v ia electronic filing...2013/03/11 · proposal based upon an extensive and thorough stakeholder...

V TSF8W

R

D

PanRreanS

S

I.

SanAsyincotr

1

2

VIA ELECT

The Honorabecretary ederal Energ88 First Stre

Washington,

Re: SouthRevisand 32

Dear Secretar

ursuant to Snd Section 3

Regulations, evisions to ind 32.4 to tudy.

PP requests

. BACK

A. SP

PP is a Comn Arkansas n

Arkansas. SPystems, 13 ndependent ompanies. Aransmission

South

1).

SouthFERC

TRONIC FI

le Kimberly

gy Regulatoreet, N.E. D.C. 20426

west Power ions to Mod2.4 of the Ta

ry Bose:

Section 205 35.13 of the18 C.F.R. §ts Open Accchange the

an effective

KGROUND

PP

mmission-appnon-profit coPP has 69 M

generation power prod

As an RTOservice ov

hwest Power

west Power C ¶ 61,137 (2

M

LING

y D. Bose

ry Commiss

6

Pool, Inc., Ddify the Allocariff

of the Feder Federal En 35.13 (201cess Transmallocation o

e date of June

D

proved Regiorporation w

Members, incand transm

ducers, 9 poO, SPP is a ver portions

Pool, Inc., F

Pool, Inc., 12005).

March 11, 201

ion

Docket No. Ecation of Co

ral Power Anergy Regula1), Southwe

mission Tarifof costs rela

e 1, 2013 for

ional Transmwith its princcluding 14 inmission coo

ower markettransmissio

s of Arkan

FERC Electr

109 FERC ¶

13

ER13-_____osts for Restu

Act, 16 U.S.Catory Commest Power Poff (“Tariff”)1

ated to the r

r the propos

mission Orgaciple place onvestor-ownoperatives, ters and 8 ion provider nsas, Kansa

ric Tariff, Si

61,009 (200

_-000 udy under Se

C. 824d (20mission’s (“Cool, Inc. (“S1 to modify restudy of a

ed Tariff rev

anization (“Rof business inned utilities,

4 state auindependent r currently aas, Louisian

ixth Revised

04), order on

ections 19.4

000) (“FPA”Commission”SPP”) submitSections 19.an Aggregat

visions.

RTO”).2 It n Little Rock11 municipa

uthorities, 1transmissio

administerinna, Missour

d Volume No

n reh’g, 110

”), ”) ts .4 te

is k, al

10 on ng ri,

o.

The Honorable Kimberly D. Bose March 11, 2013

Nebraska, New Mexico, Oklahoma and Texas serving more than 6 million households in a 370,000 square-mile area.

B. Allocation of Restudy Costs under the current Tariff

The Tariff specifies the terms by which an Eligible Customer3 agrees to reimburse SPP and any affected transmission owner(s) for performing the required Aggregate Facilities Study(ies). These sections also provide an exemption from further study cost allocation based upon a costs being assigned to a request which is in excess of the Safe Harbor Cost Limit.4 Currently, the Tariff provides that the allocation of costs for aggregate study iterations from the first re-study onward is done on a per request basis. In other words, the costs of subsequent studies beyond the original Aggregate Facilities Study5 are assigned on a pro rata basis to the cost causer pursuant to the methodology outlined in the Tariff.6 Pursuant to the cost-causer methodology, if restudy is required to grant transmission service, customers who withdraw their requests following the initial study are still obligated to pay for the additional Aggregate Facilities Study, unless subject to exemption.7 Such exemptions include if the customer is assigned direct costs in excess of a Safe Harbor Cost Limit,

3 See Tariff at E-Definitions (An Eligible Customer is “(i) Any electric utility

(including the Transmission Owner(s) and any power marketer), Federal power marketing agency, or any person generating electric energy for sale for resale. Electric energy sold or produced by such entity may be electric energy produced in the United States, Canada or Mexico. However, with respect to transmission service that the Commission is prohibited from ordering by Section 212(h) of the Federal Power Act, such entity is eligible only if the service is provided pursuant to a state requirement that a Transmission Owner offer the unbundled transmission service, or pursuant to a voluntary offer of such service by a Transmission Owner. (ii) Any retail customer or eligible person taking unbundled transmission service pursuant to a state requirement that a Transmission Owner offer the transmission service, or pursuant to a voluntary offer of such service by a Transmission Owner, is an Eligible Customer under the Tariff.

4 See Tariff at Attachment J(III)(B)(1)(d). 5 See Tariff at A-Definitions (The Aggregate Facilities Study is “A Facilities Study

performed under the Aggregate Transmission Service Study process described in Attachment Z1.”

6 See Tariff § 19.4(a)(ii). See also Tariff § 32.4(a)(ii). 7 See Tariff § 19.4(a)(iii). See also Tariff § 32.4(a)(iii).


or the customer is required to pay more than the Point-To-Point Transmission Service base rate.8

Customers who withdraw transmission service requests following the first restudy are still required to pay for a third Aggregate Facilities Study if one is required, unless subject to the same exemptions outlined above.9 To avoid obligation to pay for any third restudy, the qualified exemption requires a greater than 20% increase in the customer’s upgrade revenue requirement obligation from the first study to the second study in addition to the general exemptions outlined above.10 Cost obligations are capped at $35,000.00 per study iteration for customers who withdraw requests.11

Under the current cost allocation methodology, unless qualifying for an exemption, customers wishing to withdraw a transmission request from SPP’s aggregate study process may be required to pay large, and potentially disproportionate, costs for additional Aggregate Facilities Studies. The current process for allocating these exit fees would require all entities, regardless of the MW size of its request, to pay equal pro rata shares of the additional studies. As a result, cost causing customers having a small MW request may be paying disproportional costs as compared to a cost causing customer with a substantially larger MW request.

