Exhibit 10.23.2
RESTATED
NEW ENGLAND
POWER POOL AGREEMENT
(Restated to reflect changes effected by the Fifth Supplement to Thirty-
Third Agreement Amending New England Power Pool Agreement, and the Thirty-Sixth
Agreement Amending New England Power Pool Agreement, and all prior
amendments)
TABLE OF CONTENTS
Page
PART ONE - INTRODUCTION. . . . . . . . . . . . . . . . . . . . .1
SECTION 1 - DEFINITIONS. . . . . . . . . . . . . . . . . . . . .1
1.1 Adjusted Load. . . . . . . . . . . . . . . . . . . . .2
1.2 Adjusted Monthly Peak. . . . . . . . . . . . . . . . .2
1.3 Adjusted Net Interchange . . . . . . . . . . . . . . .2
1.4 AGC Capability . . . . . . . . . . . . . . . . . . . .3
1.5 AGC Entitlement. . . . . . . . . . . . . . . . . . . .3
1.6 Agreement. . . . . . . . . . . . . . . . . . . . . . .4
1.7 Annual Transmission Revenue Requirements . . . . . . .4
1.8 Automatic Generation Control or AGC. . . . . . . . . .4
1.9 Bid Price. . . . . . . . . . . . . . . . . . . . . . .5
1.10 Commission . . . . . . . . . . . . . . . . . . . . . .5
1.11 Control Area . . . . . . . . . . . . . . . . . . . . .5
1.12 Curtailment. . . . . . . . . . . . . . . . . . . . . .6
1.13 Direct Assignment Facilities . . . . . . . . . . . . .7
1.14 Dispatch Price . . . . . . . . . . . . . . . . . . . .7
1.15 EHV PTF. . . . . . . . . . . . . . . . . . . . . . . .8
1.16 Electrical Load. . . . . . . . . . . . . . . . . . . .8
1.17 Eligible Customer. . . . . . . . . . . . . . . . . . .9
1.18 Energy . . . . . . . . . . . . . . . . . . . . . . . 10
1.19 Energy Entitlement . . . . . . . . . . . . . . . . . 10
1.20 Entitlement. . . . . . . . . . . . . . . . . . . . . 11
1.21 Entity . . . . . . . . . . . . . . . . . . . . . . . 11
1.22 Excepted Transaction . . . . . . . . . . . . . . . . 12
1.23 Executive Committee. . . . . . . . . . . . . . . . . 12
1.24 Facilities Study . . . . . . . . . . . . . . . . . . 13
1.25 Firm Contract. . . . . . . . . . . . . . . . . . . . 13
1.26 First Effective Date . . . . . . . . . . . . . . . . 13
1.27 Good Utility Practice. . . . . . . . . . . . . . . . 13
1.28 HQ Contracts . . . . . . . . . . . . . . . . . . . . 14
1.29 HQ Energy Banking Agreement. . . . . . . . . . . . . 14
1.30 HQ Interconnection . . . . . . . . . . . . . . . . . 14
1.31 HQ Interconnection Agreement . . . . . . . . . . . . 15
1.32 HQ Interconnection Capability Credit . . . . . . . . 15
1.33 HQ Interconnection Transfer Capability . . . . . . . 16
1.34 HQ Net Interconnection Capability Credit . . . . . . 17
1.35 HQ Phase I Energy Contract . . . . . . . . . . . . . 17
1.36 HQ Phase I Percentage. . . . . . . . . . . . . . . . 17
1.37 HQ Phase I Transfer Credit . . . . . . . . . . . . . 18
1.38 HQ Phase II Firm Energy Contract . . . . . . . . . . 18
1.39 HQ Phase II Gross Transfer Responsibility. . . . . . 18
1.40 HQ Phase II Net Transfer Responsibility. . . . . . . 19
1.41 HQ Phase II Percentage . . . . . . . . . . . . . . . 19
1.42 HQ Phase II Transfer Credit. . . . . . . . . . . . . 19
1.43 HQ Use Agreement . . . . . . . . . . . . . . . . . . 19
1.44 Installed Capability . . . . . . . . . . . . . . . . 20
1.45 Installed Capability Entitlement . . . . . . . . . . 20
1.46 Installed Capability Responsibility. . . . . . . . . 21
1.47 Installed System Capability. . . . . . . . . . . . . 21
1.48 Interchange Transactions . . . . . . . . . . . . . . 21
1.49 Internal Point-to-Point Service. . . . . . . . . . . 21
1.50 Interruption . . . . . . . . . . . . . . . . . . . . 21
1.51 ISO. . . . . . . . . . . . . . . . . . . . . . . . . 22
1.52 Kilowatt . . . . . . . . . . . . . . . . . . . . . . 22
1.53 Load . . . . . . . . . . . . . . . . . . . . . . . . 22
1.54 Local Network. . . . . . . . . . . . . . . . . . . . 24
1.56 Lower Voltage PTF. . . . . . . . . . . . . . . . . . 24
1.57 Management Committee . . . . . . . . . . . . . . . . 25
1.58 Market Reliability Planning Committee. . . . . . . . 25
1.59 Monthly Peak . . . . . . . . . . . . . . . . . . . . 25
1.60 NEPOOL . . . . . . . . . . . . . . . . . . . . . . . 25
1.61 NEPOOL Control Area. . . . . . . . . . . . . . . . . 25
1.62 NEPOOL Installed Capability. . . . . . . . . . . . . 26
1.63 NEPOOL Installed Capability Responsibility . . . . . 27
1.64 NEPOOL Objective Capability. . . . . . . . . . . . . 27
1.65 New Unit . . . . . . . . . . . . . . . . . . . . . . 27
1.66 Non-Participant. . . . . . . . . . . . . . . . . . . 27
1.67 Operable Capability. . . . . . . . . . . . . . . . . 28
1.68 Operable Capability Entitlement. . . . . . . . . . . 28
1.69 Operable Capability Requirement . . . . . . . . . . 29
1.70 Operable System Capability . . . . . . . . . . . . . 29
1.71 Operating Reserve. . . . . . . . . . . . . . . . . . 29
1.72 Operating Reserve Entitlement. . . . . . . . . . . . 29
1.73 Other HQ Energy. . . . . . . . . . . . . . . . . . . 30
1.74 Participant. . . . . . . . . . . . . . . . . . . . . 30
1.75 Pool-Planned Facility. . . . . . . . . . . . . . . . 31
1.76 Pool-Planned Unit. . . . . . . . . . . . . . . . . . 31
1.77 Power Year . . . . . . . . . . . . . . . . . . . . . 31
1.78 Prior NEPOOL Agreement . . . . . . . . . . . . . . . 31
1.79 Proxy Unit . . . . . . . . . . . . . . . . . . . . . 31
1.80 PTF. . . . . . . . . . . . . . . . . . . . . . . . . 32
1.81 Regional Market Operations Committee . . . . . . . . 32
1.82 Regional Network Service . . . . . . . . . . . . . . 32
1.83 Regional Transmission Operations Committee . . . . . 32
1.84 Regional Transmission Planning Committee . . . . . . 32
1.85 Related Person . . . . . . . . . . . . . . . . . . . 33
1.86 Scheduled Dispatch Period. . . . . . . . . . . . . . 33
1.87 Second Effective Date. . . . . . . . . . . . . . . . 33
1.88 Service Agreement. . . . . . . . . . . . . . . . . . 34
1.89 Summer Capability. . . . . . . . . . . . . . . . . . 34
1.90 Summer Period. . . . . . . . . . . . . . . . . . . . 34
1.91 System Contract. . . . . . . . . . . . . . . . . . . 34
1.92 System Impact Study. . . . . . . . . . . . . . . . . 35
1.93 System Operator. . . . . . . . . . . . . . . . . . . 35
1.94 Target Availability Rate . . . . . . . . . . . . . . 36
1.95 Tariff . . . . . . . . . . . . . . . . . . . . . . . 36
1.96 Third Effective Date . . . . . . . . . . . . . . . . 36
1.97 Through or Out Service . . . . . . . . . . . . . . . 36
1.99 Transmission Customer. . . . . . . . . . . . . . . . 37
1.100 Transmission Provider . . . . . . . . . . . . . 37
1.101 Unit Contract . . . . . . . . . . . . . . . . . 37
1.102 Voting Share. . . . . . . . . . . . . . . . . . 38
1.103 Winter Capability . . . . . . . . . . . . . . . 38
1.104 Winter Period . . . . . . . . . . . . . . . . . 38
1.105 10-Minute Spinning Reserve. . . . . . . . . . . 38
1.106 10-Minute Non-Spinning Reserve. . . . . . . . . 39
1.107 30-Minute Operating Reserve . . . . . . . . . . 40
1.108 33rd Amendment. . . . . . . . . . . . . . . . . 41
1.109 Modification of Certain Definitions When a
Participant Purchases a Portion of Its
Requirements from Another Participant Pursuant
to Firm Contract. . . . . . . . . . . . . . . . 42
SECTION 2 - PURPOSE; EFFECTIVE DATES . . . . . . . . . . . . . 45
2.1 Purpose. . . . . . . . . . . . . . . . . . . . . . . 45
2.2 Effective Dates; Transitional Provisions . . . . . . 45
SECTION 3 - MEMBERSHIP . . . . . . . . . . . . . . . . . . . . 46
3.1 Membership . . . . . . . . . . . . . . . . . . . . . 46
3.2 Operations Outside the Control Area. . . . . . . . . 48
3.3 Lack of Place of Business in New England . . . . . . 48
3.4 Obligation for Deferred Expenses . . . . . . . . . . 49
3.5 Financial Security . . . . . . . . . . . . . . . . . 49
SECTION 4 - STATUS OF PARTICIPANTS . . . . . . . . . . . . . . 50
4.1 Treatment of Certain Entities as Single Participant. 50
4.2 Participants to Retain Separate Identities . . . . . 51
SECTION 5 - NEPOOL OBJECTIVES AND COOPERATION BY
PARTICIPANTS . . . . . . . . . . . . . . . . . . . 52
5.1 NEPOOL Objectives. . . . . . . . . . . . . . . . . . 52
5.2 Cooperation by Participants. . . . . . . . . . . . . 53
PART TWO - GOVERNANCE. . . . . . . . . . . . . . . . . . . . . 54
SECTION 6 - MANAGEMENT COMMITTEE . . . . . . . . . . . . . . . 54
6.1 Membership . . . . . . . . . . . . . . . . . . . . . 54
6.2 Term of Members. . . . . . . . . . . . . . . . . . . 55
6.3 Votes. . . . . . . . . . . . . . . . . . . . . . . . 55
6.4 Number of Votes Necessary for Action . . . . . . . . 64
6.5 Proxies. . . . . . . . . . . . . . . . . . . . . . . 65
6.6 Alternates . . . . . . . . . . . . . . . . . . . . . 65
6.7 Officers . . . . . . . . . . . . . . . . . . . . . . 65
6.8 Meetings . . . . . . . . . . . . . . . . . . . . . . 66
6.9 Notice of Meetings . . . . . . . . . . . . . . . . . 66
6.10 Adoption of Budgets. . . . . . . . . . . . . . . . . 66
6.11 Adoption of Bylaws . . . . . . . . . . . . . . . . . 67
6.12 Establishing Reliability Standards . . . . . . . . . 67
6.13 Appointment and Compensation of NEPOOL Personnel . . 68
6.14 Duties and Authority . . . . . . . . . . . . . . . . 68
6.15 Attendance of Members of Management Committee at
Other Committee Meetings . . . . . . . . . . . . . . 74
SECTION 7 - EXECUTIVE COMMITTEE. . . . . . . . . . . . . . . . 74
7.1 Organization . . . . . . . . . . . . . . . . . . . . 74
7.2 Membership . . . . . . . . . . . . . . . . . . . . . 75
7.3 Term of Members. . . . . . . . . . . . . . . . . . . 77
7.4 Alternates . . . . . . . . . . . . . . . . . . . . . 78
7.5 Votes. . . . . . . . . . . . . . . . . . . . . . . . 78
7.6 Number of Votes Necessary for Action . . . . . . . . 79
7.7 Officers . . . . . . . . . . . . . . . . . . . . . . 79
7.8 Meetings . . . . . . . . . . . . . . . . . . . . . . 80
7.9 Notice of Meetings . . . . . . . . . . . . . . . . . 80
7.10 Notice to Members of Management Committee of
Actions by Executive Committee . . . . . . . . . . . 81
7.11 Appeal of Actions to Management Committee. . . . . . 81
SECTION 8 - MARKET RELIABILITY PLANNING COMMITTEE. . . . . . . 82
8.1 Organization . . . . . . . . . . . . . . . . . . . . 82
8.2 Membership . . . . . . . . . . . . . . . . . . . . . 82
8.3 Term of Members. . . . . . . . . . . . . . . . . . . 84
8.4 Voting . . . . . . . . . . . . . . . . . . . . . . . 85
8.5 Alternates . . . . . . . . . . . . . . . . . . . . . 86
8.6 Officers . . . . . . . . . . . . . . . . . . . . . . 87
8.7 Meetings . . . . . . . . . . . . . . . . . . . . . . 87
8.8 Notice of Meetings . . . . . . . . . . . . . . . . . 87
8.9 Notice to Members of Management Committee. . . . . . 88
8.10 Appeal of Actions to Management Committee. . . . . . 88
8.11 Responsibilities . . . . . . . . . . . . . . . . . . 89
8.12 Functional Planning Committees . . . . . . . . . . . 91
8.13 Appointment of Task Forces . . . . . . . . . . . . . 92
8.14 Consultants, Computer Time and Expenses. . . . . . . 93
8.15 Further Powers and Duties. . . . . . . . . . . . . . 93
8.16 Reports to Management Committee. . . . . . . . . . . 93
8.17 Joint Meetings With Regional Transmission Planning
Committee. . . . . . . . . . . . . . . . . . . . . . 94
SECTION 9 - REGIONAL TRANSMISSION PLANNING COMMITTEE . . . . . 94
9.1 Organization . . . . . . . . . . . . . . . . . . . . 94
9.2 Membership . . . . . . . . . . . . . . . . . . . . . 95
9.3 Term of Members. . . . . . . . . . . . . . . . . . . 97
9.4 Voting . . . . . . . . . . . . . . . . . . . . . . . 97
9.5 Alternates . . . . . . . . . . . . . . . . . . . . . 99
9.6 Officers . . . . . . . . . . . . . . . . . . . . . . 99
9.7 Meetings . . . . . . . . . . . . . . . . . . . . . . 99
9.8 Notice of Meetings . . . . . . . . . . . . . . . . .100
9.9 Notice to Members of Management Committee. . . . . .100
9.10 Appeal of Actions to Management Committee. . . . . .101
9.11 Responsibilities . . . . . . . . . . . . . . . . . .101
9.12 Functional Planning Committees . . . . . . . . . . .103
9.13 Appointment of Task Forces . . . . . . . . . . . . .105
9.14 Consultants, Computer Time and Expenses. . . . . . .105
9.15 Further Powers and Duties. . . . . . . . . . . . . .105
9.16 Reports to Management Committee. . . . . . . . . . .106
9.17 Joint Meetings With Market Reliability Planning
Committee. . . . . . . . . . . . . . . . . . . . . .106
SECTION 10 - REGIONAL MARKET OPERATIONS COMMITTEE. . . . . . .106
10.1 Organization . . . . . . . . . . . . . . . . . . . .106
10.2 Membership . . . . . . . . . . . . . . . . . . . . .107
10.3 Terms of Members . . . . . . . . . . . . . . . . . .109
10.4 Voting . . . . . . . . . . . . . . . . . . . . . . .109
10.5 Alternates . . . . . . . . . . . . . . . . . . . . .111
10.6 Officers . . . . . . . . . . . . . . . . . . . . . .111
10.7 Meetings . . . . . . . . . . . . . . . . . . . . . .111
10.8 Notice of Meetings . . . . . . . . . . . . . . . . .112
10.9 Notice to Members of Management Committee. . . . . .112
10.10 Appeal of Actions to Management Committee . . .113
10.11 Appointment of Task Forces. . . . . . . . . . .113
10.12 Consultants, Computer Time and Expenses . . . .114
10.13 Responsibilities. . . . . . . . . . . . . . . .114
10.14 Further Powers and Duties . . . . . . . . . . .117
10.15 Development of Rules Relating to Non-
Participant Supply and Demand-side Resources. .117
10.16 Joint Meetings with Regional Transmission
Operations Committee. . . . . . . . . . . . . .118
SECTION 11 - REGIONAL TRANSMISSION OPERATIONS COMMITTEE. . . .118
11.1 Organization . . . . . . . . . . . . . . . . . . . .118
11.2 Membership . . . . . . . . . . . . . . . . . . . . .118
11.3 Terms of Members . . . . . . . . . . . . . . . . . .121
11.4 Voting . . . . . . . . . . . . . . . . . . . . . . .121
11.5 Alternates . . . . . . . . . . . . . . . . . . . . .123
11.6 Officers . . . . . . . . . . . . . . . . . . . . . .123
11.7 Meetings . . . . . . . . . . . . . . . . . . . . . .123
11.8 Notice of Meetings . . . . . . . . . . . . . . . . .124
11.9 Notice to Members of Management Committee. . . . . .124
11.10 Appeal of Actions to Management Committee . . .125
11.11 Appointment of Task Forces. . . . . . . . . . .125
11.12 Consultants, Computer Time and Expenses . . . .126
11.13 Responsibilities. . . . . . . . . . . . . . . .126
11.14 Further Powers and Duties . . . . . . . . . . .127
11.15 Joint Meetings with Regional Market Operations
Committee . . . . . . . . . . . . . . . . . . .128
PART THREE - MARKET PROVISIONS . . . . . . . . . . . . . . . .128
SECTION 12 - INSTALLED CAPABILITY AND OPERABLE CAPABILITY
OBLIGATIONS AND PAYMENTS. . . . . . . . . . . . .128
12.1 Obligations to Provide Installed Capability and
Operable Capability. . . . . . . . . . . . . . . . .128
12.2 Computation of Installed Capability
Responsibilities . . . . . . . . . . . . . . . . . .129
12.3 Computation of Operable Capability Requirements. . .147
12.4 Bids to Furnish Installed Capability or Operable
Capability . . . . . . . . . . . . . . . . . . . . .148
12.5 Consequences of Deficiencies in Installed
Capability Responsibility. . . . . . . . . . . . . .148
12.6 Consequences of Deficiencies in Operable Capability
Requirements . . . . . . . . . . . . . . . . . . . .151
12.7 Payments to Participants Furnishing Installed
Capability and Operable Capability . . . . . . . . .153
SECTION 13 - OPERATION, GENERATION, OTHER RESOURCES,
AND INTERRUPTIBLE CONTRACTS . . . . . . . . . . .155
13.1 Maintenance and Operation in Accordance with Good
Utility Practice . . . . . . . . . . . . . . . . . .155
13.2 Central Dispatch . . . . . . . . . . . . . . . . . .155
13.3 Maintenance and Repair . . . . . . . . . . . . . . .156
13.4 Objectives of Day-to-Day System Operation. . . . . .157
13.5 Satellite Membership . . . . . . . . . . . . . . . .158
SECTION 14 - INTERCHANGE TRANSACTIONS. . . . . . . . . . . . .158
14.1 Obligation for Energy, Operating Reserve and
Automatic Generation Control . . . . . . . . . . . .158
14.2 Obligation to Bid or Schedule, and Right to
Receive Energy, Operating Reserve and Automatic
Generation Control . . . . . . . . . . . . . . . . .162
14.3 Amount of Energy, Operating Reserve and Automatic
Generation Control Received or Furnished . . . . . .168
14.4 Payments by Participants Receiving Energy Service,
Operating Reserve and Automatic Generation Control. 171
14.5 Payments to Participants Furnishing Energy Service,
Operating Reserve, and Automatic Generation Control.173
14.6 Energy Transactions with Non-Participants. . . . . .176
14.7 Participant Purchases Pursuant to Firm Contracts
and System Contracts . . . . . . . . . . . . . . . .178
14.8 Determination of Energy Clearing Price . . . . . . .180
14.9 Determination of Operating Reserve Selling Price
and Clearing Price . . . . . . . . . . . . . . . . .181
14.10 Determination of AGC Clearing Price . . . . . .185
14.11 Funds to or from which Payments are to be Made.186
14.12 Development of Rules Relating to Nuclear and
Hydroelectric Generating Facilities, Limited-
Fuel Generating Facilities, and Interruptible
Loads . . . . . . . . . . . . . . . . . . . . .196
14.13 Dispatch and Billing Rules During Energy
Shortages . . . . . . . . . . . . . . . . . . .197
14.14 Congestion Uplift.. . . . . . . . . . . . . . .197
14.15 Additional Uplift Charges. . . . . . . . . . .202
PART FOUR - TRANSMISSION PROVISIONS. . . . . . . . . . . . . .203
SECTION 15 - OPERATION OF TRANSMISSION FACILITIES. . . . . . .203
15.1 Definition of PTF. . . . . . . . . . . . . . . . . .203
15.2 Maintenance and Operation in Accordance with Good
Utility Practice . . . . . . . . . . . . . . . . . .207
15.3 Central Dispatch . . . . . . . . . . . . . . . . . .207
15.4 Maintenance and Repair . . . . . . . . . . . . . . .207
15.5 Additions to or Upgrades of PTF. . . . . . . . . . .208
SECTION 16 - SERVICE UNDER TARIFF. . . . . . . . . . . . . . .211
16.1 Effect of Tariff . . . . . . . . . . . . . . . . . .211
16.2 Obligation to Provide Regional Service . . . . . . .211
16.3 Obligation to Provide Local Network Service. . . . .212
16.4 Transmission Service Availability. . . . . . . . . .215
16.5 Transmission Information . . . . . . . . . . . . . .215
16.6 Distribution of Transmission Revenues. . . . . . . .216
16.7 Changes to Tariff. . . . . . . . . . . . . . . . . .219
SECTION 17 - POOL-PLANNED UNIT SERVICE . . . . . . . . . . . .220
17.1 Effective Period . . . . . . . . . . . . . . . . . .220
17.2 Obligation to Provide Service. . . . . . . . . . . .220
17.3 Rules for Determination of Facilities Covered by
Particular Transactions. . . . . . . . . . . . . . .221
17.4 Payments for Uses of EHV PTF During the
Transition Period. . . . . . . . . . . . . . . . . .223
17.5 Payments for Uses of Lower Voltage PTF . . . . . . .228
17.6 Use of Other Transmission Facilities by
Participants . . . . . . . . . . . . . . . . . . . .228
17.7 Limits on Individual Transmission Charges. . . . . .229
PART FIVE - GENERAL. . . . . . . . . . . . . . . . . . . . . .230
SECTION 18 - GENERATION AND TRANSMISSION FACILITIES. . . . . .230
18.1 Designation of Pool-Planned Facilities . . . . . . .230
18.2 Construction of Facilities . . . . . . . . . . . . .231
18.3 Protective Devices for Transmission Facilities and
Automatic Generation Control Equipment . . . . . . .231
18.4 Review of Participant's Proposed Plans . . . . . . .232
18.5 Participant to Avoid Adverse Effect. . . . . . . . .233
SECTION 19 - EXPENSES. . . . . . . . . . . . . . . . . . . . .235
19.1 Annual Fee . . . . . . . . . . . . . . . . . . . . .235
19.2 NEPOOL Expenses. . . . . . . . . . . . . . . . . . .235
SECTION 20 - INDEPENDENT SYSTEM OPERATOR . . . . . . . . . . .236
SECTION 21 - MISCELLANEOUS PROVISIONS. . . . . . . . . . . . .242
21.1 Alternative Dispute Resolution . . . . . . . . . . .242
21.2 Payment of Pool Charges; Termination of Status as
Participant. . . . . . . . . . . . . . . . . . . . .255
21.3 Assignment . . . . . . . . . . . . . . . . . . . . .259
21.4 Force Majeure. . . . . . . . . . . . . . . . . . . .260
21.5 Waiver of Defaults . . . . . . . . . . . . . . . . .261
21.6 Other Contracts. . . . . . . . . . . . . . . . . . .261
21.7 Liability and Insurance. . . . . . . . . . . . . . .262
21.8 Records and Information. . . . . . . . . . . . . . .263
21.9 Consistency with NPCC and NERC Standards . . . . . .264
21.10 Construction. . . . . . . . . . . . . . . . . .264
21.11 Amendment . . . . . . . . . . . . . . . . . . .264
21.12 Termination . . . . . . . . . . . . . . . . . .267
21.13 Notices to Participants . . . . . . . . . . . .267
21.14 Severability and Renegotiation. . . . . . . . .269
21.15 No Third-Party Beneficiaries. . . . . . . . . .270
21.16 Counterparts. . . . . . . . . . . . . . . . . .270
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 July 20, 1998.
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 1.109):
1.1 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.
1.2 ADJUSTED MONTHLY PEAK of a Participant for a month is its Monthly
Peak, provided that if there has been a transfer between Participants,
in whole or part, of the responsibilities under this Agreement during
such month pursuant to a Firm Contract, the Adjusted Monthly Peak of
each such Participant shall reflect the effect of such transaction,
but the Adjusted Monthly Peak of a Participant shall not be changed
from the Monthly Peak to reflect the effect of any other transaction.
1.3 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 associated electrical 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.
1.4 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.
1.5 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.
1.6 AGREEMENT is this restated contract and attachments, including the
Tariff, as amended and restated from time to time.
1.7 ANNUAL TRANSMISSION REVENUE REQUIREMENTS of a Participant's PTF or
of all Participants' PTF for purposes of this Agreement are the
amounts determined in accordance with Attachment F to the Tariff.
