28 Nature of Network Integration Transmission Service

28.1 Scope of Service
    Network Integration Transmission Service is a transmission service
that allows Network Customers to efficiently and economically utilize
their Network Resources (as well as other non-designated generation
resources) to serve their Network Load located in the Transmission
Provider's Control Area and any additional load that may be designated
pursuant to Section 31.3 of the Tariff. The Network Customer taking
Network Integration Transmission Service must obtain or provide
Ancillary Services pursuant to Section 3.
28.2 Transmission Provider Responsibilities
    The Transmission Provider will plan, construct, operate and
maintain its Transmission System in accordance with Good Utility
Practice and its planning obligations in Attachment K in order to
provide the Network Customer with Network Integration Transmission
Service over the Transmission Provider's Transmission System. The
Transmission Provider, on behalf of its Native Load Customers, shall be
required to designate resources and loads in the same manner as any
Network Customer under Part III of this Tariff. This information must
be consistent with the information used by the Transmission Provider to
calculate available transfer capability. The Transmission Provider
shall include the Network Customer's Network Load in its Transmission
System planning and shall, consistent with Good Utility Practice and
Attachment K, endeavor to construct and place into service sufficient
transfer capability to deliver the Network Customer's Network Resources
to serve its Network Load on a basis comparable to the Transmission
Provider's delivery of its own generating and purchased resources to
its Native Load Customers.
28.3 Network Integration Transmission Service
    The Transmission Provider will provide firm transmission service
over its Transmission System to the Network Customer for the delivery
of capacity and energy from its designated Network Resources to service
its Network Loads on a basis that is comparable to the Transmission
Provider's use of the Transmission System to reliably serve its Native
Load Customers.
28.4 Secondary Service
    The Network Customer may use the Transmission Provider's
Transmission System to deliver energy to its Network Loads from
resources that have not been designated as Network Resources. Such
energy shall be transmitted, on an as-available basis, at no additional
charge. Secondary service shall not require the filing of an
Application for Network Integration Transmission Service under the
Tariff. However, all other requirements of Part III of the Tariff
(except for transmission rates) shall apply to secondary service.
Deliveries from resources other than Network Resources will have a
higher priority than any Non-Firm Point-To-Point Transmission Service
under Part II of the Tariff.
28.5 Real Power Losses
    Real Power Losses are associated with all transmission service. The
Transmission Provider is not obligated to provide Real Power Losses.
The Network Customer is responsible for replacing losses associated
with all transmission service as calculated by the Transmission
Provider. The applicable Real Power Loss factors are as follows: [To be
completed by the Transmission Provider].
28.6 Restrictions on Use of Service
    The Network Customer shall not use Network Integration Transmission
Service for (i) sales of capacity and energy to non-designated loads,
or (ii) direct or indirect provision of transmission service by the
Network Customer to third parties. All Network Customers taking Network
Integration Transmission Service shall use Point-to-Point Transmission
Service under Part II of the Tariff for any Third-Party Sale which
requires use of the Transmission Provider's Transmission System. The
Transmission Provider shall specify any appropriate charges and
penalties and all related terms and conditions applicable in the event
that a Network Customer uses Network Integration Transmission Service
or secondary service pursuant to Section 28.4 to facilitate a wholesale
sale that does not serve a Network Load.

29 Initiating Service

29.1 Condition Precedent for Receiving Service
    Subject to the terms and conditions of Part III of the Tariff, the
Transmission Provider will provide Network Integration Transmission
Service to any Eligible Customer, provided that (i) the Eligible
Customer completes an Application for service as provided under Part
III of the Tariff, (ii) the Eligible Customer and the Transmission
Provider complete the technical arrangements set forth in Sections 29.3
and 29.4, (iii) the Eligible Customer executes a Service Agreement
pursuant to Attachment F for service under Part III of the Tariff or
requests in writing that the Transmission Provider file a proposed
unexecuted Service Agreement with the Commission, and (iv) the Eligible
Customer executes a Network Operating Agreement with the

Transmission Provider pursuant to Attachment G, or requests in writing
that the Transmission Provider file a proposed unexecuted Network
Operating Agreement.
29.2 Application Procedures
    An Eligible Customer requesting service under Part III of the
Tariff must submit an Application, with a deposit approximating the
charge for one month of service, to the Transmission Provider as far as
possible in advance of the month in which service is to commence.
Unless subject to the procedures in Section 2, Completed Applications
for Network Integration Transmission Service will be assigned a
priority according to the date and time the Application is received,
with the earliest Application receiving the highest priority.
Applications should be submitted by entering the information listed
below on the Transmission Provider's OASIS. Prior to implementation of
the Transmission Provider's OASIS, a Completed Application may be
submitted by (i) transmitting the required information to the
Transmission Provider by telefax, or (ii) providing the information by
telephone over the Transmission Provider's time recorded telephone
line. Each of these methods will provide a time-stamped record for
establishing the service priority of the Application. A Completed
Application shall provide all of the information included in 18 CFR
Sec.  2.20 including but not limited to the following:
    (i) The identity, address, telephone number and facsimile number of
the party requesting service;
    (ii) A statement that the party requesting service is, or will be
upon commencement of service, an Eligible Customer under the Tariff;
    (iii) A description of the Network Load at each delivery point.
This description should separately identify and provide the Eligible
Customer's best estimate of the total loads to be served at each
transmission voltage level, and the loads to be served from each
Transmission Provider substation at the same transmission voltage
level. The description should include a ten (10) year forecast of
summer and winter load and resource requirements beginning with the
first year after the service is scheduled to commence;
    (iv) The amount and location of any interruptible loads included in
the Network Load. This shall include the summer and winter capacity
requirements for each interruptible load (had such load not been
interruptible), that portion of the load subject to interruption, the
conditions under which an interruption can be implemented and any
limitations on the amount and frequency of interruptions. An Eligible
Customer should identify the amount of interruptible customer load (if
any) included in the 10 year load forecast provided in response to
(iii) above;
    (v) A description of Network Resources (current and 10-year
projection). For each on-system Network Resource, such description
shall include:
     Unit size and amount of capacity from that unit to be
designated as Network Resource
     VAR capability (both leading and lagging) of all
generators
     Operating restrictions

--Any periods of restricted operations throughout the year
--Maintenance schedules
--Minimum loading level of unit
--Normal operating level of unit
--Any must-run unit designations required for system reliability or
contract reasons

     Approximate variable generating cost ($/MWH) for
redispatch computations
     Arrangements governing sale and delivery of power to third
parties from generating facilities located in the Transmission Provider
Control Area, where only a portion of unit output is designated as a
Network Resource;
    For each off-system Network Resource, such description shall
include:
     Identification of the Network Resource as an off-system
resource
     Amount of power to which the customer has rights
     Identification of the control area from which the power
will originate
     Delivery point(s) to the Transmission Provider's
Transmission System
     Transmission arrangements on the external transmission
system(s)
     Operating restrictions, if any

--Any periods of restricted operations throughout the year
--Maintenance schedules
--Minimum loading level of unit
--Normal operating level of unit
--Any must-run unit designations required for system reliability or
contract reasons

     Approximate variable generating cost ($/MWH) for
redispatch computations;
    (vi) Description of Eligible Customer's transmission system:
     Load flow and stability data, such as real and reactive
parts of the load, lines, transformers, reactive devices and load type,
including normal and emergency ratings of all transmission equipment in
a load flow format compatible with that used by the Transmission
Provider
     Operating restrictions needed for reliability
     Operating guides employed by system operators
     Contractual restrictions or committed uses of the Eligible
Customer's transmission system, other than the Eligible Customer's
Network Loads and Resources
     Location of Network Resources described in subsection (v)
above
     10 year projection of system expansions or upgrades
     Transmission System maps that include any proposed
expansions or upgrades
     Thermal ratings of Eligible Customer's Control Area ties
with other Control Areas;
    (vii) Service Commencement Date and the term of the requested
Network Integration Transmission Service. The minimum term for Network
Integration Transmission Service is one year;
    (viii) A statement signed by an authorized officer from or agent of
the Network Customer attesting that all of the network resources listed
pursuant to Section 29.2(v) satisfy the following conditions: (1) The
Network Customer owns the resource, has committed to purchase
generation pursuant to an executed contract, or has committed to
purchase generation where execution of a contract is contingent upon
the availability of transmission service under Part III of the Tariff;
and (2) the Network Resources do not include any resources, or any
portion thereof, that are committed for sale to non-designated third
party load or otherwise cannot be called upon to meet the Network
Customer's Network Load on a non-interruptible basis; and
    (ix) Any additional information required of the Transmission
Customer as specified in the Transmission Provider's planning process
established in Attachment K.
    Unless the Parties agree to a different time frame, the
Transmission Provider must acknowledge the request within ten (10) days
of receipt. The acknowledgement must include a date by which a
response, including a Service Agreement, will be sent to the Eligible
Customer. If an Application fails to meet the requirements of this
section, the Transmission Provider shall notify the Eligible Customer
requesting service within fifteen (15) days of receipt and specify the
reasons for such failure. Wherever possible, the Transmission Provider
will attempt to remedy deficiencies in the Application

