Exhibit 10.23.6
THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
THIS THIRTY-THIRD AGREEMENT, dated as of the 1st day of December, 1996,
is entered into by the signatory Participants for the amendment and restatement
by them of the New England Power Pool Agreement dated as of September, 1, 1971
(the "NEPOOL Agreement"), as previously amended by thirty (30) amendments, the
most recent of which was dated as of September 1, 1995.
WHEREAS, the signatory Participants propose to restate the NEPOOL
Agreement to provide for a restructured New England Power Pool and to include
as part of such restated pool agreement a NEPOOL Open Access Transmission
Tariff (the "Tariff");
NOW THEREFORE, the signatory Participants hereby agree as follows:
SECTION I
AMENDMENT AND RESTATEMENT OF NEPOOL AGREEMENT
The NEPOOL Agreement as in effect on December 1, 1996 (the
"Prior NEPOOL Agreement") is amended and restated, as of the effective dates
provided in Section II, to read as provided in Exhibit A hereto (the "Restated
NEPOOL Agreement").
SECTION II
EFFECTIVENESS OF THE THIRTY-THIRD AGREEMENT
This Thirty-Third Agreement, and the amendment and restatement provided
for above, shall become effective as follows:
(1) Parts One, Two, Four and Five, of the Restated NEPOOL Agreement
and all of the provisions of the Tariff shall become effective,
and Sections 1 to 8, inclusive, 10, 11, 13, 14.2, 14.3, 14.4 and
16 of the Prior NEPOOL Agreement shall cease to be in effect, on
March 1, 1997 or on such other date as the Federal Energy
Regulatory Commission ("Commission") shall provide that such
portion of the Restated NEPOOL Agreement shall become effective
(the "First Effective Date"); and
(2) the remaining portions of the Restated NEPOOL Agreement shall
become effective, and Sections 9, 12, 14.1, 14.5, 14.6, 14.7,
14.8 and 15 of the Prior NEPOOL Agreement together with the
related exhibits and supplements to the Prior NEPOOL Agreement
shall cease to be in effect, on July 1, 1997 or such other date
on or before January 1, 1998 as the NEPOOL Management Committee
may fix, after it has determined that the necessary detailed
criteria, rules and standards and computer programs to implement
such remaining portions of the Restated NEPOOL Agreement are in
place, or on such other date or dates as the Federal Energy
Regulatory Commission may fix, on its own or pursuant to the
request of the Management Committee, (the "Second Effective
Date").
SECTION III
INTENT OF AGREEMENT
This Thirty-Third Agreement is intended by the signatories hereto to
effect a comprehensive amendment and restatement of the NEPOOL Agreement and to
provide a regional open access transmission arrangement in accordance with the
Restated NEPOOL Agreement and the Tariff, which is Attachment B to the Restated
NEPOOL Agreement. Subject to the understandings expressed in the balance of
this Section and in Section IV, the signatories agree to support the acceptance
of the Thirty-Third Agreement by the Commission.
Subject to the understandings expressed in Section IV of this
Agreement, in entering into this Thirty-Third Agreement the signatories
expressly condition their commitment on acceptance of this Thirty-Third
Agreement, including the Restated NEPOOL Agreement and the Tariff, by
the Commission and any other regulatory body having jurisdiction without
significant conditions or modifications. If significant conditions are imposed
or significant modifications are required, the signatories reserve the right to
renegotiate the Thirty-Third Agreement as a whole or to terminate it.
SECTION IV
ALTERNATIVE AMENDMENTS
The signatories have been unable to reach final agreement on two
aspects of the transmission arrangements for a restructured NEPOOL which would
be in effect after the five-year Transition Period provided for in the Tariff,
as follows:
(a) the continued treatment of "grandfathered contracts" as Excepted
Transactions; and
(b) the continuance and treatment of Participant Regional Network
Service rates which differ from an average Regional Network
Service rate.
It is agreed that any Participant which signs this Agreement shall be entitled
to take any position before the Commission that it deems best with respect to
either of these two aspects of the transmission arrangements.
However, Participants signing this Agreement are requested to consider
the proposed treatment of these aspects of the transmission arrangements in the
following Alternate A and Alternate B and to indicate, if they are willing, in
the optional supplemental agreement on the signature page to this Agreement
their position on these alternates. The alternates are as follows:
Alternate A is as follows:
1. The introductory portion of paragraph (3) of Section 25 of the
Tariff shall be amended to read as follows:
(3) for the period from the effective date of the Tariff
until the termination of the transmission agreement or
the end of the Transition Period, whichever occurs
first:
2. The description of the "Participant RNS Rate" in Schedule 9 to
the Tariff shall be amended by modifying the proviso at the end of the second
sentence of paragraph (4) of the Schedule to read as follows:
provided that in no event shall its pre-1997 Participant RNS
Rate be less than 70% of the pre-1997 Pool PTF Rate until the
end of Year Five, and thereafter shall be equal to the pre-1997
Pool PTF Rate for Year Six and thereafter.
and by amending the proviso at the end of the third sentence of paragraph (4)
of the Schedule to read as follows:
provided that in no event shall its pre-1997 Participant RNS
Rate be greater than 130% of the pre-1997 Pool PTF Rate until
the end of Year Five, and thereafter shall be equal to the pre-
1997 Pool PTF Rate for Year Six and thereafter.
Alternate B is as follows:
1. The introductory portion of paragraph (3) of Section 25 of the
Tariff shall be amended to read as follows:
(3) for the period from the effective date of this Tariff
until the termination of the transmission agreement:
2. The description of the "Participant RNS Rate"in Schedule 9 to
the Tariff shall be amended by modifying the proviso at the end of the second
sentence of paragraph (4) of the Schedule to read as follows:
provided that in no event shall its pre-1997 Participant RNS
Rate be less than 70% of the pre-1997 Pool PTF Rate until the
end of Year Five, and thereafter shall be no less than 50% of
the pre-1997 Pool PTF Rate for Year Six through Year Ten, and
shall be equal to the pre-1997 Pool PTF Rate for Year Eleven and
thereafter.
and by amending the proviso at the end of the third sentence of paragraph (4)
of the Schedule to read as follows:
provided that in no event shall its pre-1997 Participant RNS
Rate be greater than 130% of the pre-1997 Pool PTF Rate until
the end of Year Five and thereafter shall be no greater than
127% of the pre-1997 Pool PTF Rate for Year Six, 123% of the
pre-1997 Pool PTF Rate for Year Seven, 118% of the pre-1997 Pool
PTF Rate for Year Eight, 112% of the pre-1997 Pool PTF Rate for
Year Nine, 105% of the pre-1997 Pool PTF Rate for Year Ten, and
shall be equal to the pre-1997 Pool PTF Rate for Year Eleven and
thereafter.
SECTION V
USAGE OF DEFINED TERMS
The usage in this Thirty-Third Agreement of terms which are defined in
the Prior NEPOOL Agreement shall be deemed to be in accordance with the
definitions thereof in the Prior NEPOOL Agreement.
SECTION VI
COUNTERPARTS
This Thirty-Third Agreement may be executed in any number of
counterparts and each executed counterpart shall have the same force and effect
as an original instrument and as if all the parties to all the counterparts had
signed the same instrument. Any signature page of this Thirty-Third Agreement
may be detached from any counterpart of this Thirty-Third Agreement without
impairing the legal effect of any signatures thereof, and may be attached to
another counterpart of this Thirty-Third Agreement identical in form thereto
but having attached to it one or more signature pages.
IN WITNESS WHEREOF, each of the signatories has caused a counterpart
signature page to be executed by its duly authorized representative, as of the
1st day of December, 1996.
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
Bangor Hydro-Electric Company
(Participant)
By: /s/ Carroll R. Lee
Name: Carroll R. Lee
Title: Senior Vice President &
Chief Operating Officer
Address: 33 State Street
Bangor, ME 04402-0932
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
Bangor Hydro-Electric Company
(Participant)
By: /s/ Carroll R. Lee
Name: Carroll R. Lee
Title: Senior Vice President &
Chief Operating Officer
Address: 33 State Street
Bangor, ME 04402-0932
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
Boston Edison Company
(Participant)
By: /s/ Douglas S. Horan
Name: Douglas S. Horan
Title: Senior Vice President
Address: 800 Boylston Street
Boston, MA 02199-8001
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
Boston Edison Company
(Participant)
By: /s/ Douglas S. Horan
Name: Douglas S. Horan
Title: Senior Vice President
Address: 800 Boylston Street
Boston, MA 02199-8001
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
Central Maine Power Company
(Participant)
By: /s/ Arthur Adelberg
Name: Arthur Adelberg
Title: VP
Address: 83 Edison Drive
Augusta, ME 04336-0001
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
Central Maine Power Company
(Participant)
By: /s/ Arthur Adelberg
Name: Arthur Adelberg
Title: VP
Address: 83 Edison Drive
Augusta, ME 04336-0001
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
COMMONWEALTH ENERGY SYSTEM COMPANIES
Cambridge Electric Light Company
Canal Electric Company
Commonwealth Electric Company
(Participants)
By: /s/ James J. Keane
Name:
Title:
Address: 2421 Cranberry Highway
Wareham, MA 02571-1002
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
COMMONWEALTH ENERGY SYSTEM COMPANIES
Cambridge Electric Light Company
Canal Electric Company
Commonwealth Electric Company
(Participants)
By: /s/ James J. Keane
Name:
Title:
Address: 2421 Cranberry Highway
Wareham, MA 02571-1002
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
Connecticut Municipal Electric Energy Company
(Participant)
By: /s/ Maurice R. Scully
Name: Maurice R. Scully
Title: Executive Director
Address: 30 Stott Avenue
Norwich, CT 06360-1535
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
Connecticut Municipal Electric Energy Company
(Participant)
By: /s/ Maurice R. Scully
Name: Maurice R. Scully
Title: Executive Director
Address: 30 Stott Avenue
Norwich, CT 06360-1535
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
EASTERN UTILITIES ASSOCIATES COMPANIES
Blackstone Valley Electric Company
Easter Edison Company
Montaup Electric Company
Newport Electric Company
(Participants)
By: /s/ Kevin A. Kirby
Name: Kevin A. Kirby
Title: Vice President
Address: 750 West Center Street
West Bridgewater, MA 02379-0543
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
EASTERN UTILITIES ASSOCIATES COMPANIES
Blackstone Valley Electric Company
Easter Edison Company
Montaup Electric Company
Newport Electric Company
(Participants)
By: /s/ Kevin A. Kirby
Name: Kevin A. Kirby
Title: Vice President
Address: 750 West Center Street
West Bridgewater, MA 02379-0543
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
Houlton Water Company
(Participant)
By: /s/ John L. Clark
Name: John L. Clark
Title: General Manager
Address: 21 Bangor Street
Houlton, ME 04730
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
Houlton Water Company
(Participant)
By: /s/ John L. Clark
Name: John L. Clark
Title: General Manager
Address: 21 Bangor Street
Houlton, ME 04730
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
Fitchburg Gas and Electric Light Company
(Participant)
By: /s/ David K. Foote
Name: David K. Foote
Title: Senior Vice President
Address: 6 Liberty Lane West
Hampton, NH 03842-1720
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
Fitchburg Gas and Electric Light Company
(Participant)
By: /s/ David K. Foote
Name: David K. Foote
Title: Senior Vice President
Address: 6 Liberty Lane West
Hampton, NH 03842-1720
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
KCS Power Marketing, Inc.
(Participant)
By: /s/ Thomas F. Withka
Name: Thomas F. Withka
Title: President
Address: 379 Thornall Street
Edison, NJ 08837
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
KCS Power Marketing, Inc.
(Participant)
By: /s/ Thomas F. Withka
Name: Thomas F. Withka
Title: President
Address: 379 Thornall Street
Edison, NJ 08837
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
GRANITE STATE ELECTRIC COMPANY
(Participant)
By: /s/ Richard P. Seigel
Name:
Title: Chairman
Address: 407 Miracle Mile, Suite 1
Lebanon, NH
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
GRANITE STATE ELECTRIC COMPANY
(Participant)
By: /s/ Richard P. Seigel
Name:
Title: Chairman
Address: 407 Miracle Mile, Suite 1
Lebanon, NH
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
MASSACHUSETTS ELECTRIC COMPANY
(Participant)
By: /s/ Lawrence J. Reilly
Name: Lawrence J. Reilly
Title: President
Address: 25 Research Dr.
Westborough, MA 01582
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
MASSACHUSETTS ELECTRIC COMPANY
(Participant)
By: /s/ Lawrence J. Reilly
Name: Lawrence J. Reilly
Title: President
Address: 25 Research Dr.
Westborough, MA 01582
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
THE NARRAGANSETT ELECTRIC COMPANY
(Participant)
By: /s/ Richard P. Seigel
Name:
Title: Chairman
Address: 28 Melrose Street
Providence, RI
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
THE NARRAGANSETT ELECTRIC COMPANY
(Participant)
By: /s/ Richard P. Seigel
Name:
Title: Chairman
Address: 28 Melrose Street
Providence, RI
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
NEW ENGLAND POWER COMPANY
(Participant)
By: /s/ Jeffrey D. Tranen
Name:
Title: President
Address: 25 Research Drive
Westborough, MA
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
NEW ENGLAND POWER COMPANY
(Participant)
By: /s/ Jeffrey D. Tranen
Name:
Title: President
Address: 25 Research Drive
Westborough, MA
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
NORTHEAST UTILITIES SYSTEM COMPANIES
The Connecticut Light and Power Company
Holyoke Power and Electric Company
Holyoke Water Power Company
Public Service Company of New Hampshire
Western Massachusetts Electric Company
(Participants)
By: /s/ Frank P. Sabatino
Name: Frank P. Sabatino
Title: Vice President -
Wholesale Marketing
Address: 107 Selden Street
Berlin, CT 06037-1616
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
NORTHEAST UTILITIES SYSTEM COMPANIES
The Connecticut Light and Power Company
Holyoke Power and Electric Company
Holyoke Water Power Company
Public Service Company of New Hampshire
Western Massachusetts Electric Company
(Participants)
By: /s/ Frank P. Sabatino
Name: Frank P. Sabatino
Title: Vice President -
Wholesale Marketing
Address: 107 Selden Street
Berlin, CT 06037-1616
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
UNITIL CORPORATION PARTICIPANT COMPANIES
Concord Electric Company
Exeter & Hampton Electric Company
UNITIL Power Corp.
(Participants)
By: /s/ James G. Daly
Name: James G. Daly
Title: President, Unitil Power Corp.
Address: 6 Liberty Lane West
Hampton, NH 03842-1720
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
UNITIL CORPORATION PARTICIPANT COMPANIES
Concord Electric Company
Exeter & Hampton Electric Company
UNITIL Power Corp.
(Participants)
By: /s/ James G. Daly
Name: James G. Daly
Title: President, Unitil Power Corp.
Address: 6 Liberty Lane West
Hampton, NH 03842-1720
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
The United Illuminating Company
(Participant)
By: /s/ James F. Crowe
Name: James F. Crowe
Title: Group V.P.
Address: 157 Church Street
New Haven, CT 06506-0901
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
The United Illuminating Company
(Participant)
By: /s/ James F. Crowe
Name: James F. Crowe
Title: Group V.P.
Address: 157 Church Street
New Haven, CT 06506-0901
COUNTERPART SIGNATURE PAGE
TO THIRTY-THIRD AGREEMENT AMENDING
NEW ENGLAND POWER POOL AGREEMENT
DATED AS OF DECEMBER 1, 1996
The NEPOOL Agreement, being dated as of September 1, 1971, and being
previously amended by thirty (30) amendments the most recent of which was dated
as of September 1,1995.
VERMONT UTILITIES
City of Burlington Electric Department
Central Vermont Public Service Corporation
Citizens Utilities Company
Green Mountain Power Corporation
Rochester Electric Light & Power Company
Vermont Electric Power Company, Inc.
Vermont Marble Company
(Participants)
By: Vermont Electric Power Company, Inc.
By: /s/ Richard M. Chapman
Name: Richard M. Chapman
Title: President and
Chief Executive Officer
Address: Pinnacle Ridge Avenue
Rutland, VT 05701
SUPPLEMENTAL AGREEMENT WITH RESPECT TO ALTERNATES A & B
The undersigned agrees that either Alternate A or Alternate B as
described in Section IV of the foregoing Agreement will be acceptable to it if
chosen and accepted by the Commission without significant modifications.
Accordingly, the undersigned further agrees that in the event either Alternate
A or Alternate B, as described in Section IV of the foregoing Agreement, is
chosen and accepted without significant modifications by the Commission, the
Tariff shall be deemed to be automatically amended, effective 30 days after the
issuance of the Commission's order, to incorporate the accepted Alternate.
VERMONT UTILITIES
Central Vermont Public Service Corporation
Citizens Utilities Company
Green Mountain Power Corporation
Rochester Electric Light & Power Company
Vermont Electric Power Company, Inc.
Vermont Marble Company
(Participants)
By: Vermont Electric Power Company, Inc.
By: /s/ Richard M. Chapman
Name: Richard M. Chapman
Title: President and
Chief Executive Officer
Address: Pinnacle Ridge Avenue
Rutland, VT 05701
EXHIBIT A
RESTATED
NEW ENGLAND
POWER POOL AGREEMENT
TABLE OF CONTENTS
PART ONE - INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . ...1
SECTION 1- DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . ...1
1.1 Adjusted Annual Peak . . . . . . . . . . . . . . . . . . . .1
1.2 Adjusted Load. . . . . . . . . . . . . . . . . . . . . . . .2
1.3 Adjusted Monthly Peak. . . . . . . . . . . . . . . . . . ...2
1.4 Adjusted Net Interchange . . . . . . . . . . . . . . . . ...3
1.5 AGC Capability . . . . . . . . . . . . . . . . . . . . . ...3
1.6 AGC Entitlement. . . . . . . . . . . . . . . . . . . . . ...4
1.7 Agreement. . . . . . . . . . . . . . . . . . . . . . . . ...4
1.8 Annual Peak. . . . . . . . . . . . . . . . . . . . . . . ...4
1.9 Automatic Generation Control or AGC. . . . . . . . . . . ...4
1.10 Bid Price. . . . . . . . . . . . . . . . . . . . . . . . ...5
1.11 Commission . . . . . . . . . . . . . . . . . . . . . . . ...6
1.12 Dispatch Price . . . . . . . . . . . . . . . . . . . . . ...6
1.13 EHV PTF. . . . . . . . . . . . . . . . . . . . . . . . . ...6
1.14 Electrical Load. . . . . . . . . . . . . . . . . . . . . ...6
1.15 Energy . . . . . . . . . . . . . . . . . . . . . . . . . ...8
1.16 Energy Entitlement . . . . . . . . . . . . . . . . . . . ...8
1.17 Entitlement. . . . . . . . . . . . . . . . . . . . . . . ...8
1.18 Entity . . . . . . . . . . . . . . . . . . . . . . . . . ...9
1.19 Executive Committee. . . . . . . . . . . . . . . . . . . ...9
1.20 Firm Contract. . . . . . . . . . . . . . . . . . . . . . ...9
1.21 First Effective Date . . . . . . . . . . . . . . . . . . ..10
1.22 Good Utility Practice. . . . . . . . . . . . . . . . . . ..10
1.23 HQ Contracts . . . . . . . . . . . . . . . . . . . . . . ..10
1.24 HQ Energy Banking Agreement. . . . . . . . . . . . . . . ..11
1.25 HQ Interconnection . . . . . . . . . . . . . . . . . . . ..11
1.26 HQ Interconnection Agreement . . . . . . . . . . . . . . ..12
1.27 HQ Interconnection Capability Credit . . . . . . . . . . ..12
1.28 HQ Interconnection Transfer Capability . . . . . . . . . ..12
1.29 HQ Net Interconnection Capability Credit . . . . . . . . ..13
1.30 HQ Phase I Energy Contract . . . . . . . . . . . . . . . ..13
1.31 HQ Phase I Percentage. . . . . . . . . . . . . . . . . . ..14
1.32 HQ Phase I Transfer Credit . . . . . . . . . . . . . . . ..14
1.33 HQ Phase II Firm Energy Contrac. . . . . . . . . . . . ....14
1.34 HQ Phase II Gross Transfer Responsibility. . . . . . . . ..14
1.35 HQ Phase II Net Transfer Responsibility. . . . . . . . . ..15
1.36 HQ Phase II Percentage . . . . . . . . . . . . . . . . . ..15
1.37 HQ Phase II Transfer Credit. . . . . . . . . . . . . . . ..15
1.38 HQ Use Agreement . . . . . . . . . . . . . . . . . . . . ..16
1.39 Installed Capability . . . . . . . . . . . . . . . . . . ..16
1.40 Installed Capability Entitlement . . . . . . . . . . . . ..16
1.41 Installed Capability Responsibility. . . . . . . . . . . ..17
1.42 Installed System Capability. . . . . . . . . . . . . . . ..17
1.43 Interchange Transactions . . . . . . . . . . . . . . . . ..17
1.44 ISO. . . . . . . . . . . . . . . . . . . . . . . . . . . ..17
1.45 Kilowatt . . . . . . . . . . . . . . . . . . . . . . . . ..17
1.46 Load . . . . . . . . . . . . . . . . . . . . . . . . . . ..18
1.47 Lower Voltage PTF. . . . . . . . . . . . . . . . . . . . ..19
1.48 Management Committee . . . . . . . . . . . . . . . . . . ..19
1.49 Market Reliability Planning Committee. . . . . . . . . . ..19
1.50 Monthly Peak . . . . . . . . . . . . . . . . . . . . . . ..20
1.51 NEPOOL . . . . . . . . . . . . . . . . . . . . . . . . . ..20
1.52 NEPOOL Installed Capability Responsibility . . . . . . . ..20
1.53 NEPOOL Control Area. . . . . . . . . . . . . . . . . . . ..20
1.54 NEPOOL Installed Capability. . . . . . . . . . . . . . . ..21
1.55 NEPOOL Objective Capability. . . . . . . . . . . . . . . ..21
1.56 New Unit . . . . . . . . . . . . . . . . . . . . . . . . ..22
1.57 Non-Participant. . . . . . . . . . . . . . . . . . . . . ..22
1.58 Operable Capability. . . . . . . . . . . . . . . . . . . ..22
1.59 Operable Capability Entitlement. . . . . . . . . . . . . ..23
1.60 Operable Capability Requirement. . . . . . . . . . . . . ..23
1.61 Operable System Capability . . . . . . . . . . . . . . . ..24
1.62 Operating Reserve. . . . . . . . . . . . . . . . . . . . ..24
1.63 Operating Reserve Entitlement. . . . . . . . . . . . . . ..24
1.64 Other HQ Energy. . . . . . . . . . . . . . . . . . . . . ..25
1.65 Outside Transaction Adjustme . . . . . . ..................25
1.66 Participant. . . . . . . . . . . . . . . . . . . . . . . ..25
1.67 Pool-Planned Facility. . . . . . . . . . . . . . . . . . ..25
1.68 Pool-Planned Unit. . . . . . . . . . . . . . . . . . . . ..25
1.69 Power Year . . . . . . . . . . . . . . . . . . . . . . . ..26
1.70 Prior NEPOOL Agreement . . . . . . . . . . . . . . . . . ..26
1.71 Proxy Unit . . . . . . . . . . . . . . . . . . . . . . . ..26
1.72 PTF. . . . . . . . . . . . . . . . . . . . . . . . . . . ..26
1.73 Regional Market Operations Committee . . . . . . . . . . ..27
1.74 Regional Transmission Operations Committee . . . . . . . ..27
1.75 Regional Transmission Planning Committee . . . . . . . . ..27
1.76 Related Person . . . . . . . . . . . . . . . . . . . . . ..27
1.77 Scheduled Dispatch Period. . . . . . . . . . . . . . . . ..28
1.78 Second Effective Date. . . . . . . . . . . . . . . . . . ..28
1.79 Summer Capability. . . . . . . . . . . . . . . . . . . . ..28
1.80 Summer Period. . . . . . . . . . . . . . . . . . . . . . ..28
1.81 System Contract. . . . . . . . . . . . . . . . . . . . . ..29
1.82 System Operator. . . . . . . . . . . . . . . . . . . . . ..29
1.83 Target Availability Rate . . . . . . . . . . . . . . . . ..29
1.84 Tariff . . . . . . . . . . . . . . . . . . . . . . . . . ..29
1.85 Third Effective Date . . . . . . . . . . . . . . . . . . ..30
1.86 Unit Contract. . . . . . . . . . . . . . . . . . . . . . ..30
1.87 Voting Share . . . . . . . . . . . . . . . . . . . . . . ..30
1.88 Winter Capability. . . . . . . . . . . . . . . . . . . . ..30
1.89 Winter Period. . . . . . . . . . . . . . . . . . . . . . ..31
1.90 10-Minute Spinning Reserve . . . . . . . . . . . . . . . ..31
1.91 10-Minute Non-Spinning Reserve . . . . . . . . . . . . . ..32
1.92 30-Minute Operating Reserve. . . . . . . . . . . . . . . ..33
1.93 33rd Amendment . . . . . . . . . . . . . . . . . . . . . ..34
1.94 Modification of Certain Definitions When a Participant
Purchases a Portion of Its Requirements from Another
Participant Pursuant to Firm Contract. . . . . . . . . . ..34
SECTION 2 - PURPOSE; EFFECTIVE DATES . . . . . . . . . . . . . . . . . . ..37
2.1 Purpose. . . . . . . . . . . . . . . . . . . . . . . . . ..37
2.2 Effective Dates; Transitional Provisions . . . . . . . . ..37
SECTION 3 - MEMBERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . ..39
3.1 Membership . . . . . . . . . . . . . . . . . . . . . . . ..39
3.2 Operations Outside the Control Area. . . . . . . . . . . ..40
3.3 Lack of Place of Business in New England . . . . . . . . ..41
3.4 Obligation for Deferred Expenses . . . . . . . . . . . . ..41
3.5 Financial Security . . . . . . . . . . . . . . . . . . . ..42
SECTION 4 - STATUS OF PARTICIPANTS . . . . . . . . . . . . . . . . . . . ..43
4.1 Treatment of Certain Entities as Single Participant. . . ..43
4.2 Participants to Retain Separate Identities . . . . . . . ..43
SECTION 5 - NEPOOL OBJECTIVES AND COOPERATION BY PARTICIPANTS. . . . . . ..44
5.1 NEPOOL Objectives. . . . . . . . . . . . . . . . . . . . ..44
5.2 Cooperation by Participants. . . . . . . . . . . . . . . ..45
PART TWO - GOVERNANCE. . . . . . . . . . . . . . . . . . . . . . . . . . ..47
SECTION 6 - MANAGEMENT COMMITTEE . . . . . . . . . . . . . . . . . . . . ..47
6.1 Membership . . . . . . . . . . . . . . . . . . . . . . . ..47
6.2 Term of Members. . . . . . . . . . . . . . . . . . . . . ..48
6.3 Votes. . . . . . . . . . . . . . . . . . . . . . . . . . ..48
6.4 Number of Votes Necessary for Action . . . . . . . . . . ..57
6.5 Proxies. . . . . . . . . . . . . . . . . . . . . . . . . ..57
6.6 Alternates . . . . . . . . . . . . . . . . . . . . . . . ..57
6.7 Officers . . . . . . . . . . . . . . . . . . . . . . . . ..58
6.8 Meetings . . . . . . . . . . . . . . . . . . . . . . . . ..58
6.9 Notice of Meetings . . . . . . . . . . . . . . . . . . . ..58
6.10 Adoption of Budgets. . . . . . . . . . . . . . . . . . . ..59
6.11 Adoption of Bylaws . . . . . . . . . . . . . . . . . . . ..59
6.12 Establishing Reliability Standards . . . . . . . . . . . ..59
6.13 Appointment and Compensation of NEPOOL Personnel . . . . ..60
6.14 Duties and Authority . . . . . . . . . . . . . . . . . . ..60
6.15 Attendance of Members of Management Committee at Other
Committee Meetings . . . . . . . . . . . . . . . . . . . ..65
SECTION 7- EXECUTIVE COMMITTEE . . . . . . . . . . . . . . . . . . . . . ..66
7.1 Organization . . . . . . . . . . . . . . . . . . . . . . ..66
7.2 Membership . . . . . . . . . . . . . . . . . . . . . . . ..67
7.3 Term of Members. . . . . . . . . . . . . . . . . . . . . ..69
7.4 Alternates . . . . . . . . . . . . . . . . . . . . . . . ..69
7.5 Votes. . . . . . . . . . . . . . . . . . . . . . . . . . ..70
7.6 Number of Votes Necessary for Action . . . . . . . . . . ..71
7.7 Officers . . . . . . . . . . . . . . . . . . . . . . . . ..71
7.8 Meetings . . . . . . . . . . . . . . . . . . . . . . . . ..71
7.9 Notice of Meetings . . . . . . . . . . . . . . . . . . . ..72
7.10 Notice to Members of Management Committee of Actions by
Executive Committee. . . . . . . . . . . . . . . . . . . ..72
7.11 Appeal of Actions to Management Committee. . . . . . . . ..73
SECTION 8 - MARKET RELIABILITY PLANNING COMMITTEE. . . . . . . . . . . . ..73
8.1 Organization . . . . . . . . . . . . . . . . . . . . . . ..73
8.2 Membership . . . . . . . . . . . . . . . . . . . . . . . ..74
8.3 Term of Members. . . . . . . . . . . . . . . . . . . . . ..76
8.4 Voting . . . . . . . . . . . . . . . . . . . . . . . . . ..76
8.5 Alternates . . . . . . . . . . . . . . . . . . . . . . . ..77
8.6 Officers . . . . . . . . . . . . . . . . . . . . . . . . ..78
8.7 Meetings . . . . . . . . . . . . . . . . . . . . . . . . ..78
8.8 Notice of Meetings . . . . . . . . . . . . . . . . . . . ..78
8.9 Notice to Members of Management Committee. . . . . . . . ..79
8.10 Appeal of Actions to Management Committee. . . . . . . . ..79
8.11 Responsibilities . . . . . . . . . . . . . . . . . . . . ..80
8.12 Functional Planning Committees . . . . . . . . . . . . . ..82
8.13 Appointment of Task Forces . . . . . . . . . . . . . . . ..83
8.14 Consultants, Computer Time and Expenses. . . . . . . . . ..84
8.15 Further Powers and Duties. . . . . . . . . . . . . . . . ..84
8.16 Reports to Management Committee. . . . . . . . . . . . . ..84
8.17 Joint Meetings With Regional Transmission Planning
Committee. . . . . . . . . . . . . . . . . . . . . . . . ..85
SECTION 9 - REGIONAL TRANSMISSION PLANNING COMMITTEE . . . . . . . . . . ..85
9.1 Organization . . . . . . . . . . . . . . . . . . . . . . ..85
9.2 Membership . . . . . . . . . . . . . . . . . . . . . . . ..85
9.3 Term of Members. . . . . . . . . . . . . . . . . . . . . ..88
9.4 Voting . . . . . . . . . . . . . . . . . . . . . . . . . ..88
9.5 Alternates . . . . . . . . . . . . . . . . . . . . . . . ..89
9.6 Officers . . . . . . . . . . . . . . . . . . . . . . . . ..90
9.7 Meetings . . . . . . . . . . . . . . . . . . . . . . . . ..90
9.8 Notice of Meetings . . . . . . . . . . . . . . . . . . . ..91
9.9 Notice to Members of Management Committee. . . . . . . . ..91
9.10 Appeal of Actions to Management Committee. . . . . . . . ..91
9.11 Responsibilities . . . . . . . . . . . . . . . . . . . . ..92
9.12 Functional Planning Committees . . . . . . . . . . . . . ..93
9.13 Appointment of Task Forces . . . . . . . . . . . . . . . ..95
9.14 Consultants, Computer Time and Expenses. . . . . . . . . ..95
9.15 Further Powers and Duties. . . . . . . . . . . . . . . . ..96
9.16 Reports to Management Committee. . . . . . . . . . . . . ..96
9.17 Joint Meetings With Market Reliability Planning Committee..96
SECTION 10 - REGIONAL MARKET OPERATIONS COMMITTEE. . . . . . . . . . . . ..97
10.1 Organization . . . . . . . . . . . . . . . . . . . . . . ..97
10.2 Membership . . . . . . . . . . . . . . . . . . . . . . . ..97
10.3 Terms of Members . . . . . . . . . . . . . . . . . . . . ..99
10.4 Voting . . . . . . . . . . . . . . . . . . . . . . . . . .100
10.5 Alternates . . . . . . . . . . . . . . . . . . . . . . . .101
10.6 Officers . . . . . . . . . . . . . . . . . . . . . . . . .101
10.7 Meetings . . . . . . . . . . . . . . . . . . . . . . . . .102
10.8 Notice of Meetings . . . . . . . . . . . . . . . . . . . .102
10.9 Notice to Members of Management Committee. . . . . . . . .103
10.10 Appeal of Actions to Management Committee. . . . . . . . .103
10.11 Appointment of Task Forces . . . . . . . . . . . . . . . .104
10.12 Consultants, Computer Time and Expenses. . . . . . . . . .104
10.13 Responsibilities . . . . . . . . . . . . . . . . . . . . .104
10.14 Further Powers and Duties. . . . . . . . . . . . . . . . .108
10.15 Development of Rules Relating to Non-Participant Supply
and Demand-side Resources. . . . . . . . . . . . . . . . .108
10.16 Joint Meetings with Regional Transmission Operations
Committee. . . . . . . . . . . . . . . . . . . . . . . . .108
SECTION 11 - REGIONAL TRANSMISSION OPERATIONS COMMITTEE. . . . . . . . . .109
11.1 Organization . . . . . . . . . . . . . . . . . . . . . . .109
11.2 Membership . . . . . . . . . . . . . . . . . . . . . . . .109
11.3 Terms of Members . . . . . . . . . . . . . . . . . . . . .111
11.4 Voting . . . . . . . . . . . . . . . . . . . . . . . . . .112
11.5 Alternates . . . . . . . . . . . . . . . . . . . . . . . .113
11.6 Officers . . . . . . . . . . . . . . . . . . . . . . . . .113
11.7 Meetings . . . . . . . . . . . . . . . . . . . . . . . . .114
11.8 Notice of Meetings . . . . . . . . . . . . . . . . . . . .114
11.9 Notice to Members of Management Committee. . . . . . . . .115
11.10 Appeal of Actions to Management Committee. . . . . . . . .115
11.11 Appointment of Task Forces . . . . . . . . . . . . . . . .116
11.12 Consultants, Computer Time and Expenses. . . . . . . . . .116
11.13 Responsibilities . . . . . . . . . . . . . . . . . . . . .116
11.14 Further Powers and Duties. . . . . . . . . . . . . . . . .118
11.15 Joint Meetings with Regional Market Operations Committee .118
PART THREE - MARKET PROVISIONS . . . . . . . . . . . . . . . . . . . . . .119
SECTION 12 - INSTALLED CAPABILITY AND OPERABLE CAPABILITY OBLIGATIONS
AND PAYMENTS. . . . . . . . . . . . . . . . . . . . . . . . .119
12.1 Obligations to Provide Installed Capability and
Operable Capability. . . . . . . . . . . . . . . . . . . .119
12.2 Computation of Installed Capability Responsibilities . . .120
12.3 Computation of Operable Capability Requirements. . . . . .140
12.4 Bids to Furnish Installed Capability or Operable
Capability . . . . . . . . . . . . . . . . . . . . . . . .141
12.5 Consequences of Deficiencies in Installed Capability
Responsibility . . . . . . . . . . . . . . . . . . . . . .142
12.6 Consequences of Deficiencies in Operable Capability
Requirements . . . . . . . . . . . . . . . . . . . . . . .144
12.7 Payments to Participants Furnishing Installed Capability
and Operable Capability . . . . . . . . . . . . . . . . .146
SECTION 13 - OPERATION, GENERATION, OTHER RESOURCES,AND INTERRUPTIBLE
CONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . .148
13.1 Maintenance and Operation in Accordance with Good
Utility Practice . . . . . . . . . . . . . . . . . . . . .148
13.2 Central Dispatch . . . . . . . . . . . . . . . . . . . . .148
13.3 Maintenance and Repair . . . . . . . . . . . . . . . . . .149
13.4 Objectives of Day-to-Day System Operation. . . . . . . . .149
13.5 Satellite Membership . . . . . . . . . . . . . . . . . . .150
SECTION 14 - INTERCHANGE TRANSACTIONS. . . . . . . . . . . . . . . . . . .151
14.1 Obligation for Energy, Operating Reserve and Automatic
Generation Control . . . . . . . . . . . . . . . . . . . .151
14.2 Obligation to Bid or Schedule, and Right to Receive
Energy, Operating Reserve and Automatic Generation
Control. . . . . . . . . . . . . . . . . . . . . . . . . .154
14.3 Amount of Energy, Operating Reserve and Automatic
Generation Control Received or Furnished . . . . . . . . .161
14.4 Payments by Participants Receiving Energy Service,
Operating Reserve and Automatic Generation Control . . . .163
14.5 Payments to Participants Furnishing Energy Service,
Operating Reserve, and Automatic Generation Control. . . .165
14.6 Energy Transactions with Non-Participants. . . . . . . . .167
14.7 Participant Purchases Pursuant to Firm Contracts and
System Contracts . . . . . . . . . . . . . . . . . . . . .169
14.8 Determination of Energy Clearing Price . . . . . . . . . .170
14.9 Determination of Operating Reserve Selling Price and
Clearing Price . . . . . . . . . . . . . . . . . . . . . .171
14.10 Determination of AGC Clearing Price. . . . . . . . . . . .175
14.11 Funds to or from which Payments are to be Made . . . . . .176
14.12 Development of Rules Relating to Nuclear and
Hydroelectric Generating Facilities, Limited-Fuel
Generating Facilities, and Interruptible Loads . . . . . .183
14.13 Dispatch and Billing Rules During Energy Shortages . . . .184
14.14 Congestion Uplift. . . . . . . . . . . . . . . . . . . . .185
14.15 Additional Uplift Charges. . . . . . . . . . . . . . . . .187
PART FOUR - TRANSMISSION PROVISIONS. . . . . . . . . . . . . . . . . . . .187
SECTION 15 - OPERATION OF TRANSMISSION FACILITIES. . . . . . . . . . . . .187
15.1 Definition of PTF. . . . . . . . . . . . . . . . . . . . .187
15.2 Maintenance and Operation in Accordance with Good
Utility Practice . . . . . . . . . . . . . . . . . . . . .190
15.3 Central Dispatch . . . . . . . . . . . . . . . . . . . . .191
15.4 Maintenance and Repair . . . . . . . . . . . . . . . . . .191
15.5 Additions to or Upgrades of PTF. . . . . . . . . . . . . .192
SECTION 16 - SERVICE UNDER TARIFF. . . . . . . . . . . . . . . . . . . . .195
16.1 Effect of Tariff . . . . . . . . . . . . . . . . . . . . .195
16.2 Obligation to Provide Regional Service . . . . . . . . . .196
16.3 Obligation to Provide Local Network Service. . . . . . . .196
16.4 Transmission Service Availability. . . . . . . . . . . . .199
16.5 Transmission Information . . . . . . . . . . . . . . . . .199
16.6 Distribution of Transmission Revenues. . . . . . . . . . .200
16.7 Changes to Tariff. . . . . . . . . . . . . . . . . . . . .203
SECTION 17 - POOL-PLANNED UNIT SERVICE . . . . . . . . . . . . . . . . . .204
17.1 Effective Period . . . . . . . . . . . . . . . . . . . . .204
17.2 Obligation to Provide Service. . . . . . . . . . . . . . .205
17.3 Rules for Determination of Facilities Covered by
Particular Transactions. . . . . . . . . . . . . . . . . .206
17.4 Payments for Uses of EHV PTF During the Transition Period.207
17.5 Payments for Uses of Lower Voltage PTF . . . . . . . . . .211
17.6 Use of Other Transmission Facilities by Participants . . .212
17.7 Limits on Individual Transmission Charges. . . . . . . . .212
PART FIVE - GENERAL. . . . . . . . . . . . . . . . . . . . . . . . . . . .213
SECTION 18 - GENERATION AND TRANSMISSION FACILITIES. . . . . . . . . . . .213
18.1 Designation of Pool-Planned Facilities . . . . . . . . . .213
18.2 Construction of Facilities . . . . . . . . . . . . . . . .214
18.3 Protective Devices for Transmission Facilities and
Automatic Generation Control Equipment . . . . . . . . . .214
18.4 Review of Participant's Proposed Plans . . . . . . . . . .215
18.5 Participant to Avoid Adverse Effect. . . . . . . . . . . .216
SECTION 19 - EXPENSES. . . . . . . . . . . . . . . . . . . . . . . . . . .217
19.1 Annual Fee . . . . . . . . . . . . . . . . . . . . . . . .217
19.2 NEPOOL Expenses. . . . . . . . . . . . . . . . . . . . . .218
SECTION 20 - INDEPENDENT SYSTEM OPERATOR . . . . . . . . . . . . . . . . .219
SECTION 21 - MISCELLANEOUS PROVISIONS. . . . . . . . . . . . . . . . . . .224
21.1 Alternative Dispute Resolution . . . . . . . . . . . . . .224
21.2 Payment of Pool Charges; Termination of Status as
Participant. . . . . . . . . . . . . . . . . . . . . . . .237
21.3 Assignment . . . . . . . . . . . . . . . . . . . . . . . .240
21.4 Force Majeure. . . . . . . . . . . . . . . . . . . . . . .241
21.5 Waiver of Defaults . . . . . . . . . . . . . . . . . . . .241
21.6 Other Contracts. . . . . . . . . . . . . . . . . . . . . .242
21.7 Liability and Insurance. . . . . . . . . . . . . . . . . .242
21.8 Records and Information. . . . . . . . . . . . . . . . . .244
21.9 Consistency with NPCC and NERC Standards . . . . . . . . .244
21.10 Construction . . . . . . . . . . . . . . . . . . . . . . .244
21.11 Amendment. . . . . . . . . . . . . . . . . . . . . . . . .245
21.12 Termination. . . . . . . . . . . . . . . . . . . . . . . .247
21.13 Notices to Participants. . . . . . . . . . . . . . . . . .247
21.14 Severability and Renegotiation . . . . . . . . . . . . . .249
21.15 No Third-Party Beneficiaries . . . . . . . . . . . . . . .249
21.16 Counterparts . . . . . . . . . . . . . . . . . . . . . . .250
RESTATED NEPOOL POWER POOL AGREEMENT
THIS AGREEMENT dated as of the first day of September, 1971, as amended, was
entered into by the signatories thereto for the establishment by them of a bulk
power pool to be known as NEPOOL and is restated by an amendment dated as of
December 1, 1996.
In consideration of the mutual agreements and undertakings herein, the
signatories hereby agree as follows:
PART ONE
INTRODUCTION
SECTION 1
DEFINITIONS
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 1.94):
1.1 Adjusted Annual Peak of a Participant for any twelve-month period is
the maximum Adjusted Load of the Participant during any hour during the
period. If, during such period, there has been a transfer, in whole or
part, of the responsibility (whether as a direct retail supplier or as
an indirect wholesale supplier pursuant to a Firm Contract) for
supplying the electric requirements of any retail customers from (or
to) such Participant to (or from) another Participant, the Adjusted
Annual Peak of each such Participant shall be reconstituted to reflect
the effect of such transfer, but a Participant's Adjusted Annual Peak
shall not be reconstituted to reflect the effect of any other
transaction.
1.2 Adjusted Load * (not less than zero) of a Participant during any
particular hour is the Participant's Load during such hour less any
Kilowatts received (or Kilowatts which would have been received except
for the application of Section 14.7(b)) by such Participant pursuant to
a Firm Contract.
1.3 Adjusted Monthly Peak of a Participant for a month is its Monthly Peak,
provided that, if there has been a transfer, in whole or part, of the
wholesale responsibilities under this Agreement during such month
pursuant to a Firm Contract, the Adjusted Monthly Peak of each such
Participant shall be reconstituted to reflect the effect of such
transaction, but the Adjusted Monthly Peak of a Participant shall not
be reconstituted to reflect the effect of any other transaction.
1.4 Adjusted Net Interchange of a Participant for an hour is (a) the
Kilowatts produced by or delivered to the Participant from its Energy
Entitlements or pursuant to arrangements entered into under Section
14.6, as adjusted in accordance with uniform market operation rules
approved by the Regional Market Operations Committee to take account
of losses, as appropriate, minus (b) the sum of (i) the Electrical Load
of the Participant for the hour, and (ii) the kilowatthours delivered
by such Participant to other Participants pursuant to Firm Contracts or
System Contracts, in accordance with the treatment agreed to pursuant
to Section 14.7(a), together with any associated electrical losses.
1.5 AGC Capability of an electric generating unit or combination of units
is the maximum dependable ability of the unit or units to increase or
decrease the level of output within a time frame specified by market
operation rules approved by the Regional Market Operations Committee,
in response to a remote direction from the System Operator in
order to maintain currently proper power flows into and out of the
NEPOOL Control Area and to control frequency.
1.6 AGC Entitlement is (a) the right to all or a portion of the AGC
Capability of a generating unit or combination of units to which an
Entity is entitled as an owner (either sole or in common) or as a
purchaser, reduced by (b) any portion thereof which such Entity is
selling pursuant to a Unit Contract, and (c) further reduced or
increased, as appropriate, to recognize rights to receive or
obligations to supply AGC pursuant to Firm Contracts or System
Contracts in accordance with Section 14.7(a). An AGC Entitlement in a
generating unit or units may, but need not, be combined with any other
Entitlements relating to such generating unit or units and may be
transferred separately from the related Installed Capability
Entitlement, Operable Capability Entitlement, Energy Entitlement, or
Operating Reserve Entitlements.
1.7 Agreement is this restated contract and attachments, including the
Tariff, as amended and restated from time to time.
1.8 Annual Peak of a Participant for any twelve-month period is the maximum
Load of the Participant during any hour during the period.
1.9 Automatic Generation Control or AGC is a measure of the ability of a
generating unit or portion thereof to respond automatically within a
specified time to a remote direction from the System Operator to
increase or decrease the level of output in order to control
frequency and to maintain currently proper power flows into and out of
the NEPOOL Control Area.
1.10 Bid Price is the amount which a Participant offers to accept, in a
notice furnished to the System Operator by it or on its behalf in
accordance with the market operation rules approved by the Regional
Market Operations Committee, as compensation for (i) furnishing
Installed Capability or Operable Capability to other Participants
pursuant to this Agreement, or (ii) preparing the start up or starting
up or increasing the level of operation of, and thereafter operating, a
generating unit or units to provide Energy to other Participants
pursuant to this Agreement, or (iii) having a unit or units available
to provide Operating Reserve to other Participants pursuant to this
Agreement, or (iv) having a unit or units available to provide AGC to
other Participants pursuant to this Agreement, or (v) providing to
other Participants Installed Capability, Operable Capability, Energy,
Operating Reserve and/or AGC pursuant to a Firm Contract or System
Contract in accordance with Section 14.7(a).
1.11 Commission is the Federal Energy Regulatory Commission or any
regulatory agency succeeding to substantially all of the authority of
the Federal Energy Regulatory Commission with respect to electric
service.
1.12 Dispatch Price of a generating unit or group of units, or a Firm
Contract or System Contract permitted to be bid to supply Energy in
accordance with Section 14.7(b), is the price to provide Energy from
the unit or units or Contracts, as determined pursuant to market
operation rules approved by the Regional Market Operations Committee to
incorporate the Bid Price for such Energy and any loss adjustments, if
and as appropriate under such market operation rules.
1.13 EHV PTF are PTF transmission lines which are operated at 230 kV or
above and related PTF facilities, including transformers which link
other EHV PTF facilities, but do not include transformers which step
down from 230 kV or a higher voltage to a voltage below 230 kV.
1.14 Electrical Load (in Kilowatts) of a Participant during any particular
hour is the total during such hour (eliminating any distortion arising
out of (i) Interchange Transactions, or (ii) transactions across the
system of such Participant, or (iii) other electrical losses,
if and as appropriate), of
(a) kilowatthours delivered by such Participant to its
retail customers for consumption, plus
(b) kilowatthours of use by such Participant on its system,
plus
(c) kilowatthours of electrical losses and unaccounted for
use by the Participant on its system, plus
(d) kilowatthours used by such Participant for pumping
Energy for its Entitlements in pumped storage
hydroelectric generating facilities, plus
(e) kilowatthours delivered by such Participant to Non-
Participants.
The Electrical Load of a Participant may be calculated in any
reasonable manner which substantially complies with this definition.
1.15 Energy is power produced in the form of electricity, measured in
kilowatthours or megawatthours.
1.16 Energy Entitlement is (i) a right to receive Energy under a System
Contract or a Firm Contract in accordance with Section 14.7(a), or (ii)
a right to receive all or a portion of the electric output of a
generating unit or units to which an Entity is entitled as an
owner (either sole or in common) or as a purchaser pursuant to a Unit
Contract, reduced by (iii) any portion thereof which such Entity is
selling pursuant to a Unit Contract. An Energy Entitlement in a
generating unit or units may, but need not, be combined with any other
Entitlements relating to such generating unit or units and may
be transferred separately from the related Installed Capability
Entitlement, Operable Capability Entitlement, Operating Reserve
Entitlements, or AGC Entitlement.
1.17 Entitlement is an Installed Capability Entitlement, Operable Capability
Entitlement, Energy Entitlement, Operating Reserve Entitlement, or AGC
Entitlement. When used in the plural form, it may be any or all such
Entitlements or combinations thereof, as the context requires.
1.18 Entity is any person or organization engaged in the electric power
business (the generation and/or transmission and/or distribution of
electricity for consumption by the public or the purchase, as principal
or broker, of Installed Capability, Operable Capability, Energy,
Operating Reserve, and/or AGC for resale at wholesale or retail),
whether the United States of America or Canada or a state or province
or a political subdivision thereof or a duly established agency of any
of them, a private corporation, a partnership, an individual, an
electric cooperative or any other person or organization recognized in
law as capable of owning property and contracting with respect thereto.
No person or organization shall be deemed to be an Entity if the
generation, transmission, or distribution of electricity by such person
or organization is primarily conducted to provide electricity for
consumption by such person or organization or a Related Person.
1.19 Executive Committee is the committee established pursuant to Section 7.
1.20 Firm Contract is any wholesale contract, other than a Unit Contract,
for the purchase of Installed Capability, Operable Capability, Energy,
Operating Reserves, and/or AGC for resale, pursuant to which the
purchaser's right to receive such Installed Capability, Operable
Capability, Energy, Operating Reserves, and/or AGC is subject only to
the supplier's inability to make deliveries thereunder as the result of
events beyond the supplier's reasonable control.
1.21 First Effective Date is March 1, 1997 or such other date as the
Commission may fix as the date on which the provisions of Parts One,
Two, Four and Five of this Agreement and the Tariff will become
effective.
1.22 Good Utility Practice shall mean 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
judgement in light of the facts known at the time the decision was
made, could have been expected to accomplish the desired result at a
reasonable cost consistent with good business practices, reliability,
safety and expedition. Good Utility Practice is not limited to a
single, optimum practice, method or act to the exclusion of others, but
rather is intended to include acceptable practices, methods, or acts
generally accepted in the region.
1.23 HQ Contracts are the HQ Interconnection Agreement, the HQ Phase I
Energy Contract, and the HQ Phase II Firm Energy Contract.
1.24 HQ Energy Banking Agreement is the Energy Banking Agreement entered
into on March 21, 1983 by Hydro-Quebec, the Participants, New England
Electric Transmission Corporation and Vermont Electric Transmission
Company, Inc., as it may be amended from time to time.
1.25 HQ Interconnection is the United States segment of the transmission
interconnection which connects the systems of Hydro-Quebec and the
Participants. "Phase I" is the United States portion of the 450 kV
HVDC transmission line from a terminal at the Des Cantons Substation on
the Hydro-Quebec system near Sherbrooke, Quebec to a terminal having an
approximate rating of 690 MW at a substation at the Comerford
Generating Station on the Connecticut River. "Phase II" is the United
States portion of the facilities required to increase to approximately
2000 MW the transfer capacity of the HQ Interconnection including an
extension of the HVDC transmission line from the terminus of Phase I at
the Comerford Station through New Hampshire to a terminal at
the Sandy Pond Substation in Massachusetts. The HQ Interconnection
does not include any PTF facilities installed or modified to effect
reinforcements of the New England AC transmission system required in
connection with the HVDC transmission line and terminals.
1.26 HQ Interconnection Agreement is the Interconnection Agreement entered
into on March 21, 1983 by Hydro-Quebec and the Participants, as it may
be amended from time to time.
1.27 HQ Interconnection Capability Credit of a Participant for a month
during the Base Term (as defined in Section 1.33) of the HQ Phase II
Firm Energy Contract is the sum in Kilowatts of (1)(a) the
Participant's percentage share, if any, of the HQ Phase I Transfer
Capability times (b) the HQ Phase I Transfer Credit, plus (2)(a) the
Participant's percentage share, if any, of the Phase II Transfer
Capability, times (b) the HQ Phase II Transfer Credit. The Management
Committee shall establish appropriate HQ Interconnection Capability
Credits to apply for a Participant which has such a percentage share
(i) during an extension of the HQ Phase II Firm Energy Contract, and
(ii) following the expiration of the HQ Phase II Firm Energy Contract.
1.28 HQ Interconnection Transfer Capability is the transfer capacity of the
HQ Interconnection under normal operating conditions, as determined in
accordance with Good Utility Practice. The "HQ Phase I Transfer
Capability" is the transfer capacity under normal operating conditions,
as determined in accordance with Good Utility Practice, of the Phase I
terminal facilities as determined initially as of the time immediately
prior to Phase II of the Interconnection was first being placed in
service, and as adjusted thereafter only to take into account changes
in the transfer capacity which are independent of any effect of Phase
II on the operation of Phase I. The "HQ Phase II Transfer Capability"
is the difference between the HQ Interconnection Transfer Capability
and the HQ Phase I Transfer Capability. Determinations of, and
any adjustment in, transfer capacity shall be made by the Regional
Market Operations Committee in accordance with a schedule consistent
with that followed by it in its determination of the Winter Capability
and Summer Capability of generating units.
1.29 HQ Net Interconnection Capability Credit of a Participant at a
particular time is its HQ Interconnection Capability Credit at the time
in Kilowatts, minus a number of Kilowatts equal to (1) the percentage
of its share of the HQ Interconnection Transfer Capability committed or
used by it for an "Entitlement Transaction" at the time under the HQ
Use Agreement, times (2) its HQ Interconnection Capability Credit for
the current month.
1.30 HQ Phase I Energy Contract is the Energy Contract entered into on March
21, 1983 by Hydro-Quebec and the Participants, as it may be amended
from time to time.
1.31 HQ Phase I Percentage is the percentage of the total HQ Interconnection
Transfer Capability represented by the HQ Phase I Transfer Capability.
1.32 HQ Phase I Transfer Credit is 60/69 of the HQ Phase I Transfer
Capability, or such other fraction of the HQ Phase I Transfer
Capability as the Management Committee may establish.
1.33 HQ Phase II Firm Energy Contract is the Firm Energy Contract dated as
of October 14, 1985 between Hydro-Quebec and certain of the
Participants, as it may be amended from time to time. The "Base Term"
of the HQ Phase II Firm Energy Contract is the period commencing on the
date deliveries were first made under the Contract and ending on August
31, 2000.
1.34 HQ Phase II Gross Transfer Responsibility of a Participant for any
month during the Base Term of the HQ Phase II Firm Energy Contract (as
defined in Section 1.33) is the number in Kilowatts of (a) the
Participant's percentage share, if any, of the HQ Phase II Transfer
Capability for the month times (b) the HQ Phase II Transfer Credit.
Following the Base Term of the HQ Phase II Firm Energy Contract, and
again following the expiration of the HQ Phase II Firm Energy Contract,
the Management Committee shall establish an appropriate HQ Phase II
Gross Transfer Responsibility that shall remain in effect concurrently
with the HQ Interconnection Capability Credit.
1.35 HQ Phase II Net Transfer Responsibility of a Participant for any month
is its HQ Phase II Gross Transfer Responsibility for the month minus a
number of Kilowatts equal to (1) the highest percentage of its share of
the HQ Interconnection Transfer Capability committed or used by it on
any day of the month for an "Entitlement Transaction" under the HQ Use
Agreement, times (2) its HQ Phase II Gross Transfer Responsibility
for the month.
1.36 HQ Phase II Percentage is the percentage of the total HQ
Interconnection Transfer Capability represented by the HQ Phase II
Transfer Capability.
1.37 HQ Phase II Transfer Credit is 90/131 of the HQ PhaseII Transfer
Capability, or such other fraction of the HQ Phase II Transfer
Capability as the Management Committee may establish.
1.38 HQ Use Agreement is the Agreement with Respect to Use of Quebec
Interconnection dated as of December 1, 1981 among certain of the
Participants, as amended and restated as of September 1, 1985 and as it
may be further amended from time to time.
1.39 Installed Capability of an electric generating unit or combination of
units during the Winter Period is the Winter Capability of such unit or
units and during the Summer Period is the Summer Capability of such
unit or units.
1.40 Installed Capability Entitlement is (a) the right to all or a portion
of the Installed Capability of a generating unit or units to which an
Entity is entitled as an owner (either sole or in common) or as a
purchaser pursuant to a Unit Contract, (b) reduced by any portion
thereof which such Entity is selling pursuant to a Unit Contract, and
(c) further reduced or increased, as appropriate, to recognize rights
to receive or obligations to supply Installed Capability pursuant to
System Contracts in accordance with Section 14.7(a). An Installed
Capability Entitlement relating to a unit or units may, but need not,
be combined with any other Entitlements relating to such generating
unit or units and may be transferred separately from the related
Operable Capability Entitlement, Energy Entitlement, Operating Reserve
Entitlements, or AGC Entitlement.
1.41 Installed Capability Responsibility * of a Participant for any month is
the number of Kilowatts determined in accordance with Section 12.2.
1.42 Installed System Capability of a Participant at a particular time is
(1) the sum of such Participant's Installed Capability Entitlements
plus (2) its HQ Net Interconnection Capability Credit at the time.
1.43 Interchange Transactions are transactions deemed to be effected under
Section 12 of the Prior NEPOOL Agreement prior to the Second Effective
Date, and transactions deemed to be effected under Section 14 of this
Agreement on and after the Second Effective Date.
1.44 ISO is the Independent System Operator which is expected to assume
responsibility for the continued operation of the NEPOOL Control Area
from the NEPOOL control center and the administration of the Tariff,
subject to regulation by the Commission.
1.45 Kilowatt is a kilowatthour per hour.
1.46 Load * (in Kilowatts) of a Participant during any particular hour is
the total during such hour (eliminating any distortion arising out of
(i) Interchange Transactions, or (ii) transactions across the system of
such Participant, or (iii) deliveries between Entities constituting a
single Participant, or (iv) other electrical losses, if and as
appropriate) of
(a) kilowatthours delivered by such Participant to its
retail customers for consumption (excluding any
kilowatthours which may be classified as interruptible
under market operation rules approved by the Regional
Market Operations Committee), plus
(b) kilowatthours delivered by such Participant pursuant to
Firm Contracts to its wholesale customers for resale,
plus
(c) kilowatthours of use by such Participant on its system,
exclusive of station use, plus
(d) kilowatthours of electrical losses and unaccounted for
use by the Participant on its system.
The Load of a Participant may be calculated in any reasonable manner
which substantially complies with this definition.
For the purposes of calculating a Participant's Annual Peak, Adjusted
Monthly Peak, Adjusted Annual Peak and Monthly Peak, the Load of a
Participant shall be adjusted to eliminate any distortions resulting
from voltage reductions. In addition, upon the request of any
Participant, the Regional Market Operations Committee shall make, or
supervise the making of, appropriate adjustments in the computation of
Load for the purposes of calculating any Participant's Annual Peak,
Adjusted Monthly Peak, Adjusted Annual Peak and Monthly Peak to
eliminate any distortions resulting from emergency load curtailments
which would significantly affect the Load of any Participant.
1.47 Lower Voltage PTF are all PTF facilities other than EHV PTF.
1.48 Management Committee is the committee established pursuant to Section
6.
1.49 Market Reliability Planning Committee is the committee established
pursuant to Section8.
1.50 Monthly Peak of a Participant for a month is the maximum Adjusted Load
of the Participant during any hour in the month.
1.51 NEPOOL is the New England Power Pool, the power pool created under and
governed by this Agreement, and the Entities collectively participating
in the New England Power Pool as Participants.
1.52 NEPOOL Installed Capability Responsibility for any month is the sum of
the Installed Capability Responsibilities of all Participants during
that month.
1.53 NEPOOL Control Area is the integrated electric power system to which a
common Automatic Generation Control scheme and various operating
procedures are applied by or under the supervision of the System
Operator in order to:
(i) match, at all times, the power output of the generators
within the electric power system and capacity and Energy
purchased from entities outside the electric power
system, with the load within the electric power
system;
(ii) maintain scheduled interchange with other interconnected
systems, within the limits of Good Utility Practice;
(iii) maintain the frequency of the electric power system
within reasonable limits in accordance with Good Utility
Practice and the criteria of the Northeast Power
Coordinating Council and the North American Electric
Reliability Council; and
(iv) provide sufficient generating capacity to maintain
operating reserves in accordance with Good Utility
Practice.
1.54 NEPOOL Installed Capability at any particular time is the sum of the
Installed System Capabilities of all Participants at such time.
1.55 NEPOOL Objective Capability for any year or period during a year is the
minimum NEPOOL Installed Capability, treating the reliability benefits
of the HQ Interconnection as Installed Capability, as established by
the Management Committee, required to be provided by the Participants
in aggregate for the period to meet the reliability standards
established by the Management Committee pursuant to Section 6.12.
1.56 New Unit is an electric generating unit (including a unit or units
owned by a Non-Participant in which a Participant has an Entitlement
under a Unit Contract) first placed into commercial operation after May
1, 1987 (or, in the case of a unit or units owned by a Non-Participant,
in which a Participant's Unit Contract Entitlement became effective
after May 1, 1987) and not listed on Exhibit B to the Prior NEPOOL
Agreement.
1.57 Non-Participant is any entity which is not a Participant.
1.58 Operable Capability of an electric generating unit or units in any hour
is the portion of the Installed Capability of the unit or units which
is operating or available to respond within an appropriate period (as
identified in market operation rules approved by the Regional Market
Operations Committee) to the System Operator's call to meet the
Energy and/or Operating Reserve and/or AGC requirements of the NEPOOL
Control Area during a Scheduled Dispatch Period or which may be
scheduled directly by individual Participants for the hour in
accordance with market operation rules approved by the Regional Market
Operations Committee.
1.59 Operable Capability Entitlement is (a) the right to all or a portion of
the Operable Capability of a generating unit or units to which an
Entity is entitled as an owner (either sole or in common) or as a
purchaser pursuant to a Unit Contract, (b) reduced by any portion
thereof which such Entity is selling pursuant to a Unit Contract, and
(c) further reduced or increased, as appropriate, to recognize rights
to receive or obligations to supply Operable Capability pursuant to
Firm Contracts or System Contracts in accordance with Section 14.7(a).
An Operable Capability Entitlement relating to a unit or units may, but
need not, be combined with any other Entitlements relating to such
generating unit or units, and may be transferred separately from the
related Installed Capability Entitlement, Energy Entitlement, Operating
Reserve Entitlements, or AGC Entitlement.
1.60 Operable Capability Requirement of a Participant for any hour is the
number of Kilowatts determined in accordance with Section 12.3.
1.61 Operable System Capability of a Participant in any hour is the sum of
such Participant's Operable Capability Entitlements.
1.62 Operating Reserve is any or a combination of 10-Minute Spinning
Reserve, 10-Minute Non-Spinning Reserve, and 30-Minute Operating
Reserve, as the context requires.
1.63 Operating Reserve Entitlement is (a) the right to all or a portion of
the Operating Reserve of any category which can be provided by a
generating unit or units to which an Entity is entitled as an owner
(either sole or in common) or as a purchaser pursuant to a Unit
Contract, (b) reduced by any portion thereof which such Entity is
selling pursuant to a Unit Contract, and (c) further reduced or
increased, as appropriate, to recognize rights to receive or
obligations to supply Operating Reserve of that category pursuant to
Firm Contracts or System Contracts in accordance with Section 14.7(a).
An Operating Reserve Entitlement in any category relating to a
generating unit or units may, but need not, be combined with any other
Entitlements relating to such generating unit or units and may be
transferred separately from the other categories of Operating
Reserve Entitlements related to such unit or units and from the related
Installed Capability Entitlement, Operable Capability Entitlement,
Energy Entitlement, or AGC Entitlement.
1.64 Other HQ Energy is Energy purchased under the HQ Phase I Energy
Contract which is classified as "Other Energy" under that contract.
1.65 Outside Transaction Adjustment of a Participant for any month is the
number of Kilowatts determined in accordance with Section 12.2(a)(3).
1.66 Participant is an eligible Entity (or group of Entities which has
elected to be treated as a single Participant pursuant to Section 4.1)
which is a signatory to this Agreement and has become a Participant in
accordance with Section 3.1 until such time as such Entity's status as
a Participant terminates pursuant to Section 21.2.
1.67 Pool-Planned Facility is a generation or transmission facility
designated as "pool-planned" pursuant to Section 18.1.
1.68 Pool-Planned Unit is one of the following units: New Haven Harbor Unit
1 (Coke Works), Mystic Unit 7, Canal Unit 2, Potter Unit 2, Wyman Unit
4, Stony Brook Units 1, 1A, 1B, 1C, 2A and 2B, Millstone Unit 3,
Seabrook Unit 1 and Waters River Unit 2 (to the extent of 7 megawatts
of its Summer Capability and 12 megawatts of its Winter Capability).
1.69 Power Year is the period of twelve months commencing on November 1.
1.70 Prior NEPOOL Agreement is the NEPOOL Agreement as in effect on December
1, 1996.
1.71 Proxy Unit is a hypothetical electric generating unit which possesses a
Winter Capability, equivalent forced outage rate, annual maintenance
outage requirement, and seasonal derating determined in accordance with
Section 12.2.
1.72 PTF are the pool transmission facilities defined in Section 15.1, and
any other new transmission facilities which the Regional Transmission
Planning Committee determines, in accordance with criteria approved by
the Management Committee and subject to review by the System Operator,
should be included in PTF.
1.73 Regional Market Operations Committee is the committee established
pursuant to Section 10.
1.74 Regional Transmission Operations Committee is the committee established
pursuant to Section 11.
1.75 Regional Transmission Planning Committee is the committee established
pursuant to Section 9.
1.76 Related Person of a Participant is either (i) a corporation,
partnership, business trust or other business organization more than
50% of the stock or equity interest in which is owned directly or
indirectly by, or is under common control with, the Participant, or
(ii) a corporation, partnership, business trust or other business
organization which owns directly or indirectly more than 50% of the
stock or other equity interest in the Participant, or (iii) a
corporation, partnership, business trust or other business organization
more than 50% of the stock or other equity interest in which is owned,
directly or indirectly by a corporation, partnership, business trust or
other business organization which also owns more than 50% of the stock
or other equity interest in the Participant.
1.77 Scheduled Dispatch Period is the shortest period for which the System
Operator performs and publishes a projected dispatch schedule based on
projected Electrical Loads and actual Bid Prices and Participant-
directed schedules for resources submitted in accordance with Section
14.2(d).
1.78 Second Effective Date is the date on which Part Three of the Agreement
shall become effective and shall be July 1, 1997 or such later date on
or before January 1, 1998 as the Management Committee may fix, or such
other date as the Commission may fix on its own or pursuant to a
request of the Management Committee.
1.79 Summer Capability of an electric generating unit or combination of
units is the maximum dependable load carrying ability in Kilowatts of
such unit or units (exclusive of capacity required for station use)
during the Summer Period, as determined by the Regional Market
Operations Committee in accordance with Section 10.13(f).
1.80 Summer Period in each Power Year is the four-month period from June
through September.
1.81 System Contract is any wholesale contract for the purchase for resale
of Installed Capability, Operable Capability, Energy, Operating
Reserves and/or AGC, other than a Unit Contract or Firm Contract,
pursuant to which the purchaser is entitled to a specifically
determined or determinable amount of such Installed Capability,
Operable Capability, Energy, Operating Reserve and/or AGC.
1.82 System Operator is the central dispatching agency provided for in this
Agreement which has responsibility for the operation of the NEPOOL
Control Area from the control center and the administration of the
Tariff. The System Operator shall be the ISO after it has been
activated and is prepared to assume responsibility for the operation of
the NEPOOL Control Area and control center.
1.83 Target Availability Rate is the assumed availability of a type of
generating unit utilized by the Management Committee in its
determination pursuant to Section 6.14(e) of NEPOOL Objective
Capability.
1.84 Tariff is the NEPOOL Open Access Transmission Tariff set out in
Attachment B to the Agreement, as modified and amended from time to
time.
1.85 Third Effective Date is the date on which all Interchange Transactions
shall begin to be effected on the basis of separate Bid Prices for each
type of Entitlement. The Third Effective Date shall be fixed at the
discretion of the Management Committee to occur within six months to
one year after the Second Effective Date, or at such later date as the
Commission may fix on its own or pursuant to a request by the
Management Committee.
1.86 Unit Contract is a wholesale purchase contract pursuant to which the
purchaser is in effect currently entitled either (i) to a specifically
determined or determinable portion of the Installed Capability of a
specific electric generating unit or units, or (ii) to a specifically
determined or determinable amount of Operable Capability, Energy,
Operating Reserve and/or AGC if, or to the extent that, a specific
electric generating unit or units is or can be operated.
1.87 Voting Share has the meaning specified in Section 6.3.
1.88 Winter Capability of an electric generating unit or combination of
units is the maximum dependable load carrying ability in Kilowatts of
such unit or units (exclusive of capacity required for station use)
during the Winter Period, as determined by the Regional Market
Operations Committee in accordance with Section 10.13(f).
1.89 Winter Period in each Power Year is the seven-month period from
November through May and the month of October.
1.90 10-Minute Spinning Reserve in an hour are the following resources that
are designated by the System Operator in accordance with market
operation rules, as approved by the Regional Market Operations
Committee, 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 market operation rules is necessary to satisfy the
immediate contingency; and (2) any portion of the Electrical Load of a
Participant, including Energy supplied to pumped storage hydroelectric
generating facilities operating in the pumping mode, 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 market
operation rules is necessary to satisfy the immediate contingency.
1.91 10-Minute Non-Spinning Reserve in an hour are the following resources
that are designated by the System Operator in accordance with market
operation rules, as approved by the Regional Market Operations
Committee, 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 for so long as the System Operator determines in accordance with
market operation rules is necessary to satisfy the immediate
contingency; (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 market
operations rules is necessary to satisfy the immediate contingency; 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.
1.92 30-Minute Operating Reserve in an hour are the following resources that
are designated by the System Operator in accordance with market
operation rules, as approved by the Regional Market Operations
Committee, 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 capable of providing contingency
protection by loading to supply Energy within thirty minutes of demand
at an output equal to its full amount of generating capacity so
designated; (2) any portion of the Electrical Load of a Participant,
including Energy supplied to pumped storage hydroelectric generating
facilities operating in the pumping mode, 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 market operation rules is necessary to
satisfy the immediate contingency; (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.
1.93 33rd Amendment is the Thirty-Third Agreement Amending New England Power
Pool Agreement dated as of December 1, 1996.
1.94 Modification of Certain Definitions When a Participant Purchases a
Portion of Its Requirements from Another Participant Pursuant to Firm
Contract
Definitions marked by an asterisk (*) are modified as follows
when a Participant purchases a portion of its requirements of
electricity for resale from another Participant pursuant to a
Firm Contract:
(a) If the Firm Contract limits deliveries to a specifically
stated number of Kilowatts and requires payment of a
demand charge thereon (thus placing the responsibility
for meeting additional demands on the purchasing
Participant):
(1) in computing the Adjusted Load of the purchasing
Participant, the Kilowatts received pursuant to
such Firm Contract shall be deemed to be the
number of Kilowatts specified in the Firm
Contract; and
(2) in computing the Load of the supplying
Participant, the Kilowatts delivered pursuant to
such Firm Contract shall be deemed to be
the number of Kilowatts specified in the Firm
Contract.
(b) If the Firm Contract does not limit deliveries to a
specifically stated number of Kilowatts, but entitles
the purchasing Participant to receive such amounts of
electricity as it may require to supply the electric
needs of its customers (thus placing the responsibility
for meeting additional demands on the supplying
Participant):
(1) the Installed Capability Responsibility of the
purchasing Participant shall be equal to the
amount of its Installed Capability Entitlements;
(2) in computing the Adjusted Load of the purchasing
Participant, the Kilowatts received pursuant to
such Firm Contract shall be deemed to be a
quantity R{l}; and
(3) in computing the Load of the supplying
Participant, the Kilowatts delivered pursuant to
such Firm Contract shall be deemed to be a
quantity R{l}.
The quantity R{l} equals (i) the Load of the purchasing
Participant less (ii) the amount of the purchasing
Participant's Installed Capability Entitlements
multiplied by a fraction wherein:
X is the maximum Load of the purchasing
Participant in the month, and
Y is the NEPOOL Installed Capability
Responsibility multiplied by the
purchasing Participant's fraction P
determined pursuant to Section 12.2(a),
computed as if the Firm Contract did not
exist.
Terms used in this Agreement which are not defined above but which are
defined in the Tariff shall have the meanings specified in the Tariff.
Terms used in this Agreement that are not defined above, or in the
Tariff, or in the sections in which such terms are used, shall have the
meanings customarily attributed to such terms in the electric power
industry in New England.