C. Justification for Change in Cost Allocation of Exit Costs

In this filing, SPP is proposing to revise the cost allocation process in Tariff Sections 19.4 and 32.4 to address the inequity that may result from the current process.

SPP’s Regional Tariff Working Group (“RTWG”) reviewed several alternatives to correct the issue. The proposal ultimately accepted by consensus of SPP’s stakeholder process was to change the cost allocation methodology for Aggregate Facilities Study re-studies from a per request basis to a fifty percent (50%) per request basis and fifty percent (50%) on a MW capacity requested basis. Under the new methodology, the allocation of costs will continue to be allocated to cost-causing customers withdrawing from the aggregate study process; and will recognize the size differences of the MW requests as a factor in determining cost obligation for the additional studies. However, the proposed Tariff revisions will shift costs away from the

8 Id. (It is important to note that the qualified exemption for Aggregate Facilities Study

for Network Integration Transmission Service under Part III of the Tariff includes the costs being directly assigned to the customer that are in excess of the Safe Harbor Cost Limit, as defined in Attachment J, for service upgrades only.)

9 See Tariff § 19.4(a)(iv). See also Tariff § 32.4(a)(iv). 10 See Tariff § 19.4(a)(v)-(vi). See also Tariff § 32.4(a)(v)-(vi). 11 See Tariff § 19.4(a)(vii). See also Tariff § 32.4(a)(vii).


smaller requests and allocate more of the costs to the larger MW cost causing requests. The $35,000.00 cap on cost responsibility will be maintained in the new process, requiring any remaining costs to be distributed amongst the remaining transmission requests.

For example, under the current paradigm, four withdrawing requests ranging from 140 MW to 1 MW would each be allocated $25,000 of the $100,000 restudy costs. The current proposal shifts more of the costs away from the smaller requests. Smaller requests (such as the 1 MW request) withdrawing from the queue would realize a reduction in re-study cost obligation from $25,000 to $12,703.

The Tariff revisions described herein are just and reasonable in that the proposed cost allocation methodology for additional transmission studies will be more evenly distributed between customers based on the amount of MW requested. Additionally, Commission acceptance of the proposed Tariff modifications will address any inequities which may exists under the current methodology and will shift costs away from smaller requesting entities and allocate a more appropriate share of re-study costs to the larger cost causing entities.

The RTWG approved the Tariff modifications on January 5, 2012 and the SPP Board of Directors approved the Tariff modifications for filing on January, 31, 2012. While SPP recognizes that stakeholder approval does not by itself cause a filing to be just and reasonable, SPP requests that the Commission extend appropriate deference to the wishes of SPP’s stakeholders, consistent with Commission precedent.12

12 The Commission has previously recognized that provisions approved through RTO

stakeholder processes are due deference. See Sw. Power Pool, Inc., 127 FERC ¶ 61,283, at P 33 (2009) (noting that the Commission “accord[s] an appropriate degree of deference to RTO stakeholder processes”); New Eng. Power Pool, 105 FERC ¶ 61,300, at P 34 (2003) (Commission approval of transmission cost allocation proposal based upon an extensive and thorough stakeholder process); Policy Statement Regarding Regional Transmission Groups, 1991-1996 FERC Stats. & Regs., Regs. Preambles ¶ 30,976, at 30,872 (1993) (the Commission will afford the appropriate degree of deference to the stakeholder approval process). The Commission’s deference to RTO stakeholder processes has been upheld by the courts. See Pub. Serv. Comm’n of Wis. v. FERC, 545 F.3d 1058, 1062-63 (D.C. Cir. 2008) (noting that the Commission often gives weight to RTO proposals that reflect the position of the majority of the RTO’s stakeholders) (quoting Am.Elec. Power Serv. Corp. v. Midwest Indep. Transmission Sys. Operator, Inc., 122 FERC ¶ 61,083, at P 172 (2008)).


II. DESCRIPTION OF TARIFF REVISIONS

With this filing, SPP proposes to revise the procedures for facilities studies found in Section 19.4 and Section 32.4 of the Tariff. As stated previously herein, the proposed Tariff revisions mitigate the potentially disproportionate costs allocated to entities with small MW requests compared to the costs allocated to entities making a large request. SPP proposes to change the allocation of costs for subsequent restudies in the study procedures, from a per request basis to a more equitable allocation of 50% per request and 50% MW capacity requested. Sections 19.4 and 32.4 are substantively identical with regard to study procedures for both Firm Point-to-Point Transmission Service and Network Integration Transmission Service requests. As a result, the proposed changes to these sections regarding the allocation of cost for Aggregate Facilities Studies are the same:

1) The proposed changes to Sections 19.4(a)(i) and 32.4(a)(i) are clarifying in nature and have no substantive impact on any existing or proposed rates, terms, or conditions.13

2) The proposed changes to Section 19.4(a)(ii) and 32.4(a)(ii) include a

bifurcation of the original cost allocation (on a per request basis) in into new subsections a and b (respectively, 50% per request and 50% per MW capacity requested).14 The provisions proposed in new subsections a and b provide that under the Subsequent Study Cost Allocation15 method applied in these sections, the cost of the subsequent study is to be paid by the applicable group of Eligible Customers as follows:

a. one half of the study cost is divided by the number of service requests and the resulting amount is assessed to each Eligible Customer for each service request for which that Eligible Customer is responsible, and b. one half of the study cost is prorated among the Eligible Customers based on the MW capacity requested.

3) The proposed revisions to Sections 19.4(a) and 32.4(a), subsections iii through

viii, are clarifications of the substantive changes in subsections ii(a) and ii(b)

13 See Proposed Tariff §§ 19.4(a)(i) and 32.4(a)(i). 14 See Proposed Tariff §§ 19.4(a)(ii) and 32.4(a)(ii). 15 Id.


identified above.16 Moreover, the current Tariff subsections ii and iii of Sections 19.4(a) and 32.4(a) describe the Customer’s obligations in subsequent second and third study iterations. As the proposed change in Subsequent Cost Allocation Methodology apply to all subsequent studies, Sections (iii) and (iv) of existing Tariff Sections 19.4(a) and 32.4(a), (iii) and (iv) have been merged. As a result, Subsections (vii) and (viii) have been eliminated completely.

