service
agreement has been removed. Southwestern believes that brokering
ancillary services, except when hydropower resources are severely
limited, is not a practical way to provide such services.
Comment. A commentor pointed out that the provision in Section 13.8
for submitting schedules for firm transmission service by 10:00 a.m. of
the previous day is not consistent with regional practice.
Response. Southwestern agrees, and has changed the references to
10:00 a.m. to 2:00 p.m.
Comment. A commentor was concerned about the requirement that
Energy Imbalances be corrected within 30 days and recommended a longer
period before the Transmission Customer is assessed a charge for such
service.
Response. Southwestern does not foresee this issue being a problem
based on historical interactions with those of
[[Page 486]]
its customers which are located within Southwestern's Control Area,
which are the only customers to whom this ancillary service would
apply. Again, Southwestern desires to avoid making changes to the pro
forma tariff where possible.
Comment. A commentor requests that Southwestern state for the
record that it ``intends to abide by its existing contracts, including
rates set forth in those contracts.''
Response. Southwestern will indeed abide by its existing contracts.
However, all such contracts provide that rates may be changed, as
needed, in conformity with Southwestern's rate process, which is
subject to Federal regulations and which is driven by Southwestern's
legal requirement to recover its costs and to repay the Nation for its
investment in the generation and transmission facilities from which
Southwestern markets Federal power and energy. Existing contracts
provide for terms and conditions of service, but specify that rates for
services under such contracts change when Southwestern's rates change.
Such customers have the right to terminate these contracts if they find
changed rates unsatisfactory.
Comment. A commentor expressed concern that Southwestern's decision
to not publish its standard contracts as part of the proposed Tariff
could lead to inequity for future transmission customers.
Response. Southwestern is publishing its standard Service
Agreements in the Final Tariff.
Comment. Commentors found Attachments C and D to the Tariff, on
Southwestern's methodology for assessing Available Transfer Capability
(ATC) or for doing System Impact Studies, respectively, inadequate.
Response. Southwestern changed its Attachment C to cite the
specific Southwest Power Pool (SPP) methodology for assessing ATC.
Southwestern's ATC is computed as part of the SPP, from data supplied
by Southwestern, and is not an independent Southwestern process. As
this methodology is lengthy and is publicly available, Southwestern
sees no reason to include it in greater detail in the Final Tariff.
Southwestern amends Attachment D to indicate that Southwestern is in
the process of developing and standardizing its criteria for evaluating
facilities. The new standards, when available, may be requested by any
current or potential customer.
Comment. Commentors expressed a concern about the rate calculation
process, and expressed a desire for Southwestern to develop an
``adjustment method'' for correcting over- or under-collection of
revenues for transmission services.
Response The process of rate design and calculation is not
pertinent to the Tariff. All rates for non-Federal transmission
service, and the process of their development, are handled under a
separate regulatory process. Southwestern's annual Power Repayment
Study automatically factors in any over- or under-collection of
revenues and makes necessary adjustments to the rates as warranted.
IV. Summary of Significant Changes from the Southwestern's Proposed
Tariff
Attachment J, ``Authorities and Obligations,'' of the proposed
Tariff was deleted in the Final Tariff, and an edited portion of the
original text was inserted as the Preamble to the Final Tariff.
The language added by Southwestern to the pro forma tariff in
Section 3, ``Ancillary Services'' was edited for clarity.
Southwestern amended Section 7, ``Billing and Payment,'' of the
proposed Tariff by changing the due date for invoices (7.1), by
clarifying the section (7.3) on customer default, and by adding two new
sections (7.4 and 7.5) on billing to the body of the Final Tariff, from
these provisions' previous position in the proposed service agreements.
These changes place all language on billing in one section and change
the due date provision to conform to Southwestern's invoicing practice.
Southwestern restored Section 10.1, ``Force Majeure,'' to the
language of the pro forma tariff.
Southwestern amended Section 12, ``Dispute Resolution Procedures,
by restoring most of the last sentence in 12.1 of the pro forma tariff
language, adding a new subsection, ``External Dispute Resolution
Procedures,'' and renumbering the old Section 12.2 to 12.3.
Southwestern added the phrase, ``and subject to the Transmission
Provider's authority under Federal law to complete the expansion or
upgrade'' to the end of the first sentence in Section 13.5,
``Transmission Customer Obligations for Facility Additions or
Redispatch Costs.''
Southwestern changed the scheduling deadline in Section 13.8,
``Scheduling of Firm Point-to-Point Transmission Service,'' from 10:00
a.m. to 2:00 p.m.
Southwestern changed the language in Sections 15.7 and 28.5, ``Real
Power Losses,'' from referring to service agreements for loss factors
and rates, to referring to Southwestern's rate schedules.
Southwestern changed the mailing address given in Section 17.1,
``Application,'' from Southwestern's post office box address to its
street address, to reflect a decision to phase out the post office box
address in the future.
Sections 17.3, ``Processing Fee,'' and 29.2, ``Application
Procedures,'' were amended to insert specific application processing
fees.
Sections 19.4 and 32.4, ``Facilities Study Procedures,'' were
edited to correct minor inconsistencies in language related to payment
of funds.
Section 24.3, ``Power Factor,'' was edited to reflect the fact that
Southwestern's power factor requirements are stated in its rate
schedules rather than in service agreements.
Section 25, ``Compensation for Transmission Service,'' was edited
to reflect the fact that the rates for service under the Final Tariff
are in Southwestern's rate schedule rather than in the Schedules 7 and
8 attached to the Final Tariff.
Sections 26 and 34.5, ``Stranded Cost Recovery,'' were changed by
restoring part of the original pro forma tariff language.
Section 34, ``Rates and Charges,'' was edited to change the phrase
``Federal policy'' to ``Federal practice.''
Schedules 1 through 8 were simplified and restored more nearly to
the pro forma tariff.
Southwestern deleted its Attachments A, B, and F of the proposed
Tariff, and replaced them with standard service agreements for long-
term firm transmission service, for short-term firm and non-firm
transmission service, and for network integration transmission service,
respectively.
Minor editing in Attachments C and D provide additional clarity and
specificity.
A list of transmission customers was added to Attachment E.
Attachment H was edited to remove language in the proposed Tariff
and to refer to Southwestern's rate schedule for transmission service
as the source for Southwestern's annual revenue requirement in regard
to network integration transmission service.
V. Coordination With Adoption of Open Access Transmission Rates
Southwestern's rate process, which is distinct from the rate
process used by public utilities, includes mandatory public
participation procedures, as described in 10 CFR 903. Additionally,
Southwestern's rates are reviewed by the FERC under different
parameters
[[Page 487]]
than those used for review of public utility rates.
Southwestern is presently in the process of filing new rates and
rate schedules, and expects to implement such new rates on January 1,
1998. The proposed rates for transmission service are structured in
accordance with the Final Tariff. The new rate schedules will be
attached to service agreements executed under the Tariff.
Review Under Executive Order 12866
Southwestern has an exemption from centralized regulatory review
under Executive Order 12866; accordingly, no clearance of this notice
by the Office of Management and Budget (OMB) is required.
Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires
Federal agencies to perform a regulatory flexibility analysis if a
proposed regulation is likely to have a significant economic impact on
a substantial number of small entities. Pursuant to the execution of
this Federal Register notice, the Administrator, Southwestern,
certifies that no significant economic impact on a substantial number
of small entities will occur.
A redline/strikeout comparison of Southwestern's Final Tariff to
the FERC pro forma tariff is available on the Internet at http://
www.swpa.gov.
Dated: December 18, 1997.
Michael A. Deihl,
Administrator.
Open Access Transmission Service Tariff
Table of Contents
Preamble: Authorities and Obligations
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 (OASIS).
1.29 Part I.
1.30 Part II.
1.31 Part III.
1.32 Parties
1.33 Point(s) of Delivery
1.34 Point(s) of Receipt
1.35 Point-To-Point Transmission Service.
1.36 Power Purchaser.
1.37 Receiving Party.
1.38 Regional Transmission Group (RTG).
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 26Initial 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.
7.4 Payment Processes.
7.5 Net Billing
8 Accounting for the Transmission Provider's Use of the Tariff
8.1 Transmission Revenues.
8.2 Study Costs and Revenues.
9 Regulatory Filings
10 Force Majeure and Indemnification
10.1 Force Majeure.
10.2 Indemnification.
11 Creditworthiness
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures.
12.2 External Dispute Resolution Procedures.
12.3 Administrative Disputes Resolution Act.
12.4 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
[[Page 488]]
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 Integation Transmission Service
Preamble
28 Nature of Network Integration Transmission Service
28.1 Scope of Service.
28.2 Transmission Provider Responsibilities.
28.3 Network Integration Transmission Service.
28.4 Secondary Service.
28.5 Real Power Losses.
28.6 Restrictions on Use of Service.
29 Initiating Service
29.1 Condition Precedent for Receiving Service.
29.2 Application Procedures.
29.3 Technical Arrangements to be Completed Prior to
Commencement of Service.
29.4 Network Customer Facilities.
29.5 This section is intentionally left blank.
30 Network Resources
30.1 Designation of Network Resources.
30.2 Designation of New Network Resources.
30.3 Termination of Network Resources.
30.4 Operation of Network Resources.
30.5 Network Customer Redispatch Obligation.
30.6 Transmission Arrangements for Network Resources Not
Physically Interconnected With The Transmission Provider.
30.7 Limitation on Designation of Network Resources.
30.8 Use of Interface Capacity by the Network Customer.
30.9 Network Customer Owned Transmission Facilities.
31 Designation of Network Load
31.1 Network Load.
31.2 New Network Loads Connected With the Transmission
Provider.
31.3 Network Load Not Physically Interconnected with the
Transmission Provider.
31.4 New Interconnection Points.
31.5 Changes in Service Requests.
31.6 Annual Load and Resource Information Updates.
32 Additional Study Procedures For Network Integration
TransmissionService 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
Form of Service Agreement For Network Integration Transmission
Service
Attachment G
Network Operating Agreement
Attachment H
Annual Transmission Revenue Requirement For Network Integration
Transmission Service
Attachment I
Index of Network Integration Transmission Service Customers
Open Access Transmission Service Tariff
Preamble: Authorities and Obligations
Southwestern Power Administration (Southwestern) was created by
Secretarial Order No. 1865, dated August 31, 1943, as an agency of the
Department of the Interior, to carry out the power marketing
responsibilities assigned to the Secretary of the Interior by Executive
Orders 9366, dated July 30, 1943, and 9373, dated August 30, 1943.
Section 5 of the Flood Control Act of December 22, 1944 (58 Stat. 887,
890; 16 U.S.C. 825s) broadened the power marketing responsibilities of
the Secretary of the Interior by placing in him the responsibility for
marketing the electric power and energy generated at reservoir projects
built by and under the control of the Department of the Army. Under
Public Law 95-456 (92 Stat. 1230; 16 U.S.C. 825s-3), Southwestern
became part of the Department of Energy pursuant to Section 302 of the
Department of Energy Organization Act (91 Stat. 578; 42 U.S.C. 7152) in
1977.
Pursuant to the Flood Control Act of 1944, Southwestern markets
[[Page 489]]
hydroelectric power and energy which is generated at U.S. Army Corps of
Engineers (Corps) Dams in excess of project needs ``to encourage the
most widespread use thereof at the lowest possible rates to consumers
consistent with sound business principles * * *. Preference in the sale
of such power and energy shall be given to public bodies and
cooperatives.'' Further, ``only such transmission lines and related
facilities as may be necessary in order to make the power and energy
generated at such projects available in wholesale quantities for sale *
* *'' may be constructed or acquired to fulfill this mission.
Southwestern markets power and associated energy from Corps
hydroelectric generation projects in the States of Arkansas, Missouri,
Oklahoma, and Texas, primarily to customers which have received formal
allocations of specified quantities of Federal power and associated
energy (Federal Power Customers) in those states as well as in the
States of Kansas and Louisiana. By statute, Southwestern's Transmission
System was constructed to enable the integration of Southwestern's
hydroelectric power resources to satisfy Southwestern's contractual
obligations to its Federal Power customers. Southwestern sells
transmission service from federally owned or controlled facilities only
to the extent that transmission capacity is available in excess of that
necessary to reliably deliver Federal power.
Southwestern is not a jurisdictional public utility under Sections
205 and 206 of the Federal Power Act and is not specifically subject to
the requirements of the Federal Energy Regulatory Commission's (FERC)
Final Orders Nos. 888 and 888-A. However, Southwestern is a
transmitting utility subject to Section 211 of the Federal Power Act as
amended by the Energy Policy Act of 1992. Southwestern is also subject
to the reciprocity provisions of FERC Order Nos. 888 and 888-A.
Additionally, the Department of Energy has issued a Power Marketing
Administration Open Access Transmission Policy that supports the intent
of the FERC Final Rule in Order No. 888. Southwestern submits this
version of the FERC's Open Access Transmission Tariff (Tariff) as
comparable to the pro forma tariff published in FERC Order No. 888-A
with the proviso that nothing in this Tariff alters, amends, or
abridges the statutory or contractual obligations of Southwestern to
market and deliver Federal power resources and to repay the Federal
investment in the facilities from which Southwestern markets such
resources.
Part I. Common Service Provisions
1 Definitions
1.1 Ancillary Services: Those services that are necessary to
support the transmission of capacity and energy from resources to loads
while maintaining reliable operation of the Transmission Provider's
Transmission System in accordance with Good Utility Practice.
1.2 Annual Transmission Costs: The total annual cost of the
Transmission System for purposes of Network Integration Transmission
Service shall be the amount specified in Attachment H until amended by
the Transmission Provider or modified by the Commission, pursuant to
Federal law.
1.3 Application: A request by an Eligible Customer for
transmission service pursuant to the provisions of the Tariff.
1.4 Commission: The Federal Energy Regulatory Commission.
1.5 Completed Application: An Application that satisfies all of
the information and other requirements of the Tariff, including any
required application processing fee.
1.6 Control Area: An electric power system or combination of
electric power systems to which a common automatic generation control
scheme is applied in order to:
(1) Match, at all times, the power output of the generators within
the electric power system(s) and capacity and energy purchased from
entities outside the electric power system(s), with the load within the
electric power system(s);
(2) Maintain scheduled interchange with other Control Areas, within
the limits of Good Utility Practice;
(3) Maintain the frequency of the electric power system(s) within
reasonable limits in accordance with Good Utility Practice; and
(4) Provide sufficient generating capacity to maintain operating
reserves in accordance with Good Utility Practice.
1.7 Curtailment: A reduction in firm or non-firm transmission
service in response to a transmission capacity shortage as a result of
system reliability conditions.
1.8 Delivering Party: The entity supplying capacity and energy to
be transmitted at Point(s) of Receipt.
1.9 Designated Agent: Any entity that performs actions or
functions on behalf of the Transmission Provider, an Eligible Customer,
or the Transmission Customer required under the Tariff.
1.10 Direct Assignment Facilities: Facilities or portions of
facilities that are constructed by the Transmission Provider for the
sole use/benefit of a particular Transmission Customer requesting
service under the Tariff. Direct Assignment Facilities shall be
specified in the Service Agreement that governs service to the
Transmission Customer.
1.11 Eligible Customer: (i) Any electric utility (including the
Transmission Provider and any power marketer), Federal power marketing
agency, or any person generating electric energy for sale for resale is
an Eligible Customer under the Tariff. Electric energy sold or produced
by such entity may be electric energy produced in the United States,
Canada or Mexico. However, with respect to transmission service that
the Commission is prohibited from ordering by Section 212(h) of the
Federal Power Act, such entity is eligible only if the service is
provided pursuant to a state requirement that the Transmission Provider
offer the unbundled transmission service, or pursuant to a voluntary
offer of such service by the Transmission Provider. (ii) Any retail
customer taking unbundled transmission service pursuant to a state
requirement that the Transmission Provider offer the transmission
service, or pursuant to a voluntary offer of such service by the
Transmission Provider is an Eligible Customer under the Tariff.
1.12 Facilities Study: An engineering study conducted by the
Transmission Provider to determine the required modifications to the
Transmission Provider's Transmission System, including the cost and
scheduled completion date for such modifications, that will be required
to provide the requested transmission service.
1.13 Firm Point-To-Point Transmission Service: Transmission
Service under this Tariff that is reserved and/or scheduled between
specified Points of Receipt and Delivery pursuant to Part II of this
Tariff.
1.14 Good Utility Practice: Any of the practices, methods and acts
engaged in or approved by a significant portion of the electric utility
industry during the relevant time period, or any of the practices,
methods and acts which, in the exercise of reasonable judgment in light
of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost
consistent with good business practices, reliability, safety and
expedition. Good Utility 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.
[[Page 490]]
1.15 Interruption: A reduction in non-firm transmission service
due to economic reasons pursuant to Section 14.7.
1.16 Load Ratio Share: Ratio of a Transmission Customer's Network
Load to the Transmission Provider's total load computed in accordance
with Sections 34.2 and 34.3 of the Network Integration Transmission
Service under Part III of the Tariff and calculated on a rolling twelve
month basis.
1.17 Load Shedding: The systematic reduction of system demand by
temporarily decreasing load in response to transmission system or area
capacity shortages, system instability, or voltage control
considerations under Part III of the Tariff.
1.18 Long-Term Firm Point-To-Point Transmission Service: Firm
Point-To-Point Transmission Service under Part II of the Tariff with a
term of one year or more.
1.19 Native Load Customers: The wholesale and retail power
customers of the Transmission Provider on whose behalf the Transmission
Provider, by statute, franchise, regulatory requirement, or contract,
has undertaken an obligation to construct and operate the Transmission
Provider's system to meet the reliable electric needs of such
customers.
1.20 Network Customer: An entity receiving transmission service
pursuant to the terms of the Transmission Provider's Network
Integration Transmission Service under Part III of the Tariff.
1.21 Network Integration Transmission Service: The transmission
service provided under Part III of the Tariff.
1.22 Network Load: The load that a Network Customer designates for
Network Integration Transmission Service under Part III of the Tariff.
The Network Customer's Network Load shall include all load served by
the output of any Network Resources designated by the Network Customer.
A Network Customer may elect to designate less than its total load as
Network Load but may not designate only part of the load at a discrete
Point of Delivery. Where an Eligible Customer has elected not to
designate a particular load at discrete points of delivery as Network
Load, the Eligible Customer is responsible for making separate
arrangements under Part II of the Tariff for any Point-To-Point
Transmission Service that may be necessary for such non-designated
load.
1.23 Network Operating Agreement: An executed agreement that
contains the terms and conditions under which the Network Customer
shall operate its facilities and the technical and operational matters
associated with the implementation of Network Integration Transmission
Service under Part III of the Tariff.
1.24 Network Operating Committee: A group made up of
representatives from the Network Customer(s) and the Transmission
Provider established to coordinate operating criteria and other
technical considerations required for implementation of Network
Integration Transmission Service under Part III of this Tariff.
1.25 Network Resource: Any designated generating resource owned,
purchased, or leased by a Network Customer under the Network
Integration Transmission Service Tariff. Network Resources do not
include any resource, or any portion thereof, that is committed for
sale to third parties or otherwise cannot be called upon to meet the
Network Customer's Network Load on a non-interruptible basis.
1.26 Network Upgrades: Modifications or additions to transmission-
related facilities that are integrated with and support the
Transmission Provider's overall Transmission System for the general
benefit of all users of such Transmission System.
1.27 Non-Firm Point-To-Point Transmission Service: Point-To-Point
Transmission Service under the Tariff that is reserved and scheduled on
an as-available basis and is subject to Curtailment or Interruption as
set forth in Section 14.7 under Part II of the Tariff. Non-Firm Point-
To-Point Transmission Service is available on a stand-alone basis for
periods ranging from one hour to one month.
1.28 Open Access Same-Time Information System (OASIS): The
information system and standards of conduct contained in Part 37 of the
Commission's regulations and all additional requirements implemented by
subsequent Commission orders dealing with OASIS.
1.29 Part I: Tariff Definitions and Common Service Provisions
contained in Sections 2 through 12.
1.30 Part II: Tariff Sections 13 through 27 pertaining to Point-
To-Point Transmission Service in conjunction with the applicable Common
Service Provisions of Part I and appropriate Schedules and Attachments.
1.31 Part III: Tariff Sections 28 through 35 pertaining to Network
Integration Transmission Service in conjunction with the applicable
Common Service Provisions of Part I and appropriate Schedules and
Attachments.
1.32 Parties: The Transmission Provider and the Transmission
Customer receiving service under the Tariff.
1.33 Point(s) of Delivery: Point(s) on the Transmission Provider's
Transmission System where capacity and energy transmitted by the
Transmission Provider will be made available to the Receiving Party
under Part II of the Tariff. The Point(s) of Delivery shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.34 Point(s) of Receipt: Point(s) of interconnection on the
Transmission Provider's Transmission System where capacity and energy
will be made available to the Transmission Provider by the Delivering
Party under Part II of the Tariff. The Point(s) of Receipt shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Transmission Service.
