[Federal Register Volume 67, Number 245 (Friday, December 20, 2002)]
[Notices]
[Pages 78090-78114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32070]



[[Page 78089]]

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Part III





Department of Energy





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Bonneville Power Administration



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2004 Transmission Rate Case; Public Hearing and Opportunities for 
Public Review and Comment; Notice

  Federal Register / Vol. 67, No. 245 / Friday, December 20, 2002 / 
Notices  

[[Page 78090]]


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DEPARTMENT OF ENERGY

Bonneville Power Administration

[BPA File No. TR-04]


2004 Transmission Rate Case; Public Hearing and Opportunities for 
Public Review and Comment

AGENCY: Bonneville Power Administration (BPA), Department of Energy 
(DOE).

ACTION: Notice of 2004 Transmission Rate Case.

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SUMMARY: BPA File No. TR-04. BPA requests that all comments and 
documents intended to become part of the Official Record in this 
proceeding contain the file number designation TR-04.
    BPA must establish transmission and ancillary service rates to be 
effective October 1, 2003, when current transmission and ancillary 
service rates expire. BPA's Transmission Business Line (TBL) held a 
public workshop in August 2002 to begin discussing with interested 
parties issues associated with the upcoming 2004 Transmission Rate 
Case. At the parties' suggestion, TBL and the parties met often over 
the next two months to negotiate settlement of the rate case. The 
resulting Settlement Agreement includes transmission and ancillary 
service rate levels for the Fiscal Years 2004 and 2005 rate period, and 
addresses a small set of other issues. The Settlement Agreement was 
sent to TBL customers and interested parties for signature. TBL signed 
the Settlement Agreement after receiving signed agreements from most 
TBL customers. TBL's initial rate proposal reflects the terms of the 
Settlement Agreement.
    By this notice, BPA announces its proposed transmission and 
ancillary service rates to be effective on October 1, 2003, and the 
commencement of the 2004 Transmission Rate Case.

DATES: Persons wishing to become formal parties to the proceeding must 
notify BPA in writing of their intention to do so by submitting a 
petition to intervene at the address provided below. Petitions to 
intervene must be received by BPA by 4:30 p.m., Pacific Time, on 
January 8, 2003. Petitions to intervene are discussed further below, in 
Part III.A.
    The Rate Case will begin with a pre-hearing conference at 9 a.m. on 
January 13, 2003, in Portland, Oregon.
    Written comments by non-party participants must be received by 
March 21, 2003, to be considered in the Record of Decision (ROD).

ADDRESSES:
    1. Petitions to intervene should be directed to George Schaaf, 
Hearing Clerk--LT-7, Bonneville Power Administration, 905 NE 11th Ave., 
Portland, Oregon, 97232. In addition, a copy of the petition must be 
served concurrently on BPA's General Counsel and directed to Barry 
Bennett--LT-7, Office of General Counsel, 905 NE 11th Ave., Portland, 
Oregon 97232 (see Part III.A for more information).
    2. Written comments by participants should be submitted to the 
Manager, Corporate Communication--DM-7, Bonneville Power 
Administration, P.O. Box 12999, Portland, Oregon, 97212. You may also 
e-mail your comments to: [email protected].
    3. The pre-hearing conference will be held in the BPA Rates Hearing 
Room, 2nd floor, 911 NE 11th Ave., Portland, Oregon.

FOR FURTHER INFORMATION CONTACT: Information may also be obtained from 
Michael Hansen--DM-7, Public Involvement and Information Specialist, 
Bonneville Power Administration, P.O. Box 3621, Portland, Oregon, 
97208-3621; by phone at (503) 230-4328 or toll free at 1-800-622-4519; 
or via e-mail to [email protected].
    You may also contact Dennis Metcalf, Transmission Rate Case 
Manager, Bonneville Power Administration, P.O. Box 491, Vancouver, 
Washington, 98666.

SUPPLEMENTARY INFORMATION:

Table of Contents

Part I--Introduction and Procedural Background
Part II--Purpose and Scope of Hearing
Part III--Public Participation
Part IV--Major Analyses and Summary of Proposal
Part V--2004 Transmission and Ancillary Service Rate Schedules

Part I--Introduction and Procedural Background

    Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i), 
requires that BPA's rates be established according to certain 
procedures. These procedures include, among other things, publication 
of notice of the proposed rates in the Federal Register; one or more 
hearings conducted as expeditiously as practicable by a Hearing 
Officer; opportunity for both oral presentation and written submission 
of views, data, questions, and arguments related to the proposed rates; 
and a decision by the Administrator based on the record. BPA's rate 
proceedings are governed by BPA's Procedures Governing Bonneville Power 
Administration Rate Hearings, 51 FR 7611 (1986) (Procedures). These 
procedures implement the statutory section 7(i) requirements. This rate 
proceeding will be governed by section 1010.9 of the Procedures 
providing for a general rate proceeding, as modified by the Hearing 
Officer at the pre-hearing conference. However, BPA will not hold any 
field hearings to provide for non-party participant oral comments. 
Section 1010.7 of the Procedures prohibits ex parte communications. BPA 
imposed ex parte limitations beginning December 10, 2003.
    The Bonneville Project Act, 16 U.S.C. 832; the Flood Control Act of 
1944, 16 U.S.C. 825s; the Federal Columbia River Transmission System 
Act, 16 U.S.C. 838; the Northwest Power Act, 16 U.S.C. 839; and the 
Federal Power Act, 16 U.S.C. 212(i)(1)(B)(ii) provide guidance 
regarding BPA's ratemaking. The Northwest Power Act requires BPA to set 
rates that are sufficient to recover, in accordance with sound business 
principles, the costs of the acquisition, conservation, and 
transmission of electric power, including amortization of the Federal 
investment over a reasonable period of years, and the other costs and 
expenses incurred by the Administrator. The Federal Columbia 
Transmission System Act requires that the costs of the Federal Columbia 
River Transmission System be equitably allocated between Federal and 
non-Federal power utilizing the system. In addition, rates for Federal 
Energy Regulatory Commission (Commission) ordered transmission service 
shall be set to permit the recovery of all costs incurred in connection 
with the transmission service and necessary associated services. BPA's 
proposed 2004 Transmission and Ancillary Service Rate Schedules are 
published in Part V below. The Settlement Agreement, and the rate 
studies and documentation listed in Part IV will be provided to parties 
at the pre-hearing conference to be held on January 13, 2003, beginning 
at 9 a.m., at the BPA Rates Hearing Room, 2nd floor, 911 NE 11th Ave., 
Portland, Oregon.
    To request a copy of the Settlement Agreement or any of the studies 
by telephone, call BPA's document request line, (503) 230-4328 or call 
toll-free 1-800-622-4519. Please request the document by its listed 
title. Also state whether you require the accompanying documentation 
(these can be quite lengthy); otherwise the study alone will be 
provided. The Settlement Agreement, studies and documentation will also 
be available on BPA's Web site at http://www2.transmission.bpa.gov/ratecase.
    A proposed schedule for the formal hearing is provided below. A 
final schedule will be established by the

[[Page 78091]]

Hearing Officer at the pre-hearing conference.

January 13, 2003--Pre-hearing Conference and Filing of BPA Direct Case
January 16, 2003--Clarification
January 21, 2003--Objections to Initial Proposal Due
January 23, 2003--Scheduling Conference
July 28, 2003--Final Record of Decision

    If no objections to the TBL's Initial Proposal are filed, it will 
not be necessary to schedule additional dates for the hearing. In such 
case, the date for the Final Record of Decision can be adjusted. If any 
party objects to the Initial Proposal, TBL may continue to defend the 
Initial Proposal or submit a revised proposal. If objections are filed, 
the TBL proposes to meet with the parties before the scheduling 
conference to discuss an appropriate schedule that provides sufficient 
time for parties that have objected to the Initial Proposal to file a 
direct case, for the TBL to file a revised proposal, if it so chooses, 
and for all parties to respond to such revised proposal, if any, and to 
the testimony of the other parties.

Part II--Purpose and Scope of Hearing

A. Key Components

1. Overview
    BPA is committed to marketing its power and transmission services 
separately in a manner that is modeled after the regulatory initiatives 
to promote competition in wholesale power markets that were adopted by 
the Commission in 1996. The Commission's initiatives in Orders 888 \1\ 
and 889 \2\ directed public utilities to separate their power merchant 
functions from their transmission functions; unbundle transmission and 
ancillary services from wholesale power services; and set separate 
rates for wholesale generation, transmission, and ancillary services. 
Although BPA is not required by statute to follow the Commission's 
regulatory directives, to the extent permitted by law BPA has separated 
its power and transmission operations and unbundled its rates in a 
manner consistent with the directives concerning open access 
transmission service. Accordingly, in 1996 BPA established separate 
business lines: BPA's Power Business Line (PBL), which performs BPA's 
wholesale merchant functions, and BPA's Transmission Business Line 
(TBL), which performs BPA's transmission system operations and 
reliability functions.
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    \1\ Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Pubic Utilities; Recovery of 
Stranded Costs by Public Utilities and Transmitting Utilities, FERC 
Stats. & Regs. para. 31,036 (1996).
    \2\ Open Access Same-Time Information System (formerly Real-Time 
Information Networks) and Standards of Conduct, FERC Stats. & Regs. 
para. 31,035 (1996).
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    Beginning with the 2002 rate case, BPA has held separate rate 
proceedings to set power and transmission rates. In the 2002 Power Rate 
Case, the PBL established power rates to be effective through September 
30, 2006. In the 2002 Transmission Rate Case the TBL established 
transmission rates to be effective through September 30, 2003. The 2004 
Transmission Rate Case proceeding will establish transmission rates for 
the period October 1, 2003, through September 30, 2005.
2. PBL as a Party to the Rate Case
    Because BPA has separated its power and transmission functions and 
sets its power and transmission rates in separate proceedings, it is 
appropriate that the PBL be a party to the transmission rate 
proceeding. Accordingly, PBL will be considered a party to the 
Transmission Rate Case for all purposes under the BPA Procedures. The 
PBL may file testimony and briefs as a party and will be entitled to 
all other procedural rights of a party. In particular, the PBL shall be 
considered a party for purposes of ex parte communications.

B. Settlement Agreement

    TBL and most of its customers are parties to a Settlement Agreement 
that provides for TBL to submit an initial transmission rate proposal 
that incorporates the provisions of the Settlement Agreement. The 
Settlement Agreement provides for a 1.5% increase for most transmission 
and ancillary service rates, and a 2.6% increase for the Network 
Integration (NT) rate. The additional increase in the NT rate is 
intended to recover $1 million of redispatch costs. The Settlement 
Agreement also includes the following additional provisions: a revised 
rate structure for the Energy Imbalance and Generation Imbalance rates; 
a reduced Unauthorized Increase Charge; the TBL's commitment to hold a 
series of public meetings to address certain TBL business practices; 
TBL's commitment to implement systems no later than October 1, 2003, 
that allow Point-to-Point Service customers to redirect firm 
transmission service; and payment by TBL to PBL of $3 million per year 
for redispatch services described in a revised Attachment K to BPA's 
Open Access Transmission Tariff (OATT). The Settlement Agreement 
provides that TBL agrees to file with the Commission, and the 
signatories to the Settlement Agreement agree not to challenge, the 
revised Attachment K. BPA will file the revised Attachment K as a 
proposed amendment to BPA's OATT to be effective as of October 1, 2003. 
Such filing will not be part of this rate proceeding.
    The Settlement Agreement recognizes the possibility that parties to 
the 2004 Transmission Rate Case that have not signed the Settlement 
Agreement may object to the TBL's Initial Proposal. If any party 
objects to the Initial Proposal, TBL may continue to defend the Initial 
Proposal or submit a revised proposal. If TBL submits a revised 
proposal, signatories to the Settlement Agreement may contest any 
aspect of the revised proposal. If TBL does not revise its Initial 
Proposal, and the Administrator establishes transmission rates 
consistent with the Initial Proposal, the signatories have agreed not 
to challenge approval of the rates by FERC, or in any judicial forum.

C. Cost Increases

    Over the past few years there has been increasing focus on the 
reliability and availability of the transmission system. In 1996, a 
major transmission outage affected the western United States. From 2000 
to 2001, California deregulation, drought in California and the 
Northwest, and bottlenecks in the transmission system all focused the 
region on system reliability and availability and their effect on 
energy costs. In order to ensure transmission system reliability and 
availability, BPA developed an infrastructure plan with objectives to 
reinforce the transmission system to continue compliance with national 
reliability standards; maintain and improve the availability of the 
transmission system; and remove constraints that limit electricity 
trading and BPA's ability to maintain the system. The TBL capital 
program increase of about 10 percent in the FY 2004-2005 period over 
current levels reflects the need for system additions to remove 
transmission bottlenecks resulting from load growth and the changing 
generation patterns and uses, and for replacements of older facilities. 
On the expense side, increased expenses consist primarily of additional 
interest and depreciation associated with the increased capital 
program. TBL will hold increases in operating expenses to less than the 
rate of inflation as decided by the Administrator in the Programs in 
Review process. The operating expenses include the $3 million per year 
that the TBL will pay PBL for redispatch services under the OATT, as 
provided in the Settlement Agreement.

[[Page 78092]]

D. Overview of the Public Process

1. Transmission Rate Case Customer Workshops
    In preparation for the 2004 Transmission Rate Case, TBL held a 
public workshop for customers and interested parties on August 14, 
2002. At that workshop, parties recommended that a rate case settlement 
be explored. During September and October of 2002, the TBL met 
regularly with customers and interested parties to negotiate a 
settlement of transmission and ancillary service rate levels and 
resolution of other key issues.
2. Program in Review Workshops
    In summer and fall 2002, TBL provided an opportunity for public 
participation and input on TBL program cost levels through the Programs 
InReview (PIR) process. PIR opened on June 19, 2002, with a widespread 
notification by mail to about 3000 TBL customers and interested 
parties. Notices were also published on TBL's external Web site. Five 
public meetings were held around the region during July 2002. At these 
public meetings, TBL discussed issues concerning future capital 
investments in the transmission system and proposed expense levels for 
transmission system development, operation, maintenance, and 
reliability for FY 2004-2006. A total of 130 entities attended the 
regional meetings. TBL also provided informational materials through 
direct mailings, e-mailings, and publication on TBL's external Web 
site, and through making staff available to answer questions. In 
response to a request from customers for additional information and 
discussion of specific program level issues, a technical meeting was 
held on September 9, 2002.
    The PIR workshops explored customers' and interested parties' views 
on: (1) Operating and maintaining an aging transmission system; (2) 
building and maintaining a business framework in a changing energy 
industry; (3) building a transmission infrastructure to meet load 
growth, provide stability for existing contracts, ensure transmission 
system reliability, and integrate new resources; and (4) maintaining a 
skilled and trained workforce. TBL accepted written and oral comments 
on proposed transmission capital spending and expenses through 
September 16, 2002.
    After consideration of the customer comments, BPA closed out the 
PIR public process by issuing a decision from the Administrator on 
transmission spending levels for the proposed rate period. The Initial 
Proposal is consistent with the results of the Administrator's decision 
on transmission program spending levels.

E. Scope of the Transmission Rate Proceeding

    Many of the decisions that determine TBL's costs have been or will 
be made in public processes other than the transmission rate 
proceeding. This section provides guidance to the Hearing Officer as to 
those matters that are within the scope of the transmission rate 
proceeding and those that are outside the scope.
1. Spending Levels
    As described above, Programs In Review workshops were held 
throughout the region to clarify, discuss, and provide the public the 
opportunity to comment orally and in writing on BPA's proposed capital 
expenditures and expenses for transmission. After considering all 
comments, the Administrator closed out the public process by issuing a 
final decision on spending levels. That decision serves as the basis 
for the transmission capital and expense levels that are reflected in 
the transmission rate proposal. In addition, decisions may be made by 
Congress during this proceeding regarding spending levels for 
transmission investments and expenses. Pursuant to section 1010.3(f) of 
BPA's Procedures, the Administrator directs the Hearing Officer to 
exclude from the record any evidence or arguments that seek in any way 
to challenge the appropriateness or reasonableness of the 
Administrator's decision on transmission spending levels, including 
capital and expense budgets reviewed in the Programs in Review public 
process. If any re-examination of spending levels is necessary, that 
re-examination will occur outside of the rate proceeding. However, this 
direction to the Hearing Officer does not cover the following matters: 
sources of capital for investments, interest rate forecasts, scheduled 
amortization, forecast depreciation, forecasts of system replacements 
for repayment studies, interest expense, expense and revenue 
uncertainties, and risks included in the risk analysis.
2. Issues Decided in Power Rate Proceeding
    A number of issues that affect transmission and ancillary service 
rates have been addressed in BPA's 2002 Power Rate Case. On June 20, 
2001, the Administrator established wholesale power rates for the 
period October 1, 2001, through September 30, 2006. The Commission 
granted interim approval to the rates on September 28, 2001. In the 
Power Rate Case, the Administrator made decisions regarding the 
following: a methodology for functionalizing generation and 
transmission costs, including a methodology for functionalizing 
corporate overhead costs to the business lines; costs for generation 
inputs for ancillary services, including operating reserves, regulating 
reserve, and reactive power and voltage control from generation 
resources; the generation costs of station service and remedial action 
schemes; and the allocation of the costs of generation integration and 
generator step-up transformers to the business lines. The Administrator 
also established costs for the delivery of Federal power over third 
party transmission systems pursuant to General Transfer Agreements.
    The Initial Proposal is consistent with the results of the 
Administrator's decision on these and all other issues decided in the 
power rate proceeding and will be reflected in all final decisions made 
in the transmission rate proceeding. The Administrator directs the 
Hearing Officer to exclude from the record all evidence and argument 
that seek in any way to address or revisit final decisions that were 
made in the 2002 Power Rate Case.
3. Revised Attachment K
    The Administrator directs the Hearing Officer to exclude from the 
record all evidence and argument that seek in any way to address 
revised Attachment K to BPA's OATT. BPA is not required by law to, and 
does not, amend its OATT in a rate proceeding. BPA will be submitting 
revised Attachment K to the Commission for approval. A party may raise 
challenges to revised Attachment K to the Commission at that time, 
unless it has signed the Settlement Agreement and TBL does not revise 
its Initial Proposal.

