Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 521

or suspended provisions which are reflected

in other provisions of this Agreement will

also be terminated or suspended.

15.5 Termination or suspension of

specific provisions of this Agreement

pursuant to this Section 17 shall be without

penalty to either of the Parties, except that

the rights of the Parties, if any, which

accrued prior to the date of such termination

or suspension shall be and hereby are

preserved.

16 Limitation on Rights of Entry: The

Transmission Provider reserves the right,

upon notice to the Transmission Customer, to

revoke or cancel the rights of entry granted

under this Agreement with regard to any

particular representative of the Transmission

Customer, if, in the sole judgment of the

Transmission Provider, such revocation or

cancellation is required in the interest of

national security.

17 Assistance by Contracting Parties: If

assistance in maintenance and utilization of

their respective systems is rendered by the

Transmission Provider and/or the

Transmission Customer, the following terms

and conditions shall apply:

17.1 If, in the maintenance or utilization

of their respective transmission systems and

related facilities for the purpose of this

Agreement, it becomes necessary by reason of

any emergency or extraordinary condition for

the Transmission Provider or the

Transmission Customer to request the other

to furnish personnel, materials, tools, and

equipment for the maintenance or

modification of, or other work on, such

transmission systems and related facilities to

insure continuity of power and energy

deliveries, the Party requested shall

cooperate with the other and render such

assistance as the Party requested may

determine to be available.

17.2 The Party making such request,

upon receipt of properly itemized bills, shall

reimburse the Party rendering such

assistance, including overhead and

administrative and general expenses. The

Transmission Customer and the

Transmission Provider agree to account for

any incurred costs under a Work Order

accounting procedure and in accordance

with the Uniform System of Accounts

prescribed for public utilities by the

Commission.

17.3 Billing statements rendered by the

Transmission Customer and the

Transmission Provider for such

reimbursement shall be due 20 days from the

date thereof.

Attachment G

Network Operating Agreement

To be provided by the Transmission

Provider at such time as the Transmission

Provider has negotiated or offered a Network

Integration Transmission Service Agreement.

The terms and conditions under which the

Network Customer will be required to

operate its facilities and the technical and

operational matters associated with the

implementation of Network Integration

Transmission Service will be specified in a

separate Network Operating Agreement and

appended to the applicable Service

Agreement.

The Network Operating Agreement may

include, but is not limited to, provisions

addressing the following matters:

Authorized Representatives of the Parties

Network Operating Committee

Load Following

System Protection

Redispatch to Manage Transmission

Constraints

Maintenance of Facilities

Load Shedding

Operation Impacts

Service Conditions

Data, Information and Reports

Metering

Communications

System Regulation and Operating Reserves

Assignment

Notices

Accounting for Transmission Losses

Ancillary Services

Penalties for Unauthorized Use of

Transmission Provider’s System

Attachment H

Annual Transmission Revenue Requirement

For Network Integration Transmission

Service

1.0 The Annual Transmission Revenue

Requirement for purposes of the Network

Integration Transmission Service is set forth

in the Transmission Provider’s rate schedule

for transmission services.

Attachment I

Index of Network Integration Transmission

Service Customers

Customer Date of Service Agreement.

Transmission Provider has no Network

Customers at this time.

[FR Doc. 98–132 Filed 1–5–98; 8:45 am]

BILLING CODE 6450–01–P

DEPARTMENT OF ENERGY

Western Area Power Administration

Open Access Transmission Service

Tariff

AGENCY: Western Area Power

Administration, DOE.

ACTION: Notice of final Tariff.

SUMMARY: The Western Area Power

Administration (Western) is adopting

this final Open Access Transmission

Service Tariff (Tariff) in order to be

consistent with the Federal Energy

Regulatory Commission (FERC) Order

Nos. 888 and 888–A to the extent

consistent with laws applicable to

Western’s activities.

DATES: The Tariff will become effective

February 5, 1998. The Tariff will remain

in effect until superseded.

FOR FURTHER INFORMATION CONTACT:

Mr. Robert J. Harris, Power Marketing

Manager, Upper Great Plains Region,

Western Area Power Administration,

P.O. Box 35800, Billings, MT 59107–

5800; (406) 247–7394

Mr. Dave Sabo, CRSP Manager, CRSP

Customer Service Center, Western

Area Power Administration, P.O. Box

11606, Salt Lake City, UT 84147–

0606; (801) 524–5493

Mr. Anthony H. Montoya, Power

Marketing Manager, Desert Southwest

Region, Western Area Power

Administration, P.O. Box 6457,

Phoenix, AZ 85005–6457; (602) 352–

2789

Mr. James D. Keselburg, Power

Marketing Manager, Rocky Mountain

Region, Western Area Power

Administration, P.O. Box 3700,

Loveland, CO 80539–3003; (970) 490–

7370

Ms. Zola Jackson, Power Marketing

Manager, Sierra Nevada Region,

Western Area Power Administration,

114 Parkshore Drive, Folsom, CA

95630–4710; (916) 353–4421

Mr. Robert Fullerton, Corporate

Communications Office, Western Area

Power Administration, Post Office

Box 3402, Golden, CO 80401–0098;

(303) 275–2700.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Procedures

II. Background

III. Comments Raised During the

Development of this Final Tariff

IV. Summary of Significant Changes from

Western’s Proposed Tariff

V. Coordination with Adoption of Open

Access Transmission Rates

VI. Regulatory Requirements

I. Procedures

Western will submit the final Tariff to

FERC under a non-jurisdictional docket

and will request a declaratory order that

the Tariff meets FERC comparability

standards as set forth in FERC Order

Nos. 888 and 888–A. Western will make

the necessary changes in response to the

FERC declaratory order and will publish

the revised final Tariff in the Federal

Register.

II. Background

Use of transmission facilities that

Western owns, operates, or to which it

has contract rights for delivery of

Federal long-term firm capacity and

energy to project use and electric service

customers is a Western responsibility

under the terms and conditions of

marketing criteria and electric service

contracts implementing statutory

obligations to market Federal power.

This is complementary with the

provisions of the Tariff. Transmission

service provided by Western under the

Tariff is solely for the use of available

transmission capability in excess of the
522 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

amount Western requires for the

delivery of long-term firm capacity and

energy to project use and electric service

customers of the Federal government.

Western will offer to provide others

transmission service equivalent to the

service Western provides itself.

Western was established on December

21, 1977, pursuant to Section 302 of the

Department of Energy (DOE)

Organization Act, Public Law 95–91,

dated August 4, 1977. Western’s

primary and long-standing mission is to

market Federal power resources with

emphasis on maintaining an efficient

and reliable power system. Western is a

power supplier that markets and

transmits Federal power resources in 15

Central and Western States

encompassing a geographic area of 3.38

million-square-kilometers (1.3 millionsquare-miles). Western has four

Customer Service Regional Offices and

the Colorado River Storage Project

Customer Service Center (CRSP CSC),

each referred to in the Tariff as a

Regional Office. Western markets power

and provides transmission service from

various multi-purpose hydroelectric

projects.

Western is not a public utility under

Sections 205 and 206 of the Federal

Power Act and is not specifically subject

to the requirements of the FERC Order

Nos. 888 and 888–A. Western is a

transmitting utility subject to Section

211 of the Federal Power Act as

amended by the Energy Policy Act of

1992.

FERC issued a Notice of Proposed

Rulemaking (NOPR) for Open Access

Transmission Service, published at 60

FR 17662, on April 7, 1995. On October

4, 1995, the Secretary of DOE adopted

a Power Marketing Administration

Open Access Transmission Policy

which stated that DOE supported the

spirit and intent of the NOPR. The

Secretary of DOE stated that the Power

Marketing Administrations would

comply with the principles set forth in

the FERC’s final rule to the extent

consistent with applicable law. FERC

issued its final rule, Order No. 888,

published at 61 FR 21540 on May 10,

1996, and followed with Order No. 888–

A, published at 62 FR 12273, on March

14, 1997.

In early 1996, Western began

developing a Tariff Equivalent Package

(TEP) to comply with the Secretary’s

directive. A draft TEP, which was

designed as a Western-wide document

that would contain Region-specific rates

and charges, was completed in July

1996 and sent to Western’s electric

service customers, transmission-service

customers, and other interested parties

for review and comment. Western

accepted comments on the TEP through

November 1996.

After evaluating comments, Western

modified its original concept of

preparing a Western-wide TEP and

began developing Regional Open Access

Transmission Service Guidelines

(Regional Guidelines). These Regional

Guidelines contained service

agreements consistent with the specific

conditions applicable to each Region.

The resulting documents were sent to

electric service customers, transmission

customers, and other interested parties

for review and comment in April 1997.

The review period for those documents

ended in early June 1997. Customer and

interested party participation was

conducted informally.

Western began its formal process of

developing this Tariff when it issued a

Notice of Proposed Tariff published at

62 FR 50572 on September 26, 1997. A

formal comment period lasted for 31

days. On October 7, 1997, Western held

a combined public information and

public comment forum. The comments

received during the comment period

were considered in developing this final

Tariff.

Western will submit the Tariff

document to FERC under a nonjurisdictional docket and request a

declaratory order from FERC that this

Tariff meets the FERC comparability

standards as set forth in FERC Order

Nos. 888 and 888–A. Consistent with a

single FERC filing, Western has

developed and will file this Tariff with

appended schedules and attachments.

Western’s Tariff includes Attachment J,

Provisions Specific to the Transmission

Provider, and Attachment K, Authorities

and Obligations, which are specific to

Western and are not found in FERC’s

pro forma tariff.

By law, the Bureau of Reclamation

(Reclamation) provides Federal power

resources to its project use customers.

By law, Western markets Federal power

resources to its electric service

customers. Western’s transmission

system was built primarily to enable the

delivery of Federal power to satisfy

these contractual obligations. Western’s

Regional Offices reserved transmission

capacity shall, therefore, include

capacity sufficient to deliver Federal

power resources to customers of the

Federal government. Nothing in this

Tariff shall alter, amend, or abridge the

statutory or contractual obligations of

Western to market and deliver Federal

power resources and to repay the

Federal investment in such projects.

This Tariff provides for transmission,

including each Regional Office’s use of

those facilities for third party sales, on

the unused capacity of transmission

facilities under the jurisdiction or

control of each of Western’s Regional

Offices not required for the delivery of

long-term firm capacity and energy to

customers of the Federal government in

a manner consistent with the spirit and

intent of FERC Order Nos. 888 and 888–

A.

Western has prepared this Tariff and

service agreements to provide

transmission service comparable to that

required of public utilities by FERC

Order Nos. 888 and 888-A, and to

implement those Orders consistent with

the DOE Policy. An entity desiring

transmission service from Western must

comply with the application procedures

outlined herein. The review and

approval requirements detailed herein

will apply to all requesting parties.

Western will perform the necessary

studies or assessments for evaluating

requests for transmission service as set

forth in this Tariff. Any facility

construction or interconnection

necessary to provide transmission

service will be subject to Western’s

General Requirements for

Interconnection which are available

upon request.

Western will provide Firm and NonFirm Point-to-Point Transmission

Service and Network Integration

Transmission Service consistent with

the Tariff. The specific terms and

conditions for providing transmission

service specific to a particular customer

will be included in a Service

Agreement. Operating Procedures,

Available Transmission Capability

(ATC), and System Impact Methodology

are defined in the Attachments.

Western’s Regional Offices develop rates

under separate public process pursuant

to applicable Federal law and

regulations. Therefore, rates and charges

for specific services will be set forth in

the appropriate Regional rates schedules

attached to each Service Agreement.

Western has marketed the maximum

practical amount of power from each of

its projects, leaving little or no

flexibility for provision of additional

electric services from the projects.

Changes in water conditions frequently

affect the ability of hydroelectric

projects to meet obligations on a shortterm basis. The unique characteristics of

the hydro resource, Western’s marketing

plans, and the limitations of the

resource due to changing water

conditions limit Western’s ability to

provide generation-related services

including ancillary services and

redispatching, using Federal hydro

resources.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 523

III. Comments Raised During the

Development of this Final Tariff

Participants in the formal review

process raised numerous comments

about the proposed tariff. The following

highlights the more significant

comments and Western’s responses.

Comment: A commentor stated that

the ‘‘Annual Transmission Costs’’

definition (Section 1.2) does not appear

to include the costs of the power

produced at Reclamation’s hydroelectric

power facilities. The transmission rates

do, however, indicate the need for

ancillary generation service support.

The definition should then also include

costs associated with Reclamation’s

support of Ancillary Services.

Response: It is correct that the

definition for ‘‘Annual Transmission

Costs’’ does not include the costs of the

power produced at the hydroelectric

facilities. FERC Order Nos. 888 and

888–A provide that only transmission

costs may be included in the definition

of ‘‘Annual Transmission Costs.’’

Comment: A commentor asked if, in

Section 1.2, it is correct that the Annual

Transmission Costs can be modified by

the FERC.

Response: FERC decisions may affect

what facility costs will be included in

Western’s Annual Transmission Costs.

Comment: A commentor asked why

Western deleted the reference to FERC’s

approval in Section 1.10.

Response: Western is not a public

utility and, therefore, is not subject to

FERC’s jurisdiction under Sections 205

and 206 of the Federal Power Act.

Western is not, therefore, required to

submit Service Agreements to FERC for

approval.

Comment: A commentor stated that,

Western, as a Transmission Provider,

does not have retail customers, and,

therefore, the word ‘‘retail’’ should be

deleted from Section 1.19.

Response: Inclusion of this language

does not establish the type of customer

Western serves. This change is not

necessary.

Comment: A commentor asked if the

definition of ‘‘Transmission Provider’’

in Section 1.46 includes the CRSP CSC

in the context of the Regional Office

reference.

Response: The definition of

‘‘Transmission Provider’’ does include

the CRSP CSC in the context of the

Regional Office reference. As specified

in Attachment K, the CRSP CSC is a

Transmission Provider as are Western’s

other Regional Offices.

Comment: A commentor requested

clarification on whether Section 2.1

indicates that existing project use loads

will be included in the initial allocation

of available transmission capacity

calculations.

Response: Section 2.1 addresses

applications for transmission service

received during the first 60 days

commencing with the effective date of

the Tariff. Section 2.1 does not address

existing commitments for transmission.

However, in response to the comment,

existing project use loads are

components in the Regional Office’s

calculations of ATC.

Comment: Several commentors

requested that Western delete ‘‘to the

extent possible’’ in the second

paragraph of Section 3.0, and delete the

requirement for a separate agreement to

purchase Ancillary Services on behalf of

the transmission customer.

Response: Western agrees and has

modified Section 3.0.

Comment: A commentor suggested

that, in Section 3.0, Western should

insert the word ‘‘uncommitted’’ before

the word ‘‘surplus.’’

Response: Western has removed the

referenced sentence.

Comment: A commentor suggested

that in Section 3.0 after the phrase,

‘‘Services it will purchase from the

Transmission Provider’’ that Western

insert this sentence: ‘‘Ancillary Services

are included as part of Federal customer

transmission service.’’

Response: This section applies only to

transmission service provided under the

Tariff and does not refer to existing

transmission commitments of Western.

Comment: A commentor suggested

that within the title of Section 5.1,

replace the words ‘‘Local Furnishing’’

with the words ‘‘Tax Exempt’’ so that

the subtitle reads ‘‘Transmission

Providers That Own Facilities Financed

by Tax Exempt Bonds’’ and make this

change throughout the section. The

commentor also suggested that in

Section 5.2(i), Western delete the words

‘‘local furnishing.’’

Response: This issue was raised in

comments to FERC as it developed its

pro forma tariff. The result is the

language in Section 5.0 of the pro forma

tariff, which Western has adopted.

Comment: A commentor stated that

the proposed Tariff does not comply

with FERC Order Nos. 888 and 888–A.

Western’s Tariff does not recognize an

exception to comparability and

reciprocal service if each or both would

jeopardize a public power utility’s tax

exempt financing. Another commentor

stated that there has not been a genuine

and good faith effort to include the

specific treatment and special

requirements of the non-jurisdictional/

non-public utilities that are expressly

recognized and available under FERC

Order Nos. 888 and 888–A.

Response: Western has complied with

FERC Order No. 888–A by adopting the

pro forma language insofar as Western

can and still comply with Federal law.

Nothing in Western’s Tariff abrogates

any specific treatment and special

requirements of the non-jurisdictional/

non-public utilities that are expressly

recognized and available under FERC

Order Nos. 888 and 888–A. Non-public

utilities seeking relief from this and

other provisions should seek a waiver of

reciprocity from FERC pursuant to 18

CFR 35.28(e).

Comment: A commentor asked how

the cost of System Impact Studies

conducted on behalf of Western or its

Federal customers will be shared

between Federal customers and

customers served under the Tariff.

Response: Western will assign System

Impact Study costs for Western’s benefit

in accordance with Section 8.0 of the

Tariff.

Comment: A few comments were

made that, in Section 10.1, the last part

of the added sentence states, ‘‘* * *

and shall exercise due diligence to

remove such inability with all

reasonable dispatch.’’ This language

appears to either duplicate or modify

the ‘‘all reasonable efforts’’ language in

the previous sentence. In either case, it

should be removed.

Response: Western agrees and has

deleted the added sentence in Section

10.1.

Comment: A commentor stated that

Western should add the following

language to Section 12.1, ‘‘In the event

the designated representatives are

unable to resolve the dispute within 45

days (or such other period as the Parties

may agree upon) the dispute may be

resolved through the procedures

specified in Section 12.2.’’

Response: Western agrees with the

suggested concept and has modified

Section 12.1 to allow external dispute

resolution under Section 12.2 if

disputes can not be resolved in 30 days.

Comment: Several commentors stated

that Western should modify the final

Tariff to provide that the Transmission

Provider; i.e., the appropriate Regional

Office of Western, agrees to apply the

dispute resolution process adhered to by

the regional transmission group to

which the Transmission Provider

belongs.

Response: Western agrees and has

modified Section 12.2 to incorporate the

suggested concept.

Comment: A commentor stated that

Western must include a Dispute

Resolution Procedure in Section 12 that

is binding on Basin Electric Power

Cooperative, Inc. (BEPC) and Heartland

Consumers Power District (HCPD).
524 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Response: Western’s Upper Great

Plains Region (UGPR) is the

Transmission Provider and all disputes

between the Transmission Provider and

the transmission customer will be

subject to the dispute resolution

procedures of the Tariff, thus no

modifications are warranted. Disputes

that involve only a transmission

customer and either BEPC or HCPD

could still be resolved under

appropriate Mid-Area Continent Power

Pool (MAPP) procedures whenever it

involves an issue discrete to either and

is not a part of the general Tariff

provisions.

Comment: A comment was made that

Western should incorporate the word

‘‘uncommitted’’ in various sections of

the Tariff, including Sections 13.5, 27.0,

and 33.2.

Response: The addition of this term

could jeopardize Western’s ability to

meet FERC’s test for comparability.

Therefore, Western has not made the

suggested changes.

Comment: A commentor requested

that in Sections 13.8 and 14.6 the

reference to 10 a.m. should include a

time zone; e.g., MST or PST for each

operating area, and delete the language

in the brackets.

Response: Western adopted the

language of the pro forma tariff. Since

this is a Western-wide document,

Western is unable to assign a time zone.

Western’s scheduling offices are located

in three different time zones. The 10

a.m. reference applies to the time of the

appropriate scheduling office from

which transmission service is being

requested.

Comment: A commentor requested

that the phrase, ‘‘This does not apply to

the Colorado River Front Work and

Levee System or the Salinity

transmission system’’, be inserted at the

end of Section 15.4.

Response: The last sentence in

Section 15.4 addresses this comment.

The facilities identified in the comment

are considered distribution facilities and

are not subject to the Tariff. Request for

service on these facilities will be

handled on a case-by-case basis.

Comment: Several commentors

strongly encouraged the inclusion of

transmission losses in Sections 15.7 and

28.5 of the Tariff and that the associated

section in the applicable Service

Agreements be removed, thus providing

them with some reasonable assurance

that these factors will be applied in a

non-discriminatory and comparable

manner.

