Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50307

service on all persons listed on the

service list prepared by the Commission

in this proceeding, in accordance with

18 CFR 4.34(b), and 385.2010.

Lois D. Cashell,

Secretary.

[FR Doc. 97–25385 Filed 9–24–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

Notice of Application Tendered for

Filing With the Commission (Major

License)

September 19, 1997.

Take notice that the following

hydroelectric application has been filed

with the Commission and is available

for public inspection:

a. Type of Application: Major License.

b. Project No.: P–2004–073.

c. Date Filed: September 2, 1997.

d. Applicant: Holyoke Water Power

Company.

e. Name of Project: Holyoke

Hydroelectric Project.

f. Location: On the Connecticut River

in Hampden, Hampshire, and Franklin

Counties, Massachusetts.

g. Filed Pursuant to: Federal Power

Act, 16 U.S.C. 791(a)–825(r).

h. Applicant Contact:

Ronald G. Chevalier, Vice President,

Holyoke Water Power Company, P.O.

Box 270, Hartford, CT 06141–0270,

(860) 665–5315

James J. Kearns, Project Manager,

Northeast Utilities Service Company,

P.O. Box 270, Hartford, CT 06141–

0270, (860) 665–5936

Catherine E. Shively, Counsel, Public

Service Company of New Hampshire,

1000 Elm Street, Manchester, NH

03105, (603) 634–2326

i. FERC Contact: Allan Creamer, (202)

219–0365.

j. Comment Date: 60 days from the

filing date shown in paragraph (c).

k. Description of Project:

The proposed run-of-river project

would consist of the following features:

(1) An approximately 1,000-foot-long

masonry dam to elevation 97.47 feet

NGVD, topped with a 3.1-foot-high

rubber dam; (2) upstream and

downstream fish passage facilities; (3) a

2,290-acre reservoir that extends

approximately 25 miles upstream; (4) a

three-level canal system adjacent to the

river with headgates at the dam; (5) six

separate hydroelectric facilities, named

Hadley Falls Station, Riverside Station,

Boatlock Station, Beebe-Holbrook Units,

Skinner Unit and Chemical Units, and,

except for the Hadley Falls Station

which has its intake structure adjacent

to the canal headgate structure, the

facilities withdraw water from the canal

system; (6) a total nameplate capacity of

43,756 kW; (7) transmission line

connections; and (9) appurtenant

facilities. The applicant estimates that

the total average annual generation

would be approximately 223,389 MWh.

l. With this notice, we are initiating

consultation with the Massachusetts

State Historic Preservation Officer

(SHPO), as required by section 106,

National Historic Preservation Act, and

the regulations of the Advisory Council

on Historic Preservation, 36 CFR 800.4.

m. Pursuant to § 4.32(b)(7) of 18 CFR

of the Commission’s regulations, if any

resource agency, Indian Tribe, or person

believes that an additional scientific

study should be conducted in order to

form an adequate factual basis for a

complete analysis of the application on

its merit, the resource agency, Indian

Tribe, or person must file a request for

a study with the Commission not later

than 60 days from the filing date and

serve a copy of the request on the

applicant.

Lois D. Cashell,

Secretary.

[FR Doc. 97–25386 Filed 9–24–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Southwestern Power Administration

Open Access Transmission Service

Tariff

AGENCY: Southwestern Power

Administration, DOE.

ACTION: Notice of proposed tariff.

SUMMARY: The Southwestern Power

Administration (Southwestern) is

proposing to adopt this Open Access

Transmission Service Tariff (Tariff) in

order to be consistent with the Federal

Energy Regulatory Commission (FERC)

Orders 888 and 888–A, to the extent

practicable and consistent with laws

and regulations applicable to

Southwestern’s activities.

DATES: The comment period on the

proposed Tariff will begin with the

publication of this notice in the Federal

Register and will end November 10,

1997. To be assured of consideration, all

written comments must be received by

the end of the comment period.

Southwestern has scheduled a public

meeting to discuss the proposed Tariff

on October 9, 1997, at 1:30 p.m., CDT,

in Tulsa, Oklahoma. An opportunity for

interested parties to make oral

comments on the proposed Tariff is

scheduled for October 20, 1997, at 1:30

p.m. CDT, also in Tulsa, Oklahoma.

ADDRESSES: Southwestern will hold its

public meetings at Southwestern’s

offices, Room 1402, Williams Center

Tower I, One West Third Street, Tulsa,

Oklahoma 74103. All copies of written

comments should be submitted to the

Assistant Administrator, Corporate

Operations, Southwestern Power

Administration, P.O. Box 1619, Tulsa,

Oklahoma, 74101.

FOR FURTHER INFORMATION CONTACT: Mr.

Forrest E. Reeves, Assistant

Administrator, Office of Corporate

Operations, Southwestern Power

Administration, U.S. Department of

Energy, P.O. Box 1619, Tulsa, OK

74101, (918) 595–6696. Electronic Mail:

Reeves@swpa.gov; Facsimile: (918) 595–

6656.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Procedures

II. Background

III. Summary of Changes from the FERC Pro

Forma Tariff

IV. Coordination with Adoption of Open

Access Transmission Rates

I. Procedures

After all public comments have been

considered, Southwestern will prepare a

final Tariff and publish it in the Federal

Register. Southwestern will submit this

final Tariff to FERC under a 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.

Interested parties will have an

opportunity to comment on the Tariff by

following appropriate procedures to

intervene with FERC. Southwestern will

make any necessary changes required by

the FERC declaratory order, and will

publish the final approved Tariff in the

Federal Register.

There will be a public meeting on

October 9, 1997, to discuss the proposed

tariff. In addition, persons interested in

attending the public meeting tentatively

scheduled for October 20, 1997, should

indicate in writing, by letter or facsimile

transmission (918–595–6656), on or

before October 15, 1997, of their intent

to appear. No meeting will be held if no

one indicates an intent to attend.

II. Background

Southwestern Power Administration

(Southwestern) was created by

Secretarial Order No. 1865, dated

August 31, 1943, as an agency of the

Department of the Interior, to carry out

the power marketing responsibilities

assigned to the Secretary of Interior by
50308 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

Executive Order 9366, dated July 30,

1943, and Order 9373, dated August 30,

1943. Section 5 of the Flood Control Act

of December 22, 1944 (58 Stat. 887, 890;

16 U.S.C. 825s) broadened the power

marketing responsibilities of the

Secretary of the Interior by placing in

him the responsibility for marketing the

electric power and energy generated at

reservoir projects built by and under the

control of the Department of the Army.

The U.S. Department of Energy was

created by an Act of the U.S. Congress

under the Department of Energy

Organization Act, Public Law 95–91,

dated August 4, 1977. Pursuant to

Sections 302(a) and 301(b) of such Act,

the functions of the Secretary of the

Interior and the Federal Power

Commission under Section 5 of the

Flood Control Act of 1944 which relate

to Southwestern were transferred to and

vested in the Secretary of Energy

effective October 1, 1977.

Under the said Section 5,

Southwestern is enjoined to market

power and energy generated at U.S.

Army Corps of Engineers dams to public

bodies and cooperatives, in such

manner as to encourage the most

widespread use of the resource, at the

lowest possible rates to consumers

consistent with sound business

principles. The dams from which

Southwestern currently markets power

and energy are located in the States of

Arkansas, Missouri, Oklahoma, and

Texas. By the nature of its hydroelectric

power resource, Southwestern is a

partial requirements supplier to 93

municipal, cooperative, and military

electric systems in the States of

Arkansas, Kansas, Louisiana, Missouri,

Oklahoma, and Texas. Southwestern

markets Federal power and energy and

owns and operates a transmission

system to integrate its hydroelectric

resources in order to reliably deliver

such power and energy. Southwestern

markets Transmission Services for the

transmission of non-Federal power and

energy across Southwestern’s

transmission system only to the extent

that capacity is available over and above

the capacity required to fulfill

Southwestern’s mission. Nothing in the

proposed Tariff is intended to alter,

amend, or abridge Southwestern’s

statutory obligation to market Federal

power and to repay the Federal

investment in the hydroelectric

generation projects from which it

markets power as well as the investment

in its associated transmission system.

The Federal Energy Regulatory

Commission (FERC) issued a Notice of

Proposed Rulemaking (NOPR) for Open

Access Transmission Service, published

at 60 FR 17662, on April 7, 1995. On

October 4, 1995, the Secretary,

Department of Energy (DOE), adopted a

‘‘Power Marketing Administration Open

Transmission Access Policy’’ in which

the Secretary states that DOE supports

the spirit and intent of the NOPR and

directs the Power Marketing

Administrations to prepare tariffs which

conform to the principles set forth in the

FERC’s final rule. FERC issued its final

rule, Order 888, published at 61 FR

21540, on May 10, 1996, and followed

with supplementary Order 888–A,

published at 62 FR 12273, on March 14,

1997. Southwestern’s Tariff includes an

Attachment J which is specific to

Southwestern and is not found in the

Pro Forma Tariff (Pro Forma) published

as Appendix B to FERC Order 888–A.

III. Summary of Changes from the

FERC Pro Forma Tariff

Southwestern has adopted the Pro

Forma as the basis for its open access

Tariff. However, Southwestern has

made a number of changes that it deems

necessary to reflect Southwestern’s

unique status as a Federal agency.

Southwestern describes this unique

status in an added Attachment J,

‘‘Authorities and Obligations,’’ to its

Tariff.

Southwestern has identified three

general areas of difference from the Pro

Forma in its Tariff that it believes are

necessary to adapt the Pro Forma to the

requirements of its unique status. These

differences are:

(1) FERC Jurisdictional Issues

Since Southwestern is not a

jurisdictional utility under the FERC,

provisions which are based on such

jurisdiction are deleted from the Pro

Forma. This general approach

necessitated deletions in Sections 1.10,

2.2, 9, 12.1, 13.3, 14.3, 20.3, 26, 29.5, 34,

and 34.5 of the Pro Forma. Since

Southwestern is not required to file its

service agreements with the FERC,

deletions and other changes were made

in Sections 1.45, 7.3, 13.4, 14.4, 15.3,

17.6, 19.3, 19.4, 29.1, 29.5, 32.3, and

32.4 of the Pro Forma.

(2) Impact of Federal Law and

Regulations.

Southwestern, as a Federal agency, is

subject to Federal laws, regulations, and

policies which supersede certain

provisions in the Pro Forma. This fact

accounts for most differences between

the Pro Forma and Southwestern’s

Tariff, which changes fall into three

general categories:

(a) General statements of

Southwestern’s requirements to conform

to Federal laws and regulations, or

references to specific Federal laws and

regulations, account for additions and

other changes to Sections 1.2, 10.2, 12.2,

18.2, 26, 34.5, Schedules 1 through 8 of

the Pro Forma, and the submission of a

new Attachment J.

(b) Under the Anti-Deficiency Act and

appropriations laws, Southwestern

cannot normally use appropriated funds

to do work for others. Likewise,

Southwestern is prohibited from

entering into contracts that obligate

expenditure of funds it does not have.

Finally, some kinds of work, such as

construction changes to facilities, are

specifically contingent on the

availability of funds to Southwestern, or

on its reimbursable authority to use

funds provided by customers, both of

which are provided in the Congressional

appropriations process. These

limitations caused additions and other

changes in Sections 13.5, 15.4, 19.1,

19.2, 19.4, 19.8, 20.3, 23.2, 28.2, 31.5,

32.1, 32.2, and 32.4 of the Pro Forma.

(c) Southwestern’s current financial

system and procedures make collecting

deposits for refund and providing for

the payment of interest on deposited

funds unduly burdensome.

Consequently, Southwestern has deleted

all references to deposits and their

return with interest. Southwestern has

substituted provisions for payment of a

processing fee to cover its costs in

evaluating applications for firm

transmission service arrangements of

one year or longer, or, in the event that

Southwestern is able to provide

Network Integration Transmission

Service, for applications for such

service. The sections of the original Pro

Forma which are affected by these

changes are: Sections 1.5, 17.3, 17.4,

20.3, 22.2, 29.2, 31.5, 32.1, and 32.4.

(3) Operational Considerations

Southwestern has certain operational

considerations that require changes to

the Pro Forma.

(a) The development and filing of

Southwestern’s rates are dictated by

Federal law and regulations separate

and apart from the Tariff. Rate

Schedules, as required by such laws and

regulations, will be attached to Service

Agreements in place of or in addition to

Schedules 1 through 8. Thus, changes in

the language of Pro Forma Section 2.2,

and in Schedules 1 through 8 were

required.

(b) Southwestern’s primary mission is

to market Federal power. The nature of

this resource—hydroelectric power

generation—may, under certain

hydrological conditions, restrict

Southwestern’s ability to provide some

Ancillary Services which support the

transmission of non-Federal power and

energy. This limitation is recognized in
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50309

changes to Section 3 and Schedules 3

through 6 of the Pro Forma.

(c) Southwestern added language to

Section 10.1 to provide for notice

between the Parties where Force

Majeure renders either Party unable to

fulfill obligations under the Service

Agreement.

(d) Sections 15.7 and 28.5 cover Real

Power Losses, which Southwestern

normally addresses in Service

Agreements. Changes were made to

these Sections to acknowledge such

practice.

(e) Section 19.2(iii) of the Pro Forma

is changed from an internal reference to

Section 20 to a reference to Section 8,

which is more pertinent to

Southwestern’s administrative

procedures.

Attachments

For Attachments A, B, and F, which

are the form of the Service Agreements

associated with the Tariff, Southwestern

has elected to describe its proposed

agreements, for Firm Transmission

Service (2 types, for long- and shortterm arrangements); for Non-Firm

Transmission Service; and for Network

Integration Transmission Service, in

general terms rather than to publish

specific contract language.

Southwestern’s practice is to develop

standard contracts and to evolve

language, especially for new operational

arrangements, over time. Changes, if

any, become part of the new standard

language as such provisions evolve.

Also, as a Federal agency, Southwestern

has a number of provisions which are

required to be in all its contracts but

which are not directly pertinent to

offering transmission service.

Southwestern considers maintaining

flexibility to allow continuous

improvements in its contract language

to be good policy. Therefore,

Southwestern has described the contract

forms rather than prescribed them.

Additionally, this approach avoids

unnecessary burdening of the filing and

notice processes for the Tariff by

omitting from the text of the Tariff

standard, general provisions which are

not directly germane to the issue of

open access for transmission services.

In Attachments C and D,

Southwestern acknowledges that, as a

member of the Southwest Power Pool,

Southwestern’s methodology for

determining Available Transfer

Capability and performing System

Impact Studies will follow the

methodology of the Southwest Power

Pool, which is readily and publicly

available.

Attachments G and H will permit

Southwestern to provide Network

Integration Transmission Service, if

such service is requested, and if

Southwestern’s Transmission System is

determined to be capable of providing

such service. Southwestern has no

present arrangements equivalent to

Network Service. In the absence of any

particular request for Network

Integration Transmission Service,

Southwestern has not yet determined

whether Network Service is practicable

on its system. Until such determination

is made, Southwestern deemed it

advisable to prepare these attachments

with very general language.

Attachment J was developed by

Southwestern to describe its authorities

and obligations as a Federal Power

Marketing Administration. Such

authorities and obligations are

significantly different from the

authorities and obligations of the public

utilities for which the Pro Forma was

developed, and this Attachment sets

forth such differences. Attachments E

and I, which are indexes of firm and

network contracts, have been left blank.

IV. Coordination With Adoption of

Open Access Transmission Rates

Southwestern’s rate process is distinct

from the rate process used by public

utilities. This process, which includes

mandatory public participation

procedures, is described in 10 CFR 903.

Additionally, Southwestern’s rates are

reviewed by the FERC under different

parameters than those used for review of

public utility rates. Southwestern is

presently in the process of preparing

new rate schedules for a FERC filing,

and expects such new rates to be

implemented January 1, 1998. The

proposed rate schedules for

Transmission Service will be structured

in general accordance with the Pro

Forma and Southwestern’s Tariff. The

new rate schedules will be attached to

Service Agreements executed under the

Tariff.

Review Under Executive Order 12866

Southwestern has an exemption from

centralized regulatory review under

Executive Order 12866; accordingly, no

clearance of this notice by the Office of

Management and Budget (OMB) is

required.

Review Under the Regulatory Flexibility

Act

The Regulatory Flexibility Act, 5

U.S.C. 601 et seq., requires Federal

agencies to perform a regulatory

flexibility analysis if a proposed

regulation is likely to have a significant

economic impact on a substantial

number of small entities. By the

execution of this Federal Register

notice, the Administrator,

Southwestern, certifies that no

significant economic impact on a

substantial number of small entities will

occur.

A redline/strikeout comparison of

Southwestern’s proposed Tariff to the

FERC Pro Forma is available on the

Internet at http://www.swpa.gov.

Dated: September 15, 1997.

Michael A. Deihl,

Administrator.

