Southwest Power Pool REGIONAL TARIFF WORKING GROUP
8th Floor Conference Room Renaissance Tower (AEP Offices) – Dallas, TX
March 20, 2013 – 1:00 P.M. – 5:00 P.M. March 21, 2013 – 8:30 A.M. – 2:00 P.M.
March 20, 2013 -MINUTES-
Agenda Item 1 – Call to Order, Introductions and Receipt of Proxies Chair Dennis Reed, Westar, called the meeting to order at 1:03 P.M. on March 20, 2013, and asked for a round of introductions. There were 34 persons in attendance either in person or via phone. (Attachment 1 – Attendance March 20, 2013). No proxies were reported. Agenda Item 2 – Review of Agenda and Additional Agenda Items Chair Reed asked if there were any changes or additions to be made to the agenda. Chair Reed requested we begin the meeting with Agenda Item 4 – TRR 085 – Determination of Credits and Distribution of Credit Revenue. Agenda Item 4 – TRR 085 – Determination of Credits and Distribution of Credit Revenue David Kays, OG&E, began the overview in Attachment H – Annual Transmission Revenue Requirement for Network Integration Transmission Service. Charles Locke, KCPL, noted Columns 6 and 7 of Attachment H, Table 1 should be reversed. The changes made to make Column 6 reflect ATRRs Reallocated to Balanced Portfolio Region-wide ATRR and Column 7 reflect Base Plan Zonal ATRR to pay Upgrade Sponsors. It was agreed to incorporate tariff language to Attachment L from TRR 080 – Attachment L Modifications for Balanced Portfolios that was approved by the Board in January, 2013. Staff noted the tariff language in TRR 080 is scheduled to be filed with FERC in the near future. The language will be added to TRR 085 as italicized language (pending language) for the RTWG review on March 21, 2013. The group’s review concluded in Attachment L, Section II – Distribution of Transmission Service Revenues Associated with the Zonal Annual Transmission Revenue Requirement.
Adjournment – Day 1 Chair Reed adjourned the meeting at 5:41 P.M. on March 20, 2013, to reconvene at 8:30 A.M. on March 21, 2013.
Regional Tariff Working Group
March 20 – 21, 2013
March 21, 2013
-MINUTES-
Agenda Item 6– Call to Order, Introductions and Receipt of Proxies Chair Dennis Reed (Westar) called the meeting to order at 8:31 A.M. on March 21, 2013, and asked for a round of introductions. There were 31 persons in attendance either in person or via phone (Attachment 6 – Attendance – March 21, 2013). No proxies were reported. Agenda Item 7 – Review of Agenda and Additional Agenda Items Chair Dennis Reed (Westar) asked if there were any changes or additions to be made to the agenda. There were no changes or additions to the agenda. Agenda Item 9 – TRR 089 – Order 1000 Seams Tariff Revisions Matt Harward, SPP, led the discussion on TRR 089 – Order 1000 Seams Tariff Revisions beginning with Attachment H. It was noted TRR 085 tariff revisions in Attachment H and Attachment L will need to be incorporated into TRR 089. A new line in Table 2 of Attachment H was added for Other Interregional Planning Region ATRR. New language was added in Attachment L, Section III identifying the process of the distribution of the revenues associated with approved Interregional Projects collected by the Transmission Provider under Schedule 11. Revenues associated with approved Interregional Projects received by the Transmission Provider from an Interregional Planning Region will be distributed to the owning Transmission Owner(s) in proportion to their respective annual transmission revenue requirements for the approved Interregional Project. Additional edits were made in Attachment O, Section I. It was noted Interregional Projects should be added to the flow chart in Figure 1 – SPP Transmission Planning. The group’s review concluded with Addendum 3 to Attachment O – Midwest Independent Transmission System Operator, Inc. Agenda Item 8 - TRR 085 – Determination of Credits and Distribution of Credit Revenue – Review of Attachment L Charles Locke, KCP&L, incorporated the language in the approved TRR 080 (Attachment L, Section III) into TRR 085. He divided the language in Attachment III into three separate sub-sections – A. Distribution of Revenues Based on Annual Transmission Revenue Requirements; B. Distribution of Revenues for Creditable Upgrades Included in Schedule 11 Rates, and C. Distribution of Revenues for Creditable Upgrades Included in Schedule 11 Rates.
Regional Tariff Working Group
March 20 – 21, 2013
Agenda Item No. 11 Future Meetings
March 27 – 28, 2013 – Dallas, TX (1:00 P.M. – 5:00 P.M.) (8:30 A.M. – 2:00 P.M.)
April 25, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)
May 22 - 23, 2013 – Dallas, TX (1:00 P.M. – 5:00 P.M.) (8:30 A.M. – 2:00 P.M.)
June 26 - 27, 2013 – Dallas, TX (1:00 P.M. – 5:00 P.M.) (8:30 A.M. – 2:00 P.M.)
July 25, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)
August 22, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)
September 26, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)
October 24, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)
November 21, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)
Adjournment – Day 2 Chair Dennis Reed adjourned the meeting at 2:19 P.M. on March 21, 2013.
Respectively Submitted, Brenda Fricano Staff Secretary
Regional Tariff Working Group Meeting
Date March 20, 2013
Last Name First
Name Company Email
Attend
Members
Andrysik Richard LES [email protected] Phone
Cecil Walt MoPSC [email protected] X
Dowling Bill Midwest Energy, Inc. [email protected]
Haner Luke Omaha Public Power District [email protected] Phone
Hestermann
Tom Sunflower Electric Power Corp. [email protected] X
Janssen Rob Dogwood Energy [email protected] Phone
Kays David Oklahoma Gas & Electric [email protected] X
Kolb Lloyd Golden Spread Electric
Cooperative [email protected] X
Littleton Tom OMPA [email protected] X
Liu Bernard Xcel Energy [email protected] X
Locke Charles Kansas City Power & Light
Company [email protected] X
Malone Paul NPPD [email protected] Phone
Pennybaker
Robert American Electric Power [email protected] Phone
Reed Dennis Westar Energy [email protected]
m X
Rowland Neil Kansas Municipal Energy Agency
Shields Robert Arkansas Electric Cooperative
Corporation [email protected] X
Tynes Keith ETEC [email protected] Phone
Varnell John Tenaska Power
Services [email protected] X
Warren Bary Empire District [email protected] Phone
Williams Mitchell Western Farmers Electric
Cooperative [email protected] Phone
Wagner Nicole Southwest Power Pool [email protected] Phone
Fricano Brenda Southwest Power Pool [email protected] X
Last Name First
Name Company Email
Anderson Gene OMPA
Anthony Gay Southwest Power Pool [email protected]
Binette Matt Wright & Talisman [email protected] Phone
Bumgarner Carrie Wright & Talisman [email protected]
Busbee Alfred Southwest Power Pool [email protected] Phone
Camp Wayne Accenture [email protected]
Cates Charles Southwest Power Pool [email protected]
Last Name First
Name Company Email
Choate Marisa Southwest Power Pool [email protected]
Fox Kip AEP [email protected]
Gallup Terri AEP [email protected]
Gaw Steve Wind Coalition [email protected] Phone
Gay Ryan Southwest Power Pool [email protected]
Giessmann Dena Southwest Power Pool [email protected]
Greenwalt Jared Southwest Power Pool [email protected]
Hamilton Sherry Southwest Power Pool [email protected]
Harward Matt Southwest Power Pool [email protected] X
Hayes Alison Southwest Power Pool [email protected]
Kelly Patti Southwest Power Pool [email protected]
Kentner Tessie Southwest Power Pool [email protected]
Lucas Antoine Southwest Power Pool [email protected]
Miller Brittney Arkansas PSC [email protected] Phone
Mitchell Ty Southwest Power Pool [email protected]
Moffet Michael Sunflower Electric Power Coop [email protected]
Mooney Catherin
e Southwest Power Pool [email protected]
Mosier Pat APSC [email protected]
Onnen Katy KCPL [email protected] Phone
Polk Susan Southwest Power Pool [email protected]
Purdy Steve Southwest Power Pool [email protected]
Reed Wendy Wright and Talisman [email protected]
Roach Temujin SPP [email protected]
Shumate Walt Shumate & Associates [email protected]
Simpson Carrie Southwest Power Pool [email protected]
Sundman Roy Training and Support Services, Inc. [email protected]
Thomas Mena PUC Texas State
Claborn Shawnee PUC Texas State Phone
Cade Bruce Xcel
DeBaun Tom KCC Phone
McKinnie Adam
Nickell Lanny SPP
Hocker Jeff SWPA
Dobson Alex OMPA
Hooten Brett SPP Phone
Safuto Robert Customized Energy Solutions Phone
Sidman Kara [email protected] Phone
Sunderman Derek [email protected]
m Phone
Samson Eric SPP Phone
Tariff Revision Request (TRR)
Page 1 of 53
TRR Number
085 TRR Title
Determination of Credits and Distribution of Credit Revenue - Tariff Attachment Z2 Implementation
Cross Reference #
PRR BRR Other (Specify) _ _____________
Sponsor
Name David Kays
E-mail Address Kays, David <[email protected]>
Company OG&E
Phone Number (405)553-3538
Date 12/31/2012
Tariff Section(s) Requiring Revision
Section No.
Part I.
1 Definitions
Definition C - Add new term “Creditable Upgrade”
Definition D – Revise “Directly Assigned Upgrade Costs” definition
Definition U – Add new term “Upgrade Sponsor”
Part IV Attachment H – reflect Base Plan Zonal ATRR to pay upgrade
sponsors
Part iV. Attachment J, Sec III, B.1.d.ii and B.1.f - add / revise language
about allocating DAUC
Part IV Attachment Z1, Section V
a. Insert letters a & b in front of original paragraphs (format change)
b. Change reference in new sub-part b to Section V
c. Add new sub-part c which defines the process for allocating
DAUC to Network Upgrades & requests
Part IV. Attachment Z2
Section I - Add new language re: Creditable Upgrades
Section II – bifurcate Section I into two sections; Section II to
address Revenue Crediting
Section III – Revise language in previous Section II to address
Inclusion of Creditable Upgrades into Rates
Requested Resolution Normal Urgent (provided justification below for urgent
request)
Tariff Revision Request (TRR)
Page 2 of 53
Revision Description
1) to set out the CPTF’s understanding of the provisions contained in Tariff Attachment Z2 Revenue Crediting for Upgrades, 2) to outline a recommended process to be used by SPP Staff to implement the crediting provisions of the Tariff, 3) to provide recommendations for specific modifications to the Tariff that the task force believes might be necessary in order to clarify the crediting process
Reason for Revision Clarify requirements of existing tariff provisions regarding implementation of Attachment Z2, Crediting
Stakeholder Approval Required (specify date and record outcome of vote; n/a for those stakeholders not required)
MWG BPWG (n/a) TWG (n/a) ORWG (n/a) Other (specify) (n/a) RTWG MOPC Board of Directors
Legal Review Completed
Yes (Include any comments resulting from the review)
No
Market Protocol Implications or Changes
Yes (Include a summary of impact and/or specific changes & PRR #)
No
Business Practice Implications or Changes
Yes (Include a summary of impact and/or specific changes & BPR #) TBD
No
Tariff Revision Request (TRR)
Page 3 of 53
Criteria Implications or Changes
Yes (Include a summary of impact and/or specific changes)
No
Other Corporate Documents Implications (i.e., SPP
By-Laws, Membership Agreement, etc.)
Yes (Include which corporate documents)
No
Credit Implications
Yes (Include a summary of impact and/or specific changes)
No
Impact Analysis Required
Yes
No
Tariff Revision Request (TRR)
Page 4 of 53
Proposed Tariff Language Revisions (Redlined)
C - Definitions
Calendar Day: Any day including Saturday and Sunday.
Commission: The Federal Energy Regulatory Commission.
Completed Application: An Application that satisfies all of the information and other requirements
of the Tariff, including a Credit Application and any required Financial Security.
Control Area: An electric power system or combination of electric power systems to which a
common automatic generation control scheme is applied in order to:
(1) match, at all times, the power output of the generators within the electric power system(s) and
capacity and energy purchased from entities outside the electric power system(s), with the load
within the electric power system(s);
(2) maintain scheduled interchange with other Control Areas, within the limits of Good Utility
Practice;
(3) maintain the frequency of the electric power system(s) within reasonable limits in accordance
with Good Utility Practice; and
(4) provide sufficient generating capacity to maintain operating reserves in accordance with Good
Utility Practice.
Credit Policy: The Credit Policy set forth in Attachment X to the Tariff.
Creditable Upgrade: Any Network Upgrade which meets the requirements of Section I of Attachment
Z2.
Curtailment: A reduction in firm or non-firm transmission service in response to a transmission
Tariff Revision Request (TRR)
Page 5 of 53
capacity shortage as a result of system reliability conditions.
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.
Directly Assigned Upgrade Costs: An Eligible Customer’s share of the cost of a Service Upgrade or
Network Upgrade, or a Project Sponsor’s share of the cost of a Sponsored Upgrade, determined in
accordance with Attachments J, V and Z1, which includesincluding: (i) any Network Upgrade costs
that are: (i) 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 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; or (iv) directly assigned to a Generation
Interconnection Customer resulting from a request for generation interconnection.
Tariff Revision Request (TRR)
Page 6 of 53
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.
U - Definitions
Users: Transmission Customers or other entities that are parties to transactions under the Tariff.
Upgrade Sponsor: A Transmission Customer, Network Customer, Generation Interconnection
Customer, or Project Sponsor paying Directly Assigned Upgrade Costs for a Creditable Upgrade.
ATTACHMENT H
ANNUAL TRANSMISSION REVENUE REQUIREMENT FOR NETWORK INTEGRATION
TRANSMISSION SERVICE
SECTION I: General Requirements
1. The Zonal Annual Transmission Revenue Requirement (“Zonal ATRR”) for each Transmission
Owner for purposes of determining the charges under Schedule 9, Network Integration Transmission
Service, is specified in Column (3) Section I, of Table 1. The Base Plan Zonal Annual Transmission
Revenue Requirement (“Base Plan Zonal ATRR”) used to determine the zonal charges under
Schedule 11 for Base Plan Upgrades issued a Notification to Construct (“NTC”) prior to June 19,
2010 is specified in Column (4) Section I, of Table 1. The Base Plan Zonal ATRR used to determine
the zonal charges under Schedule 11 for Base Plan Upgrades issued an NTC on or after June 19, 2010
is specified in Column (5) of Section I, Table 1. The amount of Zonal ATRR and Base Plan Zonal
ATRR that is included in Columns (3), (4), and (5), and (7) and reallocated to the Region-wide
Annual Transmission Revenue Requirement (“Region-wide ATRR”), in accordance with Attachment
J, is specified in Column (6) of Section I, Table 1. The Base Plan Zonal ATRR to pay Upgrade
Tariff Revision Request (TRR)
Page 7 of 53
Sponsors in accordance with Attachment Z2 is specified in Column (7) of Section I, Table 1.
Table 1
(See Note A below)
(1)
Zone
(2) (3)
Zonal ATRR
(4)
Base
Plan
Zonal
ATRR
(5)
Base Plan
Zonal
ATRR after
June 19,
2010
(6)
ATRR
Reallocated
to Balanced
Portfolio
Region-
wide ATRR
(67)
R
Base Plan
Zonal ATRR
to pay Upgrade
Sponsors [LC1]
1 American Electric Power –West
(Total)
See Att. H tab,
posted RRR File See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
[BGF2]
1a
American Electric Power (Public
Service Company of Oklahoma
and Southwestern Electric Power
Company) See Section II.3
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
1b East Texas Electric Cooperative,
Inc. $2,733,879
1c Tex-La Electric Cooperative of
Texas, Inc. $588,874
1d Deep East Texas Electric
Cooperative, Inc. $428,131
1e Oklahoma Municipal Power
Authority $748,647
1f
AEP West Transmission
Companies (AEP Oklahoma
Transmission Company, Inc and
AEP Southwestern Transmission
Company, Inc)
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
2 Reserved for Future Use
3 City Utilities of Springfield,
Missouri $8,651,509
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
4 Empire District Electric
Company $14,075,000
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
5 Grand River Dam Authority See Att. H tab,
posted RRR File See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
Tariff Revision Request (TRR)
Page 8 of 53
6 Kansas City Power & Light
Company
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
7 Oklahoma Gas and Electric
(Total)
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
7a Oklahoma Gas and Electric
See Att. H tab,
posted RRR File See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
7b Oklahoma Municipal Power
Authority $368,501
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
8 Midwest Energy, Inc. See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
9 KCP&L Greater Missouri
Operations Company
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
10 Southwestern Power
Administration $14,267,100
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
11 Southwestern Public Service
Company (Total)
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
11a Southwestern Public Service Company See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
11b Tri-County Electric Cooperative See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
12 Sunflower Electric Power
Corporation $14,484,045
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
13 Western Farmers Electric
Cooperative $20,719,639 See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
14 Westar Energy, Inc. (Kansas
Gas & Electric and Westar
Energy) (Total)
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
14a Westar Energy, Inc. (Kansas Gas
& Electric and Westar Energy) See Att. H tab,
posted RRR File
See Att. H
tab, posted
See Att. H
tab, posted
See Att. H tab,
posted RRR
See Att. H tab,
posted RRR File
Tariff Revision Request (TRR)
Page 9 of 53
RRR File RRR File File
14b Prairie Wind Transmission, LLC. See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
14c Kansas Power Pool See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
15 Mid-Kansas Electric Company
(Total)
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
15a Mid-Kansas Electric Company $15,142,441
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
15b ITC Great Plains
See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
15c Prairie Wind Transmission, LLC. See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
16 Lincoln Electric System See Att. H tab,
posted RRR File See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
17 Nebraska Public Power District See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
18 Omaha Public Power District See Att. H tab,
posted RRR File
See Att. H
tab, posted
RRR File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
See Att. H tab,
posted RRR File
19 Total
See Att. H tab,
posted RRR File
Note A: The Annual Transmission Revenue Requirements (“ATRR”) for each Zone are set forth
in the Revenue Requirements and Rates File (“RRR File”) posted on the SPP website.
2. For the purposes of determining the Region-wide Charges under Schedule 11, the Region-wide
ATRR, as shown in Line 56 of Section I, Table 2, shall be the sum of (i) the Base Plan Region-wide
Annual Transmission Revenue Requirements (“Base Plan Region-wide ATRR”)(reflected in Line 1
and Line 2), and (ii) the total Balanced Portfolio Region-wide Annual Transmission Revenue
Tariff Revision Request (TRR)
Page 10 of 53
Requirements (“Balanced Portfolio Region-wide ATRR”)(reflected in Line 3 and Line 4) and (iii)
anythe Base Plan Region-wide ATRRamount required to to be paidpay to y an Upgrade Sponsors
(reflected in Line 5) to include a Creditable Upgrade in the Schedule 11 Region-wide charges
determined in accordance with Attachment Z2 of this Tariff.
Table 2
(See Note B below)
1 Base Plan Region-wide ATRR (NTC prior to June 19, 2010) See Att. H tab, posted
RRR File
2 Base Plan Region-wide ATRR (NTC on or after June 19, 2010) See Att. H tab, posted
RRR File
3 Total ATRR reallocated to Balanced Portfolio Region-wide ATRR
Total,from Column (6), Section I, Table 1
See Att. H tab, posted
RRR File
4 Balanced Portfolio Region-wide ATRR See Att. H tab, posted
RRR File
5 Amount usedBase Plan Region-wide ATRR to pay Upgrade
Sponsors
See Att. H tab, posted
RRR File
56 Region-wide ATRR (Line 1 + Line 2 + Line 3 + Line 4 + Line 5) See Att. H tab, posted
RRR File
Note B: The Region-wide ATRRs are set forth in the RRR File posted on the SPP website.
3. A Transmission Owner’s revenue requirement referenced or stated in this Attachment H shall not be
changed absent a filing with the Commission, accompanied by all necessary cost support, unless such
Transmission Owner utilizes Commission-approved formula rate processes contained in this Tariff to
determine its revenue requirements.
4. A new or amended revenue requirement referenced or stated in this Attachment H shall not be filed
with the Commission by the Transmission Provider unless such revenue requirements have been
provided by or for a Transmission Owner. Such revenue requirements shall have been accepted or
approved by the applicable regulatory or governing authority except in the event of a simultaneous
filing with the Commission by the Transmission Owner and Transmission Provider.
Tariff Revision Request (TRR)
Page 11 of 53
5. If a Transmission Owner has a Commission-approved formula rate, the successful completion of its
approved annual formula rate update procedures shall constitute regulatory acceptance sufficient to
authorize the Transmission Provider to update that Transmission Owner’s revenue requirements
posted on the SPP website. Such update by the Transmission Provider shall not require a filing with
the Commission, provided that the Transmission Owner posts the populated formula rate for public
review and comment as required under the applicable protocols and/or procedures contained in this
Attachment H. The Transmission Provider shall follow any special procedures related to updating a
Transmission Owner’s revenue requirements as outlined in Section II of this Attachment.
6. The Transmission Provider shall allocate the accepted or approved revenue requirement associated
with a Base Plan Upgrade, in accordance with Attachment J to this Tariff, to the Base Plan Region-wide
ATRRs in Section I, Table 2 above and to the appropriate Base Plan Zonal ATRR in Column (4) or (5) in
Section I, Table 1.
Attachment J
III. Base Plan Upgrades
A single Base Plan Upgrade is comprised of any upgrade or group of upgrades required to be made to
a single transmission circuit, where a transmission circuit is comprised of all load carrying elements between
circuit breakers or the comparable switching devices. A load carrying element within a Base Plan Upgrade
that is connected at two different voltage levels (e.g. a 345kV/138kV transformer) shall, for the purposes of
this Attachment J, be considered to have a nominal operating voltage of its lower voltage level (excluding any
tertiary windings) and its costs shall be allocated in accordance with the rules governing the lower voltage
level in this Attachment J. A waiver may be requested to use a transformer’s higher voltage level instead of
the lower voltage level for the purposes of cost allocation under this Attachment J based on the anticipated
utilization of the transformer. Such request must be made in writing with supporting analysis and submitted
to the Transmission Provider not later than one hundred eighty (180) days following the inclusion of the
transformer in an approved SPP Transmission Expansion Plan. Any waiver request submitted shall be
evaluated based upon the following general factors, including but not limited to: (i) whether the power flows
through the transformer predominately are from the lower voltage to the higher voltage; (ii) whether the
transformer is not necessary for the support of, or does not substantially benefit, the lower voltage system in
the host zone to which it is connected. The Transmission Provider shall make a recommendation to accept or
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deny the waiver, on a non-discriminatory basis, to the Markets and Operations Policy Committee. The
Markets and Operations Policy Committee will consider the waiver request and the Transmission Provider’s
recommendation, and will provide its own recommendation (along with the Transmission Provider’s
recommendation) regarding such waiver to the SPP Board of Directors. Barring unusual circumstances, the
recommendation to approve or reject such waiver request will be submitted to the SPP Board of Directors
within one hundred twenty (120) days following the receipt of the waiver request.
A. Allocation of Base Plan Upgrade Costs Eligible for Cost Allocation
1. If the cost of a Base Plan Upgrade is less than or equal to $100,000, the annual
transmission revenue requirement associated with such Base Plan Upgrade shall be
allocated to the Base Plan Zonal Annual Transmission Revenue Requirement of the
Zone in which the Base Plan Upgrade is located.
2. If a) the Base Plan Upgrade is included in and constructed pursuant to the SPP
Transmission Expansion Plan in order to ensure the reliability of the Transmission
System or is an approved high priority upgrade, and the cost for that upgrade is not
allocable under Section III.A.1; or b) the Base Plan Upgrade cost eligible for cost
allocation under Section III.B.1 is not associated with a new or changed Designated
Resource for a wind generation plant, then:
i. X% of the annual transmission revenue requirement associated with such Base
Plan Upgrade costs eligible for cost allocation shall be allocated to the Base
Plan Region-wide Annual Transmission Revenue Requirement and recovered
through the Region-wide Charge, where X shall be set as follows:
a. For all Base Plan Upgrades issued a Notification to Construct prior to
June 19, 2010 or whose nominal operating voltage level is less than 300
kV but greater than 100 kV, X shall be 33%.
b. For all other Base Plan Upgrades whose nominal operating voltage level
is greater than or equal to 300 kV, X shall be 100%.
c. For all other Base Plan Upgrades whose nominal operating voltage level
is less than or equal to 100 kV, X shall be 0%.
ii. (100-X)% of the annual transmission revenue requirement associated with such
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Base Plan Upgrade costs eligible for cost allocation shall be allocated to the
Base Plan Zonal Annual Transmission Revenue Requirement and recovered
through the Base Plan Zonal Charge as follows:
a. For Base Plan Upgrades issued a Notification to Construct prior to June
19, 2010, this portion of the annual transmission revenue requirement
for Base Plan Upgrade costs eligible for cost allocation shall be
allocated to the Base Plan Zonal Annual Transmission Revenue
Requirement of specific Zones based on the Zones’ share of the
incremental positive MW-mile benefits as computed in Section 4 of
Attachment S to this Tariff. Each Zone with a benefit of at least 10
MW-miles from a given Base Plan Upgrade shall be allocated a portion
of the Base Plan Zonal Annual Transmission Revenue Requirement for
such upgrade based on its incremental positive MW-mile benefit
divided by the sum of the incremental positive MW-mile benefits for all
of those Zones with a benefit of at least 10 MW-miles from the upgrade,
provided that such allocation represents an engineering and construction
cost of at least $100,000.
b. For all other Base Plan Upgrades, this portion of the annual
transmission revenue requirement for Base Plan Upgrade costs eligible
for cost allocation shall be allocated solely to the Base Plan Zonal
Annual Transmission Revenue Requirement of the Zone in which the
Base Plan Upgrade is located.
3. If the Base Plan Upgrade cost eligible for cost allocation under Section III.B.1 of
Attachment J is a) associated with a new or changed Designated Resource that is a
wind generation plant and b) the Base Plan Upgrade is located within the same zone as
the Transmission Customer’s Point of Delivery, then:
i. X% of the annual transmission revenue requirement associated with the portion
of the Base Plan Upgrade costs eligible for cost allocation shall be allocated to
the Base Plan Region-wide Annual Transmission Revenue Requirement and
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recovered through the Base Plan Region-wide Charge, where X shall be set as
follows:
a. For Base Plan Upgrades issued a Notification to Construct prior to June
19, 2010 or whose nominal operating voltage level is less than 300 kV
and greater than 100 kV, X shall be 33%.
b. For all other Base Plan Upgrades whose nominal operating voltage level
is greater than or equal to 300 kV, X shall be 100%.
c. For all other Base Plan Upgrades whose nominal operating voltage level
is less than or equal to 100 kV, X shall be 0%.
ii. (100-X)% of the annual transmission revenue requirement associated with the
portion of the Base Plan Upgrade costs eligible for cost allocation shall be
allocated to the Base Plan Zonal Annual Transmission Revenue Requirement
and recovered through the Base Plan Zonal Charge as follows:
a. For Base Plan Upgrades issued a Notification to Construct prior to June
19, 2010, this portion of the annual transmission revenue requirement
for Base Plan Upgrade costs eligible for cost allocation shall be
allocated to the Base Plan Zonal Annual Transmission Revenue
Requirement of specific Zones based on the Zones’ share of the
incremental positive MW-mile benefits as computed in Section 4 of
Attachment S to this Tariff. Each Zone with a benefit of at least 10
MW-miles from a given Base Plan Upgrade shall be allocated a portion
of the Base Plan Zonal Annual Transmission Revenue Requirement for
such upgrade based on its incremental positive MW-mile benefit
divided by the sum of the incremental positive MW-mile benefits for all
of those Zones with a benefit of at least 10 MW-miles from the upgrade,
provided that such allocation represents an engineering and construction
cost of at least $100,000.
b. For all other Base Plan Upgrades, this portion of the annual
transmission revenue requirement for Base Plan Upgrade costs eligible
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for cost allocation shall be allocated to the Base Plan Zonal Annual
Transmission Revenue Requirement of the Zone in which the Base Plan
Upgrade is located.
