50572 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

for service billed on and after August 1,

1997.

A copy of the filing was served upon

the Parties and the State Utility

Regulatory Commissions of Indiana,

Kentucky, Michigan, Ohio, Tennessee,

Virginia and West Virginia.

Comment date: October 3, 1997, in

accordance with Standard Paragraph E

at the end of this notice.

23. Additional Signatory to PJM

Interconnection, L.L.C. Operating

Agreement

[Docket No. ER97–4433–000]

Take notice that on September 2,

1997, the PJM Interconnection, L.L.C.

(PJM) filed, on behalf of the Members of

the LLC, a membership application of

Constellation Power Source, Inc. PJM

requests an effective date of August 30,

1997.

Comment date: October 3, 1997, in

accordance with Standard Paragraph E

at the end of this notice.

24. Clean Air Capital Markets

Corporation

[Docket No. ER97–4434–000]

Take notice that on September 2,

1997, Clean Air Capital Markets

Corporation (CACM) petitioned the

Commission for acceptance of CACM

Rate Schedule FERC No. 1; the granting

of certain blanket approvals, including

the authority to sell electricity at

market-based rates; and the waiver of

certain Commission regulations.

CACM intends to engage in wholesale

electric power and energy purchases

and sales as a marketer. CACM is not in

the business of generating or

transmitting electric power.

Comment date: October 3, 1997, in

accordance with Standard Paragraph E

at the end of this notice.

25. Idaho County Light & Power

Cooperative Association, Inc.

[Docket No. ER97–4435–000]

Take notice that on September 2,

1997, Idaho County Light & Power

Cooperative Association Inc.(Idaho

County), submitted for filing a Revised

Agreement for Transmission and Power

Supply Services to David Cereghino, as

amended pursuant to § 205 of the

Federal Power Act (FPA), 16 U.S.C.

824d, and 35.12 of the Regulations of

the Federal Energy Regulatory

Commission (Commission), 18 CFR

35.12. Idaho County’s filing is available

for public inspection at its offices in

Lucile, Idaho.

Idaho County requests that the

Commission accept the Revised Service

Agreement with an effective date of

October 7, 1997.

Comment date: October 3, 1997, in

accordance with Standard Paragraph E

at the end of this notice.

26. The Detroit Edison Company

[Docket No. ER97–4436–000]

Take notice that on September 2,

1997, The Detroit Edison Company

(Detroit Edison), tendered for filing a

Service Agreement for Network

Integration Transmission Service (the

Service Agreement) between Detroit

Edison Transmission Operations and

Thumb Electric Cooperative under the

Joint Open Access Transmission Tariff

of Consumers Energy Company and

Detroit Edison, FERC Electric Tariff No.

1, dated as of November 1, 1997. Detroit

Edison requests that the Service

Agreement be made effective as of

November 1, 1997.

Comment date: October 3, 1997, in

accordance with Standard Paragraph E

at the end of this notice.

27. Duquesne Light Company

[Docket No. ES97–48–000]

Take notice that on September 15,

1997, Duquesne Light Company filed an

application with the Federal Energy

Regulatory Commission, pursuant to

Section 204 of the Federal Power Act, to

issue not more than $600,000,000 of

promissory notes and commercial paper

and other evidences of indebtedness

from time to time with a final maturity

date of not later than October 31, 2000.

Comment date: October 14, 1997, in

accordance with Standard Paragraph E

at the end of this notice.

28. Wisconsin Public Service

Corporation

[Docket No. ER97–4428–000]

Take notice that on Setpember 2,

1997, Wisconsin Public Service

Corporation (WPSC), tendered for filing

an executed Transmission Service

Agreement between WPSC and

Southern Energy Trading and Market.

The Agreement provides for

transmission service under the Open

Access Transmission Service Tariff,

FERC Original Volume No. 11.

Comment date: October 3, 1997, in

accordance with Standard Paragraph E

at the end of this notice.

Standard Paragraph

E. Any person desiring to be heard or

to protest said filing should file a

motion to intervene or protest with the

Federal Energy Regulatory Commission,

888 First Street, N.E., Washington, D.C.

20426, in accordance with Rules 211

and 214 of the Commission’s Rules of

Practice and Procedure (18 CFR 385.211

and 18 CFR 385.214). All such motions

or protests should be filed on or before

the comment date. Protests will be

considered by the Commission in

determining the appropriate action to be

taken, but will not serve to make

protestants parties to the proceeding.

Any person wishing to become a party

must file a motion to intervene. Copies

of this filing are on file with the

Commission and are available for public

inspection.

Lois D. Cashell,

Secretary.

[FR Doc. 97–25618 Filed 9–25–97; 8:45 am]

BILLING CODE 6717–01–P

DEPARTMENT OF ENERGY

Western Area Power Administration

Open Access Transmission Service

Tariff

AGENCY: Western Area Power

Administration, DOE.

ACTION: Notice of proposed tariff.

SUMMARY: The Western Area Power

Administration (Western) is proposing

to adopt this Open Access Transmission

Service Tariff (Tariff) in order to be

consistent with the Federal Energy

Regulatory Commission (FERC) Orders

888 and 888–A to the extent practicable

and consistent with laws applicable to

Western’s activities.

DATES: The comment period on the

proposed Tariff will begin with the

publication of this notice in the Federal

Register and will end October 27, 1997.

To be assured of consideration, all

written comments must be received by

the end of the comment period. Western

will hold a combined public

information and public comment forum

on the proposed Tariff beginning at 1

p.m., October 7, 1997.

ADDRESSES: The combined public

information and public comment forum

will be held at the Stapleton Plaza

Hotel, 3333 Quebec Street, Denver,

Colorado.

All written comments regarding this

proposed Tariff should be directed to

the following address: Mr. Robert C.

Fullerton, A0600, Corporate

Communications, Western Area Power

Administration, 1627 Cole Boulevard,

P.O. Box 3402, Golden, CO 80401–0098,

Electronic Mail: tariff@wapa.gov

Facsimile: (303) 275–1290.

FOR FURTHER INFORMATION CONTACT:

Mr. Robert J. Harris, Power Marketing

Manager, Upper Great Plains Region,

Western Area Power Administration,

P.O. Box 35800, Billings, MT 59107–

5800, (406) 247–7394
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50573

Mr. Dave Sabo, CRSP Manager, CRSP

Customer Service Center, Western

Area Power Administration, P.O. Box

11606, Salt Lake City, UT 84147–

0606, (801) 524–5493

Mr. Anthony H. Montoya, Power

Marketing Manager, Desert Southwest

Region, Western Area Power

Administration, P.O. Box 6457,

Phoenix, AZ 85005–6457, (602) 352–

2789

Mr. James D. Keselburg, Power

Marketing Manager, Rocky Mountain

Region, Western Area Power

Administration, P.O. Box 3700,

Loveland, CO 80539–3003, (970) 490–

7370

Ms. Zola Jackson, Power Marketing

Manager, Sierra Nevada Region,

Western Area Power Administration,

114 Parkshore Drive, Folsom, CA

95630–4710, (916) 353–4421.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Procedures

II. Background

III. Issues Raised During the Development of

this Proposed Tariff

IV. Summary of Changes from the FERC Pro

Forma Tariff

V. Coordination with Adoption of Open

Access Transmission Rates

I. Procedures

After all public comments have been

considered, Western will prepare a final

Tariff and publish it in the Federal

Register. Western will submit the final

Tariff to FERC under a nonjurisdictional

docket and will request a declaratory

order that the Tariff meets FERC

comparability standards as set forth in

FERC Orders 888 and 888–A. Western

will make necessary changes in

response to the FERC declaratory order

and further comments and will then

publish the revised final Tariff in the

Federal Register.

II. Background

Western was established pursuant to

Section 302 of the Department of Energy

(DOE) Organization Act, Public Law 95–

91, dated August 4, 1977. Western is

generally a partial requirements power

supplier that markets and transmits

Federal electric power in 15 central and

western States encompassing a

geographic area of 3.38 million-squarekilometers (1.3 million-square-miles).

Western has four Regional Offices and

one Customer Service Center which

market and transmit power generated by

various Federal projects. Nothing in the

proposed Tariff is intended to alter,

amend, or abridge the statutory

obligations of Western to market Federal

power and to repay the Federal

investment in those Federal projects.

FERC issued a Notice of Proposed

Rulemaking (NOPR) for Open Access

Transmission Service, published at 60

FR 17662, on April 7, 1995. On October

4, 1995, the Secretary of the Department

of Energy (DOE) adopted a Power

Marketing Administration Open Access

Transmission Policy which stated that

DOE supported the spirit and intent of

the NOPR and directed the Power

Marketing Administrations to prepare

tariffs which would conform to the

principles set forth in the FERC’s final

rule. FERC issued its final rule, Order

888, published at 61 FR 21540 on May

10, 1996, and followed with Order 888–

A, published at 62 FR 12273, on March

14, 1997.

In early 1996, Western began

developing a Tariff Equivalent Package

(TEP) to comply with the Secretary’s

directive. A draft TEP, which was

designed as a Western-wide document

that would contain Region-specific rates

and charges, was completed in July

1996 and sent to Western’s electric

service customers, transmission-service

customers, and other interested parties

for review and comment. Western

accepted comments through November

1996.

After evaluating comments, Western

modified its original concept of

preparing a Western-wide TEP and

began developing Regional Open Access

Transmission Service Guidelines

(Regional Guidelines). These Regional

Guidelines contained service

agreements consistent with the specific

conditions applicable to each Region.

The resulting documents were sent to

electric service customers, transmission

customers, and other interested parties

for review and comment in April 1997.

The review period for those documents

ended in early June 1997. To date,

customer and interested party

participation has been conducted

informally.

Western will submit a single Tariff

document to FERC under a

nonjurisdictional docket and request a

declaratory order from FERC that the

Tariff meets the FERC comparability

standards as set forth in FERC Orders

888 and 888–A. Consistent with a single

FERC filing, Western decided to develop

and file this single Tariff with appended

schedules and attachments. Western’s

Tariff includes Attachment J, Provisions

Specific to the Transmission Provider,

and Attachment K, Authorities and

Obligations, which are specific to

Western and are not found in FERC

Order 888–A, Exhibit B, Pro Forma

Tariff.

III. Issues Raised During the

Development of This Proposed Tariff

Participants in the informal review

process raised numerous issues about

both versions of the draft documents.

The following discussion highlights the

more significant issues and Western’s

responses as incorporated into this

proposed Tariff.

A. Issue: There is concern that some

of Western’s Regional Offices may not

offer Network Integration Transmission

Service, hereafter called network

service, at this time. Some think that not

providing network service would

probably mean that the Tariff would be

of little value to all existing

transmission customers. They think this

would raise significant comparability

issues since the service Western

provides itself is network service.

Response: In most cases, the service

Western provides to its firm power

customers is not exactly network or

point-to-point service. Western will

offer network service subject to

available transfer capability determined

considering operating constraints,

facility limitations, and existing

contractual obligations.

B. Issue: Some of Western’s customers

have expressed concern that the

combination of the network service

provisions and the definitions provided

in Western’s Tariff result in

transmission being paid for both as part

of Western’s power rates and again

under Western’s Tariff. The Tariff does

not clearly describe how this would be

eliminated. A Western customer’s load

and/or resources should be reduced to

account for Western’s power contract

commitment to the customer. Similarly,

the definition of Network Customer

should include the possibility that a

Network Customer may also be a

Federal customer as defined in

Attachment K.

Response: FERC recognized that

existing power and transmission

arrangements represent a transitional

problem as customers begin to take

service under the Pro Forma Tariff.

FERC did not intend, nor does Western,

for a transmission provider to receive

two payments for providing service to

the same portion of a transmission

customer’s load. The current definition

of Network Customer does not exclude

the possibility that a Network Customer

may also be a Federal customer.

C. Issue: Some of Western’s customers

encouraged Western to reserve its

transmission capability to serve future

load growth needs of its customers,

including direct-service customers.

Some of Western’s firm power

customers also requested that Western
50574 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

identify its allocations to customers as

Native Load in the Tariff.

Response: Western’s customers with

point-to-point transmission service may

request increased reservations of pointto-point transmission to accommodate

specified amounts of anticipated load

growth of the customer. Where Western

is able to provide network service,

Western intends to meet anticipated

load growth; however, Western’s ability

to construct additional transmission

facilities to accommodate Network

Customer load growth may be limited

by appropriations or advance customer

funding. Western will adhere to the

transmission procedures set forth in its

final Tariff for all requests for

transmission service. Western has

defined firm power and project use

customers as Federal customers in

Attachment K to the Tariff and will treat

them in a manner analogous to the

treatment of Native Load Customers of

public utilities.

D. Issue: Why does Western require

advancement of funds?

Response: Under present legislation,

Western cannot use appropriated funds

to do work for others and is prohibited

from entering into contracts that

obligate it to spend funds it does not

have.

E. Issue: Western should be proposing

service only over Federal facilities.

Western should not allow stranded cost

recovery for non-Federal facilities.

Response: Each Western Regional

Office will design rates to include the

facilities used to provide transmission

service under the Tariff. The

transmission system description may be

modified in the Tariff to correspond

with results of some rate making

processes. The terms of the Tariff will

allow stranded cost recovery when

appropriate and consistent with

applicable Federal law.

F. Issue: Why cannot Western provide

service without a contract?

Response: Western believes that the

Pro Forma language, as modified in

Western’s Tariff, provides adequate

protection and is willing to provide

service without an executed Service

Agreement in accordance with the terms

of sections 1.45, 15.3 and 29.1. These

sections require the Transmission

customer to agree to abide by the Tariff

terms and the existing transmission

rates. The Transmission Customer may

also request resolution under the

provisions of Section 12, Dispute

Resolution, of the Tariff.

G. Issue: What process will Western

use for future changes to the Tariff?

Response: Western is providing notice

of this proposal and an opportunity to

comment. The proposal may then be

modified after considering the

comments received. Western will

submit the final Tariff to FERC under a

nonjurisdictional docket and request a

declaratory order from FERC that the

final Tariff meets FERC comparability

standards as set forth in FERC Orders

888 and 888–A. Interested parties will

have an opportunity to comment on the

Tariff by following appropriate

procedures to intervene with FERC.

Western will make necessary changes in

response to the FERC declaratory order

and further comments and will then

publish the final revised Tariff in the

Federal Register.

H. Issue: Some of Western’s customers

believe that Western has a statutory

obligation to deliver power to its firm

power customers and therefore, should

not they have a superior right? How will

Western address ‘‘comparability’’

issues?

Response: Service to be provided

under the Tariff will not conflict with

any of Western’s statutory obligations.

There will be no need to give Western’s

Federal customers a superior right to

transmission since adequate capacity

will be reserved for the long-term

delivery of the Federal power through

Western’s process in determining its

Available Transfer Capability (ATC),

which requires consideration of various

hydrological conditions and also

considers the possible integration of

thermal or other generation sources. If

there is additional capacity above

Western’s needs for use by others,

Western will make that capacity

available under the Tariff. This will

ensure adequate long-term transmission

capacity for Federal purposes as well as

allowing Western the ability to provide

comparable service to others.

I. Issue: Does Western intend that an

entity seeking transmission service

across the entire Western system would

need to have a service agreement with

each Western Regional Office and pay

individual rates for use of each office’s

system, leading to a pancaking of rates?

Response: More than one service

agreement may be needed if an entity

wants service across the transmission

facilities of more than one project.

Although a Regional Office may have

responsibility for more than one Project

Transmission System, each Project has

its own separate transmission system

and its own repayment obligation for

that specific system.

IV. Summary of Changes From the

FERC Pro Forma Tariff

Western’s proposed Tariff has 11

differences from the Pro Forma Tariff

that can be grouped into four major

categories: Preservation of Obligations,

FERC Jurisdictional Issues, Financial

Considerations, and Legal Issues.

A. Preservation of Obligations

i. Transmission Provider and

Transmission System

Western operates, manages, and has

repayment responsibilities for several

independent transmission systems. Each

system is managed as an independent

financial entity with discrete repayment

responsibilities under Federal statutes

authorizing the individual transmission

systems. A Service Agreement for use of

one system’s facilities and payment of

one system’s rate may not permit a

transmission customer to use the

facilities of another system. There is no

single Western-wide transmission

system or transmission rate. Each

system is described in Attachment K

(Authorities and Obligations) to the

proposed Tariff. The definitions of

Transmission Provider in Section 1.46

and Transmission System in Section

1.49 are modified to recognize the

independent nature of the transmission

facilities.

ii. Losses

Sections 15.7 and 28.5 of the Pro

Forma Tariff are modified to allow the

applicable transmission losses

percentages to be included in the

Region-specific Service Agreements.

Western’s Regional Offices frequently

modify transmission loss factors based

on actual system losses. Including losses

in the Service Agreement provides a

more efficient means of modifying

losses than modifying the Tariff.

Additionally, since Western has

developed a Western-wide Tariff

applicable to all Regional Offices,

including losses in the Service

Agreements is more appropriate.

iii. Federal Customers

Western markets generation to

customers that are entitled by law to

receive preference in the sale of Federal

power, as opposed to jurisdictional

public utilities that serve load

requirements in a geographical area.

Western will treat preference customers

in a manner analogous to Native Load

Customers of public utilities as defined

in the Pro Forma Tariff. Attachment K

defines these Federal Customers.

iv. Ancillary Services

Section 3 of the proposed Tariff is

modified to include the option for

Western to purchase Ancillary Services

and pass through such costs to the

Transmission Customer. Western’s

hydroelectric power facilities have

limited capability to provide some

Ancillary Services, due to variable
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50575

hydrological conditions and

environmental and operational

constraints. The existing long-term

hydrological capability is allocated and

under contract to Federal Customers in

accordance with the preference

provisions of Federal law.

B. FERC Jurisdictional Issues

Since Western is not a jurisdictional

public utility, the Tariff does not

include reference to FERC approval of

rates or service agreements. Western

does not file its rates or contracts under

Section 205 and Section 206 of the

Federal Power Act. Western’s rates are

developed pursuant to Federal law,

under public information and comment

procedures, that specify FERC’s role in

reviewing Power Marketing

Administration rates. Appropriate

modifications reflecting Western’s rate

setting process were made to Sections

1.10, 2.2, 9, 12.1, 13.3, 14.3, 20.3, 26, 27,

34, 34.5.

Western does not file executed service

agreements with FERC or seek FERC

approval to terminate service.

Appropriate modifications are made to

Sections 1.45, 7.3, 13.4, 14.4, 15.3, 17.6,

19.3, 19.4, 29.1, 29.5, 32.3, and 32.4 to

reflect Western’s status as a

nonjurisdictional utility.

C. Financial Considerations

i. Deposits for Transmission Service and

Interest

Western’s current financial system

and procedures make collecting and

refunding deposits unduly burdensome.

Western has replaced provisions for

collecting deposits with Completed

Applications and returning such

deposits with interest under certain

circumstances with language that allows

Western to assess a nondiscriminatory,

non-refundable application processing

fee for all Transmission Service

requests. The processing fee reflects an

average of staff wages and benefits

multiplied by the average time it takes

to analyze and respond to requests for

service. FERC has found in other

nonjurisdictional tariffs that such an

approach represents an administratively

simple alternative to the Pro Forma

language. Also, Western will not pay

interest on deposits for studies or

construction. Although Western may, by

contract, pay interest, Western cannot

earn interest on funds deposited into the

U.S. Treasury. Western has also

investigated escrow accounts at

commercial financial institutions and

found that administrative costs

generally exceeded interest payments.

Paying interest on deposits would result

in other ratepayers funding this

expense. Western does not believe this

is an equitable method and will not pay

interest. Appropriate modifications are

made to Sections 1.5, 17.3, 17.4, 17.6,

19.1, 19.4, 20.3, 22.2, 29.2, 32.1, 32.2,

and 32.4.

ii. Advance Payment

There are several sections in the Pro

Forma Tariff that require the

Transmission Provider to perform

activities with reimbursement by the

Transmission Customer. Except for

certain activities with other Federal

agencies, Western normally requires

advance of funds to perform work rather

than receiving a reimbursement.

Western is funded through

Congressional appropriations. The AntiDeficiency Act and other appropriations

laws generally prohibit Federal agencies

from expending funds without having

adequate funds in the Treasury and

from expending appropriations for

purposes other than those for which

Congress appropriated the funds.

Modifications are made to Sections 13.5,

15.4, 19.1, 19.2, 19.4, 19.8, 20.3, 23.2,

28.2, 31.5, 32.1, and 32.4.

iii. Net Billing and Bill Crediting

Western’s proposed Tariff uses the

Pro Forma Tariff language in Section 7

(Billing and Payment). In addition, two

provisions in Attachment J provide for

Net Billing and Bill Crediting. Net

Billing and Bill Crediting are two

alternative financing mechanisms that

Western has a long-standing history of

using. The Net Billing language

provides that charges for generation will

not be offset with transmission charges

without mutual agreement. To be as

consistent as possible with the Pro

Forma Tariff language, Western

included these Western-specific

provisions in Attachment J.

D. Legal Issues

Western has adopted the Force

Majeure language of the Pro Forma

Tariff. Western has added language

assuring that both parties to a contract

will provide each other with written

notice of any Force Majeure and

exercise due diligence in resolving the

problem. Western used the Pro Forma

Tariff language for Indemnification with

the addition of a sentence to reflect the

fact that Western’s liability is limited

under Federal law and is determined in

accordance with the Federal Tort Claims

Act. Appropriate modifications are

made to Section 10.

i. Dispute Resolution

Western modified the dispute

resolution provisions to recognize the

limits to Western’s statutory and

regulatory authority to submit disputes

to arbitration consistent with the

Administrative Dispute Resolution Act.

Appropriate modifications are made to

Section 12.

ii. Western-Specific Provisions

In Attachment J to the Tariff, Western

incorporated several provisions specific

to Western, as a Federal agency. Section

1, Change of Rates, provides for Western

to change rates under the Schedules in

accordance with appropriate rate

adjustment procedures and other

applicable Federal laws. This provision

also provides an option for transmission

customers to terminate service within

90 days after the effective date of a rate

change. This language is necessary

because Western does not file its rate

adjustments with FERC under the

Federal Power Act like jurisdictional

public utilities. FERC’s review of

Western’s rates is provided under a

different body of Federal law.

Section 2, Contingent Upon

Appropriations, is required by Federal

law to be included in Federal contracts

that will extend beyond the current

fiscal year. Section 3, Covenant Against

Contingent Fees; Section 4, Contract

Work Hours and Safety Standards;

Section 5, Equal Opportunity

Employment Practices; and Section 6,

Use of Convict Labor, are contract

sections that are required by Federal law

to be included in all Federal contracts.

Section 7, Independent System

Operator (ISO), recognizes that Western

is involved with the development of

several independent system operator

(ISO) organizations and that the final

Tariff may need modifications as a

result of a Western Regional Office

joining an ISO.

Section 8 provides that the final Tariff

does not grant any rights to any Third

Parties who are not a party to the

Service Agreement. Section 9, Entire

Agreement, provides that the Service

Agreement and Tariff are the entire

understanding between Western and the

Transmission Customer. Section 10,

Power Supply Obligations, provides that

Western is not obligated to supply

capacity and energy from Federal

generation sources during Interruptions

or Curtailments other than through the

provisions of Operating Reserve Service

and emergency power. Generally,

Federal generation is completely

allocated and under contract on a longterm basis to customers entitled to

preference under Federal law and may

not be available for support of

Transmission Service.

Section 11, Federal Law, provides that

the performance under the Tariff and

Service Agreement shall be governed by
50576 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

applicable Federal law. This avoids

disputes concerning state law and

Federal sovereignty. There may be other

sections of the Tariff where there may

be potential conflicts between laws

under which Western must operate and

FERC policy, such as Sections 27 and

31.2. Section 12, Continuing

Obligations, provides that obligations to

make payments survive termination of

the Service Agreement until satisfied.