1.35 Point-To-Point Transmission Service: The reservation and
transmission of capacity and energy on either a firm or non-firm basis
from the Point(s) of Receipt to the Point(s) of Delivery under Part II
of the Tariff.
1.36 Power Purchaser: The entity that is purchasing the capacity
and energy to be transmitted under the Tariff.
1.37 Receiving Party: The entity receiving the capacity and energy
transmitted by the Transmission Provider to Point(s) of Delivery.
1.38 Regional Transmission Group (RTG): A voluntary organization
of transmission owners, transmission users and other entities approved
by the Commission to efficiently coordinate transmission planning (and
expansion), operation and use on a regional (and interregional) basis.
1.39 Reserved Capacity: The maximum amount of capacity and energy
that the Transmission Provider agrees to transmit for the Transmission
Customer over the Transmission Provider's Transmission System between
the Point(s) of Receipt and the Point(s) of Delivery under Part II of
the Tariff. Reserved Capacity shall be expressed in terms of whole
megawatts on a sixty (60) minute interval (commencing on the clock
hour) basis.
1.40 Service Agreement: The initial agreement and any amendments
or supplements thereto entered into by the Transmission Customer and
the Transmission Provider for service under the Tariff.
1.41 Service Commencement Date: The date the Transmission Provider
begins to provide service pursuant to the terms of an executed Service
Agreement, or the date the Transmission Provider begins to provide
service in
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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 or 29.1
of the Tariff. This term is used in the Part I Common Service
Provisions to include customers receiving transmission service under
Part II and Part III of this Tariff.
1.46 Transmission Provider: Southwestern Power Administration,
which owns, controls, or operates the facilities used for the
transmission of electric energy in interstate commerce and provides
transmission service under the Tariff.
1.47 Transmission Provider's Monthly Transmission System Peak: The
maximum firm usage of the Transmission Provider's Transmission System
in a calendar month.
1.48 Transmission Service: Point-To-Point Transmission Service
provided under Part II of the Tariff on a firm and non-firm basis.
1.49 Transmission System: The facilities owned, controlled or
operated by the Transmission Provider that are used to provide
transmission service under Part II and Part III of the Tariff.
2 Initial Allocation and Renewal Procedures
2.1 Initial Allocation of Available Transmission Capability: For
purposes of determining whether existing capability on the Transmission
Provider's Transmission System is adequate to accommodate a request for
firm service under this Tariff, all Completed Applications for new firm
transmission service received during the initial sixty (60) day period
commencing with the effective date of the Tariff will be deemed to have
been filed simultaneously. A lottery system conducted by an independent
party shall be used to assign priorities for Completed Applications
filed simultaneously. All Completed Applications for firm transmission
service received after the initial sixty (60) day period shall be
assigned a priority pursuant to Section 13.2.
2.2 Reservation Priority For Existing Firm Service Customers:
Existing firm service customers (wholesale requirements and
transmission-only, with a contract term of one-year or more), have the
right to continue to take transmission service from the Transmission
Provider when the contract expires, rolls over or is renewed. This
transmission reservation priority is independent of whether the
existing customer continues to purchase capacity and energy from the
Transmission Provider or elects to purchase capacity and energy from
another supplier. If at the end of the contract term, the Transmission
Provider's Transmission System cannot accommodate all of the requests
for transmission service, the existing firm service customer must agree
to accept a contract term at least equal to a competing request by any
new Eligible Customer and to pay the current rate for such service.
This transmission reservation priority for existing firm service
customers is an ongoing right that may be exercised at the end of all
firm contract terms of one-year or longer.
3 Ancillary Services
Ancillary Services are needed with transmission service to maintain
reliability within and among the Control Areas affected by the
transmission service. The Transmission Provider is required to provide
(or offer to arrange with the local Control Area operator as discussed
below), and the Transmission Customer is required to purchase, the
following Ancillary Services (i) Scheduling, System Control and
Dispatch, and (ii) Reactive Supply and Voltage Control from Generation
Sources.
The Transmission Provider is required to offer to provide (or offer
to arrange with the local Control Area operator as discussed below) the
following Ancillary Services only to the Transmission Customer serving
load within the Transmission Provider's Control Area (i) Regulation and
Frequency Response, (ii) Energy Imbalance, (iii) Operating Reserve--
Spinning, and (iv) Operating Reserve--Supplemental. The Transmission
Customer serving load within the Transmission Provider's Control Area
is required to acquire these Ancillary Services, whether from the
Transmission Provider, from a third party, or by self-supply. The
Transmission Customer may not decline the Transmission Provider's offer
of Ancillary Services unless it demonstrates that it has acquired the
Ancillary Services from another source. However, when sufficient
Federal generation is not available to provide the required Ancillary
Services, the Transmission Provider will offer to make every effort to
purchase Ancillary Services from others, as available. The costs of
such purchases on behalf of a Transmission Customer will be passed
directly through to that Transmission Customer. The Transmission
Customer must list in its Application which Ancillary Services it will
purchase from the Transmission Provider.
If the Transmission Provider is a utility providing transmission
service, but is not a Control Area operator, it may be unable to
provide some or all of the Ancillary Services. In this case, the
Transmission Provider can fulfill its obligation to provide Ancillary
Services by acting as the Transmission Customer's agent to secure these
Ancillary Services from the Control Area operator. The Transmission
Customer may elect to (i) have the Transmission Provider act as its
agent, (ii) secure the Ancillary Services directly from the Control
Area operator, or (iii) secure the Ancillary Services (discussed in
Schedules 3, 4, 5, and 6) from a third party or by self-supply when
technically feasible.
The Transmission Provider shall specify the rate treatment and all
related terms and conditions in the event of an unauthorized use of
Ancillary Services by the Transmission Customer.
The specific Ancillary Services, prices and/or compensation methods
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
[[Page 492]]
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 in its Application a sworn statement of one
of its duly authorized officers or other representatives that the
purpose of its Application is not to assist an Eligible Customer to
avoid the requirements of this provision.
7 Billing and Payment
7.1 Billing Procedure: Within a reasonable time after the first
day of each month, the Transmission Provider shall submit an invoice to
the Transmission Customer for the charges for all services furnished
under the Tariff during the preceding month. The invoice shall be paid
by the Transmission Customer within twenty (20) days of receipt. All
payments shall be made in immediately available funds payable to the
Transmission Provider, or by wire transfer to a bank named by the
Transmission Provider.
7.2 Interest on Unpaid Balances: Interest on any unpaid amounts
(including amounts placed in escrow) shall be calculated in accordance
with the methodology specified for interest on refunds in the
Commission's regulations at 18 CFR 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,
Southwestern Power Administration. The Transmission Provider shall
[[Page 493]]
continue service until the Administrator makes a determination on the
Transmission Customer's appeal. Service may be terminated without
further notice if Transmission Customer's appeal is denied. 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.
7.4 Payment Process: Payment of amounts due to the Transmission
Provider may be made through electronic funds transfer (EFT) or may be
submitted as checks and mailed to:
Southwestern Power Administration
P.O. Box 845994
Dallas, Texas 75284-5994
EFT payments shall conform to the Transmission Provider's protocols
for electronic transfer of funds in effect at the time of the payment.
The designation of the address where payment is to be submitted may be
changed by the Transmission Provider upon 30 days' written notice to
the Transmission Customer. The Parties shall exchange such reports and
information as either Party requires for billing purposes.
7.5 Net Billing: By agreement of the Parties, payments due the
Transmission Provider by the Transmission Customer may be offset
against payments due the Transmission Customer by the Transmission
Provider for the sale or exchange of electric power, energy, and other
services. For services included in net billing procedures, payments due
the Transmission Customer in any month shall be offset against payments
due the Transmission Provider in such month, and the resulting net
balance shall be paid by the Transmission Customer when the balance
exists in favor of the Transmission Provider, and shall be applied
against future payments due the Transmission Provider when the balance
exists in favor of the Transmission Customer. Net billing procedures
shall not be used for any amounts which the Transmission Provider
determines, in its sole judgment, to be in dispute.
8 Accounting for the Transmission Provider's Use of the Tariff
The Transmission Provider shall record the following amounts, as
outlined below.
8.1 Transmission Revenues: Include in a separate operating revenue
account or subaccount the revenues it receives from Transmission
Service when making Third-Party Sales under Part II of the Tariff.
8.2 Study Costs and Revenues: Include in a separate transmission
operating expense account or subaccount, costs properly chargeable to
expense that are incurred to perform any System Impact Studies or
Facilities Studies which the Transmission Provider conducts to
determine if it must construct new transmission facilities or upgrades
necessary for its own uses, including making Third-Party Sales under
the Tariff; and include in a separate operating revenue account or
subaccount the revenues received for System Impact Studies or
Facilities Studies performed when such amounts are separately stated
and identified in the Transmission Customer's billing under the Tariff.
9 Regulatory Filings
Nothing contained in the Tariff or any Service Agreement shall be
construed as affecting in any way the ability of any Party receiving
service under the Tariff to exercise its rights under the Federal Power
Act and pursuant to the Commission's rules and regulations promulgated
thereunder.
10 Force Majeure and Indemnification
10.1 Force Majeure: An event of Force Majeure means any act of
God, labor disturbance, act of the public enemy, war, insurrection,
riot, fire, storm or flood, explosion, breakage or accident to
machinery or equipment, any Curtailment, order, regulation or
restriction imposed by governmental military or lawfully established
civilian authorities, or any other cause beyond a Party's control. A
Force Majeure event does not include an act of negligence or
intentional wrongdoing. Neither the Transmission Provider nor the
Transmission Customer will be considered in default as to any
obligation under this Tariff if prevented from fulfilling the
obligation due to an event of Force Majeure. However, a Party whose
performance under this Tariff is hindered by an event of Force Majeure
shall make all reasonable efforts to perform its obligations under this
Tariff.
10.2 Indemnification: The Transmission Customer shall at all times
indemnify, defend, and save the Transmission Provider harmless from,
any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property,
demands, suits, recoveries, costs and expenses, court costs, attorney
fees, and all other obligations by or to third parties, arising out of
or resulting from the Transmission Provider's performance of its
obligations under this Tariff on behalf of the Transmission Customer,
except in cases of negligence or intentional wrongdoing by the
Transmission Provider. The liability of the Transmission Provider shall
be determined in accordance with the provisions of the Federal Tort
Claims Act, as amended.
11 Creditworthiness
For the purpose of determining the ability of the Transmission
Customer to meet its obligations related to service hereunder, the
Transmission Provider may require reasonable credit review procedures.
This review shall be made in accordance with standard commercial
practices. In addition, the Transmission Provider may require the
Transmission Customer to provide and maintain in effect during the term
of the Service Agreement, an unconditional and irrevocable letter of
credit as security to meet its responsibilities and obligations under
the Tariff, or an alternative form of security proposed by the
Transmission Customer and acceptable to the Transmission Provider and
consistent with commercial practices established by the Uniform
Commercial Code that protects the Transmission Provider against the
risk of non-payment.
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures: Any dispute between a
Transmission Customer and the Transmission Provider involving
transmission service under the Tariff shall be referred to a designated
senior representative of the Transmission Provider and a senior
representative of the Transmission Customer for resolution on an
informal basis as promptly as practicable. In the event the designated
representatives are unable to resolve the dispute within thirty (30)
days (or such other period as the Parties may agree upon) by mutual
agreement, such dispute may be resolved in accordance with the
procedures set forth below.
12.2 External Dispute Resolution Procedures: Any complaint arising
concerning implementation of this Tariff shall be resolved as follows:
[[Page 494]]
(A) Through a dispute resolution process, pursuant to the terms of
a regional transmission association governing agreement of which both
Parties are members; or
(B) If both Parties are not members of the same regional
transmission association, through a dispute resolution process agreed
to by the Parties, or through a transmission complaint filed with the
Commission, to the extent the Commission has jurisdiction over such
dispute.
12.3 Alternative Disputes Resolution Act: Any dispute regarding
service provided under the Service Agreement will be resolved in a
manner consistent with the Administrative Disputes Resolution Act, as
amended, subject to statutory and regulatory limits on the Transmission
Provider's authority to submit disputes to arbitration.
12.4 Rights Under The Federal Power Act: Nothing in this section
shall restrict the rights of any party to file a Complaint with the
Commission under relevant provisions of the Federal Power Act.
Part II. Point-to-Point Transmission Service
Preamble
The Transmission Provider will provide Firm and Non-Firm Point-To-
Point Transmission Service pursuant to the applicable terms and
conditions of this Tariff. Point-To-Point Transmission Service is for
the receipt of capacity and energy at designated Point(s) of Receipt
and the transmission of such capacity and energy to designated Point(s)
of Delivery.
13 Nature of Firm Point-To-Point Transmission Service
13.1 Term: The minimum term of Firm Point-To-Point Transmission
Service shall be one day and the maximum term shall be specified in the
Service Agreement.
13.2 Reservation Priority: Long-Term Firm Point-To-Point
Transmission Service shall be available on a first-come, first-served
basis i.e., in the chronological sequence in which each Transmission
Customer reserved service. Reservations for Short-Term Firm Point-To-
Point Transmission Service will be conditional based upon the length of
the requested transaction. If the Transmission System becomes
oversubscribed, requests for longer term service may preempt requests
for shorter term service up to the following deadlines; one day before
the commencement of daily service, one week before the commencement of
weekly service, and one month before the commencement of monthly
service. Before the conditional reservation deadline, if available
transmission capability is insufficient to satisfy all Applications, an
Eligible Customer with a reservation for shorter term service has the
right of first refusal to match any longer term reservation before
losing its reservation priority. A longer term competing request for
Short-Term Firm Point-To-Point Transmission Service will be granted if
the Eligible Customer with the right of first refusal does not agree to
match the competing request within 24 hours (or earlier if necessary to
comply with the scheduling deadlines provided in Section 13.8) from
being notified by the Transmission Provider of a longer-term competing
request for Short-Term Firm Point-To-Point Transmission Service. After
the conditional reservation deadline, service will commence pursuant to
the terms of Part II of the Tariff. Firm Point-To-Point Transmission
Service will always have a reservation priority over Non-Firm Point-To-
Point Transmission Service under the Tariff. All Long-Term Firm Point-
To-Point Transmission Service will have equal reservation priority with
Native Load Customers and Network Customers. Reservation priorities for
existing firm service customers are provided in Section 2.2.
13.3 Use of Firm Transmission Service by the Transmission
Provider: The Transmission Provider will be subject to the rates, terms
and conditions of Part II of the Tariff when making Third-Party Sales
under agreements executed on or after March 9, 1998. The Transmission
Provider will maintain separate accounting, pursuant to Section 8, for
any use of the Point-To-Point Transmission Service to make Third-Party
Sales.
13.4 Service Agreements: The Transmission Provider shall offer a
standard form Firm Point-To-Point Transmission Service Agreement
(Attachment A) to an Eligible Customer when it submits a Completed
Application for Long-Term Firm Point-To-Point Transmission Service. The
Transmission Provider shall offer a standard form Firm Point-to-Point
Transmission Service Agreement (Attachment B) 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, and subject to the Transmission
Provider's authority under Federal law to complete the expansion or
upgrade. The Transmission Customer must agree to compensate the
Transmission Provider in advance for any necessary transmission
facility additions pursuant to the terms of Section 27. To the extent
the Transmission Provider can relieve any system constraint more
economically by redispatching the Transmission Provider's resources
than through constructing Network Upgrades, it shall do so, provided
that the Eligible Customer agrees to compensate the Transmission
Provider pursuant to the terms of Section 27. Any redispatch, Network
Upgrade or Direct Assignment Facilities costs to be charged to the
Transmission Customer on an incremental basis under the Tariff will be
specified in the Service Agreement or a separate agreement, as
appropriate, prior to initiating service.
13.6 Curtailment of Firm Transmission Service: In the event that a
Curtailment on the Transmission Provider's Transmission System, or a
portion thereof, is required to maintain reliable operation of such
system, Curtailments will be made on a non-discriminatory basis to the
transaction(s) that effectively relieve the constraint. If multiple
transactions require Curtailment, to the extent practicable and
consistent with Good Utility Practice, the Transmission Provider will
curtail service to Network Customers and Transmission Customers taking
Firm Point-To-Point Transmission Service on a basis comparable to the
curtailment of service to the Transmission Provider's Native Load
Customers. All Curtailments will be made on a non-discriminatory basis;
however, Non-Firm Point-To-Point Transmission Service shall be
subordinate to Firm Transmission Service. When the Transmission
Provider determines that an electrical emergency exists on its
Transmission System and implements emergency procedures to Curtail Firm
Transmission Service, the Transmission Customer shall make the required
reductions upon request of the Transmission Provider. However, the
[[Page 495]]
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 2:00 p.m. of the day prior to commencement of such service.
Schedules submitted after 2:00 p.m. will be accommodated, if
practicable. Hour-to-hour schedules of any capacity and energy that is
to be delivered must be stated in increments of 1,000 kW per hour.
Transmission Customers within the Transmission Provider's service area
with multiple requests for Transmission Service at a Point of Receipt,
each of which is under 1,000 kW per hour, may consolidate their service
requests at a common point of receipt into units of 1,000 kW per hour
for scheduling and billing purposes.
Scheduling changes will be permitted up to twenty (20) minutes
before the start of the next clock hour provided that the Delivering
Party and Receiving Party also agree to the schedule modification. The
Transmission Provider will furnish to the Delivering Party's system
operator, hour-to-hour schedules equal to those furnished by the
Receiving Party (unless reduced for losses) and shall deliver the
capacity and energy provided by such schedules. Should the Transmission
Customer, Delivering Party or Receiving Party revise or terminate any
schedule, such party shall immediately notify the Transmission
Provider, and the Transmission Provider shall have the right to adjust
accordingly the schedule for capacity and energy to be received and to
be delivered.
14 Nature of Non-Firm Point-To-Point Transmission Service
14.1 Term: Non-Firm Point-To-Point Transmission Service will be
available for periods ranging from one (1) hour to one (1) month.
However, a Purchaser of Non-Firm Point-To-Point Transmission Service
will be entitled to reserve a sequential term of service (such as a
sequential monthly term without having to wait for the initial term to
expire before requesting another monthly term) so that the total time
period for which the reservation applies is greater than one month,
subject to the requirements of Section 18.3.
14.2 Reservation Priority: Non-Firm Point-To-Point Transmission
Service shall be available from transmission capability in excess of
that needed for reliable service to Native Load Customers, Network
Customers, and other Transmission Customers taking Long-Term and Short-
Term Firm Point-To-Point Transmission Service. A higher priority will
be assigned to reservations with a longer duration of service. In the
event the Transmission System is constrained, competing requests of
equal duration will be prioritized based on the highest price offered
by the Eligible Customer for the Transmission Service. Eligible
Customers that have already reserved shorter term service have the
right of first refusal to match any longer term reservation before
being preempted. A longer term competing request for Non-Firm Point-To-
Point Transmission Service will be granted if the Eligible Customer
with the right of first refusal does not agree to match the competing
request: (a) Immediately for hourly Non-Firm Point-To-Point
Transmission Service after notification by the Transmission Provider;
and, (b) within 24 hours (or earlier if necessary to comply with the
scheduling deadlines provided in Section 14.6) for Non-Firm Point-To-
Point Transmission Service other than hourly transactions after
notification by the Transmission Provider. Transmission service for
Network Customers from resources other than designated Network
Resources will have a higher priority than any Non-Firm Point-To-Point
Transmission Service. Non-Firm Point-To-Point Transmission Service over
secondary Point(s) of Receipt and Point(s) of Delivery will have the
lowest reservation priority under the Tariff.
14.3 Use of Non-Firm Point-To-Point Transmission Service by the
Transmission Provider: The Transmission Provider will be subject to the
rates, terms and conditions of Part II of the Tariff when making Third-
Party Sales under agreements executed on or after March 9, 1998. The
Transmission Provider will maintain separate accounting, pursuant to
Section 8, for any use of Non-Firm Point-To-Point Transmission Service
to make Third-Party Sales.
14.4 Service Agreements: The Transmission Provider shall offer a
standard form Non-Firm Point-To-Point Transmission Service Agreement
(Attachment B) to an Eligible Customer when it first submits a
Completed
[[Page 496]]
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. of the
day prior to commencement of such service. Schedules submitted after
2:00 p.m. will be accommodated, if practicable. Hour-to-hour schedules
of energy that are to be delivered must be stated in increments of
1,000 kW per hour. Transmission Customers within the Transmission
Provider's service area with multiple requests for Transmission Service
at a Point of Receipt, each of which is under 1,000 kW per hour, may
consolidate their schedules at a common Point of Receipt into units of
1,000 kW per hour. Scheduling changes will be permitted up to twenty
(20) minutes before the start of the next clock hour provided that the
Delivering Party and Receiving Party also agree to the schedule
modification. The Transmission Provider will furnish to the Delivering
Party's system operator, hour-to-hour schedules equal to those
furnished by the Receiving Party (unless reduced for losses) and shall
deliver the capacity and energy provided by such schedules. Should the
Transmission Customer, Delivering Party or Receiving Party revise or
terminate any schedule, such party shall immediately notify the
Transmission Provider, and the Transmission Provider shall have the
right to adjust accordingly the schedule for capacity and energy to be
received and to be delivered.
