ATTACHMENT 2
SECOND COMPOSITE
RESTATED
NEW ENGLAND
POWER POOL AGREEMENT
(As amended through the Fifty-First Agreement
Amending New England Power Pool Agreement)
TABLE OF CONTENTS
PART ONE INTRODUCTION
SECTION 1 DEFINITIONS
1.1 Adjusted Load
1.2 Adjusted Monthly Peak
1.3 Adjusted Net Interchange
1.3A Administrative Procedures
1.4 AGC Capability
1.5 AGC Entitlement
1.6 Agreement
1.7 Annual Transmission Revenue Requirements
1.8 Automatic Generation Control or AGC
1.8A Balloting Agent
1.9 Bid Price
1.10 Commission
1.11 Control Area
1.12 Curtailment
1.13 Direct Assignment Facilities
1.14 Dispatch Price
1.15 EHV PTF
1.16 Electrical Load
1.17 Eligible Customer
1.17A End User Participant
1.18 Energy
1.19 Energy Entitlement
1.20 Entitlement
1.21 Entity
1.22 Excepted Transaction
1.23 [Deleted.]
1.24 Facilities Study
1.25 Firm Contract
1.26 First Effective Date
1.27 Good Utility Practice
1.28 HQ Contracts
1.29 HQ Energy Banking Agreement
1.30 HQ Interconnection
1.31 HQ Interconnection Agreement
1.32 HQ Interconnection Capability Credit
1.33 HQ Interconnection Transfer Capability
1.34 HQ Net Interconnection Capability Credit
1.35 HQ Phase I Energy Contract
1.36 HQ Phase I Percentage
1.37 HQ Phase I Transfer Credit
1.38 HQ Phase II Firm Energy Contract
1.39 HQ Phase II Gross Transfer Responsibility
1.40 HQ Phase II Net Transfer Responsibility
1.41 HQ Phase II Percentage
1.42 HQ Phase II Transfer Credit
1.43 HQ Use Agreement
1.44 Installed Capability
1.45 Installed Capability Entitlement
1.46 Installed Capability Responsibility
1.47 Installed System Capability
1.48 Interchange Transactions
1.49 Internal Point-to-Point Service
1.50 Interruption
1.51 ISO
1.52 Kilowatt
1.52A Liaison Committee
1.53 Load
1.54 Local Network
1.55 Local Network Service
1.56 Lower Voltage PTF
1.57 Market Products
1.57A Market Rules
1.58 [Deleted.]
1.58A Markets Committee
1.59 Monthly Peak
1.60 NEPOOL
1.61 NEPOOL Control Area
1.62 NEPOOL Installed Capability
1.63 NEPOOL Installed Capability Responsibility
1.64 NEPOOL Objective Capability
1.64A NEPOOL Market
1.64B NEPOOL System Rules
1.64C NERC
1.65 New Unit
1.66 Non-Participant
1.66A NPCC
1.66B OASIS
1.67 Operable Capability
1.68 [Deleted]
1.69 [Deleted
1.70 [Deleted
1.71 Operating Reserve
1.72 Operating Reserve Entitlement
1.73 Other HQ Energy
1.74 Participant
1.74A Participants Committee
1.75 Pool-Planned Facility
1.76 Pool-Planned Unit
1.77 Power Year
1.78 Prior NEPOOL Agreement
1.79 Proxy Unit
1.80 PTF
1.80A Publicly Owned Entity
1.81 [Deleted.]
1.82 Regional Network Service
1.83 [Deleted.]
1.84 [Deleted.]
1.85 Related Person
1.85A Reliability Committee
1.85B Reliability Standards
1.85C Review Board
1.86 Scheduled Dispatch Period
1.87 Second Effective Date
1.87A Sector
1.88 Service Agreement
1.89 Summer Capability
1.90 Summer Period
1.91 System Contract
1.92 System Impact Study
1.93 System Operator
1.94 Target Availability Rate
1.95 Tariff
1.95A Tariff Committee
1.95B Technical Committees
1.96 Third Effective Date
1.97 Through or Out Service
1.98 Transition Period
1.99 Transmission Customer
1.99A Transmission Owner
1.99B Transmission Owners Committee
1.100 Transmission Provider
1.101 Unit Contract
1.102 [Deleted.]
1.103 Winter Capability
1.104 Winter Period
1.105 10-Minute Spinning Reserve
1.106 10-Minute Non-Spinning Reserve
1.107 30-Minute Operating Reserve
1.108 [Deleted.]
1.109 Modification of Certain Definitions When a Participant Purchases a
Portion of Its Requirements from Another Participant Pursuant to Firm Contract
SECTION 2 PURPOSE; EFFECTIVE DATES
2.1 Purpose
2.2 Effective Dates; Transitional Provisions
SECTION 3 MEMBERSHIP
3.1 Membership
3.2 Operations Outside the Control Area
3.3 Lack of Place of Business in New England
3.4 Obligation for Deferred Expenses
3.5 Financial Security
SECTION 4 STATUS OF PARTICIPANTS
4.1 Treatment of Certain Entities as Single Participant
4.2 Participants to Retain Separate Identities
SECTION 5 NEPOOL OBJECTIVES AND COOPERATION BY PARTICIPANTS
5.1 NEPOOL Objectives
5.2 Cooperation by Participants
PART TWO GOVERNANCE
SECTION 6 COMMITTEE ORGANIZATION AND VOTING
6.1 Principal Committees
6.2 Sector Representation
6.3 Appointment of Members and Alternates
6.4 Term of Members
6.5 Regular and Special Meetings
6.6 Notice of Meetings
6.7 Attendance
6.8 Quorum
6.9 Voting Definitions
6.10 Voting On Proposed Actions
6.11 Voting On Amendments
6.12 Designated Representatives and Proxies
6.13 Limits on Representatives
6.14 Adoption of Bylaws
6.15 Joint Meetings of Technical Committees
SECTION 7 PARTICIPANTS COMMITTEE
7.1 Officers
7.2 Adoption of Budgets
7.3 Establishing Reliability Standards
7.4 Appointment and Compensation of NEPOOL Personnel
7.5 Duties and Authority
7.6 Attendance of Participants at Committee Meeting
7.7 Appeal of Actions to Review Board
SECTION 8 RELIABILITY COMMITTEE
8.1 Officers
8.2 Notice to Members and Alternates of Participants Committee
8.3 Voting; Appeal of Actions
8.4 Responsibilities
8.5 Establishment of Subcommittees and Task Forces
8.6 Further Powers and Duties
SECTION 9 TARIFF COMMITTEE
9.1 Officers
9.2 Notice to Members and Alternates of Participants Committee
9.3 Voting; Appeal of Actions
9.4 Responsibilities
9.5 Establishment of Subcommittees and Task Forces
9.6 Further Powers and Duties
SECTION 10 MARKETS COMMITTEE
10.1 Officers
10.2 Notice to Members and Alternates of Participants Committee
10.3 Voting; Appeal of Actions
10.4 Responsibilities
10.5 Establishment of Subcommittees and Task Forces
10.6 Further Powers and Duties
10.7 Development of Rules Relating to Non-Participant Supply and
Demand-side Resources
SECTION 11 FURTHER RESTRUCTURING
SECTION 11A REVIEW BOARD
11A.1 Organization
11A.2 Composition
11A.3 Qualifications
11A.4 Term
11A.5 Meetings
11A.6 Bylaws
11A.7 Procedure on Appeal of Participant Committee Action or Failure to Take
Action
11A.8 Effect of a Review Board Decision
SECTION 11B TRANSMISSION OWNERS COMMITTEE
11B.1 Organization
11B.2 Membership
11B.3 Appointment of Members and Alternates
11B.4 Term of Members
11B.5 Regular and Special Meetings
11B.6 Notice of Meetings
11B.7 Attendance
11B.8 Votes
11B.9 Appointment of Task Forces or Working Groups
11B.10 Officers
11B.11 Adoption of Bylaws
11B.12 Review of Committee Actions
SECTION 11C LIAISON COMMITTEE
11C.1 Organization; Duties
11C.2 Membership
11C.3 Regular and Special Meetings
11C.4 Notice of Meetings
11C.5 Attendance
11C.6 Officers
PART THREE MARKET PROVISIONS
SECTION 12 INSTALLED CAPABILITY OBLIGATIONS AND PAYMENTS
12.1 Obligations to Provide Installed Capability.
12.2 Computation of Installed Capability Responsibilities
12.3 [Deleted].
12.4 Bids to Furnish Installed Capability
12.5 Consequences of Deficiencies in Installed Capability Responsibility
12.6 [Deleted].
12.7 Payments to Participants Furnishing Installed Capability
SECTION 13 OPERATION, GENERATION, OTHER RESOURCES,AND INTERRUPTIBLE CONTRACTS
13.1 Maintenance and Operation in Accordance with Good Utility Practice
13.2 Central Dispatch
13.3 Maintenance and Repair
13.4 Objectives of Day-to-Day System Operation
13.5 Satellite Membership
SECTION 14 INTERCHANGE TRANSACTIONS
14.1 Obligation for Energy, Operating Reserve and Automatic Generation Control
14.2 Obligation to Bid or Schedule, and Right to Receive Energy,
Operating Reserve and Automatic Generation Control
14.3 Amount of Energy, Operating Reserve and Automatic Generation
Control Received or Furnished
14.4 Payments by Participants Receiving Energy Service, Operating
Reserve and Automatic Generatin Control
14.5 Payments to Participants Furnishing Energy Service, Operating Reserve, and
Automatic Generation Control
14.6 Energy Transactions with Non-Participants
14.7 Participant Purchases Pursuant to Firm Contracts and System
Contracts
14.8 Determination of Energy Clearing Price
14.9 Determination of Operating Reserve Clearing Price
14.10 Determination of AGC Clearing Price
14.11 Funds to or from which Payments are to be Made
14.12 Development of Rules Relating to Nuclear and Hydroelectric Generating
Facilities, Limited-Fuel Generating Facilities, and Interruptible Loads
14.13 Dispatch and Billing Rules During Energy Shortages
14.14 Congestion Uplift.
14.15 Additional Uplift Charges.
PART FOUR TRANSMISSION PROVISIONS
SECTION 15 OPERATION OF TRANSMISSION FACILITIES
15.1 Definition of PTF
15.2 Maintenance and Operation in Accordance with Good Utility Practice
15.3 Central Dispatch
15.4 Maintenance and Repair
15.5 Additions to or Upgrades of PTF
SECTION 16 SERVICE UNDER TARIFF
16.1 Effect of Tariff
16.2 Obligation to Provide Regional Service
16.3 Obligation to Provide Local Network Service
16.4 Transmission Service Availability
16.5 Transmission Information
16.6 Distribution of Transmission Revenues
SECTION 17 POOL-PLANNED UNIT SERVICE
17.1 Effective Period
17.2 Obligation to Provide Service
17.3 Rules for Determination of Facilities Covered by Particular
Transactions
17.4 Payments for Uses of EHV PTF During the Transition Period
17.5 Payments for Uses of Lower Voltage PTF
17.6 Use of Other Transmission Facilities by Participants
17.7 Limits on Individual Transmission Charges
SECTION 17 A TRANSMISSION OWNERS RESERVED RIGHTS
17A.1
17A.2
17A.3
17A.4
17A.5
17A.6
17A.7
17A.8
PART FIVE GENERAL
SECTION 18 GENERATION AND TRANSMISSION FACILITIES
18.1 Designation of Pool-Planned Facilities
18.2 Construction of Facilities
18.3 Protective Devices for Transmission Facilities and Automatic
Generation Control Equipment
18.4 Review of Participant's Proposed Plans
18.5 Participant to Avoid Adverse Effect
SECTION 19 EXPENSES
19.1 Annual Fee.
19.2 NEPOOL Expenses
19.3 Restructuring Costs
SECTION 20 INDEPENDENT SYSTEM OPERATOR
SECTION 21 MISCELLANEOUS PROVISIONS
21.1 Alternative Dispute Resolution
21.2 Payment of Pool Charges; Termination of Status as Participant
21.3 Assignment
21.4 Force Majeure
21.5 Waiver of Defaults
21.6 Other Contracts
21.7 Liability and Insurance
21.8 Records and Information
21.9 Consistency with NPCC and NERC Standards
21.10 Construction
21.11 Amendment
21.12 Termination
21.13 Notices to Participants, Committees, Committee Members, or the System
Operator
21.14 Severability and Renegotiation
21.15 No Third-Party Beneficiaries
21.16 Counterparts
COMPOSITE RESTATED NEW ENGLAND POWER POOL AGREEMENT
THIS AGREEMENT dated as of the first day of September, 1971, as amended, was
entered into by the signatories thereto for the establishment by them of a bulk
power pool to be known as NEPOOL and is restated by an amendment dated as of
May 7, 1999.
In consideration of the mutual agreements and undertakings herein, the
signatories hereby agree as follows:
PART ONE
INTRODUCTION
SECT65535ON 1
DEFINITIONS
Whenever used in this Agreement, in either the singular or plural number, the
following terms shall have the following respective meanings (an asterisk (*)
indicates that the definition may be modified in certain cases pursuant to
Section 1.109):
1.1 Adjusted Load * (not less than zero) of a Participant during any
particular hour is the Participant's Load during such hour less any Kilowatts
received (or Kilowatts which would have been received except for the
application of Section 14.7(b)) by such Participant pursuant to a Firm
Contract.
1.2 Adjusted Monthly Peak of a Participant for a month is its Monthly Peak,
provided that if there has been a transfer between Participants, in whole or
part, of the responsibilities under this Agreement during such month pursuant
to a Firm Contract, the Adjusted Monthly Peak of each such Participant shall
reflect the effect of such transaction, but the Adjusted Monthly Peak of a
Participant shall not be changed from the Monthly Peak to reflect the effect of
any other transaction.
1.3 Adjusted Net Interchange of a Participant for an hour is (a) the Kilowatts
produced by or delivered to the Participant from its Energy Entitlements or
pursuant to arrangements entered into under Section 14.6, as adjusted in
accordance with uniform market operation rules approved by the Markets
Committee to take account of associated electrical losses, as appropriate,
minus (b) the sum of (i) the Electrical Load of the Participant for the hour,
and (ii) the kilowatthours delivered by such Participant to other Participants
pursuant to Firm Contracts or System Contracts, in accordance with the
treatment agreed to pursuant to Section 14.7(a), together with any associated
electrical losses.
1.3A Administrative Procedures are procedures adopted by the System Operator
in order to fulfill its responsibilities to apply and implement NEPOOL System
Rules.
1.4 AGC Capability of an electric generating unit or combination of units is
the maximum dependable ability of the unit or units to increase or decrease
the level of output within a time frame specified by market operation rules
approved by the Markets Committee, in response to a remote direction from the
System Operator in order to maintain currently proper power flows into and out
of the NEPOOL Control Area and to control frequency.
1.5 AGC Entitlement is (a) the right to all or a portion of the AGC
Capability of a generating unit or combination of units to which an Entity is
entitled as an owner (either sole or in common) or as a purchaser, reduced by
(b) any portion thereof which such Entity is selling pursuant to a Unit
Contract, and (c) further reduced or increased, as appropriate, to recognize
rights to receive or obligations to supply AGC pursuant to Firm Contracts or
System Contracts in accordance with Section 14.7(a). An AGC Entitlement in a
generating unit or units may, but need not, be combined with any other
Entitlements relating to such generating unit or units and may be transferred
separately from the related Installed Capability Entitlement, Energy
Entitlement, or Operating Reserve Entitlements.
1.6 Agreement is this restated contract and attachments, including the
Tariff, as amended and restated from time to time.
1.7 Annual Transmission Revenue Requirements of a Participant's PTF or of all
Participants' PTF for purposes of this Agreement are the amounts determined in
accordance with Attachment F to the Tariff.
1.8 Automatic Generation Control or AGC is a measure of the ability of a
generating unit or portion thereof to respond automatically within a specified
time to a remote direction from the System Operator to increase or decrease
the level of output in order to control frequency and to maintain currently
proper power flows into and out of the NEPOOL Control Area.
1.8A Balloting Agent is the Secretary of the Participants Committee.
1.9 Bid Price is the amount which a Participant offers to accept, in a notice
furnished to the System Operator by it or on its behalf in accordance with the
market operation rules approved by the Markets Committee, as compensation for
(i) furnishing Installed Capability to other Participants pursuant to this
Agreement, or (ii) preparing the start up or starting up or increasing the
level of operation of, and thereafter operating, a generating unit or units to
provide Energy to other Participants pursuant to this Agreement, or (iii)
having a unit or units available to provide Operating Reserve to other
Participants pursuant to this Agreement, or (iv) having a unit or units
available to provide AGC to other Participants pursuant to this Agreement, or
(v) providing to other Participants Installed Capability, Energy, Operating
Reserve and/or AGC pursuant to a Firm Contract or System Contract in
accordance with Section 14.7.
1.10 Commission is the Federal Energy Regulatory Commission.
1.11 Control Area is an electric power system or combination of electric power
systems to which a common automatic generation control scheme is applied in
order to:
(l) 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 the criteria of the
applicable regional reliability council or the NERC; and
(4) provide sufficient generating capacity to maintain operating reserves in
accordance with Good Utility Practice.
1.12 Curtailment is a reduction in firm or non-firm transmission service in
response to a transmission capacity shortage as a result of system reliability
conditions.
1.13 Direct Assignment Facilities are facilities or portions of facilities
that are Non-PTF and are constructed for the sole use/benefit of a particular
Transmission Customer requesting service under the Tariff or Generator Owner
requesting an interconnection. Direct Assignment Facilities shall be
specified in a separate agreement with the Transmission Provider whose
transmission system is to be modified to include and/or interconnect with said
Facilities, shall be subject to applicable Commission requirements and shall
be paid for by the Transmission Customer or a Generator Owner in accordance
with the separate agreement and not under the Tariff.
1.14 Dispatch Price of a generating unit or combination of units, or a Firm
Contract or System Contract permitted to be bid to supply Energy in accordance
with Section 14.7(b), is the price to provide Energy from the unit or units or
Contract, as determined pursuant to market operation rules approved by the
Markets Committee to incorporate the Bid Price for such Energy and any loss
adjustments, if and as appropriate under such market operation rules.
1.15 EHV PTF are PTF transmission lines which are operated at 230 kV or above
and related PTF facilities, including transformers which link other EHV PTF
facilities, but do not include transformers which step down from 230 kV or a
higher voltage to a voltage below 230 kV.
1.16 Electrical Load (in Kilowatts) of a Participant during any particular
hour is the total during such hour (eliminating any distortion arising out of
(i) Interchange Transactions, or (ii) transactions across the system of such
Participant, or (iii) deliveries between Entities constituting a single
Participant, or (iv) other electrical losses, if and as appropriate), of
(a) kilowatthours provided by such Participant to its retail customers for
consumption, plus
(b) kilowatthours of use by such Participant, plus
(c) kilowatthours of electrical losses and unaccounted for use by the
Participant on its system, plus
(d) kilowatthours used by such Participant for pumping Energy for its
Entitlements in pumped storage hydroelectric generating facilities, plus
(e) kilowatthours delivered by such Participant to Non-Participants. The
Electrical Load of a Participant may be calculated in any reasonable manner
which substantially complies with this definition.
1.17 Eligible Customer is the following: (i) Any Participant that is engaged,
or proposes to engage, in the wholesale or retail electric power business is
an Eligible Customer under the Tariff. (ii) Any electric utility (including
any power marketer), Federal power marketing agency, or any other entity
generating electric energy for sale or for resale is an Eligible Customer
under the Tariff. 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 with which that entity is directly interconnected offer
the unbundled transmission service, or pursuant to a voluntary offer of such
service by the Transmission Provider with which that entity is directly
interconnected. (iii) Any end user taking or eligible to take unbundled
transmission service pursuant to a state requirement that the Transmission
Provider with which that end user is directly interconnected offer the
transmission service, or pursuant to a voluntary offer of such service by the
Transmission Provider with which that end user is directly interconnected, is
an Eligible Customer under the Tariff.
1.17A End User Participant is a Participant which is a consumer of
electricity in the NEPOOL Control Area that generates or purchases electricity
primarily for its own consumption or a non-profit group representing such
consumers.
1.18 Energy is power produced in the form of electricity, measured in
kilowatthours or megawatthours.
1.19 Energy Entitlement is (i) a right to receive Energy under a System
Contract or a Firm Contract in accordance with Section 14.7(a), or (ii) a
right to receive all or a portion of the electric output of a generating unit
or units to which an Entity is entitled as an owner (either sole or in common)
or as a purchaser pursuant to a Unit Contract, reduced by (iii) any portion
thereof which such Entity is selling pursuant to a Unit Contract. An Energy
Entitlement in a generating unit or units may, but need not, be combined with
any other Entitlements relating to such generating unit or units and may be
transferred separately from the related Installed Capability Entitlement,
Operating Reserve Entitlements, or AGC Entitlement.
1.20 Entitlement is an Installed Capability Entitlement, Energy Entitlement,
Operating Reserve Entitlement, or AGC Entitlement. When used in the plural
form, it may be any or all such Entitlements or combinations thereof, as the
context requires.
1.21 Entity is any person or organization whether the United States of America
or Canada or a state or province or a political subdivision thereof or a duly
established agency of any of them, a private corporation, a partnership, an
individual, an electric cooperative or any other person or organization
recognized in law as capable of owning property and contracting with respect
thereto that is either:
(a) engaged in the electric power business (the generation and/or
transmission and/or distribution of electricity for consumption by the public
or the purchase, as a principal or broker, of Installed Capability, Energy,
Operating Reserve, and/or AGC for resale); or
(b) a consumer of electricity in the NEPOOL Control Area that generates or
purchases electricity primarily for its own consumption or a non-profit group
representing such consumers.
1.22 Excepted Transaction is a transaction specified in Section 25 of the
Tariff for the applicable period specified in that Section, or in Sections 25A
and 25B of the Tariff.
1.23 [Deleted.]
1.24 Facilities Study is an engineering study conducted pursuant to this
Agreement or the Tariff by the System Operator and/or one or more affected
Participants to determine the required modifications to the NEPOOL Transmission
System, including the cost and scheduled completion date for such
modifications, that will be required to provide a requested transmission
service or interconnection.
1.25 Firm Contract is any contract, other than a Unit Contract, for the
purchase of Installed Capability, Energy, Operating Reserves, and/or AGC,
pursuant to which the purchaser's right to receive such Installed Capability,
Energy, Operating Reserves, and/or AGC is subject only to the supplier's
inability to make deliveries thereunder as the result of events beyond the
supplier's reasonable control.
1.26 First Effective Date is March 1, 1997.
1.27 Good Utility Practice shall mean 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 judgement 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 limited to a single, optimum practice, method or act to the exclusion
of others, but rather is intended to include acceptable practices, methods, or
acts generally accepted in the region.
1.28 HQ Contracts are the HQ Interconnection Agreement, the HQ Phase I Energy
Contract, and the HQ Phase II Firm Energy Contract.
1.29 HQ Energy Banking Agreement is the Energy Banking Agreement entered into
on March 21, 1983 by Hydro-Quebec, the Participants, New England Electric
Transmission Corporation and Vermont Electric Transmission Company, Inc., as
it may be amended from time to time.
1.30 HQ Interconnection is the United States segment of the transmission
interconnection which connects the systems of Hydro-Quebec and the
Participants. "Phase I" is the United States portion of the 450 kV HVDC
transmission line from a terminal at the Des Cantons Substation on the
Hydro-Quebec system near Sherbrooke, Quebec to a terminal having an
approximate rating of 690 MW at a substation at the ▇▇▇▇▇▇▇▇▇ Generating
Station on the Connecticut River. "Phase II" is the United States portion of
the facilities required to increase to approximately 2000 MW the transfer
capacity of the HQ Interconnection, including an extension of the HVDC
transmission line from the terminus of Phase I at the ▇▇▇▇▇▇▇▇▇ Station
through New Hampshire to a terminal at the ▇▇▇▇▇ ▇▇▇▇ Substation in
Massachusetts. The HQ Interconnection does not include any PTF facilities
installed or modified to effect reinforcements of the New England AC
transmission system required in connection with the HVDC transmission line and
terminals.
1.31 HQ Interconnection Agreement is the Interconnection Agreement entered
into on March 21, 1983 by Hydro-Quebec and the Participants, as it may be
amended from time to time.
1.32 HQ Interconnection Capability Credit of a Participant for a month during
the Base Term (as defined in Section 1.38) of the HQ Phase II Firm Energy
Contract is the sum in Kilowatts of (1)(a) the Participant's percentage share,
if any, of the HQ Phase I Transfer Capability times (b) the HQ Phase I
Transfer Credit, plus (2)(a) the Participant's percentage share, if any, of
the HQ Phase II Transfer Capability, times (b) the HQ Phase II Transfer
Credit. The Participants Committee shall establish appropriate HQ
Interconnection Capability Credits to apply for a Participant which has such a
percentage share (i) during an extension of the HQ Phase II Firm Energy
Contract, and (ii) following the expiration of the HQ Phase II Firm Energy
Contract.
1.33 HQ Interconnection Transfer Capability is the transfer capacity of the HQ
Interconnection under normal operating conditions, as determined in accordance
with Good Utility Practice. The "HQ Phase I Transfer Capability" is the
transfer capacity under normal operating conditions, as determined in
accordance with Good Utility Practice, of the Phase I terminal facilities as
determined initially as of the time immediately prior to Phase II of the
Interconnection first being placed in service, and as adjusted thereafter only
to take into account changes in the transfer capacity which are independent of
any effect of Phase II on the operation of Phase I. The "HQ Phase II Transfer
Capability" is the difference between the HQ Interconnection Transfer
Capability and the HQ Phase I Transfer Capability. Determinations of, and any
adjustment in, transfer capacity shall be made by the Markets Committee in
accordance with a schedule consistent with that followed by it in its
determination of the Winter Capability and Summer Capability of generating
units.
1.34 HQ Net Interconnection Capability Credit of a Participant at a particular
time is its HQ Interconnection Capability Credit at the time in Kilowatts,
minus a number of Kilowatts equal to (1) the percentage of its share of the HQ
Interconnection Transfer Capability committed or used by it for an
"Entitlement Transaction" at the time under the HQ Use Agreement, times (2)
its HQ Interconnection Capability Credit for the current month.
1.35 HQ Phase I Energy Contract is the Energy Contract entered into on March
21, 1983 by Hydro-Quebec and the Participants, as it may be amended from time
to time.
1.36 HQ Phase I Percentage is the percentage of the total HQ Interconnection
Transfer Capability represented by the HQ Phase I Transfer Capability.
1.37 HQ Phase I Transfer Credit is 60/69 of the HQ Phase I Transfer
Capability, or such other fraction of the HQ Phase I Transfer Capability as
the Participants Committee may establish.
1.38 HQ Phase II Firm Energy Contract is the Firm Energy Contract dated as of
October 14, 1985 between Hydro-Quebec and certain of the Participants, as it
may be amended from time to time. The "Base Term" of the HQ Phase II Firm
Energy Contract is the period commencing on the date deliveries were first
made under the Contract and ending on August 31, 2000.
1.39 HQ Phase II Gross Transfer Responsibility of a Participant for any month
during the Base Term of the HQ Phase II Firm Energy Contract (as defined in
Section 1.38) is the number in Kilowatts of (a) the Participant's percentage
share, if any, of the HQ Phase II Transfer Capability for the month times (b)
the HQ Phase II Transfer Credit. Following the Base Term of the HQ Phase II
Firm Energy Contract, and again following the expiration of the HQ Phase II
Firm Energy Contract, the Participants Committee shall establish an
appropriate HQ Phase II Gross Transfer Responsibility that shall remain in
effect concurrently with the HQ Interconnection Capability Credit.
1.40 HQ Phase II Net Transfer Responsibility of a Participant for any month is
its HQ Phase II Gross Transfer Responsibility for the month minus a number of
Kilowatts equal to (1) the highest percentage of its share of the HQ
Interconnection Transfer Capability committed or used by it on any day of the
month for an "Entitlement Transaction" under the HQ Use Agreement, times (2)
its HQ Phase II Gross Transfer Responsibility for the month.
1.41 HQ Phase II Percentage is the percentage of the total HQ Interconnection
Transfer Capability represented by the HQ Phase II Transfer Capability.
1.42 HQ Phase II Transfer Credit is 90/131 of the HQ Phase II Transfer
Capability, or such other fraction of the HQ Phase II Transfer Capability as
the Participants Committee may establish.
1.43 HQ Use Agreement is the Agreement with Respect to Use of Quebec
Interconnection dated as of December 1, 1981 among certain of the
Participants, as amended and restated as of September 1, 1985 and as it may be
further amended from time to time.
1.44 Installed Capability of an electric generating unit or combination of
units during the Winter Period is the Winter Capability of such unit or units
and during the Summer Period is the Summer Capability of such unit or units.
1.45 Installed Capability Entitlement is (a) the right to all or a portion of
the Installed Capability of a generating unit or units to which an Entity is
entitled as an owner (either sole or in common) or as a purchaser pursuant to
a Unit Contract, (b) reduced by any portion thereof which such Entity is
selling pursuant to a Unit Contract, and (c) further reduced or increased, as
appropriate, to recognize rights to receive or obligations to supply Installed
Capability pursuant to Firm Contracts or System Contracts in accordance with
Section 14.7(a). An Installed Capability Entitlement relating to a unit or
units may, but need not, be combined with any other Entitlements relating to
such generating unit or units and may be transferred separately from the
related Energy Entitlement, Operating Reserve Entitlements, or AGC
Entitlement.
1.46 Installed Capability Responsibility * of a Participant for any month is
the number of Kilowatts determined in accordance with Section 12.2.
1.47 Installed System Capability of a Participant at a particular time is (1)
the sum of such Participant's Installed Capability Entitlements plus (2) its
HQ Net Interconnection Capability Credit at the time.
1.48 Interchange Transactions are transactions deemed to be effected under
Section 12 of the Prior NEPOOL Agreement prior to the Second Effective Date,
and transactions deemed to be effected under Section 14 of this Agreement on
and after the Second Effective Date.
1.49 Internal Point-to-Point Service is the transmission service by that name
provided pursuant to Section 19 of the Tariff.
1.50 Interruption is a reduction in non-firm transmission service due to
economic reasons pursuant to Section 28.7 of the Tariff, other than a
reduction which results from a failure to dispatch a generating resource,
including a contract, used in a transaction requiring In Service or Through or
Out Service which is out of merit order.
1.51 ISO is the Independent System Operator which is responsible for the
continued operation of the NEPOOL Control Area from the NEPOOL control center
and the administration of the Tariff, subject to regulation by the Commission.
1.52 Kilowatt is a kilowatthour per hour.
1.52A Liaison Committee is the committee whose responsibilities are
specified in Section 11C.
