Exhibit 10.01
MID-CONTINENT AREA POWER POOL AGREEMENT
PREAMBLE
THIS AGREEMENT, made and entered into as of the 31st day of MARCH, 1972,
by and between the signatories hereto, herein referred to individually as a
"Party" or collectively as "Parties" and with the Parties further herein
referred to as "Participants" and "Associate Participants" as defined in
Article IV, as amended thereafter including additional signatories since 1972.
WITNESSETH
0.01 WHEREAS the Parties are engaged in the electric utility business;
and
0.02 WHEREAS the systems of the Parties are interconnected by
transmission facilities and are operated in synchronism pursuant to a number
of power pooling interconnection agreements; and
0.03 WHEREAS an extensive network of high voltage transmission
facilities has been developed by the interconnection of such transmission
facilities between the systems of the Parties; and
0.04 WHEREAS the Parties desire to continue to participate in a
regional power pool coextensive with such interconnected transmission
facilities to further enhance the reliability and other benefits of
interconnected operations and to provide further opportunities to coordinate
the installation and operation of generation and transmission facilities on
the respective systems of the Parties; and
0.05 WHEREAS all the present Parties that were signatory to the Mid-
Continent Area Reliability Coordination Agreement (MARCA) are also
Participants of the Mid-Continent Area Power Pool; and
0.06 WHEREAS the Parties that are members of MARCA have dissolved that
Agreement and have included the necessary functions from MARCA in the Mid-
Continent Area Power Pool Agreement;
NOW, THEREFORE, the Parties agree to enter into this Agreement for the
operation of the Mid-Continent Area Power Pool, hereinafter call "MAPP," in
accordance herewith.
ARTICLE I
OBJECTIVES
1.01 The objective of this Agreement is to provide reliable and
economical electric service to the customers of each of the Parties consistent
with reasonable utilization of natural resources and effect on the
environment. In order to accomplish such purposes, the Parties shall endeavor
to coordinate the installation and operation of generation and transmission
facilities. However, each Party has the right and obligation, regardless of
size or type of organization, to own or otherwise provide the facilities
required to provide its electric service requirements. Each and all of the
provisions of this Agreement are considered reasonably necessary in order to
furnish a basis for the Parties reaching an agreement to accomplish these
objectives.
ARTICLE II
TERM OF AGREEMENT
2.01 This Agreement shall become effective on the first of the month
next following sixty (60) days after acceptance for filing of this Agreement
by the Federal Energy Regulatory Commission and shall not become effective if
such acceptance is not received within 180 days of the execution of this
Agreement.
2.02 This Agreement and amendments thereto shall be of no force or
effect for a Participant which is a borrower from the Rural Electrification
Administration and which requires Rural Electrification Administration
approval thereof unless such approval is obtained within 180 days of the date
of execution thereof by such borrower.
2.03 Any Participant may terminate its participation in this Agreement
by four years written notice to the other Parties hereto. Any Associate
Participant may terminate its participation in this Agreement by ninety (90)
days written notice to the other Parties hereto.
2.04 In the event a Participant fails to perform its obligations
pursuant to this Agreement, the Management Committee shall give written notice
to such Participant specifying such failure to perform and establishing such
reasonable period as such Participant shall have to fulfill its obligations
pursuant to this Agreement. In accordance with such notice, the Management
Committee shall review the performance of such Participant and if the failure
to perform its obligation is continuing, the Management Committee may
thereupon terminate such Participant's participation. This provision shall
not limit the right of any other Participant to enforce the rights and
obligations established pursuant to this Agreement.
2.05 If any of the transmission facilities of a terminating Participant
are required for the continuing stability and reliability of the
interconnected systems of the remaining Participants, such terminating
Participant as to the affected facilities shall continue to be subject to the
requirements relating to stability and reliability which are in effect at the
time of termination. This obligation shall continue only for as long as the
affected facilities continue to be interconnected, directly or indirectly,
with the system of any continuing Participant, but for no longer a period than
the remaining Participants may reasonably and with due diligence require to
permit the establishment of alternative arrangements for stability and
reliability, but for no longer than four years from the date of notice issued
pursuant to Paragraph 2.03 or from the date of termination by the Management
Committee pursuant to Paragraph 2.04.
2.06 Any Participant terminated as provided in Paragraph 2.04 shall
continue to fulfill its obligations pursuant to any power transaction under
the Service Schedules until the completion of such power transaction.
2.07 Any terminated or terminating Participant will continue, or enter
into, an agreement contemplated by Article XV on such terms and conditions and
for such annual payment as shall be established between the Management
Committee and the Contractor. The annual payment shall be such share of the
total payment for services provided by the Contractor reasonably related to
the continuing obligation of the terminated or terminating Participant and
shall include for a period not exceeding ten (10) years any unsatisfied
portion of any payment measured by investment in facilities or equipment
committed by such Contractor to provide services from the Coordination Center
when such commitment was made and the measure of payment established between
the Management Committee and the Contractor prior to notice of default or
termination.
ARTICLE III
DEFINITIONS
For the purposes of this Agreement and of the Service Schedules which
are a part hereof, the following definitions shall apply:
3.01 Firm Energy shall mean energy intended to be supplied at all
times.
3.02 System Demand of a Party shall mean that number of kilowatts which
is equal to the kilowatt-hours required in any clock hour, attributable to
energy required by such Party during such hour for supply of Firm Energy to
the Party's consumers, including system losses, and also including any
transmission losses occurring on other systems supplied by such party for
transmission of such Firm Energy, but excluding generating station uses,
excluding transmission losses supplied by another system, and excluding
Interruptible Load Replacement Energy as provided for in Service Schedule "L."
3.03 Annual System Demand of a Party shall mean the highest System
Demand of such Party occurring during the 12-month period ending with the
current month.
3.04 Certified Interruptible Demand shall mean the quantity of
kilowatts which is equal to the kilowatt-hours in any clock hour that can be
removed from a Party's system under control of the Party. Such quantities
shall be certified by the Party to the Engineering Committee for each month
according to requirements the Engineering Committee may establish.
3.05 Net Generating Capability of a Participant for any month shall
mean that amount of kilowatts, less station use, that all the generating
facilities of such Participant could normally supply simultaneously to its
system and the interconnected systems of the Participants at the time of such
Participant's maximum System Demand for such month under such conditions as
may be established by the Engineering Committee. The capability of the
generating units of a Participant which are temporarily out of service for
maintenance or repair shall be included in the Net Generating Capability of
such Participant.
3.06 Accredited Capability of a Participant for any month shall mean
(a) the Net Generating Capability of such Participant, plus (b) the value in
kilowatts assigned to such Participant's purchases under Service Schedules
"A," "B," "H," "I," "J," and "K," hereof, and to commitments for power from
electric suppliers under separate contracts now existing or hereafter created,
and minus (c) the value in kilowatts assigned to any commitment of such
Participant to deliver power to another Participant under Service Schedules
"A," "B," "H," "I," "J," and "K," hereof, or to any electric supplier or
suppliers pursuant to any valid order or under separate contract or contracts
now existing or hereafter created. The Accredited Capability of such
Participant will be determined and assigned by the Engineering Committee in
accordance with the provisions of Paragraph 16.03 hereof.
3.07 Available Accredited Capability of a Participant shall mean its
Accredited Capability adjusted for generating capacity out of service for
maintenance or repair.
3.08 Reserve Capacity of a Participant for any month shall mean the
excess in kilowatts of each Participant's Accredited Capability above such
Participant's maximum System Demand for such month.
3.09 Reserve Capacity Obligation of a Participant shall be the capacity
which that Participant is obligated to reserve and use for the purpose of
maintaining continuity of service.
3.10 Spinning Reserve shall mean the amount of unloaded generating
capability of a Participant connected to and synchronized with the
interconnected system of the Participants and ready to take load. Spinning
Reserve allocation to any generator shall not exceed the amount of generation
increase that can be realized in ten (10) minutes.
3.11 Non-Spinning Reserve shall mean all unloaded generating capability
not meeting the Spinning Reserve criteria (Paragraph 3.10) that can be made
fully effective in ten (10) minutes.
3.12 Operating Reserve shall mean the sum of Spinning and Non-Spinning
Reserve.
3.13 Operating Reserve Obligation shall mean that amount of Spinning
Reserve and Non-Spinning Reserve which a Participant is obligated under the
terms of this Agreement to provide for the purpose of maintaining continuity
of service.
3.14 Total Operating Reserve Obligation shall be that amount of
Spinning Reserve and Non-Spinning Reserve of the Participants collectively
required to maintain continuity of service.
3.15 An Emergency Outage shall mean any unanticipated, unscheduled
outage of generating or transmission facilities; however, such outage
classification shall not exceed a period of six hours.
3.16 A Scheduled Outage shall mean any outage of generating or
transmission facilities which is scheduled in advance for maintenance and
shall include the remainder of an Emergency Outage which is rescheduled as a
Scheduled Outage. Such rescheduling shall be required within six hours of the
initiation of the Emergency Outage.
3.17 Participation Power shall mean power and associated energy which
is sold or purchased by Participants as provided for in Service Schedule "A."
3.18 Seasonal Participation Power shall mean power and associated
energy which is sold or purchased by Participants as provided for in Service
Schedule "B."
3.19 System Participation Power shall mean power and associated energy
which is sold or purchased by Participants as provided for in Service Schedule
"K."
3.20 Peaking Power shall mean power and associated energy which is sold
or purchased by Participants as provided for in Service Schedule "H."
3.21 Short Term Power shall mean power and associated energy which is
sold or purchased by the Participants and intended to be available at all
times during the period covered by the commitment as provided for in Service
Schedule "I."
3.22 Emergency Energy shall mean energy which is supplied under Service
Schedule "C" of this Agreement by any Participant to any other Participant
during and as required by an Emergency Outage on such other Participant's
system which is not supplied under another provision of this Agreement.
3.23 Scheduled Outage Energy shall mean energy which is supplied under
Service Schedule "C" of this Agreement by any Participant to any other
Participant as a result of a Scheduled Outage which is not supplied under
another provision of this Agreement.
3.24 Economy Energy shall mean energy which one Participant may deliver
under Service Schedule "E" to another Participant for the purpose of replacing
more expensive energy.
3.25 Interruptible Load Replacement Energy shall mean energy which is
supplied under Service Schedule "L" of this Agreement by any Participant to
another Participant for the purpose of serving interruptible load.
3.26 Operational Control Energy shall mean energy which is sold or
purchased by the Participants to improve electric system control and
reliability as provided for in Service Schedule "G."
3.27 General Purpose Energy shall mean energy which is supplied under
Service Schedule "M" by any Participant to any other Participant to enhance
economic system operation.
3.28 Average Production Cost per kilowatt-hour of a generating unit for
a month shall be:
a. The total cost of all fuel consumed by the unit in such
month divided by the net kilowatt-hours produced by the
unit in such month, plus
b. An amount, established by the Operating Committee after
annual review, which shall represent the average monthly
production cost, other than fuel, of the unit, plus
c. An amount, established by the Operating Committee, which
shall represent the cost per kilowatt-hour of incremental
losses on the supplying Participant's system and on any
other system or systems of electric suppliers not
Participants hereto incurred in delivering power and energy
hereunder.
3.29 Incremental Cost of a supplying Participant to supply energy to
another Participant shall be:
a. The cost of the fuel, operating labor and maintenance
required to generate the energy necessary to supply (1) the
scheduled delivery to the receiving Participant's system,
plus (2) the incremental losses incurred on the supplying
Participant's system, plus (3) the energy supplied to any
intervening system or systems as compensation for losses.
b. The cost of starting and operating any generating units
which must be started as a result of supplying such energy.
c. The supplying Participant's cost of purchased energy if the
purchase is made as a result of supplying such energy. The
incremental cost per kilowatt-hour for any particular
transaction shall be the total of such costs divided by the
kilowatt-hours scheduled for delivery to the receiving
Participant either directly by the supplying Participant or
through an intervening system or systems.
3.30 Decremental Cost of a receiving Participant for avoiding the
operation of generating facilities through the purchase of energy from another
Participant shall be:
a. The cost of the fuel, operating labor and maintenance which
such Participant avoided using by means of such purchase.
b. The cost of starting and operating of a generating unit or
units which such Participant avoided by means of such
purchase.
The decremental cost per kilowatt-hour shall be the total of such costs
divided by the number of kilowatt-hours scheduled for delivery to the
receiving Participant either directly by the supplying Participant or through
an intervening system or systems.
3.31 Latest Base Load Unit shall mean a single turbine generator unit
declared by the Participant to be either its most recent wholly owned or
leased and controlled capacity addition, or its most recent wholly owned or
leased and controlled share of a jointly owned unit.
3.32 Transmission Service is the transfer of electricity by a
Participant over its transmission system for another Participant, pursuant to
Service Schedule "F."
3.33 Contractor shall be MAPPCOR, a Minnesota non-profit corporation,
or other such entity as may be selected by the Management Committee pursuant
to Paragraph 15.01 of this Agreement.
3.34 Coordination Transactions are transactions between electric
utility systems for the purpose of achieving short-term cost savings,
providing assistance in emergency situations, or coordinating operating
procedures and maintenance schedules.
3.35 Control Area shall mean a system capable of regulating its
generation in order to maintain its interchange schedule with other systems
and contribute its frequency bias obligation to the interconnected system.
A system shall qualify as a Control Area by meeting the criteria for control
areas established by the North American Electric Reliability Council and by
being recognized by the North American Electric Reliability Council as a
control area.
ARTICLE IV
PARTICIPANTS AND ASSOCIATE PARTICIPANTS
4.01 Any entity engaged in the electric utility business:
a. Which owns or leases and controls the operation of one or
more generating units, and which regularly operates such
unit or units to meet all or part of its system load; and
b. Whose system is normally operated directly interconnected
with one or more Participants at a voltage level and
interconnection capacity so as to enable it to meet its
obligations under this Agreement or enters into contractual
arrangements to have its system so interconnected; and
c. Which operates or participates in the operation of a
twenty-four hour dispatch center with a terminal on the
MAPP communication network connecting the Participants or
enters into contractual arrangements for such service; and
d. Which maintains during each month Accredited Capability in
an amount equal to or greater than its maximum System
Demand for such month plus Participant's Reserve Capacity
Obligation as defined and determined pursuant to the terms
of this Agreement;
may become a Party to this Agreement as a Participant.