Section 13, Net Billing, and Section 14,

Bill Crediting, are discussed above.

V. Coordination With Adoption of Open

Access Transmission Rates

Each of Western’s Regional Offices is

at a different point in the process of

developing Open Access Transmission

Rates. DOE approval of Western’s rates

is addressed in DOE Delegation Order

No. 0204–108. Western’s procedures for

public involvement for rate procedures

are covered in 10 CFR Part 903. Filing

requirements and procedures for FERC

review of Power Marketing

Administration rates are detailed in 18

CFR Part 300. Until the Regional Offices

complete the processes of placing longterm rates in effect for the services to be

provided under the open-access tariff,

they will use existing long-term rates

when applicable. Short-term rates may

be placed in effect by Western’s

Administrator and used when no rates

exist for such services. Once the longterm rates are in effect, they will

supersede the short-term rates.

The Sierra Nevada Region’s (SNR)

new rates for ancillary services and

transmission are proposed to become

effective October 1, 1997, and to be

effective for a 5-year period ending

September 30, 2002. The proposed rate

adjustment was initiated on May 5,

1996, and four informal customer

workshops were held. A Federal

Register notice was published on March

4, 1997 (62 FR 9763), officially

announcing the proposed rates,

initiating the public consultation and

comment period, and announcing the

public information and public comment

forums. The Federal Register notice was

sent to all Central Valley Project

preference customers and interested

parties, and a public information and a

public comment forum were held.

The Colorado River Storage Project

Customer Service Center (CRSP CSC) is

currently conducting a public process to

develop transmission and ancillary

service rates consistent with FERC

Orders 888 and 888–A to be used with

its Tariff. The public comment period

will conclude September 23, 1997. The

proposed effective date of the rates will

be April 1, 1998.

The Desert Southwest Region will

begin a formal public involvement

process in September 1997 to develop

transmission and ancillary service rates

consistent with FERC Orders 888 and

888-A to be used with the Tariff. The

proposed effective date of the rates will

be April 1, 1998.

The Upper Great Plains Region

(UGPR) has implemented short-term

Open Access Transmission Rates

approved by Western’s Administrator.

These transmission rates and ancillary

service rates became effective December

20, 1996, and will expire December 19,

1997. On March 28, 1997, by the

mailing of an Advance Announcement

of the transmission rate adjustment for

the Pick-Sloan Missouri Basin Program,

Eastern Division, a public process was

initiated to establish long-term Open

Access Transmission Rates for the

UGPR. UGPR has received comments

from that announcement and published

its proposal in September 1997. The

proposed effective date is February 1,

1998.

The Rocky Mountain Region (RMR)

will begin a formal public involvement

process in September 1997 to develop

transmission and ancillary service rates

consistent with FERC Orders 888 and

888–A to be used with the Tariff. The

proposed effective date of the rates will

be April 1, 1998.

Subsequent changes to Regional

Office Open Access Transmission rates

will be completed on a project-byproject basis using the public

involvement and FERC review processes

outlined above.

Review Under Executive Order 12866

Western has an exemption from

centralized regulatory review under

Executive Order 12866; accordingly, no

clearance of this notice by the Office of

Management and Budget (OMB) is

required.

Regulatory Flexibility Analysis

Pursuant to the Regulatory Flexibility

Act of 1980 (5 U.S.C. 601, et seq.), each

agency, when required by 5 U.S.C. 553

to publish a proposed rule, is further

required to prepare and make available

for public comment an initial regulatory

flexibility analysis to describe the

impact of the proposed rule on small

entities. The Acting Administrator for

Western certifies that Western’s

providing open transmission access

would not cause an adverse economic

impact on a substantial number of such

entities. Since the proposed open-access

tariff is of limited applicability, no

flexibility analysis is required.

Review Under the Paperwork Reduction

Act

In accordance with the Paperwork

Reduction Act of 1980, 44 U.S.C. 3501–

3520, Western has received approval

from OMB for the collection of

information in this rule under OMB

control number 1910–0100.

Review Under the National

Environmental Policy Act

Western will comply with the

National Environmental Policy Act of

1969 (42 U.S.C. 4321 et seq.), the

Council on Environmental Quality

Regulations (40 CFR Parts 1500–1508),

and the DOE NEPA Implementing

Procedures (10 CFR Part 1021) prior to

adopting the Tariff.

AVAILABILITY OF INFORMATION:

A redline/strikeout comparison of

Western’s proposed Tariff to the FERC

Pro Forma will be available from the

informational contacts listed previously

or on the Internet at http://

www.wapa.gov.

Dated: September 17, 1997.

Michael S. Hacskaylo,

Acting Administrator.

Table of Contents

Part I. Common Service Provisions

1 Definitions

1.1 Ancillary Services

1.2 Annual Transmission Costs

1.3 Application

1.4 Commission

1.5 Completed Application

1.6 Control Area

1.7 Curtailment

1.8 Delivering Party

1.9 Designated Agent

1.10 Direct Assignment Facilities

1.11 Eligible Customer

1.12 Facilities Study

1.13 Firm Point-To-Point Transmission

Service

1.14 Good Utility Practice

1.15 Interruption

1.16 Load Ratio Share

1.17 Load Shedding

1.18 Long-Term Firm Point-To-Point

Transmission Service

1.19 Native Load Customers

1.20 Network Customer

1.21 Network Integration Transmission

Service

1.22 Network Load

1.23 Network Operating Agreement

1.24 Network Operating Committee

1.25 Network Resource

1.26 Network Upgrades

1.27 Non-Firm Point-To-Point

Transmission Service

1.28 Open Access Same-Time

Information System

1.29 Part I

1.30 Part II

1.31 Part III

1.32 Parties

1.33 Point(s) of Delivery

1.34 Point(s) of Receipt
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50577

1.35 Point-To-Point Transmission Service

1.36 Power Purchaser

1.37 Receiving Party

1.38 Regional Transmission Group

1.39 Reserved Capacity

1.40 Service Agreement

1.41 Service Commencement Date

1.42 Short-Term Firm Point-To-Point

Transmission Service

1.43 System Impact Study

1.44 Third-Party Sale

1.45 Transmission Customer

1.46 Transmission Provider

1.47 Transmission Provider’s Monthly

Transmission System Peak

1.48 Transmission Service

1.49 Transmission System

2 Initial Allocation and Renewal

Procedures

2.1 Initial Allocation of Available

Transmission Capability

2.2 Reservation Priority For Existing Firm

Service Customers

3 Ancillary Services

3.1 Scheduling, System Control and

Dispatch Service

3.2 Reactive Supply and Voltage Control

from Generation Sources Service

3.3 Regulation and Frequency Response

Service

3.4 Energy Imbalance Service

3.5 Operating Reserve—Spinning Reserve

Service

3.6 Operating Reserve—Supplemental

Reserve Service

4 Open Access Same-Time Information

System (OASIS)

5 Local Furnishing Bonds

5.1 Transmission Providers That Own

Facilities Financed by Local Furnishing

Bonds

5.2 Alternative Procedures for Requesting

Transmission Service

6 Reciprocity

7 Billing and Payment

7.1 Billing Procedures

7.2 Interest on Unpaid Balances

7.3 Customer Default

8 Accounting for the Transmission

Provider’s Use of the Tariff

8.1 Transmission Revenues

8.2 Study Costs and Revenues

9 Regulatory Filings

10 Force Majeure and Indemnification

10.1 Force Majeure

10.2 Indemnification

11 Creditworthiness

12 Dispute Resolution Procedures

12.1 Internal Dispute Resolution

Procedures

12.2 Disputes

12.3 Rights Under The Federal Power Act

Part II. Point-To-Point Transmission Service

Preamble

13 Nature of Firm Point-To-Point

Transmission Service

13.1 Term

13.2 Reservation Priority

13.3 Use of Firm Transmission Service by

the Transmission Provider

13.4 Service Agreements

13.5 Transmission Customer Obligations

for Facility Additions or Redispatch

Costs

13.6 Curtailment of Firm Transmission

Service

13.7 Classification of Firm Transmission

Service

13.8 Scheduling of Firm Point-To-Point

Transmission Service

14 Nature of Non-Firm Point-To-Point

Transmission Service

14.1 Term

14.2 Reservation Priority

14.3 Use of Non-Firm Point-To-Point

Transmission Service by the

Transmission Provider

14.4 Service Agreements

14.5 Classification of Non-Firm Point-ToPoint Transmission Service

14.6 Scheduling of Non-Firm Point-ToPoint Transmission Service

14.7 Curtailment or Interruption of

Service

15 Service Availability

15.1 General Conditions

15.2 Determination of Available

Transmission Capability

15.3 Initiating Service in the Absence of

an Executed Service Agreement

15.4 Obligation to Provide Transmission

Service that Requires Expansion or

Modification of the Transmission System

15.5 Deferral of Service

15.6 Other Transmission Service

Schedules

15.7 Real Power Losses

16 Transmission Customer Responsibilities

16.1 Conditions Required of

Transmission Customers

16.2 Transmission Customer

Responsibility for Third-Party

Arrangements

17 Procedures for Arranging Firm Point-ToPoint Transmission Service

17.1 Application

17.2 Completed Application

17.3 Processing Fee

17.4 Notice of Deficient Application

17.5 Response to a Completed

Application

17.6 Execution of a Service Agreement

17.7 Extensions for Commencement of

Service

18 Procedures for Arranging Non-Firm

Point-To-Point Transmission Service

18.1 Application

18.2 Completed Application

18.3 Reservation of Non-Firm Point-ToPoint Transmission Service

18.4 Determination of Available

Transmission Capability

19 Additional Study Procedures For Firm

Point-To-Point Transmission Service

Requests

19.1 Notice of Need for System Impact

Study

19.2 System Impact Study Agreement and

Compensation

19.3 System Impact Study Procedures

19.4 Facilities Study Procedures

19.5 Facilities Study Modifications

19.6 Due Diligence in Completing New

Facilities

19.7 Partial Interim Service

19.8 Expedited Procedures for New

Facilities

20 Procedures if The Transmission Provider

is Unable to Complete New

Transmission Facilities for Firm PointTo-Point Transmission Service

20.1 Delays in Construction of New

Facilities

20.2 Alternatives to the Original Facility

Additions

20.3 Refund Obligation for Unfinished

Facility Additions

21 Provisions Relating to Transmission

Construction and Services on the

Systems of Other Utilities

21.1 Responsibility for Third-Party

System Additions

21.2 Coordination of Third-Party System

Additions

22 Changes in Service Specifications

22.1 Modifications On a Non-Firm Basis

22.2 Modifications On a Firm Basis

23 Sale or Assignment of Transmission

Service

23.1 Procedures for Assignment or

Transfer of Service

23.2 Limitations on Assignment or

Transfer of Service

23.3 Information on Assignment or

Transfer of Service

24 Metering and Power Factor Correction at

Receipt and Delivery Point(s)

24.1 Transmission Customer Obligations

24.2 Transmission Provider Access to

Metering Data

24.3 Power Factor

25 Compensation for Transmission Service

26 Stranded Cost Recovery

27 Compensation for New Facilities and

Redispatch Costs

Part III. Network Integration Transmission

Service

Preamble

28 Nature of Network Integration

Transmission Service

28.1 Scope of Service

28.2 Transmission Provider

Responsibilities

28.3 Network Integration Transmission

Service

28.4 Secondary Service

28.5 Real Power Losses

28.6 Restrictions on Use of Service

29 Initiating Service

29.1 Condition Precedent for Receiving

Service

29.2 Application Procedures

29.3 Technical Arrangements to be

Completed Prior to Commencement of

Service

29.4 Network Customer Facilities

29.5 This section is intentionally left

blank

30 Network Resources

30.1 Designation of Network Resources

30.2 Designation of New Network

Resources

30.3 Termination of Network Resources

30.4 Operation of Network Resources

30.5 Network Customer Redispatch

Obligation

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With The Transmission

Provider

30.7 Limitation on Designation of

Network Resources

30.8 Use of Interface Capacity by the

Network Customer

30.9 Network Customer Owned

Transmission Facilities

31 Designation of Network Load
50578 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

31.1 Network Load

31.2 New Network Loads Connected With

the Transmission Provider

31.3 Network Load Not Physically

Interconnected with the Transmission

Provider

31.4 New Interconnection Points

31.5 Changes in Service Requests

31.6 Annual Load and Resource

Information Updates

32 Additional Study Procedures For

Network Integration Transmission

Service Requests

32.1 Notice of Need for System Impact

Study

32.2 System Impact Study Agreement and

Compensation

32.3 System Impact Study Procedures

32.4 Facilities Study Procedures

33 Load Shedding and Curtailments

33.1 Procedures

33.2 Transmission Constraints

33.3 Cost Responsibility for Relieving

Transmission Constraints

33.4 Curtailments of Scheduled

Deliveries

33.5 Allocation of Curtailments

33.6 Load Shedding

33.7 System Reliability

34 Rates and Charges

34.1 Monthly Demand Charge

34.2 Determination of Network

Customer’s Monthly Network Load

34.3 Determination of Transmission

Provider’s Monthly Transmission System

Load

34.4 Redispatch Charge

34.5 Stranded Cost Recovery

35 Operating Arrangements

35.1 Operation under The Network

Operating Agreement

35.2 Network Operating Agreement

35.3 Network Operating Committee

Schedule 1

Scheduling, System Control and Dispatch

Service

Schedule 2

Reactive Supply and Voltage Control from

Generation Sources Service

Schedule 3

Regulation and Frequency Response

Service

Schedule 4

Energy Imbalance Service

Schedule 5

Operating Reserve—Spinning Reserve

Service

Schedule 6

Operating Reserve—Supplemental Reserve

Service

Schedule 7

Long-Term Firm and Short-Term Firm

Point-to-Point Transmission Service

Schedule 8

Non-Firm Point-to-Point Transmission

Service

Attachment A

Form of Service Agreement For Firm Pointto-Point Transmission Service

Attachment B

Form of Service Agreement For Non-Firm

Point-to-Point Transmission Service

Attachment C

Methodology to Assess Available

Transmission Capability

Attachment D

Methodology for Completing a System

Impact Study

Attachment E

Index of Point-to-Point Transmission

Service Customers

Attachment F

Service Agreement For Network Integration

Transmission Service

Attachment G

Network Operating Agreement

Attachment H

Annual Transmission Revenue

Requirement For Network Integration

Transmission Service

Attachment I

Index of Network Integration Transmission

Service Customers

Attachment J

Provisions Specific to the Transmission

Provider

Attachment K

Transmission Provider Authorities and

Obligations

I. Common Service Provisions

1 Definitions

1.1 Ancillary Services: Those services

that are necessary to support the

transmission of capacity and energy

from resources to loads while

maintaining reliable operation of the

Transmission Provider’s Transmission

System in accordance with Good

Utility Practice.

1.2 Annual Transmission Costs: The

total annual cost of the Transmission

System for purposes of Network

Integration Transmission Service shall

be the amount specified in

Attachment H until amended by the

Transmission Provider or modified by

the Commission, pursuant to Federal

Law.

1.3 Application: A request by an

Eligible Customer for transmission

service pursuant to the provisions of

the Tariff.

1.4 Commission: The Federal Energy

Regulatory Commission.

1.5 Completed Application: An

Application that satisfies all of the

information and other requirements of

the Tariff, including any required

application processing fee.

1.6 Control Area: An electric power

system or combination of electric

power systems to which a common

automatic generation control scheme

is applied in order to:

(1) Match, at all times, the power

output of the generators within the

electric power system(s) and

capacity and energy purchased from

entities outside the electric power

system(s), with the load within the

electric power system(s);

(2) Maintain scheduled interchange

with other Control Areas, within

the limits of Good Utility Practice;

(3) Maintain the frequency of the

electric power system(s) within

reasonable limits in accordance

with Good Utility Practice; and

(4) Provide sufficient generating

capacity to maintain operating

reserves in accordance with Good

Utility Practice.

1.7 Curtailment: A reduction in firm or

non-firm transmission service in

response to a transmission capacity

shortage as a result of system

reliability conditions.

1.8 Delivering Party: The entity

supplying capacity and energy to be

transmitted at Point(s) of Receipt.

1.9 Designated Agent: Any entity that

performs actions or functions on

behalf of the Transmission Provider,

an Eligible Customer, or the

Transmission Customer required

under the Tariff.

1.10 Direct Assignment Facilities:

Facilities or portions of facilities that

are constructed by the Transmission

Provider for the sole use/benefit of a

particular Transmission Customer

requesting service under the Tariff.

Direct Assignment Facilities shall be

specified in the Service Agreement

that governs service to the

Transmission Customer.

1.11 Eligible Customer: (i) Any electric

utility (including the Transmission

Provider and any power marketer),

Federal power marketing agency, or

any person generating electric energy

for sale for resale is an Eligible

Customer under the Tariff. Electric

energy sold or produced by such

entity may be electric energy

produced in the United States,

Canada or Mexico. However, with

respect to transmission service that

the Commission is prohibited from

ordering by Section 212(h) of the

Federal Power Act, such entity is

eligible only if the service is provided

pursuant to a state requirement that

the Transmission Provider offer the

unbundled transmission service, or

pursuant to a voluntary offer of such

service by the Transmission Provider.

(ii) Any retail customer taking

unbundled transmission service

pursuant to a state requirement that

the Transmission Provider offer the

transmission service, or pursuant to a

voluntary offer of such service by the

Transmission Provider, is an Eligible

Customer under the Tariff.

1.12 Facilities Study: An engineering

study conducted by the Transmission

Provider to determine the required

modifications to the Transmission

Provider’s Transmission System,

including the cost and scheduled

completion date for such

modifications, that will be required to

provide the requested transmission

service.
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50579

1.13 Firm Point-To-Point

Transmission Service: Transmission

Service under this Tariff that is

reserved and/or scheduled between

specified Points of Receipt and

Delivery pursuant to Part II of this

Tariff.

1.14 Good Utility Practice: Any of the

practices, methods and acts engaged

in or approved by a significant

portion of the electric utility industry

during the relevant time period, or

any of the practices, methods and acts

which, in the exercise of reasonable

judgment in light of the facts known

at the time the decision was made,

could have been expected to

accomplish the desired result at a

reasonable cost consistent with good

business practices, reliability, safety

and expedition. Good Utility Practice

is not intended to be limited to the

optimum practice, method, or act to

the exclusion of all others, but rather

to be acceptable practices, methods,

or acts generally accepted in the

region.

1.15 Interruption: A reduction in nonfirm transmission service due to

economic reasons pursuant to Section

14.7.

1.16 Load Ratio Share: Ratio of a

Transmission Customer’s Network

Load to the Transmission Provider’s

total load computed in accordance

with Sections 34.2 and 34.3 of the

Network Integration Transmission

Service under Part III of the Tariff and

calculated on a rolling twelve month

basis.

1.17 Load Shedding: The systematic

reduction of system demand by

temporarily decreasing load in

response to transmission system or

area capacity shortages, system

instability, or voltage control

considerations under Part III of the

Tariff.

1.18 Long-Term Firm Point-To-Point

Transmission Service: Firm Point-ToPoint Transmission Service under

Part II of the Tariff with a term of one

year or more.

1.19 Native Load Customers: The

wholesale and retail power customers

of the Transmission Provider on

whose behalf the Transmission

Provider, by statute, franchise,

regulatory requirement, or contract,

has undertaken an obligation to

construct and operate the

Transmission Provider’s system to

meet the reliable electric needs of

such customers.

1.20 Network Customer: An entity

receiving transmission service

pursuant to the terms of the

Transmission Provider’s Network

Integration Transmission Service

under Part III of the Tariff.

1.21 Network Integration Transmission

Service: The transmission service

provided under Part III of the Tariff.

1.22 Network Load: The load that a

Network Customer designates for

Network Integration Transmission

Service under Part III of the Tariff.

The Network Customer’s Network

Load shall include all load served by

the output of any Network Resources

designated by the Network Customer.

A Network Customer may elect to

designate less than its total load as

Network Load but may not designate

only part of the load at a discrete

Point of Delivery. Where a Eligible

Customer has elected not to designate

a particular load at discrete points of

delivery as Network Load, the Eligible

Customer is responsible for making

separate arrangements under Part II of

the Tariff for any Point-To-Point

Transmission Service that may be

necessary for such non-designated

load.

1.23 Network Operating Agreement:

An executed agreement that contains

the terms and conditions under which

the Network Customer shall operate

its facilities and the technical and

operational matters associated with

the implementation of Network

Integration Transmission Service

under Part III of the Tariff.

1.24 Network Operating Committee: A

group made up of representatives

from the Network Customer(s) and the

Transmission Provider established to

coordinate operating criteria and

other technical considerations

required for implementation of

Network Integration Transmission

Service under Part III of this Tariff.

1.25 Network Resource: Any

designated generating resource

owned, purchased, or leased by a

Network Customer under the Network

Integration Transmission Service

Tariff. Network Resources do not

include any resource, or any portion

thereof, that is committed for sale to

third parties or otherwise cannot be

called upon to meet the Network

Customer’s Network Load on a noninterruptible basis.

1.26 Network Upgrades: Modifications

or additions to transmission-related

facilities that are integrated with and

support the Transmission Provider’s

overall Transmission System for the

general benefit of all users of such

Transmission System.

1.27 Non-Firm Point-To-Point

Transmission Service: Point-To-Point

Transmission Service under the Tariff

that is reserved and scheduled on an

as-available basis and is subject to

Curtailment or Interruption as set

forth in Section 14.7 under Part II of

the Tariff. Non-Firm Point-To-Point

Transmission Service is available on a

stand-alone basis for periods ranging

from one hour to one month.

1.28 Open Access Same-Time

Information System (OASIS): The

information system and standards of

conduct contained in Part 37 of the

Commission’s regulations and all

additional requirements implemented

by subsequent Commission orders

dealing with OASIS.

1.29 Part I: Tariff Definitions and

Common Service Provisions

contained in Sections 2 through 12.

1.30 Part II: Tariff Sections 13 through

27 pertaining to Point-To-Point

Transmission Service in conjunction

with the applicable Common Service

Provisions of Part I and appropriate

Schedules and Attachments.

1.31 Part III: Tariff Sections 28 through

35 pertaining to Network Integration

Transmission Service in conjunction

with the applicable Common Service

Provisions of Part I and appropriate

Schedules and Attachments.

1.32 Parties: The Transmission

Provider and the Transmission

Customer receiving service under the

Tariff.

1.33 Point(s) of Delivery: Point(s) on

the Transmission Provider’s

Transmission System where capacity

and energy transmitted by the

Transmission Provider will be made

available to the Receiving Party under

Part II of the Tariff. The Point(s) of

Delivery shall be specified in the

Service Agreement for Long-Term

Firm Point-to-Point Transmission

Service.

1.34 Point(s) of Receipt: Point(s) of

interconnection on the Transmission

Provider’s Transmission System

where capacity and energy will be

made available to the Transmission

Provider by the Delivering Party

under Part II of the Tariff. The Point(s)

of Receipt shall be specified in the

Service Agreement for Long-Term

Firm Point-to-Point Transmission

Service.

1.35 Point-To-Point Transmission

Service: The reservation and

transmission of capacity and energy

on either a firm or non-firm basis from

the Point(s) of Receipt to the Point(s)

of Delivery under Part II of the Tariff.

1.36 Power Purchaser: The entity that

is purchasing the capacity and energy

to be transmitted under the Tariff.

1.37 Receiving Party: The entity

receiving the capacity and energy

transmitted by the Transmission

Provider to Point(s) of Delivery.
50580 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

1.38 Regional Transmission Group

(RTG): A voluntary organization of

transmission owners, transmission

users and other entities approved by

the Commission to efficiently

coordinate transmission planning

(and expansion), operation and use on

a regional (and interregional) basis.

1.39 Reserved Capacity: The maximum

amount of capacity and energy that

the Transmission Provider agrees to

transmit for the Transmission

Customer over the Transmission

Provider’s Transmission System

between the Point(s) of Receipt and

the Point(s) of Delivery under Part II

of the Tariff. Reserved Capacity shall

be expressed in terms of whole

megawatts on a sixty (60) minute

interval (commencing on the clock

hour) basis.