1.53 Load * (in Kilowatts) of a Participant during any particular hour is the
total during such hour (eliminating any distortion arising out of (i)
Interchange Transactions, or (ii) transactions across the system of such
Participant, or (iii) deliveries between Entities constituting a single
Participant, or (iv) other electrical losses, if and as appropriate) of
(a) kilowatthours provided by such Participant to its retail customers for
consumption (excluding any kilowatthours which may be classified as
interruptible under market operation rules approved by the Markets Committee),
plus
(b) kilowatthours delivered by such Participant pursuant to Firm Contracts to
its wholesale customers for resale, plus
(c) kilowatthours of use by such Participant, exclusive of use by such
Participant for the operation and maintenance of its generating unit or units,
plus
(d) kilowatthours of electrical losses and unaccounted for use by the
Participant on its system. The Load of a Participant may be calculated in any
reasonable manner which substantially complies with this definition.
For the purposes of calculating a Participant's Annual Peak, Adjusted Monthly
Peak, Adjusted Annual Peak and Monthly Peak, the Load of a Participant shall
be adjusted to eliminate any distortions resulting from voltage reductions.
In addition, upon the request of any Participant, the Markets Committee shall
make, or supervise the making of, appropriate adjustments in the computation
of Load for the purposes of calculating any Participant's Annual Peak,
Adjusted Monthly Peak, Adjusted Annual Peak and Monthly Peak to eliminate any
distortions resulting from emergency load curtailments which would
significantly affect the Load of any Participant.
1.54 Local Network is the transmission facilities constituting a local network
identified on Attachment E to the Tariff, and any other local network or
change in the designation of a Local Network as a Local Network which the
Participants Committee may designate or approve from time to time. The
Participants Committee may not unreasonably withhold approval of a request by
a Participant that it effect such a change or designation.
1.55 Local Network Service is the service provided, under a separate tariff or
contract, by a Participant that is a Transmission Provider to another
Participant, or other entity connected to the Transmission Provider's Local
Network to permit the other Participant or entity to efficiently and
economically utilize its resources to serve its load.
1.56 Lower Voltage PTF are all PTF facilities other than EHV PTF.
1.57 Market Products are Installed Capability, Operable Capability, Energy,
each category of Operating Reserve and AGC.
1.57A Market Rules are the system rules and operating procedures adopted
pursuant to the System Operator Agreement in connection with the
administration of the NEPOOL Market.
1.58 [Deleted.]
1.58A Markets Committee is the committee whose responsibilities are
specified in Section 10 and which may have additional responsibilities under a
proper delegation of authority by the Participants Committee. To the extent
practicable, references in the Agreement to the Markets Committee shall
include the prior Regional Market Operations Committee as the predecessor of
the Markets Committee.
1.59 Monthly Peak of a Participant for a month is the maximum Adjusted Load of
the Participant during any hour in the month.
1.60 NEPOOL is the New England Power Pool, the power pool created under and
governed by this Agreement, and the Entities collectively participating in the
New England Power Pool as Participants.
1.61 NEPOOL Control Area is the integrated electric power system to which a
common Automatic Generation Control scheme and various operating procedures
are applied by or under the supervision of the System Operator in order to:
(i) match, at all times, the power output of the generators within the
electric power system and capacity and Energy purchased from entities outside
the electric power system, with the load within the electric power system;
(ii) maintain scheduled interchange with other interconnected systems, within
the limits of Good Utility Practice;
(iii) maintain the frequency of the electric power system within
reasonable limits in accordance with Good Utility Practice and the criteria of
the NPCC and NERC; and
(iv) provide sufficient generating capacity to maintain operating reserves in
accordance with Good Utility Practice.
1.62 NEPOOL Installed Capability at any particular time is the sum of the
Installed System Capabilities of all Participants at such time.
1.63 NEPOOL Installed Capability Responsibility for any month is the sum of
the Installed Capability Responsibilities of all Participants during that
month.
1.64 NEPOOL Objective Capability for any year or period during a year is the
minimum NEPOOL Installed Capability, treating the reliability benefits of the
HQ Interconnection as Installed Capability, as established by the Participants
Committee, required to be provided by the Participants in aggregate for the
period to meet the reliability standards established by the Participants
Committee pursuant to Section 7.5(e).
1.64A NEPOOL Market is the market for electric energy, capacity and
certain ancillary services within the NEPOOL Control Area.
1.64B NEPOOL System Rules are the Market Rules, the NEPOOL Information
Policy and any other system rules for the operation of the System and
administration of the NEPOOL Market, the NEPOOL Agreement and the NEPOOL
Tariff.
1.64C NERC is the North American Electric Reliability Council.
1.65 New Unit is an electric generating unit (including a unit or units owned
by a Non-Participant in which a Participant has an Entitlement under a Unit
Contract) first placed into commercial operation after May 1, 1987 (or, in the
case of a unit or units owned by a Non-Participant, in which a Participant's
Unit Contract Entitlement became effective after May 1, 1987) and not listed
on Exhibit B to the Prior NEPOOL Agreement.
1.66 Non-Participant is any entity which is not a Participant.
1.66A NPCC is the Northeast Power Coordinating Council.
1.66B OASIS is the Open Access Same-Time Information System of the System
Operator.
1.67 Operable Capability of an electric generating unit or units in any hour
is the portion of the Installed Capability of the unit or units which is
operating or available to respond within an appropriate period (as identified
in market operation rules approved by the Markets Committee) to the System
Operator's call to meet the Energy and/or Operating Reserve and/or AGC
requirements of the NEPOOL Control Area during a Scheduled Dispatch Period or
is available to respond within an appropriate period to a schedule submitted
by a Participant for the hour in accordance with market operation rules
approved by the Markets Committee.
1.68 [Deleted].
1.69 [Deleted].
1.70 [Deleted].
1.71 Operating Reserve is any or a combination of 10-Minute Spinning Reserve,
10-Minute Non-Spinning Reserve, and 30-Minute Operating Reserve, as the
context requires.
1.72 Operating Reserve Entitlement is (a) the right to all or a portion of the
Operating Reserve of any category which can be provided by a generating unit
or units to which an Entity is entitled as an owner (either sole or in common)
or as a purchaser pursuant to a Unit Contract, (b) reduced by any portion
thereof which such Entity is selling pursuant to a Unit Contract, and (c)
further reduced or increased, as appropriate, to recognize rights to receive
or obligations to supply Operating Reserve of that category pursuant to Firm
Contracts or System Contracts in accordance with Section 14.7(a). An
Operating Reserve Entitlement in any category relating to a generating unit or
units may, but need not, be combined with any other Entitlements relating to
such generating unit or units and may be transferred separately from the other
categories of Operating Reserve Entitlements related to such unit or units and
from the related Installed Capability Entitlement, Energy Entitlement, or AGC
Entitlement.
1.73 Other HQ Energy is Energy purchased under the HQ Phase I Energy Contract
which is classified as "Other Energy" under that contract.
1.74 Participant is an eligible Entity (or group of Entities which has elected
to be treated as a single Participant pursuant to Section 4.1) which is a
signatory to this Agreement and has become a Participant in accordance with
Section 3.1 until such time as such Entity's status as a Participant
terminates pursuant to Section 21.2.
1.74A Participants Committee is the committee whose responsibilities are
specified in Section 7. To the extent applicable, references in the Agreement
to the Participants Committee shall include the prior Management Committee or
Executive Committee as the predecessor of the Participants Committee.
1.75 Pool-Planned Facility is a generation or transmission facility designated
as "pool-planned" pursuant to Section 18.1.
1.76 Pool-Planned Unit is one of the following units: New Haven Harbor Unit 1
(Coke Works), Mystic ▇▇▇▇ ▇, ▇▇▇▇▇ ▇▇▇▇ ▇, ▇▇▇▇▇▇ ▇▇▇▇ ▇, ▇▇▇▇▇ ▇▇▇▇ ▇, ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇ ▇, 1A, 1B, 1C, 2A and 2B, Millstone ▇▇▇▇ ▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇ and
Waters River Unit 2 (to the extent of 7 megawatts of its Summer Capability and
12 megawatts of its Winter Capability).
1.77 Power Year is (i) the period of twelve (12) months commencing on November
1, in each year to and including 1997; (ii) the period of seven (7) months
commencing on November 1, 1998; and (iii) the period of twelve (12) months
commencing on June 1, 1999 and each June 1 thereafter.
1.78 Prior NEPOOL Agreement is the NEPOOL Agreement as in effect on December
1, 1996.
1.79 Proxy Unit is a hypothetical electric generating unit which possesses a
Winter Capability, equivalent forced outage rate, annual maintenance outage
requirement, and seasonal derating determined in accordance with Section
12.2(a)(2).
1.80 PTF are the pool transmission facilities defined in Section 15.1, and any
other new transmission facilities which the Reliability Committee determines,
in accordance with criteria approved by the Participants Committee and subject
to review by the System Operator, should be included in PTF.
1.80A Publicly Owned Entity is an Entity which is either a municipality or
an agency thereof, or a body politic and public corporation created under the
authority of one of the New England states, authorized to own, lease and
operate electric generation, transmission or distribution facilities, or an
electric cooperative, or an organization of any such entities.
1.81 [Deleted.]
1.82 Regional Network Service is the transmission service by that name
provided pursuant to Section 14 of the Tariff.
1.83 [Deleted.]
1.84 [Deleted.]
1.85 Related Person of a Participant is either (i) a corporation, partnership,
business trust or other business organization 10% or more of the stock or
equity interest in which is owned directly or indirectly by, or is under
common control with, the Participant, or (ii) a corporation, partnership,
business trust or other business organization which owns directly or
indirectly 10% or more of the stock or other equity interest in the
Participant, or (iii) a corporation, partnership, business trust or other
business organization 10% or more of the stock or other equity interest in
which is owned directly or indirectly by a corporation, partnership, business
trust or other business organization which also owns 10% or more of the stock
or other equity interest in the Participant.
1.85A Reliability Committee is the committee whose responsibilities are
specified in Section 8 and which may have additional responsibilities under a
proper delegation of authority by the Participants Committee. To the extent
practicable, references in the Agreement to the Reliability Committee shall
include the prior Market Reliability Planning Committee or the prior Regional
Transmission Planning Committee as the predecessor of the Reliability
Committee.
1.85B Reliability Standards are those rules, standards, procedures and
protocols approved by the Participants Committee pursuant to Section 7.3, or
its predecessors, that set forth specifics concerning how the System Operator
shall exercise its authority over matters pertaining to the reliability of the
bulk power system.
1.85C Review Board is the board whose responsibilities are specified in
Section 11A.
1.86 Scheduled Dispatch Period is the shortest period for which the System
Operator performs and publishes a projected dispatch schedule based on
projected Electrical Loads and actual Bid Prices and Participant- directed
schedules for resources submitted in accordance with Section 14.2(d).
1.87 Second Effective Date is May 1, 1999.
1.87A Sector has the meaning specified in Section 6.2.
1.88 Service Agreement is the initial agreement and any amendments or
supplements thereto entered into by the Transmission Customer and the System
Operator for service under the Tariff.
1.89 Summer Capability of an electric generating unit or combination of units
is the maximum dependable load carrying ability in Kilowatts of such unit or
units (exclusive of capacity required for station use) during the Summer
Period, as determined by the Markets Committee in accordance with Section
10.4(d).
1.90 Summer Period in each Power Year is the four-month period from June
through September.
1.91 System Contract is any contract for the purchase of Installed Capability,
Energy, Operating Reserves and/or AGC, other than a Unit Contract or Firm
Contract, pursuant to which the purchaser is entitled to a specifically
determined or determinable amount of such Installed Capability, Energy,
Operating Reserves and/or AGC.
1.92 System Impact Study is an assessment pursuant to Part V, VI or VII of the
Tariff of (i) the adequacy of the NEPOOL Transmission System to accommodate a
request for the interconnection of a new or materially changed generating unit
or a new or materially changed interconnection to another Control Area or new
Regional Network Service, Internal Point- to-Point Service or Through or Out
Service, and (ii) whether any additional costs may be required to be incurred
in order to provide the interconnection or transmission service.
1.93 System Operator is the central dispatching agency provided for in this
Agreement which has responsibility for the operation of the NEPOOL Control
Area from the NEPOOL control center and the administration of the Tariff. The
System Operator is ISO New England Inc., unless replaced by a substitute
independent system operator, a regional transmission organization or an entity
that forms a part of a regional transmission organization that has, in each
case, been approved by the Commission.
1.94 Target Availability Rate is the assumed availability of a type of
generating unit utilized by the Participants Committee in its determination
pursuant to Section 7.5(e) of NEPOOL Objective Capability.
1.95 Tariff is the NEPOOL Open Access Transmission Tariff set out in
Attachment B to the Agreement, as modified and amended from time to time.
1.95A Tariff Committee is the committee whose responsibilities are
specified in Section 9 and which may have additional responsibilities under a
proper delegation of authority by the Participants Committee. To the extent
practicable, references in the Agreement to the Tariff Committee shall include
the prior Regional Transmission Operations Committee as the predecessor of the
Tariff Committee.
1.95B Technical Committees are the Reliability Committee, the Tariff
Committee and the Markets Committee.
1.96 Third Effective Date is the date on which all Interchange Transactions
shall begin to be effected on the basis of separate Bid Prices for each type
of Entitlement. The Third Effective Date shall be fixed at the discretion of
the Participants Committee to occur within six months to one year after the
Second Effective Date, or at such later date as the Commission may fix on its
own or pursuant to a request by the Participants Committee.
1.97 Through or Out Service is the transmission service by that name provided
pursuant to Section 18 of the Tariff.
1.98 Transition Period is the six-year period commencing on March 1, 1997.
1.99 Transmission Customer is any Eligible Customer that (i) is a Participant
which is not required to sign a Service Agreement with respect to a service to
be furnished to it in accordance with Section 48 of the Tariff or (ii)
executes, on its own behalf or through its Designated Agent, a Service
Agreement, or (iii) requests in writing, on its own behalf or through its
Designated Agent, that NEPOOL file with the Commission a proposed unexecuted
Service Agreement in order that the Eligible Customer may receive transmission
service under the Tariff.
1.99A Transmission Owner is a Transmission Provider which makes its PTF
available under the Tariff and owns a Local Network listed in Attachment E to
the Tariff which is not a Publicly Owned Entity, including any affiliate of a
Transmission Provider that owns transmission facilities that are made
available as part of the Transmission Provider's Local Network; provided that
if a Transmission Provider is not listed in Attachment E to the Tariff on May
10, 1999, the Transmission Provider must also (1) own, or lease with rights
equivalent to ownership, PTF with an original capital investment in its PTF as
of the end of the most recent year for which figures are available from annual
reports submitted to the Commission in Form 1 or any similar form containing
comparable annualized data of at least $30,000,000, and (2) provide
transmission service to non-affiliated customers pursuant to an open access
transmission tariff on file with the Commission.
1.99B Transmission Owners Committee is the committee whose
responsibilities are specified in Section 11B.
1.100 Transmission Provider is the Participants, collectively, which own
PTF and are in the business of providing transmission service or provide
service under a local open access transmission tariff, or in the case of a
state or municipal or cooperatively-owned Participant, would be required to do
so if requested pursuant to the reciprocity requirements specified in the
Tariff, or an individual such Participant, whichever is appropriate.
1.101 Unit Contract is a purchase contract pursuant to which the purchaser
is in effect currently entitled either (i) to a specifically determined or
determinable portion of the Installed Capability of a specific electric
generating unit or units, or (ii) to a specifically determined or determinable
amount of Energy, Operating Reserves and/or AGC if, or to the extent that, a
specific electric generating unit or units is or can be operated.
1.102 [Deleted.]
1.103 Winter Capability of an electric generating unit or combination of
units is the maximum dependable load carrying ability in Kilowatts of such
unit or units (exclusive of capacity required for station use) during the
Winter Period, as determined by the Markets Committee in accordance with
Section 10.4(d).
1.104 Winter Period in each Power Year is (i) the seven-month period from
November through May and the month of October for the Power Year commencing on
November 1 in 1997 or a prior Power Year; (ii) the seven- month period from
November through May for the Power Year commencing on November 1, 1998; and
(iii) the eight-month period from October through May for the Power Year
commencing on June 1, 1999 and each June 1 thereafter.
1.105 10-Minute Spinning Reserve in an hour are the following resources
that are designated by the System Operator in accordance with market operation
rules, as approved by the Markets Committee, to be available to provide
contingency protection for the system: (1) the Kilowatts of Operable
Capability of an electric generating unit or units that are synchronized to
the system, unloaded during all or part of the hour, and capable of providing
contingency protection by loading to supply Energy immediately on demand,
increasing the Energy output over no more than ten minutes to the full amount
of generating capacity so designated, and sustaining such Energy output for so
long as the System Operator determines in accordance with market operation
rules approved by the Markets Committee is necessary; and (2) any portion of
the Electrical Load of a Participant that the System Operator is able to
verify as capable of providing contingency protection by immediately on demand
reducing Energy requirements within ten minutes and maintaining such reduced
Energy requirements for so long as the System Operator determines in
accordance with market operation rules approved by the Markets Committee is
necessary.
1.106 10-Minute Non-Spinning Reserve in an hour are the following
resources that are designated by the System Operator in accordance with market
operation rules, as approved by the Markets Committee, to be available to
provide contingency protection for the system: (1) the Kilowatts of Operable
Capability of an electric generating unit or units that are not synchronized
to the system, during all or part of the hour, and any portion of a
Participant's Electrical Load that the System Operator is able to verify as
capable of providing contingency protection by loading to supply Energy within
ten minutes to the full amount of generating capacity so designated, and
sustaining such Energy output reducing Energy requirements within ten minutes
and maintaining such reduced Energy requirements for so long as the System
Operator determines in accordance with market operation rules approved by the
Markets Committee is necessary; (2) any portion of a Participant's Electrical
Load that the System Operator is able to verify as capable of providing
contingency protection by reducing Energy requirements within ten minutes and
maintaining such reduced Energy requirements for so long as the System
Operator determines in accordance with market operations rules approved by the
Markets Committee is necessary; and (3) any other resources and requirements
that were able to be designated for the hour as 10-Minute Spinning Reserve but
were not designated by the System Operator for such purpose in the hour.
1.107 30-Minute Operating Reserve in an hour are the following resources
that are designated by the System Operator in accordance with market operation
rules, as approved by the Markets Committee, to be available to provide
contingency protection for the system: (1) the Kilowatts of Operable
Capability of an electric generating unit or units that are any portion of the
Electrical Load of a Participant that the System Operator is able to verify as
capable of providing contingency protection by reducing Energy requirements
within thirty minutes and maintaining such reduced Energy requirements for so
long as the System Operator determines in accordance with market operation
rules approved by the Markets Committee is necessary; (2) any portion of the
Electrical Load of a Participant that the System Operator is able to verify as
capable of providing contingency protection by reducing Energy requirements
within thirty minutes and maintaining such reduced Energy requirements for so
long as the System Operator determines in accordance with market operation
rules approved by the Markets Committee is necessary; and (3) any other
resources and requirements that were able to be designated for the hour as
10-Minute Spinning Reserve or 10-Minute Non-Spinning Reserve but were not
designated by the System Operator for such purposes in the hour.
1.108 [Deleted.]
1.109 Modification of Certain Definitions When a Participant Purchases a
Portion of Its Requirements from Another Participant Pursuant to Firm Contract
Definitions marked by an asterisk (*) are modified as follows when a
Participant purchases a portion of its requirements of electricity from
another Participant pursuant to a Firm Contract:
(a) If the Firm Contract limits deliveries to a specifically stated number of
Kilowatts and requires payment of a demand charge thereon (thus placing the
responsibility for meeting additional demands on the purchasing Participant):
(1) in computing the Adjusted Load of the purchasing Participant, the
Kilowatts received pursuant to such Firm Contract shall be deemed to be the
number of Kilowatts specified in the Firm Contract; and
(2) in computing the Load of the supplying Participant, the Kilowatts
delivered pursuant to such Firm Contract shall be deemed to be the number of
Kilowatts specified in the Firm Contract.
(b) If the Firm Contract does not limit deliveries to a specifically stated
number of Kilowatts, but entitles the Participant to receive such amounts of
electricity as it may require to supply its electric needs (thus placing the
responsibility for meeting additional demands on the supplying Participant):
(1) the Installed Capability Responsibility of the purchasing Participant
shall be equal to the amount of its Installed Capability Entitlements;
(2) in computing the Adjusted Load of the purchasing Participant, the
Kilowatts received pursuant to such Firm Contract shall be deemed to be a
quantity Rl; and
(3) in computing the Load of the supplying Participant, the Kilowatts
delivered pursuant to such Firm Contract shall be deemed to be a quantity Rl.
The quantity Rl equals (i) the Load of the purchasing Participant less (ii)
the amount of the purchasing Participant's Installed Capability
Entitlements multiplied by a fraction wherein:
X is the maximum Load of the purchasing Participant in the month, and
Y is the NEPOOL Installed Capability Responsibility multiplied by the
purchasing Participant's fraction P determined pursuant to Section 12.2(a)(1),
computed as if the Firm Contract did not exist.
Terms used in this Agreement that are not defined above, or in the sections in
which such terms are used, shall have the meanings customarily attributed to
such terms in the electric power industry in New England.
SECT65535ON 2
PURPOSE; EFFECTIVE DATES
2.1 Purpose. This Restated NEPOOL Agreement is intended to provide for a
restructuring of the New England Power Pool by modifying the pool's governance
and market provisions to take account of a changed competitive environment, by
modifying the transmission responsibilities of the Participants so that the
pool will perform the functions of a regional transmission group and provide
service to Participants and Non- Participants under a regional open access
transmission tariff, and by providing for the activation of the ISO and the
execution of a contract between the ISO and NEPOOL to define the ISO's
responsibilities.
2.2 Effective Dates; Transitional Provisions. The provisions of Parts One,
Two, Four and Five of this Agreement and the Tariff became effective on the
First Effective Date and replaced on the First Effective Date the provisions
of Sections 1-8, inclusive, 10, 11, 13, 14.2, 14.3, 14.4 and 16 of the Prior
NEPOOL Agreement. The provisions of Sections 12.1(a), 12.2, 12.4 (as to
Installed Capability only), 12.5 and 12.7(a) of this Agreement became
effective on April 1, 1998 and replaced on such date the provisions of Section
9 of the Prior NEPOOL Agreement.
The effectiveness of the remaining Sections of this Restated NEPOOL Agreement
shall be delayed pending the preparation of implementing criteria, rules and
standards and computer programs. These Sections became effective on the
Second Effective Date and replaced on the Second Effective Date the remaining
provisions of the Prior NEPOOL Agreement, which continued in effect until the
Second Effective Date.
As provided in Section 14, certain portions of Section 14 which became
effective on the Second Effective Date will be superseded on the Third
Effective Date by other portions of Section 14.
SECT65535ON 3 MEMBERSHIP
3.1 Membership. Those Entities which are Participants in NEPOOL on the First
Effective Date shall continue to be Participants.
Any other Entity may, upon compliance with such reasonable conditions as the
Participants Committee may prescribe, become a Participant by depositing a
counterpart of this Agreement as theretofore amended, duly executed by it,
with the Secretary of the Participants Committee, accompanied by a certified
copy of a vote of its board of directors, or such other body or bodies as may
be appropriate, duly authorizing its execution and performance of this
Agreement, and a check in payment of the application fee described below.
Any such Entity which satisfies the requirements of this Section 3.1 shall
become a Participant, and this Agreement shall become fully binding and
effective in accordance with its terms as to such Entity, as of the first day
of the second calendar month following its satisfaction of such requirements;
provided that an earlier or later effective time may be fixed by the
Participants Committee with the concurrence of such Entity or by the
Commission.
The application fee to be paid by each Entity seeking to become a Participant
shall be in addition to the annual fee provided by Section 19.1 and shall be
$500 for an applicant which qualifies for membership only as an End User
Participant, and $5,000 for all other applicants, or such other amount as may
be fixed by the Participants Committee.
3.2 Operations Outside the Control Area. Subject to the reciprocity
requirements of the Tariff, if a Participant serves a Load, or has rights in
supply or demand-side resources or owns transmission and/or distribution
facilities, located outside of the NEPOOL Control Area, such Load and
resources shall not be included for purposes of determining the Participant's
rights, responsibilities and obligations under this Agreement, except that the
Participant's Entitlements in facilities or its rights in demand
side-resources outside the NEPOOL Control Area shall be included in such
determinations if, to the extent, and while such Entitlements are used for
retail or wholesale sales within the NEPOOL Control Area or such Entitlements
or rights are designated by a Participant for purposes of meeting its
obligations under Section 12 of this Agreement.
3.3 Lack of Place of Business in New England. If and for so long as a
Participant does not have a place of business located in one of the New
England states, the Participant shall be deemed to irrevocably (1) submit to
the jurisdiction of any Connecticut state court or United States Federal court
sitting in Connecticut (the state whose laws govern this Agreement) over any
action or proceeding arising out of or relating to this Agreement that is not
subject to the exclusive jurisdiction of the Commission, (2) agree that all
claims with respect to such action or proceeding may be heard and determined
in such Connecticut state court or Federal court, (3) waive any objection to
venue or any action or proceeding in Connecticut on the basis of forum non
conveniens, and (4) agree that service of process may be made on the
Participant outside Connecticut by certified mail, postage prepaid, mailed to
the Participant at the address of its member on the Participants Committee as
set out in the NEPOOL roster or at the address of its principal place of
business.
3.4 Obligation for Deferred Expenses. NEPOOL may provide for the deferral on
the books of the Participants from time to time of capital or other
expenditures, and the recovery of the deferred expenses in subsequent periods.
Any Entity which becomes a Participant during the recovery period for any such
deferred expenses shall be obligated, together with the continuing
Participants, for its share of the current and deferred expenses pursuant to
Section 19.2. 3.5 Financial Security. For an Entity applying to become a
Participant or any continuing Participant that the Participants Committee
reasonably determines may fail to meet its financial obligations under the
Agreement, the Participants Committee may require reasonable credit review
procedures which shall be made in accordance with standard commercial
practices. In addition, the Participants Committee may prescribe for such
Entity or Participant a requirement that the Entity or Participant provide and
maintain in effect an irrevocable letter of credit as security to meet its
responsibilities and obligations under the Agreement, or an alternative form
of security proposed by the Entity or Participant and acceptable to the
Participants Committee and consistent with commercial practices established by
the Uniform Commercial Code that protects the Participants against the risk of
non- payment.
SECT65535ON 4
STATUS OF PARTICIPANTS
4.1 Treatment of Certain Entities as Single Participant. All Entities which
are controlled by a single person (such as a corporation or a business trust)
which owns at least seventy-five percent of the voting shares of, or equity
interest in, each of them shall be collectively treated as a single
Participant for purposes of this Agreement, if they each elect such treatment.
They are encouraged to do so. Such an election shall be made in writing and
shall continue in effect until revoked in writing.
In view of the long-standing arrangements in Vermont, Vermont Electric Power
Company, Inc. and any other Vermont electric utilities which elect in writing
to be grouped with it shall be collectively treated as a single Participant
for purposes of this Agreement; provided, however, that any Vermont electric
utility which is a Publicly Owned Entity may elect to join the Publicly Owned
Entity Sector and be treated as a member of that Sector for purposes of
governance, annual fees and NEPOOL expense allocation, without losing the
benefits of single Participant status for any other purpose under this
Agreement.
4.2 Participants to Retain Separate Identities. The signatories to this
Agreement shall not become partners by reason of this Agreement or their
activities hereunder, but as to each other and to third persons, they shall be
and remain independent contractors in all matters relating to this Agreement.
This Agreement shall not be construed to create any liability on the part of
any signatory to anyone not a party to this Agreement. Each signatory shall
retain its separate identity and, to the extent not limited hereby, its
individual freedom in rendering service to its customers.
SECT65535ON 5
NEPOOL OBJECTIVES AND COOPERATION BY PARTICIPANTS
5.1 NEPOOL Objectives. The objectives of NEPOOL are, through joint planning,
central dispatching, cooperation in environmental matters and coordinated
construction, central dispatch by the System Operator of the operation and
coordinated maintenance of electric supply and demand-side resources and
transmission facilities, the provision of an open access regional transmission
tariff and the provision of a means for effective coordination with other
power pools and utilities situated in the United States and Canada,
(a) to assure that the bulk power supply of the NEPOOL Control Area conforms
to proper standards of reliability;
(b) to create and maintain open, non-discriminatory, competitive, unbundled
markets for Energy, capacity, and ancillary services that function efficiently
in a changing electric power industry and have access to regional transmission
at rates that do not vary with distance;
(c) to attain maximum practicable economy, consistent with proper standards
of reliability and the maintenance of competitive markets, in such bulk power
supply; and
(d) to provide access to competitive markets within the NEPOOL Control Area
and to neighboring regions; and to provide for equitable sharing of the
resulting responsibilities, benefits and costs.
5.2 Cooperation by Participants. In order to attain the objectives of NEPOOL
set forth in Section 5.1, each Participant shall observe the provisions of
this Agreement in good faith, shall cooperate with all other Participants and
shall not either alone or in conjunction with one or more other Entities take
advantage of the provisions of this Agreement so as to harm another
Participant or to prejudice the position of any Participant in the electric
power business.
PART TWO
GOVERNANCE
SECT65535ON 6
COMMITTEE ORGANIZATION AND VOTING
6.1 Principal Committees. There shall be four principal NEPOOL Committees
(the "Principal Committees"), as follows:
(a) the Participants Committee which shall have the responsibilities
specified in Section 7;
(b) the Reliability Committee which shall have the responsibilities specified
in Section 8;
(c) the Tariff Committee which shall have the responsibilities specified in
Section 9; and
(d) the Markets Committee which shall have the responsibilities specified in
Section 10.
In addition, there shall be a Transmission Owners Committee and a Liaison
Committee, which shall have the responsibilities specified in Sections 11B and
11C, respectively, and such other committees as may be established from time
to time by the Participants Committee.
6.2 Sector Representation. The members of each Principal Committee shall
each belong to a single sector for voting purposes ("Sector"). Each
Participant shall be obligated to designate in a notice to the Secretary of
the Participants Committee a Sector that it or its Related Persons is eligible
to join and that it elects to join for purposes of all of the Principal
Committees. A Participant and its Related Persons shall together be entitled
to join only one Sector and shall have no more than one vote on each Principal
Committee.
The Sectors for each Principal Committee, the criteria for eligibility for
membership in each Sector and the minimum requirement which a Participant must
meet as a member of a Sector in order to appoint a voting member of the Sector
and Committee are as follows:
(a) a Generation Sector, which a Participant shall be eligible to join if (i)
it (A) owns or leases with rights equivalent to ownership facilities for the
generation of electric energy that are located within the NEPOOL Control Area
which are currently in operation, or (B) has proposed generation for operation
within the NEPOOL Control Area either which has received approvals under
Sections 18.4 and/or 18.5 within the past two years or for which completed
environmental air or environmental siting applications have been filed or
permits exist, and (ii) it is not a Publicly Owned Entity. Purchasing all or
a portion of the output of a generation facility shall not be sufficient to
qualify a Participant to join the Generation Sector.