4. If the Base Plan Upgrade cost eligible for cost allocation under Section III.B.1 of
Attachment J is a) associated with a new or changed Designated Resource that is a
wind generation plant and b) the Base Plan Upgrade is located within a zone(s) other
than the Transmission Customer’s Point of Delivery, then:
i. Y% of the annual transmission revenue requirement associated with the Base
Plan Upgrade costs eligible for cost allocation shall be allocated to the Base
Plan Region-wide Annual Transmission Revenue Requirement and recovered
through the Base Plan Region-wide Charge, where Y shall be set as follows:
a. For Base Plan Upgrades issued a Notification to Construct prior to June
19, 2010 or whose nominal operating voltage level is less than 300 kV,
Y shall be 67%.
b. For all other Base Plan Upgrades Y shall be 100%.
ii. (100-Y)% of the annual transmission revenue requirement associated with the
Base Plan Upgrade costs eligible for cost allocation shall be directly assigned
to the Transmission Customer.
B. Conditions for Classifying Service Upgrade Costs Associated with Designated Resources
As Base Plan Upgrade Costs Eligible for Cost Allocation
1. Except as provided in Section III.A.1 and subject to the limits and rules set forth in
Subsections d and f below, the costs of Service Upgrades associated with new or
changed Designated Resources shall be classified as Base Plan Upgrade costs eligible
for cost allocation if the conditions in the following Subsections a and b are met, and if
the condition in Subsection c is met as applicable.
a. The Transmission Customer’s commitment to the Designated Resource has a
duration of at least five years
b. In the first year the Designated Resource is planned to be used by the
Transmission Customer, the accredited capacity of the Transmission
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Customer’s existing Designated Resources plus the lesser of: (a) the planned
maximum net dependable capacity applicable to the Transmission Customer or
(b) the requested capacity; shall not exceed 125% of the Transmission
Customer’s projected system peak responsibility determined pursuant to SPP
Criteria 2.
c. If the Designated Resource is a wind generation plant, then the sum of: (1) the
requested capacity and (2) the transmission capacity reserved for the
Transmission Customer’s existing Designated Resources that are wind
generation plants shall not exceed 20% of the Transmission Customer’s
projected system peak responsibility as determined pursuant to SPP Criteria 2
in the first year the Designated Resource is planned to be used by the
Transmission Customer.
d. Safe Harbor Cost Limit for Eligibility of the Costs of Base Plan Upgrade for
Cost Allocation
i. For Base Plan Upgrades that cost over $100,000, the aggregate cost of
such upgrades assigned to each individual transmission service request
that is less than or equal to the Safe Harbor Cost Limit of $180,000 /
MW times the requested capacity is eligible for cost allocation in
accordance with:
1) Section III.A.2 for a new or changed Designated Resource other
than a wind generation plant; or
2) Sections III.A.3 and 4 for a new or changed Designated
Resource that is a wind generation plant.
ii. Unless a waiver of the Safe Harbor Cost Limit is granted pursuant to
Section III.C, ii. Aany costs that exceed the Safe Harbor Cost
Limit for a transmission service request shall be directly assigned to the
Transmission Customer and allocated among the upgrades affected by
the transmission service request in accordance with Section V.c of
Attachment Z1 of this Tariffunless a waiver of the Safe Harbor Cost
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Limit is granted pursuant to Section III.C.
e. Base Plan Upgrade costs eligible for allocation as a result of the granting of a
waiver shall be allocated in accordance with Sections III.A.2, III.A.3, or III.A.4,
as applicable.
f. For each Ttransmission Sservice Rrequest, the amount of Base Plan Upgrade
costs eligible for cost allocation shall be allocatedpro-rated among all Base Plan
Upgrades required to grant the Ttransmission Sservice Rrequest based upon the
remaining cost after subsequent based upon each Upgrade’s cost that is
allocated to the allocation of any Directly Assigned Upgrade
CostsTransmission Service Request in accordance with Section III.B.1d(ii) of
this Attachment JZ1.
2. The Transmission Customer must provide the Transmission Provider the information
that the Transmission Provider deems necessary to verify that the new or changed
Designated Resource meets conditions in Section III.B.1.a,b and c above.
3. If an upgrade for a new or changed Designated Resource meets the requirements set
forth in Section III.B.1.a, b, and c above, the costs up to the $180,000/MW Safe Harbor
Cost Limit will be classified as Base Plan Upgrade costs eligible for cost allocation.
4. If the conditions set forth in Section III.B.1.a, b, and c above are not met, and the
Transmission Customer does not secure a waiver of the relevant condition(s), the costs
of the upgrades will be directly assigned to the Transmission Customer. If the costs of
upgrades associated with a new or changed Designated Resource exceeds the Safe
Harbor Cost Limit and the Transmission Customer does not secure a waiver of that
limit, the costs of the upgrades in excess of the limit will be directly assigned to the
Transmission Customer. The Transmission Customer shall receive transmission
revenue credits in accordance with Attachment Z2 to this Tariff for any such directly
assigned costs.
C. Waiver of Conditions for Classifying Service Upgrade Costs Associated with Designated
Resources As Base Plan Upgrade Costs Eligible for Cost Allocation
1. Waiver Process
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If one or more of the conditions in Section III.B.1.a, b, c are not met or if the Base Plan
Upgrade cost exceeds the Safe Harbor Cost Limit, the Transmission Customer may seek a
waiver from the Transmission Provider in order that the costs of any Service Upgrade(s) that
otherwise would be directly assigned to the Transmission Customer may be classified in whole
or in part as Base Plan Upgrade costs eligible for cost allocation.
To obtain a waiver for the conditions set forth in Section III.B.1.a, b, c, the
Transmission Customer must submit a request for a waiver to the Transmission Provider
simultaneous with its request for long-term transmission service, submitted in accordance with
Attachment Z1 to this Tariff, for the new or changed Designated Resource.
Aggregate Facilities Studies performed by the Transmission Provider as part of the
Aggregate Transmission Service Study procedure, which is described in Attachment Z1, will
determine whether the costs for Service Upgrades associated with a new or changed
Designated Resource might exceed the Safe Harbor Cost Limit. If the Transmission Provider
determines that the costs for Service Upgrades associated with a new or changed Designated
Resource might exceed the Safe Harbor Cost Limit, the Transmission Provider shall notify the
affected Transmission Customer when the Transmission Provider posts the associated
Facilities Study. The affected Transmission Customer may request a waiver regarding the
costs in excess of the Safe Harbor Cost Limit within 15 days of such notice form the
Transmission Provider.
Following the receipt of a request for a waiver, the Transmission Provider will review
the request and make a determination on a non-discriminatory basis of whether a waiver
should be granted based upon consideration of the factors described in Section III.C.2. of this
Attachment. The Transmission Customer requesting the waiver shall be responsible for the
reasonable costs of any studies that the Transmission Provider performs in making its
determination. The Transmission Provider will provide a report and recommendation to the
Markets and Operations Policy Committee for each requested waiver. The Markets and
Operations Policy Committee will consider the waiver request and the Transmission
Provider’s report and recommendation, and will provide its own recommendation (along with
the Transmission Provider’s report and recommendation) regarding each requested waiver to
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the SPP Board of Directors. Barring unusual circumstances, a valid waiver request will be
reviewed and submitted to the SPP Board of Directors within 120 days following the receipt of
the waiver request.
2. Factors to be Considered in Evaluating Waiver Requests
Any waiver request submitted by a Transmission Customer pursuant to Section III.C.1.
of this Attachment shall be evaluated based upon the following general factors, including but
not limited to:
i. There are insufficient competitive resource alternatives for one or more Transmission
Customers.
ii. In the event that the aggregate costs of a Service Upgrade associated with a new or
changed Designated Resource exceed the Safe Harbor Cost Limit, (i) those costs up to
the level of the Safe Harbor Cost Limit shall be classified as Base Plan Upgrade costs
eligible for cost allocation, and (ii) those costs that exceed the Safe Harbor Cost Limit
may be classified in whole or in part as Base Plan Upgrade costs eligible for cost
allocation taking into account the extent to which the duration of the Transmission
Customer’s commitment to the new or changed Designated Resource exceeds the five-
year commitment period set forth in paragraph III.B.1. above.
iii. The five-year commitment period for the new or changed Designated Resource may be
waived if: (i) the associated Service Upgrade costs are significantly less than the Safe
Harbor Cost Limit; or (ii) the associated Service Upgrades provide benefits to other
Transmission Customers that would offset in less than five years any costs allocated to
them as a result of the upgrade being classified as a Base Plan Upgrade.
iv. If a request for a waiver is received by the Transmission Provider based upon other
circumstances, such waiver request shall also be considered pursuant to the waiver
process described in Section III.C.1. of this Attachment.
If the costs of the Service Upgrade(s) required for a new or changed Designated
Resource are not eligible for classification as Base Plan Upgrade costs, the Transmission
Customer may nevertheless request the construction of such upgrades. In such event, the costs
of such upgrades shall be allocated in accordance with Attachment Z1 to this Tariff.
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D. Review of Base Plan Allocation Methodology
1. The Transmission Provider shall review the reasonableness of the regional allocation
methodology and factors (X% and Y%) and the zonal allocation methodology at least
once every three years in accordance with this Section III.D. The Transmission
Provider and/or the Regional State Committee may initiate such review at any time.
Any change in the regional allocation methodology and factors or the zonal allocation
methodology shall be filed with the Commission.
2. For each review conducted in accordance with Section III.D.1, the Transmission
Provider shall determine the cost allocation impacts of the Base Plan Upgrades with
Notifications to Construct issued after June 19, 2010 to each pricing Zone within the
SPP Region. The Transmission Provider in collaboration with the Regional State
Committee shall determine the cost allocation impacts utilizing the analysis specified
in Section III.e of Attachment O and the results produced by the analytical methods
defined pursuant to Section III.D.4(i) of this Attachment J.
3. The Transmission Provider shall review the results of the cost allocation analysis with
SPP’s Regional Tariff Working Group, Markets and Operations Policy Committee, and
the Regional State Committee. The Transmission Provider shall publish the results of
the cost allocation impact analysis and any corresponding presentations on the SPP
website.
4. The Transmission Provider shall request the Regional State Committee provide its
recommendations, if any, to adjust or change the costs allocated under this Attachment
J if the results of the analysis show an imbalanced cost allocation in one or more
Zones.
i) One year prior to each three-year planning cycle (starting in 2013) the Markets
and Operations Policy Committee and Regional State Committee will define
the analytical methods to be used to report under this Section III.D and suggest
adjustments to the Regional State Committee and Board of Directors on any
imbalanced zonal cost allocation in the SPP footprint; and
ii) Starting in 2015 and at any time thereafter, any member company that feels that
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it has an imbalanced cost allocation may request relief through the Markets and
Operations Policy Committee. The Markets and Operations Policy Committee
recommendation, if any, will be forwarded with the request for relief to the
Regional State Committee and Board of Directors for review.
5. In accordance with the SPP Bylaws, the SPP Board of Directors will initiate the
appropriate actions, including any necessary filings with the Commission, consistent
with the Regional State Committee recommendations.
ATTACHMENT L TABLED – 2-27-2013
ATTACHMENT L
TREATMENT OF REVENUES
I. Payments And Distribution Of Revenues
Payment will be made in accordance with Part I, Section 7 of this Tariff to the Transmission Provider
as agent for the Transmission Owners for all services provided under this Tariff except that payments to the
Transmission Provider for use of Energy Imbalance Service will be made in accord with Section 6 of
Attachment AE. The Transmission Provider will distribute the revenues received to the Transmission
Owners, and to the providers of ancillary services, and to customersany Upgrade Sponsor(s) due revenue
credits pursuant to Attachment Z2 of this Tariff in accordance with the provisions of this Attachment L.
II. Distribution Of Transmission Service Revenues Associated With The Zonal Annual
Transmission Revenue Requirement
Transmission service revenues associated with the Zonal Annual Transmission Revenue Requirement
shall be distributed in accordance with the following:
A. Grandfathered Agreements
Except by mutual agreement of the Parties to Grandfathered Agreements, the Transmission Provider
shall have no claim to the revenues collected under such agreements, and shall not collect or allocate any
revenues for transmission service related to such transactions. The Transmission Owner providing the
transmission service under the Grandfathered Agreements, therefore, will continue to receive payment
directly from the customer under the Grandfathered Agreement. Nothing herein is intended to supersede or
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otherwise affect rights that any party to a Grandfathered Agreement may have with respect to termination of
the Grandfathered Agreement. In the event that a Grandfathered Agreement remains in effect between or
among two or more Transmission Owners in a multi-owner Zone other than Zone 1, the associated charges
and revenues will be treated as set forth in Section II.B.2(b) below for purposes of determining the
appropriate distribution of revenues among the Transmission Owners in that Zone.
B. Revenue Distribution – Network Integration Transmission Service
1. Single-Owner Zones
Where there is only one Transmission Owner in a Zone, revenues associated with facilities with a
Zonal Annual Transmission Revenue Requirement shall be distributed as follows:
(a) Except to the extent required under paragraph II.B.1(b) of this Attachment L,
revenues collected by the Transmission Provider under Schedule 9 in connection with the provision of
Network Integration Transmission Service shall be distributed to the Transmission Owner in the Zone where
the Network Load is located.
(b) When a Network Customer has designated Network Load not physically
interconnected with the Transmission System under Section 31.3 of the Tariff, revenues collected by the
Transmission Provider for Network Integration Transmission Service for that portion of the Network
Customer’s Network Load shall be distributed among Transmission Owners on the same basis as the
revenues collected in connection with the provision of Point-To-Point Transmission Service.
2. Multi-Owner Zones
When more than one Transmission Owner within a single Zone has established its owner-specific
zonal annual revenue requirement (“OZRR”), the Transmission Provider shall distribute revenues owed to the
Transmission Owners in the Zone as described below.
(a) Except to the extent required under paragraph II.B.2(e) of this Attachment L,
the Transmission Provider shall distribute revenues it collects under Schedule 9 to each Transmission Owner
in the Zone where the load is located in proportion to its respective share of the Zonal Annual Transmission
Revenue Requirements (“ZRR”) shown in Attachment H for that Zone, as adjusted in accordance with
paragraph II.B.2(b) below. The resulting adjusted OZRRs of the Transmission Owners in the Zone as
calculated in paragraph II.B.2(b) below will be combined to provide the basis for distribution of revenues
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from Schedule 9 charges.
(b) For any year in which a Transmission Owner is a seller of transmission service
to another Transmission Owner within the same Zone under one or more Grandfathered Agreements, the
selling Transmission Owner’s OZRR used to allocate revenue from Schedule 9 charges shall be reduced by
the revenues associated with these Grandfathered Agreements in that year, but only to the extent that such
costs have not already been credited against the selling Transmission Owner’s OZRR. For any year in which
a Transmission Owner is a purchaser of transmission service from a Transmission Owner within the same
Zone under one or more Grandfathered Agreements, the purchasing Transmission Owner’s OZRR shall be
increased by the charges payable under these Grandfathered Agreements in that year, but only to the extent
those charges are not already included in the purchasing Transmission Owner’s OZRR.
(c) For each Transmission Owner in the Zone that has elected not to take Network
Integration Transmission Service for its Native Load Customers or that has elected not to make payments to
the Transmission Provider for its OZRR in taking Network Integration Transmission Service for its Native
Load Customers and/or that provides long term transmission service under Grandfathered Agreements (other
than those addressed in paragraph II.B.2(b) above), the Transmission Provider shall compute hypothetical
NITS payments equal to the cost to serve its Native Load Customers and to serve long-term customers served
under Grandfathered Agreements (other than those addressed in paragraph II.B.2(b) above) as if those
customers were paying for service under Schedule 9.
(d) For each Transmission Owner, the Transmission Provider shall calculate an
amount equal to the sum of hypothetical NITS payments determined in accordance with paragraph II.B.2(c)
above, if any, plus distributed Schedule 9 charges in accordance with paragraph II.B.2(a) above, less its
OZRR as adjusted pursuant to paragraph II.B.2(b) above. If the resulting amount is positive, the
Transmission Owner shall pay the Transmission Provider this amount. If the resulting amount is negative,
the Transmission Provider shall pay the Transmission Owner this amount.
(e) The treatment described in paragraphs II.B.2(b)-(d) above is premised on the
assumption that the annual transmission revenue requirement of the Transmission Owner that is the seller
under a Grandfathered Agreement has not been reduced by the amount of the charges associated with the
Grandfathered Agreement. In such circumstances, the parties to the Grandfathered Agreement will attempt to
reach agreement on a treatment of the Grandfathered Agreement that results in appropriate compensation to
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the Transmission Owners in the Zone while preventing the imposition of excessive costs on others. If the
Transmission Owners in the Zone are unable to reach agreement, either Transmission Owner may invoke the
dispute resolution procedures of the Tariff or seek a determination from FERC as to the appropriate treatment
of the Grandfathered Agreement charges.
(f) When a Network Customer has designated Network Load outside the
Transmission Provider’s Transmission System under Section 31.3 of the Tariff, revenues collected by the
Transmission Provider for Network Integration Transmission Service for that portion of the Network
Customer’s Network Load shall be distributed among Transmission Owners on the same basis as the
revenues collected in connection with the provision of Point-To-Point Transmission Service.
(g) Sections II.B.2(a) through II.B.2.(e) above do not apply to Zone 1. In the event
a Transmission Owner within Zone 1 other than American Electric Power establishes its owner-specific zonal
annual revenue requirement (“OZRR”) as stated in Attachment H, that subsequent Transmission Owner will
be entitled to receive revenue, collected by the Transmission Provider from other Transmission Customers
within Zone 1 including any Transmission Owner within Zone 1 taking service under Section 39, in an
amount equal to one minus that Transmission Owner’s Load Ratio Share of the Zone 1 total Network Load
multiplied by that Transmission Owner’s OZRR.
(h) Nothing herein is intended to supersede or otherwise affect rights that any
Transmission Owner in a multi-owner Zone may have to seek designation of its facilities as a separate Zone
under the Tariff.
3. Revenue Credits – Tariff Attachment Z2
Network Integration Transmission Service Rrevenue collected by the Transmission Provider
attributed from Network Integration Transmission Service Customers to the use of Creditable Upgradesto be
paid to Upgrade Sponsors for use of Creditable Upgrades, pursuant to the provisions of Attachment Z2 of this
Tariff shall be paid to Upgrade Sponsors in accordance with Attachment Z2. will be distributed to those
Upgrade Sponsors in accordance with the provisions of that attachment.
C. Revenue Distribution -- Point-To-Point Transmission Service
Irrespective of the number of Transmission Owners in a Zone, and except to the extent required under
Section IV of this Attachment L, revenues collected by the Transmission Provider under Schedules 7 and 8
and revenues allocated pursuant to paragraphs II.B.1(b) and II.B 2(f). shall be distributed as follows:
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(a) In the event thatIf a Point-To-Point Transmission Service transactionreservation
could not be granted but for is enabled by the creditable use of one or more Creditable Upgrades, pursuant to
the provisions of Tariff Attachment Z2, the revenue from that transactionreservation will first be distributed
to the Upgrade Sponsors of such Creditable uUpgrades to satisfy the revenue credits due each in accordance
with the provisions of that aAttachment Z2. Any remaining revenue shall be distributed in accordance with all
other provisions of this Section C.
(ab) If the generation source(s) and load(s) are located within a single Zone, 50% of
the revenues shall be distributed to the Transmission Owner(s) in that Zone in proportion to their respective
shares of the ZRR, and 50% of the revenues shall be distributed to the Transmission Owner(s) in that Zone in
proportion to the MW-mile impacts incurred by each such Transmission Owner.
(bc) In all instances other than that described in the preceding paragraph : 50% of
the revenues shall be distributed to the Transmission Owners in proportion to their respective shares of the
sum of the Zonal Annual Transmission Revenue Requirements for all Zones; and 50% of the revenues shall
be distributed to the Transmission Owners whose facilities incur MW-mile impacts due to the transaction, in
proportion to the MW-mile impacts incurred by each such Transmission Owner. A Transmission Owner’s
OZRR used for this purpose shall be that stated in Attachment H. The MW-mile impacts shall be determined
by use of the procedures in Attachment S.
III. Distribution Of Revenues From Base Plan Zonal Charges and Region-wide Charges
A. Distribution of Revenues Based on Annual Transmission Revenue Requirements
Revenues derived from the component of the Region-wide Charge for Point-To-Point Transmission
Service that is associated with any amount reallocated from the Zonal Annual Transmission Revenue
Requirements, in accordance with Section IV.A of Attachment J, shall be distributed to Transmission
Owners proportionately to the distribution of revenues collected under Schedules 7 and 8 as provided in
Section II.C of this Attachment L. All other rRevenues associated with the Base Plan Zonal Annual
Transmission Revenue Requirements and with the Region-wide Annual Transmission Revenue Requirement,
specified in Attachment H and collected by the Transmission Provider under Schedule 11 of the Tariff but
excluding revenues collected pursuant to Sections III.B, III.C, and III.D of this Attachment L, and revenues
received by the Transmission Provider from another Interregional Planning Region for Interregional Projects,
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shall be distributed to Transmission Owners owning Base Plan Upgrades or upgrades within approved
Balanced Portfolios or Interregional Projects and to Transmission Owners with facilities in Zones from
which any amount has been reallocated from the Zonal Annual Transmission Revenue Requirements in
accordance with Section IV.A of Attachment J. Such revenue distribution shall be in proportion to the
Transmission Owners’ respective annual transmission revenue requirements for Base Plan Upgrades, annual
transmission revenue requirements for upgrades within approved Balanced Portfolios, annual transmission
revenue requirements for Interregional Projects, and amounts reallocated from the Zonal Annual
Transmission Revenue Requirements in accordance with Section IV.A of Attachment J.
B. Distribution of Point-To-Point Revenues under Zonal ATRR Reallocation
Revenues derived from the component of the Region-wide Charge for Point-To-Point Transmission
Service that is associated with any amount reallocated from the Zonal Annual Transmission Revenue
Requirements, in accordance with Section IV.A of Attachment J, shall be distributed to Transmission Owners
proportionately to the distribution of revenues collected under Schedules 7 and 8 as provided in Section II.C
of this Attachment L.
C. Distribution of Revenues for Creditable Upgrades Included in Schedule 11 Rates
Revenue collected by the Transmission Provider under Schedule 11 attributed to use of
Creditable Upgrades shall be distributed to the Upgrade Sponsors to which such revenues are due in
accordance with Section III.C.2 of Attachment Z2.
D. Distribution of Revenues to Other Interregional Planning Regions
Revenues associated with approved Interregional Projects receivedcollected by the Transmission
Provider under Schedule 11of the Tariff to compensate another Interregional Planning Region in accordance
with the interregional cost allocation pursuant to the Addendum(s) to Attachment O shall be distributed by
the Transmission Provider to the applicable Interregional Planning Region(s).
Section III with Charles Locke’s Revisions which include TRR 080 Tariff Revisions – 3/21/2013
IV. Distribution Of Other Revenues
1. Revenues associated with redispatch service will be paid to the generation owner providing the
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service for the Transmission Provider.
2. Revenues associated with Reactive Supply and Voltage Control from Generation Sources
Services under Schedule 2 of the Tariff will be paid to the generation owner providing the
service for the Transmission Provider consistent with the development of the charges under
Schedule 2.
3. Energy or revenues received as compensation for transmission losses shall be distributed
consistent with Attachment M to the Tariff.
4. Revenues associated with Scheduling, System Control and Dispatch Service under Schedule 1
shall be allocated to the Transmission Owners whose Control Area Operators within the
transmission system provide such service as follows:
a. For Firm or Non-Firm Point-To-Point Transmission Service, for through and out
transactions, Schedule 1 charge revenues shall be allocated to Transmission
Owners in proportion to the respective scheduling revenue requirement of each
such Transmission Owner associated with the provision of this service.
b. For Customers taking Firm or Non-Firm Point-To-Point Transmission Service, for
transactions into and within the Transmission System, Schedule 1 charge revenues
shall be allocated to Transmission Owner whose Zone is the Point of Delivery.
c. For Customers taking Network Integration Transmission Service, Schedule 1
charge revenues shall be allocated to Transmission Owner in whose Zone the load
is located.
5. Revenues associated with Tariff Administration Service under Schedule 1 will remain with
the Transmission Provider to pay for the costs of providing that service.
6. Payments associated with penalties imposed under this Tariff will be used to reduce the
Transmission Provider's Scheduling and Tariff Administration Service costs (though the non-
penalty portion of the charge will go back to the Transmission Owner(s) that actually provided
the service).
7. Transmission Owner costs associated with System Impact and Facilities Studies compensated
by the Transmission Customer shall go to the appropriate Transmission Owner(s).
8. The revenues associated with Direct Assignment Facilities shall go directly to the
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Transmission Owner(s) owning the facilities.
9. The revenues associated with Network Upgrades, not otherwise provided for in Section III of
this Attachment L, shall be first assigned to the Transmission Owner building the Network
Upgrades to meet the annual revenue requirements of such facilities. If multiple Transmission
Owners construct the facilities, the revenues shall be shared in accordance with each
Transmission Owner’s respective revenue requirement for such facilities or as otherwise
agreed by the Transmission Owners. The remaining revenues shall be allocated in accordance
with Section II of this Attachment L.
10. The revenues associated with Wholesale Distribution Service shall go directly to the
Transmission Owner(s) owning the facilities consistent with Schedule 10.
11. Any additional revenues received under Section 22.1 of the Tariff shall be treated in the same
manner as revenues under Section II.B.2 for single-owner Zones, and Section II.C.2 for multi-
owner Zones, of this Attachment L.
12. All revenues received by the Transmission Provider to compensate a Transmission Owner(s)
not party to a generation interconnection agreement for the construction of Network Upgrades
and Distribution Upgrades (as defined in Attachment V to the Tariff) associated with such
generation interconnection agreement will be distributed by the Transmission Provider to the
applicable Transmission Owner(s).
V. Adjustments To Revenue Allocations in the Event of Customer Non-Payments
If the amounts collected by the Transmission Provider for Transmission Services and Market Services
are insufficient to fully pay the Transmission Owners and providers of Market Services, then the following
procedures apply:
A. Definitions
The following definitions apply in this Section V of Attachment L. Capitalized terms used in this
Attachment L and not defined herein shall be given the meaning assigned to them under the Tariff.
1. Credit Support Documents: Any agreement or instrument in any way guaranteeing or
securing any or all of a Market Participant’s obligations under the Tariff (including, without limitation, the
Credit Policy), any agreement entered into under, pursuant to, or in connection with the Tariff or any
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agreement entered into under, pursuant to, or in connection with the Tariff or the Credit Policy, and/or any
other agreement to which the Transmission Provider and Market Participant are parties, including, without
limitation, any Guaranty, Letter of Credit, Credit and Security Agreement (Attachment B to the Credit Policy)
or agreement granting a security interest.
2. Default: Any default under Article Eight or otherwise under the Credit Policy.
3. Defaulting Market Participant: A Market Participant that defaults under section 8.1 of the
Credit Policy.
4. FERC: The Federal Energy Regulatory Commission.
5. Market Services: Services taken and/or provided pursuant to the Tariff, excluding
Transmission Services and interconnection obligations.
6. Non-Defaulting Market Participants: Market Participants, other than the Defaulting Market
Participant, who conducted business in the market during the time covered by the invoice(s) containing the
Unpaid Obligation.
7. Unpaid Obligation: An unpaid past due amount of an invoice pursuant to Section 7 of the
Tariff or for Market Services for which SPP does not reasonably expect payment in full and which SPP has
declared to be an Unpaid Obligation.
8. Uncollectible Obligation: An Unpaid Obligation that has not been paid within ninety (90)
days after SPP declared an invoice an Unpaid Obligation, or sooner, should by any means the Market
Participant’s Service Agreement be terminated.
B. General
SPP shall only be required to remit to the Transmission Owners, and providers of Market Services,
and customersUpgrade Sponsors due revenue credits, the revenues that it has collected, without dispute,
under the SPP Tariff for Market Services or Transmission Services, as applicable.
C. Procedures for Non-Payment of Amounts Invoiced for Market Services
1. The following procedures apply to defaults in payment of amounts invoiced for Market
Services. (With respect to defaults of amounts invoiced pursuant to Section 7 of the Tariff, see Section V.D.
of this Attachment L.) At such time as SPP concludes that SPP does not reasonably expect payment in full of
an unpaid past due amount, which SPP may conclude as early as within 1 day after the due date, then SPP
shall declare such unpaid past due amount to be an Unpaid Obligation. SPP will notify Market Participants of
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the declaration of an Unpaid Obligation by posting a notice to the OASIS. Such notification will identify the
Defaulting Market Participant, the amount of the Unpaid Obligation, the applicable week(s) of service for
which the Defaulting Market Participant was initially invoiced the Unpaid Obligation, and the future billing
week(s) in which SPP will, because of the Unpaid Obligation, reduce the revenues to be paid to all Non-
Defaulting Market Participants who conducted business in the market during the time covered by the invoice
applicable to the Unpaid Obligation.
SPP will then make reduced payments on the corresponding payout date to the Non-Defaulting
Market Participants receiving revenues for Market Services associated with the Unpaid Obligation. A
payment to a Non-Defaulting Market Participant will be reduced in amount equal to such Non-Defaulting
Market Participant’s pro rata share of the Unpaid Obligation.
Upon the earliest feasible date after declaring an Unpaid Obligation, SPP will take the following
additional steps: (i) identify and segregate all funds held by SPP with respect to the Defaulting Market
Participant; (ii) recover the Unpaid Obligation by drawing upon the entire amount of collateral provided by
the Defaulting Market Participant, provided that any amount of the Unpaid Obligation not paid by such draw
shall continue to be an Unpaid Obligation; (iii) seek to recover the Unpaid Obligation from any guarantor of
the Defaulting Market Participant’s obligations; (iv) seek to exercise other remedies under the Credit Support
Documents provided by the Defaulting Market Participant; and (v) pursue other available remedies for
Defaults, including, without limitation, initiating a filing with FERC to terminate the Service Agreement of
the Defaulting Market Participant. SPP may deviate from steps (i) through (v), including omission of steps
and use of other measures as SPP may determine, in its discretion, are appropriate to maximize collection,
minimize collection costs, and produce cost effective collection efforts relative to, for example, the likelihood
of collection of the Unpaid Obligation.
Any amounts received by SPP pursuant to this Section V.C.1. of this Attachment L shall be applied to
reduce the amount of the Unpaid Obligation if those amounts are received prior to the issuance of a notice to
cure the Default. After the notice to cure is issued, Section V.C.2. of this Attachment L will apply.
2. Payments by Defaulting Market Participants of Unpaid Obligations. This Section V.C.2
applies to amounts invoiced to Market Participants for Market Services only.
After SPP has declared an Unpaid Obligation, SPP will send the Defaulting Market Participant a
notice to cure the Default as specified in Section 8.3 of the SPP Credit Policy. The Defaulting Market
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Participant must take the following steps to cure its Default: (i) pay all unpaid obligations to SPP, including,
without limitation, the amount of the Unpaid Obligation, interest, and enforcement and collection costs; and
(ii) meet the creditworthiness requirements of SPP, including, without limitation, any additional financial
assurances that may be required by SPP given the Defaulting Market Participant’s prior Default.
In the event the Defaulting Market Participant attempts to cure its Default by making partial payment
of the Unpaid Obligation, the partial payment shall not be applied to reduce the Unpaid Obligation but shall
instead be segregated from other SPP funds. Such segregated partial payments shall accumulate until the full
amount of the Unpaid Obligation is cured by a series of two or more partial payments. In the event SPP
determines that the Unpaid Obligation is uncollectible pursuant to Section V.C.2. of this Attachment L and is
an Uncollectible Obligation, the segregated partial payments along with any interest shall be applied using the
formula set forth in Section V.C.3.b. of this Attachment L, and the funds will be distributed as described in
Section V.C.3.c. of this Attachment L. Section V.E. of this Attachment L applies if a Market Participant
provides partial payments for Unpaid Obligations of both Market Services and Transmission Services.
In the event the full amount of the Unpaid Obligation is paid by the Defaulting Market Participant
prior to SPP declaring the Uncollectible Obligation, those revenues will be distributed to Market Participants
in the same percentages as the previous reduction of revenues associated with the Unpaid Obligation.
3. Uplift. This Section V.C.3 of Attachment L applies to amounts invoiced to Market
Participants for Market Services only. Ninety (90) days after declaring an invoice an Unpaid Obligation or
sooner, should by any means the Market Participant’s Service Agreement be terminated, SPP will declare that
Unpaid Obligation an Uncollectible Obligation. SPP shall proceed to recover the Uncollectible Obligation
from all Market Participants who conducted business in the market during the period covered by the
invoice(s) associated with the Uncollectible Obligation(s) on a pro rata basis, with the amount of the
Uncollectible Obligation adjusted by the amount of the Unpaid Obligation recovered pursuant to Section
V.C.1. of this Attachment L and partial payments pursuant to Sections V.C.2. and V.E. of this Attachment L.
a. Eligibility for Share of Uncollectible Obligation.
The Uncollectible Obligation shall be allocated by SPP to all Non-Defaulting Market Participants that
had been invoiced by SPP during the same period of time as the unpaid invoice(s) of the Market Participant
whose Unpaid Obligation has been declared an Uncollectible Obligation.
b. Uncollectible Obligation Allocation Methodology.
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The formula below is the basis for allocating the Uncollectible Obligation to all Non-Defaulting
Market Participants who conducted business in the market during the time covered by the invoice(s)
containing the Uncollectible Obligation(s).
% Loss for MPA
=
MPA
Market Charges +
Market Credits in weekly invoicing cycle/
MPALL
(Market Charges + Market Credits) in weekly invoicing cycle.
Loss Obligation of MPA
= ((% Loss for MPA) x $ Amt of Uncollectible Obligation) minus
(-) (Reduction of Payments + Pro rata share of partial payment(s))
Where:
MP = Market Participant
Market Charges = The absolute value of all charge amounts associated with
invoices for Market Services.
Market Credits = The absolute value of all credit amounts associated with invoices
for Market Services.
MPALL
= All Market Participants other than Market Participants with Uncollectible
Obligations.
Reduction of Payment = The amount of the Unpaid Obligation originally assessed
to Market Participant as described in Section V.C.1. above.
Pro rata share of partial payment(s) = Any partial payments received during cure
period as described in Section V.C.2.
All individual charge amounts and all individual credit amounts invoiced for Market Services shall be
included in the calculation of Market Charges and Market Credits. The Market Charges and Market Credits
of Market Participants with Uncollectible Obligations will not be included in the calculation of the percentage
of the loss to be allocated to all Non-Defaulting Market Participants that had been invoiced by SPP during the
same period of time as the unpaid invoice(s) of the Defaulting Market Participant whose Unpaid Obligation
has been declared an Uncollectible Obligation.
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c. Application of Recovered Uncollectible Obligation.
Any funds that are attributable to an Uncollectible Obligation that are recovered by SPP (other than
amounts recovered by the uplift of the Uncollectible Obligations) after the Uncollectible Obligation has been
uplifted pursuant to Section V.C.3.b. of this Attachment L, shall first be applied to satisfy outstanding costs of
enforcement and collection of the Unpaid Obligation or Uncollectible Obligation, and any other amount due
to SPP under the Tariff or any other agreements. Any remaining funds attributable to an uplifted
Uncollectible Obligation, together with any remaining interest and late charges collected with respect to the
uplifted Uncollectible Obligation, shall be distributed pro rata to the Non-Defaulting Market Participants,
using the same formula specified under Section V.C.3.b. of this Attachment L to whom the Uncollectible
Obligation was uplifted and who satisfied their obligation to pay the uplifted Uncollectible Obligation.
D. Procedures for Non-Payment of Amounts Invoiced Pursuant to Section 7 of the Tariff
1. The following procedures apply to a Defaulting Market Participant with respect to defaults of
amounts invoiced pursuant to Section 7 of the Tariff. (With respect to defaults of amounts invoiced for
Market Services, see Section V.C. of this Attachment L.) Transmission Owners and customersUpgrade
Sponsors due revenue credits will receive revenues in accordance with Sections I and V.A. of this Attachment
L.
At such time as SPP concludes that SPP does not reasonably expect payment in full of an unpaid past
due amount, which SPP may conclude as early as within 1 day of the due date, then SPP shall declare such
unpaid past due amount to be an Unpaid Obligation. SPP will notify Market Participants of the declaration of
an Unpaid Obligation by posting a notice to the OASIS. Such notification will identify the Defaulting Market
Participant, the amount of the Unpaid Obligation, the applicable month of service for which the Defaulting
Market Participant was initially invoiced the Unpaid Obligation, and the future billing month in which SPP
will, because of the Unpaid Obligation, reduce the revenues to be paid to all Transmission Owners and
customersUpgrade Sponsors due revenue credits who received payments during the time covered by the
invoice containing the Unpaid Obligation.
SPP will then make reduced payments on the corresponding payout date to the Transmission Owners
and customersUpgrade Sponsors due revenue credits receiving revenues for invoices associated with the
Unpaid Obligation. A payment to a Transmission Owner or customerUpgrade Sponsor due revenue credits
will be reduced in amount equal to such Transmission Ownerentity’s pro rata share of the Unpaid Obligation.
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Upon the earliest feasible date after declaring an Unpaid Obligation, SPP will take the following
steps: (i) identify and segregate all funds held by SPP with respect to the Defaulting Market Participant; (ii)
recover the Unpaid Obligation by drawing upon the entire amount of collateral provided by the Defaulting
Market Participant, provided that any amount of the Unpaid Obligation not paid by such draw shall continue
to be an Unpaid Obligation; (iii) seek to recover the Unpaid Obligation from any guarantor of the Defaulting
Market Participant’s obligations; (iv) seek to exercise other remedies under the Credit Support Documents
provided by the Defaulting Market Participants; and (v) pursue other available remedies for Defaults,
including, without limitation, initiating a filing with FERC to terminate the Service Agreement of the
Defaulting Market Participant. SPP may deviate from steps (i) through (v), including omission of steps and
use of other measures as SPP may determine, in its discretion, are appropriate to maximize collection,
minimize collection costs, and produce cost effective collection efforts relative to, for example, the likelihood
of collection of the Unpaid Obligation. Any amounts received by SPP pursuant to this Section V.D.1. of this
Attachment L shall be applied to reduce the amount of the Unpaid Obligation if those amounts are received
prior to the issuance of a notice to cure the Default. After the notice to cure is issued, Section V.D.2. of this
Attachment L will apply.
2. Payments by Defaulting Market Participants of Unpaid Obligations. This Section V.D.2
applies to amounts invoiced to Market Participants pursuant to Section 7 of the Tariff only.
After SPP has declared an Unpaid Obligation, SPP will send the Defaulting Market Participant a
notice to cure their Default as specified in Section 8.3 of the SPP Credit Policy. The Defaulting Market
Participant must take the following steps to cure its Default: (i) pay all Unpaid Obligations to SPP, including,
without limitation, the amount of the Uncollectible Obligation, interest, and enforcement and collection costs;
and (ii) meet the creditworthiness requirements of SPP, including, without limitation, any additional financial
assurances that may be required by SPP given the Defaulting Market Participant’s prior Default.
In the event the Defaulting Market Participant attempts to cure its Default by making partial
payments, rather than apply a partial payment to the Unpaid Obligation, SPP shall segregate such partial
payments from other funds. Such segregated partial payments shall accumulate until the full amount of the
Unpaid Obligation is cured by a series of two or more partial payments. In the event that the Defaulting
Market Participant does not satisfy the entire Unpaid Obligation in full within 90 days of Default, SPP shall
remit to the Transmission Owners the segregated partial payments in the same percentage as the amount each
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Transmission Owner was originally owed of the original unpaid invoice. This remittance will occur 90 days
after the date of Default or sooner should by any means the Defaulting Market Participant’s Service
Agreement be terminated.
In the event the full amount of the Unpaid Obligation is paid by the Market Participant within 90 days
of Default, those revenues will be distributed in the same percentages as the previous reduction of revenues
associated with the Unpaid Obligation.
3. Application of Additional Recovered Unpaid Obligation
Any funds that are attributable to an Unpaid Obligation that are recovered by SPP subsequent to the
ninety (90) day period after SPP declares the Unpaid Obligation pursuant to Section V.D.1. of this
Attachment L, shall first be applied to satisfy outstanding costs of enforcement and collection of the Unpaid
Obligation, and any other amount due to SPP under the Tariff or any other agreements. Any remaining funds
attributable to such an Unpaid Obligation, together with any remaining interest and late charges collected
with respect to the Unpaid Obligation, shall be distributed pro rata to the Transmission Providers and
customers due revenue creditsUpgrade Sponsors, using the same procedure specified under Section V.D.2. of
this Attachment L.
E. Default of Both Market Service and Tariff Section 7 Invoices
In the event a Market Participant simultaneously Defaults on invoices for Market Services and Tariff
Section 7 charges, and notices to cure have been sent as specified in Section 8.3 of the SPP Credit Policy and
if the Defaulting Market Participant has attempted to cure its Defaults by making partial payments to the
Unpaid Obligations, SPP shall segregate such partial payment(s) from other funds. Such segregated partial
payments shall accumulate until the full amount for all Unpaid Obligations is cured by a series of two or more
partial payments. In the event that the Defaulting Market Participant does not satisfy the entire Unpaid
Obligation in full within 90 days of the Default, SPP shall remit to the Transmission Owners impacted by
Section V.D. of this Attachment L and to Market Participants impacted by Section V.C. of this Attachment L
the segregated amount pursuant to Sections V.D. and V.C., respectively. To the extent the Defaulting Market
Participant has identified the invoice(s) with which such partial payments were associated or to the extent
SPP reasonably identifies such invoice(s), such partial payments shall be distributed in accordance with the
provisions for the type of service identified for the associated invoice(s). In the event the Defaulting Market
Participant has not indicated the invoice(s) that partial payments are directed to and SPP does not reasonably
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determine which invoice(s) are associated with such partial payments, SPP shall remit to all Market
Participants the percentage of such partial payments as the amount they were originally owed of the combined
unpaid invoices. This remittance will occur 90 days after the date of Default or sooner should by any means
the Market Participant’s Service Agreement be terminated.
6 VI. Exception to the Provisions of Section II.C of this Attachment L
Pursuant to the Agreement of the Southwest Power Pool Transmission Owners and Southwest Power
Pool for the Upgrade for the LaCygne to Stilwell 345 kV Transmission Line (“LaCygne-Stilwell
Agreement”) submitted to the FERC on February 20, 2003 in Docket No. ER03-547, and conditionally
accepted by the Commission in an order dated April 10, 2003, the Transmission Provider and the
Transmission Owners agreed to create an exception to the provisions of this attachment L for the sole purpose
of distributing revenues associated with upgrades to the LaCygne to Stilwell 345 kV line, as set forth in the
LaCygne-Stilwell Agreement, which has been incorporated into this Attachment L.
[BGF3]
Attachment Z1
V. Cost Recovery for Service Upgrades
a. The cost of Service Upgrades shall be recovered in accordance with this Section. For Point-to-
Point Service, the levelized monthly revenue requirement derived from the cost allocation
process shall be compared to the charge applicable for each request under the transmission
access charges of Schedule 7, Sections 1 and 7; and each customer shall be required to pay the
higher of the total monthly transmission access charges or the monthly revenue requirement
associated with the directly assigned portion of the Service Upgrade, if any. For Network
Integration Transmission Service, the charge shall be a direct assignment charge pursuant to
Schedule 9, Section 4; and each customer will be required to pay the monthly revenue
requirement associated with the directly assigned portion of the Service Upgrade, if any, in
addition to the total monthly transmission access charges applicable under Schedule 9,
Sections 1 and 6. Cost recovery from a customer of the revenue requirement for the directly
assigned portion of a Service Upgrade allocated to such customer will be accomplished over
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the duration of the customer’s transmission service request.
b. For Service Upgrades associated with Designated Resources, to the extent a waiver is not
granted pursuant to Section III of Attachment J, the cost in excess of the Safe Harbor Cost
Limit of Service Upgrades associated with Designated Resources shall be recovered in
accordance with this Section VVI. Transmission Customers paying the above charges may
receive credits in accordance with Attachment Z2 of this Tariff.
c. The following process shall be used to allocate Directly Assigned Upgrade Costs in order to
minimize the total number of new Creditable Upgrades created out of an Aggregate
Transmission Service Study.
1. Identify each Network Upgrade that is not ineligible for one hundred percent (100%)
base plan funding and will become a Creditable Upgrade and each existing Creditable
Upgrade that is impacted by theany transmission service requests in the current
Aggregate Transmission Service Study.
2. Any Directly Assigned Upgrade Costs associated with a transmission service request
shall be Aallocated to the NetworkCreditable Upgrade(s) identified in step
oneaccordance with Section V.c.1 of this Attachment Z1 the Directly Assigned
Upgrade Costs from each transmission service request up to the maximum amount of
upgrade costs allocated to thethe transmission service request for such
NetworkCreditable Upgrade(s). in the current Aggregate Transmission Service Study.
3. For each transmission service request, aAny Directly Assigned Upgrade Costs
associated with a transmission service request that are not allocated in accordance with
Section V.c.2 of this Attachment Z1step two shall be allocated to the upgrades
associated with that transmission service request so as to: i) minimize the number of
new Creditable Upgrades arising from the current Aggregate Transmission Service
Study; and ii) when possible, allocate any remaining Directly Assigned Upgrade Costs
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to the an associated Network Upgrade(s) required by that request that which is
affected by the most transmission service requests.
Attachment Z2
I. Creditable Upgrades
A. Any Network Upgrade which was paid for, in whole or part, through revenues collected from a
Transmission Customer, Network Customer, or Generation Interconnection Customer through
a Directly Assigned Upgrade Costs shall be considered to be a Creditable Upgrade.
B. A Sponsored Upgrade is not automatically a Creditable Upgrade nor is it automatically eligible
to receive revenue credits since Sponsored Upgrades are not built to satisfy a need identified
by the Transmission Provider. For a Sponsored Upgrade to become a Creditable Upgrade, the
Transmission Provider must determine that the Sponsored Upgraded is needed as part of the
Transmission System. as a result of an ITP Near Term Assessment as described in Attachment
O, an Aggregate Transmission Service Study, or a Generation Interconnection Request. At the
time the Sponsored Upgrade becomes a Creditable Upgrade, the Transmission Provider shall
determine the direction of flow which caused the Creditable UpgradeSponsored Upgrade to be
needed and the capability in the opposite direction.
C. A Creditable Upgrade shall cease being a Creditable Upgrade when: (1) either the facility is
permanently removed from service, (2) all the Upgrade Sponsors have been fully
compensated, or (3) the costs have been fully included in rates in accordance with Section III
of this Attachment Z2.
6.8 MOVED TO Z2, SEC II I. Revenue Crediting
Transmission Customers paying Directly Assigned Upgrade Costs for Service Upgrades or that are in
excess of the Safe Harbor Cost Limit for Network Upgrades associated with new or changed Designated
Resources and Project Sponsors paying Directly Assigned Upgrade Costs for Sponsored Upgrades shall
receive revenue credits in accordance with this Attachment Z2. Generation Interconnection Customers paying
for Network Upgrades shall receive credits for new transmission service using the facility as specified in
Attachment Z1. The credit amount shall be recovered, with interest calculated in accordance with 18 CFR
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§35.19a(a)(2)(ii), from new transmission service using the facility as defined below until the credit due is
zero. The provisions of this Attachment Z2 are applicable to Transmission Owners subject to the provisions
of Section 39.1 of this Tariff.
1. New Point-To-Point Transmission Service: Revenues from new Point-to-Point Transmission
Service that could not be provided but for the new Network Upgrade will be included for
crediting purposes. For each new point-to-point reservation that could not be provided but for
the new Network Upgrade, made after (i) the commitment for such new Network Upgrade by a
Project Sponsor or (ii) the request causing the need for such new Network Upgrade, with
service commencing after or extending beyond the date the facility upgrade is completed, the
Transmission Customer or Project Sponsor shall receive a portion of the transmission service
charge equal to the positive response factor of such new reservation on the new Network
Upgrade times the portion of the new reservation capacity that could not be provided but for
the new Network Upgrade times the rate applicable to such new reservation.
For crediting purposes, the Transmission Provider shall perform a one-time calculation of the
response factor of such new reservation on the new Network Upgrade. This allocation from
new service shall continue until the Transmission Customer or Project Sponsor has been fully
compensated for all charges paid in excess of the normally applicable transmission access
charges pursuant to Schedules 7, 8 or 9 and 11.
2. New Network Integration Transmission Service and Service to Transmission Owners
Taking Service Under Non-Rate Terms and Conditions: Credits will be provided for (i)
new Long-Term Network Integration Transmission Service, and (ii) new transmission service
taken under the non-rate terms and conditions of this Tariff by Transmission Owners subject to
Section 39.1 of this Tariff, that could not be provided but for the new Network Upgrade to
accommodate designation of new Network Loads or Transmission Owner’s(s’) loads, new
Designated Resources or increases in the designation of existing Designated Resources above
previously designated levels. Credits shall be determined based upon the subsequent
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incremental use of the Network Upgrade for such new or increased Network Load or
Transmission Owner load or Network Resource.
The annual credit amount to be billed and paid monthly by a Network Customer, or included
in rates, for each such new or increased use shall be the product of the annual revenue
requirement associated with the Network Upgrade and the ratio of the incremental impact
placed on the Network Upgrade by each such new or increased use to the total of the
incremental impacts placed on the Network Upgrade by all currently and previously identified
incremental Network Integration Transmission Service and Long-Term Firm Point-To-Point
Transmission Service uses of the Network Upgrade. For the calculation of such credits to be
given to a Project Sponsor paying Directly Assigned Upgrade Costs associated with the
Network Upgrade, the incremental use assigned to such Project Sponsor shall be the capacity
of the Network Upgrade minus all currently and previously identified incremental Network
Integration Transmission Service and Long-Term Firm Point-To-Point Transmission Service
uses. The cost of such credit amount shall be paid by the Network Customer making such new
or increased use of the Network Upgrade, or included in rates pursuant to the Base Plan and
Balanced Portfolio funding formulas in Attachment J, in addition to all other applicable
charges under this Tariff.
a. For use of Service Upgrades, such credits shall be given to the original Transmission
Customer paying Directly Assigned Upgrade Costs for the Service Upgrade and to all
previously identified incremental Network Integration Transmission Service and Long-
Term Firm Point-To-Point Transmission Service uses, including prior incremental
Network Integration Transmission Service uses that resulted in the obligation to pay
credits. The grant of such credits shall be in proportion to the fraction of the annual
revenue requirement associated with the Network Upgrade for which they are
responsible, net of any credits previously applied.
b. For use of Sponsored Upgrades, such credits to a Project Sponsor paying Directly
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Assigned Upgrade Costs for a Sponsored Upgrade shall be given first to the Project
Sponsor from new transmission service using the Sponsored Upgrade until the credit
due to the Project Sponsor for that Sponsored Upgrade is zero. Then such credits shall
be given to all previously identified incremental Network Integration Transmission
Service and Long-Term Firm Point-To-Point Transmission Service uses, including
prior incremental Network Integration Transmission Service uses that resulted in the
obligation to pay credits. The grant of such credits shall be in proportion to the fraction
of the annual revenue requirement associated with the Network Upgrade for which they
are responsible, net of any credits previously applied.
3. Power Controlling Devices:
a. New Network Integration Transmission Service: Credits will be provided for new
Long-Term Network Integration Transmission Service using the device in either direction to
accommodate designation of new Network Loads, new Designated Resources or increases in
the designation of existing Designated Resources above previously designated levels. Credits
shall be determined based upon the subsequent additional incremental use of the device by any
such new or increased use.
The annual credit amount to be billed and paid monthly by a Network Customer, or included
in rates, for each such new or increased use shall be the product of the annual revenue
requirement associated with the device and the ratio of the incremental impact placed on the
device by each such new or increased use to the total of the incremental impacts placed on the
device by all currently and previously identified incremental Network Integration
Transmission Service and Long-Term Firm Point-To-Point Transmission Service uses of the
device in both directions. For the calculation of such credits to be given to a Project Sponsor
paying Directly Assigned Upgrade Costs associated with the device, the incremental use
assigned to such Project Sponsor shall be the capacity of the device in both directions minus
all currently and previously identified incremental Network Integration Transmission Service
and Long-Term Firm Point-To-Point Transmission Service uses of the device in both
Tariff Revision Request (TRR)
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directions. The cost of such credit amount shall be paid by the Network Customer making
such new or increased use of the device, or included in rates pursuant to the Base Plan and
Balanced Portfolio funding formulas in Attachment J, in addition to all other applicable
charges under this Tariff.
i. For use of Service Upgrades, such credits shall be given to the original Transmission
Customer paying Directly Assigned Upgrade Costs for the Service Upgrade and to all
previously identified incremental Network Integration Transmission Service and Long-
Term Firm Point-To-Point Transmission Service uses, including prior incremental
Network Integration Transmission Service uses that resulted in the obligation to pay
credits. The grant of such credits shall be in proportion to the fraction of the annual
revenue requirement associated with the Network Upgrade for which they are
responsible, net of any credits previously applied.
ii. For use of Sponsored Upgrades, such credits to a Project Sponsor paying Directly
Assigned Upgrade Costs for a Sponsored Upgrade shall be given first to the Project
Sponsor from new transmission service using the Sponsored Upgrade until the credit
due the Project Sponsor for that Sponsored Upgrade is zero. Then such credits shall be
given to all previously identified incremental Network Integration Transmission
Service and Long-Term Firm Point-To-Point Transmission Service uses, including
prior incremental Network Integration Transmission Service uses that resulted in the
obligation to pay credits. The grant of such credits shall be in proportion to the fraction
of the annual revenue requirement associated with the Network Upgrade for which they
are responsible, net of any credits previously applied.
b. New Point-To-Point Transmission Service: Crediting for Long-Term Firm Point-To-
Point Transmission Service using the power controlling device in either direction shall be a
portion of the transmission service charge equal to the positive response factor of such new
reservation on the device times the new reservation capacity times the rate applicable to such
Tariff Revision Request (TRR)
Page 43 of 53
new reservation less any revenue credits applicable to other Network Upgrades on the
transmission path. Crediting for Short-Term Firm Point-To-Point Transmission Service and
Non-Firm Point-To-Point Transmission Service using the device in either direction shall be the
percent usage of the total revenue received by the Transmission Provider that is not required
for other transmission funding obligations.
II. Revenue Crediting
An Upgrade Sponsor shall be eligible to receive revenue credits in accordance with this Attachment
Z2. The Directly Assigned Upgrade CostsTransmission Customers paying Directly Assigned Upgrade Costs
for Service Upgrades or that are in excess of the Safe Harbor Cost Limit for Network Upgrades associated
with new or changed Designated Resources and Project Sponsors paying Directly Assigned Upgrade Costs
for Sponsored Upgrades shall receive revenue credits in accordance with this Attachment Z2. Generation
Interconnection Customers paying for Network Upgrades shall receive credits for new transmission service
using the facility as specified in Attachment Z1. The credit amount shall be are recoverableed, with interest
calculated in accordance with 18 CFR §35.19a(a)(2)(ii), from new transmission service using the facility as
defined below until the amount owed the Upgrade Sponsorcredit due is zero. The provisions of this
Attachment Z2 are applicable to Transmission Owners subject to the provisions of Section 39.1 of this Tariff.
A1. New Point-To-Point Transmission Service:
Revenues from new Point-to-Point Transmission Service that could not be provided but for the
Creditablenew Network Upgrade(s) will be used, in whole or in part,included for crediting
purposes. For each new point-to-point reservation that could not be provided but for one or
more Creditable Upgradesthe new Network Upgrade, made after (i) the commitment for such
Creditablenew Network Upgrade by an ProjectUpgrade Sponsor or (ii) the request causing the
need for such Creditablenew Network Upgrade, with service commencing after or extending
beyond the date the Creditablefacility uUpgrade is completed, the UpgradeTransmission
Customer or Project Sponsor for each affected Creditable Upgrade shall receive a portion of
the transmission service charge equal to the positive response factor of such new reservation
on the Creditablenew Network Upgrade times the portion of the new reservation capacity that
Tariff Revision Request (TRR)
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could not be provided but for the Creditablenew Network Upgrade times the rate applicable to
such new reservation.
