Embed Size (px)
Citation preview
Regional Tariff Working Group
August 22 – 23, 2012
Page 1 of 2
Southwest Power Pool REGIONAL TARIFF WORKING GROUP
8th Floor Conference Room Renaissance Tower (AEP Offices) – Dallas, TX
August 22, 2012 1:00 P.M. – 5:00 P.M.
-MINUTES- Agenda Item 1 – Call to Order, Introductions and Receipt of Proxies Chair Dennis Reed called the meeting to order at 1:02 P.M. on August 22, 2012, and asked for a round of introductions. There were twenty-three persons in attendance either in person or via phone (Attachment 1 – Attendance 8-22-2012). One proxy was reported (Attachment 3 – Proxy.) Agenda Item 2 – Review of Agenda and Additional Agenda Items Chair Dennis Reed asked if there were any changes or additions to be made to the agenda. No changes or additions were requested. . Agenda Item 3 – Order 1000 Tariff Draft Discussion Tom Littleton, OMPA, questioned terms “Application TO” and “Qualified TO”. Matt Binette, Wright & Talisman, and Chair Reed agreed to revisit and determine different naming conventions. Tom Hestermann directed question to Matt Binette, Wright and Talisman, concerning state laws that have a ROFR exception. Matt replied it would depend on how the state law is written. Matt Binette facilitated the discussion of Order 1000 draft language. The group resumed its review of Order 1000 Tariff Draft beginning with Attachment Y, Section III.2 – Transmission Owner Selection Process. Revisions were made in Section III.2(b), (c) and (d). (Attachment RTWG concluded their review with Section III.2(d)(iii). Agenda Item 4 – Day 1 Adjournment Chair Reed adjourned the meeting at 4:47 P.M. on August 22, 2012, to reconvene at 8:30 A.M. on August 23, 2012.
Regional Tariff Working Group
August 22 – 23, 2012
Page 2 of 2
Southwest Power Pool REGIONAL TARIFF WORKING GROUP
8th Floor Conference Room Renaissance Tower (AEP Offices) – Dallas, TX
August 23, 2012 8:30 AM. – 2:00 P.M.
-MINUTES- Call to Order & Introductions, Receipt of Proxies Chair Dennis Reed called the meeting of the RTWG to order at 8:34 A.M. on August 23, 2012. There were twenty-four persons in attendance either in person or via phone (Attachment 2 – RTWG Attendance 8-23-2012). One proxy was reported (Attachment 3 – Proxy). Agenda Item 5 – Order 1000 Tariff Draft Review (Continued from August 22, 2012) Chair Reed began discussion with the renaming of terms ATO to “Applicant” and QTO to “Qualified Participant”. Matt Binette will review other tariff provisions to ensure the new terms are acceptable. Matt resumed the discussion of Order 1000 Tariff language beginning Section III.2 (d).(iii) RFP Process and Timeline. (Attachment 5 – Draft Tariff Language for Order 1000 – RTWG Revised 8-22-2012) Revisions were made in Section III.2 (d), Section III.2 (e), Section III.2 (f) and Section III.2 (g). Agenda Item 6 – Future Meetings September 5-6, 2012 – Dallas, Texas (1:00 P.M. – 5:00 P.M.; 8:30 A.M. – 2:00 P.M.) September 26-27, 2012 – Dallas, Texas (1:00 P.M. – 5:00 P.M.; 8:30 A.M. – 2:00 P.M.) Agenda Item 7 – Adjournment
Chair Reed adjourned the meeting at 1:53 P.M. on August 23, 2012.
Respectively Submitted, Brenda Fricano RTWG Acting Secretary
Regional Tariff Working Group Meeting
August 22, 2012
Last Name First Name
Company Email Attend
Members
Andrysik Richard LES [email protected]
Dowling Bill Midwest Energy, Inc. [email protected]
Haner Luke Omaha Public Power District [email protected]
Hestermann Tom Sunflower Electric Power Corp. [email protected] X
Janssen Rob Dogwood Energy [email protected]
Kays David Oklahoma Gas & Electric [email protected] X
Kolb Lloyd Golden Spread Electric
Cooperative [email protected]
Leopold Brett ITC Great Plains [email protected]
Littleton Tom OMPA [email protected]
Liu Bernard Xcel Energy [email protected] X
Locke Charles Kansas City Power & Light
Company [email protected] X
Malone Paul NPPD [email protected]
McKinnie Adam MoPSC [email protected]
Pennybaker Robert American Electric Power [email protected]
Reed Dennis Westar Energy [email protected] X
Rowland Neil Kansas Municipal Energy Agency
Shields Robert Arkansas Electric Cooperative
Corporation [email protected]
Tynes Keith ETEC [email protected] X
Varnell John Tenaska Power
Services [email protected] X
Warren Bary Empire District [email protected]
Williams Mitchell Western Farmers Electric
Cooperative [email protected]
Polk Susan Southwest Power Pool [email protected] X
Fricano Brenda Southwest Power Pool [email protected] X
Observers
Alexander Eric GRDA [email protected]
Anderson Gene OMPA
Atwood Jason Kelson Energy [email protected]
Ayers-Brasher
Jennifer EON [email protected]
Bates Kevin Southwest Power Pool [email protected]
Binette Matt Wright & Talisman [email protected] X
Blaylock Jeff Hilliard Energy
Last Name First
Name Company Email Attend
Brinker Kathleen Nemaha-Marshall [email protected]
Brown Seth ETEC
Brown Shari Southwest Power Pool [email protected]
Bruse Jannsen KMEA [email protected]
Bumgarner Carrie Wright & Talisman [email protected]
Burns Kevin [email protected]
Busbee Alfred Southwest Power Pool [email protected]
Camp Wayne Accenture [email protected]
Campbell Trent Oklahoma Corporation
Commission [email protected]
Cates Charles Southwest Power Pool [email protected]
Cathey Casey Southwest Power Pool [email protected]
Cecil Walt MoPSC [email protected] X
Charles David Basin Electric Power Coop
Choate Marisa Southwest Power Pool [email protected]
Collins Doug OPPD [email protected]
Collins Jessica Xcel Energy
Coventry Geoff
Cripps Matthew Cleco Power, LLC [email protected]
Crissup Phil OGE [email protected]
Cude Bruce Xcel Energy [email protected]
Daney Neal KMEA
D’Antuono Michelle Occidental [email protected]
Davis Jason Southwest Power Pool [email protected]
Davis Steve Southwest Power Pool [email protected]
DeBaun Tom KCC [email protected]
deLassus Patrick Southwest Power Pool [email protected]
Dobson Alex OMPA [email protected]
Dunn Tom Southwest Power Pool [email protected]
Eeg Justin Tenaska
Elmore Mitch Xcel Energy [email protected]
Emanuel Kelly Empire District [email protected]
Emery Beth Sunflower / MKEC [email protected]
Evans Les KepCo [email protected]
Foreman Mark Tenaska [email protected]
Fortik Jason LES [email protected]
Fox Kip AEP [email protected]
Fulton John SPS [email protected]
Gallup Terri AEP [email protected]
Gaw Steve Wind Coalition [email protected]
Gay Ryan Southwest Power Pool [email protected]
Giessmann Dena Southwest Power Pool [email protected]
Ghomsi Noumvi MoPSC [email protected]
Gillespie Randy Kelson Energy [email protected]
Grace Gene AWEA [email protected]
Greenwalt Jared Southwest Power Pool [email protected]
Last Name First
Name Company Email Attend
Guidroz Jim Southwest Power Pool [email protected]
Gulley Don SECI [email protected]
Gunesch John Retired OGE [email protected]
Hackett David KEMA [email protected]
Hadlinda Harold NPPD [email protected]
Hamilton Sherry Southwest Power Pool [email protected]
Hammons Ed GRDA [email protected]
Harrigill Ryan Southwest Power Pool [email protected]
Harris Brenda Occidental [email protected]
Hartman Dan [email protected]
Harvey John John Deere Wind Energy [email protected]
Harward Matt Southwest Power Pool [email protected]
Hocker Geoff Contractor, Southwestern
Power Administration [email protected]
Hayes Alison Southwest Power Pool [email protected]
Hendrix Charles Southwest Power Pool [email protected]
Henry Cynthia Xcel Energy [email protected]
Helyer Scott Tenaska [email protected]
Hewitt Douglas KCPL [email protected]
Holloway Larry Kansas Power Pool (KPP) [email protected]
Holtan Archie C.H. Guernsey Engineers [email protected]
Horak Frank Astek Wind Energy [email protected]
Hossain Shah Westar Energy, Inc [email protected]
Hotovy Jim NPPD [email protected]
Hulett Rachel Southwest Power Pool [email protected]
Hyatt John Southwest Power Pool [email protected]
Jackson Mitch Southwest Power Pool [email protected]
James Debbie Southwest Power Pool [email protected]
Jamieson Chris Duke Energy [email protected]
Jones Chris Duke Energy [email protected]
Jones Dan Southwest Power Pool [email protected]
Kapur Virat EPE Consulting [email protected]
Kelly George Accenture [email protected]
Kelly Patti Southwest Power Pool [email protected]
Kentner Tessie Southwest Power Pool [email protected]
Kirby Joshua WFEC
Krajecki Jim CES [email protected]
Langdon Jon Southwest Power Pool [email protected]
Lima Luciano FERC [email protected]
Linton David ITC Great Plains [email protected] X
Lucas Antoine Southwest Power Pool [email protected]
Mahlberg Paul INDN [email protected]
Martino Omar Res Americas [email protected]
McCord Rick Empire District [email protected]
McCraw Phil Southwest Power Pool [email protected]
McGeeney Chris AECI [email protected]
McNeil Nathan Midwest Energy, Inc. [email protected]
Last Name First
Name Company Email Attend
Mena Hugo Electric Power Engineers [email protected]
Meringolo Ken CPV Cimmaron [email protected]
Miller Beth Accenture [email protected]
Miller Brittney Arkansas PSC [email protected]
Mills John Southwest Power Pool [email protected]
Monroe Carl Southwest Power Pool [email protected]
Mooney Catherine Southwest Power Pool [email protected]
Moore Matt GSEC
Morze Sarah FERC [email protected]
Mosier Pat APSC [email protected]
Mushrush Mike OMPA
Myers Alan ITC Great Plains [email protected]
Newell Gary LAFA Counsel
Noailles Liam Xcel Energy [email protected]
Ohmes Jerry BPU [email protected]
Onnen Katy KCPL [email protected]
Osburn Dave OMPA [email protected]
Patel Purvi ITC Great Plains [email protected]
Payton Tom Occidental [email protected]
Pemberton Terri [email protected]
Prewitt Katherine Southwest Power Pool [email protected]
Purdy Steve Southwest Power Pool [email protected]
Quinn Susan Westar Energy [email protected]
Redden Ronda Oklahoma Gas & Electric [email protected]
Reed Wendy Wright and Talisman [email protected]
Reid Bill Oklahoma Corporation
Commission [email protected]
Resca Michael Competitive Power Ventures
Ried David OPPD [email protected]
Rodriguez Kristen Electric Power Engineers [email protected]
Rome Aaron Midwest Energy [email protected]
Ross Richard American Electric Power [email protected]
Rossi Mark Accenture [email protected]
Russell Joe OGE [email protected]
Safuto Robert CES [email protected]
Sailors Margaret OPPD [email protected]
Samson Eric Southwest Power Pool [email protected]
Sanderson Jim Kansas Corporation
Commission
Savage Dave RES Americas [email protected]
Savoy Clint Southwest Power Pool [email protected]
Scott Ann Tenaska [email protected]
Seck John KMEA [email protected]
Shipley Aaron Southwest Power Pool [email protected]
Shumate Walt Shumate & Associates [email protected]
Simpson Carrie Southwest Power Pool [email protected]
Smith Patrick Westar Energy [email protected]
Last Name First
Name Company Email Attend
Smith Richard Electric Power Engineers [email protected]
Smith Roger Schiff Hardin
Spector Barry Wright and Talisman [email protected]
Sunderman Derek [email protected]
Switzer Christina FERC [email protected]
Sundman Roy Training and Support
Services, Inc. [email protected]
Suskie Paul Southwest Power Pool [email protected]
Taylor Al ETEC [email protected]
Thompson Ron NPPD
Thumm Brian ITC Holdings [email protected]
Tumilty Bob American Electric Power [email protected]
Wagner Nicole Southwest Power Pool [email protected]
Walker Richard Sustainable Energy
Strategies, Inc
Walker Robert Cargilll [email protected]
Weatherford Jennifer GRDA [email protected]
Wendelgass Paul CPV [email protected]
Williams James Invenergy [email protected]
Williams Noman SECI [email protected]
Wilson Bryn Oklahoma Gas & Electric [email protected]
Wilson Gina ITC Transco [email protected]
Womack Jimmy Southwest Power Pool [email protected]
Wrenbeck Thomas ITC Great Plains [email protected]
Regional Tariff Working Group Meeting
August 23, 2012
Last Name First Name
Company Email Attend
Members
Andrysik Richard LES [email protected]
Dowling Bill Midwest Energy, Inc. [email protected]
Haner Luke Omaha Public Power District [email protected]
Hestermann Tom Sunflower Electric Power Corp. [email protected] x
Janssen Rob Dogwood Energy [email protected]
Kays David Oklahoma Gas & Electric [email protected] x
Kolb Lloyd Golden Spread Electric
Cooperative [email protected] x
Leopold Brett ITC Great Plains [email protected]
Littleton Tom OMPA [email protected]
Liu Bernard Xcel Energy [email protected] x
Locke Charles Kansas City Power & Light
Company [email protected] x
Malone Paul NPPD [email protected]
McKinnie Adam MoPSC [email protected]
Pennybaker Robert American Electric Power [email protected]
Reed Dennis Westar Energy [email protected] x
Rowland Neil Kansas Municipal Energy Agency
Shields Robert Arkansas Electric Cooperative
Corporation [email protected]
Tynes Keith ETEC [email protected] x
Varnell John Tenaska Power
Services [email protected]
Warren Bary Empire District [email protected]
Williams Mitchell Western Farmers Electric
Cooperative [email protected]
Polk Susan Southwest Power Pool [email protected] x
Fricano Brenda Southwest Power Pool [email protected] x
Observers
Alexander Eric GRDA [email protected]
Anderson Gene OMPA
Atwood Jason Kelson Energy [email protected]
Ayers-Brasher
Jennifer EON [email protected]
Bates Kevin Southwest Power Pool [email protected]
Binette Matt Wright & Talisman [email protected] x
Blaylock Jeff Hilliard Energy
Last Name First
Name Company Email Attend
Brinker Kathleen Nemaha-Marshall [email protected]
Brown Seth ETEC
Brown Shari Southwest Power Pool [email protected]
Bruse Jannsen KMEA [email protected]
Bumgarner Carrie Wright & Talisman [email protected]
Burns Kevin [email protected]
Busbee Alfred Southwest Power Pool [email protected]
Camp Wayne Accenture [email protected]
Campbell Trent Oklahoma Corporation
Commission [email protected]
Cates Charles Southwest Power Pool [email protected]
Cathey Casey Southwest Power Pool [email protected]
Cecil Walt MoPSC [email protected] x
Charles David Basin Electric Power Coop
Choate Marisa Southwest Power Pool [email protected]
Collins Doug OPPD [email protected]
Collins Jessica Xcel Energy
Coventry Geoff
Cripps Matthew Cleco Power, LLC [email protected]
Crissup Phil OGE [email protected]
Cude Bruce Xcel Energy [email protected] x
Daney Neal KMEA
D’Antuono Michelle Occidental [email protected]
Davis Jason Southwest Power Pool [email protected]
Davis Steve Southwest Power Pool [email protected]
DeBaun Tom KCC [email protected]
deLassus Patrick Southwest Power Pool [email protected]
Dobson Alex OMPA [email protected]
Dunn Tom Southwest Power Pool [email protected]
Eeg Justin Tenaska
Elmore Mitch Xcel Energy [email protected]
Emanuel Kelly Empire District [email protected]
Emery Beth Sunflower / MKEC [email protected]
Evans Les KepCo [email protected]
Foreman Mark Tenaska [email protected]
Fortik Jason LES [email protected]
Fox Kip AEP [email protected]
Fulton John SPS [email protected]
Gallup Terri AEP [email protected]
Gaw Steve Wind Coalition [email protected]
Gay Ryan Southwest Power Pool [email protected]
Giessmann Dena Southwest Power Pool [email protected]
Ghomsi Noumvi MoPSC [email protected]
Gillespie Randy Kelson Energy [email protected]
Grace Gene AWEA [email protected]
Greenwalt Jared Southwest Power Pool [email protected]
Last Name First
Name Company Email Attend
Guidroz Jim Southwest Power Pool [email protected]
Gulley Don SECI [email protected]
Gunesch John Retired OGE [email protected]
Hackett David KEMA [email protected]
Hadlinda Harold NPPD [email protected]
Hamilton Sherry Southwest Power Pool [email protected]
Hammons Ed GRDA [email protected]
Harrigill Ryan Southwest Power Pool [email protected]
Harris Brenda Occidental [email protected]
Hartman Dan [email protected]
Harvey John John Deere Wind Energy [email protected]
Harward Matt Southwest Power Pool [email protected]
Hocker Geoff Contractor, Southwestern
Power Administration [email protected]
Hayes Alison Southwest Power Pool [email protected]
Hendrix Charles Southwest Power Pool [email protected]
Henry Cynthia Xcel Energy [email protected]
Helyer Scott Tenaska [email protected]
Hewitt Douglas KCPL [email protected]
Holloway Larry Kansas Power Pool (KPP) [email protected]
Holtan Archie C.H. Guernsey Engineers [email protected]
Horak Frank Astek Wind Energy [email protected]
Hossain Shah Westar Energy, Inc [email protected]
Hotovy Jim NPPD [email protected]
Hulett Rachel Southwest Power Pool [email protected]
Hyatt John Southwest Power Pool [email protected]
Jackson Mitch Southwest Power Pool [email protected]
James Debbie Southwest Power Pool [email protected]
Jamieson Chris Duke Energy [email protected]
Jones Chris Duke Energy [email protected]
Jones Dan Southwest Power Pool [email protected]
Kapur Virat EPE Consulting [email protected]
Kelly George Accenture [email protected]
Kelly Patti Southwest Power Pool [email protected]
Kentner Tessie Southwest Power Pool [email protected]
Kirby Joshua WFEC
Krajecki Jim CES [email protected]
Langdon Jon Southwest Power Pool [email protected]
Lima Luciano FERC [email protected]
Linton David ITC Great Plains [email protected] x
Lucas Antoine Southwest Power Pool [email protected]
Mahlberg Paul INDN [email protected]
Martino Omar Res Americas [email protected]
McCord Rick Empire District [email protected]
McCraw Phil Southwest Power Pool [email protected]
McGeeney Chris AECI [email protected]
McNeil Nathan Midwest Energy, Inc. [email protected]
Last Name First
Name Company Email Attend
Mena Hugo Electric Power Engineers [email protected]
Meringolo Ken CPV Cimmaron [email protected]
Miller Beth Accenture [email protected]
Miller Brittney Arkansas PSC [email protected]
Mills John Southwest Power Pool [email protected]
Monroe Carl Southwest Power Pool [email protected]
Mooney Catherine Southwest Power Pool [email protected]
Moore Matt GSEC
Morze Sarah FERC [email protected]
Mosier Pat APSC [email protected]
Mushrush Mike OMPA
Myers Alan ITC Great Plains [email protected]
Newell Gary LAFA Counsel
Noailles Liam Xcel Energy [email protected]
Ohmes Jerry BPU [email protected]
Onnen Katy KCPL [email protected]
Osburn Dave OMPA [email protected]
Patel Purvi ITC Great Plains [email protected]
Payton Tom Occidental [email protected]
Pemberton Terri [email protected]
Prewitt Katherine Southwest Power Pool [email protected]
Purdy Steve Southwest Power Pool [email protected]
Quinn Susan Westar Energy [email protected]
Redden Ronda Oklahoma Gas & Electric [email protected]
Reed Wendy Wright and Talisman [email protected]
Reid Bill Oklahoma Corporation
Commission [email protected]
Resca Michael Competitive Power Ventures
Ried David OPPD [email protected]
Rodriguez Kristen Electric Power Engineers [email protected]
Rome Aaron Midwest Energy [email protected]
Ross Richard American Electric Power [email protected]
Rossi Mark Accenture [email protected]
Russell Joe OGE [email protected]
Safuto Robert CES [email protected]
Sailors Margaret OPPD [email protected]
Samson Eric Southwest Power Pool [email protected]
Sanderson Jim Kansas Corporation
Commission
Savage Dave RES Americas [email protected]
Savoy Clint Southwest Power Pool [email protected]
Scott Ann Tenaska [email protected]
Seck John KMEA [email protected]
Shipley Aaron Southwest Power Pool [email protected]
Shumate Walt Shumate & Associates [email protected]
Simpson Carrie Southwest Power Pool [email protected]
Smith Patrick Westar Energy [email protected]
Last Name First
Name Company Email Attend
Smith Richard Electric Power Engineers [email protected]
Smith Roger Schiff Hardin
Spector Barry Wright and Talisman [email protected]
Sunderman Derek [email protected]
Switzer Christina FERC [email protected]
Sundman Roy Training and Support
Services, Inc. [email protected]
Suskie Paul Southwest Power Pool [email protected]
Taylor Al ETEC [email protected]
Thompson Ron NPPD
Thumm Brian ITC Holdings [email protected]
Tumilty Bob American Electric Power [email protected]
Wagner Nicole Southwest Power Pool [email protected]
Walker Richard Sustainable Energy
Strategies, Inc
Walker Robert Cargilll [email protected]
Weatherford Jennifer GRDA [email protected]
Wendelgass Paul CPV [email protected]
Williams James Invenergy [email protected]
Williams Noman SECI [email protected]
Wilson Bryn Oklahoma Gas & Electric [email protected]
Wilson Gina ITC Transco [email protected]
Womack Jimmy Southwest Power Pool [email protected]
Wrenbeck Thomas ITC Great Plains [email protected]
From: "Leopold, Brett" <[email protected]> To: "[email protected]" <[email protected]>, "Linton, David C." <[email protected]>, Date: 08/22/2012 12:02 PM Subject: Proxy ________________________________________ Dennis- David Linton has my proxy for the RTWG meeting today and tomorrow. Brett Leopold Connected by DROID on Verizon Wireless ________________________________ Please consider the planet before you print.
