EXHIBIT 10.25.22
NINETY-SECOND AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
(NEPOOL SMD - CONFORMING RNA CHANGES)
THIS NINETY-SECOND AGREEMENT AMENDING NEW ENGLAND POWER POOL
AGREEMENT, dated as of November 1, 2002 ("Ninety-Second
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" or "RNA") 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 October 4, 2002; and
WHEREAS, the Participants desire to amend the Restated
NEPOOL Agreement, as heretofore amended, to reflect the revisions
detailed herein.
NOW, THEREFORE, upon approval of this Ninety-Second
Agreement by the NEPOOL Participants Committee in accordance with
the procedures set forth in the NEPOOL Agreement, the
Participants agree as follows:
SECTION 1
NEPOOL TARIFF AMENDMENTS
1.1 The Restated NEPOOL Agreement is amended as set forth
in Appendix A hereto.
SECTION 2
MISCELLANEOUS
2.1 Effective Dates. The amendments provided in this
Ninety-Second Agreement shall become effective as of
the SMD Effective Date as defined in NEPOOL FERC
Electric Rate Schedule No. 7, NEPOOL Market Rule 1.
2.2 Defined Terms. Terms used in this Ninety-Second
Agreement that are not defined herein shall have the
meanings ascribed to them in the Restated NEPOOL
Agreement, NEPOOL Tariff, and NEPOOL Market Rule 1.
Appendix A
Ninety-Second Agreement
AMENDMENTS TO THE RESTATED NEPOOL
AGREEMENT
1.1 The first paragraph of Section 1 is amended to read as
follows:
Whenever used in this Agreement, in either the singular or
plural number, the following terms shall have the following
respective meanings (an asterisk (*) indicates that the
definition may be modified in certain cases pursuant to
Section 1.109, a single caret (^) indicates that the
definition is no longer effective for service on and after
the SMD Effective date, and a double caret (^^) indicates
that the definition is no longer effective for service on
and after the ICAP Effective Date):
1.2 The following definitions are deleted in their entirety:
"Market Products" and "Third Effective Date"
1.3 The following definitions are amended to be identified by a
single caret (^):
Adjusted Net Interchange;
AGC Capability;
AGC Entitlement;
Bid Price;
Dispatch Price;
Electrical Load;
Energy Entitlement;
Firm Contract;
HQ Contracts;
HQ Energy Banking Agreement;
HQ Phase II Percentage;
Monthly Peak;
Operable Capability;
Operating Reserve Entitlement;
Other HQ Energy;
Scheduled Dispatch Period;
System Contract;
Unit Contract; and
Minute Spinning Reserve.
1.4 In addition, the heading of the last Subsection of Section 1
is amended to be identified by a single caret (^) so that it
reads as follows:
Modification of Certain Definitions When a Participant
Purchases a Portion of Its Requirements from Another
Participant Pursuant to a Firm Contract ^
1.5 The following definitions are amended to be identified by a
double caret (^^):
Adjusted Load;
Adjusted Monthly Peak;
HQ Phase I Energy Contract;
HQ Phase I Percentage;
HQ Phase II Gross Transfer Responsibility;
HQ Phase II Net Transfer Responsibility;
Installed Capability Entitlement;
Installed Capability Responsibility;
Installed System Capability;
NEPOOL Installed Capability Responsibility;
New Unit;
Pool-Planned Unit;
Proxy Unit; and
Target Availability Rate.
1.6 The following definitions are inserted in the appropriate
alphabetical order:
ICAP Effective Date is a date fixed by the ISO and posted on
its website as the effective date for the Installed Capacity
arrangements contemplated by Section 8 of Market Rule 1,
that is (i) the first day of a calendar month; (ii) at least
one full calendar month after the SMD Effective Date; and
(iii) at least thirty (30) days after the ISO has provided
notice to the Commission that NEPOOL System Rules and
computer programs necessary to implement the Installed
Capacity arrangements contemplated by Section 8 of Market
Rule 1 are fully in place and functional.