A Participant which joins the Generation Sector shall be entitled but not
required to designate an individual voting member of each Principal Committee,
and an alternate to the member, if its operating or proposed generation
facilities in the NEPOOL Control Area have or will have, when placed in
operation, an aggregate Winter Capability of at least 15 MW. A Participant
which joins the Generation Sector but elects not to or is not eligible to
designate an individual voting member, shall be represented by a group voting
member and an alternate to that member for each Principal Committee
(collectively, the "Generation Group Member"). The Generation Group Member
shall be appointed by a majority of the Participants in the Generation Sector
electing or required to be represented by that member. The Generation Group
Member shall have the same percentage of the Sector vote as the individual
voting members designated by other Participants in the Generation Sector which
meet the 15 MW threshold and designate an individual voting member. The
Generation Group Member shall be entitled to split his or her vote.
(b) a Transmission Sector, which a Participant shall be eligible to join if it
is a Transmission Provider and is not a Publicly Owned Entity. Taking
transmission service shall not be sufficient to qualify a Participant to join
the Transmission Sector.
A Participant which joins the Transmission Sector shall be entitled to
designate an individual voting member of each Principal Committee, and an
alternate to the member, if it owns or leases with rights equivalent to
ownership PTF with an original capital investment in its PTF as of the end of
the most recent year for which figures are available from annual reports
submitted to the Commission in Form 1 or any similar form containing
comparable annualized data of at least $30,000,000. A Transmission Provider
with facilities which were included as PTF prior to December 31, 1998 only
pursuant to clause (3) of the definition of PTF pursuant to Section 15.1 shall
be entitled to designate an individual voting member of each Principal
Committee, and an alternate to the member, whether or not PTF which it owns or
leases with rights equivalent to ownership which has an original capital
investment of at least $30,000,000, so long as such Transmission Provider
continues to own PTF.
A Participant which joins the Transmission Sector but which is not entitled to
designate an individual voting member of each Principal Committee because (i)
it, together with all of its Related Persons, does not meet the $30,000,000
threshold or (ii) it no longer owns PTF and it does not have a Related Person
that is entitled to designate an individual voting member for each Principal
Committee in another Sector, together with the other Participants in the
Transmission Sector which for the same reasons are unable to designate an
individual voting member, shall be represented by a group voting member of
each Principal Committee (the "Transmission Group Member"), and an alternate
to that member. The Transmission Group Member and alternate shall be
appointed by a majority vote of all Participants in the Transmission Sector
required to be represented by that Member. The Transmission Group Member
shall have the same percentage of the Sector vote as the individual voting
members designated by other Participants in the Transmission Sector which meet
the $30,000,000 threshold unless and until the original capital investment in
PTF of the Participants represented by the Transmission Group Member equals or
exceeds twice the $30,000,000 threshold amount. If the aggregate original
capital investment in PTF equals or exceeds twice the $30,000,000 threshold
amount, the percentage of the Sector votes assigned to the Transmission Group
Member shall equal the number of full multiples of the $30,000,000 threshold,
provided that the Transmission Group Member shall in no event be entitled to
more than twenty-five percent (25%) of the Sector vote. For example, if
Participants represented by the Transmission Group Member have an aggregate
original capital investment in PTF in the NEPOOL Control Area totaling
$70,000,000, the Transmission Group Member will have the same percentage of
such votes as two ($70,000,000/$30,000,000 Threshold = 2.33) individual
voting members designated by individual Participants, provided that there are
at least six other members in the Sector so the Transmission Group Member does
not have more than twenty-five percent (25%) of the Transmission Sector vote.
The Transmission Group Member shall be entitled to split his or her vote.
(c) a Supplier Sector, which a Participant shall be eligible to join if (i)
it engages in, or is licensed or otherwise authorized by a state or federal
agency with jurisdiction to engage in, power marketing, power brokering or
load aggregation within the NEPOOL Control Area or it had been engaged on and
before December 31, 1998 solely in the distribution of electricity in the
NEPOOL Control Area, and (ii) it is not a Publicly Owned Entity. A
Participant which joins the Supplier Sector shall be entitled to designate a
voting member of each Principal Committee, and an alternate to the member.
(d) a Publicly Owned Entity Sector, which all Participants which are Publicly
Owned Entities are eligible to join and shall join, and which End User
Participants are eligible to join if there is not an activated End User
Sector. A Participant which joins the Publicly Owned Entity Sector shall be
entitled to designate a voting member of each Principal Committee, and an
alternate to the member, except for End User Participants whose voting
interests while they are in the Publicly Owned Entity Sector are defined in
Section 6.2(e) below.
(e) an End User Sector, which an End User Participant is eligible to join.
Participants which join the End User Sector shall be entitled to designate a
voting member of each Principal Committee and an alternate to the member.
Until there are at least ten End User Participants, all End User Participants
shall be members of the Publicly Owned Entity Sector. So long as there are
less than three End User Participants, the End User Participants in the
Publicly Owned Entity Sector shall be represented on each Principal Committee
by a single voting member. At such time as there are at least three, but less
than ten, End User Participants, End User Participants shall become a
sub-sector of the Publicly Owned Entity Sector. Such sub-sector shall have
twenty percent (20%) of the Publicly Owned Entity Sector's vote, and each End
User Participant shall be entitled to designate a voting member of each
Principal Committee, and an alternate to that member, and each voting member
shall be allocated a per capita share of the sub-sector's vote. The End User
Sector shall become fully operational automatically as soon, and shall remain
operational so long as, there are at least ten End User Participants.
The System Operator shall have the right to designate, by written notice
delivered to the Secretary of the appropriate Principal Committee, a
non-voting member and an alternate to each Principal Committee. All
Participants have the right to join and be a member of a Sector. If a
Participant ceases to be eligible to be a member of the Sector which it
previously joined and is not eligible to join another existing Sector other
than the End User Sector, it shall have the right to remain and vote in the
Sector in which the Participant is currently a member for up to one year. By
the end of such year, the NEPOOL Participants Committee shall make a filing
with the Commission pursuant to which the Participant can join another Sector
that either exists or is created pursuant to the NEPOOL Participants Committee
filing. Separate Sectors may be created, and the membership of existing
Sectors may be modified, by amendment of the Agreement.
6.3 Appointment of Members and Alternates. A Participant or group of
Participants shall designate, by a written notice delivered to the Secretary
of the appropriate Committee, the voting member appointed by it for the
Committee and an alternate of the member. In the absence of the member, the
alternate shall have all the powers of the member, including the power to
vote. A Participant may change the Sector of which it is a member. Other
than for Sector changes required by Section 6.4(c), a change in the Sector in
which a Participant is a member shall become effective beginning on the first
annual meeting of the Participants Committee following notice of such change.
6.4 Term of Members. Each voting member of a Principal Committee shall hold
office until either (a) such member is replaced by the Participant or group of
Participants which appointed the member, or (b) the appointing Participant
ceases to be a Participant, or (c) the appointing Participant (or its Related
Person) is no longer eligible to be in the Sector to which it belongs, but is
eligible to join a different Sector. Replacement of a member shall be
effected by delivery by a Participant or group of Participants of written
notice of such replacement to the Secretary of the appropriate Committee.
6.5 Regular and Special Meetings. Each Principal Committee shall hold its
annual meeting in December or January at such time and place as the Chair
shall designate and shall hold other meetings in accordance with a schedule
adopted by the Committee or at the call of the Chair. Five or more voting
members of a Principal Committee may call subject to the notice provisions of
Section 6.6 a special meeting of the Committee in the event that the Chair
fails to schedule such a meeting within three business days following the
Chair's receipt from such members of a request specifying the subject matters
to be acted upon at the meeting.
6.6 Notice of Meetings. Written or electronic notice of each meeting of a
Principal Committee shall be given to each Participant, whether or not such
Participant is entitled to appoint an individual voting member of the
Committee, not less than three business days prior to the date of the meeting
in the case of the Technical Committees and five business days prior to the
date of the meeting for the Participants Committee.
A notice of meeting shall specify the principal subject matters expected to be
acted upon at the meeting. In addition, such notice shall include, or specify
internet location of, all draft resolutions to be voted at the meeting (which
draft resolutions may be subject to amendment of intent but not subject matter
during the meeting), and all background materials deemed by the Chair or
Secretary to be necessary to the Committee to have an informed opinion on such
matters. Motions raised for which no draft resolutions or background
materials have been provided may not be acted upon at a meeting and shall be
deferred to a subsequent meeting which is properly noticed.
6.7 Attendance. Regular and special meetings may be conducted in person, by
telephone, or other electronic means by means of which all persons
participating in the meeting can communicate in real time with each other. In
order to vote during the course of a meeting, attendance is required in person
or by telephone or other real time electronic means by a voting member or its
alternate or a duly designated agent who has been given, in writing, the
authority to vote for the member on all matters or on specific matters in
accordance with Section 6.12.
6.8 Quorum. All actions by a Principal Committee, other than a vote by the
Participants Committee by written ballot to amend the NEPOOL Agreement or
Tariff, shall be taken at a meeting at which the members in attendance
pursuant to Section 6.7 constitute a Quorum. A Quorum requires the attendance
by members which satisfy the Sector Quorum requirements (as defined in Section
6.9) for a majority of the activated Sectors. No action may be taken by a
Principal Committee unless a Quorum is present; provided, however, that if a
Quorum is not present, the voting members then present shall have the power to
adjourn the meeting from time to time until a quorum shall be present.
6.9 Voting Definitions. For purposes of this Section 6.9 and Sections 6.10,
6.11 and 6.13, the following terms shall have the following respective
meanings:
(a) Sector Voting Share: for each active Sector, is the quotient obtained by
dividing one hundred percent (100%) by the number of active Sectors. For
example, if there are five active Sectors, the Sector Voting Share of each of
the Sectors is twenty percent (20%). The aggregate Sector Voting Shares shall
equal one hundred percent 100%.
(b) Sector Quorum: for a Sector shall be the lesser of (i) fifty percent
(50%) or more (rounded to the next higher whole number) of the voting members
of the Sector, or (ii) five (5) or more voting members of the Sector for the
Participants Committee or three (3) or more voting members of the Sector for
the Technical Committees.
(c) Member Fixed Voting Share: for a Committee voting member, whether or not
the member is in attendance, is the quotient obtained by dividing (i) the
Sector Voting Share of the Sector to which the Participant or group of
Participants which appointed the Committee voting member belongs by (ii) the
total number of Committee voting members appointed by members of that Sector,
adjusted, if necessary, to take into account (A) the manner in which the
voting shares of End User Participants are to be determined while they are
members of the Publicly Owned Entity Sector, and (B) any required change in
the voting share of a Group Member, in each case as determined in accordance
with Section 6.2.
(d) Member Adjusted Voting Share: for a Committee voting member which casts
an affirmative or negative vote on a proposed action or amendment and which
has been appointed by a Participant or group of Participants which are members
of a Sector satisfying its Sector Quorum requirement for the proposed action
or amendment, is the quotient obtained by dividing (i) the Sector Voting Share
of that Sector by (ii) the number of voting members appointed by members of
that Sector which cast affirmative or negative votes on the matter, adjusted,
if necessary, for End User Participants and group voting members as provided
in the definition of "Member Fixed Voting Share".
(e) NEPOOL Vote: with respect to a proposed action or amendment is the sum of
(i) the Member Adjusted Voting Shares of the voting members of the Committee
which cast an affirmative vote on the proposed action or amendment and which
have been appointed by a Participant or group of Participants which are
members of a Sector satisfying its Sector Quorum requirements and (ii) the
Member Fixed Voting Shares of the voting members of the Committee which cast
an affirmative vote on the proposed action or amendment and which have been
appointed by a Participant or group of Participants which are members of a
Sector which fails to satisfy its Sector Quorum requirements.
(f) Minimum Response Requirement: with respect to a proposed amendment to
this Agreement or Tariff means that the ballots received by the Balloting
Agent from Participants relating to the proposed amendment before the end of
the appropriate time specified in Section 6.11(c) must satisfy the following
thresholds:
(i) the sum of the Member Fixed Voting Shares of the Participant voting
members whose ballots are received must equal at least fifty percent (50%);
and
(ii) the Participants whose voting members timely return ballots for or
against the amendment must include Participants that are represented by voting
members having at least fifty percent (50%) of the Member Fixed Voting Shares
in each of a majority of the activated Sectors.
6.10 Voting On Proposed Actions. All matters to be acted upon by a Principal
Committee shall be stated in the form of a motion by a voting member, which
must be seconded. Only one motion and any one amendment to that motion may be
pending at one time. Passage of a motion requires a NEPOOL Vote as determined
pursuant to Section 6.9 equal to or greater than two thirds of the aggregate
Sector Voting Shares. Voting members not in attendance or represented at a
meeting as specified in Section 6.7 or abstaining shall not be counted as
affirmative or negative votes.
6.11 Voting On Amendments. Subject to Section 21.11 and Section 17A,
amendments to the NEPOOL Agreement or Tariff shall be accomplished as follows:
(a) Amendments shall be drafted by a standing or ad hoc NEPOOL committee or a
Participant and sent to the Participants Committee for its consideration.
(b) The Participants Committee shall take action pursuant to Section 6.10 to
direct the Balloting Agent to circulate ballots for approval of the draft
Amendment to each Participant for execution by its voting member or alternate
on the Participants Committee or such Participant's duly authorized officer.
(c) In order to be counted, ballots must be executed and returned to the
Balloting Agent for NEPOOL in accordance with the following schedule:
(i) If the ballots are delivered to each Participant by regular mail,
properly executed ballots must be returned to and received by the Balloting
Agent within ten (10) business days after deposit of such ballots in the mail
by the Balloting Agent, and
(ii) If the ballots are delivered to each Participant by overnight delivery,
facsimile, electronic mail or hand delivery, then properly executed ballots
must be returned to and received by the Balloting Agent within five (5)
business days after (A) deposit of such ballots with an overnight delivery
courier if delivered by overnight delivery, or (B) transmission of such
ballots by the Balloting Agent if delivered by facsimile or electronic mail,
or (C) receipt by the Participant if delivered by hand delivery.
(iii) If the Minimum Response Requirement for an amendment has not been
received by the Balloting Agent within the schedule identified in subsection
(i) or (ii) above, the Balloting Agent shall send notice by overnight
delivery, facsimile, electronic mail or hand delivery to all non-responding
Participants and shall count any additional properly executed ballots which it
receives within five (5) business days after such notice. The date by which
properly executed ballots must be returned and received by the Balloting Agent
shall be specified by the Balloting Agent in the notice accompanying such
ballots.
(d) A Participant may appeal to the Review Board or submit for resolution
pursuant to the alternative dispute resolution provisions of Section 21.1 a
proposed amendment for which ballots have been circulated, provided that such
appeal is taken or submission is presented before the end of the tenth (10th)
business day after the Participants Committee has taken action to direct the
Balloting Agent to circulate ballots for approval of the draft amendment, by
giving to the Secretary of the Participants Committee a signed and written
notice of appeal or submission. The appeal shall be moot, or submission shall
be deemed withdrawn, if the amendment is not approved in balloting by the
Participants Committee. If the amendment is approved, a valid appeal or
submission shall stay the filing with the Commission of any amendment to the
NEPOOL Agreement or Tariff until either (i) a decision on the appeal by the
Review Board, or (ii) the earlier of resolution pursuant to Section 21.1 or
termination pursuant to Section 21.1.B(2) of the suspension effects of the
submission.
(e) In order for a proposed amendment to the NEPOOL Agreement or Tariff to be
approved by the Participants Committee, the following criteria must be
satisfied:
(i) The Minimum Response Requirement must be satisfied with respect to the
proposed amendment.
(ii) The affirmative ballot votes with respect to the proposed amendment must
equal or exceed two thirds of the aggregate Sector Voting Shares.
6.12 Designated Representatives and Proxies. The vote of any member of a
Principal Committee or the member's alternate, other than a ballot on an
amendment, may be cast by another person pursuant to a written, standing
designation or proxy. A designation or proxy shall be dated not more than one
year previous to the meeting and shall be delivered by the member or alternate
to the Secretary of the Committee at or prior to any votes being taken at the
meeting at which the vote is cast pursuant to such designation or proxy. A
single individual may be the designated representative of or be given the
proxy of the voting members representing any number of Participants of any one
Sector or Participants from multiple Sectors.
6.13 Limits on Representatives. In the Generation Sector, no one person may
exercise more than twenty-five percent (25%) of that Sector's total Member
Fixed Voting Shares without the unanimous written agreement of all members of
the Generation Sector. Other Sectors may by unanimous written agreement elect
to impose limits on the voting power any one individual may have in that
Sector through being the designated representative of multiple voting members
or carrying multiple proxies from voting members of that Sector. Notice of
any such limits on voting power must be posted on the System Operator home
page and be capable of being accessed by all Participants.
6.14 Adoption of Bylaws. The Participants Committee shall adopt bylaws,
consistent with this Agreement, governing procedural matters including the
conduct of its meetings and those of the other Principal Committees. If there
is any conflict between such bylaws and the Agreement, the Agreement shall
control. A Principal Committee may vote to waive its bylaws for a particular
meeting, provided the motion to effect the waiver is approved in accordance
with Section 6.10.
6.15 Joint Meetings of Technical Committees. It is recognized that
responsibilities of the Technical Committees may overlap in certain areas. In
areas of overlap, the Reliability Committee is responsible for addressing
reliability matters, the Markets Committee is responsible for addressing
market implications of actions or recommendations, and the Tariff Committee is
responsible for addressing issues relating to transmission and ancillary
services. The Chairs of the Technical Committees, with input from the Liaison
Committee Co-Chairs or entire Liaison Committee, as appropriate, shall
prioritize and sequence Technical Committee activities to ensure full and
proper input by Participants while maximizing the efficiency of the decision
making process. To the extent appropriate and desirable, the Technical
Committees are authorized and encouraged to hold meetings, and to conduct
studies and exercise responsibilities, jointly with other Technical
Committees.
SECT65535ON 7
PARTICIPANTS COMMITTEE
7.1 Officers. At its annual meeting, the Participants Committee shall elect
from among its members a Chair and Vice-Chair; it shall also elect a Secretary
who shall not be a member. These officers shall have the powers and duties
usually incident to such offices and as set forth in the Committee bylaws.
7.2 Adoption of Budgets. At each annual meeting, the Participants Committee
shall adopt a NEPOOL budget for the ensuing calendar year. In adopting
budgets the Participants Committee shall give due consideration to the
budgetary requests of each committee. The Participants Committee may modify
any NEPOOL budget from time to time after its adoption.
7.3 Establishing Reliability Standards. It shall be the duty of the
Participants Committee, after review of reports, recommendations and actions
of the System Operator and the Reliability Committee and such other matters as
the Participants Committee deems pertinent, to establish or approve
Reliability Standards for the bulk power supply of NEPOOL. Such Reliability
Standards shall be consistent with the directives of NERC and the NPCC and
shall be reviewed periodically by the Participants Committee and revised as
the Participants Committee deems appropriate.
7.4 Appointment and Compensation of NEPOOL Personnel. The Participants
Committee shall determine what personnel are desirable for the effective
operation and administration of NEPOOL and shall fix or authorize the fixing
of the compensation for such persons. In addition, the Participants Committee
shall determine what resources are desirable for the effective operation of
the Technical Committees and shall, on its own or pursuant to the
recommendation of a Technical Committee, authorize the incurrence of such
expenses as may be required to enable the Technical Committee, or its
subgroups, to properly perform their duties, including, but not limited to,
the retention of a consultant or the procurement of computer time.
7.5 Duties and Authority.
(a) The Participants Committee shall have the duty and requisite authority to
administer, enforce and interpret the provisions of this Agreement and any
other agreement or document approved by the Participants Committee or its
predecessor in order to accomplish the objectives of NEPOOL including the
making of any decision or determination necessary under any provision of this
Agreement or any other agreement or document approved by the Participants
Committee or its predecessor and not expressly specified to be decided or
determined by any other body.
(b) The Participants Committee shall have the authority to provide for such
facilities, materials and supplies as the Participants Committee may determine
are necessary or desirable to carry out the provisions of this Agreement.
(c) The Participants Committee shall have, in addition to the authority
provided in Section 7.3, the authority, after consultation with other NEPOOL
committees and the System Operator, to establish or approve consistent
standards with respect to any aspect of arrangements between Participants and
Non-Participants which it determines may adversely affect the reliability of
NEPOOL, and to review such arrangements to determine compliance with such
standards.
(d) The Participants Committee, or its designee, shall have the authority to
act on behalf of all Participants in carrying out any action properly taken
pursuant to the provisions of this Agreement. Without limiting the foregoing
general authority, the Participants Committee, or its designee, shall have the
authority on behalf of all Participants to execute any contract, lease or
other instrument which has been properly authorized pursuant to this Agreement
including, but not limited to, one or more contracts with the System Operator,
and to file with the Commission and other appropriate regulatory bodies: (i)
this Agreement and documents amending or supplementing this Agreement,
including the Tariff, (ii) contracts with Non-Participants or the System
Operator, and (iii) related tariffs, rate schedules and certificates of
concurrence. The Participants Committee shall, in addition, have the
authority to represent NEPOOL in proceedings before the Commission.
(e) The Participants Committee shall have the duty and requisite authority,
after consultation with other NEPOOL committees and the System Operator, to
fix the NEPOOL Objective Capability for each month of each Power Year prior to
the beginning of the Power Year and thereafter to review at least annually the
anticipated Load of the NEPOOL Participants and NEPOOL Installed Capability
for each month of such Power Year and to make such adjustments in the NEPOOL
Objective Capability as the Participants Committee may determine on the basis
of such review. Since changes in the circumstances which must be assumed by
the Participants Committee in fixing NEPOOL Objective Capability for a future
period can significantly affect the required level of NEPOOL Objective
Capability for that period, the Participants Committee shall, where
appropriate, also determine the effect on NEPOOL Objective Capability of
significant changes in circumstances from those assumed, either by fixing
alternative NEPOOL Objective Capabilities, or by adopting adjustment factors
or formulas.
(f) The Participants Committee shall have the duty and requisite authority to
establish or approve schedules fixing the amounts to be paid by Participants
and Non-Participants to permit the recovery of expenses incurred in furnishing
some or all of the services furnished by NEPOOL either directly or through the
System Operator.
(g) The Participants Committee shall have the duty and requisite authority to
provide for the sharing by Participants, on such basis as the Participants
Committee may deem appropriate, of payments and costs which are not otherwise
reimbursed under this Agreement and which are incurred by Participants or
under arrangements with Non- Participants and approved or authorized by the
Committee as necessary in order to meet or avoid short-term deficiencies in
the amount of resources available to meet the Pool's reliability objectives.
(h) The Participants Committee shall have the authority, at the time that it
acts on an Entity's application pursuant to Section 3.1 to become a
Participant, to waive, conditionally or unconditionally, compliance by such
Entity with one or more of the obligations imposed by this Agreement if the
Participants Committee determines that such compliance would be unnecessary or
inappropriate for such Entity and the waiver for such Entity will not impose
an additional burden on other Participants.
(i) The Participants Committee shall have the authority to establish standard
conditions and waivers with respect to applications by Entities for membership
in NEPOOL and to modify such standard conditions and waivers as appropriate in
connection with changed circumstances with respect to such applicants,
provided that the Participants Committee determines that the standard
conditions and waivers for such Entities will not impose an additional burden
on other Participants.
(j) The Participants Committee shall have the duty and requisite authority to
act on appeals to it from the actions of other Principal Committees if
delegated to such Committees by the Participants Committee pursuant to Section
7.5(k), to appoint the Review Board, and to appoint a special committee to
administer NEPOOL's alternate dispute resolution procedures or to take any
other action if it determines that such action is necessary or appropriate to
achieve a prompt resolution of disputes under the provisions of Section 21.1.
(k) The Participants Committee shall have the authority to delegate its
powers and duties to one or more of the Technical Committees, the System
Operator, or other entity as it sees fit provided that (i) such delegation is
clearly stated and approved by a Participant Committee action, (ii) such
delegation does not violate any other provision set forth herein, and (iii)
the action of such entity on any matter delegated to it may be appealed by any
Participant to the Participants Committee provided such an appeal is taken
prior to the end of the tenth business day following the action of the
Technical Committee, the System Operator, or such entity by giving to the
Secretary of the Participants Committee a signed and written notice of appeal,
a copy of which the Secretary shall provide to the System Operator and each
member and alternate of the Participants Committee. Pending action on the
appeal by the Participants Committee, the giving of a notice of appeal as
aforesaid shall suspend the action appealed from.
(l) The Participants Committee shall have the duty and requisite authority to
establish the NEPOOL Information Policy.
(m) The Participants Committee shall have the duty and requisite authority to
adopt and approve, amend and approve or resubmit to one or more Technical
Committees for additional comment, any matter submitted to the Participants
Committee by a Technical Committee.
(n) The Participants Committee shall have such further powers and duties as
are conferred or imposed upon it by other sections of this Agreement.
7.6 Attendance of Participants at Committee Meeting. Each Participant which
does not have the right to designate an individual voting member of the
Participants Committee shall, with the exception of meetings held pursuant to
Section 11B.9 and meetings in executive session pursuant to Section 11B.10, be
entitled to attend any meeting of the Committee or any other NEPOOL committee,
and shall have a reasonable opportunity to express views on any matter to be
acted upon at the meeting.
7.7 Appeal of Actions to Review Board. Any Participant which otherwise has
the ability to submit a matter for resolution under Section 21.1 may, in lieu
of submitting a dispute as to a Participants Committee action or failure to
take action for resolution pursuant to Section 21.1, appeal such matter to the
Review Board. Except as otherwise provided in Section 6.11, such an appeal
shall be taken prior to the end of the tenth business day following the
meeting of the Participants Committee to which the appeal relates by giving to
the Secretary of the Participants Committee by hand delivery, facsimile,
electronic mail or regular mail a signed and written notice of appeal, a copy
of which the Secretary shall provide to each Participant. If no appeal of a
Participants Committee action or failure to take action is taken, and the
action or failure to take action is not submitted for resolution pursuant to
Section 21.1, within such time period, that Participants Committee action or
failure to take action shall be final and effective. If an appeal is taken,
pending action on the appeal by the Review Board, the giving of a notice of
appeal as aforesaid shall suspend the action appealed from. To the extent any
action taken relates to the approval of a rule or procedure which must be
filed with the Commission, the rule or procedure shall not be filed until the
time for appeal or submission for dispute resolution has elapsed and, if an
appeal has been filed or submission for dispute resolution has been made,
either (i) a decision on the appeal has been issued by the Review Board, or
(ii) the earlier of resolution pursuant to Section 21.1 of the matter
submitted for dispute resolution or the termination pursuant to Section
21.1.B(2) of the suspension effect of such submission.
SECT65535ON 8
RELIABILITY COMMITTEE
8.1 Officers. The Reliability Committee shall have a Chair, Vice-Chair and
Secretary. The Chair and Secretary of the Reliability Committee shall be
appointed by the System Operator from time to time in accordance with Section
20(j). The Chair will be responsible for presiding at meetings of the
Committee and establishing agendas for its meetings in conjunction with the
Vice-Chair and shall have the powers and duties as set forth in the Committee
bylaws. The Secretary shall have the powers and duties usually incident to
such office and as set forth in the Committee bylaws. The Chair and Secretary
shall have no voting rights. The Vice-Chair shall be elected by the
Reliability Committee from among its voting members from time to time. The
Vice-Chair shall have the powers and duties usually incident to such office
and such powers and duties as set forth in the Committee bylaws, including,
without limitation, the responsibility to develop in conjunction with the
Chair, Committee meeting agendas.
8.2 Notice to Members and Alternates of Participants Committee. Prior to the
end of the fifth business day following a meeting of the Reliability
Committee, the Secretary of the Reliability Committee shall give written
notice to the System Operator and each member and alternate of the
Participants Committee of any action taken by the Reliability Committee at
such meeting.
8.3 Voting; Appeal of Actions. Votes taken by the Reliability Committee
shall be binding on the Participants only for those matters in which the
Committee has specifically designated authority under this Agreement or has
been properly delegated authority by the Participants Committee pursuant to
Section 7.5(k).
Any Participant may appeal to the Participants Committee any binding action
taken by the Reliability Committee. Such an appeal shall be taken prior to
the end of the tenth business day following the meeting of the Reliability
Committee to which the appeal relates by giving to the Secretary of the
Participants Committee a signed and written notice of appeal, a copy of which
the Secretary shall provide to the System Operator and each member and
alternate of the Participants Committee. Pending action on the appeal by the
Participants Committee, the giving of a notice of appeal as aforesaid shall
suspend the action appealed from.
8.4 Responsibilities. The Reliability Committee shall perform the following
functions, in conjunction with the System Operator as appropriate, and shall
recommend action to the System Operator, Participants Committee or
Transmission Owners, as appropriate, with respect thereto:
(a) provide input to the Participants Committee, Transmission Owners, and
System Operator, as appropriate, on transmission facilities and the
development of a regional transmission plan in order to achieve the objectives
of NEPOOL;
(b) following appropriate study, recommend NEPOOL Objective Capability for
each Power Year;
(c) periodically review the procedures used to calculate NEPOOL Installed
Capability, NEPOOL Objective Capability and NEPOOL Capability Responsibility;
(d) periodically prepare short and long term load forecasts for use in NEPOOL
studies and operations and to meet requirements of regulatory agencies;
(e) review communications and liaison arrangements between NEPOOL and
governmental authorities on power supply, environmental, load forecasting, and
transmission issues;
(f) coordinate the collection and exchange of necessary system data and
future plans related to reliability for use in NEPOOL planning and to meet
requirements of regulatory agencies;
(g) coordination of studies of, and provide information to Participants on,
maintenance schedules for the supply and demand-side resources and
transmission facilities of the Participants;
(h) based on appropriate studies, recommend for Participants Committee
approval Reliability Standards to assure the reliable operation and facilitate
the efficient operation of the NEPOOL Control Area bulk power system and those
operating rules which guide the implementation of the Reliability Standards.
Such Reliability Standards and operating rules shall include, without
limitation, the following:
(i) standards to determine the current Annual Peak, Adjusted Annual Peak,
Monthly Peak, Adjusted Monthly Peak, and aggregate obligations of the
Participants in each of the NEPOOL Markets;
(ii) standards to establish short and long term load forecasts for use in
NEPOOL operations and to meet requirements of regulatory agencies;
(iii) standards with respect to the administration and enforcement of, and
reporting pursuant to, NERC and NPCC policies and requirements;
(iv) standards for use in planning and design of the NEPOOL interconnected
bulk power system;
(v) standards to ensure the continuous reliability of the bulk power
transmission system, such standards to include, without limitation, criteria
and rules relating to protective equipment, transfer limits, voltage
schedules, voltage guides, operating guides, sub-area reserves, switching,
voltage control, load shedding, emergency and restoration procedures, and the
coordination of scheduling of the operation and maintenance of supply and
demand-side resources and transmission facilities of the Participants;
(vi) standards for determining the capabilities of each electric generating
unit or combination of units in which a Participant has an Entitlement in a
uniform manner applying generally accepted engineering principles; and
(vii) as appropriate, reliability standards for interpool coordination
transactions.
(i) review proposed supply and demand-side resource plans and the proposed
transmission and interconnection plans of Participants pursuant to Section
18.4 and, based on such review, recommend action regarding such proposed
plans.
