FERC ELECTRIC TARIFF OF PUGET SOUND ENERGY, INC. Filed .

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FERC ELECTRIC TARIFFOFPUGET SOUND ENERGY, INC.filed with theFEDERAL ENERGY REGULATORY COMMISSIONOPEN ACCESS TRANSMISSION TARIFFCommunication concerning this Tariff should be addressed to:George E. MarshallManager, Transmission Policy and ContractsPuget Sound Energy, Inc.P.O. Box 97034110th Ave NE, EST06EBellevue, WA 98004

TABLE OF CONTENTSI.COMMON SERVICE PROVISIONS1Definitions1.1Affiliate1.2Ancillary Services1.3Annual Transmission Costs1.3A Annual Transmission Revenue Requirement (ATRR)1.4Application1.4A Balancing Authority (BA)1.4B Balancing Authority Area (BAA)1.4C Balancing Authority Area Resource1.4D Bid Cost Recover (BCR)1.4E California Independent System Operator Corporation (CAISO)1.4F CAISO BAA or CAISO Controlled Grid1.5Commission1.6Completed Application1.7Control Area1.8Curtailment1.9Delivering Party1.10 Designated Agent1.11 Direct Assignment Facilities1.11A Dispatch Instruction1.11B Dispatch Operating Point1.11C Dynamic Transfer1.11D Energy Imbalance Market (EIM)1.11E EIM Area1.11F EIM Available Balancing Capacity1.11G EIM Entity1.11H EIM Transfer1.12 Eligible Customer1.12A e-Tag1.13 Facilities Study1.14 Firm Point-To-Point Transmission Service1.14A Flexible Ramping Constraint1.14B Forecast Data1.15 Good Utility Practice1.15A Hourly Pricing Proxy1.15B Interconnection Customer1.15C Imbalance Energy1.15D Instructed Imbalance Energy (IIE)1.15E Interchange1.15F Intrachange1.16 Interruption

1.42Load aggregation Point (LAP)Locational Marginal Price (LMP)Load SheddingLong-Term Firm Point-To-Point Transmission ServiceMonthly Network LoadManual DispatchMarket OperatorMeasured DemandMetered DemandMO TariffNative Load CustomersNetwork CustomerNetwork Integration Transmission ServiceNetwork LoadNetwork Operating AgreementNetwork Operating CommitteeNetwork ResourceNetwork UpgradesNon-Firm Point-To-Point Transmission ServiceNon-Firm SaleNon-Participating ResourceOpen Access Same-Time Information System (OASIS)Operating HourPSEPSE’s BAAPSE BAA Transmission OwnerPSE EIM Business Practice (PSE EIM BP)PSE EIM EntityPSE EIM Entity Scheduling CoordinatorPSE EIM Participating ResourcePSE EIM Participating Resource Scheduling CoordinatorPSE Interchange Rights HolderPart IPart IIPart IIIPartiesPoint(s) of DeliveryPoint(s) of ReceiptPoint-To-Point Transmission ServicePower PurchaserPre-Confirmed ApplicationPricing Node (PNode)Real Power LossesReceiving PartyRegional Transmission Group (RTG)Reserved Capacity

1.531.541.551.561.57Resource PlanService AgreementService Commencement DateShort-Term Firm Point-To-Point Transmission ServiceSystem ConditionSystem Impact StudyThird-Party SaleTransmission CustomerTransmission Customer Base ScheduleTransmission ProviderTransmission Provider’s Monthly Transmission System PeakTransmission ServiceTransmission SystemUnreserved Use PenaltyUninstructed Imbalance Energy (UIE)Variable Energy ResourceWorking Day2Initial Allocation and Renewal Procedures2.1Initial Allocation of Available Transfer Capability2.2Reservation Priority For Existing Firm Service Customers3Ancillary Services3.1Scheduling, System Control and Dispatch Service3.2Reactive Supply and Voltage Control from Generation or Other SourcesService3.3Regulation and Frequency Response Service3.4Energy Imbalance Service3.5Operating Reserve - Spinning Reserve Service3.6Operating Reserve - Supplemental Reserve Service3.7Generator Imbalance Service3Open Access Same-Time Information System (OASIS)4.1Terms and Conditions4.2Incorporation by Reference of the Standards Promulgated by the WholesaleElectric Quadrant of the North American Energy Standards Board4.3Access To Critical Energy Infrastructure Information (CEII) On TheOASIS5Local Furnishing Bonds5.1Transmission Providers That Own Facilities Financed by Local FurnishingBonds5.2Alternative Procedures for Requesting Transmission Service