4.02 Electric utilities which meet the qualifications for Participant
membership as set forth in Paragraph 4.01 but elect not to become a
Participant and electric utilities which do not meet the qualifications for
Participant membership as set forth in Paragraph 4.01 may execute this
Agreement as Associate Participants and participate herein as set forth for
Associate Participant.
ARTICLE V
PARTICIPATION IN NORTH-AMERICAN ELECTRIC
RELIABILITY COUNCIL (NERC)
5.01 The North-American Electric Reliability Council which was
incorporated on October 15, 1975, has nine member regions, one of which is
MARCA. Each region is responsible to appoint two members to the NERC Board
of Trustees and other representatives to Engineering and Operating Committees
and working groups as established by the Board of Trustees. Since MARCA has
been terminated and MAPP has assumed the reliability functions of MARCA, MAPP
shall assume the previous MARCA membership in NERC and will participate in
NERC activities as required to adequately represent the MAPP membership.
Representatives to the NERC Board of Trustees and other NERC committees shall
be appointed by the MAPP Management Committee. Expenses of those
representatives while representing MAPP at NERC functions shall be reimbursed
from funds provided by the MAPP Coordination Center and allocation procedure.
ARTICLE VI
RELATION TO OTHER AGREEMENTS AND OBLIGATIONS
6.01 Each Party represents that there are no conditions in such Party's
existing agreements, including financing agreements, which will preclude such
Party from performance of all obligations hereunder; and further, each Party
agrees not to enter into an agreement which will preclude performance
hereunder. The failure by any Party to get approval under any financing
agreement for entering into a contract, or amending or terminating any
existing agreement, shall not excuse performance hereunder.
6.02 The execution of this Agreement shall not impair, amend, or change
any previous contracts or agreements and such contracts and agreements shall
continue, including all rates, terms and conditions until the expiration of
such contracts and agreements.
ARTICLE VII
COMMITTEE ORGANIZATION
7.01 The committee organization under this Agreement shall include a
Management Committee, Executive Committee, Engineering Committee, Operating
Committee, Design Review Committee, Environmental Committee, Area Relations
Committee and such other committees as may be established by the Management
Committee from time to time.
7.02 The expenses of each committee member shall be borne by the
represented Party.
7.03 Committee expenses, other than those described in Paragraphs 5.01
and 7.02 shall be shared in a manner agreed to by the affected Parties.
7.04 Minutes of all committee meetings shall be recorded and copies
thereof distributed in accordance with procedures established by the
Management Committee.
ARTICLE VIII
MANAGEMENT COMMITTEE
8.01 The Management Committee shall consist of one representative
selected by each Participant. Each Participant shall designate the person who
shall act as its representative by written notice to the MAPP Secretary
provided under Paragraph 8.04. By similar notice, a Participant may change
its representative on the Management Committee and also designate an alternate
representative to act in the absence of the designated representative. Each
Associate Participant may designate, by written notice to the MAPP Secretary,
a representative as a non-voting member of the Management Committee.
8.02 The Management Committee shall administer this Agreement to
accomplish the objectives of MAPP.
8.03 The Management Committee shall hold an annual meeting during the
last month of the fiscal year at such time and place as the Chairman shall
designate and shall hold meetings at other times at the call of the Chairman
or upon call of three or more Committee members. At least ten (10) days
written notice shall be given to each member of the Management Committee of
any meeting of such Committee. The notice shall state the time and place of
the meeting and shall include an agenda of the items to be considered. Except
by unanimous consent of those present, no action shall be taken on any item
other than those included on the agenda.
8.04 The Management Committee, at its annual meeting, shall elect three
officers who shall serve until the next annual meeting. They shall be a
Chairman and a Vice Chairman elected from the representatives of the
Participants on the Committee, also, a secretary, herein called "MAPP
Secretary," who need not be a member of the Committee. The Chairman shall not
serve for more than two consecutive terms.
8.05 The duties of the Management Committee include but are not
limited to the following:
a. Supervise the development of plans and procedures that will
result in attainment of the objectives of this Agreement.
b. Specify the duties and authority, other than set forth
herein, of the Engineering Committee, the Operating
Committee, the Design Review Committee, the Environmental
Committee, the Area Relations Committee and other
committees which may be established by the Management
Committee.
c. Make such administrative arrangements as may be required
pertaining to matters which are pertinent to this Agreement
but which are not specifically covered herein including the
establishment of a fiscal year.
d. Review and rule on appeals from Executive Committee
decisions filed pursuant to the provisions of Paragraph
9.04.
e. Review and rule on appeals from Engineering and Operating
Committees as provided for in Paragraphs 10.08 and 11.06
respectively.
f. Provide representation to the NERC Board of Trustees and
participate in its functions.
g. Review and approve an annual operating budget for the MAPP
Coordination Center and Committee activities.
h. Establish the Reserve Capacity Obligation of each
Participant.
i. Establish total Operating Reserve Obligation and formula
for the Operating Reserve Obligation of each Participant.
j. Review and approve recommendations of the Design Review
Committee.
8.06 Each Participant on the Management Committee shall be entitled to
the number of votes determined by the following formula:
a. One vote for each 25 megawatts, or fraction thereof, of
Annual System Demand up to 300 megawatts.
b. One vote for each 50 megawatts, or fraction thereof, of
Annual System Demand from 301 to 600 megawatts.
c. One vote for each 100 megawatts, or fraction thereof, of
Annual System Demand over 600 megawatts.
A Participant's Annual System Demand shall be counted only once
in determining voting allocation.
8.07 A majority affirmative vote of the total authorized votes is
required to authorize any action, determination, or recommendation of the
Management Committee. Any such action, determination, or recommendation of
the Management Committee shall be binding on the Parties thirty (30) days
after the vote thereon unless any Participant or Participants who vote against
such action, determination, or recommendation invoke the arbitration provision
set forth in Article XXX.
ARTICLE IX
EXECUTIVE COMMITTEE
9.01 The Executive Committee shall consist of not less than nine voting
members including the Chairman and Vice Chairman of the Management Committee,
a representative from the Western Area Power Administration, a representative
of the MAPP Participant utility allocated the largest portion of the MAPP
Annual Budget and a representative from each of any other MAPP Participant
utilities allocated 20% or more of the MAPP Annual Budget, plus additional
voting members elected by and from the Management Committee representatives.
The other number of voting members of the Executive Committee shall be elected
by and determined by the Management Committee. The Executive Committee shall
be representative of the membership; factors to be considered are size and
type of corporate organization and geographic area covered. Any state or
province in which at least ten percent (10%) of the pool load is located shall
be represented by not less than one Participant representative on the
Executive Committee. The Chairman and Vice Chairman of the Management
Committee shall also be the Chairman and Vice Chairman of the Executive
Committee. The MAPP Secretary and a representative of the Contractor under
Article XV shall be non-voting members of the Executive Committee.
9.02 Between meetings of the Management Committee, the Executive
Committee shall have the duties of the Management Committee except those under
Article XV and Paragraph 8.05 b, d, e, f, g, h, i and j, subject to appeal
pursuant to the provisions of Paragraph 9.04.
9.03 The Executive Committee shall hold an annual meeting within six
months after the annual meeting of the Management Committee at such time and
place as the Chairman shall designate and shall hold other meetings in
accordance with a schedule adopted by the Executive Committee or at the call
of the Chairman or upon call of two or more members of the Executive
Committee. At least ten (10) days written notice shall be given to each
member of the Executive Committee of any meeting of such Committee.
9.04 An affirmative vote of two-thirds of the voting representatives
on the Executive Committee is required to authorize any action, determination
or recommendation of the Executive Committee. Any action, determination or
recommendation adopted by the Executive Committee may be appealed to the
Management Committee by one or more of the Participants; provided that, the
sum of the Annual System Demands of such appealing Participant or Participants
for the immediately preceding fiscal year is at least equal to one percent
(1%) of the sum of the Annual System Demand of all Participants for such
fiscal year. Such appeal shall be made by filing a notice of appeal with the
MAPP Secretary within thirty (30) days after mailing of the written notice
under Paragraph 9.05. The filing of a notice of appeal as aforesaid shall
suspend such action, determination or recommendation pending action thereon
by the Management Committee.
9.05 The MAPP Secretary shall send written notice to each member of the
Management Committee of any action taken by the Executive Committee prior to
the end of the fifth business day following the meeting of the Executive
Committee at which such action was taken.
ARTICLE X
ENGINEERING COMMITTEE
10.01The Engineering Committee shall consist of one representative of
each Participant designated by such Participant's representative on the
Management Committee by written notice to the MAPP Secretary. By similar
notice, a Participant may change its Engineering Committee representative and
also designate an alternate Engineering Committee representative to act in the
absence of the designated representative. Each Associate Participant may
designate, by written notice to the MAPP Secretary, a representative as a non-
voting member of the Engineering Committee.
10.02The Engineering Committee, under the direction of the Management
Committee, shall administer the planning and design reliability functions for
the bulk power supply pursuant to this Agreement.
10.03The Engineering Committee shall hold an annual meeting in the
first quarter of each year and shall hold other meetings at other times upon
call of the Chairman or upon request of three or more Participant members.
At least ten (10) days written notice shall be given to each member of the
Engineering Committee of any meeting of such Committee. The notice shall
state the time and place of the meeting and shall include an agenda of items
to be considered. Except by unanimous consent of those present, no action
shall be taken on any item other than those included on the agenda.
10.04The Engineering Committee, at its annual meeting, shall elect two
officers who shall serve until the next annual meeting. They shall be a
Chairman and Vice Chairman elected from the representatives of the
Participants on the Committee. The Chairman shall not serve for more than two
consecutive terms. A person from the staff of the MAPP Coordination Center
shall serve as its Secretary and shall be a non-voting member.
10.05The duties of the Engineering Committee shall include, but shall
not be limited to the following:
a. Establish and revise as necessary, design reliability
standards for the bulk power supply of MAPP, and coordinate
such standards with regional power coordinating groups.
b. Conduct periodic overall system reliability studies as
required.
c. Recommend revisions to the Reserve Capacity Obligation of
the Participants as periodically required, to the
Management Committee.
d. Establish annually a plan for the ensuing ten (10) years or
longer period covering:
i. The size and type of the generating units to be
installed, and the voltage and capacity of each
transmission facility 115 Kv and above, where such
facilities would have a significant effect upon MAPP
area reliability,
ii. The location of such facilities,
iii. The time when such facilities are to be placed in
operation,
iv. The entity or entities installing such facilities,
and
v. The contracted purchases and sales by Participants.
e. Review on a continuing basis, the load and capability
forecasts which take into account conservation and load
management plans of the Parties as reported by the MAPP
Coordination Center and take the necessary action therewith
in accordance with Article XVI.
f. Coordinate the MAPP bulk power production and transmission
system development with adjoining systems, pools and
regional power coordinating groups.
g. Establish and revise rules relating to the effect of
abnormal conditions on System Demand and Reserve Capacity
Obligation.
h. Establish and revise rules for the determination of
Accredited Capability of the Participants.
i. Cause studies to be made as necessary for administration of
its duties hereunder.
j. Establish procedures for the use of Service Schedules,
including the use of Service Schedule "F" for capacity
transactions.
k. Review and recommend changes to the Service Schedules to
the Management Committee.
l. Recommend to the Management Committee, representation to
the NERC Engineering Committee and participate in its
functions.
m. Prepare and publish schedules of the Transmission Service
schedule charges, in accordance with Service Schedule "F".
10.06The Engineering Committee may establish subcommittees and assign
duties consistent with this Agreement and policies of the Management
Committee.
10.07The Engineering Committee shall recommend to the Management
Committee, planning functions which should be assigned to the MAPP
Coordination Center to improve reliability and economy. Such recommendations
shall be provided to the General Manager, MAPP Coordination Center to
facilitate preparation of budget recommendations.
10.08Any action of the Engineering Committee shall be taken only if
seventy percent (70%) or more of the total authorized votes, as provided in
the formula in Paragraph 8.06, are present at a meeting. Any action approved
by at least ninety percent (90%) of the total authorized votes present shall
become effective immediately. If less than a ninety percent (90%) vote, any
action receiving an affirmative vote of at least two-thirds of the total
authorized votes present shall become effective after thirty (30) days unless
it is appealed to the Management Committee. Within five business days of any
action receiving less than ninety percent (90%) vote by the Engineering
Committee, the Committee Secretary shall give written notice thereof to the
members of the Engineering Committee. Notice of any appeal therefrom shall
be filed with the MAPP Secretary within ten (10) days of mailing of said
notice of action. The submittal to the Management Committee shall include
such alternative proposals as any Participant may request.
ARTICLE XI
OPERATING COMMITTEE
11.01The Operating Committee shall consist of one representative of
each Participant designated by such Participant's representative on the
Management Committee by written notice to the MAPP Secretary. By similar
notice, a Participant may change its Operating Committee representative and
also designate an alternate representative to act in the absence of the
designated representative. Each Associate Participant may designate, by
written notice to the MAPP Secretary, a representative as a non-voting member
of the Operating Committee.
11.02The Operating Committee, under the direction of the Management
Committee, shall be responsible for establishing such practices, rules and
procedures as may be required to coordinate the operations and pool energy
accounting of the bulk power generation and transmission facilities of the
Parties pursuant to this Agreement.
11.03The Operating Committee shall hold an annual meeting in the first
quarter of each year and shall hold other meetings at others times upon call
of the Chairman or upon request of three or more Participant members. At
least ten (10) days written notice shall be given to each member of the
Operating Committee of any meeting of such Committee. The notice shall state
the time and place of the meeting and shall include an agenda of the items
to be considered. Except by unanimous consent of those present, no action
shall be taken on any item other than those included on the agenda.
11.04The Operating Committee, at its annual meeting, shall elect two
officers who shall serve until the next annual meeting. They shall be a
Chairman and Vice Chairman elected from the representatives of the
Participants on the Committee. The Chairman shall not serve for more than two
consecutive terms. A person from the staff of the MAPP Coordination Center
shall serve as its Secretary and shall be a non-voting member.