Response: Since this is a Westernwide document and transmission loss

factors are calculated separately for each

Transmission System, Sections 15.7 and

28.5 of the pro forma tariff were

modified to allow the applicable

transmission loss percentages to be

included in the Regional Office specific

Service Agreements. Each of Western’s

Regional Offices periodically modifies

its Transmission System loss factors

based on system losses and all of its

Regional Office(s) s are subject to these

loss factors.

Comment: A commentor requested

that Western, in Sections 17.2(iv) and

18.2, insert ‘‘or other’’ after ‘‘Regional

Transmission Group (RTG).’’

Response: The commentor’s proposed

language is too broad and might

adversely affect the rights of entities that

are not parties to the agreement.

Therefore, this change was not made.

Comment: Several commentors made

the comment that Western’s proposed

application processing fees in Sections

17.3 and 29.2 are inconsistent with the

pro forma provisions, and that the

processing fee or at least some portion

should be refunded if the request for

transmission service is denied by

Western. It is the opinion of the

commentors that, as written, Western’s

processing fee procedures do not

provide reciprocal service, and Western

provides no numerical justification for

the processing fees included in

Attachment K.

Response: The processing fee is being

collected to offset those costs incurred

by Western in processing applications

for transmission service. These costs

will be incurred irrespective of whether

transmission service is taken, so no

refunds will be made. In developing the

processing fee, each Regional Office

used the same method, which reflects

an average of staff wages and benefits

multiplied by the average time it takes

to analyze and respond to requests for

service. Western plans to periodically

review these costs. FERC has previously

accepted this methodology.

Comment: A comment was made that

Western should incorporate the phrase

‘‘and applicable Federal law and

regulations’’ in Section 27.0. Comments

were also made that Western should

incorporate the phrase ‘‘and permitted

by Federal law and regulations’’ in

Section 30.5. Both sections address

redispatch procedures.

Response: There are no Federal laws

governing redispatch; however, Western

does have certain limitations on this

matter based on specific power

marketing plans.

Comment: A commentor

recommended that Western insert

‘‘transmission’’ in its clarifying

statement at the end of Section 28.2, so

that there is no misinterpretation of the

meaning of capacity.

Response: Western agrees and has

made the change.

Comment: A commentor stated

FERC’s Pricing Policy provides that

Western can only charge the higher of

embedded costs or opportunity costs,

but not the sum of the two. This FERC

Pricing Policy should be applicable to

Western, since Western agreed to abide

by FERC’s rate-making policies as a

condition of its membership in

Southwest Regional Transmission

Association (SWRTA).

Response: This comment is outside

the scope of this process. Western is

meeting the rate-making policies of

FERC for Federal Power Marketing

Administrations as agreed in the

SWRTA agreement.

Comment: A commentor suggested

that, in Section 30.8 in the second line

after the word ‘‘the’’ and before

‘‘Transmission Provider’’, Western

insert ‘‘available capability of the’’.

Response: Western has stated in

Attachment K to its Tariff that only

excess transmission capability will be

available and has found this change

unnecessary. This excess transmission

capability will be determined as

provided in Attachment C to the Tariff.

Comment: A commentor asked what

is Federal policy as mentioned in

Section 34.0. Is it published and who

has oversight—FERC? What if it

conflicts with FERC? The same

commentor also asked what is meant by

applicable Federal law and regulations,

and is it different region-by-region or is

it consistent region-by-region? The

commentor further asked what are

Western’s current applicable laws and

regulations relating to stranded costs?

Response: Federal policy as used in

Section 34.0 includes FERC’s policies,

regulations and rulings pertaining to

open access transmission service to the

extent consistent with the body of

Federal laws governing Western’s

activities. Applicable Federal law and

regulations are the body of statutes and

regulations governing the activities of

Western as a Federal Power Marketing

Administration. Treatment of stranded

costs by Western will be governed by

the principles contained in FERC Orders

No. 888 and 888–A, related rulings and

orders promulgated by FERC, and

Western’s statutory obligations as a

Federal Power Marketing

Administration.

Comment: Several commentors made

comments regarding Western’s decision

to change certain pro forma tariff

sections to require advance payment for

the cost of any necessary transmission

facility additions and the associated

studies, and provide no interest on

those advances. There is also a concern
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 525

that public agencies may not be able to

meet the deadlines for providing

advances of funds for Facilities Studies

and New Construction, and that there

may be improper cost shifting of Direct

Assignment Facilities to other nonbenefiting transmission customers.

Response: The Anti-Deficiency Act,

31 U.S.C. 1341(a), and other

appropriations laws allow Federal

agencies to incur obligations and make

expenditures only in amounts available

in an appropriation or fund and

available to the government for the

purpose for which the appropriation or

fund is budgeted. Therefore, Western

will request an advance of funds for

construction of Direct Assignment

Facilities in the construction agreement

for such facilities as described in

Sections 19.4 and 32.4. Recurring

operation and maintenance costs related

to Direct Assignment Facilities will be

assessed on a periodic basis as set forth

in the Service Agreement. This process

will assure the proper allocation of costs

among customers taking transmission.

Western will return the unexpended

portion of any funds advanced for

studies or construction. Western is not

able to pay interest on advances without

shifting costs to other customers.

As for certain public agencies unable

to meet the deadlines for providing

advances of funds, Western will follow

the deadlines required in the Tariff

which, in turn, are the same as those in

the pro forma tariff. To do otherwise

could impair Western’s ability to meet

FERC’s requirement that all requestors

be treated in a non-discriminatory

manner.

Comment: A commentor stated that

Schedules 2 through 6 of the Tariff

outline Western’s offer to provide

certain Ancillary Services as both the

Transmission Provider and the Control

Area operator. The commentor has no

objection to these schedules if Western

has available Ancillary Services to

provide. However, the commentor is

concerned that its generating resources

and those of other parties may be used

by the Control Area operator, Western,

to provide Ancillary Services without

compensation to the owning utilities. Of

course, the opposite outcome could

occur also. The commentor encourages

Western to take the lead in establishing

effective and practical operating

measures to assure proper accounting

for Ancillary Services. Western should

also consider joint participation by all

Control Area generators in supplying

these services.

Response: Western appreciates the

comment and will take the lead in

establishing effective and practical

operating measures to assure proper

accounting for these Ancillary Services.

Comment: A few commentors stated

their concern about the narrow

bandwidth allowed for deviation from

scheduled transactions contained in

Schedule 4. One commentor believes

that it will be extremely difficult to stay

within this bandwidth because of

limitations and errors in metering,

scheduling practices, and unit control,

and urges Western to adopt a broader

deviation bandwidth, ±3.0 percent at a

minimum, in order to mitigate these

control and scheduling problems.

Another commentor stated that some of

Western’s rate proposals include

penalties of monetary charges for

deviations beyond the scheduling band.

This commentor does not agree that a

‘‘one size fits all’’ band is necessary and

believes that any monetary charges

should be cost based.

Response: Western is consistent with

FERC Order Nos. 888 and 888–A on this

service. The monetary charge is a rate

issue and is outside the scope of this

process.

Comment: A commentor stated that

the accurate measurement of energy

imbalances (Schedule 4) may not be

possible in the UGPR. This is because

there may be more than one supplier at

a single point of measurement.

Determining who was the cause of the

imbalance may only be possible during

after-the-fact analysis. The power

supplier may not be responsible for

being a Control Area operator and it

may be the operator who causes the

problem. The commentor states that

they do not have accounting that would

allow them to do this on an hourly basis

and the imbalance may change from

supplier to supplier within that period.

Response: Western recognizes that

there are limitations to the capability of

existing metering. However, FERC did

not mandate next hour settlement of

energy imbalances. This is a matter that

will need to be further refined in

development of Regional Tariff

implementation procedures.

Comment: A commentor stated that

there seems to be a redundancy in the

information being requested in Sections

3.0, 4.0, and 5.0 of the Specifications for

Long-Term Firm Point-to-Point

Transmission Service in Attachment A.

The commentor is questioning whether

the bill to the customer will be based on

the Capacity Reservation in Section 3.0,

the Capacity Reservation in Section 4.0,

or on the Reserved Capacity in Section

5.0.

Response: The information requested

in these sections is necessary for

multiple point-to-point transactions.

The bill to the customer will be based

on the Reserved Capacity in Section 5.0.

In accordance with Section 13.7(c) of

the Tariff, the amount in Section 5.0

will be the greater of the sum of the

Point(s) of Receipt in Section 3.0 or the

sum of the Point(s) of Delivery in

Section 4.0.

Comment: A commentor stated that

the control area information requested

in Section 2.0 of the Specifications for

Long-Term Firm Point-to-Point

Transmission Service in Attachment A

is considerably different than the

Control Area information obtained from

Sections 1.0 or 4.0. The Control Area to

be referenced in Section 2.0 could be

hundreds, or thousands, of miles from

the Control Area of the Point of Receipt/

Point of Delivery.

Response: Section 2.0 is intended to

define the Control Area in which the

transaction originates, while Sections

3.0 and 4.0 define the Point(s) of

Receipt/Delivery into and out of the

Transmission Provider’s Transmission

System. Western has followed the FERC

pro forma tariff wording in these

sections, and has found no reason to

change the pro forma language.

Comment: A number of commentors

made comments regarding Western’s

ATC, including suggestions that the

methodology for determination of ATC

must be set out in Attachment C and it

must be reasonable, auditable, and

supportable, and it should involve

customer groups. Another commentor

similarly requested that Western

reference criteria specified within the

SWRTA and/or Western Regional

Transmission Association, Inc. (WRTA)

agreements.

Response: Western has stated in

Attachment C that it will use ‘‘Good

Utility Practice and the engineering and

operating principles, standards,

guidelines, and criteria of the * * *

applicable Regional Reliability Council,

and any entity of which the

Transmission Provider is a member

* * * such as a regional transmission

group.’’ Many customers are also

members of these regional transmission

groups. The methodology outlined in

the specific regional transmission group

criteria provides a clear set of guidelines

for both Western and the transmission

customer to evaluate Western’s

determination of ATC. This approach is

consistent with filings approved by

FERC for public and non-public

utilities.

Comment: A commentor had concerns

with the last sentence of Attachment C

which refers to reserving transmission

capability for ‘‘forecasted power service

obligations.’’ It is improper for Western

to withhold transmission capability in

order to enhance future power
526 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

marketing activities, and the inclusion

of this phrase violates both the letter

and intent of FERC Order Nos. 888 and

888–A.

Response: In FERC Order Nos. 888

and 888–A, Section IV.C(5), FERC stated

that, ‘‘utilities may reserve existing

transmission capacity needed for Native

Load growth and Network load growth

reasonably forecasted within the

utility’s current planning horizon.’’ The

Transmission Provider may market this

capacity on a firm or non-firm basis

until such time as the capacity is

required by Native Load and Network

Customers. Western has the same right

to obtain transmission service for its

own marketing activities as others have

to obtain transmission service from

Western for their marketing activities.

Comment: Western received a

comment that Attachment F and

Attachment G require overlapping

information.

Response: The information required

in Attachment F and Attachment G is

not overlapping. Attachment G

addresses technical and operational

matters associated with the

implementation of Attachment F.

Comment: Western received several

comments regarding its proposed 10

times penalty included in Attachment H

to the Tariff, and requesting Western to

delete the 10 times penalty.

Response: Western believes the

penalty is more appropriately addressed

in Regional Office specific rate

processes, and, therefore, has deleted

the 10 times penalty from Section 3.0 of

Attachment H.

Comment: A commentor asked if the

general contract provisions: Contingent

Upon Appropriations—Section 2.0,

Contract Work Hours and Safety

Standards—Section 4.0, Equal

Employment Opportunity Practices—

Section 5.0, and Use of Convict Labor—

Section 6.0, of Attachment J are

necessary in these types of contractual

relationships.

Response: These provisions are

required by law to be included in

Federal contracts.

Comment: Several commentors stated

that Section 7.0 of Attachment J gives

Western the unilateral right to terminate

service if it joins or is required to

conform to the protocols of an

independent system operator (ISO). By

itself, the fact that Western joins an ISO

does not automatically relieve Western

of its obligation to provide comparable

transmission service. The language

referring to Western’s unilateral right to

terminate service is improper and

should be removed.

Response: This language is required

in the Sierra Nevada Region (SNR)

Service Agreements consistent with the

findings of FERC in Pacific Gas and

Electric Company, et al., 81 FERC ¶ 61,

122 (1997). Western has moved this

provision from Section J to the Service

Agreements and this language shall be

included by SNR in any Service

Agreements entered into under this

Tariff. Similar language may be required

in the future by other Western Regional

Offices which join ISO’s to conform to

the terms and conditions of the ISO

agreement approved by FERC.

Comment: A commentor stated that

Section 8.0 of Attachment J could be

interpreted to bar the resale of

transmission rights when such resale is

provided for under FERC Order Nos.

888 and 888–A.

Response: The original Section 8.0 of

Attachment J, ‘‘Third Party Rights’’, has

been deleted.

Comment: A commentor asked what

third party rights BEPC and HCPD have

under Section 8.0 of Attachment J.

Response: The original Section 8.0 of

Attachment J, ‘‘Third Party Rights’’, has

been deleted.

Comment: A commentor asked why

Western includes the phrase

‘‘emergency power’’ in Section 10.0 of

Attachment J since the Tariff is for

transmission service only and it does

not provide for Western to supply

capacity and energy. The same

commentor asked how does Western

define emergency power and under

what circumstances will it be provided?

Response: Western has modified

Section 10.0 of Attachment J to remove

the reference to emergency power.

Comment: A commentor stated that

the billing adjustments contemplated in

Sections 13.0 and 14.0 of Attachment J

need to include refunds of advances.

Response: Sections 13.0 and 14.0 are

not the mechanism for Western to

provide refunds for funds advanced to

Western. Western added language to

Sections 19.4 and 32.4 to clarify that

amounts advanced in excess of costs

incurred will be refunded.

Comment: Several commentors have

raised issues regarding the bill crediting

and net billing language in Sections 13.0

and 14.0 of Attachment J to the Tariff.

There is a concern that the language is

too broad and creates the potential for

abuse. The provisions in Attachment J

and the associated language in the

proposed Service Agreements use the

leverage of access to Western’s

Transmission System to require the

transmission customer to agree to

Western’s Net Billing and Bill Crediting

procedures as a condition for service

and as means to provide alternative

financing for Western. These provisions

appear to be in conflict with the

functional unbundling requirements of

FERC Order Nos. 888 and 888–A and

may, in fact, require the transmission

customer to violate its own Standards of

Conduct implementing FERC Order No.

889 and 18 CFR part 37. All provisions

requiring the transmission customer to

agree to Net Billing and Bill Crediting

procedures as a condition for service

under the Tariff must be removed.

Response: Western has modified these

sections to clarify that the ‘‘Net Billing

and Bill Crediting’’ provisions are

optional. The inclusion of these

provisions in the Tariff is nondiscriminatory because they are not a

condition for receiving service.

Comment: Western received several

comments regarding proposed changes

to Attachment K. A comment was

received requesting that the phrase

‘‘* * * from the Navajo Project for the

Central Arizona Project, Boulder

Canyon Project and the * * *’’ be

deleted from the Desert Southwest

Region’s (DSR) section of Attachment K.

Another commentor requested that the

phrase ‘‘* * * of the Parker DavisProject in DSR * * *’’ be inserted. The

same commentor also requested that in

the first paragraph of Attachment K, that

Western delete the phrase ‘‘* * * and

one coal fired power plant in Arizona

* * *,’’ and replace the word

‘‘integrated’’ with ‘‘interconnect.’’ A

commentor requested that in the

seventh paragraph of Attachment K that

Western change ‘‘little flexibility’’ to

‘‘little or no flexibility.’’

Response: Western concurs with the

comments and has made the changes to

Attachment K.

Comment: A commentor proposed the

following language for inclusion in the

fourth paragraph of Attachment K,

which would read as follows:

* * * treat its Federal Customers in a

manner analogous to the treatment of Native

Load Customers by public utilities. The

enabling legislation for the various projects

authorizes both transmission and generation

project expenses and contemplates recovery

of these through power rates. For these

reasons, Western will continue to recover

transmission and generation related costs

from Federal Customers through a bundled

power sales rate. Western is committed to

providing * * *

Response: Western does not believe

that it is necessary to add the proposed

text to Attachment K. The issue of cost

recovery will be addressed on a case-bycase basis in the appropriate rate

process.

Comment: A commentor stated that

Sections 17.1 and 29.2 require that a

written application for long-term, firm

service be submitted to the ‘‘appropriate

Regional Office, as identified in
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 527

Attachment K.’’ However, Attachment K

provides no address, title, or even a

phone number, to which such an

application can be submitted. Western

should correct Attachment K to include

this information for each Regional

Office.

Response: Western has noted the

omission and has included the

appropriate information in Attachment

K to the Tariff.

Comment: Two commentors stated

that there is no applicable definition for

Federal project use loads.

Response: Western has modified

Attachment K to the Tariff to clarify that

Reclamation is responsible for providing

Federal power resources to its project

use customers. Western believes that

this modification is sufficient to address

this comment.

Comment: A commentor stated that

Attachment K should include language

stating that there will be no on-going

transmission reservation maintained for

incremental sales and that when

Western does reserve transmission

capacity for incremental sales, it will do

so through its Open Access Same-Time

Information System (OASIS) and

account for such reservation as a Third

Party Sale pursuant to Section 8.0 of the

Tariff.

Response: The Tariff provides for the

required treatment and Western has

found no reason to include additional

language as proposed by the

commentor.

Comment: Western received many

comments that raised issues concerning

its obligations to serve Federal loads

and the relationship of this obligation to

Western’s ability to comply with open

access comparability standards set forth

by FERC in Orders No. 888 and 888–A.

The following summarizes the

comments.

Western should be consistent between

all of its Regional Offices in treating its

existing transmission obligation to

Federal customers as existing Point-toPoint Service. Any new sales Western

makes to Federal customers should be

unbundled and accounted for under the

Tariff as Point-to-Point Service.

Transmission for incremental sales to

Federal customers should be reserved,

provided, and accounted for as Point-toPoint Transmission Service under the

Tariff.

It may be appropriate for Western to

identify existing Federal customers as

Native Load, but such partial

requirements service at a discrete Point

of Delivery clearly does not meet the

definition of Network Load as set forth

in Section 1.22.

To the extent Western has firm service

obligations to Federal customers,

reserving firm transmission capacity is

appropriate. To the extent that Western

intends to reserve firm transmission on

its system in order to maintain the

opportunity to make incremental sales

to Federal customers above and beyond

Western’s firm obligations under certain

favorable hydrologic conditions, such

transmission reservations for generation

merchant activities appear to be in

direct conflict with the functional

unbundling requirements of FERC Order

No. 888.

Western has not clearly distinguished

the jurisdictional separation of its

statutory service from its proposed

service under Western’s Tariff. Western

needs further revisions to its Tariff to

clearly delineate the jurisdictional

difference.

Western should perform two separate,

parallel functions: statutory

transmission service and third party

transmission service.

Include the term ‘‘Federal Customer’’

in various places of the Tariff other than

Attachment K.

In Attachment K, include the word

‘‘retail’’ before the word ‘‘Native’’ in the

sentence which describes Western’s

treatment of its Federal customers.

The use of the term ‘‘Native Load’’

appears as an intention to unbundle

firm electric service arrangements.

Several commentors disputed Western’s

claim that its deliveries of power to

Federal customers, defined by Western

as ‘‘the statutory and firm electric

service and project use power users of

the Federal Government’’ are analogous

to a public utility’s deliveries to its own

native load customers. Other comments

included suggestions on how to redefine

Federal customers and Federal

generation and a suggestion that

Western’s deliveries were more

precisely analogous to a public utility’s

retail Native Load.

The reservation provisions (2.2, 13.6

and 33.2) will not work. First, carried to

its extreme, all current firm electric

service contractors could cancel their

contracts and be left with the ability to

transfer other resources across Western’s

system, leaving Western no system to

deliver hydropower.

