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OPEN ACCESS
TRANSMISSION SERVICE TARIFF
OF THE
AMERICAN ELECTRIC POWER SYSTEM
Introduction AEPSC Explanation American Electric Power Service Corporation, as agent for Appalachian Power Company, AEP Texas Central Company, Columbus Southern Power Company, Indiana Michigan Power Company, Kentucky Power Company, Kingsport Power Company, Ohio Power Company, Public Service Company of Oklahoma, Southwestern Electric Power Company, AEP Texas North Company and Wheeling Power Company files this Tariff to comply with the Federal Energy Regulatory Commission's (FERC) Order No. 888, issued in Docket No. RM95-8-000, "Promoting Wholesale Competition through Open Access Non-discriminatory Transmission Service by Public Utilities," FERC Stats. & Regs., Regulations Preambles ¶ 31,036 (1996), reh'g, Order No. 888-A, FERC Stats. & Regs., Regulations Preambles ¶ 31,048 (1997), reh'g, Order No. 888-B, 81 FERC ¶ 61,248 (1997), reh'g, Order No. 888-C, 82 FERC ¶ 61,046 (1998). The transmission and ancillary services offered for sale under this Tariff are the transmission and ancillary services that the FERC has ordered public utilities subject to its jurisdiction to offer to Eligible Customers, as that term is defined in this Tariff. This Tariff also implements certain of the transmission access and service pricing policies of the Public Utilities Commission of Texas generally in accordance with Chapter 25 of that Commission's Substantive Rules. If the PUCT Chapter 25 of the PUCT’s Substantive Rules or Order No. 888 is modified in the future, the terms on which transmission and ancillary services are offered under this Tariff may also be modified pursuant to the provisions of Section 9 of this Tariff.
Public Service Company of Oklahoma and Southwestern Electric Power Company are members of the Southwest Power Pool. The SPP offers certain transmission services acting as their designated agent under the Open Access Transmission Tariff for Service Offered by Southwest Power Pool filed with the Federal Energy Regulatory Commission (SPP Tariff).
Beginning October 1, 2004, PJM is the Transmission Provider for the AEP East Zone operating companies, which include Appalachian Power Company, Columbus Southern Power Company, Indiana Michigan Power Company, Kentucky Power Company, Kingsport Power Company, Ohio Power Company, and Wheeling Power Company. As the transmission provider for the AEP East Zone operating companies, PJM offers certain transmission services under their Open Access Transmission Tariff filed with the Federal Energy Regulatory Commission (PJM Tariff).
TOC Table of Contents OPEN ACCESS TRANSMISSION SERVICE TARIFF I COMMON SERVICE PROVISIONS 1. Definitions 1.1 AEP East Zone 1.2 AEP West Zone 1.3 AEP Operating Companies 1.3a Affiliate 1.4 Ancillary Services 1.5 Annual Transmission Costs
1.6 Application 1.6a CFE 1.7 Chapter 25 1.8 Commission 1.9 Completed Application 1.10 Control Area 1.11 RESERVED 1.12 Curtailment 1.13 Delivering Party 1.14 Designated Agent 1.15 Direct Assignment Facilities 1.16 ECAR 1.17 Eligible Customer 1.18 ERCOT 1.19 ERCOT Protocols 1.20 ERCOT IO 1.21 ERCOT Regional Transmission Service 1.22 ERCOT Regional Transmission Service Customer 1.23 ERCOT Transmission Network 1.24 Facilities Study 1.25 Firm Point-to-Point Transmission Service 1.26 Good Utility Practice 1.27 High-Voltage Direct Current Facilities (or "HVDC Facilities") 1.28 Interconnection Agreement 1.29 Interruption 1.30 Load Ratio Share 1.31 Load Shedding 1.32 Long-Term Firm Point-To-Point Transmission Service 1.33 Native Load Customers 1.34 NERC 1.35 Network Customer 1.36 Network Integration Transmission Service 1.37 Network Load 1.38 Network Operating Agreement 1.39 Network Operating Committee 1.40 Network Resource 1.41 Network Upgrades 1.42 Non-Firm Point-To-Point Transmission Service 1.42a Non-Firm Sale 1.43 Open Access Same-Time Information System (OASIS) 1.44 Part I 1.45 Part II 1.46 Part III 1.47 Part IV 1.48 Parties 1.49 Point(s) of Delivery
1.50 Point(s) of Receipt 1.51 Point-To-Point Transmission Service 1.52 Power Purchaser 1.52a Pre-Confirmed Application 1.53 PSO 1.54 PUCT 1.55 QSE 1.56 Receiving Party 1.57 Regional Transmission Group (RTG) 1.58 Reserved Capacity 1.59 Retail Electric Provider (REP) 1.60 Service Agreement 1.61 Service Commencement Date 1.62 Short-Term Firm Point-To-Point Transmission Service 1.63 SPP 1.64 SWEPCO 1.64a System Condition 1.65 System Impact Study 1.65a TCC 1.65b TNC 1.66 Third-Party Sale 1.67 Transmission Customer 1.68 Transmission Provider 1.69 Transmission Provider's Monthly Transmission System Peak 1.70 Transmission Service 1.71 Transmission System 1.72 PJM 2 Initial Allocation and Renewal Procedures 2.1 Not Applicable 2.2 Reservation Priority for Existing Firm Service Customers 3 Ancillary Services 3.1 System Scheduling, System Control and Dispatch Service 3.2 System Reactive Supply and Voltage Control from Generation Sources Service 3.3 System Regulation and Frequency Response Service 3.4 System Energy Imbalance Service 3.5 System Operating Reserve - Spinning Reserve Service (SPP) 3.6 System Operating Reserve - Supplemental Reserve Service (SPP)
3.7 Generator Imbalance Service 4 Open Access Same-Time Information System (OASIS) 5 RESERVED 6 Reciprocity 7 Billing and Payment 7.1 Billing Procedure 7.2 Interest on Unpaid Balances 7.3 Customer Default
8 Accounting for the Transmission Provider's Use of the Tariff 8.1 Transmission Revenues 8.2 Study Costs and Revenues 9 Regulatory Filings 10 Force Majeure and Indemnification 10.1 Force Majeure 10.2 Indemnification 11 Creditworthiness 12 Dispute Resolution Procedures 12.1 Internal Dispute Resolution Procedures 12.2 External Arbitration Procedures 12.3 Arbitration Decisions 12.4 Costs 12.5 Arbitration under Part IV 12.6 Rights Under The Federal Power Act II POINT-TO-POINT TRANSMISSION SERVICE Preamble Nature of Firm Point-To-Point Transmission Service 13.1 Term 13.2 Reservation Priority 13.3 Use of Firm Transmission Service by the Transmission Provider 13.4 Service Agreements 13.5 Transmission Customer Obligations for Facility Additions or Redispatch Costs 13.6 Curtailment of Firm Transmission Service 13.7 Classification of Firm Transmission Service 13.8 Scheduling of Firm Point-To-Point Transmission Service 13.9 Commonly Owned Facilities 14 Nature of Non-Firm Point-To-Point Transmission Service 14.1 Term 14.2 Reservation Priority 14.3 Use of Non-Firm Point-To-Point Transmission Service by the Transmission Provider 14.4 Service Agreements 14.5 Classification of Non-Firm Point-To-Point Transmission Service 14.6 Scheduling of Non-Firm Point-To-Point Transmission Service 14.7 Curtailment or Interruption of Service 14.8 Commonly Owned Facilities 15 Service Availability 15.1 General Conditions 15.2 Determination of Available Transmission Capability 15.3 Initiating Service in the Absence of an Executed Service Agreement 15.4 Obligation to Provide Transmission Service that Requires Expansion or Modification of the Transmission System
15.5 Deferral of Service 15.6 Other Transmission Service Schedules 15.7 Real Power Losses 16 Transmission Customer Responsibilities 16.1 Conditions Required of Transmission Customers 16.2 Transmission Customer Responsibility for Third-Party Arrangements 17 Procedures for Arranging Firm Point-To-Point Transmission Service 17.1 Application 17.2 Completed Application 17.3 Deposit 17.4 Notice of Deficient Application 17.5 Response to a Completed Application 17.6 Execution of Service Agreement 17.7 Extensions for Commencement of Service 18 Procedures for Arranging Non-Firm Point-To-Point Transmission Service 18.1 Application 18.2 Completed Application 18.3 Reservation of Non-Firm Point-To-Point Transmission Service 18.4 Determination of Available Transmission Capability 19 Additional Study Procedures For Firm Point-To-Point Transmission Service Requests 19.1 Notice of Need for System Impact Study 19.2 System Impact Study Agreement and Cost Reimbursement 19.3 System Impact Study Procedures 19.4 Facilities Study Procedures 19.5 Facilities Study Modifications 19.6 Due Diligence in Completing New Facilities 19.7 Partial Interim Service 19.8 Expedited Procedures for New Facilities 20 Procedures if The Transmission Provider is Unable to Complete New Transmission Facilities for Firm Point-To-Point Transmission Service 20.1 Delays in Construction of New Facilities 20.2 Alternatives to the Original Facility Additions 20.3 Refund Obligation for Unfinished Facility Additions 21 Provisions Relating to Transmission Construction and Services on the Systems of Other Utilities 21.1 Responsibility for Third-Party System Additions 21.2 Coordination of Third-Party System Additions 22 Changes in Service Specifications 22.1 Modifications On a Non-Firm Basis 22.2 Modification On a Firm Basis 23 Sale or Assignment of Transmission Service 23.1 Procedures for Assignment or Transfer of Service 23.2 Limitations on Assignment or Transfer of Service
23.3 Information on Assignment or Transfer of Service 24 Metering and Power Factor Correction at Receipt and Delivery Point(s) 24.1 Transmission Customer Obligations 24.2 Transmission Provider Access to Metering Data 24.3 Power Factor 25 Compensation for Transmission Service 26 Stranded Cost Recovery 27 Compensation for New Facilities and Redispatch Costs III. NETWORK INTEGRATION TRANSMISSION SERVICE Preamble Nature of Network Integration Transmission Service 28.1 Scope of Service 28.2 Transmission Provider Responsibilities 28.3 Network Integration Transmission Service 28.4 Secondary Service 28.5 Real Power Losses 28.6 Restrictions on Use of Service 29 Initiating Service 29.1 Condition Precedent for Receiving Service 29.2 Application Procedures 29.3 Technical Arrangements to be Completed Prior to Commencement of Service 29.4 Network Customer Facilities 29.5 Filing of Service Agreement 30 Network Resources 30.1 Designation of Network Resources 30.2 Designation of New Network Resources 30.3 Termination of Network Resources 30.4 Operation of Network Resources 30.5 Network Customer Redispatch Obligation 30.6 Transmission Arrangements for Network Resources Not Physically Interconnected With The Transmission Provider 30.7 Limitation on Designation of Network Resources 30.8 Use of Interface Capacity by the Network Customer 30.9 Network Customer Owned Transmission Facilities 31 Designation of Network Load 31.1 Network Load 31.2 New Network Loads Connected With the Transmission Provider 31.3 Network Load Not Physically Interconnected with the Transmission Provider 31.4 New Interconnection Points 31.5 Changes in Service Requests 31.6 Annual Load and Resource Information Updates 32 Additional Study Procedures For Network Integration Transmission Service Requests
32.1 Notice of Need for System Impact Study 32.2 System Impact Study Agreement and Cost Reimbursement 32.3 System Impact Study Procedures 32.4 Facilities Study Procedures 33 Load Shedding and Curtailments 33.1 Procedures 33.2 Transmission Constraints 33.3 Cost Responsibility for Relieving Transmission Constraints 33.4 Curtailments of Scheduled Deliveries 33.5 Allocation of Curtailments 33.6 Load Shedding 33.7 System Reliability 34 Rates and Charges 34.1 Monthly Demand Charge 34.2 Determination of Network Customer's Monthly Network Load 34.3 Determination of Transmission Provider's Monthly Transmission System Load 34.4 Redispatch Charge 34.5 Stranded Cost Recovery 35 Operating Arrangements 35.1 Operation under The Network Operating Agreement 35.2 Network Operating Agreement 35.3 Network Operating Committee IV ERCOT REGIONAL TRANSMISSION SERVICE 36 ERCOT Regional Transmission Service 36.1 Purpose 36.2 Nature of Transmission Service 37 Availability of Transmission Service 37.1 General Conditions 37.2 Transmission Service Requirements 37.3 Transmission Provider Responsibilities 37.4 Construction of New Facilities 38 Initiating Service 38.1 Conditions Precedent for Receiving Service 38.2 Application Procedures for ERCOT Regional Transmission Service 38.3 Facilities Study 38.4 Technical Arrangements to be Completed Prior to Commencement of Service 38.5 Transmission Customer Facilities 38.6 Transmission Arrangements for Resources Located Outside of the ERCOT Region 38.7 Changes in Service Requests 38.8 Annual Load and Resource Information Updates 38.9 Termination of Transmission Service
38.10 Initiating Service in the Absence of an Executed Service Agreement 39 Rates and Charges 39.1 Demand Charge for ERCOT Regional Transmission Service 39.2 Commercial Terms for Transmission Service 40 System Reliability 41 ERCOT Ancillary Services SCHEDULE 1 SYSTEM SCHEDULING, SYSTEM CONTROL AND DISPATCH SERVICE SCHEDULE 2 SYSTEM REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION SOURCES SERVICE SCHEDULE 3 SYSTEM REGULATION AND FREQUENCY RESPONSE SERVICE SCHEDULE 4 SYSTEM ENERGY IMBALANCE SERVICE (SPP) SCHEDULE 4A RESERVED SCHEDULE 5 SYSTEM OPERATING RESERVE -- SPINNING RESERVE SERVICE (SPP) SCHEDULE 6 SYSTEM OPERATING RESERVE -- SUPPLEMENTAL RESERVE SERVICE (SPP) SCHEDULE 7 LONG-TERM FIRM AND SHORT-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE SCHEDULE 8 NON-FIRM POINT-TO-POINT TRANSMISSION SERVICE SCHEDULE 9 LOSS COMPENSATION SERVICE SCHEDULE 10 GENERATOR IMBALANCE SERVICE ATTACHMENT A
Form Of Service Agreement For Firm Point-To-Point Transmission Service ATTACHMENT A-1 Form of Service Agreement for the Resale, Reassignment or Transfer of Point-To-Point Transmission Service ATTACHMENT B Form Of Service Agreement For Non-Firm Point-To-Point Transmission Service ATTACHMENT C Methodology To Assess Available Transfer Capability ATTACHMENT D Methodology for Completing a System Impact Study ATTACHMENT E-1 Index of Firm Point-To-Point Transmission Customers Under Part II of the Tariff ATTACHMENT E-2 Index of Non-Firm Point-To-Point Transmission Service Customers Under Part II of the Tariff ATTACHMENT F Service Agreement For Network Integration Transmission Service ATTACHMENT G Network Operating Agreement ATTACHMENT H Annual Transmission Revenue Requirement and Monthly Service Charges For Network Integration Transmission Service ATTACHMENT I Index of Network Integration Transmission Service Customers Under Part III of the Tariff ATTACHMENT J Form of Service Agreement for ERCOT Regional Transmission Service ATTACHMENT K Annual Transmission Revenue Requirement for ERCOT Regional Transmission Service
ATTACHMENT L Index of ERCOT Regional Transmission Service Customers ATTACHMENT M Procedures for Addressing Parallel Flows ATTACHMENT N Creditworthiness Procedures ATTACHMENT O North American Electric Reliability Council Transmission Loading Relief ("TLR") Procedures - Eastern Interconnection ATTACHMENT P Reserved ATTACHMENT Q Reserved ATTACHMENT R Transmission Planning Process ATTACHMENT S Reserved ATTACHMENT T Proforma Interconnection and Local Delivery Service Agreement
I COMMON SERVICE PROVISIONS
1 Definitions
1.1 AEP East Zone: The integrated electric utility system consisting of the generating and transmission
facilities of Appalachian Power Company, Columbus Southern Power Company, Indiana
Michigan Power Company, Kentucky Power Company, Kingsport Power Company,
Ohio Power Company, and Wheeling Power Company, or their successors in interest to
the transmission business. On October 1, 2004, PJM became the Transmission Provider
for the AEP East Zone.
1.2 AEP West Zone: The integrated electric utility system consisting of the electric generating and
transmission facilities of PSO, SWEPCO and TNC, and the transmission facilities of
TCC, or their successor in interest to the transmission business.
1.3 AEP Operating Companies: The public utilities that own the transmission facilities in the AEP East Zone and
the AEP West Zone and operate the transmission facilities in the AEP West Zone. On
October 1, 2004, PJM began operating the AEP East Zone transmission facilities.
1.3a Affiliate: With respect to a corporation, partnership or other entity, each such other
corporation, partnership or other entity that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with, such
corporation, partnership or other entity.
1.4 Ancillary Services: Those services that are necessary to support the transmission of capacity and
energy from resources to loads while maintaining reliable operation of the Transmission
Provider's Transmission System in accordance with Good Utility Practice.
1.5 Annual Transmission Costs: The total annual costs for each of the AEP East Zone and AEP West Zone of the
Transmission System for purposes of Network Integration Transmission Service shall be
the amounts specified in Attachment H-14 of the PJM OATT and Attachment H of this
AEP OATT, respectively, until amended by the Transmission Provider or modified by
the Commission.
1.6 Application: A request by an Eligible Customer for transmission service pursuant to the
provisions of the Tariff.
1.6a CFE: The electric power and transmission utility in Mexico known as Comisión Federal
de Electricidad.
1.7 Chapter 25: Chapter 25, Subchapter I, Division 1 of the PUCT’s Substantive Rules, as
amended from time to time.
1.8 Commission: The Federal Energy Regulatory Commission.
1.9 Completed Application: An Application that satisfies all of the information and other requirements of the
Tariff, including any required deposit.
1.10 Control Area: An electric power system or combination of electric power systems to which a
common automatic generation control scheme is applied in order to:
(1) match, at all times, the power output of the generators within the electric
power system(s) and capacity and energy purchased from entities outside the electric
power system(s), with the load within the electric power system(s);
(2) maintain scheduled interchange with other Control Areas, within the limits
of Good Utility Practice;
(3) maintain the frequency of the electric power system(s) within reasonable
limits in accordance with Good Utility Practice; and
(4) provide sufficient generating capacity to maintain operating reserves in
accordance with Good Utility Practice.
1.11 RESERVED
1.12 Curtailment: A reduction in firm or non-firm transmission service in response to a transfer
capability shortage as a result of system reliability conditions.
1.13 Delivering Party: The entity supplying capacity and energy to be transmitted at Point(s) of Receipt.
1.14 Designated Agent: Any entity that performs actions or functions on behalf of the Transmission
Provider, an Eligible Customer, or the Transmission Customer required under the Tariff.
1.15 Direct Assignment Facilities: Facilities or portions of facilities that are constructed by the Transmission
Provider for the sole use/benefit of a particular Transmission Customer requesting service
under the Tariff. Direct Assignment Facilities shall be specified in the Service
Agreement that governs service to the Transmission Customer and shall be subject to
Commission approval.
1.16 ECAR: The regional reliability council operated under the East Central Area Reliability
Coordination Agreement, or its successor in function.
1.17 Eligible Customer: (i) Any electric utility (including the Transmission Provider and any power
marketer), Federal power marketing agency, or any person generating electric energy for
sale for resale is an Eligible Customer under the Tariff. For purposes of Part IV of this
Tariff, an Eligible Customer shall also be any Distribution Service Provider, as that term
is defined in Chapter 25, that distributes electricity to retail customers on behalf of a REP
and any Non Opt-In Entity, as that term is defined in the ERCOT Protocols, that
distributes electricity to retail customers in ERCOT. Electric energy sold or produced by
such entity may be electric energy produced in the United States, Canada or Mexico.
However, with respect to transmission service that the Commission is prohibited from
ordering by Section 212(h) of the Federal Power Act, such entity is eligible only if the
service is provided pursuant to a state requirement that the Transmission Provider offer
the unbundled transmission service, or pursuant to a voluntary offer of such service by
the Transmission Provider.
(ii) Any retail customer taking unbundled transmission service pursuant to a state
requirement that the Transmission Provider offer the transmission service, or pursuant to
a voluntary offer of such service by the Transmission Provider, is an Eligible Customer
under the Tariff.
1.18 ERCOT: Electric Reliability Council of Texas, which in a geographic sense refers to the
area served by electric utilities that are not synchronously interconnected with electric
utilities outside of the State of Texas, or its successor in function.
1.19 ERCOT Protocols: Shall mean the documents adopted by ERCOT, and approved by the PUCT,
including any attachments or exhibits referenced in the Protocols, as amended from time
to time, that contain the scheduling, operating, planning, reliability, and settlement
(including customer registration) policies, rules, guidelines, procedures, standards, and
criteria of ERCOT.
1.20 ERCOT IO: A Texas nonprofit corporation that has been certified by the PUCT as the
Independent Organization for the ERCOT Region.
1.21 ERCOT Regional Transmission Service: The Transmission Service offered under Part IV of this Tariff.
1.22 ERCOT Regional Transmission Service Customer: An Eligible Customer taking ERCOT Regional Transmission Service under Part
IV of this Tariff.
1.23 ERCOT Transmission Network: The interconnected bulk power delivery system comprised of the transmission
systems located and operated in ERCOT, including the TCC and TNC Transmission
Systems.
1.24 Facilities Study: An engineering study conducted by the Transmission Provider, or its agent, to
determine the required modifications to the Transmission Provider's Transmission
System, or the ERCOT Transmission Network, including the cost and scheduled
completion date for such modifications, that will be required to provide the requested
transmission service.
1.25 Firm Point To Point Transmission Service: Transmission Service under this Tariff that is reserved and/or scheduled between
specified Points of Receipt and Delivery pursuant to Part II of this Tariff.
1.26 Good Utility Practice: Any of the practices, methods and acts engaged in or approved by a significant
portion of the electric utility industry during the relevant time period, or any of the
practices, methods and acts which, in the exercise of reasonable judgment in light of the
facts known at the time the decision was made, could have been expected to accomplish
the desired result at a reasonable cost consistent with good business practices, reliability,
safety and expedition. Good Utility Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but rather to be acceptable
practices, methods, or acts generally accepted in the region, including those practices
required by Federal Power Act section 215(a)(4).
1.27 High Voltage Direct Current Facilities (or HVDC Facilities) Either (i) the North Interconnection, consisting of high voltage back-to-back
converters and related facilities on either side of the ERCOT-SPP border at Oklaunion,
Texas, having a nominal capacity of 200 MW, or (ii) the East Interconnection consisting
of: (a) a 345 kV alternating current (AC) switchyard facility at the TU Electric
Monticello generating station necessary for the interconnection of the TU Electric AC
electric system with the Welsh-Monticello Line; (b) the Welsh-Monticello Line, which is
a 345 kV AC transmission line between the Monticello Switchyard Facility described in
the preceding clause and the High Voltage Direct Current (HVDC) Terminal described in
the succeeding clause; (c) the HVDC Terminal, consisting of high voltage back-to-back
converters, having a nominal capacity of 600 MW, of which the Transmission Provider
and its affiliates own 300 MW, and related facilities and the land on which such facilities
are located; and (d) a 345 kV AC switchyard facility at the SWEPCO Welsh generating
station necessary for the interconnection of the SWEPCO AC electric system with such
HVDC Terminal, or (iii) the Eagle Pass Interconnection consisting of high voltage back-
to-back converters and related facilities on the United States side of the U.S. – Mexico
border at Eagle Pass, Texas, having a nominal capacity of 36 MW or (iv) any
combination of the North Interconnection, the East Interconnection and the Eagle Pass
Interconnection.
1.28 Interconnection Agreement:
An agreement between an Eligible Customer that owns electric facilities in
ERCOT and one or more of the ERCOT Transmission Providers that sets forth
requirements for physical connection and interconnected operations. A Transmission
Customer that owns electrical facilities in ERCOT must have such an agreement with
each of the ERCOT Transmission Providers to which the Transmission Customer is
physically connected.
1.29 Interruption: A reduction in non firm transmission service due to economic reasons pursuant to
Section 14.7.
1.30 Load Ratio Share: Ratio of a Transmission Customer's Network Load to the Transmission Provider's
total load computed in accordance with Attachment H and Sections 34.2 and 34.3 of the
Network Integration Transmission Service under Part III of the Tariff.
1.31 Load Shedding: The systematic reduction of system demand by temporarily decreasing load in
response to transmission system or area capacity shortages, system instability, or voltage
control considerations under Part III of the Tariff.
1.32 Long Term Firm Point To Point Transmission Service: Firm Point To Point Transmission Service under Part II of the Tariff with a term
of one year or more.
1.33 Native Load Customers: The wholesale and retail power customers of the Transmission Provider on whose
behalf the Transmission Provider, by statute, franchise, regulatory requirement, or
contract, has undertaken an obligation to construct and operate the Transmission
Provider's system to meet the reliable electric needs of such customers.
1.34 NERC: North American Electric Reliability Council, or its successor in function.
1.35 Network Customer: An entity receiving transmission service pursuant to the terms of the Transmission
Provider's Network Integration Transmission Service under Part III of the Tariff.
1.36 Network Integration Transmission Service: The transmission service provided under Part III of the Tariff.
1.37 Network Load: The load that a Network Customer designates for Network Integration
Transmission Service under Part III of the Tariff. The Network Customer's Network
Load shall include all load served by the output of any Network Resources designated by
the Network Customer. A Network Customer may elect to designate less than its total
load as Network Load but may not designate only part of the load at a discrete Point of
Delivery. Where a Eligible Customer has elected not to designate a particular load at
discrete points of delivery as Network Load, the Eligible Customer is responsible for
making separate arrangements under Part II of the Tariff for any Point To Point
Transmission Service that may be necessary for such non designated load.
1.38 Network Operating Agreement: An executed agreement that contains the terms and conditions under which the
Network Customer shall operate its facilities and the technical and operational matters
associated with the implementation of Network Integration Transmission Service under
Part III of the Tariff.
1.39 Network Operating Committee: A group made up of representatives from the Network Customer(s) and the
Transmission Provider established to coordinate operating criteria and other technical
considerations required for implementation of Network Integration Transmission Service
under Part III of this Tariff.
1.40 Network Resource: Any designated generating resource owned, purchased or leased by a Network
Customer under the Network Integration Transmission Service Tariff. Network
Resources do not include any resource, or any portion thereof, that is committed for sale
to third parties or otherwise cannot be called upon to meet the Network Customer's
Network Load on a non interruptible basis, except for purposes of fulfilling obligations
under a Commission-approved reserve sharing program.
1.41 Network Upgrades:
Modifications or additions to transmission related facilities that are integrated
with and support the Transmission Provider's overall Transmission System for the
general benefit of all users of such Transmission System.
1.42 Non Firm Point To Point Transmission Service: Point-To-Point Transmission Service under the Tariff that is reserved and
scheduled on an as available basis and is subject to Curtailment or Interruption as set
forth in Section 14.7 under Part II of this Tariff. Non Firm Point To Point Transmission
Service is available on a stand alone basis for periods ranging from one hour to one year.
1.42a Non-Firm Sale: An energy sale for which receipt or delivery may be interrupted for any reason or
no reason, without liability on the part of either the buyer or seller.
1.43 Open Access Same Time Information System (OASIS): The information system and standards of conduct contained in Part 37 of the
Commission's regulations and all additional requirements implemented by subsequent
Commission orders dealing with OASIS. OASIS means the PJM OASIS, the SPP
OASIS and the ERCOT OASIS, as applicable.
1.44 Part I: Tariff Definitions and Common Service Provisions contained in Sections 1
through 12.
1.45 Part II:
Tariff Sections 13 through 27 pertaining to Point To Point Transmission Service
in conjunction with the applicable Common Service Provisions of Part I and appropriate
Schedules and Attachments.
1.46 Part III: Tariff Sections 28 through 35 pertaining to Network Integration Transmission
Service in conjunction with the applicable Common Service Provisions of Part I and
appropriate Schedules and Attachments.
1.47 Part IV: Tariff Sections 36 through 40 pertaining to the use of the TCC and TNC
Transmission Systems operated in ERCOT in conjunction with the use by a Transmission
Customer of the ERCOT Transmission Network to serve load within ERCOT and in
conjunction with the applicable Common Service Provisions of Part I and the applicable
Schedules and Attachments.
1.48 Parties: The Transmission Owner, Transmission Provider, and the Transmission Customer
receiving service under the Tariff.
1.49 Point(s) of Delivery: Point(s) on the Transmission Provider's Transmission System where capacity and
energy transmitted by the Transmission Provider will be made available to the Receiving
Party under Part II of the Tariff. The Point(s) of Delivery shall be specified in the
Service Agreement for Long-Term Firm Point-To-Point Transmission Service and shall
be in the AEP East Zone or the portion of the AEP West Zone located in the SPP.
1.50 Point(s) of Receipt: Point(s) of interconnection on the Transmission Provider's Transmission System
where capacity and energy will be made available to the Transmission Provider by the
Delivering Party under Part II of the Tariff. The Point(s) of Receipt shall be specified in
the Service Agreement for Long-Term Firm Point-To-Point Transmission Service and
shall be in the AEP East Zone or the portion of the AEP West Zone located in the SPP.
1.51 Point To Point Transmission Service: The reservation and transmission of capacity and energy on either a firm or non
firm basis from the Point(s) of Receipt to the Point(s) of Delivery under Part II of the
Tariff. Such service shall be provided on the AEP Operating Companies’ transmission
facilities in the AEP East Zone and in the portion of the AEP West Zone located in the
SPP.
1.52 Power Purchaser: The entity that is purchasing the capacity and energy to be transmitted under the
Tariff.
1.52a Pre-Confirmed Application: An Application that commits the Eligible Customer to execute a Service
Agreement upon receipt of notification that the Transmission Provider can provide the
requested Transmission Service.
1.53 PSO: Public Service Company of Oklahoma, or the successor in interest to the
transmission business of PSO.
1.54 PUCT: Public Utility Commission of Texas.
1.55 QSE: A person qualified by the ERCOT IO to submit schedules to and settle payments
with, the ERCOT IO.
1.56 Receiving Party: The entity receiving the capacity and energy transmitted by the Transmission
Provider to Point(s) of Delivery.
1.57 Regional Transmission Group (RTG): A voluntary organization of transmission owners, transmission users and other
entities approved by the Commission to efficiently coordinate transmission planning (and
expansion), operation and use on a regional (and interregional) basis.
1.58 Reserved Capacity: The maximum amount of capacity and energy that the Transmission Provider
agrees to transmit for the Transmission Customer over the Transmission Provider's
Transmission System between the Point(s) of Receipt and the Point(s) of Delivery under
Part II of the Tariff. Reserved Capacity shall be expressed in terms of whole megawatts
on a sixty (60) minute interval (commencing on the clock hour) basis.
1.59 Retail Electric Provider (REP): A person certified by a state electric utility regulatory authority to sell electric
energy to retail customers.
1.60 Service Agreement: The initial agreement and any amendments or supplements thereto entered into by
the Transmission Customer and the Transmission Provider and/or the Transmission
Owner for service under the Tariff.
1.61 Service Commencement Date: The date the Transmission Provider begins to provide service pursuant to the
terms of an executed Service Agreement, or the date the Transmission Provider begins to
provide service in accordance with Section 15.3, Section 29.1, or Section 38.6 under the
Tariff.
1.62 Short Term Firm Point To Point Transmission Service: Firm Point To Point Transmission Service under Part II of the Tariff with a term
of less than one year.
1.63 SPP: Southwest Power Pool, or its successor in function.
1.64 SWEPCO: Southwestern Electric Power Company, or the successor in interest to the
transmission business of SWEPCO.
1.64a System Condition: A specified condition on the Transmission Provider’s system or on a neighboring
system, such as a constrained transmission element or flowgate, that may trigger
Curtailment of Long-Term Firm Point-to-Point Transmission Service using the
curtailment priority pursuant to Section 13.6. Such conditions must be identified in the
Transmission Customer’s Service Agreement.
1.65 System Impact Study: An assessment by the Transmission Provider of (i) the adequacy of the
Transmission System to accommodate a request for either Firm Point To Point
Transmission Service, Network Integration Transmission Service, or ERCOT Regional
Transmission Service and (ii) whether any additional costs may be incurred in order to
provide transmission service.
1.65a TCC: Texas Central Company or the successor in interest to the transmission business
of TCC.
1.65b TNC: Texas North Company or the successor in interest to the transmission business of
TNC.
1.66 Third-Party Sale: Any sale for resale in interstate commerce to a Power Purchaser that is not
designated as part of Network Load under the Network Integration Transmission Service.
1.67 Transmission Customer: Any Eligible Customer (or its Designated Agent) that (i) executes a Service
Agreement, or (ii) requests in writing that the Transmission Provider file with the
Commission, a proposed unexecuted Service Agreement to receive transmission service
under Part II of the Tariff. This term is used in the Part I Common Service Provisions to
include customers receiving transmission service under Part II, Part III or Part IV of this
Tariff.
1.68 Transmission Provider: The public utilities (or their Designated Agent) that own, control, or operate
facilities used for the transmission of electric energy in interstate commerce and provide
transmission service under the Tariff; provided, however, that in the case of service
provided on the ERCOT Transmission Network under Part IV of this Tariff, the term
refers in the plural form to all transmitting utilities that operate in ERCOT, when
preceded by an indefinite article the term in the singular form refers to any such
transmitting utility and when preceded by the definite article the term in the singular form
refers collectively to TCC and TNC.
1.69 Transmission Provider's Monthly Transmission System Pea Transmission Provider's Monthly Transmission System Peak: The maximum firm usage of the Transmission Provider's Transmission System in a calendar month.
1.70 Transmission Service: Point To Point Transmission Service provided under Part II of the Tariff on a firm
and non firm basis.
1.71 Transmission System: (1) The facilities owned, controlled or operated in ERCOT at or above 60
kilovolts owned, controlled, operated or supported by a Transmission Provider that are
used to provide transmission service in ERCOT under Part IV of this Tariff, including the
HVDC Facilities (such facilities of TCC and TNC being referred to herein collectively as
the "TCC and TNC Transmission Systems" and all such facilities in the aggregate being
referred to herein as the "ERCOT Transmission Network" as that term is defined in
Section 1.25 of this Tariff); or (2) the facilities owned, controlled or operated by the
Transmission Provider that are used to provide transmission service under Part II and Part
III of the Tariff (such facilities being referred to herein collectively as the "Transmission
System").
1.72 PJM: PJM Interconnection, L.L.C., or its successor in function.
2 Initial Allocation and Renewal Procedures
2.1 Not Applicable.
2.2 Reservation Priority For Existing Firm Service Customers Existing firm service customers (wholesale requirements and transmission only,
with a contract term of one year or more and retail, irrespective of term), have the right to
continue to take transmission service from the Transmission Provider when the contract
expires, rolls over or is renewed. This transmission reservation priority is independent of
whether the existing customer continues to purchase capacity and energy from the
Transmission Provider or elects to purchase capacity and energy from another supplier.
If at the end of the contract term, the Transmission Provider's Transmission System
cannot accommodate all of the requests for transmission service, the existing firm service
customer must agree to accept a contract term at least equal to the longest competing
request by any new Eligible Customer and to pay the current just and reasonable rate, as
approved by the Commission, for such service; provided that, the firm service customer
shall have a right of first refusal at the end of such service only if the new contract is for
five years or more. The existing firm service customer must provide notice to the
Transmission Provider whether it will exercise its right of first refusal no less than one
year prior to the expiration date of its transmission service agreement. This transmission
reservation priority for existing firm service customers is an ongoing right that may be
exercised at the end of all firm contract terms of one year or longer. Service agreements
subject to a right of first refusal entered into prior to November 4, 2008 ,or associated
with a transmission service request received prior to July 13, 2007, unless terminated,
will become subject to the five year/one year requirement on the first rollover date after
November 4, 2008; provided that, the one-year notice requirement shall apply to such
service agreements with five years or more left in their terms as of November 4, 2008.
3 Ancillary Services Ancillary Services are needed with transmission service to maintain reliability
within and among the Control Areas affected by the transmission service.
Services Under Part II and III of the Tariff: The Transmission Provider is
required to provide (or offer to arrange with the local Control Area operator as discussed
below), and the Transmission Customer is required to purchase, the following Ancillary
Services in the AEP East Zone and that portion of the AEP West Zone located in the SPP
(i) System Scheduling, System Control and Dispatch Service, and (ii) System Reactive
Supply and Voltage Control from Generation or Other Sources Service.
The Transmission Provider is required to offer to provide (or offer to arrange with
the local Control Area operator as discussed below) the following Ancillary Services only
to the Transmission Customer serving load within any of the Transmission Provider's
Control Areas: (i) System Regulation and Frequency Response Service, (ii) System
Energy Imbalance Service, (iii) System Operating Reserve Spinning Reserve Service
(SPP), and (iv) System Operating Reserve Supplemental Reserve Service (SPP). The
Transmission Customer serving load within one of the Transmission Provider's Control
Areas is required to acquire these Ancillary Services, whether from the Transmission
Provider, from a third party, or by self supply.
The Transmission Provider is required to provide (or offer to arrange with the
local Control Area Operator as discussed below), to the extent it is physically feasible to
do so from its resources or from resources available to it, Generator Imbalance Service
when Transmission Service is used to deliver energy from a generator located within its
Control Area. The Transmission Customer using Transmission Service to deliver energy
from a generator located within the Transmission Provider’s Control Area is required to
acquire Generator Imbalance Service, whether from the Transmission Provider, from a
third party, or by self-supply
The Transmission Customer may not decline the Transmission Provider's offer of
Ancillary Services unless it demonstrates that it has acquired the Ancillary Services from
another source. The Eligible Customer must list in its Application which Ancillary
Services it will purchase from the Transmission Provider. A Transmission Customer that
exceeds its firm reserved capacity at any Point of Receipt or Point of Delivery or an
Eligible Customer that uses Transmission Service at a Point of Receipt or Point of
Delivery that it has not reserved is required to pay for all of the Ancillary Services
identified in this section that were provided by the Transmission Provider associated with
the unreserved service. The Transmission Customer or Eligible Customer will pay for
Ancillary Services based on the amount of transmission service it used but did not
reserve.
If the Transmission Provider is a public utility providing transmission service but
is not a Control Area operator, it may be unable to provide some or all of the Ancillary
Services. In this case, the Transmission Provider can fulfill its obligation to provide
Ancillary Services outside ERCOT by acting as the Transmission Customer's agent to
secure these Ancillary Services from the Control Area operator. Where applicable, the
Transmission Customer may elect to (i) have the Transmission Provider act as its agent,
(ii) secure the Ancillary Services directly from the Control Area operator, or (iii) secure
the Ancillary Services (discussed in Schedules 3, 4, 5, 6 and 10) from a third party or by
self-supply when technically feasible. The Transmission Provider shall specify the rate
treatment and all related terms and conditions in the event of an unauthorized use of
Ancillary Services by the Transmission Customer.
The specific Ancillary Services, prices and/or compensation methods are
described on the Schedules that are attached to and made a part of the Tariff. Three
principal requirements apply to discounts for Ancillary Services provided by the
Transmission Provider in conjunction with its provision of transmission service as
follows: (1) any offer of a discount made by the Transmission Provider must be
announced to all Eligible Customers solely by posting on the OASIS, (2) any customer-
initiated requests for discounts (including requests for use by one's wholesale merchant or
an Affiliate's use) must occur solely by posting on the OASIS, and (3) once a discount is
negotiated, details must be immediately posted on the OASIS. A discount agreed upon
for an Ancillary Service must be offered for the same period to all Eligible Customers on
the Transmission Provider's system. Sections 3.1 through 3.7 below list the seven
Ancillary Services that FERC has ordered the Transmission Provider to provide in
connection with Transmission Service provided under Part II or Part III of this Tariff.
3.1 System Scheduling, System Control and Dispatch Service: The rates and/or methodology are described in Schedule 1.
3.2 System Reactive Supply and Voltage Control from Generati System Reactive Supply and Voltage Control from Generation or Other Sources Service: The rates and/or methodology are described in Schedule 2.
3.3 System Regulation and Frequency Response Service: Where applicable, the rates and/or methodology are described in Schedule 3.
3.4 System Energy Imbalance Service: Where applicable, the rates and/or methodology are described in Schedule 4.
3.5 System Operating Reserve Spinning Reserve Service (SPP):
Where applicable, the rates and/or methodology are described in Schedule 5.
3.6 System Operating Reserve Supplemental Reserve Service (SPP): Where applicable, the rates and/or methodology are described in Schedule 6.
3.7 Generator Imbalance Service: Where applicable the rates and/or methodology are described in Schedule 10.
Services Under Part IV of the Tariff: ERCOT Regional Transmission Service
Customers taking service under Part IV of this Tariff must arrange Ancillary Services in
ERCOT under the ERCOT Protocols. The Transmission Provider shall not provide
ERCOT Ancillary Services under this OATT. AEP will provide QSE and ancillary
services only to those ERCOT Regional Transmission Service Customers with whom
AEP has an interim QSE Agreement. Customers may obtain comparable ancillary
services from the ERCOT IO in its capacity.
4 Open Access Same Time Information System (OASIS) Terms and conditions regarding the Open Access Same-Time Information System
and standards of conduct are set forth in 18 C.F.R. § 37 of the Commission's regulations
(Open Access Same Time Information System and Standards of Conduct for Public
Utilities) and 18 C.F.R. § 38 of the Commission’s regulations (Business Practice
Standards and Communication Protocols for Public Utilities).
In the event available transfer capability as posted on the OASIS is insufficient to
accommodate a request for firm transmission service under Part II of this Tariff or
Network Integration Transmission Service under Part III of this Tariff, additional studies
may be required as provided by this Tariff pursuant to Sections 19 and 32 of this Tariff.
Eligible Customers requesting service under Parts II and III that involves the use of TCC
and TNC transmission facilities as well as parts of the Transmission System that are
operated in the SPP or ECAR must notify the SPP OASIS and the PJM OASIS, as
applicable. Eligible Customers requesting service under Part IV of this Tariff must notify
ERCOT.
The Transmission Provider shall post on OASIS and its public website an
electronic link to all rules, standards and practices that (i) relate to the terms and
conditions of transmission service, (ii) are not subject to a North American Energy
Standards Board (NAESB) copyright restriction, and (iii) are not otherwise included in
this Tariff. The Transmission Provider shall post on OASIS and on its public website an
electronic link to the NAESB website where any rules, standards and practices that are
protected by copyright may be obtained. The Transmission Provider shall also post on
OASIS and its public website an electronic link to a statement of the process by which
the Transmission Provider shall add, delete or otherwise modify the rules, standards and
practices that are not included in this tariff. Such process shall set forth the means by
which the Transmission Provider shall provide reasonable advance notice to
Transmission Customers and Eligible Customers of any such additions, deletions or
modifications, the associated effective date, and any additional implementation
procedures that the Transmission Provider deems appropriate.
5 RESERVED
6 Reciprocity A Transmission Customer receiving transmission service under this Tariff agrees
to provide comparable transmission service that it is capable of providing to the
Transmission Provider on similar terms and conditions over facilities used for the
transmission of electric energy owned, controlled or operated by the Transmission
Customer and over facilities used for the transmission of electric energy owned,
controlled or operated by the Transmission Customer's corporate Affiliates. A
Transmission Customer that is a member of, or takes transmission service from a power
pool, Regional Transmission Group, Regional Transmission Organization (RTO),
Independent System Operator (ISO) or other transmission organization approved by the
Commission for the operation of transmission facilities also agrees to provide comparable
transmission service to the transmission-owning members of such power pool and
Regional Transmission Group, RTO, ISO or other transmission organization on similar
terms and conditions over facilities used for the transmission of electric energy owned,
controlled or operated by the Transmission Customer and over facilities used for the
transmission of electric energy owned, controlled or operated by the Transmission
Customer's corporate Affiliates.
This reciprocity requirement applies not only to the Transmission Customer that
obtains transmission service under the Tariff, but also to all parties to a transaction that
involves the use of transmission service under the Tariff, including the power seller,
buyer and any intermediary, such as a power marketer. This reciprocity requirement also
applies to any Eligible Customer that owns, controls or operates transmission facilities
that uses an intermediary, such as a power marketer, to request transmission service
under the Tariff. If the Transmission Customer does not own, control or operate
transmission facilities, it must include in its Application a sworn statement of one of its
duly authorized officers or other representatives that the purpose of its Application is not
to assist an Eligible Customer to avoid the requirements of this provision. Without
limiting the generality of the foregoing, a Transmission Customer that has on file with the
PUCT a transmission tariff that meets the requirements of Chapter 25 of the PUCT's
Substantive Rules shall be deemed to satisfy this reciprocity requirement.
7 Billing and Payment
7.1 Billing Procedure: Within a reasonable time after the first day of each month, the Transmission
Provider shall submit an invoice to the Transmission Customer for the charges for all
services furnished under the Tariff during the preceding month. The invoice rendered for
service under Part II or Part III of this Tariff shall be paid by the Transmission Customer
within twenty (20) days of receipt. The invoice rendered for service under Part IV of this
Tariff shall be paid by the ERCOT Regional Transmission Service Customer within the
time period specified in Chapter 25. All payments shall be made in immediately
available funds payable to the Transmission Provider or by wire transfer to a bank named
by the Transmission Provider.
7.2 Interest on Unpaid Balances: Interest on any unpaid amounts (including amounts placed in escrow) for service
under Part II and Part III shall be calculated in accordance with the methodology
specified for interest on refunds in the Commission's regulations at 18 C.F.R. §
35.19a(a)(2)(iii). Interest on unpaid amounts for service provided under Part IV, shall be
calculated pursuant to Chapter 25. Interest on delinquent amounts shall be calculated
from the due date of the bill to the date of payment. When payments are made by mail,
bills shall be considered as having been paid on the date of receipt by the Transmission
Provider.
7.3 Customer Default: In the event the Transmission Customer fails, for any reason other than a billing
dispute as described below, to make payment to the Transmission Provider on or before
the due date as described above for service provided under Part II or Part III of this
Tariff, and such failure of payment is not corrected within thirty (30) calendar days after
the Transmission Provider notifies the Transmission Customer to cure such failure, a
default by the Transmission Customer shall be deemed to exist. Upon the occurrence of a
default, the Transmission Provider may initiate a proceeding with the Commission to
terminate service but shall not terminate service until the Commission so approves any
such request. In the event of a billing dispute between the Transmission Provider and the
Transmission Customer, the Transmission Provider will continue to provide service
under the Service Agreement as long as the Transmission Customer (i) continues to make
all payments not in dispute, and (ii) pays into an independent escrow account the portion
of the invoice in dispute, pending resolution of such dispute. If the Transmission
Customer fails to meet these two requirements for continuation of service, then the
Transmission Provider may provide notice to the Transmission Customer of its intention
to suspend service in sixty (60) days, in accordance with Commission policy. Section
39.2 of this Tariff shall govern customer default for service provided under Part IV of this
Tariff.
8 Accounting for the Transmission Provider's Use of the Tari Accounting for the Transmission Provider's Use of the Tariff The Transmission Provider shall record the following amounts, as outlined below.
8.1 Transmission Revenues: Include in a separate operating revenue account or subaccount the revenues it
receives from Transmission Service when making Third Party Sales under Part II of the
Tariff.
8.2 Study Costs and Revenues: Include in a separate transmission operating expense account or subaccount, costs
properly chargeable to expense that are incurred to perform any System Impact Studies or
Facilities Studies which the Transmission Provider conducts to determine if it must
construct new transmission facilities or upgrades necessary for its own uses, including
making Third Party Sales under the Tariff; and include in a separate operating revenue
account or subaccount the revenues received for System Impact Studies or Facilities
Studies performed when such amounts are separately stated and identified in the
Transmission Customer's billing under the Tariff.
9 Regulatory Filings Nothing contained in the Tariff or any Service Agreement shall be construed as
affecting in any way the right of the Transmission Provider to unilaterally make
application to the Commission for a change in rates, terms and conditions, charges,
classification of service, Service Agreement, rule or regulation under Section 205 of the
Federal Power Act and pursuant to the Commission's rules and regulations promulgated
thereunder.
Nothing contained in the Tariff or any Service Agreement shall be construed as
affecting in any way the ability of any Party receiving service under the Tariff to exercise
its rights under the Federal Power Act and pursuant to the Commission's rules and
regulations promulgated thereunder.
10 Force Majeure and Indemnification
10.1 Force Majeure: An event of Force Majeure means any act of God, labor disturbance, act of the
public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident
to machinery or equipment, any Curtailment, order, regulation or restriction imposed by
governmental military or lawfully established civilian authorities, or any other cause
beyond a Party's control. A Force Majeure event does not include an act of negligence or
intentional wrongdoing. Neither the Transmission Provider nor the Transmission
Customer will be considered in default as to any obligation under this Tariff if prevented
from fulfilling the obligation due to an event of Force Majeure. However, a Party whose
performance under this Tariff is hindered by an event of Force Majeure shall make all
reasonable efforts to perform its obligations under this Tariff.
