EXHIBIT 99.450
DESERT STAR TARIFF APPENDIX A: CONGESTION MANAGEMENT
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DESERT STAR, INC.
APPENDIX A:
CONGESTION MANAGEMENT
10/1/00 DRAFT
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OCTOBER 1, 2000 -- CLEAN (BDR) A-i
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TABLE OF CONTENTS
<Table>
A.1 CONGESTION MANAGEMENT, CONGESTION ZONES, FTR INTERFACES AND SCHEDULING POINTS ......................... 1
A.1.1 INTRODUCTION .......................................................................................... 1
A.1.2 NATURE OF TRANSMISSION SERVICE FOR USE OF FTR INTERFACES AND SCHEDULING POINTS ........................ 2
A.1.3 ELIGIBILITY FOR TRANSMISSION SERVICE FOR USE OF FTR INTERFACES AND SCHEDULING POINTS .................. 2
A.1.4 CONGESTION MANAGEMENT ................................................................................. 2
A.1.5 FTR INTERFACES AND SCHEDULING POINTS .................................................................. 3
A.1.5.1 Initial FTR Interfaces and Scheduling Points .......................................................... 3
A.1.5.2 Changes to Existing FTR Interfaces and Scheduling Points .............................................. 3
A.2 DSTAR MANAGEMENT OF INTRA-ZONAL CONGESTION ............................................................ 4
A.2.1 INTRA-ZONAL CONGESTION IN THE DAY-AHEAD SCHEDULING PROCESS ............................................ 4
A.2.2 INTRA-ZONAL CONGESTION IN THE SCHEDULE ADJUSTMENT PROCESS ............................................. 4
A.2.3 REAL-TIME INTRA-ZONAL CONGESTION ...................................................................... 4
A.2.4 ACCESS TO DSTAR CONGESTION MANAGEMENT INFORMATION ..................................................... 5
A.2.5 PAYMENT FOR INTRA-ZONAL CONGESTION MANAGEMENT ......................................................... 5
A.3 FIRM TRANSMISSION RIGHTS .............................................................................. 5
A.3.1 RELEASE OF FTRs TO THE MARKETPLACE .................................................................... 5
A.3.1.1 Release of Year-Long Blocks of FTRs ................................................................... 6
A.3.1.2 Release of Month-Long and Shorter Term (Multiple Day) Blocks of FTRs .................................. 6
A.3.1.3 Releases of Daily Blocks FTRs ......................................................................... 7
A.3.1.4 Changes to FTR Release Schedules ...................................................................... 7
A.3.2 SECONDARY MARKET TRANSFERS OF FTRs .................................................................... 7
A.3.3 SCHEDULING AND RECALL OF FTRs ......................................................................... 8
A.3.4 CURTAILMENT OF FTRs AND NCRs .......................................................................... 8
A.4 RECALLABLE TRANSMISSION RIGHTS ........................................................................ 9
A.4.1 DAILY RELEASES OF RTRs ................................................................................ 10
A.4.2 SCHEDULING AND RECALL OF RTRs ......................................................................... 10
A.4.3 CURTAILMENT OF RTRs ................................................................................... 11
A.5 NON-FIRM TRANSMISSION RIGHTS .......................................................................... 11
A.5.1 RELEASES OF NTRs ...................................................................................... 11
A.5.2 SCHEDULING AND RECALL OF NTRs ......................................................................... 12
A.5.3 CURTAILMENT OF NTRs ................................................................................... 12
A.6 DETERMINATION OF QUANTITIES OF FTRs AVAILABLE FOR AUCTION BY DSTAR .................................... 12
A.6.1 PRINCIPLES FOR CALCULATION OF FTR INTERFACE AND SCHEDULING POINT CAPABILITIES ......................... 12
A.6.2 CALCULATION OF QUANTITIES OF FTRs AVAILABLE FOR ANNUAL FTR AUCTIONS ................................... 14
A.6.2.1 Quantity Information .................................................................................. 14
A.6.2.2 Curtailment Information ............................................................................... 14
A.6.3 CALCULATION OF QUANTITIES OF FTRs AVAILABLE FOR MONTHLY AND SUB-MONTHLY FTR AUCTIONS .................. 14
A.6.4 CALCULATION OF QUANTITIES OF FTRs AVAILABLE FOR DAILY FTR AUCTIONS .................................... 14
</Table>
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<Table>
A.7 DSTAR AUCTION PROCEDURES .............................................................................. 15
A.7.1 ELIGIBLE BIDDERS ...................................................................................... 15
A.7.2 FTR AUCTION PROCEDURES ................................................................................ 15
A.7.2.1 DSTAR Actions Prior to Auction ........................................................................ 15
A.7.2.2 Bidding Procedures .................................................................................... 16
A.7.2.3 Determination of Winning Bids and FTR Clearing Price .................................................. 16
A.7.3 RTR AUCTION PROCEDURES ................................................................................ 17
A.7.4 PAYMENT BY WINNING BIDDERS ............................................................................ 17
A.8 DISTRIBUTION OF REVENUES FROM DSTAR's TRANSMISSION RIGHTS AUCTIONS .................................... 18
Attachment A-1 List of FTR Interfaces and Scheduling Points
</Table>
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APPENDIX A: CONGESTION MANAGEMENT
A.1 CONGESTION MANAGEMENT, CONGESTION ZONES, FTR INTERFACES AND SCHEDULING
POINTS
A.1.1 INTRODUCTION
a) Congestion occurs when there is insufficient transfer capacity
to simultaneously implement all of the Schedules that
Scheduling Coordinators ("SCs") submit to Desert STAR, Inc.
("Desert STAR" or "DSTAR") in the Day-Ahead Scheduling Process
or the Schedule Adjustment Process, or to simultaneously
implement in Real-Time all of the Schedules which DSTAR has
accepted. Congestion that occurs due to Transmission System
constraints within a Congestion Zone is called Intra-Zonal
Congestion. Congestion that occurs due to Transmission System
constraints on FTR Interfaces is called Inter-Zonal
Congestion.
b) A Congestion Zone is a portion of the DSTAR Grid within which
the costs of managing Congestion are expected to be
commercially insignificant (see Section A.1.5.2).
c) A Scheduling Point is a location at which the DSTAR Grid is
connected, by a transmission line or a group of transmission
lines, forming a specific transmission interface point, to
transmission facilities that are outside DSTAR's Operational
Authority.(1)
d) An FTR Interface is a transmission line or a group of
transmission lines, forming a specific transmission interface
point: (i) between two adjacent Congestion Zones of DSTAR; or
(ii) between a DSTAR Congestion Zone and an adjacent
Scheduling Point. The use of FTR Interfaces for the delivery
of Energy or Ancillary Services shall be managed by DSTAR
through the scheduling of Transmission Rights acquired by the
Eligible Customers.
e) Access to and use of FTR Interfaces and Scheduling Points
shall be managed through the use of Transmission Rights. A
Transmission Right, the right to schedule the delivery of one
(1) MW of Energy or Ancillary Services in a specific direction
across an FTR Interface or Scheduling Point for one (1) hour,
can take the following forms:
i) Firm Transmission Rights ("FTRs") - Firm physical
scheduling rights that will be auctioned on a
periodic basis, as described in Section A.3.
ii) Recallable Transmission Rights ("RTRs") -- Recallable
physical scheduling rights made available by the
non-use of FTRs and Non-Converted Rights ("NCRs"),
which can be conditionally recalled by the original
owners of the FTR, as described in Section A.4.
iii) Non-Firm Transmission Rights ("NTRs") -- Non-firm
physical scheduling rights which may be made
available by DSTAR and are subject to recall at any
time, as described in Section A.5.
