Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 483

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALS

[Week of September 22 Through September 26, 1997]

Date Name and Location of Applicant Case No. Type of submission

Sept. 24, 1997 .......... Crysen Corporation .................................................. VFX–0013 .... Supplemental order. If Granted: The crude oil overcharge funds remaining in the Crysen Corporation consent order account will be distributed

under the terms of the Stripper Well Settlement

Agreement.

Do ......................... Personnel Security Hearing ..................................... VSO–0178 ... Request for Hearing under 10 CFR. Part 710. If

granted: An individual employed by the Department of Energy would receive a hearing under

10 CFR Part 710.

[FR Doc. 98–230 Filed 1–5–98; 8:45 am]

BILLING CODE 6450–01–P

DEPARTMENT OF ENERGY

Southwestern Power Administration

Open Access Transmission Service

Tariff

AGENCY: Southwestern Power

Administration, DOE.

ACTION: Notice of final tariff.

SUMMARY: The Southwestern Power

Administration (Southwestern) is

adopting this final Open Access

Transmission Service Tariff (Final

Tariff) in accordance with the Federal

Energy Regulatory Commission (FERC)

Orders 888 and 888–A, to the extent

consistent with laws and regulations

applicable to Southwestern’s activities.

DATES: The Final Tariff will become

effective February 5, 1998. The Final

Tariff will remain in effect until

superseded.

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 the

Southwestern’s Proposed Tariff

V. Coordination with Adoption of Open

Access Transmission Rates

I. Procedures

Southwestern will submit the Final

Tariff to the FERC under a nonjurisdictional docket and will request a

declaratory order that this Final Tariff

meets FERC comparability standards as

forth in FERC Order Nos. 888 and 888–

A. Southwestern will make necessary

changes, if any, in response to the FERC

declaratory order and will publish the

revised Final Tariff in the Federal

Register.

II. Background

Southwestern Power Administration

(Southwestern) was created by

Secretarial Order No. 1865, dated

August 31, 1943, as an agency of the

Department of the Interior, to carry out

the power marketing responsibilities

assigned to the Secretary of the Interior

by Executive Order 9366, dated July 30,

1943, and Executive Order 9373, dated

August 30, 1943. Section 5 of the Flood

Control Act of December 22, 1944 (58

Stat. 887, 890; 16 U.S.C. 825s)

broadened the power marketing

responsibilities of the Secretary of the

Interior by placing in him the

responsibility for marketing the electric

power and energy generated at reservoir

projects built by and under the control

of the Department of the Army. The U.S.

Department of Energy was created by an

Act of the U.S. Congress under the

Department of Energy Organization Act,

Public Law 95–91, dated August 4,

1977. Pursuant to Sections 302(a) and

301(b) of such Act, the functions of the

Secretary of the Interior and the Federal

Power Commission under Section 5 of

the Flood Control Act of 1944 which

relate to Southwestern were transferred

to and vested in the Secretary of Energy

effective October 1, 1977.

Under the said Section 5,

Southwestern is enjoined to market

power and energy generated at U.S.

Army Corps of Engineers dams with

preference to public bodies and

cooperatives, in such manner as to

encourage the most widespread use of

the resource, at the lowest possible rates

to consumers consistent with sound

business principles. The hydroelectric

projects from which Southwestern

currently markets power and energy are

located in the States of Arkansas,

Missouri, Oklahoma, and Texas.

Southwestern is a partial requirements

supplier by the nature of its

hydroelectric power resource to 93

municipal, cooperative, and military

electric systems in the States of

Arkansas, Kansas, Louisiana, Missouri,

Oklahoma, and Texas. Southwestern is

not a public utility under Sections 205

and 206 of the Federal Power Act.

Southwestern is a transmitting utility

subject to Section 211 of the Federal

Power Act as amended by the Energy

Policy Act of 1992.

The Federal Energy Regulatory

Commission (FERC) issued a Notice of

Proposed Rulemaking (NOPR) for Open

Access Transmission Service, published

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

October 4, 1995, the Secretary,

Department of Energy (DOE), adopted a

‘‘Power Marketing Administration Open

Transmission Access Policy’’ (DOE

Policy) in which the Secretary states

that DOE supports the spirit and intent

of the NOPR and directs the Power

Marketing Administrations to prepare

tariffs which conform to the principles

set forth in the FERC’s final rule. FERC

issued its final rule, Order No. 888,

published at 61 FR 21540, on May 10,

1996, and followed with supplementary

Order No. 888–A, published at 62 FR

12273, on March 14, 1997.

Southwestern began its formal process

of developing this Final Tariff when it

issued a Notice of Proposed Tariff

published at 62 FR 50307 on September

25, 1997 (proposed Tariff).

Southwestern’s Final Tariff is based on

the suggested open access transmission

tariff published as Appendix B to FERC

Order No. 888–A (pro forma tariff). On

October 9, 1997, Southwestern held a

public information meeting at its Tulsa,

Oklahoma offices. The formal comment

period for the proposed Tariff lasted 45

days. Comments received during this

formal period were considered in the

development of the Final Tariff.

Southwestern will submit the Final

Tariff to FERC under a nonjurisdictional docket and request a

declaratory order from FERC that the

Final Tariff meets or exceeds the FERC

comparability standards set forth in

FERC Orders No. 888 and 888–A.

The transmission facilities which

Southwestern owns and operates are

committed to the delivery of Federal

hydroelectric capacity and energy under
484 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

the terms and conditions of electric

service contracts which implement

Southwestern’s statutory obligations to

market Federal power. Fulfillment of

such obligations is complementary with

the provisions of the Final Tariff.

Transmission service provided by

Southwestern under the Final Tariff is

available for the transmission capacity

in Southwestern’s system in excess of

that required by Southwestern for the

integration of its resources for the longterm reliable delivery of Federal power

allocated to customers under contract to

Southwestern. Nothing in the Final

Tariff alters, amends, or abridges the

statutory or contractual obligations of

Southwestern to market and deliver

Federal power resources and to repay

the Nation’s investment in the

generation and transmission facilities

from which Southwestern markets

hydropower and energy.

Southwestern has prepared this Final

Tariff and service agreements to provide

transmission service comparable to that

required of public utilities by FERC

Orders No. 888 and 888–A, and to

implement those Orders consistent with

DOE Policy. Southwestern intends to

provide Firm and Non-Firm Point-toPoint Transmission Service and

Network Integration Transmission

Service under the terms and conditions

of the Final Tariff. The Final Tariff does

not include any rates or charges for

services, as Southwestern’s rates are

developed under a separate public

process pursuant to applicable Federal

law and regulations. However,

Southwestern’s rate schedule for nonFederal transmission service has been

developed in coordination with the

provisions of the pro forma Tariff and

conforms in all respects to the Final

Tariff. Service agreements which

incorporate the Final Tariff will also

include Southwestern’s rate schedule

for non-Federal transmission service.

Based on a reasonable level of risk,

Southwestern has historically marketed

the maximum practical power from its

resources, 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 and its inherent limitations

due to changing water conditions may

limit Southwestern’s ability to provide

generation-related services such as

ancillary services and redispatching

under the Final Tariff.

III. Comments Raised During the

Development of This Final Tariff

The formal public comment period

produced a number of comments about

the proposed Tariff. The following

discussion highlights the more

significant comments and

Southwestern’s responses.

Comment. Commentors expressed

concern that Southwestern did not

specify power loss factors and rates in

the proposed Tariff.

Response. Southwestern chose not to

duplicate matters in the Tariff which are

covered in its rate schedules. The rate

schedules are developed under a

separate process dictated by Federal

regulations which includes a significant

public participation process. Four

percent losses, based on a recent loss

study, are included in the proposed rate

schedules which are expected to go into

effect January 1, 1998.

Comment. Commentors were

concerned about Southwestern’s

statement in the proposed Tariff that

Network Service may not be provided.

A commentor finds Attachments F, G,

and H, having to do with Network

Service, inadequate.

Response. Southwestern has

determined that Network Integration

Transmission Service will be provided,

and is addressed in its proposed rate

schedule for non-Federal transmission

service. Southwestern is publishing a

network service agreement in

Attachment F to the Final Tariff.

Attachment G, on the Network

Operating Agreement, has not been

changed from the proposed Tariff

because Southwestern expects that, in

the event that network service is

requested, the operating agreements will

be unique to each arrangement and will

be individually negotiated. Attachment

H does not specify Southwestern’s

annual revenue requirement, but refers

to Southwestern’s rate schedule for nonFederal transmission service which has

that information. This reference is

consistent with Southwestern’s decision

to place all matters related directly to

rates in the rate schedules rather than in

the Final Tariff.

Comment. Commentors objected to

the changes Southwestern proposes to

make in the pro forma tariff provisions

related to stranded costs (Sections 26

and 34.5) and related to payment for

direct assignment facilities, ancillary

services, and study costs (Section 34).

The objection was that citing applicable

Federal law and regulations as the

guidance for such actions is more vague

than the original language which cites

FERC Order No. 888 and FERC policy,

respectively, as the guidance for such

recovery.

Response. Southwestern originally

made the changes to the proposed Tariff

because Southwestern is not under the

jurisdiction of the FERC. However, upon

a closer reading of these sections,

Southwestern has determined that

acknowledging the guidance of the

FERC in these matters does not impair

Southwestern’s non-jurisdictional

status. Accordingly, Southwestern has

returned, in part, to the pro forma tariff

language in Sections 26 and 34.5. In

Section 34, Southwestern changed the

phrase ‘‘Federal policy’’ in the proposed

Tariff to ‘‘Federal practice’’ in the Final

Tariff, which effectively makes the cited

guideline more limited and specific.

Comment. A commentor was

concerned that Southwestern has not

deleted language in some sections, such

as 20.2 and 21.2, which may suggest

that the FERC has jurisdiction over

Southwestern greater than it does

indeed have. The commentor requested

additional deletions in these and other

sections or recommended that

references to FERC policy or rules be

amended to refer instead to Federal

laws, regulations, and policies.

Response. The DOE Policy issued

October 4, 1995, directs Southwestern to

offer transmission service in a manner

comparable to the FERC’s final rule on

open access transmission service ‘‘to the

extent not otherwise prohibited by law.’’

Upon examination, Southwestern judges

that the specific recommended changes

are not necessary to preserve

Southwestern’s non-jurisdictional

status, so the suggested changes were

not incorporated into the Final Tariff.

Comment. A commentor objects to

any provisions which would permit

Southwestern to provide service

without an executed agreement.

Response. Southwestern prefers to

provide service only when an executed

Service Agreement exists, and intends

to avoid providing service without the

protection of an executed agreement if

at all possible. However, in the present

utility environment, Southwestern

believes it must be able to initiate

transmission service without an

executed agreement, if necessary.

Accordingly, Southwestern did not

change the provisions of its proposed

Tariff which address this matter.

Comment. A commentor made several

suggestions for additions to the pro

forma tariff language which would state,

in various forms, that Southwestern is

limited to actions which are consistent

with its authorities granted under

Federal law, regulations, or policies.

Response. Southwestern is indeed

limited in its actions due to its status as
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 485

a Federal agency. However, in all but

one of the cases where such additions

were suggested, Southwestern

determined that necessary limitations

were implicit in the pro forma tariff

language and did not require an explicit

statement. While such additions could

be proper, Southwestern has adhered to

the principle of avoiding making

changes, either of omission or addition,

to the pro forma tariff language unless

such changes are necessary to preserve

Southwestern’s authorities and

obligations under Federal law,

regulations, and policies. Except for an

addition to Section 13.5, the proposed

changes were not considered necessary

for such preservation.

Comment. Commentors found the

language in Attachment J stating that

Federal Customers are considered to be

the equivalent to Native Load Customers

insufficient to protect the rights of

Federal power customers. One

commentor recommended that

Southwestern insert a ‘‘binding

provision’’ in the body of the Final

Tariff to the effect that the Tariff applies

only to transmission capacity in excess

of the requirements of Southwestern’s

primary mission. Others suggested that

the pro forma tariff definition of Native

Load Customer be amended to reflect

Southwestern’s statutory obligations to

market and deliver Federal power and

energy, or recommended other changes

to Attachment J.

Response. Southwestern edited

Attachment J to strengthen and clarify

its authority and obligations and

inserted the new language as a Preamble

to the Final Tariff. Southwestern

removed the language which stated that

its Federal power customers are the

equivalent of Native Load Customers,

and did not alter the pro forma tariff

definition the Final Tariff. Placing this

language in the body of the Final Tariff

should alleviate the concerns of the

commentor.

Comment. One commentor objects to

the process in Section 7.3 for customers

who are in default due to non-payment

of bills. The commentor believes that

Southwestern’s proposed language is

inferior to the pro forma tariff language

because it does not provide the same

level of recourse as the pro forma tariff.

Response. Southwestern believes that

its provision for handling customer

defaults is appropriate, as referring

disputes to the FERC (pro forma tariff

provision) is not consistent with

Southwestern’s non-jurisdictional

status. Southwestern believes that a

specific reference to the disputes

resolution procedures of the Final Tariff

is unnecessary in this Section.

Comment. A commentor requests that

Southwestern amend Section 9 of the

proposed Tariff to preserve customers’

rights to participate in any public

process to amend the Tariff.

Response. Southwestern is committed

to providing a public process for any

future changes it may make to the Final

Tariff in accordance with the

Administrative Procedures Act.

However, Southwestern does not

consider the Tariff itself as an

appropriate place to state this

commitment. In addition, FERC’s

normal filing processes provide for

intervention by any interested party,

which gives customers an additional

opportunity for input into the process.

Comment. A commentor made

extensive comments on Southwestern’s

intent to require in advance any funds

needed for studies or construction. The

concerns were two-fold. First was a

recommendation that Southwestern

include language in construction

contracts to delineate ownership rights

for any facilities which use a customer’s

advance funds, including circumstances

where such facilities are not completed.

Secondly, the customer objected to

Southwestern’s deleting all references in

the pro forma tariff language to the

return of deposits with interest.

Response. Under the pro forma tariff,

all studies and construction are

provided for under separately

negotiated agreements between the

Transmission Provider and the

Transmission Customer. Southwestern

has long had a practice of addressing

ownership of facilities in its

construction agreements, and will

continue to do so. While this matter is

not directly related to the tariff, per se,

Southwestern will endeavor to take

these comments into account during any

future negotiations for study and

construction agreements.

It has never been Southwestern’s

practice to pay interest on funds

deposited in advance for facilities

studies or construction, principally

because Southwestern has no way of

accruing interest on such funds, which

are directly deposited into the U.S.

Treasury. If interest were to be paid on

refunded amounts, the expense would

necessarily become part of the rate base

and would therefore be borne by all

customers. Therefore, Southwestern will

continue to delete language in the pro

forma tariff which would require

Southwestern to pay interest on

refunded amounts.

Comment. Commentors objected to

Southwestern’s proposal to replace the

pro forma tariff’s provisions for a

deposit which could be returned with

interest with a nonrefundable

processing fee. The primary concern

seemed to be that the fee, which was not

specified in the proposed Tariff, might

be unduly burdensome.

Response. Southwestern specifies the

amounts of such fees in its Final Tariff,

based on estimated staff costs for

evaluating a customer request.

Southwestern believes that the specified

fees are reasonable and should not be

unduly burdensome to potential

customers of these services.

Comment. One commentor is

concerned that Southwestern may wish

to charge an agency fee if Southwestern

has to purchase some ancillary services.

Another commentor was concerned that

Southwestern’s hydroelectric resources

might be compromised by providing

generation-related ancillary services at

all, and suggests that Southwestern

confine itself to brokering such ancillary

services, rather than to providing them

directly. Still another suggested that

further limitations on the provision of

ancillary service be inserted into the

Final Tariff, and objects to an

implication that Southwestern would

set the level of some ancillary services

unilaterally in service agreements.

Response. The Final Tariff provides

that, in the event that Southwestern

purchases ancillary services on behalf of

a customer, the costs are passed through

to the customer. Southwestern has no

intent to charge an agency fee or other

markup. Southwestern believes that the

limitations on its ability to use Federal

power resources to provide ancillary

services are sufficiently set forth in its

revisions to Section 3. Language in

Schedules 1 through 6 which previously

indicated that the level of some

ancillary services would be set in the

service agreement has been removed.

Southwestern believes that brokering

ancillary services, except when

hydropower resources are severely

limited, is not a practical way to provide

such services.

Comment. A commentor pointed out

that the provision in Section 13.8 for

submitting schedules for firm

transmission service by 10:00 a.m. of the

previous day is not consistent with

regional practice.

Response. Southwestern agrees, and

has changed the references to 10:00 a.m.

to 2:00 p.m.

Comment. A commentor was

concerned about the requirement that

Energy Imbalances be corrected within

30 days and recommended a longer

period before the Transmission

Customer is assessed a charge for such

service.

Response. Southwestern does not

foresee this issue being a problem based

on historical interactions with those of
486 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

its customers which are located within

Southwestern’s Control Area, which are

the only customers to whom this

ancillary service would apply. Again,

Southwestern desires to avoid making

changes to the pro forma tariff where

possible.

Comment. A commentor requests that

Southwestern state for the record that it

‘‘intends to abide by its existing

contracts, including rates set forth in

those contracts.’’

Response. Southwestern will indeed

abide by its existing contracts. However,

all such contracts provide that rates may

be changed, as needed, in conformity

with Southwestern’s rate process, which

is subject to Federal regulations and

which is driven by Southwestern’s legal

requirement to recover its costs and to

repay the Nation for its investment in

the generation and transmission

facilities from which Southwestern

markets Federal power and energy.

Existing contracts provide for terms and

conditions of service, but specify that

rates for services under such contracts

change when Southwestern’s rates

change. Such customers have the right

to terminate these contracts if they find

changed rates unsatisfactory.

Comment. A commentor expressed

concern that Southwestern’s decision to

not publish its standard contracts as

part of the proposed Tariff could lead to

inequity for future transmission

customers.

Response. Southwestern is publishing

its standard Service Agreements in the

Final Tariff.

Comment. Commentors found

Attachments C and D to the Tariff, on

Southwestern’s methodology for

assessing Available Transfer Capability

(ATC) or for doing System Impact

Studies, respectively, inadequate.

Response. Southwestern changed its

Attachment C to cite the specific

Southwest Power Pool (SPP)

methodology for assessing ATC.

Southwestern’s ATC is computed as

part of the SPP, from data supplied by

Southwestern, and is not an

independent Southwestern process. As

this methodology is lengthy and is

publicly available, Southwestern sees

no reason to include it in greater detail

in the Final Tariff. Southwestern

amends Attachment D to indicate that

Southwestern is in the process of

developing and standardizing its criteria

for evaluating facilities. The new

standards, when available, may be

requested by any current or potential

customer.

Comment. Commentors expressed a

concern about the rate calculation

process, and expressed a desire for

Southwestern to develop an

‘‘adjustment method’’ for correcting

over- or under-collection of revenues for

transmission services.

Response The process of rate design

and calculation is not pertinent to the

Tariff. All rates for non-Federal

transmission service, and the process of

their development, are handled under a

separate regulatory process.

Southwestern’s annual Power

Repayment Study automatically factors

in any over- or under-collection of

revenues and makes necessary

adjustments to the rates as warranted.

IV. Summary of Significant Changes

from the Southwestern’s Proposed

Tariff

Attachment J, ‘‘Authorities and

Obligations,’’ of the proposed Tariff was

deleted in the Final Tariff, and an edited

portion of the original text was inserted

as the Preamble to the Final Tariff.

The language added by Southwestern

to the pro forma tariff in Section 3,

‘‘Ancillary Services’’ was edited for

clarity.

Southwestern amended Section 7,

‘‘Billing and Payment,’’ of the proposed

Tariff by changing the due date for

invoices (7.1), by clarifying the section

(7.3) on customer default, and by adding

two new sections (7.4 and 7.5) on billing

to the body of the Final Tariff, from

these provisions’ previous position in

the proposed service agreements. These

changes place all language on billing in

one section and change the due date

provision to conform to Southwestern’s

invoicing practice.

Southwestern restored Section 10.1,

‘‘Force Majeure,’’ to the language of the

pro forma tariff.

Southwestern amended Section 12,

‘‘Dispute Resolution Procedures, by

restoring most of the last sentence in

12.1 of the pro forma tariff language,

adding a new subsection, ‘‘External

Dispute Resolution Procedures,’’ and

renumbering the old Section 12.2 to

12.3.

Southwestern added the phrase, ‘‘and

subject to the Transmission Provider’s

authority under Federal law to complete

the expansion or upgrade’’ to the end of

the first sentence in Section 13.5,

‘‘Transmission Customer Obligations for

Facility Additions or Redispatch Costs.’’

Southwestern changed the scheduling

deadline in Section 13.8, ‘‘Scheduling of

Firm Point-to-Point Transmission

Service,’’ from 10:00 a.m. to 2:00 p.m.

Southwestern changed the language

in Sections 15.7 and 28.5, ‘‘Real Power

Losses,’’ from referring to service

agreements for loss factors and rates, to

referring to Southwestern’s rate

schedules.

Southwestern changed the mailing

address given in Section 17.1,

‘‘Application,’’ from Southwestern’s

post office box address to its street

address, to reflect a decision to phase

out the post office box address in the

future.

Sections 17.3, ‘‘Processing Fee,’’ and

29.2, ‘‘Application Procedures,’’ were

amended to insert specific application

processing fees.

Sections 19.4 and 32.4, ‘‘Facilities

Study Procedures,’’ were edited to

correct minor inconsistencies in

language related to payment of funds.

Section 24.3, ‘‘Power Factor,’’ was

edited to reflect the fact that

Southwestern’s power factor

requirements are stated in its rate

schedules rather than in service

agreements.

Section 25, ‘‘Compensation for

Transmission Service,’’ was edited to

reflect the fact that the rates for service

under the Final Tariff are in

Southwestern’s rate schedule rather

than in the Schedules 7 and 8 attached

to the Final Tariff.

Sections 26 and 34.5, ‘‘Stranded Cost

Recovery,’’ were changed by restoring

part of the original pro forma tariff

language.

Section 34, ‘‘Rates and Charges,’’ was

edited to change the phrase ‘‘Federal

policy’’ to ‘‘Federal practice.’’

Schedules 1 through 8 were

simplified and restored more nearly to

the pro forma tariff.

Southwestern deleted its Attachments

A, B, and F of the proposed Tariff, and

replaced them with standard service

agreements for long-term firm

transmission service, for short-term firm

and non-firm transmission service, and

for network integration transmission

service, respectively.

Minor editing in Attachments C and

D provide additional clarity and

specificity.

A list of transmission customers was

added to Attachment E.

Attachment H was edited to remove

language in the proposed Tariff and to

refer to Southwestern’s rate schedule for

transmission service as the source for

Southwestern’s annual revenue

requirement in regard to network

integration transmission service.

V. Coordination With Adoption of Open

Access Transmission Rates

Southwestern’s rate process, which is

distinct from the rate process used by

public utilities, includes mandatory

public participation procedures, as

described in 10 CFR 903. Additionally,

Southwestern’s rates are reviewed by

the FERC under different parameters
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 487

than those used for review of public

utility rates.

Southwestern is presently in the

process of filing new rates and rate

schedules, and expects to implement

such new rates on January 1, 1998. The

proposed rates for transmission service

are structured in accordance with the

Final Tariff. The new rate schedules

will be attached to service agreements

executed under the Tariff.

Review Under Executive Order 12866

Southwestern has an exemption from

centralized regulatory review under

Executive Order 12866; accordingly, no

clearance of this notice by the Office of

Management and Budget (OMB) is

required.

Review Under the Regulatory

Flexibility Act

The Regulatory Flexibility Act, 5

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

agencies to perform a regulatory

flexibility analysis if a proposed

regulation is likely to have a significant

economic impact on a substantial

number of small entities. Pursuant to

the execution of this Federal Register

notice, the Administrator,

Southwestern, certifies that no

significant economic impact on a

substantial number of small entities will

occur.

A redline/strikeout comparison of

Southwestern’s Final Tariff to the FERC

pro forma tariff is available on the

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

Dated: December 18, 1997.

Michael A. Deihl,

Administrator.

Open Access Transmission Service

Tariff

Table of Contents

Preamble: Authorities and Obligations

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 (OASIS).

1.29 Part I.

1.30 Part II.

1.31 Part III.

1.32 Parties

1.33 Point(s) of Delivery

1.34 Point(s) of Receipt

1.35 Point-To-Point Transmission

Service.

1.36 Power Purchaser.

1.37 Receiving Party.

1.38 Regional Transmission Group (RTG).

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 26Initial 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.

7.4 Payment Processes.

7.5 Net Billing

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 Administrative Disputes Resolution

Act.

12.4 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
488 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

18.1 Application.

18.2 Completed Application.

18.3 Reservation of Non-Firm Point-ToPoint Transmission Service.

18.4 Determination of Available

Transmission Capability.

19 Additional Study Procedures For Firm

Point-To-Point Transmission Service

Requests

19.1 Notice of Need for System Impact

Study.

19.2 System Impact Study Agreement and

Compensation.

19.3 System Impact Study Procedures.

19.4 Facilities Study Procedures.

19.5 Facilities Study Modifications.

19.6 Due Diligence in Completing New

Facilities.

19.7 Partial Interim Service.

19.8 Expedited Procedures for New

Facilities.

20 Procedures if The Transmission Provider

is Unable to Complete New

Transmission Facilities for Firm PointTo-Point Transmission Service

20.1 Delays in Construction of New

Facilities.

20.2 Alternatives to the Original Facility

Additions.

20.3 Refund Obligation for Unfinished

Facility Additions.

21 Provisions Relating to Transmission

Construction and Services on the

Systems of Other Utilities

21.1 Responsibility for Third-Party

System Additions.

21.2 Coordination of Third-Party System

Additions.

22 Changes in Service Specifications

22.1 Modifications On a Non-Firm Basis.

22.2 Modifications On a Firm Basis.

23 Sale or Assignment of Transmission

Service

23.1 Procedures for Assignment or

Transfer of Service.

23.2 Limitations on Assignment or

Transfer of Service.

23.3 Information on Assignment or

Transfer of Service.

24 Metering and Power Factor Correction at

Receipt and Delivery Point(s)

24.1 Transmission Customer Obligations.

24.2 Transmission Provider Access to

Metering Data.

24.3 Power Factor.

25 Compensation for Transmission Service

26 Stranded Cost Recovery

27 Compensation for New Facilities and

Redispatch Costs

Part III. Network Integation Transmission

Service

Preamble

28 Nature of Network Integration

Transmission Service

28.1 Scope of Service.

28.2 Transmission Provider

Responsibilities.

28.3 Network Integration Transmission

Service.

28.4 Secondary Service.

28.5 Real Power Losses.

28.6 Restrictions on Use of Service.

29 Initiating Service

29.1 Condition Precedent for Receiving

Service.

29.2 Application Procedures.

29.3 Technical Arrangements to be

Completed Prior to Commencement of

Service.

29.4 Network Customer Facilities.

29.5 This section is intentionally left

blank.

30 Network Resources

30.1 Designation of Network Resources.

30.2 Designation of New Network

Resources.

30.3 Termination of Network Resources.

30.4 Operation of Network Resources.

30.5 Network Customer Redispatch

Obligation.

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With The Transmission

Provider.

30.7 Limitation on Designation of

Network Resources.

30.8 Use of Interface Capacity by the

Network Customer.

30.9 Network Customer Owned

Transmission Facilities.

31 Designation of Network Load

31.1 Network Load.

31.2 New Network Loads Connected With

the Transmission Provider.

31.3 Network Load Not Physically

Interconnected with the Transmission

Provider.

31.4 New Interconnection Points.

31.5 Changes in Service Requests.

31.6 Annual Load and Resource

Information Updates.

32 Additional Study Procedures For

Network Integration

TransmissionService Requests

32.1 Notice of Need for System Impact

Study.

32.2 System Impact Study Agreement and

Compensation.

32.3 System Impact Study Procedures.

32.4 Facilities Study Procedures.

33 Load Shedding and Curtailments

33.1 Procedures.

33.2 Transmission Constraints.

33.3 Cost Responsibility for Relieving

Transmission Constraints.

33.4 Curtailments of Scheduled

Deliveries.

33.5 Allocation of Curtailments.

33.6 Load Shedding.

33.7 System Reliability.

34 Rates and Charges

34.1 Monthly Demand Charge.

34.2 Determination of Network

Customer’s Monthly Network Load.

34.3 Determination of Transmission

Provider’s Monthly Transmission System

Load.

34.4 Redispatch Charge.

34.5 Stranded Cost Recovery.

35 Operating Arrangements

35.1 Operation under The Network

Operating Agreement.

35.2 Network Operating Agreement.

35.3 Network Operating Committee.

Schedule 1

Scheduling, System Control and Dispatch

Service

Schedule 2

Reactive Supply and Voltage Control from

Generation Sources Service

Schedule 3

Regulation and Frequency Response

Service

Schedule 4

Energy Imbalance Service

Schedule 5

Operating Reserve—Spinning Reserve

Service

Schedule 6

Operating Reserve—Supplemental Reserve

Service

Schedule 7

Long-Term Firm and Short-Term Firm

Point-to-Point Transmission Service

Schedule 8

Non-Firm Point-to-Point Transmission

Service

Attachment A

Form of Service Agreement For Firm Pointto-Point Transmission Service

Attachment B

Form of Service Agreement For Non-Firm

Point-to-Point Transmission Service

Attachment C

Methodology to Assess Available

Transmission Capability

Attachment D

Methodology for Completing a System

Impact Study

Attachment E

Index of Point-to-Point Transmission

Service Customers

Attachment F

Form of Service Agreement For Network

Integration Transmission Service

Attachment G

Network Operating Agreement

Attachment H

Annual Transmission Revenue

Requirement For Network Integration

Transmission Service

Attachment I

Index of Network Integration Transmission

Service Customers

Open Access Transmission Service

Tariff

Preamble: Authorities and Obligations

Southwestern Power Administration

(Southwestern) was created by

Secretarial Order No. 1865, dated

August 31, 1943, as an agency of the

Department of the Interior, to carry out

the power marketing responsibilities

assigned to the Secretary of the Interior

by Executive Orders 9366, dated July 30,

1943, and 9373, dated August 30, 1943.

Section 5 of the Flood Control Act of

December 22, 1944 (58 Stat. 887, 890; 16

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

marketing responsibilities of the

Secretary of the Interior by placing in

him the responsibility for marketing the

electric power and energy generated at

reservoir projects built by and under the

control of the Department of the Army.

Under Public Law 95–456 (92 Stat.

1230; 16 U.S.C. 825s–3), Southwestern

became part of the Department of

Energy pursuant to Section 302 of the

Department of Energy Organization Act

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

Pursuant to the Flood Control Act of

1944, Southwestern markets
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 489

hydroelectric power and energy which

is generated at U.S. Army Corps of

Engineers (Corps) Dams in excess of

project needs ‘‘to encourage the most

widespread use thereof at the lowest

possible rates to consumers consistent

with sound business principles * * *.

Preference in the sale of such power and

energy shall be given to public bodies

and cooperatives.’’ Further, ‘‘only such

transmission lines and related facilities

as may be necessary in order to make

the power and energy generated at such

projects available in wholesale

quantities for sale * * *’’ may be

constructed or acquired to fulfill this

mission.

Southwestern markets power and

associated energy from Corps

hydroelectric generation projects in the

States of Arkansas, Missouri, Oklahoma,

and Texas, primarily to customers

which have received formal allocations

of specified quantities of Federal power

and associated energy (Federal Power

Customers) in those states as well as in

the States of Kansas and Louisiana. By

statute, Southwestern’s Transmission

System was constructed to enable the

integration of Southwestern’s

hydroelectric power resources to satisfy

Southwestern’s contractual obligations

to its Federal Power customers.

Southwestern sells transmission service

from federally owned or controlled

facilities only to the extent that

transmission capacity is available in

excess of that necessary to reliably

deliver Federal power.

Southwestern is not a jurisdictional

public utility under Sections 205 and

206 of the Federal Power Act and is not

specifically subject to the requirements

of the Federal Energy Regulatory

Commission’s (FERC) Final Orders Nos.

888 and 888–A. However, Southwestern

is a transmitting utility subject to

Section 211 of the Federal Power Act as

amended by the Energy Policy Act of

1992. Southwestern is also subject to the

reciprocity provisions of FERC Order

Nos. 888 and 888–A. Additionally, the

Department of Energy has issued a

Power Marketing Administration Open

Access Transmission Policy that

supports the intent of the FERC Final

Rule in Order No. 888. Southwestern

submits this version of the FERC’s Open

Access Transmission Tariff (Tariff) as

comparable to the pro forma tariff

published in FERC Order No. 888–A

with the proviso that nothing in this

Tariff alters, amends, or abridges the

statutory or contractual obligations of

Southwestern to market and deliver

Federal power resources and to repay

the Federal investment in the facilities

from which Southwestern markets such

resources.

Part I. Common Service Provisions

1 Definitions

1.1 Ancillary Services: Those

services that are necessary to support

the transmission of capacity and energy

from resources to loads while

maintaining reliable operation of the

Transmission Provider’s Transmission

System in accordance with Good Utility

Practice.

1.2 Annual Transmission Costs: The

total annual cost of the Transmission

System for purposes of Network

Integration Transmission Service shall

be the amount specified in Attachment

H until amended by the Transmission

Provider or modified by the

Commission, pursuant to Federal law.

1.3 Application: A request by an

Eligible Customer for transmission

service pursuant to the provisions of the

Tariff.

1.4 Commission: The Federal Energy

Regulatory Commission.

1.5 Completed Application: An

Application that satisfies all of the

information and other requirements of

the Tariff, including any required

application processing fee.

1.6 Control Area: An electric power

system or combination of electric power

systems to which a common automatic

generation control scheme is applied in

order to:

(1) Match, at all times, the power

output of the generators within the

electric power system(s) and capacity

and energy purchased from entities

outside the electric power system(s),

with the load within the electric power

system(s);

(2) Maintain scheduled interchange

with other Control Areas, within the

limits of Good Utility Practice;

(3) Maintain the frequency of the

electric power system(s) within

reasonable limits in accordance with

Good Utility Practice; and

(4) Provide sufficient generating

capacity to maintain operating reserves

in accordance with Good Utility

Practice.

1.7 Curtailment: A reduction in firm

or non-firm transmission service in

response to a transmission capacity

shortage as a result of system reliability

conditions.

1.8 Delivering Party: The entity

supplying capacity and energy to be

transmitted at Point(s) of Receipt.

1.9 Designated Agent: Any entity

that performs actions or functions on

behalf of the Transmission Provider, an

Eligible Customer, or the Transmission

Customer required under the Tariff.

1.10 Direct Assignment Facilities:

Facilities or portions of facilities that are

constructed by the Transmission

Provider for the sole use/benefit of a

particular Transmission Customer

requesting service under the Tariff.

Direct Assignment Facilities shall be

specified in the Service Agreement that

governs service to the Transmission

Customer.

1.11 Eligible Customer: (i) Any

electric utility (including the

Transmission Provider and any power

marketer), Federal power marketing

agency, or any person generating

electric energy for sale for resale is an

Eligible Customer under the Tariff.

Electric energy sold or produced by

such entity may be electric energy

produced in the United States, Canada

or Mexico. However, with respect to

transmission service that the

Commission is prohibited from ordering

by Section 212(h) of the Federal Power

Act, such entity is eligible only if the

service is provided pursuant to a state

requirement that the Transmission

Provider offer the unbundled

transmission service, or pursuant to a

voluntary offer of such service by the

Transmission Provider. (ii) Any retail

customer taking unbundled

transmission service pursuant to a state

requirement that the Transmission

Provider offer the transmission service,

or pursuant to a voluntary offer of such

service by the Transmission Provider is

an Eligible Customer under the Tariff.

1.12 Facilities Study: An

engineering study conducted by the

Transmission Provider to determine the

required modifications to the

Transmission Provider’s Transmission

System, including the cost and

scheduled completion date for such

modifications, that will be required to

provide the requested transmission

service.

1.13 Firm Point-To-Point

Transmission Service: Transmission

Service under this Tariff that is reserved

and/or scheduled between specified

Points of Receipt and Delivery pursuant

to Part II of this Tariff.

1.14 Good Utility Practice: Any of

the practices, methods and acts engaged

in or approved by a significant portion

of the electric utility industry during the

relevant time period, or any of the

practices, methods and acts which, in

the exercise of reasonable judgment in

light of the facts known at the time the

decision was made, could have been

expected to accomplish the desired

result at a reasonable cost consistent

with good business practices, reliability,

safety and expedition. Good Utility

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

1.15 Interruption: A reduction in

non-firm transmission service due to

economic reasons pursuant to Section

14.7.

1.16 Load Ratio Share: Ratio of a

Transmission Customer’s Network Load

to the Transmission Provider’s total load

computed in accordance with Sections

34.2 and 34.3 of the Network Integration

Transmission Service under Part III of

the Tariff and calculated on a rolling

twelve month basis.

1.17 Load Shedding: The systematic

reduction of system demand by

temporarily decreasing load in response

to transmission system or area capacity

shortages, system instability, or voltage

control considerations under Part III of

the Tariff.

1.18 Long-Term Firm Point-To-Point

Transmission Service: Firm Point-ToPoint Transmission Service under Part II

of the Tariff with a term of one year or

more.

1.19 Native Load Customers: The

wholesale and retail power customers of

the Transmission Provider on whose

behalf the Transmission Provider, by

statute, franchise, regulatory

requirement, or contract, has

undertaken an obligation to construct

and operate the Transmission Provider’s

system to meet the reliable electric

needs of such customers.

1.20 Network Customer: An entity

receiving transmission service pursuant

to the terms of the Transmission

Provider’s Network Integration

Transmission Service under Part III of

the Tariff.

1.21 Network Integration

Transmission Service: The transmission

service provided under Part III of the

Tariff.

1.22 Network Load: The load that a

Network Customer designates for

Network Integration Transmission

Service under Part III of the Tariff. The

Network Customer’s Network Load shall

include all load served by the output of

any Network Resources designated by

the Network Customer. A Network

Customer may elect to designate less

than its total load as Network Load but

may not designate only part of the load

at a discrete Point of Delivery. Where an

Eligible Customer has elected not to

designate a particular load at discrete

points of delivery as Network Load, the

Eligible Customer is responsible for

making separate arrangements under

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

necessary for such non-designated load.

1.23 Network Operating Agreement:

An executed agreement that contains

the terms and conditions under which

the Network Customer shall operate its

facilities and the technical and

operational matters associated with the

implementation of Network Integration

Transmission Service under Part III of

the Tariff.

1.24 Network Operating Committee:

A group made up of representatives

from the Network Customer(s) and the

Transmission Provider established to

coordinate operating criteria and other

technical considerations required for

implementation of Network Integration

Transmission Service under Part III of

this Tariff.

1.25 Network Resource: Any

designated generating resource owned,

purchased, or leased by a Network

Customer under the Network Integration

Transmission Service Tariff. Network

Resources do not include any resource,

or any portion thereof, that is committed

for sale to third parties or otherwise

cannot be called upon to meet the

Network Customer’s Network Load on a

non-interruptible basis.

1.26 Network Upgrades:

Modifications or additions to

transmission-related facilities that are

integrated with and support the

Transmission Provider’s overall

Transmission System for the general

benefit of all users of such Transmission

System.

1.27 Non-Firm Point-To-Point

Transmission Service: Point-To-Point

Transmission Service under the Tariff

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

Curtailment or Interruption as set forth

in Section 14.7 under Part II of the

Tariff. Non-Firm Point-To-Point

Transmission Service is available on a

stand-alone basis for periods ranging

from one hour to one month.

1.28 Open Access Same-Time

Information System (OASIS): The

information system and standards of

conduct contained in Part 37 of the

Commission’s regulations and all

additional requirements implemented

by subsequent Commission orders

dealing with OASIS.

1.29 Part I: Tariff Definitions and

Common Service Provisions contained

in Sections 2 through 12.

1.30 Part II: Tariff Sections 13

through 27 pertaining to Point-To-Point

Transmission Service in conjunction

with the applicable Common Service

Provisions of Part I and appropriate

Schedules and Attachments.

1.31 Part III: Tariff Sections 28

through 35 pertaining to Network

Integration Transmission Service in

conjunction with the applicable

Common Service Provisions of Part I

and appropriate Schedules and

Attachments.

1.32 Parties: The Transmission

Provider and the Transmission

Customer receiving service under the

Tariff.

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

the Transmission Provider’s

Transmission System where capacity

and energy transmitted by the

Transmission Provider will be made

available to the Receiving Party under

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

Delivery shall be specified in the

Service Agreement for Long-Term Firm

Point-to-Point Transmission Service.

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

interconnection on the Transmission

Provider’s Transmission System where

capacity and energy will be made

available to the Transmission Provider

by the Delivering Party under Part II of

the Tariff. The Point(s) of Receipt shall

be specified in the Service Agreement

for Long-Term Firm Point-to-Point

Transmission Service.

1.35 Point-To-Point Transmission

Service: The reservation and

transmission of capacity and energy on

either a firm or non-firm basis from the

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

Delivery under Part II of the Tariff.

1.36 Power Purchaser: The entity

that is purchasing the capacity and

energy to be transmitted under the

Tariff.

1.37 Receiving Party: The entity

receiving the capacity and energy

transmitted by the Transmission

Provider to Point(s) of Delivery.

1.38 Regional Transmission Group

(RTG): A voluntary organization of

transmission owners, transmission users

and other entities approved by the

Commission to efficiently coordinate

transmission planning (and expansion),

operation and use on a regional (and

interregional) basis.

1.39 Reserved Capacity: The

maximum amount of capacity and

energy that the Transmission Provider

agrees to transmit for the Transmission

Customer over the Transmission

Provider’s Transmission System

between the Point(s) of Receipt and the

Point(s) of Delivery under Part II of the

Tariff. Reserved Capacity shall be

expressed in terms of whole megawatts

on a sixty (60) minute interval

(commencing on the clock hour) basis.

1.40 Service Agreement: The initial

agreement and any amendments or

supplements thereto entered into by the

Transmission Customer and the

Transmission Provider for service under

the Tariff.

1.41 Service Commencement Date:

The date the Transmission Provider

begins to provide service pursuant to

the terms of an executed Service

Agreement, or the date the Transmission

Provider begins to provide service in
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 491

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 or

29.1 of the Tariff. This term is used in

the Part I Common Service Provisions to

include customers receiving

transmission service under Part II and

Part III of this Tariff.

1.46 Transmission Provider:

Southwestern Power Administration,

which owns, controls, or operates the

facilities used for the transmission of

electric energy in interstate commerce

and provides transmission service under

the Tariff.

1.47 Transmission Provider’s

Monthly Transmission System Peak:

The maximum firm usage of the

Transmission Provider’s Transmission

System in a calendar month.

1.48 Transmission Service: PointTo-Point Transmission Service provided

under Part II of the Tariff on a firm and

non-firm basis.

1.49 Transmission System: The

facilities owned, controlled or operated

by the Transmission Provider that are

used to provide transmission service

under Part II and Part III of the Tariff.

2 Initial Allocation and Renewal

Procedures

2.1 Initial Allocation of Available

Transmission Capability: For purposes

of determining whether existing

capability on the Transmission

Provider’s Transmission System is

adequate to accommodate a request for

firm service under this Tariff, all

Completed Applications for new firm

transmission service received during the

initial sixty (60) day period

commencing with the effective date of

the Tariff will be deemed to have been

filed simultaneously. A lottery system

conducted by an independent party

shall be used to assign priorities for

Completed Applications filed

simultaneously. All Completed

Applications for firm transmission

service received after the initial sixty

(60) day period shall be assigned a

priority pursuant to Section 13.2.

2.2 Reservation Priority For Existing

Firm Service Customers: Existing firm

service customers (wholesale

requirements and transmission-only,

with a contract term of one-year or

more), have the right to continue to take

transmission service from the

Transmission Provider when the

contract expires, rolls over or is

renewed. This transmission reservation

priority is independent of whether the

existing customer continues to purchase

capacity and energy from the

Transmission Provider or elects to

purchase capacity and energy from

another supplier. If at the end of the

contract term, the Transmission

Provider’s Transmission System cannot

accommodate all of the requests for

transmission service, the existing firm

service customer must agree to accept a

contract term at least equal to a

competing request by any new Eligible

Customer and to pay the current rate for

such service. This transmission

reservation priority for existing firm

service customers is an ongoing right

that may be exercised at the end of all

firm contract terms of one-year or

longer.

3 Ancillary Services

Ancillary Services are needed with

transmission service to maintain

reliability within and among the Control

Areas affected by the transmission

service. The Transmission Provider is

required to provide (or offer to arrange

with the local Control Area operator as

discussed below), and the Transmission

Customer is required to purchase, the

following Ancillary Services (i)

Scheduling, System Control and

Dispatch, and (ii) Reactive Supply and

Voltage Control from Generation

Sources.

The Transmission Provider is

required to 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 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
492 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

the same period to all Eligible

Customers on the Transmission

Provider’s system. Sections 3.1 through

3.6 below list the six Ancillary Services.

3.1 Scheduling, System Control and

Dispatch Service: The rates and/or

methodology are described in Schedule

1.

3.2 Reactive Supply and Voltage

Control from Generation Sources

Service: The rates and/or methodology

are described in Schedule 2.