11.05The duties of the Operating Committee shall include, but shall not
be limited to the following:
a. Coordinate the operation of the bulk power generation and
transmission facilities of the Parties so as to effect
optimum reliability and economy of service.
b. Establish methods, standards, and procedures for the
determination of costs associated with transactions
hereunder.
c. Periodically review the Total Operating Reserve Obligation
and the formula for establishing the Operating Reserve
Obligation of a Participant and make recommendations to the
Management Committee for revisions as required.
d. Collect and analyze operating data pertinent to the
interconnected operation of the systems of the Participants
and arrange for conducting such transmission network
studies as may be necessary in the performance of its
duties hereunder.
e. Review and approve the coordinated maintenance schedules of
the Participants as provided by the MAPP Coordination
Center to assure at all times satisfying the Total
Operating Reserve Obligation.
f. Establish procedures for the use of the Service Schedules,
including the use of Service Schedule "F" for energy
transactions.
g. Review and recommend changes to the Service Schedules to
the Management Committee.
h. Determine and periodically review the procedures to be
followed by the Participants in restoring the Total
Operating Reserve Obligation in the event of a large
generator failure or other comparable contingency.
i. Coordinate the periods and methods of reporting scheduled
and actual power and energy flows.
j. Establish methods and procedures for accounting and billing
of bulk power and energy interchanges and Transmission
Services hereunder.
k. Establish operating reliability standards, criteria and
rules relating to protective equipment, switching, voltage
control, system control performance, load shedding,
emergency and restoration procedures and the operation and
maintenance of generation and transmission facilities of
the Participants necessary to assure the reliable operation
of the MAPP systems.
l. Establish procedures and practices for coordinating the
power pool operation activities of MAPP with adjoining
systems, pools and other regional power coordination
agencies.
m. Recommend to the Management Committee representation to the
NERC Operating Committee and participate in its functions.
n. Recommend to the Management Committee the power pool
operating functions which should be conducted at the MAPP
Coordination Center to improve reliability and economy.
Such recommendations shall be provided to the General
Manager, MAPP Coordination Center to facilitate preparation
of budget recommendations.
11.06Any action of the Operating Committee shall be taken only if
seventy percent (70%) or more of the total authorized votes, as provided in
the formula in Paragraph 8.06, are present at a meeting. Any action approved
by at least ninety percent (90%) of the total authorized votes present shall
become effective immediately. If less than a ninety percent (90%) vote, any
action receiving an affirmative vote of at least two-thirds of the total
authorized votes present shall become effective after thirty (30) days unless
it is appealed to the Management Committee. Within five business days of any
action receiving less than ninety percent (90%) vote by the Operating
Committee, the Committee Secretary shall give written notice thereof to the
members of the Operating Committee. Notice of any appeal therefrom shall be
filed with the MAPP Secretary within ten (10) days of mailing of said notice
of action. The submittal to the Management Committee shall include such
alternative proposals as any Participant may request.
ARTICLE XII
DESIGN REVIEW COMMITTEE
12.01The Design Review Committee shall consist of members representing
various Participants appointed by the Management Committee, one of whom shall
be appointed Chairman by the Management Committee. Members appointed should
have experience in system operation and analysis and be representative of the
geographic area covered. A person from the staff of the MAPP Coordination
Center shall serve as its Secretary and shall be a non-voting member.
12.02The Committee shall meet on call of its Chairman as required to
carry out its duties. Committee recommendations to the Management Committee
as well as other committee action taken, shall be adopted by two-thirds vote
of its members. Minority recommendations may be submitted.
12.03The Design Review Committee, with assistance of the staff of the
MAPP Coordination Center and in conjunction with each Participant, shall
review and evaluate such Participant's planning for generation and
transmission facilities for conformance to reliability design standards
established by the Engineering Committee and report their findings to the
Management Committee. Any operating restrictions necessary to make a
Participant's planned facilities operate within MAPP reliability design
standards will be subject to approval of the Design Review Committee.
12.04To enable the Design Review Committee to carry out its tasks, the
Participants shall furnish such studies and data as it shall reasonably
request, including but not limited to, technical studies of system
performance, data on current and projected loads, system equipment
capabilities, capability margins, spinning reserves, relay settings
controlling major facilities, communication facilities, recording facilities
and operating procedures.
ARTICLE XIIA
OPERATING REVIEW COMMITTEE
12A.01 An Operating Review committee is created which, with assistance
of the staff of the Contractor and in conjunction with each Participant, shall
review and evaluate each Participant's operating studies, guides and practices
for compliance with operating reliability standards, criteria, rules, methods,
and procedures established by the Operating Committee and report its findings
to the Management Committee. Any operating restrictions necessary to make a
Participant's facilities operate within MAPP systems operating standards
established by the Operating Committee will be subject to approval by the
Operating Review Committee.
12A.02 The Operating Review Committee shall be composed of nine
members; a Chair and Vice Chair appointed by the Management committee and
seven members appointed by the Chair with the approval of the Management
Committee. All members shall serve for an indefinite term at the pleasure of
the Management Committee. The members of the Operating Review Committee shall
have electric system operating knowledge and experience and shall be
representative of the geographic area served by MAPP. A staff member of the
Contractor shall serve as Secretary of the Operating Review Committee and
shall be a non-voting member thereof.
12A.03 The Operating Review Committee shall meet at the call of the
Chair as required to carry out its duties, or in case of the disability of the
Chair, at the call of the Vice Chair. Recommendations of the Operating Review
Committee to the Management Committee and other actions taken shall be by the
affirmative vote of 2/3rds of all of the members. Minority recommendations
may be submitted to the Management Committee.
12A.04 In cases where the Operating Review Committee determines from
available information that a Participant has failed to comply with established
operating standards, it shall notify the noncompliant Participant in writing.
If the noncompliant Participant does not, within three months after receipt
of the notice, propose a plan acceptable to the Operating Review Committee to
correct the failure, or fails to comply with the correction plan, the
Operating Review Committee shall report such failure to the Management
Committee.
ARTICLE XIII
ENVIRONMENTAL COMMITTEE
13.01The Environmental Committee shall be appointed by the Management
Committee. In selection of such representatives, consideration shall be given
to geographic representation.
13.02The Environmental Committee shall hold an annual meeting in the
first quarter of each year and shall hold other meetings at other times upon
call of the Chairman or upon request of three or more Participant members.
At least ten (10) days written notice shall be given to each member of the
Environmental Committee of any meeting of such Committee. The notice shall
state the time and place of the meeting and shall include an agenda of the
items to be considered.
13.03The Environmental Committee, at its annual meeting, shall elect
two officers who shall serve until the next annual meeting. They shall be a
Chairman and Vice Chairman elected from the representatives of the
Participants on the Committee. The Chairman shall not serve for more than two
consecutive terms. A person from the staff of the MAPP Coordination Center
shall serve as its Secretary and shall be a non-voting member.
13.04Under the direction of the Management Committee, the Environmental
Committee shall keep abreast of national and regional matters relating to air
quality, water quality, land use and other environmental factors. The
Committee shall also carry out other functions and activities as assigned or
approved by the Management Committee. Findings and recommendations shall be
reported to the Management Committee.
13.05The Environmental Liaison Group shall consist of one
representative of each Participant designated by such Participant's
representative on the Management Committee by written notice to the MAPP
Secretary. The Liaison representative shall serve as the liaison between the
Environmental Committee and each Participant for supplying information and
receiving reports. The Environmental Liaison Group shall meet with the
Environmental Committee as directed by the Environmental Committee.
13.06The Environmental Committee may establish subcommittees and task
forces and assign duties as necessary to carry out its assigned functions.
ARTICLE XIV
AREA RELATIONS COMMITTEE
14.01The Area Relations Committee shall consist of one representative
from each Participant designated by such Participant's representative on the
Management Committee by written notice to the MAPP Secretary. By similar
notice, a Participant may change its representative or designate an alternate
to act in place of its representative.
14.02The Area Relations Committee shall hold an annual meeting in the
first quarter of each year and shall hold other meetings at other times upon
call of the Chairman or upon request of three or more Participant members.
At least ten (10) days written notice shall be given to each member of the
Area Relations Committee of any meeting of such Committee. The notice shall
state the time and place of the meeting and shall include an agenda of the
items to be considered. Except by unanimous consent of those present, no
action shall be taken on any item other than those included on the agenda.
14.03The Area Relations Committee, at its annual meeting, shall elect
two officers who shall serve until the next annual meeting. They shall be a
Chairman and Vice Chairman elected from the representatives of the
Participants on the Committee. The Chairman shall not serve for more than two
consecutive terms. A person from the staff of the MAPP Coordination Center
shall serve as its Secretary and shall be a non-voting member.
14.04Under the direction of the Management Committee, the Area
Relations Committee shall be responsible for advising the Parties on preparing
progress reports, public presentations and educational materials relating to
activities of the Parties pursuant to this Agreement and shall carry out other
functions and activities as assigned or approved by the Management Committee.
14.05The Committee shall meet as required on call of the Committee
Chairman or the Management Committee.
ARTICLE XV
MAPP COORDINATION CENTER
15.01The Management Committee shall select a Contractor which will
agree to provide various information and other services, as determined by the
Management Committee, to each of the Participants in order to enhance the
attainment of the goals of this Agreement.
15.02Consistent with policy and guidelines provided by the Management
Committee, the Contractor shall be an independent contractor with each of the
Participants and will be responsible for the establishment and operation of
a MAPP Coordination Center hereinafter called "Center." The Contractor shall
provide facilities, manpower, and administration necessary for such operation.
15.03Each Participant shall enter into an agreement with the Contractor
providing for services as provided in Paragraph 15.01 under the terms and
conditions and such annual payment as may be established from time to time
between the Management Committee and the Contractor.
15.04Each Party shall retain the sole responsibility for the operation
of its system and the utilization of the information which may be provided
from the Center.
15.05Subject to a determination by the Management Committee that such
action can be taken without prejudicing the Contractor's fulfillment of its
obligations to the Participants for services from the Coordination Center, the
Contractor may contract with electrical power suppliers which are not parties
to this Agreement for services from the Contractor or with parties for other
services under conditions approved by the Management Committee.
15.06In consideration of the services provided by the Contractor
inuring to the Associate Participants, the Associate Participants shall make
payment directly to the Contractor for their share of the costs of providing
such services which shall be as follows or as subsequently established by the
Management Committee:
$200 for each fiscal year where the Annual System
Demand for the previous fiscal year is 5,000
kilowatts or less plus $60 for each 5,000 kilowatts
or fraction thereof by which such Annual System
Demand exceeds 5,000 kilowatts, with a maximum of
$10,000.
15.07The Contractor shall be responsible to maintain a staff adequate
to support the services required by the MAPP Committees. Such services shall
include but not be limited to gathering of historical data, maintaining a data
base for planning and operating studies, maintaining official records of the
MAPP Committees, administering certain contracts with other Parties or
entities for studies, publishing reports and filing such reports as required
with regulatory bodies, continuously monitoring the operation of the Pool and
the MAPP communications system, providing assistance in determining potential
operating problems, conducting studies as required, coordinating the
operations of the MAPP Region with adjoining coordinated regions and others
as appropriate, and carrying out projects of the MAPP Committees as directed.
ARTICLE XVI
MAINTENANCE OF ADEQUATE CAPABILITY
16.01Each Participant expects and is expected to maintain utility
responsibility for its own load and, as a part of such responsibility, shall
maintain during each month Accredited Capability in an amount equal to or
greater than its maximum System Demand for such month plus such Participant's
Reserve Capacity Obligation, as set forth in Paragraph 16.02.
16.02The Reserve Capacity Obligation of a Participant, for any month,
shall be equal to fifteen percent (ten percent for a predominantly hydro
system) of the Annual System Demand of such Participant or as established by
the Management Committee.
16.03The Engineering Committee shall determine the Accredited
Capability for each Participant on the following basis:
a. In respect to Net Generating Capability, the Accredited
Capability shall be determined in accordance with Paragraph
3.07.
b. In respect to purchases and sales under Service Schedules
"A," "B," and "K," the Accredited Capability shall include
the amount for which the Participant has contracted
provided that such transactions are in accordance with
rules and regulations established by the Engineering
Committee.
c. In respect to purchases and sales under Service Schedules
"H," "I," and "J," the Accredited Capability shall include
the amount for which the Participant has contracted plus
the associated reserve capacity established from the
percentage determined by the Management Committee subject
to the provisions of Paragraph 2.02 of Service Schedule "I"
provided that such transactions are in accordance with
rules and regulations established by the Engineering
Committee.
d. In respect to commitments for power from or to any electric
power supplier, which are not under the Service Schedules
of this Agreement but are under separate contracts now
existing or hereafter created, such commitments shall be
reflected in a Participant's Accredited Capability provided
that such transactions are in accordance with rules and
regulations established by the Engineering Committee. Each
Participant shall submit, if requested, copies of its
contracts for such commitments to the Engineering Committee
for the purpose of such determination.
Determinations of Accredited Capability shall be reviewed by the Engineering
Committee at least semi-annually and at any other time upon the written
request of any Participant and any appropriate changes resulting from such
review shall be made. In order to secure consistency and continuity in
determining Accredited Capability, the Engineering Committee shall establish
rules and regulations as necessary These rules and regulations shall reflect
the following understanding:
i. Approval of transactions which are associated with a
coordinated system development, which may include non-
Participants, will be on the basis of reliability
considerations.
ii. Transactions for capability deficiencies which are residual
to subparagraph (i) normally will be made with Pool
Participants and Pool surpluses normally will be dedicated
to such transactions.
iii. Transactions will not be compelled with a Participant for
power and energy from generating capacity constructed by a
Participant in excess of capacity recommended by the
Engineering Committee.
16.04The Engineering Committee shall continually review the load and
capability forecasts for the Participants. If the forecast of a Participant
indicates that, during any month of the ensuing period, the length of period
being determined by the Engineering Committee, such Participant will not meet
its Reserve Capacity Obligation, such Participant shall make arrangements to
obtain additional Accredited Capability as approved by the Engineering
Committee so that during such month it will have sufficient capacity to meet
its Reserve Capacity Obligation. In the event that during any month a
Participant did not meet its maximum System Demand plus its Reserve Capacity
Obligation, such Participant shall be required to obtain additional
Accredited Capability from the other Participants. The amount of Accredited
Capability required by the deficient Participant and the source or sources
will be determined by the Engineering Committee. If Accredited Capability is
not available from Participants, the Engineering Committee may recommend:
a. Purchase from non-Participants.
b. Other means of sharing Reserve Capacity to effect
equalization of reserves.