[[Continued on page 3133]]

]

[[pp. 3133-3143]] Preventing Undue Discrimination and Preference in Transmission
Service

[[Continued from page 3132]]

through informal communications with the Eligible Customer. If such
efforts are unsuccessful, the Transmission Provider shall return the
Application without prejudice to the Eligible Customer filing a new or
revised Application that fully complies with the requirements of this
section. The Eligible Customer will be assigned a new priority
consistent with the date of the new or revised Application. The
Transmission Provider shall treat this information consistent with the
standards of conduct contained in Part 37 of the Commission's
regulations.
29.3 Technical Arrangements To Be Completed Prior to Commencement of
Service
    Network Integration Transmission Service shall not commence until
the Transmission Provider and the Network Customer, or a third party,
have completed installation of all equipment specified under the
Network Operating Agreement consistent with Good Utility Practice and
any additional requirements reasonably and consistently imposed to
ensure the reliable operation of the Transmission System. The
Transmission Provider shall exercise reasonable efforts, in
coordination with the Network Customer, to complete such arrangements
as soon as practicable taking into consideration the Service
Commencement Date.
29.4 Network Customer Facilities
    The provision of Network Integration Transmission Service shall be
conditioned upon the Network Customer's constructing, maintaining and
operating the facilities on its side of each delivery point or
interconnection necessary to reliably deliver capacity and energy from
the Transmission Provider's Transmission System to the Network
Customer. The Network Customer shall be solely responsible for
constructing or installing all facilities on the Network Customer's
side of each such delivery point or interconnection.
29.5 Filing of Service Agreement
    The Transmission Provider will file Service Agreements with the
Commission in compliance with applicable Commission regulations.

30 Network Resources

30.1 Designation of Network Resources
    Network Resources shall include all generation owned, purchased or
leased by the Network Customer designated to serve Network Load under
the Tariff. Network Resources may not include resources, or any portion
thereof, that are committed for sale to non-designated third party load
or otherwise cannot be called upon to meet the Network Customer's
Network Load on a non-interruptible basis. Any owned or purchased
resources that were serving the Network Customer's loads under firm
agreements entered into on or before the Service Commencement Date
shall initially be designated as Network Resources until the Network
Customer terminates the designation of such resources.
30.2 Designation of New Network Resources
    The Network Customer may designate a new Network Resource by
providing the Transmission Provider with as much advance notice as
practicable. A designation of a new Network Resource must be made
through the Transmission Provider's OASIS by a request for modification
of service pursuant to an Application under Section 29. This request
must include a statement that the new network resource satisfies the
following conditions: (1) The Network Customer owns the resource, has
committed to purchase generation pursuant to an executed contract, or
has committed to purchase generation where execution of a contract is
contingent upon the availability of transmission service under Part III
of the Tariff; and (2) The Network Resources do not include any
resources, or any portion thereof, that are committed for sale to non-
designated third party load or otherwise cannot be called upon to meet
the Network Customer's Network Load on a non-interruptible basis. The
Network Customer's request will be deemed deficient if it does not
include this statement and the Transmission Provider will follow the
procedures for a deficient application as described in Section 29.2 of
the Tariff.
30.3 Termination of Network Resources
    The Network Customer may terminate the designation of all or part
of a generating resource as a Network Resource by providing
notification to the Transmission Provider through OASIS as soon as
reasonably practicable, but not later than the firm scheduling deadline
for the period of termination. Any request for termination of Network
Resource status must be submitted on OASIS, and should indicate whether
the request is for indefinite or temporary termination. A request for
indefinite termination of Network Resource status must indicate the
date and time that the termination is to be effective, and the
identification and capacity of the resource(s) or portions thereof to
be indefinitely terminated. A request for temporary termination of
Network Resource status must include the following:
    (i) Effective date and time of temporary termination;
    (ii) Effective date and time of redesignation, following period of
temporary termination;
    (iii) Identification and capacity of resource(s) or portions
thereof to be temporarily terminated;
    (iv) Resource description and attestation for redesignating the
network resource following the temporary termination, in accordance
with Section 30.2; and
    (v) Identification of any related transmission service requests to
be evaluated concomitantly with the request for temporary termination,
such that the requests for undesignation and the request for these
related transmission service requests must be approved or denied as a
single request. The evaluation of these related transmission service
requests must take into account the termination of the network
resources identified in (iii) above, as well as all competing
transmission service requests of higher priority.
    As part of a temporary termination, a Network Customer may only
redesignate the same resource that was originally designated, or a
portion thereof. Requests to redesignate a different resource and/or a
resource with increased capacity will be deemed deficient and the
Transmission Provider will follow the procedures for a deficient
application as described in Section 29.2 of the Tariff.
30.4 Operation of Network Resources
    The Network Customer shall not operate its designated Network
Resources located in the Network Customer's or Transmission Provider's
Control Area such that the output of those facilities exceeds its
designated Network Load, plus Non-Firm Sales delivered pursuant to Part
II of the Tariff, plus losses, plus power sales under a Commission-
approved reserve sharing program. This limitation shall not apply to
changes in the operation of a Transmission Customer's Network Resources
at the request of the Transmission Provider to respond to an emergency
or other unforeseen condition which may impair or degrade the
reliability of the Transmission System. For all Network Resources not
physically connected with the Transmission Provider's Transmission
System, the Network Customer may not schedule delivery of energy in
excess of the Network Resource's capacity, as specified in the Network
Customer's

Application pursuant to Section 29, unless the Network Customer
supports such delivery within the Transmission Provider's Transmission
System by either obtaining Point-to-Point Transmission Service or
utilizing secondary service pursuant to Section 28.4. The Transmission
Provider shall specify the rate treatment and all related terms and
conditions applicable in the event that a Network Customer's schedule
at the delivery point for a Network Resource not physically
interconnected with the Transmission Provider's Transmission System
exceeds the Network Resource's designated capacity, excluding energy
delivered using secondary service or Point-to-Point Transmission
Service.
30.5 Network Customer Redispatch Obligation
    As a condition to receiving Network Integration Transmission
Service, the Network Customer agrees to redispatch its Network
Resources as requested by the Transmission Provider pursuant to Section
33.2. To the extent practical, the redispatch of resources pursuant to
this section shall be on a least cost, non-discriminatory basis between
all Network Customers, and the Transmission Provider.
30.6 Transmission Arrangements for Network Resources Not Physically
Interconnected With the Transmission Provider
    The Network Customer shall be responsible for any arrangements
necessary to deliver capacity and energy from a Network Resource not
physically interconnected with the Transmission Provider's Transmission
System. The Transmission Provider will undertake reasonable efforts to
assist the Network Customer in obtaining such arrangements, including
without limitation, providing any information or data required by such
other entity pursuant to Good Utility Practice.
30.7 Limitation on Designation of Network Resources
    The Network Customer must demonstrate that it owns or has committed
to purchase generation pursuant to an executed contract in order to
designate a generating resource as a Network Resource. Alternatively,
the Network Customer may establish that execution of a contract is
contingent upon the availability of transmission service under Part III
of the Tariff.
30.8 Use of Interface Capacity by the Network Customer
    There is no limitation upon a Network Customer's use of the
Transmission Provider's Transmission System at any particular interface
to integrate the Network Customer's Network Resources (or substitute
economy purchases) with its Network Loads. However, a Network
Customer's use of the Transmission Provider's total interface capacity
with other transmission systems may not exceed the Network Customer's
Load.
30.9 Network Customer Owned Transmission Facilities
    The Network Customer that owns existing transmission facilities
that are integrated with the Transmission Provider's Transmission
System may be eligible to receive consideration either through a
billing credit or some other mechanism. In order to receive such
consideration the Network Customer must demonstrate that its
transmission facilities are integrated into the plans or operations of
the Transmission Provider, to serve its power and transmission
customers. For facilities added by the Network Customer subsequent to
the [the effective date of a Final Rule in RM05-25-000], the Network
Customer shall receive credit for such transmission facilities added if
such facilities are integrated into the operations of the Transmission
Provider's facilities; provided however, the Network Customer's
transmission facilities shall be presumed to be integrated if such
transmission facilities, if owned by the Transmission Provider, would
be eligible for inclusion in the Transmission Provider's annual
transmission revenue requirement as specified in Attachment H.
Calculation of any credit under this subsection shall be addressed in
either the Network Customer's Service Agreement or any other agreement
between the Parties.