The curtailment of contractors’ firm

electric service deliveries

simultaneously with third party use of

the system violates Western’s statutory

mandate. Another commentor stated

that pro rata curtailments put Western’s

preference customers in the position of

subsidizing third party transmission

contractors.

A qualifier statement should be

included in Section 33.0 to explain the

process of load shedding and

curtailment to be used, such as ‘‘* * *

that only load shedding and

curtailments covered in this section are

for new contracts entered into on the

OASIS. They do not include existing

contracts * * *’’ Other commentors

stated that there is no indication of how

Reclamation’s project use loads are

served with Federal transmission

capacity and expressed concern as to

the applicability of curtailment.

How will load shedding and

curtailment provisions of Section 33.0

work?

Response: Individual project

authorization acts have provided

Western the obligation and authority to

market capacity and energy surplus to

the needs of these multi-purpose

projects. Western manages its

transmission systems to meet these

needs as well as to ensure the reliable

operation of the overall transmission

systems for which it is responsible.

Section 211 of the Federal Power Act

also requires Western to provide open

transmission access. Western will meet

all of these obligations in the following

manner. Use of transmission facilities

that Western owns, operates, or to

which it has contract rights for delivery

of Federal long-term firm capacity and

energy to project use and electric service

customers is a Western responsibility

under the terms and conditions of

marketing criteria and electric service

contracts implementing statutory

obligations to market Federal power.

This is complementary with the

provisions of the Tariff. Transmission

service provided by Western under the

Tariff is solely for the use of ATC in

excess of the capability Western

requires for deliveries of long-term firm

capacity and energy to project use and

electric service customers of the Federal

government. Western has also stated

that nothing in the Tariff shall alter,

amend, or abridge the statutory or

contractual obligations of Western to

market and deliver Federal power

resources and to repay the Federal

investment in its projects.

Western has found it is no longer

necessary to state that service to

customers of the Federal government is

analogous to service provided to Native

Load Customers by public utilities. The

term ‘‘Federal Customers’’ has been

deleted from the Tariff. Further,

Western clarifies that deliveries to

discrete points of delivery can be made

under existing authorities and contracts

and deliveries of additional power at the

same point may be made under the

Tariff without violating the provisions

of Section 1.22 of the Tariff. Western

will use the Tariff for all Third Party

Sales.
528 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Western will operate its system

according to Good Utility Practices, and

unless otherwise provided for in

existing contracts or regulations, will

perform curtailments and other

emergency procedures in a nondiscriminatory manner in accordance

with the terms of the Tariff and the

governance of the National Electric

Reliability Council, an RTG, or ISO as

appropriate.

Western has modified the Tariff to be

consistent with the above statements.

Comment: A commentor asked what

does the term ‘‘unused capacity’’ in

Attachment K mean and how does it

apply to UGPR? Does Western have the

right to terminate service if it

determines the unused capacity no

longer exists?

Response: Attachment K has been

modified by deleting the term ‘‘unused

capacity’’. Once committed to

contractually, transmission capacity

will be available to a transmission

customer for the duration of the contract

term in conformance with the

provisions of the Tariff.

Comment: A commentor stated that

preference should apply to rights to

excess capacity on the Federal

Transmission System.

Response: Neither Section 9(c) of the

Reclamation Project Act of 1939 nor

Section 5 of the Flood Control Act of

1944 require Western to give preference

in the sale of excess transmission

capacity to any particular type of entity.

Comment: A commentor stated that

Western must jurisdictionally separate

statutory service and tariff service

because Western does not have new

Environmental Impact Statements or

Endangered Species Act determinations

which indicate Western can provide

Network Integration Transmission

Service or Ancillary Services from its

generation. Western’s power contracts

should not require future unbundling of

transmission service because the

unbundling of contracts and power

deliveries may in fact be in

contradiction of the environmental

analysis performed for each of the

power contract extensions. Another

comment was made that Ancillary

Services are generation-related but were

not included in any environmental

analyses for river ecosystem, hydrodam

operations, or power marketing.

Response: Western has not committed

or proposed any construction of specific

new transmission or generation facilities

in the Tariff. The establishment of

contract language and transmission

arrangements that do not involve: (1)

The integration of a new generation

resource, (2) physical changes in the

transmission system beyond the

previously developed facility area, or (3)

changes in the normal operating limits

of generation resources is categorically

excluded by DOE regulations from the

preparation of an environmental

assessment (EA) or environmental

impact statement (EIS). Nothing in this

generic contract language requires or

causes such events to occur. If and

when Western proposes to enter into a

contract or transmission agreement

which it reasonably would expect to

require or cause such events to occur,

Western will prepare appropriate

documentation for its actions in

compliance with the National

Environmental Policy Act of 1969, as

amended, 42 U.S.C. 4321–4347, Council

of Environmental Quality regulations,

40 CFR 1500–1508 and DOE regulations

at 10 CFR part 1021.

Western’s power contracts do not

require future unbundling of

transmission service. Decisions related

to unbundling will be determined

through a separate process.

Comment: Several commentors stated

that they do not see how Western can

maintain its statutory obligations to

generate and deliver the maximum

amount of firm capacity and energy to

preference customers while unbundling,

unless Western offers other services.

Response: This comment does not

accurately describe Western’s statutory

obligations. The creation of the Tariff

does not affect Western’s obligations

under existing contracts.

Comment: A commentor stated that

unbundling will produce cost-shifts in

the projects that are statutorily costrecovery based.

Response: Western is complying with

FERC Order Nos. 888 and 888–A. This

requires the unbundling of Ancillary

Services from transmission service for

service under the Tariff. The rates for

these services are based on the costs

incurred to provide these services. Any

revenues received from these services

will be applied to project repayment.

Comment: A commentor stated that

unbundling of firm electric service

leaves no recourse but to file under

Section 211 of the Federal Power Act.

Customers may need more up-front

oversight of Western’s actions, such as

Sections 205 and 206 require of FERC

jurisdictional utilities.

Response: Oversight of Western’s

activities is outside the scope of this

process.

Comment: Two comments were

received stating that the reference to

‘‘Western’s hydroelectric power

facilities’’ is incorrect. The facilities

referred to are Reclamation’s

hydroelectric power facilities.

Response: Western agrees with this

comment.

Comment: A commentor noted that in

FERC Order No. 888–A, FERC decided

to implement Service Agreement

procedures for firm point-to-point

transactions of less than a year in

duration (short-term firm) that are

similar to those for non-firm point-topoint service. In other words, only one

umbrella service agreement needs to be

executed. Subsequent short-term firm

transactions need only be requested and

reserved via the OASIS. The commentor

encourages Western to include in its

Tariff a form of umbrella service

agreement for Short-term Firm Point-toPoint Transmission Service that will

operate in a similar manner to the

Service Agreement for Non-Firm

Service.

Response: Western agrees that

Attachment A may be used as an

umbrella service agreement for Shortterm Firm Point-to-Point Transmission

Service.

Comment: A commentor stated that

the Tariff includes modifications to

recognize Western’s distinction as a

Federal entity, and this seems to include

non-Federal entities under the cloak of

Federal law.

Response: These modifications apply

to UGPR as the operator/manager of the

Integrated System (IS). These

modifications do not bring BEPC or

HCPD under the cloak of Federal law.

Comment: Several commentors

commended Western for its efforts in

developing its proposed open access

transmission service Tariff. With the

understanding that Western is

committed to working to modify its

Tariff when it is found to be warranted,

these commentors also support both the

Tariff and Western’s filing of the Tariff

with FERC.

Response: Western appreciates these

comments.

Comment: A commentor stated that

all references to stranded costs should

be deleted from the Tariff.

Response: The right to collect

stranded costs is recognized in FERC

Order Nos. 888 and 888–A. The

stranded cost language in Western’s

Tariff is modeled upon the language in

FERC’s pro forma tariff. Recovery of

stranded costs is neither incorporated in

any of the Regional Office’s proposed

rates nor in the Open Access

Transmission Rate formula for the

UGPR.

Comment: A commentor asked

Western what is its authority to collect

stranded costs for BEPC and HCPD.

Response: Attachment K recognizes

the right of UGPR, BEPC, and HCPD to

collect stranded costs in accordance
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 529

with the principles established in FERC

Order Nos. 888 and 888–A. Attachment

K states that the collection of stranded

costs by BEPC and HCPD will be subject

to contracts separate from the Tariff.

Comment: Two commentors

requested that Western’s DSR and SNR

implement the Ancillary Services,

Schedules 1 through 6 under the Tariff,

as a separate tariff on an interim basis

to resolve areas of concern.

Response: The provision of Ancillary

Services is an integral part of FERC’s

pro forma tariff and cannot be separated

from Western’s Tariff. Western is

concerned that any further qualifiers on

the provision of Ancillary Services

could impair Western’s ability to pass

FERC’s standards for comparability.

This, in turn, would impair Western’s

ability to obtain reciprocal transmission

service from public utilities. Therefore,

Western will not consider implementing

the Ancillary Services portion of the

Tariff on an interim basis.

Comment: Two commentors stated

that the language in each of the service

schedules concerning pass-through

costs from the Control Area operator

does not apply in those cases when

Western is not the Control Area

operator. Reclamation does not pass the

costs for generation through the Control

Area operator in those cases, but

allocates the costs to Western, who

passes the costs through to the

transmission customer.

Response: These provisions provide

Western the ability to purchase capacity

and energy from others when it is

necessary and pass those costs on

directly to the beneficiary. This is a

transaction involving only the Control

Area operator, the transmission

customer, and Western.

Comment: A commentor suggested

that Western’s statutory obligations

prevent it from effectively providing

those Ancillary Services which involve

the dedication of generation resources

or output to non-Federal customers.

Western should specifically limit itself

to brokering these types of Ancillary

Services to its transmission customers.

Response: Western does recognize

resource limitations of the hydroelectric

generation. Section 3 of the proposed

Tariff was modified to include the

option for Western to purchase

Ancillary Services and pass through

such costs to the transmission customer.

Comment: A commentor stated that it

understands that Western will honor

existing transmission service contracts

without compelling existing customers

to sign a Service Agreement under the

Tariff. The commentor recommended

that this commitment be described in

Attachment J.

Response: Western will honor existing

transmission service contracts without

compelling existing customers to sign a

Service Agreement under the Tariff.

Western does not believe this needs to

be specified in Attachment J. The Tariff

provides for any new requests for

transmission service.

Comment: A commentor stated that

Western’s power factor requirement

should be clearly stated in the Tariff.

Response: There is no single Western

power factor requirement. Western will

include the applicable power factor

requirement for each Regional Office in

the offered Service Agreements.

Comment: A commentor asked that if

the Tariff is binding upon Western, by

what means would the Tariff be made

binding on BEPC and HCPD?

Response: If the IS rate is approved in

the rate setting public process, then the

UGPR will enter into the contracts with

BEPC and HCPD for the management

and operation of the IS. Such

contractual arrangements will make the

terms of the Tariff binding upon BEPC

and HCPD. This would preclude either

BEPC or HCPD from making separate

arrangements to sell transmission

service over the IS.

Comment: A commentor is very

supportive of Attachment F having

provisions for a credit for integrated

facilities and looks forward to

negotiations to recognize and equitably

credit customer facilities that have

augmented the Federal system.

Response: Western appreciates the

comment.

Comment: Western received a

comment that Attachment K states that,

‘‘Western will sell transmission service

using Federally owned or controlled

facilities only to the extent that

transmission capacity is available in

excess of that needed to deliver Federal

power.’’ This is inconsistent with the

inclusion of non-Federal facilities in the

definition of Transmission System.

Response: This comment is outside of

the scope of this process. The

determination of the facilities to be

included in the Transmission System

will be developed in the rate process.

Comment: A commentor stated that

Attachment K to the Tariff describes the

UGPR’s intent to include the facilities of

BEPC and HCPD in the UGPR

transmission facilities. UGPR also

includes provisions for recovery of

stranded costs. The commentor

recommends that the other Regional

Offices’ plans for their respective ratemaking activities remain open to the

possibility of incorporating this or

similar joint rates.

Response: This issue is better

addressed on a case-by-case basis in the

appropriate rate process.

Comment: Several commentors have

raised concerns regarding Western’s

provisions in the Tariff for changing

rates. It appears to certain commentors

that Western may change a rate only to

an individual customer.

Response: The language is not

intended to imply that Western will

unilaterally change rates to one

customer. Western’s Regional Offices

change rates through rate adjustment

processes pursuant to Federal law and

apply the rates uniformly to their

respective customers.

Comment: Commentors raised a

number of issues that related to

Western’s rate setting processes,

including among others, inclusion of

specific rates and charges with the

Tariff, allocation of costs between

transmission and ancillary services,

inclusion of various costs and facilities

in transmission rates, and rate setting

methodology.

Response: These comments are

outside the scope of this process. Each

of Western’s Regional Offices is at a

different point in the process of

developing open access transmission

rates. Western’s Regional Offices follow

a separate and distinct process for the

approval of their rates, which involves

considerable public involvement and

filing of the final rates with FERC. DOE

approval of Western’s rates is addressed

in DOE Delegation Order No. 0204–108.

Western’s procedures for public

involvement for rate procedures are

covered in 10 CFR part 903. Filing

requirements and procedures for FERC

review of Federal Power Marketing

Administration rates are detailed in 18

CFR part 300. Since Western’s rate

procedures are handled through so

many separate processes, Western will

not include specific rates and charges in

the Tariff.

Comment: A commentor stated that

the distinction between the

transmission system used to deliver

Federal power to UGPR’s customers and

the larger, more expensive system

proffered for service to third parties

does not comport with comparability.

Response: Transmission service to

existing UGPR firm power customers is

provided for under the provisions of

existing contracts. This is consistent

with FERC’s treatment of such existing

contracts under FERC Order Nos. 888

and 888–A.

Comment: A UGPR customer

commented that in Section 2.2, existing

firm electric service customers should

not be subject to paying a transmission

service rate that is different than all
530 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

other preference power customers

simply due to the timing of a contract

expiration or renewal.

Response: UGPR intends to have a

single firm power rate for all preference

customers who execute service

agreements for implementation of the

Post-85 Marketing Plan.

Comment: The statutory obligations

referred to in Section II of the Federal

Register are significant and important

enough to be contained in the Tariff

possibly at Section 11.0 of Attachment

J.

Response: Western agrees that the

various statutes governing Western’s

actions are significant, but does not

agree that it would be appropriate to

include a listing in the Tariff.

Comment: Existing preference

customers should not be impacted by

Western’s commitment to meet the load

growth of Network Integration

Transmission Service Customers.

Response: This comment is a rate

issue and is outside of the scope of this

process.

Comment: One commentor stated that

Western must carefully weigh the

requirements of compliance with FERC

Order No. 889 Standards of Conduct.

Response: Western will comply with

FERC Order No. 889.

IV. Summary of Significant Changes

From Western’s Proposed Tariff

In Section 1.46, Western deleted

portions of the additional language that

were not necessary. In Section 1.49,

Western reverted to the pro forma

language. In Section 3, Western

modified the proposed additional

language to clarify Western’s

commitment to make every effort to

provide Ancillary Services from

purchased generation when Western’s

own resources are unavailable. In

Section 10.1, Western removed the

proposed additional language.

Western reinstated the last sentence

in Section 12.1 except for ‘‘submitted to

arbitration and’’, and ‘‘arbitration.’’

Those two phrases remained stricken. In

Section 12.2, Western replaced the

proposed language with language that

refers to RTG dispute resolution

processes.

In Sections 19.4 and 32.4, Western

replaced ‘‘provide the required letter of

credit’’ with ‘‘pay the transmission

customer’s share of the costs’’ and

added language that Western will

refund amounts advanced in excess of

costs incurred.

A minor change was made to Section

29.1 consistent with the minor change

in FERC Order 888–B, 81 FERC

¶ 61,248, issued November 25, 1997.

In Attachment H, Western removed

references to the 10 times penalty

provision. Western moved the

provisions relating to the establishment

of an ISO in Attachment J to Attachment

A, Attachment B, and Attachment F.

These terms initially will apply only to

SNR. Western deleted provisions

relating to third party rights in

Attachment J. Western clarified that Net

Billing and Bill Crediting provisions are

applicable only when mutually agreed.

In Attachment K, Western made

editorial changes including the insertion

of the address, title, and telephone

numbers of the Regional Office contacts.

Western modified its language in

Attachment K to clarify its statutory

obligation to market Federal power. The

modified language further clarifies that

this Tariff does not affect existing

contractual obligations.

V. Coordination with Adoption of Open

Access Transmission Rates

Each of Western’s Regional Offices is

at a different point in the process of

developing Open Access Transmission

Rates. DOE approval of Western’s rates

is addressed in DOE Delegation Order

No. 0204–108. Western’s procedures for

public involvement for rate procedures

are covered in 10 CFR part 903. Filing

requirements and procedures for FERC

review of Power Marketing

Administration rates are detailed in 18

CFR part 300. Until the Regional Offices

complete the processes of placing rates

in effect for the services to be provided

under the open-access tariff, they will

use existing rates when applicable.

Rates for short-term sales may be placed

in effect by Western’s Administrator and

used when no rates exist for such

services.

The new SNR rates for ancillary

services and transmission became

effective October 1, 1997, and will be

effective for a 5-year period ending

September 30, 2002.

The CRSP CSC is currently

conducting a public process to develop

transmission and ancillary service rates

consistent with FERC Order Nos. 888

and 888–A to be used with the Tariff.

The public comment period concluded

September 23, 1997. The proposed

effective date of the rates will be April

1, 1998.

The DSR began a public involvement

process to develop transmission and

ancillary service rates consistent with

FERC Order Nos. 888 and 888-A

through a series of informational

meetings with its customers held on

March 5, 1997, July 23, 1997, and

September 3, 1997. At the September 3,

1997, meeting, it was determined that

the formal process to develop new rates

will not begin until after publication of

Western’s Open Access Tariff. As a

result, the proposed effective date for

the new rates will be no later than

October 1, 1998. DSR will implement

this Tariff using rates for short-term

sales approved by Western’s

Administrator in December 1997.

The UGPR has implemented Open

Access Transmission Rates approved by

Western’s Administrator. These

transmission rates and ancillary service

rates became effective December 20,

1997, and will expire December 19,

1998. On March 28, 1997, by the

mailing of an Advance Announcement

of the transmission rate adjustment for

the Pick-Sloan Missouri Basin Program,

Eastern Division, a public process was

initiated to establish long-term Open

Access Transmission Rates for the

UGPR. UGPR has received comments

from that announcement and published

its proposal in September 1997. The

proposed effective date is February 1,

1998.

The Rocky Mountain Region (RMR)

began a formal public involvement

process on September 19, 1997, to

develop transmission and ancillary

service rates consistent with FERC

Order Nos. 888 and 888–A to be used

with the Tariff. The proposed effective

date of the rates will be April 1, 1998.

The RMR will have rates for short-term

sales in effect between the effective date

of the Tariff and April 1, 1998.

Subsequent changes to Regional

Office Open Access Transmission Rates

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

involvement and FERC review processes

outlined above.

VI. Regulatory Requirements

Review Under Executive Order 12866

Western has an exemption from

centralized regulatory review under

Executive Order 12866; accordingly, no

clearance of this notice by the Office of

Management and Budget (OMB) is

required.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act of

1980, 5 U.S.C. 601–612, requires Federal

agencies to perform a regulatory

flexibility analysis if a proposed rule is

likely to have a significant economic

impact on a substantial number of small

entities. The Acting Administrator for

Western certifies that Western’s

providing open transmission access

would not cause an adverse economic

impact on a substantial number of such

entities. Since the proposed open-access

Tariff is of limited applicability, no

flexibility analysis is required.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 531

Review Under the Paperwork Reduction

Act:

In accordance with the Paperwork

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

3520, Western has received approval

from OMB for the collection of customer

information in this rule, under OMB

control number 1910–0100.

Review Under the National

Environmental Policy Act

In compliance with the National

Environmental Policy Act (NEPA) of

1969, 42 U.S.C. 4321 et. seq.; the

Council on Environmental Quality

regulations, 40 CFR parts 1500–1508;

DOE NEPA regulations, 10 CFR part

1021, Western has determined that this

action is categorically excluded from the

preparation of an EIS or an EA.

