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2008 Network Open Season Bulletin
This Bulletin describes procedures for participation in the 2008 . Except as noted, all requirements specified in BPA Transmission Services' business practices remain in effect and shall apply to NOS.
|Table of Contents
|B. Precedent Transmission Service Agreement Offer
|C. BPA Transmission Services Obligations
|D. Customer Obligations
|E. Service Duration
|G. BPA Transmission Services' Acceptance
|H. and Financial Evaluation
|I. Record of Decision (NEPA ROD)
|J. Facility Construction
|K. Processing of TSRs & Authorizations During NOS
|L. Special Terms
|M. Suspension of Linked Transmission & Generation Requests
OATT Reference: Sections 19.10; 32.6
A. Customer Eligibility
- TSRs over the BPA Network and which are submitted on webSmartOASIS by 5 p.m. PDT on May 15, 2008, are eligible for the 2008 NOS.
- A Customer requesting Point-to-Point (PTP) Transmission Service on the BPA Network is eligible for the 2008 NOS.
- A Customer with a Network Integration (NT) Transmission Service Agreement that has requested the addition of a new Network Resource or a new Network Load is eligible for the 2008 NOS.
- All deficiencies in a , including receipt of the application deposit, must be remedied in order for the TSR to be eligible for a .
- Only TSRs as described in the steps above and that request service over network segment facilities are eligible. Requests for service over the Montana and California Interties (Northwest AC Intertie and PDCI) are ineligible.
B. Precedent Transmission Service Agreement Offer
- BPA Transmission Services shall offer a PTSA for each eligible TSR. The PTSA consists of two parts:
- The main body, which describes BPA Transmission Services’ and Customer requirements and obligations; and
- The SA attached as Exhibit A, which describes the terms of such service per the Customer’s webSmartOASIS TSR. The SA will be entered into by the Customer and BPA when both parties have signed the SA.
- BPA Transmission Services will provide two copies each of a PTSA and SA for each eligible TSR.
C. BPA Transmission Services Obligations
- BPA Transmission Services will:
- Conduct a NOS process at least annually.
- Offer a PTSA to all Customers with a Network TSR in the webSmartOASIS Queue.
- Evaluate Available Transfer Capability (ATC) to determine whether the Customer’s TSR may be served in its entirety, or a partial amount made per the Customer election in the SA.
- Perform a Cluster Study to identify transmission system impacts, new facility requirements and costs.
- Make the rolled-in rate determination, or an offer of Conditional Firm service, no later than eight months from the NOS Deadline, unless otherwise agreed by BPA Transmission Services and the Customer.
- Complete the NEPA ROD, or make an offer of Conditional Firm service, no later than 36 months from the rolled-in rate determination, unless otherwise agreed by BPA Transmission Services and the Customer.
- After satisfaction of requirements and decision to build per Section 5 of the PTSA, construct new facilities or facility upgrades as necessary to provide the Customer’s requested service.
- Nothing in this Bulletin alters any of BPA Transmission Services’ rights and obligations specified in the PTSA or SA. In the event of a conflict between the terms of this Bulletin and the PTSA or SA, the PTSA or SA controls.
D. Customer Obligations
- The Customer must sign both copies of PTSA and SA, and return one copy of the PTSA and both copies of the SA to BPA Transmission Services by the or the status of the corresponding TSR in webSmartOASIS will be changed to DECLINED.
- The Customer must provide and maintain the required Security in accordance with the Security Requirement section below.
- The Customer must conform its TSR in webSmartOASIS and revise the SA in accordance with BPA Transmission Services' Acceptance section below in order to facilitate execution of the SA.
- Nothing in this bulletin alters any of the Customer’s rights and obligations specified in the PTSA or SA. In the event of a conflict between the terms of this Bulletin and the PTSA or SA, the PTSA or SA controls.
- BPA expects Customers to meet the prescribed deadlines and requirements prescribed in the PTSA and 2008 NOS Bulletin.
- In the event of a delay, BPA will contact the Customer, assess the situation and determine the appropriate action and remedies at that time.
- A delay or failure to comply which results in adverse impact on revenue commitment is a primary factor that BPA will consider to decide whether the Customer's action or inaction constitutes material breach resulting in forfeiture of Security.