31 Designation of Network Load

31.1 Network Load
    The Network Customer must designate the individual Network Loads on
whose behalf the Transmission Provider will provide Network Integration
Transmission Service. The Network Loads shall be specified in the
Service Agreement.
31.2 New Network Loads Connected With the Transmission Provider
    The Network Customer shall provide the Transmission Provider with
as much advance notice as reasonably practicable of the designation of
new Network Load that will be added to its Transmission System. A
designation of new Network Load must be made through a modification of
service pursuant to a new Application. The Transmission Provider will
use due diligence to install any transmission facilities required to
interconnect a new Network Load designated by the Network Customer. The
costs of new facilities required to interconnect a new Network Load
shall be determined in accordance with the procedures provided in
Section 32.4 and shall be charged to the Network Customer in accordance
with Commission policies.
31.3 Network Load Not Physically Interconnected With the Transmission
Provider
    This section applies to both initial designation pursuant to
Section 31.1 and the subsequent addition of new Network Load not
physically interconnected with the Transmission Provider. To the extent
that the Network Customer desires to obtain transmission service for a
load outside the Transmission Provider's Transmission System, the
Network Customer shall have the option of (1) electing to include the
entire load as Network Load for all purposes under Part III of the
Tariff and designating Network Resources in connection with such
additional Network Load, or (2) excluding that entire load from its
Network Load and purchasing Point-To-Point Transmission Service under
Part II of the Tariff. To the extent that the Network Customer gives
notice of its intent to add a new Network Load as part of its Network
Load pursuant to this section the request must be made through a
modification of service pursuant to a new Application.
31.4 New Interconnection Points
    To the extent the Network Customer desires to add a new Delivery
Point or interconnection point between the Transmission Provider's
Transmission System and a Network Load, the Network Customer shall
provide the Transmission Provider with as much advance notice as
reasonably practicable.
31.5 Changes in Service Requests
    Under no circumstances shall the Network Customer's decision to
cancel or delay a requested change in Network Integration Transmission
Service (e.g. the addition of a new Network Resource or designation of
a new Network Load) in any way relieve the Network Customer of its
obligation to pay the costs of transmission facilities constructed by
the Transmission Provider and charged to the Network Customer as
reflected in the Service

Agreement. However, the Transmission Provider must treat any requested
change in Network Integration Transmission Service in a non-
discriminatory manner.
31.6 Annual Load and Resource Information Updates
    The Network Customer shall provide the Transmission Provider with
annual updates of Network Load and Network Resource forecasts
consistent with those included in its Application for Network
Integration Transmission Service under Part III of the Tariff
including, but not limited to, any information provided under section
29.2(ix) pursuant to the Transmission Provider's planning process in
Attachment K. The Network Customer also shall provide the Transmission
Provider with timely written notice of material changes in any other
information provided in its Application relating to the Network
Customer's Network Load, Network Resources, its transmission system or
other aspects of its facilities or operations affecting the
Transmission Provider's ability to provide reliable service.

32 Additional Study Procedures for Network Integration Transmission
Service Requests

32.1 Notice of Need for System Impact Study
    After receiving a request for service, the Transmission Provider
shall determine on a non-discriminatory basis whether a System Impact
Study is needed. A description of the Transmission Provider's
methodology for completing a System Impact Study is provided in
Attachment D. If the Transmission Provider determines that a System
Impact Study is necessary to accommodate the requested service, it
shall so inform the Eligible Customer, as soon as practicable. In such
cases, the Transmission Provider shall within thirty (30) days of
receipt of a Completed Application, tender a System Impact Study
Agreement pursuant to which the Eligible Customer shall agree to
reimburse the Transmission Provider for performing the required System
Impact Study. For a service request to remain a Completed Application,
the Eligible Customer shall execute the System Impact Study Agreement
and return it to the Transmission Provider within fifteen (15) days. If
the Eligible Customer elects not to execute the System Impact Study
Agreement, its Application shall be deemed withdrawn and its deposit
shall be returned with interest.
32.2 System Impact Study Agreement and Cost Reimbursement
    (i) The System Impact Study Agreement will clearly specify the
Transmission Provider's estimate of the actual cost, and time for
completion of the System Impact Study. The charge shall not exceed the
actual cost of the study. In performing the System Impact Study, the
Transmission Provider shall rely, to the extent reasonably practicable,
on existing transmission planning studies. The Eligible Customer will
not be assessed a charge for such existing studies; however, the
Eligible Customer will be responsible for charges associated with any
modifications to existing planning studies that are reasonably
necessary to evaluate the impact of the Eligible Customer's request for
service on the Transmission System.
    (ii) If in response to multiple Eligible Customers requesting
service in relation to the same competitive solicitation, a single
System Impact Study is sufficient for the Transmission Provider to
accommodate the service requests, the costs of that study shall be pro-
rated among the Eligible Customers.
    (iii) For System Impact Studies that the Transmission Provider
conducts on its own behalf, the Transmission Provider shall record the
cost of the System Impact Studies pursuant to Section 8.
32.3 System Impact Study Procedures
    Upon receipt of an executed System Impact Study Agreement, the
Transmission Provider will use due diligence to complete the required
System Impact Study within a sixty (60) day period. The System Impact
Study shall identify (1) any system constraints, identified with
specificity by transmission element or flowgate, (2) redispatch options
(when requested by an Eligible Customer) including, to the extent
possible, an estimate of the cost of redispatch, (3) available options
for installation of automatic devices to curtail service (when
requested by an Eligible Customer), and (4) additional Direct
Assignment Facilities or Network Upgrades required to provide the
requested service. For customers requesting the study of redispatch
options, the System Impact Study shall (1) identify all resources
located within the Transmission Provider's Control Area that can
significantly contribute toward relieving the system constraint and (2)
provide a measurement of each resource's impact on the system
constraint. If the Transmission Provider possesses information
indicating that any resource outside its Control Area could relieve the
constraint, it shall identify each such resource in the System Impact
Study. In the event that the Transmission Provider is unable to
complete the required System Impact Study within such time period, it
shall so notify the Eligible Customer and provide an estimated
completion date along with an explanation of the reasons why additional
time is required to complete the required studies. A copy of the
completed System Impact Study and related work papers shall be made
available to the Eligible Customer as soon as the System Impact Study
is complete. The Transmission Provider will use the same due diligence
in completing the System Impact Study for an Eligible Customer as it
uses when completing studies for itself. The Transmission Provider
shall notify the Eligible Customer immediately upon completion of the
System Impact Study if the Transmission System will be adequate to
accommodate all or part of a request for service or that no costs are
likely to be incurred for new transmission facilities or upgrades. In
order for a request to remain a Completed Application, within fifteen
(15) days of completion of the System Impact Study the Eligible
Customer must execute a Service Agreement or request the filing of an
unexecuted Service Agreement, or the Application shall be deemed
terminated and withdrawn.
32.4 Facilities Study Procedures
    If a System Impact Study indicates that additions or upgrades to
the Transmission System are needed to supply the Eligible Customer's
service request, the Transmission Provider, within thirty (30) days of
the completion of the System Impact Study, shall tender to the Eligible
Customer a Facilities Study Agreement pursuant to which the Eligible
Customer shall agree to reimburse the Transmission Provider for
performing the required Facilities Study. For a service request to
remain a Completed Application, the Eligible Customer shall execute the
Facilities Study Agreement and return it to the Transmission Provider
within fifteen (15) days. If the Eligible Customer elects not to
execute the Facilities Study Agreement, its Application shall be deemed
withdrawn and its deposit shall be returned with interest. Upon receipt
of an executed Facilities Study Agreement, the Transmission Provider
will use due diligence to complete the required Facilities Study within
a sixty (60) day period. If the Transmission Provider is unable to
complete the Facilities Study in the allotted time period, the
Transmission Provider shall