Southwestern Power Administration

Open Access Transmission Service

Tariff

Table of Contents

Part I. Common Service Provisions

1 Definitions

1.1 Ancillary Services

1.2 Annual Transmission Costs

1.3 Application

1.4 Commission

1.5 Completed Application

1.6 Control Area

1.7 Curtailment

1.8 Delivering Party

1.9 Designated Agent

1.10 Direct Assignment Facilities

1.11 Eligible Customer

1.12 Facilities Study

1.13 Firm Point-To-Point Transmission

Service

1.14 Good Utility Practice

1.15 Interruption

1.16 Load Ratio Share

1.17 Load Shedding

1.18 Long-Term Firm Point-To-Point

Transmission Service

1.19 Native Load Customers

1.20 Network Customer

1.21 Network Integration Transmission

Service

1.22 Network Load

1.23 Network Operating Agreement

1.24 Network Operating Committee

1.25 Network Resource

1.26 Network Upgrades

1.27 Non-Firm Point-To-Point

Transmission Service

1.28 Open Access Same-Time

Information System

1.29 Part I

1.30 Part II

1.31 Part III

1.32 Parties

1.33 Point(s) of Delivery

1.34 Point(s) of Receipt

1.35 Point-To-Point Transmission Service

1.36 Power Purchaser

1.37 Receiving Party

1.38 Regional Transmission Group

1.39 Reserved Capacity

1.40 Service Agreement

1.41 Service Commencement Date

1.42 Short-Term Firm Point-To-Point

Transmission Service

1.43 System Impact Study

1.44 Third-Party Sale

1.45 Transmission Customer

1.46 Transmission Provider
50310 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

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 Obligation

24.2 Transmission Provider Access to

Metering Data

24.3 Power Factor

25 Compensation for Transmission Service

26 Stranded Cost Recovery

27 Compensation for New Facilities and

Redispatch Costs

Part III. Network Integation Transmission

Service

Preamble

28 Nature of Network Integration

Transmission Service

28.1 Scope of Service

28.2 Transmission Provider

Responsibilities

28.3 Network Integration Transmission

Service

28.4 Secondary Service

28.5 Real Power Losses

28.6 Restrictions on Use of Service

29 Initiating Service

29.1 Condition Precedent for Receiving

Service

29.2 Application Procedures

29.3 Technical Arrangements To Be

Completed Prior to Commencement of

Service

29.4 Network Customer Facilities

29.5 This section is intentionally left

blank

30 Network Resources

30.1 Designation of Network Resources

30.2 Designation of New Network

Resources

30.3 Termination of Network Resources

30.4 Operation of Network Resources

30.5 Network Customer Redispatch

Obligation

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With The Transmission

Provider

30.7 Limitation on Designation of

Network Resources

30.8 Use of Interface Capacity by the

Network Customer

30.9 Network Customer Owned

Transmission Facilities

31 Designation of Network Load

31.1 Network Load

31.2 New Network Loads Connected With

the Transmission Provider

31.3 Network Load Not Physically

Interconnected with the Transmission

Provider

31.4 New Interconnection Points

31.5 Changes in Service Requests

31.6 Annual Load and Resource

Information Updates

32 Additional Study Procedures For

Network Integration Transmission

Service Requests
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50311

32.1 Notice of Need for System Impact

Study

32.2 System Impact Study Agreement and

Compensation

32.3 System Impact Study Procedures

32.4 Facilities Study Procedures

33 Load Shedding and Curtailments

33.1 Procedures

33.2 Transmission Constraints

33.3 Cost Responsibility for Relieving

Transmission Constraints

33.4 Curtailments of Scheduled

Deliveries

33.5 Allocation of Curtailments

33.6 Load Shedding

33.7 System Reliability

34 Rates and Charges

34.1 Monthly Demand Charge

34.2 Determination of Network

Customer’s Monthly Network Load

34.3 Determination of Transmission

Provider’s Monthly Transmission System

Load

34.4 Redispatch Charge

34.5 Stranded Cost Recovery

35 Operating Arrangements

35.1 Operation under The Network

Operating Agreement

35.2 Network Operating Agreement

35.3 Network Operating Committee

Schedule 1—Scheduling, System Control

and Dispatch Service

Schedule 2—Reactive Supply and Voltage

Control from Generation Sources Service

Schedule 3—Regulation and Frequency

Response Service

Schedule 4—Energy Imbalance Service

Schedule 5—Operating Reserve—Spinning

Reserve Service

Schedule 6—Operating Reserve—

Supplemental Reserve Service

Schedule 7—Long-Term Firm and ShortTerm Firm Point-to-Point Transmission

Service

Schedule 8—Non-Firm Point-to-Point

Transmission Service

Attachment A—Form of Service Agreement

For Firm Point-to-Point Transmission

Service

Attachment B—Form of Service Agreement

For Non-Firm Point-to-Point

Transmission Service

Attachment C—Methodology to Assess

Available Transmission Capability

Attachment D—Methodology for

Completing a System Impact Study

Attachment E—Index of Point-to-Point

Transmission Service Customers

Attachment F—Form of Service Agreement

For Network Integration Transmission

Service

Attachment G—Network Operating

Agreement

Attachment H—Annual Transmission

Revenue Requirement For Network

Integration Transmission Service

Attachment I—Index of Network

Integration Transmission Service

Customers

Attachment J—Authorities and Obligations

Southwestern Power Administration

Open Access Transmission Service

Tariff

Part I. Common Service Provisions

1 Definitions

1.1 Ancillary Services: Those

services that are necessary to support

the transmission of capacity and energy

from resources to loads while

maintaining reliable operation of the

Transmission Provider’s Transmission

System in accordance with Good Utility

Practice.

1.2 Annual Transmission Costs: The

total annual cost of the Transmission

System for purposes of Network

Integration Transmission Service shall

be the amount specified in Attachment

H until amended by the Transmission

Provider or modified by the

Commission, pursuant to Federal law.

1.3 Application: A request by an

Eligible Customer for transmission

service pursuant to the provisions of the

Tariff.

1.4 Commission: The Federal Energy

Regulatory Commission.

1.5 Completed Application: An

Application that satisfies all of the

information and other requirements of

the Tariff, including any required

application processing fee.

1.6 Control Area: An electric power

system or combination of electric power

systems to which a common automatic

generation control scheme is applied in

order to:

(1) Match, at all times, the power

output of the generators within the

electric power system(s) and capacity

and energy purchased from entities

outside the electric power system(s),

with the load within the electric power

system(s);

(2) Maintain scheduled interchange

with other Control Areas, within the

limits of Good Utility Practice;

(3) Maintain the frequency of the

electric power system(s) within

reasonable limits in accordance with

Good Utility Practice; and

(4) Provide sufficient generating

capacity to maintain operating reserves

in accordance with Good Utility

Practice.

1.7 Curtailment: A reduction in firm

or non-firm transmission service in

response to a transmission capacity

shortage as a result of system reliability

conditions.

1.8 Delivering Party: The entity

supplying capacity and energy to be

transmitted at Point(s) of Receipt.

1.9 Designated Agent: Any entity

that performs actions or functions on

behalf of the Transmission Provider, an

Eligible Customer, or the Transmission

Customer required under the Tariff.

1.10 Direct Assignment Facilities:

Facilities or portions of facilities that are

constructed by the Transmission

Provider for the sole use/benefit of a

particular Transmission Customer

requesting service under the Tariff.

Direct Assignment Facilities shall be

specified in the Service Agreement that

governs service to the Transmission

Customer.

1.11 Eligible Customer: (i) Any

electric utility (including the

Transmission Provider and any power

marketer), Federal power marketing

agency, or any person generating

electric energy for sale for resale is an

Eligible Customer under the Tariff.

Electric energy sold or produced by

such entity may be electric energy

produced in the United States, Canada

or Mexico. However, with respect to

transmission service that the

Commission is prohibited from ordering

by Section 212(h) of the Federal Power

Act, such entity is eligible only if the

service is provided pursuant to a state

requirement that the Transmission

Provider offer the unbundled

transmission service, or pursuant to a

voluntary offer of such service by the

Transmission Provider. (ii) Any retail

customer taking unbundled

transmission service pursuant to a state

requirement that the Transmission

Provider offer the transmission service,

or pursuant to a voluntary offer of such

service by the Transmission Provider is

an Eligible Customer under the Tariff.

1.12 Facilities Study: An

engineering study conducted by the

Transmission Provider to determine the

required modifications to the

Transmission Provider’s Transmission

System, including the cost and

scheduled completion date for such

modifications, that will be required to

provide the requested transmission

service.

1.13 Firm Point-To-Point

Transmission Service: Transmission

Service under this Tariff that is reserved

and/or scheduled between specified

Points of Receipt and Delivery pursuant

to Part II of this Tariff.

1.14 Good Utility Practice: Any of

the practices, methods and acts engaged

in or approved by a significant portion

of the electric utility industry during the

relevant time period, or any of the

practices, methods and acts which, in

the exercise of reasonable judgment in

light of the facts known at the time the

decision was made, could have been

expected to accomplish the desired

result at a reasonable cost consistent

with good business practices, reliability,

safety and expedition. Good Utility
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Practice is not intended to be limited to

the optimum practice, method, or act to

the exclusion of all others, but rather to

be acceptable practices, methods, or acts

generally accepted in the region.

1.15 Interruption: A reduction in

non-firm transmission service due to

economic reasons pursuant to Section

14.7.

1.16 Load Ratio Share: Ratio of a

Transmission Customer’s Network Load

to the Transmission Provider’s total load

computed in accordance with Sections

34.2 and 34.3 of the Network Integration

Transmission Service under Part III of

the Tariff and calculated on a rolling

twelve month basis.

1.17 Load Shedding: The systematic

reduction of system demand by

temporarily decreasing load in response

to transmission system or area capacity

shortages, system instability, or voltage

control considerations under Part III of

the Tariff.

1.18 Long-Term Firm Point-To-Point

Transmission Service: Firm Point-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 an

Eligible Customer has elected not to

designate a particular load at discrete

points of delivery as Network Load, the

Eligible Customer is responsible for

making separate arrangements under

Part II of the Tariff for any Point-ToPoint Transmission Service that may be

necessary for such non-designated load.

1.23 Network Operating Agreement:

An executed agreement that contains

the terms and conditions under which

the Network Customer shall operate its

facilities and the technical and

operational matters associated with the

implementation of Network Integration

Transmission Service under Part III of

the Tariff.

1.24 Network Operating Committee:

A group made up of representatives

from the Network Customer(s) and the

Transmission Provider established to

coordinate operating criteria and other

technical considerations required for

implementation of Network Integration

Transmission Service under Part III of

this Tariff.

1.25 Network Resource: Any

designated generating resource owned,

purchased, or leased by a Network

Customer under the Network Integration

Transmission Service Tariff. Network

Resources do not include any resource,

or any portion thereof, that is committed

for sale to third parties or otherwise

cannot be called upon to meet the

Network Customer’s Network Load on a

non-interruptible basis.

1.26 Network Upgrades:

Modifications or additions to

transmission-related facilities that are

integrated with and support the

Transmission Provider’s overall

Transmission System for the general

benefit of all users of such Transmission

System.

1.27 Non-Firm Point-To-Point

Transmission Service: Point-To-Point

Transmission Service under the Tariff

that is reserved and scheduled on an asavailable basis and is subject to

Curtailment or Interruption as set forth

in Section 14.7 under Part II of the

Tariff. Non-Firm Point-To-Point

Transmission Service is available on a

stand-alone basis for periods ranging

from one hour to one month.

1.28 Open Access Same-Time

Information System (OASIS): The

information system and standards of

conduct contained in Part 37 of the

Commission’s regulations and all

additional requirements implemented

by subsequent Commission orders

dealing with OASIS.

1.29 Part I: Tariff Definitions and

Common Service Provisions contained

in Sections 2 through 12.

1.30 Part II: Tariff Sections 13

through 27 pertaining to Point-To-Point

Transmission Service in conjunction

with the applicable Common Service

Provisions of Part I and appropriate

Schedules and Attachments.

1.31 Part III: Tariff Sections 28

through 35 pertaining to Network

Integration Transmission Service in

conjunction with the applicable

Common Service Provisions of Part I

and appropriate Schedules and

Attachments.

1.32 Parties: The Transmission

Provider and the Transmission

Customer receiving service under the

Tariff.

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

the Transmission Provider’s

Transmission System where capacity

and energy transmitted by the

Transmission Provider will be made

available to the Receiving Party under

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

Delivery shall be specified in the

Service Agreement for Long-Term Firm

Point-to-Point Transmission Service.

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

interconnection on the Transmission

Provider’s Transmission System where

capacity and energy will be made

available to the Transmission Provider

by the Delivering Party under Part II of

the Tariff. The Point(s) of Receipt shall

be specified in the Service Agreement

for Long-Term Firm Point-to-Point

Transmission Service.

1.35 Point-To-Point Transmission

Service: The reservation and

transmission of capacity and energy on

either a firm or non-firm basis from the

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

Delivery under Part II of the Tariff.

1.36 Power Purchaser: The entity

that is purchasing the capacity and

energy to be transmitted under the

Tariff.

1.37 Receiving Party: The entity

receiving the capacity and energy

transmitted by the Transmission

Provider to Point(s) of Delivery.

1.38 Regional Transmission Group

(RTG): A voluntary organization of

transmission owners, transmission users

and other entities approved by the

Commission to efficiently coordinate

transmission planning (and expansion),

operation and use on a regional (and

interregional) basis.

1.39 Reserved Capacity: The

maximum amount of capacity and

energy that the Transmission Provider

agrees to transmit for the Transmission

Customer over the Transmission

Provider’s Transmission System

between the Point(s) of Receipt and the

Point(s) of Delivery under Part II of the

Tariff. Reserved Capacity shall be

expressed in terms of whole megawatts

on a sixty (60) minute interval

(commencing on the clock hour) basis.

1.40 Service Agreement: The initial

agreement and any amendments or

supplements thereto entered into by the

Transmission Customer and the

Transmission Provider for service under

the Tariff.

1.41 Service Commencement Date:

The date the Transmission Provider
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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-ToPoint Transmission Service: Firm PointTo-Point Transmission Service under

Part II of the Tariff with a term of less

than one year.

1.43 System Impact Study: An

assessment by the Transmission

Provider of (i) the adequacy of the

Transmission System to accommodate a

request for either Firm Point-To-Point

Transmission Service or Network

Integration Transmission Service and

(ii) whether any additional costs may be

incurred in order to provide

transmission service.

1.44 Third-Party Sale: Any sale for

resale in interstate commerce to a Power

Purchaser that is not designated as part

of Network Load under the Network

Integration Transmission Service.

1.45 Transmission Customer: Any

Eligible Customer (or its Designated

Agent) that (i) executes a Service

Agreement or (ii) requests in writing

that the Transmission Provider provide

transmission service without a Service

Agreement, pursuant to Section 15.3 of

the Tariff. This term is used in the Part

I Common Service Provisions to include

customers receiving transmission

service under Part II and Part III of this

Tariff.

1.46 Transmission Provider:

Southwestern Power Administration,

which owns, controls, or operates the

facilities used for the transmission of

electric energy in interstate commerce

and provides transmission service under

the Tariff.

1.47 Transmission Provider’s

Monthly Transmission System Peak:

The maximum firm usage of the

Transmission Provider’s Transmission

System in a calendar month.

1.48 Transmission Service: PointTo-Point Transmission Service provided

under Part II of the Tariff on a firm and

non-firm basis.

1.49 Transmission System: The

facilities owned, controlled or operated

by the Transmission Provider that are

used to provide transmission service

under Part II and Part III of the Tariff.

2 Initial Allocation and Renewal

Procedures

2.1 Initial Allocation of Available

Transmission Capability

For purposes of determining whether

existing capability on the Transmission

Provider’s Transmission System is

adequate to accommodate a request for

firm service under this Tariff, all

Completed Applications for new firm

transmission service received during the

initial sixty (60) day period

commencing with the effective date of

the Tariff will be deemed to have been

filed simultaneously. A lottery system

conducted by an independent party

shall be used to assign priorities for

Completed Applications filed

simultaneously. All Completed

Applications for firm transmission

service received after the initial sixty

(60) day period shall be assigned a

priority pursuant to Section 13.2.

2.2 Reservation Priority For Existing

Firm Service Customers

Existing firm service customers

(wholesale requirements and

transmission-only, with a contract term

of one-year or more), have the right to

continue to take transmission service

from the Transmission Provider when

the contract expires, rolls over or is

renewed. This transmission reservation

priority is independent of whether the

existing customer continues to purchase

capacity and energy from the

Transmission Provider or elects to

purchase capacity and energy from

another supplier. If at the end of the

contract term, the Transmission

Provider’s Transmission System cannot

accommodate all of the requests for

transmission service, the existing firm

service customer must agree to accept a

contract term at least equal to a

competing request by any new Eligible

Customer and to pay the current rate for

such service. This transmission

reservation priority for existing firm

service customers is an ongoing right

that may be exercised at the end of all

firm contract terms of one-year or

longer.

3 Ancillary Services

Ancillary Services are needed with

transmission service to maintain

reliability within and among the Control

Areas affected by the transmission

service. The Transmission Provider is

required to provide (or offer to arrange

with the local Control Area operator as

discussed below), and the Transmission

Customer is required to purchase, the

following Ancillary Services (i)

Scheduling, System Control and

Dispatch, and (ii) Reactive Supply and

Voltage Control from Generation

Sources.