Availability of Information

Western’s final Tariff and a redline/

strikeout comparison of Western’s final

Tariff to the FERC pro forma will be

available from the informational

contacts listed above or on the Internet

at http://www.wapa.gov.

Dated: December 15, 1997.

Michael S. Hacskaylo,

Acting Administrator.

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 I

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

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 External Dispute Resolution

Procedures

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
532 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

20 Procedures if The Transmission Provider

is Unable to Complete New

Transmission Facilities for Firm PointTo-Point Transmission Service

20.1 Delays in Construction of New

Facilities

20.2 Alternatives to the Original Facility

Additions

20.3 Refund Obligation for Unfinished

Facility Additions

21 Provisions Relating to Transmission

Construction and Services on the

Systems of Other Utilities

21.1 Responsibility for Third-Party System

Additions

21.2 Coordination of Third-Party System

Additions

22 Changes in Service Specifications

22.1 Modifications On a Non-Firm Basis

22.2 Modifications On a Firm Basis

23 Sale or Assignment of Transmission

Service

23.1 Procedures for Assignment or

Transfer of Service

23.2 Limitations on Assignment or

Transfer of Service

23.3 Information on Assignment or

Transfer of Service

24 Metering and Power Factor Correction at

Receipt and Delivery Point(s)

24.1 Transmission Customer Obligations

24.2 Transmission Provider Access to

Metering Data

24.3 Power Factor

25 Compensation for Transmission Service

26 Stranded Cost Recovery

27 Compensation for New Facilities and

Redispatch Costs

Part III. Network Integration Transmission

Service

Preamble

28 Nature of Network Integration

Transmission Service

28.1 Scope of Service

28.2 Transmission Provider

Responsibilities

28.3 Network Integration Transmission

Service

28.4 Secondary Service

28.5 Real Power Losses

28.6 Restrictions on Use of Service

29 Initiating Service

29.1 Condition Precedent for Receiving

Service

29.2 Application Procedures

29.3 Technical Arrangements to be

Completed Prior to Commencement of

Service

29.4 Network Customer Facilities

29.5 This section is intentionally left blank

30 Network Resources

30.1 Designation of Network Resources

30.2 Designation of New Network

Resources

30.3 Termination of Network Resources

30.4 Operation of Network Resources

30.5 Network Customer Redispatch

Obligation

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With The Transmission

Provider

30.7 Limitation on Designation of Network

Resources

30.8 Use of Interface Capacity by the

Network Customer

30.9 Network Customer Owned

Transmission Facilities

31 Designation of Network Load

31.1 Network Load

31.2 New Network Loads Connected With

the Transmission Provider

31.3 Network Load Not Physically

Interconnected with the Transmission

Provider

31.4 New Interconnection Points

31.5 Changes in Service Requests

31.6 Annual Load and Resource

Information Updates

32 Additional Study Procedures For

Network Integration Transmission

Service Requests

32.1 Notice of Need for System Impact

Study

32.2 System Impact Study Agreement and

Compensation

32.3 System Impact Study Procedures

32.4 Facilities Study Procedures

33 Load Shedding and Curtailments

33.1 Procedures

33.2 Transmission Constraints

33.3 Cost Responsibility for Relieving

Transmission Constraints

33.4 Curtailments of Scheduled Deliveries

33.5 Allocation of Curtailments

33.6 Load Shedding

33.7 System Reliability

34 Rates and Charges

34.1 Monthly Demand Charge

34.2 Determination of Network Customer’s

Monthly Network Load

34.3 Determination of Transmission

Provider’s Monthly Transmission System

Load

34.4 Redispatch Charge

34.5 Stranded Cost Recovery

35 Operating Arrangements

35.1 Operation under The Network

Operating Agreement

35.2 Network Operating Agreement

35.3 Network Operating Committee

Schedule 1 Scheduling, System Control and

Dispatch Service

Schedule 2 Reactive Supply and Voltage

Control from Generation Sources Service

Schedule 3 Regulation and Frequency

Response Service

Schedule 4 Energy Imbalance Service

Schedule 5 Operating Reserve—Spinning

Reserve Service

Schedule 6 Operating Reserve—

Supplemental Reserve Service

Schedule 7 long-Term Firm and Short-Term

Firm Point-to-Point Transmission

Service

Schedule 8 Non-Firm Point-to-Point

Transmission Service

Attachment A Form of Service Agreement

For Firm 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 Service Agreement For

Network Integration Transmission

Service

Attachment G Network Operating Agreement

Attachment H Annual Transmission

Revenue Requirement For Network

Integration Transmission Service

Attachment I Index of Network Integration

Transmission Service Customers

Attachment J Provisions Specific to the

Transmission Provider

Attachment K Transmission Provider

Authorities and Obligations

Open Access Transmission Service

Tariff

I. 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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 533

shortage as a result of system reliability

conditions.

1.8 Delivering Party: The entity

supplying capacity and energy to be

transmitted at Point(s) of Receipt.

1.9 Designated Agent: Any entity that

performs actions or functions on behalf

of the Transmission Provider, an

Eligible Customer, or the Transmission

Customer required under the Tariff.

1.10 Direct Assignment Facilities:

Facilities or portions of facilities that are

constructed by the Transmission

Provider for the sole use/benefit of a

particular Transmission Customer

requesting service under the Tariff.

Direct Assignment Facilities shall be

specified in the Service Agreement that

governs service to the Transmission

Customer.

1.11 Eligible Customer: (i) Any

electric utility (including the

Transmission Provider and any power

marketer), Federal power marketing

agency, or any person generating

electric energy for sale for resale is an

Eligible Customer under the Tariff.

Electric energy sold or produced by

such entity may be electric energy

produced in the United States, Canada

or Mexico. However, with respect to

transmission service that the

Commission is prohibited from ordering

by Section 212(h) of the Federal Power

Act, such entity is eligible only if the

service is provided pursuant to a state

requirement that the Transmission

Provider offer the unbundled

transmission service, or pursuant to a

voluntary offer of such service by the

Transmission Provider. (ii) Any retail

customer taking unbundled

transmission service pursuant to a state

requirement that the Transmission

Provider offer the transmission service,

or pursuant to a voluntary offer of such

service by the Transmission Provider, is

an Eligible Customer under the Tariff.

1.12 Facilities Study: An

engineering study conducted by the

Transmission Provider to determine the

required modifications to the

Transmission Provider’s Transmission

System, including the cost and

scheduled completion date for such

modifications, that will be required to

provide the requested transmission

service.

1.13 Firm Point-To-Point

Transmission Service: Transmission

Service under this Tariff that is reserved

and/or scheduled between specified

Points of Receipt and Delivery pursuant

to Part II of this Tariff.

1.14 Good Utility Practice: Any of

the practices, methods and acts engaged

in or approved by a significant portion

of the electric utility industry during the

relevant time period, or any of the

practices, methods and acts which, in

the exercise of reasonable judgment in

light of the facts known at the time the

decision was made, could have been

expected to accomplish the desired

result at a reasonable cost consistent

with good business practices, reliability,

safety and expedition. Good Utility

Practice is not intended to be limited to

the optimum practice, method, or act to

the exclusion of all others, but rather to

be acceptable practices, methods, or acts

generally accepted in the region.

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
534 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Transmission Service in conjunction

with the applicable Common Service

Provisions of Part I and appropriate

Schedules and Attachments.

1.31 Part III: Tariff Sections 28

through 35 pertaining to Network

Integration Transmission Service in

conjunction with the applicable

Common Service Provisions of Part I

and appropriate Schedules and

Attachments.

1.32 Parties: The Transmission

Provider and the Transmission

Customer receiving service under the

Tariff.

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

the Transmission Provider’s

Transmission System where capacity

and energy transmitted by the

Transmission Provider will be made

available to the Receiving Party under

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

Delivery shall be specified in the

Service Agreement for Long-Term Firm

Point-to-Point Transmission Service.

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

interconnection on the Transmission

Provider’s Transmission System where

capacity and energy will be made

available to the Transmission Provider

by the Delivering Party under Part II of

the Tariff. The Point(s) of Receipt shall

be specified in the Service Agreement

for Long-Term Firm Point-to-Point

Transmission Service.

1.35 Point-To-Point Transmission

Service: The reservation and

transmission of capacity and energy on

either a firm or non-firm basis from the

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

Delivery under Part II of the Tariff.

1.36 Power Purchaser: The entity

that is purchasing the capacity and

energy to be transmitted under the

Tariff.

1.37 Receiving Party: The entity

receiving the capacity and energy

transmitted by the Transmission

Provider to Point(s) of Delivery.

1.38 Regional Transmission Group

(RTG): A voluntary organization of

transmission owners, transmission users

and other entities approved by the

Commission to efficiently coordinate

transmission planning (and expansion),

operation and use on a regional (and

interregional) basis.

1.39 Reserved Capacity: The

maximum amount of capacity and

energy that the Transmission Provider

agrees to transmit for the Transmission

Customer over the Transmission

Provider’s Transmission System

between the Point(s) of Receipt and the

Point(s) of Delivery under Part II of the

Tariff. Reserved Capacity shall be

expressed in terms of whole megawatts

on a sixty (60) minute interval

(commencing on the clock hour) basis.

1.40 Service Agreement: The initial

agreement and any amendments or

supplements thereto entered into by the

Transmission Customer and the

Transmission Provider for service under

the Tariff.

1.41 Service Commencement Date:

The date the Transmission Provider

begins to provide service pursuant to

the terms of an executed Service

Agreement, or the date the Transmission

Provider begins to provide service in

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: The

Regional Office of the Western Area

Power Administration (Western) which

owns, controls, or operates the facilities

used for the transmission of electric

energy in interstate commerce and

provides transmission service under the

Tariff.

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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 535

Voltage Control from Generation

Sources.

The Transmission Provider is

required to offer to provide (or offer to

arrange with the local Control Area

operator as discussed below) the

following Ancillary Services only to the

Transmission Customer serving load

within the Transmission Provider’s

Control Area (i) Regulation and

Frequency Response, (ii) Energy

Imbalance, (iii) Operating Reserve—

Spinning, and (iv) Operating Reserve—

Supplemental. The Transmission

Customer serving load within the

Transmission Provider’s Control Area, is

required to acquire these Ancillary

Services, whether from the

Transmission Provider, from a third

party, or by self-supply. The

Transmission Customer may not decline

the Transmission Provider’s offer of

Ancillary Services unless it

demonstrates that it has acquired the

Ancillary Services from another source.

However, when sufficient Federal

generation is not available to provide

the required Ancillary Services, the

Transmission Provider will offer to

make every effort to purchase Ancillary

Services from others, as available. The

costs of such purchases on behalf of a

Transmission Customer will be passed

directly through to that Transmission

Customer. The Transmission Customer

must list in its Application which

Ancillary Services it will purchase from

the Transmission Provider.

If the Transmission Provider is a

utility providing transmission service,

but is not a Control Area operator, it

may be unable to provide some or all of

the Ancillary Services. In this case, the

Transmission Provider can fulfill its

obligation to provide Ancillary Services

by acting as the Transmission

Customer’s agent to secure these

Ancillary Services from the Control

Area operator. The Transmission

Customer may elect to (i) have the

Transmission Provider act as its agent,

(ii) secure the Ancillary Services

directly from the Control Area operator,

or (iii) secure the Ancillary Services

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

from a third party or by self-supply

when technically feasible.

The Transmission Provider shall

specify the rate treatment and all related

terms and conditions in the event of an

unauthorized use of Ancillary Services

by the Transmission Customer.

The specific Ancillary Services, prices

and/or compensation methods for each

are described on the Schedules that are

attached to and made a part of the

Tariff. Three principal requirements

apply to discounts for Ancillary

Services provided by the Transmission

Provider in conjunction with its

provision of transmission service as

follows: (1) Any offer of a discount

made by the Transmission Provider

must be announced to all Eligible

Customers solely by posting on the

OASIS, (2) any customer-initiated

requests for discounts (including

requests for use by one’s wholesale

merchant or an affiliate’s use) must

occur solely by posting on the OASIS,

and (3) once a discount is negotiated,

details must be immediately posted on

the OASIS. A discount agreed upon for

an Ancillary Service must be offered for

the same period to all Eligible

Customers on the Transmission

Provider’s system. Sections 3.1 through

3.6 below list the six Ancillary Services.

3.1 Scheduling, System Control and

Dispatch Service: The rates and/or

methodology are described in Schedule

1.

3.2 Reactive Supply and Voltage

Control from Generation Sources

Service: The rates and/or methodology

are described in Schedule 2.

3.3 Regulation and Frequency

Response Service: Where applicable the

rates and/or methodology are described

in Schedule 3.

3.4 Energy Imbalance Service:

Where applicable the rates and/or

methodology are described in Schedule

4.

3.5 Operating Reserve—Spinning

Reserve Service: Where applicable the

rates and/or methodology are described

in Schedule 5.

3.6 Operating Reserve—

Supplemental Reserve Service: Where

applicable the rates and/or methodology

are described in Schedule 6.

4 Open Access Same-Time

Information System (OASIS)

Terms and conditions regarding Open

Access Same-Time Information System

and standards of conduct are set forth in

18 CFR 37 of the Commission’s

regulations (Open Access Same-Time

Information System and Standards of

Conduct for Public Utilities). In the

event available transmission capability

as posted on the OASIS is insufficient

to accommodate a request for firm

transmission service, additional studies

may be required as provided by this

Tariff pursuant to Sections 19 and 32.

5 Local Furnishing Bonds

5.1 Transmission Providers That Own

Facilities Financed by Local Furnishing

Bonds

This provision is applicable only to

Transmission Providers that have

financed facilities for the local

furnishing of electric energy with 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
536 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

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 Procedures

Within a reasonable time after the first

day of each month, the Transmission

Provider shall submit an invoice to the

Transmission Customer for the charges

for all services furnished under the

Tariff during the preceding month. The

invoice shall be paid by the

Transmission Customer within twenty

(20) days of receipt. All payments shall

be made in immediately available funds

payable to the Transmission Provider, or

by wire transfer to a bank named by the

Transmission Provider.

7.2 Interest on Unpaid Balances

Interest on any unpaid amounts

(including amounts placed in escrow)

shall be calculated in accordance with

the methodology specified for interest

on refunds in the Commission’s

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

Interest on delinquent amounts shall be

calculated from the due date of the bill

to the date of payment. When payments

are made by mail, bills shall be

considered as having been paid on the

date of receipt by the Transmission

Provider.

7.3 Customer Default

In the event the Transmission

Customer fails, for any reason other than

a billing dispute as described below, to

make payment to the Transmission

Provider on or before the due date as

described above, and such failure of

payment is not corrected within thirty

(30) calendar days after the

Transmission Provider notifies the

Transmission Customer to cure such

failure, a default by the Transmission

Customer shall be deemed to exist.

Within the same 30 calendar days after

notice of failure to make payment, the

Transmission Customer shall have the

right of appeal to the Administrator of

Western. The Transmission Provider

shall submit its recommendation to the

Administrator for review and approval,

but shall not terminate service until the

Administrator makes a determination on

the Transmission Customer’s appeal. In

the event of a billing dispute between

the Transmission Provider and the

Transmission Customer, the

Transmission Provider will continue to

provide service under the Service

Agreement as long as the Transmission

Customer (i) continues to make all

payments not in dispute, and (ii) pays

into an independent escrow account the

portion of the invoice in dispute,

pending resolution of such dispute. If

the Transmission Customer fails to meet

these two requirements for continuation

of service, then the Transmission

Provider may provide notice to the

Transmission Customer of its intention

to suspend service in sixty (60) days, in

accordance with Commission policy.

8 Accounting for the Transmission

Provider’s Use of the Tariff

The Transmission Provider shall

record the following amounts, as

outlined below.

8.1 Transmission Revenues

Include in a separate operating

revenue account or subaccount the

revenues it receives from Transmission

Service when making Third-Party Sales

under Part II of the Tariff.

8.2 Study Costs and Revenues

Include in a separate transmission

operating expense account or

subaccount, costs properly chargeable to

expense that are incurred to perform

any System Impact Studies or Facilities

Studies which the Transmission

Provider conducts to determine if it

must construct new transmission

facilities or upgrades necessary for its

own uses, including making Third-Party

Sales under the Tariff; and include in a

separate operating revenue account or

subaccount the revenues received for

System Impact Studies or Facilities

Studies performed when such amounts

are separately stated and identified in

the Transmission Customer’s billing

under the Tariff.

9 Regulatory Filings

Nothing contained in the Tariff or any

Service Agreement shall be construed as

affecting in any way the ability of any

Party receiving service under the Tariff

to exercise its rights under the Federal

Power Act and pursuant to the

Commission’s rules and regulations

promulgated thereunder.

10 Force Majeure and Indemnification

10.1 Force Majeure

An event of Force Majeure means any

act of God, labor disturbance, act of the

public enemy, war, insurrection, riot,

fire, storm or flood, explosion, breakage

or accident to machinery or equipment,

any Curtailment, order, regulation or

restriction imposed by governmental

military or lawfully established civilian

authorities, or any other cause beyond a

Party’s control. A Force Majeure event

does not include an act of negligence or

intentional wrongdoing. Neither the

Transmission Provider nor the

Transmission Customer will be

considered in default as to any

obligation under this Tariff if prevented

from fulfilling the obligation due to an

event of Force Majeure. However, a

Party whose performance under this

Tariff is hindered by an event of Force

Majeure shall make all reasonable

efforts to perform its obligations under

this Tariff.

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.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 537

11 Creditworthiness

For the purpose of determining the

ability of the Transmission Customer to

meet its obligations related to service

hereunder, the Transmission Provider

may require reasonable credit review

procedures. This review shall be made

in accordance with standard

commercial practices. In addition, the

Transmission Provider may require the

Transmission Customer to provide and

maintain in effect during the term of the

Service Agreement, an unconditional

and irrevocable letter of credit as

security to meet its responsibilities and

obligations under the Tariff, or an

alternative form of security proposed by

the Transmission Customer and

acceptable to the Transmission Provider

and consistent with commercial

practices established by the Uniform

Commercial Code that protects the

Transmission Provider against the risk

of non-payment.

12 Dispute Resolution Procedures

12.1 Internal Dispute Resolution

Procedures

Any dispute between a Transmission

Customer and the Transmission

Provider involving transmission service

under the Tariff shall be referred to a

designated senior representative of the

Transmission Provider and a senior

representative of the Transmission

Customer for resolution on an informal

basis as promptly as practicable. In the

event the designated representatives are

unable to resolve the dispute within

thirty (30) days (or such other period as

the Parties may agree upon) by mutual

agreement, such dispute may be

resolved in accordance with the

procedures set forth below.

12.2 External Dispute Resolution

Procedures

Any complaint arising concerning

implementation of this Tariff shall be

resolved as follows:

(a) Through a dispute resolution

process, pursuant to the terms of a

Regional Transmission Group governing

agreement of which both Parties are

members; or

(b) If both Parties are not members of

the same Regional Transmission Group,

through a dispute resolution process

agreed to by the Parties, or through a

transmission complaint filed with the

Commission to the extent the

Commission has jurisdiction over such

dispute.

12.3 Rights Under The Federal Power

Act

Nothing in this section shall restrict

the rights of any party to file a

Complaint with the Commission under

relevant provisions of the Federal Power

Act.

Part II. Point-to-Point Transmission

Service

Preamble

The Transmission Provider will

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

the applicable terms and conditions of

this Tariff. Point-To-Point Transmission

Service is for the receipt of capacity and

energy at designated Point(s) of Receipt

and the transmission of such capacity

and energy to designated Point(s) of

Delivery.

13 Nature of Firm Point-To-Point

Transmission Service

13.1 Term

The minimum term of Firm Point-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 Section 13.8)

from being notified by the Transmission

Provider of a longer-term competing

request for Short-Term Firm Point-ToPoint 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 Section 2.2.

13.3 Use of Firm Transmission Service

by the Transmission Provider

The Transmission Provider will be

subject to the rates, terms and

conditions of Part II of the Tariff when

making Third-Party Sales under

agreements executed on or after March

9, 1998. The Transmission Provider will

maintain separate accounting, pursuant

to Section 8, for any use of the PointTo-Point Transmission Service to make

Third-Party Sales.

13.4 Service Agreements

The Transmission Provider shall offer

a standard form Firm Point-To-Point

Transmission Service Agreement

(Attachment A) to an Eligible Customer

when it submits a Completed

Application for Long-Term Firm 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 Section

15.4. The Transmission Customer must

agree to compensate the Transmission

Provider in advance for any necessary

transmission facility additions pursuant

to the terms of Section 27. To the extent

the Transmission Provider can relieve

any system constraint more

economically by redispatching the

Transmission Provider’s resources than
538 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

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

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-To-Point

Transmission Service

Schedules for the Transmission

Customer’s Firm Point-To-Point

Transmission Service must be submitted

to the Transmission Provider no later

than 10:00 a.m. (or a reasonable time

that is generally accepted in the region

and is consistently adhered to by the

Transmission Provider) of the day prior

to commencement of such service.

Schedules submitted after 10:00 a.m.

will be accommodated, if practicable.

Hour-to-hour schedules of any capacity

and energy that is to be delivered must

be stated in increments of 1,000 kW per

hour (or a reasonable increment that is

generally accepted in the region and is

consistently adhered to by the

Transmission Provider). Transmission

Customers within the Transmission

Provider’s service area with multiple

requests for Transmission Service at a

Point of Receipt, each of which is under

1,000 kW per hour, may consolidate

their service requests at a common point

of receipt into units of 1,000 kW per

hour for scheduling and billing

purposes. Scheduling changes will be

permitted up to twenty (20) minutes (or

a reasonable time that is generally

accepted in the region and is

consistently adhered to by the

Transmission Provider) before the start

of the next clock hour provided that the

Delivering Party and Receiving Party

also agree to the schedule modification.

The Transmission Provider will furnish

to the Delivering Party’s system

operator, hour-to-hour schedules equal

to those furnished by the Receiving

Party (unless reduced for losses) and

shall deliver the capacity and energy

provided by such schedules. Should the

Transmission Customer, Delivering

Party or Receiving Party revise or

terminate any schedule, such party shall

immediately notify the Transmission

Provider, and the Transmission Provider

shall have the right to adjust

accordingly the schedule for capacity

and energy to be received and to be

delivered.

14 Nature of Non-Firm Point-To-Point

Transmission Service

14.1 Term

Non-Firm Point-To-Point

Transmission Service will be available

for periods ranging from one (1) hour to

one (1) month. However, a Purchaser of

Non-Firm Point-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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 539

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 March

9, 1998. The Transmission Provider will

maintain separate accounting, pursuant

to Section 8, for any use of Non-Firm

Point-To-Point Transmission Service to

make Third-Party Sales.

14.4 Service Agreements

The Transmission Provider shall offer

a standard form Non-Firm Point-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

basis, but not to exceed one month’s

reservation for any one Application

under Schedule 8.

14.6 Scheduling of Non-Firm PointTo-Point Transmission Service

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

submitted to the Transmission Provider

no later than 2:00 p.m. (or a reasonable

time that is generally accepted in the

region and is consistently adhered to by

the Transmission Provider) of the day

prior to commencement of such service.

Schedules submitted after 2:00 p.m. will

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

be delivered must be stated in

increments of 1,000 kW per hour (or a

reasonable increment that is generally

accepted in the region and is

consistently adhered to by the

Transmission Provider). Transmission

Customers within the Transmission

Provider’s service area with multiple

requests for Transmission Service at a

Point of Receipt, each of which is under

1,000 kW per hour, may consolidate

their schedules at a common Point of

Receipt into units of 1,000 kW per hour.

Scheduling changes will be permitted

up to twenty (20) minutes (or a

reasonable time that is generally

accepted in the region and is

consistently adhered to by the

Transmission Provider) before the start

of the next clock hour provided that the

Delivering Party and Receiving Party

also agree to the schedule modification.

The Transmission Provider will furnish

to the Delivering Party’s system

operator, hour-to-hour schedules equal

to those furnished by the Receiving

Party (unless reduced for losses) and

shall deliver the capacity and energy

provided by such schedules. Should the

Transmission Customer, Delivering

Party or Receiving Party revise or

terminate any schedule, such party shall

immediately notify the Transmission

Provider, and the Transmission Provider

shall have the right to adjust

accordingly the schedule for capacity

and energy to be received and to be

delivered.

14.7 Curtailment or Interruption of

Service

The Transmission Provider reserves

the right to Curtail, in whole or in part,

Non-Firm Point-To-Point Transmission

Service provided under the Tariff for

reliability reasons when, an emergency

or other unforeseen condition threatens

to impair or degrade the reliability of its

Transmission System. The Transmission

Provider reserves the right to Interrupt,

in whole or in part, Non-Firm Point-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
540 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

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 applicable Federal

law and regulations, and (ii) comply

with the terms and conditions of the

Tariff including paying the appropriate

processing fees in accordance with the

terms of Section 17.3. If the

Transmission Customer cannot accept

all of the terms and conditions of the

offered Service Agreement, the

Transmission Customer may request

resolution of the unacceptable terms

and conditions under Section 12,

Dispute Resolution Procedures, of the

Tariff. Any changes resulting from the

Dispute Resolution Procedures will be

effective upon the date of initial service.

15.4 Obligation to Provide

Transmission Service that Requires

Expansion or Modification of the

Transmission System

If the Transmission Provider

determines that it cannot accommodate

a Completed Application for Firm 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

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 PointTo-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 the appropriate Regional

Office, as identified in Attachment K to

the Tariff, at least sixty (60) days in

advance of the calendar month in which

service is to commence. The

Transmission Provider will consider

requests for such firm service on shorter

notice when feasible. Requests for firm
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 541

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 Federal law,

by regulatory or judicial order, for

reliability purposes pursuant to Good

Utility Practice or pursuant to RTG

transmission information sharing

agreements. The Transmission Provider

shall treat this information consistent

with the standards of conduct contained

in Part 37 of the Commission’s

regulations;

(v) A description of the supply

characteristics of the capacity and

energy to be delivered;

(vi) An estimate of the capacity and

energy expected to be delivered to the

Receiving Party;

(vii) The Service Commencement Date

and the term of the requested

Transmission Service;

(viii) The transmission capacity

requested for each Point of Receipt and

each Point of Delivery on the

Transmission Provider’s Transmission

System; customers may combine their

requests for service in order to satisfy

the minimum transmission capacity

requirement;

The Transmission Provider shall treat

this information consistent with the

standards of conduct contained in Part

37 of the Commission’s regulations.

17.3 Processing Fee

A Completed Application for Firm

Point-To-Point Transmission Service

also shall include a non-refundable

processing fee. Such fee shall be

applicable to all Transmission

Customers for firm Transmission

Service requests of one year or longer.

Individual Transmission Provider

processing fees will be calculated using

the number of estimated hours it will

take to process an application and will

be set forth in Attachment K. This fee

does not apply to costs to complete

System Impact Studies or Facility

Studies or to add new facilities.

17.4 Notice of Deficient Application

If an Application fails to meet the

requirements of the Tariff, the

Transmission Provider shall notify the

entity requesting service within fifteen

(15) days of receipt of the reasons for

such failure. The Transmission Provider

will attempt to remedy minor

deficiencies in the Application through

informal communications with the

Eligible Customer. If such efforts are

unsuccessful, the Transmission Provider

shall return the Application. Upon

receipt of a new or revised Application

that fully complies with the

requirements of Part II of the Tariff, the

Eligible Customer shall be assigned a

new priority consistent with the date of

the new or revised Application.

17.5 Response to a Completed

Application

Following receipt of a Completed

Application for Firm Point-To-Point

Transmission Service, the Transmission

Provider shall make a determination of

available transmission capability as

required in Section 15.2. The

Transmission Provider shall notify the

Eligible Customer as soon as practicable,

but not later than thirty (30) days after

the date of receipt of a Completed

Application either (i) if it will be able

to provide service without performing a

System Impact Study or (ii) if such a

study is needed to evaluate the impact

of the Application pursuant to Section

19.1. Responses by the Transmission

Provider must be made as soon as

practicable to all completed

applications (including applications by

its own merchant function) and the

timing of such responses must be made

on a non-discriminatory basis.

17.6 Execution of a Service Agreement

Whenever the Transmission Provider

determines that a System Impact Study

is not required and that the service can

be provided, it shall notify the Eligible

Customer as soon as practicable but no

later than thirty (30) days after receipt

of the Completed Application. Where a

System Impact Study is required, the

provisions of Section 19 will govern the

execution of a Service Agreement.

Failure of an Eligible Customer to

execute and return the Service

Agreement or request service without an

executed Service Agreement pursuant to

Section 15.3, within fifteen (15) days

after it is tendered by the Transmission

Provider will be deemed a withdrawal

and termination of the Application.

Nothing herein limits the right of an

Eligible Customer to file another

Application after such withdrawal and

termination.

17.7 Extensions for Commencement of

Service

The Transmission Customer can

obtain up to five (5) one-year extensions

for the commencement of service. The

Transmission Customer may postpone

service by paying a non-refundable

annual reservation fee equal to 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
542 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Transmission Provider’s OASIS, a

Completed Application may be

submitted by (i) transmitting the

required information to the

Transmission Provider by telefax, or (ii)

providing the information by telephone

over the Transmission Provider’s time

recorded telephone line. Each of these

methods will provide a time-stamped

record for establishing the service

priority of the Application.

18.2 Completed Application

A Completed Application shall

provide all of the information included

in 18 CFR § 2.20 including but not

limited to the following:

(i) The identity, address, telephone

number and facsimile number of the

entity requesting service;

(ii) A statement that the entity

requesting service is, or will be upon

commencement of service, an Eligible

Customer under the Tariff;

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

Point(s) of Delivery;

(iv) The maximum amount of capacity

requested at each Point of Receipt and

Point of Delivery; and

(v) The proposed dates and hours for

initiating and terminating transmission

service hereunder.

In addition to the information

specified above, when required to

properly evaluate system conditions, the

Transmission Provider also may ask the

Transmission Customer to provide the

following:

(vi) The electrical location of the

initial source of the power to be

transmitted pursuant to the

Transmission Customer’s request for

service;

(vii) The electrical location of the

ultimate load.

The Transmission Provider will treat

this information in (vi) and (vii) as

confidential at the request of the

Transmission Customer except to the

extent that disclosure of this

information is required by this Tariff, by

Federal Law, by regulatory or judicial

order, for reliability purposes pursuant

to Good Utility Practice, or pursuant to

RTG transmission information sharing

agreements. The Transmission Provider

shall treat this information consistent

with the standards of conduct contained

in Part 37 of the Commission’s

regulations.

18.3 Reservation of Non-Firm PointTo-Point Transmission Service

Requests for monthly service shall be

submitted no earlier than sixty (60) days

before service is to commence; requests

for weekly service shall be submitted no

earlier than fourteen (14) days before

service is to commence, requests for

daily service shall be submitted no

earlier than two (2) days before service

is to commence, and requests for hourly

service shall be submitted no earlier

than noon the day before service is to

commence. Requests for service

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

day service is scheduled to commence

will be accommodated if practicable [or

such reasonable times that are generally

accepted in the region and are

consistently adhered to by the

Transmission Provider].

18.4 Determination of Available

Transmission Capability

Following receipt of a tendered

schedule the Transmission Provider will

make a determination on a nondiscriminatory basis of available

transmission capability pursuant to

Section 15.2. Such determination shall

be made as soon as reasonably

practicable after receipt, but not later

than the following time periods for the

following terms of service (i) thirty (30)

minutes for hourly service, (ii) thirty

(30) minutes for daily service, (iii) four

(4) hours for weekly service, and (iv)

two (2) days for monthly service. [Or

such reasonable times that are generally

accepted in the region and are

consistently adhered to by the

Transmission Provider].

19 Additional Study Procedures For

Firm Point-To-Point Transmission

Service Requests

19.1 Notice of Need for System Impact

Study

After receiving a request for service,

the Transmission Provider shall

determine on a 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.

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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 543

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 Transmission

Customer’s share of the costs of new

facilities or upgrades. The Transmission

Customer shall have thirty (30) days to

execute a construction agreement and a

Service Agreement and provide the

advance payment or request service

without an executed Service Agreement

pursuant to Section 15.3 and pay the

Transmission Customer’s share of the

costs or the request will no longer be a

Completed Application and shall be

deemed terminated and withdrawn.

Any advance payment made by the

Transmission Customer that is in excess

of the costs incurred by the

Transmission Provider shall be

refunded.

19.5 Facilities Study Modifications

Any change in design arising from

inability to site or construct facilities as

proposed will require development of a

revised good faith estimate. New good

faith estimates also will be required in

the event of new statutory or regulatory

requirements that are effective before

the completion of construction or other

circumstances beyond the control of the

Transmission Provider that significantly

affect the final cost of new facilities or

upgrades to be charged to the

Transmission Customer pursuant to the

provisions of Part II of the Tariff.

19.6 Due Diligence in Completing New

Facilities

The Transmission Provider shall use

due diligence to add necessary facilities

or upgrade its Transmission System

within a reasonable time. The

Transmission Provider will not upgrade

its existing or planned Transmission

System in order to provide the

requested Firm Point-To-Point

Transmission Service if doing so would

impair system reliability or otherwise

impair or degrade existing firm service.

19.7 Partial Interim Service

If the Transmission Provider

determines that it will not have

adequate transmission capability to

satisfy the full amount of a Completed

Application for Firm Point-To-Point

Transmission Service, the Transmission

Provider nonetheless shall be obligated

to offer and provide the portion of the

requested Firm Point-To-Point

Transmission Service that can be

accommodated without addition of any

facilities and through redispatch.

However, the Transmission Provider

shall not be obligated to provide the

incremental amount of requested Firm

Point-To-Point Transmission Service

that requires the addition of facilities or

upgrades to the Transmission System

until such facilities or upgrades have

been placed in service.

19.8 Expedited Procedures for New

Facilities

In lieu of the procedures set forth

above, the Eligible Customer shall have

the option to expedite the process by

requesting the Transmission Provider to

tender at one time, together with the

results of required studies, an

‘‘Expedited Service Agreement’’

pursuant to which the Eligible Customer

would agree to compensate the

Transmission Provider in advance for

all costs incurred pursuant to the terms

of the Tariff. In order to exercise this

option, the Eligible Customer shall

request in writing an expedited Service

Agreement covering all of the 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.
544 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

20.2 Alternatives to the Original

Facility Additions

When the review process of Section

20.1 determines that one or more

alternatives exist to the originally

planned construction project, the

Transmission Provider shall present

such alternatives for consideration by

the Transmission Customer. If, upon

review of any alternatives, the

Transmission Customer desires to

maintain its Completed Application

subject to construction of the alternative

facilities, it may request the

Transmission Provider to submit a

revised Service Agreement for Firm

Point-To-Point Transmission Service. If

the alternative approach solely involves

Non-Firm Point-To-Point Transmission

Service, the Transmission Provider shall

promptly tender a Service Agreement

for Non-Firm Point-To-Point

Transmission Service providing for the

service. In the event the Transmission

Provider concludes that no reasonable

alternative exists and the Transmission

Customer disagrees, the Transmission

Customer may seek relief under the

dispute resolution procedures pursuant

to Section 12 or it may refer the dispute

to the Commission for resolution.

20.3 Refund Obligation for Unfinished

Facility Additions

If the Transmission Provider and the

Transmission Customer mutually agree

that no other reasonable alternatives

exist and the requested service cannot

be provided out of existing capability

under the conditions of Part II of the

Tariff, the obligation to provide the

requested Firm Point-To-Point

Transmission Service shall terminate

and any advance payment made by the

Transmission Customer that is in excess

of the costs incurred by the

Transmission Provider through the time

construction was suspended shall be

returned. However, the Transmission

Customer shall be responsible for all

prudently incurred costs by the

Transmission Provider through the time

construction was suspended.

21 Provisions Relating to Transmission

Construction and Services on the

Systems of Other Utilities

21.1 Responsibility for Third-Party

System Additions

The Transmission Provider shall not

be responsible for making arrangements

for any necessary engineering,

permitting, and construction of

transmission or distribution facilities on

the system(s) of any other entity or for

obtaining any regulatory approval for

such facilities. The Transmission

Provider will undertake reasonable

efforts to assist the Transmission

Customer in obtaining such

arrangements, including without

limitation, providing any information or

data required by such other electric

system pursuant to Good Utility

Practice.

21.2 Coordination of Third-Party

System Additions

In circumstances where the need for

transmission facilities or upgrades is

identified pursuant to the provisions of

Part II of the Tariff, and if such upgrades

further require the addition of

transmission facilities on other systems,

the Transmission Provider shall have

the right to coordinate construction on

its own system with the construction

required by others. The Transmission

Provider, after consultation with the

Transmission Customer and

representatives of such other systems,

may defer construction of its new

transmission facilities, if the new

transmission facilities on another

system cannot be completed in a timely

manner. The Transmission Provider

shall notify the Transmission Customer

in writing of the basis for any decision

to defer construction and the specific

problems which must be resolved before

it will initiate or resume construction of

new facilities. Within sixty (60) days of

receiving written notification by the

Transmission Provider of its intent to

defer construction pursuant to this

section, the Transmission Customer may

challenge the decision in accordance

with the dispute resolution procedures

pursuant to Section 12 or it may refer

the dispute to the Commission for

resolution.

22 Changes in Service Specifications

22.1 Modifications On a Non-Firm

Basis

The Transmission Customer taking

Firm Point-To-Point Transmission

Service may request the Transmission

Provider to provide transmission service

on a non-firm basis over Receipt and

Delivery Points other than those

specified in the Service Agreement

(‘‘Secondary Receipt and Delivery

Points’’), in amounts not to exceed its

firm capacity reservation, without

incurring an additional Non-Firm 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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 545

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

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
546 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Transmission Provider shall include the

Network Customer’s Network Load in

its Transmission System planning and

shall, consistent with Good Utility

Practice, endeavor to construct and

place into service sufficient

transmission capacity to deliver the

Network Customer’s Network Resources

to serve its Network Load on a basis

comparable to the Transmission

Provider’s delivery of its own generating

and purchased resources to its Native

Load Customers. This obligation to

construct and place into service

sufficient transmission capacity to

deliver the Network Customer’s

Network Resources to serve its Network

Load is contingent upon the availability

to Western of sufficient appropriations,

when needed, and the Transmission

Customer’s advanced funds.

28.3 Network Integration Transmission

Service

The Transmission Provider will

provide firm transmission service over

its Transmission System to the 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, or

requests in writing that the

Transmission Provider provide service

without an executed Network Operating

Agreement. If the Transmission Provider

and the Network Customer cannot agree

on all the terms and conditions of the

Network Service Agreement, the

Transmission Provider shall commence

providing Network Integration

Transmission Service subject to the

Network Customer agreeing to (i)

compensate the Transmission Provider

at the existing rate placed in effect

pursuant to applicable Federal law and

regulations, and (ii) comply with the

terms and conditions of the Tariff

including paying the appropriate

processing fees in accordance with the

terms of Section 29.2. If the Network

Customer cannot accept all of the terms

and conditions of the offered Service

Agreement, the Network Customer may

request resolution of the unacceptable

terms and conditions under Section 12,

Dispute Resolution Procedures, of the

Tariff. Any changes resulting from the

Dispute Resolution Procedures will be

effective upon the date of initial service.

29.2 Application Procedures

An Eligible Customer requesting

service under Part III of the Tariff must

submit an Application to the

Transmission Provider as far as possible

in advance of the month in which

service is to commence. Unless subject

to the procedures in Section 2,

Completed Applications for Network

Integration Transmission Service will be

assigned a priority according to the date

and time the Application is received,

with the earliest Application receiving

the highest priority. Applications

should be submitted by entering the

information listed below on the

Transmission Provider’s OASIS. Prior to

implementation of the Transmission

Provider’s OASIS, a Completed

Application may be submitted by (i)

transmitting the required information to

the Transmission Provider by telefax, or

(ii) providing the information by

telephone over the Transmission

Provider’s time recorded telephone line.