SECTION 2
PURPOSE; EFFECTIVE DATES
2.1 Purpose. This Restated NEPOOL Agreement is intended to provide for a
restructuring of the New England Power Pool by modifying the pool's
governance and market provisions to take account of a changed
competitive environment, by modifying the transmission responsibilities
of the Participants so that the pool will perform the functions of a
regional transmission group and provide service to Participants and
Non-Participants under a regional open access transmission tariff, and
by providing for the activation of the ISO and the execution of a
contract between the ISO and NEPOOL to define the ISO's
responsibilities.
2.2 Effective Dates; Transitional Provisions. The provisions of Parts One,
Two, Four and Five of this Agreement and the Tariff shall become
effective on the First Effective Date, and shall replace on the First
Effective Date the provisions of Sections 1-8, inclusive, 10, 11, 13,
14.2, 14.3, 14.4 and 16 of the Prior NEPOOL Agreement.
The effectiveness of the remaining Sections of this Restated NEPOOL
Agreement shall be delayed pending the preparation of implementing
criteria, rules and standards and computer programs. These Sections
shall become effective on the Second Effective Date and shall replace
on the Second Effective Date the remaining provisions of the
Prior NEPOOL Agreement, which shall continue in effect until the Second
Effective Date.
As provided in Section 14, certain portions of Section 14 which will
become effective on the Second Effective Date will be superseded on the
Third Effective Date by other portions of Section 14.
The activation of the ISO is expected to occur after the First
Effective Date. Until that time, the NEPOOL committees shall continue
to be responsible for the supervision of the NEPOOL staff.
SECTION 3
MEMBERSHIP
3.1 Membership. Those Entities which are Participants in NEPOOL on the
First Effective Date shall continue to be Participants.
Any other Entity which is engaged, or proposes to engage, in the
wholesale or retail electric power business in New England may, upon
compliance with such reasonable conditions as the Management Committee
may prescribe, become a Participant by depositing a counterpart of this
Agreement as theretofore amended, duly executed by it, with the
Secretary of the Management Committee, accompanied by a certified copy
of a vote of its board of directors, or such other body or bodies as
may be appropriate, duly authorizing its execution and performance of
this Agreement, and a check in payment of the application fee described
below.
Any such Entity which satisfies the requirements of this Section 3.1
shall become a Participant, and this Agreement shall become fully
binding and effective in accordance with its terms as to such Entity,
as of the first day of the second calendar month following its
satisfaction of such requirements; provided that an earlier or later
effective time may be fixed by the Management Committee with the
concurrence of such Entity or by the Commission.
The application fee to be paid by each Entity seeking to become a
Participant shall be in addition to the annual fee provided by Section
19.1 and shall be $500 or such other amount as may be fixed by the
Management Committee.
3.2 Operations Outside the Control Area. Subject to the reciprocity
requirements of the Tariff, if a Participant serves a Load, or has
Entitlements in supply or demand-side resource facilities or owns
transmission and/or distribution facilities, located outside of
the NEPOOL Control Area, such Load and facilities shall not be included
for purposes of determining the Participant's rights, responsibilities
and obligations under this Agreement, except that the Participant's
Entitlements in supply or demand-side resource facilities outside the
NEPOOL Control Area shall be included in such determinations if, to the
extent, and while such Entitlements are used for retail or wholesale
sales within the NEPOOL Control Area or are designated by a Participant
for purposes of meeting its obligations under Section 12 of this
Agreement.
3.3 Lack of Place of Business in New England. If and for so long as a
Participant does not have a place of business located in one of the New
England states, the Participant shall be deemed to irrevocably (1)
submit to the jurisdiction of any Connecticut state court or
United States Federal Court sitting in Connecticut (the state whose
laws govern this Agreement) over any action or proceeding arising out
of or relating to this Agreement that is not subject to the exclusive
jurisdiction of the Commission, (2) agree that all claims with respect
to such action or proceeding may be heard and determined in such
Connecticut state court or Federal court, (3) waive any objection to
venue or any action or proceeding in Connecticut on the basis of forum
non conveniens, and (4) agree that service of process may be made on
the Participant outside Connecticut by certified mail, postage prepaid,
mailed to the Participant at the address of its member on the
Management Committee as set out in the NEPOOL roster or at the address
of its principal place of business.
3.4 Obligation for Deferred Expenses. NEPOOL may provide for the deferral
on the books of the Participants from time to time of capital or other
expenditures, and the recovery of the deferred expenses in subsequent
periods. Any Entity which becomes a Participant during the recovery
period for any such deferred expenses shall be obligated, together with
the continuing Participants, for its share of the current and
deferred expenses pursuant to Section 19.2.
3.5 Financial Security. For an Entity applying to become a Participant or
any continuing Participant that the Management Committee reasonably
determines may fail to meet its financial obligations under the
Agreement, the Management Committee may require reasonable credit
review procedures which shall be made in accordance with standard
commercial practices. In addition, the Management Committee may
prescribe for such Entity or Participant a requirement that the Entity
or Participant provide and maintain in effect an unconditional and
irrevocable letter of credit as security to meet its responsibilities
and obligations under the Agreement, or an alternative form of security
proposed by the Entity or Participant and acceptable to the Management
Committee and consistent with commercial practices established by the
Uniform Commercial Code that protects the Participants against the risk
of non-payment.
SECTION 4
STATUS OF PARTICIPANTS
4.1 Treatment of Certain Entities as Single Participant. All Entities
which are controlled by a single person (such as a corporation or a
business trust) which owns at least seventy-five percent of the voting
shares of each of them shall be collectively treated as a single
Participant for purposes of this Agreement, if they each elect such
treatment. They are encouraged to do so. Such an election shall be
made in writing and shall continue in effect until revoked in writing.
In view of the long-standing arrangements in Vermont, Vermont Electric
Power Company, Inc. and any other Vermont electric utilities which
elect in writing to be grouped with it shall be collectively treated as
a single Participant for purposes of this Agreement.
4.2 Participants to Retain Separate Identities. The signatories to this
Agreement shall not become partners by reason of this Agreement or
their activities hereunder, but as to each other and to third persons,
they shall be and remain independent contractors in all matters
relating to this Agreement. This Agreement shall not be construed to
create any liability on the part of any signatory to anyone not a party
to this Agreement. Each signatory shall retain its separate identity
and, to the extent not limited hereby, its individual freedom in
rendering service to its customers.
SECTION 5
NEPOOL OBJECTIVES AND COOPERATION BY PARTICIPANTS
5.1 NEPOOL Objectives. The objectives of NEPOOL are, through joint
planning, central dispatching, cooperation in environmental matters and
coordinated construction, central dispatch by the System Operator of
the operation and coordinated maintenance of electric supply and
demand-side resources and transmission facilities, the provision of
an open access regional transmission tariff and the provision of a
means for effective coordination with other power pools and utilities
situated in the United States and Canada,
(a) to assure that the bulk power supply of the NEPOOL
Control Area conforms to proper standards of
reliability;
(b) to create and maintain open, non-discriminatory,
competitive, unbundled markets for Energy, capacity, and
ancillary services that function efficiently in a
changing electric power industry and have access to
regional transmission at rates that do not vary with
distance;
(c) to attain maximum practicable economy, consistent with
proper standards of reliability and the maintenance of
competitive markets, in such bulk power supply; and
(d) to provide access to competitive markets within the
NEPOOL Control Area and to neighboring regions;
and to provide for equitable sharing of the resulting responsibilities,
benefits and costs.
5.2 Cooperation by Participants. In order to attain the objectives of
NEPOOL set forth in Section 5.1, each Participant shall observe the
provisions of this Agreement in good faith, shall cooperate with all
other Participants and shall not either alone or in conjunction with
one or more other Entities take advantage of the provisions of this
Agreement so as to harm another Participant or to prejudice the
position of any Participant in the electric power business.
Until the Second Effective Date, in order to assure the equitable
sharing among the Participants of the benefits contemplated by this
Agreement, no Participant shall participate, except pursuant to this
Agreement, in any transaction with one or more other Participants or
other Entities if such transaction involves an economy interchange
arrangement. The foregoing restriction shall not, however, apply to an
economy interchange or other similar arrangement between or among a
Participant and one or more Entities which are not Participants if, and
to the extent that, such arrangement is consistent with attainment of
the objectives stated in Section 5.1 and with the Participant's
obligations under this Agreement.
Until the effective date of the Tariff, in order further to assure the
equitable sharing among the Participants of the benefits and costs
contemplated by this Agreement, no transfer by a Participant to its
Related Person of an Entitlement in any generating unit shall be
recognized for purposes of this Agreement, including but not limited to
the calculation and allocation of benefits and costs under this
Agreement, if either (i) the transferee has a zero Adjusted Load or
(ii) the amount of the transferee's Installed System Capability,
including such Entitlement, bears no reasonable relation to its
Adjusted Load. Furthermore, no other arrangement substantially similar
to that described in the preceding sentence shall be recognized for
purposes of this Agreement, including but not limited to the
calculation and allocation of benefits and costs under this Agreement.
For the purposes of the preceding paragraph, the Adjusted Load and
Installed System Capability of any transferee that is not a Participant
shall be determined as if it were a Participant. The term
"transferee," as used herein, shall include, without limitation,
any Participant or Entity, or any other organization or person.
PART TWO
GOVERNANCE
SECTION 6
MANAGEMENT COMMITTEE
6.1 Membership. There shall be a Management Committee which shall be
constituted as follows: each Participant shall appoint and be
represented by one member of the Management Committee.
6.2 Term of Members. Each member of the Management Committee shall hold
office until such member is replaced by the Participant which appointed
the member or until such Participant ceases to be a Participant.
Replacement of a member shall be effected by delivery by a Participant
of written notice of such replacement to the Secretary of the
Management Committee.
6.3 Votes. Each member of the Management Committee shall have a Voting
Share in any month entitling the member to cast, on behalf of the
Participant which the member represents, votes representing the
percentage to which the member's Participant is entitled of the
aggregate Voting Shares of all Participants for the month. The
percentage of the aggregate Voting Shares of all Participants to which
a Participant is entitled in any month shall be determined in
accordance with the following formula:
.15833 P .15833 E .15833 C .15833 X .15833 M .15833 R .05 Y
V = (----)+ (----)+ (----)+ (----)+ (----)+ (----)+ (---)
P{1} E{1} C{1} X{1} M{1} R{1} Y{1}
in which
V = the Participant's Voting Share as a percentage of the aggregate
Voting Shares of all Participants;
P = the average for each of the most recently completed twelve months
of the Participant's maximum Load during any clock hour in a month;
P{1} = the average of the sums for each of the most recently completed
twelve months of the noncoincidental maximum Load during any clock
hour in a month of all Participants;
E = the average for the most recently completed twelve months of the
following: the Participant's monthly Loads plus any kilowatthours
delivered during the month to loads classified as interruptible
under market operation rules approved by the Regional Market
Operations Committee;
E{1} = the average of the sums for each of the most recently completed
twelve months of the following: the monthly Loads of all
Participants plus any kilowatthours delivered during the month to
loads classified as interruptible under market operation rules
approved by the Regional Market Operations Committee.
C = the average in megawatts for the most recently completed twelve
months of the sum for each month of the Generation Ownership
Shares, as defined in this Section, of the Participant;
C{1} = the average in megawatts for the most recently completed twelve
months of the sum for each month of the Generation Ownership Shares
of all Participants;
X = the average for the most recently completed twelve months of the
sum for each month of (i) a number of kilowatthours equal to the
Kilowatts of the Participant's Generation Ownership Shares, times
the number of hours in the month, plus (ii) the number of
kilowatthours that the Participant was entitled to receive in each
hour with respect to its Energy Entitlements under Unit Contracts
or System Contracts times, in the case of each contract, the number
of hours the contract was in effect in the month, as computed
without giving effect to any resale in whole or part of any such
Energy Entitlement;
X{1} = the average for the most recently completed twelve months of the
sum for each month of (i) a number of kilowatthours equal to the
Kilowatts of the Generation Ownership Shares of all Participants,
times the number of hours in the month, plus (ii) the number of
kilowatthours that all Participants were entitled to receive in
each hour with respect to their Energy Entitlements under Unit
Contracts or System Contracts times, in the case of each contract,
the number of hours the contract was in effect in the month, as
computed without giving effect to any resale in whole or part of
any such Energy Entitlement;
M = the circuit miles of the Participant's Transmission Ownership
Shares, as defined in this Section, of PTF transmission lines
times, in the case of each line, the nominal operating voltage of
the line;
M{1} = the aggregate of the circuit miles of the Transmission Ownership
Shares of PTF transmission lines of all Participants times, in the
case of each line, the nominal operating voltage of the line;
R = the Annual Transmission Revenue Requirements of the Participant's
PTF as of the beginning of the current calendar year as determined
in accordance with Attachment F to the Tariff except that 1) such
Revenue Requirements shall not be reduced by the transmission
support revenue received as described in Section I of that
Attachment and 2) such Revenue Requirements shall not include
transmission support payments as described in Section J of that
Attachment for support arrangements which were entered into after
December 31, 1996;
R{1} = the aggregate Annual Transmission Revenue Requirements of the PTF
of all Participants as of the beginning of the current calendar
year as determined in accordance with Attachment F to the Tariff,
except that 1) such Revenue Requirements shall not be reduced by
the transmission support revenue received as described in Section I
of that Attachment and 2) such Revenue Requirements shall not
include transmission support payments as described in Section J of
that Attachment for support arrangements which were entered into
after December 31, 1996;
Y = 1;and
Y{1} = the number of NEPOOL Participants at the beginning of the month;
provided, however, that a Participant and its Related Persons may not have
aggregate Voting Shares exceeding 25% of the aggregate Voting Shares to which
all Participants are entitled. If the aggregate Voting Shares of a Participant
and its Related Persons would be in excess of 25% if it were not for this
limitation, the remaining Voting Shares to which such Participant and its
Related Persons would otherwise be entitled shall be allocated to the other
Participants on a pro rata basis.
For purposes of the preceding formula (i) if an Entity has been a Participant
for less than twelve months, the amounts to be taken into account for purposes
of "P", "E", "C" and "X" in the formula shall be for the period during which
the Entity has been a Participant; (ii) for purposes of "X" and "X{1}" in the
formula, the number of kilowatthours to be taken into account with respect to
the HQ Phase II Firm Energy Contract for each Participant which has a share
in the HQ Phase II Firm Energy Contract shall be computed on the basis of the
number of Kilowatts of its HQ Interconnection Capability Credit, if any, for
the month; and (iii) for purposes of "X" and "X{1}" in the formula, the number
of kilowatthours to be taken into account with respect to an Energy Entitlement
under a Unit Contract or System Contract, other than the HQ Phase II Firm
Energy Contract, under which a Participant is entitled to receive Energy
from outside the NEPOOL Control Area shall be computed on the basis of the
number of Kilowatts of Installed Capability credit, or Monthly Peak reduction,
for which the Participant is given credit in determining whether it has
satisfied its Installed Capability Responsibility pursuant to Section12.
In the event a Participant both participates in the wholesale bulk power market
and owns PTF, the member appointed by the Participant shall be entitled to
divide the member's vote, as determined in accordance with this Section, on any
matter on the basis specified by it in a notice given to the Secretary of the
Management Committee at or prior to the meeting at which the vote is to be
cast, to reflect its market and transmission interests. In such case the
portion of the member's vote reflecting its transmission interest may be cast
by the member's alternate.
For purposes of this Section, the Generation Ownership Shares of a Participant
means and includes:
(A) the direct ownership interest which the Participant has as a
sole or joint owner in the Installed Capability of a generating
unit which is subject to NEPOOL central dispatch in accordance
with Section 13.2;
(B) the indirect ownership interest which the Participant has, as a
shareholder in Connecticut Yankee Atomic Power Company, Maine
Yankee Atomic Power Company, Vermont Yankee Nuclear Power
Corporation or a similar corporation, or as a general or limited
partner in Ocean State Power or a similar partnership, in the
Installed Capability of a generating unit which is subject to
NEPOOL central dispatch in accordance with Section 13.2,
provided the corporation or partnership is itself not a
Participant;
(C) any other interest which the Participant has in the Installed
Capability of a generating unit which is subject to NEPOOL
central dispatch in accordance with Section 13.2, under a lease
or other contractual arrangement, provided the other party to
the arrangement is itself not a Participant and the Management
Committee determines, at the request of the affected
Participant, that the Participant has benefits and rights, and
assumes risks, under the arrangement with respect to the unit
which are substantially equivalent to the benefits, rights
and risks of an owner; and
(D) an interest which the Participant shall be deemed to have in the
direct ownership interest, or the indirect ownership interest as
a shareholder or general or limited partner, of a Related Person
of the Participant in the Installed Capability of a generating
unit which is subject to NEPOOL central dispatch in accordance
with Section 13.2, provided the Related Person is itself not a
Participant.
For purposes of this Section, the Transmission Ownership Shares of a
Participant means and includes:
(W) the direct ownership interest which the Participant has as a
sole or joint owner of PTF;
(X) the indirect ownership interest which the Participant has, as a
shareholder in a corporation, or as a general or limited partner
in a partnership, in PTF owned by such corporation or
partnership, provided the corporation or partnership is
not itself a Participant;
(Y) any other interest which the Participant has in PTF under a
lease or other contractual arrangement, provided the other party
to the arrangement is not itself a Participant and the
Management Committee determines, at the request of the affected
Participant, that the Participant has benefits and rights, and
assumes risks, under the arrangement with respect to the PTF
which are substantially equivalent to the benefits, rights and
risks of an owner; and
(Z) an interest which the Participant shall be deemed to have in the
direct ownership interest, or the indirect ownership interest as
a shareholder or general or limited partner, of a Related Person
of the Participant in PTF, provided the Related Person is itself
not a Participant.
6.4 Number of Votes Necessary for Action. Actions of the Management
Committee shall be effected only upon an affirmative vote of members
having at least 66% of the aggregate Voting Shares to which all members
are entitled; provided, however, that the negative votes of any three
or more members representing Participants which are not Related Persons
of each other and which have at least 20% of the aggregate Voting
Shares to which all members are entitled shall defeat any proposed
action. In determining whether the negative vote total specified above
has been reached, the following limitation shall be applied: if the
member representing any Participant would be entitled to cast against
the proposed action more than 18% of the aggregate Voting Shares to
which all members are entitled, such member shall be entitled to vote
negatively only 18% of such aggregate Voting Shares.
6.5 Proxies. The vote of any member of the Management Committee or the
member's alternate may be cast by another person pursuant to a written
proxy dated not more than one year previous to the meeting and
delivered to the Secretary of the Management Committee at or prior to
the meeting at which the proxy vote is cast.
6.6 Alternates. A Participant may designate, by a written notice delivered
to the Secretary of the Management Committee, an alternate for a member
of the Management Committee appointed by it. In the absence of the
member, the alternate shall have all the powers of the member,
including the power to vote.
6.7 Officers. At its annual meeting, the Management Committee shall elect
from among its members a Chair and a Vice-Chair; it shall also elect a
Secretary who need not be a member. These officers shall have the
powers and duties usually incident to such offices.
6.8 Meetings. The Management Committee shall hold its annual meeting in
December at such time and place as the Chair shall designate and shall
hold other meetings in accordance with a schedule adopted by the
Management Committee or at the call of the Chair. One or more members
who represent Participants having in the aggregate at least 3% of the
aggregate Voting Shares of all Participants may call a special meeting
of the Management Committee in the event that the Chair shall fail to
call such a meeting within three business days following the Chair's
receipt from such member or members of a request specifying the subject
matters to be acted upon at the meeting.
6.9 Notice of Meetings. Written notice of each meeting of the Management
Committee shall be given to each member not less than five business
days prior to the date of the meeting, which notice shall specify the
principal subject matter expected to be acted upon at the meeting.
6.10 Adoption of Budgets. At each annual meeting, the Management Committee
shall adopt a NEPOOL budget for the ensuing calendar year. In adopting
budgets the Management Committee shall give due consideration to the
budgetary requests of each committee and shall include the budget of
the ISO as determined in accordance with NEPOOL's contract between
NEPOOL and the ISO. The Management Committee may modify any NEPOOL
budget from time to time after its adoption and shall modify the
NEPOOL budget if and as required to support changes to the ISO budget
adopted in accordance with the contract between NEPOOL and the ISO.
6.11 Adoption of Bylaws. The Management Committee may adopt bylaws,
consistent with this Agreement, governing procedural matters including
the conduct of its meetings and those of the other committees.
6.12 Establishing Reliability Standards. It shall be the duty of the
Management Committee, after review of reports or actions of the System
Operator and the Market Reliability Planning Committee and Regional
Transmission Planning Committees and such other matters as the
Management Committee deems pertinent, to establish or approve proper
standards of reliability for the bulk power supply of NEPOOL. Such
standards shall be consistent with the directives of the North American
Electric Reliability Council and the Northeast Power Coordinating
Council and shall be reviewed periodically by the Management Committee
and revised as the Management Committee deems appropriate.
6.13 Appointment and Compensation of NEPOOL Personnel. The Management
Committee shall determine what personnel are desirable for the
effective operation and administration of NEPOOL and shall fix or
authorize the fixing of the compensation for such persons.
6.14 Duties and Authority.
(a) The Management Committee shall have the duty and
requisite authority to administer, enforce and interpret
the provisions of this Agreement in order to accomplish
the objectives of NEPOOL including the making of
any decision or determination necessary under any
provision of this Agreement and not expressly specified
to be decided or determined by any other body.
(b) The Management Committee shall have the authority to
provide for such facilities, materials and supplies as
the Management Committee may determine are necessary or
desirable to carry out the provisions of this
Agreement.
(c) The Management Committee shall have, in addition to the
authority provided in Section 6.12, the authority, after
consultation with other NEPOOL committees and the System
Operator, to establish or approve consistent standards
with respect to any aspect of arrangements between
Participants and Non-Participants which it determines
may adversely affect the reliability of NEPOOL, and to
review such arrangements to determine compliance with
such standards.
(d) The Management Committee, or its designee, shall have
the authority to act on behalf of all Participants in
carrying out any action properly taken pursuant to the
provisions of this Agreement. Without limiting the
foregoing general authority, the Management Committee,
or its designee, shall have the authority on behalf of
all Participants to execute any contract, lease or other
instrument which has been properly authorized pursuant
to this Agreement including, but not limited to, one
or more contracts with the ISO, and to file with the
Commission and other appropriate regulatory bodies: (i)
this Agreement and documents amending or supplementing
this Agreement, including the Tariff, (ii) contracts
with Non-Participants or the ISO, and (iii) related
tariffs, rate schedules and certificates of concurrence.
The Management Committee shall, in addition, have the
authority to represent NEPOOL in proceedings before the
Commission.
(e) The Management Committee shall have the duty and
requisite authority, after consultation with other
NEPOOL committees and the System Operator, to fix the
NEPOOL Objective Capability for each month of
each Power Year prior to the beginning of the Power Year
and thereafter to review at least annually the
anticipated Load of the NEPOOL Participants and NEPOOL
Installed Capability for each month of such Power Year
and to make such adjustments in the NEPOOL Objective
Capability as the Management Committee may determine on
the basis of such review. Since changes in the
circumstances which must be assumed by the Management
Committee in fixing NEPOOL Objective Capability
for a future period can significantly affect the
required level of NEPOOL Objective Capability for that
period, the Management Committee shall, where
appropriate, also determine the effect on NEPOOL
Objective Capability of significant changes in
circumstances from those assumed, either by fixing
alternative NEPOOL Objective Capabilities, or by
adopting adjustment factors or formulas.
(f) The Management Committee shall have the duty and
requisite authority to establish or approve schedules
fixing the amounts to be paid by Participants and Non-
Participants to permit the recovery of expenses incurred
in furnishing some or all of the services furnished by
NEPOOL either directly or through the System Operator.
(g) The Management Committee shall have the duty and
requisite authority to provide for the sharing by
Participants, on such basis as the Management Committee
may deem appropriate, of payments and costs which are
not otherwise reimbursed under this Agreement and which
are incurred by Participants or under arrangements with
Non-Participants and approved or authorized by the
Committee as necessary in order to meet or avoid short-
term deficiencies in the amount of resources available
to meet the pool's reliability objectives.
(h) The Management Committee shall have the authority, at
the time that it acts on an Entity's application
pursuant to Section 3.1 to become a Participant, to
waive, conditionally or unconditionally, compliance by
such Entity with one or more of the obligations imposed
by this Agreement if the Management Committee determines
that such compliance would be unnecessary or
inappropriate for such Entity and the waiver for such
Entity will not impose an additional burden on other
Participants.
(i) Until the Second Effective Date, the Management
Committee shall have the duty and requisite authority to
determine which generating facilities should be equipped
for Automatic Generation Control in order to maintain
proper frequency for the interconnected bulk power
system of the Participants and to control power flows on
interconnections between Participants and non-
Participants. The Management Committee shall
establish a system for sharing by the Participants until
the Second Effective Date, on such basis as the
Committee may deem appropriate, of the costs, including
loss of generator efficiency, that are incurred by
Participants in installing, maintaining and operating
Automatic Generation Control equipment required by the
Committee and are not otherwise reimbursed under this
Agreement.
(j) The Management Committee shall have the duty and
requisite authority to act on appeals to it from the
actions of other NEPOOL committees and to appoint a
special committee to administer NEPOOL's alternate
dispute resolution procedures or to take any other
action if it determines that such action is necessary or
appropriate to achieve a prompt resolution of disputes
under the provisions of Section 21.1.
(k) The Management Committee shall have such further powers
and duties as are conferred or imposed upon it by other
sections of this Agreement.
6.15 Attendance of Members of Management Committee at Other Committee
Meetings. Each member of the Management Committee or that member's
designee shall be entitled to attend any meeting of any other NEPOOL
committee, and shall have a reasonable opportunity to express views on
any matter to be acted upon at the meeting.
SECTION 7
EXECUTIVE COMMITTEE
7.1 Organization. There shall be an Executive Committee which shall have
all the powers and duties of the Management Committee (except as
provided below), subject to appeal to the Management Committee pursuant
to the provisions of Section 7.11. Between meetings of the Management
Committee, the Executive Committee shall exercise the powers and
perform the duties of the Management Committee. The Executive
Committee shall not have any of the powers or duties of the Management
Committee under Sections 6.7 and 6.10, except that the Executive
Committee shall have the power of the Management Committee to modify
from time to time an overall NEPOOL annual budget adopted by the
Management Committee, subject to the limitation that the aggregate
amount of net increase in an overall budget which may be effected by
the Executive Committee for any year shall not exceed 10% of the budget
initially adopted by the Management Committee.
7.2 Membership. The Executive Committee shall be constituted as follows:
following its activation, the ISO shall have the right to appoint a
non-voting member of the Committee; each Participant whose Voting Share
equals or exceeds 3% of the aggregate Voting Shares of all Participants
shall have the right to appoint a voting member of the Committee; the
remaining Participants whose Voting Shares are less than 3% of the
aggregate Voting Shares of all Participants shall be divided into the
following five groups, with each having the right to appoint one voting
member of the Committee:
(a) One group consisting of the remaining
Participants which are municipally-owned and
cooperatively-owned utilities;
(b) One group consisting of the remaining
Participants which are not subject to traditional
utility rate regulation and which are engaged
in the NEPOOL Control Area principally in the
business of owning or operating generation
facilities and selling the output of such
generation;
(c) One group consisting of the remaining
Participants which are not subject to traditional
utility rate regulation and which are engaged
in the NEPOOL Control Area principally in a
business other than the business of owning or
operating generation or PTF facilities
and selling the output of such generation;
(d) One group consisting of the remaining
Participants, if any, which (i) own PTF, (ii) are
not engaged in electric generation or
distribution and do not participate in the
wholesale bulk power market, and (iii) are not
Related Persons of any other Participant;
and
(e) One group consisting of the remaining
Participants which are investor-owned utilities
subject to traditional rate regulation or
other Entities which do not qualify to be
included in any of the other four groups.
Notwithstanding the foregoing, any such Participant may elect to join a
different group than the one to which it would be assigned under the
foregoing provisions if this is acceptable to the members of the group
it elects to join. In the event any Participant is a Related Person of
another Participant which has the individual right to appoint a member
of the Committee on the basis of its individual Voting Share, the
Participant shall be represented on the Committee by the member
appointed by the Participant which is its Related Person and shall not
be assigned to any of the five groups.
7.3 Term of Members. The member of the Executive Committee appointed by
the ISO shall serve until replaced by the ISO. Members of the
Executive Committee appointed by a Participant or group of Participants
shall serve until replaced by the Participant or Participants which
appointed them or until such Participant or Participants shall lose
their status as Participants or otherwise lose their right to appoint
the member. Appointment or replacement of a member shall be effected
by the ISO or a Participant or group of Participants by giving written
notice of such appointment or replacement to the Secretary of the
Executive Committee.
7.4 Alternates. The ISO or a Participant or group of Participants may
designate, by a written notice given to the Secretary of the Executive
Committee, an alternate for any member of the Executive Committee
appointed by the ISO or such Participant or group of Participants. In
the absence of the member, the alternate shall have all the powers
of the member, including the power to vote.
7.5 Votes. Each voting member of the Executive Committee shall have one
vote, which may be cast in person by the member or the member's
alternate or by another person pursuant to a written proxy dated not
more than one year previous to the meeting and delivered to the
Secretary of the Executive Committee at or prior to the meeting at
which the proxy vote is cast. If a Participant which has the
individual right to appoint a member of the Executive Committee both
participates in the wholesale bulk power market and owns PTF, the
member appointed by the Participant shall be entitled to divide the
member's vote on the basis specified in a notice given by it to the
Secretary of the Committee at or prior to the meeting at which the vote
is to be cast, to reflect the Participant's market and transmission
interests. In such case the portion of the Participant member's vote
reflecting its transmission interest may be cast by the member's
alternate.
A voting member appointed by a group may divide the member's vote on
the basis specified in a notice given by it to the Secretary of the
Committee at or prior to the meeting at which the vote is to be cast,
to reflect the different positions of the members of the group.
7.6 Number of Votes Necessary for Action. The adoption of actions by the
Executive Committee shall require affirmative votes by voting members
aggregating at least 60% of the number of votes which the voting
members in attendance at a meeting at which a quorum is present are
entitled to cast. A majority of the voting members at any time
shall constitute a quorum.
7.7 Officers. At its annual meeting, the Executive Committee shall elect
from its voting members a Chair and a Vice-Chair; it shall also elect a
Secretary who need not be a member. These officers shall have the
powers and duties usually incident to such offices.
7.8 Meetings. The Executive Committee shall hold its annual meeting in
December or January at such time and place as the Chair shall designate
and shall hold other meetings in accordance with a schedule adopted by
the Executive Committee or at the call of the Chair. Any two members
may call a special meeting of the Executive Committee in the event that
the Chair shall fail to call such a meeting within three business days
following the Chair's receipt from such members of a request specifying
the subject matters to be acted upon at the meeting. Any regular or
special meeting of the Executive Committee may be conducted by means of
conference telephone or other communications equipment by means of
which all persons participating in the meeting can hear each other.
7.9 Notice of Meetings. Written notice of each meeting of the Executive
Committee shall be given to each member of the Committee and each
member of the Management Committee not less than three business days
prior to the date of the meeting. The notice shall specify the
principal subject matter expected to be acted upon at the meeting.
7.10 Notice to Members of Management Committee of Actions by Executive
Committee. Prior to the end of the fifth business day following a
meeting of the Executive Committee, the Secretary of the Executive
Committee shall give written notice to the ISO and each member of the
Management Committee of any action taken by the Executive Committee at
such meeting.
7.11 Appeal of Actions to Management Committee. The ISO or any Participant
may appeal to the Management Committee any action taken by the
Executive Committee. Such an appeal shall be taken prior to the end of
the tenth business day following the meeting of the Executive Committee
to which the appeal relates by giving to the Secretary of the
Management Committee a signed and written notice of appeal and by
mailing a copy of the notice to the ISO and each member of the
Management Committee. Pending action on the appeal by the Management
Committee, the giving of a notice of appeal as aforesaid shall suspend
the action appealed from.
SECTION 8
MARKET RELIABILITY PLANNING COMMITTEE
8.1 Organization. There shall be a Market Reliability Planning Committee
which shall have the responsibilities specified in Section 8.11. It
may provide from time to time for the creation of one or more
Functional Planning Committees to act in particular functional planning
areas and to exercise such of the Market Reliability Planning
Committee's responsibilities as it may delegate to them.
8.2 Membership. The Market Reliability Planning Committee shall be
constituted as follows: following its activation, the ISO shall have
the right to appoint a non-voting member of the Committee; each
Participant whose Voting Share equals or exceeds 3% of the aggregate
Voting Shares of all Participants shall have the right to appoint a
voting member of the Committee; the remaining Participants shall be
divided into the following five groups, with each having the right to
appoint one voting member of the Committee:
(a) One group consisting of the remaining Participants which
are municipally-owned and cooperatively-owned utilities;
(b) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in the business of owning or operating
generation facilities and selling the output of such
generation;
(c) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in a business other than the business
of owning or operating generation or PTF facilities and
selling the output of such generation;
(d) One group consisting of the remaining Participants, if
any, which (i) own PTF, (ii) are not engaged in electric
generation or distribution and do not participate in the
wholesale bulk power market, and (iii) are not
Related Persons of any other Participant; and
(e) One group consisting of the remaining Participants which
are investor-owned utilities subject to traditional rate
regulation or other Entities which do not qualify to be
included in any of the other four groups.
Notwithstanding the foregoing, any such Participant may elect to join a
different group than the one to which it would be assigned under the
foregoing provisions if this is acceptable to the members of the group
it elects to join. In the event any Participant is a Related Person of
another Participant which has the individual right to appoint a
member of the Committee, the Participant shall be represented in the
Committee by the member appointed by the Participant which is its
Related Person and shall not be assigned to any of the five groups.
8.3 Term of Members. The member of the Market Reliability Planning
Committee appointed by the ISO shall serve until replaced by the ISO.
Members of the Market Reliability Planning Committee appointed by a
Participant or group of Participants shall serve until replaced by the
Participant or Participants which appointed them or until such
Participant or Participants cease to be Participants or otherwise lose
their right to appoint the member. Appointment or replacement of a
member shall be effected by the ISO or a Participant or group of
Participants by giving written notice of such appointment or
replacement to the Secretary of the Market Reliability Planning
Committee.
8.4 Voting. Each voting member of the Market Reliability Planning
Committee shall have one vote which may be cast in person by the member
or the member's alternate or by another person pursuant to a written
proxy dated not more than one year previous to the meeting and
delivered to the Secretary of the Market Reliability Planning Committee
at or prior to the meeting at which the proxy vote is cast. If a
Participant which has the individual right to appoint a voting member
of the Market Reliability Planning Committee both participates in the
wholesale bulk power market and owns PTF, the member appointed by the
Participant shall be entitled to divide the member's vote on
the basis specified in a notice given by it to the Secretary of the
Committee at or prior to the meeting at which the vote is to be cast,
to reflect the Participant's market and transmission interests. In
such case the portion of the member's vote reflecting its transmission
interest may be cast by the member's alternate.
The voting member appointed by a group may divide the member's vote on
the basis specified in a notice given by it to the Secretary of the
Committee at or prior to the meeting at which the vote is to be cast,
to reflect the different positions of the members of the group.
The adoption of actions by the Market Reliability Planning Committee
shall require affirmative votes by voting members aggregating at least
60% of the number of votes which the members in attendance at a meeting
at which a quorum is present are entitled to cast. A majority of the
voting members at any time shall constitute a quorum.
8.5 Alternates. The ISO or a Participant or group of Participants may
designate, by a written notice given to the Secretary of the Market
Reliability Planning Committee, an alternate for the member of the
Market Reliability Planning Committee appointed by the ISO or such
Participant or group of Participants. In the absence of the member,
the alternate shall have all the powers of the member, including the
power to vote.
8.6 Officers. At its annual meeting, the Market Reliability Planning
Committee shall elect from its voting members a Chair and a Vice-Chair;
it shall also elect a Secretary who need not be a member of the
Committee. These officers shall have the powers and duties usually
incident to such offices.
8.7 Meetings. The Market Reliability Planning Committee shall hold its
annual meeting in December or January at such time and place as the
Chair shall designate and shall hold other meetings in accordance with
a schedule adopted by the Committee or at the call of the Chair. Any
two members may call a special meeting of the Market Reliability
Planning Committee in the event that the Chair shall fail to call such
a meeting within three business days following the Chair's receipt from
such members of a request specifying the subject matters to be
considered at the meeting. Any regular or special meeting of the
Market Reliability Planning Committee may be conducted by means of
conference telephone or other communications equipment by means of
which all persons participating in the meeting can hear each other.
8.8 Notice of Meetings. Written notice of each meeting of the Market
Reliability Planning Committee shall be given to each member not less
than five business days prior to the date of the meeting. The
principal subject matter expected to be acted upon at a meeting shall
be specified in the notice of the meeting whenever the meeting is not
held in accordance with the schedule adopted by the Committee.
8.9 Notice to Members of Management Committee. Prior to the end of the
fifth business day following a meeting of the Market Reliability
Planning Committee, the Secretary of the Market Reliability Planning
Committee shall give written notice to the ISO and each member of the
Management Committee of any action taken by the Market Reliability
Planning Committee at such meeting.
8.10 Appeal of Actions to Management Committee. The ISO or any Participant
may appeal to the Management Committee any action taken by the Market
Reliability Planning Committee. Such an appeal shall be taken prior to
the end of the tenth business day following the meeting of the Market
Reliability Planning Committee to which the appeal relates by giving to
the Secretary of the Management Committee a signed and written notice
of appeal and by mailing a copy of the notice to the ISO and each
member of the Management Committee. Pending action on the appeal by
the Management Committee, the giving of a notice of appeal as aforesaid
shall suspend the action appealed from.
8.11 Responsibilities. The Market Reliability Planning Committee shall be
responsible, either directly or through its Functional Planning
Committees, and in conjunction with the ISO and the Regional
Transmission Planning Committee, as appropriate, for the following:
(a) providing overall direction to, and coordination of,
joint studies of supply and demand-side resources and
environmental considerations in order to achieve the
objectives of NEPOOL;
(b) recommending to the Management Committee the NEPOOL
Objective Capability for each Power Year;
(c) periodically reviewing the procedures used to calculate
NEPOOL Installed Capability, NEPOOL Objective Capability
and NEPOOL Capability Responsibility;
(d) causing to be prepared periodic short and long term load
forecasts for use in NEPOOL studies and operations and
to meet requirements of regulatory agencies;
(e) overseeing communications and liaison between NEPOOL and
governmental authorities on power supply, environmental
and load forecasting issues;
(f) coordinating the collection and exchange of necessary
system data and future plans for use in NEPOOL planning
and to meet requirements of regulatory agencies;
(g) following appropriate studies, recommending to the
Management Committee reliability standards for the bulk
power system of NEPOOL; and
(h) coordinating the review of proposed supply and demand-
side resource plans of Participants pursuant to Section
18.4 and the submission of recommendations to the
Management Committee regarding such proposed plans.
8.12 Functional Planning Committees. The Market Reliability Planning
Committee's Functional Planning Committees shall remain subject to
policy-level direction and control by the Market Reliability Planning
Committee. Functional Planning Committees may participate in joint
studies with each other and with other NEPOOL committees or task
forces, but shall submit reports and recommendations directly to the
Management Committee only pursuant to the request of the Market
Reliability Planning Committee.
The members of each Functional Planning Committee shall be appointed in
the same manner as the members of the Market Reliability Planning
Committee, and, if requested by the ISO, shall include a non-voting
member appointed by the ISO. The Chair, Vice-Chair and Secretary of
each Functional Planning Committee shall be appointed in accordance
with procedures specified by the Market Reliability Planning
Committee.
Except as expressly directed by the Market Reliability Planning
Committee, its Functional Planning Committees shall be study, research
and deliberative bodies and shall not resolve by vote differences of
opinion as to proposed plans or other matters on which they may make
reports or recommendations. Functional Planning Committees shall
regularly report the results of their work to the Market Reliability
Planning Committee, and whenever a Functional Planning Committee is
unable to reach a consensus resolution of a policy issue, that issue
shall be reported to the Market Reliability Planning Committee.
Functional Planning Committee reports shall contain such personal
opinions and conclusions as any member may request. Where a vote of a
Functional Planning Committee is required for election of officers or
other organizational matters, the action shall be effective only upon
an affirmative vote of 60% of the voting members present at the
meeting.
8.13 Appointment of Task Forces. The Market Reliability Planning Committee
and its Functional Planning Committees shall have the authority, within
the Market Reliability Planning Committee's budget or with the approval
of the Management Committee if beyond its budget, to appoint task
forces for particular studies and to name thereto available employees
of Participants.
8.14 Consultants, Computer Time and Expenses. The Market Reliability
Planning Committee and its Functional Planning Committees shall have
the authority, within the Market Reliability Planning Committee's
budget or with the approval of the Management Committee if beyond its
budget, to retain the services of the ISO, to hire other consultants,
to procure computer time and to incur such expenses as may be
required to enable the Market Reliability Planning Committee, its
Functional Planning Committees and their task forces properly to
perform their duties.
8.15 Further Powers and Duties. The Market Reliability Planning Committee
shall have such further powers and duties as may be prescribed by the
Management Committee or as set forth in this Agreement.
8.16 Reports to Management Committee. The Market Reliability Planning
Committee shall report to the Management Committee periodically the
results of its work and such reports shall contain such alternative
programs as the Market Reliability Planning Committee may consider
appropriate. Market Reliability Planning Committee reports shall also
contain such minority opinions and conclusions as any member shall
request.
8.17 Joint Meetings With Regional Transmission Planning Committee. The
Market Reliability Planning Committee is authorized and encouraged to
hold its meetings, and to conduct studies and exercise its
responsibilities, jointly with the Regional Transmission Planning
Committee to the extent appropriate.
SECTION 9
REGIONAL TRANSMISSION PLANNING COMMITTEE
9.1 Organization. There shall be a Regional Transmission Planning
Committee which shall have the responsibilities specified in Section
9.11. It may provide from time to time for the creation of one or more
Functional Planning Committees to act in particular functional
transmission planning areas and to exercise such of the Regional
Transmission Planning Committee's responsibilities as it may delegate
to them.
9.2 Membership. The Regional Transmission Planning Committee shall be
constituted as follows: following its activation, the ISO shall have
the right to appoint a non-voting member of the Committee; each
Participant whose Voting Share equals or exceeds 3% of the aggregate
Voting Shares of all Participants shall have the right to appoint a
voting member of the Committee; the remaining Participants whose Voting
Shares are less than 3% of the aggregate Voting Shares of all
Participants shall be divided into the following five groups, with each
having the right to appoint one voting member of the Committee:
(a) One group consisting of the remaining Participants which
are municipally-owned and cooperatively-owned utilities;
(b) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in the business of owning or operating
generation facilities and selling the output of such
generation;
(c) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in a business other than the business
of owning or operating generation or PTF facilities and
selling the output of such generation;
(d) One group consisting of the remaining Participants, if
any, which (i) own PTF, (ii) are not engaged in electric
generation or distribution and do not participate in the
wholesale bulk power market, and (iii) are not
Related Persons of any other Participant; and
(e) One group consisting of the remaining Participants which
are investor-owned utilities subject to traditional
utility rate regulation or other Entities which do not
qualify to be included in any of the other four
groups.
Notwithstanding the foregoing, any such Participant may elect to join a
different group than the one to which it would be assigned under the
foregoing provisions if this is acceptable to the members of the group
it elects to join. In the event any Participant is a Related Person of
another Participant which has the individual right to appoint a
member of the Committee on the basis of its individual Voting Share,
the Participant shall be represented in the Committee by the member
appointed by the Participant which is its Related Person and shall not
be assigned to any of the five groups.
9.3 Term of Members. The member of the Regional Transmission Planning
Committee appointed by the ISO shall serve until replaced by the ISO.
Members of the Regional Transmission Planning Committee shall serve
until replaced by the Participant or Participants which appointed them
or until such Participant or Participants shall lose their status as
Participants or otherwise lose their right to appoint the member.
Appointment or replacement of a member shall be effected by the ISO or
a Participant or group of Participants by giving written notice of such
appointment or replacement to the Secretary of the Regional
Transmission Planning Committee.
9.4 Voting. Each voting member of the Regional Transmission Planning
Committee shall have one vote which may be cast in person by the member
or his alternate or by another person pursuant to a written proxy dated
not more than one year previous to the meeting and delivered to the
Secretary of the Regional Transmission Planning Committee at or prior
to the meeting at which the proxy vote is cast. If a Participant
which has the individual right to appoint a member of the Regional
Transmission Planning Committee both participates in the wholesale bulk
power market and owns PTF, the member appointed by the Participant
shall be entitled to divide the member's vote on the basis specified in
a notice given to the Secretary of the Committee at or prior to the
meeting at which the vote is to be cast, to reflect the Participant's
market and transmission interests. In such case the portion of the
member's vote reflecting its transmission interest may be cast by the
member's alternate.
The voting member appointed by a group may divide the member's vote on
the basis specified in a notice given to the Secretary of the Committee
at or prior to the meeting at which the vote is to be cast, to reflect
the different positions of the members of the group.
The adoption of actions by the Regional Transmission Planning Committee
shall require affirmative votes by voting members aggregating at least
60% of the number of votes which the members in attendance at a meeting
at which a quorum is present are entitled to cast. A majority of the
voting members at any time shall constitute a quorum.
9.5 Alternates. The ISO, or a Participant or group of Participants may
designate, by a written notice given to the Secretary of the Regional
Transmission Planning Committee, an alternate for any member of the
Regional Transmission Planning Committee appointed by the ISO or such
Participant or group of Participants. In the absence of the member,
the alternate shall have all the powers of the member, including the
power to vote.
9.6 Officers. At its annual meeting, the Regional Transmission Planning
Committee shall elect from its voting members a Chair and a Vice-Chair;
it shall also elect a Secretary who need not be a member of the
Committee. These officers shall have the powers and duties usually
incident to such offices.
9.7 Meetings. The Regional Transmission Planning Committee shall hold its
annual meeting in December or January at such time and place as the
Chair shall designate and shall hold other meetings in accordance with
a schedule adopted by the Committee or at the call of the Chair. Any
two members may call a special meeting of the Regional Transmission
Planning Committee in the event that the Chair shall fail to call such
a meeting within three business days following the Chair's receipt from
such members of a request specifying the subject matters to be
considered at the meeting. Any regular or special meeting of the
Regional Transmission Planning Committee may be conducted by means of
conference telephone or other communications equipment by means of
which all persons participating in the meeting can hear each other.
9.8 Notice of Meetings. Written notice of each meeting of the Regional
Transmission Planning Committee shall be given to each member not less
than five business days prior to the date of the meeting. The
principal subject matter expected to be acted upon at a meeting shall
be specified in the notice of the meeting whenever the meeting is not
held in accordance with the schedule adopted by the Committee.
9.9 Notice to Members of Management Committee. Prior to the end of the
fifth business day following a meeting of the Regional Transmission
Planning Committee, the Secretary of the Regional Transmission Planning
Committee shall give written notice to the ISO and each member of the
Management Committee of any action taken by the Regional Transmission
Planning Committee at such meeting.
9.10 Appeal of Actions to Management Committee. The ISO or any Participant
may appeal to the Management Committee any action taken by the Regional
Transmission Planning Committee. Such an appeal shall be taken prior
to the end of the tenth business day following the meeting of the
Regional Transmission Planning Committee to which the appeal relates by
giving to the Secretary of the Management Committee a signed and
written notice of appeal and by mailing a copy of the notice to the ISO
and each member of the Management Committee. Pending action on the
appeal by the Management Committee, the delivery of a notice of appeal
as aforesaid shall suspend the action appealed from.
9.11 Responsibilities. The Regional Transmission Planning Committee shall be
responsible, either directly or through Functional Planning Committees,
and in conjunction with the ISO and the Market Reliability Planning
Committee, as appropriate, for the following:
(a) providing overall direction to, and coordination of,
joint studies of transmission facilities and the
development of a regional transmission plan in order to
achieve the objectives of NEPOOL;
(b) overseeing communications and liaison between NEPOOL and
governmental authorities on transmission issues;
(c) coordinating the collection and exchange of necessary
system data and future plans for use in NEPOOL planning
and to meet requirements of regulatory agencies;
(d) following appropriate studies, recommending to the
Management Committee proposed reliability standards for
the bulk power system of NEPOOL;
(e) coordinating the review of proposed transmission plans
of Participants pursuant to Section 18.4 and the
submission of recommendations to the Management
Committee regarding such proposed plans; and
(f) to the extent appropriate, establishing criteria,
guidelines and methodologies to assure consistency in
monitoring and assessing conformance of Participant and
regional transmission plans to accepted reliability
criteria.
9.12 Functional Planning Committees. The Regional Transmission Planning
Committee's Functional Planning Committees shall remain subject to
policy-level direction and control by the Regional Transmission
Planning Committee. Functional Planning Committees may participate in
joint studies with each other and with other NEPOOL committees or task
forces, but shall submit reports and recommendations directly to the
Management Committee only pursuant to the request of the Regional
Transmission Planning Committee.
The members of each Functional Planning Committee shall be appointed in
the same manner as the members of the Regional Transmission Planning
Committee, and, if requested by the ISO, shall include a non-voting
member appointed by the ISO. The Chair, Vice-Chair and Secretary of
each Functional Planning Committee shall be appointed in accordance
with procedures specified by the Regional Transmission Planning
Committee.
Except as expressly directed by the Regional Transmission Planning
Committee, its Functional Planning Committees shall be study, research
and deliberative bodies and shall not resolve by vote differences of
opinion as to proposed plans or other matters on which they may make
reports or recommendations. Functional Planning Committees shall
regularly report the results of their work to the Regional Transmission
Planning Committee, and whenever a Functional Planning Committee is
unable to reach a consensus resolution of a policy issue, that issue
shall be reported to the Regional Transmission Planning Committee.
Functional Planning Committee reports shall contain such personal
opinions and conclusions as any member may request. Where a
vote of a Functional Planning Committee is required for election of
officers or other organizational matters, the action shall be effective
only upon an affirmative vote of 60% of the voting members present at a
meeting.
9.13 Appointment of Task Forces. The Regional Transmission Planning
Committee and its Functional Planning Committees shall have the
authority, within the Regional Transmission Planning Committee's budget
or with the approval of the Management Committee if beyond its budget,
to appoint task forces for particular studies and to name thereto
available employees of Participants.
9.14 Consultants, Computer Time and Expenses. The Regional Transmission
Planning Committee and its Functional Planning Committees shall have
the authority, within the Regional Transmission Planning Committee's
budget or with the approval of the Management Committee if beyond its
budget, to retain the services of the ISO, to hire other consultants,
to procure computer time and to incur such expenses as may be
required to enable the Regional Transmission Planning Committee, its
Functional Planning Committees and their task forces properly to
perform their duties.
9.15 Further Powers and Duties. The Regional Transmission Planning
Committee shall have such further powers and duties as may be
prescribed by the Management Committee or as set forth in this
Agreement.
9.16 Reports to Management Committee. The Regional Transmission Planning
Committee shall report to the Management Committee periodically the
results of its work and such reports shall contain such alternative
programs as the Regional Transmission Planning Committee may consider
appropriate. Regional Transmission Planning Committee reports shall
also contain such minority opinions and conclusions as any member shall
request.
9.17 Joint Meetings With Market Reliability Planning Committee. The
Regional Transmission Planning Committee is authorized and encouraged
to hold its meetings, and to conduct studies and exercise its
responsibilities, jointly with the Market Reliability Planning
Committee to the extent appropriate.
SECTION 10
REGIONAL MARKET OPERATIONS COMMITTEE
10.1 Organization. There shall be a Regional Market Operations Committee
which shall be responsible for establishing or approving market
operation rules and for monitoring the operation of NEPOOL supply and
demand-side resources and the wholesale bulk power market.
10.2 Membership. The Regional Market Operations Committee shall be
constituted as follows: following its activation, the ISO shall have
the right to appoint a non-voting member of the Committee; each
Participant whose Voting Share equals or exceeds 3% of the aggregate
Voting Shares of all Participants shall have the right to appoint one
voting member and each Participant whose Voting Share equals or exceeds
15% of the aggregate Voting Shares of all Participants shall have the
right, so long as such condition continues, to appoint one additional
voting member, provided that the aggregate number of members which a
Participant and its Related Persons shall have the right to appoint
shall be limited to two members; the remaining Participants shall be
divided into the following five groups, with each having the right to
appoint one voting member of the Regional Market Operations Committee:
(a) One group consisting of the remaining Participants which
are municipally-owned and cooperatively-owned
traditional utilities;
(b) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in the business of owning or operating
generation facilities and selling the output of such
generation;
(c) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in a business other than the business
of owning or operating generation or PTF facilities and
selling the output of such generation;
(d) One group consisting of the remaining Participants, if
any, which (i) own PTF, (ii) are not engaged in electric
generation or distribution and do not participate in the
wholesale bulk power market, and (iii) are not
Related Persons of any other Participant; and
(e) One group consisting of the remaining Participants which
are investor-owned utilities subject to traditional
utility rate regulation or other Entities which do not
qualify to be included in any of the other four
groups.
Notwithstanding the foregoing, any such Participant may elect to join a
different group than the one to which it would be assigned under the
foregoing provisions if this is acceptable to the members of the group
it elects to join. In the event any such Participant is a Related
Person of another Participant which has the individual right to
appoint one or two members of the Committee, the Participant shall be
represented in the Committee by the member or members appointed by the
Participant which is its Related Person and shall not be assigned to
any of the five groups.
10.3 Terms of Members. The member of the Regional Market Operations
Committee appointed by the ISO shall serve until replaced by the ISO.
Members of the Regional Market Operations Committee shall serve until
replaced by the Participant or Participants which appointed them or
until such Participant or Participants shall lose their status as
Participants or otherwise lose the right to appoint the member.
Appointment or replacement of a member shall be effected by the ISO or
a Participant or group of Participants giving written notice of such
appointment or replacement to the Secretary of the Regional Market
Operations Committee.
10.4 Voting. Each voting member of the Regional Market Operations Committee
shall have one vote, which may be cast in person by the member or his
alternate or by another person pursuant to a written proxy dated not
more than one year previous to the meeting and delivered to the
Secretary of the Regional Market Operations Committee at or prior to
the meeting at which the proxy vote is cast. If a Participant which
has the individual right to appoint a member or members of the Regional
Market Operations Committee both participates in the wholesale bulk
power market and owns PTF, the member or members appointed by the
Participant shall each be entitled to divide its vote on the basis
specified in a notice given by it to the Secretary of the Committee at
or prior to the meeting at which the vote is to be cast, to reflect the
Participant's market and transmission interests. In such case the
portion of a member's vote reflecting its transmission interest may be
cast by the member's alternate.
The voting member appointed by a group may divide the member's vote on
the basis specified in a notice given by it to the Secretary of the
Committee at or prior to the meeting at which the vote is to be cast,
to reflect the different positions of the members of the group.
The adoption of actions by the Regional Market Operations Committee
shall require affirmative votes by voting members aggregating at least
60% of the number of votes which the members in attendance at a meeting
at which a quorum is present are entitled to cast. A majority of the
voting members at any time shall constitute a quorum.
10.5 Alternates. The ISO or a Participant or group of Participants may
designate, by a written notice delivered to the Secretary of the
Regional Market Operations Committee, an alternate for any member of
the Regional Market Operations Committee appointed by the ISO or such
Participant or group of Participants. In the absence of the member,
the alternate shall have all of the powers of the member, including the
power to vote.
10.6 Officers. At its annual meeting, the Regional Market Operations
Committee shall elect from its voting members a Chair and a Vice-Chair;
it shall also elect a Secretary who need not be a member. These
officers shall have the powers and duties usually incident to such
offices.
10.7 Meetings. The Regional Market Operations Committee shall hold its
annual meeting in December or January at such time and place as the
Chair shall designate and shall hold other meetings in accordance with
a schedule adopted by the Regional Market Operations Committee or at
the call of the Chair. Any two members may call a special meeting of
the Regional Market Operations Committee in the event that the Chair
shall fail to call such a meeting within three business days following
the Chair's receipt from such members of a request specifying the
subject matters to be acted upon at the meeting. In the event of
emergency, any member may call a special meeting of the Regional Market
Operations Committee to be held forthwith. Any annual, special or
other meeting of the Regional Market Operations Committee may be
conducted by means of conference telephone or other communications
equipment by means of which all persons participating in the meeting
can hear each other.
10.8 Notice of Meetings. Written notice of each meeting of the Regional
Market Operations Committee shall be given to each member not less than
three business days prior to the date of the meeting. The notice shall
normally specify the principal subject matters expected to be acted
upon; provided, however, that no written notice shall be required
for a meeting called in the event of an emergency, although the
Secretary or the member calling the meeting shall use his or her best
efforts to notify every member of the meeting.
10.9 Notice to Members of Management Committee. Prior to the end of the
fifth business day following a meeting of the Regional Market
Operations Committee, the Secretary of the Regional Market Operations
Committee shall give written notice to the ISO and each member of the
Management Committee of any action taken by the Regional Market
Operations Committee at such meeting.
10.10 Appeal of Actions to Management Committee. The ISO or any Participant
may appeal to the Management Committee any action taken by the Regional
Market Operations Committee. Such an appeal shall be taken prior to
the end of the tenth business day following the meeting of the Regional
Market Operations Committee to which the appeal relates by giving to
the Secretary of the Management Committee a signed and written notice
of appeal and by mailing a copy of the notice to the ISO and each
member of the Management Committee. Pending action on the appeal by
the Management Committee, the filing of a notice of appeal as aforesaid
shall suspend the action appealed from.
10.11 Appointment of Task Forces. The Regional Market Operations Committee
shall have the authority, within its budget or with the approval of the
Management Committee if beyond its budget, to appoint task forces for
particular studies and may name thereto available employees of
Participants.
10.12 Consultants, Computer Time and Expenses. The Regional Market
Operations Committee shall have the authority, within its budget or
with the approval of the Management Committee if beyond its budget, to
retain the services of the ISO, to hire consultants, to procure
computer time, and to incur such expenses as may be required
to enable the Regional Market Operations Committee and its task forces
properly to perform their duties.
10.13 Responsibilities. The Regional Market Operations Committee, in
conjunction with the ISO and the Regional Transmission Operations
Committee, as appropriate, shall be responsible for the following:
(a) until the ISO is activated, supervising the scheduling
and coordination of the day-to-day operations of the
Participants' supply and demand-side resources and
transmission facilities and their arrangements with Non-
Participants;
(b) making or causing to be made, from time to time,
necessary studies and establishing or approving
dispatching procedures based thereon to assure
the reliable operation and facilitate the efficient
operation of the NEPOOL Control Area bulk power supply;
(c) performing the following: (i) coordinating studies of,
and providing information to Participants on,
maintenance schedules for the supply and demand-side
resources and transmission facilities of the
Participants, (ii) until the ISO is activated,
establishing or approving maintenance schedules for the
supply and demand-side resources and transmission
facilities of the Participants and, to the extent
necessary, standards for durations for maintenance of
the supply and demand-side resources of the
Participants, and (iii) adopting and implementing
uniform rules or procedures, until the Second Effective
Date, for determining when a generating unit's outages
for maintenance shall be approved for Scheduled Outage
Service and for determining whether the applicable
Capability for a unit to be used in determining the
amount of a Participant's Scheduled Outage Service shall
be the unit's Reserve Capability or its Temporary
Reserve Capability;
(d) until the ISO is activated, supervising the maintenance
and operation of the NEPOOL control center;
(e) to the extent appropriate to assure the reliable
operation of the bulk power supply of NEPOOL
establishing or approving reasonable standards, criteria
and rules relating to protective equipment, switching,
voltage control, load shedding, emergency and
restoration procedures, and the operation and
maintenance of supply and demand-side resources
and transmission facilities of the Participants;
(f) determining the seasonal capabilities of each electric
generating unit or combination of units in which a
Participant has an Entitlement in a uniform manner
applying generally accepted engineering principles;
(g) determining as appropriate from time to time the current
Annual Peak, Adjusted Annual Peak, Monthly Peak,
Adjusted Monthly Peak, Installed Capability
Responsibility, Operable Capability Requirements, and
obligations for Energy, Operating Reserve and AGC, of
each Participant;
(h) until the Second Effective Date, determining the
Incremental Costs and Decremental Costs for each
generating unit in which a Participant has an
Entitlement under the varying circumstances affecting
such costs;
(i) establishing or approving market operation rules
governing the submission of Bid Prices and the
determination of prices for Installed Capability,
Operable Capability, Energy, each category of Operating
Reserve and AGC, and establishing or approving
appropriate billing procedures for transactions pursuant
to this Agreement; and
(j) calculating and equitably apportioning losses incurred
in connection with Interchange Transactions.
10.14 Further Powers and Duties. The Regional Market Operations Committee
shall have such further powers and duties as may be prescribed by the
Management Committee or as set forth in this Agreement.
10.15 Development of Rules Relating to Non-Participant Supply and Demand-side
Resources. It is recognized that arrangements between Participants and
Non-Participants with respect to the Non-Participants' supply and
demand-side resources may create special problems in the application of
Sections 12 and 14. Accordingly, the Regional Market Operations
Committee shall analyze such special problems and develop appropriate
rules for reflecting such facilities in the Installed or Operable
System Capability of a Participant which enters into such an
arrangement and for the treatment of such arrangements for Energy,
Operating Reserve and AGC purposes. Upon approval by the Regional
Market Operations Committee, such rules shall supersede the provisions
of Sections 12 and 14 (and the related definitions in Section 1) to the
extent of any conflict therewith.
10.16 Joint Meetings with Regional Transmission Operations Committee. The
Regional Market Operations Committee is authorized and encouraged to
hold its meetings, and to conduct studies and exercise its
responsibilities, jointly with the Regional Transmission Operations
Committee to the extent appropriate.
SECTION 11
REGIONAL TRANSMISSION OPERATIONS COMMITTEE
11.1 Organization. There shall be a Regional Transmission Operations
Committee which shall be responsible for monitoring the operation of
NEPOOL transmission and the administration of the Tariff.
11.2 Membership. The Regional Transmission Operations Committee shall be
constituted as follows: following its activation, the ISO shall have
the right to appoint a non-voting member of the Committee; each
Participant whose Voting Share equals or exceeds 3% of the aggregate
Voting Shares of all Participants shall have the right to appoint one
voting member of the Committee; the remaining Participants whose Voting
Shares are less than 3% of the aggregate Voting Shares of all
Participants shall be divided into the following five groups, with each
having the right to appoint one voting member of the Committee:
(a) One group consisting of the remaining Participants which
are municipally-owned and cooperatively-owned
traditional utilities;
(b) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in the business of owning or operating
generation facilities and selling the output of such
generation;
(c) One group consisting of the remaining Participants which
are not subject to traditional utility rate regulation
and which are engaged in the NEPOOL Control Area
principally in a business other than the business of
owning or operating PTF or generation facilities and
selling the output of such generation;
(d) One group consisting of the remaining Participants, if
any, which (i) own PTF, (ii) are not engaged in electric
generation or distribution and do not participate in the
wholesale bulk power market, and (iii) are not
Related Persons of any other Participant; and
(e) One group consisting of the remaining Participants which
are investor-owned utilities subject to traditional
utility rate regulation or other Entities which do not
qualify to be included in any of the other four
groups.
Notwithstanding the foregoing, any such Participant may elect to join a
different group than the one to which it would be assigned under the
foregoing provisions if this is acceptable to the members of the group
it elects to join. In the event any such Participant is a Related
Person of another Participant which has the individual right to
appoint a member of the Committee, the Participant shall be represented
in the Committee by the member appointed by the Participant which is
its Related Person and shall not be assigned to any of the five groups.
11.3 Terms of Members. The member of the Regional Transmission Operations
Committee appointed by the ISO shall serve until replaced by the ISO.
Members of the Regional Transmission Operations Committee shall serve
until replaced by the Participant or Participants which appointed them
or until such Participant or Participants cease to be Participants.
Appointment or replacement of a member shall be effected by the ISO or
a Participant or group of Participants by giving written notice of such
appointment or replacement to the Secretary of the Regional
Transmission Operations Committee.
11.4 Voting. Each voting member of the Regional Transmission Operations
Committee shall have one vote, which may be cast in person by the
member or his alternate or by another person pursuant to a written
proxy dated not more than one year previous to the meeting and
delivered to the Secretary of the Regional Transmission Operations
Committee at or prior to the meeting at which the proxy vote is cast.
If a Participant which has the individual right to appoint a member of
the Regional Transmission Operations Committee both participates in the
wholesale bulk power market and owns PTF, the member appointed by the
Participant shall be entitled to divide the member's vote on the basis
specified in a notice given by it to the Secretary of the Committee at
or prior to the meeting at which the vote is to be cast, to reflect its
market and transmission interests. In such case the portion of the
member's vote reflecting its transmission interest may be cast by the
member's alternate.
The voting member appointed by a group may divide the member's vote on
the basis specified in a notice given by it to the Secretary of the
Committee at or prior to the meeting at which the vote is to be cast,
to reflect the different positions of the members of the group.
The adoption of actions by the Regional Transmission Operations
Committee shall require affirmative votes of voting members aggregating
at least 60% of the number of votes which the members in attendance at
a meeting at which a quorum is present are entitled to cast. A
majority of the voting members at any time shall constitute a
quorum.
11.5 Alternates. The ISO or a Participant or group of Participants may
designate, by a written notice delivered to the Secretary of the
Regional Transmission Operations Committee, an alternate for any member
of the Regional Transmission Operations Committee appointed by the ISO
or such Participant or group of Participants. In the absence of the
member, the alternate shall have all of the powers of the member,
including the power to vote.
11.6 Officers. At its annual meeting, the Regional Transmission Operations
Committee shall elect from its voting members a Chair and a Vice-Chair;
it shall also elect a Secretary who need not be a member. These
officers shall have the powers and duties usually incident to such
offices.
11.7 Meetings. The Regional Transmission Operations Committee shall hold
its annual meeting in December or January at such time and place as the
Chair shall designate and shall hold other meetings in accordance with
a schedule adopted by the Regional Transmission Operations Committee or
at the call of the Chair. Any two members may call a special meeting
of the Regional Transmission Operations Committee in the event
that the Chair shall fail to call such a meeting within three business
days following the Chair's receipt from such members of a request
specifying the subject matters to be acted upon at the meeting. In the
event of emergency, any member may call a special meeting of the
Regional Transmission Operations Committee to be held forthwith. Any
annual, special or other meeting of the Regional Transmission
Operations Committee may be conducted by means of conference telephone
or other communications equipment by means of which all persons
participating in the meeting can hear each other.
11.8 Notice of Meetings. Written notice of each meeting of the Regional
Transmission Operations Committee shall be given to each member not
less than three business days prior to the date of the meeting. The
notice shall normally specify the principal subject matters expected to
be acted upon; provided, however, that no written notice shall be
required for a meeting called in the event of an emergency, although
the Secretary or the member calling the meeting shall use his or her
best efforts to notify every member of the meeting.
11.9 Notice to Members of Management Committee. Prior to the end of the
fifth business day following a meeting of the Regional Transmission
Operations Committee, the Secretary of the Regional Transmission
Operations Committee shall give written notice to the ISO and each
member of the Management Committee of any action taken by the
Regional Transmission Operations Committee at such meeting.
11.10 Appeal of Actions to Management Committee. The ISO or any Participant
may appeal to the Management Committee any action taken by the Regional
Transmission Operations Committee. Such an appeal shall be taken prior
to the end of the tenth business day following the meeting of the
Regional Transmission Operations Committee to which the appeal relates
by giving to the Secretary of the Management Committee a signed and
written notice of appeal and by mailing a copy of the notice to
the ISO and each member of the Management Committee. Pending action on
the appeal by the Management Committee, the filing of a notice of
appeal as aforesaid shall suspend the action appealed from.
11.11 Appointment of Task Forces. The Regional Transmission Operations
Committee shall have the authority, within its budget or with the
approval of the Management Committee if beyond its budget, to appoint
task forces for particular studies and may name thereto available
employees of Participants.
11.12 Consultants, Computer Time and Expenses. The Regional Transmission
Operations Committee shall have the authority, within its budget or
with the approval of the Management Committee if beyond its budget, to
retain the services of the ISO, to hire consultants, to procure
computer time, and to incur such expenses as may be required
to enable the Regional Transmission Operations Committee and its task
forces properly to perform their duties.
11.13 Responsibilities. The Regional Transmission Operations Committee, in
conjunction with the ISO and the Regional Market Operations Committee,
as appropriate, shall be responsible for the following:
(a) until the ISO is activated, overseeing the scheduling
and coordination of the day-to-day operations of the
Participants' supply and demand-side resources and
transmission facilities;
(b) making or causing to be made, from time to time,
necessary studies and establishing or approving
procedures based thereon to assure the reliable
operation and facilitate the efficient operation of the
NEPOOL Control Area bulk power supply;
(c) coordinating studies of, and providing information to
Participants on, maintenance schedules for the supply
and demand-side resources and transmission facilities of
the Participants; and, until the ISO is activated,
establishing or approving procedures for scheduling the
maintenance of the supply and demand-side resources and
transmission facilities of the Participants;
(d) to the extent appropriate to assure the reliable
operation of the bulk power supply of the NEPOOL Control
Area, establishing or approving reasonable standards,
criteria and rules relating to protective equipment,
switching, voltage control, load shedding, emergency and
restoration procedures, and the operation and
maintenance of supply and demand-side resources and
transmission facilities of the Participants;
(e) establishing or approving appropriate billing procedures
for transmission service pursuant to this Agreement and
the Tariff; and
(f) until the ISO is activated, establishing procedures for,
and thereafter monitoring, the administration of the
Tariff and the reservation of transmission capacity
pursuant to the Tariff.
11.14 Further Powers and Duties. The Regional Transmission Operations
Committee shall have such further powers and duties as may be
prescribed by the Management Committee or as set forth in this
Agreement.
11.15 Joint Meetings with Regional Market Operations Committee. The Regional
Transmission Operations Committee is authorized and encouraged to hold
its meetings, and to conduct studies and exercise its responsibilities,
jointly with the Regional Market Operations Committee to the extent
appropriate.
PART THREE
MARKET PROVISIONS
SECTION 12
INSTALLED CAPABILITY AND OPERABLE CAPABILITY
OBLIGATIONS AND PAYMENTS
12.1 Obligations to Provide Installed Capability and Operable Capability.
(a) Each Participant shall have Installed System Capability during
each hour of each month at least sufficient to satisfy its
Installed Capability Responsibility for the month.
(b) Each Participant shall have Operable System Capability in each
hour at least sufficient to satisfy its Operable Capability
Requirement for such hour.
12.2 Computation of Installed Capability Responsibilities.
(a) (1) At the conclusion of each month, the Regional Market
Operations Committee shall determine each Participant's
tentative Installed Capability Responsibility in
Kilowatts for such month in accordance with the
following formula:
X = (P(A-N)+N{p})(1+T) + OTA
As used in this Section 12.2(a)(1), the symbols used in
the formula and the additional symbols defined below
have the following meanings:
X is the Participant's tentative Installed
Capability Responsibility for the month.
P is the value of the Participant's fraction for
the month as determined in accordance with the
following formula:
P = F{p}/F, wherein:
F{p} is the Participant's Adjusted Monthly
Peak for the month.
F is the aggregate for the month of the
Adjusted Monthly Peaks for all
Participants.
A is the NEPOOL Objective Capability in megawatts
for the month as fixed by the Management Committee
pursuant to Section 6.14(e).
N is the aggregate of the New Unit Adjustments for
all Participants for the month as determined by
the Regional Market Operations Committee in
accordance with Section 12.2(a)(2).
N{p} is the aggregate of the Participant's New Unit
Adjustments for the month, as determined by the
Regional Market Operations Committee, and is equal
to the aggregate of the Participant's adjustments
for each New Unit (as defined in Section 12.2(a))
included in its Installed System Capability during
the hour of the coincident peak load of the
Participants for the month. The Participant's
adjustment for each New Unit may be positive or
negative and shall be the product of (i) the
Participant's Installed Capability Entitlement in
the New Unit during the hour of the coincident
peak load of the Participants for the month, times
(ii) the New Unit Adjustment Factor applicable to
the New Unit as determined in accordance with
Section 12.2(a)(2).
OTA is the Participant's Outside Transaction
Adjustment for the month for all interfaces as
determined in accordance with Section 12.2(a)(3).
T is the Participant's Unit Availability Adjustment
Factor for the month. T may be positive or
negative and shall be determined in accordance
with the following formula:
T = (I-H) x J x R, wherein:
100
I for the Participant for the month is the
percentage which represents the weighted average
(using the Installed Capability of each
Entitlement for such month for the weighting) of
the Four Year Installed Capability Target
Availability Rates of the Installed Capability
Entitlements which are included in the
Participant's Installed System Capability during
the hour of the coincident peak load of the
Participants for the month. The Four Year Target
Availability Rate for an Installed Capability
Entitlement for any month is the average of the
monthly Target Availability Rates for the
forty-eight months which comprise the period of
four consecutive calendar years ending within the
Power Year which includes such month, as
determined on the basis of the Target Availability
Rates for each of the forty-eight months, and as
applied on a basis which is consistent with the
fuel or maturity status of the unit for each of
the forty-eight months. The Target Availability
Rates shall be those utilized by the Management
Committee in its most recent determination of
NEPOOL Objective Capability pursuant to Section
6.14(e).