4) The proposed new Sections 19.4 (a)(iii)-(vi) and 32.4 (a)(iii)-(vi) clarify how

Eligible Customers may be granted exemptions from additional study costs; and how costs for exempted withdrawn requests is reallocated to existing requests.17 Subsections (iii) provide that for Eligible Customers who withdraw their requests following the first or second study are obligated to pay for the next study unless exempted from further study cost allocation. A request will be exempt from further study cost allocation if that request results in costs being directly assigned to the Eligible Customer in excess of the Safe Harbor Cost Limit.18 Subsections (iv) provide the Eligible Customers who withdraw requests following the third or subsequent studies are obligated to pay for the next study, unless the requests falls into one of two exemptions:

a. results in more than a twenty (20) percent increase in the Eligible Customer’s upgrade revenue requirement obligation in the current study over the immediately preceding study, and b. results in costs being directly assigned to the Eligible Customer that are in excess of the Safe Harbor Cost Limit for Service Upgrades.19

5) New Subsections (v) provide that if all withdrawn requests are exempt from study cost allocation, Eligible Customers remaining in the Aggregate Facilities Study will be assessed for subsequent studies.20 Finally, new Subsections (vi) retains the $35,000 cap per request per study iteration for Eligible Customers who withdraw requests21 and provides that 1) remaining study costs will be paid by Eligible Customers remaining in the Aggregate

16 See Proposed Tariff §§ 19.4(a)(iii)-(viii) and 32.4(a)(iii)-(viii). 17 See Proposed Tariff §§ 19.4(a)(iii)-(vi) and 32.4(a)(iii)-(vi). 18 See Proposed Tariff §§ 19.4(a)(iii) and 32.4(a)(iii). 19 See Proposed Tariff §§ 19.4(iv) and 32.4(iv). 20 See Proposed Tariff §§ 19.4(a)(v) and 32.4(a)(v). 21 See Proposed Tariff §§ 19.4(a)(vi) and 32.4(a)(vi).


Facilities Study22, and 2) Eligible Customers whose requested withdrawal requires only a reallocation of upgrade costs (as opposed to a restudy) will be charge the reallocation cost capped at $2,000.23

As the Tariff revisions described above more equitably distribute the costs for facilities studies between customers seeking disproportionate amounts of transmission service over SPP facilities; and as the Tariff revisions were developed and approved through SPP’s stakeholder process, SPP respectfully requests that the Commission find the proposed Tariff revisions to be just and reasonable and accept the Tariff revisions for filing. III. EFFECTIVE DATES

SPP requests that the Commission accept the proposed revisions to the Tariff to become effective June 1, 2013, which is not less than 60 days, or more than 120 days, after the submission of this filing as required by the Commission.24

IV. ADDITIONAL INFORMATION

A. Documents Submitted with this Filing:

In addition to this transmittal letter, the following documents are included with this filing:

Clean and Redline Tariff revisions under the Sixth Revised Volume No. 1

B. Service:

SPP has electronically served a copy of this filing on all its Members and Customers. A complete copy of this filing will be posted on the SPP web site, www.spp.org, and is also being served on all affected state commissions.

C. Requisite Agreement:

These revisions to the SPP Tariff do not require any contracts or agreements.

D. Part 35.13 Cost of Service Support

22 See Proposed Tariff §§ 19.4(a)(vii) and 32.4(a)(vii). 23 Id. 24 See 18 C.F.R. § 35.3 at (a) (1).


To the extent necessary, SPP requests waiver of any provisions of section 35.13 of the Commission’s regulations that may be deemed to require cost support in the form of cost-of-service statements for the enclosed revisions. SPP notes that the enclosed revisions do not modify applicable Commission-approved rates; but describe changes to the procedure whereby the costs of transmission studies are reimbursed to SPP consistent with Commission policy.

E. Communications

Correspondence and communications with respect to this filing should be sent to, and SPP requests the Secretary to include on the official service list, the following:

Nicole Wagner Manager–Regulatory Policy Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, AR 72223 Telephone: (501) 688-1642 Fax: (501) 482-2022 [email protected]

Matthew Harward Attorney Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, AR 72223 Telephone: (501) 614-3560 Fax: (501) 482-2022 [email protected]

V. CONCLUSION

For all of the foregoing reasons, SPP respectfully requests that the Commission accept the Tariff revisions proposed herein as just and reasonable, with the effective date of June 1, 2013.

Respectfully submitted, /s/ Matthew Harward

Matthew Harward Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, AR 72223 Telephone: (501) 614-3560 [email protected]

Attorney for Southwest Power Pool, Inc.

19.4 Facilities Study Procedures:

a) For Long-Term Firm Point-To-Point Transmission Service requests for

which a Completed Application has been submitted on the Transmission

Provider’s OASIS prior to the close of the open season as specified in

Attachment Z1 to this Tariff, the Transmission Provider shall make

available on the Transmission Provider’s OASIS for the Eligible Customer

an Aggregate Facilities Study Agreement pursuant to which the Eligible

Customer shall agree to reimburse the Transmission Provider and any

affected Transmission Owner(s) for performing the required Aggregate

Facilities Study(ies) as described in Sections 19.4.a.i through 19.4.a.vii.

