Transmission Customer Forum Operating Agreement Update Cheryl Johnson 9/21/06.

Transmission Customer Forum

Operating Agreement Update

Cheryl Johnson9/21/06

Operating Agreement Update

It’s time to update the Operating Agreements

Some older Operating Agreements may need updating.Some sections are out of date:

– Contact Information– Computer Technical Specifications– Communication Requirements

Operating Agreement Background

Operating Agreement Update Process– Create Updated Operating Agreement Template

• Communicate draft changes during Customer Forum.• Communicate draft changes to each plant and solicit input.• Incorporate input to create new Operating Agreement template.

– Using new template, provide new draft agreements to each plant.

• Work with each plant to add site specific information.• Incorporate changes and execute.• Update contact and other information as needed and review at least

annually.

– Required per the Interconnection Agreement.– Specify operating practices, contact info, communication protocol, etc.

Operating Agreement Template

OPERATING AGREEMENT

BETWEEN

[Interconnected Facility]

AND

_____________________ POWER COMPANY

TABLE OF CONTENTS I. GENERAL......................................................................................................................................................... 2 II. OPERATING REQUIREMENTS ..................................................................................................................... 3 III. NORMAL CONNECTIONS AND OPERATIONS OF COMPANY FACILITIES......................................... 5 IV. COMPANY ACCESS TO THE COMPANY’S ELECTRICAL FACILITIES................................................. 5 V. NORMAL CONNECTIONS AND OPERATIONS OF [GENERATOR/ CUSTOMER] FACILITIES .......... 5 VI. AUTOMATIC OPERATIONS OF THE COMPANY FACILITIES ................................................................ 6 VII. AUTOMATIC OPERATIONS OF THE [GENERATOR/CUSTOMER] FACILITIES................................... 6 VIII. MAINTENANCE PROCEDURES ON COMPANY FACILITIES.................................................................. 6 IX. MAINTENANCE PROCEDURES ON [GENERATOR/CUSTOMER] FACILITIES .................................... 6 X. AGREEMENT RETENTION AND MODIFICATION .................................................................................... 7 EXHIBIT 1 – NOTIFICATION PROCEDURE CONTACTS..................................................................................... 8 EXHIBIT 2 – COMPANY SINGLE LINE DRAWING .............................................................................................. 9 EXHIBIT 3 – [GENERATOR/CUSTOMER] SINGLE LINE DRAWING............................................................... 10 EXHIBIT 4 – LINEMAN’S HOLD TAG .................................................................................................................. 11 EXHIBIT 5 - TECHNICAL SPECIFICATIONS FOR PERSONAL COMPUTER (PC) WORKSTATION............ 12 EXHIBIT 6 – COMMUNICATION REQUIREMENTS ........................................................................................... 13 EXHIBIT 7 – GENERATOR RAMPING STANDARDS AND GUIDELINES ....................................................... 14

This Operating Agreement (“Agreement”), between [Generator/Customer] (hereinafter called the “[Generator/Customer]”) and [Company Name] Power Company (hereinafter called the “Company”), is entered into this ______ day of ____________ in the year 20___. [For FERC Interconnection Agreements Only]: The purpose of this Agreement is to implement certain of the parties’ requirements in the [TITLE OF INTERCONNECTION AGREEMENT] (“Interconnection Agreement”) regarding information sharing, the development of operating procedures, and the general requirement to conform operations to Good Electric Practices and NERC Standards. [For non-FERC Generators and load-only entities]: The parties have entered into a Contract for Electric Services (“Contract”), and the purpose of this Agreement is to identify commonly needed information that is necessary to implement the Contract and clarify certain operating procedures in accordance with “Good Electric Utility Practices.”

I. GENERAL

[This paragraph will need to be revised for load-only customers]. The [Company Name] Company operator (“Company Operator”) is located in the [Company Location]. The

Most Operating Agreements look

something like this.

Changes will be mostly to Exhibits to update contacts and

computer info.