Installed Capacity Requirement is defined in Market Rule 1
and represents the level of capacity required to meet the
reliability requirements defined for the NEPOOL Control
Area.
Load Asset is a physical load that has been registered with
the System Operator in accordance with the asset
registration process contained in the NEPOOL System Rules.
Market Rule 1 is NEPOOL Market Rule 1 and attachments as
filed with the Commission on July 15, 2002 as NEPOOL FERC
Electric Rate Schedule No. 7, as it may be amended from time
to time.
NEPOOL Transmission System is the system of transmission
facilities within the NEPOOL Control Area under the ISO's
operational jurisdiction.
Ownership Share is a term to be effective on and after the
SMD Effective Date that is a right or obligation, for
purposes of settlement, to a percentage share of all credits
or charges associated with a generating unit or Load Asset,
where such unit or load is interconnected to the NEPOOL
Transmission System.
Settlement Obligation is, on and after the SMD Effective
Date, an obligation for Energy, Operating Reserve or
Regulation as defined in Market Rule 1.
SMD Effective Date is the date fixed by the ISO and posted
on its website as the effective date for the market
provisions of Sections 1-7 of Market Rule 1. The SMD
Effective Date may not occur until (i) a date after a
Commission order is issued permitting Market Rule 1 to go
into effect; (ii) at least two weeks after the ISO has given
the Commission written notice that the NEPOOL System Rules
and computer programs necessary to implement Market Rule 1
are fully in place and functional; and (iii) at least 48
hours after the ISO has posted the date on its website.
Transmission Congestion Revenue is defined in Section 5.2.5
of Market Rule 1.
1.7 The definition for "Administrative Procedures" is renamed to
read "ISO Administrative Procedures" and wherever
"Administrative Procedures" is used in the Restated NEPOOL
Agreement, the references are amended prospectively to read
"ISO Administrative Procedures".
1.8 The definition for "Automatic Generation Control or AGC" in
Section 1 is amended to read as "Automatic Generation
Control or AGC or Regulation".
1.9 The following sentence is added to the end of the definition
of "Entitlement":
"On or after the SMD Effective Date, references to an
`Entitlement' shall be deemed to refer to an `Ownership
Share' as defined in this Agreement."
1.10 The definition of "Entity" is amended by replacing the
reference to "AGC" in subsection (a) with a reference to
"AGC/Regulation".
1.11 The definition of "Excepted Transaction" is amended to read
as follows:
Excepted Transaction is a transaction specified in Section
25 of the Tariff or the applicable period specified in that
Section.
1.12 The definitions for "Facilities Study" and "System Impact
Study" are amended by replacing the phrase "NEPOOL
Transmission System" with the term "PTF".
1.13 The following sentence is added to the end of the definition
of "NEPOOL Objective Capability":
"On and after the SMD Effective Date, references to NEPOOL
Objective Capability shall be deemed to mean `Installed
Capacity Requirement' as defined in this Agreement."
1.14 The definition of "NEPOOL System Rules" is amended to read
as follows:
NEPOOL System Rules are the Market Rules, the NEPOOL
Information Policy, ISO Administrative Procedures and any
other system rules, manuals, procedures, criteria or
Reliability Standards for the operation of the System and
administration of the NEPOOL Market, the NEPOOL Agreement
and the NEPOOL Tariff.
1.15 The definition of "NEPOOL Transmission System" is amended to
read as follows:
NEPOOL Transmission System is the system of transmission
facilities within the NEPOOL Control Area under the ISO's
operational jurisdiction.
1.16 The definition of "Operating Reserve" is amended to read as
follows:
Operating Reserve, until the SMD Effective Date, is any or a
combination of 10-Minute Spinning Reserve, 10-Minute Non-
Spinning Reserve, and 30-Minute Operating Reserve, as the
context requires. On and after the SMD Effective Date,
Operating Reserve shall have the meaning expressed in Market
Rule 1.
1.17 Clause (ii) in the definition of "Transmission Customer" is
amended by inserting the parenthetical "(as defined in the
Tariff)" immediately after the phrase "Designated Agent".
