ISO-NE Transmission Markets and Services Tariff Cross Sound Cable Business Practices. Version 10.0 April 17, 2013

Transcription

1 ISO-NE Transmission Markets and Services Tariff Cross Sound Cable Business Practices Version 10.0 April 17, 2013

2 ISO-NE Transmission, Markets and Services Tariff Cross Sound Cable Business Practices Version 10.0 April 17, 2013 Practices and Procedures for Cross Sound Cable under the Tariff 1. Introduction The following practices and procedures outline the process for obtaining transmission service over the Cross Sound Cable ( CSC ). This service is provided in conjunction with services reserved on the PTF. Please note that service over the Cross Sound Cable is provided under the MTF provisions set forth in Schedule 18 of the ISO New England Transmission, Markets and Services Tariff ( ISO-NE Tariff ). This service is separate from transmission service provided over the PTF. Advance Reservations obtained or registered through the CSC OASIS site are required in order to use the Cross Sound Cable and are required to have energy transactions accepted in the ISO New England and NYISO market systems. While this document solely addresses the procedures for obtaining MTF transmission service on the Cross Sound Cable, customers will not be successful in completing transactions unless they obtain service on the PTF network. Customers also should consult with the NYISO for NYISO transmission service requirements. Topics covered include: Establishing a Basis for Service Transmission Customer Obligations The Application Process Reserving Transmission Service Scheduling Transactions Billing Page 1 of 12

3 1.1 Definitions CSC The Cross Sound Cable. CSC LLC Cross-Sound Cable Company, LLC, the MTF Owner. CSC OASIS A node on the ISO New England OASIS site that provides real time information and service for transmission over the CSC. ISO-NE Tariff ISO New England Inc. Transmission, Markets and Services Tariff MTF Merchant Transmission Facility as defined in Schedule 18 of the ISO-NE Tariff. MTF Provider An owner of MTF or a party holding rights to the transmission capability over MTF pursuant to a Commission-approved rights allocation process, which offers unused transmission capability over the MTF to Eligible Customers through the System Operator and/or ISO New England OASIS. MTF Service Transmission service on the Cross Sound Cable, which requires an advance reservation and a separate charge. NERC The North American Electric Reliability Corporation. PTF Pool Transmission Facilities as defined in the ISO-NE Tariff. OATI Open Access Technology International (link to OATI is Establishing Basis for Service Advance Reservation Requirement Customers wishing to purchase transmission service over the CSC must comply with these Business Practices requirements for establishing a valid basis for transmission service through the acquisition of an advance reservation. Types of Transmission Service Separate conditions and applications (if needed) apply to the following types of transmission service: MTF Point-to-Point Service on the CSC (discussed here) Transmission Service on PTF External Transactions using the CSC require Through or Out Service for use of the ISO New England transmission system. Customers should also consult with the NYISO for NYISO service requirements. Page 2 of 12

4 NEPOOL Membership Participation in NEPOOL does not alone provide a valid basis for MTF Service over the CSC. NEPOOL Participants and Non- Participants must: (1) apply for a transmission service agreement with CSC LLC and (2) obtain an advance reservation for use of the CSC. Customers should also consult with the NYISO for NYISO service requirements. Blanket Transmission Service Agreement Entities wishing to obtain MTF service over the CSC must first execute a blanket transmission service agreement and then obtain an advance reservation for specific transactions. Advance Reservations for Transmission Service Effect of Advance Reservation A long-term advance reservation for the capacity of the Cross Sound Cable has been awarded to LIPA (the primary rights holder ) through a FERC-approved process. Parties may obtain an advance reservation through direct assignment from LIPA or through the acquisition of an advance reservation for released capacity through the CSC OASIS. The issuance of an advance reservation is a prerequisite to scheduling an External Transaction over the CSC in the ISO New England Real-Time Energy Market. While not required, customers are encouraged to acquire an advance reservation over the CSC prior to submitting an External Transaction over the CSC into the ISO New England Day Ahead Market, as absent an advance reservation prior to the submittal of the financial transaction in the Day Ahead Market the customer will not be assured that it can acquire a CSC advance reservation prior to the submittal of a corresponding External Transaction in the Real-Time Energy market, thus creating financial risk to the transacting party. A party holding an advance reservation and otherwise meeting the qualifications for submitting transactions under the ISO-NE Tariff may submit Real-Time Energy Market transactions over the CSC with ISO New England up to the total MW amount of the advance reservation. If an advance reservation holder does not submit a schedule for transmission service for the full MW amount of its advance reservation by Noon of the day prior to the Operating Day, the unused capacity will be posted for default release on the CSC OASIS pursuant to Schedule 18 of the ISO-NE Tariff. Default releases will be posted based on the difference between all remaining advance reservations for which accepted bids/offers were Page 3 of 12