6Reciprocity7Billing and Payment7.1Billing Procedure7.2Interest on Unpaid Balances7.3Customer Default8Accounting for the Transmission Provider’s Use of the Tariff8.1Transmission Revenues8.2Study Costs and Revenues9Regulatory Filings10Force Majeure and Indemnification10.1 Force Majeure10.2 Indemnification11Creditworthiness12Dispute Resolution Procedures12.1 Internal Dispute Resolution Procedures12.2 External Arbitration Procedures12.3 Arbitration Decisions12.4 Costs12.4A EIM Disputes12.5 Rights Under The Federal Power ActII.POINT-TO-POINT TRANSMISSION SERVICEPreamble13Nature of Firm Point-To-Point Transmission Service13.1 Term13.2 Reservation Priority13.3 Use of Firm Transmission Service by the Transmission Provider13.4 Service Agreements13.5 Transmission Customer Obligations for Facility Additions or RedispatchCosts13.6 Curtailment of Firm Transmission Service13.7 Classification of Firm Transmission Service13.8 Scheduling of Firm Point-To-Point Transmission Service14Nature of Non-Firm Point-To-Point Transmission Service14.1 Term14.2 Reservation Priority14.3 Use of Non-Firm Point-To-Point Transmission Service by theTransmission Provider14.4 Service Agreements

14.514.614.7Classification of Non-Firm Point-To-Point Transmission ServiceScheduling of Non-Firm Point-To-Point Transmission ServiceCurtailment or Interruption of Service15Service Availability15.1 General Conditions15.2 Determination of Available Transfer Capability15.3 Initiating Service in the Absence of an Executed Service Agreement15.4 Obligation to Provide Transmission Service that RequiresExpansion or Modification of the Transmission System, Redispatchor Conditional Curtailment15.5 Deferral of Service15.6 Other Transmission Service Schedules15.7 Real Power Losses15.8 Distribution of Unreserved Use Penalty Amounts16Transmission Customer Responsibilities16.1 Conditions Required of Transmission Customers16.2 Transmission Customer Responsibility for Third-PartyArrangements17Procedures for Arranging Firm Point-To-Point Transmission Service17.1 Application17.2 Completed Application17.3 Deposit17.4 Notice of Deficient Application17.5 Response to a Completed Application17.6 Execution of Service Agreement17.7 Extensions for Commencement of Service18Procedures for Arranging Non-Firm Point-To-Point Transmission Service18.1Application18.2 Completed Application18.3 Reservation of Non-Firm Point-To-Point Transmission Service18.4 Determination of Available Transfer Capability19Additional Study Procedures For Firm Point-To-Point Transmission ServiceRequests19.1Notice of Need for System Impact Study19.2System Impact Study Agreement and Cost Reimbursement19.3System Impact Study Procedures19.4Facilities Study Procedures19.5Facilities Study Modifications19.6Due Diligence in Completing New Facilities19.7Partial Interim Service19.8Expedited Procedures for New Facilities