Draft Tariff Revisions for Order No. 1000 Compliance
Order No. 1000 Draft Tariff Task Force
August 17, 2012
For Discussion during August 22-23, 2012 RTWG Meeting
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 1
D - Definitions
Delivering Party: The entity supplying capacity and energy to be transmitted at Point(s)
of Receipt.
Delivery Point Transfer: The transfer of responsibility for serving an existing delivery
point from one Network Customer or Transmission Customer to a different Network
Customer or Transmission Customer.
Designated Agent: Any entity that performs actions or functions required under the
Tariff on behalf of the Transmission Provider, a Transmission Owner, an Eligible
Customer, or the Transmission Customer.
Designated Resource: Any designated generation resource owned, purchased or leased
by a Transmission Customer to serve load in the SPP Region. Designated Resources do
not include any resource, or any portion thereof, that is committed for sale to third parties
or otherwise cannot be called upon to meet the Transmission Customer's load on a non-
interruptible basis.
Designated Transmission Owner (“DTO”): A Transmission Owner that has been
designated by the Transmission Provider pursuant to Attachment Y of this Tariff to
construct a transmission project and has accepted such designation.
Directly Assigned Upgrade Costs: An Eligible Customer’s share of the cost of a
Service Upgrade or a Project Sponsor’s share of the cost of a Sponsored Upgrade,
determined in accordance with Attachments J and Z1, including: (i) any costs directly
assigned to an Eligible Customer for a Service Upgrade in excess of the normally
applicable transmission access charges for the associated transmission service; (ii) any
costs directly assigned to an Eligible Customer that are in excess of the Safe Harbor Cost
Comment [s1]: RTWG 8-8-12: May revisit this definition. Having accepted the NTC?
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 2
Limit for Service Upgrades associated with new or changed Designated Resource; and
(iii) any costs directly assigned to a Project Sponsor for a Sponsored Upgrade.
Direct Assignment Facilities: Facilities or portions of facilities that are constructed by
any Transmission Owner(s) for the sole use/benefit of a particular Transmission
Customer or a particular group of customers or a particular Generation Interconnection
Customer requesting service under the Tariff. Direct Assignment Facilities shall be
specified in the Service Agreements that govern service to the Transmission Customer(s)
and Generation Interconnection Customer(s) and shall be subject to Commission
approval.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 3
N - Definitions
Native Load Customers: The wholesale and retail power customers of the Transmission
Owner(s) on whose behalf the Transmission Owner(s), by statute, franchise, regulatory
requirement, or contract, has (have) undertaken an obligation to construct or operate the
Transmission Owner's(s') system(s) to meet the reliable electric needs of such customers.
In addition, Native Load Customers also may include the customers of the Federal
Government on whose behalf the Government, by policy, statute, regulatory requirement,
or contract, delivers Federal capacity and energy to meet all or a portion of the reliable
electric needs of such customers.
Network Customer: An entity receiving transmission service pursuant to the terms of
the Transmission Provider's Network Integration Transmission Service under Part III of
the Tariff.
Network Integration Transmission Service: The transmission service provided under
Part III of the Tariff.
Network Load: The load that a Network Customer designates for Network Integration
Transmission Service under Part III of the Tariff. The Network Customer's Network
Load shall include all load served by the output of any Network Resources designated by
the Network Customer. A Network Customer may elect to designate less than its total
load as Network Load but may not designate only part of the load at a discrete Point of
Delivery. Where 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.
Network Operating Agreement: An executed agreement that contains the terms and
conditions under which the Network Customer shall operate its facilities and the technical
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 4
and operational matters associated with the implementation of Network Integration
Transmission Service under Part III of the Tariff.
Network Resource: Any designated generating resource owned, purchased or leased by
a Network Customer under the Network Integration Transmission Service Tariff.
Network Resources do not include any resource, or any portion thereof, that is committed
for sale to third parties or otherwise cannot be called upon to meet the Network
Customer's Network Load on a non-interruptible basis, except for purposes of fulfilling
obligations under a reserve sharing program.
Network Upgrades: All or a portion of the modifications or additions to transmission-
related facilities that are integrated with and support the Transmission Provider's overall
Transmission System for the general benefit of all Users of such Transmission System.
Next-Hour-Market Service: Non-firm transmission service that (a) is reserved for one
clock hour and (b) is requested within sixty (60) minutes before the start of the next clock
hour for service commencing at the start of that clock hour.
Non-Firm Point-To-Point Transmission Service: Point-To-Point Transmission
Service under the Tariff that is reserved and scheduled on an as-available basis and is
subject to Curtailment or Interruption as set forth in Section 14.7 under Part II of this
Tariff. Non-Firm Point-To-Point Transmission Service is available on a stand-alone
basis for periods ranging from one hour to one month.
Non-Firm Sale: An energy sale for which receipt or delivery may be interrupted for any
reason or no reason, without liability on the part of either the buyer or seller.
Notification to Construct (“NTC”): A written notice from the Transmission Provider
directing an entity that has been selected to construct one or more transmission projects in
accordance with Attachment Y to begin implementation of the transmission project(s).
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 5
O - Definitions
Open Access Same-Time Information System (OASIS): The information system and
standards of conduct contained in Part 37 of the Commission's regulations and all additional
requirements implemented by subsequent Commission orders dealing with OASIS.
Oversight Committee: The Oorganizational Ggroup defined in Section 6.4 of the SPP
Bylaws.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 6
T - Definitions
Third-Party Sale: Any sale for resale in interstate commerce to a Power Purchaser that
is not designated as part of Network Load under the Network Integration Transmission
Service.
Transition Period: The period from the Effective Date of this Tariff for the provision of
Network Integration Transmission Service to the last day of the fifth year thereafter. The
Transition Period for a Member that is a Nebraska public-power entity shall be the period
from the effective date of the transfer of functional control to the last day of the fifth year
thereafter.
Transmission Customer: Any Eligible Customer (or its Designated Agent) that (i)
executes a Service Agreement, or (ii) requests in writing that the Transmission Provider
file with the Commission, a proposed unexecuted Service Agreement to receive
transmission service under Part II of the Tariff. This term is used in the Part I Common
Service Provisions to include customers receiving transmission service under Part II and
Part III of this Tariff.
Transmission Owner: Each Member of SPP which has executed an SPP Membership
Agreement as a Transmission Owner and has the obligation to construct, own, operate,
and maintain transmission facilities as directed by SPP, and: (i) whose Tariff facilities (in
whole or in part) make up the Transmission System or (ii) who has accepted an NTC
from SPP an assignment (notification to construct pursuant to Attachment O) to build
and own transmission facilities but does not yet own transmission facilities under SPP’s
functional control; and (ii) has executed an SPP Membership Agreement as a
Transmission Owner. Those Transmission Owners that are not regulated by the
Commission shall not become subject to Commission regulation by virtue of their status
as Transmission Owners under this Tariff; provided, however, that service over their
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 7
facilities classified as transmission and covered by the Tariff shall be subject to
Commission regulation.
Transmission Provider: The Southwest Power Pool, Inc., as agent for and on behalf of
the Transmission Owners.
Transmission Provider's Monthly Transmission System Peak: The maximum firm
usage of the Transmission Provider's Transmission System in a calendar month.
Transmission Service: Point-To-Point Transmission Service provided under Part II of
the Tariff on a firm and non-firm basis.
Transmission System: The facilities used by the Transmission Provider to provide
transmission service under Part II, Part III and Part IV of the Tariff.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 8
ATTACHMENT O
TRANSMISSION PLANNING PROCESS
[EXCERPTED]
VI. Construction of Transmission Facilities
1) The Transmission Provider shall not build or own transmission facilities. In
accordance with Sections VI of this Attachment O and Attachment Y of this
Tariff, tThe Transmission Provider, with input from the Transmission Owners and
other stakeholders, shall designate one or more entities to assume the
responsibilities of a Transmission Owner for all Network Upgrades under this
Tariff.
in a timely manner within the SPP Transmission Expansion Plan (“STEP”) one or more
Transmission Owners to construct, own, and/or finance each project in the plan.
2) Any owner of Transmission Facilities, as defined in Attachment AI of this Tariff,
which are or are capable of being used by the Transmission Provider to provide
transmission service pursuant to Part II and Part III of this Tariff, shall have the
right to sign the SPP Membership Agreement as a Transmission Owner and
thereby acquire all of the rights and obligations of a Transmission Owner
described therein, including all of the rights and obligations of a Transmission
Owner described in this Tariff and specifically this Section VI.
3) Each Transmission Owner and Designated Transmission Owner every other entity
designated to construct a project by the Transmission Provider pursuant to this
Section VI shall use due diligence to construct transmission facilities as directed
by the SPP Board of Directors subject to such siting, permitting, and
environmental constraints as may be imposed by state, local and federal laws and
regulations, and subject to the receipt of any necessary federal or state regulatory
approvals. Such construction shall be performed in accordance with Good Utility
Practice, applicable SPP Criteria, industry standards, the applicable Transmission
Owner’s specific reliability requirements and operating guidelines (to the extent
these are not inconsistent with other requirements), and in accordance with all
applicable requirements of federal or state regulatory authorities. Each
Transmission Owner shall be fully compensated to the greatest extent permitted
by the Commission for the costs of construction undertaken by such Transmission
Owner in accordance with this Tariff.
34) A specific endorsed Sponsored Upgrade in the SPP Transmission Expansion Plan
will be deemed approved for construction upon execution of a contract that
financially commits a Project Sponsor to such upgrade. The Transmission
Owner responsible for the Sponsored Upgrade shall be determined as follows:
Comment [s2]: RTWG 8-8-12 modified
Comment [s3]: RTWG 8-8-12 modified
Comment [s4]: RTWG 8-8-12 modified; Do we even need to refer to DTO?
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 9
(i) If the Sponsored Upgrade is a rebuild of an existing facility or utilizes
rights-of-way where facilities exist, the Sponsored Upgrade will be
assigned to the Transmission Owner of the existing facility;.
(ii) If the Sponsored Uupgrade is a new transmission facility, the entity
sponsoring the Sponsored Upgrade may become the Transmission Owner
of the facility if it meets the qualifications to become a Transmission
Owner set forth in accordance with the requirements contained in Section
III.1(.b) of Attachment Y, including executing an SPP Membership
Agreement as a Transmission Owner; or
(iii) If the Transmission Owner is not determined under subsections (i) and (ii)
above, the Transmission Provider will follow the process contained in
Section IV of Attachment Y.
4) After a new transmission project is (i) approved under the SPP Transmission
Expansion Plan or (ii) required pursuant to a Service Agreement or (iii) required
by a generation interconnection agreement to be constructed by a Transmission
Owner(s) other than the Transmission Owner that is a party to the generation
interconnection agreement, the Transmission Provider shall direct the appropriate
Transmission Owner(s) to begin implementation of the project for which financial
commitment is required prior to the approval of the next update of the SPP
Transmission Expansion Plan. At the discretion of the SPP Board of Directors,
the Transmission Provider may direct the appropriate Transmission Owner(s) to
begin implementation of other such approved or required transmission projects for
which financial commitment is not required prior to approval of the next SPP
Transmission Expansion Plan. The direction from the Transmission Provider
shall be provided in writing to the Transmission Owner(s) designated to construct
the project (“Designated Transmission Owner(s)”). The written notification to the
Designated Transmission Owner(s) shall include but not be limited to: (1) the
specifications of the project required by the Transmission Provider and (2) a
reasonable project schedule, including a project completion date (“Notification to
Construct”). If the project forms a connection with facilities of a single
Transmission Owner, that Transmission Owner shall be designated to construct
the project. If the project forms a connection with facilities owned by multiple
Transmission Owners, the applicable Transmission Owners will be designated to
provide their respective new facilities. If there is more than one Transmission
Owner designated to construct a project, the Designated Transmission Owners
will agree among themselves which part of the project will be provided by each
entity. If the Designated Transmission Owners cannot come to a mutual
agreement regarding the assignment and ownership of the project the
Transmission Provider will facilitate their discussion. Each project or segment of
a project being built by a single Designated Transmission Owner shall be
considered a separate project for purposes of Section VI.6 and each Designated
Transmission Owner will receive a separate Notification to Construct for each
project or segment of a project they are responsible to construct.
Comment [s5]: RTWG 8-8-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 10
545) Network Upgrade(s) and Distribution Upgrades (as defined in Attachment V to
the Tariff) identified in a generation interconnection agreement will be
constructed pursuant to the generation interconnection agreement or pursuant to
Section VI.4 of this Attachment OY of this Tariff. Network Upgrades and
Distribution Upgrades (as defined in Attachment V to the Tariff) identified in a
generation interconnection agreement required to be constructed by the
Transmission Owner who is a party to the generation interconnection agreement
shall be constructed pursuant to the generation interconnection agreement. All
other Network Upgrades and Distribution Upgrades (as defined in Attachment V
to the Tariff) identified in a generation interconnection agreement to be
constructed by Transmission Owners not a party to the generation interconnection
agreement shall be constructed pursuant to Section IVVI.4 of this Attachment OY
of this Tariff.
6) In order to maintain its right to construct the project, the Designated Transmission
Owner shall respond within ninety (90) days after the receipt of the Notification
to Construct with a written commitment to construct the project as specified in the
Notification to Construct or a proposal for a different project schedule and/or
alternative specifications in its written commitment to construct (“Designated
Transmission Owner’s proposal”). The Transmission Provider shall respond to
the Designated Transmission Owner’s proposal within ten (10) days of its receipt
of the proposal. If the Transmission Provider accepts the Designated
Transmission Owner’s proposal, the Notification to Construct will be modified
according to the accepted proposal and the Designated Transmission Owner shall
construct the project in accordance with the modified Notification to Construct. If
the Transmission Provider rejects the Designated Transmission Owner’s proposal,
the Designated Transmission Owner’s proposal shall not be deemed an acceptable
written commitment to construct the project. However, the Transmission
Provider’s rejection of such proposal shall not preclude a Designated
Transmission Owner from providing a written commitment to construct the
project after such rejection, provided the subsequent written commitment to
construct the project is made within the ninety day time period after the issuance
of the Notification to Construct.