- ----------
(1) Note that a Scheduling Point may be located at an "outside boundary" of the
DSTAR Grid (e.g., at the point of interconnection between the DSTAR Grid
and California or Utah), or at an "inside boundary" (e.g., at the point of
interconnection between the DSTAR Grid and a non-Participating TO). For
most practical purposes, a Scheduling Point can be considered to be a
Congestion Zone that may or may not be congested, but at which transactions
would be considered to be Wheeling In to or Wheeling Out of the DSTAR Grid.
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iv) Non-Converted Rights -- Physical transmission rights
associated with an Existing Contract ("EC") that have
not been contractually converted to DSTAR
Transmission Service, as described in this Appendix A
and in Appendix E.
A.1.2 NATURE OF TRANSMISSION SERVICE FOR USE OF FTR INTERFACES AND SCHEDULING
POINTS
a) DSTAR shall manage transmission access within, into, out of,
and through the DSTAR Grid through the use of Transmission
Rights. The nature of DSTAR Transmission Service is defined by
the terms and conditions of the DSTAR Tariff, including the
terms and conditions for the acquisition, scheduling,
curtailment and recall of Transmission Rights specified in
this Appendix A.
b) DSTAR shall honor rights under ECs, as specified in Appendix
E.
c) An SC must acquire and schedule the use of Transmission Rights
in order to schedule transmission use between pre-defined and
posted Congestion Zones within the DSTAR Grid, to schedule
transmission use into the DSTAR Grid ("Wheeling In"), and to
schedule transmission use out of the DSTAR Grid ("Wheeling
Out").
d) No Transmission Rights are required in order to schedule
Transmission Service within a Congestion Zone.
A.1.3 ELIGIBILITY FOR TRANSMISSION SERVICE FOR USE OF FTR INTERFACES AND
SCHEDULING POINTS
a) Transmission access shall be made available solely to Eligible
Customers.
b) An Eligible Customer may have or acquire FTRs, RTRs, NTRs or
NCRs. However, such Transmission Rights must be scheduled
through an SC.
c) An SC may obtain Transmission Service solely on behalf of
Eligible Customers and is entitled to schedule the use of any
necessary Transmission Rights on behalf of the owners of those
rights.
d) DSTAR shall provide transmission access to FTR Interfaces and
Scheduling Points to SCs that, acting on behalf of Eligible
Customers, have established and remain in compliance with the
DSTAR SC eligibility requirements specified in Appendix J.
A.1.4 CONGESTION MANAGEMENT
DSTAR shall use a Congestion Zone-based approach to manage
Congestion within the DSTAR Grid and to allocate use of the DSTAR
Grid, including access to a Scheduling Point.
a) The DSTAR processes for the allocation, scheduling, curtailment
and recall of Transmission Rights shall be used to eliminate
potential Inter-Zonal Congestion by ensuring that scheduled uses
of FTR Interfaces and Scheduling Points do not exceed the
transfer capability of the respective FTR Interfaces and
Scheduling Points.
b) The DSTAR processes for the redispatch of SCs' Resources shall
be used to eliminate potential Intra-Zonal Congestion by
ensuring that Schedules accepted by DSTAR do not violate any
other transmission constraints on the DSTAR Grid.
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A.1.5 FTR INTERFACES AND SCHEDULING POINTS
A.1.5.1 INITIAL FTR INTERFACES AND SCHEDULING POINTS
The initial FTR Interfaces and Scheduling Points, which have been
designated based on historical regional operating data and using the
criteria set forth in Section A.1.5.2, are set forth in Attachment A-1
to this Appendix.
A.1.5.2 CHANGES TO EXISTING FTR INTERFACES AND SCHEDULING POINTS
DSTAR shall monitor usage of the DSTAR Grid to determine whether new
FTR Interfaces or Scheduling Points should be created or whether
existing FTR Interfaces or Scheduling Points should be modified or
eliminated, in accordance with the following guidelines:
a) If, over a twelve (12) month period, DSTAR finds that the
total cost being incurred to relieve Congestion on a potential
FTR Interface (see Section A.2.3), considering only periods of
normal operation (i.e., all facilities in service) is equal to
at least five percent (5%) of the product of the average
annual transfer capability of the potential FTR Interface and
the Demand-weighted average annual Access Area Charge of the
Participating TOs, the DSTAR Board may announce its intention
to create a new FTR Interface or change the definition of an
existing FTR Interface, either of which may also result in the
creation or redefinition of Congestion Zone(s). In making its
determination as to whether or not to create or change the
definition of an existing FTR Interface, the DSTAR Board shall
also take into consideration:
i) Whether a workably-competitive Generation market
would exist on both sides of the potential FTR
Interface;
ii) Fairness and equity concerns amongst all users of the
Transmission System; and
iii) The size of the potential Congestion Zone(s) and
whether the commercial and administrative burdens
associated with the use of Transmission Rights for
the potential new FTR Interface would be warranted.
b) The DSTAR Board may also create new FTR Interfaces if it
determines that the planned addition of new Generation or Load
would result in commercially significant Congestion that would
meet the criteria specified in the preceding paragraph.
c) The DSTAR Board may also create, modify or eliminate FTR
Interfaces or Scheduling Points that result from:
i) A change in the DSTAR Grid due to a change in the
Transmission Facilities in the DSTAR Grid (e.g., the
completion of additional Transmission Facilities
between Congestion Zones or Scheduling Points, the
completion of other new Transmission Facilities, or
the elimination of existing Transmission Facilities);
ii) The withdrawal of a Participating TO from DSTAR,
which would result in the creation of additional
Scheduling Point(s) and possibly the elimination of
some existing Scheduling Points; and/or
iii) The addition of a Participating TO to DSTAR, which
would result in the elimination of existing
Scheduling Point(s) and possibly the creation of some
new Scheduling Points.
d) A change in an FTR Interface or Scheduling Point shall not
become effective prior to the longer of: (i) ninety (90) days
after the DSTAR Board has determined that a new FTR
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Interface or Scheduling Point is necessary; or (ii) the
expiration date of any FTRs that have already been sold at
auction, if the creation of a new FTR Interface or Scheduling
Point or a change in the definition of an existing FTR
Interface or Scheduling Point would affect the value or use of
such FTRs (see also Section A.3.l.4).
e) DSTAR shall publish an announcement of any proposed or pending
changes to FTR Interfaces, Scheduling Points or Congestion
Zones on the DSTAR Website at least ninety (90) days prior to
the date on which such change would be effective.
f) Nothing in this section shall limit the flexibility of DSTAR
from proposing new FTR Interfaces based on current operations
or for other reasons DSTAR deems appropriate.