In some cases a series of Aggregate Facilities Studies may be required to

complete the analysis. The Transmission Provider, in conjunction with the

applicable Transmission Owners, shall determine the optimal set of

solutions to reduce the overall costs for the study group and reliably

provide the requested service in a timely manner. For a service request to

remain a Completed Application, the Eligible Customer shall execute the

Aggregate Facilities Study Agreement and return it to the Transmission

Provider prior to the close of the open season. If the Eligible Customer

elects not to execute the Aggregate Facilities Study Agreement, its

Application shall be deemed withdrawn and its Financial Security,

pursuant to Section 17.3, shall be returned with interest, if any. Upon

receipt of an executed Aggregate Facilities Study Agreement, the

Transmission Provider in coordination with the appropriate Transmission

Owner(s) will use due diligence to complete the required Facilities Study

within a sixty (60) day period. If the Transmission Provider together with

the affected Transmission Owner(s) are unable to complete the Facilities

Study in the allotted time period, the Transmission Provider shall notify

the Transmission Customer and provide an estimate of the time needed to

reach a final determination along with an explanation of the reasons that

additional time is required to complete the study.

(i) The Aggregate Facilities Study Agreement will clearly specify the

Transmission Provider's estimate of the actual cost and time for

completion of the Aggregate Facilities Study. The charge shall not

exceed the actual cost of the study. The cost of the first Aggregate

Facilities Study will be prorated among the Eligible Customers

based on the MW capacity requested. In performing the Aggregate

Facilities Study, the Transmission Provider shall rely, to the extent

reasonably practicable, on existing transmission planning studies.

The Eligible Customers will not pay a charge for such existing

studies; however, the Eligible Customers will be responsible for

paying costs associated with any modifications to existing planning

studies that are reasonably necessary to evaluate the impact of the

Eligible Customers’ requests for service on the Transmission

System.

(ii) If a single Aggregate Facilities Study is not sufficient for the

Transmission Provider to accommodate the requests for service,

the costs of subsequent studies shall be paid by Eligible Customers

as described in Sections 19.4.a.iii through 19.4.a.vii. Under the

Subsequent Study Cost Allocation method applied in these

sections, the cost of the subsequent study is to be paid by the

applicable group of Eligible Customers as follows:

a. one half of the study cost is divided by the number of

service requests and the resulting amount is assessed to

each Eligible Customer for each service request for which

that Eligible Customer is responsible, and

b. one half of the study cost is prorated among the Eligible

Customers based on the MW capacity requested.

(iii) Eligible Customers who withdraw their requests following the first

or second study are obligated to pay for the next Aggregate

Facilities Study if one is required and the study cost will be

assessed in accordance with the Subsequent Study Cost Allocation.

A service request is exempt from this study cost allocation if that

request results in either (1) costs being directly assigned to the

Eligible Customer that are in excess of the Safe Harbor Cost Limit

(as defined in Attachment J) for Service Upgrades or (2) the

Eligible Customer being required to pay more than the point- to-

point base rate.

(iv) Eligible Customers who withdraw their requests following the

third or any subsequent study are obligated to pay for the next

Aggregate Facilities Study if one is required and the study cost

will be assessed in accordance with the Subsequent Study Cost

Allocation. A service request is exempt from this study cost

allocation if that request:

a. results in more than a twenty (20) percent increase in the

Eligible Customer’s upgrade revenue requirement

obligation in the current study over the immediately

preceding study, and

b. results in either (1) costs being directly assigned to the

Eligible Customer that are in excess of the Safe Harbor

Cost Limit for Service Upgrades or (2) the Eligible

Customer being required to pay more than the point-to-

point base rate.

(v) If all withdrawn requests are exempt from study cost allocation

after any study, the cost of the subsequent study will be paid by

Eligible Customers remaining in the Aggregate Facilities Study

and will be assessed in accordance with the Subsequent Study Cost

Allocation.

(vi) The study cost obligations defined in this Section 19.4.a are capped

at $35,000 per request per study iteration for Eligible Customers

who withdraw their requests. Remaining study costs will be paid

by Eligible Customers staying in the Aggregate Facilities Study

and such costs will be assessed in accordance with the Subsequent

Study Cost Allocation.

(vii) Sections 19.4a.iii through 19.4.a.vi notwithstanding, Eligible

Customers whose requested withdrawal requires only a

reallocation of upgrade costs, and not a complete restudy, will be

charged the actual reallocation cost capped at $2,000 per request.

Any remaining study costs will be paid by those staying in the

Aggregate Facilities Study and such costs will be assessed in

accordance with the Subsequent Study Cost Allocation.

b) When completed, the Aggregate Facilities Study will include a good faith

estimate of (i) the cost of Direct Assignment Facilities to be charged to the

Transmission Customer, (ii) the Transmission Customer's appropriate

share of the cost of any required Network Upgrades as determined

pursuant to the provisions of Part II of the Tariff, and (iii) the time

required to complete such construction and initiate the requested service.

c) When the Transmission Provider posts the Aggregate Facilities Study, the

Transmission Provider shall notify the Eligible Customer that within

fifteen (15) days the Eligible Customer must make one of the following

elections: (i) take the capacity available to it without the addition of

facilities, (ii) remain in the study with either the requested or deferred start

date, (iii) remain in the study using interim redispatch pending completion

of the required upgrades or (iv) withdraw its request. Failure by the

Eligible Customer to provide the Transmission Provider with such election

within the fifteen (15) days shall cause the request to (i) no longer be

considered a Completed Application and (ii) be deemed terminated and

withdrawn. Additionally for a transmission service request associated

with a new or changed Designated Resource the Eligible Customer must

provide a statement signed by an authorized officer or agent of the Eligible

Customer attesting that the new or changed Designated Resource is owned

by the Eligible Customer or the Eligible Customer has committed to

purchase generation pursuant to an executed contract. When the elections

for each request in the Aggregate Facilities Study have been processed, a

subsequent Aggregate Facilities Study shall be performed reflecting the

Aggregate Facilities Study changes and the requests remaining in the

study. If the Transmission Provider determines via the Aggregate

Transmission Service Study process that there will be adequate transfer

capability to satisfy the full or any partial amount of a Completed

Application without the addition of any facilities, and the Eligible

Customer has made the election to accept the amount of transfer

capability, then the Transmission Provider shall provide the Eligible

Customer a Service Agreement. The Eligible Customer shall have (30)

days to execute a Service Agreement or request the filing of an unexecuted

Service Agreement and to provide the required Security or the request will

no longer be a Completed Application and shall be deemed terminated and

withdrawn. This Aggregate Transmission Service Study process will

continue iteratively with additional Aggregate Facilities Studies processed

until each Eligible Customer’s request has been resolved. At this point all

Eligible Customers shall execute Service Agreements or request the filing

of an unexecuted Service Agreement.

d) The Transmission Customer shall provide the Transmission Provider with

a letter of credit in the form specified in Appendix C to Attachment X,

Credit Policy or other reasonable form of security acceptable to the

Transmission Provider (“Security”) equivalent to only those costs of new

facilities or upgrades that are allocated to the customer for cost recovery.