19.919.10Penalties for Failure to Meet Study DeadlinesClustering of Studies20Procedures if The Transmission Provider is Unable to Complete NewTransmission Facilities for Firm Point-To-Point Transmission Service20.1Delays in Construction of New Facilities20.2Alternatives to the Original Facility Additions20.3Refund Obligation for Unfinished Facility Additions21Provisions Relating to Transmission Construction and Services on theSystems of Other Utilities21.1Responsibility for Third-Party System Additions21.2Coordination of Third-Party System Additions22Changes in Service Specifications22.1Modifications On a Non-Firm Basis22.2Modification On a Firm Basis23Sale or Assignment of Transmission Service23.1Procedures for Assignment or Transfer of Service23.2Limitations on Assignment or Transfer of Service23.3Information on Assignment or Transfer of Service24Metering and Power Factor Correction at Receipt and Delivery Point(s)24.1Transmission Customer Obligations24.2Transmission Provider Access to Metering Data24.3Power Factor25Compensation for Transmission Service26Stranded Cost Recovery27Compensation for New Facilities and Redispatch CostsIII.NETWORK INTEGRATION TRANSMISSION SERVICEPreamble28Nature of Network Integration Transmission Service28.1Scope of Service28.2Transmission Provider Responsibilities28.3Network Integration Transmission Service28.4Secondary Service28.5Real Power Losses28.6Restrictions on Use of Service28.7Participation in the EIM

29Initiating Service29.1Condition Precedent for Receiving Service29.2Application Procedures29.3Technical Arrangements to be Completed Prior to Commencementof Service29.4Network Customer Facilities29.5Filing of Service Agreement30Network Resources30.1Designation of Network Resources30.2Designation of New Network Resources30.3Termination of Network Resources30.4Operation of Network Resources30.5Network Customer Redispatch Obligation30.6Transmission Arrangements for Network Resources NotPhysically Interconnected With The Transmission Provider30.7Limitation on Designation of Network Resources30.8Use of Interface Capacity by the Network Customer30.9Network Customer Owned Transmission Facilities31Designation of Network Load31.1Network Load31.2New Network Loads Connected With the Transmission Provider31.3Network Load Not Physically Interconnected with theTransmission Provider8131.4New Interconnection Points31.5Changes in Service Requests31.6Annual Load and Resource Information Updates32Additional Study Procedures For Network Integration TransmissionService Requests32.1Notice of Need for System Impact Study32.2System Impact Study Agreement and Cost Reimbursement32.3System Impact Study Procedures32.4Facilities Study Procedures32.5Penalties for Failure to Meet Study Deadlines32.6Clustering of Studies33Load Shedding and Curtailments33.1Procedures33.2Transmission Constraints33.3Cost Responsibility for Relieving Transmission Constraints33.4Curtailments of Scheduled Deliveries33.5Allocation of Curtailments33.6Load Shedding33.7System Reliability

34Rates and Charges34.1Monthly Demand Charge34.2Determination of Network Customer’s Monthly Network Load34.3Determination of Transmission Provider’s Monthly TransmissionSystem Load34.4Redispatch Charge34.5Stranded Cost Recovery35Operating Arrangements35.1Operation under The Network Operating Agreement35.2Network Operating Agreement35.3Network Operating CommitteeSCHEDULE 1Scheduling, System Control and Dispatch ServiceSCHEDULE 1AEIM Administrative ServiceSCHEDULE 2Reactive Supply and Voltage Control from Generation or Other SourcesServiceSCHEDULE 3Regulation and Frequency Response ServiceSCHEDULE 4Energy Imbalance ServiceSCHEDULE 4REnergy Imbalance Service for Transmission Customers Taking ServiceUnder Transmission Provider’s Schedule 448 and Schedule 449SCHEDULE 5Operating Reserve - Spinning Reserve ServiceSCHEDULE 6Operating Reserve - Supplemental Reserve ServiceSCHEDULE 7Long-Term Firm and Short-Term Firm Point-To-Point TransmissionServiceSCHEDULE 8Non-Firm Point-To-Point Transmission ServiceSCHEDULE 9Generator Imbalance ServiceSCHEDULE 10High Voltage Direct Assignment Facilities - Colstrip and SouthernIntertie Transmission LinesSCHEDULE 11Tax RiderSCHEDULE 12Real Power Losses on Washington Area Transmission FacilitiesSCHEDULE 12AReal Power Losses on Colstrip and Southern Intertie Transmission Lines