F. National Environmental Policy Act Evaluation

    BPA is in the process of assessing the potential environmental 
effects of its initial rate proposal, as required by the National 
Environmental Policy Act (NEPA). In the Business Plan Environmental 
Impact Statement (Business Plan EIS), BPA has previously evaluated the 
environmental impacts of a range of business structure alternatives 
that included, among other things, various rate designs for BPA's 
transmission products and services. In August 1995, the BPA 
Administrator issued a Record of Decision (Business Plan ROD) that 
adopted the Market-Driven Alternative from the Business Plan Final EIS 
completed in June 1995. This alternative was selected because,

[[Page 78093]]

among other reasons, it allows BPA to: (1) Recover costs through rates; 
(2) competitively market BPA's products and services; (3) develop rates 
that meet customer needs for clarity and simplicity; and (4) continue 
to meet BPA's legal mandates.
    Because this initial rate proposal would likely assist BPA in 
accomplishing these goals, the proposal appears consistent with these 
aspects of the Market-Driven Alternative. In addition, this rate 
proposal is similar to the type of rate designs and resulting rate 
levels evaluated in the Business Plan EIS, and implementation of this 
rate proposal thus would not be expected to result in significantly 
different environmental impacts from those examined for the Market-
Driven Alternative in the Business Plan EIS. Therefore, BPA expects 
that this rate proposal will fall within the scope of the Market-Driven 
Alternative that was evaluated in the Final Business Plan EIS and 
adopted in the Business Plan ROD. In the Administrator's Record of 
Decision regarding this rate proposal, therefore, BPA may tier its 
decision under NEPA to the Business Plan ROD. Alternatively, BPA may 
issue another appropriate NEPA document.

Part III--Public Participation

A. Distinguishing Between ``Participants'' and ``Parties''

    BPA distinguishes between ``participants in'' and ``parties to'' 
the hearings. Apart from the formal hearing process, BPA will receive 
written comments, views, opinions, and information from 
``participants,'' who are defined in the BPA Procedures as persons who 
may submit comments without being subject to the duties of, or having 
the privileges of, parties. Participants' written comments will be made 
part of the official record and considered by the Administrator. 
Participants are not entitled to participate in the pre-hearing 
conference; may not cross-examine parties' witnesses, seek discovery, 
or serve or be served with documents; and are not subject to the same 
procedural requirements as parties.
    Written comments by participants will be included in the record if 
they are received by March 21, 2003. Written views, supporting 
information, questions, and arguments should be submitted to BPA's 
Manager of Corporate Communications at the address listed in the 
ADDRESSES section of this Notice.
    Persons wishing to become a party to this transmission rate 
adjustment proceeding must petition BPA in writing. Petitioners may 
designate no more than two (2) representatives upon whom service of 
documents will be made. Petitions to intervene shall state the name and 
address of the person requesting party status, and the person's 
interest in the hearing. Petitions to intervene as parties in the rate 
proceeding are due to the Hearing Officer by 4:30 p.m., Pacific Time, 
on January 8, 2003. The petition should be directed to: George Schaaf, 
Hearing Clerk--LT-7, Bonneville Power Administration, 905 NE., 11th 
Avenue, Portland, Oregon 97232.

    A copy of the petition should be served on BPA's General Counsel 
and directed to Barry Bennett--LT-7, Office of General Counsel, 905 
NE., 11th Ave., Portland, Oregon 97232.
    Petitioners must explain their interests in sufficient detail to 
permit the Hearing Officer to determine whether they have a relevant 
interest in the hearing. Pursuant to Rule 1010.1(d) of BPA's 
Procedures, BPA waives the requirement in Rule 1010.4(d) that an 
opposition to an intervention petition be filed and served 24 hours 
before the pre-hearing conference. Any opposition to an intervention 
petition may instead be made at the pre-hearing conference. Any party, 
including TBL, may oppose a petition for intervention. Persons who have 
been denied party status in any past BPA rate proceeding shall continue 
to be denied party status unless they establish a significant change of 
circumstances. The Hearing Officer will rule on all timely 
applications. Late interventions are strongly disfavored. Opposition to 
a petition to intervene filed after the pre-hearing conference must be 
received by BPA within two (2) days after service of the petition.

B. Developing the Record

    The hearing record will include, among other things, the 
transcripts of the hearing, written material entered into the record by 
TBL and the parties, written comments from participants, and other 
material accepted into the record by the Hearing Officer. The Hearing 
Officer will review the record and will certify the record to the 
Administrator for decision.
    The Administrator will develop final rates based on the record, 
information from the PIR, documents prepared pursuant to the National 
Environmental Policy Act and other environmental statutes and such 
other material or information as may have been submitted to or 
developed by the Administrator. The Administrator will serve copies of 
the Record of Decision on all parties. BPA will file its rates with the 
Commission for confirmation and approval after issuance of the Record 
of Decision.
    During the rate proceeding, TBL must continue to meet with 
customers in the ordinary course of business. To comport with the 
prohibition on ex parte communications, TBL will provide notice of 
meetings involving rate proceeding issues to provide an opportunity for 
participation by all rate proceeding parties. Parties should be aware, 
however, that such meetings may be held on very short notice.

Part IV--Major Analyses and Summary of Proposal

A. Major Analyses in Studies and Testimony

1. Revenue Requirement Study
    This Study includes the calculation of transmission revenue 
requirements for the FY 2004-2005 rate period and demonstration of cost 
recovery for the transmission function. The Revenue Requirement Study 
also includes an analysis of financial risks.
2. Revenue Forecast Testimony
    This testimony includes the FY 2004 and 2005 revenue forecast at 
current 2002 transmission and ancillary service rates and at proposed 
2004 rate levels based on forecasted loads and sales during the period.

B. Summary of Proposal

1. Transmission Rates
    All of the rates are being increased 1.5% unless otherwise noted. 
TBL is proposing five rate schedules for the use of its Integrated 
Network. Except for the changes included in the Settlement Agreement, 
no other changes from the 2002 transmission rates are being proposed. 
The proposed transmission rate schedules for use of the Integrated 
Network are as follows:
    [sbull] Formula Power Transmission (FPT-04.1 and FPT-04.3) rates--
The two FPT rates are based on the cost of specific types of 
facilities, including a distance component for the use of transmission 
lines, and are charged on a contract demand basis. Charges for the two 
required ancillary services, Reactive Supply and Voltage Control from 
Generation Sources, and Scheduling, System Control and Dispatch, are 
embedded in the FPT rates. The FPT-04.1 rate is proposed for contracts 
that allow annual rate adjustments. The FPT-04.3 rate is proposed for 
contracts that allow a rate change only once every three years. FPT-
04.3 customers are given a choice of a 1.5% increase effective October 
1, 2003, or a 3% increase effective October 1, 2004.

[[Page 78094]]

Although TBL is not offering new FPT contracts, a number of FPT 
contracts continue in place during the rate period.
    [sbull] Integration of Resources (IR-04) rate--The IR rate is a 
postage stamp, contract demand rate. Charges for the two required 
ancillary services, Reactive Supply and Voltage Control from Generation 
Sources, and Scheduling, System Control and Dispatch, are embedded in 
the IR rate. A Short Distance Discount is available when resources are 
75 miles or less from load. Although TBL is not offering new IR 
contracts, a number of IR contracts continue in place during the rate 
period.
    [sbull] Network Integration Transmission (NT-04) rate--The NT rate 
applies to customers taking NT Service under the OATT. The NT rate 
schedule includes a Load Shaping Charge applied to the customer's total 
load on the hour of the Monthly Transmission Peak Load, and a Base 
Charge applied to the customer's total load less Customer-Served Load, 
if any. Customer-Served Load is the amount of load that the customer 
agrees to serve on a firm basis without using its NT service. The NT 
rate is being increased 2.6%.
    Point-to-Point (PTP-04) rate--The PTP rate is a contract demand 
rate that applies to customers taking PTP Service on BPA's network 
facilities under the OATT. There are separate PTP rates for long-term 
firm service; short-term firm and non-firm service; and hourly firm and 
non-firm service. A Short Distance Discount is available for qualified 
long-term firm service. All short-term PTP rates are downwardly 
flexible.
    In addition to the rates for network use, other proposed 
transmission rates include:
    [sbull] Southern Intertie (IS-04) and the Montana Intertie (IM-04) 
rates are contract demand rates that apply to customers taking PTP 
Service under the OATT on the Southern Intertie and Montana Intertie. 
These rates are structured similarly to the PTP rate for service on 
network facilities.
    [sbull] The Townsend-Garrison Transmission (TGT-04) rate and the 
Eastern Intertie rate (IE-02) apply to service under the Montana 
Intertie agreement.
    [sbull] The Use-of-Facilities (UFT-04) rate establishes a formula 
for charging for the use of specific facilities based on the annual 
cost of those facilities.
    [sbull] The Advance Funding (AF-04) rate allows TBL to collect the 
capital and related costs of specific facilities through an advance-
funding mechanism.
    Because the TGT, UFT, and AF rates are formula rates, the 1.5% 
increase does not apply to them.
2. Ancillary Services Rates
    In addition to the 1.5% rate increase to the Ancillary Services and 
Control Area Service Rates, TBL proposes to revise other aspects of its 
Ancillary Services and Control Area Services rates as follows:
    [sbull] The rates for Scheduling, System Control and Dispatch 
Service and Reactive Supply and Voltage Control from Generation Sources 
Service clarify that the Billing Factor for each rate is based on all 
PTP transmission service purchased under TBL's OATT regardless of 
whether the Transmission Customer actually uses (schedules) the 
transmission. This change is only a clarification, not a substantive 
change.
    [sbull] The rates for Energy Imbalance Service, an Ancillary 
Service, and Generation Imbalance Service, a Control Area Service, 
establish three Deviation Bands for each rate, and eliminate the 100 
mills per kilowatthour penalty charge, except for intentional 
deviations. In addition, wind resources and new generation resources 
undergoing testing before commercial operation will be exempt from 
Deviation Band 3 for Generation Imbalance Service.
    [sbull] Rates for Operating Reserve--Spinning Reserve Service and 
Operating Reserve--Supplemental Reserve Service Ancillary Services 
require generators in the BPA Control Area to pay for or return energy 
provided by BPA in the event of a contingency involving that generator. 
The TBL's proposal clarifies that the TBL can direct customers or 
generators, as applicable, to either purchase operating reserve energy 
at the applicable market index price, or return the energy at specified 
times.
    [sbull] The TBL proposes to revise the definition of Spill 
Condition to clarify that a Spill Condition, for the purpose of 
determining a credit or payment for Deviations under the Energy 
Imbalance or Generation Imbalance rates, exists when spill physically 
occurs on the BPA system due to lack of load or markets.
3. Other Charges
    Other charges that may apply to a customer's transmission service 
include a Delivery Charge for the use of low-voltage delivery 
substations, a Power Factor Penalty Charge, a Reservation Fee for 
customers that delay commencement of long-term firm service, 
Incremental Rates for transmission requests that require new 
facilities, and a penalty charge for failure to comply with TBL's 
curtailment, redispatch or load shedding orders. Except for a 1.5% 
increase in the Delivery Charge, the TBL is not proposing any changes 
to these charges.
    The TBL is proposing to reduce the Unauthorized Increase Charge to 
two times the rate applicable to the customer's service, capped at two 
times the monthly charge for Long-Term Service. The rate proposal also 
includes a 1.5% increase for the General Transfer Agreement (GTA) 
Delivery Charge for low-voltage delivery service of Federal power 
provided under GTA's and other non-Federal transmission service 
agreements.

C. Issues

    The primary issue for the 2004 Transmission Rate Case is whether 
the Administrator should adopt transmission rates consistent with the 
Settlement Agreement. Adoption of the Settlement Agreement would avoid 
a potentially long, expensive, and contentious rate process. It 
provides certainty to BPA and its customers for two more years, and 
avoids cost shifts that could result from new cost allocations and rate 
designs. For TBL, the settlement establishes rates that recover its 
costs and provide a high probability of making its Treasury payments. 
For the customers, the transmission rates increase at a pace well below 
the general rate of inflation.

Part V--2004 Transmission and Ancillary Service Rate Schedules

Schedule FPT-04.1 Formula Power Transmission Rate

Section I. Availability

    This schedule supersedes Schedule FPT-02.1 for all firm 
transmission agreements which provide for application of FPT rates that 
may be adjusted not more frequently than once a year. This schedule is 
applicable only to such transmission agreements executed prior to 
October 1, 1996. It is available for firm transmission of non-Federal 
power using the Main Grid and/or Secondary System of the Federal 
Columbia River Transmission System. This schedule is for full-year and 
partial-year service and for either continuous or intermittent service 
when firm transmission service is required. For facilities at voltages 
lower than the Secondary System, a different rate schedule may be 
specified. Service under this schedule is subject to BPA-TBL's General 
Rate Schedule Provisions (GRSPs).

Section II. Rates

    The monthly charge per kilowatt shall be one-twelfth of the sum of 
the Main Grid Charge and the Secondary System

[[Page 78095]]

Charge, as applicable and as specified in the agreement.

A. Main Grid Charge

    The Main Grid Charge per kilowatt shall be the sum of one or more 
of the following annual charges as specified in the agreement:
1. Main Grid Distance: $0.0511 per mile
2. Main Grid Interconnection Terminal: $0.53
3. Main Grid Terminal: $0.59
4. Main Grid Miscellaneous Facilities: $2.91

B. Secondary System Charge

    The Secondary System Charge per kilowatt shall be the sum of one or 
more of the following annual charges as specified in the agreement:

1. Secondary System Distance: $0.5021 per mile
2. Secondary System Transformation: $5.49
3. Secondary System Intermediate Terminal: $2.12
4. Secondary System Interconnection Terminal: $1.50

Section III. Billing Factors

    Unless otherwise stated in the agreement, the Billing Factor for 
the rates specified in section II shall be the largest of:

1. The Transmission Demand;
2. The highest hourly Scheduled Demand for the month; or
3. The Ratchet Demand.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Ancillary Services that may be required to support FPT transmission 
service are available under the ACS rate schedule. FPT customers do not 
pay the ACS charges for Scheduling, System Control and Dispatch Service 
and Reactive Supply and Voltage Control from Generation Sources 
Service, because these services are included in FPT service.

B. Failure To Comply Penalty

    Customers taking service under this rate schedule are subject to 
the Failure to Comply Penalty Charge specified in section II.B of the 
GRSPs.

C. Power Factor Penalty

    Customers taking service under this rate schedule are subject to 
the Power Factor Penalty Charge specified in section II.C of the GRSPs.
Schedule FPT-04.3 Formula Power Transmission RATE

Section I. Availability

    This schedule supersedes Schedule FPT-02.3 for all firm 
transmission agreements which provide for application of FPT rates that 
may be adjusted not more frequently than once every three years, except 
as provided under Section IV.D. This schedule is applicable only to 
such transmission agreements executed prior to October 1, 1996. It is 
available for firm transmission of non-Federal power using the Main 
Grid and/or Secondary System of the Federal Columbia River Transmission 
System. This schedule is for full-year and partial-year service and for 
either continuous or intermittent service when firm transmission 
service is required. For facilities at voltages lower than the 
Secondary System, a different rate schedule may be specified. Service 
under this schedule is subject to BPA-TBL's General Rate Schedule 
Provisions (GRSPs).

Section II. Rates

    The monthly charge per kilowatt shall be one-twelfth of the sum of 
the Main Grid Charge and the Secondary System Charge, as applicable and 
as specified in the agreement. Fiscal Years run from October through 
September.