E. Service Duration
- A Customer may extend its initial requested service duration at the time it signs the PTSA and SA without filing a new application by designating the extended period in the SA.
- If a Customer extends its service duration, BPA Transmission Services will note this change in the seller comment field on the TSR on webSmartOASIS.
F. Security Requirement
- All Customers must provide Security unless they meet the exceptions specified in the PTSA Sections 3(e)(1) or 3(e)(2).
- BPA Transmission Services will notify the Customer as soon as practicable prior to the June 27, 2008 deadline for providing Security, if the Customer is not required to provide Security pursuant to Section 3(e)(2) of the PTSA.
- Security Calculation
- Long-Term Firm Transmission Service
- For PTP Customers, the NOS Security Deposit shall equal the requested PTP Reserved Capacity, and using the Long-Term Firm rate per Section II.A of the PTP-08 rate schedule, not including Ancillary Services, applied to one year of requested Transmission Service.
- Long-Term Network Transmission Service
- For Network Customers not meeting the exception per the Processing of TSRs and ATC Authorization during NOS section, step 1.b below, the NOS Security Deposit shall be the charge in Section II.A per the NT-08 base rate, not including Ancillary Services, applied to projected Transmission Service for one year. The Customer and its Account Executive will determine the appropriate billing factors.
- Security Options: Customers may make a Security Deposit by (a) providing a Letter of Credit, (b) depositing funds directly with BPA, or (c) establishing an Escrow Account.
- Letter of Credit: Please contact BPA at the following address for further instruction for Letter of Credit requirements:
|Bonneville Power Administration|
|905 NE 11TH Ave.|
|Portland, OR 97232|
|Phone: (503) 230-3498|
|Fax: (503) 230-4160|
|Attn: Credit Manager, DBC-3|
- Deposit Funds Directly with BPA
- Funds deposited with BPA shall earn no interest.
- Wire transfer process:
|For instructions to pay the Security Deposit by electronic transfer to BPA, either through FedWire or Automated Clearing House (ACH), contact your Account Executive or check “How to Pay BPA” http://www.bpa.gov/corporate/business/how_to_pay/ on BPA’s website.|
|When using FedWire, after “OBI=” include the words “Transmission Network Open Season Security Deposit.”|
|When using the ACH type of electronic transfer, include the same information in the “memo” field on the transfer.|
|BPA Transmission Services will not declare the Security Deposit Invalid if a bank removes information from the “OBI” or “memo” field.|
- Deposit Funds into an Escrow Account
- Escrow Account and related Escrow Agreement (Agreement) must be with a federally chartered financial institution specified by BPA, which shall act as Escrow Agent or Trustee (Trustee) for the Customer. For a list of the institution(s), please contact the Fee Administrator at the following address:
|Bonneville Power Administration|
|Mail Stop TSRM /TPP-2|
|PO Box 61409|
|Vancouver, WA 98666-1409|
|Bonneville Power Administration – |
|Organization Mailstop: (e.g. TSE/TPP-2; TPC/TPP-4, TPP/OPP-3)|
|905 NE 11th Avenue|
|Portland, OR 97232|
|Phone: (360) 619-6705|
|Fax: (360) 619-6940|
|Email address: firstname.lastname@example.org|
- Escrow Account requirements
- Customer shall ensure that the Trustee notifies BPA of the Trustee’s receipt of the deposited funds when deposited, but by no later than the date specified in the PTSA.
- Customer is solely responsible for the setup costs and administrative fees associated with the Escrow Account.
- Customer shall place the required deposit for each PTSA and associated TSR, in the amount specified by BPA, into the Escrow Account.
- Additional deposits for separate PTSA/TSR(s) may be made into the existing Escrow Account, but shall be separately identified and accounted for in a sub-account.
- Customer shall acknowledge in the Agreement that BPA is the third party beneficiary of the Escrow Account.
- Customer shall be entitled to receive all interest earned on the deposited funds during the period the funds are escrowed. Distribution shall be determined by agreement between the Customer and the Trustee.
- Release of Security Deposit
- Security will be released consistent with the terms of Section 7(a) of the PTSA. In the event of any partial service award pursuant to the Special Terms section,step 4 below, the release of Security for PTP service after 180 days (6 months) will be the ratio of the actual service in MW month to the service at full requested demand in MW month, times the amount of Security originally provided by the Customer.