10.2 Indemnification: The Transmission Customer shall at all times indemnify, defend, and save the
Transmission Provider harmless from, any and all damages, losses, claims, including
claims and actions relating to injury to or death of any person or damage to property,
demands, suits, recoveries, costs and expenses, court costs, attorney fees, and all other
obligations by or to third parties, arising out of or resulting from the Transmission
Provider's performance of its obligations under this Tariff on behalf of the Transmission
Customer, except in cases of negligence or intentional wrongdoing by the Transmission
Provider.
11 Creditworthiness The Transmission Provider will specify its Creditworthiness Procedures in
Attachment N.
12 Dispute Resolution Procedures
12.1 Internal Dispute Resolution Procedures: Any dispute between a Transmission Customer and the Transmission Provider
involving transmission service under the Tariff (excluding applications for rate changes
or other changes to the Tariff, or to any Service Agreement entered into under the Tariff,
which shall be presented directly to the Commission for resolution) shall be referred to a
designated senior representative of the Transmission Provider and a senior representative
of the Transmission Customer for resolution on an informal basis as promptly as
practicable. In the event the designated representatives are unable to resolve the dispute
within thirty (30) days, or such other period as the Parties may agree upon, by mutual
agreement, such dispute may be submitted to arbitration and resolved in accordance with
the arbitration procedures set forth below.
12.2 External Arbitration Procedures:
Any arbitration initiated under the Tariff with regard to service under Part II or
Part III shall be conducted before a single neutral arbitrator appointed by the Parties. If
the Parties fail to agree upon a single arbitrator within ten (10) days of the referral of the
dispute to arbitration, each Party shall choose one arbitrator who shall sit on a three
member arbitration panel. The two arbitrators so chosen shall within twenty (20) days
select a third arbitrator to chair the arbitration panel. In either case, the arbitrators shall
be knowledgeable in electric utility matters, including electric transmission and bulk
power issues, and shall not have any current or past substantial business or financial
relationships with any party to the arbitration (except prior arbitration). The arbitrator(s)
shall provide each of the Parties an opportunity to be heard and, except as otherwise
provided herein, shall generally conduct the arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association and any
applicable Commission regulations or Regional Transmission Group rules.
12.3 Arbitration Decisions: Unless otherwise agreed, the arbitrator(s) contemplated by Section 12.2 of this
Tariff shall render a decision within ninety (90) days of appointment and shall notify the
Parties in writing of such decision and the reasons therefor. The arbitrator(s) shall be
authorized only to interpret and apply the provisions of the Tariff and any Service
Agreement entered into under the Tariff and shall have no power to modify or change
any of the above in any manner. The decision of the arbitrator(s) shall be final and
binding upon the Parties, and judgment on the award may be entered in any court having
jurisdiction. The decision of the arbitrator(s) may be appealed solely on the grounds that
the conduct of the arbitrator(s), or the decision itself, violated the standards set forth in
the Federal Arbitration Act and/or the Administrative Dispute Resolution Act. The final
decision of the arbitrator must also be filed with the Commission if it affects
jurisdictional rates, terms and conditions of service or facilities.
12.4 Costs: Each Party shall be responsible for its own costs incurred during the arbitration
process and for the following costs, if applicable: (A) the cost of the arbitrator chosen by
the Party to sit on the three member panel and one half of the cost of the third arbitrator
chosen; or (B) one half the cost of the single arbitrator jointly chosen by the Parties.
12.5 Arbitration under Part IV: Any arbitration initiated with regard to service under Part IV of this Tariff shall be
conducted under the arbitration procedures set forth in the ERCOT Protocols.
12.6 Rights Under The Federal Power Act: Nothing in this section shall restrict the rights of any party to file a Complaint
with the Commission under relevant provisions of the Federal Power Act.
II POINT-TO-POINT TRANSMISSION SERVICE
Preamble The Transmission Provider will provide Firm and Non-Firm Point-To-Point
Transmission Service in the AEP West Zone pursuant to the applicable terms and
conditions set forth in this Tariff and in the Transmission Customer’s Service Agreement;
provided that other than Point-to-Point Transmission Service that is grandfathered under
Sections 1.14a and 37.4 of the Open Access Transmission Service Tariff for service
offered by the SPP (SPP Tariff), the use of the portion of the Transmission System
located in the SPP for Firm and Non-Firm Point-to-Point Transmission Service shall be
arranged for and taken under the SPP Tariff in accordance with the applicable terms and
conditions of the SPP Tariff. Point-to-Point Transmission Service is for the receipt of
capacity and energy at designated Point(s) of Receipt and the transfer of such capacity
and energy to designated Point(s) of Delivery.
Charges for Point-to-Point Transmission Service, if applicable, are based on
whether the Point of Delivery is located in the AEP East Zone or the AEP West Zone.
To accomplish the delivery of energy from the Point of Receipt to the Point of Delivery
(or beyond the Point of Delivery to the load ultimately to be served with the energy to be
transmitted), the Transmission Customer may also be required to arrange and pay for
service under the transmission tariffs of other transmission providers, including without
limitation the PJM and SPP Tariffs.
Delivery to a Point of Delivery in the AEP East Zone
1. Point-to-Point Transmission Service to a Point of Delivery in the AEP East Zone
shall be subject to the PJM Tariff.
Delivery to a Delivery Point in the AEP West Zone for Transactions that are
Grandfathered Under the SPP Tariff
2. Any Short-Term Firm or Non-Firm Point-to-Point Transmission Service the
arrangements for which were accepted and confirmed prior to June 1, 1998 and
any Long-Term Firm Point-to-Point Transmission Service provided under a
service agreement executed prior to April 1, 1999, and that, in either case, makes
use of the portion of the Transmission System located in the SPP are
grandfathered under the SPP Tariff. Such grandfathered transactions shall
continue to be taken under the rates, terms and conditions of Part II of this Tariff
for Point-to-Point Transmission Service to a Point of Delivery in the AEP West
Zone and the Transmission Customer shall remain liable to the Transmission
Provider for an AEP West Zone charge under Schedule 7 or Schedule 8 of the
Tariff for such transmission service.
Delivery to a Point of Delivery in the West Zone for Transactions that are
Not Grandfathered Under the SPP Tariff
Into SPP from the AEP East Zone
3. A Transmission Customer that takes Point-to-Point Transmission Service under
the SPP Tariff to a Point of Delivery in the AEP West Zone portion of the SPP
from a Point of Receipt in the AEP East Zone shall not be liable to the
Transmission Provider for charges under Schedule 7 or Schedule 8 of this Tariff,
but will be subject to charges under other Transmission Provider’s Tariffs, such as
PJM.
Into ERCOT from the AEP East Zone or from the SPP
4. A Transmission Customer that takes Point-to-Point Transmission Service to a
Point of Delivery in ERCOT from a Point of Receipt in the AEP East Zone or in
the SPP shall be liable to the Transmission Provider for charges under Part IV of
this Tariff, and not under Schedule 7 or Schedule 8 of this Tariff, if the energy to
be delivered is to be used to serve load in ERCOT. Such transactions would be
subject to charges under the SPP Tariff, and potentially under the transmission
tariffs of other Transmission Providers, including PJM.
Through ERCOT from the AEP East Zone or the AEP West Zone
5. A Transmission Customer that takes Point-to-Point Transmission Service from a
Point of Receipt in the AEP East Zone or in the SPP to a Point of Delivery in
ERCOT for ultimate delivery outside of ERCOT (e.g., to Mexico) shall be liable
to the Transmission Provider for an AEP West Zone charge under Schedule 7 or
Schedule 8 of this Tariff. Such transactions would be subject to charges under the
SPP Tariff, and potentially under the transmission tariffs of other Transmission
Providers, including PJM and CFE.
Within SPP Only
6. A Transmission Customer that takes Point-to-Point Transmission Service from a
Point of Receipt in the PSO/SWEPCO control area for delivery to a Point of
Delivery in the SPP for ultimate delivery in the SPP or outside the SPP (other
than to or through ERCOT or the AEP East Zone) shall be subject to the SPP
Tariff and not be subject to any charges under Schedule 7 or Schedule 8 of this
Tariff.
13 Nature of Firm Point-To-Point Transmission Service
13.1 Term: The minimum term of Firm Point-To-Point Transmission Service shall be one day
and the maximum term shall be specified in the Service Agreement.
13.2 Reservation Priority:
(i) Long-Term Firm Point-To-Point Transmission Service shall be available
on a first-come, first-served basis, i.e., in the chronological sequence in which each
Transmission Customer has reserved service.
(ii) Reservations for Short-Term Firm Point-To-Point Transmission Service
will be conditional based upon the length of the requested transaction or reservation.
However, Pre-Confirmed Applications for Short-Term Point-to-Point Transmission
Service will receive priority over earlier-submitted requests that are not Pre-Confirmed
and that have equal or shorter duration. Among requests or reservations with the same
duration and, as relevant, pre-confirmation status (-pre-confirmed, confirmed, or not
confirmed), priority will be given to an Eligible Customer’s request or reservation that
offers the highest price, followed by the date and time of the request or reservation.
(iii) If the Transmission System becomes oversubscribed, requests for service
may preempt competing reservations up to the following conditional reservation
deadlines: one day before the commencement of daily service, one week before the
commencement of weekly service, and one month before the commencement of monthly
service. Before the conditional reservation deadline, if available transfer capability is
insufficient to satisfy all requests and reservations, an Eligible Customer with a
reservation for shorter term service or equal duration service and lower price has the right
of first refusal to match any longer term request or equal duration service with a higher
price before losing its reservation priority. A longer term competing request for Short-
Term Firm Point-To-Point Transmission Service will be granted if the Eligible Customer
with the right of first refusal does not agree to match the competing request within 24
hours (or earlier if necessary to comply with the scheduling deadlines provided in section
13.8) from being notified by the Transmission Provider of a longer-term competing
request for Short-Term Firm Point-To-Point Transmission Service. When a longer
duration request preempts multiple shorter duration reservations, the shorter duration
reservations shall have simultaneous opportunities to exercise the right of first refusal.
Duration, price and time of response will be used to determine the order by which the
multiple shorter duration reservations will be able to exercise the right of first refusal.
After the conditional reservation deadline, service will commence pursuant to the terms
of Part II of the Tariff.
(iv.) Firm Point-To-Point Transmission Service will always have a reservation
priority over Non-Firm Point-To-Point Transmission Service under the Tariff. All Long-
Term Firm Point-To-Point Transmission Service will have equal reservation priority with
Native Load Customers and Network Customers. Reservation priorities for existing firm
service customers are provided in Section 2.2.
13.3 Use of Firm Transmission Service by the Transmission Pr Use of Firm Transmission Service by the Transmission Provider:
The Transmission Provider will be subject to the rates, terms and conditions of
Part II of the Tariff when making Third Party Sales under (i) agreements executed on or
after July 9, 1996 or (ii) agreements executed prior to the aforementioned date that the
Commission requires to be unbundled, by the date specified by the Commission. The
Transmission Provider will maintain separate accounting, pursuant to Section 8, for any
use of the Point To Point Transmission Service to make Third Party Sales.
13.4 Service Agreements:
The Transmission Provider shall offer a standard form Firm Point To Point
Transmission Service Agreement (Attachment A) to an Eligible Customer when it
submits a Completed Application for Long-Term Firm Point To Point Transmission
Service. The Transmission Provider shall offer a standard form Firm Point-To-Point
Transmission Service Agreement (Attachment A) to an Eligible Customer when it first
submits a Completed Application for Short-Term Firm Point-To-Point Transmission
Service pursuant to the Tariff. Executed Service Agreements that contain the information
required under the Tariff shall be filed with the Commission in compliance with
applicable Commission regulations. An Eligible Customer that uses Transmission Service
at a Point of Receipt or Point of Delivery that it has not reserved and that has not
executed a Service Agreement will be deemed, for purposes of assessing any appropriate
charges and penalties, to have executed the appropriate Service Agreement. The Service
Agreement shall, when applicable, specify any conditional curtailment options selected
by the Transmission Customer. Where the Service Agreement contains conditional
curtailment options and is subject to a biennial reassessment as described in Section 15.4,
the Transmission Provider shall provide the Transmission Customer notice of any
changes to the curtailment conditions no less than 90 days prior to the date for imposition
of new curtailment conditions. Concurrent with such notice, the Transmission Provider
shall provide the Transmission Customer with the reassessment study and a narrative
description of the study, including the reasons for changes to the number of hours per
year or System Conditions under which conditional curtailment may occur.
13.5 Transmission Customer Obligations for Facility Addition Transmission Customer Obligations for Facility Additions or Redispatch Costs:
In cases where the Transmission Provider determines that the Transmission
System is not capable of providing Firm Point To Point Transmission Service without (1)
degrading or impairing the reliability of service to Native Load Customers, Network
Customers and other Transmission Customers taking Firm Point To Point Transmission
Service, or (2) interfering with the Transmission Provider's ability to meet prior firm
contractual commitments to others, the Transmission Provider will be obligated to
expand or upgrade its Transmission System pursuant to the terms of Section 15.4. The
Transmission Customer must agree to compensate the Transmission Provider for any
necessary transmission facility additions pursuant to the terms of Section 27. To the
extent the Transmission Provider can relieve any system constraint by redispatching the
Transmission Provider's resources, it shall do so, provided that the Eligible Customer
agrees to compensate the Transmission Provider pursuant to the terms of Section 27 and
agrees to either (i) compensate the Transmission Provider for any necessary transmission
facility additions or (ii)accept the service subject to a biennial reassessment by the
Transmission Provider of redispatch requirements as described in Section 15.4. Any
redispatch, Network Upgrade or Direct Assignment Facilities costs to be charged to the
Transmission Customer on an incremental basis under the Tariff will be specified in the
Service Agreement prior to initiating service.
13.6 Curtailment of Firm Transmission Service: In the event that a Curtailment on the Transmission Provider's Transmission
System, or a portion thereof, is required to maintain reliable operation of such system,
and the systems directly and indirectly interconnected with Transmission Provider’s
Transmission System, Curtailments will be made on a non discriminatory basis to the
transaction(s) that effectively relieve the constraint. Transmission Provider may elect to
implement such Curtailments pursuant to the Transmission Loading Relief procedures
specified in Attachment O. If multiple transactions require Curtailment, to the extent
practicable and consistent with Good Utility Practice, including actions taken to respond
to directives given by the applicable NERC security coordinator, the Transmission
Provider will curtail service to Network Customers and Transmission Customers taking
Firm Point To Point Transmission Service on a basis comparable to the curtailment of
service to the Transmission Provider's Native Load Customers. All Curtailments will be
made on a non discriminatory basis; however, Non Firm Point To Point Transmission
Service shall be subordinate to Firm Transmission Service. Long-Term Firm Point-to-
Point Service subject to conditions described in Section 15.4 shall be curtailed with
secondary service in cases where the conditions apply, but otherwise will be curtailed on
a pro rata basis with other Firm Transmission Service. When the Transmission Provider
determines that an electrical emergency exists on its Transmission System and
implements emergency procedures to Curtail Firm Transmission Service, the
Transmission Customer shall make the required reductions upon request of the
Transmission Provider. However, the Transmission Provider reserves the right to Curtail,
in whole or in part, any Firm Transmission Service provided under the Tariff when, in the
Transmission Provider's sole discretion, an emergency or other unforeseen condition
impairs or degrades the reliability of its Transmission System. The Transmission
Provider will notify all affected Transmission Customers in a timely manner of any
scheduled Curtailments. In the event the Transmission Customer fails to implement a
Curtailment within ten minutes as directed by the Transmission Provider, the
Transmission Customer shall pay, in addition to any other charges for service, a charge
equal to the product of two times the amount of transmission service that the
Transmission Customer fails to curtail and the maximum charge for Firm Point-To-Point
Transmission Service for the lesser of the transaction term or one month.
13.7 Classification of Firm Transmission Service: (a) The Transmission Customer taking Firm Point To Point Transmission
Service may (1) change its Receipt and Delivery Points to obtain service on a non firm
basis consistent with the terms of Section 22.1 or (2) request a modification of the Points
of Receipt or Delivery on a firm basis pursuant to the terms of Section 22.2.
(b) The Transmission Customer may purchase transmission service to make
sales of capacity and energy from multiple generating units that are on the Transmission
Provider's Transmission System. For such a purchase of transmission service, the
resources will be designated as multiple Points of Receipt, unless the multiple generating
units are at the same generating plant in which case the units would be treated as a single
Point of Receipt.
(c) The Transmission Provider shall provide firm deliveries of capacity and
energy from the Point(s) of Receipt to the Point(s) of Delivery. Each Point of Receipt at
which firm transmission capacity is reserved by the Transmission Customer shall be set
forth in the Firm Point To Point Service Agreement for Long-Term Firm Transmission
Service along with a corresponding capacity reservation associated with each Point of
Receipt. Points of Receipt and corresponding capacity reservations shall be as mutually
agreed upon by the Parties for Short-Term Firm Transmission. Each Point of Delivery at
which firm transfer capability is reserved by the Transmission Customer shall be set forth
in the Firm Point To Point Service Agreement for Long- Term Firm Transmission
Service along with a corresponding capacity reservation associated with each Point of
Delivery. Points of Delivery and corresponding capacity reservations shall be as
mutually agreed upon by the Parties for Short-Term Firm reservations at the Point(s) of
Receipt, or (2) the sum of the capacity reservations at the Point(s) of Delivery shall be the
Transmission Customer's Reserved Capacity. The Transmission Customer will be billed
for its Reserved Capacity under the terms of Schedule 7. The Transmission Customer
may not exceed its firm capacity reserved at each Point of Receipt and each Point of
Delivery except as otherwise specified in Section 22. In the event that a Transmission
Customer (including Third-Party Sales by the Transmission Provider) exceeds its firm
reserved capacity at any Point of Receipt or Point of Delivery or uses Transmission
Service at a Point of Receipt or Point of Delivery that it has not reserved, the
Transmission Customer shall pay, in addition to the otherwise applicable charge, a
penalty equal to the product of two times the applicable charge and the amount of
capacity used in excess of the Reserved Capacity for the lesser of the term of the
transaction or one month.
13.8 Scheduling of Firm Point To Point Transmission Service: Schedules for the Transmission Customer's Firm Point To Point Transmission
Service must comply with applicable NERC and Regional Reliability Council Policies,
Transmission Customers shall submit all energy delivery schedules electronically in a
form specified by the Transmission Provider. Schedules must be submitted to the
Transmission Provider, and to the ERCOT IO if the transaction involves the use of the
TCC and TNC Transmission Systems. Schedules must be submitted no later than 10:00
a.m. of the day prior to commencement of such service (or at such other time
corresponding to the scheduling deadline followed by an applicable regional transmission
entity). Schedules submitted after 10:00 a.m. will be accommodated, if practicable.
Hour to hour schedules of any capacity and energy that is to be delivered must be stated
in increments of 1,000 kW per hour. Transmission Customers within the Transmission
Provider's service area with multiple requests for Transmission Service at a Point of
Receipt, each of which is under 1,000 kW per hour, may consolidate their service
requests at a common point of receipt into units of 1,000 kW per hour for scheduling and
billing purposes. Scheduling changes will be permitted up to twenty (20) minutes before
the start of the next clock hour (or at such other time corresponding to the scheduling
deadline followed by an applicable regional transmission entity) provided that the
Delivering Party and Receiving Party also agree to the schedule modification. The
Transmission Provider will furnish to the Delivering Party's system operator hour to hour
schedules equal to those furnished by the Receiving Party (unless reduced for losses) and
shall deliver the capacity and energy provided by such schedules. Should the
Transmission Customer, Delivering Party or Receiving Party revise or terminate any
schedule, such party shall immediately notify the Transmission Provider, and the
Transmission Provider shall have the right to adjust accordingly the schedule for capacity
and energy to be received and to be delivered.
13.9 Commonly Owned Facilities: Notwithstanding any other provision of this Section 13, Firm Point-To-Point
Transmission Service provided pursuant to this Tariff shall not adversely affect the
contractual or ownership rights of any entity that owns or operates, jointly with any of the
AEP Operating Companies, any transmission facility or facilities included within the
Transmission System.
14 Nature of Non Firm Point To Point Transmission Service
14.1 Term: Non Firm Point To Point Transmission Service will be available for periods
ranging from one (1) hour to one (1) month. However, a Purchaser of Non Firm Point To
Point Transmission Service will be entitled to reserve a sequential term of service (such
as a sequential monthly terms without having to wait for the initial term to expire before
requesting another monthly term) so that the total time period for which the reservation
applies is greater than one month, subject to the requirements of Section 18.3.
14.2 Reservation Priority: Non Firm Point To Point Transmission Service shall be available from transfer
capability in excess of that needed for reliable service to Native Load Customers,
Network Customers and other Transmission Customers taking Long Term and Short
Term Firm Point To Point Transmission Service. A higher priority will be assigned first
to requests or reservations with a longer duration of service and second to Pre-Confirmed
Applications. In the event the Transmission System is constrained, competing requests of
the same Pre-Confirmation status and equal duration will be prioritized based on the
highest price offered by the Eligible Customer for the Transmission Service. Eligible
Customers that have already reserved shorter term service have the right of first refusal to
match any longer term request before being preempted. A longer term competing request
for Non-Firm Point-To-Point Transmission Service will be granted if the Eligible
Customer with the right of first refusal does not agree to match the competing request:
(a) immediately for hourly Non-Firm Point-To-Point Transmission Service after
notification by the Transmission Provider; and, (b) within 24 hours (or earlier if
necessary to comply with the scheduling deadlines provided in section 14.6) for Non-
Firm Point-To-Point Transmission Service other than hourly transactions after
notification by the Transmission Provider. Transmission service for Network Customers
from resources other than designated Network Resources will have a higher priority than
any Non Firm Point To Point Transmission Service. Non Firm Point To Point
Transmission Service over secondary Point(s) of Receipt and Point(s) of Delivery will
have the lowest reservation priority under the Tariff.
14.3 Use of Non Firm Point To Point Transmission Service by
Use of Non-Firm Point-To-Point Transmission Service by the Transmission Provider: The Transmission Provider will be subject to the rates, terms and conditions of
Part II of the Tariff when making Third Party Sales under (i) agreements executed on or
after July 9, 1996 or (ii) agreements executed prior to the aforementioned date that the
Commission requires to be unbundled, by the date specified by the Commission. The
Transmission Provider will maintain separate accounting, pursuant to Section 8, for any
use of Non Firm Point To Point Transmission Service to make Third Party Sales.
14.4 Service Agreements: The Transmission Provider shall offer a standard form Non Firm Point To Point
Transmission Service Agreement (Attachment B) to an Eligible Customer when it first
submits a Completed Application for Non Firm Point To Point Transmission Service
pursuant to the Tariff. Executed Service Agreements that contain the information
required under the Tariff shall be filed with the Commission in compliance with
applicable Commission regulations.
14.5 Classification of Non Firm Point To Point Transmission Classification of Non-Firm Point-To-Point Transmission Service: Non Firm Point To Point Transmission Service shall be offered under terms and
conditions contained in Part II of the Tariff. The Transmission Provider undertakes no
obligation under the Tariff to plan its Transmission System in order to have sufficient
capacity for Non Firm Point To Point Transmission Service. Parties requesting Non Firm
Point To Point Transmission Service for the transmission of firm power do so with the
full realization that such service is subject to availability and to Curtailment or
Interruption under the terms of the Tariff. In the event that a Transmission Customer
(including Third Party Sales by the Transmission Provider) exceeds its non firm capacity
reservation at any Point of Receipt or Point of Delivery, the Transmission Customer shall
pay, in addition to the otherwise applicable charge, a penalty equal to the product of two
times the applicable charge and the amount of capacity used in excess of the Reserved
Capacity for the lesser of the term of the transaction or one month. Non Firm Point To
Point Transmission Service shall include transmission of energy on an hourly basis and
transmission of scheduled short term capacity and energy on a daily, weekly or monthly
basis, but not to exceed one year's reservation for any one Application, under Schedule 8.
14.6 Scheduling of Non Firm Point To Point Transmission Serv Scheduling of Non Firm Point To Point Transmission Service:
Schedules for Non-Firm Point-To-Point Transmission Service must comply with
applicable NERC and Regional Reliability Council Policies, Transmission Customers
shall submit all energy delivery schedules electronically in a form specified by the
Transmission Provider. Schedules must be submitted to the Transmission Provider and to
the ERCOT IO if the transaction involves the use of the TCC and TNC Transmission
Systems. Schedules should be submitted no later than 2:00 p.m. of the day prior to
commencement of such service (or at such other time corresponding to the scheduling
deadline followed by an applicable regional transmission entity). Schedules submitted
after 2:00 p.m. will be accommodated, if practicable. Hour to hour schedules of energy
that is to be delivered must be stated in increments of 1,000 kW per hour. Transmission
Customers within the Transmission Provider's service area with multiple requests for
Transmission Service at a Point of Receipt, each of which is under 1,000 kW per hour,
may consolidate their schedules at a common Point of Receipt into units of 1,000 kW per
hour. Scheduling changes will be permitted up to twenty (20) minutes before the start of
the next clock hour (or at such other time corresponding to the scheduling deadline
followed by an applicable regional transmission entity) provided that the Delivering Party
and Receiving Party also agree to the schedule modification. The Transmission Provider
will furnish to the Delivering Party's system operator hour to hour schedules equal to
those furnished by the Receiving Party (unless reduced for losses) and shall deliver the
capacity and energy provided by such schedules. Should the Transmission Customer,
Delivering Party or Receiving Party revise or terminate any schedule, such party shall
immediately notify the Transmission Provider, and the Transmission Provider shall have
the right to adjust accordingly the schedule for capacity and energy to be received and to
be delivered.
14.7 Curtailment or Interruption of Service: The Transmission Provider reserves the right to Curtail, in whole or in part, Non
Firm Point To Point Transmission Service provided under the Tariff for reliability
reasons when an emergency or other unforeseen condition threatens to impair or degrade
the reliability of its Transmission System or the systems directly and indirectly
interconnected with Transmission Provider’s Transmission System. Transmission
Provider may elect to implement such Curtailments pursuant to the Transmission
Loading Relief procedures specified in Attachment O. The Transmission Provider
reserves the right to Interrupt, in whole or in part, Non Firm Point To Point Transmission
Service provided under the Tariff for economic reasons in order to accommodate (1) a
request for Firm Transmission Service, (2) a request for Non Firm Point To Point
Transmission Service of greater duration, (3) a request for Non Firm Point To Point
Transmission Service of equal duration with a higher price, (4) transmission service for
Network Customers from non designated resources, (5) directives given by the applicable
NERC security coordinator or (6) transmission service for Firm Point-to-Point
Transmission Service during conditional curtailment periods as described in Section 15.4.
The Transmission Provider also will discontinue or reduce service to the Transmission
Customer to the extent that deliveries for transmission are discontinued or reduced at the
Point(s) of Receipt. Where required, Curtailments or Interruptions will be made on a non
discriminatory basis to the transaction(s) that effectively relieve the constraint, however,
Non Firm Point To Point Transmission Service shall be subordinate to Firm Transmission
Service. If multiple transactions require Curtailment or Interruption, to the extent
practicable and consistent with Good Utility Practice, Curtailments or Interruptions will
be made to transactions of the shortest term (e.g., hourly non firm transactions will be
Curtailed or Interrupted before daily non firm transactions and daily non firm transactions
will be Curtailed or Interrupted before weekly non firm transactions). Transmission
service for Network Customers from resources other than designated Network Resources
will have a higher priority than any Non Firm Point To Point Transmission Service under
the Tariff. Non Firm Point To Point Transmission Service over secondary Point(s) of
Receipt and Point(s) of Delivery will have a lower priority than any Non Firm Point To
Point Transmission Service under the Tariff. The Transmission Provider will provide
advance notice of Curtailment or Interruption where such notice can be provided
consistent with Good Utility Practice. In the event the Transmission Customer fails to
implement a Curtailment within ten minutes or an Interruption within twenty (20)
minutes after being so directed by the Transmission Provider (or at such other time
corresponding to the scheduling deadline followed by an applicable regional transmission
entity), the Transmission Customer shall pay, in addition to any other charges for service,
a charge equal to the product of two times the amount of transmission service that the
Transmission Customer fails to curtail and the maximum charge for Firm Point-to-Point
Transmission Service for the lesser of the transaction term or one month.
14.8 Commonly Owned Facilities: Notwithstanding any other provision of this Section 14, Non-Firm Point-To-Point
Transmission Service provided pursuant to this Tariff shall not adversely affect the
contractual or ownership rights of any entity that owns or operates, jointly with any of the
AEP Operating Companies, any transmission facility or facilities included within the
Transmission System.
15 Service Availability
15.1 General Conditions: The Transmission Provider will provide Firm and Non Firm Point To Point
Transmission Service over, on or across its Transmission System to any Transmission
Customer that has met the requirements of Section 16.
15.2 Determination of Available Transfer Capability: A description of the Transmission Provider's specific methodology for assessing
available transfer capability posted on the OASIS (Section 4) is contained in Attachment
C of the Tariff. In the event sufficient transfer capability may not exist to accommodate a
service request, the Transmission Provider will respond by performing a System Impact
Study.
15.3 Initiating Service in the Absence of an Executed Servic Initiating Service in the Absence of an Executed Service Agreement: If the Transmission Provider and the Transmission Customer requesting Firm or
Non Firm Point To Point Transmission Service cannot agree on all the terms and
conditions of the Point To Point Service Agreement, the Transmission Provider shall file
with the Commission, within thirty (30) days after the date the Transmission Customer
provides written notification directing the Transmission Provider to file, an unexecuted
Point To Point Service Agreement containing terms and conditions deemed appropriate
by the Transmission Provider for such requested Transmission Service. The
Transmission Provider shall commence providing Transmission Service subject to the
Transmission Customer agreeing to (i) compensate the Transmission Provider at
whatever rate the Commission ultimately determines to be just and reasonable, and (ii)
comply with the terms and conditions of the Tariff including posting appropriate security
deposits in accordance with the terms of Section 17.3.
15.4 Obligation to Provide Transmission Service that Requir Obligation to Provide Transmission Service that Requires Expansion or Modification of the Transmission System, Redispatch or Conditional Curtailment: (a) If the Transmission Provider determines that it cannot accommodate a
Completed Application for Firm Point To Point Transmission Service because of
insufficient capability on its Transmission System, the Transmission Provider will use
due diligence to expand or modify its Transmission System to provide the requested Firm
Transmission Service, consistent with its planning obligations in Attachment R provided
the Transmission Customer agrees to compensate the Transmission Provider for such
costs pursuant to the terms of Section 27. The Transmission Provider will conform to
Good Utility Practice and its planning obligations in Attachment R in determining the
need for new facilities and in the design and construction of such facilities. The
obligation applies only to those facilities that the Transmission Provider has the right to
expand or modify.
(b) If the Transmission Provider determines that it cannot accommodate a
Completed Application for Long-Term Firm Point-To-Point Transmission Service
because of insufficient capability on its Transmission System, the Transmission Provider
will use due diligence to provide redispatch from its own resources until (i) Network
Upgrades are completed for the Transmission Customer, (ii) the Transmission Provider
determines through a biennial reassessment that it can no longer reliably provide the
redispatch, or (iii) the Transmission Customer terminates the service because of
redispatch changes resulting from the reassessment. A Transmission Provider shall not
unreasonably deny self-provided redispatch or redispatch arranged by the Transmission
Customer from a third party resource.
(c) If the Transmission Provider determines that it cannot accommodate a
Completed Application for Long-Term Firm Point-To-Point Transmission Service
because of insufficient capability on its Transmission System, the Transmission Provider
will offer the Firm Transmission Service with the condition that the Transmission
Provider may curtail the service prior to the curtailment of other Firm Transmission
Service for a specified number of hours per year or during System Condition(s). If the
Transmission Customer accepts the service, the Transmission Provider will use due
diligence to provide the service until (i) Network Upgrades are completed for the
Transmission Customer, (ii) the Transmission Provider determines through a biennial
reassessment that it can no longer reliably provide such service, or (iii) the Transmission
Customer terminates the service because the reassessment increased the number of hours
per year of conditional curtailment or changed the System Conditions.
15.5 Deferral of Service: The Transmission Provider may defer providing service until it completes
construction of new transmission facilities or upgrades needed to provide Firm Point To
Point Transmission Service whenever the Transmission Provider determines that
providing the requested service would, without such new facilities or upgrades, impair or
degrade reliability to any existing firm services.
15.6 Other Transmission Service Schedules: Eligible Customers receiving transmission service under other agreements on file
with the Commission may continue to receive transmission service under those
agreements until such time as those agreements terminate or are otherwise modified by
the Commission.
15.7 Real Power Losses: Real Power Losses are associated with all transmission service. The
Transmission Provider is not obligated to provide Real Power Losses, but the
Transmission Customer may purchase capacity and energy necessary to compensate for
losses from the Transmission Provider pursuant to Schedule 9, Loss Compensation
Service. The Transmission Customer is responsible for replacing losses associated with
all transmission service provided under Part II as calculated by the Transmission
Provider. The applicable Real Power Loss factors are as follows:
For transmission to a Point of Delivery in the AEP East Zone, the loss factor is
3.3%. For transmission to a Point of Delivery in the AEP West Zone, the loss factor is
2.9% provided, however, that for transactions that involve the transmission of energy
generated in ERCOT to a load located in ERCOT, the Transmission Customer shall
provide energy to cover losses in according with the ERCOT Protocols. A load serving
entity that takes ERCOT Regional Transmission Service under Part IV of this Tariff and
also takes Transmission Service under the SPP Tariff to import energy into ERCOT to
serve its load customers in ERCOT shall provide for energy to cover losses in according
with the ERCOT Protocols, and under the loss compensation provision of the SPP Tariff.
A Transmission Customer that takes service under Part II of this Tariff in
conjunction with the terms of the SPP Tariff to transmit energy from a Point of Receipt
located in ERCOT to a Point of Delivery located outside of ERCOT shall be responsible
for providing losses according to the ERCOT Protocols, and for compensating the SPP
for losses under the SPP Tariff.
16 Transmission Customer Responsibilities
16.1 Conditions Required of Transmission Customers: Point To Point Transmission Service shall be provided by the Transmission
Provider only if the following conditions are satisfied by the Transmission Customer:
a. The Transmission Customer has pending a Completed Application for
service;
b. The Transmission Customer meets the creditworthiness criteria set forth in
Section 11;
c. Prior to the time service under Part II of the Tariff commences, the
Transmission Customer will have arrangements in place for any other transmission
service necessary to effect the delivery from the generating source to the Transmission
Provider and to effect the delivery from the Transmission Provider to the Transmission
Customer or the ultimate wholesale purchaser from the Transmission Customer;
d. The Transmission Customer agrees to pay for any facilities constructed
and chargeable to such Transmission Customer under Part II of the Tariff, whether or not
the Transmission Customer takes service for the full term of its reservation;
e. The Transmission Customer provides the information required by the
Transmission Provider’s planning process established in Attachment R; and
f. The Transmission Customer has executed a Point To Point Service
Agreement or has agreed to receive service pursuant to Section 15.3
16.2 Transmission Customer Responsibility for Third Party Ar Transmission Customer Responsibility for Third PartyArrangements: Any scheduling arrangements that may be required by other electric systems shall
be the responsibility of the Transmission Customer requesting service. The Transmission
Customer shall provide, unless waived by the Transmission Provider, notification to the
Transmission Provider identifying such systems and authorizing them to schedule the
capacity and energy to be transmitted by the Transmission Provider pursuant to Part II of
the Tariff on behalf of the Receiving Party at the Point of Delivery or the Delivering
Party at the Point of Receipt. However, the Transmission Provider will undertake
reasonable efforts to assist the Transmission Customer in making such arrangements,
including without limitation, providing any information or data required by such other
electric system pursuant to Good Utility Practice. A Transmission Customer shall
coordinate its use of the HVDC Facilities with the ERCOT IO, the SPP security
coordinator, and CFE as applicable. The Transmission Customer shall be liable for any
administrative or other charge imposed by CFE, the ERCOT IO or the SPP security
coordinator.
17 Procedures for Arranging Firm Point To Point Transmission Procedures for Arranging Firm Point To Point Transmission Service
17.1 Application: A request for Firm Point To Point Transmission Service for periods of one year or
longer must contain a written Application to:
American Electric Power Service Corporation Attn: Director, Transmission and Interconnection Services 1 Riverside Plaza Columbus, Ohio 43215-2373
at least sixty (60) days in advance of the calendar month in which service is to
commence. The Transmission Provider will consider requests for such firm service on
shorter notice when feasible. Requests for firm service for periods of less than one year
shall be subject to expedited procedures that shall be negotiated between the Parties
within the time constraints provided in Section 17.5. All Firm Point To Point
Transmission Service requests should be submitted by entering the information listed
below on the OASIS. In the event the OASIS is not in operation, a Completed
Application may be submitted by (i) transmitting the required information to the
Transmission Provider by telefax, or (ii) providing the information via overnight
delivery. Submission by telefax will provide a time stamped record for establishing the
priority of the Application.
17.2 Completed Application: A Completed Application shall provide all of the information included in 18
C.F.R. § 2.20 including but not limited to the following:
(i) The identity, address, telephone number and facsimile number of the
entity requesting service;
(ii) A statement that the entity requesting service is, or will be upon
commencement of service, an Eligible Customer under the Tariff;
(iii) The location of the Point(s) of Receipt and Point(s) of Delivery and the
identities of the Delivering Parties and the Receiving Parties;
(iv) The location of the generating facility(ies) supplying the capacity and
energy and the location of the load ultimately served by the capacity and energy
transmitted. The Transmission Provider will treat this information as confidential except
to the extent that disclosure of this information is required by this Tariff, by regulatory or
judicial order, for reliability purposes pursuant to Good Utility Practice or pursuant to
RTG transmission information sharing agreements. The Transmission Provider shall
treat this information consistent with the standards of conduct contained in Part 37 of the
Commission's regulations;
(v) A description of the supply characteristics of the capacity and energy to be
delivered;
(vi) An estimate of the capacity and energy expected to be delivered to the
Receiving Party;
(vii) The Service Commencement Date and the term of the requested
Transmission Service;
(viii) The transmission capacity requested for each Point of Receipt and each
Point of Delivery on the Transmission Provider's Transmission System; customers may
combine their requests for service in order to satisfy the minimum transmission capacity
requirement. The Transmission Provider shall treat this information consistent with the
standards of conduct contained in Part 37 of the Commission's regulations;
(ix) A statement indicating that, if the Eligible Customer submits a Pre-
Confirmed Application, the Eligible Customer will execute a Service Agreement upon
receipt of notification that the Transmission Provider can provide the requested
Transmission Service; and
(x) Any additional information required by the Transmission Provider’s
planning process established in Attachment R.
(xi) The Eligible Customer's NERC registered DUNS number as displayed on
www.tsin.com; and
(xii) The identity and contact number of the Eligible Customer's accounts
payable personnel.
17.3 Deposit: A Completed Application for Firm Point To Point Transmission Service also shall
include a deposit of either one month's charge for Reserved Capacity or the full charge
for Reserved Capacity for service requests of less than one month. If the Application is
rejected by the Transmission Provider because it does not meet the conditions for service
as set forth herein, or in the case of requests for service arising in connection with losing
bidders in a Request For Proposals (RFP), said deposit shall be returned with interest less
any reasonable costs incurred by the Transmission Provider in connection with the review
of the losing bidder's Application. The deposit also will be returned with interest less any
reasonable costs incurred by the Transmission Provider if the Transmission Provider is
unable to complete new facilities needed to provide the service. If an Application is
withdrawn or the Eligible Customer decides not to enter into a Service Agreement for
Firm Point To Point Transmission Service, the deposit shall be refunded in full, with
interest, less reasonable costs incurred by the Transmission Provider to the extent such
costs have not already been recovered by the Transmission Provider from the Eligible
Customer. The Transmission Provider will provide to the Eligible Customer a complete
accounting of all costs deducted from the refunded deposit, which the Eligible Customer
may contest if there is a dispute concerning the deducted costs. Deposits associated with
construction of new facilities are subject to the provisions of Section 19. If a Service
Agreement for Firm Point To Point Transmission Service is executed, the deposit, with
interest, will be returned to the Transmission Customer upon expiration or termination of
the Service Agreement for Firm Point To Point Transmission Service. Applicable
interest shall be computed in accordance with the Commission's regulations at 18 C.F.R.
§ 35.19a(a)(2)(iii), and shall be calculated from the day the deposit check is credited to
the Transmission Provider's account. Notwithstanding the foregoing, the Transmission
Provider may, on a non-discriminatory basis, waive the requirement that a deposit
accompany an Application where the Eligible Customer has established its
creditworthiness pursuant to Section 11 of this Tariff and is not in default in its
obligations under this Tariff, as defined in Section 7.3 of this Tariff, at the time of the
Application.
17.4 Notice of Deficient Application: If an Application fails to meet the requirements of the Tariff, the Transmission
Provider shall notify the entity requesting service within fifteen (15) days of receipt of the
reasons for such failure. The Transmission Provider will attempt to remedy minor
deficiencies in the Application through informal communications with the Eligible
Customer. If such efforts are unsuccessful, the Transmission Provider shall return the
Application, along with any deposit, with interest. Upon receipt of a new or revised
Application that fully complies with the requirements of Part II of the Tariff, the Eligible
Customer shall be assigned a new priority consistent with the date of the new or revised
Application.
17.5 Response to a Completed Application: Following receipt of a Completed Application for Firm Point To Point
Transmission Service, the Transmission Provider shall make a determination of available
transfer capability as required in Section 15.2. The Transmission Provider shall notify
the Eligible Customer as soon as practicable, but not later than thirty (30) days after the
date of receipt of a Completed Application either (i) if it will be able to provide service
without performing a System Impact Study or (ii) if such a study is needed to evaluate the
impact of the Application pursuant to Section 19.1. Responses by the Transmission
Provider must be made as soon as practicable to all completed applications (including
applications by its own merchant function) and the timing of such responses must be
made on a non-discriminatory basis.
17.6 Execution of Service Agreement: Whenever the Transmission Provider determines that a System Impact Study is
not required and that the service can be provided, it shall notify the Eligible Customer as
soon as practicable but no later than thirty (30) days after receipt of the Completed
Application. Where a System Impact Study is required, the provisions of Section 19 will
govern the execution of a Service Agreement. Failure of an Eligible Customer to execute
and return the Service Agreement or request the filing of an unexecuted service
agreement pursuant to Section 15.3, within fifteen (15) days after it is tendered by the
Transmission Provider will be deemed a withdrawal and termination of the Application
and any deposit submitted shall be refunded with interest. Nothing herein limits the right
of an Eligible Customer to file another Application after such withdrawal and
termination.
17.7 Extensions for Commencement of Service: The Transmission Customer can obtain, subject to availability, up to five (5) one
year extensions for the commencement of service. The Transmission Customer may
postpone service by paying a non refundable annual reservation fee equal to one month's
charge for Firm Transmission Service for each year or fraction thereof within 15 days of
notifying the Transmission Provider it intends to extend the commencement of service. If
during any extension for the commencement of service an Eligible Customer submits a
Completed Application for Firm Transmission Service, and such request can be satisfied
only by releasing all or part of the Transmission Customer's Reserved Capacity, the
original Reserved Capacity will be released unless the following condition is satisfied.
Within thirty (30) days, the original Transmission Customer agrees to pay the Firm Point
To Point transmission rate for its Reserved Capacity concurrent with the new Service
Commencement Date. In the event the Transmission Customer elects to release the
Reserved Capacity, the reservation fees or portions thereof previously paid will be
forfeited.
18 Procedures for Arranging Non Firm Point To Point Transmis Procedures for Arranging Non Firm Point To Point Transmission Service
18.1 Application: Eligible Customers seeking Non Firm Point To Point Transmission Service must
submit a Completed Application to the Transmission Provider. Applications should be
submitted by entering the information listed below on the OASIS. In the event the
OASIS is not in operation, a Completed Application may be submitted by (i) transmitting
the required information by telefax, or (ii) providing the information via overnight
delivery to:
American Electric Power Service Corporation Attn: Director, Transmission and Interconnection Services 1 Riverside Plaza Columbus, Ohio 43215-2373 Submission by telefax will provide a time stamped record for establishing the service
priority of the Application.
18.2 Completed Application: A Completed Application shall provide all of the information included in 18
C.F.R. § 2.20 including but not limited to the following:
(i) The identity, address, telephone number and facsimile number of the
entity requesting service;
(ii) A statement that the entity requesting service is, or will be upon
commencement of service, an Eligible Customer under the Tariff;
(iii) The Point(s) of Receipt and the Point(s) of Delivery;
(iv) The maximum amount of capacity requested at each Point of Receipt and
Point of Delivery;
(v) The proposed dates and hours for initiating and terminating transmission
service hereunder;
(vi) The Eligible Customer's NERC registered DUNS number as displayed on
www.tsin.com; and
(vii) The identity and contact number of the Eligible Customer's accounts
payable personnel.
In addition to the information specified above, when required to properly evaluate
system conditions the Transmission Provider also may ask the Transmission Customer to
provide the following:
(viii) The electrical location of the initial source of the power to be transmitted
pursuant to the Transmission Customer's request for service; and
(ix) The electrical location of the ultimate load. The Transmission Provider
will treat this information in (viii) and (ix) as confidential at the request of the
Transmission Customer except to the extent that disclosure of this information is required
by this Tariff, by regulatory or judicial order, for reliability purposes pursuant to Good
Utility Practice, or pursuant to RTG transmission information sharing agreements. The
Transmission Provider shall treat this information consistent with the standards of
conduct contained in Part 37 of the Commission's regulations.
(x) A statement indicating that, if the Eligible Customer submits a Pre-
Confirmed Application, the Eligible Customer will execute a Service Agreement upon
receipt of notification that the Transmission Provider can provide the requested
Transmission Service.
18.3 Reservation of Non Firm Point To Point Transmission Ser Reservation of Non-Firm Point-To-Point Transmission Service: Requests for monthly service for one month or up to twelve consecutive months
shall be submitted no earlier than sixty (60) days before service is to commence; requests
for weekly service shall be submitted no earlier than fourteen (14) days before service is
to commence, requests for daily service shall be submitted no earlier than two (2) days
before service is to commence, and requests for hourly service shall be submitted no
earlier than noon the day before service is to commence. Requests for service received
later than 2:00 p.m. (or at such other time corresponding to the scheduling deadline
followed by an applicable regional transmission entity) prior to the day service is
scheduled to commence will be accommodated if practicable.
18.4 Determination of Available Transfer Capability: Following receipt of a tendered schedule the Transmission Provider will make a
determination on a non discriminatory basis of available transfer capability pursuant to
Section 15.2. Such determination shall be made as soon as reasonably practicable after
receipt, but not later than the following time periods for the following terms of service (i)
thirty (30) minutes for hourly service, (ii) thirty (30) minutes for daily service, (iii) four
(4) hours for weekly service, and (iv) two (2) days for monthly service(or at such other
time corresponding to the scheduling deadline followed by an applicable regional
transmission entity).
19 Additional Study Procedures For Firm Point To Point Trans Additional Study Procedures For Firm Point To Point Transmission Service Requests
19.1 Notice of Need for System Impact Study: After receiving a request for service, the Transmission Provider shall determine
on a non discriminatory basis whether a System Impact Study is needed. A description of
the Transmission Provider's methodology for completing a System Impact Study is
provided in Attachment D. If the Transmission Provider determines that a System Impact
Study is necessary to accommodate the requested service, it shall so inform the Eligible
Customer, as soon as practicable. Once informed, the Eligible Customer shall timely
notify the Transmission Provider if it elects to have the Transmission Provider study
redispatch or conditional curtailment as part of the System Impact Study. If notification is
provided prior to tender of the System Impact Study Agreement, the Eligible Customer
can avoid the costs associated with the study of these options. The Transmission Provider
shall within thirty (30) days of receipt of a Completed Application, tender a System
Impact Study Agreement pursuant to which the Eligible Customer shall agree to
reimburse the Transmission Provider for performing the required System Impact Study.
For a service request to remain a Completed Application, the Eligible Customer shall
execute the System Impact Study Agreement and return it to the Transmission Provider
within fifteen (15) days. If the Eligible Customer elects not to execute the System Impact
Study Agreement, its application shall be deemed withdrawn and its deposit, pursuant to
Section 17.3, shall be returned with interest.
19.2 System Impact Study Agreement and Cost Reimbursement: (i) The System Impact Study Agreement will clearly specify the
Transmission Provider's estimate of the actual cost, and time for completion of the
System Impact Study. The charge shall not exceed the actual cost of the study. In
performing the System Impact Study, the Transmission Provider shall rely, to the extent
reasonably practicable, on existing transmission planning studies. The Eligible Customer
will not be assessed a charge for such existing studies; however, the Eligible Customer
will be responsible for charges associated with any modifications to existing planning
studies that are reasonably necessary to evaluate the impact of the Eligible Customer's
request for service on the Transmission System.
(ii) If in response to multiple Eligible Customers requesting service in relation
to the same competitive solicitation, a single System Impact Study is sufficient for the
Transmission Provider to accommodate the requests for service, the costs of that study
shall be pro rated among the Eligible Customers.