3.3 Regulation and Frequency

Response Service: Where applicable the

rates and/or methodology are described

in Schedule 3.

3.4 Energy Imbalance Service:

Where applicable the rates and/or

methodology are described in Schedule

4.

3.5 Operating Reserve—Spinning

Reserve Service: Where applicable the

rates and/or methodology are described

in Schedule 5.

3.6 Operating Reserve—

Supplemental Reserve Service: Where

applicable the rates and/or methodology

are described in Schedule 6.

4 Open Access Same-Time

Information System (OASIS)

Terms and conditions regarding Open

Access Same-Time Information System

and standards of conduct are set forth in

18 CFR 37 of the Commission’s

regulations (Open Access Same-Time

Information System and Standards of

Conduct for Public Utilities). In the

event available transmission capability

as posted on the OASIS is insufficient

to accommodate a request for firm

transmission service, additional studies

may be required as provided by this

Tariff pursuant to Sections 19 and 32.

5 Local Furnishing Bonds

5.1 Transmission Providers That

Own Facilities Financed by Local

Furnishing Bonds: This provision is

applicable only to Transmission

Providers that have financed facilities

for the local furnishing of electric

energy with tax-exempt bonds, as

described in Section 142(f) of the

Internal Revenue Code (‘‘local

furnishing bonds’’). Notwithstanding

any other provision of this Tariff, the

Transmission Provider shall not be

required to provide transmission service

to any Eligible Customer pursuant to

this Tariff if the provision of such

transmission service would jeopardize

the tax-exempt status of any local

furnishing bond(s) used to finance the

Transmission Provider’s facilities that

would be used in providing such

transmission service.

5.2 Alternative Procedures for

Requesting Transmission Service:

(i) If the Transmission Provider

determines that the provision of

transmission service requested by an

Eligible Customer would jeopardize the

tax-exempt status of any local

furnishing bond(s) used to finance its

facilities that would be used in

providing such transmission service, it

shall advise the Eligible Customer

within thirty (30) days of receipt of the

Completed Application.

(ii) If the Eligible Customer thereafter

renews its request for the same

transmission service referred to in (I) by

tendering an application under Section

211 of the Federal Power Act, the

Transmission Provider, within ten (10)

days of receiving a copy of the Section

211 application, will waive its rights to

a request for service under Section

213(a) of the Federal Power Act and to

the issuance of a proposed order under

Section 212(c) of the Federal Power Act.

The Commission, upon receipt of the

Transmission Provider’s waiver of its

rights to a request for service under

Section 213(a) of the Federal Power Act

and to the issuance of a proposed order

under Section 212(c) of the Federal

Power Act, shall issue an order under

Section 211 of the Federal Power Act.

Upon issuance of the order under

Section 211 of the Federal Power Act,

the Transmission Provider shall be

required to provide the requested

transmission service in accordance with

the terms and conditions of this Tariff.

6 Reciprocity

A Transmission Customer receiving

transmission service under this Tariff

agrees to provide comparable

transmission service that it is capable of

providing to the Transmission Provider

on similar terms and conditions over

facilities used for the transmission of

electric energy owned, controlled or

operated by the Transmission Customer

and over facilities used for the

transmission of electric energy owned,

controlled or operated by the

Transmission Customer’s corporate

affiliates. A Transmission Customer that

is a member of a power pool or Regional

Transmission Group also agrees to

provide comparable transmission

service to the members of such power

pool and Regional Transmission Group

on similar terms and conditions over

facilities used for the transmission of

electric energy owned, controlled or

operated by the Transmission Customer

and over facilities used for the

transmission of electric energy owned,

controlled or operated by the

Transmission Customer’s corporate

affiliates.

This reciprocity requirement applies

not only to the Transmission Customer

that obtains transmission service under

the Tariff, but also to all parties to a

transaction that involves the use of

transmission service under the Tariff,

including the power seller, buyer and

any intermediary, such as a power

marketer. This reciprocity requirement

also applies to any Eligible Customer

that owns, controls or operates

transmission facilities that uses an

intermediary, such as a power marketer,

to request transmission service under

the Tariff. If the Transmission Customer

does not own, control or operate

transmission facilities, it must include

in its Application a sworn statement of

one of its duly authorized officers or

other representatives that the purpose of

its Application is not to assist an

Eligible Customer to avoid the

requirements of this provision.

7 Billing and Payment

7.1 Billing Procedure: Within a

reasonable time after the first day of

each month, the Transmission Provider

shall submit an invoice to the

Transmission Customer for the charges

for all services furnished under the

Tariff during the preceding month. The

invoice shall be paid by the

Transmission Customer within twenty

(20) days of receipt. All payments shall

be made in immediately available funds

payable to the Transmission Provider, or

by wire transfer to a bank named by the

Transmission Provider.

7.2 Interest on Unpaid Balances:

Interest on any unpaid amounts

(including amounts placed in escrow)

shall be calculated in accordance with

the methodology specified for interest

on refunds in the Commission’s

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

Interest on delinquent amounts shall be

calculated from the due date of the bill

to the date of payment. When payments

are made by mail, bills shall be

considered as having been paid on the

date of receipt by the Transmission

Provider.

7.3 Customer Default: In the event

the Transmission Customer fails, for any

reason other than a billing dispute as

described below, to make payment to

the Transmission Provider on or before

the due date as described above, and

such failure of payment is not corrected

within thirty (30) calendar days after the

Transmission Provider notifies the

Transmission Customer to cure such

failure, a default by the Transmission

Customer shall be deemed to exist.

Within the same 30 calendar days after

notice of failure to make payment, the

Transmission Customer shall have the

right of appeal to the Administrator,

Southwestern Power Administration.

The Transmission Provider shall
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 493

continue service until the Administrator

makes a determination on the

Transmission Customer’s appeal.

Service may be terminated without

further notice if Transmission

Customer’s appeal is denied. 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.

7.4 Payment Process: Payment of

amounts due to the Transmission

Provider may be made through

electronic funds transfer (EFT) or may

be submitted as checks and mailed to:

Southwestern Power Administration

P.O. Box 845994

Dallas, Texas 75284–5994

EFT payments shall conform to the

Transmission Provider’s protocols for

electronic transfer of funds in effect at

the time of the payment. The

designation of the address where

payment is to be submitted may be

changed by the Transmission Provider

upon 30 days’ written notice to the

Transmission Customer. The Parties

shall exchange such reports and

information as either Party requires for

billing purposes.

7.5 Net Billing: By agreement of the

Parties, payments due the Transmission

Provider by the Transmission Customer

may be offset against payments due the

Transmission Customer by the

Transmission Provider for the sale or

exchange of electric power, energy, and

other services. For services included in

net billing procedures, payments due

the Transmission Customer in any

month shall be offset against payments

due the Transmission Provider in such

month, and the resulting net balance

shall be paid by the Transmission

Customer when the balance exists in

favor of the Transmission Provider, and

shall be applied against future payments

due the Transmission Provider when

the balance exists in favor of the

Transmission Customer. Net billing

procedures shall not be used for any

amounts which the Transmission

Provider determines, in its sole

judgment, to be in dispute.

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.

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

(A) Through a dispute resolution

process, pursuant to the terms of a

regional transmission association

governing agreement of which both

Parties are members; or

(B) If both Parties are not members of

the same regional transmission

association, 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 Alternative Disputes Resolution

Act: Any dispute regarding service

provided under the Service Agreement

will be resolved in a manner consistent

with the Administrative Disputes

Resolution Act, as amended, subject to

statutory and regulatory limits on the

Transmission Provider’s authority to

submit disputes to arbitration.

12.4 Rights Under The Federal

Power Act: Nothing in this section shall

restrict the rights of any party to file a

Complaint with the Commission under

relevant provisions of the Federal Power

Act.

Part II. Point-to-Point Transmission

Service

Preamble

The Transmission Provider will

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

the applicable terms and conditions of

this Tariff. Point-To-Point Transmission

Service is for the receipt of capacity and

energy at designated Point(s) of Receipt

and the transmission of such capacity

and energy to designated Point(s) of

Delivery.

13 Nature of Firm Point-To-Point

Transmission Service

13.1 Term: The minimum term of

Firm Point-To-Point Transmission

Service shall be one day and the

maximum term shall be specified in the

Service Agreement.

13.2 Reservation Priority: Long-Term

Firm Point-To-Point Transmission

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

chronological sequence in which each

Transmission Customer reserved

service. Reservations for Short-Term

Firm Point-To-Point Transmission

Service will be conditional based upon

the length of the requested transaction.

If the Transmission System becomes

oversubscribed, requests for longer term

service may preempt requests for shorter

term service up to the following

deadlines; one day before the

commencement of daily service, one

week before the commencement of

weekly service, and one month before

the commencement of monthly service.

Before the conditional reservation

deadline, if available transmission

capability is insufficient to satisfy all

Applications, an Eligible Customer with

a reservation for shorter term service has

the right of first refusal to match any

longer term reservation before losing its

reservation priority. A longer term

competing request for Short-Term Firm

Point-To-Point Transmission Service

will be granted if the Eligible Customer

with the right of first refusal does not

agree to match the competing request

within 24 hours (or earlier if necessary

to comply with the scheduling

deadlines provided in Section 13.8)

from being notified by the Transmission

Provider of a longer-term competing

request for Short-Term Firm Point-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 B) 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, and subject to the Transmission

Provider’s authority under Federal law

to complete the expansion or upgrade.

The Transmission Customer must agree

to compensate the Transmission

Provider in advance for any necessary

transmission facility additions pursuant

to the terms of Section 27. To the extent

the Transmission Provider can relieve

any system constraint more

economically by redispatching the

Transmission Provider’s resources than

through constructing Network

Upgrades, it shall do so, provided that

the Eligible Customer agrees to

compensate the Transmission Provider

pursuant to the terms of Section 27. Any

redispatch, Network Upgrade or Direct

Assignment Facilities costs to be

charged to the Transmission Customer

on an incremental basis under the Tariff

will be specified in the Service

Agreement or a separate agreement, as

appropriate, prior to initiating service.

13.6 Curtailment of Firm

Transmission Service: In the event that

a Curtailment on the Transmission

Provider’s Transmission System, or a

portion thereof, is required to maintain

reliable operation of such system,

Curtailments will be made on a nondiscriminatory 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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 495

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-ToPoint Transmission Service: Schedules

for the Transmission Customer’s Firm

Point-To-Point Transmission Service

must be submitted to the Transmission

Provider no later than 2:00 p.m. of the

day prior to commencement of such

service. Schedules submitted after 2:00

p.m. will be accommodated, if

practicable. Hour-to-hour schedules of

any capacity and energy that is to be

delivered must be stated in increments

of 1,000 kW per hour. Transmission

Customers within the Transmission

Provider’s service area with multiple

requests for Transmission Service at a

Point of Receipt, each of which is under

1,000 kW per hour, may consolidate

their service requests at a common point

of receipt into units of 1,000 kW per

hour for scheduling and billing

purposes.

Scheduling changes will be permitted

up to twenty (20) minutes before the

start of the next clock hour provided

that the Delivering Party and Receiving

Party also agree to the schedule

modification. The Transmission

Provider will furnish to the Delivering

Party’s system operator, hour-to-hour

schedules equal to those furnished by

the Receiving Party (unless reduced for

losses) and shall deliver the capacity

and energy provided by such schedules.

Should the Transmission Customer,

Delivering Party or Receiving Party

revise or terminate any schedule, such

party shall immediately notify the

Transmission Provider, and the

Transmission Provider shall have the

right to adjust accordingly the schedule

for capacity and energy to be received

and to be delivered.

14 Nature of Non-Firm Point-To-Point

Transmission Service

14.1 Term: Non-Firm Point-To-Point

Transmission Service will be available

for periods ranging from one (1) hour to

one (1) month. However, a Purchaser of

Non-Firm Point-To-Point Transmission

Service will be entitled to reserve a

sequential term of service (such as a

sequential monthly term without having

to wait for the initial term to expire

before requesting another monthly term)

so that the total time period for which

the reservation applies is greater than

one month, subject to the requirements

of Section 18.3.

14.2 Reservation Priority: Non-Firm

Point-To-Point Transmission Service

shall be available from transmission

capability in excess of that needed for

reliable service to Native Load

Customers, Network Customers, and

other Transmission Customers taking

Long-Term and Short-Term Firm PointTo-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 ThirdParty Sales.

14.4 Service Agreements: The

Transmission Provider shall offer a

standard form Non-Firm Point-To-Point

Transmission Service Agreement

(Attachment B) to an Eligible Customer

when it first submits a Completed
496 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

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

the Tariff.

14.5 Classification of Non-Firm

Point-To-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 non-firm 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-To-Point

Transmission Service must be submitted

to the Transmission Provider no later

than 2:00 p.m. of the day prior to

commencement of such service.

Schedules submitted after 2:00 p.m. will

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

be delivered must be stated in

increments of 1,000 kW per hour.

Transmission Customers within the

Transmission Provider’s service area

with multiple requests for Transmission

Service at a Point of Receipt, each of

which is under 1,000 kW per hour, may

consolidate their schedules at a

common Point of Receipt into units of

1,000 kW per hour. Scheduling changes

will be permitted up to twenty (20)

minutes before the start of the next

clock hour provided that the Delivering

Party and Receiving Party also agree to

the schedule modification. The

Transmission Provider will furnish to

the Delivering Party’s system operator,

hour-to-hour schedules equal to those

furnished by the Receiving Party (unless

reduced for losses) and shall deliver the

capacity and energy provided by such

schedules. Should the Transmission

Customer, Delivering Party or Receiving

Party revise or terminate any schedule,

such party shall immediately notify the

Transmission Provider, and the

Transmission Provider shall have the

right to adjust accordingly the schedule

for capacity and energy to be received

and to be delivered.

14.7 Curtailment or Interruption of

Service: The Transmission Provider

reserves the right to Curtail, in whole or

in part, Non-Firm Point-To-Point

Transmission Service provided under

the Tariff for reliability reasons when an

emergency or other unforeseen

condition threatens to impair or degrade

the reliability of its Transmission

System. The Transmission Provider

reserves the right to Interrupt, in whole

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

Transmission Service provided under

the Tariff for economic reasons in order

to accommodate (1) a request for Firm

Transmission Service, (2) a request for

Non-Firm Point-To-Point Transmission

Service of greater duration, (3) a request

for Non-Firm Point-To-Point

Transmission Service of equal duration

with a higher price, or (4) transmission

service for Network Customers from

non-designated resources. The

Transmission Provider also will

discontinue or reduce service to the

Transmission Customer to the extent

that deliveries for transmission are

discontinued or reduced at the Point(s)

of Receipt. Where required,

Curtailments or Interruptions will be

made on a non-discriminatory basis to

the transaction(s) that effectively relieve

the constraint; however, Non-Firm

Point-To-Point Transmission Service

shall be subordinate to Firm

Transmission Service. If multiple

transactions require Curtailment or

Interruption, to the extent practicable

and consistent with Good Utility

Practice, Curtailments or Interruptions

will be made to transactions of the

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

transactions will be Curtailed or

Interrupted before daily non-firm

transactions and daily non-firm

transactions will be Curtailed or

Interrupted before weekly non-firm

transactions). Transmission service for

Network Customers from resources

other than designated Network

Resources will have a higher priority

than any Non-Firm Point-To-Point

Transmission Service under the Tariff.

Non-Firm Point-To-Point Transmission

Service over secondary Point(s) of

Receipt and Point(s) of Delivery will

have a lower priority than any Non-Firm

Point-To-Point Transmission Service

under the Tariff. The Transmission

Provider will provide advance notice of

Curtailment or Interruption where such

notice can be provided consistent with

Good Utility Practice.

15 Service Availability

15.1 General Conditions: The

Transmission Provider will provide

Firm and Non-Firm Point-To-Point

Transmission Service over, on or across

its Transmission System to any

Transmission Customer that has met the

requirements of Section 16.

15.2 Determination of Available

Transmission Capability: A description

of the Transmission Provider’s specific

methodology for assessing available

transmission capability posted on the

Transmission 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-ToPoint Transmission Service cannot agree

on all the terms and conditions of the

Point-To-Point Service Agreement, the

Transmission Provider shall commence

providing Transmission Service subject

to the Transmission Customer agreeing

to (i) compensate the Transmission

Provider at the existing rate placed in

effect pursuant to Federal law,

regulations, and policies, and (ii)

comply with the terms and conditions

of the Tariff including paying the

appropriate processing fees in

accordance with the terms of Section

17.3. If the Transmission Customer

cannot accept all of the terms and

conditions of the offered Service

Agreement, the Transmission Customer

may request resolution of the

unacceptable terms and conditions

under Section 12, Dispute Resolution

Procedures, of the Tariff. Any changes

resulting from the dispute resolution

procedures will be effective upon the

date of initial service.

15.4 Obligation to Provide

Transmission Service that Requires

Expansion or Modification of the

Transmission System: If the

Transmission Provider determines that

it cannot accommodate a Completed

Application for Firm Point-To-Point

Transmission Service because of

insufficient capability on its

Transmission System, the Transmission

Provider will use due diligence to

expand or modify its Transmission

System to provide the requested Firm

Transmission Service, provided the

Transmission Customer agrees to

compensate the Transmission Provider

in advance for such costs pursuant to

the terms of Section 27. The
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 497

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 Transmission Provider’s rate

schedule for transmission service, and

may be adjusted, from time to time, in

accordance with the results of periodic

studies.

16 Transmission Customer

Responsibilities

16.1 Conditions Required of

Transmission Customers: Point-ToPoint Transmission Service shall be

provided by the Transmission Provider

only if the following conditions are

satisfied by the Transmission Customer:

a. The Transmission Customer has

pending a Completed Application for

service;

b. The Transmission Customer meets

the creditworthiness criteria set forth in

Section 11;

c. The Transmission Customer will

have arrangements in place for any

other transmission service necessary to

effect the delivery from the generating

source to the Transmission Provider

prior to the time service under Part II of

the Tariff commences;

d. The Transmission Customer agrees

to pay for any facilities constructed and

chargeable to such Transmission

Customer under Part II of the Tariff,

whether or not the Transmission

Customer takes service for the full term

of its reservation; and

e. The Transmission Customer has

executed a Point-To-Point Service

Agreement or has agreed to receive

service pursuant to Section 15.3.

16.2 Transmission Customer

Responsibility for Third-Party

Arrangements: Any scheduling

arrangements that may be required by

other electric systems shall be the

responsibility of the Transmission

Customer requesting service. The

Transmission Customer shall provide,

unless waived by the Transmission

Provider, notification to the

Transmission Provider identifying such

systems and authorizing them to

schedule the capacity and energy to be

transmitted by the Transmission

Provider pursuant to Part II of the Tariff

on behalf of the Receiving Party at the

Point of Delivery or the Delivering Party

at the Point of Receipt. However, the

Transmission Provider will undertake

reasonable efforts to assist the

Transmission Customer in making such

arrangements, including, without

limitation, providing any information or

data required by such other electric

system pursuant to Good Utility

Practice.

17 Procedures for Arranging Firm

Point-To-Point Transmission Service

17.1 Application: A request for Firm

Point-To-Point Transmission Service for

periods of one year or longer must

contain a written Application to

Administrator, Southwestern Power

Administration, One West Third Street,

Suite 1400, Tulsa, Oklahoma 74103, at

least sixty (60) days in advance of the

calendar month in which service is to

commence. The Transmission Provider

will consider requests for such firm

service on shorter notice when feasible.

Requests for firm service for periods of

less than one year shall be subject to

expedited procedures that shall be

negotiated between the Parties within

the time constraints provided in Section

17.5. All Firm Point-To-Point

Transmission Service requests should

be submitted by entering the

information listed below on the

Transmission Provider’s OASIS. Prior to

implementation of the Transmission

Provider’s OASIS, a Completed

Application may be submitted by (i)

transmitting the required information to

the Transmission Provider by telefax, or

(ii) providing the information by

telephone over the Transmission

Provider’s time-recorded telephone line.

Each of these methods will provide a

time-stamped record for establishing the

priority of the Application.

17.2Completed 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; and

(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 nonrefundable processing fee of $300

for all requests for Firm Transmission

Service of one year or longer. 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
498 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

(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 PointTo-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 nonrefundable annual reservation fee equal

to one-month’s charge for Firm

Transmission Service for each year or

fraction thereof. If during any extension

for the commencement of service an

Eligible Customer submits a Completed

Application for Firm Transmission

Service, and such request can be

satisfied only by releasing all or part of

the Transmission Customer’s Reserved

Capacity, the original Reserved Capacity

will be released unless the following

condition is satisfied. Within thirty (30)

days, the original Transmission

Customer agrees to pay the Firm PointTo-Point transmission rate for its

Reserved Capacity concurrent with the

new Service Commencement Date. In

the event the Transmission Customer

elects to release the Reserved Capacity,

the reservation fees or portions thereof

previously paid will be forfeited.

18 Procedures for Arranging Non-Firm

Point-To-Point Transmission Service

18.1 Application: Eligible Customers

seeking Non-Firm Point-To-Point

Transmission Service must submit a

Completed Application to the

Transmission Provider. Applications

should be submitted by entering the

information listed below on the

Transmission Provider’s OASIS. Prior to

implementation of the Transmission

Provider’s OASIS, a Completed

Application may be submitted by (i)

transmitting the required information to

the Transmission Provider by telefax, or

(ii) providing the information by

telephone over the Transmission

Provider’s 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.

18.4 Determination of Available

Transmission Capability: Following

receipt of a tendered schedule the

Transmission Provider will make a

determination on a non-discriminatory

basis of available transmission

capability pursuant to Section 15.2.

Such determination shall be made as

soon as reasonably practicable after

receipt, but not later than the following

time periods for the following terms of

service: (i) thirty (30) minutes for hourly

service, (ii) thirty (30) minutes for daily

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

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

monthly service.

19 Additional Study Procedures for

Firm Point-to-Point Transmission

Service Requests

19.1 Notice of Need for System

Impact Study: After receiving a request

for service, the Transmission Provider

shall determine on a non-discriminatory

basis whether a System Impact Study is

needed. A description of the

Transmission Provider’s methodology

for completing a System Impact Study is

provided in Attachment D. If the

Transmission Provider determines that a

System Impact Study is necessary to

accommodate the requested service, it
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 499

shall so inform the Eligible Customer, as

soon as practicable. In such cases, the

Transmission Provider shall within

thirty (30) days of receipt of a

Completed Application, tender a System

Impact Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

System Impact Study. For a service

request to remain a Completed

Application, the Eligible Customer shall

execute the System Impact Study

Agreement and return it to the

Transmission Provider within fifteen

(15) days. If the Eligible Customer elects

not to execute the System Impact Study

Agreement, its application shall be

deemed withdrawn.