notify the Eligible Customer and provide an estimate of the time needed
to reach a final determination along with an explanation of the reasons
that additional time is required to complete the study. When completed,
the Facilities Study will include a good faith estimate of (i) the cost
of Direct Assignment Facilities to be charged to the Eligible Customer,
(ii) the Eligible Customer's appropriate share of the cost of any
required Network Upgrades, and (iii) the time required to complete such
construction and initiate the requested service. The Eligible Customer
shall provide the Transmission Provider with a letter of credit or
other reasonable form of security acceptable to the Transmission
Provider equivalent to the costs of new facilities or upgrades
consistent with commercial practices as established by the Uniform
Commercial Code. The Eligible Customer shall have thirty (30) days to
execute a Service Agreement or request the filing of an unexecuted
Service Agreement and provide the required letter of credit or other
form of security or the request no longer will be a Completed
Application and shall be deemed terminated and withdrawn.
32.5 Penalties for Failure To Meet Study Deadlines
    Section 19.9 defines penalties that apply for failure to meet the
60-day study completion due diligence deadlines for System Impact
Studies and Facilities Studies under Part II of the Tariff. These same
requirements and penalties apply to service under Part III of the
Tariff.

33 Load Shedding and Curtailments

33.1 Procedures
    Prior to the Service Commencement Date, the Transmission Provider
and the Network Customer shall establish Load Shedding and Curtailment
procedures pursuant to the Network Operating Agreement with the
objective of responding to contingencies on the Transmission System and
on systems directly and indirectly interconnected with Transmission
Provider's Transmission System. The Parties will implement such
programs during any period when the Transmission Provider determines
that a system contingency exists and such procedures are necessary to
alleviate such contingency. The Transmission Provider will notify all
affected Network Customers in a timely manner of any scheduled
Curtailment.
33.2 Transmission Constraints
    During any period when the Transmission Provider determines that a
transmission constraint exists on the Transmission System, and such
constraint may impair the reliability of the Transmission Provider's
system, the Transmission Provider will take whatever actions,
consistent with Good Utility Practice, that are reasonably necessary to
maintain the reliability of the Transmission Provider's system. To the
extent the Transmission Provider determines that the reliability of the
Transmission System can be maintained by redispatching resources, the
Transmission Provider will initiate procedures pursuant to the Network
Operating Agreement to redispatch all Network Resources and the
Transmission Provider's own resources on a least-cost basis without
regard to the ownership of such resources. Any redispatch under this
section may not unduly discriminate between the Transmission Provider's
use of the Transmission System on behalf of its Native Load Customers
and any Network Customer's use of the Transmission System to serve its
designated Network Load.
33.3 Cost Responsibility for Relieving Transmission Constraints
    Whenever the Transmission Provider implements least-cost redispatch
procedures in response to a transmission constraint, the Transmission
Provider and Network Customers will each bear a proportionate share of
the total redispatch cost based on their respective Load Ratio Shares.
33.4 Curtailments of Scheduled Deliveries
    If a transmission constraint on the Transmission Provider's
Transmission System cannot be relieved through the implementation of
least-cost redispatch procedures and the Transmission Provider
determines that it is necessary to Curtail scheduled deliveries, the
Parties shall Curtail such schedules in accordance with the Network
Operating Agreement or pursuant to the Transmission Loading Relief
procedures specified in Attachment J.
33.5 Allocation of Curtailments
    The Transmission Provider shall, on a non-discriminatory basis,
Curtail the transaction(s) that effectively relieve the constraint.
However, to the extent practicable and consistent with Good Utility
Practice, any Curtailment will be shared by the Transmission Provider
and Network Customer in proportion to their respective Load Ratio
Shares. The Transmission Provider shall not direct the Network Customer
to Curtail schedules to an extent greater than the Transmission
Provider would Curtail the Transmission Provider's schedules under
similar circumstances.
33.6 Load Shedding
    To the extent that a system contingency exists on the Transmission
Provider's Transmission System and the Transmission Provider determines
that it is necessary for the Transmission Provider and the Network
Customer to shed load, the Parties shall shed load in accordance with
previously established procedures under the Network Operating
Agreement.
33.7 System Reliability
    Notwithstanding any other provisions of this Tariff, the
Transmission Provider reserves the right, consistent with Good Utility
Practice and on a not unduly discriminatory basis, to Curtail Network
Integration Transmission Service without liability on the Transmission
Provider's part for the purpose of making necessary adjustments to,
changes in, or repairs on its lines, substations and facilities, and in
cases where the continuance of Network Integration Transmission Service
would endanger persons or property. In the event of any adverse
condition(s) or disturbance(s) on the Transmission Provider's
Transmission System or on any other system(s) directly or indirectly
interconnected with the Transmission Provider's Transmission System,
the Transmission Provider, consistent with Good Utility Practice, also
may Curtail Network Integration Transmission Service in order to (i)
limit the extent or damage of the adverse condition(s) or
disturbance(s), (ii) prevent damage to generating or transmission
facilities, or (iii) expedite restoration of service. The Transmission
Provider will give the Network Customer as much advance notice as is
practicable in the event of such Curtailment. Any Curtailment of
Network Integration Transmission Service will be not unduly
discriminatory relative to the Transmission Provider's use of the
Transmission System on behalf of its Native Load Customers. The
Transmission Provider shall specify the rate treatment and all related
terms and conditions applicable in the event that the Network Customer
fails to respond to established Load Shedding and Curtailment
procedures.

34 Rates and Charges

    The Network Customer shall pay the Transmission Provider for any
Direct

Assignment Facilities, Ancillary Services, and applicable study costs,
consistent with Commission policy, along with the following:
34.1 Monthly Demand Charge
    The Network Customer shall pay a monthly Demand Charge, which shall
be determined by multiplying its Load Ratio Share times one twelfth (1/
12) of the Transmission Provider's Annual Transmission Revenue
Requirement specified in Schedule H.
34.2 Determination of Network Customer's Monthly Network Load
    The Network Customer's monthly Network Load is its hourly load
(including its designated Network Load not physically interconnected
with the Transmission Provider under Section 31.3) coincident with the
Transmission Provider's Monthly Transmission System Peak.
34.3 Determination of Transmission Provider's Monthly Transmission
System Load
    The Transmission Provider's monthly Transmission System load is the
Transmission Provider's Monthly Transmission System Peak minus the
coincident peak usage of all Firm Point-To-Point Transmission Service
customers pursuant to Part II of this Tariff plus the Reserved Capacity
of all Firm Point-To-Point Transmission Service customers.
34.4 Redispatch Charge
    The Network Customer shall pay a Load Ratio Share of any redispatch
costs allocated between the Network Customer and the Transmission
Provider pursuant to Section 33. To the extent that the Transmission
Provider incurs an obligation to the Network Customer for redispatch
costs in accordance with Section 33, such amounts shall be credited
against the Network Customer's bill for the applicable month.
34.5 Stranded Cost Recovery
    The Transmission Provider may seek to recover stranded costs from
the Network Customer pursuant to this Tariff in accordance with the
terms, conditions and procedures set forth in FERC Order No. 888.
However, the Transmission Provider must separately file any proposal to
recover stranded costs under Section 205 of the Federal Power Act.