14.7 Curtailment or Interruption of Service: The Transmission
Provider reserves the right to Curtail, in whole or in part, Non-Firm
Point-To-Point Transmission Service provided under the Tariff for
reliability reasons when an emergency or other unforeseen condition
threatens to impair or degrade the reliability of its Transmission
System. The Transmission Provider reserves the right to Interrupt, in
whole or in part, Non-Firm Point-To-Point Transmission Service provided
under the Tariff for economic reasons in order to accommodate (1) a
request for Firm Transmission Service, (2) a request for Non-Firm
Point-To-Point Transmission Service of greater duration, (3) a request
for Non-Firm Point-To-Point Transmission Service of equal duration with
a higher price, or (4) transmission service for Network Customers from
non-designated resources. The Transmission Provider also will
discontinue or reduce service to the Transmission Customer to the
extent that deliveries for transmission are discontinued or reduced at
the Point(s) of Receipt. Where required, Curtailments or Interruptions
will be made on a non-discriminatory basis to the transaction(s) that
effectively relieve the constraint; however, Non-Firm Point-To-Point
Transmission Service shall be subordinate to Firm Transmission Service.
If multiple transactions require Curtailment or Interruption, to the
extent practicable and consistent with Good Utility Practice,
Curtailments or Interruptions will be made to transactions of the
shortest term (e.g., hourly non-firm transactions will be Curtailed or
Interrupted before daily non-firm transactions and daily non-firm
transactions will be Curtailed or Interrupted before weekly non-firm
transactions). Transmission service for Network Customers from
resources other than designated Network Resources will have a higher
priority than any Non-Firm Point-To-Point Transmission Service under
the Tariff. Non-Firm Point-To-Point Transmission Service over secondary
Point(s) of Receipt and Point(s) of Delivery will have a lower priority
than any Non-Firm Point-To-Point Transmission Service under the Tariff.
The Transmission Provider will provide advance notice of Curtailment or
Interruption where such notice can be provided consistent with Good
Utility Practice.
15 Service Availability
15.1 General Conditions: The Transmission Provider will provide
Firm and Non-Firm Point-To-Point Transmission Service over, on or
across its Transmission System to any Transmission Customer that has
met the requirements of Section 16.
15.2 Determination of Available Transmission Capability: A
description of the Transmission Provider's specific methodology for
assessing available transmission capability posted on the Transmission
Provider's OASIS (Section 4) is contained in Attachment C of the
Tariff. In the event sufficient transmission capability may not exist
to accommodate a service request, the Transmission Provider will
respond by performing a System Impact Study.
15.3 Initiating Service in the Absence of an Executed Service
Agreement: If the Transmission Provider and the Transmission Customer
requesting Firm or Non-Firm Point-To-Point Transmission Service cannot
agree on all the terms and conditions of the Point-To-Point Service
Agreement, the Transmission Provider shall commence providing
Transmission Service subject to the Transmission Customer agreeing to
(i) compensate the Transmission Provider at the existing rate placed in
effect pursuant to Federal law, regulations, and policies, 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
[[Page 497]]
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 Transmission Provider's rate schedule for
transmission service, and may be adjusted, from time to time, in
accordance with the results of periodic studies.
16 Transmission Customer Responsibilities
16.1 Conditions Required of Transmission Customers: Point-To-Point
Transmission Service shall be provided by the Transmission Provider
only if the following conditions are satisfied by the Transmission
Customer:
a. The Transmission Customer has pending a Completed Application
for service;
b. The Transmission Customer meets the creditworthiness criteria
set forth in Section 11;
c. The Transmission Customer will have arrangements in place for
any other transmission service necessary to effect the delivery from
the generating source to the Transmission Provider prior to the time
service under Part II of the Tariff commences;
d. The Transmission Customer agrees to pay for any facilities
constructed and chargeable to such Transmission Customer under Part II
of the Tariff, whether or not the Transmission Customer takes service
for the full term of its reservation; and
e. The Transmission Customer has executed a Point-To-Point Service
Agreement or has agreed to receive service pursuant to Section 15.3.
16.2 Transmission Customer Responsibility for Third-Party
Arrangements: Any scheduling arrangements that may be required by other
electric systems shall be the responsibility of the Transmission
Customer requesting service. The Transmission Customer shall provide,
unless waived by the Transmission Provider, notification to the
Transmission Provider identifying such systems and authorizing them to
schedule the capacity and energy to be transmitted by the Transmission
Provider pursuant to Part II of the Tariff on behalf of the Receiving
Party at the Point of Delivery or the Delivering Party at the Point of
Receipt. However, the Transmission Provider will undertake reasonable
efforts to assist the Transmission Customer in making such
arrangements, including, without limitation, providing any information
or data required by such other electric system pursuant to Good Utility
Practice.
17 Procedures for Arranging Firm Point-To-Point Transmission Service
17.1 Application: A request for Firm Point-To-Point Transmission
Service for periods of one year or longer must contain a written
Application to Administrator, Southwestern Power Administration, One
West Third Street, Suite 1400, Tulsa, Oklahoma 74103, 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.
17.2Completed Application: A Completed Application shall provide
all of the information included in 18 CFR 2.20 including but not
limited to the following:
(i) The identity, address, telephone number and facsimile number of
the entity requesting service;
(ii) A statement that the entity requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
(iii) The location of the Point(s) of Receipt and Point(s) of
Delivery and the identities of the Delivering Parties and the Receiving
Parties;
(iv) The location of the generating facility(ies) supplying the
capacity and energy and the location of the load ultimately served by
the capacity and energy transmitted. The Transmission Provider will
treat this information as confidential except to the extent that
disclosure of this information is required by the Tariff, by Federal
law, by regulatory or judicial order, for reliability purposes pursuant
to Good Utility Practice or pursuant to RTG transmission information
sharing agreements. The Transmission Provider shall treat this
information consistent with the standards of conduct contained in Part
37 of the Commission's regulations;
(v) A description of the supply characteristics of the capacity and
energy to be delivered;
(vi) An estimate of the capacity and energy expected to be
delivered to the Receiving Party;
(vii) The Service Commencement Date and the term of the requested
Transmission Service; and
(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 nonrefundable
processing fee of $300 for all requests for Firm Transmission Service
of one year or longer. 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
[[Page 498]]
(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 requested at each Point of
Receipt and Point of Delivery; and
(v) The proposed dates and hours for initiating and terminating
transmission service hereunder.
In addition to the information specified above, when required to
properly evaluate system conditions, the Transmission Provider also may
ask the Transmission Customer to provide the following:
(vi) The electrical location of the initial source of the power to
be transmitted pursuant to the Transmission Customer's request for
service;
(vii) The electrical location of the ultimate load.
The Transmission Provider will treat this information in (vi) and
(vii) as confidential at the request of the Transmission Customer
except to the extent that disclosure of this information is required by
this Tariff, by Federal law, by regulatory or judicial order, for
reliability purposes pursuant to Good Utility Practice, or pursuant to
RTG transmission information sharing agreements. The Transmission
Provider shall treat this information consistent with the standards of
conduct contained in Part 37 of the Commission's regulations.
18.3 Reservation of Non-Firm Point-To-Point Transmission Service:
Requests for monthly service shall be submitted no earlier than sixty
(60) days before service is to commence; requests for weekly service
shall be submitted no earlier than fourteen (14) days before service is
to commence; requests for daily service shall be submitted no earlier
than two (2) days before service is to commence; and requests for
hourly service shall be submitted no earlier than noon the day before
service is to commence. Requests for service received later than 2:00
p.m. prior to the day service is scheduled to commence will be
accommodated if practicable.
18.4 Determination of Available Transmission Capability: Following
receipt of a tendered schedule the Transmission Provider will make a
determination on a non-discriminatory basis of available transmission
capability pursuant to Section 15.2. Such determination shall be made
as soon as reasonably practicable after receipt, but not later than the
following time periods for the following terms of service: (i) thirty
(30) minutes for hourly service, (ii) thirty (30) minutes for daily
service, (iii) four (4) hours for weekly service, and (iv) two (2) days
for monthly service.
19 Additional Study Procedures for Firm Point-to-Point Transmission
Service Requests
19.1 Notice of Need for System Impact Study: After receiving a
request for service, the Transmission Provider shall determine on a
non-discriminatory basis whether a System Impact Study is needed. A
description of the Transmission Provider's methodology for completing a
System Impact Study is provided in Attachment D. If the Transmission
Provider determines that a System Impact Study is necessary to
accommodate the requested service, it
[[Page 499]]
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 additions or upgrades to the Transmission System are
needed to supply the Eligible Customer's service request, the
Transmission Provider, within thirty (30) days of the completion of the
System Impact Study, shall tender to the Eligible Customer a Facilities
Study Agreement pursuant to which the Eligible Customer shall agree to
advance funds to the Transmission Provider for performing the required
Facilities Study. For a service request to remain a Completed
Application, the Eligible Customer shall execute the Facilities Study
Agreement and return it to the Transmission Provider within fifteen
(15) days. If the Eligible Customer elects not to execute the
Facilities Study Agreement, its application shall be deemed withdrawn.
Upon receipt of an executed Facilities Study Agreement, the
Transmission Provider will use due diligence to complete the required
Facilities Study within a sixty (60) day period. If the Transmission
Provider is unable to complete the Facilities Study in the allotted
time period, the Transmission Provider shall notify the Transmission
Customer and provide an estimate of the time needed to reach a final
determination along with an explanation of the reasons that additional
time is required to complete the study. When completed, the Facilities
Study will include a good faith estimate of (i) the cost of Direct
Assignment Facilities to be charged to the Transmission Customer, (ii)
the Transmission Customer's appropriate share of the cost of any
required Network Upgrades as determined pursuant to the provisions of
Part II of the Tariff, and (iii) the time required to complete such
construction and initiate the requested service. The Transmission
Customer shall pay the Transmission Provider, in advance, the
Transmission Customer's share of the costs of new facilities or
upgrades. The Transmission Customer shall have thirty (30) days to
execute a construction agreement and a Service Agreement and to provide
the advance payment or request service without an executed Service
Agreement pursuant to Section 15.3, and pay the Transmission Customer's
share of the costs, or the request will no longer be a Completed
Application and shall be deemed terminated and withdrawn. Any advance
payment made by the Transmission Customer which is in excess of the
costs incurred by the Transmission Provider shall be refunded.
19.5 Facilities Study Modifications. Any change in design arising
from inability to site or construct facilities as proposed will require
development of a revised good faith estimate. New good faith estimates
also will be required in the event of new statutory or regulatory
requirements that are effective before the completion of construction
or other circumstances beyond the control of the Transmission Provider
that significantly affect the final cost of new facilities or upgrades
to be charged to the Transmission Customer pursuant to the provisions
of Part II of the Tariff.
19.6 Due Diligence in Completing New Facilities. The Transmission
Provider shall use due diligence to add necessary facilities or upgrade
its Transmission System within a reasonable time. The Transmission
Provider will not upgrade its existing or planned Transmission System
in order to provide the requested Firm Point-To-Point Transmission
Service if doing so would impair system reliability or otherwise impair
or degrade existing firm service.
19.7 Partial Interim Service. If the Transmission Provider
determines that it will not have adequate transmission capability to
satisfy the full amount of a Completed Application for Firm Point-To-
Point Transmission Service, the Transmission Provider nonetheless shall
be obligated to offer and provide the portion of the requested Firm
Point-To-Point Transmission Service that can be accommodated without
addition of any
[[Page 500]]
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
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.
[[Page 501]]
(b) The sum of all Firm and non-firm Point-To-Point Transmission
Service provided to the Transmission Customer at any time pursuant to
this section shall not exceed the Reserved Capacity in the relevant
Service Agreement under which such services are provided.
(c) The Transmission Customer shall retain its right to schedule
Firm Point-To-Point Transmission Service at the Receipt and Delivery
Points specified in the relevant Service Agreement in the amount of its
original capacity reservation.
(d) Service over Secondary Receipt and Delivery Points on a non-
firm basis shall not require the filing of an Application for Non-Firm
Point-To-Point Transmission Service under the Tariff. However, all
other requirements of Part II of the Tariff (except as to transmission
rates) shall apply to transmission service on a non-firm basis over
Secondary Receipt and Delivery Points.
22.2 Modifications on a Firm Basis: Any request by a Transmission
Customer to modify Receipt and Delivery Points on a firm basis shall be
treated as a new request for service in accordance with Section 17
hereof except that such Transmission Customer shall not be obligated to
pay any additional application processing fee if the capacity
reservation does not exceed the amount reserved in the existing Service
Agreement. While such new request is pending, the Transmission Customer
shall retain its priority for service at the existing firm Receipt and
Delivery Points specified in its Service Agreement.
23 Sale or Assignment of Transmission Service
23.1 Procedures for Assignment or Transfer of Service: Subject to
Commission approval of any necessary filings, a Transmission Customer
may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the
Assignee). The Transmission Customer that sells, assigns or transfers
its rights under its Service Agreement is hereafter referred to as the
Reseller. Compensation to the Reseller shall not exceed the higher of
(i) the original rate paid by the Reseller, (ii) the Transmission
Provider's maximum rate on file at the time of the assignment, or (iii)
the Reseller's opportunity cost capped at the Transmission Provider's
cost of expansion. If the Assignee does not request any change in the
Point(s) of Receipt or the Point(s) of Delivery, or a change in any
other term or condition set forth in the original Service Agreement,
the Assignee will receive the same services as did the Reseller and the
priority of service for the Assignee will be the same as that of the
Reseller. A Reseller should notify the Transmission Provider as soon as
possible after any assignment or transfer of service occurs but in any
event, notification must be provided prior to any provision of service
to the Assignee. The Assignee will be subject to all terms and
conditions of the Tariff. If the Assignee requests a change in service,
the reservation priority of service will be determined by the
Transmission Provider pursuant to Section 13.2.
23.2 Limitations on Assignment or Transfer of Service: If the
Assignee requests a change in the Point(s) of Receipt or Point(s) of
Delivery, or a change in any other specifications set forth in the
original Service Agreement, the Transmission Provider will consent to
such change subject to the provisions of the Tariff, provided that the
change will not impair the operation and reliability of the
Transmission Provider's generation, transmission, or distribution
systems. The Assignee shall compensate the Transmission Provider in
advance for performing any System Impact Study needed to evaluate the
capability of the Transmission System to accommodate the proposed
change and any additional costs resulting from such change. The
Reseller shall remain liable for the performance of all obligations
under the Service Agreement, except as specifically agreed to by the
Parties through an amendment to the Service Agreement.
23.3 Information on Assignment or Transfer of Service: In
accordance with Section 4, Resellers may use the Transmission
Provider's OASIS to post transmission capacity available for resale.
24 Metering and Power Factor Correction at Receipt and Delivery
Point(s)
24.1 Transmission Customer Obligations: Unless otherwise agreed,
the Transmission Customer shall be responsible for installing and
maintaining compatible metering and communications equipment to
accurately account for the capacity and energy being transmitted under
Part II of the Tariff and to communicate the information to the
Transmission Provider. Such equipment shall remain the property of the
Transmission Customer.
24.2 Transmission Provider Access to Metering Data: The
Transmission Provider shall have access to metering data, which may
reasonably be required to facilitate measurements and billing under the
Service Agreement.
24.3 Power Factor: Unless otherwise agreed, the Transmission
Customer is required to maintain a power factor within the same range
as the Transmission Provider pursuant to Good Utility Practices. The
power factor requirements are specified in the Transmission Provider's
rate schedule for transmission service.
25 Compensation for Transmission Service
Rates for Firm and Non-Firm Point-To-Point Transmission Service are
provided in the Transmission Provider's rate schedule for transmission
service which is promulgated, and may be modified, pursuant to
applicable Federal law, regulations, and policies. 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
rates.
26 Stranded Cost Recovery
The Transmission Provider may seek to recover stranded costs from
the Transmission Customer pursuant to this Tariff in accordance with
the terms, conditions, and procedures set forth in FERC Order No. 888,
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
[[Page 502]]
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 transmission
capacity to deliver the Network Customer's Network Resources to serve
its Network Load is contingent upon the availability to the
Transmission Provider of sufficient appropriations, when needed, and
the Transmission Customer's advanced funds.
28.3 Network Integration Transmission Service: The Transmission
Provider will provide firm transmission service over its Transmission
System to the Network Customer for the delivery of capacity and energy
from its designated Network Resources to service its Network Loads on a
basis that is comparable to the Transmission Provider's use of the
Transmission System to reliably serve its Native Load Customers.
28.4 Secondary Service: The Network Customer may use the
Transmission Provider's Transmission System to deliver energy to its
Network Loads from resources that have not been designated as Network
Resources. Such energy shall be transmitted, on an as-available basis,
at no additional charge. Deliveries from resources other than Network
Resources will have a higher priority than any Non-Firm Point-To-Point
Transmission Service under Part II of the Tariff.
28.5 Real Power Losses: Real Power Losses are associated with all
transmission service. The Transmission Provider is not obligated to
provide Real Power Losses. The Network Customer is responsible for
replacing losses associated with all transmission service as calculated
by the Transmission Provider. The applicable Real Power Loss factors
are specified in the Transmission Provider's rate schedule for
transmission service, and may be adjusted, from time to time, in
accordance with the results of periodic studies.
28.6 Restrictions on Use of Service: The Network Customer shall
not use Network Integration Transmission Service for (i) sales of
capacity and energy to non-designated loads, or (ii) direct or indirect
provision of transmission service by the Network Customer to third
parties. All Network Customers taking Network Integration Transmission
Service shall use Point-To-Point Transmission Service under Part II of
the Tariff for any Third-Party Sale which requires use of the
Transmission Provider's Transmission System.
29 Initiating Service
29.1 Condition Precedent for Receiving Service: Subject to the
terms and conditions of Part III of the Tariff, the Transmission
Provider will provide Network Integration Transmission Service to any
Eligible Customer provided that (i) the Eligible Customer completes an
Application for service as provided under Part III of the Tariff, (ii)
the Eligible Customer and the Transmission Provider complete the
technical arrangements set forth in Sections 29.3 and 29.4, (iii) the
Eligible Customer executes a Service Agreement pursuant to Attachment F
for service under Part III of the Tariff or requests in writing that
the Transmission Provider provide service without an executed Service
Agreement, and (iv) the Eligible Customer executes a Network Operating
Agreement with the Transmission Provider pursuant to Attachment G. If
the Transmission Provider and the Network Customer cannot agree on all
the terms and conditions of the Network Service Agreement, the
Transmission Provider shall commence providing Network Integration
Transmission Service subject to the Network Customer's agreeing to (i)
compensate the Transmission Provider at the existing rate placed in
effect pursuant to applicable Federal law, regulations, and policies,
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
[[Page 503]]
Provider's time-recorded telephone line. Each of these methods will
provide a time-stamped record for establishing the service priority of
the Application. A Completed Application for Network Integration
Transmission Service shall include a non-refundable application
processing fee of $1,200. 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;
--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; and
(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's 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.
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
noninterruptible basis. Any owned or purchased resources that were
serving the Network Customer's loads under firm agreements entered into
on or before the Service
[[Page 504]]
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, nondiscriminatory basis between all Network
Customers, and the Transmission Provider.
30.6 Transmission Arrangements for Network Resources Not
Physically Interconnected With The Transmission Provider: The Network
Customer shall be responsible for any arrangements necessary to deliver
capacity and energy from a Network Resource not physically
interconnected with the Transmission Provider's Transmission System.
The Transmission Provider will undertake reasonable efforts to assist
the Network Customer in obtaining such arrangements, including without
limitation, providing any information or data required by such other
entity pursuant to Good Utility Practice.
30.7 Limitation on Designation of Network Resources: The Network
Customer must demonstrate that it owns or has committed to purchase
generation pursuant to an executed contract in order to designate a
generating resource as a Network Resource. Alternatively, the Network
Customer may establish that execution of a contract is contingent upon
the availability of transmission service under Part III of the Tariff.
30.8 Use of Interface Capacity by the Network Customer: There is
no limitation upon a Network Customer's use of the Transmission
Provider's Transmission System at any particular interface to integrate
the Network Customer's Network Resources (or substitute economy
purchases) with its Network Loads. However, a Network Customer's use of
the Transmission Provider's total interface capacity with other
transmission systems may not exceed the Network Customer's Load.
