Exhibit 10.25.18
EIGHTY-EIGHTH AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
(SCHEDULE 16 AMENDMENT)
THIS EIGHTY-EIGHTH AGREEMENT AMENDING NEW ENGLAND POWER POOL AGREEMENT,
dated as of October 4, 2002 ("Eighty-Eighth 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 the 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; and
WHEREAS, the Restated NEPOOL Agreement and the NEPOOL Tariff have
subsequently been amended numerous times, the most recent amendment dated as
of June 21, 2002; and
WHEREAS, the Participants desire to amend the Restated NEPOOL Agreement,
including the NEPOOL Tariff, as heretofore amended, to reflect the revisions
detailed herein.
NOW, THEREFORE, upon approval of this Eighty-Eighth Agreement by the
NEPOOL Participants Committee in accordance with the procedures set forth in
the NEPOOL Agreement, the Participants agree as follows:
SECTION 1
AMENDMENTS TO NEPOOL TARIFF
1.1 Schedule 16 to the NEPOOL Tariff is amended to read as set forth in
Attachment A hereto.
SECTION 2
MISCELLANEOUS
2.1 This Eighty-Eighth Agreement shall become effective on January 1,
2003, or on such other date as the Commission shall provide that
the amendments reflected herein shall become effective.
2.2 Terms used in this Eighty-Eighth Agreement that are not defined
herein shall have the meanings ascribed to them in the NEPOOL Agreement.
Attachment A
SCHEDULE 16
System Restoration and Planning Service from Generators
System Restoration and Planning Service is necessary to ensure the
continued reliable operation of the New England Transmission System.
System Restoration and Planning Service enables the System Operator to
designate specific generators interconnected to the transmission or
distribution system at strategic locations capable of supplying load
to re-energize the transmission system following a system-wide blackout.
These designated generators are able to start without an outside electrical
supply and are otherwise known as "Black Start Capable." The planning
and maintenance of adequate capability for restoration of the NEPOOL Control
Area following a blackout represents a benefit to all entities using the
power system. Therefore, this service must be taken from the System Operator.
In contrast to the System Restoration and Planning Service described herein,
the actual supply of power that would allow a power producer to restart its
own generating units may itself be self-supplied or purchased from another
power producer independent of the NEPOOL Control Area arrangements formulated
by the System Operator. The Black Start Capability intrinsic of System
Restoration and Planning Service is to be provided by designated Participants
through the System Operator.
I. Rate Formulas
A Transmission Customer Purchasing either Regional Network Service under
Schedule 9 of this Agreement or Internal Point to Point Service under
Schedule 10 of this Agreement, or a Transmission Customer making Unauthorized
Use shall be required to pay NEPOOL for its share of Black Start Restoration
and Planning Service ("Black Start Responsibility") as determined in accordance
with the following formulas:
MRSR = (1/12) times 1 divided by the sum of (NL + IPP + UAU) times (C)
Where:
MRSR = The Transmission Customers' Monthly Restoration Service Rate.
NL = The aggregate of the individual sums of each Participant's or
Non-Participant's Network Load for the billing month.
IPP = The aggregate of the individual sums of each Participant's or
Non-Participant's maximum Reserved Capacity for Internal
Point-to-Point Service for each load served within a Local
Network or Network(s) during the billing month.
UAU = The aggregate of the individual sums of each Participant's or
Non-Participant's Maximum Unauthorized Use associated with
Internal Point-to-Point Service for each load served within a
Local Network or Network(s) during the month.
C = The sum of Ci for that month for each Black Start Generator, as
defined in Section II below.
Each individual Participant's or Non-Participant's charge in any billing month
would be calculated by the following formula:
MC = (MRSR)(NLi + IPPi + UAUi)
Where
MC = The Monthly Charge.
NLi = The sum of a Participant's or Non-Participant's Network Load for
the billing month.
IPPi = The sum of a Participant's or Non-Participant's maximum Reserved
Capacity for Internal Point-to-Point Service for each load served
within a Local Network or Network(s) during the billing month.