16.05Nothing contained in this Agreement shall be interpreted to
require a Party to install facilities or to restrict a Party's election of
whether to install facilities or purchase power to maintain its Accredited
Capability.
ARTICLE XVII
INSTALLATION OF ADDITIONAL FACILITIES
17.01It is the intent hereof to provide for an equitable staggering of
future investments in generating capacity and other facilities in order to
obtain maximum economy and benefits from interconnected system operation. It
is understood that the generating units installed by the Participants
hereafter should be the most economical size and type practicable, taking into
consideration the size of the installing Participants' systems, the loads of
the Participants, the anticipated growth of such loads, the transmission
facilities required to transmit the output thereof to such loads or to supply
such loads when the unit is not in service and the ability of the systems of
the Participants and their interconnections with other interconnected systems
to withstand the instantaneous loss of such units without causing unstable
operation. It is also anticipated, that, in general, the amount and type of
additional generating capacity to be installed by any Participant shall take
into consideration the load and the load growth of such Participant and that
the installation of specific generating units shall be rotated among the
Participants so as to accomplish this overall intent. Whenever the
recommendation of the Engineering Committee is that a Participant construct
and install any additional generating or transmission facilities, such
Participant shall not be deemed committed to such construction or installation
unless it has elected to accept such recommendation by proper corporate action
reported by its representative on the Management Committee.
17.02It is understood by the Parties that nothing in the Agreement is
intended to preclude a Participant from constructing or utilizing generation
and transmission facilities other than those recommended by the Engineering
Committee; however, such facilities shall be subject to the established
reliability standards.
ARTICLE XVIII
MAINTENANCE OF ADEQUATE OPERATING RESERVE
18.01Each Participant shall provide Spinning Reserve and Non-Spinning
Reserve in the proportions recommended by the Operating Committee and
established by the Management Committee, equal to or greater than the
Operating Reserve Obligation of the Participant, as provided in Paragraph
18.02. As soon as practicable after the occurrence of an incident which
utilizes Operating Reserve, each Participant shall restore its Operating
Reserve Obligation by following procedures determined by the Operating
Committee.
18.02The Total Operating Reserve Obligation at any time shall initially
be an amount equal to 150 percent of the capability of the largest generating
unit in operation on the interconnected systems of the Participants and shall
be subject to revision by the Management Committee. The Operating Reserve
Obligation of a Participant shall be that percentage of the Total Operating
Reserve Obligation determined by the Operating Committee in accordance with
formula based on the capability of the largest generating unit of each
Participant and the Annual System Demand of such Participant. Initially one-
third weight shall be given to unit size and two-thirds weight to Annual
System Demand, such weighting shall be subject to revision by the Management
Committee.
18.03The Operating Committee will establish procedures for determining
the Operating Reserve that is available on the systems of the Participants at
all times. Whenever a Participant is unable to meet its Operating Reserve
Obligation, such Participant shall immediately advise all other Participants
and make arrangements to restore its Operating Reserve Obligation.
ARTICLE XIX
SERVICES TO BE RENDERED
19.01The various specific services to be rendered in furtherance of the
purposes of this Agreement are covered by Service Schedules of the Agreement
which are listed as follows:
"A" Participation Power Interchange Service
"B" Seasonal Participation Power Interchange Service
"C" Emergency and Scheduled Outage Interchange Service
"D" Operating Reserve Interchange Service
"E" Economy Energy Interchange Service
"F" Transmission Services and Losses
"G" Operational Control Energy Interchange Service
"H" Peaking Power Interchange Service
"I" Short Term Power Interchange Service
"J" Firm Power
"K" System Participation Power
"L" Interruptible Load Replacement Energy Service
"M" General Purpose Energy Service
19.02The Service Schedules are intended to facilitate coordinated daily
operation and the staggering of generation additions in accordance with
Paragraph 10.05 (d) and Article XVII and shall not be used to provide power
supply from a generation source for a greater period than that consistent with
Article XVII.
19.03The providing of Transmission Service under Service Schedule "F"
is based on each Participant providing an equitable portion of the
transmission facilities required to accomplish the coordinated daily operation
and coordinated planning contemplated hereunder.
a. Participants meeting the following criteria will be assumed
to be providing an equitable share of transmission:
i. Whose system is normally operated directly
interconnected with two or more Participants systems.
ii. Which owns or controls transmission facilities
operated at 115 Kv or higher forming an integral part
of the regional transmission network.
b. All other Participants may meet the qualifications set
forth in (a) through contractual arrangements with a
Participant which does meet the qualifications and to which
it is interconnected. Participants shall negotiate such
arrangements in good faith and in doing so shall be
expected to permit a Participant to qualify under this
subsection by making investment in facilities or by making
payments. The investment facilities or payments shall be
calculated to compensate the Participant for the use of its
facilities for transactions under the Service Schedules.
If two Participants are unable to negotiate a mutually
satisfactory contracting arrangement within a period of six
months after written notice has been received from the
Participant expressing a desire to enter into such a
contractual arrangement and the Participant receiving such
notice is a public utility within the meaning of section
201 (e) of the Federal Power Act, the Participant receiving
such notice shall, at the written request of the other
Participant, made at any time following the expiration of
six month period, file within sixty (60) days thereafter a
contractual arrangement with the Federal Energy Regulatory
Commission in accordance with the provision of section 205
of the Federal Power Act and the Regulations thereunder.
ARTICLE XX
SERVICE OBLIGATIONS
20.01It is recognized that the systems of the Participants are now or
may be interconnected with other systems and that other agreements for
interconnection, mutual assistance, pooling, power supply and transmission
service may exist or may be entered into between Participants or between a
Participant and another system. It is understood that the Participants intend
to assist each other to the maximum extent of their capabilities, but it is
recognized that such agreements may limit the capacities available to
Participants under the terms hereof.
20.02Any Participant, upon request by any other Participant, shall
supply to such other Participant Emergency Energy up to the full amount of its
Available Accredited Capability provided that such request conforms with the
provisions of Service Schedule "C."
20.03Any Participant, upon request by any other Participant, shall
supply to such other Participant Scheduled Outage Energy up to the full amount
of its Accredited Capability not required to maintain its Operating Reserve
Obligation; provided that the delivery thereof shall conform with the
provisions of Service Schedule "C" and provided further that, if the
requesting Participant is not using its Total Available Accredited Capability,
the Participant requested to supply scheduled Outage Energy shall not be
obligated to supply such energy when in the sole judgment of such Participant,
the supply of such energy would cause a hardship.
20.04Any Participant may procure through its interconnection with other
electric suppliers, Emergency Energy or Scheduled Outage Energy in addition
to that which can be supplied by the Participants which may be available under
agreements covering such interconnections from a source or sources which will
result in the lowest cost to the receiving Participant and shall arrange for
the delivery of such Emergency Energy or Scheduled Outage Energy to such
receiving Participant; provided that the delivery thereof can be made, in the
sole judgment of the Participant procuring such service, without endangering
its facilities or interfering with its obligations to its customers, other
Participants, or other electric suppliers.
20.05Any Participant whose transmission facilities are required to
provide Transmission Service for Emergency Energy supplied to a receiving
Participant shall transmit such energy up to such amounts as will not, in the
sole judgment of the Participant providing the Transmission Service, endanger
its facilities or interfere with its obligations to its customers, other
Participants, or other electric suppliers.
20.06Any Participant, upon request by any other Participant, shall
supply to such other Participant, Operating Reserve up to the full amount of
its Available Accredited Capability not required to maintain its Operating
Reserve Obligation; provided that the delivery thereof shall conform with the
provisions of Service Schedule "D" and provided further, however, that there
shall be no obligation of a Participant to supply Operating Reserve if the
requesting Participant is not making full use of its Available Accredited
Capability.
20.07Any Participant, when called upon to do so by any other
Participant, may supply Economy Energy to such other Participant provided such
call conforms with the provisions of Service Schedule "E."
20.08Any Participant, when called upon to do so by any other
Participant, may supply Interruptible Load Replacement Energy to such other
Participant, provided such call conforms with the provisions of Service
Schedule "L."
20.09Any Participant, when called upon to do so by any other
Participant, may supply General Purpose Energy to such other Participant,
provided such call conforms with the provisions of Service Schedule "M."
20.10Each Participant agrees that it will provide Transmission Service
in accordance with the provisions of Section 19.03 and Service Schedule "F."
The Participants shall endeavor to make maximum use of facilities for Pool
transactions consistent with MAPP reliability standards. Nothing herein shall
be construed as obligating any of the Participants to provide Transmission
Service other than for Participants in accordance with Section 19.03 and
Service Schedule "F".
20.11The service obligations set forth in this Article are each subject
to the limitations that the Participant on which the request is made as
therein stated shall not be obligated to use Available Accredited Capability
if it is at the time being used to supply the requirements of its customers
including obligations now existing or hereafter created to other Participants
or to other electric suppliers. A Participant shall not be obligated to
deliver power and energy over its transmission facilities if, in the sole
judgment of said Participant, such delivery will:
a. Endanger its facilities, or
b. Interfere with its obligations, now existing or hereafter
created, to its customers or to other electric suppliers.
20.12The Participant purchasing power and energy under Service
Schedules "A," "B," "H," "I," "J," "K," and "L" shall be responsible for
initiating scheduled deliveries thereunder and the scheduled rate of delivery
shall not exceed the amount being purchased under the Schedule. In the
scheduling of deliveries, due consideration shall be given to the rate of
change of delivery and the continuity of delivery so as not to cause undue
hardship on the system of the supplying Participant.
ARTICLE XXI
SERVICE CONDITIONS
21.01The systems of the Participants shall be operated interconnected
continuously under normal system conditions and the Participants shall
cooperate in keeping the frequency of the interconnected systems of the
Parties at 60 Hz as closely as is practicable, in keeping the interchange of
power and energy between the systems of the Participants as closely as is
practicable to the scheduled amounts and in maintaining mutually satisfactory
voltage levels. Each Participant shall be responsible for the reactive volt-
ampere requirements of its system. Reactive volt-amperes may be interchanged
between systems from time to time, subject to agreement between the
Participants involved, when benefit to one system may be gained thereby
without causing hardship to another system.
21.02The systems of the Participants shall normally be so maintained
and operated as to minimize, in accordance with good practice, the likelihood
of a disturbance originating in the system of one Participant causing
impairment to the service of the system of any other Participant or of any
other system with which the systems of the Participants are interconnected.
21.03It is recognized that unintentional interchange of power and
energy between interconnected systems will occur because of the impossibility
of continuously controlling generation to exactly equal the load. It also
is recognized that, due to the manner in which the systems of the Participants
are interconnected with each other and with other systems, a portion of the
power and energy scheduled for delivery between any two of such interconnected
systems may not flow directly from the supplier thereof to the receiver
thereof over the intended route through the transmission systems of the
Participants, but may result in inadvertent flows through other systems.
Therefore, because of these conditions:
a. All intentional power and energy deliveries between the
system of one Participant and the system of another
Participant shall be scheduled in advance.
b. It shall be the responsibility of each Participant to
maintain the net power and energy flowing into and out of
its system during each hour so that deliveries are, as near
as practicable, equal to the net scheduled amount. The
difference between the net scheduled deliveries and the
actual net deliveries shall be balanced out in kind in
accordance with principles and practices established by the
Operating Committee.
c. A Participant shall be entitled to compensation for losses
caused by the flow of power and energy scheduled from or to
another Participant. Such compensation shall be in the
form of an equivalent amount of energy in accordance with
methods determined by the Operating Committee.
d. It is not the intent to grant any Participant any right
generally to use the system of any other Participant as an
intermediary in power and energy transactions, nor shall
consent by a Participant to any power and energy flows
through its system in a particular case create any rights
for a Participant to continue such flows; and, where such
flows are objectionable to a Participant experiencing such
flows, the Participants shall cooperate to prevent such
flows from occurring normally and to minimize flows of this
character.
ARTICLE XXII
METERING
22.01All metering equipment required for recording the deliveries of
power and energy between the systems of each Participant and the systems of
the other Participants with which it is interconnected shall be maintained by
the Parties owning such metering equipment in accordance with good practice
and accepted industry standards.
22.02Should any such metering equipment at any time fail to register
or should the registration thereof be so erratic as to be meaningless, the
power and energy delivered shall be determined from the best information
available.
ARTICLE XXIII
RECORDS
23.01In addition to meter records, the Participants shall keep such log
sheets and other records (determined by the Operating Committee) as may be
needed to afford a clear history of the various movements of power and energy
between the systems of the Participants involved both in transactions
hereunder and in transactions between Participants hereto under other
agreements between such Participants and to effect such differentiation as may
be needed in connection with settlements in respect to such transactions. The
originals of all such meter records and other records shall be open to
inspection by representatives of the Participants concerned and by the
Operating Committee.
23.02Each Party shall furnish to the Operating Committee appropriate
data from meter registrations and from other sources on such time basis as are
determined by the Operating Committee when such data is needed for
settlements, special tests, operating records or for other purposes consistent
with the objectives hereof. As promptly as practicable after the end of each
month, each Participant shall render to the other Participants concerned,
statements setting forth appropriate data from meter registrations and other
sources in such detail and with such segregation as may be needed for
operating records and for settlements hereunder.
ARTICLE XXIV
BILLINGS AND PAYMENTS
24.01For billing purposes, the amount of energy delivered pursuant to
this Agreement by a supplying Participant to a receiving Participant, during
any period, shall be the amount scheduled for delivery.
24.02Billing for any transaction involving generation or transmission
capacity pursuant to this Agreement, including any Transmission Service
charges pertaining to such transaction, shall be based upon the amount of such
capacity committed in advance for delivery.
