[Federal Register Volume 60, Number 46 (Thursday, March 9, 1995)]
[Notices]
[Pages 12914-12934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5816]



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DEPARTMENT OF ENERGY

Bonneville Power Administration


Proposed Wholesale Power and Transmission Rates, Negotiated 
Pacific Northwest Coordinating Agreement Rates, and Transmission Terms 
and Conditions

AGENCY: Bonneville Power Administration (BPA), DOE.

ACTION: Availability of Wholesale Power and Transmission Rates, Pacific 
Northwest Coordinating Agreement Rates and Transmission Terms and 
Conditions.

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SUMMARY: BPA File No: WP-95, TR-95, TC-95. On December 28, 1994, 
Bonneville Power Administration (BPA) published a Notice of Intent to 
Revise Transmission Rates, 59 FR 66946 and Notice of Intent to Revise 
Wholesale Power Rates, 59 FR 66947. Subsequently, BPA also published 
Federal Register Notices of Proposed Wholesale Power Rate Adjustment 
(60 FR 8496), Proposed Transmission Rate Adjustment (60 FR 8505), and 
Hearing and Opportunity for Public Comment Regarding Proposed 
Comparable Transmission Terms and Conditions (60 FR 8511). In those 
Notices, BPA stated that Wholesale Power and Transmission Rates, the 
Rates for the Pacific Northwest Coordinating Agreement, and the 
Transmission Terms and Conditions would be published separately.

DATES: The following schedule information is provided for informational 
purposes. BPA's proposed schedule, as well as a schedule for additional 
prehearing conferences will be published later. The final schedule will 
be established by the Hearing Officer at the Prehearing/Settlement 
conference on March 15, 1995.

March 15, 1995--Settlement Conference on Scheduling
October 29, 1996--Final Record of Decision published

    BPA also will be conducting public field hearings. A field hearing 
schedule will be announced at the prehearing conference. A notice of 
the dates, times, and locations of the field hearings will be made 
later through a Federal Register Notice, mailings and public 
advertising.

ADDRESSES: The date for written comments by participants must be 
received by June 16, 1995, to be considered in the Draft Record of 
Decision (ROD). Written comments should be submitted to the Manager, 
Corporate Communications--CK; Bonneville Power Administration; P.O. Box 
12999; Portland, Oregon 97212.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Hansen, Public Involvement 
and Information Specialist, at the address listed above, (503) 230-4328 
or call toll-free 1-800-622-4519. Information may also be obtained 
from:

Mr. Steve Hickok; Group Vice President, Sales and Customer Service; 
P.O. Box 3621; Portland, OR 97232 (503-230-5356)
Mr. George Eskridge; Manager, SE Sales and Customer Service District; 
1101 W. River, Suite 250; Boise, ID 83702 (208-334-9137)
Mr. Ken Hustad; Manager, NE Sales and Customer Service District; 
Crescent Court, Suite 500; 707 Main; Spokane, WA 99201 (509-353-2518)
Ms. Ruth Bennett; Manager, SW Sales and Customer Service District; 703 
Broadway; Vancouver, WA 98660 (360-418-8600)
Ms. Marg Nelson; Manager, NW Sales and Customer Service District; 201 
Queen Anne Ave. N., Suite 400; Seattle, WA 98109-1030 (206-216-4272)

    Responsible Official: Mr. Geoff Moorman, Manager for Pricing, 
Marginal Cost and Ratemaking, is the official responsible for the 
development of BPA's rates. Mr. Dennis Metcalf, BPA Transmission Team 
Lead, is the official responsible for development of BPA's transmission 
terms and conditions.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Charges Under the Amended and Integrated Pacific Northwest 
Coordination Agreement
III. Transmission Terms and Conditions

I. Introduction

    The Pacific Northwest Electric Power Planning and Conservation Act 
(Northwest Power Act) provides that BPA must establish and periodically 
review and revise its rates so that they are adequate to recover, in 
accordance with sound business principles, the costs associated with 
the acquisition, conservation, and transmission of electric power, and 
to recover the Federal investment in the Federal Columbia River Power 
System (FCRPS) [[Page 12915]] and other costs incurred by BPA. The 
Federal Power Act, as amended by the Energy Policy Act of 1992, 
provides that BPA may institute a regional hearing process on proposed 
transmission terms and conditions of general applicability.
    BPA has determined that its initial power rate proposal should 
include a stable, 5-year rate for most, if not all, of its requirements 
service. BPA anticipates that the work necessary to assemble such a 
proposal will take until late March or early April of 1995. Since such 
a rate would cover the bulk of BPA's firm sales, its impact on BPA's 
overall proposal is fundamental. Thus, the information BPA is releasing 
now should be considered preliminary. Information in BPA's preliminary 
proposal concerning rate design, product definition and pricing, 
revenue requirement, and other matters should provide parties valuable 
information that will enable them to better assess BPA's initial 
proposal when it is released in late March or early April.
    In the Federal Register notices published February 14, 1995 (60 FR 
8497, 60 FR 8505, and 60 FR 8511), BPA stated that it would publish its 
preliminary proposed rate schedules in the Federal Register. However, 
due to the length of the preliminary proposed rate schedules and 
developments related to BPA's tiered rates proposal, the preliminary 
proposed Wholesale Power and Transmission Rate schedules will not be 
published in the Federal Register. They are available from BPA's Public 
Information Center. To request the preliminary proposed Wholesale Power 
and Transmission Rate Schedules, call BPA's document request line: 
(503) 230-3478 or call toll free 1-800-622-4520.

II. Charges Under the Amended and Integrated Pacific Northwest 
Coordination Agreement

    All terms contained herein have the meaning accorded them in the 
Amended and Integrated Pacific Northwest Coordination Agreement.

A. Interchange Energy Imbalances

1. Initial Deliveries of Interchange Energy
[GRAPHIC][TIFF OMITTED]TN09MR95.000


Heat rate=10,000 BTU/kWh
Fuel price=Average natural gas price at Sumas, Washington, in $/MMBTU 
(dollars per million BTUs), as published in Inside FERC, for the twelve 
months ending the immediately preceding June 30.
Adder=4.75 mills/kWh, adjusted each August 1 beginning August 1, 1997, 
by the change in the Consumer Price Index (for all urban consumers as 
published by the Bureau of Labor Statistics) for Portland, Oregon, for 
the twelve-month period ending the immediately preceding June 30.
2. Return of Interchange Energy
    The Energy Charge for return of Interchange Energy shall be the 
charge in effect for initial deliveries of Interchange Energy at the 
time the energy being delivered as Return of Interchange Energy was 
delivered as an initial delivery of Interchange Energy.

B. Interchange Energy Service Charge

    1. No charge for energy returned between 7:00 a.m. and 10:00 p.m., 
Monday through Saturday.
    2. 2.50 mills per kilowatthour of energy returned at other hours, 
unless such energy was supplied during such other hours, or its return 
during such other hours was requested, in either of which events there 
shall be no charge.
C. Interchange Capacity and Emergency Capacity Imbalances

    $2.00 per Kilowatt Week of Demand.

D. Transfers Due to Forced Outage

1. Transfer Due to Loss of Thermal Capability
    The charge for Interchange Capacity Imbalances plus the greater of 
a) the charge for Interchange Energy Imbalances and b) the incremental 
costs of operating the resource used to supply the requested energy 
plus 4 mills per kilowatthour.
2. Transfer of Emergency Capacity
    The charge for Emergency Capacity imbalances plus the greater of a) 
the charge for Interchange Energy Imbalances and b) the incremental 
costs of operating the resource used to supply the requested energy. In 
the event that BPA requires the receiving party to return the energy 
associated with the transfer of Emergency Capacity, only the charge for 
Emergency Capacity imbalances shall apply.

E. Holding Interchange Energy Service Charge

1. Basic Charge
    2.00 mills per kilowatthour of Holding Interchange Energy on 
delivery to BPA and 1.50 mills per kilowatthour of Holding Interchange 
Energy on return from BPA (3.50 mills per kilowatthour total). A loss 
of Holding Interchange Energy because of spill will result in a refund 
of 2.00 mills per kilowatthour of Holding Interchange Energy that is 
converted to Stored Energy and spilled.
2. Reshaping Charge
    2.50 mills per kilowatthour of energy, applied in each hour during 
which the energy delivered or returned is less than the hourly average 
of energy delivered or returned during that day, to the difference 
between the daily hourly average of energy delivered or returned during 
that day and the amount of energy delivered or returned during such 
hour. The reshaping charge is in addition to the basic charge.

F. Stored Energy Service Charge

1. Charges Paid On Delivery Of Energy To A Reservoir Party
    a. 2.00 mills per kilowatthour of energy delivered to BPA on Light 
Load Hours.
    b. 1.00 mill per kilowatthour of energy delivered to BPA on Heavy 
Load Hours.
    c. No charge for energy delivered to BPA on Peak Load Hours.
2. Charges Paid On Return Of Energy Stored Less Than Two Weeks
    a. 1.00 mill per kilowatthour of energy returned from BPA on Light 
Load Hours.
    b. 3.50 mills per kilowatthour for energy returned from BPA on 
Heavy Load Hours.
    c. 5.00 mills per kilowatthour for energy returned from BPA on Peak 
Load Hours.
3. Charges Paid On Return Of Energy Stored For Two Weeks Or More
    a. No charge for energy returned from BPA on Light Load Hours.
    b. 2.50 mills per kilowatthour for energy returned from BPA on 
Heavy Load Hours.
    c. 4.00 mills per kilowatthour for energy returned from BPA on Peak 
Load Hours.
4. Charges Paid On Return Of Energy In Cases Of Imminent Spill
    a. No charge for energy returned from BPA on Light Load Hours.
    b. 2.50 mills per kilowatthour for energy returned from BPA on 
Heavy Load Hours.
    c. 2.50 mills per kilowatthour for energy returned from BPA on Peak 
Load Hours.
5. Refund Of Storage Charges In Cases Of Spill
    In the event that stored energy is not returned to a party because 
of spill on [[Page 12916]] BPA's system, or in the event that BPA 
transfers the stored energy to another Reservoir Party to avoid spill 
and the transferred energy is later spilled, BPA will refund the 
charges paid under section F.1. in an amount equal to the the charges 
paid under such section, divided by the kilowatthours of energy 
delivered to BPA, multiplied by the kilowatt hours of stored energy 
that is spilled.

G. Transfers To Avoid Spill

    1. No charge for stored energy transferred by a Reservoir Party to 
BPA in order to avoid spill.
    2. The applicable Stored Energy Service charge shall apply in the 
event that BPA accepts the transfer of stored energy to avoid spill and 
then returns the stored energy to the original delivering party.

H. Transmission Service Charges

    In any energy or capacity transaction that utilizes BPA 
transmission facilities where BPA acts solely as a transferor the 
following charges shall apply to both delivery and return of the 
energy, if applicable:
    1. 1.60 mills per kilowatthour of Interchange Energy paid by the 
receiving party.
    2. 1.75 mills per kilowatthour of Holding Interchange and Storage 
Energy paid by the party requesting the return.
    3. No charge for In Lieu Energy, except when the supplying or 
receiving party requires BPA, under the terms of the PNCA, to provide 
transmission, in which case the charge shall be 2.00 mills per 
kilowatthour of In Lieu Energy paid by the party requiring BPA to 
provide such transmission.
    4. 2.00 mills per kilowatthour of Provisional Energy paid by the 
Reservoir Party.
    5. 2.00 mills per kilowatthour of energy associated with 
Interchange Capacity and FOR Capacity paid by the party requesting the 
delivery.

I. Special Storage Arrangements

1. Minimum Rate
    a. 1.00 mills per kilowatthour for energy returned during Light 
Load Hours.
    b. 3.00 mills per kilowatthour for energy returned at other hours.
2. Flexible Rate
    The charges for special storage arrangements may be specified at a 
higher rate as mutually agreed between the party requesting the special 
storage arrangement and BPA.

III. Transmission Terms and Conditions

    The following three comparable network transmission service tariffs 
are being released on a preliminary basis. They indicate how BPA would 
apply the three types of service tariffs developed by FERC's Litigation 
Staff to the BPA network. BPA and its customers are continuing their 
discussions aimed at mutual agreement on comparable network service 
which may be different from the following. BPA's will publish and 
submit its final comparable network service proposals pursuant to the 
schedule developed at the Prehearing/Settlement Conference.

Proposed Bonneville Power Administration Network Integration Service 
Tariff Table of Contents

1. Definitions
    1.1  Annual Transmission Costs
    1.2  Application
    1.3  Bonneville Service Area
    1.4  Commission
    1.5  Control Area
    1.6  Control Area Services (or Ancillary Control Area Services)
    1.7  Customer
    1.8  Customer Electric System
    1.9  Direct Assignment Facilities
    1.10  Effective Date
    1.11  Eligible Customer
    1.12  Facilities Study
    1.13  Good Utility Practice
    1.14  Load Ratio Share
    1.15  Member System
    1.16  Native Load Customers
    1.17  Network Load
    1.18  Network Operating Agreement
    1.19  Network Resources
    1.20  Network Transmission System
    1.21  Network Upgrade
    1.22  Opportunity Costs
    1.23  Service Agreement
    1.24  System Impact Study
2. Nature of Network Integration Service
    2.1  Scope of Service
    2.2  Firm Service
    2.3  Nonfirm Service
    2.4  Restrictions on Use of Service
    2.5  Bonneville Right to Displace
3. Availability of Network Integration Service
    3.1  General Conditions
    3.2  Control Area Requirement
    3.3  Bonneville Responsibilities
    3.4  Customer Redispatch Obligation
4. Initiating Service
    4.1  Conditions Precedent for Receiving Service
    4.2  Application Procedures
    4.3  Insufficient Capacity
    4.4  Direct Assignment Facilities
    4.5  Queue Priority
    4.6  Technical Arrangements to be Completed Prior to 
Commencement of Service
    4.7  Customer Facilities
    4.8 Termination of Service
5. Network Resources
    5.1  Designation of Network Resources
    5.2  Operation of Network Resources
    5.3  Transmission Arrangements for Network Resources Located 
Outside the Bonneville Control Area
    5.4  Designation of New Network Resources
    5.5  Reserve Margin Limitation on Designation of Network 
Resources
    5.6  Customer Owned Transmission Facilities
6. Designation of Member Systems by Customers Receiving Network 
Integration Service
    6.1  Member Systems
    6.2  New Member Systems Connected with Bonneville
    6.3  New Member Systems Not Connected with Bonneville
    6.4  New Interconnection Points
7. Transmission Facilities or Upgrades Related to Designation of New 
Network Resources and Member Systems
    7.1  System Impact Study
    7.2  Facilities Study
    7.3  Due Diligence
    7.4  Incremental Transmission Costs Associated with Adding New 
Network Resources
    7.5  Changes in Service Requests
    7.6  Annual Load and Resource Information Updates
8. Ancillary Services
9. Transmission Losses
10. Curtailments
    10.1  System Reliability
    10.2  Transmission Constraints
    10.3  Cost Responsibility for Relieving Capacity Constraints
    10.4  Load Curtailments
    10.5  Curtailment Procedures
    10.6  Curtailment Allocations
11. Rates and Charges
12. Billing and Payment
13. Booking of Costs Attributable to Bonneville
14. Indemnification and Liability
    14.1  Western Interconnected Systems Agreement
    14.2  No Western Interconnected Systems Agreement
    14.3  Uncontrollable Forces
15. Regulatory Filings
16. Operating Arrangements
    16.1  Operation of the Customer Control Area
    16.2  Network Operating Agreement
17. Network Operating Committee
18. Procedures to Resolve Transmission Complaints
19. Creditworthiness
    Proposed Network Integration Service Tariff
    Bonneville will provide Network Integration Service to Eligible 
Customers pursuant to the terms and conditions of this Tariff.