5 Duration of Service submitted to the New England energy market by advance reservation holders and the Total Transfer Capability over the CSC in the subject scheduling hour. The following maximums and minimum durations apply for MTF service agreements: Blanket service: each firm reservation, under the agreement, is limited to a one hour minimum for up to a maximum of one month. Minimum Reservation For MTF transmission service, the minimum reservation is 3 MW/hr stated in 1MW/hr. This will be stated at the point of withdrawal from the CSC facilities. Digital Certificate Creditworthiness Customer must register with OATI to obtain a valid digital certificate for making advance reservations on the CSC OASIS. Customers seeking MTF service over the Cross Sound Cable must: (1) meet the credit standards of ISO New England and (2) meet the creditworthiness requirements established by the MTF provider as set forth in Section Note: ISO New England requires that each customer establish their creditworthiness through credit review procedures in accordance with standard commercial practices. Once credit has been established, it is reviewed whenever company circumstances or service changes Security Deposits For customers executing a Blanket MTF transmission service agreement, the minimum security deposit is $100, A Customer who anticipates business activity that exceeds the minimum security deposit or who is executing a transactionspecific MTF transmission service agreement shall be required to provide a security deposit commensurate with the anticipated business activity. The security deposit requirement shall be determined on a case-by-case basis, with the maximum security deposit charged equal to the cost of the Reserved Capacity over the MTF for the duration of the specific transaction. Security deposits are held in a customer specific, interest bearing account. Interest and/or interest percentage is not guaranteed. A statement of account is sent out annually. Page 4 of 12

6 2.1.4 Denial of Service CSC LLC reserves the right to deny service: (1) when a customer is in default for non-payment of any amounts owed to a MTF Provider by the customer; (2) when a customer violates any provision of the Market Participants Service Agreement with ISO New England or the MTF Transmission Service Agreement; (3) when the customer is not in compliance with the applicable creditworthiness requirements of either ISO New England or the MTF Provider (including all security deposit requirements and assigned credit limits), or (4) failure to enter a transaction correctly or within the prescribed time constraints. CSC LLC will post the reasons for any denial of transmission service on the CSC OASIS. CSC LLC maintains records regarding denial of service, together with all transmission service transaction data, for a period of five years. 2.2 Obligations of Service System Impact Study This section sets out obligations of CSC transmission customers, including: Purchase of Ancillary Services Arrangements for Other Transmission Service, Including Local Service As approved by FERC, CSC LLC has no obligation to expand the MTF or to study the expansion of the MTF to accommodate a transmission request. CSC LLC will participate in studying outside transmission service requests that affect service over the CSC facilities Reciprocity Obligations CSC LLC meets all applicable reciprocity obligations Ancillary Services Transmission Customers are required to arrange ancillary services in New York and/or New England. Further information about these requirements is provided in the Market Rules and Procedures which are accessible from the ISO New England web site ( Page 5 of 12

7 2.3 Transmission Service Application Process Entering a Service Agreement with MTF Provider (All Parties) 1. Transmission Customer obtains and submits a credit application and an application for MTF transmission services to CSC LLC. 2. CSC LLC reviews the applications, and upon approval, generates a Form of Blanket Service Agreement for MTF service. 3. Transmission Customer executes a Blanket Service Agreement and wires the security deposit to CSC LLC (see Section Security Deposit) Obtaining Applications The MTF service application and credit application can be downloaded from the CSC OASIS using the links under MTF Service Submit MTF Service Application Method of Submittal Submit by fax to (508) , ATTN: Schedules & OASIS or by mail to Cross-Sound Cable Company, LLC; ATTN: Schedules and OASIS; 200 Donald Lynch Boulevard, Suite 300; Marlborough, MA Submit Credit Application Customers must submit a credit application. Submitting Credit Application Creditworthiness Approval The credit application may be submitted at the same time as the application for MTF transmission service. CSC LLC will conduct a credit review. An applicant shall be considered creditworthy as long as the applicant is: (1) in good standing with ISO-NE credit requirements (2) not in default of any amounts owed to any MTF provider (i.e. CSC LLC and the primary rights holder, LIPA) and (3) pass CSC LLC s credit review process as noted in this Section. As part of the credit review process, each customer will be assigned a credit limit. The credit limit is equal to the security deposit required when the Blanket Service Agreement is executed Page 6 of 12

