[Federal Register: December 20, 2002 (Volume 67, Number 245)]
[Notices]
[Page 78089-78114]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20de02-132]
[[Page 78089]]
-----------------------------------------------------------------------
Part III
Department of Energy
-----------------------------------------------------------------------
Bonneville Power Administration
-----------------------------------------------------------------------
2004 Transmission Rate Case; Public Hearing and Opportunities for
Public Review and Comment; Notice
[[Page 78090]]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Bonneville Power Administration
[BPA File No. TR-04]
2004 Transmission Rate Case; Public Hearing and Opportunities for
Public Review and Comment
AGENCY: Bonneville Power Administration (BPA), Department of Energy
(DOE).
ACTION: Notice of 2004 Transmission Rate Case.
-----------------------------------------------------------------------
SUMMARY: BPA File No. TR-04. BPA requests that all comments and
documents intended to become part of the Official Record in this
proceeding contain the file number designation TR-04.
BPA must establish transmission and ancillary service rates to be
effective October 1, 2003, when current transmission and ancillary
service rates expire. BPA's Transmission Business Line (TBL) held a
public workshop in August 2002 to begin discussing with interested
parties issues associated with the upcoming 2004 Transmission Rate
Case. At the parties' suggestion, TBL and the parties met often over
the next two months to negotiate settlement of the rate case. The
resulting Settlement Agreement includes transmission and ancillary
service rate levels for the Fiscal Years 2004 and 2005 rate period, and
addresses a small set of other issues. The Settlement Agreement was
sent to TBL customers and interested parties for signature. TBL signed
the Settlement Agreement after receiving signed agreements from most
TBL customers. TBL's initial rate proposal reflects the terms of the
Settlement Agreement.
By this notice, BPA announces its proposed transmission and
ancillary service rates to be effective on October 1, 2003, and the
commencement of the 2004 Transmission Rate Case.
DATES: Persons wishing to become formal parties to the proceeding must
notify BPA in writing of their intention to do so by submitting a
petition to intervene at the address provided below. Petitions to
intervene must be received by BPA by 4:30 p.m., Pacific Time, on
January 8, 2003. Petitions to intervene are discussed further below, in
Part III.A.
The Rate Case will begin with a pre-hearing conference at 9 a.m. on
January 13, 2003, in Portland, Oregon.
Written comments by non-party participants must be received by
March 21, 2003, to be considered in the Record of Decision (ROD).
ADDRESSES:
1. Petitions to intervene should be directed to George Schaaf,
Hearing Clerk--LT-7, Bonneville Power Administration, 905 NE 11th Ave.,
Portland, Oregon, 97232. In addition, a copy of the petition must be
served concurrently on BPA's General Counsel and directed to Barry
Bennett--LT-7, Office of General Counsel, 905 NE 11th Ave., Portland,
Oregon 97232 (see Part III.A for more information).
2. Written comments by participants should be submitted to the
Manager, Corporate Communication--DM-7, Bonneville Power
Administration, P.O. Box 12999, Portland, Oregon, 97212. You may also
e-mail your comments to: comment@bpa.gov.
3. The pre-hearing conference will be held in the BPA Rates Hearing
Room, 2nd floor, 911 NE 11th Ave., Portland, Oregon.
FOR FURTHER INFORMATION CONTACT: Information may also be obtained from
Michael Hansen--DM-7, Public Involvement and Information Specialist,
Bonneville Power Administration, P.O. Box 3621, Portland, Oregon,
97208-3621; by phone at (503) 230-4328 or toll free at 1-800-622-4519;
or via e-mail to mshansen@bpa.gov.
You may also contact Dennis Metcalf, Transmission Rate Case
Manager, Bonneville Power Administration, P.O. Box 491, Vancouver,
Washington, 98666.
SUPPLEMENTARY INFORMATION:
Table of Contents
Part I--Introduction and Procedural Background
Part II--Purpose and Scope of Hearing
Part III--Public Participation
Part IV--Major Analyses and Summary of Proposal
Part V--2004 Transmission and Ancillary Service Rate Schedules
Part I--Introduction and Procedural Background
Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i),
requires that BPA's rates be established according to certain
procedures. These procedures include, among other things, publication
of notice of the proposed rates in the Federal Register; one or more
hearings conducted as expeditiously as practicable by a Hearing
Officer; opportunity for both oral presentation and written submission
of views, data, questions, and arguments related to the proposed rates;
and a decision by the Administrator based on the record. BPA's rate
proceedings are governed by BPA's Procedures Governing Bonneville Power
Administration Rate Hearings, 51 FR 7611 (1986) (Procedures). These
procedures implement the statutory section 7(i) requirements. This rate
proceeding will be governed by section 1010.9 of the Procedures
providing for a general rate proceeding, as modified by the Hearing
Officer at the pre-hearing conference. However, BPA will not hold any
field hearings to provide for non-party participant oral comments.
Section 1010.7 of the Procedures prohibits ex parte communications. BPA
imposed ex parte limitations beginning December 10, 2003.
The Bonneville Project Act, 16 U.S.C. 832; the Flood Control Act of
1944, 16 U.S.C. 825s; the Federal Columbia River Transmission System
Act, 16 U.S.C. 838; the Northwest Power Act, 16 U.S.C. 839; and the
Federal Power Act, 16 U.S.C. 212(i)(1)(B)(ii) provide guidance
regarding BPA's ratemaking. The Northwest Power Act requires BPA to set
rates that are sufficient to recover, in accordance with sound business
principles, the costs of the acquisition, conservation, and
transmission of electric power, including amortization of the Federal
investment over a reasonable period of years, and the other costs and
expenses incurred by the Administrator. The Federal Columbia
Transmission System Act requires that the costs of the Federal Columbia
River Transmission System be equitably allocated between Federal and
non-Federal power utilizing the system. In addition, rates for Federal
Energy Regulatory Commission (Commission) ordered transmission service
shall be set to permit the recovery of all costs incurred in connection
with the transmission service and necessary associated services. BPA's
proposed 2004 Transmission and Ancillary Service Rate Schedules are
published in Part V below. The Settlement Agreement, and the rate
studies and documentation listed in Part IV will be provided to parties
at the pre-hearing conference to be held on January 13, 2003, beginning
at 9 a.m., at the BPA Rates Hearing Room, 2nd floor, 911 NE 11th Ave.,
Portland, Oregon.
To request a copy of the Settlement Agreement or any of the studies
by telephone, call BPA's document request line, (503) 230-4328 or call
toll-free 1-800-622-4519. Please request the document by its listed
title. Also state whether you require the accompanying documentation
(these can be quite lengthy); otherwise the study alone will be
provided. The Settlement Agreement, studies and documentation will also
be available on BPA's Web site at http://www2.transmission.bpa.gov/ratecase
.
A proposed schedule for the formal hearing is provided below. A
final schedule will be established by the
[[Page 78091]]
Hearing Officer at the pre-hearing conference.
January 13, 2003--Pre-hearing Conference and Filing of BPA Direct Case
January 16, 2003--Clarification
January 21, 2003--Objections to Initial Proposal Due
January 23, 2003--Scheduling Conference
July 28, 2003--Final Record of Decision
If no objections to the TBL's Initial Proposal are filed, it will
not be necessary to schedule additional dates for the hearing. In such
case, the date for the Final Record of Decision can be adjusted. If any
party objects to the Initial Proposal, TBL may continue to defend the
Initial Proposal or submit a revised proposal. If objections are filed,
the TBL proposes to meet with the parties before the scheduling
conference to discuss an appropriate schedule that provides sufficient
time for parties that have objected to the Initial Proposal to file a
direct case, for the TBL to file a revised proposal, if it so chooses,
and for all parties to respond to such revised proposal, if any, and to
the testimony of the other parties.
Part II--Purpose and Scope of Hearing
A. Key Components
1. Overview
BPA is committed to marketing its power and transmission services
separately in a manner that is modeled after the regulatory initiatives
to promote competition in wholesale power markets that were adopted by
the Commission in 1996. The Commission's initiatives in Orders 888 \1\
and 889 \2\ directed public utilities to separate their power merchant
functions from their transmission functions; unbundle transmission and
ancillary services from wholesale power services; and set separate
rates for wholesale generation, transmission, and ancillary services.
Although BPA is not required by statute to follow the Commission's
regulatory directives, to the extent permitted by law BPA has separated
its power and transmission operations and unbundled its rates in a
manner consistent with the directives concerning open access
transmission service. Accordingly, in 1996 BPA established separate
business lines: BPA's Power Business Line (PBL), which performs BPA's
wholesale merchant functions, and BPA's Transmission Business Line
(TBL), which performs BPA's transmission system operations and
reliability functions.
---------------------------------------------------------------------------
\1\ Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Pubic Utilities; Recovery of
Stranded Costs by Public Utilities and Transmitting Utilities, FERC
Stats. & Regs. para. 31,036 (1996).
\2\ Open Access Same-Time Information System (formerly Real-Time
Information Networks) and Standards of Conduct, FERC Stats. & Regs.
para. 31,035 (1996).
---------------------------------------------------------------------------
Beginning with the 2002 rate case, BPA has held separate rate
proceedings to set power and transmission rates. In the 2002 Power Rate
Case, the PBL established power rates to be effective through September
30, 2006. In the 2002 Transmission Rate Case the TBL established
transmission rates to be effective through September 30, 2003. The 2004
Transmission Rate Case proceeding will establish transmission rates for
the period October 1, 2003, through September 30, 2005.
2. PBL as a Party to the Rate Case
Because BPA has separated its power and transmission functions and
sets its power and transmission rates in separate proceedings, it is
appropriate that the PBL be a party to the transmission rate
proceeding. Accordingly, PBL will be considered a party to the
Transmission Rate Case for all purposes under the BPA Procedures. The
PBL may file testimony and briefs as a party and will be entitled to
all other procedural rights of a party. In particular, the PBL shall be
considered a party for purposes of ex parte communications.
B. Settlement Agreement
TBL and most of its customers are parties to a Settlement Agreement
that provides for TBL to submit an initial transmission rate proposal
that incorporates the provisions of the Settlement Agreement. The
Settlement Agreement provides for a 1.5% increase for most transmission
and ancillary service rates, and a 2.6% increase for the Network
Integration (NT) rate. The additional increase in the NT rate is
intended to recover $1 million of redispatch costs. The Settlement
Agreement also includes the following additional provisions: a revised
rate structure for the Energy Imbalance and Generation Imbalance rates;
a reduced Unauthorized Increase Charge; the TBL's commitment to hold a
series of public meetings to address certain TBL business practices;
TBL's commitment to implement systems no later than October 1, 2003,
that allow Point-to-Point Service customers to redirect firm
transmission service; and payment by TBL to PBL of $3 million per year
for redispatch services described in a revised Attachment K to BPA's
Open Access Transmission Tariff (OATT). The Settlement Agreement
provides that TBL agrees to file with the Commission, and the
signatories to the Settlement Agreement agree not to challenge, the
revised Attachment K. BPA will file the revised Attachment K as a
proposed amendment to BPA's OATT to be effective as of October 1, 2003.
Such filing will not be part of this rate proceeding.
The Settlement Agreement recognizes the possibility that parties to
the 2004 Transmission Rate Case that have not signed the Settlement
Agreement may object to the TBL's Initial Proposal. If any party
objects to the Initial Proposal, TBL may continue to defend the Initial
Proposal or submit a revised proposal. If TBL submits a revised
proposal, signatories to the Settlement Agreement may contest any
aspect of the revised proposal. If TBL does not revise its Initial
Proposal, and the Administrator establishes transmission rates
consistent with the Initial Proposal, the signatories have agreed not
to challenge approval of the rates by FERC, or in any judicial forum.
C. Cost Increases
Over the past few years there has been increasing focus on the
reliability and availability of the transmission system. In 1996, a
major transmission outage affected the western United States. From 2000
to 2001, California deregulation, drought in California and the
Northwest, and bottlenecks in the transmission system all focused the
region on system reliability and availability and their effect on
energy costs. In order to ensure transmission system reliability and
availability, BPA developed an infrastructure plan with objectives to
reinforce the transmission system to continue compliance with national
reliability standards; maintain and improve the availability of the
transmission system; and remove constraints that limit electricity
trading and BPA's ability to maintain the system. The TBL capital
program increase of about 10 percent in the FY 2004-2005 period over
current levels reflects the need for system additions to remove
transmission bottlenecks resulting from load growth and the changing
generation patterns and uses, and for replacements of older facilities.
On the expense side, increased expenses consist primarily of additional
interest and depreciation associated with the increased capital
program. TBL will hold increases in operating expenses to less than the
rate of inflation as decided by the Administrator in the Programs in
Review process. The operating expenses include the $3 million per year
that the TBL will pay PBL for redispatch services under the OATT, as
provided in the Settlement Agreement.
[[Page 78092]]
D. Overview of the Public Process
1. Transmission Rate Case Customer Workshops
In preparation for the 2004 Transmission Rate Case, TBL held a
public workshop for customers and interested parties on August 14,
2002. At that workshop, parties recommended that a rate case settlement
be explored. During September and October of 2002, the TBL met
regularly with customers and interested parties to negotiate a
settlement of transmission and ancillary service rate levels and
resolution of other key issues.
2. Program in Review Workshops
In summer and fall 2002, TBL provided an opportunity for public
participation and input on TBL program cost levels through the Programs
InReview (PIR) process. PIR opened on June 19, 2002, with a widespread
notification by mail to about 3000 TBL customers and interested
parties. Notices were also published on TBL's external Web site. Five
public meetings were held around the region during July 2002. At these
public meetings, TBL discussed issues concerning future capital
investments in the transmission system and proposed expense levels for
transmission system development, operation, maintenance, and
reliability for FY 2004-2006. A total of 130 entities attended the
regional meetings. TBL also provided informational materials through
direct mailings, e-mailings, and publication on TBL's external Web
site, and through making staff available to answer questions. In
response to a request from customers for additional information and
discussion of specific program level issues, a technical meeting was
held on September 9, 2002.
The PIR workshops explored customers' and interested parties' views
on: (1) Operating and maintaining an aging transmission system; (2)
building and maintaining a business framework in a changing energy
industry; (3) building a transmission infrastructure to meet load
growth, provide stability for existing contracts, ensure transmission
system reliability, and integrate new resources; and (4) maintaining a
skilled and trained workforce. TBL accepted written and oral comments
on proposed transmission capital spending and expenses through
September 16, 2002.
After consideration of the customer comments, BPA closed out the
PIR public process by issuing a decision from the Administrator on
transmission spending levels for the proposed rate period. The Initial
Proposal is consistent with the results of the Administrator's decision
on transmission program spending levels.
E. Scope of the Transmission Rate Proceeding
Many of the decisions that determine TBL's costs have been or will
be made in public processes other than the transmission rate
proceeding. This section provides guidance to the Hearing Officer as to
those matters that are within the scope of the transmission rate
proceeding and those that are outside the scope.
1. Spending Levels
As described above, Programs In Review workshops were held
throughout the region to clarify, discuss, and provide the public the
opportunity to comment orally and in writing on BPA's proposed capital
expenditures and expenses for transmission. After considering all
comments, the Administrator closed out the public process by issuing a
final decision on spending levels. That decision serves as the basis
for the transmission capital and expense levels that are reflected in
the transmission rate proposal. In addition, decisions may be made by
Congress during this proceeding regarding spending levels for
transmission investments and expenses. Pursuant to section 1010.3(f) of
BPA's Procedures, the Administrator directs the Hearing Officer to
exclude from the record any evidence or arguments that seek in any way
to challenge the appropriateness or reasonableness of the
Administrator's decision on transmission spending levels, including
capital and expense budgets reviewed in the Programs in Review public
process. If any re-examination of spending levels is necessary, that
re-examination will occur outside of the rate proceeding. However, this
direction to the Hearing Officer does not cover the following matters:
sources of capital for investments, interest rate forecasts, scheduled
amortization, forecast depreciation, forecasts of system replacements
for repayment studies, interest expense, expense and revenue
uncertainties, and risks included in the risk analysis.
2. Issues Decided in Power Rate Proceeding
A number of issues that affect transmission and ancillary service
rates have been addressed in BPA's 2002 Power Rate Case. On June 20,
2001, the Administrator established wholesale power rates for the
period October 1, 2001, through September 30, 2006. The Commission
granted interim approval to the rates on September 28, 2001. In the
Power Rate Case, the Administrator made decisions regarding the
following: a methodology for functionalizing generation and
transmission costs, including a methodology for functionalizing
corporate overhead costs to the business lines; costs for generation
inputs for ancillary services, including operating reserves, regulating
reserve, and reactive power and voltage control from generation
resources; the generation costs of station service and remedial action
schemes; and the allocation of the costs of generation integration and
generator step-up transformers to the business lines. The Administrator
also established costs for the delivery of Federal power over third
party transmission systems pursuant to General Transfer Agreements.
The Initial Proposal is consistent with the results of the
Administrator's decision on these and all other issues decided in the
power rate proceeding and will be reflected in all final decisions made
in the transmission rate proceeding. The Administrator directs the
Hearing Officer to exclude from the record all evidence and argument
that seek in any way to address or revisit final decisions that were
made in the 2002 Power Rate Case.