H for the Participant for the month is the
percentage which represents the weighted average
(using the Installed Capability of each Installed
Capability Entitlement for such month for the
weighting) of the Four Year Actual Availability
Rates of the Installed Capability Entitlements
which are included in the Participant's Installed
System Capability during the hour of the
coincident peak load of the Participants for the
month. The Four Year Actual Availability Rate for
an Installed Capability Entitlement for any month
is the percentage which represents the average of
the amounts determined for H{1} for the four
applicable Twelve-Month Measurement Periods within
the forty-eight months which comprise the period
of four consecutive calendar years ending within
the Power Year which includes such month. A
Twelve-Month Measurement Period is a period of
twelve sequential months. For purposes of this
sequence, the first month in the four years and
the immediately succeeding months shall be
considered to follow the forty-eighth month in the
four-year period. The four applicable
Twelve-Month Measurement Periods to be used in the
determination of H{1} for an Installed Capability
Entitlement shall be the four sequential
Twelve-Month Measurement Periods out of the twelve
possible combinations which yield the highest
H{1}.
H{1} for an Installed Capability Entitlement in a unit
or combination of units for a Twelve-Month
Measurement Period is its Actual Availability
Rate. The Actual Availability Rate of an
Installed Capability Entitlement for a
Twelve-Month Measurement Period is a percentage
and shall be the greater of:
(i) the percentage of (a) the amount of
generation which could have been received
with respect to the Installed Capability
Entitlement if the unit or combination of
units had been fully available at its
full Installed Capability throughout the
Twelve-Month Measurement Priod, which is
represented by (b) the amount of
generation which was actually available
during such period, or
(ii) the average Target Availability Rate
expressed as a percentage for the
Installed Capability Entitlement for the
Twelve-Month Measurement Period less
twenty percentage points. The average
Target Availability Rate of an Installed
Capability Entitlement for a Twelve-Month
Measurement Period is a percentage and is
the average of the monthly Target
Availability Rates for the months which
comprise the Twelve-Month Measurement
Period, as determined on the basis of the
Target Availability Rates for each of the
twelve months, and as applied on a basis
which is consistent with the fuel or
maturity status of the unit for each
month in the Twelve- Month Measurement
Period. The Target Availability Rates
shall be those utilized by the Management
Committee in its most recent
determination of NEPOOL Objective
Capability pursuant to Section 6.14(e).
J for the month is the estimated percentage point
change in NEPOOL Objective Capability which would
be required as a result of a one percentage point
change in the weighted average equivalent
availability rate of the generating units in which
the Participants have Installed Capability
Entitlements. The value for J shall be adopted by
the Management Committee each time it fixes NEPOOL
Objective Capability pursuant to Section 6.14(e).
R for the month is the phase-out factor for the
month, which shall be as follows:
R=0.75 for the Power Year beginning November 1,
1997.
R=0.50 for the Power Year beginning November 1,
1998.
R=0.25 for the Power Year beginning November 1,
1999.
R=0 for the Power Year beginning November 1,
2000 and all subsequent Power Years.
(2) A New Unit Adjustment Factor for a New Unit shall be
determined to assign the effects of the New Unit on
NEPOOL Objective Capability to those Participants with
Entitlements in the New Unit. (As used in this
Section, "New Unit" has the meaning specified for that
term in Section 15.27A of the Prior NEPOOL Agreement.)
The New Unit Adjustment Factor for each New Unit for
each month shall be determined by the Regional Market
Operations Committee in accordance with the following
formula:
n = R(K{1}(c-C) + K{2}(f-F) + K{3}(m-M) + K{4}(d-D) +
K{5}(f-F)c{2})
As used in this Section 12.2(a)(2), the symbols used in
the formula have the following meanings:
R is the phase out factor as defined in Section
12.2(a)(1) above.
n is the New Unit Adjustment Factor, expressed as a
fraction, for the month for a New Unit.
c is the Winter Capability of the New Unit.
C is the Winter Capability of the Proxy Unit, which
shall be the number of Kilowatts, as determined
by the Management Committee, which would result
in the NEPOOL Objective Capability being
approximately the same if the generating units in
which the Participants have Installed Capability
Entitlements were all units possessing Proxy Unit
characteristics.
f is the equivalent forced outage rate of the New
Unit, expressed as a fraction of a year, utilized
in the determination by the Management Committee
of NEPOOL Objective Capability for the month.
F is the equivalent forced outage rate of the Proxy
Unit. F, a fraction, shall be the weighted
average equivalent forced outage rate (using the
Winter Capability of each generating unit for
such weighting) of the generating units in which
the Participants have Installed Capability
Entitlements, adjusted to compensate for the
rounding of the annual maintenance outage
requirement of the Proxy Unit.
m is the four-year average annual maintenance
outage requirement of the New Unit, expressed as
a fraction of a year. The data used to determine
m shall include the annual maintenance outage
requirements for the current Power Year and the
next three Power Years, as utilized for the New
Unit in the most recent determination by the
Management Committee of NEPOOL Objective
Capability pursuant to Section 6.14(e).
M is the annual maintenance outage requirement of
the Proxy Unit. M shall be a fraction, the
numerator of which shall be the number of weeks
(rounded to the nearest full number) that most
closely approximates the weighted four-year
average annual maintenance outage requirement
(using the Winter Capability of each generating
unit for such weighting) for the generating units
in which the Participants have Installed
Capability Entitlements, and the denominator of
which shall be 52 weeks.
d is the summer derating of the New Unit, expressed
as a fraction of the Winter Capability of the New
Unit.
D is the summer derating of the Proxy Unit. D
shall be a fraction and shall be equal to the
weighted average fractional summer derating
(using the Winter Capability of each generating
unit for such weighting) of the generating units
in which the Participants have Installed
Capability Entitlements.
K{1}, K{2}, K{3}, K{4}, and K{5}
are conversion coefficients for each of the
Summer and Winter Periods, determined by
regression analysis such that the product
for the Installed Capability of a New Unit times
its New Unit Adjustment Factor approximates the
effect on NEPOOL Objective Capability of the New
Unit.
Proxy Unit characteristics and conversion coefficients
contained in the formula shall be adopted by the
Management Committee and reviewed every five years (or
more frequently if the Management Committee determines
that exceptional circumstances require an earlier
review) and revised as necessary.
If a New Unit has unique characteristics affecting
NEPOOL Objective Capability which are not adequately
reflected in the New Unit Adjustment Factor formula, the
Management Committee shall determine for such New Unit a
New Unit Adjustment Factor which accounts for
the New Unit's unique characteristics.
The New Unit Adjustment Factor for any Restricted Unit
for which proposed plans were submitted subsequent to
November 1, 1990 for review pursuant to Section 18.4 or
its predecessor section in the Prior NEPOOL Agreement
(or, in the case of a unit with a rated capacity of
less than 5MW, for which notification was first given to
NEPOOL subsequent to November 1, 1990) and for the
Peabody Municipal Light Plant's Waters River #2 unit
shall be determined in accordance with the formula
previously specified in Section 12.2(a)(2), modified as
follows:
n = R(K{1}(c-C) + K{2}(f-F) + K{3}(m-M) + K{4}(d-D)
+K{5}(f-F)c{2}) + K{6}(2500-a)
The symbols used in the above formula, as modified,
shall have the meanings previously specified, except
that the symbols "K{6}" and "a" shall have the following
meanings:
K{6} is a scaling factor of 0.0001.
a is as follows:
for units with more than 2500 annual hours
available for operation, "a" = 2500,
for units with annual hours available for
operation between 500 and 2500, inclusive, "a" =
annual hours available for operation, and
for units with annual hours available for
operation less than 500 hours, "a" = -7500;
provided, however, that a Participant may elect to
avoid, in whole or part, the effect on its Installed
Capability Responsibility of a Restricted Unit's
availability being limited to 2500 hours or less a year
by agreeing to leave unfilled a portion of its
dispatchable load allocation in accordance with rules
adopted by the Regional Market Operations Committee.
(3) An Outside Transaction Adjustment (OTA) shall be
determined for each Participant for each month to assign
to the Participant the net impact on reliability in the
NEPOOL Control Area of its uses in the month of each
interface with a neighboring control area other than the
HQ Interconnection which is addressed in the definitions
in Part I through the use of transfer credits and
related adjustments. When the Management Committee
determines the NEPOOL Objective Capability for the
month, it reduces the required NEPOOL Objective
Capability by taking into account the reliability
benefits of available transmission capacity in
interfaces with these neighboring control areas. If the
Participant engages in transactions across the
interfaces ("External Transactions"), the result is an
increase or decrease in the reliability benefits to the
entire region of such interfaces. As a result, in order
to maintain the same level of reliability in the NEPOOL
Control Area, the minimum required NEPOOL Installed
Capability must be increased or decreased, as
appropriate. The OTA is designed so that any such
increases or decreases in the minimum required NEPOOL
Installed Capability which result from External
Transactions are assigned to the Participants engaged in
such Transactions. To calculate the OTA, the
External Transactions are divided into two broad types
of Transactions: (1) Transactions that were entered into
prior to December 1, 1996 with the New York Power
Authority (NYPA) to purchase preference power
produced by the Niagara and St. Lawrence hydroelectric
projects or by Vermont utilities with Hydro-Quebec and
NYPA to import up to 105 megawatts during the May
through October time period and 140 megawatts during the
November through April time period over the New
York PV-20 line (collectively, "Grandfathered Imports");
and (2) all other External Transactions ("Other External
Transactions").
At the conclusion of each month, the System Operator
shall identify all of the Participants that engaged in
Grandfathered Imports and Other External Transactions
for the month. For each Participant, the System
Operator shall determine an OTA in accordance with the
following formula:
OTA = [OC{g }x (GI{i}/GI)] + [OC{o }x (IP{i}/NP)] -
[OC{o} x (XP{i}/NP)], wherein
OTA is the Participant's Outside Transaction
Adjustment for the month;
OC{g }is the increase in NEPOOL Objective Capability
for the month in Kilowatts that would have
resulted, from the Grandfathered Imports, if
there were no Other External Transactions for the
month;
GI{i }is the amount in Kilowatts of the Participant's
Grandfathered Imports for the month that qualify
as Installed Capability Entitlements for the
Participant;
GI is the aggregate in Kilowatts of all
Participants' Grandfathered Imports for the month
that qualify as Installed Capability
Entitlements;
OC{o }is the increase, if any, in NEPOOL Objective
Capability for the month in Kilowatts that
resulted, after taking into account Grandfathered
Imports, from the net imports of all Participants
that were net importers in the month under Other
External Transactions, minus the net exports of
all Participants that were net exporters for the
month under Other External Transactions;
IP{i }is the amount, if any, in Kilowatts of Installed
Capability of the Participant's net imports for
the month under Other External Transactions;
NP is the aggregate in Kilowatts for the month for
all Participants that were net importers under
Other External Transactions of their net imports
of Installed Capability under Other External
Transactions, minus the aggregate in Kilowatts
for the month for all Participants that were net
exporters under Other External Transactions of
their net exports of Installed Capability
Entitlements under Other External Transactions;
and
XP{i }is the amount, if any, in Kilowatts of Installed
Capability of the Participant's net exports for
the month under Other External Transactions.
If NP is zero or negative for a month, the second and
third bracketed terms, which both relate to OC{o}, shall
be equal to zero and the Participant's OTA for the month
shall be affected only by its Grandfathered Imports, if
any.
(b) The tentative Installed Capability Responsibilities of the
Participants for any month, as determined in accordance with
Section 12.2(a), shall be adjusted in accordance with this
Section 12.2(b) in the event the value of H for any Participant
for any of the Twelve-Month Measurement Periods applicable to
the Participant for the month is increased in accordance with
Section 12.2(a) because of the application of paragraph (ii) of
the definition of H{1}. In such event the Regional Market
Operations Committee shall determine each Participant's
tentative Installed Capability Responsibility for the month with
and without the application of said paragraph (ii). The
difference between the sum of all Participants' tentative
Installed Capability Responsibilities, with and without the
application of said paragraph (ii) for the month, shall be added
to the tentative Installed Capability Responsibilities of the
Participants, as determined in accordance with Section 12.2(a),
in proportion to said tentative Installed Capability
Responsibilities, thereby establishing each Participant's
adjusted tentative Installed Capability Responsibility for the
month.
(c) For each month, the Regional Market Operations Committee shall
determine the sum of all Participants' adjusted tentative
Installed Capability Responsibilities, as initially determined
in accordance with Section 12.2(a) and as adjusted in
accordance with Section 12.2(b), if Section 12.2(b) is
applicable for such month. If the sum is less than, or equal
to, the minimum NEPOOL Installed Capability during the month,
then the adjusted tentative Installed Capability Responsibility
as determined pursuant to Section 12.2(a) or 12.2(b), whichever
is applicable, for each Participant is the final Installed
Capability Responsibility for each Participant. If the sum is
greater than such minimum NEPOOL Installed Capability, then each
Participant's final Installed Capability Responsibility shall be
its adjusted tentative Installed Capability Responsibility
as determined pursuant to Section 12.2(a) or 12.2(b), whichever
is applicable, multiplied by the ratio of the minimum NEPOOL
Installed Capability during the month to the sum of the adjusted
tentative Installed Capability Responsibilities for the month.
(d) It is recognized that the treatment of fuel conversions, dual
fuel units, immature units, new Installed Capability
Entitlements, cogeneration and small power-producing facilities,
Unit Contracts and other contract arrangements, units with
unusual maintenance cycles, and various other matters can result
in special problems in the determination of Unit Availability
Adjustment Factors and New Unit Adjustments. Accordingly, the
Regional Market Operations Committee shall analyze such special
problems and develop appropriate market operation rules to be
applied in taking such matters into account in the determination
of Unit Availability Adjustment Factors and New Unit
Adjustments.
12.3 Computation of Operable Capability Requirements.
For each hour, the Regional Market Operations Committee shall determine
each Participant's Operable Capability Requirement in Kilowatts in
accordance with the following formula:
OP{p} = EL{p} + OR{p}
As used in this Section 12.3, the symbols used in the formula have the
following meanings:
OP{p} is the Participant's Operable Capability Requirement for
the hour.
EL{p} is the Participant's Electrical Load during the hour.
OR{p} is the amount (in Kilowatts) of Operating Reserve which
the Participant was required to provide during the hour,
as determined in accordance with Section 14.1(b).
12.4 Bids to Furnish Installed Capability or Operable Capability. Each
Participant shall submit to or have on file with the System Operator,
in accordance with the market operation rules approved by the Regional
Market Operations Committee, one or more bids specifying the Bid Price
and Kilowatt amount at which it will furnish any and all surplus
Installed System Capability for a month or Operable System Capability
for an hour through NEPOOL to other Participants. If no bid is
submitted for a month for any surplus Installed System Capability or
for any hour for any surplus Operable System Capability, the Bid Price
for any such surplus for which there are no bids shall be deemed to be
zero.
12.5 Consequences of Deficiencies in Installed Capability Responsibility.
(a) At the conclusion of each month, the System Operator shall
determine whether each Participant has satisfied its Installed
Capability Responsibility obligation for the month. If the
minimum monthly Installed System Capability of a Participant
during the month was less than its Installed Capability
Responsibility, the number of Kilowatts of its deficiency shall
be computed and the Participant shall be deemed to purchase from
other Participants through NEPOOL Kilowatts of surplus Installed
System Capability equal to the amount of its deficiency and
shall pay to NEPOOL for the month any applicable market-based
charges assessed pursuant to Section 19.2 plus the product of
its total Kilowatts of deficiency and the Installed Capability
Clearing Price for the month determined in accordance with
Section 12.5(b). For purposes of this Section 12, the minimum
monthly Installed System Capability of a Participant for a month
is the Participant's lowest Installed System Capability for any
hour during the month. Retirements made on the last day of any
month shall not be deducted from Installed System Capability for
that month.
(b) At the end of each month, the System Operator shall determine
the Installed Capability Clearing Price for the month as
follows:
(i) The System Operator shall determine the aggregate
Kilowatt shortage of Installed System Capability for
the month for all Participants that did not satisfy
their Installed Capability Responsibilities for that
month.
(ii) The System Operator shall rank in the order of lowest to
highest Bid Price all Bid Prices received from
Participants having excess Installed System Capability
for the month.
(iii) For each Participant, its Installed System Capability
with the lowest Bid Prices shall be deemed to have been
furnished first, to the extent required, to meet its
Installed Capability Responsibility. Any remainder
starting with the lowest Bid Prices shall be deemed to
have been furnished, to the extent required, to other
Participants under this Agreement to meet their
shortages of Installed System Capability for the
month.
(iv) The Installed Capability Clearing Price for the month
shall equal the highest Bid Price for Installed System
Capability that is deemed in accordance with Section
12.5(b)(iii) to have been furnished to another
Participant for the month.
12.6 Consequences of Deficiencies in Operable Capability Requirements.
(a) For each hour, the System Operator shall determine whether each
Participant has satisfied its Operable Capability Requirement
obligation for that hour. If the minimum Operable System
Capability of a Participant during any hour was less than its
Operable Capability Requirement, the number of Kilowatts of its
deficiency shall be computed and the Participant shall be deemed
to purchase from other Participants through NEPOOL Kilowatts of
surplus Operable System Capability equal to the amount of its
deficiency and shall pay for the hour any applicable uplift
charge assessed under Section 14.15 and any applicable
market-based charges assessed pursuant to Section 19.2 plus the
product of its Kilowatt deficiency for the hour and the Operable
Capability Clearing Price for the hour determined in accordance
with Section 12.6(b). The minimum Operable System Capability of
a Participant for an hour is equal to the Participant's lowest
Operable System Capability at any time during the hour.
(b) For each hour, the System Operator shall determine the Operable
Capability Clearing Price as follows:
(i) The System Operator shall determine the aggregate
Kilowatt shortage of Operable System Capability for the
hour for all Participants that did not satisfy their
Operable Capability Requirements in that hour.
(ii) The System Operator shall rank in the order of lowest to
highest Bid Price all Bid Prices received from
Participants having excess Operable System Capability
for the hour.
(iii) For each Participant, its Operable System Capability
with the lowest Bid Prices shall be deemed to have been
furnished first, to the extent required, to meet its
Operable Capability Requirement. Any remainder
starting with the lowest Bid Prices shall be deemed to
have been furnished, to the extent required, to other
Participants under this Agreement to meet their
shortages of Operable System Capability for that hour.
(iv) The Operable Capability Clearing Price for the hour
shall be equal to the highest Bid Price for Operable
System Capability that is deemed in accordance with
Section 12.6(b)(iii) to have been furnished to another
Participant in the hour.
12.7 Payments to Participants Furnishing Installed Capability and Operable
Capability.
(a) Participants that are deemed pursuant to Section 12.5 to furnish
any surplus in their Installed System Capability to other
Participants shall receive therefor their pro rata shares on a
Kilowatt basis of all payments made by Participants under
Section 12.5, excluding any applicable market-based charges
assessed pursuant to Section 19.2. If two or more Participants
with excess Installed System Capability have bid Kilowatts at
the Installed Capability Clearing Price, but not all the excess
Installed System Capability bid at such price is required to
meet shortages of Installed System Capability, then the excess
Installed System Capability bid at the Installed Capability
Clearing Price that each such Participant shall be deemed to
have furnished shall be the Kilowatts of excess Installed System
Capability bid by the Participant at that price multiplied by
the ratio of (i) the total Kilowatts of excess Installed System
Capability bid at the Installed Capability Clearing Price needed
to meet the shortages to (ii) the total Kilowatts of excess
Installed System Capability bid by all Participants at the
Installed Capability Clearing Price.
(b) Participants that are deemed pursuant to Section 12.6 to furnish
any surplus in their Operable System Capability to other
Participants shall receive therefor their pro rata shares on a
Kilowatt basis of all payments made by Participants under
Section 12.6, excluding any applicable uplift charges assessed
under Section 14.15 and any applicable market-based charges
assessed pursuant to Section 19.2. If two or more Participants
with excess Operable System Capability in an hour have bid
Kilowatts at the Operable Capability Clearing Price, but not all
the excess Operable System Capability bid at such price is
required to meet shortages of Operable System Capability, then
the excess Operable System Capability bid at the Operable
Capability Clearing Price that each such Participant shall be
deemed to have furnished shall be the Kilowatts of excess
Operable System Capability bid by the Participant at that price
multiplied by the ratio of (i) the total Kilowatts of excess
Operable System Capability bid at the Operable Capability
Clearing Price needed to meet the shortages to (ii) the
Kilowatts of excess Operable System Capability bid by all
Participants at the Operable Capability Clearing Price.
SECTION 13
OPERATION, GENERATION, OTHER RESOURCES,
AND INTERRUPTIBLE CONTRACTS
13.1 Maintenance and Operation in Accordance with Good Utility Practice.
Each Participant shall, to the fullest extent practicable, cause all
generating facilities and other resources owned or controlled by it to
be designed, constructed, maintained and operated in accordance with
Good Utility Practice.
13.2 Central Dispatch. Subject to the following sentence, each Participant
shall, to the fullest extent practicable, subject all generating
facilities and other resources owned or controlled by it to central
dispatch by the System Operator; provided, however, that each
Participant shall at all times be the sole judge as to whether or not
and to what extent safety requires that at any time any of such
facilities will be operated at less than full capacity or not at all.
Each Participant may remove from central dispatch a generating facility
or other resources owned or controlled by it if and to the extent such
removal is permitted by rules and standards approved by the Management
Committee.
13.3 Maintenance and Repair. Each Participant shall, to the fullest extent
practicable: (a) cause generating facilities and other resources owned
or controlled by it to be withdrawn from operation for maintenance and
repair only in accordance with maintenance schedules reported to and
published by the System Operator from time to time in accordance with
procedures established or approved by the Regional Market Operations
Committee, (b) restore such facilities to good operating condition with
reasonable promptness, and (c) accelerate or delay maintenance and
repair at the reasonable request of the System Operator in accordance
with market operation rules approved by the Regional Market Operations
Committee.
13.4 Objectives of Day-to-Day System Operation. 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:
(a) satisfy the NEPOOL Control Area's Operating Reserve
requirements, including the proper distribution of those
Operating Reserves;
(b) satisfy the Automatic Generation Control requirements of
the NEPOOL Control Area; and
(c) 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.
13.5 Satellite Membership. Each Participant which is responsible for the
operation of transmission facilities rated 69 kV or above in the NEPOOL
Control Area or generating units and other resources which are subject
to central dispatch by NEPOOL, or which is responsible for implementing
voltage reduction and load shedding procedures in the NEPOOL Control
Area, shall become a member of the appropriate satellite dispatching
center; provided that by mutual agreement among the affected
Participants and the appropriate satellite, a Participant may be
excused from joining the satellite if it has arranged with a satellite
member to assume responsibility to the satellite for its facilities or
obligations.
SECTION 14
INTERCHANGE TRANSACTIONS
14.1 Obligation for Energy, Operating Reserve and Automatic Generation
Control.
(a) Each Participant shall have for each hour an Energy obligation
equal to its Electrical Load plus the kilowatthours delivered by
such Participant pursuant to Firm Contracts or System Contracts
to other Participants for resale as appropriate in accordance
with Section 14.7(a), together with any associated electrical
losses.
(b) Each Participant shall have for each hour Operating Reserve
obligations equal to its share of the quantity of each category
of Operating Reserve required for the NEPOOL Control Area in the
hour.
Subject to adjustment pursuant to Section 14.6, a Participant's
share of each category of Operating Reserve required for any
hour shall be determined in accordance with the following
formula:
OR{p}=SA{p} + [(OR-SA) (EL{p}/EL)], wherein
OR{p} is the Participant's share of that category of
Operating Reserve for the hour.
SA{p} is the number of Kilowatts, if any, of that
category of Operating Reserve for the hour that
the Regional Market Operations Committee
determines should be assigned specifically to
such Participant and not be shared by all
Participants.
OR is the aggregate number of Kilowatts of that
category of Operating Reserve determined by the
System Operator in accordance with the directions
of the Regional Market Operations Committee to be
required for the NEPOOL Control Area for the
hour that is not assigned to Non-Participants.
SA is the aggregate number of Kilowatts of that
category of Operating Reserve for the hour that
the Regional Market Operations Committee
determines should not be shared by all
Participants, but not including Operating Reserve
assigned to Non-Participants.
EL{p} is the Participant's Electrical Load for the
hour.
EL is the sum of EL{p} for all Participants.
(c) Each Participant shall have at all times an AGC obligation equal
to its share of AGC required for the NEPOOL Control Area for the
hour, as determined in accordance with the following formula:
AGC{p} = AGC (EL{p}/EL), wherein
AGC{p} is the Participant's share of AGC for the hour.
AGC is the total amount of AGC determined by the
System Operator in accordance with market
operation rules approved by the Regional
Market Operations Committee to be required for
the NEPOOL Control Area for the hour that is not
assigned to Non-Participants.
EL{p} and EL are as defined in Section 14.1(b).
14.2 Obligation to Bid or Schedule, and Right to Receive Energy, Operating
Reserve and Automatic Generation Control.
(a) A Participant which has Energy Entitlements shall submit
to or have on file with the System Operator, in
accordance with the market operation rules approved by
the Regional Market Operations Committee, one or
more bids for the Energy Entitlements for which the
Participant is permitted to bid specifying the Bid Price
at which it will furnish Energy through NEPOOL to other
Participants under this Agreement or to Non-Participants
for ancillary services under the Tariff, except to the
extent such Entitlements are scheduled by the
Participant consistent with Section 14.2(d).
(b) A Participant which has Operating Reserve Entitlements
or AGC Entitlements shall also submit to or have on file
with the System Operator, in accordance with the market
operation rules approved by the Regional Market
Operations Committee, one or more bids for each such
unit for which the Participant is permitted to bid
specifying the Bid Prices at which it will furnish
10-Minute Spinning Reserve, 10-Minute Non-Spinning
Reserve, 30-Minute Operating Reserve and/or AGC
through NEPOOL to other Participants under this
Agreement or to Non-Participants for ancillary services
under the Tariff, except to the extent such Entitlements
are scheduled by the Participant consistent with
Section 14.2(d). Prior to the Third Effective Date,
Participants' rights and obligations to submit bids for
Operating Reserve Entitlements in 10-Minute Spinning
Reserve shall be limited to Entitlements in
hydroelectric generating units and pumped storage
hydroelectric generating units.
(c) Except as emergency circumstances may result in the
System Operator requiring load curtailments by
Participants, each Participant shall be entitled to
receive from the other Participants (or from the service
made available from Non-Participants pursuant to
arrangements entered into under Section 14.6) such
amounts, if any, of Energy, Operating Reserve, and AGC
as it requires and Non-Participants shall be entitled to
receive from Participants the amount of ancillary
services to which they are entitled pursuant to the
Tariff. If, for any hour, load curtailments are
required, the amount that Participants and Non-
Participants with shortages are entitled to receive
shall be proportionally reduced by the System Operator
in a fair and non-discriminatory manner in light of the
circumstances.
(d) All Bid Prices for Entitlements in a generating unit or
units shall be submitted in accordance with market
operation rules approved by the Regional Market
Operations Committee. If a Bid Price is not submitted
for any such Entitlement, the Bid Price shall be deemed
to be zero. For a generating unit in which there are
multiple Entitlement holders, only one Participant shall
be permitted to submit Bid Prices for Energy,
Operating Reserve and/or AGC Entitlements for such unit
or to direct the scheduling of the unit for any
Scheduled Dispatch Period. The Entitlement holders in
each unit with multiple Entitlement holders shall
designate a single Participant that will be permitted to
submit Bid Prices and/or to direct the scheduling of the
unit. In the event that more than one Participant is
designated, or if the Entitlement holders do not
designate a single Participant, then Bid Prices for the
unit shall be based on its replacement cost of fuel,
which shall be furnished to the System Operator by the
Participant responsible for furnishing such information
as of December 1, 1996. Further, any schedules for the
unit will be submitted to the System Operator by such
Participant. Nothing in this Agreement shall affect the
rights of any Entitlement holder under the contractual
arrangements among such Entitlement holders relating to
the unit.
Prior to the Third Effective Date, Bid Prices must be
submitted for the next Scheduled Dispatch Period for all
Energy, Operating Reserve and AGC Entitlements in
generating unit or units and rights to receive
Energy Entitlements pursuant to Firm Contracts or System
Contracts which may be sold in accordance with Section
14.7(a) no later than noon on the preceding day or such
later time as specified in the market operation rules
approved by the Regional Market Operations Committee.
On and after the Third Effective Date, such Bid Prices
shall be submitted for each hour of the day and the
notice for such Bid Prices shall be reduced to one hour
or such shorter time as the System Operator determines
from time to time is practical while maintaining
reliability and meeting its other obligations to the
Participants, except that such notice shall be longer
than one hour if and to the extent that the System
Operator reasonably determines that such notice is the
shortest notice that is technically feasible at that
time to maintain reliability and meet its other
obligations to the Participants. The System Operator
shall notify the Participants following its receipt of
all Bid Prices of the expected dispatch schedule for the
next Scheduled Dispatch Period. The System Operator
shall reduce the notice required for Bid Prices and the
applicable Scheduled Dispatch Period to the minimum time
technically and practically feasible while maintaining
reliability and meeting its other obligations to the
Participants.
Energy, Operating Reserve and/or AGC Entitlements in a
generating unit or units may also be scheduled directly
by the Participants permitted to submit Bid Prices for
such Entitlements, but only in accordance with
this Section 14.2(d) and market operation rules approved
by the Regional Market Operations Committee consistent
herewith. Subject to the right of the System Operator
to direct changes to schedules in order to ensure
reliability in the NEPOOL Control Area or any
neighboring control area, a Participant permitted to bid
its Energy, Operating Reserve, and/or AGC Entitlements
in a generating unit or units, or required to
make Energy deliveries, may submit an hour-to-hour
schedule for the operation or dispatch of such
Entitlements during a Scheduled Dispatch Period on or
before the time that Bid Prices are required to be
submitted for such period. In addition, prior to the
Third Effective Date, a Participant permitted to bid a
unit may submit a short-notice schedule for the
operation or dispatch of any or all of the Energy
available from such unit during the current and
subsequent Scheduled Dispatch Period following the time
that the System Operator notifies the appropriate
Participants of their expected Entitlement commitments
for that Scheduled Dispatch Period; provided that, for
each such short-notice schedule, the Participant has not
been advised by the System Operator that the
Entitlements covered by such schedule are expected to be
used during the Scheduled Dispatch Period to meet the
region's Energy, Operating Reserve and/or AGC
requirements, and provided further that the Participant
short-notice schedule is only to facilitate transactions
during such period from resources or to load located
outside the NEPOOL Control Area; and provided further
that such notice is furnished at least one hour in
advance of the start of the transaction. In addition, a
Participant may, on such same short notice, schedule
System Contracts with Non-Participants from resources or
to load located outside of the NEPOOL Control Area.
14.3 Amount of Energy, Operating Reserve and Automatic Generation Control
Received or Furnished.
(a) For purposes of Sections 14.4, 14.5, and 14.8, the amount of
Energy which a Participant is deemed to receive or furnish in
any hour shall be the amount of its Adjusted Net Interchange.
If the Adjusted Net Interchange is negative, the Participant
shall be deemed to be receiving Energy in the hour. If the
Adjusted Net Interchange is positive, the Participant shall be
deemed to be furnishing Energy in the hour.
(b) For purposes of Sections 14.4, 14.5, and 14.9, prior to the
Third Effective Date: the amount of each category of Operating
Reserve which a Participant is deemed to receive in any hour is
the Kilowatts of such Operating Reserve assigned to the
Participant for the hour under Section 14.1(b) less any
Kilowatts provided in the hour by the Participant in accordance
with the market operation rules approved by the Regional Market
Operations Committee to meet any Operating Reserve requirements
that were specifically assigned to it and not shared by all
Participants; the amount of Operating Reserve of each category
that the Participant is deemed to have furnished under the
Agreement in the hour is the amount of such Operating Reserve
designated by the System Operator to be provided in the hour by
the Participant's applicable Operating Reserve Entitlements,
minus any Kilowatts used in the hour by the Participant in
accordance with the market operation rules to meet any Operating
Reserve requirements that were specifically assigned to it and
not shared by all Participants. For purposes of Sections 14.4,
14.5, and 14.9, on and after the Third Effective Date, the
amount of each category of Operating Reserve which a Participant
is deemed to have received or furnished in any hour is the
difference between the Kilowatts of such Operating Reserve
assigned to the Participant for the hour under Section 14.1(b)
and the Kilowatts of such Operating Reserve designated by the
System Operator to be provided in the hour by the Participant's
applicable Operating Reserve Entitlements.
(c) For purposes of Sections 14.4, 14.5, and 14.10, prior to the
Third Effective Date, the amount of AGC which a Participant is
deemed to have received in an hour is the AGC assigned to the
Participant for the hour under Section 14.1(c), and the amount a
Participant is deemed to have furnished in the hour is the
AGC designated by the System Operator to be provided in the hour
by the Participant's AGC Entitlements. For purposes of Sections
14.4, 14.5, and 14.10, on and after the Third Effective Date,
the amount of AGC which a Participant is deemed to have received
or furnished in an hour is the difference between the AGC
assigned to the Participant for the hour under Section 14.1(c)
and the AGC designated by the System Operator to be provided in
the hour by the Participant's AGC Entitlements.
14.4 Payments by Participants Receiving Energy Service, Operating Reserve
and Automatic Generation Control.
(a) For every hour in which a Participant's Adjusted Net Interchange
is negative, the number of megawatthours of its Energy
deficiency shall be computed and the Participant shall pay for
the hour the product of its total megawatthours of deficiency
and the Energy Clearing Price applicable for the hour as
determined in accordance with Section 14.8, together with any
uplift charges assessed to the Participant under Sections 14.14
or 14.15 and any applicable market-based charges assessed
pursuant to Section 19.2.
(b) For every hour in which a Participant is deemed to receive
Operating Reserve of any category in accordance with Section
14.3(b), the number of Kilowatts it is deemed to receive for the
hour in each category shall be computed. The Participant shall
pay therefor for the hour any applicable uplift charge assessed
under Section 14.15 and any applicable market-based charges
assessed pursuant to Section 19.2 plus the product of (i) the
aggregate amount paid to Participants for that category of
Operating Reserve for the hour pursuant to Section 14.5(b)
and (ii) a fraction of which the numerator is the Kilowatts of
that category of Operating Reserve deemed under Section 14.3(b)
to have been received by the Participant for the hour and the
denominator is the aggregate Kilowatts of that category of
Operating Reserve deemed under Section 14.3(b) to have been
received by all Participants for the hour.
(c) For every hour in which a Participant is deemed under Section
14.3(c) to have received AGC, the amount it is deemed to receive
shall be computed and the Participant shall pay therefor any
applicable uplift charge assessed under Section 14.15 and any
applicable market-based charges assessed pursuant to Section
19.2 plus the product of (i) the aggregate amount paid to
Participants for AGC for the hour pursuant to Section 14.5(c)
and (ii) a fraction of which the numerator is the AGC the
Participant is deemed under Section 14.3(c) to have received for
the hour and the denominator is the aggregate amount of AGC all
Participants are deemed under Section 14.3(c) to have received
for the hour.
14.5 Payments to Participants Furnishing Energy Service, Operating Reserve,
and Automatic Generation Control.
(a) Subject to the provisions of Section 14.12, a Participant that
is deemed in an hour to furnish Energy service to other
Participants pursuant to Section 14.3, or to Non-Participants
for ancillary services under the Tariff or pursuant to
arrangements entered into under Section 14.6, shall receive for
each megawatthour furnished by it the Energy Clearing Price for
the hour determined in accordance with Section 14.8 or the Bid
Price for that megawatthour, if higher than the Energy Clearing
Price and the unit is either within the Energy Clearing Price
Block (as defined in Section 14.8(c)) or is operated out of
merit if such higher Bid Price is appropriately paid pursuant to
market operation rules governing out-of-merit generation
approved by the Regional Market Operations Committee. In
addition, to the extent that the System Operator reduces Energy
production from a generating unit or units in order to provide
VAR support, Participants with Entitlements in such unit or
units may receive their lost opportunity costs if and to the
extent provided for by market operation rules approved by the
Regional Market Operations Committee.
(b) A Participant that is deemed in an hour to furnish Operating
Reserve to other Participants pursuant to Section 14.3(b), or to
Non-Participants for ancillary services under the Tariff, shall
receive for each Kilowatt of each category of Operating Reserve
furnished by it the applicable Operating Reserve Selling
Price as defined and determined in accordance with Section 14.9
or the Bid Price to provide such Kilowatt, if higher than the
Operating Reserve Selling Price for the hour.
(c) A Participant that is deemed in an hour to furnish AGC to other
Participants pursuant to Section 14.3(c), or to Non-Participants
for ancillary services under the Tariff, shall receive therefor
the sum of (i) the AGC Clearing Price for the hour as defined
and determined in accordance with Section 14.10 times the level
and duration of AGC ramping which was actually provided by the
Participant's AGC Entitlements, and (ii) for each of the
Participant's AGC Entitlements that the System Operator
designated in the hour for AGC, an AGC reservation payment
calculated as the product of (A) the AGC Clearing Price in
effect for the hour, times (B) the AGC Ramp Rate for the
Entitlement, times (C) the portion of the hour during which the
System Operator had designated the Entitlement for AGC.
14.6 Energy Transactions with Non-Participants.
(a) The Management Committee is authorized to enter into contracts
on behalf of and in the names of all Participants (i) with power
pools or other entities in one or more other control areas to
purchase or furnish emergency Energy (and related services) that
is available for the System Operator to schedule in order to
ensure reliability in the NEPOOL Control Area or neighboring
control areas, and (ii) with Non-Participants pursuant to which
ancillary services will be provided by the Participants pursuant
to the Tariff. The terms of any such contractual arrangement
shall not require the furnishing of emergency service to
any other control area until the service needs of all
Participants have been provided for with the least expensive
resources practicable. Energy purchased in any hour from Non-
Participants under a contract entered into pursuant to this
Section 14.6(a) shall be deemed to be furnished to, and paid for
by, Participants entitled to or requiring such Energy in the
hour pursuant to this Section 14 at the higher of the Energy
Clearing Price for the hour or the price paid to the Non-
Participant for the Energy.
(b) The Regional Market Operations Committee is authorized to
provide for the day-to-day scheduling through the System
Operator of the HQ Phase II Firm Energy Contract, in accordance
with the HQ Use Agreement, as if the Contract were a contract
covering Energy transactions with a Non-Participant entered
into pursuant to Section 14.6(a). The HQ Phase II Firm Energy
Contract shall not be deemed a Firm Contract for purposes of
this Agreement. Energy received in an hour from Hydro-Quebec
pursuant to the HQ Energy Banking Agreement, and Energy
purchased in any hour from Hydro-Quebec pursuant to the HQ Phase
II Firm Energy Contract or any other HQ Contract shall be
deemed to be Energy furnished to each Participant entitled to
such Energy for the hour in the amount reflected for the
Participant in the System Operator's scheduling of Energy
deliveries in the hour from Hydro-Quebec; except that
emergency Energy received from Hydro-Quebec under the HQ
Interconnection Agreement shall be deemed to be Energy provided
to (and shall be paid for by) Participants requiring such
emergency Energy in the hour. The System Operator shall
schedule such Energy deliveries to accommodate, to the
maximum extent possible, the schedule of Energy deliveries from
Hydro-Quebec requested by the Participant. The Participants
deemed to have received such Energy shall pay therefor the
higher of the Energy Clearing Price (together with any
applicable uplift charges under Sections 14.14 and/or 14.15 and
any applicable market-based charges assessed pursuant to Section
19.2) or the price paid to Hydro-Quebec for the Energy (or in
the case of Energy received under the HQ Energy Banking
Agreement, the price paid for the related Energy deliveries to
Hydro-Quebec under the Agreement and any amount payable to
Hydro-Quebec with respect to the transaction).
14.7 Participant Purchases Pursuant to Firm Contracts and System Contracts.
(a) For Firm Contracts and System Contracts, the treatment of
Installed Capability, Operable Capability, Energy, Operating
Reserve and AGC between the seller and the purchaser in
determining their respective responsibilities and Entitlements
shall be as agreed between the parties and reported to the
System Operator in accordance with market operation rules
approved by the Regional Market Operations Committee.
(b) In the event a Participant has a right to receive Operable
Capability, Energy, Operating Reserve and/or AGC from a Non-
Participant under a System Contract, or a Firm Contract, and the
Contract permits the scheduling of deliveries of such Operable
Capability, Energy, Operating Reserve and/or AGC to be subject,
in whole or part, to central dispatch through the System
Operator in accordance with market operation rules approved by
the Regional Market Operations Committee, such right to receive
Operable Capability, Energy, Operating Reserve and/or AGC shall
be treated for purposes of Section 14 as nearly as possible as
if it were a Unit Contract for an Operable Capability
Entitlement, Energy Entitlement, Operating Reserve Entitlements,
and/or AGC Entitlement, as applicable.
14.8 Determination of Energy Clearing Price.
For each hour, the System Operator shall determine the Energy Clearing
Price as follows:
(a) The System Operator shall rank in the order of lowest to highest
(i) the Dispatch Prices derived from the Bid Prices to furnish
Energy in the hour and (ii) the cost to NEPOOL of any Energy
received from Non-Participants in the hour pursuant to contracts
referenced in Section 14.6.
(b) The Energy Clearing Price shall be the weighted average of the
Dispatch Prices (or NEPOOL cost) of the "Energy Clearing Price
Block" as defined in the next sentence. The Energy Clearing
Price Block shall be identified for each hour in accordance with
market operation rules approved by the Regional Market
Operations Committee to reflect those resources with the highest
Dispatch Prices or NEPOOL cost that were centrally dispatched by
the System Operator for Energy deemed to have been furnished to
the Participants, excluding resources that were dispatched out
of merit as determined in accordance with market operation rules
approved by the Regional Market Operations Committee.
14.9 Determination of Operating Reserve Selling Price and Clearing Price.
(a) For each hour as necessary, the System Operator shall determine
the Operating Reserve Clearing Price for each category of
Operating Reserve as follows:
(i) The System Operator shall determine the aggregate
Kilowatts of the applicable category of Operating
Reserve that are deemed pursuant to Section 14.3(b) to
have been received by Participants for the hour.
(ii) For 10-Minute Non-Spinning Reserve and 30-Minute
Operating Reserve, the System Operator shall rank in the
order of lowest to highest the Bid Prices of the
resources designated by the System Operator for that
category of Operating Reserve for the hour. The
applicable Operating Reserve Clearing Price for 10-
Minute Non-Spinning Reserve or 30-Minute Operating
Reserve shall be the weighted average of the highest
Bid Prices for the 1000 Kilowatts (or such other number
as may be specified by the Regional Market Operations
Committee) of that category of Operating Reserve that
are designated by the System Operator for use in the
hour.
(iii) For 10-Minute Spinning Reserve the System Operator shall
rank in order of lowest to highest the sum for each
Operating Reserve Entitlement of (A) the Bid Price for
such Entitlement and (B) the lost opportunity costs
(as defined in Section 14.9(d)(ii)). The Operating
Reserve Clearing Price for 10-Minute Spinning Reserve
shall be the weighted average for the 1000 Kilowatts (or
such other number as may be specified by the Regional
Market Operations Committee) of the highest sums for the
hour of the Entitlements that were designated by the
System Operator for use in the hour.
(b) The Operating Reserve Selling Price for any hour for each
Kilowatt of 10-Minute Non-Spinning Reserve and 30-Minute
Operating Reserve deemed to be furnished by a Participant in the
hour pursuant to Section 14.3(b) shall be the applicable
Operating Reserve Clearing Price determined in accordance with
Section 14.9(a).
(c) Prior to the Third Effective Date, the Operating Reserve Selling
Price for any hour for each Kilowatt of 10-Minute Spinning
Reserve deemed to be furnished by a Participant from one of its
generating units designated for the hour by the System Operator
for 10-Minute Spinning Reserve pursuant to Section 14.3(b)
shall be an amount equal to the sum of the "Lost Opportunity
Clearing Price" and the lost opportunity cost (as defined in
Section 14.9(d)(ii)), if any, for the generating unit, both as
determined pursuant to Section 14.9(d) below. On and
after the Third Effective Date, the Operating Reserve Selling
Price for an hour for 10-Minute Spinning Reserve shall be the
applicable Operating Reserve Clearing Price for that hour.
(d) Prior to the Third Effective Date, for each hour, the System
Operator shall determine a Lost Opportunity Clearing Price for
use in determining the Operating Reserve Selling Price for 10-
Minute Spinning Reserve. A Lost Opportunity Clearing Price
shall be calculated for every hour as follows:
(i) The System Operator shall determine the Kilowatts of 10-
Minute Spinning Reserve that it designated and required
for the hour.
(ii) For that hour, the System Operator shall rank in order
of lowest to highest the lost opportunity costs for
generating units designated by the System Operator to
provide 10-Minute Spinning Reserve in the hour.
For purposes of this Section 14.9, the lost opportunity
cost for a Participant's generating unit shall be the
amount by which the Energy Clearing Price for the hour
exceeds the unit's Dispatch Price (not less than zero),
plus, in the case of hydroelectric generating facilities
and pumped storage hydroelectric generating facilities,
the Bid Price in the hour for each facility to provide
10-Minute Spinning Reserve.
(iii) The Lost Opportunity Clearing Price for an hour shall be
the weighted average of the highest 1000 Kilowatts (or
such other number as may be specified by the Regional
Market Operations Committee) of lost opportunity costs
for generating units that were designated by the System
Operator to provide 10-Minute Spinning Reserve in the
hour.
14.10 Determination of AGC Clearing Price.
For each hour, the System Operator shall determine the AGC Clearing
Price. The AGC Clearing Price shall be the weighted average of the Bid
Prices for the "AGC Clearing Price Block," as defined in the next
sentence. The AGC Clearing Price Block shall be identified for each
hour in accordance with market operation rules approved by the Regional
Market Operations Committee to reflect those AGC resources with the
highest Bid Prices that were designated by the System Operator for use
as AGC in the hour and were deemed pursuant to Section 14.3(c) to have
been received by Participants for the hour.
14.11 Funds to or from which Payments are to be Made.
(a) All payments for Energy, Operating Reserve or AGC
furnished or received, all uplifts paid pursuant to this
Section 14, and all market-based charges assessed
pursuant to Section 19.2 and paid in any month
shall be allocated through the Pool Interchange Fund as
follows:
Step One. For each week in which Energy is delivered or
received under the HQ Energy Banking Agreement, all
payments with respect to transactions under that
Agreement shall be made to or from the Energy
Banking Fund provided for in Section 14.11(b).
Step Two. (i) For each week in which Pre-Scheduled
Energy (as defined in the HQ Phase I Energy Contract) is
purchased pursuant to the HQ Phase I Energy Contract,
the aggregate amount which is paid by each Participant
pursuant to Section 14.6(b) for such Energy shall be
determined and paid on the Participant's account into
the Phase I Savings Fund.
(ii) For each week in which Energy is purchased pursuant
to the HQ Phase II Firm Energy Contract, the aggregate
amount which is paid by each Participant pursuant to
Section 14.6(b) for such Energy shall be determined and
paid on the Participant's account into the Phase II
Savings Fund.
Step Three. For each week in which Other HQ Energy is
purchased pursuant to the HQ Phase I Energy Contract or
Energy is purchased pursuant to the HQ Interconnection
Agreement, the aggregate amount paid by each Participant
pursuant to Section 14.6(b) for such Energy shall be
determined. Such amount shall be allocated between the
Participant's share of the Phase I Savings Fund and the
Participant's share of the Phase II Savings Fund created
under the HQ Use Agreement in the same ratio as (A) the
sum of (x) the number of kilowatthours of Other HQ
Energy deemed to be purchased by the Participant during
the week and (y) the HQ Phase I Percentage of the number
of kilowatthours deemed to be purchased by the
Participant under the HQ Interconnection Agreement
during the week, bears to (B) the HQ Phase II Percentage
of the number of kilowatthours purchased under the HQ
Interconnection Agreement during the week.
Step Four. The balance remaining in the Pool
Interchange Fund after Steps One through Three shall be
retained in the Pool Interchange Fund for the month and
shall be used and disbursed after each month in the
following order:
(i) amounts owed to Non-Participants (other than
Hydro-Quebec) for the month under contracts
entered into with them pursuant to Section
14.6(a) shall first be paid;
(ii) amounts paid by Participants for applicable
market-based charges assessed pursuant to Section
19.2 shall be used to reduce NEPOOL expenses; and
(iii) amounts owed to Participants for the month
pursuant to Section 14.5 shall then be paid.
(b) HQ Energy Banking Fund. All amounts allocated to the HQ
Energy Banking Fund for each month shall be used and
disbursed as follows:
(i) Participants which furnish Energy for delivery to
Hydro-Quebec under the HQ Energy Banking
Agreement shall receive therefor from their share
of the Energy Banking Fund the amount to
which they are entitled for such service in
accordance with Section 14.5.
(ii) amounts required to be paid to Hydro-Quebec under
the HQ Energy Banking Agreement shall be paid
from the shares of the Fund of the Participants
engaging in transactions under the HQ Energy
Banking Agreement for the month in accordance
with their respective interests in the
transactions for the month. If there is not
enough in any such share, the Participants with
the deficient shares shall be billed and pay into
their shares of the Fund the amounts required for
payments to Hydro-Quebec.
(iii) subject to the remaining provisions of this
Section, at the end of each month any balance
remaining in each Participant's share of
the HQ Energy Banking Fund shall be paid to the
Escrow Agent under the HQ Use Agreement to be
held and disbursed by it through the Phase I
Savings Fund and Phase II Savings Fund
created under the HQ Use Agreement, and shall be
allocated between the Participant's share of said
Funds as follows:
(A) the balance remaining in the Participant's
share of the HQ Energy Banking Fund for the
month shall be divided by the number of
kilowatthours deemed to be received by the
Participant under the HQ Energy Banking
Agreement during the month to determine an
average savings amount per kilowatthour;
(B) for any hour during the month in which the
number of kilowatthours received by NEPOOL
under the HQ Energy Banking Agreement
exceeded the HQ Phase I Transfer Capability,
an amount equal to (A) the Participant's
share of the excess of (1) the number of
kilowatthours received over (2) the HQ Phase
I Transfer Capability times (B) the average
savings amount per kilowatthour determined
for that Participant under (i) above shall be
allocated to the Phase II Savings Fund; and
(C) the remaining balance of the Participant's
share of the HQ Energy Banking Fund for the
month shall be allocated to the Phase I
Savings Fund.
It is recognized that, in view of the time which may
elapse between the delivery of Energy to or by Hydro-
Quebec in an Energy Banking transaction under the HQ
Energy Banking Agreement and the return of the Energy,
the amounts of Energy delivered to and received from
Hydro-Quebec, after adjustment for losses, may not be in
balance at the end of a particular month.
Further, if as of the end of any month and after
adjustment for electrical losses, the cumulative amount
of Energy so received from Hydro-Quebec exceeds the
amount so delivered, the aggregate amount paid by
Participants for the excess Energy pursuant to Section
14.6(b) shall be paid to the Energy Banking Fund. The
Escrow Agent under the HQ Use Agreement shall hold and
invest these funds. On the return of the excess
Energy to Hydro-Quebec, the amount so held by the Escrow
Agent shall be repaid to Hydro-Quebec and Participants
in accordance with the Energy Banking Agreement.
(c) Phase I HQ Savings Fund. The aggregate amount allocated
to each Participant's share of the Phase I HQ Savings
Fund for each month shall be used, first, to pay to
Hydro-Quebec the amount owed to it for the month for
Energy furnished under the Phase I HQ Energy Contract
and the HQ Phase I Percentage of the amount owed to it
for the month for Energy furnished to the Participants
under the HQ Interconnection Agreement. The balance of
the amount allocated to the Fund for the month shall be
paid to the Escrow Agent under the HQ Use Agreement
to be held and disbursed by it through the Phase I HQ
Savings Fund created thereunder in accordance with each
Participant's contribution to such balance.
(d) Phase II HQ Savings Fund. The aggregate amount
allocated to the Phase II HQ Savings Fund for each month
shall be used, first, to pay to Hydro-Quebec the amount
owed to it for the month for Energy deemed to be
furnished to the Participant under the Phase II HQ Firm
Energy Contract and the HQ Phase II Percentage of the
amount owed to it for the month for Energy deemed to be
furnished to the Participant under the HQ
Interconnection Agreement. The balance of the amount
allocated to the Fund for the month shall be paid to the
Escrow Agent under the HQ Use Agreement to be held and
disbursed by it through the Phase II HQ Savings Fund
created thereunder in accordance with each Participant's
contribution to such balance.
14.12 Development of Rules Relating to Nuclear and Hydroelectric Generating
Facilities, Limited-Fuel Generating Facilities, and Interruptible
Loads.
It is recognized that the central dispatch of Energy available from
nuclear generating facilities and from pondage associated with
hydroelectric generating facilities and from interruptible loads and of
pumping Energy for pumped storage hydroelectric generating facilities
and other limited-fuel generating facilities involves special problems
which must be resolved to assure fair and non-discriminatory treatment
of Participants having Entitlements in such generating facilities or
having such interruptible loads or any other Participants involved in
such transactions. Accordingly, the Regional Market Operations
Committee shall analyze such special problems and develop appropriate
rules for dispatching such facilities (including, but not limited to,
bids for dispatchable pumping load at pumped storage facilities), for
handling such interruptible loads and for paying for Operable
Capability, Energy, Operating Reserve and AGC involved in such
transactions on a basis consistent with the principles underlying this
Section 14; and upon approval by the Management Committee such rules
shall supersede the provisions of Sections 12 and 14 to the extent of
any conflict.
14.13 Dispatch and Billing Rules During Energy Shortages. It is recognized
that Energy shortages can result in special problems which must be
resolved to assure that dispatch and billing provisions do not prevent
achievement of the objectives specified in Section 13.4. Accordingly,
the Regional Market Operations Committee shall analyze such special
problems and develop appropriate dispatch and billing rules to be
applied during periods when the Management Committee determines that
there is, or is anticipated to be, an Energy shortage which adversely
affects the bulk power supply of the NEPOOL Control Area and any
adjoining areas served by Participants. Upon approval by the
Management Committee, such rules shall supersede the economic dispatch
and billing provisions of this Agreement to the extent of any conflict
therewith for the duration of such Energy shortage period.
14.14 Congestion Uplift. If limitations in available transmission capacity
in any hour require that the System Operator dispatch out-of-merit
resources that are bid by the Participants, the System Operator shall
determine for the constrained transmission area the aggregate of the
differences for all of the out-of-merit resources between their
Dispatch Prices and the Energy Clearing Price for the hour ("Congestion
Costs"). The amount so determined shall be the Congestion Costs for
that constrained area in the hour.
Such Congestion Costs shall be allocated to and paid by Participants
and Non-Participants as a congestion uplift as follows:
(a) In accordance with market operation rules approved by the
Regional Market Operations Committee, the System Operator shall
identify for each Participant and Non-Participant the difference
in megawatthours, if any, between (i) Electrical Load served in
the constrained area and transactions with Non-Participants
occurring in the hour which utilized the constrained interface
to import Energy into, or move Energy through, the constrained
area and (ii) in-merit Energy Entitlements located in the
constrained area that were used to serve such Electrical Load or
obligation to Non-Participants, taking into account Firm
Contracts and System Contracts between Participants and
electrical losses, if and as appropriate.
(b) The System Operator shall identify for each Participant and Non-
Participant the megawatthours, if any, of the rights of that
Participant or Non-Participant to use the then effective
transfer capability across the constrained interface.
(c) the System Operator shall identify for each Participant and Non-
Participant the megawatthours, if any, by which the amount
determined pursuant to clause (a) above for that Participant or
Non-Participant exceeds the amount determined for that
Participant or Non-Participant pursuant to clause (b) above. If
the clause (a) amount exceeds the clause (b) amount, the
Participant or Non-Participant will be deemed to have received
Energy from out-of-merit generation because of congestion, and
shall be responsible for paying a share of the aggregate
Congestion Costs in proportion to the Participant's or Non-
Participant's share of the aggregate amount of such excesses for
all Participants and Non-Participants.
14.15 Additional Uplift Charges. It is recognized that the System Operator
may be required from time to time to dispatch resources out of merit
for reasons other than those covered by Section 14.14. Accordingly, if
and to the extent appropriate, feasible and practical, dispatch and
operational costs shall be categorized and allocated as uplift
costs to those Participants and Non-Participants that are responsible
for such costs. Such allocations shall be determined in accordance
with market operation rules that are consistent with this Agreement and
any applicable regulatory requirements and approved by the Regional
Market Operations Committee.
PART FOUR
TRANSMISSION PROVISIONS
SECTION 15
OPERATION OF TRANSMISSION FACILITIES
15.1 Definition of PTF. PTF or pool transmission facilities are the
transmission facilities rated 69 kV or above owned by Participants
required to allow Energy from significant power sources to move freely
on the New England transmission network, and include:
(1) All transmission lines rated 69 kV and above, except:
(a) Those which are required to serve local load only,
thereby contributing little or no parallel capability to
the interconnected system.
(b) Generator leads, which are defined as transmission from
a generation bus to the nearest significant load bus or
radial transmission from a generator bus to the nearest
point on the interconnected network.
(c) Lines that are normally operated open.
(2) Necessary linkages (includes substation facilities such as
transformers, circuit breakers and associated equipment)
required to interconnect the lines which constitute PTF.
(3) If a Participant with significant generation in its transmission
and distribution system (initially 25 MW) is connected to the
New England network and none of the transmission facilities
owned by the Participant qualify to be included in PTF as
defined in (1) and (2) above, then such Participant's connection
to PTF will constitute PTF if both of the following requirements
are met for this connection:
(a) The connection is rated 69 kV or above.
(b) The connection is the principal transmission link
between the Participant and the remainder of the New
England PTF network.
The Regional Transmission Planning Committee shall review at least
annually the status of transmission lines and related facilities and
determine whether such facilities constitute PTF and shall prepare and
keep current a schedule of PTF facilities.
The following examples indicate the intent of the above
definitions:
(i) Radial tap lines to local load are excluded.
(ii) Lines which loop (supply from more than one
substation) a load bus into the interconnected
network are included.
(iii) Lines which loop (supply to more than one
substation) a generator bus into the
interconnected network are included.
(iv) Radial connections or connections from a
generating station to a single substation on the
interconnected network are excluded unless the
requirements of paragraph 3 above are met.
Transmission facilities owned by a Related Person of a
Participant which are rated 69 kV or above and are required to
allow Energy from significant power sources to move freely on
the New England transmission network shall also constitute PTF
provided (i) such Related Person files with the Secretary of the
Management Committee its consent to such treatment; and (ii) the
Management Committee determines that treatment of the facility
as PTF will facilitate accomplishment of NEPOOL's objectives.
If a facility constitutes PTF pursuant to this paragraph, it
shall be treated as "owned" by a Participant for purposes of
the Tariff and the other provisions of Part Four of the
Agreement.
15.2 Maintenance and Operation in Accordance with Good Utility Practice.
Each Participant which owns or operates PTF or other transmission
facilities rated 69 kV or above shall, to the fullest extent
practicable, cause all such transmission facilities owned or operated
by it to be designed, constructed, maintained and operated in
accordance with Good Utility Practice.
15.3 Central Dispatch. Each Participant which owns or operates PTF or other
transmission facilities rated 69 kV or above shall, to the fullest
extent practicable, subject all such transmission facilities owned or
operated by it to central dispatch by the System Operator; provided,
however, that each Participant shall at all times be the sole judge
as to whether or not and to what extent safety requires that at any
time any of such facilities will be operated at less than their full
capability or not at all.
15.4 Maintenance and Repair. Each Participant shall, to the fullest extent
practicable: (a) cause transmission facilities owned or operated by it
to be withdrawn from operation for maintenance and repair only in
accordance with maintenance schedules reported to and published by the
System Operator in accordance with procedures approved or established
by the Regional Transmission Operations Committee from time to time,
(b) restore such facilities to good operating condition with reasonable
promptness, and (c) in emergency situations, accelerate maintenance and
repair at the reasonable request of the System Operator in accordance
with rules approved or established by the Regional Transmission
Operations Committee.
15.5 Additions to or Upgrades of PTF. The need for an addition to or
upgrade for PTF may be determined in connection with an application or
request for service under the Tariff, or may be separately identified
by a NEPOOL committee, a Participant or the System Operator. In
accordance with the Tariff, if it is likely that a Direct Assignment
Facility will be required, a study to assess available transmission
capacity and, if necessary, a System Impact Study and a Facilities
Study shall be performed by the affected Participant in whose Local
Network the addition or upgrade would be effected and may be effected
by the Participant in any other case, subject to review by the System
Operator. A study may also be conducted by the Regional Transmission
Planning Committee and/or the System Operator with review of the study
by the System Operator if it does not perform the study. Studies to
assess available transmission capacity and System Impact Studies and
Facilities Studies shall be conducted in accordance with the applicable
methodology specified in Attachments C and D to the Tariff and the
procedures specified in the Tariff with respect to the payment of the
costs of the study shall apply.
If the studies conducted in connection with an application or request
for service under the Tariff, or as part of a separate review by a
Participant, the Regional Transmission Planning Committee or the System
Operator, indicate that new facilities or a facility modification or
other upgrade of PTF facilities are necessary to ensure adequate,
economic and reliable operation of the bulk power supply systems of the
Participants for regional purposes, whether or not a particular
customer is benefited, one or more Participants or other entities, may
be designated by the Regional Transmission Planning Committee, subject
to review by the System Operator, to design or effect the construction
or modification. The Participants shall be obligated to support all of
the carrying costs of the facility which are not designated for support
by particular Participants or Non-Participants as Direct Assignment
Facilities or on some other basis in accordance with the Tariff or by
mutual agreement, on a load ratio share basis during the Transition
Period and thereafter as part of the Annual Transmission Revenue
Requirements to be paid through the Regional Network Service rate.
In determining the support obligations ("Support Shares") for a
particular PTF upgrade or addition, the Regional Transmission Planning
Committee, subject to review by the System Operator, may determine that
the proposed facilities exceed regional system and regulatory or other
public requirements. In such a case, the Regional Transmission
Planning Committee, subject to review by the System Operator, may
require the Participant in whose Local Network the addition or upgrade
is to be effected, to bear the excess cost and include it in the costs
to be recovered under the Participant's Local Network Service tariff.
In fixing the support obligations of a PTF addition or upgrade, the
Regional Transmission Planning, subject to review by the System
Operator, may require that a portion or all of the costs be paid by
particular users. The designation of the users of a particular
facility supporting the facility may be changed by the Regional
Transmission Planning Committee, subject to review by the System
Operator, from time to time as the use changes.
Upon the designation of a Participant or other entity to design and
effect a PTF addition or upgrade and the fixing of the support payments
to be made by the Participants and Non-Participants, the designated
Participant or other entity shall, subject to Sections 18.4 and 18.5
and the receipt of any necessary public approvals or permits and the
acquisition of any required rights of way or other property, use its
best efforts to effect the proposed construction or modification.
The terms of the support arrangement for a particular PTF addition or
upgrade with respect to continued support of the facility in the event
of a termination of NEPOOL, the cancellation of the project due to a
failure to obtain regulatory approvals or permits or required rights of
way or other property, or action to terminate the project before its
completion for whatever reason shall be determined by agreement between
the designated Participant(s) or other entity and the Regional
Transmission Planning Committee, subject to review by the System
Operator, as a part of the designation process on a case-by-case basis.
SECTION 16
SERVICE UNDER TARIFF
16.1 Effect of Tariff. The Tariff specifies the terms and conditions under
which the Participants will provide regional transmission service
through NEPOOL. This Section 16 specifies various rights and
obligations with respect to the revenues to be collected by NEPOOL for
the Participants under the Tariff and related matters. The usage in
this Section 16 of terms which are defined in the Tariff and not
otherwise defined in this Agreement is in accordance with the
definitions of such terms in the Tariff.
16.2 Obligation to Provide Regional Service. The Participants which own PTF
shall collectively provide through NEPOOL regional transmission service
over their PTF facilities, and the facilities of their Related Persons
which constitute PTF in accordance with Section 15.1, to other
Participants and other Eligible Customers pursuant to the Tariff. The
Tariff provides open access for all of the types of regional
transmission service required by Participants and other Eligible
Customers over PTF and it is intended to be the only source of such
service, except for service provided for Excepted Transactions.
16.3 Obligation to Provide Local Network Service. Each Participant which
owns the PTF or other transmission facilities shall provide Local
Network Service to other Participants or other Eligible Customers
connected to the Transmission Provider's transmission system pursuant
to a tariff (a "Local Network Service Tariff") filed by the
Transmission Provider with the Commission. A Participant is also
obligated to provide Local Point-to-Point Service under its Local
Network Service Tariff or otherwise, to permit a Participant or other
Entity with an Entitlement in a generating unit in the Participant's
Local Network to deliver the output of the generating unit to an
interconnection point on PTF.
A Local Network Service tariff shall provide:
(i) for a pro rata allocation of monthly revenue requirements
between the Participant which is the Transmission Provider and
the Participants and other Eligible Customers receiving service
under the tariff on the basis of their loads during the hour in
the month in which the total connected load to the Local
Network is at its maximum, without any adjustment for credits
for generation;
(ii) for the recovery under the Local Network Service tariff of that
portion of the Transmission Provider's Annual Transmission
Revenue Requirements with respect to PTF which is not recovered
through the distribution of revenues from Regional Network
Service pursuant to Section 16.6(a);
(iii) that where all or a part of the load of a Participant or other
Eligible Customers taking service under the tariff is connected
directly to PTF, the Participant or other Eligible Customers
receiving the service shall pay each Year during the Transition
Period for such service with respect to the load solely
connected to PTF the percentage specified in the schedule below
of the applicable Local Network Service charge for service
across non-PTF transmission facilities and shall have no
obligation to pay charges for service across non-PTF
transmission facilities with respect to that portion of the
connected load after the Transition Period, but shall continue
to pay its share of any other Local Network Service costs
directly associated with the PTF-connected load; provided that
in the event of any inconsistency between the foregoing
provisions and the terms of any Excepted Transaction which is
listed in Attachment G-1 to the Tariff, the Excepted Transaction
shall control:
Year One Year Two Year Three Year Four Year Five
% of charge 100% 80% 60% 40% 20%
to be paid
(iv) that if the Transmission Provider provides Tie Benefit Service,
amounts received by it from NEPOOL pursuant to Section 16.6 out
of revenues received for such service shall reduce its Local
Network Service revenue requirements;
(v) that if the Transmission Provider receives a distribution
pursuant to Section 16.6 from NEPOOL out of revenues paid for
Through or Out Service, the amounts received shall reduce its
Local Network Service revenue requirements;
(vi) that if the Transmission Provider receives transmission revenues
with respect to an Excepted Transaction, the amounts received
shall reduce its Local Network Service revenue requirements; and
(vii) any Transition Payment paid or received by the Transmission
Provider shall increase or reduce, as appropriate, its Local
Network Service revenue requirements.
16.4 Transmission Service Availability. The availability of transmission
capacity to provide transmission service under the Tariff shall be
determined in accordance with the Tariff. In determining the
availability of transmission capacity, existing committed uses of the
Participants' transmission facilities shall include uses for existing
firm loads and reasonably forecasted changes in such loads, and for
Excepted Transactions.
16.5 Transmission Information. Information concerning (i) available
transmission capacity, (ii) transmission rates and (iii) system
conditions that may give rise to Interruptions or Curtailments shall be
made available to all Participants and Non-Participants through
the OASIS on a timely and non-discriminatory basis. All Participants
owning PTF or other transmission facilities rated 69 kV or higher shall
make available to the System Operator the information required to
permit the maintenance of the OASIS in compliance with Commission Order
889 and any other applicable Commission orders; provided that no
Participant shall be required to furnish information which is required
to be treated as confidential in accordance with NEPOOL policy without
appropriate arrangements to protect the confidentiality of such
information.
16.6 Distribution of Transmission Revenues. Payments required by the Tariff
for the use of the NEPOOL Transmission System shall be made to NEPOOL
and shall be distributed by it in accordance with this Section 16.6.
A. Regional Network Service Revenues. Revenues received by NEPOOL
for providing Regional Network Service each month during the
Transition Period shall be distributed to the Participants
owning or supporting PTF in part on the basis of allocated flows
for the region as determined in accordance with the methodology
specified in Attachment A to this Agreement and in part in
proportion to the respective Annual Transmission Revenue
Requirements for PTF of the owners and supporters, in accordance
with the following Schedule:
Year One Year Two Year Three Year Four Year Five
Allocated
flows: 25% 20% 15% 10% 5%
Annual
Transmission
Revenue
Requirements 75% 80% 85% 90% 95%
Revenues received by NEPOOL for providing Regional Network
Service each month after the Transition Period shall be
distributed to the Participants owning or supporting PTF in
proportion to their respective Annual Transmission Revenue
Requirements for PTF.
B. Through or Out Service Revenues. The revenues received by
NEPOOL each month for providing Through or Out Service shall be
distributed among the Participants owning PTF on the basis of
allocated flows for the transaction determined in accordance
with the methodology specified in Attachment A to this
Agreement; provided that for service provided during the
Transition Period but not thereafter, for an "Out" transaction
which originates on the system of a Participant which owns the
PTF facilities on the New England side of the interface with the
other Control Area over which the transaction is delivered, 100%
of the megawatt mile flows with respect to the transaction shall
be deemed to occur on such Participant's system.
C. Tie Benefit Service Revenues. The revenues received each month
by NEPOOL for Tie Benefit Service with respect to the
transmission ties to New York and New Brunswick shall be
distributed as follows during and after the Transition
Period:
1. New York Ties
The revenues derived relating to Tie Benefits received
from the New York ties will be distributed as follows:
Northeast Utilities System Companies 72%
New England Power Company 14%
Vermont Electric Power Company 14%
2. New Brunswick Ties
The revenues derived relating to Tie Benefits received
from the New Brunswick tie will be distributed as
follows:
Central Maine Power Company 78.32%
Bangor Hydro-Electric Company 14.19%
Maine Public Service Company 7.49%
D. Transition Payments. Transition Payments received by NEPOOL
each month shall be distributed to the Participants in
accordance with Schedule 11 to the Tariff.
16.7 Changes to Tariff. The Tariff constitutes part of the Agreement and
shall be subject to change either in accordance with Section 21.11 or
by an affirmative vote of members of the Management Committee having at
least 70% of the aggregate Voting Shares to which all members are
entitled; provided, however, that the negative votes of any two
or more members representing Participants which are not Related Persons
of each other and which have at least 20% of the aggregate Voting
Shares to which all members are entitled shall defeat any proposed
change. In determining whether the negative vote total specified above
has been reached, the following limitation shall be applied: if the
member representing any Participant would be entitled to cast against
the proposed action more than 18% of the aggregate Voting Shares to
which all members are entitled, such member shall be entitled to vote
negatively only 18% of such aggregate Voting Shares. Nothing in this
Agreement shall be deemed to affect in any way the ability of any
Participant or Non-Participant to apply to the Commission under Section
205 or 206 of the Federal Power Act for a change in any rate, charge,
term, condition or classification of service under the Tariff.
SECTION 17
POOL-PLANNED UNIT SERVICE
17.1 Effective Period. The provisions contained in this Section 17 shall
continue in effect until the fifth anniversary of the effective date of
the Tariff, and shall be of no effect after that date.
17.2 Obligation to Provide Service. Until the fifth anniversary of the
effective date of the Tariff, each Participant shall provide service
over its PTF facilities under this Section 17 rather than under the
Tariff, for the following purposes:
(a) the transfer to a Participant's system of its ownership
interest or its Unit Contract Entitlement under a
contract entered into by it before November 1, 1996 in a
Pool-Planned Unit which is off its system;
(b) the transfer to a Participant's system of its
Entitlement in a purchase under a contract entered into
by it before November 1, 1996 (including a purchase
under the HQ Phase II Firm Energy Contract) from Hydro-
Quebec where the line over which the transfer is made
into New England is the HQ Interconnection; and
(c) the transfer to a Non-Participant of its Entitlement in
a Pool-Planned Unit pursuant to an arrangement which has
been approved prior to November 1, 1996 by the
Management Committee.
17.3 Rules for Determination of Facilities Covered by Particular
Transactions. It is anticipated that it may be necessary with respect
to a particular transmission use under subsection (a), (b) or (c) of
Section 17.2 to determine whether the transaction is effected entirely
over PTF, entirely over facilities that are not PTF, or partially over
each.
The following rules shall be controlling in the determination of the
facilities required to effect the use:
(a) To the extent that EHV PTF is available to effect the
transaction, over all or part of the distance to be
covered, the use shall be deemed to be effected on such
EHV PTF over such portion of the distance to be
covered.
(b) To the extent that EHV PTF is not available for the
entire distance to be covered by the use, but Lower
Voltage PTF is available to cover all or part of the
distance not covered by EHV PTF, the transaction shall
be deemed to be effected on such Lower Voltage PTF.
If a Participant has ownership or contractual rights with
respect to an Excepted Transaction which are independent of this
Agreement and the Tariff and are adequate to provide for a
transfer of the types specified in subsections 17.2(a),
(b) or (c), and such rights are not limited to the transfer in
question, the transfer shall be deemed to have been effected
pursuant to such rights and not pursuant to the provisions of
this Agreement. A copy of each instrument establishing
such rights, or an opinion of counsel describing and
authenticating such rights, shall be filed with the Secretary of
the Management Committee.
17.4 Payments for Uses of EHV PTF During the Transition Period.
(a) Each Participant shall pay each month for its uses of EHV PTF
for transfers of Entitlements pursuant to subsections (a) or (b)
of Section 17.2, one-twelfth of the NEPOOL EHV PTF Participant
Summer or Winter Wheeling Rate in effect for the calendar year
ending December 31, 1996, as determined in accordance
with the Prior NEPOOL Agreement, for each Kilowatt of its
current Entitlements which qualify for transfer pursuant to
subsections (a) or (b) of Section 17.2, except as otherwise
provided in Section 17.3; provided that such payment shall be
required with respect to only one-half the Kilowatts covered
by a NEPOOL Exchange Arrangement (as hereinafter defined).
