Common use of Frequency Control Service Clause in Contracts

Frequency Control Service. Frequency Control Service is necessary to provide for the continuous balancing of resources (generation and interchange) with load and for maintaining system frequency at sixty cycles per second (60 Hz). Frequency Control Service is accomplished by committing on-line generation whose output is raised or lowered (predominantly through the use of automatic generation control equipment, the load-frequency control) and by other non-generation resources capable of providing this service to follow the moment-by-moment changes in load. The obligation to maintain this balance between resources and load lies with the Transmission Provider. The Transmission Provider shall offer this service when the Transmission Service is used to serve load within its Control Area. The Transmission Customer shall either purchase this service from the Transmission Provider or make alternative comparable arrangements to satisfy its Frequency Control Service obligation. 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. Generator Imbalance Service is provided when the output of a generating unit synchronized to the Transmission Provider’s system does not match the output that unit is scheduled to supply to (1) another Control Area or (2) a load in the Transmission Provider’s Control Area in a given hour. The Transmission Provider is required to offer Generator Imbalance Service insofar as it is able to do so using its resources or those made available to it if the Transmission Service is used to deliver energy from a generating unit synchronized to its Transmission System. The Transmission Customer must either purchase this service from the Transmission Provider or make comparable alternative arrangements, which may include using non-generation resources able to ensure this service, in order to fulfill its obligation to provide Generator Imbalance Service. The Transmission Provider may impose a penalty on the Transmission Customer for generator imbalances under this Schedule or for energy imbalances under Schedule 5 if either occurs during the same hour, but not for both, except if imbalances have a combined aggravating rather than offsetting effect. Generator Imbalance Service is charged based on the following deviation bandwidths: (i) charge for ±1.5% deviation (minimum of 2 MW) from the scheduled transaction (Band 1), applicable on an hourly basis to any generator imbalance arising from one or more of the Transmission Customer’s scheduled transactions, payable at the end of each month and equalling 100% of the incremental/decremental price, (ii) charge for the portion deviating from the scheduled transaction by over ±1.5% to ±7.5% (or over 2 to 10 MW) (Band 2), applicable on an hourly basis to any generator imbalance arising from one or more of the Transmission Customer’s scheduled transactions, payable at the end of each month and equalling 110% of the incremental price or 90% of the decremental price, and (iii) charge for the portion deviating from the scheduled transaction by more than ±7.5% (or over 10 MW) (Band 3), applicable on an hourly basis to any generator imbalance arising from one or more of the Transmission Customer’s scheduled transactions and equalling 125% of the incremental price or 75% of the decremental price, except that intermittent resources shall be exempt from Band 3 charges and shall pay Band 2 charges on all deviations exceeding Band 1. For the purposes of this Schedule, an "intermittent resource" is an electricity generating unit with non-dispatchable output, driven by a non-storable source of energy and which thus cannot respond either to variations in system load or to security-related transmission constraints. Notwithstanding the foregoing, deviations from scheduled transactions arising from instructions issued by the Transmission Provider shall not be subject to the charges above; the resulting amounts instead being settled at the end of the month by a payment equal to 100% of the incremental/decremental price. Such instructions may be related to correcting a drop in frequency, responding to a reserve sharing event or shifting generation to relieve congestion. 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. Energy Imbalance Service – Delivery is provided when a difference occurs between the scheduled delivery and the actual delivery of energy to a load located within the Transmission Provider's Control Area over a single hour. The Transmission Provider shall offer this service if the Transmission Service is used to serve load within its Control Area. The Transmission Customer must either purchase this service from the Transmission Provider or make comparable alternative arrangements, which may include using non-generation resources able to ensure this service, in order to fulfill its obligation to provide Energy Imbalance Service. The Transmission Provider may impose a penalty on the Transmission Customer for energy imbalances under this Schedule or for generator imbalances under Schedule 4 if either occurs during the same hour, but not for both, except if the imbalances have a combined aggravating rather than offsetting effect. Energy Imbalance Service is charged based on the following deviation bandwidths: