[Federal Register Volume 65, Number 212 (Wednesday, November 1, 2000)]
[Rules and Regulations]
[Pages 65262-65270]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27993]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 37

[Docket No. RM95-9-013]


Open Access Same-Time Information System and Standards of Conduct

Issued October 26, 2000.
AGENCY: Federal Energy Regulatory Commission (Commission).

ACTION: Order adopting revised ``Business Practice Standards for OASIS 
Transactions'' (BPS Document).

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SUMMARY: The Commission is revising the BPS Document adopted by the

[[Page 65263]]

Commission on February 25, 2000 in Open Access Same-Time Information 
System and Standards of Conduct, Order No. 638, FERC Stats. & Regs. 
para. 31,093 (2000). The revisions reflect the Commission's 
consideration of the comment received in response to the August 1, 2000 
order seeking comments in this proceeding. (92 FERC para. 61,147 
(2000)).

EFFECTIVE DATE: This order is effective on December 1, 2000.

ADDRESSES: Office of the Secretary, Federal Energy Regulatory 
Commission, 888 First Street, N.E., Washington, D.C. 20426. E-Mail 
address: ``<a href="/cdn-cgi/l/email-protection#7714181a1a12190359051a371112051459111213590204"><span class="__cf_email__" data-cfemail="30535f5d5d555e441e425d70565542531e5655541e4543">[email protected]</span></a>''.

FOR FURTHER INFORMATION CONTACT:

Marvin Rosenberg (Technical Information), Office of Markets, Tariffs, 
and Rates, Federal Energy Regulatory Commission, 888 First Street, 
N.E., Washington, D.C. 20426; (202) 208-1283.
Paul Robb (Technical Information), Office of Markets, Tariffs, and 
Rates, Federal Energy Regulatory Commission, 888 First Street, N.E., 
Washington, D.C. 20426; (202) 219-2702.
Sharon Dameron (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, N.E., 
Washington, D.C. 20426; (202) 208-2017.

SUPPLEMENTARY INFORMATION:

Order Adopting Revised ``Business Practice Standards for OASIS 
Transactions''

I. Introduction

    In this order, the Commission adopts revisions to the ``Business 
Practice Standards for OASIS Transactions'' (BPS) adopted by the 
Commission on February 25, 2000 in Open Access Same-Time Information 
System and Standards of Conduct, Order No. 638, FERC Stats. & Regs. 
para. 31,093 (2000). The Commission is adopting these changes after 
consideration of the comments filed in response to the Commission's 
August 1, 2000 order seeking comments on proposed changes to the 
BPS.\1\ Among other matters, the revisions concern the scheduling 
period for ``same-day'' and ``next-hour'' transactions and standards 
for Next Hour Market Service (NHM Service).
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    \1\ Open Access Same-Time Information System and Standards of 
Conduct, 92 FERC para. 61,147 (2000).
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II. Background

    In Order No. 638, the Commission adopted a set of uniform business 
practices (i.e., the BPS), implementing the Commission's policies on 
transmission service price negotiations and on improving interactions 
between transmission providers and customers over Open Access Same-Time 
Information System (OASIS) sites. Order No. 638 also contained a number 
of requests to the Market Interface Committee and the OASIS How Working 
Group (collectively, MIC/How Groups),\2\ including a request that the 
MIC/How Groups submit a report to the Commission, by June 29, 2000,\3\ 
providing recommendations for revisions to the BPS to reflect the 
Commission's findings in a December 16, 1999 order \4\ regarding NHM 
Service \5\ and to consider other changes.\6\
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    \2\ See Order No. 638, FERC Stats. & Regs. para. 31,093 at 
31,448-49.
    \3\ Ninety days from March 31, 2000, the date of publication of 
Order No. 638 in the Federal Register.
    \4\ North American Electric Reliability Council, 89 FERC para. 
61,277 (1999), reconsideration denied, 92 FERC para. 61,012 (2000).
    \5\ NHM Service would allow customers to reserve transmission 
service for a duration of one hour when the request is made no more 
than 60 minutes prior to the commencement of service. See Section 7 
of the BPS.
    \6\ See section 4.2.10.2 of the OASIS Standards and 
Communication Protocols Document (S&CP Document).
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    On June 16, 2000, the MIC/How Groups jointly submitted for 
Commission consideration recommendations to revise the BPS. The MIC/How 
Groups proposed a number of revisions, including revised definitions of 
the scheduling period for same-day and next-hour transactions in BPS 
Section 2.6.1, and a new section 7 with 16 new business practices 
covering NHM Service.\7\ These business practices defined NHM Service 
and listed it as a voluntary service that, if provided, must be 
provided in accordance with Standards 7.1-7.16. Among other matters, 
these standards set the time limits for such transactions, require NERC 
electronic tags (ETAGS) for reserving and designating such service, and 
discuss procedures for reserving such service, identifying path 
segments, and curtailing such service.
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    \7\ Other revisions to the BPS include: (1) Designation in Table 
1-1 of NHM Service as a standard product; (2) revisions to Tables 4-
2 and 4-3 and related provisions to reflect the availability of NHM 
Service and its priority vis-a-vis other transmission services; (3) 
revisions to Standards 4.8, 4.17, 5.4, and addition of a new 
Standard 4.2.7, to reflect recommended clarifications of applicable 
comment fields; (4) revisions to Standards 3.3, 3.6, 4.1, 4.13, 
4.15, 4.20, 4.24, 4.25, and 5.5 (by changing the word ``should'' to 
``shall'' to reflect that these standards were made mandatory in 
Order No. 638.
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    Our August 1, 2000 order invited comments on whether the Commission 
should adopt the recommended revisions to the BPS suggested by the MIC/
How Group, as modified by the Commission.\8\ Williams Energy Marketing 
and Trading Company (WEM&T) filed the sole comment in response to our 
August 1, 2000 order. In this order, we adopt the revisions 
contemplated in our August 1, 2000 order, and correct an error 
concerning the definition of ``same-day'' in Standard 2.6.1.
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    \8\ Open Access Same-Time Information System and Standards of 
Conduct, 92 FERC para. 61,147 (2000).
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III. Discussion

    WEM&T comments on three issues. First, WEM&T comments that the 
August 1, 2000 order appears to inadvertently retain the original 
definition of ``same-day,'' although the Commission was proposing to 
adopt a revised definition. Specifically, WEM&T notes that the 
definition in the Attachment to the August 1, 2000 order states:
    Standard 2.6.1: Same-day is (i) after 2 p.m. of the preceding day 
and (ii) more than one hour prior to the service start time.