G. BPA Transmission Services’ Acceptance
- Queue Update and ATC Determination
- After BPA Transmission Services has received the Security Deposits from Customers that sign and return PTSAs and SAs, BPA Transmission Services will update the webSmartOASIS Queue and removing those TSRs associated with PTSAs that were not signed and returned by the NOS Deadline or for which the required Security was not provided (webSmartOASIS status becomes DECLINED).
- BPA Transmission Services’ Reservation Desk will authorize ATC in queue order, for those TSRs where ATC is determined to be available and forward pertinent information to the Customer’s Account Executive.
- TSR Conformance upon authorization of ATC for a full service award
- Upon authorization of ATC, the Customer’s Account Executive will notify the Customer and provide instructions on how to conform the TSR, if the Start and/or Stop Dates have been modified at the time of authorization. If the authorized TSR does not require conformance, the Customer’s Account Executive will initial Section 1(c) of the two original copies of the Customer’s SA, and send them to the Customer. The Customer will follow the procedures in 2.d and 2.e below.
- The Customer will submit a new preconfirmed TSR, which will include new Start and Stop Dates (if applicable) and enter the Customer’s existing TSR number in the Deal Ref field of the new preconfirmed TSR for cross reference.
- BPA Transmission Services’ Reservation Desk will validate the new preconfirmed TSR and notify the Customer’s Account Executive, who will update and initial Section 1(c) of the original SA and forward the two original copies to the Customer.
- The Customer shall, within 15 calendar days of receipt of the two original copies of the SA, initial Section 1(c) and return both copies to the BPA Transmission Services either by:
|US Postal Service to:|
|Bonneville Power Administration|
|Transmission Sales – TSE-TPP-2|
|P.O. Box 61409|
|Vancouver, WA 98666-1409|
|Bonneville Power Administration – |
|Organization Mailstop: (e.g. TSE/TPP-2; TPC/TPP-4, TPP/OPP-3)|
|905 NE 11th Avenue|
|Portland, OR 97232|
|Required Telephone Number (360)619-6080|
|Fax: (360) 619-6940|
- If the Customer returns the SA by fax or email, BPA Transmission Services must receive the hard copies of the SA within five Business Days after the date of the fax or email.
- TSR Conformance upon authorization of ATC for a partial service award
- Upon authorization of ATC for a partial service award, the Customer’s Account Executive will notify the Customer and provide instructions on how to conform the TSR.
- The Customer will submit a new preconfirmed TSR, which will include new Start and Stop Dates (if applicable), a demand level matching the newly authorized partial amount, and use the Customer’s existing (Parent) TSR AREF number in the Deal Ref field for cross reference.
- At the same time the Customer submits the preconfirmed TSR, the Customer will also submit a for the unexecuted portion of its Parent TSR, using the same /, /, and Start/Stop Date information as the Parent TSR; and a reduced demand level such that the combination of the demand levels for the new preconfirmed and Remainder TSRs is consistent with the original demand level of the Parent TSR. The Customer will enter the Parent TSR AREF number into the Deal Ref field of the Remainder TSR for cross-reference and to preserve the original Queue Position.
- BPA Transmission Services’ Reservation Desk will validate both the new preconfirmed and Remainder TSRs and notify the Customer’s Account Executive, who will update and initial Section 1(c) of the original SA to reflect the award and forward the two original copies to the Customer.
- The Customer’s Account Executive will also forward to the Customer two copies of a new SA that reflects the Remainder TSR, and which will replace the original SA attached to the Customer’s PTSA.
- The Customer shall within 15 calendar days of receipt, initial Section 1(c) of both copies of the original SA, sign both copies of the new SA that reflects the Remainder TSR, and return them to the BPA Transmission Services.
- For awards of partial demand service, the Customer may elect a new minimum MW threshold in Section 1(b)(3) of the SA that reflects the Remainder TSR.
- The Customer will return all SA copies as described above.
- BPA Transmission Services’ Acceptance
- Within two Business Days of receipt and verification of the two initialed copies of the SA returned by the Customer, BPA Transmission Services will accept the webSmartOASIS TSR and will sign the SA. One copy will be returned to the Customer. For Partial Service awards, BPA Transmission Services will retain the two Customer-signed SA copies associated with the Remainder TSR and attached to the Customer’s PTSA.
