Exhibit 10.23.7
New England Power Pool 2nd Rev Sheet No. 1
FERC Electric Third Revised Rate Schedule No. 5
Restated NEPOOL Agreement
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SEVENTY-SIXTH AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
(Compliance with June 13, 2001 Orders)
THIS SEVENTY-SIXTH AGREEMENT AMENDING NEW ENGLAND POWER POOL AGREEMENT,
dated as of June 29, 2001 (the "Seventy-Sixth Agreement"), amends the New
England Power Pool Agreement (the "NEPOOL Agreement"), as amended.
WHEREAS, the NEPOOL Agreement as in effect on December 1, 1996 was
amended and restated by the Thirty-Third Agreement Amending New England Power
Pool Agreement dated as of December 1, 1996 (the "Thirty-Third Agreement") in
the form of the Restated New England Power Pool Agreement ("Restated NEPOOL
Agreement") attached to the Thirty-Third Agreement as Exhibit A thereto, and the
Thirty-Third Agreement also provided for the NEPOOL Open Access Transmission
Tariff (the "NEPOOL Tariff") which is Attachment B to the Restated NEPOOL
Agreement;
WHEREAS, the Restated NEPOOL Agreement and the NEPOOL Tariff have
subsequently been amended numerous times, with such amendments most recently
consolidated, respectively, in FERC Electric Third Revised Rate Schedule No. 5,
submitted in Docket No. ER00-2894-000, and FERC Electric Tariff, Fourth Revised
Volume No. 1, submitted in Docket Nos. EL00-62-000 et al.;
WHEREAS, on June 13, 2001, the Commission issued two orders
(collectively, the "Orders"), one in Docket Nos. EL00-62-004 [et al., ISO New
England Inc.,] 95 FERC P. 61,384 (2001), wherein it directed NEPOOL to file
certain amendments to the NEPOOL Agreement within 30 days of that order, and the
other in Docket No. ER98-3853-005, [New England Power Pool,] 95 FERC P. 61,383
(2001), wherein the Commission granted rehearings and clarifications that
require NEPOOL to file certain amendments to the NEPOOL Agreement within 30 days
of that order; and
WHEREAS, in order to effect compliance with the Orders, the NEPOOL
Participants desire to amend the NEPOOL Agreement, as heretofore amended, to
reflect the revisions detailed herein.
NOW, THEREFORE, upon approval of this Seventy-Sixth Agreement by the
NEPOOL Participants Committee in accordance with the procedures set forth in the
NEPOOL Agreement, the Participants agree as follows:
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Issued by: David T. Doot, Secretary Effective: June 13, 2001
Issued on: July 13, 2001 PENDING
Filed to comply with order of Federal Energy Regulatory Commission,
Docket No. EL00-62-004 et al. issued June 13, 2001, 95 FERC P. 61,384 (2001).
SECTION 1
AMENDMENTS TO NEPOOL AGREEMENT
1.1 Amendment to Section 7.5(n). Section 7.5(n) of the Restated NEPOOL
Agreement is amended to read as follows:
(n) Subject to Section 20(h), the Participants Committee shall
have such further powers and duties as are conferred or
imposed upon it by other sections of this Agreement.
1.2 Clarification of Technical Committee Responsibilities. Insert the
following language at the end of the introductory clause of Sections
8.4, 9.4 and 10.4 of the Restated NEPOOL Agreement, after the word
"functions" and before the comma: "as necessary and appropriate in
light of Section 20(h)".
1.3 Amendment to Section 20(h). Section 20(h) of the Restated NEPOOL
Agreement is amended by adding the following provisions to the end of
that subsection:
Up until the date on which a Commission-approved regional transmission
organization for the NEPOOL Control Area (other than the ISO) is
activated, the ISO shall have responsibility for the long-range system
assessment and transmission expansion plans based on its judgment of
the system's needs. The ISO shall have sole responsibility to develop
such new NEPOOL System Rules as may be necessary to allow the ISO to
carry out its obligations under the ISO Agreement.