The Transmission Provider is

required, to the extent possible, to offer

to provide (or offer to arrange with the

local Control Area operator as discussed

below) the following Ancillary Services

only to the Transmission Customer

serving load within the Transmission

Provider’s Control Area (i) Regulation

and Frequency Response, (ii) Energy

Imbalance, (iii) Operating Reserve—

Spinning, and (iv) Operating Reserve—

Supplemental. The Transmission

Customer serving load within the

Transmission Provider’s Control Area is

required to acquire these Ancillary

Services, whether from the

Transmission Provider, from a third

party, or by self-supply. The

Transmission Customer may not decline

the Transmission Provider’s offer of

Ancillary Services unless it

demonstrates that it has acquired the

Ancillary Services from another source.

The Transmission Provider will offer to

provide Ancillary Services to the

Transmission Customer only to the

extent that surplus Federal generation is

available for such services. However,

the Transmission Provider may

purchase Ancillary Services from others

on behalf of the Transmission Customer

under the terms of an agreement

separate from the Service Agreement.

The costs of such purchases on behalf

of a Transmission Customer will be

passed directly through to that

Transmission Customer. The

Transmission Customer must list in its

Application which Ancillary Services it

will purchase from the Transmission

Provider.

If the Transmission Provider is a

utility providing transmission service,

but is not a Control Area operator, it

may be unable to provide some or all of

the Ancillary Services. In this case, the

Transmission Provider can fulfill its

obligation to provide Ancillary Services

by acting as the Transmission

Customer’s agent to secure these

Ancillary Services from the Control

Area operator. The Transmission

Customer may elect to: (i) Have the

Transmission Provider act as its agent,

(ii) secure the Ancillary Services

directly from the Control Area operator,

or (iii) secure the Ancillary Services

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

from a third party or by self-supply

when technically feasible.

The Transmission Provider shall

specify the rate treatment and all related

terms and conditions in the event of an

unauthorized use of Ancillary Services

by the Transmission Customer.

The specific Ancillary Services, prices

and/or compensation methods for each

are described on the Schedules that are

attached to and made a part of the

Tariff. Three principal requirements

apply to discounts for Ancillary

Services provided by the Transmission

Provider in conjunction with its

provision of transmission service as

follows: (1) Any offer of a discount

made by the Transmission Provider
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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 taxexempt bonds, as described in Section

142(f) of the Internal Revenue Code

(‘‘local furnishing bonds’’).

Notwithstanding any other provision of

this Tariff, the Transmission Provider

shall not be required to provide

transmission service to any Eligible

Customer pursuant to this Tariff if the

provision of such transmission service

would jeopardize the tax-exempt status

of any local furnishing bond(s) used to

finance the Transmission Provider’s

facilities that would be used in

providing such transmission service.

5.2 Alternative Procedures for

Requesting Transmission Service

(i) If the Transmission Provider

determines that the provision of

transmission service requested by an

Eligible Customer would jeopardize the

tax-exempt status of any local

furnishing bond(s) used to finance its

facilities that would be used in

providing such transmission service, it

shall advise the Eligible Customer

within thirty (30) days of receipt of the

Completed Application.

(ii) If the Eligible Customer thereafter

renews its request for the same

transmission service referred to in (i) by

tendering an application under Section

211 of the Federal Power Act, the

Transmission Provider, within ten (10)

days of receiving a copy of the Section

211 application, will waive its rights to

a request for service under Section

213(a) of the Federal Power Act and to

the issuance of a proposed order under

Section 212(c) of the Federal Power Act.

The Commission, upon receipt of the

Transmission Provider’s waiver of its

rights to a request for service under

Section 213(a) of the Federal Power Act

and to the issuance of a proposed order

under Section 212(c) of the Federal

Power Act, shall issue an order under

Section 211 of the Federal Power Act.

Upon issuance of the order under

Section 211 of the Federal Power Act,

the Transmission Provider shall be

required to provide the requested

transmission service in accordance with

the terms and conditions of this Tariff.

6 Reciprocity

A Transmission Customer receiving

transmission service under this Tariff

agrees to provide comparable

transmission service that it is capable of

providing to the Transmission Provider

on similar terms and conditions over

facilities used for the transmission of

electric energy owned, controlled or

operated by the Transmission Customer

and over facilities used for the

transmission of electric energy owned,

controlled or operated by the

Transmission Customer’s corporate

affiliates. A Transmission Customer that

is a member of a power pool or Regional

Transmission Group also agrees to

provide comparable transmission

service to the members of such power

pool and Regional Transmission Group

on similar terms and conditions over

facilities used for the transmission of

electric energy owned, controlled or

operated by the Transmission Customer

and over facilities used for the

transmission of electric energy owned,

controlled or operated by the

Transmission Customer’s corporate

affiliates.

This reciprocity requirement applies

not only to the Transmission Customer

that obtains transmission service under

the Tariff, but also to all parties to a

transaction that involves the use of

transmission service under the Tariff,

including the power seller, buyer and

any intermediary, such as a power

marketer. This reciprocity requirement

also applies to any Eligible Customer

that owns, controls or operates

transmission facilities that uses an

intermediary, such as a power marketer,

to request transmission service under

the Tariff. If the Transmission Customer

does not own, control or operate

transmission facilities, it must include

in its Application a sworn statement of

one of its duly authorized officers or

other representatives that the purpose of

its Application is not to assist an

Eligible Customer to avoid the

requirements of this provision.

7 Billing and Payment

7.1 Billing Procedure

Within a reasonable time after the first

day of each month, the Transmission

Provider shall submit an invoice to the

Transmission Customer for the charges

for all services furnished under the

Tariff during the preceding month. The

invoice shall be paid by the

Transmission Customer within twenty

(20) days of receipt. All payments shall

be made in immediately available funds

payable to the Transmission Provider, or

by wire transfer to a bank named by the

Transmission Provider.

7.2 Interest on Unpaid Balances

Interest on any unpaid amounts

(including amounts placed in escrow)

shall be calculated in accordance with

the methodology specified for interest

on refunds in the Commission’s

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

Interest on delinquent amounts shall be

calculated from the due date of the bill

to the date of payment. When payments

are made by mail, bills shall be

considered as having been paid on the

date of receipt by the Transmission

Provider.

7.3 Customer Default

In the event the Transmission

Customer fails, for any reason other than

a billing dispute as described below, to

make payment to the Transmission

Provider on or before the due date as

described above, and such failure of

payment is not corrected within thirty
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(30) calendar days after the

Transmission Provider notifies the

Transmission Customer to cure such

failure, a default by the Transmission

Customer shall be deemed to exist.

Within the same 30 calendar days after

notice of failure to make payment, the

Transmission Customer shall have the

right of appeal to the Administrator,

Southwestern Power Administration.

The Transmission Provider shall

continue service until the Administrator

makes a determination on the

Transmission Customer’s appeal. In the

event of a billing dispute between the

Transmission Provider and the

Transmission Customer, the

Transmission Provider will continue to

provide service under the Service

Agreement as long as the Transmission

Customer: (i) Continues to make all

payments not in dispute, and (ii) pays

into an independent escrow account the

portion of the invoice in dispute,

pending resolution of such dispute. If

the Transmission Customer fails to meet

these two requirements for continuation

of service, then the Transmission

Provider may provide notice to the

Transmission Customer of its intention

to suspend service in sixty (60) days, in

accordance with Commission policy.

8 Accounting for the Transmission

Provider’s Use of the Tariff

The Transmission Provider shall

record the following amounts, as

outlined below.

8.1 Transmission Revenues

Include in a separate operating

revenue account or subaccount the

revenues it receives from Transmission

Service when making Third-Party Sales

under Part II of the Tariff.

8.2 Study Costs and Revenues

Include in a separate transmission

operating expense account or

subaccount, costs properly chargeable to

expense that are incurred to perform

any System Impact Studies or Facilities

Studies which the Transmission

Provider conducts to determine if it

must construct new transmission

facilities or upgrades necessary for its

own uses, including making Third-Party

Sales under the Tariff; and include in a

separate operating revenue account or

subaccount the revenues received for

System Impact Studies or Facilities

Studies performed when such amounts

are separately stated and identified in

the Transmission Customer’s billing

under the Tariff.

9 Regulatory Filings

Nothing contained in the Tariff or any

Service Agreement shall be construed as

affecting in any way the ability of any

Party receiving service under the Tariff

to exercise its rights under the Federal

Power Act and pursuant to the

Commission’s rules and regulations

promulgated thereunder.

10 Force Majeure and Indemnification

10.1 Force Majeure

An event of Force Majeure means any

act of God, labor disturbance, act of the

public enemy, war, insurrection, riot,

fire, storm or flood, explosion, breakage

or accident to machinery or equipment,

any Curtailment, order, regulation or

restriction imposed by governmental

military or lawfully established civilian

authorities, or any other cause beyond a

Party’s control. A Force Majeure event

does not include an act of negligence or

intentional wrongdoing. Neither the

Transmission Provider nor the

Transmission Customer will be

considered in default as to any

obligation under this Tariff if prevented

from fulfilling the obligation due to an

event of Force Majeure. However, a

Party whose performance under this

Tariff is hindered by an event of Force

Majeure shall make all reasonable

efforts to perform its obligations under

this Tariff. Either Party rendered unable

to fulfill any of its obligations under the

Service Agreement by reason of an

uncontrollable force shall give prompt

written notice of such fact to the other

Party and shall exercise due diligence to

remove such inability with all

reasonable dispatch.

10.2 Indemnification

The Transmission Customer shall at

all times indemnify, defend, and save

the Transmission Provider harmless

from, any and all damages, losses,

claims, including claims and actions

relating to injury to or death of any

person or damage to property, demands,

suits, recoveries, costs and expenses,

court costs, attorney fees, and all other

obligations by or to third parties, arising

out of or resulting from the

Transmission Provider’s performance of

its obligations under this Tariff on

behalf of the Transmission Customer,

except in cases of negligence or

intentional wrongdoing by the

Transmission Provider. The liability of

the Transmission Provider shall be

determined in accordance with the

provisions of the Federal Tort Claims

Act, as amended.

11 Creditworthiness

For the purpose of determining the

ability of the Transmission Customer to

meet its obligations related to service

hereunder, the Transmission Provider

may require reasonable credit review

procedures. This review shall be made

in accordance with standard

commercial practices. In addition, the

Transmission Provider may require the

Transmission Customer to provide and

maintain in effect during the term of the

Service Agreement, an unconditional

and irrevocable letter of credit as

security to meet its responsibilities and

obligations under the Tariff, or an

alternative form of security proposed by

the Transmission Customer and

acceptable to the Transmission Provider

and consistent with commercial

practices established by the Uniform

Commercial Code that protects the

Transmission Provider against the risk

of non-payment.

12 Dispute Resolution Procedures

12.1 Internal Dispute Resolution

Procedures

Any dispute between a Transmission

Customer and the Transmission

Provider involving transmission service

under the Tariff shall be referred to a

designated senior representative of the

Transmission Provider and a senior

representative of the Transmission

Customer for resolution on an informal

basis as promptly as practicable.

12.2 Disputes

Any dispute regarding service

provided under the Service Agreement

will be resolved in a manner consistent

with the Administrative Disputes

Resolution Act, as amended, subject to

statutory and regulatory limits on the

Transmission Provider’s authority to

submit disputes to arbitration.

12.3 Rights Under The Federal Power

Act

Nothing in this section shall restrict

the rights of any party to file a

Complaint with the Commission under

relevant provisions of the Federal Power

Act.

Part II. Point-to-Point Transmission

Service

Preamble

The Transmission Provider will

provide Firm and Non-Firm Point-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.
50316 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

13 Nature of Firm Point-To-Point

Transmission Service

13.1 Term

The minimum term of Firm Point-ToPoint Transmission Service shall be one

day and the maximum term shall be

specified in the Service Agreement.

13.2 Reservation Priority

Long-Term Firm Point-To-Point

Transmission Service shall be available

on a first-come, first-served basis i.e., in

the chronological sequence in which

each Transmission Customer reserved

service. Reservations for Short-Term

Firm Point-To-Point Transmission

Service will be conditional based upon

the length of the requested transaction.

If the Transmission System becomes

oversubscribed, requests for longer term

service may preempt requests for shorter

term service up to the following

deadlines; one day before the

commencement of daily service, one

week before the commencement of

weekly service, and one month before

the commencement of monthly service.

Before the conditional reservation

deadline, if available transmission

capability is insufficient to satisfy all

Applications, an Eligible Customer with

a reservation for shorter term service has

the right of first refusal to match any

longer term reservation before losing its

reservation priority. A longer term

competing request for Short-Term Firm

Point-To-Point Transmission Service

will be granted if the Eligible Customer

with the right of first refusal does not

agree to match the competing request

within 24 hours (or earlier if necessary

to comply with the scheduling

deadlines provided in § 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 PointTo-Point Transmission Service will

always have a reservation priority over

Non-Firm Point-To-Point Transmission

Service under the Tariff. All Long-Term

Firm Point-To-Point Transmission

Service will have equal reservation

priority with Native Load Customers

and Network Customers. Reservation

priorities for existing firm service

customers are provided in § 2.2.

13.3 Use of Firm Transmission Service

by the Transmission Provider

The Transmission Provider will be

subject to the rates, terms and

conditions of Part II of the Tariff when

making Third-Party Sales under

agreements executed on or after

November 24, 1997. The Transmission

Provider will maintain separate

accounting, pursuant to Section 8, for

any use of the Point-To-Point

Transmission Service to make ThirdParty 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 PointTo-Point Transmission Service. The

Transmission Provider shall offer a

standard form Firm Point-to-Point

Transmission Service Agreement

(Attachment A) to an Eligible Customer

when it first submits a Completed

Application for Short-Term Firm Pointto-Point Transmission Service pursuant

to the Tariff.

13.5 Transmission Customer

Obligations for Facility Additions or

Redispatch Costs

In cases where the Transmission

Provider determines that the

Transmission System is not capable of

providing Firm Point-To-Point

Transmission Service without: (1)

Degrading or impairing the reliability of

service to Native Load Customers,

Network Customers, and other

Transmission Customers taking Firm

Point-To-Point Transmission Service, or

(2) interfering with the Transmission

Provider’s ability to meet prior firm

contractual commitments to others, the

Transmission Provider will be obligated

to expand or upgrade its Transmission

System pursuant to the terms of § 15.4.

The Transmission Customer must agree

to compensate the Transmission

Provider in advance for any necessary

transmission facility additions pursuant

to the terms of Section 27. To the extent

the Transmission Provider can relieve

any system constraint more

economically by redispatching the

Transmission Provider’s resources than

through constructing Network

Upgrades, it shall do so, provided that

the Eligible Customer agrees to

compensate the Transmission Provider

pursuant to the terms of Section 27. Any

redispatch, Network Upgrade or Direct

Assignment Facilities costs to be

charged to the Transmission Customer

on an incremental basis under the Tariff

will be specified in the Service

Agreement or a separate agreement, as

appropriate, prior to initiating service.

13.6 Curtailment of Firm Transmission

Service

In the event that a Curtailment on the

Transmission Provider’s Transmission

System, or a portion thereof, is required

to maintain reliable operation of such

system, Curtailments will be made on a

non-discriminatory basis to the

transaction(s) that effectively relieve the

constraint. If multiple transactions

require Curtailment, to the extent

practicable and consistent with Good

Utility Practice, the Transmission

Provider will curtail service to Network

Customers and Transmission Customers

taking Firm Point-To-Point

Transmission Service on a basis

comparable to the curtailment of service

to the Transmission Provider’s Native

Load Customers. All Curtailments will

be made on a non-discriminatory basis;

however, Non-Firm Point-To-Point

Transmission Service shall be

subordinate to Firm Transmission

Service. When the Transmission

Provider determines that an electrical

emergency exists on its Transmission

System and implements emergency

procedures to Curtail Firm

Transmission Service, the Transmission

Customer shall make the required

reductions upon request of the

Transmission Provider. However, the

Transmission Provider reserves the right

to Curtail, in whole or in part, any Firm

Transmission Service provided under

the Tariff when, in the Transmission

Provider’s sole discretion, an emergency

or other unforeseen condition impairs or

degrades the reliability of its

Transmission System. The Transmission

Provider will notify all affected

Transmission Customers in a timely

manner of any scheduled Curtailments.

13.7 Classification of Firm

Transmission Service

(a) The Transmission Customer taking

Firm Point-To-Point Transmission

Service may: (1) Change its Receipt and

Delivery Points to obtain service on a

non-firm basis consistent with the terms

of Section 22.1, or (2) request a

modification of the Points of Receipt or

Delivery on a firm basis pursuant to the

terms of Section 22.2.

(b) The Transmission Customer may

purchase transmission service to make

sales of capacity and energy from

multiple generating units that are on the

Transmission Provider’s Transmission

System. For such a purchase of

transmission service, the resources will

be designated as multiple Points of

Receipt, unless the multiple generating

units are at the same generating plant in

which case the units would be treated

as a single Point of Receipt.