A.2 DSTAR MANAGEMENT OF INTRA-ZONAL CONGESTION
A.2.1 INTRA-ZONAL CONGESTION IN THE DAY-AHEAD SCHEDULING PROCESS
DSTAR shall manage Intra-Zonal Congestion identified during DSTAR's
Day-Ahead Scheduling Process using the following procedure:
a) After receiving the Day-Ahead Schedule submittals from SCs,
DSTAR shall determine whether there is any Intra-Zonal
Congestion. If there is Intra-Zonal Congestion, DSTAR shall
eliminate it by using the voluntary Congestion Redispatch bids
submitted to DSTAR by SCs in the Day-Ahead Scheduling Process
to decrement Generating Units (or increase Dispatchable
Demand) and to increment Generating Units (or decrease
Dispatchable Demand).
b) DSTAR may reschedule SC's Resources using voluntary Congestion
Redispatch bids solely for the limited purpose of DSTAR Grid
security and shall limit its rescheduling actions to the
minimum required to eliminate the Intra-Zonal Congestion while
taking cost into account.
c) If there are insufficient voluntary Congestion Redispatch bids
to eliminate the Intra-Zonal Congestion, DSTAR may exercise
its authority to order rescheduling of Generating Units and
Dispatchable Demands. Any mandatory rescheduling of Resources
undertaken by DSTAR shall not violate the terms of ECs,
Interconnection Agreements or Generator Agreements. Payments
to the SCs for such mandatory rescheduling shall be addressed
in the Scheduling Coordinator Agreements.
A.2.2 INTRA-ZONAL CONGESTION IN THE SCHEDULE ADJUSTMENT PROCESS
DSTAR shall not accept Schedules in the Schedule Adjustment Process
which would have the effect of creating Intra-Zonal Congestion.
However, if Intra-Zonal Congestion is created during the Schedule
Adjustment Process, as the result of Transmission Facility Outages,
unscheduled flows or other Transmission System conditions, DSTAR shall
use the procedures specified in Section A.2.1 to eliminate such
Intra-Zonal Congestion.
A.2.3 REAL-TIME INTRA-ZONAL CONGESTION
In Real-Time, DSTAR shall eliminate the Intra-Zonal Congestion, in
accordance with the procedures outlined in Appendix C.
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A.2.4 ACCESS TO DSTAR CONGESTION MANAGEMENT INFORMATION
a) All DSTAR Congestion Management actions shall be auditable and
shall be made available to Market Participants upon request,
except as limited in Section A.2.4.c.
b) DSTAR shall make its Congestion Management software, to the
extent allowed by its software licenses, and database
available to the Market Participants.
c) Any Congestion Management data provided by SCs and
subsequently released by DSTAR shall recognize any
restrictions placed on DSTAR's release of commercially
sensitive/confidential information.
A.2.5 PAYMENT FOR INTRA-ZONAL CONGESTION MANAGEMENT
a) DSTAR's payments to SCs for incremental Energy for management
of Intra-Zonal Congestion and SCs' payments to DSTAR for
decremental Energy for management of Intra-Zonal Congestion,
for both voluntary and involuntary redispatch, shall be as
specified in Appendix D.
b) The costs incurred by DSTAR for the management of Intra-Zonal
Congestion shall be billed on a pro-rata basis to SCs serving
Demand in, and exporting from, the Congestion Zone
experiencing the Intra-Zonal Congestion.
A.3 FIRM TRANSMISSION RIGHTS
a) An FTR is a right to schedule the delivery of one (1) MW of
Energy or Ancillary Services in a specific direction across an
FTR Interface or Scheduling Point for one (1) hour.
b) FTRs are intended to provide Eligible Customers with a degree
of financial certainty, operational certainty and liquidity:
i) The price paid for FTRs in DSTAR's annual, monthly or
shorter-term FTR auctions or in a secondary market
shall constitute full payment for the right to
schedule Energy or Ancillary Services across an FTR
Interface or Scheduling Point.
ii) An FTR shall convey to its holder the right to
schedule Energy or Ancillary Services across a
particular FTR Interface or Scheduling Point. In
order to utilize the FTR, the scheduling requirements
detailed in Appendix B must be followed.
iii) FTRs are freely tradable in secondary markets.
A.3.1 RELEASE OF FTRS TO THE MARKETPLACE
a) FTRs shall be initially made available to Eligible Customers
through periodic auctions conducted by DSTAR. Subsequently,
FTRs may be traded through secondary markets.
b) Each individual FTR shall be uniquely identified by an
identification tag which shall specify the FTR number, the FTR
Interface or Scheduling Point, the specific flow direction and
the hour for which the FTR conveys a scheduling right.
c) DSTAR shall develop a standardized transfer of ownership
receipt for use when trading FTRs in the secondary market. The
intent of the receipt it to specify the current owner of the
Transmission Right and it will not require submittal of any
financial information. On the standardized receipt, Eligible
Customers can indicate which SC they have designated for
scheduling their Transmission Rights.
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d) DSTAR shall maintain an updated list of Transmission Rights
ownership in a DSTAR database for use in the Balanced
Schedules validation processes in Appendix B.
e) DSTAR does not need to be informed of every FTR trade in the
secondary market. However, Eligible Customers who want their
secondary trades recognized by DSTAR, must notify DSTAR of the
final ownership transfers prior to the start of the Day-Ahead
Scheduling Process by submitting a standardized transfer of
ownership receipt.
f) Eligible Customers who submit standardized transfer of
ownership receipts to DSTAR may indicate if the information
may be posted by DSTAR on the DSTAR Website or if it is solely
for use by DSTAR for FTR ownership validation as part of the
Day-Ahead Scheduling Process and Schedule Adjustment Process.
g) During the validation portion of the Day-Ahead Scheduling
Process and the Schedule Adjustment Process, DSTAR will
perform a check to assure that the SCs that schedule
Transmission Rights are the current owner or designated SC of
record.
A.3.1.1 RELEASE OF YEAR-LONG BLOCKS OF FTRS
a) At least sixty (60), but not more than seventy-five (75), days
prior to the start of each calendar year, DSTAR shall conduct
an annual auction of blocks of FTRs for each FTR Interface and
Scheduling Point. FTRs sold at the annual auction shall be
sold in blocks which shall convey the right to schedule the
use of a specific FTR Interface or Scheduling Point in a
specific direction for every hour of the calendar year.
b) The initial annual release of FTRs by DSTAR shall take place
at least sixty (60) days prior to the DSTAR Operations Date.
The FTRs released through this initial auction shall be sold
in blocks which shall convey the right to schedule the use of
a specific FTR Interface or Scheduling Point in a specific
direction for every hour starting with the first hour of the
DSTAR Operations Date and ending with the last hour of the
first calendar year.
c) For each FTR Interface and Scheduling Point, DSTAR shall first
use the procedures specified in Section A.6 to calculate the
maximum number of year-long blocks of FTRs that can be made
available for release. For each FTR Interface and Scheduling
Point, a portion of the year-long blocks of FTRs shall be
released through the annual auction (see Section A.6.2). The
remaining portion of the year-long blocks, plus any additional
FTRs that may become available due to seasonal variations in
transfer capacity, will be distributed through periodic
auctions as described in Section A.6.
d) 2. DSTAR shall publish all information that is commercially
relevant to the annual auction, including but not limited to
the quantities of FTRs to be made available through the
auction and the auction procedures, on the DSTAR Website at
least thirty (30) days prior to the auction.