1.40 Service Agreement: The initial

agreement and any amendments or

supplements thereto entered into by

the Transmission Customer and the

Transmission Provider for service

under the Tariff.

1.41 Service Commencement Date:

The date the Transmission Provider

begins to provide service pursuant to

the terms of an executed Service

Agreement, or the date the

Transmission Provider begins to

provide service in accordance with

Section 15.3 or Section 29.1 under the

Tariff.

1.42 Short-Term Firm Point-To-Point

Transmission Service: Firm Point-ToPoint Transmission Service under

Part II of the Tariff with a term of less

than one year.

1.43 System Impact Study: An

assessment by the Transmission

Provider of (i) the adequacy of the

Transmission System to accommodate

a request for either Firm Point-ToPoint Transmission Service or

Network Integration Transmission

Service and (ii) whether any

additional costs may be incurred in

order to provide transmission service.

1.44 Third-Party Sale: Any sale for

resale in interstate commerce to a

Power Purchaser that is not

designated as part of Network Load

under the Network Integration

Transmission Service.

1.45 Transmission Customer: Any

Eligible Customer (or its Designated

Agent) that (i) executes a Service

Agreement, or (ii) requests in writing

that the Transmission Provider

provide transmission service without

a Service Agreement, pursuant to

section 15.3 of the Tariff. This term is

used in the Part I Common Service

Provisions to include customers

receiving transmission service under

Part II and Part III of this Tariff.

1.46 Transmission Provider: The

Regional Office of the Western Area

Power Administration (Western)

which owns, controls, or operates the

facilities used for the transmission of

electric energy in interstate commerce

and provides transmission service

under the Tariff with which the

Transmission Customer has

contracted to provide Transmission

Service (See Attachment K).

1.47 Transmission Provider’s Monthly

Transmission System Peak: The

maximum firm usage of the

Transmission Provider’s Transmission

System in a calendar month.

1.48 Transmission Service: Point-ToPoint Transmission Service provided

under Part II of the Tariff on a firm

and non-firm basis.

1.49 Transmission System: The

facilities owned, controlled or

operated by the Transmission

Provider that are used to provide

transmission service under Part II and

Part III of the Tariff and are defined

in Attachment K to the Tariff.

2 Initial Allocation and Renewal

Procedures

2.1 Initial Allocation of Available

Transmission Capability: For

purposes of determining whether

existing capability on the

Transmission Provider’s Transmission

System is adequate to accommodate a

request for firm service under this

Tariff, all Completed Applications for

new firm transmission service

received during the initial sixty (60)

day period commencing with the

effective date of the Tariff will be

deemed to have been filed

simultaneously. A lottery system

conducted by an independent party

shall be used to assign priorities for

Completed Applications filed

simultaneously. All Completed

Applications for firm transmission

service received after the initial sixty

(60) day period shall be assigned a

priority pursuant to Section 13.2.

2.2 Reservation Priority For Existing

Firm Service Customers: Existing firm

service customers (wholesale

requirements and transmission-only,

with a contract term of one-year or

more), have the right to continue to

take transmission service from the

Transmission Provider when the

contract expires, rolls over or is

renewed. This transmission

reservation priority is independent of

whether the existing customer

continues to purchase capacity and

energy from the Transmission

Provider or elects to purchase

capacity and energy from another

supplier. If at the end of the contract

term, the Transmission Provider’s

Transmission System cannot

accommodate all of the requests for

transmission service, the existing firm

service customer must agree to accept

a contract term at least equal to a

competing request by any new

Eligible Customer and to pay the

current rate for such service. This

transmission reservation priority for

existing firm service customers is an

ongoing right that may be exercised at

the end of all firm contract terms of

one-year or longer.

3 Ancillary Services

Ancillary Services are needed with

transmission service to maintain

reliability within and among the Control

Areas affected by the transmission

service. The Transmission Provider is

required to provide (or offer to arrange

with the local Control Area operator as

discussed below), and the Transmission

Customer is required to purchase, the

following Ancillary Services (i)

Scheduling, System Control and

Dispatch, and (ii) Reactive Supply and

Voltage Control from Generation

Sources.

The Transmission Provider is

required, to the extent possible, to offer

to provide (or offer to arrange with the

local Control Area operator as discussed

below) the following Ancillary Services

only to the Transmission Customer

serving load within the Transmission

Provider’s Control Area (i) Regulation

and Frequency Response, (ii) Energy

Imbalance, (iii) Operating Reserve—

Spinning, and (iv) Operating Reserve—

Supplemental. The Transmission

Customer serving load within the

Transmission Provider’s Control Area, is

required to acquire these Ancillary

Services, whether from the

Transmission Provider, from a third

party, or by self-supply. The

Transmission Customer may not decline

the Transmission Provider’s offer of

Ancillary Services unless it

demonstrates that it has acquired the

Ancillary Services from another source.

The Transmission Provider will offer to

provide the Transmission Customer

Ancillary Services only to the extent

surplus Federal generation is available

for such services. However, the

Transmission Provider may purchase

Ancillary Services from others on behalf

of the Transmission Customer under the

terms of an agreement separate from the

Service Agreement. The costs of such

purchases on behalf of a Transmission

Customer will be passed directly

through to that Transmission Customer.

The Transmission Customer must list in

its Application which Ancillary
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50581

Services it will purchase from the

Transmission Provider.

If the Transmission Provider is a

utility providing transmission service,

but is not a Control Area operator, it

may be unable to provide some or all of

the Ancillary Services. In this case, the

Transmission Provider can fulfill its

obligation to provide Ancillary Services

by acting as the Transmission

Customer’s agent to secure these

Ancillary Services from the Control

Area operator. The Transmission

Customer may elect to (i) have the

Transmission Provider act as its agent,

(ii) secure the Ancillary Services

directly from the Control Area operator,

or (iii) secure the Ancillary Services

(discussed in Schedules 3, 4, 5, and 6)

from a third party or by self-supply

when technically feasible.

The Transmission Provider shall

specify the rate treatment and all related

terms and conditions in the event of an

unauthorized use of Ancillary Services

by the Transmission Customer.

The specific Ancillary Services, prices

and/or compensation methods for each

are described on the Schedules that are

attached to and made a part of the

Tariff. Three principal requirements

apply to discounts for Ancillary

Services provided by the Transmission

Provider in conjunction with its

provision of transmission service as

follows: (1) Any offer of a discount

made by the Transmission Provider

must be announced to all Eligible

Customers solely by posting on the

OASIS, (2) any customer-initiated

requests for discounts (including

requests for use by one’s wholesale

merchant or an affiliate’s use) must

occur solely by posting on the OASIS,

and (3) once a discount is negotiated,

details must be immediately posted on

the OASIS. A discount agreed upon for

an Ancillary Service must be offered for

the same period to all Eligible

Customers on the Transmission

Provider’s system. Sections 3.1 through

3.6 below list the six Ancillary Services.

3.1 Scheduling, System Control and

Dispatch Service: The rates and/or

methodology are described in

Schedule 1.

3.2 Reactive Supply and Voltage

Control from Generation Sources

Service: The rates and/or

methodology are described in

Schedule 2.

3.3 Regulation and Frequency

Response Service: Where applicable

the rates and/or methodology are

described in Schedule 3.

3.4 Energy Imbalance Service: Where

applicable the rates and/or

methodology are described in

Schedule 4.

3.5 Operating Reserve—Spinning

Reserve Service: Where applicable the

rates and/or methodology are

described in Schedule 5.

3.6 Operating Reserve—Supplemental

Reserve Service: Where applicable the

rates and/or methodology are

described in Schedule 6.

4 Open Access Same-Time

Information System (OASIS)

Terms and conditions regarding Open

Access Same-Time Information System

and standards of conduct are set forth in

18 CFR 37 of the Commission’s

regulations (Open Access Same-Time

Information System and Standards of

Conduct for Public Utilities). In the

event available transmission capability

as posted on the OASIS is insufficient

to accommodate a request for firm

transmission service, additional studies

may be required as provided by this

Tariff pursuant to Sections 19 and 32.

5 Local Furnishing Bonds

5.1 Transmission Providers That Own

Facilities Financed by Local

Furnishing Bonds: This provision is

applicable only to Transmission

Providers that have financed facilities

for the local furnishing of electric

energy with tax-exempt bonds, as

described in Section 142(f) of the

Internal Revenue Code (‘‘local

furnishing bonds’’). Notwithstanding

any other provision of this Tariff, the

Transmission Provider shall not be

required to provide transmission

service to any Eligible Customer

pursuant to this Tariff if the provision

of such transmission service would

jeopardize the tax-exempt status of

any local furnishing bond(s) used to

finance the Transmission Provider’s

facilities that would be used in

providing such transmission service.

5.2 Alternative Procedures for

Requesting Transmission Service:

(i) If the Transmission Provider

determines that the provision of

transmission service requested by

an Eligible Customer would

jeopardize the tax-exempt status of

any local furnishing bond(s) used to

finance its facilities that would be

used in providing such

transmission service, it shall advise

the Eligible Customer within thirty

(30) days of receipt of the

Completed Application.

(ii) If the Eligible Customer thereafter

renews its request for the same

transmission service referred to in

(i) by tendering an application

under Section 211 of the Federal

Power Act, the Transmission

Provider, within ten (10) days of

receiving a copy of the Section 211

application, will waive its rights to

a request for service under Section

213(a) of the Federal Power Act and

to the issuance of a proposed order

under Section 212(c) of the Federal

Power Act. The Commission, upon

receipt of the Transmission

Provider’s waiver of its rights to a

request for service under Section

213(a) of the Federal Power Act and

to the issuance of a proposed order

under Section 212(c) of the Federal

Power Act, shall issue an order

under Section 211 of the Federal

Power Act. Upon issuance of the

order under Section 211 of the

Federal Power Act, the

Transmission Provider shall be

required to provide the requested

transmission service in accordance

with the terms and conditions of

this Tariff.

6 Reciprocity

A Transmission Customer receiving

transmission service under this Tariff

agrees to provide comparable

transmission service that it is capable of

providing to the Transmission Provider

on similar terms and conditions over

facilities used for the transmission of

electric energy owned, controlled or

operated by the Transmission Customer

and over facilities used for the

transmission of electric energy owned,

controlled or operated by the

Transmission Customer’s corporate

affiliates. A Transmission Customer that

is a member of a power pool or Regional

Transmission Group also agrees to

provide comparable transmission

service to the members of such power

pool and Regional Transmission Group

on similar terms and conditions over

facilities used for the transmission of

electric energy owned, controlled or

operated by the Transmission Customer

and over facilities used for the

transmission of electric energy owned,

controlled or operated by the

Transmission Customer’s corporate

affiliates.

This reciprocity requirement applies

not only to the Transmission Customer

that obtains transmission service under

the Tariff, but also to all parties to a

transaction that involves the use of

transmission service under the Tariff,

including the power seller, buyer and

any intermediary, such as a power

marketer. This reciprocity requirement

also applies to any Eligible Customer

that owns, controls or operates

transmission facilities that uses an

intermediary, such as a power marketer,

to request transmission service under

the Tariff. If the Transmission Customer

does not own, control or operate

transmission facilities, it must include
50582 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

in its Application a sworn statement of

one of its duly authorized officers or

other representatives that the purpose of

its Application is not to assist an

Eligible Customer to avoid the

requirements of this provision.

7 Billing and Payment

7.1 Billing Procedures: Within a

reasonable time after the first day of

each month, the Transmission

Provider shall submit an invoice to

the Transmission Customer for the

charges for all services furnished

under the Tariff during the preceding

month. The invoice shall be paid by

the Transmission Customer within

twenty (20) days of receipt. All

payments shall be made in

immediately available funds payable

to the Transmission Provider, or by

wire transfer to a bank named by the

Transmission Provider.

7.2 Interest on Unpaid Balances:

Interest on any unpaid amounts

(including amounts placed in escrow)

shall be calculated in accordance with

the methodology specified for interest

on refunds in the Commission’s

regulations at 18 CFR 35.19a(a)(2)(iii).

Interest on delinquent amounts shall

be calculated from the due date of the

bill to the date of payment. When

payments are made by mail, bills shall

be considered as having been paid on

the date of receipt by the

Transmission Provider.

7.3 Customer Default: In the event the

Transmission Customer fails, for any

reason other than a billing dispute as

described below, to make payment to

the Transmission Provider on or

before the due date as described

above, and such failure of payment is

not corrected within thirty (30)

calendar days after the Transmission

Provider notifies the Transmission

Customer to cure such failure, a

default by the Transmission Customer

shall be deemed to exist. Within the

same 30 calendar days after notice of

failure to make payment, the

Transmission Customer shall have the

right of appeal to the Administrator of

Western. The Transmission Provider

shall submit its recommendation to

the Administrator for review and

approval, but shall not terminate

service until the Administrator makes

a determination on the Transmission

Customer’s appeal. In the event of a

billing dispute between the

Transmission Provider and the

Transmission Customer, the

Transmission Provider will continue

to provide service under the Service

Agreement as long as the

Transmission Customer (i) continues

to make all payments not in dispute,

and (ii) pays into an independent

escrow account the portion of the

invoice in dispute, pending resolution

of such dispute. If the Transmission

Customer fails to meet these two

requirements for continuation of

service, then the Transmission

Provider may provide notice to the

Transmission Customer of its

intention to suspend service in sixty

(60) days, in accordance with

Commission policy.

8 Accounting for the Transmission

Provider’s Use of the Tariff

The Transmission Provider shall

record the following amounts, as

outlined below.

8.1 Transmission Revenues: Include in

a separate operating revenue account

or subaccount the revenues it receives

from Transmission Service when

making Third-Party Sales under Part

II of the Tariff.

8.2 Study Costs and Revenues: Include

in a separate transmission operating

expense account or subaccount, costs

properly chargeable to expense that

are incurred to perform any System

Impact Studies or Facilities Studies

which the Transmission Provider

conducts to determine if it must

construct new transmission facilities

or upgrades necessary for its own

uses, including making Third-Party

Sales under the Tariff; and include in

a separate operating revenue account

or subaccount the revenues received

for System Impact Studies or

Facilities Studies performed when

such amounts are separately stated

and identified in the Transmission

Customer’s billing under the Tariff.

9 Regulatory Filings

Nothing contained in the Tariff or any

Service Agreement shall be construed as

affecting in any way the ability of any

Party receiving service under the Tariff

to exercise its rights under the Federal

Power Act and pursuant to the

Commission’s rules and regulations

promulgated thereunder.

10 Force Majeure and Indemnification

10.1 Force Majeure: An event of Force

Majeure means any act of God, labor

disturbance, act of the public enemy,

war, insurrection, riot, fire, storm or

flood, explosion, breakage or accident

to machinery or equipment, any

Curtailment, order, regulation or

restriction imposed by governmental

military or lawfully established

civilian authorities, or any other cause

beyond a Party’s control. A Force

Majeure event does not include an act

of negligence or intentional

wrongdoing. Neither the

Transmission Provider nor the

Transmission Customer will be

considered in default as to any

obligation under this Tariff if

prevented from fulfilling the

obligation due to an event of Force

Majeure. However, a Party whose

performance under this Tariff is

hindered by an event of Force

Majeure shall make all reasonable

efforts to perform its obligations

under this Tariff. Either Party

rendered unable to fulfill any of its

obligations under the Service

Agreement by reason of an

uncontrollable force shall give prompt

written notice of such fact to the other

Party and shall exercise due diligence

to remove such inability with all

reasonable dispatch.

10.2 Indemnification: The

Transmission Customer shall at all

times indemnify, defend, and save the

Transmission Provider harmless from,

any and all damages, losses, claims,

including claims and actions relating

to injury to or death of any person or

damage to property, demands, suits,

recoveries, costs and expenses, court

costs, attorney fees, and all other

obligations by or to third parties,

arising out of or resulting from the

Transmission Provider’s performance

of its obligations under this Tariff on

behalf of the Transmission Customer,

except in cases of negligence or

intentional wrongdoing by the

Transmission Provider. The liability

of the Transmission Provider shall be

determined in accordance with the

provisions of the Federal Tort Claims

Act, as amended.

11 Creditworthiness

For the purpose of determining the

ability of the Transmission Customer to

meet its obligations related to service

hereunder, the Transmission Provider

may require reasonable credit review

procedures. This review shall be made

in accordance with standard

commercial practices.

In addition, the Transmission

Provider may require the Transmission

Customer to provide and maintain in

effect during the term of the Service

Agreement, an unconditional and

irrevocable letter of credit as security to

meet its responsibilities and obligations

under the Tariff, or an alternative form

of security proposed by the

Transmission Customer and acceptable

to the Transmission Provider and

consistent with commercial practices

established by the Uniform Commercial

Code that protects the Transmission

Provider against the risk of nonpayment.
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50583

12 Dispute Resolution Procedures

12.1 Internal Dispute Resolution

Procedures: Any dispute between a

Transmission Customer and the

Transmission Provider involving

transmission service under the Tariff

shall be referred to a designated

senior representative of the

Transmission Provider and a senior

representative of the Transmission

Customer for resolution on an

informal basis as promptly as

practicable.

12.2 Disputes: Any dispute regarding

service provided under the Service

Agreement will be resolved in a

manner consistent with the

Administrative Dispute Resolution

Act, as amended, subject to statutory

and regulatory limits on Western’s

authority to submit disputes to

arbitration.

12.3 Rights Under The Federal Power

Act: Nothing in this section shall

restrict the rights of any party to file

a Complaint with the Commission

under relevant provisions of the

Federal Power Act.

Part II. Point-To-Point Transmission

Service

Preamble

The Transmission Provider will

provide Firm and Non-Firm Point-ToPoint Transmission Service pursuant to

the applicable terms and conditions of

this Tariff. Point-To-Point Transmission

Service is for the receipt of capacity and

energy at designated Point(s) of Receipt

and the transmission of such capacity

and energy to designated Point(s) of

Delivery.

13 Nature of Firm Point-To-Point

Transmission Service

13.1 Term: The minimum term of Firm

Point-To-Point Transmission Service

shall be one day and the maximum

term shall be specified in the Service

Agreement.

13.2 Reservation Priority: Long-Term

Firm Point-To-Point Transmission

Service shall be available on a firstcome, first-served basis i.e., in the

chronological sequence in which each

Transmission Customer reserved

service. Reservations for Short-Term

Firm Point-To-Point Transmission

Service will be conditional based

upon the length of the requested

transaction. If the Transmission

System becomes oversubscribed,

requests for longer term service may

preempt requests for shorter term

service up to the following deadlines;

one day before the commencement of

daily service, one week before the

commencement of weekly service,

and one month before the

commencement of monthly service.

Before the conditional reservation

deadline, if available transmission

capability is insufficient to satisfy all

Applications, an Eligible Customer

with a reservation for shorter term

service has the right of first refusal to

match any longer term reservation

before losing its reservation priority.

A longer term competing request for

Short-Term Firm Point-To-Point

Transmission Service will be granted

if the Eligible Customer with the right

of first refusal does not agree to match

the competing request within 24

hours (or earlier if necessary to

comply with the scheduling deadlines

provided in Section 13.8) from being

notified by the Transmission Provider

of a longer-term competing request for

Short-Term Firm Point-To-Point

Transmission Service. After the

conditional reservation deadline,

service will commence pursuant to

the terms of Part II of the Tariff. Firm

Point-To-Point Transmission Service

will always have a reservation priority

over Non-Firm Point-To-Point

Transmission Service under the

Tariff. All Long-Term Firm Point-ToPoint Transmission Service will have

equal reservation priority with Native

Load Customers and Network

Customers. Reservation priorities for

existing firm service customers are

provided in Section 2.2.

13.3 Use of Firm Transmission Service

by the Transmission Provider: The

Transmission Provider will be subject

to the rates, terms and conditions of

Part II of the Tariff when making

Third-Party Sales under agreements

executed on or after November 25,

1997. The Transmission Provider will

maintain separate accounting,

pursuant to Section 8, for any use of

the Point-To-Point Transmission

Service to make Third-Party Sales.

13.4 Service Agreements: The

Transmission Provider shall offer a

standard form Firm Point-To-Point

Transmission Service Agreement

(Attachment A) to an Eligible

Customer when it submits a

Completed Application for Long-Term

Firm Point-To-Point Transmission

Service. The Transmission Provider

shall offer a standard form Firm Pointto-Point Transmission Service

Agreement (Attachment A) to an

Eligible Customer when it first

submits a Completed Application for

Short-Term Firm Point-to-Point

Transmission Service pursuant to the

Tariff.

13.5 Transmission Customer

Obligations for Facility Additions or

Redispatch Costs: In cases where the

Transmission Provider determines

that the Transmission System is not

capable of providing Firm Point-ToPoint Transmission Service without

(1) degrading or impairing the

reliability of service to Native Load

Customers, Network Customers and

other Transmission Customers taking

Firm Point-To-Point Transmission

Service, or (2) interfering with the

Transmission Provider’s ability to

meet prior firm contractual

commitments to others, the

Transmission Provider will be

obligated to expand or upgrade its

Transmission System pursuant to the

terms of Section 15.4. The

Transmission Customer must agree to

compensate the Transmission

Provider in advance for any necessary

transmission facility additions

pursuant to the terms of Section 27.

To the extent the Transmission

Provider can relieve any system

constraint more economically by

redispatching the Transmission

Provider’s resources than through

constructing Network Upgrades, it

shall do so, provided that the Eligible

Customer agrees to compensate the

Transmission Provider pursuant to

the terms of Section 27. Any

redispatch, Network Upgrade or

Direct Assignment Facilities costs to

be charged to the Transmission

Customer on an incremental basis

under the Tariff will be specified in

the Service Agreement or a separate

agreement, as appropriate, prior to

initiating service.

13.6 Curtailment of Firm Transmission

Service: In the event that a

Curtailment on the Transmission

Provider’s Transmission System, or a

portion thereof, is required to

maintain reliable operation of such

system, Curtailments will be made on

a non-discriminatory basis to the

transaction(s) that effectively relieve

the constraint. If multiple transactions

require Curtailment, to the extent

practicable and consistent with Good

Utility Practice, the Transmission

Provider will curtail service to

Network Customers and Transmission

Customers taking Firm Point-To-Point

Transmission Service on a basis

comparable to the curtailment of

service to the Transmission Provider’s

Native Load Customers. All

Curtailments will be made on a nondiscriminatory basis, however, NonFirm Point-To-Point Transmission

Service shall be subordinate to Firm

Transmission Service. When the

Transmission Provider determines

that an electrical emergency exists on

its Transmission System and
50584 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

implements emergency procedures to

Curtail Firm Transmission Service,

the Transmission Customer shall

make the required reductions upon

request of the Transmission Provider.

However, the Transmission Provider

reserves the right to Curtail, in whole

or in part, any Firm Transmission

Service provided under the Tariff

when, in the Transmission Provider’s

sole discretion, an emergency or other

unforeseen condition impairs or

degrades the reliability of its

Transmission System. The

Transmission Provider will notify all

affected Transmission Customers in a

timely manner of any scheduled

Curtailments.

13.7 Classification of Firm

Transmission Service:

(a) The Transmission Customer taking

Firm Point-To-Point Transmission

Service may (1) change its Receipt

and Delivery Points to obtain

service on a non-firm basis

consistent with the terms of Section

22.1 or (2) request a modification of

the Points of Receipt or Delivery on

a firm basis pursuant to the terms

of Section 22.2.

(b) The Transmission Customer may

purchase transmission service to

make sales of capacity and energy

from multiple generating units that

are on the Transmission Provider’s

Transmission System. For such a

purchase of transmission service,

the resources will be designated as

multiple Points of Receipt, unless

the multiple generating units are at

the same generating plant in which

case the units would be treated as

a single Point of Receipt.

(c) The Transmission Provider shall

provide firm deliveries of capacity

and energy from the Point(s) of

Receipt to the Point(s) of Delivery.

Each Point of Receipt at which firm

transmission capacity is reserved by

the Transmission Customer shall be

set forth in the Firm Point-To-Point

Service Agreement for Long-Term

Firm Transmission Service along

with a corresponding capacity

reservation associated with each

Point of Receipt. Points of Receipt

and corresponding capacity

reservations shall be as mutually

agreed upon by the Parties for

Short-Term Firm Transmission.

Each Point of Delivery at which

firm transmission capacity is

reserved by the Transmission

Customer shall be set forth in the

Firm Point-To-Point Service

Agreement for Long-Term Firm

Transmission Service along with a

corresponding capacity reservation

associated with each Point of

Delivery. Points of Delivery and

corresponding capacity reservations

shall be as mutually agreed upon by

the Parties for Short-Term Firm

Transmission. The greater of either

(1) the sum of the capacity

reservations at the Point(s) of

Receipt, or (2) the sum of the

capacity reservations at the Point(s)

of Delivery shall be the

Transmission Customer’s Reserved

Capacity. The Transmission

Customer will be billed for its

Reserved Capacity under the terms

of Schedule 7. The Transmission

Customer may not exceed its firm

capacity reserved at each Point of

Receipt and each Point of Delivery

except as otherwise specified in

Section 22. The Transmission

Provider shall specify the rate

treatment and all related terms and

conditions applicable in the event

that a Transmission Customer,

(including Third-Party Sales by the

Transmission Provider) exceeds its

firm reserved capacity at any Point

of Receipt or Point of Delivery.

13.8 Scheduling of Firm Point-ToPoint Transmission Service:

Schedules for the Transmission

Customer’s Firm Point-To-Point

Transmission Service must be

submitted to the Transmission

Provider no later than 10:00 a.m. [or

a reasonable time that is generally

accepted in the region and is

consistently adhered to by the

Transmission Provider] of the day

prior to commencement of such

service. Schedules submitted after

10:00 a.m. will be accommodated, if

practicable. Hour-to-hour schedules of

any capacity and energy that is to be

delivered must be stated in

increments of 1,000 kW per hour [or

a reasonable increment that is

generally accepted in the region and

is consistently adhered to by the

Transmission Provider]. Transmission

Customers within the Transmission

Provider’s service area with multiple

requests for Transmission Service at a

Point of Receipt, each of which is

under 1,000 kW per hour, may

consolidate their service requests at a

common point of receipt into units of

1,000 kW per hour for scheduling and

billing purposes. Scheduling changes

will be permitted up to twenty (20)

minutes [or a reasonable time that is

generally accepted in the region and

is consistently adhered to by the

Transmission Provider] before the

start of the next clock hour provided

that the Delivering Party and

Receiving Party also agree to the

schedule modification. The

Transmission Provider will furnish to

the Delivering Party’s system

operator, hour-to-hour schedules

equal to those furnished by the

Receiving Party (unless reduced for

losses) and shall deliver the capacity

and energy provided by such

schedules. Should the Transmission

Customer, Delivering Party or

Receiving Party revise or terminate

any schedule, such party shall

immediately notify the Transmission

Provider, and the Transmission

Provider shall have the right to adjust

accordingly the schedule for capacity

and energy to be received and to be

delivered.

14 Nature of Non-Firm Point-To-Point

Transmission Service

14.1 Term: Non-Firm Point-To-Point

Transmission Service will be

available for periods ranging from one

(1) hour to one (1) month. However,

a Purchaser of Non-Firm Point-ToPoint Transmission Service will be

entitled to reserve a sequential term of

service (such as a sequential monthly

term without having to wait for the

initial term to expire before requesting

another monthly term) so that the

total time period for which the

reservation applies is greater than one

month, subject to the requirements of

Section 18.3.

14.2 Reservation Priority: Non-Firm

Point-To-Point Transmission Service

shall be available from transmission

capability in excess of that needed for

reliable service to Native Load

Customers, Network Customers and

other Transmission Customers taking

Long-Term and Short-Term Firm

Point-To-Point Transmission Service.

A higher priority will be assigned to

reservations with a longer duration of

service. In the event the Transmission

System is constrained, competing

requests of equal duration will be

prioritized based on the highest price

offered by the Eligible Customer for

the Transmission Service. Eligible

Customers that have already reserved

shorter term service have the right of

first refusal to match any longer term

reservation before being preempted. A

longer term competing request for

Non-Firm Point-To-Point

Transmission Service will be granted

if the Eligible Customer with the right

of first refusal does not agree to match

the competing request: (a)

Immediately for hourly Non-Firm

Point-To-Point Transmission Service

after notification by the Transmission

Provider; and, (b) within 24 hours (or

earlier if necessary to comply with the

scheduling deadlines provided in

Section 14.6) for Non-Firm Point-To-
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50585

Point Transmission Service other than

hourly transactions after notification

by the Transmission Provider.

Transmission service for Network

Customers from resources other than

designated Network Resources will

have a higher priority than any NonFirm Point-To-Point Transmission

Service. Non-Firm Point-To-Point

Transmission Service over secondary

Point(s) of Receipt and Point(s) of

Delivery will have the lowest

reservation priority under the Tariff.

14.3 Use of Non-Firm Point-To-Point

Transmission Service by the

Transmission Provider: The

Transmission Provider will be subject

to the rates, terms and conditions of

Part II of the Tariff when making

Third-Party Sales under agreements

executed on or after November 25,

1997. The Transmission Provider will

maintain separate accounting,

pursuant to Section 8, for any use of

Non-Firm Point-To-Point

Transmission Service to make ThirdParty Sales.

14.4 Service Agreements: The

Transmission Provider shall offer a

standard form Non-Firm Point-ToPoint Transmission Service

Agreement (Attachment D) to an

Eligible Customer when it first

submits a Completed Application for

Non-Firm Point-To-Point

Transmission Service pursuant to the

Tariff.

14.5 Classification of Non-Firm PointTo-Point Transmission Service: NonFirm Point-To-Point Transmission

Service shall be offered under terms

and conditions contained in Part II of

the Tariff. The Transmission Provider

undertakes no obligation under the

Tariff to plan its Transmission System

in order to have sufficient capacity for

Non-Firm Point-To-Point

Transmission Service. Parties

requesting Non-Firm Point-To-Point

Transmission Service for the

transmission of firm power do so with

the full realization that such service is

subject to availability and to

Curtailment or Interruption under the

terms of the Tariff. The Transmission

Provider shall specify the rate

treatment and all related terms and

conditions applicable in the event

that a Transmission Customer

(including Third-Party Sales by the

Transmission Provider) exceeds its

non-firm capacity reservation. NonFirm Point-To-Point Transmission

Service shall include transmission of

energy on an hourly basis and

transmission of scheduled short-term

capacity and energy on a daily,

weekly or monthly basis, but not to

exceed one month’s reservation for

any one Application under Schedule

8.

14.6 Scheduling of Non-Firm PointTo-Point Transmission Service:

Schedules for Non-Firm Point-ToPoint Transmission Service must be

submitted to the Transmission

Provider no later than 2:00 p.m. [or a

reasonable time that is generally

accepted in the region and is

consistently adhered to by the

Transmission Provider] of the day

prior to commencement of such

service. Schedules submitted after

2:00 p.m. will be accommodated, if

practicable. Hour-to-hour schedules of

energy that are to be delivered must

be stated in increments of 1,000 kW

per hour [or a reasonable increment

that is generally accepted in the

region and is consistently adhered to

by the Transmission Provider].

Transmission Customers within the

Transmission Provider’s service area

with multiple requests for

Transmission Service at a Point of

Receipt, each of which is under 1,000

kW per hour, may consolidate their

schedules at a common Point of

Receipt into units of 1,000 kW per

hour. Scheduling changes will be

permitted up to twenty (20) minutes

[or a reasonable time that is generally

accepted in the region and is

consistently adhered to by the

Transmission Provider] before the

start of the next clock hour provided

that the Delivering Party and

Receiving Party also agree to the

schedule modification. The

Transmission Provider will furnish to

the Delivering Party’s system

operator, hour-to-hour schedules

equal to those furnished by the

Receiving Party (unless reduced for

losses) and shall deliver the capacity

and energy provided by such

schedules. Should the Transmission

Customer, Delivering Party or

Receiving Party revise or terminate

any schedule, such party shall

immediately notify the Transmission

Provider, and the Transmission

Provider shall have the right to adjust

accordingly the schedule for capacity

and energy to be received and to be

delivered.

14.7 Curtailment or Interruption of

Service: The Transmission Provider

reserves the right to Curtail, in whole

or in part, Non-Firm Point-To-Point

Transmission Service provided under

the Tariff for reliability reasons when,

an emergency or other unforeseen

condition threatens to impair or

degrade the reliability of its

Transmission System. The

Transmission Provider reserves the

right to Interrupt, in whole or in part,

Non-Firm Point-To-Point

Transmission Service provided under

the Tariff for economic reasons in

order to accommodate (1) a request for

Firm Transmission Service, (2) a

request for Non-Firm Point-To-Point

Transmission Service of greater

duration, (3) a request for Non-Firm

Point-To-Point Transmission Service

of equal duration with a higher price,

or (4) transmission service for

Network Customers from nondesignated resources. The

Transmission Provider also will

discontinue or reduce service to the

Transmission Customer to the extent

that deliveries for transmission are

discontinued or reduced at the

Point(s) of Receipt. Where required,

Curtailments or Interruptions will be

made on a non-discriminatory basis to

the transaction(s) that effectively

relieve the constraint, however, NonFirm Point-To-Point Transmission

Service shall be subordinate to Firm

Transmission Service. If multiple

transactions require Curtailment or

Interruption, to the extent practicable

and consistent with Good Utility

Practice, Curtailments or

Interruptions will be made to

transactions of the shortest term (e.g.,

hourly non-firm transactions will be

Curtailed or Interrupted before daily

non-firm transactions and daily nonfirm transactions will be Curtailed or

Interrupted before weekly non-firm

transactions). Transmission service

for Network Customers from resources

other than designated Network

Resources will have a higher priority

than any Non-Firm Point-To-Point

Transmission Service under the

Tariff. Non-Firm Point-To-Point

Transmission Service over secondary

Point(s) of Receipt and Point(s) of

Delivery will have a lower priority

than any Non-Firm Point-To-Point

Transmission Service under the

Tariff. The Transmission Provider

will provide advance notice of

Curtailment or Interruption where

such notice can be provided

consistent with Good Utility Practice.

15 Service Availability

15.1 General Conditions: The

Transmission Provider will provide

Firm and Non-Firm Point-To-Point

Transmission Service over, on or

across its Transmission System to any

Transmission Customer that has met

the requirements of Section 16.

15.2 Determination of Available

Transmission Capability: A

description of the Transmission

Provider’s specific methodology for

assessing available transmission

capability posted on the Transmission
50586 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

Provider’s OASIS (Section 4) is

contained in Attachment C of the

Tariff. In the event sufficient

transmission capability may not exist

to accommodate a service request, the

Transmission Provider will respond

by performing a System Impact Study.

15.3 Initiating Service in the Absence

of an Executed Service Agreement: If

the Transmission Provider and the

Transmission Customer requesting

Firm or Non-Firm Point-To-Point

Transmission Service cannot agree on

all the terms and conditions of the

Point-To-Point Service Agreement,

the Transmission Provider shall

commence providing Transmission

Service subject to the Transmission

Customer agreeing to (i) compensate

the Transmission Provider at the

existing rate placed in effect pursuant

to applicable Federal law and

regulations , and (ii) comply with the

terms and conditions of the Tariff

including paying the appropriate

processing fees in accordance with

the terms of Section 17.3. If the

Transmission Customer cannot accept

all of the terms and conditions of the

offered Service Agreement, the

Transmission Customer may request

resolution of the unacceptable terms

and conditions under Section 12,

Dispute Resolution Procedures, of the

Tariff. Any changes resulting from the

Dispute Resolution Procedures will be

effective upon the date of initial

service.

15.4 Obligation to Provide

Transmission Service that Requires

Expansion or Modification of the

Transmission System: If the

Transmission Provider determines

that it cannot accommodate a

Completed Application for Firm

Point-To-Point Transmission Service

because of insufficient capability on

its Transmission System, the

Transmission Provider will use due

diligence to expand or modify its

Transmission System to provide the

requested Firm Transmission Service,

provided the Transmission Customer

agrees to compensate the

Transmission Provider in advance for

such costs pursuant to the terms of

Section 27. The Transmission

Provider will conform to Good Utility

Practice in determining the need for

new facilities and in the design and

construction of such facilities. The

obligation applies only to those

facilities that the Transmission

Provider has the right to expand or

modify.

15.5 Deferral of Service: The

Transmission Provider may defer

providing service until it completes

construction of new transmission

facilities or upgrades needed to

provide Firm Point-To-Point

Transmission Service whenever the

Transmission Provider determines

that providing the requested service

would, without such new facilities or

upgrades, impair or degrade reliability

to any existing firm services.

15.6 Other Transmission Service

Schedules: Eligible Customers

receiving transmission service under

other agreements on file with the

Commission may continue to receive

transmission service under those

agreements until such time as those

agreements may be modified by the

Commission.

15.7 Real Power Losses: Real Power

Losses are associated with all

transmission service. The

Transmission Provider is not

obligated to provide Real Power

Losses. The Transmission Customer is

responsible for replacing losses

associated with all transmission

service as calculated by the

Transmission Provider. The

applicable Real Power Loss factors are

specified in the Service Agreements.

16 Transmission Customer

Responsibilities

16.1 Conditions Required of

Transmission Customers: Point-ToPoint Transmission Service shall be

provided by the Transmission

Provider only if the following

conditions are satisfied by the

Transmission Customer:

a. The Transmission Customer has

pending a Completed Application

for service;

b. The Transmission Customer meets

the creditworthiness criteria set

forth in Section 11;

c. The Transmission Customer will

have arrangements in place for any

other transmission service

necessary to effect the delivery from

the generating source to the

Transmission Provider prior to the

time service under Part II of the

Tariff commences;

d. The Transmission Customer agrees

to pay for any facilities constructed

and chargeable to such

Transmission Customer under Part

II of the Tariff, whether or not the

Transmission Customer takes

service for the full term of its

reservation; and

e. The Transmission Customer has

executed a Point-To-Point Service

Agreement or has agreed to receive

service pursuant to Section 15.3.

16.2 Transmission Customer

Responsibility for Third-Party

Arrangements: Any scheduling

arrangements that may be required by

other electric systems shall be the

responsibility of the Transmission

Customer requesting service. The

Transmission Customer shall provide,

unless waived by the Transmission

Provider, notification to the

Transmission Provider identifying

such systems and authorizing them to

schedule the capacity and energy to

be transmitted by the Transmission

Provider pursuant to Part II of the

Tariff on behalf of the Receiving Party

at the Point of Delivery or the

Delivering Party at the Point of

Receipt. However, the Transmission

Provider will undertake reasonable

efforts to assist the Transmission

Customer in making such

arrangements, including without

limitation, providing any information

or data required by such other electric

system pursuant to Good Utility

Practice.

17 Procedures for Arranging Firm

Point-To-Point Transmission Service

17.1 Application: A request for Firm

Point-To-Point Transmission Service

for periods of one year or longer must

contain a written Application to

appropriate Regional Office, as

identified in Attachment K to the

Tariff, at least sixty (60) days in

advance of the calendar month in

which service is to commence. The

Transmission Provider will consider

requests for such firm service on

shorter notice when feasible. Requests

for firm service for periods of less

than one year shall be subject to

expedited procedures that shall be

negotiated between the Parties within

the time constraints provided in

Section 17.5. All Firm Point-To-Point

Transmission Service requests should

be submitted by entering the

information listed below on the

Transmission Provider’s OASIS. Prior

to implementation of the

Transmission Provider’s OASIS, a

Completed Application may be

submitted by (i) transmitting the

required information to the

Transmission Provider by telefax, or

(ii) providing the information by

telephone over the Transmission

Provider’s time recorded telephone

line. Each of these methods will

provide a time-stamped record for

establishing the priority of the

Application.

17.2 Completed Application: A

Completed Application shall

provide all of the information

included in 18 CFR 2.20 including

but not limited to the following:

(i) The identity, address, telephone

number and facsimile number of

the entity requesting service;
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50587

(ii) A statement that the entity

requesting service is, or will be

upon commencement of service, an

Eligible Customer under the Tariff;

(iii) The location of the Point(s) of

Receipt and Point(s) of Delivery and

the identities of the Delivering

Parties and the Receiving Parties;

(iv) The location of the generating

facility(ies) supplying the capacity

and energy and the location of the

load ultimately served by the

capacity and energy transmitted.

The Transmission Provider will

treat this information as

confidential except to the extent

that disclosure of this information

is required by the Tariff, by

regulatory or judicial order, for

reliability purposes pursuant to

Good Utility Practice or pursuant to

RTG transmission information

sharing agreements. The

Transmission Provider shall treat

this information consistent with the

standards of conduct contained in

Part 37 of the Commission’s

regulations;

(v) A description of the supply

characteristics of the capacity and

energy to be delivered;

(vi) An estimate of the capacity and

energy expected to be delivered to

the Receiving Party;

(vii) The Service Commencement Date

and the term of the requested

Transmission Service;

(viii) The transmission capacity

requested for each Point of Receipt

and each Point of Delivery on the

Transmission Provider’s

Transmission System; customers

may combine their requests for

service in order to satisfy the

minimum transmission capacity

requirement;

The Transmission Provider shall treat

this information consistent with the

standards of conduct contained in Part

37 of the Commission’s regulations.

17.3 Processing Fee: A Completed

Application for Firm Point-To-Point

Transmission Service also shall

include a non-refundable processing

fee. Such fee shall be applicable to all

Transmission Customers for firm

Transmission Service requests of one

year or longer. Individual

Transmission Provider processing fees

will be calculated using the number of

estimated hours it will take to process

an application and will be set forth in

Attachment K. This fee does not apply

to costs to complete System Impact

Studies or Facility Studies or to add

new facilities.

17.4 Notice of Deficient Application: If

an Application fails to meet the

requirements of the Tariff, the

Transmission Provider shall notify the

entity requesting service within

fifteen (15) days of receipt of the

reasons for such failure. The

Transmission Provider will attempt to

remedy minor deficiencies in the

Application through informal

communications with the Eligible

Customer. If such efforts are

unsuccessful, the Transmission

Provider shall return the Application.

Upon receipt of a new or revised

Application that fully complies with

the requirements of Part II of the

Tariff, the Eligible Customer shall be

assigned a new priority consistent

with the date of the new or revised

Application.

17.5 Response to a Completed

Application: Following receipt of a

Completed Application for Firm

Point-To-Point Transmission Service,

the Transmission Provider shall make

a determination of available

transmission capability as required in

Section 15.2. The Transmission

Provider shall notify the Eligible

Customer as soon as practicable, but

not later than thirty (30) days after the

date of receipt of a Completed

Application either (i) if it will be able

to provide service without performing

a System Impact Study or (ii) if such

a study is needed to evaluate the

impact of the Application pursuant to

Section 19.1. Responses by the

Transmission Provider must be made

as soon as practicable to all completed

applications (including applications

by its own merchant function) and the

timing of such responses must be

made on a non-discriminatory basis.

17.6 Execution of a Service

Agreement: Whenever the

Transmission Provider determines

that a System Impact Study is not

required and that the service can be

provided, it shall notify the Eligible

Customer as soon as practicable but

no later than thirty (30) days after

receipt of the Completed Application.

Where a System Impact Study is

required, the provisions of Section 19

will govern the execution of a Service

Agreement. Failure of an Eligible

Customer to execute and return the

Service Agreement or request service

without an executed Service

Agreement pursuant to Section 15.3,

within fifteen (15) days after it is

tendered by the Transmission

Provider will be deemed a withdrawal

and termination of the Application.

Nothing herein limits the right of an

Eligible Customer to file another

Application after such withdrawal

and termination.

17.7 Extensions for Commencement of

Service: The Transmission Customer

can obtain up to five (5) one-year

extensions for the commencement of

service. The Transmission Customer

may postpone service by paying a

non-refundable annual reservation fee

equal to one-month’s charge for Firm

Transmission Service for each year or

fraction thereof. If during any

extension for the commencement of

service an Eligible Customer submits

a Completed Application for Firm

Transmission Service, and such

request can be satisfied only by

releasing all or part of the

Transmission Customer’s Reserved

Capacity, the original Reserved

Capacity will be released unless the

following condition is satisfied.

Within thirty (30) days, the original

Transmission Customer agrees to pay

the Firm Point-To-Point transmission

rate for its Reserved Capacity

concurrent with the new Service

Commencement Date. In the event the

Transmission Customer elects to

release the Reserved Capacity, the

reservation fees or portions thereof

previously paid will be forfeited.

18 Procedures for Arranging Non-Firm

Point-To-Point Transmission Service

18.1 Application: Eligible Customers

seeking Non-Firm Point-To-Point

Transmission Service must submit a

Completed Application to the

Transmission Provider. Applications

should be submitted by entering the

information listed below on the

Transmission Provider’s OASIS. Prior

to implementation of the

Transmission Provider’s OASIS, a

Completed Application may be

submitted by (i) transmitting the

required information to the

Transmission Provider by telefax, or

(ii) providing the information by

telephone over the Transmission

Provider’s time recorded telephone

line. Each of these methods will

provide a time-stamped record for

establishing the service priority of the

Application.

18.2 Completed Application: A

Completed Application shall provide

all of the information included in 18

CFR 2.20 including but not limited to

the following:

(i) The identity, address, telephone

number and facsimile number of

the entity requesting service;

(ii) A statement that the entity

requesting service is, or will be

upon commencement of service, an

Eligible Customer under the Tariff;

(iii) The Point(s) of Receipt and the

Point(s) of Delivery;

(iv) The maximum amount of capacity
50588 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

requested at each Point of Receipt

and Point of Delivery; and

(v) The proposed dates and hours for

initiating and terminating

transmission service hereunder.

In addition to the information

specified above, when required to

properly evaluate system

conditions, the Transmission

Provider also may ask the

Transmission Customer to provide

the following:

(vi) The electrical location of the

initial source of the power to be

transmitted pursuant to the

Transmission Customer’s request

for service;

(vii) The electrical location of the

ultimate load

The Transmission Provider will treat

this information in (vi) and (vii) as

confidential at the request of the

Transmission Customer except to the

extent that disclosure of this

information is required by this Tariff, by

Federal Law or regulatory or judicial

order, for reliability purposes pursuant

to Good Utility Practice, or pursuant to

RTG transmission information sharing

agreements. The Transmission Provider

shall treat this information consistent

with the standards of conduct contained

in Part 37 of the Commission’s

regulations.

18.3 Reservation of Non-Firm PointTo-Point Transmission Service:

Requests for monthly service shall be

submitted no earlier than sixty (60)

days before service is to commence;

requests for weekly service shall be

submitted no earlier than fourteen

(14) days before service is to

commence, requests for daily service

shall be submitted no earlier than two

(2) days before service is to

commence, and requests for hourly

service shall be submitted no earlier

than noon the day before service is to

commence. Requests for service

received later than 2:00 p.m. prior to

the day service is scheduled to

commence will be accommodated if

practicable [or such reasonable times

that are generally accepted in the

region and are consistently adhered to

by the Transmission Provider].

18.4 Determination of Available

Transmission Capability: Following

receipt of a tendered schedule the

Transmission Provider will make a

determination on a nondiscriminatory basis of available

transmission capability pursuant to

Section 15.2. Such determination

shall be made as soon as reasonably

practicable after receipt, but not later

than the following time periods for

the following terms of service (i)

thirty (30) minutes for hourly service,

(ii) thirty (30) minutes for daily

service, (iii) four (4) hours for weekly

service, and (iv) two (2) days for

monthly service. [Or such reasonable

times that are generally accepted in

the region and are consistently

adhered to by the Transmission

Provider].