WEM&T states that, consistent with the discussion in the August 1, 2000 
order, Standard 2.6.1 should read as follows:
    Standard 2.6.1: Same-day is after 2 p.m. of the preceding day.
    The Commission agrees that the definition in the Attachment to the 
August 1, 2000 order does not match the intent of that order. This was 
an inadvertent error. Accordingly, we revise Standard 2.6.1, as 
described above.
    Next, WEM&T requests that the Commission include a definition of 
NHM Service in the BPS. WEM&T contends that allowing individual 
transmission providers to devise their own definitions of NHM Service 
is not conducive to the creation of seamless interactions between 
regional transmission organizations.
    We deny WEM&T's request. It is predicated on the assumption that 
individual transmission providers are free to devise their own 
definitions of NHM Service. This assumption is not accurate. On July 7, 
2000, the Commission clarified that ``transmission providers wishing to 
adopt the NHM Service must do so by filing a tariff sheet that states 
the utility is adopting NERC's NHM Service, as accepted by the 
Commission in the December 16 order.'' \9\ Thus, individual 
transmission providers are not free to devise their own definitions of 
NHM Service, but rather, must file tariff sheets adopting NERC's NHM 
Service, which includes a

[[Page 65264]]

detailed and specific definition of NHM Service. Further, the July 7, 
2000 order also provided that if the Commission approves any revisions 
by NERC to the NHM Service, transmission providers must file tariff 
sheets with the Commission that reflect the changes.
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    \9\ North American Reliability Council, 92 FERC para. 61,012 at 
61,025. [Footnote omitted.]
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    Finally, WEM&T urges the Commission to require transmission 
providers to offer NHM Service. WEM&T states that mandatory NHM Service 
will enhance the development of more liquid and competitive electric 
markets.
    The Commission denies this request as beyond the scope of this 
proceeding which involves business practices, not modifications to the 
terms of the Commission's pro forma tariff.

The Commission orders

    (A) The revisions to the ``Business Practice Standards for OASIS 
Transactions'' contemplated by the August 1, 2000 order in Docket No. 
RM95-9-013 are adopted, with the exception of the change in Ordering 
Paragraph (B) below.
    (B) Standard 2.6.1 is revised to read as follows:
    Standard 2.6.1: Same-day is after 2 p.m. of the preceding day.

    By the Commission.
David P. Boergers,
Secretary.

Attachment A--Federal Energy Regulatory Commission--Business Practice 
Standards for Open Access Same-Time Information System (OASIS) 
Transactions

Version 1.2 (October 25, 2000)

Table of Contents

Section

Table of Contents
Section 1  Introduction
    1.1  Business Practice Standards
Section 2  Standard Terminology for Transmission and Ancillary 
Services
    2.1  Attribute Values Defining the Period of Service
    2.2  Attribute Values Defining Service Class
    2.3  Attribute Values Defining Service Types
    2.4  Curtailment Priorities
    2.5  Other Service Attribute Values
Section 3  OASIS Registration Procedures
    3.1  Entity Registration
    3.2  Process to Register Non-Standard Service Attribute Values
    3.3  Registration of Points of Receipt and Delivery
Section 4  On-Line Negotiation and Confirmation Process
    4.1  On-Line Price Negotiation in Short-Term Markets
    4.2  Phase IA Negotiation Process State Transition Diagram
    4.3  Negotiations Without Competing Bids
    4.4  Negotiations With Competing Bids for Constrained Resources
Section 5  Procurement of Ancillary and Other Services
    5.1  Introduction
    5.2  Transmission Provider Requirements
    5.3  Transmission Customer Requirements
Section 6  Pathnaming Standards
    6.1  Introduction
    6.2  Transmission Provider Requirements
Section 7  Next Hour Market Service
    7.1  Introduction
    7.2  Transmission Provider Requirements
Section 1  Introduction

    This document contains business practice standards designed to 
implement the Commission's policy related to on-line price 
negotiation and to improve the commercial operation of the Open 
Access Same-Time Information System (OASIS).

Section 1.1  Business Practice Standards

    This document adopts OASIS business practice standards as 
mandatory requirements.

Section 2  Standard Terminology for Transmission and Ancillary 
Services
Section 2.1  Attribute Values Defining the Period of Service

    The data templates of the Phase IA Standards & Communication 
Protocols (S&CP) Document have been developed with the use of 
standard service attributes in mind. What the Phase IA S&CP Document 
does not offer are specific definitions for each attribute value. 
This section offers standards for these service attribute 
definitions to be used in conjunction with the Phase IA data 
templates.
    Fixed services are associated with transmission services whose 
periods align with calendar periods such as a day, week, or month. 
Sliding services are fixed in duration, such as a week or month, but 
the start and stop time may slide. For example a Sliding week could 
start on Tuesday and end on the following Monday. Extended allows 
for services in which the start time may slide and also the duration 
may be longer than a standard length. For example an Extended week 
of service could be nine consecutive days. Various transmission 
service offerings using these terms are defined in Standards 2.1.1 
through 2.1.14 below. Next__Increment indicates the next available 
full Service__Increment, such as the next hour, next day, or next 
week. Next__Increment is added at this time to address Next Hour 
Market Service, but may be used in the future to denote other 
products.
    Table 1-1 identifies the standard terminology in OASIS Phase IA 
for the attributes SERVICE_INCREMENT (Hourly, Daily, Weekly, 
Monthly, and Yearly) and TS_WINDOW (Fixed, Sliding, Extended, and 
Next_Increment). Values shown in Table 1-1 as N/A (Not Applicable) 
are not sufficiently common in the market to require standards.
    Next Hour Market Service, a new pro forma service, is denoted as 
having a Service Increment of Hourly and a TS__WINDOW of 
Next__Increment.

                        Table 1-1.--Standard Service Period Attribute Values in Phase IA
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                                         Fixed              Sliding          Extended \1\       Next_Increment
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Hourly..........................                  X                 N/A                 N/A                X\2\
Daily...........................                  X                   X                   X                 N/A
Weekly..........................                  X                   X                   X                 N/A
Monthly.........................                  X                   X                   X                 N/A
Yearly..........................                  X                   X                   X                N/A
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\1\ Included in the Phase IA S&CP Data Dictionary, Version 1.3, issued September 29, 1998.
\2\ Next Hour Market Service is identified by Service Increment = Hourly and TS_WINDOW = Next_Increment.