24.03All bills for services supplied pursuant to this Agreement shall
be rendered monthly by the supplying Participant to the purchasing Participant
after the end of the period to which such bills are applicable. Unless
otherwise agreed upon by the Operating Committee, such period shall be from
12:01 AM on the first day of the month to 12:01 AM of the first day of the
succeeding month. Bills shall be due and payable within fifteen days from the
date such bills are rendered and payment shall be made when due and without
deduction. Bills shall be deemed rendered on the postmark date if deposited
in first class mail with postage prepaid and shall be deemed rendered upon
receipt if another means of delivery is used. If the due date of any bill
falls on Saturday, Sunday or holiday observed by either Party, the bill shall
be due and payable on the next following working day of both Parties. Interest
shall accrue and be compounded daily on any unpaid amount, from the date due
until the date upon which payment is made, using the lowest daily prime rates
published in the money rates section of the Wall Street Journal for the
applicable time period. Such daily interest shall be computed on the basis
of actual days and a 365 day calendar year.
24.04Billing for Transmission Service shall be rendered monthly in a
manner to be determined by the Operating Committee.
24.05In the event a Participant desires to dispute all or any part of
the charges submitted by some other Participant, it shall nevertheless pay the
full amount of the charges when due and give notification in writing within
sixty (60) days from the date of the statement stating the grounds on which
the charges are disputed and the amount in dispute. The complaining
Participant will not be entitled to any adjustment on account of any disputed
charges which are not brought to the attention of the Participant rendering
such charges within the time and in the manner herein specified. If
settlement of the dispute results in a refund to the payer, interest shall
accrue and be compounded daily on the amount to be refunded from the date of
payment until the date upon which refund is made, using the lowest daily prime
rates published in the money rates section of the Wall Street Journal for the
applicable time period. Such daily interest shall be computed on the basis
of a 365 day year.
24.06All billings under this Agreement shall be determined and stated
and all payments shall be made in the currency of the United States of
America. For all billings, the rate to be used to convert from the currency
of the United States to that of Canada or from the currency of Canada to that
of the United States shall be the monthly average noon spot exchange rate for
the monthly billing period covered by such billing provided by the Royal Bank
of Canada, Winnipeg, Manitoba.
ARTICLE XXV
TAXES
25.01Any tax imposed upon the seller and levied upon or measured by
power or energy supplied by one Participant to another Participant shall be
added to the bill rendered by the Participant supplying the power or energy.
ARTICLE XXVI
UNCONTROLLABLE FORCES
26.01A Participant shall not be considered to be in default in respect
of any obligation hereunder if prevented from fulfilling such obligation by
reason of uncontrollable forces. The term "uncontrollable forces" shall be
deemed for the purposes hereof to mean storm, flood, lightning, earthquake,
fire, explosion, failure of facilities not due to lack of proper care or
maintenance, civil disturbance, labor disturbance, sabotage, war, national
emergency, restraint by court or public authority, or other causes beyond the
control of the Participant affected which such Participant could not
reasonably have been expected to avoid by exercise of due diligence and
foresight and by provision of reserves in accordance with the requirements of
this Agreement. Any Participant unable to fulfill any obligation by reason
of uncontrollable forces will exercise due diligence to remove such disability
with reasonable dispatch, but such obligation shall not require the settlement
of a labor dispute except in the sole discretion of the Participant
experiencing such labor dispute.
ARTICLE XXVII
WAIVERS
27.01Any waiver at any time by any Party of its rights with respect to
a default under this Agreement, or with respect to any other matter arising
in connection with this Agreement, shall not be deemed a waiver with respect
to any subsequent default or other matter arising in connection herewith. Any
delay short of the statutory period of limitation in asserting or enforcing
any right shall not be deemed a waiver of such right, except as provided in
Paragraph 24.05 of this Agreement.
ARTICLE XXVIII
NOTICES
28.01Any formal notice, demand or request required or authorized by
this Agreement shall be deemed properly given if mailed, postage prepaid, to
the Management Committee representative of the Party concerned, at the address
of such Party shown on the signature pages hereof.
28.02Any notice or request of a routine character in connection with
delivery of power and energy or in connection with operation of facilities,
shall be given in such manner as the Operating Committee from time to time
shall arrange.
ARTICLE XXIX
SUCCESSORS AND ASSIGNS
29.01No Party shall assign this Agreement without the consent, in
writing, of the other Parties, except in connection with the sale or merger
of a substantial portion of its properties including its high voltage
transmission facilities.
29.02The several provisions of this Agreement are not intended to and
shall not create rights of any character whatsoever in favor of any persons,
corporations, or associations other than the Parties to this Agreement and the
obligations herein assumed are solely for the use and benefits of the Parties
to this Agreement.
ARTICLE XXX
ARBITRATION
30.01Any controversy or claim arising out of or relating to this
Agreement or the breach thereof, or appeal from action of the Management
Committee under Paragraph 8.07 of this Agreement, shall be settled by
arbitration. Such arbitration shall be conducted before a board of three
arbitrators selected by the American Arbitration Association and the
arbitration shall be conducted in accordance with the commercial arbitration
rules of the American Arbitration Association then in effect, subject to the
further qualification that the arbitrators named under said rules shall be
competent by virtue of education and experience in the particular matter
subject to arbitration.
30.02The Party or Parties desiring arbitration shall demand such
arbitration by giving written notice to the other Party or Parties involved.
Such notice shall conform to the procedures of the American Arbitration
Association and shall include a statement of the facts or circumstances
causing the controversy and the resolution, determination or relief sought by
the Party or Parties desiring arbitration.
30.03 Before the matter is presented to the board of arbitrators a
conference shall be held to attempt to resolve the controversy or if that is
not possible, to stipulate as many facts as possible and to clarify and narrow
the issues to be submitted to arbitration.
30.04 The board of arbitrators shall have no authority, power or
jurisdiction to alter, amend, change, modify, add to or subtract from any of
the provisions of this Agreement nor to consider any issues arising other than
from the language in and authority derived from this Agreement.
30.05 The decision or award of the arbitrators shall be final and
binding upon the Parties and the Parties shall do such acts as the arbitration
decision or award may require of them. Judgment upon any award rendered by
the arbitrators may be entered in any court having jurisdiction and execution
issued thereon. This provision shall survive the termination of this
Agreement.
30.06 The Party or Parties demanding arbitration shall pay the costs
incurred in connection with the arbitration.
ARTICLE XXXI
CHOICE OF LAW
31.01In order to promote the uniformity of the interpretation of this
Agreement, it is agreed that the laws of the State of Minnesota shall control
the obligations and procedures established by this Agreement and the
performance and enforcement thereof.
ARTICLE XXXII
REGULATION
32.01This Agreement is subject to the regulation of any regulatory body
having jurisdiction thereof.
ARTICLE XXXIII
AMENDMENTS
33.01Any Participant may propose an amendment to this Agreement by
filing such proposed amendment with the Chairman of the Management Committee
who shall immediately forward copies thereof to the Participants. Each
Participant shall forward its vote to the Chairman and said vote must be
received by the Chairman within sixty (60) days after the date of filing.
33.02In voting on any amendment, each Participant shall have the same
number of votes as its representative would have under Paragraph 8.06. If
seventy-five percent (75%) or more of the total authorized votes favor the
amendment, such amendment will become effective 120 days after filing with the
Chairman of the Management Committee but no amendment shall affect
transactions agreed upon in writing prior to the effective date of such
amendment. Abstentions shall be counted as negative votes.
33.03 Notwithstanding Section 33.02 above, amendments that are subject
to the jurisdiction of the Federal Energy Regulatory Commission (FERC) will
become effective only upon acceptance without change or condition by the FERC,
or if accepted with change or condition by the FERC, upon confirmation and
approval of such change or condition by an affirmative vote of seventy-five
percent (75%) or more of the total authorized votes of the Management
Committee, and unless otherwise provided, will become effective the first day
of the MAPP Season following acceptance by the FERC, and if necessary,
confirmation by the Management Committee.
ARTICLE XXXIV
INTRA-CORPORATE RELATIONSHIPS
34.01Northern States Power Company, a Minnesota corporation,
hereinafter called "NSP," as a Participant herein shall include its
subsidiary, Northern States Power Company, a Wisconsin corporation. All
interchanges of power and energy between said companies and other Participants
shall be considered as transactions between such Participants and NSP.
34.02Minnesota Power & Light Company, a Minnesota corporation,
hereinafter called "MP," as a Participant herein shall include its subsidiary
Superior Water, Light and Power Company, a Wisconsin corporation. All
interchanges of power and energy between said companies and other Participants
shall be considered as transactions between such Participants and MP.
ARTICLE XXXV
PARTICIPATION BY THE WESTERN AREA POWER ADMINISTRATION
35.01The Parties understand that participation in this Agreement by THE
UNITED STATES OF AMERICA, hereinafter called the United States, is limited to
application of this Agreement to a specific electric system operated by the
Western Area Power Administration.
a. Application of this Agreement to the United States is
limited to a defined part of the electric system operated
by, and of the electric power facilities and resources
available to, the EASTERN DIVISION, PICK-SLOAN MISSOURI
BASIN PROGRAM, or its successor administrative entities.
b. Transactions between said Eastern Division of the Pick-
Sloan Missouri Basin Program and other power systems of the
United States shall be considered to be internal, one-
entity transactions for the purposes of this Agreement.
35.02The participation by the United States in this Agreement is
subject in all respects to acts of Congress and to regulations of the
Secretary of Energy established thereunder and rate schedules promulgated by
the Secretary of Energy or delegatee. This reservation includes, but is not
limited to:
a. The operation and administration of provisions of law
giving preference to certain classes of customers in the
sale of Federal power.
b. The final authority of Congress in all matters relating to
the installation, construction or operation of facilities.
c. The statutory authority of the Secretary of Energy to set
rates for the sale of power by the United States.
d. The statutory limitations upon the authority of the
Secretary of Energy to submit disputes arising under this
contract to arbitration.
35.03Contingent Upon Appropriations: Notwithstanding Article VI, where
the operations of this Agreement extend beyond the current fiscal year,
participation by the United States is contingent upon Congress making the
necessary appropriation for expenditures by the United States after such
current year shall have expired. In case such appropriation as may be
necessary to carry out obligations of the United States under this Agreement
is not made, the Parties release the United States from all liability due to
the failure of Congress to make such appropriation.
35.04Officials Not To Benefit: No member of or Delegate to Congress or
Resident Commissioner shall be admitted to any share or part of this Agreement
or to any benefit that may arise herefrom, but this restriction shall not be
construed to extend to this Agreement if made with corporations or companies
for their general benefit.
35.05Covenant Against Contingent Fees: The Parties warrant that no
person or selling agency has been employed or retained to solicit or secure
participation by the United States in this Agreement upon an agreement or
understanding for a commission, percentage, brokerage or contingent fee,
excepting bona fide employees or bona fide established commercial or selling
agencies maintained by the Parties for the purpose of securing business. For
breach or violation of this warranty, the United States shall have the right
to annul its participation in this Agreement without liability or, in its
discretion, to deduct from the contract price or consideration due from the
United States the full amount of such commission, percentage, brokerage, or
contingent fee.
35.06Utility Responsibility: Any reference in this Agreement to
"utility responsibility" of a Participant shall apply to the United States
only to the extent, and in the sense, that the United States has
responsibility for satisfying its obligations for power service as established
by other contracts.
35.07Membership in Other Groups: It is understood by the Parties that
the United States is at present a participant in the Western Systems
Coordinating Council (for a small part of its western facilities and
operations) and the Missouri Basin Systems Groups (for certain planning
coordination and joint transmission activities) and the United States may in
the future participate in other similar coordination arrangements.
Participation of the United States is dependent on its understanding that
nothing in this Agreement would preclude such other participation or
commitment of resources thereto, but rather that it remains the responsibility
of each Participant to insure that its obligations are not in conflict.
35.08Rate Schedules: Rate Schedules for rates and conditions of service
by the United States shall be governed by rate schedules promulgated by the
Secretary of Energy or delegatee:
a. The Service Schedules, except for Service Schedule "F"
Transmission Services and Losses, shall not apply to the
transactions of the United States. Service Schedule "F"
will apply to transactions to which the United States is a
party and to transactions by other Participants which
utilize the transmission system of the United States.
b. The United States will initiate discussion with the other
Participants as to the future applicability of the Service
Schedules to transactions made by the United States.
35.09Area Relations Committee: It is understood by the Parties that
Federal agencies are prohibited by law from participating in or contributing
to any activities influencing legislation or involving lobbying.
Participation of the United States in this Agreement and especially as to
participation in the Area Relations Committee, shall be limited to activities
that are clearly legal for an agency of the United States.
35.10Provisions Relative to Employment: The following provisions
governing employment under government contracts are set forth in Article P of
the "General Power Contract Provisions" made a part of all current power
contracts entered into by the Western Area Power Administration. It is
understood by the Parties that these provisions shall be applicable hereunder
to transactions between the United States and other Participants. For the
purpose of this Paragraph 35.10, the term "contract" shall mean this Agreement
and the term "Contractor" shall mean a Participant having transactions with
the United States.
a. During the performance of this contract, the Contractor
agrees as follows:
i. The Contractor will not discriminate against any
employee or applicant for employment because of race,
color, religion, sex or national origin. The
Contractor will take affirmative action to ensure
that applicants are employed and that employees are
treated during employment, without regard to their
race, color, religion, sex, or national origin. Such
action shall include, but not be limited to, the
following: employment, upgrading, demotion or
transfer, recruitment or recruitment advertising,
layoff or termination, rates of pay or other forms
of compensation, and selection for training,
including apprenticeship. The Contractor agrees to
post in conspicuous places, available to employees
and applicants for employment, notices to be provided
by the Contracting Officers setting forth the
provisions of this Equal Opportunity clause.
ii. The Contractor will, in all solicitations or
advertisements for employees placed by or on behalf
of the Contractor, state that all qualified
applicants will receive consideration for employment
without regard to race, color, religion, sex, or
national origin.
iii. The Contractor will send to each labor union or
representative of workers with which he has a
collective bargaining agreement or other contract or
understanding, a notice, to be provided by the agency
Contracting Officer, advising the labor union or
workers' representative of the Contractor's
commitments under this Equal Opportunity clause and
shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
iv. The Contractor will comply with all provisions of
Executive Order No. 11246 of September 24, 1965, and
the rules, regulations and relevant orders of the
Secretary of Labor.
v. The Contractor will furnish all information and
reports required by Executive Order No. 11246 of
September 24, 1965, and by the rules, regulations and
orders of the Secretary of Labor or pursuant thereto
and will permit access to his books, records and
accounts by the contracting agency and the Secretary
of Labor for purposes of investigation to ascertain
compliance with such rules, regulations and orders.
vi. In the event of the Contractor's noncompliance with
the Equal Opportunity clause of this contract or with
any of the said rules, regulation or orders, this
contract may be canceled, terminated or suspended, in
whole or in part, and the Contractor may be declared
ineligible for further Government contracts in
accordance with procedures authorized in Executive
Order No. 11246 of September 24, 1965, and such
other sanctions may be imposed and remedies invoked
as provided in Executive Order No. 11246 of September
24, 1965, or by rule, regulation or order of the
Secretary of Labor, or as otherwise provided by law.
vii. The Contractor will include the provisions of
paragraphs (i) through (vii) in every subcontract or
purchase order unless exempted by rules, regulations
or orders of the Secretary of Labor issued pursuant
to Section 204 of Executive Order No. 11246 of
September 24, 1965, so that such provisions will be
binding upon each subcontractor or vendor. The
Contractor will take such action with respect to any
subcontract or purchase as the contracting agency may
direct as a means of enforcing such provisions,
including sanctions or noncompliance; provided
however, that in the event the Contractor becomes
involved in, or is threatened with, litigation with
a subcontractor or vendor as a result of such
direction by the contracting agency, the Contractor
may request the United States to enter into such
litigation to protect the interests of the United
States.
b. In the performance of any part of the work contemplated by
this contract, the Contractor shall not employ any person
undergoing sentence of imprisonment at hard labor.