SCHEDULE 13Regulation and Frequency Response Service for Generators SellingOutside of Control AreaATTACHMENT AForm Of Service Agreement For Firm Point-To-PointTransmission ServiceATTACHMENT A-1Form Of Service Agreement For The Resale, Reassignment OrTransfer Of Point-To-Point Transmission ServiceATTACHMENT BForm Of Service Agreement For Non-Firm Point-To-PointTransmission ServiceATTACHMENT CMethodology To Assess Available Transmission CapabilityATTACHMENT DMethodology for Completing a System Impact StudyATTACHMENT EIndex Of Point-To-Point Transmission Service CustomersATTACHMENT FService Agreement For Network Integration TransmissionServiceATTACHMENT GNetwork Operating AgreementATTACHMENT HAnnual Transmission Revenue Requirement For NetworkIntegration Transmission ServiceATTACHMENT H-1PSE’s Formula RateATTACHMENT H-2Formula Rate Implementation ProtocolsATTACHMENT IIndex Of Network Integration Transmission Service CustomersATTACHMENT JProcedures for Addressing Parallel FlowsATTACHMENT J-1Form of Service Agreement For Retail Network IntegrationTransmission ServiceATTACHMENT KTransmission Planning ProcessATTACHMENT LCreditworthiness ProceduresATTACHMENT MForm of Retail Network Operating AgreementATTACHMENT NPoint-to-Point Transmission Service Products Offered by PSEATTACHMENT OEnergy Imbalance Market

ANNEX AStandard Large Generator Interconnection ProceduresANNEX BStandard Small Generator Interconnection Procedures

I.COMMON SERVICE PROVISIONS

1Definitions1.1AffiliateWith respect to a corporation, partnership or other entity, each such othercorporation, partnership or other entity that directly or indirectly, through one or moreintermediaries, controls, is controlled by, or is under common control with, suchcorporation, partnership or other entity.1.2Ancillary ServicesThose services that are necessary to support the transmission of capacity andenergy from resources to loads while maintaining reliable operation of the TransmissionProvider’s Transmission System in accordance with Good Utility Practice.1.3Annual Transmission CostsThe total annual cost of the Transmission System for purposes of NetworkIntegration Transmission Service shall be the amount specified in Attachment H untilamended by the Transmission Provider or modified by the Commission.1.3AAnnual Transmission Revenue Requirement (ATRR)The transmission revenue requirement calculated annually using the formula rateset forth in Attachment H-1.1.4ApplicationA request by an Eligible Customer for transmission service pursuant to theprovisions of the Tariff.1.4ABalancing Authority (BA)The responsible entity that integrates resource plans ahead of time, maintainsload-Interchange-generation balance within a BAA, and supports interconnectionfrequency in real time.1.4BBalancing Authority Area (BAA)The collection of generation, transmission, and loads within the meteredboundaries of the BA. The BA maintains load-resource balance within this area. Forpurposes of this Tariff, “BAA” shall have the same meaning as “Control Area.”1.4CBalancing Authority Area ResourceA resource owned by PSE, or voluntarily contracted for by PSE to provide EIMAvailable Balancing Capacity, that can provide regulation and load following services toenable the PSE EIM Entity to meet reliability criteria. No resource unaffiliated with the

PSE EIM Entity shall be a Balancing Authority Area Resource solely on the basis of one ormore of the following reasons: (1) the resource is a Designated Network Resource; (2) theresource flows on a Point-to-Point Transmission Service reservation; and/or (3) theresource is an Interconnection Customer under the Tariff.1.4DBid Cost Recovery (BCR)The MO EIM settlements process through which PSE EIM Participating Resourcesrecover their bid costs.1.4ECalifornia Independent System Operator Corporation (CAISO)A state-chartered, California non-profit public benefit corporation that operates thetransmission facilities of all CAISO participating transmission owners and dispatchescertain generating units and loads. The CAISO is the MO for the EIM.1.4FCAISO BAA or CAISO Controlled GridThe system of transmission lines and associated facilities of the CAISOparticipating transmission owners that have been placed under the CAISO’s operationalcontrol.1.5CommissionThe Federal Energy Regulatory Commission.1.6Completed ApplicationAn Application that satisfies all of the information and other requirements of theTariff, including any required deposit.1.7Control AreaAn electric power system or combination of electric power systems to which acommon automatic generation control scheme is applied in order to:1.match, at all times, the power output of the generators within the electricpower system(s) and capacity and energy purchased from entities outsidethe electric power system(s), with the load within the electric powersystem(s);2.maintain scheduled interchange with other Control Areas, within the limitsof Good Utility Practice;3.maintain the frequency of the electric power system(s) within reasonablelimits in accordance with Good Utility Practice; and4.provide sufficient generating capacity to maintain operating reserves inaccordance with Good Utility Practice.