Each of these methods will provide a

time-stamped record for establishing the

service priority of the Application. A

Completed Application for Network

Integration Transmission Service also

shall include a non-refundable

processing fee. Such fee shall be

applicable to all Transmission

Customers for firm Transmission

Service requests of one year or longer.

Individual Transmission Provider

processing fees will be calculated using

the number of estimated hours it will

take to process an application and will

be set forth in Attachment K. This fee

does not apply to costs to complete

System Impact Studies or Facility

Studies or to add new facilities. A

Completed Application shall provide all

of the information included in 18 CFR

2.20 including but not limited to the

following:

(i) The identity, address, telephone

number and facsimile number of the

party requesting service;

(ii) A statement that the party

requesting service is, or will be upon

commencement of service, an Eligible

Customer under the Tariff;

(iii) A description of the Network

Load at each delivery point. This

description should separately identify

and provide the Eligible Customer’s best

estimate of the total loads to be served

at each transmission voltage level, and

the loads to be served from each

Transmission Provider substation at the

same transmission voltage level. The

description should include a ten (10)

year forecast of summer and winter load

and resource requirements beginning

with the first year after the service is

scheduled to commence;

(iv) The amount and location of any

interruptible loads included in the

Network Load. This shall include the

summer and winter capacity

requirements for each interruptible load

(had such load not been interruptible),

that portion of the load subject to

interruption, the conditions under
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 547

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.

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
548 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

condition which may impair or degrade

the reliability of the Transmission

System.

30.5 Network Customer Redispatch

Obligation

As a condition to receiving Network

Integration Transmission Service, the

Network Customer agrees to redispatch

its Network Resources as requested by

the Transmission Provider pursuant to

Section 33.2. To the extent practical, the

redispatch of resources pursuant to this

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

Network Customers, and the

Transmission Provider.

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With The Transmission

Provider

The Network Customer shall be

responsible for any arrangements

necessary to deliver capacity and energy

from a Network Resource not physically

interconnected with the Transmission

Provider’s Transmission System. The

Transmission Provider will undertake

reasonable efforts to assist the Network

Customer in obtaining such

arrangements, including without

limitation, providing any information or

data required by such other entity

pursuant to Good Utility Practice.

30.7 Limitation on Designation of

Network Resources

The Network Customer must

demonstrate that it owns or has

committed to purchase generation

pursuant to an executed contract in

order to designate a generating resource

as a Network Resource. Alternatively,

the Network Customer may establish

that execution of a contract is

contingent upon the availability of

transmission service under Part III of the

Tariff.

30.8 Use of Interface Capacity by the

Network Customer

There is no limitation upon a Network

Customer’s use of the Transmission

Provider’s Transmission System at any

particular interface to integrate the

Network Customer’s Network Resources

(or substitute economy purchases) with

its Network Loads. However, a Network

Customer’s use of the Transmission

Provider’s total interface capacity with

other transmission systems may not

exceed the Network Customer’s Load.

30.9 Network Customer Owned

Transmission Facilities

The Network Customer that owns

existing transmission facilities that are

integrated with the Transmission

Provider’s Transmission System may be

eligible to receive consideration either

through a billing credit or some other

mechanism. In order to receive such

consideration the Network Customer

must demonstrate that its transmission

facilities are integrated into the plans or

operations of the Transmission Provider

to serve its power and transmission

customers. For facilities constructed by

the Network Customer subsequent to the

Service Commencement Date under Part

III of the Tariff, the Network Customer

shall receive credit where such facilities

are jointly planned and installed in

coordination with the Transmission

Provider. Calculation of the credit shall

be addressed in either the Network

Customer’s Service Agreement or any

other agreement between the Parties.

31 Designation of Network Load

31.1 Network Load

The Network Customer must

designate the individual Network Loads

on whose behalf the Transmission

Provider will provide Network

Integration Transmission Service. The

Network Loads shall be specified in the

Service Agreement.

31.2 New Network Loads Connected

With the Transmission Provider

The Network Customer shall provide

the Transmission Provider with as much

advance notice as reasonably practicable

of the designation of new Network Load

that will be added to its Transmission

System. A designation of new Network

Load must be made through a

modification of service pursuant to a

new Application. The Transmission

Provider will use due diligence to

install any transmission facilities

required to interconnect a new Network

Load designated by the Network

Customer. The costs of new facilities

required to interconnect a new Network

Load shall be determined in accordance

with the procedures provided in Section

32.4 and shall be charged to the

Network Customer in accordance with

Commission policies.

31.3 Network Load Not Physically

Interconnected with the Transmission

Provider

This section applies to both initial

designation pursuant to Section 31.1

and the subsequent addition of new

Network Load not physically

interconnected with the Transmission

Provider. To the extent that the Network

Customer desires to obtain transmission

service for a load outside the

Transmission Provider’s Transmission

System, the Network Customer shall

have the option of (1) electing to include

the entire load as Network Load for all

purposes under Part III of the Tariff and

designating Network Resources in

connection with such additional

Network Load, or (2) excluding that

entire load from its Network Load and

purchasing Point-To-Point Transmission

Service under Part II of the Tariff. To the

extent that the Network Customer gives

notice of its intent to add a new

Network Load as part of its Network

Load pursuant to this section the

request must be made through a

modification of service pursuant to a

new Application.

31.4 New Interconnection Points

To the extent the Network Customer

desires to add a new Delivery Point or

interconnection point between the

Transmission Provider’s Transmission

System and a Network Load, the

Network Customer shall provide the

Transmission Provider with as much

advance notice as reasonably

practicable.

31.5 Changes in Service Requests

Under no circumstances shall the

Network Customer’s decision to cancel

or delay a requested change in Network

Integration Transmission Service (e.g.

the addition of a new Network Resource

or designation of a new Network Load)

in any way relieve the Network

Customer of its obligation to pay the

costs of transmission facilities

constructed by the Transmission

Provider and charged to the Network

Customer as reflected in the Service

Agreement. However, the Transmission

Provider must treat any requested

change in Network Integration

Transmission Service in a 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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 549

written notice of material changes in

any other information provided in its

Application relating to the Network

Customer’s Network Load, Network

Resources, its transmission system or

other aspects of its facilities or

operations affecting the Transmission

Provider’s ability to provide reliable

service.

32 Additional Study Procedures for

Network Integration Transmission

Service Requests

32.1 Notice of Need for System Impact

Study

After receiving a request for service,

the Transmission Provider shall

determine on a non-discriminatory basis

whether a System Impact Study is

needed. A description of the

Transmission Provider’s methodology

for completing a System Impact Study is

provided in Attachment D. If the

Transmission Provider determines that a

System Impact Study is necessary to

accommodate the requested service, it

shall so inform the Eligible Customer, as

soon as practicable. In such cases, the

Transmission Provider shall within

thirty (30) days of receipt of a

Completed Application, tender a System

Impact Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

System Impact Study. For a service

request to remain a Completed

Application, the Eligible Customer shall

execute the System Impact Study

Agreement and return it to the

Transmission Provider within fifteen

(15) days. If the Eligible Customer elects

not to execute the System Impact Study

Agreement, its Application shall be

deemed withdrawn.

32.2 System Impact Study Agreement

and Compensation

(i) The System Impact Study

Agreement will clearly specify the

Transmission Provider’s estimate of the

actual cost, and time for completion of

the System Impact Study. The charge

shall not exceed the actual cost of the

study. In performing the System Impact

Study, the Transmission Provider shall

rely, to the extent reasonably

practicable, on existing transmission

planning studies. The Eligible Customer

will not be assessed a charge for such

existing studies; however, the Eligible

Customer will be responsible for charges

associated with any modifications to

existing planning studies that are

reasonably necessary to evaluate the

impact of the Eligible Customer’s

request for service on the Transmission

System.

(ii) If in response to multiple Eligible

Customers requesting service in relation

to the same competitive solicitation, a

single System Impact Study is sufficient

for the Transmission Provider to

accommodate the service requests, the

costs of that study shall be pro-rated

among the Eligible Customers.

(iii) For System Impact Studies that

the Transmission Provider conducts on

its own behalf, the Transmission

Provider shall record the cost of the

System Impact Studies pursuant to

Section 8.

32.3 System Impact Study Procedures

Upon receipt of an executed System

Impact Study Agreement, the

Transmission Provider will use due

diligence to complete the required

System Impact Study within a sixty (60)

day period. The System Impact Study

shall identify any system constraints

and redispatch options, additional

Direct Assignment Facilities or Network

Upgrades required to provide the

requested service. In the event that the

Transmission Provider is unable to

complete the required System Impact

Study within such time period, it shall

so notify the Eligible Customer and

provide an estimated completion date

along with an explanation of the reasons

why additional time is required to

complete the required studies. A copy of

the completed System Impact Study and

related work papers shall be made

available to the Eligible Customer. The

Transmission Provider will use the

same due diligence in completing the

System Impact Study for an Eligible

Customer as it uses when completing

studies for itself. The Transmission

Provider shall notify the Eligible

Customer immediately upon completion

of the System Impact Study if the

Transmission System will be adequate

to accommodate all or part of a request

for service or that no costs are likely to

be incurred for new transmission

facilities or upgrades. In order for a

request to remain a Completed

Application, within fifteen (15) days of

completion of the System Impact Study

the Eligible Customer must execute a

Service Agreement or request service

without an executed Service Agreement

pursuant to Section 29.1, or the

Application shall be deemed terminated

and withdrawn.

32.4 Facilities Study Procedures

If a System Impact Study indicates

that additions or upgrades to the

Transmission System are needed to

supply the Eligible Customer’s service

request, the Transmission Provider,

within thirty (30) days of the

completion of the System Impact Study,

shall tender to the Eligible Customer a

Facilities Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

Facilities Study. For a service request to

remain a Completed Application, the

Eligible Customer shall execute the

Facilities Study Agreement and return it

to the Transmission Provider within

fifteen (15) days. If the Eligible

Customer elects not to execute the

Facilities Study Agreement, its

Application shall be deemed

withdrawn. Upon receipt of an executed

Facilities Study Agreement, the

Transmission Provider will use due

diligence to complete the required

Facilities Study within a sixty (60) day

period. If the Transmission Provider is

unable to complete the Facilities Study

in the allotted time period, the

Transmission Provider shall notify the

Eligible Customer and provide an

estimate of the time needed to reach a

final determination along with an

explanation of the reasons that

additional time is required to complete

the study. When completed, the

Facilities Study will include a good

faith estimate of (i) the cost of Direct

Assignment Facilities to be charged to

the Eligible Customer, (ii) the Eligible

Customer’s appropriate share of the cost

of any required Network Upgrades, and

(iii) the time required to complete such

construction and initiate the requested

service. The Eligible Customer shall

advance funds to the Transmission

Provider for the construction of new

facilities and such advance and

construction shall be provided for in a

separate agreement. If the construction

of new facilities requires the

expenditure of Transmission Provider

funds, such construction shall be

contingent upon the availability of

appropriated funds. The Eligible

Customer shall have thirty (30) days to

execute a construction agreement and a

Service Agreement and provide the

advance payment or request service

without an executed Service Agreement

pursuant to Section 29.1 and pay the

Transmission Customer’s share of the

costs or the request no longer will be a

Completed Application and shall be

deemed terminated and withdrawn.

Any advance payment made by the

Transmission Customer that is in excess

of the costs incurred by the

Transmission Provider shall be

refunded.

33 Load Shedding and Curtailments

33.1 Procedures

Prior to the Service Commencement

Date, the Transmission Provider and the
550 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Network Customer shall establish Load

Shedding and Curtailment procedures

pursuant to the Network Operating

Agreement with the objective of

responding to contingencies on the

Transmission System. The Parties will

implement such programs during any

period when the Transmission Provider

determines that a system contingency

exists and such procedures are

necessary to alleviate such contingency.

The Transmission Provider will notify

all affected Network Customers in a

timely manner of any scheduled

Curtailment.

33.2 Transmission Constraints

During any period when the

Transmission Provider determines that a

transmission constraint exists on the

Transmission System, and such

constraint may impair the reliability of

the Transmission Provider’s system, the

Transmission Provider will take

whatever actions, consistent with Good

Utility Practice, that are reasonably

necessary to maintain the reliability of

the Transmission Provider’s system. To

the extent the Transmission Provider

determines that the reliability of the

Transmission System can be maintained

by redispatching resources, the

Transmission Provider will initiate

procedures pursuant to the Network

Operating Agreement to redispatch all

Network Resources and the

Transmission Provider’s own resources

on a least-cost basis without regard to

the ownership of such resources. Any

redispatch under this section may not

unduly discriminate between the

Transmission Provider’s use of the

Transmission System on behalf of its

Native Load Customers and any

Network Customer’s use of the

Transmission System to serve its

designated Network Load.

33.3 Cost Responsibility for Relieving

Transmission Constraints

Whenever the Transmission Provider

implements least-cost redispatch

procedures in response to a

transmission constraint, the

Transmission Provider and Network

Customers will each bear a

proportionate share of the total

redispatch cost based on their respective

Load Ratio Shares.

33.4 Curtailments of Scheduled

Deliveries

If a transmission constraint on the

Transmission Provider’s Transmission

System cannot be relieved through the

implementation of least-cost redispatch

procedures and the Transmission

Provider determines that it is necessary

to Curtail scheduled deliveries, the

Parties shall Curtail such schedules in

accordance with the Network Operating

Agreement.

33.5 Allocation of Curtailments

The Transmission Provider shall, on a

non-discriminatory basis, Curtail the

transaction(s) that effectively relieve the

constraint. However, to the extent

practicable and consistent with Good

Utility Practice, any Curtailment will be

shared by the Transmission Provider

and Network Customer in proportion to

their respective Load Ratio Shares. The

Transmission Provider shall not direct

the Network Customer to Curtail

schedules to an extent greater than the

Transmission Provider would Curtail

the Transmission Provider’s schedules

under similar circumstances.

33.6 Load Shedding

To the extent that a system

contingency exists on the Transmission

Provider’s Transmission System and the

Transmission Provider determines that

it is necessary for the Transmission

Provider and the Network Customer to

shed load, the Parties shall shed load in

accordance with previously established

procedures under the Network

Operating Agreement.

33.7 System Reliability

Notwithstanding any other provisions

of this Tariff, the Transmission Provider

reserves the right, consistent with Good

Utility Practice and on a not unduly

discriminatory basis, to Curtail Network

Integration Transmission Service

without liability on the Transmission

Provider’s part for the purpose of

making necessary adjustments to,

changes in, or repairs on its lines,

substations and facilities, and in cases

where the continuance of Network

Integration Transmission Service would

endanger persons or property. In the

event of any adverse condition(s) or

disturbance(s) on the Transmission

Provider’s Transmission System or on

any other system(s) directly or

indirectly interconnected with the

Transmission Provider’s Transmission

System, the Transmission Provider,

consistent with Good Utility Practice,

also may Curtail Network Integration

Transmission Service in order to (i)

limit the extent or damage of the

adverse condition(s) or disturbance(s),

(ii) prevent damage to generating or

transmission facilities, or (iii) expedite

restoration of service. The Transmission

Provider will give the Network

Customer as much advance notice as is

practicable in the event of such

Curtailment. Any Curtailment of

Network Integration Transmission

Service will be not unduly

discriminatory relative to the

Transmission Provider’s use of the

Transmission System on behalf of its

Native Load Customers. The

Transmission Provider shall specify the

rate treatment and all related terms and

conditions applicable in the event that

the Network Customer fails to respond

to established Load Shedding and

Curtailment procedures.

34 Rates and Charges

The Network Customer shall pay the

Transmission Provider for any Direct

Assignment Facilities, Ancillary

Services, and applicable study costs,

consistent with Federal 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.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 551

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 Transmission System specific

charges for Scheduling, System Control

and Dispatch Service are set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

The Transmission Provider may

modify the charges for Scheduling,

System Control and Dispatch Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Scheduling, System Control and

Dispatch Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 2

Reactive Supply and Voltage Control

From Generation Sources Service

In order to maintain transmission

voltages on the Transmission Provider’s

transmission facilities within acceptable

limits, generation facilities under the

control of the Control Area operator are

operated to produce or absorb reactive

power. Thus, Reactive Supply and

Voltage Control from Generation

Sources Service must be provided for

each transaction on the Transmission

Provider’s transmission facilities. The

amount of Reactive Supply and Voltage

Control from Generation Sources

Service that must be supplied with

respect to the Transmission Customer’s

transaction will be determined based on

the reactive power support necessary to

maintain transmission voltages within

limits that are generally accepted in the

region and consistently adhered to by

the Transmission Provider.

Reactive Supply and Voltage Control

from Generation Sources Service can be

provided directly by the Transmission

Provider if the Transmission Provider is

the Control Area operator or indirectly

by the Transmission Provider making

arrangements with the Control Area

operator that performs this service for

the Transmission Provider’s

Transmission System. The Transmission

Customer must purchase this service

from the Transmission Provider or the

Control Area operator. The charges for

such service will be based upon the

rates referred to below. To the extent the

Control Area operator performs this

service for the Transmission Provider,

charges to the Transmission Customer

are to reflect only a pass-through of the

costs charged to the Transmission

Provider by the Control Area Operator.

The Transmission System specific

charges for Reactive Supply and Voltage

Control from Generation Sources

Service are set forth in the appropriate

rate schedule attached to and made part

of the applicable Service Agreement.

The rates or rate methodology used to

calculate the charges for service under

this schedule were promulgated and

may be modified pursuant to applicable

Federal laws, regulations and policies.
552 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

The Transmission Provider may

modify the charges for Reactive Supply

and Voltage Control from Generation

Sources Service upon written notice to

the Transmission Customer. Any change

to the charges to the Transmission

Customer for Reactive Supply and

Voltage Control from Generation

Sources Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 3

Regulation and Frequency Response

Service

Regulation and Frequency Response

Service is necessary to provide for the

continuous balancing of resources,

generation and interchange, with load

and for maintaining scheduled

interconnection frequency at sixty

cycles per second (60 Hz). Regulation

and Frequency Response Service is

accomplished by committing on-line

generation whose output is raised or

lowered, predominantly through the use

of automatic generating control

equipment, as necessary to follow the

moment-by-moment changes in load.

The obligation to maintain this balance

between resources and load lies with

the Transmission Provider (or the

Control Area operator that performs this

function for the Transmission Provider).

The Transmission Provider must offer

this service when the transmission

service is used to serve load within its

Control Area. The Transmission

Customer must either purchase this

service from the Transmission Provider

or make alternative comparable

arrangements to satisfy its Regulation

and Frequency Response Service

obligation. The charges for Regulation

and Frequency Response Service are

referred to below. The amount of

Regulation and Frequency Response

Service will be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission System specific

charges for Regulation and Frequency

Response Service are set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

The Transmission Provider may

modify the charges for Regulation and

Frequency Response Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Regulation and Frequency Response

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 4

Energy Imbalance Service

Energy Imbalance Service is provided

when a difference occurs between the

scheduled and the actual delivery of

energy to a load located within a

Control Area over a single hour. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either obtain this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Energy Imbalance Service

obligation. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission Provider shall

establish a deviation band of +/¥1.5

percent (with a minimum of 2 MW) of

the scheduled transaction to be applied

hourly to any energy imbalance that

occurs as a result of the Transmission

Customer’s scheduled transaction(s).

Parties should attempt to eliminate

energy imbalances within the limits of

the deviation band within thirty (30)

days or within such other reasonable

period of time as is generally accepted

in the region and consistently adhered

to by the Transmission Provider. If an

energy imbalance is not corrected

within thirty (30) days or a reasonable

period of time that is generally accepted

in the region and consistently adhered

to by the Transmission Provider, the

Transmission Customer will

compensate the Transmission Provider

for such service. Energy imbalances

outside the deviation band will be

subject to charges to be specified by the

Transmission Provider. Compensation

for Energy Imbalance Service will be as

set forth below.