(c) The Transmission Provider shall

provide firm deliveries of capacity and

energy from the Point(s) of Receipt to

the Point(s) of Delivery. Each Point of

Receipt at which firm transmission
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50317

capacity is reserved by the Transmission

Customer shall be set forth in the Firm

Point-To-Point Service Agreement for

Long-Term Firm Transmission Service

along with a corresponding capacity

reservation associated with each Point

of Receipt. Points of Receipt and

corresponding capacity reservations

shall be as mutually agreed upon by the

Parties for Short-Term Firm

Transmission. Each Point of Delivery at

which firm transmission capacity is

reserved by the Transmission Customer

shall be set forth in the Firm Point-ToPoint 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. of the day prior to

commencement of such service.

Schedules submitted after 10:00 a.m.

will be accommodated, if practicable.

Hour-to-hour schedules of any capacity

and energy that is to be delivered must

be stated in increments of 1,000 kW per

hour. Transmission Customers within

the Transmission Provider’s service area

with multiple requests for Transmission

Service at a Point of Receipt, each of

which is under 1,000 kW per hour, may

consolidate their service requests at a

common point of receipt into units of

1,000 kW per hour for scheduling and

billing purposes. Scheduling changes

will be permitted up to twenty (20)

minutes before the start of the next clock

hour provided that the Delivering Party

and Receiving Party also agree to the

schedule modification. The

Transmission Provider will furnish to

the Delivering Party’s system operator,

hour-to-hour schedules equal to those

furnished by the Receiving Party (unless

reduced for losses) and shall deliver the

capacity and energy provided by such

schedules. Should the Transmission

Customer, Delivering Party or Receiving

Party revise or terminate any schedule,

such party shall immediately notify the

Transmission Provider, and the

Transmission Provider shall have the

right to adjust accordingly the schedule

for capacity and energy to be received

and to be delivered.

14 Nature of Non-Firm Point-To-Point

Transmission Service

14.1 Term

Non-Firm Point-To-Point

Transmission Service will be available

for periods ranging from one (1) hour to

one (1) month. However, a Purchaser of

Non-Firm Point-To-Point Transmission

Service will be entitled to reserve a

sequential term of service (such as a

sequential monthly term without having

to wait for the initial term to expire

before requesting another monthly term)

so that the total time period for which

the reservation applies is greater than

one month, subject to the requirements

of Section 18.3.

14.2 Reservation Priority

Non-Firm Point-To-Point

Transmission Service shall be available

from transmission capability in excess

of that needed for reliable service to

Native Load Customers, Network

Customers, and other Transmission

Customers taking Long-Term and ShortTerm 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 NonFirm 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 NonFirm Point-To-Point Transmission

Service after notification by the

Transmission Provider; and, (b) within

24 hours (or earlier if necessary to

comply with the scheduling deadlines

provided in Section 14.6) for Non-Firm

Point-To-Point Transmission Service

other than hourly transactions after

notification by the Transmission

Provider. Transmission service for

Network Customers from resources

other than designated Network

Resources will have a higher priority

than any Non-Firm Point-To-Point

Transmission Service. Non-Firm PointTo-Point Transmission Service over

secondary Point(s) of Receipt and

Point(s) of Delivery will have the lowest

reservation priority under the Tariff.

14.3 Use of Non-Firm Point-To-Point

Transmission Service by the

Transmission Provider

The Transmission Provider will be

subject to the rates, terms and

conditions of Part II of the Tariff when

making Third-Party Sales under

agreements executed on or after

November 24, 1997. The Transmission

Provider will maintain separate

accounting, pursuant to Section 8, for

any use of Non-Firm Point-To-Point

Transmission Service to make ThirdParty Sales.

14.4 Service Agreements

The Transmission Provider shall offer

a standard form Non-Firm Point-ToPoint Transmission Service Agreement

(Attachment B) to an Eligible Customer

when it first submits a Completed

Application for Non-Firm Point-ToPoint Transmission Service pursuant to

the Tariff.

14.5 Classification of Non-Firm PointTo-Point Transmission Service

Non-Firm Point-To-Point

Transmission Service shall be offered

under terms and conditions contained

in Part II of the Tariff. The Transmission

Provider undertakes no obligation under

the Tariff to plan its Transmission

System in order to have sufficient

capacity for Non-Firm Point-To-Point

Transmission Service. Parties requesting

Non-Firm Point-To-Point Transmission

Service for the transmission of firm

power do so with the full realization

that such service is subject to

availability and to Curtailment or

Interruption under the terms of the

Tariff. The Transmission Provider shall

specify the rate treatment and all related

terms and conditions applicable in the

event that a Transmission Customer

(including Third-Party Sales by the

Transmission Provider) exceeds its nonfirm capacity reservation. Non-Firm

Point-To-Point Transmission Service

shall include transmission of energy on

an hourly basis and transmission of

scheduled short-term capacity and

energy on a daily, weekly or monthly
50318 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

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. of the day prior

to commencement of such service.

Schedules submitted after 2:00 p.m. will

be accommodated, if practicable. Hourto-hour schedules of energy that are to

be delivered must be stated in

increments of 1,000 kW per hour.

Transmission Customers within the

Transmission Provider’s service area

with multiple requests for Transmission

Service at a Point of Receipt, each of

which is under 1,000 kW per hour, may

consolidate their schedules at a

common Point of Receipt into units of

1,000 kW per hour. Scheduling changes

will be permitted up to twenty (20)

minutes before the start of the next clock

hour provided that the Delivering Party

and Receiving Party also agree to the

schedule modification. The

Transmission Provider will furnish to

the Delivering Party’s system operator,

hour-to-hour schedules equal to those

furnished by the Receiving Party (unless

reduced for losses) and shall deliver the

capacity and energy provided by such

schedules. Should the Transmission

Customer, Delivering Party or Receiving

Party revise or terminate any schedule,

such party shall immediately notify the

Transmission Provider, and the

Transmission Provider shall have the

right to adjust accordingly the schedule

for capacity and energy to be received

and to be delivered.

14.7 Curtailment or Interruption of

Service

The Transmission Provider reserves

the right to Curtail, in whole or in part,

Non-Firm Point-To-Point Transmission

Service provided under the Tariff for

reliability reasons when, an emergency

or other unforeseen condition threatens

to impair or degrade the reliability of its

Transmission System. The Transmission

Provider reserves the right to Interrupt,

in whole or in part, Non-Firm Point-ToPoint Transmission Service provided

under the Tariff for economic reasons in

order to accommodate (1) A request for

Firm Transmission Service, (2) a request

for Non-Firm Point-To-Point

Transmission Service of greater

duration, (3) a request for Non-Firm

Point-To-Point Transmission Service of

equal duration with a higher price, or

(4) transmission service for Network

Customers from non-designated

resources. The Transmission Provider

also will discontinue or reduce service

to the Transmission Customer to the

extent that deliveries for transmission

are discontinued or reduced at the

Point(s) of Receipt. Where required,

Curtailments or Interruptions will be

made on a non-discriminatory basis to

the transaction(s) that effectively relieve

the constraint, however, Non-Firm

Point-To-Point Transmission Service

shall be subordinate to Firm

Transmission Service. If multiple

transactions require Curtailment or

Interruption, to the extent practicable

and consistent with Good Utility

Practice, Curtailments or Interruptions

will be made to transactions of the

shortest term (e.g., hourly non-firm

transactions will be Curtailed or

Interrupted before daily non-firm

transactions and daily non-firm

transactions will be Curtailed or

Interrupted before weekly non-firm

transactions). Transmission service for

Network Customers from resources

other than designated Network

Resources will have a higher priority

than any Non-Firm Point-To-Point

Transmission Service under the Tariff.

Non-Firm Point-To-Point Transmission

Service over secondary Point(s) of

Receipt and Point(s) of Delivery will

have a lower priority than any Non-Firm

Point-To-Point Transmission Service

under the Tariff. The Transmission

Provider will provide advance notice of

Curtailment or Interruption where such

notice can be provided consistent with

Good Utility Practice.

15 Service Availability

15.1 General Conditions

The Transmission Provider will

provide Firm and Non-Firm Point-ToPoint Transmission Service over, on or

across its Transmission System to any

Transmission Customer that has met the

requirements of Section 16.

15.2 Determination of Available

Transmission Capability

A description of the Transmission

Provider’s specific methodology for

assessing available transmission

capability posted on the Transmission

Provider’s OASIS (Section 4) is

contained in Attachment C of the Tariff.

In the event sufficient transmission

capability may not exist to

accommodate a service request, the

Transmission Provider will respond by

performing a System Impact Study.

15.3 Initiating Service in the Absence

of an Executed Service Agreement

If the Transmission Provider and the

Transmission Customer requesting Firm

or Non-Firm Point-To-Point

Transmission Service cannot agree on

all the terms and conditions of the

Point-To-Point Service Agreement, the

Transmission Provider shall commence

providing Transmission Service subject

to the Transmission Customer agreeing

to: (i) Compensate the Transmission

Provider at the existing rate placed in

effect pursuant to Federal law and

regulations, and (ii) comply with the

terms and conditions of the Tariff

including paying the appropriate

processing fees in accordance with the

terms of Section 17.3. If the

Transmission Customer cannot accept

all of the terms and conditions of the

offered Service Agreement, the

Transmission Customer may request

resolution of the unacceptable terms

and conditions under Section 12,

Dispute Resolution Procedures, of the

Tariff. Any changes resulting from the

dispute resolution procedures will be

effective upon the date of initial service.

15.4 Obligation to Provide

Transmission Service that Requires

Expansion or Modification of the

Transmission System

If the Transmission Provider

determines that it cannot accommodate

a Completed Application for Firm PointTo-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
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50319

may continue to receive transmission

service under those agreements until

such time as those agreements may be

modified by the Commission.

15.7 Real Power Losses

Real Power Losses are associated with

all transmission service. The

Transmission Provider is not obligated

to provide Real Power Losses. The

Transmission Customer is responsible

for replacing losses associated with all

transmission service as calculated by

the Transmission Provider. The

applicable Real Power Loss factors are

specified in the Service Agreements.

16 Transmission Customer

Responsibilities

16.1 Conditions Required of

Transmission Customers

Point-To-Point Transmission Service

shall be provided by the Transmission

Provider only if the following

conditions are satisfied by the

Transmission Customer:

a. The Transmission Customer has

pending a Completed Application for

service;

b. The Transmission Customer meets

the creditworthiness criteria set forth in

Section 11;

c. The Transmission Customer will

have arrangements in place for any

other transmission service necessary to

effect the delivery from the generating

source to the Transmission Provider

prior to the time service under Part II of

the Tariff commences;

d. The Transmission Customer agrees

to pay for any facilities constructed and

chargeable to such Transmission

Customer under Part II of the Tariff,

whether or not the Transmission

Customer takes service for the full term

of its reservation; and

e. The Transmission Customer has

executed a Point-To-Point Service

Agreement or has agreed to receive

service pursuant to Section 15.3.

16.2 Transmission Customer

Responsibility for Third-Party

Arrangements

Any scheduling arrangements that

may be required by other electric

systems shall be the responsibility of the

Transmission Customer requesting

service. The Transmission Customer

shall provide, unless waived by the

Transmission Provider, notification to

the Transmission Provider identifying

such systems and authorizing them to

schedule the capacity and energy to be

transmitted by the Transmission

Provider pursuant to Part II of the Tariff

on behalf of the Receiving Party at the

Point of Delivery or the Delivering Party

at the Point of Receipt. However, the

Transmission Provider will undertake

reasonable efforts to assist the

Transmission Customer in making such

arrangements, including, without

limitation, providing any information or

data required by such other electric

system pursuant to Good Utility

Practice.

17 Procedures for Arranging Firm

Point-To-Point Transmission Service

17.1 Application

A request for Firm Point-To-Point

Transmission Service for periods of one

year or longer must contain a written

Application to Administrator,

Southwestern Power Administration,

P.O. Box 1619, Tulsa, Oklahoma 74101–

1619, at least sixty (60) days in advance

of the calendar month in which service

is to commence. The Transmission

Provider will consider requests for such

firm service on shorter notice when

feasible. Requests for firm service for

periods of less than one year shall be

subject to expedited procedures that

shall be negotiated between the Parties

within the time constraints provided in

Section 17.5. All Firm Point-To-Point

Transmission Service requests should

be submitted by entering the

information listed below on the

Transmission Provider’s OASIS. Prior to

implementation of the Transmission

Provider’s OASIS, a Completed

Application may be submitted by (i)

transmitting the required information to

the Transmission Provider by telefax, or

(ii) providing the information by

telephone over the Transmission

Provider’s time-recorded telephone line.

Each of these methods will provide a

time-stamped record for establishing the

priority of the Application.

17.2 Completed Application

A Completed Application shall

provide all of the information included

in 18 CFR § 2.20 including but not

limited to the following:

(i) The identity, address, telephone

number and facsimile number of the

entity requesting service

(ii) A statement that the entity

requesting service is, or will be upon

commencement of service, an Eligible

Customer under the Tariff

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

Receipt and Point(s) of Delivery and the

identities of the Delivering Parties and

the Receiving Parties

(iv) The location of the generating

facility(ies) supplying the capacity and

energy and the location of the load

ultimately served by the capacity and

energy transmitted. The Transmission

Provider will treat this information as

confidential except to the extent that

disclosure of this information is

required by the Tariff, by regulatory or

judicial order, for reliability purposes

pursuant to Good Utility Practice or

pursuant to RTG transmission

information sharing agreements. The

Transmission Provider shall treat this

information consistent with the

standards of conduct contained in Part

37 of the Commission’s regulations

(v) A description of the supply

characteristics of the capacity and

energy to be delivered

(vi) An estimate of the capacity and

energy expected to be delivered to the

Receiving Party

(vii) The Service Commencement Date

and the term of the requested

Transmission Service

(viii) The transmission capacity

requested for each Point of Receipt and

each Point of Delivery on the

Transmission Provider’s Transmission

System; customers may combine their

requests for service in order to satisfy

the minimum transmission capacity

requirement

The Transmission Provider shall treat

this information consistent with the

standards of conduct contained in part

37 of the Commission’s regulations.

17.3 Processing Fee

A Completed Application for Firm

Point-To-Point Transmission Service

also shall include a processing fee for all

requests for Firm Transmission Service

of one year or longer. The processing fee

shall be calculated using the estimated

average number of hours required to

process an application. The fee will be

posted on the Transmission Provider’s

OASIS and may change as average

costs/per/hour for the Transmission

Provider change. This fee does not

apply to costs to complete System

Impact Studies or Facility Studies or to

add new facilities.

17.4 Notice of Deficient Application

If an Application fails to meet the

requirements of the Tariff, the

Transmission Provider shall notify the

entity requesting service within fifteen

(15) days of receipt of the reasons for

such failure. The Transmission Provider

will attempt to remedy minor

deficiencies in the Application through

informal communications with the

Eligible Customer. If such efforts are

unsuccessful, the Transmission Provider

shall return the Application. Upon

receipt of a new or revised Application

that fully complies with the

requirements of Part II of the Tariff, the

Eligible Customer shall be assigned a

new priority consistent with the date of

the new or revised Application.
50320 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

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 onemonth’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 PointTo-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 timerecorded telephone line. Each of these

methods will provide a time-stamped

record for establishing the service

priority of the Application.

18.2 Completed Application

A Completed Application shall

provide all of the information included

in 18 CFR § 2.20 including but not

limited to the following:

(i) The identity, address, telephone

number and facsimile number of the

entity requesting service.

(ii) A statement that the entity

requesting service is, or will be upon

commencement of service, an Eligible

Customer under the Tariff.

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

Point(s) of Delivery.

(iv) The maximum amount of capacity

requested at each Point of Receipt and

Point of Delivery; and

(v) The proposed dates and hours for

initiating and terminating transmission

service hereunder.

In addition to the information

specified above, when required to

properly evaluate system conditions, the

Transmission Provider also may ask the

Transmission Customer to provide the

following:

(vi) The electrical location of the

initial source of the power to be

transmitted pursuant to the

Transmission Customer’s request for

service.

(vii) The electrical location of the

ultimate load.

The Transmission Provider will treat

this information in (vi) and (vii) as

confidential at the request of the

Transmission Customer except to the

extent that disclosure of this

information is required by this Tariff, by

Federal law 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.

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.

19 Additional Study Procedures For

Firm Point-To-Point Transmission

Service Requests

19.1 Notice of Need for System Impact

Study

After receiving a request for service,

the Transmission Provider shall

determine on a non-discriminatory basis

whether a System Impact Study is

needed. A description of the

Transmission Provider’s methodology

for completing a System Impact Study is

provided in Attachment D. If the

Transmission Provider determines that a

System Impact Study is necessary to

accommodate the requested service, it

shall so inform the Eligible Customer, as

soon as practicable. In such cases, the

Transmission Provider shall within
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50321

thirty (30) days of receipt of a

Completed Application, tender a System

Impact Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

System Impact Study. For a service

request to remain a Completed

Application, the Eligible Customer shall

execute the System Impact Study

Agreement and return it to the

Transmission Provider within fifteen

(15) days. If the Eligible Customer elects

not to execute the System Impact Study

Agreement, its application shall be

deemed withdrawn.