30.9 Network Customer Owned Transmission Facilities: The Network
Customer that owns existing transmission facilities that are integrated
with the Transmission Provider's Transmission System may be eligible to
receive consideration either through a billing credit or some other
mechanism. In order to receive such consideration the Network Customer
must demonstrate that its transmission facilities are integrated into
the plans or operations of the Transmission Provider to serve its power
and transmission customers. For facilities constructed by the Network
Customer subsequent to the Service Commencement Date under Part III of
the Tariff, the Network Customer shall receive credit where such
facilities are jointly planned and installed in coordination with the
Transmission Provider. Calculation of the credit shall be addressed in
either the Network Customer's Service Agreement or any other agreement
between the Parties.
31 Designation of Network Load
31.1 Network Load: The Network Customer must designate the
individual Network Loads on whose behalf the Transmission Provider will
provide Network Integration Transmission Service. The Network Loads
shall be specified in the Service Agreement.
31.2 New Network Loads Connected With the Transmission Provider:
The Network Customer shall provide the Transmission Provider with as
much advance notice as reasonably practicable of the designation of new
Network Load that will be added to its Transmission System. A
designation of new Network Load must be made through a modification of
service pursuant to a new Application. The Transmission Provider will
use due diligence to install any transmission facilities required to
interconnect a new Network Load designated by the Network Customer. The
costs of new facilities required to interconnect a new Network Load
shall be determined in accordance with the procedures provided in
Section 32.4 and shall be charged to the Network Customer in accordance
with Commission policies.
31.3 Network Load Not Physically Interconnected with the
Transmission Provider: This section applies to both initial designation
pursuant to Section 31.1 and the subsequent addition of new Network
Load not physically interconnected with the Transmission Provider. To
the extent that the Network Customer desires to obtain transmission
service for a load outside the Transmission Provider's Transmission
System, the Network Customer shall have the option of (1) electing to
include the entire load as Network Load for all purposes under Part III
of the Tariff and designating Network Resources in connection with such
additional Network Load, or (2) excluding that entire load from its
Network Load and purchasing Point-To-Point Transmission Service under
Part II of the Tariff. To the extent that the Network Customer gives
notice of its intent to add a new Network Load as part of its Network
Load pursuant to this section the request must be made through a
modification of service pursuant to a new Application.
31.4 New Interconnection Points: To the extent the Network
Customer desires to add a new Delivery Point or interconnection point
between the Transmission Provider's Transmission System and a Network
Load, the Network Customer shall provide the Transmission Provider with
as much advance notice as reasonably practicable.
31.5 Changes in Service Requests: Under no circumstances shall the
Network Customer's decision to cancel or delay a requested change in
Network Integration Transmission Service (e.g. the addition of a new
Network Resource or designation of a new Network Load) in any way
relieve the Network Customer of its obligation to pay the costs of
transmission facilities constructed by the Transmission Provider and
charged to the Network Customer as reflected in the Service Agreement.
However, the Transmission Provider must treat any requested change in
Network Integration Transmission Service in a non-discriminatory
manner. The Transmission Provider will have no
[[Page 505]]
obligation to refund any advance of funds expended for purposes of
providing facilities for a Network Customer. However, upon receipt of a
Network Customer's written notice of such a cancellation or delay, the
Transmission Provider will use the same reasonable efforts to mitigate
the costs and charges owed to the Transmission Provider as it would to
reduce its own costs and charges.
31.6 Annual Load and Resource Information Updates: The Network
Customer shall provide the Transmission Provider with annual updates of
Network Load and Network Resource forecasts consistent with those
included in its Application for Network Integration Transmission
Service under Part III of the Tariff. The Network Customer also shall
provide the Transmission Provider with timely written notice of
material changes in any other information provided in its Application
relating to the Network Customer's Network Load, Network Resources, its
transmission system or other aspects of its facilities or operations
affecting the Transmission Provider's ability to provide reliable
service.
32 Additional Study Procedures for Network Integration Transmission
Service Requests
32.1 Notice of Need for System Impact Study: After receiving a
request for service, the Transmission Provider shall determine on a
non-discriminatory basis whether a System Impact Study is needed. A
description of the Transmission Provider's methodology for completing a
System Impact Study is provided in Attachment D. If the Transmission
Provider determines that a System Impact Study is necessary to
accommodate the requested service, it shall so inform the Eligible
Customer, as soon as practicable. In such cases, the Transmission
Provider shall within thirty (30) days of receipt of a Completed
Application, tender a System Impact Study Agreement pursuant to which
the Eligible Customer shall agree to advance funds to the Transmission
Provider for performing the required System Impact Study. For a service
request to remain a Completed Application, the Eligible Customer shall
execute the System Impact Study Agreement and return it to the
Transmission Provider within fifteen (15) days. If the Eligible
Customer elects not to execute the System Impact Study Agreement, its
Application shall be deemed withdrawn.
32.2 System Impact Study Agreement and Compensation: (i) The
System Impact Study Agreement will clearly specify the Transmission
Provider's estimate of the actual cost, and time for completion of the
System Impact Study. The charge shall not exceed the actual cost of the
study. In performing the System Impact Study, the Transmission Provider
shall rely, to the extent reasonably practicable, on existing
transmission planning studies. The Eligible Customer will not be
assessed a charge for such existing studies; however, the Eligible
Customer will be responsible for charges associated with any
modifications to existing planning studies that are reasonably
necessary to evaluate the impact of the Eligible Customer's request for
service on the Transmission System.
(ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation, a single
System Impact Study is sufficient for the Transmission Provider to
accommodate the service requests, the costs of that study shall be pro-
rated among the Eligible Customers.
(iii) For System Impact Studies that the Transmission Provider
conducts on its own behalf, the Transmission Provider shall record the
cost of the System Impact Studies pursuant to Section 8.
32.3 System Impact Study Procedures: Upon receipt of an executed
System Impact Study Agreement, the Transmission Provider will use due
diligence to complete the required System Impact Study within a sixty
(60) day period. The System Impact Study shall identify any system
constraints and redispatch options, additional Direct Assignment
Facilities or Network Upgrades required to provide the requested
service. In the event that the Transmission Provider is unable to
complete the required System Impact Study within such time period, it
shall so notify the Eligible Customer and provide an estimated
completion date along with an explanation of the reasons why additional
time is required to complete the required studies. A copy of the
completed System Impact Study and related work papers shall be made
available to the Eligible Customer. The Transmission Provider will use
the same due diligence in completing the System Impact Study for an
Eligible Customer as it uses when completing studies for itself. The
Transmission Provider shall notify the Eligible Customer immediately
upon completion of the System Impact Study if the Transmission System
will be adequate to accommodate all or part of a request for service or
that no costs are likely to be incurred for new transmission facilities
or upgrades. In order for a request to remain a Completed Application,
within fifteen (15) days of completion of the System Impact Study the
Eligible Customer must execute a Service Agreement or request service
without an executed Service Agreement pursuant to Section 29.1, or the
Application shall be deemed terminated and withdrawn.
32.4 Facilities Study Procedures: If a System Impact Study
indicates that additions or upgrades to the Transmission System are
needed to supply the Eligible Customer's service request, the
Transmission Provider, within thirty (30) days of the completion of the
System Impact Study, shall tender to the Eligible Customer a Facilities
Study Agreement pursuant to which the Eligible Customer shall agree to
advance funds to the Transmission Provider for performing the required
Facilities Study. For a service request to remain a Completed
Application, the Eligible Customer shall execute the Facilities Study
Agreement and return it to the Transmission Provider within fifteen
(15) days. If the Eligible Customer elects not to execute the
Facilities Study Agreement, its Application shall be deemed withdrawn
and its deposit shall be returned. Upon receipt of an executed
Facilities Study Agreement, the Transmission Provider will use due
diligence to complete the required Facilities Study within a sixty (60)
day period. If the Transmission Provider is unable to complete the
Facilities Study in the allotted time period, the Transmission Provider
shall notify the Eligible Customer and provide an estimate of the time
needed to reach a final determination along with an explanation of the
reasons that additional time is required to complete the study. When
completed, the Facilities Study will include a good faith estimate of
(i) the cost of Direct Assignment Facilities to be charged to the
Eligible Customer, (ii) the Eligible Customer's appropriate share of
the cost of any required Network Upgrades, and (iii) the time required
to complete such construction and initiate the requested service. The
Eligible Customer shall advance funds to the Transmission Provider for
the construction of new facilities, and such advance and construction
shall be provided for in a separate agreement. If the construction of
new facilities requires the expenditure of Transmission Provider funds,
such construction shall be contingent upon the availability of
appropriated funds. The Eligible Customer shall have thirty (30) days
to execute a construction agreement and a Service Agreement or request
service
[[Page 506]]
without an executed Service Agreement pursuant to Section 29.1, and pay
the Transmission Customer's share of the costs, or the request no
longer will be a Completed Application and shall be deemed terminated
and withdrawn. Any advance payment made by the Transmission Customer
which is in excess of the costs incurred by the Transmission Provider
shall be refunded.
33 Load Shedding and Curtailments
33.1 Procedures: Prior to the Service Commencement Date, the
Transmission Provider and the Network Customer shall establish Load
Shedding and Curtailment procedures pursuant to the Network Operating
Agreement with the objective of responding to contingencies on the
Transmission System. The Parties will implement such programs during
any period when the Transmission Provider determines that a system
contingency exists and such procedures are necessary to alleviate such
contingency. The Transmission Provider will notify all affected Network
Customers in a timely manner of any scheduled Curtailment.
33.2 Transmission Constraints: During any period when the
Transmission Provider determines that a transmission constraint exists
on the Transmission System, and such constraint may impair the
reliability of the Transmission Provider's system, the Transmission
Provider will take whatever actions, consistent with Good Utility
Practice, that are reasonably necessary to maintain the reliability of
the Transmission Provider's system. To the extent the Transmission
Provider determines that the reliability of the Transmission System can
be maintained by redispatching resources, the Transmission Provider
will initiate procedures pursuant to the Network Operating Agreement to
redispatch all Network Resources and the Transmission Provider's own
resources on a least-cost basis without regard to the ownership of such
resources. Any redispatch under this section may not unduly
discriminate between the Transmission Provider's use of the
Transmission System on behalf of its Native Load Customers and any
Network Customer's use of the Transmission System to serve its
designated Network Load.
33.3 Cost Responsibility for Relieving Transmission Constraints:
Whenever the Transmission Provider implements least-cost redispatch
procedures in response to a transmission constraint, the Transmission
Provider and Network Customers will each bear a proportionate share of
the total redispatch cost based on their respective Load Ratio Shares.
33.4 Curtailments of Scheduled Deliveries: If a transmission
constraint on the Transmission Provider's Transmission System cannot be
relieved through the implementation of least-cost redispatch procedures
and the Transmission Provider determines that it is necessary to
Curtail scheduled deliveries, the Parties shall Curtail such schedules
in accordance with the Network Operating Agreement.
33.5 Allocation of Curtailments: The Transmission Provider shall,
on a non-discriminatory basis, Curtail the transaction(s) that
effectively relieve the constraint. However, to the extent practicable
and consistent with Good Utility Practice, any Curtailment will be
shared by the Transmission Provider and Network Customer in proportion
to their respective Load Ratio Shares. The Transmission Provider shall
not direct the Network Customer to Curtail schedules to an extent
greater than the Transmission Provider would Curtail the Transmission
Provider's schedules under similar circumstances.
33.6 Load Shedding: To the extent that a system contingency exists
on the Transmission Provider's Transmission System and the Transmission
Provider determines that it is necessary for the Transmission Provider
and the Network Customer to shed load, the Parties shall shed load in
accordance with previously established procedures under the Network
Operating Agreement.
33.7 System Reliability: Notwithstanding any other provisions of
this Tariff, the Transmission Provider reserves the right, consistent
with Good Utility Practice and on a not unduly discriminatory basis, to
Curtail Network Integration Transmission Service without liability on
the Transmission Provider's part for the purpose of making necessary
adjustments to, changes in, or repairs on its lines, substations and
facilities, and in cases where the continuance of Network Integration
Transmission Service would endanger persons or property. In the event
of any adverse condition(s) or disturbance(s) on the Transmission
Provider's Transmission System or on any other system(s) directly or
indirectly interconnected with the Transmission Provider's Transmission
System, the Transmission Provider, consistent with Good Utility
Practice, also may Curtail Network Integration Transmission Service in
order to (i) limit the extent or damage of the adverse condition(s) or
disturbance(s), (ii) prevent damage to generating or transmission
facilities, or (iii) expedite restoration of service. The Transmission
Provider will give the Network Customer as much advance notice as is
practicable in the event of such Curtailment. Any Curtailment of
Network Integration Transmission Service will be not unduly
discriminatory relative to the Transmission Provider's use of the
Transmission System on behalf of its Native Load Customers. The
Transmission Provider shall specify the rate treatment and all related
terms and conditions applicable in the event that the Network Customer
fails to respond to established Load Shedding and Curtailment
procedures.
34 Rates and Charges
The Network Customer shall pay the Transmission Provider for any
Direct Assignment Facilities, Ancillary Services, and applicable study
costs, consistent with Federal practice, 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
[[Page 507]]
Customer pursuant to this Tariff in accordance with the terms,
conditions and procedures set forth in FERC Order No. 888, in a manner
consistent with applicable Federal law and regulations.
35 Operating Arrangements
35.1 Operation Under The Network Operating Agreement: The Network
Customer shall plan, construct, operate and maintain its facilities in
accordance with Good Utility Practice and in conformance with the
Network Operating Agreement.
35.2 Network Operating Agreement: The terms and conditions under
which the Network Customer shall operate its facilities and the
technical and operational matters associated with the implementation of
Part III of the Tariff shall be specified in the Network Operating
Agreement. The Network Operating Agreement shall provide for the
Parties to (i) operate and maintain equipment necessary for integrating
the Network Customer within the Transmission Provider's Transmission
System (including, but not limited to, remote terminal units, metering,
communications equipment and relaying equipment), (ii) transfer data
between the Transmission Provider and the Network Customer (including,
but not limited to, heat rates and operational characteristics of
Network Resources, generation schedules for units outside the
Transmission Provider's Transmission System, interchange schedules,
unit outputs for redispatch required under Section 33, voltage
schedules, loss factors and other real time data), (iii) use software
programs required for data links and constraint dispatching, (iv)
exchange data on forecasted loads and resources necessary for long-term
planning, and (v) address any other technical and operational
considerations required for implementation of Part III of the Tariff,
including scheduling protocols. The Network Operating Agreement will
recognize that the Network Customer shall either (i) operate as a
Control Area under applicable guidelines of the North American Electric
Reliability Council (NERC) and the [applicable regional reliability
council], (ii) satisfy its Control Area requirements, including all
necessary Ancillary Services, by contracting with the Transmission
Provider, or (iii) satisfy its Control Area requirements, including all
necessary Ancillary Services, by contracting with another entity,
consistent with Good Utility Practice, which satisfies NERC and the
[applicable regional reliability council] requirements. The
Transmission Provider shall not unreasonably refuse to accept
contractual arrangements with another entity for Ancillary Services.
The Network Operating Agreement is included in Attachment G.
35.3 Network Operating Committee
A Network Operating Committee (Committee) shall be established to
coordinate operating criteria for the Parties' respective
responsibilities under the Network Operating Agreement. Each Network
Customer shall be entitled to have at least one representative on the
Committee. The Committee shall meet from time to time as need requires,
but no less than once each calendar year.
Schedule 1
Scheduling, System Control and Dispatch Service
This service is required to schedule the movement of power through,
out of, within, or into a Control Area. This service can be provided
only by the operator of the Control Area in which the transmission
facilities used for transmission service are located. Scheduling,
System Control and Dispatch Service is provided directly by the
Transmission Provider (if the Transmission Provider is the Control Area
Operator) or indirectly by the Transmission Provider making
arrangements with the Control Area operator that performs this service
for the Transmission Provider's Transmission System. The Transmission
Customer must purchase this service from the Transmission Provider or
the Control Area operator. The charges for Scheduling, System Control
and Dispatch Service are to be based on the rates referred to below. To
the extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The charges for Scheduling, System Control and Dispatch Service are
set forth in the appropriate rate schedule attached to and made part of
the applicable Service Agreement. The rates or rate methodology used to
calculate the charges for service under this schedule were promulgated
and may be modified pursuant to applicable Federal laws, regulations,
and policies.
The Transmission Provider may modify the charges for Scheduling,
System Control and Dispatch Service upon written notice to the
Transmission 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
is to be provided directly by the Transmission Provider (if the
Transmission Provider is the Control Area operator) or indirectly by
the Transmission Provider making arrangements with the Control Area
operator that performs this service for the Transmission Provider's
Transmission System. The Transmission Customer must purchase this
service from the Transmission Provider or the Control Area operator.
The charges for such service will be based upon the rates referred to
below. To the extent the Control Area operator performs this service
for the Transmission Provider, charges to the Transmission Customer are
to reflect only a pass-through of the costs charged to the Transmission
Provider by the Control Area Operator.
The charges for Reactive Supply and Voltage Control from Generation
Sources Service are set forth in the appropriate rate schedule attached
to and made part of the applicable Service Agreement. The rates or rate
methodology used to calculate the charges for service under this
schedule were promulgated and may be modified pursuant to applicable
Federal laws, regulations, and policies.
The Transmission Provider may modify the charges for Reactive
Supply and Voltage Control from Generation Sources Service upon written
notice to
[[Page 508]]
the Transmission Customer. Any change to the charges to the
Transmission Customer for Reactive Supply and Voltage Control from
Generation Sources Service shall be as set forth in a subsequent rate
schedule promulgated pursuant to the above procedures and attached to
and made part of the applicable Service Agreement. The Transmission
Provider shall charge the Transmission Customer in accordance with the
rate then in effect.
Schedule 3
Regulation and Frequency Response Service
Regulation and Frequency Response Service is necessary to provide
for the continuous balancing of resources (generation and interchange)
with load and for maintaining scheduled interconnection frequency at
sixty cycles per second (60 Hz). Regulation and Frequency Response
Service is accomplished by committing on-line generation whose output
is raised or lowered (predominantly through the use of automatic
generating control equipment) as necessary to follow the moment-by-
moment changes in load. The obligation to maintain this balance between
resources and load lies with the Transmission Provider (or the Control
Area operator that performs this function for the Transmission
Provider). The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Regulation and Frequency Response Service obligation. The
charges for Regulation and Frequency Response Service are referred to
below. The amount of Regulation and Frequency Response Service may be
set forth in the Service Agreement. To the extent the Control Area
operator performs this service for the Transmission Provider, charges
to the Transmission Customer are to reflect only a pass-through of the
costs charged to the Transmission Provider by that Control Area
operator.
The charges for Regulation and Frequency Response Service are set
forth in the appropriate rate schedule attached to and made part of the
applicable Service Agreement. The rates or rate methodology used to
calculate the charges for service under this schedule were promulgated
and may be modified pursuant to applicable Federal laws, regulations,
and policies.
The Transmission Provider may modify the charges for Regulation and
Frequency Response Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Regulation and Frequency Response Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to the above procedures
and attached to and made part of the applicable Service Agreement. The
Transmission Provider shall charge the Transmission Customer in
accordance with the rate then in effect.
Schedule 4
Energy Imbalance Service
Energy Imbalance Service is provided when a difference occurs
between the scheduled and the actual delivery of energy to a load
located within a Control Area over a single hour. The Transmission
Provider must offer this service when the transmission service is used
to serve load within its Control Area. The Transmission Customer must
either obtain this service from the Transmission Provider or make
alternative comparable arrangements to satisfy its Energy Imbalance
Service obligation. To the extent the Control Area operator performs
this service for the Transmission Provider, charges to the Transmission
Customer are to reflect only a pass-through of the costs charged to the
Transmission Provider by that Control Area operator.
The Transmission Provider shall establish a deviation band of +/
-1.5 percent (with a minimum of 2 MW) of the scheduled transaction to
be applied hourly to any energy imbalance that occurs as a result of
the Transmission Customer's scheduled transaction(s). Parties should
attempt to eliminate energy imbalances within the limits of the
deviation band within thirty (30) days or within such other reasonable
period of time as is generally accepted in the region and consistently
adhered to by the Transmission Provider. If an energy imbalance is not
corrected within thirty (30) days or a reasonable period of time that
is generally accepted in the region and consistently adhered to by the
Transmission Provider, the Transmission Customer will compensate the
Transmission Provider for such service. Energy imbalances outside the
deviation band will be subject to charges to be specified by the
Transmission Provider. Compensation for Energy Imbalance Service will
be as set forth below.
The compensation for Energy Imbalance Service is set forth in the
appropriate rate schedule attached to and made part of the applicable
Service Agreement. The rates or rate methodology used to calculate the
charges for service under this schedule were promulgated and may be
modified pursuant to applicable Federal laws, regulations, and
policies.