If a Designated Transmission Owner does not provide an acceptable written
commitment to construct within the ninety (90) day period, the Transmission
Provider shall solicit and evaluate proposals for the project from other entities and
select a replacement designated provider. The Transmission Provider shall solicit
proposals from entities that meet certain specified legal, regulatory, technical,
financial and managerial qualifications, specifically including the following:
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 11
i) Entities that have obtained all state regulatory authority necessary to
construct, own and operate transmission facilities within the state(s) where
the project is located,
ii) Entities that meet the creditworthiness requirements of the Transmission
Provider,
iii) Entities that have signed or are capable and willing to sign the SPP
Membership Agreement as a Transmission Owner upon the selection of its
proposal to construct and own the project, and
iv) Entities that meet such other technical, financial and managerial
qualifications as are specified in the Transmission Provider’s business
practices.
The Transmission Provider shall evaluate each proposal with regard to the cost,
reliability and timeliness of the proposed construction of the project and shall
make a recommendation to the Board of Directors. The Board of Directors shall
thereafter select an entity making a proposal and arrange for that entity to
construct the project and become the Designated Transmission Owner.
At any time, a Designated Transmission Owner may elect to arrange for another
entity or another existing Transmission Owner to build and own all or part of the
project in its place subject to the qualifications in Subsections i, ii, iii, and iv
above.
Nothing in this Section VI.6 shall relieve a Transmission Owner of its obligation
to construct an upgrade as specified in Section VI.2 of this Attachment O and
Section 3.3(a) of the SPP Membership Agreement in the event that no other
qualified entity can be found to construct the project.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 12
ATTACHMENT Y
TRANSMISSION OWNER DESIGNATION PROCESS
I. OVERVIEW OF TRANSMISSION OWNER DESIGNATION PROCESS
1) The Transmission Provider shall designate one or more entities to assume the
responsibilities of a Transmission Owner for new transmission facilities under this
Tariff pursuant to this Attachment Y.
21) The Transmission Provider shall designate a Transmission Owner in accordance
with the process set forth in Section III of this Attachment Y for transmission
facilities approved for construction by the SPP Board of Directors that meet all of
the following criteria:
ia.) ITP Upgrades or high priority upgrades;
iib.) Transmission facilities with a nominal operating voltage of 300 kV or
greater;
iiic.) Transmission facilities that are not a rebuild of an existing facility and do
not use rights-of-way where facilities exist; and
ivd.) Transmission facilities located where the selection of a Transmission
Owner pursuant to Section III of this Attachment Y does not violate state
law where the upgrade is to be built.
32) For upgrades meeting the specifications listed in Section I.2 of this Attachment Y,
if the transmission facility is needed for reliability of the grid, the transmission
facility has a need date that cannot be met if the Transmission Owner Selection
Process in Section III of theis Attachment Y is followed, and no other
transmission or non-transmission mitigation options are available to relieve the
reliability issue to allow sufficient time for the Transmission Owner Selection
Process to proceed, then the Transmission Provider shall select the Transmission
Owner in accordance with Section IVIII of this Attachment Y. Approval of such
action must be made by the SPP Board of Directors.
3) For upgrades not defined in Section I.2, the Transmission Provider shall designate
a Transmission Owner in accordance with the process set forth in Section IV of
this Attachment Y.
4) The designation from the Transmission Provider shall be provided in writing to
implement the construction of a project pursuant to Section V of this Attachment
Y.
5) All costs related to projects that are approved for construction by the
Transmission Provider shall be tracked in accordance with Section VI of this
Attachment Y.
Comment [s6]: RTWG 8-8-12 deleted
Comment [s7]: OTDTF 8-1-12: To come back to this language
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 13
II. DEFINITIONS
The terms used in this Attachment Y shall have the meanings as defined in this Section II
or as otherwise defined in this Tariff.
Applicant Transmission Owner:
An entity that has submitted an application to the Transmission Provider to be a Qualified
Transmission Owner.
Competitive Upgrades:
Those upgrades defined in Section I.21 of this Attachment Y or an upgrade for which the
Transmission Provider must select a replacement Transmission Owner pursuant to
Section IV.3 of this Attachment Y.
Guaranty:
This term shall have the meaning given in Attachment X of this Tariff.
Guarantor:
This term shall have the meaning given in Attachment X of this Tariff.
Industry Expert Panel:
The panel of industry experts designated by the Oversight Committee to review Requests
for pProposals (“RFPs”) in the Transmission Owner Selection Process and recommend to
the Board of Directors Selected Designated Transmission Owners to the Board of
Directorsfor Competitive Upgrades.
Not-For- Profit:
This term shall have the meaning given in Attachment X of this Tariff.
Comment [s8]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 14
Qualified Transmission Owner:
An entity that has been determined by the Transmission Provider to satisfy the
Transmission Owner qualification criteria set forth in this Attachment Y.
Selected Transmission Owner
An entity that has been selected by the Board of Directors to construct a transmission project but
that has not yet accepted an NTC.
Transmission Owner Selection Process:
The process of determining the Transmission Owner for Competitive Upgrades pursuant
to Section III.2 of this Attachment Y.
III. TRANSMISSION OWNER SELECTION PROCESS FOR COMPETITIVE
UPGRADES
1) Transmission Owner Application and Qualification Process
a) Application
Any entity that desires to participate in the Transmission Owner Selection
Process outlined in this Section III must submit an application and
supporting materials to demonstrate that it satisfies the qualification
criteria set forth in this Section III. The Transmission Provider will
evaluate the Applicant Transmission Owner’s application and supporting
materials and determine whether the Applicant Transmission Owner
satisfies the qualification criteria to be a Qualified Transmission Owner
(“QTO”) to participate in the Transmission Owner Selection Process in
accordance with the timeline set out in Section I.1(c) of this Attachment
Y.
(i) Any entity wishing to participate in the Transmission Owner
Selection Process, whether a current Transmission Owner or
another entity, must submit an application to the Transmission
Provider in the form provided on the Transmission Provider’s
website no later than June 30 of the year prior to the calendar year
in which the Applicant Transmission Owner wishes to participate
in the Transmission Owner Selection Process. The Applicant
Transmission Owner shall submit an application fee with its
application equal to the amount of the SPP annual membership fee.
Comment [s9]: Cite check
Comment [s10]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 15
If the Applicant Transmission Owner is a member of SPP and is
current in payment of its annual membership fee, then no
application fee shall be required. The amount of the application
fee shall be posted on the Transmission Provider’s website as part
of the application form.
(ii) After the Transmission Provider determines that the entity is
qualified to be a QTO, the entity shall remain a QTO for the five
calendar years starting January 1 subsequent to that determination,
subject to the annual certification process in Section III.1(.c) of this
Attachment Y and termination process pursuant to Section III.1(.d)
of this Attachment Y. To be considered for continuation of QTO
status for a subsequent five-year periodAfter five years, the QTO
must submit a full application package in accordance with Section
III.1.a.i of this Attachment Y and be re-approved as a QTO by
June 30 of the fifth year of the current term. The Transmission
Provider will evaluate the application in accordance with Section
III.1.c of this Attachment Y.
(iii) Upon approval of anAny application from an Applicant
Transmission Owner to become a QTOwill be posted on, the
Transmission Provider’s will post the application on its website no
later than July 15, subject to any applicable confidentiality
protections.
b) Qualification Criteria
An Applicant Transmission Owner must demonstrate that it meets the
following qualification criteria:
(i) SPP Membership Criterion
An Applicant Transmission Owner must demonstrate that it is an
SPP Member or is willing to sign the SPP Membership Agreement
as a Transmission Owner if the Applicant Transmission Owner is
selected as part of the Transmission Provider’s Transmission
Owner Selection Process. Any NTC issued to an Applicant
Transmission Owner that is not an SPP Member will be contingent
upon the Applicant Transmission Owner executing the SPP
Membership Agreement as a Transmission Owner and paying all
required membership fees.
(ii) Financial Criteria
Comment [s11]: RTWG 8-9-12 modified
Comment [s12]: RTWG 8-9-12 modified
Comment [s13]: RTWG 8-9-12 modified.
Insert in NTC Section:
Any NTC issued to a QTO that is not an SPP
Member will be contingent upon the QTO
executing the SPP Membership Agreement as
a Transmission Owner and paying all required
membership fees.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 16
An Applicant Transmission Owner must demonstrate that it meets
one of the following financial criteria:
(a1) A senior unsecured investment grade rating or an issuer
rating of BBB- or equivalent from a “nationally recognized
statistical rating organization” as defined in Attachment X
of this Tariff. If an Applicant Transmission Owner
maintains a rating from all three approved nationally
recognized statistical rating organizations, it must maintain
at least two ratings in the investment grade range. If an
Applicant Transmission Owner maintains a rating from two
of the approved nationally recognized statistical rating
organizations, it must maintain at least one of those ratings
in the investment grade range.
(b2) If the Applicant Transmission Owner does notcannot
satisfy the requirement set forth in (i1) above, a Guaranty
from its parent or affiliated organization that possesses an
investment grade rating or an issuer rating of BBB- or
equivalent from a “nationally recognized statistical rating
organization” as defined in Attachment X of this Tariff. A
Guaranty obligates the Guarantor to satisfy the obligations
of the guarantee entity. Parent Guaranties are acceptable
where the Applicant Transmission Owner is a subsidiary,
joint venture, or affiliate of the parent Guarantor. The
Guaranty may be cancelled at any time that the Applicant
Transmission Owner establishes an investment grade rating
as discussed in Section III.21(b)(ii)(1) of this Attachment
Y. The Guaranty will be in a form consistent with
Appendix D of Attachment X of this Tariff and will satisfy
the following requirements:
(1a) Be duly authorized by the Guarantor and
signed by an officer of the Guarantor;
(2b) State a minimum effective period of five (5)
years, or provide for automatic renewal
subject to cancellation with no less than
sixty (60) days notice and provided that in
all events the Guaranty is effective for all
obligations of the Applicant Transmission
Owner undertaken prior to cancellation;
(3c) Include certification of the corporate
Comment [s14]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 17
secretary of the Guarantor that the
execution, delivery, and performance of the
Guaranty have been duly authorized;
(4d) Certify that the Guaranty does not violate
other undertakings or requirements
applicable to the Guarantor and is
enforceable against the Guarantor in
accordance with its terms;
(5e) Obligate the guarantor to submit a
representation letter annually indicating any
material changes from the information
provided in the Applicant Transmission
Owner’s application related to the Guarantor
and Guaranty, and representing that the
Guarantor continues to satisfy the financial
criteria;
(6f) Secure all obligations of the Applicant
Transmission Owner under or in connection
with this Tariff and other agreements;
(7g) Be supported by adequate consideration and
be otherwise binding as a matter of law; and
(8h) Include as an attachment a resolution of the
board of directors or other governing body
of the Guarantor authorizing the Guaranty.
(c3) If the Applicant Transmission Owner cannotdoes not
satisfy the requirements set forth in (i1) or (ii2) above, a
formal letter of reference from a commercial bank
evidencing an existing line of credit from commercial
banks (or access to an existing line of credit through Inter-
company agreements with a Parent or Affiliate), or bonding
indication letter from an insurance or surety company either
of which indicate a willingness to extend credit to the
Applicant Transmission Owner in an amount of at least
$25,000,000 (for bank) or willingness to provide a surety
bond in the amount of at least $25,000,000 (for an
insurance or surety company). Commercial bank reference
letters acceptable to the Transmission Provider must be
issued by a financial institution organized under the laws of
Comment [s15]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 18
the United States or any state of the United States or the
District of Columbia or a branch or agency of a foreign
commercial bank located in the United States, with a
minimum corporate debt rating of A- or equivalent from a
“nationally recognized statistical rating organization” as
defined in Attachment X of this Tariff and total assets of at
least $10 billion. Bonding indication letters acceptable to
the Transmission Provider must be issued by an insurance
or surety company with a minimum financial strength
rating of A- and a financial size category of X from the
A.M. Best Company.
(d4) If the Applicant Transmission Owner is a municipality, a
cooperative, or other Not-For-Profit entity, the Applicant
Transmission Owner may satisfy the financial criteria
requirement by providing evidence of direct rate-setting
authority or taxing authority. The Applicant Transmission
Owner must possess this authority and cannot rely on an
affiliation withto another entity that possesses rate-setting
or taxing authority.
(iii) Managerial Criteria
An application from an Applicant Transmission Owner must
include a showing that the Applicant Transmission Owner has
requisite expertise by describing its capability, perspective, and
experience in the following areas:
(a1) Transmission Project Development
(ia) engineering, permitting, environmental, equipment
and material procurement, project management
(including scope and schedule management),
construction, commissioning of new facilities,
technology content (e.g., experience with
technologies such as special conductors,
terminations, structures, static var compensators);
and
(iib) routing, surveying, rights-of-way, eminent domain,
and real estate acquisition experience, including
process for obtaining easements.
Comment [s16]: RTWG 8-9-12 modified
Comment [W&T17]: OTDTF: Does the group want to move the financial criteria to its own Attachment of the Tariff?
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 19
(2b) Internal safety program, contractor safety program, safety
performance record (program execution).
(c3) Operations Expertise: control center operations (staffing,
etc.), NERC compliance process and compliance history,
registration or the ability to register for compliance with
applicable NERC Reliability Standards, storm/outage
response and restoration plan, record of past reliability
performance, statement of which entity will be operating
completed transmission facilities, staffing, equipment, and
crew training.
(d4) Maintenance Expertise: staffing and crew training,
transmission facility and equipment maintenance, record of
past maintenance performance, NERC compliance process
and history, statement of which entity will be performing
maintenance on completed transmission facilities.
(e5) Ability to comply with Good Utility Practice, SPP Criteria,
industry standards, and applicable local, state, and federal
requirements.
(f6) Any other relevant project development experience that the
Applicant believes may demonstrate its expertise in the
above areas.
An Applicant Transmission Owner can demonstrate that it meets
the managerial criteria either on its own or by relying on an entity
or entities with whom it has a corporate affiliation or contractual
relationship (“Alternate Qualifying Entity(ies)”). The Alternate
Qualifying Entity(ies) relied upon by the Applicant Transmission
Owner must independently satisfy the managerial criteria for
which the Applicant Transmission Owner is relying upon the
Alternate Qualifying Entity(ies) to satisfy. If the Applicant
Transmission Owner seeks to satisfy the managerial criteria in
whole or in part by relying on one or more Alternate Qualifying
Entity(ies), the Applicant Transmission Owner must submit: (1)
materials to demonstrate that the Alternate Qualifying Entity(ies)
satisfy(ies) the managerial criteria for which the Applicant
Transmission Owner is relying upon the Alternate Qualifying
Entity(ies) to satisfy; and (2) an executed agreement that
contractually obligates the Alternate Qualifying Entity(ies) to
perform the function(s) for which the Applicant Transmission
Owner is relying upon the Alternate Qualifying Entity(ies) to
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 20
satisfywas deemed to satisfy the qualification criteria if the
Applicant Transmission Owner is ultimately selected to construct a
transmission project.
c) Determination of Qualifications
(i) Upon receiving an application to become a QTO, the Transmission
Provider will review the application to determine whether the
Applicant Transmission Owner satisfies the Transmission Owner
qualification criteria set forth in Section III.1(.b) of this
Attachment Y. The Transmission Provider will notify each
Applicant Transmission Owner of its determination no later than
September 30 of the year in which the application was submitted.
(ii) If the Transmission Provider determines that the Applicant
Transmission Owner fails to satisfy one or more of the
qualification criteria, the Transmission Provider will inform the
Applicant Transmission Owner of such deficiency(ies) and the
Applicant Transmission Owner will be allowed to cure any
deficiency(ies) within thirty (30) calendar days of notice from the
Transmission Provider by providing any additional information
that the Applicant Transmission Owner believes cures the
deficiency(ies). The Transmission Provider will review the
information provided by the Applicant Transmission Owner and
render a final determination of whether the Applicant Transmission
Owner satisfies the qualification criteria within forty-five (45)
calendar days of Transmission Provider’s receipt of the additional
information. If, after attempting to cure the deficiency(ies), the
Applicant Transmission Owner still has not satisfied the
qualification criteria, the Applicant Transmission Owner will be
disqualified from the Transmission Owner Selection Process for
the following year.
(iii) Upon the Transmission Provider’s determination that an Applicant
Transmission Owner satisfies the qualification criteria, the
Transmission Provider shall notify the Applicant Transmission
Owner that it has been determined to be a QTO and canto
participate in the Transmission Owner Selection Process. By
December 31 of each year, Tthe Transmission Provider shall post
on its website a list of all QTOs by December 31 of each year for
the Transmission Owner Selection Process that are eligible to
participate in the next calendar year for any Competitive
Upgradewill commence after approval of the next SPP
Transmission Expansion Plan.