19.2 System Impact Study

Agreement and Compensation: (i) The

System Impact Study Agreement will

clearly specify the Transmission

Provider’s estimate of the actual cost,

and time for completion of the System

Impact Study. The charge will not

exceed the actual cost of the study. In

performing the System Impact Study,

the Transmission Provider shall rely, to

the extent reasonably practicable, on

existing transmission planning studies.

The Eligible Customer will not be

assessed a charge for such existing

studies; however, the Eligible Customer

will be responsible for charges

associated with any modifications to

existing planning studies that are

reasonably necessary to evaluate the

impact of the Eligible Customer’s

request for service on the Transmission

System.

(ii) If, in response to multiple Eligible

Customers requesting service in relation

to the same competitive solicitation, a

single System Impact Study is sufficient

for the Transmission Provider to

accommodate the requests for service,

the costs of that study shall be pro-rated

among the Eligible Customers.

(iii) For System Impact Studies that

the Transmission Provider conducts on

its own behalf, the Transmission

Provider shall record the cost of the

System Impact Studies pursuant to

Section 8.

19.3 System Impact Study

Procedures: Upon receipt of an executed

System Impact Study Agreement, the

Transmission Provider will use due

diligence to complete the required

System Impact Study within a sixty (60)

day period. The System Impact Study

shall identify any system constraints

and redispatch options, additional

Direct Assignment Facilities or Network

Upgrades required to provide the

requested service. In the event that the

Transmission Provider is unable to

complete the required System Impact

Study within such time period, it shall

so notify the Eligible Customer and

provide an estimated completion date

along with an explanation of the reasons

why additional time is required to

complete the required studies. A copy of

the completed System Impact Study and

related work papers shall be made

available to the Eligible Customer. The

Transmission Provider will use the

same due diligence in completing the

System Impact Study for an Eligible

Customer as it uses when completing

studies for itself. The Transmission

Provider shall notify the Eligible

Customer immediately upon completion

of the System Impact Study if the

Transmission System will be adequate

to accommodate all or part of a request

for service or that no costs are likely to

be incurred for new transmission

facilities or upgrades. In order for a

request to remain a Completed

Application, within fifteen (15) days of

completion of the System Impact Study

the Eligible Customer must execute a

Service Agreement or request service

without an executed Service Agreement

pursuant to Section 15.3, or the

Application shall be deemed terminated

and withdrawn.

19.4 Facilities Study Procedures. If a

System Impact Study indicates that

additions or upgrades to the

Transmission System are needed to

supply the Eligible Customer’s service

request, the Transmission Provider,

within thirty (30) days of the

completion of the System Impact Study,

shall tender to the Eligible Customer a

Facilities Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

Facilities Study. For a service request to

remain a Completed Application, the

Eligible Customer shall execute the

Facilities Study Agreement and return it

to the Transmission Provider within

fifteen (15) days. If the Eligible

Customer elects not to execute the

Facilities Study Agreement, its

application shall be deemed withdrawn.

Upon receipt of an executed Facilities

Study Agreement, the Transmission

Provider will use due diligence to

complete the required Facilities Study

within a sixty (60) day period. If the

Transmission Provider is unable to

complete the Facilities Study in the

allotted time period, the Transmission

Provider shall notify the Transmission

Customer and provide an estimate of the

time needed to reach a final

determination along with an

explanation of the reasons that

additional time is required to complete

the study. When completed, the

Facilities Study will include a good

faith estimate of (i) the cost of Direct

Assignment Facilities to be charged to

the Transmission Customer, (ii) the

Transmission Customer’s appropriate

share of the cost of any required

Network Upgrades as determined

pursuant to the provisions of Part II of

the Tariff, and (iii) the time required to

complete such construction and initiate

the requested service. The Transmission

Customer shall pay the Transmission

Provider, in advance, the Transmission

Customer’s share of the costs of new

facilities or upgrades. The Transmission

Customer shall have thirty (30) days to

execute a construction agreement and a

Service Agreement and to provide the

advance payment or request service

without an executed Service Agreement

pursuant to Section 15.3, and 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 which 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-ToPoint 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 PointTo-Point Transmission Service, the

Transmission Provider nonetheless shall

be obligated to offer and provide the

portion of the requested Firm Point-ToPoint Transmission Service that can be

accommodated without addition of any
500 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

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.

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 NonFirm Point-To-Point Transmission

Service charge or executing a new

Service Agreement, subject to the

following conditions.

(a) Service provided over Secondary

Receipt and Delivery Points will be 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.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 501

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

Point-To-Point Transmission Service

provided to the Transmission Customer

at any time pursuant to this section

shall not exceed the Reserved Capacity

in the relevant Service Agreement under

which such services are provided.

(c) The Transmission Customer shall

retain its right to schedule Firm PointTo-Point Transmission Service at the

Receipt and Delivery Points specified in

the relevant Service Agreement in the

amount of its original capacity

reservation.

(d) Service over Secondary Receipt

and Delivery Points on a non-firm basis

shall not require the filing of an

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

Tariff. However, all other requirements

of Part II of the Tariff (except as to

transmission rates) shall apply to

transmission service on a non-firm basis

over Secondary Receipt and Delivery

Points.

22.2 Modifications on a Firm Basis:

Any request by a Transmission

Customer to modify Receipt and

Delivery Points on a firm basis shall be

treated as a new request for service in

accordance with Section 17 hereof

except that such Transmission Customer

shall not be obligated to pay any

additional application processing fee if

the capacity reservation does not exceed

the amount reserved in the existing

Service Agreement. While such new

request is pending, the Transmission

Customer shall retain its priority for

service at the existing firm Receipt and

Delivery Points specified in its Service

Agreement.

23 Sale or Assignment of Transmission

Service

23.1 Procedures for Assignment or

Transfer of Service: Subject to

Commission approval of any necessary

filings, a Transmission Customer may

sell, assign, or transfer all or a portion

of its rights under its Service

Agreement, but only to another Eligible

Customer (the Assignee). The

Transmission Customer that sells,

assigns or transfers its rights under its

Service Agreement is hereafter referred

to as the Reseller. Compensation to the

Reseller shall not exceed the higher of

(i) the original rate paid by the Reseller,

(ii) the Transmission Provider’s

maximum rate on file at the time of the

assignment, or (iii) the Reseller’s

opportunity cost capped at the

Transmission Provider’s cost of

expansion. If the Assignee does not

request any change in the Point(s) of

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

change in any other term or condition

set forth in the original Service

Agreement, the Assignee will receive

the same services as did the Reseller

and the priority of service for the

Assignee will be the same as that of the

Reseller. A Reseller should notify the

Transmission Provider as soon as

possible after any assignment or transfer

of service occurs but in any event,

notification must be provided prior to

any provision of service to the Assignee.

The Assignee will be subject to all terms

and conditions of the Tariff. If the

Assignee requests a change in service,

the reservation priority of service will

be determined by the Transmission

Provider pursuant to Section 13.2.

23.2 Limitations on Assignment or

Transfer of Service: If the Assignee

requests a change in the Point(s) of

Receipt or Point(s) of Delivery, or a

change in any other specifications set

forth in the original Service Agreement,

the Transmission Provider will consent

to such change subject to the provisions

of the Tariff, provided that the change

will not impair the operation and

reliability of the Transmission

Provider’s generation, transmission, or

distribution systems. The Assignee shall

compensate the Transmission Provider

in advance for performing any System

Impact Study needed to evaluate the

capability of the Transmission System

to accommodate the proposed change

and any additional costs resulting from

such change. The Reseller shall remain

liable for the performance of all

obligations under the Service

Agreement, except as specifically agreed

to by the Parties through an amendment

to the Service Agreement.

23.3 Information on Assignment or

Transfer of Service: In accordance with

Section 4, Resellers may use the

Transmission Provider’s OASIS to post

transmission capacity available for

resale.

24 Metering and Power Factor

Correction at Receipt and Delivery

Point(s)

24.1 Transmission Customer

Obligations: Unless otherwise agreed,

the Transmission Customer shall be

responsible for installing and

maintaining compatible metering and

communications equipment to

accurately account for the capacity and

energy being transmitted under Part II of

the Tariff and to communicate the

information to the Transmission

Provider. Such equipment shall remain

the property of the Transmission

Customer.

24.2 Transmission Provider Access

to Metering Data: The Transmission

Provider shall have access to metering

data, which may reasonably be required

to facilitate measurements and billing

under the Service Agreement.

24.3 Power Factor: Unless otherwise

agreed, the Transmission Customer is

required to maintain a power factor

within the same range as the

Transmission Provider pursuant to

Good Utility Practices. The power factor

requirements are specified in the

Transmission Provider’s rate schedule

for transmission service.

25 Compensation for Transmission

Service

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

provided in the Transmission Provider’s

rate schedule for transmission service

which is promulgated, and may be

modified, pursuant to applicable

Federal law, regulations, and policies.

The Transmission Provider shall use

Part II of the Tariff to make its ThirdParty Sales. The Transmission Provider

shall account for such use at the

applicable rates.

26 Stranded Cost Recovery

The Transmission Provider may seek

to recover stranded costs from the

Transmission Customer pursuant to this

Tariff in accordance with the terms,

conditions, and procedures set forth in

FERC Order No. 888, 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
502 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Transmission Service allows the

Network Customer to integrate,

economically dispatch and regulate its

current and planned Network Resources

to serve its Network Load in a manner

comparable to that in which the

Transmission Provider utilizes its

Transmission System to serve its Native

Load Customers. Network Integration

Transmission Service also may be used

by the Network Customer to deliver

economy energy purchases to its

Network Load from non-designated

resources on an as-available basis

without additional charge. Transmission

service for sales to non-designated loads

will be provided pursuant to the

applicable terms and conditions of Part

II of the Tariff.

28 Nature of Network Integration

Transmission Service

28.1 Scope of Service: Network

Integration Transmission Service is a

transmission service that allows

Network Customers to efficiently and

economically utilize their Network

Resources (as well as other nondesignated generation resources) to

serve their Network Load located in the

Transmission Provider’s Control Area

and any additional load that may be

designated pursuant to Section 31.3 of

the Tariff. The Network Customer taking

Network Integration Transmission

Service must obtain or provide

Ancillary Services pursuant to Section

3.

28.2 Transmission Provider

Responsibilities: The Transmission

Provider will plan, construct, operate

and maintain its Transmission System

in accordance with Good Utility

Practice in order to provide the Network

Customer with Network Integration

Transmission Service over the

Transmission Provider’s Transmission

System. The Transmission Provider, on

behalf of its Native Load Customers,

shall be required to designate resources

and loads in the same manner as any

Network Customer under Part III of the

Tariff. This information must be

consistent with the information used by

the Transmission Provider to calculate

available transmission capability. The

Transmission Provider shall include the

Network Customer’s Network Load in

its Transmission System planning and

shall, consistent with Good Utility

Practice, endeavor to construct and

place into service sufficient

transmission capacity to deliver the

Network Customer’s Network Resources

to serve its Network Load on a basis

comparable to the Transmission

Provider’s delivery of its own generating

and purchased resources to its Native

Load Customers. This obligation to

construct and place into service

sufficient transmission capacity to

deliver the Network Customer’s

Network Resources to serve its Network

Load is contingent upon the availability

to the Transmission Provider of

sufficient appropriations, when needed,

and the Transmission Customer’s

advanced funds.

28.3 Network Integration

Transmission Service: The

Transmission Provider will provide firm

transmission service over its

Transmission System to the Network

Customer for the delivery of capacity

and energy from its designated Network

Resources to service its Network Loads

on a basis that is comparable to the

Transmission Provider’s use of the

Transmission System to reliably serve

its Native Load Customers.

28.4 Secondary Service: The

Network Customer may use the

Transmission Provider’s Transmission

System to deliver energy to its Network

Loads from resources that have not been

designated as Network Resources. Such

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

Deliveries from resources other than

Network Resources will have a higher

priority than any Non-Firm Point-ToPoint Transmission Service under Part II

of the Tariff.

28.5 Real Power Losses: Real Power

Losses are associated with all

transmission service. The Transmission

Provider is not obligated to provide Real

Power Losses. The Network Customer is

responsible for replacing losses

associated with all transmission service

as calculated by the Transmission

Provider. The applicable Real Power

Loss factors are specified in the

Transmission Provider’s rate schedule

for transmission service, and may be

adjusted, from time to time, in

accordance with the results of periodic

studies.

28.6 Restrictions on Use of Service:

The Network Customer shall not use

Network Integration Transmission

Service for (i) sales of capacity and

energy to non-designated loads, or (ii)

direct or indirect provision of

transmission service by the Network

Customer to third parties. All Network

Customers taking Network Integration

Transmission Service shall use PointTo-Point Transmission Service under

Part II of the Tariff for any Third-Party

Sale which requires use of the

Transmission Provider’s Transmission

System.

29 Initiating Service

29.1 Condition Precedent for

Receiving Service: Subject to the terms

and conditions of Part III of the Tariff,

the Transmission Provider will provide

Network Integration Transmission

Service to any Eligible Customer

provided that (i) the Eligible Customer

completes an Application for service as

provided under Part III of the Tariff, (ii)

the Eligible Customer and the

Transmission Provider complete the

technical arrangements set forth in

Sections 29.3 and 29.4, (iii) the Eligible

Customer executes a Service Agreement

pursuant to Attachment F for service

under Part III of the Tariff or requests in

writing that the Transmission Provider

provide service without an executed

Service Agreement, and (iv) the Eligible

Customer executes a Network Operating

Agreement with the Transmission

Provider pursuant to Attachment G. If

the Transmission Provider and the

Network Customer cannot agree on all

the terms and conditions of the Network

Service Agreement, the Transmission

Provider shall commence providing

Network Integration Transmission

Service subject to the Network

Customer’s agreeing to (i) compensate

the Transmission Provider at the

existing rate placed in effect pursuant to

applicable Federal law, regulations, and

policies, 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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 503

Provider’s time-recorded telephone line.

Each of these methods will provide a

time-stamped record for establishing the

service priority of the Application. A

Completed Application for Network

Integration Transmission Service shall

include a non-refundable application

processing fee of $1,200. This fee does

not apply to costs to complete System

Impact Studies or Facility Studies or to

add new facilities. A Completed

Application shall provide all of the

information included in 18 CFR 2.20

including but not limited to the

following:

(i) The identity, address, telephone

number and facsimile number of the

party requesting service;

(ii) A statement that the party

requesting service is, or will be upon

commencement of service, an Eligible

Customer under the Tariff;

(iii) A description of the Network

Load at each delivery point. This

description should separately identify

and provide the Eligible Customer’s best

estimate of the total loads to be served

at each transmission voltage level, and

the loads to be served from each

Transmission Provider substation at the

same transmission voltage level. The

description should include a ten (10)

year forecast of summer and winter load

and resource requirements beginning

with the first year after the service is

scheduled to commence;

(iv) The amount and location of any

interruptible loads included in the

Network Load. This shall include the

summer and winter capacity

requirements for each interruptible load

(had such load not been interruptible),

that portion of the load subject to

interruption, the conditions under

which an interruption can be

implemented and any limitations on the

amount and frequency of interruptions.

An Eligible Customer should identify

the amount of interruptible customer

load (if any), included in the 10 year

load forecast provided in response to

(iii) above;

(v) A description of Network

Resources (current and 10-year

projection), which shall include, for

each Network Resource:

—Unit size and amount of capacity

from that unit to be designated as

Network Resource;

—VAR capability (both leading and

lagging) of all generators;

—Operating restrictions;

—Any periods of restricted operations

throughout the year;

—Maintenance schedules;

—Minimum loading level of unit;

—Normal operating level of unit;

—Any must-run unit designations

required for system reliability or

contract reasons;

—Approximate variable generating

cost ($/MWH) for redispatch

computations;

—Arrangements governing sale and

delivery of power to third parties from

generating facilities located in the

Transmission Provider Control Area,

where only a portion of unit output is

designated as a Network Resource;

—Description of purchased power

designated as a Network Resource

including source of supply, Control

Area location, transmission

arrangements and delivery point(s) to

the Transmission Provider’s

Transmission System;

(vi) Description of Eligible Customer’s

transmission system:

—Load flow and stability data, such

as real and reactive parts of the load,

lines, transformers, reactive devices and

load type, including normal and

emergency ratings of all transmission

equipment in a load flow format

compatible with that used by the

Transmission Provider;

—Operating restrictions needed for

reliability;

—Operating guides employed by

system operators;

—Contractual restrictions or

committed uses of the Eligible

Customer’s transmission system, other

than the Eligible Customer’s Network

Loads and Resources;

—Location of Network Resources

described in subsection (v) above;

—10-year projection of system

expansions or upgrades;

—Transmission System maps that

include any proposed expansions or

upgrades;

—Thermal ratings of Eligible

Customer’s Control Area ties with other

Control Areas; and

(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’s 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.

30 Network Resources

30.1 Designation of Network

Resources: Network Resources shall

include all generation owned,

purchased or leased by the Network

Customer designated to serve Network

Load under the Tariff. Network

Resources may not include resources, or

any portion thereof, that are committed

for sale to non-designated third party

load or otherwise cannot be called upon

to meet the Network Customer’s

Network Load on a noninterruptible

basis. Any owned or purchased

resources that were serving the Network

Customer’s loads under firm agreements

entered into on or before the Service
504 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Commencement Date shall initially be

designated as Network Resources until

the Network Customer terminates the

designation of such resources.

30.2 Designation of New Network

Resources: The Network Customer may

designate a new Network Resource by

providing the Transmission Provider

with as much advance notice as

practicable. A designation of a new

Network Resource must be made by a

request for modification of service

pursuant to an Application under

Section 29.

30.3 Termination of Network

Resources: The Network Customer may

terminate the designation of all or part

of a generating resource as a Network

Resource at any time but should provide

notification to the Transmission

Provider as soon as reasonably

practicable.

30.4 Operation of Network

Resources: The Network Customer shall

not operate its designated Network

Resources located in the Network

Customer’s or Transmission Provider’s

Control Area such that the output of

those facilities exceeds its designated

Network Load, plus non-firm sales

delivered pursuant to Part II of the

Tariff, plus losses. This limitation shall

not apply to changes in the operation of

a Transmission Customer’s Network

Resources at the request of the

Transmission Provider to respond to an

emergency or other unforeseen

condition which may impair or degrade

the reliability of the Transmission

System.

30.5 Network Customer Redispatch

Obligation: As a condition to receiving

Network Integration Transmission

Service, the Network Customer agrees to

redispatch its Network Resources as

requested by the Transmission Provider

pursuant to Section 33.2. To the extent

practical, the redispatch of resources

pursuant to this section shall be on a

least cost, nondiscriminatory basis

between all Network Customers, and the

Transmission Provider.

30.6 Transmission Arrangements for

Network Resources Not Physically

Interconnected With The Transmission

Provider: The Network Customer shall

be responsible for any arrangements

necessary to deliver capacity and energy

from a Network Resource not physically

interconnected with the Transmission

Provider’s Transmission System. The

Transmission Provider will undertake

reasonable efforts to assist the Network

Customer in obtaining such

arrangements, including without

limitation, providing any information or

data required by such other entity

pursuant to Good Utility Practice.

30.7 Limitation on Designation of

Network Resources: The Network

Customer must demonstrate that it owns

or has committed to purchase

generation pursuant to an executed

contract in order to designate a

generating resource as a Network

Resource. Alternatively, the Network

Customer may establish that execution

of a contract is contingent upon the

availability of transmission service

under Part III of the Tariff.

30.8 Use of Interface Capacity by the

Network Customer: There is no

limitation upon a Network Customer’s

use of the Transmission Provider’s

Transmission System at any particular

interface to integrate the Network

Customer’s Network Resources (or

substitute economy purchases) with its

Network Loads. However, a Network

Customer’s use of the Transmission

Provider’s total interface capacity with

other transmission systems may not

exceed the Network Customer’s Load.

30.9 Network Customer Owned

Transmission Facilities: The Network

Customer that owns existing

transmission facilities that are

integrated with the Transmission

Provider’s Transmission System may be

eligible to receive consideration either

through a billing credit or some other

mechanism. In order to receive such

consideration the Network Customer

must demonstrate that its transmission

facilities are integrated into the plans or

operations of the Transmission Provider

to serve its power and transmission

customers. For facilities constructed by

the Network Customer subsequent to the

Service Commencement Date under Part

III of the Tariff, the Network Customer

shall receive credit where such facilities

are jointly planned and installed in

coordination with the Transmission

Provider. Calculation of the credit shall

be addressed in either the Network

Customer’s Service Agreement or any

other agreement between the Parties.

31 Designation of Network Load

31.1 Network Load: The Network

Customer must designate the individual

Network Loads on whose behalf the

Transmission Provider will provide

Network Integration Transmission

Service. The Network Loads shall be

specified in the Service Agreement.

31.2 New Network Loads Connected

With the Transmission Provider: The

Network Customer shall provide the

Transmission Provider with as much

advance notice as reasonably practicable

of the designation of new Network Load

that will be added to its Transmission

System. A designation of new Network

Load must be made through a

modification of service pursuant to a

new Application. The Transmission

Provider will use due diligence to

install any transmission facilities

required to interconnect a new Network

Load designated by the Network

Customer. The costs of new facilities

required to interconnect a new Network

Load shall be determined in accordance

with the procedures provided in Section

32.4 and shall be charged to the

Network Customer in accordance with

Commission policies.

31.3 Network Load Not Physically

Interconnected with the Transmission

Provider: This section applies to both

initial designation pursuant to Section

31.1 and the subsequent addition of new

Network Load not physically

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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 505

obligation to refund any advance of

funds expended for purposes of

providing facilities for a Network

Customer. However, upon receipt of a

Network Customer’s written notice of

such a cancellation or delay, the

Transmission Provider will use the

same reasonable efforts to mitigate the

costs and charges owed to the

Transmission Provider as it would to

reduce its own costs and charges.

31.6 Annual Load and Resource

Information Updates: The Network

Customer shall provide the

Transmission Provider with annual

updates of Network Load and Network

Resource forecasts consistent with those

included in its Application for Network

Integration Transmission Service under

Part III of the Tariff. The Network

Customer also shall provide the

Transmission Provider with timely

written notice of material changes in

any other information provided in its

Application relating to the Network

Customer’s Network Load, Network

Resources, its transmission system or

other aspects of its facilities or

operations affecting the Transmission

Provider’s ability to provide reliable

service.

32 Additional Study Procedures for

Network Integration Transmission

Service Requests

32.1 Notice of Need for System

Impact Study: After receiving a request

for service, the Transmission Provider

shall determine on a non-discriminatory

basis whether a System Impact Study is

needed. A description of the

Transmission Provider’s methodology

for completing a System Impact Study is

provided in Attachment D. If the

Transmission Provider determines that a

System Impact Study is necessary to

accommodate the requested service, it

shall so inform the Eligible Customer, as

soon as practicable. In such cases, the

Transmission Provider shall within

thirty (30) days of receipt of a

Completed Application, tender a System

Impact Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

System Impact Study. For a service

request to remain a Completed

Application, the Eligible Customer shall

execute the System Impact Study

Agreement and return it to the

Transmission Provider within fifteen

(15) days. If the Eligible Customer elects

not to execute the System Impact Study

Agreement, its Application shall be

deemed withdrawn.