8 For a customer that holds a below investment grade rating from either Standard & Poors, Inc (S&P), Moody s Investors Services (Moody s) or Fitch Ratings (Fitch) or is not rated by any of those three rating agencies, the assigned credit limit will be the amount of the security deposit posted by such customer. For a customer that is rated by one, or more, of S&P, Moody s or Fitch and holds an investment grade rating from each agency that rates that customer, the credit limit will be established using standard commercial practices on a case-by-case basis based on an estimate of the customer s anticipated use of the CSC. CSC LLC will monitor the credit status of all approved customers and may modify credit limits (higher or lower) for such customer to the extent that company circumstances or service changes occur. In the event that a customer is downgraded such that it holds a below investment grade rating from S&P, Moody s or Fitch, or is not rated by any of the three agencies, the customer s credit limit shall be immediately reduced to the amount of security deposit posted by that customer. CSC LLC will immediately notify customers of any modifications to credit limits or required security deposits. Upon request, CSC LLC will provide customers a written explanation for any change in credit limits or required security deposits, including an opportunity to cure any credit deficiencies within a specified time period Review and Approval of Application CSC LLC will review all submitted applications as soon as possible and will notify Applicant directly when approved. Should CSC LLC reject a credit application, CSC LLC will notify the customer directly and provide the reasons for the rejection and an opportunity to revise and resubmit the credit application to address the identified deficiencies Execution of Transmission Services Agreement Once the credit application has been approved, CSC LLC will offer the customer a service agreement. The customer has 15 days to execute the agreement and return it to CSC LLC for final execution. If the agreement is not executed within this time period, the application will be deemed withdrawn. Page 7 of 12

9 2.3.6 Security Deposit Customer will provide the security deposit via wire transfer (CSC LLC will provide the customer with its wire transfer bank account information.) Final Approval Once the Customer is approved and the security deposit has been received, CSC will activate the customer s ability to make reservations using the CSC OASIS. 2.4 Acquiring Advance Reservation Requirement for Advance Reservations over MTF All available transmission capability over MTF is assigned in advance under a Federal Energy Regulatory Commission-approved rights allocation process. Secondary rights to use the MTF, to the extent unused by the primary rights holders, may be offered on the ISO New England OASIS by MTF Providers in accordance with a Commission-approved process for offering such rights. The FERCapproved procedures for reassignment are set forth in the Schedule 18 Implementation Rule posted on the CSC OASIS Reserving Transmission Service This section provides information concerning reservation of MTF Service: Preconditions for reserving transmission Steps in the reservation process Guidelines for reserving different types of service Pre-Conditions for Making a Request for Transmission Service Before making a request for transmission service, the Transmission Customer must satisfy the following pre-conditions: The transmission customer must be registered with NERC The transmission customer must register with and have a valid OATI digital certificate ( The transmission customer must have established a valid basis for service as described in Section 2.1 above. The transmission customer must hold an advance reservation for the use of the CSC. Note: It is possible for the customer or the MTF Provider to enter a request for an advance reservation Page 8 of 12

10 after an application for service has been filed, pending approval by the MTF Provider and establishment of a service agreement. An advance reservation will not be awarded until the Service Agreement is executed. Receipt of an advance reservation remains a prerequisite to filing a request for transmission service. Independence of Transmission Service Requests MTF Service requests are made separately from requests for transmission service over the PTF System. Separate requests/reservations will be considered independently, even if they are contiguous. They will not be combined for billing or prioritization purposes. See next section for discussion of prioritization. 2.5 Scheduling Service Transmission customers schedule energy or capacity and energy against their advance reservations. This section describes briefly the scheduling requirements and procedures. References to other documents are provided as appropriate Requirements for Scheduling Service In order to schedule transmission service over the CSC, the Transmission Customer must provide ISO New England with information about the energy or capacity contract, their advance reservation, and the transaction tag. Information regarding NYISO s requirements for the scheduling of transactions over the CSC can be obtained in NYISO Technical Bulletin #223. OASIS Reservation NERC Interchange Transaction Tag ISO New England Tag Procedures An advance reservation for transmission capacity must be acquired before an energy transaction is scheduled. When scheduling service, the OASIS reservation number must be provided. Schedules for transactions delivered across Pool ties will NOT be accepted without the OASIS reservation number for the transmission capacity to deliver the energy. All external transactions with ISO New England must have a NERC Interchange Transaction Tag. The purchasing/selling entity must complete the tag in accordance with NERC s tagging policy as described in NERC Policy, Appendix 3A and 3B. ISO New England procedures governing tagging are set forth in ISO New England Operations Procedure 9, Dispatch of External Contracts. Page 9 of 12