(iii) For System Impact Studies that the Transmission Provider conducts on its
own behalf, the Transmission Provider shall record the cost of the System Impact Studies
pursuant to Section 20.
19.3 System Impact Study Procedures: Upon receipt of an executed System Impact Study Agreement, the Transmission
Provider will use due diligence to complete the required System Impact Study within a
sixty (60) day period. The System Impact Study shall identify (1) any system constraints
and , identified with specificity by transmission element or flowgate, (2) redispatch
options, (when requested by an Eligible Customer) including an estimate of the cost of
redispatch, (3) conditional curtailment options (when requested by an Eligible Customer)
including the number of hours per year and the System Conditions during which
conditional curtailment may occur, and (4) identify any system constraints and redispatch
options, additional Direct Assignment Facilities or Network Upgrades required to provide
the requested service. For customers requesting the study of redispatch options, the
System Impact Study shall (1) identify all resources located within the Transmission
Provider’s Control Area that can significantly contribute toward relieving the system
constraint and (2) provide a measurement of each resource’s impact on the system
constraint. If the Transmission Provider possesses information indicating that any
resource outside its Control Area could relieve the constraint, it shall identify each such
resource in the System Impact Study. In the event that the Transmission Provider is
unable to complete the required System Impact Study within such time period, it shall so
notify the Eligible Customer and provide an estimated completion date along with an
explanation of the reasons why additional time is required to complete the required
studies. A copy of the completed System Impact Study and related work papers shall be
made available to the Eligible Customer as soon as the System Impact Study is complete.
The Transmission Provider will use the same due diligence in completing the System
Impact Study for an Eligible Customer as it uses when completing studies for itself. The
Transmission Provider shall notify the Eligible Customer immediately upon completion
of the System Impact Study if the Transmission System will be adequate to accommodate
all or part of a request for service or that no costs are likely to be incurred for new
transmission facilities or upgrades. In order for a request to remain a Completed
Application, within fifteen (15) days of completion of the System Impact Study the
Eligible Customer must execute a Service Agreement or request the filing of an
unexecuted Service Agreement pursuant to Section 15.3, or the Application shall be
deemed terminated and withdrawn.
19.4 Facilities Study Procedures: If a System Impact Study indicates that additions or upgrades to the Transmission
System are needed to supply the Eligible Customer's service request, the Transmission
Provider, within thirty (30) days of the completion of the System Impact Study, shall
tender to the Eligible Customer a Facilities Study Agreement pursuant to which the
Eligible Customer shall agree to reimburse the Transmission Provider for performing the
required Facilities Study. For a service request to remain a Completed Application, the
Eligible Customer shall execute the Facilities Study Agreement and return it to the
Transmission Provider within fifteen (15) days. If the Eligible Customer elects not to
execute the Facilities Study Agreement, its application shall be deemed withdrawn and its
deposit, pursuant to Section 17.3, shall be returned with interest. Upon receipt of an
executed Facilities Study Agreement, the Transmission Provider will use due diligence to
complete the required Facilities Study within a sixty (60) day period. If the Transmission
Provider is 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. When completed, the 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. The Transmission Customer shall provide
the Transmission Provider with a letter of credit or other reasonable form of security
acceptable to the Transmission Provider equivalent to the costs of new facilities or
upgrades consistent with commercial practices as established by the Uniform
Commercial Code. The Transmission Customer shall have thirty (30) days to execute a
Service Agreement or request the filing of an unexecuted Service Agreement and provide
the required letter of credit or other form of security or the request will no longer be a
Completed Application and shall be deemed terminated and withdrawn.
19.5 Facilities Study Modifications: Any change in design arising from inability to site or construct facilities as
proposed will require development of a revised good faith estimate. New good faith
estimates also will be required in the event of new statutory or regulatory requirements
that are effective before the completion of construction or other circumstances beyond the
control of the Transmission Provider that significantly affect the final cost of new
facilities or upgrades to be charged to the Transmission Customer pursuant to the
provisions of Part II of the Tariff.
19.6 Due Diligence in Completing New Facilities: The Transmission Provider shall use due diligence to add necessary facilities or
upgrade its Transmission System within a reasonable time. The Transmission Provider
will not upgrade its existing or planned Transmission System in order to provide the
requested Firm Point-To-Point Transmission Service if doing so would impair system
reliability or otherwise impair or degrade existing firm service.
19.7 Partial Interim Service: If the Transmission Provider determines that it will not have adequate transfer
capability to satisfy the full amount of a Completed Application for Firm Point To Point
Transmission Service, the Transmission Provider nonetheless shall be obligated to offer
and provide the portion of the requested Firm Point To Point Transmission Service that
can be accommodated without addition of any facilities and through redispatch.
However, the Transmission Provider shall not be obligated to provide the incremental
amount of requested Firm Point To Point Transmission Service that requires the addition
of facilities or upgrades to the Transmission System until such facilities or upgrades have
been placed in service.
19.8 Expedited Procedures for New Facilities: In lieu of the procedures set forth above, the Eligible Customer shall have the
option to expedite the process by requesting the Transmission Provider to tender at one
time, together with the results of required studies, an "Expedited Service Agreement"
pursuant to which the Eligible Customer would agree to compensate the Transmission
Provider for all costs incurred pursuant to the terms of the Tariff. In order to exercise this
option, the Eligible Customer shall request in writing an expedited Service Agreement
covering all of the above specified items within thirty (30) days of receiving the results of
the System Impact Study identifying needed facility additions or upgrades or costs
incurred in providing the requested service. While the Transmission Provider agrees to
provide the Eligible Customer with its best estimate of the new facility costs and other
charges that may be incurred, such estimate shall not be binding and the Eligible
Customer must agree in writing to compensate the Transmission Provider for all costs
incurred pursuant to the provisions of the Tariff. The Eligible Customer shall execute
and return such an Expedited Service Agreement within fifteen (15) days of its receipt or
the Eligible Customer's request for service will cease to be a Completed Application and
will be deemed terminated and withdrawn.
19.9 Penalties for Failure to Meet Study Deadlines:
Sections 19.3 and 19.4 require a Transmission Provider to use due diligence to
meet 60-day study completion deadlines for System Impact Studies and Facilities
Studies.
(i) The Transmission Provider is required to file a notice with the
Commission in the event that more than twenty (20) percent of non-Affiliates’ System
Impact Studies and Facilities Studies completed by the Transmission Provider in any two
consecutive calendar quarters are not completed within the 60-day study completion
deadlines. Such notice must be filed within thirty (30) days of the end of the calendar
quarter triggering the notice requirement.
(ii) For the purposes of calculating the percent of non-Affiliates’ System
Impact Studies and Facilities Studies processed outside of the 60-day study completion
deadlines, the Transmission Provider shall consider all System Impact Studies and
Facilities Studies that it completes for non-Affiliates during the calendar quarter. The
percentage should be calculated by dividing the number of those studies which are
completed on time by the total number of completed studies. The Transmission Provider
may provide an explanation in its notification filing to the Commission if it believes there
are extenuating circumstances that prevented it from meeting the 60-day study
completion deadlines.
(iii) The Transmission Provider is subject to an operational penalty if it
completes ten (10) percent or more of non-Affiliates’ System Impact Studies and
Facilities Studies outside of the 60-day study completion deadlines for each of the two
calendar quarters immediately following the quarter that triggered its notification filing to
the Commission. The operational penalty will be assessed for each calendar quarter for
which an operational penalty applies, starting with the calendar quarter immediately
following the quarter that triggered the Transmission Provider’s notification filing to the
Commission. The operational penalty will continue to be assessed each quarter until the
Transmission Provider completes at least ninety (90) percent of all non-Affiliates’
System Impact Studies and Facilities Studies within the 60-day deadline.
(iv) For penalties assessed in accordance with subsection (iii) above, the
penalty amount for each System Impact Study or Facilities Study shall be equal to $500
for each day the Transmission Provider takes to complete that study beyond the 60-day
deadline.
20 Procedures if The Transmission Provider is Unable to Comp Procedures if The Transmission Provider is Unable to Complete New Transmission Facilities for Firm Point-To-Point Transmission Service
20.1 Delays in Construction of New Facilities: If any event occurs that will materially affect the time for completion of new
facilities, or the ability to complete them, the Transmission Provider shall promptly notify
the Transmission Customer. In such circumstances, the Transmission Provider shall
within thirty (30) days of notifying the Transmission Customer of such delays, convene a
technical meeting with the Transmission Customer to evaluate the alternatives available
to the Transmission Customer. The Transmission Provider also shall make available to
the Transmission Customer studies and work papers related to the delay, including all
information that is in the possession of the Transmission Provider that is reasonably
needed by the Transmission Customer to evaluate any alternatives.
20.2 Alternatives to the Original Facility Additions:
When the review process of Section 20.1 determines that one or more alternatives
exist to the originally planned construction project, the Transmission Provider shall
present such alternatives for consideration by the Transmission Customer. If, upon
review of any alternatives, the Transmission Customer desires to maintain its Completed
Application subject to construction of the alternative facilities, it may request the
Transmission Provider to submit a revised Service Agreement for Firm Point To Point
Transmission Service. If the alternative approach solely involves Non Firm Point To
Point Transmission Service, the Transmission Provider shall promptly tender a Service
Agreement for Non Firm Point To Point Transmission Service providing for the service.
In the event the Transmission Provider concludes that no reasonable alternative exists and
the Transmission Customer disagrees, the Transmission Customer may seek relief under
the dispute resolution procedures pursuant to Section 12 or it may refer the dispute to the
Commission for resolution.
20.3 Refund Obligation for Unfinished Facility Additions: If the Transmission Provider and the Transmission Customer mutually agree that
no other reasonable alternatives exist and the requested service cannot be provided out of
existing capability under the conditions of Part II of the Tariff, the obligation to provide
the requested Firm Point To Point Transmission Service shall terminate and any deposit
made by the Transmission Customer shall be returned with interest pursuant to
Commission regulations 35.19a(a)(2)(iii). However, the Transmission Customer shall be
responsible for all prudently incurred costs by the Transmission Provider through the
time construction was suspended.
21 Provisions Relating to Transmission Construction and Serv Provisions Relating to Transmission Construction and Services on the Systems of Other Utilities
21.1 Responsibility for Third Party System Additions: The Transmission Provider shall not be responsible for making arrangements for
any necessary engineering, permitting, and construction of transmission or distribution
facilities on the system(s) of any other entity or for obtaining any regulatory approval for
such facilities. The Transmission Provider will undertake reasonable efforts to assist the
Transmission Customer in obtaining such arrangements, including without limitation,
providing any information or data required by such other electric system pursuant to
Good Utility Practice.
21.2 Coordination of Third Party System Additions: In circumstances where the need for transmission facilities or upgrades is
identified pursuant to the provisions of Part II of the Tariff, and if such upgrades further
require the addition of transmission facilities on other systems, the Transmission Provider
shall have the right to coordinate construction on its own system with the construction
required by others. The Transmission Provider, after consultation with the Transmission
Customer and representatives of such other systems, may defer construction of its new
transmission facilities, if the new transmission facilities on another system cannot be
completed in a timely manner. The Transmission Provider shall notify the Transmission
Customer in writing of the basis for any decision to defer construction and the specific
problems which must be resolved before it will initiate or resume construction of new
facilities. Within sixty (60) days of receiving written notification by the Transmission
Provider of its intent to defer construction pursuant to this section, the Transmission
Customer may challenge the decision in accordance with the dispute resolution
procedures pursuant to Section 12 or it may refer the dispute to the Commission for
resolution.
22 Changes in Service Specifications
22.1 Modifications On a Non Firm Basis: The Transmission Customer taking Firm Point To Point Transmission Service
may request the Transmission Provider to provide transmission service on a non firm
basis over Receipt and Delivery Points other than those specified in the Service
Agreement ("Secondary Receipt and Delivery Points"), in amounts not to exceed its firm
capacity reservation, without incurring an additional Non Firm Point To Point
Transmission Service charge or executing a new Service Agreement, subject to the
following conditions.
(a) Service provided over Secondary Receipt and Delivery Points will be non
firm only, on an as available basis and will not displace any firm or non firm service
reserved or scheduled by third-parties under the Tariff or by the Transmission Provider
on behalf of its Native Load Customers and the rate applicable to such service shall be
based on the Zone in which the delivery point is located.
(b) The sum of all Firm and Non firm Point To Point Transmission Service
provided to the Transmission Customer at any time pursuant to this section shall not
exceed the Reserved Capacity in the relevant Service Agreement under which such
services are provided.
(c) The Transmission Customer shall retain its right to schedule Firm Point
To Point Transmission Service at the Receipt and Delivery Points specified in the
relevant Service Agreement in the amount of its original capacity reservation.
(d) Service over Secondary Receipt and Delivery Points on a non firm basis
shall not require the filing of an Application for Non Firm Point To Point Transmission
Service under the Tariff. However, all other requirements of Part II of the Tariff (except
as to transmission rates) shall apply to transmission service on a non firm basis over
Secondary Receipt and Delivery Points.
22.2 Modification On a Firm Basis: Any request by a Transmission Customer to modify Receipt and Delivery Points
on a firm basis shall be treated as a new request for service in accordance with Section 17
hereof, except that such Transmission Customer shall not be obligated to pay any
additional deposit if the capacity reservation does not exceed the amount reserved in the
existing Service Agreement. While such new request is pending, the Transmission
Customer shall retain its priority for service at the existing firm Receipt and Delivery
Points specified in its Service Agreement.
23 Sale or Assignment of Transmission Service
23.1 Procedures for Assignment or Transfer of Service: Subject to Commission approval of any necessary filings, a Transmission
Customer may sell, assign, or transfer all or a portion of its rights under its Service
Agreement, but only to another Eligible Customer (the Assignee). The Transmission
Customer that sells, assigns or transfers its rights under its Service Agreement is hereafter
referred to as the Reseller. Compensation to the Reseller shall not exceed the higher of
(i) the original rate paid by the Reseller, (ii) the Transmission Provider’s maximum rate
on file at the time of the assignment, or (iii) the Reseller’s opportunity cost capped at the
Transmission Provider’s cost of expansion; provided that, for service prior to October 1,
2010, compensation to Resellers shall be at rates established by agreement between the
Reseller and the Assignee. The Assignee must execute a service agreement with the
Transmission Provider governing reassignments of transmission service prior to the date
on which the reassigned service commences. The Transmission Provider shall charge the
Reseller, as appropriate, at the rate stated in the Reseller’s Service Agreement with the
Transmission Provider or the associated OASIS schedule and credit the Reseller with the
price reflected in the Assignee’s Service Agreement with the Transmission Provider or
the associated OASIS schedule; provided that, such credit shall be reversed in the event
of non-payment by the Assignee. If the Assignee does not request any change in the
Point(s) of Receipt or the Point(s) of Delivery, or a change in any other term or condition
set forth in the original Service Agreement, the Assignee will receive the same services
as did the Reseller and the priority of service for the Assignee will be the same as that of
the Reseller. The Assignee will be subject to all terms and conditions of this Tariff. If
the Assignee requests a change in service, the reservation priority of service will be
determined by the Transmission Provider pursuant to Section 13.2.
23.2 Limitations on Assignment or Transfer of Service: If the Assignee requests a change in the Point(s) of Receipt or Point(s) of
Delivery, or a change in any other specifications set forth in the original Service
Agreement, the Transmission Provider will consent to such change subject to the
provisions of the Tariff, provided that the change will not impair the operation and
reliability of the Transmission Provider's generation, transmission, or distribution
systems. The Assignee shall compensate the Transmission Provider for performing any
System Impact Study needed to evaluate the capability of the Transmission System to
accommodate the proposed change and any additional costs resulting from such change.
The Reseller shall remain liable for the performance of all obligations under the Service
Agreement, except as specifically agreed to by the Transmission Provider and the
Reseller through an amendment to the Service Agreement.
23.3 Information on Assignment or Transfer of Service: In accordance with Section 4, all sales or assignments of capacity must be
conducted through or otherwise posted on the Transmission Provider’s OASIS on or
before the date the reassigned service commences and are subject to Section 23.1.
Resellers may also use the OASIS to post transmission capacity available for resale.
24 Metering and Power Factor Correction at Receipt and Deliv Metering and Power Factor Correction at Receipt and Delivery Point(s)
24.1 Transmission Customer Obligations: Unless otherwise agreed, the Transmission Customer shall be responsible for
installing and maintaining compatible metering and communications equipment to
accurately account for the capacity and energy being transmitted under Part II of the
Tariff and to communicate the information to the Transmission Provider. Such
equipment shall remain the property of the Transmission Customer. The Transmission
Customer shall inspect its metering equipment for accuracy in registration at least
biennially and at its own expense. The Transmission Customer shall also perform meter
tests at the request of the Transmission Provider within normal business hours. If any
metering equipment test shows the Transmission Customer's metering equipment not to
be accurate within +/- 2%, the Transmission Customer shall replace such equipment with
accurate equipment or restore the existing equipment to accurate registration at the
Transmission Customer's own expense. If a metering test requested by the Transmission
Provider shows the Transmission Customer's equipment to be registering accurately
within +/- 2%, the Transmission Provider shall pay the costs of such test.
24.2 Transmission Provider Access to Metering Data: The Transmission Provider shall have access to metering data, which may
reasonably be required to facilitate measurements and billing under the Service
Agreement.
24.3 Power Factor: Unless otherwise agreed, the Transmission Customer is required to maintain a
power factor within the same range as the Transmission Provider pursuant to Good
Utility Practices. The power factor requirements are specified in the Service Agreement
where applicable.
25 Compensation for Transmission Service Rates for Firm and Non Firm Point To Point Transmission Service are provided in
the Schedules appended to the Tariff: Firm Point-To-Point Transmission Service
(Schedule 7); and Non-Firm Point-To-Point Transmission Service (Schedule 8). The
Transmission Provider shall use Part II of the Tariff to make its Third Party Sales. The
Transmission Provider shall account for such use at the applicable Tariff rates, pursuant
to Section 8.
26 Stranded Cost Recovery The Transmission Provider may seek to recover stranded costs from the
Transmission Customer pursuant to this Tariff in accordance with the terms, conditions
and procedures set forth in FERC Order No. 888. However, the Transmission Provider
must separately file any specific proposed stranded cost charge under Section 205 of the
Federal Power Act.
27 Compensation for New Facilities and Redispatch Costs Whenever a System Impact Study performed by the Transmission Provider in
connection with the provision of Firm Point To Point Transmission Service identifies the
need for new facilities, the Transmission Customer shall be responsible for such costs to
the extent consistent with Commission policy. Whenever a System Impact Study
performed by the Transmission Provider identifies capacity constraints that may be
relieved by redispatching the Transmission Provider's resources to eliminate such
constraints, the Transmission Customer shall be responsible for the redispatch costs to the
extent consistent with Commission policy and Chapter 25.
III NETWORK INTEGRATION TRANSMISSION SERVICE
Preamble The Transmission Provider offers Network Integration Transmission Service in
the AEP West Zone pursuant to the applicable terms and conditions set forth in this
Tariff, the Transmission Customer’s Network Integration Transmission Service
Agreement, and the Transmission Customer’s Network Service Operating Agreement.
Network Integration Transmission Service allows the Network Customer to integrate,
economically dispatch and regulate its current and planned Network Resources to serve
its Network Loads in a manner comparable to that in which the Transmission Provider
utilizes its Transmission System to serve its Native Load Customers. Network
Integration Transmission Service also may be used by the Network Customer to deliver
energy to its Network Load from resources not designated as Network Resources on an as
available basis without additional charge. Transmission service for sales by the
Transmission Customer to loads not designated as Network Loads will be provided in
accordance with the applicable terms and conditions of Part II of the Tariff.
Network Integration Transmission Service used to serve Network Load located in
the SPP, or that otherwise makes use of that portion of the Transmission System located
in the SPP, other than Network Integration Transmission Service that is grandfathered
under Sections 1.14a and 37.4 of the SPP Tariff, shall be taken under the SPP Tariff in
accordance with the applicable terms and conditions of the SPP Tariff.
Charges for Network Integration Transmission Service under this Tariff, if
applicable, are based on whether the Transmission Customer’s Network Load is located
in the AEP East Zone or the AEP West Zone. To accomplish the delivery of energy from
Network Resources to Network Load, the Transmission Customer may also be required
to arrange and pay for service under the transmission tariffs of other transmission
providers, including without limitation the PJM and SPP Tariffs.
Delivery to Network Load in the East Zone
1. Network Integration Transmission Service for loads located in the AEP
East Zone shall take service under the PJM Tariff.
Delivery to Network Load in the AEP West Zone for Transactions that are
Grandfathered Under the SPP Tariff
2. Any Network Integration Transmission Service to Network Load located
in or served from the SPP subject to a service agreement executed before
February 1, 2000, shall continue to be taken exclusively under the rates, terms and
conditions of this Tariff relating to Network Integration Transmission Service.
Network Customers that are party to such grandfathered agreements shall remain
liable to the Transmission Provider for the Network Customer’s Load Ratio Share
of the applicable AEP West Zone annual transmission revenue requirement set
forth in Attachment H to the Tariff.
Delivery to Network Load in the West Zone for Transactions that are Not
Grandfathered Under the SPP Tariff
Into the SPP From the AEP East Zone
3. A Network Customer that takes Network Integration Transmission Service
under the SPP Tariff to serve Network Load located in or served from the AEP
West Zone portion of the SPP from Network Resources located in the AEP East
Zone shall not be liable to the Transmission Provider for Network Integration
Transmission Service or Point-to-Point Transmission Service charges under this
Tariff, but will be subject to charges under other Transmission Provider’s Tariffs,
such as PJM.
Into ERCOT from the AEP East Zone or the SPP
4. A Network Customer that takes Network Integration Transmission Service
to serve its Network Load located in ERCOT from Network Resources scheduled
into the Transmission System in the Eastern Interconnection shall be liable to the
Transmission Provider for charges under Parts III and IV of the Tariff. Such
transactions would be subject to charges under the SPP Tariff, and potentially
under the transmission tariffs of other Transmission Providers, including PJM.
Within the SPP Only
5. A Network Customer that takes Network Integration Transmission Service
under the SPP Tariff to serve Network Load located in the SPP from Network
Resources located outside of the AEP East Zone or ERCOT shall be subject to the
SPP Tariff and not be subject to any charges under this Tariff.
28 Nature of Network Integration Transmission Service
28.1 Scope of Service: Network Integration Transmission Service is a transmission service that allows
Network Customers to efficiently and economically utilize their Network Resources (as
well as other non-designated generation resources) to serve their Network Load located in
any of the Transmission Provider's Control Areas and any additional load that may be
designated pursuant to Section 31.3 of the Tariff. The Network Customer taking
Network Integration Transmission Service must obtain or provide Ancillary Services
pursuant to Section 3.
28.2 Transmission Provider Responsibilities:
The Transmission Provider will plan, construct, operate and maintain its
Transmission System in accordance with Good Utility Practice and its planning
obligations in Attachment R in order to provide the Network Customer with Network
Integration Transmission Service over the Transmission Provider's Transmission System.
The Transmission Provider, on behalf of its Native Load Customers, shall be required to
designate resources and loads in the same manner as any Network Customer under Part
III of this Tariff. This information must be consistent with the information used by the
Transmission Provider to calculate available transfer capability. The Transmission
Provider shall include the Network Customer's Network Load in its Transmission System
planning and shall, consistent with Good Utility Practice and Attachment R, endeavor to
construct and place into service sufficient transfer capability to deliver the Network
Customer's Network Resources to serve its Network Load on a basis comparable to the
Transmission Provider's delivery of its own generating and purchased resources to its
Native Load Customers.
28.3 Network Integration Transmission Service: The Transmission Provider will provide firm transmission service over its
Transmission System to the Network Customer for the delivery of capacity and energy
from its designated Network Resources to service its Network Loads on a basis that is
comparable to the Transmission Provider's use of the Transmission System to reliably
serve its Native Load Customers.
28.4 Secondary Service:
The Network Customer may use the Transmission Provider's Transmission
System to deliver energy to its Network Loads from resources that have not been
designated as Network Resources. Such energy shall be transmitted, on an as-available
basis, at no additional charge. Secondary service shall not require the filing of an
Application for Network Integration Transmission Service under the Tariff. However, all
other requirements of Part III of the Tariff (except for transmission rates) shall apply to
secondary service. Deliveries from resources other than Network Resources will have a
higher priority than any Non-Firm Point-To-Point Transmission Service under Part II of
the Tariff.
28.5 Real Power Losses: Real Power Losses are associated with all transmission service. The
Transmission Provider is not obligated to provide Real Power Losses, but the
Transmission Customer may purchase capacity and energy necessary to compensate for
losses from the Transmission Provider pursuant to Schedule 9, Loss Compensation
Service. The Network Customer is responsible for replacing losses associated with all
transmission service as calculated by the Transmission Provider. The applicable Real
Power Loss factors are as follows:
For transmission to a point of delivery in the AEP East Zone, the loss factor is
3.3%. For transmission to a point of delivery in the AEP West Zone, the loss factor is
2.9%. A Transmission Customer that compensates TCC and TNC for losses under the
ERCOT Protocols shall not be liable for losses under Part III of the Tariff.
28.6 Restrictions on Use of Service:
The Network Customer shall not use Network Integration Transmission Service
for (i) sales of capacity and energy to non-designated loads, or (ii) direct or indirect
provision of transmission service by the Network Customer to third parties. All Network
Customers taking Network Integration Transmission Service shall use Point-To-Point
Transmission Service under Part II of the Tariff for any Third-Party Sale which requires
use of the Transmission Provider's Transmission System. The Transmission Provider
shall specify any appropriate charges and penalties and all related terms and conditions
applicable in the event that a Network Customer uses Network Integration Transmission
Service or secondary service pursuant to Section 28.4 to facilitate a wholesale sale that
does not serve a Network Load.
29 Initiating Service
29.1 Condition Precedent for Receiving Service: Subject to the terms and conditions of Part III of the Tariff, the Transmission
Provider will provide Network Integration Transmission Service to any Eligible
Customer, provided that (i) the Eligible Customer completes an Application for service as
provided under Part III of the Tariff, (ii) the Eligible Customer and the Transmission
Provider complete the technical arrangements set forth in Sections 29.3 and 29.4, (iii) the
Eligible Customer executes a Service Agreement pursuant to Attachment F for service
under Part III of the Tariff or requests in writing that the Transmission Provider file a
proposed unexecuted Service Agreement with the Commission, and (iv) the Eligible
Customer executes a Network Operating Agreement with the Transmission Provider
pursuant to Attachment G, or requests in writing that the Transmission Provider file a
proposed unexecuted Network Operating Agreement.
29.2 Application Procedures: An Eligible Customer requesting service under Part III of the Tariff must submit
an Application, with a deposit approximating the charge for one month of service, to the
Transmission Provider as far as possible in advance of the month in which service is to
commence. Unless subject to the procedures in Section 2, Completed Applications for
Network Integration Transmission Service will be assigned a priority according to the
date and time the Application is received, with the earliest Application receiving the
highest priority. Applications should be submitted by entering the information listed
below on the OASIS. In the event the OASIS is not in operation, a Completed
Application may be submitted by (i) transmitting the required information to the
Transmission Provider by telefax, or (ii) providing the information by via overnight
delivery to:
American Electric Power Service Corporation Attn: Director, Transmission and Interconnection Services 1 Riverside Plaza Columbus, Ohio 43215-2373
Submission by telefax will provide a time-stamped record for establishing the service
priority of the Application. A Completed Application shall provide all of the information
included in 18 C.F.R. § 2.20 including but not limited to the following:
(i) The identity, address, telephone number and facsimile number of the party
requesting service;
(ii) A statement that the party requesting service is, or will be upon
commencement of service, an Eligible Customer under the Tariff;
(iii) A description of the Network Load at each delivery point. This
description should separately identify and provide the Eligible Customer's best estimate
of the total loads to be served at each transmission voltage level, and the loads to be
served from each Transmission Provider substation at the same transmission voltage
level. The description should include a ten (10) year forecast of summer and winter load
and resource requirements beginning with the first year after the service is scheduled to
commence;
(iv) The amount and location of any interruptible loads included in the
Network Load. This shall include the summer and winter capacity requirements for each
interruptible load (had such load not been interruptible), that portion of the load subject to
interruption, the conditions under which an interruption can be implemented and any
limitations on the amount and frequency of interruptions. An Eligible Customer should
identify the amount of interruptible customer load (if any) included in the 10-year load
forecast provided in response to (iii) above;
(v) A description of Network Resources (current and 10-year projection). For
each on-system Network Resource, such description shall include:
* Unit size and amount of capacity from that unit to be designated as
Network Resource
* VAR capability (both leading and lagging) of all generators
* Operating restrictions
- Any periods of restricted operations throughout the year
- Maintenance schedules
- Minimum loading level of unit
- Normal operating level of unit
- Any must-run unit designations required for system reliability or
contract reasons
* Approximate variable generating cost ($/MWH) for redispatch
computations
* Arrangements governing sale and delivery of power to third parties from
generating facilities located in the Transmission Provider Control Area,
where only a portion of unit output is designated as a Network Resource;
For each off-system Network Resource, such description shall include:
* Identification of the Network Resource as an off-system resource
* Amount of power to which the customer has rights
* Identification of the control area from which the power will originate
* Delivery point(s) to the Transmission Provider’s Transmission System;
* Transmission arrangements on the external transmission system(s)
* Operating restrictions, if any
- Any periods of restricted operations throughout the year
- Maintenance schedules
- Minimum loading level of unit
- Normal operating level of unit
- Any must-run unit designations required for system reliability or
contract reasons
* Approximate variable generating cost ($/MWH) for redispatch
computations;
(vi) Description of Eligible Customer's transmission system:
Load flow and stability data, such as real and reactive parts of the load, lines,
transformers, reactive devices and load type, including normal and emergency ratings of
all transmission equipment in a load flow format compatible with that used by the
Transmission Provider
* Operating restrictions needed for reliability
* Operating guides employed by system operators
* Contractual restrictions or committed uses of the Eligible Customer's
transmission system, other than the Eligible Customer's Network Loads
and Resources
* Location of Network Resources described in subsection (v) above
* 10 year projection of system expansions or upgrades
* Transmission System maps that include any proposed expansions or
upgrades
* Thermal ratings of Eligible Customer's Control Area ties with other
Control Areas;
(vii) Service Commencement Date and the term of the requested Network
Integration Transmission Service. The minimum term for Network Integration
Transmission Service is one year.
(viii) A statement signed by an authorized officer from or agent of the Network
Customer attesting that all of the network resources listed pursuant to Section 29.2(v)
satisfy the following conditions: (1) the Network Customer owns the resource, has
committed to purchase generation pursuant to an executed contract, or has committed to
purchase generation where execution of a contract is contingent upon the availability of
transmission service under Part III of the Tariff; and (2) the Network Resources do not
include any resources, or any portion thereof, that are committed for sale to non-
designated third party load or otherwise cannot be called upon to meet the Network
Customer's Network Load on a noninterruptible basis; and
(ix) Any additional information required of the Transmission Customer as
specified in the Transmission Provider’s planning process established in Attachment R.
Unless the Parties agree to a different time frame, the Transmission Provider must
acknowledge the request within ten (10) days of receipt. The acknowledgement must
include a date by which a response, including a Service Agreement, will be sent to the
Eligible Customer. If an Application fails to meet the requirements of this section, the
Transmission Provider shall notify the Eligible Customer requesting service within
fifteen (15) days of receipt and specify the reasons for such failure. Wherever possible,
the Transmission Provider will attempt to remedy deficiencies in the Application through
informal communications with the Eligible Customer. If such efforts are unsuccessful,
the Transmission Provider shall return the Application without prejudice to the Eligible
Customer filing a new or revised Application that fully complies with the requirements of
this section. The Eligible Customer will be assigned a new priority consistent with the
date of the new or revised Application. The Transmission Provider shall treat this
information consistent with the standards of conduct contained in Part 37 of the
Commission's regulations. The Transmission Provider may, on a non-discriminatory
basis, waive the requirement that a deposit accompany an Application for Network
Integration Transmission Service where the Eligible Customer has established its
creditworthiness pursuant to Section 11 of the Tariff and is not in default of its
obligations under this Tariff, as defined in Section 7.3 of the Tariff, at the time of the
Application.
29.3 Technical Arrangements to be Completed Prior to Commence Technical Arrangements to be Completed Prior to Commencement of Service: Network Integration Transmission Service shall not commence until the
Transmission Provider and the Network Customer, or a third party, have completed
installation of all equipment specified under the Network Operating Agreement
consistent with Good Utility Practice and any additional requirements reasonably and
consistently imposed to ensure the reliable operation of the Transmission System. The
Transmission Provider shall exercise reasonable efforts, in coordination with the Network
Customer, to complete such arrangements as soon as practicable taking into consideration
the Service Commencement Date.
29.4 Network Customer Facilities: The provision of Network Integration Transmission Service shall be conditioned
upon the Network Customer's constructing, maintaining and operating the facilities on its
side of each delivery point or interconnection necessary to reliably deliver capacity and
energy from the Transmission Provider's Transmission System to the Network Customer.
The Network Customer shall be solely responsible for constructing or installing all
facilities on the Network Customer's side of each such delivery point or interconnection.
29.5 Filing of Service Agreement: The Transmission Provider will file Service Agreements with the Commission in
compliance with applicable Commission regulations.
30 Network Resources
30.1 Designation of Network Resources: Network Resources shall include all generation owned, purchased or leased by the
Network Customer designated to serve Network Load under the Tariff. Network
Resources may not include resources, or any portion thereof, that are committed for sale
to non-designated third party load or otherwise cannot be called upon to meet the
Network Customer's Network Load on a non-interruptible basis. Any owned or
purchased resources that were serving the Network Customer's loads under firm
agreements entered into on or before the Service Commencement Date shall initially be
designated as Network Resources until the Network Customer terminates the designation
of such resources.
30.2 Designation of New Network Resources: The Network Customer may designate a new Network Resource by providing the
Transmission Provider with as much advance notice as practicable. A designation of a
new Network Resource must be made through the Transmission Provider’s OASIS by a
request for modification of service pursuant to an Application under Section 29. This
request must include a statement that the new network resource satisfies the following
conditions: (1) the Network Customer owns the resource, has committed to purchase
generation pursuant to an executed contract, or has committed to purchase generation
where execution of a contract is contingent upon the availability of transmission service
under Part III of the Tariff; and (2) The Network Resources do not include any resources,
or any portion thereof, that are committed for sale to non-designated third party load or
otherwise cannot be called upon to meet the Network Customer's Network Load on a
noninterruptible basis. The Network Customer’s request will be deemed deficient if it
does not include this statement and the Transmission Provider will follow the procedures
for a deficient application as described in Section 29.2 of the Tariff.
30.3 Termination of Network Resources: The Network Customer may terminate the designation of all or part of a
generating resource as a Network Resource by providing notification to the Transmission
Provider as soon as reasonably practicable, but not later than the firm scheduling
deadline for the period of termination. Any request for termination of Network Resource
status must be submitted on OASIS, and should indicate whether the request is for
indefinite or temporary termination. A request for indefinite termination of Network
Resource status must indicate the date and time that the termination is to be effective, and
the identification and capacity of the resource(s) or portions thereof to be indefinitely
terminated. A request for temporary termination of Network Resource status must include
the following:
(i) Effective date and time of temporary termination;
(ii) Effective date and time of redesignation, following period of temporary
termination;
(iii) Identification and capacity of resource(s) or portions thereof to be
temporarily terminated;
(iv) Resource description and attestation for redesignating the network resource
following the temporary termination, in accordance with Section 30.2; and
(v) Identification of any related transmission service requests to be evaluated
concomitantly with the request for temporary termination, such that the requests for
undesignation and the request for these related transmission service requests must be
approved or denied as a single request. The evaluation of these related transmission
service requests must take into account the termination of the network resources
identified in (iii) above, as well as all competing transmission service requests of higher
priority. As part of a temporary termination, a Network Customer may only redesignate
the same resource that was originally designated, or a portion thereof. Requests to
redesignate a different resource and/or a resource with increased capacity will be deemed
deficient and the Transmission Provider will follow the procedures for a deficient
application as described in Section 29.2 of the Tariff.
30.4 Operation of Network Resources: The Network Customer shall not operate its designated Network Resources
located in the Network Customer's or Transmission Provider's Control Areas such that
the output of those facilities exceeds its designated Network Load, plus Non-Firm Sales
delivered pursuant to this Tariff or the SPP Tariff, plus losses, plus power sales under a
Commission-approved reserve sharing program. This limitation shall not apply to
changes in the operation of a Transmission Customer's Network Resources at the request
of the Transmission Provider to respond to an emergency or other unforeseen condition
which may impair or degrade the reliability of the Transmission System. For all Network
Resources not physically connected with the Transmission Provider’s Transmission
System, the Network Customer may not schedule delivery of energy in excess of the
Network Resource’s capacity, as specified in the Network Customer’s Application
pursuant to Section 29, unless the Network Customer supports such delivery within the
Transmission Provider’s Transmission System by either obtaining Point-to-Point
Transmission Service or utilizing secondary service pursuant to Section 28.4. The
Transmission Provider shall specify the rate treatment and all related terms and
conditions applicable in the event that a Network Customer’s schedule at the delivery
point for a Network Resource not physically interconnected with the Transmission
Provider's Transmission System exceeds the Network Resource’s designated capacity,
excluding energy delivered using secondary service or Point-to-Point Transmission
Service.
30.5 Network Customer Redispatch Obligation: As a condition to receiving Network Integration Transmission Service, the
Network Customer agrees to redispatch its Network Resources as requested by the
Transmission Provider pursuant to Section 33.2. To the extent practical, the redispatch of
resources pursuant to this section shall be on a least cost, non-discriminatory basis
between all Network Customers, and the Transmission Provider.
30.6 Transmission Arrangements for Network Resources Not Phy Transmission Arrangements for Network Resources Not Physically Interconnected With The Transmission Provider: The Network Customer shall be responsible for any arrangements necessary to
deliver capacity and energy from a Network Resource not physically interconnected with
the Transmission Provider's Transmission System. The Transmission Provider will
undertake reasonable efforts to assist the Network Customer in obtaining such
arrangements, including without limitation, providing any information or data required by
such other entity pursuant to Good Utility Practice.
30.7 Limitation on Designation of Network Resources: The Network Customer must demonstrate that it owns or has committed to
purchase generation pursuant to an executed contract in order to designate a generating
resource as a Network Resource. Alternatively, the Network Customer may establish that
execution of a contract is contingent upon the availability of transmission service under
Part III of the Tariff.
30.8 Use of Interface Capacity by the Network Customer: There is no limitation upon a Network Customer's use of the Transmission
Provider's Transmission System at any particular interface to integrate the Network
Customer's Network Resources (or substitute economy purchases) with its Network
Loads. However, a Network Customer's use of the Transmission Provider's total
interface capacity with other transmission systems may not exceed the Network
Customer's Load. A Transmission Customer shall coordinate its use of the HVDC
Facilities with the ERCOT IO, the SPP security coordinator, and CFE as applicable. The
Transmission Customer shall be liable for any administrative or other charge imposed by
CFE, the ERCOT IO or the SPP security coordinator.
30.9 Network Customer Owned Transmission Facilities: The Network Customer that owns existing transmission facilities that are
integrated with the Transmission Provider's Transmission System may be eligible to
receive consideration either through a billing credit or some other mechanism. In order
to receive such consideration the Network Customer must demonstrate that its
transmission facilities are integrated into the plans or operations of the Transmission
Provider to serve its power and transmission customers. For facilities added by the
Network Customer subsequent to February 16, 2007, the Network Customer shall receive
credit for transmission facilities added if such facilities integrated into the operations of
the Transmission Provider’s facilities; provided however, the Network Customer’s
transmission facilities shall be presumed to be integrated if such transmission facilities, if
owned by the Transmission Provider, would be eligible for inclusion in the Transmission
Provider’s annual transmission revenue requirement as specified in Attachment H.
Calculation of any credit under this subsection shall be addressed in either the Network
Customer's Service Agreement or any other agreement between the Parties.
31 Designation of Network Load
31.1 Network Load: The Network Customer must designate the individual Network Loads on whose
behalf the Transmission Provider will provide Network Integration Transmission Service.
The Network Loads shall be specified in the Service Agreement.
31.2 New Network Loads Connected With the Transmission Provi New Network Loads Connected With the Transmission Provider: The Network Customer shall provide the Transmission Provider with as much
advance notice as reasonably practicable of the designation of new Network Load that
will be added to its Transmission System. A designation of new Network Load must be
made through a modification of service pursuant to a new Application. The Transmission
Provider will use due diligence to install any transmission facilities required to
interconnect a new Network Load designated by the Network Customer. The costs of
new facilities required to interconnect a new Network Load shall be determined in
accordance with the procedures provided in Section 32.4 and shall be charged to the
Network Customer in accordance with Commission policies.
31.3 Network Load Not Physically Interconnected with the Tra Network Load Not Physically Interconnected with the Transmission Provider: This section applies to both initial designation pursuant to Section 31.1 and the
subsequent addition of new Network Load not physically interconnected with the
Transmission Provider. To the extent that the Network Customer desires to obtain
transmission service for a load outside the Transmission Provider's Transmission System,
the Network Customer shall have the option of (1) electing to include the entire load as
Network Load for all purposes under Part III of the Tariff and designating Network
Resources in connection with such additional Network Load, or (2) excluding that entire
load from its Network Load and purchasing Point-To-Point Transmission Service under
Part II of the Tariff. To the extent that the Network Customer gives notice of its intent to
add a new Network Load as part of its Network Load pursuant to this section the request
must be made through a modification of service pursuant to a new Application.
31.4 New Interconnection Points: To the extent the Network Customer desires to add a new Delivery Point or
interconnection point between the Transmission Provider's Transmission System and a
Network Load, the Network Customer shall provide the Transmission Provider with as
much advance notice as reasonably practicable.
31.5 Changes in Service Requests: Under no circumstances shall the Network Customer's decision to cancel or delay
a requested change in Network Integration Transmission Service (e.g. the addition of a
new Network Resource or designation of a new Network Load) in any way relieve the
Network Customer of its obligation to pay the costs of transmission facilities constructed
by the Transmission Provider and charged to the Network Customer as reflected in the
Service Agreement. However, the Transmission Provider must treat any requested
change in Network Integration Transmission Service in a non-discriminatory manner.
31.6 Annual Load and Resource Information Updates: The Network Customer shall provide the Transmission Provider with annual
updates of Network Load and Network Resource forecasts consistent with those included
in its Application for Network Integration Transmission Service under Part III of the
Tariff including but not limited to, any information provided under section 29.2 (ix)
pursuant to the Transmission Provider’s planning process in Attachment R. The Network
Customer also shall provide the Transmission Provider with timely written notice of
material changes in any other information provided in its Application relating to the
Network Customer's Network Load, Network Resources, its transmission system or other
aspects of its facilities or operations affecting the Transmission Provider's ability to
provide reliable service.
32 Additional Study Procedures For Network Integration Trans Additional Study Procedures For Network Integration Transmission Service Requests
32.1 Notice of Need for System Impact Study:
After receiving a request for service, the Transmission Provider shall determine
on a non-discriminatory basis whether a System Impact Study is needed. A description
of the Transmission Provider's methodology for completing a System Impact Study is
provided in Attachment D. If the Transmission Provider determines that a System Impact
Study is necessary to accommodate the requested service, it shall so inform the Eligible
Customer, as soon as practicable. In such cases, the Transmission Provider shall within
thirty (30) days of receipt of a Completed Application, tender a System Impact Study
Agreement pursuant to which the Eligible Customer shall agree to reimburse the
Transmission Provider for performing the required System Impact Study. For a service
request to remain a Completed Application, the Eligible Customer shall execute the
System Impact Study Agreement and return it to the Transmission Provider within fifteen
(15) days. If the Eligible Customer elects not to execute the System Impact Study
Agreement, its Application shall be deemed withdrawn and its deposit shall be returned
with interest.
32.2 System Impact Study Agreement and Cost Reimbursement: (i) The System Impact Study Agreement will clearly specify the
Transmission Provider's estimate of the actual cost, and time for completion of the
System Impact Study. The charge shall not exceed the actual cost of the study. In
performing the System Impact Study, the Transmission Provider shall rely, to the extent
reasonably practicable, on existing transmission planning studies. The Eligible Customer
will not be assessed a charge for such existing studies; however, the Eligible Customer
will be responsible for charges associated with any modifications to existing planning
studies that are reasonably necessary to evaluate the impact of the Eligible Customer's
request for service on the Transmission System.
(ii) If in response to multiple Eligible Customers requesting service in relation
to the same competitive solicitation, a single System Impact Study is sufficient for the
Transmission Provider to accommodate the service requests, the costs of that study
shall be pro-rated among the Eligible Customers.
(iii) For System Impact Studies that the Transmission Provider conducts on its
own behalf, the Transmission Provider shall record the cost of the System Impact Studies
pursuant to Section 8.
32.3 System Impact Study Procedures: Upon receipt of an executed System Impact Study Agreement, the Transmission
Provider will use due diligence to complete the required System Impact Study within a
sixty (60) day period. The System Impact Study shall identify (1) any system constraints,
identified with specificity by transmission element or flowgate, (2) redispatch options
(when requested by an Eligible Customer) including, to the extent possible, an estimate
of the cost of redispatch, (3) available options for installation of automatic devices to
curtail service (when requested by an Eligible Customer), and (4) additional Direct
Assignment Facilities or Network Upgrades required to provide the requested service.
For customers requesting the study of redispatch options, the System Impact Study shall
(1) identify all resources located within the Transmission provider’s Control Area that
can significantly contribute toward relieving the system constraint and (2) provide a
measurement of each resource’s impact on the system constraint. If the Transmission
Provider possesses information indicating that any resource outside its Control Area
could relieve the constraint, it shall identify each such resource in the System Impact
Study. In the event that the Transmission Provider is unable to complete the required
System Impact Study within such time period, it shall so notify the Eligible Customer and
provide an estimated completion date along with an explanation of the reasons why
additional time is required to complete the required studies. A copy of the completed
System Impact Study and related work papers shall be made available to the Eligible
Customer as soon as the System Impact Study is complete. The Transmission Provider
will use the same due diligence in completing the System Impact Study for an Eligible
Customer as it uses when completing studies for itself. The Transmission Provider shall
notify the Eligible Customer immediately upon completion of the System Impact Study if
the Transmission System will be adequate to accommodate all or part of a request for
service or that no costs are likely to be incurred for new transmission facilities or
upgrades. In order for a request to remain a Completed Application, within fifteen (15)
days of completion of the System Impact Study the Eligible Customer must execute a
Service Agreement or request the filing of an unexecuted Service Agreement, or the
Application shall be deemed terminated and withdrawn.
32.4 Facilities Study Procedures: If a System Impact Study indicates that additions or upgrades to the Transmission
System are needed to supply the Eligible Customer's service request, the Transmission
Provider, within thirty (30) days of the completion of the System Impact Study, shall
tender to the Eligible Customer a Facilities Study Agreement pursuant to which the
Eligible Customer shall agree to reimburse the Transmission Provider for performing the
required Facilities Study. For a service request to remain a Completed Application, the
Eligible Customer shall execute the Facilities Study Agreement and return it to the
Transmission Provider within fifteen (15) days. If the Eligible Customer elects not to
execute the Facilities Study Agreement, its Application shall be deemed withdrawn and
its deposit shall be returned with interest. Upon receipt of an executed Facilities Study
Agreement, the Transmission Provider will use due diligence to complete the required
Facilities Study within a sixty (60) day period. If the Transmission Provider is 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. When completed, the Facilities Study will include a good faith
estimate of (i) the cost of Direct Assignment Facilities to be charged to the Eligible
Customer, (ii) the Eligible Customer's appropriate share of the cost of any required
Network Upgrades, and (iii) the time required to complete such construction and initiate
the requested service. The Eligible Customer shall provide the Transmission Provider
with a letter of credit or other reasonable form of security acceptable to the Transmission
Provider equivalent to the costs of new facilities or upgrades consistent with commercial
practices as established by the Uniform Commercial Code. The Eligible Customer shall
have thirty (30) days to execute a Service Agreement or request the filing of an
unexecuted Service Agreement and provide the required letter of credit or other form of
security or the request no longer will be a Completed Application and shall be deemed
terminated and withdrawn.
32.5 Penalties for Failure to Meet Study Deadlines:
Section 19.9 defines penalties that apply for failure to meet the 60-day study
completion due diligence deadlines for System Impact Studies and Facilities Studies
under Part II of the Tariff. These same requirements and penalties apply to service under
Part III of the Tariff.
33 Load Shedding and Curtailments
33.1 Procedures: Prior to the Service Commencement Date, the Transmission Provider and the
Network Customer shall establish Load Shedding and Curtailment procedures pursuant to
the Network Operating Agreement with the objective of responding to contingencies on
the Transmission System and on systems directly and indirectly interconnected with
Transmission Provider’s Transmission System. The Parties will implement such
programs during any period when the Transmission Provider determines that a system
contingency exists and such procedures are necessary to alleviate such contingency. The
Transmission Provider will notify all affected Network Customers in a timely manner of
any scheduled Curtailment.