A. Fiscal Year 2004 Charges

1. Main Grid Charge
    The Main Grid Charge per kilowatt shall be the sum of one or more 
of the following annual charges as specified in the agreement:

a. Main Grid Distance: $0.0503 per mile
b. Main Grid Interconnection Terminal: $0.52
c. Main Grid Terminal: $0.58
d. Main Grid Miscellaneous Facilities: $2.87
2. Secondary System Charge
    The Secondary System Charge per kilowatt shall be the sum of one or 
more of the following annual charges as specified in the agreement:

a. Secondary System Distance: $0.4947 per mile
b. Secondary System Transformation: $5.41
c. Secondary System Intermediate Terminal: $2.09
d. Secondary System Interconnection Terminal: $1.48

B. Fiscal Year 2005 Charges

1. Main Grid Charge
    The Main Grid Charge per kilowatt shall be the sum of one or more 
of the following annual charges as specified in the agreement:

a. Main Grid Distance: $0.0518 per mile
b. Main Grid Interconnection Terminal: $0.54
c. Main Grid Terminal: $0.60
d. Main Grid Miscellaneous Facilities: $2.96
2. Secondary System Charge
    The Secondary System Charge per kilowatt shall be the sum of one or 
more of the following annual charges as specified in the agreement:

a. Secondary System Distance: $0.5095 per mile
b. Secondary System Transformation: $5.57
c. Secondary System Intermediate Terminal: $2.15
d. Secondary System Interconnection Terminal: $1.52

Section III. Billing Factors

    Unless otherwise stated in the agreement, the Billing Factor for 
the rates specified in section II shall be the largest of:

1. The Transmission Demand;
2. The highest hourly Scheduled Demand for the month; or
3. The Ratchet Demand.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Ancillary Services that may be required to support FPT transmission 
service are available under the ACS rate schedule. FPT customers do not 
pay the ACS charges for Scheduling, System Control and Dispatch Service 
and Reactive Supply and Voltage Control from Generation Sources 
Service, because these services are included in FPT service.

B. Failure To Comply Penalty

    Customers taking transmission service under FPT agreements are 
subject to the Failure to Comply Penalty specified in section II.B of 
the GRSPs.

C. Power Factor Penalty

    Customers taking transmission service under FPT agreements are 
subject to the Power Factor Penalty Charge specified in section II.C of 
the GRSPs.

D. Customer Election of Rate

    Customers may elect to pay the rates specified in the FPT-04.1 rate 
schedule for the entire FY 2004 and FY 2005 rate period instead of the 
rates specified in Section II of this FPT-04.3 rate schedule. Customers 
electing to pay the FPT-04.1 rate must notify BPA-TBL of

[[Page 78096]]

their election in writing prior to August 1, 2003.
Schedule IR-04 Integration of Resources Rate

Section I. Availability

    This schedule supersedes Schedule IR-02 and is available for 
transmission of non-Federal power for full-year firm transmission 
service and nonfirm transmission service in amounts not to exceed the 
customer's total Transmission Demand using Federal Columbia River 
Transmission System Network and Delivery facilities. This schedule is 
applicable only to Integration of Resource (IR) agreements executed 
prior to October 1, 1996. Service under this schedule is subject to 
BPA-TBL's General Rate Schedule Provisions (GRSPs).

Section II. Rates

    The monthly IR rate shall be A or B.

A. Base Rate

    $1.261 per kilowatt.

B. Short Distance Discount (SDD) Rate

    For Points of Integration (POI) specified in the IR agreement as 
being short-distance POIs, for which Network facilities are used for a 
distance of less than 75 circuit miles, the monthly rate per kilowatt 
shall be the sum of:

1. $0.233, and
2. (0.6 + (0.4 x transmission distance/75)) x $1.028

Where:

    The transmission distance is the circuit miles between a designated 
POI for a generating resource of the customer and a designated Point of 
Delivery serving load of the customer. Short-distance POIs are 
determined by BPA-TBL after considering factors in addition to 
transmission distance.

Section III. Billing Factors

    The Billing Factor for rates specified in section II shall be the 
largest of:
1. The annual Transmission Demand, or, if defined in the agreement, the 
annual Total Transmission Demand;
2. The highest hourly Scheduled Demand for the month; or
3. The Ratchet Demand.
    To the extent that the agreement provides for the IR customer to be 
billed for transmission service in excess of the Transmission Demand or 
Total Transmission Demand, as defined in the agreement, at an hourly 
nonfirm rate, such excess transmission service shall not contribute to 
the Billing Factor for the IR rates in section II; provided that the IR 
customer requests such treatment and BPA-TBL approves such request in 
accordance with the prescribed provisions in the agreement. The rate 
for transmission service in excess of the Transmission Demand will be 
pursuant to the Point-to-Point Rate (PTP-04) for Hourly Non-Firm 
Service.
    When the Scheduled Demand or Ratchet Demand is the Billing Factor, 
short-distance POIs shall be charged the Base Rate specified in section 
II.A for the amount in excess of Transmission Demand.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Ancillary Services that may be required to support IR transmission 
service are available under the ACS rate schedule. IR customers do not 
pay the ACS charges for Scheduling, System Control and Dispatch Service 
and Reactive Supply and Voltage Control from Generation Sources 
Service, because these services are included in IR service.

B. Delivery Charge

    Customers taking service over Delivery facilities are subject to 
the Delivery Charge specified in section II.A of the GRSPs.

C. Failure To Comply Penalty

    Customers taking service under this rate schedule are subject to 
the Failure to Comply Penalty Charge specified in section II.B of the 
GRSPs.

D. Power Factor Penalty

    Customers taking service under this rate schedule are subject to 
the Power Factor Penalty Charge specified in section II.C of the GRSPs.

E. Ratchet Demand Relief

    Under appropriate circumstances, BPA-TBL may waive or reduce the 
Ratchet Demand. An IR customer seeking a reduction or waiver must 
demonstrate good cause for relief, including a demonstration that:
    1. The event which resulted in the Ratchet Demand
    (a) was the result of an equipment failure or outage that could not 
reasonably have been foreseen by the customer; and
    (b) did not result in harm to BPA-TBL's transmission system or 
transmission services, or to any other Transmission Customer; or
    2. The event which resulted in the Ratchet Demand
    (a) was inadvertent;
    (b) could not have been avoided by the exercise of reasonable care;
    (c) did not result in harm to BPA-TBL's transmission system or 
transmission services, or to any other Transmission Customer; and
    (d) was not part of a recurring pattern of conduct by the IR 
customer.
    If the IR customer causes a Ratchet Demand to be established in a 
series of months during which the IR customer has not received notice 
from BPA-TBL of such Ratchet Demands by billing or otherwise, and the 
Ratchet Demand(s) established after the first Ratchet Demand were due 
to the lack of notice, then BPA-TBL may establish a Ratchet Demand for 
the IR customer based on the highest Ratchet Demand in the series. This 
highest Ratchet Demand will be charged in the month it is established 
and the following 11 months. All other Ratchet Demands based on such a 
series (including the Ratchet Demand established in the first month if 
it is not the highest Ratchet Demand) will be waived.

F. Cost Contribution

    The cost components and their contribution to the IR rate (section 
II.A) are:

1. Transmission Service--81.5%
2. Scheduling, System Control and Dispatch Service--13.2%
3. Reactive Supply and Voltage Control from Generation Sources 
Service--5.3%

G. Self-Supply of Reactive Supply and Voltage Control From Generation 
Sources Service

    A credit for self-supply of Reactive Supply and Voltage Control 
from Generation Sources Service will be available for IR customers on 
an equivalent basis to the credit for PTP Transmission Customers.

Schedule NT-04

Network Integration Rate

Section I. Availability

    This schedule supersedes Schedule NT-02. It is available to 
Transmission Customers taking Network Integration Transmission (NT) 
Service over Federal Columbia River Transmission System Network and 
Delivery facilities. Terms and conditions of service are specified in 
the Open Access Transmission Tariff. This schedule is available also 
for transmission service of a similar nature that may be ordered by the 
Federal Energy Regulatory Commission (FERC) pursuant to sections 211 
and 212 of the Federal Power Act (16 U.S.C. 824j and 824k). Service 
under this schedule is subject to BPA-TBL's General Rate Schedule 
Provisions (GRSPs).

[[Page 78097]]

Section II. Rates

    The monthly charge will be the sum of A and B.

A. Base Charge

    $1.028 per kilowatt per month.

B. Load Shaping Charge

    $0.425 per kilowatt per month.

Section III. Billing Factors

A. Base Charge

    1. If no Declared Customer-Served Load (CSL) is specified in the 
customer's NT Service Agreement, the monthly Billing Factor for the 
Base Charge specified in section II.A shall be the customer's Network 
Load on the hour of the Monthly Transmission Peak Load.
    2. If an amount of Declared CSL is specified in the customer's NT 
Service
    Agreement, the monthly Billing Factor for the Base Charge specified 
in section II.A shall be a or b:
    a. For the billing month, if the sum of the Actual CSLs occurring 
during Heavy Load Hours (HLH) is greater than or equal to 60 percent of 
the Declared CSL multiplied by the number of HLHs in the billing month, 
the monthly Billing Factor shall be the customer's Network Load on the 
hour of the Monthly Transmission Peak Load, less Declared CSL.
    b. For the billing month, if the sum of the Actual CSLs occurring 
during HLH is less than 60 percent of the Declared CSL multiplied by 
the number of HLHs in the billing month, the monthly Billing Factor 
shall be the customer's Network Load on the hour of the Monthly 
Transmission Peak Load. The Billing Factor will be reduced by any 
megawatts charged the NT Unauthorized Increase Charge under section 
IV.D. for the month.

Where:

    ``Declared Customer-Served Load (CSL)'' is the monthly amount in 
megawatts of the Transmission Customer's Network Load that the 
Transmission Customer elects to serve on a firm basis from sources 
internal to its system or over non-Federal transmission facilities or 
pursuant to contracts other than the Network Integration Service 
Agreement. The customer's Declared CSL is contractually specified for 
each month.
    ``Actual Customer-Served Load (CSL)'' is the actual hourly amount 
in megawatts of the Network Load that the customer serves on a firm 
basis from sources internal to its system or over non-Federal 
transmission facilities or pursuant to contracts other than the Network 
Integration Service Agreement.

B. Load Shaping Charge

    The monthly Billing Factor for the Load Shaping Charge specified in 
section II.B shall be the Network Load on the hour of the Monthly 
Transmission Peak Load.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Customers taking service under this rate schedule are subject to 
the ACS Scheduling, System Control and Dispatch Service Rate and the 
Reactive Supply and Voltage Control from Generation Sources Service 
Rate. Other Ancillary Services that are required to support NT Service 
are also available under the ACS rate schedule.

B. Delivery Charge

    Customers taking NT Service over Delivery facilities are subject to 
the Delivery Charge specified in section II.A of the GRSPs.

C. Failure To Comply Penalty

    Customers taking NT Service are subject to the Failure to Comply 
Penalty specified in section II.B of the GRSPs.

D. Metering Adjustment

    At those Points of Delivery that do not have meters capable of 
determining the demand on the hour of the Monthly Transmission Peak 
Load, the Billing Demand shall be calculated by substituting (1) the 
sum of the highest hourly demand that occurs during the billing month 
at all Points of Delivery multiplied by 0.79 for (2) Network Load on 
the hour of the Monthly Transmission Peak Load.

E. Power Factor Penalty

    Customers taking PTP Transmission Service are subject to the Power 
Factor Penalty Charge specified in section II.C of the GRSPs.

F. Unauthorized Increase Charge

    If the Network Customer's Actual CSL is less than its Declared CSL, 
the Unauthorized Increase Charge specified in section II.G of the GRSPs 
shall be assessed.

G. Direct Assignment Facilities

    BPA-TBL shall collect the capital and related costs of a Direct 
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not 
limited to operations, maintenance, and general plant costs, also shall 
be recovered from the Network Customer under an applicable rate 
schedule.

H. Incremental Cost Rates

    The rates specified in section II are applicable to service over 
available transmission capacity. Network Customers that integrate new 
Network Resources, new Member Systems, or new native load customers 
that would require BPA-TBL to construct Network Upgrades shall be 
subject to the higher of the rates specified in section II or 
incremental cost rates for service over such facilities. Incremental 
cost rates would be developed pursuant to section 7(i) of the Northwest 
Power Act.

I. Rate Adjustment Due to FERC Order Under FPA Sec. 212

    Customers taking service under this rate schedule are subject to 
the Rate Adjustment Due to FERC Order under FPA sec. 212 specified in 
section II.D of the GRSPs.

Schedule PTP-04

Point-to-Point Rate

Section I. Availability

    This schedule supersedes Schedules PTP-02. It is available to 
Transmission Customers taking Point-to-Point (PTP) Transmission Service 
over Federal Columbia River Transmission System (FCRTS) Network and 
Delivery facilities, and for hourly nonfirm service over such FCRTS 
facilities for customers with Integration of Resources agreements. 
Terms and conditions of PTP Transmission Service are specified in the 
Open Access Transmission Tariff. This schedule is available also for 
transmission service of a similar nature that may be ordered by the 
Federal Energy Regulatory Commission (FERC) pursuant to sections 211 
and 212 of the Federal Power Act (16 U.S.C. 824j and 824k). Service 
under this schedule is subject to BPA-TBL's General Rate Schedule 
Provisions (GRSPs).

Section II. Rates

A. Long-Term Firm PTP Transmission Service $1.028 per kilowatt per 
month

B. Short-Term Firm and Non-Firm PTP Transmission Service

    For each reservation, the rates shall not exceed:
    1. Monthly, Weekly, and Daily Firm and Non-Firm Service
    a. Days 1 through 5--$0.047 per kilowatt per day
    b. Day 6 and beyond--$0.035 per kilowatt per day
    2. Hourly Firm and Non-Firm Service--2.96 mills per kilowatthour

[[Page 78098]]

Section III. Billing Factors

A. All Firm Service and Monthly, Weekly and Daily Non-Firm Service

    The Billing Factor for each rate specified in sections II.A and 
II.B for all service except Hourly Non-Firm Service shall be the 
Reserved Capacity, which is the greater of:
    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.

B. Hourly Non-Firm Service

    The Billing Factor for the rate specified in section II.B.2 for 
Hourly Non-Firm Service shall be the scheduled kilowatthours.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Customers taking service under this rate schedule are subject to 
the ACS-04 Scheduling, System Control and Dispatch Service Rate and the 
Reactive Supply and Voltage Control from Generation Sources Service 
Rate. Other Ancillary Services that are required to support PTP 
Transmission Service on the Network are available under the ACS rate 
schedule.

B. Delivery Charge

    Customers taking PTP Transmission Service over Delivery facilities 
are subject to the Delivery Charge specified in section II.A of the 
GRSPs.

C. Failure to Comply Penalty

    Customers taking service under this rate schedule are subject to 
the Failure to Comply Penalty Charge specified in section II.B of the 
GRSPs.

D. Interruption of Non-Firm PTP Transmission Service

    If daily, weekly or monthly Non-Firm PTP Transmission Service is 
interrupted, the rates charged under section II.B.1 shall be prorated 
over the total hours in the day to give credit for the hours of such 
interruption.

E. Power Factor Penalty

    Customers taking service under this rate schedule are subject to 
the Power Factor Penalty Charge specified in section II.C of the GRSPs.

F. Reservation Fee

    Customers who postpone the commencement of Long-Term Firm Point-To-
Point Transmission Service by reserving deferred service, or by 
requesting an extension of the Service Commencement Date, will be 
subject to the Reservation Fee specified in section II.E of the GRSPs.

G. Short-Distance Discount (SDD)

    When a Point of Receipt (POR) and Point of Delivery (POD) use FCRTS 
facilities for a distance of less than 75 circuit miles and are 
designated as being short distance in the PTP Service Agreement, the 
monthly capacity reservations for the relevant POR and POD shall be 
adjusted, for the purpose of computing the monthly bill for annual 
service, by the following factor:

0.6 (0.4 x transmission distance/75)

    Such adjusted monthly POR and POD reservations shall be used to 
compute the billing factors in section III.A to calculate the monthly 
bill for Long-Term Firm PTP Transmission Service. The POD capacity 
reservation eligible for the SDD may be no larger than the POR capacity 
reservation. The distance used to calculate the SDD will be 
contractually specified and based upon path(s) identified in power flow 
studies. If a set of contiguous PODs qualifies for an SDD, the 
transmission distance used in the calculation of the SDD shall be 
between the POR and the POD farthest from the POR.
    If the customer requests secondary PORs or PODs that use SDD-
adjusted capacity reservations for any period of time during a month, 
the SDD shall not be applied that month.

H. Unauthorized Increase Charge

    Customers who exceed their capacity reservations at any Point of 
Receipt (POR) or Point of Delivery (POD) shall be subject to the 
Unauthorized Increase Charge specified in section II.G of the GRSPs.

I. Direct Assignment Facilities

    BPA-TBL shall collect the capital and related costs of a Direct 
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not 
limited to operations, maintenance, and general plant costs, also shall 
be recovered from the PTP Transmission Customer under an applicable 
rate schedule.

J. Incremental Cost Rates

    The rates specified in section II are applicable to service over 
available transmission capacity. Customers requesting new or increased 
firm service that would require BPA-TBL to construct Network Upgrades 
to alleviate a capacity constraint may be subject to incremental cost 
rates for such service if incremental cost is higher than embedded 
cost. Incremental cost rates would be developed pursuant to section 
7(i) of the Northwest Power Act.