The Transmission System specific

compensation for Energy Imbalance

Service 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 applicable

Federal laws, regulations and policies

and attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 5

Opeating Reserve—Spinning Reserve

Service

Spinning Reserve Service is needed to

serve load immediately in the event of

a system contingency. Spinning Reserve

Service may be provided by generating

units that are on-line and loaded at less

than maximum output. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Spinning Reserve Service

obligation. The charges for Spinning

Reserve Service are referred to below.

The amount of Spinning Reserve

Service will be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission System specific

charges for Operating Reserve—

Spinning Reserve Service are set forth in

the appropriate rate schedule attached

to and made part of the applicable

Service Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 553

The Transmission Provider may

modify the charges for Operating

Reserve—Spinning Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Spinning Reserve

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 6

Operating Reserve—Supplemental

Reserve Service

Supplemental Reserve Service is

needed to serve load in the event of a

system contingency; however, it is not

available immediately to serve load but

rather within a short period of time.

Supplemental Reserve Service may be

provided by generating units that are

on-line but unloaded, by quick-start

generation or by interruptible load. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Supplemental Reserve Service

obligation. The charges for

Supplemental Reserve Service are

referred to below. The amount of

Supplemental Reserve Service will be

set forth in the Service Agreement. To

the extent the Control Area operator

performs this service for the

Transmission Provider, charges to the

Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission System specific

charges for Operating Reserve—

Supplemental Reserve Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations and policies.

The Transmission Provider may

modify the charges for Operating

Reserve—Supplemental Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Supplemental

Reserve Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 7

Long-Term Firm and Short-Term Firm

Point-to-Point Transmission Service

The Transmission Customer shall

compensate the Transmission Provider

each month for Reserved Capacity

pursuant to the Transmission System

specific Firm Point-to-Point

Transmission Service Rate Schedule

attached to and made a part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations and policies.

The Transmission Provider may

modify the charges for Firm Point-toPoint Transmission Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for Firm

Point-to-Point Transmission Service

shall be as set forth in a subsequent rate

schedule promulgated pursuant to

applicable Federal laws, regulations and

policies and attached to and made part

of the applicable Service Agreement.

The Transmission Provider shall charge

the Transmission Customer in

accordance with the rate then in effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts, including requests for use by

one’s wholesale merchant or an

affiliate’s use, must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from Point(s) of Receipt to

Point(s) of Delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Schedule 8

Non-Firm Point-To-Point Transmission

Service

The Transmission Customer shall

compensate the Transmission Provider

for Non-Firm Point-to-Point

Transmission Service pursuant to the

Transmission System specific Non-Firm

Point-to-Point Transmission Service

Rate Schedule attached to and made a

part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies.

The Transmission Provider may

modify the charges for Non-Firm Pointto-Point Transmission Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for NonFirm Point-to-Point Transmission

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to applicable Federal laws,

regulations and policies and attached to

and made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts, including requests for use by

one’s wholesale merchant or an

affiliate’s use, must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from Point(s) of Receipt to

Point(s) of Delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Attachment A

Form of Service Agreement for Firm

Point-To-Point Transmission Service

1.0 This Service Agreement, dated as of

llllll, is entered into, by and between

the (Region) of Western Area Power

Administration (Transmission Provider), and

lllll (Transmission Customer). The

Transmission Provider may revise charges or

losses for Firm Point-to-Point Transmission

Service provided under this Service
554 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Agreement pursuant to applicable Federal

Laws, regulations and policies upon written

notice to the Transmission Customer.

2.0 The Transmission Customer has been

determined by the Transmission Provider to

have a Completed Application for Firm

Point-To-Point Transmission Service under

the Tariff.

3.0 The Transmission Customer has

provided to the Transmission Provider a

nonrefundable Application processing fee in

accordance with the provisions of Section

17.3 of the Tariff.

4.0 Service under this agreement shall

commence on the later of (1) the requested

Service Commencement Date, or (2) the date

on which construction of any Direct

Assignment Facilities and/or Network

Upgrades are completed, or (3) such other

date as is mutually agreed. Service under this

agreement shall terminate on lllll.

5.0 The Transmission Provider agrees to

provide and the Transmission Customer

agrees to take and pay for Firm Point-ToPoint Transmission Service in accordance

with the provisions of Part II of the Tariff,

and this Service Agreement.

6.0 Any notice or request made to or by

either Party regarding this Service Agreement

shall be made to the representative of the

other Party as indicated below.

Transmission Provider:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

7.0 The Tariff and the ‘‘Specifications For

Long-Term Firm Point-To-Point’’ as presently

constituted or as they may be revised or

superseded are incorporated herein and

made a part hereof.

In Witness Whereof, the Parties have

caused this Service Agreement to be executed

by their respective authorized officials.

WESTERN AREA POWER

ADMINISTRATION

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Specifications for Long-Term Firm

Point-To-Point Transmission Service

For purposes of this Service Agreement,

the Transmission Provider’s Transmission

System consists of the facilities of the

(Region) as described in Attachment K.

1.0 Term of Transaction lllllllll

Start Date: lllllllllllllll

Termination Date: llllllllllll

2.0 Description of capacity and energy to be

transmitted by Transmission Provider

including the electric Control Area in

which the transaction originates.

lllllllllllllllllllll

3.0 Point(s) of Receipt: lllllllll

Delivering Party: lllllllllllll

Capacity Reservation: llllllllll

4.0 Point(s) of Delivery: lllllllll

Receiving Party: lllllllllllll

Capacity Reservation: llllllllll

5.0 The Maximum amount of capacity and

energy to be transmitted (Reserved

Capacity) is : lllll

6.0 Designation of party(ies) subject to

reciprocal service obligation:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

7.0 Name of the Control Area from which

capacity and energy will be delivered to

the Transmission Provider for

Transmission Service:

lllllllllllllllllllll

Name of the Control Area to which capacity

and energy will be delivered by the

Transmission Provider:

lllllllllllllllllllll

Name(s) of any Intervening Systems

providing transmission service:

lllllllllllllllllllll

lllllllllllllllllllll

8.0 Service under this Agreement may be

subject to some combination of the

charges detailed below. The appropriate

charges for individual transactions will

be determined in accordance with the

terms and conditions of the Tariff.

8.1 Transmission Charge:

lllllllllllllllllllll

8.2 System Impact and/or Facilities Study

Charge(s):

lllllllllllllllllllll

lllllllllllllllllllll

8.3 Direct Assignment Facilities Charge:

lllllllllllllllllllll

8.4 Ancillary Services Charges:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

8.5 Redispatch Charges:

To be filled in if applicable.

8.6 Network Upgrade Charges:

To be filled in if applicable.

9.0 Power Factor: The Transmission

Customer will be required to maintain a

power factor betweenl-percent lagging

andl-percent leading for all deliveries

of capacity and energy to and from the

Transmission Provider’s Transmission

System.

10.0 Transmission Losses:

10.1 Loss Factors:

10.1.1 If, based on operating experience

and technical studies, the Transmission

Provider determines that any of the

transmission loss factors on the

Transmission Provider’s Transmission

System differs from the loss factors set

forth in this Service Agreement, the

Transmission Provider will notify the

Transmission Customer of the revised

loss factor(s) pursuant to Section 1.0 of

this Service Agreement.

10.1.2 Transmission Provider

Transmission Loss Factor: Transmission

Provider transmission losses shall

initially bel% and shall be assessed on

the power scheduled and transmitted to

a point of delivery on the Transmission

Provider’s Transmission System.

11.0 Ancillary Services

11.1 Provided by Transmission Provider

11.1.1 Scheduling, System Control, and

Dispatch Service

11.1.2 Reactive Supply and Voltage

Control from Generation Sources Service

11.2 Provided by Transmission Customer

11.2.1 (To be filled in if applicable)

11.2.2

11.3 Provided bylll

11.3.1 (To be filled in if applicable)

11.3.2

12.0 Net Billing and Bill Crediting Option:

The Parties have agreed to implement

[Net Billing, Bill Crediting, or both] as

set forth in Attachment J.

13.0 Charges for Service: Charges for Firm

Point-to-Point Transmission Service and

associated Ancillary Services shall be

calculated in accordance with [Rate

Schedules] attached hereto and made a

part of this Service Agreement. The rates

or rate methodology used to calculate the

charges for service under that schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations and policies. [This section

will be included as appropriate at the

Transmission Provider’s discretion]

14.0 Independent System Operator: The

Parties understand that the Transmission

Provider may join an independent

system operator under Commission

jurisdiction. In the event the

Transmission Provider either joins or is

required to conform to protocols of the

independent system operator, the Parties

agree that the Transmission Provider

either may (1) may make any changes

necessary to conform to the terms and

conditions required by Commission

approval of the independent system

operator, or (2) terminate this Service

Agreement by providing a one-year

written notice to the Transmission

Customer.

Attachment B

Form of Service Agreement for NonFirm Point-To-Point Transmission

Service

1.0 This Service Agreement, dated as

ofllll, is entered into, by and between

the (Region) of Western Area Power

Administration (Transmission Provider),

andllll(Transmission Customer). The

Transmission Provider may revise charges or

losses for Non-Firm Point-to-Point

Transmission Service provided under this

Service Agreement pursuant to applicable

Federal laws, regulations and policies upon

written notice to the Transmission Customer.

2.0 The Transmission Customer has been

determined by the Transmission Provider to

be a Transmission Customer under Part II of

the Tariff and has filed a Completed

Application for Non-Firm Point-To-Point

Transmission Service in accordance with

Section 18.2 of the Tariff.

3.0 Service under this Service Agreement

shall be provided by the Transmission

Provider upon request by an authorized

representative of the Transmission Customer.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 555

For purposes of this Service Agreement, the

Transmission Provider’s Transmission

System consists of the facilities of the

(Region) as described in Attachment K.

4.0 The Transmission Customer agrees to

supply information the Transmission

Provider deems reasonably necessary in

accordance with Good Utility Practice in

order for it to provide the requested service.

5.0 The Transmission Provider agrees to

provide and the Transmission Customer

agrees to take and pay for Non-Firm PointTo-Point Transmission Service in accordance

with the provisions of Part II of the Tariff,

and this Service Agreement.

6.0 Any notice or request made to or by

either Party regarding this Service Agreement

shall be made to the representative of the

other Party as indicated below.

Transmission Provider:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

7.0 The Tariff as presently constituted or

as it may be revised or superseded is

incorporated herein and made a part hereof.

8.0 Power Factor: The Transmission

Customer will be required to maintain a

power factor between l-percent lagging and

l-percent leading for all deliveries of

capacity and energy to and from the

Transmission Provider’s Transmission

System.

9.0 Transmission Losses:

9.1 Loss Factors:

9.1.1 If, based on operating experience

and technical studies, the Transmission

Provider determines that any of the

transmission loss factors on the

Transmission Provider’s Transmission

System differs from the loss factors set

forth in this Service Agreement, the

Transmission Provider will notify the

Transmission Customer of the revised

loss factor(s) pursuant to Section 1.0 of

this Service Agreement.

9.1.2 Transmission Provider

Transmission Loss Factor: Transmission

Provider transmission losses shall

initially be lll% and shall be

assessed on the power scheduled and

transmitted to a point of delivery on the

Transmission Provider’s Transmission

System.

10.0 Ancillary Services

10.1 Provided by Transmission Provider

10.1.1 Scheduling, System Control, and

Dispatch Service

10.1.2 Reactive Supply and Voltage

Control from Generation Sources Service

10.2 Provided by Transmission Customer

10.2.1 To be filled in if appropriate

10.2.2

10.3 Provided by lll

10.3.1 To be filled in if appropriate

10.3.2

11.0 Net Billing and Bill Crediting

Option: The Parties have agreed to

implement [Net Billing, Bill Crediting, or

both] as set forth in Attachment J.

12.0 Charges for Service: Charges for

Non-Firm Point-to-Point Transmission

Service and associated Ancillary Services

shall be calculated in accordance with [Rate

Schedules] attached hereto and made a part

of this Service Agreement. The rates or rate

methodology used to calculate the charges for

service under that schedule were

promulgated and may be modified pursuant

to applicable Federal laws, regulations and

policies. [This section will be included as

appropriate at the Transmission Provider’s

discretion.]

13.0 Independent System Operator: The

Parties understand that the Transmission

Provider may join an independent system

operator under Commission jurisdiction. In

the event the Transmission Provider either

joins or is required to conform to protocols

of the independent system operator, the

Parties agree that the Transmission Provider

either may (1) may make any changes

necessary to conform to the terms and

conditions required by Commission approval

of the independent system operator, or (2)

terminate this Service Agreement by

providing a one-year written notice to the

Transmission Customer.

In Witness Whereof, the Parties have

caused this Service Agreement to be executed

by their respective authorized officials.

WESTERN AREA POWER

ADMINISTRATION

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

Date: llllllllllllllllll

Attachment C

Methodology To Assess Available

Transmission Capability

The Transmission Provider will compute

the transmission transfer capability available

on a point-to-point basis from the Delivering

Party to the Receiving Party using Good

Utility Practice and the engineering and

operating principles, standards, guidelines

and criteria of the Transmission Provider, the

applicable Regional Reliability Council, any

entity of which the Transmission Provider is

a member and is approved by the

Commission to promulgate or apply regional

or national reliability planning standards

(such as a regional transmission group, RTG),

or any similar organization that may exist in

the future of which the Transmission

Provider is then a member. Principal items

used to determine maximum transmission

transfer capability available shall include

reliability, transmission element loading,

system contingency performance, voltage

levels, and stability. In determining Available

Transmission Capability, the Transmission

Provider will reserve sufficient transmission

capability to meet its current and forecasted

power service obligations, current and

forecasted Network Customer loads, and

existing transmission service obligations.

Attachment D

Methodology for Completing a System

Impact Study

The Transmission Provider will assess the

capability of the Transmission System to

provide the service requested using the

criteria and process for this assessment as

detailed in Sections 4 and 5 of the

Transmission Provider’s annual FERC Form

715 submittal in those instances where the

Transmission Provider is a member of the

Western Systems Coordinating Council.

(CRSP, DSW, RMR, and SNR) The

Transmission Provider will use the MidContinent Area Power Pool (MAPP) System

Impact Study Methodology when the

Transmission Provider is a member of MAPP.

(UGPR)

Attachment E

Index of Point-To-Point Transmission

Service Customers

Customer Date of service

agreement

Attachment F

Service Agreement for Network

Integration Transmission Service

1.0 This Service Agreement, dated as of

llll, is entered into, by and between the

(Region) of Western Area Power

Administration (Transmission Provider), and

llll (Transmission Customer).

2.0 The Transmission Customer has been

determined by the Transmission Provider to

have a Completed Application for Network

Integration Transmission Service under the

Tariff.

3.0 Service under this Service Agreement

shall commence on the later of (1) llll,

or (2) the date on which construction of any

Direct Assignment Facilities and/or Network

Upgrades are completed, or (3) such other

date as is mutually agreed upon. Service

under this Service Agreement shall terminate

on llll.

4.0 The Transmission Provider agrees to

provide and the Transmission Customer

agrees to take and pay for Network

Integration Transmission Service in

accordance with the provisions of Part III of

the Tariff, and this Service Agreement.

5.0 Any notice or request made to or by

either Party regarding this Service Agreement

shall be made to the representative of the

other Party as indicated below.

Transmission Provider:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

6.0 The Tariff and the ‘‘Specifications for

Network Integration Transmission Service’’

as presently constituted or as they may be
556 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

revised or superseded are incorporated

herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have

caused this Service Agreement to be executed

by their respective authorized officials.

WESTERN AREA POWER

ADMINISTRATION

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Specifications for Network Integration

Transmission Service

For purposes of this Service Agreement,

the Transmission Provider’s Transmission

System consists of the facilities of the

(Region) as described in Attachment K.

1.0 The Transmission Provider will

provide Network Integration Transmission

Service over the Transmission Provider’s

Transmission System for the delivery of

capacity and energy from the Network

Customer’s designated Network Resources to

the Network Customer’s designated Network

Load. The Transmission Provider will also

provide non-firm transmission service from

non-designated Network Resources under the

terms of this Service Agreement. The loss

factors associated with this Network

Integration Transmission Service are set forth

below. Such losses shall be applied and

accounted for as set forth in Section 4.

2.0 Designated Network Resources:

Designated network resources & estimated

maximum

resource (MW)

Point of receipt Delivering party and voltage

3.0 Designated Network Loads:

Designated network load & estimated maximum resource (MW) Point of delivery Voltage

4.0 Transmission Losses:

4.1 Loss Factors:

4.1.1 If, based on operating experience

and technical studies, the Transmission

Provider determines that any of the

transmission loss factors on the Transmission

Provider’s Transmission System differs from

the loss factors set forth in this Service

Agreement, the Transmission Provider will

notify the Transmission Customer of the

revised loss factor(s) pursuant to Section 1.0

of this Service Agreement.

4.1.2 Transmission Provider

Transmission Loss Factor: For deliveries to

the Network Customer Network Load,

Transmission Provider transmission losses

shall initially be l% and shall be assessed

on the power scheduled and transmitted to

a point of delivery on the Transmission

Provider’s Transmission System.

4.2 Transmission losses may be revised

by written notice from the Transmission

Provider to the Transmission Customer.

5.0 The Network Customer’s transmission

facilities that are integrated with the

Transmission Provider’s Transmission

System will receive ll credit. These

facilities include the following:

5.1 llll

5.2 llll

6.0 Names of any intervening systems

with whom the Network Customer has

arranged for transmission service to the

Transmission Provider’s Transmission

System.

6.1 llll

6.2 llll

7.0 Power Factor: The Transmission

Customer will be required to maintain a

power factor between ll-percent lagging

and ll-percent leading for all deliveries of

capacity and energy to and from the

Transmission Provider’s Transmission

System.

8.0 Ancillary Services

8.1 Provided by Transmission Provider

8.1.1 Scheduling, System Control, and

Dispatch Service

8.1.2 Reactive Supply and Voltage

Control from Generation Sources Service

8.2 Provided by Transmission Customer

8.2.1 (To be filled in if appropriate)

8.2.2

8.3 Provided by llll

8.3.1 (To be filled in if appropriate)

8.3.2

9.0 Net Billing and Bill Crediting Option:

The Parties have agreed to implement [Net

Billing, Bill Crediting, or both] as set forth in

Attachment J.

10.0 Charges for Service: Charges for

associated Ancillary Services shall be

calculated in accordance with [Rate

Schedule] attached hereto and made a part of

this Service Agreement. The rates or rate

methodology used to calculate the charges for

service under that schedule were

promulgated and may be modified pursuant

to applicable Federal laws, regulations and

policies. [This section will be included as

appropriate at the Transmission Provider’s

discretion]

11.0 Independent System Operator: The

Parties understand that the Transmission

Provider may join an independent system

operator under Commission jurisdiction. In

the event the Transmission Provider either

joins or is required to conform to protocols

of the independent system operator, the

Parties agree that the Transmission Provider

either (1) may make any changes necessary

to conform to the terms and conditions

required by Commission approval of the

independent system operator, or (2)

terminate this Service Agreement by

providing a one-year written notice to the

Transmission Customer.

Attachment G

Network Operating Agreement

To be filed 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 and this Service
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 557

Agreement will be specified in a separate

Network Operating Agreement.

The Network Operating Agreement will

include provisions addressing the following:

Authorized Representatives of the Parties

Network Operating Committee

Load Following

System Protection

Redispatch to Manage Transmission

Constraints

Maintenance of Facilities

Load Shedding

Operation Impacts

Service Conditions

Data, Information and Reports

Metering

Communications

System Regulation and Operating Reserves

Assignment

Notices

Accounting for Transmission Losses

(Alternative language to be used only by

UGPR) Network Integration

Transmission provided by the

Transmission Provider will be subject to all

operating and scheduling procedures and

protocols of the Mid-Continent Area Power

Pool (MAPP) as stated in the MAPP Restated

Agreement and the MAPP Operating

Handbook as existing and as may be

amended, superseded or replaced. The

Transmission Provider will, therefore, not

enter into a separate Network Operating

Agreement with each Network Customer.