1. Definitions

1.1  Annual Transmission Costs
    The total annual cost of the Network Transmission System shall be 
the amount specified in the Network Integration Transmission Rate 
Schedule (NT-95) or its successor.
1.2  Application
    A written request for Network Integration Service satisfying the 
provisions of this Tariff. [[Page 12917]] 
1.3  Bonneville Service Area
    The area consisting of the States of Oregon, Washington, and Idaho; 
the portion of the State of Montana west of the Continental Divide, and 
such portions of the States of Nevada, Utah, and Wyoming as are within 
the Columbia River drainage basin; and any contiguous areas, not in 
excess of 75 air miles from the just described area, which are a part 
of the service area of a rural electric cooperative customer served by 
Bonneville on the effective date of this Tariff which has a 
distribution system from which it serves both within and without such 
area.
1.4  Commission
    The Federal Energy Regulatory Commission (FERC) or any successor 
Federal agency having regulatory jurisdiction over this Tariff.
1.5  Control Area
    The set of generating units, electrical loads, and transmission 
facilities managed and overseen by a utility that is responsible for 
matching its generation and loads on an instantaneous basis.
1.6  Control Area Services (or Ancillary Control Area Services)
    Any functions, practices, or services required by North American 
Electric Reliability Council (NERC), Western Systems Coordinating 
Council (WSCC), Northwest Power Pool (NWPP), or Bonneville Reliability 
Criteria and Standards (BRCS) for the safe and reliable operation of a 
Control Area and the connection of loads and resources to a Control 
Area.
1.7  Customer
    An Eligible Customer that has executed a Service Agreement for 
Network Integration Service pursuant to this Tariff.
1.8  Customer Electric System
    The electric system operated by a Customer to serve its Network 
Load in accordance with the terms of this Agreement and applicable 
reliability and operating criteria.
1.9  Direct Assignment Facilities
    Transmission facilities which are not an integral part of, and do 
not support, the Network Transmission System and that are constructed 
by Bonneville to satisfy an Application under this Tariff, the addition 
of a new Member System, or addition of a new Network Resource and the 
costs of which Bonneville may recover directly from the Customer as 
provided in the NT-95 Rate Schedule or its successor.
1.10  Effective Date
    The date upon which the Parties execute a Service Agreement in 
accordance with the terms and conditions of this Tariff.
1.11  Eligible Customer
    A private or public corporation, governmental agency or authority, 
joint action agency, municipality, rural electric membership 
corporation or cooperative, person, or any lawful association of the 
foregoing which engages in the generation, transmission or distribution 
of electric energy at wholesale or retail and which will rely upon 
Bonneville's Network Transmission System to integrate effectively its 
Network Load and Network Resources. Bonneville's direct service 
industrial customers on the effective date of this Tariff shall be 
considered Eligible Customers. Other than Bonneville's direct service 
industrial customers, an Eligible Customer shall not include any entity 
for which the Commission is prohibited under sections 212(g) and (h) of 
the Federal Power Act (FPA) from ordering the provision of transmission 
service. An entity shall be an Eligible Customer only to the extent 
that it requests service to integrate some or all of the Network Loads 
of Eligible Customer(s) and a comparable amount of resources that have 
been designated Network Resources of such Eligible Customer(s).
1.12  Facilities Study
    An engineering study conducted by Bonneville to determine the 
required modifications to Bonneville's Transmission System, including 
the cost and scheduled completion date for such modifications, which 
may be required in order to provide a requested Network Integration 
Service, to add a new Network Customer, to add a new Member System, or 
to add a Network Resource.
1.13  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 the lowest 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 a range of 
acceptable practices, methods, or acts.
1.14  Load Ratio Share
    Ratio of a Customer's Network Load to Bonneville total load 
computed in accordance with the NT-95 Rate Schedule or its successor.
1.15  Member System
    An Eligible Customer operating as a part of a lawful combination, 
partnership, association, or joint action agency composed exclusively 
of Eligible Customers.
1.16  Native Load Customers
    Those wholesale and direct service industrial power sales customers 
on whose behalf Bonneville, by statute or contract, has an obligation 
to plan, construct and operate its system to provide reliable electric 
service.
1.17  Network Load
    The designated load of a Customer in Bonneville's Service Area, 
including the entire load of all Member Systems designated pursuant to 
section 6. A Customer's Network Load shall not be reduced to reflect 
any portion of such load served by the output of any generating 
facilities owned, or generation purchased, by the Customer or its 
Member Systems.
1.18  Network Operating Agreement
    An agreement that provides the technical and engineering provisions 
necessary to establish and operate a Customer Control Area utilizing 
Bonneville's Network Transmission System.
1.19  Network Resources
    Designated non-Federal resources used by a Customer to provide 
electric service to its Network Load consistent with reliability 
criteria generally accepted in the region. Network Resources shall 
include all owned and purchased Customer non-Federal generating 
resources that are located in the Bonneville Control Area or connected 
to the Electric System of such Customer or any Member System. A 
Customer also may designate as Network Resources any non-Federal 
generating resources (or portion thereof) located in another utility's 
Control Area and power purchased by the Customer from another utility 
and used to provide reliable service to Network Load. Network Resources 
shall not include that portion of the capacity of any such generating 
resource that is committed on a firm basis for sale to third parties. 
[[Page 12918]] 
1.20  Network Transmission System
    The transmission facilities owned and/or operated by Bonneville 
excluding interties and generation integration facilities.
1.21  Network Upgrade
    Upgrades to transmission facilities that are integrated with and 
support Bonneville's Network Transmission System and which are 
constructed by Bonneville to satisfy, at least in part, an Application, 
the addition of a new Member System, or the addition of a new Network 
Resource and the costs of which Bonneville may recover directly from 
the Customer as provided in the NT-95 Rate Schedule or its successor.
1.22  Opportunity Costs
    Net loss of revenue or the net increase in generation cost caused 
by displacing one transaction with another when the transmission system 
is so constrained that both transactions cannot be handled at the same 
time. Opportunity costs do not include any loss of revenues resulting 
from competition or foregone revenues from purchase and resale 
transactions to serve other than Native Load Customer or Network Load.
1.23  Service Agreement
    The initial agreement and amendments thereto between Bonneville and 
a Customer for Network Integration Service under this Tariff.
1.24  System Impact Study
    An assessment by Bonneville of: (i) the adequacy of the Network 
Transmission System to accommodate a request for Network Integration 
Service; and/or (ii) the incremental new facilities or upgrades that 
would be needed by Bonneville in providing such service pursuant to the 
terms of this Tariff.

2. Nature of Network Integration Service

2.1  Scope of Service
    Network Integration Service is a transmission service that allows 
Customers to efficiently and economically utilize their Network 
Resources and other generation resources to serve their Network Load 
located in Bonneville's Service Area. Network Integration Service 
requires the Customer to provide, or purchase from Bonneville, certain 
Ancillary Control Area Services. Bonneville will offer these Ancillary 
Control Area Services, pursuant to an appropriate service agreement, on 
a nondiscriminatory basis to any Customer required hereunder to 
purchase or provide such services as a precondition to receiving 
Network Service.
    In the event that Bonneville provides a credit for the cost of 
certain Customer-owned transmission facilities pursuant to section 5.6, 
Bonneville shall be entitled to use such facilities, at no additional 
charge, to provide the same scope of services for its Native Load 
Customers and its Network Integration Service Customers, as those 
services made available to the Customer pursuant to this Tariff. In the 
absence of such a credit, Bonneville shall be entitled to such service 
pursuant to a FERC-approved tariff that provides service comparable to 
that which the Customer provides for its own load.
2.2  Firm Service
    A Customer shall have the right to use this Tariff for the delivery 
of power from Network Resources to Network Loads on a basis that is 
comparable to Bonneville's use of its Network Transmission System to 
reliably serve its Native Load Customers. Except as otherwise provided 
in section 2.5, service over Bonneville's Network Transmission System 
for the delivery of power from Network Resources to Network Load shall 
have priority over all nonfirm uses of Bonneville's Network 
Transmission System by Bonneville or third parties.
2.3  Nonfirm Service
    A Customer also may use this Tariff to deliver energy to its 
Network Loads from resources that have not been designated as Network 
Resources. Such deliveries shall be on a nonfirm basis, subject to 
available capacity, but on an equal basis with Bonneville's use of 
economy energy to service Native Load Customers, subject to section 2.5 
below, and at no additional transmission charge. Curtailments of 
nonfirm service shall be governed by section 10 and shall be 
implemented on a nondiscriminatory basis among all other nonfirm uses 
of Bonneville's Network Transmission System, including Bonneville's 
nonfirm uses of the system, except where such service is displaced 
pursuant to section 2.5 below.
2.4  Restrictions on Use of Service
    Network Integration Service shall not be used for: (i) wholesale 
sales of capacity or energy by the Customer or its Member Systems to 
third parties; or (ii) directly or indirectly providing transmission 
service by the Customer to third parties. An Eligible Customer may not 
receive service pursuant to more than one service agreement that 
applies this Tariff during any billing period.
2.5  Bonneville Right to Displace
    Bonneville shall have the right to displace Customer Network 
Resources and nonfirm purchases, at a cost which keeps the Customer 
whole, in the event of a transmission bottleneck to the extent that 
such displacement reduces the bottleneck, if Bonneville finds it 
necessary in order to avoid spill on the Federal power system or on the 
systems of Network Integration Service Customers.

3. Availability of Network Integration Service

3.1  General Conditions
    In accordance with the provisions of this Tariff, Network 
Integration Service shall be provided by Bonneville to allow a Customer 
to integrate, plan, economically dispatch, and regulate designated 
Network Resources to serve the Customer's consolidated Network Load, 
via Bonneville's Network Transmission System, as a single Control Area 
in the same manner that Bonneville performs those functions for 
Bonneville's Native Load Customers.
3.2  Control Area Requirement
    As a condition of obtaining Network Integration Service, the 
Customer shall: (i) operate as a Control Area under applicable 
guidelines of the NERC, the WSCC, the NWPP, and BRCS; or (ii) satisfy 
its responsibility to be operated as a Control Area by contract with 
Bonneville; or (iii) by contract with another entity which Bonneville 
accepts as sufficient to satisfy NERC, WSCC, NWPP, and BRCS 
requirements. Bonneville shall not unreasonably refuse to accept 
contractual arrangements with another entity for such service.
3.3  Bonneville Responsibilities
    Bonneville shall plan, construct, operate, and maintain its Network 
Transmission System in accordance with Good Utility Practice in order 
to provide the Customer with Network Integration Service within and 
across Bonneville's Control Area in accordance with this Tariff. 
Bonneville shall include the 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 Customer's Network Resources to 
serve Network Load on a basis comparable to Bonneville's delivery of 
its own generating and purchased resources to Bonneville's Native Load 
Customers. If the Customer meets its Control Area responsibilities 
without placing its [[Page 12919]] loads and resources in Bonneville's 
Control Area, power scheduling will be provided consistent with normal 
utility practices for scheduling power between Control Areas.
3.4  Customer Redispatch Obligation
    As a condition of receiving Network Integration Service, a Customer 
agrees to redispatch its Network and other resources as requested by 
Bonneville to create additional firm transmission capacity on 
Bonneville's Network Transmission System to allow Bonneville to provide 
new firm transmission service. Whenever a Customer redispatches its 
Network and other resources pursuant to this section it shall be 
compensated by Bonneville for the Opportunity Costs it incurs. To the 
extent practicable, the redispatch of resources pursuant to this 
section shall be on a least cost, nondiscriminatory basis as between 
all Network Integration Customers and Bonneville. The Customer shall be 
compensated for redispatching resources pursuant to the NT Rate 
Schedule or its successor.

4. Initiating Service

4.1  Conditions Precedent for Receiving Service
    Subject to the terms and conditions of this Tariff, Bonneville 
shall provide Network Integration Service within Bonneville's Service 
Area to any Eligible Customer, provided that: (i) the Eligible Customer 
has completed an Application for Network Integration Service as 
provided under this Tariff; (ii) the Eligible Customer and Bonneville 
have completed the technical arrangements set forth in section 4.6 
below; and (iii) the Eligible Customer has executed a Service 
Agreement.
4.2  Application Procedures
    An Eligible Customer requesting service under this Tariff must 
submit a written Application to: Bonneville Power Administration, 
Attention: Manager, Transmission Business, P.O. Box 3621; Portland, 
Oregon, 97208-3621 as far as possible in advance of the calendar month 
in which service is to commence. A completed Application shall provide 
all of the following information:
    (i) The identity, address, and telephone number of the party 
requesting service and of the party's designated contact person.
    (ii) A statement that the party requesting service is, or will be 
upon commencement of service, an Eligible Customer under this Tariff.
    (iii) A description of the Network Load (subdivided into the load 
of any Member Systems whose loads are designated as Network Load). 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 
Bonneville substation at the same transmission voltage level. The 
description should include a 10-year forecast of summer and winter load 
and resource requirements beginning with the first year after the 
Effective Date.
    (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 
curtailed), that portion of the load subject to curtailment, the 
conditions under which a curtailment can be implemented and any 
limitations of the amount and frequency of curtailments. An Eligible 
Customer should identify the amount of curtailed 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: Data on 
the Eligible Customer's Network Resource characteristics in an 
appropriate dynamic data format (PSS/E or WSCC). Unit size and amount 
of capacity from that unit to be designated as Network Resource:

--Var capability of all generators
--Operating restrictions
--Any periods of restricted operations throughout the year
--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 ($/megawatthour) for redispatch 
computations.
--Arrangements governing sale and delivery of power to third parties 
from generating facilities located in the Bonneville 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 Bonneville Network 
Transmission System.