For crediting purposes, the Transmission Provider shall perform a one-time calculation of the
response factor of such new reservation on the Creditablenew Network Upgrade. This
allocation from new service shall continue until the UpgradeTransmission Customer or Project
Sponsor has been fully compensated for all charges paid in excess of the normally applicable
transmission access charges pursuant to Schedules 7, 8 or 9 and 11.
RTWG Reviewed – March 20, 2013
B2. New Network Integration Transmission Service and Service to Transmission Owners
Taking Service Under Non-Rate Terms and Conditions:
Revenue for Credits will be provided fromfor (i) new Long-Term Network Integration
Transmission Service, and (ii) new transmission service taken under the non-rate terms and
conditions of this Tariff by Transmission Owners subject to Section 39.1 of this Tariff, that
could not be provided but for one or more Creditable Upgradesthe new Network Upgrade to
accommodate designation of new Network Loads or Transmission Owner’s(s’) loads, new
Designated Resources or increases in the designation of existing Designated Resources above
previously designated levels. Credits shall be determined based upon the subsequent
incremental use of each affected Creditablethe Network Upgrade for such new or increased
Network Load or Transmission Owner load or Network Resource.
The annual credit amount to be billed and paid monthly by a Network Customer, or included
in rates, for each such new or increased use of a Creditable Upgrade shall be the product of the
total [BGF4]annual revenue requirement associated with the CreditableNetwork Upgrade and the
ratio of the incremental impact placed on the CreditableNetwork Upgrade by each such new or
increased use to the total of the incremental impacts placed on the CreditableNetwork Upgrade
by all currently and previously identified incremental Network Integration Transmission
Service and Long-Term Firm Point-To-Point Transmission Service uses of the
CreditableNetwork Upgrade.
Tariff Revision Request (TRR)
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For the calculation of such credits to be given to an ProjectUpgrade Sponsor for subsequent
use of a Creditablepaying Directly Assigned Upgrade Costs associated with the Network
Upgrade, the incremental use assigned to such ProjectUpgrade Sponsor shall be the capacity of
the CreditableNetwork Upgrade minus all currently and previously identified incremental
Network Integration Transmission Service and Long-Term Firm Point-To-Point Transmission
Service uses. The cost of such credit amount shall be paid by the Network Customer making
such new or increased use of the CreditableNetwork Upgrade, or included in rates pursuant to
the Base Plan and Balanced Portfolio funding formulas in Attachment J, in addition to all other
applicable charges under this Tariff.
1a. For use of Creditable Upgrades which are also Service Upgrades, such credits shall be
given to the original Transmission Customer paying Directly Assigned Upgrade
Sponsor Costs for the Service Upgrade and to all previously identified Upgrade
Sponsors from incremental Network Integration Transmission Service and Long-Term
Firm Point-To-Point Transmission Service uses, including prior incremental Network
Integration Transmission Service uses that resulted in the obligation to pay credits.
The grant of such credits shall be in proportion to the fraction of the annual revenue
requirement associated with the CreditableNetwork Upgrade for which each Upgrade
Sponsor isthey are responsible, net of any credits previously applied.
2b. For use of Sponsored Upgrades that qualify as Creditable Upgrades, such revenue
credits to a Project Sponsor paying Directly Assigned Upgrade Costs for a Sponsored
Upgrade shall be given first to the Project Sponsor from new transmission service
using the CreditableSponsored Upgrade until the credit due to the Project Sponsor for
that CreditableSponsored Upgrade is zero. Then such revenue credits shall be given to
all other Upgrade Sponsor(s) of the Creditable Upgrade. The grant of such credits
shall be in proportion to the fraction of the annual revenue requirement associated with
the Creditable Upgrade for which theyeach Upgrade Sponsor are is responsible, net of
any credits previously applied.
Tariff Revision Request (TRR)
Page 46 of 53
3. For use of Creditable Upgrades associated with a Generator Interconnection
Agreement, revenue credits from new transmission service using the Creditable
Upgrade shall be given firstidentified incremental Network Integration Transmission
Service and Long-Term Firm Point-To-Point Transmission Service uses, including
prior incremental Network Integration Transmission Service uses that resulted in the
obligation to the Generation Interconnection Customer(s) associated with the
Creditable Upgrade until the credit due is zero. Then such revenue credits shall be
given to all other Upgrade Sponsors of the Creditable Upgrade.pay credits. The grant
of such credits shall be in proportion to the fraction of the annual revenue requirement
associated with the CreditableNetwork Upgrade for which theyeach Upgrade Sponsor
are is responsible, net of any credits previously applied.
C3. Power Controlling Devices:
1 a. New Network Integration Transmission Service: Credits will be provided for new
Long-Term Network Integration Transmission Service using the device in either direction to
accommodate designation of new Network Loads, new Designated Resources or increases in
the designation of existing Designated Resources above previously designated levels. Credits
shall be determined based upon the subsequent additional incremental use of the device by any
such new or increased use.
The annual credit amount to be be billed and paid monthly by a Network Customer, or
included in rates, for each such new or increased use of a Creditable Upgrade shall be the
product of the annual revenue requirement associated with the device and the ratio of the
incremental impact placed on the device by each such new or increased use to the total of the
incremental impacts placed on the device by all currently and previously identified incremental
Network Integration Transmission Service and Long-Term Firm Point-To-Point Transmission
Service uses of the device in both directions.
Tariff Revision Request (TRR)
Page 47 of 53
For the calculation of such credits to be given to an ProjectUpgrade Sponsor for subsequent
use ofpaying Directly Assigned Upgrade Costs associated with the device, the incremental use
assigned to such ProjectUpgrade Sponsor shall be the capacity of the device in both directions
minus all currently and previously identified incremental Network Integration Transmission
Service and Long-Term Firm Point-To-Point Transmission Service uses of the device in both
directions. The cost of such credit amount shall be paid by the Network Customer making
such new or increased use of the device, or included in rates pursuant to the Base Plan and
Balanced Portfolio funding formulas in Attachment J, in addition to all other applicable
charges under this Tariff.
i. For use of Creditable Upgrades which are also Service Upgrades, such credits shall be
given to the original Transmission Customer paying Directly Assigned Upgrade
Sponsor Costs for the Service Upgrade and to all previously identified Upgrade
Sponsors from incremental Network Integration Transmission Service and Long-Term
Firm Point-To-Point Transmission Service uses, including prior incremental Network
Integration Transmission Service uses that resulted in the obligation to pay credits.
The grant of such credits shall be in proportion to the fraction of the annual revenue
requirement associated with the Creditable Network Upgrade for which each Upgrade
Sponsor isthey are responsible, net of any credits previously applied.
ii. For use of Sponsored Upgrades that qualify as Creditable Upgrades, such credits to a
Project Sponsor paying Directly Assigned Upgrade Costs for a Sponsored Upgrade
shall be given first to the Project Sponsor from new transmission service using the
CreditableSponsored Upgrade until the credit due the Project Sponsor for that
CreditableSponsored Upgrade is zero. Then such credits shall be given to other
Upgrade Sponsor(s) of Then such credits shall be given to all previously identified
incremental Network Integration Transmission Service and Long-Term Firm Point-To-
Point Transmission Service uses, including prior incremental Network Integration
Transmission Service uses that resulted in the Creditable Upgrade.obligation to pay
Tariff Revision Request (TRR)
Page 48 of 53
credits. The grant of such credits shall be in proportion to the fraction of the annual
revenue requirement associated with the Creditable Upgrade for which theyeach
Upgrade Sponsor areis responsible, net of any credits previously applied.
iii. For use of Creditable Upgrades associated with a Generator Interconnection
Agreement, credits from new transmission service using the Creditable Upgrade shall
be given first to the Generation Interconnection Customer(s) associated with the
Creditable Upgrade until the credit due is zero. Then such credits shall be given to all
other Upgrade Sponsor(s) of the Creditable Upgrade. The grant of such credits shall be
in proportion to the fraction of the annual revenue requirement associated with the
CreditableNetwork Upgrade for which theyeach Upgrade Sponsor areis responsible,
net of any credits previously applied.
b2. New Point-To-Point Transmission Service:
Crediting for Long-Term Firm Point-To-Point Transmission Service using the power
controlling device in either direction shall be a portion of the transmission service
charge equal to the positive response factor of such new reservation on the device times
the new reservation capacity times the rate applicable to such new reservation less any
revenue credits applicable to other Network Upgrades on the transmission path.
Crediting for Short-Term Firm Point-To-Point Transmission Service and Non-Firm
Point-To-Point Transmission Service using the device in either direction shall be the
percent usage of the total revenue received by the Transmission Provider that is not
required for other transmission funding obligations.
6.9 II. Future Roll-In
When a facility upgrade being paid for pursuant to the provisions of Attachment Z1 to this Tariff is
rolled into the revenue requirements used for the development of generally applicable transmission service
rates, the Transmission Owner that constructed the facility upgrade shall pay the remaining balance of each
Tariff Revision Request (TRR)
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customer’s unrecovered payments described in Sections VI.A and VI.B of Attachment Z1 that are applicable
to that facility upgrade. All customers who have upgraded facilities and have remaining balances subject to
cost recovery pursuant to Section VI of Attachment Z1, shall be paid in full. The customer shall continue to
pay the charges specified in the customer’s transmission service agreement for the transmission service
initially reserved.
6.8 III. Future Inclusion of Creditable Upgrades Into Rates
All or part of a Creditable Upgrade may be included in the revenue requirements used for the
development of generally applicable transmission service rates in accordance with this Section III of
Attachment Z2.
A. Qualifications
Each year as part of the ITP Near Term Assessment described in Section III of Attachment O,
the Transmission Provider will evaluate each Creditable Upgrade to determine if the cost of
the upgrade is eligible for inclusion in the generally applicable transmission rates. In order for
a Creditable Upgrade to be included in rates, loading on the Creditable Upgrade in the summer
peak planning model for the first year of the ITP Near Term Assessment must be greater than
or equal to: (i) 30% of the added capacity of the Creditable Upgrade under normal system
conditions; and (ii) 65% of the added capacity of the Creditable Upgrade under a single
contingency reliability analysis.
B. Buy out amount
When eligibility is established, the Transmission Provider will offer to pay the Upgrade
Sponsor an amount in lieu of revenue credits as described below:
1. If the Upgrade Sponsor paid for the Network Upgrade with a single payment of the
engineering and construction cost, the Transmission Provider will offer to pay the
Upgrade Sponsor the lesser of the revenue credits the Upgrade Sponsor is eligible to
receive in accordance with Section II of this Attachment Z2 or the depreciated book
value of the upgrade[LC5].
Tariff Revision Request (TRR)
Page 50 of 53
2. If the Upgrade Sponsor paid, or is paying, the net present value of the annual revenue
requirements of the Creditable Upgrade over a period of time, the Transmission
Provider will offer to pay the Upgrade Sponsor the lesser of the following:
a. The remaining revenue credits the Upgrade Sponsor is eligible to receive;
b. The Net Plant value (or depreciated book value) of the facility; or
c. The greater of:
i. The net present value (“NPV”) of the benefits received by the region
between the in-service date and the buy-out date, which shall be
calculated by determining the NPV of the yearly differences between
the payments made by the Upgrade Sponsor and the annual transmission
revenue requirements of the Creditable Upgrade and the payments made
by the Upgrade Sponsor;[LC6] or
ii. The NPV[LC7] of the estimated future credits for the remainder of the life
of the Network Upgrade assuming that the future annual credits shall be
equal to the historical annual average credits paid to the Upgrade
Sponsor. For purposes of this calculation the life of the Network
Upgrade shall be 40 years.
C. Accepting an Offer
Within ninety (90) days, the Upgrade Sponsor may accept the offer from the Transmission
Provider. Ootherwise, the Upgrade Sponsor shall continue to receive credits in accordance
with this Attachment Z2. If the Upgrade Sponsor elects to accept the offer, the Transmission
Provider will pay the Upgrade Sponsor in the following manner:
1. For a Creditable Upgrade, or portions of a Creditable Upgrade, paid for with an upfront
payment:
a. The Transmission Provider shall collect the amount of the offer from the
Tariff Revision Request (TRR)
Page 51 of 53
Transmission Owner which owns the Creditable Upgrade. At its sole
discretion, tThe Transmission Owner mayshall increase its book valueamount
for the Creditable Upgrade by anthe amount up to the payment amountof the
payment.[LC8]
b. The Transmission Provider shall pay the Upgrade Sponsor the amount agreed to
and the portion of the Creditable Upgrade related to the Upgrade Sponsor will
cease to be a Creditable Upgrade and all revenue credits to that Upgrade
Sponsor shall cease.
2. For a Creditable Upgrade, or portion of a Creditable Upgrade, paid for through a series
of payments due to an agreement under this Tariff:
a. If the Upgrade Sponsor is still obligated to make payments due to an contract-
agreement under this Tariff with the Transmission Provider, tThe Upgrade
Sponsor will continue to make the payments,; however, the Transmission
Provider will pay the Upgrade Sponsor a credit that is exactly equal to the
Upgrade Sponsor’s payment.
b. The amount to be paid to the Upgrade Sponsor shall be collected through Base
Plan rates by increasing the amount of the ATRR in the Zone as shown in Table
1, Column 76 of Attachment H or through regional rates by increasing the
amount in Table 2, line 5 of Attachment H, as appropriate[LC9]. The amount
added to the Base Plan rates shall be capped at no more than a 5%
increase[LC10]. in a single month. If the amount owed the Upgrade Sponsor is
greater than a 5% monthly increase, then the payment to the Upgrade Sponsor
shall be made in equal monthly amounts over the shortest period of time, with
interest in accordance with 18 CFR §35.19a(a)(2)(ii), not to exceed a 5%
increase from the base ATRR in a single month[BGF11].[BGF12] The change in
either the Table 1 or Table 2 totals in Attachment H shall be reflected in the
RRR file and posted on the Transmission Provider’s website.
Tariff Revision Request (TRR)
Page 52 of 53
b. RT
c.
Proposed Market Protocol Language Revision (Redlined) n/a
Tariff Revision Request (TRR)
Page 53 of 53
Proposed Business Practices Language Revision (Redlined)
n/a
Proposed Criteria Language Revision (Redlined)
n/a
Revisions to Other Corporate Documents (Redlined)
n/a
Regional Tariff Working Group Meeting
Date March 21, 2013 Last Name First Name Company Email Attend
Members
Andrysik Richard LES [email protected] Phone
Cecil Walt MoPSC [email protected]
Dowling Bill Midwest Energy, Inc. [email protected]
Haner Luke Omaha Public Power District [email protected] Phone
Hestermann Tom Sunflower Electric Power Corp. [email protected] X
Janssen Rob Dogwood Energy [email protected] Phone
Kays David Oklahoma Gas & Electric [email protected] X
Kolb Lloyd Golden Spread Electric Cooperative [email protected] X
Littleton Tom OMPA [email protected] X
Liu Bernard Xcel Energy [email protected] X
Locke Charles Kansas City Power & Light
Company [email protected] X
Malone Paul NPPD [email protected] Phone
Pennybaker Robert American Electric Power [email protected] Phone
Reed Dennis Westar Energy [email protected] X
Rowland Neil Kansas Municipal Energy Agency
Shields Robert Arkansas Electric Cooperative
Corporation [email protected] Phone
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] Phone
Wagner Nicole Southwest Power Pool [email protected] Phone
Fricano Brenda Southwest Power Pool [email protected] X
Last Name First Name Company Email
Anderson Gene OMPA
Anthony Gay Southwest Power Pool [email protected]
Binette Matt Wright & Talisman [email protected] Phone
Bumgarner Carrie Wright & Talisman [email protected]
Busbee Alfred Southwest Power Pool [email protected] Phone
Camp Wayne Accenture [email protected]
Cates Charles Southwest Power Pool [email protected]
Last Name First Name Company Email
Choate Marisa Southwest Power Pool [email protected]
Fox Kip AEP [email protected]
Gallup Terri AEP [email protected]
Gaw Steve Wind Coalition [email protected] Phone
Gay Ryan Southwest Power Pool [email protected]
Giessmann Dena Southwest Power Pool [email protected]
Greenwalt Jared Southwest Power Pool [email protected]
Hamilton Sherry Southwest Power Pool [email protected]
Harward Matt Southwest Power Pool [email protected]
Hayes Alison Southwest Power Pool [email protected]
Kelly Patti Southwest Power Pool [email protected]
Kentner Tessie Southwest Power Pool [email protected]
Lucas Antoine Southwest Power Pool [email protected]
Miller Brittney Arkansas PSC [email protected] Phone
Mitchell Ty Southwest Power Pool [email protected]
Moffet Michael Sunflower Electric Power Coop [email protected]
Mooney Catherine Southwest Power Pool [email protected]
Mosier Pat APSC [email protected]
Onnen Katy KCPL [email protected] Phone
Polk Susan Southwest Power Pool [email protected]
Purdy Steve Southwest Power Pool [email protected]
Reed Wendy Wright and Talisman [email protected]
Roach Temujin SPP [email protected]
Shumate Walt Shumate & Associates [email protected]
Simpson Carrie Southwest Power Pool [email protected]
Sundman Roy Training and Support Services, Inc. [email protected]
Thomas Mena PUC Texas State
Claborn Shawnee PUC Texas State Phone
Cade Bruce Xcel
DeBaun Tom KCC Phone
McKinnie Adam
Nickell Lanny SPP
Hocker Jeff SWPA
Dobson Alex OMPA
Hooten Brett SPP Phone
Safuto Robert Customized Energy Solutions Phone
Sidman Kara [email protected] Phone
Sunderman Derek [email protected] Phone
Samson Eric SPP Phone
RTWG Review
TRR 089 - Order 1000 Seams Agreement Tariff Revisions
March 27 – 28, 2013
I - Definitions
Interregional Planning Process: The process whereby an Interregional Projects are is
evaluated and approved for construction by the participating Interregional Planning
Regions in accordance with the procedures identified in Attachment O.
Interregional Planning Region(s): A Commission approved planning region as
identified in Section VIII of Attachment O.
Interregional Project: A Network Upgrades that hasve been approved through the
Interregional Planning Process in accordance with Attachment O.
Interruption: A reduction in non-firm transmission service due to economic reasons
pursuant to Section 14.7.
ITP Upgrades: Those upgrades identified and analyzed through the integrated
transmission planning process described in Section III of Attachment O.
Effective Date: 7/26/2010 - Docket #: ER10-1960
Page 2
Receiving Party: The entity receiving the capacity and energy transmitted by the Transmission
Provider to Point(s) of Delivery.
Region-wide Annual Transmission Revenue Requirement: The sum of the Base Plan
Region-wide Aannual Ttransmission Rrevenue Rrequirements and each Balanced
Portfolio Region-wide Annual Transmission Revenue Requirement, as set forth in
Attachment H, Table 2.
Region-wide Charge: Regional component of the charge assessed by the Transmission
Provider in accordance with Schedule 11 to recover the Region-wide Annual
Transmission Revenue Requirement.
Region-wide Load Ratio Share: Ratio of a Network Customer's or Transmission
Owner’s Resident Load in the SPP Region to the total load in the SPP Region computed
in accordance with Section II.B to Schedule 11 of this Tariff and calculated on a calendar
year basis, for the prior calendar year.
Region-wide Rate: Regional component of the rate per kW of Reserved Capacity
assessed by the Transmission Provider in accordance with Schedule 11 to recover the
Region-wide Annual Transmission Revenue Requirement.
Regional State Committee: A voluntary organization comprised of one designated
commissioner from each participating state regulatory commission having jurisdiction
over an SPP Member, established to collectively provide both direction and input on all
matters pertinent to the participation of the Members in SPP pursuant to the SPP Bylaws.
Regional Transmission Group (RTG): A voluntary organization of Transmission
Owners, transmission users and other entities approved by the Commission to efficiently
coordinate transmission planning (and expansion), operation and use on a regional (and
interregional) basis.
Page 3
Reported Load: A Market Participant's actual value of energy withdrawn from the
Transmission System at a Settlement Location, including Transmission System losses,
adjusted as described under Section 5.1 of Attachment AE to be consistent with
Settlement Area Net Load.
Reserved Capacity: The maximum amount of capacity and energy that the
Transmission Provider agrees to transmit for the Transmission Customer over the
Transmission Provider's Transmission System between the Point(s) of Receipt and the
Point(s) of Delivery under Part II of the Tariff. Reserved Capacity shall be expressed in
terms of whole megawatts on a sixty (60) minute interval (commencing on the clock
hour) basis.
Resident Load: The load specified in Section 41 of the Tariff.
Revenue Requirements and Rates File (RRR File): A file posted on the SPP website
as a reference to: (i) Annual Transmission Revenue Requirements (ATRRs) for Network
Integration Transmission Service, as referenced in Attachment H to this Tariff; (ii) Base
Plan ATRR allocation; (iii) allocation factors for Base Plan funded projects; (iv) notes on
the calculation of Base Plan ATRR amounts on a Region-wide and Zonal basis; (v)
ATRR reallocation for Balanced Portfolio projects; (vi) the calculation of Base Plan
Point-To-Point Transmission Service rates on a Region-wide and Zonal basis in
accordance with Schedule 11; and (vii) the rates for Point-To-Point Transmission Service
as referenced in Attachment T in accordance with Schedules 7 and 8.
Page 4
ATTACHMENT H
ANNUAL TRANSMISSION REVENUE REQUIREMENT FOR NETWORK
INTEGRATION TRANSMISSION SERVICE
[BGF1]SECTION I: General Requirements
1. The Zonal Annual Transmission Revenue Requirement (“Zonal ATRR”) for each
Transmission Owner for purposes of determining the charges under Schedule 9, Network
Integration Transmission Service, is specified in Column (3) Section I, of Table 1. The
Base Plan Zonal Annual Transmission Revenue Requirement (“Base Plan Zonal ATRR”)
used to determine the zonal charges under Schedule 11 for Base Plan Upgrades issued a
Notification to Construct (“NTC”) prior to June 19, 2010 is specified in Column (4)
Section I, of Table 1. The Base Plan Zonal ATRR used to determine the zonal charges
under Schedule 11 for Base Plan Upgrades issued an NTC on or after June 19, 2010 is
specified in Column (5) of Section I, Table 1. The amount of Zonal ATRR and Base
Plan Zonal ATRR that is included in Columns (3), (4), and (5) and reallocated to the
Region-wide Annual Transmission Revenue Requirement (“Region-wide ATRR”), in
accordance with Attachment J, is specified in Column (6) of Section I, Table 1.
Table 1
(See Note A below)
(1)
Zone
(2) (3)
Zonal ATRR
(4)
Base Plan
Zonal ATRR
(5)
Base
Plan
Zonal
ATRR
after
June 19,
2010
(6)
ATRR
Reallocated
to Balanced
Portfolio
Region-wide
ATRR
1 American Electric Power –West
(Total)
See Att. H tab,
posted RRR File See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
1a
American Electric Power
(Public Service Company of
Oklahoma and Southwestern
Electric Power Company) See
Section II.3
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
1b East Texas Electric Cooperative, $2,733,879
Page 5
Inc.
1c Tex-La Electric Cooperative of
Texas, Inc. $588,874
1d Deep East Texas Electric
Cooperative, Inc. $428,131
1e Oklahoma Municipal Power
Authority $748,647
1f
AEP West Transmission
Companies (AEP Oklahoma
Transmission Company, Inc and
AEP Southwestern Transmission
Company, Inc)
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
2 Reserved for Future Use
3 City Utilities of Springfield,
Missouri $8,651,509
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
4 Empire District Electric
Company $14,075,000
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
5 Grand River Dam Authority See Att. H tab,
posted RRR File See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
6 Kansas City Power & Light
Company
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
7 Oklahoma Gas and Electric
(Total)
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
7a Oklahoma Gas and Electric
See Att. H tab,
posted RRR File See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
7b Oklahoma Municipal Power
Authority $368,501
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
8 Midwest Energy, Inc. See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
9 KCP&L Greater Missouri
Operations Company
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
10 Southwestern Power
Administration $14,267,100
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
11 Southwestern Public Service
Company (Total)
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
See Att. H
tab, posted
See Att. H tab,
posted RRR
Page 6
File RRR File File
11a Southwestern Public Service
Company
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
11b Tri-County Electric Cooperative See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
12 Sunflower Electric Power
Corporation $14,484,045
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
13 Western Farmers Electric
Cooperative $20,719,639
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
14 Westar Energy, Inc. (Kansas
Gas & Electric and Westar
Energy) (Total)
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
14a Westar Energy, Inc. (Kansas Gas
& Electric and Westar Energy) See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
14b Prairie Wind Transmission, LLC. See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
14c Kansas Power Pool See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
15 Mid-Kansas Electric Company
(Total)
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
15a Mid-Kansas Electric Company $15,142,441
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
15b ITC Great Plains
See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
15c Prairie Wind Transmission, LLC. See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
16 Lincoln Electric System See Att. H tab,
posted RRR File See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
17 Nebraska Public Power District See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
File
See Att. H
tab, posted
RRR File
See Att. H tab,
posted RRR
File
18 Omaha Public Power District See Att. H tab,
posted RRR File
See Att. H tab,
posted RRR
See Att. H
tab, posted
See Att. H tab,
posted RRR
Page 7
File
RRR File
File
19 Total
See Att. H tab,
posted RRR
File
Note A: The Annual Transmission Revenue Requirements (“ATRR”) for each Zone are set forth
in the Revenue Requirements and Rates File (“RRR File”) posted on the SPP website.
2. For the purposes of determining the Region-wide Charges under Schedule 11, the
Region-wide ATRR, as shown in Line 65 of Section I, Table 2, shall be the sum of (i) the
Base Plan Region-wide Annual Transmission Revenue Requirements (“Base Plan
Region-wide ATRR”), and (ii) the total Balanced Portfolio Region-wide Annual
Transmission Revenue Requirements (“Balanced Portfolio Region-wide ATRR”) and
(iii) the approved Interregional Project Region-wide Annual Transmission Revenue
Requirements (“Interregional Project Region-wide ATRR”)..
Table 2
(See Note B below)
1 Base Plan Region-wide ATRR (NTC prior to June 19, 2010) See Att. H tab, posted
RRR File
2 Base Plan Region-wide ATRR (NTC on or after June 19, 2010) See Att. H tab, posted
RRR File
3 Total Balanced Portfolio Region-wide ATRR Total, Column (6),
Section I, Table 1
See Att. H tab, posted
RRR File
4 Balanced Portfolio Region-wide ATRR See Att. H tab, posted
RRR File
5 SPP Interregional PlanningProject Region-wWide ATRR See Att. H tab, posted
RRR File
6 Other Interregional Planning Region ATRR See Att. H tab posted
RRR File
567 Region-wide ATRR (Sum of Lines 1through 6 + Line 2 + Line 3 +
Line 4 + Line 5)
See Att. H tab, posted
RRR File
Note B: The Region-wide ATRRs are set forth in the RRR File posted on the SPP website.
Page 8
3. A Transmission Owner’s revenue requirement referenced or stated in this Attachment H
shall not be changed absent a filing with the Commission, accompanied by all necessary
cost support, unless such Transmission Owner utilizes Commission-approved formula
rate processes contained in this Tariff to determine its revenue requirements.
4. A new or amended revenue requirement referenced or stated in this Attachment H shall
not be filed with the Commission by the Transmission Provider unless such revenue
requirements have been provided by or for a Transmission Owner. Such revenue
requirements shall have been accepted or approved by the applicable regulatory or
governing authority except in the event of a simultaneous filing with the Commission by
the Transmission Owner and Transmission Provider.
5. If a Transmission Owner has a Commission-approved formula rate, the successful
completion of its approved annual formula rate update procedures shall constitute
regulatory acceptance sufficient to authorize the Transmission Provider to update that
Transmission Owner’s revenue requirements posted on the SPP website. Such update by
the Transmission Provider shall not require a filing with the Commission, provided that
the Transmission Owner posts the populated formula rate for public review and comment
as required under the applicable protocols and/or procedures contained in this Attachment
H. The Transmission Provider shall follow any special procedures related to updating a
Transmission Owner’s revenue requirements as outlined in Section II of this Attachment.
6. The Transmission Provider shall allocate the accepted or approved revenue requirement
associated with a Base Plan Upgrade, in accordance with Attachment J to this Tariff, to
the Base Plan Region-wide ATRRs in Section I, Table 2 above and to the appropriate
Base Plan Zonal ATRR in Column (4) or (5) in Section I, Table 1.
SECTION II: Transmission Owner-Specific Requirements
1. Westar Energy, Inc.
For Westar Energy, Inc., the ATRR for purposes of the Network Integration
Transmission Service shall be calculated using the rate formula set forth in Attachment H
Addendum 3 of this Tariff (“Westar Formula Rate”). The results of the formula
calculation shall be posted on the Transmission Provider’s website and in an accessible
location on Westar’s OASIS website by October 15 of each calendar year and shall be
Page 9
effective on January 1 of the following year. The Zonal Revenue Requirement to be used
for the Westar zone, Column (3) of Section I, Table 1 of this Attachment H, shall be
calculated by taking the SPP Zonal Revenue Requirement as identified on the Projected
Net Revenue Requirements page, line 10 of the Westar Formula Rate; less the sum of the
current year’s revenue requirement associated with all transmission facilities owned by
Westar in other pricing zones when such revenue requirements are included in the
revenue requirements specified in the Westar Formula Rate on the Projected Net Revenue
Requirements page, line 10; plus the previous calendar year’s total firm Point-To-Point
transmission revenue allocated to Westar under Attachment L provided such Point-to-
Point transmission revenue is deducted from Westar’s ATRR under Section 34.1 of this
Tariff.
The revenue requirements for Base Plan Funded projects owned by Westar shall be the
amount contained on the Projected Net Revenue Requirements page, line 9 of the Westar
Formula Rate.
The revenue requirements for Balanced Portfolio funded projects owned by Westar shall
be the amount contained on the Projected Net Revenue Requirements page, line 9a of the
Westar Formula Rate. Following its posting of the updated revenue requirements by
October 15 of each calendar year as discussed above, the Transmission Provider shall
immediately update the various Base Plan and Balanced Portfolio funded costs and
allocations contained in the Tariff and file them with the Commission no later than
December 15 of each calendar year with a requested effective date of January 1.
2. Southwestern Public Service Company
For Southwestern Public Service Company (“SPS”), the Existing Zonal ATRR for Zone
11 in Column (3), of Section I, Table 1 of this Attachment H shall be calculated using:
(1) the formula rate as specified in Attachment O – SPS of the Xcel Energy Operating
Companies Joint Open Access Transmission Tariff (“Xcel Energy OATT”), (2) will be
equal to the Current Year Revenue Requirement with True Up as specified on line 6,
page 1 of Attachment O – SPS of the Xcel Energy OATT, (3) and subject to the
Page 10
Implementation Procedures in Appendix 1 of Attachment O – SPS of the Xcel Energy
OATT. The results of the formula calculation shall be posted on the SPP website and in
an accessible location on SPS’s OASIS website by October 1 of each calendar year and
shall be effective on January 1 of the following year. The Existing Zonal ATRR for Zone
11, in Column (3), Section I, Table 1 of this Attachment H shall not be subject to
adjustment pursuant to section 34.1 for the previous calendar year’s total firm Point-to-
Point transmission revenue allocated to SPS under Attachment L when determining the
monthly zonal Demand Charge for Zone 11.
3. American Electric Power
The American Electric Power ATRR for purposes of the Network Integrated
Transmission Service shall be (i) calculated using the formula rate set forth in Addendum
1 to this Attachment H, (ii) posted on the SPP website by May 25 of each calendar year,
and (iii) effective on July 1 of such year.
4. Nebraska Public Power District: Formula Rate Implementation Protocols and
Formula Rate Template
Section 1. Annual Updates
The Formula Rate Template set forth in Addendum 7 and these Formula Rate
Implementation Protocols (“Protocols”) together comprise the filed rate by
Southwest Power Pool (“SPP”) for calculating Nebraska Public Power District’s
(“NPPD”) Zonal ATRR for Transmission Service under the SPP OATT. NPPD
must follow the instructions specified in the Formula Rate Template to calculate
the rates for NITS, the rates for Schedule 1 Service, the rates for Point-to-Point
services over facilities in SPP Zone 17 and the ATRR for Base Plan Upgrades and
other network upgrades.
The initial Zonal ATRR and the initial rates will be in effect for a partial year
from the effective date of NPPD’s transfer of operational control of its
transmission facilities to SPP until December 31, 2009. The Formula Rate shall
Page 11
be recalculated each year with the resulting rates to become effective on and after
January 1 of each year through December 31 of such year. The resulting rates
implemented each January 1 will be subject to review and true-up as further
provided in the Protocols.
No later than September 1, 2009 and September 1 of each year thereafter, NPPD,
upon initial approval of NPPD’s Board of Directors, shall determine its projected
Zonal ATRR, and resulting rates for the following calendar year, in accordance
with the Protocols and the Formula Rate Template of Addendum 7 of this
Attachment H. NPPD will post such determination on its website and will send
such determination to SPP for posting on the publicly accessible portion of the
SPP website. Contemporaneously, NPPD shall provide notice to its wholesale
customers and interested parties of its projected Zonal ATRR and resultant rates,
including all inputs in sufficient detail to identify the components of NPPD’s
Zonal ATRR. Commencing September 1 of each year, such parties may submit
written questions and answers will be provided by NPPD within ten (10) business
days. NPPD will post on the NPPD website responses to any such inquiries and
information regarding frequently asked questions. No later than September 30 of
each year, NPPD will hold a meeting with wholesale customers and interested
parties to explain the formula rate input projections and provide an opportunity
for oral and written comments. Written comments must be submitted no later
than October 30. No later than December 15 of each year, NPPD will provide to
SPP for posting on the publicly accessible portion of the SPP website NPPD’s
final Zonal ATRR and resulting rates to become effective January 1 of the
following calendar year.
Section 2. True-Up Adjustments
On or before June 1, 2010 and on or before June 1 of each year thereafter, NPPD
will calculate the True-Up Adjustment with supporting data inputs in sufficient
detail to identify the projected and actual cost of each element of NPPD’s Zonal
Page 12
ATRR and actual revenues. NPPD will reflect the True-Up Adjustment as a line
item in its Zonal ATRR noticed on September 1, 2010 and in the ATRR noticed
on September 1 of each year thereafter. The True-Up Adjustment will be
determined in the following manner:
(1) Actual transmission revenues associated with transactions included in the Divisor
of the Formula Rate Template for the previous calendar year will be compared to
the Actual Zonal ATRR. The Actual Zonal ATRR shall be calculated in
accordance with the Formula Rate Template and actual data for the previous year.
For each year, NPPD will complete and make available for review, on its website,
actual data as recorded in accordance with FERC’s Uniform System of Accounts,
including an affidavit of the Chief Financial Officer of NPPD attesting to the
accuracy of the cost and revenue data set forth therein. In addition, NPPD shall
provide an explanation of any change in accounting policies and practices that
NPPD employed during the preceding twelve-month period that affect
transmission accounts or the allocation of common costs to transmission. Actual
costs incurred during the applicable calendar year will be compared to actual
revenues recovered during such period to determine whether there was any under-
recovery or over-recovery. The True-Up Adjustment and related calculations
shall be posted no later than June 1 on NPPD’s website and on the publicly
accessible portion of the SPP website. Commencing June 1 of each year, any
interested party may submit written questions and answers will be provided by
NPPD within ten (10) business days. NPPD will post on the NPPD website
responses to any such inquiries and information regarding frequently asked
questions. Written comments must be submitted no later than July 15 of each
year. NPPD will post on the NPPD website the final True-Up Adjustment no
later than September 1 of each year.
(2) Interest on any over-recovery or under-recovery of the Zonal ATRR shall be
based on the interest rate equal to NPPD’s actual short-term debt costs, capped at
the applicable interest rate set forth in 18 C.F.R. §35.19a of the Commission’s
Page 13
regulations. The interest rate equal to NPPD’s actual short-term debt costs shall
be calculated in accordance with Worksheet K to the Formula Rate Template.
(3) The Zonal ATRR for transmission services for the following year shall be the sum
of the projected Zonal ATRR for the following year and a True-Up Adjustment
for the previous year, including interest as explained above.
Section 3. NPPD Formula Rate Blank Template
NPPD’s Formula Rate Template to be used for calculating the Zonal ATRR and
NITS rates, Schedule 1 rates, Point-to-Point rates, ATRR Base Plan Upgrade and
other network upgrades set forth in Attachment H – Addendum 7. The provisions
of such Formula Rate Template are not subject to changes except through a filing
under Section 205 or 206 of the Federal Power Act.
5. Omaha Public Power District
For the Omaha Public Power District (“OPPD”), the ATRR for purposes of the Network
Integration Transmission Service, Base Plan Upgrades, Scheduling, System Control, and
Dispatch Service, and for the determination of Point-to-Point rates shall be calculated
using the Formula-based Rate Template set forth in Attachment H - Addendum 8 of this
Tariff. The ATRR and rates calculated pursuant to the formula-based rate template shall
be revised annually. The results of such annual calculations shall be posted on OPPD’s
OASIS website and in a publically accessible location on the Transmission Provider’s
website by May 15 of each calendar year. Written comments will be accepted until June
15 and the annual revenue requirement and rates shall become effective from August 1 of
such year through July 31 of the following year. Initially, the rates calculated pursuant to
the formula-based rate template and incorporated into this SPP OATT will be in place
through July 31, 2009.
6. Lincoln Electric System
Page 14
For the Lincoln Electric System (“LES”), ATRR of Network Integration Transmission
Service, Base Plan Upgrades, Scheduling, System Control and Dispatch Service, and for
the determination of Point-to-Point rates shall be calculated using the forward-looking
Formula Rate Template set forth in Attachment H - Addendum 6 of this Tariff. The
ATRR and rates calculated pursuant to the forward-looking formula rate template shall be
revised annually. The results of such annual calculations shall be posted on LES’ public
page of the SPP OASIS website by October 31 of each calendar year. Customers will be
given an opportunity to ask questions by November 30 and to seek information regarding
the calculations. Written comments will be accepted until November 15. The annual
revenue requirement and rates derived therefrom shall become effective from January 1
through December 31 of the following year. Initially, the rates calculated pursuant to the
historical formula based rate template and incorporated into this SPP OATT will be in
place through December 31, 2012. Rates calculated pursuant to the forward-looking
formula rate template and incorporated into this SPP OATT will be in place through
December 31, 2013.
1. Actual Net Revenue Requirement (calculated in accordance with page 1, line
7 of Attachment H, Addendum 6) for the previous year shall be compared to
the projections made for that same year (True-Up Year) to determine any
excess or shortfall in the projected revenue requirement that was used for
billing purposes in the True-Up Year. In addition, actual divisor loads (based
on a 12 CP average) will be compared to projected divisor loads (page 1, line
10 of Attachment H, Addendum 6) and the difference multiplied by the rate
actually billed to determine any excess or shortfall in collection due to
volume. The sum of the excess or shortfall due to the actual versus projected
revenue requirement and the excess or shortfall due to volume shall constitute
the True-up Adjustment. The True-up Adjustment and related calculations
shall be posted to the Transmission Provider’s public webpage of the SPP
OASIS website no later than June 1. LES will provide an explanation of the
True-up Adjustment in response to customer
Page 15
inquiries and will post on its public page of the SPP OASIS website
information regarding frequently asked questions.
2. Interest on any over recovery of the net revenue requirement or any over
recovery due to volume changes shall be determined based on the
Commission’s regulation at 18 C.F.R. § 35.19a. Interest on any under
recovery of the net revenue requirement or any under recovery due to volume
changes shall be determined using the interest rate equal to LES’s actual
short-term debt costs capped at the applicable FERC refund interest rate. In
either case, the interest payable shall be calculated using an average interest
rate for the twenty-four (24) months during which the over or under recovery
in the revenue requirement or volume changes exists. The interest rate to be
applied to the over or under recovery amounts will be determined using the
average rate for the nineteen (19) months preceding August of the current
year. The interest amount (page 1, line 6e of Attachment H, Addendum 6) will
be included in the projected costs made available October 31.
3. The Net Revenue Requirement for transmission services for the following
year shall be the sum of the projected revenue requirement for the following
year (page 1, line 1 of Attachment H, Addendum 6) minus Total Transmission
Revenue Credits (page 1, line 5 of Attachment H, Addendum 6), plus or
minus the True-up Adjustment (page 1, line 6c minus line 6d plus line 6e of
Attachment H, Addendum 6) from the previous year, if any, including
interest, as explained.
4. Example True-up of 2012 Net Revenue Requirement
• 2012 Projected Net Revenue Requirement was $20,000,000, projected load
was 500,000 kW and the resulting rate was $40.0000 per kW-year.
• 2012 Actual Net Revenue Requirement was $19,500,000, actual 12 CP load
was 475,000 kW resulting in a rate of $41.0526 per kW-year.
5. True-Up Calculation
• There is an over recovery of the net revenue requirement equal to $500,000
($20,000,00 - $19,500,000 = $500,000).
Page 16
• There is a $1,000,000 shortfall in revenue collection due to volume
((500,000 kW – 475,000 kW) x $40.00 per kW-year = $1,000,000).
• The total True-up Adjustment amount would be a net under recovery of
$500,000 ($500,000 (over recovery) - $1,000,000 (shortfall) = -$500,000
(shortfall))
6. Interest on True-up Adjustment
Interest will be applied to the True-up Adjustment for the twenty-four (24)
months during which the under recovery existed, from January 1, 2012
through December 31, 2013. The interest rate applied will be Lincoln Electric
System’s average monthly short-term debt interest rate, capped at the FERC
refund interest rate, in effect January 1, 2012 through July 31, 2013.
7. Informational Posting
Lincoln Electric System will post all information relating to the True-up
Adjustment no later than June 1, 2014, affording interested parties at least
seven months to review these calculations in advance of the related January 1
rate change. LES will provide an explanation of the True-up Adjustment
amounts in response to customer inquiries and will post on the OASIS
information regarding frequently asked questions. This True-up Adjustment
with interest will be included in the projected 2015 net revenue requirement
and estimated rates will be made available to customers by October 31, 2014.
New rates will take effect on January 1, 2015.
ATTACHMENT J
RECOVERY OF COSTS ASSOCIATED WITH NEW FACILITIES
Effective Date: 7/26/2010 - Docket #: ER10-1960
I. Direct Assignment Facilities
Where a System Impact and/or Facilities Study indicates the need to construct
Direct Assignment Facilities to accommodate a request for Transmission Service, the
Transmission Customer shall be charged the full cost of such Direct Assignment
Facilities. Such costs shall be specified in a Service Agreement.
Effective Date: 7/26/2010 - Docket #: ER10-1960
II. Network Upgrades
Where applicable the costs of completed Network Upgrades shall be allocated as
specified in Sections III, IV, and V and VI of this Attachment. The revenue requirements
of approved Interregional Projects, Base Plan Upgrades, and approved Balanced
Portfolios, and approved Interregional Projects will be recovered through Schedule 11,
subject to filing such rate or revenue requirements with the Commission, and where
applicable Directly Assigned Upgrade Costs. These costs may be recovered in whole or
in part through the Base Plan Zonal Charge, Base Plan Region-wide Charge, and/or a
direct assignment charge. The cost allocable to each of these charges shall be determined
in accordance with Section III of this Attachment. The revenue requirements for other
Network Upgrades may be recovered by Transmission Owners through Schedules 7, 8,
and 9 subject to their filing such rate or revenue requirements with the Commission.
Effective Date: 7/26/2010 - Docket #: ER10-1960
III. Base Plan Upgrades
A single Base Plan Upgrade is comprised of any upgrade or group of upgrades
required to be made to a single transmission circuit, where a transmission circuit is
comprised of all load carrying elements between circuit breakers or the comparable
switching devices. A load carrying element within a Base Plan Upgrade that is connected
at two different voltage levels (e.g. a 345kV/138kV transformer) shall, for the purposes
of this Attachment J, be considered to have a nominal operating voltage of its lower
voltage level (excluding any tertiary windings) and its costs shall be allocated in
accordance with the rules governing the lower voltage level in this Attachment J. A
waiver may be requested to use a transformer’s higher voltage level instead of the lower
voltage level for the purposes of cost allocation under this Attachment J based on the
anticipated utilization of the transformer. Such request must be made in writing with
supporting analysis and submitted to the Transmission Provider not later than one
hundred eighty (180) days following the inclusion of the transformer in an approved SPP
Transmission Expansion Plan. Any waiver request submitted shall be evaluated based
upon the following general factors, including but not limited to: (i) whether the power
flows through the transformer predominately are from the lower voltage to the higher
voltage; (ii) whether the transformer is not necessary for the support of, or does not
substantially benefit, the lower voltage system in the host zone to which it is connected.
The Transmission Provider shall make a recommendation to accept or deny the waiver,
on a non-discriminatory basis, to the Markets and Operations Policy Committee. The
Markets and Operations Policy Committee will consider the waiver request and the
Transmission Provider’s recommendation, and will provide its own recommendation
(along with the Transmission Provider’s recommendation) regarding such waiver to the
SPP Board of Directors. Barring unusual circumstances, the recommendation to approve
or reject such waiver request will be submitted to the SPP Board of Directors within one
hundred twenty (120) days following the receipt of the waiver request.
A. Allocation of Base Plan Upgrade Costs Eligible for Cost Allocation
1. If the cost of a Base Plan Upgrade is less than or equal to
$100,000, the annual transmission revenue requirement associated
with such Base Plan Upgrade shall be allocated to the Base Plan
Zonal Annual Transmission Revenue Requirement of the Zone in
which the Base Plan Upgrade is located.
2. If a) the Base Plan Upgrade is included in and constructed pursuant
to the SPP Transmission Expansion Plan in order to ensure the
reliability of the Transmission System or is an approved high
priority upgrade, and the cost for that upgrade is not allocable
under Section III.A.1; or b) the Base Plan Upgrade cost eligible for
cost allocation under Section III.B.1 is not associated with a new
or changed Designated Resource for a wind generation plant, then:
i. X% of the annual transmission revenue requirement
associated with such Base Plan Upgrade costs eligible for
cost allocation shall be allocated to the Base Plan Region-
wide Annual Transmission Revenue Requirement and
recovered through the Region-wide Charge, where X shall
be set as follows:
a. For all Base Plan Upgrades issued a Notification to
Construct prior to June 19, 2010 or whose nominal
operating voltage level is less than 300 kV but
greater than 100 kV, X shall be 33%.
b. For all other Base Plan Upgrades whose nominal
operating voltage level is greater than or equal to
300 kV, X shall be 100%.
c. For all other Base Plan Upgrades whose nominal
operating voltage level is less than or equal to 100
kV, X shall be 0%.
ii. (100-X)% of the annual transmission revenue requirement
associated with such Base Plan Upgrade costs eligible for
cost allocation shall be allocated to the Base Plan Zonal
Annual Transmission Revenue Requirement and recovered
through the Base Plan Zonal Charge as follows:
a. For Base Plan Upgrades issued a Notification to
Construct prior to June 19, 2010, this portion of the
annual transmission revenue requirement for Base
Plan Upgrade costs eligible for cost allocation shall
be allocated to the Base Plan Zonal Annual
Transmission Revenue Requirement of specific
Zones based on the Zones’ share of the incremental
positive MW-mile benefits as computed in Section
4 of Attachment S to this Tariff. Each Zone with a
benefit of at least 10 MW-miles from a given Base
Plan Upgrade shall be allocated a portion of the
Base Plan Zonal Annual Transmission Revenue
Requirement for such upgrade based on its
incremental positive MW-mile benefit divided by
the sum of the incremental positive MW-mile
benefits for all of those Zones with a benefit of at
least 10 MW-miles from the upgrade, provided that
such allocation represents an engineering and
construction cost of at least $100,000.
b. For all other Base Plan Upgrades, this portion of the
annual transmission revenue requirement for Base
Plan Upgrade costs eligible for cost allocation shall
be allocated solely to the Base Plan Zonal Annual
Transmission Revenue Requirement of the Zone in
which the Base Plan Upgrade is located.
3. If the Base Plan Upgrade cost eligible for cost allocation under
Section III.B.1 of Attachment J is a) associated with a new or
changed Designated Resource that is a wind generation plant and
b) the Base Plan Upgrade is located within the same zone as the
Transmission Customer’s Point of Delivery, then:
i. X% of the annual transmission revenue requirement
associated with the portion of the Base Plan Upgrade costs
eligible for cost allocation shall be allocated to the Base
Plan Region-wide Annual Transmission Revenue
Requirement and recovered through the Base Plan Region-
wide Charge, where X shall be set as follows:
a. For Base Plan Upgrades issued a Notification to
Construct prior to June 19, 2010 or whose nominal
operating voltage level is less than 300 kV and
greater than 100 kV, X shall be 33%.
b. For all other Base Plan Upgrades whose nominal
operating voltage level is greater than or equal to
300 kV, X shall be 100%.
c. For all other Base Plan Upgrades whose nominal
operating voltage level is less than or equal to 100
kV, X shall be 0%.
ii. (100-X)% of the annual transmission revenue requirement
associated with the portion of the Base Plan Upgrade costs
eligible for cost allocation shall be allocated to the Base
Plan Zonal Annual Transmission Revenue Requirement
and recovered through the Base Plan Zonal Charge as
follows:
a. For Base Plan Upgrades issued a Notification to
Construct prior to June 19, 2010, this portion of the
annual transmission revenue requirement for Base
Plan Upgrade costs eligible for cost allocation shall
be allocated to the Base Plan Zonal Annual
Transmission Revenue Requirement of specific
Zones based on the Zones’ share of the incremental
positive MW-mile benefits as computed in Section
4 of Attachment S to this Tariff. Each Zone with a
benefit of at least 10 MW-miles from a given Base
Plan Upgrade shall be allocated a portion of the
Base Plan Zonal Annual Transmission Revenue
Requirement for such upgrade based on its
incremental positive MW-mile benefit divided by
the sum of the incremental positive MW-mile
benefits for all of those Zones with a benefit of at
least 10 MW-miles from the upgrade, provided that
such allocation represents an engineering and
construction cost of at least $100,000.
b. For all other Base Plan Upgrades, this portion of the
annual transmission revenue requirement for Base
Plan Upgrade costs eligible for cost allocation shall
be allocated to the Base Plan Zonal Annual
Transmission Revenue Requirement of the Zone in
which the Base Plan Upgrade is located.
4. If the Base Plan Upgrade cost eligible for cost allocation under
Section III.B.1 of Attachment J is a) associated with a new or
changed Designated Resource that is a wind generation plant and
b) the Base Plan Upgrade is located within a zone(s) other than the
Transmission Customer’s Point of Delivery, then:
i. Y% of the annual transmission revenue requirement
associated with the Base Plan Upgrade costs eligible for
cost allocation shall be allocated to the Base Plan Region-
wide Annual Transmission Revenue Requirement and
recovered through the Base Plan Region-wide Charge,
where Y shall be set as follows:
a. For Base Plan Upgrades issued a Notification to
Construct prior to June 19, 2010 or whose nominal
operating voltage level is less than 300 kV, Y shall
be 67%.
b. For all other Base Plan Upgrades Y shall be 100%.
ii. (100-Y)% of the annual transmission revenue requirement
associated with the Base Plan Upgrade costs eligible for
cost allocation shall be directly assigned to the
Transmission Customer.
B. Conditions for Classifying Service Upgrade Costs Associated with
Designated Resources As Base Plan Upgrade Costs Eligible for Cost
Allocation
1. Except as provided in Section III.A.1 and subject to the limits and
rules set forth in Subsections d and f below, the costs of Service
Upgrades associated with new or changed Designated Resources
shall be classified as Base Plan Upgrade costs eligible for cost
allocation if the conditions in the following Subsections a and b are
met, and if the condition in Subsection c is met as applicable.
a. The Transmission Customer’s commitment to the
Designated Resource has a duration of at least five years
b. In the first year the Designated Resource is planned to be
used by the Transmission Customer, the accredited capacity
of the Transmission Customer’s existing Designated
Resources plus the lesser of: (a) the planned maximum net
dependable capacity applicable to the Transmission
Customer or (b) the requested capacity; shall not exceed
125% of the Transmission Customer’s projected system
peak responsibility determined pursuant to SPP Criteria 2.
c. If the Designated Resource is a wind generation plant, then
the sum of: (1) the requested capacity and (2) the
transmission capacity reserved for the Transmission
Customer’s existing Designated Resources that are wind
generation plants shall not exceed 20% of the Transmission
Customer’s projected system peak responsibility as
determined pursuant to SPP Criteria 2 in the first year the
Designated Resource is planned to be used by the
Transmission Customer.
d. Safe Harbor Cost Limit for Eligibility of the Costs of Base
Plan Upgrade for Cost Allocation
i. For Base Plan Upgrades that cost over $100,000,
the aggregate cost of such upgrades assigned to
each individual transmission service request that is
less than or equal to the Safe Harbor Cost Limit of
$180,000 / MW times the requested capacity is
eligible for cost allocation in accordance with:
1) Section III.A.2 for a new or changed
Designated Resource other than a wind
generation plant; or
2) Sections III.A.3 and 4 for a new or changed
Designated Resource that is a wind
generation plant.
ii. Any costs that exceed the Safe Harbor Cost Limit
for a transmission service request shall be directly
assigned to the Transmission Customer unless a
waiver of the Safe Harbor Cost Limit is granted
pursuant to Section III.C.
e. Base Plan Upgrade costs eligible for allocation as a result
of the granting of a waiver shall be allocated in accordance
with Sections III.A.2, III.A.3, or III.A.4, as applicable.
f. For each Transmission Service Request, the amount of
Base Plan Upgrade costs eligible for cost allocation shall be
pro-rated among all Base Plan Upgrades required to grant
the Transmission Service Request based upon each
Upgrade’s cost that is allocated to the Transmission Service
Request in accordance with Attachment Z1.
2. The Transmission Customer must provide the Transmission
Provider the information that the Transmission Provider deems
necessary to verify that the new or changed Designated Resource
meets conditions in Section III.B.1.a,b and c above.
3. If an upgrade for a new or changed Designated Resource meets the
requirements set forth in Section III.B.1.a, b, and c above, the costs
up to the $180,000/MW Safe Harbor Cost Limit will be classified
as Base Plan Upgrade costs eligible for cost allocation.
4. If the conditions set forth in Section III.B.1.a, b, and c above are
not met, and the Transmission Customer does not secure a waiver
of the relevant condition(s), the costs of the upgrades will be
directly assigned to the Transmission Customer. If the costs of
upgrades associated with a new or changed Designated Resource
exceeds the Safe Harbor Cost Limit and the Transmission
Customer does not secure a waiver of that limit, the costs of the
upgrades in excess of the limit will be directly assigned to the
Transmission Customer. The Transmission Customer shall receive
transmission revenue credits in accordance with Attachment Z2 to
this Tariff for any such directly assigned costs.
C. Waiver of Conditions for Classifying Service Upgrade Costs
Associated with Designated Resources As Base Plan Upgrade Costs
Eligible for Cost Allocation
1. Waiver Process
If one or more of the conditions in Section III.B.1.a, b, c are not
met or if the Base Plan Upgrade cost exceeds the Safe Harbor Cost Limit,
the Transmission Customer may seek a waiver from the Transmission
Provider in order that the costs of any Service Upgrade(s) that otherwise
would be directly assigned to the Transmission Customer may be
classified in whole or in part as Base Plan Upgrade costs eligible for cost
allocation.
To obtain a waiver for the conditions set forth in Section III.B.1.a,
b, c, the Transmission Customer must submit a request for a waiver to the
Transmission Provider simultaneous with its request for long-term
transmission service, submitted in accordance with Attachment Z1 to this
Tariff, for the new or changed Designated Resource.
Aggregate Facilities Studies performed by the Transmission
Provider as part of the Aggregate Transmission Service Study procedure,
which is described in Attachment Z1, will determine whether the costs for
Service Upgrades associated with a new or changed Designated Resource
might exceed the Safe Harbor Cost Limit. If the Transmission Provider
determines that the costs for Service Upgrades associated with a new or
changed Designated Resource might exceed the Safe Harbor Cost Limit,
the Transmission Provider shall notify the affected Transmission
Customer when the Transmission Provider posts the associated Facilities
Study. The affected Transmission Customer may request a waiver
regarding the costs in excess of the Safe Harbor Cost Limit within 15 days
of such notice form the Transmission Provider.
Following the receipt of a request for a waiver, the Transmission
Provider will review the request and make a determination on a non-
discriminatory basis of whether a waiver should be granted based upon
consideration of the factors described in Section III.C.2. of this
Attachment. The Transmission Customer requesting the waiver shall be
responsible for the reasonable costs of any studies that the Transmission
Provider performs in making its determination. The Transmission
Provider will provide a report and recommendation to the Markets and
Operations Policy Committee for each requested waiver. The Markets and
Operations Policy Committee will consider the waiver request and the
Transmission Provider’s report and recommendation, and will provide its
own recommendation (along with the Transmission Provider’s report and
recommendation) regarding each requested waiver to the SPP Board of
Directors. Barring unusual circumstances, a valid waiver request will be
reviewed and submitted to the SPP Board of Directors within 120 days
following the receipt of the waiver request.
2. Factors to be Considered in Evaluating Waiver Requests
Any waiver request submitted by a Transmission Customer
pursuant to Section III.C.1. of this Attachment shall be evaluated based
upon the following general factors, including but not limited to:
i. There are insufficient competitive resource alternatives for one or
more Transmission Customers.
ii. In the event that the aggregate costs of a Service Upgrade
associated with a new or changed Designated Resource exceed the
Safe Harbor Cost Limit, (i) those costs up to the level of the Safe
Harbor Cost Limit shall be classified as Base Plan Upgrade costs
eligible for cost allocation, and (ii) those costs that exceed the Safe
Harbor Cost Limit may be classified in whole or in part as Base
Plan Upgrade costs eligible for cost allocation taking into account
the extent to which the duration of the Transmission Customer’s
commitment to the new or changed Designated Resource exceeds
the five-year commitment period set forth in paragraph III.B.1.
above.
iii. The five-year commitment period for the new or changed
Designated Resource may be waived if: (i) the associated Service
Upgrade costs are significantly less than the Safe Harbor Cost
Limit; or (ii) the associated Service Upgrades provide benefits to
other Transmission Customers that would offset in less than five
years any costs allocated to them as a result of the upgrade being
classified as a Base Plan Upgrade.
iv. If a request for a waiver is received by the Transmission Provider
based upon other circumstances, such waiver request shall also be
considered pursuant to the waiver process described in Section
III.C.1. of this Attachment.
If the costs of the Service Upgrade(s) required for a new or
changed Designated Resource are not eligible for classification as Base
Plan Upgrade costs, the Transmission Customer may nevertheless request
the construction of such upgrades. In such event, the costs of such
upgrades shall be allocated in accordance with Attachment Z1 to this
Tariff.
D. Review of Base Plan Allocation Methodology
1. The Transmission Provider shall review the reasonableness of the
regional allocation methodology and factors (X% and Y%) and the
zonal allocation methodology at least once every three years in
accordance with this Section III.D. The Transmission Provider
and/or the Regional State Committee may initiate such review at
any time. Any change in the regional allocation methodology and
factors or the zonal allocation methodology shall be filed with the
Commission.
2. For each review conducted in accordance with Section III.D.1, the
Transmission Provider shall determine the cost allocation impacts
of the Base Plan Upgrades with Notifications to Construct issued
after June 19, 2010 to each pricing Zone within the SPP Region.
The Transmission Provider in collaboration with the Regional
State Committee shall determine the cost allocation impacts
utilizing the analysis specified in Section III.e of Attachment O
and the results produced by the analytical methods defined
pursuant to Section III.D.4(i) of this Attachment J.
3. The Transmission Provider shall review the results of the cost
allocation analysis with SPP’s Regional Tariff Working Group,
Markets and Operations Policy Committee, and the Regional State
Committee. The Transmission Provider shall publish the results of
the cost allocation impact analysis and any corresponding
presentations on the SPP website.
4. The Transmission Provider shall request the Regional State
Committee provide its recommendations, if any, to adjust or
change the costs allocated under this Attachment J if the results of
the analysis show an imbalanced cost allocation in one or more
Zones.
i) One year prior to each three-year planning cycle (starting in
2013) the Markets and Operations Policy Committee and
Regional State Committee will define the analytical
methods to be used to report under this Section III.D and
suggest adjustments to the Regional State Committee and
Board of Directors on any imbalanced zonal cost allocation
in the SPP footprint; and
ii) Starting in 2015 and at any time thereafter, any member
company that feels that it has an imbalanced cost allocation
may request relief through the Markets and Operations
Policy Committee. The Markets and Operations Policy
Committee recommendation, if any, will be forwarded with
the request for relief to the Regional State Committee and
Board of Directors for review.
5. In accordance with the SPP Bylaws, the SPP Board of Directors
will initiate the appropriate actions, including any necessary filings
with the Commission, consistent with the Regional State
Committee recommendations.
Effective Date: 7/26/2010 - Docket #: ER10-2244
IV. Approved Balanced Portfolios
One hundred percent (100%) of the annual transmission revenue
requirement for an approved Balanced Portfolio shall be recovered through the
Region-wide Charge.
A. Reallocation of Zonal Revenue Requirements for Deficient Zone(s)
For an approved Balanced Portfolio, the balance may have been
achieved by transferring a portion of the Base Plan Zonal Annual
Transmission Revenue Requirement and/or the Zonal Annual
Transmission Revenue Requirement (“Reallocated Revenue
Requirements”) from the deficient Zone(s) to the Balanced Portfolio
Region-wide Annual Transmission Revenue Requirement in accordance
with Section IV.4.c of Attachment O to this Tariff.
1. Implementation of Reallocated Revenue Requirements
The initial reallocation of the Reallocated Revenue
Requirements from the deficient Zone(s) to the Balanced Portfolio
Region-wide Annual Transmission Revenue Requirement shall
occur when at least 10% of the estimated levelized annual
transmission revenue requirements for the approved Balanced
Portfolio has been included in rates under the Tariff (the “Trigger
Date”).
On the Trigger Date and on the anniversary of the Trigger
Date in each of the subsequent four years, 20% of the Reallocated
Revenue Requirements required to balance the portfolio for the
deficient Zone(s), as estimated in accordance with Section IV.4.c
of Attachment O to this Tariff, shall be reallocated to the Balanced
Portfolio Region-wide Annual Transmission Revenue
Requirement. However, if all the upgrades in the approved
Balanced Portfolio are completed and included in rates under the
Tariff and the actual costs of any third party impacts identified
under Section IV.3.c of Attachment O are determined prior to the
fourth anniversary of the Trigger Date, the remaining Reallocated
Revenue Requirements shall be reallocated and the true-up
specified in Section IV.A.2 of this Attachment shall be performed.
The reallocation of the Reallocated Revenue Requirements
shall be from the Base Plan Zonal Annual Transmission Revenue
Requirement of the deficient Zone(s) first, then, if necessary, from
the Zonal Annual Transmission Revenue Requirement of the
deficient Zone(s).
2. Final Reallocation of Reallocated Revenue Requirements and
True-up
Upon the completion and inclusion in rates under the Tariff
of all of the upgrades that are part of the approved Balanced
Portfolio and the determination of the actual cost of any third party
impacts attributable to the Balanced Portfolio under Section IV.3.c
of Attachment O, the final amount of costs to be reallocated from
the Reallocated Revenue Requirements for the deficient Zone(s) to
the Balanced Portfolio Region-wide Annual Transmission Revenue
Requirement to balance the approved Balanced Portfolio shall be
trued-up based on the applicable fixed charge rate and actual costs.
The final reallocation shall be performed using the same benefits
estimated at the time the Balanced Portfolio was approved.
Notwithstanding the foregoing, if the ten-year net present value of
levelized annual transmission revenue requirements based on
actual costs and third party impact costs under Section IV.3.c of
Attachment O exceeds the ten-year net present value of estimated
benefits for the entire approved Balanced Portfolio, then the
reallocation for each Zone shall be set at a level that equates the
benefit to cost ratio in each Zone to the trued-up benefit to cost
ratio for the approved Balanced Portfolio.
B. Reconfiguration of an Approved Balanced Portfolio
1. Conditions Under Which an Approved Balanced Portfolio may
be Reconfigured
Under certain conditions, the Transmission Provider shall
review an approved Balanced Portfolio for unintended
consequences and may recommend reconfiguring a previously
approved Balanced Portfolio. Conditions that would initiate such
review include but are not limited to:
i. Cancellation of an upgrade that is part of an approved
Balanced Portfolio;
ii. Unanticipated decreases in benefits or increases in the costs
of upgrades that are part of an approved Balanced Portfolio
or increases in the costs of third party impacts under
Section IV.3.c of Attachment O; and
iii. Significant unanticipated changes in the transmission
system.
2. Factors to be Considered in Determining Whether a Balanced
Portfolio Should be Reconfigured
Reconfiguration of a Balanced Portfolio shall be evaluated
based upon the following general factors, including but not limited
to, the impact of the reconfiguration on:
i. Meeting the conditions for a Balanced Portfolio specified in
Section IV.3.e of Attachment O to this Tariff;
ii. The number of deficient Zones as defined in Section IV.4.a
of Attachment O to this Tariff;
iii. The amount of Reallocated Revenue Requirements that
needs to be transferred from the deficient Zone(s) to the
Balanced Portfolio Region-wide Annual Transmission
Revenue Requirement in order to balance the reconfigured
portfolio; and
iv. The increase in the overall cost of the reconfigured
Balanced Portfolio, if upgrades are added to the portfolio.
3. Reallocation of Reallocated Revenue Requirements
If a reconfigured portfolio is to be balanced by transferring
a portion of the Reallocated Revenue Requirements from the
deficient Zone(s) to the Balanced Portfolio Region-wide Annual
Transmission Revenue Requirement, the reallocation of the
revenue requirements specified in Section IV.A of this Attachment
shall be adjusted based on the costs and benefits of the proposed
reconfigured Balanced Portfolio as approved.
4. Recommendation and Approval of a Reconfigured Balanced
Portfolio
Based on the analysis performed in accordance with
Sections IV.B.1 through IV.B.3 of this Attachment, the
Transmission Provider shall provide a report and make a
recommendation in regard to reconfiguration of the Balanced
Portfolio to the Markets and Operations Policy Committee. The
Markets and Operations Policy Committee shall consider the
Transmission Provider’s report and recommendation, and shall
provide its own recommendation (along with the Transmission
Provider’s report and recommendation) to the SPP Board of
Directors. Based upon these recommendations, the SPP Board of
Directors shall take action regarding reconfiguration of the
Balanced Portfolio.
Effective Date: 7/26/2010 - Docket #: ER10-1960
V. Other Network Upgrades
A. Sponsored Upgrades
The Directly Assigned Upgrade Cost of a Sponsored Upgrade shall
be borne voluntarily by the Project Sponsor. The Project Sponsor shall
execute an Agreement for Sponsored Upgrade in which it agrees to bear
these Directly Assigned Upgrade Costs. In the Agreement, the Project
Sponsor shall elect to pay for the Sponsored Upgrade by (1) a lump sum
payment or (2) periodic charges calculated in accordance with
Commission policy (both hereafter referred to as “Project Sponsor’s
Payment”). Such periodic charges shall be paid on a monthly basis over a
twenty year period unless a different frequency and/or shorter term is
established in the Agreement for Sponsored Upgrade. The present value of
the Project Sponsor’s Payment shall equal the present value of the annual
revenue requirements of the Sponsored Upgrade over a twenty year plant
life. The annual revenue requirements of the Sponsored Upgrade shall be
calculated by multiplying the levelized fixed charge rate of the
Transmission Owner, based on full depreciation over a 20 year plant life
and including operating and maintenance expenses and any applicable tax
consequences, by the nondepreciated actual cost of the Sponsored
Upgrade.
The Transmission Provider shall file the Agreement initially
utilizing good faith estimates of the construction costs for the assigned
upgrade. Upon completion of the Sponsored Upgrade, the Transmission
Provider shall true up the Directly Assigned Upgrade Costs to the actual
construction costs as appropriate and calculate the Project Sponsor’s
Payment.
In addition, the Directly Assigned Upgrade Cost of the Sponsored
Upgrade shall be reduced as provided in Section VII of this Attachment J
and by any revenue credits granted to a Transmission Owner for the use of
the Sponsored Upgrade.
The Project Sponsor shall receive transmission revenue credits in
accordance with Attachment Z2.
B. Service Upgrades
The cost of a Service Upgrade shall be allocated in accordance
with Attachment Z1 to this Tariff. The Transmission Customer shall
receive transmission revenue credits in accordance with Attachment Z2.
C. Generation Interconnection Related Network Upgrades
The cost of a generation interconnection related Network Upgrade
shall be allocated in accordance with Attachment V to this Tariff. The
Interconnection Customer shall receive transmission revenue credits in
accordance with Attachment Z2.
D. Zonal Reliability Upgrades
1. The cost of Zonal Reliability Upgrades (i) included in the
2005 SPP Transmission Expansion Plan and (ii) placed in
service prior to January 1, 2008 shall be allocated in
accordance with Section III to this Attachment.
2. The cost of all other Zonal Reliability Upgrades shall be
includable in the applicable Zonal Annual Transmission
Revenue Requirement.
Effective Date: 7/26/2010 - Docket #: ER10-1960
VI. Interregional Projects as Network Upgrades
The annual transmission revenue requirements associated with the costs allocated
to the SPP Region for the approved Interregional Projects shall be added toincluded in the
Region-wide Annual Transmission Revenue Requirement and recovered through the
Region-wide Charge.
Reserved
Effective Date: 7/26/2010 - Docket #: ER10-1960
VII. Treatment of Upgrades that Permit Deferral or Displacement of Network
Upgrades
A. Deferred Upgrade
In the case of a Base Plan Upgrade, an upgrade that is part of an approved
Balanced Portfolio, a Zonal Reliability Upgrade, or a Service Upgrade that may
be deferred (“Deferred Upgrade”) as a result of a proposed Network Upgrade, the
achievable Accredited Revenue Requirements shall be equal to the time value of
the affected Transmission Owner’s(s’) revenue requirement(s) for the Deferred
Upgrade over the period of the deferral, calculated as follows:
1. A Transmission Owner’s annual revenue requirement for a
Deferred Upgrade shall be determined using the same method as is
used by the Transmission Owner to calculate its revenue
requirement for transmission facilities for other purposes, but
applying that method to the projected incremental investment in
the Deferred Upgrade.
2. The time value of the deferral shall be calculated by discounting to
present value the accredited annual revenue requirements for each
individual year in the deferral period and summing the resulting
values. For each individual year in the deferral period, the time
value of the deferral will be determined by discounting the annual
revenue requirement for that year first from January 1 of that year
and then from December 31 of that year, summing the two
resulting values, and dividing by two. For any partial year
encompassed by the deferral period, the time value of the deferral
shall be calculated in the same manner as indicated in the
immediately preceding sentence, except that the resulting value
will be pro-rated based on the number of months in the partial year
divided by 12.
B. Displaced Upgrade
In the case of a Base Plan Upgrade, an upgrade that is part of an approved
Balanced Portfolio, a Zonal Reliability Upgrade, or a Service Upgrade that may
be displaced (“Displaced Upgrade”) as a result of a proposed Network Upgrade,
the achievable Accredited Revenue Requirements shall be equal to the time value
of the affected Transmission Owner’s(s’) revenue requirement(s) for the
Displaced Upgrade over the expected service life of the facility that is displaced.
The methodology for calculating the Accredited Revenue Requirements shall be
the same as set forth in Section VII.A. of this Attachment, except that the
expected service life of the facility shall be substituted for the deferral period in
all instances.
C. Application of Accredited Revenue Requirements
The Transmission Provider shall calculate the Accredited Revenue
Requirements that are achievable due to a Deferred Upgrade or Displaced
Upgrade. The Accredited Revenue Requirements shall be based on the estimated
project costs for the approved upgrade which is deferred or displaced.
1. If a proposed Network Upgrade defers or displaces the need for a
Base Plan Upgrade associated with a new or changed Designated
Resources for which there are Directly Assigned Upgrade Costs,
the Accredited Revenue Requirements related to Base Plan
Upgrade charges shall only include the costs that are allocated to
the Base Plan Zonal Annual Transmission Revenue Requirement
and the Base Plan Region-wide Annual Transmission Revenue
Requirement.
2. If a proposed Network Upgrade defers or displaces the need for an
upgrade that is part of an approved Balanced Portfolio, the
Accredited Revenue Requirements related to Balanced Portfolio
charges shall only include the costs that are allocated to the
Balanced Portfolio Region-wide Annual Transmission Revenue
Requirement.
3. If a proposed Network Upgrade defers or displaces the need for a
Zonal Reliability Upgrade, the Accredited Revenue Requirements
related to Zonal Reliability Upgrade charges shall only include the
costs that are assigned to the Zonal Annual Transmission Revenue
Requirement.
4. If a proposed Network Upgrade defers or displaces the need for a
Service Upgrade required to provide Long-Term Firm Point-to-
Point Transmission Service, the Accredited Revenue Requirements
related to the transmission service charges shall only include the
expected increase in revenue that can be distributed through
Section II.C of Attachment L to this Tariff, for service under
Schedule 7, as a result of displacement or deferral of the Service
Upgrade.
D. Assignment and Recovery of Accredited Revenue Requirements
1. For a proposed Network Upgrade, other than an upgrade included in a
Balanced Portfolio, that results in a Deferred Upgrade or Displaced
Upgrade:
i. The entity responsible for paying the cost of the Network Upgrade
shall be responsible for any positive difference between the present
value of the total costs for its upgrade and the present value of the
Accredited Revenue Requirements.
ii. The Accredited Revenue Requirements of the deferred or displaced
upgrades shall be recovered through charges specified in:
a. Section III.A of this Attachment for deferred or displaced
Base Plan Upgrades;
b. Section IV of this Attachment for deferred or displaced
upgrades associated with a Balanced Portfolio;
c. Section V.D of this Attachment for deferred or displaced
Zonal Reliability Upgrades; and
d. Section V.B. of this Attachment for deferred or displaced
Service Upgrades.
iii. The calculations for determining the Accredited Revenue
Requirements shall be filed with the Commission by the
Transmission Provider prior to the imposition of any charges or
credits hereunder.
2. The costs of the upgrades included in an approved Balanced Portfolio that
result in a Deferred Upgrade or Displaced Upgrade shall be included in the
Balanced Portfolio Region-wide Annual Transmission Revenue
Requirement and shall be recovered through the Region-wide Charge.
i. The costs of a Network Upgrade that is deferred or displaced by
the upgrades included in an approved Balanced Portfolio shall not
be recovered through the original recovery mechanism for such
upgrade.
ii. In the evaluation of the benefits of the Balanced Portfolio as
specified in Section IV.3.d of Attachment O to this Tariff, the
Accredited Revenue Requirements associated with the deferred or
displaced Base Plan Upgrade(s), Zonal Reliability Upgrade(s) and
Service Upgrade(s) shall be treated as benefits to the Zones to
which those Accredited Revenue Requirements are distributed or
would have been otherwise assigned or recovered as specified in:
a. Section III.A of this Attachment for deferred or displaced
Base Plan Upgrades;
b. Section V.D of this Attachment for deferred or displaced
Zonal Reliability Upgrades; and
c. Section II.C of Attachment L for service under Schedule 7
for deferred or displaced Service Upgrades.
Effective Date: 7/26/2010 - Docket #: ER10-1960
VIII. Uncompleted Network Upgrades
The costs of Network Upgrades that are not completed through no fault of the
Transmission Owner charged with construction of the upgrades shall be handled
as follows:
If a proposed Network Upgrade was accepted and approved by the Transmission
Provider, the Transmission Provider shall develop a mechanism to recover such
costs and distribute such revenue on a case by case basis. Such recovery and
distribution mechanism shall be filed with the Commission. The Transmission
Owner(s) that incurred the costs shall be reimbursed for those costs by the
Transmission Provider. These costs shall include, but are not limited to: the costs
associated with attempting to obtain all necessary approvals for the project, study
costs, and any construction costs.
Effective Date: 7/26/2010 - Docket #: ER10-1960
Schedule 1 to Attachment J
Agreement For Sponsored Upgrade
This Agreement For Sponsored Upgrade ("Agreement") is entered into this _______ day
of _____________________, ________, by and between _____________________________
("Project Sponsor"), and Southwest Power Pool, Inc. ("Transmission Provider") on behalf of
itself and the designated Transmission Owner(s). The Project Sponsor and Transmission
Provider shall be referred to as "Parties."
WHEREAS, the Transmission Provider administers an Open Access Transmission Tariff
(“Tariff”) to provide Transmission Service within the Southwest Power Pool and acts as agent
for the Transmission Owners in providing service under the Tariff; and
WHEREAS, the Sponsored Upgrade identified in the Specifications attached hereto has
been endorsed by the Markets and Operations Policy Committee and the Board of Directors of
the Transmission Provider; and
WHEREAS, the Project Sponsor has agreed to bear the cost of the Sponsored Upgrade;
and
WHEREAS, the Parties intend that capitalized terms used herein shall have the same
meaning as in the Tariff;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein,
the Parties agree as follows:
1.0 This Agreement shall become effective on the later of (l) the date of the execution
of this Agreement by both Parties or (2) such other date as it is permitted to become effective by
the Commission. (“Effective Date”)
2.0 This Agreement shall terminate on the later of the following events: (1) the
Project Sponsor has fulfilled its obligation to make Project Sponsor’s Payment pursuant to
section 3.0 or (2) the Transmission Provider has fulfilled its obligation to pay the Project Sponsor
all revenue credits pursuant to section 5.0, recognizing that no obligation to pay revenue credits
will remain after the Sponsored Upgrade has been permanently removed from service.
3.0 Project Sponsor agrees to pay the Directly Assigned Upgrade Costs of the
Sponsored Upgrade pursuant to Attachment J of the Tariff. Project Sponsor has elected to pay for
the Sponsored Upgrade in one of the following manners, as indicated in the Specifications
attached hereto: (1) by a lump sum payment or (2) a periodic charge, both hereinafter referred to
as “Project Sponsor’s Payment.” The Parties recognize that the initial Project Sponsor’s
Payment will be based on an estimate of the Directly Assigned Upgrade Costs. While
Transmission Provider represents that the Project Sponsor’s Payment is based on a good faith
estimate of the Directly Assigned Upgrade Costs, such estimate shall not be binding, and the
Project Sponsor shall compensate the Transmission Provider and designated Transmission
Owner(s) for all costs incurred pursuant to the provisions of the Tariff. Promptly after the
Sponsored Upgrade is placed in service, Transmission Provider shall adjust the Project Sponsor’s
Payment to reflect all such costs incurred, as appropriate.
4.0 Project Sponsor shall maintain a Letter of Credit in the amount specified in this
Agreement or such other form of security acceptable to Transmission Provider pursuant to
Attachment X of the Tariff until such time as the Project Sponsor has fulfilled its obligation to
make Project Sponsor’s Payment pursuant to section 3.0.
5.0 Transmission Provider agrees to provide Project Sponsor with revenue credits
pursuant to Attachment Z2 of the Tariff. Revenue credits shall be the exclusive compensation of
the Project Sponsor under this Agreement.
6.0 Transmission Provider agrees to arrange for the construction of the Sponsored
Upgrade in accordance with the Tariff, the SPP Membership Agreement and the construction
timeline specified herein.
7.0 Any notice or request made to or by either Party regarding this Agreement shall
be made to the representative of the other Party as indicated below.
Southwest Power Pool, Inc.:
_____________________________________
201 Worthen Drive
Little Rock, AR 72223-4936
Project Sponsor:
_____________________________________
_____________________________________
_____________________________________
8.0 The Tariff is incorporated herein and made a part hereof for all purposes.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their respective authorized officials.
Southwest Power Pool, Inc.:
By:______________________ _____________________ _____________________
Name Title Date
Project Sponsor:
By:______________________ _____________________ _____________________
Name Title Date
Specifications
1.0 Designated Transmission Owner(s): _________________________________________
2.0 Description of Sponsored Upgrade: __________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
3.0 Project Sponsor’s Payment:* The Project Sponsor shall elect to pay the Directly Assigned
Upgrade Grade Costs of the Sponsored Upgrade by (1) a lump sum payment or (2) a
periodic charge as indicated below:
_____ Lump Sum Payment:_________________________________________________
Payment Due Date:_____________________________________________
_____Periodic Charge:_____________________________________________________
_______________________________________________________________________
_______________________________________________________________________
* The Project Sponsor’s Payment specified herein shall initially be based on a good faith
estimate of Directly Assigned Upgrade Costs. The Project Sponsor’s Payment shall be
subject to adjustment and true up after the Sponsored Upgrade is placed in service.
4.0 Project Timeline (Milestones): ______________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
5.0 Letter of Credit:__________________________________________________________
Effective Date: 1/15
Attachment L
III. Distribution Oof Revenues From Base Plan Zonal Charges and Region-wide Charges and Interregional Projects
Revenues associated with the Base Plan Zonal Annual Transmission Revenue
Requirements and with the Region-wide Annual Transmission Revenue Requirement, specified
in Attachment H and collected by the Transmission Provider under Schedule 11 of the Tariff,
shall be distributed to Transmission Owners owning Base Plan Upgrades,or upgrades within
approved Balanced Portfolios, or an approved Interregional Project in proportion to their
respective annual transmission revenue requirements for Base Plan Upgradesand, upgrades
within approved Balanced Portfolios and approved Interregional Projects.
Revenues associated with approved Interregional Projects receivedcollected by the
Transmission Provider under Schedule 11of the Tariff to compensate an Interregional Planning
Region in accordance with the interregional cost allocation pursuant to the Addendum(s) to
Attachment O will be distributed by the Transmission Provider to the applicable Interregional
Planning Region.
Revenues associated with approved Interregional Projects received by the Transmission
Provider from an Interregional Planning Region in accordance with the interregional cost
allocation pursuant to the Addendum(s) to Attachment O will be distributed by the Transmission
Provider to the owning Transmission Owner(s) in proportion to their respective annual
transmission revenue requirements for the approved Interregional Project.
ATTACHMENT O
TRANSMISSION PLANNING PROCESS
Effective Date: 7/26/2010 - Docket #: ER10-1960
I. Overview of Planning Process
The Transmission Provider’s transmission planning process is an open process. New and
proposed transmission facilities can come from several different areas of the Tariff.
These areas are: 1) transmission service requests; 2) Generation Interconnection Service
requests; 3) the integrated transmission planning process (ITP Upgrades); 4) the Balanced
Portfolio process; 5) the high priority study process (high priority upgrades); and 6)
requests for Sponsored Upgrades; and 7) the evaluation of proposed Interregional
Projects. Figure 1 illustrates the planning processes within SPP and how these result in a
comprehensive regional plan called the SPP Transmission Expansion Plan (STEP).
Each of these sources of potential upgrades has its own evaluation and approval process.
Transmission Service requests are evaluated in accordance with Attachment Z1.
Generator interconnection requests are assessed under the provisions of Attachment V.
In addition, the process for adding new delivery points is described in Attachment AQ.
The integrated transmission planning process and other study processes for Sponsored
Upgrades, Balanced Portfolios, and high priority upgrades, and proposed Interregional
Projects are described in this Attachment O.
The results from all these sources are collected and reported in the annual SPP
Transmission Expansion Plan which gives a twenty (20) year projection of transmission
changes in the SPP Region. The SPP Transmission Expansion Plan, as endorsed by the
Markets and Operations Policy Committee, is presented to the SPP Board of Directors
once a year for their review and approval, as required in accordance with Section V of
this Attachment O. The SPP Board of Directors may modify upgrades that are part of
approved Balanced Portfolios in accordance with Section IV of Attachment J, ITP
Upgrades, or high priority upgrades in the SPP Transmission Expansion Plan throughout
the year in accordance with Section V of this Attachment O. Projects associated with
transmission service requests, and Generation Interconnection Service requests, and
Sponsored Upgrades and Interregional Projects may also be added throughout the year as
Service Agreements and interconnection agreements are executed. described in this
Attachment O.
SPP’s long range transmission planning is conducted over a three year planning cycle as
shown in Figure 2. A 20-Year Assessment is conducted during the first half of this three
year cycle. A 10-Year Assessment is conducted in the second half of the three year
cycle. The Near Term Assessment is conducted each year and generally looks over the
next five to seven years. Each of these assessments and the approval process is set forth
in this Attachment O.
Upgrades from
Transmission
Requests
(Sections 19, 32,
and Attachment
Z1) (Section III.7)
Upgrades from GI
Procedures
(Attachment V)
(Section III.7)
Policy, Reliability
and Economic
Inputs
(Section III.6)
Perform Integrated
Transmission
Planning Study
and Analysis
(Sections III.3 –
III.5)
Integrated Transmission
Planning Studies (20-Year/
10-Year/Near Term) and
Other Studies Endorsed by
Stakeholder Working Groups
Integrated
Transmission Planning
Upgrades Approved or
Endorsed by SPP BOD
Annual SPP
Transmission
Expansion Plan
(Section V)
Sponsored
Upgrades
(Section IV)
Reviewed by
Transmission
Provider
“Out of Cycle”
Reviewed by
Stakeholder
Working Groups
Endorsed by
BOD
Financial
Commitment by
Requesting
Entity
Figure 1 - SPP Transmission Planning
Initial Planning
Model
Include Appropriate
Planning Upgrades in
Models (Sections 19, 32,
Attachment Z1,
Attachment V)
Issue Notifications
To Construct if
applicable
(Section VI)
Reviewed by
Stakeholder
Working Groups
Other Studies
(High Priority Studies,
Balanced Portfolio)
(Section IV)
[BGF2]
Year 1 Year 2 Year 3
Figure 2 - SPP Integrated Transmission Planning Process 3-Year Cycle
10
-Ye
ar
Ne
ar
Te
rm2
0-Y
ea
r
S = Scenarios
A = Analysis
R = Results
Jan - Jun Jul - Dec Jan - JunJan - Jun Jul - DecJul - Dec
RAS
S A R S A R S A R
S A RNote: At the End of Year
Three Repeat ITP Process
from Beginning
Effective Date: 7/26/2010 - Docket #: ER10-1960
II. Roles and Responsibilities
References to the “stakeholder working group” is a generic term that references those working
group(s) as defined in the SPP Bylaws, Sections 3 through 6 that are charged with the
transmission planning process. The current names of all the working groups shall be posted on
the SPP website.
1. Division of Responsibilities
a) The rights, powers and obligations for planning are set forth in the SPP
Membership Agreement in (i) Article 2.0 for the Transmission Provider
and (ii) Article 3.0 for the Members. The division of responsibility
between the Transmission Provider and the Members is set forth in the
SPP Criteria and in this Attachment O. The SPP Membership Agreement,
the SPP Criteria and the Tariff shall be posted on the SPP website.
b) The Transmission Provider shall be responsible for developing the list of
projects in accordance with the stakeholder process set forth in Sections II,
III and V of this Attachment O, and including inter-regional coordination
set forth in Section VIII of this Attachment O.
c) The Transmission Provider shall perform transmission planning studies to
assess the reliability and economic operation of the Transmission System
in accordance with Section III of this Attachment O.
d) As inputs to the planning process, the Transmission Provider shall include
and maintain requirements to serve existing commitments for long-term
transmission service and interconnection service in accordance with
Section III.7 of this Attachment O and any applicable roll-over rights as
set out in Section 2.2 of the Tariff. It shall also take into account all
previously approved projects.
e) The Transmission Provider shall review, and include as appropriate, all
local area upgrades to meet local area reliability criteria as proposed by the
Transmission Owners including those plans developed by Transmission
Owners that have their own FERC approved local planning process to
ensure coordination of the projects set forth in such plans with the
potential solutions developed in the regional planning process.
f) The Transmission Provider shall review and include, as appropriate, all
reasonable expected demand resource, transmission, or generation options
identified by stakeholders.
g) The Transmission Provider shall describe the details regarding expansion
planning methodology, criteria, assumptions and data in the SPP
Transmission Expansion Planning Manual which shall be posted on the
SPP website.
h) In accordance with its NERC reporting requirements, the Transmission
Provider shall publish an annual reliability report that shall include a list of
the following:
i) Regional upgrades required to maintain reliability in accordance
with the NERC Reliability Standards and SPP Criteria;
ii) Zonal upgrades required to maintain reliability in accordance with
more stringent individual Transmission Owner planning criteria;
and
iii) Inter-regional uUpgrades developed with neighboring
Transmission Providers to meet inter-regional needs, including
results from the coordinated system plans.
2) Stakeholder Working Groups
a) The purpose of the stakeholder working groups is to provide technical
advice, assistance and oversight to the Transmission Provider in all
aspects of the regional, sub-regional and local planning process, including
but not limited to:
i) Review and development of coordinated planning among the
Transmission Provider and the Transmission Owners including
accepted Network Upgrades developed by those Transmission
Owners that have their own FERC approved local planning process
to meet local area reliability criteria;
ii) Review and development of regional planning criteria;
iii) Review and development of Available Transfer Capability related
calculation criteria as specified in Attachment C to the Tariff;
iv) Review and development of transmission rating criteria;
v) Compliance with NERC Reliability Standards concerning
transmission assessment, transfer capability and ratings of
transmission facilities; and
vi) Review and Development of the list of transmission needs driven in
whole or in part by Public Policy Requirements for which
transmission solutions will be evaluated.; and
vii) Review of Interregional Projects in accordance with Section IV.6
(e) of this Attachment O.
b) All the stakeholder working group representation shall be appointed and
chaired in accordance with Article 3.0 of the SPP Bylaws. All meetings of
the stakeholder working groups are open to all entities.
c) Voting in the various stakeholder working groups shall conform to Article
3.9 of the SPP Bylaws.
d) The data, information, and technical support necessary for the
Transmission Provider to perform studies as required by the planning
process and to develop the regional reliability projects are provided by the
Transmission Owners, Transmission Customers and Generation
Interconnection Customers and other entities. This process is described in
Section VII of this Attachment O.
e) Stakeholder working groups that work with the Transmission Provider on
transmission planning shall meet at least quarterly and additional
meetings, web conferences and teleconferences shall be scheduled as
needed. Teleconference capability will be made available for stakeholder
working group meetings. Notice of meetings of the stakeholder working
groups shall be posted on the SPP website and distributed via email
distribution lists. Meeting agendas and minutes shall be posted on the SPP
website.
3) Participation by State Regulators
In accordance with the SPP Bylaws, any regulatory agency having utility rates or
services jurisdiction over a Member may participate fully in all SPP planning
activities.
4) Adherence to Regional Planning Criteria
i) The regional planning criteria are comprised of the NERC Reliability
Standards and SPP Criteria.
ii) The regional planning criteria may change from time to time based upon
the then current process for changing reliability criteria.
iii) The individual Transmission Owners shall be obligated under the NERC
Reliability Standards and SPP Criteria to resolve reliability violations and
compliance needs identified by the Transmission Provider or by the
individual Transmission Owners themselves in accordance with these
standards and criteria. The SPP Criteria shall be posted on the SPP
website.
5) Use of Local Planning Criteria
i) Individual Transmission Owners within the SPP Region may develop
company-specific planning criteria that, at a minimum, conform to the
NERC Reliability Standards and SPP Criteria.
ii) For each annual planning cycle, Transmission Owners, including those
Transmission Owners that have their own FERC approved local planning
process, must provide to the Transmission Provider at least once a year, by
April 1st, their company-specific planning criteria in order for the need for
Zonal Reliability Upgrades to be assessed and included in the SPP
Transmission Expansion Plan.
iii) Transmission Owner planning criteria and assumptions may be modified
at any time provided that, if the planning criteria are made more stringent,
the increased requirements will not apply retroactively to studies
previously completed or studies already underway by the Transmission
Provider. Access to the individual Transmission Owner’s planning criteria
shall be made available via an electronic link on the SPP website.
iv) The individual planning criteria of each Transmission Owner, including
those Transmission Owners that have their own FERC approved local
planning process, shall be the basis for determining whether a reliability
violation exists for which a need for a new Zonal Reliability Upgrade
should be considered.
v) The Transmission Owner shall apply its local planning criteria comparably
to all load in its service territory.
vi) Transmission Owners’ company-specific planning criteria and local
planning processes must provide for: (a) the identification of transmission
needs driven in whole or in part by Public Policy Requirements; and (b)
the evaluation of potential solutions to meet those needs.
Effective Date: 7/26/2010 - Docket #: ER11-3509
III. The Integrated Transmission Planning Process
The ITP process is an iterative three-year process that includes 20-Year, 10-Year and Near Term
Assessments. The 20-Year Assessment identifies the transmission projects, generally above
300 kV, and provides a grid flexible enough to provide benefits to the region across multiple
scenarios. The 10-Year Assessment focuses on facilities 100 kV and above to meet the system
needs over a ten-year horizon. The Near Term Assessment is performed annually and assesses
the system upgrades, at all applicable voltage levels, required in the near term planning horizon.
1) Commencement of the Process
At the beginning of each calendar year the Transmission Provider shall notify
stakeholders as to which part(s) of the integrated transmission planning cycle will
take place during that year and the approximate timing of activities required to
develop the SPP Transmission Expansion Plan. Notice of commencement of the
process shall be posted on the SPP website and distributed via email distribution
lists.
2) Transmission Planning Forums
The transmission planning forums include planning summits and sub-regional
planning meetings and these are conducted as follows:
a) Planning Summits
i) The purpose of the planning summits is for the Transmission
Provider and the stakeholders to share current SPP transmission
network issues, develop the study scopes, provide solution
alternatives and review study findings. These summits also
provide an open forum where all stakeholders have an opportunity
to provide advice and recommendations to the Transmission
Provider to aid in the development of the SPP Transmission
Expansion Plan.
ii) The planning summits shall be open to all entities.
iii) The Transmission Provider shall chair and facilitate the planning
summits.
iv) Planning summits shall be held at least semi-annually, including
sub-regional breakout sessions of the SPP Region. Teleconference
capability will be made available for planning summits. Planning
summit web conferences shall be held as needed.
v) Notice of the planning summits and web conferences shall be
posted on the SPP website and distributed via email distribution
lists.
b) Sub-regional Planning Meetings
i) The Transmission Provider shall define sub-regions from time to
time to address local area planning issues.
ii) The purpose of the sub-regional planning meetings is to identify
unresolved local stakeholder issues and transmission solutions at a
more granular level. The sub-regional planning meetings shall
provide stakeholders with local needs the opportunity to provide
advice and recommendations to the Transmission Provider and to
the Transmission Owners. The sub-regional planning meetings
shall provide a forum to review local planning criteria and needs as
specified in Section II of this Attachment O.
iii) The sub-regional planning meetings shall be open to all entities.
iv) The Transmission Provider shall facilitate the sub-regional
planning meetings.
v) A planning meeting shall be held at least annually for each
individual sub-region.
vi) The sub-regional planning meetings shall be held in conjunction
with the stakeholder working group meetings. Teleconference
capability will be made available for sub-regional planning
meetings. Sub-regional planning web conferences shall be held as
needed.
vii) Notice of the sub-regional planning meetings, teleconferences and
web conferences shall be posted on the SPP website and
distributed via email distribution lists.
3) Preparation of the 20-Year Assessment
a) The Transmission Provider shall perform a 20-Year Assessment once
every three years. The timing of this assessment shall generally be in the
first half of each three-year cycle.
b) The 20-Year Assessment shall review the system for a twenty-year
planning horizon and address, at a minimum, facilities 300 kV and above
needed in year 20. This assessment is not intended to review each
consecutive year in the planning horizon. The Transmission Provider
shall work with stakeholders to identify the appropriate year(s) to study in
developing the assessment study scope.
c) The 20-Year Assessment shall assess the cost effectiveness of proposed
solutions over a forty-year time horizon.
d) The Transmission Provider shall develop the assessment study scope with
input from the stakeholders. The study scope shall take into consideration
the input requirements described in Section III.6.
e) The assessment study scope shall specify the methodology, criteria,
assumptions, and data to be used.
f) The Transmission Provider, in consultation with the stakeholder working
groups, shall finalize the assessment study scope.
g) The assessment study scope shall be posted on the SPP website and will
be included in the published annual SPP Transmission Expansion Plan
report. The assessment study scope shall include an explanation of which
transmission needs driven by Public Policy Requirements will be
evaluated for potential solutions in the local and regional transmission
planning process, as well as an explanation of why other suggested
transmission needs will not be evaluated.
h) In accordance with the assessment study scope, the Transmission Provider
shall analyze potential solutions following the process set forth in Section
III.8.
4) Preparation of the 10-Year Assessment
a) The Transmission Provider shall perform a 10-Year Assessment once
every three years as part of the three year planning cycle. The timing of
this assessment shall generally be in the second half of the three-year
planning cycle.
b) The 10-Year Assessment shall review the system for a ten-year planning
horizon and address, at a minimum, facilities 100 kV and above needed in
year 10. This assessment is not intended to review each consecutive year
in the planning horizon. The Transmission Provider shall work with
stakeholders to identify the appropriate year(s) to study in developing the
assessment study scope.
c) The 10-Year Assessment shall assess the cost effectiveness of proposed
solutions over a forty-year time horizon.
d) The Transmission Provider shall develop the assessment study scope with
input from the stakeholders. The study scope shall take into consideration
the input requirements described in Section III.6.
e) The assessment study scope shall specify the methodology, criteria,
assumptions, and data to be used.
f) The Transmission Provider, in consultation with the stakeholder working
groups, shall finalize the assessment study scope.
g) The assessment study scope shall be posted on the SPP website and will
be included in the published annual SPP Transmission Expansion Plan
report. The assessment study scope shall include an explanation of which
transmission needs driven by Public Policy Requirements will be
evaluated for potential solutions in the local and regional transmission
planning process, as well as an explanation of why other suggested
transmission needs will not be evaluated.
h) In accordance with the assessment study scope, the Transmission Provider
shall analyze potential solutions, including those upgrades approved by the
SPP Board of Directors from the most recent 20-Year Assessment,
following the process set forth in Section III.8.
5) Preparation of the Near Term Assessment
a) The Transmission Provider shall perform the Near Term Assessment on an
annual basis.
b) The Near Term Assessment will be performed on a shorter planning
horizon than the 10-Year Assessment and shall focus primarily on
identifying solutions required to meet the reliability criteria defined in
Section III.6.
c) The assessment study scope shall specify the methodology, criteria,
assumptions, and data to be used to develop the list of proposed near term
upgrades.
d) The Transmission Provider, in consultation with the stakeholder working
groups, shall finalize the assessment study scope. The study scope shall
take into consideration the input requirements described in Section III.6.
e) The assessment study scope shall be posted on the SPP website and will
be included in the published annual SPP Transmission Expansion Plan
report. The assessment study scope shall include an explanation of which
transmission needs driven by Public Policy Requirements will be
evaluated for potential solutions in the local and regional transmission
planning process, as well as an explanation of why other suggested
transmission needs will not be evaluated.
f) In accordance with the assessment study scope, the Transmission Provider
shall analyze potential solutions, including those upgrades approved by the
SPP Board of Directors from the most recent 20-Year Assessment and 10-
Year Assessment, following the process set forth in Section III.8.
6) Policy, Reliability, and Economic Input Requirements to Planning Studies
The Transmission Provider shall incorporate, as appropriate for the assessment
being performed, the following into its planning studies:
a) NERC Reliability Standards;
b) SPP Criteria;
c) Transmission Owner-specific planning criteria as set forth in Section II;
d) Previously identified and approved transmission projects;
e) Zonal Reliability Upgrades developed by Transmission Owners, including
those that have their own FERC approved local planning process, to meet
local area reliability criteria;
f) Long-term firm Transmission Service;
g) Load forecasts, including the impact on load of existing and planned
demand management programs, exclusive of demand response resources;
h) Capacity forecasts, including generation additions and retirements;
i) Existing and planned demand response resources;
j) Congestion within SPP and between the SPP Region and other regions and
balancing areas;
k) Renewable energy standards;
l) Fuel price forecasts;
m) Energy efficiency requirements;
n) Other relevant environmental or government mandates;
o) Transmission needs driven by Public Policy Requirements identified by
the Transmission Provider and stakeholders; and
p) Other input requirements identified during the stakeholder process.
q) In developing the long term capacity forecasts, the studies will reflect
generation and demand response resources capable of providing any of the
functions assessed in the SPP planning process, and can be relied upon on
a long-term basis. Such demand response resources shall be permitted to
participate in the planning process on a comparable basis. These studies
will consider operational experience gained from markets operated by the
Transmission Provider.
7) Inclusion of Upgrades Related to Transmission Service and Generator
Interconnection in Planning Studies
a) Transmission upgrades related to requests for Transmission Service are
described in Sections 19 and 32 of the Tariff and Attachment Z1 to the
Tariff. These upgrades are included as part of the future expansion of the
Transmission System, upon the execution of the various Service
Agreements with the Transmission Customers. Transmission upgrades
related to an approved request for Transmission Service may be deferred
or supplemented by other upgrades based upon the results of subsequent
studies. Changes in planned upgrades do not remove the obligation of the
Transmission Provider to have adequate transmission facilities available to
start or continue the approved Transmission Service.
b) Interconnection facilities and other transmission upgrades related to
requests for generation interconnection service are described in
Attachment V. These upgrades are included as part of the future
expansion of the Transmission System upon the execution of the various
interconnection agreements with the Generation Interconnection
Customers. Transmission upgrades related to an approved interconnection
agreement may be deferred or supplemented by other upgrades based upon
the results of subsequent studies. Changes in planned upgrades do not
remove the obligation of the Transmission Provider to have adequate
transmission facilities available to start or continue the approved
interconnection service.
c) The studies performed under this Section III of Attachment O shall
accommodate and model the specific long-term firm Transmission Service
of Transmission Customers and specific interconnections of Generation
Interconnection Customers no later than when the relevant Service
Agreements and interconnection agreements are accepted by the
Commission.
8) Process to Analyze Transmission Alternatives for each Assessment
The following shall be performed, at the appropriate time in the respective
planning cycle, for the 20-Year Assessment, 10-Year Assessment and Near Term
Assessment studies:
a) The Transmission Provider shall perform the required studies to analyze
the potential alternatives for improvements to the Transmission System,
provided by the Transmission Provider and by the stakeholders, in order to
address the final assessment study scope agreed to with the stakeholders.
This analysis shall consider the current and anticipated future needs of the
SPP Region within the parameters of the study scope. The analysis shall
also consider the value brought to the SPP Region by incremental changes
to the proposed solutions.
b) For all potential alternatives provided by the stakeholders, including
reliability upgrades that Transmission Owners (which includes those
Transmission Owners that have their own FERC approved local planning
process), propose to address violations of company-specific planning
criteria pursuant to Section II.5 of this Attachment O, and upgrades to
address transmission needs driven in whole or in part by identified Public
Policy Requirements, the Transmission Provider shall determine if there is
a more comprehensive regional solution to address the reliability needs,
economic needs, and needs driven by Public Policy Requirements
identified in the assessment.
c) In addition to recommended upgrades, the Transmission Provider will
consider, on a comparable basis, any alternative proposals which could
include, but would not be limited to, generation options, demand response
programs, “smart grid” technologies, and energy efficiency programs.
Solutions will be evaluated against each other based on a comparison of
their relative effectiveness of performance and economics.
d) The Transmission Provider shall assess the cost effectiveness of proposed
solutions. Such assessments shall be performed in accordance with the
Integrated Transmission Planning Manual, which shall be developed by
the Transmission Provider, in consultation with stakeholders, and
approved by the Markets and Operations Policy Committee. SPP shall
post this manual on its website.
e) The analysis described above shall take into consideration the following:
i) The financial modeling time frame for the analysis shall be 40
years (with the last 20 years provided by a terminal value).
ii) The analysis shall include quantifying the benefits resulting from
dispatch savings, loss reductions, avoided projects, applicable
environmental impacts, reduction in required operating reserves,
interconnection improvements, congestion reduction, and other
benefit metrics as appropriate.
iii) The analysis shall identify and quantify, if possible, the benefits
related to any proposed transmission upgrade that is required to
meet any regional reliability criteria.
iv) The analysis scope shall include different scenarios to analyze
sensitivities to load forecasts, wind generation levels, fuel prices,
environmental costs, and other relevant factors. The Transmission
Provider shall consult the stakeholders to guide the development of
these scenarios.
v) The results of the analysis shall be reported on a regional, zonal,
and state-specific basis.
vi) The analysis shall assess the net impact of the transmission plan,
developed in accordance with this Attachment O, on a typical
residential customer within the SPP Region and on a $/kWh basis.
f) The Transmission Provider shall make a comprehensive presentation of
the preferred potential solutions, including the results of the analysis
above, to the stakeholder working groups and at a planning summit
meeting or web conference. The presentation shall include a discussion of
all the Transmission Provider and stakeholder alternatives considered and
reasons for choosing the particular preferred solutions.
g) The Transmission Provider shall solicit feedback on the solutions from the
stakeholder working groups and through the stakeholders attending the
various planning summits. The Transmission Provider will also include
feedback from stakeholders through other meetings, teleconferences, web
conferences, and via email or secure web-based workspace. Stakeholders
may propose any combination of demand resources, transmission, or
generation as alternate solutions to identified reliability and economic
needs.
h) Upon consideration of the results of the cost effectiveness analysis and
feedback received in the subsequent review process, the Transmission
Provider shall prepare a draft list of projects for review and approval in
accordance with Section V.
Effective Date: 7/26/2010 - Docket #: ER11-3509
IV. Other Planning Studies
1) Sponsored Upgrade Studies
Any entity may request that a Sponsored Upgrade be built. SPP will evaluate the
impact of any Sponsored Upgrade on Transmission System reliability and identify
any necessary mitigation of these impacts. Such entity must be willing to assume
the cost of such Sponsored Upgrade, study costs, and any cost associated with
such necessary mitigation. The proposed Sponsored Upgrade will be submitted to
the proper stakeholder working group for their review as a part of the
transmission planning process.
2) High Priority Studies
a) The Transmission Provider shall perform high priority studies in
accordance with this Attachment O and the Transmission Network
Economic Modeling & Methods manual which shall be maintained on the
SPP website.
b) Potential Balanced Portfolios, as developed through the process specified
in Section IV.3, shall be considered to be high priority studies.
c) The stakeholders may request high priority studies, including a request for
the Transmission Provider to study potential upgrades or other
investments necessary to integrate any combination of resources, whether
demand resources, transmission, or generation, identified by the
stakeholders. Annually, the costs of up to three high priority studies
requested by the stakeholders and performed by the Transmission Provider
shall be recovered pursuant to Schedule 1-A of this Tariff. A high priority
study of a potential Balanced Portfolio initiated by the Transmission
Provider will not be considered a stakeholder request pursuant to this
Section IV.2.c.
d) The Transmission Provider, in consultation with the stakeholders, shall
develop the scope for each high priority study and post the scope(s) on the
SPP website.
e) Each study shall include:
i) Quantification of benefits and costs in accordance with this
Attachment O and the Transmission Network Economic Modeling
and Methods manual; and
ii) An analysis of the sensitivity of the economics of the upgrades
included in the high priority study to changes in assumptions.
f) The Transmission Provider shall solicit input from the stakeholders and
the Regional State Committee regarding the appropriate sensitivity
analyses to be performed.
g) For each high priority study the Transmission Provider shall publish a
report, including but not limited to, the study input assumptions, the
estimated cost of the upgrades, any third party impacts, the expected
economic benefits of the upgrades, and identify reliability impacts, if any,
of the upgrades. The report and related studies and the criteria,
assumptions and data underlying the report shall be posted on the SPP
website, with password protected access if required to preserve the
confidentiality of information in accordance with the provisions of the
Tariff and the SPP Membership Agreement and to address Critical Energy
Infrastructure Information (CEII) requirements. The CEII compliant
redacted version of the report shall be posted on the SPP website. The
redacted version shall include instructions for acquiring the complete
version of the report.
h) The Transmission Provider may recommend, based on the results of a high
priority study, a high priority upgrade for inclusion in the SPP
Transmission Expansion Plan in accordance with the approval process set
forth in Section V.
3) Evaluation of Potential Balanced Portfolios
a) The Transmission Provider shall solicit input from stakeholders on
combinations of potential economic upgrades to be evaluated as potential
Balanced Portfolios.
b) Each economic upgrade to be included in a potential Balanced Portfolio:
i) Must include a 345 kV or higher voltage facility;
ii) May include lower voltage transmission facilities needed to
integrate the 345 kV or higher facilities and achieve the benefits;
however, the cost of the lower voltage transmission facilities
cannot exceed the cost of the 345 kV or higher facilities included
in the economic upgrade; and
iii) An economic upgrade that includes lower voltage transmission
facilities for which the cost of such facilities exceeds the cost of
the 345 kV or higher facilities constituting the economic upgrade
may be included in the evaluation of a potential Balanced
Portfolio, if a Project Sponsor agrees to bear the portion of the cost
of the lower voltage facilities that is in excess of the cost of the 345
kV or higher facilities.
iv) Will include an evaluation of the costs of the upgrades, including
any cost impacts potentially allocable to the Transmission Provider
or a Zone(s) from third party upgrade(s) required to relieve
congestion on a neighboring system due to the construction of the
potential Balanced Portfolio.
c) The Transmission Provider shall determine for each Zone the net present
value of the revenue requirements of each potential Balanced Portfolio as
follows:
i) The revenue requirements for each potential Balanced Portfolio
shall be calculated as if all of the upgrades associated with the
potential Balanced Portfolio are simultaneously available to the
power system. This requirement is for evaluation purposes only
and shall not restrict the timing of the construction of individual
upgrades within a Balanced Portfolio approved by the SPP Board
of Directors.
ii) Based on input from the Transmission Owners and other pertinent
information, the Transmission Provider shall estimate the
construction costs of each upgrade in the potential Balanced
Portfolio.
iii) For each upgrade in the potential Balanced Portfolio, the
Transmission Provider shall use the transmission fixed charge
rate(s) for the appropriate Transmission Owner(s) to estimate the
revenue requirements. In each annual planning cycle, the
Transmission Owner shall supply its fixed charge rate to the
Transmission Provider.
iv) The fixed charge rate(s) shall take account of all costs necessary to
support the upgrade in the potential Balanced Portfolio, including
but not limited to, operation and maintenance expenses,
depreciation, property and payroll taxes, income taxes, if
applicable, return on investment and any other factors affecting the
revenue requirement associated with the upgrade.
v) The revenue requirements also shall include any specific costs that
are projected to be incurred by the Transmission Provider or a
Zone(s) as a result of third-party impacts due to one or more
upgrades within a proposed Balanced Portfolio.
vi) The revenue requirements for the potential Balanced Portfolio shall
equal the sum of the revenue requirements of the upgrades that
comprise the potential Balanced Portfolio.
vii) The Transmission Provider shall estimate the cost for each Zone by
allocating the revenue requirements for the potential Balanced
Portfolio to each Zone based on its Region-wide Load Ratio Share
forecasted over the ten year period analyzed.
viii) If any costs of an upgrade in the potential Balanced Portfolio will
be borne by other funding mechanisms, such costs shall not be
included in the determination of the net present value of the
revenue requirements for the potential Balanced Portfolio.
d) The Transmission Provider shall determine for each Zone the net present
value of the benefits of each potential Balanced Portfolio as follows:
i) The benefits from each potential Balanced Portfolio shall be
calculated as if all of the upgrades associated with the potential
Balanced Portfolio are simultaneously available to the power
system.
ii) The Transmission Provider shall use an adjusted production cost
metric to analyze the benefits of the potential Balanced Portfolio,
where adjusted production cost is the production cost minus
revenues from sales plus cost of purchases. As described in
Section IV.5 of this Attachment O, the Transmission Provider shall
continue to evaluate and explore with the stakeholders any
additional metrics and criteria which have quantifiable economic
effects.
iii) The adjusted production cost benefit for each Zone shall equal the
difference between the adjusted production cost with the potential
Balanced Portfolio modeled and without the potential Balanced
Portfolio modeled.
iv) The Transmission Provider shall estimate the annual benefits for
each Zone over the same ten-year period as used to determine the
costs by calculating the annual benefits for at least three specific
years in the ten-year time period and interpolating the annual
benefits for the remaining years.
e) A potential Balanced Portfolio shall meet the following conditions:
i) Cost Beneficial: The sum of the benefits of the potential Balanced
Portfolio determined in Section IV.3.d must equal or exceed the
sum of the costs determined in Section IV.3.c; and
ii) Balanced: For each Zone, the sum of the benefits of the potential
Balanced Portfolio determined in Section IV.3.d must equal or
exceed the sum of the costs determined in Section IV.3.c.