Each Participant which is a party to the HQ Phase II Firm Energy
Contract (other than a Participant (i) whose system is directly
interconnected to the HQ Interconnection or (ii) which has
contractual rights independent of this Agreement and the Tariff
which give it direct access to the HQ Interconnection
and which are not limited to transfers of Energy delivered over
the HQ Interconnection) shall also pay each month for the use of
EHV PTF for deliveries under the Phase II Firm Energy Contract
during the Base Term of the HQ Phase II Firm Energy Contract,
one-twelfth of the NEPOOL EHV PTF Participant Summer or Winter
Wheeling Rate in effect for the calendar year ending December
31, 1996, as determined in accordance with the Prior NEPOOL
Agreement, for each Kilowatt of its HQ Phase II Net Transfer
Responsibility for the month. If, and to the extent that, such
Responsibility continues for any period by which the term of
said Contract extends beyond the Base Term, each such
Participant shall continue to pay the above rate during the
extension period with respect to its continuing Responsibility.
A Participant shall not be deemed to be directly interconnected
to the HQ Interconnection for purposes of this paragraph solely
because of its participation in arrangements for the support
and/or use of PTF facilities installed or modified to effect
reinforcements of the New England AC transmission system
required in connection with the HQ Interconnection. A copy of
each contract establishing rights independent of this Agreement
and the Tariff which provides direct access to the HQ
Interconnection, or an opinion of counsel describing and
authenticating such rights, shall be filed with the Secretary of
the Management Committee.
The NEPOOL EHV PTF Participant Summer Wheeling Rate for any
calendar year shall be applicable to the months in the Summer
Period.
The NEPOOL EHV PTF Participant Winter Wheeling Rate for any
calendar year shall be applicable to the months in the Winter
Period.
A NEPOOL Exchange Arrangement is one entered into by two
Participants each of which has an ownership interest in a Pool-
Planned Unit on its own system pursuant to which each sells out
of its ownership interest, a Unit Contract Entitlement to the
other for a period of time which is, in whole or part, the
same for both sales. Such an arrangement shall constitute a
NEPOOL Exchange Arrangement even though the beginning and ending
dates of the two Unit Contract sale periods are different, but
only for the period for which both sales are in effect. If for
any period the number of Kilowatts covered by the two
Unit Contract Entitlements of a NEPOOL Exchange Agreement are
not the same, the portion of the larger Entitlement which
exceeds the amount of the smaller Entitlement shall not be
deemed to be covered by such NEPOOL Exchange Arrangement for
purposes of this Section 17.4.
(b) Each Participant shall pay each month for its use of EHV PTF for
a transfer of an Entitlement in a Pool-Planned Unit to a Non-
Participant pursuant to Section 17.2(c) such charge as is fixed
by the Management Committee at the time of its approval of the
sale, and filed with the Commission.
(c) Fifty percent of all amounts required to be paid with respect to
transfers by a Participant pursuant to subsection (a) or (b) of
Section 17.2 shall be paid to a pool transmission fund and
distributed monthly among the Participants in proportion to the
respective amounts of their costs with respect to EHV PTF for
the calendar year 1996 as determined in accordance with the
Prior NEPOOL Agreement.
(d) The remaining 50% of all amounts required to be paid with
respect to transfers by a Participant pursuant to subsections
(a) or (b) of Section 17.2 shall be paid to, and retained by,
the Participant on whose system the transfer originates, or
in the event the EHV PTF system of such Participant is supported
in part by other Participants, then to the Participant on whose
system the transfer originates and such other Participants in
proportion to the respective shares of the costs of such EHV PTF
system borne by each of them or in such other manner as the
Participants involved may jointly direct; provided that the
Participant on whose system the transfer originates shall have
the right to waive such 50% payment in whole or part as to a
particular transfer except that no such waiver may adversely
affect the payments to any other Participant which is
supporting in part the originating system's EHV PTF system.
17.5 Payments for Uses of Lower Voltage PTF. Each Participant which uses
another Participant's Lower Voltage PTF pursuant to this Section 17
shall pay each month to the owner of such Lower Voltage PTF (1) for
each Kilowatt of its use of such Lower Voltage PTF for transfer of
Entitlements pursuant to Subsections 17.2(a), (b) or (c) during the
month, and (2) during the Base Term of the HQ Phase II Firm Energy
Contract (and during any extension of the term of said Contract if and
to the extent its HQ Phase II Net Transfer Responsibility continues
during the extension period) for each Kilowatt of its HQ Phase II Net
Transfer Responsibility for the month, the owner's Lower Voltage PTF
Winter Wheeling Rate or Summer Wheeling Rate for the 1996 calendar
year, as determined in accordance with the Prior NEPOOL Agreement.
17.6 Use of Other Transmission Facilities by Participants. Each Participant
which has no direct connection between its system and PTF shall be
entitled to use the non-PTF transmission facilities of any other
Participant required to reach its system for any of the purposes for
which PTF may be used under Section 17.2. Such use shall be
effected, and payment made, in accordance with the other Participant's
filed open access tariff.
17.7 Limits on Individual Transmission Charges.
Any charges for transmission service pursuant to this Section 17 by any
Participant to another Participant shall be just, reasonable and not
unduly discriminatory or preferential. No provision of this Section 17
shall be construed to waive the right of any Participant to seek review
of any charge, term or condition applicable to such transmission
service by another Participant by the Commission or any other
regulatory authority having jurisdiction of the transaction.
PART FIVE
GENERAL
SECTION 18
GENERATION AND TRANSMISSION FACILITIES
18.1 Designation of Pool-Planned Facilities.
At the request of a Participant, the Management Committee shall
designate as "pool-planned" a generating or transmission facility to be
constructed by the Participant or its Related Person if the Management
Committee determines that the facility is consistent with NEPOOL
planning. The Management Committee may not unreasonably withhold
designation as a Pool-Planned Facility of a generation unit or other
facility proposed by one or more Participants in order to satisfy their
anticipated Installed Capability Responsibilities with a mix of
generation and other resources reasonably comparable as to economics
and types to that being developed for New England.
18.2 Construction of Facilities.
Subject to Sections 13.1, 15.2, 15.5, 18.3, 18.4 and 18.5, and to the
provisions of the Tariff, each Participant shall have the right to
determine whether, and to what extent, additions to and modifications
in its generating and transmission facilities shall be made. However,
each Participant shall give due consideration to recommendations
made to it by the Management Committee or the System Operator for any
such additions or modifications and shall follow such recommendations
unless it determines in good faith that the recommended actions would
not be in its best interest.
18.3 Protective Devices for Transmission Facilities and Automatic Generation
Control Equipment.
Each Participant shall install, maintain and operate such protective
equipment and switching, voltage control, load shedding and emergency
facilities as the Management Committee may determine to be required in
order to assure continuity of service and the stability of the
interconnected transmission facilities of the Participants. Until the
Second Effective Date, each Participant shall also install, maintain
and operate such Automatic Generation Control equipment as the
Management Committee may determine to be required in order to maintain
proper frequency for the interconnected bulk power system of the
Participants and to control power flows on interconnections between
Participants and Non-Participants.
18.4 Review of Participant's Proposed Plans.
Each Participant shall submit to the Management Committee, the Market
Reliability Planning Committee or the Regional Transmission Planning
Committee, as appropriate, and the Regional Market Operations Committee
or the Regional Transmission Operations Committee, as appropriate, for
review by them and the System Operator, in such form, manner and detail
as the Management Committee may reasonably prescribe, (i) any new or
materially changed plan for additions to, retirements of, or changes in
the capacity of any supply and demand-side resources or transmission
facilities rated 69 kV or above subject to control of such Participant,
and (ii) any new or materially changed plan for any other action to be
taken by the Participant which may have a significant effect on the
stability, reliability or operating characteristics of its system or
the system of any other Participant. No significant action (other than
preliminary engineering action) leading toward implementation of any
such new or changed plan shall be taken earlier than sixty days (or
ninety days, if the Management Committee determines that it requires
additional time to consider the plan and so notifies the Participant in
writing within the sixty days) after the plan has been submitted to the
Committees. Unless prior to the expiration of the sixty or ninety
days, whichever is applicable, the Management Committee notifies the
Participant in writing that it has determined that implementation of
the plan will have a significant adverse effect upon the reliability or
operating characteristics of its system or of the systems of one or
more other Participants, the Participant shall be free to proceed. The
time limits provided of this Section 18.4 may be changed with respect
to any such submission by agreement between the Management Committee
and the Participant required to submit the plan.
18.5 Participant to Avoid Adverse Effect.
If the Management Committee notifies a Participant pursuant to Section
18.4 that implementation of the Participant's plan has been determined
to have a significant adverse effect upon the reliability or operating
characteristics of its system or the systems of one or more other
Participants, the Participant shall not proceed to implement such plan
unless the Participant takes such action or constructs at its expense
such facilities as the Management Committee determines to be reasonably
necessary to avoid such adverse effect; provided that if the plan is
for the retirement of a supply or demand-side resource, the Participant
may proceed with its plan only if, after engaging in good faith
negotiations with persons designated by the Management Committee to
address the adverse effects on reliability or operating
characteristics, the negotiations either address the adverse effects to
the satisfaction of the Management Committee, or no satisfactory
resolution can be achieved on terms acceptable to the parties within 90
days of the Participant's receipt of the Management Committee's notice.
Any agreement resulting from such negotiations shall be in writing and
shall be filed in accordance with the Commission's filing requirements
if it requires any payment.
SECTION 19
EXPENSES
19.1 Annual Fee.
Each Participant shall pay to NEPOOL in January of each year an annual
fee of $500, which shall be applied toward NEPOOL expenses.
19.2 NEPOOL Expenses.
It is an objective of the Participants to work with the System Operator
to establish to the maximum extent possible fees that fairly allocate
NEPOOL and System Operator costs directly to the Participants and Non-
Participants responsible for such costs, rather than through the
general expense allocation identified below. Subject to the continued
payment of a portion of NEPEX Expenses from the Savings Fund until the
Second Effective Date in accordance with the Prior NEPOOL Agreement,
the balance of NEPOOL expenses remaining to be paid after the
application of (i) the annual fee to be paid pursuant to Section 19.1,
and (ii) any fees or other charges for services or other revenues
received by NEPOOL, or collected on its behalf by the System Operator,
shall be allocated among and paid monthly by the Participants in
accordance with their respective Voting Shares.
SECTION 20
INDEPENDENT SYSTEM OPERATOR
(a) The Management Committee is authorized and directed to approve
one or more agreements to be entered into with the ISO upon its
activation (the "ISO Agreement") and any amendments to the ISO
Agreement which the Committee may deem necessary or appropriate
from time to time. The ISO Agreement shall specify the rights
and responsibilities of NEPOOL and the ISO, including
the responsibilities of the ISO, for the continued operation of
the NEPOOL control center by the ISO as the control center
operator for the NEPOOL Control Area and the administration of
the Tariff. In addition, the ISO shall be responsible for the
furnishing of billing and other services required by NEPOOL.
(b) The fees and charges of the ISO (other than fees and charges for
services which are separately billed), and any indemnification
payable under the ISO Agreement, shall be shared by the
Participants in accordance with Section 19.
(c) The Participants shall provide to the ISO the financial support,
information and other resources necessary to enable the ISO to
provide the services specified in the ISO Agreement, or in this
Agreement, in accordance with Good Utility Practice and subject
to the budgeting, approval and dispute resolution provisions
of the ISO Agreement and this Agreement.
(d) The Participants shall provide appropriate funding for the
acquisition of land, structures, fixtures, equipment and
facilities, and other capital expenditures for the ISO, which
are included in the annual budget for the ISO in accordance with
the provisions of the ISO Agreement, or otherwise specifically
approved by the Management Committee. All such land,
structures, fixtures, equipment and facilities, and other
capital assets, and all software or other intellectual property
or rights to intellectual property or other assets, acquired or
developed by the ISO in order to carry out its responsibilities
under the ISO Agreement shall be the property of the
Participants or shall be acquired by the Participants under
lease in accordance with arrangements approved by the Management
Committee. Unless otherwise agreed by the Participants, the
funding of the acquisition, or lease, of land, structures,
fixtures, equipment and facilities, and other capital
expenditures, or the acquisition of other assets, and the
ownership thereof, or the obligations of Participants as
lessees, shall be in proportion to the Voting Shares of each
Participant in effect as from time to time. The Participants
shall make all such assets (including the assets of the existing
NEPOOL headquarters and control center) available for use by the
ISO in carrying out its responsibilities under the ISO
Agreement. The ISO Agreement shall require the ISO, on behalf
of the Participants, to maintain and care for, insure as
appropriate, and pay any property taxes relating to, assets made
available for its use.
(e) The ISO Agreement shall require the ISO to refrain from any
action that would create any lien, security interest or
encumbrance of any kind upon the facilities, equipment or other
assets of any Participant, or upon anything that becomes
affixed to such facilities, equipment or other assets. The
Participants and the ISO shall include in the ISO Agreement a
provision that, upon the request of any Participant, the ISO
shall (i) provide a written statement that it has taken no
action that would create any such lien, security interest or
encumbrance, and (ii) take all actions within the control of the
ISO, at the direction and expense of the requesting Participant,
required for compliance by such Participant with the provisions
of its mortgage relating to such facilities, equipment or other
assets.
(f) The ISO shall have the right to appoint a non-voting member and
an alternate to each NEPOOL committee other than the Management
Committee. The member appointed to each committee shall have
all of the rights of any other member of the committee except
the right to vote.
(g) The ISO shall have the same rights as a Participant to appeal to
the Management Committee any action taken by any other NEPOOL
committee, and shall be entitled to appear before the Management
Committee on any such appeal. Further, the ISO shall be
entitled to submit any dispute with respect to a vote of
the Management Committee to approve, modify, or reject a
proposed action to resolution in accordance with Section 21.1,
whether or not the action could have been submitted by a
Participant in accordance with Section 21.1A. In addition, the
ISO shall be entitled to submit any dispute with respect to a
vote of the Management Committee which denies an appeal to the
Management Committee by the ISO or which takes action on any
rulemaking issue to the Board of Directors of the ISO for
determination, subject to the right of the Management
Committee to seek a review in accordance with the Alternate
Dispute Resolution procedures or by the Commission. The ISO
shall give notice of any such submission to the Secretary of the
Management Committee within ten days of the action of the
Management Committee and shall mail a copy of such notice to
each member of the Management Committee. Pending final action
on the submission in accordance with Section 21.1 or by the
Board of Directors of the ISO or the Commission, as appropriate,
the giving of notice of the submission shall suspend the
Management Committee's action. Unless the Board of Directors of
the ISO acts within 60 days of the ISO's notice to the
Management Committee, the Management Committee action will be
deemed to be approved.
(h) The ISO Agreement shall specify the ISO's independent authority
with respect to rulemaking.
(i) NEPOOL and its committees and the ISO shall consult and
coordinate from time to time with the relevant state regulatory,
siting and other authorities of the six New England states on
operating, planning and other issues of concern to the states.
The New England Conference of Public Utilities Commissioners,
Inc. (NECPUC) or its designee shall be furnished notices of
meetings of all NEPOOL committees and the Board of Directors of
the ISO, and minutes of their meetings. NECPUC and other state
authorities shall be provided an appropriate opportunity to
appear at meetings of the NEPOOL committees and the Board of
Directors of the ISO and to present their views.
Representatives of NEPOOL and the ISO shall be designated to
attend meetings of NECPUC or any committee or task force of
NECPUC, to the extent NECPUC or its committee or task force may
deem such attendance appropriate.
SECTION 21
MISCELLANEOUS PROVISIONS
21.1 Alternative Dispute Resolution.
A. General:
If the ISO is aggrieved by a vote of the Management Committee to
approve, modify or reject a proposed action under this
Agreement, including the Tariff, it may submit the matter for
resolution hereunder. If the Management Committee is aggrieved
by an action of the ISO Board of Directors ("ISO Board") under
this Agreement, including the Tariff or the ISO Agreement (as
defined in Section 20(a)), the Management Committee may submit
the matter for resolution hereunder; provided, however, that if
the action of the ISO relates to rulemaking, the Management
Committee may submit the matters for resolution under this
Section 21.1 only with the concurrence of the ISO. Any
Participant which is aggrieved by a vote of the Management
Committee to approve, modify or reject a proposed action under
this Agreement, including the Tariff, may, as provided below,
submit the matter for resolution hereunder if the vote:
(1) requires such Participant to make a payment or to take
any action pursuant to this Agreement; or
(2) reduces the amount of any receipt or forbids, pursuant
to this Agreement, the taking of any action by the
Participant; or
(3) fails to afford it any right to which it is entitled
under the provisions of this Agreement or imposes on it
a burden to which it is not subject under the provisions
of this Agreement; or
(4) results in the termination of the Participant's status
as a Participant or imposes any penalty on the
Participant; or
(5) results in an allocation of transmission or other
facilities support obligations; or
(6) fails to grant in full an application for transmission
service pursuant to the Tariff.
No legal or regulatory proceeding (except those reasonably
necessary to toll statutes of limitations, claims for laches or
other bars to later legal or regulatory action) shall be
initiated by any Participant with respect to any such matter
while proceedings are pending under this Section with respect to
the matter.
B. Procedure:
(1) Submission of a Dispute: The ISO or a Participant
seeking review of a vote of the Management Committee
shall give written notice to the Secretary of the
Management Committee within ten business days of the
vote, and shall mail or telecopy a copy of its notice to
each member of the Management Committee. Where the
Management Committee is seeking review of an action of
the ISO Board, the Management Committee shall give
written notice to the Secretary of the ISO Board. The
provider of notice under this Section shall be referred
to herein as the "Aggrieved Party."
(2) Suspension of Action: If the ISO seeks review of a vote
of the Management Committee pursuant to this Section,
the vote to be reviewed shall be suspended pending
resolution of such review by the arbitrator or the
Commission if raised in regulatory proceedings. If a
Participant seeks such a review, the vote to be reviewed
shall be suspended for up to 90 days following the
giving of the Participant's notice pending resolution of
any arbitration proceeding unless the Management
Committee determines that the suspension will imperil
the stability or reliability of the NEPOOL Control Area
bulk power supply.
(3) Aggrieved Party Options: (i) If the notice is to seek
review of a vote of the Management Committee, the
Aggrieved Party's notice to the Management Committee
shall invoke arbitration as described herein in
its notice pursuant to paragraph B(1), and may also
initiate mediation with the agreement of the Management
Committee, while reserving such Party's right to proceed
with the arbitration if mediation does not resolve
the matter within 20 days of the giving of the Party's
notice or such longer period as may be fixed by mutual
agreement of the Management Committee and the Aggrieved
Party. Notwithstanding the initiation of mediation, the
arbitration proceeding shall proceed concurrently with
the selection of the arbitrator pursuant to paragraph
C(1) of this Section 21.1.
(ii) If the notice is to seek review of an ISO action, the
Management Committee's notice to the ISO Board shall
(subject to the concurrence of the ISO for actions
relating to rulemaking as provided in Section 21.1A)
invoke arbitration as described herein in its notice
pursuant to paragraph B(1), and may also initiate
mediation with the agreement of the ISO Board, while
reserving the Management Committee's right to proceed
with the arbitration if mediation does not resolve the
matter within 20 days of the giving of the Management
Committee's notice or such longer period as may be fixed
by mutual agreement of the ISO Board and the Management
Committee. Notwithstanding the initiation of mediation,
the arbitration proceeding shall proceed concurrently
with the selection of the arbitrator pursuant to
paragraph C(1) of this Section 21.1.
(4) Mediation Positions not to be Used Elsewhere: All
mediation proceedings pursuant to this Section are
confidential and shall be treated as compromise and
settlement negotiations for purposes of applicable
rules of evidence.
(5) Time Limits; Duration: Any other Participant that
wishes to participate in an arbitration proceeding
hereunder shall give signed written notice to
the Secretary of the Management Committee, and to the
Secretary of the ISO Board if the ISO is involved in
such arbitration, no later than ten calendar days after
the giving of the notice of arbitration. The arbitration
procedure shall not exceed 90 calendar days from the
date of the Aggrieved Party's notice invoking
arbitration to the arbitrator's decision unless the
parties agree upon a longer or shorter time. All
agreements by the ISO or the aggrieved Participant and
the Management Committee to use mediation shall
establish a schedule which will control unless later
changed by mutual agreement.
C. Arbitration:
(1) Selection of Arbitrator: The ISO or the
aggrieved Participant and the Management
Committee shall attempt to choose by mutual
agreement a single neutral arbitrator to hear the
dispute. If the ISO or the Participant and the
Management Committee fail to agree upon a single
arbitrator within ten calendar days of the
giving of notice of arbitration to the Secretary
of the Management Committee or the Secretary of
the ISO Board, as the case may be, the American
Arbitration Association shall be asked to
appoint an arbitrator. In either case, the
arbitrator shall be knowledgeable in matters
involving the electric power industry,
including the operation of control areas and bulk
power systems, and shall not have any substantial
business or financial relationships with the ISO,
NEPOOL or its Participants (other than previous
experience as an arbitrator) unless otherwise
mutually agreed by the ISO or the aggrieved
Participant and the Management Committee.
(2) Costs: NEPOOL shall be responsible for all of the
costs of the proceeding if it is initiated by the
ISO or by the Management Committee. If a
proceeding is initiated by an aggrieved
Participant, each party shall be responsible for
the following costs, if applicable:
(i) its own costs incurred during the arbitration
process (except that this does not preclude
billing the aggrieved Participant for its
share of NEPOOL Expenses that may include the
Management Committee's arbitration costs);
plus
(ii) One half of the common costs of the
arbitration including, but not limited to,
the arbitrator's fee and expenses, the rental
charge for a hearing room and the cost of a
court reporter and transcript, if required.
(3) Hearing Location: Unless otherwise mutually
agreed, the site for all arbitration hearings
shall be NEPOOL counsel's office.
D. Rules and Procedures:
(1) Procedure and Discovery: The procedural rules
(if any), the conduct of the arbitration and the
availability, extent and duration of pre-hearing
discovery (if any), which shall be limited to the
minimum necessary to resolve the matters in
dispute, shall be determined by the arbitrator in
his/her sole discretion at or prior to the
initial hearing.
(2) Pre-hearing Submissions: The Aggrieved Party
shall provide the arbitrator with a brief written
statement of its complaint and a statement of the
remedy or remedies it seeks, accompanied by
copies of any documents or other materials it
wishes the arbitrator to review. The Management
Committee will provide the arbitrator with a copy
of this Agreement and all relevant implementing
documents, a brief description of the action
being arbitrated, copies of the minutes of all
NEPOOL committee meetings at which the matter was
discussed, a brief statement explaining why the
Management Committee believes its decision
should be upheld by the arbitrator, and copies of
any documents or other materials the Management
Committee wishes the arbitrator to review. If
the Management Committee is the Aggrieved Party,
the ISO Board will provide copies of minutes of
the ISO Board meetings at which the matter was
discussed, a brief statement explaining why the
ISO Board believes its decision should be upheld
by the arbitrator, and copies of any documents or
other materials the ISO Board wishes the
arbitrator to review. These submissions shall be
made within five days after the selection of the
arbitrator.
In addition, each party shall designate one or
more individuals to be available to answer
questions the arbitrator may have on the
documents or other materials submitted by that
party. The answers to all such questions shall
be reduced to writing by the party providing the
answer and a copy shall be furnished to the
other party.
(3) Initial Hearing: An initial hearing will be held
no later than 10 days after the selection of the
arbitrator and shall be limited to issues raised
in the pre-hearing filings. The scheduling of
further hearings at the request of either party
or on the arbitrator's own motion shall be within
the sole discretion of the arbitrator.
(4) Decision: The arbitrator's decision shall be
due, unless the deadline is extended by mutual
agreement of the ISO or the aggrieved Participant
and the Management Committee, within sixty days
of the initial hearing or within ninety days of
the Aggrieved Party's initiation of arbitration,
whichever occurs first. The arbitrator shall be
authorized only to interpret and apply the
provisions of this Agreement and the arbitrator
shall have no power to modify or change the
Agreement in any manner.
(5) Effect of Arbitration Decision: The decision of
the arbitrator will be conclusive in a subsequent
regulatory or legal proceeding as to the facts
determined by the arbitrator but will not be
conclusive as to the law or constitute precedent
on issues of law in any subsequent regulatory or
legal proceedings.
An aggrieved party may initiate a proceeding with a
court or with the Commission with respect to the
arbitration or arbitrator's decision only:
o if the arbitration process does not
result in a decision within the time
period specified and the proceeding is
initiated within thirty days after the
expiration of such time period; or
o on the grounds specified in Sections 10
and 11 of Title 9 of the United States
Code for judicial vacation or
modification of an arbitration award and
the proceeding is initiated within
thirty days of the issuance of the
arbitrator's decision.
(6) Other Disputes: In the event a dispute arises
with a Non-Participant which receives or is
eligible to receive service under this Agreement
or the Tariff with respect to such service, the
Non-Participant shall have the right to have the
dispute considered by the Management Committee.
In the event the Non-Participant is aggrieved by
the Management Committee's vote on the dispute,
and the vote has any of the effects specified in
paragraph A of this Section 21.1, the aggrieved
Non-Participant may require that the dispute be
resolved in accordance with this Section 21.1. To
the extent that NEPOOL provides services to
Non-Participants under separate agreements, the
Management Committee shall incorporate the
provisions of this Section by reference in any
such agreement, in which case the term
"Participant" shall be deemed for purposes of the
dispute resolution provisions to include such
Non-Participant purchasers of NEPOOL services.
21.2 Payment of Pool Charges; Termination of Status as Participant.
(a) Any Participant shall have the right to terminate its status as
a Participant upon no less than six months' prior written notice
given to the Secretary of the Management Committee.
(b) If at any time during the term of this Agreement a receiver or
trustee of a Participant is appointed or a Participant is
adjudicated bankrupt or an order for relief is entered under the
Federal Bankruptcy Code against a Participant or if there shall
be filed against any Participant in any court (pursuant to the
Federal Bankruptcy Code or any statute of any state) a petition
in bankruptcy or insolvency or for reorganization or for
appointment of a receiver or trustee of all or a portion of the
Participant's property, and within ninety days after the
filing of such a petition against the Participant, the
Participant shall fail to secure a discharge thereof, or if any
Participant shall file a petition in voluntary bankruptcy or
seeking relief under any provision of any bankruptcy or
insolvency law or shall make an assignment for the benefit of
creditors, the Management Committee may terminate such
Participant's status as a Participant as of any time thereafter.
(c) Each Participant is obligated to pay when due in accordance with
NEPOOL procedures all amounts invoiced to it by NEPOOL, or by
the ISO on behalf of NEPOOL. If a Participant disputes a NEPOOL
invoice in whole or part, it shall be entitled to continue to
receive service under the Agreement and the Tariff, so long as
the Participant (i) continues to make all payments not in
dispute, and (ii) pays into an independent escrow account the
portion of the invoice in dispute, pending resolution of the
dispute. If the Participant fails to meet these two
requirements for continuation of service, NEPOOL may suspend
service, in whole or part, to the Participant sixty days after
the giving of notice to the Participant of NEPOOL's intention to
suspend service, in accordance with Commission policy.
(d) In the event a Participant fails, for any reason other than a
billing dispute as described in subsection (c) of this Section
21.2, to pay when due in accordance with NEPOOL procedures all
amounts invoiced to it by NEPOOL, or by the ISO on behalf of
NEPOOL, or the Participant fails to perform any other
obligation under the Agreement or the Tariff, and such failure
continues for at least ten days, NEPOOL may notify the
Participant that it is in default and may initiate a proceeding
before the Commission to terminate such Participant's
status as a Participant. Pending Commission action on such
termination, NEPOOL may suspend service, in whole or part, to
the Participant on or after 50 days after the giving of such
notice and the initiation of such proceeding, in accordance with
Commission policy, unless the Participant cures the default
within such 50-day period.
(e) If the status of a Participant as a Participant is terminated
pursuant to this Section 21.2 or any other provision of this
Agreement, such former Participant's generation and transmission
facilities shall continue to be subject to such NEPOOL or other
requirements relating to reliability as the Commission
may approve in acting on the termination, for so long as the
Commission may direct. Further, if any of such former
Participant's transmission facilities are required in order to
permit transactions among any of the remaining Participants
pursuant to this Agreement or the Tariff, all pending requests
for transmission service under the Tariff relating to such
Participant's facilities shall be followed to completion under
the Participant's own tariff and all existing service over the
Participant's facilities shall continue to be provided under the
Tariff for a period of three years. It is the intent of this
subsection that no such termination should be allowed to
jeopardize the reliability of the bulk power facilities of any
remaining Participant or should be allowed to impose any
unreasonable financial burden on any remaining Participant.
(f) No such termination of a Participant's status as a Participant
shall affect any obligation of, or to, such former Participant
arising prior to the effective time of such termination.
21.3 Assignment. The Agreement shall inure to the benefit of, and shall be
binding upon, the successors and assigns of the respective signatories
hereto, but no assignment of a signatory's interests or obligations
under the Agreement or any portion thereof shall be made without the
written consent of the Management Committee, except as otherwise
permitted by the Tariff, or except in connection with a sale, merger,
or consolidation which results in the transfer of all or a portion of a
signatory's generation or transmission assets to, and the assumption of
all of the obligations of the signatory under this Agreement (or in the
case of a transfer of a portion of a signatory's generation or
transmission assets, the assumption of obligations of the signatory
under this Agreement with respect to such assets) by, an acquiring or
surviving Entity which either is, or concurrently becomes, a
Participant, or agrees to assume such of the signatory's obligations
with respect to such assets as the Management Committee may reasonably
require, or except in connection with the grant of a security interest
in a Participant's assets as security for bonds or other financing.
21.4 Force Majeure. A Participant shall not be considered to be in default
in respect of any obligation hereunder if prevented from fulfilling
such obligation by an event of Force Majeure. An event of Force
Majeure means any act of God, labor disturbance, act of the public
enemy, war, insurrection, riot, fire, storm or flood, explosion,
breakage or accident to machinery or equipment not due to lack of
proper care or maintenance, any order, regulation or restriction
imposed by a court or governmental military or lawfully established
civilian authorities, or any other cause beyond a Participant's
control, provided that no Force Majeure shall excuse any payment
obligation hereunder. A Participant whose performance under this
Agreement is hindered by an event of Force Majeure shall make all
reasonable efforts to perform its obligations under this Agreement, and
shall promptly notify the Management Committee of the commencement and
end of any event of Force Majeure.
21.5 Waiver of Defaults. No waiver of the performance by a Participant of
any obligation under this Agreement or with respect to any default or
any other matter arising in connection with this Agreement shall be
effective unless given by the Management Committee. Any such waiver by
the Management Committee in any particular instance shall not be deemed
a waiver with respect to any subsequent performance, default or
matter.
21.6 Other Contracts. No Participant shall be a party to any other
agreement which in any manner is inconsistent with its obligations
under this Agreement.
21.7 Liability and Insurance.
(a) Each Participant will indemnify and save each of the other
Participants, its officers, directors and Related Persons (each
an "Indemnified Party") harmless from and against all actions,
claims, demands, costs, damages and liabilities asserted by a
third party against the Indemnified Party seeking
indemnification and arising out of or relating to bodily injury,
death or damage to property caused by or sustained on facilities
owned or controlled by such Participant that are the subject of
this Agreement, or caused by a failure to act in accordance
with this Agreement by the Participant from which
indemnification is sought, except (i) to the extent that such
liabilities result from the negligence or willful misconduct of
the Participant seeking indemnification, and (ii) each
Participant shall be responsible for all claims of its own
employees, agents and servants growing out of any workmen's
compensation law. The amount of any indemnity payment under the
provisions of this Section 21.7 shall be reduced (including,
without limitation, retroactively) by any insurance proceeds or
other amounts actually recovered by the Indemnified Party in
respect of the indemnified action, claim, demand, cost, damage
or liability. Notwithstanding the foregoing, no Participant
shall be liable to any Indemnified Party for any claim for loss
of profits or revenues, attorneys fees or costs, cost of capital
or financing, loss of goodwill or cost of replacement power
arising from a Participant's carrying out, or failing to carry
out, any obligations contemplated by this Agreement or for any
other indirect, incidental, special, consequential, punitive, or
multiple damages or loss; provided, however, that nothing herein
shall reduce or limit the obligations of any Participant to Non-
Participants.
(b) Each Participant shall furnish, at its sole expense, such
insurance coverage as the Management Committee may reasonably
require with respect to its obligation pursuant to Section
21.7(a).
21.8 Records and Information. Each Participant shall keep such records as
may reasonably be required by a NEPOOL committee or the System
Operator, and shall furnish to such committee or the System Operator
such records, reports and information (including forecasts) as it may
reasonably require, provided the confidentiality thereof is protected
in accordance with NEPOOL's information policy.
21.9 Consistency with NPCC and NERC Standards. The standards, criteria and
rules adopted by NEPOOL committees under this Agreement shall be
consistent with those adopted by the Northeast Power Coordinating
Council and the North American Electric Reliability Council or any
successor to either.
21.10 Construction.
(a) The Table of Contents contained in this Agreement and the
headings of the Sections of this Agreement are intended for
convenience only and shall not be deemed to be part of this
Agreement or considered in construing it.
(b) This Agreement shall be interpreted, construed and governed in
accordance with the laws of the State of Connecticut.
21.11 Amendment. This Agreement, including the Tariff, and any attachment or
exhibit hereto may be amended from time to time by an instrument signed
by Participants having aggregate Voting Shares equal to at least 70% of
the Voting Shares of all Participants; provided that an amendment shall
not become effective if two or more Participants which are not Related
Persons of each other and which have aggregate Voting Shares at least
equal to 20% of the Voting Shares of all Participants give notice
to the Secretary of the Management Committee that they object to the
amendment within thirty days after the giving of notice to them of the
prospective effectiveness of the amendment. In determining whether the
20% requirement has been met, the following limitation shall be
applied: if the Voting Share of any objecting Participant exceeds 18%,
such Participant's Voting Share for this purpose shall be reduced to
18%.
Any amendment to this Agreement shall be in writing and shall become
effective on the date specified in the amendment, subject to acceptance
or approval by the Commission, whether or not the remaining
Participants agree, provided that the remaining Participants shall have
been given written notice of the prospective effectiveness of
such amendment at least thirty days prior to the effective date of such
amendment, and provided further, that such an amendment does not impose
a burden on such remaining Participants which is materially different
in nature or materially greater in degree than that imposed on the
Participants which have agreed to such amendment. Such notice
shall be accompanied by a form of notice which may be signed and
returned to the Secretary of the Management Committee to state a
Participant's objection to the amendment. Any Participant which has
given notice of its objection to such amendment shall be entitled to
terminate its status as a Participant effective as of the effective
date of such amendment by giving to the Secretary of the Management
Committee written notice of such termination within thirty days after
notice has been given to it of the prospective effectiveness of such
amendment. Effective as of thirty days after the giving of such notice
of the prospective effectiveness of such amendment, any Participant
which has not previously given notice of its objection to such
amendment and which does not give notice of termination of status as
herein provided within such thirty-day period shall thereafter be bound
by such amendment; provided that nothing herein shall be construed to
prevent any Participant from challenging any proposed amendment before
a court or regulatory agency on the ground that the proposed amendment
or its application to the Participant is in violation of law or of this
Section 21.11.
21.12 Termination. This Agreement shall continue in effect until terminated,
in accordance with the Commission's regulations, by Participants
represented by members of the Management Committee having Voting Shares
equal to at least 70% of the Voting Shares of all Participants. No such
termination shall relieve any party of any obligation arising prior to
the effective time of such termination.
21.13 Notices to Participants.
(a) Any notice, demand, request or other communication required or
authorized by this Agreement to be given to any Participant
shall be in writing, and shall be (1) personally delivered to
the Management Committee member or alternate appointed by the
Participant; (2) mailed, postage prepaid, to the Participant at
the address of its member on the Management Committee as set out
in the NEPOOL roster; (3) sent by facsimile ("faxed") to the
Participant at the fax number of its member on the Management
Committee as set out in the NEPOOL roster; or (4) delivered
electronically to the Participant at the electronic mail address
of its member on the Management Committee or at the address of
its principal office. The designation of any such address may
be changed at any time by written notice delivered to the
Secretary of the Management Committee, who shall cause such
change to be reflected in the NEPOOL roster.
(b) Any notice, demand, request or other communication required or
authorized by this Agreement to be given to any NEPOOL committee
shall be in writing and shall be delivered to the Secretary of
the committee. Each such notice shall either be personally
delivered to the Secretary, mailed, postage prepaid, or sent
by facsimile ("faxed") to the Secretary at the address or fax
number set out in the NEPOOL roster, or delivered electronically
to the Secretary. The designation of such address may be changed
at any time by written notice delivered to each Participant.
(c) Any such notice, demand or request so addressed and mailed by
registered or certified mail shall be deemed to be given when so
mailed. Any such notice, demand, request or other communication
sent by regular mail or by facsimile ("faxed") or delivered
electronically shall be deemed given when received by
the Participant or by the Secretary of the committee, whichever
is applicable.
21.14 Severability and Renegotiation. If any provision of this Agreement is
held by a court or regulatory authority of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall continue in full
force and effect and shall in no way be affected, impaired or
invalidated, except as otherwise explicitly provided in this Section.
If any provision of this Agreement is held by a court or regulatory
authority of competent jurisdiction to be invalid, void or
unenforceable, or if the Agreement is modified or conditioned by a
regulatory authority exercising jurisdiction over this Agreement, the
Participants shall endeavor in good faith to negotiate such amendment
or amendments to this Agreement as will restore the relative benefits
and obligations of the Participants under this Agreement immediately
prior to such holding, modification or condition. If after sixty days
such negotiations are unsuccessful the Participants may exercise their
withdrawal or termination rights under this Agreement.
21.15 No Third-Party Beneficiaries. Except for the provisions of this
Agreement and the Tariff which provide for service to Non-Participants,
this Agreement is intended to be solely for the benefit of the
Participants and their respective successors and permitted assigns and,
unless expressly stated herein, is not intended to and shall not confer
any rights or benefits on any third party (other than successors and
permitted assigns) not a signatory hereto.
21.16 Counterparts. This Agreement may be executed in any number of
counterparts, and each executed counterpart shall have the same force
and effect as an original instrument and as if all the parties to all
of the counterparts had signed the same instrument. Any signature page
of this Agreement may be detached from any counterpart of this
Agreement without impairing the legal effect of any signatures thereon,
and may be attached to another counterpart of this Agreement identical
in form hereto but having attached to it one or more signature pages.
IN WITNESS WHEREOF, the signatories have caused this Agreement to be
executed by their duly authorized officers or representatives.
ATTACHMENT A
TO RESTATED
NEPOOL AGREEMENT
METHODOLOGY FOR
DETERMINATION OF
TRANSMISSION FLOWS
The methodology for determining parallel path transmission flows to be
used in determining the distribution of revenues received for Regional Network
Service provided during the Transition Period, or for Through or Out Service,
is as follows, and shall be determined (1) on the basis of the flows for all
transactions in the NEPOOL Control Area ("Regional Flows") for the purpose of
allocating during the Transition Period Regional Network Service revenues, and
(2) on the basis of the flows for the particular transaction ("Transaction
Flows") for the purpose of allocating revenues during or after the Transition
Period from the furnishing of Through or Out Service:
A. Responsibility for Calculations
The calculation of megawatt mile allocations in accordance with this
methodology shall be performed under the direction of the Regional Transmission
Planning Committee ("RTPC").
B. Periodic Review
Calculations of MW-Mile allocations shall be performed whenever
significant changes to the transmission system load flows, as determined by the
RTPC, occur.
C. Facilities Included in the Analysis
1. Transmission Lines
A calculation of MW-miles shall be determined for all
PTF lines.
2. Generators
The analysis shall include all generators with a Winter
Capability equal to or greater than 10.0 MW. Multiple
generators connected to a single bus with a total Winter
Capability equal to or greater than 10.0 MW shall also
be included.
3. Transformers
All transformers connecting PTF transmission lines shall
be included in the analysis.
D. Determination of Rate Distribution
1. General
Modeling of the transmission system shall be performed
using a system simulation program and associated cases
as approved by the RTPC.
2. Determination of Regional Flows
The change in real power flow (MW) over each
transmission line and transformer shall be determined
for each generator (or group of generators on a single
bus) by determining the absolute value of the
difference between the flows on each facility with the
generator(s) modeled off and while operating at its net
Winter Capability. In addition, a generator shall be
simulated at each transmission line tie to the NEPOOL
Control Area and changes in flow determined for this
generator off or while generating at a level of 100 MW.
Loads throughout the NEPOOL Control Area shall be
proportionally scaled to account for differences in
generator output and electrical losses. The changes in
flow shall be multiplied by the length of each
respective line. Changes in flow through transformers
shall be multiplied by a factor of five. Changes in
flow through phase-shifting transformers shall be
multiplied by a factor of ten. The resulting values
represent the MW-miles associated with each facility.
3. Determination of Transaction Flows
a. Definition of Supply and Receipt Areas
For the purposes of these calculations, areas of
supply and receipt shall be determined by the
RTPC. These areas shall be based on the system
boundaries of each Local Network.
b. Calculation of MW-Miles
The change in real power flow (MW) over each
transmission line and transformer shall be
determined for each combination of supply and
receipt areas by determining the absolute value
of the difference between the flows on each
facility following a scaled increase of the
supplying areas generation by 100 MW. Loads in
the area of receipt shall be scaled to account
for changes in generation and electrical losses.
In instances where the areas of supply and/or
receipt are outside the NEPOOL Control Area, the
changes in real power flow will be determined
only for facilities within the NEPOOL Control
Area. The changes in flow shall then be
multiplied by the length of each respective line.
Changes in flow through transformers shall be
multiplied by a factor of five. Changes in flow
through phase-shifting transformers shall
be multiplied by a factor of ten. The resulting
values represent the MW-miles associated with
each facility.
4. Assignment of MW-Miles to Participants
Each Participant shall have assigned to it the MW-miles
associated with each PTF facility for which it has full
ownership. Each Participant shall also be assigned MW-
miles in proportion to the percentage of its ownership
of jointly-owned facilities or the percentage of its
support for facilities for which it provides support.
ATTACHMENT B
TO RESTATED
NEPOOL
AGREEMENT
NEPOOL OPEN ACCESS
TRANSMISSION TARIFF
NEPOOL Open Access Transmission Tariff
Original Sheet No. 1
TABLE OF CONTENTS
I. COMMON SERVICE PROVISIONS . . . . . . . . . . . . . . . . . . . . . . .10
1 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . .10
1.1 Administrative Costs. . . . . . . . . . . . . . . . . . . . .10
1.2 Agreement . . . . . . . . . . . . . . . . . . . . . . . . . .10
1.3 Ancillary Services. . . . . . . . . . . . . . . . . . . . . .11
1.4 Annual Transmission Revenue Requirements. . . . . . . . . . .11
1.5 Application . . . . . . . . . . . . . . . . . . . . . . . . .11
1.6 Commission. . . . . . . . . . . . . . . . . . . . . . . . . .11
1.7 Completed Application . . . . . . . . . . . . . . . . . . . .12
1.8 Control Area. . . . . . . . . . . . . . . . . . . . . . . . .12
1.9 Curtailment . . . . . . . . . . . . . . . . . . . . . . . . .13
1.10 Delivering Party . . . . . . . . . . . . . . . . . . . .13
1.11 Designated Agent . . . . . . . . . . . . . . . . . . . .13
1.12 Direct Assignment Facilities . . . . . . . . . . . . . .13
1.13 Eligible Customer. . . . . . . . . . . . . . . . . . . .14
1.14 Energy Imbalance Service . . . . . . . . . . . . . . . .15
1.15 Excepted Transaction . . . . . . . . . . . . . . . . . .15
1.16 Facilities Study . . . . . . . . . . . . . . . . . . . .15
1.17 Firm Point-To-Point Transmission Service . . . . . . . .15
1.18 Firm Transmission Service. . . . . . . . . . . . . . . .15
1.19 Good Utility Practice. . . . . . . . . . . . . . . . . .16
1.20 Interest . . . . . . . . . . . . . . . . . . . . . . . .16
1.21 Interruption . . . . . . . . . . . . . . . . . . . . . .17
1.22 ISO. . . . . . . . . . . . . . . . . . . . . . . . . . .17
1.23 Load Ratio Share . . . . . . . . . . . . . . . . . . . .17
1.24 Load Shedding. . . . . . . . . . . . . . . . . . . . . .17
1.25 Local Network. . . . . . . . . . . . . . . . . . . . . .17
1.26 Local Network Service. . . . . . . . . . . . . . . . . .18
1.27 Local Point-To-Point Service . . . . . . . . . . . . . .18
1.28 Long-Term Firm Point-To-Point Transmission
Service . . . . . . . . . . . . . . . . . . . . . . . .19
1.29 Native Load Customers. . . . . . . . . . . . . . . . . .19
1.30 NEPOOL . . . . . . . . . . . . . . . . . . . . . . . . .19
1.31 NEPOOL Control Area. . . . . . . . . . . . . . . . . . .19
1.32 NEPOOL Transmission System . . . . . . . . . . . . . . .20
1.33 Network Customer . . . . . . . . . . . . . . . . . . . .20
1.34 Network Integration Transmission Service . . . . . . . .20
1.35 Network Load . . . . . . . . . . . . . . . . . . . . . .20
NEPOOL Open Access Transmission Tariff
Original Sheet No. 2
1.36 Network Operating Agreement. . . . . . . . . . . . . . .20
1.37 Network Operating Committee. . . . . . . . . . . . . . .21
1.38 Network Resource . . . . . . . . . . . . . . . . . . . .21
1.39 Network Upgrades . . . . . . . . . . . . . . . . . . . .22
1.40 Non-Firm Point-to-Point Transmission Service:. . . . . .22
1.41 Non-Participant. . . . . . . . . . . . . . . . . . . . .22
1.42 Non-PTF. . . . . . . . . . . . . . . . . . . . . . . . .22
1.43 Open Access Same-Time Information System
(OASIS) . . . . . . . . . . . . . . . . . . . . . . . .22
1.44 Operating Reserve - 10-Minute Non-Spinning
Reserve Service . . . . . . . . . . . . . . . . . . . .23
1.45 Operating Reserve - 10-Minute Spinning Reserve Service .23
1.46 Operating Reserve - 30-Minute Reserve Service. . . . . .23
1.47 Participant. . . . . . . . . . . . . . . . . . . . . . .23
1.48 Participant RNS Rate . . . . . . . . . . . . . . . . . .23
1.49 Point(s) of Delivery . . . . . . . . . . . . . . . . . .23
1.50 Point(s) of Receipt. . . . . . . . . . . . . . . . . . .24
1.51 Point-To-Point Transmission Service. . . . . . . . . . .24
1.52 Pool PTF Rate. . . . . . . . . . . . . . . . . . . . . .24
1.53 Pool RNS Rate. . . . . . . . . . . . . . . . . . . . . .24
1.54 Power Purchaser. . . . . . . . . . . . . . . . . . . . .25
1.55 PTF or Pool Transmission Facilities. . . . . . . . . . .25
1.56 Pre-1997 PTF Rate. . . . . . . . . . . . . . . . . . . .25
1.57 Reactive Supply and Voltage Control From
Generation Sources Service . . . . . . . . . . . . . . .25
1.58 Receiving Party. . . . . . . . . . . . . . . . . . . . .25
1.59 Regional Network Service . . . . . . . . . . . . . . . .26
1.60 Regulation and Frequency Response Service. . . . . . . .26
1.61 Reserved Capacity. . . . . . . . . . . . . . . . . . . .26
1.62 Scheduling, System Control and Dispatch
Service. . . . . . . . . . . . . . . . . . . . . . . . .26
1.63 Service Agreement. . . . . . . . . . . . . . . . . . . .26
1.64 Service Commencement Date. . . . . . . . . . . . . . . .27
1.65 Short-Term Firm Point-To-Point Transmission
Service . . . . . . . . . . . . . . . . . . . . . . . .27
1.66 System Impact Study. . . . . . . . . . . . . . . . . . .27
1.67 System Operator. . . . . . . . . . . . . . . . . . . . .28
1.68 Tariff . . . . . . . . . . . . . . . . . . . . . . . . .28
1.69 Third-Party Sale . . . . . . . . . . . . . . . . . . . .28
1.70 Through or Out Service . . . . . . . . . . . . . . . . .28
NEPOOL Open Access Transmission Tariff
Original Sheet No. 3
1.71 Tie Benefit. . . . . . . . . . . . . . . . . . . . . . .29
1.72 Tie Benefit Service. . . . . . . . . . . . . . . . . . .29
1.73 Transition Period. . . . . . . . . . . . . . . . . . . .30
1.74 Transmission Customer. . . . . . . . . . . . . . . . . .30
1.75 Transmission Provider. . . . . . . . . . . . . . . . . .31
1.76 Year . . . . . . . . . . . . . . . . . . . . . . . . . .31
2 Purpose of This Tariff . . . . . . . . . . . . . . . . . . . . . .31
3 Initial Allocation and Renewal Procedures. . . . . . . . . . . . .33
3.1 Initial Allocation of Available Transmission Capability . . .33
3.2 Reservation Priority For Existing Firm Service Customers. . .34
4 Ancillary Services . . . . . . . . . . . . . . . . . . . . . . . .36
4.1 Scheduling, System Control and Dispatch
Service . . . . . . . . . . . . . . . . . . . . . . . . . . .38
4.2 Reactive Supply and Voltage Control from
Generation Sources Service. . . . . . . . . . . . . . . . . .38
4.3 Regulation and Frequency Response Service . . . . . . . . . .38
4.4 Energy Imbalance Service. . . . . . . . . . . . . . . . . . .38
4.5 Operating Reserve - 10 Minute Spinning Reserve Service. . . .38
4.6 Operating Reserve - 10 Minute Non-Spinning
Reserve Service . . . . . . . . . . . . . . . . . . . . . . .39
4.7 Operating Reserve - 30 Minute Reserve Service . . . . . . . .39
5 Open Access Same-Time Information System (OASIS) . . . . . . . . .39
6 Local Furnishing and Other Tax-Exempt Bonds. . . . . . . . . . . .40
6.1 Participants That Own Facilities Financed by
Local Furnishing or Other Tax-Exempt Bonds. . . . . . . . . .40
6.2 Alternative Procedures for Requesting
Transmission Service - Local Furnishing Bonds . . . . . . . .41
Transmission Service - Other Tax-Exempt Bonds . . . . . . . .42
7 Reciprocity. . . . . . . . . . . . . . . . . . . . . . . . . . . .43
8 Billing and Payment; Accounting. . . . . . . . . . . . . . . . . .44
8.1 Participant Billing Procedure . . . . . . . . . . . . . . . .44
8.2 Non-Participant Billing Procedure . . . . . . . . . . . . . .44
8.3 Interest on Unpaid Balances . . . . . . . . . . . . . . . . .45
8.4 Customer Default. . . . . . . . . . . . . . . . . . . . . . .46
8.5 Study Costs and Revenues. . . . . . . . . . . . . . . . . . .47
9 Regulatory Filings . . . . . . . . . . . . . . . . . . . . . . . .48
NEPOOL Open Access Transmission Tariff
Original Sheet No. 4
10 Force Majeure and Indemnification. . . . . . . . . . . . . . . . .49
10.1 Force Majeure. . . . . . . . . . . . . . . . . . . . . .49
10.2 Indemnification. . . . . . . . . . . . . . . . . . . . .50
11 Creditworthiness . . . . . . . . . . . . . . . . . . . . . . . . .51
12 Dispute Resolution Procedures. . . . . . . . . . . . . . . . . . .52
12.1 Internal Dispute Resolution Procedures . . . . . . . . .52
12.2 Rights Under The Federal Power Act . . . . . . . . . . .53
13 Stranded Costs . . . . . . . . . . . . . . . . . . . . . . . . . .53
13.1 General. . . . . . . . . . . . . . . . . . . . . . . . .53
13.2 Commission Requirements. . . . . . . . . . . . . . . . .55
13.3 Wholesale Contracts. . . . . . . . . . . . . . . . . . .55
13.4 Right to Seek or Contest Recovery Unimpaired . . . . . .55
II. REGIONAL NETWORK SERVICE. . . . . . . . . . . . . . . . . . . . . . . .56
14 Nature of Regional Network Service . . . . . . . . . . . . . . . .56
15 Availability of Regional Network Service . . . . . . . . . . . . .57
15.1 Provision of Regional Network Service. . . . . . . . . .57
15.2 Eligibility to Receive Regional Network
Service . . . . . . . . . . . . . . . . . . . . . . . .58
16 Payment for Regional Network Service . . . . . . . . . . . . . . .59
17 Procedure for Obtaining Regional Network Service . . . . . . . . .60
III. THROUGH OR OUT SERVICE; TIE BENEFIT SERVICE. . . . . . . . . . . .62
18 Through or Out Service . . . . . . . . . . . . . . . . . . . . . .62
18.1 Provision of Through or Out Service. . . . . . . . . . .62
18.2 Use of Through or Out Service. . . . . . . . . . . . . .62
19 Payment for Through or Out Service . . . . . . . . . . . . . . . .63
20 Reservation of Capacity for Through or Out Service . . . . . . . .64
21 Tie Benefit Service. . . . . . . . . . . . . . . . . . . . . . . .65
22 Payment for Tie Benefit Service. . . . . . . . . . . . . . . . . .65
IV. SERVICE DURING THE TRANSITION PERIOD;
EXCEPTED TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . .66
23 Transition Arrangements. . . . . . . . . . . . . . . . . . . . . .66
24 Transition Payments. . . . . . . . . . . . . . . . . . . . . . . .66
25 Excepted Transactions. . . . . . . . . . . . . . . . . . . . . . .67
V. THROUGH OR OUT SERVICE AS POINT-TO-POINT TRANSMISSION SERVICE . . . . .73
Preamble . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
26 Nature of Review . . . . . . . . . . . . . . . . . . . . . . . . .74
27 Nature of Firm Point-To-Point Transmission
Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
27.1 Term . . . . . . . . . . . . . . . . . . . . . . . . . .75
27.2 Reservation Priority . . . . . . . . . . . . . . . . . .75
NEPOOL Open Access Transmission Tariff
Original Sheet No. 5
27.3 Use of Firm Point-To-Point Transmission
Service by the Participants That Own PTF. . . . . . . .77
27.4 Service Agreements . . . . . . . . . . . . . . . . . . .77
27.5 Transmission Customer Obligations for Facility Additions
or Redispatch Costs. . . . . . . . . . . . . . . . . . .78
27.6 Curtailment of Firm Transmission Service . . . . . . . .79
27.7 Classification of Firm Point-To-Point
Transmission Service . . . . . . . . . . . . . . . . . .81
27.8 Scheduling of Firm Point-To-Point Transmission Service .84
28 Nature of Non-Firm Point-To-Point Transmission
Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
28.1 Term . . . . . . . . . . . . . . . . . . . . . . . . . .85
28.2 Reservation Priority . . . . . . . . . . . . . . . . . .86
28.3 Use of Non-Firm Point-To-Point Transmission
Service by the Transmission Provider . . . . . . . . . .87
28.4 Service Agreements . . . . . . . . . . . . . . . . . . .88
28.5 Classification of Non-Firm Point-To-Point Transmission
Service. . . . . . . . . . . . . . . . . . . . . . . . .88
28.6 Scheduling of Non-Firm Point-to-Point
Transmission Service:. . . . . . . . . . . . . . . . . .90
28.7 Curtailment or Interruption of Service . . . . . . . . .92
29 Service Availability . . . . . . . . . . . . . . . . . . . . . . .94
29.1 General Conditions . . . . . . . . . . . . . . . . . . .94
29.2 Determination of Available Transmission
Capability . . . . . . . . . . . . . . . . . . . . . . .94
29.3 Initiating Service in the Absence of an
Executed Service Agreement . . . . . . . . . . . . . . .95
29.4 Obligation to Provide Transmission Service that Requires
Expansion or Modification of the Transmission System . .96
29.5 Deferral of Service. . . . . . . . . . . . . . . . . . .97
29.6 Real Power Losses. . . . . . . . . . . . . . . . . . . .97
30 Transmission Customer Responsibilities . . . . . . . . . . . . . .98
30.1 Conditions Required of Transmission Customers. . . . . .98
30.2 Transmission Customer Responsibility for
Third-Party Arrangements. . . . . . . . . . . . . . . .99
31 Procedures for Arranging Firm Point-To-Point
Transmission Service . . . . . . . . . . . . . . . . . . . . . . 100
31.1 Application. . . . . . . . . . . . . . . . . . . . . . 100
31.2 Completed Application. . . . . . . . . . . . . . . . . 101
NEPOOL Open Access Transmission Tariff
Original Sheet No. 6
31.3 Deposit. . . . . . . . . . . . . . . . . . . . . . . . 103
31.4 Notice of Deficient Application. . . . . . . . . . . . 105
31.5 Response to a Completed Application. . . . . . . . . . 106
31.6 Execution of Service Agreement . . . . . . . . . . . . 107
31.7 Extensions for Commencement of Service . . . . . . . . 108
32 Procedures for Arranging Non-Firm Point-To-Point Transmission
Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
32.1 Application. . . . . . . . . . . . . . . . . . . . . . 109
32.2 Completed Application: . . . . . . . . . . . . . . . . 110
32.3 Reservation of Non-Firm Point-To-Point
Transmission Service: .. . . . . . . . . . . . . . . . 111
32.4 Determination of Available Transmission
Capability . . . . . . . . . . . . . . . . . . . . . . 112
33 Additional Study Procedures For Firm Point-To-Point Transmission
Service Requests . . . . . . . . . . . . . . . . . . . . . . . . 113
33.1 Notice of Need for System Impact Study . . . . . . . . 113
33.2 System Impact Study Agreement and Cost
Reimbursement. . . . . . . . . . . . . . . . . . . . . 115
33.3 System Impact Study Procedures . . . . . . . . . . . . 116
33.4 Facilities Study Procedures. . . . . . . . . . . . . . 118
33.5 Facilities Study Modifications . . . . . . . . . . . . 121
33.6 Due Diligence in Completing New Facilities . . . . . . 121
33.7 Partial Interim Service. . . . . . . . . . . . . . . . 122
33.8 Expedited Procedures for New Facilities. . . . . . . . 123
34 Procedures if New Transmission Facilities for Firm
Point-To-Point Transmission Service Cannot be
Completed. . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
34.1 Delays in Construction of New Facilities . . . . . . . 124
34.2 Alternatives to the Original Facility
Additions. . . . . . . . . . . . . . . . . . . . . . . 125
34.3 Refund Obligation for Unfinished Facility
Additions. . . . . . . . . . . . . . . . . . . . . . . 127
35 Provisions Relating to Transmission Construction and Services on
the Systems of Other Utilities . . . . . . . . . . . . . . . . . 128
35.1 Responsibility for Third-Party System
Additions. . . . . . . . . . . . . . . . . . . . . . . 128
35.2 Coordination of Third-Party System Additions . . . . . 128
36 Changes in Service Specifications. . . . . . . . . . . . . . . . 130
36.1 Modifications on a Non-Firm Basis. . . . . . . . . . . 130
36.2 Modification on a Firm Basis . . . . . . . . . . . . . 132
NEPOOL Open Access Transmission Tariff
Original Sheet No. 7
37 Sale, Assignment or Transfer of Transmission
Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
37.1 Procedures for Sale, Assignment or Transfer of Service 133
37.2 Limitations on Assignment or Transfer of
Service. . . . . . . . . . . . . . . . . . . . . . . . 134
37.3 Information on Assignment or Transfer of
Service. . . . . . . . . . . . . . . . . . . . . . . . 135
38 Metering and Power Factor Correction at Receipt and Delivery
Points(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
38.1 Transmission Customer Obligations. . . . . . . . . . . 135
38.2 NEPOOL Access to Metering Data . . . . . . . . . . . . 136
38.3 Power Factor . . . . . . . . . . . . . . . . . . . . . 136
39 Compensation for New Facilities and Redispatch
Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
VI. REGIONAL NETWORK SERVICE (INCLUDING NETWORK INTEGRATION TRANSMISSION
SERVICE). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
40 Nature of Network Integration Transmission
Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
40.1 Scope of Service . . . . . . . . . . . . . . . . . . . 138
40.2 Transmission Provider Responsibilities . . . . . . . . 138
40.3 Network Integration Transmission Service . . . . . . . 139
40.4 Secondary Service. . . . . . . . . . . . . . . . . . . 140
40.5 Real Power Losses. . . . . . . . . . . . . . . . . . . 140
40.6 Restrictions on Use of Service . . . . . . . . . . . . 141
41 Initiating Service . . . . . . . . . . . . . . . . . . . . . . . 141
41.1 Condition Precedent for Receiving Service. . . . . . . 141
41.2 Application Procedures . . . . . . . . . . . . . . . . 142
41.3 Technical Arrangements to be Completed Prior to
Commencement of Service. . . . . . . . . . . . . . . . 147
41.4 Network Customer Facilities. . . . . . . . . . . . . . 148
41.5 Filing of Service Agreement. . . . . . . . . . . . . . 148
42 Network Resources. . . . . . . . . . . . . . . . . . . . . . . . 148
42.1 Designation of Network Resources . . . . . . . . . . . 148
42.2 Designation of New Network Resources . . . . . . . . . 149
42.3 Termination of Network Resources . . . . . . . . . . . 149
42.4 Operation of Network Resources . . . . . . . . . . . . 150
42.5 Network Customer Redispatch Obligation . . . . . . . . 150
42.6 Transmission Arrangements for Network
Resources Not Physically Interconnected With
The NEPOOL Transmission System. . . . . . . . . . . . 150
NEPOOL Open Access Transmission Tariff
Original Sheet No. 8
42.7 Limitation on Designation of Network
Resources. . . . . . . . . . . . . . . . . . . . . . . 151
42.8 Use of Interface Capacity by the Network
Customer . . . . . . . . . . . . . . . . . . . . . . . 151
43 Designation of Network Load. . . . . . . . . . . . . . . . . . . 152
43.1 Network Load . . . . . . . . . . . . . . . . . . . . . 152
43.2 New Network Loads Connected With the NEPOOL
Transmission System . . . . . . . . . . . . . . . . . 152
43.3 Network Load Not Physically Interconnected
with the NEPOOL Transmission System . . . . . . . . 153
43.4 New Interconnection Points . . . . . . . . . . . . . . 154
43.5 Changes in Service Requests. . . . . . . . . . . . . . 155
43.6 Annual Load and Resource Information Updates . . . . . 155
44 Additional Study Procedures For Network Integration Transmission
Service Requests . . . . . . . . . . . . . . . . . . . . . . . . 156
44.1 Notice of Need for System Impact Study . . . . . . . . 156
44.2 System Impact Study Agreement and Cost
Reimbursement . . . . . . . . . . . . . . . . . . . . . . . 158
44.3 System Impact Study Procedures . . . . . . . . . . . . 160
44.4 Facilities Study Procedures. . . . . . . . . . . . . . 161
45 Load Shedding and Curtailments . . . . . . . . . . . . . . . . . 164
45.1 Procedures . . . . . . . . . . . . . . . . . . . . . . 164
45.2 Transmission Constraints . . . . . . . . . . . . . . . 164
45.3 Cost Responsibility for Relieving Transmission
Constraints. . . . . . . . . . . . . . . . . . . . . . 166
45.4 Curtailments of Scheduled Deliveries . . . . . . . . . 166
45.5 Allocation of Curtailments . . . . . . . . . . . . . . 166
45.6 Load Shedding. . . . . . . . . . . . . . . . . . . . . 167
45.7 System Reliability . . . . . . . . . . . . . . . . . . 167
46 Rates and Charges . . . . . . . . . . . . . . . . . . . . . . . 169
46.1 Determination of Network Customer's Monthly
Network Load. .. . . . . . . . . . . . . . . . . . . . 169
46.2 Redispatch Charge. . . . . . . . . . . . . . . . . . . 170
47 Operating Arrangements . . . . . . . . . . . . . . . . . . . . . 170
47.1 Operation under The Network Operating
Agreement . . . . . . . . . . . . . . . . . . . . . . 170
47.2 Network Operating Agreement. . . . . . . . . . . . . . 171
47.3 Network Operating Committee. . . . . . . . . . . . . . 173
NEPOOL Open Access Transmission Tariff
Original Sheet No. 9
SCHEDULE 1 Scheduling, System Control and Dispatch Service . . . . . . 174
SCHEDULE 2 Reactive Supply and Voltage Control from
Generation Sources Service . . . . . . . . . . . . . . . . 177
SCHEDULE 3 Regulation and Frequency Response Service
(Automatic Generator Control) . . . . . . . . . . . . . . . 179
SCHEDULE 4 Energy Imbalance Service. . . . . . . . . . . . . . . . . . 182
SCHEDULE 5 Operating Reserve - 10-Minute Spinning Reserve Service. . . 183
SCHEDULE 6 Operating Reserve - 10-Minute Non-Spinning Reserve Service. 186
SCHEDULE 7 Operating Reserve - 30-Minute Reserve Service . . . . . . . 189
SCHEDULE 8 Through or Out Service -The Pool PTF Rate . . . . . . . . . 192
SCHEDULE 9 Regional Network Service. . . . . . . . . . . . . . . . . . 194
SCHEDULE 10 Tie Benefit Service . . . . . . . . . . . . . . . . . . . . 201
SCHEDULE 11 Transition Payments . . . . . . . . . . . . . . . . . . . . 202
ATTACHMENT A Form of Service Agreement for Through or Out Service or
Other Point-To-PointTransmission Service . . . . . . . . . 204
ATTACHMENT B Form Of Service Agreement For Regional Network Service,
including Network Integration Transmission Service . . . . 209
ATTACHMENT C Methodology To Assess Available Transmission Capability . . 211
ATTACHMENT D Methodology for Completing a System Impact
Study . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
ATTACHMENT E Local Networks. . . . . . . . . . . . . . . . . . . . . . . 215
ATTACHMENT F Annual Transmission Revenue Requirements. . . . . . . . . . 216
ATTACHMENT G List Of Excepted Transaction Agreements . . . . . . . . . . 223
ATTACHMENT G-1 Agreements re Local Network Service . . . . . . . . . . . . 250
ATTACHMENT H Form of Network Operating Agreement . . . . . . . . . . . . 251
ATTACHMENT I Form of System Impact Study Agreement . . . . . . . . . . . 263
ATTACHMENT J Form of Facilities Study Agreement. . . . . . . . . . . . . 271
FILE NO. 70-
NEPOOL Open Access Transmission Tariff
Original Sheet No. 10
I. COMMON SERVICE PROVISIONS
1 Definitions
Whenever used in this Tariff, in either the singular or plural number,
the following capitalized terms shall have the meanings specified in
Sections 1.1 to 1.76 of this Part I. Terms used in this Tariff but not
defined in Sections 1.1 to 1.76 which are defined in the Agreement
shall have the meanings specified in the Agreement. Terms used in this
Tariff that are not defined in this Tariff or in the Agreement shall
have the meanings customarily attributed to such terms by the electric
utility industry in New England.
1.1 Administrative Costs: Those costs incurred in connection with
the review of Applications for transmission service and the
carrying out of System Impact Studies and Facilities Studies.
1.2 Agreement: The Restated New England Power Pool Agreement dated
as of September 1, 1971, as amended and restated from time to
time, of which this Tariff forms a part.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 11
1.3 Ancillary Services: Those services that are necessary to
support the transmission of electric capacity and energy from
resources to loads while maintaining reliable operation of the
NEPOOL Transmission System in accordance with Good Utility
Practice.
1.4 Annual Transmission Revenue Requirements: The annual revenue
requirements of a Participant's PTF or of all Participants' PTF
for purposes of this Tariff shall be the amount determined in
accordance with Attachment F to this Tariff.
1.5 Application: A written request by an Eligible Customer for
transmission service pursuant to the provisions of this Tariff.
1.6 Commission: The Federal Energy Regulatory Commission and any
regulatory agency succeeding to substantially all of the
authority of the Federal Energy Regulatory Commission with
respect to electric power.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 12
1.7 Completed Application: An Application that satisfies all of the
information and other requirements of this Tariff, including any
required deposit.
1.8 Control Area: An electric power system or combination of
electric power systems to which a common automatic generation
control scheme is applied in order to:
(l) match, at all times, the power output of the generators
within the electric power system(s) and capacity and
energy purchased from entities outside the electric
power system(s), with the load within the electric power
system(s);
(2) maintain scheduled interchange with other Control Areas,
within the limits of Good Utility Practice;
(3) maintain the frequency of the electric power system(s)
within reasonable limits in accordance with Good Utility
Practice and the criteria or the applicable regional
reliability council or the North American Electric
Reliability Council; and
NEPOOL Open Access Transmission Tariff
Original Sheet No. 13
(4) provide sufficient generating capacity to maintain
operating reserves in accordance with Good Utility
Practice.
1.9 Curtailment: A reduction in firm or non-firm transmission
service in response to a transmission capacity shortage as a
result of system reliability conditions.
1.10 Delivering Party: The entity supplying capacity and/or energy
to be transmitted at Point(s) of Receipt under this Tariff.
1.11 Designated Agent: Any entity that performs actions or functions
required under the Tariff on behalf of NEPOOL, an Eligible
Customer, or a Transmission Customer.
1.12 Direct Assignment Facilities: Facilities or portions of
facilities that are constructed for the sole use/benefit of a
particular Transmission Customer requesting service under this
Tariff. Direct Assignment Facilities shall be specified in the
Service Agreement that governs service to the Transmission
Customer, shall be subject
NEPOOL Open Access Transmission Tariff
Original Sheet No. 14
to applicable Commission requirements and shall be paid for by
the Transmission Customer in accordance with the Service
Agreement and not under this Tariff.
1.13 Eligible Customer: (i) any Participant; (ii) any electric
utility (including any power marketer), Federal power marketing
agency, or any other entity generating electric energy for sale
or for resale; provided that electric energy sold or produced by
such entity is electric energy produced in the United States,
Canada or Mexico; and provided further, however, that such
entity shall not be eligible to receive transmission service
under this Tariff if such service would be prohibited
by Section 212(h)(2) of the Federal Power Act; and (iii) any
retail customer, or any supplier of retail service, taking
unbundled transmission service pursuant to a state retail access
program, in accordance with the applicable state requirements,
or pursuant to a voluntary offer of unbundled transmission
service by the Participants.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 15
1.14 Energy Imbalance Service: This service is the form of Ancillary
Service described in Schedule 4.
1.15 Excepted Transaction: A transaction specified in Section 25 for
the applicable period specified in that Section.
1.16 Facilities Study: An engineering study conducted pursuant to
the Agreement or this Tariff by the System Operator and/or one
or more affected Participants to determine the required
modifications to the NEPOOL Transmission System, including the
cost and scheduled completion date for such modifications, that
will be required to provide a requested transmission service.
1.17 Firm Point-To-Point Transmission Service: Point-to-Point
Transmission Service which is reserved and/or scheduled between
specified Points of Receipt and Delivery in accordance with the
applicable procedure specified in Part II or Part V of this
Tariff.
1.18 Firm Transmission Service: Service for Native Load Customers,
firm Regional Network Service (including
NEPOOL Open Access Transmission Tariff
Original Sheet No. 16
Network Integration Transmission Service), service for Excepted
Transactions and Firm Point-to-Point Transmission Service
(including Through or Out Service).
1.19 Good Utility Practice: Any of the practices, methods and acts
engaged in or approved by a significant portion of the electric
utility industry during the relevant time period, or any of the
practices, methods and acts which, in the exercise of reasonable
judgment in light of the facts known at the time the decision
was made, could have been expected to accomplish the desired
result at a reasonable cost consistent with good business
practices, reliability, safety and expedition. Good Utility
Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but
rather includes all acceptable practices, methods, or acts
generally accepted in the region.
1.20 Interest: Interest calculated in the manner specified in Section
8.3
NEPOOL Open Access Transmission Tariff
Original Sheet No. 17
1.21 Interruption: A reduction in non-firm transmission service due
to economic reasons pursuant to Section 28.7.
1.22 ISO: The independent System Operator which is expected to
assume responsibility for the continued operation of the NEPOOL
Control Area from the NEPOOL control center and the
administration of this Tariff, subject to regulation by the
Commission.
1.23 Load Ratio Share: Ratio of a Transmission Customer's Network
Load to the Participants' total load computed in accordance with
Section 46.1 under Part VI of the Tariff and calculated on a
rolling twelve month average basis.
1.24 Load Shedding: The systematic reduction of system demand by
temporarily decreasing load in response to transmission system
or area capacity shortages, system instability, or voltage
control considerations under Part VI of the Tariff.
1.25 Local Network: The transmission facilities constituting a local
network identified on Attachment E, and any
NEPOOL Open Access Transmission Tariff
Original Sheet No. 18
other local network or change in the designation of a Local
Network as a Local Network which the Management Committee may
designate or approve from time to time. The Management
Committee may not unreasonably withhold approval of a request by
a Participant that it effect such a change or designation.
1.26 Local Network Service: Local Network Service is the service
provided, under a separate tariff or contract, by a Participant
that is a Transmission Provider to another Participant, or other
entity connected to the Transmission Provider's Local Network to
permit the other Participant or entity to efficiently and
economically utilize its resources to serve its Load.
1.27 Local Point-To-Point Service: Local Point-To-Point service is
service provided, under a separate tariff or contract, by a
Participant that is a Transmission Provider over Non-PTF or
distribution facilities to permit a Participant or other
entity with an Entitlement in a generating unit to deliver the
output of such unit
NEPOOL Open Access Transmission Tariff
Original Sheet No. 19
to an interconnection point on the NEPOOL Transmission System.