- Later Determination of ATC During the Term of the PTSA
- If at any time during the term of the PTSA, BPA Transmission Services determines that ATC is available to satisfy a TSR, steps 1.b - 2.a will apply.
- Construction Activities
- If ATC has not been previously available to serve the full amount requested by the Customer, at such time that BPA Transmission Services has satisfied the requirements in Section 5 of the PTSA and made the determination to begin construction activities, it shall give the Customer notice pursuant to Section 5(f) of the PTSA. This notice will include the projected Start Date and Stop Date based on such construction and the parties will proceed pursuant to the steps above.
- In the event the Start Date must be revised due to a change in the construction schedule, the Customer must initial the revised date in the SA and conform its TSR.
- BPA Transmission Services may offer Conditional Firm service as a bridge prior to firm transmission service, which the Customer is under no obligation to accept. Upon the commencement of firm service, Conditional Firm service will terminate.
H. Cluster Study and Financial Evaluation
- BPA Transmission Services will conduct a Cluster Study of all TSRs in the 2008 NOS process in accordance with the terms of the OATT and PTSA.
- There will be no charge to a Customer with an executed PTSA for Cluster Studies conducted on TSRs as part of the 2008 NOS.
- Evaluation of costs and revenues under the Commercial Infrastructure Financing Proposal (CIFP):
- Such financial evaluation will be completed in accordance with the posted process, to determine whether service can be provided at the rolled-in rate.
- Final rate determination is to be completed no later than eight months following the NOS Deadline unless otherwise agreed by BPA Transmission Services and the Customer.
- Disposition of SIS and SFS agreements where the SIS/SFS agreements are in place prior to the 2008 NOS:
- Individual SIS and SFS Study Agreements are suspended effective March 26, 2008 (date of the 2008 NOS Notice) and no further charges will be made to the work order during the suspension period.
- Where the Customer signs the PTSA, the SIS and SFS agreements will be terminated immediately following the queue update. Any unspent advance for the SIS and SFS agreements will be refunded to the Customer.
- If the Customer fails to sign the PTSA, the SIS/SFS agreements will be terminated. BPA Transmission Services will Decline the TSR, and any unexpended advance for SIS and SFS study agreements will be refunded to the Customer.
- For TSRs received after May 15, 2008, BPA Transmission Services intends to assess system impacts and required facilities by performing Cluster Studies. BPA Transmission Services will conduct individual SIS/SFS studies only upon Customer request.
I. NEPA Record of Decision (NEPA ROD)
- BPA is responsible for satisfying obligations under NEPA for new facilities and upgrades that are necessary to provide service. The PTSA, Section 5(d), describes BPA’s NEPA obligations.
- BPA will bear the costs of environmental studies and review under NEPA where it is determined that new facilities and upgrades that are necessary to provide service can be provided at Rolled-in Rates per the Cluster Study and Financial Evaluation section above, step 4.b.
J. Facility Construction
- BPA Transmission Services will arrange for financing for the construction of facilities. Customers are not required to advance capital for facility construction.
- BPA Transmission Services will plan, design and build the required facilities, subject to satisfying its obligations under the PTSA, including deciding to build required facilities after completing its NEPA obligations.
K. Processing of TSRs and ATC Authorizations during NOS
- In order to integrate its existing business practices with the NOS process, BPA Transmission Services is processing of TSRs as follows:
- ATC Authorizations and the offering of new SIS/SFS agreements have been suspended (see 2008 Network Open Season Notice, dated March 26, 2008).
- Requests for assignments, rollovers and deferrals of existing SA during NOS will be processed in accordance with existing business practices.
- Requests for Redirects
- BPA Transmission Services will grant requests for Redirects of TSRs that are subject to a PTSA in accordance with its Redirect Business Practice and the procedures contained in the ATC Methodology Document as follows:
- Where ATC is available, BPA Transmission Services will offer and the Customer must return the signed PTSA and SA, the Security requirements shall not apply, and BPA Transmission Services will sign the SA at any time after the Customer submits the signed PTSA and the processes described in the Redirect Business Practice are completed. A Customer may not extend its service duration where a PTSA is offered for a .