19 Additional Study Procedures for

Firm Point-To-Point Transmission

Service Requests

19.1 Notice of Need for System Impact

Study: After receiving a request for

service, the Transmission Provider

shall determine on a nondiscriminatory basis whether a

System Impact Study is needed. A

description of the Transmission

Provider’s methodology for

completing a System Impact Study is

provided in Attachment D. If the

Transmission Provider determines

that a System Impact Study is

necessary to accommodate the

requested service, it shall so inform

the Eligible Customer, as soon as

practicable. In such cases, the

Transmission Provider shall within

thirty (30) days of receipt of a

Completed Application, tender a

System Impact Study Agreement

pursuant to which the Eligible

Customer shall agree to advance funds

to the Transmission Provider for

performing the required System

Impact Study. For a service request to

remain a Completed Application, the

Eligible Customer shall execute the

System Impact Study Agreement and

return it to the Transmission Provider

within fifteen (15) days. If the Eligible

Customer elects not to execute the

System Impact Study Agreement, its

application shall be deemed

withdrawn.

19.2 System Impact Study Agreement

and Compensation:

(i) The System Impact Study

Agreement will clearly specify the

Transmission Provider’s estimate of

the actual cost, and time for

completion of the System Impact

Study. The charge will not exceed

the actual cost of the study. In

performing the System Impact

Study, the Transmission Provider

shall rely, to the extent reasonably

practicable, on existing

transmission planning studies. The

Eligible Customer will not be

assessed a charge for such existing

studies; however, the Eligible

Customer will be responsible for

charges associated with any

modifications to existing planning

studies that are reasonably

necessary to evaluate the impact of

the Eligible Customer’s request for

service on the Transmission

System.

(ii) If in response to multiple Eligible

Customers requesting service in

relation to the same competitive

solicitation, a single System Impact

Study is sufficient for the

Transmission Provider to

accommodate the requests for

service, the costs of that study shall

be pro-rated among the Eligible

Customers.

(iii) For System Impact Studies that

the Transmission Provider conducts

on its own behalf, the Transmission

Provider shall record the cost of the

System Impact Studies pursuant to

Section 8.

19.3 System Impact Study Procedures:

Upon receipt of an executed System

Impact Study Agreement, the

Transmission Provider will use due

diligence to complete the required

System Impact Study within a sixty

(60) day period. The System Impact

Study shall identify any system

constraints and redispatch options,

additional Direct Assignment

Facilities or Network Upgrades

required to provide the requested

service. In the event that the

Transmission Provider is unable to

complete the required System Impact

Study within such time period, it

shall so notify the Eligible Customer

and provide an estimated completion

date along with an explanation of the

reasons why additional time is

required to complete the required

studies. A copy of the completed

System Impact Study and related

work papers shall be made available

to the Eligible Customer. The

Transmission Provider will use the

same due diligence in completing the

System Impact Study for an Eligible

Customer as it uses when completing

studies for itself. The Transmission

Provider shall notify the Eligible

Customer immediately upon

completion of the System Impact

Study if the Transmission System will

be adequate to accommodate all or

part of a request for service or that no

costs are likely to be incurred for new

transmission facilities or upgrades. In

order for a request to remain a

Completed Application, within fifteen

(15) days of completion of the System

Impact Study the Eligible Customer

must execute a Service Agreement or

request service without an executed

Service Agreement pursuant to

Section 15.3, or the Application shall

be deemed terminated and

withdrawn.

19.4 Facilities Study Procedures: If a

System Impact Study indicates that
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50589

additions or upgrades to the

Transmission System are needed to

supply the Eligible Customer’s service

request, the Transmission Provider,

within thirty (30) days of the

completion of the System Impact

Study, shall tender to the Eligible

Customer a Facilities Study

Agreement pursuant to which the

Eligible Customer shall agree to

advance funds to the Transmission

Provider for performing the required

Facilities Study. For a service request

to remain a Completed Application,

the Eligible Customer shall execute

the Facilities Study Agreement and

return it to the Transmission Provider

within fifteen (15) days. If the Eligible

Customer elects not to execute the

Facilities Study Agreement, its

application shall be deemed

withdrawn. Upon receipt of an

executed Facilities Study Agreement,

the Transmission Provider will use

due diligence to complete the

required Facilities Study within a

sixty (60) day period. If the

Transmission Provider is unable to

complete the Facilities Study in the

allotted time period, the Transmission

Provider shall notify the Transmission

Customer and provide an estimate of

the time needed to reach a final

determination along with an

explanation of the reasons that

additional time is required to

complete the study. When completed,

the Facilities Study will include a

good faith estimate of (i) the cost of

Direct Assignment Facilities to be

charged to the Transmission

Customer, (ii) the Transmission

Customer’s appropriate share of the

cost of any required Network

Upgrades as determined pursuant to

the provisions of Part II of the Tariff,

and (iii) the time required to complete

such construction and initiate the

requested service. The Transmission

Customer shall pay the Transmission

Provider in advance the Transmission

Customer’s share of the costs of new

facilities or upgrades. The

Transmission Customer shall have

thirty (30) days to execute a

construction agreement and a Service

Agreement and provide the advance

payment or request service without an

executed Service Agreement pursuant

to Section 15.3 and provide the

required letter of credit or other form

of security or the request will no

longer be a Completed Application

and shall be deemed terminated and

withdrawn.

19.5 Facilities Study Modifications:

Any change in design arising from

inability to site or construct facilities

as proposed will require development

of a revised good faith estimate. New

good faith estimates also will be

required in the event of new statutory

or regulatory requirements that are

effective before the completion of

construction or other circumstances

beyond the control of the

Transmission Provider that

significantly affect the final cost of

new facilities or upgrades to be

charged to the Transmission Customer

pursuant to the provisions of Part II of

the Tariff.

19.6 Due Diligence in Completing New

Facilities: The Transmission Provider

shall use due diligence to add

necessary facilities or upgrade its

Transmission System within a

reasonable time. The Transmission

Provider will not upgrade its existing

or planned Transmission System in

order to provide the requested Firm

Point-To-Point Transmission Service

if doing so would impair system

reliability or otherwise impair or

degrade existing firm service.

19.7 Partial Interim Service: If the

Transmission Provider determines

that it will not have adequate

transmission capability to satisfy the

full amount of a Completed

Application for Firm Point-To-Point

Transmission Service, the

Transmission Provider nonetheless

shall be obligated to offer and provide

the portion of the requested Firm

Point-To-Point Transmission Service

that can be accommodated without

addition of any facilities and through

redispatch. However, the

Transmission Provider shall not be

obligated to provide the incremental

amount of requested Firm Point-ToPoint Transmission Service that

requires the addition of facilities or

upgrades to the Transmission System

until such facilities or upgrades have

been placed in service.

19.8 Expedited Procedures for New

Facilities: In lieu of the procedures set

forth above, the Eligible Customer

shall have the option to expedite the

process by requesting the

Transmission Provider to tender at

one time, together with the results of

required studies, an ‘‘Expedited

Service Agreement’’ pursuant to

which the Eligible Customer would

agree to compensate the Transmission

Provider in advance for all costs

incurred pursuant to the terms of the

Tariff. In order to exercise this option,

the Eligible Customer shall request in

writing an expedited Service

Agreement covering all of the abovespecified items within thirty (30) days

of receiving the results of the System

Impact Study identifying needed

facility additions or upgrades or costs

incurred in providing the requested

service. While the Transmission

Provider agrees to provide the Eligible

Customer with its best estimate of the

new facility costs and other charges

that may be incurred, such estimate

shall not be binding and the Eligible

Customer must agree in writing to

compensate the Transmission

Provider in advance for all costs

incurred pursuant to the provisions of

the Tariff. The Eligible Customer shall

execute and return such an Expedited

Service Agreement within fifteen (15)

days of its receipt or the Eligible

Customer’s request for service will

cease to be a Completed Application

and will be deemed terminated and

withdrawn.

20 Procedures if the Transmission

Provider Is Unable To Complete New

Transmission Facilities for Firm PointTo-Point Transmission Service

20.1 Delays in Construction of New

Facilities: If any event occurs that will

materially affect the time for

completion of new facilities, or the

ability to complete them, the

Transmission Provider shall promptly

notify the Transmission Customer. In

such circumstances, the Transmission

Provider shall within thirty (30) days

of notifying the Transmission

Customer of such delays, convene a

technical meeting with the

Transmission Customer to evaluate

the alternatives available to the

Transmission Customer. The

Transmission Provider also shall

make available to the Transmission

Customer studies and work papers

related to the delay, including all

information that is in the possession

of the Transmission Provider that is

reasonably needed by the

Transmission Customer to evaluate

any alternatives.

20.2 Alternatives to the Original

Facility Additions: When the review

process of Section 20.1 determines

that one or more alternatives exist to

the originally planned construction

project, the Transmission Provider

shall present such alternatives for

consideration by the Transmission

Customer. If, upon review of any

alternatives, the Transmission

Customer desires to maintain its

Completed Application subject to

construction of the alternative

facilities, it may request the

Transmission Provider to submit a

revised Service Agreement for Firm

Point-To-Point Transmission Service.

If the alternative approach solely

involves Non-Firm Point-To-Point

Transmission Service, the
50590 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

Transmission Provider shall promptly

tender a Service Agreement for NonFirm Point-To-Point Transmission

Service providing for the service. In

the event the Transmission Provider

concludes that no reasonable

alternative exists and the

Transmission Customer disagrees, the

Transmission Customer may seek

relief under the dispute resolution

procedures pursuant to Section 12 or

it may refer the dispute to the

Commission for resolution.

20.3 Refund Obligation for Unfinished

Facility Additions: If the

Transmission Provider and the

Transmission Customer mutually

agree that no other reasonable

alternatives exist and the requested

service cannot be provided out of

existing capability under the

conditions of Part II of the Tariff, the

obligation to provide the requested

Firm Point-To-Point Transmission

Service shall terminate and any

advance payment made by the

Transmission Customer that is in

excess of the costs incurred by the

Transmission Provider through the

time construction was suspended

shall be returned. However, the

Transmission Customer shall be

responsible for all prudently incurred

costs by the Transmission Provider

through the time construction was

suspended.

21 Provisions Relating to Transmission

Construction and Services on the

Systems of Other Utilities

21.1 Responsibility for Third-Party

System Additions: The Transmission

Provider shall not be responsible for

making arrangements for any

necessary engineering, permitting,

and construction of transmission or

distribution facilities on the system(s)

of any other entity or for obtaining

any regulatory approval for such

facilities. The Transmission Provider

will undertake reasonable efforts to

assist the Transmission Customer in

obtaining such arrangements,

including without limitation,

providing any information or data

required by such other electric system

pursuant to Good Utility Practice.

21.2 Coordination of Third-Party

System Additions: In circumstances

where the need for transmission

facilities or upgrades is identified

pursuant to the provisions of Part II of

the Tariff, and if such upgrades

further require the addition of

transmission facilities on other

systems, the Transmission Provider

shall have the right to coordinate

construction on its own system with

the construction required by others.

The Transmission Provider, after

consultation with the Transmission

Customer and representatives of such

other systems, may defer construction

of its new transmission facilities, if

the new transmission facilities on

another system cannot be completed

in a timely manner. The Transmission

Provider shall notify the Transmission

Customer in writing of the basis for

any decision to defer construction and

the specific problems which must be

resolved before it will initiate or

resume construction of new facilities.

Within sixty (60) days of receiving

written notification by the

Transmission Provider of its intent to

defer construction pursuant to this

section, the Transmission Customer

may challenge the decision in

accordance with the dispute

resolution procedures pursuant to

Section 12 or it may refer the dispute

to the Commission for resolution.

22 Changes in Service Specifications

22.1 Modifications On a Non-Firm

Basis: The Transmission Customer

taking Firm Point-To-Point

Transmission Service may request

the Transmission Provider to

provide transmission service on a

non-firm basis over Receipt and

Delivery Points other than those

specified in the Service Agreement

(‘‘Secondary Receipt and Delivery

Points’’), in amounts not to exceed

its firm capacity reservation,

without incurring an additional

Non-Firm Point-To-Point

Transmission Service charge or

executing a new Service Agreement,

subject to the following conditions.

(a) Service provided over Secondary

Receipt and Delivery Points will be

non-firm only, on an as-available

basis and will not displace any firm

or non-firm service reserved or

scheduled by third-parties under

the Tariff or by the Transmission

Provider on behalf of its Native

Load Customers.

(b) The sum of all Firm and non-firm

Point-To-Point Transmission

Service provided to the

Transmission Customer at any time

pursuant to this section shall not

exceed the Reserved Capacity in the

relevant Service Agreement under

which such services are provided.

(c) The Transmission Customer shall

retain its right to schedule Firm

Point-To-Point Transmission

Service at the Receipt and Delivery

Points specified in the relevant

Service Agreement in the amount of

its original capacity reservation.

(d) Service over Secondary Receipt

and Delivery Points on a non-firm

basis shall not require the filing of

an Application for Non-Firm PointTo-Point Transmission Service

under the Tariff. However, all other

requirements of Part II of the Tariff

(except as to transmission rates)

shall apply to transmission service

on a non-firm basis over Secondary

Receipt and Delivery Points.

22.2 Modifications On a Firm Basis:

Any request by a Transmission

Customer to modify Receipt and

Delivery Points on a firm basis shall

be treated as a new request for service

in accordance with Section 17 hereof

except that such Transmission

Customer shall not be obligated to pay

any additional application processing

fee if the capacity reservation does not

exceed the amount reserved in the

existing Service Agreement. While

such new request is pending, the

Transmission Customer shall retain

its priority for service at the existing

firm Receipt and Delivery Points

specified in its Service Agreement.

23 Sale or Assignment of Transmission

Service

23.1 Procedures for Assignment or

Transfer of Service: Subject to

Commission approval of any

necessary filings, a Transmission

Customer may sell, assign, or transfer

all or a portion of its rights under its

Service Agreement, but only to

another Eligible Customer (the

Assignee). The Transmission

Customer that sells, assigns or

transfers its rights under its Service

Agreement is hereafter referred to as

the Reseller. Compensation to the

Reseller shall not exceed the higher of

(i) the original rate paid by the

Reseller, (ii) the Transmission

Provider’s maximum rate on file at the

time of the assignment, or (iii) the

Reseller’s opportunity cost capped at

the Transmission Provider’s cost of

expansion. If the Assignee does not

request any change in the Point(s) of

Receipt or the Point(s) of Delivery, or

a change in any other term or

condition set forth in the original

Service Agreement, the Assignee will

receive the same services as did the

Reseller and the priority of service for

the Assignee will be the same as that

of the Reseller. A Reseller should

notify the Transmission Provider as

soon as possible after any assignment

or transfer of service occurs but in any

event, notification must be provided

prior to any provision of service to the

Assignee. The Assignee will be

subject to all terms and conditions of

the Tariff. If the Assignee requests a

change in service, the reservation

priority of service will be determined
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50591

by the Transmission Provider

pursuant to Section 13.2.

23.2 Limitations on Assignment or

Transfer of Service: If the Assignee

requests a change in the Point(s) of

Receipt or Point(s) of Delivery, or a

change in any other specifications set

forth in the original Service

Agreement, the Transmission

Provider will consent to such change

subject to the provisions of the Tariff,

provided that the change will not

impair the operation and reliability of

the Transmission Provider’s

generation, transmission, or

distribution systems. The Assignee

shall compensate the Transmission

Provider in advance for performing

any System Impact Study needed to

evaluate the capability of the

Transmission System to accommodate

the proposed change and any

additional costs resulting from such

change. The Reseller shall remain

liable for the performance of all

obligations under the Service

Agreement, except as specifically

agreed to by the Parties through an

amendment to the Service Agreement.

23.3 Information on Assignment or

Transfer of Service: In accordance

with Section 4, Resellers may use the

Transmission Provider’s OASIS to

post transmission capacity available

for resale.

24 Metering and Power Factor

Correction at Receipt and Delivery

Point(s)

24.1 Transmission Customer

Obligations: Unless otherwise agreed,

the Transmission Customer shall be

responsible for installing and

maintaining compatible metering and

communications equipment to

accurately account for the capacity

and energy being transmitted under

Part II of the Tariff and to

communicate the information to the

Transmission Provider. Such

equipment shall remain the property

of the Transmission Customer.

24.2 Transmission Provider Access to

Metering Data: The Transmission

Provider shall have access to metering

data, which may reasonably be

required to facilitate measurements

and billing under the Service

Agreement.

24.3 Power Factor: Unless otherwise

agreed, the Transmission Customer is

required to maintain a power factor

within the same range as the

Transmission Provider pursuant to

Good Utility Practices. The power

factor requirements are specified in

the Service Agreement where

applicable.

25 Compensation for Transmission

Service

Rates for Firm and Non-Firm PointTo-Point Transmission Service are

provided in the Schedules appended to

the Tariff: Firm Point-To-Point

Transmission Service (Schedule 7); and

Non-Firm Point-To-Point Transmission

Service (Schedule 8). The Transmission

Provider shall use Part II of the Tariff to

make its Third-Party Sales. The

Transmission Provider shall account for

such use at the applicable Tariff rates,

pursuant to Section 8.

26 Stranded Cost Recovery

The Transmission Provider may seek

to recover stranded costs from the

Transmission Customer in a manner

consistent with applicable Federal law

and regulations.

27 Compensation for New Facilities

and Redispatch Costs

Whenever a System Impact Study

performed by the Transmission Provider

in connection with the provision of

Firm Point-To-Point Transmission

Service identifies the need for new

facilities, the Transmission Customer

shall be responsible for such costs to the

extent consistent with Commission

policy. Whenever a System Impact

Study performed by the Transmission

Provider identifies capacity constraints

that may be relieved more economically

by redispatching the Transmission

Provider’s resources than by building

new facilities or upgrading existing

facilities to eliminate such constraints,

the Transmission Customer shall be

responsible for the redispatch costs to

the extent consistent with Commission

policy.

Part III. Network Integration

Transmission Service

Preamble

The Transmission Provider will

provide Network Integration

Transmission Service pursuant to the

applicable terms and conditions

contained in the Tariff and Service

Agreement. Network Integration

Transmission Service allows the

Network Customer to integrate,

economically dispatch and regulate its

current and planned Network Resources

to serve its Network Load in a manner

comparable to that in which the

Transmission Provider utilizes its

Transmission System to serve its Native

Load Customers. Network Integration

Transmission Service also may be used

by the Network Customer to deliver

economy energy purchases to its

Network Load from non-designated

resources on an as-available basis

without additional charge. Transmission

service for sales to non-designated loads

will be provided pursuant to the

applicable terms and conditions of Part

II of the Tariff.

28 Nature of Network Integration

Transmission Service

28.1 Scope of Service: Network

Integration Transmission Service is a

transmission service that allows

Network Customers to efficiently and

economically utilize their Network

Resources (as well as other nondesignated generation resources) to

serve their Network Load located in

the Transmission Provider’s Control

Area and any additional load that may

be designated pursuant to Section

31.3 of the Tariff. The Network

Customer taking Network Integration

Transmission Service must obtain or

provide Ancillary Services pursuant

to Section 3.

28.2 Transmission Provider

Responsibilities: The Transmission

Provider will plan, construct, operate

and maintain its Transmission System

in accordance with Good Utility

Practice in order to provide the

Network Customer with Network

Integration Transmission Service over

the Transmission Provider’s

Transmission System. The

Transmission Provider, on behalf of

its Native Load Customers, shall be

required to designate resources and

loads in the same manner as any

Network Customer under Part III of

the Tariff. This information must be

consistent with the information used

by the Transmission Provider to

calculate available transmission

capability. The Transmission Provider

shall include the Network Customer’s

Network Load in its Transmission

System planning and shall, consistent

with Good Utility Practice, endeavor

to construct and place into service

sufficient transmission capacity to

deliver the Network Customer’s

Network Resources to serve its

Network Load on a basis comparable

to the Transmission Provider’s

delivery of its own generating and

purchased resources to its Native

Load Customers. This obligation to

construct and place into service

sufficient capacity to deliver the

Network Customer’s Network

Resources to serve its Network Load

is contingent upon the availability to

Western of sufficient appropriations,

when needed, and the Transmission

Customer’s advanced funds.

28.3 Network Integration Transmission

Service: The Transmission Provider

will provide firm transmission service

over its Transmission System to the
50592 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

Network Customer for the delivery of

capacity and energy from its

designated Network Resources to

service its Network Loads on a basis

that is comparable to the

Transmission Provider’s use of the

Transmission System to reliably serve

its Native Load Customers.

28.4 Secondary Service: The Network

Customer may use the Transmission

Provider’s Transmission System to

deliver energy to its Network Loads

from resources that have not been

designated as Network Resources.

Such energy shall be transmitted, on

an as-available basis, at no additional

charge. Deliveries from resources

other than Network Resources will

have a higher priority than any NonFirm Point-To-Point Transmission

Service under Part II of the Tariff.

28.5 Real Power Losses: Real Power

Losses are associated with all

transmission service. The

Transmission Provider is not

obligated to provide Real Power

Losses. The Network Customer is

responsible for replacing losses

associated with all transmission

service as calculated by the

Transmission Provider. The

applicable Real Power Loss factors are

specified in the Service Agreements.

28.6 Restrictions on Use of Service:

The Network Customer shall not use

Network Integration Transmission

Service for (i) sales of capacity and

energy to non-designated loads, or (ii)

direct or indirect provision of

transmission service by the Network

Customer to third parties. All

Network Customers taking Network

Integration Transmission Service shall

use Point-To-Point Transmission

Service under Part II of the Tariff for

any Third-Party Sale which requires

use of the Transmission Provider’s

Transmission System.

29 Initiating Service

29.1 Condition Precedent for

Receiving Service: Subject to the

terms and conditions of Part III of the

Tariff, the Transmission Provider will

provide Network Integration

Transmission Service to any Eligible

Customer provided that (i) the Eligible

Customer completes an Application

for service as provided under Part III

of the Tariff, (ii) the Eligible Customer

and the Transmission Provider

complete the technical arrangements

set forth in Sections 29.3 and 29.4,

(iii) the Eligible Customer executes a

Service Agreement pursuant to

Attachment F for service under Part

III of the Tariff or requests in writing

that the Transmission Provider

provide service without an executed

Service Agreement, and (iv) the

Eligible Customer executes a Network

Operating Agreement with the

Transmission Provider pursuant to

Attachment G. If the Transmission

Provider and the Network Customer

cannot agree on all the terms and

conditions of the Network Service

Agreement, the Transmission

Provider shall commence providing

Network Integration Transmission

Service subject to the Network

Customer agreeing to (i) compensate

the Transmission Provider at the

existing rate placed in effect pursuant

to applicable Federal law and

regulations, and (ii) comply with the

terms and conditions of the Tariff

including paying the appropriate

processing fees in accordance with

the terms of Section 29.2. If the

Network Customer cannot accept all

of the terms and conditions of the

offered Service Agreement, the

Network Customer may request

resolution of the unacceptable terms

and conditions under Section 12,

Dispute Resolution Procedures, of the

Tariff. Any changes resulting from the

Dispute Resolution Procedures will be

effective upon the date of initial

service.

29.2 Application Procedures: An

Eligible Customer requesting service

under Part III of the Tariff must

submit an Application to the

Transmission Provider as far as

possible in advance of the month in

which service is to commence. Unless

subject to the procedures in Section 2,

Completed Applications for Network

Integration Transmission Service will

be assigned a priority according to the

date and time the Application is

received, with the earliest Application

receiving the highest priority.