3. Revised Attachment K
The Administrator directs the Hearing Officer to exclude from the
record all evidence and argument that seek in any way to address
revised Attachment K to BPA's OATT. BPA is not required by law to, and
does not, amend its OATT in a rate proceeding. BPA will be submitting
revised Attachment K to the Commission for approval. A party may raise
challenges to revised Attachment K to the Commission at that time,
unless it has signed the Settlement Agreement and TBL does not revise
its Initial Proposal.
F. National Environmental Policy Act Evaluation
BPA is in the process of assessing the potential environmental
effects of its initial rate proposal, as required by the National
Environmental Policy Act (NEPA). In the Business Plan Environmental
Impact Statement (Business Plan EIS), BPA has previously evaluated the
environmental impacts of a range of business structure alternatives
that included, among other things, various rate designs for BPA's
transmission products and services. In August 1995, the BPA
Administrator issued a Record of Decision (Business Plan ROD) that
adopted the Market-Driven Alternative from the Business Plan Final EIS
completed in June 1995. This alternative was selected because,
[[Page 78093]]
among other reasons, it allows BPA to: (1) Recover costs through rates;
(2) competitively market BPA's products and services; (3) develop rates
that meet customer needs for clarity and simplicity; and (4) continue
to meet BPA's legal mandates.
Because this initial rate proposal would likely assist BPA in
accomplishing these goals, the proposal appears consistent with these
aspects of the Market-Driven Alternative. In addition, this rate
proposal is similar to the type of rate designs and resulting rate
levels evaluated in the Business Plan EIS, and implementation of this
rate proposal thus would not be expected to result in significantly
different environmental impacts from those examined for the Market-
Driven Alternative in the Business Plan EIS. Therefore, BPA expects
that this rate proposal will fall within the scope of the Market-Driven
Alternative that was evaluated in the Final Business Plan EIS and
adopted in the Business Plan ROD. In the Administrator's Record of
Decision regarding this rate proposal, therefore, BPA may tier its
decision under NEPA to the Business Plan ROD. Alternatively, BPA may
issue another appropriate NEPA document.
Part III--Public Participation
A. Distinguishing Between ``Participants'' and ``Parties''
BPA distinguishes between ``participants in'' and ``parties to''
the hearings. Apart from the formal hearing process, BPA will receive
written comments, views, opinions, and information from
``participants,'' who are defined in the BPA Procedures as persons who
may submit comments without being subject to the duties of, or having
the privileges of, parties. Participants' written comments will be made
part of the official record and considered by the Administrator.
Participants are not entitled to participate in the pre-hearing
conference; may not cross-examine parties' witnesses, seek discovery,
or serve or be served with documents; and are not subject to the same
procedural requirements as parties.
Written comments by participants will be included in the record if
they are received by March 21, 2003. Written views, supporting
information, questions, and arguments should be submitted to BPA's
Manager of Corporate Communications at the address listed in the
ADDRESSES section of this Notice.
Persons wishing to become a party to this transmission rate
adjustment proceeding must petition BPA in writing. Petitioners may
designate no more than two (2) representatives upon whom service of
documents will be made. Petitions to intervene shall state the name and
address of the person requesting party status, and the person's
interest in the hearing. Petitions to intervene as parties in the rate
proceeding are due to the Hearing Officer by 4:30 p.m., Pacific Time,
on January 8, 2003. The petition should be directed to: George Schaaf,
Hearing Clerk--LT-7, Bonneville Power Administration, 905 NE., 11th
Avenue, Portland, Oregon 97232.
A copy of the petition should be served on BPA's General Counsel
and directed to Barry Bennett--LT-7, Office of General Counsel, 905
NE., 11th Ave., Portland, Oregon 97232.
Petitioners must explain their interests in sufficient detail to
permit the Hearing Officer to determine whether they have a relevant
interest in the hearing. Pursuant to Rule 1010.1(d) of BPA's
Procedures, BPA waives the requirement in Rule 1010.4(d) that an
opposition to an intervention petition be filed and served 24 hours
before the pre-hearing conference. Any opposition to an intervention
petition may instead be made at the pre-hearing conference. Any party,
including TBL, may oppose a petition for intervention. Persons who have
been denied party status in any past BPA rate proceeding shall continue
to be denied party status unless they establish a significant change of
circumstances. The Hearing Officer will rule on all timely
applications. Late interventions are strongly disfavored. Opposition to
a petition to intervene filed after the pre-hearing conference must be
received by BPA within two (2) days after service of the petition.
B. Developing the Record
The hearing record will include, among other things, the
transcripts of the hearing, written material entered into the record by
TBL and the parties, written comments from participants, and other
material accepted into the record by the Hearing Officer. The Hearing
Officer will review the record and will certify the record to the
Administrator for decision.
The Administrator will develop final rates based on the record,
information from the PIR, documents prepared pursuant to the National
Environmental Policy Act and other environmental statutes and such
other material or information as may have been submitted to or
developed by the Administrator. The Administrator will serve copies of
the Record of Decision on all parties. BPA will file its rates with the
Commission for confirmation and approval after issuance of the Record
of Decision.
During the rate proceeding, TBL must continue to meet with
customers in the ordinary course of business. To comport with the
prohibition on ex parte communications, TBL will provide notice of
meetings involving rate proceeding issues to provide an opportunity for
participation by all rate proceeding parties. Parties should be aware,
however, that such meetings may be held on very short notice.
Part IV--Major Analyses and Summary of Proposal
A. Major Analyses in Studies and Testimony
1. Revenue Requirement Study
This Study includes the calculation of transmission revenue
requirements for the FY 2004-2005 rate period and demonstration of cost
recovery for the transmission function. The Revenue Requirement Study
also includes an analysis of financial risks.
2. Revenue Forecast Testimony
This testimony includes the FY 2004 and 2005 revenue forecast at
current 2002 transmission and ancillary service rates and at proposed
2004 rate levels based on forecasted loads and sales during the period.
B. Summary of Proposal
1. Transmission Rates
All of the rates are being increased 1.5% unless otherwise noted.
TBL is proposing five rate schedules for the use of its Integrated
Network. Except for the changes included in the Settlement Agreement,
no other changes from the 2002 transmission rates are being proposed.
The proposed transmission rate schedules for use of the Integrated
Network are as follows:
[sbull] Formula Power Transmission (FPT-04.1 and FPT-04.3) rates--
The two FPT rates are based on the cost of specific types of
facilities, including a distance component for the use of transmission
lines, and are charged on a contract demand basis. Charges for the two
required ancillary services, Reactive Supply and Voltage Control from
Generation Sources, and Scheduling, System Control and Dispatch, are
embedded in the FPT rates. The FPT-04.1 rate is proposed for contracts
that allow annual rate adjustments. The FPT-04.3 rate is proposed for
contracts that allow a rate change only once every three years. FPT-
04.3 customers are given a choice of a 1.5% increase effective October
1, 2003, or a 3% increase effective October 1, 2004.
[[Page 78094]]
Although TBL is not offering new FPT contracts, a number of FPT
contracts continue in place during the rate period.
[sbull] Integration of Resources (IR-04) rate--The IR rate is a
postage stamp, contract demand rate. Charges for the two required
ancillary services, Reactive Supply and Voltage Control from Generation
Sources, and Scheduling, System Control and Dispatch, are embedded in
the IR rate. A Short Distance Discount is available when resources are
75 miles or less from load. Although TBL is not offering new IR
contracts, a number of IR contracts continue in place during the rate
period.
[sbull] Network Integration Transmission (NT-04) rate--The NT rate
applies to customers taking NT Service under the OATT. The NT rate
schedule includes a Load Shaping Charge applied to the customer's total
load on the hour of the Monthly Transmission Peak Load, and a Base
Charge applied to the customer's total load less Customer-Served Load,
if any. Customer-Served Load is the amount of load that the customer
agrees to serve on a firm basis without using its NT service. The NT
rate is being increased 2.6%.
Point-to-Point (PTP-04) rate--The PTP rate is a contract demand
rate that applies to customers taking PTP Service on BPA's network
facilities under the OATT. There are separate PTP rates for long-term
firm service; short-term firm and non-firm service; and hourly firm and
non-firm service. A Short Distance Discount is available for qualified
long-term firm service. All short-term PTP rates are downwardly
flexible.
In addition to the rates for network use, other proposed
transmission rates include:
[sbull] Southern Intertie (IS-04) and the Montana Intertie (IM-04)
rates are contract demand rates that apply to customers taking PTP
Service under the OATT on the Southern Intertie and Montana Intertie.
These rates are structured similarly to the PTP rate for service on
network facilities.
[sbull] The Townsend-Garrison Transmission (TGT-04) rate and the
Eastern Intertie rate (IE-02) apply to service under the Montana
Intertie agreement.
[sbull] The Use-of-Facilities (UFT-04) rate establishes a formula
for charging for the use of specific facilities based on the annual
cost of those facilities.
[sbull] The Advance Funding (AF-04) rate allows TBL to collect the
capital and related costs of specific facilities through an advance-
funding mechanism.
Because the TGT, UFT, and AF rates are formula rates, the 1.5%
increase does not apply to them.
2. Ancillary Services Rates
In addition to the 1.5% rate increase to the Ancillary Services and
Control Area Service Rates, TBL proposes to revise other aspects of its
Ancillary Services and Control Area Services rates as follows:
[sbull] The rates for Scheduling, System Control and Dispatch
Service and Reactive Supply and Voltage Control from Generation Sources
Service clarify that the Billing Factor for each rate is based on all
PTP transmission service purchased under TBL's OATT regardless of
whether the Transmission Customer actually uses (schedules) the
transmission. This change is only a clarification, not a substantive
change.
[sbull] The rates for Energy Imbalance Service, an Ancillary
Service, and Generation Imbalance Service, a Control Area Service,
establish three Deviation Bands for each rate, and eliminate the 100
mills per kilowatthour penalty charge, except for intentional
deviations. In addition, wind resources and new generation resources
undergoing testing before commercial operation will be exempt from
Deviation Band 3 for Generation Imbalance Service.
[sbull] Rates for Operating Reserve--Spinning Reserve Service and
Operating Reserve--Supplemental Reserve Service Ancillary Services
require generators in the BPA Control Area to pay for or return energy
provided by BPA in the event of a contingency involving that generator.
The TBL's proposal clarifies that the TBL can direct customers or
generators, as applicable, to either purchase operating reserve energy
at the applicable market index price, or return the energy at specified
times.
[sbull] The TBL proposes to revise the definition of Spill
Condition to clarify that a Spill Condition, for the purpose of
determining a credit or payment for Deviations under the Energy
Imbalance or Generation Imbalance rates, exists when spill physically
occurs on the BPA system due to lack of load or markets.
3. Other Charges
Other charges that may apply to a customer's transmission service
include a Delivery Charge for the use of low-voltage delivery
substations, a Power Factor Penalty Charge, a Reservation Fee for
customers that delay commencement of long-term firm service,
Incremental Rates for transmission requests that require new
facilities, and a penalty charge for failure to comply with TBL's
curtailment, redispatch or load shedding orders. Except for a 1.5%
increase in the Delivery Charge, the TBL is not proposing any changes
to these charges.
The TBL is proposing to reduce the Unauthorized Increase Charge to
two times the rate applicable to the customer's service, capped at two
times the monthly charge for Long-Term Service. The rate proposal also
includes a 1.5% increase for the General Transfer Agreement (GTA)
Delivery Charge for low-voltage delivery service of Federal power
provided under GTA's and other non-Federal transmission service
agreements.
C. Issues
The primary issue for the 2004 Transmission Rate Case is whether
the Administrator should adopt transmission rates consistent with the
Settlement Agreement. Adoption of the Settlement Agreement would avoid
a potentially long, expensive, and contentious rate process. It
provides certainty to BPA and its customers for two more years, and
avoids cost shifts that could result from new cost allocations and rate
designs. For TBL, the settlement establishes rates that recover its
costs and provide a high probability of making its Treasury payments.
For the customers, the transmission rates increase at a pace well below
the general rate of inflation.
Part V--2004 Transmission and Ancillary Service Rate Schedules
Schedule FPT-04.1 Formula Power Transmission Rate
Section I. Availability
This schedule supersedes Schedule FPT-02.1 for all firm
transmission agreements which provide for application of FPT rates that
may be adjusted not more frequently than once a year. This schedule is
applicable only to such transmission agreements executed prior to
October 1, 1996. It is available for firm transmission of non-Federal
power using the Main Grid and/or Secondary System of the Federal
Columbia River Transmission System. This schedule is for full-year and
partial-year service and for either continuous or intermittent service
when firm transmission service is required. For facilities at voltages
lower than the Secondary System, a different rate schedule may be
specified. Service under this schedule is subject to BPA-TBL's General
Rate Schedule Provisions (GRSPs).
Section II. Rates
The monthly charge per kilowatt shall be one-twelfth of the sum of
the Main Grid Charge and the Secondary System
[[Page 78095]]
Charge, as applicable and as specified in the agreement.
A. Main Grid Charge
The Main Grid Charge per kilowatt shall be the sum of one or more
of the following annual charges as specified in the agreement:
1. Main Grid Distance: $0.0511 per mile
2. Main Grid Interconnection Terminal: $0.53
3. Main Grid Terminal: $0.59
4. Main Grid Miscellaneous Facilities: $2.91
B. Secondary System Charge
The Secondary System Charge per kilowatt shall be the sum of one or
more of the following annual charges as specified in the agreement:
1. Secondary System Distance: $0.5021 per mile
2. Secondary System Transformation: $5.49
3. Secondary System Intermediate Terminal: $2.12
4. Secondary System Interconnection Terminal: $1.50
Section III. Billing Factors
Unless otherwise stated in the agreement, the Billing Factor for
the rates specified in section II shall be the largest of:
1. The Transmission Demand;
2. The highest hourly Scheduled Demand for the month; or
3. The Ratchet Demand.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Ancillary Services that may be required to support FPT transmission
service are available under the ACS rate schedule. FPT customers do not
pay the ACS charges for Scheduling, System Control and Dispatch Service
and Reactive Supply and Voltage Control from Generation Sources
Service, because these services are included in FPT service.
B. Failure To Comply Penalty
Customers taking service under this rate schedule are subject to
the Failure to Comply Penalty Charge specified in section II.B of the
GRSPs.
C. Power Factor Penalty
Customers taking service under this rate schedule are subject to
the Power Factor Penalty Charge specified in section II.C of the GRSPs.
Schedule FPT-04.3 Formula Power Transmission RATE
Section I. Availability
This schedule supersedes Schedule FPT-02.3 for all firm
transmission agreements which provide for application of FPT rates that
may be adjusted not more frequently than once every three years, except
as provided under Section IV.D. This schedule is applicable only to
such transmission agreements executed prior to October 1, 1996. It is
available for firm transmission of non-Federal power using the Main
Grid and/or Secondary System of the Federal Columbia River Transmission
System. This schedule is for full-year and partial-year service and for
either continuous or intermittent service when firm transmission
service is required. For facilities at voltages lower than the
Secondary System, a different rate schedule may be specified. Service
under this schedule is subject to BPA-TBL's General Rate Schedule
Provisions (GRSPs).
Section II. Rates
The monthly charge per kilowatt shall be one-twelfth of the sum of
the Main Grid Charge and the Secondary System Charge, as applicable and
as specified in the agreement. Fiscal Years run from October through
September.
A. Fiscal Year 2004 Charges
1. Main Grid Charge
The Main Grid Charge per kilowatt shall be the sum of one or more
of the following annual charges as specified in the agreement:
a. Main Grid Distance: $0.0503 per mile
b. Main Grid Interconnection Terminal: $0.52
c. Main Grid Terminal: $0.58
d. Main Grid Miscellaneous Facilities: $2.87
2. Secondary System Charge
The Secondary System Charge per kilowatt shall be the sum of one or
more of the following annual charges as specified in the agreement:
a. Secondary System Distance: $0.4947 per mile
b. Secondary System Transformation: $5.41
c. Secondary System Intermediate Terminal: $2.09
d. Secondary System Interconnection Terminal: $1.48
B. Fiscal Year 2005 Charges
1. Main Grid Charge
The Main Grid Charge per kilowatt shall be the sum of one or more
of the following annual charges as specified in the agreement:
a. Main Grid Distance: $0.0518 per mile
b. Main Grid Interconnection Terminal: $0.54
c. Main Grid Terminal: $0.60
d. Main Grid Miscellaneous Facilities: $2.96
2. Secondary System Charge
The Secondary System Charge per kilowatt shall be the sum of one or
more of the following annual charges as specified in the agreement:
a. Secondary System Distance: $0.5095 per mile
b. Secondary System Transformation: $5.57
c. Secondary System Intermediate Terminal: $2.15
d. Secondary System Interconnection Terminal: $1.52
Section III. Billing Factors
Unless otherwise stated in the agreement, the Billing Factor for
the rates specified in section II shall be the largest of:
1. The Transmission Demand;
2. The highest hourly Scheduled Demand for the month; or
3. The Ratchet Demand.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Ancillary Services that may be required to support FPT transmission
service are available under the ACS rate schedule. FPT customers do not
pay the ACS charges for Scheduling, System Control and Dispatch Service
and Reactive Supply and Voltage Control from Generation Sources
Service, because these services are included in FPT service.