33.2 Transmission Constraints: During any period when the Transmission Provider determines that a transmission
constraint exists on the Transmission System, and such constraint may impair the
reliability of the Transmission Provider's system, the Transmission Provider will take
whatever actions, consistent with Good Utility Practice, that are reasonably necessary to
maintain the reliability of the Transmission Provider's system. To the extent the
Transmission Provider determines that the reliability of the Transmission System can be
maintained by redispatching resources, the Transmission Provider will initiate procedures
pursuant to the Network Operating Agreement to redispatch all Network Resources and
the Transmission Provider's own resources on a least-cost basis without regard to the
ownership of such resources. Any redispatch under this section may not unduly
discriminate between the Transmission Provider's use of the Transmission System on
behalf of its Native Load Customers and any Network Customer's use of the
Transmission System to serve its designated Network Load.
33.3 Cost Responsibility for Relieving Transmission Constrai Cost Responsibility for Relieving Transmission Constraints: Except to the extent otherwise provided in Chapter 25 of the PUCT’s Substantive
Rules whenever the Transmission Provider implements least-cost redispatch procedures
in response to a transmission constraint, the Transmission Provider and Network
Customers will each bear a proportionate share of the total redispatch cost based on their
respective Load Ratio Shares.
33.4 Curtailments of Scheduled Deliveries: If a transmission constraint on the Transmission Provider's Transmission System
cannot be relieved through the implementation of least-cost redispatch procedures and the
Transmission Provider determines that it is necessary to Curtail scheduled deliveries, the
Parties shall Curtail such schedules in accordance with the Network Operating
Agreement or pursuant to the Transmission Loading Relief procedures specified in
Attachment O.
33.5 Allocation of Curtailments:
The Transmission Provider shall, on a non-discriminatory basis, Curtail the
transaction(s) that effectively relieve the constraint. However, to the extent practicable
and consistent with Good Utility Practice, including actions taken to respond to directives
given by the applicable NERC security coordinator, any Curtailment will be shared by
the Transmission Provider and Network Customer in proportion to their respective Load
Ratio Shares. The Transmission Provider shall not direct the Network Customer to
Curtail schedules to an extent greater than the Transmission Provider would Curtail the
Transmission Provider's schedules under similar circumstances.
33.6 Load Shedding: To the extent that a system contingency exists on the Transmission Provider's
Transmission System and the Transmission Provider determines that it is necessary for
the Transmission Provider and the Network Customer to shed load, the Parties shall shed
load in accordance with previously established procedures under the Network Operating
Agreement.
33.7 System Reliability: Notwithstanding any other provisions of this Tariff, the Transmission Provider
reserves the right, consistent with Good Utility Practice and on a not unduly
discriminatory basis, to Curtail Network Integration Transmission Service without
liability on the Transmission Provider's part for the purpose of making necessary
adjustments to, changes in, or repairs on its lines, substations and facilities, and in cases
where the continuance of Network Integration Transmission Service would endanger
persons or property. In the event of any adverse condition(s) or disturbance(s) on the
Transmission Provider's Transmission System or on any other system(s) directly or
indirectly interconnected with the Transmission Provider's Transmission System, the
Transmission Provider, consistent with Good Utility Practice, also may Curtail Network
Integration Transmission Service in order to (i) limit the extent or damage of the adverse
condition(s) or disturbance(s), (ii) prevent damage to generating or transmission facilities,
(iii) expedite restoration of service, or (iv) as otherwise directed by the applicable NERC
security coordinator. The Transmission Provider will give the Network Customer as
much advance notice as is practicable in the event of such Curtailment. Any Curtailment
of Network Integration Transmission Service will be not unduly discriminatory relative
to the Transmission Provider's use of the Transmission System on behalf of its Native
Load Customers. In the event the Network Customer fails to respond to established Load
Shedding and Curtailment procedures, the Network Customer shall pay, in addition to
any other charges for service, a charge equal to two times the amount of transmission
service the Network Customer fails to curtail times the monthly charge for Network
Integration Transmission Service.
34 Rates and Charges The Network Customer shall pay the Transmission Provider for any Direct
Assignment Facilities, Ancillary Services, and applicable study costs, consistent with
Commission policy, along with the following:
34.1 Monthly Demand Charge: The Network Customer shall pay a monthly Demand Charge, which shall be
determined in accordance with Attachment H. If the Network Customer takes service
under both Part III and Part IV, the Network Customer shall pay its Load Ratio Share as
determined by the preceding sentence and pay to TCC and TNC a monthly demand
charge for service (determined before netting) pursuant to Part IV and Attachment K, of
this Tariff.
34.2 Determination of Network Customer's Monthly Network Load The Network Customer's monthly Network Load is its hourly load (including its
designated Network Load not physically interconnected with the Transmission Provider
under Section 31.3) coincident with the Transmission Provider's Monthly Transmission
System Peak in the AEP West Zone in which such Network Load is located or from
which energy to be transmitted to the Control Area in which Network Load not
physically interconnected to the Transmission System is delivered.
34.3 Determination of Transmission Provider's Monthly Transm Determination of Transmission Provider's Monthly Transmission System Load: The Transmission Provider's monthly Transmission System load, determined
separately for the East and the West Zones, is the Transmission Provider's Monthly
Transmission System Peak of the West Zone minus the coincident peak usage of all Firm
Point-To-Point Transmission Service customers pursuant to Part II of this Tariff plus the
Reserved Capacity of all Firm Point-To-Point Transmission Service customers pursuant
to Part II of this Tariff.
34.4 Redispatch Charge: Except to the extent otherwise provided in Chapter 25 or the ERCOT Protocols,
the Network Customer shall pay a Load Ratio Share of any redispatch costs allocated
between the Network Customer and the Transmission Provider pursuant to Section 33.
To the extent that the Transmission Provider incurs an obligation to the Network
Customer for redispatch costs in accordance with Section 33, such amounts shall be
credited against the Network Customer's bill for the applicable month.
34.5 Stranded Cost Recovery: The Transmission Provider may seek to recover stranded costs from the Network
Customer pursuant to this Tariff in accordance with the terms, conditions and procedures
set forth in FERC Order No. 888. However, the Transmission Provider must separately
file any proposal to recover stranded costs under Section 205 of the Federal Power Act.
35 Operating Arrangements
35.1 Operation under The Network Operating Agreement: The Network Customer shall plan, construct, operate and maintain its facilities in
accordance with Good Utility Practice and in conformance with the Network Operating
Agreement.
35.2 Network Operating Agreement: The terms and conditions under which the Network Customer shall operate its
facilities and the technical and operational matters associated with the implementation of
Part III of the Tariff shall be specified in the Network Operating Agreement. The
Network Operating Agreement shall provide for the Parties to (i) operate and maintain
equipment necessary for integrating the Network Customer within the Transmission
Provider's Transmission System (including, but not limited to, remote terminal units,
metering, communications equipment and relaying equipment), (ii) transfer data between
the Transmission Provider and the Network Customer (including, but not limited to, heat
rates and operational characteristics of Network Resources, generation schedules for units
outside the Transmission Provider's Transmission System, interchange schedules (which
shall be submitted electronically in a form specified by the Transmission Provider), unit
outputs for redispatch required under Section 33, voltage schedules, loss factors and other
real time data), (iii) use software programs required for data links and constraint
dispatching, (iv) exchange data on forecasted loads and resources necessary for long-term
planning; and (v) address any other technical and operational considerations required for
implementation of Part III of the Tariff, including scheduling protocols.
The Network Operating Agreement will recognize that the Network Customer
shall either (i) operate as a Control Area under applicable guidelines of the Electric
Reliability Organization (ERO) as defined in 18 C.F.R. § 39.1 , (ii) satisfy its Control
Area requirements, including all necessary Ancillary Services, by contracting with the
Transmission Provider, or (iii) satisfy its Control Area requirements, including all
necessary Ancillary Services, by contracting with another entity, consistent with Good
Utility Practice, which satisfies the applicable reliability guidelines of the ERO. The
Transmission Provider shall not unreasonably refuse to accept contractual arrangements
with another entity for Ancillary Services. The Network Operating Agreement is
included in Attachment G.
35.3 Network Operating Committee: A Network Operating Committee (Committee) shall be established to coordinate
operating criteria for the Parties' respective responsibilities under the Network Operating
Agreement. Each Network Customer shall be entitled to have at least one representative
on the Committee. The Committee shall meet from time to time as need requires, but no
less than once each calendar year.
IV ERCOT REGIONAL TRANSMISSION SERVICE
Preamble TCC and TNC will participate in the provision of ERCOT Regional Transmission
Service in accordance with ERCOT Protocols and the terms and conditions set forth in
this Part IV and a Transmission Customer's Service Agreement. Chapter 25 sets forth the
principles by which the responsibility for the costs of owning, operating, maintaining and
expanding the ERCOT Transmission Network will be distributed among all electric
utility entities operating in ERCOT. In the event of any conflict between this Tariff and
Chapter 25 or ERCOT Protocols, or any future modification of the PUCT’s Substantive
Rules or ERCOT Protocols, the provisions of this Tariff will control.
36 ERCOT Regional Transmission Service
36.1 Purpose: This Part IV sets forth the terms and conditions that shall govern the participation
by TCC and TNC in assuring non-discriminatory access to use of the ERCOT
Transmission Network required to serve loads in ERCOT and to deliver electric power
from ERCOT. Transmission service provided pursuant to this Part IV together with like
service provided by other Transmission Providers in accordance with Chapter 25 allows
an Eligible Customer operating in ERCOT to receive energy from its resources to serve
loads within ERCOT and to deliver electric power from ERCOT.
36.2 Nature of Transmission Service Scope of Service.
The transmission service offered under this Part IV allows ERCOT Regional
Transmission Service Customers to use the ERCOT Transmission Network for the
delivery of the output of electric power resources to serve loads within ERCOT and to
export electric power from within ERCOT to the boundaries of ERCOT. Under this Part
IV, an ERCOT Regional Transmission Service Customer shall be any Eligible Customer.
The ERCOT Regional Transmission Service Customer must make arrangements for
service with all other ERCOT Transmission Providers in accordance with Chapter 25.
Under this Part IV, an ERCOT Regional Transmission Service Customer shall have the
right, as contemplated by Chapter 25, to use the ERCOT Transmission Network on a
basis similar to the use made by TCC and TNC of the Transmission System. ERCOT
Regional Transmission Service Customers taking transmission service under this Part IV
must arrange Ancillary Services pursuant to the ERCOT Protocols. AEP will provide
QSE and ancillary services only to those ERCOT Regional Transmission Service
Customers with whom AEP has an interim QSE Agreement. These customers may
obtain comparable ancillary services from the ERCOT IO in its capacity as supplier of
last resort.
37 Availability of Transmission Service
37.1 General Conditions: In accordance with the provisions of this Tariff, TCC and TNC shall make
ERCOT Regional Transmission Service available to any Eligible Customer on a non-
discriminatory basis.
37.2 Transmission Service Requirements: As a condition to obtaining Transmission Service under this Part IV, an Eligible
Customer that owns electric facilities in ERCOT shall execute Interconnection
Agreements with TCC and TNC and other ERCOT Transmission Providers to which
such customer is physically connected.
37.3 Transmission Provider Responsibilities: TCC and TNC shall plan, construct, operate and maintain the TCC and TNC
Transmission Systems in accordance with Good Utility Practice in order to provide
ERCOT Regional Transmission Service Customers with ERCOT Regional Transmission
Service over the TCC and TNC Transmission Systems in accordance with this Tariff.
TCC and TNC shall, consistent with Good Utility Practice, endeavor to construct and
place into service transmission capacity to ensure adequacy and reliability of the
transmission network to deliver power from the ERCOT Regional Transmission Service
Customer's resources to serve the ERCOT Regional Transmission Service Customer's
load in ERCOT and to deliver the ERCOT Regional Customer’s power from ERCOT.
TCC and TNC shall plan, construct, operate, and maintain facilities that are needed to
relieve transmission constraints, as recommended by the ERCOT IO and approved by the
PUCT, in order to provide service under this Part IV.
37.4 Construction of New Facilities: If additional transmission facilities or interconnections between electric utilities
are needed to provide transmission service pursuant to a request for such service, the
Transmission Provider, to the extent the constraint exists on the TCC and TNC
Transmission Systems, shall construct or acquire the facilities necessary to permit the
transmission service to be provided, unless the ERCOT IO identifies an alternative
means of providing the transmission service that is less costly, operationally sound, and
relieves the transmission constraint at least as efficiently as would the construction of
additional transmission facilities.
(1) When an Eligible Customer requests ERCOT Regional Transmission
Service for a new generating source that is planned to be interconnected with the TCC
and TNC Transmission Systems, the Eligible Customer shall be responsible for the cost
of installing step-up transformers to transform the output of the generator to a
transmission voltage level and a protective device at the point of interconnection capable
of electrically isolating the generating source owned by the transmission service
customer. The Transmission Provider shall be responsible for the cost of installing any
other interconnection facilities that are designed to operate at a transmission voltage level
and any other transmission system upgrades on its transmission system that may be
necessary to accommodate the requested transmission service.
(a) The Transmission Provider may require the Eligible Customer to pay a
reasonable deposit, or provide another means of security, to cover the costs of planning,
licensing, and constructing any new transmission facilities that will be required in order
to provide the requested service.
(b) If the new generating source is completed and the ERCOT Regional
Transmission Service Customer begins to take the requested transmission service, the
Transmission Provider shall return the deposit or security to the ERCOT Regional
Transmission Service Customer. If the new generating source is not completed and new
transmission facilities are not required, the Transmission Provider may retain as much of
the deposit or security as is required to cover the costs it incurred in planning, licensing,
and constructing the planned new transmission facilities. Any repayment of a cash
deposit shall include interest calculated in the manner described in 18 C.F.R. § 35.19(a).
(2) Curtailment of service. In an emergency situation, as determined by the
ERCOT IO and at its direction, the Transmission Provider may interrupt transmission
service on a non-discriminatory basis, if necessary, to preserve the stability of the
transmission network and service to customers. Such curtailments shall be carried out in
accordance with Part IV of this Tariff, and the ERCOT Protocols.
38 Initiating Service Each Eligible Customer that requests the use of the ERCOT Transmission
Network to serve its customers in ERCOT from its resources, or to make sales of energy
to a third party in ERCOT from its resources or to export electric power from ERCOT,
may apply for transmission service pursuant to this Part IV and Chapter 25. The Eligible
Customer and TCC and TNC shall provide the information that is required under this Part
IV to the ERCOT IO, with a copy to TCC and TNC.
38.1 Conditions Precedent for Receiving Service: Subject to the terms and conditions of Part IV of this Tariff and in accordance
with Chapter 25 and the ERCOT Protocols, TCC and TNC will provide transmission
service to any Eligible Customer that requests service, provided that:
(a) the Eligible Customer has completed an Application for service as
provided under this Section 38;
(b) the Eligible Customer and TCC and TNC have completed the technical
arrangements contemplated by this Section 38;
(c) if the Eligible Customer operates electrical facilities that are connected to
the facilities of TCC or TNC, the Eligible Customer has executed all Interconnection
Agreements required for service under this Tariff or, if necessary, requested in writing
pursuant to Section 38.10 of this Tariff that a Transmission Provider file a proposed
unexecuted Interconnection Agreement with the regulatory agency having jurisdiction;
(d) the Eligible Customer has either executed a Service Agreement or
requested in writing pursuant to Section 38.10 of this Tariff that TCC and TNC file an
unexecuted Service Agreement with the Commission.
38.2 Application Procedures for ERCOT Regional Transmission Application Procedures for ERCOT Regional Transmission Service: (a) An Eligible Customer requesting ERCOT Regional Transmission Service
under Part IV of this Tariff must submit an Application for service. A Completed
Application shall provide the information required in subsection (b) below. The Eligible
Customer shall provide the information that is required under subsection (b) below to the
ERCOT IO, with a copy to TCC and TNC.
(b) The Eligible Customer must provide all information deemed necessary by
the ERCOT IO to evaluate the request for transmission service.
(c) Chapter 25 requires the ERCOT IO to acknowledge a request for service
within ten days of receipt. When the request is complete, the acknowledgment will
include a date by which a response will be sent to the Eligible Customer and a statement
of any fees associated with responding to the request (e.g., fees for system studies).
(d) If an Application fails to provide the ERCOT IO with all information
deemed necessary, Chapter 25 requires the ERCOT IO to notify the Eligible Customer
requesting service within 15 business days of receipt thereof and specify the reasons for
such failure. Chapter 25 requires the ERCOT IO, wherever possible, to attempt to
remedy deficiencies in an Application through informal communications with an Eligible
Customer.
(e) If a System Impact Study is required, upon approval of the requesting
Transmission Customer, Chapter 25 requires the ERCOT IO to perform or direct the
Transmission Provider to prepare such a study. If the ERCOT IO concludes that the TCC
and TNC Transmission System is adequate to accommodate the request for service, either
in whole or in part, or that no costs are likely to be incurred for new transmission
facilities or upgrades, the Transmission Provider will tender a Service Agreement for
ERCOT Regional Transmission Service, within 15 business days of completion of the
System Impact Study.
(f) If the ERCOT IO determines as a result of a System Impact Study that
additions or upgrades to the TCC and TNC Transmission Systems are needed to supply
the Eligible Customer's forecasted requirements for ERCOT Regional Transmission
Service, the Transmission Provider will, upon approval of the requesting Eligible
Customer, initiate a Facilities Study. When completed, a Facilities Study will include an
estimate of the cost of any required facilities or upgrades, and the time required to
complete such construction and initiate the requested service.
(g) Chapter 25 requires that when the Eligible Customer applies for
transmission service for a new resource under this section, the ERCOT IO shall notify
affected Transmission Providers of the application and request comments concerning the
scope of any System Impact Study. Chapter 25 requires the ERCOT IO to complete the
System Impact Study and provide the results to the Eligible Customer within 90 days
after the receipt of an executed study agreement and receipt from the Eligible Customer
of all the data necessary to complete the study. In the event the ERCOT IO is unable to
complete the study within the 90 day period, it will provide the Eligible Customer a
written explanation of when the study will be completed and the reason for the delay.
The Eligible Customer shall be responsible for the cost of the System Impact
Study and shall be provided with the results thereof, including relevant work papers.
38.3 Facilities Study: (a) Based on the results of the System Impact Study, the Transmission
Provider shall perform, or cause to be performed, pursuant to an executed Facilities Study
agreement with the Eligible Customer, a Facilities Study addressing the detailed
engineering, design and cost of facilities required to provide the requested ERCOT
Regional Transmission Service.
(b) The Transmission Provider will complete the Facilities Study as soon as
reasonably practicable using information developed in the System Impact Study. Upon
completion of the Facilities Study, the Transmission Provider shall notify the Eligible
Customer whether the Transmission Provider considers that a contribution in aid of
construction is appropriate and the amount of the contribution that the Eligible Customer
should make. The Transmission Provider shall base its request on the information in the
System Impact Study and the Facilities Study and the provisions in this Part IV.
(c) The Eligible Customer shall be responsible for the reasonable cost of the
Facilities Study pursuant to the terms of the Facilities Study agreement and shall be
provided with the results thereof, including relevant workpapers.
(d) The Transmission Provider shall be responsible for the costs of any
Facilities Study undertaken to determine the engineering, design and cost of facilities
associated with the addition of new resources used to serve load of TCC or TNC. Such
costs will be booked separately by TCC and TNC, as the case may be.
(e) When completed, the Facilities Study will include a good faith estimate of
(i) the cost of Direct Assignment Facilities to be charged to the Eligible Customer, and
(ii) the Eligible Customer’s appropriate share of the cost of any required facilities for
which the Eligible Customer is responsible under Chapter 25, and (iii) the time required
to complete such construction and initiate the requested service. The Eligible Customer
shall provide the Transmission Provider with a letter of credit or other reasonable form of
security acceptable to the Transmission Provider equivalent to the costs of new facilities
or upgrades consistent with commercial practices as established by the Uniform
Commercial Code. The Eligible Customer shall have thirty (30) days to execute a
Service Agreement or request the filing of an unexecuted Service Agreement and provide
the required letter of credit or other form of security or the request no longer will be a
Completed Application and shall be deemed terminated and withdrawn.
38.4 Technical Arrangements to be Completed Prior to Commenc Technical Arrangements to be Completed Prior to Commencement of Service: Service under this Tariff shall not commence until the installation of all
equipment specified in the Interconnection Agreement has been completed in a manner
consistent with guidelines adopted by the national reliability organization and the
ERCOT IO, except that the Transmission Provider shall provide the requested ERCOT
Regional Transmission Service to the extent that such service does not impair the
reliability of other ERCOT Regional Transmission Service. The Transmission Provider
shall exercise reasonable efforts, in coordination with the ERCOT Regional Transmission
Service Customer, to complete such arrangements as soon as practical prior to the service
commencement date.
38.5 ERCOT Regional Transmission Service Customer Facilities The provision of ERCOT Regional Transmission Service shall be conditioned
upon the ERCOT Regional Transmission Service Customer's constructing, maintaining
and operating the facilities on its side of each point of interconnection to the ERCOT
Transmission Network that are necessary reliably to interconnect and deliver electric
power from a resource to the ERCOT Transmission Network and from the ERCOT
Transmission Network to the ERCOT Regional Transmission Service Customer's loads.
38.6 Transmission Arrangements for Loads or Resources Locate Transmission Arrangements for Loads or Resources Located Outside of the ERCOT Region: It shall be the ERCOT Regional Transmission Service Customer’s responsibility
to make any transmission arrangements necessary for delivery of electric power produced
from a resource inside or outside of ERCOT to the interconnection with ERCOT.
38.7 Changes in Service Requests: Under no circumstances shall an ERCOT Regional Transmission Service
Customer’s decision to cancel or delay the addition of a new resource in any way reduce
or relieve the ERCOT Regional Transmission Service Customer’s obligation to pay the
costs expended by the Transmission Provider to conduct the Facility Study.
38.8 Annual Load and Resource Information Updates: The ERCOT Regional Transmission Service Customer shall provide the ERCOT
IO with annual updates of load and resource forecasts. The ERCOT Regional
Transmission Service Customer also shall provide the ERCOT IO with timely written
notice of material changes in any other information provided in its Application relating to
the ERCOT Regional Transmission Service Customer’s load, resources, its transmission
system or other aspects of its facilities or operations affecting the Transmission
Provider’s ability to provide reliable service under this Tariff. Each of TCC and TNC
will provide the ERCOT IO similar information.
38.9 Termination of Transmission Service: An ERCOT Regional Transmission Service Customer may terminate service
under this Tariff after providing the Transmission Provider and ERCOT with written
notice of the ERCOT Regional Transmission Service Customer's intention to terminate.
An ERCOT Regional Transmission Service Customer's provision of notice to terminate
service under this Tariff shall not relieve the ERCOT Regional Transmission Service
Customer of its obligation to pay the Transmission Provider any rates, charges, or fees,
including contributions in aid of construction, or for service previously provided under
the applicable interconnection service agreement and that are owed to the Transmission
Provider as of the date of termination.
38.10 Initiating Service in the Absence of an Executed Servi Initiating Service in the Absence of an Executed Service Agreement: If the Transmission Provider and an Eligible Customer requesting Transmission
Service under this Part IV cannot agree on all the terms and conditions of the Service
Agreement, the Transmission Provider shall file with the Commission, no later than thirty
(30) days after the date the Eligible Customer provides written notification directing the
Transmission Provider to file, an unexecuted Service Agreement containing terms and
conditions deemed appropriate by the Transmission Provider for such requested ERCOT
Regional Transmission Service. Upon acceptance for filing by the Commission of such
unexecuted agreement, the ERCOT Regional Transmission Service Customer shall be
deemed to have agreed to (i) compensate the Transmission Provider at whatever rate the
Commission ultimately determines to be just and reasonable, and (ii) comply with all
other terms and conditions of this Tariff.
39 Rates and Charges An ERCOT Regional Transmission Service Customer taking ERCOT Regional
Transmission Service under this Tariff shall pay the Transmission Provider for any Direct
Assignment Facilities, applicable study costs, and local distribution facilities charges
consistent with Commission policy, along with the following charges:
39.1 Demand Charge for ERCOT Regional Transmission Service: An ERCOT Regional Transmission Service Customer taking ERCOT Regional
Transmission Service under Part IV of this Tariff shall pay the Transmission Provider a
monthly demand charge. The monthly demand charge under this Tariff for ERCOT
Regional Transmission Service shall be the charges set forth in Attachment K.
39.2 Commercial Terms for Transmission Service: Billing and Payment: Within a reasonable time after the first day of each month,
the Transmission Provider shall issue invoices for the prior month’s transmission service
to the ERCOT Regional Transmission Service Customers.
(1) An invoice for transmission service shall be paid so that the Transmission
Provider will receive the funds by the 35th calendar day after the date of issuance of the
invoice, unless the Transmission Provider and the ERCOT Regional Transmission
Service Customer agree on another mutually acceptable deadline. All payments shall be
made in immediately available funds payable to the Transmission Provider or by wire
transfer to a bank named by the service provider or by other mutually acceptable terms.
(2) Interest on any delinquent amounts shall be calculated from the due date
of the bill to the date of payment and compounded monthly using the interest rate set by
the Commission in accordance with 18 CFR §35.19(a). When payments are made by
mail, bills shall be considered as having been paid on the date of receipt by the
Transmission Provider.
(3) In the event the ERCOT Regional Transmission Service Customer fails,
for any reason other than a billing dispute as described in subparagraph (A) of this
paragraph, to make payment to the Transmission Provider on or before the due date, and
such failure of payment is not corrected within 30 calendar days after the Transmission
Provider notifies the ERCOT Regional Transmission Service Customer to cure such
failure, the customer shall be deemed to be in default.
(A) Upon the occurrence of a default, the Transmission Provider may initiate a
proceeding with the Commission to terminate service. If the Commission finds that a
default has occurred the ERCOT Regional Transmission Service Customer shall pay to
the Transmission Provider an amount equal to two times the amount of the payment that
the customer fails to pay in addition to any other remedy ordered by the commission. In
the event of a billing dispute between the Transmission Provider and the ERCOT
Regional Transmission Service Customer, the Transmission Provider will continue to
provide service during the pendency of the proceeding, as long as the ERCOT Regional
Transmission Service Customer:
(i) continues to make all payments not in dispute;
(ii) pays into an independent escrow account the portion of the invoice in
dispute, pending resolution of such dispute.
(B) If the ERCOT Regional Transmission Service Customer fails to meet the
requirements in subparagraph (A) of this paragraph, then the Transmission Provider will
provide notice to the ERCOT Regional Transmission Service Customer and to the
Commission of its intention to terminate service.
(C) Any dispute arising in connection with the termination or proposed
termination of service shall be referred to the alternative dispute resolution process
described in Chapter 25.
40 System Reliability (a) Notwithstanding any other provision of Part IV of this Tariff, the
Transmission Provider reserves the right, consistent with Good Utility Practice and on a
non-discriminatory basis, to interrupt ERCOT Regional Transmission Service provided
under this Part IV without liability on the part of the Transmission Provider for the
purpose of making necessary adjustments to, changes in, or repairs to its lines,
substations and other facilities, or where the continuance of ERCOT Regional
Transmission Service would endanger persons or property.
(b) In the event of any adverse condition or disturbance on the TCC and TNC
Transmission System or on any other system directly or indirectly interconnected with
the TCC and TNC Transmission System, the Transmission Provider, consistent with
Good Utility Practice, also may interrupt ERCOT Regional Transmission Service
provided under this Part IV on a non-discriminatory basis in order to limit the extent or
damage of such adverse condition or disturbance, prevent damage to generating or
transmission facilities, or expedite restoration of service.
(c) The Transmission Provider will give the ERCOT IO and affected ERCOT
Regional Transmission Service Customers as much advance notice as is practicable in the
event of any such interruption.
41 ERCOT Ancillary Services The Transmission Provider shall not provide ERCOT Ancillary Services under
this Tariff. ERCOT Regional Customers shall obtain all ERCOT Ancillary Services
pursuant to the procedures set forth in the ERCOT Protocols. AEP will provide QSE and
ancillary services only to those ERCOT Regional Transmission Service Customers with
whom AEP has an interim QSE Agreement. ERCOT Regional Transmission Service
Customers may obtain comparable ancillary services from the ERCOT IO in its capacity
as the supplier of last resort.
SCHEDULE 1 SYSTEM SCHEDULING, SYSTEM CONTROL AND DISPATCH SE SYSTEM SCHEDULING, SYSTEM CONTROL AND DISPATCH SERVICE
This service is required to schedule the movement of power through, out of,
within, or into a Control Area. This service can be provided only by the operator of the
Control Area in which the transmission facilities used for transmission service are
located. System Scheduling, System Control and Dispatch Service is to be provided
directly by the Transmission Provider (if the Transmission Provider is the Control Area
operator) or indirectly by the Transmission Provider making arrangements with the
Control Area operator that performs this service for the Transmission Provider's
Transmission System. The Transmission Customer must purchase this service from the
Transmission Provider or the Control Area operator. The charges for System Scheduling,
System Control and Dispatch Service are to be based on the rates set forth below. To the
extent the Control Area operator performs this service for the Transmission Provider,
charges to the Transmission Customer are to reflect only a pass-through of the costs
charged to the Transmission Provider by that Control Area operator.
Transmission Customers taking service under Part II or Part III may elect either
Hourly Scheduling Service or Dynamic Scheduling Service.
Hourly Scheduling Service is a service that employs specific hourly schedules for
the transmission of energy by coordinating the event among the affected Control Areas.
The Transmission Customer provides a schedule, from midnight to midnight, containing
up to 24 hourly values that signify the desired amount of energy to be transmitted from
the supply host Control Area to a single load host Control Area. The service is different
from Dynamic Scheduling Service in that the scheduled amount is not changed by a
dynamic real-time signal, but is a fixed hourly amount. Hourly Scheduling Service
includes set up, modification, confirmation, implementation, accounting and necessary
reporting of the transaction, as well as the use of supporting hardware and software
systems for control and tracking of schedules. Schedules shall be made in whole MW
increments.
Dynamic Scheduling Service enables remote load regulation for a load, by
effecting adjustments in schedules for energy transfers where the desired power level of
the transaction is communicated by a real-time signal signifying an amount of generation,
an amount of load, a regulation requirement, or a share of the output of a generator. The
real-time signal indicating the dynamic schedule amount must be provided
simultaneously to both the sending and receiving Control Areas for incorporation into
their respective real-time control systems. Both sending and receiving Control Areas
must integrate the signal and agree on the hourly energy transfers. The Transmission
Customer is responsible for telemetry and signal processing costs. Any charges imposed
by the Transmission Provider for telemetry and signal processing shall be stated in the
Service Agreement. Dynamic Scheduling Service must be arranged with both the
sending and receiving Control Areas. Dynamic Scheduling Service includes set up,
modifications, communications between sending and receiving Control Areas,
confirmation, accounting and necessary reporting of the transactions, as well as
supporting hardware and software systems for control and tracking of schedules.
Schedules shall be made in whole MW increments.
The rates for System Scheduling, System Control and Dispatch Service for
transmission to a delivery point located in the AEP West Zone (SPP) shall be up to:
AEP West Zone (SPP) Per MW-month $30.00
Per MW-week $ 6.90 Per MW-day $ 0.99 Per MW-hour $ 0.04 Such rates shall be applied to the amount of Reserved Capacity for transmission service
under Part II and to the amount of monthly Network Load for transmission service under
Part III.
SCHEDULE 2 SYSTEM REACTIVE SUPPLY AND VOLTAGE CONTROL FROM SYSTEM REACTIVE SUPPLY AND VOLTAGE CONTROL FROM GENERATION OR OTHER SOURCES SERVICE In order to maintain transmission voltages on the Transmission Provider's
transmission facilities within acceptable limits, generation facilities and non-generation
resources capable of providing this service that are under the control of the control area
operator are operated to produce (or absorb) reactive power. Thus, System Reactive
Supply and Voltage Control from Generation or Other Sources Service must be provided
for each transaction on the Transmission Provider's transmission facilities. The amount
of System Reactive Supply and Voltage Control from Generation or Other Sources
Service that must be supplied with respect to the Transmission Customer's transaction
will be determined based on the reactive power support necessary to maintain
transmission voltages within limits that are generally accepted in the region and
consistently adhered to by the Transmission Provider.
System Reactive Supply and Voltage Control from Generation or Other Sources
Service is to be provided directly by the Transmission Provider (if the Transmission
Provider is the Control Area operator) or indirectly by the Transmission Provider making
arrangements with the Control Area operator that performs this service for the
Transmission Provider's Transmission System. The Transmission Customer must
purchase this service from the Transmission Provider or the Control Area operator. The
Transmission Customer must obtain Ancillary Services to serve load in ERCOT under
the ERCOT Protocols. The charges for such service will be based on the rates set forth
below. To the extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to reflect only a pass-
through of the costs charged to the Transmission Provider by the Control Area operator.
The rates for System Reactive Supply and Voltage Control from Generation
Sources Service for transmission to a delivery point located in the AEP West Zone (SPP)
shall be up to:
AEP West Zone (SPP) Per MW-month $48.05 Per MW-week $11.06 Per MW-day On-Peak $ 2.21 Off-Peak $ 1.58 Per MW-hour On-Peak $ 0.14 Off-Peak $ 0.07 Such rates shall be applied to the amount of Reserved Capacity for transmission
service under Part II and to the amount of monthly Network Load for transmission
service under Part III. Although the Transmission Customer is required to take this
ancillary service from the Transmission Provider, the Transmission Customer may reduce
the charge for this service to the extent it can self supply reactive power.
The total charge in any day, pursuant to an hourly service reservation, shall not
exceed the applicable rate for daily service specified above for the applicable
Transmission Provider Control Area, times the highest amount of hourly service reserved
in any hour during such day. In addition, the total charge in any week pursuant to a
reservation for hourly or daily service shall not exceed the rate for weekly service
specified above for the applicable Transmission Provider Control Area, times the highest
amount of hourly or daily service reserved in any hour or day during such week.
The Off-Peak Period shall be all hours of Saturday, Sunday, New Year's Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day
and the hours between 11:00 p.m. and 7:00 a.m. local time on all other days. The On-
Peak Period shall be all hours other than the hours in the Off-Peak Period.
SCHEDULE 3 SYSTEM REGULATION AND FREQUENCY RESPONSE SERVICE System Regulation and Frequency Response Service is necessary to provide for
the continuous balancing of resources (generation and interchange) with load and for
maintaining scheduled Interconnection frequency at sixty cycles per second (60 Hz).
System Regulation and Frequency Response Service is accomplished by committing on
line generation whose output is raised or lowered (predominantly through the use of
automatic generating control equipment) and by other non-generation resources capable
of providing this service as necessary to follow the moment by moment changes in load.
The obligation to maintain this balance between resources and load lies with the
Transmission Provider (or the Control Area operator that performs this function for the
Transmission Provider). The Transmission Provider must offer this service when the
transmission service is used to serve load within one of its Control Areas. The
Transmission Customer must either purchase this service from the Transmission Provider
or make alternative comparable arrangements to satisfy its System Regulation and
Frequency Response Service obligation. The amount of and charges for System
Regulation and Frequency Response Service shall be based on the cost of providing the
service in the Control Area in which the Transmission Customer's load is (or portions of
such load are) located. To the extent the Control Area operator performs this service for
the Transmission Provider, charges to the Transmission Customer are to reflect only a
pass-through of the costs charged to the Transmission Provider by that Control Area
operator.
Transmission Customers serving load in any of the Transmission Provider's
Control Areas that satisfactorily demonstrate that they will provide, or have made
alternative comparable arrangements for the provision of, System Regulation and
Frequency Response Service, consistent with applicable regional reliability standards,
will not be charged for System Regulation and Frequency Response Service.
Other Transmission Customers will be charged for System Regulation and
Frequency Response Service. The charges for System Regulation and Frequency
Response Service will be based on the following Capacity Cost Per MW-month, load
percentages and resulting rates for the Transmission Provider Control Area:
AEP West Zone (SPP) Capacity Cost Per MW-month $2,609.00 Load Percentage Required 1.2%
Rates (Up to): Per MW-month $ 31.31 Per MW-week $ 7.20 Per MW-day On-Peak $ 1.44 Off-Peak $ 1.02 Per MW-hour On-Peak $ 0.09 Off-Peak $ 0.04 Such rates shall be applied to the amount of Reserved Capacity for transmission
service under Part II and to the amount of Monthly Network Load for transmission
service under Part III. The total charge in any day, pursuant to an hourly service
reservation, shall not exceed the applicable rate for daily service specified above for the
applicable Transmission Provider Control Area, times the highest amount of hourly
service reserved in any hour during such day. In addition, the total charge in any week
pursuant to a reservation for hourly or daily service shall not exceed the rate for weekly
service specified above for the applicable Transmission Provider Control Area, times the
highest amount of hourly or daily service reserved in any hour or day during such week.
A Transmission Customer purchasing System Regulation and Frequency Response
Service for load in the SPP will be required to purchase an amount of reserved capacity
equal to 1.2 percent of the Transmission Customer’s reserved capacity for point-to-point
transmission service or 1.2 percent of the Transmission Customer’s network load
responsibility for Network Integration Transmission Service. The billing determinants
for these services shall be reduced by any portion of the applicable percentage purchase
obligations that a Transmission Customer obtains from third parties or supplies itself.
The Off-Peak Period shall be all hours of Saturday, Sunday, New Year's Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day
and the hours between 11:00 p.m. and 7:00 a.m. local time on all other days. The On-
Peak Period shall be all hours other than the hours in the Off-Peak Period.
SCHEDULE 4 SYSTEM ENERGY IMBALANCE SERVICE (SPP) Procedure to obtain System Energy Imbalance Services are addressed in the
applicable RTO OATT.
SCHEDULE 4A RESERVE SHARING EMERGENCY ENERGY SERVICE (SPP) 1.0 - General The rate to be charged by American Electric Power (“AEP”) when supplying
reserve sharing energy to a generator-within the AEP-West Zone (SPP) control area or
any SPP Reserve Sharing Group (“RSG”) member during a reserve sharing activation
shall be the rate as provided for in this Schedule 4A.
2.0 – Rates When providing energy assistance supplied during reserve sharing activation,
AEP shall be compensated in accordance with the following:
2.1 Payment will be financial and accounting for reserve sharing energy will
be in whole megawatt-hours.
2.2 The terms Locational Imbalance Price (LIP) and Settlement Location as
used herein shall have the meaning ascribed in the SPP Tariff.
2.3 For energy provided during a reserve sharing activation, the charges shall
be the sum of (a) the greater of: (i) the hourly LIP at the Settlement Location of
the resource(s) used to provide such service, per megawatt-hour; or (ii) 110% of
the incremental cost of the AEP resource(s) used to provide such service; and (b)
the cost plus an adder of $1 per megawatt-hour of any power purchased to provide
such service.
2.4 As used in this Schedule 4A, the term “incremental cost” shall mean any
cost incurred in connection with the supply of reserve sharing energy that would
not have been incurred if the reserve sharing energy had not been supplied,
including the cost of fuel, operation and maintenance costs, energy provided for
electric losses, start-up and shut-down costs and any other cost that would not
have been otherwise incurred if the reserve sharing energy had not been supplied.
The term “incremental costs” does not include the costs of Transmission Service
or capacity.
2.5 In addition to the charges outlined above, the buyer shall pay transmission
charges associated with the delivery of reserve sharing energy pursuant to the
provisions of the SPP Tariff.
SCHEDULE 5 SYSTEM OPERATING RESERVE - SPINNING RESERVE SERV SYSTEM OPERATING RESERVE - SPINNING RESERVE SERVICE (SPP) System Spinning Reserve Service (SPP) is needed to serve load immediately in
the event of a system contingency. Spinning Reserve Service (SPP) may be provided by
generating units that are on line and loaded at less than maximum output and by non-
generation resources capable of providing this service. The Transmission Provider must
offer this service when the transmission service is used to serve load within one of its
Control Areas. The Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to satisfy its System
Spinning Reserve Service. The amount of and charges for Spinning Reserve Service shall
be based on the cost of providing the service in the Control Area in which the
Transmission Customer's load is (or portions of such load are) located. To the extent the
Control Area operator performs this service for the Transmission Provider, charges to the
Transmission Customer are to reflect only a pass-through of the costs charged to the
Transmission Provider by that Control Area operator.
Transmission Customers serving load in the AEP West Zone SPP Control Area
that satisfactorily demonstrate that they will provide, or have made alternative
comparable arrangements for the provision of, Spinning Reserve Service, consistent with
applicable regional reliability standards, will not be charged for Spinning Reserve
Service.
Other Transmission Customers will be charged for Spinning Reserve Service, as
applicable. The charges for Spinning Reserve Service will be based on the following
Capacity Cost Per MW-month, load percentages and resulting rates for the Transmission
Provider Control Area:
AEP West Zone (SPP)
Capacity Cost Per MW-month $3,482.00 Load Percentage Required 2.1% Rates (Up to):
Per MW-month $ 73.12 Per MW-week $ 16.83 Per MW-day On-Peak $ 3.37 Off-Peak $ 2.40 Per MW-hour On-Peak $ 0.21 Off-Peak $ 0.10 Such rates shall be applied to the amount of Reserved Capacity for transmission
service under Part II and to the amount of monthly Network Load for transmission
service under Part III. A Transmission Customer purchasing Spinning Reserve Service
(SPP) will be required to purchase an amount of reserved capacity equal to 2.1 percent of
the Transmission Customer’s reserved capacity for Point-to-Point Transmission Service
or 2.1 percent of the Transmission Customer’s Network Load for Network Integration
Transmission Service. The billing determinants for this service shall be reduced by any
portion of the applicable percentage purchase obligation that a Transmission Customer
obtains from third parties or supplies itself.
The total charge in any day, pursuant to an hourly service reservation, shall not
exceed the applicable rate for daily service specified above for the applicable
Transmission Provider Control Area, times the highest amount of hourly service reserved
in any hour during such day. In addition, the total charge in any week pursuant to a
reservation for hourly or daily service shall not exceed the rate for weekly service
specified above for the applicable Transmission Provider Control Area, times the highest
amount of hourly or daily service reserved in any hour or day during such week.
The Off-Peak Period shall be all hours of Saturday, Sunday, New Year's Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day
and the hours between 11:00 p.m. and 7:00 a.m. local time on all other days. The On-
Peak Period shall be all hours other than the hours in the Off-Peak Period.
SCHEDULE 6 SYSTEM OPERATING RESERVE -SUPPLEMENTAL RESERVE SE SYSTEM OPERATING RESERVE -- SUPPLEMENTAL RESERVE SERVICE (SPP) System Supplemental Reserve Service (SPP) is needed to serve load in the event
of a system contingency; however, it is not available immediately to serve load but rather
within a short period of time. Supplemental Reserve Service (SPP) may be provided by
generating units that are on line but unloaded, by quick start generation or by
interruptible load or other non-generation resources capable of providing this service.
The Transmission Provider must offer this service when the transmission service is used
to serve load within one of its Control Areas. The Transmission Customer must either
purchase this service from the Transmission Provider or make alternative comparable
arrangements to satisfy its Supplemental Reserve Service obligation.
The amount of and charges for Supplemental Reserve Service or Spinning
Reserve Service shall be based on the Control Area in which the Transmission
Customer's load is (or portions of such load are) located. To the extent the Control Area
operator performs this service for the Transmission Provider, charges to the Transmission
Customer are to reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.
Transmission Customers serving load in the AEP West Zone SPP Control Area
that satisfactorily demonstrate that they will provide, or have made alternative
comparable arrangements for the provision of, Supplemental Reserve Service, consistent
with applicable regional reliability standards, will not be charged for Supplemental
Reserve Service.
Other Transmission Customers will be charged for Supplemental Reserve Service,
as applicable. The charges for Supplemental Reserve Service will be based on the
following Capacity Cost Per MW-month, load percentages and resulting rates for the
Transmission Provider Control Area:
AEP West Zone (SPP)
Capacity Cost Per MW-month $3,467.00 Load Percentage Required 2.1% Rates (Up to): Per MW-month $ 72.80 Per MW-week $ 16.75 Per MW-day On-Peak $ 3.35 Off-Peak $ 2.39 Per MW-hour On-Peak $ 0.21 Off-Peak $ 0.10 Such rates shall be applied to the amount of Reserved Capacity for transmission
service under Part II and to the amount of monthly Network Load for transmission
service under Part III. A Transmission Customer purchasing Supplemental Reserve
Service (SPP) will be required to purchase an amount of reserved capacity equal to 2.1
percent of the Transmission Customer’s reserved capacity for Point-to-Point
Transmission Service or 2.1 percent of the Transmission Customer’s Network Load for
Network Integration Transmission Service. The billing determinants for this service shall
be reduced by any portion of the applicable percentage purchase obligation that a
Transmission Customer obtains from third parties or supplies itself.
The total charge in any day, pursuant to an hourly service reservation, shall not
exceed the applicable rate for daily service specified above for the applicable
Transmission Provider Control Area, times the highest amount of hourly service reserved
in any hour during such day. In addition, the total charge in any week pursuant to a
reservation for hourly or daily service shall not exceed the rate for weekly service
specified above for the applicable Transmission Provider Control Area, times the highest
amount of hourly or daily service reserved in any hour or day during such week.
The Off-Peak Period shall be all hours of Saturday, Sunday, New Year's Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day
and the hours between 11:00 p.m. and 7:00 a.m. local time on all other days. The On-
Peak Period shall be all hours other than the hours in the Off-Peak Period.
SCHEDULE 7 LONG TERM FIRM AND SHORT TERM FIRM POINT TO POINT LONG-TERM FIRM AND SHORT-TERM FIRM POINT-TO-POINT TRANSMISSION SERVICE The Transmission Customer shall compensate the Transmission Provider each
month for Reserved Capacity. The rates for Long-Term Firm and Short-Term Firm
Point-to-Point Transmission Service to points of delivery located in the AEP West Zone
shall be:
AEP West Zone
Per MW-month $ 1,050.00 Per MW-week $ 241.64 Per MW-day On-Peak $ 48.33 Off-Peak $ 34.52 The total demand charge in any week, pursuant to a reservation for Daily
delivery, shall not exceed the weekly rate specified above times the highest amount in
megawatts of Reserved Capacity in any day during such week.
Discounts: Three principal requirements apply to discounts for transmission
service as follows (1) any offer of a discount made by the Transmission Provider must be
announced to all Eligible Customers solely by posting on the OASIS, (2) any customer-
initiated requests for discounts (including requests for use by one's wholesale merchant or
an Affiliate's use) must occur solely by posting on the OASIS, and (3) once a discount is
negotiated, details must be immediately posted on the OASIS. For any discount agreed
upon for service on a path, from point(s) of receipt to point(s) of delivery, the
Transmission Provider must offer the same discounted transmission service rate for the
same time period to all Eligible Customers on all unconstrained transmission paths that
go to the same point(s) of delivery on the Transmission System.
An Eligible Customer that takes ERCOT Regional Transmission Service under
Part IV of this Tariff and also takes Transmission Service under Part II of the SPP Tariff
to import power and energy into ERCOT to serve its customers in ERCOT shall have its
facilities charges under Attachment T of the SPP Tariff reduced by 45.27% for
transmission through the AEP West Zone.
A Transmission Customer that takes transmission service under Part II of this
Tariff in conjunction with the use of the SPP Tariff to transmit energy from a Point of
Receipt located in ERCOT to a Point of Delivery located outside of ERCOT, except to a
Point of Delivery located in the AEP East Zone, shall in addition to charges due under the
SPP Tariff pay facilities charges under this Schedule 7 that are reduced by 54.73%.
For purposes of this Schedule 7, the Off-Peak Period shall be Saturdays, Sundays,
New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and
Christmas Day and the On-Peak Period shall be all days that are not in the Off-Peak
Period.
Resales: The rates and rules governing charges and discounts stated above shall
not apply to resales of transmission service, compensation for which shall be governed by
section 23.1 of the Tariff.
SCHEDULE 8 NON FIRM POINT TO POINT TRANSMISSION SERVICE The Transmission Customer shall compensate the Transmission Provider for Non
Firm Point To Point Transmission Service up to the charges set forth below. The rates
for Non-Firm Point-to-Point Transmission Service to points of delivery located in the
AEP West Zone shall be up to:
AEP West Zone
Per MW-month $ 1,050.00 Per MW-week (a) $ 241.64 Per MW-day On-Peak $ 48.33 Off-Peak $ 34.52
Per MW-hour On-Peak $ 3.02 Off-Peak $ 1.44 The total demand charge in any week, pursuant to a reservation for Daily
delivery, shall not exceed the weekly rate specified above times the highest amount in
megawatts of Reserved Capacity in any day during such week.