    The existence of an attribute value in this table does not imply 
the services must be offered by a Transmission Provider. 
Requirements as to which services must be offered are defined by 
regulation and tariffs. Likewise, absence of a service period value 
in Table 1-1 does not restrict a Transmission Provider from offering 
a service. The intent of the table is to establish common 
terminology associated with standard products.
    Each service period value assumes a single time zone specified 
by the Transmission Provider. It is recognized that daylight time 
switches must be accommodated in practice, but they have been 
omitted here for the purpose of simplicity.
    Standard 2.1: A Transmission Provider shall use the values and 
definitions below for the service period attributes, 
Service_Increment and TS_Window for all transmission services 
offered on OASIS, or shall post alternative service period values 
and associated definitions on the OASIS Home Page at http://www.tsin.com, or shall use existing attribute values and definitions 
posted by other Transmission Providers. (See Section 3 for 
registration requirements.)
    Standard 2.1.1: Fixed Hourly--The service starts at the 
beginning of a clock hour and stops at the end of a clock hour.
    Standard 2.1.2: Fixed Daily--The service starts at 00:00 and 
stops at 24:00 of the

[[Page 65265]]

same calendar date (same as 00:00 of the next consecutive calendar 
date).
    Standard 2.1.3: Fixed Weekly--The service starts at 00:00 on 
Monday and stops at 24:00 of the following Sunday (same as 00:00 of 
the following Monday).
    Standard 2.1.4: Fixed Monthly--The service starts at 00:00 on 
the first date of a calendar month and stops at 24:00 on the last 
date of the same calendar month (same as 00:00 of the first date of 
the next consecutive month).
    Standard 2.1.5: Fixed Yearly--The service starts at 00:00 on the 
first date of a calendar year and ends at 24:00 on the last date of 
the same calendar year (same as 00:00 of the first date of the next 
consecutive year).
    Standard 2.1.6: Sliding Daily--The service starts at the 
beginning of any hour of the day and stops exactly 24 hours later at 
the same time on the next day.
    Standard 2.1.7: Sliding Weekly--The service starts at 00:00 of 
any date and stops exactly 168 hours later at 00:00 on the same day 
of the next week.
    Standard 2.1.8: Sliding Monthly--The service starts at 00:00 of 
any date and stops at 00:00 on the same date of the next month (28-
31 days later). If there is no corresponding date in the following 
month, the service stops at 24:00 on the last day of the next month.

For example: Sliding Monthly starting at 00:00 on January 30 would 
stop at 24:00 on February 28 (same as 00:00 March 1).

    Standard 2.1.9: Sliding Yearly--The service starts at 00:00 of 
any date and stops at 00:00 on the same date of the following year. 
If there is no corresponding date in the following year, the service 
stops at 24:00 on the last day of the same month in the following 
year.

For example Sliding Yearly service starting on February 29 would 
stop on February 28 of the following year.

    Standard 2.1.10: Extended Daily--The service starts at any hour 
of a day and stops more than 24 hours later and less than 168 hours 
later.
    Standard 2.1.11: Extended Weekly--The service starts at 00:00 of 
any date and stops at 00:00 more than one week later, but less than 
four weeks later.
    Standard 2.1.12: Extended Monthly--The service starts at 00:00 
of any date and stops at 00:00 more than one month later, but less 
than twelve months later.
    Standard 2.1.13: Extended Yearly--The service starts at 00:00 of 
any date and stops at 00:00 more than one year later, but must be 
requested in increments of full years.
    Standard 2.1.14: NEXT_INCREMENT HOURLY--The service starts at 
the beginning of the next clock hour and stops at the end of that 
clock hour.

Section 2.2  Attribute Values Defining Service Class
    Standard 2.2: A Transmission Provider shall use the values and 
definitions below to describe the service class, TS_CLASS, for 
transmission services offered on OASIS, or shall post alternative 
TS_CLASS attribute values and associated definitions on the OASIS 
Home Page at http://www.tsin.com, or shall use the attribute values 
and definitions posted by other Transmission Providers. (See Section 
3 for registration requirements.)
    Standard 2.2.1: Firm--Transmission service that always has 
priority over NONFIRM transmission service and includes Native Load 
Customers, Network Customers, and any transmission service not 
classified as non-firm in accordance with the definitions in the pro 
forma tariff.
    Standard 2.2.2: Non-Firm--Transmission service that is reserved 
and/or scheduled on an as-available basis and is subject to 
curtailment or interruption at a lesser priority compared to Firm 
transmission service, including Native Load Customers and Network 
Customers, in accordance with the definitions in the pro forma 
tariff.
Section 2.3  Attribute Values Defining Service Types
    Standard 2.3: A Transmission Provider shall use the values and 
definitions below to describe the service type, TS_TYPE, for 
transmission services offered on OASIS, or shall post alternative 
attribute values and associated definitions on the OASIS Home Page 
at http://www.tsin.com, or shall use the attribute values and 
definitions posted by other Transmission Providers. (See Section 3 
for registration requirements.)
    Standard 2.3.1: Point-to-point (PTP)--Transmission service that 
is reserved and/or scheduled between specified Points of Receipt and 
Delivery pursuant to Part II of the pro forma tariff and in 
accordance with the definitions in the pro forma tariff.
    Standard 2.3.2: Network--Network Integration Transmission 
Service that is provided to serve a Network Customer load pursuant 
to Part III of the pro forma tariff and in accordance with the 
definitions in the pro forma tariff.

Section 2.4  Curtailment Priorities
    Standard 2.4: A Transmission Provider that has adopted NERC TLR 
Procedures shall use the curtailment priority definitions contained 
in NERC TLR Procedures for NERC CURTAILMENT PRIORITY (1-7) for all 
transmission services offered on OASIS. A Transmission Provider that 
has adopted alternative curtailment procedures shall post its 
alternative attribute values and associated definitions on the OASIS 
Home Page at http://www.tsin.com, or shall use attribute values and 
definitions posted by another Transmission Provider. (See Section 3 
for registration requirements.)

Section 2.5  Other Service Attribute Values

    The Commission has defined six ancillary services in Order No. 
888. Other services may be offered pursuant to filed tariffs.

    Standard 2.5: A Transmission Provider shall use the definitions 
below to describe the AS_TYPEs offered on OASIS, or shall post 
alternative attribute values and associated definitions on the OASIS 
Home Page at http://www.tsin.com, or shall use attribute values and 
definitions posted by another Transmission Provider. (See Section 3 
for registration requirements.)