1.18 The definition of 10-Minute Spinning Reserve is amended to
read as follows:
10-Minute Spinning Reserve in an hour are the following
resources that are dispatched by the System Operator in
accordance with the NEPOOL System Rules, to be available to
provide contingency protection for the system: (1) the
Kilowatts of operable capability of an electric generating
unit or units that are synchronized to the system, unloaded
during all or part of the hour, and capable of providing
contingency protection by loading to supply Energy
immediately on demand, increasing the Energy output over no
more than ten minutes to the full amount of generating
capacity so designated, and sustaining such Energy output
for so long as the System Operator determines in accordance
with the NEPOOL System Rules is necessary; and (2) any
portion of the electrical load of a Participant that the
System Operator is able to verify as capable of providing
contingency protection by immediately on demand reducing
Energy requirements within ten minutes and maintaining such
reduced Energy requirements for so long as the System
Operator determines in accordance with the NEPOOL System
Rules is necessary.
1.19 The definition of 10-Minute Non-Spinning Reserve is amended
to read as follows:
10-Minute Non-Spinning Reserve in an hour are the following
resources that are dispatched by the System Operator in
accordance with the NEPOOL System Rules to be available to
provide contingency protection for the system: (1) the
Kilowatts of operable capability of an electric generating
unit or units that are not synchronized to the system,
during all or part of the hour, and capable of providing
contingency protection by loading to supply Energy within
ten minutes to the full amount of generating capacity so
designated, and sustaining such Energy output reducing
Energy requirements within ten minutes and maintaining such
reduced Energy requirements for so long as the System
Operator determines in accordance with the NEPOOL System
Rules is necessary; (2) any portion of a Participant's
electrical load that the System Operator is able to verify
as capable of providing contingency protection by reducing
Energy requirements within ten minutes and maintaining such
reduced Energy requirements for so long as the System
Operator determines in accordance with the NEPOOL System
Rules is necessary; and (3) any other resources and
requirements that were able to be designated for the hour as
10-Minute Spinning Reserve but were not designated by the
System Operator for such purpose in the hour.
1.20 The definition of 30-Minute Operating Reserve is amended to
read as follows:
30-Minute Operating Reserve in an hour are the following
resources that are dispatched by the System Operator in
accordance with the NEPOOL System Rules to be available to
provide contingency protection for the system: (1) the
Kilowatts of operable capability of an electric generating
unit or units that are any portion of the electrical load of
a Participant that the System Operator is able to verify as
capable of providing contingency protection by reducing
Energy requirements within thirty minutes and maintaining
such reduced Energy requirements for so long as the System
Operator determines in accordance with the NEPOOL System
Rules is necessary; (2) any portion of the electrical load
of a Participant that the System Operator is able to verify
as capable of providing contingency protection by reducing
Energy requirements within thirty minutes and maintaining
such reduced Energy requirements for so long as the System
Operator determines in accordance with the NEPOOL System
Rules is necessary; and (3) any other resources and
requirements that were able to be designated for the hour as
10-Minute Spinning Reserve or 10-Minute Non-Spinning Reserve
but were not designated by the System Operator for such
purposes in the hour.
1.21 The third paragraph of Section 2.2 is amended to read as
follows:
As provided in Section 14, certain portions of Section 14
which became effective on the Second Effective Date will be
superseded on the SMD Effective Date by Market Rule 1.
1.22 A new fourth paragraph of Section 2.2 is added to read as
follows:
As provided in Section 12, certain portions of Section 12
which became effective on or after the Second Effective Date
will be superseded on the ICAP Effective Date by Market Rule
1.
1.23 The following two new sentences are added to the end of
Section 12.1:
Sections 12.2, 12.5 and 12.7 of this Agreement which became
effective on or after the Second Effective Date will cease
to be effective and be superseded on the ICAP Effective Date
by Market Rule 1. On and after the ICAP Effective Date,
each Participant shall be obligated to satisfy each month
its capacity obligation pursuant to Section 8.2.2 of Market
Rule 1.