1.8 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.
1.9 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.
1.10 COMMISSION is the Federal Energy Regulatory Commission.
1.11 CONTROL AREA is 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 of the applicable regional
reliability council or the North American Electric
Reliability Council; and
(4) provide sufficient generating capacity to maintain operating
reserves in accordance with Good Utility Practice.
1.12 CURTAILMENT is a reduction in firm or non-firm transmission service
in response to a transmission capacity shortage as a result of system
reliability conditions.
1.13 DIRECT ASSIGNMENT FACILITIES are facilities or portions of
facilities that are Non-PTF and are constructed for the sole
use/benefit of a particular Transmission Customer requesting service
under the Tariff or Generator Owner or Interconnection Requester
requesting an interconnection. Direct Assignment Facilities shall be
specified in a separate agreement with the Transmission Provider whose
transmission system is to be modified to include and/or interconnect
with said Facilities, shall be subject to applicable Commission
requirements and shall be paid for by the Transmission Customer or a
Generator Owner or Interconnection Requester in accordance with the
separate agreement and not under the Tariff.
1.14 DISPATCH PRICE of a generating unit or combination 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 Contract, 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.
1.15 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.
1.16 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)
deliveries between Entities constituting a single Participant, or (iv)
other electrical losses, if and as appropriate), of
(a) kilowatthours provided by such Participant to its retail
customers for consumption, PLUS
(b) kilowatthours of use by such Participant, 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.
1.17 ELIGIBLE CUSTOMER is the following: (i) Any Participant that is
engaged, or proposes to engage, in the wholesale or retail electric
power business is an Eligible Customer under the Tariff. (ii) Any
electric utility (including any power marketer), Federal power
marketing agency, or any person generating electric energy for sale or
for resale is an Eligible Customer under the Tariff. Electric energy
sold or produced by such entity may be electric energy produced in the
United States, Canada or Mexico. However, with respect to
transmission service that the Commission is prohibited from ordering
by Section 212(h) of the Federal Power Act, such entity is eligible
only if the service is provided pursuant to a state requirement that
the Transmission Provider with which that entity is directly
interconnected offer the unbundled transmission service, or pursuant
to a voluntary offer of such service by the Transmission Provider with
which that entity is directly interconnected. (iii) Any end user
taking or eligible to take unbundled transmission service pursuant to
a state requirement that the Transmission Provider with which that end
user is directly interconnected offer the transmission service, or
pursuant to a voluntary offer of such service by the Transmission
Provider, is an Eligible Customer under the Tariff.
1.18 ENERGY is power produced in the form of electricity, measured in
kilowatthours or megawatthours.
1.19 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.
1.20 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.
1.21 ENTITY is any person or organization 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 that is either:
(a) 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 a principal or broker, of
Installed Capability, Operable Capability, Energy,
Operating Reserve, and/or AGC for resale); or
(b) an end user of electricity that is taking or eligible to
take unbundled transmission service pursuant to an effective
state requirement that the Participant that is the
Transmission Provider with which that end user is directly
interconnected offer the transmission service, or pursuant
to a voluntary offer of unbundled transmission service to
that end user by the Participant that is the Transmission
Provider with which that end user is directly
interconnected.
1.22 EXCEPTED TRANSACTION is a transaction specified in Section 25 of
the Tariff for the applicable period specified in that Section.
1.23 EXECUTIVE COMMITTEE is the committee established pursuant to
Section 7.
1.24 FACILITIES STUDY is an engineering study conducted pursuant to this
Agreement or the 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 or interconnection.
1.25 FIRM CONTRACT is any contract, other than a Unit Contract, for the
purchase of Installed Capability, Operable Capability, Energy,
Operating Reserves, and/or AGC, 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.
1.26 FIRST EFFECTIVE DATE is March 1, 1997.
1.27 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.
1.28 HQ CONTRACTS are the HQ Interconnection Agreement, the HQ Phase I
Energy Contract, and the HQ Phase II Firm Energy Contract.
1.29 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.
1.30 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.
1.31 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.
1.32 HQ INTERCONNECTION CAPABILITY CREDIT of a Participant for a month
during the Base Term (as defined in Section 1.38) 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 HQ 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.
1.33 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 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.
1.34 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.
1.35 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.
1.36 HQ PHASE I PERCENTAGE is the percentage of the total HQ
Interconnection Transfer Capability represented by the HQ Phase I
Transfer Capability.
1.37 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.
1.38 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.
1.39 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 1.38) 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.
1.40 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.
1.41 HQ PHASE II PERCENTAGE is the percentage of the total HQ
Interconnection Transfer Capability represented by the HQ Phase II
Transfer Capability.
1.42 HQ PHASE II TRANSFER CREDIT is 90/131 of the HQ Phase II Transfer
Capability, or such other fraction of the HQ Phase II Transfer
Capability as the Management Committee may establish.
1.43 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.
1.44 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.
1.45 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
Firm Contracts or 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.
1.46 INSTALLED CAPABILITY RESPONSIBILITY * of a Participant for any
month is the number of Kilowatts determined in accordance with Section
12.2.
1.47 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.
1.48 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.
1.49 INTERNAL POINT-TO-POINT SERVICE is the transmission service by that
name provided pursuant to Section 19 of the Tariff.
1.50 INTERRUPTION is a reduction in non-firm transmission service due to
economic reasons pursuant to Section 28.7 of the Tariff, other than a
reduction which results from a failure to dispatch a generating
resource, including a contract, used in a transaction requiring In
Service or Through or Out Service which is out of merit order.
1.51 ISO is the Independent System Operator which is responsible 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.
1.52 KILOWATT is a kilowatthour per hour.
1.53 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 provided 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, exclusive of use
by such Participant for the operation and maintenance of its
generating unit or units, 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.
1.54 LOCAL NETWORK is the transmission facilities constituting a local
network identified on Attachment E to the Tariff, and any 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.
1.55 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.
1.56 LOWER VOLTAGE PTF are all PTF facilities other than EHV PTF.
1.57 MANAGEMENT COMMITTEE is the committee established pursuant to
Section 6.
1.58 MARKET RELIABILITY PLANNING COMMITTEE is the committee established
pursuant to Section 8.
1.59 MONTHLY PEAK of a Participant for a month is the maximum Adjusted
Load of the Participant during any hour in the month.
1.60 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.
1.61 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.
1.62 NEPOOL INSTALLED CAPABILITY at any particular time is the sum of
the Installed System Capabilities of all Participants at such time.
1.63 NEPOOL INSTALLED CAPABILITY RESPONSIBILITY for any month is the sum
of the Installed Capability Responsibilities of all Participants
during that month.
1.64 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.
1.65 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.
1.66 NON-PARTICIPANT is any entity which is not a Participant.
1.67 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 is
available to respond within an appropriate period to a schedule
submitted by a Participant for the hour in accordance with market
operation rules approved by the Regional Market Operations Committee.
1.68 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.
1.69 OPERABLE CAPABILITY REQUIREMENT of a Participant for any hour is
the number of Kilowatts determined in accordance with Section 12.3.
1.70 OPERABLE SYSTEM CAPABILITY of a Participant in any hour is the sum
of such Participant's Operable Capability Entitlements.
1.71 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.
1.72 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.
1.73 OTHER HQ ENERGY is Energy purchased under the HQ Phase I Energy
Contract which is classified as "Other Energy" under that contract.
1.74 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.
1.75 POOL-PLANNED FACILITY is a generation or transmission facility
designated as "pool-planned" pursuant to Section 18.1.
1.76 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).
1.77 POWER YEAR is the period of twelve months commencing on November 1.
1.78 PRIOR NEPOOL AGREEMENT is the NEPOOL Agreement as in effect on
December 1, 1996.
1.79 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(a)(2).
1.80 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.
1.81 REGIONAL MARKET OPERATIONS COMMITTEE is the committee established
pursuant to Section 10.
1.82 REGIONAL NETWORK SERVICE is the transmission service by that name
provided pursuant to Section 14 of the Tariff.
1.83 REGIONAL TRANSMISSION OPERATIONS COMMITTEE is the committee
established pursuant to Section 11.
1.84 REGIONAL TRANSMISSION PLANNING COMMITTEE is the committee
established pursuant to Section 9.
1.85 RELATED PERSON of a Participant is either (i) a corporation,
partnership, business trust or other business organization 10% or more
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 10% or more of the
stock or other equity interest in the Participant, or (iii) a
corporation, partnership, business trust or other business
organization 10% or more 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 10% or
more of the stock or other equity interest in the Participant.
1.86 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).
1.87 SECOND EFFECTIVE DATE is the date on which the provisions of Part
Three of the Agreement (other than the Installed Capability
Responsibility provisions of Section 12) shall become effective and
shall be such date as the Commission may fix on its own or pursuant to
a request of the Management Committee.
1.88 SERVICE AGREEMENT is the initial agreement and any amendments or
supplements thereto entered into by the Transmission Customer and the
System Operator for service under the Tariff.
1.89 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).
1.90 SUMMER PERIOD in each Power Year is the four-month period from June
through September.
1.91 SYSTEM CONTRACT is any contract for the purchase 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 Reserves and/or AGC.
1.92 SYSTEM IMPACT STUDY is an assessment pursuant to Part V, VI or VII
of the Tariff of (i) the adequacy of the NEPOOL Transmission System to
accommodate a request for the interconnection of a new or materially
changed generating unit or a new or materially changed interconnection
to another Control Area or new Regional Network Service, Internal
Point-to-Point Service or Through or Out Service, and (ii) whether any
additional costs may be required to be incurred in order to provide
the interconnection or transmission service.
1.93 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 NEPOOL control center and the
administration of the Tariff. The System Operator is the ISO.
1.94 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.
1.95 TARIFF is the NEPOOL Open Access Transmission Tariff set out in
Attachment B to the Agreement, as modified and amended from time to
time.
1.96 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.
1.97 THROUGH OR OUT SERVICE is the transmission service by that name
provided pursuant to Section 18 of the Tariff.
1.98 TRANSITION PERIOD is the five-year period commencing on March 1,
1997.
1.99 TRANSMISSION CUSTOMER is 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
48 of the Tariff 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 the
Tariff.
1.100TRANSMISSION PROVIDER is the Participants, collectively, which own
PTF and are in the business of providing transmission service or
provide service under a local open access transmission tariff, or in
the case of a municipal Participant, would be required to do so if
requested pursuant to the reciprocity requirements specified in the
Tariff, or an individual such Participant, whichever is appropriate.
1.101UNIT CONTRACT is a 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 Reserves and/or AGC if, or to the extent that, a specific
electric generating unit or units is or can be operated.
1.102VOTING SHARE has the meaning specified in Section 6.3.
1.103WINTER 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).
1.104WINTER PERIOD in each Power Year is the seven-month period from
November through May and the month of October.
1.10510-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 approved by the Regional Market
Operations Committee is necessary; and (2) any portion of the
Electrical Load of a Participant that the System Operator is able to
verify as capable of providing contingency protection by immediately
on demand reducing Energy requirements within ten minutes and
maintaining such reduced Energy requirements for so long as the System
Operator determines in accordance with market operation rules approved
by the Regional Market Operations Committee is necessary.
1.10610-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 approved by the
Regional Market Operations Committee is necessary; (2) any portion of
a Participant's Electrical Load that the System Operator is able to
verify as capable of providing contingency protection by reducing
Energy requirements within ten minutes and maintaining such reduced
Energy requirements for so long as the System Operator determines in
accordance with market operations rules approved by the Regional
Market Operations Committee is necessary; and (3) any other resources
and requirements that were able to be designated for the hour as 10-
Minute Spinning Reserve but were not designated by the System Operator
for such purpose in the hour.
1.10730-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 and sustaining such Energy output for so long as the System
Operator determines in accordance with market operation rules approved
by the Regional Market Operations Committee is necessary; (2) any
portion of the Electrical Load of a Participant that the System
Operator is able to verify as capable of providing contingency
protection by reducing Energy requirements within thirty minutes and
maintaining such reduced Energy requirements for so long as the System
Operator determines in accordance with market operation rules approved
by the Regional Market Operations Committee is necessary; and (3) any
other resources and requirements that were able to be designated for
the hour as 10-Minute Spinning Reserve or 10-Minute Non-Spinning
Reserve but were not designated by the System Operator for such
purposes in the hour.
1.10833RD AMENDMENT is the Thirty-Third Agreement Amending New England
Power Pool Agreement dated as of December 1, 1996.
1.109MODIFICATION 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 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
Participant to receive such amounts of electricity as it may
require to supply its electric needs (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 X wherein:
-
Y
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)(1), computed as if the Firm Contract did
not exist.
Terms used in this Agreement that are not defined above, 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 became
effective on the First Effective Date and replaced 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 provisions
of Sections 12.1(a), 12.2, 12.4 (as to Installed Capability only),
12.5 and 12.7(a) of this Agreement became effective on April 1, 1998
and replaced on such date the provisions of Section 9 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.
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 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
rights in supply or demand-side resources or owns transmission and/or
distribution facilities, located outside of the NEPOOL Control Area,
such Load and resources 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
facilities or its rights in demand side-resources 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 such Entitlements or rights
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 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, or equity interest in, 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.
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:
V= .15833 ( P ) + .15833 ( E ) + .15833 ( C ) + .15833 ( X )
--- --- --- ---
P{1} E{1} C{1} X{1}
+ .15833 ( M ) + .15833 ( R ) + .05 ( Y )
--- --- ---
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 sum for each month of the Participant's Load for each
hour of the month 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 for the most recently completed twelve months of
the sum for each month of the Loads of all Participants for
each hour of the month 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
Section 12.
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 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 or members representing any Participant and
its Related Persons 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 or members 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 Committee 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: 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: 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: 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.
Other 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 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 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: 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 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 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.
10.3 TERMS OF MEMBERS. The member of the Regional Market Operations
Committee appointed by the ISO shall serve until replaced by the ISO.
Other 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 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 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 of the
Regional Market Operations Committee both participates in the
wholesale bulk power market and owns PTF, the member appointed by the
Participant shall 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.
10.10APPEAL 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.
10.11APPOINTMENT 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.
10.12CONSULTANTS, 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.
10.13RESPONSIBILITIES. 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) 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;
(b) 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, and (ii)
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;
(c) 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;
(d) 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;
(e) 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;
(f) 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;
(g) 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
(h) calculating and equitably apportioning losses incurred in
connection with Interchange Transactions.
10.14FURTHER 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.
10.15DEVELOPMENT 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 resources
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.
10.16JOINT 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: 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. Other 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 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 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 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 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.
11.10APPEAL 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.
11.11APPOINTMENT 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.
11.12CONSULTANTS, 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.
11.13RESPONSIBILITIES. 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) 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;
(b) coordinating studies of, and providing information to
Participants on, maintenance schedules for the supply and
demand-side resources and transmission facilities of the
Participants;
(c) 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; and
(d) establishing or approving appropriate billing procedures for
transmission service pursuant to this Agreement and the
Tariff.
11.14FURTHER 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.
11.15JOINT 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)
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 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).
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 Installed Capability
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 Period, 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 or combination of units 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. 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 (as
defined in Section 15.37B of the Prior NEPOOL Agreement) 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.
(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 fees for services
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 fees for
services 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 for the month
under Section 12.5, excluding any applicable fees for services
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 for the hour
under Section 12.6, excluding any applicable uplift charges
assessed under Section 14.15 and any applicable fees for services
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 to other Participants in the hour pursuant to
Firm Contracts or System Contracts, 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 for each hour an AGC obligation equal
to its share of AGC required for the NEPOOL Control Area in the
hour. Subject to adjustment pursuant to Section 14.6, a
Participant's share of AGC required for any hour shall be
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,
or pursuant to arrangements with Non-Participants entered
into under Section 14.6, 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 Entitlement 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 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 Energy Entitlements pursuant to Firm
Contracts or System Contracts which may be scheduled by the
buyer in accordance with Section 14.7(b) no later than noon
on the preceding day or such later time as is 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 period 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 period 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 at 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 or units may submit a short-notice
schedule for the operation or dispatch of any or all of the
Energy available from such unit or units during the current
or a 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 Energy, Operating Reserve or
AGC Entitlements from the unit or units covered by the
Participant's 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 schedule is furnished at least
one hour in advance of the start of the transaction. In
addition, a Participant may, on the 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 applicable uplift
charges assessed to the Participant under Sections 14.14 and
14.15 of this Agreement and Section 24 of the Tariff and any
applicable fees for services 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 fees for services 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 fees for services 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 under the Agreement 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 under the
Agreement shall receive therefor an amount calculated as follows:
(i) the AGC Clearing Price for the hour as defined and
determined in accordance with Section 14.10, TIMES the
change in AGC output of the Participant's AGC Entitlements
which the System Operator requested in the hour, TIMES an
appropriate unit conversion factor as determined in
accordance with market operation rules approved by the
Regional Market Operations Committee; PLUS
(ii) an AGC reservation payment for each AGC Entitlement that the
System Operator designated for AGC in the hour calculated as
(A) the AGC Clearing Price in effect for the hour, TIMES (B)
the level of AGC the System Operator determines to be
available in the hour from the Entitlement, TIMES (C) the
portion of the hour during which the System Operator had
designated the Entitlement for AGC; PLUS
(iii)a payment that compensates the Participant for its lost
opportunity cost, if any, for the operation of the
generating unit or combination of units designated for AGC
in the hour below the desired level of output in order to
provide AGC, as determined in accordance with market
operation rules approved by the Regional Market Operations
Committee.
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 of this Agreement and/or Section 24
of the Tariff and any applicable fees for services 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. If and to the extent
necessary to implement the agreement between the parties, such
market operation rules, upon approval by the Management
Committee, shall supersede the provisions of the Agreement that
otherwise apply for determination of the respective
responsibilities and Entitlements of the parties.
(b) In the event a Participant has the right to receive Operable
Capability, Energy, Operating Reserve and/or AGC from a Non-
Participant under a System Contract or a Firm Contract, such
Contract shall be treated as nearly as possible as if it were a
Unit Contract for an Operable Capability Entitlement, Energy
Entitlement, Operating Reserve Entitlement and/or AGC
Entitlement, as applicable, PROVIDED THAT, in the case of Energy,
Operating Reserve, and/or AGC, the System Contract or Firm
Contract permits the scheduling of deliveries of such 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.
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.
14.10DETERMINATION 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 "AGC
Capability Price" for the "AGC Clearing Price Block," as both terms
are defined below in this Section 14.10. The AGC Capability Price for
each hour for each AGC Entitlement designated by the System Operator
to provide AGC in the hour shall be a cost per unit of AGC capability
based on the Bid Price for the Entitlement for the hour divided by the
amount of AGC available in the hour from that Entitlement. The AGC
Clearing Price Block shall be identified by the System Operator 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 to provide AGC in the hour and were deemed pursuant to
Section 14.3(c) to have been received by Participants for the hour.
14.11FUNDS TO OR FROM WHICH PAYMENTS ARE TO BE MADE.
(a) All payments for Energy, Operating Reserves or AGC furnished
or received, all uplift charges paid pursuant to this
Section 14 of this Agreement and Section 24 of the Tariff,
and all fees for services paid pursuant to Section 19.2, and
any payments by Non-Participants for ancillary services
under Schedules 2-7 to the Tariff or pursuant to
arrangements referenced in Section 14.6, shall be allocated
each month 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 pursuant to Section 14.6(b) for such
Energy by each Participant which is a participant in the
Phase I arrangements with Hydro-Quebec 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 pursuant to Section 14.6(b) for such Energy by
each Participant which is a participant in the Phase II
arrangements with Hydro-Quebec 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 pursuant to Section
14.6(b) for such Energy shall be determined for each
Participant which is a participant in the Phase I or Phase
II arrangements with Hydro-Quebec. 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) (A) 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 be paid, and (B)
amounts owed to Hydro-Quebec for the month for Energy
deemed to be furnished pursuant to Section 14.6(b) to
Participants which are not participants in the Phase I
or Phase II arrangements with Hydro-Quebec shall be
paid and, in the event the price paid by any such
Participant for such Energy is the Energy Clearing
Price, the excess, if any, of the Energy Clearing Price
over the amount owed to Hydro-Quebec shall be paid to
the Participant;
(ii) amounts paid by Participants for applicable fees for
services 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
(I) in the case of any Participant which is not a
participant in the Phase I or Phase II arrangements
with Hydro-Quebec, be paid to such Participant, and
(II) in the case of any Participant which is a
participant in the Phase I or Phase II arrangements
with Hydro-Quebec, 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.
14.12DEVELOPMENT 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.
14.13DISPATCH 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.
14.14CONGESTION UPLIFT.
(a) It shall be the responsibility of the Management Committee
to review prior to January 1, 2000 the Congestion Costs
incurred with the new market arrangements contemplated by
Section 14 of this Agreement and with retail access, and to
determine whether subsection (b) of this Section, together
with an amendment specifying the rights of Participants and
Non-Participants across a constrained interface within the
NEPOOL Control Area and to make other necessary or
appropriate changes in subsection (b), all of the provisions
of which shall be considered for modification, or some other
modified or substitute provision dealing with the allocation
of Congestion Costs in a constrained transmission area,
should be made effective on January 1, 2000 and after the
preparation of necessary implementing rules and computer
software or on an earlier or later effective date. If the
Management Committee determines that such a provision should
be made effective, it shall recommend to the Participants
any required amendment to the Agreement and/or the Tariff
and a schedule for implementation which will permit
sufficient time for the development of necessary rules and
computer software. If the Management Committee is unable to
agree on such a determination prior to January 1, 2000 any
Participant or group of Participants may propose such an
amendment and schedule in a filing with the Commission.
(b) Commencing on January 1, 2000, but subject to the adoption
of an amendment specifying the rights of Participants and
Non-Participants across constrained interfaces within the
NEPOOL Control Area and making other necessary or
appropriate changes in the language of this subsection (b),
and the preparation of necessary implementing rules and
computer software, (or on such earlier or later date as is
fixed by the Management Committee in accordance with
subsection (a) of this Section), whenever limitations in
available transmission capacity in any hour require that the
System Operator dispatch out-of-merit resources that are bid
by the Participants in any area which is determined to be a
constrained transmission area in accordance with market
operation rules approved by the Regional Market Operations
Committee and the Regional Transmission Operations
Committee, the System Operator shall determine for the
constrained transmission area the aggregate Congestion Costs
for the hour.
Such Congestion Costs for each hour shall be allocated to
and paid by Participants and Non-Participants as a
congestion uplift as follows:
(i) In accordance with market operation rules approved by
the Regional Market Operations Committee and the
Regional Transmission Operations Committee, the System
Operator shall identify for each Participant and Non-
Participant the difference in megawatt hours, if any,
between (A) Electrical Load served by the Participant
or Non-Participant in the constrained area and
transactions by the Participant or Non-Participant
occurring in the hour which utilized the constrained
interface to move Energy through the constrained area
and (B) the Participant's or Non-Participant's in-merit
Energy Entitlements located in the constrained area
that were used in the hour to serve such Electrical
Load, taking into account Firm Contracts and System
Contracts between Participants and electrical losses,
if and as appropriate.
(ii) The System Operator shall identify for each Participant
and Non-Participant the megawatt hours, if any, of the
rights of that Participant or Non-Participant to use
the then effective transfer capability across the
constrained interface.
(iii)The System Operator shall identify for each Participant
and Non-Participant the megawatt hours, if any, by
which the amount determined pursuant to clause (i)
above for that Participant or Non-Participant exceeds
the amount determined for that Participant or Non-
Participant pursuant to clause (ii) above. If the
clause (i) amount exceeds the clause (ii) amount, the
Participant or Non-Participant 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, and such Congestion
Costs shall be included, as a transmission charge, in
the Regional Network Service, Internal Point-to-Point
Service or Through or Out Service charge, whichever is
applicable.
(c) As used in this Section 14.14, the "Congestion Cost" of an
out-of-merit resource for an hour means the product of (i)
the difference between its Dispatch Price and the Energy
Clearing Price for the hour, times (ii) the number of
megawatt hours of out-of-merit generation produced by the
resource for the hour.
14.15ADDITIONAL 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 of this
Agreement and Section 24 of the Tariff. 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 owned by Participants rated 69 kV or above
required to allow energy from significant power sources to move freely
on the New England transmission network, and include:
1. All transmission facilities owned by Participants classified as
PTF, but only so long as, in the case of each such facility, the
facility remains in service and continues to meet the definition
of PTF as in effect under this Agreement on April 1, 1998.
2. All other transmission lines and associated facilities owned by
Participants rated 69 kV and above, except for lines and
associated facilities that contribute little or no parallel
capability to the NEPOOL Transmission System (as defined in the
Tariff). The following do not constitute PTF:
(a) Those lines and associated facilities which are required to
serve local load only.
(b) Generator leads, which are defined as radial transmission
from a generation bus to the nearest point on the NEPOOL
Transmission System.
(c) Lines that are normally operated open.
(d) High voltage direct current lines and associated facilities
which serve to connect the PTF system to a system outside
the NEPOOL Control Area.
3. Parallel linkages in network stations owned by Participants
(including substation facilities such as transformers, circuit
breakers and associated equipment) interconnecting the lines
which constitute PTF.
4. Rights of way and land owned by Participants required for the
installation of facilities which constitute PTF under (1), (2) or
(3) above.
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 or catalogue 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, from two geographically separate points on
the NEPOOL Transmission System, the supply to a load bus
from the NEPOOL Transmission System are included.