FERC Ancillary Services Definitions

    Standard 2.5.1: Scheduling, System Control and Dispatch Service 
(SC)--is necessary to the provision of basic transmission service 
within every control area. This service can be provided only by the 
operator of the control area in which the transmission facilities 
used are located. This is because the service is to schedule the 
movement of power through, out of, within, or into the control area. 
This service also includes the dispatch of generating resources to 
maintain generation/load balance and maintain security during the 
transaction and in accordance with section 3.1 (and Schedule 1) of 
the pro forma tariff.
    Standard 2.5.2: Reactive Supply and Voltage Control from 
Generation Sources Service (RV)--is the provision of reactive power 
and voltage control by generating facilities under the control of 
the control area operator. This service is necessary to the 
provision of basic transmission service within every control area 
and in accordance with section 3.2 (and Schedule 2) of the pro forma 
tariff.
    Standard 2.5.3: Regulation and Frequency Response Service (RF)--
is provided for transmission within or into the transmission 
provider's control area to serve load in the area. Customers may be 
able to satisfy the regulation service obligation by providing 
generation with automatic generation control capabilities to the 
control area in which the load resides and in accordance with 
section 3.3 (and Schedule 3) of the pro forma tariff.
    Standard 2.5.4: Energy Imbalance Service (I)--is the service for 
transmission within and into the transmission provider's control 
area to serve load in the area. Energy imbalance represents the 
deviation between the scheduled and actual delivery of energy to a 
load in the local control area over a single hour and in accordance 
with section 3.4 (and Schedule 4) of the pro forma tariff.
    Standard 2.5.5: Operating Reserve--Spinning Reserve Service 
(SP)--is provided by generating units that are on-line and loaded at 
less than maximum output. They are available to serve load 
immediately in an unexpected contingency, such as an unplanned 
outage of a generating unit and in accordance with section 3.5 (and 
Schedule 5) of the pro forma tariff.
    Standard 2.5.6: Operating Reserve--Supplemental Reserve Service 
(SU)--is generating capacity that can be used to respond to 
contingency situations. Supplemental reserve, is not available 
instantaneously, but rather within a short period (usually ten 
minutes). It is provided by generating units that are on-line but 
unloaded, by quick-start generation, and by customer interrupted

[[Page 65266]]

load and in accordance with section 3.6 (and Schedule 6) of the pro 
forma tariff.

Other Service Definitions

    Other services may be offered to Transmission Customers through 
Commission-approved revisions to their individual open access 
tariffs. Examples of other services that may be offered include the 
Interconnected Operations Services described below in Standards 
2.5.7, 2.5.8, and 2.5.9. Ancillary service definitions may be 
offered pursuant to an individual transmission provider's specific 
tariff filings.

    Standard 2.5.7: Dynamic Transfer (DT)--is the provision of the 
real-time monitoring, telemetering, computer software, hardware, 
communications, engineering, and administration required to 
electronically move all or a portion of the real energy services 
associated with a generator or load out of its Host Control Area 
into a different Electronic Control Area.
    Standard 2.5.8: Real Power Transmission Losses (TL)--is the 
provision of capacity and energy to replace energy losses associated 
with transmission service on the Transmission Provider's system.
    Standard 2.5.9: System Black Start Capability (BS)--is the 
provision of generating equipment that, following a system blackout, 
is able to start without an outside electrical supply. Furthermore, 
Black Start Capability is capable of being synchronized to the 
transmission system such that it can provide a startup supply source 
for other system capacity that can then be likewise synchronized to 
the transmission system to supply load as part of a process of re-
energizing the transmission system.

    Standard 2.6: A Transmission Provider shall use the definitions 
below to describe the scheduling period leading up to the start time 
of a transaction:
    Standard 2.6.1: Same-day is after 2 p.m. of the preceding day; 
and
    Standard 2.6.2: Next-hour is one hour or less prior to the 
service start time.

Section 3  OASIS Registration Procedures

Section 3.1  Entity Registration

    Operation of OASIS requires unambiguous identification of 
parties.

    Standard 3.1: All entities or persons using OASIS shall register 
the identity of their organization (including DUNS number) or person 
at the OASIS Home Page at http://www.tsin.com. Registration 
identification shall include the parent entity (if any) of the 
registrant. Registration shall be a prerequisite to OASIS usage and 
renewed annually and whenever changes in identification occur and 
thereafter. An entity or person not complying with this requirement 
may be denied access by a transmission provider to that transmission 
provider's OASIS node.

    The registration requirement applies to any entity logging onto 
OASIS for the purpose of using or updating information, including 
Transmission Providers, Transmission Customers, Observers, Control 
Areas, Security Coordinators, and Independent System Operators.

Section 3.2  Process To Register Non-Standard Service Attribute 
Values

    Section 2 of the OASIS business practice standards addresses the 
use of standard terminology in defining services on OASIS. These 
standard definitions for service attribute values will be posted 
publicly on the OASIS Home Page at http://www.tsin.com and may be 
used by all Transmission Providers to offer transmission and 
ancillary services on OASIS. If the Transmission Provider determines 
that the standard definitions are not applicable, the Transmission 
Provider may register new attribute values and definitions on the 
OASIS Home Page. Any Transmission Provider may use the attribute 
values and definitions posted by another Transmission Provider.

    Standard 3.2: Providers of transmission and ancillary services 
shall use only attribute values and definitions that have been 
registered on the OASIS Home Page at http://www.tsin.com for all 
transmission and ancillary services offered on their OASIS.
    Standard 3.3: Providers of transmission and ancillary services 
shall endeavor to use on their OASIS nodes attribute values and 
definitions that have been posted by other Transmission Providers on 
the OASIS Home Page at http://www.tsin.com whenever possible.
Section 3.3  Registration of Points of Receipt and Delivery

    In order to improve coordination of path naming and to enhance 
the identification of commercially available connection points 
between Transmission Providers and regions, the business practice 
for Phase IA OASIS requires that:

I. Transmission Providers register at the OASIS Home Page at http://www.tsin.com, all service points (Points of Receipt and Delivery) 
for which transmission service is available over the OASIS.
II. Each Transmission Provider would then indicate on its OASIS 
node, for each Path posted on its OASIS node, the Points of Receipt 
and Delivery to which each Path is connected.

    A Transmission Provider is not required to register specific 
generating stations as Points of Receipt, unless they were available 
as service points for the purposes of reserving transmission service 
on OASIS. The requirement also does not include registration of 
regional flowgates, unless they are service points for the purposes 
of reserving transmission on OASIS.

    Standard 3.4: A Transmission Provider shall register and 
thereafter maintain on the OASIS Home Page at http://www.tsin.com 
all Points of Receipt and Delivery to and from which a Transmission 
Customer may reserve and schedule transmission service.
    Standard 3.5: For each reservable Path posted on their OASIS 
nodes, Transmission Providers shall indicate the available Point(s) 
of Receipt and Delivery for that Path. These Points of Receipt and 
Delivery shall be from the list registered on the OASIS Home Page at 
http://www.tsin.com.
    Standard 3.6: When two or more Transmission Providers share 
common Points of Receipt or Delivery, or when a Path connects Points 
of Receipt and Delivery in neighboring systems, the Transmission 
Providers owning and/or operating those facilities shall apply 
consistent names for those connecting paths or common paths on the 
OASIS.