B. Failure To Comply Penalty
Customers taking transmission service under FPT agreements are
subject to the Failure to Comply Penalty specified in section II.B of
the GRSPs.
C. Power Factor Penalty
Customers taking transmission service under FPT agreements are
subject to the Power Factor Penalty Charge specified in section II.C of
the GRSPs.
D. Customer Election of Rate
Customers may elect to pay the rates specified in the FPT-04.1 rate
schedule for the entire FY 2004 and FY 2005 rate period instead of the
rates specified in Section II of this FPT-04.3 rate schedule. Customers
electing to pay the FPT-04.1 rate must notify BPA-TBL of
[[Page 78096]]
their election in writing prior to August 1, 2003.
Schedule IR-04 Integration of Resources Rate
Section I. Availability
This schedule supersedes Schedule IR-02 and is available for
transmission of non-Federal power for full-year firm transmission
service and nonfirm transmission service in amounts not to exceed the
customer's total Transmission Demand using Federal Columbia River
Transmission System Network and Delivery facilities. This schedule is
applicable only to Integration of Resource (IR) agreements executed
prior to October 1, 1996. Service under this schedule is subject to
BPA-TBL's General Rate Schedule Provisions (GRSPs).
Section II. Rates
The monthly IR rate shall be A or B.
A. Base Rate
$1.261 per kilowatt.
B. Short Distance Discount (SDD) Rate
For Points of Integration (POI) specified in the IR agreement as
being short-distance POIs, for which Network facilities are used for a
distance of less than 75 circuit miles, the monthly rate per kilowatt
shall be the sum of:
1. $0.233, and
2. (0.6 + (0.4 x transmission distance/75)) x $1.028
Where:
The transmission distance is the circuit miles between a designated
POI for a generating resource of the customer and a designated Point of
Delivery serving load of the customer. Short-distance POIs are
determined by BPA-TBL after considering factors in addition to
transmission distance.
Section III. Billing Factors
The Billing Factor for rates specified in section II shall be the
largest of:
1. The annual Transmission Demand, or, if defined in the agreement, the
annual Total Transmission Demand;
2. The highest hourly Scheduled Demand for the month; or
3. The Ratchet Demand.
To the extent that the agreement provides for the IR customer to be
billed for transmission service in excess of the Transmission Demand or
Total Transmission Demand, as defined in the agreement, at an hourly
nonfirm rate, such excess transmission service shall not contribute to
the Billing Factor for the IR rates in section II; provided that the IR
customer requests such treatment and BPA-TBL approves such request in
accordance with the prescribed provisions in the agreement. The rate
for transmission service in excess of the Transmission Demand will be
pursuant to the Point-to-Point Rate (PTP-04) for Hourly Non-Firm
Service.
When the Scheduled Demand or Ratchet Demand is the Billing Factor,
short-distance POIs shall be charged the Base Rate specified in section
II.A for the amount in excess of Transmission Demand.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Ancillary Services that may be required to support IR transmission
service are available under the ACS rate schedule. IR customers do not
pay the ACS charges for Scheduling, System Control and Dispatch Service
and Reactive Supply and Voltage Control from Generation Sources
Service, because these services are included in IR service.
B. Delivery Charge
Customers taking service over Delivery facilities are subject to
the Delivery Charge specified in section II.A of the GRSPs.
C. Failure To Comply Penalty
Customers taking service under this rate schedule are subject to
the Failure to Comply Penalty Charge specified in section II.B of the
GRSPs.
D. Power Factor Penalty
Customers taking service under this rate schedule are subject to
the Power Factor Penalty Charge specified in section II.C of the GRSPs.
E. Ratchet Demand Relief
Under appropriate circumstances, BPA-TBL may waive or reduce the
Ratchet Demand. An IR customer seeking a reduction or waiver must
demonstrate good cause for relief, including a demonstration that:
1. The event which resulted in the Ratchet Demand
(a) was the result of an equipment failure or outage that could not
reasonably have been foreseen by the customer; and
(b) did not result in harm to BPA-TBL's transmission system or
transmission services, or to any other Transmission Customer; or
2. The event which resulted in the Ratchet Demand
(a) was inadvertent;
(b) could not have been avoided by the exercise of reasonable care;
(c) did not result in harm to BPA-TBL's transmission system or
transmission services, or to any other Transmission Customer; and
(d) was not part of a recurring pattern of conduct by the IR
customer.
If the IR customer causes a Ratchet Demand to be established in a
series of months during which the IR customer has not received notice
from BPA-TBL of such Ratchet Demands by billing or otherwise, and the
Ratchet Demand(s) established after the first Ratchet Demand were due
to the lack of notice, then BPA-TBL may establish a Ratchet Demand for
the IR customer based on the highest Ratchet Demand in the series. This
highest Ratchet Demand will be charged in the month it is established
and the following 11 months. All other Ratchet Demands based on such a
series (including the Ratchet Demand established in the first month if
it is not the highest Ratchet Demand) will be waived.
F. Cost Contribution
The cost components and their contribution to the IR rate (section
II.A) are:
1. Transmission Service--81.5%
2. Scheduling, System Control and Dispatch Service--13.2%
3. Reactive Supply and Voltage Control from Generation Sources
Service--5.3%
G. Self-Supply of Reactive Supply and Voltage Control From Generation
Sources Service
A credit for self-supply of Reactive Supply and Voltage Control
from Generation Sources Service will be available for IR customers on
an equivalent basis to the credit for PTP Transmission Customers.
Schedule NT-04
Network Integration Rate
Section I. Availability
This schedule supersedes Schedule NT-02. It is available to
Transmission Customers taking Network Integration Transmission (NT)
Service over Federal Columbia River Transmission System Network and
Delivery facilities. Terms and conditions of service are specified in
the Open Access Transmission Tariff. This schedule is available also
for transmission service of a similar nature that may be ordered by the
Federal Energy Regulatory Commission (FERC) pursuant to sections 211
and 212 of the Federal Power Act (16 U.S.C. 824j and 824k). Service
under this schedule is subject to BPA-TBL's General Rate Schedule
Provisions (GRSPs).
[[Page 78097]]
Section II. Rates
The monthly charge will be the sum of A and B.
A. Base Charge
$1.028 per kilowatt per month.
B. Load Shaping Charge
$0.425 per kilowatt per month.
Section III. Billing Factors
A. Base Charge
1. If no Declared Customer-Served Load (CSL) is specified in the
customer's NT Service Agreement, the monthly Billing Factor for the
Base Charge specified in section II.A shall be the customer's Network
Load on the hour of the Monthly Transmission Peak Load.
2. If an amount of Declared CSL is specified in the customer's NT
Service
Agreement, the monthly Billing Factor for the Base Charge specified
in section II.A shall be a or b:
a. For the billing month, if the sum of the Actual CSLs occurring
during Heavy Load Hours (HLH) is greater than or equal to 60 percent of
the Declared CSL multiplied by the number of HLHs in the billing month,
the monthly Billing Factor shall be the customer's Network Load on the
hour of the Monthly Transmission Peak Load, less Declared CSL.
b. For the billing month, if the sum of the Actual CSLs occurring
during HLH is less than 60 percent of the Declared CSL multiplied by
the number of HLHs in the billing month, the monthly Billing Factor
shall be the customer's Network Load on the hour of the Monthly
Transmission Peak Load. The Billing Factor will be reduced by any
megawatts charged the NT Unauthorized Increase Charge under section
IV.D. for the month.
Where:
``Declared Customer-Served Load (CSL)'' is the monthly amount in
megawatts of the Transmission Customer's Network Load that the
Transmission Customer elects to serve on a firm basis from sources
internal to its system or over non-Federal transmission facilities or
pursuant to contracts other than the Network Integration Service
Agreement. The customer's Declared CSL is contractually specified for
each month.
``Actual Customer-Served Load (CSL)'' is the actual hourly amount
in megawatts of the Network Load that the customer serves on a firm
basis from sources internal to its system or over non-Federal
transmission facilities or pursuant to contracts other than the Network
Integration Service Agreement.
B. Load Shaping Charge
The monthly Billing Factor for the Load Shaping Charge specified in
section II.B shall be the Network Load on the hour of the Monthly
Transmission Peak Load.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Customers taking service under this rate schedule are subject to
the ACS Scheduling, System Control and Dispatch Service Rate and the
Reactive Supply and Voltage Control from Generation Sources Service
Rate. Other Ancillary Services that are required to support NT Service
are also available under the ACS rate schedule.
B. Delivery Charge
Customers taking NT Service over Delivery facilities are subject to
the Delivery Charge specified in section II.A of the GRSPs.
C. Failure To Comply Penalty
Customers taking NT Service are subject to the Failure to Comply
Penalty specified in section II.B of the GRSPs.
D. Metering Adjustment
At those Points of Delivery that do not have meters capable of
determining the demand on the hour of the Monthly Transmission Peak
Load, the Billing Demand shall be calculated by substituting (1) the
sum of the highest hourly demand that occurs during the billing month
at all Points of Delivery multiplied by 0.79 for (2) Network Load on
the hour of the Monthly Transmission Peak Load.
E. Power Factor Penalty
Customers taking PTP Transmission Service are subject to the Power
Factor Penalty Charge specified in section II.C of the GRSPs.
F. Unauthorized Increase Charge
If the Network Customer's Actual CSL is less than its Declared CSL,
the Unauthorized Increase Charge specified in section II.G of the GRSPs
shall be assessed.
G. Direct Assignment Facilities
BPA-TBL shall collect the capital and related costs of a Direct
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not
limited to operations, maintenance, and general plant costs, also shall
be recovered from the Network Customer under an applicable rate
schedule.
H. Incremental Cost Rates
The rates specified in section II are applicable to service over
available transmission capacity. Network Customers that integrate new
Network Resources, new Member Systems, or new native load customers
that would require BPA-TBL to construct Network Upgrades shall be
subject to the higher of the rates specified in section II or
incremental cost rates for service over such facilities. Incremental
cost rates would be developed pursuant to section 7(i) of the Northwest
Power Act.
I. Rate Adjustment Due to FERC Order Under FPA Sec. 212
Customers taking service under this rate schedule are subject to
the Rate Adjustment Due to FERC Order under FPA sec. 212 specified in
section II.D of the GRSPs.
Schedule PTP-04
Point-to-Point Rate
Section I. Availability
This schedule supersedes Schedules PTP-02. It is available to
Transmission Customers taking Point-to-Point (PTP) Transmission Service
over Federal Columbia River Transmission System (FCRTS) Network and
Delivery facilities, and for hourly nonfirm service over such FCRTS
facilities for customers with Integration of Resources agreements.
Terms and conditions of PTP Transmission Service are specified in the
Open Access Transmission Tariff. This schedule is available also for
transmission service of a similar nature that may be ordered by the
Federal Energy Regulatory Commission (FERC) pursuant to sections 211
and 212 of the Federal Power Act (16 U.S.C. 824j and 824k). Service
under this schedule is subject to BPA-TBL's General Rate Schedule
Provisions (GRSPs).
Section II. Rates
A. Long-Term Firm PTP Transmission Service $1.028 per kilowatt per
month
B. Short-Term Firm and Non-Firm PTP Transmission Service
For each reservation, the rates shall not exceed:
1. Monthly, Weekly, and Daily Firm and Non-Firm Service
a. Days 1 through 5--$0.047 per kilowatt per day
b. Day 6 and beyond--$0.035 per kilowatt per day
2. Hourly Firm and Non-Firm Service--2.96 mills per kilowatthour
[[Page 78098]]
Section III. Billing Factors
A. All Firm Service and Monthly, Weekly and Daily Non-Firm Service
The Billing Factor for each rate specified in sections II.A and
II.B for all service except Hourly Non-Firm Service shall be the
Reserved Capacity, which is the greater of:
1. the sum of the capacity reservations at the Point(s) of Receipt,
or
2. the sum of the capacity reservations at the Point(s) of
Delivery.
B. Hourly Non-Firm Service
The Billing Factor for the rate specified in section II.B.2 for
Hourly Non-Firm Service shall be the scheduled kilowatthours.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Customers taking service under this rate schedule are subject to
the ACS-04 Scheduling, System Control and Dispatch Service Rate and the
Reactive Supply and Voltage Control from Generation Sources Service
Rate. Other Ancillary Services that are required to support PTP
Transmission Service on the Network are available under the ACS rate
schedule.
B. Delivery Charge
Customers taking PTP Transmission Service over Delivery facilities
are subject to the Delivery Charge specified in section II.A of the
GRSPs.
C. Failure to Comply Penalty
Customers taking service under this rate schedule are subject to
the Failure to Comply Penalty Charge specified in section II.B of the
GRSPs.
D. Interruption of Non-Firm PTP Transmission Service
If daily, weekly or monthly Non-Firm PTP Transmission Service is
interrupted, the rates charged under section II.B.1 shall be prorated
over the total hours in the day to give credit for the hours of such
interruption.
E. Power Factor Penalty
Customers taking service under this rate schedule are subject to
the Power Factor Penalty Charge specified in section II.C of the GRSPs.
F. Reservation Fee
Customers who postpone the commencement of Long-Term Firm Point-To-
Point Transmission Service by reserving deferred service, or by
requesting an extension of the Service Commencement Date, will be
subject to the Reservation Fee specified in section II.E of the GRSPs.
G. Short-Distance Discount (SDD)
When a Point of Receipt (POR) and Point of Delivery (POD) use FCRTS
facilities for a distance of less than 75 circuit miles and are
designated as being short distance in the PTP Service Agreement, the
monthly capacity reservations for the relevant POR and POD shall be
adjusted, for the purpose of computing the monthly bill for annual
service, by the following factor:
0.6 (0.4 x transmission distance/75)
Such adjusted monthly POR and POD reservations shall be used to
compute the billing factors in section III.A to calculate the monthly
bill for Long-Term Firm PTP Transmission Service. The POD capacity
reservation eligible for the SDD may be no larger than the POR capacity
reservation. The distance used to calculate the SDD will be
contractually specified and based upon path(s) identified in power flow
studies. If a set of contiguous PODs qualifies for an SDD, the
transmission distance used in the calculation of the SDD shall be
between the POR and the POD farthest from the POR.
If the customer requests secondary PORs or PODs that use SDD-
adjusted capacity reservations for any period of time during a month,
the SDD shall not be applied that month.
H. Unauthorized Increase Charge
Customers who exceed their capacity reservations at any Point of
Receipt (POR) or Point of Delivery (POD) shall be subject to the
Unauthorized Increase Charge specified in section II.G of the GRSPs.
I. Direct Assignment Facilities
BPA-TBL shall collect the capital and related costs of a Direct
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not
limited to operations, maintenance, and general plant costs, also shall
be recovered from the PTP Transmission Customer under an applicable
rate schedule.
J. Incremental Cost Rates
The rates specified in section II are applicable to service over
available transmission capacity. Customers requesting new or increased
firm service that would require BPA-TBL to construct Network Upgrades
to alleviate a capacity constraint may be subject to incremental cost
rates for such service if incremental cost is higher than embedded
cost. Incremental cost rates would be developed pursuant to section
7(i) of the Northwest Power Act.
K. Rate Adjustment Due to FERC Order Under FPA Sec. 212
Customers taking service under this rate schedule are subject to
the Rate Adjustment Due to FERC Order under FPA sec. 212 specified in
section II.D of the GRSPs.
Schedule IS-04 Southern Intertie Rate
Section I. Availability
This schedule supersedes Schedule IS-02. It is available to
Transmission Customers taking Point-to-Point Transmission Service over
Federal Columbia River Transmission System (FCRTS) Southern Intertie
facilities. Terms and conditions of service are specified in the Open
Access Transmission Tariff or, for customers who executed Southern
Intertie agreements with BPA before October 1, 1996, will be as
provided in the customer's agreement with BPA. This schedule is
available also for transmission service of a similar nature that may be
ordered by the Federal Energy Regulatory Commission (FERC) pursuant to
sections 211 and 212 of the Federal Power Act (16 U.S.C. 824j and
824k). Service under this schedule is subject to BPA-TBL's General Rate
Schedule Provisions (GRSPs).
Section II. Rates
A. Long-Term Firm PTP Transmission Service
$1.176 per kilowatt per month
B. Short-Term Firm and Non-Firm PTP Transmission Service
For each reservation, the rates shall not exceed:
1. Monthly, Weekly, and Daily Firm and Non-Firm Service
a. Days 1 through 5--$0.054 per kilowatt per day
b. Day 6 and beyond--$0.040 per kilowatt per day
2. Hourly Firm and Non-Firm Service--3.39 mills per kilowatthour
Section III. Billing Factors
A. All Firm Service and Monthly, Weekly and Daily Non-Firm Service
The Billing Factor for each rate specified in sections II.A and
II.B for all service except Hourly Non-Firm Service shall be the
Reserved Capacity, which is the greater of:
1. the sum of the capacity reservations at the Point(s) of Receipt,
or
2. the sum of the capacity reservations at the Point(s) of
Delivery.
For Southern Intertie transmission agreements executed prior to
October 1,
[[Page 78099]]
1996, the Billing Factor shall be as specified in the agreement.
B. Hourly Non-Firm Service
The Billing Factor for the rate specified in section II.B.2 for
Hourly Non-Firm Service shall be the scheduled kilowatthours.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Customers taking service under this rate schedule are subject to
the ACS-04 Scheduling, System Control and Dispatch Service Rate and the
Reactive Supply and Voltage Control from Generation Sources Service
Rate. Other Ancillary Services that are required to support PTP
Transmission Service on the Southern Intertie are available under the
ACS rate schedule.
B. Failure To Comply Penalty
Customers taking service under this rate schedule are subject to
the Failure to Comply Penalty Charge specified in section II.B of the
GRSPs.
C. Interruption of Non-Firm PTP Transmission Service
If daily, weekly, or monthly Non-Firm PTP Transmission Service is
interrupted, the rates charged under section II.B.1. shall be prorated
over the total hours in the day to give credit for the hours of such
interruption.
D. Power Factor Penalty
Customers taking service under this rate schedule are subject to
the Power Factor Penalty Charge specified in section II.C of the GRSPs.
E. Reservation Fee
Customers who postpone the commencement of Long-Term Firm Point-To-
Point Transmission Service by reserving deferred service, or by
requesting an extension of their Service Commencement Date, will be
subject to the Reservation Fee specified in section II.E of the GRSPs.
F. Unauthorized Increase Charge
Customers who exceed their capacity reservations at any Point of
Receipt (POR) or Point of Delivery (POD) shall be subject to the
Unauthorized Increase Charge specified in section II.G in the GRSPs.
G. Direct Assignment Facilities
BPA-TBL shall collect the capital and related costs of a Direct
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not
limited to operations, maintenance, and general plant costs, also shall
be recovered from the Transmission Customer under an applicable rate
schedule.
H. Incremental Cost Rates
The rates specified in section II are applicable to service over
available transmission capacity. Customers requesting new or increased
firm service that would require BPA-TBL to construct new facilities or
upgrades to alleviate a capacity constraint may be subject to
incremental cost rates for such service if incremental cost is higher
than embedded cost. Incremental cost rates would be developed pursuant
to section 7(i) of the Northwest Power Act.
I. Rate Adjustment Due to FERC Order Under FPA Sec. 212
Customers taking service under this rate schedule are subject to
the Rate Adjustment Due to FERC Order under FPA sec. 212 specified in
section II.D of the GRSPs.
Schedule IM-04 Montana Intertie Rate
Section I. Availability
This schedule supersedes Schedule IM-02. It is available to
Transmission Customers taking Point-to-Point (PTP) Transmission Service
on BPA's share of Montana Intertie transmission capacity. Terms and
conditions of service are specified in the Open Access Transmission
Tariff. This schedule is available also for transmission service of a
similar nature that may be ordered by the Federal Energy Regulatory
Commission (FERC) pursuant to sections 211 and 212 of the Federal Power
Act (16 U.S.C. 824j and 824k). Service under this schedule is subject
to BPA-TBL's General Rate Schedule Provisions (GRSPs).
Section II. Rates
A. Long-Term Firm PTP Transmission Service
$1.258 per kilowatt per month
B. Short-Term Firm and Non-Firm PTP Transmission Service
For each reservation, the rates shall not exceed:
1. Monthly, Weekly, and Daily Short-Term Firm and Non-Firm Service
a. Days 1 through 5--$0.058 per kilowatt per day
b. Day 6 and beyond--$0.042 per kilowatt per day
2. Hourly Firm and Non-Firm Service--3.61 mills per kilowatthour
Section III. Billing Factors
A. All Firm Service and Monthly, Weekly and Daily Non-Firm Service
The Billing Factor for each rate specified in sections II.A and
II.B for all service except Hourly Non-Firm Service shall be the
Reserved Capacity, which is the greater of:
1. The sum of the capacity reservations at the Point(s) of Receipt,
or
2. The sum of the capacity reservations at the Point(s) of
Delivery.
B. Hourly Non-Firm Service
The Billing Factor for the rate specified in section II.B.2 for
Hourly Non-Firm Service shall be the scheduled kilowatthours.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Customers taking service under this rate schedule are subject to
the ACS-04 Scheduling, System Control and Dispatch Service Rate and the
Reactive Supply and Voltage Control from Generation Sources Service
Rate. Other Ancillary Services that are required to support PTP
Transmission Service on the Montana Intertie are available under the
ACS rate schedule.
B. Failure To Comply Penalty Charge
Customers taking service under this rate schedule are subject to
the Failure to Comply Penalty Charge specified in section II.B of the
GRSPs.
C. Interruption of Non-Firm PTP Transmission Service
If daily, weekly, or monthly Non-Firm PTP Transmission Service is
interrupted, the rates charged under section II.B.1. shall be prorated
over the total hours in the day to give credit for the hours of such
interruption.
D. Reservation Fee
Customers who postpone the commencement of Long-Term Firm Point-To-
Point Transmission Service by reserving deferred service, or by
requesting an extension of their Service Commencement Date, will be
subject to the Reservation Fee specified in section II.E of the GRSPs.
E. Unauthorized Increase Charge
Customers who exceed their capacity reservations at any Point of
Receipt (POR) or Point of Delivery (POD) shall be subject to the
Unauthorized Increase Charge specified in section II.G of the GRSPs.
[[Page 78100]]
F. Direct Assignment Facilities
BPA-TBL shall collect the capital and related costs of a Direct
Assignment Facility under the Advance Funding (AF) rate or the Use-of-
Facilities (UFT) rate. Other associated costs, including but not
limited to operations, maintenance, and general plant costs, also shall
be recovered from the Transmission Customer under an applicable rate
schedule.
G. Incremental Cost Rates
The rates specified in section II are applicable to service over
available transmission capacity. Customers requesting new or increased
firm service that would require BPA-TBL to construct new facilities or
upgrades to alleviate a capacity constraint may be subject to
incremental cost rates for such service if incremental cost is higher
than embedded cost. Incremental cost rates would be developed pursuant
to section 7(i) of the Northwest Power Act.
H. Rate Adjustment Due to FERC Order Under FPA Sec. 212
Customers taking service under this rate schedule are subject to
the Rate Adjustment Due to FERC Order under FPA sec.212 specified in
section II.D of the GRSPs.
Schedule UFT-04 Use-of-Facilities Transmission Rate
Section I. Availability
This schedule supersedes Schedule UFT-02 unless otherwise provided
in the agreement, and is available for firm transmission over specified
Federal Columbia River Transmission System (FCRTS) facilities. Service
under this schedule is subject to BPA-TBL's General Rate Schedule
Provisions (GRSPs).
Section II. Rate
The monthly charge per kilowatt of Transmission Demand/capacity
reservations specified in the agreement shall be one-twelfth of the
annual cost of capacity of the specified facilities divided by the sum
of Transmission Demands/capacity reservations (in kilowatts) using such
facilities. Such annual cost shall be determined in accordance with
section III.
Section III. Determination of Transmission Rate
A. From time to time, but not more often than once a year, BPA-TBL
shall determine the following data for the facilities which have been
constructed or otherwise acquired by BPA-TBL and which are used to
transmit electric power:
1. The annual cost of the specified FCRTS facilities, as determined
from the capital cost of such facilities and annual cost ratios
developed from the Federal Columbia River Power System financial
statement, including interest and amortization, operation and
maintenance, administrative and general, and general plant costs.
The annual cost per kilowatt of facilities listed in the agreement,
which are owned by another entity, and used by BPA-TBL for making
deliveries to the transferee, shall be determined from the costs
specified in the agreement between BPA-TBL and such other entity.
2. The yearly noncoincident peak demands of all users of such
facilities or other reasonable measurement of the facilities' peak use.
B. The monthly charge per kilowatt of billing demand shall be one-
twelfth of the sum of the annual cost of the FCRTS facilities used
divided by the sum of Transmission Demands/capacity reservations. The
annual cost per kilowatt of Transmission Demand/capacity reservation
for a facility constructed or otherwise acquired by BPA-TBL shall be
determined in accordance with the following formula:
A
D
Where:
A = The annual cost of such facility as determined in accordance with
A.1. above.
D = The sum of the yearly noncoincident demands on the facility as
determined in accordance with A.2. above.
1. For facilities used solely by one customer, BPA-TBL may charge a
monthly amount equal to the annual cost of such sole-use facilities,
determined in accordance with section III.A.1, divided by 12.
2. For facilities used by more than one customer, BPA-TBL may
charge a monthly amount equal to the annual cost of such facilities
prorated based on relative use of the facilities, divided by 12.
Section IV. Determination of Billing Factors
Unless otherwise stated in the agreement, the Billing Factor shall
be the largest of:
A. The Transmission Demand/capacity reservation in kilowatts
specified in the agreement;
B. The highest hourly Measured or Scheduled Demand for the month;
or
C. The Ratchet Demand.
Section V. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Ancillary services that are required to support UFT transmission
service are available under the ACS rate schedule.
B. Failure To Comply Penalty
Customers taking service under this rate schedule are subject to
the Failure to Comply Penalty Charge specified in section II.B of the
GRSPs.
C. Power Factor Penalty Charge
Customers taking service under this rate schedule are subject to
the Power Factor Penalty Charge specified in section II.C of the GRSPs.
Schedule AF-04 Advance Funding Rate
Section I. Availability
This schedule supersedes Schedule AF-02 and is available to
customers who execute an agreement that provides for BPA-TBL to collect
capital and related costs through advance funding or other financial
arrangement for specified BPA-owned Federal Columbia River Transmission
System (FCRTS) facilities used for:
A. Interconnection or integration of resources and loads to the
FCRTS;
B. Upgrades, replacements, or reinforcements of the FCRTS for
transmission service; or
C. Other transmission service arrangements, as determined by BPA-
TBL.
Service under this schedule is subject to BPA-TBL's General Rate
Schedule Provisions (GRSPs).
Section II. Rate
The charge is the sum of the actual capital and related costs for
specified FCRTS facilities, as provided in the agreement. Such actual
capital and related costs include, but are not limited to, costs of
design, materials, construction, overhead, spare parts, and all
incidental costs necessary to provide service as identified in the
agreement.
Section III. Payment
A. Advance Payment
Payment to BPA-TBL shall be specified in the agreement as either:
1. A lump sum advance payment;
2. Advance payments pursuant to a schedule of progress payments; or
3. Other payment arrangement, as determined by BPA-TBL.
Such advance payment or payments shall be based on an estimate of
the capital and related costs for the specified FCRTS facilities as
provided in the agreement.
[[Page 78101]]
B. Adjustment to Advance Payment
BPA-TBL shall determine the actual capital and related costs of the
specified FCRTS facilities as soon as practicable after the date of
commercial operation, as determined by BPA-TBL. The customer will
either receive a refund from BPA-TBL or be billed for additional
payment for the difference between the advance payment and the actual
capital and related costs.
Schedule TGT-04 Townsend-Garrison Transmission Rate
Section I. Availability
This schedule supersedes Schedule TGT-02 and is available to
Companies that are parties to the Montana Intertie Agreement (Contract
No. DE-MS79-81BP90210, as amended) which provides for firm transmission
over BPA-TBL's section (Garrison to Townsend) of the Montana Intertie.
Service under this schedule is subject to BPA-TBL's General Rate
Schedule Provisions (GRSPs).
Section II. Rate
The monthly charge shall be one-twelfth of the sum of the annual
charges listed below, as applicable and as specified in the agreements
for firm transmission. The Townsend-Garrison 500-kV lines and
associated terminal, line compensation, and communication facilities
are a separately identified portion of the Federal Transmission System.
Annual revenues plus credits for government use should equal annual
costs of the facilities, but in any given year there may be either a
surplus or a deficit. Such surpluses or deficits for any year shall be
accounted for in the computation of annual costs for succeeding years.
Revenue requirements for firm transmission use will be decreased by any
revenues received from nonfirm use and credits for all government use.
The general methodology for determining the firm rate is to divide the
revenue requirement by the total firm capacity requirements. Therefore,
the higher the total capacity requirements, the lower will be the unit
rate.
If the government provides firm transmission service in its section
of the Montana (Eastern) Intertie in exchange for firm transmission
service in a customer's section of the Montana Intertie, the payment by
the government for such transmission services provided by such customer
will be made in the form of a credit in the calculation of the Intertie
Charge for such customer. During an estimated 1- to 3-year period
following the commercial operation of the third generating unit at the
Colstrip Thermal Generating Plant at Colstrip, Montana, the capability
of the Federal Transmission System west of Garrison Substation may be
different from the long-term situation. It may not be possible to
complete the extension of the 500-kV portion of the Federal
Transmission System to Garrison by such commercial operation date. In
such event, the 500/230 kV transformer will be an essential extension
of the Townsend-Garrison Intertie facilities, and the annual costs of
such transformer will be included in the calculation of the Intertie
Charge.
However, starting 1 month after extension to Garrison of the 500-kV
portion of the Federal Transmission System, the annual costs of such
transformer will no longer be included in the calculation of the
Intertie Charge.
A. Nonfirm Transmission Charge
This charge will be filed as a separate rate schedule, the Eastern
Intertie (IE) rate, and revenues received thereunder will reduce the
amount of revenue to be collected under the Intertie Charge below.
B. Intertie Charge for Firm Transmission Service
[GRAPHIC] [TIFF OMITTED] TN20DE02.007
Section III. Definitions
A. TAC = Total Annual Costs of facilities associated with the
Townsend-Garrison 500-kV Transmission line including terminals, and
prior to extension of the 500-kV portion of the Federal Transmission
System to Garrison, the 500/230 kV transformer at Garrison. Such annual
costs are the total of: (1) Interest and amortization of associated
Federal investment and the appropriate allocation of general plant
costs; (2) operation and maintenance costs; (3) allowance for BPA's
general administrative costs which are appropriately allocable to such
facilities, and (4) payments made pursuant to section 7(m) of Public
Law 96-501 with respect to these facilities. Total Annual Costs shall
be adjusted to reflect reductions to unpaid total costs as a result of
any amounts received, under agreements for firm transmission service
over the Montana Intertie, by the government on account of any
reduction in Transmission Demand, termination or partial termination of
any such agreement or otherwise to compensate BPA for the unamortized
investment, annual cost, removal, salvage, or other cost related to
such facilities.
B. NFR = Nonfirm Revenues, which are equal to: (1) The product of
the Nonfirm Transmission Charge described in II(A) above, and the total
nonfirm energy transmitted over the Townsend-Garrison line segment
under such charge for such month; plus (2) the product of the Nonfirm
Transmission Charge and the total nonfirm energy transmitted in either
direction by the Government over the Townsend-Garrison line segment for
such month.
C. CR = Capacity Requirement of a customer on the Townsend-Garrison
500-kV transmission facilities as specified in its firm transmission
agreement.
D. TCR = Total Capacity Requirement on the Townsend-Garrison 500-kV
transmission facilities as calculated by adding (1) the sum of all
Capacity Requirements (CR) specified in transmission agreements
described in section I; and (2) the Government's firm capacity
requirement. The Government's firm capacity requirement shall be no
less than the total of the amounts, if any, specified in firm
transmission agreements for use of the Montana Intertie.
E. EC = Exchange Credit for each customer which is the product of:
(1) The ratio of investment in the Townsend-Broadview 500-kV
transmission line to the investment in the Townsend-Garrison 500-kV
transmission line; and (2) the capacity which the Government obtains in
the Townsend-Broadview 500-kV transmission line through exchange with
such customer. If no exchange is in effect with a customer, the value
of EC for such customer shall be zero.
Schedule IE-04 Eastern Intertie Rate
Section I. Availability
This schedule supersedes IE-02 and is available to Companies that
are parties to the Montana Intertie Agreement (Contract No. DE-MS79-
81BP90210, as amended), for nonfirm transmission service on the portion
of Eastern Intertie capacity above BPA-TBL's firm transmission rights.
Service
[[Page 78102]]
under this schedule is subject to BPA-TBL's General Rate Schedule
Provisions (GRSPs).
Section II. Rate
The rate shall not exceed 1.38 mills per kilowatthour.
Section III. Billing Factors
The Billing Factor shall be the scheduled kilowatthours, unless
otherwise specified in the agreement.
Section IV. Adjustments, Charges, and Other Rate Provisions
A. Ancillary Services
Ancillary services that may be required to support IE transmission
service are available under the ACS rate schedule.
B. Failure To Comply Penalty
Customers taking service under this rate schedule are subject to
the Failure to Comply Penalty specified in section II.B of the GRSPs.
Schedule ACS-04 Ancillary Services and Control Area Services Rate
Section I. Availability
This schedule supersedes Schedule ACS-02. It is available to all
Transmission Customers taking service under the Open Access
Transmission Tariff and other contractual arrangements. This schedule
is available also for transmission service of a similar nature that may
be ordered by the Federal Energy Regulatory Commission (FERC) pursuant
to sections 211 and 212 of the Federal Power Act (16 U.S.C. 824j and
824k). Service under this schedule is subject to BPA-TBL's General Rate
Schedule Provisions (GRSPs).
Ancillary Services are needed with transmission service to maintain
reliability within and among the Control Areas affected by the
transmission service. The Transmission Provider is required to provide,
and the Transmission Customer is required to purchase, the following
Ancillary Services: (a) Scheduling, System Control and Dispatch, and
(b) Reactive Supply and Voltage Control from Generation Sources.
