What’s New in Southern Companies’ OATT
Southern Company Transmission 2008 Customer Forum
Background• Order 890 issued on Feb. 16, 2007• 890 compliance filings made on July 13, 2007• Attachment C filed on Sept. 11, 2007• Attachment K filed on Dec. 7, 2007• Order 890-A issued on Dec. 28, 2007• 890-A compliance filings made on Mar 17, 2008
Order 890 and 890-A
• As a result of FERC Orders, our Tariff is being updated frequently– Since July 13 there have been 5 revisions
driven by Order 890 & 890-A
• At any time, the latest version is on our OASIS at:https://www.weboasis.com/OASIS/SOCO/INFO.HTM
• Topics to Cover– Planning Redispatch and Conditional Firm Service– Rollover Rights– Attachment K– Unreserved Use Penalties– Attachment C– Business Practices– Performance and Study Metrics– Generator Imbalance Service– Creditworthiness
PR / CFS
• Order 890 modified Planning Redispatch and created Conditional Firm Service
• For either to be studied, Customer must select the option in the System Impact Study agreement
• TP at its discretion, can offer a mix of PR and CFS
PR / CFS• Caveats
– Only available for Point-to-Point service– Only an option for service of 2 years or more– For customers unwilling to commit to
enhancements, PR and CFS will have a biennial reassessment
– The “bridge” product for customers committed to enhancements has no reassessment
• TP required to provide both specific conditions and number of hours for customer to choose from
• CFS not available for network customers
• Still only allowed 60 days to perform a SIS with PR and / or CFS options
PR / CFS
PR / CFS• Important takeaways
– PR and/or CFS must be selected by the customer in the SIS agreement
– PR and CFS will only be offered if reliability is not harmed
Rollover Rights• Currently
– To exercise Rollover Rights, Customer must have yearly service and request 60 days prior to expiration of service
• Per Order 890– Five-year term required to have rollover rights– One-year notice provision
Rollover Rights• When does this become effective?
– Effective upon acceptance of Attachment K– Attachment K filed on Dec. 7, 2007– To date, no Transmission Providers’
Attachment K has been accepted by FERC
Attachment K
• Coordinated, Open, and Transparent Transmission Planning required as part of Order 890
• Attachment K describes the Southeastern Regional Transmission Planning Process and the Southeast Inter-Regional Process
Attachment K• Provides detail on how Southern
Companies intend on addressing the eight planning principles:
- Coordination
- Openness
- Transparency
- Information Exchange
- Comparability
- Dispute Resolution
- Regional Participation
- Economic Planning Studies
Attachment K• Southeastern Regional Planning Process
– Initiative started prior to Order 890– Sponsors
• PowerSouth• Dalton Utilities• GTC• MEAG• SMEPA• Southern Company
– Currently have 40 registered participants
Attachment K
• Regional Planning Stakeholders Group
• Four meetings per year
• Next on June 25, 2008 - Preliminary Expansion Plan
• Regional Planning Website: http://www.southeasternrtp.com/
Attachment K• Per section 1.2.1 – up to 5 economic
studies to be performed– Stakeholders selected the following at the
March 5, 2008 meeting:• 1000 MW from Mobile, AL to Atlanta• 1000 MW from Alabama to Florida• 1000 MW from Entergy to Alabama• 1000 MW from GA-ITS to SCPSA and SCEG• 2000 MW from Entergy to GA-ITS
Attachment K• Inter-Regional Planning Process
– Coordination with transmission systems Provider is interconnected with.
– Inter-Regional Planning Website: http://www.southeastirpp.com/
Unreserved Use Penalties
• Penalty charges developed by FERC in Order 890 (P846)– Penalty for single hour will be based on daily,
firm point-to-point service– More than one assessment for a given
duration will increase the penalty period to the next longest duration
Unreserved Use Penalties• Per FERC
– P452 (890-A) - It is the obligation of the transmission customer, not the transmission provider, to ensure that the customer has reserved the transmission service that it uses.
– P447 (890-A) - The Commission declines to distinguish between intentional and unintentional unreserved transmission uses and reiterates that all unreserved uses will be subject to operational penalties.
– P448 (890-A) - The Commission continues to believe that it would not be appropriate to exempt any class of customers from unreserved use penalties.
– P838 (890) – We will not limit unreserved use penalties to instances where the unreserved use jeopardizes the reliable operation of the transmission system.
Unreserved Use Penalties
• Penalty structure described in Business Practices– https://
www.weboasis.com/OASIS/SOCO/BusinessPractices/Southern Company Transmission General Business Practices.pdf
Unreserved Use Penalties• Annual Report for Penalty Assessments
posted on OASIS– Penalties assessed on 8 Pt-Pt customers and
4 network customers– For 2007 (July-Dec), $816,023.97 collected
• Report also includes how penalty will be distributed
Attachment C• Describes methodology to assess
Available Transfer Capability (“ATC”)
• Includes– ATC algorithms– Process Flow-Diagram– Detailed TRM and CBM descriptions
Attachment C
• Southern Companies Attachment C filed on Sept 11, 2007
• FERC Accepted with modification on March 28, 2008
• Southern Companies made a compliance filing on April 28, 2008
Business Practices
• Order 890 requires that all business practices that relate to transmission service be posted
• Southern Companies’ Business Practices can be found in General Information section of OASIShttps://www.weboasis.com/OASIS/SOCO/INFO.HTM
Business Practices• Includes
– General Business Practices• OASIS Registration• Billing Practices• Reservation and Scheduling Information
– CFS Tagging and Tracking– Distribution of Penalties– Procedures for Changing Business Practices
Performance Metrics• 890 Requires the Transmission Provider to
make quarterly reports on performance metrics
• Provides details on study agreements, time to complete studies, etc.
• Differentiates between affiliate and non-affiliate
Generator Imbalance Service
• Described in Schedule 10– Charges for generator imbalances– Description of incremental / decremental cost
• Attachment R– Service Agreement Template for generator
imbalance
Generator Imbalance Service
• Questions about Generator Imbalance service should be directed to:
Bryan Hill
Interconnections Project Mgr
205.257.3409
Creditworthiness
• Attachment Q outlines the credit worthiness requirements for conducting business under our Tariff
• The Credit Manual (posted on OASIS) provides additional implementation details
• These constitute our “Credit Policy”
Creditworthiness• Attachment Q
– Credit Evaluation– Unsecured Credit Line– Eligible Collateral Requirements– Total Credit Limit Amounts– Communication with Applicants and
Customers