35 Operating Arrangements

35.1 Operation Under the Network Operating Agreement
    The Network Customer shall plan, construct, operate and maintain
its facilities in accordance with Good Utility Practice and in
conformance with the Network Operating Agreement.
35.2 Network Operating Agreement
    The terms and conditions under which the Network Customer shall
operate its facilities and the technical and operational matters
associated with the implementation of Part III of the Tariff shall be
specified in the Network Operating Agreement. The Network Operating
Agreement shall provide for the Parties to (i) operate and maintain
equipment necessary for integrating the Network Customer within the
Transmission Provider's Transmission System (including, but not limited
to, remote terminal units, metering, communications equipment and
relaying equipment), (ii) transfer data between the Transmission
Provider and the Network Customer (including, but not limited to, heat
rates and operational characteristics of Network Resources, generation
schedules for units outside the Transmission Provider's Transmission
System, interchange schedules, unit outputs for redispatch required
under Section 33, voltage schedules, loss factors and other real time
data), (iii) use software programs required for data links and
constraint dispatching, (iv) exchange data on forecasted loads and
resources necessary for long-term planning, and (v) address any other
technical and operational considerations required for implementation of
Part III of the Tariff, including scheduling protocols. The Network
Operating Agreement will recognize that the Network Customer shall
either (i) operate as a Control Area under applicable guidelines of the
Electric Reliability Organization (ERO) as defined in 18 CFR 39.1, (ii)
satisfy its Control Area requirements, including all necessary
Ancillary Services, by contracting with the Transmission Provider, or
(iii) satisfy its Control Area requirements, including all necessary
Ancillary Services, by contracting with another entity, consistent with
Good Utility Practice, which satisfies the applicable reliability
guidelines of the ERO. The Transmission Provider shall not unreasonably
refuse to accept contractual arrangements with another entity for
Ancillary Services. The Network Operating Agreement is included in
Attachment G.
35.3 Network Operating Committee
    A Network Operating Committee (Committee) shall be established to
coordinate operating criteria for the Parties' respective
responsibilities under the Network Operating Agreement. Each Network
Customer shall be entitled to have at least one representative on the
Committee. The Committee shall meet from time to time as need requires,
but no less than once each calendar year.

Schedule 1--Scheduling, System Control and Dispatch Service

    This service is required to schedule the movement of power through,
out of, within, or into a Control Area. This service can be provided
only by the operator of the Control Area in which the transmission
facilities used for transmission service are located. Scheduling,
System Control and Dispatch Service is to be provided directly by the
Transmission Provider (if the Transmission Provider is the Control Area
operator) or indirectly by the Transmission Provider making
arrangements with the Control Area operator that performs this service
for the Transmission Provider's Transmission System. The Transmission
Customer must purchase this service from the Transmission Provider or
the Control Area operator. The charges for Scheduling, System Control
and Dispatch Service are to be based on the rates set forth below. To
the extent the Control Area operator performs this service for the
Transmission Provider, charges to the Transmission Customer are to
reflect only a pass-through of the costs charged to the Transmission
Provider by that Control Area operator.

Schedule 2--Reactive Supply and Voltage Control From Generation or
Other Sources Service

    In order to maintain transmission voltages on the Transmission
Provider's transmission facilities within acceptable limits, generation
facilities and non-generation resources capable of providing this
service that are under the control of the control area operator are
operated to produce (or absorb) reactive power. Thus, Reactive Supply
and Voltage Control from Generation or Other Sources Service must be
provided for each transaction on the Transmission Provider's
transmission facilities. The amount of Reactive Supply and Voltage
Control from Generation or Other Sources Service that must be supplied
with respect to the Transmission Customer's transaction will be
determined based on the reactive power support necessary to maintain
transmission voltages within

limits that are generally accepted in the region and consistently
adhered to by the Transmission Provider.
    Reactive Supply and Voltage Control from Generation or Other
Sources Service is to be provided directly by the Transmission Provider
(if the Transmission Provider is the Control Area operator) or
indirectly by the Transmission Provider making arrangements with the
Control Area operator that performs this service for the Transmission
Provider's Transmission System. The Transmission Customer must purchase
this service from the Transmission Provider or the Control Area
operator. The charges for such service will be based on the rates set
forth below. To the extent the Control Area operator performs this
service for the Transmission Provider, charges to the Transmission
Customer are to reflect only a pass-through of the costs charged to the
Transmission Provider by the Control Area operator.

Schedule 3--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) and by other non-generation resources
capable of providing this service as necessary to follow the moment-by-
moment changes in load. The obligation to maintain this balance between
resources and load lies with the Transmission Provider (or the Control
Area operator that performs this function for the Transmission
Provider). The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Regulation and Frequency Response Service obligation. The
amount of and charges for Regulation and Frequency Response Service are
set forth below. To the extent the Control Area operator performs this
service for the Transmission Provider, charges to the Transmission
Customer are to reflect only a pass-through of the costs charged to the
Transmission Provider by that Control Area operator.

Schedule 4--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 Transmission
Provider 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 Transmission Provider or make
alternative comparable arrangements, which may include use of non-
generation resources capable of providing this service, to satisfy its
Energy Imbalance Service obligation. To the extent the Control Area
operator performs this service for the Transmission Provider, charges
to the Transmission Customer are to reflect only a pass-through of the
costs charged to the Transmission Provider by that Control Area
operator. The Transmission Provider may charge a Transmission Customer
a penalty for either hourly energy imbalances under this Schedule or a
penalty for hourly generator imbalances under Schedule 9 for imbalances
occurring during the same hour, but not both unless the imbalances
aggravate rather than offset each other.
    The Transmission Provider shall establish charges for energy
imbalance based on the deviation bands as follows: (i) Deviations
within +/-1.5 percent (with a minimum of 2 MW) of the scheduled
transaction to be applied hourly to any energy imbalance that occurs as
a result of the Transmission Customer's scheduled transaction(s) will
be netted on a monthly basis and settled financially, at the end of the
month, at 100 percent of incremental or decremental cost; (ii)
deviations greater than +/-1.5 percent up to 7.5 percent (or greater
than 2 MW up to 10 MW) of the scheduled transaction to be applied
hourly to any energy imbalance that occurs as a result of the
Transmission Customer's scheduled transaction(s) will be settled
financially, at the end of each month, at 110 percent of incremental
cost or 90 percent of decremental cost, and (iii) deviations greater
than +/-7.5 percent (or 10 MW) of the scheduled transaction to be
applied hourly to any energy imbalance that occurs as a result of the
Transmission Customer's scheduled transaction(s) will be settled
financially, at the end of each month, at 125 percent of incremental
cost or 75 percent of decremental cost.
    For purposes of this Schedule, incremental cost and decremental
cost represent the Transmission Provider's actual average hourly cost
of the last 10 MW dispatched for any purpose, i.e., to supply the
Transmission Provider's Native Load Customers, correct imbalances, or
make off-system sales, based on the replacement cost of fuel, unit heat
rates, start-up costs (including any commitment and redispatch costs),
incremental operation and maintenance costs, and purchased and
interchange power costs and taxes, as applicable.

Schedule 5--Operating Reserve--Spinning Reserve Service

    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 and by non-generation resources capable of providing this
service. The Transmission Provider must offer this service when the
transmission service is used to serve load within its Control Area. The
Transmission Customer must either purchase this service from the
Transmission Provider or make alternative comparable arrangements to
satisfy its Spinning Reserve Service obligation. The amount of and
charges for Spinning Reserve Service are set forth below. To the extent
the Control Area operator performs this service for the Transmission
Provider, charges to the Transmission Customer are to reflect only a
pass-through of the costs charged to the Transmission Provider by that
Control Area operator.

Schedule 6--Operating Reserve--Supplemental Reserve Service

    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 or
other non-generation resources capable of providing this service. The
Transmission Provider must offer this service when the transmission
service is used to serve load within its Control Area. The Transmission
Customer must either purchase this service from the Transmission
Provider or make alternative comparable arrangements to satisfy its
Supplemental Reserve Service obligation. The amount of and charges for
Supplemental Reserve Service are set forth below. To the extent the
Control Area operator performs this service for the Transmission
Provider, charges to the Transmission Customer are to reflect only a
pass-through of the

costs charged to the Transmission Provider by that Control Area
operator.

Schedule 7--Long-Term Firm and Short-Term Firm Point-To-Point
Transmission Service

    The Transmission Customer shall compensate the Transmission
Provider each month for Reserved Capacity at the sum of the applicable
charges set forth below:
    (1) Yearly delivery: one-twelfth of the demand charge of $----/KW
of Reserved Capacity per year.
    (2) Monthly delivery: $----/KW of Reserved Capacity per month.
    (3) Weekly delivery: $----/KW of Reserved Capacity per week.
    (4) Daily delivery: $----/KW of Reserved Capacity per day.
    The total demand charge in any week, pursuant to a reservation for
Daily delivery, shall not exceed the rate specified in section (3)
above times the highest amount in kilowatts of Reserved Capacity in any
day during such week.
    (5) Discounts: Three principal requirements apply to discounts for
transmission service as follows (1) any offer of a discount made by the
Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts (including requests for use by one's wholesale merchant or an
Affiliate's use) must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
point(s) of receipt to point(s) of delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
    (6) Resales: The rates and rules governing charges and discounts
stated above shall not apply to resales of transmission service,
compensation for which shall be governed by section 23.1 of the Tariff.