19.2 System Impact Study Agreement

and Compensation

(i) The System Impact Study

Agreement will clearly specify the

Transmission Provider’s estimate of the

actual cost, and time for completion of

the System Impact Study. The charge

will not exceed the actual cost of the

study. In performing the System Impact

Study, the Transmission Provider shall

rely, to the extent reasonably

practicable, on existing transmission

planning studies. The Eligible Customer

will not be assessed a charge for such

existing studies; however, the Eligible

Customer will be responsible for charges

associated with any modifications to

existing planning studies that are

reasonably necessary to evaluate the

impact of the Eligible Customer’s

request for service on the Transmission

System.

(ii) If, in response to multiple Eligible

Customers requesting service in relation

to the same competitive solicitation, a

single System Impact Study is sufficient

for the Transmission Provider to

accommodate the requests for service,

the costs of that study shall be pro-rated

among the Eligible Customers.

(iii) For System Impact Studies that

the Transmission Provider conducts on

its own behalf, the Transmission

Provider shall record the cost of the

System Impact Studies pursuant to

Section 8.

19.3 System Impact Study Procedures

Upon receipt of an executed System

Impact Study Agreement, the

Transmission Provider will use due

diligence to complete the required

System Impact Study within a sixty (60)

day period. The System Impact Study

shall identify any system constraints

and redispatch options, additional

Direct Assignment Facilities or Network

Upgrades required to provide the

requested service. In the event that the

Transmission Provider is unable to

complete the required System Impact

Study within such time period, it shall

so notify the Eligible Customer and

provide an estimated completion date

along with an explanation of the reasons

why additional time is required to

complete the required studies. A copy of

the completed System Impact Study and

related work papers shall be made

available to the Eligible Customer. The

Transmission Provider will use the

same due diligence in completing the

System Impact Study for an Eligible

Customer as it uses when completing

studies for itself. The Transmission

Provider shall notify the Eligible

Customer immediately upon completion

of the System Impact Study if the

Transmission System will be adequate

to accommodate all or part of a request

for service or that no costs are likely to

be incurred for new transmission

facilities or upgrades. In order for a

request to remain a Completed

Application, within fifteen (15) days of

completion of the System Impact Study

the Eligible Customer must execute a

Service Agreement or request service

without an executed Service Agreement

pursuant to Section 15.3, or the

Application shall be deemed terminated

and withdrawn.

19.4 Facilities Study Procedures

If a System Impact Study indicates

that additions or upgrades to the

Transmission System are needed to

supply the Eligible Customer’s service

request, the Transmission Provider,

within thirty (30) days of the

completion of the System Impact Study,

shall tender to the Eligible Customer a

Facilities Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

Facilities Study. For a service request to

remain a Completed Application, the

Eligible Customer shall execute the

Facilities Study Agreement and return it

to the Transmission Provider within

fifteen (15) days. If the Eligible

Customer elects not to execute the

Facilities Study Agreement, its

application shall be deemed withdrawn.

Upon receipt of an executed Facilities

Study Agreement, the Transmission

Provider will use due diligence to

complete the required Facilities Study

within a sixty (60) day period. If the

Transmission Provider is unable to

complete the Facilities Study in the

allotted time period, the Transmission

Provider shall notify the Transmission

Customer and provide an estimate of the

time needed to reach a final

determination along with an

explanation of the reasons that

additional time is required to complete

the study. When completed, the

Facilities Study will include a good

faith estimate of: (i) The cost of Direct

Assignment Facilities to be charged to

the Transmission Customer, (ii) the

Transmission Customer’s appropriate

share of the cost of any required

Network Upgrades as determined

pursuant to the provisions of Part II of

the Tariff, and (iii) the time required to

complete such construction and initiate

the requested service. The Transmission

Customer shall pay the Transmission

Provider, in advance, the Transmission

Customer’s share of the costs of new

facilities or upgrades. The Transmission

Customer shall have thirty (30) days to

execute a construction agreement and a

Service Agreement and to provide the

advance payment or request service

without an executed Service Agreement

pursuant to Section 15.3, and provide

the required letter of credit or other

form of security, or the request will no

longer be a Completed Application and

shall be deemed terminated and

withdrawn.

19.5 Facilities Study Modifications

Any change in design arising from

inability to site or construct facilities as

proposed will require development of a

revised good faith estimate. New good

faith estimates also will be required in

the event of new statutory or regulatory

requirements that are effective before

the completion of construction or other

circumstances beyond the control of the

Transmission Provider that significantly

affect the final cost of new facilities or

upgrades to be charged to the

Transmission Customer pursuant to the

provisions of Part II of the Tariff.

19.6 Due Diligence in Completing New

Facilities

The Transmission Provider shall use

due diligence to add necessary facilities

or upgrade its Transmission System

within a reasonable time. The

Transmission Provider will not upgrade

its existing or planned Transmission

System in order to provide the

requested Firm Point-To-Point

Transmission Service if doing so would

impair system reliability or otherwise

impair or degrade existing firm service.

19.7 Partial Interim Service

If the Transmission Provider

determines that it will not have

adequate transmission capability to

satisfy the full amount of a Completed

Application for Firm Point-To-Point

Transmission Service, the Transmission

Provider nonetheless shall be obligated

to offer and provide the portion of the

requested Firm Point-To-Point

Transmission Service that can be

accommodated without addition of any

facilities and through redispatch.
50322 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

However, the Transmission Provider

shall not be obligated to provide the

incremental amount of requested Firm

Point-To-Point Transmission Service

that requires the addition of facilities or

upgrades to the Transmission System

until such facilities or upgrades have

been placed in service.

19.8 Expedited Procedures for New

Facilities

In lieu of the procedures set forth

above, the Eligible Customer shall have

the option to expedite the process by

requesting the Transmission Provider to

tender at one time, together with the

results of required studies, an

‘‘Expedited Service Agreement’’

pursuant to which the Eligible Customer

would agree to compensate the

Transmission Provider in advance for

all costs incurred pursuant to the terms

of the Tariff. In order to exercise this

option, the Eligible Customer shall

request in writing an expedited Service

Agreement covering all of the 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 Transmission Provider shall

promptly tender a Service Agreement

for Non-Firm Point-To-Point

Transmission Service providing for the

service. In the event the Transmission

Provider concludes that no reasonable

alternative exists and the Transmission

Customer disagrees, the Transmission

Customer may seek relief under the

dispute resolution procedures pursuant

to Section 12 or it may refer the dispute

to the Commission for resolution.

20.3 Refund Obligation for Unfinished

Facility Additions

If the Transmission Provider and the

Transmission Customer mutually agree

that no other reasonable alternatives

exist and the requested service cannot

be provided out of existing capability

under the conditions of Part II of the

Tariff, the obligation to provide the

requested Firm Point-To-Point

Transmission Service shall terminate

and any advance payment made by the

Transmission Customer that is in excess

of the costs incurred by the

Transmission Provider through the time

construction was suspended shall be

returned. However, the Transmission

Customer shall be responsible for all

prudently incurred costs by the

Transmission Provider through the time

construction was suspended.

21 Provisions Relating to Transmission

Construction and Services on the

Systems of Other Utilities

21.1 Responsibility for Third-Party

System Additions

The Transmission Provider shall not

be responsible for making arrangements

for any necessary engineering,

permitting, and construction of

transmission or distribution facilities on

the system(s) of any other entity or for

obtaining any regulatory approval for

such facilities. The Transmission

Provider will undertake reasonable

efforts to assist the Transmission

Customer in obtaining such

arrangements, including, without

limitation, providing any information or

data required by such other electric

system pursuant to Good Utility

Practice.

21.2 Coordination of Third-Party

System Additions

In circumstances where the need for

transmission facilities or upgrades is

identified pursuant to the provisions of

Part II of the Tariff, and if such upgrades

further require the addition of

transmission facilities on other systems,

the Transmission Provider shall have

the right to coordinate construction on

its own system with the construction

required by others. The Transmission

Provider, after consultation with the

Transmission Customer and

representatives of such other systems,

may defer construction of its new

transmission facilities if the new

transmission facilities on another

system cannot be completed in a timely

manner. The Transmission Provider

shall notify the Transmission Customer

in writing of the basis for any decision

to defer construction and the specific

problems which must be resolved before

it will initiate or resume construction of

new facilities. Within sixty (60) days of

receiving written notification by the

Transmission Provider of its intent to

defer construction pursuant to this

section, the Transmission Customer may

challenge the decision in accordance

with the dispute resolution procedures

pursuant to Section or it may refer the

dispute to the Commission for

resolution.

22 Changes in Service Specifications

22.1 Modifications on a Non-Firm

Basis

The Transmission Customer taking

Firm Point-To-Point Transmission

Service may request the Transmission

Provider to provide transmission service

on a non-firm basis over Receipt and

Delivery Points other than those
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50323

specified in the Service Agreement

(‘‘Secondary Receipt and Delivery

Points’’), in amounts not to exceed its

firm capacity reservation, without

incurring an additional Non-Firm PointTo-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 nonfirm only, on an as-available basis, and

will not displace any firm or non-firm

service reserved or scheduled by thirdparties 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 PointTo-Point Transmission Service at the

Receipt and Delivery Points specified in

the relevant Service Agreement in the

amount of its original capacity

reservation.

(d) Service over Secondary Receipt

and Delivery Points on a non-firm basis

shall not require the filing of an

Application for Non-Firm Point-ToPoint Transmission Service under the

Tariff. However, all other requirements

of Part II of the Tariff (except as to

transmission rates) shall apply to

transmission service on a non-firm basis

over Secondary Receipt and Delivery

Points.

22.2 Modifications on a Firm Basis

Any request by a Transmission

Customer to modify Receipt and

Delivery Points on a firm basis shall be

treated as a new request for service in

accordance with Section 17 hereof

except that such Transmission Customer

shall not be obligated to pay any

additional application processing fee if

the capacity reservation does not exceed

the amount reserved in the existing

Service Agreement. While such new

request is pending, the Transmission

Customer shall retain its priority for

service at the existing firm Receipt and

Delivery Points specified in its Service

Agreement.

23 Sale or Assignment of Transmission

Service

23.1 Procedures for Assignment or

Transfer of Service

Subject to Commission approval of

any necessary filings, a Transmission

Customer may sell, assign, or transfer all

or a portion of its rights under its

Service Agreement, but only to another

Eligible Customer (the Assignee). The

Transmission Customer that sells,

assigns or transfers its rights under its

Service Agreement is hereafter referred

to as the Reseller. Compensation to the

Reseller shall not exceed the higher of

(i) the original rate paid by the Reseller,

(ii) the Transmission Provider’s

maximum rate on file at the time of the

assignment, or (iii) the Reseller’s

opportunity cost capped at the

Transmission Provider’s cost of

expansion. If the Assignee does not

request any change in the Point(s) of

Receipt or the Point(s) of Delivery, or a

change in any other term or condition

set forth in the original Service

Agreement, the Assignee will receive

the same services as did the Reseller

and the priority of service for the

Assignee will be the same as that of the

Reseller. A Reseller should notify the

Transmission Provider as soon as

possible after any assignment or transfer

of service occurs but in any event,

notification must be provided prior to

any provision of service to the Assignee.

The Assignee will be subject to all terms

and conditions of the Tariff. If the

Assignee requests a change in service,

the reservation priority of service will

be determined by the Transmission

Provider pursuant to Section 13.2.

23.2 Limitations on Assignment or

Transfer of Service

If the Assignee requests a change in

the Point(s) of Receipt or Point(s) of

Delivery, or a change in any other

specifications set forth in the original

Service Agreement, the Transmission

Provider will consent to such change

subject to the provisions of the Tariff,

provided that the change will not impair

the operation and reliability of the

Transmission Provider’s generation,

transmission, or distribution systems.

The Assignee shall compensate the

Transmission Provider in advance for

performing any System Impact Study

needed to evaluate the capability of the

Transmission System to accommodate

the proposed change and any additional

costs resulting from such change. The

Reseller shall remain liable for the

performance of all obligations under the

Service Agreement, except as

specifically agreed to by the Parties

through an amendment to the Service

Agreement.

23.3 Information on Assignment or

Transfer of Service

In accordance with Section 4,

Resellers may use the Transmission

Provider’s OASIS to post transmission

capacity available for resale.

24 Metering and Power Factor

Correction at Receipt and Delivery

Point(s)

24.1 Transmission Customer

Obligations

Unless otherwise agreed, the

Transmission Customer shall be

responsible for installing and

maintaining compatible metering and

communications equipment to

accurately account for the capacity and

energy being transmitted under Part II of

the Tariff and to communicate the

information to the Transmission

Provider. Such equipment shall remain

the property of the Transmission

Customer.

24.2 Transmission Provider Access to

Metering Data

The Transmission Provider shall have

access to metering data, which may

reasonably be required to facilitate

measurements and billing under the

Service Agreement.

24.3 Power Factor

Unless otherwise agreed, the

Transmission Customer is required to

maintain a power factor within the same

range as the Transmission Provider

pursuant to Good Utility Practices. The

power factor requirements are specified

in the Service Agreement where

applicable.

25 Compensation for Transmission

Service

Rates for Firm and Non-Firm 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
50324 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

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 the

Transmission Provider of sufficient

appropriations, when needed, and the

Transmission Customer’s advanced

funds.

28.3 Network Integration Transmission

Service

The Transmission Provider will

provide firm transmission service over

its Transmission System to the Network

Customer for the delivery of capacity

and energy from its designated Network

Resources to service its Network Loads

on a basis that is comparable to the

Transmission Provider’s use of the

Transmission System to reliably serve

its Native Load Customers.

28.4 Secondary Service

The Network Customer may use the

Transmission Provider’s Transmission

System to deliver energy to its Network

Loads from resources that have not been

designated as Network Resources. Such

energy shall be transmitted, on an asavailable basis, at no additional charge.

Deliveries from resources other than

Network Resources will have a higher

priority than any Non-Firm Point-ToPoint 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 PointTo-Point Transmission Service under

Part II of the Tariff for any Third-Party

Sale which requires use of the

Transmission Provider’s Transmission

System.

29 Initiating Service

29.1 Condition Precedent for

Receiving Service

Subject to the terms and conditions of

Part III of the Tariff, the Transmission

Provider will provide Network

Integration Transmission Service to any

Eligible Customer provided that: (i) The

Eligible Customer completes an

Application for service as provided

under Part III of the Tariff, (ii) the

Eligible Customer and the Transmission

Provider complete the technical

arrangements set forth in Sections 29.3

and 29.4, (iii) the Eligible Customer

executes a Service Agreement pursuant

to Attachment F for service under Part

III of the Tariff or requests in writing

that the Transmission Provider provide

service without an executed Service

Agreement, and (iv) the Eligible

Customer executes a Network Operating

Agreement with the Transmission

Provider pursuant to Attachment G. If

the Transmission Provider and the

Network Customer cannot agree on all

the terms and conditions of the Network

Service Agreement, the Transmission

Provider shall commence providing

Network Integration Transmission

Service subject to the Network

Customer’s agreeing to: (i) Compensate

the Transmission Provider at the

existing rate placed in effect pursuant to

applicable Federal law and regulations,

and (ii) comply with the terms and

conditions of the Tariff, including

paying the appropriate processing fees

in accordance with the terms of Section

29.2. If the Network Customer cannot

accept all of the terms and conditions of

the offered Service Agreement, the

Network Customer may request

resolution of the unacceptable terms

and conditions under Section 12,

Dispute Resolution Procedures, of the

Tariff. Any changes resulting from the
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50325

dispute resolution procedures will be

effective upon the date of initial service.

29.2 Application Procedures

An Eligible Customer requesting

service under Part III of the Tariff must

submit an Application to the

Transmission Provider as far as possible

in advance of the month in which

service is to commence. Unless subject

to the procedures in Section 2,

Completed Applications for Network

Integration Transmission Service will be

assigned a priority according to the date

and time the Application is received,

with the earliest Application receiving

the highest priority. Applications

should be submitted by entering the

information listed below on the

Transmission Provider’s OASIS. Prior to

implementation of the Transmission

Provider’s OASIS, a Completed

Application may be submitted by: (i)

Transmitting the required information

to the Transmission Provider by telefax,

or (ii) providing the information by

telephone over the Transmission

Provider’s time-recorded telephone line.

Each of these methods will provide a

time-stamped record for establishing the

service priority of the Application. A

Completed Application for Network

Integration Transmission Service shall

include an application processing fee.

The processing fee shall be calculated

using the estimated average number of

hours required to process an

application. The fee will be posted on

the Transmission Provider’s OASIS and

may change as average costs/per/hour

for the Transmission Provider change.

This fee does not apply to costs to

complete System Impact Studies or

Facility Studies or to add new facilities.

A Completed Application shall provide

all of the information included in 18

CFR § 2.20 including but not limited to

the following:

(i) The identity, address, telephone

number and facsimile number of the

party requesting service;

(ii) A statement that the party

requesting service is, or will be upon

commencement of service, an Eligible

Customer under the Tariff;

(iii) A description of the Network

Load at each delivery point. This

description should separately identify

and provide the Eligible Customer’s best

estimate of the total loads to be served

at each transmission voltage level, and

the loads to be served from each

Transmission Provider substation at the

same transmission voltage level. The

description should include a ten (10)

year forecast of summer and winter load

and resource requirements beginning

with the first year after the service is

scheduled to commence;

(iv) The amount and location of any

interruptible loads included in the

Network Load. This shall include the

summer and winter capacity

requirements for each interruptible load

(had such load not been interruptible),

that portion of the load subject to

interruption, the conditions under

which an interruption can be

implemented and any limitations on the

amount and frequency of interruptions.