Section 4  On-Line Negotiation and Confirmation Process
Section 4.1  On-Line Price Negotiation in Short-Term Markets
Standard 4.1: Consistent with FERC policy and regulations, all 
reservations and price negotiations shall be conducted on OASIS.
Standard 4.2: Reserved.
Standard 4.3: Reserved.
Section 4.2  Phase IA Negotiation Process State Transition Diagram

    The Phase IA S&CP Document provides a process state diagram to 
define the Customer and Transmission Provider interactions for 
negotiating transmission service. This diagram defines allowable 
steps in the reservation request, negotiation, approval and 
confirmation.

Standard 4.4: The state diagram appearing in Exhibit 4-1 in Section 
4.2.10.2 of the Version 1.3 of the S&CP Document constitutes a 
recommended business practice in OASIS Phase IA.
Standard 4.5: The definitions in Section 4.2.10.2 of the Version 1.3 
of the S&CP Document (status values) shall be applied to the process 
states in OASIS Phase IA.
    Table 4-1--Reserved.
Section 4.3  Negotiations Without Competing Bids

    The following practices are defined in order to enhance 
consistency of the reservation process across OASIS Phase IA nodes.
Standard 4.6: A Transmission Provider/Seller shall respond to a 
Customer's service request, consistent with filed tariffs, within 
the Provider Response Time Limit defined in Table 4-2 Reservation 
Timing Requirements. The time limit is measured from the time the 
request is QUEUED. A Transmission Provider may respond by setting 
the state of the reservation request to one of the following:

I. INVALID
II. DECLINED
III. REFUSED
IV. COUNTEROFFER
V. ACCEPTED
VI. STUDY (when the tariff allows), leading to REFUSED, 
COUNTEROFFER, or ACCEPTED.

    Standard 4.7: Prior to setting a request to ACCEPTED, 
COUNTEROFFER, or REFUSED a Transmission Provider shall evaluate the 
appropriate resources and ascertain that the requested transfer 
capability is (or is not) available.
    Standard 4.8: For any request that is REFUSED or INVALID, the 
Transmission Provider must indicate in the SELLER_COMMENTS field the 
reason the request was refused or invalid.

[[Page 65267]]

    Standard 4.9: The Customer may change a request from QUEUED, 
RECEIVED, STUDY, COUNTEROFFER, REBID, or ACCEPTED to WITHDRAWN at 
any time prior to CONFIRMED.
    Standard 4.10: From ACCEPTED or COUNTEROFFER, a Customer may 
change the status to CONFIRMED or WITHDRAWN. In addition, a Customer 
may change the status from COUNTEROFFER to REBID. The Customer has 
the amount of time designated as Customer Confirmation Time Limit in 
Table 4-2 Reservation Timing Requirements to change the state of the 
request to CONFIRMED. The Customer time limit is measured from the 
first time the request is moved to ACCEPTED or COUNTEROFFER, and is 
not reset with subsequent iterations of negotiation.
    Standard 4.11: After expiration of the Customer Confirmation 
Time Limit, specified in Table 4-2 Reservation Timing Requirements, 
the Transmission Provider has a right to move the request to the 
RETRACTED state.
    Standard 4.12: Should the Customer elect to respond to a 
Transmission Provider's COUNTEROFFER by moving a reservation request 
to REBID, the Transmission Provider shall respond by taking the 
request to a DECLINED, ACCEPTED, or COUNTEROFFER state within the 
Provider Counter Time Limit, specified in Table 42 Reservation 
Timing Requirements. The Transmission Provider response time is 
measured from the most recent REBID time.
    Standard 4.13: The following timing requirements shall apply to 
all reservation requests:

                                                       Table 4-2.--Reservation Timing Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            Customer confirmation
                                                              Time QUEUED prior to    Provider evaluation    time limit \2\ after  Provider counter time
               Class                    Service increment             start              time limit \1\          ACCEPTED or       limit after REBID \4\
                                                                                                               COUNTEROFFER \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-firm...........................  Hourly................  1 hour................  Best effort..........  5 minutes............  5 minutes.
Non-firm...........................  Hourly................  >1 hour...............  30 minutes...........  5 minutes............  5 minutes.
Non-firm...........................  Hourly................  Day ahead.............  30 minutes...........  30 minutes...........  10 minutes.
Non-firm...........................  Daily.................  N/A...................  30 minutes...........  2 hours..............  10 minutes.
Non-firm...........................  Weekly................  N/A...................  4 hours..............  24 hours.............  4 hours.
Non-firm...........................  Monthly...............  N/A...................  2 days \5\...........  24 hours.............  4 hours.
Firm...............................  Daily.................  24 hours..............  Best effort..........  2 hours..............  30 minutes.
Firm...............................  Daily.................  N/A...................  30 days \6\..........  24 hours.............  4 hours.
Firm...............................  Weekly................  N/A...................  30 days \6\..........  48 hours.............  4 hours.
Firm...............................  Monthly...............  N/A...................  30 days \6\..........  4 days...............  4 hours.
Firm...............................  Yearly................  60 days \7\...........  30 days..............  15 days..............  4 hours.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Consistent with regulations and filed tariffs, measurement starts at the time the request is QUEUED.
\2\ Confirmation time limits are not to be interpreted to extend scheduling deadlines or to override preexemption deadlines.
\3\ Measurement starts at the time the request is first moved to either ACCEPTED or COUNTEROFFER. The time limit does not reset on subsequent changes of
  state.
\4\ Measurement starts at the time the Transmission Customer changes the state to REBID. The measurement resets each time the request is changed to
  REBID.
\5\ Days are defined as calendar days.
\6\ Subject to expedited time requirements of Section 17.1 of the pro forma tariff. Transmission Providers shall make best efforts to respond within 72
  hours, or prior to the scheduling deadline, whichever is earlier, to a request for Daily Firm Service received during period 2-30 days ahead of the
  service start time.
\7\ Subject to Section 17.1 of the pro forma tariff, whenever feasible and on a nondiscriminatory basis, transmission providers should accommodate
  requests made with less than 60 days notice.