Comment [s18]: RTWG 8-9-12 modified
Comment [s19]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 21
(iv) If the Applicant Transmission Owner disagrees with the
Transmission Provider’s determination under Section III.1.c(ii) of
this Attachment Y, the Applicant Transmission Owner may initiate
dispute resolution procedures under this Section III.1.c(iv) and
Section 12 of this Tariff. Any dispute regarding the Transmission
Provider’s determination of the Applicant Transmission Owner’s
qualifications shall first be referred to a designated senior
representative of the Transmission Provider and a senior
representative of the Applicant Transmission Owner for resolution
on an informal basis as promptly as practicable. In the event the
designated representatives are unable to resolve the dispute within
thirty (30) days [or such other period upon which the Transmission
Provider and Applicant Transmission Owner agree] by mutual
agreement, such dispute may be submitted to arbitration and
resolved in accordance with the arbitration procedures set forth in
Sections 12.2 through 12.5 of this Tariff.
d) Annual RecCertification Process and Reporting Requirements
and Termination of QTO Status
i) (i) By June 30 of each year, each QTO must submit to the
Transmission Provider a notarized letter signed by an authorized
officer of the QTO certifying that the QTO continues to meet the
current qualification criteria or indicating any material changes
tofrom the information provided in its application. The QTO will
pay an annual certification fee equal to the amount of the SPP
annual membership fee. If the QTO is a Member of SPP and is
current in payment of its annual membership fee, then no
certificationapplication fee will be required.
ii) If at any time there is a change to the information provided in its
application, a QTO shall be required to inform the Transmission
Provider within seven calendar days so that the Transmission
Provider may determine whether the QTO continues to satisfy the
Transmission Owner qualification criteria. Upon notification of
any such change, the Transmission Provider will have the option
to: (a) determine that the change does not affect the QTO’s status;
(b) suspend the QTO’s eligibility to participate in the Transmission
Owner Selection Process until the QTO has cured any deficiency
in its qualifications to the Transmission Provider’s satisfaction; (c)
allow the QTO to continue to participate in the Transmission
Owner Selection Process for a limited time period, as specified by
the Transmission Provider, while the QTO cures the deficiency to
Comment [s20]: OTDTF 8-9-12 deleted
Comment [s21]: RTWG 8-9-12 modified
Comment [s22]: RTWG 8-9-12 modified
Comment [s23]: OTDTF 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 22
the Transmission Provider’s satisfaction; or (d) terminate the QTO
status in accordance with Section III.1.e of this Attachment Y.
e) Termination of QTO Status
(ii) The Transmission Provider may terminate a QTO’s status if the
QTO: (1) fails to submit its annual certification letter; (2) fails to pay the
applicable fee as required by Section III.1(d) of this Attachment Y; (3)
experiences a change in its qualifications and the Transmission Provider
determines that it may no longer be a QTO; or (24) informs the
Transmission Provider that it no longer desires to be a QTO;; or (3) fails to
submit its annual certification letter and pay the applicable fee as required
by Section III.1(d)(i) of this Attachment Y or (5) fails to notify the
Transmission Provider of a change to the information provided in its
application in accordance with Section III.1.d of this Attachment Y.
f) Dispute Resolution
If the Applicant Transmission Owner or QTO (“Affected Party”) disagrees
with the Transmission Provider’s determination regarding its
qualifications under Section III.1 of this Attachment Y, the Affected Party
may initiate dispute resolution procedures. Any such dispute shall first be
referred to a designated senior representative of the Transmission Provider
and a senior representative of the Affected Party for resolution on an
informal basis as promptly as practicable. In the event the designated
representatives are unable to resolve the dispute within thirty (30) days (or
such other period upon which the Transmission Provider and the Affected
Party agree) by mutual agreement, such dispute may be submitted to
arbitration and resolved in accordance with the arbitration procedures set
forth in Sections 12.2 through 12.5 of this Tariff.
[RTWG REVIEW CONCLUDED 8-9-12]
[OTDTF REVIEW OF THE PRIOR DRAFT CONCLUDED 8-9-12]
2) Transmission Owner Selection Process
a) Overview
Once a Competitive Upgrade has been approved by the Board of
Directors, the Transmission Provider will issue a Request for Proposals
(“RFP”) for the Competitive Upgrade as specified in this Section III of
Attachment Y.
Comment [s24]: OTDTF 8-9-12 modified
Comment [s25]: RTWG 8-9-12 modified
Comment [s26]: OTDTF 8-9-12 OTDTF modified
Comment [BGF27]: RTWG Began Reiew 08/22/12
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 23
b) Industry Expert Panel
i) On an annual basis, the Oversight Committee or its successor shall
identify a pool of candidates to serve as industry experts on one or
more Industry Expert Panel(s) (“IEP”) to evaluate proposals that
are submitted in response to any RFP issued by the Transmission
Provider pursuant to this Section III of Attachment Y. IEP
candidates shall have expertise in one or more of the following
areas: (1) electric transmission engineering design; (2) electric
transmission project management and construction; (3) electric
transmission operations; (4) electric transmission rate design and
analysis; and (5) electric transmission finance.
ii) To qualify for an IEP, each industry expert must disclose to the
Oversight Committee any affiliation with any SPP stakeholder or
any QTO. In the event an affiliation exists, the Oversight
Committee will evaluate whether the affiliation may adversely
impact an industry expert’s ability to independently evaluate RFP
proposals, and the Oversight Committee may disqualify that
industry expert.
iii) The Oversight Committee shall create an IEP from the IEP
candidate pool to evaluate proposals resulting from the RFPs. The
IEP shall consist of three (3) to five (5) industry experts. Upon
Board of Directors approval, the Oversight Committee may create
additional IEPs. Each IEP member must sign a confidentiality
agreement prior to participating in the Transmission Owner
Selection Process.
iv) If a member of a designated IEP becomes affiliated with a
stakeholder or QTO, the IEP member shall immediately notify the
Transmission Provider staff and the Oversight Committee. The
Oversight Committee will shall evaluate whether any affiliation
between a member of a designated IEP and a stakeholder or QTO
may adversely impact the IEP member’s ability to independently
evaluate RFP proposals reviewed by that IEP. In such the event,
that the Oversight Committee determines that any such affiliation
adversely impacts the IEP member’s ability to evaluate proposals
independently, the Oversight Committee shall may disqualify
remove the IEP member from that IEP. and, If necessary, the
Oversight Committee may designate a replacement another
candidate IEP member from the IEP candidate pool if necessary.
Each IEP member must sign a confidentiality agreement prior to
participating in the Transmission Owner Selection Process.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 24
v) The IEP shall be the primary source from which the Board of
Directors shall obtain recommendations of which RFP respondents
are selected to construct, own, operate, and maintain Competitive
Upgrades. The Transmission Provider shall facilitate the IEP’s
efforts to develop recommendations to the Board of Directors. The
IEP will evaluate all aspects of each proposal submitted for its
review. Once all evaluations are complete, the IEP will develop a
single recommendation for the Board of Directors consisting of a
selected its recommended RFP proposal and an alternativee RFP
proposal for each Competitive Upgrade.
c) Request for Proposals
The Transmission Provider shall issue Aan RFP for each Competitive
Upgrade to all QTOs. will be issued to allow QTOs to submit proposals to
undertake the obligations of a Transmission Owner for each Competitive
Upgrade. The RFP will shall be a standard form that the QTO must
complete and submit to participate in the Transmission Owner Selection
Process for each Competitive Upgrade.
The RFP shall contain information, including, but not limited to:
i) An overview of the purpose for the RFP including the need for the
transmission project(s), Competitive Upgrade, regulatory context
and authority, confidentiality statement, and other necessary
information.
ii) A deadline for all RFP proposal submissions and minimum RFP
proposal submission requirements.
iii) Minimum design specifications.
iv) A requirement that the QTO provide the following information
specific to the Competitive Upgrade for which it submits a
proposal:
(1) financial information specific to the Competitive Upgrade
for which it submits a proposal, including but not limited to
demonstration of financing and itemized revenue
requirement calculations;
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 25
(2) engineering information specific to the Competitive
Upgrade for which it submits a proposal, including but not
limited to engineering design of the project and technical
requirements;
(3) construction information specific to the Competitive
Upgrade for which it submits a proposal, , including but not
limited to anticipated project timeline, demonstration of
past transmission construction experience, equipment
acquisition processes, description of applicable rights-of-
way and real estate acquisition process, description of
routing process, description of permitting, description of
construction clearance processes, and identification of
responsible party for construction inspection;
(4) operations and maintenance information specific to the
Competitive Upgrade for which it submits a proposal,
including but not limited to demonstration of operations,
statement of which entity will be operating and maintaining
the transmission facility, storm and outage response plan,
maintenance plan, staffing, equipment, crew training, and
record of past maintenance and outage performance; and
(5) safety information, including but not limited to
identification of the internal safety program, contractor
safety program, and safety performance record: and.
(6) identification of information in the RFP proposal that the
RFP respondent considers to be confidential.
v) Information exchange requirements including but not limited to,
such as identification of data required to be provided to the
Transmission Provider in accordance with NERC reliability
standards, data of design of the facilities for the Transmission
Provider, and CEII requirements.
vi) A description of the proposal evaluation procedure, including the
statement of proposal evaluation methodology ,and criteria for
acceptable proposals, and identification of applicable proposal
evaluation fees.
vii) A requirement that the respondent agree to pay the RFP fee for
each RFP proposal submitted, as outlined in Section III.2(e) of this
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 26
Attachment Y, including the initial deposit at the time of
submission of the RFP proposal.
d) RFP Process and Timeline
i) The Transmission Provider will issue each RFP on or before the
later of: (1) seven (7) calendar days after approval of the
Competitive Upgrade by the Board of Directors; or (2) eighteen
(18) months prior to the date that anticipated financial expenditure
is needed on a Competitive Upgrade. The RFP will only be issued
to QTOs.
ii) Each RFP respondent shall submit a complete proposal in response
to the RFP within ninety (90) calendar days of the date the RFP is
issued (“RFP Response Window”).
iii) The Transmission Provider shall not disclose any information
contained in any RFP proposal, except to the IEP, until the
issuance of the IEP reports in accordance with Section
III.2(d))(v)(2) of this Attachment Y.
[RTWG REVIEW CONCLUDED 8-22-12]
iiiiv) The Transmission Provider will immediately review each RFP
proposal for completeness, and will promptly notify the RFP
respondent if its proposal is incomplete. The RFP respondent may
submit information in order to complete the proposal if such
submittal is made within the RFP Response Window. Any RFP
respondent that fails to submit a complete proposal within the RFP
Response Window will be deemed to have waived its right to
respond to the RFP.
ivv) If the Transmission Provider does not receive any proposals in
response to an RFP, the Transmission Provider shall inform the
Board of Directors and shall select the DTO in accordance with the
process set forth in Section IV of this Attachment Y.
vvi) Upon the closing of the RFP Response Window, the Transmission
Provider shall provide the RFP proposals to the IEP. The IEP shall
review, score, and rank all RFP proposals and submit its
recommendation to the Board of Directors based upon selection
criteria outlined in Section III.2(f) of this Attachment Y. The
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 27
IEP’s recommendation shall be submitted to the Board of Directors
within sixty (60) calendar days of the initiation of the IEP’s review
(“Review Period”). Upon IEP request, the Oversight Committee
may extend the Review Period an additional thirty (30) calendar
days. Notification of such extension shall be provided to the Board
of Directors and posted on the Transmission Provider’s website.
The identity of RFP respondents shall not be disclosed to the
Board of Directors as part of the IEP’s recommendation.
(1) During its review, the IEP may initiate communication with
RFP respondents to obtain answers to any additional
questions about proposals, and any such communications
shall be documented by the IEP. Lobbying of the IEP by,
or on behalf of, the RFP respondents is prohibited, and may
result in disqualification of the RFP respondent by the
Transmission Provider from the RFP process. The IEP
recommendation shall score and rank each RFP proposal in
a non-discriminatory manner based upon the information
supplied in the RFP proposal or obtained through during
the Review Period.
(2) The IEP will compile an internal report for the
Transmission Provider detailing the process, data, results of
its deliberations, and its recommendationed of a selected
RFP proposal and an alternate RFP proposal for each
Competitive Upgrade. The Transmission Provider shall be
responsible for producing two redacted versions of the
internal report, a Board of Directors report and a public
report. The Board of Directors report shall exclude the
names of the RFP respondents. The public report shall
exclude the names of RFP respondents and any confidential
information obtained during the Transmission Owner
Selection Process. No later than fourteen (14) calendar
days prior to the Board of Directors meeting in which the
transmission owner selection will be made, the public
report will be posted on the Transmission Provider’s
website and the Board of Directors report will be provided
to the Board of Directors.
vii) The Board of Directors shall select an RFP proposal (“Selected
RFP Proposal”) and an alternate RFP proposal for each
Competitive Upgrade based primarily on the information provided
by the IEP. The Transmission Provider shall issue written
notification to the RFP respondent that submitted the sSelected
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 28
RFP pProposal that it has been chosen by the Board of Directors to
become the DTO for the Competitive Upgrade (“Selected RFP
Respondent”). Within seven (7) calendar days of receiving such
notice, the sSelected RFP rRespondent shall sign any necessary
agreement(s) to assume all of the responsibilities of a Transmission
Owner related to the Competitive Upgrade pursuant to the SPP
Membership Agreement and this Tariff and shall become the DTO
for the Competitive Upgrade.
viii) The sSelected RFP rRespondent shall be deemed to have waived
its right to become the DTO if, within seven (7) calendar days of
receiving such notice, the sSelected RFP rRespondent: (1) does not
respond to such notice from the Transmission Provider; (2) notifies
the Transmission Provider that it is no longer willing to become
the Transmission Owner for the Competitive Upgrade; or (3) is
unwilling to sign the necessary agreement(s). Upon such
circumstances, the Transmission Provider shall notify the Board of
Directors.
viiiix) If the sSelected RFP rRespondent has waived its right to become
the DTO pursuant to Section III.2(d)(viii) of this Attachment Y,
the Transmission Provider shall issue written notification to the
RFP respondent that submitted the alternate RFP proposal that it
has been selected to become the DTO for the Competitive
Upgrade. The RFP respondent that submitted the alternate RFP
proposal shall be deemed to have waived its right to become the
Transmission OwnerDTO if, within seven (7) calendar days of
receiving such notice, the RFP respondent that submitted the
alternate RFP proposal: (1) does not respond to such notice from
the Transmission Provider; (2) notifies the Transmission Provider
that it is no longer willing to become the Transmission Owner for
the Competitive Upgrade; or (3) is unwilling to sign the necessary
agreement(s). Upon such circumstances, the Transmission
Provider shall notify the Board of Directors of the results, and the
Transmission Provider will shall determine the DTO in accordance
with the process set forth in Section IV of this Attachment Y.
ix) The DTO for a Competitive Upgrade cannot assign the
Competitive Upgrade to another entity.
e) RFP Fee
Each RFP proposal shall be assessed a fee to compensate the
Comment [s28]: OTDTF 8-15-12: Need to include additional detail in the SPP Business Practices; specific costs to be included.
Comment [s29]: OTDTF 8-15-12: May consider moving the RFP Fees section earlier in the draft.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 29
Transmission Provider for all costs incurred to administer the RFP process
for each Competitive Upgrade. Initially, each RFP respondent shall
submit a deposit along with each proposal, which shall be equal to the
Transmission Provider’s estimate of the fee for participation in the RFP
process. The RFP costs will be determined at the completion of the
process, and all RFP respondents will make additional payments or obtain
refunds based on the reconciliation of fees deposits collected and actual
RFP costs.
The costs shall be allocated to each proposal on a pro-rata share basis,
calculated by taking the total RFP process costs for each Competitive
Upgrade and dividing by the number of proposals submitted for that
Competitive Upgrade.
f) Transmission Owner Selection Criteria and Scoring
i) The IEP will develop a final score for each RFP proposal and
provide its recommended a RFP proposal and an alternate RFP
proposal to the Board of Directors for each Competitive Upgrade.
The IEP evaluation and recommendation shall not be administered
in an unduly discriminatory manner. The RFP proposal with the
highest total score may not always be recommended. The IEP may
recommend that any RFP proposal be eliminated from
consideration due to a low score in any individual evaluation
category.
ii) The IEP may award up to one thousand (1000) base points for each
RFP proposal. An additional one hundred (100) points are
available to provide an incentive for stakeholders to share their
ideas and expertise to promote innovation and creativity in the
planning process. Additional details on each evaluation category
are provided in the Transmission Provider’s business practices.
iii) Base Points: The evaluation categories and maximum base points
for each category are listed below.
(1) Engineering Design (Reliability/Quality/General Design),
200 points: Measures the quality of the design, material,
technology, and life expectancy of the Competitive
Upgrade. Criteria considered in this evaluation category
shall include, but not be limited to:
(a) Type of construction (wood, steel, design loading,
etc.);
(b) Losses (design efficiency);
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 30
(c) Estimated life of construction; and
(d) Reliability/quality metrics.
(2) Project Management (Construction Project Management),
200 points: Measures a RFP respondent’s expertise in
implementing construction projects similar in scope to the
Competitive Upgrade that is the subject of the RFP.
Criteria considered in this evaluation category shall
include, but not be limited to:
(a) Environmental;
(b) Rights-of-way acquisition;
(c) Procurement;
(d) Project scope;
(e) Project development schedule (including obtaining
necessary regulatory approvals);
(f) Construction;
(g) Commissioning;
(h) Timeframe to construct; and
(i) Experience/track record.
(3) Operations (Operations/Maintenance/Safety), 250 points:
Measures safety and capability of a RFP respondent to
operate, maintain, and restore a transmission project.
Criteria considered in this evaluation category shall
include, but not be limited to:
(a) Control center operations (staffing, etc.);
(b) Storm/outage response plan;
(c) Reliability metrics;
(d) Restoration experience/performance;
(e) Maintenance staffing/training;
(f) Maintenance plans;
(g) Equipment;
(h) Maintenance performance/expertise;
(i) NERC compliance-process/history;
(j) Internal safety program;
(k) Contractor safety program; and
(l) Safety performance record (program execution).
(4) Rate Analysis (Cost to Customer), 225 points: Measures a
RFP respondent’s cost to construct, own, and operate the
transmission project that is the subject of the RFP over a
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 31
forty (40) year period. Criteria considered in this
evaluation category shall include, but not be limited to:
(a) Estimated total cost of project;
(b) Financing costs;
(c) FERC incentives;
(d) Revenue requirements;
(e) Lifetime cost of the project to customers;
(f) Return on equity;
(g) Material on hand, rights-of-way approval, assets on
hand; and
(h) Cost certainty guarantee.
(5) Finance (Financial Viability and Creditworthiness), 125
points: Measures a RFP respondent’s ability to obtain
financing for a transmission project that is the subject of the
RFP. Criteria considered in this evaluation category shall
include, but not be limited to:
(a) Evidence of financing;
(b) Material conditions;
(c) Financial/business plan;
(d) Pro forma financial statements;
(e) Expected financial leverage;
(f) Debt covenants;
(g) Projected liquidity;
(h) Dividend policy; and
(i) Cash flow analysis
iv) Incentive Points: An Each RFP respondent that originally
suggested an
upgrade during the ITP process (pursuant to Section – of
Attachment O) that was selected and approved as a Competitive
Upgrade shall receive one hundred (100) additional incentive
points in the Transmission Owner Selection Process for that
Competitive Upgrade. To demonstrate eligibility for the incentive
points, the RFP respondent must document in its RFP response that
it was the entity that suggested the upgrade and that it is seeking
incentive points. The Transmission Provider shall confirm such
eligibility and inform the IEP.