ARTICLE XXXVI
PARTICIPATION BY THE MANITOBA HYDRO
36.01The generating and transmission systems of the Manitoba Hydro and
the City of Winnipeg Hydro Electric System are interconnected and operated as
a single system. Manitoba Hydro provides any additional generating capacity
required to meet the combined needs of Manitoba Hydro and the City of
Winnipeg. For the purposes of this Agreement, System Demand and Accredited
Capability for Manitoba Hydro shall be determined for the combined systems of
Manitoba Hydro and the City of Winnipeg Hydro Electric System.
36.02The participation by Manitoba Hydro in this Agreement is subject
in all respects to legislation of the Governments of Canada and Manitoba.
This includes but is not limited to: a. The final authority of the Government
of Canada in all matters relating to the export of electric power. b. The
final authority of the Government of Manitoba in all matters relating to the
installation or construction of facilities.
36.03It is understood by the Parties that Manitoba Hydro has entered
into interconnection agreements with electric utilities in other Provinces of
Canada. Under the terms of these agreements, Manitoba Hydro may not make
commitments to supply surplus electric power and energy or any other related
services to a utility based outside of Canada without first giving utilities
based in Canada the prior right to purchase such surplus electric power,
energy and other services on the same terms and conditions and at an
equivalent price.
36.04The reliability characteristics of Manitoba Hydro's generating
facilities, which are predominantly hydroelectric, shall be considered when
establishing Manitoba Hydro's Reserve Capacity Obligation.
36.05It is an acknowledged condition to the participation by Manitoba
Hydro in this Agreement that:
a. Nothing in this Agreement shall alter or diminish the
rights of other Canadian electric utilities to purchase
surplus electric power, energy, and services from Manitoba
Hydro.
b. Nothing in this Agreement shall preclude participation by
Manitoba Hydro in any Canadian electric power pool or the
commitment of resources thereto.
c. Manitoba Hydro's participation in the Area Relations
Committee shall be limited to activities which are clearly
nonpolitical inasmuch as Manitoba Hydro does not have the
right to participate in or contribute to any activity which
is intended to influence legislation.
d. Any provision governing employment or production of goods
and services enacted by the Congress of the United States
of America or enacted by any other legislative body in the
United States of America shall not be applicable to any
power or other service provided by Manitoba Hydro to the
United States of America or to any other party in the
United States of America.
e. The authority of the Federal Energy Regulatory Commission
on matters pertaining to power transactions between
Manitoba Hydro and the other Parties shall not be
applicable to the transmission or use of such power within
Canada.
f. The provisions of Article XXX shall not apply to any
controversy, claim or dispute arising out of or relating to
this Agreement or the breach thereof which involves
Manitoba Hydro and any such controversy, claim or dispute
shall be referred to the Chief Executive Officer of each of
the disputing parties to resolve.
g. Notwithstanding Article XXXI, the laws of the Province of
Manitoba, Canada, shall apply to any transactions
undertaken or services rendered in Canada and the
performance and enforcement thereof.
Execution. Separate copies of this Agreement are executed by the
Parties with the understanding that, when each of the Parties has executed a
copy, its separately executed copy will be joined together with all other
similarly executed copies and one conformed master copy of said agreement
shall be prepared, which shall bind all of the Parties to the same extent and
purpose as if all of said Parties had joined in the execution of said master
copy.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
executed by its duly authorized officer as of the day and year of the
membership shown below.
SIGNATORY PARTICIPANTS
(Date of Membership)
BASIN ELECTRIC POWER COOPERATIVE ARTHUR JONES
(August 14, 1975) President
CENTRAL IOWA POWER COOPERATIVE JOSEPH C. ARMBRECHT
(March 31, 1972) President
COOPERATIVE POWER ASSOCIATION ORVILLE J. LIPKE
(March 31, 1972) President
CORN BELT POWER COOPERATIVE WARREN C. SNELL
(March 31, 1972) President
DAIRYLAND POWER COOPERATIVE JOHN P. MADGETT
(March 31, 1972) General Manager
HEARTLAND CONSUMERS POWERDISTRICT WENDELL J. GARWOOD
(February 13, 1979) General Manager
HUTCHINSON UTILITIES COMMISSION THOMAS B. LYKE
(February 25, 1991) Vice President
INTERSTATE POWER COMPANY GLENN J. LYSHOJ
(March 31, 1972) Vice President
IOWA ELECTRIC LIGHT AND POWER COMPANY DUANE ARNOLD
(March 31, 1972) Chairman of the Board and President
IOWA-ILLINOIS GAS AND ELECTRIC COMPANY C. J. MATH
(March 31, 1972) Vice President
IOWA POWER AND LIGHT COMPANY D. H. SWANSON
(March 31, 1972) President
IOWA PUBLIC SERVICE COMPANY F. W. GRIFFITH
(March 31, 1972) Chairman and President
IOWA SOUTHERN UTILITIES COMPANY R. F. BREWER
(March 31, 1972) President
LINCOLN ELECTRIC SYSTEM WALTER A. CANNEY
(December 1, 1977) Administrator
MINNESOTA POWER J. F. ROWE
(March 31, 1972) Executive Vice President
MINNKOTA POWER COOPERATIVE, INC. TED M. LEE
(March 31, 1972) President
MISSOURI BASIN MUNICIPAL POWER AGENCY RUSSELL DAU
(March 12, 1980) General Manager
MONTANA-DAKOTAS UTILITIES CO. DAVID M. HESKETT
(March 31, 1972) President
MUSCATINE POWER & WATER JAMES P. FULLER
(March 19, 1976) General Manager
NEBRASKA PUBLIC POWER DISTRICT DON E. SCHAUFELBERGER
(March 31, 1972) Deputy General Manager
NORTHERN STATES POWER COMPANY EDWARD C. SPETHMANN
(March 31, 1972) Vice President - Public Affairs
NORTHWEST IOWA POWER COOPERATIVE CARL PAULSON
(November 26, 1979) Exec. Vice President and General Manager
NORTHWESTERN PUBLIC SERVICE COMPANY A. D. SCHMIDT
(March 31, 1972) President
OMAHA PUBLIC POWER DISTRICT A. L. MONROE
(March 31, 1972) General Manager
OTTER TAIL POWER COMPANY DONALD F. VRASPIR
(December 27, 1979) Vice President
SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY PIERRE HEROUX
(November 1, 1982) Executive Director
UNITED POWER ASSOCIATION
(May 1, 1972)
THE UNITED STATES OF AMERICA H. E. ALDRICH
(March 31, 1972) Regional Director, Region 6
U.S. Bureau of Reclamation
SIGNATORY ASSOCIATE PARTICIPANTS
AMES MUNICIPAL ELECTRIC SYSTEM MERLIN C. HOVE
(January 5, 1983) Director
CEDAR FALLS, IOWA LEONARD J. KEEFE
(March 31, 1972) Cedar Falls Utilities Board of Trustees
CUMBERLAND MUNICIPAL UTILITY CHARLES CHRISTENSEN
(December 30, 1982) Manager
DELANO, MINNESOTA LAURENCE RIEDER
(March 31, 1972) Mayor
FREMONT, NEBRASKA MILTON LAUNER
(January 9, 1980) Assistant General Manager
GLENCOE, MINNESOTA DONALD A. NELSON
(March 31, 1972) Secretary
Light & Power Commission
GRAND ISLAND, NEBRASKA R. J. OLSON
(September 6, 1977) Director of Utility Operation
HARLAN MUNICIPAL UTILITIES F. JAMES KALAL
(July 14, 1983) General Manager
MADELIA, MINNESOTA C. W. SEIBERT
(March 31, 1972) Commissioner
Public Utilities Commission
MUNICIPAL ENERGY AGENCY OF NEBRASKA H. STEVE WACKER
(June 26, 1979) General Manager
NORTH IOWA MUNICIPAL ELECTRIC COOPERATIVE
ASSOCIATION RONALD L. DEIBER
(March 9, 1982) President
NORTHWESTERN WISCONSIN ELECTRIC CO. FRED E. DAHLBERG
(March 31, 1972) President
OWATONNA, MINNESOTA TY SINCOCK
(November 1, 1972) President
Municipal Public Utilities
ROCHESTER, MINNESOTA R. JOHN MINER
(January 2, 1980) Director
SASKATCHEWAN POWER CORPORATION K. D. WELLMAN
(February 10, 1981) Corporate Legal Counsel
WISCONSIN PUBLIC POWER, INC. DAVID PENN
(November 2, 1990) General Manager
MID-CONTINENT AREA POWER POOL
Service Schedule A
Participation Power Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the sale of Participation Power by a
Participant to any other Participant from a specific generating unit or units.
Participation Power shall mean power and energy which is sold from a specific
generating unit or units on the basis that it is continuously available except
when such unit or units are temporarily out of service for maintenance during
which time the delivery of energy from other sources shall be at the seller's
option.
Section 2.Conditions of Service
2.01 This Schedule shall be available for the sale of Participation
Power for a period of six months or more.
2.02 Participation Power shall be supplied through transmission
facilities which have adequate capacity for transmitting such power and
energy, and Transmission Service shall be arranged in accordance with the
procedures established under Service Schedule "F."
2.03 FERC-regulated Participants who enter into transactions to sell
power under this schedule shall file the applicable agreement with the FERC
as a rate schedule.
Section 3.Schedule of Rates
3.01 The rate and term for Participation Power under this Service
Schedule "A" shall be negotiated by the Participants arranging the
transaction.
3.02 In the event that service cannot be supplied on the effective date
of an Agreement to sell Participation Power under this Service Schedule "A"
due to a delayed in-service date of the associated generating facilities, the
demand charge to be paid by the purchasing Participant shall not be effective
until the date such facilities are included as Accredited Capability.
3.03 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
Service Schedule B
Seasonal Participation Power Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the sale of Seasonal Participation
Power by any Participant to any other Participant from a specific generating
unit. Seasonal Participation Power shall mean power and energy which is sold
from a base load unit on the basis that it is continuously available except
when such unit is temporarily out of service for maintenance during which time
the delivery of energy from other sources shall be at the seller's option.
Section 2.Conditions of Service
2.01 This Schedule shall be available for the sale of Seasonal
Participation Power for six consecutive months beginning on May 1 or November
1 unless other dates are agreed to by the Engineering Committee.
2.02 Seasonal Participation Power shall be supplied through
transmission facilities which have adequate capacity for transmitting such
power and energy, and Transmission Service shall be arranged in accordance
with the procedures established under Service Schedule "F."
Section 3.Schedule of Rates
3.01 The receiving Participant shall pay to the supplying Participant
for Seasonal Participation Power furnished during any month under this
Schedule an amount determined from the following schedule of rates:
Demand Charge:
For each megawatt or fraction thereof committed by the supplier, a
charge per month not more than P, where
P = A/12
where A = the value for the applicable year based on ten (10) years of
data representing the composite levelized annual fixed charges per
megawatt for the units of the Participants which supplied, or are most
likely to supply capacity and energy under this Schedule.
For each FERC regulated Participant, the levelized annual fixed carrying
charge would be the sum of the return requirement, depreciation, income
tax, property tax and administrative and general costs. The return
requirement shall be calculated in accordance with standard FERC methods
using debt costs, preferred stock cost and a percentage rate of return
on equity, weighted in accordance with the Participant's capital ratios
at the end of the preceding calendar year. The percentage rate of
return on equity shall be the FERC benchmark rate of return on equity
percentage, which shall be filed annually with the FERC. The income tax
requirement which shall include deferred taxes, shall be calculated in
accordance with standard FERC methods using federal and state tax rates
in effect for the current year. The administrative and general costs
in column b on line 167 of page 323 of the FERC Form 1 shall be
appropriately allocated to the electric production plant and converted
to a percentage of the electric production plant investment. Appendix
1 describes the calculation of the demand charge for this Service
Schedule.
Participants not regulated by the FERC will file a comparable,
reasonable levelized annual carrying charge with the MAPP Coordination
Center for use in this calculation.
Energy Charge:
a. For all energy supplied from the assigned generating unit,
a charge per kilowatt-hour of 110 percent of Average Production
Cost for the month of the assigned generating unit, for both the
energy delivered to the receiving Participant and the energy
supplied by the supplying Participant to any intervening
Participant or Participants as compensation for losses.
b. For all energy supplied when the assigned generating unit
is temporarily out of service for maintenance, a charge per
kilowatt-hour of 110 percent of Incremental Cost of supplying
such energy, for both the energy delivered to the receiving
Participant and the energy supplied by the supplying Participant
to any intervening Participant or Participants as compensation
for losses.
c. The percentage adder components contained in the third-
party purchase and resale provisions of this rate schedule are
hereby limited to recover no more than:
i. The FERC Order 84 adder for each FERC-regulated
Participant. The FERC Order 84 adder for each FERC-
regulated Participant is shown on Appendix 6 to this
Agreement. FERC-regulated Participants shall provide the
FERC and the MAPP Coordination Center with a revised
Appendix 6 whenever a change to their Order 84 adder is
filed with the FERC.
ii. A value on file at the MAPP Center for Participants
not regulated by the FERC.