    (vi) Description of Eligible Customer's Transmission System:

--Data on the Eligible Customer's transmission system characteristics 
in an appropriate load flow format (PSS/E, or WSCC).
--Description of all lines and transformers operated at 50 kilovolt and 
higher
--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 section 4.2(v)
--Ten (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 transmission 
facilities

    (vii) Service commencement date and the term of the requested 
Network Integration Service:
    If an Application fails to meet the requirements of this Tariff, 
Bonneville shall notify the Eligible Customer requesting service within 
10 days of receipt and specify the reasons for such failure. Whenever 
possible Bonneville shall attempt to remedy minor deficiencies in the 
Application through informal communications with the Eligible Customer.
4.3  Insufficient Capacity
    In the event that there is insufficient capacity to initially meet 
the request, Bonneville shall offer, at Customer's expense, to make 
sufficient capacity available through construction, redispatch or by 
otherwise rearranging its own use of the Network Transmission System.
4.4  Direct Assignment Facilities
    At the Customer's request, when required to make deliveries 
hereunder, Bonneville shall also provide Direct Assignment Facilities 
provided that the Customer agrees to pay for such Direct Assignment 
Facilities. The Customer shall pay Bonneville for such facilities in 
accordance with the applicable rate schedule.
4.5  Queue Priority
    Applications for Network Integration Service or requests to add 
service for new Network Resources or new Member Systems, along with 
applications for other Bonneville firm transmission services, will be 
assigned a priority according to the date on which the application is 
received, with the earliest application receiving the highest priority. 
[[Page 12920]] 
4.6  Technical Arrangements to be Completed Prior to Commencement of 
Service
    Service under this Tariff shall not commence until Bonneville and 
the Customer, or a third party which has contracted to provide Control 
Area Services, have installed all metering facilities, remote terminal 
units, communications equipment, and associated equipment necessary to 
ensure that the Customer's Network Loads and Network Resources operate 
in a Control Area that is consistent with NERC, WSCC, NWPP, and BRCS 
guidelines and any additional requirements reasonably and consistently 
imposed to ensure the reliable operation of the Network Transmission 
System. Bonneville shall exercise reasonable efforts, in coordination 
with the Customer, to complete such arrangements as soon as practical 
after the Effective Date.
4.7  Customer Facilities
    Bonneville's provision of Network Integration Service shall be 
conditioned upon the Customer's constructing, maintaining, and 
operating the facilities on its side of each point of interconnection 
that are necessary to reliably interconnect and deliver power from the 
Network Transmission System to the Customer and/or its Member Systems. 
The Customer shall be solely responsible for constructing and/or 
installing and operating any incremental facilities on the Customer's 
side of each such interconnection point.
4.8  Termination of Service
    A Customer may terminate service under this Tariff no earlier than 
2 years after providing Bonneville with written notice of the 
Customer's intention to terminate. A Customer's provision of notice to 
terminate service under this Tariff shall not relieve the Customer of 
its obligation to pay Bonneville any rates, charges, or fees, including 
charges related to the construction of incremental facilities, for 
service previously provided under the applicable Service Agreement or 
the Network Operating Agreement, and which are owed to Bonneville as of 
the date of termination.
5. Network Resources

5.1  Designation of Network Resources
    All of the owned and/or purchased resources that were serving such 
Customer's or its Member Systems' Network Loads under firm agreements 
entered into on or before the Effective Date shall be designated as 
Network Resources as of the Effective Date. A Customer may terminate 
the designation of a generating resource located within Bonneville's or 
the Customer's Control Area as a Network Resource if the Customer 
provides 30 days' written notification to Bonneville that the 
terminated resource will not be operated to serve any portion of the 
Customer's Network Load for the time period that such resource is not 
designated as a Network Resource. The Customer may later redesignate 
the resource as a Network Resource in accordance with the provision of 
section 5.4. The Customer also may terminate the designation of all or 
part of a generating resource not located within the Control Area of 
Bonneville or the Customer as a Network Resource upon 30 days' notice 
to Bonneville. If the Customer has committed to make a firm system sale 
(to a third party) using a portion of the capacity of more than one 
Network Resource, Bonneville will treat each Network Resource as making 
a representative portion of such capacity sale based on the likely 
loadings of each generating resource that will occur under 
representative system conditions (e.g., off-peak and on-peak).
5.2  Operation of Network Resources
    A Customer shall not operate any of its generating facilities 
located in the Customer's or Bonneville's Control Areas such that the 
output of those facilities exceeds the sum of: (i) the capacity from 
those facilities that have been designated as Network Resources plus; 
(ii) the amount of power from those facilities scheduled for delivery 
to a third party. When a Customer sells power or energy from a Network 
Resource located within Bonneville's Control Area, the Customer shall 
arrange transmission service under the applicable Bonneville 
Transmission Service Tariff.
5.3  Transmission Arrangements for Network Resources Located Outside 
the Bonneville Control Area
    It shall be the Customer's responsibility to make any transmission 
arrangements necessary for delivery of power produced from a Network 
Resource located outside the Bonneville Control Area to the Network 
Transmission System. If a Customer designates as a Network Resource 
less than the full amount of the maximum net dependable capability of a 
generating resource located within the Control Area of another utility, 
the Customer may request Bonneville to supply other transmission 
service for that portion of the maximum net dependable capability of 
the generating resource which is not designated as a Network Resource.
5.4  Designation of New Network Resources
    A Customer may request the designation of a new Network Resource by 
providing Bonneville with as much advance written notice as 
practicable, but not less than 60 days. Bonneville must satisfy the 
requirements of applicable environmental statutes prior to committing 
to the additional service. In determining whether the Customer has 
provided sufficient notice for Bonneville to provide firm service from 
a newly designated Network Resource, Bonneville shall apply the same 
standards as it would apply to its own newly designated resources. 
Where a Customer proposes to substitute a new Network Resource for an 
existing Network Resource, Bonneville shall not unreasonably withhold 
agreement where agreement would impose no economic, technical, or 
unacceptable environmental burdens on Bonneville. To the extent 
insufficient notice is provided for Bonneville to construct 
transmission facilities or upgrades determined in accordance with 
section 7 as necessary for delivery of a new Network Resource to the 
Customer's Network Load, Bonneville shall not be obligated to deliver 
power from such Network Resource pursuant to this Tariff until all 
needed facilities or upgrades are completed and all environmental 
responsibilities have been satisfied. Notice of a Customer's intent to 
designate a new Network Resource shall include sufficient engineering, 
and technical information to permit Bonneville to perform a System 
Impact Study addressing the transmission requirements associated with 
delivery of such new Network Resource to the Customer's Network Load as 
set forth in section 4.2.
5.5  Reserve Margin Limitation on Designation of Network Resources
    A Customer shall designate an amount (in MW) of Network Resources 
that enables the Customer to operate the Customer Control Area with an 
installed reserve margin not to exceed 25 percent of the Customer's 
reasonably forecasted consolidated Network Load. Once the designation 
of a Network Resource becomes effective, the Customer shall not be 
penalized if reasonably forecasted loads do not materialize. A Customer 
may designate a new Network Resource that would cause it to exceed the 
reserve margin limitation so long as the addition of such resource 
would be consistent with the Customer's obligations to serve its 
Network Load in [[Page 12921]] accordance with Good Utility Practice 
and the Customer reasonably forecasts that its projected installed 
reserve margin will be in compliance with this reserve criterion within 
3 years of the date on which such new Network Resource becomes 
operational.
    Bonneville shall provide an exemption from the 25 percent reserve 
margin limitation if the Customer demonstrates that it must maintain a 
higher level of reserves to operate reliably under NERC, WSCC, NWPP, 
and BRCS guidelines and that it has undertaken reasonable efforts to 
procure coordination services (such as reserve sharing) that would 
reduce its required level of reserves. If an exemption applies, the 
Customer may designate an amount of Network Resources equal to the 
amount necessary to operate reliably under the above referenced 
guidelines.
    Bonneville is subject to the above referenced requirements in 
determining the resources it needs to operate reliably. Bonneville may 
not maintain a reserve margin in excess of that permitted any Network 
Customer under this Tariff. Each year, Bonneville submits to WSCC a 10-
year resource plan indicating the generating resources Bonneville will 
use to operate reliably under regional and national reliability 
standards. This plan shall be made available to the Customer upon 
request.
5.6  Customer Owned Transmission Facilities
    The Customer will be entitled to receive a Customer Facilities 
Credit as defined in the NT-95 Rate Schedule or its successors if 
transmission facilities as described in such rate schedule are made 
available for use under this Tariff.

6. Designation of Member Systems for Customers Receiving Network 
Integration Service

6.1  Member Systems
    A Customer may designate the individual Member Systems that will be 
included in the Customer Control Area and on whose behalf Bonneville 
shall provide Network Integration Service. The Member Systems as of the 
Effective Date shall be specified in the Service Agreement.
6.2  New Member Systems Connected With Bonneville
    A Customer shall provide Bonneville with as much written notice as 
reasonably practicable of the designation of additional entities that 
will be added to its Control Area as new Member Systems. Bonneville 
shall provide Network Integration Service for any such new Member 
System, provided that: (i) Bonneville reasonably determines in 
accordance with section 7 that the Network Transmission System can 
reliably accommodate such new Member System; and (ii) the Customer 
agrees to pay the costs of any incremental transmission facilities 
upgrades that Bonneville reasonably determines must be installed to 
interconnect reliably such new Member System with the Bonneville 
Network Transmission System. The engineering and technical 
specifications for any such new interconnection shall be set forth in 
an amendment to the Service Agreement under the Tariff. Until such 
incremental facilities are completed, Bonneville shall agree to provide 
Network Integration Service out of existing transmission capacity, 
pursuant to the prioritization described in section 4.5 above, to the 
extent such service would not impair the reliability of service to 
Native Load Customers, firm transmission service customers, and other 
Network Service Customers. In addition if the Customer so elects, to 
the extent the requested service can be provided in whole or in part by 
redispatching the system, the Customer shall be assigned the 
incremental costs caused by the redispatch.
6.3  New Member Systems Not Connected with Bonneville
    To the extent that a Customer desires to obtain transmission 
service for a Member System that is not connected to the Network 
Transmission System, the Customer shall have the option of: (i) 
electing to include such Member System in the Customer Control Area by 
including the entire load of that Member System as Network Load for all 
purposes under this Tariff and designating Network Resources in 
connection with such additional Network Load; or (ii) excluding the 
load of that Member System from its Network Load and purchasing Point-
to-Point Transmission for power transfers between the Customer's 
Control Area and the new Member System not connected to Bonneville's 
system. Transmission across third-party systems is not covered by this 
Tariff. To the extent that a Customer gives notice of its intent to add 
a new Member System pursuant to this section and sufficient capacity is 
not available on the Network Transmission System to provide the 
requested service pursuant to the prioritization described in section 
4.5 above, without impairing reliability to Bonneville's Native Load 
Customers and other firm uses of the system, the Customer shall be 
charged for the cost of any incremental facilities determined necessary 
by Bonneville to provide Network Integration Service. In addition, if 
the Customer so elects, to the extent the requested service can be 
provided in whole or in part by redispatching the system, the Customer 
shall be assigned the incremental costs caused by the redispatch. 
Bonneville shall be responsible for the cost of any incremental 
facilities or system redispatch costs associated with adding new 
resources to serve its Native Load Customers, as provided in section 7.
6.4  New Interconnection Points
    To the extent a Customer desires to add a newly constructed 
interconnection point between the Network Transmission System and a 
Member System, the Customer shall provide Bonneville with as much 
written notice as reasonably practicable; however, Bonneville shall not 
be obligated to provide additional service with respect to such 
interconnection point until such new interconnection is established. 
Bonneville shall add such new interconnection point provided that 
Bonneville reasonably determines that the Bonneville Network 
Transmission System can reliably accommodate such new interconnection 
point. The Customer shall be responsible for the costs of any 
incremental facilities associated with such new interconnection. The 
engineering and technical specifications for such new interconnection 
point shall be set forth in a separate interconnection agreement to be 
negotiated by the Parties.

7. Transmission Facilities or Upgrades Related to Designation of New 
Network Resources and Member System

7.1  System Impact Study
    Once a Customer provides Bonneville with notice of its intent to 
designate a new Network Resource pursuant to section 5.4 or a new 
Member System pursuant to section 6, Bonneville and the Customer shall 
execute an agreement under which Bonneville shall perform a System 
Impact Study to determine the incremental transmission facilities, if 
any, attributable to integrating such new Network Resource or new 
Member System into Bonneville's Network Transmission System. In 
performing the System Impact Study, Bonneville shall apply the same 
methods and criteria that it employs in integrating new owned or 
purchased resources acquired by Bonneville to serve Bonneville's Native 
Load Customers. Bonneville shall complete the System Impact Study 
within 60 days or will provide the Customer a written explanation of 
when [[Page 12922]] the study will be completed and the reasons for the 
delay. A Customer shall be responsible for the cost of the System 
Impact Study and shall be provided with the results thereof, including 
relevant workpapers.
7.2  Facilities Study
    Based on the results of the System Impact Study, Bonneville also 
may perform, pursuant to a separate agreement with the Customer, a 
Facilities Study addressing the detailed engineering, design, and cost 
of incremental transmission facilities. The Facilities Study shall be 
completed as soon as reasonably practicable and will be used by 
Bonneville to provide the Customer with an estimate of the cost for 
constructing incremental facilities. The Customer shall be responsible 
for the costs of the Facilities Study and shall be provided with the 
results thereof, including relevant workpapers. Bonneville shall be 
responsible for the costs of any Facilities Study undertaken to 
determine the costs of adding incremental facilities associated with 
Bonneville's addition of new owned or purchased resources used to serve 
Bonneville's load.
7.3  Due Diligence
    Bonneville shall use due diligence to install any transmission 
facilities required to integrate a new Network Resource or to 
interconnect a new Member System designated by the Customer in 
accordance with section 6.3.
7.4  Incremental Transmission Costs Associated With Adding New Network 
Resources and New Member Systems
    After the Effective Date, Customer and Bonneville each shall be 
responsible for the incremental transmission facility costs associated 
with integration of new Network Resources, new Member Systems and new 
Native Load Customers. The costs of any such incremental facilities 
directly assigned to Bonneville or the Customer shall not be included 
in the calculation of Bonneville's Annual Transmission Costs. The costs 
of such facilities shall be determined in a formal Bonneville rate 
hearing pursuant to section 7(i) of the Northwest Power Act. Any 
incremental facilities costs assigned to the Customer shall be 
reflected in an amendment to the Service Agreement.
7.5  Changes in Service Requests
    Under no circumstances shall a Customer's decision to cancel or 
delay the addition of a new Network Resource and/or designation of a 
new Member System in any way reduce or relieve the Customer's 
obligation to pay the costs of any incremental facilities constructed 
by Bonneville and charged to the Customer pursuant to this section; 
provided, however, that upon receipt of a Customer's written notice of 
such a cancellation or delay, Bonneville shall use the same reasonable 
efforts to mitigate the costs and charges owed to Bonneville as it 
would to reduce its own costs and charges.
7.6  Annual Load and Resource Information Updates
    A Customer shall provide Bonneville with annual updates of Network 
Load and Network Resource forecasts consistent with those included in 
its Application for Network Integration Service under this Tariff. The 
Customer also shall provide Bonneville with timely written notice of 
material changes in any other information provided in its Application 
relating to the Customer's Network Load, Network Resources, its 
transmission system, or other aspects of its facilities or operations 
affecting Bonneville's ability to provide reliable service under this 
Tariff.

8. Ancillary Services

    A customer may purchase the ancillary services necessary for 
prudent utility operations from Bonneville or from another supplier 
where the purchase is technically feasible and consistent with NERC and 
WSCC requirements.

9. Transmission Losses

    Transmission losses shall be determined on the basis of average 
estimated system losses. The Customer shall compensate Bonneville for 
losses by either providing additional energy for losses associated with 
service pursuant to this Tariff or by buying losses from Bonneville in 
accordance with Bonneville's Firm Power Products and Services Rate 
Schedule or its successor.

10. Curtailments

10.1  System Reliability
    Notwithstanding any other provisions of this Tariff, Bonneville 
reserves the right, consistent with Good Utility Practice to curtail 
Network Integration Service, without liability on Bonneville's part, to 
make necessary adjustments to, changes in, or repairs on its lines, 
substations, and facilities, and in cases where the continuance of 
Network Integration Service would endanger persons or property. In the 
event of any adverse condition(s) or disturbance(s) on the Bonneville 
system or on any other system(s) directly or indirectly interconnected 
with the Bonneville system, Bonneville, consistent with Good Utility 
Practice, also may curtail Network Integration 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. Bonneville shall 
give Customers as much advance notice as is practicable in the event of 
such curtailments. Any curtailments of Network Integration Service will 
be not unduly discriminatory relative to Bonneville's use of the 
Network Transmission System on behalf of its Native Load Customers.
10.2  Transmission Constraints
    During any period when Bonneville determines that a transmission 
constraint exists on the Network Transmission System, and such 
constraint may impair the reliability of the Bonneville system, 
Bonneville shall take whatever actions, consistent with Good Utility 
Practice, that are reasonably necessary to maintain the reliability of 
the Bonneville system and to avoid curtailment of service. To the 
extent Bonneville determines that the reliability of the Network 
Transmission System can be maintained by redispatching resources 
(including reductions in off-system purchases and sales), Bonneville 
shall initiate procedures pursuant to the Network Operating Agreement 
or pursuant to provisions in individual service agreements to 
redispatch Bonneville's and its Customers' resources on a least-cost 
basis without regard to the ownership of such resources. To the extent 
and for the duration that it is determined necessary to relieve a 
transmission constraint to reliably serve Bonneville Native Load 
Customers and a Customer's Network Load, Bonneville and its Customers 
shall be required to redispatch their resources (including reducing 
purchases and sales), in accordance with the least-cost redispatch 
procedures implemented by Bonneville pursuant to the Network Operating 
Agreement or other agreement. Any redispatch under this section shall 
not be unduly discriminatory as between Bonneville and its Customers. 
To the extent reasonable, practicable, and consistent with Good Utility 
Practice, Bonneville shall curtail, on a pro rata basis, all similarly 
situated uses (e.g., nonfirm uses would be curtailed first, and then 
firm uses) that are affected by the emergency. [[Page 12923]] 
10.3  Cost Responsibility for Relieving Capacity Constraints
    Whenever Bonneville implements least-cost redispatch procedures to 
relieve a capacity constraint, Bonneville shall determine the total 
Opportunity Cost impact of such procedures. Bonneville and its 
Customers shall each bear a proportionate share of the total redispatch 
cost impact based on the then-current Load Ratio Shares or as otherwise 
agreed.
10.4  Load Curtailments
    To the extent that a transmission constraint on the Bonneville 
transmission system cannot be relieved through the implementation of 
least-cost redispatch procedures and Bonneville determines that it is 
necessary for Bonneville and the Customer to curtail load, the parties 
shall curtail such load as discussed below.
10.5  Curtailment Procedures
    Prior to the Effective Date, and as a precondition to the 
commencement of service hereunder, Bonneville and the Customer shall 
discuss emergency programs for the curtailment of loads with the 
objective of relieving loadings on the Network Transmission System. The 
parties shall implement such agreed programs during any period when 
Bonneville determines that a transmission capacity constraint exists 
and such curtailment of loads is necessary to alleviate such 
constraint.
10.6  Curtailment Allocations
    To the extent practicable and consistent with Good Utility 
Practice, any curtailment shall be shared by Bonneville and its 
Customers. Bonneville shall not direct a Customer to curtail load to an 
extent greater than Bonneville would curtail Bonneville's Native Load 
Customers under similar circumstances. A Customer's failure to 
implement such emergency load curtailment programs may be deemed by the 
Bonneville to be a default under the service agreements that apply this 
Tariff.

11. Rates and Charges

    The Customer shall pay for services provided under this Tariff as 
provided in rates determined in a formal Bonneville rate hearing 
pursuant to section 7(i) of the Northwest Power Act.

12. Billing and Payment

    Billing and payment provisions identified in Bonneville's General 
Rate Schedule Provisions or successor shall be applicable.

13. Booking of Costs Attributable to Bonneville

    Bonneville and the Customer shall keep such records as may be 
needed to afford a clear history of all transactions under this Tariff. 
The originals of all such records shall be retained for a minimum of 2 
years plus the current year (or such longer period as may be required 
by any regulatory commission having jurisdiction, and copies shall be 
delivered to the other party on request.

14. Indemnification and Liability

14.1  Western Interconnected Systems Agreement
    If a Customer is a party to the Western Interconnected Systems 
Agreement Limiting Liability, such agreement shall continue in full 
force and effect as between the parties to the extent that such 
provisions may apply to the transactions contemplated by this Tariff.
14.2  No Western Interconnected Systems Agreement
    If a Customer is not a party to the Western Interconnected Systems 
Agreement Limiting Liability, and there is no other agreement between 
Bonneville and the Customer governing liability and indemnification 
between them, then additional provisions for the protection of electric 
generation and transmission facilities liability and indemnification 
may be required. Such additional provisions shall be set forth in the 
Service Agreement.
14.3  Uncontrollable Forces
    Bonneville shall not be liable for any claim of damage attributable 
to any interruption or reduction of service due to any uncontrollable 
force.

15. Regulatory Filings

    Nothing contained in this Tariff or any Service Agreement shall be 
construed as affecting in any way the right of Bonneville to 
unilaterally make application to the Commission for a change in rates 
or charges.
    Nothing contained in this Tariff or any associated Service 
Agreement shall be construed as affecting in any way the ability of any 
Customer receiving Network Integration Service under the Tariff to 
exercise its rights under the FPA or any successor statute and pursuant 
to the Commission's rules and regulations promulgated thereunder.

16. Operating Arrangements
16.1  Operation of the Customer Control Area
    A Customer shall plan, construct, operate, and maintain the 
Customer Control Area in accordance with Good Utility Practice, which 
shall include, but not be limited to, all applicable NERC and WSCC 
guidelines, or become part of Bonneville's Control Area or the Control 
Area of another utility whose Control Area meets WSCC and NERC 
guidelines.
16.2  Network Operating Agreement
    The terms and conditions under which the Customer shall operate the 
Customer Control Area and the technical and operational matters 
associated with the implementation of this Tariff shall be specified in 
a separate Network Operating Agreement. The Network Operating Agreement 
shall provide for the Parties to: (i) operate and maintain equipment 
necessary for incorporating the Customer Control Area within the 
Bonneville transmission system (including, but not limited to, remote 
terminal units, metering, communication equipment, and relaying 
equipment); (ii) transfer data between control centers (including, but 
not limited to, heat rates and operational characteristics of Network 
Resources, generation schedules for units outside Bonneville's 
transmission system, interchange schedules, unit outputs for dispatches 
required under section 10, voltage schedules, loss penalty factors, and 
other real-time data; (iii) design and implement 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 this Tariff.

17. Network Operating Committee

    If needed, a Network Operating Committee (Committee) shall be 
established to coordinate operating criteria for the Parties' 
respective responsibilities under this Tariff including: (i) standards 
for the design, operation, and maintenance of the facilities necessary 
to integrate Customer Electric Systems with Bonneville's Transmission 
System (including, but not limited to, remote terminal units, metering, 
communications equipment, and relaying equipment); (ii) information 
transfers between control centers (including, but not limited to, 
operational characteristics of Network Resources, generation schedules 
for units outside Bonneville's Transmission System, interchange 
schedules, unit outputs for dispatch, voltage schedules, loss penalty 
factors, and other real-time data); (iii) Software programs required 
for data links and constraint dispatching; (iv) information required 
[[Page 12924]] for long-term planning; (v) load curtailment procedures 
in the event of transmission constraints or system emergencies; (vi) 
least-cost redispatch procedures; and (vii) other technical and 
operational considerations required for implementation of this Tariff. 
Each Customer and Bonneville shall have at least one representative on 
the Committee. The Committee may establish such subcommittees as it 
deems necessary to carry out its functions. The Committee shall meet 
from time to time as need requires, but no less than once each calendar 
year, unless other arrangements are mutually agreed upon.

18. Procedures to Resolve Transmission Complaints

    Any complaint arising concerning implementation of this Tariff may 
be resolved, at the Customer's discretion, by either:
    (a) A voluntary dispute resolution process, which may include 
mediation or arbitration or both, pursuant to the terms of a regional 
transmission association governing agreement, or such other dispute 
resolution rules as may be agreed to by Bonneville and the Customer; or
    (b) A transmission complaint filed with the Commission.

19. Creditworthiness

    For the purpose of determining the ability of the Customer to meet 
its obligations related to service hereunder, Bonneville may require 
reasonable credit review procedures which may include, but shall not be 
limited to, verification that the Customer is not operating under any 
State or Federal bankruptcy laws, is not subject to the uncertainty of 
pending liquidation or regulatory proceedings in State or Federal 
courts, and no significant collection lawsuits or judgments are 
outstanding which would seriously reflect upon the Customer's ability, 
in Bonneville's determination, to remain solvent. This determination 
shall be made in accordance with standard commercial practices. In 
addition, Bonneville may require the 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 this Tariff or an alternative 
form of security proposed by the Customer and acceptable to Bonneville 
that protects Bonneville against the risk of nonpayment. Any disputes 
over the terms of such security arrangements shall be subject to the 
arbitration provisions of this Tariff.

Proposed Bonneville Power Administration Point-to-Point (PTP) Firm 
Network Transmission Service Tariff

Table of Contents

1. Definitions
    1.1  Applicant
    1.2  Application
    1.3  Commission
    1.4  Control Area
    1.5  Customer
    1.6  Delivering Party
    1.7  Direct Assignment Facilities
    1.8  Effective Date
    1.9  Eligible Customer
    1.10  Good Utility Practice
    1.11  Incremental Cost
    1.12  Native Load Customers
    1.13  Network PTP Transmission Facilities
    1.14  Network PTP Transmission Service
    1.15  Network Upgrade
    1.16  Opportunity Costs
    1.17  Point(s) of Delivery
    1.18  Point(s) of Interconnection
    1.19  Receiving Party
    1.20  Reservation Charge
    1.21  Service Agreement
    1.22  Study Agreement
    1.23  System Impact Study
    1.24  Transmission Demand
2. Character and Availability of Service
    2.1  Nature of Service
    2.2  Term of Service
    2.3  Service Agreement Requirements
    2.4  Control Area Requirements
    2.5  Ancillary Services
3. Interconnection and Interchange
    3.1  Designation of Transmission Demand, Point(s) of 
Interconnection, and Point(s) of Delivery
    3.2  Bonneville Responsibility
    3.3  Metering
    3.4  Third Party Arrangements
4. Rates
    4.1  Transmission Charge
    4.2  Dual Transmission Charge
    4.3  Direct Assignment Facilities
    4.4  Termination Charge
    4.5  Reservation Charge
    4.6  Transmission Losses
    4.7  Reactive Charge
    4.8  Control Area Services Charge
    4.9  Revision to Rates, Charges, and Loss Factors
    4.10  Commencement of Service
5. Initiating Service
    5.1  Conditions Precedent for Receiving Service
    5.2  Application Procedures
    5.3  Notice of Deficient Application
    5.4  Identity of Ultimate Consumer
    5.5  Mutually Exclusive Applications for Same Service
    5.6  Applications Filed By Bonneville
6. Priority of Requests
7. Capacity Availability and Expansion Obligations
    7.1  Determination of Capacity Availability
    7.2  Conditions on Capacity Availability
    7.3  Partial Capacity Availability
    7.4  Withdrawal of Application or Failure to Execute Service 
Agreement
    7.5  Responsibility of Parties for Network PTP Transmission 
Facilities Modification
8. Subsequent Requirements Where no New Facilities Are Needed
    8.1  Notification of Applicant
    8.2  Applicant Responsibilities
    8.3  Extension of Service Date
9. Subsequent Requirements When New Facilities Are Needed
    9.1  Application Notification
    9.2  System Impact Study
    9.3  Applicant Responsibility and Remedies
    9.4  Due Diligence in Completion of Facility Modifications
    9.5  Coordination of Third Party System Additions
10. Electronic Bulletin Board
11. Scheduling
    11.1  General Conditions
    11.2  Customer Responsibility for Third Party Arrangements
    11.3  Flexible Point(s) of Interconnection and Delivery
    11.4  Due Diligence
12. Priority of Service and Interruptions
    12.1  Service Priority
    12.2  Bonneville Responsibilities
    12.3  Interruption of Service
13. Service Agreements
    13.1  Requirement for A Signed Service Agreement
    13.2  Modification or Amendment of The Service Agreement
    13.3  Commencement of Service in Absence of Signed Service 
Agreement
    13.4  Customer Obligations in Absence of Signed Service 
Agreement
    13.5  Obligations on Acceptance of Service
14. Billing
15. Records
    15.1  Recordkeeping Obligations
    15.2  Customer's Right to Examine Records
16. Liability and Indemnification
    16.1  Western Interconnected Systems Agreement
    16.2  No Western Interconnected Systems Agreement
17. Sale or Assignment of Network Transmission Service
    18.1  Right to Assign or Transfer
    18.2  Liability for Performance
18. Creditworthiness
19. Procedures to Resolve Network Transmission Complaints
20. Regulation

Bonneville Power Administration Point-to-Point (PTP) Firm Network 
Transmission Service Tariff

    The Bonneville Power Administration (Bonneville) will provide 
Point-to-Point (PTP) Firm Network Transmission Service to Eligible 
Customers pursuant to the terms and conditions of this Tariff.