During the ITP process, the Transmission Provider will notify
stakeholders of identified transmission needs and provide a
transmission planning response window of thirty (30) days to
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 32
allow stakeholders to submit transmission project proposals to
meet those needs. Any proposals received by the Transmission
Provider will be held in confidence until after the thirty (30) day
response window. Each proposal must provide sufficient
information to facilitate the Transmission Provider’s evaluation of
the proposed transmission project(s). This information should
confirm that the proposed transmission project(s), at a minimum,
mitigates an issue that was observed in the ITP process, and shall
include: a description of the issue(s) identified in the ITP Process
to be addressed by the proposed project; notification of any
changes in modeling assumptions from those used in the current
ITP process; full description of project; required current ampacity
(capacity) of project; any known environmental impacts caused by
the addition of the project; results of transmission project
economic analysis if applicable; and any other information
available to support the selection of the project.
g) Failure of a Transmission Owner to Complete the Competitive
Upgrade
If, after accepting the NTC, the DTO cannot or is unwilling to complete
the Competitive Upgrade as directed by the Transmission Provider, the
Transmission Provider shall evaluate the status of the Competitive
Upgrade and may assign the project Competitive Upgrade to a new entity.
If the Transmission Provider has determined that there is sufficient time
for the selection process to be completed and the project Competitive
Upgrade constructed placed in service prior to the required need date as
determined by the Transmission Provider, the process described in Section
III of this Attachment Y shall be used to designate another entity to
become the a new DTO for the Competitive Upgrade. If sufficient time is
not available, the Transmission Provider shall designate a new DTO for
the Competitive Upgrade in accordance with Section IV of this
Attachment Y.
[OTDTF: DO WE NEED TO ADD THAT A COMPETITIVE PROJECT CANNOT BE
NOVATED OR ASSIGNED?]
IV. INCUMBENT TRANSMISSION OWNER DESIGNATION PROCESS
1) If the project forms a connection with facilities of a single Transmission Owner,
that Transmission Owner shall be selected to be the DTO. If the project forms a
connection with facilities owned by multiple Transmission Owners, the applicable
Comment [s30]: OTDTF 8-15-12: This section needs to be moved to Attachment O.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 33
Transmission Owners shall be selected to be the DTOs.. If there is more than one
Transmission Owner selected to construct a project, the DTOs will agree among
themselves which part of the project will be provided by each entity. If the DT
Os cannot come to a mutual agreement regarding the assignment and ownership
of the project, the Transmission Provider will facilitate their discussion. Each
DTO will receive an NTC, in accordance with Section V of this Attachment Y,
for each project or segment of a project that the DTO is responsible to construct.
2) In order to maintain its right to construct the project, the DT O shall respond
within ninety (90) days after the receipt of the NTC with a written commitment to
construct the project as specified in the NTC or a proposal for a different project
schedule and/or alternative specifications in its written commitment to construct
(“DTO’s proposal”). The Transmission Provider shall respond to the DTO’s
proposal within ten (10) days of its receipt of the proposal. If the Transmission
Provider accepts the DTO’s proposal, the NTC will be modified according to the
accepted proposal and the DT O shall construct the project in accordance with the
modified NTC. If the Transmission Provider rejects the DTO’s proposal, the
DTO’s proposal shall not be deemed an acceptable written commitment to
construct the project. However, the Transmission Provider’s rejection of such
proposal shall not preclude a DTO from providing a written commitment to
construct the project after such rejection, provided the subsequent written
commitment to construct the project is made within the ninety (90) day time
period after the issuance of the NTC.
3) If a DTO does not provide an acceptable written commitment to construct within
the ninety (90) day period, the Transmission Provider shall select a replacement
Transmission Owner in accordance with Section III of this Attachment Y.
4) At any time after accepting an NTC, a DTO may assign a project by arranging for
another entity to build and own all or part of the project in its place subject to the
following conditions:
a) Prior to starting its construction activity, the entity must have obtained all
state regulatory authority necessary to construct, own and operate
transmission facilities within the state(s) where the project is located;
b) The entity meets the financial requirements of the Transmission Provider
as specified in Section III of this Attachment Y;
c) The entity has signed or is capable and willing to sign the SPP
Membership Agreement as a Transmission Owner; and
d) The entity must meet such other qualifications as specified in Section III
of this Attachment Y.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 34
The Transmission Provider shall conduct the review necessary to ensure that the
proposed entity meets the above conditions, and approval of the assignment shall
be contingent upon satisfactorily meeting the conditions. With an assignment, the
DTO remains ultimately responsible to construct, own, and operate the project if
the assignee fails to fulfill its obligations.
5) Nothing in this Section IV shall relieve a Transmission Owner of its obligations
to construct an upgrade as specified in this Attachment Y O, Section VI.3 of this
Tariff and Section 3.3(a) of the SPP Membership Agreement in the event that no
other qualified entity can be found to construct the project.
V. NOTIFICATION TO CONSTRUCT PROCESS
1) Once a Transmission Owner is selected to construct a project through Section III
or Section IV of this Attachment Y, the Transmission Provider shall issue an NTC
for project(s) for which financial commitment is required prior to the approval of
the next update of the annual SPP Transmission Expansion Plan report. At the
discretion of the SPP Board of Directors, the Transmission Provider may issue an
NTC to the appropriate Transmission Owner to begin implementation of other
such approved or required transmission project(s) for which financial
commitment is not required prior to approval of the next annual SPP
Transmission Expansion Plan report.
2) The Transmission Provider shall issue an NTC to each entity selected to become
the DTO for each transmission
project. The NTC provided to the Designated Transmission Owner(s) shall
include, but not be limited to: (1) the specifications of the project required by the
Transmission Provider, (2) a reasonable project schedule, including a project need
date, and (3) the cost recovery method.
[RTWG REVIEW CONCLUDED 8-23-12]
3) Requests for additional cost estimates
a) If the an upgrade is of sufficient size, the Transmission Provider may issue
an
NTC to a DTO in order to request an requesting additional cost estimation
study, with sufficient information such that the resulting cost estimate is
such that the estimated costs are expected to be within +/- 20% of the final
costs of the upgrade. The Transmission Owner DTO would shall be
authorized to expend only those such funds necessary to perform such
Comment [BGF31]: RTWG clean up for consistency of “a NTC” versus” an NTC”
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 35
studyies,. however, shall not be authorized to expend, nor shall be
reimbursed, for any material or construction costs related to the project.
The NTC shall direct the DTO to perform detailed engineering and cost
studies within a stated timeframe defined in the NTC. The DTO shall
provide Transmission Provider an estimate of the engineering and other
costs, such as the costs for engineering to develop the design, perform
siting and routing reviews, perform environmental studies, or to take other
actions required to refine the cost of the transmission project described in
the NTC.
[OTDTF REVIEW CONCLUDED 8-16-12]
b) Upon receipt of the new cost estimate, the NTC will be considered to be
complete. The Transmission Provider shall review the new cost estimate.
If the revised cost estimate changes less than 20% from the original
estimate, the Transmission Provider will issue a new NTC authorizing
construction and setting the estimated cost of the project at the baseline
cost for cost tracking pursuant to Section VI of this Attachment Y.
c) If the new cost estimate is greater than 20% of the original estimated cost,
the Transmission Provider will review if it should proceed with the
constructing the project.
(i) The Transmission Provider will present the change in cost and its
recommendation to proceed with the project, cancel the project, or
suggest a new project to the Markets and Operations Policy
Committee.
(ii) The Markets and Operations Policy Committee shall review the
information and present the information and its recommendation to
the SPP Board of Directors.
(iii) The SPP Board of Directors shall determine the action to be taken
regarding the proposed transmission project. If it is determined to
proceed with the project, a new NTC will be issued to the DTO
authorizing it to proceed with construction of the project.
Otherwise the DTO shall be notified that the project has been
cancelled. Any replacement projects shall be studied and the DTO
determined in accordance with Attachment O and Attachment Y of
this Tariff.
4) If the Transmission Provider cancels an NTC for any reason outside the control of
the DTO, the DTO may request compensation for any stranded cost related to the
cancellation of the project. The Transmission Owner seeking to recover any
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 36
stranded cost must present the Transmission Provider with an itemized list of the
costs. The Transmission Provider will review the costs and will file them with the
Commission along with the method of how the costs are to be recovered.
VI. COST TRACKING PROCESS
Costs related to all projects approved for construction under the Tariff shall be tracked by
the Transmission Provider. If the cost significantly exceeds the estimated base line cost,
the project will be reviewed by the Transmission Provider to determine if the project
should continue to be constructed.
1) Upon the acceptance of an NTC by a DTO, the base line cost of the project will
be set. The baseline cost shall be the expected cost of the project(s) as agreed to
between the DTO and the Transmission Provider at the time the NTC was
accepted.
2) The DTO shall submit updates of the estimated costs to the Transmission Provider
on a quarterly basis in a standard format and method defined on the Transmission
Provider’s website.
3) If the estimated costs reported in a quarterly update vary from the baseline cost of
the project, the Transmission Provider shall investigate the reason for the change
in cost and report to the Markets and Operations Policy Committee the reason for
the change in cost and its recommendation on whether to accept the change in
cost and reset the baseline cost. The recommendation can be (1) to continue to
monitor the cost of the project, (2) reset the baseline cost of the project, or (3)
change the scope of the project, or (4) cancel the project. The MOPC shall review
the information and present to the SPP Board of Directors its conclusion and
recommendation, along with the Transmission Provider’s report. The SPP Board
of Directors shall make the final determination as to the action that will be taken.
VII. DEFAULT AND REEVALUATION
1) Any Transmission Owner which has accepted an NTC in accordance with this
Tariff shall do all within its power, and in accordance with the SPP Membership
Agreement to meet the terms contained in the NTC. If the Transmission Owner
cannot meet any of the terms agreed to in the NTC it must notify the
Transmission Provider immediately. The Transmission Owner may suggest
changes to the NTC and present the reasons why the changes should be approved.
The Transmission Provider will review the proposed changes. The Transmission
Provider may decide to: (1) accept the proposed changes; (2) start a negotiation
with the Transmission Owner to come to mutually acceptable terms; (3) reject the
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 37
proposed changes and maintain the conditions contained in the NTC.
2) If the Transmission Owner and the Transmission Provider cannot come mutually
acceptable terms, the Transmission Owner will be considered in default of the
NTC. Changes in cost of the transmission facility will not be considered a reason
for default and will be tracked in accordance with Section VI of this Attachment
Y. The Transmission Provider shall reevaluate the project to determine if it is still
required. If it is determined that the transmission facility is still required, the
Transmission Provider may withdraw the NTC and select another Transmission
Owner to construct the transmission facility.
3) If an NTC is cancelled due to a default by the Transmission Owner, the
Transmission Owner is not eligible to recover any costs it may have made related
to the NTC under Section V.4 of this Attachment Y.
[Question that needs answered: If the NTC relates to an upgrade of an existing facility,
what happens?]
Draft Tariff Revisions for Order No. 1000 Compliance
Order No. 1000 Draft Tariff Task Force
August 17, 2012
For Discussion during August 22-23, 2012 RTWG Meeting
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 1
D - Definitions
Delivering Party: The entity supplying capacity and energy to be transmitted at Point(s)
of Receipt.
Delivery Point Transfer: The transfer of responsibility for serving an existing delivery
point from one Network Customer or Transmission Customer to a different Network
Customer or Transmission Customer.
Designated Agent: Any entity that performs actions or functions required under the
Tariff on behalf of the Transmission Provider, a Transmission Owner, an Eligible
Customer, or the Transmission Customer.
Designated Resource: Any designated generation resource owned, purchased or leased
by a Transmission Customer to serve load in the SPP Region. Designated Resources do
not include any resource, or any portion thereof, that is committed for sale to third parties
or otherwise cannot be called upon to meet the Transmission Customer's load on a non-
interruptible basis.
Designated Transmission Owner (“DTO”): A Transmission Owner that has been
designated by the Transmission Provider pursuant to Attachment Y of this Tariff to
construct a transmission project and has accepted such designation.
Directly Assigned Upgrade Costs: An Eligible Customer’s share of the cost of a
Service Upgrade or a Project Sponsor’s share of the cost of a Sponsored Upgrade,
determined in accordance with Attachments J and Z1, including: (i) any costs directly
assigned to an Eligible Customer for a Service Upgrade in excess of the normally
applicable transmission access charges for the associated transmission service; (ii) any
costs directly assigned to an Eligible Customer that are in excess of the Safe Harbor Cost
Comment [s1]: RTWG 8-8-12: May revisit this definition. Having accepted the NTC?
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 2
Limit for Service Upgrades associated with new or changed Designated Resource; and
(iii) any costs directly assigned to a Project Sponsor for a Sponsored Upgrade.
Direct Assignment Facilities: Facilities or portions of facilities that are constructed by
any Transmission Owner(s) for the sole use/benefit of a particular Transmission
Customer or a particular group of customers or a particular Generation Interconnection
Customer requesting service under the Tariff. Direct Assignment Facilities shall be
specified in the Service Agreements that govern service to the Transmission Customer(s)
and Generation Interconnection Customer(s) and shall be subject to Commission
approval.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 3
N - Definitions
Native Load Customers: The wholesale and retail power customers of the Transmission
Owner(s) on whose behalf the Transmission Owner(s), by statute, franchise, regulatory
requirement, or contract, has (have) undertaken an obligation to construct or operate the
Transmission Owner's(s') system(s) to meet the reliable electric needs of such customers.
In addition, Native Load Customers also may include the customers of the Federal
Government on whose behalf the Government, by policy, statute, regulatory requirement,
or contract, delivers Federal capacity and energy to meet all or a portion of the reliable
electric needs of such customers.
Network Customer: An entity receiving transmission service pursuant to the terms of
the Transmission Provider's Network Integration Transmission Service under Part III of
the Tariff.
Network Integration Transmission Service: The transmission service provided under
Part III of the Tariff.
Network Load: The load that a Network Customer designates for Network Integration
Transmission Service under Part III of the Tariff. The Network Customer's Network
Load shall include all load served by the output of any Network Resources designated by
the Network Customer. A Network Customer may elect to designate less than its total
load as Network Load but may not designate only part of the load at a discrete Point of
Delivery. Where 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.
Network Operating Agreement: An executed agreement that contains the terms and
conditions under which the Network Customer shall operate its facilities and the technical
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 4
and operational matters associated with the implementation of Network Integration
Transmission Service under Part III of the Tariff.
Network Resource: Any designated generating resource owned, purchased or leased by
a Network Customer under the Network Integration Transmission Service Tariff.
Network Resources do not include any resource, or any portion thereof, that is committed
for sale to third parties or otherwise cannot be called upon to meet the Network
Customer's Network Load on a non-interruptible basis, except for purposes of fulfilling
obligations under a reserve sharing program.
Network Upgrades: All or a portion of the modifications or additions to transmission-
related facilities that are integrated with and support the Transmission Provider's overall
Transmission System for the general benefit of all Users of such Transmission System.
Next-Hour-Market Service: Non-firm transmission service that (a) is reserved for one
clock hour and (b) is requested within sixty (60) minutes before the start of the next clock
hour for service commencing at the start of that clock hour.
Non-Firm Point-To-Point Transmission Service: Point-To-Point Transmission
Service under the Tariff that is reserved and scheduled on an as-available basis and is
subject to Curtailment or Interruption as set forth in Section 14.7 under Part II of this
Tariff. Non-Firm Point-To-Point Transmission Service is available on a stand-alone
basis for periods ranging from one hour to one month.
Non-Firm Sale: An energy sale for which receipt or delivery may be interrupted for any
reason or no reason, without liability on the part of either the buyer or seller.
Notification to Construct (“NTC”): A written notice from the Transmission Provider
directing an entity that has been selected to construct one or more transmission projects in
accordance with Attachment Y to begin implementation of the transmission project(s).
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 5
O - Definitions
Open Access Same-Time Information System (OASIS): The information system and
standards of conduct contained in Part 37 of the Commission's regulations and all additional
requirements implemented by subsequent Commission orders dealing with OASIS.
Oversight Committee: The Oorganizational Ggroup defined in Section 6.4 of the SPP
Bylaws.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 6
T - Definitions
Third-Party Sale: Any sale for resale in interstate commerce to a Power Purchaser that
is not designated as part of Network Load under the Network Integration Transmission
Service.
Transition Period: The period from the Effective Date of this Tariff for the provision of
Network Integration Transmission Service to the last day of the fifth year thereafter. The
Transition Period for a Member that is a Nebraska public-power entity shall be the period
from the effective date of the transfer of functional control to the last day of the fifth year
thereafter.
Transmission Customer: Any Eligible Customer (or its Designated Agent) that (i)
executes a Service Agreement, or (ii) requests in writing that the Transmission Provider
file with the Commission, a proposed unexecuted Service Agreement to receive
transmission service under Part II of the Tariff. This term is used in the Part I Common
Service Provisions to include customers receiving transmission service under Part II and
Part III of this Tariff.
Transmission Owner: Each Member of SPP which has executed an SPP Membership
Agreement as a Transmission Owner and has the obligation to construct, own, operate,
and maintain transmission facilities as directed by SPP, and: (i) whose Tariff facilities (in
whole or in part) make up the Transmission System or (ii) who has accepted an NTC
from SPP an assignment (notification to construct pursuant to Attachment O) to build
and own transmission facilities but does not yet own transmission facilities under SPP’s
functional control; and (ii) has executed an SPP Membership Agreement as a
Transmission Owner. Those Transmission Owners that are not regulated by the
Commission shall not become subject to Commission regulation by virtue of their status
as Transmission Owners under this Tariff; provided, however, that service over their
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 7
facilities classified as transmission and covered by the Tariff shall be subject to
Commission regulation.
Transmission Provider: The Southwest Power Pool, Inc., as agent for and on behalf of
the Transmission Owners.