3.02 In the event that service cannot be supplied on the effective date
of an agreement to sell Seasonal Participation Power under this Service
Schedule "B" due to a delayed in-service date of the associated generating
facilities, the demand charge to be paid by the purchasing Participant shall
not be effective until the date such facilities are included as Accredited
Capability.
3.03 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
Service Schedule C
Emergency and Scheduled Outage Energy Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the supply of energy by any Participant
to any other Participant during Emergency Outages or Scheduled Outages for
maintenance of generating or transmission facilities or both.
Section 2.Scheduling of Deliveries
2.01 Deliveries of Emergency Energy shall be scheduled as soon as
possible after the occurrence of an Emergency Outage in accordance with
principles and practices established by the Operating Committee. Transmission
Service for Emergency Energy shall be available in accordance with the
procedures established under Service Schedule "F."
2.02 Scheduled Outage Energy may be scheduled from a Participant not
directly interconnected providing such energy is available at a lower
delivered cost than from a directly interconnected Participant. Transmission
Service for Scheduled Outage Energy shall be available in accordance with the
procedures established under Service Schedule "F."
Section 3.Schedule of Rates
3.01 The receiving Participant shall pay to the supplying Participant
for Emergency Energy furnished during any month under this Schedule the
greater of 3.0 cents per kilowatt-hour or 110 percent of the supplying
Participant's Incremental Cost of supplying such energy.
3.02 The receiving Participant shall compensate the supplying
Participant for Scheduled Outage Energy furnished during any month under this
Schedule in accordance with one of the following subparagraphs:
a. The receiving Participant shall pay to the supplying
Participant for such Scheduled Outage Energy an amount of
whichever is the greater:
i. 110 percent of the Incremental Cost of producing such
energy, or
ii. 110 percent of the average cost of the receiving
Participant had it produced such energy with the generating
unit which is out of service, which average cost shall
include but not be limited to fuel cost and operation and
maintenance cost;
provided that, if the receiving Participant is not using its Total
Available Accredited Capability, the supplying Participant may require
the receiving Participant to make an additional payment for any
financial loss that accrues to the supplying Participant due to this
transaction replacing a sale to another party. For uniformity of
application, such additional payment should be calculated assuming that
the decremental cost of the other sale would have been an amount equal
to the cost of energy from oil-fired generation determined in accordance
with principles and practices established by the Operating Committee as
follows:
The cost of oil-fired generation will be calculated using the least-
squares method based on a maximum of seven years' data. For FERC
regulated Participants, the data used will be the sum of fuel, operation
and maintenance costs divided by net KWH (where net generation is
sufficient to demonstrate true operating costs) which is line 35 on page
402 and columns e, h, i and o on pages 410 and 411 of the FERC Form 1.
Participants not regulated by the FERC will provide comparable data when
cost data is requested for filing at the MAPP Coordination Center.
b. The Participant supplying Scheduled Outage Energy may, at
its option, require the receiving Participant to return such
energy at such times and under such conditions that the supplying
Participant will not experience a loss due to the transaction, or
under conditions mutually agreeable to both Participants.
3.03 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply to Scheduled Outage Energy transactions. The
Transmission Service charge and losses provisions of Service Schedule "F"
shall not apply to Emergency Energy transactions.
Service Schedule D
Operating Reserve Interchange Service
Section 1.Service to be Provided
1.01 A Participant may arrange for some other Participant to supply
part or all of its Operating Reserve requirement.
Section 2.Scheduling of Rates (See Note No. 1)
2.01 Except as otherwise agreed to by the Participants concerned, a
Participant supplying a portion or all of some other Participant's Operating
Reserve during any month shall be paid by the purchasing Participant an amount
of whichever is greater of the following:
a. 110 percent of the incremental cost of supplying such
service, or
b. The incremental cost of supplying such service plus one-
half of the overall savings of such transaction, where overall
savings shall be equal to the difference between the incremental
cost of the selling Participant and the decremental cost of the
purchasing Participant.
2.02 In the event there are repetitive transactions between certain
Participants involving similar incremental and decremental costs, flat rates
or an exchange arrangements may be established for such transactions by the
representatives of the Participants concerned.
Note No. 1
Incremental and Decremental Cost for the purpose of this schedule only,
shall be determined as follows:
Incremental cost of the supplying Participant shall be based on
the costs incurred in starting and/or operating any generating
unit or units which must be started as a result of supplying such
service.
Decremental cost of the purchasing Participant shall be based on
the cost avoided by not starting and/or operating any generator
unit or units as a result of receiving such service.
Service Schedule E
Economy Energy Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the supply of Economy Energy by any
Participant to any other Participant when it is economical and practical to
do so under the conditions set forth hereinafter and in Paragraph 20.07 of the
Agreement.
Section 2.Conditions of Service
2.01 It is the intent hereof that, insofar as is practicable, Economy
Energy from available sources having the lowest Incremental Costs shall be
used to displace generation having the highest Decremental Costs and so on
until such transactions are no longer economical; provided that such
transactions are not scheduled in amounts which will overload any transmission
facility or endanger the operation of the interconnected systems.
2.02 Transmission Service shall be available in accordance with the
procedures established under Service Schedule "F."
Section 3.Scheduling of Deliveries
3.01 Prior to beginning deliveries, the Participants involved will
agree on an hour-by-hour schedule of energy to be delivered.
Section 4.Schedule of Rates
4.01 The overall savings of an Economy Energy transaction shall be
equal to the difference between the Incremental Cost of the supplying
Participant and the Decremental Cost of the receiving Participant. If the
transmission system of a non-Participant is involved in an Economy Energy
transaction, any transmission fees and losses to be paid for the use of such
system shall be deducted from the overall savings in determining the net
savings of the transactions.
4.02 The receiving Participant shall pay the supplying Participant for
the Economy Energy supplied during each month, an amount equal to the
Incremental Cost of the energy so supplied, plus one-half of the net savings
of such transactions which remain after deducting the amount paid by the
receiving Participant to any parties providing transmission service in
accordance with Paragraph 4.01 herein and with Service Schedule "F."
4.03 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
Service Schedule F
Transmission Services and Losses
Section 1.Service to be Provided
1.01 This Schedule provides for Transmission Service in connection with
Coordination Transactions scheduled between Participants, or scheduled between
a Participant and another utility, in a non-Participant Control Area, with
which the Participant has a direct interconnection or has rights to deliver
or receive power and energy at such an interconnection.
1.02 This Service Schedule shall not be used for and will not be
applied to provide Transmission Service to deliver power and energy from
generation owned or leased by a Participant or from which a Participant
purchases power and energy pursuant to life-of-unit contracts, to serve load
which that Participant has an obligation under law or contract to supply
(including preference customers in the case of the United States). This
Service Schedule shall also not be used for and will not be applied to provide
for Transmission Service to deliver power and energy to an ultimate consumer.
1.03 Service Schedule "F" shall be applicable to transactions, to which
a Participant is a party, of four years (eight full seasons) or less from the
date notice of the transaction is given to the MAPP Center in accordance with
the procedures established by the applicable committee. Transmission Service
under Service Schedule "F" may be used for portions of longer term
transactions, but only to the extent any such portion occurs within four years
(eight full seasons) of the date notice of the transaction is given to the
MAPP Center. The eight full seasons are the eight consecutive seasons
immediately following notification of the MAPP Center of the transaction,
assuming notification is provided before the first season. To the extent the
transaction occurs during the first season, the eight seasons shall consist
of that season and the following seven seasons.
Section 2.Conditions of Service
2.01 Transmission Service for transactions under Service Schedules "A",
"B", "H", "I", "J", and "K", and any other capacity transactions, shall be
arranged in accordance with procedures established by the Engineering
Committee. Transmission Service for transactions under Service Schedules "C",
"E", "G", "L", and "M", and any other energy-only transactions, shall be
available in accordance with procedures established by the Operating
Committee. There shall be no Transmission Service charge applicable to
Emergency Energy transactions under Service Schedule "C".
2.02. Nothing contained in this Service Schedule "F" or in the
procedures established by the appropriate committee pursuant to Section 2.01
shall be interpreted to require a Party to install or upgrade transmission
facilities or to redispatch its generation in order to enable Transmission
Service to be arranged or made available for prospective transactions.
2.03 Available transmission capacity for MAPP Service Schedule "F"
shall be determined on an integrated system basis considering the combined
transfer capability of all Participants' transmission systems. If requests
for transmission capacity exceed the available transmission capacity, the
available transmission capacity will be allocated under procedures established
by the Engineering and Operating Committees.
Section 3.Compensation
3.01 Each Participant who provides Transmission Service utilizing
transmission facilities of 115kV and higher, except for Service Schedule C
Emergency Energy transactions, shall be entitled to compensation in accordance
with the Transmission Service charge formulae and methodology set forth in
Appendix 7. Participants whose 69kV transmission facilities meet the criteria
set forth in Appendix 7 for inclusion in such formulae and methodology of the
investments in and flows through such facilities shall also be entitled to
compensation in accordance with Appendix 7.
3.02 The buyer shall pay for Transmission Service, unless the buyer is
a non-Participant, in which case the selling Participant pays.
3.03 Whenever a Participant schedules the delivery of power and energy
pursuant to this Agreement, the amount of power and energy to be furnished to
the other Participants as compensation for losses shall be determined in
accordance with formulae established by the Operating Committee.
Service Schedule G
Operational Control Energy Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the supply of Operational Control
Energy by any Participant to any other Participant to improve electric system
control and reliability.
1.02 This Schedule also provides for the supply of energy by any
Participant to any other Participant for resale to another electric supplier,
not signatory hereto, to enable such other supplier to meet emergency
conditions on its own system.
Section 2.Conditions of Service
2.01 Operational Control Energy shall not be used in lieu of energy
available under any other Service Schedule and shall not be considered in the
determination of a Participant's Accredited Capability.
2.02 Transmission Service shall be available in accordance with the
procedures established under Service Schedule "F."
Section 3.Schedule of Rates
3.01 For all energy supplied under Paragraph 1.01 herein, the receiving
Participant shall pay to the supplying Participant for Operational Control
Energy, furnished during any month under this Schedule, 110 percent of the
Incremental Cost of the supplying Participant when the transaction is
initiated by the receiving Participant for its benefit or ninety percent (90%)
of the Decremental Cost of the receiving Participant when the transaction is
initiated by the supplying Participant for its benefit.
The percentage adder components contained in the third-party purchase
and resale provisions of this rate schedule are hereby limited to
recover no more than:
i. The FERC Order 84 adder for each FERC-regulated
Participant. The FERC Order 84 adder for each FERC-regulated
Participant is shown on Appendix 6 to this Agreement. FERC-
regulated Participants shall provide the FERC and the MAPP
Coordination Center with a revised Appendix 6 whenever a change
to their Order 84 adder is filed with the FERC.
ii. A value on file at the MAPP Center for Participants not
regulated by the FERC.
3.02 For all energy supplied during any month under Paragraph 1.02, the
receiving Participant shall pay to the supplying Participant the rate in
effect under Service Schedule "C," Paragraph 3.01.
3.03 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
Service Schedule H
Peaking Power Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the sale of Peaking Power by any
Participant to any other Participant. Peaking Power shall mean power and
associated energy intended to be available at all times during the period
covered by a commitment and which is sold with anticipated low load factor
use. Such power shall include required reserve capacity.
Section 2.Conditions of Service
2.01 This Schedule shall be available for the sale of Peaking Power for
a period of six consecutive months beginning on May 1 or November 1 unless
other dates are agreed to by the Engineering Committee.
2.02 Peaking Power shall be supplied through transmission facilities
which have adequate capacity for transmitting such power and energy, and
Transmission Service shall be arranged in accordance with the procedures
established under Service Schedule "F."
2.03 The supplying Participant shall guarantee that Peaking Power
purchased hereunder shall be available to the receiving Participant on at
least a twenty percent (20%) monthly capacity factor. The supplying
Participant of such Peaking Power may limit delivery of energy, above the
guaranteed amount. The capacity factor set forth herein shall be subject to
change by the Engineering Committee from time to time.
Section 3. Schedule of Rates
3.01 The receiving Participant shall pay to the supplying Participant
for Peaking Power furnished during any month under this Schedule an amount
determined from the following schedule of rates:
Demand Charge:
For each megawatt or fraction thereof committed by the supplying
Participant, a charge per month not more than the greater of:
i. Q, where
Q = B/12
where B = a value based on all Participant's current levelized annual
fixed charges per megawatt for their total peaking generating capacity,
or
ii. $2,000
For each FERC regulated Participant, the levelized annual fixed carrying
charge would be the sum of the return requirement, depreciation, income
tax, property tax and administrative and general costs. The return
requirement shall be calculated in accordance with standard FERC methods
using debt costs, preferred stock cost and a percentage rate of return
on equity, weighted in accordance with the Participant's capital ratios
at the end of the preceding calendar year. The percentage rate of
return on equity shall be the FERC benchmark rate of return on equity
percentage which shall be filed annually with the FERC. The income tax
requirement, which shall include deferred taxes, shall be calculated in
accordance with standard FERC methods using federal and state tax rates
in effect for the current year. The administrative and general costs
in column b on line 167 of page 323 of the FERC Form 1 shall be
appropriately allocated to the electric production plant and converted
to a percentage of the electric production plant investment. Appendix
2 describes the calculation of the demand charge for this Service
Schedule.
Participants not regulated by the FERC will file a comparable,
reasonable levelized annual carrying charge with the MAPP Coordination
Center for use in this calculation.
Energy Charge:
For all energy supplied hereunder, a charge per kilowatt-hour of 110
percent of the Incremental Cost of producing or purchasing such energy,
whichever is less, for both the energy delivered to the purchasing
Participant and the energy supplied by the supplying Participant to any
intervening Participant or Participants as compensation for losses.