Within the time set out in Attachment P, the Transmission Customer shall

execute a Service Agreement or request the filing of an unexecuted

Service Agreement and provide the required Security or the request will


withdrawn.

e) If Security is required, the Transmission Customer must provide it in an

amount equal to the full amount of the upgrade cost allocated to the

customer for cost recovery. The Transmission Provider may, at its sole

discretion, waive the provision of such Security until the beginning of the

quarter when the building Transmission Owner first incurs financial

obligations for the upgrade. The amount of the Security shall increase

each year thereafter based upon the total amount of financial obligations,

plus an estimate of the increase in financial obligations that are going to be

incurred in the next 12 months. The required amount of Security shall be

reduced each year by the amount of revenue paid the previous year by the

Transmission Customer related to the cost allocated to it for cost recovery.


a) For Network Integration Transmission Service requests of one year or

longer for which a Completed Application has been submitted on the

Transmission Provider’s OASIS prior to the close of the open season as

specified in Attachment Z1 to this Tariff, the Transmission Provider shall

make available on the Transmission Provider’s OASIS for the Eligible

Customer an Aggregate Facilities Study Agreement pursuant to which the

Eligible Customer shall agree to reimburse the Transmission Provider and

any affected Transmission Owner(s) for performing the required

Aggregate Facilities Study(ies) as described in Sections 32.4.a.i though

32.4.a.vii. In some cases a series of Aggregate Facilities Studies may be

required to complete the analysis. The Transmission Provider, in

conjunction with the applicable Transmission Owners, shall determine the

optimal set of solutions to reduce the overall costs for the study group and

reliably provide the requested service in a timely manner. For a service

request to remain a Completed Application, the Eligible Customer shall

execute the Facilities Study Agreement and return it to the Transmission



Application shall be deemed withdrawn and its Financial Security shall be

returned with interest, if any. Upon receipt of an executed Aggregate

Facilities Study Agreement, the Transmission Provider in coordination

with the affected Transmission Owner(s) will use due diligence to

complete the required Facilities Study within a sixty (60) day period. If

the Transmission Provider together with the affected Transmission

Owner(s) are unable to complete the Facilities Study in the allotted time

period, the Transmission Provider shall notify the Eligible Customer and

provide an estimate of the time needed to reach a final determination along

with an explanation of the reasons that additional time is required to

complete the study.


Transmission Provider's estimate of the actual cost and time for







The Eligible Customers will not pay a charge for such existing

studies; however, the Eligible Customers will be responsible for

paying costs associated with any modifications to existing planning

studies that are reasonably necessary to evaluate the impact of the

Eligible Customers’ requests for service on the Transmission

System.



the costs of subsequent studies shall be paid by Eligible Customers

as described in Sections 32.4.a.iii through 32.4.a.vii, Under the

Subsequent Study Cost Allocation method applied in these









Eligible Customers who withdraw their requests following the first

or second study are obligated to pay for the next Aggregate

Facilities Study if one is required and the study cost will be

assessed in accordance with the Subsequent Study.

(iii) Cost Allocation. A service request is exempt from this study cost

allocation if that request results in costs being directly assigned to

the Eligible Customer that are in excess of the Safe Harbor Cost

Limit (as defined in Attachment J) for Service Upgrades.



Aggregate Facilities Study if one is required and the study cost will

be assessed in accordance with the Subsequent Study Cost

Allocation. A service request is exempt from this study cost

allocation if that request:





b. results in costs being directly assigned to the Eligible

Customer that are in excess of the Safe Harbor Cost Limit

for Service Upgrades.

(v) If all withdrawn requests are exempt from study cost allocation

after any study, the cost of the subsequent study will be paid by

Eligible Customers remaining in the Aggregate Facilities Study

and will be assessed in accordance with the Subsequent Study Cost

Allocation.




by Eligible Customers staying in the Aggregate Facilities Study

and such costs will be assessed in accordance with the Subsequent


(vii) Sections 32.4.a.iii through 32.4.a.vi notwithstanding, Eligible

Customers whose requested withdrawal requires only a

reallocation of upgrade costs, and not a complete restudy, will be

charged the actual reallocation cost capped at $2,000 per request.

Any remaining study costs will be paid by those staying in the

Aggregate Facilities Study and such costs will be assessed in

accordance with the Subsequent Study Cost Allocation.



Eligible Customer, (ii) the Eligible Customer's appropriate share of the

cost of any required Network Upgrades, and (iii) the time required to

complete such construction and initiate the requested service.

c) When the Transmission Provider posts the Aggregate Transmission

Service Study, the Transmission Provider shall notify the Eligible

Customer that within fifteen (15) days the Eligible Customer must make

one of the following elections: (i) take the capacity available to it without

the addition of facilities, (ii) remain in the study using interim redispatch

or deferred start of service pending completion of the required upgrades, if

necessary, or (iii) withdraw its request. Failure by the Eligible Customer

to provide the Transmission Provider with such election and within the

fifteen (15) days shall cause the request to (i) no longer be considered a

Completed Application and (ii) be deemed terminated and withdrawn.