1.8CurtailmentA reduction in firm or non-firm transmission service in response to a transfercapability shortage as a result of system reliability conditions.1.9Delivering PartyThe entity supplying capacity and energy to be transmitted at Point(s) of Receipt.1.10Designated AgentAny entity that performs actions or functions on behalf of the TransmissionProvider, an Interconnection Customer, an Eligible Customer, or the TransmissionCustomer required under the Tariff.1.11Direct Assignment FacilitiesFacilities or portions of facilities that are constructed by the Transmission Providerfor the sole use/benefit of a particular Transmission Customer requesting service under theTariff. Direct Assignment Facilities shall be specified in the Service Agreement thatgoverns service to the Transmission Customer and shall be subject to Commissionapproval.1.11A Dispatch InstructionAn instruction by the MO for an action with respect to a specific PSE EIMParticipating Resource or Balancing Authority Area Resource for increasing or decreasingits energy supply or demand.1.11B Dispatch Operating PointThe expected operating point, in MW, of a PSE EIM Participating Resource thathas received a Dispatch Instruction from the Market Operator or a Balancing AuthorityArea Resource to which the PSE EIM Entity has relayed a Dispatch Instruction receivedfrom the Market Operator. For purposes of Attachment O of this Tariff, the DispatchOperating Point means the change, in MW output, of (i) a PSE EIM Participating Resourcedue to an EIM bid being accepted and the PSE EIM Participating Resource receiving aDispatch Instruction; or (ii) a Balancing Authority Area Resource for which a DispatchInstruction has been issued by the CAISO with respect to EIM Available BalancingCapacity. The Dispatch Operating Point is expressed either as a negative MW quantityfor the downward movement of generation, or a positive MW quantity for the upwardmovement of generation.1.11C Dynamic TransferThe provision of the real-time monitoring, telemetering, computer software,hardware, communications, engineering, energy accounting (including inadvertentInterchange), and administration required to electronically move all or a portion of the real

energy services associated with a generator or load out of one BAA into another. ADynamic Transfer can be either:(1) a Dynamic Schedule: a telemetered reading or value that is updated in real time andused as a schedule in the AGC/ACE equation and the integrated value of which is treated asan after-the-fact schedule for Interchange accounting purposes; or(2) a Pseudo-Tie: a functionality by which the output of a generating unit physicallyinterconnected to the electric grid in a native BAA is telemetered to and deemed to beproduced in an attaining BAA that provides BA services for and exercises BA jurisdictionover the generating unit.1.11D Energy Imbalance Market (EIM)The real-time market to manage transmission congestion and optimizeprocurement of imbalance energy (positive or negative) to balance supply and demanddeviations for the EIM Area through economic bids submitted by EIM ParticipatingResource Scheduling Coordinators in the fifteen-minute and five-minute markets.1.11E EIM AreaThe combination of PSE’s BAA, the CAISO BAA, and the BAAs of any other EIMEntities.1.11F EIM Available Balancing CapacityAny upward or downward capacity from a Balancing Authority Area Resource thathas not been bid into the EIM and is includ

FERC ELECTRIC TARIFF OF PUGET SOUND ENERGY, INC. filed with the FEDERAL ENERGY REGULATORY COMMISSION OPEN ACCESS TRANSMISSION TARIFF Communication concerning this Tariff should be addressed to:

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