The percentage adder components contained in the third-party purchase
and resale provisions of this rate schedule are hereby limited to
recover no more than:
i. The FERC Order 84 adder for each FERC-regulated
Participant. The FERC Order 84 adder for each FERC-regulated
Participant is shown on Appendix 6 to this Agreement. FERC-
regulated Participants shall provide the FERC and the MAPP
Coordination Center with a revised Appendix 6 whenever a change
to their Order 84 adder is filed with the FERC.
ii. A value on file at the MAPP Coordination Center for
Participants not regulated by the FERC.
In the event it is desired by the Participants involved, an exchange
arrangement may be established by the representatives of the Parties
concerned. The supplying Participant of Peaking Power may, at its
option, require the return of any energy delivered above the guaranteed
monthly capacity factor at such times and under such conditions as
agreed to by representatives of the Participants concerned.
3.02 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
Service Schedule I
Short Term Power Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the sale of Short Term Power by any
Participant to any other Participant. Short Term Power shall mean power and
associated energy intended to be available at all times during the period
covered by a commitment. Such power shall include required reserve capacity.
Section 2.Conditions of Service
2.01 This Schedule shall be available for the sale of Short Term Power
for periods of seven or more consecutive days each.
2.02 Short Term Power shall be included in the Accredited Capability
of a Participant only under special conditions, such as:
a. In an instance where a significant new industrial customer
load is imposed upon a Participant's system at a time different
from the purchase period for which other schedules are
applicable.
b. In an instance where a generator or transmission line
addition does not meet the scheduled in-service date.
c. In an instance where it is being purchased for resale to an
electric supplier who is not a Participant.
d. In an instance where a Participant's October system demand
is forecast to exceed the maximum system demand of the previous
five months.
2.03 Short Term Power shall be supplied through transmission facilities
which have adequate capacity for transmitting such power and energy, and
Transmission Service shall be arranged in accordance with the procedures
established under Service Schedule "F."
Section 3.Schedule of Rates
3.01 The receiving Participant shall pay to the supplying Participant
for Short Term Power furnished during any month under this Schedule an amount
determined from the following schedule of rates:
Demand Charge:
For each megawatt or fraction thereof committed by the supplying
Participant, a charge per day not more than the greater of:
i. R, where
R = B/365
where B = a value based on all Participants' current levelized
annual fixed charges per megawatt for their total peaking
generating capacity, or
ii. $66
For each FERC regulated Participant, the levelized annual fixed carrying
charge would be the sum of the return requirement, depreciation, income
tax, property tax and administrative and general costs. The return
requirement shall be calculated in accordance with standard FERC methods
using debt costs, preferred stock cost and a percentage rate of return
on equity, weighted in accordance with the Participant's capital ratios
at the end of the preceding calendar year. The percentage rate of
return on equity shall be the FERC benchmark rate of return on equity
percentage, which shall be filed annually with the FERC. The income tax
requirement, which shall include deferred taxes, shall be calculated in
accordance with standard FERC methods using federal and state tax rates
in effect for the current year. The administrative and general costs
in column b on line 167 of page 323 of the FERC Form 1 shall be
appropriately allocated to the electric production plant and converted
to a percentage of the electric production plant investment. Appendix
3 describes the calculation of the demand charge for this Service
Schedule.
Participants not regulated by the FERC will file a comparable,
reasonable levelized annual carrying charge with the MAPP Coordination
Center for use in this calculation.
Energy Charge:
For all energy supplied hereunder, a charge per kilowatt-hour of 110
percent of the Incremental Cost of supplying such energy, for both the
energy delivered to the receiving Participant and the energy supplied
by the supplying Participant to any intervening Participant or
Participants as compensation for losses. The percentage adder components
contained in the third-party purchase and resale provisions of this rate
schedule are hereby limited to recover no more than:
i. The FERC Order 84 adder for each FERC-regulated
Participant. The FERC Order 84 adder for each FERC-regulated
Participant is shown on Appendix 6 to this Agreement. FERC-
regulated Participants shall provide the FERC and the MAPP
Coordination Center with a revised Appendix 6 whenever a change
to their Order 84 adder is filed with the FERC.
ii. A value on file at the MAPP Center for Participants not
regulated by the FERC.
3.02 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
3.03 For any Short Term Capacity which the supplying Participant
procures from electric suppliers not signatory hereto for delivery to the
receiving Participant, the receiving Participant shall pay to the supplying
Participant the cost of procuring such capacity and 110 percent of the cost
of procuring such energy, but not less than the rates specified herein, in
addition to compensation as set forth in Service Schedule "F."
Service Schedule J
Firm Power Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the sale of Firm Power by any
Participant to any other Participant. Firm Power shall mean power and
associated energy intended to be available at all times during the period
covered by a commitment. Such power shall include required reserve capacity.
Section 2.Conditions of Service
2.01 Firm Power shall be supplied through transmission facilities which
have adequate capacity for transmitting such power and energy, and
Transmission Service shall be arranged in accordance with the procedures
established under Service Schedule "F."
2.02 This Schedule shall be available for the sale of Firm Power for
a period of six months or longer.
2.03 FERC-regulated Participants who enter into transactions to sell
power under this schedule shall file the applicable agreement with the FERC
as a rate schedule.
Section 3.Schedule of Rates
3.01 The rate and term for Firm Power shall be negotiated by the
Participants to each transaction.
3.02 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
Service Schedule K
System Participation Power Interchange Service
Section 1.Service to be Provided
1.01 This Schedule provides for the sale of System Participation Power
by any Participant to any other Participant for a specified period for the
purpose of obtaining a supply of power which can be depended upon with the
same degree of assurance as that expected from the Purchaser's own generating
capacity, but which does not include reserve capacity.
Section 2.Conditions of Service
2.01 This Schedule shall be available for the sale of System
Participation Power for periods of seven or more consecutive days.
2.02 System Participation Power is intended to be available at all
times during the period covered by the commitment; provided, however, that in
the event conditions arise during the period covered by the commitment which
in the sole judgment of the supplying Participant would otherwise require
curtailment of firm power sales or service to its own customers, the supplying
Participant has the right to notify and require the receiving Participant to
reduce its take of such energy to any amount specified and for any portion of
the term of the commitment and the receiving Participant shall promptly comply
with the decision of the supplying Participant.
2.03 System Participation Power shall be included in the Accredited
Capability of a Participant only under the following conditions:
a. In an instance where it is being purchased for resale to an
electric supplier who is not a Participant.
b. In an instance where a Participant purchases power under
this schedule for a period of six consecutive months beginning
May 1 or November 1 or such other dates as are agreed to by the
Management Committee.
2.04 System Participation Power shall be supplied through transmission
facilities which have adequate capacity for transmitting such power and
energy, and Transmission Service shall be arranged in accordance with the
procedures established under Service Schedule "F".
Section 3.Schedule of Rates
3.01 The receiving Participant shall pay to the supplying Participant
for System Participation Power furnished during any period under this Schedule
an amount determined from the following schedule of rates:
Demand Charge:
For each megawatt or fraction thereof committed by the supplying
Participant, a charge per week of not more than S, where
S = C/52
where C = a value based on all Participants' current levelized annual
fixed charges per megawatt for their total thermal generating capacity
excluding cogeneration, provided however, that should delivery of System
Participation Power be curtailed by the supplying Participant, the
demand charge shall be reduced by one-sixth per megawatt of curtailment
for each day during which there is a curtailment, but such reduction
shall not exceed the demand charge for the reservation period.
For each FERC regulated Participant, the levelized annual fixed carrying
charge would be the sum of the return requirement, depreciation, income
tax, property tax and administrative and general costs. The return
requirement shall be calculated in accordance with standard FERC methods
using debt costs, preferred stock cost and a percentage rate of return
on equity, weighted in accordance with the Participant's capital ratios
at the end of the preceding calendar year. The percentage rate of
return on equity shall be the FERC benchmark rate of return on equity
percentage, which shall be filed annually with the FERC. The income tax
requirement which shall include deferred taxes, shall be calculated in
accordance with standard FERC methods using federal and state tax rates
in effect for the current year. The administrative and general costs
in column b on line 167 of page 323 of the FERC Form 1 shall be
appropriately allocated to the electric production plan and converted
to a percentage of the electric production plant investment. Appendix
4 describes the calculation of the demand charge for this Service
Schedule.
Participants not regulated by the FERC will file a comparable,
reasonable levelized annual carrying charge with the MAPP Coordination
Center for use in this calculation.
Energy Charge:
For all energy supplied hereunder, a charge per kilowatt-hour of 110
percent of the Incremental Cost of supplying such energy, for both the
energy delivered to the receiving Participant and the energy supplied
by the supplying Participant to any intervening Participant or
Participants as compensation for losses.
The percentage adder components contained in the third-party purchase
and resale provisions of this rate schedule are hereby limited to
recover no more than:
i. The FERC Order 84 adder for each FERC-regulated
Participant. The FERC Order 84 adder for each FERC-regulated
Participant is shown on Appendix 6 to this Agreement. FERC-
regulated Participants shall provide the FERC and the MAPP
Coordination Center with a revised Appendix 6 whenever a change
to their Order 84 adder is filed with the FERC.
ii. A value on file at the MAPP Coordination Center for
Participants not regulated by the FERC.
3.02 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.
3.03 For any System Participation Capacity which the supplying
Participant procures from electric suppliers not signatory hereto for delivery
to the receiving Participant, the receiving Participant shall pay to the
supplying Participant the cost of procuring such capacity at cost and such
associated energy cost at 110 percent of the cost of procuring such energy,
in addition to wheeling and loss compensation as set forth in Service Schedule
"F."
Service Schedule L
Interruptible Load Replacement Energy Service
Section 1.Services to be Provided
1.01 This Schedule provides for the supply of Interruptible Load
Replacement Energy by any Participant to any other Participant when it is
economical and practical to do so under the conditions set forth hereinafter
and in Paragraph 20.08 of this Agreement.
Section 2. Conditions of Service
2.01 It is the intent that Interruptible Load Replacement Energy may
be used by Participants to serve interruptible load when that load would
otherwise be interrupted.
a. In order to be eligible for Interruptible Load Replacement
Energy Service, the purchasing Participant must report in advance
monthly quantities of Certified Interruptible Demand.
b. The rate of delivery of energy supplied under this schedule
in any hour shall not exceed the purchasing Participant's
Certified Interruptible Demand.
c. Deliveries of energy may be received under this schedule
only when a Participant's maximum System Demand would otherwise
be greater than the Participant's forecast System Demand for the
current season and shall not exceed that required to reduce the
System Demand to the forecast System Demand.
d. Interruptible Load Replacement Energy Service shall not be
scheduled in amounts which will overload any transmission
facilities or endanger the operation of the interconnected
systems of the Participants.
e. Interruptible Load Replacement Energy Service transactions
between Participants which are directly interconnected shall
normally take precedence over transactions between Participants
not directly interconnected unless cost differential exceeds the
Operating Committee guidelines.
2.02 Transmission Service shall be available in accordance with the
procedures established under Service Schedule "F."
Section 3.Scheduling Deliveries
3.01 Prior to the scheduling of deliveries, the Participants concerned,
including the wheeling Participant or Participants, if any, will agree on
hour-by-hour amounts of energy to be delivered.
Section 4.Schedule of Rates
4.01 The overall savings of an Interruptible Load Replacement Energy
Service transaction shall be equal to the difference between the Incremental
Cost of the supplying Participant and the Displaced Cost of the receiving
Participant where Displaced Cost shall be determined as in Section 4.04
following. If the transmission facilities of a system not a party hereto is
involved in an Interruptible Load Replacement Energy transaction, any
transmission fees and losses to be paid for the use of such facilities, shall
be deducted from the overall savings of the transactions in determining the
net savings of the transactions.
4.02 The receiving Participant shall pay the supplying Participant for
the energy supplied during each month an amount equal to the Incremental Cost
of the energy so supplied, plus one-half of the overall savings of such
transactions. However, the amount paid by the receiving Participant shall not
be less than 110 percent of the supplying Participant's Incremental Cost.
4.03 When the receiving Participant's Displaced Cost equals or is lower
than the supplying Participants Incremental Cost, transactions may occur with
the price being the minimum specified in Paragraph 4.02.
4.04 The Displaced Cost per kilowatt-hour to be used under this
schedule shall be determined as the total revenues received in the prior 12
months from retail customers whose load is associated with the Interruptible
Load Replacement Energy to be purchased, divided by the kilowatt-hours of
energy supplied those customers over the same period. Participants that
supply wholesale loads which are associated with Interruptible Load
Replacement Energy to be purchased under this schedule shall utilize the
revenues received by the retail supplier(s) for the energy supplied these
customers in the computation of the Displaced Cost.
Service Schedule M
General Purpose Energy Service
Section 1.Service to be Provided
1.01 This Schedule provides for the supply of General Purpose Energy
by any Participant to any other Participant to enhance economic system
operation.
Section 2.Conditions of Service
2.01 It is the intent hereof that, insofar as is practicable, General
Purpose Energy shall be used to improve the overall economy of the systems
involved in the transactions; provided that such transactions are not
scheduled in amounts which will overload any transmission facility or endanger
the operation of the interconnected systems.
2.02 Transmission Service shall be available in accordance with the
procedures established under Service Schedule "F."
Section 3.Scheduling of Deliveries
3.01 Prior to beginning deliveries, the Participants involved will
agree on the terms of the transaction and on an hour-by-hour schedule of
energy to be delivered.
Section 4.Schedule of Rates
4.01 The receiving Participant shall pay the supplying Participant for
the General Purpose Energy supplied a charge of up to 110 percent of the
anticipated Incremental Cost of supplying such energy, plus an additional
charge per megawatt-hour of up to S/96, where
S is the weekly demand charge for System Participation Power Interchange
Service as specified in Service Schedule K, Section 3 and,
96 is the number of on-peak hours for a given week.
This additional charge shall not exceed S/6 multiplied by the highest number
of megawatt-hours delivered in any one hour during that day, where
6 is the number of days in a week containing on-peak hours.
The total charge for each transaction shall not be less than 100 percent of
the Incremental Cost of supplying the energy for the transaction.
4.02 The Transmission Service charge and losses provisions of Service
Schedule "F" shall also apply.