K. Rate Adjustment Due to FERC Order Under FPA Sec.  212

    Customers taking service under this rate schedule are subject to 
the Rate Adjustment Due to FERC Order under FPA sec. 212 specified in 
section II.D of the GRSPs.
Schedule IS-04 Southern Intertie Rate

Section I. Availability

    This schedule supersedes Schedule IS-02. It is available to 
Transmission Customers taking Point-to-Point Transmission Service over 
Federal Columbia River Transmission System (FCRTS) Southern Intertie 
facilities. Terms and conditions of service are specified in the Open 
Access Transmission Tariff or, for customers who executed Southern 
Intertie agreements with BPA before October 1, 1996, will be as 
provided in the customer's agreement with BPA. This schedule is 
available also for transmission service of a similar nature that may be 
ordered by the Federal Energy Regulatory Commission (FERC) pursuant to 
sections 211 and 212 of the Federal Power Act (16 U.S.C. 824j and 
824k). Service under this schedule is subject to BPA-TBL's General Rate 
Schedule Provisions (GRSPs).

Section II. Rates

A. Long-Term Firm PTP Transmission Service

    $1.176 per kilowatt per month

B. Short-Term Firm and Non-Firm PTP Transmission Service

    For each reservation, the rates shall not exceed:
    1. Monthly, Weekly, and Daily Firm and Non-Firm Service
    a. Days 1 through 5--$0.054 per kilowatt per day
    b. Day 6 and beyond--$0.040 per kilowatt per day
    2. Hourly Firm and Non-Firm Service--3.39 mills per kilowatthour

Section III. Billing Factors

A. All Firm Service and Monthly, Weekly and Daily Non-Firm Service

    The Billing Factor for each rate specified in sections II.A and 
II.B for all service except Hourly Non-Firm Service shall be the 
Reserved Capacity, which is the greater of:
    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.
    For Southern Intertie transmission agreements executed prior to 
October 1,

[[Page 78099]]

1996, the Billing Factor shall be as specified in the agreement.

B. Hourly Non-Firm Service

    The Billing Factor for the rate specified in section II.B.2 for 
Hourly Non-Firm Service shall be the scheduled kilowatthours.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Customers taking service under this rate schedule are subject to 
the ACS-04 Scheduling, System Control and Dispatch Service Rate and the 
Reactive Supply and Voltage Control from Generation Sources Service 
Rate. Other Ancillary Services that are required to support PTP 
Transmission Service on the Southern Intertie are available under the 
ACS rate schedule.

B. Failure To Comply Penalty

    Customers taking service under this rate schedule are subject to 
the Failure to Comply Penalty Charge specified in section II.B of the 
GRSPs.

C. Interruption of Non-Firm PTP Transmission Service

    If daily, weekly, or monthly Non-Firm PTP Transmission Service is 
interrupted, the rates charged under section II.B.1. shall be prorated 
over the total hours in the day to give credit for the hours of such 
interruption.

D. Power Factor Penalty

    Customers taking service under this rate schedule are subject to 
the Power Factor Penalty Charge specified in section II.C of the GRSPs.

E. Reservation Fee

    Customers who postpone the commencement of Long-Term Firm Point-To-
Point Transmission Service by reserving deferred service, or by 
requesting an extension of their Service Commencement Date, will be 
subject to the Reservation Fee specified in section II.E of the GRSPs.

F. Unauthorized Increase Charge

    Customers who exceed their capacity reservations at any Point of 
Receipt (POR) or Point of Delivery (POD) shall be subject to the 
Unauthorized Increase Charge specified in section II.G in the GRSPs.

G. Direct Assignment Facilities

    BPA-TBL shall collect the capital and related costs of a Direct 
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not 
limited to operations, maintenance, and general plant costs, also shall 
be recovered from the Transmission Customer under an applicable rate 
schedule.

H. Incremental Cost Rates

    The rates specified in section II are applicable to service over 
available transmission capacity. Customers requesting new or increased 
firm service that would require BPA-TBL to construct new facilities or 
upgrades to alleviate a capacity constraint may be subject to 
incremental cost rates for such service if incremental cost is higher 
than embedded cost. Incremental cost rates would be developed pursuant 
to section 7(i) of the Northwest Power Act.

I. Rate Adjustment Due to FERC Order Under FPA Sec. 212

    Customers taking service under this rate schedule are subject to 
the Rate Adjustment Due to FERC Order under FPA sec. 212 specified in 
section II.D of the GRSPs.
Schedule IM-04 Montana Intertie Rate

Section I. Availability

    This schedule supersedes Schedule IM-02. It is available to 
Transmission Customers taking Point-to-Point (PTP) Transmission Service 
on BPA's share of Montana Intertie transmission capacity. Terms and 
conditions of service are specified in the Open Access Transmission 
Tariff. This schedule is available also for transmission service of a 
similar nature that may be ordered by the Federal Energy Regulatory 
Commission (FERC) pursuant to sections 211 and 212 of the Federal Power 
Act (16 U.S.C. 824j and 824k). Service under this schedule is subject 
to BPA-TBL's General Rate Schedule Provisions (GRSPs).

Section II. Rates

A. Long-Term Firm PTP Transmission Service

    $1.258 per kilowatt per month

B. Short-Term Firm and Non-Firm PTP Transmission Service

    For each reservation, the rates shall not exceed:
    1. Monthly, Weekly, and Daily Short-Term Firm and Non-Firm Service
    a. Days 1 through 5--$0.058 per kilowatt per day
    b. Day 6 and beyond--$0.042 per kilowatt per day
    2. Hourly Firm and Non-Firm Service--3.61 mills per kilowatthour

Section III. Billing Factors

A. All Firm Service and Monthly, Weekly and Daily Non-Firm Service

    The Billing Factor for each rate specified in sections II.A and 
II.B for all service except Hourly Non-Firm Service shall be the 
Reserved Capacity, which is the greater of:
    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.

B. Hourly Non-Firm Service

    The Billing Factor for the rate specified in section II.B.2 for 
Hourly Non-Firm Service shall be the scheduled kilowatthours.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Customers taking service under this rate schedule are subject to 
the ACS-04 Scheduling, System Control and Dispatch Service Rate and the 
Reactive Supply and Voltage Control from Generation Sources Service 
Rate. Other Ancillary Services that are required to support PTP 
Transmission Service on the Montana Intertie are available under the 
ACS rate schedule.

B. Failure To Comply Penalty Charge

    Customers taking service under this rate schedule are subject to 
the Failure to Comply Penalty Charge specified in section II.B of the 
GRSPs.

C. Interruption of Non-Firm PTP Transmission Service

    If daily, weekly, or monthly Non-Firm PTP Transmission Service is 
interrupted, the rates charged under section II.B.1. shall be prorated 
over the total hours in the day to give credit for the hours of such 
interruption.

D. Reservation Fee

    Customers who postpone the commencement of Long-Term Firm Point-To-
Point Transmission Service by reserving deferred service, or by 
requesting an extension of their Service Commencement Date, will be 
subject to the Reservation Fee specified in section II.E of the GRSPs.

E. Unauthorized Increase Charge

    Customers who exceed their capacity reservations at any Point of 
Receipt (POR) or Point of Delivery (POD) shall be subject to the 
Unauthorized Increase Charge specified in section II.G of the GRSPs.

[[Page 78100]]

F. Direct Assignment Facilities

    BPA-TBL shall collect the capital and related costs of a Direct 
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not 
limited to operations, maintenance, and general plant costs, also shall 
be recovered from the Transmission Customer under an applicable rate 
schedule.

G. Incremental Cost Rates

    The rates specified in section II are applicable to service over 
available transmission capacity. Customers requesting new or increased 
firm service that would require BPA-TBL to construct new facilities or 
upgrades to alleviate a capacity constraint may be subject to 
incremental cost rates for such service if incremental cost is higher 
than embedded cost. Incremental cost rates would be developed pursuant 
to section 7(i) of the Northwest Power Act.

H. Rate Adjustment Due to FERC Order Under FPA Sec. 212

    Customers taking service under this rate schedule are subject to 
the Rate Adjustment Due to FERC Order under FPA sec.212 specified in 
section II.D of the GRSPs.
Schedule UFT-04 Use-of-Facilities Transmission Rate

Section I. Availability

    This schedule supersedes Schedule UFT-02 unless otherwise provided 
in the agreement, and is available for firm transmission over specified 
Federal Columbia River Transmission System (FCRTS) facilities. Service 
under this schedule is subject to BPA-TBL's General Rate Schedule 
Provisions (GRSPs).

Section II. Rate

    The monthly charge per kilowatt of Transmission Demand/capacity 
reservations specified in the agreement shall be one-twelfth of the 
annual cost of capacity of the specified facilities divided by the sum 
of Transmission Demands/capacity reservations (in kilowatts) using such 
facilities. Such annual cost shall be determined in accordance with 
section III.

Section III. Determination of Transmission Rate

    A. From time to time, but not more often than once a year, BPA-TBL 
shall determine the following data for the facilities which have been 
constructed or otherwise acquired by BPA-TBL and which are used to 
transmit electric power:
    1. The annual cost of the specified FCRTS facilities, as determined 
from the capital cost of such facilities and annual cost ratios 
developed from the Federal Columbia River Power System financial 
statement, including interest and amortization, operation and 
maintenance, administrative and general, and general plant costs.
    The annual cost per kilowatt of facilities listed in the agreement, 
which are owned by another entity, and used by BPA-TBL for making 
deliveries to the transferee, shall be determined from the costs 
specified in the agreement between BPA-TBL and such other entity.
    2. The yearly noncoincident peak demands of all users of such 
facilities or other reasonable measurement of the facilities' peak use.
    B. The monthly charge per kilowatt of billing demand shall be one-
twelfth of the sum of the annual cost of the FCRTS facilities used 
divided by the sum of Transmission Demands/capacity reservations. The 
annual cost per kilowatt of Transmission Demand/capacity reservation 
for a facility constructed or otherwise acquired by BPA-TBL shall be 
determined in accordance with the following formula:

A
D

Where:

A = The annual cost of such facility as determined in accordance with 
A.1. above.
D = The sum of the yearly noncoincident demands on the facility as 
determined in accordance with A.2. above.
    1. For facilities used solely by one customer, BPA-TBL may charge a 
monthly amount equal to the annual cost of such sole-use facilities, 
determined in accordance with section III.A.1, divided by 12.
    2. For facilities used by more than one customer, BPA-TBL may 
charge a monthly amount equal to the annual cost of such facilities 
prorated based on relative use of the facilities, divided by 12.

Section IV. Determination of Billing Factors

    Unless otherwise stated in the agreement, the Billing Factor shall 
be the largest of:
    A. The Transmission Demand/capacity reservation in kilowatts 
specified in the agreement;
    B. The highest hourly Measured or Scheduled Demand for the month; 
or
    C. The Ratchet Demand.

Section V. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Ancillary services that are required to support UFT transmission 
service are available under the ACS rate schedule.

B. Failure To Comply Penalty

    Customers taking service under this rate schedule are subject to 
the Failure to Comply Penalty Charge specified in section II.B of the 
GRSPs.

C. Power Factor Penalty Charge

    Customers taking service under this rate schedule are subject to 
the Power Factor Penalty Charge specified in section II.C of the GRSPs.
Schedule AF-04 Advance Funding Rate

Section I. Availability

    This schedule supersedes Schedule AF-02 and is available to 
customers who execute an agreement that provides for BPA-TBL to collect 
capital and related costs through advance funding or other financial 
arrangement for specified BPA-owned Federal Columbia River Transmission 
System (FCRTS) facilities used for:
    A. Interconnection or integration of resources and loads to the 
FCRTS;
    B. Upgrades, replacements, or reinforcements of the FCRTS for 
transmission service; or
    C. Other transmission service arrangements, as determined by BPA-
TBL.
    Service under this schedule is subject to BPA-TBL's General Rate 
Schedule Provisions (GRSPs).

Section II. Rate

    The charge is the sum of the actual capital and related costs for 
specified FCRTS facilities, as provided in the agreement. Such actual 
capital and related costs include, but are not limited to, costs of 
design, materials, construction, overhead, spare parts, and all 
incidental costs necessary to provide service as identified in the 
agreement.

Section III. Payment

A. Advance Payment

    Payment to BPA-TBL shall be specified in the agreement as either:
    1. A lump sum advance payment;
    2. Advance payments pursuant to a schedule of progress payments; or
    3. Other payment arrangement, as determined by BPA-TBL.
    Such advance payment or payments shall be based on an estimate of 
the capital and related costs for the specified FCRTS facilities as 
provided in the agreement.

[[Page 78101]]

B. Adjustment to Advance Payment

    BPA-TBL shall determine the actual capital and related costs of the 
specified FCRTS facilities as soon as practicable after the date of 
commercial operation, as determined by BPA-TBL. The customer will 
either receive a refund from BPA-TBL or be billed for additional 
payment for the difference between the advance payment and the actual 
capital and related costs.
Schedule TGT-04 Townsend-Garrison Transmission Rate

Section I. Availability

    This schedule supersedes Schedule TGT-02 and is available to 
Companies that are parties to the Montana Intertie Agreement (Contract 
No. DE-MS79-81BP90210, as amended) which provides for firm transmission 
over BPA-TBL's section (Garrison to Townsend) of the Montana Intertie. 
Service under this schedule is subject to BPA-TBL's General Rate 
Schedule Provisions (GRSPs).

Section II. Rate

    The monthly charge shall be one-twelfth of the sum of the annual 
charges listed below, as applicable and as specified in the agreements 
for firm transmission. The Townsend-Garrison 500-kV lines and 
associated terminal, line compensation, and communication facilities 
are a separately identified portion of the Federal Transmission System. 
Annual revenues plus credits for government use should equal annual 
costs of the facilities, but in any given year there may be either a 
surplus or a deficit. Such surpluses or deficits for any year shall be 
accounted for in the computation of annual costs for succeeding years. 
Revenue requirements for firm transmission use will be decreased by any 
revenues received from nonfirm use and credits for all government use. 
The general methodology for determining the firm rate is to divide the 
revenue requirement by the total firm capacity requirements. Therefore, 
the higher the total capacity requirements, the lower will be the unit 
rate.
    If the government provides firm transmission service in its section 
of the Montana (Eastern) Intertie in exchange for firm transmission 
service in a customer's section of the Montana Intertie, the payment by 
the government for such transmission services provided by such customer 
will be made in the form of a credit in the calculation of the Intertie 
Charge for such customer. During an estimated 1- to 3-year period 
following the commercial operation of the third generating unit at the 
Colstrip Thermal Generating Plant at Colstrip, Montana, the capability 
of the Federal Transmission System west of Garrison Substation may be 
different from the long-term situation. It may not be possible to 
complete the extension of the 500-kV portion of the Federal 
Transmission System to Garrison by such commercial operation date. In 
such event, the 500/230 kV transformer will be an essential extension 
of the Townsend-Garrison Intertie facilities, and the annual costs of 
such transformer will be included in the calculation of the Intertie 
Charge.
    However, starting 1 month after extension to Garrison of the 500-kV 
portion of the Federal Transmission System, the annual costs of such 
transformer will no longer be included in the calculation of the 
Intertie Charge.

A. Nonfirm Transmission Charge

    This charge will be filed as a separate rate schedule, the Eastern 
Intertie (IE) rate, and revenues received thereunder will reduce the 
amount of revenue to be collected under the Intertie Charge below.

B. Intertie Charge for Firm Transmission Service
[GRAPHIC] [TIFF OMITTED] TN20DE02.007

Section III. Definitions

    A. TAC = Total Annual Costs of facilities associated with the 
Townsend-Garrison 500-kV Transmission line including terminals, and 
prior to extension of the 500-kV portion of the Federal Transmission 
System to Garrison, the 500/230 kV transformer at Garrison. Such annual 
costs are the total of: (1) Interest and amortization of associated 
Federal investment and the appropriate allocation of general plant 
costs; (2) operation and maintenance costs; (3) allowance for BPA's 
general administrative costs which are appropriately allocable to such 
facilities, and (4) payments made pursuant to section 7(m) of Public 
Law 96-501 with respect to these facilities. Total Annual Costs shall 
be adjusted to reflect reductions to unpaid total costs as a result of 
any amounts received, under agreements for firm transmission service 
over the Montana Intertie, by the government on account of any 
reduction in Transmission Demand, termination or partial termination of 
any such agreement or otherwise to compensate BPA for the unamortized 
investment, annual cost, removal, salvage, or other cost related to 
such facilities.
    B. NFR = Nonfirm Revenues, which are equal to: (1) The product of 
the Nonfirm Transmission Charge described in II(A) above, and the total 
nonfirm energy transmitted over the Townsend-Garrison line segment 
under such charge for such month; plus (2) the product of the Nonfirm 
Transmission Charge and the total nonfirm energy transmitted in either 
direction by the Government over the Townsend-Garrison line segment for 
such month.
    C. CR = Capacity Requirement of a customer on the Townsend-Garrison 
500-kV transmission facilities as specified in its firm transmission 
agreement.
    D. TCR = Total Capacity Requirement on the Townsend-Garrison 500-kV 
transmission facilities as calculated by adding (1) the sum of all 
Capacity Requirements (CR) specified in transmission agreements 
described in section I; and (2) the Government's firm capacity 
requirement. The Government's firm capacity requirement shall be no 
less than the total of the amounts, if any, specified in firm 
transmission agreements for use of the Montana Intertie.
    E. EC = Exchange Credit for each customer which is the product of: 
(1) The ratio of investment in the Townsend-Broadview 500-kV 
transmission line to the investment in the Townsend-Garrison 500-kV 
transmission line; and (2) the capacity which the Government obtains in 
the Townsend-Broadview 500-kV transmission line through exchange with 
such customer. If no exchange is in effect with a customer, the value 
of EC for such customer shall be zero.
Schedule IE-04 Eastern Intertie Rate

Section I. Availability

    This schedule supersedes IE-02 and is available to Companies that 
are parties to the Montana Intertie Agreement (Contract No. DE-MS79-
81BP90210, as amended), for nonfirm transmission service on the portion 
of Eastern Intertie capacity above BPA-TBL's firm transmission rights. 
Service

[[Page 78102]]

under this schedule is subject to BPA-TBL's General Rate Schedule 
Provisions (GRSPs).