- Where ATC is not available, BPA Transmission Services will offer and the Customer must return the signed PTSA and SA, the Security requirements do apply, and the Customer’s TSR will be considered with all other Eligible TSRs in the 2008 NOS process. Partial service election is not applicable where full ATC is available and offered under the PTSA.
- In the event BPA Transmission Services determines that there was sufficient ATC available prior to April 15, 2008, to serve the full demand of a TSR, it shall notify the Customer in the cover letter of its offer, in which case the Customer must sign the PTSA and SA. For these specific TSRs, BPA Transmission Services shall make the following exceptions:
- The Security Deposit requirements in Section 3(e) of the PTSA shall not apply.
- For TSRs with service duration of less than five years, the five year Reservation Priority (Rollover Right) requirement per the Special Terms section, step 1 below, shall not apply.
L. Special Terms
- Reservation Priority (Rollover Rights): Customers signing a PTSA and with five or more years of transmission service (service duration) have the right to continue to take service (rollover) at the end of their contract. The Customer may extend its service duration (see Service Duration section above). Customers signing a PTSA and with less than a five year service duration do not have reservation priority.
- Redirects: The NOS 2008 PTSA provides that BPA Transmission Services may, only upon a 24 month notice, modify its ATC Methodology to change or remove the methodology for evaluating Redirect and NT modification of service request, where such modification has an adverse impact on the Customer’s ability to redirect. According to the PTSA, such notice shall not apply where BPA is subject to mandatory reliability standards or FERC compliance order where failure to comply would otherwise subject BPA to penalties or denial of an acceptable reciprocity tariff, in which case BPA Transmission Services may modify such methodology by the deadline for compliance.
- Issuance of the 24-Month Notice/Treatment of Redirect and
pending Queued Requests during the Notice Period and after the
Notice Period Expires: Transmission Services issued the 24-
month notice that it is modifying its ATC Methodology, effective
April 1, 2011, pursuant to the requirements cited to in the Redirect section
2, above. The notice period has been extended by approximately two months and will now expire at 5 PM, PDT, May 31, 2013.
- Upon expiration of the Notice Period on May 31, 2013, Redirect Requests of a CONFIRMED Parent will be processed and evaluated for ATC
pursuant to the current Transmission Services ATC Methodology regardless of whether such request is associated with a PTSA. Upon
expiration of the Notice Period, pending queued requests
associated with a 2008 PTSA will no longer be able to modify their
Network PODs until such time as they become a CONFIRMED reservation.
- For TSRs where a on the BPA Network is being requested by the Customer, refer to the Requesting Transmission Service Business Practice.
- Partial Service
- Partial Demand Service
- The Customer may make an election in Section 1(b)(3) of the SA to specify whether it will accept a partial demand service amount and the minimum MW amount it will accept.
- If the Customer elects to accept a partial demand service award and specifies a minimum MW amount, it is obligated to take any offer of service equal to or exceeding the minimum MW amount specified.
- Partial Term Service: BPA Transmission Services will not analyze for or develop specific business practices to define Partial Term Service awards at this time. However, BPA Transmission Services will consider an offer if determined to be consistent with criteria including the Customer’s commitment based on Service Duration, the Customer maintaining its Right of First Refusal rights on its requested Termination Date, and workable treatment for the remainder TSR on webSmartOASIS.
- General Provisions for Partial Service
- TSR Conformance: BPA Transmission Services and the Customer shall follow the partial service TSR conformance procedures described in Transmission Service' Acceptance section above.
- Release of Security: In the event of a partial service award, within 180 days of the commencement of either Conditional Firm or Firm service, and in accordance with Section 7(a) of the PTSA, BPA Transmission Services will release a pro-rata share of the Customer’s Security.
- Release of Security for Partial Service
- Terms for the release of Security in the event of partial service are described the Security Requirement section above.
- Transfer and Assignment
- In the event a Customer would desire to assign its PTSA/SA to a new successor in interest and prior to the time the SA is signed by BPA, such Transfer is subject to the consent of BPA Transmission Services, including the conditions in this section.