Applications should be submitted by

entering the information listed below

on the Transmission Provider’s

OASIS. Prior to implementation of the

Transmission Provider’s OASIS, a

Completed Application may be

submitted by (i) transmitting the

required information to the

Transmission Provider by telefax, or

(ii) providing the information by

telephone over the Transmission

Provider’s time recorded telephone

line. Each of these methods will

provide a time-stamped record for

establishing the service priority of the

Application. A Completed

Application for Network Integration

Transmission Service also shall

include a non-refundable processing

fee. Such fee shall be applicable to all

Transmission Customers for firm

Transmission Service requests of one

year or longer. Individual

Transmission Provider processing fees

will be calculated using the number of

estimated hours it will take to process

an application and will be set forth in

Attachment K. This fee does not apply

to costs to complete System Impact

Studies or Facility Studies or to add

new facilities. A Completed

Application shall provide all of the

information included in 18 CFR 2.20

including but not limited to the

following:

(i) The identity, address, telephone

number and facsimile number of

the party requesting service;

(ii) A statement that the party

requesting service is, or will be

upon commencement of service, an

Eligible Customer under the Tariff;

(iii) A description of the Network

Load at each delivery point. This

description should separately

identify and provide the Eligible

Customer’s best estimate of the total

loads to be served at each

transmission voltage level, and the

loads to be served from each

Transmission Provider substation at

the same transmission voltage level.

The description should include a

ten (10) year forecast of summer

and winter load and resource

requirements beginning with the

first year after the service is

scheduled to commence;

(iv) The amount and location of any

interruptible loads included in the

Network Load. This shall include

the summer and winter capacity

requirements for each interruptible

load (had such load not been

interruptible), that portion of the

load subject to interruption, the

conditions under which an

interruption can be implemented

and any limitations on the amount

and frequency of interruptions. An

Eligible Customer should identify

the amount of interruptible

customer load (if any), included in

the 10 year load forecast provided

in response to (iii) above;

(v) A description of Network

Resources (current and 10-year

projection), which shall include, for

each Network Resource:

—Unit size and amount of capacity from

that unit to be designated as Network

Resource

—VAR capability (both leading and

lagging), of all generators

—Operating restrictions

—Any periods of restricted operations

throughout the year

—Maintenance schedules

—Minimum loading level of unit

—Normal operating level of unit
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50593

—Any must-run unit designations

required for system reliability or

contract reasons

—Approximate variable generating cost

($/MWH) for redispatch computations

—Arrangements governing sale and

delivery of power to third parties from

generating facilities located in the

Transmission Provider Control Area,

where only a portion of unit output is

designated as a Network Resource

—Description of purchased power

designated as a Network Resource

including source of supply, Control

Area location, transmission

arrangements and delivery point(s) to

the Transmission Provider’s

Transmission System;

(vi) Description of Eligible

Customer’s transmission system:

—Load flow and stability data, such as

real and reactive parts of the load,

lines, transformers, reactive devices

and load type, including normal and

emergency ratings of all transmission

equipment in a load flow format

compatible with that used by the

Transmission Provider

—Operating restrictions needed for

reliability

—Operating guides employed by system

operators

—Contractual restrictions or committed

uses of the Eligible Customer’s

transmission system, other than the

Eligible Customer’s Network Loads

and Resources

—Location of Network Resources

described in subsection (v) above

—10 year projection of system

expansions or upgrades

—Transmission System maps that

include any proposed expansions or

upgrades

—Thermal ratings of Eligible Customer’s

Control Area ties with other Control

Areas;

(vii) Service Commencement Date

and the term of the requested

Network Integration Transmission

Service. The minimum term for

Network Integration Transmission

Service is one year;

Unless the Parties agree to a different

time frame, the Transmission Provider

must acknowledge the request within

ten (10) days of receipt. The

acknowledgment must include a date by

which a response, including a Service

Agreement, will be sent to the Eligible

Customer. If an Application fails to meet

the requirements of this section, the

Transmission Provider shall notify the

Eligible Customer requesting service

within fifteen (15) days of receipt and

specify the reasons for such failure.

Wherever possible, the Transmission

Provider will attempt to remedy

deficiencies in the Application through

informal communications with the

Eligible Customer. If such efforts are

unsuccessful, the Transmission Provider

shall return the Application without

prejudice to the Eligible Customer filing

a new or revised Application that fully

complies with the requirements of this

section. The Eligible Customer will be

assigned a new priority consistent with

the date of the new or revised

Application. The Transmission Provider

shall treat this information consistent

with the standards of conduct contained

in Part 37 of the Commission’s

regulations.

29.3 Technical Arrangements to be

Completed Prior to Commencement of

Service: Network Integration

Transmission Service shall not

commence until the Transmission

Provider and the Network Customer

or a third party, have completed

installation of all equipment specified

under the Network Operating

Agreement consistent with Good

Utility Practice and any additional

requirements reasonably and

consistently imposed to ensure the

reliable operation of the Transmission

System. The Transmission Provider

shall exercise reasonable efforts, in

coordination with the Network

Customer to complete such

arrangements as soon as practicable

taking into consideration the Service

Commencement Date.

29.4 Network Customer Facilities: The

provision of Network Integration

Transmission Service shall be

conditioned upon the Network

Customer constructing, maintaining

and operating the facilities on its side

of each delivery point or

interconnection necessary to reliably

deliver capacity and energy from the

Transmission Provider’s Transmission

System to the Network Customer. The

Network Customer shall be solely

responsible for constructing or

installing all facilities on the Network

Customer’s side of each such delivery

point or interconnection.

29.5 This section is intentionally left

blank.

30 Network Resources

30.1 Designation of Network

Resources: Network Resources shall

include all generation owned,

purchased, or leased by the Network

Customer designated to serve Network

Load under the Tariff. Network

Resources may not include resources,

or any portion thereof, that are

committed for sale to non-designated

third party load or otherwise cannot

be called upon to meet the Network

Customer’s Network Load on a noninterruptible basis. Any owned or

purchased resources that were serving

the Network Customer’s loads under

firm agreements entered into on or

before the Service Commencement

Date shall initially be designated as

Network Resources until the Network

Customer terminates the designation

of such resources.

30.2 Designation of New Network

Resources: The Network Customer

may designate a new Network

Resource by providing the

Transmission Provider with as much

advance notice as practicable. A

designation of a new Network

Resource must be made by a request

for modification of service pursuant to

an Application under Section 29.

30.3 Termination of Network

Resources: The Network Customer

may terminate the designation of all

or part of a generating resource as a

Network Resource at any time but

should provide notification to the

Transmission Provider as soon as

reasonably practicable.

30.4 Operation of Network Resources:

The Network Customer shall not

operate its designated Network

Resources located in the Network

Customer’s or Transmission

Provider’s Control Area such that the

output of those facilities exceeds its

designated Network Load, plus nonfirm sales delivered pursuant to Part

II of the Tariff, plus losses. This

limitation shall not apply to changes

in the operation of a Transmission

Customer’s Network Resources at the

request of the Transmission Provider

to respond to an emergency or other

unforeseen condition which may

impair or degrade the reliability of the

Transmission System.

30.5 Network Customer Redispatch

Obligation: As a condition to

receiving Network Integration

Transmission Service, the Network

Customer agrees to redispatch its

Network Resources as requested by

the Transmission Provider pursuant

to Section 33.2. To the extent

practical, the redispatch of resources

pursuant to this section shall be on a

least cost, non-discriminatory basis

between all Network Customers, and

the Transmission Provider.

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With The

Transmission Provider: The Network

Customer shall be responsible for any

arrangements necessary to deliver

capacity and energy from a Network

Resource not physically

interconnected with the Transmission

Provider’s Transmission System. The

Transmission Provider will undertake
50594 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

reasonable efforts to assist the

Network Customer in obtaining such

arrangements, including without

limitation, providing any information

or data required by such other entity

pursuant to Good Utility Practice.

30.7 Limitation on Designation of

Network Resources: The Network

Customer must demonstrate that it

owns or has committed to purchase

generation pursuant to an executed

contract in order to designate a

generating resource as a Network

Resource. Alternatively, the Network

Customer may establish that

execution of a contract is contingent

upon the availability of transmission

service under Part III of the Tariff.

30.8 Use of Interface Capacity by the

Network Customer: There is no

limitation upon a Network Customer’s

use of the Transmission Provider’s

Transmission System at any particular

interface to integrate the Network

Customer’s Network Resources (or

substitute economy purchases) with

its Network Loads. However, a

Network Customer’s use of the

Transmission Provider’s total

interface capacity with other

transmission systems may not exceed

the Network Customer’s Load.

30.9 Network Customer Owned

Transmission Facilities: The Network

Customer that owns existing

transmission facilities that are

integrated with the Transmission

Provider’s Transmission System may

be eligible to receive consideration

either through a billing credit or some

other mechanism. In order to receive

such consideration the Network

Customer must demonstrate that its

transmission facilities are integrated

into the plans or operations of the

Transmission Provider to serve its

power and transmission customers.

For facilities constructed by the

Network Customer subsequent to the

Service Commencement Date under

Part III of the Tariff, the Network

Customer shall receive credit where

such facilities are jointly planned and

installed in coordination with the

Transmission Provider. Calculation of

the credit shall be addressed in either

the Network Customer’s Service

Agreement or any other agreement

between the Parties.

31 Designation of Network Load

31.1 Network Load: The Network

Customer must designate the

individual Network Loads on whose

behalf the Transmission Provider will

provide Network Integration

Transmission Service. The Network

Loads shall be specified in the Service

Agreement.

31.2 New Network Loads Connected

With the Transmission Provider: The

Network Customer shall provide the

Transmission Provider with as much

advance notice as reasonably

practicable of the designation of new

Network Load that will be added to its

Transmission System. A designation

of new Network Load must be made

through a modification of service

pursuant to a new Application. The

Transmission Provider will use due

diligence to install any transmission

facilities required to interconnect a

new Network Load designated by the

Network Customer. The costs of new

facilities required to interconnect a

new Network Load shall be

determined in accordance with the

procedures provided in Section 32.4

and shall be charged to the Network

Customer in accordance with

Commission policies.

31.3 Network Load Not Physically

Interconnected with the Transmission

Provider: This section applies to both

initial designation pursuant to Section

31.1 and the subsequent addition of

new Network Load not physically

interconnected with the Transmission

Provider. To the extent that the

Network Customer desires to obtain

transmission service for a load outside

the Transmission Provider’s

Transmission System, the Network

Customer shall have the option of (1)

electing to include the entire load as

Network Load for all purposes under

Part III of the Tariff and designating

Network Resources in connection

with such additional Network Load,

or (2) excluding that entire load from

its Network Load and purchasing

Point-To-Point Transmission Service

under Part II of the Tariff. To the

extent that the Network Customer

gives notice of its intent to add a new

Network Load as part of its Network

Load pursuant to this section the

request must be made through a

modification of service pursuant to a

new Application.

31.4 New Interconnection Points: To

the extent the Network Customer

desires to add a new Delivery Point or

interconnection point between the

Transmission Provider’s Transmission

System and a Network Load, the

Network Customer shall provide the

Transmission Provider with as much

advance notice as reasonably

practicable.

31.5 Changes in Service Requests:

Under no circumstances shall the

Network Customer’s decision to

cancel or delay a requested change in

Network Integration Transmission

Service (e.g. the addition of a new

Network Resource or designation of a

new Network Load) in any way

relieve the Network Customer of its

obligation to pay the costs of

transmission facilities constructed by

the Transmission Provider and

charged to the Network Customer as

reflected in the Service Agreement.

However, the Transmission Provider

must treat any requested change in

Network Integration Transmission

Service in a non-discriminatory

manner. The Transmission Provider

will have no obligation to refund any

advance of funds expended for

purposes of providing facilities for a

Network Customer. However, upon

receipt of a Network Customer’s

written notice of such a cancellation

or delay, the Transmission Provider

will use the same reasonable efforts to

mitigate the costs and charges owed to

the Transmission Provider as it would

to reduce its own costs and charges.

31.6 Annual Load and Resource

Information Updates: The Network

Customer shall provide the

Transmission Provider with annual

updates of Network Load and

Network Resource forecasts consistent

with those included in its Application

for Network Integration Transmission

Service under Part III of the Tariff.

The Network Customer also shall

provide the Transmission Provider

with timely written notice of material

changes in any other information

provided in its Application relating to

the Network Customer’s Network

Load, Network Resources, its

transmission system or other aspects

of its facilities or operations affecting

the Transmission Provider’s ability to

provide reliable service.

32 Additional Study Procedures For

Network Integration Transmission

Service Requests

32.1 Notice of Need for System Impact

Study: After receiving a request for

service, the Transmission Provider

shall determine on a nondiscriminatory basis whether a

System Impact Study is needed. A

description of the Transmission

Provider’s methodology for

completing a System Impact Study is

provided in Attachment D. If the

Transmission Provider determines

that a System Impact Study is

necessary to accommodate the

requested service, it shall so inform

the Eligible Customer, as soon as

practicable. In such cases, the

Transmission Provider shall within

thirty (30) days of receipt of a

Completed Application, tender a

System Impact Study Agreement

pursuant to which the Eligible

Customer shall agree to advance funds
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50595

to the Transmission Provider for

performing the required System

Impact Study. For a service request to

remain a Completed Application, the

Eligible Customer shall execute the

System Impact Study Agreement and

return it to the Transmission Provider

within fifteen (15) days. If the Eligible

Customer elects not to execute the

System Impact Study Agreement, its

Application shall be deemed

withdrawn.

32.2 System Impact Study Agreement

and Compensation:

(i) The System Impact Study

Agreement will clearly specify the

Transmission Provider’s estimate of

the actual cost, and time for

completion of the System Impact

Study. The charge shall not exceed

the actual cost of the study. In

performing the System Impact

Study, the Transmission Provider

shall rely, to the extent reasonably

practicable, on existing

transmission planning studies. The

Eligible Customer will not be

assessed a charge for such existing

studies; however, the Eligible

Customer will be responsible for

charges associated with any

modifications to existing planning

studies that are reasonably

necessary to evaluate the impact of

the Eligible Customer’s request for

service on the Transmission

System.

(ii) If in response to multiple Eligible

Customers requesting service in

relation to the same competitive

solicitation, a single System Impact

Study is sufficient for the

Transmission Provider to

accommodate the service requests,

the costs of that study shall be prorated among the Eligible Customers.

(iii) For System Impact Studies that

the Transmission Provider conducts

on its own behalf, the Transmission

Provider shall record the cost of the

System Impact Studies pursuant to

Section 8.

32.3 System Impact Study Procedures:

Upon receipt of an executed System

Impact Study Agreement, the

Transmission Provider will use due

diligence to complete the required

System Impact Study within a sixty

(60) day period. The System Impact

Study shall identify any system

constraints and redispatch options,

additional Direct Assignment

Facilities or Network Upgrades

required to provide the requested

service. In the event that the

Transmission Provider is unable to

complete the required System Impact

Study within such time period, it

shall so notify the Eligible Customer

and provide an estimated completion

date along with an explanation of the

reasons why additional time is

required to complete the required

studies. A copy of the completed

System Impact Study and related

work papers shall be made available

to the Eligible Customer. The

Transmission Provider will use the

same due diligence in completing the

System Impact Study for an Eligible

Customer as it uses when completing

studies for itself. The Transmission

Provider shall notify the Eligible

Customer immediately upon

completion of the System Impact

Study if the Transmission System will

be adequate to accommodate all or

part of a request for service or that no

costs are likely to be incurred for new

transmission facilities or upgrades. In

order for a request to remain a

Completed Application, within fifteen

(15) days of completion of the System

Impact Study the Eligible Customer

must execute a Service Agreement or

request service without an executed

Service Agreement pursuant to

Section 29.1, or the Application shall

be deemed terminated and

withdrawn.

32.4 Facilities Study Procedures: If a

System Impact Study indicates that

additions or upgrades to the

Transmission System are needed to

supply the Eligible Customer’s service

request, the Transmission Provider,

within thirty (30) days of the

completion of the System Impact

Study, shall tender to the Eligible

Customer a Facilities Study

Agreement pursuant to which the

Eligible Customer shall agree to

advance funds to the Transmission

Provider for performing the required

Facilities Study. For a service request

to remain a Completed Application,

the Eligible Customer shall execute

the Facilities Study Agreement and

return it to the Transmission Provider

within fifteen (15) days. If the Eligible

Customer elects not to execute the

Facilities Study Agreement, its

Application shall be deemed

withdrawn and its deposit shall be

returned. Upon receipt of an executed

Facilities Study Agreement, the

Transmission Provider will use due

diligence to complete the required

Facilities Study within a sixty (60)

day period. If the Transmission

Provider is unable to complete the

Facilities Study in the allotted time

period, the Transmission Provider

shall notify the Eligible Customer and

provide an estimate of the time

needed to reach a final determination

along with an explanation of the

reasons that additional time is

required to complete the study. When

completed, the Facilities Study will

include a good faith estimate of (i) the

cost of Direct Assignment Facilities to

be charged to the Eligible Customer,

(ii) the Eligible Customer’s

appropriate share of the cost of any

required Network Upgrades, and (iii)

the time required to complete such

construction and initiate the

requested service. The Eligible

Customer shall advance funds to the

Transmission Provider for the

construction of new facilities and

such advance and construction shall

be provided for in a separate

agreement. If the construction of new

facilities requires the expenditure of

Transmission Provider funds, such

construction shall be contingent upon

the availability of appropriated funds.

The Eligible Customer shall have

thirty (30) days to execute a

construction agreement and a Service

Agreement and provide the advance

payment or request service without an

executed Service Agreement pursuant

to Section 29.1 and provide the

required letter of credit or other form

of security or the request no longer

will be a Completed Application and

shall be deemed terminated and

withdrawn.

33 Load Shedding and Curtailments

33.1 Procedures: Prior to the Service

Commencement Date, the

Transmission Provider and the

Network Customer shall establish

Load Shedding and Curtailment

procedures pursuant to the Network

Operating Agreement with the

objective of responding to

contingencies on the Transmission

System. The Parties will implement

such programs during any period

when the Transmission Provider

determines that a system contingency

exists and such procedures are

necessary to alleviate such

contingency. The Transmission

Provider will notify all affected

Network Customers in a timely

manner of any scheduled Curtailment.

33.2 Transmission Constraints: During

any period when the Transmission

Provider determines that a

transmission constraint exists on the

Transmission System, and such

constraint may impair the reliability

of the Transmission Provider’s

system, the Transmission Provider

will take whatever actions, consistent

with Good Utility Practice, that are

reasonably necessary to maintain the

reliability of the Transmission

Provider’s system. To the extent the

Transmission Provider determines
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that the reliability of the Transmission

System can be maintained by

redispatching resources, the

Transmission Provider will initiate

procedures pursuant to the Network

Operating Agreement to redispatch all

Network Resources and the

Transmission Provider’s own

resources on a least-cost basis without

regard to the ownership of such

resources. Any redispatch under this

section may not unduly discriminate

between the Transmission Provider’s

use of the Transmission System on

behalf of its Native Load Customers

and any Network Customer’s use of

the Transmission System to serve its

designated Network Load.

33.3 Cost Responsibility for Relieving

Transmission Constraints: Whenever

the Transmission Provider

implements least-cost redispatch

procedures in response to a

transmission constraint, the

Transmission Provider and Network

Customers will each bear a

proportionate share of the total

redispatch cost based on their

respective Load Ratio Shares.

33.4 Curtailments of Scheduled

Deliveries: If a transmission constraint

on the Transmission Provider’s

Transmission System cannot be

relieved through the implementation

of least-cost redispatch procedures

and the Transmission Provider

determines that it is necessary to

Curtail scheduled deliveries, the

Parties shall Curtail such schedules in

accordance with the Network

Operating Agreement.

33.5 Allocation of Curtailments: The

Transmission Provider shall, on a

non-discriminatory basis, Curtail the

transaction(s) that effectively relieve

the constraint. However, to the extent

practicable and consistent with Good

Utility Practice, any Curtailment will

be shared by the Transmission

Provider and Network Customer in

proportion to their respective Load

Ratio Shares. The Transmission

Provider shall not direct the Network

Customer to Curtail schedules to an

extent greater than the Transmission

Provider would Curtail the

Transmission Provider’s schedules

under similar circumstances.

33.6 Load Shedding: To the extent that

a system contingency exists on the

Transmission Provider’s Transmission

System and the Transmission

Provider determines that it is

necessary for the Transmission

Provider and the Network Customer

to shed load, the Parties shall shed

load in accordance with previously

established procedures under the

Network Operating Agreement.

33.7 System Reliability:

Notwithstanding any other provisions

of this Tariff, the Transmission

Provider reserves the right, consistent

with Good Utility Practice and on a

not unduly discriminatory basis, to

Curtail Network Integration

Transmission Service without liability

on the Transmission Provider’s part

for the purpose of making necessary

adjustments to, changes in, or repairs

on its lines, substations and facilities,

and in cases where the continuance of

Network Integration Transmission

Service would endanger persons or

property. In the event of any adverse

condition(s) or disturbance(s) on the

Transmission Provider’s Transmission

System or on any other system(s)

directly or indirectly interconnected

with the Transmission Provider’s

Transmission System, the

Transmission Provider, consistent

with Good Utility Practice, also may

Curtail Network Integration

Transmission Service in order to (i)

limit the extent or damage of the

adverse condition(s) or disturbance(s),

(ii) prevent damage to generating or

transmission facilities, or (iii)

expedite restoration of service. The

Transmission Provider will give the

Network Customer as much advance

notice as is practicable in the event of

such Curtailment. Any Curtailment of

Network Integration Transmission

Service will be not unduly

discriminatory relative to the

Transmission Provider’s use of the

Transmission System on behalf of its

Native Load Customers. The

Transmission Provider shall specify

the rate treatment and all related

terms and conditions applicable in

the event that the Network Customer

fails to respond to established Load

Shedding and Curtailment

procedures.

34 Rates and Charges

The Network Customer shall pay the

Transmission Provider for any Direct

Assignment Facilities, Ancillary

Services, and applicable study costs,

consistent with Federal policy, along

with the following:

34.1 Monthly Demand Charge: The

Network Customer shall pay a

monthly Demand Charge, which shall

be determined by multiplying its Load

Ratio Share times one twelfth (1⁄12) of

the Transmission Provider’s Annual

Transmission Revenue Requirement

specified in Schedule H.

34.2 Determination of Network

Customer’s Monthly Network Load:

The Network Customer’s monthly

Network Load is its hourly load

(including its designated Network

Load not physically interconnected

with the Transmission Provider under

Section 31.3) coincident with the

Transmission Provider’s Monthly

Transmission System Peak.

34.3 Determination of Transmission

Provider’s Monthly Transmission

System Load: The Transmission

Provider’s monthly Transmission

System load is the Transmission

Provider’s Monthly Transmission

System Peak minus the coincident

peak usage of all Firm Point-To-Point

Transmission Service customers

pursuant to Part II of this Tariff plus

the Reserved Capacity of all Firm

Point-To-Point Transmission Service

customers.

34.4 Redispatch Charge: The Network

Customer shall pay a Load Ratio

Share of any redispatch costs

allocated between the Network

Customer and the Transmission

Provider pursuant to Section 33. To

the extent that the Transmission

Provider incurs an obligation to the

Network Customer for redispatch

costs in accordance with Section 33,

such amounts shall be credited

against the Network Customer’s bill

for the applicable month.

34.5 Stranded Cost Recovery: The

Transmission Provider may seek to

recover stranded costs from the

Network Customer in a manner

consistent with applicable Federal

law and regulations.

35 Operating Arrangements

35.1 Operation under The Network

Operating Agreement: The Network

Customer shall plan, construct,

operate and maintain its facilities in

accordance with Good Utility Practice

and in conformance with the Network

Operating Agreement.

35.2 Network Operating Agreement:

The terms and conditions under

which the Network Customer shall

operate its facilities and the technical

and operational matters associated

with the implementation of Part III of

the Tariff shall be specified in the

Network Operating Agreement. The

Network Operating Agreement shall

provide for the Parties to (i) operate

and maintain equipment necessary for

integrating the Network Customer

within the Transmission Provider’s

Transmission System (including, but

not limited to, remote terminal units,

metering, communications equipment

and relaying equipment), (ii) transfer

data between the Transmission

Provider and the Network Customer

(including, but not limited to, heat

rates and operational characteristics

of Network Resources, generation
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50597

schedules for units outside the

Transmission Provider’s Transmission

System, interchange schedules, unit

outputs for redispatch required under

Section 33, voltage schedules, loss

factors and other real time data), (iii)

use software programs required for

data links and constraint dispatching,

(iv) exchange data on forecasted loads

and resources necessary for long-term

planning, and (v) address any other

technical and operational

considerations required for

implementation of Part III of the

Tariff, including scheduling

protocols. The Network Operating

Agreement will recognize that the

Network Customer shall either (i)

operate as a Control Area under

applicable guidelines of the North

American Electric Reliability Council

(NERC) and the applicable regional

reliability council, (ii) satisfy its

Control Area requirements, including

all necessary Ancillary Services, by

contracting with the Transmission

Provider, or (iii) satisfy its Control

Area requirements, including all

necessary Ancillary Services, by

contracting with another entity,

consistent with Good Utility Practice,

which satisfies NERC and the

applicable regional reliability council

requirements. The Transmission

Provider shall not unreasonably

refuse to accept contractual

arrangements with another entity for

Ancillary Services. The Network

Operating Agreement is included in

Attachment G.

35.3 Network Operating Committee: A

Network Operating Committee

(Committee) shall be established to

coordinate operating criteria for the

Parties’ respective responsibilities

under the Network Operating

Agreement. Each Network Customer

shall be entitled to have at least one

representative on the Committee. The

Committee shall meet from time to

time as need requires, but no less than

once each calendar year.

Schedule 1

Scheduling, System Control and

Dispatch Service

This service is required to schedule

the movement of power through, out of,

within, or into a Control Area. This

service can be provided only by the

operator of the Control Area in which

the transmission facilities used for

transmission service are located.

Scheduling, System Control and

Dispatch Service is provided directly by

the Transmission Provider if the

Transmission Provider is the Control

Area Operator or indirectly by the

Transmission Provider making

arrangements with the Control Area

operator that performs this service for

the Transmission Provider’s

Transmission System. The Transmission

Customer must purchase this service

from the Transmission Provider or the

Control Area operator. The charges for

Scheduling, System Control and

Dispatch Service are to be based on the

rates referred to below. To the extent the

Control Area operator performs this

service for the Transmission Provider,

charges to the Transmission Customer

are to reflect only a pass-through of the

costs charged to the Transmission

Provider by that Control Area operator.

The Transmission System specific

charges for Scheduling, System Control

and Dispatch Service are set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

The Transmission Provider may

modify the charges for Scheduling,

System Control and Dispatch Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Scheduling, System Control and

Dispatch Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 2

Reactive Supply and Voltage Control

From Generation Sources Service

In order to maintain transmission

voltages on the Transmission Provider’s

transmission facilities within acceptable

limits, generation facilities under the

control of the Control Area operator are

operated to produce or absorb reactive

power. Thus, Reactive Supply and

Voltage Control from Generation

Sources Service must be provided for

each transaction on the Transmission

Provider’s transmission facilities. The

amount of Reactive Supply and Voltage

Control from Generation Sources

Service that must be supplied with

respect to the Transmission Customer’s

transaction will be determined based on

the reactive power support necessary to

maintain transmission voltages within

limits that are generally accepted in the

region and consistently adhered to by

the Transmission Provider.

Reactive Supply and Voltage Control

from Generation Sources Service can be

provided directly by the Transmission

Provider if the Transmission Provider is

the Control Area operator or indirectly

by the Transmission Provider making

arrangements with the Control Area

operator that performs this service for

the Transmission Provider’s

Transmission System. The Transmission

Customer must purchase this service

from the Transmission Provider or the

Control Area operator. The charges for

such service will be based upon the

rates referred to below. To the extent the

Control Area operator performs this

service for the Transmission Provider,

charges to the Transmission Customer

are to reflect only a pass-through of the

costs charged to the Transmission

Provider by the Control Area Operator.

The Transmission System specific

charges for Reactive Supply and Voltage

Control from Generation Sources

Service are set forth in the appropriate

rate schedule attached to and made part

of the applicable Service Agreement.

The rates or rate methodology used to

calculate the charges for service under

this schedule were promulgated and

may be modified pursuant to applicable

Federal laws, regulations and policies.

The Transmission Provider may

modify the charges for Reactive Supply

and Voltage Control from Generation

Sources Service upon written notice to

the Transmission Customer. Any change

to the charges to the Transmission

Customer for Reactive Supply and

Voltage Control from Generation

Sources Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 3

Regulation and Frequency Response

Service

Regulation and Frequency Response

Service is necessary to provide for the

continuous balancing of resources,

generation and interchange, with load

and for maintaining scheduled

interconnection frequency at sixty

cycles per second (60 Hz). Regulation

and Frequency Response Service is

accomplished by committing on-line

generation whose output is raised or

lowered, predominantly through the use

of automatic generating control

equipment, as necessary to follow the
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moment-by-moment changes in load.

The obligation to maintain this balance

between resources and load lies with

the Transmission Provider (or the

Control Area operator that performs this

function for the Transmission Provider).

The Transmission Provider must offer

this service when the transmission

service is used to serve load within its

Control Area. The Transmission

Customer must either purchase this

service from the Transmission Provider

or make alternative comparable

arrangements to satisfy its Regulation

and Frequency Response Service

obligation. The charges for Regulation

and Frequency Response Service are

referred to below. The amount of

Regulation and Frequency Response

Service will be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission System specific

charges for Regulation and Frequency

Response Service are set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

The Transmission Provider may

modify the charges for Regulation and

Frequency Response Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Regulation and Frequency Response

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 4

Energy Imbalance Service

Energy Imbalance Service is provided

when a difference occurs between the

scheduled and the actual delivery of

energy to a load located within a

Control Area over a single hour. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either obtain this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Energy Imbalance Service

obligation. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission Provider shall

establish a deviation band of +/¥1.5

percent (with a minimum of 2 MW) of

the scheduled transaction to be applied

hourly to any energy imbalance that

occurs as a result of the Transmission

Customer’s scheduled transaction(s).

Parties should attempt to eliminate

energy imbalances within the limits of

the deviation band within thirty (30)

days or within such other reasonable

period of time as is generally accepted

in the region and consistently adhered

to by the Transmission Provider. If an

energy imbalance is not corrected

within thirty (30) days or a reasonable

period of time that is generally accepted

in the region and consistently adhered

to by the Transmission Provider, the

Transmission Customer will

compensate the Transmission Provider

for such service. Energy imbalances

outside the deviation band will be

subject to charges to be specified by the

Transmission Provider. Compensation

for Energy Imbalance Service will be as

set forth below.

The Transmission System specific

compensation for Energy Imbalance

Service are set forth in the appropriate

rate schedule attached to and made part

of the applicable Service Agreement.

The rates or rate methodology used to

calculate the charges for service under

this schedule were promulgated and

may be modified pursuant to applicable

Federal laws, regulations and policies.

The Transmission Provider may

modify the compensation for Energy

Imbalance Service upon written notice

to the Transmission Customer. Any

change to the compensation to the

Transmission Customer for Energy

Imbalance Service shall be as set forth

in a subsequent rate schedule

promulgated pursuant to applicable

Federal laws, regulations and policies

and attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 5

Operating Reserve—Spinning Reserve

Service

Spinning Reserve Service is needed to

serve load immediately in the event of

a system contingency. Spinning Reserve

Service may be provided by generating

units that are on-line and loaded at less

than maximum output. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Spinning Reserve Service

obligation. The charges for Spinning

Reserve Service are referred to below.

The amount of Spinning Reserve

Service will be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission System specific

charges for Operating Reserve—

Spinning Reserve Service are set forth in

the appropriate rate schedule attached

to and made part of the applicable

Service Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

The Transmission Provider may

modify the charges for Operating

Reserve—Spinning Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Spinning Reserve

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 6

Operating Reserve—Supplemental

Reserve Service

Supplemental Reserve Service is

needed to serve load in the event of a

system contingency; however, it is not

available immediately to serve load but

rather within a short period of time.

Supplemental Reserve Service may be

provided by generating units that are

on-line but unloaded, by quick-start

generation or by interruptible load. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50599

alternative comparable arrangements to

satisfy its Supplemental Reserve Service

obligation. The charges for

Supplemental Reserve Service are

referred to below. The amount of

Supplemental Reserve Service will be

set forth in the Service Agreement. To

the extent the Control Area operator

performs this service for the

Transmission Provider, charges to the

Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission System specific

charges for Operating Reserve—

Supplemental Reserve Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations and policies.

The Transmission Provider may

modify the charges for Operating

Reserve—Supplemental Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Supplemental

Reserve Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 7

Long-Term Firm and Short-Term Firm

Point-To-Point Transmission Service

The Transmission Customer shall

compensate the Transmission Provider

each month for Reserved Capacity

pursuant to the Transmission System

specific Firm Point-to-Point

Transmission Service Rate Schedule

attached to and made a part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations and policies.

The Transmission Provider may

modify the charges for Firm Point-toPoint Transmission Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for Firm

Point-to-Point Transmission Service

shall be as set forth in a subsequent rate

schedule promulgated pursuant to

applicable Federal laws, regulations and

policies and attached to and made part

of the applicable Service Agreement.

The Transmission Provider shall charge

the Transmission Customer in

accordance with the rate then in effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts, including requests for use by

one’s wholesale merchant or an

affiliate’s use, must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from Point(s) of Receipt to

Point(s) of Delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Schedule 8

Non-Firm Point-To-Point Transmission

Service

The Transmission Customer shall

compensate the Transmission Provider

for Non-Firm Point-to-Point

Transmission Service pursuant to the

Transmission System specific Non-Firm

Point-to-Point Transmission Service

Rate Schedule attached to and made a

part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

The Transmission Provider may

modify the charges for Firm Point-toPoint Transmission Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for Firm

Point-to-Point Transmission Service

shall be as set forth in a subsequent rate

schedule promulgated pursuant to

applicable Federal laws, regulations and

policies and attached to and made part

of the applicable Service Agreement.

The Transmission Provider shall charge

the Transmission Customer in

accordance with the rate then in effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts, including requests for use by

one’s wholesale merchant or an

affiliate’s use, must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from Point(s) of Receipt to

Point(s) of Delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Attachment A

Form of Service Agreement for Firm

Point-To-Point Transmission Service

1.0 This Service Agreement, dated as

of lllllllll, is entered into,

by and between the (Region) of

Western Area Power Administration

(Transmission Provider), and

llllll (Transmission

Customer). The Transmission

Provider may revise charges or losses

for Firm Point-to-Point Transmission

Service provided under this Service

Agreement pursuant to applicable

Federal Laws, regulations and policies

upon written notice to the

Transmission Customer.

2.0 The Transmission Customer has

been determined by the Transmission

Provider to have a Completed

Application for Firm Point-To-Point

Transmission Service under the

Tariff.

3.0 The Transmission Customer has

provided to the Transmission

Provider a nonrefundable Application

processing fee in accordance with the

provisions of Section 17.3 of the

Tariff.

4.0 Service under this agreement shall

commence on the later of (1) the

requested Service Commencement

Date, or (2) the date on which

construction of any Direct Assignment

Facilities and/or Network Upgrades

are completed, or (3) such other date

as is mutually agreed. Service under

this agreement shall terminate on

llllll.

5.0 The Transmission Provider agrees

to provide and the Transmission

Customer agrees to take and pay for

Firm Point-To-Point Transmission

Service in accordance with the

provisions of Part II of the Tariff, and

this Service Agreement.

6.0 Any notice or request made to or

by either Party regarding this Service

Agreement shall be made to the

representative of the other Party as

indicated below.
50600 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

Transmission Provider:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

7.0 The Tariff and the ‘‘Specifications

For Long-Term Firm Point-To-Point’’

as presently constituted or as they

may be revised or superseded are

incorporated herein and made a part

hereof.

In witness whereof, the Parties have

caused this Service Agreement to be

executed by their respective authorized

officials.

Western Area Power Administration

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

(Transmission Customer)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Specifications for Long-Term Firm Point-ToPoint Transmission Service

For purposes of this Service Agreement,

the Transmission Provider’s Transmission

System consists of the facilities of the

(Region) as described in Attachment K.

1.0 Term of Transaction: llllllll

Start Date: llllllllllllll

Termination Date: lllllllllll

2.0 Description of capacity and energy to be

transmitted by Transmission Provider

including the electric Control Area in

which the transaction originates.

lllllllllllllllllllll

3.0 Point(s) of Receipt: lllllllll

Delivering Party: llllllllllll

Capacity Reservation: lllllllll

4.0 Point(s) of Delivery: lllllllll

Receiving Party: llllllllllll

Capacity Reservation: lllllllll

5.0 The Maximum amount of capacity and

energy to be transmitted (Reserved

Capacity) is : ll

6.0 Designation of party(ies) subject to

reciprocal service obligation:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

7.0 Name of the Control Area from which

capacity and energy will be delivered to

the Transmission Provider for

Transmission Service:

lllllllllllllllllllll

Name of the Control Area to which capacity

and energy will be delivered by the

Transmission Provider:

lllllllllllllllllllll

Name(s) of any Intervening Systems

providing transmission service:

lllllllllllllllllllll

lllllllllllllllllllll

8.0 Service under this Agreement may be

subject to some combination of the charges

detailed below. The appropriate charges for

individual transactions will be determined

in accordance with the terms and

conditions of the Tariff.

8.1 Transmission Charge: llllllll

8.2 System Impact and/or Facilities Study

Charge(s):

lllllllllllllllllll

lllllllllllllllllll

8.3 Direct Assignment Facilities Charge:

lllllllllllllllllll

8.4 Ancillary Services Charges:

lllllllllllllllllll

lllllllllllllllllll

lllllllllllllllllll

lllllllllllllllllll

8.5 Redispatch Charges:

To be filled in if applicable.

8.6 Network Upgrade Charges:

To be filled in if applicable

9.0 Power Factor: The Transmission

Customer will be required to maintain a

power factor between ll-percent lagging

and ll-percent leading for all deliveries

of capacity and energy to and from the

Transmission Provider’s Transmission

System.

10.0 Transmission Losses

10.1 Loss Factors:

10.1.1 If, based on operating experience and

technical studies, the Transmission

Provider determines that any of the

transmission loss factors on the

Transmission Provider’s Transmission

System differs from the loss factors set

forth in this Service Agreement, the

Transmission Provider reserves the right to

update this Service Agreement to reflect

such revised loss factors.

10.1.2 Transmission Provider Transmission

Loss Factor: Transmission Provider

transmission losses shall be ll% and

shall be assessed on the power scheduled

and transmitted to a point of delivery on

the Transmission Provider’s Transmission

System.

11.0 Ancillary Services

11.1 Provided by Transmission Provider

11.1.1 Scheduling, System Control, and

Dispatch Service

11.1.2 Reactive Supply and Voltage

Control from Generation Sources Service

11.2 Provided by Transmission Customer

11.2.1 (To be filled in if applicable)

11.2.2

11.3 Provided by llll

11.3.1 (To be filled in if applicable)

11.3.2

12.0 Net Billing and Bill Crediting Option:

The Parties have agreed to implement [Net

Billing, Bill Crediting, or both] as set forth

in Attachment J.

13.0 Charges for Service: Charges for Firm

Point-to-Point Transmission Service and

associated Ancillary Services shall be

calculated in accordance with [Rate

Schedules] attached hereto and made a

part of this Service Agreement. The rates

or rate methodology used to calculate the

charges for service under that schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

Attachment B

Form Of Service Agreement For NonFirm Point-To-Point Transmission

Service

1.0 This Service Agreement, dated as

of llllllll, is entered into,

by and between the (Region) of

Western Area Power Administration

(Transmission Provider), and

llllllll (Transmission

Customer). The Transmission

Provider may revise charges or losses

for Non-Firm Point-to-Point

Transmission Service provided under

this Service Agreement pursuant to

applicable Federal laws, regulations

and policies upon written notice to

the Transmission Customer.

2.0 The Transmission Customer has

been determined by the Transmission

Provider to be a Transmission

Customer under Part II of the Tariff

and has filed a Completed

Application for Non-Firm Point-ToPoint Transmission Service in

accordance with Section 18.2 of the

Tariff.

3.0 Service under this Service

Agreement shall be provided by the

Transmission Provider upon request

by an authorized representative of the

Transmission Customer. For purposes

of this Service Agreement, the

Transmission Provider’s Transmission

System consists of the facilities of the

(Region) as described in Attachment

K.

4.0 The Transmission Customer agrees

to supply information the

Transmission Provider deems

reasonably necessary in accordance

with Good Utility Practice in order for

it to provide the requested service.

5.0 The Transmission Provider agrees

to provide and the Transmission

Customer agrees to take and pay for

Non-Firm Point-To-Point

Transmission Service in accordance

with the provisions of Part II of the

Tariff, and this Service Agreement.

6.0 Any notice or request made to or

by either Party regarding this Service

Agreement shall be made to the

representative of the other Party as

indicated below.

Transmission Provider:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

7.0 The Tariff as presently constituted

or as it may be revised or superseded
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50601

is incorporated herein and made a

part hereof.

8.0 Power Factor: The Transmission

Customer will be required to maintain

a power factor between ll-percent

lagging and ll-percent leading for

all deliveries of capacity and energy

to and from the Transmission

Provider’s Transmission System.

9.0 Transmission Losses:

9.1 Loss Factors:

9.1.1 If, based on operating experience

and technical studies, the

Transmission Provider determines

that any of the transmission loss

factors on the Transmission Provider’s

Transmission Systems differ from the

loss factors set forth in this Service

Agreement, the Transmission

Provider reserves the right to update

this Service Agreement to reflect such

revised loss factors.

9.1.2 Transmission Provider

Transmission Loss Factor:

Transmission Provider transmission

losses shall be ll% and shall be

assessed on the power scheduled and

transmitted to a point of delivery on

the Transmission Provider’s

Transmission System.

10.0 Ancillary Services

10.1 Provided by Transmission

Provider

10.1.1 Scheduling, System Control,

and Dispatch Service

10.1.2 Reactive Supply and Voltage

Control from Generation Sources

Service

10.2 Provided by Transmission

Customer

10.2.1 To be filled in if appropriate

10.2.2

10.3 Provided by llll

10.3.1 To be filled in if appropriate

10.3.2

11.0 Net Billing and Bill Crediting

Option: The Parties have agreed to

implement [Net Billing, Bill Crediting,

or both] as set forth in Attachment J.

12.0 Charges for Service: Charges for

Non-Firm Point-to-Point

Transmission Service and associated

Ancillary Services shall be calculated

in accordance with [Rate Schedules]

attached hereto and made a part of

this Service Agreement. The rates or

rate methodology used to calculate

the charges for service under that

schedule were promulgated and may

be modified pursuant to applicable

Federal laws, regulations and policies.

IN WITNESS WHEREOF, the Parties

have caused this Service Agreement to

be executed by their respective

authorized officials.

WESTERN AREA POWER

ADMINISTRATION

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

Date: llllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

Date: llllllllllllllllll

Attachment C

Methodology To Assess Available

Transmission Capability

The Transmission Provider will

compute the transmission transfer

capability available on a point-to-point

basis from the Delivering Party to the

Receiving Party using Good Utility

Practice and the engineering and

operating principles, standards,

guidelines and criteria of the

Transmission Provider, the applicable

Regional Reliability Council, any entity

of which the Transmission Provider is a

member and is approved by the

Commission to promulgate or apply

regional or national reliability planning

standards (such as a regional

transmission group, RTG), or any

similar organization that may exist in

the future of which the Transmission

Provider is then a member. Principal

items used to determine maximum

transmission transfer capability

available shall include reliability,

transmission element loading, system

contingency performance, voltage

levels, and stability. In determining

Available Transmission Capability, the

Transmission Provider will reserve

sufficient transmission capability to

meet its current and forecasted power

service obligations, current and

forecasted Network Customer loads, and

existing transmission service

obligations.

Attachment D

Methodology For Completing a System

Impact Study

The Transmission Provider will assess

the capability of the Transmission

System to provide the service requested

using the criteria and process for this

assessment as detailed in Sections 4 and

5 of the Transmission Provider’s annual

FERC Form 715 submittal in those

instances where the Transmission

Provider is a member of the Western

Systems Coordinating Council. (CRSP,

DSW, RMR, and SNR) The Transmission

Provider will use the Mid-Continent

Area Power Pool (MAPP) System Impact

Study Methodology when the

Transmission Provider is a member of

MAPP. (UGPR)

Attachment E

Index of Point-To-Point Transmission

Service Customers

Customer Date of service

agreement

Attachment F

Service Agreement For Network

Integration Transmission Service

1.0 This Service Agreement, dated as

of llllllll, is entered into,

by and between the ( Region) of

Western Area Power Administration

(Transmission Provider), and

llllllll (Transmission

Customer).

2.0 The Transmission Customer has

been determined by the Transmission

Provider to have a Completed

Application for Network Integration

Transmission Service under the

Tariff.

3.0 Service under this Service

Agreement shall commence on the

later of (1) llllllll, or (2)

the date on which construction of any

Direct Assignment Facilities and/or

Network Upgrades are completed, or

(3) such other date as is mutually

agreed. Service under this Service

Agreement shall terminate on

llllllll.

4.0 The Transmission Provider agrees

to provide and the Transmission

Customer agrees to take and pay for

Network Integration Transmission

Service in accordance with the

provisions of Part III of the Tariff, and

this Service Agreement.

5.0 Any notice or request made to or

by either Party regarding this Service

Agreement shall be made to the

representative of the other Party as

indicated below.

Transmission Provider:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

6.0 The Tariff and the ‘‘Specifications

for Network Integration Transmission

Service’’ as presently constituted or as

they may be revised or superseded are

incorporated herein and made a part

hereof.

IN WITNESS WHEREOF, the Parties

have caused this Service Agreement to

be executed by their respective

authorized officials.
50602 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

WESTERN AREA POWER

ADMINISTRATION

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Specifications for Network Integration

Transmission Service

For purposes of this Service

Agreement, the Transmission Provider’s

Transmission System consists of the

facilities of the (Region) as described in

Attachment K.

1.0 The Transmission Provider will

provide Network Integration

Transmission Service over the

Transmission Provider’s Transmission

System for the delivery of capacity

and energy from the Network

Customer’s designated Network

Resources to the Network Customer’s

designated Network Load. The

Transmission Provider will also

provide non-firm transmission service

from non-designated Network

Resources under the terms of this

Service Agreement. The loss factors

associated with this Network

Integration Transmission Service are

set forth below. Such losses shall be

applied and accounted for as set forth

in Section 4.

2.0 Designated Network Resources:

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

3.0 Designated Network Loads:

Designated Network Load & Estimated Maximum

Resource (MW) Point of Delivery Voltage

4.0 Transmission Losses:

4.1 Loss Factors:

4.1.1 If, based on operating

experience and technical studies,

the Transmission Provider

determines that any of the

transmission loss factors on the

Transmission Provider’s

Transmission System differ from

the loss factors set forth in this

Service Agreement, the

Transmission Provider reserves the

right to update this Service

Agreement to reflect such revised

loss factors.

4.1.2 Transmission Provider

Transmission Loss Factor: For

deliveries to the Network Customer

Network Load, Transmission

Provider transmission losses shall

be—% and shall be assessed on the

power scheduled and transmitted to

a point of delivery on the

Transmission Provider’s

Transmission System.

4.2 Transmission losses may be

revised by written notice from the

Transmission Provider to the

Transmission Customer.

5.0 The Network Customer’s

transmission facilities that are

integrated with the Transmission

Provider’s Transmission System

will receive lllll credit.

These facilities include the

following:

5.1 llllll

5.2 llllll

6.0 Names of any intervening systems

with whom the Network Customer

has arranged for transmission

service to the Transmission

Provider’s Transmission System.