Sample Update to Contacts

[Generator/Customer] [The Company] Operating Committee Members

Generator Operator Company Transmission Operator (Real-time Operations)

Primary: Alabama Control Center (ACC) – Mobile Region Desk (example)

1-888-223-XXXX (example) (205) 257-XXXX (example)

Alternate: Alabama Control Center - Systems Operations Desk (example)

(205) 257- XXXX (example)

Plant Manager Southern Control Area Operator (Real-time Operations)

Balancing Desk: Primary (205) 257- XXXX Southern Linc 1*15* XXXX

Other Contacts Key Planning/Administrative Contacts

ACC Operations Support: Gary Gorham (205) 257- XXXX

PCC System Operations:

Jim Griffith (205) 257- XXXX PCC Operation Planning:

Dushaune Carter (205) 257- XXXX Cheryl Johnson (205) 257- XXXX Doug McLaughlin (205) 257- XXXX

Sample Update to Computer Specs

EXHIBIT 5 - TECHNICAL SPECIFICATIONS FOR PERSONAL COMPUTER (PC) WORKSTATION

The client workstation must have network connectivity by modem (Internet Service Provider) or company network (i.e., access to the Internet). The workstation should meet the minimal requirements for Windows 98/ NT 4.0.

The following list describes the minimum hardware requirements for Windows 98:

A personal computer with a 486DX 66 megahertz (MHz) or faster processor (Pentium central processing unit recommended).

16 megabytes (MB) of memory (24 MB recommended). One 3.5-inch high-density floppy disk drive. VGA or higher resolution monitor (16-bit or 24-bit color SVGA recommended). Internet access requires a 28.8 bits per second (bps) modem (56.6 or faster recommended).

BEFORE:

EXHIBIT 5 - TECHNICAL SPECIFICATIONS FOR PERSONAL COMPUTER (PC) WORKSTATION

The client workstation must have high speed network connectivity (i.e., access to the Internet). The workstation should meet the minimal requirements for prevailing Windows operating systems.

AFTER:

Reflect Change to GENCOMM

EXHIBIT 6 – COMMUNICATION REQUIREMENTS

1. Send by 10 a.m. each day via SECON*, or fax if SECON is not working, to the

Control Area Operator & Company Operator an hour by hour schedule of generation output for the next day. Utilize the attached format.

2. Notify via SECON* or phone, if SECON is unavailable, the Control Area Operator & Company Operator at least one hour prior to generation coming online.

3. Notify via SECON* or phone, if SECON is unavailable, the Control Area Operator & Company Operator if there is a sudden shift or expected change in generation of greater than 50Mw.

4. Notify via SECON* or phone, if SECON is unavailable, the Control Area Operator & Company Operator at least 30 minutes prior to generation coming off line.

5. For Control Area Scheduling Post Analysis, send via SECON* or FAX (205-257-5533), a final run-schedule for the previous day by 0600 the following day.

* Do not send a SECON message and then call the Control Area Operator & Company Operator. A call is necessary only if acknowledgement of the SECON message is not received.

BEFORE:EXHIBIT 6 – COMMUNICATION REQUIREMENTS

Send by 10 a.m. each day via GENCOMM*, or fax if GENCOMM is not working, to the Control Area Operator and the Company Operator an hour by hour schedule of generation output for the next day. Utilize the following format:

1. Notify via GENCOMM* or phone, if GENCOMM is unavailable, the Control

Area Operator and the Company Operator at least one hour prior to generation coming online.

2. Notify via GENCOMM* or phone, if GENCOMM is unavailable, the Control Area Operator and the Company Operator if there is a sudden shift or expected change in generation of greater than 50Mw.

3. Notify via GENCOMM* or phone, if GENCOMM is unavailable, the Control Area Operator and the Company Operator at least 30 minutes prior to generation coming off line.

4. For Control Area Scheduling Post Analysis, send via GENCOMM* or FAX (205-257-5533), a final run-schedule for the previous day by 0600 the following day.

* Do not send a GENCOMM message and then call the Control Area Operator and the Company Operator. A call is necessary only if acknowledgement of the GENCOMM message is not received.

AFTER:

Summary/Next Steps• Email Generic Agreements for customer review.• Incorporate input into new template.• Email site specific agreements to each plant.

– Hold conference calls or schedule meetings as needed.– Iterative Process.

• Sign Updated Operating Agreements.• Review Operating Agreements on an annual basis and update

contact info as needed.