An Eligible Customer should identify

the amount of interruptible customer

load (if any), included in the 10 year

load forecast provided in response to

(iii) above;

(v) A description of Network

Resources (current and 10-year

projection), which shall include, for

each Network Resource:

—Unit size and amount of capacity from

that unit to be designated as Network

Resource

—VAR capability (both leading and

lagging), of all generators

—Operating restrictions

—Any periods of restricted operations

throughout the year

—Maintenance schedules

—Minimum loading level of unit

—Normal operating level of unit

—Any must-run unit designations

required for system reliability or

contract reasons

—Approximate variable generating cost

($/MWH) for redispatch computations

—Arrangements governing sale and

delivery of power to third parties from

generating facilities located in the

Transmission Provider Control Area,

where only a portion of unit output is

designated as a Network Resource

—Description of purchased power

designated as a Network Resource

including source of supply, Control

Area location, transmission

arrangements and delivery point(s) to

the Transmission Provider’s

Transmission System;

(vi) Description of Eligible Customer’s

transmission system:

—Load flow and stability data, such as

real and reactive parts of the load,

lines, transformers, reactive devices

and load type, including normal and

emergency ratings of all transmission

equipment in a load flow format

compatible with that used by the

Transmission Provider

—Operating restrictions needed for

reliability

—Operating guides employed by system

operators

—Contractual restrictions or committed

uses of the Eligible Customer’s

transmission system, other than the

Eligible Customer’s Network Loads

and Resources

—Location of Network Resources

described in subsection (v) above

—10 year projection of system

expansions or upgrades

—Transmission System maps that

include any proposed expansions or

upgrades

—Thermal ratings of Eligible Customer’s

Control Area ties with other Control

Areas;

(vii) Service Commencement Date and

the term of the requested Network

Integration Transmission Service. The

minimum term for Network Integration

Transmission Service is one year.

Unless the Parties agree to a different

time frame, the Transmission Provider

must acknowledge the request within

ten (10) days of receipt. The

acknowledgment must include a date by

which a response, including a Service

Agreement, will be sent to the Eligible

Customer. If an Application fails to meet

the requirements of this section, the

Transmission Provider shall notify the

Eligible Customer requesting service

within fifteen (15) days of receipt and

specify the reasons for such failure.

Wherever possible, the Transmission

Provider will attempt to remedy

deficiencies in the Application through

informal communications with the

Eligible Customer. If such efforts are

unsuccessful, the Transmission Provider

shall return the Application without

prejudice to the Eligible Customer filing

a new or revised Application that fully

complies with the requirements of this

section. The Eligible Customer will be

assigned a new priority consistent with

the date of the new or revised

Application. The Transmission Provider

shall treat this information consistent

with the standards of conduct contained

in Part 37 of the Commission’s

regulations.

29.3 Technical Arrangements to be

Completed Prior to Commencement of

Service

Network Integration Transmission

Service shall not commence until the

Transmission Provider and the Network

Customer or a third party, have

completed installation of all equipment

specified under the Network Operating

Agreement consistent with Good Utility

Practice and any additional

requirements reasonably and

consistently imposed to ensure the

reliable operation of the Transmission

System. The Transmission Provider

shall exercise reasonable efforts, in

coordination with the Network

Customer to complete such

arrangements as soon as practicable

taking into consideration the Service

Commencement Date.
50326 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

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 nondesignated third party load or otherwise

cannot be called upon to meet the

Network Customer’s Network Load on a

non-interruptible basis. Any owned or

purchased resources that were serving

the Network Customer’s loads under

firm agreements entered into on or

before the Service Commencement Date

shall initially be designated as Network

Resources until the Network Customer

terminates the designation of such

resources.

30.2 Designation of New Network

Resources

The Network Customer may designate

a new Network Resource by providing

the Transmission Provider with as much

advance notice as practicable. A

designation of a new Network Resource

must be made by a request for

modification of service pursuant to an

Application under Section 29.

30.3 Termination of Network

Resources

The Network Customer may terminate

the designation of all or part of a

generating resource as a Network

Resource at any time but should provide

notification to the Transmission

Provider as soon as reasonably

practicable.

30.4 Operation of Network Resources

The Network Customer shall not

operate its designated Network

Resources located in the Network

Customer’s or Transmission Provider’s

Control Area such that the output of

those facilities exceeds its designated

Network Load, plus non-firm sales

delivered pursuant to Part II of the

Tariff, plus losses. This limitation shall

not apply to changes in the operation of

a Transmission Customer’s Network

Resources at the request of the

Transmission Provider to respond to an

emergency or other unforeseen

condition which may impair or degrade

the reliability of the Transmission

System.

30.5 Network Customer Redispatch

Obligation

As a condition to receiving Network

Integration Transmission Service, the

Network Customer agrees to redispatch

its Network Resources as requested by

the Transmission Provider pursuant to

Section 33.2. To the extent practical, the

redispatch of resources pursuant to this

section shall be on a least cost, nondiscriminatory basis between all

Network Customers, and the

Transmission Provider.

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With the Transmission

Provider

The Network Customer shall be

responsible for any arrangements

necessary to deliver capacity and energy

from a Network Resource not physically

interconnected with the Transmission

Provider’s Transmission System. The

Transmission Provider will undertake

reasonable efforts to assist the Network

Customer in obtaining such

arrangements, including without

limitation, providing any information or

data required by such other entity

pursuant to Good Utility Practice.

30.7 Limitation on Designation of

Network Resources

The Network Customer must

demonstrate that it owns or has

committed to purchase generation

pursuant to an executed contract in

order to designate a generating resource

as a Network Resource. Alternatively,

the Network Customer may establish

that execution of a contract is

contingent upon the availability of

transmission service under Part III of the

Tariff.

30.8 Use of Interface Capacity by the

Network Customer

There is no limitation upon a Network

Customer’s use of the Transmission

Provider’s Transmission System at any

particular interface to integrate the

Network Customer’s Network Resources

(or substitute economy purchases) with

its Network Loads. However, a Network

Customer’s use of the Transmission

Provider’s total interface capacity with

other transmission systems may not

exceed the Network Customer’s Load.

30.9 Network Customer Owned

Transmission Facilities

The Network Customer that owns

existing transmission facilities that are

integrated with the Transmission

Provider’s Transmission System may be

eligible to receive consideration either

through a billing credit or some other

mechanism. In order to receive such

consideration the Network Customer

must demonstrate that its transmission

facilities are integrated into the plans or

operations of the Transmission Provider

to serve its power and transmission

customers. For facilities constructed by

the Network Customer subsequent to the

Service Commencement Date under Part

III of the Tariff, the Network Customer

shall receive credit where such facilities

are jointly planned and installed in

coordination with the Transmission

Provider. Calculation of the credit shall

be addressed in either the Network

Customer’s Service Agreement or any

other agreement between the Parties.

31 Designation of Network Load

31.1 Network Load

The Network Customer must

designate the individual Network Loads

on whose behalf the Transmission

Provider will provide Network

Integration Transmission Service. The

Network Loads shall be specified in the

Service Agreement.

31.2 New Network Loads Connected

With the Transmission Provider

The Network Customer shall provide

the Transmission Provider with as much

advance notice as reasonably practicable

of the designation of new Network Load

that will be added to its Transmission

System. A designation of new Network

Load must be made through a

modification of service pursuant to a

new Application. The Transmission

Provider will use due diligence to

install any transmission facilities

required to interconnect a new Network

Load designated by the Network

Customer. The costs of new facilities

required to interconnect a new Network

Load shall be determined in accordance

with the procedures provided in Section

32.4 and shall be charged to the

Network Customer in accordance with

Commission policies.

31.3 Network Load Not Physically

Interconnected With the Transmission

Provider

This section applies to both initial

designation pursuant to Section 31.1

and the subsequent addition of new

Network Load not physically
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50327

interconnected with the Transmission

Provider. To the extent that the Network

Customer desires to obtain transmission

service for a load outside the

Transmission Provider’s Transmission

System, the Network Customer shall

have the option of: (1) Electing to

include the entire load as Network Load

for all purposes under Part III of the

Tariff and designating Network

Resources in connection with such

additional Network Load, or (2)

excluding that entire load from its

Network Load and purchasing Point-ToPoint 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 nondiscriminatory manner. The

Transmission Provider will have no

obligation to refund any advance of

funds expended for purposes of

providing facilities for a Network

Customer. However, upon receipt of a

Network Customer’s written notice of

such a cancellation or delay, the

Transmission Provider will use the

same reasonable efforts to mitigate the

costs and charges owed to the

Transmission Provider as it would to

reduce its own costs and charges.

31.6 Annual Load and Resource

Information Updates

The Network Customer shall provide

the Transmission Provider with annual

updates of Network Load and Network

Resource forecasts consistent with those

included in its Application for Network

Integration Transmission Service under

Part III of the Tariff. The Network

Customer also shall provide the

Transmission Provider with timely

written notice of material changes in

any other information provided in its

Application relating to the Network

Customer’s Network Load, Network

Resources, its transmission system or

other aspects of its facilities or

operations affecting the Transmission

Provider’s ability to provide reliable

service.

32 Additional Study Procedures for

Network Integration Transmission

Service Requests

32.1 Notice of Need for System Impact

Study

After receiving a request for service,

the Transmission Provider shall

determine on a non-discriminatory basis

whether a System Impact Study is

needed. A description of the

Transmission Provider’s methodology

for completing a System Impact Study is

provided in Attachment D. If the

Transmission Provider determines that a

System Impact Study is necessary to

accommodate the requested service, it

shall so inform the Eligible Customer, as

soon as practicable. In such cases, the

Transmission Provider shall within

thirty (30) days of receipt of a

Completed Application, tender a System

Impact Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

System Impact Study. For a service

request to remain a Completed

Application, the Eligible Customer shall

execute the System Impact Study

Agreement and return it to the

Transmission Provider within fifteen

(15) days. If the Eligible Customer elects

not to execute the System Impact Study

Agreement, its Application shall be

deemed withdrawn.

32.2 System Impact Study Agreement

and Compensation

(i) The System Impact Study

Agreement will clearly specify the

Transmission Provider’s estimate of the

actual cost, and time for completion of

the System Impact Study. The charge

shall not exceed the actual cost of the

study. In performing the System Impact

Study, the Transmission Provider shall

rely, to the extent reasonably

practicable, on existing transmission

planning studies. The Eligible Customer

will not be assessed a charge for such

existing studies; however, the Eligible

Customer will be responsible for charges

associated with any modifications to

existing planning studies that are

reasonably necessary to evaluate the

impact of the Eligible Customer’s

request for service on the Transmission

System.

(ii) If in response to multiple Eligible

Customers requesting service in relation

to the same competitive solicitation, a

single System Impact Study is sufficient

for the Transmission Provider to

accommodate the service requests, the

costs of that study shall be pro-rated

among the Eligible Customers.

(iii) For System Impact Studies that

the Transmission Provider conducts on

its own behalf, the Transmission

Provider shall record the cost of the

System Impact Studies pursuant to

Section 8.

32.3 System Impact Study Procedures

Upon receipt of an executed System

Impact Study Agreement, the

Transmission Provider will use due

diligence to complete the required

System Impact Study within a sixty (60)

day period. The System Impact Study

shall identify any system constraints

and redispatch options, additional

Direct Assignment Facilities or Network

Upgrades required to provide the

requested service. In the event that the

Transmission Provider is unable to

complete the required System Impact

Study within such time period, it shall

so notify the Eligible Customer and

provide an estimated completion date

along with an explanation of the reasons

why additional time is required to

complete the required studies. A copy of

the completed System Impact Study and

related work papers shall be made

available to the Eligible Customer. The

Transmission Provider will use the

same due diligence in completing the

System Impact Study for an Eligible

Customer as it uses when completing

studies for itself. The Transmission

Provider shall notify the Eligible

Customer immediately upon completion

of the System Impact Study if the

Transmission System will be adequate

to accommodate all or part of a request

for service or that no costs are likely to

be incurred for new transmission

facilities or upgrades. In order for a

request to remain a Completed

Application, within fifteen (15) days of

completion of the System Impact Study

the Eligible Customer must execute a

Service Agreement or request service

without an executed Service Agreement

pursuant to Section 29.1, or the

Application shall be deemed terminated

and withdrawn.
50328 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

32.4 Facilities Study Procedures

If a System Impact Study indicates

that additions or upgrades to the

Transmission System are needed to

supply the Eligible Customer’s service

request, the Transmission Provider,

within thirty (30) days of the

completion of the System Impact Study,

shall tender to the Eligible Customer a

Facilities Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

Facilities Study. For a service request to

remain a Completed Application, the

Eligible Customer shall execute the

Facilities Study Agreement and return it

to the Transmission Provider within

fifteen (15) days. If the Eligible

Customer elects not to execute the

Facilities Study Agreement, its

Application shall be deemed withdrawn

and its deposit shall be returned. Upon

receipt of an executed Facilities Study

Agreement, the Transmission Provider

will use due diligence to complete the

required Facilities Study within a sixty

(60) day period. If the Transmission

Provider is unable to complete the

Facilities Study in the allotted time

period, the Transmission Provider shall

notify the Eligible Customer and

provide an estimate of the time needed

to reach a final determination along

with an explanation of the reasons that

additional time is required to complete

the study. When completed, the

Facilities Study will include a good

faith estimate of: (i) The cost of Direct

Assignment Facilities to be charged to

the Eligible Customer, (ii) the Eligible

Customer’s appropriate share of the cost

of any required Network Upgrades, and

(iii) the time required to complete such

construction and initiate the requested

service. The Eligible Customer shall

advance funds to the Transmission

Provider for the construction of new

facilities, and such advance and

construction shall be provided for in a

separate agreement. If the construction

of new facilities requires the

expenditure of Transmission Provider

funds, such construction shall be

contingent upon the availability of

appropriated funds. The Eligible

Customer shall have thirty (30) days to

execute a construction agreement and a

Service Agreement or request service

without an executed Service Agreement

pursuant to Section 29.1, and provide

the required letter of credit or other

form of security, or the request no

longer will be a Completed Application

and shall be deemed terminated and

withdrawn.

33 Load Shedding and Curtailments

33.1 Procedures

Prior to the Service Commencement

Date, the Transmission Provider and the

Network Customer shall establish Load

Shedding and Curtailment procedures

pursuant to the Network Operating

Agreement with the objective of

responding to contingencies on the

Transmission System. The Parties will

implement such programs during any

period when the Transmission Provider

determines that a system contingency

exists and such procedures are

necessary to alleviate such contingency.

The Transmission Provider will notify

all affected Network Customers in a

timely manner of any scheduled

Curtailment.

33.2 Transmission Constraints

During any period when the

Transmission Provider determines that a

transmission constraint exists on the

Transmission System, and such

constraint may impair the reliability of

the Transmission Provider’s system, the

Transmission Provider will take

whatever actions, consistent with Good

Utility Practice, that are reasonably

necessary to maintain the reliability of

the Transmission Provider’s system. To

the extent the Transmission Provider

determines that the reliability of the

Transmission System can be maintained

by redispatching resources, the

Transmission Provider will initiate

procedures pursuant to the Network

Operating Agreement to redispatch all

Network Resources and the

Transmission Provider’s own resources

on a least-cost basis without regard to

the ownership of such resources. Any

redispatch under this section may not

unduly discriminate between the

Transmission Provider’s use of the

Transmission System on behalf of its

Native Load Customers and any

Network Customer’s use of the

Transmission System to serve its

designated Network Load.

33.3 Cost Responsibility for Relieving

Transmission Constraints

Whenever the Transmission Provider

implements least-cost redispatch

procedures in response to a

transmission constraint, the

Transmission Provider and Network

Customers will each bear a

proportionate share of the total

redispatch cost based on their respective

Load Ratio Shares.

33.4 Curtailments of Scheduled

Deliveries

If a transmission constraint on the

Transmission Provider’s Transmission

System cannot be relieved through the

implementation of least-cost redispatch

procedures and the Transmission

Provider determines that it is necessary

to Curtail scheduled deliveries, the

Parties shall Curtail such schedules in

accordance with the Network Operating

Agreement.

33.5 Allocation of Curtailments

The Transmission Provider shall, on a

non-discriminatory basis, Curtail the

transaction(s) that effectively relieve the

constraint. However, to the extent

practicable and consistent with Good

Utility Practice, any Curtailment will be

shared by the Transmission Provider

and Network Customer in proportion to

their respective Load Ratio Shares. The

Transmission Provider shall not direct

the Network Customer to Curtail

schedules to an extent greater than the

Transmission Provider would Curtail

the Transmission Provider’s schedules

under similar circumstances.

33.6 Load Shedding

To the extent that a system

contingency exists on the Transmission

Provider’s Transmission System and the

Transmission Provider determines that

it is necessary for the Transmission

Provider and the Network Customer to

shed load, the Parties shall shed load in

accordance with previously established

procedures under the Network

Operating Agreement.