The Transmission Provider is required to offer to provide the
following Ancillary Services only to the Transmission Customer serving
load within the Transmission Provider's Control Area: (a) Regulation
and Frequency Response and (b) Energy Imbalance. The Transmission
Customer serving load within the Transmission Provider's Control Area
is required to acquire these Ancillary Services, whether from the
Transmission Provider, from a third party, or by self-supply. The
Transmission Provider is required to offer to provide (a) Operating
Reserve--Spinning, and (b) Operating Reserve--Supplemental to the
Transmission Customer serving load with generation located in the
Transmission Provider's Control Area. The Transmission Customer serving
load with generation located in the Transmission Provider's Control
Area is required to acquire these Ancillary Services, whether from the
Transmission Provider, from a third party, or by self-supply. The
Transmission Customer may not decline the Transmission Provider's offer
of Ancillary Services unless it demonstrates that it has acquired the
Ancillary Services from another source. The Transmission Customer must
list in its Application which Ancillary Services it will purchase from
the Transmission Provider.
Ancillary Service rates available under this rate schedule are:
1. Scheduling, System Control, and Dispatch Service
2. Reactive Supply and Voltage Control from Generation Sources Service
3. Regulation and Frequency Response Service
4. Energy Imbalance Service
5. Operating Reserve--Spinning Reserve Service
6. Operating Reserve--Supplemental Reserve Service
Control Area Services are available to meet the Reliability
Obligations of a party with resources or loads in the BPA Control Area.
A party that is not satisfying all of its Reliability Obligations
through the purchase or self-provision of Ancillary Services must
purchase Control Area Services to meet its Reliability Obligations.
Control Area Services are also available to parties with resources or
loads in the BPA Control Area that have Reliability Obligations, but do
not have a transmission agreement with BPA. Reliability Obligations for
resources or loads in the BPA Control Area shall be determined
consistent with the applicable North American Electric Reliability
Council (NERC), Western Electricity Coordinating Council (WECC), and
Northwest Power Pool (NWPP) criteria.
Control Area Service rates available under this rate schedule are:
1. Regulation and Frequency Response Service
2. Generation Imbalance Service
3. Operating Reserve--Spinning Reserve Service
4. Operating Reserve--Supplemental Reserve Service
Section II. Ancillary Service Rates
A. Scheduling, System Control and Dispatch Service
The rates below apply to Transmission Customers taking Scheduling,
System Control and Dispatch Service from BPA-TBL. These rates apply to
both firm and non-firm transmission service. Transmission arrangements
on the Network, on the Southern Intertie, and on the Montana Intertie
are each charged separately for Scheduling, System Control and Dispatch
Service.
1. Rates
a. Long-Term Firm PTP Transmission Service and NT Service.--The
rate shall not exceed $0.166 per kilowatt per month.
b. Short-Term Firm and Non-Firm PTP Transmission Service.--For each
reservation, the rates shall not exceed:
(1) Monthly, Weekly, and Daily Firm and Non-Firm Service
(a) Days 1 through 5--$0.008 per kilowatt per day
(b) Day 6 and beyond--$0.005 per kilowatt per day
(2) Hourly Firm and Non-Firm Service--
The rate shall not exceed 0.48 mills per kilowatthour.
2. Billing Factors
a. Point-To-Point Transmission Service.--For Transmission Customers
taking Point-to-Point Transmission Service (PTP, IS, and IM rates), the
Billing Factor for each rate specified in section 1.a, 1.b(1), and for
Hourly Firm PTP Transmission Service specified in 1.b(2) shall be the
Reserved Capacity, which is the greater of:
1. the sum of the capacity reservations at the Point(s) of Receipt,
or
2. the sum of the capacity reservations at the Point(s) of
Delivery.
The Reserved Capacity for Firm PTP Transmission Service shall not
be adjusted for any Short-Distance Discounts or for any modifications
on a non-firm basis in determining the Scheduling, System Control and
Dispatch Service Billing Factor.
The Billing Factor for the rate specified in section 1.b(2) for
Hourly Non-Firm Service shall be the scheduled kilowatthours.
These Billing Factors apply to all PTP transmission service under
the Open Access Transmission Tariff regardless of whether the
Transmission Customer actually uses (schedules) the transmission.
b. Network Integration Transmission Service.--For Transmission
Customers taking Network Integration
[[Page 78103]]
Transmission Service, the Billing Factor for the rate specified in
section 1.a. shall equal the NT Base Charge Billing Factor determined
pursuant to section III.A of the Network Integration Rate Schedule (NT-
04).
Section II. Ancillary Service Rates
B. Reactive Supply and Voltage Control from Generation Sources Service
The rates below apply to Transmission Customers taking Reactive
Supply and Voltage Control from Generation Sources Service from BPA-
TBL. These rates apply to both firm and non-firm transmission service.
Transmission arrangements on the Network, on the Southern Intertie, and
on the Montana Intertie are each charged separately for Reactive Supply
and Voltage Control from Generation Sources Service.
1. Rates
a. Long-Term Firm PTP Transmission Service and NT Service.--The
rate shall not exceed $0.067 per kilowatt per month.
b. Short-Term Firm and Non-Firm PTP Transmission Service.--For each
reservation, the rates shall not exceed:
(1) Monthly, Weekly, and Daily Firm and Nonfirm Service
(a) Days 1 through 5--$0.003 per kilowatt per day
(b) Day 6 and beyond--$0.002 per kilowatt per day
(2) Hourly Firm and Non-Firm Service.--The rate shall not exceed
0.19 mills per kilowatthour.
2. Billing Factors
a. Point-To-Point Transmission Service.--For Transmission Customers
taking Point-to-Point Transmission Service (PTP, IS, and IM rates), the
Billing Factor for each rate specified in section 1.a, 1.b(1) and for
Hourly Firm PTP Transmission Service specified in 1.b(2) shall be the
Reserved Capacity, which is the greater of:
1. The sum of the capacity reservations at the Point(s) of Receipt,
or
2. The sum of the capacity reservations at the Point(s) of
Delivery.
The Reserved Capacity for Firm PTP Transmission Service shall not
be adjusted for any Short-Distance Discount or for any modifications on
a non-firm basis in determining the Reactive Supply and Voltage Control
from Generation Sources Service Billing Factor.
The Billing Factor for the rate specified in section 1.b(2) for
Hourly Non-Firm Service shall be the scheduled kilowatthours.
These Billing Factors apply to all PTP transmission service under
the Open Access Transmission Tariff regardless of whether the
Transmission Customer actually uses (schedules) the transmission.
b. Network Integration Transmission Service.--For Transmission
Customers taking Network Integration Transmission Service, the Billing
Factor for the rate specified in section 1.a. shall equal the NT Base
Charge Billing Factor determined pursuant to section III.A of the
Network Integration Rate Schedule (NT-04).
c. Adjustment for Self-Supply.--The Billing Factors in sections
2.a. and 2.b. above may be reduced as specified in the Transmission
Customer's Service Agreement to the extent the Transmission Customer
demonstrates to BPA-TBL's satisfaction that it can self-provide
Reactive Supply and Voltage Control from Generation Sources Service.
Section II. Ancillary Service Rates
C. Regulation and Frequency Response Service
The rate below for Regulation and Frequency Response Service
applies to Transmission Customers serving loads in the BPA Control
Area. Regulation and Frequency Response Service provides the generation
capability to follow the moment-to-moment variations of loads in the
BPA Control Area and maintain the power system frequency at 60 Hz in
conformance with NERC and WECC reliability standards.
1. Rate
The rate shall not exceed 0.30 mills per kilowatthour.
2. Billing Factor
The Billing Factor is the customer's total load in the BPA Control
Area, in kilowatthours.
Section II. Ancillary Service Rates
D. Energy Imbalance Service
The rates below apply to Transmission Customers taking Energy
Imbalance Service from BPA-TBL. Energy Imbalance Service is taken when
there is a difference between scheduled and actual energy delivered to
a load in the BPA Control Area during a schedule hour.
1. Rates
a. Imbalances Within Deviation Band 1.--Deviation Band 1 applies to
deviations that are less than or equal to: (i) +/-1.5% of the scheduled
amount of energy, or (ii) +/-2 MW, whichever is larger in absolute
value. BPA-TBL will maintain deviation accounts showing the net Energy
Imbalance (the sum of positive and negative deviations from schedule
for each hour) for Heavy Load Hour (HLH) and Light Load Hour (LLH)
periods. Return energy may be scheduled at any time during the month to
bring the deviation account balances to zero at the end of each month.
BPA-TBL will approve the hourly schedules of return energy. The
customer shall make the arrangements and submit the schedule for the
balancing transaction.
The following rates will be applied when a deviation balance
remains at the end of the month:
(i) When the monthly net energy (determined for HLH and LLH
periods) taken by the Transmission Customer is greater than the energy
scheduled, the charge is BPA's incremental cost based on the applicable
average HLH and average LLH incremental cost for the month.
(ii) When the monthly net energy (determined for HLH and LLH
periods) taken by the Transmission Customer is less than the energy
scheduled, the credit is BPA's incremental cost based on the applicable
average HLH and LLH incremental cost for the month.
b. Imbalances Within Deviation Band 2.--Deviation Band 2 applies to
the portion of the deviation (i) greater than +/-1.5% of the scheduled
amount of energy or +/-2 MW, whichever is larger in absolute value,
(ii) up to and including +/-7.5% of the scheduled amount of energy or
+/-10 MW, whichever is larger in absolute value.
(i) When energy taken by the Transmission Customer in a schedule
hour is greater than the energy scheduled, the charge is 110% of BPA's
incremental cost.
(ii) When energy taken by the Transmission Customer in a schedule
hour is less than the scheduled amount, the credit is 90% of BPA's
incremental cost.
c. Imbalances Within Deviation Band 3.--Deviation Band 3 applies to
the portion of the deviation (i) greater than +/-7.5% of the scheduled
amount of energy, or (ii) greater than +/-10 MW of the scheduled amount
of energy, whichever is larger in absolute value.
(I) When energy taken by the Transmission Customer in a schedule
hour is greater than the energy scheduled, the charge is 125% of BPA's
highest incremental cost that occurs during the that day. The highest
daily incremental cost shall be determined separately for HLH and LLH.
(ii) When energy taken by the Transmission Customer in a schedule
hour is less than the scheduled amount, the credit is 75% of BPA's
lowest incremental cost that occurs during that day. The lowest daily
incremental cost
[[Page 78104]]
shall be determined separately for HLH and LLH.
2. Other Rate Provisions
a. BPA Incremental Cost.--BPA's incremental cost will be based on
an hourly energy index in the PNW. If no adequate hourly index exists,
an alternative index will be used. The index to be used will be posted
on the OASIS at least 30 days prior to use for determining the BPA
incremental cost and will not be changed more often than once per year
unless BPA-TBL determines that the existing index is no longer a
reliable price index.
b. Spill Conditions.--For any day that the Federal System is in a
Spill Condition, no credit is given for negative deviations (actual
energy delivered is less than scheduled) for any hour of that day.
c. Intentional Deviation.--For any hour(s) that an imbalance is
determined by BPA-TBL to be an Intentional Deviation:
(1) No credit is given when energy taken is less than the scheduled
energy.
(2) When energy taken exceeds the scheduled energy, the charge is
the greater of: (i) 125% of BPA's highest incremental cost that occurs
during that day, or (ii) 100 mills per kilowatthour.
Section II. Ancillary Service Rates
E. Operating Reserve--Spinning Reserve Service
The rates below apply to Transmission Customers taking Operating
Reserve--Spinning Reserve Service from BPA-TBL and to generators in the
BPA Control Area for settlement of energy deliveries. Spinning Reserve
Service is needed to serve load immediately in the event of a system
contingency. For a Transmission Customer's load (located inside or
outside of the BPA Control Area) served by generation located in the
BPA Control Area, the Transmission Customer's Spinning Reserve
Requirement shall be determined consistent with applicable NERC, WECC
and NWPP standards.
1. Rates
a. The rate shall not exceed 8.39 mills per kilowatthour of the
Transmission Customer's Spinning Reserve Requirement.
b. For energy delivered, the generator shall, as directed by BPA-
TBL, either:
(i) Purchase the energy at the hourly market index price applicable
at the time of occurrence, or
(ii) Return the energy at the times specified by BPA-TBL.
2. Billing Factors
a. The Billing Factor for Spinning Reserve Service is determined in
accordance with applicable WECC and NWPP standards. Application of
current standards establish a minimum Spinning Reserve Requirement
equal to the sum of:
(i) Two and a half percent (2.5%) of the hydroelectric generation
dedicated to the Transmission Customer's firm load responsibility; and
(ii) Three and a half percent (3.5%) of non-hydroelectric
generation dedicated to the Transmission Customer's firm load
responsibility.
b. The Billing Factor for energy delivered when Spinning Reserve
Service is called upon is the energy delivered, in kilowatthours.
Section II. Ancillary Service Rates
F. Operating Reserve--Supplemental Reserve Service
The rates below apply to Transmission Customers taking Operating
Reserve--Supplemental Reserve Service from BPA-TBL and to generators in
the BPA Control Area for settlement of energy deliveries. Supplemental
Reserve Service is available within a short period of time to serve
load in the event of a system contingency. For a Transmission
Customer's load (located inside or outside the BPA Control Area) served
by generation located in the BPA Control Area, the Transmission
Customer's Supplemental Reserve Requirement shall be determined
consistent with applicable NERC, WECC and NWPP standards.
1. Rates
a. The rate shall not exceed 8.39 mills per kilowatthour of
Supplemental Reserve Requirement.
b. For energy delivered, the Transmission Customer (for
interruptible imports only) or the generator shall, as directed by BPA-
TBL, either:
(i) Purchase the energy at the hourly market index price applicable
at the time of occurrence, or
(ii) Return the energy at the times specified by BPA-TBL.
The Transmission Customer shall be responsible for the settlement
of delivered energy associated with interruptible imports (see section
2.a(iii)). The generator shall be responsible for the settlement of
delivered energy associated with generation in the BPA Control Area.
2. Billing Factors
a. The Billing Factor for Supplemental Reserve Service is
determined in accordance with applicable WECC and NWPP standards.
Application of current standards establish a minimum Supplemental
Reserve Requirement equal to the sum of:
(i) Two and one half percent (2.5%) of the hydroelectric generation
dedicated to the Transmission Customer's firm load responsibility, plus
(ii) Three and one half percent (3.5%) of non-hydroelectric
generation dedicated to the Transmission Customer's firm load
responsibility, plus
(iii) Any power scheduled into the BPA Control Area that can be
interrupted on ten (10) minutes' notice.
b. The Billing Factor for energy delivered when Supplemental
Reserve Service is called upon is the energy delivered, in
kilowatthours.
Section III. Control Area Service Rates
A. Regulation and Frequency Response Service
The rate below applies to all loads in the BPA Control Area that
are receiving Regulation and Frequency Response Service from the BPA
Control Area, and such Regulation and Frequency Response Service is not
provided for under a BPA-TBL transmission agreement. Regulation and
Frequency Response Service provides the generation capability to follow
the moment-to-moment variations of loads in the BPA Control Area and
maintain the power system frequency at 60 Hz in conformance with NERC
and WECC reliability standards.
1. Rate
The rate shall not exceed 0.30 mills per kilowatthour.
2. Billing Factor
The Billing Factor is the customer's total load in the BPA Control
Area, in kilowatthours.
Section III. Control Area Service Rates
B. Generation Imbalance Service
The rates below apply to generation resources in the BPA Control
Area if Generation Imbalance Service is provided for in an
interconnection agreement or other arrangement. Generation Imbalance
Service is taken when there is a difference between scheduled and
actual energy delivered from generation resources in the BPA Control
Area during a schedule hour.
1. Rates
a. Imbalances Within Deviation Band 1.--Deviation Band 1 applies to
deviations that are less than or equal to:
[[Page 78105]]
(I) +/- 1.5% of the scheduled amount of energy, or (ii) +/- 2 MW,
whichever is larger in absolute value. BPA-TBL will maintain deviation
accounts showing the net Generation Imbalance (the sum of positive and
negative deviations from schedule for each hour) for Heavy Load Hour
(HLH) and Light Load Hour (LLH) periods. Return energy may be scheduled
at any time during the month to bring the deviation account balances to
zero at the end of each month. BPA-TBL will approve the hourly
schedules of return energy. The customer shall make the arrangements
and submit the schedule for the balancing transaction.
The following rates will be applied when a deviation balance
remains at the end of the month:
(i) When the monthly net energy (determined for HLH and LLH
periods) delivered from a generation resource is less than the energy
scheduled, the charge is BPA's incremental cost based on the applicable
average HLH and average LLH incremental cost for the month.
(ii) When the monthly net energy (determined for HLH and LLH
periods) delivered from a generation resource is greater than the
energy scheduled, the credit is BPA's incremental cost based on the
applicable average HLH and LLH incremental cost for the month.
b. Imbalances Within Deviation Band 2.--Deviation Band 2 applies to
the portion of the deviation (I) greater than +/- 1.5% of the scheduled
amount of energy or +/-2MW, whichever is larger in absolute value, (ii)
up to and including +/-7.5% of the scheduled amount of energy or +/-10
MW, whichever is larger in absolute value.