32.2 System Impact Study

Agreement and Compensation: (i) The

System Impact Study Agreement will

clearly specify the Transmission

Provider’s estimate of the actual cost,

and time for completion of the System

Impact Study. The charge shall not

exceed the actual cost of the study. In

performing the System Impact Study,

the Transmission Provider shall rely, to

the extent reasonably practicable, on

existing transmission planning studies.

The Eligible Customer will not be

assessed a charge for such existing

studies; however, the Eligible Customer

will be responsible for charges

associated with any modifications to

existing planning studies that are

reasonably necessary to evaluate the

impact of the Eligible Customer’s

request for service on the Transmission

System.

(ii) If in response to multiple Eligible

Customers requesting service in relation

to the same competitive solicitation, a

single System Impact Study is sufficient

for the Transmission Provider to

accommodate the service requests, the

costs of that study shall be pro-rated

among the Eligible Customers.

(iii) For System Impact Studies that

the Transmission Provider conducts on

its own behalf, the Transmission

Provider shall record the cost of the

System Impact Studies pursuant to

Section 8.

32.3 System Impact Study

Procedures: Upon receipt of an executed

System Impact Study Agreement, the

Transmission Provider will use due

diligence to complete the required

System Impact Study within a sixty (60)

day period. The System Impact Study

shall identify any system constraints

and redispatch options, additional

Direct Assignment Facilities or Network

Upgrades required to provide the

requested service. In the event that the

Transmission Provider is unable to

complete the required System Impact

Study within such time period, it shall

so notify the Eligible Customer and

provide an estimated completion date

along with an explanation of the reasons

why additional time is required to

complete the required studies. A copy of

the completed System Impact Study and

related work papers shall be made

available to the Eligible Customer. The

Transmission Provider will use the

same due diligence in completing the

System Impact Study for an Eligible

Customer as it uses when completing

studies for itself. The Transmission

Provider shall notify the Eligible

Customer immediately upon completion

of the System Impact Study if the

Transmission System will be adequate

to accommodate all or part of a request

for service or that no costs are likely to

be incurred for new transmission

facilities or upgrades. In order for a

request to remain a Completed

Application, within fifteen (15) days of

completion of the System Impact Study

the Eligible Customer must execute a

Service Agreement or request service

without an executed Service Agreement

pursuant to Section 29.1, or the

Application shall be deemed terminated

and withdrawn.

32.4 Facilities Study Procedures: If a

System Impact Study indicates that

additions or upgrades to the

Transmission System are needed to

supply the Eligible Customer’s service

request, the Transmission Provider,

within thirty (30) days of the

completion of the System Impact Study,

shall tender to the Eligible Customer a

Facilities Study Agreement pursuant to

which the Eligible Customer shall agree

to advance funds to the Transmission

Provider for performing the required

Facilities Study. For a service request to

remain a Completed Application, the

Eligible Customer shall execute the

Facilities Study Agreement and return it

to the Transmission Provider within

fifteen (15) days. If the Eligible

Customer elects not to execute the

Facilities Study Agreement, its

Application shall be deemed withdrawn

and its deposit shall be returned. Upon

receipt of an executed Facilities Study

Agreement, the Transmission Provider

will use due diligence to complete the

required Facilities Study within a sixty

(60) day period. If the Transmission

Provider is unable to complete the

Facilities Study in the allotted time

period, the Transmission Provider shall

notify the Eligible Customer and

provide an estimate of the time needed

to reach a final determination along

with an explanation of the reasons that

additional time is required to complete

the study. When completed, the

Facilities Study will include a good

faith estimate of (i) the cost of Direct

Assignment Facilities to be charged to

the Eligible Customer, (ii) the Eligible

Customer’s appropriate share of the cost

of any required Network Upgrades, and

(iii) the time required to complete such

construction and initiate the requested

service. The Eligible Customer shall

advance funds to the Transmission

Provider for the construction of new

facilities, and such advance and

construction shall be provided for in a

separate agreement. If the construction

of new facilities requires the

expenditure of Transmission Provider

funds, such construction shall be

contingent upon the availability of

appropriated funds. The Eligible

Customer shall have thirty (30) days to

execute a construction agreement and a

Service Agreement or request service
506 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

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 which 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 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 practice, along

with the following:

34.1 Monthly Demand Charge: The Network

Customer shall pay a monthly Demand

Charge, which shall be determined by

multiplying its Load Ratio Share times one

twelfth (1⁄12) of the Transmission Provider’s

Annual Transmission Revenue Requirement

specified in Schedule H.

34.2 Determination of Network

Customer’s Monthly Network Load: The

Network Customer’s Monthly Network

Load is its hourly load (including its

designated Network Load not physically

interconnected with the Transmission

Provider under Section 31.3) coincident

with the Transmission Provider’s

Monthly Transmission System Peak.

34.3 Determination of Transmission

Provider’s Monthly Transmission

System Load: The Transmission

Provider’s Monthly Transmission

System Load is the Transmission

Provider’s Monthly Transmission

System Peak minus the coincident peak

usage of all Firm Point-To-Point

Transmission Service customers

pursuant to Part II of this Tariff plus the

Reserved Capacity of all Firm Point-ToPoint Transmission Service customers.

34.4 Redispatch Charge: The

Network Customer shall pay a Load

Ratio Share of any redispatch costs

allocated between the Network

Customer and the Transmission

Provider pursuant to Section 33. To the

extent that the Transmission Provider

incurs an obligation to the Network

Customer for redispatch costs in

accordance with Section 33, such

amounts shall be credited against the

Network Customer’s bill for the

applicable month.

34.5 Stranded Cost Recovery: The

Transmission Provider may seek to

recover stranded costs from the Network
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 507

Customer pursuant to this Tariff in

accordance with the terms, conditions

and procedures set forth in FERC Order

No. 888, in a manner consistent with

applicable Federal law and regulations.

35 Operating Arrangements

35.1 Operation Under The Network

Operating Agreement: The Network

Customer shall plan, construct, operate

and maintain its facilities in accordance

with Good Utility Practice and in

conformance with the Network

Operating Agreement.

35.2 Network Operating Agreement:

The terms and conditions under which

the Network Customer shall operate its

facilities and the technical and

operational matters associated with the

implementation of Part III of the Tariff

shall be specified in the Network

Operating Agreement. The Network

Operating Agreement shall provide for

the Parties to (i) operate and maintain

equipment necessary for integrating the

Network Customer within the

Transmission Provider’s Transmission

System (including, but not limited to,

remote terminal units, metering,

communications equipment and

relaying equipment), (ii) transfer data

between the Transmission Provider and

the Network Customer (including, but

not limited to, heat rates and

operational characteristics of Network

Resources, generation schedules for

units outside the Transmission

Provider’s Transmission System,

interchange schedules, unit outputs for

redispatch required under Section 33,

voltage schedules, loss factors and other

real time data), (iii) use software

programs required for data links and

constraint dispatching, (iv) exchange

data on forecasted loads and resources

necessary for long-term planning, and

(v) address any other technical and

operational considerations required for

implementation of Part III of the Tariff,

including scheduling protocols. The

Network Operating Agreement will

recognize that the Network Customer

shall either (i) operate as a Control Area

under applicable guidelines of the North

American Electric Reliability Council

(NERC) and the [applicable regional

reliability council], (ii) satisfy its

Control Area requirements, including all

necessary Ancillary Services, by

contracting with the Transmission

Provider, or (iii) satisfy its Control Area

requirements, including all necessary

Ancillary Services, by contracting with

another entity, consistent with Good

Utility Practice, which satisfies NERC

and the [applicable regional reliability

council] requirements. The

Transmission Provider shall not

unreasonably refuse to accept

contractual arrangements with another

entity for Ancillary Services. The

Network Operating Agreement is

included in Attachment G.

35.3 Network Operating Committee

A Network Operating Committee

(Committee) shall be established to

coordinate operating criteria for the

Parties’ respective responsibilities under

the Network Operating Agreement. Each

Network Customer shall be entitled to

have at least one representative on the

Committee. The Committee shall meet

from time to time as need requires, but

no less than once each calendar year.

Schedule 1

Scheduling, System Control and

Dispatch Service

This service is required to schedule

the movement of power through, out of,

within, or into a Control Area. This

service can be provided only by the

operator of the Control Area in which

the transmission facilities used for

transmission service are located.

Scheduling, System Control and

Dispatch Service is provided directly by

the Transmission Provider (if the

Transmission Provider is the Control

Area Operator) or indirectly by the

Transmission Provider making

arrangements with the Control Area

operator that performs this service for

the Transmission Provider’s

Transmission System. The Transmission

Customer must purchase this service

from the Transmission Provider or the

Control Area operator. The charges for

Scheduling, System Control and

Dispatch Service are to be based on the

rates referred to below. To the extent the

Control Area operator performs this

service for the Transmission Provider,

charges to the Transmission Customer

are to reflect only a pass-through of the

costs charged to the Transmission

Provider by that Control Area operator.

The charges for Scheduling, System

Control and Dispatch Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Scheduling,

System Control and Dispatch Service

upon written notice to the Transmission

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 is to be

provided directly by the Transmission

Provider (if the Transmission Provider

is the Control Area operator) or

indirectly by the Transmission Provider

making arrangements with the Control

Area operator that performs this service

for the Transmission Provider’s

Transmission System. The Transmission

Customer must purchase this service

from the Transmission Provider or the

Control Area operator. The charges for

such service will be based upon the

rates referred to below. To the extent the

Control Area operator performs this

service for the Transmission Provider,

charges to the Transmission Customer

are to reflect only a pass-through of the

costs charged to the Transmission

Provider by the Control Area Operator.

The charges for Reactive Supply and

Voltage Control from Generation

Sources Service are set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations, and policies.

The Transmission Provider may

modify the charges for Reactive Supply

and Voltage Control from Generation

Sources Service upon written notice to
508 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

the Transmission Customer. Any change

to the charges to the Transmission

Customer for Reactive Supply and

Voltage Control from Generation

Sources Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 3

Regulation and Frequency Response

Service

Regulation and Frequency Response

Service is necessary to provide for the

continuous balancing of resources

(generation and interchange) with load

and for maintaining scheduled

interconnection frequency at sixty

cycles per second (60 Hz). Regulation

and Frequency Response Service is

accomplished by committing on-line

generation whose output is raised or

lowered (predominantly through the use

of automatic generating control

equipment) as necessary to follow the

moment-by-moment changes in load.

The obligation to maintain this balance

between resources and load lies with

the Transmission Provider (or the

Control Area operator that performs this

function for the Transmission Provider).

The Transmission Provider must offer

this service when the transmission

service is used to serve load within its

Control Area. The Transmission

Customer must either purchase this

service from the Transmission Provider

or make alternative comparable

arrangements to satisfy its Regulation

and Frequency Response Service

obligation. The charges for Regulation

and Frequency Response Service are

referred to below. The amount of

Regulation and Frequency Response

Service may be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The charges for Regulation and

Frequency Response Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Regulation and

Frequency Response Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Regulation and Frequency Response

Service shall be as set forth in a

subsequent rate schedule promulgated

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 4

Energy Imbalance Service

Energy Imbalance Service is provided

when a difference occurs between the

scheduled and the actual delivery of

energy to a load located within a

Control Area over a single hour. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either obtain this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Energy Imbalance Service

obligation. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The Transmission Provider shall

establish a deviation band of +/¥1.5

percent (with a minimum of 2 MW) of

the scheduled transaction to be applied

hourly to any energy imbalance that

occurs as a result of the Transmission

Customer’s scheduled transaction(s).

Parties should attempt to eliminate

energy imbalances within the limits of

the deviation band within thirty (30)

days or within such other reasonable

period of time as is generally accepted

in the region and consistently adhered

to by the Transmission Provider. If an

energy imbalance is not corrected

within thirty (30) days or a reasonable

period of time that is generally accepted

in the region and consistently adhered

to by the Transmission Provider, the

Transmission Customer will

compensate the Transmission Provider

for such service. Energy imbalances

outside the deviation band will be

subject to charges to be specified by the

Transmission Provider. Compensation

for Energy Imbalance Service will be as

set forth below.

The compensation for Energy

Imbalance Service is set forth in the

appropriate rate schedule attached to

and made part of the applicable Service

Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations, and policies.

The Transmission Provider may

modify the compensation for Energy

Imbalance Service upon written notice

to the Transmission Customer. Any

change to the compensation to the

Transmission Customer for Energy

Imbalance Service shall be as set forth

in a subsequent rate schedule

promulgated pursuant to the above

procedures and attached to and made

part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Schedule 5

Operating Reserve—Spinning Reserve

Service

Spinning Reserve Service is needed to

serve load immediately in the event of

a system contingency. Spinning Reserve

Service may be provided by generating

units that are on-line and loaded at less

than maximum output. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Spinning Reserve Service

obligation. The charges for Spinning

Reserve Service are referred to below.

The amount of Spinning Reserve

Service may be set forth in the Service

Agreement. To the extent the Control

Area operator performs this service for

the Transmission Provider, charges to

the Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The charges for Operating Reserve—

Spinning Reserve Service are set forth in

the appropriate rate schedule attached

to and made part of the applicable

Service Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations, and policies.

The Transmission Provider may

modify the charges for Operating

Reserve—Spinning Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Spinning Reserve

Service shall be as set forth in a

subsequent rate schedule promulgated
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 509

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 6

Operating Reserve—Supplemental

Reserve Service

Supplemental Reserve Service is

needed to serve load in the event of a

system contingency; however, it is not

available immediately to serve load but

rather within a short period of time.

Supplemental Reserve Service may be

provided by generating units that are

on-line but unloaded, by quick-start

generation or by interruptible load. The

Transmission Provider must offer this

service when the transmission service is

used to serve load within its Control

Area. The Transmission Customer must

either purchase this service from the

Transmission Provider or make

alternative comparable arrangements to

satisfy its Supplemental Reserve Service

obligation. The charges for

Supplemental Reserve Service are

referred to below. The amount of

Supplemental Reserve Service may be

set forth in the Service Agreement. To

the extent the Control Area operator

performs this service for the

Transmission Provider, charges to the

Transmission Customer are to reflect

only a pass-through of the costs charged

to the Transmission Provider by that

Control Area operator.

The charges for Operating Reserve—

Supplemental Reserve Service are set

forth in the appropriate rate schedule

attached to and made part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Operating

Reserve—Supplemental Reserve Service

upon written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for

Operating Reserve—Supplemental

Reserve Service shall be as set forth in

a subsequent rate schedule promulgated

pursuant to the above procedures and

attached to and made part of the

applicable Service Agreement. The

Transmission Provider shall charge the

Transmission Customer in accordance

with the rate then in effect.

Schedule 7

Long-Term Firm and Short-Term Firm

Point-to-Point Transmission Service

The Transmission Customer shall

compensate the Transmission Provider

each month for Reserved Capacity

pursuant to its rate schedule for Firm

Point-to-Point Transmission Service

attached to and made a part of the

applicable Service Agreement. The rates

or rate methodology used to calculate

the charges for service under this

schedule were promulgated and may be

modified pursuant to applicable Federal

laws, regulations, and policies.

The Transmission Provider may

modify the charges for Firm Point-toPoint Transmission Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for Firm

Point-to-Point Transmission Service

shall be as set forth in a subsequent rate

schedule promulgated pursuant to the

above procedures and attached to and

made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts (including requests for use by

one’s wholesale merchant or an

affiliate’s use) must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from point(s) of receipt to

point(s) of delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Schedule 8

Non-Firm Point-To-Point Transmission

Service

The Transmission Customer shall

compensate the Transmission Provider

for Non-Firm Point-to-Point

Transmission Service pursuant to its

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

and made a part of the applicable

Service Agreement. The rates or rate

methodology used to calculate the

charges for service under this schedule

were promulgated and may be modified

pursuant to applicable Federal laws,

regulations, and policies.

The Transmission Provider may

modify the charges for Firm Point-toPoint Transmission Service upon

written notice to the Transmission

Customer. Any change to the charges to

the Transmission Customer for Firm

Point-to-Point Transmission Service

shall be as set forth in a subsequent rate

schedule promulgated pursuant to the

above procedures and attached to and

made part of the applicable Service

Agreement. The Transmission Provider

shall charge the Transmission Customer

in accordance with the rate then in

effect.

Discounts: Three principal

requirements apply to discounts for

transmission service as follows: (1) Any

offer of a discount made by the

Transmission Provider must be

announced to all Eligible Customers

solely by posting on the OASIS, (2) any

customer-initiated requests for

discounts (including requests for use by

one’s wholesale merchant or an

affiliate’s use) must occur solely by

posting on the OASIS, and (3) once a

discount is negotiated, details must be

immediately posted on the OASIS. For

any discount agreed upon for service on

a path, from point(s) of receipt to

point(s) of delivery, the Transmission

Provider must offer the same discounted

transmission service rate for the same

time period to all Eligible Customers on

all unconstrained transmission paths

that go to the same point(s) of delivery

on the Transmission System.

Attachment A

Form of Service Agreement for Firm PointTo-Point Transmission Service

Note: The form of the agreement for shortterm firm transmission service is Attachment

B, which is an enabling agreement for shortterm arrangements, both firm and non-firm.

Part A: Service Agreement for Long-Term,

Firm Point-To-Point Transmission Service

1 This Service Agreement (Agreement),

dated as of lllll, is entered into, by

and between Southwestern Power

Administration (Transmission Provider or

Southwestern), and lllll

(Transmission Customer).

1.1 The Transmission Provider may

revise rates for Firm Point-to-Point

Transmission Service provided under this

Service Agreement pursuant to applicable

Federal laws, regulations, and policies upon

written notice to the Transmission Customer.

1.2 The Transmission Provider may

change the General Provisions of this

Agreement (Part C) upon written notice to the

Transmission Customer.

1.3 The Transmission Provider may recall

all or part of the capacity reserved under this

Service Agreement, with no less than 36
510 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

months’ notice, if such capacity is required

to fulfill the Transmission Provider’s

obligations under Section 5 of the Flood

Control Act of 1944.

2 The Transmission Customer has been

determined by the Transmission Provider to

have a Completed Application for LongTerm, Firm Point-To-Point Transmission

Service under the Transmission Provider’s

Open Access Transmission Tariff (Tariff).

3 The Transmission Customer has

provided to the Transmission Provider a

processing fee in accordance with Section

17.3 of the Tariff.

4 The Tariff as presently constituted or as

it may be revised or superseded is

incorporated herein and made a part hereof.

5 Southwestern’s rate schedule

applicable to Firm Point-to-Point

Transmission Service (Rate Schedule) as

presently constituted or as it may be revised

or superseded is incorporated herein and

made a part hereof.

6 Service under this Agreement shall

commence on the latest of:

(1) lllll, (2) the date on which

construction of any Direct Assignment

Facilities and/or Network Upgrades are

completed, or (3) on the first day of the

month following execution by both Parties.

Service under this Agreement shall terminate

on lllll.

7 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 Agreement.

8 All schedules for service under this

Agreement which cross Control Area

boundaries between the Transmission

Provider and interconnected utilities shall

conform to the standards for scheduled

interchange of the North American Electric

Reliability Council and the applicable

regional reliability council.

9 The Transmission Provider is not

obligated under this Agreement to satisfy any

deficiencies that may occur for the

Transmission Customer as a result of

suspension or reduction of schedules by a

Third Party, nor is the Transmission Provider

obliged to notify any party if such schedules

are suspended or reduced due to the action

of a Third Party.

10 Any notice or request made to or by

either Party regarding this Agreement shall

be made to the representative of the other

Party as indicated below.

Transmission Provider: Administrator,

Southwestern Power Administration, One

West Third Street, Suite 1400, Tulsa, OK

74103.

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

IN WITNESS WHEREOF, the Parties have

caused this Agreement to be executed by

their respective authorized officials.

SOUTHWESTERN POWER

ADMINISTRATION

By: lllllllllllllllllll

ADMINISTRATOR

P.O. Box 1619

Tulsa, Oklahoma, 74101–1619

Date: llllllllllllllllll

Reviewed by Southwestern’s General

Counsel:

By: lllllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Part B: Specifications for Long-Term Firm

Point-To-Point Transmission Service

1 Term of Transaction: lllllllll

Start Date: lllllllllllllll

Termination Date: llllllllllll

2 Description of capacity to be transmitted

by Transmission Provider, including the

electric Control Area in which the

transaction originates.

lllllllllllllllllllll

3 Point(s) of Receipt: llllllllll

Delivering Party: lllll lllllll

4 Point(s) of Delivery: lllll llll

5 Receiving Party: lllll llllll

Maximum amount of capacity to be

transmitted (Reserved Capacity):

lllllllllllllllllllll

6 Designation of party(ies) subject to

reciprocal service obligation:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

7 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 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 and the Rate Schedule.

8.1 Transmission Charges are set forth in

the Rate Schedule.

8.2 Real Power Losses will be applied

and charged in accordance with the Rate

Schedule.

8.3 Ancillary Services Charges are set

forth in the Rate Schedule. The specific

Ancillary Services to be charged initially

under this Agreement are listed below.

Changes in Ancillary Services, if applicable,

are made in accordance with the Rate

Schedule.

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

8.4 System Impact and/or Facilities Study

Charge(s): (to be filled in if applicable)

lllllllllllllllllllll

lllllllllllllllllllll

8.5 Direct Assignment Facilities Charge:

(to be filled in if applicable)

lllllllllllllllllllll

8.5 Other Charges, including

transformation services and penalties, if

applicable, will be determined by the Rate

Schedule or set forth below:

Part C: General Provisions Applicable to

Transmission Service

1 Propriety of Rates. The Transmission

Provider shall bill the Transmission

Customer for the Transmission Customer’s

purchases of power, energy, and other

services in accordance with the Rate

Schedule, which is placed in effect pursuant

to statute.

1.1 The Transmission Customer hereby

agrees to promptly pay the Transmission

Provider under such Rate Schedule, whether

or not the Transmission Customer agrees

with the propriety or the levels of the rates

placed into effect pursuant to law, regulation,

or the order of an appropriate authority,

subject to the Transmission Customer’s rights

to terminate service.

1.2 In the event that the U.S. Congress

amends the manner in which the

Transmission Provider calculates or charges

for its products and services, the

Transmission Customer hereby agrees to

promptly pay in such an amended manner,

subject to the Transmission Customer’s right

to terminate.

2 Changes in Rates: The rates and/or

terms and conditions set forth in the Rate

Schedule may change upon confirmation

and/or approval by the appropriate authority

having responsibility to so confirm and/or

approve rate schedules, and, whether on an

interim basis or as finally confirmed and/or

approved, such rates may be increased,

decreased, modified, or superseded at any

time and from time to time.