33.7 System Reliability

Notwithstanding any other provisions

of this Tariff, the Transmission Provider

reserves the right, consistent with Good

Utility Practice and on a not unduly

discriminatory basis, to Curtail Network

Integration Transmission Service

without liability on the Transmission

Provider’s part for the purpose of

making necessary adjustments to,

changes in, or repairs on its lines,

substations and facilities, and in cases

where the continuance of Network

Integration Transmission Service would

endanger persons or property. In the

event of any adverse condition(s) or

disturbance(s) on the Transmission

Provider’s Transmission System or on

any other system(s) directly or

indirectly interconnected with the

Transmission Provider’s Transmission

System, the Transmission Provider,

consistent with Good Utility Practice,

also may Curtail Network Integration

Transmission Service in order to: (i)

Limit the extent or damage of the

adverse condition(s) or disturbance(s),

(ii) prevent damage to generating or

transmission facilities, or (iii) expedite

restoration of service. The Transmission

Provider will give the Network
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50329

Customer as much advance notice as is

practicable in the event of such

Curtailment. Any Curtailment of

Network Integration Transmission

Service will be not unduly

discriminatory relative to the

Transmission Provider’s use of the

Transmission System on behalf of its

Native Load Customers. The

Transmission Provider shall specify the

rate treatment and all related terms and

conditions applicable in the event that

the Network Customer fails to respond

to established Load Shedding and

Curtailment procedures.

34 Rates and Charges

The Network Customer shall pay the

Transmission Provider for any Direct

Assignment Facilities, Ancillary

Services, and applicable study costs,

consistent with Federal policy, along

with the following:

34.1 Monthly Demand Charge

The Network Customer shall pay a

monthly Demand Charge, which shall

be determined by multiplying its Load

Ratio Share times one twelfth (1⁄12) of

the Transmission Provider’s Annual

Transmission Revenue Requirement

specified in Schedule H.

34.2 Determination of Network

Customer’s Monthly Network Load

The Network Customer’s monthly

Network Load is its hourly load

(including its designated Network Load

not physically interconnected with the

Transmission Provider under Section

31.3) coincident with the Transmission

Provider’s Monthly Transmission

System Peak.

34.3 Determination of Transmission

Provider’s Monthly Transmission

System Load

The Transmission Provider’s monthly

Transmission System load is the

Transmission Provider’s Monthly

Transmission System Peak minus the

coincident peak usage of all Firm PointTo-Point Transmission Service

customers pursuant to Part II of this

Tariff plus the Reserved Capacity of all

Firm Point-To-Point Transmission

Service customers.

34.4 Redispatch Charge

The Network Customer shall pay a

Load Ratio Share of any redispatch costs

allocated between the Network

Customer and the Transmission

Provider pursuant to Section 33. To the

extent that the Transmission Provider

incurs an obligation to the Network

Customer for redispatch costs in

accordance with Section 33, such

amounts shall be credited against the

Network Customer’s bill for the

applicable month.

34.5 Stranded Cost Recovery

The Transmission Provider may seek

to recover stranded costs from the

Network Customer in a manner

consistent with applicable Federal law

and regulations.

35 Operating Arrangements

35.1 Operation Under the Network

Operating Agreement

The Network Customer shall plan,

construct, operate and maintain its

facilities in accordance with Good

Utility Practice and in conformance

with the Network Operating Agreement.

35.2 Network Operating Agreement

The terms and conditions under

which the Network Customer shall

operate its facilities and the technical

and operational matters associated with

the implementation of Part III of the

Tariff shall be specified in the Network

Operating Agreement. The Network

Operating Agreement shall provide for

the Parties to (i) Operate and maintain

equipment necessary for integrating the

Network Customer within the

Transmission Provider’s Transmission

System (including, but not limited to,

remote terminal units, metering,

communications equipment and

relaying equipment), (ii) transfer data

between the Transmission Provider and

the Network Customer (including, but

not limited to, heat rates and

operational characteristics of Network

Resources, generation schedules for

units outside the Transmission

Provider’s Transmission System,

interchange schedules, unit outputs for

redispatch required under Section 33,

voltage schedules, loss factors and other

real time data), (iii) use software

programs required for data links and

constraint dispatching, (iv) exchange

data on forecasted loads and resources

necessary for long-term planning, and

(v) address any other technical and

operational considerations required for

implementation of Part III of the Tariff,

including scheduling protocols. The

Network Operating Agreement will

recognize that the Network Customer

shall either: (i) Operate as a Control

Area under applicable guidelines of the

North American Electric Reliability

Council (NERC) and the applicable

regional reliability council, (ii) satisfy

its Control Area requirements, including

all necessary Ancillary Services, by

contracting with the Transmission

Provider, or (iii) satisfy its Control Area

requirements, including all necessary

Ancillary Services, by contracting with

another entity, consistent with Good

Utility Practice, which satisfies NERC

and the applicable regional reliability

council requirements. The Transmission

Provider shall not unreasonably refuse

to accept contractual arrangements with

another entity for Ancillary Services.

The Network Operating Agreement is

included in Attachment G.

35.3 Network Operating Committee

A Network Operating Committee

(Committee) shall be established to

coordinate operating criteria for the

Parties’ respective responsibilities under

the Network Operating Agreement. Each

Network Customer shall be entitled to

have at least one representative on the

Committee. The Committee shall meet

from time to time as need requires, but

no less than once each calendar year.

Schedule 1

Scheduling, System Control and

Dispatch Service

This service is required to schedule

the movement of power through, out of,

within, or into a Control Area. This

service can be provided only by the

operator of the Control Area in which

the transmission facilities used for

transmission service are located.

Scheduling, System Control and

Dispatch Service is provided directly by

the Transmission Provider if the

Transmission Provider is the Control

Area Operator or indirectly by the

Transmission Provider making

arrangements with the Control Area

operator that performs this service for

the Transmission Provider’s

Transmission System. The Transmission

Customer must purchase this service

from the Transmission Provider or the

Control Area operator. The charges for

Scheduling, System Control and

Dispatch Service are to be based on the

rates referred to below. To the extent the

Control Area operator performs this

service for the Transmission Provider,

charges to the Transmission Customer

are to reflect only a pass-through of the

costs charged to the Transmission

Provider by that Control Area operator.

The charges for Scheduling, System

Control and Dispatch Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Scheduling,

System Control and Dispatch Service

upon written notice to the Transmission
50330 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

Customer. Any change to the charges to

the Transmission Customer for

Scheduling, System Control and

Dispatch Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations, and policies, and attached

to and made part of the applicable

Service Agreement. The Transmission

Provider shall charge the Transmission

Customer in accordance with the rate

then in effect.

Schedule 2

Reactive Supply and Voltage Control

From Generation Sources Service

In order to maintain transmission

voltages on the Transmission Provider’s

transmission facilities within acceptable

limits, generation facilities under the

control of the Control Area operator are

operated to produce or absorb reactive

power. Thus, Reactive Supply and

Voltage Control from Generation

Sources Service must be provided for

each transaction on the Transmission

Provider’s transmission facilities. The

amount of Reactive Supply and Voltage

Control from Generation Sources

Service that must be supplied with

respect to the Transmission Customer’s

transaction will be determined based on

the reactive power support necessary to

maintain transmission voltages within

limits that are generally accepted in the

region and consistently adhered to by

the Transmission Provider.

Reactive Supply and Voltage Control

from Generation Sources Service can be

provided directly by the Transmission

Provider if the Transmission Provider is

the Control Area operator or indirectly

by the Transmission Provider making

arrangements with the Control Area

operator that performs this service for

the Transmission Provider’s

Transmission System. The Transmission

Customer must purchase this service

from the Transmission Provider or the

Control Area operator. The charges for

such service will be based upon the

rates referred to below. To the extent the

Control Area operator performs this

service for the Transmission Provider,

charges to the Transmission Customer

are to reflect only a pass-through of the

costs charged to the Transmission

Provider by the Control Area Operator.

The charges for Reactive Supply and

Voltage Control from Generation

Sources Service are set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations, and policies.

The Transmission Provider may

modify the charges for Reactive Supply

and Voltage Control from Generation

Sources Service upon written notice to

the Transmission Customer. Any change

to the charges to the Transmission

Customer for Reactive Supply and

Voltage Control from Generation

Sources Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 3

Regulation and Frequency Response

Service

Regulation and Frequency Response

Service is necessary to provide for the

continuous balancing of resources,

generation and interchange, with load

and for maintaining scheduled

interconnection frequency at sixty

cycles per second (60 Hz). Regulation

and Frequency Response Service is

accomplished by committing on-line

generation whose output is raised or

lowered, predominantly through the use

of automatic generating control

equipment, as necessary to follow the

moment-by-moment changes in load.

The obligation to maintain this balance

between resources and load lies with

the Transmission Provider (or the

Control Area operator that performs this

function for the Transmission Provider).

The Transmission Provider must offer

this service when the transmission

service is used to serve load within its

Control Area. The Transmission

Customer must either purchase this

service from the Transmission Provider

or make alternative comparable

arrangements to satisfy its Regulation

and Frequency Response Service

obligation. The charges for Regulation

and Frequency Response Service are

referred to below. The amount of

Regulation and Frequency Response

Service may be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The charges for Regulation and

Frequency Response Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Regulation and

Frequency Response Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Regulation and Frequency Response

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 4

Energy Imbalance Service

Energy Imbalance Service is provided

when a difference occurs between the

scheduled and the actual delivery of

energy to a load located within a

Control Area over a single hour. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either obtain this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Energy Imbalance Service

obligation. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission Provider shall

establish a deviation band of +/¥1.5

percent (with a minimum of 2 MW) of

the scheduled transaction to be applied

hourly to any energy imbalance that

occurs as a result of the Transmission

Customer’s scheduled transaction(s).

Parties should attempt to eliminate

energy imbalances within the limits of

the deviation band within thirty (30)

days or within such other reasonable

period of time as is generally accepted

in the region and consistently adhered

to by the Transmission Provider. If an

energy imbalance is not corrected

within thirty (30) days or a reasonable

period of time that is generally accepted

in the region and consistently adhered

to by the Transmission Provider, the

Transmission Customer will

compensate the Transmission Provider

for such service. Energy imbalances

outside the deviation band will be

subject to charges to be specified by the

Transmission Provider. Compensation
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50331

for Energy Imbalance Service will be as

set forth below.

The compensation for Energy

Imbalance Service is set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations, and policies.

The Transmission Provider may

modify the compensation for Energy

Imbalance Service upon written notice

to the Transmission Customer. Any

change to the compensation to the

Transmission Customer for Energy

Imbalance Service shall be as set forth

in a subsequent rate schedule

promulgated pursuant to the above

procedures and attached to and made

part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 5

Operating Reserve—Spinning Reserve

Service

Spinning Reserve Service is needed to

serve load immediately in the event of

a system contingency. Spinning Reserve

Service may be provided by generating

units that are on-line and loaded at less

than maximum output. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Spinning Reserve Service

obligation. The charges for Spinning

Reserve Service are referred to below.

The amount of Spinning Reserve

Service may be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The charges for Operating Reserve—

Spinning Reserve Service are set forth in

the appropriate rate schedule attached

to and made part of the applicable

Service Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations, and policies.

The Transmission Provider may

modify the charges for Operating

Reserve—Spinning Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Spinning Reserve

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 6

Operating Reserve—Supplemental

Reserve Service

Supplemental Reserve Service is

needed to serve load in the event of a

system contingency; however, it is not

available immediately to serve load but

rather within a short period of time.

Supplemental Reserve Service may be

provided by generating units that are

on-line but unloaded, by quick-start

generation or by interruptible load. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Supplemental Reserve Service

obligation. The charges for

Supplemental Reserve Service are

referred to below. The amount of

Supplemental Reserve Service may be

set forth in the Service Agreement. To

the extent the Control Area operator

performs this service for the

Transmission Provider, charges to the

Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The charges for Operating Reserve—

Supplemental Reserve Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Operating

Reserve—Supplemental Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Supplemental

Reserve Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 7

Long-Term Firm and Short-Term Firm

Point-to-Point Transmission Service

The Transmission Customer shall

compensate the Transmission Provider

each month for Reserved Capacity

pursuant to its rate schedule for Firm

Point-to-Point Transmission Service

attached to and made a part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Firm Point-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 the

above procedures and attached to and

made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts (including requests for use by

one’s wholesale merchant or an

affiliate’s use) must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from point(s) of receipt to

point(s) of delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Schedule 8

Non-Firm Point-To-Point Transmission

Service

The Transmission Customer shall

compensate the Transmission Provider

for Non-Firm Point-to-Point

Transmission Service pursuant to its

rate schedule for Non-Firm Point-toPoint Transmission Service attached to

and made a part of the applicable
50332 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

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 the

above procedures and attached to and

made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts (including requests for use by

one’s wholesale merchant or an

affiliate’s use) must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from point(s) of receipt to

point(s) of delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Attachment A

Form Of Service Agreement For Firm

Point-To-Point Transmission Service

Southwestern intends for future

Service Agreements for Firm Point-toPoint Transmission Service to be

constituted as follows:

Type 1—Long-Term Firm

Point-to-Point Transmission Service

Agreements will be executed for each

Point-to-Point arrangement, and will

consist of the following components:

a. The initial document with

signatures of the Parties (Part A), similar

to the initial document form suggested

in Attachment A of the Pro Forma Tariff

published as Appendix B of FERC Order

888–A, with added provisions to

include, but not be limited to:

i. Provisions reserving the right to

change rates and contract provisions

which may be affected by statutory and

regulatory requirements imposed on the

Transmission Provider, as well as

changes in losses and other operational

matters which may be affected by

changing conditions for operation of the

Transmission Provider’s Transmission

System.

ii. Requirements for conforming to the

interchange standards of the North

American Electric Reliability Council

and the Southwest Power Pool.

iii. Limitations on the Transmission

Provider’s obligations to provide for

deficiencies in Third-Party resources

and to notify parties in regard to

suspensions or reductions due to the

actions of Third Parties.

b. The Specifications for Long-Term

Firm Transmission Service (Part B), in

a form similar to that of the

specification document suggested in

Attachment A of the Pro Forma Tariff

published as Appendix B of FERC Order

888–A, with added provisions to

include, but not be limited to:

i. Describing the service from

information provided in the

Transmission Customer’s Completed

Application.

ii. Listing of charges, including

information on Ancillary Services.

c. The General Provisions Applicable

to Transmission Service (Part C),

including, but not limited to:

i. Special payment terms including

provision for sending payments to a

U.S. Treasury lockbox, payment by EFT,

and other applicable procedures relating

to billing and payment in addition to

those provided in the Tariff.

ii. Standard provisions required by a

Federal agency in its contracts, such as

availability of funds and certain

socioeconomic clauses.

iii. Facilities issues including

environmental and safety provisions for

entry and use, if any, of the

Transmission Provider’s property by

representatives of the Transmission

Customer, and provisions related to

upgrade of facilities and mutual

assistance of the Parties. These

provisions would not be included in any

contract with a Transmission Customer

to which they are not applicable.

Type 2—Short-Term Firm

Point-to-Point Transmission Service

Agreements will be executed as

enabling agreements for a specified term

under which the Transmission

Customer can request various specific

transactions in accordance with the

Tariff during the term of the Agreement,

and will consist of the following

components:

a. The initial document as described

above in 1. (Part A),

b. General Terms and Conditions for

Short-Term Firm Transmission Service,

(Part B), including, but not limited to:

i. Provision for the Transmission

Customer to fill out an Application

which lists certain information related

to proposed point-to-point arrangements

as ‘‘various.’’

ii Procedures for requesting service

and submitting schedules for specific

transactions under the enabling

agreement.

iii Parameters for maximum and

minimum periods for requesting ShortTerm Firm capacity reservations

modeled on Section 18.3 of the Tariff.

iv Listing of charges, including

information on Ancillary Services.

c. General Provisions Applicable to

Transmission Service (Part C), as

described above under Contract Type 1.

Attachment B

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

Service

Non-Firm Point-to-Point

Transmission Service Agreements will

be executed as enabling agreements for

a specified term under which the

Transmission Customer can request a

variety of transactions for Non-Firm

Transmission Service in accordance

with the Tariff during the term of the

agreement, and will consist of the

following components:

1. The initial document with

signatures of the Parties (Part A), similar

to the initial document form suggested

in Attachment B of the Pro Forma Tariff

published as Appendix B of FERC Order

888–A, with added provisions to

include, but not be limited to:

a. Provisions reserving the right to

change rates and contract provisions

which may be affected by statutory and

regulatory requirements imposed on the

Transmission Provider, as well as

changes in losses and other operational

matters which may be affected by

changing conditions for operation of the

Transmission Provider’s Transmission

System.

b. Requirements for conforming to the

interchange standards of the North

American Electric Reliability Council

and the Southwest Power Pool.

c. Limitations on the Transmission

Provider’s obligations to provide for

deficiencies in Third-Party resources

and to notify parties in regard to

suspensions or reductions due to the

actions of Third Parties.