(iii)Lines which loop, from two geographically separate points on
the NEPOOL Transmission System, the connections between a
generator bus and the NEPOOL Transmission System are
included.
(iv) Radial connections or connections from a generating station
to a single substation or switching station on the NEPOOL
Transmission System are excluded.
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 by the Regional
Transmission Operations Committee.
15.5 ADDITIONS TO OR UPGRADES OF PTF. The possible need for an addition to
or upgrade of PTF may be identified in connection with an application
or request for service under the Tariff, or in connection with a
request for the installation of or material change to a generation or
transmission facility, or may be separately identified by a NEPOOL
committee, a Participant or the System Operator. In such cases, a
study, if necessary, to assess available transmission capacity and, if
necessary, a System Impact Study and a Facility Study shall be
performed by the affected Participant(s) in whose Local Network(s) the
addition or upgrade would or might be effected or their designee(s),
or the Regional Transmission Planning Committee and/or the System
Operator, in the case of a System Impact Study, or the Committee's or
the System Operator's designee(s) 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, as appropriate, in accordance
with the affected Participant's Local Network Service Tariff, or in
accordance with the applicable methodology specified in Attachments C
and D to the Tariff, and the provisions of the Local Network Service
Tariff or the applicable provisions of Attachments I and J to the
Tariff shall apply, as appropriate, with respect to the payment of the
costs of the study and the other matters covered thereby.
If any of the studies referred to above indicates that new PTF
facilities or a facility modification or other PTF upgrades are
necessary to provide the requested service, or in connection with a
new or modified generation or transmission facility, or otherwise in
order 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, upon approval of
the studies by the Regional Transmission Planning Committee, subject
to review by the System Operator, one or more Transmission Providers
shall be designated by the Regional Transmission Planning Committee,
subject to review by the System Operator, to design and effect the
construction or modification.
Upon the designation of a Transmission Provider to design and effect a
PTF addition or upgrade and the fixing of the cost responsibilities of
the Participants and Non-Participants and agreement as to the security
and other provisions of said arrangement, the Transmission Provider
designated to perform the construction shall, in accordance with the
terms of such arrangement and subject to Sections 18.4 and 18.5, use
its best efforts to obtain any necessary public approvals or permits,
to acquire any required rights of way or other property, and to effect
the proposed construction or modification.
Responsibility for the costs of new PTF or any modification or other
upgrade of PTF required in connection with an application or request
for service under the Tariff and any related matter shall be
determined in accordance with Parts V and VI and Schedule 11 to the
Tariff, including without limitation the provisions relating to
responsibility for the costs of new PTF or modifications or other
upgrades to PTF exceeding regional system, regulatory or other public
requirements set forth in paragraph (ii) of Schedule 11 to the Tariff.
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.
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 transmission facilities other than PTF shall provide service over
such facilities 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 service under its Local Network Service Tariff or
otherwise (i) 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 and (ii) to permit the delivery to an Eligible Customer taking
Internal Point-to-Point Service under the Tariff of the Energy and/or
capacity covered by its Completed Application for that Internal Point-
to-Point Service.
A Local Network Service Tariff shall provide:
(i) for a pro rata allocation of monthly revenue requirements not
otherwise paid for through charges to Eligible Customers for
Local Point-to-Point Service among the Transmission Provider's
Network 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 from
Network Customers and Eligible Customers taking Internal Point-
to-Point Service 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 or Internal Point-to-Point Service
pursuant to Section 16.6;
(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 directly
connected to PTF the percentage specified in the schedule below
of the applicable Local Network Service Tariff 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
to be paid 100% 80% 60% 40% 20%
(iv) 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; and
(v) that if the Transmission Provider receives transmission revenues
from an Eligible Customer taking Local Network Service from that
Transmission Provider with respect to an Excepted Transaction,
the amounts received shall reduce the amount due from such
Eligible Customer connected to the Transmission Provider's
transmission system for Local Network Service provided thereto by
the Transmission Provider rather than reducing the Transmission
Provider's total cost of service.
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 interconnection
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. INTERNAL POINT-TO-POINT SERVICE REVENUES. The revenues received
by NEPOOL each month for providing Internal Point-to-Point
Service shall be distributed among the Transmission Providers
owning or supporting PTF and the Network Customers supporting PTF
on the basis of the respective Annual Transmission Revenue
Requirements for PTF under Attachment F to the Tariff.
D. ANCILLARY SERVICE PAYMENTS. The revenues received by NEPOOL
pursuant to Schedule 1 to the Tariff (scheduling, system control
and dispatch service) will be used to reimburse NEPOOL, the
System Operator (if the System Operator does not receive revenues
for that service under a separate tariff) and Participants for
the costs which are reflected in the charges for such service.
The revenues received by NEPOOL pursuant to Schedules 2-7 to the
Tariff shall be distributed prior to the Second Effective Date in
accordance with the continuing provisions of the Prior NEPOOL
Agreement and the rules adopted thereunder, and shall be
distributed on or after the Second Effective Date in accordance
with Section 14.
E. CONGESTION PAYMENTS. Any congestion uplift charge received as a
payment for transmission service pursuant to Section 24 of the
Tariff for any hour shall be applied in accordance with Section
14.5(a) in payment for Energy service.
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 or members representing any Participant and its Related
Persons 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 or members 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 maintain proper power flows into and out of the
NEPOOL Control Area.
18.4 REVIEW OF PARTICIPANT'S PROPOSED PLANS.
Each Participant shall submit to the System Operator, 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, 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 System Operator
or 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 by 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 for services
rendered 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 (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, 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 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:
<circle>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
<circle>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 Canada or any state or
province) 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, any Curtailment, 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 event of Force
Majeure affecting any Participant shall excuse that Participant from
making any payment that it is obligated to make under this Agreement.
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.
21.10CONSTRUCTION.
(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.
21.11AMENDMENT. 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 aggregate Voting Share of any
objecting Participant and its Related Persons exceeds 18%, the
aggregate Voting Share of such Participant and its Related Persons 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.
21.12TERMINATION. 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.
21.13NOTICES 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.
21.14SEVERABILITY 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.
21.15NO 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.
21.16COUNTERPARTS. 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.
RESTATED NEPOOL OPEN ACCESS
TRANSMISSION TARIFF
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 1
TABLE OF CONTENTS
I. COMMON SERVICE PROVISIONS. . . . . . . . . . . . . . . . . 13
1 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . 13
1.1 Administrative Costs. . . . . . . . . . . . . . . . . 13
1.2 Agreement . . . . . . . . . . . . . . . . . . . . . . 13
1.3 Ancillary Services. . . . . . . . . . . . . . . . . . 13
1.4 Annual Transmission Revenue
Requirements. . . . . . . . . . . . . . . . . . . . 14
1.5 Application . . . . . . . . . . . . . . . . . . . . . 14
1.6 Backyard Generation:. . . . . . . . . . . . . . . . . 14
1.7 Business Day. . . . . . . . . . . . . . . . . . . . . 14
1.8 Commission. . . . . . . . . . . . . . . . . . . . . . 14
1.9 Completed Application . . . . . . . . . . . . . . . . 14
1.10 Compliance Effective Date . . . . . . . . . . . . . . 14
1.11 Control Area. . . . . . . . . . . . . . . . . . . . . 15
1.12 Curtailment . . . . . . . . . . . . . . . . . . . . . 16
1.13 Delivering Party. . . . . . . . . . . . . . . . . . . 16
1.14 Designated Agent. . . . . . . . . . . . . . . . . . . 16
1.15 Direct Assignment Facilities. . . . . . . . . . . . . 16
1.16 Eligible Customer . . . . . . . . . . . . . . . . . . 17
1.17 Energy Imbalance Service. . . . . . . . . . . . . . . 18
1.18 Entitlement . . . . . . . . . . . . . . . . . . . . . 18
1.19 Excepted Transaction. . . . . . . . . . . . . . . . . 19
1.20 Facilities Study. . . . . . . . . . . . . . . . . . . 19
1.21 Firm Contract . . . . . . . . . . . . . . . . . . . . 19
1.22 Firm Point-To-Point Transmission
Service . . . . . . . . . . . . . . . . . . . . . . 20
1.23 Firm Transmission Service . . . . . . . . . . . . . . 20
1.24 Generator Owner . . . . . . . . . . . . . . . . . . . 20
1.25 Good Utility Practice . . . . . . . . . . . . . . . . 20
1.26 HQ Interconnection. . . . . . . . . . . . . . . . . . 21
1.27 HQ Phase II Firm Energy Contract. . . . . . . . . . . 22
1.28 In Service. . . . . . . . . . . . . . . . . . . . . . 22
1.29 Interchange Transactions. . . . . . . . . . . . . . . 23
1.30 0MITTED . . . . . . . . . . . . . . . . . . . . . . . 23
1.31 Interest. . . . . . . . . . . . . . . . . . . . . . . 23
1.32 Internal Point-to-Point Service . . . . . . . . . . . 23
1.33 Internal Point-to-Point Service . . . . . . . . . . . 23
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 2
1.34 Interruption. . . . . . . . . . . . . . . . . . . . . 23
1.35 ISO . . . . . . . . . . . . . . . . . . . . . . . . . 24
1.36 Load Ratio Share. . . . . . . . . . . . . . . . . . . 24
1.37 Load Shedding . . . . . . . . . . . . . . . . . . . . 24
1.38 Local Network . . . . . . . . . . . . . . . . . . . . 25
1.39 Local Network Service . . . . . . . . . . . . . . . . 25
1.40 Local Point-To-Point Service. . . . . . . . . . . . . 25
1.41 Long-Term Firm Service. . . . . . . . . . . . . . . . 26
1.42 Management Committee. . . . . . . . . . . . . . . . . 26
1.43 Monthly Network Load. . . . . . . . . . . . . . . . . 26
1.44 Monthly Peak. . . . . . . . . . . . . . . . . . . . . 26
1.45 Native Load Customers . . . . . . . . . . . . . . . . 26
1.46 NEPOOL. . . . . . . . . . . . . . . . . . . . . . . . 26
1.47 NEPOOL Control Area . . . . . . . . . . . . . . . . . 27
1.48 NEPOOL Transmission System. . . . . . . . . . . . . . 27
1.49 Network Customer. . . . . . . . . . . . . . . . . . . 27
1.50 Network Integration Transmission
Service . . . . . . . . . . . . . . . . . . . . . . 27
1.51 Network Load. . . . . . . . . . . . . . . . . . . . . 27
1.52 Network Operating Agreement . . . . . . . . . . . . . 28
1.53 Network Operating Committee . . . . . . . . . . . . . 28
1.54 Network Resource. . . . . . . . . . . . . . . . . . . 29
1.55 Network Upgrades. . . . . . . . . . . . . . . . . . . 30
1.56 Non-Firm Point-To-Point Transmission
Service . . . . . . . . . . . . . . . . . . . . . . 31
1.57 Non-Participant . . . . . . . . . . . . . . . . . . . 31
1.58 Non-PTF . . . . . . . . . . . . . . . . . . . . . . . 31
1.59 Open Access Same-Time Information
System (OASIS). . . . . . . . . . . . . . . . . . . 31
1.60 Operating Reserve - 10-Minute Non-Spinning Reserve
Service . . . . . . . . . . . . . . . . . . . . . . 31
1.61 Operating Reserve - 10-Minute Spinning
Reserve Service . . . . . . . . . . . . . . . . . . 32
1.62 Operating Reserve - 30-Minute Reserve
Service . . . . . . . . . . . . . . . . . . . . . . 32
1.63 Participant . . . . . . . . . . . . . . . . . . . . . 32
1.64 Participant RNS Rate. . . . . . . . . . . . . . . . . 32
1.65 Point(s) of Delivery. . . . . . . . . . . . . . . . . 32
1.66 Point(s) of Receipt . . . . . . . . . . . . . . . . . 32
1.67 Point-To-Point Transmission Service . . . . . . . . . 33
1.68 Pool-Planned Unit . . . . . . . . . . . . . . . . . . 33
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 3
1.69 Pool PTF Rate . . . . . . . . . . . . . . . . . . . . 34
1.70 Pool RNS Rate . . . . . . . . . . . . . . . . . . . . 34
1.71 Power Purchaser . . . . . . . . . . . . . . . . . . . 34
1.72 Prior NEPOOL Agreement. . . . . . . . . . . . . . . . 34
1.73 PTF or Pool Transmission Facilities . . . . . . . . . 34
1.74 Pre-1997 PTF Rate . . . . . . . . . . . . . . . . . . 34
1.75 Reactive Supply and Voltage Control From
Generation Sources Service. . . . . . . . . . . . . 35
1.76 Receiving Party . . . . . . . . . . . . . . . . . . . 35
1.77 Regional Network Service. . . . . . . . . . . . . . . 35
1.78 Regulation and Frequency Response Service . . . . . . 35
1.79 Reserved Capacity . . . . . . . . . . . . . . . . . . 35
1.80 Scheduling, System Control and Dispatch Service . . . 36
1.81 Second Effective Date . . . . . . . . . . . . . . . . 36
1.82 Service Agreement . . . . . . . . . . . . . . . . . . 36
1.83 Service Commencement Date . . . . . . . . . . . . . . 36
1.84 Short-Term Firm Service . . . . . . . . . . . . . . . 37
1.85 System Contract . . . . . . . . . . . . . . . . . . . 37
1.86 System Impact Study . . . . . . . . . . . . . . . . . 37
1.87 System Operator . . . . . . . . . . . . . . . . . . . 38
1.88 Tariff. . . . . . . . . . . . . . . . . . . . . . . . 38
1.89 Third-Party Sale. . . . . . . . . . . . . . . . . . . 38
1.90 Through or Out Service. . . . . . . . . . . . . . . . 38
1.91 Third Effective Date. . . . . . . . . . . . . . . . . 39
1.92 Ties. . . . . . . . . . . . . . . . . . . . . . . . . 39
1.93 Transition Period . . . . . . . . . . . . . . . . . . 40
1.94 Transmission Customer . . . . . . . . . . . . . . . . 40
1.95 Transmission Provider . . . . . . . . . . . . . . . . 40
1.96 Unit Contract . . . . . . . . . . . . . . . . . . . . 41
1.97 Use . . . . . . . . . . . . . . . . . . . . . . . . . 41
1.98 Year. . . . . . . . . . . . . . . . . . . . . . . . . 42
2 Purpose of This Tariff . . . . . . . . . . . . . . . . . . . 43
3 Initial Allocation and Renewal Procedures. . . . . . . . . . 44
3.1 Initial Allocation of Available Transmission
Capability. . . . . . . . . . . . . . . . . . . . . 44
3.2 Reservation Priority For Existing Firm
Service Customers . . . . . . . . . . . . . . . . . 45
3.3 Initial Election of Optional Internal
Point-to-Point Service. . . . . . . . . . . . . . . 46
3.4 Election as to In Service . . . . . . . . . . . . . . 47
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 4
4 Ancillary Services . . . . . . . . . . . . . . . . . . . . . 48
4.1 Scheduling, System Control and Dispatch Service . . . 50
4.2 Reactive Supply and Voltage Control from
Generation Sources Service. . . . . . . . . . . . . 50
4.3 Regulation and Frequency Response Service . . . . . . 50
4.4 Energy Imbalance Service. . . . . . . . . . . . . . . 50
4.5 Operating Reserve - 10-Minute Spinning
Reserve Service . . . . . . . . . . . . . . . . . . 50
4.6 Operating Reserve - 10-Minute Non-Spinning Reserve
Service . . . . . . . . . . . . . . . . . . . . . . 50
4.7 Operating Reserve - 30-Minute Reserve
Service . . . . . . . . . . . . . . . . . . . . . . 51
5 Open Access Same-Time Information System (OASIS) . . . . . . 51
6 Local Furnishing and Other Tax-Exempt Bonds. . . . . . . . . 51
6.1 Participants That Own Facilities Financed
by Local Furnishing or Other Tax-Exempt Bonds . . . 51
6.2 Alternative Procedures for Requesting Transmission
Service - Local Furnishing Bonds. . . . . . . . . . . 52
6.3 Alternative Procedures for Requesting Transmission
Service - Other Tax-Exempt Bonds. . . . . . . . . . . 54
7 Reciprocity. . . . . . . . . . . . . . . . . . . . . . . . . 55
8 Billing and Payment; Accounting. . . . . . . . . . . . . . . 56
8.1 Participant Billing Procedure . . . . . . . . . . . . 56
8.2 Non-Participant Billing Procedure . . . . . . . . . . 56
8.3 Interest on Unpaid Balances . . . . . . . . . . . . . 57
8.4 Customer Default. . . . . . . . . . . . . . . . . . . 57
8.5 Study Costs and Revenues. . . . . . . . . . . . . . . 59
9 Regulatory Filings . . . . . . . . . . . . . . . . . . . . . 60
10 Force Majeure and Indemnification . . . . . . . . . . . . . 61
10.1 Force Majeure . . . . . . . . . . . . . . . . . . . . 61
10.2 Indemnification . . . . . . . . . . . . . . . . . . . 62
11 Creditworthiness. . . . . . . . . . . . . . . . . . . . . . 63
12 Dispute Resolution Procedures . . . . . . . . . . . . . . . 63
12.1 Internal Dispute Resolution Procedures. . . . . . . . 63
12.2 Rights Under The Federal Power Act. . . . . . . . . . 65
13 Stranded Costs. . . . . . . . . . . . . . . . . . . . . . . 65
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 5
13.1 General . . . . . . . . . . . . . . . . . . . . . . . 65
13.2 Commission Requirements . . . . . . . . . . . . . . . 65
13.3 Wholesale Contracts . . . . . . . . . . . . . . . . . 66
13.4 Right to Seek or Contest Recovery Unimpaired. . . . . 66
II. REGIONAL NETWORK SERVICE (NETWORK INTEGRATION
TRANSMISSION SERVICE). . . . . . . . . . . . . . . . . . . 66
14 Nature of Regional Network Service. . . . . . . . . . . . . 67
15 Availability of Regional Network Service. . . . . . . . . . 67
15.1 Provision of Regional Network Service . . . . . . . . 67
15.2 Eligibility to Receive Regional Network Service . . . 68
16 Payment for Regional Network Service. . . . . . . . . . . . 68
17 Procedure for Obtaining Regional Network Service. . . . . . 69
III. THROUGH OR OUT SERVICE; INTERNAL POINT-TO-POINT
SERVICE . . . . . . . . . . . . . . . . . . . . . . . . 69
18 Through or Out Service. . . . . . . . . . . . . . . . . . . 70
18.1 Provision of Through or Out Service . . . . . . . . . 70
18.2 Use of Through or Out Service . . . . . . . . . . . . 70
19 Internal Point-to-Point Service . . . . . . . . . . . . . . 71
19.1 Provision of Internal Point-to-Point Service. . . . . 71
19.2 Use of Internal Point-to-Point Service. . . . . . . . 71
19.3 Use by a Transmission Customer. . . . . . . . . . . . 72
20 Payment for Through or Out Service. . . . . . . . . . . . . 74
21 Payment for Internal Point-to-Point Service . . . . . . . . 75
22 Reservation of Capacity for Point-to-Point Transmission
Service . . . . . . . . . . . . . . . . . . . . . . . . . . 78
22A In Service . . . . . . . . . . . . . . . . . . . . . . . . 78
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 6
IV. SERVICE DURING THE TRANSITION PERIOD; CONGESTION
COSTS; EXCEPTED TRANSACTIONS . . . . . . . . . . . . . . 83
23 Transition Arrangements . . . . . . . . . . . . . . . . . . 84
24 Congestion Costs. . . . . . . . . . . . . . . . . . . . . . 84
25 Excepted Transactions . . . . . . . . . . . . . . . . . . . 87
V. POINT-TO-POINT TRANSMISSION SERVICE; IN SERVICE . . . . . . 92
Preamble. . . . . . . . . . . . . . . . . . . . . . . . . 92
26 Scope of Application of Part V. . . . . . . . . . . . . . . 93
27 Nature of Firm Point-To-Point Transmission Service. . . . . 94
27.1 Term. . . . . . . . . . . . . . . . . . . . . . . . . 94
27.2 Reservation Priority. . . . . . . . . . . . . . . . . 94
27.3 Use of Firm Point-To-Point Transmission Service by
the Participants That Own PTF . . . . . . . . . . . 96
27.4 Service Agreements. . . . . . . . . . . . . . . . . . 96
27.5 Transmission Customer Obligations for Facility
Additions or Redispatch Costs. . . . . . . . . . . 97
27.6 Curtailment of Firm Transmission Service. . . . . . . 98
27.7 Classification of Firm Point-To-Point Transmission
Service . . . . . . . . . . . . . . . . . . . . . .100
27.8 Scheduling of Firm Point-To-Point Transmission
Service. . . . . . . . . . . . . . . . . . . . . . 104
28 Nature of Non-Firm Point-To-Point Transmission Service. . .105
28.1 Term. . . . . . . . . . . . . . . . . . . . . . . . .105
28.2 Reservation Priority. . . . . . . . . . . . . . . . .106
28.3 Use of Non-Firm Point-To-Point Transmission
Service by the Transmission Provider. . . . . . . .108
28.4 Service Agreements. . . . . . . . . . . . . . . . . .108
28.5 Classification of Non-Firm Point-To-Point
Transmission Service. . . . . . . . . . . . . . . .109
28.6 Scheduling of Non-Firm Point-To-Point Transmission
Service:. . . . . . . . . . . . . . . . . . . . . .111
28.7 Curtailment or Interruption of Service. . . . . . . .113
29 Service Availability. . . . . . . . . . . . . . . . . . . .116
29.1 General Conditions. . . . . . . . . . . . . . . . . .116
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 7
29.2 Determination of Available Transmission Capability. .116
29.3 Initiating Service in the Absence of an Executed
Service Agreement . . . . . . . . . . . . . . . . .116
29.4 Obligation to Provide Transmission Service that
Requires Expansion or Modification of the
Transmission System . . . . . . . . . . . . . . . .117
29.5 Deferral of Service . . . . . . . . . . . . . . . . .118
29.6 Real Power Losses . . . . . . . . . . . . . . . . . .119
29.7 Load Shedding . . . . . . . . . . . . . . . . . . . .120
30 Transmission Customer Responsibilities. . . . . . . . . . .120
30.1 Conditions Required of Transmission Customers . . . .120
30.2 Transmission Customer Responsibility for Third-
Party Arrangements. . . . . . . . . . . . . . . . .121
31 Procedures for Arranging Firm Point-To-Point Transmission
Service . . . . . . . . . . . . . . . . . . . . . . . . . .122
31.1 Application . . . . . . . . . . . . . . . . . . . . .122
31.2 Completed Application . . . . . . . . . . . . . . . .123
31.3 Deposit . . . . . . . . . . . . . . . . . . . . . . .124
31.4 Notice of Deficient Application . . . . . . . . . . .126
31.5 Response to a Completed Application . . . . . . . . .127
31.6 Execution of Service Agreement. . . . . . . . . . . .128
31.7 Extensions for Commencement of Service. . . . . . . .129
32 Procedures for Arranging Non-Firm Point-To-Point
Transmission Service. . . . . . . . . . . . . . . . . . . .130
32.1 Application . . . . . . . . . . . . . . . . . . . . .130
32.2 Completed Application:. . . . . . . . . . . . . . . .130
32.3 Reservation of Non-Firm Point-To-Point Transmission
Service. . . . . . . . . . . . . . . . . . . . . . .132
32.4 Determination of Available Transmission Capability. .132
33 Additional Study Procedures For Firm Point-To-Point
Transmission Service Requests . . . . . . . . . . . . . . .133
33.1 Notice of Need for System Impact Study. . . . . . . .133
33.2 System Impact Study Agreement and Cost
Reimbursement . . . . . . . . . . . . . . . . . . .135
33.3 System Impact Study Procedures. . . . . . . . . . . .136
33.4 Facilities Study Procedures . . . . . . . . . . . . .138
33.5 Facilities Study Modifications. . . . . . . . . . . .140
33.6 Due Diligence in Completing New
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 8
Facilities. . . . . . . . . . . . . . . . . . . . .141
33.7 Partial Interim Service . . . . . . . . . . . . . . .141
33.8 Expedited Procedures for New Facilities . . . . . . .142
34 Procedures if New Transmission Facilities for Firm
Point-To-Point Transmission Service Cannot be Completed . .143
34.1 Delays in Construction of New Facilities. . . . . . .143
34.2 Alternatives to the Original Facility Additions . . .144
34.3 Refund Obligation for Unfinished Facility
Additions . . . . . . . . . . . . . . . . . . . . .145
35 Provisions Relating to Transmission Construction and
Services on the Systems of Other Utilities. . . . . . . . .146
35.1 Responsibility for Third-Party System Additions . . .146
35.2 Coordination of Third-Party System Additions . . . .147
36 Changes in Service Specifications . . . . . . . . . . . . .148
36.1 Modifications on a Non-Firm Basis . . . . . . . . . .148
36.2 Modification on a Firm Basis. . . . . . . . . . . . .150
37 Sale, Assignment or Transfer of Transmission Service. . . .151
37.1 Procedures for Sale, Assignment or
Transfer of Service . . . . . . . . . . . . . . . .151
37.2 Limitations on Assignment or Transfer of Service. . .152
37.3 Information on Assignment or Transfer of Service. . .153
38 Metering and Power Factor Correction at Receipt and
Delivery Points(s). . . . . . . . . . . . . . . . . . . . .153
38.1 Transmission Customer Obligations . . . . . . . . . .153
38.2 NEPOOL Access to Metering Data. . . . . . . . . . . .154
38.3 Power Factor. . . . . . . . . . . . . . . . . . . . .154
39 Compensation for New Facilities and Redispatch Costs. . . .154
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 9
VI. REGIONAL NETWORK SERVICE (NETWORK INTEGRATION
TRANSMISSION SERVICE). . . . . . . . . . . . . . . . . . .155
40 Nature of Regional Network Service. . . . . . . . . . . . .155
40.1 Scope of Service. . . . . . . . . . . . . . . . . . .155
40.2 Transmission Provider Responsibilities. . . . . . . .156
40.3 Network Integration Transmission Service. . . . . . .157
40.4 Secondary Service . . . . . . . . . . . . . . . . . .157
40.5 Real Power Losses . . . . . . . . . . . . . . . . . .158
40.6 Restrictions on Use of Service. . . . . . . . . . . .159
41 Initiating Service. . . . . . . . . . . . . . . . . . . . .159
41.1 Condition Precedent for Receiving Service . . . . . .159
41.2 Application Procedures. . . . . . . . . . . . . . . .160
41.3 Technical Arrangements to be Completed Prior to
Commencement of Service . . . . . . . . . . . . . .164
41.4 Network Customer Facilities . . . . . . . . . . . . .165
41.5 Filing of Service Agreement . . . . . . . . . . . . .165
42 Network Resources . . . . . . . . . . . . . . . . . . . . .165
42.1 Designation of Network Resources. . . . . . . . . . .165
42.2 Designation of New Network Resources. . . . . . . . .166
42.3 Termination of Network Resources. . . . . . . . . . .167
42.4 Network Customer Redispatch Obligation. . . . . . . .167
42.5 Transmission Arrangements for Network Resources Not
Physically Interconnected With The NEPOOL
Transmission System . . . . . . . . . . . . . . . .167
42.6 Limitation on Designation of Resources. . . . . . . .168
42.7 Use of Interface Capacity by the Network Customer . .169
43 Designation of Network Load . . . . . . . . . . . . . . . .169
43.1 Network Load. . . . . . . . . . . . . . . . . . . . .169
43.2 New Network Loads Connected With the NEPOOL
Transmission System . . . . . . . . . . . . . . . .170
43.3 Network Load Not Physically Interconnected with
the NEPOOL Transmission System. . . . . . . . . . .170
43.4 New Interconnection Points. . . . . . . . . . . . . .172
43.5 Changes in Service Requests . . . . . . . . . . . . .172
43.6 Annual Load and Resource Information
Updates . . . . . . . . . . . . . . . . . . . . . .173
44 Additional Study Procedures For Network Integration
Transmission Service Requests . . . . . . . . . . . . . . .173
44.1 Notice of Need for System Impact Study. . . . . . . .173
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 10
44.2 System Impact Study Agreement and Cost
Reimbursement . . . . . . . . . . . . . . . . . . .175
44.3 System Impact Study Procedures. . . . . . . . . . . .176
44.4 Facilities Study Procedures . . . . . . . . . . . . .178
45 Load Shedding and Curtailments. . . . . . . . . . . . . . .181
45.1 Procedures. . . . . . . . . . . . . . . . . . . . . .181
45.2 Transmission Constraints. . . . . . . . . . . . . . .181
45.3 Cost Responsibility for Relieving Transmission
Constraints . . . . . . . . . . . . . . . . . . . .182
45.4 Curtailments of Scheduled Deliveries. . . . . . . . .183
45.5 Allocation of Curtailments. . . . . . . . . . . . . .183
45.6 Load Shedding . . . . . . . . . . . . . . . . . . . .184
45.7 System Reliability. . . . . . . . . . . . . . . . . .184
46 Rates and Charges . . . . . . . . . . . . . . . . . . . . .186
46.1 Determination of Network Customer's Monthly
Network Load. . . . . . . . . . . . . . . . . . . .186
47 Operating Arrangements. . . . . . . . . . . . . . . . . . .186
47.1 Operation under The Network Operating Agreement . . .186
47.2 Network Operating Agreement . . . . . . . . . . . . .187
47.3 Network Operating Committee . . . . . . . . . . . . .189
48 Scope of Application of Part VI to Participants . . . . . .189
VII. INTERCONNECTIONS . . . . . . . . . . . . . . . . . . . .192
49 Interconnection Requirements . . . . . . . . . . . . . . .192
50 Rights of Generator Owners . . . . . . . . . . . . . . . .197
51 New Interconnection to Other Control Area. . . . . . . . .199
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 11
SCHEDULE 1 - Scheduling, System Control and Dispatch Service.201
SCHEDULE 2 - Reactive Supply and Voltage Control from
Generation Sources Service . . . . . . . . . . .204
SCHEDULE 3 - Regulation and Frequency Response Service
(Automatic Generator Control). . . . . . . . . .208
SCHEDULE 4 - Energy Imbalance Service . . . . . . . . . . . .211
SCHEDULE 5 - Operating Reserve - 10-Minute Spinning
Reserve Service. . . . . . . . . . . . . . . . .213
SCHEDULE 6 - Operating Reserve - 10-Minute Non-Spinning
Reserve Service. . . . . . . . . . . . . . . . .216
SCHEDULE 7 - Operating Reserve - 30-Minute Reserve Service. .219
SCHEDULE 8 - Through or Out Service -The Pool PTF Rate. . . .222
SCHEDULE 9 - Regional Network Service . . . . . . . . . . . .225
SCHEDULE 10 - Internal Point-to-Point Service. . . . . . . . .232
SCHEDULE 11 - Additions to or Upgrades of PTF. . . . . . . . .234
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 12
ATTACHMENT A - Form of Service Agreement for Through or Out
Service or Internal Point-To-Point Service. . .245
ATTACHMENT B - Form Of Service Agreement For Regional
Network Service . . . . . . . . . . . . . . . .252
ATTACHMENT C - Methodology To Assess Available Transmission
Capability. . . . . . . . . . . . . . . . . . .256
ATTACHMENT D - Methodology for Completing a System Impact
Study . . . . . . . . . . . . . . . . . . . . .259
ATTACHMENT E - Local Networks. . . . . . . . . . . . . . . . .262
ATTACHMENT F - Annual Transmission Revenue Requirements. . . .264
Attachment G - List of Excepted Transaction Agreements . . . .278
Attachment G-1 - List of Excepted Agreements . . . . . . . . .283
Attachment G-2 - List of Certain Arrangements over External
Ties. . . . . . . . . . . . . . . . . . . . .285
ATTACHMENT H - Form of Network Operating Agreement . . . . . .287
ATTACHMENT I - Form of System Impact Study Agreement . . . . .310
ATTACHMENT J - Form of Facilities Study Agreement. . . . . . .326
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 13
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 this
Section 1. Terms used in this Tariff that are not defined in this Tariff
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.