The Transmission Provider may modify the compensation for Energy
Imbalance Service upon written notice to the Transmission Customer. Any
change to the compensation to the Transmission Customer for Energy
Imbalance Service shall be as set forth in a subsequent rate schedule
promulgated pursuant to the above procedures and attached to and made
part of the applicable Service Agreement. The Transmission Provider
shall charge the Transmission Customer in accordance with the rate then
in effect.
Schedule 5
Operating Reserve--Spinning Reserve Service
Spinning Reserve Service is needed to serve load immediately in the
event of a system contingency. Spinning Reserve Service may be provided
by generating units that are on-line and loaded at less than maximum
output. The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Spinning Reserve Service obligation. The charges for
Spinning Reserve Service are referred to below. The amount of Spinning
Reserve Service may be set forth in the Service Agreement. To the
extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The charges for Operating Reserve--Spinning Reserve Service are set
forth in the appropriate rate schedule attached to and made part of the
applicable Service Agreement. The rates or rate methodology used to
calculate the charges for service under this schedule were promulgated
and may be modified pursuant to applicable Federal laws, regulations,
and policies.
The Transmission Provider may modify the charges for Operating
Reserve--Spinning Reserve Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Operating Reserve--Spinning Reserve Service shall be as
set forth in a subsequent rate schedule promulgated
[[Page 509]]
pursuant to the above procedures and attached to and made part of the
applicable Service Agreement. The Transmission Provider shall charge
the Transmission Customer in accordance with the rate then in effect.
Schedule 6
Operating Reserve--Supplemental Reserve Service
Supplemental Reserve Service is needed to serve load in the event
of a system contingency; however, it is not available immediately to
serve load but rather within a short period of time. Supplemental
Reserve Service may be provided by generating units that are on-line
but unloaded, by quick-start generation or by interruptible load. The
Transmission Provider must offer this service when the transmission
service is used to serve load within its Control Area. The Transmission
Customer must either purchase this service from the Transmission
Provider or make alternative comparable arrangements to satisfy its
Supplemental Reserve Service obligation. The charges for Supplemental
Reserve Service are referred to below. The amount of Supplemental
Reserve Service may be set forth in the Service Agreement. To the
extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
The charges for Operating Reserve--Supplemental Reserve Service are
set forth in the appropriate rate schedule attached to and made part of
the applicable Service Agreement. The rates or rate methodology used to
calculate the charges for service under this schedule were promulgated
and may be modified pursuant to applicable Federal laws, regulations,
and policies.
The Transmission Provider may modify the charges for Operating
Reserve--Supplemental Reserve Service upon written notice to the
Transmission Customer. Any change to the charges to the Transmission
Customer for Operating Reserve--Supplemental Reserve Service shall be
as set forth in a subsequent rate schedule promulgated pursuant to the
above procedures and attached to and made part of the applicable
Service Agreement. The Transmission Provider shall charge the
Transmission Customer in accordance with the rate then in effect.
Schedule 7
Long-Term Firm and Short-Term Firm Point-to-Point Transmission Service
The Transmission Customer shall compensate the Transmission
Provider each month for Reserved Capacity pursuant to its rate schedule
for Firm Point-to-Point Transmission Service attached to and made a
part of the applicable Service Agreement. The rates or rate methodology
used to calculate the charges for service under this schedule were
promulgated and may be modified pursuant to applicable Federal laws,
regulations, and policies.
The Transmission Provider may modify the charges for Firm Point-to-
Point Transmission Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Firm Point-to-Point Transmission Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to the above procedures
and attached to and made part of the applicable Service Agreement. The
Transmission Provider shall charge the Transmission Customer in
accordance with the rate then in effect.
Discounts: Three principal requirements apply to discounts for
transmission service as follows: (1) Any offer of a discount made by
the Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts (including requests for use by one's wholesale merchant or an
affiliate's use) must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
point(s) of receipt to point(s) of delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
Schedule 8
Non-Firm Point-To-Point Transmission Service
The Transmission Customer shall compensate the Transmission
Provider for Non-Firm Point-to-Point Transmission Service pursuant to
its rate schedule for Non-Firm Point-to-Point Transmission Service
attached to and made a part of the applicable Service Agreement. The
rates or rate methodology used to calculate the charges for service
under this schedule were promulgated and may be modified pursuant to
applicable Federal laws, regulations, and policies.
The Transmission Provider may modify the charges for Firm Point-to-
Point Transmission Service upon written notice to the Transmission
Customer. Any change to the charges to the Transmission Customer for
Firm Point-to-Point Transmission Service shall be as set forth in a
subsequent rate schedule promulgated pursuant to the above procedures
and attached to and made part of the applicable Service Agreement. The
Transmission Provider shall charge the Transmission Customer in
accordance with the rate then in effect.
Discounts: Three principal requirements apply to discounts for
transmission service as follows: (1) Any offer of a discount made by
the Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts (including requests for use by one's wholesale merchant or an
affiliate's use) must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
point(s) of receipt to point(s) of delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
Attachment A
Form of Service Agreement for Firm Point-To-Point Transmission
Service
Note: The form of the agreement for short-term firm transmission
service is Attachment B, which is an enabling agreement for short-
term arrangements, both firm and non-firm.
Part A: Service Agreement for Long-Term, Firm Point-To-Point
Transmission Service
1 This Service Agreement (Agreement), dated as of __________,
is entered into, by and between Southwestern Power Administration
(Transmission Provider or Southwestern), and __________
(Transmission Customer).
1.1 The Transmission Provider may revise rates 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.
1.2 The Transmission Provider may change the General Provisions
of this Agreement (Part C) upon written notice to the Transmission
Customer.
1.3 The Transmission Provider may recall all or part of the
capacity reserved under this Service Agreement, with no less than 36
[[Page 510]]
months' notice, if such capacity is required to fulfill the
Transmission Provider's obligations under Section 5 of the Flood
Control Act of 1944.
2 The Transmission Customer has been determined by the
Transmission Provider to have a Completed Application for Long-Term,
Firm Point-To-Point Transmission Service under the Transmission
Provider's Open Access Transmission Tariff (Tariff).
3 The Transmission Customer has provided to the Transmission
Provider a processing fee in accordance with Section 17.3 of the
Tariff.
4 The Tariff as presently constituted or as it may be revised
or superseded is incorporated herein and made a part hereof.
5 Southwestern's rate schedule applicable to Firm Point-to-
Point Transmission Service (Rate Schedule) as presently constituted
or as it may be revised or superseded is incorporated herein and
made a part hereof.
6 Service under this Agreement shall commence on the latest of:
(1) __________, (2) the date on which construction of any Direct
Assignment Facilities and/or Network Upgrades are completed, or (3)
on the first day of the month following execution by both Parties.
Service under this Agreement shall terminate on __________.
7 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 Agreement.
8 All schedules for service under this Agreement which cross
Control Area boundaries between the Transmission Provider and
interconnected utilities shall conform to the standards for
scheduled interchange of the North American Electric Reliability
Council and the applicable regional reliability council.
9 The Transmission Provider is not obligated under this
Agreement to satisfy any deficiencies that may occur for the
Transmission Customer as a result of suspension or reduction of
schedules by a Third Party, nor is the Transmission Provider obliged
to notify any party if such schedules are suspended or reduced due
to the action of a Third Party.
10 Any notice or request made to or by either Party regarding
this Agreement shall be made to the representative of the other
Party as indicated below.
Transmission Provider: Administrator, Southwestern Power
Administration, One West Third Street, Suite 1400, Tulsa, OK 74103.
Transmission Customer:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their respective authorized officials.
SOUTHWESTERN POWER ADMINISTRATION
By:--------------------------------------------------------------------
ADMINISTRATOR
P.O. Box 1619
Tulsa, Oklahoma, 74101-1619
Date:------------------------------------------------------------------
Reviewed by Southwestern's General Counsel:
By:--------------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
Part B: Specifications for Long-Term Firm Point-To-Point Transmission
Service
1 Term of Transaction:------------------------------------------------
Start Date:------------------------------------------------------------
Termination Date:------------------------------------------------------
2 Description of capacity to be transmitted by Transmission
Provider, including the electric Control Area in which the
transaction originates.
----------------------------------------------------------------------
3 Point(s) of Receipt:------------------------------------------------
Delivering Party: __________-------------------------------------------
4 Point(s) of Delivery: __________------------------------------------
5 Receiving Party: __________-----------------------------------------
Maximum amount of capacity to be transmitted (Reserved Capacity):
----------------------------------------------------------------------
6 Designation of party(ies) subject to reciprocal service
obligation:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
7 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 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 and the Rate Schedule.
8.1 Transmission Charges are set forth in the Rate Schedule.
8.2 Real Power Losses will be applied and charged in accordance
with the Rate Schedule.
8.3 Ancillary Services Charges are set forth in the Rate
Schedule. The specific Ancillary Services to be charged initially
under this Agreement are listed below. Changes in Ancillary
Services, if applicable, are made in accordance with the Rate
Schedule.
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
8.4 System Impact and/or Facilities Study Charge(s): (to be
filled in if applicable)
----------------------------------------------------------------------
----------------------------------------------------------------------
8.5 Direct Assignment Facilities Charge: (to be filled in if
applicable)
----------------------------------------------------------------------
8.5 Other Charges, including transformation services and
penalties, if applicable, will be determined by the Rate Schedule or
set forth below:
Part C: General Provisions Applicable to Transmission Service
1 Propriety of Rates. The Transmission Provider shall bill the
Transmission Customer for the Transmission Customer's purchases of
power, energy, and other services in accordance with the Rate
Schedule, which is placed in effect pursuant to statute.
1.1 The Transmission Customer hereby agrees to promptly pay the
Transmission Provider under such Rate Schedule, whether or not the
Transmission Customer agrees with the propriety or the levels of the
rates placed into effect pursuant to law, regulation, or the order
of an appropriate authority, subject to the Transmission Customer's
rights to terminate service.
1.2 In the event that the U.S. Congress amends the manner in
which the Transmission Provider calculates or charges for its
products and services, the Transmission Customer hereby agrees to
promptly pay in such an amended manner, subject to the Transmission
Customer's right to terminate.
2 Changes in Rates: The rates and/or terms and conditions set
forth in the Rate Schedule may change upon confirmation and/or
approval by the appropriate authority having responsibility to so
confirm and/or approve rate schedules, and, whether on an interim
basis or as finally confirmed and/or approved, such rates may be
increased, decreased, modified, or superseded at any time and from
time to time.
2.1 If such rates are so increased, decreased, modified, or
superseded, the rates and terms and conditions shall thereupon
become effective and applicable to the Transmission Service
furnished by the Transmission Provider under this Agreement, in
accordance with and on the effective date specified in the order of
the appropriate authority.
2.2 The Transmission Provider shall promptly notify the
Transmission Customer in writing of the redetermination and/or
changes and modifications made in the then-effective Transmission
Provider's rate schedules for Transmission Service.
2.3 If such notice advises that the rates to be paid by the
Transmission Customer for the Transmission Service furnished by the
Transmission Provider under this Agreement are greater than the
then-effective rate for such service, The Transmission Customer may,
by written notice to the Transmission Provider at any time within 90
days following the date of receipt of such notice from the
Transmission Provider, terminate this Agreement in its entirety,
such termination to become effective as of the last day of any month
following no less than 6 months after the date of receipt by the
Transmission Provider of such notice of termination from the
Transmission Customer.
2.4 In the event that the Transmission Customer elects to
terminate this Agreement pursuant to this Section 2, the
Transmission
[[Page 511]]
Customer shall pay for services under this Agreement at the then-
effective rates during the interim between the date of such notice
and the effective termination date specified in such notice.
3 Availability of Funds to the Transmission Provider: This
Agreement and all rights and obligations hereunder, and the
expenditure of funds by the Transmission Provider under its
provisions, are expressly conditioned and contingent upon the U.S.
Congress's making available (through direct appropriation,
authorization of a revolving fund, the authority to borrow funds, or
through such other means as it may provide) the necessary funds to
enable the Transmission Provider to carry out the provisions of this
Agreement, and if such funds are not available, this Agreement shall
terminate and have no further force or effect as of the last day for
which funds were available, and the Transmission Customer hereby
releases the Transmission Provider from any and all liability for
failure to perform and fulfill its obligations under this Agreement
for that reason.
3.1 No obligation contained herein for the future payment of
money by the Transmission Provider, or liability on the part of the
Transmission Provider for breach of any of the provisions contained
herein, shall be binding upon or enforceable against the
Transmission Provider unless and until funds, as provided in this
Section 3, are available out of which such obligations or liability
can be legally paid.
3.2 Nothing in this Agreement may be considered as implying
that the U.S. Congress will, at a later date, appropriate funds
sufficient to meet any deficiencies or obligations incurred under
this Agreement.
4 Covenant Against Contingent Fees: The Transmission Customer
warrants that no person or selling agency has been employed or
retained to solicit or secure this Agreement upon an agreement or
understanding for a commission, percentage, brokerage, or contingent
fee, except 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
this Agreement without liability, or, at its discretion, to add to
the Agreement price or consideration the full amount of such
commission, percentage, brokerage, or contingent fee.
5 Termination for Breach: If either Party breaches a material
provision of this Agreement, the other Party, at its option, may
terminate this Agreement upon 30 days' prior written notice of its
intention to do so, and this Agreement ipso facto shall terminate at
the end of such 30-day period unless such violation is corrected
within that period. Neither Party shall be considered to be in
default or breach with respect to any obligation under this
Agreement if prevented from fulfilling such obligation by reason of
an Uncontrollable Force.
6 Convict Labor: In connection with the performance of work
under this Agreement, the Transmission Customer agrees not to employ
any person under going sentence of imprisonment except as provided
by Pub. L. 89-176, September 10, 1965 (18 U.S.C. 4062 (c)(2)), and
Executive Order 11755, December 29, 1973.
7 Equal Employment Opportunity: During the performance of this
Agreement, the Transmission Customer agrees to abide by and to
fulfill the nondiscrimination requirements of the ``equal
opportunity clause'' contained in Section 202 of Executive Order
11246 dated September 24, 1965 (30 FR 12319), any Executive Order
amending such order, and any other Executive Order superseding such
order.
8 Affirmative Action for Disabled Veterans and Veterans of the
Vietnam Era: During the performance of this Agreement, the
Transmission Customer agrees to comply with Section 402 of the
Vietnam Era Veterans Readjustment Assistance Act of 1974, Pub. L.
93-508 as it amends Pub. L. 92-540, to take affirmative action to
employ and advance in employment qualified disabled veterans and
veterans of the Vietnam era, and to fulfill the requirements of the
``affirmative action clause,'' 38 USCA Sections 2011 and 2012
(1979); 41 CFR 60-250 et seq.
9 Affirmative Action for Handicapped Workers: During the
performance of this Agreement, the Transmission Customer agrees to
comply with Section 503 of the Rehabilitation Act of 1973, Pub. L.
93-516, to take affirmative action to employ and advance in
employment qualified handicapped individuals, and to otherwise
fulfill the requirements of the ``affirmative action clause,'' 29
USCA Section 793 (1979); 41 CFR 60-741 et seq.
10 Contract Work Hours and Safety Standards: This Agreement, to
the extent that it is of a character specified in Section 103 of the
Contract Work Hours and Safety Standards Act, 40 U.S.C. 327-333
(1986), is subject to the provisions of the said Act and to
regulations promulgated by the Secretary of Labor pursuant to the
said Act.
The following provisions are applicable only to Transmission
Customers which receive service through facilities which are (1)
jointly used by the Transmission Provider and the Transmission
Customer, (2) where the Transmission Customer would have occasion to
enter the facilities of the Transmission Provider, (3) where the
Transmission Customer owns facilities installed on the property of
the Transmission Provider, and/or (4) when the Transmission Customer
takes service directly from facilities owned and maintained by the
Transmission Provider.
11 Meter Tests and Adjustments: Any metering equipment which
may be used in power accounting for Transmission Service under this
Agreement shall be inspected and tested at least once each year by
the Party responsible, and at any reasonable time upon request by
either Party. Metering equipment found to be defective or inaccurate
shall be repaired and readjusted or replaced by the owner.
11.1 A meter shall be considered inaccurate if it is found to
deviate from an accurate standard meter in excess of 0.5 percent
when tested at 100 percent of load or 1.0 percent when tested at 10
percent of load.
11.2 If any meter inspection or test discloses an error
exceeding 2 percent, a correction based upon the inaccuracy found
shall be made on the records of electric service furnished since the
beginning of the monthly billing period immediately preceding the
billing period during which the test was made, and such correction,
when made, shall constitute full adjustment of any claim between the
parties hereto arising out of such inaccuracy of metering equipment.
12 Reliability, Safety, Health, and Environmental Requirements
in Regard to Construction, Operation, and Maintenance on U.S.
Government Property: The provisions of this Section 12 shall apply
only if the Transmission Customer, its agents or contractors, or its
member entities perform maintenance, operations, or construction on
the property of the U.S. Government (Government), or on easements
shared by the Government and the Transmission Customer.
12.1 Such construction, maintenance, and operation shall be
performed in accordance with standards at least equal to those
provided by the National Electrical Safety Code and shall conform to
safety, environmental, and security procedures identified by
Transmission Provider as appropriate to each facility in which such
work is performed. The Transmission Provider provides such written
procedures in each of the facilities it maintains and to affected
Transmission Customers.
12.2 The Transmission Customer and/or its member entities shall
take all reasonable precautions in the performance of such work to
protect the public and the environment. The Transmission Customer
and/or its member entities shall comply with all applicable local,
state, and Federal regulations and requirements in the performance
of such work, including, but not limited to, the National
Environmental Policy Act, the Clean Air Act; the Clean Water Act;
the Comprehensive Environmental Responsibility, Compensation, and
Liability Act; the Toxic Substances Control Act; the Resource
Conservation and Recovery Act; the Superfund Amendments and
Reauthorization Act (SARA); SARA Title III (Emergency Planning and
Community Right-to-Know Act of 1986); and the Occupational Safety
and Health Act.
12.3 In the event that the Transmission Provider, at its sole
option and in its sole judgment, determines that construction,
maintenance, or operation of facilities which are performed under
this Agreement by the Transmission Customer, and/or one of its
member entities, do not meet the standards and/or regulations and
requirements specified in this Section 12, or if the Transmission
Provider determines, in its sole judgment, that a condition exists
which provides a potentially adverse impact (1) on the reliability
of services provided by Transmission Provider to its customers, (2)
on the safety and/or health of the public or employees and agents of
the parties hereto, and/or (3) on the environment, then Transmission
Provider may provide written notice to the Transmission Customer
and/or its member entity of the deficient condition; Provided, That,
if such condition, in Transmission Provider's sole judgment and at
Transmission Provider's sole option, requires immediate attention
and does not allow time
[[Page 512]]
for such notice, Transmission Provider will remedy the condition
and, where appropriate, bill the Transmission Customer.
12.4 Where, in the Transmission Provider's sole judgment,
remedy of the said deficient condition is not time critical, the
Transmission Customer and/or its member entity shall provide a
written plan and schedule to Transmission Provider within 30 days of
receipt of the said written notice. Such plan and schedule shall
provide for correction of the said deficiency at the earliest
possible time available to the Transmission Customer and/or its
member entity; Provided, That, the maximum time allowed for the
Transmission Customer and/or its member entity to correct any such
deficiency shall not exceed 18 months from receipt of the said
written notice. The Transmission Customer shall coordinate or, if
applicable, cause its member entity to coordinate, any work and
outages which may involve Transmission Provider's facilities with
Transmission Provider's Dispatch Center (Dispatch Center) in
Springfield, Missouri.
12.5 Unless otherwise agreed in writing, correction of
deficiencies pursuant to this Section 12 shall be at the expense of
the Transmission Customer.
12.6 If the Transmission Customer and/or its member entity
fails to correct the deficiency within the time provided pursuant to
this Section 12, the Transmission Provider shall have the right, at
its sole option and in its sole discretion, to terminate service
through the affected facilities until such deficiencies are
corrected to the satisfaction of Transmission Provider.
12.7 If, within the time period provided pursuant to this
Section 12, an emergency condition occurs which, in the sole
judgment of Transmission Provider, may cause an adverse impact on
the reliability of the Transmission System of Transmission Provider
and/or on the environment, or which poses a hazard to the safety
and/or health of the public or employees and agents of the parties
hereto, then Transmission Provider may, at its sole option, remedy
or repair such condition or equipment and bill the Transmission
Customer, and the Transmission Customer agrees to render the
Transmission Provider reimbursement.
13 Right of Installation and Access
Each Party grants to the other permission, or will obtain such
permission for the other Party, to install, maintain, and operate,
or cause to be installed, maintained, and operated, on the System of
Transmission Provider and on the System of the Transmission
Customer, at the Point(s) of Delivery between the System of
Transmission Provider and the System of the Transmission Customer
utilized under this Agreement, any and all terminal equipment and
associated electrical apparatus and devices necessary in the
performance of this Agreement.