A.3.1.2 RELEASE OF MONTH-LONG AND SHORTER TERM (MULTIPLE DAY) BLOCKS OF FTRS
a) At least thirty (30), but not more than forty-five (45), days
prior to the start of each month, DSTAR shall conduct a
monthly auction of blocks of FTRs for each FTR Interface and
Scheduling Point. FTRs sold at the monthly auction shall be
sold in blocks which shall convey the right to schedule the
use of a specific FTR Interface or Scheduling Point in a
specific direction for every hour of the calendar month.
b) For each FTR Interface and Scheduling Point, DSTAR shall use
the procedures specified in Section A.6.2 to calculate the
maximum number of month-long blocks of FTRs that can be
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made available for release. All of these FTRs shall be
released through the monthly auction.
c) DSTAR shall publish all information that is commercially
relevant to the monthly auction, including but not limited to
the quantities of FTRs to be made available through the
auction and the auction procedures, on the DSTAR Website at
least fifteen (15) days prior to the auction.
d) Because Operating Transfer Capability ("OTC") may increase
during a month due to changes in system conditions, DSTAR may
also conduct auctions for blocks of FTRs that can be made
available for a portion of a month. Blocks of FTRs sold at
such auctions shall convey the right to schedule the use of a
specific FTR Interface or Scheduling Point in a specific
direction for the specified hours of the calendar month.
A.3.1.3 RELEASES OF DAILY BLOCKS FTRS
Two (2) days prior to the Trading Day, for each FTR Interface and
Scheduling Point, DSTAR shall conduct auctions of any remaining FTRs
that can be made available for that Trading Day. FTRs will be made
available through such auctions on an individual hourly basis. Each FTR
shall convey the right to schedule the use of a specific FTR Interface
or Scheduling Point in a specific direction for a specific hour of that
Trading Day.
A.3.1.4 CHANGES TO FTR RELEASE SCHEDULES
a) Within twenty-four (24) months of the DSTAR Operations Date
and upon feedback from the Market Participants, DSTAR shall
provide a report to the DSTAR Board which shall explore the
development of a methodology to conduct auctions of
longer-term (multi-year) and/or seasonal (multi-month) blocks
of FTRs. Prior to implementation of such a methodology, the
methodology shall be filed with the Commission for approval.
b) The DSTAR Board may, upon suitable notice published on the
DSTAR Website, change the allocations of FTRs designated for
release through subsequent multi-year, annual, seasonal and/or
monthly auctions; provided that all FTRs that can be made
available in blocks of one-month or longer shall be released
through such auctions.
c) Upon the creation of longer-term FTRs, DSTAR shall develop
appropriate procedures for the reconfiguration of existing
FTRs to recognize the requirements of Section A.1.5.2.d.
A.3.2 SECONDARY MARKET TRANSFERS OF FTRS
a) The purchaser of an FTR may assign, sell, transfer ownership
of, or transfer the right to schedule the use of, an FTR, a
block of FTRs, or any portions of a block of FTRs, to any
Eligible Customer.
b) DSTAR accepts limited responsibility for tracking the
ownership of FTRs that have traded hands in secondary markets,
and expressly assumes no liability for any damages resulting
from disputes that arise over the right to schedule the use of
FTRs. DSTAR's role and liability in disputes regarding the
right to schedule the use of FTRs shall be limited to that
specified in Section A.3.1 (i.e., the use of information that
has been reported to DSTAR using the standardized transfer of
ownership receipts).
c) DSTAR shall not operate a secondary market in FTRs. However,
to facilitate the secondary markets in FTRs, DSTAR shall post
the identities of the current FTR holders on the DSTAR Website
as specified in Section A.3.1 for those SCs authorizing such
posting.
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d) All purchasers and sellers of FTRs shall retain, for each FTR
Interface or Scheduling Point, records of the quantities of
FTRs purchased or sold through secondary markets, for a period
of one (1) year following the FTR's specific Settlement
Period. Such records shall be made available to DSTAR upon
request, pursuant to Appendix H, Market Monitoring.
e) Any Eligible Customer that holds the rights to schedule the
use of more than 20% of the FTRs that have been released to
auction on an FTR Interface or Scheduling Point at the end of
two (2) consecutive Calendar Days shall report, by the end of
the third Calendar Day, this position to DSTAR.
A.3.3 SCHEDULING AND RECALL OF FTRs
a) To schedule the next-day use of an FTR Interface or Scheduling
Point, the SC representing the holder of an FTR must, by the
times specified in Appendix B: (i) inform DSTAR of the FTR
holder's intention to schedule use of the FTR; and (ii) submit
the scheduling information required in the Day-Ahead
Scheduling Process.
b) If the use of an FTR is not scheduled during the Day-Ahead
Scheduling Process, DSTAR shall make the FTR available for use
by other SCs for the next day on a recallable basis through
the auctioning of RTRs. However, an FTR holder may still
schedule the use of the FTR during the Schedule Adjustment
Process, at any time up to sixty (60) minutes prior to the
close of the Schedule Adjustment Process (i.e., until two (2)
hours prior to the start of the Settlement Period). In such an
event, DSTAR may recall an FTR that was made available on a
recallable basis.
c) Mismatches between the FTR quantities SCs report as intended
to be scheduled and what actually gets scheduled shall be
reported to DSTAR's Market Monitoring Unit, as will the use of
FTRs in the Day-Ahead Scheduling Process whose use is
subsequently withdrawn in the Schedule Adjustment Process.
A.3.4 CURTAILMENT OF FTRS AND NCRS
a) In the event that the OTC of an FTR Interface or Scheduling
Point is reduced, DSTAR may curtail FTR holders' rights to
schedule the use of the FTR Interface or Scheduling Point as
described below:
i) In allocating reductions in the transfer capability
of an FTR Interface or Scheduling Point, DSTAR shall
first cut the non-firm service to the holders of
NTRs. Note: Following the close of the Schedule
Adjustment Process, RTRs have the same curtailment
priority as FTRs.
ii) DSTAR shall then allocate any additional reductions
required between NCRs and any other transfer
capability in accordance with the relative priorities
established by the terms of the associated ECs.
iii) If the OTC reduction will impact the current Trading
Day or the following Trading Day, any NTRs that have
already been allocated shall be curtailed in
accordance with Section A.5.3.
iv) Any remaining transfer capability reductions shall be
assigned to the FTRs associated with the affected FTR
Interface or Scheduling Point. Such reductions will
be allocated to all FTRs for the FTR Interface or
Scheduling Point on a pro-rata basis rounded to the
nearest whole MW.
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b) DSTAR shall issue notices of curtailments of Transmission
Rights through the DSTAR Website and Electronic Information
System ("EIS"). Upon such notice, the rights and obligations
of FTR holders affected by curtailments are as follows (Note:
The following process is also used for curtailed RTRs, Section
A.4.3, and curtailed NTRs, Section A.5.3):
i) Should the notice be issued at least two (2) hours
before the deadline for the submittal of Schedules in
the Day-Ahead Scheduling Process:
(1) The FTR holder's right to schedule the
delivery of Energy or Ancillary Services
across the FTR Interface or Scheduling Point
on the following Trading Day or beyond shall
be reduced; and
(2) The Balanced Schedules that are submitted by
affected SCs in the Day-Ahead Scheduling
Process must reflect such reductions.
ii) Should the notice be issued less than two (2) hours
before the deadline for the submittal of Schedules in
the Day-Ahead Scheduling Process, but at least sixty
(60) minutes before the close of the Schedule
Adjustment Process for a given Settlement Period:
(1) The FTR holder's right to schedule the
delivery of Energy or Ancillary Services
across the FTR Interface or Scheduling Point
shall be reduced;
(2) The affected SCs may submit Schedules to
reflect the curtailment using the remaining
time in the Day-Ahead Scheduling Process; or
(3) The affected SCs may submit their Schedules
in the Day-Ahead Scheduling Process as if no
notice had been issued, but must adjust
their Schedules to reflect the curtailment,
using the Schedule Adjustment Process.