The total demand charge in any day, pursuant to a reservation for Hourly delivery,
shall not exceed the applicable daily rate specified above times the highest amount in
megawatts of Reserved Capacity in any hour during such day. In addition, the total
demand charge in any week, pursuant to a reservation for Hourly or Daily delivery, shall
not exceed the weekly rate specified above times the highest amount in megawatts of
Reserved Capacity in any hour during such week.
Discounts: Three principal requirements apply to discounts for transmission
service as follows (1) any offer of a discount made by the Transmission Provider must be
announced to all Eligible Customers solely by posting on the OASIS, (2) any customer-
initiated requests for discounts (including requests for use by one's wholesale merchant or
an Affiliate's use) must occur solely by posting on the OASIS, and (3) once a discount is
negotiated, details must be immediately posted on the OASIS. For any discount agreed
upon for service on a path, from point(s) of receipt to point(s) of delivery, the
Transmission Provider must offer the same discounted transmission service rate for the
same time period to all Eligible Customers on all unconstrained transmission paths that
go to the same point(s) of delivery on the Transmission System.
An Eligible Customer that takes ERCOT Regional Transmission Service under
Part IV of this Tariff and also takes Transmission Service under Part II of the SPP Tariff
to import power and energy into ERCOT to serve its customers in ERCOT shall have its
facilities charges under Attachment T of the SPP Tariff reduced by 45.27% for
transmission through the AEP West Zone.
A Transmission Customer that takes transmission service under Part II of this
Tariff in conjunction with the use of the SPP Tariff to transmit energy from a Point of
Receipt located in ERCOT to a Point of Delivery located outside of ERCOT, except to a
Point of Delivery located
in the AEP East Zone, shall in addition to charges due under the SPP Tariff pay
facilities charges under this Schedule 8 that are reduced by 54.73%.
For purposes of this Schedule 8, the Off-Peak Period shall be all hours of
Saturday, Sunday, New Year's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day and the hours between 11:00 p.m. and 7:00 a.m.
local time on all other days and the On-Peak Period shall be all hours that are not in the
Off-Peak Period.
Resales: The rates and rules governing charges and discounts stated above shall
not apply to resales of transmission service, compensation for which shall be governed by
section 23.1 of the Tariff.
SCHEDULE 9 LOSS COMPENSATION SERVICE Capacity and energy losses occur when a Transmission Provider delivers
electricity across its Transmission System for a Transmission Customer. A Transmission
Customer may elect to (1) supply the capacity and/or energy necessary to compensate the
Transmission Provider for such losses, (2) receive an amount of electricity at delivery
points that is reduced by the amount of losses incurred by the Transmission Provider, or
(3) purchase the capacity and/or energy necessary to compensate for such losses from the
Transmission Provider, when the Transmission Provider has such capacity and energy
available. To the extent the Transmission Provider obtains such power and energy from
another supplier, the charges to the Transmission Customer will reflect only a pass-
through of the costs charged by that entity. Average losses on the Transmission
Provider’s Transmission System will be based on the loss percentages specified in Part II,
Section 15.7 and Part III, Section 28.5 of this Tariff plus, where applicable, losses on the
distribution facilities of the Transmission Provider.
SCHEDULE 10 Generator Imbalance Service Procedure to obtain Generator Imbalance Service are addressed in the applicable
RTO OATT.
ATTACHMENT A Form of Service Agreement For Firm Point to Point Transmissi Form Of Service Agreement For Firm Point-To-Point Transmission Service 1.0 This Service Agreement, dated as of _______________, is entered into, by and
between American Electric Power Service Corporation, the Designated Agent for the
AEP Operating Companies (the "Transmission Provider"), and ____________
("Transmission Customer").
2.0 The Transmission Customer has been determined by the Transmission Provider to
have a Completed Application for Firm Point To Point Transmission Service under the
Tariff.
3.0 The Transmission Customer has provided to the Transmission Provider an
Application deposit in the amount of $_________, or the deposit requirement has been
waived, in accordance with the provisions of Section 17.3 of the Tariff.
4.0 Service under this agreement shall commence on the later of (1) the requested
service commencement date, or (2) the date on which construction of any Direct
Assignment Facilities and/or Network Upgrades are completed, or (3) such other date as
it is permitted to become effective by the Commission. Service under this agreement
shall terminate on such date as mutually agreed upon by the parties.
5.0 The Transmission Provider agrees to provide and the Transmission Customer
agrees to take and pay for Firm Point To Point Transmission Service in accordance with
the provisions of Part II of the Tariff and this Service Agreement.
6.0 The Transmission Customer also agrees that there shall be added to any amount
calculated pursuant to the Tariff an amount in dollars sufficient to reimburse the
Transmission Provider for any amounts paid or payable by the Transmission Provider as
sales, excise or similar taxes (other than taxes based upon or measured by net income) in
respect of the total amount payable to the Transmission Provider pursuant to the Tariff, in
order to allow the Transmission Provider, after provision for such taxes, to realize the net
amount payable to them under the Tariff.
7.0 Any notice or request made to or by either Party regarding this Service
Agreement shall be made to the representative of the other Party as indicated below.
Transmission Provider:
American Electric Power Service Corporation Attn: Director, Transmission and Interconnection Services 1 Riverside Plaza Columbus, OH 43215-2373
Transmission Customer:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
8.0 The Tariff is incorporated herein and made a part hereof.
9.0 The OASIS Standards and Protocols document states that if a Transmission
Provider approves a request for service, the Transmission Customer must confirm. Once
the Transmission Customer confirms an approved request, a reservation is considered to
exist. In order for a request to remain valid, the Transmission Customer must confirm
within the reservation timing requirements found in the Business Practice Standards for
Open Access Same-Time Information System (OASIS) Transactions document adopted
by the Commission or the request will be deemed withdrawn.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
Transmission Provider:
By:__________________________ ________________ _____________
Name Title Date
Transmission Customer:
By:__________________________ ________________ _____________
Name Title Date
Specifications For Long-Term Firm Point To Point Transmission Service
1.0 Term of Transaction: _______________________________________
Start Date: ________________________________________________
Termination Date: __________________________________________
2.0 Description of capacity and energy to be transmitted by Transmission Provider
including the electric Control Area in which the transaction originates.
____________________________________________________________
3.0 Point(s) of Receipt: ______________________________________
Delivering Party: _________________________________________
4.0 Point(s) of Delivery: _____________________________________
Receiving Party: __________________________________________
5.0 Maximum amount of capacity and energy to be transmitted
(Reserved Capacity): ______________________________________
6.0 Designation of party(ies) subject to reciprocal service obligation:
____________________________________________________________
____________________________________________________________
____________________________________________________________
7.0 Name(s) of any Intervening Systems providing transmission service:
____________________________________________________________
____________________________________________________________
8.0 Service under this Agreement may be subject to some combination of the charges
detailed below. (The appropriate charges for individual transactions will be determined
in accordance with the terms and conditions of the Tariff.)
8.1 Transmission Charge:__________________________________________
____________________________________________________________
8.2 System Impact and/or Facilities Study Charge(s):
____________________________________________________________
____________________________________________________________
8.3 Direct Assignment Facilities Charge: _____________________________
____________________________________________________________
8.4 Ancillary Services Charges: _____________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
8.5 Power Factor: ________________________________________________
8.6 Local Distribution Facilities Charge: ______________________________
____________________________________________________________
ATTACHMENT A-1 Form of Service Agreement for the Resale, Reassignment or Tr Form of Service Agreement for the Resale, Reassignment or Transfer of Point-To-Point Transmission Service
1.0 This Service Agreement, dated as of _______________, is entered into, by and
between ________________ (the Transmission Provider), and __________________
(the Assignee).
2.0 The Assignee has been determined by the Transmission Provider to be an Eligible
Customer under the Tariff pursuant to which the transmission service rights to be
transferred were originally obtained.
3.0 The terms and conditions for the transaction entered into under this Service
Agreement shall be subject to the terms and conditions of Part II of the Transmission
Provider’s Tariff, except for those terms and conditions negotiated by the Reseller of the
reassigned transmission capacity (pursuant to Section 23.1 of this Tariff) and the
Assignee, to include: contract effective and termination dates, the amount of reassigned
capacity or energy, point(s) of receipt and delivery. Changes by the Assignee to the
Reseller’s Points of Receipt and Points of Delivery will be subject to the provisions of
Section 23.2 of this Tariff.
4.0 The Transmission Provider shall credit the Reseller for the price reflected in the
Assignee’s Service Agreement or the associated OASIS schedule.
5.0 Any notice or request made to or by either Party regarding this Service Agreement
shall be made to the representative of the other Party as indicated below.
Transmission Provider:
______________________________
______________________________
______________________________
Assignee:
______________________________
______________________________
______________________________
6.0 The Tariff is incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
Transmission Provider:
By:____________________________ ______________________ _______________
Name Title Date
Assignee:
By:____________________________ ______________________ _______________
Name Title Date
Specifications for the Resale, Reassignment or Transfer of Long-Term Firm Point-To-Point Transmission Service
1.0 Term of Transaction: ___________________________________
Start Date: ___________________________________________
Termination Date: _____________________________________
2.0 Description of capacity and energy to be transmitted by Transmission Provider
including the electric Control Area in which the transaction originates.
_______________________________________________________
3.0 Point(s) of Receipt:___________________________________
Delivering Party:_______________________________________
4.0 Point(s) of Delivery:__________________________________
Receiving Party:______________________________________
5.0 Maximum amount of reassigned capacity: __________________
6.0 Designation of party(ies) subject to reciprocal service obligation:
_________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
7.0 Name(s) of any Intervening Systems providing transmission service:
____________________________________________________________
__________________________________________________________________
8.0 Service under this Agreement may be subject to some combination of the charges
detailed below. (The appropriate charges for individual transactions will be determined in
accordance with the terms and conditions of the Tariff.)
8.1 Transmission Charge:________________________________
____________________________________________________
8.2 System Impact and/or Facilities Study Charge(s):
__________________________________________________
__________________________________________________
8.3 Direct Assignment Facilities Charge:____________________
_____________________________________________________
8.4 Ancillary Services Charges: ________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
9.0 Name of Reseller of the reassigned transmission capacity:
___________________________________________________________
ATTACHMENT B Form of Service Agreement for Non-Firm Point-To-Point Transm Form Of Service Agreement For Non-Firm Point-To-Point Transmission Service
1.0 This Service Agreement, dated as of _______________, is entered into, by and
between American Electric Power Service Corporation, the Designated Agent for
the AEP Operating Companies (the "Transmission Provider"), and
________________ ("Transmission Customer").
2.0 The Transmission Customer has been determined by the Transmission Provider to
be a Transmission Customer under Part II of the Tariff and has filed a Completed
Application for Non-Firm Point-To-Point Transmission Service in accordance
with Section 18.2 of the Tariff.
3.0 Service under this Agreement shall be provided by the Transmission Provider
upon request by an authorized representative of the Transmission Customer.
4.0 The Transmission Customer agrees to supply information the Transmission
Provider deems reasonably necessary in accordance with Good Utility Practice in
order for it to provide the requested service.
5.0 The Transmission Provider agrees to provide and the Transmission Customer
agrees to take and pay for Non-Firm Point-To-Point Transmission Service in
accordance with the provisions of Part II of the Tariff and this Service Agreement.
6.0 The Transmission Customer also agrees that there shall be added to any amount
calculated pursuant to the Tariff an amount in dollars sufficient to reimburse the
Transmission Provider for any amounts paid or payable by the Transmission
Provider as sales, excise or similar taxes (other than taxes based upon or measured
by net income) in respect of the total amount payable to the Transmission
Provider pursuant to the Tariff, in order to allow the Transmission Provider, after
provision for such taxes, to realize the net amount payable to them under the
Tariff.
7.0 Any notice or request made to or by either Party regarding this Service
Agreement shall be made to the representative of the other Party as indicated
below.
Transmission Provider:
American Electric Power Service Corporation Attn: Director, Transmission and Interconnection Services 1 Riverside Plaza Columbus, OH 43215-2373
Transmission Customer: ___________________________________ ___________________________________ ___________________________________ ___________________________________
8.0 The Tariff is incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
Transmission Provider:
By:__________________________ ________________
_____________
Name Title Date
Transmission Customer:
By:__________________________ ________________
_____________
Name Title Date
ATTACHMENT C Methodology to Assess Available Transfer Capability
Methodology To Assess Available Transfer Capability is addressed in the
applicable RTO OATT.
ATTACHMENT D Methodology for Completing a System Impact Study
The American Electric Power Service Corporation (AEPSC), as agent for the
AEP Operating Companies, will evaluate and plan the Transmission System to deliver
power from the Transmission Customer's designated receipt points and to the
Transmission Customer's designated delivery points on the same basis as AEPSC
assesses and plans transmission capacity to serve the Native Load Customers of the AEP
Operating Companies.
AEPSC will include the Transmission Customer's loads and power supplies in its
overall transmission planning process, as appropriate, to evaluate the availability of
capacity to transmit the Transmission Customer's power supplies to the Transmission
Customer's loads and identify any operational and/or facility changes which may be
required to effect reliable transmission of such power. The transmission planning process
used by AEPSC is described in the "American Electric Power FERC Form 715-Annual
Transmission Planning and Evaluation Report." AEPSC also complies with the NERC
planning standards, ECAR Document No. 1, SPP criteria, and ERCOT planning criteria
as appropriate.
Specifically, Part 4 of FERC Form 715 describes the criteria used by AEPSC to
assess and plan the Transmission System to meet the AEP Operating Companies' load
responsibilities. Part 5 of FERC Form 715 provides a description of the modeling and
study considerations used in the transmission planning process. The following is a
description of the transmission planning process and testing criteria used by AEPSC in
the assessment and planning of the Transmission System to provide Network Integration
Service and Point-To-Point Transmission Services.
1. PLANNING PROCESS
The planning process provides the focus for establishing an appropriate level of
transmission system reliability. That process encompasses a continuum of activities from
near-term assessments, or appraisals, of system performance to long-term facility
addition studies and longer-term strategic planning. The planning process typically
begins with a deterministic appraisal of Transmission System performance. When such
appraisals identify potential problems, detailed studies are conducted to evaluate the
severity of the problem and to develop an optimal plan to remove or mitigate the
deficiency.
Near-term assessments, also referred to as operational planning, look ahead up to
one year. These appraisals verify that the Transmission System, as planned and built
based on long-term predictions and assumptions, is adequate to meet the actual
requirements that emerge. Delays in transmission reinforcements, and changing power
flow patterns or performance expectations, also influence the need for short-term
appraisals. These appraisals also provide an early warning of future system reinforcement
needs. Operational planning appraisals are conducted in a manner similar to facility
planning appraisals. The major difference is that problems cannot be corrected by
transmission reinforcements due to insufficient lead time. Short-term studies focus on
emerging system problems and on establishing operating procedures to mitigate, as much
as possible, any transmission problems detected by the operators. Long-term facility
planning appraisals analyze anticipated system conditions over a time period from l to 10
years into the future. Long-term planning of the Transmission System allows adequate
time to identify emerging trends and system deficiencies and then to plan and build
needed transmission reinforcements, including time for lengthy regulatory approval
processes. Conceptual strategic planning studies beyond the 10-year period provide
process as well as framework for coordinating the development of specific transmission
reinforcements that have differing time and spatial attributes.
Long-term facility planning and near-term operational planning studies are
typically conducted for the Transmission System in accordance with the transmission
testing criteria described in Section 2. The majority of these studies are conducted
internally by AEPSC system planners, using information generally available from
neighboring electric utilities and from Transmission Customers. However, as needed,
joint planning studies involving one or more neighboring systems may be carried out to
assess and enhance interfaces between the AEP Operating Companies and their neighbors
through coordinated operating procedures or development of new interconnection
facilities.
Using the process described above, AEPSC will develop plans and
recommendations for the AEP Operating Companies regarding facilities that they should
construct and place into service to assure sufficient transmission capacity will be
available to deliver power from the Transmission Customer's resources to the Customer's
load on a basis comparable to the delivery by the Transmission Provider of the resources
of the AEP Operating Companies to their respective Native Load Customers.
2. TRANSMISSION TESTING CRITERIA
2.1 Steady State Testing Criteria
The planning process for the Transmission System embraces two major sets of
testing criteria to ensure reliability. The first set, which applies to both bulk transmission
and local area transmission assessment and planning, includes all critical single and
double contingencies. The second set, which is applicable only to the bulk transmission
system, includes more severe multiple contingencies (such as those found in ECAR
Document No. l) and is primarily intended to test the potential for system cascading
faults.
For bulk transmission planning, the testing criteria are deterministic in nature;
these outages serve as surrogates for a broad range of actual operating conditions that the
power system will have to withstand in a reliable fashion.
2.2 Single and Double Contingencies
The testing criteria for area transmission are usually limited to single-
contingencies for the LV transmission system (23 kV to 88 kV) and single or double
contingencies for the HV transmission system (138 kV and 161 kV). This contrasts with
the criteria for the EHV transmission system, where more severe multiple contingencies
are also considered.
Contingencies include the forced or scheduled outage of generating units,
transmission circuits, transformers, or other equipment. In general, a single contingency
is defined as the outage of any one of these facilities. A single facility is defined based on
the arrangement of automatic protective devices. Double circuit tower outages, breaker
failures, station outages, common right-of-way outages, and other common mode failures
may be a single or double contingency failure depending on established practice in the
applicable reliability region.
Double contingencies, being a more severe test of system performance, are used
as a surrogate for the significant uncertainties that are inherent in the planning process.
Double contingency tests are frequently applied in facility planning studies of the bulk
transmission and HV area transmission systems of AEP. Typically, these tests determine
the need for bulk transmission system reinforcements and major enhancements to 138 kV
systems.
Single contingencies are tested with firm transfers, third-party transfers, and the
expected level of AEP opportunity transfers, i.e., the desired first contingency total
transfer capability (FCTTC) level. Double contingencies are also tested with the
maximum expected level of AEP firm transfers and third-party transfers which affect the
Transmission System. Sensitivity studies are normally conducted for a range of
opportunity transfers and generation dispatches to test the robustness of the System.
The performance standards used to assess transmission adequacy and plan for
facility reinforcement for single and double contingencies are summarized in the FERC
Form 715 reports filed by the AEP Operating Companies. Minimum voltage levels at
generating stations and critical load buses, are station specific, but are typically higher
than minimum voltages shown in such FERC form reports.
2.3 Multiple Contingencies
The AEPSC criteria and simulated testing are primarily intended to prevent
uncontrolled area-wide cascading outages under adverse but credible conditions. The
AEP Operating Companies that are members of ECAR plan and operate their bulk
transmission facilities to meet the criteria of ECAR Document No. l. The AEP Operating
Companies that are members of SPP and ERCOT plan and operate their bulk
transmission facilities to meet the SPP planning criteria and ERCOT planning
requirements. However, new facilities would not be committed on the basis of local
overloads or voltage depressions following the severe multiple contingencies unless those
resultant conditions were expected to lead to widespread, uncontrolled outages.
2.4 Stability Testing Criteria
Stability testing covers the entire range of power system dynamics from "first
swing" transient stability to oscillatory and steady-state stability. This testing is an
essential complement to the steady state analysis embodied in the load flow testing
described above.
Power plant transient stability is an important consideration because loss of
synchronism of a generating unit or an entire generating plant can cause system
instability or uncontrolled area-wide cascading outages. When simulating system
contingencies affecting power plant stability, various types of fault and network
conditions are analyzed using the transient stability performance testing criteria described
in the FERC Form 715 reports filed by the AEP Operating Companies.
Steady-state and oscillatory stability performance problems may be initiated by a
wide variety of contingencies or operating conditions on the transmission network.
Therefore, a wide variety of network disturbances are considered when testing for steady-
state and oscillatory stability problems.
2.5 Power Transfer Testing Criteria
The power transfer capability between two interconnected systems (or
subsystems) with all facilities in service or with one or two critical components out of
service, indicates the overall strength of the network. Many definitions of power transfer
capability are possible, but uniformity is highly desirable for purposes of comparison.
Furthermore, transfer capability, however defined, is only accurate for the specific set of
system conditions under which it was derived. Therefore, the user of this information
needs to be aware of the conditions under which the transfer capability was determined
and those factors which could significantly influence the capability.
AEPSC has adopted the definitions of transfer capability, published by NERC in
"Transmission Transfer Capability," dated May 1995. The most frequently used transfer
capability definition is for First Contingency Incremental Transfer Capability (FCITC)
and is quoted below from the referenced NERC publication:
First Contingency Incremental Transfer Capability
FCITC is the amount of electric power, incremental above normal power
transfers, that can be transferred over the interconnected transmission system in a reliable
manner based on all of the following conditions:
1. For the existing or planned system configuration, and with normal (pre-
contingency) operating procedures in effect, all facility loadings are within
normal ratings and all voltages are within normal limits,
2. The electric systems are capable of absorbing the dynamic power swings,
and remaining stable, following a disturbance that results in the loss of any
single electric system element, such as a transmission line, transformer, or
generating unit, and
3. After the dynamic power swings subside following a disturbance that
results in the loss of any single electric system element as described in 2
above, and after the operation of any automatic operating systems, but
before any post-contingency operator-initiated system adjustments are
implemented, all transmission facility loadings are within emergency
ratings and all voltages are within emergency limits.
With reference to condition l above, in the case where pre-contingency facility
loadings reach normal thermal ratings at a transfer level below that at which any first
contingency transfer limits are reached, the transfer capability is defined as that transfer
level at which such normal ratings are reached. Such a transfer capability is referred to as
a normal incremental transfer capability (NITC).
First Contingency Total Transfer Capability (FCTTC) is similar to FCITC except
that the base power transfers (between the sending and receiving areas) are added to the
incremental transfers to give total transfer capability. The regional reliability councils in
which the AEP Operating Companies conduct their business have adopted guidelines for
interpreting and applying the NERC transfer capability definitions, and AEP uses these
guidelines in its internal studies as well.
ATTACHMENT E-1 Index of Firm Point-To-Point Transmission Customers Under Pa Index of Firm Point-To-Point Transmission Customers Under Part II of the Tariff Coffeyville, Kansas (City of) TexMex Energy, LLC
ATTACHMENT E-2 Index of Non-Firm Point-To-Point Transmission Service Custom Index of Non-Firm Point-to-Point Transmission Service Customers Under Part II of the Tariff None at this time.
ATTACHMENT F Service Agreement For Network Integration Transmission Servi Service Agreement For Network Integration Transmission Service
This Agreement is entered into this _____ day of _______, 20___, by and
between ____________________ ("Transmission Customer") and American Electric
Power Service Corporation, as Designated Agent for the AEP Operating Companies
("Transmission Provider"). In consideration of the mutual covenants and agreements
herein, it is agreed as follows:
Article 1. Network Integration Transmission Service.
1.1 During the term of this Agreement, as it may be amended from time to
time, the Transmission Provider agrees to provide Network Integration Transmission
Service for the Transmission Customer, and the Transmission Customer agrees to pay for
such service, in accordance with the applicable provisions of the Transmission Provider's
Open Access Transmission Tariff ("Tariff") filed with the Federal Energy Regulatory
Commission ("Commission"), and the Schedules and Attachments appended thereto, as
applicable, and for other costs identified herein or in attachments hereto as incurred on
behalf of the Transmission Customer, but not otherwise recovered from the Transmission
Customer, pursuant to said Tariff.
1.2 The terms and conditions of such Network Integration Transmission
Service shall be governed by the Tariff, as it exists at the time of this Agreement, or as
hereafter amended. The Tariff as it currently exists or as hereafter amended is
incorporated in this Agreement by reference. In the case of any conflict between this
Agreement and the Tariff, the Tariff shall control.
1.3 The Application for Network Integration Transmission Service tendered
by the Transmission Customer and accepted by the Transmission Provider for this
Agreement is hereby incorporated by this reference and made a part of this Agreement.
1.4 Agreements for System Impact or Facility Studies, if performed in
connection with this Agreement, are attached hereto.
1.5 The Service Specifications for Network Integration Transmission Service
under this Agreement as requested by the Transmission Customer and accepted by the
Transmission Provider, including, without limit, specifications regarding any Ancillary
Services provided by the Transmission Provider, the Transmission Customer or third
parties, direct assignment facilities, system upgrades, opportunity costs or customer
owned network facilities are hereby incorporated by this reference and made a part of this
Agreement.
1.6 The Transmission Customer and the Transmission Provider shall
coordinate operation of their respective systems as provided for in this Agreement, the
Tariff and the Network Operating Agreement. In furtherance thereof, an Operating
Committee chartered pursuant to the Network Operating Agreement shall be established.
Article 2. Cost Recovery Protection.
2.1 The coordinated transmission plan of the Transmission Provider and the
Transmission Customer will be predicated upon the plans of the respective Parties as to
their planned use of the Transmission System, including the Transmission Customer's
planned use of external and internal generating capacity. If the Transmission Customer
alters the planned level of use of the Transmission System so as to reduce its transmission
service payments to Company the Transmission Customer must compensate the
Transmission Provider for the unrecovered cost of any facilities constructed during the
term of the Service Agreement to accommodate service that would be reduced as a result
of the change in the Transmission Customer's capacity and/or operating plan, less the net
present value of incremental transmission revenue, if any, the Transmission Provider
would expect to derive by providing transmission service to other customers by using the
transmission capacity freed up by the Transmission Customer's change in plans.
Article 3. Effective Date and Term of Agreement.
3.1 This Agreement shall become effective and shall become a binding
obligation of the parties on the date on which the last of the following events shall have
occurred (effective date):
(a) The Transmission Provider and the Transmission Customer each shall
have caused this Agreement to be executed by their duly authorized representatives and
each shall have furnished to the other satisfactory evidence thereof or the Transmission
Customer has requested the Transmission Provider to file an unexecuted service
agreement pursuant to section 29.1 of the Tariff;
(b) This Agreement has been accepted for filing and made effective by order
of the Commission under the Federal Power Act, in which case the effective date of this
Agreement shall be as specified in the said Commission order. However, if the
Commission or any reviewing court, in such order or in any separate order, suspends this
Agreement or any part thereof, institutes an investigation or proceeding under the
provisions of the Federal Power Act with respect to the justness and reasonableness of the
provisions of this Agreement or any other agreement referred to or contemplated by this
Agreement, or imposes any conditions, limitations or qualifications under any of the
provisions of the Federal Power Act which individually or in the aggregate are
determined by Transmission Provider or the Transmission Customer to be adverse to it,
then Transmission Provider and Transmission Customer shall promptly renegotiate the
terms of this Agreement in light of such Commission or court action. Each Party will use
its best efforts to take or cause to be taken all action requisite to the end that this
Agreement shall become effective as provided herein at the earliest practicable date.
3.2 This Agreement shall continue for a term of _____ years.
3.3 The Parties agree to request an effective date of ___________.
Article 4. General.
4.1 Any notice given pursuant to this Agreement shall be in writing, delivered
by mail postage prepaid, prepaid overnight courier or facsimile, as follows:
If to Transmission Provider: American Electric Power Service Corporation Attn: Director, Transmission and Interconnection Services 1 Riverside Plaza Columbus, Ohio 43215-2373
If to Transmission Customer: ____________________________
____________________________ ____________________________ ____________________________
4.2 The above names and addresses of any Party may be changed at any time
by notice to the other parties.
4.3 This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the Parties. This Agreement shall not be assigned by either
Party without the written consent of the other Party.
4.4 The Transmission Customer also agrees that there shall be added to any
amount calculated pursuant to the Transmission Tariff an amount in dollars sufficient to
reimburse the Transmission Provider for any amounts paid or payable by the
Transmission Provider as sales, excise or similar taxes (other than taxes based upon or
measured by net income) in respect of the total amount payable to the AEP Operating
Companies pursuant to the Tariff, in order to allow the AEP Operating Companies, after
provision for such taxes, to realize the net amount payable to them under the Tariff.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
duly executed.
Transmission Customer Transmission Provider
By:______________________________ By:_________________________
Title: ____________________________ Title:________________________
Date: ____________________________ Date:________________________
ATTACHMENT G Network Operating Agreement
This Agreement is entered into this _____ day of ___________, 20___, by and
between _____________________ ("Transmission Customer") and American Electric
Power Service Corporation, as Designated Agent for the AEP Operating Companies
("Transmission Provider"). In consideration of the mutual covenants and agreements
herein, it is agreed as follows:
ARTICLE 1. INTERCONNECTED OPERATIONS
1.1 Interconnection and Delivery Points.
The Transmission Customer and the Transmission Provider shall operate their
systems in continuous synchronism through such interconnections as the
Operating Committee shall, from time to time, designate; such points being points
where power and energy may flow from, as well as to, the Transmission
Customer. The Transmission Provider and the Transmission Customer, to the
extent practicable, shall each maintain the facilities on their respective sides of
such points, and other points of delivery to the Transmission Customer's load
centers, in accordance with Good Utility Practice, each at its own expense, in
order that said facilities will operate in a reliable and satisfactory manner, and
without material reduction in their intended capacity or purpose.
If the function of any such facility is impaired or the capacity of any point
of interconnection or delivery is reduced or such synchronous operation at any
point or points of interconnection or delivery becomes interrupted, either
manually or
automatically, as a result of force majeure or maintenance coordinated by the
Parties, the Transmission Provider and the Transmission Customer will cooperate
to remove the cause of such impairment, interruption or reduction, so as to restore
normal operating conditions expeditiously.* (*NOTE: However,
notwithstanding any other provision of this Operating Agreement, the
Transmission Provider shall retain the sole responsibility and authority for
operating decisions as they relate to the integrity and security of the Transmission
System.)
1.2 Scheduling.
The Transmission Customer shall provide the Transmission Provider a schedule
in accordance with applicable NERC and Regional Reliability Council Policies
setting forth the energy to be received into any AEP Control Area on behalf of the
Transmission Customer, during the following day, at each interface between the
Transmission System and other Control Areas, in accordance with the provisions
of the Tariff. The Transmission Customer shall submit all energy delivery
schedules electronically in a form specified by the Transmission Provider.
Thereafter, the Transmission Customer may make changes in such schedules
upon such notice and with such frequency as is the standard practice of the
Transmission Provider, or as agreed by the Operating Committee.
ARTICLE 2. SERVICE CONDITIONS
2.1 Priority of Service.
Delivery of power and energy to the Transmission Customer from the
Transmission Customer's Network Resources will be on a firm basis, in all
respects, of equal priority with the Transmission Provider's other firm and native
load customers. Other deliveries
to the Transmission Customer will be provided on an as-available basis,
consistent with
the provisions of the Tariff and regional practices of the applicable AEP Control
Area. In the event that operating conditions require that loadings on the
Transmission System, a portion thereof, or interconnecting facilities, be reduced,
actions to relieve such conditions will be determined and taken on the basis of
their efficacy in providing the relief necessary.
2.2 Curtailment.
In the event a transmission constraint or other contingency causes the loss of
access to a particular power supply resource, the loss of such resource may also
require the curtailment of the Transmission Provider's or Transmission Customer's
Network Load unless the Party relying on the resource obtains substitute
resources to serve such Network Loads. To the extent that the transmission
constraint or contingency entails the loss of access to a particular power supply
resource, the Party relying on the resource shall be required to curtail Network
Load in an amount equal to the scheduled amount of such resource unless
substitute resources are provided by the affected Party within the time that is
customary in the affected AEP Control Area for obtaining replacement power
supplies.
2.3 Measurement of Network Load.
The Transmission Customer's Network Load shall be measured on an hourly or
shorter periodic integrated basis, by suitable metering equipment located at each
interconnection
and delivery point. The measurements taken and all metering equipment shall be
in accordance with the Transmission Provider's standards and practices for
similarly determining the Transmission Provider's load. The actual hourly
Network Loads, by delivery point, internal generation site and point where power
may flow to and from the Transmission Customer, with separate readings for each
direction of flow, shall be provided for each calendar month by the fifth business
day of the following calendar month or as mutually agreed by the Transmission
Provider and the Transmission Customer. If such measurements are provided by
the Transmission Customer, the information provided shall be in an electronic
format specified by the Transmission Provider. If such measurements are
provided by the Transmission Provider, the information shall be made available to
the Transmission Customer, upon request, in suitable electronic format,
coincidentally with the issuance of the Transmission Provider's billing. If the
Transmission Customer is not already being billed the cost of measuring and
billing, pursuant to a power sale transaction or otherwise, the Transmission
Customer shall compensate the Transmission Provider monthly for such costs, in
accordance with the Service Agreement. If either the Transmission Provider or
the Transmission Customer requires real-time load or facility status information
from the meter points, the other Party shall cooperate, to the extent necessary, in
order that such monitoring and telecommunication equipment as shall be needed
for such purpose may be installed and maintained during normal business hours
common to the Transmission Provider and the Transmission Customer. The
Transmission Customer shall compensate the Transmission
Provider for such costs if reasonably required in serving the Transmission
Customer and operating the network.
ARTICLE 3. COORDINATION OF PLANNING AND OPERATIONS
3.1 Operating Committee.
The Transmission Provider and the Transmission Customer shall each appoint a
member and an alternate to a Committee, and so notify the other Party of such
appointment(s) in writing. Such appointment(s) may be changed at any time by
similar notice. Each member and alternate shall be a responsible person working
with the day-to-day operations of their respective system. The Operating
Committee shall represent the Transmission Provider and the Transmission
Customer in all matters arising under this Operating Agreement and which may
be delegated to it by mutual agreement of the Parties hereto.
The principal duties of the Operating Committee shall be as follows:
a. to establish operating, scheduling and control procedures as needed to
meet the requirements of coordinated operation and this Agreement;
b. to establish accounting and billing procedures;
c. to coordinate regarding the changing service requirements of the
Transmission Customer and the course of action the Parties will pursue to
meet such requirements;
d. to coordinate regarding facility construction and maintenance as
appropriate, and to the extent agreed by the Parties; and
e. to perform such other duties as may be specifically identified in, or
required for the proper function of Part III of the Tariff, the Transmission
Customer's Service Agreement or this Agreement.
3.2 Operating Committee Agreements.
Each Party shall cooperate in providing to the Operating Committee all
information required in the performance of the Operating Committee’s duties. All
decisions and agreements made by the Operating Committee shall be evidenced in
writing. The Operating Committee shall have no power to amend the provisions
of this Operating Agreement, the Transmission Customer's Service Agreement or
the Tariff.
3.3 Operating Committee Meetings.
The Operating Committee shall meet or otherwise conference at least once each
calendar year or at the request of either Party upon reasonable notice, and each
Party may place items on the meeting agenda. All proceedings of the Operating
Committee shall be conducted by its members taking into account the exercise of
Good Utility Practice. If the Operating Committee is unable to agree on any
matter coming under its jurisdiction, that matter shall be resolved pursuant to
Section 12 of the Tariff, or otherwise, as mutually agreed by the Transmission
Customer and the Transmission Provider.
3.4 Coordinated Planning.
A subcommittee established by the Operating Committee shall meet or otherwise
conference at least once each calendar year to exchange and review all relevant
transmission planning data. The Operating Committee, or its designated
representatives,
will conduct such load flow and other system studies as are necessary to identify
any potential constraints on the Transmission System that may limit the
Transmission Customer's ability to deliver power and energy from Network
Resources to its load centers on an aggregate and individual basis (Base Case
Supply Study). The cost of the Base Case Supply Study will be considered a cost
of service recovered in the charges paid by Transmission Customer pursuant to its
charges for Network Integration Transmission Service for the applicable Control
Area. Separate reimbursement shall be made for the cost of additional studies the
Transmission Customer requests that go beyond the level of investigation
identified by the Operating Committee as sufficient for purposes of Network
Resources and Network Load integration.
In the event that studies reveal a potential limitation of the Transmission
Customer's ability to deliver power and energy to any of its load centers, the
Parties shall identify appropriate remedies for such constraints including, but not
limited to: a) construction of new transmission facilities, b) upgrade or other
improvements to existing transmission facilities, and c) temporary modification to
operating procedures designed to relieve identified constraints. The Transmission
Provider will, consistent with Good Utility Practice, endeavor to construct and
place into service sufficient transmission capacity to maintain priority of service
to the Transmission Customer. An appropriate sharing of the costs of relieving
such constraints will be determined by the Parties, consistent with the
Commission's rules, regulations, policies and precedents then in effect. If there
are no such rules, regulations, policies or precedents, and/or the Parties are unable
to agree upon an appropriate sharing of the costs, the Transmission Provider shall
submit its proposal for the sharing of such costs to the FERC for approval.
3.5 Network Resource Designation.
Section 30 of the Tariff governs designation, termination, operation and delivery
of Network Resources. In furtherance of such Tariff provisions, the Transmission
Provider and the Transmission Customer additionally agree that by September 1
of each year during any term of service under the Agreement, the Transmission
Customer shall update the generating facilities and/or contractual arrangements
(i.e. Network Resources) it will use in the next calendar year to supply its
Network Load, including the capacity, in MW, to be available from each resource
and the type of capacity, e.g., unit, system, or other types, as detailed in Exhibit
A. The Transmission Customer shall also provide at such times a forecast of the
diversified monthly peak load to be supplied at each meter point during the
corresponding calendar year. The Transmission Customer shall make such
designations with as much advance notice as is practicable prior to the initial term
of the Service Agreement. Changes in such designations may be made consistent
with the Tariff; accordingly, the Transmission Customer shall provide the
Transmission Provider as much notice as is practicable in the circumstances.
3.6 Cogeneration and Small Power Production Facilities.
If a Qualifying Facility is located or locates in the future on the Transmission
Customer's system and the owner or operator of such Qualifying Facility sells the
output of such Qualifying Facility to an entity other than the Transmission
Customer, the delivery of
such Qualifying Facility’s power and energy to any receiving entity other than
Transmission Provider shall be subject to and contingent upon proper
transmission and interconnection arrangements being established with the
Transmission Provider prior to commencement of delivery of any such power and
energy. It is the responsibility of the Transmission Customer to ensure that all
Transmission Customer generating units, including Qualifying Facilities and
Independent Power Producer generator units specified by the Transmission
Customer as a Network Resource, meet all frequency and reactive response
requirements. All generator excitation system(s) shall conform to within 80% of
the field voltage versus time criteria specified in ANSI Standard C50.13-1989, or
the latest revision thereof, in order to permit field forcing during transient
conditions. All generator governors shall be able to respond to interconnection
frequency deviations and be able to help maintain the interconnection frequency.
A Qualifying Facility shall be subject to any installation and operating guidelines,
rules, and criteria of NERC, ECAR, SPP, ERCOT and the Transmission Provider.
3.7 Voltage Support.
Transmission Customer will use reasonable best efforts to have in the shortest
practicable time, but under no circumstances greater than one year after the
request for commencement of service under this Tariff, sufficient reactive
compensation and control to (i) meet voltage schedules designated by the
Transmission Provider’s operations personnel for each Network Resource or at
each interface of the Transmission Provider with the Customer (or designated
Control Area) System where the Customer operates a
Network Resource behind the interface, or (ii) meet power factor requirements (as
may be specified in the Transmission Provider's design criteria as provided in the
Transmission Provider's FERC Form 715) at each meter point or Delivery Point
behind which the Customer does not operate a Network Resource. If
Transmission Customer does not provide the necessary reactive compensation and
control to comply with the objectives described in this Article, Transmission
Provider shall have the unilateral right to install equipment, including but not
limited to the reactive transient response equipment to meet the requirements of
Article 3.6, at Transmission Customer's expense.
3.8 Liability and Indemnification.
The provisions of Section 10.2 of the Tariff shall be applicable to the
Transmission Customer. In the event that the Transmission Provider determines
that Transmission Customer may not have the resources or authority to meet its
indemnification obligations under this Tariff, the Transmission Provider may
require that Transmission Customer procure, or cause to be procured, a policy or
policies of liability insurance to cover generally all indemnifiable liabilities that
might arise under this Operating Agreement. The Transmission Provider and its
Affiliates shall be designated under such policy or policies as either the named
insured or an additional named insured.
ARTICLE 4. GENERAL
4.1 Any notice given pursuant to this Agreement shall be in writing as follows:
If to the Transmission Provider: American Electric Power Service Corporation Attn: Director, Transmission and Interconnection
Services 1 Riverside Plaza Columbus, Ohio 43215-2373
If to the Transmission Customer: ____________________________
____________________________ ____________________________ ____________________________
4.2 The above names and addresses of any Party may be changed at any time by
notice to the other Party.
4.3 This Agreement shall inure to the benefit of and be binding upon the successors
and assigns of the Parties. This Agreement shall not be assigned by either Party
without the written consent of the others.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be duly
executed.
Transmission Customer Transmission Provider
____________________________ ____________________________
By:_________________________ By:_________________________
Title:________________________ Title:________________________
Date:________________________ Date:________________________
Exhibit A -- Page 1 of 2
ACTUAL AND FORECASTED RESOURCES AND OBLIGATIONS (MW)
FOR TEN YEAR PERIOD ENDING _____ RESOURCES 1. INSTALLED PLANT CAPABILTIY (Actual)
3 2 1 Total
2. UNAVAILABLE PLANT CAPABILITY
3 2 1 Total
3. NET PLANT CAPABILITY (1 - 2) 4. PURCHASES
A. Purchases w/Reserves B. Reserves on 4A. C. Purchases w/o Reserves Total
5. TOTAL RESOURCES (3 + 4) OBLIGATIONS 6. SALES BEFORE DSM (Actual)
A. EXISTING DSM PROGRAMS B. NEW PASSIVE DSM PROGRAMS C. MW FORECAST BEFORE ACTIVE DSM PROGRAMS D. ALL ACTIVE DSM PROGRAMS THAT REDUCE PEAK E. F. ACTIVE DSM NOT ACTIVATED AT PEAK G. SALES W/ RESERVES H. RESERVES ON 6G I. SALES W/O RESERVES J. TOTAL
RESERVES
7. RESERVES ABOVE MINIMUM (10)-(9)*0.15 TOTAL CAPABILITY 8. TOTAL CAPABILITY (3+4C-6I+11) LOAD RESPONSIBILITY 9. LOAD RESPONSIBILITY (6G - 4A) REFERENCE: Native Load Forecast w/New DSM 10. RESERVE CAPABILITY 11. PURCHASES FOR RESERVES 12. % RESERVE MARGIN (10 + 11) / (9) * 100 13. % CAPACITY MARGIN (10 + 11) / (8 - 'Off-System Sales w/ Reserves' + 4A) 14. TARGET % RESERVE MARGIN
ATTACHMENT H Annual Transmission Revenue Requirement and Monthly Service Annual Transmission Revenue Requirement and Monthly Service Charges For Network Integration Transmission Service For Network Loads served from delivery point(s) located in the AEP West Zone:
A. The monthly charge for Network Integration Transmission Service shall
be one-twelfth of the Annual Transmission Revenue Requirement in (B.1) or
(B.2.) below, as applicable, times the Customer’s Load Ratio Share, determined
as the rolling average of the Customer’s monthly Network Load in the four most
recent months of June, July, August and September, pursuant to Section 34.2 of
the Tariff (adjusted for losses to the Points of Receipt on the Transmission
system), divided by the corresponding four month rolling average of
Transmission Provider’s West Zone, Transmission System Load, pursuant to
Section 34.3 of the Tariff.
B. The Annual Transmission Revenue Requirement for purposes of
determining charges for Network Integration Transmission Service (which has
been adjusted to credit revenues from short-term firm and non-firm transmission
services) is as follows:
1. For an Eligible Customer taking service only under Part III of this
Tariff: $162,036,000; and
2. For an Eligible Customer taking service under Part III of this Tariff
in conjunction with service under Part IV of this Tariff: $88,681,579.
C. The amounts in (B.1.) and (B.2.) above shall be effective until changed by
the Transmission Provider or modified by the Commission.
ATTACHMENT I Index of Network Integration Transmission Service Customers Index of Network Integration Transmission Service Customers Under Part III of the Tariff
AEPSC Power Marketing & Trading Division as agent for the AEP Companies* (Re: West Virginia Power, Division of UtiliCorp) American Municipal Power-Ohio, Inc. City of Sturgis, Michigan Indiana Municipal Power Agency Southern Indiana Gas and Electric d/b/a Vectren Energy Delivery, Inc. Hoosier Energy Rural Electric Cooperative, and Southern Indiana Rural Electric Cooperative collectively operating as the Joint Operating Group, “JOG” * Appalachian Power Company, Columbus Southern Power Company, Indiana Michigan Power Company, Kentucky Power Company, Kingsport Power Company, Ohio Power Company, and Wheeling Power Company, all of which are doing business as AEP.
ATTACHMENT J Form of Service Agreement for ERCOT Regional Transmission S Form of Service Agreement for ERCOT Regional Transmission Service
This Service Agreement ("Agreement") is entered into this ______ day of
________, ____, by and between _____________________ ("ERCOT Regional
Transmission Service Customer") and American Electric Power Service Corporation, the
Designated Agent for AEP Texas Central Company and AEP Texas North Company
(collectively "Transmission Provider"). ERCOT Regional Transmission Service
Customer and Transmission Provider are referred to herein as Parties.
WHEREAS, Transmission Provider has determined that ERCOT Regional
Transmission Service Customer has made a valid request for ERCOT Regional
Transmission Service in accordance with Transmission Provider's Open Access Tariff
("Tariff") filed with the Federal Energy Regulatory Commission ("Commission");
WHEREAS, ERCOT Regional Transmission Service Customer has represented
that it is an Eligible Customer eligible for service under this Tariff; and
WHEREAS, the Parties intend that capitalized terms used herein shall have the
same meaning as in the Tariff;
NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein, the Parties agree as follows:
Article 1.0 ERCOT Regional Transmission Service
1.1 Transmission Provider agrees during the term of this Agreement, as it may
be amended from time to time, to provide ERCOT Regional Transmission Service
in accordance with this Tariff to allow the ERCOT Regional Transmission
Service Customer to use the TCC and TNC Transmission System for the delivery
of the output of resources located inside and outside of ERCOT to serve loads
inside or outside of ERCOT.
1.2 The terms and conditions of such ERCOT Regional Transmission Service
shall be governed by the Tariff, as in effect at the time this Agreement is executed
by ERCOT Regional Transmission Service Customer, or as the Tariff is thereafter
amended. The Tariff as it currently exists, or as it is hereafter amended, is
incorporated in this Agreement by reference. In the case of any conflict between
this Agreement and the Tariff, the Tariff shall control.
1.3 The load served by the ERCOT Regional Transmission Service Customer
is located in (check one):
[ ] The ERCOT Control Area.
[ ] The Control Area operated by _______________.
[ ] Variable (ERCOT Regional Transmission Service Customer is a
Power Marketer).
1.4 Transmission Service shall not begin until the ERCOT Regional
Transmission Service Customer has entered into all necessary Interconnection
Agreements with the Transmission Providers as required by the Tariff.
1.5 New interconnection points shall be established pursuant to this Tariff and
set forth in a separate interconnection agreement to be negotiated by the Parties.
Any charges for incremental facilities associated with such new interconnection
points will be set forth in an amendment to this Agreement.
Article 2.0 Technical and Engineering Arrangements
2.1 The technical and engineering arrangements required for service pursuant
to this Tariff shall be specified in Interconnection Agreement(s) between the
Parties.
Article 3.0 Rates and Charges
3.1 ERCOT Regional Transmission Service Customer shall pay Transmission
Provider monthly the rates and charges applicable to ERCOT Regional
Transmission Service Customer receiving ERCOT Regional Transmission
Service from Transmission Provider, as specified and determined pursuant to the
Tariff and this Agreement.
3.2 The Demand Charge, if applicable, shall be determined pursuant to
Section 39 of the Tariff.
3.3 Any Congestion Management Charges, if applicable, shall be determined
pursuant to the ERCOT Protocols
3.4 The charge for losses, if applicable, shall be determined in accordance
with the ERCOT Protocols.
3.5 Direct Assignment Facilities charges shall be as follows:
3.6 Local Distribution Facilities charges shall be as follows:
3.7. The ERCOT Regional Transmission Service Customer also agrees that
there shall be added to any amount calculated pursuant to the Tariff an amount in
dollars sufficient to reimburse the Transmission Provider for any amounts paid or
payable by the Transmission Provider as sales, excise or similar taxes (other than
taxes based upon or measured by net income) in respect of the total amount
payable to the Transmission Provider pursuant to the Tariff, in order to allow the
Transmission Provider, after provision for such taxes, to realize the net amount
payable to them under the Tariff.
Article 4.0 Effective Date and Term of Agreement
4.1 This Agreement shall become effective and shall become a binding
obligation of the Parties on the date on which the last of the following events shall
have occurred (effective date):
(a) Transmission Provider and ERCOT Regional Transmission
Service Customer shall have caused this Agreement and the necessary
Interconnection Agreements to be executed by their respective duly
authorized representatives and each shall have furnished to the other
satisfactory evidence thereof, or the ERCOT Regional Transmission
Service Customer shall have requested the Transmission Provider to file
with the Commission an unexecuted Service Agreement and
Interconnection Agreement; and
(b) This Agreement and any such Interconnection Agreement, either
executed or unexecuted, shall have been accepted for filing and made
effective by order of the Commission under the Federal Power Act, in
which case the effective date of this Agreement and the Interconnection
Agreement shall be as specified in the Commission's order. However, if
the Commission or any reviewing court, in such order or in any separate
order, suspends this Agreement or any part thereof or the Interconnection
Agreement or any part thereof, institutes an investigation or proceeding
under the provisions of the Federal Power Act with respect to the justness
and reasonableness of the provisions of this Agreement or any other
agreement referred to or contemplated by this Agreement, or imposes any
conditions, limitations or qualifications under any of the provisions of the
Federal Power Act which individually or in the aggregate are determined
by Transmission Provider or the ERCOT Regional Transmission Service
Customer to be adverse to it, then Transmission Provider and ERCOT
Regional Transmission Service Customer shall promptly renegotiate the
terms of this Agreement and the Interconnection Agreement in light of
such Commission or court action.