1.24 Section 13.4 is amended to read as follows:
Objectives of Day-to-Day System Operation.
(a) Until the SMD Effective Date, the day-to-day scheduling
and coordination through the System Operator of the
operation of generating units and other resources shall
be designed to assure the reliability of the bulk power
system of the NEPOOL Control Area. Such activity
shall:
(i) satisfy the NEPOOL Control Area's Operating
Reserve requirements, including the proper
distribution of those Operating Reserves;
(ii) satisfy the Automatic Generation Control
requirements of the NEPOOL Control Area; and
(iii) satisfy the Energy requirements of all
Electrical Loads of the Participants, all at the
lowest practicable aggregate dispatch cost to the
NEPOOL Control Area in light of available Bid
Prices and Participant-directed schedules.
(b) On and after the SMD Effective Date, the System
Operator shall satisfy the energy and ancillary service
requirements of the NEPOOL Control Area in accordance
with Market Rule 1 on the basis of least-cost, security-
constrained dispatch and the prices and operating
characteristics offered by Participants.
1.25 The following introductory paragraph is added following the
heading to Section 14 so that it reads as follows:
Section 14 of this Agreement, which became effective on the
Second Effective Date, will cease to be effective and will
be superceded on the SMD Effective Date by Section 14A and
Market Rule 1.
1.26 A new Section 14A is added so that it reads as follows:
SECTION 14A
PARTICIPANT MARKET TRANSACTIONS
ON AND AFTER THE SMD EFFECTIVE DATE
14A.1 NEPOOL Market Rights and Obligations.
(a) Energy and Operating Reserve Settlement. The
rights and Settlement Obligations of the
Participants with respect to the furnishing and
receipt of Energy and Operating Reserve shall be
determined in accordance with this Section 14A and
Market Rule 1.
(b) Regulation Settlement Obligation. Settlement
Obligations for Regulation for each hour are
established by allocating the total Regulation
designated for the hour in the Real-Time Market by
the System Operator to Participants under the
Agreement and Non-Participants under the Tariff.
Each Participant or non-Participant Transmission
customer shall have for each hour a Settlement
Obligation for Regulation in accordance with
Market Rule 1. A Settlement Obligation for
Regulation shall require the Participant to pay
its share of the Regulation costs in accordance
with Market Rule 1.
14A.2 Right to Receive Service and Payment. Except as
emergency circumstances may result in the System
Operator requiring load curtailments by Participants,
and subject to the availability of transmission
capacity and ICAP Resources, or other generation or
other resources available to the ISO, each Participant
shall be entitled to receive from other Participants
such amounts, if any, of Energy, Operating Reserve,
ICAP and Regulation as it purchases, and each
Participant or Non-Participant shall be entitled to
receive payment for all services provided, in
accordance with the NEPOOL System Rules.
14A.3 Contract and Scheduling Authority. The Participants
Committee is authorized to enter into agreements
between the NEPOOL Control Area and another Control
Area on behalf of and in the names of all Participants
with Non-Participants to purchase or furnish emergency
Energy that is available for the System Operator to
schedule in order to ensure reliability in the NEPOOL
Control Area or neighboring Control Areas. Emergency
purchases from another Control Area pursuant to this
Section 14A.3 should not be implemented unless the
Participants have been unable to furnish such Supply
Offers (as defined in Market Rule 1) as the System
Operator determines are required to ensure reliability.
For emergency purchases and sales pursuant to this
Section 14A.3, the treatment of the transaction with
the Non-Participant in the determination of a
Locational Marginal Price (as defined in Market Rule 1)
shall be in accordance with Market Rule 1. Energy (and
related services) from any such emergency purchases
shall be deemed to be furnished to and shall be paid
for by Participants, in accordance with Market Rule 1.
Energy (and related services) from any such emergency
sales shall be deemed to be furnished to and shall be
paid for by the Non-Participant, in accordance with
this Section 14A.3 and the terms of any such
contractual arrangement with the Non-Participant.
14A.4 Bilateral Transactions and Participant Transactions
with Non-Participants.