11 On-Peak and Off-Peak Pricing Failure to Submit a Non- Zero Bid Price Administrative Price Corrections Transmission service is subject to both On-Peak and Off-Peak pricing. On-Peak pricing applies from hour ending 0700 to hour ending 2200 (6am 10pm). Off-Peak pricing applies daily from hour ending 2300 to hour ending 0600 (10pm 6am) and all day on weekends and NERC holidays. When purchasing CSC transmission service via the CSC OASIS, customers must always enter a bid price in $ per MWh that is greater than zero (bid price should equal offer price). Failure to submit a non-zero bid price when making a transmission service reservation will result in the confirmed reservation being charged the full ceiling rate for the on-peak period regardless of whether the requested transmission reservation is for on-peak or off-peak hours. In the event that the bid price submitted by a Transmission Customer is less than the posted offer price applicable to that hour (other than a non-zero bid see above) and the OASIS software nonetheless erroneously accepts the advance reservation request, the Transmission Customer will be charged the posted on-peak or off-peak offer price applicable to that hour Scheduling Procedures Applicable Rules and Procedures ISO Verifications General ISO New England scheduling procedures have been established under Section 4 of the ISO New England Market Rules and Procedures and Operating Procedure 9, Scheduling and Dispatch of External Contracts. These procedures generally apply to MTF Service. Before scheduling service, ISO New England will verify that the requirements for transaction tag and OASIS reservation number, as described in Section 2.5.1, have been satisfied Prioritization, Preemptions and Curtailments Types of Transmission Priority for Advance Reservations Advance reservations are characterized as either Firm MTF Service or Non-Firm MTF Service. Advance reservations for Non-Firm MTF Service may be further categorized on a monthly, weekly, daily or hourly basis. Page 10 of 12

12 Scheduling and Curtailment Priority Section II.44 of the ISO-NE Tariff sets forth the rules for scheduling and curtailment of Real-Time External Transactions over the MTF. Scheduling of transmission service over the CSC by advance reservation holders is based on economic merit order consistent with ISO New England System Rules. Where there is a tie in economic merit order, the transmission priority of the advance reservation is used as a tie breaker. Curtailments of service over the CSC shall be based on the transmission priority of the advance reservation with firm MTF service curtailed on a pro rata basis and Non-Firm MTF Service curtailed first based on the sub-category of non-firm transmission priority and then based on real-time energy market timestamp order within the sub-category. Relationship of Advance Reservation Transmission Priorities to Transmission Priorities for Use of PTF 2.6 Billing Source of Billing The priorities for service over MTF and PTF are separately established. The Advance Reservation transmission priorities over the CSC do not grant a customer any rights with respect to the use of the PTF. In parallel, the transmission priorities for use of PTF do not grant a customer any rights with respect to the use of the CSC. The customer will be invoiced directly by ISO New England for transmission service over the PTF. A party holding an advance reservation through an open-season award or through voluntary or default releases in accordance with the Schedule 18 Implementation Rule shall be billed by CSC LLC in accordance with the terms of the MTF Service Agreement and Section 13 of the Schedule 18 Implementation Rule. Advance reservations acquired through a bilateral assignment from a Rights Holder to another party shall be billed for, and collected pursuant to an agreement between the assignor and assignee. The assigning Rights Holder shall continue to be billed for, and obligated to, pay to CSC LLC the applicable charges for the advance reservation. Billing for transmission service over the New York bulk transmission system in connection with any MTF Service over the CSC will be conducted pursuant to the NYISO tariff and manuals. Page 11 of 12

13 2.6.1 General Billing Information Invoices Invoices will be issued on a weekly basis. Terms of Payment Interest Charges Payments are due within 10 days of Customer receipt of the weekly invoice. Invoices are considered paid when wire transfer payment is received by CSC LLC. Interest will be charged on unpaid invoices calculated from the due date of the invoices. Questions Questions regarding invoices may be directed to CSC LLC at Page 12 of 12