Section II. Rate

    The rate shall not exceed 1.38 mills per kilowatthour.

Section III. Billing Factors

    The Billing Factor shall be the scheduled kilowatthours, unless 
otherwise specified in the agreement.

Section IV. Adjustments, Charges, and Other Rate Provisions

A. Ancillary Services

    Ancillary services that may be required to support IE transmission 
service are available under the ACS rate schedule.

B. Failure To Comply Penalty

    Customers taking service under this rate schedule are subject to 
the Failure to Comply Penalty specified in section II.B of the GRSPs.
Schedule ACS-04 Ancillary Services and Control Area Services Rate

Section I. Availability

    This schedule supersedes Schedule ACS-02. It is available to all 
Transmission Customers taking service under the Open Access 
Transmission Tariff and other contractual arrangements. This schedule 
is available also for transmission service of a similar nature that may 
be ordered by the Federal Energy Regulatory Commission (FERC) pursuant 
to sections 211 and 212 of the Federal Power Act (16 U.S.C. 824j and 
824k). Service under this schedule is subject to BPA-TBL's General Rate 
Schedule Provisions (GRSPs).
    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, 
and the Transmission Customer is required to purchase, the following 
Ancillary Services: (a) Scheduling, System Control and Dispatch, and 
(b) Reactive Supply and Voltage Control from Generation Sources.
    The Transmission Provider is required to offer to provide the 
following Ancillary Services only to the Transmission Customer serving 
load within the Transmission Provider's Control Area: (a) Regulation 
and Frequency Response and (b) Energy Imbalance. 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 Provider is required to offer to provide (a) Operating 
Reserve--Spinning, and (b) Operating Reserve--Supplemental to the 
Transmission Customer serving load with generation located in the 
Transmission Provider's Control Area. The Transmission Customer serving 
load with generation located in the Transmission Provider's Control 
Area is required to acquire these Ancillary Services, whether from the 
Transmission Provider, from a third party, or by self-supply. The 
Transmission Customer may not decline the Transmission Provider's offer 
of Ancillary Services unless it demonstrates that it has acquired the 
Ancillary Services from another source. The Transmission Customer must 
list in its Application which Ancillary Services it will purchase from 
the Transmission Provider.
    Ancillary Service rates available under this rate schedule are:

1. Scheduling, System Control, and Dispatch Service
2. Reactive Supply and Voltage Control from Generation Sources Service
3. Regulation and Frequency Response Service
4. Energy Imbalance Service
5. Operating Reserve--Spinning Reserve Service
6. Operating Reserve--Supplemental Reserve Service

    Control Area Services are available to meet the Reliability 
Obligations of a party with resources or loads in the BPA Control Area. 
A party that is not satisfying all of its Reliability Obligations 
through the purchase or self-provision of Ancillary Services must 
purchase Control Area Services to meet its Reliability Obligations. 
Control Area Services are also available to parties with resources or 
loads in the BPA Control Area that have Reliability Obligations, but do 
not have a transmission agreement with BPA. Reliability Obligations for 
resources or loads in the BPA Control Area shall be determined 
consistent with the applicable North American Electric Reliability 
Council (NERC), Western Electricity Coordinating Council (WECC), and 
Northwest Power Pool (NWPP) criteria.
    Control Area Service rates available under this rate schedule are:

1. Regulation and Frequency Response Service
2. Generation Imbalance Service
3. Operating Reserve--Spinning Reserve Service
4. Operating Reserve--Supplemental Reserve Service

Section II. Ancillary Service Rates

A. Scheduling, System Control and Dispatch Service

    The rates below apply to Transmission Customers taking Scheduling, 
System Control and Dispatch Service from BPA-TBL. These rates apply to 
both firm and non-firm transmission service. Transmission arrangements 
on the Network, on the Southern Intertie, and on the Montana Intertie 
are each charged separately for Scheduling, System Control and Dispatch 
Service.
1. Rates
    a. Long-Term Firm PTP Transmission Service and NT Service.--The 
rate shall not exceed $0.166 per kilowatt per month.
    b. Short-Term Firm and Non-Firm PTP Transmission Service.--For each 
reservation, the rates shall not exceed:
    (1) Monthly, Weekly, and Daily Firm and Non-Firm Service
    (a) Days 1 through 5--$0.008 per kilowatt per day
    (b) Day 6 and beyond--$0.005 per kilowatt per day
    (2) Hourly Firm and Non-Firm Service--
    The rate shall not exceed 0.48 mills per kilowatthour.
2. Billing Factors
    a. Point-To-Point Transmission Service.--For Transmission Customers 
taking Point-to-Point Transmission Service (PTP, IS, and IM rates), the 
Billing Factor for each rate specified in section 1.a, 1.b(1), and for 
Hourly Firm PTP Transmission Service specified in 1.b(2) shall be the 
Reserved Capacity, which is the greater of:
    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.
    The Reserved Capacity for Firm PTP Transmission Service shall not 
be adjusted for any Short-Distance Discounts or for any modifications 
on a non-firm basis in determining the Scheduling, System Control and 
Dispatch Service Billing Factor.
    The Billing Factor for the rate specified in section 1.b(2) for 
Hourly Non-Firm Service shall be the scheduled kilowatthours.
    These Billing Factors apply to all PTP transmission service under 
the Open Access Transmission Tariff regardless of whether the 
Transmission Customer actually uses (schedules) the transmission.
    b. Network Integration Transmission Service.--For Transmission 
Customers taking Network Integration

[[Page 78103]]

Transmission Service, the Billing Factor for the rate specified in 
section 1.a. shall equal the NT Base Charge Billing Factor determined 
pursuant to section III.A of the Network Integration Rate Schedule (NT-
04).

Section II. Ancillary Service Rates

B. Reactive Supply and Voltage Control from Generation Sources Service

    The rates below apply to Transmission Customers taking Reactive 
Supply and Voltage Control from Generation Sources Service from BPA-
TBL. These rates apply to both firm and non-firm transmission service. 
Transmission arrangements on the Network, on the Southern Intertie, and 
on the Montana Intertie are each charged separately for Reactive Supply 
and Voltage Control from Generation Sources Service.
1. Rates
    a. Long-Term Firm PTP Transmission Service and NT Service.--The 
rate shall not exceed $0.067 per kilowatt per month.
    b. Short-Term Firm and Non-Firm PTP Transmission Service.--For each 
reservation, the rates shall not exceed:
    (1) Monthly, Weekly, and Daily Firm and Nonfirm Service
    (a) Days 1 through 5--$0.003 per kilowatt per day
    (b) Day 6 and beyond--$0.002 per kilowatt per day
    (2) Hourly Firm and Non-Firm Service.--The rate shall not exceed 
0.19 mills per kilowatthour.
2. Billing Factors
    a. Point-To-Point Transmission Service.--For Transmission Customers 
taking Point-to-Point Transmission Service (PTP, IS, and IM rates), the 
Billing Factor for each rate specified in section 1.a, 1.b(1) and for 
Hourly Firm PTP Transmission Service specified in 1.b(2) shall be the 
Reserved Capacity, which is the greater of:
    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.
    The Reserved Capacity for Firm PTP Transmission Service shall not 
be adjusted for any Short-Distance Discount or for any modifications on 
a non-firm basis in determining the Reactive Supply and Voltage Control 
from Generation Sources Service Billing Factor.
    The Billing Factor for the rate specified in section 1.b(2) for 
Hourly Non-Firm Service shall be the scheduled kilowatthours.
    These Billing Factors apply to all PTP transmission service under 
the Open Access Transmission Tariff regardless of whether the 
Transmission Customer actually uses (schedules) the transmission.
    b. Network Integration Transmission Service.--For Transmission 
Customers taking Network Integration Transmission Service, the Billing 
Factor for the rate specified in section 1.a. shall equal the NT Base 
Charge Billing Factor determined pursuant to section III.A of the 
Network Integration Rate Schedule (NT-04).
    c. Adjustment for Self-Supply.--The Billing Factors in sections 
2.a. and 2.b. above may be reduced as specified in the Transmission 
Customer's Service Agreement to the extent the Transmission Customer 
demonstrates to BPA-TBL's satisfaction that it can self-provide 
Reactive Supply and Voltage Control from Generation Sources Service.

Section II. Ancillary Service Rates

C. Regulation and Frequency Response Service

    The rate below for Regulation and Frequency Response Service 
applies to Transmission Customers serving loads in the BPA Control 
Area. Regulation and Frequency Response Service provides the generation 
capability to follow the moment-to-moment variations of loads in the 
BPA Control Area and maintain the power system frequency at 60 Hz in 
conformance with NERC and WECC reliability standards.
1. Rate
    The rate shall not exceed 0.30 mills per kilowatthour.
2. Billing Factor
    The Billing Factor is the customer's total load in the BPA Control 
Area, in kilowatthours.

Section II. Ancillary Service Rates

D. Energy Imbalance Service

    The rates below apply to Transmission Customers taking Energy 
Imbalance Service from BPA-TBL. Energy Imbalance Service is taken when 
there is a difference between scheduled and actual energy delivered to 
a load in the BPA Control Area during a schedule hour.
1. Rates
    a. Imbalances Within Deviation Band 1.--Deviation Band 1 applies to 
deviations that are less than or equal to: (i) +/-1.5% of the scheduled 
amount of energy, or (ii) +/-2 MW, whichever is larger in absolute 
value. BPA-TBL will maintain deviation accounts showing the net Energy 
Imbalance (the sum of positive and negative deviations from schedule 
for each hour) for Heavy Load Hour (HLH) and Light Load Hour (LLH) 
periods. Return energy may be scheduled at any time during the month to 
bring the deviation account balances to zero at the end of each month. 
BPA-TBL will approve the hourly schedules of return energy. The 
customer shall make the arrangements and submit the schedule for the 
balancing transaction.
    The following rates will be applied when a deviation balance 
remains at the end of the month:
    (i) When the monthly net energy (determined for HLH and LLH 
periods) taken by the Transmission Customer is greater than the energy 
scheduled, the charge is BPA's incremental cost based on the applicable 
average HLH and average LLH incremental cost for the month.
    (ii) When the monthly net energy (determined for HLH and LLH 
periods) taken by the Transmission Customer is less than the energy 
scheduled, the credit is BPA's incremental cost based on the applicable 
average HLH and LLH incremental cost for the month.
    b. Imbalances Within Deviation Band 2.--Deviation Band 2 applies to 
the portion of the deviation (i) greater than +/-1.5% of the scheduled 
amount of energy or +/-2 MW, whichever is larger in absolute value, 
(ii) up to and including +/-7.5% of the scheduled amount of energy or 
+/-10 MW, whichever is larger in absolute value.
    (i) When energy taken by the Transmission Customer in a schedule 
hour is greater than the energy scheduled, the charge is 110% of BPA's 
incremental cost.
    (ii) When energy taken by the Transmission Customer in a schedule 
hour is less than the scheduled amount, the credit is 90% of BPA's 
incremental cost.
    c. Imbalances Within Deviation Band 3.--Deviation Band 3 applies to 
the portion of the deviation (i) greater than +/-7.5% of the scheduled 
amount of energy, or (ii) greater than +/-10 MW of the scheduled amount 
of energy, whichever is larger in absolute value.
    (I) When energy taken by the Transmission Customer in a schedule 
hour is greater than the energy scheduled, the charge is 125% of BPA's 
highest incremental cost that occurs during the that day. The highest 
daily incremental cost shall be determined separately for HLH and LLH.
    (ii) When energy taken by the Transmission Customer in a schedule 
hour is less than the scheduled amount, the credit is 75% of BPA's 
lowest incremental cost that occurs during that day. The lowest daily 
incremental cost

[[Page 78104]]

shall be determined separately for HLH and LLH.
2. Other Rate Provisions
    a. BPA Incremental Cost.--BPA's incremental cost will be based on 
an hourly energy index in the PNW. If no adequate hourly index exists, 
an alternative index will be used. The index to be used will be posted 
on the OASIS at least 30 days prior to use for determining the BPA 
incremental cost and will not be changed more often than once per year 
unless BPA-TBL determines that the existing index is no longer a 
reliable price index.
    b. Spill Conditions.--For any day that the Federal System is in a 
Spill Condition, no credit is given for negative deviations (actual 
energy delivered is less than scheduled) for any hour of that day.
    c. Intentional Deviation.--For any hour(s) that an imbalance is 
determined by BPA-TBL to be an Intentional Deviation:
    (1) No credit is given when energy taken is less than the scheduled 
energy.
    (2) When energy taken exceeds the scheduled energy, the charge is 
the greater of: (i) 125% of BPA's highest incremental cost that occurs 
during that day, or (ii) 100 mills per kilowatthour.

Section II. Ancillary Service Rates

E. Operating Reserve--Spinning Reserve Service

    The rates below apply to Transmission Customers taking Operating 
Reserve--Spinning Reserve Service from BPA-TBL and to generators in the 
BPA Control Area for settlement of energy deliveries. Spinning Reserve 
Service is needed to serve load immediately in the event of a system 
contingency. For a Transmission Customer's load (located inside or 
outside of the BPA Control Area) served by generation located in the 
BPA Control Area, the Transmission Customer's Spinning Reserve 
Requirement shall be determined consistent with applicable NERC, WECC 
and NWPP standards.
1. Rates
    a. The rate shall not exceed 8.39 mills per kilowatthour of the 
Transmission Customer's Spinning Reserve Requirement.
    b. For energy delivered, the generator shall, as directed by BPA-
TBL, either:
    (i) Purchase the energy at the hourly market index price applicable 
at the time of occurrence, or
    (ii) Return the energy at the times specified by BPA-TBL.
2. Billing Factors
    a. The Billing Factor for Spinning Reserve Service is determined in 
accordance with applicable WECC and NWPP standards. Application of 
current standards establish a minimum Spinning Reserve Requirement 
equal to the sum of:
    (i) Two and a half percent (2.5%) of the hydroelectric generation 
dedicated to the Transmission Customer's firm load responsibility; and
    (ii) Three and a half percent (3.5%) of non-hydroelectric 
generation dedicated to the Transmission Customer's firm load 
responsibility.
    b. The Billing Factor for energy delivered when Spinning Reserve 
Service is called upon is the energy delivered, in kilowatthours.

Section II. Ancillary Service Rates

F. Operating Reserve--Supplemental Reserve Service

    The rates below apply to Transmission Customers taking Operating 
Reserve--Supplemental Reserve Service from BPA-TBL and to generators in 
the BPA Control Area for settlement of energy deliveries. Supplemental 
Reserve Service is available within a short period of time to serve 
load in the event of a system contingency. For a Transmission 
Customer's load (located inside or outside the BPA Control Area) served 
by generation located in the BPA Control Area, the Transmission 
Customer's Supplemental Reserve Requirement shall be determined 
consistent with applicable NERC, WECC and NWPP standards.
1. Rates
    a. The rate shall not exceed 8.39 mills per kilowatthour of 
Supplemental Reserve Requirement.
    b. For energy delivered, the Transmission Customer (for 
interruptible imports only) or the generator shall, as directed by BPA-
TBL, either:
    (i) Purchase the energy at the hourly market index price applicable 
at the time of occurrence, or
    (ii) Return the energy at the times specified by BPA-TBL.
    The Transmission Customer shall be responsible for the settlement 
of delivered energy associated with interruptible imports (see section 
2.a(iii)). The generator shall be responsible for the settlement of 
delivered energy associated with generation in the BPA Control Area.
2. Billing Factors
    a. The Billing Factor for Supplemental Reserve Service is 
determined in accordance with applicable WECC and NWPP standards. 
Application of current standards establish a minimum Supplemental 
Reserve Requirement equal to the sum of:
    (i) Two and one half percent (2.5%) of the hydroelectric generation 
dedicated to the Transmission Customer's firm load responsibility, plus
    (ii) Three and one half percent (3.5%) of non-hydroelectric 
generation dedicated to the Transmission Customer's firm load 
responsibility, plus
    (iii) Any power scheduled into the BPA Control Area that can be 
interrupted on ten (10) minutes' notice.
    b. The Billing Factor for energy delivered when Supplemental 
Reserve Service is called upon is the energy delivered, in 
kilowatthours.