(j) make recommendations regarding procedures for dispatch infrastructure
(i.e. voice and data communications protocols, AGC pulsing arrangements,
Energy Management System and System Control and Data Acquisition interfaces,
Satellite relations, etc.);
(k) provide input and make recommendations with respect to the reliability
considerations of general system operations (i.e. commitment/ decommitment,
real time dispatch, review and approval of distribution of reserves, etc.);
(l) recommend to the Participants Committee the retention of a consultant,
procurement of computer time, or the incurrence of consultant expenses or such
other expenses as may be required to enable the Reliability Committee, its
subcommittees, and task forces properly to perform their duties;
(m) make recommendations to the Participants Committee, Transmission Owners,
and System Operator, as appropriate, with respect to development and amendment
of interconnection procedures and documents related to such procedures;
(n) to the extent appropriate, develop criteria, guidelines and methodologies
to assure consistency in monitoring and assessing conformance of Participant
and regional transmission plans to accepted reliability criteria.
8.5 Establishment of Subcommittees and Task Forces. The Reliability
Committee shall have the authority to establish subcommittees and task forces
for particular studies.
8.6 Further Powers and Duties. The Reliability Committee shall have such
further powers and duties as are consistent with the duties and
responsibilities set forth herein or as may be properly delegated to it by the
Participants Committee.
SECT65535ON 9
TARIFF COMMITTEE
9.1 Officers. The Tariff Committee shall have a Chair, Vice-Chair and
Secretary. The Chair and Secretary of the Tariff Committee shall be appointed
by the System Operator from time to time in accordance with Section 20(j).
The Chair will be responsible for presiding at meetings of the Committee and
establishing agendas for its meetings in conjunction with the Vice-Chair and
shall have the powers and duties as set forth in the Committee bylaws. The
Secretary shall have the powers and duties usually incident to such office and
as set forth in the Committee bylaws. The Chair and Secretary shall have no
voting rights. The Vice-Chair shall be elected by the Tariff Committee from
among its voting members from time to time. The Vice-Chair shall have the
powers and duties usually incident to such office and such powers and duties
as set forth in the Committee bylaws, including, without limitation, the
responsibility to develop in conjunction with the Chair, Committee meeting
agendas.
9.2 Notice to Members and Alternates of Participants Committee. Prior to the
end of the fifth business day following a meeting of the Tariff Committee, the
Secretary of the Tariff Committee shall give written notice to the System
Operator and each member and alternate of the Participants Committee of any
action taken by the Tariff Committee at such meeting.
9.3 Voting; Appeal of Actions. Votes taken by the Tariff Committee shall be
binding on the Participants only for those matters in which the Committee has
specifically designated authority under this Agreement or has been properly
delegated authority by the Participants Committee pursuant to Section 7.5(k).
Any Participant may appeal to the Participants Committee any binding action
taken by the Tariff Committee. Such an appeal shall be taken prior to the end
of the tenth business day following the meeting of the Tariff Committee to
which the appeal relates by giving to the Secretary of the Participants
Committee a signed and written notice of appeal, a copy of which the Secretary
shall provide to the System Operator and each member and alternate of the
Participants Committee. Pending action on the appeal by the Participants
Committee, the giving of a notice of appeal as aforesaid shall suspend the
action appealed from.
9.4 Responsibilities. The Tariff Committee shall perform the following
functions, in conjunction with the System Operator as appropriate, and shall
recommend action to the System Operator, Participants Committee or
Transmission Owners, as appropriate, with respect thereto:
(a) develop appropriate billing procedures for transmission and ancillary
services pursuant to this Agreement and the Tariff;
(b) develop and recommend to the Participants Committee and the Transmission
Owners Committee, as appropriate, (i) amendments, additions and other changes
to the Tariff and (ii) related Tariff rules;
(c) providing input to the System Operator on the development of
Administrative Procedures with respect to the administration of the Tariff and
the OASIS;
(d) to the extent appropriate, conduct and/or review such studies and make
such determinations as are assigned to the Committee pursuant to this
Agreement and the Tariff with respect to financial treatment of additions to
or upgrades of PTF;
(e) recommend to the Participants Committee the retention of a consultant,
procurement of computer time, or the incurrence of consultant expenses or such
other expenses as may be required to enable the Tariff Committee, its
subcommittees, and task forces properly to perform their duties.
9.5 Establishment of Subcommittees and Task Forces. The Tariff Committee
shall have the authority to establish subcommittees and task forces for
particular studies.
9.6 Further Powers and Duties. The Tariff Committee shall have such further
powers and duties as are consistent with the duties and responsibilities set
forth herein or as may be properly delegated to it by the Participants
Committee.
SECT65535ON 10
MARKETS COMMITTEE
10.1 Officers. The Markets Committee shall have a Chair, Vice-Chair and
Secretary. The Chair and Secretary of the Markets Committee shall be
appointed by the System Operator from time to time in accordance with Section
20(j). The Chair will be responsible for presiding at meetings of the
Committee and establishing agendas for its meetings in conjunction with the
Vice-Chair and shall have the powers and duties as set forth in the Committee
bylaws. The Secretary shall have the powers and duties usually incident to
such office and as set forth in the Committee bylaws. The Chair and Secretary
shall have no voting rights. The Vice-Chair shall be elected by the Markets
Committee from among its voting members from time to time. The Vice-Chair
shall have the powers and duties usually incident to such office and such
powers and duties as set forth in the Committee bylaws, including, without
limitation, the responsibility to develop in conjunction with the Chair,
Committee meeting agendas.
10.2 Notice to Members and Alternates of Participants Committee. Prior to the
end of the fifth business day following a meeting of the Markets Committee,
the Secretary of the Markets Committee shall give written notice to the System
Operator and each member and alternate of the Participants Committee of any
action taken by the Markets Committee at such meeting.
10.3 Voting; Appeal of Actions. Votes taken by the Markets Committee shall be
binding on the Participants only for those matters in which the Committee has
specifically designated authority under this Agreement or has been properly
delegated authority by the Participants Committee pursuant to Section 7.5(k).
Any Participant may appeal to the Participants Committee any binding action
taken by the Markets Committee. Such an appeal shall be taken prior to the
end of the tenth business day following the meeting of the Markets Committee
to which the appeal relates by giving to the Secretary of the Participants
Committee a signed and written notice of appeal, a copy of which the Secretary
shall provide to the System Operator and each member and alternate of the
Participants Committee. Pending action on the appeal by the Participants
Committee, the giving of a notice of appeal as aforesaid shall suspend the
action appealed from.
10.4 Responsibilities. The Markets Committee shall perform the following
functions, in conjunction with the System Operator as appropriate, and shall
recommend action to the System Operator, Participants Committee or
Transmission Owners, as appropriate, with respect thereto:
(a) based on appropriate studies, develop market procedures to assure the
reliable operation and facilitate the efficient operation of the NEPOOL
Control Area bulk power supply;
(b) (i) evaluate studies of the market implications of maintenance schedules
for the supply and demand-side resources and transmission facilities of the
Participants and operable capacity margins, and (ii) develop market procedures
for scheduling maintenance for supply and demand resources and transmission
resources.
(c) to the extent appropriate to assure the efficient operation of the NEPOOL
Markets, develop reasonable standards, criteria and rules relating to
protective equipment, switching, voltage control, load shedding, emergency and
restoration procedures, and the operation and maintenance of supply and
demand-side resources and transmission facilities of the Participants;
(d) develop procedures for determining the market implications of the
seasonal capabilities of each electric generating unit or combination of units
in which a Participant has an Entitlement;
(e) develop procedures for determining as appropriate from time to time the
current Annual Peak, Adjusted Annual Peak, Monthly Peak, Adjusted Monthly
Peak, Installed Capability Responsibility, and obligations for Energy,
Operating Reserve and AGC of each Participant;
(f) develop Market Rules and periodically review and recommend changes
thereto as appropriate. Such Market Rules shall include, without limitation,
the following:
(i) submission of Bid Prices and the determination of prices for each of the
NEPOOL Markets;
(ii) determination for each Participants of its obligations under each of the
NEPOOL Markets;
(iii) establishment or approval of appropriate billing procedures for
market transactions pursuant to this Agreement;
(iv) calculation and equitable apportionment of losses incurred in connection
with Interchange Transactions; and
(v) interpool market contract coordination as appropriate.
(g) develop operating procedures relating to the administration of the NEPOOL
Markets and periodically review and recommend changes thereto as appropriate;
(h) recommend the retention of a consultant, procurement of computer time, or
the incurrence of consultant expenses or such other expenses as may be
required to enable the Markets Committee, its subcommittees, and task forces
properly to perform their duties.
10.5 Establishment of Subcommittees and Task Forces. The Markets Committee
shall have the authority to establish subcommittees and task forces for
particular studies.
10.6 Further Powers and Duties. The Markets Committee shall have such further
powers and duties as are consistent with the duties and responsibilities set
forth herein or as may be properly delegated to it by the Participants
Committee.
10.7 Development of Rules Relating to Non-Participant Supply and Demand-side
Resources. It is recognized that arrangements between Participants and Non-
Participants with respect to the Non-Participants' supply and demand-side
resources may create special problems in the application of Sections 12 and
14. Accordingly, the Markets Committee shall analyze such special problems
and recommend to the Participants Committee appropriate rules for reflecting
such resources in the Installed System Capability of a Participant which
enters into such an arrangement and for the treatment of such arrangements for
Energy, Operating Reserve and AGC purposes. Upon approval by the Participants
Committee, such rules shall supersede the provisions of Sections 12 and 14
(and the related definitions in Section 1) to the extent of any conflict
therewith upon acceptance by the Commission.
SECT65535ON 11
FURTHER RESTRUCTURING
The NEPOOL Participants undertake to finalize by March 31, 2000 the
negotiation of more comprehensive arrangements for the reassignment of
appropriate administrative responsibilities to the System Operator in the
Interim ISO Agreement.
SECTION 11A
REVIEW BOARD
11A.1 Organization. There shall be a Review Board which, in addition to
responsibility under Section 11B.12, shall be responsible for ruling on
appeals taken from actions of the Participants Committee and for advising the
Participants Committee as to the issues raised on any appeals before it
provided that appeals from actions of the System Operator shall not be taken
to the Review Board. In ruling on appeals, the Review Board shall consider,
among other things, whether the action is consistent with Commission policies.
In addition, if the appeal relates to an amendment to the Agreement or market
rule, the Review Board shall consider the extent to which such amendment
imposes a burden on the Participants which do not vote in favor of the
amendment that is materially greater in degree than that imposed on the
Participants which have voted in favor of the amendment. The Review Board
shall not have the right to review or otherwise participate in actions of the
System Operator or to take any action with respect to any matter involving a
dispute between the System Operator and either NEPOOL or any Participant. The
Participants agree that the process of selecting the Review Board shall
commence upon the initial formation of the Participants Committee. Until the
initial organization of the Review Board is completed, the Board of Directors
of the System Operator or a committee thereof consisting of not less than
three System Operator Directors designated by the System Operator Board of
Directors shall perform the functions of the Review Board, provided that the
provisions of Sections 11A.2 through 11A.6 shall not be applicable to the
Board of Directors of the System Operator acting as a Review Board. All
expenses incurred by the System Operator as a result of the Board of Directors
in acting as the Review Board shall be NEPOOL expenses.
11A.2 Composition. The Review Board shall be composed of five members.
The Review Board Members shall initially be selected by the Participants
Committee from a slate of candidates. An independent consultant, retained by
the Participants Committee, shall prepare a list of persons qualified and
willing to serve on the Review Board. A subcommittee appointed by the
Participants Committee shall review the list and distribute to the members of
the Participants Committee a slate from among the list proposed by the
independent consultant, along with information on the background and
experience of the persons on the slate appropriate to evaluating their fitness
for service on the Review Board. If the Participants Committee fails to
select a full Review Board from the slate proposed by the subcommittee, the
Committee shall direct the independent consultant to propose a further list of
nominees for consideration at the next regular meeting of the Participants
Committee. Thereafter, prior to the expiration of a Review Board Member's
term, and upon the occurrence of any vacancy on the Board, the Participants
Committee shall select a successor Member.
11A.3 Qualifications. The Review Board Members shall be independent
experts knowledgeable about issues typically faced by entities engaged in
energy production, transmission, distribution and sale under Federal or State
regulation. A Review Board Member shall not be, and shall not have been at
any time within five years of election to the Review Board, a director,
officer or employee of a Participant or of a Related Person of a Participant.
While serving on the Review Board, a Review Board Member shall have no direct
business relationship or other affiliation with any Participant or its Related
Persons and shall otherwise be subject to the same independence requirements
imposed on Directors of the System Operator Board of Directors.
11A.4 Term. A Review Board Member shall serve for a term of three years;
provided, however, that two of the Review Board Members selected initially
shall be chosen by lot to serve a term of two years, two of the Review Board
Members selected initially shall be chosen by lot to serve a term of three
years and the other Review Board Member selected initially shall serve a term
of four years.
11A.5 Meetings. Meetings of the Review Board may be conducted in person
or by telephone or other electronic means by means of which all persons
participating in the meeting can communicate in real time with each other.
11A.6 Bylaws. To the extent not inconsistent with any provision of this
Agreement, the Participants Committee shall adopt bylaws establishing
procedures for the Review Board's activities as it may deem appropriate,
including but not limited to bylaws governing the scheduling, noticing and
conduct of meetings of the Review Board, a code of conduct, selection of a
Chair and Vice-Chair of the Review Board, and action by the Review Board
without a meeting. Such bylaws shall not modify or be inconsistent with any
of the rights or obligations established by this Agreement.
11A.7 Procedure on Appeal of Participant Committee Action or Failure to
Take Action.
(a) Submission of an Appeal: A Participant seeking review ("Appealing
Party") by the Review Board of action of the Participants Committee shall give
written notice of the appeal in accordance with Section 7.7, and the appeal
shall have the suspension effect specified in Section 7.7.
(b) Intervenors and Time Limits: Any other Participant that wishes to
participate in the appeal proceeding hereunder shall give signed written
notice to the Secretary of the Participants Committee no later than ten (10)
business days after the Appealing Party has given notice of appeal and shall
upon the approval of the Review Board be permitted to participate in the
appeal.
(c) Procedural Rules: The procedural rules (if any), for the conduct of the
appeal shall be determined by the Review Board in consultation with the
Participants Committee and each Appealing Party on a case-by-case basis.
(d) Pre-hearing Submissions: Each Appealing Party shall provide the Review
Board, within 15 days of the giving of its notice of appeal or such other time
as permitted by the Review Board, a brief written statement of its complaint
and a statement of the remedy or remedies it seeks, accompanied by copies of
any documents or other materials it wishes the Review Board to review. The
Participants Committee and, as appropriate, any other Participant
participating in the appeal will provide the Review Board, within 10 days of
the Appealing Party's submission or such other time as permitted by the
Review Board, copies of the minutes of all NEPOOL committee meetings at which
the matter was discussed and if deemed appropriate by the Participants
Committee or otherwise requested by the Review Board a brief description of
the action (or failure to act) being appealed and a brief statement explaining
why the Participants Committee believes its action (or failure to act) should
be upheld by the Review Board, together with copies of documents or other
materials referenced in such submission for the Review Board to review and
materials, if any, which interested Participants provide to the Secretary of
the Participants Committee and reasonably request be submitted to the Review
Board.
In addition, each party shall designate one or more individuals to be
available to answer questions the Review Board may have on the documents or
other materials submitted. The answers to all such questions shall be reduced
to writing by the party providing the answer and a copy shall be made
available to any requesting Participant.
(e) Hearing: A hearing (if any) will be held as soon as is reasonably
practicable.
(f) Decision: The Review Board's decision, to the extent practicable, shall
be due, within ninety (90) days of the giving of notice of the appeal.
11A.8 Effect of a Review Board Decision.
(a) Each Review Board Member shall have one vote and a decision of the Review
Board, either to grant or deny an appeal, shall require affirmative votes by a
majority of the Review Board Members but not less than three (3) such Members.
(b) (i) Appeal denied. If the Review Board denies the appeal, the action of
the Participants Committee will be final and effective, subject to Commission
acceptance if and as required.
(ii) Appeal granted. If the Review Board grants the appeal, the Review
Board's determination (granting the appeal) will be final and the action of
the Participants Committee shall not take effect.
(c) If the Review Board grants an appeal, the Review Board may submit a
proposed resolution of the matter that was the subject of the appeal to the
Participants Committee. The Participants Committee may, but is not required
to, take further action with regard to the matter. If the Participants
Committee votes on an action regarding the matter (including a vote not to act
on the matter), the action or non-action of the Participants Committee shall
be subject to further appeal by any Participant to the Review Board in
accordance with Section 7.7. Any proposed resolution that the Review Board
submits to the Participants Committee is advisory only.
11A.9 An action or failure to act once appealed by a Participant to the
Review Board may not be subject to the alternative dispute resolution
provisions of Section 21.1, regardless of the outcome of the appeal.
Conversely, an action or failure to act submitted for resolution by a
Participant pursuant to Section 21.1 may not be brought before the Review
Board. If more than one Participant appeals and/or submits for alternative
dispute resolution under Section 21.1 the same issue, the Participant that
first takes such action shall determine whether the issue is to be heard by
the Review Board or considered under Section 21.1; provided that each
Participant challenging an action or failure to take action shall have the
same opportunity to present its case and may not be excluded from
participating under Section 11A.7(b).
11A.10 Any action taken or failure to take action by the Review Board does not
restrict or limit in any way the rights of a Participant to seek review by the
Commission, or a review in any other forum available to the Participant and
there shall be no requirement to submit an appeal to the Review Board
concerning any amendment, action or inaction by the Participants Committee
prior to a Participant exercising any such rights to seek review by the
Commission or any other forum with jurisdiction.
11A.11 The Review Board may not take action that is inconsistent with or
infringes upon any of the rights set forth in Section 17A.
SECTION 11B
TRANSMISSION OWNERS COMMITTEE
11B.1 Organization. There shall be a Transmission Owners Committee
established pursuant to this Section 11B which shall implement the rights
reserved to Transmission Owners by Section 17A.
11B.2 Membership. Membership on the Transmission Owners Committee shall
be open to all Transmission Owners, regardless of their individual choices in
Sector membership under Section 6.2.
11B.3 Appointment of Members and Alternates. A Transmission Owner shall
join the Transmission Owners Committee by written notice delivered to the
Secretary of the Transmission Owners Committee, and shall designate in the
notice the initial member appointed by it for the Committee and an alternate
of the member. In the absence of the member, the alternate shall have all the
powers of the member, including the power to vote.
11B.4 Term of Members. A member of the Transmission Owners Committee
appointed by a Transmission Owner shall serve until replaced by the
Transmission Owner which appointed it or until such Transmission Owner ceases
to be a Participant or otherwise lose its right to appoint the member.
Appointment or replacement of a member shall be effected by a Transmission
Owner by giving written notice of such appointment or replacement to the
Secretary of the Transmission Owners Committee.
11B.5 Regular and Special Meetings. The Transmission Owners Committee
shall hold its annual meeting in December or January at such time and place as
the Chair shall designate and shall hold other meetings in accordance with a
schedule adopted by the Committee or at the call of the Chair. Thirty percent
(30%) or more of the voting members of the Transmission Owners Committee may
call a special meeting of the Committee in the event that the Chair shall fail
to call such a meeting within three business days following the Chair's
receipt from such members of a request specifying the subject matters to be
acted upon at the meeting.
11B.6 Notice of Meetings. Written notice of each meeting of the
Transmission Owners Committee shall be given to each Transmission Owner and to
other Participants not less than five (5) business days prior to the date of
the meeting.
11B.7 Attendance. Regular and special meetings may be conducted in
person, by telephone, or other electronic means by means of which all persons
participating in the meeting can communicate in real time with each other. In
order to vote during the course of a meeting, attendance is required in person
or by telephone or other real time electronic means by a voting member or its
alternate or a duly designated agent who has been given, in writing, the
authority to vote for the member on all matters or the proxy to vote for the
member on specific matters.
11B.8 Votes. Any action taken by the Transmission Owners Committee shall
require the concurrence of:
(i) representatives of at least two-thirds of the Transmission Owners
provided that Transmission Owners that are Related Persons to one another
shall together have a single vote; and
(ii) representatives of Transmission Owners having at least two-thirds of the
Weighted Votes of all Transmission Owners, where each Transmission Owner's
Weighted Vote is equal to its original capital investment in its PTF as of the
end of the most recent year for which figures are available.
Notwithstanding the foregoing, if a vote is taken and paragraph (i) above is
satisfied but paragraph (ii) above is not, the action being voted on by the
Transmission Owners Committee shall pass if (1) there are seven or more
Transmission Owners on the Committee and fewer than three Transmission Owners
oppose the action or (2) there are less than seven Transmission Owners on the
Committee and only one Transmission Owner opposes the action.
11B.9 Appointment of Task Forces or Working Groups. The Transmission
Owners Committee shall have the authority to appoint task forces or working
groups to address matters for which the Committee is responsible.
Notwithstanding Section 7.6, such tasks force or working groups may be limited
to Transmission Owners only.
11B.10 Officers. At its annual meeting, the Transmission Owners Committee
shall elect from its members a Chair and a Vice-Chair; it shall also elect a
Secretary who need not be a member of the Committee. These officers shall
have the powers and duties usually incident to such offices, including the
right to convene an executive session of the Transmission Owners Committee to
consider and vote upon submittals to the Commission or litigation strategy.
11B.11 Adoption of Bylaws. The Transmission Owners Committee may adopt
bylaws, consistent with this Agreement, governing procedural matters including
the conduct of its meetings.
11B.12 Review of Committee Actions. To the extent the Commission determines,
pursuant to Section 17A.7, that Transmission Owners have the exclusive right
to make unilateral filings under Section 205 of the Federal Power Act, a
Transmission Owner may either submit a dispute for resolution pursuant to
Section 21.1 or appeal to the Review Board any action taken by the
Transmission Owners Committee with respect to such a Section 205 filing. Such
a submission or appeal shall be taken prior to the end of the tenth business
day following the meeting of the Transmission Owners Committee to which the
submission or appeal relates by giving to the Secretary of the Transmission
Owners Committee a signed and written notice of submission or appeal. Pending
action on an appeal by the Review Board, the giving of a notice of appeal as
aforesaid shall suspend the action appealed from. For purposes of the
application of the dispute resolution process of Section 21.1 and the
suspension effect of a submission to alternative dispute resolution, Section
21.1 shall be applied as if the Transmission Owners Committee were the
Participants Committee.
SECTION 11C
LIAISON COMMITTEE
11C.1 Organization; Duties. There shall be a Liaison Committee which
shall be an advisory committee only responsible to act as a steering committee
for managing NEPOOL business through the committee process and facilitating
communications between NEPOOL and the System Operator and among Participants.
The Liaison Committee's duties as a steering committee include, without
limitation, recommending that matters be assigned to particular committees for
action where the subject matter of a proposed rule or other action potentially
falls in the purview of more than one committee and assuring appropriate input
from other committees as needed.
11C.2 Membership. The Liaison Committee shall have the following members:
the Chair and Vice-Chair of each of the Principal Committees; the Chair of the
Transmission Owners Committee; a Participant representative of each Sector
that is not otherwise represented on the Liaison Committee; the chief
executive officer of the System Operator; and two members of the System
Operator's Board of Directors.
11C.3 Regular and Special Meetings. The Liaison Committee shall hold
meetings in accordance with a schedule adopted by the Committee or at the call
of the Co-Chairs.
11C.4 Notice of Meetings. Written notice of each meeting of the Liaison
Committee shall be given to each member of the Committee and all members of
the Participants Committee not less than five business days prior to the date
of the meeting.
11C.5 Attendance. Regular and special meetings may be conducted in
person, by telephone, or other electronic means by means of which all persons
participating in the meeting can communicate in real time with each other.
Participants Committee members and alternates may attend meetings of the
Liaison Committee. Any individual that is not a member of the Liaison
Committee may participate at a meeting at the invitation of a Co-Chair.
11C.6 Officers. The Co-Chairs of the Liaison Committee shall be the chief
executive officer of the System Operator and the Chair of the Participants
Committee. The Liaison Committee shall elect a Secretary who need not be a
member of the Committee. These officers shall have the powers and duties
usually incident to such offices.
PART THREE
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▇▇▇▇▇▇▇▇▇▇▇ 12
INSTALLED CAPABILITY OBLIGATIONS AND PAYMENTS
12.1 Obligations to Provide Installed Capability.
(a) Each Participant shall have Installed System Capability during each hour
of each month at least sufficient to satisfy its Installed Capability
Responsibility for the month.
(b) [Deleted].
12.2 Computation of Installed Capability Responsibilities.
(a) (1) At the conclusion of each month, the System Operator under the
direction of the Participants Committee shall determine each Participant's
tentative Installed Capability Responsibility in Kilowatts for such month in
accordance with the following formula:
X = (P(A-N)+Np)(1+T) - C(Dp)
As used in this Section 12.2(a)(1), the symbols used in the formula and the
additional symbols defined below have the following meanings:
X is the Participant's tentative Installed Capability Responsibility for
the month.
P is the value of the Participant's fraction for the month as determined in
accordance with the following formula:
P = (Fp + Dp) / (F + D), wherein:
Fp is the Participant's Adjusted Monthly Peak for the month less any
Kilowatts received by such Participant pursuant to a contract of a type that
traditionally has been treated by NEPOOL as a firm contract for the purposes
of this Section prior to January 1, 1999, but which does not constitute a
Firm Contract as defined in this Agreement.
Dp is the Participant's actual or potential load reduction resulting from
its NEPOOL Interruptible and Dispatchable Loads for the month.
F is the aggregate for the month of the Adjusted Monthly Peaks for all
Participants less any Kilowatts received by any Participant pursuant to a
contract of a type that traditionally has been treated by NEPOOL as a firm
contract for the purposes of this Section prior to January 1, 1999, but which
does not constitute a Firm Contract as defined in this Agreement.
D is the aggregate for the month of the actual or potential load reduction
resulting from all Participants' NEPOOL Interruptible and Dispatchable Loads.
C is the factor, which when multiplied by D in megawatts, results in the
reduction to NEPOOL Objective Capability that would result from including D in
the determination of NEPOOL Objective Capability. The value for C shall be
adopted by the Participants Committee each time it fixes NEPOOL Objective
Capability pursuant to Section 7.6(e).
A is the NEPOOL Objective Capability in megawatts for the month as fixed by
the Participants Committee pursuant to Section 7.
N is the aggregate of the New Unit Adjustments for all Participants for the
month as determined by the Participants Committee in accordance with Section
12.2(a)(2).
Np is the aggregate of the Participant's New Unit Adjustments for the month,
as determined by the Participants Committee, and is equal to the aggregate of
the Participant's adjustments for each New Unit included in its Installed
System Capability during the hour of the coincident peak load of the
Participants for the month. The Participant's adjustment for each New Unit
may be positive or negative and shall be the product of (i) the Participant's
Installed Capability Entitlement in the New Unit during the hour of the
coincident peak load of the Participants for the month, times (ii) the New
Unit Adjustment Factor applicable to the New Unit as determined in accordance
with Section 12.2(a)(2).
T is the Participant's Unit Availability Adjustment Factor for the month.
T may be positive or negative and shall be determined in accordance with the
following formula:
T = (I-H) x J x R, wherein:
100
I for the Participant for the month is the percentage which represents the
weighted average (using the Installed Capability of each Installed Capability
Entitlement for such month for the weighting) of the Four Year Installed
Capability Target Availability Rates of the Installed Capability Entitlements
which are included in the Participant's Installed System Capability during the
hour of the coincident peak load of the Participants for the month. The Four
Year Target Availability Rate for an Installed Capability Entitlement for any
month is the average of the monthly Target Availability Rates for the
forty-eight months which comprise the period of four consecutive calendar
years ending within the Power Year which includes such month, as determined on
the basis of the Target Availability Rates for each of the forty-eight
months, and as applied on a basis which is consistent with the fuel or
maturity status of the unit for each of the forty-eight months; provided,
however, that for the purpose of determining the Four Year Target Availability
Rate (i) for months included within the Power Year which commences June 1,
1999, the determination shall be made for the months of June through October
on the basis of the calendar years 1995 through 1998, and shall be made for
the months of November through May on the basis of the calendar years 1996
through 1999, and (ii) for months included within the Power Year which
commences June 1, 2000, the determination shall be made on the basis of the
calendar years 1996 through 1999. The Target Availability Rates shall be
those utilized by the Participants Committee in its most recent determination
of NEPOOL Objective Capability pursuant to Section 7.
H for the Participant for the month is the percentage which represents the
weighted average (using the Installed Capability of each Installed Capability
Entitlement for such month for the weighting) of the Four Year Actual
Availability Rates of the Installed Capability Entitlements which are included
in the Participant's Installed System Capability during the hour of the
coincident peak load of the Participants for the month. The Four Year Actual
Availability Rate for an Installed Capability Entitlement for any month is the
percentage which represents the average of the amounts determined for H1 for
the four applicable Twelve-Month Measurement Periods within the forty-eight
months which comprise the period of four consecutive calendar years ending
within the Power Year which includes such month; provided, however, that for
the purpose of determining the Four Year Actual Availability Rate (i) for
months included within the Power Year which commences June 1, 1999, the
determination shall be made for the months of June through October on the
basis of the calendar years 1995 through 1998, and shall be made for the
months of November through May on the basis of the calendar years 1996
through 1999, and (ii) for months included within the Power Year which
commences June 1, 2000, the determination shall be made on the basis of the
calendar years 1996 through 1999. A Twelve-Month Measurement Period is a
period of twelve sequential months. For purposes of this sequence, the first
month in the four years and the immediately succeeding months shall be
considered to follow the forty-eighth month in the four- year period. The four
applicable Twelve-Month Measurement Periods to be used in the determination of
H1 for an Installed Capability Entitlement shall be the four sequential
Twelve-Month Measurement Periods out of the twelve possible combinations which
yield the highest H1.
H1 for an Installed Capability Entitlement in a unit or combination of units
for a Twelve-Month Measurement Period is its Actual Availability Rate. The
Actual Availability Rate of an Installed Capability Entitlement for a
Twelve-Month Measurement Period is a percentage and shall be the greater of:
(i) the percentage of (a) the amount of generation which could have been
received with respect to the Installed Capability Entitlement if the unit or
combination of units had been fully available at its full Installed Capability
throughout the Twelve- Month Measurement Period, which is represented by (b)
the amount of generation which was actually available during such period, or
(ii) the average Target Availability Rate expressed as a percentage for the
Installed Capability Entitlement for the Twelve-Month Measurement Period less
twenty percentage points. The average Target Availability Rate of an
Installed Capability Entitlement for a Twelve-Month Measurement Period is a
percentage and is the average of the monthly Target Availability Rates for
the months which comprise the Twelve-Month Measurement Period, as determined
on the basis of the Target Availability Rates for each of the twelve months,
and as applied on a basis which is consistent with the fuel or maturity status
of the unit or combination of units for each month in the Twelve-Month
Measurement Period. The Target Availability Rates shall be those utilized by
the Participants Committee in its most recent determination of NEPOOL
Objective Capability pursuant to Section 7.
J for the month is the estimated percentage point change in NEPOOL
Objective Capability which would be required as a result of a one percentage
point change in the weighted average equivalent availability rate of the
generating units in which the Participants have Installed Capability
Entitlements. The value for J shall be adopted by the Participants Committee
each time it fixes NEPOOL Objective Capability pursuant to Section 7.