Local Point-To-Point Service may be included as part of Local
Network Service.
1.28 Long-Term Firm Point-To-Point Transmission Service: Firm Point-
To-Point Transmission Service under Part II or V of this Tariff
with a term of one year or more.
1.29 Native Load Customers: The wholesale and retail power customers
of a Participant or other entity which is a Transmission
Provider on whose behalf the Participant or other entity, by
statute, franchise, regulatory requirement, or contract, has
undertaken an obligation to, construct and operate its system to
meet the reliable electric needs of such customers.
1.30 NEPOOL: The New England Power Pool, the power pool created
under and governed by the Agreement, and the entities
collectively participating in the New England Power Pool.
1.31 NEPOOL Control Area: The Control Area (as defined in Section
1.8) for NEPOOL.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 20
1.32 NEPOOL Transmission System: The PTF transmission facilities
owned by the Participants and their Related Persons.
1.33 Network Customer: A Participant or Non-Participant receiving
transmission service pursuant to the terms of the Network
Integration Transmission Service under Part II and Part VI of
the Tariff.
1.34 Network Integration Transmission Service: The transmission
service provided under Part VI of the Tariff.
1.35 Network Load: The load that a Network Customer designates for
Network Integration Transmission Service under Parts II and VI
of the Tariff. The Network Customer's Network Load shall
include all load served by it within the NEPOOL Control Area and
any load outside the NEPOOL Control Area served by the output of
any Network Resources designated by the Network Customer.
1.36 Network Operating Agreement: An executed agreement that contains
the terms and conditions under which, in the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 21
form of Attachment H or any other form that is mutually agreed
to, the Network Customer shall operate its facilities and the
technical and operational matters associated with the
implementation of Network Integration Transmission Service
under Part VI of this Tariff.
1.37 Network Operating Committee: A group made up of representatives
from the Network Customer(s) and the System Operator established
to coordinate operating criteria and other technical
considerations required for implementation of Network
Integration Transmission Service under Part VI of this Tariff.
1.38 Network Resource: Any designated generating resource owned or
purchased by a Network Customer under the Network Integration
Transmission Service Tariff. Network Resources do not include
any resource, or any portion thereof, that is committed for sale
to third parties or otherwise cannot be called upon to meet the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 22
Network Customer's Network Load on a non-interruptible basis.
1.39 Network Upgrades: Modifications or additions to transmission-
related facilities that are integrated with and support the
overall NEPOOL Transmission System for the general benefit of
all users of such Transmission System.
1.40 Non-Firm Point-to-Point Transmission Service: Point-to-Point
Transmission Service under this Tariff that is subject to
Curtailment or Interruption under the circumstances specified in
Section 28.7 of this Tariff.
1.41 Non-Participant: Any entity that is not a Participant.
1.42 Non-PTF: The transmission facilities owned by the Participants
and their Related Persons that do not constitute PTF.
1.43 Open Access Same-Time Information System (OASIS): The NEPOOL
information system and standards of conduct responding to
requirements of 18 C.F.R. <section>37 of the Commission's
regulations.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 23
1.44 Operating Reserve - 10-Minute Non-Spinning Reserve Service:
This service is the form of Ancillary Service described in
Schedule 6.
1.45 Operating Reserve - 10-Minute Spinning Reserve Service: This
service is the form of Ancillary Service described in Schedule
5.
1.46 Operating Reserve - 30-Minute Reserve Service: This service is
the form of Ancillary Service described in Schedule 7.
1.47 Participant: Participant has the meaning specified in the
Agreement.
1.48 Participant RNS Rate: The rate applicable to Regional Network
Service to effect a delivery to Load in a particular Local
Network, as determined in accordance with Schedule 9 to this
Tariff.
1.49 Point(s) of Delivery: Point(s) where capacity and/or energy
transmitted by the Participants will be made available to the
Receiving Party under this Tariff. The
NEPOOL Open Access Transmission Tariff
Original Sheet No. 24
Point(s) of Delivery shall be specified in the Service
Agreement, if applicable.
1.50 Point(s) of Receipt: Point(s) of interconnection where capacity
and/or energy to be transmitted by the Participants will be made
available to NEPOOL by the Delivering Party under this Tariff.
The Point(s) of Receipt shall be specified in the Service
Agreement, if applicable.
1.51 Point-To-Point Transmission Service: The transmission of
capacity and/or energy on either a firm or non-firm basis from
the Point(s) of Receipt to the Point(s) of Delivery under this
Tariff.
1.52 Pool PTF Rate: The transmission rate determined in accordance
with Schedule 8 to this Tariff.
1.53 Pool RNS Rate: The transmission rate determined in accordance
with paragraph (2)of Schedule 9 to this Tariff.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 25
1.54 Power Purchaser: The entity that is purchasing the capacity
and/or energy to be transmitted under the Tariff.
1.55 PTF or Pool Transmission Facilities: The (i) transmission
facilities owned by the Participants and their Related Persons
which constitute PTF pursuant to the Agreement, and (ii) the
static var compensator installed at Chester, Maine at the
request of the Participants.
1.56 Pre-1997 PTF Rate: The transmission rate of a Participant
determined in accordance with Schedule 9 to this Tariff.
1.57 Reactive Supply and Voltage Control From Generation Sources
Service: This service is the form of Ancillary Service
described in Schedule 2.
1.58 Receiving Party: The entity receiving the capacity and/or
energy transmitted to Point(s) of Delivery under this Tariff.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 26
1.59 Regional Network Service: The transmission service described in
Section 14 of this Tariff.
1.60 Regulation and Frequency Response Service: This service is the
form of Ancillary Service described in Schedule 3.
1.61 Reserved Capacity: The maximum amount of capacity and energy
that is committed to the Transmission Customer for transmission
over the NEPOOL Transmission System between the Point(s) of
Receipt and the Point(s) of Delivery under Part V of this
Tariff. Reserved Capacity shall be expressed in terms of
whole kilowatts on a sixty minute interval (commencing on the
clock hour) basis.
1.62 Scheduling, System Control and Dispatch Service: This service
is the form of Ancillary Service described in Schedule 1.
1.63 Service Agreement: The initial agreement and any attachments,
amendments or supplements thereto entered into, upon completion
of any required System Impact
NEPOOL Open Access Transmission Tariff
Original Sheet No. 27
Study and Facilities Study, by the Transmission Customer and the
System Operator on behalf of the NEPOOL Participants, for
service under this Tariff.
1.64 Service Commencement Date: The date service is to begin
pursuant to the terms of an executed Service Agreement, or the
date service begins in accordance with Section 29.3 or Section
41.1 under this Tariff, or in the case of Regional Network
Service which is not required to be furnished under a Service
Agreement pursuant to Section 17 of this Tariff, the date
service actually commences.
1.65 Short-Term Firm Point-To-Point Transmission Service: Firm
Point-To-Point Transmission Service under Part V of this Tariff
with a term of less than one year.
1.66 System Impact Study: An assessment pursuant to Part II, V or VI
of this Tariff of (i) the adequacy of the NEPOOL Transmission
System to accommodate a request for a new interconnection or new
Regional Network Service, Through or Out Service, or Network
Integration Transmission Service and (ii) whether any
additional costs may be
NEPOOL Open Access Transmission Tariff
Original Sheet No. 28
required to be incurred in order to provide the transmission
service.
1.67 System Operator: The central dispatching agency provided for in
the Agreement which has responsibility for the operation of the
NEPOOL Control Area from the control center and the
administration of this Tariff. The System Operator shall be
the ISO after it has been activated and is prepared to assume
responsibility for the NEPOOL Control Area and control center.
1.68 Tariff: This NEPOOL Open Access Transmission Tariff and
accompanying schedules and attachments, as modified and amended
from time to time.
1.69 Third-Party Sale: Any sale for resale in interstate commerce by
a Participant which is a Transmission Provider to a Power
Purchaser, to be transmitted under this Tariff as Through or Out
Service.
1.70 Through or Out Service: Transmission service provided by NEPOOL
with respect to a transaction which requires the use of PTF and
which goes through the NEPOOL Control
NEPOOL Open Access Transmission Tariff
Original Sheet No. 29
Area, as, for example, from New Brunswick to New York, or from
one point on the NEPOOL Control Area boundary with New York to
another point on the Control Area boundary with New York, or
with respect to a transaction which goes out of the NEPOOL
Control Area from a point in the NEPOOL Control Area, as, for
example, from Boston to New York.
1.71 Tie Benefit: Tie Benefit has the meaning specified in Section
21.
1.72 Tie Benefit Service: Transmission service provided by NEPOOL
with respect to the receipt by a Participant of a Tie Benefit,
for Installed Capability Responsibility or other purposes,
provided by the existing transmission ties between the NEPOOL
Control Area, on the one hand, and New York or New Brunswick, on
the other hand. The amount in Kilowatts of Tie Benefit Service
received by a Participant at any time shall be the firm load
equivalent of the amount of the reduction in its
NEPOOL Open Access Transmission Tariff
Original Sheet No. 30
Installed Capability Responsibility obligation because of its
receipt of the Tie Benefit Service.
1.73 Transition Period: The five-year period commencing on the date
on which this Tariff becomes effective.
1.74 Transmission Customer: Any Eligible Customer that (i) is a
Participant which is not required to sign a Service Agreement
with respect to a service to be furnished to it in accordance
with Section 17, or (ii) executes, on its own behalf or through
its Designated Agent, a Service Agreement, or (iii) requests in
writing, on its own behalf or through its Designated Agent, that
NEPOOL file with the Commission, a proposed unexecuted Service
Agreement in order that the Eligible Customer may receive
transmission service under Parts V or VI of this Tariff or (iv)
is otherwise obligated to pay charges under the Tariff. This
term is used in Part I to include customers receiving
transmission service under this Tariff.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 31
1.75 Transmission Provider: The Participants collectively with
respect to this Tariff, or an individual Participant with
respect to service under its individual tariff or other
arrangement.
1.76 Year: A period of 365 or 366 days, whichever is appropriate,
commencing on, or on the anniversary of, the effective date of
this Tariff. Year One is the Year commencing on the effective
date, and Years Two and higher follow it in sequence.
2 Purpose of This Tariff
This Tariff, together with the transmission provisions in Part Four of
the Agreement, is intended to provide a regional arrangement which will
cover new uses of the NEPOOL Transmission System. The arrangement is
designed and shall be operated in such a manner as to encourage and
promote competition in the electric market to the benefit of
ultimate users of electric energy. New uses of transmission facilities
which require the use of a single Participant Local Network will
continue to be provided in part under that
NEPOOL Open Access Transmission Tariff
Original Sheet No. 32
Participant's filed tariff as Local Network Service. Any new regional
use of the NEPOOL Transmission System must be obtained from NEPOOL
pursuant to this Tariff and not from individual Participants. All new
transmission service under this Tariff will be provided as Regional
Network Service pursuant to Part II of this Tariff at rates which
will be paid by Participants and Non-Participants on the basis of their
loads, subject to exceptions only for (i) Tie Benefit Service and (ii)
Through or Out Service which will be provided pursuant to Part III of
this Tariff at the rates specified therein, and subject also
to a requirement that Transition Payments be made in accordance with
Part IV of this Tariff. Ancillary Services will be supplied in
accordance with Section 4 of this Tariff.
Tie Benefit Service and a five-year transitional arrangement, which is
described in Part IV of this Tariff, and continuing service for
Excepted Transactions, have been negotiated to phase in the financial
impacts of the change from the historic regime in which uses of
the NEPOOL Transmission
NEPOOL Open Access Transmission Tariff
Original Sheet No. 33
System had to be obtained and paid for under the individual tariffs of
the Participants to a regime in which the service will be obtained from
the Participants through NEPOOL at a rate which will not vary with
distance and which covers all possible regional uses of the NEPOOL
Transmission System.
This Tariff is intended to provide for comparable, non-discriminatory
treatment of all similarly situated Transmission Providers and all
Participants and Non-Participants that are transmission users, and it
shall be construed in the manner which best achieves this objective.
This Tariff, and the provisions of Part Four of the Agreement, provide
for a two-tier transmission arrangement integrating regional service
which is provided under this Tariff, and Local Network Service and, for
limited purposes, Local Point-to-Point Service which are provided under
the Participants' individual system tariffs.
3 Initial Allocation and Renewal Procedures
3.1 Initial Allocation of Available Transmission Capability: For
purposes of determining whether existing capability
NEPOOL Open Access Transmission Tariff
Original Sheet No. 34
on the NEPOOL Transmission System is adequate to accommodate a
request for new Through or Out Service under Part V of this
Tariff, all Completed Applications for new service received
during the initial sixty-day period of the Transition Period
will be deemed to have been filed simultaneously. A lottery
system conducted by an independent accounting firm shall be used
to assign priorities for Completed Applications filed
simultaneously. All Completed Applications for Through or Out
Service received after the initial sixty-day period shall be
assigned a priority pursuant to Section 27.2.
3.2 Reservation Priority For Existing Firm Service Customers:
Existing firm service customers receiving service with respect
to Excepted Transactions and any other existing firm service
customers of the Participants (wholesale requirements
customers and transmission-only customers) with a contract term
of one year or more have the right to continue to take
NEPOOL Open Access Transmission Tariff
Original Sheet No. 35
transmission service at the same or a reduced level under this
Tariff at the time when the existing contract terminates during
or after the Transition Period. This transmission reservation
priority is independent of whether the existing customer
continues to purchase capacity and energy from its existing
supplier or elects to purchase capacity and energy from another
supplier. If, at the end of the contract term, the NEPOOL
Transmission System cannot accommodate all of the requests
for transmission service, the existing firm service customer
must agree to accept a contract term at least equal to a
competing request by any new Eligible Customer and to pay the
current just and reasonable rate, filed with the Commission, for
such service. This transmission reservation priority for
existing firm service customers is an ongoing right that may be
exercised as to any firm contract with a term of one year or
longer by filing an Application in accordance with this Tariff
at least sixty days in advance of the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 36
first day of the calendar month in which the existing contract
term is to terminate.
4 Ancillary Services
Ancillary Services are needed with transmission service to maintain
reliability within the NEPOOL Control Area. The Participants are
required to provide through NEPOOL, and the Transmission Customer is
required to purchase from NEPOOL, Scheduling, System Control and
Dispatch Service, and Reactive Supply and Voltage Control from
Generation Sources Service.
The Participants offer to provide or arrange for, through NEPOOL, the
following Ancillary Services, but only to a Transmission Customer
serving load within the NEPOOL Control Area (i) Regulation and
Frequency Response (Automatic Generator Control), (ii) Energy
Imbalance, (iii) Operating Reserve - 10-Minute Spinning, (iv)
Operating Reserve - 10-Minute Non-Spinning and (v) Operating Reserve -
30-Minute. A Participant or other Transmission Customer serving load
within the NEPOOL Control Area is required to provide these Ancillary
Services, whether from the System Operator, from a
NEPOOL Open Access Transmission Tariff
Original Sheet No. 37
third party, or by self-supply. A Transmission Customer may not
decline NEPOOL's offer of these Ancillary Services unless the
Transmission Customer demonstrates to the System Operator that the
Transmission Customer has acquired Ancillary Services of equal quality
from another source. The Transmission Customer that is not a
Participant must list in its Application which Ancillary Services it
will purchase through NEPOOL.
In the event of an unauthorized use of any Ancillary Service by the
Transmission Customer, the Transmission Customer will be required to
pay 150% of the charge which would otherwise be applicable.
The specific Ancillary Services, prices and/or compensation methods are
described on the Schedules that are attached to and made a part of this
Tariff. If a rate discount is offered or attributed to a Participant
or to a Related Person of a Participant, the same discounted Ancillary
Service rate will be offered to all Eligible Customers. Information
regarding any discounted Ancillary Service rates will be
NEPOOL Open Access Transmission Tariff
Original Sheet No. 38
posted on OASIS pursuant to 18 C.F.R. <section>37 of the Commission's
regulations. In addition, discounts to non-affiliates will be offered
in a not unduly discriminatory manner. Sections 4.1 through 4.7 below
list the seven Ancillary Services.
4.1 Scheduling, System Control and Dispatch Service: The rates
and/or methodology are described in Schedule 1.
4.2 Reactive Supply and Voltage Control from Generation Sources
Service: The rates and/or methodology are described in Schedule
2.
4.3 Regulation and Frequency Response Service: Where applicable,
the rates and/or methodology are described in Schedule 3.
4.4 Energy Imbalance Service: Where applicable, the rates and/or
methodology are described in Schedule 4.
4.5 Operating Reserve - 10 Minute Spinning Reserve Service: Where
applicable, the rates and/or methodology for this service are
described in Schedule 5.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 39
4.6 Operating Reserve - 10 Minute Non-Spinning Reserve Service:
Where applicable, the rates and/or methodology for this service
are described in Schedule 6.
4.7 Operating Reserve - 30 Minute Reserve Service: Where
applicable, the rates and/or methodology for this service are
described in Schedule 7.
5 Open Access Same-Time Information System (OASIS)
Terms and conditions regarding the NEPOOL Open Access Same-Time
Information System and standards of conduct are set forth in 18 C.F.R.
<section>37 of the Commission's regulations (Open Access Same-Time
Information System and Standards of Conduct for Public Utilities). In
the event available transmission capability, as posted on OASIS, is
insufficient to accommodate a request for firm transmission service,
additional studies may be required as provided by this Tariff pursuant
to Sections 33 and 44.
NEPOOL Open Access Transmission Tariff
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6 Local Furnishing and Other Tax-Exempt Bonds
6.1 Participants That Own Facilities Financed by Local Furnishing or
Other Tax-Exempt Bonds: This provision is applicable only to
Participants that have financed facilities for the local
furnishing of electric energy with tax-exempt bonds, as
described in Section 142(f) of the Internal Revenue Code ("local
furnishing bonds") or other tax-exempt bonds, as described in
Section 103(b) of the Internal Revenue Code ("other tax-exempt
bonds"). Notwithstanding any other provision of this Tariff, a
Participant shall not be required to provide service to any
Eligible Customer pursuant to this Tariff if the provision of
such transmission service would jeopardize the tax-exempt status
of any local furnishing bond(s) or other tax-exempt bonds used
to finance the Participant's facilities that would be used in
providing such Transmission Service.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 41
6.2 Alternative Procedures for Requesting Transmission Service -
Local Furnishing Bonds:
(i) If a Participant determines that the provision of
transmission service to be provided under this Tariff
would jeopardize the tax-exempt status of any
local furnishing bond(s) used to finance the
Participant's facilities that would be used in providing
such transmission service, the Management Committee
shall be advised within thirty days of receipt of a
Completed Application by an Eligible Customer requesting
such service, or the date on which this Tariff becomes
effective, whichever is applicable.
(ii) If an Eligible Customer thereafter renews its request
for the same transmission service referred to in (i) by
tendering an application under Section 211 of the
Federal Power Act, or the Management Committee
tenders such an application requesting that service be
provided under this Tariff, the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 42
Participant, within ten days of receiving a copy of the Section
211 application, will waive its rights to receive a request for
service under Section 213(a) of the Federal Power Act and to the
issuance of a proposed order under Section 212(c) of the Federal
Power Act and will provide the requested transmission service in
accordance with the terms and conditions of this Tariff.
6.3 Alternative Procedures for Requesting Transmission Service -
Other Tax-Exempt Bonds:
If a Participant determines that the provision of transmission
service to be provided under the Tariff would jeopardize the
tax-exempt status of any other tax-exempt bonds used to finance
the Participant's facilities that would be used in furnishing
such transmission service, it shall notify the Management
Committee within thirty days of the date on which this Tariff
becomes effective, and shall elect in its notice either to
comply with the procedure specified in Section
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Original Sheet No. 43
6.2(ii) or to make its facilities unavailable under the Tariff
and thereby waive its right to share in the distribution of
revenues received under the Tariff derived from such facilities.
Any such election may be changed at any time.
7 Reciprocity
A Transmission Customer receiving transmission service under this
Tariff, whether a Participant or a Non-Participant, agrees to provide
comparable transmission service to the Participants on similar terms
and conditions over facilities used for the transmission of electric
energy in Canada or used for such transmission in the United States in
interstate commerce and that are owned, controlled or operated by, or
on behalf of the Transmission Customer or its Related Person.
Transmission of power on the Transmission Customer's system to the
border of the NEPOOL Control Area and transfer of ownership at that
point shall not satisfy, or relieve the Transmission Customer of, the
obligation to provide reciprocal service. This reciprocity requirement
also
NEPOOL Open Access Transmission Tariff
Original Sheet No. 44
applies to any Transmission Customer that owns, controls or operates
transmission facilities that uses an intermediary, such as a power
marketer, to request transmission service under this Tariff. If the
Transmission Customer does not own, control or operate transmission
facilities, the Transmission Customer must include in its Application a
sworn statement of one of its duly authorized officers or other
representatives that the purpose of its Application is not to assist an
Eligible Customer to avoid the requirements of this provision.
8 Billing and Payment; Accounting
8.1 Participant Billing Procedure: Billings to Participants for
services received under this Tariff shall be made in accordance
with the billing procedures established pursuant to the
Agreement.
8.2 Non-Participant Billing Procedure: Within a reasonable time
after the first day of each month, the System Operator will
submit on behalf of the Participants an invoice to each Non-
Participant Transmission Customer
NEPOOL Open Access Transmission Tariff
Original Sheet No. 45
for the charges for all services furnished under this Tariff
during the preceding month. The invoice shall be paid by the
Non-Participant Transmission Customer to the System Operator for
NEPOOL within ten days of receipt. All payments shall be made,
in accordance with the procedure specified by the System
Operator, in immediately available funds payable to the System
Operator or by wire transfer to a bank account designated by the
System Operator.
8.3 Interest on Unpaid Balances: Interest on any unpaid amounts
(including amounts placed in escrow) will be calculated in
accordance with the methodology specified for interest on
refunds in 18 C.F.R. <section>35.19a(a)(2)(iii) of the
Commission's regulations. Interest on delinquent amounts will
be calculated from the due date of the bill to the date of
payment. When payments are made by mail, bills will be
considered as having been paid on the date of receipt of
payment by the System Operator or by the bank designated by the
System Operator.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 46
8.4 Customer Default: In the event a Transmission Customer which is
a Participant fails to perform its obligations under the Tariff,
Section 21.2 of the Agreement shall be applicable to the
failure. In the event a Non-Participant Transmission
Customer fails, for any reason other than a billing dispute as
described below, to make payment to the System Operator on or
before the due date as described above, and such failure of
payment is not corrected within thirty calendar days after the
System Operator notifies the Transmission Customer to cure such
failure, or if the Transmission Customer violates any provision
of its Service Agreement, a default by the Transmission Customer
will be deemed to exist. Upon the occurrence of a default,
NEPOOL may initiate a proceeding with the Commission to
terminate service but shall not terminate service until the
Commission approves such termination. In the event of a billing
dispute between NEPOOL and the Transmission Customer, service
will continue to be provided under the Service
NEPOOL Open Access Transmission Tariff
Original Sheet No. 47
Agreement as long as the Transmission Customer (i) continues to
make all payments not in dispute, and (ii) pays into an
independent escrow account the portion of the invoice in
dispute, pending resolution of such dispute. If the
Transmission Customer fails to meet these two requirements for
continuation of service, then the System Operation may provide
notice to the Transmission Customer of NEPOOL's intention to
suspend service in sixty days, in accordance with applicable
Commission rules and regulations, and may proceed with such
suspension.
8.5 Study Costs and Revenues: A Participant which is a Transmission
Provider shall (i) include in a separate operating revenue
account or subaccount the revenues, if any, it receives from
transmission service when making Third-Party Sales under
this Tariff, and (ii) include in a separate transmission
operating expense account or subaccount, costs properly
chargeable to expense that are incurred to perform any System
Impact Studies or
NEPOOL Open Access Transmission Tariff
Original Sheet No. 48
Facilities Studies which the Transmission Provider conducts to
determine if it must construct new transmission facilities or
upgrades necessary for its own uses, including Third-Party
Sales, if any, under this Tariff; and include in a separate
operating revenue account or subaccount the revenues received
for System Impact Studies or Facilities Studies performed when
such amounts are separately stated and identified in a billing
under the Tariff.
9 Regulatory Filings
Nothing contained in this Tariff or any Service Agreement shall be
construed as affecting in any way the right of the Participants to file
with the Commission under Section 205 of the Federal Power Act and
pursuant to the Commission's rules and regulations promulgated
thereunder for a change in any rates, terms and conditions, charges,
classification of service, Service Agreement, rule or regulation.
Nothing contained in this Tariff or any Service Agreement shall be
construed as affecting in any way the ability of any
NEPOOL Open Access Transmission Tariff
Original Sheet No. 49
Transmission Customer receiving service under this Tariff or for an
Excepted Transaction to exercise its rights under the Federal Power Act
and pursuant to the Commission's rules and regulations promulgated
thereunder.
10 Force Majeure and Indemnification
10.1 Force Majeure: An event of Force Majeure means any act of God,
labor disturbance, act of the public enemy, war, insurrection,
riot, fire, storm or flood, explosion, breakage or accident to
machinery or equipment not due to lack of proper care or
maintenance, any Curtailment, order, regulation or restriction
imposed by a court or governmental military or lawfully
established civilian authorities, or any other cause beyond a
party's control. Neither the Participants, NEPOOL, the System
Operator nor the Transmission Customer will be considered in
default as to any obligation under this Tariff if prevented from
fulfilling the obligation due to an event of Force Majeure;
provided that no event of Force Majeure shall excuse any payment
obligation
NEPOOL Open Access Transmission Tariff
Original Sheet No. 50
hereunder or under a Service Agreement. However, an entity
whose performance under this Tariff is hindered by an event of
Force Majeure shall make all reasonable efforts to perform its
obligations under this Tariff, and shall promptly notify the
System Operator or the Transmission Customer, whichever is
appropriate, of the commencement and end of each event of Force
Majeure.
10.2 Indemnification: The Transmission Customer shall at all times
indemnify, defend, and save harmless the System Operator, NEPOOL
and each Participant from any and all damages, losses, claims,
including claims and actions relating to injury to or death of
any person or damage to property, demands, suits, recoveries,
costs and expenses, court costs, attorney fees, and all other
obligations by or to third parties, arising out of or resulting
from the performance by the System Operator, NEPOOL or any
Participant of their obligations under this Tariff on behalf of
the Transmission Customer, except in cases of negligence or
intentional wrongdoing
NEPOOL Open Access Transmission Tariff
Original Sheet No. 51
by the System Operator, NEPOOL or a Participant, as the case may
be.
11 Creditworthiness
For the purpose of determining the ability of a Transmission Customer
which is a Non-Participant to meet its obligations related to service
hereunder, NEPOOL may require reasonable credit review procedures.
This review shall be made in accordance with standard commercial
practices. In addition, NEPOOL may require the Transmission
Customer to provide and maintain in effect during the term of the
Service Agreement an unconditional and irrevocable letter of credit as
security to meet its responsibilities and obligations under this
Tariff, or an alternative form of security proposed by the Transmission
Customer and acceptable to NEPOOL and consistent with commercial
practices established by the Uniform Commercial Code that protects the
Participants against the risk of non-payment.
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Original Sheet No. 52
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures: Any dispute between a
Transmission Customer which is a Participant and NEPOOL
involving transmission service under the Tariff may be submitted
to mediation and/or arbitration and resolved in accordance with
the alternate dispute resolution procedures set forth in Section
21.1 of the Agreement. Any dispute between a Non-Participant
Transmission Customer and NEPOOL involving transmission service
under this Tariff (excluding applications for rate changes or
other changes to this Tariff, or to any Service Agreement
entered into under this Tariff, which shall be presented
directly to the Commission for resolution) shall be referred to
a designated senior representative of the Transmission Customer
and a representative of the Management Committee for resolution
on an informal basis as promptly as practicable. In the event
the designated representatives are unable to resolve the
dispute within
NEPOOL Open Access Transmission Tariff
Original Sheet No. 53
thirty days or such other period as the parties may fix by
mutual agreement, such dispute may be submitted to mediation
and/or arbitration and resolved in accordance with the alternate
dispute resolution procedures set forth in Section 21.1 of the
Agreement.
12.2 Rights Under The Federal Power Act: Nothing in this section
shall restrict the rights of any party to file a complaint with
the Commission, or seek any other available remedy, under
relevant provisions of the Federal Power Act.
13 Stranded Costs
13.1 General: This Tariff shall not be used to evade or enhance in
whole or in part the stranded cost policies or charges
established by the regulatory commission with jurisdiction. A
retail end-use or wholesale customer that uses this Tariff to
purchase electricity from a new supplier shall pay a stranded
cost charge for access to service under this Tariff as
specifically authorized by the regulatory commission with
jurisdiction and subject
NEPOOL Open Access Transmission Tariff
Original Sheet No. 54
to any contract terms concerning the recovery of stranded costs.
Upon determination by a regulatory commission that an Eligible
Customer has a stranded cost obligation, and the nature and
extent of such obligation, the charge may be collected under
this Tariff, or a Participant's individual tariff or otherwise
by NEPOOL or the Participants which own any facilities that are
used to provide transmission service to the customer, provided,
however, that the amount of any such stranded cost obligation,
as determined by the appropriate regulatory commission, cannot
be collected twice. The entity that collects the stranded cost
charge shall pay the proceeds to the customer's former supplier
or the former supplier's Related Person, or successor, as
directed by the former supplier. The amount of the stranded
cost charge shall equal the amount of stranded cost that
the customer would have paid under the policies or charges
established by the regulatory commission with jurisdiction had
the customer
NEPOOL Open Access Transmission Tariff
Original Sheet No. 55
become an unbundled transmission services customer of its former
supplier without using service under this Tariff.
13.2 Commission Requirements: A Participant which seeks to recover
stranded costs from a Transmission Customer pursuant to this
Tariff may do so in accordance with the terms, conditions and
procedures in the Commission's Order No. 888. However, the
Participant must separately file any specific proposed stranded
cost charge under Section 205 of the Federal Power Act.
13.3 Wholesale Contracts: Nothing in this Section 13 is intended to
affect or alter the rights or obligations of parties under
wholesale requirements contracts.
13.4 Right to Seek or Contest Recovery Unimpaired: No provision in
this Tariff shall impair a Participant's right to seek stranded
cost relief from the appropriate regulatory body or court or the
right of any Participant or other entity to contest such relief.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 56
II. REGIONAL NETWORK SERVICE
Regional Network Service will be provided by the Participants through
NEPOOL during and after the Transition Period to Participants and Non-
Participants pursuant to the applicable terms and conditions of this
Tariff. Local Network Service and Local Point-To-Point Service, to the
extent required, will be provided during and after the Transition
Period pursuant to the applicable terms and conditions of tariffs filed
by an individual Participant that is a Transmission Provider and/or
pursuant to an agreement between a Participant that is a Transmission
Provider and a Transmission Customer. This Tariff does not prescribe
the methodology to be used by the individual Participant in developing
its Local Network Service rate or its Local Point-to-Point Service
rate, but the Agreement prescribes certain requirements with respect
thereto.
14 Nature of Regional Network Service
Except as provided below, Regional Network Service is any new use of
the NEPOOL Transmission System which requires the use
NEPOOL Open Access Transmission Tariff
Original Sheet No. 57
of PTF, other than Through or Out Service, and includes, but is not
limited to, Point-To-Point Transmission Service for the transmission of
Unit Contract Entitlements or System Contracts, Network Integration
Transmission Service, the transmission of Ancillary Services whether
provided under a bilateral contract or through NEPOOL Interchange
Transactions, and the transmission of energy and capacity-related
services provided through NEPOOL Interchange Transactions; provided,
however, that for the ten-year period commencing on the date on which
this Tariff becomes effective, Tie Benefit Service shall be provided
pursuant to Section 21 and shall not constitute Regional Network
Service.
15 Availability of Regional Network Service
15.1 Provision of Regional Network Service: Regional Network Service
shall be provided by the Participants through NEPOOL, and shall
be available to each Participant and to each Non-Participant
that qualifies as an Eligible Customer.
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Original Sheet No. 58
15.2 Eligibility to Receive Regional Network Service: Notwithstanding
the purchase of any other service provided under the Tariff,
Regional Network Service shall be taken and paid for by (i) each
Participant which has a load within the NEPOOL Control Area, and
(ii) each Non-Participant which is an Eligible Customer and
has a load within the NEPOOL Control Area unless such Non-
Participant operates its own Control Area. Participants and
Non-Participants which are required to take and pay for Regional
Network Service must also take Local Network Service except as
otherwise provided in Section 25. Participants or Non-
Participant Eligible Customers which require the use of the
NEPOOL Transmission System or a Local Network for Regional
Network Service but which do not have a load shall also be
entitled to receive Regional Network Service for deliveries
within the NEPOOL Control Area and Local Network Service.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 59
When a constrained interface within the NEPOOL Control Area
occurs, then existing Firm Transmission Services will continue
to have priority over the interface. Where Curtailments or
Interruptions are required, or resources must be redispatched
this shall be effected in accordance with the applicable
procedures and with the priorities and consequences specified in
Parts V or VI of this Tariff, whichever is applicable.
16 Payment for Regional Network Service
Each Participant or Non-Participant which has a load in the NEPOOL
Control Area and is required to take and pay for Regional Network
Service shall pay to NEPOOL for each month an amount equal to its
Monthly Network Load (as defined in Section 46.1 of this Tariff) for
the month times the applicable Participant RNS Rate. The applicable
Participant Rate shall be the rate, determined in accordance with
Schedule 9, which is applicable to a delivery to load in the particular
Local Network in which the load served by the Participants or Non-
Participants is located. In the event
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Original Sheet No. 60
the Participant or Non-Participant serves load located on more than one
Local Network, the amount to be paid by it shall be separately computed
for the load located on each Local Network. A Participant or Non-
Participant using Regional Network Service which does not have a load
in the NEPOOL Control Area shall not be obligated to make such
payments.
17 Procedure for Obtaining Regional Network Service
When Regional Network Service is used for service by a Participant or
Non-Participant under a bilateral contract, across a constrained PTF
interface within the NEPOOL Control Area, the service must be reserved
with the System Operator and posted on the OASIS and the amount to be
transferred shall be identified. The System Operator must be notified
of all other service required for transfers by a Participant or Non-
Participant under bilateral contracts. No other reservation of
transmission capacity for Regional Network Service is required by a
Participant or Non-Participant and no Service Agreement, in addition to
the Agreement, is
NEPOOL Open Access Transmission Tariff
Original Sheet No. 61
required to be entered into by a Participant in order to receive
Regional Network Service, unless Direct Assignment Facilities or other
facility additions or upgrades are required to provide a particular
service requested by the Participant. Subject to the foregoing
exceptions and to Section 26 of this Tariff, a Participant or Non-
Participant which receives Regional Network Service shall be, subject
to the applicable provisions of Parts V and VI of this Tariff.
A Participant or Non-Participant which requests new Regional Network
Service shall be obligated to enter into a System Impact Study
Agreement in the form of Attachment I, or in any other form that is
mutually agreed to, and to pay the costs of the study if its
request is determined to require a System Impact Study, and shall be
obligated to enter into a Facilities Study Agreement in the form of
Attachment J, or in any other form that is mutually agreed to, and to
pay the costs of the study if additions or upgrades to PTF will be
required in order to provide the requested service.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 62
III. THROUGH OR OUT SERVICE; TIE BENEFIT SERVICE
Through or Out Service and Tie Benefit Service will be provided during
and after the Transition Period pursuant to the applicable terms and
conditions of this Tariff.
18 Through or Out Service
18.1 Provision of Through or Out Service: Through or Out Service
shall be provided by the Participants through NEPOOL, and shall
be available to any Participant and to any Non-Participant which
is an Eligible Customer.
18.2 Use of Through or Out Service: A Participant or Non-Participant
shall take Through or Out Service as Firm or Non-Firm Point-to-
Point Transmission Service for the transmission of any Unit
Contract Entitlement or System Contract transaction with respect
to a transaction which requires the use of PTF if either (i)
the transaction goes through the NEPOOL Control Area and the
Point(s) of Receipt for NEPOOL are at one point on the NEPOOL
Control Area boundary and the Point(s) of Delivery for NEPOOL
are at another point on the NEPOOL Control Area
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Original Sheet No. 63
boundary, as, for example, from New Brunswick to New York or
from one point on the NEPOOL Control Area boundary with New York
to another point on the Control Area boundary with New York, or
(ii) the transaction goes out of the NEPOOL Control Area and the
Point(s) of Receipt are within the NEPOOL Control Area and the
Point(s) of Delivery for NEPOOL are at a NEPOOL Control Area
boundary, as, for example, from Boston to New York.
19 Payment for Through or Out Service
Each Participant or Non-Participant which takes firm or non-firm
Through or Out Service shall pay to NEPOOL a charge per Kilowatt of
Reserved Capacity based on an annual rate (the "T or O Rate") which
shall be the higher of (i) the Pool PTF Rate, or (ii) a rate derived
from the annual incremental cost of any new facilities required to
provide the service. The rate for firm Through or Out Service shall be
as follows:
Per year- the T or O Rate
Per month- the T or O Rate divided by 12
Per week- the T or O Rate divided by 52
NEPOOL Open Access Transmission Tariff
Original Sheet No. 64
Per day - the T or O Rate "per week" divided by 5; provided
that the rate for 5 to 7 consecutive days may not
exceed the "per week" rate.
The rate for non-firm Through or Out Service shall be as follows:
Per year- the T or O Rate
Per month- the T or O Rate divided by 12
Per week- the T or O Rate divided by 52
Per day - the T or O Rate "per week" divided by 7;
Per hour- the non-firm T or O Rate "per day" divided by 24.
The Pool PTF Rate shall be the Rate determined annually in accordance
with paragraph 2 of Schedule 8.
20 Reservation of Capacity for Through or Out Service
Compliance with the applicable requirements of Part V of this Tariff is
required for the initiation of Through or Out Service.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 65
21 Tie Benefit Service
Each Participant which receives an identifiable and traceable benefit
(a "Tie Benefit"), in the determination of its Installed Capability
Responsibility or otherwise, from the existing transmission ties
between the NEPOOL Control Area, on the one hand, and New York
or New Brunswick on the other hand, shall be deemed to be a recipient
of Tie Benefit Service. In the event any of these existing
transmission ties is retired or ceases to be a tie to another Control
Area or the Tie Benefit received from it is reduced, the amount of
Tie Benefit Service which Participants are deemed to receive shall be
modified to reflect the change.
22 Payment for Tie Benefit Service
It has been agreed that, as part of the overall transition arrangements
referred to in Part IV of this Tariff, each Participant which is deemed
to be a recipient of Tie Benefit Service shall pay to NEPOOL each month
for such service received by it during the ten-year period commencing
on the effective date of this Tariff, an amount computed at the
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Original Sheet No. 66
applicable rate specified in Schedule 10 times the number of
Kilowatts of Tie Benefit Service it receives.
IV. SERVICE DURING THE TRANSITION PERIOD; EXCEPTED TRANSACTIONS
The five-year Transition Period, and additional arrangements to be in
effect during the succeeding five-year period, will permit the phase in
on a negotiated basis of the Tariff rates with financial effects which
are acceptable to Participants.
23 Transition Arrangements
The transition arrangements include (i) the treatment provided for
certain Excepted Transactions in Section 25, (ii) the rules provided in
Sections 16.3 and 16.6 of the Agreement for the distribution and
application of revenues received by NEPOOL on behalf of the Participants
from the payment of the Tariff rates, (iii) the payments for Tie
Benefits and (iv) the payment of Transition Payments.
24 Transition Payments
A schedule of Transition Payments to be made by certain Participants or
Non-Participants, and distributed to other Participants or Non-
Participants, in each year of the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 67
(As corrected)
Transition Period is set out in Schedule 11. The amounts to be paid and
received in each year have been determined by comparing certain
transmission costs and revenues for each year of the Transition Period
for each Participant and certain Non-Participants with the similar costs
and revenues for a base period; provided that only one-half of the
payments for Tie Benefit Service expected to be received by the owners of
the ties to New York and New Brunswick have been included in calculating
the Participant tie owner's revenues for the Transition Period. One-
twelfth of the annual Transition Payments for a Participant or Non-
Participant required to make Transition Payments are to be made
monthly and distributed monthly to those Participants or Non-Participants
eligible to receive payments.
25 Excepted Transactions
Notwithstanding any other section of the Tariff, the power transfers and
other uses of the NEPOOL Transmission System effected under the
transmission agreements in effect on November 1, 1996 specified below
("Excepted Transactions")
NEPOOL Open Access Transmission Tariff
Original Sheet No. 68
will continue to be effected under such agreements for the respective
periods specified below rather than under this Tariff, but not
thereafter, and such transfers and other uses will continue to be
effected after such period, if still occurring, under this Tariff.
Participants receiving service under the agreements listed in Exhibit G-1
shall not be required to take Local Network Service for such transfers
and other uses. The Excepted Transactions and the period for which each
of the existing transmission agreements will be continued in effect, and
then terminated are as follows:
(1) for the Transition Period, the following transfers
pursuant to Section 17 of the Agreement:
(a) the transfer to a Participant's system within the
Control Area of its ownership interest in a Pool-
Planned Unit which is off its system;
(b) the transfer to a Participant's system within the
Control Area of its Unit Contract Entitlement,
under a contract entered into by
NEPOOL Open Access Transmission Tariff
Original Sheet No. 69
it on or before November 1, 1996, in a Pool-Planned
Unit which is off its system; and
(c) the transfer to a Participant's system within the
Control Area of its Entitlement in a purchase
(including a purchase under the HQ Phase II Firm
Energy Contract) from Hydro-Quebec under a
contract entered into by it on or before November
1, 1996, where the line over which the transfer is
made into New England is the HQ Interconnection;
(2) for the Transition Period, the transfer to a Participant's
system within the Control Area of its Unit Contract
Entitlement in the Maine Yankee Atomic Power Company unit,
the Vermont Yankee Nuclear Power Corporation unit or the
Pilgrim 1 unit; provided the transfer is pursuant to a
transmission agreement in effect on November 1, 1996 and
is to the entity which was receiving the service on
November 1, 1996; and
NEPOOL Open Access Transmission Tariff
Original Sheet No. 70
(3) for the period from the effective date of the Tariff until
. . . .: {1}
(a) existing transfers and other uses within the NEPOOL
Control Area, as of November 1, 1996, of the NEPOOL
Transmission System under the support or exchange
agreements specified in Attachment G;
(b) existing transfers and other uses within the NEPOOL
Control Area, as of November 1, 1996, of the NEPOOL
Transmission System under the comprehensive network
service agreements specified in Attachment G; and
(c) existing transfers and other uses within the NEPOOL
Control Area, as of November 1, 1996, of the NEPOOL
Transmission System under the
**FOOTNOTES**
{1} The blank space shall be filled in in accordance with the 33rd
Amendment. Pending the filling in of the blank the service
shall continue until the termination of the transmission agreement
or the end of the Transition Period, whichever occurs first.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 71
other transmission agreements or tariff service
agreements specified in Attachment G.
The Management Committee is authorized to add additional
agreements to Attachment G if they have been inadvertently
omitted. The transfers or other uses under any of the
transmission agreements covering the transfers referred to
in paragraphs (1), (2) and (3) above shall be in accordance with
the terms of the transmission agreement as in effect on November
1, 1996, or a modification of the terms which is expressly
provided for in the agreement as in effect on November1, 1996 and
is accomplished without amendment of the agreement or by an
amendment entered into after November 1, 1996 that does not extend
the term of the agreement or increase the amount of the service.
Notwithstanding the foregoing, support agreements shall continue
in effect to provide for continued support payments and may be
extended so long as the agreement does not give priority of
service. Further,
NEPOOL Open Access Transmission Tariff
Original Sheet No. 72
notwithstanding the foregoing restriction on the amendment after
November 1, 1996 of transmission agreements with respect to
Excepted Transactions, the transmission arrangements for the
Masspower and Altresco facilities may continue as Excepted
Transactions in accordance with transmission agreement amendments
or memoranda of understanding entered into as of December, 1996
which do not extend the term of the agreements.
For the purpose of determining priorities under this Tariff,
Excepted Transactions shall have the same priority as Firm Point-
to-Point Transmission Service transactions for resources in
existence on the effective date of this Tariff which are effected
as Regional Network Service.
When transmission agreements cease to be Excepted Transactions
before the end of their term, the transactions shall be effected
under this Tariff and under any applicable Local Network Service
tariff, to the extent appropriate, but the transactions shall
NEPOOL Open Access Transmission Tariff
Original Sheet No. 73
continue to have a priority not less than the priority that they
would have had if Regional Network Service had been used for the
transactions from the effective date of this Tariff. New
transactions entered into after November 1, 1996 under umbrella
tariff agreements then in effect will not be Excepted
Transactions.
V. THROUGH OR OUT SERVICE AS POINT-TO-POINT TRANSMISSION SERVICE
Preamble
Firm or Non-Firm Point-To-Point Transmission Service shall be reserved by
all Transmission Customers, whether Participants or Non-Participants, for all
new point-to-point transfers to be effected as Through or Out Service, pursuant
to the applicable terms and conditions of this Part V of the Tariff. Point-To-
Point Transmission Service is the service required for the receipt of capacity
and energy at designated Point(s) of Receipt and the transmission of such
capacity and energy to designated Point(s) of Delivery.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 74
26 Nature of Review
If the Eligible Customer requesting Point-To-Point Transmission Service
as Through or Out Service for a Unit Contract or System Contract
transaction, or requesting Network Integration Transmission Service
pursuant to Part VI of this Tariff, is a Participant, it shall initially
advise the System Operator of the proposed transaction in such detail as
the System Operator may reasonably require. If the System Operator
determines, on the basis of an initial review of the reliability
requirements to meet existing and pending obligations of the Participants
and the obligations of the particular Participants whose PTF facilities
will be impacted by the proposed transaction, that no System Impact Study
is required, it shall tender a Service Agreement to the Eligible
Customer, if required. Otherwise, the applicable procedures specified in
this Part V or Part VI shall be followed. If the Eligible Customer
requesting service is not a Participant, the applicable application
procedures specified in this Part V or Part VI, whichever is applicable,
shall be
NEPOOL Open Access Transmission Tariff
Original Sheet No. 75
followed, but the System Operator shall make its initial review of
available transmission capacity on the same basis as it would with a
Participant.
27 Nature of Firm Point-To-Point Transmission Service
27.1 Term: The minimum term of Firm Point-To-Point Transmission
Service as Through or Out Service shall be one day and the maximum
term shall be that specified in the Service Agreement.
27.2 Reservation Priority: Long-Term Firm Point-To-Point Transmission
Service as Through or Out Service shall be available to
Participants and Non-Participants on a first-come, first-served
basis, i.e., in the chronological sequence in which each
Transmission Customer's application for reserved service is
received by the System Operator pursuant to Section 26 or Section
31, whichever is applicable. Reservations for Short-Term Firm
Point-To-Point Transmission Service will be conditional based upon
the length of the requested transaction. If the NEPOOL
Transmission System becomes
NEPOOL Open Access Transmission Tariff
Original Sheet No. 76
oversubscribed, requests for longer term service may preempt
requests for shorter term service up to the following deadlines:
one day before the commencement of daily service, one week before
the commencement of weekly service, and one month before the
commencement of monthly service. Before the deadline, if
available transmission capability is insufficient to satisfy all
Applications, an Eligible Customer with a reservation for shorter
term service has the right of first refusal to match any longer
term reservation before losing its reservation priority.
After the deadline, service will commence pursuant to the terms of
Part III of this Tariff. Firm Point-To-Point Transmission Service
as Through or Out Service will always have a reservation priority
over non-firm Point-To-Point Transmission Service under this
Tariff. All Long-Term Firm Point-To-Point Transmission Service
will have equal reservation priority with Native Load Customers
and Excepted Transactions. Reservation priorities for existing
firm
NEPOOL Open Access Transmission Tariff
Original Sheet No. 77
service customers, including customers receiving service with
respect to Excepted Transactions, are provided in Section 3.2.
27.3 Use of Firm Point-To-Point Transmission Service by the
Participants That Own PTF: A Participant that owns PTF will be
subject to the rates, terms and conditions of this Tariff when
making Third-Party Sales to be transmitted as Through or Out
Service under (i) agreements executed after November 1, 1996 or
(ii) agreements executed on or before November 1, 1996 to the
extent that the Commission requires them to be unbundled, by the
date specified by the Commission. A Participant that owns PTF
will maintain separate accounting, pursuant to Section 8, for any
use of Firm Point-To-Point Transmission Service for Through or Out
Service to make Third-Party Sales.
27.4 Service Agreements: A standard form Firm Point-To-Point
Transmission Service Agreement (Attachment A) will be offered to
an Eligible Customer when it submits a
NEPOOL Open Access Transmission Tariff
Original Sheet No. 78
Completed Application for Firm Point-To-Point Transmission
Service to be transmitted as Through or Out Service. Executed
Service Agreements that contain the information required under
this Tariff will be filed with the Commission in compliance with
applicable Commission regulations.
27.5 Transmission Customer Obligations for Facility Additions or
Redispatch Costs: In cases where it is determined that the
Transmission System is not capable of providing new Firm Point-To-
Point Transmission Service for Through or Out Service without (1)
degrading or impairing the reliability of service to Native Load
Customers, customers taking service for Excepted Transactions and
other Transmission Customers taking Firm Point-To-Point
Transmission Service as Regional Network Service, or (2)
interfering with a Participant's ability to meet prior firm
contractual commitments to others, the Participants will be
obligated to arrange to expand or upgrade PTF pursuant to the
terms of Section 33. The Transmission
NEPOOL Open Access Transmission Tariff
Original Sheet No. 79
Customer must agree to compensate the Participants or any other
entity designated to effect construction through the System
Operator for any necessary transmission facility additions or
upgrades pursuant to the terms of Section 39. To the extent
the System Operator can relieve any system constraint more
economically by redispatching the Participants' resources, rather
than through construction of additions or upgrades, it shall do
so, provided that the Eligible Customer agrees to compensate the
Participants pursuant to the terms of Section 39. Any redispatch,
addition or upgrade or Direct Assignment Facilities costs to be
charged to the Transmission Customer under this Tariff will be
specified in the Service Agreement prior to initiating service.
27.6 Curtailment of Firm Transmission Service: In the event that a
Curtailment on the NEPOOL Transmission System, or a portion
thereof, is required to maintain reliable operation of the system,
the Curtailment will be made on
NEPOOL Open Access Transmission Tariff
Original Sheet No. 80
a non-discriminatory basis to the transaction(s) that effectively
relieve the constraint. If multiple transactions require
Curtailment, to the extent practicable and consistent with Good
Utility Practice, Curtailments will be proportionally allocated
among the Participants' Firm Transmission Service customers. All
Curtailments will be made on a non-discriminatory basis; however,
non-firm Point-To-Point Transmission Service shall be subordinate
to Firm Transmission Service. When the System Operator determines
that an electrical emergency exists on the NEPOOL Transmission
System and implements emergency procedures to curtail Firm
Transmission Service, the Transmission Customer shall make the
required reductions upon the System Operator's request. However,
NEPOOL reserves the right to curtail, in whole or in part, any
Firm Transmission Service provided under this Tariff when, in the
System Operator's sole discretion, an emergency or other
unforeseen condition impairs or degrades the reliability
NEPOOL Open Access Transmission Tariff
Original Sheet No. 81
of the NEPOOL Transmission System. The System Operator will
notify all affected Transmission Customers in a timely manner of
any scheduled Curtailments.
27.7 Classification of Firm Point-To-Point Transmission Service:
(a) A Transmission Customer taking Firm Point-To-Point
Transmission Service for Through or Out Service may (1)
change its Receipt and Delivery Points to obtain service
on a non-firm basis consistent with the terms of Section
36.1 or (2) request a modification of the Points of
Receipt or Delivery on a firm basis pursuant to the terms
of Section 36.2; provided that if any Participant or other
entity has constructed new facilities or upgraded
facilities to accommodate the original firm service,
such Participant shall continue to be compensated for its
facility costs by the Transmission Customer.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 82
(b) A Transmission Customer may purchase transmission service
to make sales from multiple generating units that are on
the NEPOOL Transmission System. For such a purchase of
transmission service the resources will be designated as
multiple Points of Receipt, unless the multiple generating
units are at the same generating plant, in which case
the units will be treated as a single Point of Receipt.
(c) Firm deliveries will be provided from the Point(s) of
Receipt to the Point(s) of Delivery. Except in the case
of the sale of power under a System Contract or Firm
Contract, each Point of Receipt at which firm transmission
capacity is reserved by the Transmission Customer shall be
set forth in the Service Agreement along with a
corresponding capacity reservation associated with each
Point of Receipt. For the transmission of power under a
System Contract or Firm Contract across the Transmission
Provider's Transmission System, the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 83
Transmission Customer need specify only the maximum
capacity reservation at Points of Receipt or Points of
Delivery, rather than specific MW for each Point of
Receipt. In all other cases, each Point of Delivery
at which firm transmission capacity is reserved by the
Transmission Customer shall be set forth in the Service
Agreement along with a corresponding capacity reservation
associated with each Point of Delivery. The greater of
either (1) the sum of the capacity reservations at the
Point(s) of Receipt, or (2) the sum of the capacity
reservations at the Point(s) of Delivery shall be the
Transmission Customer's Reserved Capacity. The
Transmission Customer will be billed for its Reserved
Capacity under the terms of Schedule 8. The Transmission
Customer may not exceed its firm capacity reserved at each
Point of Receipt and each Point of Delivery except as
otherwise specified in Section 36. In the event
that a Transmission
NEPOOL Open Access Transmission Tariff
Original Sheet No. 84
Customer (including Third-Party Sales by the Participants)
exceeds its firm reserved capacity at any Point of Receipt
or Point of Delivery, it shall pay 150% of the charge
which is otherwise applicable for each Kilowatt of the
excess.
27.8 Scheduling of Firm Point-To-Point Transmission Service:
Unless other schedules are permitted pursuant to NEPOOL rules,
schedules for the Transmission Customer's Firm Point-To-Point
Transmission Service for Through or Out Service must be submitted
to the System Operator no later than noon of the day prior to
commencement of such service. Schedules submitted after noon will
be accommodated, if practicable. Hour-to-hour schedules of any
capacity and energy that is to be delivered must be stated in
increments of 1000 kW per hour. Transmission Customers with
multiple requests for Firm Point-To-Point Transmission Service at
a Point of Receipt, each of which request is under 1000 kW per
hour, may consolidate their service requests at a common Point of
Receipt into
NEPOOL Open Access Transmission Tariff
Original Sheet No. 85
units of 1000 kW per hour for scheduling and billing purposes.
Scheduling changes will be permitted up to thirty-five minutes
before the start of the next clock hour, provided that the
Delivering Party and Receiving Party also agree to the schedule
modification. The System Operator will furnish to the Delivering
Party's system operator hour-to-hour schedules equal to those
furnished by the Receiving Party (unless reduced for losses) and
will deliver the capacity and energy provided by such schedules.
Should the Transmission Customer, Delivering Party or Receiving
Party revise or terminate any schedule, such party shall
immediately notify the System Operator, and the System Operator
will have the right to adjust accordingly the schedule for
capacity and energy to be received and to be delivered.
28 Nature of Non-Firm Point-To-Point Transmission Service
28.1 Term: Non-Firm Point-To-Point Transmission Service will be
available as Through or Out Service for periods ranging from one
hour to one month. However, a
NEPOOL Open Access Transmission Tariff
Original Sheet No. 86
Purchaser of Non-Firm Point-To-Point Transmission Service for
Through or Out Service will be entitled to reserve a sequential
term of service (such as a sequential monthly term without having
to wait for the initial term to expire before requesting another
monthly term) so that the total time period for which the
reservation applies is greater than one month, subject to the
requirements of Section 32.3.
28.2 Reservation Priority: Non-Firm Point-To-Point Transmission Service
for Through or Out Service shall be available from transmission
capability in excess of that needed for reliable service to Native
Load Customers, Network Customers and other Transmission Customers
taking Long-Term and Short-Term Firm Point-To-Point Transmission
Service. A higher priority will be assigned to reservations with
a longer duration of service. In the event the NEPOOL
Transmission System is constrained, competing requests of equal
duration will be prioritized as may be determined by the System
NEPOOL Open Access Transmission Tariff
Original Sheet No. 87
Operator with the approval of the Management Committee. Eligible
Customers that have already reserved shorter term service have the
right of first refusal to match any longer term reservation before
being preempted. Transmission service for Network Customers from
resources other than designated Network Resources will have a
higher priority than any Non-Firm Point-To-Point Transmission
Service for Through or Out Service. Non-Firm Point-To-Point
Transmission Service for Through or Out Service over secondary
Point(s) of Receipt and Point(s) of Delivery will have the lowest
reservation priority under this Tariff.
28.3 Use of Non-Firm Point-To-Point Transmission Service by the
Transmission Provider: The Participants will be subject to the
rates, terms and conditions of Part V of this Tariff when taking
Through or Out Service for Third-Party Sales under (i) agreements
executed on or after November 1, 1996 or (ii) agreements
executed prior to the aforementioned date that the Commission
requires
NEPOOL Open Access Transmission Tariff
Original Sheet No. 88
to be unbundled, by the date specified by the Commission. The
Participant will maintain separate accounting, pursuant to Section
8, for any use of Through or Out Service to make Third-Party
Sales.
28.4 Service Agreements: The System Operator shall offer a standard
form Point-To-Point Transmission Service Agreement (Attachment A)
to an Eligible Customer when it first submits a Completed
Application for Non-Firm Point-To-Point Transmission Service for
Through or Out Service pursuant to the Tariff. Executed Service
Agreements that contain the information required under this
Tariff shall be filed with the Commission in compliance with
applicable Commission regulations.
28.5 Classification of Non-Firm Point-To-Point Transmission Service:
Non-Firm Point-To-Point Transmission Service shall be offered as
Through or Out Service under terms and conditions contained in
Part IV of this Tariff. The NEPOOL Participants undertake no
obligation under this Tariff to plan the NEPOOL Transmission
System in order
NEPOOL Open Access Transmission Tariff
Original Sheet No. 89
to have sufficient capacity for Non-Firm Point-To-Point
Transmission Service. Parties requesting Non-Firm Point-To-Point
Transmission Service for the transmission of firm power as Through
or Out Service do so with the full realization that such service
is subject to availability and to Curtailment or Interruption
under the terms of this Tariff. The System Operator shall specify
the rate treatment and all related terms and conditions applicable
in the event that a Transmission Customer (including Third-Party
Sales by a Participant) exceeds its non-firm capacity reservation.
(a) Non-Firm Point-To-Point Transmission Service as Through or
Out Service shall include transmission of energy on an
hourly basis and transmission of scheduled short-term
capacity and energy on a daily, weekly or monthly
basis, but not to exceed one month's reservation for any
one Application.
(b) Except in the case of the transmission of power under a
System Contract or Firm Contract, each
NEPOOL Open Access Transmission Tariff
Original Sheet No. 90
Point of Receipt at which non-firm transmission capacity
is reserved by the Transmission Customer shall be set
forth in the Application along with a corresponding
capacity reservation associated with each Point of
Receipt. For the transmission of System Power across
Transmission Provider's Transmission System, the
Transmission Customer need specify only the maximum
capacity reservation at Points of Receipt or Points of
Delivery, rather than specific MW for each Point of
Receipt.
28.6 Scheduling of Non-Firm Point-to-Point Transmission Service: Unless
other schedules are permitted pursuant to NEPOOL rules, schedules
for Non-Firm Point-To-Point Transmission Service as Through or Out
Service must be submitted to the Transmission Provider no later
than noon of the day prior to commencement of such service.
Schedules submitted after noon will be accommodated, if
practicable. Hour-to-hour schedules of energy that is to be
delivered must be stated in increments of 1,000 kW
NEPOOL Open Access Transmission Tariff
Original Sheet No. 91
per hour. Transmission Customers within the NEPOOL Control Area
with multiple requests for Transmission Service at a Point of
Receipt, each of which is under 1,000 kW per hour, may consolidate
their schedules at a common Point of Receipt into units of 1,000
kW per hour. Scheduling changes will be permitted up to thirty-
five minutes before the start of the next clock hour provided that
the Delivering Party and Receiving party also agree to the
schedule modification. The System Operator will furnish to the
Delivering Party's system operator, hour-to-hour schedules equal
to those furnished by the Receiving Party (unless reduced
for losses) and shall deliver the capacity and capacity and energy
provided by such schedules. Should the Transmission Customer,
Delivery Party or Receiving Party revise or terminate any
schedule, such party shall immediately notify the System Operator,
and the System Operator shall have the right to adjust accordingly
the schedule for capacity and energy to be received and to be
delivered.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 92
28.7 Curtailment or Interruption of Service: The System Operator
reserves the right to Curtail, in whole or in part, Non-Firm
Point-To-Point Transmission Service provided under this Tariff as
Through or Out Service for reliability reasons when, an emergency
or other unforeseen condition threatens to impair or degrade the
reliability of the NEPOOL Transmission System. The Transmission
Provider reserves the right to Interrupt, in whole or in part,
Non-Firm Point-To-Point Transmission Service provided under this
Tariff as Through or Out Service for economic reasons in order to
accommodate (1) a request for Firm Transmission Service, (2) a
request for Non-Firm Point-To-Point Transmission Service of
greater duration, or (3) transmission service for Network
Customers from non-designated resources. The System Operator also
will discontinue or reduce service to the Transmission Customer to
the extent that
NEPOOL Open Access Transmission Tariff
Original Sheet No. 93
(As corrected)
deliveries for transmission are discontinued or reduced at the
Point(s) of Receipt. Where required, Curtailments or
Interruptions will be made on a non-discriminatory basis to the
transaction(s) that effectively relieve the constraint,
however, Non-Firm Point-To-Point Transmission Service furnished as
Through or Out Service shall be subordinate to Firm Transmission
Service. If multiple transactions require Curtailment or
Interruption, to the extent practicable and consistent with Good
Utility Practice, Curtailments or Interruptions will be made
to transactions of the shortest term (e.g., hourly non-firm
transactions will be Curtailed or Interrupted before daily non-
firm transactions and daily non-firm transactions will be
Curtailed or Interrupted before weekly non-firm transactions).
Transmission service for Network Customers from resources other
than designated Network Resources will have a higher priority than
any Non-Firm Point-To-Point Transmission Service furnished as
Through
NEPOOL Open Access Transmission Tariff
Original Sheet No. 94
or Out Service under this Tariff. Non-Firm Point-To-Point
Transmission Service furnished as Through or Out Service over
secondary Point(s) of Receipt and Point(s) of Delivery will have a
lower priority than any Non-Firm Point-To-Point Transmission
Service under this Tariff. The System Operator will provide
advance notice of Curtailment or Interruption where such notice
can be provided consistent with Good Utility Practice.
29 Service Availability
29.1 General Conditions: Firm Point-To-Point Transmission Service as
Through or Out Service over, on or across the NEPOOL Transmission
System is available to any Transmission Customer that has met the
requirements of Section 26 or Section 31.
29.2 Determination of Available Transmission Capability:
A description of NEPOOL's specific methodology for assessing
available transmission capability posted on the NEPOOL
OASIS(Section 5) is contained in Attachment C of this Tariff. In
the event sufficient transmission
NEPOOL Open Access Transmission Tariff
Original Sheet No. 95
capability may not exist to accommodate a service request, a
System Impact Study will be performed.
29.3 Initiating Service in the Absence of an Executed Service
Agreement: If the System Operator and the Transmission Customer
requesting Firm Point-To-Point Transmission Service cannot agree
on all the terms and conditions of the applicable Service
Agreement, the System Operator will file with the Commission,
within thirty days after the date the Transmission Customer
provides written notification directing the System Operator to
file, an unexecuted Service Agreement containing terms and
conditions deemed appropriate by the System Operator for such
requested transmission service. The service will be commenced
subject to the Transmission Customer agreeing to (i) pay whatever
rate the Commission ultimately determines to be just and
reasonable, and (ii) comply with the terms and conditions of this
Tariff including posting appropriate security deposits in
accordance with the terms of Section 31.3.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 96
29.4 Obligation to Provide Transmission Service that Requires Expansion
or Modification of the Transmission System: If it is determined
that the service requested in a Completed Application for Long-
Term Firm Point-To-Point Transmission Service as Through or Out
Service cannot be provided because of insufficient capability on
the NEPOOL Transmission System, one or more Participants or other
entities will be designated to use due diligence to expand or
modify the NEPOOL Transmission System to provide the requested
Long-Term Firm Point-to-Point Transmission Service as Through or
Out Service, provided that the Transmission Customer agrees to
compensate the Participants or other entities that will be
responsible for the construction of any new facilities or
upgrades for the costs of such new facilities or upgrades pursuant
to the terms of Section 39. The System Operator and the
designated Participants or other entities will conform to Good
Utility Practice in determining the need for new transmission
facilities or
NEPOOL Open Access Transmission Tariff
Original Sheet No. 97
upgrades and in coordinating the design and construction of such
facilities. This obligation applies only to those facilities that
the designated Participants or other entities have the right to
expand or modify.
29.5 Deferral of Service: Long-Term Firm Point-To-Point Transmission
Service as Through or Out Service may be deferred until the
designated Participants or other entities complete construction of
new transmission facilities or upgrades needed to provide such
service whenever it is determined that providing the requested
service would, without such new facilities or upgrades, impair or
degrade reliability to any existing Firm Transmission Service.
29.6 Real Power Losses: Real power losses are associated with all
transmission service. NEPOOL is not obligated to provide real
power losses. The applicable real power loss factor shall be
determined by the System Operator on the basis of incremental loss
studies on a transaction basis.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 98
30 Transmission Customer Responsibilities
30.1 Conditions Required of Transmission Customers: Firm Point-To-Point
Transmission Service as Through or Out Service will be provided
only if the following conditions are satisfied by the Transmission
Customer:
a. The Transmission Customer has pending a Completed
Application for service, if required pursuant to Section
26;
b. In the case of a Non-Participant, the Transmission
Customer meets the creditworthiness criteria set forth in
Section 11;
c. The Transmission Customer will have arrangements in place
for any other transmission service necessary to effect
the delivery from the generating source to the Point of
Receipt prior to the time service under the Tariff
commences;
d. The Transmission Customer agrees to pay for any facilities
or upgrades constructed or any redispatch costs chargeable
to such Transmission
NEPOOL Open Access Transmission Tariff
Original Sheet No. 99
Customer under this Tariff, whether or not the
Transmission Customer takes service for the full term of
its reservation; and
e. If required, the Transmission Customer has executed an
applicable Service Agreement or has agreed to receive
service pursuant to Section 29.3.
30.2 Transmission Customer Responsibility for Third-Party Arrangements:
Any scheduling arrangements that may be required by other electric
systems shall be the responsibility of the Transmission Customer
requesting service. (If Local Network Service will be required,
the System Operator shall notify the Transmission Customer and the
affected Participants.) The Transmission Customer shall provide,
unless waived by the System Operator, notification to the
System Operator identifying such other electric systems and
authorizing them to schedule the capacity and energy to be
transmitted pursuant to this Tariff on behalf of the Receiving
Party at the Point of Delivery or the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 100
Delivering Party at the Point of Receipt. The System Operator
will undertake reasonable efforts to assist the Transmission
Customer in making such arrangements, including without
limitation, providing any information or data required by such
other electric system pursuant to Good Utility Practice.
31 Procedures for Arranging Firm Point-To-Point Transmission Service
31.1 Application: Subject to Section 26, a request for Firm Point-To-
Point Transmission Service for periods of one year or longer must
be made in an Application, delivered to the New England Power
Pool, One Sullivan Road, Holyoke, MA 01040-2841 or, following the
activation of the ISO, to the ISO at the same address, or such
other address as may be specified from time to time. The request
should be delivered at least sixty days in advance of the calendar
month in which service is requested to commence. The System
Operator will consider requests for such firm service on shorter
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notice when practicable. Requests for firm service for periods of
less than one year will be subject to expedited procedures that
will be negotiated between the System Operator and the party
requesting service within the time constraints provided in Section
27.8. All Firm Point-To-Point Transmission Service requests
for Through or Out Service should be submitted by entering the
information listed below on the NEPOOL OASIS. Prior to
implementation of the NEPOOL OASIS, a Completed Application may be
submitted by (i) transmitting the required information to NEPOOL
by telefax, or (ii) providing the information by telephone over
NEPOOL's time recorded telephone line. Each of these methods
will provide a time-stamped record for establishing the priority
of the Application.
31.2 Completed Application: A Completed Application for Firm Point-To-
Point Transmission as Through or Out Service shall provide all of
the information included at 18
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C.F.R. <section>2.20 of the Commission's regulations, including
but not limited to the following:
(i) The identity, address, telephone number and
facsimile number of the entity requesting service;
(ii) A statement that the entity requesting service is,
or will be upon commencement of service, an
Eligible Customer under this Tariff;
(iii) The location of the Point(s) of Receipt and Point(s) of
Delivery and the identities of the Delivering Parties and
the Receiving Parties;
(iv) The location of the generating facility(ies)
supplying the capacity and energy and the location
of the load ultimately served by the capacity and
energy transmitted. The System Operator will treat
this information as confidential in accordance with
the NEPOOL information policy except to the extent
that disclosure of this information is required by
this Tariff, by regulatory or judicial order, for
reliability purposes pursuant to Good Utility
Practice. The System Operator will treat this
information consistent with the standards of
conduct contained in 18 C.F.R. <section>37 of the
Commission's regulations;
(v) A description of the supply characteristics of the
capacity and energy to be delivered;
(vi) An estimate of the capacity and energy expected to
be delivered to the Receiving Party;
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(vii) The Service Commencement Date and the term of the
requested transmission service; and
(viii) The transmission capacity requested for each Point of
Receipt and each Point of Delivery on the NEPOOL
Transmission System; customers may combine their requests
for service in order to satisfy the minimum transmission
capacity requirement.
The System Operator will treat this information consistent with
the standards of conduct contained in 18 C.F.R. Part 37 of the
Commission's regulations.
31.3 Deposit: A Completed Application for Firm Point-To-Point
Transmission Service as Through or Out Service by a Non-
Participant shall also include a deposit of either one month's
charge for Reserved Capacity or the full charge for Reserved
Capacity for service requests of less than one month. If the
Application is rejected by the System Operator because it does not
meet the conditions for service as set forth herein, or in the
case of requests for service arising in connection with losing
bidders in a request for proposals (RFP), the deposit will
be returned with Interest, less any
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Original Sheet No. 104
reasonable Administrative Costs incurred by the System Operator or
any affected Participants in connection with the review of the
Application. The deposit also will be returned with Interest less
any reasonable Administrative Costs incurred by the System
Operator or any affected Participants if the new facilities or
upgrades needed to provide the service cannot be completed. If an
Application is withdrawn or the Eligible Customer decides not to
enter into a Service Agreement for the Service, the deposit will
be refunded in full, with Interest, less reasonable Administrative
Costs incurred by the System Operator or any affected Participants
to the extent such costs have not already been recovered from the
Eligible Customer. The System Operator will provide to the
Eligible Customer a complete accounting of all costs deducted from
the refunded deposit, which the Eligible Customer may contest if
there is a dispute concerning the deducted costs. Deposits
associated with construction of new
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facilities or upgrades are subject to the provisions of Section
33. If a Service Agreement for Firm Point-To-Point Transmission
Service is executed, the deposit, with interest, will be returned
to the Transmission Customer upon expiration of the Service
Agreement. Applicable Interest will be calculated from
the day the deposit is credited to the System Operator's account.
31.4 Notice of Deficient Application: If an Application fails to meet
the requirements of this Tariff, the System Operator will notify
the entity requesting service within fifteen days of the System
Operator's receipt of the Application of the reasons for
such failure. The System Operator will attempt to remedy minor
deficiencies in the Application through informal communications
with the Eligible Customer. If such efforts are unsuccessful, the
System Operator will return the Application, along with any
deposit (less the reasonable Administrative Costs incurred by the
System Operator or any affected Participants in connection with
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Original Sheet No. 106
the Application), with Interest. Upon receipt of a new or revised
Application that fully complies with the requirements of this
Tariff, the Eligible Customer will be assigned a new priority
based upon the date of receipt by the System Operator of
the new or revised Application.
31.5 Response to a Completed Application: Following receipt of a
Completed Application for Firm Point-To-Point Transmission Service
as Through or Out Service, or compliance with Section 26,
whichever is applicable, a determination of available transmission
capability will be made pursuant to Section 29.2 or 26,
whichever is applicable. The Eligible Customer will be notified
as soon as practicable, but not later than thirty days after the
date of receipt of a Completed Application, if required, that
either (i) service will be provided without performing a System
Impact Study, or (ii) such a study is needed to evaluate the
impact of the Application pursuant to Section 33.1.
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31.6 Execution of Service Agreement: Whenever the System Operator
determines that a System Impact Study is not required and that the
requested service can be provided, it will notify the Eligible
Customer as soon as practicable but no later than thirty days
after receipt of the Completed Application, and will tender a
Service Agreement to the Eligible Customer. Failure of an
Eligible Customer to execute and return the Service Agreement or
request the filing of an unexecuted Service Agreement pursuant to
Section 29.3, within fifteen days after it is tendered by the
System Operator shall be deemed a withdrawal and termination of
the Application and any deposit (less the reasonable
Administrative Costs incurred by the System Operator and any
affected Participants in connection with the Application)
submitted will be refunded with Interest. Nothing herein limits
the right of an Eligible Customer to file another Application
after such withdrawal and termination. Where a System Impact
Study is required,
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the provisions of Section 33 will govern the execution of a
Service Agreement.