SECTION 2
AMENDMENTS TO NEPOOL TARIFF
2.1 Amendments to Section 51.1. The first sentence of the first paragraph
of Section 51.1 of the NEPOOL Tariff is amended by deleting the
following clause: "and subject to the final outcome of rehearing
requests and any appeals with respect to the Commission's June 28, 2000
CMS/MSS Order issued in Docket Nos. EL00-62-000 et al.,".
The second paragraph of Section 51.1 of the NEPOOL Tariff shall be
amended to read as follows:
The NEPOOL Transmission Plan and transmission enhancement and
expansion studies shall be completed by the System Operator.
In completing the Plan, the
System Operator may consult with the Transmission Expansion Advisory
Committee. The Transmission Expansion Advisory Committee shall be
established in accordance with the provisions of Section 51.2, and
shall be responsible for the functions identified in that Section.
2.2 Amendment to Section Heading in Section 51.2. The section heading of
Section 51.2 of the NEPOOL Tariff shall be amended to read
"Establishment of Transmission Expansion Advisory Committee:".
2.3 Amendment to Section 51.2(b). The first sentence of Section 51.2(b) of
the NEPOOL Tariff is amended to read as follows:
Upon request of the System Operator, the Transmission
Expansion Advisory Committee may provide input and feedback to
the System Operator concerning the development of the NEPOOL
Transmission Plan and the conduct of enhancement and expansion
studies.
2.4 Amendments to Sections 51.2(c), 51.2(d) and 51.2(e). Sections 51.2(c),
51.2(d) and 51.2(e) of the NEPOOL Tariff shall be deleted.
2.5 Amendment to Section 51.4(c). Section 51.4(c) of the NEPOOL Tariff is
amended to read as follows:
(c) An Upgrade may be added to the NEPOOL Transmission Plan by the
System Operator at any time in a given year and in doing so
the System Operator may consult with and consider input from
the Transmission Expansion Advisory Committee, within the
scope of its respective functions as specified in subsection
(b) of Section 51.2. Similarly, an Upgrade may be removed from
the NEPOOL Transmission Plan by the System Operator if the
market responds by proposing alternative generation projects,
Merchant Transmission Facilities in accordance with Section
51.8, or demand-side projects, or other circumstances arise
such that the need for the Upgrade no longer exists, and in
doing so the System Operator may consult with and consider
input from the Transmission Expansion Advisory Committee,
within the scope of its functions as specified in subsection
(b) of Section 51.2; provided that the entity responsible for
the construction of the Upgrade is reimbursed for any costs
prudently incurred or prudently committed to be incurred in
connection with the planning, preparation for construction,
and/or construction of the Upgrades proposed for removal from
the Plan. All Upgrades
proposed to be added or removed during this planning process
must meet the requirements of subsection (a) of Section 51.3.
2.6 Amendment to Section 51.4(f). The first and second sentences of Section
51.4(f) of the NEPOOL Tariff shall be amended as follows:
At the initiation of an effort to update a Plan or develop a
new Plan, the System Operator may solicit input for the
updated or new Plan from members of the Transmission Expansion
Advisory Committee. The Transmission Expansion Advisory
Committee shall meet to perform its respective functions in
connection with the preparation of the NEPOOL Transmission
Plan, as specified in subsection (b) of Section 51.2.
2.7 Amendment to Section 51.5(b). Section 51.5(b) of the NEPOOL Tariff
shall be amended as follows:
(b) Written notice of the initiation of a transmission enhancement
and expansion study shall be provided to all members of the
Transmission Expansion Advisory Committee. That notice shall
identify the needs supporting the initiation of the study.
Meetings of the Transmission Expansion Advisory Committee
shall be convened thereafter to identify additional
considerations relating to such a transmission enhancement and
expansion study that were not identified in support of
initiating the study, and to provide input on the study's
scope, assumptions and procedures, consistent with the
responsibilities of the Transmission Expansion Advisory
Committee as set forth in Section 51.2.