R for the month is the phase-out factor for the month, which shall be as
follows:
R=0.75 for the Power Year beginning November 1, 1997.
R=0.50 for the 12 month period beginning November 1, 1998.
R=0.25 for the 12 month period beginning November 1, 1999.
R=0 for the 12 month period beginning November 1, 2000 and all
subsequent 12 month periods.
(2) A New Unit Adjustment Factor for a New Unit shall be determined to assign
the effects of the New Unit on NEPOOL Objective Capability to those
Participants with Entitlements in the New Unit. The New Unit Adjustment
Factor for each New Unit for each month shall be determined by the System
Operator under the direction of the Participants Committee in accordance with
the following formula:
n = R(K1(c-C) + K2(f-F) + K3(m-M) + K4(d-D) + K5(f- F)c2)
As used in this Section 12.2(a)(2), the symbols used in the formula have the
following meanings:
R is the phase out factor as defined in Section 12.2(a)(1) above.
n is the New Unit Adjustment Factor, expressed as a fraction, for the month
for a New Unit.
c is the Winter Capability of the New Unit.
C is the Winter Capability of the Proxy Unit, which shall be the number of
Kilowatts, as determined by the Participants Committee, which would result in
the NEPOOL Objective Capability being approximately the same if the
generating units in which the Participants have Installed Capability
Entitlements were all units possessing Proxy Unit characteristics.
f is the equivalent forced outage rate of the New Unit, expressed as a
fraction of a year, utilized in the determination by the Participants
Committee of NEPOOL Objective Capability for the month.
F is the equivalent forced outage rate of the Proxy Unit. F, a fraction,
shall be the weighted average equivalent forced outage rate (using the Winter
Capability of each generating unit for such weighting) of the generating
units in which the Participants have Installed Capability Entitlements,
adjusted to compensate for the rounding of the annual maintenance outage
requirement of the Proxy Unit.
m is the four-year average annual maintenance outage requirement of the New
Unit, expressed as a fraction of a year. The data used to determine m shall
include the annual maintenance outage requirements for the current Power Year
and the next three Power Years, as utilized for the New Unit in the most
recent determination by the Participants Committee of NEPOOL Objective
Capability pursuant to Section 7.
M is the annual maintenance outage requirement of the Proxy Unit. M shall
be a fraction, the numerator of which shall be the number of weeks (rounded to
the nearest full number) that most closely approximates the weighted four-
year average annual maintenance outage requirement (using the Winter
Capability of each generating unit for such weighting) for the generating
units in which the Participants have Installed Capability Entitlements, and
the denominator of which shall be 52 weeks.
d is the summer derating of the New Unit, expressed as a fraction of the
Winter Capability of the New Unit.
D is the summer derating of the Proxy Unit. D shall be a fraction and
shall be equal to the weighted average fractional summer derating (using the
Winter Capability of each generating unit for such weighting) of the
generating units in which the Participants have Installed Capability
Entitlements.
K1, K2, K3, K4, and K5
are conversion coefficients for each of the Summer and Winter Periods,
determined by regression analysis such that the product for the Installed
Capability of a New Unit times its New Unit Adjustment Factor approximates
the effect on NEPOOL Objective Capability of the New Unit.
Proxy Unit characteristics and conversion coefficients contained in the
formula shall be adopted by the Participants Committee and reviewed every five
years (or more frequently if the Participants Committee determines that
exceptional circumstances require an earlier review) and revised as
necessary.
If a New Unit has unique characteristics affecting NEPOOL Objective Capability
which are not adequately reflected in the New Unit Adjustment Factor formula,
the Participants Committee shall determine for such New Unit a New Unit
Adjustment Factor which accounts for the New Unit's unique characteristics.
The New Unit Adjustment Factor for any Restricted Unit (as defined in Section
15.37B of the Prior NEPOOL Agreement) for which proposed plans were submitted
subsequent to November 1, 1990 for review pursuant to Section 18.4 or its
predecessor section in the Prior NEPOOL Agreement (or, in the case of a unit
with a rated capacity of less than 5 MW, for which notification was first
given to NEPOOL subsequent to November 1, 1990) and for the Peabody Municipal
Light Plant's Waters River #2 unit shall be determined in accordance with the
formula previously specified in Section 12.2(a)(2), modified as follows:
n = R(K1(c-C) + K2(f-F) + K3(m-M) + K4(d-D) +K5(f-F)c2) + K6(2500-a)
The symbols used in the above formula, as modified, shall have the meanings
previously specified, except that the symbols "K6" and "a" shall have the
following meanings:
K6 is a scaling factor of 0.0001.
a is as follows:
for units with more than 2500 annual hours available for operation, "a" =
2500,
for units with annual hours available for operation between 500 and 2500,
inclusive, "a" = annual hours available for operation, and
for units with annual hours available for operation less than 500 hours, "a" =
-7500;
provided, however, that a Participant may elect to avoid, in whole or part,
the effect on its Installed Capability Responsibility of a Restricted Unit's
availability being limited to 2500 hours or less a year by agreeing to leave
unfilled a portion of its dispatchable load allocation in accordance with
rules adopted by the Markets Committee prior to the activation of the
Participants Committee or the Participants Committee thereafter.
(b) The tentative Installed Capability Responsibilities of the Participants
for any month, as determined in accordance with Section 12.2(a), shall be
adjusted in accordance with this Section 12.2(b) in the event the value of H
for any Participant for any of the Twelve-Month Measurement Periods applicable
to the Participant for the month is increased in accordance with Section
12.2(a) because of the application of paragraph (ii) of the definition of H1.
In such event the System Operator under the direction of the Participants
Committee shall determine each Participant's tentative Installed Capability
Responsibility for the month with and without the application of said
paragraph (ii). The difference between the sum of all Participants' tentative
Installed Capability Responsibilities, with and without the application of
said paragraph (ii) for the month, shall be added to the tentative Installed
Capability Responsibilities of the Participants, as determined in accordance
with Section 12.2(a), in proportion to said tentative Installed Capability
Responsibilities, thereby establishing each Participant's adjusted tentative
Installed Capability Responsibility for the month.
(c) For each month, the System Operator under the direction of the
Participants Committee shall determine the sum of all Participants' adjusted
tentative Installed Capability Responsibilities, as initially determined in
accordance with Section 12.2(a) and as adjusted in accordance with Section
12.2(b), if Section 12.2(b) is applicable for such month. If the sum is less
than, or equal to, the minimum NEPOOL Installed Capability during the month,
then the adjusted tentative Installed Capability Responsibility as determined
pursuant to Section 12.2(a) or 12.2(b), whichever is applicable, for each
Participant is the final Installed Capability Responsibility for each
Participant. If the sum is greater than such minimum NEPOOL Installed
Capability, then each Participant's final Installed Capability Responsibility
shall be its adjusted tentative Installed Capability Responsibility as
determined pursuant to Section 12.2(a) or 12.2(b), whichever is applicable,
multiplied by the ratio of the minimum NEPOOL Installed Capability during the
month to the sum of the adjusted tentative Installed Capability
Responsibilities for the month.
(d) It is recognized that the treatment of fuel conversions, dual fuel units,
immature units, new Installed Capability Entitlements, cogeneration and small
power-producing facilities, Unit Contracts and other contract arrangements,
units with unusual maintenance cycles, and various other matters can result in
special problems in the determination of Unit Availability Adjustment Factors
and New Unit Adjustments. Accordingly, the Markets Committee shall analyze
such special problems and recommend to the Participants Committee for approval
appropriate market operation rules to be applied in taking such matters into
account in the determination of Unit Availability Adjustment Factors and New
Unit Adjustments.
12.3 [Deleted].
12.4 Bids to Furnish Installed Capability. Each Participant shall submit to
or have on file with the System Operator, in accordance with the market
operation rules approved by the Markets Committee prior to the activation of
the Participants Committee or the Participants Committee thereafter, one or
more bids specifying the Bid Price and Kilowatt amount at which it will
furnish any and all surplus Installed System Capability for a month through
NEPOOL to other Participants. If no bid is submitted for a month for any
surplus Installed System Capability, the Bid Price for any such surplus for
which there is no bid shall be deemed to be zero.
12.5 Consequences of Deficiencies in Installed Capability Responsibility.
(a) At the conclusion of each month, the System Operator shall determine
whether each Participant has satisfied its Installed Capability Responsibility
obligation for the month. If the minimum monthly Installed System Capability
of a Participant during the month was less than its Installed Capability
Responsibility, the number of Kilowatts of its deficiency shall be computed
and the Participant shall be deemed to purchase from other Participants
through NEPOOL Kilowatts of surplus Installed System Capability equal to the
amount of its deficiency and shall pay to NEPOOL for the month any applicable
fees for services assessed pursuant to Section 19.2 plus the product of its
total Kilowatts of deficiency and the Installed Capability Clearing Price for
the month determined in accordance with Section 12.5(b). For purposes of
this Section 12, the minimum monthly Installed System Capability of a
Participant for a month is the Participant's lowest Installed System
Capability for any hour during the month. Retirements made on the last day of
any month shall not be deducted from Installed System Capability for that
month.
(b) At the end of each month, the System Operator shall determine the
Installed Capability Clearing Price for the month as follows:
(i) The System Operator shall determine the aggregate Kilowatt shortage of
Installed System Capability for the month for all Participants that did not
satisfy their Installed Capability Responsibilities for that month.
(ii) The System Operator shall rank in the order of lowest to highest Bid
Price all Bid Prices received from Participants having excess Installed System
Capability for the month.
(iii) For each Participant, its Installed System Capability with the
lowest Bid Prices shall be deemed to have been furnished first, to the extent
required, to meet its Installed Capability Responsibility. Any remainder
starting with the lowest Bid Prices shall be deemed to have been furnished, to
the extent required, to other Participants under this Agreement to meet their
shortages of Installed System Capability for the month.
(iv) The Installed Capability Clearing Price for the month shall equal the
highest Bid Price for Installed System Capability that is deemed in accordance
with Section 12.5(b)(iii) to have been furnished to another Participant for
the month.
12.6 [Deleted].
12.7 Payments to Participants Furnishing Installed Capability.
(a) Participants that are deemed pursuant to Section 12.5 to furnish any
surplus in their Installed System Capability to other Participants shall
receive therefor their pro rata shares on a Kilowatt basis of all payments
made by Participants for the month under Section 12.5, excluding any
applicable fees for services assessed pursuant to Section 19.2. If two or
more Participants with excess Installed System Capability have bid Kilowatts
at the Installed Capability Clearing Price, but not all the excess Installed
System Capability bid at such price is required to meet shortages of Installed
System Capability, then the excess Installed System Capability bid at the
Installed Capability Clearing Price that each such Participant shall be deemed
to have furnished shall be the Kilowatts of excess Installed System Capability
bid by the Participant at that price multiplied by the ratio of (i) the total
Kilowatts of excess Installed System Capability bid at the Installed
Capability Clearing Price needed to meet the shortages to (ii) the total
Kilowatts of excess Installed System Capability bid by all Participants at the
Installed Capability Clearing Price.
(b) [Deleted].
SECT65535ON 13
OPERATION, GENERATION, OTHER RESOURCES, AND INTERRUPTIBLE CONTRACTS
13.1 Maintenance and Operation in Accordance with Good Utility Practice. Each
Participant shall, to the fullest extent practicable, cause all generating
facilities and other resources owned or controlled by it to be designed,
constructed, maintained and operated in accordance with Good Utility Practice.
13.2 Central Dispatch. Subject to the following sentence, each Participant
shall, to the fullest extent practicable, subject all generating facilities
and other resources owned or controlled by it to central dispatch by the
System Operator; provided, however, that each Participant shall at all times
be the sole judge as to whether or not and to what extent safety requires that
at any time any of such facilities will be operated at less than full capacity
or not at all. Each Participant may remove from central dispatch a generating
facility or other resources owned or controlled by it if and to the extent
such removal is permitted by rules and standards approved by the Participants
Committee.
13.3 Maintenance and Repair. Each Participant shall, to the fullest extent
practicable: (a) cause generating facilities and other resources owned or
controlled by it to be withdrawn from operation for maintenance and repair
only in accordance with maintenance schedules reported to and published by the
System Operator from time to time in accordance with procedures established or
approved by the Markets Committee prior to the activation of the Participants
Committee or the Participants Committee thereafter, (b) restore such
facilities to good operating condition with reasonable promptness, and (c)
accelerate or delay maintenance and repair at the reasonable request of the
System Operator in accordance with market operation rules approved by the
Markets Committee prior to the activation of the Participants Committee or the
Participants Committee thereafter.
13.4 Objectives of Day-to-Day System Operation. The day-to-day scheduling and
coordination through the System Operator of the operation of generating units
and other resources shall be designed to assure the reliability of the bulk
power system of the NEPOOL Control Area. Such activity shall:
(a) satisfy the NEPOOL Control Area's Operating Reserve requirements,
including the proper distribution of those Operating Reserves;
(b) satisfy the Automatic Generation Control requirements of the NEPOOL
Control Area; and
(c) satisfy the Energy requirements of all Electrical Loads of the
Participants,
all at the lowest practicable aggregate dispatch cost to the NEPOOL Control
Area in light of available Bid Prices and Participant-directed schedules.
13.5 Satellite Membership. Each Participant which is responsible for the
operation of transmission facilities rated 69 kV or above in the NEPOOL
Control Area or generating units and other resources which are subject to
central dispatch by NEPOOL, or which is responsible for implementing voltage
reduction and load shedding procedures in the NEPOOL Control Area, shall
become a member of the appropriate satellite dispatching center; provided that
by mutual agreement among the affected Participants and the appropriate
satellite, a Participant may be excused from joining the satellite if it has
arranged with a satellite member to assume responsibility to the satellite for
its facilities or obligations.
SECT65535ON 14
INTERCHANGE TRANSACTIONS
14.1 Obligation for Energy, Operating Reserve and Automatic Generation
Control.
(a) Each Participant shall have for each hour an Energy obligation equal to
its Electrical Load plus the kilowatthours delivered by such Participant to
other Participants in the hour pursuant to Firm Contracts or System Contracts,
together with any associated electrical losses.
(b) Each Participant shall have for each hour Operating Reserve obligations
equal to its share of the quantity of each category of Operating Reserve
required for the NEPOOL Control Area in the hour.
Subject to adjustment pursuant to Section 14.6, a Participant's share of each
category of Operating Reserve required for any hour shall be determined in
accordance with the following formula:
ORp=SAp + [(OR-SA) (ELp/EL)], wherein
ORp is the Participant's share of that category of Operating Reserve for the
hour.
SAp is the number of Kilowatts, if any, of that category of Operating Reserve
for the hour that the Participants Committee determines should be assigned
specifically to such Participant and not be shared by all Participants.
OR is the aggregate number of Kilowatts of that category of Operating
Reserve determined by the System Operator in accordance with the directions of
the Participants Committee to be required for the NEPOOL Control Area for the
hour that is not assigned to Non-Participants.
SA is the aggregate number of Kilowatts of that category of Operating
Reserve for the hour that the Participants Committee determines should not be
shared by all Participants, but not including Operating Reserve assigned to
Non-Participants.
ELp is the Participant's Electrical Load for the hour.
EL is the sum of ELp for all Participants.
(c) Each Participant shall have for each hour an AGC obligation equal to its
share of AGC required for the NEPOOL Control Area in the hour. Subject to
adjustment pursuant to Section 14.6, a Participant's share of AGC required for
any hour shall be determined in accordance with the following formula:
AGCp=AGC (ELp/EL), wherein
AGCp is the Participant's share of AGC for the hour.
AGC is the total amount of AGC determined by the System Operator in
accordance with market operation rules approved by the Markets Committee prior
to the activation of the Participants Committee or the Participants Committee
thereafter to be required for the NEPOOL Control Area for the hour that is not
assigned to Non- Participants.
ELp and EL are as defined in Section 14.1(b).
14.2 Obligation to Bid or Schedule, and Right to Receive Energy, Operating
Reserve and Automatic Generation Control.
(a) A Participant which has Energy Entitlements shall submit to or have on
file with the System Operator, in accordance with the market operation rules
approved by the Markets Committee prior to the activation of the Participants
Committee or the Participants Committee thereafter, one or more bids for the
Energy Entitlements for which the Participant is permitted to bid specifying
the Bid Price at which it will furnish Energy through NEPOOL to other
Participants under this Agreement or to Non-Participants for ancillary
services under the Tariff, or pursuant to arrangements with Non-Participants
entered into under Section 14.6, except to the extent such Entitlements are
scheduled by the Participant consistent with Section 14.2(d).
(b) A Participant which has Operating Reserve Entitlements or AGC
Entitlements shall also submit to or have on file with the System Operator, in
accordance with the market operation rules approved by the Markets Committee
prior to the activation of the Participants Committee or the Participants
Committee thereafter, one or more bids for each such Entitlement for which the
Participant is permitted to bid specifying the Bid Prices at which it will
furnish 10-Minute Spinning Reserve, 10-Minute Non-Spinning Reserve, 30-Minute
Operating Reserve and/or AGC through NEPOOL to other Participants under this
Agreement or to Non-Participants for ancillary services under the Tariff,
except to the extent such Entitlements are scheduled by the Participant
consistent with Section 14.2(d).
(c) Except as emergency circumstances may result in the System Operator
requiring load curtailments by Participants, each Participant shall be
entitled to receive from the other Participants (or from the service made
available from Non-Participants pursuant to arrangements entered into under
Section 14.6) such amounts, if any, of Energy, Operating Reserve, and AGC as
it requires and Non- Participants shall be entitled to receive from
Participants the amount of ancillary services to which they are entitled
pursuant to the Tariff. If, for any hour, load curtailments are required, the
amount that Participants and Non-Participants with shortages are entitled to
receive shall be proportionally reduced by the System Operator in a fair and
non-discriminatory manner in light of the circumstances.
(d) All Bid Prices for Entitlements shall be submitted in accordance with
market operation rules approved by the Markets Committee prior to the
activation of the Participants Committee or the Participants Committee
thereafter. If a Bid Price is not submitted for any such Entitlement, the Bid
Price shall be deemed to be zero. For a generating unit in which there are
multiple Entitlement holders, only one Participant shall be permitted to
submit Bid Prices for Energy, Operating Reserve and/or AGC Entitlements for
such unit or to direct the scheduling of the unit for any Scheduled Dispatch
Period. The Entitlement holders in each unit with multiple Entitlement
holders shall designate a single Participant that will be permitted to submit
Bid Prices and/or to direct the scheduling of the unit. In the event that
more than one Participant is designated, or if the Entitlement holders do not
designate a single Participant, then Bid Prices for the unit shall be based on
its replacement cost of fuel, which shall be furnished to the System Operator
by the Participant responsible for furnishing such information as of December
1, 1996. Further, any schedules for the unit will be submitted to the System
Operator by such Participant. Nothing in this Agreement shall affect the
rights of any Entitlement holder under the contractual arrangements among such
Entitlement holders relating to the unit.
Prior to the Third Effective Date, Bid Prices must be submitted for the next
Scheduled Dispatch Period for all Energy, Operating Reserve and AGC
Entitlements in generating unit or units and Energy Entitlements pursuant to
Firm Contracts or System Contracts which may be scheduled by the buyer in
accordance with Section 14.7(b) no later than noon on the preceding day or
such later time as is specified in the market operation rules approved by the
Markets Committee prior to the activation of the Participants Committee or
the Participants Committee thereafter. On and after the Third Effective Date,
such Bid Prices shall be submitted for each hour of the day and the notice
period for such Bid Prices shall be reduced to one hour or such shorter time
as the System Operator determines from time to time is practical while
maintaining reliability and meeting its other obligations to the Participants,
except that such notice period shall be longer than one hour if and to the
extent that the System Operator reasonably determines that such notice is the
shortest notice that is technically feasible at that time to maintain
reliability and meet its other obligations to the Participants. The System
Operator shall notify the Participants following its receipt of all Bid Prices
of the expected dispatch schedule for the next Scheduled Dispatch Period. The
System Operator shall reduce the notice required for Bid Prices and the
applicable Scheduled Dispatch Period to the minimum time technically and
practically feasible while maintaining reliability and meeting its other
obligations to the Participants. Energy, Operating Reserve and/or AGC
Entitlements in a generating unit or units may also be scheduled directly by
the Participants permitted to submit Bid Prices for such Entitlements, but
only in accordance with this Section 14.2(d) and market operation rules
approved by the Markets Committee prior to the activation of the Participants
Committee or the Participants Committee thereafter consistent herewith.
Subject to the right of the System Operator to direct changes to schedules in
order to ensure reliability in the NEPOOL Control Area or any neighboring
control area, a Participant permitted to bid its Energy, Operating Reserve,
and/or AGC Entitlements in a generating unit or units, or required to make
Energy deliveries, may submit an hour-to-hour schedule for the operation or
dispatch of such Entitlements during a Scheduled Dispatch Period at or before
the time that Bid Prices are required to be submitted for such period. In
addition, prior to the Third Effective Date, a Participant permitted to bid a
unit or units may submit a short-notice schedule for the operation or dispatch
of any or all of the Energy available from such unit or units during the
current or a subsequent Scheduled Dispatch Period following the time that the
System Operator notifies the appropriate Participants of their expected
Entitlement commitments for that Scheduled Dispatch Period; provided that, for
each such short-notice schedule, the Participant has not been advised by the
System Operator that the Energy, Operating Reserve or AGC Entitlements from
the unit or units covered by the Participant's schedule are expected to be
used during the Scheduled Dispatch Period to meet the region's Energy,
Operating Reserve and/or AGC requirements, and provided further that the
Participant short-notice schedule is only to facilitate transactions during
such period from resources or to load located outside the NEPOOL Control Area;
and provided further that such schedule is furnished at least one hour in
advance of the start of the transaction. In addition, a Participant may, on
the same short notice, schedule System Contracts with Non-Participants from
resources or to load located outside of the NEPOOL Control Area.
14.3 Amount of Energy, Operating Reserve and Automatic Generation Control
Received or Furnished.
(a) For purposes of Sections 14.4, 14.5, and 14.8, the amount of Energy which
a Participant is deemed to receive or furnish in any hour shall be the amount
of its Adjusted Net Interchange. If the Adjusted Net Interchange is negative,
the Participant shall be deemed to be receiving Energy in the hour. If the
Adjusted Net Interchange is positive, the Participant shall be deemed to be
furnishing Energy in the hour.
(b) For purposes of Sections 14.4, 14.5, and 14.9, prior to the Third
Effective Date: the amount of each category of Operating Reserve which a
Participant is deemed to receive in any hour is the Kilowatts of such
Operating Reserve assigned to the Participant for the hour under Section
14.1(b) less any Kilowatts provided in the hour by the Participant in
accordance with the market operation rules approved by the Markets Committee
prior to the activation of the Participants Committee or the Participants
Committee thereafter to meet any Operating Reserve requirements that were
specifically assigned to it and not shared by all Participants; the amount of
Operating Reserve of each category that the Participant is deemed to have
furnished under the Agreement in the hour is the amount of such Operating
Reserve designated by the System Operator to be provided in the hour by the
Participant's applicable Operating Reserve Entitlements, minus any Kilowatts
used in the hour by the Participant in accordance with the market operation
rules to meet any Operating Reserve requirements that were specifically
assigned to it and not shared by all Participants. For purposes of Sections
14.4, 14.5, and 14.9, on and after the Third Effective Date, the amount of
each category of Operating Reserve which a Participant is deemed to have
received or furnished in any hour is the difference between the Kilowatts of
such Operating Reserve assigned to the Participant for the hour under Section
14.1(b) and the Kilowatts of such Operating Reserve designated by the System
Operator to be provided in the hour by the Participant's applicable Operating
Reserve Entitlements.
(c) For purposes of Sections 14.4, 14.5, and 14.10, prior to the Third
Effective Date, the amount of AGC which a Participant is deemed to have
received in an hour is the AGC assigned to the Participant for the hour under
Section 14.1(c), and the amount a Participant is deemed to have furnished in
the hour is the AGC designated by the System Operator to be provided in the
hour by the Participant's AGC Entitlements. For purposes of Sections 14.4,
14.5, and 14.10, on and after the Third Effective Date, the amount of AGC
which a Participant is deemed to have received or furnished in an hour is the
difference between the AGC assigned to the Participant for the hour under
Section 14.1(c) and the AGC designated by the System Operator to be provided
in the hour by the Participant's AGC Entitlements.
14.4 Payments by Participants Receiving Energy Service, Operating Reserve and
Automatic Generation Control.
(a) For every hour in which a Participant's Adjusted Net Interchange is
negative, the number of megawatthours of its Energy deficiency shall be
computed and the Participant shall pay for the hour the product of its total
megawatthours of deficiency and the Energy Clearing Price applicable for the
hour as determined in accordance with Section 14.8, together with any
applicable uplift charges assessed to the Participant under Sections 14.14 and
14.15 of this Agreement and Section 24 of the Tariff and any applicable fees
for services assessed pursuant to Section 19.2.
(b) For every hour in which a Participant is deemed to receive Operating
Reserve of any category in accordance with Section 14.3(b), the number of
Kilowatts it is deemed to receive for the hour in each category shall be
computed. The Participant shall pay therefor for the hour any applicable
uplift charge assessed under Section 14.15 and any applicable fees for
services assessed pursuant to Section 19.2 plus the product of (i) the
aggregate amount paid to Participants for that category of Operating Reserve
for the hour pursuant to Section 14.5(b) and (ii) a fraction of which the
numerator is the Kilowatts of that category of Operating Reserve deemed under
Section 14.3(b) to have been received by the Participant for the hour and the
denominator is the aggregate Kilowatts of that category of Operating Reserve
deemed under Section 14.3(b) to have been received by all Participants for the
hour.
(c) For every hour in which a Participant is deemed under Section 14.3(c) to
have received AGC, the amount it is deemed to receive shall be computed and
the Participant shall pay therefor any applicable uplift charge assessed under
Section 14.15 and any applicable fees for services assessed pursuant to
Section 19.2 plus the product of (i) the aggregate amount paid to Participants
for AGC for the hour pursuant to Section 14.5(c) and (ii) a fraction of which
the numerator is the AGC the Participant is deemed under Section 14.3(c) to
have received for the hour and the denominator is the aggregate amount of AGC
all Participants are deemed under Section 14.3(c) to have received for the
hour.
14.5 Payments to Participants Furnishing Energy Service, Operating Reserve,
and Automatic Generation Control.
(a) Subject to the provisions of Section 14.12, a Participant that is deemed
in an hour to furnish Energy service to other Participants pursuant to Section
14.3, or to Non-Participants for ancillary services under the Tariff or
pursuant to arrangements entered into under Section 14.6, shall receive for
each megawatthour furnished by it the Energy Clearing Price for the hour
determined in accordance with Section 14.8 or the Bid Price for that
megawatthour, if higher than the Energy Clearing Price and the unit is either
within the Energy Clearing Price Block (as defined in Section 14.8(c)) or is
operated out of merit if such higher Bid Price is appropriately paid pursuant
to market operation rules governing out-of-merit generation approved by the
Markets Committee prior to the activation of the Participants Committee or the
Participants Committee thereafter. In addition, to the extent that the System
Operator reduces Energy production from a generating unit or units in order to
provide VAR support, Participants with Entitlements in such unit or units may
receive their lost opportunity costs if and to the extent provided for by
market operation rules approved by the Markets Committee prior to the
activation of the Participants Committee or the Participants Committee
thereafter.
(b) A Participant that is deemed in an hour to furnish Operating Reserve
under the Agreement shall receive for each Kilowatt of each category of
Operating Reserve furnished by it the applicable Operating Reserve Clearing
Price as defined and determined in accordance with Section 14.9 or the Bid
Price to provide such Kilowatt, if higher than the Operating Reserve Selling
Price for the hour.
(c) A Participant that is deemed in an hour to furnish AGC under the
Agreement shall receive therefor an amount calculated as follows:
(i) the AGC Clearing Price for the hour as defined and determined in
accordance with Section 14.10, times the change in AGC output of the
Participant's AGC Entitlements which the System Operator requested in the
hour, times an appropriate unit conversion factor as determined in accordance
with market operation rules approved by the Markets Committee prior to the
activation of the Participants Committee or the Participants Committee
thereafter; plus
(ii) an AGC reservation payment for each AGC Entitlement that the System
Operator designated for AGC in the hour calculated as (A) the AGC Clearing
Price in effect for the hour, times (B) the level of AGC the System Operator
determines to be available in the hour from the Entitlement, times (C) the
portion of the hour during which the System Operator had designated the
Entitlement for AGC; plus
(iii) a payment that compensates the Participant for its lost opportunity
cost, if any, for the operation of the generating unit or combination of units
designated for AGC in the hour below the desired level of output in order to
provide AGC, as determined in accordance with market operation rules approved
by the Markets Committee prior to the activation of the Participants Committee
or the Participants Committee thereafter.
14.6 Energy Transactions with Non-Participants.
(a) The Participants Committee is authorized to enter into contracts on
behalf of and in the names of all Participants (i) with power pools or other
entities in one or more other control areas to purchase or furnish emergency
Energy (and related services) that is available for the System Operator to
schedule in order to ensure reliability in the NEPOOL Control Area or
neighboring control areas, and (ii) with Non-Participants pursuant to which
ancillary services will be provided by the Participants pursuant to the
Tariff. The terms of any such contractual arrangement shall not require the
furnishing of emergency service to any other control area until the service
needs of all Participants have been provided for with the least expensive
resources practicable. Energy purchased in any hour from Non-Participants
under a contract entered into pursuant to this Section 14.6(a) shall be deemed
to be furnished to, and paid for by, Participants entitled to or requiring
such Energy in the hour pursuant to this Section 14 at the higher of the
Energy Clearing Price for the hour or the price paid to the Non-Participant
for the Energy.
(b) The Participants Committee is authorized to provide for the day-to- day
scheduling through the System Operator of the HQ Phase II Firm Energy
Contract, in accordance with the HQ Use Agreement, as if the Contract were a
contract covering Energy transactions with a Non- Participant entered into
pursuant to Section 14.6(a). The HQ Phase II Firm Energy Contract shall not
be deemed a Firm Contract for purposes of this Agreement. Energy received in
an hour from Hydro- Quebec pursuant to the HQ Energy Banking Agreement, and
Energy purchased in any hour from Hydro-Quebec pursuant to the HQ Phase II
Firm Energy Contract or any other HQ Contract shall be deemed to be Energy
furnished to each Participant entitled to such Energy for the hour in the
amount reflected for the Participant in the System Operator's scheduling of
Energy deliveries in the hour from Hydro- Quebec; except that emergency Energy
received from Hydro-Quebec under the HQ Interconnection Agreement shall be
deemed to be Energy provided to (and shall be paid for by) Participants
requiring such emergency Energy in the hour. The System Operator shall
schedule such Energy deliveries to accommodate, to the maximum extent
possible, the schedule of Energy deliveries from Hydro-Quebec requested by the
Participant. The Participants deemed to have received such Energy shall pay
therefor the higher of the Energy Clearing Price (together with any applicable
uplift charges under Sections 14.14 and/or 14.15 of this Agreement and/or
Section 24 of the Tariff and any applicable fees for services assessed
pursuant to Section 19.2) or the price paid to Hydro-Quebec for the Energy
(or in the case of Energy received under the HQ Energy Banking Agreement, the
price paid for the related Energy deliveries to Hydro-Quebec under the
Agreement and any amount payable to Hydro- Quebec with respect to the
transaction).