(i) When energy delivered in a schedule hour from the generation
resource is less than the energy scheduled, the charge is 110% of BPA's
incremental cost.
(ii) When energy delivered from the generation resource is greater
than the scheduled amount, the credit is 90% of BPA's incremental cost.
c. Imbalances Within Deviation Band 3.--Deviation Band 3 applies to
the portion of the deviation (i) greater than +/-7.5% of the scheduled
amount of energy, or (ii) greater than +/-10 MW of the scheduled amount
of energy, whichever is larger in absolute value.
(i) When energy delivered in a schedule hour from the generation
resource is less than the energy scheduled, the charge is 125% of BPA's
highest incremental cost that occurs during that day. The highest daily
incremental cost shall be determined separately for HLH and LLH.
(ii) When energy delivered from the generation resource is greater
than the scheduled amount, the credit is 75% of BPA's lowest
incremental cost that occurs during that day. The lowest daily
incremental cost shall be determined separately for HLH and LLH.
2. Other Rate Provisions
a. BPA Incremental Cost.--BPA's incremental cost will be based on
an hourly energy index in the PNW. If no adequate hourly index exists,
an alternative index will be used. The index to be used will be posted
on the OASIS at least 30 days prior to use for determining the BPA
incremental cost and will not be changed more often than once per year
unless BPA-TBL determines that the existing index is no longer a
reliable price index.
b. Spill Conditions.--For any day that the Federal System is in a
Spill Condition, no credit is given for negative deviations (actual
generation greater than schedules) for any hour of that day.
c. Intentional Deviation.--No credit is given for negative
deviations (actual generation greater than schedules) for any hour(s)
that the imbalance is an Intentional Deviation (as determined by BPA-
TBL).
For positive deviations (actual generation less than schedules)
which are determined by BPA-TBL to be Intentional Deviations, the
charge is the greater of: (I) 125% of BPA's highest incremental cost
that occurs during that day, or (ii) 100 mills per kilowatthour.
d. Exemptions from Deviation Band 3.--The following resources are
not subject to Deviation Band 3:
(i) wind resources; and
(ii) new generation resources undergoing testing before commercial
operation for up to 90 days.
All such deviations greater than +/-1.5% or +/-2 MW will be charged
consistent with section 1.b., Imbalances Within Deviation Band 2.
Section III. Control Area Service Rates
C. Operating Reserve--Spinning Reserve Service
Operating Reserve--Spinning Reserve Service must be purchased by a
party with generation in the BPA Control Area that is receiving this
service from BPA-TBL, and such Spinning Reserve Service is not provided
for under a BPA-TBL transmission agreement. Service is being received
if there are no other qualifying resources providing this required
reserve service in conformance with NERC, WECC and NWPP standards.
1. Rates
a. The rate shall not exceed 8.39 mills per kilowatthour of
Spinning Reserve Requirement
b. For energy delivered, the customer shall, as directed by BPA-
TBL, either:
(i) Purchase the energy at the hourly market index price applicable
at the time of occurrence, or
(ii) Return the energy at the times specified by BPA-TBL.
2. Billing Factors
a. The Billing Factor for Spinning Reserve Service is determined in
accordance with applicable WECC and NWPP standards. Application of
current standards establish a minimum Spinning Reserve Requirement
equal to the sum of:
(i) Two and one half percent (2.5%) of the hydroelectric generation
dedicated to the customer's firm load responsibility, plus
(ii) Three and one half percent (3.5%) of non-hydroelectric
generation dedicated to the customer's firm load responsibility.
b. The Billing Factor for energy delivered when Spinning Reserve
Service is called upon is the energy delivered, in kilowatthours.
Section III. Control Area Service Rates
D. Operating Reserve--Supplemental Reserve Service
Operating Reserve--Supplemental Reserve Service must be purchased
by a party with generation in the BPA Control Area that is receiving
this service from BPA-TBL, and such Supplemental Reserve Service is not
provided for under a BPA-TBL transmission agreement. Service is being
received if there are no other qualifying resources providing this
required reserve service in conformance with NERC, WECC and NWPP
standards.
1. Rates
a. The rate shall not exceed 8.39 mills per kilowatthour of
Supplemental Reserve Requirement.
b. For energy delivered, the customer shall, as directed by BPA-TBL
either:
(i) Purchase the energy at the hourly market index price applicable
at the time of occurrence, or
(ii) Return the energy at the times specified by BPA-TBL.
2. Billing Factors
a. The Billing Factor for Spinning Reserve Service is determined in
accordance with applicable WECC and NWPP standards. Application of
current standards establish a minimum Spinning Reserve Requirement
equal to the sum of:
(i) Two and one half percent (2.5%) of the hydroelectric generation
dedicated to the customer's firm load Responsibility, plus
[[Page 78106]]
(ii) Three and one half percent (3.5%) of non-hydroelectric
generation dedicated to the customer's firm load responsibility, plus
(iii) Any power scheduled into the BPA Control Area that can be
interrupted on ten (10) minutes' notice.
b. The Billing Factor for energy delivered when Supplemental
Reserve Service is called upon is the energy delivered, in
kilowatthours.
Section IV. Adjustments, Charges, and Other Rate Provisions A. Rate
Adjustment Due to FERC Order Under FPA Sec. 212
Customers taking service under this rate schedule are subject to
the Rate Adjustment Due to FERC Order under FPA Sec. 212 specified in
section II.D of the GRSPs.
General Rate Schedule Provisions for Transmission and Ancillary Service
Rates
Section I. Generally Applicable Provisions
A. Approval of Rates
These 2004 rate schedules and General Rate Schedule Provisions
(GRSPs) for Transmission and Ancillary Service Rates shall become
effective upon interim approval or upon final confirmation and approval
by the Federal Energy Regulatory Commission (FERC). Bonneville Power
Administration (BPA) has requested that FERC make these rates and GRSPs
effective on October 1, 2003. All rate schedules shall remain in effect
until they are replaced or expire on their own terms.
B. General Provisions
These 2004 rate schedules and the GRSPs associated with these
schedules supersede BPA's 2002 rate schedules (which became effective
October 1, 2002) to the extent stated in the Availability section of
each rate schedule. These schedules and GRSPs shall be applicable to
all BPA-TBL contracts, including contracts executed both prior to, and
subsequent to, enactment of the Pacific Northwest Electric Power
Planning and Conservation Act (Northwest Power Act). All sales under
these rate schedules are subject to the following acts as amended: the
Bonneville Project Act (Pub. L. 75-329), 16 U.S.C. 832, the Pacific
Northwest Consumer Power Preference Act (Pub. L. 88-552), 16 U.S.C.
837, the Federal Columbia River Transmission System Act (Pub. L. 93-
454), 16 U.S.C. 838, the Northwest Power Act (Pub. L. 96-501), 16
U.S.C. 839, and the Energy Policy Act of 1992 (Pub. L. 102-486), 16
U.S.C. 824(i)--(l).
These 2004 rate schedules do not supersede any previously
established rate schedule that is required, by agreement, to remain in
effect.
If a provision in an executed agreement is in conflict with a
provision contained herein, the former shall prevail.
C. Notices
For the purpose of determining elapsed time from receipt of a
notice applicable to rate schedule and GRSP administration, a notice
shall be deemed to have been received at 0000 hours on the first
calendar day following actual receipt of the notice.
D. Billing and Payment
1. Billing Procedure
Within a reasonable time after the first day of each month, the
BPA-TBL shall submit an invoice to the Transmission Customer for the
charges for all services furnished under the Tariff and other
agreements during the preceding month. The invoice shall be paid by the
Transmission Customer within twenty (20) days of receipt. All payments
shall be made in immediately available funds payable to the BPA-TBL, or
by wire transfer to a bank named by the BPA-TBL.
2. Interest on Unpaid Balances
Interest on any unpaid amounts (including amounts placed in escrow)
shall be calculated in accordance with the methodology specified for
interest on refunds in the Commission's regulations at 18 CFR
35.19a(a)(2)(iii). Interest on delinquent amounts shall be calculated
from the due date of the bill to the date of payment. When payments are
made by mail, bills shall be considered as having been paid on the date
of receipt by the BPA-TBL.
3. Customer Default
In the event the Transmission Customer fails, for any reason other
than a billing dispute as described below, to make payment to the BPA-
TBL on or before the due date as described above, and such failure of
payment is not corrected within thirty (30) calendar days after the
BPA-TBL notifies the Transmission Customer to cure such failure, a
default by the Transmission Customer shall be deemed to exist. Upon the
occurrence of a default, the BPA-TBL may notify the Transmission
Customer that it plans to terminate services in sixty (60) days. The
Transmission Customer may use the dispute resolution procedures to
contest such termination. In the event of a billing dispute between the
BPA-TBL and the Transmission Customer, the BPA-TBL will continue to
provide service under the Service Agreement as long as the Transmission
Customer (I) continues to make all payments not in dispute, and (ii)
pays into an independent escrow account the portion of the invoice in
dispute, pending resolution of such dispute. If the Transmission
Customer fails to meet these two requirements for continuation of
service, then the BPA-TBL may provide notice to the Transmission
Customer of its intention to suspend service in sixty (60) days, in
accordance with Commission policy.
Section II. Adjustments, Charges, and Special Rate Provisions
A. Delivery Charge
Transmission Customers shall pay a Delivery Charge for service over
DSI Delivery facilities and Utility Delivery facilities.
1. Rates
a. DSI Delivery.--Use-of-Facilities (UFT-04) Rate, section III.B.1
or III.B.2
b. Utility Delivery.--$0.946 per kilowatt per month
2. Billing Factor
a. Utility Delivery.--The monthly Billing Factor for the Utility
Delivery rate in section 1.b. shall be the total load on the hour of
the Monthly Transmission Peak Load at the Points of Delivery specified
as Utility Delivery facilities.
The monthly Utility Delivery Billing Factor shall be adjusted for
customers who pay for Utility Delivery facilities under the Use-of-
Facilities (UFT) rate schedule. The kilowatt credit shall equal the
transmission service over the Delivery facilities used to calculate the
UFT charge. This adjustment shall not reduce the Utility Delivery
Charge billing factor below zero.
b. Metering Adjustment.--At those Points of Delivery that do not
have meters capable of determining the demand on the hour of the
Monthly Transmission Peak Load, the Billing Factor under section 2.a.
shall equal the highest hourly demand that occurs during the billing
month at the Point of Delivery multiplied by 0.79.
B. Failure To Comply Penalty Charge
If a party fails to comply with the BPA-TBL's curtailment,
redispatch, or load shedding orders, the party will be assessed the
Failure to Comply Penalty Charge.
Parties who are unable to comply with a curtailment, load shedding,
or redispatch order due to a force majeure
[[Page 78107]]
on their system will not be subject to this penalty provided that they
immediately notify the BPA-TBL of the situation upon occurrence of the
force majeure.
1. Rate
The rate shall be the highest of:
a. 100 mills per kilowatthour;
b. any costs incurred by the BPA-TBL in order to manage the
reliability of the FCRTS due to the failure to comply;
c. an hourly market price index plus 10%.
The hourly market price index will be the larger of the California
ISO Ex-Post Supplemental Energy Price or the Dow Jones Mid-Columbia
Firm Index Price for the hour(s) when the failure to comply occurred.
2. Billing Factors
The Billing Factor shall be the kilowatthours that were not
curtailed or redispatched in any of the following situations:
a. Failure to shed load when required as specified by the Load
Shedding provisions of the Open Access Transmission Tariff or any other
applicable agreement between the parties. This includes failure to
respond within the time period specified by the North American Electric
Reliability Council (NERC), Western Electricity Coordinating Council
(WECC), or Northwest Power Pool (NWPP) criteria.
b. Failure of a generator in the BPA Control Area or which directly
interconnects to the FCRTS to change generation levels when directed to
do so by the BPA-TBL. This includes failure to respond within the time
period specified by NERC, WECC, or NWPP criteria.
c. Failure to curtail a schedule in the time period specified by
NERC, WECC, or NWPP criteria when directed to do so by the BPA-TBL.
C. Power Factor Penalty Charge
1. Description of the Power Factor Penalty Charge
Any party that is interconnected with the Federal Columbia River
Transmission System (FCRTS) shall be charged for its reactive power
requirements as described in this section, unless otherwise specified
in an agreement existing prior to October 1, 1995.
Each point of interconnection or point of delivery shall be
monitored and billed independently for determining the party's total
reactive power requirements and all associated billing factors,
including the Reactive Deadband. If a party is taking transmission
service under multiple rate schedules, the party will pay for its
reactive power requirements as if it is taking delivery under only one
rate schedule.
2. Conditions for Application of the Power Factor Penalty Charge
a. Measured Data.--The Power Factor Penalty Charge will apply to
only the party's reactive power requirements for which measured data
exist.
b. Party's Generating Resource Connected to the FCRTS.--
Irrespective of the direction of real power flow, the Power Factor
Penalty Charge shall apply to points of interconnection where a party's
generating resource is directly connected to the FCRTS, unless the
party's generating resource is either:
i. a synchronous generator equipped with a voltage regulator, or
ii. equipped with reactive power control devices that comply with
BPA-TBL's applicable interconnection standards.
Such resource must actively support the voltage schedule at the
point of integration at all times when the resource is in service, as
determined by BPA Transmission Business Line, for this exemption to
apply. Generating resources that do not satisfy the above criteria
shall not be exempt from the Power Factor Penalty Charge.
c. Bi-directional Real Power Flow.--For points other than those
specified in section 2(b), the Power Factor Penalty Charge will not be
applied, and no new Ratchet Demand for reactive power will be
established, at a specific point if the metered real power (on an
hourly integrated basis) flows from the party's system to the FCRTS at
that point for as little as one hour during the billing period.
However, the party will still pay any previously incurred demand
ratchet charges. The direction of the real power flow will be
determined based on metered quantities, not on scheduled quantities.
d. Service by Transfer.--Points of delivery that are served by
transfer over another utility's transmission system will not be subject
to the Power Factor Penalty Charge unless there are significant BPA-TBL
Network facilities between the party's points of delivery and the
transferor's system.
e. Specific Points Exempt from the Power Factor Penalty Charge.--
The Power Factor Penalty Charge will not apply to the following points:
Nevada-Oregon Border (NOB)
Big Eddy 500 kV
Big Eddy 230 kV
John Day 500 kV
Malin 500 kV
Captain Jack 500 kV
Garrison 500 kV
Townsend 500 kV
f. Special Circumstances.--The party may submit requests to BPA
Transmission Business Line for consideration of unique circumstances.
BPA Transmission Business Line will evaluate the request and may make
arrangements with the party to address the special circumstances.
3. Rates
BPA-TBL will bill the party for reactive power at each point each
month as follows:
Reactive Demand
$0.28 per kVAr of lagging reactive demand in excess of the Reactive
Deadband during HLH in all months of the year.
$0.24 per kVAr of leading reactive demand in excess of the Reactive
Deadband during LLH in all months of the year.
No charge for leading reactive demand during HLH.
No charge for lagging reactive demand during LLH.
4. Billing Factors
a. Reactive Deadband.--The Reactive Deadband (measured in kVAr) is
used to determine the Reactive Billing Demand and Ratchet Demand for
the Power Factor Penalty Charge.
The Reactive Deadband for each billing period is the maximum hourly
integrated metered real power demand (measured in kW) at each point
during the billing period multiplied by 25 percent.
The Reactive Deadband for either HLH or LLH:
(I) is computed once per billing period (the same quantity is used
for both HLH and LLH),
(ii) does not vary during the billing period, and
(iii) is based on the maximum hourly integrated metered real power
demand during that billing period.
b. Reactive Billing Demand.--The party's Reactive Billing Demand
shall be calculated independently for lagging reactive power and
leading reactive power at each point for which a Power Factor Penalty
Charge is assessed.
All reactive demands shall be established in the particular HLH or
LLH at each point during which the party's maximum applicable reactive
demand is placed on BPA-TBL, regardless of the time of the real power
peak at each point.
All reactive demand at each point shall be established on a non-
coincidental basis, regardless of whether the party is billed for real
power or
[[Page 78108]]
transmission at such point on a coincidental or non-coincidental basis,
unless otherwise specified in the agreement between BPA-TBL and the
party, or coincidental billing is, in BPA-TBL's sole determination,
more practical for BPA-TBL.
There will be separate reactive demands for lagging (HLH) and
leading (LLH) demands. The party's Reactive Billing Demand for each
point for the billing month shall be the larger of:
(i) The largest measured reactive demand in excess of the Reactive
Deadband during the billing period, or
(ii) The Ratchet Demand for reactive power.
The Ratchet Demand for reactive power is equal to 100 percent of
the largest measured reactive demand in excess of the Reactive Deadband
during the preceding 11-month period. Each point shall have a separate
Ratchet Demand for lagging (HLH) and leading (LLH) reactive demand.
5. Adjustments for Reactive Losses
Measured data shall be adjusted for reactive losses, if applicable,
before determination of the Reactive Billing Demand.