1. Definitions

1.1  Applicant
    An Eligible Customer who submits a completed Application. 
[[Page 12925]] 
1.2  Application
    A written request by an Eligible Customer for PTP Firm Network 
Transmission Service submitted to Bonneville which satisfies the 
provisions of this Tariff, including provisions of section 5.2.
1.3  Commission
    The Federal Energy Regulatory Commission or its successor.
1.4  Control Area
    The set of generating units, electrical loads, and transmission 
facilities managed and overseen by a utility that is responsible for 
matching generation with such loads on an instantaneous basis.
1.5  Customer
    An Eligible Customer that has executed a Service Agreement for 
Network PTP Transmission Service pursuant to this Tariff or is 
receiving service under a proposed Service Agreement.
1.6  Delivering Party
    The entity supplying the electric energy to be transmitted over 
Bonneville's Network PTP Transmission System Facilities.
1.7  Direct Assignment Facilities
    Transmission facilities which are not an integral part of, and do 
not support, Bonneville's Network PTP Transmission System Facilities 
and that are constructed by Bonneville to satisfy an Application under 
this Tariff, and whose costs Bonneville may recover directly from the 
Customer as provided in the PTP Firm Network Transmission rate 
schedules (PT-95), or its successor.
1.8  Effective Date
    The date upon which Bonneville and an Eligible Customer execute a 
Service Agreement in accordance with the terms and conditions of this 
Tariff.
1.9  Eligible Customer
    A private or public corporation, governmental agency or authority, 
joint action agency, municipality, rural electric membership 
corporation or cooperative, person, or any lawful association of the 
foregoing, which engages in the generation, transmission, or 
distribution of electric energy at wholesale or retail and which will 
rely on Bonneville's Network PTP Transmission System Facilities to 
transmit power from a control area or resource to another control area 
for the purpose of satisfying the commercial transmission needs of the 
customer. Bonneville's direct service industrial customers on the 
effective date of this Tariff shall be considered Eligible Customers. 
Other than Bonneville's direct service industrial customers, and 
Eligible Customer shall not include any entity for which the Commission 
is prohibited under Sections 212 (g) and (h) of the Federal Power Act 
(FPA) from ordering the provision of transmission service. A power 
marketing entity (marketer) will be considered to be an Eligible 
Customer only to the extent that it requests service to deliver 
capacity or energy that will be purchased by an Eligible Customer.
1.10  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 is made, could have been expected to produce the 
desired result at the lowest 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 a range of acceptable 
practices, methods, or acts.
1.11  Incremental Cost
    The increase in Network PTP Transmission System Facilities revenue 
requirements incurred by Bonneville in providing the Customer's share 
of Network Upgrades which are required to provide Network Transmission 
Service as determined in a separate ratemaking process pursuant to 
Section 7(i) of the Northwest Power Act (16 U.S.C. Sec. 839e(i)).
1.12  Native Load Customers
    Those wholesale and direct service industrial power sale customers, 
other than Network Integration Service Customers, on whose behalf 
Bonneville, by statute, or contract, has undertaken an obligation to 
plan, construct, and operate its electric system to provide reliable 
electric service.
1.13  Network PTP Transmission System Facilities
    The Integrated Network segment of the Federal Columbia River 
Transmission System operated by Bonneville.
1.14  Network PTP Transmission Service
    Firm transmission service provided pursuant to this Tariff and an 
executed Service Agreement at 60 hertz, alternating current, three 
phase, over the Network PTP Transmission System Facilities.
1.15  Network Upgrade
    Upgrades to transmission-facilities that are integrated with and 
support the Network PTP Transmission System Facilities and are 
constructed by Bonneville to satisfy, at least in part, an Application.
1.16  Opportunity Costs
    Net loss of revenue or the net increase in generation cost caused 
by displacing one transaction with another when the transmission system 
is so constrained that both transactions cannot be handled at the same 
time. Opportunity costs do not include any loss of revenue resulting 
from competition, or foregone revenues from purchase and resale 
transactions to serve other than Native Load Customers or Network Load. 
or foregone revenues from purchase and resale transactions.
1.17  Point(s) of Delivery
    Point(s) on Bonneville's Network PTP Transmission Facilities where 
Bonneville is interconnected with the Receiving Party or the Receiving 
Party's authorized agent and where Bonneville can deliver power 
transmitted pursuant to a Service Agreement.
1.18  Point(s) of Interconnection
    Point(s) on Bonneville's Network PTP Transmission System Facilities 
where Bonneville is interconnected with the Delivering Party or the 
Delivering Party's authorized agent and where Bonneville can receive 
power transmitted pursuant to a Service Agreement.
1.19  Receiving Party
    The entity receiving the electric energy to be transmitted over 
Bonneville's Network PTP Transmission System Facilities.
1.20  Reservation Charge
    The charge the Customer must pay to reserve capacity for future use 
as described in the Point-to-Point (PT-95) Transmission Rate or its 
successor in Appendix A.
1.21  Service Agreement
    The initial agreement and any supplements or amendments thereto 
entered into by the Customer and Bonneville in order to initiate 
service under this Tariff.
1.22  Study Agreement
    An agreement under which Bonneville would agree to conduct a 
[[Page 12926]] System Impact Study, and the Customer would agrees to 
compensate Bonneville in advance for the cost of conducting the System 
Impact Study.
1.23  System Impact Study
    An assessment by Bonneville to determine whether sufficient 
transmission capacity exists to provide the requested transmission 
service initially and for the term of the request. The assessment study 
results shall include the cost, environmental review, and scheduled 
completion date for such modifications, which may be determined to be 
required in order to provide a requested Network PTP Transmission 
Service.
1.24  Transmission Demand
    The maximum hourly amount of electric power that Bonneville agrees 
to transmit for the Customer over Bonneville's Network PTP Transmission 
System Facilities between the Point(s) of Interconnection and the 
Point(s) of Delivery. Transmission Demand shall be expressed in terms 
of whole megawatts on a 60-minute interval (commencing on the clock-
hour) basis.

2. Character and Availability of Service

2.1  Nature of Service
    PTP Firm Network Transmission Service is a service that permits 
Eligible Customers to serve Customer load or transactions with third 
parties. The service provides firm transmission capacity to Eligible 
Customers from one control area to another through Points of 
Interconnection and Points of Delivery. This service also permits 
nonfirm wheeling through ``Secondary'' Points of Interconnection and 
Delivery.
2.2  Term of Service
    PTP Firm Network Transmission Service is available for a minimum of 
1 month.
2.3  Service Agreement Requirements
    A Service Agreement must be executed prior to the commencement of 
service under this Tariff except as provided in section 13.4.
2.4  Control Area Requirements
    As a condition to obtaining Network PTP Transmission Service, the 
Customer shall: (i) operate as a Control Area under applicable 
guidelines of the North American Electric Reliability Council (NERC), 
the Western Systems Coordinating Council (WSCC) the Western Systems 
Coordinating Council (WSCC), and the Northwest Power Pool (NWPP); or 
(ii) satisfy its responsibility to be operated as a Control Area by 
contract with Bonneville pursuant to section 2.5; or (iii) by contract 
with another entity which Bonneville accepts as sufficient to satisfy 
NERC, WSCC, WSCC, and NWPP requirements. Bonneville shall not 
unreasonably refuse to accept contractual arrangements with another 
entity for such service.
2.5  Ancillary Services
    This Tariff constitutes an offer to provide only Network PTP 
Transmission Service. Bonneville commits either to provide the Customer 
with services necessary for it to take Network PTP Transmission Service 
under this Tariff or to cooperate with the Customer so that the 
Customer can utilize its own resources or the resources of third 
parties to provide such services. Such services if provided by 
Bonneville are offered on a not unduly discriminatory basis, subject to 
resource, engineering, and reliability limitations.

3. Interconnection and Interchange

3.1  Designation of Transmission Demand, Point(s) of Interconnection, 
and Point(s) of Delivery
    The Transmission Demand, Point(s) of Interconnection, and Point(s) 
of Delivery shall be as set forth in the Service Agreement. The Points 
of Interconnection and Delivery so designated in the Service Agreement 
are the ``Primary'' Points of Interconnection and Delivery. The total 
Transmission Demand shall be equal to the sum of the Transmission 
Demands at all Points of Interconnection which shall equal the sum of 
the Transmission Demands at all Points of Delivery.
3.2  Bonneville Responsibility
    Bonneville shall deliver the capacity and energy required from 
Point(s) of Interconnection to Point(s) of Delivery as pursuant to the 
Service Agreement up to the Transmission Demand.
3.3  Metering
    Electric capacity and energy transmitted under this Tariff shall be 
measured as appropriate by metering equipment provided by Bonneville 
and the Customer at such points and voltages as set forth in the 
Service Agreement.
3.4  Third Party Arrangements
    The Customer need not be directly interconnected with Bonneville, 
but shall make any and all necessary arrangements for the delivery of 
power to the Point(s) of Interconnection and receipt from the Point(s) 
of Delivery, and Bonneville shall have no responsibility for such 
arrangements. The Customer shall furnish Bonneville with such necessary 
and appropriate information with respect to such arrangements as shall 
permit Bonneville to carry out its responsibilities under this Tariff. 
The Customer shall be responsible for resolution of operating problems 
and for making and arranging any necessary engineering, permitting, 
construction, and regulatory approval of transmission or distribution 
facilities on third party electric systems related to any transactions 
provided under this Tariff and for the costs associated with resolving 
those problems.

4. Rates

4.1  Transmission Charge
    Payment hereunder shall be calculated pursuant to the rates and 
formulae in Appendix A, the PTP Firm Network Transmission rate (PT-95) 
or its successor.
4.2  Dual Transmission Charge
    Where the installation of Network Upgrades does not fully eliminate 
a constraint, the Transmission Demand Charge shall be treated as two 
transactions for payment purposes, with the portion of the Transmission 
Charge for which the construction of Network Upgrades will eliminate 
the constraint priced in accordance with section IV.D. of PT-95 or its 
successor in Appendix A, and the residual portion of the Transmission 
Charge for which a constraint is not eliminated by the Network Upgrades 
priced in accordance with section II of PT-95 or its successor in 
Appendix A. The Transmission Charge and the Dual Transmission Charge 
are mutually exclusive charges. Bonneville may charge one or the other, 
but not both.
4.3  Direct Assignment Facilities
    In addition to the payments made pursuant to sections 4.1 or 4.2 
above, payment shall be made to Bonneville for the cost incurred by 
Bonneville for providing any Direct Assignment Facilities. The 
calculation of the Customer's monthly payment for Direct Assignment 
Facilities shall be in accordance with PT-95 or its successor in 
Appendix A.
4.4  Termination Charge
    The Customer shall pay an appropriate charge to cover the costs of 
facilities added for the benefit of the customer under this Tariff the 
Service Agreement if the Customer terminates Network PTP Transmission 
Service prior to the termination date of the Service Agreement. The 
Customer shall receive a credit for any mitigation provided by the 
facilities to the Network [[Page 12927]] PTP Transmission System 
revenues subsequently received by Bonneville for use of such 
facilities.
4.5  Reservation Charge
    The Customer may pay a Reservation Charge pursuant to PT-95 or its 
successor in Appendix A, to preserve its priority for service with 
respect to other Applicants and Customers.
4.6  Transmission Losses
    Transmission losses shall be determined on the basis of average 
estimated system losses. The Customer shall compensate Bonneville for 
losses by either providing additional energy to compensate for losses 
associated with the scheduled capacity or by buying losses from 
Bonneville in accordance with the Firm Power Products and Services 
(FPS-95) rate schedule or its successor in Appendix A.
4.7  Reactive Charge
    The Customer shall pay for reactive power necessary to provide 
transmission services under this Tariff pursuant to the PTP Firm 
Transmission rate (PT-95) or its successor.
4.8  Control Area Services Charge
    If a Customer elects to purchase Control Area services from 
Bonneville pursuant to the Ancillary Services in section 2.5, the 
Customer shall pay for such services pursuant to the FPS-95 rate 
schedule or its successor.
4.9  Revision to Rates, Charges, and Loss Factors
    Bonneville may periodically revise rates, charges, and transmission 
loss factors and apply such revisions to its Service Agreements.
4.10  Commencement of Service
    Within 30 days of the receipt of notice from Bonneville that 
service can commence, the Customer shall commence paying the 
Transmission Charge or Dual Transmission Charge and any other rates or 
charges required by section 4 hereof. Failure to do so will result in 
forfeiture by the Customer of all deposits and security and require 
immediate payment of any cost incurred by Bonneville to furnish the 
requested Network PTP Transmission Service; and the Customer's 
Application will no longer be considered valid or pending.