14.7 Participant Purchases Pursuant to Firm Contracts and System Contracts.
(a) For Firm Contracts and System Contracts, the treatment of Installed
Capability, Energy, Operating Reserve and AGC between the seller and the
purchaser in determining their respective responsibilities and Entitlements
shall be as agreed between the parties and reported to the System Operator in
accordance with market operation rules approved by the Markets Committee prior
to the activation of the Participants Committee or the Participants Committee
thereafter. If and to the extent necessary to implement the agreement between
the parties, such market operation rules, upon approval by the Participants
Committee, shall supersede the provisions of the Agreement that otherwise
apply for determination of the respective responsibilities and Entitlements of
the parties.
(b) In the event a Participant has the right to receive Energy, Operating
Reserve and/or AGC from a Non-Participant under a System Contract or a Firm
Contract, such Contract shall be treated as nearly as possible as if it were a
Unit Contract for an Energy Entitlement, Operating Reserve Entitlement and/or
AGC Entitlement, as applicable, provided that, in the case of Energy,
Operating Reserve, and/or AGC, the System Contract or Firm Contract permits
the scheduling of deliveries of such Energy, Operating Reserve and/or AGC to
be subject in whole or part to central dispatch through the System Operator in
accordance with market operation rules approved by the Markets Committee prior
to the activation of the Participants Committee or the Participants Committee
thereafter.
14.8 Determination of Energy Clearing Price. For each hour, the System
Operator shall determine the Energy Clearing Price as follows:
(a) The System Operator shall rank in the order of lowest to highest (i) the
Dispatch Prices derived from the Bid Prices to furnish Energy in the hour and
(ii) the cost to NEPOOL of any Energy received from Non-Participants in the
hour pursuant to contracts referenced in Section 14.6.
(b) The Energy Clearing Price shall be the weighted average of the Dispatch
Prices (or NEPOOL cost) of the "Energy Clearing Price Block" as defined in the
next sentence. The Energy Clearing Price Block shall be identified for each
hour in accordance with market operation rules approved by the Markets
Committee prior to the activation of the Participants Committee or the
Participants Committee thereafter to reflect those resources with the highest
Dispatch Prices or NEPOOL cost that were centrally dispatched by the System
Operator for Energy deemed to have been furnished to the Participants,
excluding resources that were dispatched out of merit as determined in
accordance with market operation rules approved by the Markets Committee prior
to the activation of the Participants Committee or the Participants Committee
thereafter.
14.9 Determination of Operating Reserve Clearing Price.
(a) For each hour as necessary, the System Operator shall determine the
Operating Reserve Clearing Price for each category of Operating Reserve as
follows:
(i) The System Operator shall determine the aggregate Kilowatts of the
applicable category of Operating Reserve that are deemed pursuant to Section
14.3(b) to have been received by Participants for the hour.
(ii) For 10-Minute Non-Spinning Reserve and 30-Minute Operating Reserve, the
System Operator shall rank in the order of lowest to highest the Bid Prices of
the resources designated by the System Operator for that category of Operating
Reserve for the hour. The applicable Operating Reserve Clearing Price for 10-
Minute Non-Spinning Reserve or 30-Minute Operating Reserve shall be the
weighted average of the highest Bid Prices for the ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ (or such
other number as may be specified by the Markets Committee prior to the
activation of the Participants Committee or the Participants Committee
thereafter) of that category of Operating Reserve that are designated by the
System Operator for use in the hour.
(iii) For 10-Minute Spinning Reserve the System Operator shall rank in
order of lowest to highest the 10-Minute Spinning Reserve Lost Opportunity
Prices (as defined in Section 14.9(b)) of the resources designated by the
System Operator for the hour. The Operating Reserve Clearing Price for 10-
Minute Spinning Reserve shall be the weighted average for the ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
(or such other number as may be specified by the Markets Committee prior to
the activation of the Participants Committee or the Participants Committee
thereafter) of the highest 10-Minute Spinning Reserve Lost Opportunity Prices
for the hour of the Entitlements that were designated by the System Operator
for use in the hour.
(b) The System Operator shall determine a 10-Minute Spinning Reserve Lost
Opportunity Price for each hour for use in determining the Operating Reserve
Clearing Price for 10-Minute Spinning Reserve. For the purposes of Section
14.9, the 10-Minute Spinning Reserve Lost Opportunity Price for a
Participant's resource shall be the amount by which the Energy Clearing Price
for the hour exceeds the resource's Dispatch price (not less than zero), plus
the Bid Price in the hour for each resource to provide 10-Minute Spinning
Reserve.
14.10 Determination of AGC Clearing Price. For each hour, the System
Operator shall determine the AGC Clearing Price. The AGC Clearing Price shall
be the weighted average "AGC Capability Price" for the "AGC Clearing Price
Block," as both terms are defined below in this Section 14.10. The AGC
Capability Price for each hour for each AGC Entitlement designated by the
System Operator to provide AGC in the hour shall be a cost per unit of AGC
capability based on the Bid Price for the Entitlement for the hour divided by
the amount of AGC available in the hour from that Entitlement. The AGC
Clearing Price Block shall be identified by the System Operator for each hour
in accordance with market operation rules approved by the Markets Committee
prior to the activation of the Participants Committee or the Participants
Committee thereafter to reflect those AGC resources with the highest Bid
Prices that were designated by the System Operator to provide AGC in the hour
and were deemed pursuant to Section 14.3(c) to have been received by
Participants for the hour.
14.11 Funds to or from which Payments are to be Made.
(a) All payments for Energy, Operating Reserves or AGC furnished or received,
all uplift charges paid pursuant to this Section 14 of this Agreement and
Section 24 of the Tariff, and all fees for services paid pursuant to Section
19.2, and any payments by Non- Participants for ancillary services under
Schedules 2-7 to the Tariff or pursuant to arrangements referenced in Section
14.6, shall be allocated each month through the Pool Interchange Fund as
follows:
Step One. For each week in which Energy is delivered or received under the HQ
Energy Banking Agreement, all payments with respect to transactions under that
Agreement shall be made to or from the Energy Banking Fund provided for in
Section 14.11(b).
Step Two. (i) For each week in which Pre-Scheduled Energy (as defined in the
HQ Phase I Energy Contract) is purchased pursuant to the HQ Phase I Energy
Contract, the aggregate amount which is paid pursuant to Section 14.6(b) for
such Energy by each Participant which is a participant in the Phase I
arrangements with Hydro- Quebec shall be determined and paid on the
Participant's account into the Phase I Savings Fund.
(ii) For each week in which Energy is purchased pursuant to the HQ Phase II
Firm Energy Contract, the aggregate amount which is paid pursuant to Section
14.6(b) for such Energy by each Participant which is a participant in the
Phase II arrangements with Hydro- Quebec shall be determined and paid on the
Participant's account into the Phase II Savings Fund.
Step Three. For each week in which Other HQ Energy is purchased pursuant to
the HQ Phase I Energy Contract or Energy is purchased pursuant to the HQ
Interconnection Agreement, the aggregate amount paid pursuant to Section
14.6(b) for such Energy shall be determined for each Participant which is a
participant in the Phase I or Phase II arrangements with Hydro-Quebec. Such
amount shall be allocated between the Participant's share of the Phase I
Savings Fund and the Participant's share of the Phase II Savings Fund created
under the HQ Use Agreement in the same ratio as (A) the sum of (x) the number
of kilowatthours of Other HQ Energy deemed to be purchased by the Participant
during the week and (y) the HQ Phase I Percentage of the number of
kilowatthours deemed to be purchased by the Participant under the HQ
Interconnection Agreement during the week, bears to (B) the HQ Phase II
Percentage of the number of kilowatthours purchased under the HQ
Interconnection Agreement during the week.
Step Four. The balance remaining in the Pool Interchange Fund after Steps One
through Three shall be retained in the Pool Interchange Fund for the month and
shall be used and disbursed after each month in the following order:
(i) (A) amounts owed to Non-Participants (other than Hydro-Quebec) for the
month under contracts entered into with them pursuant to Section 14.6(a) shall
be paid, and (B) amounts owed to Hydro-Quebec for the month for Energy deemed
to be furnished pursuant to Section 14.6(b) to Participants which are not
participants in the Phase I or Phase II arrangements with Hydro-Quebec shall
be paid and, in the event the price paid by any such Participant for such
Energy is the Energy Clearing Price, the excess, if any, of the Energy
Clearing Price over the amount owed to Hydro-Quebec shall be paid to the
Participant;
(ii) amounts paid by Participants for applicable fees for services assessed
pursuant to Section 19.2 shall be used to reduce NEPOOL expenses; and
(iii) amounts owed to Participants for the month pursuant to Section 14.5
shall then be paid.
(b) HQ Energy Banking Fund. All amounts allocated to the HQ Energy Banking
Fund for each month shall be used and disbursed as follows:
(i) Participants which furnish Energy for delivery to Hydro-Quebec under the
HQ Energy Banking Agreement shall receive therefor from their share of the
Energy Banking Fund the amount to which they are entitled for such service in
accordance with Section 14.5.
(ii) amounts required to be paid to Hydro-Quebec under the HQ Energy Banking
Agreement shall be paid from the shares of the Fund of the Participants
engaging in transactions under the HQ Energy Banking Agreement for the month
in accordance with their respective interests in the transactions for the
month. If there is not enough in any such share, the Participants with the
deficient shares shall be billed and pay into their shares of the Fund the
amounts required for payments to Hydro- Quebec.
(iii) subject to the remaining provisions of this Section, at the end of
each month any balance remaining in each Participant's share of the HQ Energy
Banking Fund shall (I) in the case of any Participant which is not a
participant in the Phase I or Phase II arrangements with Hydro-Quebec, be paid
to such Participant, and (II) in the case of any Participant which is a
participant in the Phase I or Phase II arrangements with Hydro-Quebec, be paid
to the Escrow Agent under the HQ Use Agreement to be held and disbursed by it
through the Phase I Savings Fund and Phase II Savings Fund created under the
HQ Use Agreement, and shall be allocated between the Participant's share of
said Funds as follows:
(A) the balance remaining in the Participant's share of the HQ Energy Banking
Fund for the month shall be divided by the number of kilowatthours deemed to
be received by the Participant under the HQ Energy Banking Agreement during
the month to determine an average savings amount per kilowatthour;
(B) for any hour during the month in which the number of kilowatthours
received by NEPOOL under the HQ Energy Banking Agreement exceeded the HQ Phase
I Transfer Capability, an amount equal to (A) the Participant's share of the
excess of (1) the number of kilowatthours received over (2) the HQ Phase I
Transfer Capability times (B) the average savings amount per kilowatthour
determined for that Participant under (i) above shall be allocated to the
Phase II Savings Fund; and
(C) the remaining balance of the Participant's share of the HQ Energy Banking
Fund for the month shall be allocated to the Phase I Savings Fund.
It is recognized that, in view of the time which may elapse between the
delivery of Energy to or by Hydro-Quebec in an Energy Banking transaction
under the HQ Energy Banking Agreement and the return of the Energy, the
amounts of Energy delivered to and received from Hydro-Quebec, after
adjustment for losses, may not be in balance at the end of a particular
month.
Further, if as of the end of any month and after adjustment for electrical
losses, the cumulative amount of Energy so received from Hydro-Quebec exceeds
the amount so delivered, the aggregate amount paid by Participants for the
excess Energy pursuant to Section 14.6(b) shall be paid to the Energy Banking
Fund. The Escrow Agent under the HQ Use Agreement shall hold and invest these
funds. On the return of the excess Energy to Hydro-Quebec, the amount so held
by the Escrow Agent shall be repaid to Hydro-Quebec and Participants in
accordance with the Energy Banking Agreement.
(c) Phase I HQ Savings Fund. The aggregate amount allocated to each
Participant's share of the Phase I HQ Savings Fund for each month shall be
used, first, to pay to Hydro-Quebec the amount owed to it for the month for
Energy furnished under the Phase I HQ Energy Contract and the HQ Phase I
Percentage of the amount owed to it for the month for Energy furnished to the
Participants under the HQ Interconnection Agreement. The balance of the
amount allocated to the Fund for the month shall be paid to the Escrow Agent
under the HQ Use Agreement to be held and disbursed by it through the Phase I
HQ Savings Fund created thereunder in accordance with each Participant's
contribution to such balance.
(d) Phase II HQ Savings Fund. The aggregate amount allocated to the Phase II
HQ Savings Fund for each month shall be used, first, to pay to Hydro-Quebec
the amount owed to it for the month for Energy deemed to be furnished to the
Participant under the Phase II HQ Firm Energy Contract and the HQ Phase II
Percentage of the amount owed to it for the month for Energy deemed to be
furnished to the Participant under the HQ Interconnection Agreement. The
balance of the amount allocated to the Fund for the month shall be paid to the
Escrow Agent under the HQ Use Agreement to be held and disbursed by it through
the Phase II HQ Savings Fund created thereunder in accordance with each
Participant's contribution to such balance.
14.12 Development of Rules Relating to Nuclear and Hydroelectric
Generating Facilities, Limited-Fuel Generating Facilities, and Interruptible
Loads. It is recognized that the central dispatch of Energy available from
nuclear generating facilities and from pondage associated with hydroelectric
generating facilities and from interruptible loads and of pumping Energy for
pumped storage hydroelectric generating facilities and other limited-fuel
generating facilities involves special problems which must be resolved to
assure fair and non-discriminatory treatment of Participants having
Entitlements in such generating facilities or having such interruptible loads
or any other Participants involved in such transactions. Accordingly, the
Markets Committee shall analyze such special problems and recommend to the
Participants Committee for approval appropriate rules for dispatching such
facilities (including, but not limited to, bids for dispatchable pumping load
at pumped storage facilities), for handling such interruptible loads and for
paying for Energy, Operating Reserve and AGC involved in such transactions on
a basis consistent with the principles underlying this Section 14; and upon
approval by the Participants Committee such rules shall supersede the
provisions of Sections 12 and 14 to the extent of any conflict.
14.13 Dispatch and Billing Rules During Energy Shortages. It is
recognized that Energy shortages can result in special problems which must be
resolved to assure that dispatch and billing provisions do not prevent
achievement of the objectives specified in Section 13.4. Accordingly, the
Markets Committee shall analyze such special problems and recommend to the
Participants Committee for approval appropriate dispatch and billing rules to
be applied during periods when the Participants Committee determines that
there is, or is anticipated to be, an Energy shortage which adversely affects
the bulk power supply of the NEPOOL Control Area and any adjoining areas
served by Participants. Upon approval by the Participants Committee, such
rules shall supersede the economic dispatch and billing provisions of this
Agreement to the extent of any conflict therewith for the duration of such
Energy shortage period.
14.14 Congestion Uplift.
(a) It shall be the responsibility of the Participants Committee to review
prior to January 1, 2000 the Congestion Costs incurred with the new market
arrangements contemplated by Section 14 of this Agreement and with retail
access, and to determine whether subsection (b) of this Section, together with
an amendment specifying the rights of Participants and Non-Participants across
a constrained interface within the NEPOOL Control Area and to make other
necessary or appropriate changes in subsection (b), all of the provisions of
which shall be considered for modification, or some other modified or
substitute provision dealing with the allocation of Congestion Costs in a
constrained transmission area, should be made effective on March 1, 2000 and
after the preparation of necessary implementing rules and computer software or
on an earlier or later effective date. If the Participants Committee
determines that such a provision should be made effective, it shall recommend
to the Participants any required amendment to the Agreement and/or the Tariff
and a schedule for implementation which will permit sufficient time for the
development of necessary rules and computer software. If the Participants
Committee is unable to agree on such a determination prior to January 1, 2000
any Participant or group of Participants may propose such an amendment and
schedule in a filing with the Commission.
(b) Commencing on the earlier of June 1, 2000 or the beginning of the first
calendar month sixty (60) days after the filing of an amendment to the
Agreement and/or the Tariff by the Participants Committee, any Participant or
group of Participants, but subject to the adoption of an amendment specifying
the rights of Participants and Non-Participants across constrained interfaces
within the NEPOOL Control Area and making other necessary or appropriate
changes in the language of this subsection (b), and the preparation of
necessary implementing rules and computer software, (or on such earlier or
later date as is fixed by the Participants Committee in accordance with
subsection (a) of this Section), whenever limitations in available
transmission capacity in any hour require that the System Operator dispatch
out-of-merit resources that are bid by the Participants in any area which is
determined to be a constrained transmission area in accordance with market
operation rules approved by the Regional Market Operations Committee and the
Regional Transmission Operations Committee prior to the activation of the
Participants Committee or the Participants Committee thereafter, the System
Operator shall determine for the constrained transmission area the aggregate
Congestion Costs for the hour.
Such Congestion Costs for each hour shall be allocated to and paid by
Participants and Non-Participants as a congestion uplift as follows:
(i) In accordance with market operation rules approved by the Regional Market
Operations Committee and the Regional Transmission Operations Committee prior
to the activation of the Participants Committee or the Participants Committee
thereafter, the System Operator shall identify for each Participant and
Non-Participant the difference in megawatt hours, if any, between (A)
Electrical Load served by the Participant or Non-Participant in the
constrained area and transactions by the Participant or Non-Participant
occurring in the hour which utilized the constrained interface to move Energy
through the constrained area and (B) the Participant's or Non-Participant's
in-merit Energy Entitlements located in the constrained area that were used in
the hour to serve such Electrical Load, taking into account Firm Contracts and
System Contracts between Participants and electrical losses, if and as
appropriate.
(ii) The System Operator shall identify for each Participant and
Non-Participant the megawatt hours, if any, of the rights of that Participant
or Non-Participant to use the then effective transfer capability across the
constrained interface.
(iii) The System Operator shall identify for each Participant and
Non-Participant the megawatt hours, if any, by which the amount determined
pursuant to clause (i) above for that Participant or Non-Participant exceeds
the amount determined for that Participant or Non-Participant pursuant to
clause (ii) above. If the clause (i) amount exceeds the clause (ii) amount,
the Participant or Non-Participant shall be responsible for paying a share of
the aggregate Congestion Costs in proportion to the Participant's or
Non-Participant's share of the aggregate amount of such excesses for all
Participants and Non-Participants, and such Congestion Costs shall be
included, as a transmission charge, in the Regional Network Service, Internal
Point-to-Point Service or Through or Out Service charge, whichever is
applicable.
(c) As used in this Section 14.14, the "Congestion Cost" of an out-of- merit
resource for an hour means the product of (i) the difference between its
Dispatch Price and the Energy Clearing Price for the hour, times (ii) the
number of megawatt hours of out-of-merit generation produced by the resource
for the hour.
14.15 Additional Uplift Charges. It is recognized that the System
Operator may be required from time to time to dispatch resources out of merit
for reasons other than those covered by Section 14.14 of this Agreement and
Section 24 of the Tariff. Accordingly, if and to the extent appropriate,
feasible and practical, dispatch and operational costs shall be categorized
and allocated as uplift costs to those Participants and Non-Participants that
are responsible for such costs. Such allocations shall be determined in
accordance with market operation rules that are consistent with this Agreement
and any applicable regulatory requirements and approved by the Regional Market
Operations Committee prior to the activation of the Participants Committee or
the Participants Committee thereafter.
PART FOUR
TRANSMISSION PROVISIONS
SECT65535ON 15
OPERATION OF TRANSMISSION FACILITIES
15.1 Definition of PTF. PTF or pool transmission facilities are the
transmission facilities owned by Participants rated 69 kV or above required to
allow energy from significant power sources to move freely on the New England
transmission network, and include:
1. All transmission lines and associated facilities owned by Participants
rated 69 kV and above, except for lines and associated facilities that
contribute little or no parallel capability to the NEPOOL Transmission System
(as defined in the Tariff). The following do not constitute PTF:
(a) Those lines and associated facilities which are required to serve local
load only.
(b) Generator leads, which are defined as radial transmission from a
generation bus to the nearest point on the NEPOOL Transmission System.
(c) Lines that are normally operated open.
2. Parallel linkages in network stations owned by Participants (including
substation facilities such as transformers, circuit breakers and associated
equipment) interconnecting the lines which constitute PTF.
3. If a Participant with significant generation in its transmission and
distribution system (initially 25 MW) is connected to the New England network
and none of the transmission facilities owned by the Participant qualify to be
included in PTF as defined in (1) and (2) above, then such Participant's
connection to PTF will constitute PTF if both of the following requirements
are met for this connection:
(a) The connection is rated 69 kV or above.
(b) The connection is the principal transmission link between the Participant
and the remainder of the New England PTF network.
4. Rights of way and land owned by Participants required for the
installation of facilities which constitute PTF under (1), (2) or (3) above.
The Reliability Committee shall review at least annually the status of
transmission lines and related facilities and determine whether such
facilities constitute PTF and shall prepare and keep current a schedule or
catalogue of PTF facilities.
The following examples indicate the intent of the above definitions:
(i) Radial tap lines to local load are excluded.
(ii) Lines which loop, from two geographically separate points on the NEPOOL
Transmission System, the supply to a load bus from the NEPOOL Transmission
System are included.
(iii) Lines which loop, from two geographically separate points on the
NEPOOL Transmission System, the connections between a generator bus and the
NEPOOL Transmission System are included.
(iv) Radial connections or connections from a generating station to a single
substation or switching station on the NEPOOL Transmission System are
excluded, unless the requirements of paragraph (3) above are met.
Transmission facilities owned by a Related Person of a Participant which are
rated 69 kV or above and are required to allow Energy from significant power
sources to move freely on the New England transmission network shall also
constitute PTF provided (i) such Related Person files with the Secretary of
the Participants Committee its consent to such treatment; and (ii) the
Participants Committee determines that treatment of the facility as PTF will
facilitate accomplishment of NEPOOL's objectives. If a facility constitutes
PTF pursuant to this paragraph, it shall be treated as "owned" by a
Participant for purposes of the Tariff and the other provisions of Part Four
of the Agreement.
15.2 Maintenance and Operation in Accordance with Good Utility Practice. Each
Participant which owns or operates PTF or other transmission facilities rated
69 kV or above shall, to the fullest extent practicable, cause all such
transmission facilities owned or operated by it to be designed, constructed,
maintained and operated in accordance with Good Utility Practice.
15.3 Central Dispatch. Each Participant which owns or operates PTF or other
transmission facilities rated 69 kV or above shall, to the fullest extent
practicable, subject all such transmission facilities owned or operated by it
to central dispatch by the System Operator; provided, however, that each
Participant shall at all times be the sole judge as to whether or not and to
what extent safety requires that at any time any of such facilities will be
operated at less than their full capability or not at all.
15.4 Maintenance and Repair. Each Participant shall, to the fullest extent
practicable: (a) cause transmission facilities owned or operated by it to be
withdrawn from operation for maintenance and repair only in accordance with
maintenance schedules reported to and published by the System Operator in
accordance with procedures approved or established by the Tariff Committee
from time to time, (b) restore such facilities to good operating condition
with reasonable promptness, and (c) in emergency situations, accelerate
maintenance and repair at the reasonable request of the System Operator in
accordance with rules approved by the Tariff Committee.
15.5 Additions to or Upgrades of PTF. The possible need for an addition to or
upgrade of PTF may be identified in connection with an application or request
for service under the Tariff, or in connection with a request for the
installation of or material change to a generation or transmission facility,
or may be separately identified by a NEPOOL committee, a Participant or the
System Operator. In such cases, a study, if necessary, to assess available
transmission capacity and, if necessary, a System Impact Study and a Facility
Study shall be performed by the affected Participant(s) in whose Local
Network(s) the addition or upgrade would or might be effected or their
designee(s), or the Reliability Committee and/or the System Operator, in the
case of a System Impact Study, or the Committee's or the System Operator's
designee(s) with review of the study by the System Operator if it does not
perform the study. Studies to assess available transmission capacity and
System Impact Studies and Facilities Studies shall be conducted, as
appropriate, in accordance with the affected Participant's Local Network
Service Tariff, or in accordance with the applicable methodology specified in
Attachments C and D to the Tariff, and the provisions of the Local Network
Service Tariff or the applicable provisions of Attachments I and J to the
Tariff shall apply, as appropriate, with respect to the payment of the costs
of the study and the other matters covered thereby.
If any of the studies referred to above indicates that new PTF facilities or a
facility modification or other PTF upgrades are necessary to provide the
requested service, or in connection with a new or modified generation or
transmission facility, or otherwise in order to ensure adequate, economic and
reliable operation of the bulk power supply systems of the Participants for
regional purposes, whether or not a particular customer is benefited, upon
approval of the studies by the Reliability Committee, subject to review by the
System Operator, one or more Transmission Providers shall be designated by the
Reliability Committee, subject to review by the System Operator, to design and
effect the construction or modification.
Upon the designation of a Transmission Provider to design and effect a PTF
addition or upgrade and the fixing of the cost responsibilities of the
Participants and Non-Participants and agreement as to the security and other
provisions of said arrangement, the Transmission Provider designated to
perform the construction shall, in accordance with the terms of such
arrangement and subject to Sections 18.4 and 18.5, use its best efforts to
obtain any necessary public approvals or permits, to acquire any required
rights of way or other property, and to effect the proposed construction or
modification.
Responsibility for the costs of new PTF or any modification or other upgrade
of PTF shall be determined, to the extent applicable, in accordance with Parts
V and VI and Schedule 11 of the Tariff, including without limitation the
provisions relating to responsibility for the costs of new PTF or
modifications or other upgrades to PTF exceeding regional system, regulatory
or other public requirements set forth in paragraph (ii) of Schedule 11 to the
Tariff.
SECT65535ON 16
SERVICE UNDER TARIFF
16.1 Effect of Tariff. The Tariff specifies the terms and conditions under
which the Participants will provide regional transmission service through
NEPOOL. This Section 16 specifies various rights and obligations with respect
to the revenues to be collected by NEPOOL for the Participants under the
Tariff and related matters.
16.2 Obligation to Provide Regional Service. The Participants which own PTF
shall collectively provide through NEPOOL regional transmission service over
their PTF facilities, and the facilities of their Related Persons which
constitute PTF in accordance with Section 15.1, to other Participants and
other Eligible Customers pursuant to the Tariff. The Tariff provides open
access for all of the types of regional transmission service required by
Participants and other Eligible Customers over PTF and it is intended to be
the only source of such service, except for service provided for Excepted
Transactions.
16.3 Obligation to Provide Local Network Service. Each Participant which owns
transmission facilities other than PTF shall provide service over such
facilities to other Participants or other Eligible Customers connected to the
Transmission Provider's transmission system pursuant to a tariff (a "Local
Network Service Tariff") filed by the Transmission Provider with the
Commission. A Participant is also obligated to provide service under its
Local Network Service Tariff or otherwise (i) to permit a Participant or other
Entity with an Entitlement in a generating unit in the Participant's local
network to deliver the output of the generating unit to an interconnection
point on PTF and (ii) to permit the delivery to an Eligible Customer taking
Internal Point-to- Point Service under the Tariff of the Energy and/or capacity
covered by its Completed Application for that Internal Point-to-Point Service.
A Local Network Service Tariff shall provide:
(i) for a pro rata allocation of monthly revenue requirements not otherwise
paid for through charges to Eligible Customers for Local Point-to-Point
Service among the Transmission Provider's Network Customers receiving service
under the tariff on the basis of their loads during the hour in the month in
which the total connected load to the Local Network is at its maximum, without
any adjustment for credits for generation;
(ii) for the recovery under the Local Network Service Tariff from Eligible
Customers taking Regional Network Service and Internal Point-to-Point Service
of that portion of the Transmission Provider's annual transmission revenue
requirements with respect to PTF which is not recovered through the
distribution of revenues from Regional Network Service or Internal
Point-to-Point Service pursuant to Section 16.6;
(iii) that where all or a part of the load of a Participant or other
Eligible Customers taking service under the tariff is connected directly to
PTF, the Participant or other Eligible Customers receiving the service shall
pay each Year during the Transition Period for such service with respect to
the load directly connected to PTF the percentage specified in the schedule
below of the applicable Local Network Service Tariff charge for service across
non-PTF transmission facilities and shall have no obligation to pay charges
for service across non-PTF transmission facilities with respect to that
portion of the connected load after the Transition Period, but shall continue
to pay its share of any other Local Network Service costs directly associated
with the PTF-connected load; provided that in the event of any inconsistency
between the foregoing provisions and the terms of any Excepted Transaction
which is listed in Attachment G-1 to the Tariff, the Excepted Transaction
shall control:
Year One
% of charge to be paid 100%
Year Two
% of charge to be paid 80%
Year Three
% of charge to be paid 60%
Year Four
% of charge to be paid 40%
Years Five and Six
% of charge to be paid 20%
(iv) that if the Transmission Provider receives a distribution pursuant
to Section 16.6 from NEPOOL out of revenues paid for Through or Out Service or
for In Service (as defined in the Tariff), the amounts received shall reduce
its Local Network Service revenue requirements; and
(v) that if the Transmission Provider receives transmission revenues
from an Eligible Customer taking Local Network Service from that Transmission
Provider with respect to an Excepted Transaction, the amounts received shall
reduce the amount due from such Eligible Customer connected to the
Transmission Provider's transmission system for Local Network Service provided
thereto by the Transmission Provider rather than reducing the Transmission
Provider's total cost of service, except that any reductions to the amount due
from Eligible Customers for Excepted Transactions identified in Section 25(1)
and (2) of the Tariff shall be made only for service rendered through February
28, 1999, and such reductions shall cease and shall be replaced thereafter in
their entirety with the credits under the NEPOOL Tariff, provided in
accordance with Sections 25A and 25B of the Tariff.
16.4 Transmission Service Availability. The availability of transmission
capacity to provide transmission service under the Tariff shall be determined
in accordance with the Tariff. In determining the availability of
transmission capacity, existing committed uses of the Participants'
transmission facilities shall include uses for existing firm loads and
reasonably forecasted changes in such loads, and for Excepted Transactions.
16.5 Transmission Information. Information concerning (i) available
transmission capacity, (ii) transmission rates and (iii) system conditions
that may give rise to Interruptions or Curtailments shall be made available to
all Participants and Non-Participants through the OASIS on a timely and
non-discriminatory basis. All Participants owning PTF or other transmission
facilities rated 69 kV or higher shall make available to the System Operator
the information required to permit the maintenance of the OASIS in compliance
with Commission Order 889 and any other applicable Commission orders; provided
that no Participant shall be required to furnish information which is required
to be treated as confidential in accordance with NEPOOL policy without
appropriate arrangements to protect the confidentiality of such information.
16.6 Distribution of Transmission Revenues. Payments required by the Tariff
for the use of the NEPOOL Transmission System shall be made to NEPOOL and
shall be distributed by it in accordance with this Section 16.6.