iii) Should the notice be issued less than sixty (60)
minutes before the close of the Schedule Adjustment
Process for a given Settlement Period:
(1) The FTR holder's right to schedule the
delivery of Energy or Ancillary Services
across the FTR Interface or Scheduling Point
shall be reduced;
(2) The affected SCs may submit Schedules to
reflect the curtailment using the remaining
time in the Schedule Adjustment Process; or
(3) The affected SCs may continue to use their
latest Schedules in the upcoming Settlement
Period as if no notice had been issued;
(4) The affected SCs shall respond to DSTAR's
Dispatch Instructions; and
(5) For the purpose of calculating the portion
of the SC's hourly Energy imbalance that
would be subject to penalties for excessive
Energy imbalances, DSTAR shall increase the
penalty thresholds to reflect the amount of
Energy associated with the curtailed FTR, as
described in Appendix D.
A.4 RECALLABLE TRANSMISSION RIGHTS
An RTR is a right to schedule, subject to recall by DSTAR up to two (2)
hours prior to the start of the Settlement Period, one (1) MW of Energy
or Ancillary Services in a specific direction across an FTR Interface
or Scheduling Point for one (1) hour for that Settlement Period of the
following day.
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A.4.1 DAILY RELEASES OF RTRS
a) Every day, for each FTR Interface and Scheduling Point, DSTAR
shall conduct an auction of the RTRs that can be made
available for the following day.
b) For each FTR Interface and Scheduling Point, the quantity of
RTRs that can be made available by DSTAR shall equal the sum
of:
(1) The quantity of FTRs which have not been purchased in
DSTAR's previous auctions;
(2) The quantity of purchased FTRs whose use has not been
scheduled by the 0900 deadline of the Day-Ahead
Scheduling Process; and
(3) The number of NCRs whose use has not been scheduled
by the deadlines in the first stages of the Day-Ahead
Scheduling Process (i.e., the morning of the day
prior to the Trading Day), and whose release on a
recallable basis is not prohibited by the associated
EC, and only to the extent that they are consistent
with the recall and firmness qualities of other RTRs.
c) An SC that acquires an RTR must ensure that the RTR is
scheduled in the Day-Ahead Scheduling Process or the Schedule
Adjustment Process. SCs who fail to schedule the use of an RTR
shall be reported to the Market Monitoring Unit.
d) Any RTRs not sold at DSTAR's daily auction shall be made
available at no charge on a first-come, first-served basis
through the DSTAR Website.
e) SC acquisitions of RTRs through the DSTAR Website, as
described in sub-section (d) above, shall be time-stamped.
f) Each RTR shall be uniquely identified through an
identification tag which shall specify the RTR number, the FTR
Interface or Scheduling Point and direction, the Settlement
Period for which the RTR conveys a scheduling right, and the
purchase price of the RTR.
A.4.2 SCHEDULING AND RECALL OF RTRS
a) To schedule the use of an FTR Interface or Scheduling Point
through the use of an RTR, the SC representing the holder of
an RTR must submit the scheduling information required by the
Day-Ahead Scheduling Process or Schedule Adjustment Process.
b) DSTAR shall recall an RTR only when the holder of an FTR or
NCR that was not scheduled during the Day-Ahead Scheduling
Process subsequently schedules the use of the FTR or NCR for a
particular Settlement Period, no later than one (1) hour prior
end of the Schedule Adjustment Process for that Settlement
Period, and such unscheduled FTR or NCR was released as an
RTR.
c) DSTAR shall select RTRs for recall based on the prices at
which the RTRs were sold in the daily RTR auction, with the
RTRs which were purchased for the lowest price in the lower
curtailment priority classes recalled first.
i) RTRs that were acquired at no charge on a first-come,
first-served basis from the DSTAR's Website will be
recalled first, on a last-acquired, first-recalled
basis.
ii) If only part of a group of identically-priced RTRs
must be recalled, the recall within that group will
be made on a pro-rata basis.
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d) An SC whose RTR has been recalled must submit its revised
Schedule no later than sixty (60) minutes prior to the start
of the Settlement Period associated with the recalled RTR.
e) If an RTR has not been recalled by one (1) hour prior to the
close of the Schedule Adjustment Process, DSTAR's right to
recall the RTR shall be extinguished and the RTR shall be
deemed to be firm and non-recallable for that Settlement
Period.
f) If an RTR is recalled, the RTR holder shall be entitled to a
refund of the RTR purchase price.
A.4.3 CURTAILMENT OF RTRS
RTRs are treated like FTRs in the curtailment process after the close
of the Schedule Adjustment Process pursuant to Section A.3.4.
A.5 NON-FIRM TRANSMISSION RIGHTS
a) An NTR is a right to schedule, subject to recall by DSTAR at
any time, one (1) MW of Energy or Ancillary Services in a
specific direction across an FTR Interface or Scheduling Point
for one (1) hour.
b) NTRs shall initially be made available to SCs on a next-day,
first-come, first-served basis through the DSTAR Website.
DSTAR may, at a future date and upon approval of the DSTAR
Board and the Commission, develop a process for the sale of
NTRs.
A.5.1 RELEASES OF NTRS
a) Every day, for each FTR Interface and Scheduling Point, DSTAR
shall determine, at various times throughout the day as
described in Appendix B, the quantities of NTRs that can be
made available for the following day and shall publish this
information on the DSTAR Website. Each NTR shall have a term
of one (1) hour and shall convey the right to schedule the use
of a specific FTR Interface or Scheduling Point in a specific
direction for that Settlement Period of the following day.
b) The quantity of NTRs that will be made available for an FTR
Interface and Scheduling Point by DSTAR shall be equal to the
sum of: (i) the MW of counterflows scheduled on the FTR
Interface or Scheduling Point; (ii) the MW of Operating
Reserves scheduled on the FTR Interface or Scheduling Point;
and (iii) the MW of NCRs for which the holder of the NCR
retains the right to submit Schedules after the close of the
Schedule Adjustment Process' deadline for the recall of RTRs
and whose use has not been scheduled by the deadlines in the
Day-Ahead Scheduling Process and/or Schedule Adjustment
Process, and whose release on a non-firm basis is not
prohibited by the associated EC, and only to the extent that
they are consistent with the recall and firmness qualities of
other NTRs.
c) NTRs will be made available for use at no charge on a
first-come, first-served basis through the DSTAR Website. SC
acquisitions of NTRs shall be time stamped.
d) An SC that acquires an NTR must ensure that the NTR is
scheduled in the Day-Ahead Scheduling Process or the Schedule
Adjustment Process. SCs who fail to schedule the use of an NTR
shall be reported to the Market Monitoring Unit.
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e) Each NTR shall be uniquely identified through an
identification tag which will specify the NTR number, the FTR
Interface or Scheduling Point, the specific direction and the
Settlement Period for which the NTR conveys a scheduling
right.