2.1 If such rates are so increased,

decreased, modified, or superseded, the rates

and terms and conditions shall thereupon

become effective and applicable to the

Transmission Service furnished by the

Transmission Provider under this Agreement,

in accordance with and on the effective date

specified in the order of the appropriate

authority.

2.2 The Transmission Provider shall

promptly notify the Transmission Customer

in writing of the redetermination and/or

changes and modifications made in the theneffective Transmission Provider’s rate

schedules for Transmission Service.

2.3 If such notice advises that the rates to

be paid by the Transmission Customer for the

Transmission Service furnished by the

Transmission Provider under this Agreement

are greater than the then-effective rate for

such service, The Transmission Customer

may, by written notice to the Transmission

Provider at any time within 90 days

following the date of receipt of such notice

from the Transmission Provider, terminate

this Agreement in its entirety, such

termination to become effective as of the last

day of any month following no less than 6

months after the date of receipt by the

Transmission Provider of such notice of

termination from the Transmission Customer.

2.4 In the event that the Transmission

Customer elects to terminate this Agreement

pursuant to this Section 2, the Transmission
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 511

Customer shall pay for services under this

Agreement at the then-effective rates during

the interim between the date of such notice

and the effective termination date specified

in such notice.

3 Availability of Funds to the

Transmission Provider: This Agreement and

all rights and obligations hereunder, and the

expenditure of funds by the Transmission

Provider under its provisions, are expressly

conditioned and contingent upon the U.S.

Congress’s making available (through direct

appropriation, authorization of a revolving

fund, the authority to borrow funds, or

through such other means as it may provide)

the necessary funds to enable the

Transmission Provider to carry out the

provisions of this Agreement, and if such

funds are not available, this Agreement shall

terminate and have no further force or effect

as of the last day for which funds were

available, and the Transmission Customer

hereby releases the Transmission Provider

from any and all liability for failure to

perform and fulfill its obligations under this

Agreement for that reason.

3.1 No obligation contained herein for the

future payment of money by the

Transmission Provider, or liability on the

part of the Transmission Provider for breach

of any of the provisions contained herein,

shall be binding upon or enforceable against

the Transmission Provider unless and until

funds, as provided in this Section 3, are

available out of which such obligations or

liability can be legally paid.

3.2 Nothing in this Agreement may be

considered as implying that the U.S.

Congress will, at a later date, appropriate

funds sufficient to meet any deficiencies or

obligations incurred under this Agreement.

4 Covenant Against Contingent Fees: The

Transmission Customer warrants that no

person or selling agency has been employed

or retained to solicit or secure this Agreement

upon an agreement or understanding for a

commission, percentage, brokerage, or

contingent fee, except 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 this Agreement

without liability, or, at its discretion, to add

to the Agreement price or consideration the

full amount of such commission, percentage,

brokerage, or contingent fee.

5 Termination for Breach: If either Party

breaches a material provision of this

Agreement, the other Party, at its option, may

terminate this Agreement upon 30 days’ prior

written notice of its intention to do so, and

this Agreement ipso facto shall terminate at

the end of such 30-day period unless such

violation is corrected within that period.

Neither Party shall be considered to be in

default or breach with respect to any

obligation under this Agreement if prevented

from fulfilling such obligation by reason of

an Uncontrollable Force.

6 Convict Labor: In connection with the

performance of work under this Agreement,

the Transmission Customer agrees not to

employ any person under going sentence of

imprisonment except as provided by Pub. L.

89–176, September 10, 1965 (18 U.S.C. 4062

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

29, 1973.

7 Equal Employment Opportunity: During

the performance of this Agreement, the

Transmission Customer agrees to abide by

and to fulfill the nondiscrimination

requirements of the ‘‘equal opportunity

clause’’ contained in Section 202 of

Executive Order 11246 dated September 24,

1965 (30 FR 12319), any Executive Order

amending such order, and any other

Executive Order superseding such order.

8 Affirmative Action for Disabled

Veterans and Veterans of the Vietnam Era:

During the performance of this Agreement,

the Transmission Customer agrees to comply

with Section 402 of the Vietnam Era Veterans

Readjustment Assistance Act of 1974, Pub. L.

93–508 as it amends Pub. L. 92–540, to take

affirmative action to employ and advance in

employment qualified disabled veterans and

veterans of the Vietnam era, and to fulfill the

requirements of the ‘‘affirmative action

clause,’’ 38 USCA Sections 2011 and 2012

(1979); 41 CFR 60–250 et seq.

9 Affirmative Action for Handicapped

Workers: During the performance of this

Agreement, the Transmission Customer

agrees to comply with Section 503 of the

Rehabilitation Act of 1973, Pub. L. 93–516,

to take affirmative action to employ and

advance in employment qualified

handicapped individuals, and to otherwise

fulfill the requirements of the ‘‘affirmative

action clause,’’ 29 USCA Section 793 (1979);

41 CFR 60–741 et seq.

10 Contract Work Hours and Safety

Standards: This Agreement, to the extent that

it is of a character specified in Section 103

of the Contract Work Hours and Safety

Standards Act, 40 U.S.C. 327–333 (1986), is

subject to the provisions of the said Act and

to regulations promulgated by the Secretary

of Labor pursuant to the said Act.

The following provisions are applicable

only to Transmission Customers which

receive service through facilities which are

(1) jointly used by the Transmission Provider

and the Transmission Customer, (2) where

the Transmission Customer would have

occasion to enter the facilities of the

Transmission Provider, (3) where the

Transmission Customer owns facilities

installed on the property of the Transmission

Provider, and/or (4) when the Transmission

Customer takes service directly from facilities

owned and maintained by the Transmission

Provider.

11 Meter Tests and Adjustments: Any

metering equipment which may be used in

power accounting for Transmission Service

under this Agreement shall be inspected and

tested at least once each year by the Party

responsible, and at any reasonable time upon

request by either Party. Metering equipment

found to be defective or inaccurate shall be

repaired and readjusted or replaced by the

owner.

11.1 A meter shall be considered

inaccurate if it is found to deviate from an

accurate standard meter in excess of 0.5

percent when tested at 100 percent of load

or 1.0 percent when tested at 10 percent of

load.

11.2 If any meter inspection or test

discloses an error exceeding 2 percent, a

correction based upon the inaccuracy found

shall be made on the records of electric

service furnished since the beginning of the

monthly billing period immediately

preceding the billing period during which

the test was made, and such correction, when

made, shall constitute full adjustment of any

claim between the parties hereto arising out

of such inaccuracy of metering equipment.

12 Reliability, Safety, Health, and

Environmental Requirements in Regard to

Construction, Operation, and Maintenance

on U.S. Government Property: The provisions

of this Section 12 shall apply only if the

Transmission Customer, its agents or

contractors, or its member entities perform

maintenance, operations, or construction on

the property of the U.S. Government

(Government), or on easements shared by the

Government and the Transmission Customer.

12.1 Such construction, maintenance,

and operation shall be performed in

accordance with standards at least equal to

those provided by the National Electrical

Safety Code and shall conform to safety,

environmental, and security procedures

identified by Transmission Provider as

appropriate to each facility in which such

work is performed. The Transmission

Provider provides such written procedures in

each of the facilities it maintains and to

affected Transmission Customers.

12.2 The Transmission Customer and/or

its member entities shall take all reasonable

precautions in the performance of such work

to protect the public and the environment.

The Transmission Customer and/or its

member entities shall comply with all

applicable local, state, and Federal

regulations and requirements in the

performance of such work, including, but not

limited to, the National Environmental Policy

Act, the Clean Air Act; the Clean Water Act;

the Comprehensive Environmental

Responsibility, Compensation, and Liability

Act; the Toxic Substances Control Act; the

Resource Conservation and Recovery Act; the

Superfund Amendments and Reauthorization

Act (SARA); SARA Title III (Emergency

Planning and Community Right-to-Know Act

of 1986); and the Occupational Safety and

Health Act.

12.3 In the event that the Transmission

Provider, at its sole option and in its sole

judgment, determines that construction,

maintenance, or operation of facilities which

are performed under this Agreement by the

Transmission Customer, and/or one of its

member entities, do not meet the standards

and/or regulations and requirements

specified in this Section 12, or if the

Transmission Provider determines, in its sole

judgment, that a condition exists which

provides a potentially adverse impact (1) on

the reliability of services provided by

Transmission Provider to its customers, (2)

on the safety and/or health of the public or

employees and agents of the parties hereto,

and/or (3) on the environment, then

Transmission Provider may provide written

notice to the Transmission Customer and/or

its member entity of the deficient condition;

Provided, That, if such condition, in

Transmission Provider’s sole judgment and at

Transmission Provider’s sole option, requires

immediate attention and does not allow time
512 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

for such notice, Transmission Provider will

remedy the condition and, where

appropriate, bill the Transmission Customer.

12.4 Where, in the Transmission

Provider’s sole judgment, remedy of the said

deficient condition is not time critical, the

Transmission Customer and/or its member

entity shall provide a written plan and

schedule to Transmission Provider within 30

days of receipt of the said written notice.

Such plan and schedule shall provide for

correction of the said deficiency at the

earliest possible time available to the

Transmission Customer and/or its member

entity; Provided, That, the maximum time

allowed for the Transmission Customer and/

or its member entity to correct any such

deficiency shall not exceed 18 months from

receipt of the said written notice. The

Transmission Customer shall coordinate or, if

applicable, cause its member entity to

coordinate, any work and outages which may

involve Transmission Provider’s facilities

with Transmission Provider’s Dispatch

Center (Dispatch Center) in Springfield,

Missouri.

12.5 Unless otherwise agreed in writing,

correction of deficiencies pursuant to this

Section 12 shall be at the expense of the

Transmission Customer.

12.6 If the Transmission Customer and/or

its member entity fails to correct the

deficiency within the time provided pursuant

to this Section 12, the Transmission Provider

shall have the right, at its sole option and in

its sole discretion, to terminate service

through the affected facilities until such

deficiencies are corrected to the satisfaction

of Transmission Provider.

12.7 If, within the time period provided

pursuant to this Section 12, an emergency

condition occurs which, in the sole judgment

of Transmission Provider, may cause an

adverse impact on the reliability of the

Transmission System of Transmission

Provider and/or on the environment, or

which poses a hazard to the safety and/or

health of the public or employees and agents

of the parties hereto, then Transmission

Provider may, at its sole option, remedy or

repair such condition or equipment and bill

the Transmission Customer, and the

Transmission Customer agrees to render the

Transmission Provider reimbursement.

13 Right of Installation and Access

Each Party grants to the other permission,

or will obtain such permission for the other

Party, to install, maintain, and operate, or

cause to be installed, maintained, and

operated, on the System of Transmission

Provider and on the System of the

Transmission Customer, at the Point(s) of

Delivery between the System of Transmission

Provider and the System of the Transmission

Customer utilized under this Agreement, any

and all terminal equipment and associated

electrical apparatus and devices necessary in

the performance of this Agreement.

13.1 Each party shall permit, or shall

obtain permission for, duly authorized

representatives and employees of the other

Party to enter upon the System of the

Transmission Provider and the System of the

Transmission Customer at the said Point(s) of

Delivery for the purpose of reading or

checking meters; for inspecting, testing,

repairing, renewing, or exchanging any or all

of the equipment owned by the other party

located on such premises; or for the purpose

of performing any other work necessary in

the performance of this Agreement.

13.2 Access for any work performed by

one party under this Section 13 which may

affect the other Party’s equipment shall

normally be preceded by at least one day’s

notice to the affected Party, except in the

event of an emergency, in which case such

notice shall be made as soon as possible after

such emergency occurrence. Notice to

Transmission Provider pursuant to this

Section 13 shall be made to the Dispatch

Center.

13.3 Any access to property controlled by

the Transmission Provider shall include

notification to Transmission Provider at the

time of entry. Any employee or agent of the

Transmission Customer, or of its member

entities, who enters a Transmission Provider

facility is expected to call the Dispatch

Center from a telephone located in the

control building in that facility and to

identify himself or herself. Security devices

located in the control buildings at

Transmission Provider facilities sound an

alarm in the Dispatch Center when the

building is entered. Local law enforcement

officers may be asked to investigate any

unidentified entry.

13.4 Any equipment, apparatus, or

devices installed on the System of the

Transmission Provider by the Transmission

Customer, as provided under this Section 13,

shall be clearly and permanently marked to

indicate ownership, and, in addition, a

detailed description of each item so installed

(including, if applicable, manufacturer’s

name, serial number, model number, etc.)

shall be communicated to Transmission

Provider to aid in maintenance of plant

accounts.

13.5 In the event the equipment,

apparatus, or devices are not marked in

accordance with Section 13.4, ownership of

said equipment, apparatus, or devices shall

be presumed to be vested in Transmission

Provider.

13.6 The Transmission Customer agrees

that, if requested by Transmission Provider,

the description required under Section 13.4

shall include a detailed analysis of all

dielectrical oil, including, but not limited to,

tests for polychlorinated biphenyls (PCBs). If

such analysis indicates the presence of a

known hazardous substance, which, in the

Transmission Provider’s sole judgment,

presents a significant hazard to the

environment or to the health and safety of

employees of the parties hereto, the

Transmission Provider may require, at its

sole option, by written request, removal of

any equipment containing such substance,

and the Transmission Customer agrees to

comply with such request for removal at no

cost to Transmission Provider.

14 Right of Removal

Any and all equipment, apparatus, or

devices placed or installed or caused to be

placed or installed by the Parties on or in the

System of the Transmission Provider or the

System of the Transmission Customer shall

be and shall remain the property of the Party

owning and installing such equipment,

apparatus, devices, or facilities, regardless of

the mode or manner of annexation or

attachment to real property, and, upon the

termination of this Agreement, the owner

thereof shall have the right to enter upon the

premises or system of the other and shall,

within a reasonable time, remove such

equipment, apparatus, devices, or facilities,

subject to the provisions of Section 13.5.

15 Right to Upgrade Facilities

The Transmission Provider reserves the

right to modify or upgrade its Transmission

System and any of the elements which

support such Transmission System,

including, but not limited to, changes in: (1)

The Transmission Provider’s transmission

voltages, (2) The Transmission Provider’s

transmission system components, (3) The

Transmission Provider’s communications

system, (4) The Transmission Provider’s

Supervisory Control and Data Acquisition

(SCADA) System, and (5) other modifications

necessary to comply with the standards and/

or regulations and requirements mentioned

in Section 16.

15.1 If, during the term of this

Agreement, the Transmission Provider

determines, in its sole judgment and at its

sole option, that modifications or upgrades to

its Transmission System and associated

facilities are required, then, in that event, the

Transmission Customer shall be responsible

for any and all costs and expenses incurred

by the Transmission Customer in order to

continue to receive services provided under

this Agreement.

15.2 If the Transmission Customer elects

not to make changes in its facilities which,

in The Transmission Provider’s judgment, are

required for the Transmission Customer to

continue to receive reliable service from the

Transmission Provider’s modified or

upgraded facilities, then the Transmission

Customer will discontinue receipt of the

services provided under this Agreement

which are dependent on such modified or

upgraded facilities, and the provisions of this

Agreement which describe such services

shall be terminated or, at the Transmission

Provider’s sole option, suspended, until the

Transmission Customer completes the

changes in its facilities which the

Transmission Provider, in its sole judgment,

deems necessary for safe and reliable service

to the Transmission Customer.

15.3 The Transmission Provider shall

notify the Transmission Customer of the

specific sections or articles of the Agreement

which are to be terminated or suspended

pursuant to this Section 15.

15.4 Any provisions of this Agreement

which are not specifically terminated or

suspended pursuant to Section 15.3 shall not

in any way be affected and shall remain in

full force and effect except insofar as the

services provided pursuant to the terminated

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
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 513

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 B

Form of Service Agreement for Firm and

Non-Firm Point-To-Point Transmission

Service

Note: The form of this agreement

incorporates short-term firm transmission

service with non-firm transmission service,

and is an enabling agreement for all

Southwestern short-term transmission

arrangements, both firm and non-firm.

Part A: Service Agreement for Enabling

Short-Term Point-To-Point Transmission

Service

1 This Service Agreement (Agreement),

dated as of lllll, is entered into, by,

and between the Southwestern Power

Administration (Transmission Provider or

Southwestern), and lllll

(Transmission Customer).

1.1 The Transmission Provider may

revise rates for Firm Point-to-Point

Transmission Service provided under this

Service Agreement pursuant to applicable

Federal laws, regulations, and policies upon

written notice to the Transmission Customer.

1.2 The Transmission Provider may

change the General Provisions of this

Agreement (Part C) upon written notice to the

Transmission Customer.

2 The Transmission Customer has been

determined by the Transmission Provider to

have a Completed Application for receiving

Short-Term Point-To-Point Transmission

Service under the Transmission Provider’s

Open Access Transmission Tariff (Tariff).

3 The Tariff as presently constituted or as

it may be revised or superseded is

incorporated herein and made a part hereof.

4 Southwestern’s rate schedule

applicable to Point-to-Point Transmission

Service (Rate Schedule) as presently

constituted or as it may be revised or

superseded is incorporated herein and made

a part hereof.

5 Service under this agreement shall

commence on the latest of: (1) lllll, (2)

the date on which construction of any Direct

Assignment Facilities and/or Network

Upgrades are completed, or (3) on the first

day of the month following execution by both

parties. Service under this Agreement shall

terminate on lllll.

6 The Transmission Provider agrees to

provide, and the Transmission Customer

agrees to take and pay for, Short-Term PointTo-Point Transmission Service in accordance

with the provisions of Part II of the Tariff and

this Agreement.

7 All schedules for service under this

Agreement which cross Control Area

boundaries between the Transmission

Provider and interconnected utilities shall

conform to the standards for scheduled

interchange of the North American Electric

Reliability Council and the applicable

regional reliability council.

8 The Transmission Provider is not

obligated under this Agreement to satisfy any

deficiencies that may occur for the

Transmission Customer as a result of

suspension or reduction of schedules by a

Third Party, nor is the Transmission Provider

obliged to notify any party if such schedules

are suspended or reduced due to the action

of a Third Party.

9 Any notice or request made to or by

either Party regarding this Agreement shall

be made to the representative of the other

Party as indicated below.

Transmission Provider: Administrator,

Southwestern Power Administration, One

West Third Street, Suite 1400, Tulsa, OK

74103.

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

IN WITNESS WHEREOF, the Parties have

caused this Agreement to be executed by

their respective authorized officials.

SOUTHWESTERN POWER

ADMINISTRATION

By: lllllllllllllllllll

ADMINISTRATOR

P.O. Box 1619

Tulsa, Oklahoma, 74101–1619

Date: llllllllllllllllll

Reviewed by Southwestern’s General

Counsel:

By: lllllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Part B: General Terms and Conditions for

Short-Term Firm and Non-Firm Point-ToPoint Transmission Service

1 This Agreement is intended to enable a

variety of individual Short-Term Firm and

Non-Firm Transmission Service Transactions

(Transactions). For the purposes of this

Agreement, the Transmission Customer has

designated the following information in its

Completed Application as ‘‘various:’’

(I) Points of Receipt and Delivery,

including supply and delivery characteristics

and voltages;

(ii) the Reserved Transmission Capacity

desired;

(iii) the type of service (firm or non-firm,

hourly, daily, weekly, monthly) desired;

(iv) the date(s) and, if applicable, hour(s)

for the service which is desired,

(v) the identities of the Delivering and

Receiving Parties; and

(vi) the location(s) of the resource from

which power and energy are to be supplied

and the location of the load or Control

Area(s) to which it is to be transmitted.

2 Individual Transactions for Short-Term,

Firm or Non-Firm, Transmission Service

under this Agreement may be requested by

the Transmission Customer in increments of

a day, a week, or a month for Firm

Transmission Service, or in increments of an

hour, a day, a week, or a month for Non-Firm

Transmission Service, and the Transmission

Provider will grant such requests on an

as-available basis.

2.1 For each specific Transaction

requested, the Transmission Customer shall

supply to the Transmission Provider the

specific information listed in Section 1

pertinent to such Transaction, via

Southwestern’s OASIS and/or by telephone

or facsimile, in accordance with the Tariff

and with specific procedures which are

mutually agreeable to the Parties.

2.2 The Transmission Customer shall

request a separate Transaction for each type

of service (firm or non-firm, and by rate types

related to increments of hourly, daily,

weekly, or monthly reservations).

2.3 The Transmission Provider shall

review each Transaction request and

determine whether a reservation for such

Transaction is available. The Transmission

Provider shall communicate, also via OASIS

and/or other means as agreed, the results of

such determination.

2.4 In the event that a capacity

reservation is recorded for such Transaction,

the Transmission Customer will submit

actual schedules under such reservation in

accordance with established procedures,

subject to the priority provisions of the Tariff

and of Section 7 of Part A of this Agreement.
514 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

3 Capacity reservations for any particular

Transaction for Short-Term Firm

Transmission Service will conform to the

following minimum and maximum periods

for making such reservation prior to actual

service under such Transaction:

(a) For reservations in increments of one

day (daily): No later than 2 days, no earlier

than 60 days prior to service

(b) For reservations in increments of one

week (weekly): No later than 2 days, no

earlier than 60 days prior to service

(c) For reservations in increments of one

month: No later than 14 days, no earlier than

120 days prior to service

4 Capacity reservations for any particular

Transaction for Non-Firm Transmission

Service will conform to the following

minimum and maximum periods for making

such reservation prior to actual service under

such Transaction:

(a) For reservations in increments of one

hour (hourly): No later than 20 minutes prior

to the first hour requested, no earlier than

2:00 p.m. the day before

(b) For reservations in increments of one

day (daily): No later than 10:00 a.m. the day

before, no earlier than 30 days prior to

service

(c) For reservations of one week to one

month (weekly): No later than 2:00 p.m. the

day before, no earlier than 60 days prior to

service

(d) For reservations of one month: No later

than 2:00 p.m. the day before, no earlier than

120 days prior to service

5 Reservations for any given one-week

increment shall not cross the end of a

calendar month, and reservations for any

month shall be requested from the first day

to the last day of a particular calendar month.

6 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 and the Rate Schedule.

6.1 Transmission Charges are set forth in

the Rate Schedule.

6.2 Real Power Losses will be applied

and charged in accordance with the Rate

Schedule.

6.3 Ancillary Services Charges are set

forth in the Rate Schedule. The specific

Ancillary Services to be charged for any

particular Transaction will be determined in

accordance with the Rate Schedule.

6.4 Other Charges, including

transformation services and penalties, if

applicable, will be determined by the Rate

Schedule or set forth below:

Part C: General Provisions Applicable to

Transmission Service

1 Propriety of Rates: The Transmission

Provider shall bill the Transmission

Customer for the Transmission Customer’s

purchases of power, energy, and other

services in accordance with the Rate

Schedule, which is placed in effect pursuant

to statute.