13.1 Each party shall permit, or shall obtain permission for,
duly authorized representatives and employees of the other Party to
enter upon the System of the Transmission Provider and the System of
the Transmission Customer at the said Point(s) of Delivery for the
purpose of reading or checking meters; for inspecting, testing,
repairing, renewing, or exchanging any or all of the equipment owned
by the other party located on such premises; or for the purpose of
performing any other work necessary in the performance of this
Agreement.
13.2 Access for any work performed by one party under this
Section 13 which may affect the other Party's equipment shall
normally be preceded by at least one day's notice to the affected
Party, except in the event of an emergency, in which case such
notice shall be made as soon as possible after such emergency
occurrence. Notice to Transmission Provider pursuant to this Section
13 shall be made to the Dispatch Center.
13.3 Any access to property controlled by the Transmission
Provider shall include notification to Transmission Provider at the
time of entry. Any employee or agent of the Transmission Customer,
or of its member entities, who enters a Transmission Provider
facility is expected to call the Dispatch Center from a telephone
located in the control building in that facility and to identify
himself or herself. Security devices located in the control
buildings at Transmission Provider facilities sound an alarm in the
Dispatch Center when the building is entered. Local law enforcement
officers may be asked to investigate any unidentified entry.
13.4 Any equipment, apparatus, or devices installed on the
System of the Transmission Provider by the Transmission Customer, as
provided under this Section 13, shall be clearly and permanently
marked to indicate ownership, and, in addition, a detailed
description of each item so installed (including, if applicable,
manufacturer's name, serial number, model number, etc.) shall be
communicated to Transmission Provider to aid in maintenance of plant
accounts.
13.5 In the event the equipment, apparatus, or devices are not
marked in accordance with Section 13.4, ownership of said equipment,
apparatus, or devices shall be presumed to be vested in Transmission
Provider.
13.6 The Transmission Customer agrees that, if requested by
Transmission Provider, the description required under Section 13.4
shall include a detailed analysis of all dielectrical oil,
including, but not limited to, tests for polychlorinated biphenyls
(PCBs). If such analysis indicates the presence of a known hazardous
substance, which, in the Transmission Provider's sole judgment,
presents a significant hazard to the environment or to the health
and safety of employees of the parties hereto, the Transmission
Provider may require, at its sole option, by written request,
removal of any equipment containing such substance, and the
Transmission Customer agrees to comply with such request for removal
at no cost to Transmission Provider.
14 Right of Removal
Any and all equipment, apparatus, or devices placed or installed
or caused to be placed or installed by the Parties on or in the
System of the Transmission Provider or the System of the
Transmission Customer shall be and shall remain the property of the
Party owning and installing such equipment, apparatus, devices, or
facilities, regardless of the mode or manner of annexation or
attachment to real property, and, upon the termination of this
Agreement, the owner thereof shall have the right to enter upon the
premises or system of the other and shall, within a reasonable time,
remove such equipment, apparatus, devices, or facilities, subject to
the provisions of Section 13.5.
15 Right to Upgrade Facilities
The Transmission Provider reserves the right to modify or
upgrade its Transmission System and any of the elements which
support such Transmission System, including, but not limited to,
changes in: (1) The Transmission Provider's transmission voltages,
(2) The Transmission Provider's transmission system components, (3)
The Transmission Provider's communications system, (4) The
Transmission Provider's Supervisory Control and Data Acquisition
(SCADA) System, and (5) other modifications necessary to comply with
the standards and/or regulations and requirements mentioned in
Section 16.
15.1 If, during the term of this Agreement, the Transmission
Provider determines, in its sole judgment and at its sole option,
that modifications or upgrades to its Transmission System and
associated facilities are required, then, in that event, the
Transmission Customer shall be responsible for any and all costs and
expenses incurred by the Transmission Customer in order to continue
to receive services provided under this Agreement.
15.2 If the Transmission Customer elects not to make changes in
its facilities which, in The Transmission Provider's judgment, are
required for the Transmission Customer to continue to receive
reliable service from the Transmission Provider's modified or
upgraded facilities, then the Transmission Customer will discontinue
receipt of the services provided under this Agreement which are
dependent on such modified or upgraded facilities, and the
provisions of this Agreement which describe such services shall be
terminated or, at the Transmission Provider's sole option,
suspended, until the Transmission Customer completes the changes in
its facilities which the Transmission Provider, in its sole
judgment, deems necessary for safe and reliable service to the
Transmission Customer.
15.3 The Transmission Provider shall notify the Transmission
Customer of the specific sections or articles of the Agreement which
are to be terminated or suspended pursuant to this Section 15.
15.4 Any provisions of this Agreement which are not
specifically terminated or suspended pursuant to Section 15.3 shall
not in any way be affected and shall remain in full force and effect
except insofar as the services provided pursuant to the terminated
or suspended provisions which are reflected in other provisions of
this Agreement will also be terminated or suspended.
15.5 Termination or suspension of specific provisions of this
Agreement pursuant to this Section 17 shall be without penalty to
either of the Parties, except that
[[Page 513]]
the rights of the Parties, if any, which accrued prior to the date
of such termination or suspension shall be and hereby are preserved.
16 Limitation on Rights of Entry: The Transmission Provider
reserves the right, upon notice to the Transmission Customer, to
revoke or cancel the rights of entry granted under this Agreement
with regard to any particular representative of the Transmission
Customer, if, in the sole judgment of the Transmission Provider,
such revocation or cancellation is required in the interest of
national security.
17 Assistance by Contracting Parties: If assistance in
maintenance and utilization of their respective systems is rendered
by the Transmission Provider and/or the Transmission Customer, the
following terms and conditions shall apply:
17.1 If, in the maintenance or utilization of their respective
transmission systems and related facilities for the purpose of this
Agreement, it becomes necessary by reason of any emergency or
extraordinary condition for the Transmission Provider or the
Transmission Customer to request the other to furnish personnel,
materials, tools, and equipment for the maintenance or modification
of, or other work on, such transmission systems and related
facilities to insure continuity of power and energy deliveries, the
Party requested shall cooperate with the other and render such
assistance as the Party requested may determine to be available.
17.2 The Party making such request, upon receipt of properly
itemized bills, shall reimburse the Party rendering such assistance,
including overhead and administrative and general expenses. The
Transmission Customer and the Transmission Provider agree to account
for any incurred costs under a Work Order accounting procedure and
in accordance with the Uniform System of Accounts prescribed for
public utilities by the Commission.
17.3 Billing statements rendered by the Transmission Customer
and the Transmission Provider for such reimbursement shall be due 20
days from the date thereof.
Attachment B
Form of Service Agreement for Firm and Non-Firm Point-To-Point
Transmission Service
Note: The form of this agreement incorporates short-term firm
transmission service with non-firm transmission service, and is an
enabling agreement for all Southwestern short-term transmission
arrangements, both firm and non-firm.
Part A: Service Agreement for Enabling Short-Term Point-To-Point
Transmission Service
1 This Service Agreement (Agreement), dated as of __________,
is entered into, by, and between the Southwestern Power
Administration (Transmission Provider or Southwestern), and
__________ (Transmission Customer).
1.1 The Transmission Provider may revise rates 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.
1.2 The Transmission Provider may change the General Provisions
of this Agreement (Part C) upon written notice to the Transmission
Customer.
2 The Transmission Customer has been determined by the
Transmission Provider to have a Completed Application for receiving
Short-Term Point-To-Point Transmission Service under the
Transmission Provider's Open Access Transmission Tariff (Tariff).
3 The Tariff as presently constituted or as it may be revised
or superseded is incorporated herein and made a part hereof.
4 Southwestern's rate schedule applicable to Point-to-Point
Transmission Service (Rate Schedule) as presently constituted or as
it may be revised or superseded is incorporated herein and made a
part hereof.
5 Service under this agreement shall commence on the latest of:
(1) __________, (2) the date on which construction of any Direct
Assignment Facilities and/or Network Upgrades are completed, or (3)
on the first day of the month following execution by both parties.
Service under this Agreement shall terminate on __________.
6 The Transmission Provider agrees to provide, and the
Transmission Customer agrees to take and pay for, Short-Term Point-
To-Point Transmission Service in accordance with the provisions of
Part II of the Tariff and this Agreement.
7 All schedules for service under this Agreement which cross
Control Area boundaries between the Transmission Provider and
interconnected utilities shall conform to the standards for
scheduled interchange of the North American Electric Reliability
Council and the applicable regional reliability council.
8 The Transmission Provider is not obligated under this
Agreement to satisfy any deficiencies that may occur for the
Transmission Customer as a result of suspension or reduction of
schedules by a Third Party, nor is the Transmission Provider obliged
to notify any party if such schedules are suspended or reduced due
to the action of a Third Party.
9 Any notice or request made to or by either Party regarding
this Agreement shall be made to the representative of the other
Party as indicated below.
Transmission Provider: Administrator, Southwestern Power
Administration, One West Third Street, Suite 1400, Tulsa, OK 74103.
Transmission Customer:
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their respective authorized officials.
SOUTHWESTERN POWER ADMINISTRATION
By:--------------------------------------------------------------------
ADMINISTRATOR
P.O. Box 1619
Tulsa, Oklahoma, 74101-1619
Date:------------------------------------------------------------------
Reviewed by Southwestern's General Counsel:
By:--------------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
Part B: General Terms and Conditions for Short-Term Firm and Non-Firm
Point-To-Point Transmission Service
1 This Agreement is intended to enable a variety of individual
Short-Term Firm and Non-Firm Transmission Service Transactions
(Transactions). For the purposes of this Agreement, the Transmission
Customer has designated the following information in its Completed
Application as ``various:''
(I) Points of Receipt and Delivery, including supply and
delivery characteristics and voltages;
(ii) the Reserved Transmission Capacity desired;
(iii) the type of service (firm or non-firm, hourly, daily,
weekly, monthly) desired;
(iv) the date(s) and, if applicable, hour(s) for the service
which is desired,
(v) the identities of the Delivering and Receiving Parties; and
(vi) the location(s) of the resource from which power and energy
are to be supplied and the location of the load or Control Area(s)
to which it is to be transmitted.
2 Individual Transactions for Short-Term, Firm or Non-Firm,
Transmission Service under this Agreement may be requested by the
Transmission Customer in increments of a day, a week, or a month for
Firm Transmission Service, or in increments of an hour, a day, a
week, or a month for Non-Firm Transmission Service, and the
Transmission Provider will grant such requests on an as-available
basis.
2.1 For each specific Transaction requested, the Transmission
Customer shall supply to the Transmission Provider the specific
information listed in Section 1 pertinent to such Transaction, via
Southwestern's OASIS and/or by telephone or facsimile, in accordance
with the Tariff and with specific procedures which are mutually
agreeable to the Parties.
2.2 The Transmission Customer shall request a separate
Transaction for each type of service (firm or non-firm, and by rate
types related to increments of hourly, daily, weekly, or monthly
reservations).
2.3 The Transmission Provider shall review each Transaction
request and determine whether a reservation for such Transaction is
available. The Transmission Provider shall communicate, also via
OASIS and/or other means as agreed, the results of such
determination.
2.4 In the event that a capacity reservation is recorded for
such Transaction, the Transmission Customer will submit actual
schedules under such reservation in accordance with established
procedures, subject to the priority provisions of the Tariff and of
Section 7 of Part A of this Agreement.
[[Page 514]]
3 Capacity reservations for any particular Transaction for
Short-Term Firm Transmission Service will conform to the following
minimum and maximum periods for making such reservation prior to
actual service under such Transaction:
(a) For reservations in increments of one day (daily): No later
than 2 days, no earlier than 60 days prior to service
(b) For reservations in increments of one week (weekly): No
later than 2 days, no earlier than 60 days prior to service
(c) For reservations in increments of one month: No later than
14 days, no earlier than 120 days prior to service
4 Capacity reservations for any particular Transaction for Non-
Firm Transmission Service will conform to the following minimum and
maximum periods for making such reservation prior to actual service
under such Transaction:
(a) For reservations in increments of one hour (hourly): No
later than 20 minutes prior to the first hour requested, no earlier
than 2:00 p.m. the day before
(b) For reservations in increments of one day (daily): No later
than 10:00 a.m. the day before, no earlier than 30 days prior to
service
(c) For reservations of one week to one month (weekly): No later
than 2:00 p.m. the day before, no earlier than 60 days prior to
service
(d) For reservations of one month: No later than 2:00 p.m. the
day before, no earlier than 120 days prior to service
5 Reservations for any given one-week increment shall not cross
the end of a calendar month, and reservations for any month shall be
requested from the first day to the last day of a particular
calendar month.
6 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 and the Rate Schedule.
6.1 Transmission Charges are set forth in the Rate Schedule.
6.2 Real Power Losses will be applied and charged in accordance
with the Rate Schedule.
6.3 Ancillary Services Charges are set forth in the Rate
Schedule. The specific Ancillary Services to be charged for any
particular Transaction will be determined in accordance with the
Rate Schedule.
6.4 Other Charges, including transformation services and
penalties, if applicable, will be determined by the Rate Schedule or
set forth below:
Part C: General Provisions Applicable to Transmission Service
1 Propriety of Rates: The Transmission Provider shall bill the
Transmission Customer for the Transmission Customer's purchases of
power, energy, and other services in accordance with the Rate
Schedule, which is placed in effect pursuant to statute.
1.1 The Transmission Customer hereby agrees to promptly pay the
Transmission Provider under such Rate Schedule, whether or not the
Transmission Customer agrees with the propriety or the levels of the
rates placed into effect pursuant to law, regulation, or the order
of an appropriate authority, subject to the Transmission Customer's
rights to terminate service.
1.2 In the event that the U.S. Congress amends the manner in
which the Transmission Provider calculates or charges for its
products and services, the Transmission Customer hereby agrees to
promptly pay in such an amended manner, subject to the Transmission
Customer's right to terminate.
2 Changes in Rates: The rates and/or terms and conditions set
forth in the Rate Schedule may change upon confirmation and/or
approval by the appropriate authority having responsibility to so
confirm and/or approve rate schedules, and, whether on an interim
basis or as finally confirmed and/or approved, such rates may be
increased, decreased, modified, or superseded at any time and from
time to time.
2.1 If such rates are so increased, decreased, modified, or
superseded, the rates and terms and conditions shall thereupon
become effective and applicable to the Transmission Service
furnished by the Transmission Provider under this Agreement, in
accordance with and on the effective date specified in the order of
the appropriate authority.
2.2 The Transmission Provider shall promptly notify the
Transmission Customer in writing of the redetermination and/or
changes and modifications made in the then-effective Transmission
Provider's rate schedules for Transmission Service.
2.3 If such notice advises that the rates to be paid by the
Transmission Customer for the Transmission Service furnished by the
Transmission Provider under this Agreement are greater than the
then-effective rate for such service, The Transmission Customer may,
by written notice to the Transmission Provider at any time within 90
days following the date of receipt of such notice from the
Transmission Provider, terminate this Agreement in its entirety,
such termination to become effective as of the last day of any month
following no less than 6 months after the date of receipt by the
Transmission Provider of such notice of termination from the
Transmission Customer.
2.4 In the event that the Transmission Customer elects to
terminate this Agreement pursuant to this Section 2, the
Transmission Customer shall pay for services under this Agreement at
the then-effective rates during the interim between the date of such
notice and the effective termination date specified in such notice.
3 Availability of Funds to the Transmission Provider: This
Agreement and all rights and obligations hereunder, and the
expenditure of funds by the Transmission Provider under its
provisions, are expressly conditioned and contingent upon the U.S.
Congress's making available (through direct appropriation,
authorization of a revolving fund, the authority to borrow funds,
or through such other means as it may provide) the necessary funds
to enable the Transmission Provider to carry out the provisions of
this Agreement, and if such funds are not available, this Agreement
shall terminate and have no further force or effect as of the last
day for which funds were available, and the Transmission Customer
hereby releases the Transmission Provider from any and all
liability for failure to perform and fulfill its obligations under
this Agreement for that reason.
3.1 No obligation contained herein for the future payment of
money by the Transmission Provider, or liability on the part of the
Transmission Provider for breach of any of the provisions contained
herein, shall be binding upon or enforceable against the
Transmission Provider unless and until funds, as provided in this
Section 3, are available out of which such obligations or liability
can be legally paid.
3.2 Nothing in this Agreement may be considered as implying
that the U.S. Congress will, at a later date, appropriate funds
sufficient to meet any deficiencies or obligations incurred under
this Agreement.
4 Covenant Against Contingent Fees: The Transmission Customer
warrants that no person or selling agency has been employed or
retained to solicit or secure this Agreement upon an agreement or
understanding for a commission, percentage, brokerage, or contingent
fee, except 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
this Agreement without liability, or, at its discretion, to add to
the Agreement price or consideration the full amount of such
commission, percentage, brokerage, or contingent fee.
5 Termination for Breach: If either Party breaches a material
provision of this Agreement, the other Party, at its option, may
terminate this Agreement upon 30 days' prior written notice of its
intention to do so, and this Agreement ipso facto shall terminate at
the end of such 30-day period unless such violation is corrected
within that period. Neither Party shall be considered to be in
default or breach with respect to any obligation under this
Agreement if prevented from fulfilling such obligation by reason of
an Uncontrollable Force.
6 Convict Labor: In connection with the performance of work
under this Agreement, the Transmission Customer agrees not to employ
any person undergoing sentence of imprisonment except as provided by
Public Law 89-176, September 10, 1965 (18 U.S.C. 4062(c)(2)), and
Executive Order 11755, December 29, 1973.
7 Equal Employment Opportunity: During the performance of this
Agreement, the
[[Page 515]]
Transmission Customer agrees to abide by and to fulfill the
nondiscrimination requirements of the ``equal opportunity clause''
contained in Section 202 of Executive Order 11246 dated September
24, 1965 (30 FR 12319), any Executive Order amending such order, and
any other Executive Order superseding such order.
8 Affirmative Action for Disabled Veterans and Veterans of the
Vietnam Era: During the performance of this Agreement, the
Transmission Customer agrees to comply with Section 402 of the
Vietnam Era Veterans Readjustment Assistance Act of 1974, Public Law
93-508 as it amends Public Law 92-540, to take affirmative action to
employ and advance in employment qualified disabled veterans and
veterans of the Vietnam era, and to fulfill the requirements of the
``affirmative action clause,'' 38 USCA Sections 2011 and 2012
(1979); 41 CFR 60-250 et seq.
9 Affirmative Action for Handicapped Workers: During the
performance of this Agreement, the Transmission Customer agrees to
comply with Section 503 of the Rehabilitation Act of 1973, Public
Law 93-516, to take affirmative action to employ and advance in
employment qualified handicapped individuals, and to otherwise
fulfill the requirements of the ``affirmative action clause,'' 29
USCA Section 793 (1979); 41 CFR 60-741 et seq.
10 Contract Work Hours and Safety Standards: This Agreement, to
the extent that it is of a character specified in Section 103 of the
Contract Work Hours and Safety Standards Act, 40 U.S.C. 327-333
(1986), is subject to the provisions of the said Act and to
regulations promulgated by the Secretary of Labor pursuant to the
said Act.
The following provisions are applicable only to Transmission
Customers which receive service through facilities which are (1)
jointly used by the Transmission Provider and the Transmission
Customer, (2) where the Transmission Customer would have occasion to
enter the facilities of the Transmission Provider, (3) where the
Transmission Customer owns facilities installed on the property of
the Transmission Provider, and/or (4) when the Transmission Customer
takes service directly from facilities owned and maintained by the
Transmission Provider.
11 Meter Tests and Adjustments: Any metering equipment which
may be used in power accounting for Transmission Service under this
Agreement shall be inspected and tested at least once each year by
the Party responsible, and at any reasonable time upon request by
either Party. Metering equipment found to be defective or inaccurate
shall be repaired and readjusted or replaced by the owner.
11.1 A meter shall be considered inaccurate if it is found to
deviate from an accurate standard meter in excess of 0.5 percent
when tested at 100 percent of load or 1.0 percent when tested at 10
percent of load.
11.2 If any meter inspection or test discloses an error
exceeding 2 percent, a correction based upon the inaccuracy found
shall be made on the records of electric service furnished since the
beginning of the monthly billing period immediately preceding the
billing period during which the test was made, and such correction,
when made, shall constitute full adjustment of any claim between the
parties hereto arising out of such inaccuracy of metering equipment.
12 Reliability, Safety, Health, and Environmental Requirements
in Regard to Construction, Operation, and Maintenance on U.S.
Government Property: The provisions of this Section 12 shall apply
only if the Transmission Customer, its agents or contractors, or its
member entities perform maintenance, operations, or construction on
the property of the U.S. Government (Government), or on easements
shared by the Government and the Transmission Customer.