Schedule 8--Non-Firm Point-To-Point Transmission Service

    The Transmission Customer shall compensate the Transmission
Provider for Non-Firm Point-To-Point Transmission Service up to the sum
of the applicable charges set forth below:
    (1) Monthly delivery: $----/KW of Reserved Capacity per month.
    (2) Weekly delivery: $----/KW of Reserved Capacity per week.
    (3) Daily delivery: $----/KW of Reserved Capacity per day.
    The total demand charge in any week, pursuant to a reservation for
Daily delivery, shall not exceed the rate specified in section (2)
above times the highest amount in kilowatts of Reserved Capacity in any
day during such week.
    (4) Hourly delivery: The basic charge shall be that agreed upon by
the Parties at the time this service is reserved and in no event shall
exceed $----/MWH. The total demand charge in any day, pursuant to a
reservation for Hourly delivery, shall not exceed the rate specified in
section (3) above times the highest amount in kilowatts of Reserved
Capacity in any hour during such day. In addition, the total demand
charge in any week, pursuant to a reservation for Hourly or Daily
delivery, shall not exceed the rate specified in section (2) above
times the highest amount in kilowatts of Reserved Capacity in any hour
during such week.
    (5) Discounts: Three principal requirements apply to discounts for
transmission service as follows (1) any offer of a discount made by the
Transmission Provider must be announced to all Eligible Customers
solely by posting on the OASIS, (2) any customer-initiated requests for
discounts (including requests for use by one's wholesale merchant or an
Affiliate's use) must occur solely by posting on the OASIS, and (3)
once a discount is negotiated, details must be immediately posted on
the OASIS. For any discount agreed upon for service on a path, from
point(s) of receipt to point(s) of delivery, the Transmission Provider
must offer the same discounted transmission service rate for the same
time period to all Eligible Customers on all unconstrained transmission
paths that go to the same point(s) of delivery on the Transmission
System.
    (6) Resales: The rates and rules governing charges and discounts
stated above shall not apply to resales of transmission service,
compensation for which shall be governed by section 23.1 of the Tariff.

Schedule 9--Generator Imbalance Service

    Generator Imbalance Service is provided when a difference occurs
between the output of a generator located in the Transmission
Provider's Control Area and a delivery schedule from that generator to
(1) another Control Area or (2) a load within the Transmission
Provider's Control Area over a single hour. The Transmission Provider
must offer this service, to the extent it is physically feasible to do
so from its resources or from resources available to it, when
Transmission Service is used to deliver energy from a generator located
within its Control Area. The Transmission Customer must either purchase
this service from the Transmission Provider or make alternative
comparable arrangements, which may include use of non-generation
resources capable of providing this service, to satisfy its Generator
Imbalance Service obligation. To the extent the Control Area operator
performs this service for the Transmission Provider, charges to the
Transmission Customer are to reflect only a pass-through of the costs
charged to the Transmission Provider by that Control Area Operator. The
Transmission Provider may charge a Transmission Customer a penalty for
either hourly generator imbalances under this Schedule or a penalty for
hourly energy imbalances under Schedule 4 for imbalances occurring
during the same hour, but not both unless the imbalances aggravate
rather than offset each other.
    The Transmission Provider shall establish charges for generator
imbalance based on the deviation bands as follows: (i) deviations
within +/-1.5 percent (with a minimum of 2 MW) of the scheduled
transaction to be applied hourly to any generator imbalance that occurs
as a result of the Transmission Customer's scheduled transaction(s)
will be netted on a monthly basis and settled financially, at the end
of each month, at 100 percent of incremental or decremental cost, (ii)
deviations greater than +/-1.5 percent up to 7.5 percent (or greater
than 2 MW up to 10 MW) of the scheduled transaction to be applied
hourly to any generator imbalance that occurs as a result of the
Transmission Customer's scheduled transaction(s) will be settled
financially, at the end of each month, at 110 percent of incremental
cost or 90 percent of decremental cost, and (iii) deviations greater
than +/-7.5 percent (or 10 MW) of the scheduled transaction to be
applied hourly to any generator imbalance that occurs as a result of
the Transmission Customer's scheduled transaction(s) will be settled at
125 percent of incremental cost or 75 percent of decremental cost,
except that an intermittent resource will be exempt from this deviation
band and will pay the deviation band charges for all deviations greater
than the larger of 1.5 percent or 2 MW. An intermittent resource, for
the limited purpose of this Schedule is an electric generator that is
not dispatchable and cannot store its fuel source and therefore cannot
respond to changes in system demand or respond to transmission security
constraints.

    1. Notwithstanding the foregoing, deviations from scheduled
transactions in order to respond to directives by the Transmission
Provider, a balancing authority, or a reliability coordinator shall not
be subject to the deviation bands identified above and, instead, shall
be settled financially, at the end of the month, at 100 percent of
incremental and decremental cost. Such directives may include
instructions to correct frequency decay, respond to a reserve sharing
event, or change output to relieve congestion.
    2. For purposes of this Schedule, incremental cost and decremental
cost represent the Transmission Provider's actual average hourly cost
of the last 10 MW dispatched for any purpose, i.e., to supply the
Transmission Provider's Native Load Customers, correct imbalances, or
make off-system sales, based on the replacement cost of fuel, unit heat
rates, start-up costs (including any commitment and redispatch costs),
incremental operation and maintenance costs, and purchased and
interchange power costs and taxes, as applicable.

Attachment A--Form of Service Agreement For Firm Point-To-Point
Transmission Service

    1.0 This Service Agreement, dated as of --------, is entered into,
by and between -------- (the Transmission Provider), and --------
(``Transmission Customer'').
    2.0 The Transmission Customer has been determined by the
Transmission Provider to have a Completed Application for Firm Point-
To-Point Transmission Service under the Tariff.
    3.0 The Transmission Customer has provided to the Transmission
Provider an Application deposit in accordance with the provisions of
Section 17.3 of the Tariff.
    4.0 Service under this agreement shall commence on the later of (1)
the requested service commencement date, or (2) the date on which
construction of any Direct Assignment Facilities and/or Network
Upgrades are completed, or (3) such other date as it is permitted to
become effective by the Commission. Service under this agreement shall
terminate on such date as mutually agreed upon by the parties.
    5.0 The Transmission Provider agrees to provide and the
Transmission Customer agrees to take and pay for Firm Point-To-Point
Transmission Service in accordance with the provisions of Part II of
the Tariff and this Service Agreement.
    6.0 Any notice or request made to or by either Party regarding this
Service Agreement shall be made to the representative of the other
Party as indicated below.
    Transmission Provider:

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    Transmission Customer:

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    7.0 The Tariff is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement to
be executed by their respective authorized officials.

    Transmission Provider:

    By:
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Name

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Title

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Date

    Transmission Customer:

    By:
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Name
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Title
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Date

Specifications for Long-Term Firm Point-To-Point Transmission Service

1.0 Term of Transaction:-----------------------------------------------

Start Date:------------------------------------------------------------

Termination Date:------------------------------------------------------

2.0 Description of capacity and energy to be transmitted by
Transmission Provider including the electric Control Area in which the
transaction originates.------------------------------------------------

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3.0 Point(s) of Receipt:-----------------------------------------------

Delivering Party:------------------------------------------------------

4.0 Point(s) of Delivery:----------------------------------------------
Receiving Party:-------------------------------------------------------

5.0 Maximum amount of capacity and energy to be transmitted (Reserved
Capacity):-------------------------------------------------------------

6.0 Designation of party(ies) subject to reciprocal service obligation:

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7.0 Name(s) of any Intervening Systems providing transmission service:-

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8.0 Service under this Agreement may be subject to some combination of
the charges detailed below. (The appropriate charges for individual
transactions will be determined in accordance with the terms and
conditions of the Tariff.)