Additionally for a transmission service request associated with a new or

changed Designated Resource the Eligible Customer must provide a

statement, signed by an authorized officer or agent of the Eligible

Customer, that the Network Resource satisfies the conditions set forth in

Section 30.2. When the elections for each request in the Aggregate

Facilities Study have been processed, a subsequent Aggregate Facilities

Study shall be performed reflecting the Aggregate Facilities Study

changes and the requests remaining in the study. If the Transmission

Provider determines via the Aggregate Transmission Service Study

process that there will be adequate transfer capability to satisfy the full or

any partial amount of a Completed Application without the addition of any

facilities, and the Eligible Customer has made the election to accept the

amount of transfer capability, then the Transmission Provider shall

provide the Eligible Customer a Service Agreement. The Eligible

Customer shall have (30) days to execute a Service Agreement or request

the filing of an unexecuted Service Agreement and to provide the required

Security or the request will no longer be a Completed Application and

shall be deemed terminated and withdrawn. This Aggregate Facilities

Study process will continue iteratively with additional Aggregate Facilities

Studies processed until all Eligible Customers have chosen to remain in

the study process or take the capacity available. At this point all Eligible

Customers shall execute Service Agreements or request the filing of an

unexecuted Service Agreement.

d) The Eligible Customer shall provide the Transmission Provider with a

letter of credit in the form specified in Appendix C to Attachment X,




The Eligible Customer shall have thirty (30) days to execute a Service

Agreement or request the filing of an unexecuted Service Agreement and

provide the required Security or the request no longer will be a Completed

Application and shall be deemed terminated and withdrawn.









incurred on the upgrade in the next 12 months. The required amount of

Security shall be reduced each year by the amount of revenue paid the

previous year by the Transmission Customer related to the cost allocated

to it for cost recovery.


a) For Long-Term Firm Point-To-Point Transmission Service requests for

which a Completed Application has been submitted on the Transmission

Provider’s OASIS prior to the close of the open season as specified in

Attachment Z1 to this Tariff, the Transmission Provider shall make

available on the Transmission Provider’s OASIS for the Eligible Customer

an Aggregate Facilities Study Agreement pursuant to which the Eligible

Customer shall agree to reimburse the Transmission Provider and any

affected Transmission Owner(s) for performing the required Aggregate

Facilities Study(ies) as described in Sections 19.4.a.i through 19.4.a.vii.

In some cases a series of Aggregate Facilities Studies may be required to

complete the analysis. The Transmission Provider, in conjunction with the

applicable Transmission Owners, shall determine the optimal set of

solutions to reduce the overall costs for the study group and reliably

provide the requested service in a timely manner. For a service request to

remain a Completed Application, the Eligible Customer shall execute the

Aggregate Facilities Study Agreement and return it to the Transmission



Application shall be deemed withdrawn and its Financial Security,

pursuant to Section 17.3, shall be returned with interest, if any. Upon

receipt of an executed Aggregate Facilities Study Agreement, the

Transmission Provider in coordination with the appropriate Transmission

Owner(s) will use due diligence to complete the required Facilities Study

within a sixty (60) day period. If the Transmission Provider together with

the affected Transmission Owner(s) are unable to complete the Facilities

Study in the allotted time period, the Transmission Provider shall notify

the Transmission Customer and provide an estimate of the time needed to

reach a final determination along with an explanation of the reasons that

additional time is required to complete the study.


Transmission Provider's estimate of the actual cost, and time for







The Eligible Customers will not be assessed pay a charge for such

existing studies; however, the Eligible Customers will be

responsible for charges paying costs associated with any

modifications to existing planning studies that are reasonably

necessary to evaluate the impact of the Eligible Customers’

requests for service on the Transmission System.



the costs of subsequent studies will shall be prorated among the

paid by Eligible Customers based on a per request basis using the

cost causer methodology as defined described in Sections 19.4.a.iii

through 19.4.a.vi.vii. Under the Subsequent Study Cost Allocation

method applied in these sections, the cost of the subsequent study

is to be paid by the applicable group of Eligible Customers as

follows:







(iii) Eligible Customers who withdraw their requests following the

initial first or second study are still obligated to pay for a second

the next Aggregate Facilities Study if one is required subject to

qualified exemptions. Qualified exemptions include requests that

result in and the study cost will be assessed in accordance with the

Subsequent Study Cost Allocation. A service request is exempt

from this study cost allocation if that request results in either (1)

costs being directly assigned to the Eligible Customer that are in

excess of the Safe Harbor Cost Limit (as defined in Attachment J)

for Service Upgrades or (2) the Eligible Customer being required

to pay more than the Point-to-Point base rate. If all withdrawn

requests qualify for exemption, study costs will be paid by those

remaining in Aggregate Facilities Study prorated based on a per

request basispoint- to- point base rate.


second Aggregate Facilities Study third or any subsequent study

are still obligated to pay for a third the next Aggregate Facilities

Study if one is required subject to qualified exemptions. Qualified

exemptions include requests and the study cost will be assessed in

accordance with the Subsequent Study Cost Allocation. A service

request is exempt from this study cost allocation if that result in

request:





b. results in either (1) costs being directly assigned to the

Eligible Customer that are in excess of the Safe Harbor

Cost Limit (as defined in Attachment J) for Service

Upgrades or (2) the Eligible Customer being required to

pay more than the Ppoint-to-Ppoint base rate. If all

withdrawn requests qualify for exemption, study costs will

be paid by those remaining in Aggregate Facilities Study

prorated based on a per request basis.

(v) For the third Aggregate Facilities Study a qualified exemption

requires a greater than 20% increase in the Eligible Customer’s

upgrade revenue requirement from the first study to the second

study and the (1) costs being directly assigned to the Eligible

Customer are in excess of the Safe Harbor Cost Limit (as defined

in Attachment J) for Service Upgrades or (2) the Eligible Customer

is required to pay more than the Point-to Point base rate. If all

withdrawn requests qualify for exemption, study costs will be paid

by those remaining in Aggregate Facilities Study prorated based on

a per request basis.