(a) Participants may enter into internal bilateral
transactions and External Transactions (as defined
in Market Rule 1) for the purchase or sale of
Energy or other products to or from each other or
any other entity, subject to the obligations of
Participants to make ICAP Resources available for
dispatch by the System Operator. External
Transactions that contemplate the physical
transfer of Energy or obligations to or from a
Participant shall be reported to and coordinated
with the System Operator in accordance with Market
Rule 1.
(b) In the event a Participant has the right to
receive Energy, Operating Reserve and/or
Regulation from a Non-Participant under a
bilateral transaction, such Energy, Operating
Reserve and/or Regulation may be submitted by the
Participant to the System Operator in a Supply
Offer (as defined in Market Rule 1) as a proposal
to furnish Energy, Operating Reserve, and/or
Regulation to the extent the contract permits in
accordance with the Market Rule 1.
14A.5 Losses. The cost of losses and the recovery
thereof shall be determined in accordance with Market
Rule 1.
14A.6 Congestion Cost and Revenues. Congestion Cost and
the recovery and disbursement thereof shall be
determined in accordance with Market Rule 1.
14A.7 Operating Reserve and RMR.
(a) Operating Reserve. The calculation, payment and
recovery of Operating Reserve amounts shall be
determined in accordance with Market Rule 1.
(b) RMR Operating Reserve Charges. The designation of
Reliability Must Run Resources and the calculation
and recovery of RMR Operating Reserve Charges
shall be determined in accordance with Market Rule
1.
1.27 Sections 15.1, 16.6, and Section17.7 are amended by
substituting the term "PTF" in place of the phrase "NEPOOL
Transmission System" at each occurrence.
1.28 The headings in the first row of the schedule set forth in
Section 16.6.A are clarified by identifying the time period
associated with the corresponding year so that they read as
follows:
Year One Year Two Year Three Year Four Year Five Year Six
[2/1/97- [2/1/98- [2/1/99- [2/1/00- [2/1/01- [2/1/02-
1/31/98] 1/31/99] 1/31/00] 1/31/01] 1/31/02] 1/31/03]
1.29 The following new sentence is added to the end of Section
16.6.D:
The revenues received by NEPOOL pursuant to Schedules 3-6 to
the Tariff for service rendered on or after the SMD
Effective Date shall be distributed in accordance with
Market Rule 1.
1.30 Section 16.6.E is amended to read as follows:
Congestion Payments. Until the SMD Effective Date, any
congestion uplift charge received as a payment for
transmission service pursuant to Section 24 of the
Tariff for any hour shall be applied in accordance with
Section 14.5(a) in payment for Energy service. On or after
the SMD Effective Date, Transmission Congestion Revenue
received for service provided shall be applied in accordance
with Market Rule 1.
1.31 The formula set forth in Section 19.3(b) used to determine
the percentage to be paid for a month by a Participant of
the aggregate amount payable pursuant to Section 19.3(b) is
amended to read as follows:
W = LO + GO divided by LO(1) + GO(1) all times 0.50
+
POL + GOP DIVIDED BY POL(1) + GOP(1) all times 0.50 in which
W is the percentage to be paid for the month by
a Participant of the aggregate amount payable
pursuant to this subsection (b) by all
Participants for the month.
LO is the Participant's total Real Time Load
Obligation as defined and determined in
accordance with Market Rule 1 for the month.
GO is the Participant's Real Time Generation
Obligation as defined and determined in
accordance with Market Rule 1.
PLO is the maximum Real Time Load Obligation of
the Participant during any hour in the month
(the "Peak Real Time Load Obligation").
GOP is the maximum Real Time Generation
Obligation of the Participant during any hour
in the month (the "Real Time Generation
Obligation Peak").
LO(1) is the aggregate Real Time Load
Obligation of all Participants for the month.
GO(1) is the aggregate Real Time Generation
Obligation of all Participants for the month.
PLO(1) is the aggregate Peak Real Time Load
Obligation of all Participants for the month.
GOP(1) is the aggregate Real Time Generation
Obligation Peak of all Participants for the month.