Section III. Control Area Service Rates

A. Regulation and Frequency Response Service

    The rate below applies to all loads in the BPA Control Area that 
are receiving Regulation and Frequency Response Service from the BPA 
Control Area, and such Regulation and Frequency Response Service is not 
provided for under a BPA-TBL transmission agreement. Regulation and 
Frequency Response Service provides the generation capability to follow 
the moment-to-moment variations of loads in the BPA Control Area and 
maintain the power system frequency at 60 Hz in conformance with NERC 
and WECC reliability standards.
1. Rate
    The rate shall not exceed 0.30 mills per kilowatthour.
2. Billing Factor
    The Billing Factor is the customer's total load in the BPA Control 
Area, in kilowatthours.

Section III. Control Area Service Rates

B. Generation Imbalance Service

    The rates below apply to generation resources in the BPA Control 
Area if Generation Imbalance Service is provided for in an 
interconnection agreement or other arrangement. Generation Imbalance 
Service is taken when there is a difference between scheduled and 
actual energy delivered from generation resources in the BPA Control 
Area during a schedule hour.
1. Rates
    a. Imbalances Within Deviation Band 1.--Deviation Band 1 applies to 
deviations that are less than or equal to:

[[Page 78105]]

(I) +/- 1.5% of the scheduled amount of energy, or (ii) +/- 2 MW, 
whichever is larger in absolute value. BPA-TBL will maintain deviation 
accounts showing the net Generation Imbalance (the sum of positive and 
negative deviations from schedule for each hour) for Heavy Load Hour 
(HLH) and Light Load Hour (LLH) periods. Return energy may be scheduled 
at any time during the month to bring the deviation account balances to 
zero at the end of each month. BPA-TBL will approve the hourly 
schedules of return energy. The customer shall make the arrangements 
and submit the schedule for the balancing transaction.
    The following rates will be applied when a deviation balance 
remains at the end of the month:
    (i) When the monthly net energy (determined for HLH and LLH 
periods) delivered from a generation resource is less than the energy 
scheduled, the charge is BPA's incremental cost based on the applicable 
average HLH and average LLH incremental cost for the month.
    (ii) When the monthly net energy (determined for HLH and LLH 
periods) delivered from a generation resource is greater than the 
energy scheduled, the credit is BPA's incremental cost based on the 
applicable average HLH and LLH incremental cost for the month.
    b. Imbalances Within Deviation Band 2.--Deviation Band 2 applies to 
the portion of the deviation (I) greater than +/- 1.5% of the scheduled 
amount of energy or +/-2MW, whichever is larger in absolute value, (ii) 
up to and including +/-7.5% of the scheduled amount of energy or +/-10 
MW, whichever is larger in absolute value.
    (i) When energy delivered in a schedule hour from the generation 
resource is less than the energy scheduled, the charge is 110% of BPA's 
incremental cost.
    (ii) When energy delivered from the generation resource is greater 
than the scheduled amount, the credit is 90% of BPA's incremental cost.
    c. Imbalances Within Deviation Band 3.--Deviation Band 3 applies to 
the portion of the deviation (i) greater than +/-7.5% of the scheduled 
amount of energy, or (ii) greater than +/-10 MW of the scheduled amount 
of energy, whichever is larger in absolute value.
    (i) When energy delivered in a schedule hour from the generation 
resource is less than the energy scheduled, the charge is 125% of BPA's 
highest incremental cost that occurs during that day. The highest daily 
incremental cost shall be determined separately for HLH and LLH.
    (ii) When energy delivered from the generation resource is greater 
than the scheduled amount, the credit is 75% of BPA's lowest 
incremental cost that occurs during that day. The lowest daily 
incremental cost shall be determined separately for HLH and LLH.
2. Other Rate Provisions
    a. BPA Incremental Cost.--BPA's incremental cost will be based on 
an hourly energy index in the PNW. If no adequate hourly index exists, 
an alternative index will be used. The index to be used will be posted 
on the OASIS at least 30 days prior to use for determining the BPA 
incremental cost and will not be changed more often than once per year 
unless BPA-TBL determines that the existing index is no longer a 
reliable price index.
    b. Spill Conditions.--For any day that the Federal System is in a 
Spill Condition, no credit is given for negative deviations (actual 
generation greater than schedules) for any hour of that day.
    c. Intentional Deviation.--No credit is given for negative 
deviations (actual generation greater than schedules) for any hour(s) 
that the imbalance is an Intentional Deviation (as determined by BPA-
TBL).
    For positive deviations (actual generation less than schedules) 
which are determined by BPA-TBL to be Intentional Deviations, the 
charge is the greater of: (I) 125% of BPA's highest incremental cost 
that occurs during that day, or (ii) 100 mills per kilowatthour.
    d. Exemptions from Deviation Band 3.--The following resources are 
not subject to Deviation Band 3:
    (i) wind resources; and
    (ii) new generation resources undergoing testing before commercial 
operation for up to 90 days.
    All such deviations greater than +/-1.5% or +/-2 MW will be charged 
consistent with section 1.b., Imbalances Within Deviation Band 2.

Section III. Control Area Service Rates

C. Operating Reserve--Spinning Reserve Service

    Operating Reserve--Spinning Reserve Service must be purchased by a 
party with generation in the BPA Control Area that is receiving this 
service from BPA-TBL, and such Spinning Reserve Service is not provided 
for under a BPA-TBL transmission agreement. Service is being received 
if there are no other qualifying resources providing this required 
reserve service in conformance with NERC, WECC and NWPP standards.
1. Rates
    a. The rate shall not exceed 8.39 mills per kilowatthour of 
Spinning Reserve Requirement
    b. For energy delivered, the customer shall, as directed by BPA-
TBL, either:
    (i) Purchase the energy at the hourly market index price applicable 
at the time of occurrence, or
    (ii) Return the energy at the times specified by BPA-TBL.
2. Billing Factors
    a. The Billing Factor for Spinning Reserve Service is determined in 
accordance with applicable WECC and NWPP standards. Application of 
current standards establish a minimum Spinning Reserve Requirement 
equal to the sum of:
    (i) Two and one half percent (2.5%) of the hydroelectric generation 
dedicated to the customer's firm load responsibility, plus
    (ii) Three and one half percent (3.5%) of non-hydroelectric 
generation dedicated to the customer's firm load responsibility.
    b. The Billing Factor for energy delivered when Spinning Reserve 
Service is called upon is the energy delivered, in kilowatthours.

Section III. Control Area Service Rates

D. Operating Reserve--Supplemental Reserve Service

    Operating Reserve--Supplemental Reserve Service must be purchased 
by a party with generation in the BPA Control Area that is receiving 
this service from BPA-TBL, and such Supplemental Reserve Service is not 
provided for under a BPA-TBL transmission agreement. Service is being 
received if there are no other qualifying resources providing this 
required reserve service in conformance with NERC, WECC and NWPP 
standards.
1. Rates
    a. The rate shall not exceed 8.39 mills per kilowatthour of 
Supplemental Reserve Requirement.
    b. For energy delivered, the customer shall, as directed by BPA-TBL 
either:
    (i) Purchase the energy at the hourly market index price applicable 
at the time of occurrence, or
    (ii) Return the energy at the times specified by BPA-TBL.
2. Billing Factors
    a. The Billing Factor for Spinning Reserve Service is determined in 
accordance with applicable WECC and NWPP standards. Application of 
current standards establish a minimum Spinning Reserve Requirement 
equal to the sum of:
    (i) Two and one half percent (2.5%) of the hydroelectric generation 
dedicated to the customer's firm load Responsibility, plus

[[Page 78106]]

    (ii) Three and one half percent (3.5%) of non-hydroelectric 
generation dedicated to the customer's firm load responsibility, plus
    (iii) Any power scheduled into the BPA Control Area that can be 
interrupted on ten (10) minutes' notice.
    b. The Billing Factor for energy delivered when Supplemental 
Reserve Service is called upon is the energy delivered, in 
kilowatthours.

Section IV. Adjustments, Charges, and Other Rate Provisions A. Rate 
Adjustment Due to FERC Order Under FPA Sec.  212

    Customers taking service under this rate schedule are subject to 
the Rate Adjustment Due to FERC Order under FPA Sec.  212 specified in 
section II.D of the GRSPs.

General Rate Schedule Provisions for Transmission and Ancillary Service 
Rates

Section I. Generally Applicable Provisions

A. Approval of Rates

    These 2004 rate schedules and General Rate Schedule Provisions 
(GRSPs) for Transmission and Ancillary Service Rates shall become 
effective upon interim approval or upon final confirmation and approval 
by the Federal Energy Regulatory Commission (FERC). Bonneville Power 
Administration (BPA) has requested that FERC make these rates and GRSPs 
effective on October 1, 2003. All rate schedules shall remain in effect 
until they are replaced or expire on their own terms.

B. General Provisions

    These 2004 rate schedules and the GRSPs associated with these 
schedules supersede BPA's 2002 rate schedules (which became effective 
October 1, 2002) to the extent stated in the Availability section of 
each rate schedule. These schedules and GRSPs shall be applicable to 
all BPA-TBL contracts, including contracts executed both prior to, and 
subsequent to, enactment of the Pacific Northwest Electric Power 
Planning and Conservation Act (Northwest Power Act). All sales under 
these rate schedules are subject to the following acts as amended: the 
Bonneville Project Act (Pub. L. 75-329), 16 U.S.C. 832, the Pacific 
Northwest Consumer Power Preference Act (Pub. L. 88-552), 16 U.S.C. 
837, the Federal Columbia River Transmission System Act (Pub. L. 93-
454), 16 U.S.C. 838, the Northwest Power Act (Pub. L. 96-501), 16 
U.S.C. 839, and the Energy Policy Act of 1992 (Pub. L. 102-486), 16 
U.S.C. 824(i)--(l).
    These 2004 rate schedules do not supersede any previously 
established rate schedule that is required, by agreement, to remain in 
effect.
    If a provision in an executed agreement is in conflict with a 
provision contained herein, the former shall prevail.

C. Notices

    For the purpose of determining elapsed time from receipt of a 
notice applicable to rate schedule and GRSP administration, a notice 
shall be deemed to have been received at 0000 hours on the first 
calendar day following actual receipt of the notice.

D. Billing and Payment

1. Billing Procedure
    Within a reasonable time after the first day of each month, the 
BPA-TBL shall submit an invoice to the Transmission Customer for the 
charges for all services furnished under the Tariff and other 
agreements 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 BPA-TBL, or 
by wire transfer to a bank named by the BPA-TBL.
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 BPA-TBL.
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 BPA-
TBL on or before the due date as described above, and such failure of 
payment is not corrected within thirty (30) calendar days after the 
BPA-TBL notifies the Transmission Customer to cure such failure, a 
default by the Transmission Customer shall be deemed to exist. Upon the 
occurrence of a default, the BPA-TBL may notify the Transmission 
Customer that it plans to terminate services in sixty (60) days. The 
Transmission Customer may use the dispute resolution procedures to 
contest such termination. In the event of a billing dispute between the 
BPA-TBL and the Transmission Customer, the BPA-TBL 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 BPA-TBL may provide notice to the Transmission 
Customer of its intention to suspend service in sixty (60) days, in 
accordance with Commission policy.

Section II. Adjustments, Charges, and Special Rate Provisions

A. Delivery Charge

    Transmission Customers shall pay a Delivery Charge for service over 
DSI Delivery facilities and Utility Delivery facilities.
1. Rates
    a. DSI Delivery.--Use-of-Facilities (UFT-04) Rate, section III.B.1 
or III.B.2
    b. Utility Delivery.--$0.946 per kilowatt per month
2. Billing Factor
    a. Utility Delivery.--The monthly Billing Factor for the Utility 
Delivery rate in section 1.b. shall be the total load on the hour of 
the Monthly Transmission Peak Load at the Points of Delivery specified 
as Utility Delivery facilities.
    The monthly Utility Delivery Billing Factor shall be adjusted for 
customers who pay for Utility Delivery facilities under the Use-of-
Facilities (UFT) rate schedule. The kilowatt credit shall equal the 
transmission service over the Delivery facilities used to calculate the 
UFT charge. This adjustment shall not reduce the Utility Delivery 
Charge billing factor below zero.
    b. Metering Adjustment.--At those Points of Delivery that do not 
have meters capable of determining the demand on the hour of the 
Monthly Transmission Peak Load, the Billing Factor under section 2.a. 
shall equal the highest hourly demand that occurs during the billing 
month at the Point of Delivery multiplied by 0.79.

B. Failure To Comply Penalty Charge

    If a party fails to comply with the BPA-TBL's curtailment, 
redispatch, or load shedding orders, the party will be assessed the 
Failure to Comply Penalty Charge.
    Parties who are unable to comply with a curtailment, load shedding, 
or redispatch order due to a force majeure

[[Page 78107]]

on their system will not be subject to this penalty provided that they 
immediately notify the BPA-TBL of the situation upon occurrence of the 
force majeure.
1. Rate
    The rate shall be the highest of:
    a. 100 mills per kilowatthour;
    b. any costs incurred by the BPA-TBL in order to manage the 
reliability of the FCRTS due to the failure to comply;
    c. an hourly market price index plus 10%.
    The hourly market price index will be the larger of the California 
ISO Ex-Post Supplemental Energy Price or the Dow Jones Mid-Columbia 
Firm Index Price for the hour(s) when the failure to comply occurred.
2. Billing Factors
    The Billing Factor shall be the kilowatthours that were not 
curtailed or redispatched in any of the following situations:
    a. Failure to shed load when required as specified by the Load 
Shedding provisions of the Open Access Transmission Tariff or any other 
applicable agreement between the parties. This includes failure to 
respond within the time period specified by the North American Electric 
Reliability Council (NERC), Western Electricity Coordinating Council 
(WECC), or Northwest Power Pool (NWPP) criteria.
    b. Failure of a generator in the BPA Control Area or which directly 
interconnects to the FCRTS to change generation levels when directed to 
do so by the BPA-TBL. This includes failure to respond within the time 
period specified by NERC, WECC, or NWPP criteria.
    c. Failure to curtail a schedule in the time period specified by 
NERC, WECC, or NWPP criteria when directed to do so by the BPA-TBL.

C. Power Factor Penalty Charge

1. Description of the Power Factor Penalty Charge
    Any party that is interconnected with the Federal Columbia River 
Transmission System (FCRTS) shall be charged for its reactive power 
requirements as described in this section, unless otherwise specified 
in an agreement existing prior to October 1, 1995.
    Each point of interconnection or point of delivery shall be 
monitored and billed independently for determining the party's total 
reactive power requirements and all associated billing factors, 
including the Reactive Deadband. If a party is taking transmission 
service under multiple rate schedules, the party will pay for its 
reactive power requirements as if it is taking delivery under only one 
rate schedule.
2. Conditions for Application of the Power Factor Penalty Charge
    a. Measured Data.--The Power Factor Penalty Charge will apply to 
only the party's reactive power requirements for which measured data 
exist.
    b. Party's Generating Resource Connected to the FCRTS.--
Irrespective of the direction of real power flow, the Power Factor 
Penalty Charge shall apply to points of interconnection where a party's 
generating resource is directly connected to the FCRTS, unless the 
party's generating resource is either:
    i. a synchronous generator equipped with a voltage regulator, or
    ii. equipped with reactive power control devices that comply with 
BPA-TBL's applicable interconnection standards.
    Such resource must actively support the voltage schedule at the 
point of integration at all times when the resource is in service, as 
determined by BPA Transmission Business Line, for this exemption to 
apply. Generating resources that do not satisfy the above criteria 
shall not be exempt from the Power Factor Penalty Charge.
    c. Bi-directional Real Power Flow.--For points other than those 
specified in section 2(b), the Power Factor Penalty Charge will not be 
applied, and no new Ratchet Demand for reactive power will be 
established, at a specific point if the metered real power (on an 
hourly integrated basis) flows from the party's system to the FCRTS at 
that point for as little as one hour during the billing period. 
However, the party will still pay any previously incurred demand 
ratchet charges. The direction of the real power flow will be 
determined based on metered quantities, not on scheduled quantities.
    d. Service by Transfer.--Points of delivery that are served by 
transfer over another utility's transmission system will not be subject 
to the Power Factor Penalty Charge unless there are significant BPA-TBL 
Network facilities between the party's points of delivery and the 
transferor's system.
    e. Specific Points Exempt from the Power Factor Penalty Charge.--
The Power Factor Penalty Charge will not apply to the following points:

Nevada-Oregon Border (NOB)
Big Eddy 500 kV
Big Eddy 230 kV
John Day 500 kV
Malin 500 kV
Captain Jack 500 kV
Garrison 500 kV
Townsend 500 kV

    f. Special Circumstances.--The party may submit requests to BPA 
Transmission Business Line for consideration of unique circumstances. 
BPA Transmission Business Line will evaluate the request and may make 
arrangements with the party to address the special circumstances.
3. Rates
    BPA-TBL will bill the party for reactive power at each point each 
month as follows:

Reactive Demand

    $0.28 per kVAr of lagging reactive demand in excess of the Reactive 
Deadband during HLH in all months of the year.
    $0.24 per kVAr of leading reactive demand in excess of the Reactive 
Deadband during LLH in all months of the year.
    No charge for leading reactive demand during HLH.
    No charge for lagging reactive demand during LLH.
4. Billing Factors
    a. Reactive Deadband.--The Reactive Deadband (measured in kVAr) is 
used to determine the Reactive Billing Demand and Ratchet Demand for 
the Power Factor Penalty Charge.
    The Reactive Deadband for each billing period is the maximum hourly 
integrated metered real power demand (measured in kW) at each point 
during the billing period multiplied by 25 percent.
    The Reactive Deadband for either HLH or LLH:
    (I) is computed once per billing period (the same quantity is used 
for both HLH and LLH),
    (ii) does not vary during the billing period, and
    (iii) is based on the maximum hourly integrated metered real power 
demand during that billing period.
    b. Reactive Billing Demand.--The party's Reactive Billing Demand 
shall be calculated independently for lagging reactive power and 
leading reactive power at each point for which a Power Factor Penalty 
Charge is assessed.
    All reactive demands shall be established in the particular HLH or 
LLH at each point during which the party's maximum applicable reactive 
demand is placed on BPA-TBL, regardless of the time of the real power 
peak at each point.
    All reactive demand at each point shall be established on a non-
coincidental basis, regardless of whether the party is billed for real 
power or

[[Page 78108]]

transmission at such point on a coincidental or non-coincidental basis, 
unless otherwise specified in the agreement between BPA-TBL and the 
party, or coincidental billing is, in BPA-TBL's sole determination, 
more practical for BPA-TBL.
    There will be separate reactive demands for lagging (HLH) and 
leading (LLH) demands. The party's Reactive Billing Demand for each 
point for the billing month shall be the larger of:
    (i) The largest measured reactive demand in excess of the Reactive 
Deadband during the billing period, or
    (ii) The Ratchet Demand for reactive power.
    The Ratchet Demand for reactive power is equal to 100 percent of 
the largest measured reactive demand in excess of the Reactive Deadband 
during the preceding 11-month period. Each point shall have a separate 
Ratchet Demand for lagging (HLH) and leading (LLH) reactive demand.
5. Adjustments for Reactive Losses
    Measured data shall be adjusted for reactive losses, if applicable, 
before determination of the Reactive Billing Demand.