(vi) Cost obligations for any subsequent Aggregate Facilities Studies

will be determined using the same methodology and qualified

exemptions as they were for the third study, pursuant to Section

19.4.a.v above.

(viiv) The If all withdrawn requests are exempt from study cost

allocation after any study, the cost of the subsequent study will be

paid by Eligible Customers remaining in the Aggregate Facilities

Study and will be assessed in accordance with the Subsequent





by Eligible Customers remaining staying in the Aggregate

Facilities Study prorated based on a per request basis and Eligible

Customers who withdrew their request that did not qualify for an

exemptionsuch costs will be assessed in accordance with the

Subsequent Study Cost Allocation.

(vii) (viii) Sections 19.4a.iii through 19.4.a.vi notwithstanding,

Eligible Customers whose withdrawal of requests requested

withdrawal requires only requires a reallocation of upgrade costs,

and not a complete restudy, will be charged the actual reallocation

cost, capped at $2,000 per request. Any Rremaining study costs

will be paid by those remaining staying in the Aggregate Facilities

Study prorated based on a per request basis and Eligible Customers

who withdrew their request that did not qualify for an





Transmission Customer, (ii) the Transmission Customer's appropriate

share of the cost of any required Network Upgrades as determined

pursuant to the provisions of Part II of the Tariff, and (iii) the time

required to complete such construction and initiate the requested service.

c) When the Transmission Provider posts the Aggregate Facilities Study, the

Transmission Provider shall notify the Eligible Customer that within

fifteen (15) days the Eligible Customer must make one of the following

elections: (i) take the capacity available to it without the addition of

facilities, (ii) remain in the study with either the requested or deferred start

date, (iii) remain in the study using interim redispatch pending completion

of the required upgrades or (iv) withdraw its request. Failure by the

Eligible Customer to provide the Transmission Provider with such election

within the fifteen (15) days shall cause the request to (i) no longer be

considered a Completed Application and (ii) be deemed terminated and

withdrawn. Additionally for a transmission service request associated

with a new or changed Designated Resource the Eligible Customer must

provide a statement signed by an authorized officer or agent of the Eligible

Customer attesting that the new or changed Designated Resource is owned

by the Eligible Customer or the Eligible Customer has committed to

purchase generation pursuant to an executed contract. When the elections

for each request in the Aggregate Facilities Study have been processed, a

subsequent Aggregate Facilities Study shall be performed reflecting the

Aggregate Facilities Study changes and the requests remaining in the

study. If the Transmission Provider determines via the Aggregate

Transmission Service Study process that there will be adequate transfer

capability to satisfy the full or any partial amount of a Completed

Application without the addition of any facilities, and the Eligible

Customer has made the election to accept the amount of transfer

capability, then the Transmission Provider shall provide the Eligible

Customer a Service Agreement. The Eligible Customer shall have (30)

days to execute a Service Agreement or request the filing of an unexecuted

Service Agreement and to provide the required Security or the request will


withdrawn. This Aggregate Transmission Service Study process will

continue iteratively with additional Aggregate Facilities Studies processed

until each Eligible Customer’s request has been resolved. At this point all

Eligible Customers shall execute Service Agreements or request the filing

of an unexecuted Service Agreement.

d) The Transmission Customer shall provide the Transmission Provider with

a letter of credit in the form specified in Appendix C to Attachment X,




Within the time set out in Attachment P, the Transmission Customer shall

execute a Service Agreement or request the filing of an unexecuted

Service Agreement and provide the required Security or the request will


withdrawn.









incurred in the next 12 months. The required amount of Security shall be

reduced each year by the amount of revenue paid the previous year by the

Transmission Customer related to the cost allocated to it for cost recovery.


a) For Network Integration Transmission Service requests of one year or

longer for which a Completed Application has been submitted on the

Transmission Provider’s OASIS prior to the close of the open season as

specified in Attachment Z1 to this Tariff, the Transmission Provider shall

make available on the Transmission Provider’s OASIS for the Eligible

Customer an Aggregate Facilities Study Agreement pursuant to which the

Eligible Customer shall agree to reimburse the Transmission Provider and

any affected Transmission Owner(s) for performing the required

Aggregate Facilities Study(ies) as described in Sections 32.4.a.i though

32.4.a.vii. In some cases a series of Aggregate Facilities Studies may be

required to complete the analysis. The Transmission Provider, in

conjunction with the applicable Transmission Owners, shall determine the

optimal set of solutions to reduce the overall costs for the study group and

reliably provide the requested service in a timely manner. For a service

request to remain a Completed Application, the Eligible Customer shall

execute the Facilities Study Agreement and return it to the Transmission



Application shall be deemed withdrawn and its Financial Security shall be

returned with interest, if any. Upon receipt of an executed Aggregate

Facilities Study Agreement, the Transmission Provider in coordination

with the affected Transmission Owner(s) will use due diligence to

complete the required Facilities Study within a sixty (60) day period. If

the Transmission Provider together with the affected Transmission

Owner(s) are unable to complete the Facilities Study in the allotted time

period, the Transmission Provider shall notify the Eligible Customer and

provide an estimate of the time needed to reach a final determination along

with an explanation of the reasons that additional time is required to

complete the study.