1.1 The Transmission Customer hereby

agrees to promptly pay the Transmission

Provider under such Rate Schedule, whether

or not the Transmission Customer agrees

with the propriety or the levels of the rates

placed into effect pursuant to law, regulation,

or the order of an appropriate authority,

subject to the Transmission Customer’s rights

to terminate service.

1.2 In the event that the U.S. Congress

amends the manner in which the

Transmission Provider calculates or charges

for its products and services, the

Transmission Customer hereby agrees to

promptly pay in such an amended manner,

subject to the Transmission Customer’s right

to terminate.

2 Changes in Rates: The rates and/or

terms and conditions set forth in the Rate

Schedule may change upon confirmation

and/or approval by the appropriate authority

having responsibility to so confirm and/or

approve rate schedules, and, whether on an

interim basis or as finally confirmed and/or

approved, such rates may be increased,

decreased, modified, or superseded at any

time and from time to time.

2.1 If such rates are so increased,

decreased, modified, or superseded, the rates

and terms and conditions shall thereupon

become effective and applicable to the

Transmission Service furnished by the

Transmission Provider under this Agreement,

in accordance with and on the effective date

specified in the order of the appropriate

authority.

2.2 The Transmission Provider shall

promptly notify the Transmission Customer

in writing of the redetermination and/or

changes and modifications made in the theneffective Transmission Provider’s rate

schedules for Transmission Service.

2.3 If such notice advises that the rates to

be paid by the Transmission Customer for the

Transmission Service furnished by the

Transmission Provider under this Agreement

are greater than the then-effective rate for

such service, The Transmission Customer

may, by written notice to the Transmission

Provider at any time within 90 days

following the date of receipt of such notice

from the Transmission Provider, terminate

this Agreement in its entirety, such

termination to become effective as of the last

day of any month following no less than 6

months after the date of receipt by the

Transmission Provider of such notice of

termination from the Transmission Customer.

2.4 In the event that the Transmission

Customer elects to terminate this Agreement

pursuant to this Section 2, the Transmission

Customer shall pay for services under this

Agreement at the then-effective rates during

the interim between the date of such notice

and the effective termination date specified

in such notice.

3 Availability of Funds to the Transmission

Provider: This Agreement and all rights and

obligations hereunder, and the expenditure

of funds by the Transmission Provider under

its provisions, are expressly conditioned and

contingent upon the U.S. Congress’s making

available (through direct appropriation,

authorization of a revolving fund, the

authority to borrow funds, or through such

other means as it may provide) the necessary

funds to enable the Transmission Provider to

carry out the provisions of this Agreement,

and if such funds are not available, this

Agreement shall terminate and have no

further force or effect as of the last day for

which funds were available, and the

Transmission Customer hereby releases the

Transmission Provider from any and all

liability for failure to perform and fulfill its

obligations under this Agreement for that

reason.

3.1 No obligation contained herein for the

future payment of money by the

Transmission Provider, or liability on the

part of the Transmission Provider for breach

of any of the provisions contained herein,

shall be binding upon or enforceable against

the Transmission Provider unless and until

funds, as provided in this Section 3, are

available out of which such obligations or

liability can be legally paid.

3.2 Nothing in this Agreement may be

considered as implying that the U.S.

Congress will, at a later date, appropriate

funds sufficient to meet any deficiencies or

obligations incurred under this Agreement.

4 Covenant Against Contingent Fees: The

Transmission Customer warrants that no

person or selling agency has been employed

or retained to solicit or secure this Agreement

upon an agreement or understanding for a

commission, percentage, brokerage, or

contingent fee, except 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 this Agreement

without liability, or, at its discretion, to add

to the Agreement price or consideration the

full amount of such commission, percentage,

brokerage, or contingent fee.

5 Termination for Breach: If either Party

breaches a material provision of this

Agreement, the other Party, at its option, may

terminate this Agreement upon 30 days’ prior

written notice of its intention to do so, and

this Agreement ipso facto shall terminate at

the end of such 30-day period unless such

violation is corrected within that period.

Neither Party shall be considered to be in

default or breach with respect to any

obligation under this Agreement if prevented

from fulfilling such obligation by reason of

an Uncontrollable Force.

6 Convict Labor: In connection with the

performance of work under this Agreement,

the Transmission Customer agrees not to

employ any person undergoing sentence of

imprisonment except as provided by Public

Law 89–176, September 10, 1965 (18 U.S.C.

4062(c)(2)), and Executive Order 11755,

December 29, 1973.

7 Equal Employment Opportunity: During

the performance of this Agreement, the
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 515

Transmission Customer agrees to abide by

and to fulfill the nondiscrimination

requirements of the ‘‘equal opportunity

clause’’ contained in Section 202 of

Executive Order 11246 dated September 24,

1965 (30 FR 12319), any Executive Order

amending such order, and any other

Executive Order superseding such order.

8 Affirmative Action for Disabled

Veterans and Veterans of the Vietnam Era:

During the performance of this Agreement,

the Transmission Customer agrees to comply

with Section 402 of the Vietnam Era Veterans

Readjustment Assistance Act of 1974, Public

Law 93–508 as it amends Public Law 92–540,

to take affirmative action to employ and

advance in employment qualified disabled

veterans and veterans of the Vietnam era, and

to fulfill the requirements of the ‘‘affirmative

action clause,’’ 38 USCA Sections 2011 and

2012 (1979); 41 CFR 60–250 et seq.

9 Affirmative Action for Handicapped

Workers: During the performance of this

Agreement, the Transmission Customer

agrees to comply with Section 503 of the

Rehabilitation Act of 1973, Public Law 93–

516, to take affirmative action to employ and

advance in employment qualified

handicapped individuals, and to otherwise

fulfill the requirements of the ‘‘affirmative

action clause,’’ 29 USCA Section 793 (1979);

41 CFR 60–741 et seq.

10 Contract Work Hours and Safety

Standards: This Agreement, to the extent that

it is of a character specified in Section 103

of the Contract Work Hours and Safety

Standards Act, 40 U.S.C. 327–333 (1986), is

subject to the provisions of the said Act and

to regulations promulgated by the Secretary

of Labor pursuant to the said Act.

The following provisions are applicable

only to Transmission Customers which

receive service through facilities which are

(1) jointly used by the Transmission Provider

and the Transmission Customer, (2) where

the Transmission Customer would have

occasion to enter the facilities of the

Transmission Provider, (3) where the

Transmission Customer owns facilities

installed on the property of the Transmission

Provider, and/or (4) when the Transmission

Customer takes service directly from facilities

owned and maintained by the Transmission

Provider.

11 Meter Tests and Adjustments: Any

metering equipment which may be used in

power accounting for Transmission Service

under this Agreement shall be inspected and

tested at least once each year by the Party

responsible, and at any reasonable time upon

request by either Party. Metering equipment

found to be defective or inaccurate shall be

repaired and readjusted or replaced by the

owner.

11.1 A meter shall be considered

inaccurate if it is found to deviate from an

accurate standard meter in excess of 0.5

percent when tested at 100 percent of load

or 1.0 percent when tested at 10 percent of

load.

11.2 If any meter inspection or test

discloses an error exceeding 2 percent, a

correction based upon the inaccuracy found

shall be made on the records of electric

service furnished since the beginning of the

monthly billing period immediately

preceding the billing period during which

the test was made, and such correction, when

made, shall constitute full adjustment of any

claim between the parties hereto arising out

of such inaccuracy of metering equipment.

12 Reliability, Safety, Health, and

Environmental Requirements in Regard to

Construction, Operation, and Maintenance

on U.S. Government Property: The provisions

of this Section 12 shall apply only if the

Transmission Customer, its agents or

contractors, or its member entities perform

maintenance, operations, or construction on

the property of the U.S. Government

(Government), or on easements shared by the

Government and the Transmission Customer.

12.1 Such construction, maintenance,

and operation shall be performed in

accordance with standards at least equal to

those provided by the National Electrical

Safety Code and shall conform to safety,

environmental, and security procedures

identified by Transmission Provider as

appropriate to each facility in which such

work is performed. The Transmission

Provider provides such written procedures in

each of the facilities it maintains and to

affected Transmission Customers.

12.2 The Transmission Customer and/or

its member entities shall take all reasonable

precautions in the performance of such work

to protect the public and the environment.

The Transmission Customer and/or its

member entities shall comply with all

applicable local, state, and Federal

regulations and requirements in the

performance of such work, including, but not

limited to, the National Environmental Policy

Act, the Clean Air Act; the Clean Water Act;

the Comprehensive Environmental

Responsibility, Compensation, and Liability

Act; the Toxic Substances Control Act; the

Resource Conservation and Recovery Act; the

Superfund Amendments and Reauthorization

Act (SARA); SARA Title III (Emergency

Planning and Community Right-to-Know Act

of 1986); and the Occupational Safety and

Health Act.

12.3 In the event that the Transmission

Provider, at its sole option and in its sole

judgment, determines that construction,

maintenance, or operation of facilities which

are performed under this Agreement by the

Transmission Customer, and/or one of its

member entities, do not meet the standards

and/or regulations and requirements

specified in this Section 12, or if the

Transmission Provider determines, in its sole

judgment, that a condition exists which

provides a potentially adverse impact (1) on

the reliability of services provided by

Transmission Provider to its customers, (2)

on the safety and/or health of the public or

employees and agents of the parties hereto,

and/or (3) on the environment, then

Transmission Provider may provide written

notice to the Transmission Customer and/or

its member entity of the deficient condition;

Provided, That, if such condition, in

Transmission Provider’s sole judgment and at

Transmission Provider’s sole option, requires

immediate attention and does not allow time

for such notice, Transmission Provider will

remedy the condition and, where

appropriate, bill the Transmission Customer.

12.4 Where, in the Transmission

Provider’s sole judgment, remedy of the said

deficient condition is not time critical, the

Transmission Customer and/or its member

entity shall provide a written plan and

schedule to Transmission Provider within 30

days of receipt of the said written notice.

Such plan and schedule shall provide for

correction of the said deficiency at the

earliest possible time available to the

Transmission Customer and/or its member

entity; Provided, That, the maximum time

allowed for the Transmission Customer and/

or its member entity to correct any such

deficiency shall not exceed 18 months from

receipt of the said written notice. The

Transmission Customer shall coordinate or, if

applicable, cause its member entity to

coordinate, any work and outages which may

involve Transmission Provider’s facilities

with Transmission Provider’s Dispatch

Center (Dispatch Center) in Springfield,

Missouri.

12.5 Unless otherwise agreed in writing,

correction of deficiencies pursuant to this

Section 12 shall be at the expense of the

Transmission Customer.

12.6 If the Transmission Customer and/or

its member entity fails to correct the

deficiency within the time provided pursuant

to this Section 12, the Transmission Provider

shall have the right, at its sole option and in

its sole discretion, to terminate service

through the affected facilities until such

deficiencies are corrected to the satisfaction

of Transmission Provider.

12.7 If, within the time period provided

pursuant to this Section 12, an emergency

condition occurs which, in the sole judgment

of Transmission Provider, may cause an

adverse impact on the reliability of the

Transmission System of Transmission

Provider and/or on the environment, or

which poses a hazard to the safety and/or

health of the public or employees and agents

of the parties hereto, then Transmission

Provider may, at its sole option, remedy or

repair such condition or equipment and bill

the Transmission Customer, and the

Transmission Customer agrees to render the

Transmission Provider reimbursement.

13 Right of Installation and Access: Each

Party grants to the other permission, or will

obtain such permission for the other Party, to

install, maintain, and operate, or cause to be

installed, maintained, and operated, on the

System of Transmission Provider and on the

System of the Transmission Customer, at the

Point(s) of Delivery between the System of

Transmission Provider and the System of the

Transmission Customer utilized under this

Agreement, any and all terminal equipment

and associated electrical apparatus and

devices necessary in the performance of this

Agreement.

13.1 Each party shall permit, or shall

obtain permission for, duly authorized

representatives and employees of the other

Party to enter upon the System of the

Transmission Provider and the System of the

Transmission Customer at the said Point(s) of

Delivery for the purpose of reading or

checking meters; for inspecting, testing,

repairing, renewing, or exchanging any or all

of the equipment owned by the other party

located on such premises; or for the purpose

of performing any other work necessary in

the performance of this Agreement.
516 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

13.2 Access for any work performed by

one party under this Section 13 which may

affect the other Party’s equipment shall

normally be preceded by at least one day’s

notice to the affected Party, except in the

event of an emergency, in which case such

notice shall be made as soon as possible after

such emergency occurrence. Notice to

Transmission Provider pursuant to this

Section 13 shall be made to the Dispatch

Center.

13.3 Any access to property controlled by

the Transmission Provider shall include

notification to Transmission Provider at the

time of entry. Any employee or agent of the

Transmission Customer, or of its member

entities, who enters a Transmission Provider

facility is expected to call the Dispatch

Center from a telephone located in the

control building in that facility and to

identify himself or herself. Security devices

located in the control buildings at

Transmission Provider facilities sound an

alarm in the Dispatch Center when the

building is entered. Local law enforcement

officers may be asked to investigate any

unidentified entry.

13.4 Any equipment, apparatus, or

devices installed on the System of the

Transmission Provider by the Transmission

Customer, as provided under this Section 13,

shall be clearly and permanently marked to

indicate ownership, and, in addition, a

detailed description of each item so installed

(including, if applicable, manufacturer’s

name, serial number, model number, etc.)

shall be communicated to Transmission

Provider to aid in maintenance of plant

accounts.

13.5 In the event the equipment,

apparatus, or devices are not marked in

accordance with Section 13.4, ownership of

said equipment, apparatus, or devices shall

be presumed to be vested in Transmission

Provider.

13.6 The Transmission Customer agrees

that, if requested by Transmission Provider,

the description required under Section 13.4

shall include a detailed analysis of all

dielectrical oil, including, but not limited to,

tests for polychlorinated biphenyls (PCBs). If

such analysis indicates the presence of a

known hazardous substance, which, in the

Transmission Provider’s sole judgment,

presents a significant hazard to the

environment or to the health and safety of

employees of the parties hereto, the

Transmission Provider may require, at its

sole option, by written request, removal of

any equipment containing such substance,

and the Transmission Customer agrees to

comply with such request for removal at no

cost to Transmission Provider.

14 Right of Removal: Any and all

equipment, apparatus, or devices placed or

installed or caused to be placed or installed

by the Parties on or in the System of the

Transmission Provider or the System of the

Transmission Customer shall be and shall

remain the property of the Party owning and

installing such equipment, apparatus,

devices, or facilities, regardless of the mode

or manner of annexation or attachment to

real property, and, upon the termination of

this Agreement, the owner thereof shall have

the right to enter upon the premises or

system of the other and shall, within a

reasonable time, remove such equipment,

apparatus, devices, or facilities, subject to the

provisions of Section 13.5.

15 Right to Upgrade Facilities: The

Transmission Provider reserves the right to

modify or upgrade its Transmission System

and any of the elements which support such

Transmission System, including, but not

limited to, changes in: (1) The Transmission

Provider’s transmission voltages, (2) The

Transmission Provider’s transmission system

components, (3) The Transmission Provider’s

communications system, (4) The

Transmission Provider’s Supervisory Control

and Data Acquisition (SCADA) System, and

(5) other modifications necessary to comply

with the standards and/or regulations and

requirements mentioned in Section 16.

15.1 If, during the term of this

Agreement, the Transmission Provider

determines, in its sole judgment and at its

sole option, that modifications or upgrades to

its Transmission System and associated

facilities are required, then, in that event, the

Transmission Customer shall be responsible

for any and all costs and expenses incurred

by the Transmission Customer in order to

continue to receive services provided under

this Agreement.

15.2 If the Transmission Customer elects

not to make changes in its facilities which,

in The Transmission Provider’s judgment, are

required for the Transmission Customer to

continue to receive reliable service from the

Transmission Provider’s modified or

upgraded facilities, then the Transmission

Customer will discontinue receipt of the

services provided under this Agreement

which are dependent on such modified or

upgraded facilities, and the provisions of this

Agreement which describe such services

shall be terminated or, at the Transmission

Provider’s sole option, suspended, until the

Transmission Customer completes the

changes in its facilities which the

Transmission Provider, in its sole judgment,

deems necessary for safe and reliable service

to the Transmission Customer.

15.3 The Transmission Provider shall

notify the Transmission Customer of the

specific sections or articles of the Agreement

which are to be terminated or suspended

pursuant to this Section 15.

15.4 Any provisions of this Agreement

which are not specifically terminated or

suspended pursuant to Section 15.3 shall not

in any way be affected and shall remain in

full force and effect except insofar as the

services provided pursuant to the terminated

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 C

Methodology To Assess Available

Transmission Capability

The Transmission Provider is a member of

the Southwest Power Pool (SPP), and

participates in the SPP’s process for the

determination of Available Transfer

Capability (ATC) and Total Transfer

Capability. The SPP does seasonal transfer

studies to determine the inter-area transfer

capabilities. The methodology uses standard

incremental transfer capability techniques

that recognize thermal, voltage, and stability

limitations as well as contractual limitations.

This methodology is based on NERC Criteria,

Operating Policies, and Reference Documents

related to interchange and transfer capability

estimates. The specifics for this methodology

are available in Section 4 of SPP’s

publication titled ‘‘Criteria.’’

The Transmission Provider will post on the

OASIS the values calculated by the SPP.

When ATC approaches zero for any interface,

the Transmission Provider may do dedicated,

off-line studies in accordance with SPP

methodology to update the seasonal values of

ATC calculated by the SPP.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 517

Attachment D

Methodology for Completing a System Impact

Study

The Transmission Provider may require

System Impact Studies to determine the

feasibility of providing Transmission Service

under this Tariff. The System Impact Studies

will follow the general criteria and

procedures as described below. In addition,

the Transmission Provider is in the process

of developing a written guideline for

facilities evaluations, and such standards,

when they are complete, will be available to

an interested party. In determining the level

of capacity available for new Transmission

Service requests, the Transmission Provider

may exclude the capacity needed to meet

current and reasonably forecasted load of

Native Load Customers and Network

Customers, existing Firm Point-to-Point

Transmission Service customers, previously

pending applications for Firm Point-to-Point

Transmission Service, and the capacity

needed to meet existing contractual

obligations.

Point-to-Point Service

The Transmission Provider will do a

System Impact Study for a Point-to-Point

Transmission Service request by simulating

the proposed transaction along with all other

contracted and pending uses of the

transmission system of equal or greater

priority. Criteria will be the same as those

used to determine the ATC limits posted on

the OASIS.

Network Integration Service

The Transmission Provider will do a

System Impact Study for a Network

Integration Transmission Service request

using the criteria and assessment practices as

detailed in Parts 4 and 5 of the Transmission

Provider’s annual FERC Form 715 submittal.

Attachment E

Index of Point-To-Point Transmission Service

Customers

Customer Date of service

agreement

AES Power, Inc ................ 5–18–94

Aquila Power Corporation 10–31–96

Arkansas Electric Cooperative Corp.7–15–93 and 5–

23–97

Arkansas Power & Light

Company.

6–1–88

Associated Electric Cooperative, Inc.6–26–92 & 10–

9–92

Calpine Power Services

Company.

8–21–96

Carthage, Missouri ........... 10–25–60 & 10–

26–92

Clarksville, Arkansas ........ 3–25–86

CNG Power Services Corporation.3–20–97

Coral Power, L.L.C ........... 12–31–96

Delhi Energy Services, Inc 11–16–95

Duke/Louis Dreyfus, L.L.C 6–19–96

Eastex Power Marketing,

Inc.

5–24–96

Electric Clearinghouse, Inc 9–7–95

Customer Date of service

agreement

Enron Power Marketing,

Inc.

6–23–94

Entergy Power Marketing

Corp.

10–24–96

Entergy Services, Inc ....... 8–7–96

Federal Energy Sales, Inc 4–29–96

Grand River Dam Authority.9–9–76 & 4–27–

95

Illinois Power Company .... 2–11–97

Industrial Energy Applications, Inc.8–7–96

Jackson, Missouri ............. 6–19–92 & 12–

8–95

Jonesboro, Arkansas ........ 6–23–92, 5–31–

94, & 2–18–97

Kennett, Missouri .............. 5–22–92 & 3–

31–95

KN Marketing, Inc ............. 7–12–96

LG&E Power Marketing .... 1–27–95

Malden, Missouri .............. 8–31–93 & 10–

14–93

MidCon Power Services

Corp.

9–18–95

Minnesota Power & Light

Company.

2–18–97

Missouri Joint Municipal

Electric Utility Commission.

7–29–81

Morgan Stanley Capital

Group.

10–7–96

National Gas & Electric,

L.P.

11–26–96

New Madrid, Missouri ....... 2–18–96

Nixa, Missouri ................... 5–21–92

NorAm Energy Services,

Inc.

11–30–94

Oklahoma Municipal

Power Authority.

11–24–92

Pacificorp Power Marketing, Inc.5–15–97

PanEnergy Trading &

Marketing Services,

L.L.C.

9–13–96

Paragould, Arkansas ........ 5–23–91 & 6–2–

93

People’s Electric Cooperative.12–28–90 & 2–

3–94

Piggott, Arkansas ............. 11–19–92 & 4–

12–95

Poplar Bluff, Missouri ....... 3–23–92 & 5–

13–93

Public Service Company

of Oklahoma.

6–26–92

Rainbow Energy Marketing Corporation.7–6–94

Sikeston, Missouri ............ 9–15–92

Sonat Power Marketing,

L.P.

11–29–96

Southern Energy Trading

and Marketing, Inc.

3–31–97

Springfield, Missouri ......... 7–29–93

Tennessee Power Company.8–25–95

Union Electric Company ... 6–10–94

UtiliCorp United, Inc ......... 6–4–96

Valero Power Services

Company.

4–4–96

Western Farmers Electric

Cooperative.

11–2–92, 5–28–

93, & 8–24–94

Williams Energy Services

Company.

7–12–96

Customer Date of service

agreement

WPS Energy Services, Inc 6–4–97

Attachment F

Form of Service Agreement for Network

Integration Transmission Service

Part A: Service Agreement for Network

Integration Transmission Service

1 This Service Agreement, dated as of

llll, is entered into, by and between

Southwestern Power Administration

(Transmission Provider or Southwestern),

and llll (Transmission Customer).

11 The Transmission Provider may revise

rates for Network Integration Transmission

Service provided under this Service

Agreement pursuant to applicable Federal

laws, regulations, and policies upon written

notice to the Transmission Customer.

12 The Transmission Provider may

change the General Provisions of this

Agreement (Part C) upon written notice to the

Transmission Customer.