D. Rate Adjustment Due to FERC Order Under FPA Sec.  212

    If, after review by FERC, the NT, PTP, IS, or IM rate schedule, as 
initially submitted to FERC, is modified to satisfy the standards of 
section 212(i)(1)(B)(ii) of the Federal Power Act (16 U.S.C. 
824k(i)(1)(B)(ii)) for FERC-ordered transmission service, then such 
modifications shall automatically apply to the rate schedule for non-
section 212(i)(1)(B)(ii) transmission service. The modifications for 
non-section 212(i)(1)(B)(ii) transmission service, as described above, 
shall be effective, however, only prospectively from the date of the 
final FERC order granting final approval of the rate schedule for FERC-
ordered transmission service pursuant to section 212(i)(1)(B)(ii). No 
refunds shall be made or additional costs charged as a consequence of 
this prospective modification for any non-section 212(i)(1)(B)(ii) 
transmission service that occurred under the rate schedule prior to the 
effective date of such prospective modification.

E. Reservation Fee

    The Reservation Fee is a nonrefundable fee that shall be charged to 
any PTP Transmission Service customer who postpones the commencement of 
service by:
    a. reserving ``deferred'' service for Long-Term Firm Point-to-Point 
Transmission Service through an advanced reservation; or
    b. requesting an extension of the Service Commencement Date 
specified in the executed Service Agreement.
    For requests beginning October 1, 2001, ``deferred'' service is any 
advance reservation of Long-Term Firm Point-to-Point Transmission 
Service with a Service Commencement Date greater than one (1) year from 
the request date.
    The Reservation Fee shall be specified in the executed agreement 
for transmission service.
1. Fee
    The Reservation Fee shall be a nonrefundable fee equal to one 
month's charge for the requested Long-Term Firm Point-to-Point 
Transmission Service for each year or fraction of a year for which the 
customer chooses to defer service or extend the Service Commencement 
Date. The Reservation Fee shall be paid annually until transmission 
service begins or the reservation period ends, whichever occurs first.
2. Payment
    a. For deferred service, the Reservation Fee for the first year 
shall be paid in a lump sum within 30 days of the date the first year 
service deferral begins. For subsequent years, the Reservation Fee 
shall be paid in a lump sum within 30 days of the anniversary date of 
deferred service. The Reservation Fee shall be assessed annually until 
transmission service begins or the reservation period ends, whichever 
occurs first.
    b. For extensions of the Service Commencement Date, the Reservation 
Fee for the first extension of the Service Commencement Date shall be 
paid in a lump sum within 30 days of the original Service Commencement 
Date. For subsequent extensions, the Reservation Fee shall be paid in a 
lump sum within 30 days of the anniversary date of the original Service 
Commencement Date.

F. Transmission and Ancillary Services Rate Discounts

    BPA-TBL may offer discounted rates for transmission and ancillary 
services available under the Open Access Transmission Tariff and to the 
extent provided for in the PTP, IS, IM and ACS rate schedules.
    Three principal requirements apply to discounts for transmission 
service, and for Ancillary Services provided by the Transmission 
Provider in conjunction with its provision of transmission service, as 
follows:
    a. Any offer of a discount made by the Transmission Provider must 
be announced to all Eligible Customers solely by posting on the OASIS;
    b. 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
    c. Once a discount is negotiated, details must be immediately 
posted on the OASIS.
    For any discount agreed upon for transmission 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.
    A discount agreed upon for an Ancillary Service must be offered for 
the same period to all Eligible Customers on the Transmission 
Provider's System.

G. Unauthorized Increase Charge (UIC)

    Transmission Customers taking Point-to-Point Transmission Service 
under the PTP, IS, and IM Rate Schedules shall be assessed the UIC when 
they exceed their capacity reservations at any Point of Receipt (POR) 
or Point of Delivery (POD). Transmission Customers taking Network 
Integration Transmission Service under the NT Rate Schedule shall be 
assessed the UIC if their Actual Customer-Served Load (CSL) is less 
than their Declared CSL.
1. Rate
    a. Point-To-Point Transmission Service (PTP, IS, and IM Rate 
Schedules). (1) Long-Term Transmission Service.--The UIC rate shall be 
two (2) times the PTP, IS, or IM rate per kilowatt per month for Long-
Term Firm PTP Transmission Service as specified in section II.A. of the 
applicable rate schedule.
    (2) Monthly, Weekly, and Daily Transmission Service.--The UIC rate 
shall be two (2) times the rate per kilowatt for transmission service, 
calculated by applying the rates per kilowatt per day specified in 
section II.B.1 of the applicable rate schedule to the total number of 
days of the transmission reservation.
    The UIC rate shall not exceed two (2) times the PTP, IS, or IM rate 
per kilowatt per month for Long-Term Firm Transmission Service.
    (3) Hourly Transmission Service.--The UIC rate shall be two (2) 
times the rate per kilowatt for transmission service, calculated by 
applying the rate per kilowatthour specified in section II.B.2 of the 
applicable rate schedule to

[[Page 78109]]

the total number of hours of the transmission reservation.
    b. Network Integration Transmission Service (NT Rate Schedule).--
$2.056 per kilowatt per month
2. Billing Factors
    a. Point-To-Point Transmission Service (PTP, IS, and IM Rate 
Schedules.--For each hour of the monthly billing period, BPA-TBL shall 
determine the amount by which the Transmission Customer exceeds its 
capacity reservation at each POD and POR, to the extent practicable. 
BPA-TBL shall use hourly measurements based on a 10-minute moving 
average to calculate actual demands at PODs associated with loads that 
are one-way dynamically scheduled and at PORs associated with resources 
that are one-way dynamically scheduled. To calculate actual demands at 
PODs and PORs that are associated with two-way dynamic schedules, BPA-
TBL shall use instantaneous peak demands for each hour. Actual demands 
at all other PODs and PORs will be based on 60-minute integrated 
demands or transmission schedules.
    For each hour, BPA-TBL will sum these amounts that exceed capacity 
reservations: (1) for all PODs, and (2) for all PORs. The Billing 
Factor for the monthly billing period shall be the greater of the 
highest one-hour POD sum or highest one-hour POR sum.
    b. Network Integration Transmission Service (NT Rate Schedule).--In 
each billing month on the hour of the Monthly Transmission Peak Load, 
the Billing Factor shall equal the Declared CSL minus the Actual CSL.
3. UIC Relief
    Under appropriate circumstances, BPA-TBL may waive or reduce the 
UIC to a Transmission Customer on a non-discriminatory basis. A 
Transmission Customer seeking a reduction or waiver must demonstrate 
good cause for relief, including a demonstration that:
    1. The event which resulted in the UIC
    (a) was the result of an equipment failure or outage that could not 
reasonably have been foreseen by the customer; and
    (b) did not result in harm to BPA-TBL's transmission system or 
transmission services, or to any other Transmission Customer; or
    2. The event which resulted in the UIC
    (a) was inadvertent;
    (b) could not have been avoided by the exercise of reasonable care;
    (c) did not result in harm to BPA-TBL's transmission system or 
transmission services, or to any other Transmission Customer; and
    (d) was not part of a recurring pattern of conduct by the 
Transmission Customer.
    If a waiver or reduction is granted to a Transmission Customer, 
notice of such waiver or reduction will be posted on the BPA-TBL's 
OASIS.
    If the Transmission Customer is subject to a UIC in a month, but 
has not received notice from the BPA-TBL of such UIC by billing or 
otherwise, and the Transmission Customer is also subject to UIC(s) in 
following month(s) due to the lack of notice, then BPA-TBL may bill the 
Transmission Customer for the highest UIC in the series. The UIC for 
all other months (including the first month(s) if it does not have the 
highest UIC) in such a series will be waived.

H. GTA Delivery Charge

    Customers who purchase Federal power that is delivered over non-
Federal low voltage transmission facilities shall pay a GTA Delivery 
Charge. The GTA Delivery Charge is a BPA Power Business Line charge for 
low voltage delivery service of Federal power provided under General 
Transfer Agreements (GTAs) and other non-Federal transmission service 
agreements.
1. Rate
    $0.946 per kilowatt per month
2. Billing Factor
    The monthly Billing Factor for the GTA Delivery rate shall be the 
total amount of Federal power delivered on the hour of the Monthly 
Transmission Peak Load at the low voltage Points of Delivery provided 
for in GTA and other non-Federal transmission service agreements.
    At those Points of Delivery that do not have meters capable of 
determining the demand on the hour of the Monthly Transmission Peak 
Load, the Billing Factor shall equal the highest hourly demand that 
occurs during the billing month at the Point of Delivery multiplied by 
0.79.

Section III. Definitions

1. Ancillary Services

    Ancillary Services are those services that are necessary to support 
the transmission of capacity and energy from resources to loads while 
maintaining reliable operation of BPA-TBL's Transmission System in 
accordance with Good Utility Practice. Ancillary Services include: 
Scheduling, System Control and Dispatch; Reactive Supply and Voltage 
Control from Generation Sources; Regulation and Frequency Response; 
Energy Imbalance; Operating Reserve--Spinning; and Operating Reserve--
Supplemental. Ancillary Services are available under the ACS rate 
schedule.

2. Billing Factor

    The Billing Factor is the quantity to which the charge specified in 
the rate schedule is applied. When the rate schedule includes charges 
for several products, there may be a Billing Factor for each product.

3. Control Area

    A Control Area is 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.

4. Control Area Services

    Control Area Services are available to meet the Reliability 
Obligations of a party with resources or loads in the BPA Control Area. 
A party that is not satisfying all of its Reliability Obligations 
through the purchase or self-provision of Ancillary Services may 
purchase Control Area Services to meet its Reliability Obligations. 
Control Area Services are also available to parties with resources or 
loads in the BPA Control Area that have Reliability Obligations, but do 
not have a transmission agreement with BPA-TBL. Reliability Obligations 
for resources or loads in the BPA Control Area are determined by 
applying the North American Electric Reliability Council (NERC), 
Western Electricity Coordinating Council (WECC), and the Northwest 
Power Pool (NWPP) reliability criteria. Control Area Services, include, 
without limitation:
a. Regulation and Frequency Response Service
b. Generation Imbalance Service
c. Operating Reserve--Spinning Reserve Service

[[Page 78110]]

d. Operating Reserve--Supplemental Reserve Service
e. Other Control Area services.

5. Daily Service

    Daily Service is Short-Term Firm and Non-Firm PTP Transmission 
Service that starts at 00:00 of any date and stops at 00:00 at least 
one (1) day later, but less than or equal to six (6) days later.

6. Direct Assignment Facilities

    Facilities or portions of facilities that are constructed by the 
BPA-TBL for the sole use/benefit of a particular Transmission Customer 
requesting service under the Open Access Transmission Tariff, the costs 
of which may be directly assigned to the Transmission Customer in 
accordance with applicable Federal Energy Regulatory Commission policy. 
Direct Assignment Facilities shall be specified in the service 
agreement that governs service to the Transmission Customer.

7. Direct Service Industry (DSI) Delivery

    The DSI Delivery segment is the segment of the FCRTS that provides 
service to DSI customers at voltages of 34.5 kV and below.

8. Dynamic Schedule

    A Dynamic Schedule is a telemeter reading or value which is updated 
in real time and which is used as a schedule in the Automatic 
Generation Control (AGC) and Area Control Error (ACE) equation of the 
BPA-TBL and the integrated value of which is treated as a schedule for 
interchange accounting purposes. One-way Dynamic Schedules are commonly 
used for scheduling remote generation or remote load to or from another 
Control Area. Two-way Dynamic Schedules are commonly used to provide 
supplemental regulation or operating reserve support from one entity to 
another, usually between Control Areas. The Receiving Party sends the 
Delivering Party a requested Dynamic Schedule (the first part of the 
two-way schedule). The Delivering Party then responds with the official 
Dynamic Schedule of what actually is delivered to the Receiving Party 
(the second part of the two-way schedule).

9. Dynamic Transfer

    Dynamic Transfer is the provision of real-time monitoring, 
telemetering, computer software, hardware, communications, engineering, 
transmission capacity and energy accounting (including inadvertent 
interchange), and administration, including transmission scheduling, 
required to electronically move all or a portion of the real energy 
services associated with a generator or load out of one Control Area 
into another Control Area.

10. Eastern Intertie

    The Eastern Intertie is the segment of the Federal Columbia River 
Transmission System (FCRTS) for which the transmission facilities 
consist of the Townsend-Garrison double-circuit 500 kV transmission 
line segment, including related terminals at Garrison.

11. 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 BPA-TBL 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 BPA-TBL or make alternative comparable 
arrangements specified in the Transmission Customer's Service Agreement 
to satisfy its Energy Imbalance Service obligation.

12. Federal Columbia River Transmission System

    The Federal Columbia River Transmission System (FCRTS) is the 
transmission facilities of the Federal Columbia River Power System, 
which include all transmission facilities owned by the government and 
operated by BPA, and other facilities over which BPA has obtained 
transmission rights.

13. Federal System

    The Federal System is the generating facilities of the Federal 
Columbia River Power System, including the Federal generating 
facilities for which BPA is designated as marketing agent; the Federal 
facilities under the jurisdiction of BPA; and any other facilities:
    a. from which BPA receives all or a portion of the generating 
capability (other than station service) for use in meeting BPA's loads 
to the extent BPA has the right to receive such capability. ``BPA's 
loads'' do not include any of the loads of any BPA customer that are 
served by a non-Federal generating resource purchased or owned directly 
by such customer which may be scheduled by BPA;
    b. which BPA may use under contract or license; or
    c. to the extent of the rights acquired by BPA pursuant to the 1961 
U.S.-Canada Treaty relating to the cooperative development of water 
resources of the Columbia River Basin.

14. Generation Imbalance

    Generation Imbalance is the difference between the hourly scheduled 
amount and actual delivered amount of energy from a generation resource 
in the BPA Control Area.

15. Generation Imbalance Service

    Generation Imbalance Service is taken when there is a difference 
between scheduled and actual energy delivered from generation resources 
in the BPA Control Area during a schedule hour.

16. Heavy Load Hours (HLH)

    Heavy Load Hours (HLH) are all those hours in the peak period hour 
ending 7 a.m. to the hour ending 10 p.m., Monday through Saturday, 
Pacific Prevailing Time (Pacific Standard Time or Pacific Daylight 
Time, as applicable). There are no exceptions to this definition; that 
is, it does not matter whether the day is a normal working day or a 
holiday.

17. Hourly Firm Point-To-Point (PTP) Transmission Service

    Hourly Firm Point-To-Point (PTP) Service, or Hourly Firm Service, 
is firm transmission service under Part II of the Open Access 
Transmission Tariff in hourly increments.

18. Hourly Nonfirm Service

    Hourly Nonfirm Service is nonfirm transmission service under Part 
II of the Open Access Transmission Tariff in hourly increments.

19. Integrated Demand

    Integrated Demand is the quantity derived by mathematically 
``integrating'' kilowatthour deliveries over a 60-minute period. For 
one-way dynamic schedules, demand is integrated on a rolling ten-minute 
basis.

20. Intentional Deviation

    BPA, in its sole determination, may find that an Intentional 
Deviation exists if:
    (a) A deviation is persistent during multiple consecutive hours or 
at specific times of the day;
    (b) A pattern of under-delivery or over-use of energy occurs; or
    (c) Persistent over-generation or under-use during Light Load 
Hours, particularly when the customer does not respond by adjusting 
schedules for future days to correct these patterns.