Transmission Provider's Monthly Transmission System Peak: The maximum firm
usage of the Transmission Provider's Transmission System in a calendar month.
Transmission Service: Point-To-Point Transmission Service provided under Part II of
the Tariff on a firm and non-firm basis.
Transmission System: The facilities used by the Transmission Provider to provide
transmission service under Part II, Part III and Part IV of the Tariff.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 8
ATTACHMENT O
TRANSMISSION PLANNING PROCESS
[EXCERPTED]
VI. Construction of Transmission Facilities
1) The Transmission Provider shall not build or own transmission facilities. In
accordance with Sections VI of this Attachment O and Attachment Y of this
Tariff, tThe Transmission Provider, with input from the Transmission Owners and
other stakeholders, shall designate one or more entities to assume the
responsibilities of a Transmission Owner for all Network Upgrades under this
Tariff.
in a timely manner within the SPP Transmission Expansion Plan (“STEP”) one or more
Transmission Owners to construct, own, and/or finance each project in the plan.
2) Any owner of Transmission Facilities, as defined in Attachment AI of this Tariff,
which are or are capable of being used by the Transmission Provider to provide
transmission service pursuant to Part II and Part III of this Tariff, shall have the
right to sign the SPP Membership Agreement as a Transmission Owner and
thereby acquire all of the rights and obligations of a Transmission Owner
described therein, including all of the rights and obligations of a Transmission
Owner described in this Tariff and specifically this Section VI.
3) Each Transmission Owner and Designated Transmission Owner every other entity
designated to construct a project by the Transmission Provider pursuant to this
Section VI shall use due diligence to construct transmission facilities as directed
by the SPP Board of Directors subject to such siting, permitting, and
environmental constraints as may be imposed by state, local and federal laws and
regulations, and subject to the receipt of any necessary federal or state regulatory
approvals. Such construction shall be performed in accordance with Good Utility
Practice, applicable SPP Criteria, industry standards, the applicable Transmission
Owner’s specific reliability requirements and operating guidelines (to the extent
these are not inconsistent with other requirements), and in accordance with all
applicable requirements of federal or state regulatory authorities. Each
Transmission Owner shall be fully compensated to the greatest extent permitted
by the Commission for the costs of construction undertaken by such Transmission
Owner in accordance with this Tariff.
34) A specific endorsed Sponsored Upgrade in the SPP Transmission Expansion Plan
will be deemed approved for construction upon execution of a contract that
financially commits a Project Sponsor to such upgrade. The Transmission
Owner responsible for the Sponsored Upgrade shall be determined as follows:
Comment [s2]: RTWG 8-8-12 modified
Comment [s3]: RTWG 8-8-12 modified
Comment [s4]: RTWG 8-8-12 modified; Do we even need to refer to DTO?
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 9
(i) If the Sponsored Upgrade is a rebuild of an existing facility or utilizes
rights-of-way where facilities exist, the Sponsored Upgrade will be
assigned to the Transmission Owner of the existing facility;.
(ii) If the Sponsored Uupgrade is a new transmission facility, the entity
sponsoring the Sponsored Upgrade may become the Transmission Owner
of the facility if it meets the qualifications to become a Transmission
Owner set forth in accordance with the requirements contained in Section
III.1(.b) of Attachment Y, including executing an SPP Membership
Agreement as a Transmission Owner; or
(iii) If the Transmission Owner is not determined under subsections (i) and (ii)
above, the Transmission Provider will follow the process contained in
Section IV of Attachment Y.
4) After a new transmission project is (i) approved under the SPP Transmission
Expansion Plan or (ii) required pursuant to a Service Agreement or (iii) required
by a generation interconnection agreement to be constructed by a Transmission
Owner(s) other than the Transmission Owner that is a party to the generation
interconnection agreement, the Transmission Provider shall direct the appropriate
Transmission Owner(s) to begin implementation of the project for which financial
commitment is required prior to the approval of the next update of the SPP
Transmission Expansion Plan. At the discretion of the SPP Board of Directors,
the Transmission Provider may direct the appropriate Transmission Owner(s) to
begin implementation of other such approved or required transmission projects for
which financial commitment is not required prior to approval of the next SPP
Transmission Expansion Plan. The direction from the Transmission Provider
shall be provided in writing to the Transmission Owner(s) designated to construct
the project (“Designated Transmission Owner(s)”). The written notification to the
Designated Transmission Owner(s) shall include but not be limited to: (1) the
specifications of the project required by the Transmission Provider and (2) a
reasonable project schedule, including a project completion date (“Notification to
Construct”). If the project forms a connection with facilities of a single
Transmission Owner, that Transmission Owner shall be designated to construct
the project. If the project forms a connection with facilities owned by multiple
Transmission Owners, the applicable Transmission Owners will be designated to
provide their respective new facilities. If there is more than one Transmission
Owner designated to construct a project, the Designated Transmission Owners
will agree among themselves which part of the project will be provided by each
entity. If the Designated Transmission Owners cannot come to a mutual
agreement regarding the assignment and ownership of the project the
Transmission Provider will facilitate their discussion. Each project or segment of
a project being built by a single Designated Transmission Owner shall be
considered a separate project for purposes of Section VI.6 and each Designated
Transmission Owner will receive a separate Notification to Construct for each
project or segment of a project they are responsible to construct.
Comment [s5]: RTWG 8-8-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 10
545) Network Upgrade(s) and Distribution Upgrades (as defined in Attachment V to
the Tariff) identified in a generation interconnection agreement will be
constructed pursuant to the generation interconnection agreement or pursuant to
Section VI.4 of this Attachment OY of this Tariff. Network Upgrades and
Distribution Upgrades (as defined in Attachment V to the Tariff) identified in a
generation interconnection agreement required to be constructed by the
Transmission Owner who is a party to the generation interconnection agreement
shall be constructed pursuant to the generation interconnection agreement. All
other Network Upgrades and Distribution Upgrades (as defined in Attachment V
to the Tariff) identified in a generation interconnection agreement to be
constructed by Transmission Owners not a party to the generation interconnection
agreement shall be constructed pursuant to Section IVVI.4 of this Attachment OY
of this Tariff.
6) In order to maintain its right to construct the project, the Designated Transmission
Owner shall respond within ninety (90) days after the receipt of the Notification
to Construct with a written commitment to construct the project as specified in the
Notification to Construct or a proposal for a different project schedule and/or
alternative specifications in its written commitment to construct (“Designated
Transmission Owner’s proposal”). The Transmission Provider shall respond to
the Designated Transmission Owner’s proposal within ten (10) days of its receipt
of the proposal. If the Transmission Provider accepts the Designated
Transmission Owner’s proposal, the Notification to Construct will be modified
according to the accepted proposal and the Designated Transmission Owner shall
construct the project in accordance with the modified Notification to Construct. If
the Transmission Provider rejects the Designated Transmission Owner’s proposal,
the Designated Transmission Owner’s proposal shall not be deemed an acceptable
written commitment to construct the project. However, the Transmission
Provider’s rejection of such proposal shall not preclude a Designated
Transmission Owner from providing a written commitment to construct the
project after such rejection, provided the subsequent written commitment to
construct the project is made within the ninety day time period after the issuance
of the Notification to Construct.
If a Designated Transmission Owner does not provide an acceptable written
commitment to construct within the ninety (90) day period, the Transmission
Provider shall solicit and evaluate proposals for the project from other entities and
select a replacement designated provider. The Transmission Provider shall solicit
proposals from entities that meet certain specified legal, regulatory, technical,
financial and managerial qualifications, specifically including the following:
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 11
i) Entities that have obtained all state regulatory authority necessary to
construct, own and operate transmission facilities within the state(s) where
the project is located,
ii) Entities that meet the creditworthiness requirements of the Transmission
Provider,
iii) Entities that have signed or are capable and willing to sign the SPP
Membership Agreement as a Transmission Owner upon the selection of its
proposal to construct and own the project, and
iv) Entities that meet such other technical, financial and managerial
qualifications as are specified in the Transmission Provider’s business
practices.
The Transmission Provider shall evaluate each proposal with regard to the cost,
reliability and timeliness of the proposed construction of the project and shall
make a recommendation to the Board of Directors. The Board of Directors shall
thereafter select an entity making a proposal and arrange for that entity to
construct the project and become the Designated Transmission Owner.
At any time, a Designated Transmission Owner may elect to arrange for another
entity or another existing Transmission Owner to build and own all or part of the
project in its place subject to the qualifications in Subsections i, ii, iii, and iv
above.
Nothing in this Section VI.6 shall relieve a Transmission Owner of its obligation
to construct an upgrade as specified in Section VI.2 of this Attachment O and
Section 3.3(a) of the SPP Membership Agreement in the event that no other
qualified entity can be found to construct the project.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 12
ATTACHMENT Y
TRANSMISSION OWNER DESIGNATION PROCESS
I. OVERVIEW OF TRANSMISSION OWNER DESIGNATION PROCESS
1) The Transmission Provider shall designate one or more entities to assume the
responsibilities of a Transmission Owner for new transmission facilities under this
Tariff pursuant to this Attachment Y.
21) The Transmission Provider shall designate a Transmission Owner in accordance
with the process set forth in Section III of this Attachment Y for transmission
facilities approved for construction by the SPP Board of Directors that meet all of
the following criteria:
ia.) ITP Upgrades or high priority upgrades;
iib.) Transmission facilities with a nominal operating voltage of 300 kV or
greater;
iiic.) Transmission facilities that are not a rebuild of an existing facility and do
not use rights-of-way where facilities exist; and
ivd.) Transmission facilities located where the selection of a Transmission
Owner pursuant to Section III of this Attachment Y does not violate state
law where the upgrade is to be built.
32) For upgrades meeting the specifications listed in Section I.2 of this Attachment Y,
if the transmission facility is needed for reliability of the grid, the transmission
facility has a need date that cannot be met if the Transmission Owner Selection
Process in Section III of theis Attachment Y is followed, and no other
transmission or non-transmission mitigation options are available to relieve the
reliability issue to allow sufficient time for the Transmission Owner Selection
Process to proceed, then the Transmission Provider shall select the Transmission
Owner in accordance with Section IVIII of this Attachment Y. Approval of such
action must be made by the SPP Board of Directors.
3) For upgrades not defined in Section I.2, the Transmission Provider shall designate
a Transmission Owner in accordance with the process set forth in Section IV of
this Attachment Y.
4) The designation from the Transmission Provider shall be provided in writing to
implement the construction of a project pursuant to Section V of this Attachment
Y.
5) All costs related to projects that are approved for construction by the
Transmission Provider shall be tracked in accordance with Section VI of this
Attachment Y.
Comment [s6]: RTWG 8-8-12 deleted
Comment [s7]: OTDTF 8-1-12: To come back to this language
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 13
II. DEFINITIONS
The terms used in this Attachment Y shall have the meanings as defined in this Section II
or as otherwise defined in this Tariff.
Applicant Transmission Owner:
An entity that has submitted an application to the Transmission Provider to be a Qualified
Transmission Owner.
Competitive Upgrades:
Those upgrades defined in Section I.21 of this Attachment Y or an upgrade for which the
Transmission Provider must select a replacement Transmission Owner pursuant to
Section IV.3 of this Attachment Y.
Guaranty:
This term shall have the meaning given in Attachment X of this Tariff.
Guarantor:
This term shall have the meaning given in Attachment X of this Tariff.
Industry Expert Panel:
The panel of industry experts designated by the Oversight Committee to review Requests
for pProposals (“RFPs”) in the Transmission Owner Selection Process and recommend to
the Board of Directors Selected Designated Transmission Owners to the Board of
Directorsfor Competitive Upgrades.
Not-For- Profit:
This term shall have the meaning given in Attachment X of this Tariff.
Comment [s8]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 14
Qualified Transmission Owner:
An entity that has been determined by the Transmission Provider to satisfy the
Transmission Owner qualification criteria set forth in this Attachment Y.
Selected Transmission Owner
An entity that has been selected by the Board of Directors to construct a transmission project but
that has not yet accepted an NTC.
Transmission Owner Selection Process:
The process of determining the Transmission Owner for Competitive Upgrades pursuant
to Section III.2 of this Attachment Y.
III. TRANSMISSION OWNER SELECTION PROCESS FOR COMPETITIVE
UPGRADES
1) Transmission Owner Application and Qualification Process
a) Application
Any entity that desires to participate in the Transmission Owner Selection
Process outlined in this Section III must submit an application and
supporting materials to demonstrate that it satisfies the qualification
criteria set forth in this Section III. The Transmission Provider will
evaluate the Applicant Transmission Owner’s application and supporting
materials and determine whether the Applicant Transmission Owner
satisfies the qualification criteria to be a Qualified Transmission Owner
(“QTO”) to participate in the Transmission Owner Selection Process in
accordance with the timeline set out in Section I.1(c) of this Attachment
Y.
(i) Any entity wishing to participate in the Transmission Owner
Selection Process, whether a current Transmission Owner or
another entity, must submit an application to the Transmission
Provider in the form provided on the Transmission Provider’s
website no later than June 30 of the year prior to the calendar year
in which the Applicant Transmission Owner wishes to participate
in the Transmission Owner Selection Process. The Applicant
Transmission Owner shall submit an application fee with its
application equal to the amount of the SPP annual membership fee.
Comment [s9]: Cite check
Comment [s10]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 15
If the Applicant Transmission Owner is a member of SPP and is
current in payment of its annual membership fee, then no
application fee shall be required. The amount of the application
fee shall be posted on the Transmission Provider’s website as part
of the application form.
(ii) After the Transmission Provider determines that the entity is
qualified to be a QTO, the entity shall remain a QTO for the five
calendar years starting January 1 subsequent to that determination,
subject to the annual certification process in Section III.1(.c) of this
Attachment Y and termination process pursuant to Section III.1(.d)
of this Attachment Y. To be considered for continuation of QTO
status for a subsequent five-year periodAfter five years, the QTO
must submit a full application package in accordance with Section
III.1.a.i of this Attachment Y and be re-approved as a QTO by
June 30 of the fifth year of the current term. The Transmission
Provider will evaluate the application in accordance with Section
III.1.c of this Attachment Y.
(iii) Upon approval of anAny application from an Applicant
Transmission Owner to become a QTOwill be posted on, the
Transmission Provider’s will post the application on its website no
later than July 15, subject to any applicable confidentiality
protections.
b) Qualification Criteria
An Applicant Transmission Owner must demonstrate that it meets the
following qualification criteria:
(i) SPP Membership Criterion
An Applicant Transmission Owner must demonstrate that it is an
SPP Member or is willing to sign the SPP Membership Agreement
as a Transmission Owner if the Applicant Transmission Owner is
selected as part of the Transmission Provider’s Transmission
Owner Selection Process. Any NTC issued to an Applicant
Transmission Owner that is not an SPP Member will be contingent
upon the Applicant Transmission Owner executing the SPP
Membership Agreement as a Transmission Owner and paying all
required membership fees.
(ii) Financial Criteria
Comment [s11]: RTWG 8-9-12 modified
Comment [s12]: RTWG 8-9-12 modified
Comment [s13]: RTWG 8-9-12 modified.
Insert in NTC Section:
Any NTC issued to a QTO that is not an SPP
Member will be contingent upon the QTO
executing the SPP Membership Agreement as
a Transmission Owner and paying all required
membership fees.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 16
An Applicant Transmission Owner must demonstrate that it meets
one of the following financial criteria:
(a1) A senior unsecured investment grade rating or an issuer
rating of BBB- or equivalent from a “nationally recognized
statistical rating organization” as defined in Attachment X
of this Tariff. If an Applicant Transmission Owner
maintains a rating from all three approved nationally
recognized statistical rating organizations, it must maintain
at least two ratings in the investment grade range. If an
Applicant Transmission Owner maintains a rating from two
of the approved nationally recognized statistical rating
organizations, it must maintain at least one of those ratings
in the investment grade range.
(b2) If the Applicant Transmission Owner does notcannot
satisfy the requirement set forth in (i1) above, a Guaranty
from its parent or affiliated organization that possesses an
investment grade rating or an issuer rating of BBB- or
equivalent from a “nationally recognized statistical rating
organization” as defined in Attachment X of this Tariff. A
Guaranty obligates the Guarantor to satisfy the obligations
of the guarantee entity. Parent Guaranties are acceptable
where the Applicant Transmission Owner is a subsidiary,
joint venture, or affiliate of the parent Guarantor. The
Guaranty may be cancelled at any time that the Applicant
Transmission Owner establishes an investment grade rating
as discussed in Section III.21(b)(ii)(1) of this Attachment
Y. The Guaranty will be in a form consistent with
Appendix D of Attachment X of this Tariff and will satisfy
the following requirements:
(1a) Be duly authorized by the Guarantor and
signed by an officer of the Guarantor;
(2b) State a minimum effective period of five (5)
years, or provide for automatic renewal
subject to cancellation with no less than
sixty (60) days notice and provided that in
all events the Guaranty is effective for all
obligations of the Applicant Transmission
Owner undertaken prior to cancellation;
(3c) Include certification of the corporate
Comment [s14]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 17
secretary of the Guarantor that the
execution, delivery, and performance of the
Guaranty have been duly authorized;
(4d) Certify that the Guaranty does not violate
other undertakings or requirements
applicable to the Guarantor and is
enforceable against the Guarantor in
accordance with its terms;
(5e) Obligate the guarantor to submit a
representation letter annually indicating any
material changes from the information
provided in the Applicant Transmission
Owner’s application related to the Guarantor
and Guaranty, and representing that the
Guarantor continues to satisfy the financial
criteria;
(6f) Secure all obligations of the Applicant
Transmission Owner under or in connection
with this Tariff and other agreements;
(7g) Be supported by adequate consideration and
be otherwise binding as a matter of law; and
(8h) Include as an attachment a resolution of the
board of directors or other governing body
of the Guarantor authorizing the Guaranty.