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 14
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 Backyard Generation: Generation which interconnects directly with
distribution facilities dedicated solely to load not designated as
Network Load. Any distribution facilities which are shared with
Network Load will not qualify.
1.7 Business Day: Any day other than a Saturday or Sunday or a
national or Massachusetts holiday.
1.8 Commission: The Federal Energy Regulatory Commission.
1.9 Completed Application: An Application that satisfies all of the
information and other requirements of this Tariff, including any
required deposit.
1.10 Compliance Effective Date: The date upon which the changes in
this Tariff which have been reflected
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 15
herein to comply with the Commission's Order of April 20, 1998 in the
NEPOOL restructuring proceedings become effective.
1.11 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 of the applicable regional reliability council or
the North American Electric Reliability Council; and
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 16
(4) provide sufficient generating capacity to maintain operating
reserves in accordance with Good Utility Practice.
1.12 Curtailment: A reduction in firm or non-firm transmission service
in response to a transmission capacity shortage as a result of
system reliability conditions.
1.13 Delivering Party: The entity supplying capacity and/or energy to
be transmitted at Point(s) of Receipt under this Tariff.
1.14 Designated Agent: Any entity that performs actions or functions
required under the Tariff on behalf of NEPOOL, an Eligible Customer,
or a Transmission Customer.
1.15 Direct Assignment Facilities: Facilities or portions of
facilities that are Non-PTF and are constructed for the sole
use/benefit of a particular Transmission Customer requesting service
under this Tariff or a Generator Owner requesting an
interconnection. Direct Assignment Facilities shall be specified in
a separate agreement with the Transmission Provider whose
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 17
transmission system is to be modified to include and/or interconnect
with said Facilities, shall be subject to applicable Commission
requirements and shall be paid for by the Transmission Customer or a
Generator Owner or Interconnection Requester in accordance with the
separate agreement and not under this Tariff.
1.16 Eligible Customer: (i) Any Participant that is engaged, or
proposes to engage, in the wholesale or retail electric power
business is an Eligible Customer under the Tariff. (ii) Any
electric utility (including any power marketer), Federal power
marketing agency, or any other entity generating electric energy for
sale or for resale is an Eligible Customer under the Tariff.
Electric energy sold or produced by such entity may be electric
energy produced in the United States, Canada or Mexico. However,
with respect to transmission service that the Commission is
prohibited from ordering by Section 212(h) of the Federal Power Act,
such entity is eligible only if the service is provided pursuant to a
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 18
state requirement that the Transmission Provider with which that
entity is directly interconnected offer the unbundled transmission
service, or pursuant to a voluntary offer of such service by the
Transmission Provider with which that entity is directly
interconnected. (iii) Any end user taking or eligible to take
unbundled transmission service pursuant to a state requirement that
the Transmission Provider with which that end user is directly
interconnected offer the transmission service, or pursuant to a
voluntary offer of such service by the Transmission Provider with
which that end user is directly interconnected, is an Eligible
Customer under the Tariff.
1.17 Energy Imbalance Service: This service is the form of Ancillary
Service described in Schedule 4.
1.18 Entitlement: An Installed Capability Entitlement, Operable
Capability Entitlement, Energy Entitlement, Operating Reserve
Entitlement, or AGC Entitlement, in each case as defined in the
Agreement. When used in the plural form, it may be any or all such
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 19
Entitlements or combinations thereof, as the context requires.
1.19 Excepted Transaction: A transaction specified in Section 25 for
the applicable period specified in that Section.
1.20 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 or interconnection.
1.21 Firm Contract: Any contract, other than a Unit Contract, for the
purchase of Installed Capability, Operable Capability, Energy,
Operating Reserves, and/or AGC (as defined in the Agreement),
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 20
inability to make deliveries thereunder as the result of events
beyond the supplier's reasonable control.
1.22 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 V of this Tariff.
1.23 Firm Transmission Service: Service for Native Load Customers,
firm Regional Network Service (Network Integration Transmission
Service), service for Excepted Transactions, Firm Internal Point-To-
Point Transmission Service, or Firm Through or Out Service.
1.24 Generator Owner: The owner, in whole or part, of a generating
unit whether located within or outside the NEPOOL Control Area.
1.25 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 21
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.
1.26 HQ Interconnection: 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 22
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.
1.27 HQ Phase II Firm Energy Contract: 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.
1.28 In Service: The service provided by NEPOOL with respect to an
import transaction which requires the use of PTF and goes into the
NEPOOL Transmission System from the Maine Electric Power Company
line or New York, or into the NEPOOL Control Area on any new
interconnection constructed after the Compliance Effective Date in
accordance with Section 22A of this Tariff.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 23
1.29 Interchange Transactions: 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 the Agreement on and after the Second Effective Date.
1.30 0MITTED
1.31 Interest: Interest calculated in the manner specified in Section
8.3.
1.32 Internal Point-to-Point Service: Point-to-Point Transmission
Service with respect to a transaction where the Point of Receipt is
at the boundary of or within the NEPOOL Control area and the Point
of Delivery is within the NEPOOL Control Area.
1.33 Internal Point-to-Point Service Rate: The rate applicable to
Internal Point-to-Point Service, which shall be equal for each
delivery to 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.
1.34 Interruption: A reduction in non-firm transmission service due to
economic reasons pursuant to Section
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 24
28.7, other than a reduction which results from a failure to dispatch
a generating resource (including a contract used in a transaction
requiring In Service or Through or Out Service) which is out of merit
order.
1.35 ISO: The Independent System Operator which is responsible 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.
1.36 Load Ratio Share: Ratio of a Transmission Customer's most
recently reported Monthly Network Load in the case of Network
Customers and including where applicable Point-to-Point Customers'
Reserved Capacity, to the total load of Network Customers and Point-
to-Point customers, computed in accordance with Part VI of the
Tariff.
1.37 Load Shedding: The systematic reduction of system demand by
temporarily decreasing load in response to transmission system or
area capacity shortages, system instability, or for voltage control
considerations under Part VI of the Tariff.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 25
1.38 Local Network: The transmission facilities constituting a local
network identified on Attachment E, and any 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.
1.39 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.
1.40 Local Point-To-Point Service: Local Point-To-Point service is
Point-to-Point Transmission Service provided, under a separate
tariff or contract, by a Participant that is a Transmission Provider
over Non-PTF or distribution facilities to permit deliveries to
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 26
or from an interconnection point on the NEPOOL Transmission System.
1.41 Long-Term Firm Service: Firm Transmission Service with a term of
one year or more.
1.42 Management Committee: The committee established pursuant to
Section 6 of the Agreement.
1.43 Monthly Network Load: Has the meaning specified in Section 46.1.
1.44 Monthly Peak: Has the meaning specified in Section 46.1.
1.45 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.
1.46 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 27
1.47 NEPOOL Control Area: The Control Area (as defined in Section
1.11) for NEPOOL.
1.48 NEPOOL Transmission System: The PTF transmission facilities.
1.49 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.
1.50 Network Integration Transmission Service: Regional Network
Service, which may be used with respect to Network Resources or
Network Load not physically interconnected with the NEPOOL
Transmission System.
1.51 Network Load: The load that a Network Customer designates for
Network Integration Transmission Service under Part II and Part VI
of the Tariff. The Network Customer's Network Load shall include
all load designated by the Network Customer (including losses) and
shall not be credited or reduced for any behind-the-meter generation.
A Network Customer may elect to designate less than its total load as
Network Load but may not designate only part of the load at a
discrete
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 28
Point of Delivery. Where an Eligible Customer has elected not to
designate a particular load at discrete Points of Delivery as Network
Load, the Eligible Customer is responsible for making separate
arrangements under Part III and Part V of the Tariff for any
Point-to-Point Transmission Service that may be necessary for such
non-designated load.
1.52 Network Operating Agreement: An executed agreement in the form of
Attachment H, or any other form that is mutually agreed to, that
contains the terms and conditions under which the Network Customer
shall operate its facilities and the technical and operational
matters associated with the implementation of Network Integration
Transmission Service under Part II and Part VI of this Tariff. The
Agreement and the rules adopted thereunder shall constitute the
Network Operating Agreement for Participants.
1.53 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 29
for implementation of Network Integration Transmission Service under
Part II and Part VI of this Tariff. The Network Operating Committee
for Network Customers that are Participants shall be the NEPOOL
Regional Transmission Operations Committee and the NEPOOL Regional
Transmission Planning Committee, meeting jointly in a meeting
designated as the annual Network Operating Committee
meeting. Notice of each meeting of the Committee pursuant to
Section 47.3 shall be given to each Non-Participant receiving
Regional Network Service under this Tariff and the Non-Participant
shall have the right to be represented at each of such meetings.
1.54 Network Resource: (1) With respect to Participants, (a) any
generating resource located in the NEPOOL Control Area which has
been placed in service prior to the Compliance Effective Date
(including a unit that has lost its capacity value when its capacity
value is restored and a deactivated unit which may be reactivated
without satisfying the requirements of Section 49 of this Tariff in
accordance with the
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 30
provisions thereof) until retired; (b) any generating resource
located in the NEPOOL Control Area which is placed in service after
the Compliance Effective Date until retired, provided that (i) the
Generator Owner has complied with the requirements of Section 49 of
the Tariff, and (ii) the output of the unit shall be limited in
accordance with Section 49, if required; and (c) any generating
resource or combination of resources (including bilateral purchases)
located outside the NEPOOL Control Area for so long as any
Participant has an Entitlement in the resource or resources which is
being delivered to it in the NEPOOL Control Area to serve Network
Load located in the NEPOOL Control Area or other designated Network
Loads contemplated by Section 43.3 of this Tariff taking Regional
Network Service. (2) With respect to Non-Participant Network
Customers, any generating resource owned, purchased or leased by the
Network Customer which it designates to serve Network Load.
1.55 Network Upgrades: Modifications or additions to transmission-
related facilities that are integrated
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 31
with and support the overall NEPOOL Transmission System for the
general benefit of all users of such Transmission System.
1.56 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.
1.57 Non-Participant: Any entity that is not a Participant.
1.58 Non-PTF: The transmission facilities owned by the Participants
that do not constitute PTF.
1.59 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 and all additional requirements implemented by
subsequent Commission orders dealing with OASIS.
1.60 Operating Reserve - 10-Minute Non-Spinning Reserve Service: This
service is the form of Ancillary Service described in Schedule 6.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 32
1.61 Operating Reserve - 10-Minute Spinning Reserve Service: This
service is the form of Ancillary Service described in Schedule 5.
1.62 Operating Reserve - 30-Minute Reserve Service: This service is
the form of Ancillary Service described in Schedule 7.
1.63 Participant: A participant in NEPOOL under the Agreement.
1.64 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.
1.65 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 Point of Delivery may be
designated as the NEPOOL power exchange. The Point(s) of Delivery
shall be specified in the Service Agreement, if applicable, for
Long-Term Firm Point-To-Point Transmission Service.
1.66 Point(s) of Receipt: Point(s) of interconnection where capacity
and/or energy to be transmitted by the
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 33
Participants will be made available to NEPOOL by the Delivering Party
under this Tariff. The Point of Receipt may be designated as the
NEPOOL power exchange in circumstances where the System Operator does
not require greater specificity. The Point(s) of Receipt shall be
specified in the Service Agreement, if applicable, for Long-Term Firm
Point-To-Point Transmission Service.
1.67 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. NEPOOL
Point-to-Point Transmission Service includes both Internal Point-to-
Point Service and Through or Out Service.
1.68 Pool-Planned Unit: 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).
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 34
1.69 Pool PTF Rate: The transmission rate determined in accordance
with Schedule 8 to this Tariff.
1.70 Pool RNS Rate: The transmission rate determined in accordance
with paragraph (2) of Schedule 9 to this Tariff.
1.71 Power Purchaser: The entity that is purchasing the capacity
and/or energy to be transmitted under the Tariff.
1.72 Prior NEPOOL Agreement: The NEPOOL Agreement as in effect on
December 1, 1996.
1.73 PTF or Pool Transmission Facilities: (i) The 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.
1.74 Pre-1997 PTF Rate: The transmission rate of a Participant
determined in accordance with paragraph (5) of Schedule 9 to this
Tariff.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 35
1.75 Reactive Supply and Voltage Control From Generation Sources
Service: This service is the form of Ancillary Service described in
Schedule 2.
1.76 Receiving Party: The entity receiving the capacity and/or energy
transmitted to Point(s) of Delivery under this Tariff.
1.77 Regional Network Service: The transmission service described in
Section 14 and Part VI of this Tariff.
1.78 Regulation and Frequency Response Service: This service is the
form of Ancillary Service described in Schedule 3.
1.79 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 36
1.80 Scheduling, System Control and Dispatch Service: This service is
the form of Ancillary Service described in Schedule 1.
1.81 Second Effective Date: The date on which the provisions of Part
Three of the Agreement (other than the Installed Capability
Responsibility provisions of Section 12) shall become effective and
shall be such date as the Commission may fix on its own or pursuant
to a request of the Management Committee.
1.82 Service Agreement: The initial agreement and any amendments or
supplements thereto entered into by the Transmission Customer and
the System Operator for service under this Tariff.
1.83 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 48 of this Tariff, the date service actually commences.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 37
1.84 Short-Term Firm Service: Firm Transmission Service with a term of
less than one year.
1.85 System Contract: Any contract for the purchase of Installed
Capability, Operable Capability, Energy, Operating Reserves and/or
AGC (as defined in the Agreement), 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 Reserves and/or
AGC.
1.86 System Impact Study: An assessment pursuant to Part V, VI or VII
of this Tariff of (i) the adequacy of the NEPOOL Transmission System
to accommodate a request for the interconnection of a new or
materially changed generating unit or a new or materially changed
interconnection to another Control Area or new Regional Network
Service, Internal Point-to-Point Service or Through or Out Service,
and (ii) whether any additional costs may be required to be incurred
in order to provide the interconnection or transmission service.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 38
1.87 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 is the ISO.
1.88 Tariff: This NEPOOL Open Access Transmission Tariff and
accompanying schedules and attachments, as modified and amended from
time to time.
1.89 Third-Party Sale: Any sale for resale in interstate commerce to a
Power Purchaser that is not designated as part of Network Load under
the Regional Network Service.
1.90 Through or Out Service: Point-to-Point Transmission Service
provided by NEPOOL with respect to a transaction which requires the
use of PTF and which goes through the NEPOOL Control Area, as, for
example, from the Maine Electric Power Company line or 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 39
Control Area from a point in the NEPOOL Control Area, as, for
example, from Boston to New York.
1.91 Third Effective Date: 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.
1.92 Ties: (1) The PTF lines and facilities which connect the NEPOOL
Transmission System to the transmission line owned by Maine Electric
Power Company, which is in turn connected to the transmission system
in New Brunswick, (2) the PTF lines and facilities which connect the
NEPOOL Transmission System to the transmission system in New York
and (3) any new PTF lines and facilities which connect the NEPOOL
Transmission System to the transmission system in another Control
Area.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 40
1.93 Transition Period: The five-year period commencing on March 1,
1997.
1.94 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 48 of this Tariff, 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 this Tariff. This term is used in Part I
to include customers receiving transmission service under this
Tariff.
1.95 Transmission Provider: The Participants, collectively, which own
PTF and are in the business of providing transmission service or
provide service under a local open access transmission tariff, or in
the case of a municipal Participant, would be required to do so if
requested pursuant to the reciprocity
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Original Sheet No. 41
requirements specified in the Tariff, or an individual such
Participant, whichever is appropriate.
1.96 Unit Contract: A 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 Reserves and/or AGC if, or to the
extent that, a specific electric generating unit or units is or can
be operated.
1.97 Use: For a Transmission Customer which has exercised its option to
take Internal Point-to-Point Service to serve all or a portion of
its load at any Point of Delivery, the greatest for the hour of (i)
the maximum amount that it will receive in the hour, as determined
from meters and adjusted for losses, at that Point of Delivery from
the resources covered by its Completed Applications and from
Interchange Transactions, or (ii) the portion of its Installed
Capability Responsibility (as determined in accordance with the
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 42
Agreement) for the month which must be satisfied at that Point of
Delivery with such resources if the Transmission Customer is a
Participant, or (iii) the portion of its Operable Capability
Responsibility (as determined in accordance with the Agreement) for
the hour which must be satisfied at that Point of Delivery with such
resources if the Transmission Customer is a Participant, or (iv) the
amount of capacity from such resources that the Transmission
Customer must receive, adjusted to include losses, at such Point of
Delivery for the hour to meet its reliability obligations if the
Transmission Customer is a Non-Participant. Use shall be expressed
in terms of whole kilowatts on a sixty-minute interval (commencing
on the clock hour) basis.
1.98 Year: A period of 365 or 366 days, whichever is appropriate,
commencing on, or on the anniversary of, March 1, 1997. Year One is
the Year commencing on March 1, 1997, and Years Two and higher
follow it in sequence.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 43
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 Participant's filed tariff. Any new regional use of the NEPOOL
Transmission System must be obtained from NEPOOL pursuant to this Tariff
and not from individual Participants. Ancillary Services will be supplied
in accordance with Section 4 of this Tariff.
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 System had to be
obtained and paid for under the individual tariffs of the Participants to a
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 44
regime in which the service will be obtained from the Participants through
NEPOOL at a rate which will not vary with distance. 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 service which is 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 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 45
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 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 46
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 first day of the calendar month in which the existing
contract term is to terminate.
3.3 Initial Election of Optional Internal Point-to-Point Service:
Participants and Non-Participants receiving Regional Network Service
under the Tariff on the Compliance Effective Date shall have sixty
days to make an initial election to receive Internal Point-to-Point
Service in lieu of, in whole or part, Regional Network Service. The
election shall take effect as to such service at the end of such
sixty-day period and shall be made by delivering an application to the
System Operator,
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 47
together with a deposit, if required, pursuant to Part V of this
Tariff.
Participants and Non-Participants receiving Regional Network Service
which do not make such an initial election within such sixty-day
period shall continue to receive Regional Network Service, subject to
their right to elect at any time later to receive Internal Point-to-
Point Service.
3.4 Election as to In Service: If a Transmission Customer has in effect
on the Compliance Effective Date a reservation for capacity for In
Service on the Ties effective under the provisions of the Tariff
(other than a reservation for an Excepted Transaction) it shall be
obligated, on or prior to the Compliance Effective Date, either (i) to
terminate in whole or part the reservation by notice to the System
Operator, or (ii) effect compliance, for the period commencing on the
Compliance Effective Date, with the applicable requirements of Section
22A of this Tariff.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 48
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 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 49
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
200% 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. Three principal requirements apply to discounts for Ancillary
Services provided by NEPOOL in conjunction with its provision of
transmission service as follows: (1) any offer of a discount made by NEPOOL
must be announced to all Eligible Customers solely by posting on the OASIS,
(2) any customer-initiated requests for discounts (including requests for
use by one's wholesale merchant or an affiliate's use) must occur solely by
posting on the OASIS, and (3) once a discount is negotiated, details must
be immediately posted on the OASIS. A discount agreed upon for
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 50
an Ancillary Service must be offered for the same period to all Eligible
Customers on the NEPOOL Transmission System. 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.