8.1 Transmission Charge:-----------------------------------------------

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8.2 System Impact and/or Facilities Study Charge(s):-------------------

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8.3 Direct Assignment Facilities Charge:-------------------------------

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8.4 Ancillary Services Charges:----------------------------------------

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[FEDREG][VOL]*[/VOL][NO]*[/NO][DATE]*[/
DATE][RULES][RULE][PREAMB][AGENCY]*[/AGENCY][SUBJECT]*[/SUBJECT][/
PREAMB][SUPLINF][HED]*[/HED]Attachment A-1--Form of Service Agreement
for the Resale, Reassignment, or Transfer of Point-To-Point
Transmission Service

    1.0 This Service Agreement, dated as of --------, is entered into,
by and between -------- (the Transmission Provider), and -------- (the
Assignee).
    2.0 The Assignee has been determined by the Transmission Provider
to be an Eligible Customer under the Tariff pursuant to which the
transmission service rights to be transferred were originally obtained.
    3.0 The terms and conditions for the transaction entered into under
this Service Agreement shall be subject to the terms and conditions of
Part II of the Transmission Provider's Tariff, except for those terms
and conditions negotiated by the Reseller of the reassigned
transmission capacity (pursuant to Section 23.1 of this Tariff) and the
Assignee, to include: contract effective and termination dates, the
amount of reassigned capacity or energy, point(s) of receipt and
delivery. Changes by the Assignee to the Reseller's Points of Receipt
and Points of Delivery will be subject to the provisions of Section
23.2 of this Tariff.
    4.0 The Transmission Provider shall credit the Reseller for the
price reflected in the Assignee's Service Agreement or the associated
OASIS schedule.
    5.0 Any notice or request made to or by either Party regarding this
Service Agreement shall be made to the representative of the other
Party as indicated below.
    Transmission Provider:

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    Assignee:

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    6.0 The Tariff is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement to
be executed by their respective authorized officials.

    Transmission Provider:

    By:
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Name
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Title
-----------------------------------------------------------------------

Date

    Assignee:
    By:
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Name
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Title
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Date

Specifications for the Resale, Reassignment, or Transfer of Long-Term
Firm Point-To-Point Transmission Service

1.0 Term of Transaction:-----------------------------------------------

Start Date:------------------------------------------------------------

Termination Date:------------------------------------------------------

2.0 Description of capacity and energy to be transmitted by
Transmission Provider including the electric Control Area in which the
transaction originates.------------------------------------------------

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3.0 Point(s) of Receipt:-----------------------------------------------

Delivering Party:------------------------------------------------------

4.0 Point(s) of Delivery:----------------------------------------------

Receiving Party:-------------------------------------------------------

5.0 Maximum amount of reassigned capacity:-----------------------------

6.0 Designation of party(ies) subject to reciprocal service obligation:

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7.0 Name(s) of any Intervening Systems providing transmission service:-

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    8.0 Service under this Agreement may be subject to some combination
of the charges detailed below. (The appropriate charges for individual
transactions will be determined in accordance with the terms and
conditions of the Tariff.)

8.1 Transmission Charge:-----------------------------------------------

8.2 System Impact and/or Facilities Study Charge(s):-------------------

8.3 Direct Assignment Facilities Charge:-------------------------------

8.4 Ancillary Services Charges:----------------------------------------
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    9.0 Name of Reseller of the reassigned transmission capacity:

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[FEDREG][VOL]*[/VOL][NO]*[/NO][DATE]*[/
DATE][RULES][RULE][PREAMB][AGENCY]*[/AGENCY][SUBJECT]*[/SUBJECT][/
PREAMB][SUPLINF][HED]*[/HED]Attachment B--Form of Service Agreement for
Non-Firm Point-To-Point Transmission Service

    1.0 This Service Agreement, dated as of --------, is entered into,
by and between -------- (the Transmission Provider), and --------
(Transmission Customer).
    2.0 The Transmission Customer has been determined by the
Transmission Provider to be a Transmission Customer under Part II of
the Tariff and has filed a Completed Application for Non-Firm Point-To-
Point Transmission Service in accordance with Section 18.2 of the
Tariff.
    3.0 Service under this Agreement shall be provided by the
Transmission Provider upon request by an authorized representative of
the Transmission Customer.
    4.0 The Transmission Customer agrees to supply information the
Transmission Provider deems reasonably necessary in accordance with
Good Utility Practice in order for it to provide the requested service.
    5.0 The Transmission Provider agrees to provide and the
Transmission Customer agrees to take and pay for Non-Firm Point-To-
Point Transmission Service in accordance with the provisions of Part II
of the Tariff and this Service Agreement.
    6.0 Any notice or request made to or by either Party regarding this
Service Agreement shall be made to the representative of the other
Party as indicated below.
    Transmission Provider:

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    Transmission Customer:

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    7.0 The Tariff is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement to
be executed by their respective authorized officials.

    Transmission Provider:

    By:
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Name

-----------------------------------------------------------------------

Title

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Date

    Transmission Customer:

    By:
-----------------------------------------------------------------------

Name

-----------------------------------------------------------------------

Title

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Date

Attachment C--Methodology To Assess Available Transfer Capability

    The Transmission Provider must include, at a minimum, the following
information concerning its ATC calculation methodology:
    (1) A detailed description of the specific mathematical algorithm
used to calculate firm and non-firm ATC (and AFC, if applicable) for
its scheduling horizon (same day and real-time), operating horizon (day
ahead and pre-schedule) and planning horizon (beyond the operating
horizon);
    (2) A process flow diagram that illustrates the various steps
through which ATC/AFC is calculated; and
    (3) A detailed explanation of how each of the ATC components is
calculated for both the operating and planning horizons.
    (a) For TTC, a Transmission Provider shall: (i) Explain its
definition of TTC; (ii) explain its TTC calculation methodology; (iii)
list the databases used in its TTC assessments; and (iv) explain the
assumptions used in its TTC assessments regarding load levels,
generation dispatch, and modeling of planned and contingency outages.
    (b) For ETC, a transmission provider shall explain: (i) Its
definition of ETC; (ii) the calculation methodology used to determine
the transmission capacity to be set aside for native load (including
network load), and non-OATT customers (including, if applicable, an
explanation of assumptions on the selection of generators that are
modeled in service); (iii) how point-to-point transmission service
requests are incorporated; (iv) how rollover rights are accounted for;
(v) its processes for ensuring that non-firm capacity is released
properly (e.g., when real-time schedules replace the associated
transmission service requests in its real-

time calculations); and (vi) describe the step-by-step modeling study
methodology and criteria for adding or eliminating flowgates (permanent
and temporary).
    (c) If a Transmission Provider uses an AFC methodology to calculate
ATC, it shall: (i) Explain its definition of AFC; (ii) explain its AFC
calculation methodology; (iii) explain its process for converting AFC
into ATC for OASIS posting; (iv) list the databases used in its AFC
assessments; and (v) explain the assumptions used in its AFC
assessments regarding load levels, generation dispatch, and modeling of
planned and contingency outages.
    (d) For TRM, a Transmission Provider shall explain: (i) Its
definition of TRM; (ii) its TRM calculation methodology (e.g., its
assumptions on load forecast errors, forecast errors in system topology
or distribution factors and loop flow sources); (iii) the databases
used in its TRM assessments; (iv) the conditions under which the
transmission provider uses TRM. A Transmission Provider that does not
set aside transfer capability for TRM must so state.
    (e) For CBM, the Transmission Provider shall include a specific and
self-contained narrative explanation of its CBM practice, including:
(i) An identification of the entity who performs the resource adequacy
analysis for CBM determination; (ii) the methodology used to perform
generation reliability assessments (e.g., probabilistic or
deterministic); (iii) an explanation of whether the assessment method
reflects a specific regional practice; (iv) the assumptions used in
this assessment; and (v) the basis for the selection of paths on which
CBM is set aside.
    (f) In addition, for CBM, a Transmission Provider shall: (i)
Explain its definition of CBM; (ii) list the databases used in its CBM
calculations; and (iii) demonstrate that there is no double-counting of
contingency outages when performing CBM, TTC, and TRM calculations.
    (g) The Transmission Provider shall explain its procedures for
allowing the use of CBM during emergencies (with an explanation of what
constitutes an emergency, the entities that are permitted to use CBM
during emergencies and the procedures which must be followed by the
transmission providers' merchant function and other load-serving
entities when they need to access CBM). If the Transmission Provider's
practice is not to set aside transfer capability for CBM, it shall so
state.