Section 4.4  Negotiations With Competing Bids for Constrained 
Resources

    Competing bids exist when multiple requests cannot be 
accommodated due to a lack of available transmission capacity. One 
general rule is that OASIS requests should be evaluated and granted 
priority on a first-come-first-served basis established by OASIS 
QUEUED time. Thus, the first to request service should get it, all 
else being equal.
    Exceptions to this first-come-first-served basis occur when 
there are competing requests for limited resources and the requests 
have different priorities established by FERC regulations and filed 
tariffs. Prior to the introduction of price negotiations, the 
attribute values that have served as a basis for determining 
priority include:

I. Type (Network, Point-to-point)
II. Class (Firm, Non-Firm)
III. Increment (Hourly, Daily, Weekly, Monthly, Yearly)
IV. Duration (the amount of time between the Start Date and the Stop 
Date)
V. Amount (the MW amount)

    Under a negotiation model, price can also be used as an 
attribute for determining priority. The negotiation process 
increases the possibility that a Transmission Provider will be 
evaluating multiple requests that cannot all be accommodated due to 
limited resources. In this scenario, it is possible that an 
unconfirmed request with an earlier QUEUED time could be preempted 
(SUPERSEDED). For this to occur, the subsequent request would be of 
higher priority or of greater price.

    Standard 4.14: Consistent with regulations and filed tariffs, 
the following are recommended relative priorities of Service Request 
Tiers.\10\ Specific exceptions may exist in accordance with filed 
tariffs. The priorities refer only to negotiation of service and do 
not refer to curtailment priority.

4.14.1.  Service Request Tier 1: Native load, Network, or Long-term 
Firm
4.14.2.  Service Request Tier 2: Short-term Firm
4.14.3.  Service Request Tier 3: Network Service From Non-designated 
Resources
4.14.4.  Service Request Tier 4: Non-firm
4.14.5.   Service Request Tier 5: Non-firm Point-to-point Service 
over secondary receipt and delivery points
4.14.6  Service Request Tier 6: Non-firm Next Hour Market Service

    Standard 4.15: Consistent with regulations and filed tariffs, 
reservation requests shall be handled in a first-come-first-served 
order based on QUEUE_TIME.
    Standard 4.16: Consistent with regulations and filed tariffs, 
Table 4-3 describes the relative priorities of competing service 
requests and rules for offering right-of-first-refusal. While the 
table indicates the relative priorities of two competing requests, 
it also is intended to be applied in the more general case of more 
than two competing requests.

[[Page 65268]]



        Table 4-3.--Priorities for Competing Reservation Requests
------------------------------------------------------------------------
                                 Is preempted by       Right of first
 Row         Request 1              Request 2              refusal
------------------------------------------------------------------------
1....  Tier 1: Long-term      N/A--Not preempted    N/A.
        Firm, Native Load,     by a subsequent
        and Network Firm.      request.
2....  Tier 2: Short-term     Tier 1: Long-term     No.
        Firm.                  Firm, Native Load,
                               and Network Firm,
                               while Request 1 is
                               conditional. Once
                               Request 1 is
                               unconditional, it
                               may not be
                               preempted..
3....  Tier 2: Short-term     Tier 2: Short-term    Yes, while Request 1
        Firm.                  Firm of longer term   is conditional.
                               (duration), while     Once Request 1 is
                               Request 1             unconditional, it
                               conditional. Once     may not be
                               Request 1 is          preempted and right
                               unconditional, it     of first refusal is
                               may not be            not applicable.
                               preempted \1\.
4....  Tier 3: Network        Tiers 1 and 2: All    No.
        Service From Non-      Firm (including
        Designated Resources.  Network)..
5....  Tier 4: All Non-Firm   Tiers 1 and 2: All    No.
        PTP.                   Firm (including
                               Network).
6....  Tier 4: All Non-Firm   Tier 3: Network       No.
        PTP.                   Service from Non-
                               Designated
                               Resources.
7....  Tier 4: All Non-Firm   Tier 4: Non-firm PTP  Yes.\2\
        PTP.                   of a longer term
                               (duration). \1\
                               Except in the last
                               hour prior to start
                               (See Standard 4.23).
8....  Tier 4: All Non-Firm   Tier 4: Non-firm PTP  Yes. \3\
        PTP.                   of equal term
                               (duration) \1\ and
                               higher price, when
                               Request 1 is still
                               unconfirmed and
                               Request 2 is
                               received pre-
                               confirmed. A
                               confirmed non-firm
                               PTP may not be
                               preempted for
                               another non-firm
                               request of equal
                               duration. (See
                               Standards 4.22 and
                               4.25.).
9....  Tier 5: Non-firm PTP   Tier 5 can be         No.
        Service over           preempted by Tiers
        secondary receipt      1 through 4.
        and delivery points.
10...  Tier 6: Non-firm Next  Tier 6 can be         No.
        Hour Market Service.   preempted by Tiers
                               1 through 5.
------------------------------------------------------------------------
Note: The term Tier is introduced to avoid confusion with existing terms
  such as TS_CLASS.
\1\ Longer duration, in addition to being higher SERVICE_INCREMENT
  (i.e., WEEKLY has priority over DAILY), also may mean more multiples
  of the same SERVICE_INCREMENT (i.e., 3 days may have priority over 2
  days). Multiple service increments must be at the same level of
  capacity.
\2\ Right of first refusal when a subsequent request is received of a
  longer duration applies only if the first request is confirmed.
\3\ Right of first refusal when a subsequent request is received of an
  equal duration and higher price applies only when the first request is
  unconfirmed and the subsequent request is received preconfirmed (see
  Standards 4.22 and 4.26).