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 51
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.
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 52
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.
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 53
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 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. The
Commission, upon receipt of the Transmission Provider's waiver of
its rights to 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, shall issue an order
under Section 211 of the Federal Power Act. Upon issuance of the
order under Section 211 of the Federal Power Act, the
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 54
Transmission Provider shall be required to 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
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 55
7 Reciprocity
A Transmission Customer receiving transmission service under this Tariff,
whether a Participant or a Non-Participant, agrees to provide comparable
transmission service that it is capable of providing 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 and that are owned, controlled or operated by, or on behalf of the
Transmission Customer and over facilities used for the transmission of
electric energy owned, controlled or operated by the Transmission
Customer's corporate affiliates. 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 applies not only to the Transmission Customer
that obtains transmission service under the Tariff, but also to all parties
to a transaction that involves the use of transmission service under the
Tariff,
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 56
including the power seller, buyer and any intermediary, such as a
power marketer. This reciprocity requirement also applies to any Eligible
Customer that owns, controls or operates transmission facilities that uses
an intermediary, such as a power marketer, to request transmission service
under the 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 for the charges for all services furnished under this Tariff
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 57
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.
8.4 Customer Default: In the event a Non-Participant Transmission
Customer fails, for any reason other than a billing dispute as
described below, to make payment to
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 58
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, 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
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 Operator may
provide notice to the Transmission Customer of NEPOOL's intention to
suspend service in sixty days, in accordance with applicable
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Original Sheet No. 59
Commission rules and regulations, and may proceed with such suspension.
In the event a Transmission Customer that is a Participant fails to
perform its obligations under the Tariff, Section 21.2 of the
Agreement shall be applicable to that failure. That section of the
Agreement addresses defaults under both the Tariff and the Agreement
and also addresses termination of an entity's status as a Participant.
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 Part V of 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 Facilities Studies which the
Transmission Provider conducts to determine if it must construct new
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 60
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 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 61
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, any Curtailment, 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. A
Force Majeure event does not include an act of negligence or
intentional wrongdoing. 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 affecting any entity shall excuse that entity
from making any payment that it is obligated to make hereunder or
under a Service Agreement. However, an entity whose performance under
this Tariff is hindered by an
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 62
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 by the System Operator, NEPOOL or
a Participant, as the case may be.
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Original Sheet No. 63
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 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.
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures: Any dispute between an
Eligible Customer or Transmission Customer which is a Participant and
NEPOOL involving transmission service under the Tariff may be
submitted to mediation and/or arbitration and
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 64
resolved in accordance with the alternate dispute resolution procedures
set forth in Section 21.1 of the Agreement. Any dispute between a
Non-Participant Eligible Customer or Transmission Customer and NEPOOL
involving 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 Eligible Customer or 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 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, with any Non-Participant being
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Original Sheet No. 65
treated as if it were a Participant for purposes of such procedures.
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 law or
by the regulatory commission with jurisdiction.
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 or other relevant Commission orders.
However, the Participant must separately file any specific proposed
stranded cost charge under Section 205 of the Federal Power Act.
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Original Sheet No. 66
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.
II. REGIONAL NETWORK SERVICE (NETWORK INTEGRATION TRANSMISSION SERVICE)
Regional Network Service or Network Integration Transmission Service will
be provided by the Participants through NEPOOL during and after the
Transition Period to Transmission Customers pursuant to the applicable
terms and conditions of this Tariff. Local Network Service 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
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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, but the Agreement prescribes certain requirements with
respect thereto.
14 Nature of Regional Network Service
Regional Network Service or Network Integration Transmission Service is the
service provided under Parts II and VI of this Tariff over the NEPOOL
Transmission System which is provided to Network Customers to serve their
loads. It includes firm transmission service for the delivery to a Network
Customer of its energy and capacity in Network Resources and secondary
service for the delivery to or by Network Customers of energy and capacity
in Interchange Transactions. Regional Network Service also includes In
Service, as provided in Section 22A.
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 Eligible Customer.
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Original Sheet No. 68
15.2 Eligibility to Receive Regional Network Service: Regional Network
Service shall be taken and paid for by (i) each Eligible Customer
which has a load within the NEPOOL Control Area and has not elected to
take Internal Point-to-Point Service at all of its Point(s) of
Delivery, 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 or has elected to take
Internal Point-to-Point Service at all of its Point(s) of Delivery.
Participants and Non-Participants which take Regional Network Service
must also take Local Network Service except as otherwise provided in
Section 25.
16 Payment for Regional Network Service
Each Participant or Non-Participant which has a load in the NEPOOL Control
Area and takes Regional Network Service for a month shall pay to NEPOOL for
such month an amount equal to its Monthly Network Load for the month times
the applicable Participant RNS Rate, and shall pay in addition any amount
which it is required to pay for the service pursuant to
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Section 43.3 of this Tariff. It shall also be obligated to pay any
applicable congestion or other uplift charge required to be paid pursuant to
Section 24 of this Tariff. The applicable Participant RNS 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 Participant or Non-Participant is located. In the event the Participant
or Non-Participant serves Network Load located on more than one Local
Network, the amount to be paid by it shall be separately computed for the
Network Load located on each Local Network.
17 Procedure for Obtaining Regional Network Service
A Participant or Non-Participant which takes Regional Network Service shall
be subject to the applicable provisions of Part II and Part VI of this
Tariff, except to the extent otherwise specifically provided in Section 48
of this Tariff.
III. THROUGH OR OUT SERVICE; INTERNAL POINT-TO-POINT SERVICE
Point-to-Point Transmission Service as Through or Out Service or Internal
Point-to-Point Service will be provided during and after the Transition
Period pursuant to the applicable terms and conditions of this Tariff.
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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 boundary, as, for example, from the Maine
Electric Power Company line or 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
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boundary with New York (which in the case of such transaction will also
require In Service as part of the Through or Out Service in accordance
with Section 22A of this Tariff), 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 Internal Point-to-Point Service
19.1 Provision of Internal Point-to-Point Service: Internal Point-to-
Point 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.
19.2 Use of Internal Point-to-Point Service: A Participant or Non-
Participant which is an Eligible Customer may take Internal Point-to-
Point Service as Firm or Non-Firm Point-to-Point Transmission Service
with respect to any transaction if the Point(s) of Receipt are at the
NEPOOL Control Area boundary
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(which in the case of such transaction will also require In Service as
part of the Internal Point-to-Point Service in accordance with Section
22A of this Tariff) or within the NEPOOL Control Area, and the Point(s)
of Delivery are within the NEPOOL Control Area, including Interchange
Transactions meeting these requirements. Non-Firm Internal
Point-to-Point Service shall be available to serve a load that is
served by an entity only if the entity (i) demonstrates to the
satisfaction of the System Operator a physical ability to interrupt its
receipt of energy and/or capacity and (ii) gives the System Operator
physical control over such an interruption.
19.3 Use by a Transmission Customer: If a Transmission Customer elects to
take Internal Point-to-Point Service with respect to any Points of
Delivery, it may reserve transmission capacity for the service to
cover both the delivery to it of energy and capacity covered by the
Entitlements or System Contracts designated by it in Completed
Applications and the delivery to or from it in Interchange Transactions
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Original Sheet No. 73
of energy and/or capacity. A Transmission Customer which takes
Internal Point-to-Point Service to serve its load must also take
point-to-point service under the applicable Local Network Service
tariff. A load-serving Participant or Non-Participant which takes
Internal Point-to-Point Service in this manner must reserve each month
sufficient Reserved Capacity, after adjusting for any Backyard
Generation, at a Point of Delivery to cover the greater of (i) the
maximum amount of energy that it will receive in any hour, as
determined from meters and adjusted for losses, or (ii) in the case of
a Participant, the portion of its Installed Capability Responsibility
or its Operable Capability Responsibility which must be satisfied with
the resources covered by its Completed Applications and from
Interchange Transactions or (iii) in the case of a Non-Participant the
portions of its reliability obligations to be satisfied with such
resources. Any load-serving entity may use Internal Point-to-Point
Service to effect sales in bilateral
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Original Sheet No. 74
transactions, whether or not it elects to take Point-to-Point Service
to serve load.
20 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 highest of
(i) the Pool PTF Rate, or (ii) a rate which is derived from the annual
incremental cost, not otherwise borne by the Transmission Customer or a
Generation Owner, of any new facilities or upgrades that would not be
required but for the need to provide the requested service or (iii) a rate
which is equal to the Pool's opportunity cost (if and when available)
capped at the cost of expansion. If at any time NEPOOL proposes to charge
a rate based on opportunity cost, it shall first file with the Commission
procedures for computing opportunity cost pricing for all Transmission
Customers. The Transmission Customer shall also be obligated to pay any
applicable congestion or other uplift charge required to be paid pursuant
to Section 24 of this Tariff. The rate for firm Through or Out Service
shall be as follows:
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Original Sheet No. 75
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 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.
21 Payment for Internal Point-to-Point Service
Each Participant or Non-Participant which takes firm or non-firm Internal
Point-to-Point Service shall pay to NEPOOL a charge per Kilowatt of
Reserved Capacity based on an annual
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Original Sheet No. 76
rate (the "IPTP Charge") which shall be the Internal Point-to-Point Service
Rate; provided that if either or both (i) a rate which is derived from the
annual incremental cost, not otherwise borne by the Transmission Customer or
a Generator Owner, of any new facilities or upgrades that would not be
required but for the need to provide the requested service, or (ii) a rate
which is equal to the Pool's opportunity cost (if and when available) capped
at the cost of expansion is greater than the Pool PTF Rate, the IPTP Charge
shall be the higher of such amounts; provided further that no such charge
shall be payable with respect to the use of Internal Point-to-Point Service
to effect a delivery to the NEPOOL power exchange in an Interchange
Transaction. If at any time NEPOOL proposes to charge a rate based on
opportunity cost, it shall first file with the Commission procedures for
computing opportunity cost pricing for all Transmission Customers. The
Transmission Customer shall also be obligated to pay any ancillary service
charges and any applicable congestion or other uplift charge required to be
paid pursuant to Section 24 of this Tariff. The charge for firm Internal
Point-to-Point Service shall be as follows:
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Original Sheet No. 77
Per year - the IPTP Charge
Per month - the IPTP Charge divided by 12
Per week - the IPTP Charge divided by 52
Per day - the IPTP Charge "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 Internal Point-to-Point Service shall be as follows:
Per year - the IPTP Charge
Per month - the IPTP Charge divided by 12
Per week - the IPTP Charge divided by 52
Per day - the IPTP Charge "per week" divided by 7;
Per hour - the non-firm IPTP Charge "per day" divided by 24.
If several power marketers or other entities are involved in a series of
sales of the same energy and/or capacity, transmission service shall be
required only with respect to the delivery to the ultimate wholesale buyer,
and if an Internal Point-to-Point Service charge is payable with respect to
the transaction, the charge shall be paid only with respect
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Original Sheet No. 78
to the delivery to, and absent other arrangements the charge shall be paid
by, the ultimate wholesale buyer.
22 Reservation of Capacity for Point-to-Point Transmission Service
Compliance with the applicable requirements of Part V of this Tariff is
required for the initiation of Through or Out Service or Internal Point-to-
Point Service.
22A In Service
22A.1 Firm or Non-Firm In Service will be provided by the Transmission
Providers through NEPOOL to Eligible Customers in conjunction
with Regional Network Service, Internal Point-to-Point Service or
Through or Out Service, pursuant to the applicable terms and
conditions of this Section 22A and the other applicable
provisions of the Tariff. In Service shall be required with
Through or Out Service only if it is provided with respect to a
transaction which goes through the NEPOOL Control Area. In
Service will not be provided as a separate service under this
Tariff; it may only be provided in
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Original Sheet No. 79
conjunction with Regional Network Service, Internal Point-to-Point
Service or Through or Out Service.
22A.2 An Eligible Customer requesting Reserved Capacity for In Service
shall request the Service in an Application pursuant to Part V,
which in the case of Through or Out Service may be included in
the Application for Through or Out Service.
22A.3 A Transmission Customer which receives Reserved Capacity for In
Service shall be obligated to pay for such Service as follows:
(1) A Transmission Customer which has Reserved Capacity for In
Service as part of or in conjunction with Through or Out
Service shall be obligated only to pay for the Through or
Out Service in accordance with Section 20.
(2) A Transmission Customer which has Reserved Capacity for In
Service as part of or in conjunction with Internal Point-to-
Point Service or Regional Network Service shall be obligated
to pay the Pool PTF Rate per Kilowatt (as determined for
Firm and Non-Firm Service
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 80
for the period of the service in the manner specified in
Section 20 of this Tariff with respect to the rate for
Through or Out Service) of the Reserved Capacity, subject to
reduction in accordance with paragraph (3) or (4) hereof.
(3) A Transmission Customer which has Reserved Capacity for In
Service as part of or in conjunction with Internal Point-to-
Point Service or Regional Network Service to serve its load
shall be entitled to a credit against the payment required
by paragraph (2) above for each hour in an amount equal to
(a) the Pool PTF Rate per Kilowatt per hour times (b) the
greater of (i) the amount of Energy received for the hour
from the resources covered by its Completed Applications for
the In Service, or (ii) the Installed Capability credit
allowed for such resources.
(4) A Transmission Customer which has Reserved Capacity for In
Service as part of or in conjunction with Internal Point-to-
Point
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Original Sheet No. 81
Service to effect a sale to the power exchange of
Energy or Installed Capability imported pursuant to such
reservation in an Interchange Transaction shall be entitled
to a credit against the payment required by paragraph (2)
above for each hour in an amount equal to (a) the Pool PTF
Rate per Kilowatt per hour times (b) the greater of (i) the
amount of Energy delivered to the power exchange for the
hour from the resources covered by its Completed
Applications for the In Service, or (ii) the credit allowed
for the Installed Capability delivered by it to the power
exchange.
Notwithstanding the foregoing, a Transmission Customer which
has Reserved Capacity for In Service in conjunction with
Internal Point-to-Point Service or Regional Network Service,
shall not be obligated to pay the Pool PTF Rate for any hour
for which all requests for Reserved Capacity for In Service
have been satisfied of the same type (Firm or Non-Firm)
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Original Sheet No. 82
and the same duration, and this shall be so whether or not
the rate would be required to be paid pursuant to paragraph
(3) or (4) above.
Three principal requirements apply to discounts for In
Service as follows (1) any offer of a discount made by the
Participants must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated
requests for discounts (including requests for use by one's
wholesale merchant or an affiliate's use) must occur solely
by posting on the OASIS, and (3) once a discount is
negotiated, details must be immediately posted on the OASIS.
For any discount agreed upon for service on a path, from
Point(s) of Receipt to Point(s) of Delivery, the
Participants must offer the same discounted transmission
service rate for the same time period to all Eligible
Customers on all unconstrained transmission paths that go to
the
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Original Sheet No. 83
same Point(s) of Delivery on the NEPOOL Transmission System.
22A.4 The provisions of Section 22A.3 are intended as an interim
measure to discourage hoarding of capacity for import
transactions on the Ties. The Participants agree to attempt to
negotiate alternate provisions to discourage hoarding to become
effective October 1, 1999 and to file the alternate provisions by
August 1, 1999. If the Participants fail to make such a filing
by August 1, 1999, any Participant may make its own filing of
proposed provisions to discourage hoarding. If alternate
provisions have not become effective by October 1, 1999, Section
22A.3 shall remain in effect until superseded.
IV. SERVICE DURING THE TRANSITION PERIOD; CONGESTION COSTS; 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 84
23 Transition Arrangements
The transition arrangements include (i) the treatment provided for certain
Excepted Transactions in Section 25, (ii) the provisions in Schedule 9 for
the phase-in of the rates for Regional Network Service, and (iii) 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.
24 Congestion Costs
If limitations in available transmission capacity over any interface within
the NEPOOL Control Area in any hour require that the System Operator
dispatch resources out-of-merit, the System Operator shall determine for
the affected area or areas the aggregate of the Congestion Costs for all
such out-of-merit resources for the hour. The Congestion Costs for each
hour in any month shall be paid as a transmission charge and included in
the charge for Regional Network Service or Internal Point-to-Point Service
or Through or Out Service, whichever is applicable, by those Participants
and Non-Participants which are obligated to pay a Regional Network Service,
Internal Point-to-Point Service or Through or Out
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 85
Service charge for the month, in accordance with the following formula:
CH = CC {circle} (HL{i} + RC{i})
-------------
(HL + RC)
in which
CH = the amount to be paid by a Participant or Non-
Participant for the hour;
CC = the Congestion Costs for the hour to be allocated
and paid pursuant to this Section 24;
HL{i} = the Network Load of the Participant or Non-
Participant for the hour, if it is obligated to
pay a Regional Network Service charge for the
month;
HL = the aggregate of the Network Loads for the hour of
all Participants and Non-Participants which are
obligated to pay a Regional Network Service charge
for the month;
RC{i} = the Reserved Capacity, if any, for Internal Point-
to-Point Service or Through or Out Service of the
Participant or Non-Participant for the hour; and
RC = the aggregate Reserved Capacity, if any, for
Internal Point-to-Point Service or Through or Out
Service of
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 86
all Participants and Non-Participants for the hour.
Except as provided in the next sentence, this Section 24 shall terminate no
later than December 31, 1999. Notwithstanding the foregoing, if prior to
January 1, 2000, Participants having in the aggregate the requisite number
of Voting Shares have executed and filed with the Commission an amendment
to the Agreement and/or the Tariff to modify subsection (b) of Section
14.14 of the Agreement or to adopt some other modified or substitute
provision dealing with the allocation of Congestion Costs in a constrained
transmission area, but such amendment has not become effective, and/or the
preparation of necessary implementing rules and computer software has not
been completed prior to January 1, 2000, if the Management Committee so
elects this Section 24 shall continue in effect until such amendment
becomes effective and such rules and computer software have been completed.
As used in this Section 24, the "Congestion Cost" of an out-of-merit
resource for an hour means the product of (i) the difference between its
Dispatch Price and the Energy Clearing
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Original Sheet No. 87
Price for the hour, times (ii) the number of megawatt hours of out-of-merit
generation produced by the resource for the hour. The "Dispatch Price" of
an out-of-merit resource for an hour is the price to provide energy from the
resource, as determined pursuant to market operation rules approved by the
NEPOOL 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. The "Energy Clearing Price" for an hour is the
price determined for the hour in accordance with Section 14.8 of the
Agreement.
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") 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
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Original Sheet No. 88
required to take Local Network Service for such
transfers and other uses. The period for which each Excepted Transaction
will continue to be effected under such existing transmission agreements
shall be:
(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 NEPOOL 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 NEPOOL Control
Area of its Unit Contract Entitlement, under a contract entered
into by 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 NEPOOL 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;
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Original Sheet No. 89
(2) for the Transition Period, the transfer to a Participant's system
within the NEPOOL Control Area of its Unit Contract Entitlement in
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
(3) for the period from the effective date of the Tariff until the
termination of the transmission agreement:
(a) 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) 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-1; and
(c) transfers and other uses within the NEPOOL Control Area, as of
November 1, 1996, of the NEPOOL Transmission System under the
other transmission
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 90
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 November 1, 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. Further, 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 91
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 or as Internal Point-to-Point Service or as Through or Out
Service.
When the transfers and other uses effected under the transmission
agreements that are Excepted Transactions 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 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 92
Notwithstanding the foregoing or any other section of the Tariff, existing
agreements which provide for the support of the costs of transmission
facilities or for the interconnection of transmission facilities shall
continue in effect until the termination of the agreement to provide for
such support or for the rights and obligations of the parties with respect
to the interconnection arrangements. Attachment G-2 lists certain
additional agreements covering transactions, the status of which is
described in the Attachment.
V. POINT-TO-POINT TRANSMISSION SERVICE; IN SERVICE
Preamble
Firm or Non-Firm Point-To-Point Transmission Service (including any In
Service to be applied for in an Application pursuant to this Part V, which
shall be deemed to be Point-to-Point Transmission for purposes of
determining the application of this Part V to the Application for In
Service) shall be reserved by all Transmission Customers, whether
Participants or Non-Participants, for all new transfers to be effected as
Internal Point-to-Point Service or as Through or Out Service, pursuant to
the applicable terms and conditions
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 93
of Part III and this Part V of the Tariff. Point-To-Point Transmission
Service is the service required for the receipt of capacity and/or energy
at designated Point(s) of Receipt and the transmission of such capacity
and/or energy to designated Point(s) of Delivery.
26 Scope of Application of Part V
Except for the deposit and creditworthiness requirement of Section 31.3,
which will apply only to Non-Participants, all of the requirements of this
Part V shall be fully applicable to both Participants and Non-Participants
requesting In Service, Internal Point-to-Point Service or Through or Out
Service. Alternative deposit and creditworthiness requirements are
applicable to Participants under NEPOOL's Financial Assurance Policy.
Reservations under the Tariff shall not be required for the use of
Internal Point-to-Point Service for deliveries to the NEPOOL power
exchange in Interchange Transactions from a Point of Receipt within the
NEPOOL Control Area, but are required for the use of In Service for such
deliveries from a Point of Receipt at the NEPOOL Control Area boundary.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 94
27 Nature of Firm Point-To-Point Transmission Service
27.1 Term: The minimum term of Firm Point-To-Point Transmission 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 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 31.
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
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 conditional reservation deadline, if
available transmission capability is insufficient to satisfy all
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 95
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. A longer term
competing request for Short-Term Firm Point-To-Point Transmission
Service will be granted if the Eligible Customer with the right of
first refusal does not agree to match the competing request within 24
hours (or earlier if necessary to comply with the scheduling
deadlines provided in Section 27.8) from being notified by the System
Operator of a longer-term competing request for Short-Term Firm
Point-To-Point Transmission Service. After the conditional
reservation deadline, service will commence pursuant to the terms of
Part III of this Tariff. Firm Point-To-Point Transmission Service
will always have a reservation priority over non-firm Point-To-Point
Transmission Service under the Tariff. All Long-Term Firm Point-To-
Point Transmission Service will have reservation priority with Native
Load Customers and Excepted Transactions. Reservation priorities for
existing firm service customers, including customers receiving
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 96
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 Transmission Provider that owns PTF will be subject
to the rates, terms and conditions of this Tariff when making Third-
Party Sales to be transmitted as Point-to-Point Transmission 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 Transmission Provider that owns PTF will
maintain separate accounting, pursuant to Section 8, for any use of
Firm Point-To-Point Transmission Service to make Third-Party Sales to
the extent not paid for under this Tariff.
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 Completed Application for Long-
Term or Short-Term Firm Point-To-Point Transmission Service to be
transmitted
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 97
pursuant to this Tariff. 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 NEPOOL
Transmission System is not capable of providing new Firm Point-To-
Point Transmission Service without (1) degrading or impairing the
reliability of service to Native Load Customers, Network Customers,
customers taking service for Excepted Transactions and other
Transmission Customers taking Firm Point-To-Point Transmission
Service, or (2) interfering with a Participant's ability to meet
prior firm contractual commitments to others, the Transmission
Providers will be obligated to arrange to expand or upgrade PTF for
Long-Term Firm Service pursuant to the terms of Section 33. The
Transmission Customer must agree to compensate the Transmission
Providers or any other entity designated to effect construction
through the System Operator for any necessary transmission facility
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 98
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 on an incremental basis 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 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, the System Operator will
curtail service to Network
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 99
Customers and Transmission Customers taking Firm Point To-Point
Transmission Service on a basis comparable to the Curtailment of
service to the Participants' Native Load Customers (i.e., in
proportion to their respective Load Ratio Shares). 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 effect a Curtailment of Firm
Transmission Service, the Transmission Customer shall make the
required reductions upon the System Operator's request. However,
NEPOOL reserves the right to effect a Curtailment, in whole or in
part, of 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 of the NEPOOL
Transmission System. The System Operator will notify all affected
Transmission Customers in a timely manner of any scheduled
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 100
Curtailments. In the event the System Operator exercises its right to
effect a Curtailment, in whole or part, of Firm Point-to-Point
Transmission Service, no credit or other adjustment shall be provided
as a result of the Curtailment with respect to the charge payable by
the Customer.
27.7 Classification of Firm Point-To-Point Transmission Service:
(a) A Transmission Customer taking Firm Point-To-Point Transmission
Service may (1) change its Points of Receipt and Delivery 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 Transmission Provider or its
designee constructed new facilities or upgraded facilities to
accommodate the original firm service, such Transmission
Provider or its designee shall continue to be compensated for
its facility costs by the Transmission Customer.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 101
(b) A Transmission Customer may purchase transmission service to
make sales from multiple generating units or contracts that are
on the NEPOOL Transmission System. For such a purchase of
transmission service the Point of Receipt shall be deemed to be
the NEPOOL power exchange, unless the multiple generating units
are at the same generating plant, in which case the units'
interconnection point with PTF will be treated as the Point of
Receipt.