21. Light Load Hours (LLH)

    Light Load Hours (LLH) are all those hours in the offpeak period 
hour ending 11 p.m. to hour ending 6 a.m., Monday through Saturday and 
all hours Sunday, Pacific Prevailing Time (Pacific

[[Page 78111]]

Standard Time or Pacific Daylight Time, as applicable).

22. Long-Term Firm Point-To-Point (PTP) Transmission Service

    Long-Term Firm Point-to-Point Transmission Service is Firm Point-
To-Point Transmission Service under Part II of the Open Access 
Transmission Tariff with a term of one year or more.

23. Main Grid

    As used in the FPT rate schedule, the Main Grid is that portion of 
the Network facilities with an operating voltage of 230 kV or more.

24. Main Grid Distance

    As used in the FPT rate schedules, Main Grid Distance is the 
distance in airline miles on the Main Grid between the Point of 
Integration (POI) and the Point of Delivery (POD), multiplied by 1.15.

25. Main Grid Interconnection Terminal

    As used in the FPT rate schedules, Main Grid Interconnection 
Terminal refers to Main Grid terminal facilities that interconnect the 
FCRTS with non-BPA facilities.

26. Main Grid Miscellaneous Facilities

    As used in the FPT rate schedules, Main Grid Miscellaneous 
Facilities refers to switching, transformation, and other facilities of 
the Main Grid not included in other components.

27. Main Grid Terminal

    As used in the FPT rate schedules, Main Grid Terminal refers to the 
Main Grid terminal facilities located at the sending and/or receiving 
end of a line, exclusive of the Interconnection terminals.

28. Measured Demand

    The Measured Demand is that portion of the customer's Metered or 
Scheduled Demand for transmission service from BPA-TBL under the 
applicable transmission rate schedule. If transmission service to a 
point of delivery, or from a point of receipt, is provided under more 
than one rate schedule, the portion of the measured quantities assigned 
to any rate schedule shall be as specified by contract. The portion of 
the total Measured Demand so assigned shall be the Measured Demand for 
transmission service for each transmission rate schedule.

29. Metered Demand

    Except for dynamic schedules, the Metered Demand in kilowatts shall 
be the largest of the 60-minute clock-hour Integrated Demands at which 
electric energy is delivered (received) for a transmission customer:
    a. At each point of delivery (receipt) for which the Metered Demand 
is the basis for the determination of the Measured Demand;
    b. During each time period specified in the applicable rate 
schedule; and
    c. During any billing period.
    Such largest Integrated Demand shall be determined from 
measurements made in accord with the provisions of the applicable 
contract and these GRSPs. This amount shall be adjusted as provided 
herein and in the applicable agreement between BPA-TBL and the 
customer.
    For one-way Dynamic Schedules, the Metered Demand in kilowatts 
shall be the largest 10 minute moving average of the load (generation) 
at the point of delivery (receipt). The 10-minute moving average shall 
be assigned to the hour in which the 10 minute period ends. For two-way 
Dynamic Schedules, the Metered Demand in kilowatts shall be the largest 
instantaneous value of the Dynamic Schedule during the hour.

30. Montana Intertie

    The Montana Intertie is the double-circuit 500 kV transmission line 
and associated substation facilities from Broadview Substation to 
Garrison Substation.

31. Monthly Firm Service

    Monthly Firm Service is Short-Term Firm PTP Transmission Service 
that starts at 00:00 of any date and stops at 00:00 at least 28 days 
later, but less than or equal to 364 days later.

32. Monthly Non-Firm Service

    Monthly Non-Firm Service is Non-Firm PTP Transmission Service that 
starts at 00:00 of any date and stops at 00:00 at least 28 days later, 
but less than or equal to 31 days later.

33. Monthly Transmission Peak Load

    Monthly Transmission Peak Load is the peak loading on the Federal 
transmission system during any hour of the designated billing month, 
determined by the largest hourly integrated demand produced from the 
sum of Federal and non-Federal generating plants in BPA's Control Area 
and metered flow into BPA's Control Area.

34. Network (or Integrated Network)

    The Network is the segment of the Federal Columbia River 
Transmission System (FCRTS) for which the transmission facilities 
provide the bulk of transmission of electric power within the Pacific 
Northwest.

35. Network Integration Transmission (NT) Service

    Network Integration Transmission (NT) Service is the transmission 
service provided under Part III of the Open Access Transmission Tariff.

36. Network Load

    Network Load is the load that a Network Customer designates for 
Network Integration Transmission Service under Part III of the Open 
Access Transmission 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.

37. Network Upgrades

    Network Upgrades are modifications or additions to transmission-
related facilities that are integrated with and support the BPA-TBL's 
overall Transmission System for the general benefit of all users of 
such Transmission System.

38. Non-Firm Point-To-Point (PTP) Transmission Service

    Non-Firm Point-To-Point Transmission Service is Point-To-Point 
Transmission Service under the Open Access Transmission 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 PTP Transmission Service is available on a 
stand-alone basis for periods ranging from one hour to one month.

39. Operating Reserve--Spinning Reserve Service

    Operating Reserve--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 BPA-TBL must offer this service when 
the transmission service is provided to load served by generation 
located in the BPA Control Area. The Transmission or Control Area 
Service Customer must either purchase this service from the BPA-TBL or 
make

[[Page 78112]]

alternative comparable arrangements to satisfy its Spinning Reserve 
Service obligation. The Transmission or Control Area Service Customer's 
obligation is determined consistent with North American Electric 
Reliability Council (NERC), Western Systems Coordinating Council (WECC) 
and Northwest Power Pool (NWPP) criteria.

40. Operating Reserve--Supplemental Reserve Service

    Operating Reserve--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 BPA-TBL must offer this service when the transmission service 
is provided to load served by generation located in the BPA Control 
Area. The Transmission or Control Area Service Customer must either 
purchase this service from the BPA-TBL or make alternative comparable 
arrangements to satisfy its Supplemental Reserve Service obligation. 
The Transmission Customer's obligation is determined consistent with 
North American Electric Reliability Council (NERC), Western Electricity 
Coordinating Council (WECC) and Northwest Power Pool criteria.

41. Operating Reserve Requirement

    Operating Reserve Requirement is a party's total reserve obligation 
to the BPA Control Area. A party is responsible for purchasing or 
otherwise providing Operating Reserves associated with its transactions 
which impose a reserve obligation on the BPA Control Area. Operating 
Reserve Requirement is composed of two parts: regulating reserve 
obligation and contingency reserve obligation.
    A party's regulating reserve obligation is met by purchasing 
Regulation and Frequency Response Service. The contingency reserve 
obligation is satisfied by purchasing or otherwise providing Operating 
Reserve--Spinning Reserve Service and Operating Reserve--Supplemental 
Reserve Service.
    The specific amounts required are determined consistent with North 
American Electric Reliability Council (NERC) Policies, the Northwest 
Power Pool (NWPP) Operating Manual, ``Contingency Reserve Sharing 
Procedure,'' and the Western Electricity Coordinating Council (WECC) 
``Minimum Operating Reliability Criteria'' (MORC).

42. Point(s) of Delivery (POD)

    Point(s) on the BPA-TBL's Transmission System, or transfer points 
on other utility systems pursuant to section 36 of the Open Access 
Transmission Tariff (Tariff), where capacity and energy transmitted by 
the BPA-TBL will be made available to the Receiving Party under Parts 
II and III of the Tariff or to the Transmission Customer under other 
BPA transmission service agreements. The Point(s) of Delivery shall be 
specified in the Service Agreement for Long-Term Firm Point-to-Point 
Service, Network Integration Transmission Service, and other BPA-TBL 
transmission services.

43. Point of Integration (POI)

    A Point of Integration is the contractual interconnection point 
where power is received from the customer. Typically, a point of 
integration is located at a resource site, but it could be located at 
some other interconnection point.

44. Point of Interconnection (POI)

    A Point of Interconnection is a point where the facilities of two 
entities are interconnected. This term has the same meaning as ``Point 
of Integration'' and ``Point of Receipt'' in certain pre-Open Access 
Transmission Tariff service agreements.

45. Point(s) of Receipt (POR)

    Point(s) of Receipt are the point(s) of interconnection on the BPA-
TBL's Transmission System where capacity and energy will be made 
available to the BPA-TBL by the Delivering Party under Parts II and III 
of the Open Access Transmission Tariff. The Point(s) of Receipt shall 
be specified in the Service Agreement for Long-Term Firm Point-to-Point 
Service, Network Integration Transmission Service, and other BPA-TBL 
transmission services.

46. Ratchet Demand

    The Ratchet Demand in kilowatts or kilovars is the maximum demand 
established during a specified period of time either during, or prior 
to, the current billing period. The Ratchet Demand shall be the maximum 
demand established during the previous 11 billing months. If a 
Transmission Demand has been decreased pursuant to the terms of the 
transmission agreement during the previous 11 billing months, such 
decrease will be reflected in determining the Ratchet Demand. The 
Ratchet Demand for reactive power is defined in the Power Factor 
Penalty Charge at section II.D of these GRSPs.

47. Reactive Power

    Reactive Power is the out-of-phase component of the total volt-
amperes in an electric circuit. Reactive Power has two components: 
reactive demand (expressed in kilovars or kVAr) and reactive energy 
(expressed in kilovarhours or kVArh).

48. Reactive Supply and Voltage Control from Generation Sources Service

    Reactive Supply and Voltage Control from Generation Sources Service 
is required to maintain voltage levels on the BPA-TBL's transmission 
facilities within acceptable limits. In order to maintain transmission 
voltages on the BPA-TBL's transmission facilities within acceptable 
limits, generation facilities (in the Control Area where the BPA-TBL's 
transmission facilities are located) 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 
BPA-TBL'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 BPA-TBL. The Transmission 
Customer must purchase this service from the BPA-TBL.

49. 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 BPA-TBL. The BPA-TBL 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 BPA-TBL or make alternative comparable arrangements to 
satisfy its Regulation and Frequency Response Service obligation.

[[Page 78113]]

50. Reliability Obligations

    Reliability Obligations are the obligations that a party with 
resources or loads in the BPA Control Area must provide in order to 
meet minimum reliability standards. Reliability Obligations shall be 
determined consistent with applicable North American Electric 
Reliability Council (NERC), Western Electricity Coordinating Council 
(WECC), and Northwest Power Pool (NWPP) standards. BPA-TBL offers 
Ancillary Services and Control Area Services to allow resources or 
loads to meet their Reliability Obligations.

51. Capacity Reserved

    The maximum amount of capacity and energy that BPA-TBL agrees to 
transmit for the Transmission Customer over the BPA-TBL's Transmission 
System between the Point(s) of Receipt and the Point(s) of Delivery 
under Part II of the Open Access Transmission Tariff. Reserved Capacity 
shall be expressed in terms of whole megawatts on a sixty (60) minute 
interval (commencing on the clock hour) basis. In cases where Dynamic 
Schedules are involved, the Reserved Capacity must be set at a level to 
accommodate (a) a demand equal to the largest ten-minute (10) moving 
average of the load or generation expected to occur during the contract 
period for one-way Dynamic Schedules used to transfer generation or 
load from one Control Area to another Control Area; or (b) a demand 
equal to the instantaneous peak demand, for each direction, of the 
supplemental Control Area service request expected to occur during the 
contract period for two-way Dynamic Transfers, used to provide 
supplemental Control Area services. The supplemental Control Area 
service response shall always be the lesser of the Control Area service 
request or the Reserved Capacity associated with the supplemental 
Control Area service.

52. Scheduled Demand

    Scheduled Demand is the hourly demand at which electric energy is 
scheduled for transmission on the FCRTS.

53. Scheduling, System Control and Dispatch Service

    Scheduling, System Control and Dispatch 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. The Transmission Customer must purchase this 
service from the BPA-TBL.

54. Secondary System

    As used in the FPT rate schedules, Secondary System is that portion 
of the Network facilities with an operating voltage between 69 kV to 
less than 230 kV.

55. Secondary System Distance

    As used in the FPT rate schedules, Secondary System Distance is the 
number of circuit miles of Secondary System transmission lines between 
the secondary Point of Integration and either the Main Grid or the 
secondary Point of Delivery (POD), or between the Main Grid and the 
secondary POD.

56. Secondary System Interconnection Terminal

    As used in the FPT rate schedules, Secondary System Interconnection 
Terminal refers to the terminal facilities on the Secondary System that 
interconnect the FCRTS with non-BPA-TBL facilities.

57. Secondary System Intermediate Terminal

    As used in the FPT rate schedules, Secondary System Intermediate 
Terminal refers to the first and final terminal facilities in the 
Secondary System transmission path, exclusive of the Secondary System 
Interconnection terminals.

58. Secondary Transformation

    As used in the FPT rate schedules, Secondary Transformation refers 
to transformation from Main Grid to Secondary System facilities.

59. Short-Term Firm Point-To-Point (PTP) Transmission Service

    Short-Term Firm Point-To-Point Transmission Service is Firm Point-
To-Point Transmission Service under Part II of the Open Access 
Transmission Tariff with a term of less than one year. Short-Term Firm 
Point-To-Point Transmission Service of duration of less than one 
calendar day is sometimes referred to as Hourly Firm Point-To-Point 
Transmission Service.

60. Southern Intertie

    The Southern Intertie is the segment of the FCRTS that includes, 
but is not limited to, the major transmission facilities consisting of 
two 500 kV AC lines from John Day Substation to the Oregon-California 
border; a portion of the 500 kV AC line from Buckley Substation to 
Summer Lake Substation; and the 500 kV AC Intertie facilities, which 
include Captain Jack Substation, the Alvey-Meridian AC line, one 1,000 
kV DC line between the Celilo Substation and the Oregon-Nevada border, 
and associated substation facilities.

61. Spill Condition

    Spill Condition, for the purpose of determining credit or payment 
for Deviations under the Energy Imbalance and Generation Imbalance 
rates, exists when spill physically occurs on the BPA system due to 
lack of load or market. Spill due to lack of load or market typically 
occurs during periods of high flows or flood control implementation, 
but can also occur at other times. Discretionary spill, where BPA may 
choose whether to spill, does not constitute a Spill Condition. Spill 
for fish is included in discretionary spill and is not a Spill 
Condition.

62. Spinning Reserve Requirement

    Spinning Reserve Requirement is a portion of a party's Operating 
Reserve Requirement to the BPA Control Area. A party is responsible for 
purchasing or otherwise providing Operating Reserve--Spinning Reserve 
Service associated with its transactions which impose a reserve 
obligation on the BPA Control Area.
    The specific amounts required are determined consistent with North 
American Electric Reliability Council (NERC) Policies, the Northwest 
Power Pool (NWPP) Operating Manual, ``Contingency Reserve Sharing 
Procedure,'' and the Western Electricity Coordinating Council (WECC) 
``Minimum Operating Reliability Criteria'' (MORC).

63. Supplemental Reserve Requirement

    Supplemental Reserve Requirement is a portion of a party's 
Operating Reserve Requirement to the BPA Control Area. A party is 
responsible for purchasing or otherwise providing Operating Reserve--
Supplemental Reserve Service associated with its transactions which 
impose a reserve obligation on the BPA Control Area.
    The specific amounts required are determined consistent with North 
American Electric Reliability Council (NERC) Policies, the Northwest 
Power Pool (NWPP) Operating Manual, ``Contingency Reserve Sharing 
Procedure,'' and the Western Electricity Coordinating Council (WECC) 
``Minimum Operating Reliability Criteria'' (MORC).

64. Total Transmission Demand

    Total Transmission Demand is the sum of all the transmission 
demands as defined in the applicable agreement.

[[Page 78114]]

65. Transmission Customer

    A Transmission Customer is any Eligible Customer (or its Designated 
Agent) under the Open Access Transmission Tariff that (a) executes a 
Service Agreement, or (b) requests in writing that the BPA-TBL file 
with the Commission, a proposed unexecuted Service Agreement to receive 
transmission service under Part II of the Tariff. In addition, a 
Transmission Customer is an entity that has executed any other 
transmission service agreement with the BPA-TBL.

66. Transmission Demand

    Transmission Demand is the maximum amount of capacity and energy 
that the BPA-TBL agrees to transmit for the Transmission Customer over 
the BPA-TBL's Transmission System between the Point(s) of Integration/
Interconnection/Receipt and the Point(s) of Delivery.

67. Transmission Provider

    The Bonneville Power Administration's Transmission Business Line 
(BPA-TBL) that owns, controls, or operates facilities used for the 
transmission of electric energy in interstate commerce and provides 
transmission service under the Open Access Transmission Tariff and 
other agreements.

68. Utility Delivery

    The Utility Delivery segment is that segment of the FCRTS that 
provides service to utility customers at voltages below 34.5 kV.

69. Weekly Service

    Weekly Service is Short-Term Firm and Non-Firm PTP Transmission 
Service that starts at 00:00 of any date and stops at 00:00 at least 
seven (7) days later, but less than or equal to 27 days later.

    Issued in Portland, Oregon, on December 12, 2002.
Stephen J. Wright,
Administrator and Chief Executive Officer.
[FR Doc. 02-32070 Filed 12-19-02; 8:45 am]
BILLING CODE 6450-01-P