(c3) If the Applicant Transmission Owner cannotdoes not
satisfy the requirements set forth in (i1) or (ii2) above, a
formal letter of reference from a commercial bank
evidencing an existing line of credit from commercial
banks (or access to an existing line of credit through Inter-
company agreements with a Parent or Affiliate), or bonding
indication letter from an insurance or surety company either
of which indicate a willingness to extend credit to the
Applicant Transmission Owner in an amount of at least
$25,000,000 (for bank) or willingness to provide a surety
bond in the amount of at least $25,000,000 (for an
insurance or surety company). Commercial bank reference
letters acceptable to the Transmission Provider must be
issued by a financial institution organized under the laws of
Comment [s15]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 18
the United States or any state of the United States or the
District of Columbia or a branch or agency of a foreign
commercial bank located in the United States, with a
minimum corporate debt rating of A- or equivalent from a
“nationally recognized statistical rating organization” as
defined in Attachment X of this Tariff and total assets of at
least $10 billion. Bonding indication letters acceptable to
the Transmission Provider must be issued by an insurance
or surety company with a minimum financial strength
rating of A- and a financial size category of X from the
A.M. Best Company.
(d4) If the Applicant Transmission Owner is a municipality, a
cooperative, or other Not-For-Profit entity, the Applicant
Transmission Owner may satisfy the financial criteria
requirement by providing evidence of direct rate-setting
authority or taxing authority. The Applicant Transmission
Owner must possess this authority and cannot rely on an
affiliation withto another entity that possesses rate-setting
or taxing authority.
(iii) Managerial Criteria
An application from an Applicant Transmission Owner must
include a showing that the Applicant Transmission Owner has
requisite expertise by describing its capability, perspective, and
experience in the following areas:
(a1) Transmission Project Development
(ia) engineering, permitting, environmental, equipment
and material procurement, project management
(including scope and schedule management),
construction, commissioning of new facilities,
technology content (e.g., experience with
technologies such as special conductors,
terminations, structures, static var compensators);
and
(iib) routing, surveying, rights-of-way, eminent domain,
and real estate acquisition experience, including
process for obtaining easements.
Comment [s16]: RTWG 8-9-12 modified
Comment [W&T17]: OTDTF: Does the group want to move the financial criteria to its own Attachment of the Tariff?
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 19
(2b) Internal safety program, contractor safety program, safety
performance record (program execution).
(c3) Operations Expertise: control center operations (staffing,
etc.), NERC compliance process and compliance history,
registration or the ability to register for compliance with
applicable NERC Reliability Standards, storm/outage
response and restoration plan, record of past reliability
performance, statement of which entity will be operating
completed transmission facilities, staffing, equipment, and
crew training.
(d4) Maintenance Expertise: staffing and crew training,
transmission facility and equipment maintenance, record of
past maintenance performance, NERC compliance process
and history, statement of which entity will be performing
maintenance on completed transmission facilities.
(e5) Ability to comply with Good Utility Practice, SPP Criteria,
industry standards, and applicable local, state, and federal
requirements.
(f6) Any other relevant project development experience that the
Applicant believes may demonstrate its expertise in the
above areas.
An Applicant Transmission Owner can demonstrate that it meets
the managerial criteria either on its own or by relying on an entity
or entities with whom it has a corporate affiliation or contractual
relationship (“Alternate Qualifying Entity(ies)”). The Alternate
Qualifying Entity(ies) relied upon by the Applicant Transmission
Owner must independently satisfy the managerial criteria for
which the Applicant Transmission Owner is relying upon the
Alternate Qualifying Entity(ies) to satisfy. If the Applicant
Transmission Owner seeks to satisfy the managerial criteria in
whole or in part by relying on one or more Alternate Qualifying
Entity(ies), the Applicant Transmission Owner must submit: (1)
materials to demonstrate that the Alternate Qualifying Entity(ies)
satisfy(ies) the managerial criteria for which the Applicant
Transmission Owner is relying upon the Alternate Qualifying
Entity(ies) to satisfy; and (2) an executed agreement that
contractually obligates the Alternate Qualifying Entity(ies) to
perform the function(s) for which the Applicant Transmission
Owner is relying upon the Alternate Qualifying Entity(ies) to
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 20
satisfywas deemed to satisfy the qualification criteria if the
Applicant Transmission Owner is ultimately selected to construct a
transmission project.
c) Determination of Qualifications
(i) Upon receiving an application to become a QTO, the Transmission
Provider will review the application to determine whether the
Applicant Transmission Owner satisfies the Transmission Owner
qualification criteria set forth in Section III.1(.b) of this
Attachment Y. The Transmission Provider will notify each
Applicant Transmission Owner of its determination no later than
September 30 of the year in which the application was submitted.
(ii) If the Transmission Provider determines that the Applicant
Transmission Owner fails to satisfy one or more of the
qualification criteria, the Transmission Provider will inform the
Applicant Transmission Owner of such deficiency(ies) and the
Applicant Transmission Owner will be allowed to cure any
deficiency(ies) within thirty (30) calendar days of notice from the
Transmission Provider by providing any additional information
that the Applicant Transmission Owner believes cures the
deficiency(ies). The Transmission Provider will review the
information provided by the Applicant Transmission Owner and
render a final determination of whether the Applicant Transmission
Owner satisfies the qualification criteria within forty-five (45)
calendar days of Transmission Provider’s receipt of the additional
information. If, after attempting to cure the deficiency(ies), the
Applicant Transmission Owner still has not satisfied the
qualification criteria, the Applicant Transmission Owner will be
disqualified from the Transmission Owner Selection Process for
the following year.
(iii) Upon the Transmission Provider’s determination that an Applicant
Transmission Owner satisfies the qualification criteria, the
Transmission Provider shall notify the Applicant Transmission
Owner that it has been determined to be a QTO and canto
participate in the Transmission Owner Selection Process. By
December 31 of each year, Tthe Transmission Provider shall post
on its website a list of all QTOs by December 31 of each year for
the Transmission Owner Selection Process that are eligible to
participate in the next calendar year for any Competitive
Upgradewill commence after approval of the next SPP
Transmission Expansion Plan.
Comment [s18]: RTWG 8-9-12 modified
Comment [s19]: RTWG 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 21
(iv) If the Applicant Transmission Owner disagrees with the
Transmission Provider’s determination under Section III.1.c(ii) of
this Attachment Y, the Applicant Transmission Owner may initiate
dispute resolution procedures under this Section III.1.c(iv) and
Section 12 of this Tariff. Any dispute regarding the Transmission
Provider’s determination of the Applicant Transmission Owner’s
qualifications shall first be referred to a designated senior
representative of the Transmission Provider and a senior
representative of the Applicant Transmission Owner for resolution
on an informal basis as promptly as practicable. In the event the
designated representatives are unable to resolve the dispute within
thirty (30) days [or such other period upon which the Transmission
Provider and Applicant Transmission Owner agree] by mutual
agreement, such dispute may be submitted to arbitration and
resolved in accordance with the arbitration procedures set forth in
Sections 12.2 through 12.5 of this Tariff.
d) Annual RecCertification Process and Reporting Requirements
and Termination of QTO Status
i) (i) By June 30 of each year, each QTO must submit to the
Transmission Provider a notarized letter signed by an authorized
officer of the QTO certifying that the QTO continues to meet the
current qualification criteria or indicating any material changes
tofrom the information provided in its application. The QTO will
pay an annual certification fee equal to the amount of the SPP
annual membership fee. If the QTO is a Member of SPP and is
current in payment of its annual membership fee, then no
certificationapplication fee will be required.
ii) If at any time there is a change to the information provided in its
application, a QTO shall be required to inform the Transmission
Provider within seven calendar days so that the Transmission
Provider may determine whether the QTO continues to satisfy the
Transmission Owner qualification criteria. Upon notification of
any such change, the Transmission Provider will have the option
to: (a) determine that the change does not affect the QTO’s status;
(b) suspend the QTO’s eligibility to participate in the Transmission
Owner Selection Process until the QTO has cured any deficiency
in its qualifications to the Transmission Provider’s satisfaction; (c)
allow the QTO to continue to participate in the Transmission
Owner Selection Process for a limited time period, as specified by
the Transmission Provider, while the QTO cures the deficiency to
Comment [s20]: OTDTF 8-9-12 deleted
Comment [s21]: RTWG 8-9-12 modified
Comment [s22]: RTWG 8-9-12 modified
Comment [s23]: OTDTF 8-9-12 modified
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 22
the Transmission Provider’s satisfaction; or (d) terminate the QTO
status in accordance with Section III.1.e of this Attachment Y.
e) Termination of QTO Status
(ii) The Transmission Provider may terminate a QTO’s status if the
QTO: (1) fails to submit its annual certification letter; (2) fails to pay the
applicable fee as required by Section III.1(d) of this Attachment Y; (3)
experiences a change in its qualifications and the Transmission Provider
determines that it may no longer be a QTO; or (24) informs the
Transmission Provider that it no longer desires to be a QTO;; or (3) fails to
submit its annual certification letter and pay the applicable fee as required
by Section III.1(d)(i) of this Attachment Y or (5) fails to notify the
Transmission Provider of a change to the information provided in its
application in accordance with Section III.1.d of this Attachment Y.
f) Dispute Resolution
If the Applicant Transmission Owner or QTO (“Affected Party”) disagrees
with the Transmission Provider’s determination regarding its
qualifications under Section III.1 of this Attachment Y, the Affected Party
may initiate dispute resolution procedures. Any such dispute shall first be
referred to a designated senior representative of the Transmission Provider
and a senior representative of the Affected Party for resolution on an
informal basis as promptly as practicable. In the event the designated
representatives are unable to resolve the dispute within thirty (30) days (or
such other period upon which the Transmission Provider and the Affected
Party agree) by mutual agreement, such dispute may be submitted to
arbitration and resolved in accordance with the arbitration procedures set
forth in Sections 12.2 through 12.5 of this Tariff.
[RTWG REVIEW CONCLUDED 8-9-12]
[OTDTF REVIEW OF THE PRIOR DRAFT CONCLUDED 8-9-12]
2) Transmission Owner Selection Process
a) Overview
Once a Competitive Upgrade has been approved by the Board of
Directors, the Transmission Provider will issue a Request for Proposals
(“RFP”) for the Competitive Upgrade as specified in this Section III of
Attachment Y.
Comment [s24]: OTDTF 8-9-12 modified
Comment [s25]: RTWG 8-9-12 modified
Comment [s26]: OTDTF 8-9-12 OTDTF modified
Comment [BGF27]: RTWG Began Reiew 08/22/12
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 23
b) Industry Expert Panel
i) On an annual basis, the Oversight Committee or its successor shall
identify a pool of candidates to serve as industry experts on one or
more Industry Expert Panel(s) (“IEP”) to evaluate proposals that
are submitted in response to any RFP issued by the Transmission
Provider pursuant to this Section III of Attachment Y. IEP
candidates shall have expertise in one or more of the following
areas: (1) electric transmission engineering design; (2) electric
transmission project management and construction; (3) electric
transmission operations; (4) electric transmission rate design and
analysis; and (5) electric transmission finance.
ii) To qualify for an IEP, each industry expert must disclose to the
Oversight Committee any affiliation with any SPP stakeholder or
any QTO. In the event an affiliation exists, the Oversight
Committee will evaluate whether the affiliation may adversely
impact an industry expert’s ability to independently evaluate RFP
proposals, and the Oversight Committee may disqualify that
industry expert.
iii) The Oversight Committee shall create an IEP from the IEP
candidate pool to evaluate proposals resulting from the RFPs. The
IEP shall consist of three (3) to five (5) industry experts. Upon
Board of Directors approval, the Oversight Committee may create
additional IEPs. Each IEP member must sign a confidentiality
agreement prior to participating in the Transmission Owner
Selection Process.
iv) If a member of a designated IEP becomes affiliated with a
stakeholder or QTO, the IEP member shall immediately notify the
Transmission Provider staff and the Oversight Committee. The
Oversight Committee will shall evaluate whether any affiliation
between a member of a designated IEP and a stakeholder or QTO
may adversely impact the IEP member’s ability to independently
evaluate RFP proposals reviewed by that IEP. In such the event,
that the Oversight Committee determines that any such affiliation
adversely impacts the IEP member’s ability to evaluate proposals
independently, the Oversight Committee shall may disqualify
remove the IEP member from that IEP. and, If necessary, the
Oversight Committee may designate a replacement another
candidate IEP member from the IEP candidate pool if necessary.
Each IEP member must sign a confidentiality agreement prior to
participating in the Transmission Owner Selection Process.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 24
v) The IEP shall be the primary source from which the Board of
Directors shall obtain recommendations of which RFP respondents
are selected to construct, own, operate, and maintain Competitive
Upgrades. The Transmission Provider shall facilitate the IEP’s
efforts to develop recommendations to the Board of Directors. The
IEP will evaluate all aspects of each proposal submitted for its
review. Once all evaluations are complete, the IEP will develop a
single recommendation for the Board of Directors consisting of a
selected its recommended RFP proposal and an alternativee RFP
proposal for each Competitive Upgrade.
c) Request for Proposals
The Transmission Provider shall issue Aan RFP for each Competitive
Upgrade to all QTOs. will be issued to allow QTOs to submit proposals to
undertake the obligations of a Transmission Owner for each Competitive
Upgrade. The RFP will shall be a standard form that the QTO must
complete and submit to participate in the Transmission Owner Selection
Process for each Competitive Upgrade.
The RFP shall contain information, including, but not limited to:
i) An overview of the purpose for the RFP including the need for the
transmission project(s), Competitive Upgrade, regulatory context
and authority, confidentiality statement, and other necessary
information.
ii) A deadline for all RFP proposal submissions and minimum RFP
proposal submission requirements.
iii) Minimum design specifications.
iv) A requirement that the QTO provide the following information
specific to the Competitive Upgrade for which it submits a
proposal:
(1) financial information specific to the Competitive Upgrade
for which it submits a proposal, including but not limited to
demonstration of financing and itemized revenue
requirement calculations;
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 25
(2) engineering information specific to the Competitive
Upgrade for which it submits a proposal, including but not
limited to engineering design of the project and technical
requirements;
(3) construction information specific to the Competitive
Upgrade for which it submits a proposal, , including but not
limited to anticipated project timeline, demonstration of
past transmission construction experience, equipment
acquisition processes, description of applicable rights-of-
way and real estate acquisition process, description of
routing process, description of permitting, description of
construction clearance processes, and identification of
responsible party for construction inspection;
(4) operations and maintenance information specific to the
Competitive Upgrade for which it submits a proposal,
including but not limited to demonstration of operations,
statement of which entity will be operating and maintaining
the transmission facility, storm and outage response plan,
maintenance plan, staffing, equipment, crew training, and
record of past maintenance and outage performance; and
(5) safety information, including but not limited to
identification of the internal safety program, contractor
safety program, and safety performance record: and.
(6) identification of information in the RFP proposal that the
RFP respondent considers to be confidential.
v) Information exchange requirements including but not limited to,
such as identification of data required to be provided to the
Transmission Provider in accordance with NERC reliability
standards, data of design of the facilities for the Transmission
Provider, and CEII requirements.
vi) A description of the proposal evaluation procedure, including the
statement of proposal evaluation methodology ,and criteria for
acceptable proposals, and identification of applicable proposal
evaluation fees.
vii) A requirement that the respondent agree to pay the RFP fee for
each RFP proposal submitted, as outlined in Section III.2(e) of this
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 26
Attachment Y, including the initial deposit at the time of
submission of the RFP proposal.
d) RFP Process and Timeline
i) The Transmission Provider will issue each RFP on or before the
later of: (1) seven (7) calendar days after approval of the
Competitive Upgrade by the Board of Directors; or (2) eighteen
(18) months prior to the date that anticipated financial expenditure
is needed on a Competitive Upgrade. The RFP will only be issued
to QTOs.
ii) Each RFP respondent shall submit a complete proposal in response
to the RFP within ninety (90) calendar days of the date the RFP is
issued (“RFP Response Window”).
iii) The Transmission Provider shall not disclose any information
contained in any RFP proposal, except to the IEP, until the
issuance of the IEP reports in accordance with Section
III.2(d))(v)(2) of this Attachment Y.
[RTWG REVIEW CONCLUDED 8-22-12]
iiiiv) The Transmission Provider will immediately review each RFP
proposal for completeness, and will promptly notify the RFP
respondent if its proposal is incomplete. The RFP respondent may
submit information in order to complete the proposal if such
submittal is made within the RFP Response Window. Any RFP
respondent that fails to submit a complete proposal within the RFP
Response Window will be deemed to have waived its right to
respond to the RFP.
ivv) If the Transmission Provider does not receive any proposals in
response to an RFP, the Transmission Provider shall inform the
Board of Directors and shall select the DTO in accordance with the
process set forth in Section IV of this Attachment Y.
vvi) Upon the closing of the RFP Response Window, the Transmission
Provider shall provide the RFP proposals to the IEP. The IEP shall
review, score, and rank all RFP proposals and submit its
recommendation to the Board of Directors based upon selection
criteria outlined in Section III.2(f) of this Attachment Y. The
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 27
IEP’s recommendation shall be submitted to the Board of Directors
within sixty (60) calendar days of the initiation of the IEP’s review
(“Review Period”). Upon IEP request, the Oversight Committee
may extend the Review Period an additional thirty (30) calendar
days. Notification of such extension shall be provided to the Board
of Directors and posted on the Transmission Provider’s website.
The identity of RFP respondents shall not be disclosed to the
Board of Directors as part of the IEP’s recommendation.
(1) During its review, the IEP may initiate communication with
RFP respondents to obtain answers to any additional
questions about proposals, and any such communications
shall be documented by the IEP. Lobbying of the IEP by,
or on behalf of, the RFP respondents is prohibited, and may
result in disqualification of the RFP respondent by the
Transmission Provider from the RFP process. The IEP
recommendation shall score and rank each RFP proposal in
a non-discriminatory manner based upon the information
supplied in the RFP proposal or obtained through during
the Review Period.