Each Party will use its best efforts to take or cause to be taken all action requisite to the
end that this Agreement and the Interconnection Agreement shall become effective as
provided herein at the earliest practicable date.
4.2 Transmission Provider shall file this Agreement with the Commission. The
Parties agree to request that the Commission establish an effective date of
_____________.
4.3 This Agreement shall terminate on _________________.
Article 5.0 Notice
5.1 Any notice given pursuant to this Agreement shall be in writing delivered by mail
postage prepaid, prepaid overnight courier or facsimile transmission to the following:
If to Transmission Provider:
American Electric Power Service Corporation Attn: Director, Transmission and Interconnection Services 1 Riverside Plaza Columbus, Ohio 43215-2373 If to ERCOT Regional Transmission Service Customer:
________________________ Attn: _________________ U.S. Mail: ________________________
________________________ Overnight: ________________________
________________________ (___) ___ - ____ (phone) (___) ___ - ____ (fax)
5.2 The above names, address and facsimile numbers for Transmission Provider or
ERCOT Regional Transmission Service Customer may be changed at any time by written
notice to the other Party.
Article 6.0 Use of Direct Assignment Facilities
6.1 ERCOT Regional Transmission Service Customer shall have use of Direct
Assignment Facilities pursuant to this Tariff and as listed under Exhibit A-1 to this
Agreement.
Article 7.0 Use of Local Distribution Facilities
7.1 ERCOT Regional Transmission Service Customer shall have use of Transmission
Provider's Local Distribution Facilities pursuant to this Tariff and as listed under Exhibit
A-3 to this Agreement. The charge for the use made of such facilities will be
$____________.
IN WITNESS WHEREOF, each of the Parties has caused this Network Integration
Transmission Service Agreement to be duly executed by the authorized person in the
places provided below.
ERCOT Regional Transmission Service Customer
By: ______________________________________
Name: ________________________________
Title: ________________________________
Date: ________________________________
Transmission Provider
By: ____________________________________
Name: ______________________________
Title: ______________________________
Date: ______________________________
EXHIBIT A-1 DATED _______________
Direct Assignment Facilities
EXHIBIT A-2 DATED ________________
Local Distribution Facilities
ATTACHMENT K Annual Transmission Revenue Requirement for ERCOT Regional T Annual Transmission Revenue Requirement for ERCOT Regional Transmission Service
The charges in the Attachment K, for ERCOT Regional Transmission Service
provided under Part IV of the Tariff, are made subject to final determination by the
Public Utility Commission of Texas (“PUCT”) and acceptance thereafter by the
Commission (“Final Rates”). Upon issuance of a final decision by the PUCT in Docket
Nos. 39638 and 39637, any amounts collected in excess of those resulting from the Final
Rates will be refunded, together with interest calculated in accordance with the
Commission’s regulations at 18 C.F.R. 35.19a(2)(iii). Until the Final Rates are accepted
by the Commission, charges for ERCOT Regional Transmission Service, hereunder, shall
be determined as follows:
A. For Service to Load Within ERCOT Charges for ERCOT Regional Transmission Service are to be determined by
dividing the annual facilities charge by 12, or by other means as mutually agreed upon by
the Transmission Provider and the ERCOT Regional Transmission Service Customer and
specified in the Service Agreement. Under no circumstances shall the sum of the
monthly charges due in any calendar year be more or less than the annual facilities charge
due under this Tariff.
The annual facilities charges are the sum of: (1) the product of the annual access
rate for TCC (set forth below) multiplied by the ERCOT Regional Transmission Service
Customer's demand at the time of the most recent ERCOT system coincident peak
demand, as determined by the PUCT pursuant to Chapter 25; and (2) the product of the
annual access rate for TNC (set forth below) multiplied by the ERCOT Regional
Transmission Service Customer's demand at the time of the most recent ERCOT system
coincident peak demand, as determined by the PUCT pursuant to Chapter 25.
The annual access rate for TCC is $2.035760/kW.
The annual access rate for TNC is $0.964812/kW.
B. For Service To Export Electric Power From ERCOT ERCOT Regional Transmission Service charges for exports of electric power
from ERCOT to the boundaries of ERCOT are to be based on the kilowatts that are
actually exported, the duration of the transaction and the rates set forth below. The
monthly rate for service in the on-peak season (June through September) will be one-
fourth the Transmission Provider’s annual access rate. The monthly rate for service in
the off-peak season will be one-twelfth the Transmission Provider’s annual access rate.
The weekly, daily and hourly rates for service in the on-peak season will be the annual
access rate divided by the number of weeks, days and hours respectively in the on-peak
season. The weekly, daily and hourly rates for service in the off-peak season will be the
annual access rate divided by the number of weeks, days and hours respectively in the
year. TCC’s and TNC’s charges for any transaction shall not exceed the product of their
annual access rate times the highest amount of kilowatts actually exported.
TCC TNC Annual rate per kW $2.035760 $0.964812 Monthly on-peak rate per kW $0.508940 $0.241203 Monthly off-peak rate per kW $0.169647 $0.080401 Weekly on-peak rate per kW $0.116806 $0.055358 Weekly off-peak rate per kW $0.039149 $0.018554 Daily on-peak rate per kW $0.016687 $0.007908 Daily off-peak rate per kW $0.005577 $0.002643 Hourly on-peak rate per kW $0.000695 $0.000330 Hourly off-peak rate per kW $0.000232 $0.000110
2. Monthly Retail Transmission System Use Rates The rates contained in this Section 2 of Attachment K are provided for
informational purposes only. As required by Chapter 25 of the PUCT Substantive Rules,
the transmission charges of the Transmission Provider under this Tariff (Attachment K,
Section 1), and the transmission service charges of other ERCOT transmission service
providers will be collected by the local distribution service providers (TCC & TNC)
under six customer class specific rates approved by the PUCT. Transmission Charges to
Retail Energy Providers serving consumers in the portion of ERCOT where TCC and
TNC provide distribution service will be charged per consumer in accordance with the
following:
Monthly Retail Transmission Use Rate Customer Class Billing Unit
Dollars Per BillingUnit TCC TNC 1) Residential Per Meter kWh $0.005190 $0.005803
General Service 2) Secondary ≤ 10 kW Per Meter kWh $0.002512 $0.003148 3) Secondary > 10 kW
(a) IDR Meter 4 CP kW Average $1.793 $1.953 (b) Non-IDR Meter NCP kW $1.286 $1.245
4) Primary Service (a) IDR Meter 4 CP kW Average $1.925 $1.963
(b) Non-IDR Meter NCP kW $1.628 $1.189 5 Transmission Service
IDR Meter 4 CP kW Average $1.718 $1.356 6 Lighting Service Per Estimated kWh $0.002512 $0.003148
ATTACHMENT L Index of ERCOT Regional Transmission Service Customers American Electric Power Service Corporation Amoco Energy Trading Corporation Aquila Power Corporation, Inc. Avista Energy, Inc. Bear Energy LP Big Country Electric Cooperative, Inc. BP Energy Brazos Electric Power Cooperative, Inc. Brazos Power Marketing Cooperative, Inc. Calpine Energy Services, LP Cap Rock Electric Cooperative, Inc. Cargill-Alliant, LLC Central Power and Light Company and West Texas Utilities Company Cincinnati Gas & Electric Co./PSI Energy, Inc. Citizens Lehman Powers Sales City of Austin Electric Department City of Bryan, Texas Municipal Electric System City of College Station, Texas City of Denton, Texas Municipal Utilities City of Garland, Texas City of Granbury Municipal Electric Department City of Hearne, Texas City of Robstown, Texas City of Weatherford, Texas City Public Service Board of San Antonio, Texas Coleman County Electric Cooperative, Inc. Columbia Energy Power Marketing Corporation Concho Valley Electric Cooperative, Inc. Constellation Power Source Coral Power, LLC Delhi Energy Services, Inc. Duke Energy Trading & Marketing, LLC Duke/Louis Dreyfus, LLC DuPont Power Marketing, Inc. e prime, inc. Exelon Power Team Fortis Energy Marketing and Trading El Paso Merchant Energy, LP Electric Clearinghouse, Inc. Energy Transfer Group, LLC Engage Energy US, L.P. Enron Power Marketing, Inc. Entergy Power Inc.
Entergy Power Marketing Corporation Entergy Services, Inc. Equitable Power Services Company Florida Power Corporation FPL Energy Power Marketing, Inc. Greenville Electric Utilities, Greenville, Texas Gregory Power Partners, LP Houston Lighting and Power Company Kansas City Power & Light Company Kimble Electric Cooperative, Inc. Koch Power Services, Inc. Lehman Brothers Commodity Services LG&E Power Development, Inc. LG&E Power Marketing, Inc. Lighthouse Electric Cooperative, Inc. Lower Colorado River Authority Medina Electric Cooperative Merchant Energy Group of the Americas, Inc. Merrill Lynch Global Commodities Minnesota Power & Light Company Morgan Stanley Capital Group, Inc. National Gas & Electric L.P. NorAm Energy Services NP Energy Inc. OGE Energy Resources PacifiCorp Power Marketing, Inc. PanEnergy Trading and Market Services, L.L.C. Pasadena Cogeneration, L.P. PECO Energy Company - Power Team Public Utilities Board of Brownsville Questar Energy Trading Company Rainbow Energy Marketing Corporation Rayburn Electric Cooperative, Inc. Rio Grande Cooperative, Inc. Sempra Commodities Sharyland Utilities, L.P. South Texas Electric Cooperative, Inc. Southern Company Energy Marketing, Inc. Southern Energy Trading and Marketing, Inc. Southwest Texas Electric Cooperative, Inc. Southwestern Electric Service Company Southwestern Public Service Company Taylor Electric Cooperative, Inc. Tenaska Tex-La Electric Cooperative of Texas, Inc. Texas Utilities Electric Company
Texas-New Mexico Power Company TexMex Energy, LLC The Power Company of America UtiliCorp United Valero Power Services Company Vitol Gas & Electric, L.L.C. VTEC Energy, Inc. Western Power Services Western Resources Williams Energy Services Company Bandera Electric Cooperative, Inc. Bartlett Electric Cooperative, Inc. Belfalls Electric Cooperative, Inc. Bluebonnet Electric Cooperative, Inc. Calpine Power America, LP Central Texas Electric Cooperative, Inc. Cherokee County Electric Cooperative, Inc. City of Bastrop, Texas City of Bellville, Texas City of Boerne, Texas City of Bowie, Texas City of Brady, Texas City of Brenham, Texas City of Bridgeport, Texas City of Burnet, Texas City of Cuero, Texas City of Flatonia, Texas City of Fredericksburg, Texas City of Georgetown, Texas City of Giddings, Texas City of Goldthwaite, Texas City of Gonzales, Texas City of Halletsville, Texas City of Kerrville, Texas Public Utility Board City of Hempstead, Texas City of Lampasas, Texas City of Lexington, Texas City of Llano, Texas City of Lockhart, Texas City of Luling, Texas City of Mason, Texas City of Moulton, Texas City of New Braunfels, Texas City of San Marcos, Texas City of San Saba, Texas
City of Sanger, Texas City of Schulenburg, Texas City of Seguin, Texas City of Seymour, Texas City of Shiner, Texas City of Smithville, Texas City of Waelder, Texas City of Weimer, Texas City of Whitesboro, Texas City of Yoakum, Texas Comanche County Electric Cooperative, Inc. Cooke County Electric Cooperative, Inc. Deep East Texas Electric Cooperative, Inc. DeWitt Electric Cooperative, Inc. Fannin County Electric Cooperative, Inc. Farmers Electric Cooperative, Inc. Fayette Electric Cooperative, Inc. Fort Belknap Electric Cooperative, Inc. Grayson-Collin Electric Cooperative, Inc. Guadalupe Valley Electric Cooperative, Inc. Guadelupe Power Partners, LP Hamilton County Electric Cooperative, Inc. Hilco Electric Cooperative, Inc. Houston County Electric Cooperative, Inc. J-A-C Electric Cooperative, Inc. Jackson Electric Cooperative, Inc. Jasper-Newton Electric Cooperative, Inc. Karnes Electric Cooperative, Inc. LaGrange Utilities Lamar County Electric Cooperative Association Lyntegar Electric Cooperative, Inc. Magic Valley Electric Cooperative, Inc. McLennan County Electric Cooperative, Inc. Mid-South Electric CooperativeAssociation Navarro County Electric Cooperative, Inc. Navasota Valley Electric Cooperative, Inc. NRG Power Marketing, Inc Nueces Electric Cooperative, Inc. Pedernales Electric Cooperative, Inc. Rusk County Electric Cooperative, Inc. Sam Houston Electric Cooperative, Inc. San Bernard Electric Cooperative, Inc. San Miguel Electric Cooperative, Inc. San Patricio Electric Cooperative, Inc. Sonat Power Marketing South Plains Electric Cooperative, Inc.
Texas Municipal Power Agency Tri-County Electric Cooperative, Inc. Trinity Valley Electric Cooperative, Inc. United Cooperative Services Victoria Electric Cooperative, Inc. Western Farmers Electric Cooperative, Inc. Wharton County Electric Cooperative, Inc. Wise Electric Cooperative, Inc.
ATTACHMENT M Procedures for Addressing Parallel Flows Procedures for Addressing Parallel Flows in PJM or SPP are addressed in the
applicable RTO OATT.
ERCOT operates all the transmission within its zone as a single control area and
schedules power flows with other control areas through DC ties, therefore parallel flows
are not an issue. The ERCOT Protocols can be found at
http://www.ercot.com/mktrules/protocols/current.html. They outline the procedures and
processes used by ERCOT and market participants for the orderly functioning of the
ERCOT system and regional market. The Operating Guides
http://www.ercot.com/mktrules/guides/operating/index.html, which supplement the
ERCOT Protocols, describe the working relationship between ERCOT and the entities
within the ERCOT system that interact with ERCOT on a minute-to-minute basis to
ensure the reliability and security of the ERCOT system.
ATTACHMENT N Creditworthiness Procedures I. For the purpose of determining the ability of the Transmission Customer to meet
its obligations related to service hereunder, the Transmission Provider may require
reasonable credit review procedures, which may include but shall not be limited to,
verification that the Transmission Customer is not operating under any state or federal
bankruptcy laws, is not subject to the uncertainty of pending liquidation or regulatory
proceedings in state or federal courts, and no significant collection lawsuits or judgments
are outstanding that would seriously affect the Transmission Customer's ability, in the
Transmission Provider's determination, to remain solvent. As part of this process, the
Transmission Customer may be required to furnish the Transmission Provider with the
Transmission Customer's financial reports and/or its reports to shareholders.
Creditworthiness requirements for retail electric providers in ERCOT will be governed
by Chapter 25 under certification for retail electric providers. Specifically, the
Transmission Customer will be considered creditworthy upon satisfying one of the
following conditions:
(a) At the time it enters into a transaction and throughout the term thereof, the
Transmission Customer provides the Transmission Provider evidence that its long-term
unsecured debt securities are rated BBB or better by Standard & Poor's Corporation, or
Baa2 or better by Moody's Investor Service, or that its common stock is rated B+ or
better by Standard and Poor's Corporation, it being the Transmission Customer's
obligation to notify the Transmission Provider of any adverse changes in such ratings.
(b) The Transmission Customer either prepays for service or provides an
unconditional letter of credit for an amount equal to or greater than the total charges for
the term of the transaction. Any letter of credit provided to the Transmission Provider
must be issued by a commercial bank or financial institution located in the United States
or Canada whose long-term unsecured debt securities are rated A or better by Standard &
Poor's Corporation or A2 or better by Moody's Investor Service, Inc., or comparable
rating by another rating service acceptable to the Transmission Provider in its sole
discretion.
(c) The Transmission Customer has, in the Transmission Provider's sole
discretion, a satisfactory long-term payment history with any of the AEP Operating
Companies.
(d) The Transmission Provider receives a written guarantee from the
Transmission Customer's parent company (if applicable) that the parent will be
responsible unconditionally for all financial obligations associated with the transaction,
and the Transmission Customer's parent company qualifies as creditworthy pursuant to
one or more of the provisions of this section.
(e) The Transmission Customer is a borrower from the Rural Utilities Service
(RUS) and has a Times Interest Earned Ratio (TIER) of 1.05 or better and a Debt Service
Coverage Ratio (DSC) of 1.00 or better in the most recent calendar year, or an average
TIER of 1.05 or better and average DSC of 1.00 or better achieved in the two best years
out of the three most recent calendar years. This paragraph (e) shall apply to borrowers
from the RUS whether they take service under Parts II, III, or IV.
II. Procedures for Notification of Changes in Collateral Requirements - In the event
the Transmission Provider determines that there has been a change in the transmission
customer’s creditworthiness, the Transmission Provider will provide such customer thirty
(30) days notice to provide any additional requirement, collateral, or security.
III. Upon request, the Transmission Customer will be provided a written explanation
for any change in credit levels or collateral requirements. The Transmission Customer
may contest determinations of credit levels or collateral requirements or ost additional
collateral, including any non-creditworthy determination, provided that such contest is
provided in writing to the Transmission Provider within five (5) business days of such
credit level or collateral requirement determination.
ATTACHMENT O Appendix 9C1 Transmission Loading Relief Procedure-Eastern I Transmission Loading Relief Procedure-Eastern Interconnection (For implementation February 15, 2000)
Version 2
Appendix Subsections
A. General Requirements
B. Transmission Loading Relief (TLR) Levels
C. Interchange Transaction Curtailment Order
D. Transaction Management and Curtailment Process
E. Principles for Mitigating Constraints On and Off the Contract Path
F. Transaction Contribution Factor Calculation
G. Transaction Curtailment Formula
H. NERC Transmission Loading Relief Procedure Event Log
Introduction
The NERC Transmission Loading Relief (TLR) Procedure is an EASTERN
INTERCONNECTION-wide procedure to allow the SECURITY COORDINATORS to:
1. Respect TRANSMISSION SERVICE reservation priorities, and
2. Mitigate potential or actual OPERATING SECURITY LIMIT violations.
1 Transmission Provider Obligations NERC recognizes that TRANSMISSION PROVIDERS are subject to obligations
under FERC-approved tariffs or other agreements, and nothing in these procedures shall
be interpreted as changing those obligations. This Appendix uses the term “transmission
reservation” to mean transmission arranged under the FERC pro forma tariff as well as
under other transmission agreements.
2 Relationship between TLR Procedure and FERC pro forma Tariff The TLR Procedure has been incorporated into the transmission tariff of many
TRANSMISSION PROVIDERS, and is on file with the Federal Energy Regulatory
Commission. The TLR Procedure follows the curtailment provisions of the pro forma
tariff with regards to Non-firm and Firm Point-to-Point Transmission Service, and
Network Integration Transmission Service.
The pro forma tariff’s curtailment provision addresses the curtailment of the
transmission service over the constrained facilities, not curtailment of the generation
product being sold via that service. The tariff does not consider the effect of the
curtailment on the load-serving entity; instead, it considers the obligations of the
TRANSMISSION PROVIDER(S) in providing or curtailing the Transmission Service.
The NERC TLR Procedure translates the curtailment of the Transmission Service into a
curtailment of the actual MW flow over the constraint.
Regarding the curtailment of transmission use by Firm Point-to-Point
Transmission Service, the TLR Procedure follows the Federal Energy Regulatory
Commission’s pro forma tariff that TRANSMISSION PROVIDERS are not obligated to
redispatch their own resources to maintain TRANSACTIONS using Firm Point-to-Point
Transmission Service before they are curtailed on a pro-rata basis with transmission use
for Network Integration Transmission Service and Native Load.
The TLR Procedure includes the Transaction Contribution Factor (TCF), which
calculates the portion of the CONSTRAINED FACILITY’S loading due to Firm Point-
to-Point Transmission Service. This is one part of the calculation that the Transmission
Provider must perform to ensure that this curtailment is comparable and non-
discriminatory with the Transmission Provider’s curtailment of Network Integration
Transmission Service and Transmission Service for Native Load. (See Section F,
“Transaction Contribution Factor Calculation”)
Unless explained otherwise, “curtailment” refers to those INTERCHANGE
TRANSACTIONS with a 5% or greater DISTRIBUTION FACTOR on the
CONSTRAINED FACILITY.
SecureSystem TLR Level Security Coordinator Action Comments
1Notify Security Coordinators of potential Operating Security Limit violations
2Hold Interchange Transactions at current levels to prevent Operating Security Limit violations
Of those transactions with a 5% or greater impact on the constrained facility, only those under existing Transmission Service reservations will be allowed to continue, and only to the level existing at the time of the hold.
3aCurtail Transactions using Non-firm Point-to-Point Transmission Service to allow Transactions using higher priority Point-to-Point Transmission Service
Curtailment follows Transmission Service priorities.
Security LimitViolation
TLR Level Security Coordinator Action Comments 3bCurtail Transactions using Non-
firm Point-to-Point Transmission Service to mitigate Operating Security Limit Violation
Curtailment follows Transmission Service priorities.
4Reconfigure transmission system to allow Transactions using Firm Point-to-Point Transmission Service to continue
There may or may not be an Operating Security Limit violation.
SecureSystem TLR Level Security Coordinator Action Comments
5aCurtail Transactions (pro rata) using Firm Point-to-Point Transmission Service to allow new Transactions using Firm Point-to-Point Transmission Service to begin (pro rata).
Attempts to accommodate all Transactions using Firm Point-to-Point Transmission Service, though at a reduced (“pro rata”) level. Pro forma tariff also requires curtailment on pro rata basis with Network Integration Transmission Service and Native Load.
Security LimitViolation TLR Level Security Coordinator Action Comments
5bA. Curtail Transactions using Firm Point-to-Point Transmission Service to mitigate Operating Security Limit Violation
B. Pro forma tariff requires curtailment on pro rata basis with Network Integration Transmission Service and Native Load.
6C. Emergency Action Could include demand-side management, redispatch, voltage reductions, interruptible and firm load shedding
SecureSystem TLR Level Security Coordinator Action Comments
0D. TLR Concluded Restore transactions
3 Posting TLR Events When the Security Coordinator initiates the TLR Procedure, he will notify all
other Security Coordinators via the SCIS. Furthermore, the Interchange Distribution
Calculator will automatically post the TLR Level on the NERC TLR Status web page.
1.1.1 Notification – TLR Level 1
1.1.2 This Level is an alert to inform the marketplace and other Security
Coordinators that curtailments are likely to occur.
1.1.3 Hold – TLR Level 2
If an OPERATING SECURITY LIMIT violation is imminent, the SECURITY
COORDINATOR shall direct his CONTROL AREAS to maintain INTERCHANGE
TRANSACTIONS such that, of those transactions with a 5% or greater impact on the
constrained facility, only those under existing Transmission Service reservations will be
allowed to continue, and only to the level existing at the time of the hold. During TLR
Level 2, the SECURITY COORDINATOR will allow existing INTERCHANGE
TRANSACTIONS to increase, or new INTERCHANGE TRANSACTIONS to begin, if
they help mitigate the CONSTRAINT.
TLR Level 2 is a transient state, which requires a quick decision to proceed to
higher TLR Levels (3 and above) to allow INTERCHANGE TRANSACTIONS to be
implemented according to their transmission reservation priority. The time for being in
TLR Level 2 should be no more than 30 minutes, with the understanding that there may
be circumstances where this time may be exceeded. If the time in TLR Level 2a exceeds
30 minutes, the Security Coordinator must document this action on the TLR Log. When
faced with a new INTERCHANGE TRANSACTION using higher priority Point-to-Point
Transmission Service, the SECURITY COORDINATOR must immediately proceed to
TLR Level 3a to curtail those INTERCHANGE TRANSACTIONS using lower priority
Point-to-Point Transmission Service. He must give preference to those INTERCHANGE
TRANSACTIONS using Firm Point-to-Point Transmission Service, followed by those
using higher priority Nonfirm Point-to-Point Transmission Service. The SECURITY
COORDINATORS shall monitor and coordinate the timing of the curtailment and
reallocation process.
1.1.4 Reserved
1.1.5 Curtailing – TLR Levels 3a, 3b, 5a, 5b
Curtailments are required for two reasons: 1) to allow an INTERCHANGE
TRANSACTION using a higher priority Transmission Service to begin when it would
otherwise cause an OPERATING SECURITY LIMIT Violation (TLR Level 3a, and 5a);
and 2) to mitigate an imminent or existing OPERATING SECURITY LIMIT Violation
(TLR Level 3b and 5b). 1
[Note 1: This includes mitigation of contingency overloads.]
Should curtailment become necessary to mitigate a potential or actual
OPERATING SECURITY
LIMIT violation, all INTERCHANGE TRANSACTIONS whose Transfer
Distribution Factor (TDF) across the specific CONSTRAINED FACILITY is equal to or
greater than 5% shall be curtailed whenever practicable on a proportional basis and
according to these Procedures as explained in Section G, “Transaction Curtailment
Formula.” The order of INTERCHANGE TRANSACTION curtailment is explained in
Section C., “Interchange Transaction Curtailment Order.”
These curtailments will remain in effect until such time as the CONSTRAINT has
been mitigated, allowing the INTERCHANGE TRANSACTIONS to be restored.
1.1.6 Reserved
1.1.7 Reconfiguration – TLR Level 4
Before the SECURITY COORDINATOR orders curtailment of INTERCHANGE
TRANSACTIONS using Firm Point-to-Point TRANSMISSION SERVICE (TLR Level
5a or 5b), he will request the TRANSMISSION PROVIDERS in his SECURITY AREA
to attempt to reconfigure their transmission systems to allow the INTERCHANGE
TRANSACTIONS to continue. Transmission reconfiguration may be implemented as
long as it does not jeopardize the operating security of the INTERCONNECTION.
1.1.8 Reserved
1.1.9 Emergency Procedures – TLR Level 6
If the SECURITY COORDINATOR is unable to mitigate the CONSTRAINT
through the use of TLR Levels 3, 4, or 5, then he has the authority to immediately direct
the CONTROL AREAS to take actions such as redispatch generation, reconfigure
transmission, or reduce load to mitigate the critical condition until INTERCHANGE
TRANSACTIONS can be reduced utilizing the TLR Interchange Transaction
Curtailment Order, or other methods, to return the system to a reliable state. All
CONTROL AREAS shall comply with all requests from their SECURITY
COORDINATOR. However, the CONTROL AREA operator should immediately notify
his SECURITY COORDINATOR if the SECURITY COORDINATOR’S request is
unclear or would seem to cause an operating problem.
1.1.10 Reserved
1.1.11 Return to Normal Operations – TLR Level 0
The SECURITY COORDINATOR that is experiencing the CONSTRAINT
within its SECURITY AREA shall notify all SECURITY COORDINATORS via the
SCIS when the adverse conditions are mitigated and the system is in a “normal” state.
4 Considerations for Constraints On and Off the Contract Path 1.1.12 Interchange Transaction Priority ON the Contract Path
If the CONSTRAINED FACILITY is on the contract path, the curtailment
priority will be equal to the TRANSMISSION SERVICE priority of the link on which the
CONSTRAINED FACILITY is located. [Section E., “Principles for Mitigating
Constraints On and Off the Contract Path”]
1.1.13 Interchange Transaction Priority OFF the Contract Path
If the CONSTRAINED FACILITY is not on the contract path of the
INTERCHANGE TRANSACTION, the curtailment priority will be equal to the lowest
Transmission Service priority of the links on the contract path. (This means that an
INTERCHANGE TRANSACTION using Firm Point-to-Point Transmission Service on
all contract path links is considered a “firm” INTERCHANGE TRANSACTION even if
the CONSTRAINED FACILITY is off the contract path.)
5 Redispatch and Other Congestion Management Options Some TRANSMISSION PROVIDERS offer redispatch or other congestion
management options that allow a Transmission Customer to mitigate the effect of its
INTERCHANGE TRANSACTION on the CONSTRAINED FACILITY. If the
Transmission Customer elects to use such an option, the SECURITY COORDINATOR
must treat the INTERCHANGE TRANSACTION accordingly in the curtailment scheme.
(Note: “Local” congestion management procedures require approval by NERC if they are
to be used in lieu of the TLR Procedure prescription. See Policy 9.C. Requirement
3.2.1.1.)
A. General Requirements
1 Initiation only by Security Coordinator. The NERC Transmission Loading Relief Procedure may be initiated only by a
SECURITY COORDINATOR at 1) the SECURITY COORDINATOR’S own request, or
2) upon the request of a Transmission Provider or CONTROL AREA.
2 Mitigating transmission constraints. The TLR Procedure may be used to mitigate potential or actual OPERATING
SECURITY LIMIT violations on any transmission facility modeled in the
INTERCHANGE DISTRIBUTION CALCULATOR. [See also Section 6.1, “Interchange
Transactions not in the IDC.]
2.1 Requesting relief on tie facilities. Any TRANSMISSION PROVIDER or CONTROL AREA who operates the tie
facility may request relief from his SECURITY COORDINATOR.
2.1.1 INTERCHANGE TRANSACTION priority on tie facilities. The priority of the INTERCHANGE TRANSACTION(S) to be curtailed is
determined by the Transmission Service reserved on the limiting Transmission Provider’s
system who requested the relief.
3 Order of TLR Levels and taking emergency action. The SECURITY COORDINATOR may not necessarily follow the TLR Levels in
their numerical order (See Section B, “TLR Levels”). Furthermore, if a SECURITY
COORDINATOR deems that a transmission loading condition could jeopardize bulk
system reliability, the SECURITY COORDINATOR has the authority to enter TLR
Level 6 directly, and immediately direct the CONTROL AREAS to take such actions as
redispatch generation, or reconfigure transmission, or reduce load to mitigate the critical
condition until INTERCHANGE TRANSACTIONS can be reduced utilizing the TLR
Transaction Curtailment Procedures, or other methods, to return the system to a secure
state.
4 Notification of TLR Procedure implementation. The SECURITY COORDINATOR initiating the use of the TLR Procedure must
notify other SECURITY COORDINATORS and TRANSMISSION PROVIDERS, and
must post the initiation and progress of the TLR event on the NERC TLR Status web
page.
4.1 Notifying other Security Coordinators. The SECURITY COORDINATOR initiating the TLR Procedure shall inform all
other SECURITY COORDINATORS via the Security Coordinator Information System
(SCIS) that the TLR Procedure has been implemented.
4.1.1 Actions expected. The SECURITY COORDINATOR initiating the TLR Procedure shall indicate
the actions expected to be taken by other SECURITY COORDINATORS. [See also:
Policy 3B and 3D for CONTROL AREA Requirements during curtailments.]
4.2 Notifying TRANSMISSION PROVIDERS and CONTROL AREAS.
SECURITY COORDINATOR must keep the TRANSMISSION PROVIDERS
and CONTROL AREAS in his SECURITY AREA informed when entering and leaving
any TLR level.
4.3 Notifying Control Areas. The SECURITY COORDINATOR for the SINK CONTROL AREA is
responsible for directing that CONTROL AREA to curtail the INTERCHANGE
TRANSACTIONS as specified by the SECURITY COORDINATOR implementing the
TLR Procedure. [See Policy 3.D. for Control Area curtailment notification details.]
4.3.1 Notification order. Within a Transmission Service priority level, the SINK CONTROL AREAS
whose INTERCHANGE TRANSACTIONS have the largest impact on the
CONSTRAINED FACILITIES shall be notified first if practicable.
4.4 Updates. At least once each hour, or when conditions change, the SECURITY
COORDINATOR implementing the TLR Procedure shall update all other SECURITY
COORDINATORS (via the SCIS), as well as the affected TRANSMISSION
PROVIDERS and CONTROL AREAS.
5 Obligations. All SECURITY COORDINATORS must comply with the request of the
SECURITY COORDINATOR who initiated the TLR Procedure, unless the initiating
SECURITY COORDINATOR agrees otherwise.
5.1 Use of TLR Procedure with local procedures. A SECURITY COORDINATOR may implement a local transmission loading
relief or congestion management procedure simultaneously with an
INTERCONNECTION-wide procedure. However, he is obligated to follow the
curtailments as directed by the INTERCONNECTION-wide procedure. If the
SECURITY COORDINATOR desires to use a local procedure as a substitute for
curtailments as directed by the INTERCONNECTION-wide procedure, he may do so
only if such use is approved by the NERC Security Coordinator Subcommittee and
Operating Committee. 2
[Note 2: Examples would be 1) a local procedure that curtails INTERCHANGE
TRANSACTIONS in a different order or ratio than the INTERCONNECTION-wide
procedure, or 2) a local redispatch procedure.]
6 Consideration of Interchange Transactions. The administration of the TLR Procedure is guided by information obtained from
the Interchange Distribution Calculator (IDC).
6.1 Interchange Transactions not in the IDC. SECURITY COORDINATORS shall also treat known INTERCHANGE
TRANSACTIONS that may not appear in the IDC in accordance with the procedures in
this document.
6.2 Transmission elements not in IDC. When a SECURITY COORDINATOR is faced with an overload on a
transmission element that is not modeled in the IDC, the SECURITY COORDINATOR
shall use the best information available to curtail INTERCHANGE TRANSACTIONS in
order to operate the system in a reliable manner. The SECURITY COORDINATOR shall
use his best efforts to ensure that INTERCHANGE TRANSACTIONS with a
TRANSFER DISTRIBUTION FACTOR of less than 5% on the transmission element not
modeled in the IDC are not curtailed.
6.3 Questionable IDC results. Any SECURITY COORDINATOR (or TRANSMISSION PROVIDER through
his SECURITY COORDINATOR) who believes the curtailment list from the IDC for a
particular TLR event is incorrect shall use his best efforts to perform those adjustments
necessary to bring the curtailment list into conformance with the principles of this
Procedure. Causes of questionable IDC results may include:
• Missing INTERCHANGE TRANSACTIONS that are known to contribute
to the CONSTRAINT.
• Significant change in transmission system topology
• TDF matrix error.
Impacts of questionable IDC results may include:
• Curtailment that would have no effect on, or aggravate the constraint.
• Curtailment that would initiate a constraint elsewhere.
If other SECURITY COORDINATORS are involved in the TLR event, there
must be an agreement among those SECURITY COORDINATORS on the adjustments
to the curtailment list.
6.4 Curtailment that would cause a constraint elsewhere.
If the SECURITY COORDINATOR is aware that an INTERCHANGE
TRANSACTION curtailment directed by the IDC would cause a constraint to occur
elsewhere, after consulting with other SECURITY COORDINATORS, he may exempt
that INTERCHANGE TRANSACTION from curtailment.
6.5 Redispatch options. The SECURITY COORDINATOR shall ensure that INTERCHANGE
TRANSACTIONS that are linked to redispatch options are protected from curtailment in
accordance with the redispatch provisions. [See also: Policy 9C. Req. 3.2.1.1 on use of
local procedures.]
7 IDC updates. Any INTERCHANGE TRANSACTION adjustments or curtailments that result
from using this Procedure must be entered into the IDC as explained in Policy 9.C.
Requirement 1.1.
8 Logging. The SECURITY COORDINATOR shall complete the NERC Transmission
Loading Relief Procedure Log (Section H) whenever he invokes TLR Level 2 or above,
and send a copy of the log via e-mail to the NERC staff within two business days of the
TLR event. The staff will post these logs on the NERC web site upon receipt.
9 TLR Event Review. The SECURITY COORDINATOR shall provide information regarding the TLR
event to the NERC Market Interface Committee and Security Coordinator Subcommittee
in accordance with TLR review processes established by NERC as required. The Market
Interface Committee may conduct reviews of certain TLR events based on the size and
number of INTERCHANGE TRANSACTIONS that are affected, the frequency that the
TLR Procedure is called for a particular CONSTRAINED FACILITY, or other factors.
The Security Coordinator Subcommittee will conduct reviews to ensure proper
implementation and for “lessons learned.”
B. Transmission Loading Relief (TLR) Levels Introduction
This section describes the various levels of the TLR Procedure. The description of
each level begins with the circumstances that define the TLR Level, followed by the
procedures to be followed.
The decision that a SECURITY COORDINATOR makes in selecting a particular
TLR Level often depends on the transmission loading condition and whether the
INTERCHANGE TRANSACTION is using Non-firm Point-to-Point Transmission
Service or Firm Point-to-Point Transmission Service. There are further considerations
that depend on whether the Constrained Facility is on or off the contract path. (See
Section A.6.5, “Interchange Transactions using Firm Point-to-Point Transmission
Service”, and Section E., “Principles for Mitigating Constraints On and Off the Contract
Path”) It is important to note, as explained in the Introduction, that an INTERCHANGE
TRANSACTION using Firm Point-to-Point Transmission Service on all contract path
links is considered a “firm” INTERCHANGE TRANSACTION even if the
CONSTRAINED FACILITY is off the contract path.
1 TLR Levels
1 Level 1 Notify Security Coordinators of potential Operating Security Limit Violations.
1.1 Circumstances: • The transmission system is secure.
• The SECURITY COORDINATOR foresees a transmission or generation
contingency or other operating problem within his SECURITY AREA that could cause
one or more transmission facilities to approach or exceed their OPERATING
SECURITY LIMIT.
1.2 Notification procedures. The SECURITY COORDINATOR shall notify all SECURITY
COORDINATORS as soon as the condition is foreseen. All affected SECURITY
COORDINATORS shall check to ensure that INTERCHANGE TRANSACTIONS are
posted in the INTERCHANGE DISTRIBUTION CALCULATOR.
2 Level 2 Hold transfers at present level to prevent Operating Security Limit Violations
2.1 Circumstances for entering this level: • The transmission system is secure,
• One or more transmission facilities are expected to approach, or are
approaching, or are at their OPERATING SECURITY LIMIT.
2.2 Holding procedures.
The SECURITY COORDINATOR may hold the implementation of any
additional INTERCHANGE TRANSACTIONS such that, of those transactions with a
5% or greater impact on the constrained facility, only those under existing Transmission
Service reservations will be allowed to continue, and only to the level existing at the time
of the hold. However, the SECURITY COORDINATOR should allow additional
INTERCHANGE TRANSACTIONS that flow across the CONSTRAINED FACILITY if
their flow reduces the loading on the Constrained Facility or has a Transfer Distribution
Factor less than 5%.
2.2.1 TLR Level 2 Is a transient state, which requires a quick decision to proceed to higher TLR
Levels (3 and above) to allow INTERCHANGE TRANSACTIONS to be implemented
according to their transmission reservation priority. The time for being in TLR Level 2
should be no more than 30 minutes, with the understanding that there may be
circumstances where this time may be exceeded. If the time in TLR Level 2a exceeds 30
minutes, the Security Coordinator must document this action on the TLR Log.
3 Level 3a Curtail INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point
Transmission Service to allow INTERCHANGE TRANSACTIONS using higher priority
Point-to-Point Transmission Service.
3.1 Circumstances for entering this level: • The transmission system is secure
• One or more transmission facilities are expected to approach, or are
approaching, or are at their OPERATING SECURITY LIMIT
• All new INTERCHANGE TRANSACTION requests with a 5% or greater
TDF over the CONSTRAINED FACILITY are being held.
• The Transmission Provider has previously approved a higher priority
Point-to-Point Transmission Service reservation over which a Transmission Customer
wishes to begin an INTERCHANGE TRANSACTION.
3.2 Curtailment procedures to allow Interchange Transactions usi Curtailment procedures to allow Interchange Transactions using higher priority Point-to-
Point Transmission Service
At the request of the SINK CONTROL AREA via its SECURITY
COORDINATOR, the SECURITY COORDINATOR with the constraint shall give
preference to those to INTERCHANGE TRANSACTIONS using Firm Point-to-Point
Transmission Service, followed by those using higher priority Nonfirm Point-to-Point
Transmission Service as specified in Section C. “Interchange Transaction Curtailment
Order.”
4 Level 3b Curtail INTERCHANGE TRANSACTIONS using Non-Firm Transmission
Service Arrangements to mitigate an OPERATING SECURITY LIMIT Violation.
4.1 Circumstances for entering this level: • One or more Transmission Facilities are operating above their
OPERATING SECURITY LIMIT, or
• Such operation is imminent and it is expected that facilities will exceed
their security limit unless corrective action is taken, or
• One or more Transmission Facilities will exceed their OPERATING
SECURITY LIMIT upon the removal from service of a generating unit or another
transmission facility
4.2 Holding new INTERCHANGE TRANSACTIONS. The Security Coordinator shall hold all new INTERCHANGE TRANSACTIONS
with a 5% or greater TDF over the CONSTRAINED FACILITY during the period of the
OPERATING SECURITY LIMIT Violation.
4.3 Curtailment procedures to mitigate an OPERATING SECURIT Curtailment procedures to mitigate an OPERATING SECURITY LIMIT The SECURITY COORDINATOR shall curtail INTERCHANGE
TRANSACTIONS using Non-firm Point-to-Point Transmission Service with a 5% or
greater TDF over the CONSTRAINTS as specified in Section C. “Interchange
Transaction Curtailment Order.”
5 Level 4 Reconfigure Transmission
5.1 Circumstances for entering this level: • One or more Transmission Facilities are above their OPERATING
SECURITY LIMIT, or
• Such operation is imminent and it is expected that facilities will exceed
their security limit unless corrective action is taken
• All INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point
Transmission Service have been curtailed.
5.2 Reconfiguration procedures. Following the curtailment of all INTERCHANGE TRANSACTIONS using Non-
firm Point-to-Point Transmission Service in Level 3b above that impact the
CONSTRAINED FACILITIES, if an OPERATING SECURITY LIMIT violation is
imminent or occurring, the SECURITY COORDINATOR(S) shall request that the
affected TRANSMISSION PROVIDERS reconfigure transmission on their system, or
arrange for reconfiguration on other transmission systems, to mitigate the constraint.
Specific details are explained in Section E., “Principles for Mitigating Constraints On and
Off the Contract Path.”
6 Level 5a Curtail Interchange Transactions using Firm Point-to-Point Transmission Service
on a pro rata basis to allow additional Interchange Transactions using Firm Point-to-Point
Transmission Service.
6.1 Circumstances: • The transmission system is secure
• One or more transmission facilities are at their OPERATING SECURITY
LIMIT
• All INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point
Transmission Service with a 5% or greater TDF over the CONSTRAINED FACILITIES
have been curtailed.
• The TRANSMISSION PROVIDER has been requested to begin an
INTERCHANGE TRANSACTION using previously arranged Firm Transmission
Service that would result in an OPERATING SECURITY LIMIT Violation.
• No further transmission reconfiguration is possible or effective.
6.2 Curtailment Procedures. Curtailment of INTERCHANGE TRANSACTIONS using Firm Point-to-Point
Transmission Service is a three-step process as follows:
6.2.1 Step 1 Identify available redispatch options. The SECURITY COORDINATOR shall
assist the Transmission Provider(s) in identifying whatever redispatch options are
available to the Transmission Customer that will mitigate the loading on the
CONSTRAINED FACILITIES. If such redispatch options are deemed insufficient to
mitigate loading on the CONSTRAINED FACILITIES, the SECURITY
COORDINATOR shall proceed to implement these options while proceeding to Steps 2
and 3 below.
6.2.2 Step 2 Calculate percent of the overload on the CONSTRAINED FACILITY due to
Interchange Transactions using Firm Point-to-Point Transmission Service with a 5% or
greater TDF. This is the MW that can be curtailed using the TLR Procedure, and this
value shall be communicated to the Transmission Provider with the constraint. This is
described in Section F, “Transaction Contribution Factor Calculation.” The Security
Coordinator shall assist the Transmission Provider to calculate the percent of the overload
on the CONSTRAINED FACILITIES caused by the TRANSMISSION PROVIDER’S
Network Integration Transmission Service and Native Load as required by the
TRANSMISSION PROVIDER’S filed tariff.
6.2.3 Step 3 Curtail Interchange Transactions using Firm Transmission Service. The
SECURITY COORDINATOR shall curtail on a pro-rata basis (based on the MW level of
the MW total to all such INTERCHANGE TRANSACTIONS), those INTERCHANGE
TRANSACTIONS as calculated in Section 7.2.2 over the CONSTRAINED
FACILITIES. The SECURITY COORDINATOR shall assist the Transmission Provider
in curtailing Transmission Service to Network Integration Transmission Service
customers and Native Load if such curtailments are required by the Transmission
Provider’s tariff. Available redispatch options will continue to be implemented.
7 Level 5b Curtail INTERCHANGE TRANSACTIONS using Firm Point-to-Point
Transmission Service to mitigate an OPERATING SECURITY LIMIT Violation.
7.1 Circumstances: • One or more Transmission Facilities are operating above their
OPERATING SECURITY LIMIT, or
• Such operation is imminent, or
• One or more Transmission Facilities will exceed their OPERATING
SECURITY LIMIT upon the removal from service of a generating unit or another
transmission facility.
• All INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point
Transmission Service with a 5% or greater TDF over the CONSTRAINED FACILITIES
have been curtailed.
• No further transmission reconfiguration is possible or effective.
7.2 Curtailment of INTERCHANGE TRANSACTIONS Using Firm Point-to-Point Transmission Service is a three-step process as follows:
7.2.1 Step 1 Identify available redispatch options. The SECURITY COORDINATOR shall
assist the Transmission Provider(s) in identifying whatever redispatch options are
available to the Transmission Customer that will mitigate the loading on the
CONSTRAINED FACILITIES. If such redispatch options are deemed insufficient to
mitigate loading on the CONSTRAINED FACILITIES, the SECURITY
COORDINATOR shall proceed to implement these options while proceeding to Steps 2
and 3 below.
7.2.2 Step 2 Calculate Transaction Contribution Factor. The SECURITY COORDINATOR
shall calculate the percent of the overload on the CONSTRAINED FACILITY due to
Interchange Transactions using Firm Point-to-Point Transmission Service with a 5% or
greater TDF. This is the MW that can be curtailed using the TLR Procedure, and this
value shall be communicated to the Transmission Provider with the constraint. This is
described in Section F, “Transaction Contribution Factor Calculation.” If required by the
TRANSMISSION PROVIDERS’ tariffs, the Security Coordinator shall assist the
Transmission Provider calculate the percentage of the overload on the CONSTRAINED
FACILITIES caused by the Transmission Provider’s Network Integration Transmission
Service and Native Load.
7.2.3 Step 3 Curtailment of Interchange Transactions using Firm Transmission Service. At this
point, the SECURITY COORDINATOR shall begin the process of curtailing
INTERCHANGE TRANSACTIONS as calculated in Section 7.2.2 over the
CONSTRAINED FACILITIES using Firm Point-to-Point Transmission Service until the
OPERATING SECURITY LIMIT violation has been mitigated. The SECURITY
COORDINATOR shall assist the Transmission Provider in curtailing Transmission
Service to Network Integration Transmission Service customers and Native Load if such
curtailments are required by the TRANSMISSION PROVIDERS’ tariff. Available
redispatch options will continue to be implemented.
8 Level 6 Emergency Procedures
8.1 Circumstances: • One or more Transmission Facilities are above their OPERATING
SECURITY LIMIT.
• One or more Transmission Facilities will exceed their OPERATING
SECURITY LIMIT upon the removal from service of a generating unit or another
transmission facility.
8.2 Implementing emergency procedures.
If the transmission loading condition is deemed critical to bulk system reliability
by a SECURITY COORDINATOR, the SECURITY COORDINATOR has the authority
to immediately direct the CONTROL AREAS in his SECURITY AREA to redispatch
generation, or reconfigure transmission, or reduce load to mitigate the critical condition
until INTERCHANGE TRANSACTIONS can be reduced utilizing the TLR Procedures
or other procedures to return the system to a secure state. All CONTROL AREAS shall
comply with all requests from their SECURITY COORDINATOR.
9 Level 0 TLR concluded
9.1 Interchange TRANSACTION restoration and notification pr Interchange TRANSACTION restoration and notification procedures. The SECURITY COORDINATOR initiating the TLR Procedure shall notify all
SECURITY COORDINATORS within the INTERCONNECTION via the SCIS when
the OPERATING SECURITY LIMIT violations are mitigated and the system is in a
“normal” state, allowing INTERCHANGE TRANSACTIONS to be reestablished at his
discretion. Those with the highest transmission priorities shall be reestablished first if
possible.