Attachment D--Methodology for Completing a System Impact Study

    To be filed by the Transmission Provider. [FEDREG][VOL]*[/
VOL][NO]*[/NO][DATE]*[/DATE][RULES][RULE][PREAMB][AGENCY]*[/
AGENCY][SUBJECT]*[/SUBJECT][/PREAMB][SUPLINF][HED]*[/HED]

Attachment E--Index of Point-To-Point Transmission Service Customers

Customer Date of Service Agreement

Attachment F--Service Agreement for Network Integration Transmission
Service

    To be filed by the Transmission Provider.

Attachment G--Network Operating Agreement

    To be filed by the Transmission Provider.

Attachment H--Annual Transmission Revenue Requirement for Network
Integration Transmission Service

    1. The Annual Transmission Revenue Requirement for purposes of the
Network Integration Transmission Service shall be ------.
    2. The amount in (1) shall be effective until amended by the
Transmission Provider or modified by the Commission.

Attachment I--Index of Network Integration Transmission Service
Customers

Customer Date of Service Agreement

Attachment J--Procedures for Addressing Parallel Flows

    To be filed by the Transmission Provider.[FEDREG][VOL]*[/
VOL][NO]*[/NO][DATE]*[/DATE][RULES][RULE][PREAMB][AGENCY]*[/
AGENCY][SUBJECT]*[/SUBJECT][/PREAMB][SUPLINF][HED]*[/HED]

Attachment K--Transmission Planning Process

    The Transmission Provider shall establish a coordinated, open and
transparent planning process with its Network and Firm Point-to-Point
Transmission Customers and other interested parties, including the
coordination of such planning with interconnected systems within its
region, to ensure that the Transmission System is planned to meet the
needs of both the Transmission Provider and its Network and Firm Point-
to-Point Transmission Customers on a comparable and nondiscriminatory
basis. The Transmission Provider's coordinated, open and transparent
planning process shall be provided as an attachment to the Transmission
Provider's Tariff.
    The Transmission Provider's planning process shall satisfy the
following nine principles, as defined in the Final Rule in Docket No.
RM05-25-000: coordination, openness, transparency, information
exchange, comparability, dispute resolution, regional participation,
economic planning studies, and cost allocation for new projects. The
planning process shall also provide a mechanism for the recovery and
allocation of planning costs consistent with the Final Rule in Docket
No. RM05-25-000.
    The Transmission Provider's planning process must include
sufficient detail to enable Transmission Customers to understand:
    (i) The process for consulting with customers and neighboring
transmission providers;
    (ii) The notice procedures and anticipated frequency of meetings;
    (iii) The methodology, criteria, and processes used to develop
transmission plans;
    (iv) The method of disclosure of criteria, assumptions and data
underlying transmission system plans;
    (v) The obligations of and methods for customers to submit data to
the transmission provider;
    (vi) The dispute resolution process;
    (vii) The transmission provider's study procedures for economic
upgrades to address congestion or the integration of new resources; and
    (viii) The relevant cost allocation procedures or principles.

Attachment L--Creditworthiness Procedures

    For the purpose of determining the ability of the Transmission
Customer to meet its obligations related to service hereunder, the
Transmission Provider may require reasonable credit review procedures.
This review shall be made in accordance with standard commercial
practices and must specify quantitative and qualitative criteria to
determine the level of secured and unsecured credit.
    The Transmission Provider may require the Transmission Customer to
provide and maintain in effect during the term of the Service
Agreement, an unconditional and irrevocable letter of credit as
security to meet its responsibilities and obligations under the Tariff,
or an alternative form of security proposed by the Transmission
Customer and acceptable to the Transmission Provider and consistent
with commercial practices established by the Uniform Commercial Code
that protects the Transmission Provider against the risk of non-
payment.
    Additionally, the Transmission Provider must include, at a minimum,
the following information concerning its creditworthiness procedures:
    (1) A summary of the procedure for determining the level of secured
and unsecured credit;

    (2) A list of the acceptable types of collateral/security;
    (3) A procedure for providing customers with reasonable notice of
changes in credit levels and collateral requirements;
    (4) A procedure for providing customers, upon request, a written
explanation for any change in credit levels or collateral requirements;
    (5) A reasonable opportunity to contest determinations of credit
levels or collateral requirements; and
    (6) A reasonable opportunity to post additional collateral,
including curing any non-creditworthy determination.

[FR Doc. E8-144 Filed 1-15-08; 8:45 am]

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[Federal Register Volume 86, Number 45 (Wednesday, March 10, 2021)]
[Proposed Rules]
[Pages 13670-13671]
[FR Doc No: 2021-04820]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2021-0113; Airspace Docket No. 21-AEA-2]
RIN 2120-AA66

Proposed Establishment of Class E Airspace; Doylestown, PA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to establish Class E airspace extending
upward from 700 feet above the surface for Doylestown Airport,
Doylestown, PA, to accommodate area navigation (RNAV) global
positioning system (GPS) standard instrument approach procedures
(SIAPs) serving this airport. Controlled airspace is necessary for the
safety and management of instrument flight rules (IFR) operations in
the area.

DATES: Comments must be received on or before April 26, 2021.

ADDRESSES: Send comments on this proposal to: the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, Washington, DC 20590-0001;
Telephone:<PHONE_NUMBER>, or<PHONE_NUMBER>. You must identify the
Docket No. FAA-2021-0113; Airspace Docket No. 21-AEA-2 at the beginning
of your comments. You may also submit comments through the internet at
https://www.regulations.gov.
    FAA Order 7400.11E Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; Telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11E at NARA, email<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, 1701
Columbia Avenue, College Park, GA 30337; Telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority,
as it would establish Class E airspace for Doylestown Airport,
Doylestown, PA, to support IFR operations in the area.

Comments Invited

    Interested persons are invited to comment on this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (Docket No. FAA-
2021-0113 and Airspace Docket No. 21-AEA-2) and be submitted in
triplicate to DOT Docket Operations (see ``ADDRESSES'' section for the
address and phone number). You may also submit comments through the
internet at https://www.regulations.gov.
    Persons wishing the FAA to acknowledge receipt of their comments on
this action must submit with those comments a self-addressed stamped
postcard on which the following statement is made: ``Comments to FAA
Docket No. FAA-2021-0113; Airspace Docket No. 21-AEA-2.'' The postcard
will be date/time stamped and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this document may be changed in light of the
comments received. All comments submitted will be available for
examination in the public docket both before and after the comment
closing date. A report summarizing each substantive public contact with
FAA personnel concerned

with this rulemaking will be filed in the docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at https://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received and any final disposition in person in the Dockets
Office (see the ADDRESSES section for address and phone number) between
9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined between 8:00 a.m. and
4:30 p.m., Monday through Friday, except federal holidays at the office
of the Eastern Service Center, Federal Aviation Administration, Room
350, 1701 Columbia Avenue, College Park, GA 30337.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11E, Airspace
Designations and Reporting Points, dated July 21, 2020, and effective
September 15, 2020. FAA Order 7400.11E is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11E lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA proposes an amendment to 14 CFR part 71 to establish Class
E airspace extending upward from 700 feet above the surface at
Doylestown Airport, Doylestown, PA, providing the controlled airspace
required to support RNAV (GPS) standard instrument approach procedures
for IFR operations at this airport.
    Class E airspace designations are published in Paragraph 6005, of
FAA Order 7400.11E, dated July 21, 2020, and effective September 15,
2020, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designations listed in this document will be published
subsequently in the Order.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a Regulatory Evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this proposed rule, when promulgated, will not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'', prior to any FAA final regulatory action.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.11E, Airspace Designations and Reporting
Points, dated July 21, 2020, and effective September 15, 2020, is
amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AEA PA E5 Doylestown, PA [New]

    Doylestown Airport, PA
    (Lat. 40[deg]19'59'' N, long. 75[deg]07'20'' W)

    That airspace extending upward from 700 feet above the surface
within a 7.6-mile radius of Doylestown Airport, and within 3.9 miles
each side of the 050[deg] bearing from the airport, extending from
the 7.6-mile radius to 13.8 miles northeast of the airport.

    Issued in College Park, Georgia, on March 3, 2021.
Andreese C. Davis,
Manager, Airspace & Procedures Team South, Eastern Service Center, Air
Traffic Organization.
[FR Doc. 2021-04820 Filed 3-9-21; 8:45 am]
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