31.7 Extensions for Commencement of Service: The Transmission Customer
can obtain up to five one-year extensions for the commencement of
service. The Transmission Customer may postpone service by paying
a non-refundable annual reservation fee equal to one-month's
charge for Firm Point-To-Point Transmission Service as Through or
Out Service for each year or fraction thereof. If during any
extension for the commencement of service an Eligible Customer
submits a Completed Application for Firm Point-To-Point
Transmission Service, and such request can be satisfied only by
releasing all or part of the Transmission Customer's Reserved
Capacity, the original Reserved Capacity will be released
unless the following condition is satisfied: within thirty days,
the original Transmission Customer agrees to pay the applicable
rate for Firm Point-To-Point Transmission Service as Through
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Original Sheet No. 109
or Out Service for its Reserved Capacity for the period that its
reservation overlaps the period covered by such Eligible
Customer's Completed Application. In the event the Transmission
Customer elects to release the Reserved Capacity, the reservation
fees or portions thereof previously paid will be forfeited.
32 Procedures for Arranging Non-Firm Point-To-Point Transmission Service
32.1 Application: Eligible Customers seeking Non-Firm Point-To-Point
Transmission Service for Through or Out Service must submit a
Completed Application to the System Operator. Applications should
be submitted by entering the information listed below on the
NEPOOL's OASIS. Prior to implementation of the NEPOOL OASIS, a
Completed Application may be submitted by (i) transmitting the
required information to the System Operator by telefax, or (ii)
providing the information by telephone over the System Operator's
time recorded telephone line. Each of these methods will provide
a
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Original Sheet No. 110
time-stamped record for establishing the service priority of the
Application.
32.2 Completed Application: A Completed Application shall provide all
of the information included in 18 C.F.R. <section>2.20 including
but not limited to the following:
(i) The identity, address, telephone number and
facsimile number of the entity requesting service;
(ii) A statement that the entity requesting service is,
or will be upon commencement of service, an
Eligible Customer under this Tariff;
(iii) The Point(s) of Receipt and the Point(s) of Delivery;
(iv) The maximum amount of capacity requested at each
Point of Receipt and Point of Delivery; and
(v) The proposed dates and hours for initiating and
terminating transmission service hereunder.
In addition to the information specified above, when required to
properly evaluate system conditions, the System Operator also may
ask the Transmission Customer to provide the following:
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(vi) The electrical location of the initial source of
the power to be transmitted pursuant to the
Transmission Customer's request for service; and
(vii) The electrical location of the ultimate load.
The System Operator will treat this information in (vi) and (vii)
as confidential at the request of the Transmission Customer except
to the extent that disclosure of this information is required by
this Tariff, by regulator or judicial order, for reliability
purposes pursuant to Good Utility Practice, or pursuant to the
NEPOOL Information Policy. The System Operator shall treat this
information consistent with the standards of conduct contained in
Part 37 of the Commission's regulations.
32.3 Reservation of Non-Firm Point-To-Point Transmission Service:
Requests for monthly service shall be submitted no earlier than
sixty days before service is to commence; requests for weekly
service shall be submitted
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no earlier than fourteen days before service is to commence,
requests for daily service shall be submitted no earlier than five
days before service is to commence, and requests for hourly
service shall be submitted no earlier than noon the second
day before service is to commence. Requests for service received
later than noon prior to the day service is scheduled to commence
will be accommodated if practicable.
32.4 Determination of Available Transmission Capability: Following
receipt of a tendered schedule the System Operator will make a
determination on a non-discriminatory basis of available
transmission capability pursuant to Section 29.2. Such
determination shall be made as soon as reasonably practicable
after receipt, but not later than the following time periods for
the following terms of service (i) thirty-five minutes for hourly
service, (ii) thirty-five minutes for daily service, (iii) four
hours for weekly service, and (iv) two days for monthly service.
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33 Additional Study Procedures For Firm Point-To-Point Transmission Service
Requests
33.1 Notice of Need for System Impact Study: After receiving a request
for Firm Point-To-Point Transmission Service as Through or Out
Service, the System Operator will review the effect of the
proposed service on the reliability requirements to meet existing
and pending obligations of the Participants and the obligations of
the particular Participants whose PTF facilities will be impacted
by the proposed service and determine on a non-discriminatory
basis whether a System Impact Study is needed. A description of
the methodology for completing a System Impact Study is provided
in Attachment D. If the System Operator determines that a System
Impact Study is necessary to accommodate the requested service, as
soon as practicable thereafter the System Operator will so inform
the Eligible Customer and any affected Participants if the System
Impact Study is to be performed by the Participants. If the
likely
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result of the study is that a Direct Assignment Facility will be
required, the study shall be performed by the affected
Participants, subject to review by the System Operator. In such
cases, the System Operator will within thirty days of receipt of
a Completed Application, or compliance with Section 26, whichever
is applicable, tender a System Impact Study agreement in the form
of Exhibit I to this Tariff, or in any other form that is mutually
agreed to, pursuant to which the Eligible Customer shall agree to
reimburse NEPOOL and any affected Participants for performing the
required System Impact Study. For a service request to remain a
Completed Application, the Eligible Customer shall execute
the System Impact Study agreement and return it to the System
Operator within fifteen days. If the Eligible Customer elects not
to execute a System Impact Study agreement, its application shall
be deemed withdrawn and its deposit (less the reasonable
Administrative Costs incurred by the System Operator and
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any affected Participants in connection with the Application),
will be returned with Interest.
33.2 System Impact Study Agreement and Cost Reimbursement:
(i) The System Impact Study agreement shall clearly specify
the maximum charge, based on the System Operator's
estimate of the actual cost, and time for completion of
the System Impact Study. The charge shall not
exceed the actual cost of the study. In performing the
System Impact Study, the System Operator and any affected
Participants will rely, to the extent reasonably
practicable, on existing transmission planning studies.
The Eligible Customer shall not be assessed a charge for
such existing studies; however, the Eligible Customer
shall be responsible for charges associated with any
modifications to existing planning studies that are
reasonably necessary to evaluate the impact of the
Eligible Customer's
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request for service on the NEPOOL Transmission System.
(ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation,
a single System Impact Study is sufficient for the System
Operator to accommodate the requests for service, the
costs of that study will be equitably pro-rated among the
Eligible Customers.
(iii) For System Impact Studies that the System Operator and any
affected Participants conduct on behalf of the
Participants, the Participants will record the cost of the
System Impact Studies pursuant to Section 8.5.
33.3 System Impact Study Procedures: Upon receipt of an executed
System Impact Study agreement, the System Operator and any
affected Participants will use due diligence to complete the
required System Impact Study within a sixty day period.
The System Impact Study
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shall identify any system constraints and redispatch options and
the need for additional Direct Assignment Facilities or facility
additions or upgrades required to provide the requested service.
In the event that the required System Impact Study cannot be
completed within such time period, the System Operator will so
notify the Eligible Customer and provide an estimated completion
date along with an explanation of the reasons why additional time
is required to complete the required study and an estimate of any
increase in cost which will result from the delay. A copy of the
completed System Impact Study and related work papers shall be
made available to the Eligible Customer. The System Operator will
use the same due diligence in completing the System Impact Study
for an Eligible Customer that is a Non-Participant as it uses when
completing studies for the Participants. The System Operator will
notify the Eligible Customer immediately upon completion of the
System Impact Study if the NEPOOL Transmission System
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will be adequate to accommodate all or part of a request for
service or that no costs are likely to be incurred for new
transmission facilities or upgrades. Within fifteen days of
completion of the System Impact Study, the Eligible Customer
must execute a Service Agreement or request the filing of an
unexecuted Service Agreement pursuant to Section 29.3, or the
Application shall be deemed terminated and withdrawn.
33.4 Facilities Study Procedures: If a System Impact Study indicates
that additions or upgrades to the NEPOOL Transmission System are
needed to supply the Eligible Customer's service request, the
System Operator, within thirty days of the completion of the
System Impact Study, will tender to the Eligible Customer a
Facilities Study agreement in the form of Exhibit J to this
Tariff, or in any other form that is mutually agreed to, pursuant
to which the Eligible Customer shall agree to reimburse the System
Operator and any affected Participants or other entity designated
by the System
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Operator for performing any required Facilities Study. For a
service request to remain a Completed Application, the Eligible
Customer shall execute the Facilities Study agreement and return
it to the System Operator within fifteen days. If the Eligible
Customer elects not to execute the Facilities Study agreement, its
application shall be deemed withdrawn and its deposit (less the
reasonable Administrative Costs incurred by the System Operator
and any affected Participants in connection with the Application)
will be returned with Interest. Upon receipt of an executed
Facilities Study agreement, the System Operator and any affected
Participants or other designated entity will use due diligence to
cause the required Facilities Study to be completed within a sixty
day period. If a Facilities Study cannot be completed in the
allotted time period, the System Operator will notify the
Transmission Customer and provide an estimate of the time needed
to reach a final determination and any resulting increase in the
cost,
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Original Sheet No. 120
along with an explanation of the reasons that additional time is
required to complete the study. When completed, the Facilities
Study shall include a good faith estimate of (i) the cost of
Direct Assignment Facilities to be charged to the Transmission
Customer, or (ii) the Transmission Customer's appropriate share of
the cost of any required additions or upgrades, and (iii) the time
required to complete such construction and initiate the requested
service. The Transmission Customer shall provide a letter of
credit or other reasonable form of security acceptable to the
Participant(s) or other entities that will be responsible for the
construction of the new facilities or upgrades equivalent to the
costs of the new facilities or upgrades and consistent with
relevant commercial practices, as established by the Uniform
Commercial Code. The Transmission Customer shall have thirty days
to execute a Service Agreement or request the filing of an
unexecuted Service Agreement with the Commission and provide the
required letter of
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credit or other form of security or the request will no longer be
a Completed Application and shall be deemed terminated and
withdrawn.
33.5 Facilities Study Modifications: Any change in design arising from
inability to site or construct proposed facilities will require
development of a revised good faith estimate. New good faith
estimates also will be required in the event of new statutory or
regulatory requirements that are effective before the completion
of construction or other circumstances beyond the control of the
Participants or other entities that are responsible for the
construction of the new facilities or upgrades and that
significantly affect the final cost of the new facilities or
upgrades to be charged to the Transmission Customer pursuant to
the provisions of this Tariff.
33.6 Due Diligence in Completing New Facilities: The System Operator
will use due diligence to designate Participants or other entities
to add necessary
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Original Sheet No. 122
facilities or upgrade the NEPOOL Transmission System within a
reasonable time. A Participant or other entity will have no
obligation to upgrade its existing or planned transmission system
in order to provide the requested Firm Point-To-Point Transmission
Service as Through or Out Service if doing so would impair system
reliability or otherwise impair or degrade existing firm service.
33.7 Partial Interim Service: If the System Operator determines that
there will not be adequate transmission capability to satisfy the
full amount of a Completed Application, or a request for service
pursuant to Section 26, whichever is applicable, for Long-Term
Firm Point-To-Point Transmission Service as Through or Out
Service, the portion of the requested Service that can be
accommodated without addition of any facilities or upgrades and
through redispatch will be offered and provided. However, there
shall be no obligation to provide the incremental amount of
requested Long-Term
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Firm Point-To-Point Transmission Service that requires the
addition of facilities or upgrades to the NEPOOL Transmission
System until such facilities or upgrades have been placed in
service.
33.8 Expedited Procedures for New Facilities: In lieu of the
procedures set forth above, the Eligible Customer shall have the
option to expedite the process by requesting the System Operator
to tender at one time, together with the results of required
studies, an "Expedited Service Agreement" pursuant to which the
Eligible Customer would agree to pay for all costs incurred
pursuant to the terms of this Tariff. In order to exercise this
option, the Eligible Customer shall request in writing an
Expedited Service Agreement covering all of the above-specified
items within thirty days of receiving the results of the System
Impact Study identifying the need for facility additions or
upgrades and costs to be incurred in providing the requested
service. While the System Operator, on behalf of the Participants
or other
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Original Sheet No. 124
entities that will be responsible for constructing the new
facilities or upgrades, agrees to provide the Eligible Customer
with its best estimate of the new facility costs and other charges
that may be incurred, such estimate shall not be binding
and the Eligible Customer shall agree in writing to pay for all
costs incurred pursuant to the provisions of this Tariff. The
Eligible Customer shall execute and return such an Expedited
Service Agreement within fifteen days of its receipt or
the Eligible Customer's request for service will cease to be a
Completed Application and will be deemed terminated and withdrawn.
34 Procedures if New Transmission Facilities for Firm Point-To-Point
Transmission Service Cannot be Completed
34.1 Delays in Construction of New Facilities: If any event occurs
that will materially affect the time for completion of new
facilities for Firm Point-To-Point Service as Through or Out
Service, or the ability to complete such facilities, the
System Operator will
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promptly notify the Transmission Customer. In such circumstances,
the System Operator will within thirty days of notifying the
Transmission Customer of such delays, convene a technical meeting
with the Transmission Customer and any affected Participants or
other entities responsible for construction to evaluate the
alternatives available to the Transmission Customer. The System
Operator and the affected Participants or other entities will make
available to the Transmission Customer studies and work papers
related to the delay, including all information that is in the
possession of the System Operator or the Participants or other
entities that are responsible for the construction of the new
facilities or upgrades that is reasonably needed by the
Transmission Customer to evaluate any alternatives.
34.2 Alternatives to the Original Facility Additions: When the review
process of Section 34.1 determines that one or more alternatives
exist to the originally planned
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construction project, the System Operator will present such
alternatives for consideration by the Transmission Customer. If,
upon review of any alternatives, the Transmission Customer desires
to proceed with its Completed Application subject to construction
of the alternative facilities, it may request the System
Operator to submit a revised Service Agreement. If the
alternative approach solely involves Non-Firm Point-To-Point
Transmission Service, the System Operator will promptly tender a
Service Agreement for Non-Firm Point-To-Point Transmission Service
providing for such service, if a Service Agreement is required for
the service. In the event the System Operator and the affected
Participants or other entities responsible for construction
conclude that no reasonable alternative exists and the
Transmission Customer disagrees, the Transmission Customer may
seek relief under the dispute resolution procedures pursuant to
Section 12 or it may refer the dispute to the Commission for
resolution.
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Original Sheet No. 127
34.3 Refund Obligation for Unfinished Facility Additions:
If the System Operator, the affected Participants or other
entities responsible for construction and the Transmission
Customer mutually agree that no other reasonable alternatives
exist and the requested service cannot be provided out of
existing capability under the conditions of this Tariff, the
obligation to provide the requested Firm Point-To-Point
Transmission Service as Through or Out Service shall terminate and
any deposit made by the Transmission Customer shall be returned,
with Interest. The Transmission Customer shall be responsible for
all costs prudently incurred by the System Operator and by the
Participants or other entities that have been responsible for the
construction of the new facilities or upgrades through the date
that any required regulatory approval is denied or construction is
suspended and for cost of removal, if necessary, of facilities
constructed prior to suspension.
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35 Provisions Relating to Transmission Construction and Services on the
Systems of Other Utilities
35.1 Responsibility for Third-Party System Additions: Neither the
System Operator nor any Participant will be responsible for making
arrangements for any necessary engineering, permitting, and
construction of transmission or distribution facilities
on the system(s) of any other entity or for obtaining any
regulatory approval for such facilities. The System Operator will
undertake reasonable efforts to assist the Transmission Customer
in obtaining such arrangements, including without limitation,
providing any information or data required by such other electric
system pursuant to Good Utility Practice.
35.2 Coordination of Third-Party System Additions: In circumstances
where the need for transmission facilities or upgrades is
identified pursuant to the provisions of this Tariff, and if such
upgrades further require the addition of transmission facilities
on third-party
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Original Sheet No. 129
systems, the System Operator and the Participants or other
entities that are responsible for the construction of any new
facilities or upgrades on the NEPOOL Transmission System will have
the right to coordinate construction on the NEPOOL Transmission
System with the construction required by the third parties. The
System Operator and the Participants or other entities that are
responsible for the construction of any new facilities or upgrades
on the NEPOOL Transmission System may, after consultation with the
Transmission Customer and representatives of such other systems,
defer construction of new transmission facilities or upgrades on
the NEPOOL Transmission System if the new transmission facilities
on another system cannot be completed in a timely manner.
The System Operator will notify the Transmission Customer in
writing of the basis for any decision to defer construction and
the specific problems that must be resolved before the
construction of new facilities will be initiated or resumed.
Within
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sixty days of receiving written notification by the System
Operator of a decision to defer construction pursuant to this
section, the Transmission Customer may challenge the decision in
accordance with the dispute resolution procedures contained in
Section 12 or it may refer the dispute to the Commission for
resolution.
36 Changes in Service Specifications
36.1 Modifications on a Non-Firm Basis: The Transmission Customer
taking Firm Point-To-Point Transmission Service as Through or Out
Service may submit a request to the System Operator for
transmission service on a non-firm basis over Point(s) of Receipt
and Point(s) of Delivery other than those specified in the
Service Agreement ("Secondary Receipt and Delivery Points"), in
amounts not to exceed the Transmission Customer's firm capacity
reservation, without executing a new Service Agreement, subject to
the following conditions:
(a) service provided over Secondary Receipt and Delivery
Points will be non-firm only, on an as-
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available basis, and will not displace any firm or
non-firm service reserved or scheduled by Participants or
Non-Participants under this Tariff or by the Participants
on behalf of their Native Load Customers or Excepted
Transactions;
(b) the sum of all Firm Point-To-Point Transmission Service
and Non-Firm Point-To-Point Transmission Service provided
to the Transmission Customer as Through or Out Service at
any time pursuant to this section shall not exceed the
Reserved Capacity specified in the relevant Service
Agreement under which such services are provided;
(c) the Transmission Customer shall retain its right to
schedule Firm Point-To-Point Transmission Service as
Through or Out Service at the Point(s) of Receipt and
Point(s) of Delivery specified in the relevant Service
Agreement in the amount of the Transmission Customer's
original capacity reservation, and
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Original Sheet No. 132
(d) all other requirements of this Tariff (except as to
transmission rates) shall apply to transmission service on
a non-firm basis over Secondary Receipt and Delivery
Points.
36.2 Modification on a Firm Basis: Any request by a Transmission
Customer to modify Point(s) of Receipt and Point(s) of Delivery on
a firm basis shall be treated as a new request for service in
accordance with Section 31, except that such Transmission Customer
shall not be obligated to pay any additional deposit if
the capacity reservation does not exceed the amount reserved in
the existing Service Agreement. While such new request is
pending, the Transmission Customer shall retain its priority for
service at the firm Receipt Point(s) and Delivery Point(s)
specified in the Transmission Customer's Service Agreement.
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37 Sale, Assignment or Transfer of Transmission Service
37.1 Procedures for Sale, Assignment or Transfer of Service:
Subject to Commission action on any necessary filings, a
Transmission Customer may sell, assign, or transfer all or a
portion of its rights under its Service Agreement, but only to
another Eligible Customer (the "Assignee"). The Transmission
Customer that sells, assigns or transfers its rights under its
Service Agreement is hereafter referred to as the "Reseller."
Compensation to the Reseller shall not exceed the higher of (i)
the original rate paid by the Reseller,(ii) the maximum applicable
rate on file under this Tariff at the time of the assignment, or
(iii) the Reseller's opportunity cost. If the Assignee does not
request any change in the Point(s) of Receipt or the Point(s) of
Delivery, or a change in any other term or condition set forth in
the original Service Agreement, the Assignee shall receive the
same services as did the Reseller and the priority of service for
the Assignee shall be the same as that of
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Original Sheet No. 134
the Reseller. A Reseller shall notify the System Operator as soon
as possible after any sale, assignment or transfer of service
occurs, but in any event, notification must be provided prior to
any provision of service to the Assignee. The Assignee
shall be subject to all terms and conditions of this Tariff. If
the Assignee requests a change in service, the reservation
priority of service will be determined by the System Operator
pursuant to Section 27.2.
37.2 Limitations on Assignment or Transfer of Service: If the Assignee
requests a change in the Point(s) of Receipt or Point(s) of
Delivery, or a change in any other specifications set forth in the
original Service Agreement, the System Operator will consent to
such change subject to the provisions of this Tariff, provided
that the change will not impair the operation and reliability of
the Participants' generation, transmission, or distribution
systems. The Assignee shall compensate the System Operator and
any affected
NEPOOL Open Access Transmission Tariff
Original Sheet No. 135
Participants for performing any System Impact Study needed to
evaluate the capability of the NEPOOL Transmission System to
accommodate the proposed change and any additional costs resulting
from such change. The Reseller shall remain liable for the
performance of all obligations under the Service Agreement,
except as specifically agreed to by the System Operator, the
Reseller and the Assignee through an amendment to the Service
Agreement.
37.3 Information on Assignment or Transfer of Service: In accordance
with Section 5, Transmission Customers may use the NEPOOL OASIS to
post information regarding transmission capacity available for
resale.
38 Metering and Power Factor Correction at Receipt and Delivery Points(s)
38.1 Transmission Customer Obligations: Unless the System Operator
otherwise agrees, the Transmission Customer shall be responsible
for installing and maintaining compatible metering and
communications equipment to
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Original Sheet No. 136
accurately account for the capacity and energy being transmitted
under this Tariff and to communicate the information to the System
Operator. Such equipment shall remain the property of the
Transmission Customer.
38.2 NEPOOL Access to Metering Data: The System Operator will have
access to such metering data as may reasonably be required to
facilitate measurements and billing under the Service Agreement.
38.3 Power Factor: Unless otherwise agreed, the Transmission Customer
is required to maintain a power factor within the same range as
the Participants maintain pursuant to Good Utility Practice and
applicable NEPOOL requirements. The power factor requirements are
specified in the Service Agreement, where applicable.
39 Compensation for New Facilities and Redispatch Costs
Whenever a System Impact Study performed in connection with the provision
of Firm Point-To-Point Transmission Service as Through or Out Service
identifies the need for new facilities or upgrades, the Transmission
Customer shall be responsible
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for such costs to the extent they are consistent with Commission
requirements and the Agreement. Whenever a System Impact Study
identifies capacity constraints that may be relieved more economically by
redispatching the Participants' resources than by building new facilities
or upgrading existing facilities to eliminate such constraints, the
Transmission Customer shall be responsible for the redispatch costs to
the extent consistent with applicable Commission requirements.
VI. REGIONAL NETWORK SERVICE (INCLUDING NETWORK INTEGRATION TRANSMISSION
SERVICE)
The Participants will provide NEPOOL Regional Network Service, as
described in Part II of this Tariff, including the service required to
provide Network Integration Transmission Service, to Participants and
Non-Participants pursuant to the applicable terms and conditions
contained in this Tariff. Part II of this Tariff specifies the terms and
conditions which are generally applicable to the receipt of Regional
Network Service by both Participants and Non-
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Participants. This Part VI specifies additional provisions with respect
to the provision of Regional Network Service, including Network
Integration Transmission Service, to Non-Participants and, subject to
Section 26 of this Tariff to Participants.
40 Nature of Network Integration Transmission Service
40.1 Scope of Service: Network Integration Transmission Service is a
transmission service that allows Network Customers to efficiently
and economically utilize their Network Resources (as well as other
non-designated generation resources) to serve their Network Load
located in the NEPOOL Control Area and any additional load that
may be designated pursuant to Section 43.3 of this Tariff.
The Network Customer taking Network Integration Transmission
Service must obtain or provide Ancillary Services pursuant to
Section 4.
40.2 Transmission Provider Responsibilities: The NEPOOL Participants
will plan, construct, operate and maintain the NEPOOL Transmission
System in accordance with Good
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Utility Practice in order to provide the Network Customer with
Network Integration Transmission Service over the NEPOOL
Transmission System. The Participants shall include the Network
Customer's Network Load in NEPOOL Transmission System planning and
shall, consistent with Good Utility Practice, endeavor to
construct and place into service sufficient transmission capacity
to deliver the Network Customer's Network Resources to serve its
Network Load on a basis comparable to the Participants' delivery
of their own generating and purchased resources to their Native
Load Customers.
40.3 Network Integration Transmission Service: The Participants will
provide firm transmission service over the NEPOOL Transmission
System to the Network Customer for the delivery of capacity and
energy from its designated Network Resources to service its
Network Loads on a basis that is comparable to the Participants'
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use of the NEPOOL Transmission System to reliably serve their
Native Load Customers.
40.4 Secondary Service: The Network Customer may use the NEPOOL
Transmission System to deliver energy to its Network Loads from
resources that have not been designated as Network Resources.
Such energy shall be transmitted, on an as-available basis, at no
additional charge as part of Regional Network Service. Deliveries
from resources other than Network Resources will have a higher
priority than any Non-Firm Point-To-Point Transmission Service
under this Tariff.
40.5 Real Power Losses: Real Power Losses are associated with all
transmission service. The Transmission Providers are not
obligated to provide Real Power Losses. To the extent PTF losses
are not specifically allocated through the market procedures
provided for in Section 14 of the Agreement, total remaining
PTF losses, minus point-to-point losses, shall be allocated to all
load plus interruptible load on a load ratio basis.
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40.6 Restrictions on Use of Service: The Network Customer is entitled
to use Regional Network Service, including Network Integration
Transmission Service for any of the uses specified in Part II of
this Tariff.
41 Initiating Service
41.1 Condition Precedent for Receiving Service: Subject to the terms
and conditions of Parts II and VI of this Tariff, the Transmission
Provider will provide Network Integration Transmission Service and
other forms of Regional Network Service to any Non-Participant
which is an Eligible Customer, provided that, subject to
Section 26, (i) the Eligible Customer completes an Application for
service as provided under Part VI of this Tariff, (ii) the
Eligible Customer and the Transmission Provider complete the
technical arrangements set forth in Sections 41.3 and 41.4, (iii)
the Eligible Customer executes a Service Agreement pursuant
to Attachment B for service under Part VI of this Tariff or
requests in writing that the Transmission Provider file a proposed
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unexecuted Service Agreement with the Commission, and (iv) the
Eligible Customer executes a Network Operating Agreement in the
form of Exhibit H to this Tariff, or in any other form that is
mutually agreed to, with the Transmission Provider.
41.2 Application Procedures: A Non-Participant which is an Eligible
Customer requesting Regional Network Service under this Tariff
must submit an Application, with a deposit approximating the
charge for one month of service, to the Transmission Provider as
far as possible in advance of the month in which service is to
commence. Completed Applications for Regional Network Service
will be assigned a priority according to the date and time the
Application is received, with the earliest Application receiving
the highest priority. Applications should be submitted by
entering the information listed below on the NEPOOL OASIS to the
extent feasible. Prior to implementation of the NEPOOL OASIS, a
Completed Application may be submitted by (i)
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transmitting the required information to the System Operator by
telefax, or (ii) providing the information by telephone over the
System Operator's time recorded telephone line. Each of these
methods will provide a time-stamped record for establishing the
service priority of the Application. A Completed Application
shall provide all of the information included in 18 CFR
<section>2.20 including but not limited to the following:
(i) The identity, address, telephone number and facsimile
number of the party requesting service;
(ii) A statement that the party requesting service is, or will
be upon commencement of service, an Eligible Customer
under this Tariff;
(iii) A description of the Network Load at each delivery point.
This description should separately identify and provide
the Eligible Customer's best estimate of the total loads
to be served at each transmission voltage level, and the
loads to be served from each Transmission Provider
substation at the same transmission voltage level. The
description should include a ten year forecast of summer
and winter load resource requirements beginning with the
first year after the service is scheduled to commence;
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(iv) The amount and location of any interruptible loads
included in the Network Load. This shall include the
summer and winter capacity requirements for each
interruptible load (had such load not been interruptible),
that portion of the load subject to Interruption, the
conditions under which an Interruption can be implemented
and any limitations on the amount and frequency of
Interruptions. An Eligible Customer should identify the
amount of interruptible customer load (if any) included in
the ten year load forecast provided in response to (iii)
above;
(v) A description of Network Resources (current and ten-year
projection), which shall include, for each Network
Resource:
- Unit size and amount of capacity from that unit to
be designated as Network Resource
- VAR capability (both leading and lagging) of all
generators
- Operating restrictions
- Any periods of restricted operations
throughout the year
- Maintenance schedules
- Minimum loading level of unit
- Normal operating level of unit
- Any must-run unit designations required
for system reliability or contract
reasons
- Approximate variable generating cost ($/MWH) for
redispatch computations
- Arrangements governing sale and delivery of power
to third parties from generating facilities
located in the Transmission Provider Control Area,
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where only a portion of unit output is designated
as a Network Resource
- Description of purchased power designated as a
Network Resource including source of supply,
Control Area location, transmission arrangements
and delivery point(s) to the Transmission
Provider's Transmission System;
(vi) Description of Eligible Customer's transmission system:
- Load flow and stability data, such as real and
reactive parts of the load, lines, transformers,
reactive devices and load type, including normal
and emergency ratings of all transmission
equipment in a load flow format compatible with
that used by the Transmission Provider
- Operating restrictions needed for reliability
- Operating guides employed by system operators
- Contractual restrictions or committed uses of the
Eligible Customer's transmission system, other
than the Eligible Customer's Network Loads and
Resources
- Location of Network Resources described in
subsection (v) above
- ten year projection of system expansions or
upgrades
- Transmission System maps that include any proposed
expansions or upgrades
- Thermal ratings of Eligible Customer's Control
Area ties with other Control Areas; and
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(vii) Service Commencement Date and the term of the requested
Network Integration Transmission Service. The minimum
term for Network Integration Transmission Service is one
year.
Unless the Parties agree to a different time frame, the System
Operator must acknowledge the request within ten days of receipt.
The acknowledgment must include a date by which a response,
including a Service Agreement, will be sent to the Eligible
Customer. If an Application fails to meet the requirements of
this section, the System Operator shall notify the Eligible
Customer requesting service within fifteen days of receipt and
specify the reasons for such failure. Wherever possible, the
System Operator will attempt to remedy deficiencies in the
Application through informal communications with the Eligible
Customer. If such efforts are unsuccessful, the System Operator
shall return the Application without prejudice to the Eligible
Customer, who may thereafter file a new or revised Application
that fully complies with the requirements of
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this section. The Eligible Customer will be assigned a new
priority consistent with the date of the new or revised
Application. The System Operator shall treat this information
consistent with the standards of conduct contained in Part 37 of
the Commission's regulations.
41.3 Technical Arrangements to be Completed Prior to Commencement of
Service: Network Integration Transmission Service as part of
Regional Network Service shall not commence until the Participants
and the Network Customer, or a third party, have completed
installation of all equipment specified under a Network Operating
Agreement consistent with Good Utility Practice and any
additional requirements reasonably and consistently imposed to
ensure the reliable operation of the NEPOOL Transmission System.
The Participants shall exercise reasonable efforts, in
coordination with the Network Customer, to complete such
arrangements as soon
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as practicable taking into consideration the Service Commencement
Date.
41.4 Network Customer Facilities: The provision of Network Integration
Transmission Service shall be conditioned upon the Network
Customer's constructing, maintaining and operating the facilities
on its side of each delivery point or interconnection necessary to
reliably deliver capacity and energy from the NEPOOL Transmission
System to the Network Customer. The Network Customer shall be
solely responsible for constructing or installing and operating
and maintaining all facilities on the Network Customer's side of
each such delivery point or interconnection.
41.5 Filing of Service Agreement: The System Operator will file
Service Agreements with the Commission in compliance with
applicable Commission regulations.
42 Network Resources
42.1 Designation of Network Resources: Network Resources shall include
all generation owned or purchased by the
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Network Customer designated to serve Network Load under this
Tariff. Network Resources may not include resources, or any
portion thereof, that are committed for sale to non-designated
third party load or otherwise cannot be called upon to meet the
Network Customer's Network Load on a non-interruptible basis. Any
owned or purchased resources that were serving the Network
Customer's loads under firm agreements entered into on or before
the Service Commencement Date shall initially be designated as
Network Resources until the Network Customer terminates the
designation of such resources.
42.2 Designation of New Network Resources: The Network Customer may
designate a new Network Resource by providing the System Operator
with as much advance notice as practicable. A designation of a
new Network Resource must be made by a request for modification of
service pursuant to an Application under Section 41.
42.3 Termination of Network Resources: The Network Customer may
terminate the designation of all or part of a
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generating resource as a Network Resource at any time but should
provide notification to the System Operator as soon as reasonably
practicable.
42.4 Operation of Network Resources: The Network Customer shall not
operate any of its designated Network Resources which are not
subject to Central Dispatch by NEPOOL, such that the output of
those facilities exceeds its designated Network Load plus losses.
42.5 Network Customer Redispatch Obligation: As a condition to
receiving Network Integration Transmission Service, the Network
Customer agrees to redispatch its Network Resources as requested
by the System Operator pursuant to Section 45.2. To the extent
practical, the redispatch of resources pursuant to this
section shall be on a least cost, non-discriminatory basis between
all Network Customers, and the Participants.
42.6 Transmission Arrangements for Network Resources Not Physically
Interconnected With The NEPOOL Transmission System: The Network
Customer shall be responsible for
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any arrangements necessary to deliver capacity and energy from a
Network Resource not physically interconnected with the NEPOOL
Transmission System. The System Operator will undertake
reasonable efforts to assist the Network Customer in obtaining
such arrangements, including without limitation, providing
any information or data required by such other entity pursuant to
Good Utility Practice.
42.7 Limitation on Designation of Network Resources: The Network
Customer must demonstrate that it owns or has committed to
purchase generation pursuant to an executed contract in order to
designate a generating resource as a Network Resource.
Alternatively, the Network Customer may establish that execution
of a contract is contingent upon the availability of transmission
service under Part II of this Tariff.
42.8 Use of Interface Capacity by the Network Customer: There is no
limitation upon a Network Customer's use of the NEPOOL
Transmission System at any particular
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interface to integrate the Network Customer's Network Resources
(or substitute economy purchases) with its Network Loads.
However, a Network Customer's use of the NEPOOL total interface
capacity with other transmission systems may not exceed the
Network Customer's Load Ratio Share.
43 Designation of Network Load
43.1 Network Load: The Network Customer must designate the individual
Network Loads on whose behalf the Participants will provide
through NEPOOL Network Integration Transmission Service. The
Network Loads shall be specified in the Service Agreement.
43.2 New Network Loads Connected With the NEPOOL Transmission System:
The Network Customer shall provide the System Operator with as
much advance notice as reasonably practicable of the designation
of new Network Load that will be added to the NEPOOL Transmission
System. A designation of new Network Load must be made through a
modification of service pursuant to a new Application.
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The Participants will use due diligence to install or cause to be
installed any transmission facilities required to interconnect a
new Network Load designated by the Network Customer. The costs of
new facilities required to interconnect a new Network Load shall
be determined in accordance with the procedures provided in
Section 44.4 and shall be charged to the Network Customer in
accordance with Commission policies.
43.3 Network Load Not Physically Interconnected with the NEPOOL
Transmission System: This section applies to both initial
designation pursuant to Section 43.1 and the subsequent addition
of new Network Load not physically interconnected with the NEPOOL
Transmission System. To the extent that the Network Customer
desires to obtain transmission service for a load outside the
NEPOOL Transmission System, the Network Customer shall have the
option of (1) electing to include the entire load as Network Load
for all purposes under Part VI of this Tariff and designating
Network Resources in connection
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Original Sheet No. 154
with such additional Network Load, or (2) excluding that entire
load from its Network Load. To the extent that the Network
Customer gives notice of its intent to add a new Network Load as
part of its Network Load pursuant to this section the request must
be made through a modification of service pursuant to a new
Application, and shall be available only so long as a scheduling
and interconnection agreement acceptable to the System Operator
shall be required to be in effect with the Control Area in which
the load is located. Charges for such portion of the service
shall be based on the Through or Out Service rate applied to
the amount reserved for the Network Load which is not physically
interconnected with the NEPOOL Transmission System.
43.4 New Interconnection Points: To the extent the Network Customer
desires to add a new Delivery Point or interconnection point
between the NEPOOL Transmission System and a Network Load, the
Network Customer shall
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provide the System Operator with as much advance notice as
reasonably practicable.
43.5 Changes in Service Requests: Under no circumstances shall the
Network Customer's decision to cancel or delay a requested change
in Network Integration Transmission Service (the addition of a new
Network Resource or designation of a new Network Load) in any way
relieve the Network Customer of its obligation to pay the costs of
transmission facilities constructed by or for the Participants
and charged to the Network Customer as reflected in the Service
Agreement. However, the System Operator must treat any requested
change in Network Integration Transmission Service in a non-
discriminatory manner.
43.6 Annual Load and Resource Information Updates: The Network Customer
shall provide the System Operator with annual updates of Network
Load and Network Resource forecasts consistent with those included
in its Application under Part VI of this Tariff. The Network
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Original Sheet No. 156
Customer also shall provide the System Operator with timely
written notice of material changes in any other information
provided in its Application relating to the Network Customer's
Network Load, Network Resources, its transmission system or other
aspects of its facilities or operations affecting the
Participants' ability to provide reliable service.
44 Additional Study Procedures For Network Integration Transmission Service
Requests
44.1 Notice of Need for System Impact Study: After receiving a request
for service, the System Operator shall review the effect of the
requested service on the reliability requirements to meet existing
and pending obligations of the Participant(s) and on the
obligations of the particular Participant(s) whose PTF facilities
will be impacted by the proposed service and shall determine on a
non-discriminatory basis whether a System Impact Study is needed.
A description of the methodology for completing a System Impact
Study is provided in
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Attachment D. If the System Operator determines that a System
Impact Study is necessary to accommodate the requested service, it
shall as soon as practicable inform the Eligible Customer and any
affected Participant(s) if the System Impact Study is to be
performed by the Participant(s). If the likely result of the
study is that a Direct Assignment Facility will be required, the
study shall be performed by the affected Participant(s), subject
to review by the System Operator. In such cases, the System
Operator shall within thirty days of receipt of a Completed
Application, tender a System Impact Study agreement in the form of
Attachment I to this Tariff, or in any other form that is mutually
agreed to, pursuant to which the Eligible Customer shall agree to
reimburse the Transmission Provider for performing the required
System Impact Study. For a service request to remain a
Completed Application, the Eligible Customer shall execute a
System Impact Study agreement and return it to
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the Transmission Provider within fifteen days. If the Eligible
Customer elects not to execute a System Impact Study agreement,
its Application shall be deemed withdrawn and its deposit (less
the reasonable Administrative Costs incurred by the System
Operator and any affected Participant(s)) shall be returned with
Interest.
44.2 System Impact Study Agreement and Cost Reimbursement:
(i) The System Impact Study agreement, whether in the form
detailed in Attachment I or in any other form that is
mutually agreed to, will clearly specify the maximum
charge, based on the System Operator's actual estimate of
the actual cost, and time for completion of the System
Impact Study. The actual charge shall not exceed the
actual cost of the study. In performing the System Impact
Study, the System Operator and the affected Participants
shall rely, to the extent reasonably practicable, on
existing transmission planning studies. The
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Eligible Customer will not be assessed a charge for such
existing studies; however, the Eligible Customer will be
responsible for charges associated with any modifications
to existing planning studies that are reasonably
necessary to evaluate the impact of the Eligible
Customer's request for service on the NEPOOL Transmission
System.
(ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation,
a single System Impact Study is sufficient for the System
Operator and the affected Participants to accommodate the
service requests, the costs of that study shall be pro-
rated among the Eligible Customers.
(iii)For System Impact Studies that the System Operator and any
affected Participants conduct on behalf of the Participants, the
Participants will record the cost of the System Impact Studies
pursuant to Section 8.5.
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44.3 System Impact Study Procedures: Upon receipt of an executed System
Impact Study agreement, the System Operator and any affected
Participants will use due diligence to complete the required
System Impact Study within a 60 day period. The System Impact
Study shall identify any system constraints, redispatch
options, or the need for Network Upgrades to provide the requested
service. In the event that the System Operator and any affected
Participants are unable to complete the required System Impact
Study within such time period, the System Operator shall so notify
the Eligible Customer and provide an estimated completion date
along with an explanation of the reasons why additional time is
required to complete the required studies and an estimate of any
increase in cost which will result from the delay. A copy of the
completed System Impact Study and related work papers shall be
made available to the Eligible Customer. The System Operator will
use the same due diligence in completing the System Impact
Study
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for an Eligible Customer as it uses when completing studies for
itself. The System Operator shall notify the Eligible Customer
immediately upon completion of the System Impact Study if the
NEPOOL Transmission System will be adequate to accommodate all or
part of a request for service or that no costs are likely to be
incurred for new transmission facilities or upgrades. In order
for a request to remain a Completed Application, within fifteen
days of completion of the System Impact Study the Eligible
Customer must execute a Service Agreement or request the filing of
an unexecuted Service Agreement, or the Application shall be
deemed terminated and withdrawn.
44.4 Facilities Study Procedures: If a System Impact Study indicates
that additions or upgrades to the NEPOOL Transmission System are
needed to supply the Eligible Customer's service request, the
System Operator, within thirty days of the completion of the
System Impact Study, shall tender to the Eligible Customer
a
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Facilities Study agreement in the form of Exhibit J to this
Tariff, or in any other form that is mutually agreed to, pursuant
to which the Eligible Customer shall agree to reimburse the System
Operator and any affected Participants for performing the required
Facilities Study. For a service request to remain a Completed
Application, the Eligible Customer shall execute the Facilities
Study agreement and return it to the Transmission Provider within
fifteen days. If the Eligible Customer elects not to execute a
Facilities Study agreement, its Application shall be deemed
withdrawn and its deposit (less the reasonable Administrative
Costs incurred by the System Operator and any affected
Participants) shall be returned with Interest. Upon receipt of an
executed Facilities Study agreement, the System Operator and any
affected Participants will use due diligence to complete the
required Facilities Study within a sixty day period. If the
System Operator and any affected Participants are
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unable to complete the Facilities Study in the allotted time
period, the System Operator shall notify the Eligible Customer and
provide an estimate of the time needed to reach a final
determination along with an explanation of the reasons that
additional time is required to complete the study. When
completed, the Facilities Study will include a good faith estimate
of (i) the cost of Direct Assignment Facilities to be charged to
the Eligible Customer, (ii) the Eligible Customer's appropriate
share of the cost of any required Network Upgrades, and (iii) the
time required to complete such construction and initiate the
requested service. The Eligible Customer shall provide the System
Operator with a letter of credit or other reasonable form of
security acceptable to the System Operator equivalent to
the costs of new facilities or upgrades consistent with commercial
practices as established by the Uniform Commercial Code. The
Eligible Customer shall have thirty days to execute a Service
Agreement or
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request the filing of an unexecuted Service Agreement and provide
the required letter of credit or other form of security or the
request no longer will be a Completed Application and shall be
deemed terminated and withdrawn.
45 Load Shedding and Curtailments
45.1 Procedures: Prior to the Service Commencement Date, the System
Operator and the Network Customer shall establish Load Shedding
and Curtailment procedures pursuant to the Network Operating
Agreement with the objective of responding to contingencies on the
NEPOOL Transmission System. The Parties will implement
such programs during any period when the System Operator
determines that a system contingency exists and such procedures
are necessary to alleviate such contingency. The System Operator
will notify all affected Network Customers in a timely manner of
any scheduled Curtailment.
45.2 Transmission Constraints: During any period when the System
Operator determines that a transmission
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constraint exists on the NEPOOL Transmission System, and such
constraint may impair the reliability of the NEPOOL System, the
System Operator will take whatever actions, consistent with Good
Utility Practice, that are reasonably necessary to maintain the
reliability of the system. To the extent the System Operator
determines that the reliability of the System can be maintained by
redispatching resources, the System Operator will initiate
procedures pursuant to a Network Operating Agreement to redispatch
all Network Resources and the Participants' own resources on a
least-cost basis without regard to the ownership of such
resources. Any redispatch under this section may not unduly
discriminate between the Participants' use of the NEPOOL
Transmission System on behalf of their Native Load Customers and
any Network Customer's use of the Transmission System to serve its
designated Network Load.
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45.3 Cost Responsibility for Relieving Transmission Constraints: To the
extent not otherwise covered under the Agreement, whenever the
System Operator implements least-cost redispatch procedures in
response to a transmission constraint, the Participants and
Network Customers will each bear a proportionate share of the
total redispatch cost based on their respective Load Ratio Shares.
45.4 Curtailments of Scheduled Deliveries: If a transmission
constraint on the NEPOOL Transmission System cannot be relieved
through the implementation of least-cost redispatch procedures and
the System Operator determines that it is necessary to Curtail
scheduled deliveries, the Parties shall Curtail such schedules
in accordance with a Network Operating Agreement.
45.5 Allocation of Curtailments: The System Operator shall on a non-
discriminatory basis, Curtail the transaction(s) that effectively
relieve the constraint. However, to the extent practicable and
consistent with
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Good Utility Practice, any Curtailment will be shared by the
Participants and the Network Customer in proportion to their
respective Load Ratio Shares. The System Operator shall not
direct the Network Customer to Curtail schedules to an extent
greater than the System Operator would Curtail the Participants'
schedules under similar circumstances.
45.6 Load Shedding: To the extent that a system contingency exists on
the NEPOOL Transmission System and the System Operator determines
that it is necessary for the Participants and the Network Customer
to shed load, the Parties shall shed load in accordance with
previously established procedures under the Network Operating
Agreement, or in accordance with other mutually agreed-to
provisions.
45.7 System Reliability: Notwithstanding any other provisions of this
Tariff, the System Operator reserves the right, consistent with
Good Utility Practice and on a not unduly discriminatory basis, to
Curtail Network
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Integration Transmission Service without liability on the part of
the System Operator or the Participants for the purpose of making
necessary adjustments to, changes in, or repairs on the
Participants' lines, substations and facilities, and in
cases where the continuance of Network Integration Transmission
Service would endanger persons or property. In the event of any
adverse condition(s) or disturbance(s) on the NEPOOL Transmission
System or on any other system(s) directly or indirectly
interconnected with the NEPOOL Transmission System, the
System Operator, consistent with Good Utility Practice, also may
Curtail Network Integration Transmission Service in order to (i)
limit the extent or damage of the adverse condition(s) or
disturbance(s), (ii) prevent damage to generating or transmission
facilities, or (iii) expedite restoration of service. The
System Operator will give the Network Customer as much advance
notice as is practicable in the event of such Curtailment. Any
Curtailment of Network
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Integration Transmission Service will be not unduly discriminatory
relative to the Participants' use of the Transmission System on
behalf of their Native Load Customers. The Network Operating
Agreement shall specify the rate treatment and all related terms
and conditions applicable in the event that the Network
Customer fails to respond to established Load Shedding and
Curtailment procedures.
46 Rates and Charges
The Network Customer shall pay the Transmission Provider for any Direct
Assignment Facilities, Ancillary Services, and applicable study costs,
consistent with Commission policy, along with the charge for Regional
Network Service provided in Part II of this Tariff.
46.1 Determination of Network Customer's Monthly Network Load: The
Network Customer's "Monthly Network Load" is its hourly load
(including its designated Network Load not physically
interconnected with the Transmission Provider under Section 43.3)
coincident with the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 170
coincident aggregate load of the Participants and other Network
Customers served in each Local Network in the hour in which the
coincident load is at its maximum for the month ("Monthly Peak").
46.2 Redispatch Charge: To the extent not otherwise covered under the
Agreement, the Network Customer shall pay a Load Ratio Share of
any redispatch costs allocated between the Network Customer and
the Participants pursuant to Section 45. To the extent that the
Participants incur an obligation to the Network Customer for
redispatch costs in accordance with Section 45, such amounts shall
be credited against the Network Customer's bill for the applicable
month.
47 Operating Arrangements
47.1 Operation under The Network Operating Agreement: The Network
Customer shall plan, construct, operate and maintain its
facilities in accordance with Good Utility Practice and in
conformance with the Network Operating Agreement which shall be in
the form of Exhibit H to
NEPOOL Open Access Transmission Tariff
Original Sheet No. 171
this Tariff, or in any other form that is mutually agreed to.
47.2 Network Operating Agreement: The terms and conditions under which
the Network Customer shall operate its facilities and the
technical and operational matters associated with the
implementation of Part VI of the Tariff shall be specified in the
Network Operating Agreement. The Network Operating Agreement
shall provide for the Parties to (i) operate and maintain
equipment necessary for integrating the Network Customer within
the NEPOOL Transmission System (including, but not limited to,
remote terminal units, metering, communications equipment and
relaying equipment), (ii) transfer data between the System
Operator and the Network Customer (including, but not limited to,
heat rates and operational characteristics of Network Resources,
generation schedules for units outside the NEPOOL Transmission
System, interchange schedules, unit outputs for redispatch
required under Section 45,
NEPOOL Open Access Transmission Tariff
Original Sheet No. 172
voltage schedules, loss factors and other real time data), (iii)
use software programs required for data links and constraint
dispatching, (iv) exchange data on forecasted loads and resources
necessary for long-term planning, and (v) address any other
technical and operational considerations required for
implementation of Part VI of this Tariff, including scheduling
protocols. The Network Operating Agreement will recognize that
the Network Customer shall either (i) operate as a Control Area
under applicable guidelines of the North American Electric
Reliability Council (NERC) and the Northeast Power Coordinating
Council, (ii) satisfy its Control Area requirements, including all
necessary Ancillary Services, by contracting with the System
Operator and the Participants, or (iii) satisfy its Control Area
requirements, including all necessary Ancillary Services, by
contracting with another Entity, consistent with Good Utility
Practice, which satisfies NERC and the NPCC requirements. The
System Operator
NEPOOL Open Access Transmission Tariff
Original Sheet No. 173
shall not unreasonably refuse to accept contractual arrangements
with another entity for Ancillary Services.
47.3 Network Operating Committee: A Network Operating Committee
(Committee) shall be established to coordinate operating criteria
for the Parties' respective responsibilities under the Network
Operating Agreement, where the Network Customer is not a
Participant. Each Network Customer shall be entitled to have at
least one representative on the Committee. The Committee shall
meet from time to time as need requires, but no less than once
each calendar year.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 174
SCHEDULE 1
Scheduling, System Control and Dispatch Service
Scheduling, System Control and Dispatch Service is the service required
to schedule at the pool level the movement of power through, out of, within, or
into the NEPOOL Control Area. It is anticipated that local level service would
be provided under the Local Network Service tariffs of the individual
Transmission Providers. For transmission service under this Tariff, this
Ancillary Service can be provided only by the System Operator and the
Transmission Customer must purchase this service from the System Operator.
Charges for Scheduling, System Control and Dispatch Service are to be based on
the expenses incurred by the System Operator, the satellite dispatch centers
and the Participants to provide these services. A surcharge for these services
will be added to the Through or Out Service rate. Transmission Customers
taking Regional Network Service and Local Network Service will have a similar
surcharge added to their Local Network Service rates pursuant to their
individual tariffs.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 175
The charges for service in conjunction with Regional Network Service may
be recovered as described above for an initial period not exceeding six months
and shall be superseded after such period by a rate under this Schedule to be
determined and filed with the Commission which shall be cost-based.
The System Operator expenses will be based on the functions required to
provide these services and include, but are not limited to:
o Processing and implementation of requests for service, including
support of the NEPOOL OASIS node;
o Coordination of transmission system operation and implementation
of necessary control actions by the System Operator and support
for these functions;
o Billing associated with transmission services provided under this
Tariff;
o Transmission system planning which supports this service;
o Administrative costs associated with the aforementioned
functions.
The satellite dispatch center expenses and the Participant expenses will
in each case be an allocated portion of dispatch center expense for the PTF
dispatch functions performed.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 176
Initially, 50% of the costs of the satellite dispatch centers and 0% of the
scheduling, system control and dispatch centers of Participants will be
allocated to PTF dispatch functions. This cost basis shall apply for a period
not exceeding six months and shall be superseded after such period by a rate
under this Schedule to be determined and filed with the Commission which shall
be cost-based.
This surcharge shall be determined for the same period on which the PTF
rate is based. The rate surcharge for each year is the amount derived by
dividing the total annual expenses for providing the service by the sum of the
average of the coincident Monthly Peaks (as defined in Section 46.1) of all
Local Networks for the same calendar year.
RATE SURCHARGE CALCULATION
FOR YEAR ONE
Total Allocated Expenses $11,720,093
Sum of the coincident Monthly Peaks
of all Participants 17,823,928kW
Rate (Expenses/sum of Pks) $0.658
NEPOOL Open Access Transmission Tariff
Original Sheet No. 177
SCHEDULE 2
Reactive Supply and Voltage Control from
Generation Sources Service
In order to maintain transmission voltages on the NEPOOL Transmission
System within acceptable limits, generation facilities are operated to produce
(or absorb) reactive power. Thus, Reactive Supply and Voltage Control from
Generation Sources Service must be provided for each transaction on the NEPOOL
Transmission System. The amount of Reactive Supply and Voltage Control from
Generation Sources Service that must be supplied with respect to a Transmission
Customer's transaction will be determined based on the reactive power support
necessary to maintain transmission voltages within limits that are generally
accepted in the region and consistently adhered to by the Participants.
Reactive Supply and Voltage Control from Generation Sources Service is to
be provided through the Participants and the System Operator and the
Transmission Customer must purchase this service from the Participants through
the System Operator. The charges
NEPOOL Open Access Transmission Tariff
Original Sheet No. 178
for such service for an initial period not exceeding six months shall be $0 per
Kilowatt and shall be superseded after such period by a rate to be determined
and filed with the Commission which shall be cost-based.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 179
SCHEDULE 3
Regulation and Frequency Response Service
(Automatic Generator Control)
Regulation and Frequency Response Service (Automatic Generator Control)
is necessary to provide for continuous balancing of resources (generation and
interchange) with Load, and for maintaining scheduled interconnection frequency
at sixty cycles per second (60 Hz). Regulation and Frequency Response Service
(Automatic Generation Control) is accomplished by committing on-line generation
whose output is raised or lowered (predominantly through the use of automatic
generating control equipment) as necessary to follow the moment-by-moment
changes in Load. The obligation to maintain this balance between resources and
Load lies with the System Operator and this service will be available to all
Participants and other entities that serve Load within the NEPOOL Control Area
which enter into separate agreements with NEPOOL through Interchange
Transactions pursuant to the Agreement which result from NEPOOL central
dispatch. The Transmission Customer must either take this service from the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 180
System Operator or through the Interchange or make alternative comparable
arrangements to satisfy its Regulation and Frequency Response Service
(Automatic Generator Control or AGC) obligation.
As of December 1, 1996, charges for this Service are determined under the
Prior Agreement as follows:
Payments and reimbursements under the current AGC Billing System fall
into two categories. First, those Participants who have either not made
the appropriate installation arrangements, or who have responsibility for
units that have not met the minimum AGC availability criterion, are
required to pay into a Fixed Cost fund. The dollars collected in
the fund are paid to lead Participants having AGC capability in
accordance with a formula which provides for distribution of the Fixed
Cost Fund. The billing for fixed costs is done on a calendar year basis,
by April 1 of the following year.
Second, the AGC Billing system compensates the lead Participants for the
loss of efficiency and increased maintenance costs that are experienced
as a result of AGC operation of their units. An amount representing an
estimate
NEPOOL Open Access Transmission Tariff
Original Sheet No. 181
of the total increased hourly operating costs is collected from all
Participants pro rata to their hourly load. These collected funds are
distributed to the lead Participants who incurred the costs. Billing for
hourly costs is done on a monthly basis.
As of the Second Effective Date, charges for this Service will be
determined on the basis of Bid Prices submitted by the Participants in
accordance with Section 14 of the Agreement.
The transmission service required with respect to Regulation and
Frequency Response Service (Automatic Generator Control) will be paid for as
part of Regional Network Service by all Participants and other entities serving
Load in the NEPOOL Control Area. The charge for Regional Network Service is
specified in Schedule 9.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 182
SCHEDULE 4
Energy Imbalance Service
Energy Imbalance Service is the service provided when a difference occurs
between the scheduled and the actual delivery of energy to a Load located
within the NEPOOL Control Area during a single hour. This service will be
available to all Participants and other entities that serve Load within the
NEPOOL Control Area which enter into separate agreements with NEPOOL through
Interchange Transactions resulting from NEPOOL central dispatch at prices
which will be determined in accordance with Section 12 of the Prior Agreement
until the Second Effective Date, and which will be determined in accordance
with Section 14 of the Agreement thereafter. The Transmission Customer may
either supply its Load from its own resources or through bilateral transactions
or obtain the service through Interchange Transactions. The transmission
service required with respect to Interchange Transactions will be furnished as
part of Regional Network Service to all Participants and other entities serving
Load in the NEPOOL Control Area. The charge for Regional Network Service is
specified in Schedule 9.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 183
SCHEDULE 5
Operating Reserve - 10-Minute Spinning Reserve Service
10-Minute Spinning Reserve Service is a service needed to serve load
immediately in the event of a system contingency. This service will be
available to all Participants and other entities that serve load within the
NEPOOL Control Area which enter into separate agreements with NEPOOL through
Interchange Transactions resulting from NEPOOL central dispatch. The
Transmission Customer may either supply this service with its own resources or
through bilateral transactions or obtain the service through Interchange
Transactions on terms determined until the Second Effective Date in accordance
with Section 12 of the Prior Agreement, and on terms determined thereafter in
accordance with Sections 14.4, 14.5 and 14.9 of the Agreement.
Under the Prior Agreement arrangements which will remain in effect until
the Second Effective Date, operating reserve is provided through central
dispatch and the after-the-fact own load energy billing arrangements. Prior
Agreement, <section><section>12.5 - 12.8. Participants that are deemed to
carry operating reserve in any
NEPOOL Open Access Transmission Tariff
Original Sheet No. 184
hour are entitled to share in distributions each month from the Pool Savings
Fund. Prior Agreement <section><section>14.1(e)(viii)(B) and 14.8(d). These
arrangements are equally applicable to 10-Minute Spinning Reserve Service, 10-
Minute Non-Spinning Reserve Service and 30-Minute Reserve Service. Prior
Agreement, <section><section>12.5, 14.1(e)(viii)(B) and 14.8(d).
Under Sections 14.4, 14.5 and 14.9 of the Agreement, as it will be in
effect after the Second Effective Date, the price to be paid for 10-Minute Non-
Spinning Reserve Service or 30-Minute Operating Reserve Service received in any
hour will be the Operating Reserve Clearing Price for the hour for that
category of reserve service, as determined on the basis of bid prices to
provide the service. Agreement, <section>14.9(a) and (b). After the Third
Effective Date, the price to be paid for 10-Minute Spinning Reserve Service
will be determined on the same basis. Agreement, <section>14.9(a) and (c).
During the period from the Second Effective Date until the Third Effective
Date, the price for 10-Minute Spinning Reserve Service will be equal to the
"Lost Opportunity Clearing Price" for the hour and the lost opportunity costs,
if
NEPOOL Open Access Transmission Tariff
Original Sheet No. 185
any, for the generating units which supply the service, as determined in
accordance with Section 14.9 of the Agreement. Agreement, <section>14.9(c) and
(d).
The Transmission Service required with respect to Interchange
Transactions will be furnished as part of Regional Network Service to all
Participants and other entities serving Load in the NEPOOL Control Area. The
charge for Regional Network Service is determined in accordance with Section 16
of the Tariff and Schedule 9.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 186
SCHEDULE 6
Operating Reserve - 10-Minute Non-Spinning Reserve Service
10-Minute Non-Spinning Reserve Service is a service needed to serve Load
in the event of a system contingency. This service will available to all
Participants and other entities that serve Load within the NEPOOL Control Area
which enter into separate agreements with NEPOOL through Interchange
Transactions resulting from NEPOOL central dispatch. The Transmission Customer
may either supply this service with its own resources or through bilateral
transactions or obtain the service through Interchange Transactions on terms
determined until the Second Effective Date in accordance with Section 12 of the
Prior Agreement, and on terms determined thereafter in accordance with Sections
14.4, 14.5 and 14.9 of the Agreement.
Under the Prior Agreement arrangements which will remain in effect until
the Second Effective Date, operating reserve is provided through central
dispatch and the after-the-fact own load energy billing arrangements. Prior
Agreement, <section><section>12.5 - 12.8. Participants that are deemed to
carry operating reserve in any
NEPOOL Open Access Transmission Tariff
Original Sheet No. 187
hour are entitled to share in distributions each month from the Pool Savings
Fund. Prior Agreement <section><section>14.1(e)(viii)(B) and 14.8(d). These
arrangements are equally applicable to 10-Minute Spinning Reserve Service, 10-
Minute Non-Spinning Reserve Service and 30-Minute Reserve Service. Prior
Agreement, <section><section>12.5, 14.1(e)(viii)(B) and 14.8(d).
Under Sections 14.4, 14.5 and 14.9 of the Agreement, as it will be in
effect after the Second Effective Date, the price to be paid for 10-Minute Non-
Spinning Reserve Service or 30-Minute Operating Reserve Service received in any
hour will be the Operating Reserve Clearing Price for the hour for that
category of reserve service, as determined on the basis of bid prices to
provide the service. Agreement, <section>14.9(a) and (b). After the Third
Effective Date, the price to be paid for 10-Minute Spinning Reserve Service
will be determined on the same basis. Agreement, <section>14.9(a) and (c).
During the period from the Second Effective Date until the Third Effective
Date, the price for 10-Minute Spinning Reserve Service will be equal to the
"Lost Opportunity Clearing Price" for the hour and the lost opportunity costs,
if
NEPOOL Open Access Transmission Tariff
Original Sheet No. 188
any, for the generating units which supply the service, as determined in
accordance with Section 14.9 of the Agreement. Agreement, <section>14.9(c) and
(d).
The Transmission Service required with respect to Interchange
Transactions will be furnished as part of Regional Network Service to all
Participants and other entities serving Load in the NEPOOL Control Area. The
charge for Regional Network Service is determined in accordance with Section 16
of the Tariff and Schedule 9.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 189
SCHEDULE 7
Operating Reserve - 30-Minute Reserve Service
30-Minute Reserve Service is a service needed to serve Load in the event
of a system contingency. This service will be available to all Participants
and other entities that serve Load within the NEPOOL Control Area which enter
into separate agreements with NEPOOL through Interchange Transactions resulting
from NEPOOL central dispatch. The Transmission Customer may either supply this
service with its own resources or through bilateral transactions or obtain
the service through Interchange Transactions on terms determined until the
Second Effective Date in accordance with Section 12 of the Prior Agreement, and
on terms determined thereafter in accordance with Sections 14.4, 14.5 and 14.9
of the Agreement.
Under the Prior Agreement arrangements which will remain in effect until
the Second Effective Date, operating reserve is provided through central
dispatch and the after-the-fact own load energy billing arrangements. Prior
Agreement, <section><section>12.5 - 12.8. Participants that are deemed to
carry operating reserve in any
NEPOOL Open Access Transmission Tariff
Original Sheet No. 190
hour are entitled to share in distributions each month from the Pool Savings
Fund. Prior Agreement <section><section>14.1(e)(viii)(B) and 14.8(d). These
arrangements are equally applicable to 10-Minute Spinning Reserve Service, 10-
Minute Non-Spinning Reserve Service and 30-Minute Reserve Service. Prior
Agreement, <section><section>12.5, 14.1(e)(viii)(B) and 14.8(d).
Under Sections 14.4, 14.5 and 14.9 of the Agreement, as it will be in
effect after the Second Effective Date, the price to be paid for 10-Minute Non-
Spinning Reserve Service or 30-Minute Operating Reserve Service received in any
hour will be the Operating Reserve Clearing Price for the hour for that
category of reserve service, as determined on the basis of bid prices to
provide the service. Agreement, <section>14.9(a) and (b). After the Third
Effective Date, the price to be paid for 10-Minute Spinning Reserve Service
will be determined on the same basis. Agreement, <section>14.9(a) and (c).
During the period from the Second Effective Date until the Third Effective
Date, the price for 10-Minute Spinning Reserve Service will be equal to the
"Lost Opportunity Clearing Price" for the hour and the lost opportunity costs,
if
NEPOOL Open Access Transmission Tariff
Original Sheet No. 191
any, for the generating units which supply the service, as determined in
accordance with Section 14.9 of the Agreement. Agreement, <section>14.9(c) and
(d).
The Transmission Service required with respect to Interchange
Transactions will be furnished as part of Regional Network Service to all
Participants and other entities serving Load in the NEPOOL Control Area. The
charge for Regional Network Service is determined in accordance with Section 16
of the Tariff and Schedule 9.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 192
SCHEDULE 8
Through or Out Service -
The Pool PTF Rate
(1) Except as otherwise provided in Section 19 of the Tariff, a Transmission
Customer shall pay to NEPOOL for firm or non-firm Through or Out Service
reserved for it in accordance with Section 19 of the Tariff on the basis of the
Pool PTF rate.
(2) The Pool PTF Rate in effect at any time shall be determined annually on
the basis of the information for the most recent calendar year contained in
Form 1 filings (or similar information on the books of Transmission Providers
that are not required to submit a Form 1 filing) and shall be changed annually
effective as of June 1 in each year. The Pool PTF rate shall be equal
to the sum for all Participants of Annual Transmission Revenue Requirements
determined in accordance with Attachment F divided by the sum of the coincident
Monthly Peaks (as defined in Section 46.1) of all Local Networks. The rate for
the period from the effective date of this Tariff until June 1, 1997 is
determined on the basis of the information for 1995 contained in Form 1 filings
NEPOOL Open Access Transmission Tariff
Original Sheet No. 193
(or similar information on the books of Transmission Providers that are not
required to submit a Form 1 filing) and is $15.61 per kilowatt year.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 194
SCHEDULE 9
Regional Network Service
(1) A Transmission Customer which serves Load in the NEPOOL Control Area shall
pay to NEPOOL each month for Regional Network Service the amount determined in
accordance with the following formula:
A = 1/12 (R {. }L)
in which
A = the amount to be paid
R = the Participant RNS Rate per Kilowatt for the current Year for the
Participant which owns the Local Network from which the Customer's
load is served
L = the Customer's Monthly Network Load for the month
Each Participant RNS Rate is to be determined in accordance with the remaining
provisions of this Schedule 9. The Participants intend that the rate will be
determined by looking separately at the costs associated with facilities which
are in service at December 31, 1996, and the costs associated with new
facilities which are placed in service after December 31, 1996. Costs of
new
NEPOOL Open Access Transmission Tariff
Original Sheet No. 195
facilities are to be shared regionally on a per Kilowatt basis in determining
the rates of each of the Participants with a Local Network.
Costs of existing facilities are to be determined separately for each
Participant and reflected in the rate for service to Transmission Customers
serving load in the Participant's Local Network. This is subject to a band
width which limits the variation of the Participant per Kilowatt cost from the
average per Kilowatt cost for all Participants to not less than 70%, or
more than 130%, of the average cost.
(2) The Pool RNS Rate per Kilowatt is $1 in Year One, $4 in Year Two, $7 in
Year Three, $10 in Year Four and $13 in Year Five and the period from the end
of Year Five to the next succeeding June 1, and is equal to the Pool PTF Rate
for each Year thereafter.
(3) The Participant RNS Rate for a Participant for a Year shall be a
percentage of the Pool RNS Rate for the year and shall be equal to the Pool RNS
Rate after the end of the transitional
NEPOOL Open Access Transmission Tariff
Original Sheet No. 196
period described in paragraph (4) of this Schedule. The percentage for each
Participant for each Year shall equal the percentage which the sum of (i) the
Participant's pre-1997 Participant RNS Rate and (ii) the post-1996 Pool PTF
Rate represents of (iii) the Pool PTF Rate for the Year.
(4) The pre-1997 Participant RNS Rate for each Participant shall be
determined by comparing its individual pre-1997 PTF Rate, for the most recent
calendar year for which information is available from Form 1 filings or
otherwise to the pre-1997 Pool PTF Rate for the same calendar year. If the
Participant's individual pre-1997 PTF Rate for a Year is less than the
pre-1997 Pool PTF Rate, its pre-1997 Participant RNS Rate for the Year shall be
the rate determined by reducing the pre-1997 Pool PTF Rate by the percentage
which the Participant's pre-1997 PTF Rate is less than the pre-1997 Pool PTF
Rate; provided that in no event shall its pre-1997 Participant RNS Rate be less
than 70% of the pre-1997 Pool PTF Rate, until the end of Year Five, and
thereafter shall be
NEPOOL Open Access Transmission Tariff
Original Sheet No. 197
. . . . {2} If the Participant's individual pre-1997 PTF Rate is greater than
the pre-1997 Pool PTF Rate, its pre-1997 Participant RNS Rate shall be the rate
determined by increasing the pre-1997 Pool PTF Rate by the percentage which its
pre-1997 Participant PTF Rate is greater than the pre-1997 Pool PTF Rate;
provided that in no event shall its pre-1997 Participant RNS Rate be
greater than 130% of the pre-1997 Pool PTF Rate until the end of Year Five, and
thereafter shall be . . . . {3} If for any Year the revenues to be received
from the payment by Participants or other Transmission Customers of their
respective applicable Participant RNS Rates will average more or less than the
Pool PTF Rate per Kilowatt for the Year, each Participant RNS Rate will
be increased or decreased, as appropriate, so that the revenues to be received
per Kilowatt per Year will equal the Pool PTF Rate per Kilowatt for the Year.
**FOOTNOTES**
{2} The sentence shall be completed in accordance with the 33rd Amendment.
{3} The sentence shall be completed in accordance with the 33rd Amendment.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 198
(5) The individual pre-1997 PTF Rate of a Participant which owns a Local
Network for a year is the amount derived annually by dividing its Annual
Transmission Revenue Requirements for the most recent calendar year for which
information is available from Form 1 filings (or similar information on the
books of Transmission Providers that are not required to submit a Form 1
filing) with respect to PTF placed in service before January 1, 1997, as
determined in accordance with Attachment F to this Tariff, by the average of
the Monthly Peaks (as adjusted for losses) for the Local Network for the twelve
months of the same calendar year.
(6) The pre-1997 Pool PTF Rate shall be determined in accordance with the
following formula:
R = ATRR
12CP
and the post-1996 Pool PTF Rate shall be determined in accordance with the
following formula:
R* = ATRR*
12CP
in which
NEPOOL Open Access Transmission Tariff
Original Sheet No. 199
R = the pre-1997 Pool PTF Rate
R* = the post-1996 Pool PTF Rate
ATRR = the aggregate of the Annual Transmission Revenue Requirements of
the Participants with respect to PTF placed in service before
January 1, 1997, as determined in accordance with Attachment F to
this Tariff.
ATRR* =the aggregate of the Annual Transmission Revenue Requirements of
the Participants with respect to PTF placed in service on or after
January 1, 1997, including upgrades, modifications or additions to
PTF placed in service before January 1, 1997, as determined in
accordance with Attachment F to this Tariff.
12CP = the average of the sum of the Monthly Peaks for all Local
Networks, as adjusted each month for NEPOOL losses, of all
Participants and any other entities serving load in the NEPOOL
Control Area for the twelve months of the calendar year on which
the rate is based.
(7) As used in this Schedule, "Monthly Peak" and "Monthly Network Load" each
has the meaning specified in Section 46.1 of this Tariff.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 200
(8) The individual Participant RNS Rates for the period starting the First
Effective Date and ending May 31, 1997 are as follows:
Bangor Hydro-Electric Company - $0.70
Boston Edison Company - $0.92
Central Maine Power Company - $1.06
Commonwealth Energy System Companies - $0.85
Eastern Utility Associates Companies - $0.73
New England Electric System Companies - $1.30
Northeast Utilities Companies - $0.83
The United Illuminating Company - $1.30
Vermont Utilities - $1.30
NEPOOL Open Access Transmission Tariff
Original Sheet No. 201
SCHEDULE 10
Tie Benefit Service
(1) A Transmission Customer shall pay to NEPOOL for each month for Tie Benefit
Service received by it in accordance with the following formula:
A = 1/12 (T {.} K)
in which:
A = the amount to be paid for each Kilowatt of Tie Benefit Service
received in the form of a reduction of is Installed Capability
Responsibility
T = $10 per Kilowatt of Tie Benefit Service received per year in Years
One to Five, inclusive, $4 per Kilowatt per year in Years Six and
Seven, $3 per Kilowatt per year in Years Eight and Nine and $2 per
Kilowatt per year in Year Ten.