UAUi = The sum of a Participant's or Non-Participant's Maximum
Unauthorized Use associated with Internal Point-to-Point Service
for each load served within a Local Network or Network(s)
during the month.
A separate charge for this service based upon the above rates will be added to
the Transmission Customer's monthly bill.
II. Compensation to Generators
A. Eligibility. In order to be designated as a "Black Start Generator"
providing System Restoration Service and to be eligible for
compensation under this Schedule 16 of the NEPOOL Open Access
Transmission Tariff, a generator must meet the following criteria:
1. The unit is "Black Start Capable" in that it has the ability of
being started without energy from other NEPOOL generating units
in such a way that it meets all of the requirements stated in
Operating Procedure 11 (Black Start Capability Eligibility &
Testing Requirements); and
2. The unit owner, NEPOOL, and the System Operator agree that the
unit should be designated Black Start Capable and accordingly is
listed as a Black Start unit in Operating Procedure 11.
Each generator which is eligible for and seeks compensation under the
NEPOOL Open Access Transmission Tariff for providing System
Restoration Service shall execute an agreement with NEPOOL
incorporating the terms and conditions of service set forth in this
Schedule 16.
B. Compensation. A Black Start Generator shall be entitled to
compensation in a month based on the following formula:
Ci = ($Y/kw-yr/12) x (the unit's Monthly Claimed Capability
for that month)
Where "Y" = $3.75 for the period from the effective date as determined
by the Commission through and including December 31, 2003; $4.00 for
calendar year 2004, $4.25 for calendar year 2005; and $4.50 for
calendar year 2006 and thereafter.
C. Terms and Conditions of Service
1. Generator Owner's commitment to provide System Restoration and
Planning Service:
A. Generators need to commit initially for at least three years to
provide System Restoration and Planning Service from the date of
the last black-start/system restoration study. The most
recent study was conducted in October 1998.
B. All succeeding commitments must be at least for three years.
C. Generators may, and are encouraged to, commit to provide System
Restoration and Planning Service for periods greater than three
years with System Operator and NEPOOL concurrence.
D. Generators need to give at least one-year notice that they will no
longer be able to provide System Restoration and Planning Service.
This one-year notice cannot truncate the generator's commitment to
provide System Restoration and Planning Service except as noted in
item 1(E) or 1(F) below.
E. If due to an event of Force Majeure a Generator Owner cannot
provide System Restoration and Planning Service, the above
notification requirements stated in items 1(A) and 1(B) are not
binding.
F. If an owner of a generation unit that is designated Black Start
Capable decides to retire that unit, then the three year
requirement to provide System Restoration and Planning Service
from that unit is not binding. The one-year notice, however, is
binding.
2. Performance obligations of generators that are providing System
Restoration and Planning Service:
A. Generators that are providing System Restoration and Planning
Service will be tested in accordance with Operating Procedure 11
or its successor, which may be revised from time to time.
B. Units that are providing System Restoration and Planning Service
must start-up within the prescribed time stipulated in Operating
Procedure 11 (Black Start Capability Eligibility & Testing
Requirements). Not all unmanned units that are providing System
Restoration and Planning Service will be asked to start-up at the
same time.
C. If a unit fails a System Restoration and Planning Service test,
the owner must incur the necessary costs to make that unit capable
of passing the test within a reasonable amount of time. Until the
unit passes another System Restoration and Planning Service test,
it would not be compensated for providing System Restoration and
Planning Service. All costs associated with System Restoration and
Planning Service unit re-tests are at the owner's expense.
3. Obligations by System Operator and NEPOOL to generators that are
providing System Restoration and Planning Service:
A. Generators that commit to provide System Restoration and Planning
Service will not have their Black Start Capable designation
terminated within the time period of their commitment.
B. The System Operator and NEPOOL must provide at least one-year
notice to the owner or owners of generation units that are
providing System Restoration and Planning Service prior to
terminating that unit's designation as Black Start Capable.
C. There are no additional restrictions on generation maintenance
of designated Black Start Capable units beyond what exists for
non-Black Start units except that designated Black Start generation
units cannot take seasonal outages.