2.8 Amendment to Section 51.6(a). Section 51.6(a) of the NEPOOL Tariff is
amended to read as follows:
(a) Except as otherwise provided in subsections (e) or (f) of this
Section 51.6 below, the System Operator shall circulate a
request for proposals ("RFP") inviting any entity or entities,
including without limitation Transmission Owners, to build an
Upgrade included in the NEPOOL Transmission Plan. The RFP
shall be prepared by the System Operator which may, to the
extent desired, consult with the Transmission Owner(s) to
obtain necessary data, information and technical
specifications that the System Operator requires to prepare
the RFP. The RFP shall include appropriate requirements to
safeguard the confidential nature of information provided to
the System Operator in accordance with applicable commercial
practices, the requirements of the NEPOOL Information Policy
and
the requirements of any applicable Commission order. Each such
RFP shall require that respondents meet specified technical
and financial qualifications and submit proposals (i) that
conform with all the requirements of subsection (a) of Section
51.3 and reasonable Transmission Owner requirements and
specifications identified in the RFP which are not
inconsistent with Commission policy, (ii) that are consistent
with other applicable accepted engineering practices,
governmental, technical, and financial requirements, and (iii)
that do not use a Transmission Owner's facilities,
rights-of-way or other property, provided that the affected
Transmission Owner may voluntarily agree, in its own
discretion, to the use of its property in connection with a
proposal.
2.9 Amendment to Section 51.6(b). The first sentence of Section 51.6(b) of
the NEPOOL Tariff is amended to read as follows:
The System Operator shall develop selection criteria and in
doing so may consult with the Transmission Expansion Advisory
Committee and post the criteria on the System Operator's
website before it issues the RFP.
2.10 Amendment to Section 51.6(d). Section 51.6(d) of the NEPOOL Tariff is
amended to read as follows:
(d) Any entity whose proposal is accepted by the System Operator
in accordance with subsection (b) shall be compensated in
accordance with the terms of its accepted proposal, without
regard to whether the actual project cost for the Upgrade was
less than or greater than the costs reflected in the accepted
proposal.
2.11 Amendment to Section 51.6 (e). Section 51.6(e) of the NEPOOL Tariff is
amended to read as follows:
(e) The System Operator in its discretion may exempt certain
Upgrades from the RFP requirements of this Section 51.6
pursuant to standards established by the System Operator. In
such circumstances, the Transmission Owner or Owners on whose
system(s) the proposed Upgrade in the Plan is located, or
its/their designee(s), shall be designated as the appropriate
entity responsible for completion of that Upgrade, in
accordance with the requirements of Section 51.7.
2.12 Amendments to Section 1 of Schedule 11. Section 1(a) of Schedule 11 of
the NEPOOL Tariff is amended to insert "on or after October 1, 1998
and" between the words "costs" and "prior" in the first clause of the
first sentence. The first sentence in Section 1(a) of
Schedule 11 of the NEPOOL Tariff is further amended to insert the
following at the end of that sentence: ", as evidenced either by the
filing of an executed service agreement or by the filing of an
unexecuted service agreement." Section 1(a) is further amended to
delete the second sentence and the list of potential Category A
projects.
Section 1(b) of Schedule 11 of the NEPOOL Tariff is amended in its
entirety to read as follows:
(b) A Category B Project is any one whose Generator Owner
committed to pay for upgrade costs on or after October 29,
1998 and prior to June 22, 1999, as evidenced either by the
filing of an executed service agreement or by the filing of an
unexecuted service agreement. To the extent not otherwise
covered by the preceding sentence, a Category B Project
includes any one (other than a Category A Project) on which
the Generator Owner had expended at least $5,000,000,
including amounts due under irrevocable commitments, as of
June 22, 1999. Category B Projects are those projects listed
as Category A Projects in Section 1(a) of this Schedule 11, as
filed with the Fifty-Eighth Agreement Amending the Restated
NEPOOL Agreement, but no longer qualify as Category A
Projects, that had expended at least $5,000,000 (including
amounts due under irrevocable commitments) as of June 22,
1999, as reasonably determined by the System Operator, as well
as the following projects:
Sithe, Mystic Station Expansion
Sithe Edgar Station Expansion, Fore River
Sithe, West Medway
PG&E, Generating Lake Road Generating
PDC, Milford Power
PDC, Meriden Power
Reliant Energy, Hope Rhode Island
IDC FPL, Bellingham
Constellation, Merrimack (Nickel Hill) Energy Project
SEI, Canal Re-powering
ANP, Bellingham
ANP, Blackstone
Cabot, Island End
Calpine, Westbrook Power
HQ, Bucksport
AES, Londonderry
ConEd, Newington
2.13 Amendment to Section 3(b) of Schedule 11. Section 3(b) of Schedule 11
of the NEPOOL Tariff is amended to change the words "Participants
Committee" which appear in both the first and second sentences to the
words "System Operator".