D. Rate Adjustment Due to FERC Order Under FPA Sec. 212
If, after review by FERC, the NT, PTP, IS, or IM rate schedule, as
initially submitted to FERC, is modified to satisfy the standards of
section 212(i)(1)(B)(ii) of the Federal Power Act (16 U.S.C.
824k(i)(1)(B)(ii)) for FERC-ordered transmission service, then such
modifications shall automatically apply to the rate schedule for non-
section 212(i)(1)(B)(ii) transmission service. The modifications for
non-section 212(i)(1)(B)(ii) transmission service, as described above,
shall be effective, however, only prospectively from the date of the
final FERC order granting final approval of the rate schedule for FERC-
ordered transmission service pursuant to section 212(i)(1)(B)(ii). No
refunds shall be made or additional costs charged as a consequence of
this prospective modification for any non-section 212(i)(1)(B)(ii)
transmission service that occurred under the rate schedule prior to the
effective date of such prospective modification.
E. Reservation Fee
The Reservation Fee is a nonrefundable fee that shall be charged to
any PTP Transmission Service customer who postpones the commencement of
service by:
a. reserving ``deferred'' service for Long-Term Firm Point-to-Point
Transmission Service through an advanced reservation; or
b. requesting an extension of the Service Commencement Date
specified in the executed Service Agreement.
For requests beginning October 1, 2001, ``deferred'' service is any
advance reservation of Long-Term Firm Point-to-Point Transmission
Service with a Service Commencement Date greater than one (1) year from
the request date.
The Reservation Fee shall be specified in the executed agreement
for transmission service.
1. Fee
The Reservation Fee shall be a nonrefundable fee equal to one
month's charge for the requested Long-Term Firm Point-to-Point
Transmission Service for each year or fraction of a year for which the
customer chooses to defer service or extend the Service Commencement
Date. The Reservation Fee shall be paid annually until transmission
service begins or the reservation period ends, whichever occurs first.
2. Payment
a. For deferred service, the Reservation Fee for the first year
shall be paid in a lump sum within 30 days of the date the first year
service deferral begins. For subsequent years, the Reservation Fee
shall be paid in a lump sum within 30 days of the anniversary date of
deferred service. The Reservation Fee shall be assessed annually until
transmission service begins or the reservation period ends, whichever
occurs first.
b. For extensions of the Service Commencement Date, the Reservation
Fee for the first extension of the Service Commencement Date shall be
paid in a lump sum within 30 days of the original Service Commencement
Date. For subsequent extensions, the Reservation Fee shall be paid in a
lump sum within 30 days of the anniversary date of the original Service
Commencement Date.
F. Transmission and Ancillary Services Rate Discounts
BPA-TBL may offer discounted rates for transmission and ancillary
services available under the Open Access Transmission Tariff and to the
extent provided for in the PTP, IS, IM and ACS rate schedules.
Three principal requirements apply to discounts for transmission
service, and for Ancillary Services provided by the Transmission
Provider in conjunction with its provision of transmission service, as
follows:
a. Any offer of a discount made by the Transmission Provider must
be announced to all Eligible Customers solely by posting on the OASIS;
b. Any customer-initiated requests for discounts (including
requests for use by one's wholesale merchant or an affiliate's use)
must occur solely by posting on the OASIS; and
c. Once a discount is negotiated, details must be immediately
posted on the OASIS.
For any discount agreed upon for transmission service on a path,
from point(s) of receipt to point(s) of delivery, the Transmission
Provider must offer the same discounted transmission service rate for
the same time period to all Eligible Customers on all unconstrained
transmission paths that go to the same point(s) of delivery on the
Transmission System.
A discount agreed upon for an Ancillary Service must be offered for
the same period to all Eligible Customers on the Transmission
Provider's System.
G. Unauthorized Increase Charge (UIC)
Transmission Customers taking Point-to-Point Transmission Service
under the PTP, IS, and IM Rate Schedules shall be assessed the UIC when
they exceed their capacity reservations at any Point of Receipt (POR)
or Point of Delivery (POD). Transmission Customers taking Network
Integration Transmission Service under the NT Rate Schedule shall be
assessed the UIC if their Actual Customer-Served Load (CSL) is less
than their Declared CSL.
1. Rate
a. Point-To-Point Transmission Service (PTP, IS, and IM Rate
Schedules). (1) Long-Term Transmission Service.--The UIC rate shall be
two (2) times the PTP, IS, or IM rate per kilowatt per month for Long-
Term Firm PTP Transmission Service as specified in section II.A. of the
applicable rate schedule.
(2) Monthly, Weekly, and Daily Transmission Service.--The UIC rate
shall be two (2) times the rate per kilowatt for transmission service,
calculated by applying the rates per kilowatt per day specified in
section II.B.1 of the applicable rate schedule to the total number of
days of the transmission reservation.
The UIC rate shall not exceed two (2) times the PTP, IS, or IM rate
per kilowatt per month for Long-Term Firm Transmission Service.
(3) Hourly Transmission Service.--The UIC rate shall be two (2)
times the rate per kilowatt for transmission service, calculated by
applying the rate per kilowatthour specified in section II.B.2 of the
applicable rate schedule to
[[Page 78109]]
the total number of hours of the transmission reservation.
b. Network Integration Transmission Service (NT Rate Schedule).--
$2.056 per kilowatt per month
2. Billing Factors
a. Point-To-Point Transmission Service (PTP, IS, and IM Rate
Schedules.--For each hour of the monthly billing period, BPA-TBL shall
determine the amount by which the Transmission Customer exceeds its
capacity reservation at each POD and POR, to the extent practicable.
BPA-TBL shall use hourly measurements based on a 10-minute moving
average to calculate actual demands at PODs associated with loads that
are one-way dynamically scheduled and at PORs associated with resources
that are one-way dynamically scheduled. To calculate actual demands at
PODs and PORs that are associated with two-way dynamic schedules, BPA-
TBL shall use instantaneous peak demands for each hour. Actual demands
at all other PODs and PORs will be based on 60-minute integrated
demands or transmission schedules.
For each hour, BPA-TBL will sum these amounts that exceed capacity
reservations: (1) for all PODs, and (2) for all PORs. The Billing
Factor for the monthly billing period shall be the greater of the
highest one-hour POD sum or highest one-hour POR sum.
b. Network Integration Transmission Service (NT Rate Schedule).--In
each billing month on the hour of the Monthly Transmission Peak Load,
the Billing Factor shall equal the Declared CSL minus the Actual CSL.
3. UIC Relief
Under appropriate circumstances, BPA-TBL may waive or reduce the
UIC to a Transmission Customer on a non-discriminatory basis. A
Transmission Customer seeking a reduction or waiver must demonstrate
good cause for relief, including a demonstration that:
1. The event which resulted in the UIC
(a) was the result of an equipment failure or outage that could not
reasonably have been foreseen by the customer; and
(b) did not result in harm to BPA-TBL's transmission system or
transmission services, or to any other Transmission Customer; or
2. The event which resulted in the UIC
(a) was inadvertent;
(b) could not have been avoided by the exercise of reasonable care;
(c) did not result in harm to BPA-TBL's transmission system or
transmission services, or to any other Transmission Customer; and
(d) was not part of a recurring pattern of conduct by the
Transmission Customer.
If a waiver or reduction is granted to a Transmission Customer,
notice of such waiver or reduction will be posted on the BPA-TBL's
OASIS.
If the Transmission Customer is subject to a UIC in a month, but
has not received notice from the BPA-TBL of such UIC by billing or
otherwise, and the Transmission Customer is also subject to UIC(s) in
following month(s) due to the lack of notice, then BPA-TBL may bill the
Transmission Customer for the highest UIC in the series. The UIC for
all other months (including the first month(s) if it does not have the
highest UIC) in such a series will be waived.
H. GTA Delivery Charge
Customers who purchase Federal power that is delivered over non-
Federal low voltage transmission facilities shall pay a GTA Delivery
Charge. The GTA Delivery Charge is a BPA Power Business Line charge for
low voltage delivery service of Federal power provided under General
Transfer Agreements (GTAs) and other non-Federal transmission service
agreements.
1. Rate
$0.946 per kilowatt per month
2. Billing Factor
The monthly Billing Factor for the GTA Delivery rate shall be the
total amount of Federal power delivered on the hour of the Monthly
Transmission Peak Load at the low voltage Points of Delivery provided
for in GTA and other non-Federal transmission service agreements.
At those Points of Delivery that do not have meters capable of
determining the demand on the hour of the Monthly Transmission Peak
Load, the Billing Factor shall equal the highest hourly demand that
occurs during the billing month at the Point of Delivery multiplied by
0.79.
Section III. Definitions
1. Ancillary Services
Ancillary Services are those services that are necessary to support
the transmission of capacity and energy from resources to loads while
maintaining reliable operation of BPA-TBL's Transmission System in
accordance with Good Utility Practice. Ancillary Services include:
Scheduling, System Control and Dispatch; Reactive Supply and Voltage
Control from Generation Sources; Regulation and Frequency Response;
Energy Imbalance; Operating Reserve--Spinning; and Operating Reserve--
Supplemental. Ancillary Services are available under the ACS rate
schedule.
2. Billing Factor
The Billing Factor is the quantity to which the charge specified in
the rate schedule is applied. When the rate schedule includes charges
for several products, there may be a Billing Factor for each product.
3. Control Area
A 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:
1. Match, at all times, the power output of the generators within
the electric power system(s) and capacity and energy purchased from
entities outside the electric power system(s), with the load within the
electric power system(s);
2. Maintain scheduled interchange with other Control Areas, within
the limits of Good Utility Practice;
3. Maintain the frequency of the electric power system(s) within
reasonable limits in accordance with Good Utility Practice; and
4. Provide sufficient generating capacity to maintain operating
reserves in accordance with Good Utility Practice.
4. Control Area Services
Control Area Services are available to meet the Reliability
Obligations of a party with resources or loads in the BPA Control Area.
A party that is not satisfying all of its Reliability Obligations
through the purchase or self-provision of Ancillary Services may
purchase Control Area Services to meet its Reliability Obligations.
Control Area Services are also available to parties with resources or
loads in the BPA Control Area that have Reliability Obligations, but do
not have a transmission agreement with BPA-TBL. Reliability Obligations
for resources or loads in the BPA Control Area are determined by
applying the North American Electric Reliability Council (NERC),
Western Electricity Coordinating Council (WECC), and the Northwest
Power Pool (NWPP) reliability criteria. Control Area Services, include,
without limitation:
a. Regulation and Frequency Response Service
b. Generation Imbalance Service
c. Operating Reserve--Spinning Reserve Service
[[Page 78110]]
d. Operating Reserve--Supplemental Reserve Service
e. Other Control Area services.
5. Daily Service
Daily Service is Short-Term Firm and Non-Firm PTP Transmission
Service that starts at 00:00 of any date and stops at 00:00 at least
one (1) day later, but less than or equal to six (6) days later.
6. Direct Assignment Facilities
Facilities or portions of facilities that are constructed by the
BPA-TBL for the sole use/benefit of a particular Transmission Customer
requesting service under the Open Access Transmission Tariff, the costs
of which may be directly assigned to the Transmission Customer in
accordance with applicable Federal Energy Regulatory Commission policy.
Direct Assignment Facilities shall be specified in the service
agreement that governs service to the Transmission Customer.
7. Direct Service Industry (DSI) Delivery
The DSI Delivery segment is the segment of the FCRTS that provides
service to DSI customers at voltages of 34.5 kV and below.
8. Dynamic Schedule
A Dynamic Schedule is a telemeter reading or value which is updated
in real time and which is used as a schedule in the Automatic
Generation Control (AGC) and Area Control Error (ACE) equation of the
BPA-TBL and the integrated value of which is treated as a schedule for
interchange accounting purposes. One-way Dynamic Schedules are commonly
used for scheduling remote generation or remote load to or from another
Control Area. Two-way Dynamic Schedules are commonly used to provide
supplemental regulation or operating reserve support from one entity to
another, usually between Control Areas. The Receiving Party sends the
Delivering Party a requested Dynamic Schedule (the first part of the
two-way schedule). The Delivering Party then responds with the official
Dynamic Schedule of what actually is delivered to the Receiving Party
(the second part of the two-way schedule).
9. Dynamic Transfer
Dynamic Transfer is the provision of real-time monitoring,
telemetering, computer software, hardware, communications, engineering,
transmission capacity and energy accounting (including inadvertent
interchange), and administration, including transmission scheduling,
required to electronically move all or a portion of the real energy
services associated with a generator or load out of one Control Area
into another Control Area.
10. Eastern Intertie
The Eastern Intertie is the segment of the Federal Columbia River
Transmission System (FCRTS) for which the transmission facilities
consist of the Townsend-Garrison double-circuit 500 kV transmission
line segment, including related terminals at Garrison.
11. Energy Imbalance Service
Energy Imbalance Service is provided when a difference occurs
between the scheduled and the actual delivery of energy to a load
located within a Control Area over a single hour. The BPA-TBL must
offer this service when the transmission service is used to serve load
within its Control Area. The Transmission Customer must either purchase
this service from the BPA-TBL or make alternative comparable
arrangements specified in the Transmission Customer's Service Agreement
to satisfy its Energy Imbalance Service obligation.
12. Federal Columbia River Transmission System
The Federal Columbia River Transmission System (FCRTS) is the
transmission facilities of the Federal Columbia River Power System,
which include all transmission facilities owned by the government and
operated by BPA, and other facilities over which BPA has obtained
transmission rights.
13. Federal System
The Federal System is the generating facilities of the Federal
Columbia River Power System, including the Federal generating
facilities for which BPA is designated as marketing agent; the Federal
facilities under the jurisdiction of BPA; and any other facilities:
a. from which BPA receives all or a portion of the generating
capability (other than station service) for use in meeting BPA's loads
to the extent BPA has the right to receive such capability. ``BPA's
loads'' do not include any of the loads of any BPA customer that are
served by a non-Federal generating resource purchased or owned directly
by such customer which may be scheduled by BPA;
b. which BPA may use under contract or license; or
c. to the extent of the rights acquired by BPA pursuant to the 1961
U.S.-Canada Treaty relating to the cooperative development of water
resources of the Columbia River Basin.
14. Generation Imbalance
Generation Imbalance is the difference between the hourly scheduled
amount and actual delivered amount of energy from a generation resource
in the BPA Control Area.
15. Generation Imbalance Service
Generation Imbalance Service is taken when there is a difference
between scheduled and actual energy delivered from generation resources
in the BPA Control Area during a schedule hour.
16. Heavy Load Hours (HLH)
Heavy Load Hours (HLH) are all those hours in the peak period hour
ending 7 a.m. to the hour ending 10 p.m., Monday through Saturday,
Pacific Prevailing Time (Pacific Standard Time or Pacific Daylight
Time, as applicable). There are no exceptions to this definition; that
is, it does not matter whether the day is a normal working day or a
holiday.
17. Hourly Firm Point-To-Point (PTP) Transmission Service
Hourly Firm Point-To-Point (PTP) Service, or Hourly Firm Service,
is firm transmission service under Part II of the Open Access
Transmission Tariff in hourly increments.
18. Hourly Nonfirm Service
Hourly Nonfirm Service is nonfirm transmission service under Part
II of the Open Access Transmission Tariff in hourly increments.
19. Integrated Demand
Integrated Demand is the quantity derived by mathematically
``integrating'' kilowatthour deliveries over a 60-minute period. For
one-way dynamic schedules, demand is integrated on a rolling ten-minute
basis.
20. Intentional Deviation
BPA, in its sole determination, may find that an Intentional
Deviation exists if:
(a) A deviation is persistent during multiple consecutive hours or
at specific times of the day;
(b) A pattern of under-delivery or over-use of energy occurs; or
(c) Persistent over-generation or under-use during Light Load
Hours, particularly when the customer does not respond by adjusting
schedules for future days to correct these patterns.
21. Light Load Hours (LLH)
Light Load Hours (LLH) are all those hours in the offpeak period
hour ending 11 p.m. to hour ending 6 a.m., Monday through Saturday and
all hours Sunday, Pacific Prevailing Time (Pacific
[[Page 78111]]
Standard Time or Pacific Daylight Time, as applicable).
22. Long-Term Firm Point-To-Point (PTP) Transmission Service
Long-Term Firm Point-to-Point Transmission Service is Firm Point-
To-Point Transmission Service under Part II of the Open Access
Transmission Tariff with a term of one year or more.
23. Main Grid
As used in the FPT rate schedule, the Main Grid is that portion of
the Network facilities with an operating voltage of 230 kV or more.
24. Main Grid Distance
As used in the FPT rate schedules, Main Grid Distance is the
distance in airline miles on the Main Grid between the Point of
Integration (POI) and the Point of Delivery (POD), multiplied by 1.15.
25. Main Grid Interconnection Terminal
As used in the FPT rate schedules, Main Grid Interconnection
Terminal refers to Main Grid terminal facilities that interconnect the
FCRTS with non-BPA facilities.
26. Main Grid Miscellaneous Facilities
As used in the FPT rate schedules, Main Grid Miscellaneous
Facilities refers to switching, transformation, and other facilities of
the Main Grid not included in other components.
27. Main Grid Terminal
As used in the FPT rate schedules, Main Grid Terminal refers to the
Main Grid terminal facilities located at the sending and/or receiving
end of a line, exclusive of the Interconnection terminals.