K = the number of Kilowatts of Tie Benefit Service received for the
month, as determined in accordance with the definition of Tie
Benefit Service.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 202
SCHEDULE 11
Transition Payments
Transition Payments shall be made to NEPOOL by the Participants and Non-
Participants identified below, and distributed by NEPOOL to the other
Participants and Non-Participants identified below, in Years One through Five
in accordance with the following schedule in which amounts in parentheses
represent amounts to be paid and amounts not in parentheses represent
amounts to be received:
Participant Year
1 2 3 4 5
Boston Edison Co. (3,443,885) 417,243 616,469 205,412 (1,077,181)
Braintree 1,020,402 938,182 831,463 785,709 807,504
Hingham 410,141 373,626 326,838 304,136 308,166
Hull 103,450 93,434 80,725 74,009 73,955
Reading 956,845 870,604 760,262 706,005 714,008
Bangor Hydro Electric (94,438) 276,487 640,654 998,062 1,348,711
Commonwealth Energy Systems* (84,677) 233,062 336,257 387,867 328,635
Central Maine Power (1,433,565) (1,566,123) (1,724,110) (1,645,295) (1,425,034)
Eastern Utilities Associates (1,139,630) (783,772) (516,831) (339,100) (250,873)
Middleborough 236,313 192,475 160,926 141,715 134,886
Pascoag, RI 1,753 (134) (2,257) (4,614) (7,206)
Taunton 1,096,571 883,844 727,389 627,419 584,151
MMWEC (51,058) (163,395) (214,594) (204,655) (133,578)
NEES 942,957 (723,648) (249,193) 449,642 1,110,333
Ashburnham 4,210 (8,243) (17,386) (22,235) (22,938)
Boylston 3,359 (8,907) (18,039) (23,093) (24,209)
Danvers 68,190 (104,164) (231,141) (299,188) (310,331)
Georgetown 8,957 9,274 8,148 6,894 5,001
Groton, MA 13,223 13,049 10,988 8,695 5,526
Holden 40,054 37,205 30,347 22,730 13,086
Hudson 294,832 131,554 9,550 (58,690) (75,033)
NEPOOL Open Access Transmission Tariff
Original Sheet No. 203
Ipswich 155,236 157,925 157,349 156,698 154,730
Littleton, MA (41,619) (123,586) (181,003) (206,821) (202,092)
Mansfield 83,470 77,447 63,257 47,493 27,587
Marblehead 69,445 18,704 (18,140) (36,987) (38,448)
Middleton 15,307 (26,596) (57,548) (74,267) (77,246)
N. Attleboro 59,523 60,759 53,871 46,204 34,896
Paxton 1,842 1,029 (619) (2,450) (4,717)
Peabody 763,038 546,382 388,484 306,730 298,522
Princeton 3,434 3,944 3,920 3,891 3,652
Rowley 6,209 7,188 7,141 7,085 6,624
Shrewsbury 262,173 131,511 36,784 (11,421) (14,688)
Sterling 18,890 (865) (15,473) (23,392) (24,853)
Templeton 37,443 848 (25,981) (40,137) (42,055)
Wakefield (11,102) (12,875) (21,357) (30,787) (43,409)
W. Boylston 24,941 (6,095) (29,080) (41,596) (44,005)
Fitchburg Gas & Elec. 375,848 155,996 314 (72,632) (65,615)
Northeast Utilities (2,147,194) (4,246,007) (3,156,015) (3,749,172) (4,027,256)
Chicopee 65,354 203,640 351,337 489,743 625,658
CMEEC 186,502 863,628 1,590,007 2,281,934 2,969,848
Holyoke 730,430 584,044 504,066 465,151 474,860
S. Hadley 18,996 57,171 97,633 134,443 169,760
Westfield 43,648 133,654 229,422 317,877 403,772
Unitil 107,179 (29,883) (100,997) (206,816) (303,049)
United Illuminating 305,628 416,950 (1,229,622) (1,431,871) (1,586,875)
VELCO 112,518 257,844 290,997 233,229 76,264
Maine Public Serv.** (157,290) (157,290) (157,290) (157,290) (157,290)
Great Bay*** (43,856) (187,117) (347,921) (526,268) (722,156)
Total 0 0 0 0 0
* Includes Canal Electric Company, Cambridge Electric Light Company and
Commonwealth Electric Company.
** Reflects return of Tie Benefit payments made as part of Transition
Payments.
*** Reflects return of Regional Network Service payments made as transmission
support payments.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 204
Page 1 of 5
ATTACHMENT A
Form of Service Agreement for
Through or Out Service or Other Point-To-Point
Transmission Service
1.0 This Service Agreement, dated as of , is entered into, by and
between the NEPOOL Participants acting through ____________________ (the
"System Operator") and ("Transmission Customer").
2.0 The Transmission Customer has been determined by the System Operator to
have a Completed Application for Firm Transmission Service under this
Tariff.
3.0 If required, the Transmission Customer has provided to the System
Operator an Application deposit in the amount of $ , in
accordance with the provisions of this Tariff.
4.0 Service under this Service Agreement shall commence on the later of (1)
, or (2) the date on which construction of any Direct Assignment
Facilities and/or facility additions of upgrades are completed, or (3)
such other date as it is permitted to become effective by the Commission.
Service under this Service Agreement shall terminate on . [The
Service Agreement may be a blanket agreement for non-firm service.]
5.0 The Participants agree to provide, and the Transmission Customer agrees
to take and pay for, Transmission Service in accordance with the
provisions of the Tariff and this Service Agreement.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 205
Page 2 of 5
6.0 Any notice or request made to or by either party regarding this Service
Agreement shall be made to the representative of the other party as
indicated below.
NEPOOL Participants:
New England Power Pool
One Sullivan Road
Holyoke, MA 01040-2841
Transmission Customer:
___________________________________________
___________________________________________
___________________________________________
7.0 The Tariff is incorporated in this Service Agreement and made a part
hereof.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 206
Page 3 of 5
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
NEPOOL Participants:
By [System Operator]
By:_____________________________ _____________
Name Title Date
Transmission Customer:
By:_____________________________ _____________
Name Title Date
NEPOOL Open Access Transmission Tariff
Original Sheet No. 207
Page 4 of 5
Specifications For Through or Out Service or Other
Firm Point-To-Point Transmission Service
1.0 Term of Transaction: ________________________________
Start Date: _________________________________________
Termination Date: ___________________________________
2.0 Description of capacity and energy to be transmitted by Participants
including the electric Control Area in which the transaction originates.
______________________________________________________
3.0 Point(s) of Receipt:__________________________________
Delivering party:_____________________________________
4.0 Point(s) of delivery:_________________________________
Receiving party:______________________________________
5.0 Maximum amount of capacity and energy to be transmitted (Reserved
Capacity):___________________________________
6.0 Designation of party(ies) or other entity(ies) subject to reciprocal
service obligation:_________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
7.0 Name(s) of any intervening systems providing transmission
service:__________________________________________________
__________________________________________________________
NEPOOL Open Access Transmission Tariff
Original Sheet No. 208
Page 5 of 5
8.0 Service under this Service Agreement may be subject to some combination
of the charges detailed below. (The appropriate charges for individual
transactions will be determined in accordance with the terms and
conditions of this Tariff.)
8.1 Transmission Charge:______________________________
__________________________________________________
8.2 System Impact Study and/or Facilities Study Charge(s):
__________________________________________________
__________________________________________________
8.3 Direct Assignment Facilities Charge:______________
__________________________________________________
NEPOOL Open Access Transmission Tariff
Original Sheet No. 209
ATTACHMENT B
Form Of Service Agreement For Regional
Network Service, including
Network Integration Transmission Service
1.0 This Service Agreement, dated as of ______________, is entered into, by
and between the NEPOOL Participants acting through
___________________________ (the "System Operator"), and ____________
("Transmission Customer").
2.0 The Transmission Customer has been determined by the System Operator to
be a Transmission Customer under the Tariff and has requested Regional
Network Service under the Tariff.
3.0 Regional Network Service (including, if requested, Network Integration
Transmission Service) under this Agreement shall be provided by the
NEPOOL Participants upon request by an authorized representative of the
Transmission Customer.
4.0 The Transmission Customer agrees to supply information the System
Operator deem reasonably necessary in accordance with Good Utility
Practice in order for it to provide the requested service.
5.0 The Participants agree to provide and the Transmission Customer agrees to
take and pay for Regional Network Service in accordance with the
provisions of the Tariff and this Service Agreement.
6.0 Any notice or request made to or by either party regarding this Service
Agreement shall be made to the representative of the other party as
indicated below.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 210
NEPOOL Participants:
New England Power Pool
One Sullivan Road
Holyoke, MA 01040-2841
Transmission Customer:
7.0 The Tariff is incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
Transmission Customer:
By:_______________________________________________
Name Title Date
NEPOOL Participants:
By: [System Operator]
By:_______________________________________________
Name Title Date
NEPOOL Open Access Transmission Tariff
Original Sheet No. 211
ATTACHMENT C
Methodology To Assess Available Transmission Capability
Available Transmission Capability (ATC) will be assessed based on industry-
accepted standards; currently, ATC will be established by reducing the
determined Total Transfer Capability (TTC) by the Transmission Reliability
Margin (TRM) and by transmission commitments.
Total Transfer Capability (TTC) is the determined amount of electric power that
can be reliably transferred over the network consistent with the following:
o Good utility practice
o NERC standards, guides, and procedures;
o NPCC criteria and guidelines;
o New England criteria, rules, procedures, and reliability standards;
o Applicable guides, standards, and criteria of the affected Transmission
Owner(s), whether Participant or Non-Participant;
o Other applicable guidelines and standards which may need to be
established from time to time.
As such, TTC will be determined at a level which maintains all of the
following:
o All equipment within its applicable capabilities;
o Voltages and reactive reserves within acceptable levels;
o Stability maintained with adequate levels of damping;
NEPOOL Open Access Transmission Tariff
Original Sheet No. 212
o Frequency (Hz) within acceptable levels.
TTC will be evaluated using appropriate and suitable tools, data, and
information, considering the physical impacts of electric power transfers on
the interconnected transmission network. It will reflect anticipated system
conditions and equipment status to the degree practicable.
The Transmission Reliability Margin (TRM) will be established at a level which
incorporates the uncertainties and continued variability of system conditions
and the practical limitations of system control.
Transmission commitments include existing and pending requests for transmission
service and obligations of other existing contracts under which transmission
service is provided.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 213
ATTACHMENT D
Methodology for Completing a System Impact Study
The system impact study will be performed to evaluate the impact of the
requested service on the reliability and operating characteristics of the bulk
power system, consistent with:
o Good utility practice
o NERC standards, guides, and procedures;
o NPCC criteria and guidelines;
o New England criteria, rules, procedures, and reliability standards;
o Applicable guides, standards, and criteria of the impacted Transmission
Owner(s), whether Participant or Non-Participant;
o Other applicable guidelines and standards which may need to be
established from time to time.
As such, the study will examine the impact on the New England regional bulk
power system and its component systems and neighboring and external systems.
Consistent with the aforementioned, the ability to operate the system subject
to the following will be considered:
o All equipment within its applicable capabilities;
o Voltages and reactive reserves within acceptable levels;
o Stability maintained with adequate levels of damping;
o Frequency (Hz) within acceptable levels.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 214
The study will consider the reliability requirements to meet existing and
pending obligations of the Participants and the obligations of the impacted
Transmission Owner(s).
The study will be performed using appropriate and suitable analysis tools and
modeling data consistent with the nature and duration of the requested service.
It is expected that the Eligible Customer will provide the information as
prescribed in Exhibit 1 of Attachment I, and such other information as may be
reasonably required and associated with the requested service and necessary for
its study. It is also recognized that it may be determined that additional or
specialized analysis tools or computer software are necessary for the study.
The responsibility for the provision of these items will be subject to the
System Impact Study Agreement.
The study will identify if the requested service or a portion of it can be
provided without adverse impact on the reliability and operating
characteristics of the system. The study will also identify if it appears that
modification of the system is necessary to provide the service.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 215
ATTACHMENT E
Local Networks
The Local Networks, as of the effective date of this Tariff, are those of
the following:
1. Bangor Hydro-Electric Company
2. Boston Edison Company
3. Central Maine Power Company
4. the Commonwealth Energy System companies
5. the Eastern Utility Associates companies
6. the New England Electric System companies
7. the Northeast Utilities companies
8. The United Illuminating Company
9. Vermont Electric Power Company and the entities which are grouped
with it as a single Participant.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 216
ATTACHMENT F
Annual Transmission Revenue Requirements
The Transmission Revenue Requirements for each Participant will reflect
the Participants' costs for Pool Transmission Facilities (PTF). The
Transmission Revenue Requirements will be an annual calculation based on the
previous calendar year's 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, as set forth
below:
I. The Transmission Revenue Requirement shall equal the sum of the
Transmission Provider's (A) Return and Associated Income Taxes, (B)
Transmission Depreciation Expense, (C) Transmission Related Amortization
of Loss on Reacquired Debt, (D) Transmission Related Amortization of
Investment Tax Credits, (E) Transmission Related Municipal Tax Expense,
(F) Transmission Operation and Maintenance Expense, (G) Transmission
Related Administrative and General Expense, (H) Transmission Related
Integrated Facilities Credit, minus (I) Transmission Support Revenue,
plus (J) Transmission Support Expense, plus (K) Transmission Related
Expense from Generators.
A. Return and Associated Income Taxes shall equal the product of the
Transmission Investment Base and the Cost of Capital Rate.
1. Transmission Investment Base
The Transmission Investment Base will be (a) PTF
Transmission Plant, plus (b) Transmission Related General
Plant, plus (c) Transmission Plant Held for Future Use,
less (d) Transmission Related Depreciation Reserve,
less (e) Transmission Related
NEPOOL Open Access Transmission Tariff
Original Sheet No. 217
Accumulated Deferred Taxes, plus (f) Transmission Related
Loss on Reacquired Debt, plus (g) Other Regulatory Assets,
plus (h) Transmission Prepayments, plus (i) Transmission
Materials and Supplies, plus (j) Transmission Related Cash
Working Capital.
(a) PTF Transmission Plant will equal the balance of
the Transmission Provider's PTF Investment in
Transmission Plant excluding the Transmission
Provider's capital leases in the Hydro-Quebec DC
facilities (HQ leases).
(b) Transmission Related General Plant shall equal the
Transmission Provider's balance of investment in
General Plant multiplied by the ratio of
Transmission related direct Wages and Salaries
including those of the affiliated Companies to the
Transmission Provider's total direct Wages and
Salaries including those of the affiliated
Companies and excluding Administrative and General
Wages and Salaries (Transmission Wages and Salaries
Allocation Factor), multiplied by the ratio of PTF
Transmission Plant to Total Investment in
Transmission Plant excluding HQ leases (PTF
Transmission Plant Allocation Factor).
(c) Transmission Plant Held for Future Use shall equal
the balance of Transmission investment in FERC
Account 105 multiplied by the PTF Transmission
Plant Allocation Factor.
(d) Transmission Related Depreciation Reserve shall
equal the balance of Total Transmission
Depreciation Reserve, plus the monthly balance of
Transmission Related General Plant Depreciation
Reserve. Transmission Related General Plant
Depreciation Reserve shall equal the product of
General Plant Depreciation
NEPOOL Open Access Transmission Tariff
Original Sheet No. 218
Reserve and the Transmission Wages and Salaries
Allocation Factor described in Section (I)(A)(1)(b)
above. This sum shall be multiplied by the PTF
Transmission Plant Allocation Factor, described in
Section (I)(A)(1)(b) above.
(e) Transmission Related Accumulated Deferred Taxes
shall equal the Transmission Provider's balance of
Total Accumulated Deferred Income Taxes, multiplied
by the ratio of Total Investment in Transmission
Plant excluding HQ leases to Total Plant in service
excluding General Plant and HQ Leases (Plant
Allocation Factor), further multiplied by the PTF
Transmission Plant Allocation Factor described in
Section (I)(A)(1)(b) above.
(f) Transmission Related Loss on Reacquired Debt shall
equal the Transmission Provider's balance of Total
Loss on Reacquired Debt multiplied by the Plant
Allocation Factor as described in Section
(I)(A)(1)(e) above, further multiplied by the PTF
Transmission Plant Allocation Factor described in
Section (I)(A)(1)(b) above.
(g) Other Regulatory Assets shall equal the
Transmission Provider's balance of any deferred
rate recovery FAS 106 expenses multiplied
by the Transmission Wages and Salaries Allocation
Factor described in Section (I)(A)(1)(b), plus the
Transmission Provider's year end balance of FAS 109
multiplied by the Plant Allocation Factor described
in Section (I)(A)(1)(e) above. This sum shall be
multiplied by the PTF Transmission Plant Allocation
Factor, described in Section (I)(A)(1)(b) above.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 219
(h) Transmission Prepayments shall equal the
Transmission Provider's balance of prepayments
multiplied by the Wages and Salaries allocator
described in Section (I)(A)(1)(b) and further
multiplied by the PTF Transmission Plant Allocation
Factor described in Section (I)(A)(1)(b) above.
(i) Transmission Materials and Supplies shall equal the
Transmission Provider's balance of Transmission
Plant Materials and Supplies, multiplied by the PTF
Transmission Plant Allocation Factor described in
Section I(A)(1)(b) above.
(j) Transmission Related Cash Working Capital shall be
a 12.5% allowance (45 days/360 days) of
Transmission Operation and Maintenance Expense and
Transmission Related Administrative and General
Expense.
2. Cost of Capital Rate
The Cost of Capital Rate will equal (a) the Transmission
Provider's Weighted Cost of Capital, plus (b) Federal
Income Tax plus (c) State Income Tax.
(a) The Weighted Cost of Capital will be calculated
based upon the capital structure at the end of each
year and will equal the sum of:
(i) the long-term debt component, which equals
the product of the actual weighted average
embedded cost to maturity of the Transmission
Provider's long-term debt then outstanding
and the ratio that long-term debt is to the
Transmission Provider's total capital.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 220
(ii) the preferred stock component, which equals
the product of the actual weighted average
embedded cost to maturity of the Transmission
Provider's preferred stock then outstanding
and the ratio that preferred stock is to the
Transmission Provider's total capital.
(iii) the return on equity component, which equals
the product of the Transmission Provider's
Return on Equity as set in the Provider's LNS
open access tariff rate and the ratio that
common equity is to the Transmission
Provider's total capital.
(b) Federal Income Tax shall equal
A x FT
------
1 - FT
Where FT is the Federal Income Tax Rate and A is
the sum of the preferred stock component and the
return on equity component, as determined in
Section (I)(A)(2)(a)(ii) and Section
(I)(A)(2)(a)(iii) above.
(c) State Income Tax shall equal
(A + Federal Income Tax) x ST
------------------------------
1 - ST
where ST is the State Income Tax Rate, A is the
sum of the preferred stock component and the
return on equity component determined in Section
(I)(A)(2)(a)(ii) and Section (I)(A)(2)(a)(iii)
above, and Federal Income Tax is the rate
determined in Section (I)(A)(2)(b) above.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 221
B. Transmission Depreciation Expense shall equal the PTF Transmission
Plant Allocation Factor described in Section (I)(A)(1)(b) above,
multiplied by the sum of Depreciation Expense for Transmission
Plant, plus an allocation of General Plant Depreciation Expense
calculated by multiplying General Plant Depreciation Expense by
the Wages and Salaries Allocation Factor, described in Section
(I)(A)(1)(b) above.
C. Transmission Related Amortization of Loss on Reacquired Debt shall
equal the Transmission Provider's Amortization of Loss on
Reacquired Debt multiplied by the Plant Allocation Factor as
described in Section (I)(A)(1)(e) above, and further multiplied by
the PTF Transmission Plant Allocation Factor described in Section
(I)(A)(1)(b) above.
D. Transmission Related Amortization of Investment Tax Credits shall
equal the Transmission Provider's Amortization of Investment Tax
Credits multiplied by the Plant Allocation Factor described in
Section (I)(A)(1)(e) above, and further multiplied by the PTF
Transmission Plant Allocation Factor described in Section
(I)(A)(1)(b) above.
E. Transmission Related Municipal Tax Expense shall equal the
Transmission Provider's total municipal tax expense multiplied by
the Plant Allocation Factor described in Section (I)(A)(1)(e)
above, and further multiplied by the PTF Transmission Plant
Allocation Factor described in Section (I)(A)(1)(b) above.
F. Transmission Operation and Maintenance Expense shall equal all
expenses charged to FERC Account Numbers 560 through 573,
excluding those expenses in Account Number 565, multiplied by the
PTF Transmission Plant Allocation Factor described in Section
(I)(A)(1)(b) above.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 222
G. Transmission Related Administrative and General Expenses shall
equal the Transmission Provider's Administrative and General
Expenses, plus Payroll Taxes, multiplied by the Wages and Salaries
Allocation Factor described in Section (I)(A)(1)(b) above, further
multiplied by the PTF Transmission Plant Allocation Factor
described in Section (I)(A)(1)(b) above.
H. Transmission Related Integrated Facilities Credit shall equal the
Transmission Provider's transmission payments to affiliates for
use of the integrated transmission facilities of those affiliates.
I. Transmission Support Revenue shall equal Transmission Provider's
revenue received for PTF transmission support.
J. Transmission Support Expense shall equal Transmission Provider's
expenses paid for PTF transmission support.
K. Transmission Related Expense from Generators as may be determined
by the Management Committee.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 223
ATTACHMENT G
List Of Excepted Transaction Agreements
The lists which follow have been prepared by the individual Participants whose
names appear at the head of each list, and have not been checked or approved by
any other Participants.
Central Maine Power Company ("CMP")
Parties to the
Agreement
Arrangement CMP and:
Firm Wheeling
Expense
PSNH Wheeling for Bolt Hill NU
Revenue
Unitil Wheeling of BHE QFs Unitil
Madison Electric Works NU/MEW
Support Payments
Expense
HQ Phase II AC Facilities BECO
HQ Phase II AC Facilities NEP
HQ Phase I NEETCO
HQ Phase I VETCO
HQ Phase II NEH-TEL CO INC.
HQ Phase II NEH-T CORP (NHH)
Orrington SS MEPCO
Millstone 3 NU
Revenue
WF Wyman #4:
Section 386 (345 kV) Joint Owners
Section 164-167 (115 kV) Joint Owners
Maine Yankee (115 kV) Joint Owners
Section 214 (115 kV tie to N.H.) NU
Section 375 (345 kV Buxton to M.Y.) MEPCO
NEPOOL Open Access Transmission Tariff
Original Sheet No. 224
Bundled Requirements Sales
Houlton Wtr Co. Pwr Sales Agreement HWC
Fox Island Electric Coop
Kennebunk Light and Power KPL
Commonwealth Energy System
SUPPORT ARRANGEMENTS
Canal 1 Transmission Agreement
Description: Agreement to provide for transmission of electricity from Canal 1
to the transmission system of the unit power purchasers.
Parties to the Agreement: Boston Edison, Montaup, NEP, Cambridge, Commonwealth
Effective Date: 7/1/68
Canal 2 Transmission Support Agreement
Description: Agreement to support transmission facilities required for Canal 2
and Pilgrim 2.
Parties to the Agreement: Commonwealth, Boston Edison, Montaup
Effective Date: 5/1/75
324 Line (Canal to Pilgrim Stabilizer Line) & 355 Line (Pilgrim to Walpole)
Description: Agreement to support transmission facilities from Canal and
Pilgrim.
Parties to the Agreement: Commonwealth, Boston Edison, Montaup, NEP
Effective Date: 3/29/68
Seabrook Transmission Support Agreement
Description: Agreement to support three 345 KV transmission lines from Seabrook
Parties to the Agreement: Joint Owners
Effective Date: 5/1/73
NEPOOL Open Access Transmission Tariff
Original Sheet No. 225
Wyman 4 Transmission Agreement (Support)
Description: Agreement to support 345 kV and 115kV transmission facilities from
the unit.
Parties to the Agreement: Central Maine Power, Joint Owners (Commonwealth).
Effective Date: 11/74
Bell Rock Switching Station Support Agreement
Description: Agreement to support 115 KV switching station.
Parties to the Agreement: Commonwealth, Montaup
Effective Date: 1/15/73
Joint Ownership Agreement (336 Line)
Description: Agreement to purchase 20% interest in section of the 336 line.
Parties to the Agreement: Commonwealth, Boston Edison
Effective Date: 1/2/68
Participation Agreement (Maine-New Brunswick interconnection)
Description: Agreement to support the construction and maintenance of a 345 KV
of the portion of an interconnection between a substation in Wiscasset, ME and
a substation in New Brunswick.
Parties to the Agreement: Maine Electric Power and Participants
Effective Date: 5/69
Station 402 Agreement
Description: Agreement to support a 115 KV step down station.
Parties to the Agreement: Cambridge, Boston Edison
Effective Date: 10/1/65
Station 509 Agreement
Description: Agreement to support 345/115 KV station.
Parties to the Agreement: Cambridge, Boston Edison
Effective Date: 1/1/75
NEPOOL Open Access Transmission Tariff
Original Sheet No. 226
Hydro Quebec Support Agreements
Phase II Maine Electric Power SVC Facilities Support Agreement
Description: Agreement to support reinforcements to the MEP AC transmission
system. N.H. Hydro proposes to amend the N.H. Transmission Facilities Support
Agreement to include costs incurred under this Agreement.
Parties to the Agreement: Agreement is between Maine Electric Power and N.H.
Hydro
Effective Date: 10/1/88
New England Power AC Facilities Support Agreement
Description: Agreement covers improvements and reinforcements to NEP's AC
transmission system necessitated by the HQ phase II interconnection agreement.
Parties to the Agreement: NEP and Supporters
Effective Date: 6/1/85
Boston Edison AC Facilities Support Agreement
Description: Agreement covers improvements and reinforcements to BECo's AC
transmission system necessitated by the HQ phase II interconnection agreement.
Parties to the Agreement: Boston Edison and Supporters
Effective Date: 6/1/85
LONG TERM WHEELING
Agreement for Transfer of Electricity (Canal 1)
Description: Agreement for transfer of energy and capacity from Canal unit 1 to
Cambridge Electric across the BECo system.
Parties to the Agreement: Cambridge, Boston Edison
Effective Date: 7/1/68
Boott Hydro Wheeling
Description: Agreement to wheel power from Boot Hydro (20 MW) to Commonwealth
under NEP Tariff No. 3.
Parties to the Agreement: Commonwealth, NEP
Effective Date: 11/21/85
NEPOOL Open Access Transmission Tariff
Original Sheet No. 227
Collins Hydro Wheeling
Description: Agreement to wheel power (1.2 MW) from Collins Hydro to
Commonwealth under NEP Tariff No. 3.
Parties to the Agreement: Commonwealth, NEP
Effective Date: 12/31/84
Ware Hydro Wheeling
Description: Agreement to wheel power from Ware Hydro to Commonwealth under
NEP Tariff No. 3.
Parties to the Agreement: Commonwealth, NEP
Effective Date: 2/1/84
Chicopee Hydro Wheeling
Description: Agreement to wheel power (2 MW) from Chicopee Hydro to
Commonwealth
Parties to the Agreement: Commonwealth, Northeast Utilities
Effective Date: 5/1/95
Altresco Wheeling
Description: Wheeling charge for 30 MW entitlement
Parties to the Agreement: Cambridge, Altresco
Effective Date: 9/1/93
Altresco Wheeling
Description: Wheeling charge for 30 MW entitlement
Parties to the Agreement: Commonwealth, Altresco
Effective Date: 9/1/93
Masspower 1 Wheeling
Description: Wheeling charge for 30 MW entitlement
Parties to the Agreement: Commonwealth, Massachusetts
Effective Date: 7/31/93
Masspower 2 Wheeling
Description: Wheeling charge for 30 MW entitlement
Parties to the Agreement: Commonwealth, Masspower
Effective Date: 7/31/93
NEPOOL Open Access Transmission Tariff
Original Sheet No. 228
(As corrected)
Northeast Energy Associates Wheeling
Description: Wheeling of 53 MW entitlement
Parties to the Agreement: Commonwealth, Northeast Energy Associates
Effective Date: 10/1/91
Fitchburg Gas and Electric Light Co.
NU (Linweave)
a. Western Mass Electric Description - Transmission service from
Holyoke Water Power to NEP system
End Term - 10/31/2012
Capacity - 3MW
b. Holyoke Water Power Description - Distribution Agreement
End Term - 10/31/2012
Capacity - 3MW
Support Agreements CMP-Wyman #4 transmission support
agreements
NU-Millstone 3 transmission
support agreements
Various-HO Phase 1 support
agreements
Various-HO Phase 2 support
agreements
Unitil Power Corp.
Central Maine Power Co. Description
- Perc and BHE system energy
delivered to the BHE/CMP
border by BHE at no
additional charge
End Term/Capacity - 25MW
ending 07/01/1997,
24.27MW ending 10/31/2001,
20.3MW ending 08/15/2002,
and 4MW ending 02/28/2003
NEP (Maine Yankee) Description
- UPC reimburses NEP for
Maine Yankee transmission
to the NEP/PSNH border.
End Term - October 31, 2005
Capacity - 2MW
NEPOOL Open Access Transmission Tariff
Original Sheet No. 229
NEPOOL Open Access Transmission Tariff
Original Sheet No. 228
(As corrected)
NEP (Ocean States Description
Power 1 & 2) - Service under FERC Electric Tariff
no. 3 Delivery made from NEP system
to the PSNH border
End Term - October 31, 2010
Capacity - 22.5 MW
NEP (Salem Harbor 3) Description - Article VIII of the
contract
- Service under FERC
Electric Tariff no. 3.
Delivery made from NEP
system to the PSNH border
End Term - October 31, 2010
Capacity - 9.8 MW
UI Bridgeport Harbor 3 Description - Reimburse UI for delivery
subject to terms/conditions of Corridor &
Non-Firm outflow agreements UI-NU in
9/11/92 letter
End Term - 10/31/2005
Capacity - 15MW
Support Agreements Description - Various HQ Phase II support
agreements
NEW ENGLAND POWER COMPANY AND ITS AFFILIATES
A. Wheeling Agreements
The following NEP Long Term Point-to-Point transmission services will be
grandfathered at a fixed rate of $17.00/kW-yr. Distribution and
transformation rates, when applicable, will be subject to NEP's
applicable point-to-point tariffs.
PURCHASER AMOUNT DATE OF
AGREEMENT PURCHASE KW SERVICE
Boston Edison L'Energia 65,048 7/9/96
Braintree NEP System 2,000 7/9/96
NEPOOL Open Access Transmission Tariff
Original Sheet No. 230
Commonwealth Electric Boott Hydro 20,000 7/9/96
Collins Dam 1,500 7/9/96
Ware Hydro 1,200 7/9/96
Hingham NEP Manchester St 1,446 7/9/96
NEP Bear Swamp 502 7/9/96
Hull Refuse Fuels 341 7/9/96
Montaup McNeil Burlington (thru) 8,000 7/9/96
Taunton NEP System 10,000 7/9/96
Unitil Ocean State I & II 22,500* 7/9/96
Salem Harbor 9,800* 7/9/96
* Amounts change with seasonal unit ratings.
B. Transmission of Maine Yankee and Pool-Planned unit sales by NEP to
Unitil will continue under its term, unless otherwise terminated by
parties.
C. Support Agreements for PTF Facilities
1. Transmission Support Agreements to facilitate interconnection of Pool
Planned Units. (Multi party agreements)
* Millstone 3 dated 8/9/74.
* Wyman 4 dated 11/1/74.
* Seabrook
a) PSNH ac reinforcements dated 5/1/73.
b NEP's Tewksbury/Amesbury line, multi parties dated 5/1/73.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 231
2. Canal Transmission Agreement/Medway line, NEP/BECO/EUA/CE, Letter
Agreement dated 3/29/68 with amendment dated 1/5/73.
3. Second Canal Circuit dated 11/4/74.
4. PTF support agreements with Boston Edison Company.
-> 342 stabilizer line dated 3/29/68 with amendment dated 1/5/73.
-> Canal/Medway dated 12/1/65, amended 2/18/66 with supplemental
agreement dated 4/9/79.
-> West Medway ACB dated 1/31/69.
-> 201/502 interconnection, Letter Agreement dated 5/11/79.
-> Golden Hills/Mystic
This is a two-way agreement dated 5/25/88 with amendment dated
2/1/95.
-> Enron Interconnection Upgrades dated 6/27/95.
NEP pays BE for upgrades required at Medway due to
interconnection of the Milford Plant.
-> NEP/BECO Sandy Pond/Tewksbury/Woburn line support, Letter
Agreement dated 7/18/73.
-> NEP/BECO M-139 line support dated 11/12/85, amended 3/1/95.
-> NEP/BECO N-140 line support dated 11/12/85, amended 3/1/95.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 232
5. All PTF related Hydro Quebec agreements. (See attached Exhibit 1 for a
list of all Hydro Quebec related agreements.)
Ongoing support of AC reinforcement of NEP transmission.
6. Agreements with EUA companies.
-> W. Farnum relays dated 2/17/95, BVE/NE.
-> April 30, 1979 Letter Agreement between EUA and NEPSCO which outlined
the basis for the next two agreements and other anticipated
transmission additions to accommodate Charlestown generation.
-> 345 kV Northern RI transmission dated 7/15/73, amended 4/1/88, BVE/NE.
-> 2nd transformer at West Farnum dated 8/1/81, BVE/NE.
7. Support Agreements with Vermont companies.
-> NEP/VELCO F-206 line dated 4/5/74.
-> NEP/CVPS 186 line dated 8/1/67.
8. Agreements with NU companies.
-> NEP/PSNH Q-195 Terminal support dated 12/22/58.
-> NEP/PSNH Y-151 agreement dated 6/26/45 and subsequently amended.
-> Tallman/Kaslow agreement and subsequent amendment. This agreement
intends to cover mutual use of interconnections between NEP and PSNH,
dated 6/29/79 and amended 2/21/90.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 233
-> North/South Integration Agreement dated 2/24/90, and last amended in
October 1996.
9. NEP/MDC support agreement for D-156 and W-23 lines dated 8/31/95.
D. Other Agreements Not Subject To The NEPOOL Agreement
The above is a list of grandfathered facilities support and wheeling
agreements over the PTF system to which NEP or its affiliated companies are a
party. This list does not include any agreement not related to rights across
PTF such as study agreements, requirement contracts and tariffs, purchase and
sales power contracts, water rights, right-of-way, pole or duct lease
agreements, distribution wheeling or support agreements, stranded cost
recovery agreements, metering agreements and services across non-PTF
transmission system. These agreements are not subject to the NEPOOL
Agreement and continue per their own terms and conditions. Furthermore, all
Network Service Agreements under NEP's Open Access Tariff, as amended from
time to time, and any agreements or arrangements between NEP and its
affiliated companies are not subject to the NEPOOL Agreement and will
continue per their terms as may be amended from time to time.
Northeast Utilities Service Company ("NUSCO")
Effective
Company Service FERC Date
CMEEC Comprehensive Transmission Service Agreement ER91-209-000 11/29/90
ER93-297-000
Chicopee Muni. Comprehensive Transmission Service Agreement ER85-689-000 11/1/95
ER93-219-000
So. Hadley Elec. Comprehensive Transmission Service Agreement EC-90-10-000 1/1/95
ER85-689-000
ER85-720-000
Westfield G&E Comprehensive Transmission Service Agreement EC90-10-000 1/1/95
Unitil (Rate 158) Comprehensive Transmission Service Agreement EL92-42-000 11/11/92
NEPOOL Open Access Transmission Tariff
Original Sheet No. 234
Point-to-Point Transmission Service Agreement ER94-1160-000 9/1/94
Madison Electric
NEP Point-to-Point Transmission Service Agreement ER93-403-000 4/1/93
SBNG
Holyoke G&E Point-to-Point Transmission Service Agreement ER95-1354-000 7/1/95
NYPA Power
CMP (Rate 104) Point-to-Point Transmission Service Agreement 12/15/81
Bolt Hill Sub.
Commonwealth Elec. Point-to-Point Transmission Service Agreement ER86-85-000 5/1/85
Swift River -Chicopee ER86-79-001
Units 1&2
Groton Elec. Point-to-Point Transmission Service Agreement ER92-66-000 11/1/89
Glendale Hydro
UI Point-to-Point Transmission Service Agreement ER92-65-000 5/1/90
Corridor
Groton Elec. Point-to-Point Transmission Service Agreement ER92-458-000 4/1/92
Littleville Power -Texon ER92-66-000
Hydro
ER93-219-000
Fitchburg G&E Point-to-Point Transmission Service Agreement ER94-559-000 1/1/95
Harris Hydro ER95-357-000
Masspower Point-to-Point Transmission Service Agreement ER94-902-000 7/31/93
ER93-219-000
LILCO Point-to-Point Transmission Service Agreement ER94-1201-000 5/1/94
Altresco Pittsfield Point-to-Point Transmission Service Agreement ER95-306-000 1/1/95
Limited
MMWEC Point-to-Point Transmission Service Agreement ER96-201-000 11/1/95
NYPA Power
NEPOOL Open Access Transmission Tariff
Original Sheet No. 235
Point-to-Point Transmission Service Agreement ER96-201-000 11/1/95
Pascoag Fire Dist.
NYPA Power
C.E. Pontook LP Point-to-Point Transmission Service Agreement 7/26/85
Suncook Energy Corp. Point-to-Point Transmission Service Agreement ER96-1277-000 4/8/96
Unitil Power Corporation Point-to-Point Transmission Service Agreement ER93-219-000 12/19/88
Baystate State Gas ER89-219-000
NUSCO Point-to-Point Transmission Service Agreement ER96-2338-000 10/1/96
Suffolk County, NY
NUSCO Point-to-Point Transmission Service Agreement ER83-358-000 12/1/81
MMWEC, Stonybrook ER93-219-000
NUSCO Point-to-Point Transmission Service Agreement ER94-1088-000 6/1/94
Unitil: Norwalk 1&2
NUSCO Point-to-Point Transmission Service Agreement ER93-417-001 11/1/94
Fitchburg G&E: System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER94-1591-000 11/1/94
Reading Muni.: Slice of
System
NUSCO Point-to-Point Transmission Service Agreement ER93-901-000 11/1/93
Middleton Muni.: System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER93-884-000 11/1/93
Georgetown Muni.: System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER93-915-00 11/1/93
Princeton Muni.: Holyoke
Hydro
NEPOOL Open Access Transmission Tariff
Original Sheet No. 236
Point-to-Point Transmission Service Agreement ER93-913-000 11/1/93
NUSCO
VPPSA: System Sale
NUSCO Point-to-Point Transmission Service Agreement ER94-1211-000 5/1/94
Citizens Utilities: EC90-10-007
System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER94-1592-000 11/1/94
Holyoke G&E: System Sale
NUSCO Point-to-Point Transmission Service Agreement ER94-1207-000 11/1/94
Danvers Elec.: System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER94-1207-000 11/1/94
Littleton Electric L&W:
System Sale
NUSCO Point-to-Point Transmission Service Agreement ER94-1207-000 11/1/94
Mansfield Muni.: System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER95-584-000 5/1/95
Sterling Muni.: System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER95-1137-000 6/1/95
Princeton Muni.: System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER95-1461-000 8/1/95
Vermont Marble -System
Sale
NUSCO Point-to-Point Transmission Service Agreement ER96-160-000 11/1/95
Rowley Muni.: System Sale
Littleton - Light Point-to-Point Transmission Service Agreement 10/30/91
NEPOOL Open Access Transmission Tariff
Original Sheet No. 237
Marlboro Hydro
Corp./Minnewawa
NEP Point-to-Point Transmission Service Agreement 12/6/91
Waste Management of
N.H./Turnkey
NEP Point-to-Point Transmission Service Agreement ER93-914-000 11/1/93
Slice of System ER95-41-000
CMEEC Point-to-Point Transmission Service Agreement ER93-663-000 6/15/93
Liquid Carbonic
Indus./Medical Corp.
Wallingford Elec. Point-to-Point Transmission Service Agreement ER92-730-000 7/27/92
CT Steel
CMP Point-to-Point Transmission Service Agreement ER94-48-000 11/1/95
ER95-1635-000
ER95-1557-000
CMP Point-to-Point Transmission Service Agreement ER94-48-000 11/1/95
ER95-1635-000
BECO Point-to-Point Transmission Service Agreement ER94-48-000 11/1/95
ER95-1851-000
ER96-3144-000
NUSCO Point-to-Point Transmission Service Agreement ER94-48-000 11/1/94
Unitil Power Corporation: ER94-1581-000
Slice
Connecticut Yankee Transmission Station Service (115 KV) Support Agreement
Millstone #3 Sharing Transmission Support Agreement 8/9/74
Agreement
345 KV Millstone -
Manchester
310 line
NEPOOL Open Access Transmission Tariff
Original Sheet No. 238
Transmission Support Agreement ER93-891-000 11/1/93
UI
Derby Junction (5/1/61)
Old Town-Hawthorne
(11/1/73)
Pease Road (1/1/69)
Glen Lake (7/20/56)
Devon and Trumball
Junction (7/1/61)
UI Transmission Support Agreement E-9154 12/1/72
Black Pond
Holyoke G&E Transmission Support Agreement ER82-626-000 1/1/73
Fairmont 115 KV ER82-627-000
Substation
MMWEC Transmission Support Agreement 8/1/79
345 KV Ludlow-Stonybrook
Seabrook Station Transmission Support Agreement 5/1/73
345 KV Seabrook -Timber
Swamp -Newington 369 line
345 KV Seabrook -Scobie
363 line
345 KV Seabrook -Ward
Hill -Tewksbury 394 line
VEP Transmission Support Agreement 12/1/72
Littleton 230/115 KV Sub.
NEP Transmission Support Agreement 12/22/58
Moore Sub. - Q195 115KV
Terminal
NEPOOL Open Access Transmission Tariff
Original Sheet No. 239
1. Transmission Allocation Agreement Among Vermont Electric Power Company, Inc., New England Power Company, The Connecticut
Light and Power Company and Western Massachusetts Electric Company dated January 6, 1989 (ER89-522-000, Effective November 1,
1988)
2. Transmission Agreement For Use of North-South Interface Of New England Transmission System Between Northeast Utilities and
New England Power Company dated February 24, 1990.
3. Letter agreement between Northeast Utilities and Vermont Electric Power Company, dated July 24, 1990.
4. Letter agreement between Northeast Utilities and Citizens Utilities Company, dated August 2, 1990.
5. Letter agreement between Northeast Utilities/PSNH and New England Power Company, dated June 1, 1970.
6. Letter agreement between Northeast Utilities/PSNH and New England Power Company, dated June 29, 1979.
7. Letter agreement between Northeast Utilities/PSNH and Central Maine Power Company, dated November 18, 1986.
8. Transmission service pursuant to the Agreement between NUSCO/PSNH and Citizens Utilities, dated February 12, 1982 for service
to the Northumberland, New Hampshire, Bloomfield, Vermont and Beecher Falls, Vermont delivery points.
9. Transmission Agreement Between New Hampshire Electric Cooperative, Inc. and Public Service Company of New Hampshire, dated
March 31, 1981.
10. All licenses and certificates granted by the New Hampshire Public Utilities Commission or other state, municipal or federal
regulatory bodies are grandfathered.
11. All transmission arrangements supporting and providing transmission service across non-PTF facilities are not subject to this
Tariff and will continue under their existing terms and conditions.
Eastern Utilities Associate System ("EUA")
Expiration FERC Number/
Contract Name Parties Dates Docket Number
Canal-Medway Line (Wood Pole Line Comelec, BECO and Montaup End of Life of Canal #1 MECO/FPC No. 5
#331)
Trans of Canal #2/Pilgrim #2 Units Comelec, BECO and Montaup 2008 E-9358
NEPOOL Open Access Transmission Tariff
Original Sheet No. 240
Letter Agree-Auburn St. Tap Bridges BECO and Montaup Thru Life of Tap Bridges E-9404
Use of Pilgrim Towers BECO and Montaup 19 Years From Install or ER79-485-000
When New 345 kv Circuit
is Needed
Card Street Use Agreement BECO, Comelec and BVE August 30, 2001 E-9022
Transmission to Middleboro/ Pilgrim #1 BECO and Montaup When MGLD Contract E-9276
Expires with Pilgrim Amended ER77-179-000
East Bridgewater Gas Circuit Breaker Eastern Edison and Middleboro Gas ER91-59-000
and Electric
1601 Breaker at Bridgewater Substation Middleboro and Montaup N/A
Contract Demand/Radial Line Use Middleboro and Montaup 60 Month's Written Notice ER83-485-000
ER83-486-000
Transmission Support/ Millstone #3 Montaup and Others Term of the Sharing ER93-222-000
Agreement
Transmission Support/ Seabrook #1 Montaup and Others Term of the Joint Owners ER76-694-000
Agreement
Rental Charges for Trans. Facilities Blackstone and Montaup Perpetuity Implied ER83-642-000
in Northern R.I. ER88-400-000
Sharing Charges for Trans. Facilities Blackstone/Narragansett July 14, 2003 ER83-642-000
in Northern R.I. ER88-400-000
Sharing Charges for 2nd/ Xformer W. Blackstone/Narragansett July 28, 2013 ER83-642-000
Farnum Sub.
Transmission Support Agreement Blackstone/Narragansett Mont./New 3 Year's Written Notice BVE FERC No. 21
NEP/V-148 Line England Power
Tiverton Tap NEP and Montaup UNTIL Costs are Recovered ER81-722-000
by Montaup
Support of Riverside Sub and 822 Line Blackstone and Narragansett 2 Year's Written Notice BVE ER88-400-000
NEPOOL Open Access Transmission Tariff
Original Sheet No. 241
Amended and Restated Blackstone and OSP Term of the Power ER89-69-000
Interconnection Agreement By Units 1 & 2 Contract
and Among Blackstone
Valley Electric and Ocean State Power
Contract for Firm Contract Service Mass Power/Montaup BECO 12/31/2013 ER93-624-000
(Wheeling) Mass Power to Comelec and Comelec 7/30/2008
BECO Comelec 7/30/2008
Contract for Firm Contract Service Altresco/Montaup 12/31/2011 ER93-623-000
(Wheeling) Altresco to Comelec and
BECO
Service Agreement (Wheeling) Cleary North Attleboro/Montaup LOU ER85-396-000
9cc to North Attleboro Contract Termination
Service Agreement (Wheeling) Cleary Hudson/Montaup LOU ER87-362-000
9cc to Hudson Contract Termination
Amendment to Contract Between Montaup Montaup/MMWEC June 30, 2001 ER87-531-000
and MMWEC (NYPA) Extended Monthly Through
October 31, 2003
Montaup Transmission Service Agreement PFD/NYPA June 30, 2001 ER87-615-000
Interconnection NEA to Blackstone's Blackstone/NEA Concurrent to Power ER92-207-000
Transmission System Agreement
Interconnection Agreement Between TMLP TMLP/Montaup Two Year's Written Notice E-9117
and Montaup or Until Cleary #9 is ER91-305-000
Reduced to Zero
Service Agreement Between Braintree TMLP/Braintree LOU or MEC Terminates Due ER85-390-000
and Montaup Wheeling Cleary 9cc to Inadequate Cap. on ER87-126-000
Service Agreement Between Hingham and Hingham/Braintree LOU or MEC Terminates Due ER93-137-000
Montaup Wheeling Cleary 9cc to Inadequate Cap. on ER87-126-000
Company's PTF
NEPOOL Open Access Transmission Tariff
Original Sheet No. 242
The United Illuminating Company ("UI")
Arrangement Parties to the Agreement UI and:
Wholesale Power Agreements
BECO Exchange BECO
(November 1, 1996, until terminated by parties)
BH Sale from NHHS BH
(November 1, 1996 through October 31, 1997)
Citizens Sale from NHHS Citizens
(November 1, 1996 through October 31, 1999)
UNITIL Purchased Power Agreement, from NHHS UNITIL
(November 1, 1996 through October 31, 2006)
Corridor Service Agreement (BHS#3) NU
(May 1, 1993 through October 31, 2005)
NU Exchange Agreement NU
(May 1, 1993 until terminated by parties)
PASNY System Purchase Agreement CMEEC
(March 1, 1990 through June 30, 2001)
Support Arrangements
Interim Substation Support Agreement, dated 8/24/1993 NU
(FERC Docket ER93-891-000)
Seabrook Transmission Support Agreement Joint Owners
Hydro-Quebec Phase I NEETCO
Hydro-Quebec Phase I VETCO
Hydro-Quebec Phase II NEH-TEL CO INC.
Hydro-Quebec Phase II NEH-T CORP (NHH)
Hydro-Quebec Phase II AC Facilities BECO
Hydro-Quebec Phase II AC Facilities NEP
Millstone Support Agreement NU
Black Pond Coke Works Transmission Lines NU
NEPOOL Open Access Transmission Tariff
Original Sheet No. 243
Bangor Hydro-Electric Company
Support Party
HQ Phase II AC BECO
HQ Phase II AC NEP
HQ Phase I NEETCO
HQ Phase I VETCO
HQ Phase II NEH-T Corp (NHH)
HQ Phase II NEH-TEL Co Inc
Orrington SS MEPCO
Wyman #4 (345KV) Sec 386 Joint Owners
Wyman #4 (115KV) 164-167 Joint Owners
Boston Edison Company Wheeling Contracts
Customer Type Expiration Date MWs
Altresco Contract 12/31/2011 29
Braintree PASNY 10/31/2003 3
Braintree Tariff - NEES CD 10/31/2004 10
Braintree Tariff - Cleary 9 Life of unit 2
Braintree LV-PTF-Canal Life of unit 25
Braintree LV-PTF-NH Yankee Life of Unit 7
Braintree LV-PTF-Hydro-Quebec 9/1/2000 2
Hingham PASNY 10/31/2003 2
Hingham Tariff-Cleary 9 Life of unit` 3
Hingham Tariff-Manchester Life of unit 2
Hingham LV-PTF-Potter Life of unit 2
Hingham LV-PTF-Stonybrook Life of Unit 23
NEPOOL Open Access Transmission Tariff
Original Sheet No. 244
Hingham LV-PTF-NH Yankee Life of unit 5
Hingham LV-PTF-Hydro-Quebec 9/1/2000 1
Hingham LV-PTF-Millstone 3 Life of unit 8
Hull PASNY 10/31/2003 1
Hull Tariff-Lawrence Life of unit 1
Hull LV-PTF-Millstone 3 Life of unit 2
Hull LV-PTF-CMP Life of unit 1
Hull LV-PTF-NH Yankee Life of unit 1
Hull LV-PTF-Hydro-Quebec 9/1/2000 1
Hull LV-PTF-Stonybrook Life of unit 7
Reading PASNY 10/31/2003 6
Reading Tariff-NEP CD 10/31/99 15
Reading Tariff-Norwalk Harbor 10/31/2005 9
Reading Tariff-Millstone 3 10/31/2005 3
Reading LV-PTF-Millstone 3 Life of unit 11
Reading LV-PTF-Stonybrook Life of unit 91
Reading LV-PTF-NH Yankee Life of unit 9
Reading LV-PTF-Hydro-Quebec 9/1/2003 3
Cambridge Canal Transfer Life of unit 42
Cambridge Yank Excess Life of unit 3
Cambridge LV-PTF-Canal Life of unit 58
EUA EHV-PTF-Potter 2 Life of unit 40
EUA LV-PTF-Potter 2 Life of unit 40
UI EHV-PTF-Mystic 7 Life of unit 100
North Attleboro EHV-PTF-Potter 2 Life of unit 5
NEPOOL Open Access Transmission Tariff
Original Sheet No. 245
North Attleboro LV-PTF-Potter 2 Life of unit 5
Belmont PASNY 10/31/2003 2
Concord PASNY 10/31/2003 2
NEP Tariff 10/01/1997 225
Wellesley PASNY 10/31/2003 2
Boston Edison Company Support Contracts
BECo Revenue:
Cambridge Station 402 3/31/1997
Cambridge Station 509 2004 or later
Com Elec Card Street Line 8/30/2001
Reading Radial Lines Life of unit
EUA Whitman Tap Life of unit
NEP Lines 255-2337,8 3 yr notice
NEP Mystic/Golden Hills 1999
NEP W.Medway Breaker 2003
NEP Line 201-502 2009
NEP Canal 1 Lines Life of unit
HQ Participants BECo HQ II AC Facilities 2020
CEC, EUA, NEP Stabilizer Line 2008
CEC, EUA Canal 2 Lines 2008
BECo Expense:
CMP Wyman 115/345kV 2005
Com Elec Line 355 2008
EUA Line 344 2008
NEPOOL Open Access Transmission Tariff
Original Sheet No. 246
Chester SVC 2020
NEP Sandy Pond-Tewksbury 2005
NEP M-139 Line 2015
NEP N-140 Line 2015
NEP HQ 11 AC Facilities 2020
NEP Station 90 (Golden Hills) 2017
Vermont Electric Company
VELCO 1991 Transmission Agreement FEU 246.
Central Vermont Public Service Corporation
- - Vermont Yankee (Bundled T&G)
Unitil, et al
Resale Service (R-12) FPC Tariff First Rev. Vol. I Rochester Electric L & P
T&D FERC Tariff, Original Vol. 3
Vermont Electric Coop./Lyndonville Elec. Dept./Village of Ludlow, Elec.
Dept./Village of Johnson Water & Light Dept./Village of Hyde Park Water & Light
Dept./Rochester EL&P/Woodsvilles Fire Dist. Water & LD/Reserve System Capacity
Service (RS-2) FERC No. 135
Connecticut Valley Elect. Co.
Network Service FERC Tariff 6 new Hampshire Electric Cooperative
CVEC Service FERC No. 12 Woodsville Fire District Water & Light Dept.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 247
Interconnection Agreement CVPS/Green Mountain Power
FERC ER94-35-00/Northern Loop Interconnection Agreement and the VELCO
Agreements with VELCO Participants known as the VELCO Transmission Agreement
and VELCO Participants Agreement.
MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY
("MMWEC")
MMWEC Phase I Intermediate Units Agreement for Joint Ownership, Construction
and Operation (and associated transmission)
Parties: Green Mountain Power; Village of Lyndonville, Vermont
Effective Date: October 1, 1977
Green Mountain Power Corporation ("GMP")
To the extent the Transmission Interconnection and Service Agreements between
GMP and the following entities require the use of the Y-25 69 kV line between
Bennington and Harriman, they will be Excepted Transaction Agreements:
Central Vermont Public Service Corporation
Washington Electric Cooperative
Vermont Electric Cooperative
Northfield Electric Department
Town of Readsboro Electric Light Department
Village of Hardwick Electric Department
Village of Jacksonville Electric Department
Village of Morrisville Water & Light Department
Village of Stowe Water & Light Department
Contested Arrangements over Ties
Transmission Allocation Agreement Among Vermont Electric Power Company, Inc.,
New England Power Company, The Connecticut Light and Power Company and Western
Massachusetts Electric Company dated January 6, 1989 (ER89-522-000, Effective
November 1, 1988).
The Participants have been unable to agree on the inclusion in this list of the
arrangements for use of the tie lines for transactions from New York, New
Brunswick and Hydro-Quebec beyond October 31, 1997, which is the end of the
next Capability Period, or on the effect of including such arrangements on the
list beyond that date. With respect to these tie-line arrangements, the
Participants have agreed to include such arrangements as Excepted Transaction
Agreements through October 31, 1997, and to seek Commission resolution of
whether such arrangements should be grandfathered consistent with Order No.
888. Further, the Participants agree that, until October 31, 1997, the use of
the lines under such tie-line arrangements will be firm service with equal
priority with other firm arrangements. This agreement is a compromise
solution to address an immediate concern and is without prejudice to any
Participant's rights to argue that further grandfathering of such tie-line
arrangements is inappropriate. The Participants have all reserved the right to
present arguments for or against continued inclusion of such tie-line
arrangements as Excepted Transactions Agreements after October 31,1997, without
violating their agreement to support acceptance by the Commission of the
Thirty-Third Agreement.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 248
EXHIBIT 1
HVDC Phase II Documents List
o Order Amending Authorization to Export Electric Energy to Canada,
NEPOOL
o Amendment to Presidential Permit PP-76 Authorizing VETCo to
Construct....Electric Transmission Facilities at the International Border
Between the United States and Canada.
o PJM-New England Hydro Transmission Service Agreement
o Phase II Boston Edison AC Facilities Support Agreement
o Phase II New England Power AC Facilities Support Agreement
o Preliminary Quebec Interconnection Support Agreement - Phase II
(Superseded)
o Phase II Maine Electric Power SVC Facilities Support Agreement
o Phase II Massachusetts Transmission Facilities Support Agreement
o Phase II New Hampshire Transmission Facilities Support Agreement
o Preliminary Vermont Support Agreement RE: Quebec Interconnection -
Phase II (Superseded)
o Equity Funding Agreement for New England Hydro-Transmission Corporation
o Equity Funding Agreement for New England Hydro-Transmission Electric
Company, Inc.
o Agreement Authorizing Execution of Phase II Firm Energy Contract
o Metallic Return Service Agreement Between New England Electric
Transmission Corporation and New England Hydro-Transmission Corporation
o Amendment to Agreement With Respect to Use of Quebec Interconnection
o Agreement Between VELCO and New England Hydro-Transmission Corporation
o LEASE Between New England Power and New England Hydro-Transmission
Electric Company, Inc.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 249
o LEASE Between New England Power and New England Hydro-Transmission
Corporation
o Phase II Vermont DMNRC Support Agreement
o Agreement Amending New England Power Pool Agreement
HVDC Phase I Documents List
o Order Authorizing the Exportation of Electric Energy to Canada
o Presidential Permit PP-76 Authorizing VETCo to Construct....Electric
Transmission Facilities at the International Border Between the United States
and Canada.
o Preliminary Quebec Interconnection Support Agreement, as Amended
o Phase I New Hampshire Transmission Facilities Support Agreement
o Agreement for Transmission Maintenance Service (VELCO-NEET)
o Phase I Vermont Transmission Line Support Agreement (and Amendments)
o Agreement Amending New England Power Pool Agreement
o Interconnection Agreement, Hydro-Quebec-NEPOOL Participants
o Energy Banking Agreement
o Energy Contract
o LEASE Between new England Power and New England Electric Transmission
Corporation
o Upper Development - Lower Development Transmission Line Support
Agreement, New England Electric Transmission Corporation and New England
Power Company.
o Agreement for Reinforcement and Improvement of New England Power
Company's Transmission System
o Equity Funding Agreement for New England Electric Transmission
Corporation
o Agreement With Respect to Use of Quebec Interconnection (and
amendments)
o Phase I Terminal Facilities Support Agreement
NEPOOL Open Access Transmission Tariff
Original Sheet No. 250
ATTACHMENT G-1
Agreements re Local Network Service
Notwithstanding any termination of the status as Excepted Transaction of the
transmission arrangements for the following agreements, the arrangements shall
continue to be excepted for their respective terms, from the requirement to pay
a Local Networks Service charge:
1. WMECO/NEP service to French King/Shelburne, Transmission Service
Agreement dated 3/15/94 and subsequently amended.
2. WMECO/NEP service to SBNGB, Transmission Service Agreement dated
2/23/93 and subsequently amended.
3. Cambridge/BECO support agreements dated 10/1/65 and 1/1/75.
4. Six UI substations, UI/NU Agreement dated 8/24/93.
5. CMP/MEW/NU Agreement dated as of May 16, 1994.
6. CMEEC/NU Agreement dated 11/29/90.
7. Chicopee/NU Agreement dated 11/1/95.
8. South Hadley/NU Agreement dated 11/1/95.
9. Westfield/NU Agreement dated 1/1/95.
10. Unitil/NU Agreement dated 11/1/92.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 251
ATTACHMENT H
Form of
Network Operating Agreement
1.0 Preamble
This Network Operating Agreement is entered into by and between the NEPOOL
Participants (the "Transmission Provider") acting through __________ (the
"System Operator") and ____________ (the "Transmission Customer") as an
implementing agreement for the NEPOOL Open Access Transmission Tariff and is
subject to and in accordance with the NEPOOL Open Access Tariff. All
definitions and other terms and conditions of the NEPOOL Open Access
Transmission Tariff are incorporated herein by reference. The Transmission
Provider may designate a satellite dispatch center and/or one or more
Participants to act for it under this Agreement.
2.0 General Terms and Conditions
The Transmission Provider agrees to provide transmission service to the
Transmission Customer's equipment or facilities, etc., subject to the
Transmission Customer operating its facilities in accordance with applicable
NEPOOL and NPCC criteria, rules, standards, procedures, or guidelines as they
may be adopted and/or amended from time to time. In addition to the
provisions defined in those documents, service to the Transmission Customer's
equipment or facilities, etc. is provided subject to the following specified
terms and conditions.
2.1 Electrical Supply: The electrical supply to the Point(s) of Delivery
shall be in the form of three-phase sixty-hertz alternating current at
a voltage class determined by mutual agreement of the parties.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 252
2.2 Coordination of Operations: The Transmission Provider shall consult the
Transmission Customer and/or its Designated Agent regarding timing of
scheduled maintenance of the Transmission System and the Transmission
Provider shall schedule any shutdown or withdrawal of facilities to
coincide with the Transmission Customer's equipment or facilities, etc.
scheduled outages of the Transmission Customer's resources, to the
extent practicable. In the event the Transmission Provider is unable
to schedule the shutdown of its facilities to coincide with
Transmission Customer's schedule, the Transmission Provider shall
notify the Transmission Customer and/or its Designated Agent, in
advance if feasible, of reasons for the shutdown, the time scheduled
for it to take place, and its expected duration. The Transmission
Provider shall use due diligence to resume delivery of electric power
as quickly as possible.
2.3 Reporting Obligations: The Transmission Customer shall be responsible
for all information required by NPCC or NEPOOL. The Transmission
Customer shall respond promptly and completely to the Transmission
Provider's reasonable requests for information, including but not
limited to, data necessary for operations, maintenance, regulatory
requirements and analysis. In particular, that information may
include:
For Network Loads:
- 10-year coincident, seasonal (summer, winter) Annual Peak Load
forecast, aggregated by geographic distribution area
- Load Power Factor performance by geographic distribution area
- Underfrequency load shedding capability aggregated by geographic
distribution area
NEPOOL Open Access Transmission Tariff
Original Sheet No. 253
- Block load shedding capability aggregated by geographic
distribution area
- Disturbance/interruption reports
- Protection system setting conformance
- Protection system testing and maintenance conformance
- Planned changes to protection systems
- Metering testing and maintenance conformance
- Planned changes in transformation capability
- Conformance to harmonic and voltage fluctuation limits
- Dead station tripping conformance
- Voltage reduction capability conformance
For Network Resources and interconnected generators:
- 10-year forecast of generation capacity retirements and
additions, if applicable
- Generator reactive capability verification
- Generator underfrequency relaying conformance
- Protection system testing and maintenance conformance
- Planned changes to protection system
- Planned changes to generation parameters
- Metering testing and maintenance conformance
Failure by the Transmission Customer to do so may constitute default.
Delinquency in responding by the Transmission Customer will result in a
fine as described in 5.0 below.
The Transmission Customer shall supply accurate and reliable
information to the system operators regarding metered values for MW,
MVAR, volt, amp, frequency, breaker status indication, and all other
information deemed necessary by the Transmission Provider for reliable
operation. Information shall be gathered for electronic communication
using one or more of the following: supervisory control and data
acquisition (SCADA), remote terminal unit (RTU) equipment, and remote
NEPOOL Open Access Transmission Tariff
Original Sheet No. 254
access pulse recorders (RAPR). All equipment used for metering, SCADA,
RTU, RAPR, and communications must be approved by the Transmission
Provider.
2.4 Operational Obligations: The Transmission Customer shall request
permission from the system operators prior to opening and/or closing
circuit breakers per applicable switching and operating procedures.
The Transmission Customer shall carry out all switching orders from the
Transmission Provider, the System Operator or the Transmission
Provider's designee in a timely manner.
The Transmission Customer shall balance the load at the Point(s) of
Delivery such that the difference in the individual phase currents are
acceptable to the Transmission Provider.
The Transmission Customer's equipment shall conform with harmonic
distortion and voltage fluctuation standards of the Transmission
Provider.
The Transmission Customer's equipment must comply with all
environmental requirements to the extent they impact the operation of
the Transmission Provider's system.
The Transmission Customer shall operate all of its equipment and
facilities connected to the Transmission Provider's system in a safe
and efficient manner and in accordance with manufacturers'
recommendations, Good Utility Practice, applicable regulations, and
requirements of the Transmission Provider, the System Operator, and
NPCC.
2.5 Notice of Transmission Service Interruptions: If at any time, in the
reasonable exercise of the system operator's judgement, operation of
the Transmission Customer's equipment adversely affects the quality of
service or interferes with the safe and reliable operation of the
system, the Transmission Provider
NEPOOL Open Access Transmission Tariff
Original Sheet No. 255
may discontinue transmission service until the condition has
been corrected. Unless the system operators perceive that an
emergency exists or the risk of one is imminent, the system
operators shall give the Transmission Customer and/or its
Designated Agent reasonable notice of its intention to
discontinue transmission service and, where practical, allow
suitable time for the Transmission Customer to remove the
interfering condition. The Transmission Provider's judgement
with regard to the discontinuance of service under this
paragraph shall be made in accordance with Good Utility
Practice. In the case of such discontinuance, the Transmission
Provider shall immediately confer with the Transmission Customer
regarding the conditions causing such discontinuance and its
recommendation concerning timely correction thereof. Failure by
a Customer to shed load would be subject to an additional charge
of 10<cent>/kWh for every kWh the Customer failed to shed.
2.6 Access and Control: Properly accredited representatives of the
Transmission Provider shall at all reasonable times have access to the
Transmission Customer's facilities to make reasonable inspections and
obtain information required in connection with this Tariff. Such
representatives shall make themselves known to the Transmission
Customer's personnel, state the object of their visit, and conduct
themselves in a manner that will not interfere with the construction or
operation of the Transmission Customer's facilities. The Transmission
Provider or its designee will have control such that it may open or
close the circuit breaker or disconnect and place safety grounds at the
Point(s) of Delivery, or at the station, if the Point(s) of Delivery is
remote from the station.
2.7 Point(s) of Delivery: Network Integration Transmission Service will be
delivered by the
NEPOOL Open Access Transmission Tariff
Original Sheet No. 256
Transmission Provider at the Point(s) of Delivery as specified
in the customer's Service Agreement, and as amended from time to
time. Each Point of Delivery shall have a unique identifier,
meter location, meter number, metered voltage, terms on meter
compensation and, the actual, or if not currently in service,
the projected in-service year.
2.8 Maintenance of Equipment: The Transmission Customer shall maintain all
of its equipment and facilities connected to the Transmission
Provider's system in a safe and efficient manner and in accordance with
manufacturers' recommendations, Good Utility Practice, applicable
regulations, and requirements of NEPOOL, and NPCC.
The Transmission Provider may request that the Transmission Customer
test, calibrate, verify or validate the data link, metering, data
acquisition, transmission, protective, or other equipment or software
consistent with the Transmission Customer's routine obligation to
maintain its equipment and facilities or for the purposes of trouble
shooting problems on the network facilities. The Transmission
Customer will be responsible for the cost to test, calibrate, verify or
validate the equipment or software.
The Transmission Provider shall have the right to inspect the tests,
calibrations, verifications and validations of the data link, metering,
data acquisition, transmission, protective, or other equipment or other
software connected to the Transmission Provider's system.
The Transmission Customer, at the Transmission Provider's request,
shall supply the Transmission Provider with a copy of the installation,
test, and calibration records of the data link, metering, data
acquisition, transmission, protective or other equipment or software
connected to the Transmission Provider's system.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 257
The Transmission Provider shall have the right, at the Transmission
Customer's expense, to monitor the factory acceptance test, the field
acceptance test, and the installation of any metering, data
acquisition, transmission, protective or other equipment or software
connected to the Transmission Provider's system.
2.9 Emergency System Operations: The Transmission Customer's equipment and
facilities, etc. shall be subject to all applicable emergency operation
standards required of and by the Transmission Provider to operate in an
interconnected transmission network.
The Transmission Provider reserves the right to have the system
operators take whatever actions or inactions they deem necessary during
emergency operating conditions to: (i) preserve the integrity of the
Transmission System, (ii) limit or prevent damage, (iii) expedite
restoration of service, or (iv) preserve public safety.
2.10 Cost Responsibility: The Transmission Customer shall be responsible for
all costs incurred by the Transmission Provider relative to the
Transmission Customer's facilities. Some costs may be allocated to
several Transmission Customers. If the method for allocating costs is
not clearly defined, then the method for allocation will be at the
Transmission Provider's discretion.
3.0 Service For a Network Resource
The following Terms and Conditions are specific to Service for a generator
Network Resource.
3.1 Voltage or Reactive Control Requirements: Unless directed otherwise,
the Transmission Customer will operate its existing interconnected
generation facility(ies) with an automatic voltage regulator(s). The
voltage regulator will control
NEPOOL Open Access Transmission Tariff
Original Sheet No. 258
voltage at the Point(s) of Receipt consistent with the range of
voltage scheduled by the Transmission Provider, the Transmission
Provider's agent, NEPEX, or REMVEC.
At the discretion of the Transmission Provider, the Transmission
Customer may be directed to deactivate the automatic voltage regulator
and to supply reactive power per a schedule provided by the
Transmission Provider.
If the Transmission Customer has not installed capacity sufficient to
operate its generation facility consistent with recommendations of the
Transmission Provider resulting from the System Impact and Facilities
Studies or fails to operate at such capacity, the Transmission Provider
may install, at the Transmission Customer's expense, reactive
compensation equipment necessary to ensure the proper voltage
or reactive supply at the Point(s) of Receipt.
3.2 Station Service: When the Transmission Customer's generation facility
is producing electricity, the Customer must supply its own station
service power. If and when the Transmission Customer's generation
facility is not producing electricity, the Customer must obtain station
service capacity and energy from another supplier or another of its
resources.
3.3 Protection Requirements: Protection requirements are defined in NEPOOL
and NPCC documents as may be adopted or amended from time to time.
3.4 Operational Obligations The Transmission Provider may require the
generator to be equipped for Automatic Generation Control (AGC). The
Transmission Customer will be responsible for all costs associated with
installing and maintaining an AGC system on the generator(s).
NEPOOL Open Access Transmission Tariff
Original Sheet No. 259
The Transmission Provider retains the right to require reduced
generation at times when system conditions present transmission
restrictions or otherwise adversely affect the Transmission Provider's
other customers. The Transmission Provider will use due diligence to
resolve the problems to allow the generator to return to the operating
level prior to the Transmission Provider's notice to reduce generation.
All operations (including start-up, shutdown and determination of
hourly generation) will be coordinated by the Transmission Provider.
3.5 Coordination of Operations: The Transmission Customer shall furnish the
Transmission Provider with generator annual maintenance schedules,
advise the Transmission Provider if its Network Resource is capable of
participation in system restoration and/or if it has black start
capability.
The Transmission Provider reserves the right to specify turbine and/or
generator control (e.g., droop) settings as determined by the System
Impact or Facilities Study or subsequent studies. The Transmission
Customer agrees to comply with such specifications by the Transmission
Provider at the Transmission Customer's expense.
If the generator is not dispatchable by the Transmission Provider, the
Transmission Customer shall notify the Transmission Provider at least
48 hours in advance of its intent to take its resource temporarily off-
line and its intent to resume generation. In circumstances such as
forced outages, the Transmission Customer shall notify the Transmission
Provider as promptly as possible of the Network Resource's temporary
interruption of generation and/or transmission.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 260
4.0 Service for Delivery to Load
The following Terms and Conditions are specific to Service for Delivery to
Load.
4.1 Power Factor Requirement: The Transmission Customer agrees to maintain
an overall Load Power Factor and reactive power supply within
predefined sub-areas as measured at the Point(s) of Delivery within
ranges specified by the Transmission Provider or NEPOOL criteria, rules
and standards which identify the power factor levels that must be
maintained throughout the applicable sub-area for each anticipated
level of total NEPOOL load. The Transmission Customer agrees to
maintain Load Power Factor and reactive power requirements within the
range specified by the Transmission Provider for the sub-area based on
total NEPOOL load during that hour. NEPOOL may revise the power factor
limits required from time to time. If the Transmission Customer lacks
the capability to maintain the Load Power Factor within the ranges
specified, the Transmission Provider may:
a) install, at the Transmission Customer's expense, reactive
compensation equipment necessary to ensure proper load power
factor at the Point(s) of Delivery;
b) charge the Transmission Customer per the Tariff Schedule OCC.
4.2 Protection Requirements: The Transmission Customer's relay and
protection systems must comply with all applicable NEPOOL and NPCC
criteria, rules, procedures, guidelines, standards or requirements as
may be adopted or amended from time to time.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 261
4.3 Operational Obligations: The Transmission Customer shall be responsible
for operating and maintaining security of its electric system in a
manner that avoids adverse impact to the Transmission Provider's or
others' interconnected systems and complies with all applicable NEPOOL,
and NPCC operating criteria, rules, procedures, guidelines and
interconnection standards as may be amended or adopted from time to
time. These actions include, but are not limited to:
- Voltage Reduction Load Shedding
- Underfrequency Load Shedding
- Block Load Shedding
- Dead Station Tripping
- Transferring Load Between Point(s) of Delivery
- Implementing Voluntary Load Reductions Including Interruptible
Customers
- Starting Stand-by Generation
- Permitting Transmission Provider Controlled Service Restoration
Following Supply Delivery Contingencies on Transmission Provider
Facilities
5.0 Default If the Transmission Customer's equipment fails to perform
consistent with the Terms and Conditions of this agreement, then the
Transmission Customer will be deemed to be in default and service may
be suspended immediately and subject to a termination through a FERC
filing. If the Transmission Customer fails to provide the information
required in Section 2.3 in a timely manner, the Transmission Provider
shall be permitted to assess a penalty of $100 per day until such
information is provided in its entirety to the Transmission Provider.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 262
The Parties whose authorizing signatures appear below warrant that they will
abide by the foregoing terms and conditions.
____________________ ____________________
NEPOOL Participants (Transmission Customers)
By (System Operator)
____________________ ____________________
By: By:
____________________ ____________________
Title: Title:
____________________ ____________________
Date: Date:
NEPOOL Open Access Transmission Tariff
Original Sheet No. 263
ATTACHMENT I
Form of
System Impact Study Agreement
This Agreement dated __________, is entered into by (the
"Transmission Customer") and the NEPOOL Participants (the "Transmission
Provider") acting through (the "System Operator"), for the purpose
of setting forth the terms, conditions and costs for conducting a System Impact
Study relative to ,in accordance with the NEPOOL Open Access
Transmission Tariff ("Tariff"). All definitions and other terms and conditions
of that Tariff are incorporated herein by reference. The Transmission Provider
may designate one or more Participants or the System Operator to act for it
under this Agreement.
1. The Transmission Customer agrees to provide, in a timely and complete
manner, the information and technical data specified in Exhibit 1 to
this Agreement and reasonably necessary for the Transmission Provider
to conduct the System Impact study. The Transmission Customer
understands that it must provide all such information and data
prior to the Transmission Provider's commencement of the Study. Such
information and technical data is specified in Exhibit 1 to this
Agreement.