II . OPERATING REQUIREMENTS

[Include this section only for generators with FERC Interconnection Agreements or for non-FERC generators on a case-by-case basis.]. Unless otherwise modified, in writing, by the Operating Committee formed pursuant to Section 15 of the Interconnection Agreement, the following operating procedures and requirements shall apply:

a. The "official name" of generating facility for communication purposes is [Official Name].

b. The "official operator" of the generating facility is [Official Operator].

c. The Generator shall provide the following generation information annually:

1. Net dependable, seasonal MW and MVAR capacity of facility 2. Emergency peak-firing capability (power augmentation) 3. Alternate fuel capability (fuel switching) 4. Generating unit(s) ramp rates (e.g., normal cold start…quick hot start) 5. Definition of cold, warm, hot starts (term on turning gear)

d. The Generator and the Control Area Operator shall provide the following communication equipment and information for their respective facilities:

1. Personal Computer (PC) with an internet service provider (ISP) and control room e-mail address (Exhibit 5 - Technical Specs)

e. E-mail (GenComm) shall be the primary communication path for daily operation messages and serve as official operating documentation and should be continuously monitored. Even after a phone conversation has taken place, a follow-up e-mail with all necessary details shall be transmitted. The required communications procedures are provided in Exhibit 6.

f. The Generator shall notify the Control Area Operator and the Company Operator one-hour in advance of any unit start-up.

g. The Generator shall notify, as soon as possible, the Control Area Operator and the Company Operator of any unit de-rating, forced outage or unplanned outage.

h. The Generator shall notify the Control Area Operator and the Company Operator if the plant is to be unmanned at any time.

i. The Generator shall submit and coordinate an annual maintenance schedule to the Control Area Operator and to the Company sixty (60) days prior to the Generator’s commercial operation date and annually thereafter and any subsequent revisions to the submitted schedule.

j. The Generator shall allow the Control Area Operator exclusive control of the generating facility if an "Emergency" is declared pursuant to Section 1.7 of the Interconnection Agreement.

k. The Control Area Operator shall submit a weekly generation voltage schedule to the Generator. The Company’s Operator will be responsible for verifying that the Generator maintains an acceptable voltage profile in accordance with Southern Company Bulk Power Operations procedure BPO-1, Voltage Schedules in the Southern Control Area (SCA).

Reminder of Key Provisions

e. E-mail (GenComm) shall be the primary communication path for daily operation messages and serve as official operating documentation and should be continuously monitored. Even after a phone conversation has taken place, a follow-up e-mail with all necessary details shall be transmitted. The required communications procedures are provided in Exhibit 6.


• Use GENCOMM as the primary communication path.

• GENCOMM serves as the official operating documentation.

• Follow-up phone conversations with a GENCOMM message. – Include all necessary details.


• Generators shall notify the Control Area Operator of any deviation from its annually reported planned outage schedule.

• To keep the Control Area Operator apprised of the availability of generation resources across the transmission system.

• To ensure that the Control Area Operator has an inventory of generation to call upon in an emergency situation.

g. The Generator shall notify, as soon as possible, the Control Area Operator and the Company Operator of any unit de-rating, forced outage or unplanned outage.


• Some Interconnection Agreements may require varying maintenance schedules (i.e. 5 year or 10 year maintenance schedules).

• The Generator shall send an annual maintenance schedule to the Control Area Operator and to the Company Operating Agreement notification contacts.

• Incorporated into operational planning studies.• Utilized to more efficiently coordinate outages.

i. The Generator shall submit and coordinate an annual maintenance schedule to the Control Area Operator and to the Company sixty (60) days prior to the Generator’s commercial operation date and annually thereafter and any subsequent revisions to the submitted schedule.


• Generator shall adhere to voltage schedule during normal operations.

• Company Operator may require Generator to deviate from voltage schedule under adverse system conditions.

k. The Control Area Operator shall submit a weekly generation voltage schedule to the Generator. The Company’s Operator will be responsible for verifying that the Generator maintains an acceptable voltage profile in accordance with Southern Company Bulk Power Operations procedure BPO-1, Voltage Schedules in the Southern Control Area (SCA).


• This information is used to develop the next day system security study for reliability purposes.

• More advance notification (i.e. several days) of the Generator energy profile will result in more accurate forecasts.

m. The day prior to commercial operation and every day thereafter, the Generator shall submit a day-ahead hourly schedule (energy profile) to the Control Area Operator and to the Company Operator by 10:00AM CT, to be included in the security studies of the transmission system.


• Time permitting, the Reliability Coordinator will act through marketing channels.

• If an immediate response is needed, the Control Area Operator may direct the Generator to reduce generation or increase generation for reliability purposes.

o. The Generator is responsible for following operational directives issued by the Control Area Operator and the Southern Subregion Security Coordinator.

Questions

Transmission Customer Forum Operating Agreement Update Cheryl Johnson 9/21/06.

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