    Standard 4.17: For a request or reservation that is Superseded 
or Displaced, the Transmission Provider must indicate the Assignment 
Reference Number of the competing request and the reason for denial 
of service in the SELLER_COMMENTS field.
    Standard 4.18: Given competing requests for a limited resource 
and a right-of-first-refusal is not required to be offered, the 
Transmission Provider may immediately move requests in the CONFIRMED 
state to DISPLACED, or from an ACCEPTED or COUNTEROFFER state to 
SUPERSEDED, if the competing request is of higher priority, based on 
the rules represented in Table 4-3. These state changes require 
dynamic notification to the Customer if the Customer has requested 
dynamic notification on OASIS.
    Standard 4.19: In those cases where right-of-first-refusal is 
required to be offered, the Transmission Provider shall notify the 
Customer, through the use of a COUNTEROFFER, of the opportunity to 
match the subsequent offer.
    Standard 4.20: A Customer who has been extended a right-of-
first-refusal shall have a confirmation time limit equal to the 
lesser of (a) the Customer Confirmation Time Limit in Table 4-2 or 
(b) 24 hours.
    Standard 4.21: A Transmission Provider shall apply all rights-
of-first-refusal in a nondiscriminatory and open manner for all 
Customers.
    Standard 4.22: Once a non-firm PTP request has been confirmed, 
it shall not be displaced by a subsequent non-firm PTP request of 
equal duration and higher price.
    Standard 4.23: A confirmed, non-firm PTP reservation for the 
next hour shall not be displaced within one hour of the start of the 
reservation by a subsequent non-firm PTP reservation request of 
longer duration.
    Standard 4.24: A Transmission Provider shall accept any 
reservation request submitted for an unconstrained Path if the 
Customer's bid price is equal to or greater than the Transmission 
Provider's posted offer price at the time the request was queued, 
even if later requests are submitted at a higher price. This 
standard applies even when the first request is still unconfirmed, 
unless the Customer Confirmation Time Limit has expired for the 
first request.
    Standard 4.25: Once an offer to provide non-firm PTP 
transmission service at a given price is extended to a Customer by 
the Transmission Provider, and while this first request is still 
unconfirmed but within the Customer Confirmation Time Limit, the 
Transmission Provider shall not preempt or otherwise alter the 
status of that first request on receipt of a subsequent request of 
the same Tier and equal duration at a higher price, unless the 
subsequent request is submitted as pre-confirmed.
    Standard 4.26: If during a negotiation of service (i.e., prior 
to Customer confirmation) a subsequent pre-confirmed request for 
service over the same limited resource of equal duration but higher 
price is received, the Transmission Provider must COUNTEROFFER the 
price of service on the prior COUNTEROFFER or ACCEPTED price to 
match the competing offer, in order to give the first Customer an 
opportunity to match the offer. This practice must be implemented in 
a non-discriminatory manner.
    Standard 4.27: Whenever a request or reservation is set to the 
state of Invalid, Refused, Declined, Superseded, Retracted, 
Annulled, or Displaced, the Transmission Provider or Seller shall 
enter the reason for the action in the SELLER_COMMENTS field.

Section 5  Procurement of Ancillary and Other Services
Section 5.1  Introduction

    Phase IA OASIS data templates allow the coupling of ancillary 
service arrangements with the purchase of transmission service for 
the purpose of simplifying the overall process for Customers. 
Transmission

[[Page 65269]]

Providers must indicate (consistent with filed tariffs), which 
services are MANDATORY (must be taken from the Primary Transmission 
Provider), REQUIRED (must be provided for but may be procured from 
alternative sources), or OPTIONAL (not required as a condition of 
transmission service).
    The Transmission Customer should make known to the Transmission 
Provider at the time of the reservation request certain options 
related to arrangement of ancillary services. The Transmission 
Customer may indicate:

    a. I will take all the MANDATORY and REQUIRED ancillary services 
from the Primary Transmission Provider
    b. I will take REQUIRED ancillary services from Third Party 
Seller X
    c. I would like to purchase OPTIONAL services
    d. I will self provide ancillary services
    e. I will arrange for ancillary services in the future (prior to 
scheduling)

    While these interactions are available in the Phase IA S&CP 
Document, there is a need to clarify the associated business 
practices. The standards in
Section 5 apply to services defined in filed tariffs.

    Section 5.2  Transmission Provider Requirements
    Standard 5.1: The Transmission Provider shall designate which 
ancillary services are MANDATORY, REQUIRED, or OPTIONAL for each 
offered transmission service or each transmission path to the extent 
these requirements can be determined in advance of the submittal of 
a reservation request on a specific Path by a Transmission Customer.
    Standard 5.2: A Transmission Provider shall modify a 
Transmission Customer's service request to indicate the Transmission 
Provider as the SELLER of any ancillary service, which is MANDATORY, 
to be taken from the Transmission Provider.
    Standard 5.3: For REQUIRED and OPTIONAL services, the 
Transmission Provider shall not select a SELLER of ancillary service 
without the Transmission Customer first selecting that SELLER.
    Standard 5.4: A Transmission Provider may accept a Transmission 
Customer's request for an ancillary service, which is not MANDATORY 
or REQUIRED, but shall indicate to the Transmission Customer at the 
time of acceptance in SELLER__COMMENTS that the service is not 
MANDATORY or REQUIRED.
    Section 5.3  Transmission Customer Requirements
    Standard 5.5: The Transmission Customer shall indicate with the 
submittal of a transmission reservation request, the preferred 
options for provision of ancillary services, such as the desire to 
use an alternative resource. The Transmission Provider shall post 
itself as the default ancillary service provider, if a Transmission 
Customer fails to indicate a third party SELLER of ancillary 
services. However, the Transmission Customer may change this 
designation at a later date, so long as this change is made prior to 
the Transmission Provider's scheduling deadline.
    Standard 5.6: A Transmission Customer may, but is not required 
to, indicate a third party SELLER of ancillary services, if these 
services are arranged by the Transmission Customer off the OASIS and 
if such arrangements are permitted by the Transmission Provider's 
tariff. The Transmission Provider shall post itself as the default 
ancillary service provider, if a Transmission Customer fails to 
indicate a third party SELLER of ancillary services. However, the 
Transmission Customer may change this designation at a later date, 
so long as this change is made prior to the Transmission Provider's 
scheduling deadline.

Section 6  Pathnaming Standards
Section 6.1  Introduction

    The Data Element Dictionary of the OASIS S&CP Document, Version 
1.3, defines a path name in terms of a 50-character alphanumeric 
string:

RR/TPTP/PATHPATHPATH/OPTIONALFROM-OPTIONALTOTO/SPR
RegionCode/TransmissionProviderCode/PathName/OptionalFrom-To(POR-
POD)/Spare

    This definition leaves it to the Transmission Providers to name 
the paths from their own perspective. The following standards 
provide an unambiguous convention for naming paths and will produce 
more consistent path names.

Section 6.2  Transmission Provider Requirements
    Standard 6.1: A transmission provider shall use the path naming 
convention defined in the S&CP Data Dictionary for the naming of all 
reservable paths posted on OASIS.
    Standard 6.2: A transmission provider shall use the third field 
in the path name to indicate the sending and receiving control 
areas. The control areas shall be designated using standard NERC 
codes for the control areas, separated by a hyphen. For example, the 
first three fields of the path name will be:

RR/TPTP/CAXX-CAYY/

    Standard 6.3: A transmission provider shall use the fourth field 
of the path name to indicate POR and POD separated by a hyphen. For 
example, a path with a specific POR/POD would be shown as:

RR/TPTP/CAXX-CAYY/PORPORPORPOR-PODPODPODPOD/

    If the POR and POD are designated as control areas, then the 
fourth field may be left blank (as per the example in 6.2).