13 The Transmission Provider may recall

all or part of the capacity reserved under this

Service Agreement, with no less than 36

months’ notice, if such capacity is required

to fulfill the Transmission Provider’s

obligations under Section 5 of the Flood

Control Act of 1944.

2 The Transmission Customer has been

determined by the Transmission Provider to

have a Completed Application for Network

Integration Transmission Service under the

Transmission Provider’s Open Access

Transmission Tariff (Tariff).

3 The Transmission Customer has

provided to the Transmission Provider a

processing fee in accordance with Section

29.2 of the Tariff.

4 A Network Operating Agreement

(Operating Agreement) has been executed

between the Parties and is incorporated

herein and made a part hereof.

5 The Tariff as presently constituted or as

it may be revised or superseded is

incorporated herein and made a part hereof.

6 Southwestern’s rate schedule

applicable to Network Integration

Transmission Service (Rate Schedule) as

presently constituted or as it may be revised

or superseded is incorporated herein and

made a part hereof.

7 Service under this Service Agreement

shall commence on the latest of (1) llll,

or (2) the date on which construction of any

Direct Assignment Facilities and/or Network

Upgrades are completed, or (3) on the first

day of the month following execution by both

Parties. Service under this Service Agreement

shall terminate on llll.

8 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.

9 All schedules for service under this

Agreement which cross Control Area

boundaries between the Transmission
518 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Provider and interconnected utilities shall

conform to standards for scheduled

interchange of the North American Electric

Reliability Council and the applicable

regional reliability council.

10 The Transmission Provider is not

obligated under this Agreement to satisfy any

deficiencies that may occur for the

Transmission Customer as a result of

suspension or reduction of schedules by a

Third Party, nor is the Transmission Provider

obliged to notify any party if such schedules

are suspended or reduced due to the action

of a Third Party.

11 The Parties specifically recognize that

the Transmission Provider’s ability to

construct new or upgraded facilities to meet

the Designated Network Loads of the

Transmission Customer are contingent upon

the availability of funds by the U.S. Congress

to the Transmission Provider for such

purpose, as set forth in Section 3 of Part C,

‘‘General Provisions Applicable to

Transmission Service,’’ appended to this

Service Agreement.

11.1 The Transmission Provider’s

responsibilities to the Transmission

Customer pursuant to Section 28.2 of the

Tariff, or under other provisions of the Tariff

which may require construction of additional

transmission facilities in the system of the

Transmission Provider to meet Designated

Network Loads, are specifically limited to the

extent that funds are available to the

Transmission Provider for such purposes.

11.2 In the event that such facilities may

be needed to meet Designated Network

Loads, the Transmission Customer may elect

to provide, in advance, the necessary funds

for such construction by the Transmission

Provider, in accordance with a separate

construction agreement between the Parties.

The Transmission Provider’s ability to accept

such funds is subject to the authority granted

to the Transmission Provider by the U.S.

Congress.

12 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: Administrator,

Southwestern Power Administration, One

West Third Street, Suite 1400, Tulsa, OK

74103.

Transmission Customer:

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

IN WITNESS WHEREOF, the Parties have

caused this Service Agreement to be executed

by their respective authorized officials.

SOUTHWESTERN POWER

ADMINISTRATION

By: lllllllllllllllllll

ADMINISTRATOR

One West Third Street, Suite 1400

Tulsa, OK 74103

Date: llllllllllllllllll

Reviewed by Southwestern’s General

Counsel:

By: lllllllllllllllllll

(TRANSMISSION CUSTOMER)

By: lllllllllllllllllll

Title: llllllllllllllllll

Address: llllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Part B: Specifications for Network

Integration Transmission Service

1 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 Transmission

Customer’s designated Network Resources, as

set forth in Section 3 of this Part B, to the

Transmission Customer’s Designated

Network Loads which are located in the

Transmission Provider’s Control Area, as set

forth in Section 4 of this Part B.

2 The Transmission Provider will provide

non-firm transmission service (Secondary

Transmission Service) from non-designated

Network Resources to meet Designated

Network Loads, on an as-available basis,

under the terms of this Service Agreement

and in accordance Section 28.4 and other

applicable Sections of the Tariff.

3 Designated Network Resources to be

delivered into [or from] the Transmission

Provider’s Control Area on behalf of the

Network Customer:

3.1 [To be specified in each Agreement,

using information provided in the

Transmission Customer’s application for

Network Integration Transmission Service.]

3.2 Any change in Network Resources

shall be effected in accordance with

procedures set forth in the Tariff.

4 Designated Network Loads to be served

under this Service Agreement:

4.1 [To be specified in each Agreement,

using information provided in the

Transmission Customer’s application for

Network Integration Transmission Service.]

4.2 Any change in Designated Network

Loads shall be effected in accordance with

procedures set forth in the Tariff.

5 Specific operations under this Service

Agreement are set forth in the Operating

Agreement

6 Service under this Agreement may be

subject to some combination of the charges

detailed below.

6.1 The Network Transmission Capacity

Charge is set forth in the Rate Schedule. The

specific capacity which the Transmission

Customer will be invoiced for is computed in

accordance with procedures set forth in the

Tariff and updated in conformity to such

procedures. The initial charges and the

specific basis for such charges for Network

Integration Transmission Service applicable

to this Service Agreement are included in the

Operating Agreement.

6.2 Real Power Losses will be applied

and charged in accordance with the Rate

Schedule.

6.3 Ancillary Services Charges are set

forth in the Rate Schedule. The specific

Ancillary Services to be charged initially

under this Agreement are listed below.

Changes in Ancillary Services, if applicable,

are made in accordance with the Rate

Schedule.

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Zlllllllllllllllllllll

6.4 System Impact and/or Facilities Study

Charge(s): (to be filled in if applicable)

lllllllllllllllllllll

lllllllllllllllllllll

6.5 Direct Assignment Facilities Charge:

(to be filled in if applicable)

lllllllllllllllllllll

6.5 Penalties Associated with

unauthorized use of the Transmission

Provider’s Transmission System and

associated facilities, as provided in the

Operating Agreement or the Rate Schedule:

llll.

6.6 Other Charges: To be filled in and

defined if applicable.

Part C: General Provisions Applicable to

Transmission Service

1 Propriety of Rates: The Transmission

Provider shall bill the Transmission

Customer for the Transmission Customer’s

purchases of power, energy, and other

services in accordance with the Rate

Schedule, which is placed in effect pursuant

to statute.

1.1 The Transmission Customer hereby

agrees to promptly pay the Transmission

Provider under such Rate Schedule, whether

or not the Transmission Customer agrees

with the propriety or the levels of the rates

placed into effect pursuant to law, regulation,

or the order of an appropriate authority,

subject to the Transmission Customer’s rights

to terminate service.

1.2 In the event that the U.S. Congress

amends the manner in which the

Transmission Provider calculates or charges

for its products and services, the

Transmission Customer hereby agrees to

promptly pay in such an amended manner,

subject to the Transmission Customer’s right

to terminate.

2 Changes in Rates: The rates and/or

terms and conditions set forth in the Rate

Schedule may change upon confirmation

and/or approval by the appropriate authority

having responsibility to so confirm and/or

approve rate schedules, and, whether on an

interim basis or as finally confirmed and/or

approved, such rates may be increased,

decreased, modified, or superseded at any

time and from time to time.

2.1 If such rates are so increased,

decreased, modified, or superseded, the rates

and terms and conditions shall thereupon

become effective and applicable to the

Transmission Service furnished by the

Transmission Provider under this Agreement,

in accordance with and on the effective date

specified in the order of the appropriate

authority.

2.2 The Transmission Provider shall

promptly notify the Transmission Customer

in writing of the redetermination and/or

changes and modifications made in the theneffective Transmission Provider’s rate

schedules for Transmission Service.

2.3 If such notice advises that the rates to

be paid by the Transmission Customer for the

Transmission Service furnished by the

Transmission Provider under this Agreement

are greater than the then-effective rate for

such service, The Transmission Customer

may, by written notice to the Transmission

Provider at any time within 90 days
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices 519

following the date of receipt of such notice

from the Transmission Provider, terminate

this Agreement in its entirety, such

termination to become effective as of the last

day of any month following no less than 6

months after the date of receipt by the

Transmission Provider of such notice of

termination from the Transmission Customer.

2.4 In the event that the Transmission

Customer elects to terminate this Agreement

pursuant to this Section 2, the Transmission

Customer shall pay for services under this

Agreement at the then-effective rates during

the interim between the date of such notice

and the effective termination date specified

in such notice.

3 Availability of Funds to the

Transmission Provider: This Agreement and

all rights and obligations hereunder, and the

expenditure of funds by the Transmission

Provider under its provisions, are expressly

conditioned and contingent upon the U.S.

Congress’s making available (through direct

appropriation, authorization of a revolving

fund, the authority to borrow funds, or

through such other means as it may provide)

the necessary funds to enable the

Transmission Provider to carry out the

provisions of this Agreement, and if such

funds are not available, this Agreement shall

terminate and have no further force or effect

as of the last day for which funds were

available, and the Transmission Customer

hereby releases the Transmission Provider

from any and all liability for failure to

perform and fulfill its obligations under this

Agreement for that reason.

3.1 No obligation contained herein for the

future payment of money by the

Transmission Provider, or liability on the

part of the Transmission Provider for breach

of any of the provisions contained herein,

shall be binding upon or enforceable against

the Transmission Provider unless and until

funds, as provided in this Section 3, are

available out of which such obligations or

liability can be legally paid.

3.2 Nothing in this Agreement may be

considered as implying that the U.S.

Congress will, at a later date, appropriate

funds sufficient to meet any deficiencies or

obligations incurred under this Agreement.

4 Covenant Against Contingent Fees. The

Transmission Customer warrants that no

person or selling agency has been employed

or retained to solicit or secure this Agreement

upon an agreement or understanding for a

commission, percentage, brokerage, or

contingent fee, except 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 this Agreement

without liability, or, at its discretion, to add

to the Agreement price or consideration the

full amount of such commission, percentage,

brokerage, or contingent fee.

5 Termination for Breach. If either Party

breaches a material provision of this

Agreement, the other Party, at its option, may

terminate this Agreement upon 30 days’ prior

written notice of its intention to do so, and

this Agreement ipso facto shall terminate at

the end of such 30-day period unless such

violation is corrected within that period.

Neither Party shall be considered to be in

default or breach with respect to any

obligation under this Agreement if prevented

from fulfilling such obligation by reason of

an Uncontrollable Force.

6 Convict Labor. In connection with the

performance of work under this Agreement,

the Transmission Customer agrees not to

employ any person undergoing sentence of

imprisonment except as provided by Public

Law 89–176, September 10, 1965 (18 U.S.C.

4062 (c)(2)), and Executive Order 11755,

December 29, 1973.

7 Equal Employment Opportunity. During

the performance of this Agreement, the

Transmission Customer agrees to abide by

and to fulfill the nondiscrimination

requirements of the ‘‘equal opportunity

clause’’ contained in Section 202 of

Executive Order 11246 dated September 24,

1965 (30 FR 12319), any Executive Order

amending such order, and any other

Executive Order superseding such order.

8 Affirmative Action for Disabled

Veterans and Veterans of the Vietnam Era.

During the performance of this Agreement,

the Transmission Customer agrees to comply

with Section 402 of the Vietnam Era Veterans

Readjustment Assistance Act of 1974, Public

Law 93–508 as it amends Public Law 92–540,

to take affirmative action to employ and

advance in employment qualified disabled

veterans and veterans of the Vietnam era, and

to fulfill the requirements of the ‘‘affirmative

action clause,’’ 38 USCA Sections 2011 and

2012 (1979); 41 CFR 60–250 et seq.

9 Affirmative Action for Handicapped

Workers. During the performance of this

Agreement, the Transmission Customer

agrees to comply with Section 503 of the

Rehabilitation Act of 1973, Public Law 93–

516, to take affirmative action to employ and

advance in employment qualified

handicapped individuals, and to otherwise

fulfill the requirements of the ‘‘affirmative

action clause,’’ 29 USCA Section 793 (1979);

41 CFR 60–741 et seq.

10 Contract Work Hours and Safety

Standards. This Agreement, to the extent that

it is of a character specified in Section 103

of the Contract Work Hours and Safety

Standards Act, 40 U.S.C. 327–333 (1986), is

subject to the provisions of the said Act and

to regulations promulgated by the Secretary

of Labor pursuant to the said Act. The

following provisions are applicable only to

Transmission Customers which receive

service through facilities which are (1) jointly

used by the Transmission Provider and the

Transmission Customer, (2) where the

Transmission Customer would have occasion

to enter the facilities of the Transmission

Provider, (3) where the Transmission

Customer owns facilities installed on the

property of the Transmission Provider, and/

or (4) when the Transmission Customer takes

service directly from facilities owned and

maintained by the Transmission Provider.

11 Meter Tests and Adjustments. Any

metering equipment which may be used in

power accounting for Transmission Service

under this Agreement shall be inspected and

tested at least once each year by the Party

responsible, and at any reasonable time upon

request by either Party. Metering equipment

found to be defective or inaccurate shall be

repaired and readjusted or replaced by the

owner.

11.1 A meter shall be considered

inaccurate if it is found to deviate from an

accurate standard meter in excess of 0.5

percent when tested at 100 percent of load

or 1.0 percent when tested at 10 percent of

load.

11.2 If any meter inspection or test

discloses an error exceeding 2 percent, a

correction based upon the inaccuracy found

shall be made on the records of electric

service furnished since the beginning of the

monthly billing period immediately

preceding the billing period during which

the test was made, and such correction, when

made, shall constitute full adjustment of any

claim between the parties hereto arising out

of such inaccuracy of metering equipment.

12 Reliability, Safety, Health, and

Environmental Requirements in Regard to

Construction, Operation, and Maintenance

on U.S. Government Property. The provisions

of this Section 12 shall apply only if the

Transmission Customer, its agents or

contractors, or its member entities perform

maintenance, operations, or construction on

the property of the U.S. Government

(Government), or on easements shared by the

Government and the Transmission Customer.

12.1 Such construction, maintenance,

and operation shall be performed in

accordance with standards at least equal to

those provided by the National Electrical

Safety Code and shall conform to safety,

environmental, and security procedures

identified by Transmission Provider as

appropriate to each facility in which such

work is performed. The Transmission

Provider provides such written procedures in

each of the facilities it maintains and to

affected Transmission Customers.

12.2 The Transmission Customer and/or

its member entities shall take all reasonable

precautions in the performance of such work

to protect the public and the environment.

The Transmission Customer and/or its

member entities shall comply with all

applicable local, state, and Federal

regulations and requirements in the

performance of such work, including, but not

limited to, the National Environmental Policy

Act, the Clean Air Act; the Clean Water Act;

the Comprehensive Environmental

Responsibility, Compensation, and Liability

Act; the Toxic Substances Control Act; the

Resource Conservation and Recovery Act; the

Superfund Amendments and Reauthorization

Act (SARA); SARA Title III (Emergency

Planning and Community Right-to-Know Act

of 1986); and the Occupational Safety and

Health Act.

12.3 In the event that the Transmission

Provider, at its sole option and in its sole

judgment, determines that construction,

maintenance, or operation of facilities which

are performed under this Agreement by the

Transmission Customer, and/or one of its

member entities, do not meet the standards

and/or regulations and requirements

specified in this Section 12, or if the

Transmission Provider determines, in its sole

judgment, that a condition exists which

provides a potentially adverse impact (1) on

the reliability of services provided by
520 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Notices

Transmission Provider to its customers, (2)

on the safety and/or health of the public or

employees and agents of the parties hereto,

and/or (3) on the environment, then

Transmission Provider may provide written

notice to the Transmission Customer and/or

its member entity of the deficient condition;

Provided, That, if such condition, in

Transmission Provider’s sole judgment and at

Transmission Provider’s sole option, requires

immediate attention and does not allow time

for such notice, Transmission Provider will

remedy the condition and, where

appropriate, bill the Transmission Customer.

12.4 Where, in the Transmission

Provider’s sole judgment, remedy of the said

deficient condition is not time critical, the

Transmission Customer and/or its member

entity shall provide a written plan and

schedule to Transmission Provider within 30

days of receipt of the said written notice.

Such plan and schedule shall provide for

correction of the said deficiency at the

earliest possible time available to the

Transmission Customer and/or its member

entity; Provided, That, the maximum time

allowed for the Transmission Customer and/

or its member entity to correct any such

deficiency shall not exceed 18 months from

receipt of the said written notice. The

Transmission Customer shall coordinate or, if

applicable, cause its member entity to

coordinate, any work and outages which may

involve Transmission Provider’s facilities

with Transmission Provider’s Dispatch

Center (Dispatch Center) in Springfield,

Missouri.

12.5 Unless otherwise agreed in writing,

correction of deficiencies pursuant to this

Section 12 shall be at the expense of the

Transmission Customer.

12.6 If the Transmission Customer and/or

its member entity fails to correct the

deficiency within the time provided pursuant

to this Section 12, the Transmission Provider

shall have the right, at its sole option and in

its sole discretion, to terminate service

through the affected facilities until such

deficiencies are corrected to the satisfaction

of Transmission Provider.

12.7 If, within the time period provided

pursuant to this Section 12, an emergency

condition occurs which, in the sole judgment

of Transmission Provider, may cause an

adverse impact on the reliability of the

Transmission System of Transmission

Provider and/or on the environment, or

which poses a hazard to the safety and/or

health of the public or employees and agents

of the parties hereto, then Transmission

Provider may, at its sole option, remedy or

repair such condition or equipment and bill

the Transmission Customer, and the

Transmission Customer agrees to render the

Transmission Provider reimbursement.

13 Right of Installation and Access: Each

Party grants to the other permission, or will

obtain such permission for the other Party, to

install, maintain, and operate, or cause to be

installed, maintained, and operated, on the

System of Transmission Provider and on the

System of the Transmission Customer, at the

Point(s) of Delivery between the System of

Transmission Provider and the System of the

Transmission Customer utilized under this

Agreement, any and all terminal equipment

and associated electrical apparatus and

devices necessary in the performance of this

Agreement.

13.1 Each party shall permit, or shall

obtain permission for, duly authorized

representatives and employees of the other

Party to enter upon the System of the

Transmission Provider and the System of the

Transmission Customer at the said Point(s) of

Delivery for the purpose of reading or

checking meters; for inspecting, testing,

repairing, renewing, or exchanging any or all

of the equipment owned by the other party

located on such premises; or for the purpose

of performing any other work necessary in

the performance of this Agreement.

13.2 Access for any work performed by

one party under this Section 13 which may

affect the other Party’s equipment shall

normally be preceded by at least one day’s

notice to the affected Party, except in the

event of an emergency, in which case such

notice shall be made as soon as possible after

such emergency occurrence. Notice to

Transmission Provider pursuant to this

Section 13 shall be made to the Dispatch

Center.

13.3 Any access to property controlled by

the Transmission Provider shall include

notification to Transmission Provider at the

time of entry. Any employee or agent of the

Transmission Customer, or of its member

entities, who enters a Transmission Provider

facility is expected to call the Dispatch

Center from a telephone located in the

control building in that facility and to

identify himself or herself. Security devices

located in the control buildings at

Transmission Provider facilities sound an

alarm in the Dispatch Center when the

building is entered. Local law enforcement

officers may be asked to investigate any

unidentified entry.

13.4 Any equipment, apparatus, or

devices installed on the System of the

Transmission Provider by the Transmission

Customer, as provided under this Section 13,

shall be clearly and permanently marked to

indicate ownership, and, in addition, a

detailed description of each item so installed

(including, if applicable, manufacturer’s

name, serial number, model number, etc.)

shall be communicated to Transmission

Provider to aid in maintenance of plant

accounts.

13.5 In the event the equipment,

apparatus, or devices are not marked in

accordance with Section 13.4, ownership of

said equipment, apparatus, or devices shall

be presumed to be vested in Transmission

Provider.

13.6 The Transmission Customer agrees

that, if requested by Transmission Provider,

the description required under Section 13.4

shall include a detailed analysis of all

dielectrical oil, including, but not limited to,

tests for polychlorinated biphenyls (PCBs). If

such analysis indicates the presence of a

known hazardous substance, which, in the

Transmission Provider’s sole judgment,

presents a significant hazard to the

environment or to the health and safety of

employees of the parties hereto, the

Transmission Provider may require, at its

sole option, by written request, removal of

any equipment containing such substance,

and the Transmission Customer agrees to

comply with such request for removal at no

cost to Transmission Provider.

14 Right of Removal: Any and all

equipment, apparatus, or devices placed or

installed or caused to be placed or installed

by the Parties on or in the System of the

Transmission Provider or the System of the

Transmission Customer shall be and shall

remain the property of the Party owning and

installing such equipment, apparatus,

devices, or facilities, regardless of the mode

or manner of annexation or attachment to

real property, and, upon the termination of

this Agreement, the owner thereof shall have

the right to enter upon the premises or

system of the other and shall, within a

reasonable time, remove such equipment,

apparatus, devices, or facilities, subject to the

provisions of Section 13.5.

15 Right to Upgrade Facilities: The

Transmission Provider reserves the right to

modify or upgrade its Transmission System

and any of the elements which support such

Transmission System, including, but not

limited to, changes in: (1) The Transmission

Provider’s transmission voltages, (2) The

Transmission Provider’s transmission system

components, (3) The Transmission Provider’s

communications system, (4) The

Transmission Provider’s Supervisory Control

and Data Acquisition (SCADA) System, and

(5) other modifications necessary to comply

with the standards and/or regulations and

requirements mentioned in Section 16.

15.1 If, during the term of this

Agreement, the Transmission Provider

determines, in its sole judgment and at its

sole option, that modifications or upgrades to

its Transmission System and associated

facilities are required, then, in that event, the

Transmission Customer shall be responsible

for any and all costs and expenses incurred

by the Transmission Customer in order to

continue to receive services provided under

this Agreement.

15.2 If the Transmission Customer elects

not to make changes in its facilities which,

in The Transmission Provider’s judgment, are

required for the Transmission Customer to

continue to receive reliable service from the

Transmission Provider’s modified or

upgraded facilities, then the Transmission

Customer will discontinue receipt of the

services provided under this Agreement

which are dependent on such modified or

upgraded facilities, and the provisions of this

Agreement which describe such services

shall be terminated or, at the Transmission

Provider’s sole option, suspended, until the

Transmission Customer completes the

changes in its facilities which the

Transmission Provider, in its sole judgment,

deems necessary for safe and reliable service

to the Transmission Customer.

15.3 The Transmission Provider shall

notify the Transmission Customer of the

specific sections or articles of the Agreement

which are to be terminated or suspended

pursuant to this Section 15.

15.4 Any provisions of this Agreement

which are not specifically terminated or

suspended pursuant to Section 15.3 shall not

in any way be affected and shall remain in

full force and effect except insofar as the

services provided pursuant to the terminated
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