(2) The IEP will compile an internal report for the
Transmission Provider detailing the process, data, results of
its deliberations, and its recommendationed of a selected
RFP proposal and an alternate RFP proposal for each
Competitive Upgrade. The Transmission Provider shall be
responsible for producing two redacted versions of the
internal report, a Board of Directors report and a public
report. The Board of Directors report shall exclude the
names of the RFP respondents. The public report shall
exclude the names of RFP respondents and any confidential
information obtained during the Transmission Owner
Selection Process. No later than fourteen (14) calendar
days prior to the Board of Directors meeting in which the
transmission owner selection will be made, the public
report will be posted on the Transmission Provider’s
website and the Board of Directors report will be provided
to the Board of Directors.
vii) The Board of Directors shall select an RFP proposal (“Selected
RFP Proposal”) and an alternate RFP proposal for each
Competitive Upgrade based primarily on the information provided
by the IEP. The Transmission Provider shall issue written
notification to the RFP respondent that submitted the sSelected
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 28
RFP pProposal that it has been chosen by the Board of Directors to
become the DTO for the Competitive Upgrade (“Selected RFP
Respondent”). Within seven (7) calendar days of receiving such
notice, the sSelected RFP rRespondent shall sign any necessary
agreement(s) to assume all of the responsibilities of a Transmission
Owner related to the Competitive Upgrade pursuant to the SPP
Membership Agreement and this Tariff and shall become the DTO
for the Competitive Upgrade.
viii) The sSelected RFP rRespondent shall be deemed to have waived
its right to become the DTO if, within seven (7) calendar days of
receiving such notice, the sSelected RFP rRespondent: (1) does not
respond to such notice from the Transmission Provider; (2) notifies
the Transmission Provider that it is no longer willing to become
the Transmission Owner for the Competitive Upgrade; or (3) is
unwilling to sign the necessary agreement(s). Upon such
circumstances, the Transmission Provider shall notify the Board of
Directors.
viiiix) If the sSelected RFP rRespondent has waived its right to become
the DTO pursuant to Section III.2(d)(viii) of this Attachment Y,
the Transmission Provider shall issue written notification to the
RFP respondent that submitted the alternate RFP proposal that it
has been selected to become the DTO for the Competitive
Upgrade. The RFP respondent that submitted the alternate RFP
proposal shall be deemed to have waived its right to become the
Transmission OwnerDTO if, within seven (7) calendar days of
receiving such notice, the RFP respondent that submitted the
alternate RFP proposal: (1) does not respond to such notice from
the Transmission Provider; (2) notifies the Transmission Provider
that it is no longer willing to become the Transmission Owner for
the Competitive Upgrade; or (3) is unwilling to sign the necessary
agreement(s). Upon such circumstances, the Transmission
Provider shall notify the Board of Directors of the results, and the
Transmission Provider will shall determine the DTO in accordance
with the process set forth in Section IV of this Attachment Y.
ix) The DTO for a Competitive Upgrade cannot assign the
Competitive Upgrade to another entity.
e) RFP Fee
Each RFP proposal shall be assessed a fee to compensate the
Comment [s28]: OTDTF 8-15-12: Need to include additional detail in the SPP Business Practices; specific costs to be included.
Comment [s29]: OTDTF 8-15-12: May consider moving the RFP Fees section earlier in the draft.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 29
Transmission Provider for all costs incurred to administer the RFP process
for each Competitive Upgrade. Initially, each RFP respondent shall
submit a deposit along with each proposal, which shall be equal to the
Transmission Provider’s estimate of the fee for participation in the RFP
process. The RFP costs will be determined at the completion of the
process, and all RFP respondents will make additional payments or obtain
refunds based on the reconciliation of fees deposits collected and actual
RFP costs.
The costs shall be allocated to each proposal on a pro-rata share basis,
calculated by taking the total RFP process costs for each Competitive
Upgrade and dividing by the number of proposals submitted for that
Competitive Upgrade.
f) Transmission Owner Selection Criteria and Scoring
i) The IEP will develop a final score for each RFP proposal and
provide its recommended a RFP proposal and an alternate RFP
proposal to the Board of Directors for each Competitive Upgrade.
The IEP evaluation and recommendation shall not be administered
in an unduly discriminatory manner. The RFP proposal with the
highest total score may not always be recommended. The IEP may
recommend that any RFP proposal be eliminated from
consideration due to a low score in any individual evaluation
category.
ii) The IEP may award up to one thousand (1000) base points for each
RFP proposal. An additional one hundred (100) points are
available to provide an incentive for stakeholders to share their
ideas and expertise to promote innovation and creativity in the
planning process. Additional details on each evaluation category
are provided in the Transmission Provider’s business practices.
iii) Base Points: The evaluation categories and maximum base points
for each category are listed below.
(1) Engineering Design (Reliability/Quality/General Design),
200 points: Measures the quality of the design, material,
technology, and life expectancy of the Competitive
Upgrade. Criteria considered in this evaluation category
shall include, but not be limited to:
(a) Type of construction (wood, steel, design loading,
etc.);
(b) Losses (design efficiency);
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 30
(c) Estimated life of construction; and
(d) Reliability/quality metrics.
(2) Project Management (Construction Project Management),
200 points: Measures a RFP respondent’s expertise in
implementing construction projects similar in scope to the
Competitive Upgrade that is the subject of the RFP.
Criteria considered in this evaluation category shall
include, but not be limited to:
(a) Environmental;
(b) Rights-of-way acquisition;
(c) Procurement;
(d) Project scope;
(e) Project development schedule (including obtaining
necessary regulatory approvals);
(f) Construction;
(g) Commissioning;
(h) Timeframe to construct; and
(i) Experience/track record.
(3) Operations (Operations/Maintenance/Safety), 250 points:
Measures safety and capability of a RFP respondent to
operate, maintain, and restore a transmission project.
Criteria considered in this evaluation category shall
include, but not be limited to:
(a) Control center operations (staffing, etc.);
(b) Storm/outage response plan;
(c) Reliability metrics;
(d) Restoration experience/performance;
(e) Maintenance staffing/training;
(f) Maintenance plans;
(g) Equipment;
(h) Maintenance performance/expertise;
(i) NERC compliance-process/history;
(j) Internal safety program;
(k) Contractor safety program; and
(l) Safety performance record (program execution).
(4) Rate Analysis (Cost to Customer), 225 points: Measures a
RFP respondent’s cost to construct, own, and operate the
transmission project that is the subject of the RFP over a
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 31
forty (40) year period. Criteria considered in this
evaluation category shall include, but not be limited to:
(a) Estimated total cost of project;
(b) Financing costs;
(c) FERC incentives;
(d) Revenue requirements;
(e) Lifetime cost of the project to customers;
(f) Return on equity;
(g) Material on hand, rights-of-way approval, assets on
hand; and
(h) Cost certainty guarantee.
(5) Finance (Financial Viability and Creditworthiness), 125
points: Measures a RFP respondent’s ability to obtain
financing for a transmission project that is the subject of the
RFP. Criteria considered in this evaluation category shall
include, but not be limited to:
(a) Evidence of financing;
(b) Material conditions;
(c) Financial/business plan;
(d) Pro forma financial statements;
(e) Expected financial leverage;
(f) Debt covenants;
(g) Projected liquidity;
(h) Dividend policy; and
(i) Cash flow analysis
iv) Incentive Points: An Each RFP respondent that originally
suggested an
upgrade during the ITP process (pursuant to Section – of
Attachment O) that was selected and approved as a Competitive
Upgrade shall receive one hundred (100) additional incentive
points in the Transmission Owner Selection Process for that
Competitive Upgrade. To demonstrate eligibility for the incentive
points, the RFP respondent must document in its RFP response that
it was the entity that suggested the upgrade and that it is seeking
incentive points. The Transmission Provider shall confirm such
eligibility and inform the IEP.
During the ITP process, the Transmission Provider will notify
stakeholders of identified transmission needs and provide a
transmission planning response window of thirty (30) days to
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 32
allow stakeholders to submit transmission project proposals to
meet those needs. Any proposals received by the Transmission
Provider will be held in confidence until after the thirty (30) day
response window. Each proposal must provide sufficient
information to facilitate the Transmission Provider’s evaluation of
the proposed transmission project(s). This information should
confirm that the proposed transmission project(s), at a minimum,
mitigates an issue that was observed in the ITP process, and shall
include: a description of the issue(s) identified in the ITP Process
to be addressed by the proposed project; notification of any
changes in modeling assumptions from those used in the current
ITP process; full description of project; required current ampacity
(capacity) of project; any known environmental impacts caused by
the addition of the project; results of transmission project
economic analysis if applicable; and any other information
available to support the selection of the project.
g) Failure of a Transmission Owner to Complete the Competitive
Upgrade
If, after accepting the NTC, the DTO cannot or is unwilling to complete
the Competitive Upgrade as directed by the Transmission Provider, the
Transmission Provider shall evaluate the status of the Competitive
Upgrade and may assign the project Competitive Upgrade to a new entity.
If the Transmission Provider has determined that there is sufficient time
for the selection process to be completed and the project Competitive
Upgrade constructed placed in service prior to the required need date as
determined by the Transmission Provider, the process described in Section
III of this Attachment Y shall be used to designate another entity to
become the a new DTO for the Competitive Upgrade. If sufficient time is
not available, the Transmission Provider shall designate a new DTO for
the Competitive Upgrade in accordance with Section IV of this
Attachment Y.
[OTDTF: DO WE NEED TO ADD THAT A COMPETITIVE PROJECT CANNOT BE
NOVATED OR ASSIGNED?]
IV. INCUMBENT TRANSMISSION OWNER DESIGNATION PROCESS
1) If the project forms a connection with facilities of a single Transmission Owner,
that Transmission Owner shall be selected to be the DTO. If the project forms a
connection with facilities owned by multiple Transmission Owners, the applicable
Comment [s30]: OTDTF 8-15-12: This section needs to be moved to Attachment O.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 33
Transmission Owners shall be selected to be the DTOs.. If there is more than one
Transmission Owner selected to construct a project, the DTOs will agree among
themselves which part of the project will be provided by each entity. If the DT
Os cannot come to a mutual agreement regarding the assignment and ownership
of the project, the Transmission Provider will facilitate their discussion. Each
DTO will receive an NTC, in accordance with Section V of this Attachment Y,
for each project or segment of a project that the DTO is responsible to construct.
2) In order to maintain its right to construct the project, the DT O shall respond
within ninety (90) days after the receipt of the NTC with a written commitment to
construct the project as specified in the NTC or a proposal for a different project
schedule and/or alternative specifications in its written commitment to construct
(“DTO’s proposal”). The Transmission Provider shall respond to the DTO’s
proposal within ten (10) days of its receipt of the proposal. If the Transmission
Provider accepts the DTO’s proposal, the NTC will be modified according to the
accepted proposal and the DT O shall construct the project in accordance with the
modified NTC. If the Transmission Provider rejects the DTO’s proposal, the
DTO’s proposal shall not be deemed an acceptable written commitment to
construct the project. However, the Transmission Provider’s rejection of such
proposal shall not preclude a DTO from providing a written commitment to
construct the project after such rejection, provided the subsequent written
commitment to construct the project is made within the ninety (90) day time
period after the issuance of the NTC.
3) If a DTO does not provide an acceptable written commitment to construct within
the ninety (90) day period, the Transmission Provider shall select a replacement
Transmission Owner in accordance with Section III of this Attachment Y.
4) At any time after accepting an NTC, a DTO may assign a project by arranging for
another entity to build and own all or part of the project in its place subject to the
following conditions:
a) Prior to starting its construction activity, the entity must have obtained all
state regulatory authority necessary to construct, own and operate
transmission facilities within the state(s) where the project is located;
b) The entity meets the financial requirements of the Transmission Provider
as specified in Section III of this Attachment Y;
c) The entity has signed or is capable and willing to sign the SPP
Membership Agreement as a Transmission Owner; and
d) The entity must meet such other qualifications as specified in Section III
of this Attachment Y.
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 34
The Transmission Provider shall conduct the review necessary to ensure that the
proposed entity meets the above conditions, and approval of the assignment shall
be contingent upon satisfactorily meeting the conditions. With an assignment, the
DTO remains ultimately responsible to construct, own, and operate the project if
the assignee fails to fulfill its obligations.
5) Nothing in this Section IV shall relieve a Transmission Owner of its obligations
to construct an upgrade as specified in this Attachment Y O, Section VI.3 of this
Tariff and Section 3.3(a) of the SPP Membership Agreement in the event that no
other qualified entity can be found to construct the project.
V. NOTIFICATION TO CONSTRUCT PROCESS
1) Once a Transmission Owner is selected to construct a project through Section III
or Section IV of this Attachment Y, the Transmission Provider shall issue an NTC
for project(s) for which financial commitment is required prior to the approval of
the next update of the annual SPP Transmission Expansion Plan report. At the
discretion of the SPP Board of Directors, the Transmission Provider may issue an
NTC to the appropriate Transmission Owner to begin implementation of other
such approved or required transmission project(s) for which financial
commitment is not required prior to approval of the next annual SPP
Transmission Expansion Plan report.
2) The Transmission Provider shall issue an NTC to each entity selected to become
the DTO for each transmission
project. The NTC provided to the Designated Transmission Owner(s) shall
include, but not be limited to: (1) the specifications of the project required by the
Transmission Provider, (2) a reasonable project schedule, including a project need
date, and (3) the cost recovery method.
[RTWG REVIEW CONCLUDED 8-23-12]
3) Requests for additional cost estimates
a) If the an upgrade is of sufficient size, the Transmission Provider may issue
an
NTC to a DTO in order to request an requesting additional cost estimation
study, with sufficient information such that the resulting cost estimate is
such that the estimated costs are expected to be within +/- 20% of the final
costs of the upgrade. The Transmission Owner DTO would shall be
authorized to expend only those such funds necessary to perform such
Comment [BGF31]: RTWG clean up for consistency of “a NTC” versus” an NTC”
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 35
studyies,. however, shall not be authorized to expend, nor shall be
reimbursed, for any material or construction costs related to the project.
The NTC shall direct the DTO to perform detailed engineering and cost
studies within a stated timeframe defined in the NTC. The DTO shall
provide Transmission Provider an estimate of the engineering and other
costs, such as the costs for engineering to develop the design, perform
siting and routing reviews, perform environmental studies, or to take other
actions required to refine the cost of the transmission project described in
the NTC.
[OTDTF REVIEW CONCLUDED 8-16-12]
b) Upon receipt of the new cost estimate, the NTC will be considered to be
complete. The Transmission Provider shall review the new cost estimate.
If the revised cost estimate changes less than 20% from the original
estimate, the Transmission Provider will issue a new NTC authorizing
construction and setting the estimated cost of the project at the baseline
cost for cost tracking pursuant to Section VI of this Attachment Y.
c) If the new cost estimate is greater than 20% of the original estimated cost,
the Transmission Provider will review if it should proceed with the
constructing the project.
(i) The Transmission Provider will present the change in cost and its
recommendation to proceed with the project, cancel the project, or
suggest a new project to the Markets and Operations Policy
Committee.
(ii) The Markets and Operations Policy Committee shall review the
information and present the information and its recommendation to
the SPP Board of Directors.
(iii) The SPP Board of Directors shall determine the action to be taken
regarding the proposed transmission project. If it is determined to
proceed with the project, a new NTC will be issued to the DTO
authorizing it to proceed with construction of the project.
Otherwise the DTO shall be notified that the project has been
cancelled. Any replacement projects shall be studied and the DTO
determined in accordance with Attachment O and Attachment Y of
this Tariff.
4) If the Transmission Provider cancels an NTC for any reason outside the control of
the DTO, the DTO may request compensation for any stranded cost related to the
cancellation of the project. The Transmission Owner seeking to recover any
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 36
stranded cost must present the Transmission Provider with an itemized list of the
costs. The Transmission Provider will review the costs and will file them with the
Commission along with the method of how the costs are to be recovered.
VI. COST TRACKING PROCESS
Costs related to all projects approved for construction under the Tariff shall be tracked by
the Transmission Provider. If the cost significantly exceeds the estimated base line cost,
the project will be reviewed by the Transmission Provider to determine if the project
should continue to be constructed.
1) Upon the acceptance of an NTC by a DTO, the base line cost of the project will
be set. The baseline cost shall be the expected cost of the project(s) as agreed to
between the DTO and the Transmission Provider at the time the NTC was
accepted.
2) The DTO shall submit updates of the estimated costs to the Transmission Provider
on a quarterly basis in a standard format and method defined on the Transmission
Provider’s website.
3) If the estimated costs reported in a quarterly update vary from the baseline cost of
the project, the Transmission Provider shall investigate the reason for the change
in cost and report to the Markets and Operations Policy Committee the reason for
the change in cost and its recommendation on whether to accept the change in
cost and reset the baseline cost. The recommendation can be (1) to continue to
monitor the cost of the project, (2) reset the baseline cost of the project, or (3)
change the scope of the project, or (4) cancel the project. The MOPC shall review
the information and present to the SPP Board of Directors its conclusion and
recommendation, along with the Transmission Provider’s report. The SPP Board
of Directors shall make the final determination as to the action that will be taken.
VII. DEFAULT AND REEVALUATION
1) Any Transmission Owner which has accepted an NTC in accordance with this
Tariff shall do all within its power, and in accordance with the SPP Membership
Agreement to meet the terms contained in the NTC. If the Transmission Owner
cannot meet any of the terms agreed to in the NTC it must notify the
Transmission Provider immediately. The Transmission Owner may suggest
changes to the NTC and present the reasons why the changes should be approved.
The Transmission Provider will review the proposed changes. The Transmission
Provider may decide to: (1) accept the proposed changes; (2) start a negotiation
with the Transmission Owner to come to mutually acceptable terms; (3) reject the
DRAFT 08/17/2012
FOR OTDTF DISCUSSION
08/22 – 08/23/2012
Page 37
proposed changes and maintain the conditions contained in the NTC.
2) If the Transmission Owner and the Transmission Provider cannot come mutually
acceptable terms, the Transmission Owner will be considered in default of the
NTC. Changes in cost of the transmission facility will not be considered a reason
for default and will be tracked in accordance with Section VI of this Attachment
Y. The Transmission Provider shall reevaluate the project to determine if it is still
required. If it is determined that the transmission facility is still required, the
Transmission Provider may withdraw the NTC and select another Transmission
Owner to construct the transmission facility.
3) If an NTC is cancelled due to a default by the Transmission Owner, the
Transmission Owner is not eligible to recover any costs it may have made related
to the NTC under Section V.4 of this Attachment Y.
[Question that needs answered: If the NTC relates to an upgrade of an existing facility,
what happens?]
