Initial Allocation of Transmission Service under the NEPOOL OATT

08/08/02, DRAFT Revision for TC (Affiliate Consideration)

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Initial Allocation of Transmission Serviceunder the NEPOOL OATT

Recognizing that

certain procedures spelled out in the NEPOOL Open Access Transmission Tariff (NEPOOL OATT) depend on the queued time of a transmission request, and

all computer time clocks are not synchronized, and all Internet Providers do not offer the same quality of

service,

it is conceivable that many Transmission Customers (TCs) simultaneously submitting requests from various locations could end up with different request queue times.

There is also the issue of a Transmission Customer submitting the first request and asking for the full capability of the interface, thereby discouraging other TCs from requesting service across that particular interface.

As a result, an initial service allocation procedure will be enforced for Short-Term Transmission Service offered under the NEPOOL OATT.


All requests for Transmission Service received during an initial allocation request window of 30 minutes are treated as having been received simultaneously, with equal reservation priority.



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April 2000: Changes in Initial Allocations

The request window is being expanded Previously, 15-minute initial request window As of April 1, 2000, 30-minute initial request window

Non-Firm Hourly service will have an initial allocation


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Initial Allocations

Offered for the following types of service

Monthly Firm Weekly Firm Daily Firm

Monthly Non-Firm Weekly Non-Firm Daily Non-Firm

Hourly Non-Firm

The Initial Allocation is based on the initial 30 minutes that the “request window” is open for the requested service.

For Hourly Non-Firm Service, the 30-minute initial request window is 09:00:00 through 09:30:00 on the day that the transmission request window opens (i.e., two days prior to commencement of service)

For all other Service, the 30-minute initial request window is 00:00:00 through 00:30:00 on the day that the transmission request window opens.

In documents providing request timing tables, the request window begins at the time indicated as the “earliest request time.”


Allocation Rules: Timing

The date of the initial request window is given in documents accessible from the Transmission section of ISO’s Web site.

Relevant information is posted under the Tariff Specific Business Practices directory. From the Web page,

http://www.iso-ne.com/transmission/main.htmlgo to the Tariff Specific Business Practices directory.

Under Reservation Request Timing, the request windows are given for hourly, daily and monthly transmission service.

Under General Business Practices, there is a “Business Practices Section 2” document. The timing tables are the last two pages of this document. In the request timing tables the request window begins at the earliest request time.

There is also a hot link from the NRTG home page to the General Business Practices directory.


Allocation Rules: Timing Tables

Call the OASIS Desk if you are not sure which day the initial allocation will take place!

413-540-4240


Allocation Rules: Timing Info

During the initial allocation, ISO staff will contact the person identified as the Transmission Customer at the telephone number provided in the transmission reservation request on the OASIS.

A transmission customer may designate an alternate person and telephone number for ISO Staff to call during the morning of the initial allocation. This information should be provided in the comments field of the transmission request.


Allocation Rules: Who will be contacted

All requests will be reviewed in the order in which they have been received. Any INVALID requests will be marked INVALID. There is no guarantee that a request submitted during the initial request window will be reviewed before the end of the 30-minute initial request window.

If a customer wishes to be notified that a submitted request is INVALID, they can use the automatic notification feature of the OASIS. The OASIS allows each transmission customer to provide either an e-mail address or url address, and to indicate that any change of status should automatically be communicated to the supplied address. The Scheduler will NOT telephone a transmission customer to inform them that their request is INVALID.


Allocation Rules: Invalid requests

All valid requests received during the 30-minute initial request window will be marked as being under STUDY by ISO Staff.

The final allocation of Non-Firm Hourly Service will be determined as soon as practical, after the initial request window ends at 09:30.

The final allocation of all other service will be determined as soon as practical, after 08:00.


Allocation Rules: Initial request window

If the total amount of ATC requested by the TCs during the initial request window is equal to or less than the amount of posted ATC, all valid transmission requests received during that 30-minute period will be ACCEPTED following normal procedures and no initial allocation will be required.

If the total amount of ATC requested by the TCs in these transmission requests is greater than the amount of posted ATC, an allocation process will be initiated.


Allocation Rules: Total MWs requested

The allocation process identifies each TC requesting transmission service. In the event an individual TC has submitted more than one request, the TC will still be treated as a single entity for the purposes of the allocation.