12.1 Such construction, maintenance, and operation shall be
performed in accordance with standards at least equal to those
provided by the National Electrical Safety Code and shall conform to
safety, environmental, and security procedures identified by
Transmission Provider as appropriate to each facility in which such
work is performed. The Transmission Provider provides such written
procedures in each of the facilities it maintains and to affected
Transmission Customers.
12.2 The Transmission Customer and/or its member entities shall
take all reasonable precautions in the performance of such work to
protect the public and the environment. The Transmission Customer
and/or its member entities shall comply with all applicable local,
state, and Federal regulations and requirements in the performance
of such work, including, but not limited to, the National
Environmental Policy Act, the Clean Air Act; the Clean Water Act;
the Comprehensive Environmental Responsibility, Compensation, and
Liability Act; the Toxic Substances Control Act; the Resource
Conservation and Recovery Act; the Superfund Amendments and
Reauthorization Act (SARA); SARA Title III (Emergency Planning and
Community Right-to-Know Act of 1986); and the Occupational Safety
and Health Act.
12.3 In the event that the Transmission Provider, at its sole
option and in its sole judgment, determines that construction,
maintenance, or operation of facilities which are performed under
this Agreement by the Transmission Customer, and/or one of its
member entities, do not meet the standards and/or regulations and
requirements specified in this Section 12, or if the Transmission
Provider determines, in its sole judgment, that a condition exists
which provides a potentially adverse impact (1) on the reliability
of services provided by Transmission Provider to its customers, (2)
on the safety and/or health of the public or employees and agents of
the parties hereto, and/or (3) on the environment, then Transmission
Provider may provide written notice to the Transmission Customer
and/or its member entity of the deficient condition; Provided, That,
if such condition, in Transmission Provider's sole judgment and at
Transmission Provider's sole option, requires immediate attention
and does not allow time for such notice, Transmission Provider will
remedy the condition and, where appropriate, bill the Transmission
Customer.
12.4 Where, in the Transmission Provider's sole judgment,
remedy of the said deficient condition is not time critical, the
Transmission Customer and/or its member entity shall provide a
written plan and schedule to Transmission Provider within 30 days of
receipt of the said written notice. Such plan and schedule shall
provide for correction of the said deficiency at the earliest
possible time available to the Transmission Customer and/or its
member entity; Provided, That, the maximum time allowed for the
Transmission Customer and/or its member entity to correct any such
deficiency shall not exceed 18 months from receipt of the said
written notice. The Transmission Customer shall coordinate or, if
applicable, cause its member entity to coordinate, any work and
outages which may involve Transmission Provider's facilities with
Transmission Provider's Dispatch Center (Dispatch Center) in
Springfield, Missouri.
12.5 Unless otherwise agreed in writing, correction of
deficiencies pursuant to this Section 12 shall be at the expense of
the Transmission Customer.
12.6 If the Transmission Customer and/or its member entity
fails to correct the deficiency within the time provided pursuant to
this Section 12, the Transmission Provider shall have the right, at
its sole option and in its sole discretion, to terminate service
through the affected facilities until such deficiencies are
corrected to the satisfaction of Transmission Provider.
12.7 If, within the time period provided pursuant to this
Section 12, an emergency condition occurs which, in the sole
judgment of Transmission Provider, may cause an adverse impact on
the reliability of the Transmission System of Transmission Provider
and/or on the environment, or which poses a hazard to the safety
and/or health of the public or employees and agents of the parties
hereto, then Transmission Provider may, at its sole option, remedy
or repair such condition or equipment and bill the Transmission
Customer, and the Transmission Customer agrees to render the
Transmission Provider reimbursement.
13 Right of Installation and Access: Each Party grants to the
other permission, or will obtain such permission for the other
Party, to install, maintain, and operate, or cause to be installed,
maintained, and operated, on the System of Transmission Provider and
on the System of the Transmission Customer, at the Point(s) of
Delivery between the System of Transmission Provider and the System
of the Transmission Customer utilized under this Agreement, any and
all terminal equipment and associated electrical apparatus and
devices necessary in the performance of this Agreement.
13.1 Each party shall permit, or shall obtain permission for,
duly authorized representatives and employees of the other Party to
enter upon the System of the Transmission Provider and the System of
the Transmission Customer at the said Point(s) of Delivery for the
purpose of reading or checking meters; for inspecting, testing,
repairing, renewing, or exchanging any or all of the equipment owned
by the other party located on such premises; or for the purpose of
performing any other work necessary in the performance of this
Agreement.
[[Page 516]]
13.2 Access for any work performed by one party under this
Section 13 which may affect the other Party's equipment shall
normally be preceded by at least one day's notice to the affected
Party, except in the event of an emergency, in which case such
notice shall be made as soon as possible after such emergency
occurrence. Notice to Transmission Provider pursuant to this Section
13 shall be made to the Dispatch Center.
13.3 Any access to property controlled by the Transmission
Provider shall include notification to Transmission Provider at the
time of entry. Any employee or agent of the Transmission Customer,
or of its member entities, who enters a Transmission Provider
facility is expected to call the Dispatch Center from a telephone
located in the control building in that facility and to identify
himself or herself. Security devices located in the control
buildings at Transmission Provider facilities sound an alarm in the
Dispatch Center when the building is entered. Local law enforcement
officers may be asked to investigate any unidentified entry.
13.4 Any equipment, apparatus, or devices installed on the
System of the Transmission Provider by the Transmission Customer, as
provided under this Section 13, shall be clearly and permanently
marked to indicate ownership, and, in addition, a detailed
description of each item so installed (including, if applicable,
manufacturer's name, serial number, model number, etc.) shall be
communicated to Transmission Provider to aid in maintenance of plant
accounts.
13.5 In the event the equipment, apparatus, or devices are not
marked in accordance with Section 13.4, ownership of said equipment,
apparatus, or devices shall be presumed to be vested in Transmission
Provider.
13.6 The Transmission Customer agrees that, if requested by
Transmission Provider, the description required under Section 13.4
shall include a detailed analysis of all dielectrical oil,
including, but not limited to, tests for polychlorinated biphenyls
(PCBs). If such analysis indicates the presence of a known hazardous
substance, which, in the Transmission Provider's sole judgment,
presents a significant hazard to the environment or to the health
and safety of employees of the parties hereto, the Transmission
Provider may require, at its sole option, by written request,
removal of any equipment containing such substance, and the
Transmission Customer agrees to comply with such request for removal
at no cost to Transmission Provider.
14 Right of Removal: Any and all equipment, apparatus, or
devices placed or installed or caused to be placed or installed by
the Parties on or in the System of the Transmission Provider or the
System of the Transmission Customer shall be and shall remain the
property of the Party owning and installing such equipment,
apparatus, devices, or facilities, regardless of the mode or manner
of annexation or attachment to real property, and, upon the
termination of this Agreement, the owner thereof shall have the
right to enter upon the premises or system of the other and shall,
within a reasonable time, remove such equipment, apparatus, devices,
or facilities, subject to the provisions of Section 13.5.
15 Right to Upgrade Facilities: The Transmission Provider
reserves the right to modify or upgrade its Transmission System and
any of the elements which support such Transmission System,
including, but not limited to, changes in: (1) The Transmission
Provider's transmission voltages, (2) The Transmission Provider's
transmission system components, (3) The Transmission Provider's
communications system, (4) The Transmission Provider's Supervisory
Control and Data Acquisition (SCADA) System, and (5) other
modifications necessary to comply with the standards and/or
regulations and requirements mentioned in Section 16.
15.1 If, during the term of this Agreement, the Transmission
Provider determines, in its sole judgment and at its sole option,
that modifications or upgrades to its Transmission System and
associated facilities are required, then, in that event, the
Transmission Customer shall be responsible for any and all costs and
expenses incurred by the Transmission Customer in order to continue
to receive services provided under this Agreement.
15.2 If the Transmission Customer elects not to make changes in
its facilities which, in The Transmission Provider's judgment, are
required for the Transmission Customer to continue to receive
reliable service from the Transmission Provider's modified or
upgraded facilities, then the Transmission Customer will discontinue
receipt of the services provided under this Agreement which are
dependent on such modified or upgraded facilities, and the
provisions of this Agreement which describe such services shall be
terminated or, at the Transmission Provider's sole option,
suspended, until the Transmission Customer completes the changes in
its facilities which the Transmission Provider, in its sole
judgment, deems necessary for safe and reliable service to the
Transmission Customer.
15.3 The Transmission Provider shall notify the Transmission
Customer of the specific sections or articles of the Agreement which
are to be terminated or suspended pursuant to this Section 15.
15.4 Any provisions of this Agreement which are not
specifically terminated or suspended pursuant to Section 15.3 shall
not in any way be affected and shall remain in full force and effect
except insofar as the services provided pursuant to the terminated
or suspended provisions which are reflected in other provisions of
this Agreement will also be terminated or suspended.
15.5 Termination or suspension of specific provisions of this
Agreement pursuant to this Section 17 shall be without penalty to
either of the Parties, except that the rights of the Parties, if
any, which accrued prior to the date of such termination or
suspension shall be and hereby are preserved.
16 Limitation on Rights of Entry: The Transmission Provider
reserves the right, upon notice to the Transmission Customer, to
revoke or cancel the rights of entry granted under this Agreement
with regard to any particular representative of the Transmission
Customer, if, in the sole judgment of the Transmission Provider,
such revocation or cancellation is required in the interest of
national security.
17 Assistance by Contracting Parties: If assistance in
maintenance and utilization of their respective systems is rendered
by the Transmission Provider and/or the Transmission Customer, the
following terms and conditions shall apply:
17.1 If, in the maintenance or utilization of their respective
transmission systems and related facilities for the purpose of this
Agreement, it becomes necessary by reason of any emergency or
extraordinary condition for the Transmission Provider or the
Transmission Customer to request the other to furnish personnel,
materials, tools, and equipment for the maintenance or modification
of, or other work on, such transmission systems and related
facilities to insure continuity of power and energy deliveries, the
Party requested shall cooperate with the other and render such
assistance as the Party requested may determine to be available.
17.2 The Party making such request, upon receipt of properly
itemized bills, shall reimburse the Party rendering such assistance,
including overhead and administrative and general expenses. The
Transmission Customer and the Transmission Provider agree to account
for any incurred costs under a Work Order accounting procedure and
in accordance with the Uniform System of Accounts prescribed for
public utilities by the Commission.
17.3 Billing statements rendered by the Transmission Customer
and the Transmission Provider for such reimbursement shall be due 20
days from the date thereof.
Attachment C
Methodology To Assess Available Transmission Capability
The Transmission Provider is a member of the Southwest Power
Pool (SPP), and participates in the SPP's process for the
determination of Available Transfer Capability (ATC) and Total
Transfer Capability. The SPP does seasonal transfer studies to
determine the inter-area transfer capabilities. The methodology uses
standard incremental transfer capability techniques that recognize
thermal, voltage, and stability limitations as well as contractual
limitations. This methodology is based on NERC Criteria, Operating
Policies, and Reference Documents related to interchange and
transfer capability estimates. The specifics for this methodology
are available in Section 4 of SPP's publication titled ``Criteria.''
The Transmission Provider will post on the OASIS the values
calculated by the SPP. When ATC approaches zero for any interface,
the Transmission Provider may do dedicated, off-line studies in
accordance with SPP methodology to update the seasonal values of ATC
calculated by the SPP.
[[Page 517]]
Attachment D
Methodology for Completing a System Impact Study
The Transmission Provider may require System Impact Studies to
determine the feasibility of providing Transmission Service under
this Tariff. The System Impact Studies will follow the general
criteria and procedures as described below. In addition, the
Transmission Provider is in the process of developing a written
guideline for facilities evaluations, and such standards, when they
are complete, will be available to an interested party. In
determining the level of capacity available for new Transmission
Service requests, the Transmission Provider may exclude the capacity
needed to meet current and reasonably forecasted load of Native Load
Customers and Network Customers, existing Firm Point-to-Point
Transmission Service customers, previously pending applications for
Firm Point-to-Point Transmission Service, and the capacity needed to
meet existing contractual obligations.
Point-to-Point Service
The Transmission Provider will do a System Impact Study for a
Point-to-Point Transmission Service request by simulating the
proposed transaction along with all other contracted and pending
uses of the transmission system of equal or greater priority.
Criteria will be the same as those used to determine the ATC limits
posted on the OASIS.
Network Integration Service
The Transmission Provider will do a System Impact Study for a
Network Integration Transmission Service request using the criteria
and assessment practices as detailed in Parts 4 and 5 of the
Transmission Provider's annual FERC Form 715 submittal.
Attachment E
Index of Point-To-Point Transmission Service Customers
------------------------------------------------------------------------
Customer Date of service agreement
------------------------------------------------------------------------
AES Power, Inc............................ 5-18-94
Aquila Power Corporation.................. 10-31-96
Arkansas Electric Cooperative Corp........ 7-15-93 and 5-23-97
Arkansas Power & Light Company............ 6-1-88
Associated Electric Cooperative, Inc...... 6-26-92 & 10-9-92
Calpine Power Services Company............ 8-21-96
Carthage, Missouri........................ 10-25-60 & 10-26-92
Clarksville, Arkansas..................... 3-25-86
CNG Power Services Corporation............ 3-20-97
Coral Power, L.L.C........................ 12-31-96
Delhi Energy Services, Inc................ 11-16-95
Duke/Louis Dreyfus, L.L.C................. 6-19-96
Eastex Power Marketing, Inc............... 5-24-96
Electric Clearinghouse, Inc............... 9-7-95
Enron Power Marketing, Inc................ 6-23-94
Entergy Power Marketing Corp.............. 10-24-96
Entergy Services, Inc..................... 8-7-96
Federal Energy Sales, Inc................. 4-29-96
Grand River Dam Authority................. 9-9-76 & 4-27-95
Illinois Power Company.................... 2-11-97
Industrial Energy Applications, Inc....... 8-7-96
Jackson, Missouri......................... 6-19-92 & 12-8-95
Jonesboro, Arkansas....................... 6-23-92, 5-31-94, & 2-18-97
Kennett, Missouri......................... 5-22-92 & 3-31-95
KN Marketing, Inc......................... 7-12-96
LG&E Power Marketing...................... 1-27-95
Malden, Missouri.......................... 8-31-93 & 10-14-93
MidCon Power Services Corp................ 9-18-95
Minnesota Power & Light Company........... 2-18-97
Missouri Joint Municipal Electric Utility 7-29-81
Commission.
Morgan Stanley Capital Group.............. 10-7-96
National Gas & Electric, L.P.............. 11-26-96
New Madrid, Missouri...................... 2-18-96
Nixa, Missouri............................ 5-21-92
NorAm Energy Services, Inc................ 11-30-94
Oklahoma Municipal Power Authority........ 11-24-92
Pacificorp Power Marketing, Inc........... 5-15-97
PanEnergy Trading & Marketing Services, 9-13-96
L.L.C.
Paragould, Arkansas....................... 5-23-91 & 6-2-93
People's Electric Cooperative............. 12-28-90 & 2-3-94
Piggott, Arkansas......................... 11-19-92 & 4-12-95
Poplar Bluff, Missouri.................... 3-23-92 & 5-13-93
Public Service Company of Oklahoma........ 6-26-92
Rainbow Energy Marketing Corporation...... 7-6-94
Sikeston, Missouri........................ 9-15-92
Sonat Power Marketing, L.P................ 11-29-96
Southern Energy Trading and Marketing, Inc 3-31-97
Springfield, Missouri..................... 7-29-93
Tennessee Power Company................... 8-25-95
Union Electric Company.................... 6-10-94
UtiliCorp United, Inc..................... 6-4-96
Valero Power Services Company............. 4-4-96
Western Farmers Electric Cooperative...... 11-2-92, 5-28-93, & 8-24-94
Williams Energy Services Company.......... 7-12-96
WPS Energy Services, Inc.................. 6-4-97
------------------------------------------------------------------------
Attachment F
Form of Service Agreement for Network Integration Transmission
Service
Part A: Service Agreement for Network Integration Transmission Service
1 This Service Agreement, dated as of ________, is entered
into, by and between Southwestern Power Administration (Transmission
Provider or Southwestern), and ________ (Transmission Customer).
11 The Transmission Provider may revise rates for Network
Integration Transmission Service provided under this Service
Agreement pursuant to applicable Federal laws, regulations, and
policies upon written notice to the Transmission Customer.
12 The Transmission Provider may change the General Provisions
of this Agreement (Part C) upon written notice to the Transmission
Customer.
13 The Transmission Provider may recall all or part of the
capacity reserved under this Service Agreement, with no less than 36
months' notice, if such capacity is required to fulfill the
Transmission Provider's obligations under Section 5 of the Flood
Control Act of 1944.
2 The Transmission Customer has been determined by the
Transmission Provider to have a Completed Application for Network
Integration Transmission Service under the Transmission Provider's
Open Access Transmission Tariff (Tariff).
3 The Transmission Customer has provided to the Transmission
Provider a processing fee in accordance with Section 29.2 of the
Tariff.
4 A Network Operating Agreement (Operating Agreement) has been
executed between the Parties and is incorporated herein and made a
part hereof.
5 The Tariff as presently constituted or as it may be revised
or superseded is incorporated herein and made a part hereof.
6 Southwestern's rate schedule applicable to Network
Integration Transmission Service (Rate Schedule) as presently
constituted or as it may be revised or superseded is incorporated
herein and made a part hereof.
7 Service under this Service Agreement shall commence on the
latest of (1) ________, or (2) the date on which construction of any
Direct Assignment Facilities and/or Network Upgrades are completed,
or (3) on the first day of the month following execution by both
Parties. Service under this Service Agreement shall terminate on
________.
8 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.
9 All schedules for service under this Agreement which cross
Control Area boundaries between the Transmission
[[Page 518]]
Provider and interconnected utilities shall conform to standards for
scheduled interchange of the North American Electric Reliability
Council and the applicable regional reliability council.
10 The Transmission Provider is not obligated under this
Agreement to satisfy any deficiencies that may occur for the
Transmission Customer as a result of suspension or reduction of
schedules by a Third Party, nor is the Transmission Provider obliged
to notify any party if such schedules are suspended or reduced due
to the action of a Third Party.
11 The Parties specifically recognize that the Transmission
Provider's ability to construct new or upgraded facilities to meet
the Designated Network Loads of the Transmission Customer are
contingent upon the availability of funds by the U.S. Congress to
the Transmission Provider for such purpose, as set forth in Section
3 of Part C, ``General Provisions Applicable to Transmission
Service,'' appended to this Service Agreement.
11.1 The Transmission Provider's responsibilities to the
Transmission Customer pursuant to Section 28.2 of the Tariff, or
under other provisions of the Tariff which may require construction
of additional transmission facilities in the system of the
Transmission Provider to meet Designated Network Loads, are
specifically limited to the extent that funds are available to the
Transmission Provider for such purposes.
11.2 In the event that such facilities may be needed to meet
Designated Network Loads, the Transmission Customer may elect to
provide, in advance, the necessary funds for such construction by
the Transmission Provider, in accordance with a separate
construction agreement between the Parties. The Transmission
Provider's ability to accept such funds is subject to the authority
granted to the Transmission Provider by the U.S. Congress.
12 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: Administrator, Southwestern Power
Administration, One West Third Street, Suite 1400, Tulsa, OK 74103.
Transmission Customer:
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----------------------------------------------------------------------
----------------------------------------------------------------------
IN WITNESS WHEREOF, the Parties have caused this Service
Agreement to be executed by their respective authorized officials.
SOUTHWESTERN POWER ADMINISTRATION
By:--------------------------------------------------------------------
ADMINISTRATOR
One West Third Street, Suite 1400
Tulsa, OK 74103
Date:------------------------------------------------------------------
Reviewed by Southwestern's General Counsel:
By:--------------------------------------------------------------------
(TRANSMISSION CUSTOMER)
By:--------------------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
Part B: Specifications for Network Integration Transmission Service
1 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 Transmission
Customer's designated Network Resources, as set forth in Section 3
of this Part B, to the Transmission Customer's Designated Network
Loads which are located in the Transmission Provider's Control Area,
as set forth in Section 4 of this Part B.
2 The Transmission Provider will provide non-firm transmission
service (Secondary Transmission Service) from non-designated Network
Resources to meet Designated Network Loads, on an as-available
basis, under the terms of this Service Agreement and in accordance
Section 28.4 and other applicable Sections of the Tariff.
3 Designated Network Resources to be delivered into [or from]
the Transmission Provider's Control Area on behalf of the Network
Customer:
3.1 [To be specified in each Agreement, using information
provided in the Transmission Customer's application for Network
Integration Transmission Service.]
3.2 Any change in Network Resources shall be effected in
accordance with procedures set forth in the Tariff.
4 Designated Network Loads to be served under this Service
Agreement:
4.1 [To be specified in each Agreement, using information
provided in the Transmission Customer's application for Network
Integration Transmission Service.]
4.2 Any change in Designated Network Loads shall be effected in
accordance with procedures set forth in the Tariff.