(c) Firm deliveries will be provided from the Point(s) of Receipt to
the Point(s) of Delivery. Each Point of Receipt at which firm
transmission capacity is reserved for Long-Term Firm Point-to-
Point Transmission Service by the Transmission Customer shall be
set forth in the Service Agreement for such Service along with a
corresponding capacity reservation associated with each Point of
Receipt. Points of Receipt and corresponding capacity
reservations shall be as mutually agreed upon by the System
Operator and the Transmission Customer
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 102
for Short-Term Firm Point-to-Point Transmission Service and may
be identified as the NEPOOL power exchange in circumstances where
the System Operator does not require greater specificity. Each
Point of Delivery at which firm transmission capacity is reserved
for Long-Term Firm Point-to-Point Transmission Service by the
Transmission Customer shall be set forth in the Service Agreement
for such Service along with a corresponding capacity reservation
associated with Point of Delivery and may be identified as the
NEPOOL power exchange. Points of Delivery and corresponding
capacity reservations shall be as mutually agreed upon by the
System Operator and the Transmission Customer for Short-Term Firm
Point-to-Point Transmission Service. 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 103
under the terms of Schedule 8 or Schedule 10, whichever is
applicable. The Transmission Customer's Use 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 the Use by a Transmission Customer (including
Third-Party Sales by the Participants) exceeds that Transmission
Customer's Reserved Capacity at any Point of Receipt or Point of
Delivery in any hour, it shall pay 200% of the charge which is
otherwise applicable for each Kilowatt of the excess. In
addition, the System Operator will record all instances in which
a Transmission Customer's Use exceeds that Transmission
Customer's firm Reserved Capacity, and if in any calendar year
more than 10 such instances occur with respect to any single
Transmission Customer, then the System Operator may require such
Transmission Customer to apply for additional Firm Point-to-
Point Transmission Service under the Tariff in an amount equal
to the greatest amount of
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 104
the excess of such Transmission Customer's Use over its firm
Reserved Capacity for the remainder of that calendar year.
Charges for such additional Firm Point-to-Point Transmission
Service will relate back to the first day of the month following
the month in which the System Operator notifies such Transmission
Customer that it is subject to the provisions of this paragraph.
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 (including schedules for resources to be self
scheduled) must be submitted to the System Operator no later than
noon of the day prior to commencement of such service. In the cases
which are bid into the power exchange, the Energy bid price must be
submitted to the System Operator by the noon deadline. 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 105
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 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 for periods ranging from one hour to one
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 106
month. However, a Purchaser of Non-Firm Point-To-Point Transmission
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
shall be available from transmission capability in excess of that
needed for reliable service to Native Load Customers, Network
Customers, customers for Excepted Transactions 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 based on the highest price offered
by the Eligible Customer for the Transmission Service, or in the
event the price for all
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 107
Eligible Customers is the same, will be prioritized on a first-come,
first-served basis i.e., in the chronological sequence in which each
Customer has reserved service. Eligible Customers that have already
reserved shorter term service have the right of first refusal to match
any longer term reservation before being preempted. A longer term
competing request for Non-Firm Point-To-Point Transmission Service
will be granted if the Eligible Customer with the right of first
refusal does not agree to match the competing request: (a) immediately
for hourly Non-Firm Point-To-Point Transmission Service after
notification by the System Operator; and (b) within 24 hours (or
earlier if necessary to comply with the scheduling deadlines provided
in Section 28.6) for Non-Firm Point-to-Point Transmission Service
other than hourly transactions after notification by the System
Operator. Secondary transmission service for Network Customers
pursuant to Section 40.4 will have a higher priority than any Non-Firm
Point-To-Point Transmission Service. Non-Firm Point-To-Point
Transmission Service over secondary
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 108
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: A Transmission Provider will be subject to
the rates, terms and conditions of this Tariff when making Third-
Party Sales to be transmitted as Non-Firm Point-to-Point Transmission
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 Transmission Provider will maintain separate
accounting, pursuant to Section 8, for any use of Non-Firm Point-To-
Point Transmission Service to make Third-Party Sales, to the extent
not paid for under this Tariff.
28.4 Service Agreements: The System Operator shall offer a standard
form Point-To-Point Transmission Service Agreement (Attachment A,
modified to cover non-firm service) to an Eligible Customer when the
Eligible Customer first submits a Completed Application for Non-Firm
Point-To-Point Transmission Service pursuant to the
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 109
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 under
applicable terms and conditions contained in Part III of this Tariff.
The NEPOOL Participants undertake no obligation under this Tariff to
plan the NEPOOL Transmission System in order 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 do so with the full realization that such
service is subject to availability and to Curtailment or Interruption
under the terms of this Tariff. In the event that the Use by a
Transmission Customer (including Third-Party Sales by a Participant)
exceeds that Transmission Customer's non-firm Reserved Capacity at
any Point of Receipt or Point of Delivery, it shall pay 200% of the
charge which is otherwise applicable for
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 110
each Kilowatt of the excess. In addition, the System Operator will
record all instances in which a Transmission Customer's Use exceeds
that Transmission Customer's non-firm Reserved Capacity, and if in any
calendar year more than 10 such instances occur with respect to any
single Transmission Customer, then the System Operator may require
such Transmission Customer to apply for additional Non-Firm
Point-to-Point Transmission Service under the Tariff in an amount
equal to the greatest amount of the excess of such Transmission
Customer's Use over its non-firm Reserved Capacity for the remainder
of that calendar year. Charges for such additional Non-Firm
Point-to-Point Transmission Service will relate back to the first day
of the month following the month in which the System Operator notifies
such Transmission Customer that it is subject to the provisions of
this paragraph.
(a) Non-Firm Point-To-Point Transmission 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 111
not to exceed one month's reservation for any one Application.
(b) Each 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. The Point of Receipt or
Point of Delivery may be identified as the NEPOOL power exchange
in circumstances where the System Operator does not require
greater specificity.
28.6 Scheduling of Non-Firm Point-To-Point Transmission Service: Unless
other schedules are permitted pursuant to NEPOOL rules, and except as
otherwise provided below with respect to the scheduling of In
Service, schedules for Non-Firm Point-To-Point Transmission 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 Restated Open Access Transmission Tariff
Original Sheet No. 112
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 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 shall have the right to
adjust accordingly the schedule for capacity and energy to be
received and to be delivered. In the event next-day capacity for In
Service on the Ties is available at noon on any day, this shall be
posted on
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 113
OASIS and shall be available for reservation by Eligible
Customers between noon and 6:00 p.m. If not all requested
reservations for the next-day In Service can be granted, the requests
for the longest number of consecutive hours shall be given priority.
If a Participant has available at the NEPOOL Control Area boundary a
dispatchable resource for which no reservation has been made, and the
Regional Market Operations Committee has determined that it is
appropriate to adopt rules to provide for the service and has adopted
such rules, the System Operator may schedule the resource for the
next day in accordance with such rules on the basis of the bid price
if Transmission capacity for In Service is available, notwithstanding
the lack of a reservation.
28.7 Curtailment or Interruption of Service: The System Operator
reserves the right to effect a Curtailment, in whole or in part, of
Non-Firm Point-To-Point Transmission Service provided under this
Tariff for reliability reasons when an emergency or other unforeseen
condition threatens to impair or degrade the
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 114
reliability of the NEPOOL Transmission System. The System Operator
reserves the right to effect an Interruption, in whole or in part, of
Non-Firm Point-To-Point Transmission Service provided under this
Tariff 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. The System Operator also will discontinue or
reduce service to the Transmission Customer to the extent that
deliveries for transmission are discontinued or reduced at the
Point(s) of Receipt. Where required, Curtailments or Interruptions
will be made on a non-discriminarty basis to the transaction(s) that
effectively relieve the constraint; however, Non-Firm Point-To-Point
Transmission 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 115
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 will have a higher priority than any
Non-Firm Point-To-Point Transmission Service under this Tariff.
Non-Firm Point-To-Point Transmission Service furnished over secondary
Point(s) of Receipt and Point(s) of Delivery will have a lower
priority than any other 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. In the event the System
Operator exercises its right to effect a Curtailment, in whole or
part, of Non-Firm Point-to-Point Transmission Service, no credit or
other adjustment shall be provided as a result of the Curtailment with
respect to the charge payable by the Customer. In the event the
System Operator exercises its right to effect an Interruption, in
whole or part, of Non-Firm Point-to-Point Transmission Service, the
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 116
charge payable by the Customer shall be computed as if the term of
service actually rendered were the term of service reserved; provided
that an adjustment of the charge shall be made only when the
Interruption is initiated by the System Operator, not when the
Customer fails to deliver energy to NEPOOL.
29 Service Availability
29.1 General Conditions: Firm Point-To-Point Transmission Service over,
on or across the NEPOOL Transmission System is available to any
Transmission Customer that has met the applicable requirements of
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 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 117
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 providing appropriate security
deposits in accordance with the terms of Section 31.3.
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 cannot be provided because of
insufficient capability on the NEPOOL Transmission System, one or
more Transmission Providers or other
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 118
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, provided that the Transmission
Customer agrees to compensate the Transmission Providers 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 Transmission Providers or other entities will conform
to Good Utility Practice in determining the need for new transmission
facilities or upgrades and in coordinating the design and construction
of such facilities. This obligation applies only to those facilities
that the designated Transmission Providers or other entities have the
right to expand or modify.
29.5 Deferral of Service: Long-Term Firm Point-To-Point Transmission
Service may be deferred until the designated Transmission Providers
or other entities complete construction of new transmission
facilities or upgrades needed to provide such service whenever it is
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 119
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. The Transmission Provider is 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, point-to-point losses will be allocated
on the basis of PTF average losses as established by the System
Operator. The System Operator shall post on the OASIS the PTF
average losses, which are initially set at 1.13% but shall be
adjusted by the System Operator from time to time. The applicable
real power loss factor shall be determined, after the Second
Effective Date, on the basis of PTF average losses. Average losses
shall be determined initially on an estimated basis, pending the
accumulation of the data needed to make the determination on an
actual basis.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 120
29.7 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 Transmission
Customer to shed load, the Parties shall shed load in accordance with
the procedures under the Agreement and the rules adopted thereunder,
or in accordance with other mutually agreed-to provisions.
30 Transmission Customer Responsibilities
30.1 Conditions Required of Transmission Customers: Firm Point-To-Point
Transmission 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;
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 121
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 Customer under this Tariff, whether or not the
Transmission Customer takes service for the full term of its
reservation; and
e. The Transmission Customer has executed a 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 122
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 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: A request for Firm Point-To-Point Transmission
Service for periods of one year or longer must be made in an
Application, delivered to ISO New England Inc., One Sullivan Road,
Holyoke, MA 01040-2841 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 notice when practicable. Requests for firm
service for
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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 should be
submitted by transmitting the Completed Application to NEPOOL by mail
or telefax. 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 Service shall provide all of the information
included at 18 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;
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(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, or 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. Part 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;
(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 by a Non-Participant shall
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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 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
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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 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 or termination 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
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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
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, a
determination of available transmission capability will be made
pursuant to Section 29.2. 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
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pursuant to Section 33.1. Responses by the System Operator must be
made as soon as practicable to all completed applications and the
timing of such responses must be made on a non-discriminatory basis.
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
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another Application after such withdrawal and termination. Where
a System Impact Study is required, 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 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 for its Reserved Capacity for the
period that
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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 must submit a Completed Application to the System
Operator. Applications should be submitted by entering the
information listed below on the NEPOOL OASIS.
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;
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Original Sheet No. 131
(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:
(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 regulatory or judicial order, or for reliability purposes pursuant
to Good Utility Practice. The System Operator shall treat this
information consistent with the standards of conduct contained in Part
37 of the Commission's regulations.
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Original Sheet No. 132
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 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 9:00 a.m. the second day
before service is to commence. Requests for service received later
than noon of the day 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
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Original Sheet No. 133
daily service, (iii) four hours for weekly service, and (iv) two days
for monthly service.
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, 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 Non-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,
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 the System
Operator 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 any affected Participants in connection with the
Application), will be returned with Interest.
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33.2 System Impact Study Agreement and Cost Reimbursement:
(i) The System Impact Study agreement shall clearly specify 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 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
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Original Sheet No. 136
accommodate the requests for service, the costs of that study
will be equitably prorated among the Eligible Customers.
(iii) For System Impact Studies that the System Operator and any
affected Participants conduct on behalf of the Transmission
Providers, 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, if
required, 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
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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 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.
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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 affected
Transmission Provider(s), 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
Transmission Providers or other entity designated by the affected
Transmission Provider(s) 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
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Original Sheet No. 139
Application) will be returned with Interest. Upon receipt of an
executed Facilities Study agreement, the affected Transmission
Provider(s) 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 affected Transmission Provider(s) 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,
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 Transmission Providers or
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Original Sheet No. 140
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, if required, or
request the filing of an unexecuted Service Agreement with the
Commission and provide the required letter of 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
Transmission Providers or other entities that are responsible for the
construction of the new facilities
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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 Transmission Providers or other
entities to add necessary facilities or upgrade the NEPOOL
Transmission System within a reasonable time. A Transmission Provider
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 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 for Long-Term Firm Point-To-Point
Transmission Service, the portion of the requested Service that can be
accommodated without addition of any
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Original Sheet No. 142
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 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
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System Operator, on behalf of the Transmission Providers or
other 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, or the ability to complete such
facilities, the System Operator will promptly notify the Transmission
Customer. In such circumstances, the System Operator
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will within thirty days of notifying the Transmission Customer of such
delays, convene a technical meeting with the Transmission Customer and
any affected Transmission Providers or other entities responsible for
construction to evaluate the alternatives available to the
Transmission Customer. The System Operator and the affected
Transmission Providers 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 Transmission Providers 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 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
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Original Sheet No. 145
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. 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.
34.3 Refund Obligation for Unfinished Facility Additions:
If the System Operator, the affected Transmission Providers 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
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Original Sheet No. 146
provide the requested Firm Point-To-Point Transmission 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 Transmission Providers 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.
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
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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
systems, the System Operator and the Transmission Providers 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 Transmission Providers 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
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Original Sheet No. 148
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 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 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
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Original Sheet No. 149
and Delivery Points"), in amounts not to exceed the Transmission
Customer's firm capacity reservation, without incurring an additional
Non-Firm Point-to-Point Transmission Service charge or 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-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 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
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Original Sheet No. 150
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
(d) service over Secondary Receipt and Delivery Points on a non-firm
basis shall not require the filing of an Application for Non-Firm
Point-to-Point Transmission Service under the Tariff. However,
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
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priority for service at the firm Receipt Point(s) and Delivery Point(s)
specified in the Transmission Customer's Service Agreement.
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 capped at the
Participants' cost of expansion. 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
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Original Sheet No. 152
services as did the Reseller and the priority of service for the
Assignee shall be the same as that of 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
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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 accurately account for the capacity and energy being
transmitted under this Tariff and to communicate the
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information to the System Operator. Unless otherwise agreed, such
equipment shall remain the property of the Transmission Provider.
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 identifies the need for new
facilities or upgrades, the Transmission Customer shall be responsible for
such costs to the extent they are consistent with Commission policy and
Schedule 11. Whenever a System Impact Study identifies capacity
constraints that may be relieved more economically
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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 policy.
VI. REGIONAL NETWORK SERVICE (NETWORK INTEGRATION TRANSMISSION SERVICE)
The Participants will provide NEPOOL Regional Network Service (Network
Integration Transmission Service), as described in Part II of this Tariff
to Participants and Non-Participants pursuant to the applicable terms and
conditions contained in this Tariff. Part II of this Tariff specifies
certain terms and conditions which are generally applicable to the receipt
of Regional Network Service by both Participants and Non-Participants.
This Part VI specifies additional provisions with respect to the provision
of Regional Network Service.
40 Nature of Regional Network Service
40.1 Scope of Service: Regional Network Service (Network Integration
Transmission Service) is the transmission service described in Section
14 that allows Network Customers to efficiently and economically
utilize their
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resources and Interchange Transactions 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 Regional Network 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 Utility Practice in order to provide the
Network Customer with Regional Network Service over the NEPOOL
Transmission System. Subject to Section 48, each Participant which is
individually a Transmission Provider, on behalf of its Native Load
Customers, shall be required to designate resources and loads in the
same manner as any Network Customer under Part VI of this Tariff.
This information must be consistent with the information used by the
Transmission Provider to calculate available transmission capacity.
The Participants shall include the Network Customer's Network Load in
NEPOOL Transmission System planning and
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shall, consistent with Good Utility Practice, endeavor to construct and
place into service sufficient transmission capacity to deliver Network
Resources to serve the Network Customer's 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 that are
individually Transmission Providers will provide firm transmission
service over the NEPOOL Transmission System to the Network Customer
for the delivery of energy and/or capacity from its resources to
service its Network Loads on a basis that is comparable to the
Participants' 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 receive or deliver energy and/or capacity in
connection with Interchange Transactions. Such energy and capacity
shall be transmitted, on an as-available basis, at no additional
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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 Provider is 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 on the basis of average losses as
established by the System Operator. The System Operator shall post on
the OASIS the PTF average losses, which are initially set at 1.13%,
but shall be adjusted by the System Operator from time to time. The
applicable real power loss factor shall be determined, after the
Second Effective Date, on the basis of PTF average losses. Average
losses will be determined initially on an estimated basis, pending the
accumulation of the data needed to make the determinations on an
actual basis.
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40.6 Restrictions on Use of Service: The Network Customer is entitled to
use Regional Network 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 Participants will
provide Regional Network Service to any Eligible Customer, provided
that, except as otherwise provided in Section 48, (i) the Eligible
Customer completes an Application for service as provided under Part
VI of this Tariff, (ii) the Eligible Customer and the System Operator
complete the technical arrangements set forth in Sections 41.3 and
41.4, (iii) the Eligible Customer executes a Service Agreement in the
form of Attachment B for service under Part VI of this Tariff or
requests in writing that the Transmission Provider file a proposed
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.
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41.2 Application Procedures: Except as otherwise provided in Section 48,
an Eligible Customer requesting Network Integration Transmission
Service under this Tariff must submit an Application, with a deposit
approximating the charge for one month of service, to the System
Operator as far as possible in advance of the month in which service
is to commence. Completed Applications for Network Integration
Transmission 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. 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;
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(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;
(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,
if not otherwise available to the System Operator:
- 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
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- Minimum loading level of unit
- Normal operating level of unit
- Any must-run unit designations required for system
reliability or contract reasons
- Approximate variable dispatch price ($/MWH) for
redispatch computations
- Arrangements governing sale and delivery of power to
third parties from generating facilities located in the
NEPOOL Control Area, where only a portion of unit
output is designated as a Network Resource
- Description of external 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 Participants
- 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
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- Transmission System maps that include any proposed
expansions or upgrades
- Thermal ratings of Eligible Customer's Control Area
ties with other Control Areas; and
(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 Eligible Customer and the System Operator 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
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file a new or revised Application that fully complies with the
requirements of 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: Except as otherwise provided in Section 48, 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 as practicable taking into
consideration the Service Commencement Date.
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41.4 Network Customer Facilities: The provision of Regional Network
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: The designation of generation
resources as Network Resources shall be effected automatically in
accordance with the definition thereof for Participant Network
Customers. A Network Customer shall designate to the System Operator
those Network Resources which are owned, purchased or leased by it.
The Network Resources so designated may not
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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, or to the extent that the resource is being delivered directly
to a load being served with Internal Point-to-Point Service. Any
owned, purchased or leased resources that were serving the Network
Customer's loads under firm agreements entered into on or before the
Compliance Effective Date shall be deemed to continue to be so owned,
purchased or leased by it until the Network Customer informs the System
Operator of a change. Nothing in this Section is intended to relieve
any customer of its obligation to pay the charge for Internal Point-
to-Point Service deliveries of Network Resources to it.
42.2 Designation of New Network Resources: The Network Customer shall
identify the Network Resources which are owned, purchased or leased by
it to the System Operator with as much advance notice as practicable.
A designation of a Network Resource as owned, purchased or
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leased by the Customer must be made by a notice to the System Operator.
Each such designation shall be effective as of the beginning of a
month, shall remain in effect for at least one full month, and shall
only be terminated at the end of a month.
42.3 Termination of Network Resources: The Network Customer may
terminate the designation of all or part of a Network Resource as
owned, purchased or leased by it at any time but should provide
notification to the System Operator as soon as reasonably practicable.
42.4 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.
42.5 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.
42.6 Limitation on Designation of Resources: The Network Customer must
demonstrate that it owns, leases or has committed to purchase an
Entitlement in a generation resource pursuant to an executed contract
in order to designate the generating resource to serve its Network
Load. 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. An Entitlement in
a generating unit within the NEPOOL Control Area which is placed in
service after the Compliance Effective Date (other than a unit which
has lost its capacity value when its capacity value is restored or a
deactivated unit which may be reactivated
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without satisfying the requirements of Section 49 of the Tariff in
accordance with the provisions thereof) may not be designated to serve
a Network Customer's load unless, and only to the extent that, it has
been determined to be integrated into the NEPOOL Transmission System in
accordance with Section 49 of this Tariff.
42.7 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 interface to integrate the Network Customer's
resources (or substitute purchases in Interchange Transactions) with
its Network Loads. However, a Network Customer's use of the NEPOOL
total interface capacity with other transmission systems to serve its
Network Load may not exceed the Network Customer's load.
43 Designation of Network Load
43.1 Network Load: Except as otherwise provided in Section 48, the
Network Customer must designate the individual Network Loads on whose
behalf the Participants will provide through NEPOOL Network
Integration Transmission
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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. 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 policy and
Schedule 11.
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
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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 Control Area, 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 resources to serve 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
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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 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, if any, 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 the Participants and charged to
the Network Customer as reflected in the Service Agreement or other
appropriate agreement. However, the System Operator must treat any
requested change in Network Integration Transmission Service in a non-
discriminatory manner.
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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 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
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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, 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 System Operator and any affected Participant
for performing the required System Impact Study. For a service
request to remain a Completed Application, the Eligible Customer
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shall execute a 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 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 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
Eligible Customer will not be assessed a charge for such existing
studies;
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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 prorated among the Eligible
Customers.
(iii) For System Impact Studies that the System Operator and any
affected Participants conduct on behalf of a Participant which is
a Transmission Provider, the Participant will record the cost of
the System Impact Studies pursuant to Section 8.5.
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
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diligence to complete the required System Impact Study within
a 60-day period. The System Impact Study, if required, shall
identify any system constraints, redispatch options, or the
need for additional Direct Assignment Facilities or other facility
additions or 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 for an Eligible Customer as it uses when
completing studies for the Participants. The System Operator shall
notify the Eligible Customer immediately upon completion of the System
Impact Study
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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 affected
Transmission Provider(s), within thirty days of the completion of the
System Impact Study, shall 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 affected Transmission
Provider(s) for performing the required Facilities Study. For a
service request to remain a
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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 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
Transmission Provider(s)) shall be returned with Interest. Upon
receipt of an executed Facilities Study agreement, the affected
Transmission Provider(s) will use due diligence to complete the
required Facilities Study within a sixty-day period. If the affected
Transmission Provider(s) are unable to complete the Facilities Study
in the allotted time period, the affected Transmission Provider(s)
shall notify the Eligible Customer and provide an estimate of the time
needed to reach a final determination and any resulting increase in
the cost, 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
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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 a letter of credit or other reasonable form of
security acceptable to the affected Transmission Provider(s) or other
entities that will be responsible for the construction of the new
facilities or upgrades 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 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.
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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 constraint exists on the
NEPOOL Transmission System, and such constraint may impair the
reliability of the NEPOOL Transmission 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
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can be maintained by redispatching resources, the System Operator
will initiate procedures pursuant to a Network Operating Agreement
to redispatch all the Network Customer's 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.
45.3 Cost Responsibility for Relieving Transmission Constraints: To the
extent not otherwise covered under the Network Operating Agreement,
whenever the System Operator implements least-cost redispatch
procedures in response to a transmission constraint, the customers
taking Internal Point-to-Point Service, Through or Out Service and/or
In Service and Network Customers will each bear a proportionate share
of the total redispatch cost.
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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 effect a Curtailment of
scheduled deliveries, such schedule shall be curtailed in accordance
with the Network Operating Agreement.
45.5 Allocation of Curtailments: The System Operator shall on a non-
discriminatory basis, effect a Curtailment of the transaction(s) that
effectively relieve the constraint. However, to the extent
practicable and consistent with Good Utility Practice, any Curtailment
will be shared by the customers taking Internal Point-to-Point
Service, Through or Out Service and/or In Service and Network
Customers in proportion to their respective Load Ratio Shares. The
System Operator shall not direct the Network Customer to effect a
Curtailment of schedules to an extent greater than the System Operator
would effect a Curtailment of the Participants' schedules under
similar circumstances.
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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 customers taking Internal Point-to-Point Service,
Through or Out Service and/or In Service and Network Customers 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 effect a
Curtailment of Network 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
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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 effect a Curtailment of 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 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.
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46 Rates and Charges
The Network Customer shall pay Transmission Providers for any Direct
Assignment Facilities and its share of the cost of any required Network
Upgrades and applicable study costs consistent with Commission policy and
Schedule 11, along with the payment to the System Operator of the charges
for Ancillary Services and the charge for Regional Network Service provided
under this Tariff.
46.1 Determination of Network Customer's Monthly Network Load: The
Network Customer's "Monthly Network Load" is its hourly Network Load
(including its designated Network Load not physically interconnected
with the Transmission Provider under Section 43.3) coincident with the
coincident aggregate Network Load of the Participants and other
Network Customers served in each Local Network in the hour in which
the coincident Network Load is at its maximum for the month ("Monthly
Peak").
47 Operating Arrangements
47.1 Operation under The Network Operating Agreement: The Network
Customer shall plan, construct, operate and
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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 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
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outputs for redispatch required under Section 45, 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
memorandum 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 (NPCC),
(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 NPCC
requirements. The System Operator shall not unreasonably refuse to
accept
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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.