- In order to accommodate such Transfer on written notice from the Customer, the Customer’s Account Executive will communicate to the Customer procedures relating primarily to the following criteria: (i) the new successor in interest is qualified as an Eligible Customer, including creditworthiness, PTP Enabling Agreement, and all required registrations such as OATT, (ii) the new successor in interest to comply with all other NOS requirements, such as the provision of required Security, and (iii) completion of steps necessary for the transfer of the Customer’s TSR.
- The Customer shall have completed the procedures referred to in step 5b above, at least 60 days prior to the effective date of the Transfer.
- Assignment of the SA: After BPA has signed the SA, the Customer may assign in accordance with the OATT.
- Once the Customer submits the Transfer TSR on webSmartOASIS, the must submit the Security within 10 Business Days. If the Assignee fails to submit the Security within 10 Business Days, the status of the Transfer TSR will be moved to DECLINED.
- Generator Interconnection Linkage:
- BPA Transmission Services will offer a PTSA to Customers with a linked Generator Interconnection Request, but the Customer is not required to sign the PTSA and SA in order to remain in the webSmartOASIS Queue.
- Unless a PTSA and SA are signed, the requested transmission service will not be included in the Cluster Study and the Customer will be required to individually execute and fund separate study agreements, including NEPA, and to advance fund any required construction.
- Notwithstanding a and b above, no new linked Generator Interconnection Requests will be accepted. BPA Transmission Services is suspending its linkage rules as described in the Generator Interconnection – Large, and Long-Term Firm Queue Management Business Practices for the 2008 NOS.
- Deferral Competitions Involving 2008 PTSAs
- 2008 PTSAs as Defenders
- Transmission Services will initiate a competition with a 2008 PTSA as the when all of the following conditions are met:
The 2008 PTSA is the next deferral in Transmission Service’s deferral queue to be competed as a Defender;
The is the highest-queued request that would be enabled, in full or in part, by a release of the Defender’s capacity, in full or in part;
The Challenger’s requested start date is earlier than the Defender’s deferred start date;
The Challenger does not have a PTSA;
The Challenger is an original request for service;
The capacity of the Challenger must equal or exceed the amount of capacity the Defender must release to enable the Challenger; and
If the term of the Defender is five years or more, the term of the Challenger must be a minimum of five years. If the term of the Defender is less than five years, the term of the Challenger must equal or exceed the term of the Defender.
- If the conditions in 7.a.i above, are met, Transmission Services will conduct the competition pursuant to the competition procedures set forth in the Deferral Service (Extension of Commencement of Service) Business Practice, as amended or superseded. Transmission Services conducts deferral competitions sequentially in queue order.
- If these conditions are not met, Transmission Services will evaluate the next queued deferral for competition pursuant to its Deferral Service Business Practice, as amended or superseded.
- 2008 PTSAs as Challengers
- Customers with 2008 PTSAs are eligible to compete as Challengers in deferral competitions, except where the Defender is also a 2008 PTSA.
- If a Customer with a PTSA and SA in the webSmartOASIS is identified as a Challenger for ATC that is eligible for competition due to a , the Customer’s PTSA and SA serves as the for purposes of the Deferral Service Business Practice.
BPA Transmission Services will offer the Challenger a new SA to include a provision stating that the Challenger cannot request deferrals for that SA.
The Challenger must take both of the following actions within 15 calendar days from receipt of the new SA offered by BPA Transmission Services:
Sign and return the new SA to BPA Transmission Services.
Submit a request over webSmartOASIS.
If the Challenger fails to take either of the actions described in step c above, the Challenger's will remain in the webSmartOASIS Queue and will not be considered for any future competitions.
- Customer Option Relating to Service Duration
- Credit will be applied, if so directed by the Customer, against the Customer’s service duration obligation, in accordance with Section 6(a) of the PTSA
M. Suspension of Linked Transmission and Generation Requests
- BPA Transmission Services has a cycle of Network Open Season (NOS). For all requests participating in NOS, BPA Transmission Services prohibits Customers from linking Transmission Service Requests to a Generation Interconnection Request.
- Therefore, for all requests participating in a Network Open Season, BPA Transmission Services has suspended implementation in its business practices related to linkage:
- Generator Interconnection-Large,
- Generator Interconnection- Small
- Long-Term Firm Queue Management
- Network Open Season Bulletin 2008
- Network Open Season Bulletin 2009
- Network Open Season Bulletin 2010