(i) The Aggregate Facility Facilities Study Agreement will clearly

specify the Transmission Provider's estimate of the actual cost, and

time for completion of the Aggregate Facilities Study. The charge

shall not exceed the actual cost of the study. The cost of the first

Aggregate Facilities Study will be prorated among the Eligible

Customers based on the MW capacity requested. In performing

the Aggregate Facilities Study, the Transmission Provider shall

rely, to the extent reasonably practicable, on existing transmission

planning studies. The Eligible Customers will not be assessed pay

a charge for such existing studies; however, the Eligible Customers

will be responsible for charges paying costs associated with any

modifications to existing planning studies that are reasonably

necessary to evaluate the impact of the Eligible Customers’

requests for service on the Transmission System.



the costs of subsequent studies shall be assigned topaid by Eligible

Customers on a request basis using the cost causer methodology as

defined described in Sections 32.4.a.iii through 32.4.a.vivii, Under

the Subsequent Study Cost Allocation method applied in these









(iii) Eligible Customers who withdraw their requests following the

initial first or second study are still obligated to pay for a second

the next Aggregate Facilities Study if one is required subject to

qualified exemptions. Qualified exemptions include requests that

result in costs being directly assigned to the Eligible Customer that

are in excess of the Safe Harbor Cost Limit (as defined in

Attachment J) for Service Upgrades. If all withdrawn requests

qualify for exemption, study costs and the study cost will be paid

by those remaining in Aggregate Facilities assessed in accordance

with the Subsequent Study prorated based on a per request basis.

(iviii) Eligible Customers who withdraw their requests following the

second Aggregate Facilities Study Cost Allocation. A service

request is exempt from this study cost allocation are still obligated

to pay for a third Aggregate Facilities Study if one is required

subject to qualified exemptions. Qualified exemptions include

requests that result that request results in costs being directly

assigned to the Eligible Customer that are in excess of the Safe

Harbor Cost Limit (as defined in Attachment J) for Service

Upgrades.

(viv) For Eligible Customers who withdraw their requests following the


Aggregate Facilities Study a qualified exemption requires a greater

if one is required and the study cost will be assessed in accordance

with the Subsequent Study Cost Allocation. A service request is

exempt from this study cost allocation if that request:

a. results in more than a twenty (20%) percent increase in the

Eligible Customer’s upgrade revenue requirement from

obligation in the first current study to over the second

immediately preceding study, and the (1)

b. results in costs being directly assigned to the Eligible

Customer that are in excess of the Safe Harbor Cost Limit

(as defined in Attachment J) for Service Upgrades.

(v). If all withdrawn requests qualify for exemption, study costs are

exempt from study cost allocation after any study, the cost of the

subsequent study will be paid by those Eligible Customers

remaining in the Aggregate Facilities Study prorated based on a

per request basisand will be assessed in accordance with the


(vi) Cost obligations for any subsequent Aggregate Facilities Studies

will be determined using the same methodology and qualified

exemptions as they were for the third study, pursuant to Section

32.4.a.iv above.

(viivi) The study cost obligations defined in this Section 32.4.a are capped



by those remaining Eligible Customers staying in the Aggregate

Facilities Study prorated based on a per request basis and Eligible

Customers who withdrew their request that did not qualify for an



(viii) Sections 32.4.a.iii through 32.4.a.vi notwithstanding, Eligible

Customers whose whose withdrawal of requests requested

withdrawal requires only requires a reallocation of upgrade costs,

and not a complete restudy, will be charged the actual reallocation

cost, capped at $2,000 per request. Remaining Any remaining

study costs will be paid by those remaining staying in the

Aggregate Facilities Study prorated based on a per request basis

and Eligible Customers who withdrew their request that did not

qualify for an exemption. such costs will be assessed in accordance

with the Subsequent Study Cost Allocation.



Eligible Customer, (ii) the Eligible Customer's appropriate share of the

cost of any required Network Upgrades, and (iii) the time required to

complete such construction and initiate the requested service.

c) When the Transmission Provider posts the Aggregate Transmission

Service Study, the Transmission Provider shall notify the Eligible

Customer that within fifteen (15) days the Eligible Customer must make

one of the following elections: (i) take the capacity available to it without

the addition of facilities, (ii) remain in the study using interim redispatch

or deferred start of service pending completion of the required upgrades, if

necessary, or (iii) withdraw its request. Failure by the Eligible Customer

to provide the Transmission Provider with such election and within the

fifteen (15) days shall cause the request to (i) no longer be considered a

Completed Application and (ii) be deemed terminated and withdrawn.

Additionally for a transmission service request associated with a new or

changed Designated Resource the Eligible Customer must provide a

statement, signed by an authorized officer or agent of the Eligible

Customer, that the Network Resource satisfies the conditions set forth in

Section 30.2. When the elections for each request in the Aggregate

Facilities Study have been processed, a subsequent Aggregate Facilities

Study shall be performed reflecting the Aggregate Facilities Study

changes and the requests remaining in the study. If the Transmission

Provider determines via the Aggregate Transmission Service Study

process that there will be adequate transfer capability to satisfy the full or

any partial amount of a Completed Application without the addition of any

facilities, and the Eligible Customer has made the election to accept the

amount of transfer capability, then the Transmission Provider shall

provide the Eligible Customer a Service Agreement. The Eligible

Customer shall have (30) days to execute a Service Agreement or request

the filing of an unexecuted Service Agreement and to provide the required

Security or the request will no longer be a Completed Application and

shall be deemed terminated and withdrawn. This Aggregate Facilities

Study process will continue iteratively with additional Aggregate Facilities

Studies processed until all Eligible Customers have chosen to remain in

the study process or take the capacity available. At this point all Eligible

Customers shall execute Service Agreements or request the filing of an

unexecuted Service Agreement.

d) The Eligible Customer shall provide the Transmission Provider with a

letter of credit in the form specified in Appendix C to Attachment X,




The Eligible Customer shall have thirty (30) days to execute a Service

Agreement or request the filing of an unexecuted Service Agreement and

provide the required Security or the request no longer will be a Completed

Application and shall be deemed terminated and withdrawn.









incurred on the upgrade in the next 12 months. The required amount of

Security shall be reduced each year by the amount of revenue paid the

previous year by the Transmission Customer related to the cost allocated

to it for cost recovery.