A.5.2 SCHEDULING AND RECALL OF NTRS
a) To schedule the next-day use of an FTR Interface or Scheduling
Point, the SC representing the holder of an NTR must submit
the scheduling information required by the Day-Ahead
Scheduling Process or the Schedule Adjustment Process.
b) DSTAR may recall NTRs if counterflow Schedules are cancelled,
Operating Reserves are called upon by DSTAR, or NCR scheduling
rights are exercised.
c) DSTAR shall recall NTRs on a last-acquired, first-recalled
basis.
d) If an NTR is recalled, the timing provisions of Section A.3.4
and A.5.3 apply.
A.5.3 CURTAILMENT OF NTRS
a) If the OTC associated with an FTR Interface or Scheduling
Point must be reduced for a Settlement Period, NTRs that have
been acquired, but not yet scheduled by SCs, will be curtailed
first.
b) NTRs that have been scheduled by SCs will be curtailed next,
based on the time that the NTR was acquired from the DSTAR
Website, with the most-recently acquired NTRs curtailed first.
c) DSTAR shall issue notices of curtailments of Transmission
Rights through the DSTAR Website. Upon such notice, the rights
and obligations of NTR holders affected by curtailments are
treated like FTRs in the curtailment process after the close
of the Schedule Adjustment Process pursuant to Section A.3.4.
A.6 DETERMINATION OF QUANTITIES OF FTRS AVAILABLE FOR AUCTION BY DSTAR
The quantities of FTRs that can be made available for auction on an
annual, monthly, sub-monthly and daily basis shall be determined by
DSTAR using the following methodology.
A.6.1. PRINCIPLES FOR CALCULATION OF FTR INTERFACE AND SCHEDULING POINT
CAPABILITIES
a) The calculation of the OTC for each FTR Interface and
Scheduling Point shall be performed by DSTAR, in coordination
with the Participating TOs, using the procedures specified in
Attachment 4 of the DSTAR Tariff (Transmission Planning and
Expansion) and the Western Systems Coordinating Council's
("WSCC's") transmission path rating methodology. Each
Participating TO shall provide to DSTAR any data in the
possession of the Participating TO that DSTAR may require to
perform the OTC calculations.
b) If an initial or proposed FTR Interface or Scheduling Point
has not received a WSCC-approved rating, a rating shall be
determined using a methodology that is consistent with the
WSCC's path rating methodology.
c) DSTAR shall have the ultimate responsibility for the
determination of OTC, including specification of the criteria
and methodologies for the calculation of OTC, and
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responsibility for oversight and confirmation of any studies
performed on its behalf by the Participating TOs.
d) DSTAR shall calculate OTC and the quantities of available
FTRs. The amount of FTRs made available shall be the OTC less
the transmission capacity required to serve the NCRs.
e) Where there is latitude in the interpretation of the
guidelines for the calculation of OTC, DSTAR shall approve
specific procedures and policies for determining OTC.
f) Where specific procedures or methodologies must be developed
or put into place regarding the calculation of OTC (for
example, in cases in which FTR Interface or Scheduling Point
capabilities may be interdependent and/or rely upon
assumptions regarding internal Generation, imports and
exports), DSTAR shall be responsible for the development and
implementation of such procedures or methodologies, consistent
with the processes specified in Attachment 4 of the DSTAR
Tariff (Transmission Planning and Expansion).
g) Where special restrictions must be placed on the quantities of
FTRs that are made available by DSTAR (for instance, in
situations in which the OTC is not constant, but may vary from
hour-to-hour, resulting in quantities of FTRs that may vary by
seasons, months, or hours), DSTAR shall determine the nature
and quantities of FTRs that can be made available for such FTR
Interfaces or Scheduling Points, with the objective of
maximizing the commercial value of the FTR product to the
marketplace.
h) DSTAR shall make available, through the DSTAR Website, the
procedures and methodologies used for the determination of the
capabilities of the FTR Interfaces and Scheduling Points.
i) Any party may request from DSTAR, and DSTAR shall provide
within the constraints of confidentiality requirements,
information sufficient to enable independent computation of
OTC.
j) The amounts of capacity on FTR Interfaces or Scheduling Points
that must be reserved for NCRs shall be determined in
accordance with the NCR Instructions provided in accordance
with Appendix E, and these amounts shall be published on the
DSTAR Website. The Participating TOs shall also document any
special scheduling, curtailment or operating instructions in
the NCR Instructions to be provided to the DSTAR in accordance
with Appendix E, for publication on the DSTAR Website.
k) In the event that any party disputes DSTAR's calculations of
OTC, or a Participating TO's reservations for NCRs, DSTAR, the
Participating TO and the other parties to the dispute shall
attempt to resolve the dispute using the DSTAR ADR process.
l) If DSTAR, Participating TOs and/or other parties are unable to
agree on either the procedures for the calculation of OTC, or
reservations for NCRs, or the actual OTC, or reservations for
NCRs, DSTAR's determinations shall be used pending final
resolution of the dispute through the DSTAR's ADR process and
the Commission appeal process; except that:
i) If the disagreement is based on the Participating
TO's claim that use of the DSTAR's determination
would jeopardize the safety, security or adequacy of
the Transmission System; or
ii) If the disagreement is based on the interpretation of
the amount of capacity that must be reserved for
NCRs; then
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iii) The Participating TO's determination shall be used
pending final resolution of the dispute through the
DSTAR's ADR process and the Commission appeal process
or, in the case of a dispute over NCRs, the dispute
resolution process in the applicable EC.
A.6.2 CALCULATION OF QUANTITIES OF FTRS AVAILABLE FOR ANNUAL FTR AUCTIONS
A.6.2.1 QUANTITY INFORMATION
For any partial calendar year for the first full calendar year after
the DSTAR Operations Date and for each FTR Interface and Scheduling
Point, the quantity of FTRs that shall be auctioned by DSTAR for such
full calendar year and partial calendar year, if applicable, shall be
seventy-five percent (75%) of the lowest of the seasonal OTCs for the
FTR Interface or Scheduling Point, calculated using the procedures
described above, minus the amount of FTR Interface or Scheduling Point
transfer capability that must be reserved for the scheduling of NCRs.
For subsequent calendar years, the DSTAR Board has the discretion to
modify the percentages released in each auction, but under no
circumstances will the percentage released for the annual (or longer)
rights auctions be less than fifty percent (50%).
A.6.2.2 CURTAILMENT INFORMATION
For FTR auctions prior to and during the first year after the DSTAR
Operations Date, and for the first year after creation of a new FTR
Interface or Scheduling Point, the expected curtailment frequency of
FTRs by FTR Interface and Scheduling Point shall be estimated by DSTAR
on a non-binding basis and posted on the DSTAR Website. Actual
curtailments will be posted on the DSTAR Website. The DSTAR Board may
elect to not provide the curtailment estimates after the first year
after the DSTAR Operations Date for the initial FTR Interfaces and
Scheduling Points or after the first year after the creation of a new
FTR Interface or Scheduling Point. The DSTAR Board shall review the
appropriateness of the ongoing posting of curtailment estimates. DSTAR
assumes no liability associated with the accuracy of these curtailment
estimates.
A.6.3 CALCULATION OF QUANTITIES OF FTRs AVAILABLE FOR MONTHLY AND SUB-MONTHLY
FTR AUCTIONS
For each FTR Interface and Scheduling Point, the quantity of FTRs that
shall be auctioned by DSTAR on a monthly basis shall be the applicable
monthly OTC for the FTR Interface or Scheduling Point for the month
under study, calculated using the procedures described above, minus the
amount of FTR Interface or Scheduling Point transfer capability that
must be reserved for the scheduling of NCRs, minus the quantity of FTRs
that have been sold in the annual auction.