A. Regional Network Service Revenues. Revenues received by NEPOOL for
providing Regional Network Service each month during the Transition Period
shall be distributed to those Participants owning PTF or those load-serving
Participants supporting PTF which are obligated to take and pay for Regional
Network Service and/or Internal Point- to-Point Service in accordance with the
Tariff, in part on the basis of allocated flows for the region as determined
in accordance with the methodology specified in Attachment A to this Agreement
and in part in proportion to the respective Annual Transmission Revenue
Requirements for PTF of such owners and supporters, in accordance with the
following Schedule:
Year One
Allocated Flows:
25%
Annual Transmission Revenue Requirements:
75%
Year Two
Allocated Flows:
20%
Annual Transmission Revenue Requirements:
80%
Year Three
Allocated Flows:
15%
Annual Transmission Revenue Requirements:
85%
Year Four
Allocated Flows:
10%
Annual Transmission Revenue Requirements:
90%
Year Five
Allocated Flows:
5%
Annual Transmission Revenue Requirements:
95%
Year Six
Allocated Flows:
2.5%
Annual Transmission Revenue Requirements:
97.5%
Revenues received by NEPOOL for providing Regional Network Service each month
after the Transition Period shall be distributed to the Participants owning or
supporting PTF in proportion to their respective Annual Transmission Revenue
Requirements for PTF.
B. Through or Out Service Revenues. The revenues received by NEPOOL each
month for providing Through or Out Service shall be distributed among the
Participants owning PTF on the basis of allocated flows for the transaction
determined in accordance with the methodology specified in Attachment A to
this Agreement; provided that for service provided during the Transition
Period but not thereafter, for an "Out" transaction which originates on the
system of a Participant which owns the PTF interconnection facilities on the
New England side of the interface with the other Control Area over which the
transaction is delivered, 100% of the megawatt mile flows with respect to the
transaction shall be deemed to occur on such Participant's system.
C. Internal Point-to-Point Service Revenues. The revenues received by
NEPOOL each month for providing Internal Point-to-Point Service shall be
distributed among those load-serving Participants owning or supporting PTF
which are obligated to take and pay for Regional Network Service and/or
Internal Point-to-Point Service in accordance with the Tariff, in proportion
to their respective Annual Transmission Revenue Requirements for PTF under
Attachment F to the Tariff.
D. Ancillary Service Payments. The revenues received by NEPOOL pursuant to
Schedule 1 to the Tariff (scheduling, system control and dispatch service)
will be used to reimburse NEPOOL, the System Operator (if the System Operator
does not receive revenues for that service under a separate tariff) and
Participants for the costs which are reflected in the charges for such
service. The revenues received by NEPOOL pursuant to Schedules 2-7 to the
Tariff shall be distributed prior to the Second Effective Date in accordance
with the continuing provisions of the Prior NEPOOL Agreement and the rules
adopted thereunder, and shall be distributed on or after the Second Effective
Date in accordance with Section 14.
E. Congestion Payments. Any congestion uplift charge received as a payment
for transmission service pursuant to Section 24 of the Tariff for any hour
shall be applied in accordance with Section 14.5(a) in payment for Energy
service.
SECT65535ON 17
POOL-PLANNED UNIT SERVICE
17.1 Effective Period. The provisions contained in this Section 17 shall
continue in effect for the period to and including February 28, 2001, and
shall be of no effect after that date.
17.2 Obligation to Provide Service. Until February 28, 2001, each Participant
shall provide service over its PTF facilities under this Section 17 rather
than under the Tariff, for the following purposes:
(a) the transfer to a Participant's system of its ownership interest or its
Unit Contract Entitlement under a contract entered into by it before November
1, 1996 in a Pool-Planned Unit which is off its system;
(b) the transfer to a Participant's system of its Entitlement in a purchase
under a contract entered into by it before November 1, 1996 (including a
purchase under the HQ Phase II Firm Energy Contract) from Hydro-Quebec where
the line over which the transfer is made into New England is the HQ
Interconnection; and
(c) the transfer to a Non-Participant of its Entitlement in a Pool- Planned
Unit pursuant to an arrangement which has been approved prior to November 1,
1996 by the Participants Committee.
17.3 Rules for Determination of Facilities Covered by Particular Transactions.
It is anticipated that it may be necessary with respect to a particular
transmission use under subsection (a), (b) or (c) of Section 17.2 to determine
whether the transaction is effected entirely over PTF, entirely over
facilities that are not PTF, or partially over each.
The following rules shall be controlling in the determination of the
facilities required to effect the use:
(a) To the extent that EHV PTF is available to effect the transaction, over
all or part of the distance to be covered, the use shall be deemed to be
effected on such EHV PTF over such portion of the distance to be covered.
(b) To the extent that EHV PTF is not available for the entire distance to be
covered by the use, but Lower Voltage PTF is available to cover all or part of
the distance not covered by EHV PTF, the transaction shall be deemed to be
effected on such Lower Voltage PTF. If a Participant has ownership or
contractual rights with respect to an Excepted Transaction which are
independent of this Agreement and the Tariff and are adequate to provide for a
transfer of the types specified in subsections 17.2(a), (b) or (c), and such
rights are not limited to the transfer in question, the transfer shall be
deemed to have been effected pursuant to such rights and not pursuant to the
provisions of this Agreement. A copy of each instrument establishing such
rights, or an opinion of counsel describing and authenticating such rights,
shall be filed with the Secretary of the Participants Committee.
17.4 Payments for Uses of EHV PTF During the Transition Period.
(a) Each Participant shall pay each month for its uses of EHV PTF for
transfers of Entitlements pursuant to subsections (a) or (b) of Section 17.2,
one-twelfth of the NEPOOL EHV PTF Participant Summer or Winter Wheeling Rate
in effect for the calendar year ending December 31, 1996, as determined in
accordance with the Prior NEPOOL Agreement, for each Kilowatt of its current
Entitlements which qualify for transfer pursuant to subsections (a) or (b) of
Section 17.2, except as otherwise provided in Section 17.3; provided that such
payment shall be required with respect to only one-half the Kilowatts covered
by a NEPOOL Exchange Arrangement (as hereinafter defined).
Each Participant which is a party to the HQ Phase II Firm Energy Contract
(other than a Participant (i) whose system is directly interconnected to the
HQ Interconnection or (ii) which has contractual rights independent of this
Agreement and the Tariff which give it direct access to the HQ Interconnection
and which are not limited to transfers of Energy delivered over the HQ
Interconnection) shall also pay each month for the use of EHV PTF for
deliveries under the Phase II Firm Energy Contract during the Base Term of the
HQ Phase II Firm Energy Contract, one-twelfth of the NEPOOL EHV PTF
Participant Summer or Winter Wheeling Rate in effect for the calendar year
ending December 31, 1996, as determined in accordance with the Prior NEPOOL
Agreement, for each Kilowatt of its HQ Phase II Net Transfer Responsibility
for the month. If, and to the extent that, such Responsibility continues for
any period by which the term of said Contract extends beyond the Base Term,
each such Participant shall continue to pay the above rate during the
extension period with respect to its continuing Responsibility. A Participant
shall not be deemed to be directly interconnected to the HQ Interconnection
for purposes of this paragraph solely because of its participation in
arrangements for the support and/or use of PTF facilities installed or
modified to effect reinforcements of the New England AC transmission system
required in connection with the HQ Interconnection. A copy of each contract
establishing rights independent of this Agreement and the Tariff which
provides direct access to the HQ Interconnection, or an opinion of counsel
describing and authenticating such rights, shall be filed with the Secretary
of the Participants Committee.
The NEPOOL EHV PTF Participant Summer Wheeling Rate for any calendar year
shall be applicable to the months in the Summer Period.
The NEPOOL EHV PTF Participant Winter Wheeling Rate for any calendar year
shall be applicable to the months in the Winter Period.
A NEPOOL Exchange Arrangement is one entered into by two Participants each of
which has an ownership interest in a Pool- Planned Unit on its own system
pursuant to which each sells out of its ownership interest, a Unit Contract
Entitlement to the other for a period of time which is, in whole or part, the
same for both sales. Such an arrangement shall constitute a NEPOOL Exchange
Arrangement even though the beginning and ending dates of the two Unit
Contract sale periods are different, but only for the period for which both
sales are in effect. If for any period the number of Kilowatts covered by the
two Unit Contract Entitlements of a NEPOOL Exchange Agreement are not the
same, the portion of the larger Entitlement which exceeds the amount of the
smaller Entitlement shall not be deemed to be covered by such NEPOOL Exchange
Arrangement for purposes of this Section 17.4.
(b) Each Participant shall pay each month for its use of EHV PTF for a
transfer of an Entitlement in a Pool-Planned Unit to a Non- Participant
pursuant to Section 17.2(c) such charge as is fixed by the Participants
Committee at the time of its approval of the sale, and filed with the
Commission.
(c) Fifty percent of all amounts required to be paid with respect to
transfers by a Participant pursuant to subsection (a) or (b) of Section 17.2
shall be paid to a pool transmission fund and distributed monthly among the
Participants in proportion to the respective amounts of their costs with
respect to EHV PTF for the calendar year 1996 as determined in accordance with
the Prior NEPOOL Agreement.
(d) The remaining 50% of all amounts required to be paid with respect to
transfers by a Participant pursuant to subsections (a) or (b) of Section 17.2
shall be paid to, and retained by, the Participant on whose system the
transfer originates, or in the event the EHV PTF system of such Participant is
supported in part by other Participants, then to the Participant on whose
system the transfer originates and such other Participants in proportion to
the respective shares of the costs of such EHV PTF system borne by each of
them or in such other manner as the Participants involved may jointly direct;
provided that the Participant on whose system the transfer originates shall
have the right to waive such 50% payment in whole or part as to a particular
transfer except that no such waiver may adversely affect the payments to any
other Participant which is supporting in part the originating system's EHV PTF
system.
17.5 Payments for Uses of Lower Voltage PTF. Each Participant which uses
another Participant's Lower Voltage PTF pursuant to this Section 17 shall pay
each month to the owner of such Lower Voltage PTF (1) for each Kilowatt of its
use of such Lower Voltage PTF for transfer of Entitlements pursuant to
Subsections 17.2(a), (b) or (c) during the month, and (2) during the Base Term
of the HQ Phase II Firm Energy Contract (and during any extension of the term
of said Contract if and to the extent its HQ Phase II Net Transfer
Responsibility continues during the extension period) for each Kilowatt of its
HQ Phase II Net Transfer Responsibility for the month, the owner's Lower
Voltage PTF Winter Wheeling Rate or Summer Wheeling Rate for the 1996 calendar
year, as determined in accordance with the Prior NEPOOL Agreement; except that
the requirements for such payments shall terminate on March 1, 1999 for
Participants receiving network service under both the Tariff and applicable
Local Network Service Tariff.
17.6 Use of Other Transmission Facilities by Participants. For the period to
and including February 28, 1999, each Participant which has no direct
connection between its system and PTF shall be entitled to use the non- PTF
transmission facilities of any other Participant required to reach its system
for any of the purposes for which PTF may be used under Section 17.2. Such
use shall be effected, and payment made, in accordance with the other
Participant's filed open access tariff.
17.7 Limits on Individual Transmission Charges. Any charges for transmission
service pursuant to this Section 17 by any Participant to another Participant
shall be just, reasonable and not unduly discriminatory or preferential. No
provision of this Section 17 shall be construed to waive the right of any
Participant to seek review of any charge, term or condition applicable to such
transmission service by another Participant by the Commission or any other
regulatory authority having jurisdiction of the transaction.
SECTION 17A
TRANSMISSION OWNERS RESERVED RIGHTS
Notwithstanding any other provision of this Agreement, or any other agreement
or amendment made in connection with the restructuring of NEPOOL, each
Transmission Owner shall retain all of the rights set forth in this Section
17A; provided, however, that such rights shall be exercised in a manner
consistent with the Transmission Owner's rights and obligations under the
Federal Power Act and the Commission's rules and regulations thereunder.
17A.1 Each Transmission Owner shall have the right at any time
unilaterally to file pursuant to Section 205 of the Federal Power Act to
change the revenue requirements underlying its component of the rates for
service under the NEPOOL Tariff and the transmission-related provisions of
this Agreement.
17A.2 Nothing in this Agreement shall restrict any rights, to the extent
such rights exist: (a) of Transmission Owners that are parties to a merger,
acquisition or other restructuring transaction to make a filing under Section
205 of the Federal Power Act with respect to the reallocation or
redistribution of revenues among such Transmission Owners; or (b) of any
Transmission Owner to terminate its participation in NEPOOL pursuant to
Section 21.2 of this Agreement, notwithstanding any effect its withdrawal from
NEPOOL may have on the distribution of transmission revenues among other
Transmission Owners. Further, nothing in this Agreement shall be interpreted
to permit the adoption of a rate design change that is inconsistent with any
settlement under the Tariff accepted by the Commission without the consent of
all signatories to the settlement.
17A.3 Each Transmission Owner retains all rights that it otherwise has
incident to its ownership of its assets, including, without limitation, its
PTF and non-PTF, including the right to build, acquire, sell, merge, dispose
of, retire, use as security, or otherwise transfer or convey all or any part
of its assets, including, without limitation, the right, individually or
collectively, to amend or terminate the Transmission Owner's relationship with
the ISO in connection with the creation of an alternative arrangement for the
ownership and/or operation of its transmission facilities on an unbundled
basis (e.g., a transmission company), subject to necessary regulatory
approvals and to any approvals required under applicable provisions of this
Agreement. This section is not intended to reduce or limit any other rights
of a Transmission Owner as a signatory to this Agreement.
17A.4 The obligation of any Transmission Owner to expand or modify its
transmission facilities in accordance with the Tariff shall be subject to the
Transmission Owners' right to recover, pursuant to appropriate financial
arrangements contained in Commission-accepted tariffs or agreements, all
reasonably incurred costs, plus a reasonable return on investment, associated
with constructing and owning or financing such expansions or modifications to
its facilities.
17A.5 Each Transmission Owner shall have the right to adopt and implement
procedures it deems necessary to protect its electric facilities from physical
damage or to prevent injury or damage to persons or property.
17A.6 Each Transmission Owner retains the right to take whatever actions
it deems necessary to fulfill its obligations under local, state or federal
law.
17A.7 In addition to having the rights reserved under other provisions of
this Section 17A, all Participants retain the right to take any position
before the Commission, and any appellate court with jurisdiction to review a
Commission determination, or to seek a determination by the Commission,
regarding whether, and the extent to which, the Transmission Owners may retain
the exclusive right to make unilateral filings under Section 205 of the
Federal Power Act to amend the Tariff and the transmission related provisions
of this Agreement. If and to the extent the Commission rules that the
Transmission Owners do not retain such rights, then any such amendment that is
not subject to any of Section 17A.1 through 17A.6 may be filed with the
Commission only upon the approval by the Participants Committee of the
amendment under Section 6.11, including Section 6.11(d). If and to the extent
the Commission rules that the Transmission Owners do retain such rights, then
the Transmission Owners, acting through the Transmission Owners Committee,
shall have the exclusive right to make unilateral filings under Section 205 of
the Federal Power Act to amend the Tariff and the transmission- related
provisions of this Agreement, other than filings subject to Sections 17A.1 or
17A.2.
17A.8 (a) Notwithstanding anything to the contrary in this Agreement, the
rights of each Participant under the Federal Power Act shall be preserved.
(b) Any dispute over whether a matter falls within the scope of any of the
rights reserved under this Section 17A will be subject to resolution pursuant
to Section 11.A.
(c) No amendment to any provision of this Section 17A or Section 11B may be
adopted without the agreement of the Transmission Owners specified in Section
11B.
(d) Any agreement entered into between NEPOOL and a System Operator shall
require the System Operator to respect the rights reserved under this Section
17A.
PART FIVE
GENERAL
SECT65535ON 18
GENERATION AND TRANSMISSION FACILITIES
18.1 Designation of Pool-Planned Facilities. At the request of a Participant,
the Participants Committee shall designate as "pool- planned" a generating or
transmission facility to be constructed by the Participant or its Related
Person if the Participants Committee determines that the facility is
consistent with NEPOOL planning. The Participants Committee may not
unreasonably withhold designation as a Pool-Planned Facility of a generation
unit or other facility proposed by one or more Participants in order to
satisfy their anticipated Installed Capability Responsibilities with a mix of
generation and other resources reasonably comparable as to economics and types
to that being developed for New England.
18.2 Construction of Facilities. Subject to Sections 13.1, 15.2, 15.5, 18.3,
18.4 and 18.5, and to the provisions of the Tariff, each Participant shall
have the right to determine whether, and to what extent, additions to and
modifications in its generating and transmission facilities shall be made.
However, each Participant shall give due consideration to recommendations made
to it by the Participants Committee or the System Operator for any such
additions or modifications and shall follow such recommendations unless it
determines in good faith that the recommended actions would not be in its best
interest.
18.3 Protective Devices for Transmission Facilities and Automatic Generation
Control Equipment. Each Participant shall install, maintain and operate such
protective equipment and switching, voltage control, load shedding and
emergency facilities as the Participants Committee may determine to be
required in order to assure continuity of service and the stability of the
interconnected transmission facilities of the Participants. Until the Second
Effective Date, each Participant shall also install, maintain and operate such
Automatic Generation Control equipment as the Participants Committee may
determine to be required in order to maintain proper frequency for the
interconnected bulk power system of the Participants and to maintain proper
power flows into and out of the NEPOOL Control Area.
18.4 Review of Participant's Proposed Plans. Each Participant shall submit to
the System Operator, Participants Committee, the Reliability Committee, and
the Markets Committee or the Tariff Committee, as appropriate, for review by
them, in such form, manner and detail as the Participants Committee may
reasonably prescribe, (i) any new or materially changed plan for additions to,
retirements of, or changes in the capacity of any supply and demand-side
resources or transmission facilities rated 69 kV or above subject to control
of such Participant, and (ii) any new or materially changed plan for any other
action to be taken by the Participant which may have a significant effect on
the stability, reliability or operating characteristics of its system or the
system of any other Participant. No significant action (other than
preliminary engineering action) leading toward implementation of any such new
or changed plan shall be taken earlier than sixty days (or ninety days, if the
System Operator or the Participants Committee determines that it requires
additional time to consider the plan and so notifies the Participant in
writing within the sixty days) after the plan has been submitted to the
Committees. Unless prior to the expiration of the sixty or ninety days,
whichever is applicable, the Participants Committee notifies the Participant
in writing that it has determined that implementation of the plan will have a
significant adverse effect upon the reliability or operating characteristics
of its system or of the systems of one or more other Participants, the
Participant shall be free to proceed. The time limits provided by this
Section 18.4 may be changed with respect to any such submission by agreement
between the Participants Committee and the Participant required to submit the
plan.
18.5 Participant to Avoid Adverse Effect. If the Participants Committee
notifies a Participant pursuant to Section 18.4 that implementation of the
Participant's plan has been determined to have a significant adverse effect
upon the reliability or operating characteristics of its system or the systems
of one or more other Participants, the Participant shall not proceed to
implement such plan unless the Participant or the Non- Participant on whose
behalf the Participant has submitted its plan takes such action or constructs
at its expense such facilities as the Participants Committee determines to be
reasonably necessary to avoid such adverse effect; provided that if the plan
is for the retirement of a supply or demand-side resource, the Participant may
proceed with its plan only if, after engaging in good faith negotiations with
persons designated by the Participants Committee to address the adverse
effects on reliability or operating characteristics, the negotiations either
address the adverse effects to the satisfaction of the Participants Committee,
or no satisfactory resolution can be achieved on terms acceptable to the
parties within 90 days of the Participant's receipt of the Participants
Committee's notice. Any agreement resulting from such negotiations shall be
in writing and shall be filed in accordance with the Commission's filing
requirements if it requires any payment.
SECT65535ON 19
EXPENSES
19.1 Annual Fee. Each Participant shall pay to NEPOOL in January of each year
an annual fee, which shall be applied toward NEPOOL expenses, as follows:
(a) Each End User Participant which is a non-profit residential or small
business consumer, or non-profit group representing such entities, shall pay
an annual fee of $500.
(b) Each End User Participant, other than non-profit residential or small
business consumers or non-profit groups representing such entities, shall pay
an annual fee of $500; plus an additional fee of $500 per megawatt hour of its
highest Energy use during any hour in the preceding year (net of any use of
on-site generation) up to a maximum of $5,000; plus an additional fee of $200
per megawatt hour for each megawatt hour by which its highest Energy use
during any hour in the preceding year (net of any use of on-site generation
during such hour) exceeded 20 megawatt hours.
(c) Each Participant which is a Publicly Owned Entity and a member of the
Publicly Owned Entity Sector shall pay an annual fee of $5,000, except that
any such Participant which is engaged in electricity distribution and had
annual Energy sales of less than 30,000 megawatt hours in the preceding year
shall pay an annual fee of $500, and the difference between $5,000 and $500
for each such Participant shall be paid, as an additional fee, by the
remaining Participants which are Publicly Owned Entities and members of the
Publicly Owned Entity Sector.
(d) Each Participant other than an End User Participant or a Publicly Owned
Entity shall pay an annual fee of $5,000.
19.2 NEPOOL Expenses. Commencing on January 1, 1999, most expenses of the
System Operator are recovered by it directly from Participants and Non-
Participants under the ISO's Tariff for Transmission Dispatch and Power
Administration (the "ISO Tariff") or through direct charges for services
rendered by the ISO, and have ceased to be NEPOOL expenses. At that time, the
payment of a portion of NEPEX expenses from the Savings Fund in accordance
with the Prior NEPOOL Agreement also terminated.
Further, commencing on January 1, 1999 through June 30, 1999, the balance of
NEPOOL expenses remaining to be paid after the application of (i) the annual
fee to be paid pursuant to Section 19.1 and (ii) any fees or other charges for
services or other revenues received by NEPOOL, or collected on its behalf by
the System Operator, shall, except as otherwise provided in Section 19.3, be
allocated among and paid monthly by the Participants in accordance with their
respective voting shares, as determined in accordance with the Agreement
provisions in effect during such period.
Commencing as of July 1, 1999, such balance of NEPOOL expenses for July and
subsequent months shall be divided equally into as many shares as there are
active Sectors pursuant to Sector 6.2 (other than an End User Sector) and each
Sector's share shall be paid monthly by the Participants in each such Sector
(other than an End User Sector) in such manner as the Participants in each
Sector may determine by unanimous vote and advise the ISO, provided that if
the Participants in a Sector fail to agree unanimously on the allocation of
their Sector's share, the Participants in the Sector shall pay for such Sector
share in the same proportion as the vote they are entitled to in the Sector.
Participants in the Sector that are represented by a group voting member shall
subdivide their portion of the Sector's share of expenses in such a manner as
they may determine by unanimous agreement; provided that if there is not
unanimous agreement among the Participants represented by a group member as to
how to allocate their portion of the Sector's share of expenses, such portion
shall be allocated among the Participants represented by that group member as
follows: (i) for each Participant in the Generation Sector represented by a
group voting member, the portion will be allocated in the same proportion that
the Megawatts of generation owned by the Participants represents of the total
Megawatts owned by Participants represented by the group voting member; and
(ii) for Participants in the Transmission Sector, the portion will be
allocated equally among the Participants represented by the group member.
Notwithstanding the foregoing, no portion of such balance shall be paid by End
User Participants and, until such time as an End User Sector is activated, the
monthly share allocated to the Publicly Owned Entity Sector shall be reduced
by one-twelfth of the aggregate annual fees paid by End Users for the year
pursuant to Section 19.1 and one- third of the amount of such reduction shall
be allocated to each of the other three Sectors.
19.3 Restructuring Costs.
(a) The expense of restructuring NEPOOL ("Restructuring Expense"), including
but not limited to (i) software development, hardware and system software
costs for implementation of the Tariff and the new market system, (ii) the
costs of the formation of the Independent System Operator and related
separation costs, (iii) legal and consultant costs related to the amendment of
the NEPOOL Agreement (including the Tariff) and the proceeding with respect
thereto at the Federal Energy Regulatory Commission, and (iv) capital
expenditures and capitalized project costs of the Independent System Operator,
shall be funded (to the extent not already funded) and amortized according to
this Section 19.3.
(b) The Restructuring Expense incurred (other than certain capital
expenditures and capitalized project costs funded separately by the ISO)
before the Second Effective Date (the "Early Restructuring Expense") has been
funded during the period prior to such date by those entities which have been
the Participants during such period. Commencing at the Second Effective Date,
the Early Restructuring Expense shall be amortized in equal monthly amounts
and repaid over the next 60 months with interest thereon at the rate of 8% per
annum from the date of payment. Each month during the first twelve months of
such period each Participant shall pay its percentage "X", as determined
below, of 1/60th of the Early Restructuring Expense, plus accumulated
interest, and each Participant or other Entity which previously paid an
unreimbursed portion of the aggregate Early Restructuring Expense shall be
entitled to receive each month its percentage "Y", as determined below, of the
aggregate amount to be paid for the month, including accumulated interest.
"X" and "Y" shall be determined in accordance with the following formulas:
X = in which
X is the percentage to be paid for a month by a Participant of the
aggregate amount payable pursuant to this subsection (b) by all Participants
for the month.
A is the amount payable by the Participant for the month under Schedule 2
(Energy Administration Services) of the ISO Tariff (as defined in Section
19.2) as amended or revised from time to time.
A1 is the aggregate amount payable by all Participants for the month under
Schedule 2 (Energy Administration Services) of the ISO Tariff as amended or
revised from time to time.
Y = in which
Y is the percentage to be received for a month by a Participant or other
Entity of the aggregate amount to be received pursuant to this subsection (b)
by all Participants or other Entities for the month.
B is the amount of Early Restructuring Expense paid by the Participant or
other Entity which has not previously been reimbursed.
B1 is the aggregate amount of Early Restructuring Expense paid by all
Participants and other Entities which has not previously been reimbursed.
(c) The Restructuring Expense incurred on the Second Effective Date and to
but not including January 1, 2000 or thereafter shall be funded each month by
the Participants in proportion to the Member Fixed Voting Shares (as defined
in Section 6.9(c)) of each Participant as in effect at the beginning of the
month provided, however, that in calculating the allocation of this portion of
the Restructuring Expense, the Member Fixed Voting Shares of End User
Participants that participate in NEPOOL for governance purposes only in
accordance with NEPOOL's Standard Membership Conditions, Waivers and Reminders
("Governance Only End User Participants") shall not be included in such
calculations and the amounts that would otherwise have been payable by such
Governance Only End User Participants will be allocated to all of the other
Participants on the basis of their Member Fixed Voting Shares.
(d) The Restructuring Expense incurred on or after January 1, 2000 (the "Late
Restructuring Expense") shall initially be funded for each month, on an as
incurred basis, by the Participants in proportion to their charges under the
ISO Tariff for the prior month. The aggregate Late Restructuring Expense
funded in any calendar year shall be amortized in equal monthly amounts and
repaid over the next 60 months, commencing in January of the immediately
succeeding calendar year, with interest thereon from the date of payment at
the rate equal to the average Weighted Costs of Capital of all Transmission
Providers in effect on October 20, 1999 (without subsequent adjustment)
determined pursuant to Section II(A)(2)(a) of the Implementation Rule for
Calculating Annual Transmission Revenue Requirements filed as a supplement to
the Tariff. Thus, for example, the Late Restructuring Expense incurred in
2000 will be amortized and repaid over a 60-month period commencing in
January 2001. Each month during the applicable amortization period each
Participant shall pay its share of the portion of the Late Restructuring
Expense being amortized during such period, plus accumulated interest, and
each Participant or other Entity which previously paid an unreimbursed portion
of the aggregate Late Restructuring Expense being amortized during such period
shall be entitled to receive its share of the aggregate amount paid for such
month, including accumulated interest, according to an allocation methodology
that is based on the appropriate schedules of the ISO Tariff, which allocation
methodology will be established under subsection (e) below.
(e) The Participants agree to amend the Agreement within twelve months after
the Second Effective Date to specify how the balance of the Early
Restructuring Expense is to be paid. The Participants agree to amend the
Agreement by November 1, 2000 to provide for the amortization and repayment of
the Late Restructuring Expense, according to an allocation methodology that
is based on the appropriate schedules of the ISO Tariff as approved by the
Commission.
(f) The funding methodology set forth in subsection (d) shall terminate
automatically upon the implementation of a permanent restructuring funding
methodology acceptable to the Participants Committee and the ISO, to the
extent superseded by such permanent restructuring funding methodology.
SECT65535ON 20
INDEPENDENT SYSTEM OPERATOR
(a) The Participants Committee is authorized and directed to approve one or
more agreements to be entered into with the ISO (the "ISO Agreement") and any
amendments to the ISO Agreement which the Committee may deem necessary or
appropriate from time to time. The ISO Agreement shall specify the rights and
responsibilities of NEPOOL and the ISO, for the continued operation of the
NEPOOL control center by the ISO as the control center operator for the
NEPOOL Control Area and the administration of the Tariff. In addition, the
ISO shall be responsible for the furnishing of billing and other services
required by NEPOOL.
(b) The fees and charges of the ISO (other than those recovered under the ISO
Tariff, as defined in Section 19.2, and fees and charges for services which
are separately billed), and any indemnification payable under the ISO
Agreement, shall be shared by the Participants in accordance with Section 19.
(c) The Participants shall provide to the ISO the financial support,
information and other resources necessary to enable the ISO to provide the
services specified in the ISO Agreement, or in this Agreement, in accordance
with Good Utility Practice and subject to the budgeting, approval and dispute
resolution provisions of the ISO Agreement and this Agreement.
(d) The Participants shall provide appropriate funding for the acquisition of
land, structures, fixtures, equipment and facilities, and other capital
expenditures and capitalized project expenditures for the ISO, which are
included in the annual budget for the ISO in accordance with the provisions of
the ISO Agreement, or otherwise specifically approved by the Participants
Committee. All such land, structures, fixtures, equipment and facilities, and
other capital assets, and all software or other intellectual property or
rights to intellectual property or other assets acquired or developed by the
ISO in order to carry out its responsibilities under the ISO Agreement shall
be the property of the Participants or shall be acquired by the Participants
under lease in accordance with arrangements approved by the Participants
Committee. For those Participants subject to the Public Utility Holding
Company Act of 1935 ("PUHCA"), any such acquisition by those Participants is
subject to PUHCA approval to the extent such acquisition requires approval
under PUHCA. Unless otherwise agreed by the Participants, the funding of the
acquisition, or lease, of land, structures, fixtures, equipment and
facilities, and other capital and/or capitalized project related expenditures,
or the acquisition of other assets, and the ownership thereof, or the
obligations of Participants as lessees, shall be in accordance with Section
19.3 of this Agreement. The Participants shall make all such assets
(including the assets of the existing NEPOOL headquarters and control center)
available for use by the ISO in carrying out its responsibilities under the
ISO Agreement. The ISO Agreement shall require the ISO, on behalf of the
Participants, to maintain and care for, insure as appropriate, and pay any
property taxes relating to, assets made available for its use.