5. Initiating Service

5.1  Conditions Precedent for Receiving Service
    Subject to the terms and conditions of this Tariff, Bonneville 
shall provide Network PTP Transmission Service over the Network PTP 
Transmission System Facilities to any Eligible Customer, provided that: 
(i) the Eligible Customer has completed an Application for Network PTP 
Transmission Service as provided below in section 5.2; (ii) the 
Eligible Customer and Bonneville have completed the technical 
arrangements set forth in section 9.4 below; and (iii) the Eligible 
Customer has executed a Service Agreement.
5.2  Application Procedures
    For transactions of 1 month up to 1 year an Eligible Customer 
requesting service under this Tariff must submit a completed 
application to: Bonneville Power Administration, Attention: Manager, 
Short-Term Contracts; P.O. Box 491; Vancouver, Washington, 98666-0491.
    For transactions of 1 year or more an Eligible Customer requesting 
Service under this Tariff must submit a completed Application to: 
Bonneville Power Administration, Attention: Manager, Transmission 
Business; Bonneville Power Administration; P.O. Box 3621; Portland, 
Oregon, 97208-3621. In order for an Application hereunder to be 
considered a ``good faith request'' for transmission service in 
accordance with the provisions of Section 213 of the FPA, the 
Application must contain the following information:
    (a) The identity, address, and telephone number of the Applicant 
requesting a Network PTP Transmission Service;
    (b) A statement that the entity requesting Network PTP Transmission 
Service hereunder is, or will be upon commencement of service, an 
Eligible Customer under this Tariff.
    (c) The name and title of the contact person for the Applicant.
    (d) The identity of the Delivering Party and the identity of the 
Receiving Party;
    (e) The Primary Point(s) of Interconnection and the Primary 
Point(s) of Delivery;
    (f) The proposed dates for initiating and terminating PTP 
Transmission Service hereunder;
    (g) The Transmission Demand, expected load profile and load 
characteristics;
    (h) The identity of the initial source of the power to be 
transmitted pursuant to the Application; and
    (i) The identity of the Control Area in which the ultimate consumer 
of power is located.
    Bonneville will notify the Applicant of receipt of the Application 
within 10 days of receipt. Bonneville reserves the right to ask for 
additional information necessary to determine the availability of 
transmission capacity and reliability impacts.
5.3  Notice of Deficient Application
    If an Application fails to meet the requirements of this Tariff, 
Bonneville shall notify the party requesting service within 10 days of 
receipt of the Application of the reasons for such failure. Bonneville 
will attempt to remedy minor deficiencies in the Application through 
informal communications with the Eligible Customer. If such efforts are 
unsuccessful, Bonneville shall return the Application. Upon receipt of 
a new or revised Application that fully complies with the requirements 
of this Tariff, the Eligible Customer shall be assigned a new priority 
consistent with the date of the new or revised Application.
5.4  Identity of Ultimate Consumer
    The Applicant may be required to identify the ultimate consumer of 
the power to be transmitted if such information is necessary for 
Bonneville to determine, pursuant to section 7 hereof, whether adequate 
transmission capacity will be available on its Network PTP Transmission 
System Facilities to provide the service initially and for the full 
term of the transaction requested by the Applicant. If the Applicant 
objects to a request by Bonneville under sections 5.3 or 5.4 that it 
provide the name of the ultimate consumer, then Bonneville shall have 
the right to seek an order from the Commission allowing Bonneville to 
require the Applicant to provide Bonneville with the identity of the 
ultimate consumer and the parties cannot otherwise resolve their 
differences, the Applicant may proceed under the provisions of section 
19.
5.5  Mutually Exclusive Applications for Same Service
    In order to determine whether Applications for Network PTP 
Transmission Service hereunder are duplicative or mutually exclusive of 
Applications filed by other parties, Bonneville may request further 
information, including, by way of illustration, a statement as to 
whether the Application is being made in response to a competitive 
solicitation. If certain requests for Network PTP Transmission Service 
give Bonneville a reasonable basis to believe that such requests are 
mutually exclusive, Bonneville may ask the Applicant making such a 
request to identify the ultimate purchaser of power and, if appropriate 
under the circumstances, Bonneville may contact the ultimate 
[[Page 12928]] purchaser to determine whether the Applications are 
mutually exclusive. Should Bonneville confirm that particular 
Applications hereunder are mutually exclusive (e.g., the ultimate 
purchaser will buy from one but not all of the Eligible Customers who 
have submitted Applications), Bonneville reserves the right to process 
all such Applications as though they were a single Application.
5.6  Applications Filed By Bonneville
    Applications filed by Bonneville pursuant to section 6.2 hereof. 
Bonneville will file applications for firm service to serve its own 
firm commercial transactions which do not constitute service to Native 
Load Customers. Such applications will be treated in the same manner as 
any Application under this Tariff and assigned a priority for 
determining transmission capacity availability according to the 
provisions set forth in section 7.1.

6. Priority of Requests

    All requests for Network PTP Transmission Service and all other 
requests for firm transmission service, other than service to Native 
Load Customers and to Network Load of Network Integration Service 
Customers, shall be evaluated. Priority shall be determined on a first-
come, first-served basis based on the date when Bonneville receives an 
executed Service Agreement, after meeting the obligations listed in 
section 8.2.
7. Capacity Availability and Expansion Obligations

7.1  Determination of Capacity Availability
    Upon receiving a complying Application hereunder, Bonneville will 
determine the requirements, if any, to interconnect the Applicant with 
Bonneville's electric system and whether adequate capacity will be 
available on Bonneville's Network PTP Transmission System Facilities to 
provide the service initially and for the full term of the transaction 
requested by the Applicant. Such determination will be made as soon as 
possible, not to exceed 60 days from the date of interconnection, 
unless the number or complexity of Applications reasonably requires 
additional time. If additional time is required, Bonneville shall 
notify the Applicant on a timely basis and provide an estimate of the 
time needed to reach a final determination. If Bonneville determines 
that adequate capacity will be available on its Network PTP 
Transmission System Facilities to provide service for the highest 
priority Application, and subject to the requirements of the National 
Environmental Policy Act or any other applicable environmental laws, 
Bonneville will notify the Applicant and tender a Service Agreement 
pursuant to section 8.
7.2  Conditions on Capacity Availability
    In determining whether adequate capacity will be available on its 
Network PTP Transmission System Facilities for the requested service 
both initially and for the full term of the requested transaction, 
Bonneville shall determine if capacity is available in excess of that 
required to accommodate: (1) the existing and forecasted loads of its 
Native Load Customers; (2) Bonneville's other customers to whom 
Bonneville has preexisting contractual obligations commitments for firm 
wholesale purchases, exchanges, deliveries, and sales; and (3) existing 
contractual, statutory, and regulatory commitments for firm 
transmission service; any existing contractual commitments providing 
for hydroelectric system coordination or forced outage reserves, as 
well as (4) transmission capacity reserved for reliability, regulation, 
and inadvertent flows based on Bonneville's historical use or planned 
use for such purposes; and (5) delivery of Federal and Network 
Integration Service Customers' hydroelectric power in times of actual 
or threatened spill. In making such determination, Bonneville shall use 
the WSCC's and Bonneville's ``Reliability Criteria for Network PTP 
Transmission System Planning.'' Bonneville shall not take into 
consideration any other pending Application of lower priority for 
Network PTP Transmission Service. Network PTP Transmission Service 
shall also be subject to Good Utility Practice in order to take into 
account the physical characteristics and constraints on Bonneville's 
Network PTP Transmission System Facilities.
7.3  Partial Capacity Availability
    If Bonneville determines to provide the requested service but that 
it will not have adequate capacity available on its Network PTP 
Transmission System Facilities to satisfy the full amount of the 
requested service, Bonneville will allow the Applicant to either: (a) 
sign a Service Agreement pursuant to section 8 hereof for the amount of 
Network PTP Transmission Service that can be provided immediately, and 
receive for the remainder of the requested service pursuant to section 
9 hereof after the necessary facility upgrades and modifications have 
been installed; (b) sign a Service Agreement pursuant to section 8 
hereof for the amount of Network PTP Transmission Service that can be 
provided immediately and withdraw the Application for the remainder of 
the service; (c) sign a Service Agreement to receive all the requested 
Network PTP Transmission Service pursuant to section 9 hereof after the 
necessary facility modifications are completed; or (d) withdraw the 
Application for Network PTP Transmission Service.
7.4  Withdrawal of Application or Failure to Execute Service Agreement
    Should an Applicant withdraw all or part of its Application, or 
should an Applicant fail to execute a Service Agreement within the 
required time period provided in section 8.2, except as otherwise 
provided in section 13.4, Bonneville will reevaluate whether capacity 
is available on the Network PTP Transmission System Facilities which 
would satisfy any other Applications which could utilize such Network 
PTP Transmission System capacity and which had a lower priority than 
the withdrawn Application. Bonneville shall reevaluate such lower 
priority Applications in the order of their assigned priority. Should 
Bonneville determine that additional Network PTP Transmission System 
Facilities capacity is available for any Customer submitting a lower 
priority Application, Bonneville shall allow such Customer an option, 
to be exercised within 10 days to execute or to modify its Service 
Agreement shall offer such Customer a Service Agreement, pursuant to 
the provisions of this Tariff, to reflect the availability of such 
additional Network PTP Transmission System capacity.
7.5  Responsibility of Parties for Network PTP Transmission Facilities 
Modification
    Where a determination is made by Bonneville that an Application for 
Network PTP Transmission Service pursuant to this Tariff will require 
modifications to the Network PTP Transmission System Facilities, or 
when an Applicant requests specific upgrades, Bonneville commits to use 
due diligence consistent with its statutory environmental obligations 
to make such modifications to the Network PTP Transmission Facilities 
within a reasonable time; provided, however, that the Applicant agrees 
to compensate Bonneville for the costs, determined pursuant to section 
4 of all modifications to the Network PTP Transmission System 
Facilities reasonably required to provide such [[Page 12929]] service. 
Bonneville will not increase or upgrade the capacity of its existing or 
planned transmission facilities in order to provide service under this 
Tariff if doing so would unduly impair system reliability or otherwise 
jeopardize service to its Native Load Customers and or other Customers 
to whom Bonneville has a preexisting contractual obligation. Unless 
otherwise agreed to by Bonneville and the Customer, Bonneville will own 
any additional electrical facilities or upgrades constructed pursuant 
to this Tariff. The Customer shall cooperate with Bonneville in the 
construction of any required facilities and shall take all reasonable 
steps to assist Bonneville in obtaining any necessary permits, 
authorizations, and rights-of-way.

8. Subsequent Requirements Where No New Facilities Are Needed

8.1  Notification of Applicant
    When, pursuant to section 8 hereof, Bonneville determines that 
adequate capacity and facilities will be available on its electric 
system to provide the requested service initially and for the full term 
of the transaction requested, Bonneville shall so notify the Applicant 
in writing and tender a Service Agreement as soon as possible, not to 
exceed 30 days thereafter, to the Applicant.
8.2  Applicant Responsibilities
    Within 30 days, unless otherwise agreed, after receipt of such 
Service Agreement, the Applicant must either: (a) execute the Service 
Agreement; (b) withdraw its Application; or (c) inform Bonneville that 
the Service Agreement is unacceptable as tendered and request that 
Network PTP Transmission Service commence pursuant to section 134. 
Failure to take any one of the foregoing actions within such 30 days, 
unless otherwise agreed, will be deemed to be a withdrawal of the 
Application. Nothing herein limits the right of the Applicant to file 
another Application for Network PTP Transmission Service immediately 
upon such withdrawal.
8.3  Extension of Service Date
    A Customer that has entered into a contract with an Eligible 
Utility for the sale, purchase, or exchange of capacity and/or energy 
or provides Bonneville with sufficient evidence that such a sale is 
likely to be consummated, can reserve capacity by paying a Reservation 
Charge specified in section W of the Adjustments, Charges, and Special 
Rate Provisions.

9. Subsequent Requirements When New Facilities Are Needed

9.1  Applicant Notification
    When, pursuant to section 9 hereof, Bonneville determines that an 
Application will require initially, or during the term of the 
transaction, Network Upgrades and/or Direct Assignment Facilities; in 
order to either provide the required Network PTP Transmission Service 
or to interconnect the Applicant to Bonneville's electric system, at 
the earliest possible date, not to exceed 60 days of receipt of the 
Application, Bonneville shall inform the Customer, in writing, of the 
requirement to perform a System Impact Study, and shall tender a Study 
Agreement.
9.2  System Impact Study
    Upon receipt of the executed Study Agreement, Bonneville shall 
commence the System Impact Study. Upon completion of the System Impact 
Study, Bonneville will present the results, including workpapers, to 
the Applicant. If Bonneville determines that construction of such 
facilities is feasible and consistent with its environmental 
obligations, it shall and tender a Service Agreement under which the 
Applicant would agree to receive service upon completion of the 
facility modifications and to fully compensate Bonneville for the 
facility modifications, pursuant to section 4 herein.
9.3  Applicant Responsibility and Remedies
    For the Application to remain valid and pending, within 90 days of 
the receipt of the System Impact Study and the Service Agreement, the 
Applicant must execute the Service Agreement. In order to protect 
Bonneville against the risk of nonpayment by the Applicant for the 
facility modifications, the Applicant and Bonneville shall negotiate 
reasonable security provisions acceptable to both parties. If 
Bonneville and the Applicant are unable to reach agreement on the 
amount and form of the security provisions, then the Applicant may 
proceed under the provisions of section 19.
9.4  Due Diligence in Completion of Facility Modifications
    Upon receipt of the executed Service Agreement and the associated 
security provisions, Bonneville shall use due diligence to complete the 
necessary modifications within a reasonable time. Bonneville shall give 
the Customer 90 days written notice prior to the projected completion 
of the facility modifications. Promptly upon completion of such 
modifications, Bonneville shall notify the Customer in writing that 
service can commence. Service shall commence pursuant to section 4.8.
9.5  Coordination of Third Party System Additions
    Where the need for Network Upgrades or Direct Assignment Facilities 
are identified, and such upgrades require the addition of transmission 
facilities on other system(s), Bonneville shall have the right to 
coordinate construction on its own system with the construction 
required by other(s). Bonneville, after consultation with the Customer 
and representatives of such other system(s), may defer construction of 
new transmission facilities on its own system pending the resolution of 
obstacles to the timely completion of new transmission facilities on 
other system(s) needed to provide the requested service.

10. Electronic Bulletin Board

    Bonneville shall cooperate with Customers and utilities who are 
members of the WSCC to develop an electronic bulletin board that is 
compatible with and useful to all WSCC members. The purpose of the 
electronic bulletin board is to make known to users the available 
transmission capacity and any proposals to increase that capacity.

11. Scheduling

11.1  General Conditions
    All capacity and energy to be transmitted by Bonneville hereunder 
shall be scheduled in advance pursuant to the terms of the Service 
Agreement and will reflect the procedures used by Bonneville in 
scheduling its own transactions. Bonneville will make schedule changes 
on short notice if reasonably practicable. The Customer shall provide 
written notification to Bonneville identifying all systems involved in 
the transaction and authorizing such systems to schedule all capacity 
and energy to be transmitted by Bonneville pursuant to the Service 
Agreement on behalf of the Receiving Party at the Point of Delivery or 
the Delivering Party at the Point of Interconnection.
11.2  Customer Responsibility for Third Party Arrangements
    Any arrangements necessary for scheduling power flows on third 
party electric systems, including compensation for any associated 
costs, losses, or parallel flows on such systems, shall be the 
responsibility of the Customer requesting service. [[Page 12930]] 
11.3  Flexibility Point(s) of Interconnection and Delivery
    As an alternative to receiving service from Primary Points of 
Interconnection to Primary Points of Delivery, the Customer may request 
Bonneville to provide nonfirm Network PTP Transmission Service between 
interconnection and delivery points other than those specified in the 
Service Agreement (``Secondary Points of Interconnection and 
Delivery''), in amounts not to exceed its Transmission Demand, without 
incurring any additional charges, executing a new Service Agreement, or 
affecting its priority at Primary Points of Interconnection and 
Delivery. Service provided between Secondary Points of Interconnection 
and Delivery will be nonfirm only, on a capacity available basis and 
will not displace any firm or nonfirm service of higher priority 
previously scheduled by third parties or by Bonneville on behalf of its 
Native Load Customers and other customers to whom Bonneville has a 
preexisting contractual obligation and subject to higher priority 
schedules to: (1) serve Bonneville's Native Load; (2) serve Network 
Integration Service network load; and (3) deliver Federal and Network 
Integration Service hydroelectric power subject to spill or threatened 
spill.
11.4  Due Diligence
    Bonneville and the Customer shall exercise due diligence and 
reasonable care and foresight in arranging for and operating their 
respective sources of supply and other facilities so that scheduled 
amounts of capacity and energy shall be delivered in accordance with 
section 12.1.

12. Priority of Service and Interruptions

12.1  Service Priority
    Unless otherwise specified in the Service Agreement all service 
provided hereunder from Primary Points of Interconnection to Primary 
Points of Delivery shall have priority over nonfirm transmission 
service, including that which Bonneville provides itself and which 
otherwise has not been appropriately reserved by Bonneville in the 
Service Agreement to serve the needs of Native Load Customers or 
Network Integration Service Customers or to avoid spill of Federal or 
Network Integration Service hydroelectric power.
12.2  Bonneville Responsibilities
    Bonneville will use due diligence to furnish the firm Network PTP 
Transmission Service available under this Tariff, but it does not 
guarantee uninterrupted transmission of electric energy or capacity. To 
the extent practicable, Bonneville will provide reasonable advance 
notice to the Customer of any scheduled interruptions, reductions, or 
other impairments of the Network PTP Transmission Service as specified 
in the individual Service Agreement.
12.3  Interruption of Service
    Any interruption of service will not be on an unduly discriminatory 
basis as between Bonneville and similarly situated Customers.

13. Service Agreements

13.1  Requirement for a Signed Service Agreement
    Subject only to the provisions of section 14.43 herein, Bonneville 
is obligated to provide Network PTP Transmission Service under this 
Tariff only to Customers that have signed a Service Agreement with 
Bonneville for the requested service. The Service Agreement shall 
contain a statement of service specifications, including without 
limitation, the amount of Transmission Demand; the term of such 
service; identification of Primary Point(s) of Interconnection, Primary 
Point(s) of Delivery, Delivering Party, Receiving Party; the rates and 
charges for such service, and where applicable, the cost of necessary 
facilities, including Direct Assignment Facilities and an appropriate 
allocation of Network Upgrades.
13.2  Modification or Amendment of the Service Agreement
    Any request to modify Primary Points of Interconnection and/or 
Delivery or to increase the Transmission Demand will be analyzed in the 
same manner as a new Application, except that the Customer will not be 
obligated to pay any additional reservation fee if the additional 
transmission Demand does not exceed the Transmission Demand in the 
existing Service Agreement. While such new request is pending, the 
Customer shall retain its priority for service at the existing Primary 
Points of Interconnection and Delivery. If Demand is not available then 
the request will receive a service priority pursuant to section 8.
13.3  Commencement of Service in Absence of Signed Service Agreement
    If Bonneville and an Applicant cannot agree on the terms of the 
Service Agreement, Bonneville may provide the requested service if 
Demand transmission capacity is available, as soon as reasonably 
practicable after receipt of a valid Application for transmission, 
subject to Good Utility Practice. Such service will be provided under 
terms and conditions deemed appropriate by Bonneville for the requested 
service. Bonneville will provide the requested service under terms and 
conditions ultimately determined by the Commission to be appropriate 
under Sections 211 and 212 of the FPA, within the constraints imposed 
by engineering and reliability limitations.
13.4  Customer Obligations in Absence of Signed Service Agreement
    Notwithstanding any other provision of this Tariff, Bonneville is 
not obligated to provide Network PTP Transmission Service to a Customer 
until such Customer provides Bonneville with a binding written 
commitment to pay for any facility modifications determined by 
Bonneville under section 8 hereof to be reasonably necessary to provide 
the requested services.
13.5  Obligations on Acceptance of Service
    Acceptance of service by the Customer pursuant to a Service 
Agreement filed under this Tariff commits the Customer both to the 
provisions of this Tariff and to the terms of the individual Service 
Agreement.

14. Billing

    Bonneville shall bill in accordance with the billing information in 
the current General Rate Schedule Provisions, Appendix A or successor, 
or as they may from time to time be revised receipt.

15. Records

15.1  Recordkeeping Obligations
    Bonneville and the Customer shall keep such records as may be 
needed to afford a clear history of all transactions under this Tariff 
and associated Service Agreement. The originals of all such records 
shall be retained for a minimum of 2 years plus the current year (or 
such longer period as may be appropriate) and copies shall be delivered 
to the other party on request.
15.2  Customer's Right to Examine Records
    The Customer shall have the right, during normal business hours, to 
examine the accounting and other records for the last 2 calendar years 
relating to its transactions under this Tariff and shall have the right 
to make such audits and copies of records as it shall deem necessary or 
desirable. Such examinations shall be at the Customer's expense. Such 
audit shall be conducted [[Page 12931]] no more frequently than once 
every 2 years.

16. Liability and Indemnification

16.1  Western Interconnected Systems Agreement
    If an Applicant is a party to the Western Interconnected Systems 
Agreement Limiting Liability, such agreement shall continue in full 
force and effect as between the parties to the extent that such 
provisions may apply to the transactions contemplated by this Tariff.
16.2  No Western Interconnected Systems Agreement
    If an Applicant is not a party to the Western Interconnected 
Systems Agreement Limiting Liability, and there is no other agreement 
on file with the Commission governing liability and indemnification 
between Bonneville and the Applicant, then, in such event, additional 
provisions for protection of electric generation facilities or 
transmission facilities and liability and indemnification may be 
required. Such additional provisions shall be set forth in the 
Applicant's Service Agreement.

17. Sale or Assignment of Network PTP Transmission Service

17.1  Right to Sell, Assign or Transfer
    Subject to the approval of Bonneville, a Customer may sell, assign, 
or transfer all, or a portion of, its rights under the Service 
Agreement executed pursuant to this Tariff, but only to an entity that 
qualifies as an Eligible Customer. If the second Customer so purchasing 
or taking an assignment does not request any change in the Primary 
Point(s) of Delivery of or Primary Point(s) of Interconnection, subject 
to section 14.32, or a change in any other material term or condition 
set forth in the original Service Agreement, the second Customer will 
receive the same service as the first Customer. If the second Customer 
requests a change in any material term or condition set forth in the 
original Service Agreement, Bonneville will consent to such change 
subject to the provisions of section 14 herein, but only if to do so 
will not unduly impair the operation and reliability of Bonneville's 
generation, or transmission, or distribution systems, and on the 
condition that the second Customer agrees to compensate the Customer 
Bonneville for any additional costs resulting from such change. The 
Customer that received the assignment shall assume responsibility for 
scheduling. The Customer making the assignment shall continue to have 
responsibility for compliance with the Service Agreement including 
making payment to Bonneville.
17.2  Liability for Performance
    The Customer that received the assignment shall assume 
responsibility for scheduling. The original Customer shall remain 
liable for the performance of all other obligations under the Service 
Agreement including making payment to Bonneville, except as 
specifically agreed to by the parties through an amendment to the 
Service Agreement. Bonneville will amend the Service Agreement only if 
the assignee: (a) meets the creditworthiness criteria of section 19; 
and (b) agrees to compensate Bonneville for Direct Assignment 
Facilities, and allocated Network Upgrades and costs resulting from 
changes in service; and (c) provides security equivalent to that 
provided by the original Customer.

18. Creditworthiness

    For the purpose of determining the ability of the Customer to meet 
its obligations related to service hereunder, Bonneville may require 
reasonable credit review procedures which may include, but shall not be 
limited to, verification that the Customer is not operating under any 
State or Federal bankruptcy laws, is not subject to the uncertainty of 
pending liquidation or regulatory proceedings in State or Federal 
courts, and no significant collection lawsuits or judgments are 
outstanding which would seriously reflect upon the Customer's ability, 
in Bonneville's determination, to remain solvent. In addition, 
Bonneville may require the 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 this Tariff or an alternative form of security 
proposed by the Customer and acceptable to Bonneville that protects 
Bonneville's Native Load Customers against the risk of nonpayment. Any 
disputes over the terms of such security arrangements shall be subject 
to the provisions of the Tariff.

19. Procedures to Resolve Network Transmission Complaints

    Any complaint arising from an Application hereunder may be 
resolved, at the Customer's discretion, by either:
    (a) A voluntary dispute resolution process, which may include 
mediation or arbitration or both, pursuant to the terms of a regional 
transmission association governing agreement which both parties have 
executed, or such other dispute resolution rules as may be agreed to by 
Bonneville and the Customer; and
    (b) A transmission complaint filed with the Commission.

20. Regulation

    Service under this Tariff is subject to all existing or future 
applicable local, State, and Federal laws and to all existing or future 
duly promulgated orders and actions of governmental authorities having 
jurisdiction over the matters contained herein.

Proposed Bonneville Power Administration Energy Transmission Service 
Tariff

Table of Contents

1. Definitions
    1.1  Applicant
    1.2  Application
    1.3  Commission
    1.4  Control Area
    1.5  Customer
    1.6  Delivering Party
    1.7  Eligible Customer
    1.8  Energy Transmission Facilities
    1.9  Native Load Customers
    1.10  Point(s) of Delivery
    1.11  Point(s) of Interconnection
    1.12  Receiving Party
    1.13  Service Agreement
2. Character of Service and Availability
    2.1  Nature of Service
    2.2  Term of Service
    2.3  Priority of Service
    2.4  Commencement of Service
    2.5  Control Area Requirements
    2.6  Ancillary Services
3. Interconnection and Interchange
    3.1  Bonneville Responsibility
    3.2  Metering
    3.3  Third Party Arrangements
4. Rates
    4.1  Transmission Charge
    4.2  Transmission Losses
    4.3  Reactive Charge
    4.4  Revision to Rates, Charges, and Loss Factors
5. Initiating Service
    5.1  Nonfirm Umbrella Service Agreement
    5.2  Short-Term Firm Service Agreement
6. Electronic Bulletin Board
7. Scheduling
    7.1  General Conditions
    7.2  Due Diligence
    7.3  Curtailment
8. Service Agreements
    8.1  Requirement for a Signed Service Agreement
    8.2  Obligations on Acceptance of Service
9. Billing
10. Records
    10.1  Recordkeeping Obligations
    10.2  Customer's Right to Examine Records
11. Liability and Indemnification
    11.1  Western Interconnected Systems Agreement
    11.2  No Western Interconnected Systems Agreement
12. Creditworthiness
13. Procedures to Resolve Transmission Complaints [[Page 12932]] 

Bonneville Power Administration Energy Transmission Service Tariff

    The Bonneville Power Administration (Bonneville) will provide 
short-term firm and nonfirm point-to-point transmission service under 
this Energy Transmission Tariff (ET) to Eligible Customers.