28. Measured Demand
The Measured Demand is that portion of the customer's Metered or
Scheduled Demand for transmission service from BPA-TBL under the
applicable transmission rate schedule. If transmission service to a
point of delivery, or from a point of receipt, is provided under more
than one rate schedule, the portion of the measured quantities assigned
to any rate schedule shall be as specified by contract. The portion of
the total Measured Demand so assigned shall be the Measured Demand for
transmission service for each transmission rate schedule.
29. Metered Demand
Except for dynamic schedules, the Metered Demand in kilowatts shall
be the largest of the 60-minute clock-hour Integrated Demands at which
electric energy is delivered (received) for a transmission customer:
a. At each point of delivery (receipt) for which the Metered Demand
is the basis for the determination of the Measured Demand;
b. During each time period specified in the applicable rate
schedule; and
c. During any billing period.
Such largest Integrated Demand shall be determined from
measurements made in accord with the provisions of the applicable
contract and these GRSPs. This amount shall be adjusted as provided
herein and in the applicable agreement between BPA-TBL and the
customer.
For one-way Dynamic Schedules, the Metered Demand in kilowatts
shall be the largest 10 minute moving average of the load (generation)
at the point of delivery (receipt). The 10-minute moving average shall
be assigned to the hour in which the 10 minute period ends. For two-way
Dynamic Schedules, the Metered Demand in kilowatts shall be the largest
instantaneous value of the Dynamic Schedule during the hour.
30. Montana Intertie
The Montana Intertie is the double-circuit 500 kV transmission line
and associated substation facilities from Broadview Substation to
Garrison Substation.
31. Monthly Firm Service
Monthly Firm Service is Short-Term Firm PTP Transmission Service
that starts at 00:00 of any date and stops at 00:00 at least 28 days
later, but less than or equal to 364 days later.
32. Monthly Non-Firm Service
Monthly Non-Firm Service is Non-Firm PTP Transmission Service that
starts at 00:00 of any date and stops at 00:00 at least 28 days later,
but less than or equal to 31 days later.
33. Monthly Transmission Peak Load
Monthly Transmission Peak Load is the peak loading on the Federal
transmission system during any hour of the designated billing month,
determined by the largest hourly integrated demand produced from the
sum of Federal and non-Federal generating plants in BPA's Control Area
and metered flow into BPA's Control Area.
34. Network (or Integrated Network)
The Network is the segment of the Federal Columbia River
Transmission System (FCRTS) for which the transmission facilities
provide the bulk of transmission of electric power within the Pacific
Northwest.
35. Network Integration Transmission (NT) Service
Network Integration Transmission (NT) Service is the transmission
service provided under Part III of the Open Access Transmission Tariff.
36. Network Load
Network Load is the load that a Network Customer designates for
Network Integration Transmission Service under Part III of the Open
Access Transmission Tariff. The Network Customer's Network Load shall
include all load served by the output of any Network Resources
designated by the Network Customer. A Network Customer may elect to
designate less than its total load as Network Load but may not
designate only part of the load at a discrete Point of Delivery. Where
an Eligible Customer has elected not to designate a particular load at
discrete Points of Delivery as Network Load, the Eligible Customer is
responsible for making separate arrangements under Part II of the
Tariff for any Point-to-Point Transmission Service that may be
necessary for such non-designated load.
37. Network Upgrades
Network Upgrades are modifications or additions to transmission-
related facilities that are integrated with and support the BPA-TBL's
overall Transmission System for the general benefit of all users of
such Transmission System.
38. Non-Firm Point-To-Point (PTP) Transmission Service
Non-Firm Point-To-Point Transmission Service is Point-To-Point
Transmission Service under the Open Access Transmission Tariff that is
reserved and scheduled on an as-available basis and is subject to
Curtailment or Interruption as set forth in Section 14.7 under Part II
of the Tariff. Non-Firm PTP Transmission Service is available on a
stand-alone basis for periods ranging from one hour to one month.
39. Operating Reserve--Spinning Reserve Service
Operating Reserve--Spinning Reserve Service is needed to serve load
immediately in the event of a system contingency. Spinning Reserve
Service may be provided by generating units that are on-line and loaded
at less than maximum output. The BPA-TBL must offer this service when
the transmission service is provided to load served by generation
located in the BPA Control Area. The Transmission or Control Area
Service Customer must either purchase this service from the BPA-TBL or
make
[[Page 78112]]
alternative comparable arrangements to satisfy its Spinning Reserve
Service obligation. The Transmission or Control Area Service Customer's
obligation is determined consistent with North American Electric
Reliability Council (NERC), Western Systems Coordinating Council (WECC)
and Northwest Power Pool (NWPP) criteria.
40. Operating Reserve--Supplemental Reserve Service
Operating Reserve--Supplemental Reserve Service is needed to serve
load in the event of a system contingency; however, it is not available
immediately to serve load but rather within a short period of time.
Supplemental Reserve Service may be provided by generating units that
are on-line but unloaded, by quick-start generation or by interruptible
load. The BPA-TBL must offer this service when the transmission service
is provided to load served by generation located in the BPA Control
Area. The Transmission or Control Area Service Customer must either
purchase this service from the BPA-TBL or make alternative comparable
arrangements to satisfy its Supplemental Reserve Service obligation.
The Transmission Customer's obligation is determined consistent with
North American Electric Reliability Council (NERC), Western Electricity
Coordinating Council (WECC) and Northwest Power Pool criteria.
41. Operating Reserve Requirement
Operating Reserve Requirement is a party's total reserve obligation
to the BPA Control Area. A party is responsible for purchasing or
otherwise providing Operating Reserves associated with its transactions
which impose a reserve obligation on the BPA Control Area. Operating
Reserve Requirement is composed of two parts: regulating reserve
obligation and contingency reserve obligation.
A party's regulating reserve obligation is met by purchasing
Regulation and Frequency Response Service. The contingency reserve
obligation is satisfied by purchasing or otherwise providing Operating
Reserve--Spinning Reserve Service and Operating Reserve--Supplemental
Reserve Service.
The specific amounts required are determined consistent with North
American Electric Reliability Council (NERC) Policies, the Northwest
Power Pool (NWPP) Operating Manual, ``Contingency Reserve Sharing
Procedure,'' and the Western Electricity Coordinating Council (WECC)
``Minimum Operating Reliability Criteria'' (MORC).
42. Point(s) of Delivery (POD)
Point(s) on the BPA-TBL's Transmission System, or transfer points
on other utility systems pursuant to section 36 of the Open Access
Transmission Tariff (Tariff), where capacity and energy transmitted by
the BPA-TBL will be made available to the Receiving Party under Parts
II and III of the Tariff or to the Transmission Customer under other
BPA transmission service agreements. The Point(s) of Delivery shall be
specified in the Service Agreement for Long-Term Firm Point-to-Point
Service, Network Integration Transmission Service, and other BPA-TBL
transmission services.
43. Point of Integration (POI)
A Point of Integration is the contractual interconnection point
where power is received from the customer. Typically, a point of
integration is located at a resource site, but it could be located at
some other interconnection point.
44. Point of Interconnection (POI)
A Point of Interconnection is a point where the facilities of two
entities are interconnected. This term has the same meaning as ``Point
of Integration'' and ``Point of Receipt'' in certain pre-Open Access
Transmission Tariff service agreements.
45. Point(s) of Receipt (POR)
Point(s) of Receipt are the point(s) of interconnection on the BPA-
TBL's Transmission System where capacity and energy will be made
available to the BPA-TBL by the Delivering Party under Parts II and III
of the Open Access Transmission Tariff. The Point(s) of Receipt shall
be specified in the Service Agreement for Long-Term Firm Point-to-Point
Service, Network Integration Transmission Service, and other BPA-TBL
transmission services.
46. Ratchet Demand
The Ratchet Demand in kilowatts or kilovars is the maximum demand
established during a specified period of time either during, or prior
to, the current billing period. The Ratchet Demand shall be the maximum
demand established during the previous 11 billing months. If a
Transmission Demand has been decreased pursuant to the terms of the
transmission agreement during the previous 11 billing months, such
decrease will be reflected in determining the Ratchet Demand. The
Ratchet Demand for reactive power is defined in the Power Factor
Penalty Charge at section II.D of these GRSPs.
47. Reactive Power
Reactive Power is the out-of-phase component of the total volt-
amperes in an electric circuit. Reactive Power has two components:
reactive demand (expressed in kilovars or kVAr) and reactive energy
(expressed in kilovarhours or kVArh).
48. Reactive Supply and Voltage Control from Generation Sources Service
Reactive Supply and Voltage Control from Generation Sources Service
is required to maintain voltage levels on the BPA-TBL's transmission
facilities within acceptable limits. In order to maintain transmission
voltages on the BPA-TBL's transmission facilities within acceptable
limits, generation facilities (in the Control Area where the BPA-TBL's
transmission facilities are located) are operated to produce (or
absorb) reactive power. Thus, Reactive Supply and Voltage Control from
Generation Sources Service must be provided for each transaction on the
BPA-TBL's transmission facilities. The amount of Reactive Supply and
Voltage Control from Generation Sources Service that must be supplied
with respect to the Transmission Customer's transaction will be
determined based on the reactive power support necessary to maintain
transmission voltages within limits that are generally accepted in the
region and consistently adhered to by the BPA-TBL. The Transmission
Customer must purchase this service from the BPA-TBL.
49. Regulation and Frequency Response Service
Regulation and Frequency Response Service is necessary to provide
for the continuous balancing of resources (generation and interchange)
with load and for maintaining scheduled Interconnection frequency at
sixty cycles per second (60 Hz). Regulation and Frequency Response
Service is accomplished by committing on-line generation whose output
is raised or lowered (predominantly through the use of automatic
generating control equipment) as necessary to follow the moment-by-
moment changes in load. The obligation to maintain this balance between
resources and load lies with the BPA-TBL. The BPA-TBL must offer this
service when the transmission service is used to serve load within its
Control Area. The Transmission Customer must either purchase this
service from the BPA-TBL or make alternative comparable arrangements to
satisfy its Regulation and Frequency Response Service obligation.
[[Page 78113]]
50. Reliability Obligations
Reliability Obligations are the obligations that a party with
resources or loads in the BPA Control Area must provide in order to
meet minimum reliability standards. Reliability Obligations shall be
determined consistent with applicable North American Electric
Reliability Council (NERC), Western Electricity Coordinating Council
(WECC), and Northwest Power Pool (NWPP) standards. BPA-TBL offers
Ancillary Services and Control Area Services to allow resources or
loads to meet their Reliability Obligations.
51. Capacity Reserved
The maximum amount of capacity and energy that BPA-TBL agrees to
transmit for the Transmission Customer over the BPA-TBL's Transmission
System between the Point(s) of Receipt and the Point(s) of Delivery
under Part II of the Open Access Transmission Tariff. Reserved Capacity
shall be expressed in terms of whole megawatts on a sixty (60) minute
interval (commencing on the clock hour) basis. In cases where Dynamic
Schedules are involved, the Reserved Capacity must be set at a level to
accommodate (a) a demand equal to the largest ten-minute (10) moving
average of the load or generation expected to occur during the contract
period for one-way Dynamic Schedules used to transfer generation or
load from one Control Area to another Control Area; or (b) a demand
equal to the instantaneous peak demand, for each direction, of the
supplemental Control Area service request expected to occur during the
contract period for two-way Dynamic Transfers, used to provide
supplemental Control Area services. The supplemental Control Area
service response shall always be the lesser of the Control Area service
request or the Reserved Capacity associated with the supplemental
Control Area service.
52. Scheduled Demand
Scheduled Demand is the hourly demand at which electric energy is
scheduled for transmission on the FCRTS.
53. Scheduling, System Control and Dispatch Service
Scheduling, System Control and Dispatch Service is required to
schedule the movement of power through, out of, within, or into a
Control Area. This service can be provided only by the operator of the
Control Area in which the transmission facilities used for transmission
service are located. The Transmission Customer must purchase this
service from the BPA-TBL.
54. Secondary System
As used in the FPT rate schedules, Secondary System is that portion
of the Network facilities with an operating voltage between 69 kV to
less than 230 kV.
55. Secondary System Distance
As used in the FPT rate schedules, Secondary System Distance is the
number of circuit miles of Secondary System transmission lines between
the secondary Point of Integration and either the Main Grid or the
secondary Point of Delivery (POD), or between the Main Grid and the
secondary POD.
56. Secondary System Interconnection Terminal
As used in the FPT rate schedules, Secondary System Interconnection
Terminal refers to the terminal facilities on the Secondary System that
interconnect the FCRTS with non-BPA-TBL facilities.
57. Secondary System Intermediate Terminal
As used in the FPT rate schedules, Secondary System Intermediate
Terminal refers to the first and final terminal facilities in the
Secondary System transmission path, exclusive of the Secondary System
Interconnection terminals.
58. Secondary Transformation
As used in the FPT rate schedules, Secondary Transformation refers
to transformation from Main Grid to Secondary System facilities.
59. Short-Term Firm Point-To-Point (PTP) Transmission Service
Short-Term Firm Point-To-Point Transmission Service is Firm Point-
To-Point Transmission Service under Part II of the Open Access
Transmission Tariff with a term of less than one year. Short-Term Firm
Point-To-Point Transmission Service of duration of less than one
calendar day is sometimes referred to as Hourly Firm Point-To-Point
Transmission Service.
60. Southern Intertie
The Southern Intertie is the segment of the FCRTS that includes,
but is not limited to, the major transmission facilities consisting of
two 500 kV AC lines from John Day Substation to the Oregon-California
border; a portion of the 500 kV AC line from Buckley Substation to
Summer Lake Substation; and the 500 kV AC Intertie facilities, which
include Captain Jack Substation, the Alvey-Meridian AC line, one 1,000
kV DC line between the Celilo Substation and the Oregon-Nevada border,
and associated substation facilities.
61. Spill Condition
Spill Condition, for the purpose of determining credit or payment
for Deviations under the Energy Imbalance and Generation Imbalance
rates, exists when spill physically occurs on the BPA system due to
lack of load or market. Spill due to lack of load or market typically
occurs during periods of high flows or flood control implementation,
but can also occur at other times. Discretionary spill, where BPA may
choose whether to spill, does not constitute a Spill Condition. Spill
for fish is included in discretionary spill and is not a Spill
Condition.
62. Spinning Reserve Requirement
Spinning Reserve Requirement is a portion of a party's Operating
Reserve Requirement to the BPA Control Area. A party is responsible for
purchasing or otherwise providing Operating Reserve--Spinning Reserve
Service associated with its transactions which impose a reserve
obligation on the BPA Control Area.
The specific amounts required are determined consistent with North
American Electric Reliability Council (NERC) Policies, the Northwest
Power Pool (NWPP) Operating Manual, ``Contingency Reserve Sharing
Procedure,'' and the Western Electricity Coordinating Council (WECC)
``Minimum Operating Reliability Criteria'' (MORC).
63. Supplemental Reserve Requirement
Supplemental Reserve Requirement is a portion of a party's
Operating Reserve Requirement to the BPA Control Area. A party is
responsible for purchasing or otherwise providing Operating Reserve--
Supplemental Reserve Service associated with its transactions which
impose a reserve obligation on the BPA Control Area.
The specific amounts required are determined consistent with North
American Electric Reliability Council (NERC) Policies, the Northwest
Power Pool (NWPP) Operating Manual, ``Contingency Reserve Sharing
Procedure,'' and the Western Electricity Coordinating Council (WECC)
``Minimum Operating Reliability Criteria'' (MORC).
64. Total Transmission Demand
Total Transmission Demand is the sum of all the transmission
demands as defined in the applicable agreement.
[[Page 78114]]
65. Transmission Customer
A Transmission Customer is any Eligible Customer (or its Designated
Agent) under the Open Access Transmission Tariff that (a) executes a
Service Agreement, or (b) requests in writing that the BPA-TBL file
with the Commission, a proposed unexecuted Service Agreement to receive
transmission service under Part II of the Tariff. In addition, a
Transmission Customer is an entity that has executed any other
transmission service agreement with the BPA-TBL.
66. Transmission Demand
Transmission Demand is the maximum amount of capacity and energy
that the BPA-TBL agrees to transmit for the Transmission Customer over
the BPA-TBL's Transmission System between the Point(s) of Integration/
Interconnection/Receipt and the Point(s) of Delivery.
67. Transmission Provider
The Bonneville Power Administration's Transmission Business Line
(BPA-TBL) that owns, controls, or operates facilities used for the
transmission of electric energy in interstate commerce and provides
transmission service under the Open Access Transmission Tariff and
other agreements.
68. Utility Delivery
The Utility Delivery segment is that segment of the FCRTS that
provides service to utility customers at voltages below 34.5 kV.
69. Weekly Service
Weekly Service is Short-Term Firm and Non-Firm PTP Transmission
Service that starts at 00:00 of any date and stops at 00:00 at least
seven (7) days later, but less than or equal to 27 days later.
Issued in Portland, Oregon, on December 12, 2002.
Stephen J. Wright,
Administrator and Chief Executive Officer.
[FR Doc. 02-32070 Filed 12-19-02; 8:45 am]
BILLING CODE 6450-01-P