(e) The ISO Agreement shall require the ISO to refrain from any action that
would create any lien, security interest or encumbrance of any kind upon the
facilities, equipment or other assets of any Participant, or upon anything
that becomes affixed to such facilities, equipment or other assets. The
Participants and the ISO shall include in the ISO Agreement a provision that,
upon the request of any Participant, the ISO shall (i) provide a written
statement that it has taken no action that would create any such lien,
security interest or encumbrance, and (ii) take all actions within the control
of the ISO, at the direction and expense of the requesting Participant,
required for compliance by such Participant with the provisions of its
mortgage relating to such facilities, equipment or other assets.
(f) The ISO shall have the right to appoint a non-voting member and an
alternate to each NEPOOL committee other than the Participants Committee. The
member appointed to each committee shall have all of the rights of any other
member of the committee except the right to vote.
(g) The ISO shall have the same rights as a Participant to appeal to the
Participants Committee any action taken by any other NEPOOL committee, and
shall be entitled to appear before the Participants Committee on any such
appeal. Further, the ISO shall be entitled to submit any dispute with respect
to a vote of the Participants Committee to approve, modify, or reject a
proposed action to resolution in accordance with Section 21.1, whether or not
the action could have been submitted by a Participant in accordance with
Section 21.1A. In addition, the ISO shall be entitled to submit any dispute
with respect to a vote of the Participants Committee which denies an appeal to
the Participants Committee by the ISO or which takes action on any rulemaking
issue to the Board of Directors of the ISO for determination, subject to the
right of the Participants Committee to seek a review in accordance with the
Alternate Dispute Resolution procedures or by the Commission. The ISO shall
give notice of any such submission to the Secretary of the Participants
Committee within ten days of the action of the Participants Committee and
shall mail a copy of such notice to each member of the Participants Committee.
Pending final action on the submission in accordance with Section 21.1 or by
the Board of Directors of the ISO or the Commission, as appropriate, the
giving of notice of the submission shall suspend the Participants Committee's
action. Unless the Board of Directors of the ISO acts within 60 days of the
ISO's notice to the Participants Committee, the Participants Committee action
will be deemed to be approved.
(h) The ISO Agreement shall specify the ISO's independent authority with
respect to rulemaking.
(i) NEPOOL and its committees and the ISO shall consult and coordinate from
time to time with the relevant state regulatory, siting and other authorities
of the six New England states on operating, planning and other issues of
concern to the states. The New England Conference of Public Utilities
Commissioners, Inc. ("NECPUC") or its designee shall be furnished notices of
meetings of all NEPOOL committees and the Board of Directors of the ISO, and
minutes of their meetings. NECPUC and other state authorities shall be
provided an appropriate opportunity to appear at meetings of the NEPOOL
committees and the Board of Directors of the ISO and to present their views.
Representatives of NEPOOL and the ISO shall be designated to attend meetings
of NECPUC or any committee or task force of NECPUC, to the extent NECPUC or
its committee or task force may deem such attendance appropriate.
(j) Appointment of Technical Committee Officers. The System Operator shall,
after its chief executive officer has conferred with the Participant members
of the Liaison Committee regarding such appointment(s), appoint the Chair and
Secretary of each of the Technical Committees. Each individual appointed by
the System Operator shall be an independent person not affiliated with any
Participant. Before appointing an individual to the position of Chair or
Secretary, the System Operator shall notify the Committee to which such
officer is being appointed of the proposed assignment and, consistent with its
personnel practices, provide any other information about the individual
reasonably requested by the Committee. In the event that a Technical
Committee determines that the performance of the Chair or Secretary of the
Committee is not satisfactory, the Committee shall provide notice to the
System Operator that such performance deficiencies must be corrected within
60 days. If the Committee determines that the performance deficiencies have
not been corrected within the 60-day period, the Committee may vote to remove
the officer, subject to appeal to the Participants Committee. A vote of the
Technical Committee to remove its officer shall be immediately effective and
binding on the System Operator and shall cause the System Operator to appoint
a replacement officer in accordance with the provisions of this Section 20(j)
unless an appeal to the Participants Committee has been taken prior to the end
of the tenth business day following the vote to remove the officer in which
case the vote for removal shall be subject to the outcome of such appeal. A
vote of the Participants Committee with respect to any such appeal shall be
immediately effective and binding on the System Operator and not subject to
any further appeals.
SECT65535ON 21
MISCELLANEOUS PROVISIONS
21.1 Alternative Dispute Resolution.
A. General:
If the ISO is aggrieved by a vote of the Participants Committee to approve,
modify or reject a proposed action under this Agreement, including the Tariff,
it may submit the matter for resolution hereunder. If the Participants
Committee is aggrieved by an action of the ISO Board of Directors ("ISO
Board") under this Agreement, including the Tariff or the ISO Agreement (as
defined in Section 20(a)), the Participants Committee may submit the matter
for resolution hereunder; provided, however, that if the action of the ISO
relates to rulemaking, the Participants Committee may submit the matters for
resolution under this Section 21.1 only with the concurrence of the ISO. Any
Participant which is aggrieved by a vote of the Participants Committee to
approve, modify or reject a proposed action under this Agreement, including
the Tariff, may, as provided below, submit the matter for resolution hereunder
if the vote:
(1) requires such Participant to make a payment or to take any action
pursuant to this Agreement; or
(2) reduces the amount of any receipt or forbids, pursuant to this Agreement,
the taking of any action by the Participant; or
(3) fails to afford it any right to which it is entitled under the provisions
of this Agreement or imposes on it a burden to which it is not subject under
the provisions of this Agreement; or
(4) results in the termination of the Participant's status as a Participant
or imposes any penalty on the Participant; or
(5) results in an allocation of transmission or other facilities support
obligations; or
(6) fails to grant in full an application for transmission service pursuant
to the Tariff.
No legal or regulatory proceeding (except those reasonably necessary to toll
statutes of limitations, claims for laches or other bars to later legal or
regulatory action) shall be initiated by any Participant with respect to any
such matter while proceedings are pending under this Section with respect to
the matter.
B. Procedure:
(1) Submission of a Dispute: The ISO or a Participant seeking review of a
vote of the Participants Committee shall give written notice to the Secretary
of the Participants Committee within ten business days of the vote, and shall
mail or telecopy a copy of its notice to each member of the Participants
Committee. Where the Participants Committee is seeking review of an action of
the ISO Board, the Participants Committee shall give written notice to the
Secretary of the ISO Board. The provider of notice under this Section shall
be referred to herein as the "Aggrieved Party."
(2) Suspension of Action: If the ISO seeks review of a vote of the
Participants Committee pursuant to this Section, the vote to be reviewed shall
be suspended pending resolution of such review by the arbitrator or the
Commission if raised in regulatory proceedings. If a Participant seeks such a
review, the vote to be reviewed shall be suspended for up to 90 days
following the giving of the Participant's notice pending resolution of any
arbitration proceeding unless the Participants Committee determines that the
suspension will imperil the stability or reliability of the NEPOOL Control
Area bulk power supply.
(3) Aggrieved Party Options: (i) If the notice is to seek review of a vote of
the Participants Committee, the Aggrieved Party's notice to the Participants
Committee shall invoke arbitration as described herein in its notice pursuant
to paragraph B(1), and may also initiate mediation with the agreement of the
Participants Committee, while reserving such Party's right to proceed with the
arbitration if mediation does not resolve the matter within 20 days of the
giving of the Party's notice or such longer period as may be fixed by mutual
agreement of the Participants Committee and the Aggrieved Party.
Notwithstanding the initiation of mediation, the arbitration proceeding shall
proceed concurrently with the selection of the arbitrator pursuant to
paragraph C(1) of this Section 21.1.
(ii) If the notice is to seek review of an ISO action, the Participants
Committee's notice to the ISO Board shall (subject to the concurrence of the
ISO for actions relating to rulemaking as provided in Section 21.1A) invoke
arbitration as described herein in its notice pursuant to paragraph B(1), and
may also initiate mediation with the agreement of the ISO Board, while
reserving the Participants Committee's right to proceed with the arbitration
if mediation does not resolve the matter within 20 days of the giving of the
Participants Committee's notice or such longer period as may be fixed by
mutual agreement of the ISO Board and the Participants Committee.
Notwithstanding the initiation of mediation, the arbitration proceeding shall
proceed concurrently with the selection of the arbitrator pursuant to
paragraph C(1) of this Section 21.1.
(4) Mediation Positions not to be Used Elsewhere: All mediation proceedings
pursuant to this Section are confidential and shall be treated as compromise
and settlement negotiations for purposes of applicable rules of evidence.
(5) Time Limits; Duration: Any other Participant that wishes to participate
in an arbitration proceeding hereunder shall give signed written notice to the
Secretary of the Participants Committee, and to the Secretary of the ISO Board
if the ISO is involved in such arbitration, no later than ten calendar days
after the giving of the notice of arbitration. The arbitration procedure shall
not exceed 90 calendar days from the date of the Aggrieved Party's notice
invoking arbitration to the arbitrator's decision unless the parties agree
upon a longer or shorter time. All agreements by the ISO or the aggrieved
Participant and the Participants Committee to use mediation shall establish a
schedule which will control unless later changed by mutual agreement.
C. Arbitration:
(1) Selection of Arbitrator: The ISO or the aggrieved Participant and the
Participants Committee shall attempt to choose by mutual agreement a single
neutral arbitrator to hear the dispute. If the ISO or the Participant and
the Participants Committee fail to agree upon a single arbitrator within ten
calendar days of the giving of notice of arbitration to the Secretary of the
Participants Committee or the Secretary of the ISO Board, as the case may be,
the American Arbitration Association shall be asked to appoint an arbitrator.
In either case, the arbitrator shall be knowledgeable in matters involving
the electric power industry, including the operation of control areas and bulk
power systems, and shall not have any substantial business or financial
relationships with the ISO, NEPOOL or its Participants (other than previous
experience as an arbitrator) unless otherwise mutually agreed by the ISO or
the aggrieved Participant and the Participants Committee.
(2) Costs: NEPOOL shall be responsible for all of the costs of the proceeding
if it is initiated by the ISO or by the Participants Committee. If a
proceeding is initiated by an aggrieved Participant, each party shall be
responsible for the following costs, if applicable:
(i) its own costs incurred during the arbitration process (except that this
does not preclude billing the aggrieved Participant for its share of NEPOOL
Expenses that may include the Participants Committee's arbitration costs);
plus
(ii) One half of the common costs of the arbitration including, but not
limited to, the arbitrator's fee and expenses, the rental charge for a hearing
room and the cost of a court reporter and transcript, if required.
(3) Hearing Location: Unless otherwise mutually agreed, the site for all
arbitration hearings shall be NEPOOL counsel's office.
D. Rules and Procedures:
(1) Procedure and Discovery: The procedural rules (if any), the conduct of
the arbitration and the availability, extent and duration of pre-hearing
discovery (if any), which shall be limited to the minimum necessary to
resolve the matters in dispute, shall be determined by the arbitrator in
his/her sole discretion at or prior to the initial hearing.
(2) Pre-hearing Submissions: The Aggrieved Party shall provide the
arbitrator with a brief written statement of its complaint and a statement of
the remedy or remedies it seeks, accompanied by copies of any documents or
other materials it wishes the arbitrator to review. The Participants
Committee will provide the arbitrator with a copy of this Agreement and all
relevant implementing documents, a brief description of the action being
arbitrated, copies of the minutes of all NEPOOL committee meetings at which
the matter was discussed, a brief statement explaining why the Participants
Committee believes its decision should be upheld by the arbitrator, and
copies of any documents or other materials the Participants Committee wishes
the arbitrator to review. If the Participants Committee is the Aggrieved
Party, the ISO Board will provide copies of minutes of the ISO Board meetings
at which the matter was discussed, a brief statement explaining why the ISO
Board believes its decision should be upheld by the arbitrator, and copies of
any documents or other materials the ISO Board wishes the arbitrator to
review. These submissions shall be made within five days after the selection
of the arbitrator.
In addition, each party shall designate one or more individuals to be
available to answer questions the arbitrator may have on the documents or
other materials submitted by that party. The answers to all such questions
shall be reduced to writing by the party providing the answer and a copy shall
be furnished to the other party.
(3) Initial Hearing: An initial hearing will be held no later than 10 days
after the selection of the arbitrator and shall be limited to issues raised in
the pre-hearing filings. The scheduling of further hearings at the request
of either party or on the arbitrator's own motion shall be within the sole
discretion of the arbitrator.
(4) Decision: The arbitrator's decision shall be due, unless the deadline is
extended by mutual agreement of the ISO or the aggrieved Participant and the
Participants Committee, within sixty days of the initial hearing or within
ninety days of the Aggrieved Party's initiation of arbitration, whichever
occurs first. The arbitrator shall be authorized only to interpret and apply
the provisions of this Agreement and the arbitrator shall have no power to
modify or change the Agreement in any manner.
(5) Effect of Arbitration Decision: The decision of the arbitrator will be
conclusive in a subsequent regulatory or legal proceeding as to the facts
determined by the arbitrator but will not be conclusive as to the law or
constitute precedent on issues of law in any subsequent regulatory or legal
proceedings. An aggrieved party may initiate a proceeding with a court or
with the Commission with respect to the arbitration or arbitrator's decision
only:
if the arbitration process does not result in a decision within the time
period specified and the proceeding is initiated within thirty days after the
expiration of such time period; or
on the grounds specified in Sections 10 and 11 of Title 9 of the United
States Code for judicial vacation or modification of an arbitration award and
the proceeding is initiated within thirty days of the issuance of the
arbitrator's decision.
(6) Other Disputes: In the event a dispute arises with a Non-Participant
which receives or is eligible to receive service under this Agreement or the
Tariff with respect to such service, the Non-Participant shall have the right
to have the dispute considered by the Participants Committee. In the event
the Non-Participant is aggrieved by the Participants Committee's vote on the
dispute, and the vote has any of the effects specified in paragraph A of this
Section 21.1, the aggrieved Non-Participant may require that the dispute be
resolved in accordance with this Section 21.1. To the extent that NEPOOL
provides services to Non-Participants under separate agreements, the
Participants Committee shall incorporate the provisions of this Section by
reference in any such agreement, in which case the term "Participant" shall be
deemed for purposes of the dispute resolution provisions to include such
Non-Participant purchasers of NEPOOL services.
21.2 Payment of Pool Charges; Termination of Status as Participant.
(a) Any Participant shall have the right to terminate its status as a
Participant upon no less than six months' prior written notice given to the
Secretary of the Participants Committee.
(b) If at any time during the term of this Agreement a receiver or trustee of
a Participant is appointed or a Participant is adjudicated bankrupt or an
order for relief is entered under the Federal Bankruptcy Code against a
Participant or if there shall be filed against any Participant in any court
(pursuant to the Federal Bankruptcy Code or any statute of Canada or any state
or province) a petition in bankruptcy or insolvency or for reorganization or
for appointment of a receiver or trustee of all or a portion of the
Participant's property, and within ninety days after the filing of such a
petition against the Participant, the Participant shall fail to secure a
discharge thereof, or if any Participant shall file a petition in voluntary
bankruptcy or seeking relief under any provision of any bankruptcy or
insolvency law or shall make an assignment for the benefit of creditors, the
Participants Committee may terminate such Participant's status as a
Participant as of any time thereafter.
(c) Each Participant is obligated to pay when due in accordance with NEPOOL
procedures all amounts invoiced to it by NEPOOL, or by the ISO on behalf of
NEPOOL. If a Participant disputes a NEPOOL invoice in whole or part, it shall
be entitled to continue to receive service under the Agreement and the Tariff,
so long as the Participant (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 the dispute. If the Participant fails to
meet these two requirements for continuation of service, NEPOOL may suspend
service, in whole or part, to the Participant sixty days after the giving of
notice to the Participant of NEPOOL's intention to suspend service, in
accordance with Commission policy.
(d) In the event a Participant fails, for any reason other than a billing
dispute as described in subsection (c) of this Section 21.2, to pay when due
in accordance with NEPOOL procedures all amounts invoiced to it by NEPOOL, or
by the ISO on behalf of NEPOOL, or the Participant fails to perform any other
obligation under the Agreement or the Tariff, and such failure continues for
at least ten days, NEPOOL may notify the Participant that it is in default and
may initiate a proceeding before the Commission to terminate such
Participant's status as a Participant. Pending Commission action on such
termination, NEPOOL may suspend service, in whole or part, to the Participant
on or after 50 days after the giving of such notice and the initiation of such
proceeding, in accordance with Commission policy, unless the Participant cures
the default within such 50-day period.
(e) If the status of a Participant as a Participant is terminated pursuant to
this Section 21.2 or any other provision of this Agreement, such former
Participant's generation and transmission facilities shall continue to be
subject to such NEPOOL or other requirements relating to reliability as the
Commission may approve in acting on the termination, for so long as the
Commission may direct. Further, if any of such former Participant's
transmission facilities are required in order to permit transactions among any
of the remaining Participants pursuant to this Agreement or the Tariff, all
pending requests for transmission service under the Tariff relating to such
Participant's facilities shall be followed to completion under the
Participant's own tariff and all existing service over the Participant's
facilities shall continue to be provided under the Tariff for a period of
three years. It is the intent of this subsection that no such termination
should be allowed to jeopardize the reliability of the bulk power facilities
of any remaining Participant or should be allowed to impose any unreasonable
financial burden on any remaining Participant.
(f) No such termination of a Participant's status as a Participant shall
affect any obligation of, or to, such former Participant incurred prior to the
effective time of such termination.
21.3 Assignment. The Agreement shall inure to the benefit of, and shall be
binding upon, the successors and assigns of the respective signatories hereto,
but no assignment of a signatory's interests or obligations under the
Agreement or any portion thereof shall be made without the written consent of
the Participants Committee, except as otherwise permitted by the Tariff, or
except in connection with a sale, merger, or consolidation which results in
the transfer of all or a portion of a signatory's generation or transmission
assets to, and the assumption of all of the obligations of the signatory under
this Agreement (or in the case of a transfer of a portion of a signatory's
generation or transmission assets, the assumption of obligations of the
signatory under this Agreement with respect to such assets) by, an acquiring
or surviving Entity which either is, or concurrently becomes, a Participant,
or agrees to assume such of the signatory's obligations with respect to such
assets as the Participants Committee may reasonably require, or except in
connection with the grant of a security interest in a Participant's assets as
security for bonds or other financing.
21.4 Force Majeure. A Participant shall not be considered to be in default in
respect of any obligation hereunder if prevented from fulfilling such
obligation by an event of 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, any order, regulation or restriction imposed by a
court or governmental military or lawfully established civilian authorities,
or any other cause beyond a Participant's control, provided that no event of
Force Majeure affecting any Participant shall excuse that Participant from
making any payment that it is obligated to make under this Agreement. A
Participant whose performance under this Agreement is hindered by an event of
Force Majeure shall make all reasonable efforts to perform its obligations
under this Agreement, and shall promptly notify the Participants Committee of
the commencement and end of any event of Force Majeure.
21.5 Waiver of Defaults. No waiver of the performance by a Participant of any
obligation under this Agreement or with respect to any default or any other
matter arising in connection with this Agreement shall be effective unless
given by the Participants Committee. Any such waiver by the Participants
Committee in any particular instance shall not be deemed a waiver with respect
to any subsequent performance, default or matter.
21.6 Other Contracts. No Participant shall be a party to any other agreement
which in any manner is inconsistent with its obligations under this Agreement.
21.7 Liability and Insurance.
(a) Each Participant will indemnify and save each of the other Participants,
its officers, directors and Related Persons (each an "Indemnified Party")
harmless from and against all actions, claims, demands, costs, damages and
liabilities asserted by a third party against the Indemnified Party seeking
indemnification and arising out of or relating to bodily injury, death or
damage to property caused by or sustained on facilities owned or controlled by
such Participant that are the subject of this Agreement, or caused by a
failure to act in accordance with this Agreement by the Participant from which
indemnification is sought, except (i) to the extent that such liabilities
result from the negligence or willful misconduct of the Participant seeking
indemnification, and (ii) each Participant shall be responsible for all claims
of its own employees, agents and servants growing out of any workmen's
compensation law. The amount of any indemnity payment under the provisions of
this Section 21.7 shall be reduced (including, without limitation,
retroactively) by any insurance proceeds or other amounts actually recovered
by the Indemnified Party in respect of the indemnified action, claim, demand,
cost, damage or liability. Notwithstanding the foregoing, no Participant
shall be liable to any Indemnified Party for any claim for loss of profits or
revenues, attorneys' fees or costs, cost of capital or financing, loss of
goodwill or cost of replacement power arising from a Participant's carrying
out, or failing to carry out, any obligations contemplated by this Agreement
or for any other indirect, incidental, special, consequential, punitive, or
multiple damages or loss; provided, however, that nothing herein shall reduce
or limit the obligations of any Participant to Non- Participants.
(b) Each Participant shall furnish, at its sole expense, such insurance
coverage as the Participants Committee may reasonably require with respect to
its obligation pursuant to Section 21.7(a).
21.8 Records and Information. Each Participant shall keep such records as may
reasonably be required by a NEPOOL committee or the System Operator, and shall
furnish to such committee or the System Operator such records, reports and
information (including forecasts) as it may reasonably require, provided the
confidentiality thereof is protected in accordance with NEPOOL's information
policy.
21.9 Consistency with NPCC and NERC Standards. The standards, criteria and
rules adopted by NEPOOL committees under this Agreement shall be consistent
with those adopted by the NPCC and NERC or any successor to either.
21.10 Construction.
(a) The Table of Contents contained in this Agreement and the headings of the
Sections of this Agreement are intended for convenience only and shall not be
deemed to be part of this Agreement or considered in construing it.
(b) This Agreement shall be interpreted, construed and governed in accordance
with the laws of the State of Connecticut.
21.11 Amendment. Subject to Section 17A and the provisions of this
Section, this Agreement, including the Tariff, and any attachment or exhibit
hereto may be amended from time to time by vote of the Participants in
accordance with Section 6.11.
Any amendment to this Agreement approved in accordance with Section 6.11
and/or Section 17A shall be in writing and shall become effective, and shall
bind all Participants regardless of whether they have executed a ballot in
favor of such amendment, on the date specified in the amendment, subject to
acceptance or approval by the Commission. Nothing herein shall be construed
to prevent any Participant from challenging any proposed amendment before a
court or regulatory agency on the ground that the proposed amendment or its
application to the Participant is in violation of law or of this Agreement.
21.12 Termination. This Agreement shall continue in effect until
terminated, in accordance with the Commission's regulations, by Participants
represented by members of the Participants Committee having Member Fixed
Voting Shares equal to at least 70% of the Member Fixed Voting Shares of all
Participants. No such termination shall relieve any party of any obligation
arising prior to the effective time of such termination.
21.13 Notices to Participants, Committees, Committee Members, or the
System Operator.
(a) Any notice, demand, request or other communication required or authorized
by this Agreement to be given to any Participant shall be in writing, and
shall be (1) personally delivered to the Participants Committee member or
alternate representing that Participant; (2) mailed, postage prepaid, to the
Participant at the address of its member on the Participants Committee as set
out in the NEPOOL roster; (3) sent by facsimile ("faxed") to the Participant
at the fax number of its member on the Participants Committee as set out in
the NEPOOL roster; or (4) delivered electronically to the Participant at the
electronic mail address of its member on the Participants Committee or at the
address of its principal office. The designation of any such address may be
changed at any time by written notice delivered to the Secretary of the
Participants Committee, who shall cause such change to be reflected in the
NEPOOL roster.
(b) Any notice, demand, request or other communication required or authorized
by this Agreement to be given to any NEPOOL committee shall be in writing and
shall be delivered to the Secretary of the committee. Each such notice shall
either be personally delivered to the Secretary, mailed, postage prepaid, or
sent by facsimile ("faxed") to the Secretary at the address or fax number set
out in the NEPOOL roster, or delivered electronically to the Secretary. The
designation of such address may be changed at any time by written notice
delivered to each Participant.
(c) Any notice, demand, request or other communication required or authorized
by this Agreement to be given to a member or alternate to that member of a
Principal Committee (for the purposes of this Section 21.13, individually or
collectively, the "Committee Member") shall be (1) personally delivered to the
Committee Member; (2) mailed, postage prepaid, to the Committee Member at the
address of the Committee Member set out in the NEPOOL roster; (3) sent by
facsimile ("faxed") to the Committee Member at the fax number of the Committee
Member set out in the NEPOOL roster; or (4) delivered electronically to the
Committee Member at the electronic mail address of the Committee Member set
out in the NEPOOL roster. The designation of any such address may be changed
at any time by written notice delivered to the Secretary of the Principal
Committee on which the Committee Member serves, who shall cause such change to
be reflected in the NEPOOL roster.
(d) Any notice, demand, request or other communication required or authorized
by this Agreement to be given to the System Operator shall be in writing, and
shall be (1) personally delivered to the Participants Committee member or
alternate appointed by the System Operator; (2) mailed, postage prepaid, to
the System Operator at the address of its member on the Participants Committee
as set out in the NEPOOL roster; (3) sent by facsimile ("faxed") to the System
Operator at the fax number of its member on the Participants Committee as set
out in the NEPOOL roster; or (4) delivered electronically to the System
Operator at the electronic mail address of its member on the Participants
Committee or at the address of its principal office. The designation of any
such address may be changed at any time by written notice delivered to the
Secretary of the Participants Committee, who shall cause such change to be
reflected in the NEPOOL roster.
(e) To the extent that the Participants Committee is required to serve upon
any Participant a copy of any document or correspondence filed with the
Commission under the Federal Power Act or the Commission's rules and
regulations thereunder, by or on behalf of any Principal Committee, such
service may be accomplished by electronic delivery to the Participant at the
electronic mail address of its Participants Committee member and alternate.
The designation of any such address may be changed at any time by written
notice delivered to the Secretary of the Participants Committee.
(f) Any such notice, demand or request so addressed and mailed by registered
or certified mail shall be deemed to be given when so mailed. Any such
notice, demand, request or other communication sent by regular mail or by
facsimile ("faxed") or delivered electronically shall be deemed given when
received by the Participant, Committee Member, System Operator, or Secretary
of the NEPOOL committee, whichever is applicable.
21.14 Severability and Renegotiation. If any provision of this Agreement
is held by a court or regulatory authority of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall continue in full force and
effect and shall in no way be affected, impaired or invalidated, except as
otherwise explicitly provided in this Section.
If any provision of this Agreement is held by a court or regulatory authority
of competent jurisdiction to be invalid, void or unenforceable, or if the
Agreement is modified or conditioned by a regulatory authority exercising
jurisdiction over this Agreement, the Participants shall endeavor in good
faith to negotiate such amendment or amendments to this Agreement as will
restore the relative benefits and obligations of the Participants under this
Agreement immediately prior to such holding, modification or condition. If
after sixty days such negotiations are unsuccessful the Participants may
exercise their withdrawal or termination rights under this Agreement.
21.15 No Third-Party Beneficiaries. Except for the provisions of this
Agreement and the Tariff which provide for service to Non-Participants, this
Agreement is intended to be solely for the benefit of the Participants and
their respective successors and permitted assigns and, unless expressly stated
herein, is not intended to and shall not confer any rights or benefits on any
third party (other than successors and permitted assigns) not a signatory
hereto.
21.16 Counterparts. This Agreement may be executed in any number of
counterparts, and each executed counterpart shall have the same force and
effect as an original instrument and as if all the parties to all of the
counterparts had signed the same instrument. Any signature page of this
Agreement may be detached from any counterpart of this Agreement without
impairing the legal effect of any signatures thereon, and may be attached to
another counterpart of this Agreement identical in form hereto but having
attached to it one or more signature pages.
IN WITNESS WHEREOF, the signatories have caused this Agreement to be executed
by their duly authorized officers or representatives.
ATTACHMENT A
TO RESTATED
NEPOOL AGREEMENT
METHODOLOGY FOR DETERMINATION OF TRANSMISSION FLOWS
The methodology for determining parallel path transmission flows to be used in
determining the distribution of revenues received for Regional Network Service
provided during the Transition Period, or for Through or Out Service, is as
follows, and shall be determined (1) on the basis of the flows for all
transactions in the NEPOOL Control Area ("Regional Flows") for the purpose of
allocating during the Transition Period Regional Network Service revenues, and
(2) on the basis of the flows for the particular transaction ("Transaction
Flows") for the purpose of allocating revenues during or after the Transition
Period from the furnishing of Through or Out Service:
A. Responsibility for Calculations
The calculation of megawatt mile allocations in accordance with this
methodology shall be performed under the direction of the Reliability
Committee.
B. Periodic Review
Calculations of MW-Mile allocations shall be performed whenever significant
changes to the transmission system load flows, as determined by the
Reliability Committee, occur.
C. Facilities Included in the Analysis
1. Transmission Lines
A calculation of MW-miles shall be determined for all PTF lines.
2. Generators
The analysis shall include all generators with a Winter Capability equal to or
greater than 10.0 MW. Multiple generators connected to a single bus with a
total Winter Capability equal to or greater than 10.0 MW shall also be
included.
3. Transformers
All transformers connecting PTF transmission lines shall be included in the
analysis.
D. Determination of Rate Distribution
1. General
Modeling of the transmission system shall be performed using a system
simulation program and associated cases as approved by the Reliability
Committee.
2. Determination of Regional Flows
The change in real power flow (MW) over each transmission line and transformer
shall be determined for each generator (or group of generators on a single
bus) by determining the absolute value of the difference between the flows on
each facility with the generator(s) modeled off and while operating at its
net Winter Capability. In addition, a generator shall be simulated at each
transmission line tie to the NEPOOL Control Area and changes in flow
determined for this generator off or while generating at a level of 100 MW.
Loads throughout the NEPOOL Control Area shall be proportionally scaled to
account for differences in generator output and electrical losses. The
changes in flow shall be multiplied by the length of each respective line.
Changes in flow through transformers shall be multiplied by a factor of five.
Changes in flow through phase-shifting transformers shall be multiplied by a
factor of ten. The resulting values represent the MW-miles associated with
each facility.
3. Determination of Transaction Flows
a. Definition of Supply and Receipt Areas
For the purposes of these calculations, areas of supply and receipt shall be
determined by the Reliability Committee. These areas shall be based on the
system boundaries of each Local Network.
b. Calculation of MW-Miles The change in real power flow (MW) over each
transmission line and transformer shall be determined for each combination of
supply and receipt areas by determining the absolute value of the difference
between the flows on each facility following a scaled increase of the
supplying areas generation by 100 MW. Loads in the area of receipt shall be
scaled to account for changes in generation and electrical losses. In
instances where the areas of supply and/or receipt are outside the NEPOOL
Control Area, the changes in real power flow will be determined only for
facilities within the NEPOOL Control Area. The changes in flow shall then be
multiplied by the length of each respective line. Changes in flow through
transformers shall be multiplied by a factor of five. Changes in flow through
phase-shifting transformers shall be multiplied by a factor of ten. The
resulting values represent the MW-miles associated with each facility.
4. Assignment of MW-Miles to Participants
Each Participant shall have assigned to it the MW-miles associated with each
PTF facility for which it has full ownership and for which there are no
arrangements in effect by which other Participants support the facility. For
facilities that are jointly owned and/or supported, each Participant shall be
assigned MW-miles in proportion to the percentage of its ownership of
jointly-owned facilities and/or the percentage of its support for facilities
that are jointly supported to the extent such support payments are included in
the determination of Annual Transmission Revenue Requirements.