6.1 llllll

6.2 llllll

7.0 Power Factor: The Transmission

Customer will be required to maintain

a power factor betweenl-percent

lagging andl-percent leading for all

deliveries of capacity and energy to

and from the Transmission Provider’s

Transmission System.

8.0 Ancillary Services

8.1 Provided by Transmission

Provider

8.1.1 Scheduling, System Control,

and Dispatch Service

8.1.2 Reactive Supply and Voltage

Control from Generation Sources

Service

8.2 Provided by Transmission

Customer

8.2.1 (To be filled in if appropriate)

8.2.2

8.3 Provided by llll

8.3.1 (To be filled in if appropriate)

8.3.2

9.0 Net Billing and Bill Crediting

Option: The Parties have agreed to

implement [Net Billing, Bill Crediting,

or both] as set forth in Attachment J.

10.0 Charges for Service: Charges for

associated Ancillary Services shall be

calculated in accordance with [Rate

Schedule] attached hereto and made a

part of this Service Agreement. The

rates or rate methodology used to

calculate the charges for service under

that schedule were promulgated and

may be modified pursuant to

applicable Federal laws, regulations

and policies.

Attachment G

Network Operating Agreement

To be filed by the Transmission

Provider at such time as the

Transmission Provider has negotiated or
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50603

offered a Network Integration

Transmission Service Agreement. The

terms and conditions under which the

Network Customer will be required to

operate its facilities and the technical

and operational matters associated with

the implementation of Network

Integration Transmission Service and

this Service Agreement will be specified

in a separate Network Operating

Agreement.

The Network Operating Agreement

will include provisions addressing the

following:

Authorized Representatives of the

Parties

Network Operating Committee

Load Following

System Protection

Redispatch to Manage Transmission

Constraints

Maintenance of Facilities

Load Shedding

Operation Impacts

Service Conditions

Data, Information and Reports

Metering

Communications

System Regulation and Operating

Reserves

Assignment

Notices

Accounting for Transmission Losses

(Alternative language to be used only by

UGPR) Network Integration

Transmission provided by the

Transmission Provider will be subject to

all operating and scheduling procedures

and protocols of the Mid-Continent Area

Power Pool (MAPP) as stated in the

MAPP Restated Agreement and the

MAPP Operating Handbook as existing

and as may be amended, superseded or

replaced. The Transmission Provider

will therefore not enter into a separate

Network Operating Agreement with

each Network Customer.

Attachment H

Annual Transmission Revenue

Requirement For Network Integration

Transmission Service

1.0 The Annual Transmission Revenue

Requirement for purposes of the

Network Integration Transmission

Service is to be set forth in a separate

Rate Schedule.

2.0 The amount in 1 shall be effective

until amended by the Transmission

Provider or modified by the

Commission pursuant to applicable

Federal laws, regulations and policies,

and may be revised upon written

notice to the Transmission Customer.

3.0 The Transmission Provider will

charge the Network Customer a charge

equal to ten (10) times the highest

charge incurred during the preceding

twelve months for any use of the

Transmission Provider’s Transmission

System not in compliance with the

terms and conditions of Part III of this

Tariff.

Attachment I

Index of Network Integration

Transmission Service Customers

Customer Date of service

agreement

Attachment J

Provisions Specific To The

Transmission Provider

1.0 Change of Rates

Rates applicable under the Service

Agreements shall be subject to change

by Western in accordance with

appropriate rate adjustment procedures.

If at any time the United States

promulgates a rate changing a rate then

in effect under a Service Agreement, it

will promptly notify the Transmission

Customer thereof. Rates shall become

effective as to the Service Agreements as

of the effective date of such rate. The

Transmission Customer, by written

notice to the Transmission Provider

within ninety (90) days after the

effective date of a rate change, may elect

to terminate the service billed by the

Transmission Provider under the new

rate. Said termination shall be effective

on the last day of the billing period

requested by the Transmission

Customer not later than two (2) years

after the effective date of the new rate.

Service provided by the Transmission

Provider shall be paid for at the new

rate regardless of whether the

Transmission Customer exercises the

option to terminate service.

2.0 Contingent Upon Appropriations

Where activities provided for in the

Service Agreement extend beyond the

current fiscal year, continued

expenditures by the Transmission

Provider are contingent upon Congress

making necessary appropriations

required for the continued performance

of the Transmission Provider’s

obligations under the Service

Agreement. In the event that such

appropriation by Congress is not made,

The Transmission Customer hereby

releases the Transmission Provider from

its obligations under the Service

Agreement and from all liability due to

the failure of Congress to make such

appropriation.

3.0 Covenant Against Contingent Fees

The Transmission Customer warrants

that no person or selling agency has

been employed or retained to solicit or

secure the Service Agreement upon a

contract or understanding for a

commission, percentage, brokerage, or

contingent fee, excepting bona fide

employees or bona fide established

commercial or selling agencies

maintained by the Transmission

Customer for the purpose of securing

business. For breach or violation of this

warranty, the Transmission Provider

shall have the right to annul the Service

Agreement without liability or in its

discretion to deduct from the Service

Agreement price or consideration the

full amount of such commission,

percentage, brokerage, or contingent fee.

4.0 Contract Work Hours and Safety

Standards

The Service Agreement, to the extent

that it is of a character specified in

Section 103 of the Contract Work Hours

and Safety Standards Act (Act), 40

U.S.C. § 329 (1986), is subject to the

provisions of the Act, 40 U.S.C. §§ 327–

333 (1986), and to regulations

promulgated by the Secretary of Labor

pursuant to the Act.

5.0 Equal Opportunity Employment

Practices

Section 202 of Executive Order No.

11246, 43 Fed. Reg. 46501 (1978), which

provides, among other things, that the

Transmission Customer will not

discriminate against any employee or

applicant for employment because of

race, color, religion, sex, or national

origin, is incorporated by reference in

the Service Agreement.

6.0 Use of Convict Labor

The Transmission Customer agrees

not to employ any person undergoing

sentence of imprisonment in performing

the Service Agreement except as

provided by 18 U.S.C. 4082(c)(2) and

Executive Order 11755, December 29,

1973.

7.0 Independent System Operator

The Parties understand that the

Transmission Provider may join an

Independent System Operator. An

Independent System Operator (ISO) is

defined as a Commission regulated

control area operator of the ISO

transmission grid. Its responsibilities

include providing non-discriminatory

access, managing congestion, and

maintaining the reliability and security

of the grid. In the event the

Transmission Provider either joins or is

required to conform to protocols of the

Independent System Operator, the
50604 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

Parties agree that the Transmission

Provider either may (1) modify the

relevant provisions of the Tariff and the

Service Agreement to conform them to

the terms and conditions required by

the Independent System Operator, or (2)

terminate the Service Agreement by

providing a one-year written notice to

the Transmission Customer.

8.0 Third Party Rights

The Service Agreements shall not be

construed to create rights in, or to grant

remedies to, or delegate any duty,

obligation, or undertaking established

therein to any third party as a

beneficiary to such Service Agreement.

9.0 Entire Agreement

The Service Agreements, including

the Tariff, together with the

specifications under such Service

Agreement and any completed

scheduling forms shall constitute the

entire understanding between the

Transmission Provider and the

Transmission Customer with respect to

Transmission Service thereunder.

10.0 Power Supply Obligations

The Transmission Provider shall not

be obligated to supply capacity and

energy from its own sources or from its

purchases from other neighboring

systems during Interruptions or

Curtailments in the delivery by the

Transmission Provider or delivery to the

Transmission Provider by the Delivering

Party of capacity and energy for

Transmission Service hereunder, and

nothing in the Service Agreement or in

the Transmission Customer’s

agreements with others shall have the

effect of making, nor shall anything in

the Service Agreement or said

agreements with others be construed to

require the Transmission Provider to

take any action which would make the

Transmission Provider, directly or

indirectly, a source of power supply to

the Transmission Customer, to any

Delivering Party or Receiving Party, or

to any ultimate recipient other than

through the provision of Operating

Reserve Service and emergency power.

11.0 Federal Law

Performance under the Tariff and

Service Agreement shall be governed by

applicable Federal law.

12.0 Continuing Obligations

The applicable provisions of the

Service Agreement will continue in

effect after termination of the Service

Agreement to the extent necessary to

provide for final billing, billing

adjustments and payments, and with

respect to liability and indemnification

from acts or events that occurred while

this Service Agreement was in effect.

13.0 Net Billing

Payments due the Transmission

Provider by a Transmission Customer

may, at the Transmission Provider’s

discretion, be offset against payments

due the Transmission Customer by the

Transmission Provider for the use of

transmission facilities, operation and

maintenance of electric facilities, and

other services. Net billing for the sale or

exchange of electric capacity and energy

will be as mutually agreed. For services

included in net billing procedures,

payments due one Party in any month

shall be offset against payments due the

other Party in such month, and the

resulting net balance shall be paid to the

Party in whose favor such balance

exists. The Parties shall exchange such

reports and information that either Party

requires for billing purposes. Net billing

shall not be used for any amounts due

which are in dispute.

14.0 Bill Crediting

As agreed in the Service Agreement,

payments due the Transmission

Provider by a Transmission Customer

shall be paid by a Transmission

Customer to a third party when so

directed by the Transmission Provider.

Any third party designated to receive

payment in lieu of the Transmission

Provider, and the amount to be paid to

that party, will be so identified in

writing to a Transmission Customer

with the monthly power bill. The

payment to the third party shall be due

and payable by the payment due date

specified on the Transmission

Provider’s bill. When remitting payment

to a designated third party, a

Transmission Customer shall indicate

that such payment is being made on

behalf of the Transmission Provider.

The Transmission Provider shall credit

a Transmission Customer for the

amount paid as if payment had been

made directly to the Transmission

Provider. All other payment provisions

shall remain in full force and effect.

Attachment K

Transmission Provider Authorities And

Obligations

Western Area Power Administration

(Western) was established on December

21, 1977, pursuant to Section 302 of the

Department of Energy (DOE)

Organization Act, Public Law 95-91,

dated August 4, 1977. Western’s

primary and long-standing mission is to

market Federal power resources with

emphasis on maintaining an efficient

and reliable power system. Western is a

partial requirements power supplier that

markets and transmits Federal power

resources in 15 Central and Western

States encompassing a geographic area

of 3.38 million-square-kilometers (1.3

million-square-miles). Western has four

Customer Service Regional Offices and

the Colorado River Storage Project

Customer Service Center, each referred

to in the Tariff as Regional Office.

Western markets power and provides

transmission service from various multipurpose hydroelectric projects and one

coal-fired power plant in Arizona.

Western will sell transmission service

using Federally owned or controlled

facilities only to the extent that

transmission capacity is available in

excess of that needed to deliver Federal

power.

Western is not a public utility under

Sections 205 and 206 of the Federal

Power Act and is not specifically subject

to the requirements of the Federal

Energy Regulatory Commission’s (FERC

or Commission) Final Orders 888 and

888-A. Western is a transmitting utility

subject to Section 211 of the Federal

Power Act as amended by the Energy

Policy Act of 1992. The Department of

Energy has issued a Power Marketing

Administration Open Access

Transmission Policy that supports the

intent of the FERC Notice of Proposed

Rulemaking for Open Access

Transmission.

Western’s Regional Offices reserved

transmission capacity shall include

capacity sufficient to deliver Federal

power resources, including statutory

and firm electric service and project use

power. The Tariff is intended to provide

for transmission of non-Federal power

on the unused capacity of transmission

facilities under the jurisdiction or

control of each of Western’s Regional

Offices, as well as each Regional Office’s

use of those facilities for third party

sales, in a manner consistent with the

spirit and intent of FERC Orders 888

and 888–A.

By statute, Western markets Federal

power resources to Federal Customers,

defined for purposes of this Tariff to be

the statutory and firm electric service

customers and project use power users

of the Federal government. Western’s

transmission system was built primarily

to enable the delivery of Federal power

to satisfy contractual obligations, which

are generally only partial requirements.

Western interprets the term, ‘‘Native

Load Customers’’ as used under this

Tariff to be analogous to and the closest

equivalent of Western’s Federal

Customers. Western therefore will treat

its Federal Customers in a manner

analogous to the treatment of Native

Load Customers by public utilities.
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50605

Western is committed to providing

comparable open-access transmission

service to all customers. However,

nothing in this Tariff shall alter, amend

or abridge the statutory or contractual

obligations of Western to market and

deliver Federal power resources to

Federal Customers and to repay the

Federal investment in such projects.

Western has prepared this Tariff and

service agreements to provide

transmission service comparable to that

required of public utilities by FERC

Orders 888 and 888–A, and to

implement the spirit and intent of those

Orders consistent with the DOE Policy.

An entity desiring transmission service

from Western must comply with the

application procedures outlined herein.

The review and approval requirements

detailed herein will apply to all

requesting parties.

Western will perform the necessary

studies or assessments for evaluating

requests for transmission service as set

forth in the Tariff. Any facility

construction or interconnection

necessary to provide transmission

service will be subject to Western’s

General Requirements for

Interconnection which are available

upon request.

It is Western’s intent to provide Firm

and Non-Firm Point-to-Point

Transmission Service and Network

Integration Transmission Service

consistent with the Tariff. The specific

terms and conditions for providing

transmission service to a customer will

be included in a Service Agreement.

Operating Procedures, Available

Transmission Capacity (ATC), and

System Impact Methodology are defined

in the Attachments. Western’s rates are

developed under a separate public

process pursuant to applicable Federal

law and regulations. Therefore, rates

and charges for specific services will be

set forth in the appropriate Regional

rates schedules attached to each Service

Agreement.

Based on a reasonable level of risk,

Western has marketed the maximum

practical amount of power from each of

its projects, leaving little flexibility for

provision of additional power services.

Changes in water conditions frequently

affect the ability of hydroelectric

projects to meet obligations on a short

term basis. The unique characteristics of

the hydro resource, Western’s marketing

plans, and the limitations of the

resource due to changing water

conditions may limit Western’s ability

to provide generation-related services

including ancillary services and

redispatching using Federal hydro

resources.

Colorado River Storage Project

Customer Service Center

The Colorado River Storage Project

Customer Service Center (CRSP CSC),

located in Salt Lake City, Utah, markets

power from three Federal multipurpose

water development projects; the

Colorado River Storage Project, the

Collbran Project, and the Rio Grande

Project, collectively called the

Integrated Projects. The hydroelectric

facilities associated with these projects

include: Flaming Gorge and Fontelle

powerplants on the Green River; Blue

Mesa, Morrow Point, and Crystal

powerplants on the Gunnison River;

Upper and Lower Molina powerplants

of the Collbran Project in Western

Colorado; the largest of the CRSP

facilities, Glen Canyon power plant on

the Colorado River; and Elephant Butte

power plant, part of the Rio Grande

Project on the Rio Grande River in

South Central New Mexico. The CRSP

transmission system consists of highvoltage transmission lines and attendant

facilities extending from Arizona, into

New Mexico, through Colorado, and

into portions of Utah and Wyoming. The

CRSP CSC uses the CRSP transmission

system to meet its commitments to its

federal customers, point-to-point

transmission customers, and exchange

power contractors. The CRSP CSC must,

therefore, reserve sufficient

transmission capacity to meet these

long-term obligations. The CRSP CSC

also needs to reserve capacity in its

transmission system to enable it to

deliver power produced by the

Integrated Projects hydroelectric

powerplants during periods when flood

control water releases produce greater

than normal generation levels.

The CRSP office, located in Salt Lake

City, is a member of the Western

Regional Transmission Association and

Southwest Regional Transmission

Association and operates within the

Western Systems Coordinating Council.

The CRSP CSC does not operate a

control area and as such may be unable

to provide some or all of the services

under the Tariff from its Integrated

Projects hydroelectric resources,

including, but not limited to, ancillary

services and Network Integration

Transmission Service.

The CRSP CSC application processing

fee will be $1,600.

Desert Southwest Region

The Desert Southwest Region (DSR)

manages transmission facilities in the

states of Arizona, California, and

Nevada. These transmission facilities

were constructed for the primary

purpose of marketing power from the

Navajo Project for the Central Arizona

Project, Boulder Canyon Project and the

Parker-Davis Project. The Pacific

Northwest-Pacific Southwest Intertie

Project (Intertie), in which the DSR has

ownership rights and administers the

southern portion, is a part of the DSR

transmission facilities. Transmission

facilities of the Parker-Davis Project and

the Intertie Project are included in this

Tariff. The DSR transmission facilities

are integrated with transmission

facilities of several non-Federal entities.

DSR is a member of the Southwest

Regional Transmission Association and

the Western Regional Transmission

Association and its system is operated

in the Western Systems Coordinating

Council, and adheres to their criteria.

DSR manages a control area operations

center in its Desert Southwest Regional

Office. The DSR office and the control

area operations both are located in

Phoenix, Arizona.

The DSR application processing fee

will be $1,700.

Rocky Mountain Region

The Rocky Mountain Region (RMR)

manages transmission facilities in the

states of Colorado, Wyoming, Nebraska,

and Kansas which were constructed for

the primary purpose of marketing power

from the Pick-Sloan Missouri Basin

Program—Western Division. The RMR

office and control area operations center

is located in Loveland, Colorado. The

RMR is a member of the Western

Regional Transmission Association and

its system is operated in the Western

Systems Coordinating Council.

For RMR, the rates for Point-to-Point

and Network Integration Transmission

Service charged pursuant to the Tariff

will be calculated using the costs of the

transmission facilities of the Pick-Sloan

Missouri Basin Program—Western

Division. The rates for the ancillary

services will be calculated using the

costs of the generation facilities of the

Pick-Sloan Missouri Basin Program—

Western Division and the Fryingpan—

Arkansas Project.

The RMR application processing fee

will be $1,600.

Sierra Nevada Region

The Sierra Nevada Customer Service

Region (SNR), located in Folsom,

California, manages the Central Valley

Project (CVP) transmission facilities in

the state of California. These facilities

were constructed for the primary

purpose of marketing power resources

from the CVP. SNR also has ownership

rights to capacity in two multi-party

transmission systems, the Pacific

Northwest-Pacific Southwest Intertie

Project (Pacific AC Intertie), and the
50606 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

California-Oregon Transmission Project

(COTP). Congress authorized SNR’s

participation in the Pacific AC Intertie

for the purpose of importing power from

the Pacific Northwest. COTP rights were

acquired pursuant to Public Law 98–

630, primarily for the purpose of

delivering power to the United States

Department of Energy Laboratories (DOE

Labs) and Federal Fish and Wildlife

refuges. Long-term use of the Pacific AC

Intertie and COTP by third parties is

restricted under existing contracts. SNR

is a member of the Western Regional

Transmission Association regional

transmission group and operates within

the Western Systems Coordinating

Council reliability council.

The SNR does not operate a control

area and as such may be unable to

provide some or all of the services

under the Tariff, including but not

limited to, ancillary services and

Network Integration Transmission

Service.

The SNR application processing fee

will be $1,300.

Upper Great Plains Region

The Upper Great Plains Region

(UGPR) manages transmission facilities

in the states of Montana, North Dakota,

South Dakota, Nebraska, Minnesota, and

Iowa which were constructed for the

primary purpose of marketing power

from the Pick-Sloan Missouri Basin

Program—Eastern Division. The UGPR

office is located in Billings, Montana.

The UGPR manages a control area

operations center in Watertown, South

Dakota. The eastern portion of the UGPR

system is operated in the Mid-Continent

Area Power Pool (MAPP) reliability

council. The western portion of the

system is operated in the Western

Systems Coordinating Council.

The UGPR transmission facilities are

integrated with the transmission

facilities of Basin Electric Power

Cooperative (Basin) and Heartland

Consumers Power District (Heartland)

such that transmission services are

provided over an integrated

transmission system. UGPR rates for

Point-to-Point and Network Integration

Transmission Service charged pursuant

to the Tariff will be calculated using the

costs of the transmission facilities of

UGPR, Basin, and Heartland that are

included in the Transmission System.

This Transmission System is also called

the Integrated System (IS) and the rates

are identified as IS Rates. The

integration of these facilities as the IS

and the use of the IS rates have been

approved by the Administrator of

Western through December 19, 1997.

The definition of the Transmission

System and the rates for Point-To-Point

and Network Integration Transmission

Service may be subject to change upon

conclusion of an Open Access

Transmission Service rate development

process conducted pursuant to

applicable Federal Law and regulations.

Both Basin and Heartland also own

generating facilities and must commit to

deliver the output of those resources to

their respective members. Basin and

Heartland will therefore reserve

sufficient capacity in their transmission

facilities to deliver that output.

Any Transmission Customer taking

service under these Guidelines shall be

subject to a Stranded Cost Charge

payable to either UGPR, Basin or

Heartland if such service is used for the

transmission of power or energy that

replaces wholly or in part, power or

energy supplied by Western, Basin or

Heartland respectively.

The Stranded Cost Charge of Basin

shall be applicable regardless of

whether the transmission relates to

power and/or energy that is purchased

by or on behalf of a Generation and

Transmission Cooperative member of

Basin (G&T), a Distribution Cooperative

member of Basin or G&T, or a retail

customer of a Distribution Cooperative

member of Basin or a G&T.

The Stranded Cost Charge of

Heartland shall be applicable whether

the transmission service relates to

power and/or energy that is purchased

by or on behalf of a municipal customer

of Heartland or a retail customer of a

municipal customer of Heartland.

Stranded costs will be recovered only

from a Transmission Customer who

obtains transmission service under

access rights granted through the

Transmission Provider’s compliance

tariff developed pursuant to FERC Final

Orders 888 and 888–A and causes either

UGPR, Basin or Heartland to incur

stranded costs. Stranded costs will be

recovered through the terms and

conditions of a separate contract entered

into either by UGPR and the

Transmission Customer or Basin and the

Transmission Customer or Heartland

and the Transmission Customer.

The UGPR application processing fee

will be $1,700.

[FR Doc. 97–25332 Filed 9–25–97; 8:45 am]

BILLING CODE 6450–01–P

ENVIRONMENTAL PROTECTION

AGENCY

[FRL–5898–9]

Agency Information Collection

Activities: Submission for OMB

Review; Comment Request;

Information Collection Request for Iron

and Steel Foundries

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Notice.

SUMMARY: In compliance with the

Paperwork Reduction Act (44 U.S.C.

3501 et seq.), this notice announces that

the following Information Collection

Request (ICR) has been forwarded to the

Office of Management and Budget

(OMB) for review and approval:

Information Collection Request for Iron

and Steel Foundries, EPA ICR Number

1809.01. The ICR describes the nature of

the information collection and its

expected burden and cost; where

appropriate, it includes the actual data

collection instrument.

DATES: Comments must be submitted on

or before October 27, 1997.

FOR FURTHER INFORMATION OR A COPY

CALL: Sandy Farmer at EPA, (202) 260–

2740, and refer to EPA ICR No 1809.01.

SUPPLEMENTARY INFORMATION:

Title: Information Collection Request

for Iron and Steel Foundries; EPA ICR

No. 1809.01. This is a new collection.

Affected entities: Entities potentially

affected by this action are iron and steel

foundries, which are facilities primarily

engaged in manufacturing iron and steel

castings. The Standard Industrial

Classification (SIC) codes for these

facilities include 3321 (gray and ductile

iron foundries), 3322 (malleable iron

foundries), 3324 (steel investment

foundries), and 3325 (steel foundries,

not elsewhere classified).

Abstract: The EPA is charged under

section 112 of the Clean Air Act (the

Act) with developing national emission

standards for listed hazardous air

pollutants (HAP). Preliminary

information indicates that there are

major sources of HAP in the iron and

steel foundry source categories. These

categories were listed pursuant to

section 112(c) of the Act on July 16,

1992, and section 112(d) of the Act

requires the Administrator to

promulgate regulations establishing

emission standards for this source

category. Standards must be

promulgated by November 15, 2000.

The responses to the survey are

mandatory and are being collected

under the authority of section 114 of the

Act.