Attachment H

Annual Transmission Revenue

Requirement for Network Integration

Transmission Service

1.0 The Annual Transmission Revenue

Requirement for purposes of the Network

Integration Transmission Service is to be set

forth in a separate Rate Schedule.

2.0 The amount in 1 shall be effective

until amended by the Transmission Provider

or modified by the Commission pursuant to

applicable Federal laws, regulations and

policies, and may be revised upon written

notice to the Transmission Customer.

Attachment I

Index of Network Integration Customers

Customer Date of service

agreement

Attachment J

Provisions Specific to the Transmission

Provider

1.0 Change of Rates

Rates applicable under the Service

Agreements shall be subject to change by

Western in accordance with appropriate rate

adjustment procedures. If at any time the

United States promulgates a rate changing a

rate then in effect under a Service

Agreement, it will promptly notify the

Transmission Customer thereof. Rates shall

become effective as to the Service

Agreements as of the effective date of such

rate. The Transmission Customer, by written

notice to the Transmission Provider within

ninety (90) days after the effective date of a

rate change, may elect to terminate the

service billed by the Transmission Provider

under the new rate. Said termination shall be

effective on the last day of the billing period

requested by the Transmission Customer not

later than two (2) years after the effective date

of the new rate. Service provided by the

Transmission Provider shall be paid for at the

new rate regardless of whether the

Transmission Customer exercises the option

to terminate service.

2.0 Contingent Upon Appropriations

Where activities provided for in the

Service Agreement extend beyond the

current fiscal year, continued expenditures

by the Transmission Provider are contingent

upon Congress making necessary

appropriations required for the continued

performance of the Transmission Provider’s

obligations under the Service Agreement. In

the event that such appropriation by

Congress is not made, the Transmission

Customer hereby releases the Transmission

Provider from its obligations under the

Service Agreement and from all liability due

to the failure of Congress to make such

appropriation.

3.0 Covenant Against Contingent Fees

The Transmission Customer warrants that

no person or selling agency has been

employed or retained to solicit or secure the

Service Agreement upon a contract or

understanding for a commission, percentage,

brokerage, or contingent fee, excepting bona

fide employees or bona fide established

commercial or selling agencies maintained by

the Transmission Customer for the purpose

of securing business. For breach or violation

of this warranty, the Transmission Provider

shall have the right to annul the Service

Agreement without liability or in its

discretion to deduct from the Service

Agreement price or consideration the full

amount of such commission, percentage,

brokerage, or contingent fee.

4.0 Contract Work Hours and Safety

Standards

The Service Agreement, to the extent that

it is of a character specified in Section 103

of the Contract Work Hours and Safety

Standards Act (Act), 40 U.S.C. 329 (1986), is

subject to the provisions of the Act, 40 U.S.C.

327–333 (1986), and to regulations

promulgated by the Secretary of Labor

pursuant to the Act.

5.0 Equal Opportunity Employment

Practices

Section 202 of Executive Order No. 11246,

43 FR 46501 (1978), which provides, among

other things, that the Transmission Customer

will not discriminate against any employee

or applicant for employment because of race,

color, religion, sex, or national origin, is

incorporated by reference in the Service

Agreement.

6.0 Use of Convict Labor

The Transmission Customer agrees not to

employ any person undergoing sentence of

imprisonment in performing the Service

Agreement except as provided by 18 U.S.C.

4082(c)(2) and Executive Order 11755,

December 29, 1973.

7.0 Entire Agreement

The Service Agreements, including the

Tariff, together with the specifications under

such Service Agreement and any completed

scheduling forms shall constitute the entire

understanding between the Transmission

Provider and the Transmission Customer

with respect to Transmission Service

thereunder.

8.0 Power Supply Obligations

The Transmission Provider shall not be

obligated to supply capacity and energy from

its own sources or from its purchases from

other neighboring systems during

Interruptions or Curtailments in the delivery

by the Transmission Provider or delivery to

the Transmission Provider by the Delivering

Party of capacity and energy for

Transmission Service hereunder, and nothing

in the Service Agreement or in the

Transmission Customer’s agreements with

others shall have the effect of making, nor

shall anything in the Service Agreement or

said agreements with others be construed to

require the Transmission Provider to take any

action which would make the Transmission

Provider, directly or indirectly, a source of

power supply to the Transmission Customer,

to any Delivering Party or Receiving Party, or

to any ultimate recipient other than through

the provision of Operating Reserve Service.

9.0 Federal Law

Performance under the Tariff and Service

Agreement shall be governed by applicable

Federal law.

10.0 Continuing Obligations

The applicable provisions of the Service

Agreement will continue in effect after

termination of the Service Agreement to the

extent necessary to provide for final billing,

billing adjustments and payments, and with

respect to liability and indemnification from

acts or events that occurred while this

Service Agreement was in effect.

11.0 Net Billing

As mutually agreed in the Service

Agreement, payments due the Transmission

Provider by a Transmission Customer may be

offset against payments due the Transmission

Customer by the Transmission Provider for

the use of transmission facilities, operation

and maintenance of electric facilities, and

other services. For services included in net

billing procedures, payments due one Party

in any month shall be offset against payments

due the other Party in such month, and the

resulting net balance shall be paid to the

Party in whose favor such balance exists. The

Parties shall exchange such reports and

information that either Party requires for

billing purposes. Net billing shall not be used

for any amounts due which are in dispute.

12.0 Bill Crediting

As mutually agreed in the Service

Agreement, payments due the Transmission

Provider by a Transmission Customer shall

be paid by a Transmission Customer to a

third party when so directed by the
558 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Transmission Provider. Any third party

designated to receive payment in lieu of the

Transmission Provider, and the amount to be

paid to that party, will be so identified in

writing to a Transmission Customer with the

monthly power bill. The payment to the third

party shall be due and payable by the

payment due date specified on the

Transmission Provider’s bill. When remitting

payment to a designated third party, a

Transmission Customer shall indicate that

such payment is being made on behalf of the

Transmission Provider. The Transmission

Provider shall credit a Transmission

Customer for the amount paid as if payment

had been made directly to the Transmission

Provider. All other payment provisions shall

remain in full force and effect.

Attachment K

Authorities and Obligations

Western Area Power Administration

(Western) was established on December 21,

1977, pursuant to Section 302 of the

Department of Energy (DOE) Organization

Act, Public Law 95–91, dated August 4, 1977.

By law, the Bureau of Reclamation provides

Federal power resources to its project use

customers. By law, Western markets Federal

power resources to its electric service

customers. Western’s transmission system

was built primarily to enable the delivery of

Federal power to satisfy these contractual

obligations.

Western is not a public utility under

Sections 205 and 206 of the Federal Power

Act and is not specifically subject to the

requirements of the Federal Energy

Regulatory Commission’s (FERC or

Commission) Final Orders No. 888 and 888–

A. Western is a transmitting utility subject to

Section 211 of the Federal Power Act as

amended by the Energy Policy Act of 1992.

The Department of Energy has issued a

Power Marketing Administration Open

Access Transmission Policy that supports the

intent of the FERC Notice of Proposed

Rulemaking for Open Access Transmission.

Use of transmission facilities that Western

owns, operates, or to which it has contract

rights for delivery of Federal long-term firm

capacity and energy to project use and

electric service customers is a Western

responsibility under the terms and

conditions of marketing criteria and electric

service contracts implementing statutory

obligations to market Federal power. This is

complementary with the provisions of the

Tariff. Transmission service provided by

Western under the Tariff is solely for the use

of available transmission capability in excess

of the capability Western requires for the

delivery of long-term firm capacity and

energy to project use and electric service

customers of the Federal government.

Western will offer to provide others

transmission service equivalent to the service

Western provides itself.

Western’s Regional Offices reserved

transmission capacity shall, therefore,

include capacity sufficient to deliver Federal

power resources to customers of the Federal

government. Nothing in this Tariff shall alter,

amend or abridge the statutory or contractual

obligations of Western to market and deliver

Federal power resources and to repay the

Federal investment in such projects. The

Tariff provides for transmission, including

each Regional Office’s use of those facilities

for third party sales, on the unused capability

of transmission facilities under the

jurisdiction or control of each of Western’s

Regional Offices not required for the delivery

of long term firm capacity and energy to

customers of the Federal government in a

manner consistent with the spirit and intent

of FERC Order Nos. 888 and 888–A.

Western has prepared this Tariff and

service agreements to provide transmission

service comparable to that required of public

utilities by FERC Order Nos. 888 and 888–

A, and to implement those Orders consistent

with the DOE Policy. An entity desiring

transmission service from Western must

comply with the application procedures

outlined herein. The review and approval

requirements detailed herein will apply to all

requesting parties. Western will perform the

necessary studies or assessments for

evaluating requests for transmission service

as set forth in the Tariff. Any facility

construction or interconnection necessary to

provide transmission service will be subject

to Western’s General Requirements for

Interconnection which are available upon

request.

Western will provide Firm and Non-Firm

Point-to-Point Transmission Service and

Network Integration Transmission Service

under this Tariff. The specific terms and

conditions for providing transmission service

to a customer will be included in a Service

Agreement. Operating Procedures, Available

Transmission Capability (ATC), and System

Impact Methodology are defined in the

Attachments. Western’s rates are developed

under separate public processes pursuant to

applicable Federal law and regulations.

Therefore, rates and charges for specific

services will be set forth in the appropriate

Regional rates schedules attached to each

Service Agreement.

Western has marketed the maximum

practical amount of power from each of its

projects, leaving little or no flexibility for

provision of additional power services.

Changes in water conditions frequently affect

the ability of hydroelectric projects to meet

obligations on a short term basis. The unique

characteristics of the hydro resource,

Western’s marketing plans and the

limitations of the resource due to changing

water conditions limit Western’s ability to

provide generation-related services including

ancillary services and redispatching using

Federal hydro resources.

Western operates in 15 Central and

Western States encompassing a geographic

area of 3.38 million-square-kilometers (1.3

million-square-miles). Western has four

Customer Service Regional Offices and the

Colorado River Storage Project Customer

Service Center, each referred to in the Tariff

as Regional Office. The addresses for

submitting applications to Western’s

Regional Offices are as follows: Colorado

River Storage Project, CRSP Manager, P.O.

Box 11606, Salt Lake City, UT, 84147–0606,

telephone number (801) 524–6372; Desert

Southwest Region, Power Marketing

Manager, P.O. Box 6457, Phoenix, AZ,

95005–6457, telephone number (602) 352–

2789; Rocky Mountain Region, Power

Marketing Manager, P.O. Box 3700,

Loveland, CO, 80539–3003, telephone

number (970) 490–7370; Sierra Nevada

Region, Power Marketing Manager, 114

Parkshore Drive, Folsom, CA, 95630–4710,

telephone number (916) 353–4421; Upper

Great Plains Region, Power Marketing

Manager, P.O. Box 35800, Billings, MT,

59107–5800, telephone number (406) 247–

7394.

Colorado River Storage Project Customer

Service Center

The Colorado River Storage Project

Customer Service Center (CRSP CSC), located

in Salt Lake City, Utah, markets power from

three Federal multipurpose water

development projects; the Colorado River

Storage Project (CRSP), the Collbran Project,

and the Rio Grande Project, collectively

called the Integrated Projects. The

hydroelectric facilities associated with these

projects include: Flaming Gorge and

Fontenelle powerplants on the Green River;

Blue Mesa, Morrow Point, and Crystal

powerplants on the Gunnison River; Upper

and Lower Molina powerplants of the

Collbran Project in Western Colorado; the

largest of the CRSP facilities, Glen Canyon

power plant on the Colorado River; and

Elephant Butte power plant, part of the Rio

Grande Project on the Rio Grande River in

South Central New Mexico. The CRSP

transmission system consists of high-voltage

transmission lines and attendant facilities

extending from Arizona, into New Mexico,

through Colorado, and into portions of Utah

and Wyoming. The CRSP CSC uses the CRSP

transmission system to meet its commitments

to its federal customers, point-to-point

transmission customers, and exchange power

contractors. The CRSP CSC must, therefore,

reserve sufficient transmission capacity to

meet these long-term obligations. The CRSP

CSC also needs to reserve capacity in its

transmission system to enable it to deliver

power produced by the Integrated Projects

hydroelectric powerplants during periods

when flood control water releases produce

greater than normal generation levels.

The CRSP CSC office, located in Salt Lake

City, is a member of the Western Regional

Transmission Group and Southwest Regional

Transmission Group and operates within the

Western Systems Coordinating Council

(WSCC).

The CRSP CSC does not operate a control

area and as such may be unable to provide

some or all of the services under the Tariff

from its Integrated Projects hydroelectric

resources, including, but not limited to,

ancillary services and Network Integration

Transmission Service.

The CRSP CSC application processing fee

will be $1,600.

Desert Southwest Region

The Desert Southwest Region (DSR)

manages transmission facilities in the states

of Arizona, California, and Nevada. The DSR

transmission facilities are interconnected

with transmission facilities of several nonFederal entities. DSR is a member of the

Southwest Regional Transmission Group and

the Western Regional Transmission Group
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 559

and its system is operated in the WSCC. For

the purpose of implementing this Tariff the

transmission facilities of the Parker-Davis

Projects and the Pacific Northwest-Pacific

Southwest Intertie Project will be utilized.

DSR manages a control area operations center

through its Desert Southwest Regional Office

located in Phoenix, Arizona.

The DSR application processing fee will be

$1,700.

Rocky Mountain Region

The Rocky Mountain Region (RMR)

manages transmission facilities in the states

of Colorado, Wyoming, Nebraska, and Kansas

which were constructed for the primary

purpose of marketing power from the PickSloan Missouri Basin Program—Western

Division. The RMR office and control area

operations center is located in Loveland,

Colorado. The RMR is a member of the

Western Regional Transmission Group and

its system is operated in the Western Systems

Coordinating Council.

For RMR, the rates for Point-to-Point and

Network Integration Transmission Service

charged pursuant to the Tariff will be

calculated using the costs of the transmission

facilities of the Pick-Sloan Missouri Basin

Program—Western Division. The rates for the

ancillary services will be calculated using the

costs of the generation facilities of the PickSloan Missouri Basin Program—Western

Division and the Fryingpan—Arkansas

Project.

The RMR application processing fee will

be $1,600.

Sierra Nevada Region

The Sierra Nevada Customer Service

Region (SNR), located in Folsom, California,

manages the Central Valley Project (CVP)

transmission facilities in the state of

California. These facilities were constructed

for the primary purpose of marketing power

resources from the CVP. SNR also has

ownership rights to capacity in two multiparty transmission systems, the Pacific

Northwest-Pacific Southwest Intertie Project

(Pacific AC Intertie), and the CaliforniaOregon Transmission Project (COTP).

Congress authorized SNR’s participation in

the Pacific AC Intertie for the purpose of

importing power from the Pacific Northwest.

COTP rights were acquired pursuant to

Public Law 98–630, primarily for the purpose

of delivering power to the United States

Department of Energy Laboratories (DOE

Labs) and Federal Fish and Wildlife refuges.

Long-term use of the Pacific AC Intertie and

COTP by third parties is restricted under

existing contracts. SNR is a member of the

Western Regional Transmission Group

regional transmission group and operates

within the Western Systems Coordinating

Council reliability council.

The SNR does not operate a control area

and as such may be unable to provide some

or all of the services under the Tariff,

including but not limited to, ancillary

services and Network Integration

Transmission Service.

The SNR application processing fee will be

$1,300.

Upper Great Plains Region

The Upper Great Plains Region (UGPR)

manages transmission facilities in the states

of Montana, North Dakota, South Dakota,

Nebraska, Minnesota, and Iowa which were

constructed for the primary purpose of

marketing power from the Pick-Sloan

Missouri Basin Program—Eastern Division.

The UGPR office is located in Billings,

Montana. The UGPR manages a control area

operations center in Watertown, South

Dakota. The eastern portion of the UGPR

system is operated in the Mid-Continent Area

Power Pool (MAPP) reliability council. The

western portion of the system is operated in

the Western Systems Coordinating Council.

The UGPR transmission facilities are

integrated with the transmission facilities of

Basin Electric Power Cooperative (Basin) and

Heartland Consumers Power District

(Heartland) such that transmission services

are provided over an integrated transmission

system. UGPR rates for Point-to-Point and

Network Integration Transmission Service

charged pursuant to the Tariff will be

calculated using the costs of the transmission

facilities of UGPR, Basin, and Heartland that

are included in the Transmission System.

This Transmission System is also called the

Integrated System (IS) and the rates are

identified as IS Rates. The integration of

these facilities as the IS and the use of the

IS rates for short-term sales have been

approved by the Administrator of Western.

The definition of the Transmission System

and the rates for Point-To-Point and Network

Integration Transmission Service may be

subject to change upon conclusion of an

Open Access Transmission Service rate

development process conducted pursuant to

applicable Federal Law and regulations.

Both Basin and Heartland also own

generating facilities and must commit to

deliver the output of those resources to their

respective members. Basin and Heartland

will, therefore, reserve sufficient capacity in

their transmission facilities to deliver that

output.

Any Transmission Customer taking service

under this Tariff shall be subject to a

Stranded Cost Charge payable to either

UGPR, Basin or Heartland if such service is

used for the transmission of power or energy

that replaces wholly or in part, power or

energy supplied by Western, Basin or

Heartland respectively.

The Stranded Cost Charge of Basin shall be

applicable regardless of whether the

transmission relates to power and/or energy

that is purchased by or on behalf of a

Generation and Transmission Cooperative

member of Basin (G&T), a Distribution

Cooperative member of Basin or G&T, or a

retail customer of a Distribution Cooperative

member of Basin or a G&T.

The Stranded Cost Charge of Heartland

shall be applicable whether the transmission

service relates to power and/or energy that is

purchased by or on behalf of a municipal

customer of Heartland or a retail customer of

a municipal customer of Heartland.

Stranded costs will be recovered only from

a Transmission Customer who obtains

transmission service under access rights

granted through the Transmission Provider’s

compliance tariff developed pursuant to

FERC Final Orders No. 888 and 888–A and

causes either UGPR, Basin or Heartland to

incur stranded costs. Stranded costs will be

recovered through the terms and conditions

of a separate contract entered into either by

UGPR and the Transmission Customer or

Basin and the Transmission Customer or

Heartland and the Transmission Customer.

The UGPR application processing fee will

be $1,700.

[FR Doc. 98–128 Filed 1–5–98; 8:45am]

BILLING CODE 6450–01–P

ENVIRONMENTAL PROTECTION

AGENCY

[FRL–5947–6]

Agency Information Collection

Activities: Proposed Collections;

Comment Request; Information

Requirements for Importation of

Nonconforming Marine Engines

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Notice.

SUMMARY: In compliance with the

Paperwork Reduction Act (44 U.S.C.

3501 et seq.), this notice announces that

EPA is planning to submit the following

proposed and/or continuing Information

Collection Request (ICR) to the Office of

Management and Budget (OMB):

Information Requirements for

Importation of Nonconforming Marine

Engines, OMB Control Number 2060–

0320. Before submitting the ICR to OMB

for review and approval, EPA is

soliciting comments on specific aspects

of the proposed information collection

as described below.

DATES: Comments must be submitted on

or before March 9, 1998.

ADDRESSES: Interested persons may

obtain a copy of the ICR without charge

by contacting: Vehicle Programs and

Compliance Division, 401 M Street,

S.W. (6405J), Washington, D.C. 20460,

Attn: Imports.

FOR FURTHER INFORMATION CONTACT:

Mr. Leonard Lazarus, telephone (202)

564–9240, telefax (202) 564–9596.

SUPPLEMENTARY INFORMATION:

Affected entities: Entities potentially

affected by this action include

individuals and businesses importing

marine engines, including outboard

engines and personal watercraft.

Title: Information Requirements for

Importation of Nonconforming Marine

Engines, EPA Control Number 2060–

0320, expiration date May 31, 1997.

Abstract: Individuals and businesses

importing marine engines, including

outboard engines and personal

watercraft, request approval for engine

importations. The collection of this

information is mandatory in order to