2. All work pertaining to the System Impact Study that is the subject of
this Agreement will be approved and coordinated only through designated
and authorized representatives of the Transmission Provider and the
Transmission Customer. Each party shall inform the other in writing of
its designated and authorized representative.
3. The Transmission Provider will advise the Transmission Customer of any
additional information as it may in its sole reasonable discretion deem
necessary to complete the study. Any such additional information shall
be obtained only if
NEPOOL Open Access Transmission Tariff
Original Sheet No. 264
required by Good Utility Practice and shall be subject to the
Transmission Customer's consent to proceed, such consent not to be
unreasonably withheld.
4. The Transmission Provider contemplates that it will require _________
to complete the System Impact Study. Upon completion of the Study by
the Transmission Provider, the Transmission Provider will provide a
report to the Transmission Customer based on the information provided
and developed as a result of this effort. If, upon review of the
Study results, the Transmission Customer decides to pursue ,
the Transmission Provider will, at the Transmission Customer's
direction, tender a Facilities Study Agreement within thirty (30) days.
The System Impact and Facilities Studies, together with any additional
studies contemplated in Paragraph 3, shall form the basis for the
Transmission Customer's proposed use of the Transmission Provider's
transmission system and shall be furthermore utilized in obtaining
necessary third-party approvals of any interconnection facilities and
requested transmission services. The Transmission Customer understands
and acknowledges that any use of study results by the Transmission
Customer or its agents, whether in preliminary or final form, prior to
NEPOOL l8.4 approval, is completely at the Transmission Customer's risk
and that the Transmission Provider will not guarantee or warrant the
completeness, validity or utility of study results prior to NEPOOL 18.4
approval.
5. The estimated costs contained within this Agreement are the
Transmission Provider's good faith estimate of its costs to perform the
System Impact Study contemplated by this Agreement. The Transmission
Provider's estimates do not include any estimates for wheeling charges
that may be associated with the transmission of facility output to
third parties or with rates for station service. The actual costs
charged to the Transmission Customer by the Transmission Provider may
change as set forth in this Agreement. Prepayment will be required for
all study, analysis, and review work performed by the Transmission
Provider or its
NEPOOL Open Access Transmission Tariff
Original Sheet No. 265
Designated Agent, all of which will be billed by the Transmission
provider to the Transmission Customer in accordance with Paragraph 6 of
this Agreement.
6. The payment required is $________ from the Transmission Customer to the
Transmission Provider for the primary system analysis, coordination,
and monitoring of the System Impact Study. The Transmission Provider
will, in writing, advise the Transmission Customer in advance of any
cost increases for work to be performed if total amount increases by
10% or more. Any such changes to the Transmission Provider's costs for
the study work shall be subject to the Transmission Customer's
consent, such consent not to be unreasonably withheld. The
Transmission Customer shall, within thirty (30) days of the
Transmission Provider's notice of increase, either authorize such
increases and make payment in the amount set forth in such notice, or
the Transmission Provider will suspend the System Impact Study and this
Agreement will terminate if so permitted by the Federal Energy
Regulatory Commission.
In the event this Agreement is terminated for any reason, the
Transmission Provider shall refund to the Transmission Customer the
portion of the above credit or any subsequent payment to the
Transmission Provider by the Transmission Customer that the
Transmission provider did not expend in performing its obligations
under this Agreement. Any additional billings under this Agreement
shall be subject to an interest charge computed in accordance with the
provisions of the Transmission Provider's open access tariff. Payments
for work performed shall not be subject to refunding except in
accordance with Paragraph 7 below.
7. If the actual costs for the work exceed prepaid estimated costs, the
Transmission Customer shall make payment to the Transmission Provider
for such actual costs within thirty(30) days of the date of the
Transmission Provider's invoice for such costs. If the actual costs
for the work are less than those prepaid, the Transmission Provider
will credit such difference toward Transmission Provider costs
NEPOOL Open Access Transmission Tariff
Original Sheet No. 266
unbilled, or in the event there will be no additional billed expenses,
the amount of the overpayment will be returned to the Transmission
Customer with interest computed as stated in Paragraph 6 of this
Agreement, from the date of reconciliation.
8. Nothing in this Agreement shall be interpreted to give the Transmission
Customer immediate rights to wheel over or interconnect with the
Transmission Provider's transmission or distribution system. Such
rights shall be provided for under separate agreement and in accordance
with the Transmission Provider's open access tariff.
9. Within one (1) year following the Transmission Provider's issuance of a
final bill under this Agreement, the Transmission Customer shall have
the right to audit the Transmission Provider's accounts and records at
the offices where such accounts and records are maintained, during
normal business hours; provided that appropriate notice shall have been
given prior to any audit and provided that the audit shall be limited
to those portions of such accounts and records that relate to service
under this Agreement. The Transmission Provider reserves the right to
assess a reasonable fee to compensate for the use of its personnel time
in assisting any inspection or audit of its books, records or accounts
by the Transmission Customer or its Designated Agent.
10. Each party agrees to indemnify and hold the other party and its Related
Persons of each of them (collectively "Affiliates") harmless from and
against any and all damages, costs (including attorney's fees), fines,
penalties and liabilities, in tort, contract, or otherwise
(collectively "Liabilities") resulting from claims of third parties
arising, or claimed to have arisen as a result of any acts or omissions
of either party under this Agreement. Each party hereby waives
recourse against the other party and its Related Persons for,
and releases the other party and its Related Persons from, any and all
Liabilities for or arising from damage to its property due to a
performance under this
NEPOOL Open Access Transmission Tariff
Original Sheet No. 267
Agreement by such other party except in cases of negligence or
intentional wrongdoing by either party.
11. If either party materially breaches any of its covenants hereunder, the
other party may terminate this Agreement by filing a notice of intent
to terminate with the Federal Energy Regulatory Commission and serving
notice of same on the other party to this Agreement. This remedy is in
addition to any other remedies available to the injured party.
12. This Agreement shall be construed and governed in accordance with the
laws of the State of Connecticut and with Part II of the Federal Power
Act, 16 U.S.C. <section><section>824d et seq., and with Part 35 of
Title 18 of the Code of Federal Regulations, l8 C.F.R.
<section><section>35 et seq.
13. All amendments to this Agreement shall be in written form executed by
both parties.
14. The terms and conditions of this Agreement shall be binding on the
successors and assigns of either party.
15. This Agreement will remain in effect for a period of up to two years
from its effective date as permitted by the Federal Energy Regulatory
Commission, and is subject to extension by mutual agreement. Either
party may terminate this Agreement by thirty (30) days' notice except
as is otherwise provided herein. If this Agreement expires by
its own terms, it shall be the Transmission Provider's responsibility
to make such filing.
Transmission Customer: NEPOOL Participants
By (System Operator)
Name: Name:_________________________
Title:____________________ Title:
Date: Date:
NEPOOL Open Access Transmission Tariff
Original Sheet No. 268
EXHIBIT 1
Information to be Provided to the Transmission Provider
by the Transmission Customer for System Impact Study
1.0 Facilities Identification
1.1 Requested capability in MW and MVA; summer and winter
1.2 Site location and plot plan with clear geographical references
1.3 Preliminary one-line diagram showing major equipment and extent
of Transmission Customer ownership
1.4 Auxiliary power system requirements
1.5 Back-up facilities such as standby generation or alternate supply
sources
2.0 Major Equipment
2.1 Power transformer(s): rated voltage, MVA and BIL of each
winding, LTC and or NLTC taps and range, Z{1} (positive sequence)
and Z{o} (zero sequence) impedances, and winding connections.
Provide normal, long-time emergency and short-time emergency
thermal ratings.
2.2 Generator(s): rated MVA, speed and maximum and minimum MW output,
reactive capability curves, open circuit saturation curve, power
factor (V) curve, response (ramp) rates, H (inertia), D (speed
damping), short circuit ratio, X{1} (leakage), X{2}:(negative
sequence), and X{o} (zero sequence) reactances and other data:
NEPOOL Open Access Transmission Tariff
Original Sheet No. 269
Direct Quadrature
Axis Axis
Saturated synchronous reactance X{dv} X{qv}
unsaturated synchronous reactance X{di} X{qt}
saturated transient reactance X'{dv} X'{qv}
unsaturated transient reactance X'{di} X'{qi}
saturated subtransient reactance X"{dv} X"{qv}
unsaturated subtransient reactance X"{di} X"{qi}
transient open-circuit time T'{do} T'{qo}
constant
transient short-circuit time T"{d} T"{q}
constant
subtransient open-circuit time T"{do} T"{qo}
constant
subtransient short-circuit time T"{d } T"{q}
constant
2.3 Excitation system, power system stabilizer and governor:
manufacturer's data in sufficient detail to allow modeling in
transient stability simulations.
2.4 Prime mover: manufacturer's data in sufficient detail to allow
modeling in transient stability simulations, if determined
necessary.
2.5 Busses: rated voltage and ampacity (normal, long-time emergency
and short-time emergency thermal ratings), conductor type and
configuration.
2.6 Transmission lines: overhead line or underground cable rated
voltage and ampacity (normal, long-time emergency and short-time
emergency thermal ratings), Z{1} (positive sequence) and Z{o}
(zero sequence) impedances, conductor type, configuration, length
and termination points.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 270
2.7 Motors greater than 150 kW 3-phase or 50 kW single-phase: type
(induction or synchronous), rated hp, speed, voltage and current,
efficiency and power factor at 1/2, 3/4 and full load, stator
resistance and reactance, rotor resistance and reactance,
magnetizing reactance.
2.8 Circuit breakers and switches: rated voltage, interrupting time
and continuous, interrupting and momentary currents. Provide
normal, long-time emergency and short-time emergency thermal
ratings.
2.9 Protective relays and systems: ANSI function number, quantity
manufacturer's catalog number, range, descriptive bulletin,
tripping diagram and three-line diagram showing AC connections to
all relaying and metering.
2.10 CT's and VT's: location, quantity, rated voltage, current and
ratio.
2.11 Surge protective devices: location, quantity, rated voltage and
energy capability.
3.0 Other
3.1 Additional data reasonably necessary to perform the System Impact
Study will be provided by the Transmission Customer as requested
by the Transmission Provider.
3.2 The Transmission Provider reserves the right to require that the
Transmission Customer accept the use in the study of specific
equipment settings or characteristics necessary to meet NEPOOL
and NPCC criteria and standards.
NEPOOL Open Access Transmission Tariff
Original Sheet No. 271
ATTACHMENT J
Form of
Facilities Study Agreement
This agreement dated ________, is entered into by ____________ (the
Transmission Customer) and the NEPOOL Participants (the "Transmission
Operator") acting through the ____________ ("System Provider"), for the purpose
of setting
forth the terms, conditions and costs for conducting a Facilities Study
Agreement relative to ____________________, in accordance with the NEPOOL Open
Access Transmission Tariff ("Tariff"). All definitions and other terms and
conditions of that Tariff are incorporated herein by reference. The
Transmission Provider may designate one or more Participants or the System
Operator to act for it under this Agreement. The Facilities Study will
determine the detailed engineering, design and cost of the facilities necessary
to satisfy the Transmission Customer's request for service over the NEPOOL
Transmission System.
1. The Transmission customer agrees to provide, in a timely complete
manner, the information and technical data specified in Exhibit 1 to
this Agreement and reasonably necessary for the Transmission Provider
to conduct the Facilities Study. Where such information and technical
data was provided for the System Impact Study, it should be reviewed
and updated with current information, as required.
2. All work pertaining to the Facilities Study that is the subject of this
Agreement will be approved and coordinated only through designated and
authorized representatives of the Transmission Provider and the
Transmission Customer. Each party shall inform the other in writing of
its designated and authorized representative.
3. The Transmission Provider will advise the Transmission Customer of
additional information as may be reasonably deemed necessary to
complete the study by the Transmission
NEPOOL Open Access Transmission Tariff
Original Sheet No. 272
Provider. Any such additional information shall be obtained only if
required by Good Utility Practice and shall be subject to the
Transmission Customer's consent to proceed, such consent not to be
unreasonably withheld.
4. The Transmission Provider contemplates that it will require ____ days
to complete the Facilities Study. Upon completion of the study by the
Transmission Provider, the Transmission Provider will provide a report
to the Transmission Customer based on the information provided and
developed as a result of this effort. If, upon review of the
study results, the Transmission Customer decides to pursue its
transmission service request, the Transmission Customer must sign a
supplemental Service Agreement with the Transmission Provider under the
Tariff. The System Impact and Facilities Studies, together with any
additional studies contemplated in Paragraph 3, shall form the basis
for the Transmission Customer's proposed use of the Transmission
Provider's Transmission System and shall be furthermore utilized in
obtaining necessary third-party approvals of any facilities and
requested transmission services. The Transmission Customer understands
and acknowledges that any use of the study results by the Transmission
Customer or its agents whether in preliminary or final form, prior to
NEPOOL 18.4 approval, is completely at the Transmission Customer's risk
and that the Transmission provider will not guarantee or warrant the
completeness, validity or utility of the study results prior to NEPOOL
18.4 approval.
5. The estimated costs contained within this Agreement are the
Transmission provider's good faith estimate of its costs to perform the
Facilities Study contemplated by this Agreement. The Transmission
Provider's estimates do not include any estimates for wheeling charges
that may be associated with the transmission of facility output to
third parties or with rates for station service. The actual costs
charged to the Transmission Customer by the Transmission Provider may
change as set forth in this Agreement. Prepayment will be required for
all study, analysis, and review work performed by the Transmission
Provider's or its Designated Agent's
NEPOOL Open Access Transmission Tariff
Original Sheet No. 273
personnel, all of which will be billed by the Transmission Provider to
the Transmission Customer in accordance with Paragraph 6 of this
Agreement.
6. The payment required is $______________ from the Transmission Customer
to the Transmission Provider for the primary system analysis,
coordination, and monitoring of the Facilities Study to be performed by
the Transmission Provider for the Transmission Customer's requested
service. The Transmission Provider will, in writing, advise the
Transmission Customer in advance of any cost increases for work to be
performed if the total amount increases by 10% or more. Any such
changes to the Transmission Provider's costs for the study work to be
performed shall be subject to the Transmission Customer's consent, such
consent not to be unreasonably withheld. The Transmission Customer
shall, within thirty (30) days of the Transmission Provider's notice of
increase, either authorize such increases and make payment in the
amount set forth in such notice, or the Transmission Provider will
suspend the study and this Agreement will terminate if so permitted by
the Federal Energy Regulatory Commission.
In the event this Agreement is terminated for any reason, the
Transmission Provider shall refund to the Transmission Customer the
portion of the above credit or any subsequent payment to the
Transmission Provider by the Transmission Customer that the
Transmission Provider did not expend in performing its obligations
under this Agreement. Any additional billings under this Agreement
shall be subject to an interest charge computed in accordance with the
provisions of the Transmission Provider's appropriate transmission
tariff. Payments for work performed shall not be subject to
refunding except in accordance with Paragraph 7 below.
7. If the actual costs for the work exceed prepaid estimated costs, the
Transmission Customer shall make payment to the Transmission Provider
for such actual costs within thirty (30) days of the date of the
Transmission Provider's invoice
NEPOOL Open Access Transmission Tariff
Original Sheet No. 274
for such costs. If the actual costs for the work are less than that
prepaid, the Transmission Provider will credit such difference toward
Transmission Provider's costs unbilled, or in the event there will be
no additional billed expenses, the amount of the overpayment will be
returned to the Transmission Customer with interest computed in
accordance with the provisions of the Tariff.
8. Nothing in this Agreement shall be interpreted to give the Transmission
Customer immediate rights to interconnect to or wheel over the NEPOOL
Transmission System. Such rights shall be provided for under separate
agreement.
9. Within one (1) year following the Transmission Provider's issuance of a
final bill under this Agreement, the Transmission Customer shall have
the right to audit the Transmission Provider's accounts and records at
the offices where such accounts and records are maintained during
normal business hours; provided that appropriate notice shall have been
given prior to any audit and provided that the audit shall be limited
to those portions of such accounts and records that relate to service
under this Agreement. The Transmission provider reserves the right to
assess a reasonable fee to compensate for the use of its personnel time
in assisting any inspection or audit of its books, records or
accounts by the Transmission Customer or its Designated Agent.
10. Each party agrees to indemnify and hold the other party and its Related
Persons harmless from and against any and all damages, costs (including
attorney's fees), fines, penalties and liabilities, in tort, contract,
or otherwise (collectively "Liabilities") resulting from claims of
third parties arising, or claimed to have arisen as a result of any
acts or omissions of either party under this Agreement. Each party
hereby waives recourse against the other party and its Related Persons
for, and releases the other party and its Related Persons from, any and
all Liabilities for or
NEPOOL Open Access Transmission Tariff
Original Sheet No. 275
arising from damage to its property due to performance under this Agreement by
such other party except in cases of negligence or intentional wrongdoing by
either party.
11. If any party materially breaches any of its covenants hereunder, the
other party may terminate this Agreement by filing a notice of intent
to terminate with the Federal Energy Regulatory Commission and serving
notice of same on the other party to this Agreement. This remedy is in
addition to any other remedies available for the injured party.
12. This agreement shall be construed and governed in accordance with the
laws of the State of Connecticut and with Part II of the Federal Power
Act, 16 U.S.C. <section><section>824d et seq., and with Part 35 of
Title 18 of the Code of Federal Regulations, l8 C.F.R.
<section><section>35 et seq.
13. All amendments to this Agreement shall be in written form executed by
both parties.
14. The terms and conditions of this Agreement shall be binding on the
successors and assigns of either party.
15. This Agreement will remain in effect for a period of two years from its
effective date as permitted by the Federal Energy Regulatory
Commission, and is subject to extension by mutual agreement.
Either party may terminate this Agreement by thirty (30) days' notice
except as is otherwise provided herein. If this Agreement expires by
its own terms, it shall be the Transmission Provider's responsibility
to make such filing.
Transmission Customer: NEPOOL Participants
By (System Operator)
Name:______________________ Name:_____________________
Title:_____________________ Title:____________________
Date:______________________ Date:_____________________
INTERIM INDEPENDENT SYSTEM OPERATOR AGREEMENT
This Interim Independent System Operator Agreement (this "Agreement")
is made and entered into this ______ day of _________, 1997, by and between the
entities which are the participants in the New England Power Pool pursuant to
the Restated New England Power Pool Agreement dated as of September 1, 1971, as
amended and restated to date, acting herein by and through the NEPOOL
Management Committee (collectively, the "NEPOOL Participants" or "NEPOOL"), on
the one hand, and the New England ISO Corporation (the "ISO"), on the other
(each a "Party" and, together, the "Parties").
Whereas, the NEPOOL Participants own and currently operate facilities
for the generation and transmission of wholesale electric power, and/or are
engaged in the competitive wholesale electricity market in New England; and
Whereas, NEPOOL currently coordinates and directs the operation of the
System through a mechanism of central dispatch in order to attain maximum
practicable economy consistent with proper standards of reliability; and
Whereas, NEPOOL desires to transfer to the ISO responsibility for,
among other things, direction and control of the operation of the System
consistent with proper standards of reliability, administration of NEPOOL's
open-access transmission tariff and administration of a power exchange,
consistent with the requirements of the Federal Energy Regulatory Commission;
and
Whereas, NEPOOL further desires to establish a mechanism for funding
the future operations of the ISO through the imposition of certain fees on the
services provided by the ISO;
Whereas, in order to begin such transition, NEPOOL and the ISO desire
to enter into this Agreement;
Now, therefore, NEPOOL and the ISO, each in consideration of the mutual
agreements set forth herein, agree as follows.
1. PURPOSE
1.1 Interim Agreement. The purpose of this Agreement is to set
forth the responsibilities and authority of the ISO and the services to
be furnished to NEPOOL by the ISO, including without limitation billing
and planning services, in connection with the transfer to the ISO of
responsibility for the operation of the NEPOOL Control Center
as the control center operator for the NEPOOL Control Area and the
administration of the transmission and market arrangements under the
Tariff and the NEPOOL Agreement.
1.2 Final ISO Agreement. The entering into of this Agreement by the
ISO shall be authorized by the ISO Board upon its election.
Thereafter, the ISO Board shall have the opportunity to negotiate such
changes to this Agreement, if any, as it may deem appropriate. Any
such changes as may be agreed to by the ISO and NEPOOL shall be
incorporated in the Final ISO Agreement.
1.3 Interim Activities. It is contemplated by the Parties that the
ISO shall assume responsibility for operation of the NEPOOL Control
Center and administration of the Tariff on or about July, 1997.
Promptly following the execution of this Agreement, the ISO Board shall
use its best efforts to hire a chief executive officer of the ISO (the
"ISO Chief Executive") and additional staff as contemplated by Section
5.3.
1.4 ISO Independence. In order for the ISO to achieve the requisite
independence to carry out the purposes articulated in the preamble to
this Agreement and in this Section, the Parties acknowledge that the
ISO must have authority over its budget and the authority to plan for
and operate the System in accordance with the System Rules and
Procedures promulgated pursuant to the provisions set forth in this
Agreement, with the concurrence of the FERC where applicable.
1.5 Intent of the Parties. In the event an issue arises as to the
interpretation of a provision of this Agreement which relates to the
extent to which the ISO is intended to operate independently, any
ambiguity in the provision in question shall be interpreted in
a manner that is consistent with the Parties' intent to ensure the
independence of the ISO.
2. DEFINITIONS
2.1 Affiliate: When used in reference to a person or entity, means
another person or entity which controls, is controlled by, or is under
common control with, such person or entity. As used in the preceding
sentence, "control" means the possession, directly or indirectly, of
the power to direct the management or policies of an entity. A voting
interest of ten percent (10%) or more creates a rebuttable presumption
of control.
2.2 Agreement: The agreement identified in the first paragraph of
this document, including all schedules thereto, as the same may be
amended or supplemented from time to time.
2.3 Control Area: An electric power system or combination of
electric power systems to which a common automatic generation control
scheme is applied in order to:
(i) match, at all times, the power output of the generators
within the electric power system(s) and capacity and
energy purchased from entities outside the electric
power system(s), with the load within the electric power
system(s);
(ii) maintain scheduled interchange with other Control Areas,
within the limits of Good Utility Practice;
(iii) maintain the frequency of the electric power system(s)
within reasonable limits in accordance with Good Utility
Practice and the criteria of the applicable regional
reliability council of the NERC; and
(iv) provide sufficient generating capacity to maintain
operating reserves in accordance with Good Utility
Practice.
2.4 CRS: Criteria, Rules and Standards for administration of the
NEPOOL Agreement and operation of the System, as in effect on the date
of this Agreement.
2.5 Designated Generation Facilities: All generating facilities in
the NEPOOL Control Area that are subject to central dispatch pursuant
to Section 13 of the NEPOOL Agreement.
2.6 Designated Transmission Facilities: All transmission facilities
that constitute "Pool Transmission Facilities" pursuant to Section 15
of the NEPOOL Agreement and any other transmission facilities that are
subject to central dispatch pursuant to the NEPOOL Agreement or deemed
necessary by the ISO following consultation with NEPOOL to carry out
the ISO's responsibilities under this Agreement.
2.7 Effective Date: The later of (a) _______________, 1997 and (b)
thirty (30) days after the FERC approves, without condition or
modification, the Parties' application under Section 203 of the Federal
Power Act with respect to this Agreement.
2.8 FERC: The Federal Energy Regulatory Commission.
2.9 Final ISO Agreement: The agreement to be negotiated and entered
into between NEPOOL on behalf of the NEPOOL Participants and the ISO
pursuant to Section 1.2 which will supersede this Agreement.
2.10 Force Majeure: Any act of God, labor disturbance, act of the
public enemy, war, insurrection, riot, fire, storm or flood, explosion,
breakage or accident to machinery or equipment not due to lack of
proper care or maintenance, any order, regulation or restriction
imposed by a court or governmental military or lawfully established
civilian authorities, or any other cause beyond a Party's control.
2.11 Good Utility Practice: Any practice, method, or act engaged in
or approved by a significant portion of the electric utility industry
during the relevant time period, or any practice, method, or act which,
in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to
accomplish the desired result at a reasonable cost consistent with good
business practices, reliability, safety and expedition. Good Utility
Practice is not limited to a single, optimum practice, method or act to
the exclusion of others, but rather is intended to include acceptable
practices, methods, or acts generally accepted in the region.
2.12 ISO: New England ISO Corporation and any permitted successors
and assigns.
2.13 ISO Board: The directors of the ISO who shall be selected in
accordance with the procedures described in Sections 5.1 and 5.2.
2.14 ISO Chief Executive: The chief executive officer of the ISO to
be hired by the ISO Board.
2.15 NECPUC: The New England Conference of Public Utilities
Commissioners, Inc.
2.16 NEPOOL: The New England Power Pool, the power pool created
under and governed by the NEPOOL Agreement, and the entities
collectively participating in the New England Power Pool.
2.17 NEPOOL Agreement: The Restated New England Power Pool Agreement
dated as of September 1, 1971, as amended and restated from time to
time, governing the relationship among the NEPOOL Participants,
including the Tariff.
2.18 NEPOOL Control Area: The Control Area for NEPOOL to be
administered by, or under the direction and control of, the ISO.
2.19 NEPOOL Control Center: The dispatching facilities used by NEPOOL
in carrying out its responsibilities under the NEPOOL Agreement,
consisting of certain land and a building located at One Sullivan Road,
Holyoke, Massachusetts, together with furnishings and equipment
contained therein.
2.20 NEPOOL Information Policy: The CRS No. 45 establishing
guidelines regarding the information received, created and distributed
by the NEPOOL Participants and the ISO in connection with the
settlement, operation and planning of the System, as the same may be
amended or supplemented from time to time.
2.21 NEPOOL Market: The market for electric energy, capacity and
certain ancillary services within the NEPOOL Control Area.
2.22 NEPOOL Participants: The entities (or group of entities which
have elected to be treated as a single NEPOOL Participant pursuant to
the NEPOOL Agreement) who from time to time are members of NEPOOL and
parties to the NEPOOL Agreement.
2.23 NERC: The North American Electric Reliability Council.
2.24 Non-Participant: Any entity that is not a NEPOOL Participant
that receives service under the Tariff.
2.25 NPCC: Northeast Power Coordinating Council.
2.26 NUSCO: Northeast Utilities Service Company.
2.27 OASIS: The Open Access Same-Time Information System, an
electronic bulletin board described in the Tariff.
2.28 Operating Procedures: The detailed procedures adopted by NEPOOL
for operation of the System as in effect on the date of this Agreement.
2.29 Operating Year: A calendar year. The first Operating Year
shall commence on the Effective Date and continue until the following
December 31, and the last Operating Year shall conclude on the date
that this Agreement terminates.
2.30 Party or Parties: The NEPOOL Participants, acting collectively
through NEPOOL, and the ISO as identified in the first paragraph of
this Agreement.
2.31 Satellites: Those control centers now existing or to be
established whose facilities are separate from the NEPOOL Control
Center and which perform dispatching and other functions essential to
the reliable operation of the System. Satellite responsibilities
include, but are not limited to, regional transmission security
analysis, switching and tagging, and implementation of applicable
System Rules and Procedures. The locations of the Satellites as of the
date of this Agreement are set forth on Schedule A attached hereto.
2.32 System: Designated Generation Facilities and Designated
Transmission Facilities.
2.33 System Rules and Procedures: The criteria, rules, standards and
procedures to be developed pursuant to this Agreement for operation of
the System and administration of the transmission and market
arrangements under the Tariff and the NEPOOL Agreement. Upon the
Effective Date of this Agreement, the CRS and Operating Procedures then
in effect shall constitute the System Rules and Procedures until
modified, replaced or supplemented pursuant to the procedures set forth
in Section 6.17.
2.34 Tariff: The NEPOOL Open Access Transmission Tariff set out in
Attachment B to the NEPOOL Agreement, as modified and amended from time
to time, which designates the terms and conditions of non-
discriminatory regional transmission service provided by the NEPOOL
Participants.
3. TERM
The term of this Agreement shall begin on the Effective Date and
continue until the fifth anniversary of the Effective Date, unless
earlier superseded by the Final ISO Agreement or otherwise terminated
in accordance with the provisions of Section 13.
4. AGREEMENT ADMINISTRATION
4.1 Equipment, Facilities and Personnel. The ISO and each of the
NEPOOL Participants, either directly or through the Satellites, shall
maintain the necessary equipment, facilities and personnel sufficient
for the ISO to operate the NEPOOL Control Area in accordance with
Section 6.1, and the NEPOOL Participants to operate their Designated
Generation and Designated Transmission Facilities in accordance with
Section 7.1.
4.2 Representative of the ISO. The ISO Board shall designate a
representative (the "ISO Representative") with authority to act for the
ISO in connection with the administration of this Agreement.
4.3 Representatives of NEPOOL. The NEPOOL Management Committee or
the NEPOOL Executive Committee acting on its behalf or its designee(s)
shall have authority to act for NEPOOL in connection with the
administration of this Agreement.
4.4 Consultation. The ISO shall consult as necessary with the
NEPOOL Executive Committee or its designee(s) in order to resolve any
matters which may arise in connection with the services of the ISO
under this Agreement. Any matter which remains in dispute shall be
resolved in accordance with the dispute resolution provisions
referred to in Section 12.
4.5 Joint Committees. The NEPOOL Executive Committee and the ISO
may from time to time form such committees as they may deem necessary
to assist them in carrying out activities appropriate to the
administration of this Agreement.
5. QUALIFICATIONS OF THE ISO
5.1 ISO Board: (a) Except for the ISO Chief Executive who shall
serve as a member of the ISO Board as provided in Section 5.2, the
initial members of the ISO Board shall be nominated by a Nominating
Committee to be established by the NEPOOL Executive Committee
reflecting the diversity of the NEPOOL Participants. The Nominating
Committee shall be composed of ten members, with two members to be
drawn from each of the following groups of NEPOOL Participants:
(i) investor-owned utilities whose voting shares under the
NEPOOL Agreement equals or exceeds 3% of the aggregate
voting shares of all NEPOOL Participants under the
NEPOOL Agreement;
(ii) investor-owned utilities whose voting shares under the
NEPOOL Agreement constitute less than 3% of the
aggregate voting shares of all NEPOOL Participants under
the NEPOOL Agreement;
(iii) municipally-owned and cooperatively-owned utilities;
(iv) non-utility generators;
(v) power marketers, brokers and load aggregators.
The Nominating Committee shall give notice to and invite the
participation of a representative or representatives of NECPUC as a
non-voting member at all meetings of Nominating Committee.
(b) The Nominating Committee shall appoint a sub-committee from
among its members (the "Steering Committee") to work with an executive
search firm to review the qualifications of and pre-screen potential
candidates for the ISO Board. The candidates shall be identified by
the executive search firm or otherwise brought to the attention of
the Steering Committee. The Steering Committee shall recommend to the
Nominating Committee a pool of qualified candidates so pre-screened by
the Steering Committee. The Steering Committee shall give notice to
and invite the participation of a representative or representatives of
NECPUC as a non-voting member at all meetings of the Steering
Committee.
(c) The nine members of the ISO Board other than the ISO Chief
Executive shall be elected by the NEPOOL Executive Committee from and
out of a slate of no fewer than 15 candidates nominated by the
Nominating Committee. The NEPOOL Executive Committee shall give notice
to and invite the participation of a representative or representatives
of NECPUC as a non-voting member at the meeting held to elect the
independent directors.
(d) Subsequent directors shall be elected by a majority of the
directors then in office, in accordance with procedures set forth in
the Certificate of Incorporation of the ISO.
(e) The ISO Board shall elect from among its members a Chair of the
ISO Board; provided, however, that the ISO Chief Executive shall not be
eligible for election as the Chair. The Chair shall serve in
accordance with the By-laws of the ISO and shall preside at all
meetings of the ISO Board.
5.2 Composition. The ISO Board shall be composed of ten members,
and no director shall be affiliated with any NEPOOL Participant or
other market participant in the NEPOOL Control Area. The ISO Chief
Executive shall, by virtue of his office, serve as a member of the ISO
Board with full voting rights as a director. The remaining nine
members shall possess a cross-section of skills and experience (such
as, for purposes of illustration but not by way of mandate or
limitation, experience in FERC electric regulatory affairs, electric
utility management, corporate finance, bulk power systems, human
resource administration, power pool operations, public policy, consumer
advocacy, environmental affairs, business management and information
systems), to ensure that the ISO has sufficient knowledge and expertise
to perform its obligations under this Agreement. At least three of the
directors shall have prior relevant experience
in the electric industry. In addition, to ensure sensitivity to
regional concerns, strong preference shall be given to electing members
from New England to the extent qualified candidates are available and
such representation can be accomplished consistent with the ISO's
conflict of interest policy.
5.3 ISO Staff. The ISO shall maintain a staff of employees
sufficient in number, skill, training and knowledge to satisfy its
obligations under this Agreement. In addition to such additional staff
as the ISO may deem reasonably necessary to perform its obligations
under this Agreement, it is contemplated by the Parties that the
existing NEPOOL staff, who are currently employed by NUSCO and provide
services to NEPOOL pursuant to a service agreement with NEPOOL, will be
offered employment by the ISO. Until such employment by the ISO, the
NEPOOL staff will continue to operate the NEPOOL Control Center and
administer the Tariff pursuant to a service agreement to be entered
into between the ISO and NUSCO.
5.4 Conflict of Interest Policy. (a) The ISO shall adopt and
enforce a conflict of interest policy which shall comply with the
requirements of FERC Order 888.
(b) The ISO as a corporate entity shall not have any financial
interest in the economic performance of any NEPOOL Participant or any
other market participant in the NEPOOL Control Area or any Affiliate of
either, nor shall it engage in any transactions, directly or
indirectly, for its own account in the NEPOOL Market.
5.5 Non-Profit Entity. (a) The ISO shall exist as a non-profit
corporation and shall not perform any services other than the services
contemplated by this Agreement and related activities without the prior
written consent of NEPOOL, which consent shall not be unreasonably
withheld. It is understood and agreed that the provisions of this
Section 5.5 are not intended to preclude or limit the ability of the
ISO to deal with Non-Participants in performing its duties under this
Agreement and the Tariff.
(b) If the ISO desires to engage in any activity which in its
reasonable judgment is a significant related activity not contemplated
by this Agreement, the ISO shall give written notice of its intention
to engage in such related activity to the NEPOOL Executive Committee.
The NEPOOL Executive Committee shall have thirty (30) days to
determine whether it concurs in the judgment of the ISO that the
proposed activity is a "related activity" as contemplated in
subparagraph (a) above. If the NEPOOL Executive Committee disagrees
with the determination of the ISO, it shall give written notice of its
disagreement to the ISO within such thirty (30) day period, and the ISO
shall refrain from engaging in such activity pending resolution of the
dispute in accordance with the dispute resolution procedures described
in Section 12.1.
- 12 - (Revised)
5.6 Advisory Committee. (a) The ISO Board shall establish and
appoint the members of an Advisory Committee. The purpose of the
Advisory Committee shall be to provide information, feedback and
assistance to the ISO Board on matters relating to the operation of
this Agreement and the NEPOOL Market. The Advisory Committee
shall not have oversight responsibilities with respect to decisions of
the ISO Board but rather shall serve as an information resource to the
Board and a vehicle to provide the viewpoints of a broad spectrum of
parties with an interest in the NEPOOL Market. The Advisory Committee
shall be composed of approximately 20 members representing a
broad spectrum of interests, including for purposes of illustration but
not by way of mandate or limitation individuals representing the
following viewpoints:
(i) New England state regulatory;
(ii) New England residential consumer;
(iii) New England commercial or industrial consumer;
(iv) environmental;
(v) public interest;
(vi) municipal government;
(vii) NEPOOL Market participants;
(viii) economic;
(ix) engineering;
(x) academia.
(b) The ISO Board shall establish Bylaws for the Advisory Committee
providing for, among other things, the appointment of a Chair and
requiring not less than one meeting a year between the ISO Board and
the Advisory Committee. The ISO shall provide the Advisory Committee
with such administrative support as may be necessary for the
committee to perform its functions as delineated by the ISO Board. The
Advisory Committee shall have no staff or budget and the members shall
serve without pay, provided, however, that the ISO shall reimburse
Advisory Committee members for reasonable out-of-pocket expenses
incurred in attending committee meetings.
6. RIGHTS AND OBLIGATIONS OF THE ISO
6.1 Operation of the System. The ISO shall serve as the operator of
the NEPOOL Control Area and assume responsibility for the continued
operation of the NEPOOL Control Center, consistent with the terms of
this Agreement, the NEPOOL Agreement and the Tariff, the System Rules
and Procedures, Good Utility Practice and applicable laws and
regulations.
6.2 Administration of Transmission and Market Arrangements. The ISO
shall administer the transmission and market arrangements in accordance
with the Tariff, the NEPOOL Agreement and the System Rules and
Procedures.
6.3 System Planning. The ISO shall have the authority to
independently conduct System assessment and planning as it may deem
necessary, and shall convey its findings and recommendations to NEPOOL.
The ISO may propose or adopt such new System Rules or Procedures as it
may deem necessary or desirable to implement any such recommendations,
subject to and in accordance with the procedures set forth in Section
6.17. The ISO shall also conduct such System assessment and planning
as may be requested by NEPOOL.
6.4 Market Assessment. The ISO shall have the authority to
independently assess the competitiveness and efficiency of the NEPOOL
Market and shall convey its findings
and recommendations to NEPOOL. The ISO may propose or adopt such new
System Rules or Procedures as it may deem necessary or desirable to
implement any such recommendations, subject to and in accordance with
the procedures set forth in Section 6.17
6.5 Facilities and Equipment. (a) The ISO shall have the right to
use such facilities, equipment and software as are currently used by
NEPOOL in directing the operation of the System, including without
limitation the NEPOOL Control Center, to enable the ISO to perform its
obligations under this Agreement. The ISO shall maintain and care for,
insure as appropriate, and pay any property taxes relating to the
assets made available for its use. If the ISO determines a need for
additional facilities or equipment to carry out its responsibilities
under this Agreement (such as, for purposes of illustration, computer
equipment, but not including transmission facilities or generating
units), the ISO shall request funding for such equipment or facilities
in its budget as provided in Sections 8.2 and 8.5.
(b) All land, structures, fixtures, equipment and facilities, and
other capital assets, and all software and other intellectual property
or rights to intellectual property or other assets, acquired or
developed by the ISO in order to carry out its responsibilities under
this Agreement shall be the property of the NEPOOL Participants or
shall be acquired by the NEPOOL Participants under lease in accordance
with arrangements approved by the NEPOOL Management Committee. The ISO
shall refrain from any action that would create any lien, security
interest or encumbrance of any kind upon the facilities, equipment or
other assets of any NEPOOL Participant, or upon anything that becomes
affixed to such facilities, equipment or other assets. Upon the
request of any NEPOOL Participant, the ISO (i) shall provide a written
statement that it has taken no action that would create any such lien,
security interest or encumbrance, and (ii) shall take all actions
within the control of the ISO, at the direction and expense of the
requesting NEPOOL Participant, required for compliance by such NEPOOL
Participant with the provisions of its mortgage relating to such
facilities, equipment or other assets.
6.6 System Reliability. The ISO shall have primary responsibility
for ensuring short-term reliability of the System consistent with the
applicable standards set by NERC and the NPCC. The ISO may direct any
NEPOOL Participant to take any action necessary to preserve the
reliable operation of the NEPOOL Control Area under the circumstances
and in the manner set forth in the Tariff and the System Rules and
Procedures.
6.7 Emergency Power. The ISO shall have authority for and on behalf
of NEPOOL to enter into arrangements to procure emergency power under
the conditions set forth in
the NEPOOL Agreement and the System Rules and Procedures and in
applicable interconnection agreements.
6.8 Maintenance Scheduling. The ISO shall be responsible for
overseeing the scheduling of maintenance of the Designated Transmission
Facilities and the Designated Generation Facilities in conformance with
the System Rules and Procedures.
6.9 System Restoration. In the event that a System shutdown occurs
affecting all or part of the NEPOOL Control Area, the ISO shall, in
accordance with the System Rules and Procedures, coordinate the
restoration of service in conjunction with the Satellites and other
NEPOOL Participant control centers.
6.10 Interconnection Contracts. The ISO shall administer the
interconnection contracts with utilities and other entities outside of
the NEPOOL Control Area.
6.11 Satellites. The Parties contemplate that eventually many, if
not all, of the operational and competitive functions performed by the
Satellites will be transferred to the ISO. However, because of the
significant complexity, reliability implications and cost involved in
making this transfer, the Satellites will remain in existence for at
least the next few years with the transfer date to be determined by the
ISO. In performing its obligations hereunder, the ISO shall have the
authority to direct and oversee the operation of the Satellites. The
Satellites and the personnel who operate the Satellites shall be
subject to appropriate standards of conduct complying with FERC Order
889, and the ISO shall have the authority and responsibility for
monitoring compliance by the Satellites with such standards of conduct
while competitive functions exist at the Satellites.
6.12 Dissemination of Information. The ISO shall disseminate
information furnished to it by NEPOOL Participants consistent with the
NEPOOL Information Policy and the employee code of conduct referred to
in Section 6.14, and shall maintain the confidentiality of such
information in accordance with the provisions of such policy.
6.13 OASIS. The ISO shall continue to develop, maintain and operate
an OASIS consistent with the requirements of applicable laws and
regulations.
6.14 Code of Conduct. The ISO shall develop and implement an
employee code of conduct that at a minimum complies with the
requirements of FERC Order 889.
6.15 Annual Report and Performance Audit. The ISO shall prepare and
submit to NEPOOL an annual report on its performance under this
Agreement and cooperate in the
conduct of a periodic audit of its performance. The audit shall be
conducted by an independent third party to be chosen by mutual
agreement of the Parties, and shall be conducted at such intervals as
shall be determined by the NEPOOL Executive Committee, but no more
frequently than every three years unless a specified issue has
been identified for audit by the NEPOOL Executive Committee.
6.16 Financial Statements. The ISO shall deliver to NEPOOL as soon
as available but in any event within ninety (90) days after the end of
each calendar year audited financial statements for such year for the
ISO, duly certified by independent public accountants of national
recognized standing.
6.17 System Rules and Procedures. (a) The ISO shall initially
operate the NEPOOL Control Center in accordance with the CRS and
Operating Procedures as currently in effect. The ISO may propose or
implement such changes to the CRS and Operating Procedures as it may
deem necessary or advisable in connection with the performance of its
obligations under this Agreement in accordance with the procedures
set forth in this Section 6.17.
(b) NEPOOL and the ISO shall have joint responsibility to develop
such new System Rules and Procedures as may be necessary to allow the
ISO to carry out its obligations under this Agreement. The System
Rules and Procedures will in the ordinary course be developed through
the appropriate NEPOOL Committees, and the ISO will participate in
the development of these System Rules and Procedures or changes thereto
through representation on the NEPOOL Executive Committee and each of
NEPOOL's Market Reliability Planning, Regional Transmission Planning,
Regional Market Operations and Regional Transmission Operations
Committees, respectively, as provided in the NEPOOL Agreement. The ISO
shall have the right to initiate rulemaking at any time on any matter
through its representatives on the NEPOOL Committees.
(c) If the applicable NEPOOL Committee fails to adopt a System Rule
or Procedure or change thereto proposed by the ISO, the ISO shall have
the right to appeal the action of such NEPOOL Committee to the NEPOOL
Management Committee. Such appeal shall be taken prior to the end of
the tenth business day following the meeting of the NEPOOL Committee to
which the appeal relates by giving to the Secretary of the NEPOOL
Management Committee a signed and written notice of appeal and by
mailing a copy of the notice to each member of the Management
Committee. Unless the NEPOOL Management Committee otherwise acts
within sixty (60) days of such notice, the System Rule or Procedure or
change thereto proposed by the ISO will be deemed approved by the
NEPOOL Management Committee. If the NEPOOL Management Committee denies
the appeal of the ISO, the ISO may next submit the matter to the ISO
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Board for determination. The ISO shall give notice of any such submission to
the Secretary of the NEPOOL Management Committee within ten days of the action
of the NEPOOL Management Committee and shall mail a copy of such notice to each
member of the NEPOOL Management Committee. Unless the ISO Board acts within
sixty (60) days of such notice, the NEPOOL Management Committee action will be
deemed approved. If the ISO Board determines within such period that the
System Rule or Procedure or change should be adopted, then the System Rule or
Procedure or
change, as applicable, proposed by the ISO may be implemented by the
ISO sixty (60) days following delivery to the NEPOOL Management
Committee of notice of the ISO Board determination, subject to approval
by the FERC if required by applicable law or regulation. If the ISO so
implements such new System Rule or Procedure or change, then the NEPOOL
Management Committee may (i) request that the matter be submitted
to the dispute resolution process contained in Section 21.1 of the
NEPOOL Agreement or (ii) submit the decision of the ISO Board directly
to the FERC. The new System Rule or Procedure or change shall continue
in effect during the foregoing process. If NEPOOL and the ISO agree to
invoke the dispute resolution procedures and the ISO is not satisfied
with the result following that process, then notwithstanding anything
to the contrary set forth in Section 21.1 of the NEPOOL Agreement, the
ISO may promptly notify NEPOOL of its disagreement and in such event
the new System Rule or Procedure or change shall continue to remain in
effect. Upon receipt of any such notice from the ISO, NEPOOL may then
submit the matter to the FERC for final resolution.
(d) In addition to the rights of the ISO described in subparagraph
(c), the ISO shall have the right to appeal any other actions of any
NEPOOL Committee in the rulemaking process to the NEPOOL Management
Committee. Such appeal shall be taken prior to the end of the tenth
business day following the meeting of the NEPOOL Committee to
which the appeal relates by giving to the Secretary of the NEPOOL
Management Committee a signed and written notice of appeal and by
mailing a copy of the notice to each member of the Management
Committee. In the event the dispute resolution procedures described in
this subparagraph (d) have been invoked, the action of the NEPOOL
Committee subject to the dispute shall be suspended indefinitely
pending resolution of the dispute. If the NEPOOL Management Committee
denies the appeal of the ISO or takes action on any rulemaking issue
either sua sponte or on appeal from any other NEPOOL Participant and
the ISO is not in agreement with such action, the ISO may next submit
the matter to the ISO Board for determination. The ISO shall give
notice of any such submission to the Secretary of the NEPOOL Management
Committee within ten days of the action of the NEPOOL Management
Committee and shall mail a copy of such notice to each member of the
NEPOOL Management Committee. Unless the ISO Board acts within sixty
(60) days of such notice, the NEPOOL Management Committee action will
be deemed approved. If the ISO Board decides within such period
against NEPOOL, then the NEPOOL Management Committee may (i)request
that the matter be submitted to the dispute resolution process
contained in Section 21.1 of the NEPOOL Agreement or (ii)submit the
decision of the ISO Board directly to the FERC. If NEPOOL and the ISO
agree to invoke the dispute resolution procedures and the ISO is
not satisfied with the result following that process, then
notwithstanding anything to the contrary set forth in Section 21.1 of
the NEPOOL Agreement, the ISO may promptly notify NEPOOL of its
disagreement, and in such event the action of the NEPOOL Committee in
question shall continue to be suspended. Upon receipt of any such
notice from the ISO, NEPOOL may then submit the matter to the FERC for
final resolution.
(e) If the ISO determines in good faith that (i) the failure to
immediately implement a new System Rule or Procedure or a modification
to the existing System Rules or Procedures would substantially and
adversely affect (A) System reliability or security, or (B) the
competitiveness or efficiency of the NEPOOL Market, and (ii) invoking
the rulemaking procedures of the relevant NEPOOL Committee would not
allow for timely redress of the ISO's concerns, the ISO may promulgate
and implement such new or modified System Rule or Procedure
unilaterally upon written notice to the NEPOOL Executive Committee,
subject to approval by the FERC, if required.
(f) In the event the ISO promulgates a new or modified System Rule
or Procedure under the circumstances set forth in subparagraph (e)
above and the NEPOOL Executive Committee does not object to such System
Rule or Procedure or change within sixty (60) days of receipt of
notification from the ISO, the System Rule or Procedure or change, as
applicable, will be deemed accepted by NEPOOL.
(g) If the NEPOOL Executive Committee does not agree to the new
System Rule and Procedure or the modification promulgated by the ISO
pursuant to subparagraph (e), the NEPOOL Executive Committee and the
ISO shall attempt in good faith to reach agreement on the issue in
dispute as soon as practicable. The NEPOOL Executive Committee may (i)
request that the matter be submitted to the dispute resolution process
contained in Section 21.1 of the NEPOOL Agreement at any time during
this process, or (ii)submit the actions of the ISO directly to the
FERC. If NEPOOL and the ISO agree to invoke the dispute resolution
procedures and the ISO is not satisfied with the result following that
process, then notwithstanding anything to the contrary set forth in
Section 21.1 of the NEPOOL Agreement, the ISO may promptly notify
NEPOOL of its disagreement, and in such event the new System Rule or
Procedure or change shall continue to remain in effect. Upon receipt
of any such notice from the ISO, NEPOOL may then submit the matter to
the FERC for final resolution. Any System Rule and Procedure or change
implemented by the ISO shall remain in effect pending resolution of
the dispute.
(h) The Parties understand and agree that the System Rules and
Procedures adopted pursuant to this Agreement shall be consistent with
the standards adopted by the NERC and the NPCC or any successor to
either.
(i) The ISO shall have sole authority to interpret and implement the
System Rules and Procedures developed pursuant to this Section 6.17 as
it performs its operating responsibilities under this Agreement.
6.18 Subcontractors and Consultants. The ISO may engage
subcontractors and consultants in the performance of its obligations
under this Agreement when it determines that the use of such
subcontractors or consultants is appropriate; provided, however, that
the ISO shall not subcontract the whole or a substantial portion of its
obligations under this Agreement and any subcontract entered into by
the ISO shall not release the ISO from its obligations under this
Agreement. Except as provided in Section 5.3, the ISO shall not
subcontract with or procure any goods or services from any NEPOOL
Participant or any Affiliate of the ISO or any NEPOOL Participant
unless it has solicited bids for such subcontract or goods for services
through an open and competitive process. All procurement procedures
and protocols developed by the ISO shall be made publicly available.
7. RIGHTS AND OBLIGATIONS OF NEPOOL AND THE NEPOOL PARTICIPANTS
7.1 Operation of Facilities. The NEPOOL Participants shall operate
their Designated Generation Facilities, Designated Transmission
Facilities and Satellites in accordance with the NEPOOL Agreement and
the Tariff, the System Rules and Procedures, Good Utility Practice and
applicable laws and regulations, including the ISO's directions
pursuant to this Agreement.
7.2 Provision of Information. The NEPOOL Participants shall provide
the ISO with any and all information within their custody or control
that the ISO deems necessary to perform its obligations under this
Agreement, subject to applicable confidentiality limitations contained
in the NEPOOL Information Policy.
7.3 Development of System Rules and Procedures. The NEPOOL
Participants shall participate in developing the System Rules and
Procedures necessary to allow the ISO to carry out its obligations
under this Agreement in the manner described in Section 6.17.
7.4 Payment for Services. The NEPOOL Participants shall pay the ISO
for services provided pursuant to the terms of this Agreement.
7.5 Payment for Audits. NEPOOL shall bear all costs of the audits
of the ISO and its financial statements pursuant to Sections 6.15 and
6.16 of this Agreement.
7.6 Emergency Actions. The NEPOOL Participants shall follow the
directions of the ISO to take actions necessary to preserve the
reliable operation of the NEPOOL
Control Area under the emergency and other conditions set forth in the
Tariff and the System Rules and Procedures.
7.7 Response to ISO Assessment. NEPOOL shall respond in writing to
any findings and recommendations conveyed by the ISO to the NEPOOL
which result from any assessment of the System or the functioning of
the NEPOOL Market undertaken by the ISO pursuant to Sections 6.3 and
6.4 within sixty (60) days of receipt by NEPOOL of such findings.
8. ISO BUDGET
8.1 First Operating Year. The budget for the first Operating Year
shall be as set forth in Schedule B.
8.2 Preparation of Annual Budget. Seventy-five (75) days before the
start of each Operating Year after 1997, the ISO shall prepare and
submit to the NEPOOL Executive Committee a budget approved by the ISO
Board for the upcoming Operating Year. The budget shall contain
separate sections for the ISO's (i) operating expenses, (ii) proposed
capital expenses, if any, and (iii) other extraordinary nonrecurring
expenses, if any. To the extent that any proposed capital or other
extraordinary expenses involve commitments which extend beyond the next
Operating Year, the budget shall contain the projected expenses
including carrying charges for the length of the project.
8.3 Review of Budget. The NEPOOL Executive Committee shall review
and comment on the proposed budget no later than forty-five (45)days
before the start of the Operating Year. The NEPOOL Executive Committee
shall afford the ISO representative on such committee the opportunity
to fully present the ISO's budget recommendations to the NEPOOL
Executive Committee and shall give due consideration to such
recommendations. Subject to the provisions of Sections 8.4, 8.5 and
8.6, the final budget shall be as agreed to by the NEPOOL Executive
Committee, with the approval of the NEPOOL Management Committee, and
the ISO.
8.4 Budget Disputes. If NEPOOL and the ISO cannot reach agreement
by the first day of December in the then current Operating Year as to
the budget, the final operating budget for the then current Operating
Year shall remain in effect, as adjusted by multiplying the current
budget by a reference index, and any previously approved capital
expenditures and appropriate carrying charges shall continue to be
authorized and funded; provided, however, that there shall be excluded
from the roll-over budget any capital expenses, carrying charges or
other extraordinary or nonrecurring expenses incurred by the ISO during
the current Operating Year but not previously approved for
the next Operating Year. Such reference index shall be the average
quarterly escalation rate over the four previous calendar quarters
determined based on the Employment Cost Index - Compensation of Private
Industry Workers, White Collar Occupations as published by the Bureau
of Labor Statistics, U.S. Department of Labor, in "U.S. Department of
Labor News", Table3 (ECI - WCO). In the event the Employment Cost
Index - Compensation of Private Industry Workers, White Collar
Occupations is no longer published, a mutually agreed upon index shall
be adopted.
8.5 Changes to the Budget. The ISO shall use all reasonable efforts
to anticipate its funding needs for each Operating Year in connection
with the preparation and submission of its proposed budget as provided
in Section 8.2 above. Notwithstanding the foregoing, the ISO may, at
any time, request an adjustment to its then current budget to
address unanticipated events, including, but not limited to, events of
Force Majeure. If the ISO in its reasonable judgment determines that
the unanticipated event constitutes an urgent matter which requires
prompt redress, NEPOOL shall fund the budget request subject to the
right of NEPOOL to subsequently submit any item in dispute to the
dispute resolution procedures described in Section 12.1.
8.6 Dispute Resolution. In the event the NEPOOL Executive Committee
and the ISO are unable to reach agreement on the proposed budget for
the next operating year or any change in the budget for the current
year or the NEPOOL Management Committee fails to approve the budget or
change in accordance with Section 8.3, then in addition to following
the procedures set forth in Sections 8.4 and 8.5, the dispute shall be
resolved in accordance with the dispute resolution procedures described
in Section 12.1.
8.7 New Initiatives: The Parties contemplate that the Final ISO
Agreement will contain additional provisions to be negotiated by the
ISO Board and NEPOOL to address the manner in which new initiatives by
the ISO requiring the expenditure of funds not previously agreed to by
the ISO and NEPOOL will be authorized and approved. Under this
Agreement, except as otherwise provided in this Section 8, any new
spending initiatives proposed by the ISO are subject to the approval of
NEPOOL, and disagreements between the ISO and NEPOOL with respect to
such initiatives must be resolved in accordance with the dispute
resolution procedures described in Section 12.1. Prior to the entering
into of the Final ISO Agreement, NEPOOL will seek guidance from
the FERC as to the appropriateness of continuing NEPOOL's approval
right as to this type of expenditure and possible alternative
mechanisms, including without limitation the possible role of the FERC
as the avenue of first resort by the ISO for authorization of
new spending initiatives.
8.8 Obligation to Pay. NEPOOL shall pay the ISO for its expenses as
set forth in the then current budget. The ISO shall bill NEPOOL for
such expenses monthly in advance. The ISO's expenses shall be
allocated among the NEPOOL Participants in accordance with the
provisions of the NEPOOL Agreement, and the ISO shall prepare
and send to each NEPOOL Participant an individual statement covering
its allocable share of the ISO's expenses in accordance with the
billing procedures set forth in Section 9.2. The ISO shall reconcile
its actual expenses against budgeted expenses no less frequently than
quarterly, and may make such adjustments to its billing cycle as may be
reasonably necessary to ensure that the ISO has sufficient working
capital to carry on its operations under this Agreement.
8.9 Fees for Scheduling, System Control and Dispatch Service.
Schedule 1 to the Tariff requires transmission customers to purchase
scheduling, system control and dispatch services from the ISO in
connection with the purchase of transmission service under the Tariff.
Charges for scheduling, system control and dispatch service are to be
based on the rate set forth on Schedule 1 to the Tariff. The ISO shall
apply the amounts received by it for such ancillary services which are
attributable to the ISO's expenses toward such expenses, and shall
reduce the amounts to be billed to NEPOOL for its expenses under
Section 8.8 by the amounts so received. Direct payment to the ISO of
such charges shall be limited to Through or Out Service, as defined in
the Tariff, for an initial period not exceeding six months.
Thereafter, Regional Network Service, as defined in the Tariff, shall
also pay such charges directly to the ISO.
8.10 Additional ISO Surcharges. The budgeting process in this
Agreement contemplates that the ISO will be compensated by NEPOOL for
the costs incurred or to be incurred by the ISO in performing its
obligations hereunder, and that subject to the offset described in
Section 8.9, such costs will be allocated to the NEPOOL Participants
in accordance with the provisions of the NEPOOL Agreement. The Parties
intend to develop a plan for funding the maximum practicable level of
costs of the ISO through the imposition of additional fees on the
services provided by the ISO. The Parties shall conclude their plan
for such transaction based fees on or before the first anniversary of
the Effective Date, and take all necessary steps to seek authorization
from the FERC to implement such fees.
9. BILLING SERVICES
9.1 Billing Agent. NEPOOL hereby appoints the ISO and the ISO
agrees to act as billing agent for NEPOOL in respect of amounts to be
collected from or disbursed to NEPOOL Participants and Non-Participants
under the NEPOOL Agreement and the Tariff.
9.2 Monthly Billing. The ISO shall prepare an itemized statement no
less frequently than once a month for each NEPOOL Participant, setting
forth the amounts owed to the ISO pursuant to Section 8.8 and the other
amounts, if any, to be collected from or disbursed to such NEPOOL
Participant by the ISO as billing agent under this Agreement.
Billings to Non-Participants for services received under the Tariff
shall be made in accordance with the billing procedures established
under the Tariff.
9.3 Payment Disputes. If a NEPOOL Participant disagrees with any
amount set forth in a statement from the ISO, that NEPOOL Participant
shall promptly notify the ISO and the ISO shall attempt to resolve such
disagreement with that NEPOOL Participant. If the disagreement cannot
be resolved by the NEPOOL Participant and the ISO, the ISO shall refer
the matter to the NEPOOL Executive Committee for resolution.
If the ISO disagrees with the resolution by the NEPOOL Executive
Committee, it may submit the dispute to resolution under Section 12.1
of this Agreement. If the NEPOOL Participant disagrees with the
resolution by the NEPOOL Executive Committee, it may submit the dispute
to resolution under the dispute resolution procedures of the NEPOOL
Agreement. Notwithstanding a NEPOOL Participant's disagreement with
any amount set forth in a statement from the ISO, that NEPOOL
Participant shall (i) pay when due all amounts not in dispute and (ii)
pay into an independent escrow account the portion of the invoice in
dispute, pending resolution of the dispute, in accordance with the
procedures established pursuant to Section 21.2 of the NEPOOL
Agreement.
9.4 Failure to Pay. If a NEPOOL Participant fails to pay the ISO any
amount set forth on the monthly statement prepared by the ISO when due,
the ISO shall provide notice to such NEPOOL Participant of the non-
payment, with a copy to the NEPOOL Executive Committee or its designee.
The NEPOOL Executive Committee may take such measures as may be
permitted under the NEPOOL Agreement to collect such overdue payment
from the defaulting NEPOOL Participant. If the non-payment relates to
an amount payable under Section 8.8, the ISO may make such pro rata
adjustments to the statements of the other NEPOOL Participants as may
be required to hold the ISO harmless from the effects of such non-
payment.
10. LIABILITY, INDEMNIFICATION AND INSURANCE
10.1 Liability of ISO. The ISO shall not be liable to the NEPOOL
Participants for actions or omissions by the ISO in performing its
obligations under this Agreement, provided it has not willfully
breached this Agreement or engaged in willful misconduct.
10.2 Liability of NEPOOL Participants. The NEPOOL Participants shall
not be liable to the ISO for a failure to perform under the terms of
this Agreement, unless that failure to perform was a willful breach of
this Agreement.
10.3 Limitation of Liability. In no event shall either Party to this
Agreement be liable to the other Party for any incidental,
consequential, multiple or punitive damages, loss of revenues or
profits, attorneys fees or costs arising out of, or connected in any
way with the performance or non-performance of this Agreement.
10.4 Indemnification. NEPOOL shall indemnify, defend and save
harmless the ISO and its directors, officers, members, employees and
agents from any and all damages, losses, claims and liabilities by or
to third parties arising out of or resulting from the performance by
the ISO under this Agreement or the actions or omissions of the
NEPOOL Participants in connection with this Agreement, except in cases
of gross negligence or willful misconduct by the ISO or its directors,
officers, members, employees or agents.
10.5 Insurance. The ISO shall procure or cause to be procured and
shall maintain in full force and effect at all times during the term of
this Agreement, all insurance required by applicable laws or
regulations and customary in the electric utility industry through
insurance policies with responsible insurance companies authorized to
do business in the United States in such amounts and for such coverages
and upon such terms as agreed to through the process of approving the
ISO's budget.
11. FORCE MAJEURE
11.1 Obligations Excused. A Party's obligations under this Agreement
shall be excused (except for its payment obligations) to the extent and
for the period that the Party's inability to perform is caused by an
event of Force Majeure affecting the Party, and only to the extent of
the duration of the same, provided that the Party claiming Force
Majeure shall make all reasonable efforts to cure, mitigate or remedy
the effects of the Force Majeure event. Nothing herein shall be
construed to require either Party to settle a labor dispute.
11.2 Notice of Event. The Party claiming a Force Majeure event shall
give prompt notice in writing to the other Party of the commencement of
the Force Majeure event.
12. DISPUTE RESOLUTION
12.1 Mediation and Arbitration. Any dispute between the Parties to
this Agreement arising out of or related to this Agreement shall be
referred (i) by the ISO, to a representative or representatives
designated by the Board of Directors of the ISO, and (ii) by NEPOOL, to
a representative or representatives designated by the NEPOOL
Executive Committee, for informal resolution as soon as is practicable.
If the designated representatives are unable to informally resolve the
dispute within thirty days of having it referred to them, either Party
to the dispute may elect to submit the dispute to mediation,
and/or arbitration to be resolved in accordance with the dispute
resolution procedures set forth in Section 21.1 of the NEPOOL
Agreement. The provisions of such Section 21.1 are hereby incorporated
by reference herein, provided that the term "Participant" as used
therein shall be deemed for purposes of the dispute resolution
procedures to include the ISO. It is understood and agreed that the
dispute resolution procedures set forth in Section 21.1 of the NEPOOL
Agreement may be invoked by either Party to resolve a dispute under
this Agreement whether or not the matter subject to the dispute is
specified in Section 21.1A of the NEPOOL Agreement.
12.2 FERC Jurisdiction. Nothing in this Agreement shall restrict the
rights of the Parties to file a complaint with or submit any action to
the FERC under relevant provisions of the Federal Power Act, nor shall
anything in this section or elsewhere in the Agreement affect the
jurisdiction of the FERC over matters arising under this Agreement.
13. ISO TERMINATION OR RESIGNATION
13.1 ISO Default. In the event that the NEPOOL Executive Committee
determines that the ISO has failed, for any reason other than Force
Majeure or the non-performance by NEPOOL Participants of their duties
and obligations under this Agreement, to perform under this Agreement
in a satisfactory fashion, the NEPOOL Executive Committee shall attempt
to resolve the performance problem informally with the ISO Chief
Executive. In the event that such informal efforts to resolve such
performance problem are unsuccessful, the Chair of the NEPOOL Executive
Committee shall put the NEPOOL Executive Committee's concerns in
writing and shall submit a written request to the ISO Board asking that
the ISO Board take appropriate action to resolve the performance
problem. The ISO Board shall have 60 days to resolve the performance
problem to the satisfaction of the NEPOOL Executive Committee or to
submit the problem for resolution in accordance with the dispute
resolution procedures set forth in Section 12.1.
13.2 Removal Vote. (a) In the event the ISO Board fails to satisfy
the concerns submitted to it pursuant to Section 13.1 to the
satisfaction of the NEPOOL Executive Committee within 60 days of the
submittal, or if the ISO Board sought resolution of the concerns in
accordance with the dispute resolution procedures set forth in Section
12.1 within such 60 day period and the concerns have not been resolved
through such procedures, the NEPOOL Executive Committee shall have the
right to submit the performance problem to the NEPOOL Management
Committee for a vote as to whether the ISO should be removed and
replaced.
(b) If the NEPOOL Management Committee votes to remove the ISO,
NEPOOL may petition the FERC for approval to terminate the services of
the ISO under this Agreement, but such termination by NEPOOL shall not
be effective without the approval of the FERC.
(c) It is the intent of the Parties that the procedures in this
Section 13.2 providing for potential removal of the ISO for failure to
perform satisfactorily under this Agreement will be used only when the
ISO has breached this Agreement and all reasonable good faith efforts
have been exhausted under Section 13.1 to resolve concerns regarding
the ISO's performance by means short of removal of the ISO.
13.3 Individual Party Concern with the ISO. In the event that any
NEPOOL Participant believes that the ISO is not performing
satisfactorily within the meaning of Section 13.1, such NEPOOL
Participant may pursue the matter only by submitting a complaint in
writing concerning the matter to the NEPOOL Executive Committee. If
the NEPOOL Executive Committee agrees with the complaint, the
procedures of Section 13.1 shall apply. Notwithstanding the foregoing,
nothing in this Section 13.3 shall restrict the right of any NEPOOL
Participant to file a complaint with or submit any action to the FERC
under the relevant provisions of the Federal Power Act.
13.4 Selection of New ISO. (a)In the event that the NEPOOL
Management Committee vote(s) to terminate the services of the ISO
pursuant to Section 13.2 and such termination is approved by the FERC,
or the ISO gives a notice of resignation pursuant to Section 13.7, the
NEPOOL Executive Committee shall designate ten individuals,
representing a diversity of interests and with input from NECPUC, to
form a subcommittee to select and negotiate a new service agreement
with, or an assignment of this Agreement to, a new independent system
operator.
(b) The selection of the new independent system operator and the
proposed new service agreement or an assignment of this Agreement shall
be subject to approval by a vote of the NEPOOL Management Committee.
(c) If, as a result of the procedure set forth in this Section 13.4,
it is determined that this Agreement shall be assigned to a new
independent system operator, the ISO shall agree to the assignment of
this Agreement to the new independent system operator.
13.5 Transition. During the period that a new independent system
operator is being chosen in accordance with Section 13.4, this
Agreement shall remain in effect and the ISO shall continue to perform
its functions in accordance with this Agreement. The ISO shall also
work with the subcommittee appointed pursuant to Section 13.4 and the
new independent system operator to effect a smooth transition,
including, if requested by such subcommittee, (i) assisting in the
preparation of an inventory of all equipment and supplies, (ii)
assigning all subcontracts and other contracts as directed and (iii)
assisting the training of any personnel of the successor independent
system operator.
13.6 Breach of Contractual Obligations By NEPOOL Participants. (a)
If a NEPOOL Participant fails to perform any of its obligations (other
than its payment obligations) to the ISO under this Agreement, for
reasons other than Force Majeure, the ISO shall provide notice of such
failure to such NEPOOL Participant and to the NEPOOL Executive
Committee. The NEPOOL Executive Committee shall take such measures as
may be permitted under the NEPOOL Agreement to remedy the failure to
perform by the defaulting party.
(b) If a NEPOOL Participant fails to comply with an authorized
direction from the ISO, in circumstances in which such failure is not
permitted by the System Rules and Procedures and the NEPOOL Agreement,
and such failure imperils the safety or reliability of the NEPOOL
Control Area, the ISO shall be authorized to take any action it
deems to be prudent to maintain the safety and reliability of the
NEPOOL Control Area.
13.7 Resignation of the ISO. If, after following the requirements of
Section 13.6, the failure of a NEPOOL Participant to perform an
obligation under this Agreement has not been cured, and such failure to
perform has a material adverse effect on the ISO, the ISO may, in
addition to any other remedies that it may have at law or in equity,
resign by giving notice to the NEPOOL Executive Committee.
13.8 Effect of Removal, Resignation or Assignment. The removal or
resignation of the ISO, or the assignment of this Agreement as
specified in Section 13.4, shall not discharge or relieve the ISO or
NEPOOL from any obligations or liabilities that it may have incurred
under the terms of this Agreement prior to such removal, resignation or
assignment.
13.9 Fundamental Changes. In the event that future changes in the
electric industry shall impact the operation of the NEPOOL Market in a
fundamental manner not contemplated by this Agreement, either Party may
petition the FERC to terminate this Agreement in order to address such
changes in an alternative manner. Any such termination of this
Agreement shall be on such terms as the FERC may specify.
14. GOVERNING LAW
The terms of this Agreement shall be construed and enforced in
accordance with the laws of the State of Connecticut.
15. NOTICES
Except as otherwise expressly provided herein, any notice required
hereunder shall be in writing and may be given by any of the following
means: overnight courier, hand delivery, certified mail (postage
prepaid, return receipt requested), facsimile or other reliable
electronic means.
Notice shall be given to the ISO at:
Notice shall be given to NEPOOL at:
Any notice shall be deemed to have been given (i) upon delivery if
given by overnight courier, hand delivery or certified mail or (ii)
upon confirmation if given by facsimile or other reliable electronic
means. Either Party may change their address for receiving notices
contemplated by this Agreement by delivering notice of its new address
to the other.
16. SUCCESSORS AND ASSIGNS
The rights and obligations created by this Agreement shall inure to and
bind the successors and assigns of the ISO, provided, however, that the
ISO shall not assign such rights and obligations without the written
consent of the NEPOOL Management Committee.
17. RELATIONSHIP OF THE PARTIES
Nothing in this Agreement is intended to create a partnership, joint
venture or other joint legal entity making either Party jointly or
severally liable for the acts or omissions of the other Party.
18. WAIVER
Delay by either Party in enforcing its rights under this Agreement
shall not be deemed a waiver of such rights. Any waiver of rights by
either Party with respect to any default or other matter arising under
this Agreement shall not be deemed a waiver with respect to any default
or other matter arising under this Agreement.
19. SEVERABILITY
If any term, condition, covenant, restriction or other provision of
this Agreement is held by a court or regulatory agency of competent
jurisdiction or by legislative enactment to be invalid, void or
otherwise unenforceable, the remainder of the terms, conditions,
covenants, restrictions and other provisions of this Agreement shall
remain in full force and effect unless such an interpretation would
materially alter the rights and privileges of either Party hereto. If
any term, condition, covenant, restriction or other provision of this
Agreement is held by a court or regulatory agency of competent
jurisdiction or by legislative enactment to be invalid, void or
otherwise unenforceable, the Parties shall attempt to negotiate an
appropriate replacement provision or other revisions to this
Agreement to restore the rights and obligations conferred under the
original Agreement.
20. HEADINGS
The headings used in this Agreement are intended for convenience only
and shall have no effect on the interpretation of any provision of this
Agreement.
21. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each
having the same force and effect as the original.
22. ENTIRE AGREEMENT
This Agreement, including all schedules hereto, and those portions of
the NEPOOL Agreement and the Tariff relating to the obligations of the
ISO, constitute the Parties'
complete and exclusive statement of the terms of the Agreement and the
matters contemplated herein. All prior written and oral
understandings, offers or other communications of every kind pertaining
to the subject matter of this Agreement are hereby superseded.
23. AMENDMENT
This Agreement may be amended only in writing and as agreed to by the
ISO and NEPOOL, acting pursuant to a vote of the NEPOOL Management
Committee.
NEPOOL and the ISO have caused this Agreement to be executed by their
duly authorized representatives as of the date first set forth above.
NEPOOL PARTICIPANTS NEW ENGLAND ISO CORPORATION
By: By:
Chairman Title:
NEPOOL Management Committee
SCHEDULE A
LOCATION OF SATELLITES
1. The "Maine Satellite"
c/o Central Maine Power Company
83 Edison Drive
Augusta, ME 04336-0001
2. CONVEX
c/o Connecticut Valley Electric Exchange
P.O. Box 270
Hartford, CT 06141-0270
3. The "New Hampshire Satellite"
c/o Public Service Company of New Hampshire
1000 Elm Street, P.O. Box 330
Manchester, NH 03105-0330
4. REMVEC
c/o Rhode Island - Eastern Mass - Vermont Energy Control
25 Research Drive
Westborough, MA 01582-0001
SCHEDULE B
The budget for the first Operating Year shall be based on the 1997 NEPOOL
budget of $26.45 million, which includes (i) some expenses and start-up costs
(which may be capitalized and amortized) to be incurred by NEPOOL during the
period from January 1, 1997 through the date that responsibility for operation
of the NEPOOL Control Center and administration of the Tariff is transferred by
NEPOOL to the ISO, (ii) some other types of expenses which will be retained
in a NEPOOL budget and not become part of the ISO budget, and (iii) the
expenses and costs to be incurred by the ISO from the effective date of this
Agreement through December 31, 1997.