A.6.4 CALCULATION OF QUANTITIES OF FTRS AVAILABLE FOR DAILY FTR AUCTIONS
Two days prior to the Trading Day, for each FTR Interface and
Scheduling Point, the quantity of FTRs that shall be auctioned by DSTAR
shall be the appropriate daily OTC for the FTR Interface or Scheduling
Point for each Settlement Period, calculated using the procedures
described above, minus the amount of FTR Interface or Scheduling Point
transfer capability that must be reserved for the scheduling of NCRs,
minus the quantities of FTRs that have been sold in the annual, monthly
and sub-monthly FTR auctions.
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A.7 DSTAR AUCTION PROCEDURES
DSTAR shall conduct the Transmission Rights auctions or contract for
the services of an auction agent which shall conduct such auctions
using the processes described below. The costs of administering the FTR
and RTR auctions shall be recovered through the DSTAR Administrative
Charge.
A.7.1 ELIGIBLE BIDDERS
a) Any Eligible Customer may acquire FTRs or RTRs by bidding in
the DSTAR's auctions of FTRs and RTRs or by purchasing FTRs or
RTRs in secondary markets, provided, however, that a
Participating TO may participate in the auctions only if it
retains load serving responsibility pursuant to the
requirements of its appropriate jurisdictional entity, and
provided that the appropriate functional separation and code
of conduct are in place and approved by the Commission or
other appropriate regulatory authority.
b) To participate in DSTAR's auctions of FTRs and RTRs, a bidder
must meet DSTAR-specified creditworthiness requirements. These
requirements shall be consistent with the SC creditworthiness
standards listed in Appendix J (Scheduling Coordinator
Application and Certification), for the appropriate credit
levels associated with the purchase of FTRs and RTRs, and
applied in a non-discriminatory manner. A bidder may not offer
bids whose total value exceeds the creditworthiness which
DSTAR has established for the bidder. The level of
creditworthiness required by DSTAR will take in to
consideration the effects of net billing as defined in
Appendix G (Settlements and Billings).
c) A bidder must have access to the computer hardware, software
and communications equipment required to participate in
DSTAR's auctions.
A.7.2 FTR AUCTION PROCEDURES
DSTAR's annual, monthly, sub-monthly and daily auctions of FTRs shall
be single-round, single clearing price auctions. The auctions for each
of the FTR Interfaces and Scheduling Points shall be conducted
simultaneously, but separately and independently. Each auction of FTRs
shall be conducted as follows.
A.7.2.1 DSTAR ACTIONS PRIOR TO AUCTION
DSTAR shall post the following information on the DSTAR Website:
a) The number of FTRs (in year-long blocks, month-long blocks,
sub-month-long blocks, or individual Settlement Periods, as
appropriate for the particular auction) to be issued for each
FTR Interface and Scheduling Point, and any special terms,
conditions, curtailment requirements, or other restrictions on
the use of the FTRs which might have commercial significance.
b) The date and time prior to the commencement of the auction by
which each bidder must have satisfied the necessary financial
certification requirements.
c) The specifications for the technical equipment necessary to
participate in the auction.
d) The date and time by which bids must be submitted, which shall
be the same for all FTR Interfaces and Scheduling Points.
e) The form and format in which bids must be submitted.
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f) Any other information of commercial significance to bidders in
the auction, including detailed descriptions of the bidding
rules and mechanics of the software used to clear each FTR
market.
g) DSTAR shall post this information at least:
i) Thirty (30) days prior to the auction, in the case of
the annual auctions.
ii) Fifteen (15) days prior to the auction, in the case
of the monthly auctions.
iii) Five (5) days prior to the auction, in the case of
subsequent auctions within a month.
iv) Two (2) hours prior to the auction, in the case of
the daily auctions.
A.7.2.2 BIDDING PROCEDURES
For each FTR Interface and Scheduling Point:
a) A bidder must specify:
i) The number of FTRs the bidder desires to purchase;
ii) The maximum price per FTR (in $/FTR) that the bidder
is willing to pay for those FTRs; or the designation
"Price Taker" (i.e. those entities willing to pay
whatever the FTR Market Clearing Price is).
iii) Whether it is acceptable for DSTAR to fulfill part of
the bid, or whether the bid is submitted on an
"all-or-none" basis.
b) A bidder may submit multiple bids, thereby establishing a
"price-quantity" curve.
c) Bids may be submitted and then revised up until the auction
deadlines as specified in Appendix B.
d) Before, during and after the auction process, DSTAR shall
treat all bids as confidential.
A.7.2.3 DETERMINATION OF WINNING BIDS AND FTR CLEARING PRICE
For each FTR Interface and Scheduling Point:
a) All bids received by DSTAR shall be stacked in the order of
highest bid to lowest bid with the Price Taker bids deemed to
be the highest.
b) The winning bids shall be determined by moving up the stack
from the highest bid to the lowest bid, until the cumulative
quantity of FTRs associated with these bids (the "winning
bids") is greater than or equal to the total number of FTRs
available, or all bids have been satisfied.
c) If the last winning bid is an "all-or-none" bid that can not
be completely honored, that bid shall be rejected and removed
from the stack.
d) The FTR Clearing Price for each separate FTR Interface and
Scheduling Point shall be the price of the first winning bid
that could not be completely accepted by the DSTAR for that
FTR Interface or Scheduling Point. That is, the FTR Clearing
Price for all FTRs for a particular FTR Interface or
Scheduling Point is the price that would have been paid had
the DSTAR been able to auction one additional FTR.
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e) In the event that there are multiple bids with prices equal to
the FTR Clearing Price, each of those bids shall be awarded a
pro-rata share of the FTRs that remain after FTRs have been
allocated to higher price bids, with the result that any
"all-or-nothing" bids at that price will be removed from the
stack (which could result in all other bids being satisfied).
f) It is not intended that a price cap be established in the FTR
auction process. However, in the event that such a price cap
is established (for example, for software reasons or as a
result of regulatory rulings) and the quantity of bids for
FTRs at the price cap exceeds the number of FTRs available for
auction, priority shall be granted to the representatives of
those Historical Users and holders of ECs that have been
converted to DSTAR Transmission Service who are participating
in the auction and who have bid via the Price Taker mechanism.
g) In the event that the demand for FTRs is less than the
quantity of FTRs that is available, the FTR Clearing Price
shall be the price of the last winning bid.
h) In the event that the only satisfied bids are Price Taker
bids, the deemed FTR Clearing Price shall be $10,000/FTR.
Additionally, entities with the Historical Use and/or
converted EC designation shall be awarded their Historical Use
and/or EC share of FTRs prior to entities without such a
designation, in accordance with sub-section f) above.
As a consequence of this process:
a) All Price Taker bids and all bids with bid prices greater than
the FTR Clearing Price will be accepted.
b) All bids with bid prices less than the FTR Clearing Price will
be rejected.
c) Bids with bid prices equal to the FTR Clearing Price will
either be accepted, rejected (if they are "all-or-none" bids)
or possibly only partially accepted.
d) DSTAR shall announce the results of the auction simultaneously
to all bidders, by posting on the DSTAR Website, for each FTR
Interface and Scheduling Point, the quantities of FTRs awarded
to each bidder and the FTR Clearing Price for each FTR
Interface and Scheduling Point.