1. Definitions

1.1  Applicant
    An Eligible Customer who submits a completed Application.
1.2  Application
    A request by an Eligible Customer for nonfirm and/or firm Energy 
Transmission Service submitted to Bonneville which satisfies the 
provisions of this Tariff, including provisions of section 5.
1.3  Commission
    The Federal Energy Regulatory Commission or its successor.
1.4  Control Area
    The self-contained set of generating units, electrical loads, and 
transmission facilities managed and overseen by a utility that is 
responsible for matching generation with such loads on an instantaneous 
basis.
1.5  Customer
    An Eligible Customer that has completed an Application for service 
and has executed a Service Agreement for Energy Transmission Service 
pursuant to this Tariff.
1.6  Delivering Party The entity supplying the electric energy to be 
transmitted over Bonneville's Energy Transmission Facilities.
1.7  Eligible Customer
    A private or public corporation, governmental agency or authority, 
joint action agency, municipality, rural electric membership 
corporation or cooperative, person, or any lawful association of the 
foregoing, which engages in the generation, transmission, or 
distribution of electric energy at wholesale or retail. Bonneville's 
direct service industrial customers on the effective date of this 
Tariff shall be considered Eligible Customers. Other than Bonneville's 
direct service industrial customers, an Eligible Customer shall not 
include any entity for which the Commission is prohibited under 
Sections 212(g) and (h) of the Federal Power Act from ordering the 
provision of transmission service. A power marketing entity (marketer) 
will be considered to be an Eligible Customer only to the extent it 
requests service to deliver capacity or energy that will be purchased 
by an Eligible Customer.
1.8  Energy Transmission Facilities
    The Federal Columbia River Transmission System facilities operated 
by Bonneville, excluding the Interties.
1.9  Native Load Customers
    Those wholesale and direct service industrial power sale customers, 
on whose behalf Bonneville, by statute or contract, has undertaken an 
obligation to plan, construct, and operate its electric system to 
provide reliable electric service.
1.10  Point(s) of Delivery
    Point(s) on Bonneville's Energy Transmission Facilities where 
Bonneville is interconnected with the Receiving Party or the Receiving 
Party's authorized agent and where Bonneville can deliver power 
transmitted pursuant to a Service Agreement.
1.11  Point(s) of Interconnection
    Point(s) on Bonneville's Energy Transmission Facilities where 
Bonneville is interconnected with the Delivering Party or the 
Delivering Party's authorized agent and where Bonneville can receive 
power transmitted pursuant to a Service Agreement.
1.12  Receiving Party
    The entity receiving the electric energy to be transmitted over 
Bonneville's Energy Transmission Facilities.
1.13  Service Agreement
    The initial agreement and any supplements or amendments thereto 
entered into by the Customer and Bonneville in order to initiate 
service under this Tariff. For nonfirm Energy Transmission Service, the 
Service Agreement may be in the form of a standard umbrella agreement 
for Energy Transmission Service which provides for maximum flexibility 
in using Point(s) of Delivery and Point(s) of Interconnection, standard 
scheduling provisions and interruption rights, and billing information. 
For short-term firm Energy Transmission Service, the Service Agreement 
may be in the form of a transaction specific agreement for Energy 
Transmission Service which documents the terms and conditions of that 
transaction.

2. Character of Service and Availability

2.1  Nature of Service
    Energy Transmission Service is a control area to control area 
service. The service delivers energy over transmission paths that may 
be nonfirm or short-term firm, consolidated by the Customer into a 
schedule, from one control area to another through Points of 
Interconnection and Points of Delivery. Short-term firm Energy 
Transmission Service shall be provided on a take-or-pay basis, unless 
curtailed by Bonneville.
2.2  Term of Service
    Nonfirm Energy Transmission Service hereunder may only be 
prescheduled. Prescheduling is done in hourly increments up to a 
maximum of 24 hours from 1 working day to the next. Short-term Firm 
Energy Transmission Service may be provided for periods up to 1 month.
2.3  Priority of Service
    Energy Transmission Service shall be provided over transmission 
capacity available after Bonneville meets its obligations to serve: (1) 
its existing and forecasted requirements to serve Native Load 
Customers; (2) its existing contractual commitments for firm wholesale 
purchases, exchanges, and sales; (3) its existing contractual, 
statutory, and regulatory commitments for firm transmission service; 
(4) transmission capacity reserved for reliability, regulation, and 
inadvertent flows based on Bonneville's historic use or planned use for 
such purpose; (5) delivery of Federal and Network Integration 
Customers' hydroelectric power in times of actual or threatened spill.
    Priority to available capacity shall be provided to requests for 
firm service. All requests for nonfirm Energy Transmission Service 
hereunder, all other requests for nonfirm transmission service pursuant 
to Bonneville's other network transmission tariffs and Bonneville's own 
nonfirm network transmission uses, with the exception of Bonneville's 
and Network Integration Customers' economy energy purchases, and sales 
to avoid hydroelectric spill, shall be evaluated on a first-come, 
first-served basis.
2.4  Commencement of Service
    A Service Agreement must be executed prior to the commencement of 
service under this Tariff.
2.5  Control Area Requirements
    As a condition to obtaining Energy Transmission Service, the 
Customer shall: (i) operate as a Control Area under applicable 
guidelines of the North American Electric Reliability Council (NERC), 
the Western Systems Coordinating Council (WSCC), and the 
[[Page 12933]] Northwest Power Pool (NWPP); or (ii) satisfy its 
responsibility to be operated as a Control Area by contract with 
Bonneville pursuant to section 2.6 by contract with another entity 
which Bonneville accepts as sufficient to satisfy NERC, WSCC, and NWPP 
requirements. Bonneville shall not unreasonably refuse to accept 
contractual arrangements with another entity for such services.
2.6  Ancillary Services
    This Tariff constitutes an offer to provide only Energy 
Transmission Service. Bonneville commits either to provide the Customer 
with services necessary for it to take Energy Transmission Service 
under this Tariff; or to cooperate with the Customer so that the 
Customer can utilize its own resources or the resources of third 
parties in order to provide such services. Such services offered by 
Bonneville are offered on a not unduly discriminatory basis, subject to 
resource, engineering, and reliability limitations.

3. Interconnection and Interchange

3.1  Bonneville Responsibility
    Bonneville shall deliver the energy required from Point(s) of 
Interconnection to Point(s) of Delivery pursuant to the Service 
Agreement up to the amount of designated energy.
3.2  Metering
    Electric energy transmitted under this Tariff shall be measured as 
appropriate by metering equipment provided by Bonneville and the 
Customer at such points and voltages as set forth in the Service 
Agreement.
3.3  Third Party Arrangements
    The Customer need not be directly interconnected with Bonneville, 
but shall make any and all necessary arrangements for the delivery of 
power to the Point(s) of Interconnection and receipt from the Point(s) 
of Delivery, and Bonneville shall have no responsibility for such 
arrangements. The Customer shall furnish Bonneville with such necessary 
and appropriate information with respect to such arrangements as shall 
permit Bonneville to carry out its responsibilities under this Tariff. 
The Customer shall be responsible for scheduling arrangements and 
resolution of operating problems on third party electric systems 
related to any transactions provided under this Tariff and for the 
costs associated with resolving those problems.

4. Rates

4.1  Transmission Charge
    Payment hereunder shall be calculated pursuant to the rates and 
formulae in Appendix A, the ET-95 rate schedule or its successor.
4.2  Transmission Losses
    Transmission losses shall be determined on the basis of average 
estimated system losses. The Customer shall compensate Bonneville for 
losses by either providing additional energy for losses associated with 
the scheduled energy or by buying losses from Bonneville in accordance 
with the Firm Power Products and Services (FPS-95) rate schedule in 
Appendix A as specified in the Service Agreement.
4.3  Reactive Charge
    The Customer shall pay for reactive power necessary to provide 
transmission services under this Tariff pursuant to the Firm PTP 
Transmission rate (PT-95) or its successor as specified in the Service 
Agreement.
4.4  Revision to Rates, Charges, and Loss Factors
    Bonneville may periodically revise rates, charges, and transmission 
loss factors and apply such revisions to Service Agreements.

5. Initiating Service

5.1  Nonfirm Umbrella Service Agreement
    To initiate nonfirm service an Applicant must submit a completed 
Application to Bonneville Power Administration; Attention, Manager, 
Short-Term Contracts; P.O. Box 491; Vancouver, Washington, 98666-0491. 
Such Application shall include:
    (a) The identity, address, and telephone number of the Applicant;
    (b) A statement that the Applicant is, or will be upon commencement 
of service, an Eligible Customer under this Tariff pursuant to section 
1.7;
    (c) The name, title, and phone number of the contact person for the 
Applicant;
    (d) The proposed dates for initiating and terminating the Service 
Agreement.
    The Application shall be used to prepare an `umbrella' Service 
Agreement as discussed in section 8.1.
5.2  Short-Term Firm Service Agreement
    To initiate short-term firm service, the Application shall include 
in addition to the above information the following additional 
information:
    (a) The identity of the Delivering Party and Receiving Party;
    (b) The Point(s) of Interconnection and the Point(s) of Delivery;
    (c) The amount of power, including peak demand and total amount of 
energy;
    (d) The identity of the Control Area(s) in which the resource and 
ultimate consumer of power is/are located.
    The information in sections 5.1 and 5.2 shall be used to prepare a 
``short-term firm'' Service Agreement as discussed in section 8.1.

6. Electronic Bulletin Board
    Bonneville shall cooperate with Customers and utilities who are 
members of the WSCC to develop an electronic bulletin board that is 
compatible and useful to all WSCC members. The purpose of the 
electronic bulletin board is to make known to users the available 
transmission capacity and any proposals to increase that capacity.

7. Scheduling

7.1  General Conditions
    All energy to be transmitted by Bonneville on a nonfirm basis 
hereunder shall be scheduled one working day prior to the day service 
is to commence, but changes may be made up to the hour preceding the 
hour of service when reasonably practicable which is the procedure used 
by Bonneville in scheduling its own Energy Transmission transactions. 
All power to be transmitted by Bonneville on a short-term firm basis 
hereunder shall be scheduled in advance pursuant to the terms of the 
Service Agreement and will reflect the procedures used by Bonneville in 
scheduling its own transactions. Bonneville will make schedule changes 
on short notice if reasonably practicable.
7.2  Due Diligence
    Bonneville and the Customer shall exercise due diligence and 
reasonable care and foresight in arranging for and operating their 
respective sources of supply and other facilities so that scheduled 
amounts of energy shall be delivered in accordance with section 7.1.
7.3  Curtailment
    In the event Bonneville is forced to curtail deliveries of Energy 
Transmission Service, Bonneville shall notify the Receiving Party. 
Recipients of nonfirm Energy Transmission Service shall be curtailed 
prior to other transmission services customers and on the same basis as 
Bonneville's and Network Integration Service Customers' economy 
transactions, except where necessary to deliver Bonneville's and 
[[Page 12934]] Network Integration Customers' hydroelectric power 
subject to spill or threatened spill. The Receiving Party shall have 
responsibility for curtailing unless otherwise provided in the Service 
Agreement.

8. Service Agreements

8.1  Requirement for a Signed Service Agreement
    Bonneville shall provide Energy Transmission Service under this 
Tariff only to Customers that have signed a Service Agreement with 
Bonneville. For nonfirm service hereunder, Bonneville and the Customer 
may enter into an ``umbrella'' Service Agreement that would provide the 
Customer transmission access to the Bonneville system to the extent 
that capacity is available on Bonneville's system, subject to the 
scheduling provisions set forth in section 7. The ``umbrella'' Service 
Agreement shall contain, among other provisions, the term, scheduling 
provisions and interruption rights, a statement that any Points of 
Interconnection or Points of Delivery on Bonneville's Energy 
Transmission Facilities may be used for transmitting and receiving 
energy, and billing information, including the rates and charges for 
such service. For short-term firm service hereunder, Bonneville and the 
Customer may enter into a transaction specific ``short-term firm'' 
Service Agreement that would provide the Customer transmission access 
to the Energy Transmission Facilities to the extent capacity is 
available on Bonneville's system. Such Service Agreement shall contain 
the same information that appears in the ``umbrella'' Service Agreement 
except that the Point(s) of Interconnection and the Point(s) of 
Delivery shall be specified. In addition, the ``short-term firm'' 
Service Agreement shall include both the demand and total amount of 
energy to be delivered.
8.2  Obligations on Acceptance of Service
    Acceptance of service by a Customer pursuant to a Service Agreement 
under this Tariff commits the Customer and Bonneville both to the 
provisions of this Tariff and to the terms of the individual Service 
Agreement.

9. Billing

    Bonneville shall bill in accordance with the billing information in 
Appendix A, General Rate Schedule Provisions, or successor, or as they 
may from time to time be revised.

10. Records

10.1  Recordkeeping Obligations
    Bonneville and the Customer shall keep such records as may be 
needed to afford a clear history of all transactions under this Tariff. 
The originals of all such records shall be retained for a minimum of 2 
years plus the current year (or such longer period as may be 
appropriate and copies shall be delivered to the other party on 
request.)
10.2  Customer's Right to Examine Records
    The Customer shall have the right, during normal business hours, to 
examine the accounting and other records for the last 2 calendar years 
relating to its transactions under this Tariff and shall have the right 
to make such audits and copies of records as it shall deem necessary or 
desirable. Such examinations shall be at the Customer's expense and may 
be conducted no more frequently than once every 2 years.

11. Liability and Indemnification

11.1  Western Interconnected Systems Agreement
    If an Applicant is a party to the Western Interconnected Systems 
Agreement Limiting Liability, such agreement shall continue in full 
force and effect as between the parties to the extent that such 
provisions may apply to the transactions contemplated by this Tariff.
11.2  No Western Interconnected Systems Agreement
    If an Applicant is not a party to the Western Interconnected 
Systems Agreement Limiting Liability and there is no other agreement on 
file with the Commission governing liability and indemnification 
between Bonneville and the Customer, then in such event additional 
provisions for protection of electric generation facilities or 
transmission facilities and liability and indemnification may be 
required. Such additional provisions shall be set forth in the 
Applicant's Service Agreement.

12. Creditworthiness

    For the purpose of determining the ability of the Customer to meet 
its obligations related to service hereunder, Bonneville may require 
reasonable credit review procedures which may include, but shall not be 
limited to, verification that the Customer is not operating under any 
State or Federal bankruptcy laws, is not subject to the uncertainty of 
pending liquidation or regulatory proceedings in State or Federal 
courts, and no significant collection lawsuits or judgments are 
outstanding which would seriously reflect upon the Customer's ability, 
in Bonneville's determination, to remain solvent. In addition, 
Bonneville may require the 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 this Tariff or an alternative form of security 
proposed by the Customer and acceptable to Bonneville that protects 
Bonneville's Native Load Customers against the risk of nonpayment. Any 
disputes over the terms of such security arrangements shall be subject 
to the provisions of the Tariff.

13. Procedures to Resolve Transmission Complaints

    Any complaint arising from an Application hereunder may be 
resolved, at the Customer's discretion, by either:
    (a) A voluntary dispute resolution process, which may include 
mediation or arbitration or both, pursuant to the terms of a regional 
transmission association governing agreement, or such other dispute 
resolution rules as may be agreed to by Bonneville and the Customer; or
    (b) A transmission complaint filed with the Commission.

    Issued in Portland, Oregon, on February 17, 1995.
Jack Robertson,
Deputy Chief Executive Officer.
[FR Doc. 95-5816 Filed 3-8-95; 8:45 am]
BILLING CODE 6450-01-P