Additionally, the balance may be achieved through the provisions
set forth in Section IV.4.
f) In developing a potential Balanced Portfolio, the Transmission Provider
shall timely publish a report, including but not limited to, the study input
assumptions, the estimated costs included in the potential Balanced
Portfolio, and the expected economic benefits of the potential Balanced
Portfolio. With regard to such report, the Transmission Provider shall
comply with the information sharing and reporting requirements in Part
VII (Information Exchange) and Section IV.2 (High Priority Studies) of
this Attachment O, including the requirements for treatment of
confidential information.
4) Options for Achieving a Balanced Portfolio
a) Section IV.3 of this Attachment O sets forth provisions to achieve a
Balanced Portfolio when there are deficient Zones. A deficient Zone is a
Zone where the costs allocated to the Zone in Section IV.3.c exceed the
benefits allocated to the Zone in Section IV.3.d, including any additional
costs or benefits derived from the application of the provisions in this
Section IV.4.
b) In order to achieve a Balanced Portfolio, the Transmission Provider may
include transmission upgrades that do not adhere to the voltage
requirements of Sections IV.3.b.i and ii of this Attachment O.
c) If including the lower voltage transmission facilities does not achieve a
Balanced Portfolio, the Transmission Provider may balance the portfolio
by transferring a portion of the Base Plan Zonal Annual Transmission
Revenue Requirement and/or the Zonal Annual Transmission Revenue
Requirement from the deficient Zone(s) to the Balanced Portfolio Region-
wide Annual Transmission Revenue Requirement. Transmission Provider
shall include the following constraints in this assessment:
i) Limit the amount to be transferred from the Base Plan Zonal
Annual Transmission Revenue Requirement and/or the Zonal
Annual Transmission Revenue Requirement to the Balanced
Portfolio Region-wide Annual Transmission Revenue Requirement
to the minimum amount that will balance the portfolio over the
ten-year period analyzed;
ii) Transfer from the Base Plan Zonal Annual Transmission Revenue
Requirement first, then, if necessary, transfer from the Zonal
Annual Transmission Revenue Requirement; and
iii) For each Zone, meet the conditions specified in Section IV.3.e.ii of
this Attachment O.
5) Development of Additional Benefit Metrics for Balanced Portfolios
a) The Transmission Provider shall continue to evaluate and explore with the
stakeholders via the transmission planning process any additional metrics
and criteria which have quantifiable economic effects, such as:
i) Reduction in system losses;
ii) Differing environmental impacts;
iii) Improvement to capacity margin and operating reserve
requirements;
iv) Energy, capacity and ancillary service market facilitation;
v) Increased competition in wholesale markets;
vi) Reliability enhancement, including storm hardening and black start
capability; and
vii) Critical infrastructure and homeland security.
b) Any subsequent adjustment to the metrics and criteria for evaluating
potential Balanced Portfolios developed by the Transmission Provider,
with input from the stakeholders, shall be proposed through Tariff
amendments.
6) Evaluation of Proposed Interregional Projects
a) Proposed Interregional Projects shall be developed through the
Transmission Provider’s participation in an Interregional Planning Process
with one or more Interregional Planning Regions in accordance with the
provisions of Section VIII of this Attachment O.
b) The Transmission Provider shall facilitate a regional review of the
proposed Interregional Projects identified in the Coordinated System Plan
(“CSP”) report developed and issued by the Joint Planning Committee
pursuant to the applicable Interregional Planning Process. The regional
review will be subject to the timelines identified in the respective
Interregional Planning Region procedures providedin accordance with in
the applicable Addendum(s) to this Attachment O.
c) The Transmission Provider shall, in consultation with stakeholders,
develop the regional review methodology which shall be posted on the
Transmission Provider’s website. The methodology will contain, at a
minimum, the specific procedures to:
i. Determine the assumptions and criteria necessary to
complete the regional review of proposed Interregional Projects.
ii. Determine the regional models to be used in the evaluation
of the proposed Interregional Projects.
iii. Determine the appropriate updates to the regional models to
be used in the evaluation of the proposed Interregional Projects.
iv. Quantify the benefits of theeach proposed Interregional
Project using the Transmission Provider’s regional benefit metrics
consistent with Section III.6 of this Attachment O.
d) For each regional review of a proposed Interregional Project, the
Transmission Provider shall publish a report which includes, but is not
limited to, the following:
i. The results of the regional review analysis and a
comparison to the results contained in the CSP report;
ii. The study input assumptions and criteria used to assess the
proposed Interregional Project;
iii. The proposed Interregional Project’s reliability impacts on
the Transmission Provider’s system and impacts on third parties
not participating in the applicable Interregional Planning Process;
iv. Any expected economic and reliability benefits of the
proposed Interregional Project; and
v. The Transmission Provider shall make a recommendation
whether to approve the proposed Interregional Project and the
allocation of proposed Interregional Project costs between the
Interregional Planning Regions.
e) The Transmission Provider’s report shall be posted on the
Transmission Provider’s website., If the Transmission Provider’s report
contains confidential information with password protected access if
required to preserve the confidentiality of information in accordance with
the provisions of the Tariff, the SPP Membership Agreement, andor
Critical Energy Infrastructure Information (“CEII”) requirements the
report will be password protected to preserve the confidentiality of
information. and a redacted version of the report shall be posted on the
Transmission Provider’s website. The redacted version shall include
instructions for acquiring the complete version of the report.
f) The Transmission Provider’s report shall be reviewed by the
appropriate stakeholder group(s) in accordance with the provisions of
Section II of Attachment O. The stakeholder group(s) and the
Transmission Provider will each provide a recommendation to the Markets
and Operations Policy Committee. The Markets and Operations Policy
Committee shall make a recommendation to the SPP Board of Directors
regarding the approval of a proposed Interregional Projectmay endorse a
report and recommendation for approval by the SPP Board of Directors.
g) The SPP Board of Directors shall review all reports and
recommendations related to the regional review of the proposed
Interregional Project.
i. In order for tThe SPP Board of Directors tomay approve a
proposed Interregional Project, only where the regional benefits
must equal or exceed the regional costs for the SPP Region.
ii. The Transmission Provider shall notify the applicable
interregional Jjoint Pplanning Ccommittee whether a proposed
Interregional Project has been approved by the SPP Board of
Directors.
h) To qualify as an approved Interregional Project, the proposed
Interregional Project must be approved by the SPP Board of Directors and
the corresponding Interregional Planning Region in accordance with the
applicable Interregional Planning Process.
i) Upon approval by the corresponding Interregional Planning
Region and the Transmission ProviderSPP Board of Directors, the
Transmission Provider’s portion of the approved Interregional Project will
be constructed in accordance with Section VI of this Attachment O.
Effective Date: 7/26/2010 - Docket #: ER11-3509
V. The SPP Transmission Expansion Plan
The SPP Transmission Expansion Plan shall be a comprehensive listing of all
transmission projects in the SPP for the twenty-year planning horizon. Projects included
in the SPP Transmission Expansion Plan are: 1) upgrades required to satisfy requests for
Transmission Service; 2) upgrades required to satisfy requests for generation
interconnection; 3) approved projects from the 20-Year Assessment, 10-Year Assessment
and Near Term Assessment (ITP Upgrades); 4) upgrades within approved Balanced
Portfolios; 5) approved high priority upgrades; and 6) endorsed Sponsored Upgrades; and
7) approved Interregional Projects. A specific endorsed Sponsored Upgrade will be
included in the Transmission System planning model upon execution of a contract that
financially commits a Project Sponsor to such upgrade or when such upgrade is otherwise
funded pursuant to the Tariff. An approved Interregional Project will be included in the
Transmission System Pplanning model upon approval for construction in accordance
with Section IV.6 of this Attachment O. To be included in the SPP Transmission
Expansion Plan, each project must have been endorsed or approved through its proper
process. This Section V describes the process used to approve or endorse the specific
upgrades identified in 20-Year, 10-Year and Near Term Assessments, high priority
upgrades, and Balanced Portfolios.
1) Development of the Recommended Set of Upgrades from Planning
Studies
a) Upon completion of the analysis, studies and stakeholder review
and comment on the results in accordance with Sections III and IV
of this Attachment O, the Transmission Provider shall prepare a
draft list of all projects for review by the stakeholders. The
Transmission Provider shall post the draft project list on the SPP
website and shall identify the assessment process with which they
are associated.
b) Upon posting of the draft project list, the Transmission Provider
shall invite written comments to be submitted to the Transmission
Provider.
c) The Transmission Provider shall review the draft project list with
the stakeholder working groups and the Regional State Committee.
d) Considering the input from the stakeholders through this review
process, the Transmission Provider shall prepare a recommended
list of proposed ITP Upgrades based upon the analysis as described
in Section III, upgrades within proposed Balanced Portfolios, and
proposed high priority upgrades for review and approval.
2) Disclosure of the Recommended Set of Upgrades and Supporting
Information from Planning Studies
a) The Transmission Provider shall disclose planning information,
which includes the recommended list of proposed upgrades and the
underlying studies, by providing:
i) All stakeholders equal access, notice and opportunity to
participate in planning summits, the stakeholder working
group meetings and the sub-regional planning meetings as
well as any associated web conferences or teleconferences
as set forth in Section II of this Attachment O; and
ii) For the contemporaneous availability of such meeting
handouts on the SPP website.
b) The related study results, criteria, assumptions, analysis results,
and data underlying the studies used to develop the proposed ITP
Upgrades, the list of upgrades within proposed Balanced
Portfolios, and proposed high priority upgrades shall be posted on
the SPP website, with password protected access if required to
preserve the confidentiality of information in accordance with the
provisions of the Tariff and the SPP Membership Agreement and
to address CEII requirements. Additionally, Transmission Owner
specific local plans and criteria shall be accessible via an electronic
link on the SPP website in accordance with Section VII of this
Attachment O. The CEII compliant redacted version of the SPP
Transmission Expansion Plan and individual Transmission Owner
specific local plans shall be posted on the SPP website. Redacted
versions shall include instructions for acquiring the complete
version of the SPP Transmission Expansion Plan and individual
Transmission Owner specific local plans. An electronic link shall
be provided on the SPP website by which stakeholders may send
written comments on the SPP Transmission Expansion Plan and
Transmission Owner specific local plans and criteria.
3) Approval and Endorsement Process
a) The Markets and Operations Policy Committee shall make a
recommendation regarding the approval of ITP Upgrades.
Approval by the SPP Board of Directors is required for the
inclusion of ITP Upgrades in the SPP Transmission Expansion
Plan.
b) The Markets and Operations Policy Committee shall make a
recommendation regarding the inclusion of a proposed Balanced
Portfolio in the SPP Transmission Expansion Plan. Approval by
the SPP Board of Directors is required for inclusion of a Balanced
Portfolio in the SPP Transmission Expansion Plan. SPP is not
required to have a Balanced Portfolio each year.
c) If the SPP Board of Directors approves a list of ITP Upgrades,
upgrades within Balanced Portfolios, or high priority upgrades
other than those recommended by the Markets and Operations
Policy Committee, the explanation for the deviation shall be
included in the SPP Transmission Expansion Plan.
d) The Markets and Operations Policy Committee shall make a
recommendation regarding the approval of a high priority upgrade
recommended by the Transmission Provider. Approval by the SPP
Board of Directors is required for the inclusion of a high priority
upgrade in the SPP Transmission Expansion Plan.
e) The Markets and Operations Policy Committee shall make a
recommendation regarding endorsement of a proposed Sponsored
Upgrade. Endorsement by the SPP Board of Directors is required
for the inclusion of a Sponsored Upgrade in the SPP Transmission
Expansion Plan.
f) The list of projects shall be posted on the SPP website by the
Transmission Provider. The Transmission Provider shall, in
addition to the posting, e-mail notice of such posting to the
stakeholders at least ten days prior to a meeting at which the SPP
Board of Directors is expected to take action on accepting or
modifying the list.
g) The list of approved ITP Upgrades, upgrades within approved
Balanced Portfolios, approved high priority upgrades, and
endorsed Sponsored Upgrades may be modified throughout the
year by the SPP Board of Directors provided that such action shall
be posted and noticed pursuant to this section.
h) The list of upgrades for Transmission Service are approved in
accordance with the provisions of Attachment Z1 and included in
the STEP accordingly.
i) The list of interconnection facilities and other transmission
upgrades related to requests for generation interconnection service
are approved in accordance with the provisions of Attachment V
and included in the STEP accordingly.
j) The list of approved Interregional Projects is approved in
accordance with Section IV.6 of this Attachment O and is included
in the STEP accordingly.
k) The SPP Transmission Expansion Plan shall be presented to the
SPP Board of Directors at least once a year. Approval of the ITP
Upgrades, Balanced Portfolios, and high priority upgrades, and the
endorsement of the other projects contained in the SPP
Transmission Expansion Plan by the SPP Board of Directors shall
certify a regional plan for meeting the transmission needs of the
SPP Region.
4) Updates to the SPP Transmission Expansion Plan
a) Modifications to the SPP Transmission Expansion Plan may be
made between the annual approvals as required to maintain system
reliability and to meet new business opportunities as they are
identified.
b) The Transmission Provider shall work with the stakeholders on an
on-going basis throughout the year analyzing any newly identified
issues and incorporating any necessary adjustments to the SPP
Transmission Expansion Plan on an out of cycle basis.
c) On a quarterly basis, the Transmission Provider shall post any
modifications to the SPP Transmission Expansion Plan on the SPP
website.
d) The modifications shall be reviewed by the stakeholders and the
Regional State Committee, endorsed by the stakeholder working
groups, and approved or endorsed by the SPP Board of Directors,
in accordance with Section V of this Attachment O.
5) Removal of an Upgrade from the SPP Transmission Expansion Plan.
The Transmission Provider, in consultation with the stakeholders in
accordance with Section V of this Attachment O, may remove an upgrade
from an approved SPP Transmission Expansion Plan. A Transmission
Owner that has incurred costs related to the removed upgrade shall be
reimbursed for any expenditure pursuant to Section VIII of Attachment J
to the Tariff.
6) Status of Upgrades Identified in the SPP Transmission Expansion Plan
a) The Transmission Provider shall track the status of planned system
upgrades to ensure that the projects are built in time or that
acceptable mitigation plans are in place to meet customer and
system needs.
b) On a quarterly basis, at a minimum, the Transmission Provider
shall:
i) Report to the Markets and Operations Policy Committee,
the Regional State Committee and the SPP Board of
Directors on the status of the upgrades identified in the SPP
Transmission Expansion Plan; and
ii) Post the status of the upgrades on the SPP website.
Effective Date: 7/26/2010 - Docket #: ER10-1960
VI. Construction of Transmission Facilities
1) The Transmission Provider shall not build or own transmission facilities. The
Transmission Provider, with input from the Transmission Owners and other
stakeholders, shall designate 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. Each
Transmission Owner and 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.
3) 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.
4) After a new transmission project is (i) approved under the SPP Transmission
Expansion Plan; or (ii) an approved as an Interregional Project with a portion to
be constructed within the SPP Region in accordance with Section IV.6 (i) of this
Attachment O; or (iii) required pursuant to a Service Agreement; or (ivii) 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.
5) 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 O. 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 VI.4 of this Attachment O.
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:
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.
Effective Date: 7/26/2010 - Docket #: ER11-3509
VII. Information Exchange
1) Data Requirements
a) Any entity that is subject to the NERC Reliability Standards is
required to provide data to the Transmission Provider in
accordance the NERC Reliability Standards for Modeling, Data
and Analysis (the “NERC MOD Standards”).
b) When an entity has developed a preliminary engineering concept
for new facilities that impact the interconnected operation of the
Transmission System, it shall contact the Transmission Provider so
that the optimal integration of any new facilities and potentially
benefiting parties can be identified.
c) In preparation for the annual update of transmission planning
models for each annual planning cycle, Members, Transmission
Customers, Transmission Owners, Generation Interconnection
Customers and all other stakeholders must provide to the
Transmission Provider the data specified in this Section VII.
d) During the course of the annual planning cycle, if material changes
to the data occur, the data owners must provide timely written
notice to the Transmission Provider.
e) The format required to submit modeling data shall be posted on the
SPP website.
f) The modeling data shall be posted on the SPP website with
password protected access.
2) Owners of transmission facilities shall provide to the Transmission
Provider:
a) Modeling data for power flow, short-circuit and stability analysis;
b) Detailed power system models of their transmission systems and
provide updates to their models via a password protected web
based application;
c) Data regarding the design and operation of their transmission
facilities;
d) Their FERC Form 715;
e) Their individual company-specific planning criteria;
f) Planning grade cost estimates and schedules for upgrades in the
SPP Transmission Expansion Plan in a timely manner;
g) Their five-year transmission construction plans; and
h) Their transmission fixed charge rate.
3) Generator owners shall provide to the Transmission Provider:
a) Modeling data for power flow, short-circuit and stability analysis;
b) Data for planned additions or upgrades, including status and
expected in-service dates, planned retirements and environmental
restrictions; and
c) Modeling data to perform economic planning studies in accordance
with Sections III and IV of this Attachment O. Data required to
model generating units for the economic planning studies is
documented in the Transmission Network Economic Modeling and
Methods manual which shall be posted on the SPP website.
4) Transmission Customers
a) Network Customers shall provide the Transmission Provider an
update of the information on its Network Integration Transmission
Service application with a ten year forecast of summer and winter
load at each delivery point and ten year projection of network
resources and with any other information that has changed from
the original application.
b) Point-to-point Transmission Customers shall provide to the
Transmission Provider their good faith projections on their need
for service including transmission capacity, duration and points of
delivery and receipt over the ten year planning horizon.
c) Transmission Customers with existing and planned demand
response resources, including demand response resources, shall
provide information on such resources.
5) Neighboring Transmission Providers and RTOs
In accordance with applicable agreements and Section VIII of this
Attachment O, the Transmission Provider shall exchange with neighboring
Transmission Providers and RTOs the data required for the development
of power flow cases, short-circuit cases and stability cases over the ten
year planning horizon.
6) Stakeholder Access to Transmission Planning Information
a) The planning information, data, and models provided pursuant to
this Section VII shall be sufficient to allow parties to replicate
results of the planning studies.
b) The Transmission Provider shall provide a secure web-based
workspace for hosting and sharing planning information, data, and
models.
c) The secure web-based workspace shall be password protected and
require CEII clearance in accordance with Section VII.8 of this
Attachment O.
d) Instructions to obtain access to the Transmission Provider’s power
flow models shall be posted on the SPP website.
e) Instructions to obtain copies of the Transmission Provider’s
transmission planning maps shall be posted on the SPP website.
7) Confidentiality Requirements
a) The Transmission Provider shall make all reasonable efforts to
preserve the confidentiality of information in accordance with the
provisions of the Tariff and the SPP Membership Agreement.
b) For those entities that have executed a confidentiality agreement,
the Transmission Provider shall provide password protected access
to confidential information related to the SPP Transmission
Expansion Plan and the underlying studies and models via the SPP
website.
c) The form of confidentiality agreement shall be posted on the SPP
website.
d) Resource specific data shall not be made available by the
Transmission Provider if the data has been designated confidential
by the data provider or if the data can be used to:
i) Determine security constrained unit commitment or
economic dispatch for resources; or
ii) Perform an economic evaluation of costs and benefits.
e) Other transmission planning information shall be posted on the
SPP website and may be password protected, as appropriate.
f) Confidentiality agreements shall be required for Members and
Market Participants to receive data where the owner of the data has
given permission to the Transmission Provider to release the data.
8) Critical Energy Infrastructure Information (CEII) Requirements
a) The Transmission Provider shall take appropriate steps to protect
CEII information.
b) The Transmission Provider shall screen Members and Market
Participants prior to providing access to CEII information.
Individuals that do not belong to a confirmed pre-screened
Member or Market Participant shall be directed to the
Commission’s website for instructions for access to CEII
information.
c) For those entities that have met the CEII requirements in Section
VII.8.b of this Attachment O, the Transmission Provider shall
provide password protected access to CEII information related to
the SPP Transmission Expansion Plan and the underlying studies
and models via the SPP website.
d) The Transmission Provider shall follow the guidelines set forth by
the Commission to flag data which shall be treated as CEII
sensitive.
Effective Date: 7/26/2010 - Docket #: ER10-1960
VIII. Inter-regional CoordinationPlanning Process
1) The Transmission Provider shall participate in Iinterregional Pplanning
undertake to coordinate any studies required to assure the reliable,
efficient, and effective operation of the Transmission System with the
following Interregional Planning Regions listed in the respective
Addendums to this Attachment O:
Addendum 3- The Midwest Independent Transmission System Operator,
Inc. (“MISO”)
Addendum 4- Mid-Continent Area Power Pool (“MAPP”)
Addendum 5- Southeastern Regional Transmission Planning (“SERTP”),
at a minimum, first-tier adjacent interconnected systems. Such
coordination shall include:
a) Sharing system plans to ensure that such plans are simultaneously
feasible and otherwise use consistent assumptions and data; and
b) Identifying system enhancements that could relieve inter-regional
congestion or integrate new resources on an aggregate basis.
2) The portion of an approved Interregional Project to be constructed by each
Interregional Planning Regions’ shall be determined in accordance with
respective obligations to construct an approved Interregional Projects shall
be determined in accordance with the applicable Addendums to this
Attachment O. The Transmission Provider shall undertake to coordinate
any studies with other transmission providers primarily through
participation in the agreements listed in Addendum 1 to this Attachment
O.
3) The costs of an approved Interregional Projects shall be allocated to each
Interregional Planning Region in accordance with the applicable
Addendums to this Attachment O. On an annual basis, the Transmission
Provider shall review the ongoing planning activities under the agreements
specified in Addendum 1 to this Attachment O to determine the need for
any additional inter-regional studies. The Transmission Provider shall
share this review with the stakeholders at a planning summit and solicit
input regarding additional inter-regional studies that should be initiated by
the Transmission Provider.
4) The Transmission Provider’s obligation to construct an approved
Interregional Projects within the SPP Region shall be determined in
accordance with Section IV.6 of this Attachment O.
Effective Date: 7/26/2010 - Docket #: ER10-1960
IX. Recovering Costs Associated with the Planning Process
1) The Transmission Provider’s costs associated with the planning process
and associated studies set forth in this Attachment O shall be recovered
pursuant to Schedule 1-A of the Tariff.
2) The Transmission Provider’s costs associated with studies for potential
Sponsored Upgrades, shall be the responsibility of the entities requesting
such studies.
3) The Transmission Provider’s costs for studies associated with requests for
long-term firm transmission service shall be recovered pursuant to
Sections 19 and 32 of the Tariff.
4) The Transmission Provider’s costs for studies associated with requests for
interconnection service shall be recovered pursuant to Attachment V of the
Tariff.
Effective Date: 7/26/2010 - Docket #: ER10-1960
X. Cost Allocation
The costs associated with new or upgraded transmission facilities shall be
allocated in accordance with Attachment J to the Tariff.
Effective Date: 7/26/2010 - Docket #: ER10-1960
XI. Dispute Resolution
Any dispute regarding the planning process shall be resolved utilizing the
procedures identical to those set forth in Section 12 of the Tariff.
Effective Date: 7/26/2010 - Docket #: ER10-1960
ADDENDUM 1 TO ATTACHMENT O
INTER-REGIONAL COORDINATION AGREEMENTS
1) In addition to Iinterregional Pplanning pursuant to accordance with Section VIII of
Attachment O, the Transmission Provider shall undertake to coordinate any studies with other
transmission providers primarily through participation in the agreements listed below:
1) The Joint Operating Agreement between the Midwest Independent Transmission
System Operator, Inc. (MISO) and Southwest Power Pool, Inc. (SPP);
2a) The Transmission Coordination Agreement between the Associated Electric
Cooperative, Inc. (AECI) and the Southwest Power Pool, Inc. (SPP);
3b) The United States Department of Energy Southwestern Power Administration
Agreement Between United States of America and Southwest Power Pool, Inc.
(the “SPA Agreement”);
4c) The Eastern Interconnection Reliability Assessment Group; and
5d) All other Bilateral bilateral agreements between the Transmission Provider and
transmission systems to which the SPP Region is interconnected and which are
not identified in Section VIII of this Attachment O.do not participate in
Iinterregional Pplanning.
2) On an annual basis, the Transmission Provider shall review the ongoing planning
activities under the coordination agreements specified in this Addendum 1 to determine theany
need for any additional interregional studies. The Transmission Provider shall share this review
with the stakeholders at a planning summit and solicit input regarding any additional inter-
regional studies that should be initiated by the Transmission Provider.
3) Any Network Upgrade approved pursuant to the coordination agreements under this
Addendum 1 shall not be considered an approved Interregional Project pursuant to the
Interregional Planning Process identified in Section VIII of Attachment O.
2) SPP shall continue its efforts to formalize and improve seams
agreements with its neighbors and affected systems to facilitate
inter-regional and interconnection wide transmission planning and
expansion.
Effective Date: 7/26/2010 - Docket #: ER10-1960
ADDENDUM 3 TO ATTACHMENT O COORDINATED INTERREGIONAL
TRANSMISSION EXPANSION PLANNING WITH THE
MIDWEST INDEPENDENT TRANSMISSION SYSTEM OPERATOR, INC.
Pursuant to Section VIII of Attachment O, the Transmission Provider and the Midwest
Independent Transmission System Operator, Inc. (“MISO”) shall undertake coordinated
interregional transmission planning in accordance with the provisions of Article IX of the Joint
Operating Agreement between the Midwest Independent Transmission System Operator, Inc.
and Southwest Power Pool, Inc. (“JOA”). The agreement can be accessed at the following link:
[LINK HERE]
The objective of coordinated interregional transmission planning with MISO is to identify
potential Interregional Projects, calculate the benefits to each region and present that information
to the Transmission Provider and MISO. The process for Ccoordinated interregional
transmission planning between SPPthe Transmission Provider and MISO provides the process
for joint identification and analysis of proposed iInterregional transmission facilities pProjects
which may benefit the regions served by the Transmission Provider and MISO. The process
includes, but is not limited to:
i. Establishment of a joint planning committee and stakeholder committee;
ii. Establish vVoting procedures whereby proposed iInterregional transmission pProjects
may be approved for construction by both parties;
iii. Data exchange requirements;
iv. Coordinated system planning between the parties to identify and evaluate proposed
iInterregional transmission pProjects;
v. Determination of costs and benefits for each party; and
Cost allocation principles
vi. Construction and ownership of approved iInterregional transmission facilitiespProjects.
The result of coordinated interregional Transmission expansion planning process is to identify
potential Interregional Projects, calculate the benefits to each region and present that information
to the Transmission Provider and MISO. SuchAny proposed Interregional Projects shall be
reviewed by the Transmission Provider in accordance with Section IV.6 of this Attachment O.
The Transmission Provider will construct its part of any approved iInterregional transmission
pProjects in accordance with Section VI of this Attachment O. Any costs obligation of the SPP
Region related to Interregional Projects shall be allocated in accordance with Section VI of
Attachment J.The Transmission Provider shall evaluate A proposed interregional transmission
projects identified pursuant to this Addendum shall be reviewed by the Transmission Provider in
accordance with Section __IV.6 of Attachment O.
RTWG Reviewed 3-21-2013