5 Specific operations under this Service Agreement are set
forth in the Operating Agreement
6 Service under this Agreement may be subject to some
combination of the charges detailed below.
6.1 The Network Transmission Capacity Charge is set forth in
the Rate Schedule. The specific capacity which the Transmission
Customer will be invoiced for is computed in accordance with
procedures set forth in the Tariff and updated in conformity to such
procedures. The initial charges and the specific basis for such
charges for Network Integration Transmission Service applicable to
this Service Agreement are included in the Operating Agreement.
6.2 Real Power Losses will be applied and charged in accordance
with the Rate Schedule.
6.3 Ancillary Services Charges are set forth in the Rate
Schedule. The specific Ancillary Services to be charged initially
under this Agreement are listed below. Changes in Ancillary
Services, if applicable, are made in accordance with the Rate
Schedule.
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
6.4 System Impact and/or Facilities Study Charge(s): (to be
filled in if applicable)
----------------------------------------------------------------------
----------------------------------------------------------------------
6.5 Direct Assignment Facilities Charge: (to be filled in if
applicable)
----------------------------------------------------------------------
6.5 Penalties Associated with unauthorized use of the
Transmission Provider's Transmission System and associated
facilities, as provided in the Operating Agreement or the Rate
Schedule: ________.
6.6 Other Charges: To be filled in and defined if applicable.
Part C: General Provisions Applicable to Transmission Service
1 Propriety of Rates: The Transmission Provider shall bill the
Transmission Customer for the Transmission Customer's purchases of
power, energy, and other services in accordance with the Rate
Schedule, which is placed in effect pursuant to statute.
1.1 The Transmission Customer hereby agrees to promptly pay the
Transmission Provider under such Rate Schedule, whether or not the
Transmission Customer agrees with the propriety or the levels of the
rates placed into effect pursuant to law, regulation, or the order
of an appropriate authority, subject to the Transmission Customer's
rights to terminate service.
1.2 In the event that the U.S. Congress amends the manner in
which the Transmission Provider calculates or charges for its
products and services, the Transmission Customer hereby agrees to
promptly pay in such an amended manner, subject to the Transmission
Customer's right to terminate.
2 Changes in Rates: The rates and/or terms and conditions set
forth in the Rate Schedule may change upon confirmation and/or
approval by the appropriate authority having responsibility to so
confirm and/or approve rate schedules, and, whether on an interim
basis or as finally confirmed and/or approved, such rates may be
increased, decreased, modified, or superseded at any time and from
time to time.
2.1 If such rates are so increased, decreased, modified, or
superseded, the rates and terms and conditions shall thereupon
become effective and applicable to the Transmission Service
furnished by the Transmission Provider under this Agreement, in
accordance with and on the effective date specified in the order of
the appropriate authority.
2.2 The Transmission Provider shall promptly notify the
Transmission Customer in writing of the redetermination and/or
changes and modifications made in the then-effective Transmission
Provider's rate schedules for Transmission Service.
2.3 If such notice advises that the rates to be paid by the
Transmission Customer for the Transmission Service furnished by the
Transmission Provider under this Agreement are greater than the
then-effective rate for such service, The Transmission Customer may,
by written notice to the Transmission Provider at any time within 90
days
[[Page 519]]
following the date of receipt of such notice from the Transmission
Provider, terminate this Agreement in its entirety, such termination
to become effective as of the last day of any month following no
less than 6 months after the date of receipt by the Transmission
Provider of such notice of termination from the Transmission
Customer.
2.4 In the event that the Transmission Customer elects to
terminate this Agreement pursuant to this Section 2, the
Transmission Customer shall pay for services under this Agreement at
the then-effective rates during the interim between the date of such
notice and the effective termination date specified in such notice.
3 Availability of Funds to the Transmission Provider: This
Agreement and all rights and obligations hereunder, and the
expenditure of funds by the Transmission Provider under its
provisions, are expressly conditioned and contingent upon the U.S.
Congress's making available (through direct appropriation,
authorization of a revolving fund, the authority to borrow funds, or
through such other means as it may provide) the necessary funds to
enable the Transmission Provider to carry out the provisions of this
Agreement, and if such funds are not available, this Agreement shall
terminate and have no further force or effect as of the last day for
which funds were available, and the Transmission Customer hereby
releases the Transmission Provider from any and all liability for
failure to perform and fulfill its obligations under this Agreement
for that reason.
3.1 No obligation contained herein for the future payment of
money by the Transmission Provider, or liability on the part of the
Transmission Provider for breach of any of the provisions contained
herein, shall be binding upon or enforceable against the
Transmission Provider unless and until funds, as provided in this
Section 3, are available out of which such obligations or liability
can be legally paid.
3.2 Nothing in this Agreement may be considered as implying
that the U.S. Congress will, at a later date, appropriate funds
sufficient to meet any deficiencies or obligations incurred under
this Agreement.
4 Covenant Against Contingent Fees. The Transmission Customer
warrants that no person or selling agency has been employed or
retained to solicit or secure this Agreement upon an agreement or
understanding for a commission, percentage, brokerage, or contingent
fee, except 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
this Agreement without liability, or, at its discretion, to add to
the Agreement price or consideration the full amount of such
commission, percentage, brokerage, or contingent fee.
5 Termination for Breach. If either Party breaches a material
provision of this Agreement, the other Party, at its option, may
terminate this Agreement upon 30 days' prior written notice of its
intention to do so, and this Agreement ipso facto shall terminate at
the end of such 30-day period unless such violation is corrected
within that period. Neither Party shall be considered to be in
default or breach with respect to any obligation under this
Agreement if prevented from fulfilling such obligation by reason of
an Uncontrollable Force.
6 Convict Labor. In connection with the performance of work
under this Agreement, the Transmission Customer agrees not to employ
any person undergoing sentence of imprisonment except as provided by
Public Law 89-176, September 10, 1965 (18 U.S.C. 4062 (c)(2)), and
Executive Order 11755, December 29, 1973.
7 Equal Employment Opportunity. During the performance of this
Agreement, the Transmission Customer agrees to abide by and to
fulfill the nondiscrimination requirements of the ``equal
opportunity clause'' contained in Section 202 of Executive Order
11246 dated September 24, 1965 (30 FR 12319), any Executive Order
amending such order, and any other Executive Order superseding such
order.
8 Affirmative Action for Disabled Veterans and Veterans of the
Vietnam Era. During the performance of this Agreement, the
Transmission Customer agrees to comply with Section 402 of the
Vietnam Era Veterans Readjustment Assistance Act of 1974, Public Law
93-508 as it amends Public Law 92-540, to take affirmative action to
employ and advance in employment qualified disabled veterans and
veterans of the Vietnam era, and to fulfill the requirements of the
``affirmative action clause,'' 38 USCA Sections 2011 and 2012
(1979); 41 CFR 60-250 et seq.
9 Affirmative Action for Handicapped Workers. During the
performance of this Agreement, the Transmission Customer agrees to
comply with Section 503 of the Rehabilitation Act of 1973, Public
Law 93-516, to take affirmative action to employ and advance in
employment qualified handicapped individuals, and to otherwise
fulfill the requirements of the ``affirmative action clause,'' 29
USCA Section 793 (1979); 41 CFR 60-741 et seq.
10 Contract Work Hours and Safety Standards. This Agreement, to
the extent that it is of a character specified in Section 103 of the
Contract Work Hours and Safety Standards Act, 40 U.S.C. 327-333
(1986), is subject to the provisions of the said Act and to
regulations promulgated by the Secretary of Labor pursuant to the
said Act. The following provisions are applicable only to
Transmission Customers which receive service through facilities
which are (1) jointly used by the Transmission Provider and the
Transmission Customer, (2) where the Transmission Customer would
have occasion to enter the facilities of the Transmission Provider,
(3) where the Transmission Customer owns facilities installed on the
property of the Transmission Provider, and/or (4) when the
Transmission Customer takes service directly from facilities owned
and maintained by the Transmission Provider.
11 Meter Tests and Adjustments. Any metering equipment which
may be used in power accounting for Transmission Service under this
Agreement shall be inspected and tested at least once each year by
the Party responsible, and at any reasonable time upon request by
either Party. Metering equipment found to be defective or inaccurate
shall be repaired and readjusted or replaced by the owner.
11.1 A meter shall be considered inaccurate if it is found to
deviate from an accurate standard meter in excess of 0.5 percent
when tested at 100 percent of load or 1.0 percent when tested at 10
percent of load.
11.2 If any meter inspection or test discloses an error
exceeding 2 percent, a correction based upon the inaccuracy found
shall be made on the records of electric service furnished since the
beginning of the monthly billing period immediately preceding the
billing period during which the test was made, and such correction,
when made, shall constitute full adjustment of any claim between the
parties hereto arising out of such inaccuracy of metering equipment.
12 Reliability, Safety, Health, and Environmental Requirements
in Regard to Construction, Operation, and Maintenance on U.S.
Government Property. The provisions of this Section 12 shall apply
only if the Transmission Customer, its agents or contractors, or its
member entities perform maintenance, operations, or construction on
the property of the U.S. Government (Government), or on easements
shared by the Government and the Transmission Customer.
12.1 Such construction, maintenance, and operation shall be
performed in accordance with standards at least equal to those
provided by the National Electrical Safety Code and shall conform to
safety, environmental, and security procedures identified by
Transmission Provider as appropriate to each facility in which such
work is performed. The Transmission Provider provides such written
procedures in each of the facilities it maintains and to affected
Transmission Customers.
12.2 The Transmission Customer and/or its member entities shall
take all reasonable precautions in the performance of such work to
protect the public and the environment. The Transmission Customer
and/or its member entities shall comply with all applicable local,
state, and Federal regulations and requirements in the performance
of such work, including, but not limited to, the National
Environmental Policy Act, the Clean Air Act; the Clean Water Act;
the Comprehensive Environmental Responsibility, Compensation, and
Liability Act; the Toxic Substances Control Act; the Resource
Conservation and Recovery Act; the Superfund Amendments and
Reauthorization Act (SARA); SARA Title III (Emergency Planning and
Community Right-to-Know Act of 1986); and the Occupational Safety
and Health Act.
12.3 In the event that the Transmission Provider, at its sole
option and in its sole judgment, determines that construction,
maintenance, or operation of facilities which are performed under
this Agreement by the Transmission Customer, and/or one of its
member entities, do not meet the standards and/or regulations and
requirements specified in this Section 12, or if the Transmission
Provider determines, in its sole judgment, that a condition exists
which provides a potentially adverse impact (1) on the reliability
of services provided by
[[Page 520]]
Transmission Provider to its customers, (2) on the safety and/or
health of the public or employees and agents of the parties hereto,
and/or (3) on the environment, then Transmission Provider may
provide written notice to the Transmission Customer and/or its
member entity of the deficient condition; Provided, That, if such
condition, in Transmission Provider's sole judgment and at
Transmission Provider's sole option, requires immediate attention
and does not allow time for such notice, Transmission Provider will
remedy the condition and, where appropriate, bill the Transmission
Customer.
12.4 Where, in the Transmission Provider's sole judgment,
remedy of the said deficient condition is not time critical, the
Transmission Customer and/or its member entity shall provide a
written plan and schedule to Transmission Provider within 30 days of
receipt of the said written notice. Such plan and schedule shall
provide for correction of the said deficiency at the earliest
possible time available to the Transmission Customer and/or its
member entity; Provided, That, the maximum time allowed for the
Transmission Customer and/or its member entity to correct any such
deficiency shall not exceed 18 months from receipt of the said
written notice. The Transmission Customer shall coordinate or, if
applicable, cause its member entity to coordinate, any work and
outages which may involve Transmission Provider's facilities with
Transmission Provider's Dispatch Center (Dispatch Center) in
Springfield, Missouri.
12.5 Unless otherwise agreed in writing, correction of
deficiencies pursuant to this Section 12 shall be at the expense of
the Transmission Customer.
12.6 If the Transmission Customer and/or its member entity
fails to correct the deficiency within the time provided pursuant to
this Section 12, the Transmission Provider shall have the right, at
its sole option and in its sole discretion, to terminate service
through the affected facilities until such deficiencies are
corrected to the satisfaction of Transmission Provider.
12.7 If, within the time period provided pursuant to this
Section 12, an emergency condition occurs which, in the sole
judgment of Transmission Provider, may cause an adverse impact on
the reliability of the Transmission System of Transmission Provider
and/or on the environment, or which poses a hazard to the safety
and/or health of the public or employees and agents of the parties
hereto, then Transmission Provider may, at its sole option, remedy
or repair such condition or equipment and bill the Transmission
Customer, and the Transmission Customer agrees to render the
Transmission Provider reimbursement.
13 Right of Installation and Access: Each Party grants to the
other permission, or will obtain such permission for the other
Party, to install, maintain, and operate, or cause to be installed,
maintained, and operated, on the System of Transmission Provider and
on the System of the Transmission Customer, at the Point(s) of
Delivery between the System of Transmission Provider and the System
of the Transmission Customer utilized under this Agreement, any and
all terminal equipment and associated electrical apparatus and
devices necessary in the performance of this Agreement.
13.1 Each party shall permit, or shall obtain permission for,
duly authorized representatives and employees of the other Party to
enter upon the System of the Transmission Provider and the System of
the Transmission Customer at the said Point(s) of Delivery for the
purpose of reading or checking meters; for inspecting, testing,
repairing, renewing, or exchanging any or all of the equipment owned
by the other party located on such premises; or for the purpose of
performing any other work necessary in the performance of this
Agreement.
13.2 Access for any work performed by one party under this
Section 13 which may affect the other Party's equipment shall
normally be preceded by at least one day's notice to the affected
Party, except in the event of an emergency, in which case such
notice shall be made as soon as possible after such emergency
occurrence. Notice to Transmission Provider pursuant to this Section
13 shall be made to the Dispatch Center.
13.3 Any access to property controlled by the Transmission
Provider shall include notification to Transmission Provider at the
time of entry. Any employee or agent of the Transmission Customer,
or of its member entities, who enters a Transmission Provider
facility is expected to call the Dispatch Center from a telephone
located in the control building in that facility and to identify
himself or herself. Security devices located in the control
buildings at Transmission Provider facilities sound an alarm in the
Dispatch Center when the building is entered. Local law enforcement
officers may be asked to investigate any unidentified entry.
13.4 Any equipment, apparatus, or devices installed on the
System of the Transmission Provider by the Transmission Customer, as
provided under this Section 13, shall be clearly and permanently
marked to indicate ownership, and, in addition, a detailed
description of each item so installed (including, if applicable,
manufacturer's name, serial number, model number, etc.) shall be
communicated to Transmission Provider to aid in maintenance of plant
accounts.
13.5 In the event the equipment, apparatus, or devices are not
marked in accordance with Section 13.4, ownership of said equipment,
apparatus, or devices shall be presumed to be vested in Transmission
Provider.
13.6 The Transmission Customer agrees that, if requested by
Transmission Provider, the description required under Section 13.4
shall include a detailed analysis of all dielectrical oil,
including, but not limited to, tests for polychlorinated biphenyls
(PCBs). If such analysis indicates the presence of a known hazardous
substance, which, in the Transmission Provider's sole judgment,
presents a significant hazard to the environment or to the health
and safety of employees of the parties hereto, the Transmission
Provider may require, at its sole option, by written request,
removal of any equipment containing such substance, and the
Transmission Customer agrees to comply with such request for removal
at no cost to Transmission Provider.
14 Right of Removal: Any and all equipment, apparatus, or
devices placed or installed or caused to be placed or installed by
the Parties on or in the System of the Transmission Provider or the
System of the Transmission Customer shall be and shall remain the
property of the Party owning and installing such equipment,
apparatus, devices, or facilities, regardless of the mode or manner
of annexation or attachment to real property, and, upon the
termination of this Agreement, the owner thereof shall have the
right to enter upon the premises or system of the other and shall,
within a reasonable time, remove such equipment, apparatus, devices,
or facilities, subject to the provisions of Section 13.5.
15 Right to Upgrade Facilities: The Transmission Provider
reserves the right to modify or upgrade its Transmission System and
any of the elements which support such Transmission System,
including, but not limited to, changes in: (1) The Transmission
Provider's transmission voltages, (2) The Transmission Provider's
transmission system components, (3) The Transmission Provider's
communications system, (4) The Transmission Provider's Supervisory
Control and Data Acquisition (SCADA) System, and (5) other
modifications necessary to comply with the standards and/or
regulations and requirements mentioned in Section 16.
15.1 If, during the term of this Agreement, the Transmission
Provider determines, in its sole judgment and at its sole option,
that modifications or upgrades to its Transmission System and
associated facilities are required, then, in that event, the
Transmission Customer shall be responsible for any and all costs and
expenses incurred by the Transmission Customer in order to continue
to receive services provided under this Agreement.
15.2 If the Transmission Customer elects not to make changes in
its facilities which, in The Transmission Provider's judgment, are
required for the Transmission Customer to continue to receive
reliable service from the Transmission Provider's modified or
upgraded facilities, then the Transmission Customer will discontinue
receipt of the services provided under this Agreement which are
dependent on such modified or upgraded facilities, and the
provisions of this Agreement which describe such services shall be
terminated or, at the Transmission Provider's sole option,
suspended, until the Transmission Customer completes the changes in
its facilities which the Transmission Provider, in its sole
judgment, deems necessary for safe and reliable service to the
Transmission Customer.
15.3 The Transmission Provider shall notify the Transmission
Customer of the specific sections or articles of the Agreement which
are to be terminated or suspended pursuant to this Section 15.
15.4 Any provisions of this Agreement which are not
specifically terminated or suspended pursuant to Section 15.3 shall
not in any way be affected and shall remain in full force and effect
except insofar as the services provided pursuant to the terminated
[[Page 521]]
or suspended provisions which are reflected in other provisions of
this Agreement will also be terminated or suspended.
15.5 Termination or suspension of specific provisions of this
Agreement pursuant to this Section 17 shall be without penalty to
either of the Parties, except that the rights of the Parties, if
any, which accrued prior to the date of such termination or
suspension shall be and hereby are preserved.
16 Limitation on Rights of Entry: The Transmission Provider
reserves the right, upon notice to the Transmission Customer, to
revoke or cancel the rights of entry granted under this Agreement
with regard to any particular representative of the Transmission
Customer, if, in the sole judgment of the Transmission Provider,
such revocation or cancellation is required in the interest of
national security.
17 Assistance by Contracting Parties: If assistance in
maintenance and utilization of their respective systems is rendered
by the Transmission Provider and/or the Transmission Customer, the
following terms and conditions shall apply:
17.1 If, in the maintenance or utilization of their respective
transmission systems and related facilities for the purpose of this
Agreement, it becomes necessary by reason of any emergency or
extraordinary condition for the Transmission Provider or the
Transmission Customer to request the other to furnish personnel,
materials, tools, and equipment for the maintenance or modification
of, or other work on, such transmission systems and related
facilities to insure continuity of power and energy deliveries, the
Party requested shall cooperate with the other and render such
assistance as the Party requested may determine to be available.
17.2 The Party making such request, upon receipt of properly
itemized bills, shall reimburse the Party rendering such assistance,
including overhead and administrative and general expenses. The
Transmission Customer and the Transmission Provider agree to account
for any incurred costs under a Work Order accounting procedure and
in accordance with the Uniform System of Accounts prescribed for
public utilities by the Commission.
17.3 Billing statements rendered by the Transmission Customer
and the Transmission Provider for such reimbursement shall be due 20
days from the date thereof.
Attachment G
Network Operating Agreement
To be provided by the Transmission Provider at such time as the
Transmission Provider has negotiated or offered a Network
Integration Transmission Service Agreement. The terms and conditions
under which the Network Customer will be required to operate its
facilities and the technical and operational matters associated with
the implementation of Network Integration Transmission Service will
be specified in a separate Network Operating Agreement and appended
to the applicable Service Agreement.
The Network Operating Agreement may include, but is not limited
to, provisions addressing the following matters:
Authorized Representatives of the Parties
Network Operating Committee
Load Following
System Protection
Redispatch to Manage Transmission Constraints
Maintenance of Facilities
Load Shedding
Operation Impacts
Service Conditions
Data, Information and Reports
Metering
Communications
System Regulation and Operating Reserves
Assignment
Notices
Accounting for Transmission Losses
Ancillary Services
Penalties for Unauthorized Use of Transmission Provider's System
Attachment H
Annual Transmission Revenue Requirement For Network Integration
Transmission Service
1.0 The Annual Transmission Revenue Requirement for purposes of
the Network Integration Transmission Service is set forth in the
Transmission Provider's rate schedule for transmission services.
Attachment I
Index of Network Integration Transmission Service Customers
Customer Date of Service Agreement.
Transmission Provider has no Network Customers at this time.
[FR Doc. 98-132 Filed 1-5-98; 8:45 am]
BILLING CODE 6450-01-P