C. Interchange Transaction Curtailment Order Curtailment of Interchange Transactions Using Non-firm Transmission Service
The SECURITY COORDINATOR will direct the curtailment of
INTERCHANGE TRANSACTIONS using Non-firm TRANSMISSION SERVICE and
whose TRANSFER DISTRIBUTION FACTOR (TDF) over the CONSTRAINED
FACILITIES is 5% or greater for the following TLR Levels:
1. TLR Level 3a.
Enable INTERCHANGE TRANSACTIONS using a higher Transmission
reservation priority to be implemented, or
2. TLR Level 3b.
Mitigate an OPERATING SECURITY LIMIT violation.
The INTERCHANGE TRANSACTION curtailment priority is determined by its
TRANSMISSION SERVICE reservation over the constrained facility(ies) as shown in
the box on the right:
The curtailment priority for INTERCHANGE TRANSACTIONS that do not have
a Transmission Service reservation over the constrained facility(ies) is the lowest priority
of the individual reserved transmission segments.
Curtailment of Interchange Transactions Using Firm Transmission Service
The SECURITY COORDINATOR will direct the curtailment of
INTERCHANGE TRANSACTIONS using Firm TRANSMISSION SERVICE and
whose TDF over the CONSTRAINED FACILITIES is 5% or greater for the following
TLR Levels:
1. TLR Level 5a. Enable additional INTERCHANGE TRANSACTIONS
using Firm Point-to-Point Transmission Service to be implemented after all
INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point Service have been
curtailed, or
2. TLR Level 5b. Mitigate an OPERATING SECURITY LIMIT violation
that remains after all INTERCHANGE TRANSACTIONS using Non-firm Transmission
Service has been curtailed under TLR Level 3b, and following attempts to reconfigure
transmission under TLR Level 4.
D. Transaction Management and Curtailment Process This flowchart depicts an overview of the Transaction Management and Curtailment process. Detailed decisions are not shown.
SystemSecure OSL Violation
M onitorSystem
Security Lim itViolat ion?
Potent ialSLV?
T LR 1
Requestfor T ransm iss ion
Service?
Accomm odate?
T LR 2 Hold
Request for Higher Priorit yService
T LR 3a Curtail Non-f irm Accomm odate?
T LR 4 Reconf igure
Accomm odate?
T LR 5a T CF
Curtail F irm
T LR 3b
Curtailm entM ethod:
Local
St illConstrained?
NERC T LR
IDC
Curtail Non-F irm Priorit ies 1-6
St illConstrained?
CanReconf igure?
T LR 4 Reconf igure
T LR 5b Calc T CF Curtail F irm
St illConstrained?
T akeEm ergency
Act ion
No
Yes
Yes
No
No
Yes
Yes
No
Yes
No
Yes
No
No
Yes
No
Yes
Yes
No
No
Yes
E. Principles for Mitigating Constraints On and Off the Contrac Principles for Mitigating Constraints On and Off the Contract Path
Introduction
Reserving transmission service for an INTERCHANGE TRANSACTION along a
“contract path” may not reflect the actual distribution of the power flows over the
transmission network from generation source to load sink. INTERCHANGE
TRANSACTIONS arranged over a contract path may, therefore, overload transmission
elements on other electrically parallel paths. The Security Coordinators must agree on
how the NERC Transmission Loading Relief Procedure will handle these INTERCHANGE
TRANSACTIONS to, first, ensure the operational security of the Interconnection and,
second, respect the obligations of the Transmission Providers tariffs.
The curtailment priority of an INTERCHANGE TRANSACTION depends on whether
the Constrained Facility is on or off the contract path, and, if on the contract path, the
Transmission Service of the link with the Constrained Facility.
The Security Coordinator must also consider 1) the tariff obligations of the
Transmission Provider with the Constrained Facility, 2) the Transmission Customer’s
redispatch or other congestion management arrangements, and 3) arrangements among
the Transmission Providers for handling certain Constraints. Refer to examples beginning
on page A9C1-Error! Reference source not found.Error! Reference source not
found.280.
Principles for Constraints ON the Contract Path
1. If the transmission link with the Constrained Facility is Non-firm Point-to-Point
Transmission Service, the entire INTERCHANGE TRANSACTION is considered non-
firm, even if other links in the contract path are firm. When the Constrained
Facility is on the contract path, the INTERCHANGE TRANSACTION takes on the
transmission service priority of the Transmission Service link with the
Constrained Facility regardless of the Transmission Service priority on the other
links along the contract path.
Discussion. The Transmission Provider simply has to call its Security
Coordinator, request the TLR Procedure be initiated, and allow the curtailments
of all INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point
Transmission Service with a 5% or greater TDF to progress until the relief is
realized. Firm Point-to-Point Transmission Service links elsewhere in the contract
path do not obligate Transmission Providers providing Non-firm Point-to-Point
Transmission Service to treat the transaction as firm. For curtailment purposes,
the INTERCHANGE TRANSACTION’S priority will be the priority of the
Transmission Service link with the Constrained Facility. (See Principle #2 below.)
2. If the transmission link with the Constrained Facility is Firm Point-to-Point
Transmission Service, the entire INTERCHANGE TRANSACTION is considered
firm, even if other links in the contract path are non-firm.
Discussion. The curtailment priority of an INTERCHANGE TRANSACTION on a
contract path link is not affected by the transmission service priorities arranged
with other links on the contract path. If the Constrained Facility is on a Firm
Point-to-Point Transmission Service contract path link, then the curtailment
priority of the INTERCHANGE TRANSACTION is considered firm regardless of the
transmission service arrangements elsewhere on the contract path. If the
Transmission Provider provides its services under the FERC pro forma tariff, it
may also be obligated to offer its Transmission Customer alternate receipt and
delivery points, thus allowing the Customer to curtail its Transmission Service
over the Constrained Facilities.
For Constraints OFF the Contract Path
3. If any of the transmission links on the contract path are Non-firm Point-to-Point
Transmission Service, the INTERCHANGE TRANSACTION is considered non-firm
by the system with the Constrained Facility that is not on the contract path, and
takes on the lowest transmission service priority of all Transmission Service links
along the contract path.
Discussion. An INTERCHANGE TRANSACTION arranged over a contract path
where one or more individual links consist of Non-firm Point-to-Point
Transmission Service is considered to be a non-firm INTERCHANGE
TRANSACTION for Constrained Facilities off the contract path. Sufficient
INTERCHANGE TRANSACTION with a 5% or greater TDF over the Constrained
Facility will be curtailed before any INTERCHANGE TRANSACTIONS using Firm
Point-to-Point Transmission Service are curtailed. The priority level for
curtailment purposes will be the lowest level of transmission service arranged for
on the contract path.
4. If all of the transmission links on the contract path with the Constrained Facility
are Firm Point-to-Point Transmission Service, then the INTERCHANGE
TRANSACTION is considered firm and will not be curtailed to relieve a Constraint
off the contract path until all non-firm INTERCHANGE TRANSACTIONS with a 5%
or greater TDF over the Constraint have been curtailed.
Discussion. If the entire contract path is Firm Point-to-Point Transmission
Service, then the TLR procedure will treat the INTERCHANGE TRANSACTION as
firm even for Constraints off the contract path and will not curtail that
INTERCHANGE TRANSACTION until all non-firm INTERCHANGE TRANSACTIONS
with a 5% or greater TDF have been curtailed. However, Transmission Providers
off the contract path are not obligated to reconfigure their transmission system or
provide other congestion management procedures unless special arrangements are
in place. Because the INTERCHANGE TRANSACTION is considered firm
“everywhere,” the Security Coordinator may attempt to arrange for Transmission
Providers or Control Areas to reconfigure transmission or provide other
congestion management options, even if they are off the contract path, to try to
avoid curtailing the INTERCHANGE TRANSACTION that is using the Firm Point-to-
Point Transmission Service.
Examples
This section explains, by example, the obligations of the Transmission Providers on and
off the contract path when calling for Transmission Loading Relief. (References to
Principles refer to Section E, “Principles for Mitigating Constraints On and Off the
Contract Path,” on the preceding pages.)
Scenario:
1. INTERCHANGE TRANSACTION arranged from system A to system D, and assumed to
have at least a 5% TDF across the Constraint(s).
2. Contract path is A-E-C-D (except as noted)
Locations 1 and 2 denote Constraints
Case 1:
E is a non-firm Monthly path, C is non-firm Hourly; E has CONSTRAINT at #2.
* E may call SECURITY COORDINATOR for TLR Procedure to relieve overload at
CONSTRAINT #2.
* INTERCHANGE TRANSACTION A-D may be curtailed by TLR action as though it was
being served by Non-firm Monthly Point-to-Point Transmission Service, even
though it was using Non-firm Hourly Point-to-Point TRANSMISSION SERVICE from
C. That is, it takes on the priority of the link with the CONSTRAINED FACILITY along
the contract path. (Principle 1).
Case 2: E is a non-firm hourly path, C is firm; E has Constraint at #2.
* Although C is providing Firm Service, the Constraint is not on C’s system, therefore
C is not obligated to treat the Interchange Transaction as though it was being served
by Firm Point-to-Point Transmission Service.
* E may call Security Coordinator for TLR Procedure to relieve overload at Constraint
#2.
* INTERCHANGE TRANSACTION A-D may be curtailed by TLR action as though it
was being served by Non-firm Hourly Point-to-Point Transmission Service, even
though it was using firm service from C. That is, when the constraint is on the
contract path, the Interchange Transaction takes on the priority of the link with the
Constrained Facility. (Principle 1).
Case 3:
E is a non-firm hourly path, C is firm, B has Constraint at #1.
* B may call Security Coordinator for TLR Procedure to relieve overload at Constraint
#1.
* INTERCHANGE TRANSACTION A-D may be curtailed by TLR action as though it was
being served by Non-firm Hourly Transmission Service, even if it was using firm
Transmission Service elsewhere on the path. When the constraint is off the contract
path, the Interchange Transaction takes on the lowest priority reserved on the contract
path. (Principle 3).
Case 4:
E is a firm path; A, D, and C are Non-firm; E has Constraint at #2.
* INTERCHANGE TRANSACTION A – D is considered Firm priority for curtailment
purposes.
* E may then call Security Coordinator for TLR, which would curtail all INTERCHANGE
TRANSACTIONS using Non-firm Point-to-Point Transmission Service first.
* E is obligated to reconfigure transmission to mitigate Constraint #2 in E before E may
curtail the INTERCHANGE TRANSACTION as ordered by the TLR. (Principle 2).
Case 5:
The entire path (A-E-C-D) is firm; E has Constraint at #2.
A B CD
E
F
1
2
Contract path
Firm
Firm
Firm
Firm
* INTERCHANGE TRANSACTION A – D is considered Firm priority for curtailment
purposes.
* E may call Security Coordinator for TLR, which would curtail all INTERCHANGE
TRANSACTIONS using Non-firm Point-to-Point Transmission Service first.
* E is obligated to curtail INTERCHANGE TRANSACTIONS using Non-firm Point-to-
Point Transmission Service, and then reconfigure transmission on its system, or, if
there is an agreement in place, arrange for reconfiguration or other congestion
management options on another system, to mitigate Constraint #2 in E before the firm
A-D transaction is curtailed. (Principle 2)
* A, C, D, may be requested by E to reconfigure transmission to mitigate Constraint #2
in E at E’s expense. (Principle 2).
Case 6: The entire path (A-E-C-D) is firm; B has
A B CD
E
F
1
2
Contract path
Firm
Firm
Firm
Firm
* INTERCHANGE TRANSACTION A - D is considered Firm priority for curtailment
purposes.
* B may call Security Coordinator for TLR Procedure for all non-firm
INTERCHANGE TRANSACTIONS that contribute to the overload at Constraint #1.
* Following the curtailment of all non-firm INTERCHANGE TRANSACTIONS, the
Security Coordinator(s) will determine which Control Area(s) will reconfigure their
transmission to mitigate constraint #1. (Principle 4)
* A-D transaction may be curtailed as a result. However, the A-D transaction is treated
as a firm INTERCHANGE TRANSACTION and will be curtailed only after non-
firm INTERCHANGE TRANSACTIONS. (Note: This means that the firm contract
path is respected by all parties, including those not on the contract path.) (Principle
4).
Case 7:
Two A-to-D transactions using A-B-C-D and A-E-C-D; A and B are non-firm;
B has Constraint at #1
B is not obligated to reconfigure transmission to mitigate Constraint at #1.
(Principle 1)
* B may call for TLR Procedure to relieve overload at Constraint #1.
* If both A – D Interchange Transactions have the same TDF (5% or greater) across
Constraint #1, then they both are subject to curtailment. However, INTERCHANGE
TRANSACTION A – D using the A-B-C-D path is assigned a higher priority (priority
NW on B), and would not be curtailed until after the Interchange Transaction using
the path A-E-C-D (priority NH on the contract path as observed by B who is off the
contract path).
F. Transaction Contribution Factor Calculation Introduction
This section is intended to explain how to calculate the flows over the
CONSTRAINED FACILITY due to TRANSACTIONS using Firm Point-to-Point
Transmission Service. It is not intended to specify how to calculate the effects of
Network Integration Transmission Service and service to Native Load, nor the calculation
of the effects of flows from INTERCHANGE TRANSACTIONS with less than 5%
TRANSFER DISTRIBUTION FACTOR.
There are two situations that may require the curtailment of INTERCHANGE
TRANSACTIONS using Firm Point-to-Point Transmission Service. In both situations, all
INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point Transmission
Service have been curtailed:
1. An INTERCHANGE TRANSACTION with Firm Point-to-Point Transmission
Service is scheduled to start, but doing so would cause an OPERATING
SECURITY LIMIT Violation, and there are no INTERCHANGE
TRANSACTIONS using Non-firm Point-to-Point Transmission Service that can
be curtailed to mitigate this potential overload. TLR Level 5a is declared to allow
additional Interchange Transactions using Firm Point-to-Point Transmission
Service to begin on a pro rata basis, with corresponding pro rata curtailments of
other Interchange Transactions using Firm Point-to-Point Transmission Service.
2. In the second case, an OPERATING SECURITY LIMIT Violation already exists,
and all INTERCHANGE TRANSACTIONS using Non-firm Point-to-Point
Transmission Service have been curtailed. TLR Level 5b is declared to curtail the
necessary Interchange Transactions using Firm Point-to-Point Transmission
Service to mitigate the Operating Security Limit.
In both cases, the Transmission Provider may be obligated to perform comparable
curtailments of its Network Integration Transmission Service and Native Load customers.
Therefore, the Transmission Provider needs to consider what percent of the overload on
the CONSTRAINED FACILITY is due to each of these types of Transmission Services.
Calculating Flows Due to Firm Point-to-Point Transmission Service
When entering TLR Level 5a or 5b, the Transmission Provider first provides the
SECURITY COORDINATOR with the total MW flow on the CONSTRAINED
FACILITY. The SECURITY COORDINATOR then interrogates the Interchange
Distribution Calculator to determine the total MW flow over the CONSTRAINED
FACILITY from INTERCHANGE TRANSACTIONS (inter-CONTROL AREA) using
Firm Point-to-Point Transmission Service. Next, the Transmission Provider adds the MW
flow over the CONSTRAINED FACILITY from intra-CONTROL AREA
TRANSACTIONS on its system using Firm Point-to-Point Transmission Service. The
sum of these two values is the Transaction Contribution due to Firm Point-to-Point
Transmission Service, or TCptp, that have a Distribution Factor greater than 5%.
Calculating the Transaction Contribution Factor for Firm Point-to-Point Transmission Service
Dividing the Transaction Contribution due to Firm Point-to-Point Transmission
Service by the total flow over the CONSTRAINED FACILITY yields the Transaction
Contribution Factor for Firm Point-to-Point Transmission Service, or TCFptp.
Calculating the Curtailment Ratios for all Firm Transmission Services
After considering the TCptp, the remaining flows over the CONSTRAINED
FACILITY must therefore be due to inter- and intra-CONTROL AREA generation-to-
load flows using Firm Network Integration Transmission Service and Native Load
Service, including parallel flows from other CONTROL AREAS, parallel flows due to
intra-CONTROL AREA TRANSACTIONS using Firm Point-to-Point Transmission
service on adjacent systems, as well as those INTERCHANGE TRANSACTIONS below
the 5% Distribution Factor threshold that were not curtailed, plus other flows from
unknown sources. The example that follows illustrates these various component flows
over the CONSTRAINED FACILITY.
It is up to the Transmission Provider to allocate the curtailment of these remaining
flows among its Transmission Customers, which will include adjustments to its TCFptp
factor, according to its transmission tariff or Regional procedures. Refer to the example
below.
Example
* Facility XYZ has an OPERATING SECURITY LIMIT of 900 MW.
* Its current metered flow is 1,100 MW, or 200 MW over the OPERATING
SECURITY LIMIT.
* All non-firm transactions eligible for curtailment have been curtailed.
Remaining flows over the CONSTRAINED FACILITY are:
* 700 MW due to parallel flows from Firm Network Integration Transmission and
Native Load Service in Control Areas A, B, and C.
* 50 MW due to Interchange Transactions using non-Firm Transmission Service
with a distribution factor below the 5% curtailment threshold.
* 50 MW due to unknown reasons.
The IDC shows that the contribution from the Firm and remaining Non-Firm
Transactions contributing to the loading on this flowgate for hour ending 1600 (starting at
1500 hours) is 300 MW.
G. Transaction Curtailment Formula Example
This example is based on the premise that a transaction should be curtailed in proportion
to its TDF on the CONSTRAINTS. Its effect on the interface is a combination of its size
in MW and its effect based on its distribution factor.
1.1.14 Column 1.1.15 Description
1. Initial Transaction
INTERCHANGE TRANSACTION before the TLR Procedure is implemented.
2. Distribution Factor
Proportional effect of the Transaction over the constrained interface due to the physical arrangement and impedance of the transmission
system.
3. Impact on the Interface
Result of multiplying the Transaction MW by the distribution factor. This yields the MW that flow through the constrained interface from the Transaction. Performing this calculation for eachTransaction yields the total flow through the constrained interface from all the INTERCHANGE TRANSACTIONS. In this case, 760 MW.
4. Impact Weighting Factor
Normalization of the total of the Distribution Factorsin Column 2. Calculated by dividing the Distribution Factor for each Transaction by the total of the Distribution Factors.
5. Weighted Maximum Interface Reduction
Multiplying the Impact on the Interface from eachTransaction by its Impact Weighting Factor yields a newproportion that is a combination of the MW Impact on the Interface and the Distribution Factor.
6. Interface Reduction
Multiplying the amount we need to reduce the flow over the constrained interface (280 MW) by the normalization of the Weighted Maximum Interface
Reduction yields the actual MW reduction that each Transaction must contribute to achieve the total reduction.
7. Transaction Reduction
Now we have to divide by the Distribution Factor to see how much the Transaction must be reduced to yield the result we calculated in Column 7. Note that the reductions for the first two INTERCHANGE TRANSACTIONS (A-D (1) and A-D (2) are in proportion to their size since their distribution factors are equal.
8. New Transaction Amount
Subtracting the Transaction Reduction from the Initial Transaction yields the New Transaction Amount.
9. Adjusted Impact on Interface
A check to ensure the new constrained interface MW flow has been reduced to the target amount.
Allocation Based on Weighted Impact
H. NERC Transmission Loading Relief Procedure Log
ATTACHMENT P Reserved for Future Use
ATTACHMENT Q Reserved for Future Use
ATTACHMENT R (Note 1) Transmission Planning Process Note 1: Attachment R to the AEP OATT is the equivalent of the Attachment K required by FERC Order 890.
I Introduction This document was developed by American Electric Power Service Corporation
on behalf of Appalachian Power Company, Columbus Southern Power Company,
Indiana Michigan Power Company, Kentucky Power Company, Kingsport Power
Company, Ohio Power Company, and Wheeling Power Company ( “The AEP East
Zone”) and Public Service Company of Oklahoma and Southwestern Electric Power
Company (“AEP West Zone”) as an addendum to the Strawman Proposals for
Compliance with the Nine Planning Principals in the Final Rule (FERC Order 890)
submitted by PJM Interconnection, LLC and Southwest Power Pool Regional
Transmission Organizations (RTOs). It describes how The AEP East companies and the
AEP West companies participate in the regional transmission planning processes of PJM
and SPP and describes AEP’s local transmission planning process and how AEP meets
the nine planning principles of FERC Order 890.
a. AEP East Zone : PJM Interconnection, LLC (PJM) RTO As set forth in the preamble to this Tariff, as of October 1, 2004, PJM became the
Transmission Provider for the AEP East Zone operating companies, which include
Appalachian Power Company, Columbus Southern Power Company, Indiana Michigan
Power Company, Kentucky Power Company, Kingsport Power Company, Ohio Power
Company, and Wheeling Power Company. As the transmission provider for the AEP East
Zone operating companies, PJM offers certain transmission services under their Open
Access Transmission Tariff (PJM OATT) filed with the Federal Energy Regulatory
Commission (PJM Tariff), including transmission planning for all AEP transmission
facilities within the PJM footprint, pursuant to the PJM Operating Agreement (“PJM
OA”). As such no new transmission service, including the transmission planning
function for the AEP East Zone will be provided under this OATT.
All AEP East Zone transmission planning, including local planning, is carried out
under the provisions of Schedule 6 of the PJM OA. This PJM planning process is a
coordinated, open and transparent planning process which satisfies the following nine
principles, as defined in the Final Rule in Docket No. RM05-25-000: coordination,
openness, transparency, information exchange, comparability, dispute resolution, regional
participation, economic planning studies, and cost allocation for new projects. The PJM
OATT also provides a mechanism for the recovery and allocation of planning costs
consistent with the Final Rule in Docket No. RM05-25-000.
Schedule 6 of the PJM OA can be located on the PJM website at:
http://www.pjm.com/documents/downloads/agreements/oa.pdf
The AEP OATT can be found on the AEP website at:
http://www.aep.com/about/codeofconduct/OASIS/default.asp
b. AEP West Zone - Southwest Power Pool (SPP) RTO The transmission planning function for the AEP West Zone transmission system
is performed under the SPP OATT.
Public Service Company of Oklahoma (PSO) and Southwestern Electric Power
Company (SWEPCO) (collectively AEP West Zone) are members of the Southwest
Power Pool (SPP). As the Transmission Provider for the SPP footprint, SPP offers
certain transmission services under its Open Access Transmission Tariff filed with the
FERC (SPP OATT). New transmission service on the AEP West Zone is provided under
the SPP OATT, as such no new transmission service within the AEP West Zone has been
provided under the AEP OATT since February 1, 2000. The SPP OATT also includes a
transmission planning process provided under Attachment O. SPP facilitates an annual
SPP transmission expansion planning process, which results in a 10-year SPP
transmission expansion plan (STEP), that AEP participates in fully, on behalf of both
PSO and SWEPCO and the respective load connected to their respective transmission
systems. AEP West Zone planning criteria conforms to NERC Planning Standards and
SPP Criteria as required by Attachment O of the SPP OATT for use in the SPP
transmission expansion planning (SPP planning) process.
SPP is revising its Attachment O of the SPP OATT to describe more fully the SPP
planning process and to meet the requirements as defined in the Final Rule in Docket No.
RM05-25-000. The SPP planning process is a coordinated, open and transparent
planning process which satisfies the following nine principles, as defined in the Final
Rule in Docket No. RM05-25-000: coordination, openness, transparency, information
exchange, comparability, dispute resolution, regional participation, economic planning
studies, and cost allocation for new projects. Schedules 7-11 of the SPP OATT provide a
mechanism for the recovery and allocation of transmission costs consistent with the Final
Rule in Docket No. RM05-25-000.
The SPP OATT, including Attachment O and details concerning the SPP planning
process, can be found on the SPP website at:
http://www.spp.org/Publications/SPP_Tariff.pdf
or through the link on the AEP website at:
http://www.aep.com/about/codeofconduct/OASIS/default.asp
II Order 890 Planning Principles
a. Coordination AEP East Zone:
The AEP companies located in PJM participate in the PJM Regional
Transmission Expansion Planning process through their participation in PJM committees
pursuant to the Regional Transmission Expansion Planning Protocols found in Schedule
6 of the PJM OA. Section 1.5.5 of Schedule 6 addresses how PJM meets the Order 890
coordination requirement. Section 1.4(d) of Schedule 6 provides that the Regional
Transmission Expansion Plan shall (i) avoid unnecessary duplication of facilities; (ii)
avoid the imposition of unreasonable costs on any Transmission Owner or any user of
Transmission Facilities; (iii) take into account the legal and contractual rights and
obligations of the Transmission Owners; (iv) provide, if appropriate, alternative means
for meeting transmission needs in the PJM Region; (v) strive to maintain and, when
appropriate, to enhance the economic and operational efficiency of wholesale electric
service markets in the PJM region; (vi) provide for coordination with existing
transmission systems and with appropriate interregional and local expansion plans; and
(vii) strive for consistency in planning data and assumptions that may relieve
transmission congestion across multiple regions.
AEP West Zone:
The AEP companies located in the SPP RTO participate in the SPP planning
process that is open to all stakeholders. AEP participates in the SPP Transmission
Working Group meetings and regional and sub-regional SPP planning summit meetings.
These open meetings eliminate the potential for undue discrimination in the SPP planning
process by allowing open communications between SPP, Transmission Owners,
transmission providing neighbors, affected state authorities, including the SPP Regional
State Committee (RSC), customers and other stakeholders. The SPP planning process
meets the intent of the Commission Order with respect to meeting regularly with
customers and other stakeholders and soliciting their input on transmission planning. The
SPP planning process is also coordinated with neighboring systems via formal
agreements SPP has with neighboring systems that address coordinated system planning
and ad hoc planning studies.
b. Openness
AEP East Zone:
The AEP companies located in PJM meet the principle of openness through
participating in the PJM Regional Transmission Expansion Planning Process. Schedule 6
of the PJM OA provides that the Planning Committee is open to all stakeholders,
including electric utility regulatory agencies and consumer advocates with regulatory
jurisdiction in the States within the PJM Region. The AEP companies also participate in
the PJM Subregional RTEP Committee. The Subregional RTEP Committee facilitates
the development and review of the Subregional RTEP Projects. The Subregional RTEP
Committee refers the Subregional RTEP Projects to the PJM Transmission Expansion
Advisory Committee (TEAC) for review, advice, and eventual recommendations to the
PJM Board of Managers. The Subregional RTEP Committee schedules and facilitates a
minimum of one Subregional RTEP Project meeting for each of the three PJM
subregions, the Mid-Atlantic, West and South, per planning period, and as required, the
Subregional RTEP Committee may facilitate additional meetings to incorporate smaller
areas within the three subregions into the subregional planning process.
AEP West Zone:
The AEP companies located in the SPP RTO participate in the SPP planning
processes open to all stakeholders. AEP participates in the SPP Transmission Working
Group meetings and regional and sub-regional SPP planning summit meetings. These
open meetings eliminate the potential for undue discrimination in the SPP planning
process by allowing open communications between SPP, Transmission Owners,
transmission providing neighbors, affected state authorities, including the SPP RSC,
customers and other stakeholders. The SPP planning process meets the intent of the
Commission Order with respect to meeting regularly with customers and other
stakeholders and soliciting their input on transmission planning. The SPP planning
process is also coordinated with neighboring systems via agreements between SPP and
neighboring systems (e.g., SPP/MISO joint operating agreement) that address
coordinated system planning and ad hoc planning studies.
The SPP planning process meets the requirement and intent that customers and
other stakeholders have timely and meaningful input and participation into the
development of the annual STEP. SPP has developed password protected access to
provide and retrieve information in order to manage confidentiality and CEII concerns to
provide stakeholder input and to access confidential data. SPP’s planning process
includes a password-protected eRoom, which was created for model and planning
information. In order to obtain a password to access the eRoom, customers and other
interested parties must execute a confidentiality agreement.
c. Transparency AEP East Zone:
Section 1.5.6 of Schedule 6 of the PJM OA requires that the recommended RTEP
plan be reviewed by the TEAC and must separately identify enhancements to the PJM
subregions, incorporate recommendations from the Subregional RTEP Committee and
separately identify enhancements that are supplemental projects. TEAC and Subregional
RTEP Committee meeting materials are posted on the PJM website.
AEP West Zone:
The criteria, assumptions, data and methodology used in the regional SPP
planning process are documented in a number of places, including, the stakeholder
meeting materials, Attachment O of the SPP OATT, the SPP Criteria, Transmission
Network Economic Modeling and Methods white paper, the STEP, password protected
modeling and data information posted on the SPP website and other documentation.
As a Transmission Owner in the SPP RTO, the AEP companies located in the
SPP RTO may develop company-specific planning criteria that, at a minimum, conform
to the NERC Reliability Standards and SPP Criteria. As a Transmission Owner in the
SPP, AEP must provide to SPP its company-specific planning criteria in order for the
need for Zonal Reliability Upgrades to be assessed and included, as appropriate, in the
STEP. The AEP West transmission planning criteria are filed with the FERC in Form
715 reporting and are also posted on the AEP website at:
http://www.aep.com/about/codeofconduct/OASIS/default.asp
The SPP planning process described above that AEP participates in meets the data
transparency requirement by making the planning information available simultaneously
to all affected parties through the planning summits, SPP Transmission Working Group
meetings, the SPP website, and eRoom.
SPP requires Transmission Owners to provide construction in-service dates and
updated costing information in a tracking report coordinated by the SPP for planned
system upgrades to ensure that reliability projects are built in time to meet the system
needs. On a quarterly basis, at a minimum, SPP reports on the status of the upgrades
identified in the transmission plan to various groups within the SPP, including the
Markets and Operations Policy Committee, the SPP RSC, and the SPP Board of
Directors.
d. Information Exchange AEP East Zone: Section 1.5.4 of Schedule 6 of the PJM OA provides: for an initial assumptions
meeting where information is exchanged among: (i) all Transmission Customers, as that
term is defined in the PJM Tariff, and applicants for transmission service; (ii) any other
entity proposing to provide Transmission Facilities to be integrated into the PJM Region;
(iii) all Members; (iv) electric utility regulatory agencies and consumer advocates within
the States in the PJM Region and (v) any other interested entities or persons. The
purposes of the assumptions meeting are to: (a) establish the assumptions to be used in
performing the evaluation and analysis of the potential enhancements and expansions to
the Transmission Facilities, (b) incorporate regulatory initiatives as appropriate, including
state regulatory agency initiated programs, and (c)provide an open forum to review the
impacts of regulatory actions, projected changes in load growth, demand response
resources, generating capacity, market efficiency and other trends in the industry. The
final assumptions shall be determined by the Transmission Expansion Advisory
Committee for both the Regional and Subregional RTEP Projects.
PJM is required to supply any information and data reasonably required by the
Members, Transmission Customers and other impacted parties, including but not limited
to electric utility regulatory agencies and consumer advocates with regulatory jurisdiction
within the States in the PJM Region, utilized to perform the Regional Transmission
Expansion Plan. Such information and data shall be provided pursuant to the appropriate
protection of confidentiality provisions.
AEP West Zone:
The SPP planning process provides for information exchange between SPP, the
Transmission Owner, network and point-to-point transmission customers, and other
affected parties. In the SPP Aggregate Transmission Service Study process, customers
provide information regarding specific requests for long-term firm transmission service,
including network and point-to-point service requirements. Also, network customers are
required to provide a new or updated Network Integration Transmission Service
application each year with a ten year forecast of summer and winter load at each delivery
point with a ten-year projection of network resources.
e. Comparability AEP East Zone:
Schedule 6 of the PJM OA and comparability requirements in the PJM OATT
ensure comparability in the PJM RTEP. Section 1.4 of Schedule 6 provides that the
Regional Transmission Expansion Plan shall reflect transmission enhancements and
expansions; load forecasts; expected demand response; and capacity forecasts, including
generation additions and retirements, for at least the ensuing ten years. Further, the
Regional Transmission Expansion Plan shall (i) avoid unnecessary duplication of
facilities; (ii) avoid the imposition of unreasonable costs on any Transmission Owner or
any user of Transmission Facilities; (iii) take into account the legal and contractual rights
and obligations of the Transmission Owners; (iv) provide, if appropriate, alternative
means for meeting transmission needs in the PJM Region; (v) strive to maintain and,
when appropriate, to enhance the economic and operational efficiency of wholesale
electric service markets in the PJM region; (vi) provide for coordination with existing
transmission systems and with appropriate interregional and local expansion plans; and
(vii) strive for consistency in planning data and assumptions that may relieve
transmission congestion across multiple regions.
AEP West Zone:
The AEP companies located in the SPP RTO participate in the development of the
studies performed to develop the STEP. Such plan includes analysis of several
transactional scenarios to evaluate relevant operating conditions for all service sold
within, out of, and across SPP to ensure comparability.
SPP also has an Aggregate Transmission Service Study process, set forth in the
SPP OATT, for transmission service requests for both point-to-point and network service
that is provided in a comparable manner for all long-term service requests evaluations
and the need for upgrades to provide such service. SPP performs three Aggregate
Transmission Service Studies a year by combining all long-term point-to-point and long-
term designated network resource requests received during a specified period of time into
a single study to conclude an optimal expansion of the transmission system that provides
the necessary Available Transfer Capability to comparably accommodate all such
requests.
The goal of the STEP is to meet the specific long-term service requests of
transmission customers in the SPP footprint. SPP independently performs the regional
planning studies based on regional planning criteria comprised of the NERC Reliability
Standards and SPP Criteria.
Transmission Owners may perform local planning studies using their own
individual planning criteria; however, this local planning criterion must conform to the
SPP Criteria and NERC Reliability Standards. AEP is required to submit to SPP its
individual planning criteria and all studies prepared to assess the need for local reliability
upgrades. SPP determines whether a better regional solution exists and whether or not
the local reliability upgrade will be included in the STEP. AEP applies its local planning
criteria comparably to all loads in its service territory.
f. Dispute Resolution AEP East Zone:
The AEP companies located in the PJM Interconnection rely on the dispute
resolution provision in Schedule 5 of the PJM OA.
AEP West Zone:
The AEP companies located in the SPP RTO rely on the dispute resolution
provision in Section 12 of the SPP OATT.
g. Regional Participation AEP East Zone: The AEP companies located in the PJM Interconnection rely on PJM to perform
regional coordination with systems interconnected to the PJM footprint. Schedule 6 of
the PJM OA sets forth the formal coordination agreements PJM has with its neighboring
systems.
AEP West Zone: The AEP companies located in the SPP RTO rely on the SPP RTO to perform
regional coordination with systems interconnected to the SPP footprint.
h. Economic Planning Studies AEP East Zone: Section 1.5.7 of Schedule 6 of the PJM OA provides for the development of
economic planning studies.
AEP West Zone: The AEP companies located in the SPP RTO rely on the SPP planning process
whereby SPP identifies upgrades that have potential economic benefit to the SPP
footprint. SPP also uses input from stakeholders to identify market needs for
transmission upgrades and proposes potential economic upgrades, which are evaluated as
part of the STEP. SPP performs a screening analysis to rank all proposed projects and to
identify potential transmission upgrades most likely to produce positive net benefits to
the SPP footprint. SPP does not require customers to submit transmission service
requests in order to initiate economic planning studies.
i. Cost Allocation AEP East Zone: Cost allocation is addressed in the PJM OA and Schedule 12, and Attachment T
of the PJM OATT.
AEP West Zone: The AEP companies located in the SPP RTO rely on the SPP cost allocation
process under the directive of the SPP RSC and its Cost Allocation Working Group, both
of which encourage and provide for stakeholder participation. AEP participates in these
meetings. The SPP RSC developed a Cost Allocation Plan that has been accepted by the
Commission. The SPP RSC continually reviews such plan to address allocation of the
costs of facilities that are not currently addressed in the plan, such as economic upgrades
and other projects that may be beneficial to the region.
American Electric Power Transmission Planning Reliability Criteria AEP’s transmission lines and substations, which operate at voltages of 69 kV and above,
are used to transfer power from generating stations to load centers or to interconnect with
other electric utilities for the purpose of providing reliable electric supply to load serving
entities and making power transfers. AEP uses Good Utility Practice to ensure its
transmission system is in compliance with the Electric Reliability Council of Texas
(ERCOT) Reliability Criteria and NERC Planning Standards as applicable, as well as the
specific criteria listed below.
1. Nominal Voltage Levels Nominal 345 kV, 161 kV and 138 kV voltage levels will normally be used for most new
power transmission lines. Some interconnection lines may be at 115 kV, 230 kV, or 500
kV to match neighboring utilities’ voltage, and some 69 kV lines may be constructed in
appropriate situations.
2. Voltage regulation (a) Generators are generally scheduled to hold higher than nominal generator voltage
during peak load periods to stabilize transmission system voltages.
(b) Capacitor banks, reactors, and LTC auto-transformers are used in transmission
substations to hold voltage levels within acceptable ranges during normal and emergency
conditions.
(c) System conditions must be controlled so as to prevent excessive LTC tap changes.
(d) Dynamic reactive resources, synchronous condensers, stored energy devices, and
series compensation are used as appropriate.
3. Voltage Limits (a) Transmission voltages should not exceed 105% nor fall below 95% of the nominal
voltages shown above during normal operation of the system.
(b) Transmission voltages during emergencies should not exceed equipment
overexcitation ratings.
(c) Transmission voltages during emergencies should not result in customer voltages
exceeding or falling below prescribed limits at distribution substations on the
transmission system.
(d) Transmission voltage should not exceed 105% nor fall below 90% of nominal
voltage shown above during emergencies. The low limit can be lower if voltage
regulating equipment maintains voltage to the customers within prescribed limits at
distribution substations involved without causing voltage problems at nearby loads.
(e) Voltage flicker on the transmission system (such as those caused by motor starting,
capacitor or reactor switching, furnace loads, drag lines and other intermittent or varying
real and reactive loads) will be dictated by the sensitivity of the load or loads being
served. The attached chart is a modified version of the ANSI/IEEE (Std. 141-1993)
Voltage Flicker Chart listed in the IEEE Red Book.
4. Thermal Capabilities of Transmission Facilities (a) Transmission Lines
(1) Existing transmission lines were designed to meet operating standards that
were in effect at the time the line was built. The National Electric Safety Code
(NESC) specified the maximum conductor temperature that maintained
acceptable ground clearance while allowing for acceptable loss of conductor
tensile strength. AEP’s Transmission Planning group uses thermal ratings that are
consistent with the NESC design standards being practiced at the time the line
was built.
(2) The thermal capabilities are assigned on a line-by-line basis with design
constraints applied based on design limits.
(3) The circuit thermal capabilities should be reduced to the rating of the
substation terminal equipment if the ratings of that equipment are lower than the
conductor ratings. In general, substation terminal equipment should be sized to
match or exceed conductor ratings.
(4) The emergency rating for transmission lines are for two (2) hours.
(b) Autotransformers
(1) The normal rating for autotransformers shall be its top nameplate rating,
including the effects of forced cooling equipment if it is available.
(2) The emergency rating for autotransformers shall be 110% of its top
nameplate rating for the first two (2) hours of emergency operation and 100%
thereafter. Such ratings may be increased on a case-by-case basis following
detailed evaluation of the transformer’s manufacturer test results.
(c) Disconnect Switches
The normal and emergency rating shall be 100% of nameplate rating.
(d) Wave Traps
The emergency rating shall be 110% of nameplate rating.
(e) Current Transformers
The normal rating shall be 1.5 times the primary current rating of the CT. The
two (2) hour emergency rating shall be 10% greater than the normal rating.
(f) Circuit Breakers
The normal and emergency rating shall be 100% of nameplate rating.
5. Reactive Power Capability Reactive power resources will be provided in amounts that are sufficient for
system voltage control under normal and contingency conditions, including the dynamic
period following system disturbances. Each AEP operating company is responsible for
providing or arranging for the provision of reactive power reasonably adequate to supply
both its own reactive power load and any reactive power losses associated with service to
its transmission service load, whether such losses are incurred on its own system or the
facilities of others. Transmission Planning with Regional Transmission Operations will
coordinate reactive power resource planning.
The power factor for each operating company and its major sub-areas will be
maintained as follows:
(a) The overall system power factor range should be maintained at 99-100% lagging.
This will be calculated from the net MW and MVAr flows on the high side of the
generator step-up transformer, and at the interconnections. A net power factor of 97%-
100% lagging should be maintained on the generator side of the step-up transformer.
(b) Leading power factor on generators will normally be used only for off-peak, low load
situations for limited amounts of time, to reduce the likelihood of generator instability.
6. Transmission Capacity and Load at Risk (a) Transmission capacity of individual power transmission lines is planned so
generation can be economically scheduled for all load levels with all lines in service with
consideration of the cost of transmission losses and future loading of the lines.
(b) With one line out of service, no generation curtailment should be necessary.
(c) The minimum transmission capacity to a major transmission substation will be
maintained at the substation rating with the largest incoming line out of service.
7. Stability Stability testing covers the entire range of power system dynamics from "first
swing" transient stability to longer term oscillatory and steady-state stability. This testing
is an essential complement to the steady-state analysis embodied in load flow testing.
Power plant transient stability is an important consideration since loss of
synchronism (or instability) of a generating unit or an entire generating plant can lead to
equipment damage and severe power system transient swings, which compounds the
disturbance by causing the tripping of the unstable generators and possibly other
equipment. When simulating system contingencies affecting power plant stability,
various types of fault and network conditions are analyzed using the transient stability
performance testing criteria outlined in the attached table. The generator’s responsibility
for facility upgrades as identified in the table is dependent on the regulatory provisions in
the jurisdiction in which the generator is interconnected.
Steady-state and oscillatory stability performance problems may be initiated by a
wide variety of contingencies or operating conditions on the transmission network.
Network disturbances are similarly applied when testing for steady-state and oscillatory
instability.
AEP generally carries out simulations corresponding to the A through E set of
criteria in the attached table for facility planning studies. For operational planning
studies, the F and G criteria, in addition to the A-E set, are applied, especially when a
long-term facility outage is anticipated. Testing of more severe disturbances than those
in the table may be performed to evaluate the strength of the transmission system and to
assess potential for cascading outages. Examples of such testing include common-failure
mode disturbances such as double circuit tower faults or bus faults that result in the
outage of multiple facilities at a location.
The disconnection of generation due to a disturbance is distinct from instability.
Instability refers to loss of synchronism or pole slipping when the generation remains
physically connected. Disconnection results in generator overspeed followed by turbine
shutdown in response to protective relay action. Systems are planned such that
disconnection does not occur for single contingencies. Disconnection may occur during
disturbance scenarios involving the outage of more than one transmission element, or
common-failure mode disturbances such as bus outages, as a consequence of isolating
faulted facilities or other system design considerations. Disconnection under these
circumstances is considered to be acceptable whereas instability is not.
8. Reliability (a) More probable contingency testing shall investigate the following situations:
(1) Loss of any single critical transmission line,
(2) Loss of any single transformer,
(3) Loss of any bus section,
(4) Loss of any double circuit line of one mile or greater length,
(5) Loss of any tie breaker,
(6) Loss of any generating unit,
(7) Loss of a critical transmission line or auto-transformer when any
generating unit is unavailable, and
(b) For the occurrence of any of the above more probable contingencies, testing must
conclude that:
(1) All facility loadings are within their emergency ratings and all voltages are
within their emergency limits, and
(2) Facility loadings can be returned to their normal limits within two hours.
(c) Less probable contingency testing shall investigate the following situations:
(1) Loss of any combination of related facilities, a critical transmission line
when a 345 kV auto-transformer is out of service, or a generating unit when
another generating unit is out of service.
(2) Sudden outage of any multi-circuit transmission line at a time when any
other single circuit is out of service,
(3) Sudden outage of any single or double-circuit transmission tower line at a
time when two generating units are out of service, for maintenance or economics,
(4) Sudden outage of any generating unit at a time when any two other
generating units are out of service for maintenance or economics,
(5) Sudden outage of all generating units at any plant,
(6) Sudden outage of all transmission lines on the same right-of-way,
(7) Sudden outage of any transmission station including all generating
capacity associated with such a station,
(8) Sudden dropping of a large load or a major load center, and
(9) Any other credible contingent scenario that might lead to cascading
outages.
(d) For the occurrence of any of the above less probable contingencies, testing must
conclude that neither uncontrolled islanding, nor uncontrolled loss of large amounts of
load will result.
9. Transfer Capability The following guidelines are applied in determining adequate transfer capability:
(a) Each load center within the AEP transmission network must be able to import an
amount of power at least equal to the net of the center’s load and generation, while
maintaining all facilities within their emergency ratings, and maintaining voltages within
emergency limits during any of the more probable contingencies listed in section 8.
(b) Each operating company will maintain an import capability sufficient to support a
loss of load expectation index of no greater than 0.1 indicating that load will exceed
generation no more than one day in 10 years.
Footnotes to Table I:
a) Applicable rating (A/R) refers to the applicable normal and emergency facility
thermal rating or system voltage limit as determined and consistently applied by the
system or facility owner.
b) Planned or controlled interruption of generators or electric supply to radial
customers or some local network customers, connected to or supplied by the faulted
component or by the affected area, may occur in certain areas without impacting the
overall security of the interconnected transmission systems. To prepare for the next
contingency, system adjustments are permitted, including curtailments of contracted firm
(non-recallable reserved) electric power transfers.
c) Cascading is the uncontrolled successive loss of system elements triggered by an
incident at any location. Cascading results in widespread service interruption which
cannot be restrained from sequentially spreading beyond an area predetermined by
appropriate studies.
d) Depending on system design and expected system impacts, the controlled
interruption of electric supply to customers (load shedding), the planned removal from
service of certain generators, or the curtailment of contracted firm (non-recallable
reserved) electric power transfers may be necessary to maintain the overall security of the
interconneted transmission systems.
e) A number of extreme contingencies that are listed under Category D and judged
to be critical by the transmission planning entity(ies) will be selected for evaluation. It is
not expected that all possible facility outages under each listed contingency of Category
D will be evaluated.
AEP TRANSIENT STABILITY DISTURBANCE TESTING CRITERIA
PREFAULT CONDITION 765 KV PLANTS 345 KV PLANTS
All Transmission Facilities in Service 1A Permanent single line-to-ground (SLG) fault with 1φ breaker failure. Fault cleared by backup breakers.
2A Permanent SLG fault with 1φ breaker failure. Fault cleared by backup breakers.
1B Permanent SLG fault cleared by primary breakers. 3φ fault developed following HSR. Fault cleared by primary breakers.
2B Permanent 3φ fault with unsuccessful HSR, if applicable. Fault cleared by backup breakers.
1C 3φ line opening without fault. 2C 3φ line opening without fault. One Transmission Facility Out of Service 1D Permanent SLG fault with
unsuccessful HSR, if applicable. Fault cleared by primary breakers.
2D Permanent 3φ fault with unsuccessful HSR, if applicable. Fault cleared by primary breakers.
1E 3φ line opening without fault. 2E 3φ line opening without fault. Two Transmission Facilities Out of Service
1F Temporary SLG fault with successful HSR, if applicable.
2F Temporary 3φ fault with successful HSR, if applicable.
1G 3φ line opening without fault. 2G 3φ line opening without fault.
138 KV PLANTS
3A Permanent SLG fault with 3φ breaker failure. Fault cleared by backup breakers.
3B Permanent 3φ fault with unsuccessful HSR, if applicable. Fault cleared by backup breakers.
3C 3φ line opening without fault. 3D Permanent 3φ fault with unsuccessful HSR, if applicable. Fault cleared by primary breakers.
3E 3φ line opening without fault. 3F Temporary 3φ fault with successful HSR, if applicable.
3G 3φ line opening without fault.
Generation Connection Studies Process and Criteria for Evaluating the Impacts on the AEP Transmission System
The underlying premise of American Electric Power's (AEP's) process and criteria
to evaluate the integration of a new or expanded generating plant facility is based on the
premise that the generation facility owner should be responsible to mitigate any negative
impacts on service reliability to existing transmission customers through the
reinforcement of the network.
In the evaluation of generating plant connections to the AEP transmission system,
the planning criteria must be adhered to not only for the initial year when the plant is
scheduled to be placed in service but for a period of at least 5 to 10 years thereafter. In
addition, the evaluation must also recognize that the EHV transmission system was
designed to transmit electric power from remotely located large base-loaded power plants
to local area loads. The 138 kV and the lower voltage local transmission systems were
designed to distribute this power from the point of connection with the EHV transmission
system to the point of consumption (i.e., directly connected customer facilities,
distribution system, etc.). While the EHV transmission system in some areas may have
capacity to accommodate moderate levels of new generation without significant system
impacts, the local transmission, with normally lesser capacities, may not have margin
available to easily integrate the new generation. New generating capacity is typically an
order of magnitude or more greater than the connected loads (e.g., 300-1000 MW
generating facility vs. 10-30 MW of connected load at a single node). In addition, circuit
breakers may become inadequate from a fault interrupting perspective as a result of
additional fault current caused by the new generating facilities.
The 138 kV and lower voltage transmission systems are designed to provide
margins for changing conditions. The study process for determining and implementing
future facility modifications or additions takes into consideration expected load growth
over a 5 to 10 year period. These analyses are conducted for normal peak load and
contingency conditions to ensure continuous and reliable power delivery to the local
transmission system customers.
As part of the process to evaluate new capacity addition requests for connection to
the transmission system, the cost responsibility of the generating plant integration must
be assessed by applying AEP’s planning criteria over a reasonable planning horizon. The
application of AEP’s criteria in examining generating plant connection is consistent with
the existing AEP practices and criteria that are used in defining potential constraints and
implementing future system modifications or additions. The intent of the process in
applying AEP’s criteria in the evaluation of new generating capacity connection to the
system is to maintain a level of service reliability, with the new generating capacity in
service, comparable to the level that existed prior to the new generating capacity
connection.
In all cases following a single contingency outage, all transmission facilities must
be within their respective thermal capabilities and voltages must be no less than
minimum acceptable levels. Stability performance of the proposed generator must be
sufficient to ‘ride through’ a single contingency outage without loss of synchronism. AEP
will generally allow the generator to agree to reduce output following the first
transmission contingency in order to maintain reliability following a potential next
contingency outage and thereby minimize the extent of transmission upgrades or
modifications.
The criteria detailed below for system enhancements associated with the
connection of new generating capacity is designed to maintain the prevailing level of
service reliability and quality to existing customers.
Transmission Line Loading:
If as a result of the added generation, the loading on an EHV line would exceed
its normal capability during normal or single contingency conditions, the generating plant
owner shall be responsible for all system modifications required to restore the line
loading to within the normal capability. Likewise, if as a result of additional generation,
the loading on an EHV facility would exceed its emergency rating during double
contingencies, the generating plant owner would be expected to reduce plant output in
actual operation following the loss of a critical transmission facility or be responsible for
the necessary system modifications to reduce the EHV facility loading to within
emergency capability.
If as a result of the added generation, a 138 kV transmission line loading exceeds its
emergency rating during either normal or contingency conditions, the generating plant
owner shall be responsible for all system modifications to restore the line loadings to
within rating. In some cases, limiting terminal equipment must be replaced in order to
increase the capability of the line. In other cases, more extensive system modifications
may be required.
If as a result of the added generation, transmission line loadings exceed the
normal rating of the conductor during normal or contingency conditions and the line has
not been recently assessed for safe conductor clearance, the generating plant owner shall
pay AEP to conduct a survey to check for appropriate sag clearance. If the sag checks
indicate any sag violations that limit the line to less than the conductor emergency
capability, the generating plant owner shall pay for the removal of those limitations.
Transformer Loading:
If as a result of the added generation, the loading on an EHV/EHV, e.g., 765/345
kV, 500/345 kV transformer would exceed its normal capability during either normal or
single contingency conditions, the generating plant owner shall be responsible for all
system modifications required to restore the transformer loading to within the normal
capability or to the transformer loading level which would occur without the generation,
whichever is greater.
If as a result of the added generation, the loadings on any EHV/138 kV or any
lower voltage transformer exceeds its emergency rating during either normal or
contingency conditions, the generating plant owner shall be responsible for system
modifications needed to reduce the transformer loadings to below the transformer
emergency rating.
Short Circuit Duty:
If the short circuit duty of any existing circuit breaker would exceed its rating due
to the installation of the new generating capacity addition, the generating plant owner
shall be responsible for the cost to replace the affected equipment. These facilities are
necessary to safely and reliably connect the new generating capacity to the AEP
transmission system.
Additional system improvements may also be required to transmit the output of the new
generating capacity across the transmission system. The request for transmission service
and any additional transmission system improvements would be addressed under AEP’s
OATT.
ATTACHMENT S Reserved for Future Use
ATTACHMENT T Interconnection and Local Delivery Service Agreement This Agreement is entered into this _____ day of __________ 20__, by and
between (“ ” or “Customer”), and American Electric
Power Service Corporation, as Designated Agent for the AEP Operating Companies1
(“AEP”), being sometimes herein referred to collectively as the “Parties” or singularly as
a “Party”. In consideration of the mutual covenants and agreements herein, it is agreed as
follows:
[Note 1: Appalachian Power Company, Columbus Southern Power Company, Indiana
Michigan Power Company, Kentucky Power Company, Kingsport Power Company,
Ohio Power Company, and Wheeling Power Company, all of which are now doing
business as AEP]
WITNESSETH:
WHEREAS, the AEP companies are wholly owned subsidiaries of American Electric
Power Company, Inc., owning and operating, inter alia, electric facilities for, and
engaged in, the generation, transmission, distribution and sale of electric power and
energy;
WHEREAS, is a corporation, ___________________
_______________________________________________________________; and
WHEREAS, PJM Interconnection, L.L.C. (“PJM”), is a Regional Transmission
Organization (“RTO”), offering transmission service to eligible customers, and having
functional control over the AEP East Zone transmission network upon integration of
AEP’s East Zone into PJM (“Transmission Provider”); and
WHEREAS, the Parties wish to establish the terms and conditions of the local delivery
services, as defined under this Interconnection and Local Delivery Service Agreement
(“ILDSA”), that AEP will provide to Customer in coordination with, but separate from,
the transmission service that will be provided by the PJM RTO;
NOW, THEREFORE, in consideration of the premises and of the mutual covenants set
forth herein, the Parties agree as follows:
Article 1 Applicable Tariffs
1.1 Applicability of Tariffs: During the term of this Agreement, as it may be amended from time to time, AEP
agrees to provide Interconnection and Local Delivery Services for the Customer, and the
Customer agrees to pay for such services the charges identified in Attachment 1 hereto
and such other charges as shall be applicable hereunder, in accordance with this
Agreement. In addition, the applicable provisions of the Open Access Transmission
Tariff of the AEP System (“AEP Tariff”), and, as to certain provisions referenced herein,
the Open Access Transmission Tariff of the PJM RTO (“PJM Tariff”), as each tariff shall
at any time during the term of this Agreement be on-file and accepted by the Federal
Energy Regulatory Commission (“Commission”), including any applicable Schedules
and Attachments appended to such tariffs. Interconnection and Local Delivery Services
means services described herein which are subject to the jurisdiction of the Commission
but not provided by the PJM RTO under the PJM Tariff. AEP shall not provide any
services or make any charges hereunder that are provided or charged by the PJM RTO
under the PJM Tariff.
1.2 Governance over Conflicts: The terms and conditions of such Interconnection and Local Delivery Services
shall be governed by this Agreement and the AEP Tariff, as it exists at the time of this
Agreement, or as hereafter amended. The AEP Tariff, as it currently exists or as hereafter
amended, is incorporated in this Agreement by reference. In the case of any conflict
between this Agreement and the AEP Tariff or PJM Tariff, the AEP Tariff or PJM Tariff
shall control, except that the PJM Tariff shall control if the AEP Tariff and the PJM
Tariff are in conflict.
Article 2 Delivery Points
2.1 Existing Delivery Points: Unless the Parties shall subsequently otherwise agree, the existing facilities
connecting the Customer’s Members power delivery facilities to the AEP power delivery
facilities (“Delivery Points”) listed in Attachment 1, and illustrated in corresponding one
line diagram(s) contained in Attachment 2, shall be continued in service. The Customer
and AEP shall endeavor to operate their respective facilities in continuous synchronism
through such Delivery Points as shall from time to time be established by mutual
agreement between the Parties. AEP and the Customer acting through its Members, if
applicable, to the extent practicable, shall each maintain the facilities on their respective
sides of such points, and future points of delivery as may be established from time to time
in accordance with Good Utility Practice, in order that said facilities will operate in a
reliable and satisfactory manner, and without material reduction in their intended capacity
or purpose.
If the function of any such facility is impaired or the capacity of any point of
delivery is reduced or such synchronous operation at any point of delivery becomes
interrupted, either manually or automatically, as a result of force majeure or maintenance
coordinated by the Parties, AEP and the Customer acting through its Members, if
applicable, shall cooperate to remove the cause of such impairment, interruption or
reduction, so as to restore normal operating conditions expeditiously, it being understood
that this or any other provision of this Agreement, notwithstanding, AEP shall retain the
sole responsibility and authority for operating decisions as they relate to the integrity and
security of the AEP system.
2.1.1 Interruption or Reduction of Service at the Delivery Interruption or Reduction of Service at the Delivery Points:
The continuity of service at any Delivery Point provided under this Agreement
may be interrupted or reduced, (a) by operation of automatic equipment installed for
power system protection, (b) after consultation with the affected party, at any time that a
party deems it desirable for installation, maintenance, inspection, repairs, or replacement
of equipment, (c) at any time that in the judgment of the interrupting party such action is
necessary to protect personnel or the public, preserve the integrity of, or to prevent or
limit any instability on, or to avoid a burden on, their respective system or prevent
damage to equipment.
2.2 Changes in Delivery Points and Local Delivery Facilitie Changes in Delivery Points and Local Delivery Facilities When it becomes necessary or desirable to make changes in the Delivery Point
facilities, to upgrade, retire, replace or establish a new Delivery Point, including metering
or other facilities at such location, the provisions of this Section shall apply.
2.2.1 Study Requests for Changes in Delivery Facilities:
The Customer shall make requests for changes in local delivery facilities,
including facility upgrades, retirements and replacements, or the establishment of any
new Delivery Point, in writing to AEP, delivered by post or electronic mail (email) to
Director, Transmission and Interconnection Services, and Manager, East Area
Transmission Planning. AEP shall likewise respond to such requests in writing, by post
or email. A request for a new Delivery Point or modification of an existing Delivery
Point should include, at a minimum, the following information:
a) Nature of the change such as: modifications to an existing Delivery Point,
new Delivery Point, increased capacity, and retirement, etc.;
b) Location of the Delivery Point;
c) Voltage class of the Delivery Point;
d) Specific AEP transmission facility that the Delivery Point is to be
connected to;
e) Non-binding good faith estimate of load to be served by the Delivery Point
for the first 5 years;
f) Specific modifications to an existing Delivery Point, if applicable; and
g) Desired in-service date.
2.2.2 System Impact Study (SIS): Unless otherwise mutually agreed, AEP shall respond within five (5) business
days of receipt of such a request and provide a System Impact Study Agreement and a list
of any additional information that AEP would require from the Customer to proceed with
such study. The study agreement shall commit the Customer to pay AEP the actual cost
to complete the study and to make an advance deposit equal to the estimated study cost or
$25,000, which ever is less. The Customer shall execute and deliver executed SIS
Agreement within thirty (30) calendar days following its receipt and required deposit.
Upon receipt of the executed study agreement, study data and the required deposit, AEP
shall carry out the SIS. In the SIS, AEP shall assess the feasibility of modifying an
existing Delivery Point or establishing the new Delivery Point using power flow and
short circuit analyses and any other analyses that may be appropriate.
If the Customer fails to return an executed SIS Agreement within thirty (30)
calendar days of receipt or at a later date as the Parties mutually agree, AEP shall deem
the study request to be withdrawn. The Customer may withdraw its study request at any
time by written notice of such withdrawal to AEP.
AEP shall issue a report to the Customer within sixty (60) calendar days of the
receipt of an executed SIS Agreement, or at a later date as the Parties may mutually
agree. If AEP is unable to complete such study in the allotted time, AEP shall provide an
explanation to the Customer regarding the cause(s) of such delay and a revised
completion date and study cost estimate.
Upon completion of the SIS, the Customer shall reimburse AEP for the unpaid
cost of the SIS if the cost of the study exceeds the deposit. AEP shall refund the
Customer, with interest, any portion of the deposit that exceeds the cost of the SIS. Or, at
the written request of the Customer, AEP shall apply the remaining balance to the
Facilities Study. The interest rate will be computed in accordance with 18 C.F.R. §
35.19a(a)(2).
2.2.3 Facilities Study (FS):
Following the completion of the SIS, AEP shall provide to the Customer a
Facilities Study (FS) Agreement. The Facilities Study Agreement shall provide that the
Customer shall compensate AEP for the actual cost of the Facilities Study. The
Customer shall execute the Facilities Study Agreement and deliver the executed Facilities
Study Agreement to AEP within thirty (30) calendar days following its receipt, together
with the required technical data and deposit in an amount equal to the estimated cost of
the FS or $25,000, which ever is less. The FS shall determine the details and estimated
cost of facilities necessary for establishing the requested Delivery Point and any system
additions/upgrades needed to address any problems identified in the SIS. AEP shall
complete the study and issue a Facilities Study report to the Customer within ninety (90)
calendar days after receipt of an executed Facilities Study Agreement, deposit and
necessary data, or at a later date as the Parties may mutually agree.
If the Customer fails to return an executed FS Agreement within thirty (30)
calendar days of receipt or at a later date as the Parties mutually agree, AEP shall deem
the study request to be withdrawn. The Customer may withdraw its study request at any
time by written notice of such withdrawal to AEP.
The results of the Facilities Studies shall be valid for a period of one year. If the
Customer delays for more than one year the continuation of the process for establishment
of a new Delivery Point, the customer’s request shall be deemed withdrawn and a new
request and potentially new SIS and FS shall be required.
2.2.4 Expedited System Study: If AEP determines that minimum efforts are needed to carry out the requested
Delivery Point modifications/ additions, AEP shall, upon request by the Customer, offer a
single agreement covering the System Impact Study and Facilities Study, the “System
Study Agreement.” The Study Agreement shall commit the Customer to pay AEP the
actual cost to complete the study and to make an advance deposit equal to the estimated
study cost or $25,000, which ever is less.
If the Customer fails to return an executed System Study Agreement within thirty
(30) calendar days of receipt along with the required deposit, or at a later date as the
Parties mutually agree, AEP shall deem the study request to be withdrawn. The
Customer may withdraw its study request at any time by written notice of such
withdrawal to AEP. AEP shall complete the study and issue an Expedited System Study
report to the Customer within sixty (60) calendar days after receipt of an executed
Expedited Study Agreement, deposit and necessary data, or at a later date as the Parties
may mutually agree.
2.2.5 Modifications to Study Request:
During the course of a System Impact Study, Facilities Study, or System Study,
either the Customer or AEP may identify desirable changes in the planned facilities that
may improve the costs and/or benefits (including reliability) of the planned facilities. To
the extent the revised plan, and study schedule, are acceptable to both AEP and the
Customer, such acceptance not to be unreasonably withheld; AEP shall proceed with any
necessary restudy. Any additional studies resulting from such modification shall be done
at the Customer's cost.
2.3 Engineering, Design and Construction of New Facilities: If pursuant to a request by the Customer, AEP agrees to provide engineering,
design and construction of facilities described in the final study report, a facilities
agreement (“Facilities Agreement”) shall be signed by the Customer and AEP specifying
the terms and conditions. Each such Facilities Agreement will be incorporated in this
agreement, initially as an attachment hereto, and after project completion through
inclusion in Attachment 1 and Attachment 2. Following the signing of the Facilities
Agreement, the receipt of any outstanding technical information, deposit or instrument or
showing that Customer meets the financial creditworthiness requirements of the AEP
Tariff, Section 11 (“Creditworthiness”), AEP will proceed with the engineering, design
and procurement activities to construct, reconfigure, upgrade, replace or retire such local
delivery or other facilities. All Facilities Agreements for Delivery Points existing as of
the date of this Agreement and described in Attachment 1 shall remain in full force and
effect in accordance with their terms.
2.4 Cost Recovery Protection: Pursuant to this Agreement, AEP and Customer will cooperate regarding the
planning, provision and utilization of transmission and local delivery facilities needed to
reliably deliver power and energy to Customer’s loads connected to AEP’s facilities. As
such, AEP may be required to construct or otherwise expand transmission and local
delivery facilities, predicated upon Customer’s planned use of such facilities, including
the Customer's planned use of external and internal generating capacity. If the Customer
alters its use of the transmission and/or local delivery service facilities, through the
transfer of load to the system of another service provider, AEP shall be entitled to
compensation for “Stranded Costs” to the extent such load transfer causes AEP’s
revenues to be reduced. Any such claim for Stranded Costs by AEP shall be net of the
present value of any incremental transmission revenue that AEP will receive by providing
transmission or local delivery service to other customers using the transmission or local
delivery capacity freed up by the Customer's load change. To the extent practicable, AEP
will make efforts to find customers to take the available transmission service to minimize
the stranded cost recovery on a case-by-case basis. AEP will make a Section 205 filing
under part 35 of Commission’s regulations to seek Commission’s authorization for any
Stranded Cost recovery, identifying the facilities and voltages and recovery support for
the cost and duration of the recovery period.
2.5 In-Line Facilities: AEP shall have the sole right to operate, maintain, and at its option, to own any
facilities that are required to be installed in-line with AEP’s facilities and that may affect
the continuity and reliability of AEP facilities that provide or protect service to other
customers.
2.6 Connection Guide:
The requirements for connection of non-generating facilities to the AEP
transmission system are contained in the AEP document “Requirements for Connection
of Non-Generation Facilities to the AEP East Transmission System”, referred to herein as
the “Connection Guide”. A copy of this document can be obtained from AEP
Transmission Planning.
Article 3 Local Delivery Services
3.1 Measurement of Load At Each Delivery Point: The Customer's load, kW, kWh and kVAr at each Delivery Point shall be
measured at least on an hourly integrated basis, by suitable revenue grade metering
equipment. The measurements taken and required metering equipment shall be as needed
for all settlement purposes under this Agreement, the AEP Tariff and the PJM Tariff and
in accordance with the AEP standards and practices as contained in the Connection
Guide. At points where power may flow to and from the Customer, separate
measurements shall be obtained for each direction of flow. Any necessary metered data
shall be made available with such frequency and at such times as may be required by
AEP or PJM in suitable electronic format. If AEP, _____________, or PJM requires
real-time load or facility status information from any Delivery Point, the other Party shall
cooperate, to the extent necessary, in order that such monitoring and telecommunications
equipment, as shall be needed for such purpose may be installed and maintained during
normal business hours common to AEP and _____________. AEP shall provide to
_____________, on a monthly basis by the fifth business day after the end of the prior
month, the hourly kW, kWh and kVAr load data. Such data, along with the master
MV90 file format and 15-minute interval data for kWh and kVAhr for each Delivery
Point, shall be supplied in MV90 translatable format and by e-mail. _____________ shall
compensate AEP for metering and meter data processing services as specified in
Attachment 1 of this Agreement.
Customer will be permitted to remotely interrogate any delivery point meter for
the purpose of obtaining load data and, if available, power quality data through read-only
access via the AEP delivery point meter modem and telephone circuit or real time
Supervisory Control and Data Acquisition (“SCADA”) system equipment. At the request
of Customer, AEP will cooperate on the installation of “smart” technology metering in
place of the standard metering equipment at a delivery point, provided; however, that
AEP shall not be obligated to install, operate or maintain any meter or related equipment
that is not approved for use on the AEP System. AEP will also cooperate with Customer
on the installation of any additional telephone circuit(s) and/or satellite communications
devices with associated data circuits or other mode(s) of communications and allow for
the connection of such meter communications circuit(s) to the Customer’s real time
SCADA system equipment, provided that such equipment connections and
communications can be accomplished in a manner that does not interfere with the
operation of AEP equipment or fulfillment of any statutory or contractual obligation. If
the potential for such interference exists, AEP will work with the Customer, through
reasonable measures, to resolve such metering and/or communications issues. As with
standard metering, Customer will bear all costs associated with smart technology
metering, additional communication, and/or SCADA equipment it requests.
3.2 Compensation for Local Delivery Services:
The Customer shall, to the extent consistent with Federal Energy Regulatory
Commission Policy, reimburse AEP its costs associated with new and existing facilities,
not otherwise recovered through the transmission charges under the PJM Tariff, either
through monthly charges agreed to by the Parties which charges shall be specified in
Attachment 1or, at AEP’s option, pursuant to the Formula Rate for Facility Construction,
Operation and Maintenance contained in Attachment 4 to this Agreement. The Parties
shall mutually agree upon the provision and cost of providing such distribution facilities
as may be necessary to maintain reliable service to the Delivery Points.
3.3 Local Reactive Power Services: Load power factor charges will be assessed to the Customer pursuant to the
following Delivery Point power factor clause based on the hourly kW and kVAr demand
metered at the Delivery Points as follows:
The maximum hourly reactive power (kVAr) demand, both leading and lagging
will be measured each month at each Delivery Point. When multiple Delivery Points are
operated as closed loops, the real and reactive power measurements will be combined for
the purpose of this provision. Customer will incur no charges for power factor if the
maximum leading and lagging kVAr demand at each Delivery Point is managed, so as
not to exceed 20% of the real power (kW) demand in the same hourly intervals. Charges
will be assessed for leading and/or lagging kVAr demand at each Delivery Point if the
maximum hourly value of such demand exceeds 20% of the kW demand in the same
interval. The charges will be $0.30/kVAr for all leading and/or lagging kVAr demand in
excess of 20% of the corresponding kW demand, provided; however, that when the kVAr
demand exceeds 50% of the kW demand, the charge will be $0.50/kVAr, for all kVAr,
leading and/or lagging, in excess of 20% of the corresponding kW demand.
3.4 Losses: The Customer’s load shall be adjusted, for settlement purposes, to include AEP
East Zone transmission and distribution losses, as applicable. Presently, the FERC
approved transmission loss factor for the AEP East Zone is 3.3% of energy received by
AEP for transmission to the Customer’s Delivery Points (1/(1-0.033) = 3.413% of
delivered energy). Distribution losses shall be assessed, where applicable, at the rates as
specified in Attachment 1. To the extent Customer’s load at any Delivery Point is
supplied from behind the meter generation, losses shall be assessed only for the net load
delivered to such Delivery Points by AEP.
3.5 Maintenance of Local Delivery Point Facilities: If Pursuant to a request by Customer, AEP constructs facilities and is reimbursed
by Customer at cost, such cost will be calculated pursuant to the AEP Formula Rate for
Facility, Construction, Operation, and Maintenance charges, attached hereto as
Attachment 4, unless the Parties otherwise agree. When AEP provides operation and
maintenance (O&M) services for any Delivery Point and/or distribution facilities owned
by the Customer, or its members if applicable, such service will be made pursuant to any
repair and maintenance agreement (“O&M Agreement”) that may exist between
Customer and AEP, or to Attachment 3 of this Agreement.
3.6 Operational Access and Control:
Unless otherwise specifically agreed, AEP shall have the sole right to enter upon,
test, operate and control the facilities covered by this Agreement that are owned by
Customer when such facilities can directly affect the safety, reliability and/or continuity
of service to other customers. The right to test, operate and control said facilities
includes but is not limited to the power to direct the opening and closing of switches for
construction, operation, testing, maintenance and other relevant purposes. Except in the
event of an emergency, neither party will exercise operational access and control of
facilities owned by the other unless permission is expressly granted to such party by the
owning party.
All meters and test switches, whether provided by AEP or _____________, shall
be sealed and the seals shall be broken only when the meters are to be tested, adjusted or
replaced. The other Party shall be provided as much advance notice as is practicable in
the circumstances when the facilities of that Party are to be entered or the seals of any
meter are to be broken, and such Party shall be afforded the opportunity to be present
during such test, adjustment, repair, replacement.
3.7 Administrative Committee: AEP and Customer shall each appoint a member and at least one alternate to an
Administrative Committee, and so notify the other party of such appointment(s) in
writing. Such appointment(s) may be changed at any time by similar notice. Each
member and alternate shall be a responsible person familiar with the day-to-day
operations of their respective system. Generally, this would mean that the Administrative
Committee representative(s) will be employees AEP and the Customer, or entities
represented by the Customer; however, the representative(s) may be accompanied by
other experts, appropriate to the matters to be considered.
The Administrative Committee shall represent AEP and Customer in all matters
arising under this Agreement and which may be delegated to it by mutual agreement of
the parties hereto.
3.7.1 Principal Duties: The principal duties of the Administrative Committee shall be as follows:
a.) To establish operating, scheduling and control procedures as needed to
meet the requirements of coordinated operation, this Agreement and any requirements of
the Transmission Provider;
b.) To address issues arising out of accounting and billing procedures;
c.) To coordinate regarding the changing service requirements of the
Customer and the course of action the Parties will pursue to meet such requirements;
d.) To coordinate regarding facility construction and maintenance as
appropriate, and to the extent agreed by the Parties; and
e.) To perform such other duties as may be specifically identified in, or
required for the proper function of this Agreement.
3.7.2 Administrative Committee Meetings: The Administrative Committee shall meet or otherwise conference, at least once
each calendar year, or at the request of either Party upon reasonable notice, and each
Party may place items on the meeting agenda. All proceedings of the Administrative
Committee shall be conducted by its members taking into account the exercise of Good
Utility Practice. If the Administrative Committee is unable to agree on any matter coming
under its jurisdiction, that matter shall be resolved pursuant to section 12.0 of the AEP
Tariff, or otherwise, as mutually agreed by Customer and Company.
Article 4 Customers Load Capacity and Other Obligations t Customer’s Load, Capacity and Other Obligations to the RTO Each Load Serving Entity (“LSE”), as that term is used by the PJM RTO, is
responsible for complying with all RTO requirements. Unless otherwise agreed, AEP
shall have only such responsibilities to assist Customer in meeting its obligations to the
RTO, as shall be required pursuant to the PJM Tariff and this Agreement. AEP shall
cooperate with PJM and Customer (or Customer designated Scheduling Agent) to the
extent necessary and appropriate to insure that data is available to PJM for Customer’s
hourly energy assignment, and peak load contributions for use in calculating transmission
charges and generation capacity obligations as discussed below. AEP will also provide
Customer the information provided to PJM annually under sections 4.1 and 4.2.
Customer may also arrange to receive the information provided to PJM on a daily basis
pursuant to section 4.3 and 4.4, as applicable, provided Customer and Company agree as
to the terms and fees for such service.
4.1 Network Service Peak Load (NSPL) Determinatio Network Service Peak Load (NSPL) Determinations: AEP shall provide to PJM each year in December, the Network Service Peak
Load (NSPL) of each LSE within the AEP pricing one in the hour of the PJM peak load
(1CP) for the twelve (12) consecutive months ending on October 31 of the year prior to
the calendar year during which the NSPL will be used. The network service peak load
ratio share shall be used by PJM as the transmission service billing determinant for
transmission service charges and annual FTR allocations. If the basis of NSPL and FTR
allocation determinations is changed by PJM, AEP shall cooperate with PJM and the
Customer to the extent necessary and appropriate to make available such data as is
needed.
4.2 Peak Load Contribution (PLC): AEP shall provide to PJM the peak load contribution (PLC) of each LSE in the
AEP pricing zone on a forecasted annual and on a day-ahead basis for the purpose of
calculating the LSE’s capacity obligation to serve its load. Each year PJM will inform
AEP of the day and hour of the five highest PJM unrestricted daily peaks (5CP) for the
twelve months ending October 31 of such year. AEP will then determine each LSE’s
contribution to the 5CP loads of the AEP control zone. This load ratio will be applied to
the forecasted AEP control zone load, adjusted for weather normalization and forecasted
load growth, to determine each LSE’s peak load contribution. PJM will utilize this
information in the development of each LSE’s capacity obligation. If the basis used by
PJM for PLC and relative determinations of customer load obligations is changed by
PJM, AEP shall cooperate with PJM and the customer to the extent necessary and
appropriate to make available such data as is needed.
4.3 Hourly Energy Requirements: AEP will also provide to PJM each working day, via PJM’s eSchedule system, the
initial hourly energy assignment (load plus losses) for each LSE in the AEP zone. This
data will generally be supplied by 5:00 PM eastern prevailing time (EPT) on Monday for
the prior Friday, Saturday and Sunday and by 1:00 PM EPT Tuesday through Friday or
the prior weekday. PJM will use this data to calculate each LSE’s capacity obligation for
each hour for the next day. Unless PJM has recognized a transfer of load obligation from
or to the Customer (LSE) to or from another Customer (LSE), the capacity obligation will
not change daily. Within two months of the end of each settlement month, AEP shall
validate the LSE’s hourly load and submit the changes via the eSchedule system, as
appropriate, for PJM to resettle the respective LSE’s account.
If the basis used by PJM to receive hourly energy assignments for the LSE, or to
calculate each LSE’s capacity obligation for each hour for the next day, is changed by
PJM, AEP shall cooperate with PJM and the Customer to the extent necessary and
appropriate to make available such data as needed.
4.4 Behind the Meter Generation: AEP shall cooperate with PJM and parties operating generators connected behind
load metering, such that PJM will receive such generator output meter information it
requires for the following two categories of generators behind the meter operating within
the AEP Zone:
4.4.1 Generators that do not participate in the PJM Markets: The generating party shall comply with the PJM generator data requirements for
generators that do not participate in the PJM Markets.
4.4.2 Generators that do participate in the PJM Markets: The generating party shall comply with the PJM interconnected generator data
requirements for the generators that participate in the PJM Markets.
4.5 Post Settlement of PJM Inadvertent Energy Allocation: PJM will dispatch generators for supplying inadvertent energy payback to the
Eastern Interconnection and recover such costs from the PJM region-wide load. The
summation of hourly inadvertent energy (total monthly) charges assigned by PJM to the
AEP control zone each month will be allocated to each LSE in the AEP control zone in
proportion to the LSE’s NSPL or by such other method as the FERC approves. AEP will
provide each customer the data necessary for the customer to verify the charges for
Inadvertent Energy settlement that are passed through to the customer from the PJM
invoice.
4.6 LMP Node/Zone Aggregator: LSEs in PJM may choose to have PJM use the zonal average load weighted LMP
used as the basis for energy delivery pricing or request a specific load bus aggregate prior
to the annual FTR allocation processes. It is the responsibility of the LSE to contact PJM
in a timely manner if a specific load aggregation is desired. PJM may in turn request
AEP to work with the LSE to determine the appropriate configuration of the load bus
aggregate. AEP will cooperate with Customer in order to derive an LMP load bus
aggregate, using existing transmission planning case studies to determine the percent of
the load at each load bus that is served by the LSE. If AEP determines that existing
studies are not sufficient and additional study development is needed to satisfy the
Customer’s request, the Customer may be asked to execute a study agreement and
reimburse AEP for the study-related costs. The LSE may provide such data to PJM and,
based on results from PJM, the LSE will choose whether to utilize the aggregate or the
AEP zonal weighted average LMP price.
Article 5 General
5.1 Billing, Payments, and Disputes: As a convenience, and so long as PJM offers such accommodations, monthly
charges for Delivery Point power factor, distribution services, meter and related meter
reading and data processing services as specified in Attachment 1 hereto will be included
in the monthly transmission service invoice issued by RTO. Customer shall pay the
monthly delivery charges invoiced by the RTO in accordance with PJM Tariff and with
respect to such charges customer shall be subject to AEP Tariff creditworthiness
provisions. If the Customer receives Transmission Service through an agreement with a
third party that contracts with PJM, the charges for Delivery Services hereunder may be
invoiced to the third party subject to PJM’s accommodations and applicable provision of
the PJM Tariff or to the Customer, subject to applicable provision of the AEP Tariff.
AEP shall invoice the Customer and the Customer shall reimburse AEP for its
costs associated with any facility construction, operation and maintenance or, repair
provided under this Agreement in accordance with the AEP Tariff, Section 7 (“Billing
and Payments”). Any disputes as to such invoices shall be resolved pursuant to the
provisions of Section 12 (“Dispute Resolution Procedures”) of the AEP Tariff.
5.2 Taxes on Contributions in Aid of Construction: When the Customer funds the construction of AEP-owned facilities pursuant to a
contribution in-aid of construction (“CIAC”), the Customer also shall reimburse AEP for
the tax effect of such CIAC (a “Tax Effect Recovery Factor” or “TERF”), where such
payment is considered taxable income and subject to income tax under the Internal
Revenue Service (IRS) and/or a state department of revenue (State) requirements. The
TERF shall be computed consistent with the methodology set forth in Ozark Gas
Transmission Corp., 56 F.E.R.C 61,349 as reflected in the following formula: TERF =
(Current Tax Rate x (Gross Income Amount - Present Value of Tax Depreciation))/(1-
Current Tax Rate). The Present Value Depreciation Amount shall be computed by
discounting AEP’s anticipated tax depreciation deductions with respect to the constructed
property by AEP’s current weighted average cost of capital. If, based on current law,
AEP determines such contribution by the Customer shall not be taxable, AEP will not
charge a TERF; however, in the event that such contribution is later determined by the
IRS or state tax authority to be taxable, the Customer shall reimburse AEP, the amount of
the TERF, including any interest and penalty charged to AEP by the IRS and/or state.
Such reimbursement is due within thirty (30) calendar days of the date upon which AEP
notifies the Customer of such determination.
At Customer's request and expense, AEP shall file with the IRS a request for a
private letter ruling as to whether any CIAC paid, or to be paid, by Customer to AEP is
subject to federal income taxation. Customer will prepare the initial draft of the request
for a private letter ruling, and will certify under penalties of perjury that all facts
represented in such request are true and accurate to the best of Customer's knowledge.
AEP and Customer shall cooperate in good faith with respect to the submission of such
request. AEP shall keep Customer fully informed of the status of such request for a
private letter ruling and shall execute either a privacy act waiver or a limited power of
attorney, in a form acceptable to the IRS that authorizes Customer to participate in all
discussions with the IRS regarding such request for a private letter ruling. AEP shall
allow Customer to attend all meetings with IRS officials about the request and shall
permit Customer to prepare the initial drafts of any follow-up letters in connection with
the request.
If customer shall have reimbursed AEP for the TERF, upon request by Customer
and at Customer’s expense, AEP shall contest the taxability of such CIAC; provided,
however, that AEP shall not be required to contest such taxability if AEP waives the
payment by Customer of any amount that might otherwise be payable by Customer under
this Agreement in respect of such determination.
5.3 Indemnity: To the extent permitted by law, each Party shall indemnify and save harmless the
other Party and its directors, trustees, officers, employees, and agents from and against
any loss, liability, cost, expenses, suits, actions, claims, and all other obligations arising
out of injuries or death to persons or damage to property caused by or in any way
attributable to the Delivery Point(s) and/or distribution facilities covered by this
Agreement, except that a Party’s obligation to indemnify the other Party and its directors,
trustees, officers, employees, and agents shall not apply to any liabilities arising solely
from the other Party’s or its directors’, trustees’, officers’, employees’, or agents’
negligence, recklessness or intentional misconduct or that portion of any liabilities that
arise out of the other Party’s or its directors’, trustees’, officers’, employees’, or agents’
contributing negligent, reckless or intentional acts or omissions.
5.4 Effective Date and Term of Agreement:
This Agreement shall become effective and shall become a binding obligation of
the parties on the date on which the last of the following events shall have occurred
(effective date):
(a) AEP and each shall have caused this Agreement to be
executed by their duly authorized representatives and each shall have furnished to the
other satisfactory evidence thereof or requested AEP to file an unexecuted service
agreement within thirty (30) calendar days of Customer’s request for such a filing.
(b) This Agreement has been accepted for filing and made effective by order
of the Commission under the Federal Power Act, in which case the effective date of this
Agreement shall be as specified in the said Commission order. However, if the
Commission or any reviewing court, in such order or in any separate order, suspends this
Agreement or any part thereof, institutes an investigation or proceeding under the
provisions of the Federal Power Act with respect to the justness and reasonableness of the
provisions of this Agreement or any other agreement referred to or contemplated by this
Agreement, or imposes any conditions, limitations or qualifications under any of the
provisions of the Federal Power Act which individually or in the aggregate are
determined by AEP or to be adverse to it, then AEP and promptly
renegotiate the terms of this Agreement in light of such Commission or court action.
Each Party shall use its best efforts to take or cause to be taken all action requisite to the
end that this Agreement shall become effective as provided herein at the earliest
practicable date.
(c) The initial term of this Agreement shall continue for one year after the
date the Agreement becomes effective. Thereafter, this Agreement shall automatically
renew for successive terms of one year each unless either Party elects to terminate the
Agreement by providing written notice of termination to the other Party at least ninety
(90) calendar days prior to the start of any renewal term.
5.5 Regulatory Authorities: This Agreement is made subject to the jurisdiction of any governmental authority
or authorities having jurisdiction in the premises. Nothing contained in this Agreement
shall be construed as affecting in any way the right of a Party, as the case may be, to
unilaterally file with the Federal Energy Regulatory Commission an application for a
change in rates, charges, classification, service or any rule, regulation or contract relating
thereto under Section 205 or 206 of the Federal Power Act and pursuant to the
Commission’s Rules and Regulations promulgated thereunder.
5.6 Assignment: It is mutually understood and agreed that this Agreement contains the entire
understanding between the Parties, that there are no oral, written, implied or other
understandings or agreements with respect to the work covered hereunder. This
Agreement shall be binding upon and inure to the benefit of the Parties hereto, as well as
their respective successors and/or assigns. However, neither Party shall assign, transfer
or sublet any of the rights hereby granted without the prior written consent of the other
Party.
Article 6 Notices
6.1 Any notice given pursuant to this Agreement shall be in writing as follows:
If to the AEP: American Electric Power Service Corporation Managing Director, Regulated Tariffs 1 Riverside Plaza Columbus, Ohio 43215-2373
If to Customer ________ ________________________
________________________ ________________________ ________________________
6.2 The above names and addresses of any Party may be changed at any time by
notice to the other Party.
6.3 This Agreement shall inure to the benefit of and be binding upon the successors
and assigns of the Parties. This Agreement shall not be assigned by either Party without
the written consent of the other, which consent shall not be unreasonable withheld.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be duly
executed.
By:________________________________
Title: ______________________________
Date: ______________________________
American Electric Power Service Corp.
By ________________________________
Title: ______________________________
Date: ______________________________
Attachment 1 List of AEP Power Delivery Points and Associated Charges
Attachment 2 One-line Diagrams of Delivery Points
Note: Drawings for new and/or updates to existing Delivery Points will be part of
Attachment 2 in future FERC filings.
Attachment 3
Facilities, Operation, Maintenance and Repair Services When AEP asserts an operational or system security necessity requiring that AEP
provide operation and maintenance (“O&M”) and repair services for Customer-owned
equipment at any Delivery Point, the customer shall have the right to request that AEP
perform such services under the provisions herein below and on the cost of service basis
reflected in the Formula Rate contained in Attachment 4. When an existing O&M
agreement between the Parties which also utilizes a Formula Rate expires or is terminated
by mutual agreement or otherwise, unless otherwise agreed, the services provided by
AEP under such agreement, if they continue, shall be brought under this Agreement.
Service pursuant to this Attachment 3 shall be based on terms and conditions
described below:
1. This Operation and Maintenance and Repair Agreement shall cover the delivery
and/or switching facilities currently listed on Exhibit A, attached hereto and made
a part hereof, and any other delivery and/or switching facilities that are brought
hereunder in accordance with the procedure hereinafter provided.
2. Subject to the terms and conditions contained herein, AEP agrees to test, maintain
and repair the facilities in Exhibit A so as to assure the satisfactory and reliable
operation of said facilities, all in accordance with good industry standards and
practice. AEP further agrees to perform any additional testing, maintenance,
repairs and/or replacements requested from time to time by Customer.
3. AEP agrees to furnish all supervision, labor, tools conveyances and equipment
necessary for carrying out the work covered for facilities described in Exhibit A
and further agrees to furnish all materials required to do the work except those
materials that Customer feels are in its best interests to furnish.
4. All work shall be performed during the standard 40-hour work week, but, in the
event that operating or emergency conditions warrant, overtime work can be
authorized either in writing or verbally (in the case of emergency work) by
Customer’s representative.
5. AEP will render invoices to Customer, on forms acceptable, at suitable intervals
to be mutually agreed upon by the parties.
6. Customer agrees to promptly pay AEP the actual costs of any and all testing,
maintenance, repairs and/or replacements performed pursuant to the terms and
conditions of this Services Agreement, including the costs associated with labor,
materials, equipment, overheads, taxes and other services incurred by AEP in
performing the work, when presented with satisfactory evidence of the cost of
such work.
7. The facilities covered in this Agreement may be extended or otherwise modified
by attaching one or more numbered supplemental Facility Requests (attached
herewith as Exhibit A No.1), which show the additional facilities or changed
equipment to be thereafter covered by this Contract. Such supplements shall be
effective as of the date of final execution thereof and shall be attached to all
executed copies of this Agreement.
Pro-forma Exhibit A
FACILITY REQUEST(S)
No._______________
Date ______________ Customer (Customer Name) hereby applies to AEP for delivery and switching facility(s)
described below and shown in the attached drawing(s) in Attachment 2. In exchange for
CUSTOMER’S promise to pay the actual cost of each facility listed below, CUSTOMER
requests AEP to construct, install, operate, test, repair and/or maintain the facility(s) to be
located in the following circuits of AEP’s transmission system:
CUSTOMER understands and agrees that said facilities are to be constructed, installed,
owned, operated, tested and/or maintained in the manner and under the conditions set
forth in the attached agreement, which was entered into by CUSTOMER and AEP on
___________________, 20__.
IN WITNESS WHEREOF, each of the Parties has caused this Service and Repair
Agreement to be duly executed
CUSTOMER NAME
By: __________________________________________
Title: __________________________________________
Date: __________________________________________
AMERICAN ELECTRIC POWER SERVICE CORPORATION
As Agent for the AEP Operating Companies
By: ________________________________________
Title: Manager, Transmission and Interconnection Services
Date: _________________________________________
Attachment 4
AMERICAN ELECTRIC POWER FORMULA RATE FOR FACILITY CONSTRUCTION
OPERATION AND MAINTENANCE General The formula rate contained in this document applies when construction, operation and/or
maintenance activities are performed for non-AEP Parties, under circumstances
precluding the charging of a profit margin. The American Electric Power Companies
(AEP) will recover costs for such operation and maintenance activities through bills
which reflect the cost AEP has incurred in six categories, namely: 1) materials, 2) labor,
3) equipment, 4) outside services, 5) engineering and administration, and 6) taxes.
AEP charges its costs for construction, operation and maintenance activities on
behalf of others to special work orders which accumulate the costs to be billed. As a
result of these accounting procedures, the charges billed to non-AEP Parties are not
reflected in AEP's transmission, operation, maintenance, or plant accounts.
However, the costs which AEP incurs and bills in such cases are the kinds of costs
which would be assignable to the following FERC Uniform System of Accounts if they
were incurred in connection with AEP's owned property:
Operation and Maintenance - Transmission Operation and Maintenance Expenses 560 - Operation Supervision and Engineering 562 - Station Expenses 563 - Overhead Line Expenses 566 - Miscellaneous Transmission Expenses 568 - Maintenance Supervision and Engineering 569 - Maintenance of Structures 570 - Maintenance of Station Equipment
571 - Maintenance of Overhead Lines Construction - Transmission Plant Costs 352 - Structures and Improvements 353 - Station Equipment 397 - Communications Equipment 108 - Accumulated Provision for Depreciation All Activities - Administrative, General and Other Expenses 920 - Administrative and General Salaries 408 - Taxes Other Than Income Taxes The charges billed for maintenance in each of the previously identified six categories are
discussed in order below.
1 Materials Materials charges are made in four sub-categories: 1) direct material costs (DM),
which may be delivered direct from vendors to the job site (VDM) or issued from
company stores (SDM), 2) purchasing expenses (PE), 3) stores expenses (SE), and 4)
exempt minor materials (EM). The latter three costs are charged using material loading
rates.
Direct material costs are vendor invoiced charges for items, other than exempt
minor materials, which are used for Generating Company maintenance. Purchasing
expenses are material overhead costs incurred in selecting and ordering materials. Stores
expenses are the costs of performing the stores function. Exempt minor materials are low
cost expendable materials, supplies, and hand tools used in Transmission and Distribution
construction, maintenance, or operations.
Material items which are delivered direct from the vendor to the job site (VDM)
are charged at cost, plus a purchasing loading rate (plr) of 1%, up to a maximum of $150
per invoice. Materials issued from company storerooms for individual work orders
(SDM) are charged at cost, plus a combined stores/purchasing loading rate (slr) and an
exempt minor materials loading rate (mlr).
Projected annual stores and exempt minor materials costs are divided by projected
annual costs of stores issued materials (SDM + EM) to determine projected stores and
exempt minor materials loading rates. The rates are reviewed monthly and adjusted as
required in order to clear current year stores expense and exempt minor materials costs to
the accounts charged with the materials issued.
In symbolic format, the charges for materials are calculated as follows:
M = DM + [VDM x (plr), up to $150/bill] + SDM x (1 + (mlr)) x (slr)
2 Labor Labor is charged to Generating Company maintenance work orders in three parts -
direct labor (DL), fringe labor costs (FL), and miscellaneous out-of-pocket employee
expenses (ME). Direct labor charges reflect the actual work hours (whr) and basic hourly
rates of pay (hrp) for the personnel that are directly involved; i.e., DL = (whr) x (hrp).
Fringe labor costs for vacation, holiday, sick leave, and other paid time away, plus
payroll taxes, insurance, workers' compensation, pension, and savings plan expenses are
recovered through labor loading rates (llr) which are developed by dividing fringe labor
costs by earned payroll. The labor loading rates are reviewed monthly and adjusted, as
needed, to clear fringe labor costs yearly.
In symbolic format, the charges for labor are calculated as follows:
L = DL + FL + ME = DL x (1 + llr) + ME
3 Equipment
Equipment (E), primarily vehicles, used in the performance of maintenance are
charged based on actual hours of usage (aeu) and hourly equipment cost rates (ecr). Cost
of purchasing, leasing, and operating equipment, by equipment class, are collected in
clearing accounts and divided by total hours of usage by class to develop the equipment
cost rates. Equipment cost rates are reviewed quarterly and adjusted, as needed, to clear
the cost of equipment.
In symbolic format, equipment charges are calculated as follows:
E = (aeu) x (ecr)
4 Outside Services The actual amount of invoices received from vendors for restorative and other
maintenance services (S) performed by third parties for AEP on behalf of the Generating
Company are charged in maintenance billings by AEP.
5 Engineering and Administration Engineering and administrative overhead loading rates are used to allocate
engineering, supervision, and administrative overhead costs not assigned to specific
project work orders. AEP uses separate loading rates for AEP Service Corporation
engineering (SCEt&d) and operating company construction overhead costs (CCO). A
complete description of the costs recovered through the loading rates is provided in Note
1 to page 218 of each AEP Company's FERC Form-1 Report. A copy of that note is
included as the last page in this Appendix G.
As the description of Construction Overhead Procedure shows, the CCO and
SCEt&d loading rates (cclr and sclrt&d, respectively) are derived in the normal course of
business for the purpose of capturing the portions of AEP Service Corporation
engineering and operating company construction overhead costs which are incurred in
connection with transmission and distribution (T&D) plan construction. The cclr and
sclrt&d are reviewed monthly and updated, as needed, to clear the respective engineering
and administrative overhead costs yearly.
In symbolic format, the engineering and administration overhead costs (O) are
calculated as follows:
O = CCO + SCEt&d
Where CCO = (M + L + E + S) x cclr
and SCEt&d = (M + L + E + S + CCO) x sclrt&d
6 Taxes
The total taxes charged to the Generating Company will be the sum of receipts
and other taxes incurred.
i.e.: T = RT + OT
Summary of Charges
The total Operation and Maintenance (O&M) charges under this Agreement in
symbolic form are:
O&M = M + L + E + S + O + T
Where M, L, E, S, O, and T are calculated as explained in Sections 1 through 6
above, respectively.
FERC FORM 1 12/31/95 < Page 218 >.
General Description of' Construction overhead Procedure:
1A. Engineering and Supervision (American Electric Power Service Corporation )
(a) Overheads “Engineering, Technical and Drafting Services” are
engineering services performed by the Engineering Department of
American Electric Power Service Corporation (AEPSC).
(b) In accordance with provisions of a service agreement between American
Electric Power Service Corporation (AEPSC) and the respondent,
approved by the Securities and Exchange Commission February 19, 1981,
salaries, expenses and overheads of AEPSC personnel directly relating to
construction activities are collected by means of a work order system and
billed to the respondent as:
(1) Identifiable costs, generally relating to major construction projects,
for which timekeeping and other specific cost identification is
economically feasible, and
(2) Non-identifiable costs, generally relating to numerous small
construction projects, for which timekeeping and other specific cost
identification are not economically feasible.
(c) Charges billed by AEPSC as (b)(1) above are charged directly by
respondent to the applicable specific construction projects. Charges billed
by AEPSC as (b)(2) above are allocated to all applicable construction
projects proportionate to the direct costs charged to such projects.
(d) A uniform rate is applied to all subject construction expenditures.
(e) See (d) above.
(f) See (c) above.
1B. Company Construction Overheads in its own Operating Division, Engineering
Department and System Office Departments
(a) Charges representing cost of Company's Engineering Supervision and
related drafting and technical work.
(b) On basis of time and work studies.
(c) Spread to accounts in proportion to dollar value on construction for those
classes of construction accounts to which these overheads are considered
to be applicable.
(d) For each class of overheads the same percentage is used for all types of
construction.
(e) Not applicable. See (d) above.
(f) Shown on page 217.
1C. Company Construction Overheads in Administrative and General Departments
(a) Proportion of Administrative and General Expenses representing salaries
and expenses of General Office and Managerial employees applicable to
construction.
(b) Partly on basis of time and work studies.
(c) Spread to accounts in proportion to dollar value of construction for those
classes of construction accounts to which these overheads are considered
to be applicable.
(d) For each class of overheads the same percentage is used for all types of
construction.
(e) Not applicable. See (d) above.
(f) See note (c) above