48 Scope of Application of Part VI to Participants
(a) All Participants which are receiving Regional Network Service on the
Compliance Effective Date shall be deemed to have requested to
continue Regional Network Service and to have identified as their
Network Resources and Network Load all of their resources and load as
of the Compliance Effective Date, unless they elect in accordance with
Section 3.3 of this Tariff to receive Internal Point-to-Point Service
at one or more Points of Delivery from one or more Point(s) of
Receipt.
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(b) In view of the operational, informational and financial obligations
imposed on Participants by the Agreement, the NEPOOL Financial
Assurance Policy and NEPOOL rules, the following requirements of Part
VI of this Tariff shall not be applicable to Participants:
(1) the Application requirement specified in Sections 41.1(i) and 42
of this Tariff;
(2) the deposit requirement specified in Section 41.2 of this Tariff;
(3) the requirement that a Network Customer execute a Service
Agreement, as specified in Section 41.1 (iii) of this Tariff;
provided that a Service Agreement shall be required (i) for any
Participant initially taking Regional Network Service after the
Compliance Effective Date, (ii) if a Participant serves load not
physically interconnected with the NEPOOL Transmission System
pursuant to Section 43.3 of this Tariff or (iii) if a new
facility or upgrade is to be constructed pursuant to Section 44.4
of this Tariff;
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(4) the requirement that a Network Customer execute a Network
Operating Agreement, as specified in Section 41.1(iv) of this
Tariff; provided that a Network Operating Agreement shall be
required if a Participant serves load not physically
interconnected with the NEPOOL Transmission System pursuant to
Section 43.3 of this Tariff; and
(5) the requirement that a Network Customer provide an annual update
of Network Load and Network Resource forecasts, as specified in
Section 43.6 of the Tariff.
Notwithstanding the foregoing, if the System Operator determines at any
time that it requires information from a Participant which would be
contained in an Application submitted pursuant to Section 41.2 or an annual
update of Network Load and Network Resource forecasts provided pursuant to
Section 43.6, it has the right to require that the Customer provide the
information.
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VII.INTERCONNECTIONS
49 Interconnection Requirements
Any Participant or Non-Participant which proposes to site a new generating
unit at a site owned by it, or which it has the right to acquire, or to
materially change and increase the capacity of an existing generating unit,
located in the NEPOOL Control Area, shall be obligated to:
(a) satisfy any applicable requirements under the local tariff of the
Transmission Provider in whose Local Network the generator would be
located or to which the interconnection would be connected, including
the filing with the Commission of an interconnection agreement, which
interconnection agreement may be filed by the Transmission Provider
unsigned either on its own or at the request of the Generator Owner;
(b) submit to the System Operator an interconnection application complying
with requirements specified by the System Operator, and enter into an
agreement with the System Operator and, if necessary, one or more
affected Transmission Providers to provide for the conduct of a
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System Impact Study and, if required, enter into an agreement with one
or more Transmission Providers to provide for the conduct of a
Facilities Study, to determine what additions or upgrades to the NEPOOL
Transmission System and to the Non-PTF System are required in order to
permit the full integration of its generating unit into the NEPOOL
system. The System Impact Study and Facilities Study shall be
conducted in accordance with the procedures, and subject to the
obligations, specified in Section 33 of this Tariff; and
(c) submit its proposal for review in accordance with Section 18.4 of the
Agreement and to take any action required pursuant to Section 18.5 of
the Agreement as a result of such review in order that its generating
unit will be fully integrated into the NEPOOL Transmission System on a
basis which permits the firm delivery of the output of the unit;
provided that the Participant or Non-Participant may proceed with the
siting of a new or materially changed generating unit under
circumstances which do not permit full integration of the unit
temporarily or permanently if it agrees in writing that
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the output of the unit will be limited to below its full capacity, to
the levels which can be delivered on a firm basis as identified in
accordance with Sections 18.4 and 18.5 of the Agreement except in
emergency conditions, as such conditions are determined by the System
Operator; and upon the satisfaction of the obligations described in
(a), (b) and (c) above the Generator Owner shall have the right to be
interconnected to the NEPOOL Transmission System. (If required, any
preliminary feasibility study shall be performed under a separate
agreement.)
If the studies conducted pursuant to this Section indicate that new PTF
facilities or a facility modification or other PTF upgrades are necessary
in connection with a new or materially changed generating unit, or
otherwise in order 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, upon approval of the
studies by the Regional Transmission Planning Committee, subject to review
by the System Operator, one or more Transmission Providers or their
designees shall be designated by the Regional Transmission Planning
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Committee, subject to review by the System Operator, to design and effect
the construction or modification.
Upon the designation of a Transmission Provider or its designee to design
and effect a PTF addition or upgrade and the fixing of the cost
responsibilities of the Participants and Non-Participants and agreement as
to the security and other provisions of said arrangement, the Transmission
Provider or its designee designated to perform the construction shall, (i)
in accordance with the terms of the arrangements described in this
paragraph and subject to Sections 18.4 and 18.5 of the Agreement, use its
best efforts to design and effect the proposed construction or modification
and (ii) enter into an interconnection agreement with the Generator Owner
as described in paragraph (a) of this Section 49.
Any facilities required in connection with a new generating unit or the
material change of an existing generating unit which constitute a Direct
Assignment Facility shall be fully paid for by the Participant or Non-
Participant proposing the new generating unit or material change under an
interconnection agreement with the Transmission Provider.
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Subject to the foregoing, a Participant or Non-Participant proposing a new
or materially changed generating unit, shall be obligated to pay, under an
interconnection agreement with the Transmission Provider, a share of the
full costs of any new PTF facilities or facility modification or other PTF
upgrade which is required and to provide security for its obligations in
accordance with Schedule 11 to this Tariff.
For purposes of determining whether a generating unit is placed in service
after the Compliance Effective Date for purposes of Section 42.6 of this
Tariff or is obligated to satisfy the requirements of this Section, on
January 1, 1999 and thereafter, any unit in active or deactivated status,
as classified in the April 1998 NEPOOL Capacity, Energy, Loads and
Transmission Report and any other generating unit in active status on that
date may receive deactivated status, subject to criteria developed by the
appropriate NEPOOL committee. If so designated, the deactivated unit may
retain this status for a period not to exceed three (3) years from the date
the unit receives deactivated status and shall not be obligated to comply
with this Section if it is reactivated during such period, but if not
reactivated during such period
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shall be deemed retired at the end of such period for purposes of this
Section. Notwithstanding the foregoing, if a proposal is submitted and
approved under Section 18.4 of the Agreement during the three-year period to
1) reactivate, 2) materially modify and reactivate or 3) replace the
deactivated unit, the unit may be reactivated without material modification
without compliance with this Section. The cost of any PTF upgrade required
by 2) or 3) above shall be shared in accordance with Schedule 11 of this
Tariff. Notwithstanding the foregoing, any unit in deactivated status prior
to January 1, 1999 shall be entitled to retain such status through December
31, 2001 whether or not a submission is made under Section 18.4 during such
period.
50 Rights of Generator Owners
Upon compliance with the applicable requirements of the Tariff, (i) any
generating unit located in the NEPOOL Control Area which is in service on
the Compliance Effective Date (including a unit that has lost its capacity
value when its capacity value is restored or a deactivated unit which may
be reactivated without satisfying the requirements of Section 49 of this
Tariff in accordance with the provisions thereof);
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(ii) any generating unit located in the NEPOOL Control Area which is placed
in service after the Compliance Effective Date after complying with Section
49 and Schedule 11 of the Tariff; and (iii) any resource outside the NEPOOL
Control Area that is the subject of a Firm Transmission Service transaction
shall with respect to NEPOOL internal services have rights equal to all
other firmly integrated resources, and shall not at any later time (other
than in connection with service over the Ties not specifically referred to
in the Section 18.4 approval) be required to pay for any additional Network
or other upgrades or costs required in order to further reinforce the
transmission system; provided that any generating unit placed in service
after the Compliance Effective Date, the output of which is limited in
accordance with Section 18.4 of the Agreement to below its full capacity
shall have such rights only up to the permitted output level(s); provided
further that there will be no adverse distinctions in the planning process
or with respect to transmission facility construction between Firm
Transmission Service Customers, any generators referred to in (i) or (ii)
above, and any resources referred to in (iii)
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above. It is further provided that, in accordance with Section 18.4 of the
Agreement, no generator referred to in (i) or (ii) above shall have its
established operating limits reduced, except for emergency situations, as a
result of any new request for NEPOOL interconnection or subsequent Section
18.4 approvals.
51 New Interconnection to Other Control Area
The allocation of PTF upgrade costs associated with interconnections to
other Control Areas placed in service or modified after the Compliance
Effective Date ("New Interconnections") is not presently addressed in this
Tariff. The Participants intend to address in a filing with the Commission
prior to the Compliance Effective Date arrangements for the allocation and
payment of such PTF upgrade costs as follows:
(i) costs of PTF upgrades for New Interconnections to accommodate a
reservation for In Service shall be allocated and paid in a manner
that is consistent with the cost allocation mechanism set forth in
Schedule 11 to this Tariff; and
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(ii) costs of PTF upgrades for New Interconnections to accommodate a
reservation for Through or Out Service shall be allocated and paid in
a manner that is consistent with Section 20 of this Tariff.
It is expected that the rights associated with these reservations will be
equal to the rights for similar reservations for service on existing Ties
that are in service on the Compliance Effective Date.
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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 Internal Point-to-Point Service rate, to the Through or
Out Service rate and to the Regional Network Service rate.
The System Operator expenses will be based on the functions required to
provide these services and include, but are not limited to:
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Original Sheet No. 202
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.
This amended Schedule 1 shall be effective as of September 1, 1997 and the
initial surcharge herein under shall be effective from September 1, 1997 to
June 1, 1998. The surcharge shall be redetermined annually as of June 1 in
each year and shall be in effect for the succeeding twelve months. The rate
surcharge per kilowatt for each month is one-twelfth of 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 prior calendar year.
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The rate surcharge for each Participant or Non-Participant which pays the
Regional Network Service rate for a month shall be based on the number of
kilowatts of its Monthly Network Load (as defined in Section 46.1) for the
month. The rate surcharge for each Participant or Non-Participant which is
obligated to pay the Internal Point-to-Point Service rate or the Through or Out
Service rate for the month shall be based on the highest amount of its Reserved
Capacity for each transaction scheduled as Internal Point-to-Point Service
and/or Through or Out Service for the month.
The revenues received by the System Operator for NEPOOL for providing
Scheduling, System Control and Dispatch Service shall be allocated each month
among the System Operator and the Participants whose satellite or other costs
are reflected in the computation of the surcharge for the service in proportion
to the costs for each which are reflected in the computation of the surcharge.
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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 charge for each hour for such service shall be paid
by each Participant or
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Non-Participant which receives either Regional Network Service or Internal
Point-to-Point Service or Through or Out Service and shall be determined in
accordance with the following formula:
CH = (CC + LOC + SCL) (HL{1} + RC{1})
-------------
(HL + RC)
in which
CH = the amount to be paid by the Participant or Non-
Participant for the hour;
CC = the capacity costs for the hour, which shall be stated
in an informational filing with the Commission;
LOC = the lost opportunity costs for the hour to be paid to
Participants who provide VAR support in accordance
with Section 14.5(a) of the Agreement commencing on
the Second Effective Date;
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SCL = the cost of energy used in the hour by generating
facilities, synchronous condensers or static
controlled VAR regulators in order to provide VAR
support to the transmission system;
HL{1} = the Network Load of the Participant or Non-Participant
for the hour;
HL = the aggregate of the Network Loads of all Participants
and Non-Participants for the hour;
RC{1} = the Reserved Capacity for Internal Point-to-Point
Service and/or Through or Out Service of the
Participant or Non-Participant for the hour; and
RC = the aggregate Reserved Capacity for Internal Point-to-
Point Service and/or Through or Out Service of all
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Participants and Non-Participants for the hour.
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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
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Transmission Customer must either take this service from the 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 of the total increased hourly operating costs is collected
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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 or Internal Point-to-Point 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. The charge for Internal
Point-to-Point Service is specified in Schedule 10.
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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 or Internal Point-to-Point Service to all Participants
and other entities serving load in the NEPOOL Control Area. The charges for
Regional Network
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Service or Internal Point-to-Point Service are specified in Schedules 9 and 10.
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Original Sheet No. 213
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 NEPOOL 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
NEPOOL Agreement, <section><section>12.5 - 12.8. Participants that are deemed
to carry operating reserve in any hour are entitled to share in distributions
each month from
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the Pool Savings Fund. Prior NEPOOL 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 NEPOOL 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 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).
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The Transmission Service required with respect to Interchange Transactions
will be furnished as part of Regional Network Service or Internal Point-to-
Point 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. The charge for
Internal Point-to-Point Service is determined in accordance with Section 21 of
the Tariff and Schedule 10.
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Original Sheet No. 216
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 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 NEPOOL Agreement, and on terms determined thereafter in accordance with
Sections 14.4, 14.5 and 14.9 of the Agreement.
Under the Prior NEPOOL 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
NEPOOL Agreement, <section><section>12.5 - 12.8. Participants that are deemed
to carry operating reserve in any hour are entitled to share in
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Original Sheet No. 217
distributions each month from the Pool Savings Fund. Prior NEPOOL 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 NEPOOL 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 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).
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The Transmission Service required with respect to Interchange Transactions
will be furnished as part of Regional Network Service or Internal Point-to-
Point 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. The charge for
Internal Point-to-Point Service is determined in accordance with Section 21 of
the Tariff and Schedule 10.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 219
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 NEPOOL Agreement, and
on terms determined thereafter in accordance with Sections 14.4, 14.5 and 14.9
of the Agreement.
Under the Prior NEPOOL 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
NEPOOL Agreement, <section><section>12.5 - 12.8. Participants that are deemed
to carry operating reserve in any hour are entitled to share in
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 220
distributions each month from the Pool Savings Fund. Prior NEPOOL 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 NEPOOL 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 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).
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 221
The Transmission Service required with respect to Interchange Transactions
will be furnished as part of Regional Network Service or Internal Point-to-
Point 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. The charge for
Internal Point-to-Point Service is determined in accordance with Section 21 of
the Tariff and Schedule 10.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 222
SCHEDULE 8
Through or Out Service -
The Pool PTF Rate
(1) 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 the
highest of (a) the Pool PTF Rate or (b)a rate which is derived from the annual
incremental cost, not otherwise borne by the Transmission Customer or a
Generator Owner, of any new facilities or upgrades that would not be required
but for the need to provide the requested service or (c) a rate which is equal
to NEPOOL's opportunity cost (if and when available) capped at the cost of
expansion, as determined for the period of service in accordance with Section
20 of this Tariff. If at any time NEPOOL proposes to charge a rate based on
opportunity cost, it shall first file with the Commission procedures for
computing opportunity cost pricing for all Transmission Customers. The
Transmission Customer shall also be obligated to pay any applicable ancillary
service charges and any congestion or other uplift charge required to be paid
pursuant to Section 24 of this Tariff.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 223
(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 (i) the sum for
all Participants of Annual Transmission Revenue Requirements determined in
accordance with Attachment F DIVIDED BY (ii) the sum of the coincident Monthly
Peaks (as defined in Section 46.1) of all Local Networks, excluding from the
Monthly Peak for each Local Network as applicable the loads at each applicable
Point of Delivery of each Participant or Non-Participant which has elected to
take Internal Point-to-Point Service in lieu of Regional Network Service at one
or more Points of Delivery; PLUS the Long-Term Firm Reserved Capacity amount
for each such Participant or Non-Participant which has elected to take Firm
Internal Point-to-Point Service in lieu of Regional Network Service at one or
more Points of Delivery PLUS the Long-Term Reserved Capacity amount for each
Participant or Non-Participant for Firm Through or Out Service. Revenues
associated with Short-Term Point-to-Point reservations will be credited to the
sum of
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 224
all Participants' Annual Transmission Revenue Requirements referred to
in (i) above.
(3) Discounts: Three principal requirements apply to discounts for Through or
Out Service as follows (1) any offer of a discount made by the Participants
must be announced to all Eligible Customers solely by posting on the OASIS, (2)
any customer-initiated requests for discounts (including requests for use by
one's wholesale merchant or an affiliate's use) must occur solely by posting on
the OASIS, and (3) once a discount is negotiated, details must be immediately
posted on the OASIS. For any discount agreed upon for service on a path, from
Point(s) of Receipt to Point(s) of Delivery, the Participants must offer the
same discounted transmission service rate for the same time period to all
Eligible Customers on all unconstrained transmission paths that go to the same
Point(s) of Delivery on the NEPOOL Transmission System.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 225
SCHEDULE 9
Regional Network Service
(1) A Transmission Customer which serves a Network 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
It shall also be obligated to pay any applicable congestion or other uplift
charge required to be paid pursuant to Section 24 of this Tariff.
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 226
service at December 31, 1996, and the costs associated with new facilities which
are placed in service after December 31, 1996. Costs of new facilities are to
be shared regionally on a per Kilowatt basis in determining the rates of each of
the Participants with a Local Network, unless otherwise allocated to a
particular entity pursuant to this Tariff.
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 initially 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 227
equal to the Pool RNS Rate after the end of the transitional 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 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 228
for Year Eleven and thereafter. 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 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. 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 229
(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 for
the twelve months of the calendar year on which the rate is based of the sum of
the coincident Monthly Peaks for the Local Network, as adjusted each month for
losses, excluding from the Monthly Peak the load at each applicable Point of
Delivery of each Participant or Non-Participant which has elected to take
Internal Point-to-Point Service in lieu of Regional Network Service at one or
more Points of Delivery; PLUS the Long-Term Firm Reserved Capacity amount for
each such Participant or Non-Participant which has elected to take Firm
Internal Point-to-Point Service in lieu of Regional Network Service at one or
more Points of Delivery.
(6) The pre-1997 Pool PTF Rate shall be determined in accordance with the
following formula:
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 230
R = ATRR
----
ARNL
and the post-1996 Pool PTF Rate shall be determined in accordance with the
following formula:
R' = ATRR'
----
ARNL
in which
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.
ARNL = the average for the twelve months of the calendar year on which
the rate is based of the sum of the coincident Monthly Peaks for
all Local Networks, as adjusted each month for NEPOOL losses,
excluding from the Monthly Peak for each Local Network as
applicable the load at each applicable Point of Delivery of each
Participant or Non-Participant which has elected to take Internal
Point-to-Point Service in lieu of Regional Network Service at one
or more Points of Delivery; PLUS the Long-Term Firm Reserved
Capacity amount for each such Participant
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 231
or Non-Participant which has elected to take Firm Internal
Point-to-Point Service in lieu of Regional Network Service at one
or more Points of Delivery PLUS the Long-Term Reserved Capacity
amount for each Participant or Non-Participant for Firm Through or
Out Service.
(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 Restated Open Access Transmission Tariff
Original Sheet No. 232
SCHEDULE 10
Internal Point-to-Point Service
(1) A Transmission Customer shall pay to NEPOOL for firm or non-firm
Internal Point-to-Point Service reserved for it in accordance with Section 19
of the Tariff a charge per Kilowatt, as determined for the period of the
service in accordance with Section 21 of this Tariff, equal to the Internal
Point-to-Point Service Rate; provided if either or both (i) a rate which is
derived from the annual incremental cost not otherwise borne by the
Transmission Customer or a Generator Owner, of any new facilities or upgrades
that would not be required but for the need to provide the requested service or
(ii) a rate which is equal to NEPOOL's opportunity cost (if and when available)
capped at the cost of expansion, is greater than the Pool PTF Rate the charge
shall be the higher of such amounts; provided further that no such charge shall
be payable with respect to the use of Internal Point-to-Point Service to effect
a delivery to the NEPOOL power exchange in an Interchange Transaction. If at
any time NEPOOL proposes to charge a rate based on opportunity cost, it shall
first file with the Commission procedures for computing opportunity cost
pricing for all Transmission Customers. The Customer shall also be
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 233
obligated to pay any applicable ancillary service charge and any applicable
congestion or other uplift charge required to be paid pursuant to Section 24 of
this Tariff.
(2) Discounts: Three principal requirements apply to discounts for
Internal Point-to-Point Service as follows (1) any offer of a discount made by
the Participants must be announced to all Eligible Customers solely by posting
on the OASIS, (2) any customer-initiated requests for discounts (including
requests for use by one's wholesale merchant or an affiliate's use) must occur
solely by posting on the OASIS, and (3) once a discount is negotiated, details
must be immediately posted on the OASIS. For any discount agreed upon for
service on a path, from Point(s) of Receipt to Point(s) of Delivery, the
Participants must offer the same discounted transmission service rate for the
same time period to all Eligible Customers on all unconstrained transmission
paths that go to the same Point(s) of Delivery on the NEPOOL Transmission
System.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 234
SCHEDULE 11
Additions to or Upgrades of PTF
If any of the studies referred to in Sections 33, 44 or 49 of the Tariff
indicates that PTF upgrades are necessary to provide the requested service, or
in connection with a new or materially changed generating unit, responsibility
for the costs of the PTF upgrades shall, where necessary, be determined by the
Regional Transmission Planning Committee before construction is commenced,
subject to the following limitations:
(i) If the construction of a PTF or upgrade is required in connection with a
new generating unit or materially changed generating unit, one-half of the
Shared Amount(as defined below) of the capital cost of the PTF upgrade
shall be included in Annual Transmission Revenue Requirements under
Attachment F, and the Generator Owner shall be obligated to pay the other
half of the Shared Amount of the capital cost of the PTF upgrade and all of
the capital cost in excess of the Shared Amount, and any applicable tax
gross-up amounts. Following completion of the construction or
modification, the Generator Owner shall be obligated to pay its pro rata
share of all of the annual costs (including cost of capital,
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 235
federal and state income taxes, O&M and A&G expenses, annual property taxes
and other related costs) which are allocable to the PTF upgrade, pursuant to
the interconnection agreements with the individual Transmission Providers or
their designees which are responsible for the construction or modification,
which agreements may be filed with the Commission by a Transmission
Provider unsigned either on its own or at the request of the Generator
Owner.
(ii)In determining the cost responsibilities for a particular PTF upgrade,
the Regional Transmission Planning Committee, subject to review by the
System Operator, may determine that all or a portion of the proposed
facilities exceed regional system, regulatory or other public
requirements. In such a case, the Regional Transmission Planning
Committee, subject to review by the System Operator, shall determine
the amount of the excess costs of the PTF upgrade which shall be borne
by the entity which is responsible for requiring such excess costs,
and the excess costs shall not be included in the calculation of the
Shared Amount, if any, of the costs of the PTF upgrade and shall be
borne directly by the responsible entity.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 236
The Shared Amount of the capital cost of the PTF upgrade required in connection
with the installation or modification of a generating facility (excluding any
costs which are determined to be excess costs in accordance with paragraph (ii)
above) shall be initially determined as of the time that the System Impact
Study agreement is executed by all parties and the Generator Owner has paid the
cost of the study, (such initial determination to be based on the estimated
cost of the PTF upgrade, subject to later adjustment as set forth below)
subject to truing up the KW element of the following formula upon completion of
the PTF upgrade, and shall be the lesser of (a) the full actual capital cost of
the PTF upgrades (excluding any costs which are determined to be excess costs
in accordance with paragraph (ii) above) or (b) the amount determined in
accordance with the following formula:
P = KW (R)(.50)
-----------
C
in which:
P is the maximum amount to be shared;
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 237
KW in the case of a generating unit, is the actual demonstrated net
capability of the new generating unit or increase in the capacity
of an existing generating unit corrected to 50<circle>F, in
kilowatts. If winter operating conditions are shown in the
System Impact Study and/or application under Section 18.4 of the
Agreement to require additional transmission reinforcements
beyond those reinforcements required for summer operating
conditions, the net capability of the unit will be corrected to
an ambient air temperature of 0<circle>F;
R is the Pool PTF Rate, as in effect on the Compliance Effective
Date; and
C is the weighted average carrying charge factor of all the
Transmission Providers which own PTF, determined, as of the
Compliance Effective Date, in accordance with Attachment F to the
Tariff, i.e., the sum for all Transmission Providers of the
amounts in Attachment F, Section I.A through I.H,
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 238
divided by the sum of PTF Transmission Plant for all Transmission
Providers as defined in Attachment F, Section I.A.1.a.
If the Regional Transmission Planning Committee (RTPC) and the System Operator
at the time of the review of a generation project under Section 18.4 of the
Agreement find that the proposed generation project would result in deferral
for two years or more or cancellation of transmission upgrade investments that
would have been required (subject to criteria proposed by the System Operator
and approved by the RTPC and the Executive Committee with respect to the siting
of generation in the most advantageous location and is only exercised when
there is a significant net benefit to load) BUT FOR the proposed generation
project in an amount that equals or exceeds 75% of the capital equivalent of
the Pool PTF Rate, then the Executive Committee shall have the authority to
vote to permit a deviation from the cost allocation formula in this Schedule 11
that would allow the cap on the Shared Amount to increase to as much as 100% of
the capital equivalent of the Pool PTF Rate.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 239
All payments required hereunder shall be determined initially on an estimated
basis, and then adjusted after the appropriate portion of the construction or
modification costs has been reflected in Tariff rates in the first adjustment
of Tariff rates after the PTF upgrade has been placed in commercial operation.