2. The General Terms and Conditions

for Non-Firm Transmission Service (Part

B), including, but not limited to:

a. Provision for the Transmission

Customer to fill out an Application
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50333

which lists information on proposed

point-to-point arrangements as

‘‘various.’’

b. Procedures for requesting service

and submitting schedules for individual

transactions.

c. Listing of charges, including

information on Ancillary Services.

3. The General Provisions Applicable

to Transmission Service (Part C),

including, but not limited to:

a. Special payment terms including

provision for sending payments to a

U.S. Treasury lockbox, payment by EFT,

and other applicable procedures relating

to billing and payment in addition to

those provided in the Tariff.

b. Standard provisions required by a

Federal agency in its contracts, such as

availability of funds and socioeconomic

clauses.

c. Facilities issues including

environmental and safety provisions for

entry and use, if any, of the

Transmission Provider’s property by

representatives of the Transmission

Customer, and provisions related to

upgrade of facilities and mutual

assistance of the Parties. These

provisions would not be included in any

contract with a Transmission Customer

to which they are not applicable.

Attachment C

Methodology to Assess Available

Transmission Capability

The Transmission Provider is a

member of the Southwest Power Pool

(SPP), and follows the SPP’s approach

in the determination of Available

Transfer Capability (ATC) and Total

Transfer Capability. The SPP does

seasonal transfer studies to determine

the inter-area transfer capabilities. The

methodology uses standard incremental

transfer capability techniques that

recognize thermal, voltage, and stability

limitations as well as contractual

limitations. This methodology is based

on NERC Criteria, Operating Policies,

and Reference Documents related to

interchange and transfer capability

estimates.

The Transmission Provider will post

on the OASIS the values calculated by

the SPP. When ATC approaches zero for

any interface, the Transmission Provider

may do dedicated, off-line studies in

accordance with SPP methodology to

update the seasonal values of ATC

calculated by the SPP.

Attachment D

Methodology for Completing a System

Impact Study

The Transmission Provider may

require System Impact Studies to

determine the feasibility of providing

Transmission Service under this Tariff.

The System Impact Studies will follow

the criteria and procedures as described

below. In determining the level of

capacity available for new Transmission

Service requests, the Transmission

Provider may exclude the capacity

needed to meet current and reasonably

forecasted load of Native Load

Customers and Network Customers,

existing Firm Point-to-Point

Transmission Service customers,

previously pending applications for

Firm Point-to-Point Transmission

Service, and the capacity needed to

meet existing contractual obligations.

Point-To-Point Service

The Transmission Provider will do a

System Impact Study for a Point-toPoint Transmission Service request by

simulating the proposed transaction

along with all other contracted and

pending uses of the transmission system

of equal or greater priority. Criteria will

be the same as those used to determine

the ATC limits posted on the OASIS.

Network Integration Service

The Transmission Provider will do a

System Impact Study for a Network

Integration Transmission Service

request using the criteria and

assessment practices as detailed in Parts

4 and 5 of the Transmission Provider’s

annual FERC Form 715 submittal.

Attachment E

Index of Point-To-Point Transmission

Service Customers

Customer Date of Service Agreement

This Attachment E is intentionally left

blank.

Attachment F

Form of Service Agreement For Network

Integration Transmission Service

Note: Transmission Provider will not

immediately offer Network Integration

Transmission Service due to limits in its

Transmission System and to concerns

relating to its statutory and regulatory

requirements to set rates to recover costs

and to repay the Federal investment in

the generation and transmission system

from which it markets Federal power

and associated energy as well as pointto-point transmission services. If and

when Network Integration Service can

be offered, the Transmission Provider

will develop a suitable service

agreement form which will be

constituted as follows:

1. An initial document with

signatures of the Parties (Part A), similar

to the initial document form suggested

in Attachment A of the Pro Forma Tariff

published as Appendix B of FERC Order

888–A, with added provisions to

include, but not be limited to:

a. Provisions reserving the right to

change rates and contract provisions

which may be affected by statutory and

regulatory requirements imposed on the

Transmission Provider, as well as

changes in losses and other operational

matters which may be affected by

changing conditions for operation of the

Transmission Provider’s Transmission

System.

b. Requirements for conforming to the

interchange standards of the North

American Electric Reliability Council

and the Southwest Power Pool.

c. Limitations on the Transmission

Provider’s obligations to provide for

deficiencies in Third-Party resources

and to provide redispatching services.

d. Recognition that the Transmission

Provider’s obligation to construct new

or upgraded facilities to provide

capacity to meet the Network

Customer’s loads is specifically

contingent on availability of funds from

the U.S. Congress.

2. The Specifications for Network

Transmission Service (Part B), in a form

similar to that of the specification

document suggested in Attachment A of

the Pro Forma Tariff published as

Appendix B of FERC Order 888–A, with

added provisions to include, but not be

limited to:

a. Describing the service from

information provided in the Network

Customer’s Completed Application.

b. Reading in the separately

negotiated Network Operating

Agreement (See Attachment G).

c. Detailing the charges associated

with the service, including applicable

Ancillary Services and penalties for

unauthorized use of the service.

d. Methods for computing Real Power

Losses and for the Transmission

Customer to provide for such losses to

the Transmission Provider.

3. A separately negotiated and

attached Network Operating Agreement.

4. Transmission Provider’s economic

basis for determining network service

charges.

5. The General Provisions Applicable

to Transmission Service (Part C),

including, but not limited to:

a. Special payment terms including

provision for sending payments to a

U.S. Treasury lockbox, payment by EFT,

and other applicable procedures relating

to billing and payment in addition to

those provided in the Tariff.

b. Standard provisions required by a

Federal agency in its contracts, such as

availability of funds, and socioeconomic

clauses.

c. Facilities issues including

environmental and safety provisions for
50334 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

entry and use, if any, of the

Transmission Provider’s property by

representatives of the Transmission

Customer, and provisions related to

upgrade of facilities and mutual

assistance of the Parties.

Attachment G

Network Operating Agreement

To be provided by the Transmission

Provider at such time as the

Transmission Provider has negotiated or

offered a Network Integration

Transmission Service Agreement. The

terms and conditions under which the

Network Customer will be required to

operate its facilities and the technical

and operational matters associated with

the implementation of Network

Integration Transmission Service will be

specified in a separate Network

Operating Agreement and appended to

the applicable Service Agreement.

The Network Operating Agreement

may include, but not be limited to,

provisions addressing the following:

Authorized Representatives of the

Parties

Network Operating Committee

Load Following

System Protection

Redispatch to Manage Transmission

Constraints

Maintenance of Facilities

Load Shedding

Operation Impacts

Service Conditions

Data, Information and Reports

Metering

Communications

System Regulation and Operating

Reserves

Assignment

Notices

Accounting for Transmission Losses

Ancillary Services

Penalties for Unauthorized Use of

Transmission Provider’s System

Attachment H

Annual Transmission Revenue

Requirement For Network Integration

Transmission Service

1.0 The Annual Transmission Revenue

Requirement for purposes of the

Network Integration Transmission

Service is proposed to be

$llllll.

In the event that the Transmission

Provider is able to provide Network

Integration Transmission Service, the

amount provided above will be based on

the annualized costs associated with

operation and maintainance of the

Transmission System and the

Transmission Provider’s obligation to

repay the costs of its transmission

facilities. Such amount may be revised

annually in accordance with other

standard procedures of the

Transmission Provider.

The pro rata share of each applicant

which may be granted Network

Integration Transmission Service will be

determined by an algorithm which has

not yet been developed.

Attachment I

Index of Network Integration

Transmission Service Customers

Customer Date of Service Agreement

This Attachment I is intentionally left

blank.

Attachment J

Authorities and Obligations

Southwestern Power Administration

(Southwestern) was established in 1943

pursuant to Section 5 of the Flood

Control Act of 1944 (58 Stat. 887, 890;

16 U.S.C. 825s) and Pub. L. 95–456 (92

Stat. 1230; 16 U.S.C. 825s–3).

Southwestern was organized as part of

the Department of the Interior, but

became part of the Department of

Energy pursuant to Section 302 of the

Department of Energy Organization Act

(91 Stat. 578; 42 U.S.C. 7152) in 1977.

According to the Flood Control Act,

Southwestern is to market hydroelectric

power and energy generated at U.S.

Army Corps of Engineers Dams in

excess of project needs ‘‘to encourage

the most widespread use thereof at the

lowest possible rates to consumers

consistent with sound business

principles.* * * Preference in the sale

of such power and energy shall be given

to public bodies and cooperatives.’’

Further, ‘‘only such transmission lines

and related facilities as may be

necessary in order to make the power

and energy generated at such projects

available in wholesale quantities for

sale * * *’’ may be constructed or

acquired to fulfill this mission.

Southwestern markets power and

associated energy from hydroelectric

generation projects in the States of

Arkansas, Missouri, Oklahoma, and

Texas to cooperative, municipal, and

military customers in those states as

well as the States of Kansas and

Louisiana. By statute, Southwestern’s

Transmission System was constructed

to enable the integration of

Southwestern’s hydroelectric power

resources to satisfy Southwestern’s

contractual obligations to its Federal

Customers, which have allocations of

Federal power. Southwestern sells

transmission service using Federally

owned or controlled facilities only to

the extent that transmission capacity is

available in excess of that necessary to

reliably deliver Federal power. In order

to fulfill its mission, Southwestern will

reserve transmission capacity sufficient

to deliver Federal power. Accordingly,

the Tariff shall apply only to the

marketing of such transmission capacity

in the system of Southwestern as is

excess to the requirements of

Southwestern’s primary mission.

Southwestern’s Federal Customers are

somewhat analogous to, and its nearest

equivalent of, Native Load Customers as

defined in the Tariff. Southwestern is,

by the nature of its resources and the

provisions of its power sales contracts,

a partial requirements supplier only.

Southwestern uses its transmission

system to integrate its resources to

reliably meet contract obligations rather

than to meet loads. These distinctions

mean, among other things, that

Southwestern is not obliged to meet

customer loads or to construct facilities

to meet loads, and thus has no ‘‘utility

responsibility.’’ to its Federal

Customers. However, for the purposes of

the Tariff, Southwestern will consider

its Federal Customers as the equivalent

of Native Load Customers.

Southwestern is not a jurisdictional

public utility under Sections 205 and

206 of the Federal Power Act and is not

specifically subject to the requirements

of the Federal Energy Regulatory

Commission’s (FERC or Commission)

Final Orders 888 and 888–A.

Southwestern is a transmitting utility

subject to Section 211 of the Federal

Power Act as amended by the Energy

Policy Act of 1992. Southwestern is also

subject to the reciprocity provisions of

FERC Orders 888 and 888–A. The

Department of Energy has issued a

Power Marketing Administration Open

Access Transmission Policy that

supports the intent of the FERC Final

Rule in Order 888 on Open Access

Transmission. This Open Access

Transmission Tariff is intended to

provide for transmission of non-Federal

power on the unused capacity of

transmission facilities under the

jurisdiction or control of Southwestern

in a manner consistent with the spirit

and intent of FERC Orders 888 and 888–

A.

Southwestern has prepared this Tariff

to provide transmission service

comparable to that required of

jurisdictional public utilities by FERC

Orders 888 and 888–A, and to

implement the spirit and intent of those

Orders consistent with the DOE Policy.

An entity desiring Transmission Service

from Southwestern must comply with

the application procedures outlined

therein. The review and approval

requirements detailed therein will apply

to all requesting parties. Southwestern
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50335

will perform the necessary studies or

assessments for evaluating requests for

Transmission Service as set forth in the

Tariff. Any facility construction or

interconnection necessary to provide

transmission service will be subject to

Southwestern’s Requirements for

Interconnection, which are available

upon request, and will require that

funds necessary for such construction

be submitted in advance to

Southwestern, subject to Southwestern’s

authority to receive such funds.

Based on a reasonable level of risk,

Southwestern has marketed the

maximum practical amount of power

from each of its projects, leaving little

flexibility for provision of additional

power services. Changes in water

conditions frequently affect the ability

of hydroelectric projects to meet

obligations on a short-term basis. The

unique characteristics and limitations of

the hydroelectric resource caused by

changing water conditions may limit

Southwestern’s ability to provide

certain generation-related services,

including some Ancillary Services and

any redispatching which may require

the use of Federal hydro resources.

Southwestern is committed to

providing comparable open-access

transmission service to any Eligible

Customer without discrimination, as has

been its practice throughout its history.

However, nothing in the Tariff shall

alter, amend, or abridge the statutory

and regulatory obligations of

Southwestern to market Federal Power

to Federal Customers and to repay the

Federal investment in the projects and

facilities from which Southwestern

markets power and energy.

Southwestern will provide Firm and

Non-Firm Point-to-Point Transmission

Service and, if practicable, Network

Integration Transmission Service,

consistent with the Tariff. The specific

terms and conditions for providing

transmission service to an Eligible

Customer will be set forth in a Service

Agreement.

[FR Doc. 97–25333 Filed 9–24–97; 8:45 am]

BILLING CODE 6450–01–P

ENVIRONMENTAL PROTECTION

AGENCY

[FRL–5898–6]

Public Meeting on Drinking Water

Issues

Notice is hereby given that the

Environmental Protection Agency (EPA)

is holding a workshop for purposes of

information exchange on issues related

to developing a national estimate of

waterborne disease occurrence. The

purpose of the workshop will be to

provide a brief review of the Safe

Drinking Water Act mandate to develop

a national estimate; review and discuss

current approaches to developing the

national estimate; review and discuss

planned and ongoing epidemiological

studies and the goals and methodologies

of these studies; and discuss approaches

for enhancing these studies as well as

identifying additional studies that might

be useful in improving the national

estimate. Experts in epidemiology,

biostatistics, public health and related

fields will be invited to the workshop to

offer their insight.

The meeting will take place on

October 9, 1997, from 8:30 a.m. until

5:30 p.m. and October 10, 1997 from

9:00 a.m. until 12:30 p.m., at the

Washington National Airport Hilton at

2399 Jefferson Davis Highway,

Arlington, VA 22202. The agenda will

include discussion of methods for

assessing rates of waterborne disease

and the economic impact of those

diseases. Discussion is expected to focus

on the extent to which planned and

ongoing studies can be used in

developing a national estimate and

other potentially viable approaches to

developing this national estimate.

EPA is inviting interested members of

the public to participate in the meeting,

which continues a series of public

meetings that the Agency has been

holding since last year on issues related

to the development of regulations to

control pathogens and disinfection

byproducts in drinking water. As with

all previous meetings in this series, EPA

is maintaining an open door policy to

allow members of the public to attend.

To assist EPA in managing limitations

on conference room seating, members of

the public who are interested in

attending are requested to contact

Valerie Blank of EPA’s Office of Ground

Water and Drinking Water. Members of

the public who are interested in

additional information about this or

other meetings in this series or who

would like to be included on the

mailing list to receive notice of further

meetings in this series are also

requested to contact Ms. Blank, who can

be reached at 401 M Street, SW, 4607,

Washington, DC 20460, (202) 260–8376,

blank.valerie@epamail.epa.gov.

Dated: September 19, 1997.

Elizabeth Fellows,

Acting Director, Office of Ground Water and

Drinking Water.

[FR Doc. 97–25504 Filed 9–24–97; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

[OPPTS–00224; FRL–5746–4]

Notice of Public Meeting on

Establishing a Program for LeadBased Paint Hazard Evaluation and

Reduction Products

AGENCY: Environmental Protection

Agency.

ACTION: Notice.

SUMMARY: EPA is announcing a public

meeting on September 29, 1997, in

Arlington, VA, to take suggestions from

a cross-section of stakeholders on the

development of a program to carry out

the testing and registration of lead-based

paint hazard evaluation and reduction

products as required under Section

405(f) of the Toxic Substances Control

Act (TSCA, 15 U.S.C. Section 2685(f).

DATES: The meeting will take place on

Monday, September 29, 1997, beginning

promptly at 6:00 p.m. and continuing

until 8:00 p.m.

ADDRESSES: The meeting will take place

at the Crystal Gateway Marriot Hotel,

1700 Jefferson Davis Highway,

Arlington, VA.

FOR FURTHER INFORMATION CONTACT:

Darlene Watford, National Program

Chemicals Division, (7404), Office of

Pollution Prevention and Toxics,

Environmental Protection Agency, 401

M St., SW., Washington, DC. 20460,

telephone: (202) 260–3989, fax: (202)

260–0001, e-mail:

watford.darlene@epamail.epa.gov.

SUPPLEMENTARY INFORMATION:

I. Background

On October 28, 1992, the Residential

Lead-Based Paint Hazard Reduction Act

of 1992, Title X of the Housing and

Community Development Act of 1992,

became law. Title X amended TSCA by

adding a new Title IV, the purpose of

which is to reduce the hazards from

lead in paint and coatings used in

housing, public and commercial

buildings, and other structures. Section

405(f) of TSCA stipulates that EPA

establish testing criteria, testing

protocols, and performance

characteristics as necessary to ensure to

the greatest extent possible that leadbased paint hazard evaluation and

reduction products introduced into

commerce are effective for the intended

use described by the manufacturer.

Several states have already begun to

pass lead laws and regulations which

establish lead prevention programs, as

well as the infrastructure necessary to

support such programs. Many of these

programs specify a set of performance

standards that must be met by lead