***NEW LANGUAGE*** All Entities which are controlled by a single person (such as a corporation or a

business trust) which owns at least fifty percent of the voting shares of, or equity interest in, along with the single person, shall be collectively treated as a single Transmission Customer for purposes of the Initial Allocation Procedure. NOTE: The ISO must be informed within five (5) business days following any change in the status of an affiliated Transmission Customer(s).

The posted ATC will be equally allocated to each TC requesting service.

In the event a particular TC has requested ATC less than the allocation, ISO Staff will mark their request ACCEPTED and the incremental amount of ATC will be reallocated among the other requesting TCs.


Allocation Rules: The allocation of MWs

In the event a TC’s request is greater than the allocation amount, ISO Staff will contact that TC via a recorded phone line and offer a final allocation amount.

These TCs will have the option to either accept or refuse the offered allocation amount. If the TC refuses the allocation amount, ISO Staff will mark their request REFUSED. ISO Staff will NOT re-allocate the capacity to the remaining Participants. It will be re-posted as ATC.


Allocation Rules: The Allocations of MWs


If the TC agrees to accept the allocation amount less than the requested capacity, ISO Staff will mark the original request REFUSED and then post a new ACCEPTED transmission request for the TC with the same queued time as the original request and a modified capacity reflecting the allocation amount. The TC will be notified of the new reservation number on a recorded phone line.

Allocation Rules: Posting of reservation


The TC will be responsible for changing the status of the ACCEPTED reservation to either WITHDRAWN or CONFIRMED within the allowed customer response time indicated in the document, “ General Business Practices Section 2,” referred to earlier in this document.

At the end of the customer response time, any reservations remaining with a status of ACCEPTED will be RETRACTED by ISO staff. The capacity will then be re-posted as ATC.

Allocation Rules: Customer response


NO CALLS WILL BE MADE TO THE TC PRIOR TO CHANGING THE STATUS TO RETRACTED. The customer response time is counted from the time the ACCEPTED status is posted on the OASIS.

Since the response time for non-firm hourly requests is a very short amount of time -- 5 minutes -- all non-firm hourly transmission reservations re-posted by ISO staff will be posted as pre-confirmed. This means that the status will automatically go from ACCEPTED to CONFIRMED when posted by the ISO staff.

Allocation Rules: How it works (cont.)

There is 320 MW of Monthly Firm ATC available on the New York to New England Interface for the month of December. The following requests are received on June 1st between 00:00:00 and 00:30:00 by ISO Staff.

Queued RequestTime Company MW

00:01:00 A 10000:02:00 B 5000:10:00 C 5000:11:00 D 10000:29:00 A 125

425

The following is an Initial Allocation example:


08/08/02, DRAFT Revision for TC (Affiliate Consideration) 19

The requested capacity exceeds the ATC. This condition would result in an initial allocation. There are four companies requesting service. Company A has two transmission requests totaling 225 MW but will receive only a single company allocation.

The 320 MW of Monthly Firm ATC available on the New York to New England Interface would be allocated to the four companies as follows:

320 / 4 = 80 MW per company

Queued Request AllocatedTime Company MW MW

00:01:00 A 100 8000:29:00 A 12500:02:00 B 50 8000:10:00 C 50 8000:11:00 D 100 80

425 320



In this case, the allocated capacity per company exceeds the capacity requested by Companies B and C. These two companies would have their initial transmission requests for 50 MW ACCEPTED and the balance of 60 MW total would be reallocated to the remaining two companies.

60 / 2 = 30 more MWs per company80 + 30 = 110 MW per company

Initial RevisedQueued Request Allocation AllocationTime Company MW MW MW

00:01:00 A 100 80 11000:29:00 A 12500:02:00 B 50 80 5000:10:00 C 50 80 5000:11:00 D 100 80 110

425 320 320


In this case, the revised allocated capacity per company exceeds the capacity requested by Company D. Company D would have its initial transmission request for 100 MW ACCEPTED and the balance of 10 MW would be reallocated to the remaining company.


Initial Revised FinalQueued Request Allocation Allocation AllocationTime Company MW MW MW MW

00:01:00 A 100 80 110 12000:29:00 A 12500:02:00 B 50 80 50 5000:10:00 C 50 80 50 5000:11:00 D 100 80 110 100

425 320 320 320

Customer A has two requests totaling 225 MW. ISO Staff would contact the Customer who would be given the option of accepting the final allocation (120 MW) or withdrawing one or both requests.


Initial Allocation of Transmission Service under the NEPOOL OATT

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