A.7.3 RTR AUCTION PROCEDURES
The daily RTR auctions shall be identical to the FTR auctions, except
that:
a) Information regarding the quantities of RTRs available for
each hour of the next Trading Day shall be posted by DSTAR
approximately twenty-five (25) minutes in advance of the
auction, promptly after the SCs have indicated their
intentions regarding the scheduling of FTRs for the next
Trading Day.
b) There are no Price Taker designations for the RTR auction.
c) The price paid for each RTR shall be the bidder's bid price
(i.e., there will not be a single RTR clearing price).
A.7.4 PAYMENT BY WINNING BIDDERS
a) For each FTR Interface and Scheduling Point, each winning bidder in an
FTR auction shall pay DSTAR an amount equal to the quantity of FTRs
awarded to that bidder multiplied by the FTR Clearing Price.
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b) For each FTR Interface and Scheduling Point, each winning
bidder in an RTR auction shall pay DSTAR an amount equal to
the quantities of RTRs awarded to that bidder multiplied by
the bidder's price bids for each of the RTRs.
c) Winning bidders shall pay the amounts stated above in
accordance with the requirements of Appendix G.
A.8 DISTRIBUTION OF REVENUES FROM DSTAR'S TRANSMISSION RIGHTS AUCTIONS
a) For each FTR Interface and Scheduling Point, DSTAR shall
credit, on a per MW basis, the proceeds of the FTR auctions,
to the SCs representing: (i) the Historical Users of the FTR
Interface or Scheduling Point; and (ii) the holders of ECs
that have been converted to DSTAR Transmission Service. Any
remaining FTR auction revenues and all RTR auction revenues
will be credited to the Participating TOs for crediting
against their Annual Transmission Revenue Requirements
("ATRRs").
b) Prior to the initial DSTAR Operations Date, each FTR Interface
and Scheduling Point will be studied to determine the baseline
Historical Use, in MW, of the path. The Historical Use of each
path will be the determining factor in the percentage
allocation of FTR auction revenues. For example, if an entity
historically uses seventy-five percent (75%) of a specific FTR
Interface or Scheduling Point to serve its retail load prior
to the DSTAR Operations Date, then that entity shall receive
seventy-five percent (75%) of the FTR auction revenue proceeds
for that path.
c) The Historical Use allocation percentages shall remain in
place for ten (10) years or until such time as State
jurisdictional retail open access plans allow competition for
customers and Transmission Rights. Each retail open access
process shall determine the method by which competitors gain
access to the Transmission System, including the DSTAR Grid.
DSTAR shall credit FTR auction revenues in accordance with any
re-allocation methodology that results from such a process. In
the absence of a State determined reallocation methodology,
DSTAR will shall credit FTR auction revenues that result from
the Historical Use allocation percentages on a pro-rata basis
to the SCs representing the Load in the service territory that
produced the Historical Use allocation percentages.
d) The allocation of auction revenues to the holders of ECs shall
remain in place for the longer of the stated term of the
converted EC or ten (10) years. If Transmission Rights under
an EC have been converted to FTRs and such converted FTRs are
completely equivalent to FTRs not resulting from conversion of
ECs, those rights shall be made available to the DSTAR FTR
auctions. In such case, DSTAR shall credit a pro-rata share of
the auction proceeds to the party(ies) who converted their EC
rights. Each party's prorata share of the auction revenues
shall be equal to the number of FTRs on the FTR Interface or
Scheduling Point that were made available on an annual basis
by the converted EC, divided by the total number of FTRs
auctioned on an annual basis for the FTR Interface or
Scheduling Point, multiplied by auction proceeds for that FTR
Interface or Scheduling Point.
NOTE: Section A.7.2.3 above defines an onerous default FTR
Clearing Price for auctions where Price Taker bids exceed the
quantity of FTRs available. This default price is designed to
incite bidders to bid the true value for an FTR. If an entity
without the Historical Use or converted EC designation chooses
to use the Price Taker Option, it could conceivably be
obligated to purchase the FTRs at this default price without
receiving any revenue credits for Historical Use or converted
EC in return.
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OCTOBER 1, 2000 -- CLEAN (BDR) A-18
DESERT STAR TARIFF APPENDIX A: CONGESTION MANAGEMENT
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e) All Eligible Customers shall have the ability to bid as a
Price Taker in the FTR auctions. However, in the event that
there are more Price Taker bids then there are FTRs available,
the entities with the Historical Use or converted EC
designation shall receive the FTRs equivalent to their
corresponding Historical Use or converted EC quantity (as such
quantity may be determined pursuant to Section 8.b).
f) After crediting for Historical Uses and converted ECs as
described above, DSTAR shall revenue credit the remaining
auction proceeds against the appropriate Participating TOs'
ATRRs, so that the percentage of the auction proceeds that
will be allocated to each SC's DSTAR Transmission Service
charge shall equal the percentage of the total Access Area
Charge revenues paid by that SC to the Participating TO in
that month.
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OCTOBER 1, 2000 -- CLEAN (BDR) A-19
APPENDIX A: CONGESTION MANAGEMENT
DESERT STAR TARIFF ATTACHMENT A-1: LIST OF FTR INTERFACES AND SCHEDULING POINTS
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ATTACHMENT A-1 TO APPENDIX A
LIST OF FTR INTERFACES AND SCHEDULING POINTS
DSTAR CONGESTION ZONES
A. Arizona
B. Northern New Mexico
C. Southern New Mexico
D. Western Colorado
F. Eastern Wyoming
G. Four Corners
H. Eastern Colorado
I. El Paso
IMPORT LIMITED ZONES
11. Phoenix
12. Tucson
13. El Paso
EXTERNAL ZONES
E1. California
E2. SPS
E3. Western Wyoming
E4. Eastern Utah
E5. Southern Utah
E6. Nebraska
E7. Southern Nevada
FTR IDENTIFIER
1. A to I1 (Arizona to Phoenix)
2. A to I2 (Arizona to Tucson)
3. C to I3 (Southern New Mexico to/from El Paso)
4. A to C (Arizona to/from Southern New Mexico)
5. B to C (Northern New Mexico to/from Southern New Mexico)
6. G to A (Four Corners to Arizona)
7. G to B (Four Corners to Northern New Mexico)
8. G to/from D (Four Corners to/from Western Colorado)
9. D to H (Western Colorado to Eastern Colorado)
10. F to H (Eastern Wyoming to Eastern Colorado)
11. A to/from El (Arizona to/from California)
12. B to/from E2 (Northern New Mexico to/from SPS)
13. C to/from E2 (Southern New Mexico to/from SPS)
14. A to/from E5 (Arizona to/from Southern Utah)
15. F to/from E3 (Eastern Wyoming to/from Western Wyoming)
16. D to/from E4 (Western Colorado to/from Eastern Utah)
17. F to/from E6 (Eastern Wyoming to/from Nebraska)
18. A to/from E7 (Arizona to/from Southern Nevada)
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OCTOBER 1, 2000 -- CLEAN (BDR) A-1-1
APPENDIX A: CONGESTION MANAGEMENT
DESERT STAR TARIFF ATTACHMENT A-1: LIST OF FTR INTERFACES AND SCHEDULING POINTS
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[MAP]
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OCTOBER 1, 2000 -- CLEAN (BDR) A-1-2