If a proposal for a new generating unit or a material change to a generating
unit requires the construction of a PTF upgrade to interconnect and/or
accommodate the generator, the Generator Owner requesting such interconnection
may, at the request of the Transmission Provider or its designee responsible
for effecting such construction, be obligated to pay to the Transmission
Provider or its designee constructing the PTF upgrade an amount equal to its
share of the estimated cost of the construction at one time or in monthly or
other periodic installments, including, without limitation, all costs
associated with acquiring land, rights of way easements, purchasing equipment
and materials, installing, constructing, interconnecting, and testing the
facilities; O&M and engineering costs; all related overheads; and any and all
associated taxes and government fees. In addition to, or in lieu of said
payment, the affected Transmission Provider or
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 240
its designee may require the Generator Owner to provide, as security for its
obligation to pay any unfunded balance of the construction costs, and its
obligation to pay the entire construction cost if the new PTF or upgrades are
partly or completely constructed and the Generator Owner then goes out of
business or abandons its project, a letter of credit or other reasonable form of
security acceptable to the Transmission Provider or its designee that will be
responsible for the construction equivalent to the cost of the new facilities or
upgrades and consistent with relevant commercial practices, as established by
the Uniform Commercial Code. As soon as reasonably practical, but in any event
within 180 days after completion of the construction, or as otherwise mutually
agreed, the Transmission Provider or its designee responsible for the
construction will determine the difference, if any, between the estimated cost
already paid by the Generator Owner to the Transmission Provider or its designee
responsible for the construction and its share of the actual cost of the
construction, and will either receive from the Generator Owner, with Interest
(if the sum paid is insufficient) or pay to the Generator Owner, with Interest,
(if the sum paid is surplus) the difference;
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 241
provided that if, at the time such determination is made, items of construction
remain to be completed and/or some construction costs have not been invoiced and
paid, the Transmission Provider or its designee responsible for the construction
shall continue to be entitled to recover from the Generator Owner the Generator
Owner's share of the costs of such remaining items and may retain a reserve to
cover such items. Furthermore, the Transmission Provider shall release any
letter of credit or other security instrument received by the Transmission
Provider, up to the amount allowed to be recovered through the Transmission
Provider's Annual Transmission Revenue Requirement, no later than 60 days after
the later of the reflection of such costs in the Pool rates and the commercial
operation of the generation addition or modification. To the extent PTF
upgrades, or any portion thereof, are completed in a calendar year, Transmission
Providers will use their best efforts to reflect such facilities in their Annual
Transmission Revenue Requirements calculated on the basis of that year. That
portion of the construction costs paid by the Generator Owner may, by mutual
agreement of the Transmission Provider and the Generator Owner, either be
retained by the Transmission Provider, or be refunded to the Generator Owner
upon the Generator Owner executing
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 242
a contract with the Transmission Provider obligating the Generator Owner to pay
the Transmission Provider the ongoing transmission revenue requirement
associated with its share of the PTF construction, including cost of capital,
federal and state income taxes, O&M and A&G costs, annual property taxes and all
other related costs, and providing the Transmission Provider with an irrevocable
letter of credit or other form of security acceptable to the Transmission
Provider. In the event the Generator Owner's portion of the construction costs
is retained by the Transmission Provider or its designee in accordance with the
preceding sentence, the Generator Owner be obligated (i) to pay the federal and
state income taxes required to be paid by the Transmission Provider with respect
to the retained amount, and (ii) to pay annually its percentage of the O&M and
A&G costs, annual property taxes and all other related costs in accordance with
the interconnection agreement; provided that in no event shall the Generator
Owner be obligated to pay any cost more than once. If the Generator Owner for
whatever reason goes out of business, or otherwise abandons its generation
project, and the PTF upgrade has already been partially or completely
constructed, the Generator Owner shall be responsible for all of the
unrecovered ongoing
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 243
costs of the PTF upgrade that would not have been incurred but for the proposed
generation project. Nothing contained herein shall prevent the Transmission
Provider or its designee responsible for the construction and the Generator
Owner from negotiating other methods for providing financial security associated
with the cost of a PTF upgrade to existing PTF deemed acceptable to the
Transmission Provider or other entity.
In any case other than the construction or modification of a PTF upgrade with
respect to a new or modified generating unit, a Transmission Customer shall
also be obligated to pay such costs and to provide such security for its
obligation as may be agreed to under an interconnection or other applicable
agreement with the Transmission Provider or its designee which will effect the
construction or modification.
Subject to the foregoing, the interconnection and support agreements for a PTF
upgrade may specify the basis for continued support of such upgrade 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 244
property, or action to terminate the project before its completion for
whatever reason and any other matters.
Interest payable hereunder shall be calculated in accordance with Section 8.3
of the Tariff.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 245
ATTACHMENT A
Form of Service Agreement for
Through or Out Service or
Internal Point-To-Point 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 [Non-Firm] Transmission Service under
this Tariff.
3.0 If required, the Transmission Customer has provided to the System Operator
an Application deposit in accordance with the provisions of this Tariff.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 246
4.0 Service under this Service Agreement shall commence on the later of (1) the
requested service commencement date, or (2) the date on which construction
or any Direct Assignment Facilities and/or facility additions or 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 such date as is mutually agreed upon by the parties. [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.
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 Restated Open Access Transmission Tariff
Original Sheet No. 247
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.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 248
NEPOOL Participants:
By [System Operator]
By:___________________ __________ _____________
Name Title Date
TRANSMISSION CUSTOMER:
By:___________________ __________ _____________
Name Title Date
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 249
SPECIFICATIONS FOR THROUGH OR OUT SERVICE
OR INTERNAL POINT-TO-POINT 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:_____________________________________
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 250
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 Restated Open Access Transmission Tariff
Original Sheet No. 251
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 expansion charge [Need to define or reference
upgrade costs]:
__________________________________________________
__________________________________________________
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 252
ATTACHMENT B
Form Of Service Agreement For
Regional Network 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 253
4.0 The Transmission Customer agrees to supply information the System Operator
deems 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 PARTICIPANTS:
NEW ENGLAND POWER POOL
---------------------------
ONE SULLIVAN ROAD
---------------------------
HOLYOKE, MA 01040-2841
---------------------------
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 254
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 Restated Open Access Transmission Tariff
Original Sheet No. 255
NEPOOL PARTICIPANTS:
By: [System Operator]
By:______________________ ______________ ___________
Name Title Date
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 256
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;
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 257
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;
o Frequency (Hz) within acceptable levels.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 258
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 Restated Open Access Transmission Tariff
Original Sheet No. 259
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;
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 260
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.
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).
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 261
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 Restated Open Access Transmission Tariff
Original Sheet No. 262
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 263
8. The United Illuminating Company
9. Vermont Electric Power Company and the entities which are grouped with
it as a single Participant.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 264
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)
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 265
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, plus (L) Transmission Related Taxes and Fees Charge.
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
Accumulated Deferred Taxes, plus (f) Transmission Related Loss on
Reacquired Debt, plus (g) Other
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 266
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 (i) the Transmission Provider's capital
leases in the Hydro-Quebec DC facilities (HQ leases), and
(ii) the portion of any facilities, the cost of which is
directly assigned under the Tariff to a Transmission
Customer or a Generator Owner or Interconnection Requester.
(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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 267
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 268
Reserve shall equal the product of General Plant Depreciation
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 269
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.
(h) TRANSMISSION PREPAYMENTS shall equal the Transmission
Provider's balance of prepayments
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 270
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 271
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 Restated Open Access Transmission Tariff
Original Sheet No. 272
(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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 273
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 Restated Open Access Transmission Tariff
Original Sheet No. 274
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 275
(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 Numbers 561 and 565, and any expenses
included in Transmission Support Expense as described in section (J)
which are included in Account Numbers 560-573, multiplied by the PTF
Transmission Plant Allocation Factor described in Section (I)(A)(1)(b)
above.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 276
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 but excluding support
payments to Transmission Providers or their designees pursuant to
Schedule 11 of the Tariff.
J. TRANSMISSION SUPPORT EXPENSE shall equal the expense paid by
Transmission Providers or Network Customers for
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 277
PTF transmission support other than expenses for payments made for
transmission facilities or facility upgrades placed in service on or
after January 1, 1997 where the support obligation is required to be
borne by particular Participants or other entities in accordance with
the Tariff.
K. TRANSMISSION RELATED EXPENSE FROM GENERATORS as may be determined by
the Management Committee.
L. TRANSMISSION RELATED TAXES AND FEES CHARGE shall include any fee or
assessment imposed by any governmental authority on service provided
under this Tariff which is not specifically identified under any other
Section of this Attachment.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 278
ATTACHMENT G: LIST OF EXCEPTED TRANSACTION AGREEMENTS
Attachment G is a listing of transmission agreements pertaining to certain
point-to-point wheeling transactions across or out of a Local Network. In
accordance with Section 25 of the Tariff, these agreements will continue to be
in effect at the rates and terms thereunder rather than under the Tariff.
Item Effective End Amount Comments
# Provider Receiver Description, Purpose or Service Date Date (MW's) FERC Docket #'s
- ----------------------------------------------------------------------------------------------------------------------------------
1 CMP Unitil PTP firm wheeling of BHE QF's 1/1/87 2/28/03 25 25.0MW since 11/1/91,
dropping to 24.27 MW's on
7/97, decreasing further
later. 2 yr notification
2 BECO Cambridge Firm agreement to transfer energy/capacity 7/1/68 11/1/01 varies
from Canal 1 to Cambridge Electric Light
across BECO system
3 NEP BECO Long term wheeling of L'Energia{1} 7/9/96 3/13/13 65.048 See note #1
4 NEP Braintree Long term wheeling of system power{1} 7/9/96 10/31/04 2 See note #1, option to
extend
5 NEP CES Long term non-firm wheeling of power 7/9/96 life 20 See note #1
from Boott Hydro{1}
6 NEP CES Long term non-firm wheeling of power 7/9/96 10/1/04 1.5 See note #1
from Collins Dam{1}
7 NEP Hingham Long term wheeling of power from 7/9/96 12/31/27 1.446 See note #1
Manchester street{1}
8 NEP Hingham Long term wheeling of power from Bear 7/9/96 11/1/05 5.02 See note #1
Swamp{1}
9 NEP Hull Long term wheeling of power from Refuse 7/9/96 10/31/05 .341 See note #1
Fuels{1}
10 NEP Montaup Long term wheeling of McNeil 7/9/96 life 8 See note #1
Burlington{1}
11 NEP Taunton Long term wheeling of system power{1} 7/9/96 10/31/05 10 See note #1
12 NEP Unitil Long term wheeling power from Ocean 7/9/96 10/31/10 22.5 See note #1, amount
State I & II {1} changes over contract/
seasons
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 279
13 NEP Unitil Long term wheeling of power from Salem 7/9/96 10/31/05 9.8 See note #1, amount
Harbor {1} changes over contract/
seasons
14 NEP Unitil Long term wheeling power from Maine 7/9/96 10/31/05 2
Yankee
15 NU NUSCO Firm PTP Trans. Wheeling Service 9/1/94 2003 40 Madison Electric Works -
ER94-1160-000
16 NU Holyoke Firm PTP Trans. Wheeling Service 7/1/95 2003 4 NYPA Power - ER95-1354-
0000
17 NU CES Firm PTP Trans. Wheeling Service 5/1/85 2013 2 Swift River - Chicopee 1&2
ER-86-85-000/ER86-79-000
18 NU Groton Firm PTP Trans. Wheeling Service 11/1/89 1999 1 Glendale Hydro - ER92-66-
000
19 NU UI/Unitil Firm PTP Trans. Wheeling Service BHS3 to 5/1/90 2010 15 TSA Corridor - ER92-65-000
Unitil
20 NU Groton Firm PTP Trans. Wheeling Service 4/1/92 2010 1 Littleville Power Co-Texon
Hydro
ER92-458-000/ER92-66-000/
ER93-219-000
21 NU Fitchburg Firm PTP Trans. Wheeling Service 1/1/95 2012 3 Harris Hydro - ER94-559-
000/ER95-357-000
22 NU MASS Firm PTP Trans. Wheeling Service{4} 7/31/93 2014 200 ER94-902-000/ER93-219-000
POWER See note #6
23 NU LILCO Firm PTP Trans. Wheeling Service 5/1/94 1997 88 Fitzpatrich - ER94-1201-
000
24 NU Altresco Firm PTP Trans. Wheeling Service{4} 1/1/95 2010 160 ER95-306-000, See note #6
Pittsfield
25 NU MMWEC Firm PTP Trans. Wheeling Service 11/1/95 2003 27 NYPA Power - ER96-201-000
26 NU Pascoag Firm PTP Trans. Wheeling Service 11/1/95 2003 3 NYPA Power - ER96-201-000
27 NU Pontook Firm PTP Trans. Wheeling Service 7/26/85 2001 11 Pontook
28 NU Suncook Firm PTP Trans. Wheeling Service 4/8/96 2021 3 Suncook - ER96-1277-000
29 NU NUSCO Firm PTP Trans. Wheeling Service{2} 10/1/96 2006 100/200 See Note #2, Suffolk
County, NY - ER96-2338-000
30 NU NUSCO Firm PTP Trans. Wheeling Service 12/1/81 2019 variable MMWEC: Stonybrook
ER83-358-000/ER93-219-000
31 NU NUSCO Firm PTP Trans. Wheeling Service 6/1/94 2005 10 Unitil: Norwalk 1&2 -
ER94-1088-0000
32 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/94 2004 15 Fitchburg Gas & Electric -
ER93-417-001
33 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/94 2005 13 Reading Municipal Light -
ER94-1591-000
34 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/93 1998 5 Middleton Municipal Light-
ER93-901-000
35 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/93 1998 2 Georgetown Municipal
Light - ER93-884-000
36 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/93 2004 1 Princeton Municipal Light:
Holyoke Hydro
ER93-915-000
37 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/93 1998 1 VT Public Power Supply -
ER93-913-000
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 280
38 NU NUSCO Firm PTP Trans. Wheeling Service 5/1/94 1999 25 Citizens Utility Co.
ER94-1211-000/EC90-10-007
39 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/94 1998 5 Holyoke Gas & Electric -
ER94-1592-000
40 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/94 2004 20 Danver Electric Dept. -
ER94-1207-000
41 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/94 2004 20 Littleton Electric Light/
Water
ER94-1207-000
42 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/94 2004 10 Mansfield Municipal
Electric
ER94-1207-000
43 NU NUSCO Firm PTP Trans. Wheeling Service 5/1/95 2004 1 Sterling Municipal
Electric
ER95-584-000
44 NU NUSCO Firm PTP Trans. Wheeling Service 6/1/95 2002 3 Princeton Municipal
Electric
ER95-1137-000
45 NU NUSCO Firm PTP Trans. Wheeling Service 8/1/95 1999 2 VT Marble Power Div. -
ER95-1461-000
46 NU NUSCO Firm PTP Trans. Wheeling Service 11/1/95 2002 6 Rowley Municipal Lighting
ER96-160-000
47 NU Littleton Non-Firm PTP Trans. Wheeling Service 10/30/91 n/a 1 Marlboro Hydro Corp/
Minnewawa
48 NU NEP Non-Firm PTP Trans. Wheeling Service 12/6/91 n/a 3 Waste Mgmt of NH/Turnkey
49 NU NEP Non-Firm PTP Trans. Wheeling Service 11/1/93 1998 40 ER93-914-000/ER95-41-000
50 NU CMEEC Non-Firm PTP Trans. Wheeling Service 6/15/93 variable Liquid Carbonic Ind
Medical Corp
ER93-663-000
51 NU Wallingford Non-Firm PTP Trans. Wheeling Service 7/27/92 variable Ct Steel - ER92-730-000
52 NU CMP Non-Firm PTP Trans. Wheeling Service 11/1/95 1999 50 ER94-48-000
ER95-1635-000/ER95-1557-
000
53 NU CMP Non-Firm PTP Trans. Wheeling Service 11/1/95 1999 150 ER94-48-000/ER95-1635-000
54 NU BECO Non-Firm PTP Trans. Wheeling Service 11/1/95 1997 100 ER94-48-000
ER95-1851-000/ER96-3144-
000
55 NU NHEC Firm Trans. Wheeling Services 3/31/81 n/a 6 Maine Yankee Through PSNH
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 281
56 Montaup MASS Firm wheeling of Mass power 7/31/93 12/31/13 29.3/25 ER93-624-000,
ER97-2574-000
POWER 7/30/08 117/100
57 Montaup Pittsfield Firm wheeling of Pittsfield Generating 9/1/93 12/31/01 29.5 W ER93-623-000,
Company (Altresco) 26 S ER97-2574-000
58 Montaup North Non-firm wheeling of Cleary 9cc to North 11/1/84 LOU 10 ER93-396-000
Attleboro Attleboro
59 Montaup Hudson Non-firm wheeling of Cleary 9cc to Hudson 11/1/86 LOU 5 ER87-362-000
Light & Power
60 Montaup MMWEC Firm wheeling of NYPA power to Braintree, 7/1/85 6/30/01 3.03/2.09 amounts in order of co.'s
Hingham, Hull, Wellesley, Reading, Belmont, 1.11/2.33 listed & through 6/30/97,
Concord 5.84/2.32 can be extended monthly
1.69 6/30/01 thru 10/31/03
ER87-362-000
61 Montaup Braintree Non-firm wheeling of Cleary 9cc to Braintree 11/1/84(1)LOU 10 ER85-390-000/ER87-126-000
11/1/86(2)
62 Montaup Hingham Non-firm wheeling of Cleary 9cc to Hingham 11/1/88 LOU 3 ER93-137-000/ER87-126-000
63 Montaup CES Non-firm backup wheeling agreement 7/31/93 8/31/01
64 Montaup Pascoag Firm transmission service 11/1/81 11/1/97 5, Contract Demand service
agreement
Fire 10/31/98,
9 5.3, ER82-61-000
District 9,00 4.97,2.97
65 Montaup Middle- Firm transmission service 5/1/83 11/1/97 8 Contract Demand service
borough 10/31/99 6 agreement
ER83-485-000
66 UI NU Unit firm exchange of capacity, NU gas turbine 5/1/93 12/31/99 2.4:1 can be extended & requires
for UI base fossil notice of termination
Only BHS3 share - 25 MW's 120to50
67 PASNY UI Firm Niagara & St. Lawrence Hydro power 3/1/90 6/30/01
project contract
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 282
68 BECO Altresco Firm wheeling power contract 9/1/93 12/31/11 29 ER93-786-000,ER97-2500-000
69 BECO MMWEC Wheeling contract from PASNY for Braintree 10/31/03 18
Hingham, Hull, Reading, Belmont, Concord total
Wellesley
70 CVPS Unitil Firm power & wheeling of Vermont Yankee 1991 2001 25 with CVPS termination
Bundled T & G right at 11/98
71 MPSNBP CMP Firm delivery of Beaver-Ashland NELP #2 1/1/93 12/31/16 34 See Note #3
MEPCO output from MPS to CMP{3}
72 MPS/ CMP Firm transmission of capacity/energy from 10/26/94 4/30/2000 26 amount varies with Houlton
Avec in excess of Houlton Water Req. for load, See Note #3
CMP native load{3}
73 CMP HWC Firm power sales agreement for requirements 1/1/96 12/31/05 11-15 See Note #3 & #4
from CMP to Houlton Water Co.{3}
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 283
ATTACHMENT G-1: LIST OF EXCEPTED AGREEMENTS
Attachment G-1 is a listing of comprehensive network service agreements. In
accordance with Section 25 of the Tariff, these agreements are to continue in
effect and transmission service for the transactions covered by such agreements
will continue to be provided at the rates and terms in effect thereunder rather
than under the Tariff. Further, service for the transactions covered by such
agreements shall continue to be excepted for their respective terms from the
requirement to pay a Local Network Service charge.
Item Parties to the Description, Purpose Effective End Amount Comments
# Agreement or Service Date Date (MW's) FERC Docket #'s
- ----------------------------------------------------------------------------------------------------------------------------------
1 WMECO/NEP Service to French King/Shelburne 3/15/94 2 yr notice varies Transmission Service Agreement
2 WMECO/NEP Service to SBNGB 2/23/93 2 yr notice varies Transmission Service Agreement
3 Cambridge/BECO Support Agreements 1/1/75 open n/a Rights in perpetuity
4 UI/NU Six UI Substations Agreement 8/24/93 10/31/98 varies
5 CMP/MEW/NU Firm Transmission of Capacity/Energy 5/16/94 12/31/03 varies 1yr Notification, Can be
to serve Madison extended to 12/31/08
6 CMEEC/NU Comprehensive Transmission Service 11/29/90 1/1/09 n/a ER91-209-000, ER93-297-000
Agreement
7 Chicopee/NU Comprehensive Transmission Service 11/1/95 10/31/09 n/a ER85-689-000, ER93-219-000
Agreement
8 South Hadley/NU Comprehensive Transmission Service 11/1/95 7/1/10 n/a EC90-10-000, ER85-689-000,
Agreement ER720-000
9 Westfield/NU Comprehensive Transmission Service 1/1/95 7/1/10 n/a EC90-10-000
Agreement
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 284
10 Unitil/NU Comprehensive Transmission Service 11/1/92 n/a n/a EL92-42-000
Agreement
11 CMP/NU Firm Border Line Agreement for Bolt 12/15/81 open 35-40 Amount varies, 2yr Notification
Hill Substation
12 All VT Utilities Velco 1991 Transmission Agreement 1991 n/a Transmission Service Agreement
13 CMP/Fox Island Firm Transmission Assoc. with 1/1/94 12/31/98 varies Can be extended to 12/31/03
Bundled Requirements Contract
14 CMP/Kennebunk Firm Transmission Assoc. with 1/1/94 12/31/98 varies Can be extended to 12/31/03
Bundled Requirements Contract
15 GMP/CVPS Firm Network support with outflow- 10/19/93 10/19/08 varies Transmission Interconnection
Interconnection agreement Agreement
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 285
ATTACHMENT G-2: LIST OF CERTAIN ARRANGEMENTS
OVER EXTERNAL TIES
Attachment G-2 is a listing of agreements which relates to the use of the tie
lines to New York.
Item Effective End Amount Comments
# Provider Receiver Description, Purpose of Service Date Date (MW's) FERC Docket #'s
- ----------------------------------------------------------------------------------------------------------------------------------
1 VT Electric VT Public To import NYPA power 03/01/90 10/2003 14 MW
Power Co. Systems
2 VT Electric VT Public To import power from New York 02/16/95 10/2003 5 MW S
Power Co. Power Supply State Electric & Gas Company 7 MW W
Authority (NYSE&G)
(VPPSA)
3 VT Electric VPPSA To import power from Niagara 11/01/93 10/98 9 MW
Power Co. Mohawk
4 VT Electric City of To import power from NYSE&G - 05/01/98 12/2009 10 MW
Power Co. Burlington signed 04/01/96
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 286
Notes to Attachments G, G-1 and G-2
1. NEP's long-term Point-to-Point transmission services will be grandfathered
at a fixed rate of $17.00/kW-yr. Distribution, transformation, and
metering surcharges when applicable, will be subject to NEP's applicable
point-to-point tariffs.
2. See FERC Contract for specific details of agreement. In general, 100MW's
until transmission upgrades are complete. This item is still under review
and is subject to further review dependent upon outcome of Congestion
Pricing.
3. Excepted status applies to transmission by CMP. Transmission by others
(MEPCO, NBP, MPS) remains under the rates, terms and conditions of
applicable agreements.
4. This Transmission Service Agreement is governed in part by a memorandum of
understanding, filed 6/13/97 in Docket nos. EC90-10-007, ER93-294-000,
ER95-1686-000, ER96-496-000, OA97-237-000, and ER97-1079-000.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 287
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 Transmission
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 288
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 Restated Open Access Transmission Tariff
Original Sheet No. 289
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 Restated Open Access Transmission Tariff
Original Sheet No. 290
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 Restated Open Access Transmission Tariff
Original Sheet No. 291
- 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 292
- 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
access pulse recorders (RAPR). All equipment
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 293
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 294
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 may discontinue transmission service
until the condition has been corrected. Unless the system operators
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 295
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 296
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 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,
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 297
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,
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 298
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.
The Transmission Provider shall have the right, at the Transmission
Customer's expense, to monitor the factory acceptance test, the field
acceptance test,
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 299
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 300
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 voltage at the Point(s) of Receipt
consistent with the range of voltage scheduled by the System Operator.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 301
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 302
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).
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 303
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 304
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 Restated Open Access Transmission Tariff
Original Sheet No. 305
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 306
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.
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 Restated Open Access Transmission Tariff
Original Sheet No. 307
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 308
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 Restated Open Access Transmission Tariff
Original Sheet No. 309
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 Restated Open Access Transmission Tariff
Original Sheet No. 310
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 311
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 required by Good Utility Practice and shall be
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 312
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 313
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 Designated
Agent, all of which will be billed by the Transmission provider to the
Transmission Customer in accordance with Paragraph 6 of this Agreement.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 314
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 315
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 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 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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 316
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 317
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 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 318
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 319
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 Restated Open Access Transmission Tariff
Original Sheet No. 320
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 321
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 Restated Open Access Transmission Tariff
Original Sheet No. 322
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 323
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 Restated Open Access Transmission Tariff
Original Sheet No. 324
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 325
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 Restated Open Access Transmission Tariff
Original Sheet No. 326
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
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.
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 327
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 Restated Open Access Transmission Tariff
Original Sheet No. 328
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 329
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 approval under Section 18.4 of the
Restated NEPOOL Agreement, 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 330
Provider's or its Designated Agent's 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 331
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 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 that prepaid, the Transmission Provider will
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 332
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 333
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 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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 334
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
NEPOOL Restated Open Access Transmission Tariff
Original Sheet No. 335
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:_____________________