2.14 Amendment to Section (4) of Schedule 11. Section (4) of Schedule 11 of
the NEPOOL Tariff is amended in its entirety to read as follows:
The costs of Generator Interconnection Related Upgrades in connection
with a Category B Project shall be allocated in the same way as
Generator Interconnection Related Upgrades for Category A projects.
2.15 Amendment to Section (5) of Schedule 11. The first sentence in Section
(5) of Schedule 11 of the NEPOOL Tariff is amended to read as follows:
If a Generator Interconnection Related Upgrade is required in order to
satisfy the Minimum Interconnection Standard in connection with a
Category C Project, the Generator Owner shall be obligated to pay all
of the cost of such upgrade, including all Direct Interconnection
Transmission Costs and any applicable tax gross-up amounts, to the
extent such costs would not have been incurred but for the
interconnection; provided that, if the System Operator determines that
a particular Generator Interconnection Related Upgrade provides
benefits to the system as a whole as well as to particular parties,
then the cost of such Upgrade shall be allocated in the same way as
Reliability Upgrades.
2.16 Amendment of Section (1) of Schedule 12. Section (1) of Schedule 12 of
the NEPOOL Tariff is amended to read as follows:
(1) Allocation and Recovery of Costs for Reliability Upgrades and
Economic Upgrades Associated with the NEPOOL Transmission
Plan. All costs of Merchant Transmission Facilities shall be
recovered in accordance with the recovery mechanism for those
facilities that is filed with and accepted by the Commission.
All costs associated with Upgrades for the interconnection of
Merchant Transmission Facilities shall be treated in the same
fashion and subject to the same rights and obligations as
Generator Interconnection Related Upgrade Costs for Category C
Projects under Schedule 11 of this Tariff, including the
provisions of Sections (5), (6) and (7) of that Schedule, but
excluding the provisional clause at the end of the first
sentence in Section (5) of Schedule 11. To the extent not
otherwise covered above or by Part III or Schedule 11 of the
Tariff or Sections (2) or (3) of this Schedule 12 below, the costs of a
Reliability Upgrade and Economic Upgrade shall be allocated as follows:
(a) If entities have agreed to bear some or all of the cost
responsibility for an Upgrade, the Upgrade costs shall be
allocated to such entities in accordance with that agreement.
(b) To the extent there are Reliability Upgrade or Economic
Upgrade costs that are not allocated in accordance with other
arrangements as identified in the introductory language of
this Section (1) or subparagraph (a) above, such costs shall
be treated as Pool-Supported PTF costs recoverable under
Attachment F to this Tariff.
2.17 Amendment to Attachment F. The introductory paragraph of Attachment F
to the NEPOOL Tariff is amended to read as follows:
The Transmission Revenue Requirements for each Participant will reflect
the Participant's costs with respect to Pool-Supported PTF. The
Transmission Revenue Requirements will be an annual calculation based
on the previous year's calendar data as shown, in the case of
Transmission Providers which are subject to the Commission's
jurisdiction, in the Participants' FERC Form 1 report for that year,
and shall be based on actual data in lieu of allocated data if
specifically identified in the Form 1 report in accordance with the
following formula, except to the extent PTF costs relate to a
Transmission Provider proposal which has been accepted by the System
Operator in accordance with subsection (b) of section 51.6 of the
NEPOOL Tariff, in which case that Transmission Provider may include as
PTF costs in its Transmission Revenue Requirements for such PTF only
the payments made to it in accordance with the terms of its accepted
proposal, without regard to whether the actual project cost for the
Upgrade was less than or greater than the costs reflected in the
accepted proposal:
SECTION 3
MISCELLANEOUS
3.1 This Seventy-Sixth Agreement shall become effective on June 13, 2001,
or such later date as shall be ordered by the Commission.
3.2 Terms used in this Seventy-Sixth Agreement that are not defined herein
shall have the meanings ascribed to them in the NEPOOL Agreement.