    Standard 6.4: A transmission provider may designate a sub-level 
for Points of Receipt and Delivery. For example, a customer reserves 
a path to POD AAAA. The ultimate load may be indeterminate at the 
time. Later, the customer schedules energy to flow to a particular 
load that may be designated by the transmission provider as a sub-
level Point of Delivery. This option is necessary to ensure certain 
transmission providers are not precluded from using more specific 
service points by the inclusion of the POR/POD in the path name. All 
sub-level PORs and PODs must be registered as such on http://www.tsin.com.

Section 7  Next Hour Market Service
Section 7.1  Introduction

    The standards in this section apply to the offering of Next Hour 
Market (NHM) Service only. The Commission has designated this 
service as voluntary for a transmission provider to offer. Therefore 
the standards apply to a transmission provider only if that provider 
offers NHM Service, in which case the standards become mandatory for 
that provider.

    Section 7.2  Transmission Provider Requirements
    Standard 7.1: Use of NHM Service shall be limited to interchange 
transactions having a duration of one clock-hour and requested no 
earlier than 60 minutes prior to the start time of the transaction.
    Standard 7.2: A transmission provider offering NHM Service shall 
allow an eligible transmission customer to request a NHM Service 
reservation electronically using protocols compliant with the NERC 
ETAG Specification 1.6.
    Standard 7.3: A transmission provider offering NHM Service shall 
allow a transmission customer to request NHM Service for one or more 
path segments of a tag by designating: (a) 0-NX as the transmission 
product code under the OASIS block and (b) BUYATMARKET as the OASIS 
reservation identifier.
    Standard 7.4: A transmission provider offering NHM Service shall 
consider the submittal of a tag designating that provider on one or 
more path segments using NHM Service to include a pre-confirmed 
request for the necessary transmission reservation and associated 
mandatory ancillary services for each designated path segment, for 
the hour indicated. No additional confirmation steps shall be 
required by the transmission customer for a NHM Service transmission 
reservation and associated ancillary services.
    Standard 7.5: A transmission provider offering NHM Service shall 
consider set the amount of the NHM Service reservation as:

a. The amount of the Transmission Provider Product, if specified.
b. In accordance with the Transmission Provider's tariff, the MW 
amount at the POR or POD for that Provider in the Loss Table, if 
Transmission Provider Product is not specified.

c. The MW amount in the Energy Profile, if neither Transmission 
Provider Product amount nor Provider Loss Table amounts are 
specified.

    Standard 7.6: The OASIS queue time of a NHM Service request or 
reservation shall be the transmission provider ETAG approval service 
receipt time, unless a system failure requires the use of ETAG 
backup procedures, in which case the OASIS queue time shall be the 
time the

[[Page 65270]]

tag is received by the transmission provider.
    Standard 7.7: The 0-NX designation in the tag assigns as 
transmission customer, for all NHM Service path segments in the 
transaction, the PSE that is designated as the Purchasing-Selling 
Entity (PSE) responsible for the tag. A PSE submitting a tag may not 
designate a NHM Service reservation for another PSE and a 
transmission provider may not assign a reservation to any 
transmission customer other than the PSE submitting the NHM Service 
tag.
    Standard 7.8: When evaluating competing requests for 
transmission reservations, a transmission provider offering NHM 
Service shall consider the NHM Service to have a priority lower than 
Tier 5--point-to-point service over secondary receipt and delivery 
points.
    Standard 7.9: Once a tag goes to IMPLEMENT or CONDITIONAL status 
in ETAG, the transmission provider shall consider the associated NHM 
Service reservations to be confirmed. Since the NHM Service 
confirmed reservation(s) are by definition less than one hour prior 
to start, these reservations shall not be displaced by a subsequent 
non-firm reservation of higher priority.
    Standard 7.10: The transmission customer shall be obligated to 
pay for the transmission service under the terms of the tariff at 
the posted offer price for non-firm hourly service, once the 
interchange transaction tag is changed to the IMPLEMENT or 
CONDITIONAL status in ETAG. In the event of a voluntary withdrawal 
or reduction in the amount or duration of the service by the 
transmission customer after the tag has changed to IMPLEMENT or 
CONDITIONAL, the transmission customer shall remain obligated to pay 
for the full amount of the approved request. In the event of an 
involuntary curtailment or reduction of the service, initiated by 
the transmission provider or any other transmission provider, the 
transmission customer shall not be obligated to pay for any portions 
of the NHM Service that were involuntarily curtailed. In the case of 
involuntary curtailment or reduction, payment shall be based on a 
calculation of the MWhours actually used.
    Standard 7.11: In the case that a transaction uses NHM Service 
for all required path segments in the tag, the default condition of 
the tag is NOT approved unless all required transmission providers 
and control areas indicate tag approval.
    Standard 7.12: In the case that a transaction mixes one or more 
transaction path segments that use NHM Service with one or more path 
segments that use other types of transmission service, then: (1) As 
long as the NHM Service path segment(s) are not fully approved, then 
the tag shall default to NOT approved; and (2) if all NHM Service 
path segments in the ETAG are fully approved, then the tag shall 
revert to the normal default status as specified in NERC Operating 
Policy 3 and associated Appendices.
    Standard 7.13: The transmission customer shall be required to 
submit a NHM Service transaction request prior to the tag submittal 
time limit as specified in NERC Operating Policy 3 and associated 
Appendices, and no earlier than 60 minutes prior to the start of the 
transaction.
    Standard 7.14: The approval mechanism for a NHM Service 
reservation shall be the tag approval. If the tag is approved and 
moved to the IMPLEMENT or CONDITIONAL state, all required NHM 
Service transmission reservations associated with that tag shall be 
considered confirmed reservations. If one or more transmission 
providers do NOT approve their segment(s) of the transaction, then 
the transaction shall be considered NOT approved. Each transmission 
provider designated in a tag that does not approve that segment of 
the tag shall indicate that the associated reservation for that 
segment is REFUSED. If a designated transmission provider in a NHM 
Service path segment approves the tag but the tag is not approved 
through the action or inaction of another transmission provider, 
then that transmission provider shall indicate that reservation is 
ANNULLED.
    Standard 7.15: The transmission provider shall assign the 
reservation request and final disposition status on behalf of the 
transmission customer within one hour of the requested start of the 
NHM Service transaction, regardless of the ultimate disposition of 
the tag.
    Standard 7.16: NHM Service shall have the lowest curtailment 
priority in the event that a curtailment or reduction of transfers 
is initiated. Specifically, NHM Service (0-NX) shall have a NERC 
Curtailment Priority of 0.

[FR Doc. 00-27993 Filed 10-31-00; 8:45 am]
BILLING CODE 6717-01-P


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