r\ Hydra~ Québec Hydro-Québec

Requête R-3401-98

Engagement 52 :

Fournir la citation de la décision PJM à laquelle il a été référée par Dr. RenOrans lors son témoignage.

RE-52 Les extraits pertinents sont fournis dans les pagessuivantes.

Original: 2001-05-17 HOT -10, Document 4.2

(En liasse)

"la rl~fY.cess

Original Sheet No.74PJM Interconnection, L.L.C.FERC Electric TariffFourth Revised Volume No.1

Allocation of Curtailments: The Transmission Provider shall, on a non-discriminatory basis, Curtail the transaction(s) that effectively relieve theconstraint. However, to the extent practicable and consistent with Good UtilityPractice, any Curtailment win be shared by each RTO and Network Customer inproportion to their respective Load Ratio Shares. The Transmission Providershan not direct the Network Customer to Curtail schedules to an extent greaterthan the Transmission Provider would Curtail the schedules of an RTO undersimilar circumstances.

Load Shedding: To the extent that a system contingency exists on theTransmission Provider's Transmission System and the Transmission Providerdetermines that it is necessary for the RTOs and the Network Customer to shedload, the Network Customer and the RTOs shall shed load in accordance withpreviously established procedures under the Network Operating Agreement.

System Reliability: Notwithstanding any other provisions of this Tariff, theTransmission Provider reserves the right, consistent with Good Utility Practiceand on a not unduly discriminatory basis, to Curtail Network IntegrationTransmission Service without liability on the Transmission Provider' s part for thepurpose of making necessary adjustments to, changes in, or repairs on its lines,substations and facilities, and in cases where the continuance ofNetworkIntegration Transmission Service would endanger persons or property. ln theevent of any adverse condition( s) or disturbance( s) on the TransmissionProvider's Transmission System or on any other system(s) directly or indirectlyinterconnected with the Transmission Provider's Transmission System, theTransmission Provider, consistent with Good Utility Practice, also may CurtailNetwork Integration Transmission Service in order to (i) limit the extent ordamage of the adverse condition(s) or disturbance(s), (ii) prevent damage togenerating or transmission facilities, or (iii) expedite restoration of service. TheTransmission Provider will give the Network Customer as much advance noticeas is practicable in the event of such Curtailment. Any Curtailment ofNetworkIntegration Transmission Service will be not unduly discriminatory relative to anRTO's use of the Transmission System on behalfof its Native Load Customers.The Transmission Provider shall specify the rate treatment and all related termsand conditions applicable in the event that the Network Customer fails to respondto established Load Shedding and Curtailment procedures.

Rates and Charges

The Network Customer shall pay the Transmission Provider for any Direct AssignmentFacilities, Ancillary Services, PJM Administrative Service, Mid-Atlantic Area Council Charge,and applicable study costs, consistent with Commission policy, along with the following:

Issued Dy Effective: March 1,2001Richard A. DromVice President, Genera1 Counse1

February 28,2001Issued On:

Original Sheet No.75PJM Interconnection, L.L.C.FERC Electric TariffFourth Revised Volume No.

34.1 Monthly Demand Charge: (a) The Network Customer shall paya monthlyDemand Charge for Network Load and Non-Zone Network Load, which shall bedetermined as follows:

Sum ofMDCZ for all Zones plus the MDCNZ for Non-ZoneNetwork Load

MDCZ SUffi ofDDCZ for each clay of the calenclar month for the Zone=

DDCZ DCPZ X RTZ/365=

MDCNZ = SUffi of DDCNZ for each day of the calendar month for Non-ZoneNetwork Load

DDCNZ = DCPNZ X RTNZ/365

Where:

is the monthly demand charge

MDCZ is the monthly demand charge for a Zone

DDCZ is the daily demand charge for a Zone

~

DCPZ 1 is ~e.dail l~ad of the Network Customer located withïn a Zone~ comc!dent Wlth the annual peak of tne Zone p us any curtal e oad

coïncident with the annual peak of the Zone

is the ~ate for Network Integration Transmission Service fromAttachment H for the Zone in which the Network Load is located,stated in dollars per megawatt per year

MDCNZ is the monthly demand charge for Non-Zone Network Load

DDCNZ is the daily demand charge for Non-Zone Network Load

DCPNZ is the daily transmission responsibility for Non-Zone NetworkLoad

RTNZ is the rate for Network Integration Transmission Service for Non.Zone Network Load from Attachrnent H-ll, stated in dollars per

megawatt per year

Issued By: Effective: March 1, 2001Richard A. DromVice President, Genera1 Counse1

February 28,2001Issued On'

Original Sheet No.76PJM Interconnection, L.L.C.FERC Electric TariffFourth Revised Volume No.1

The zonaI daiIy Ioad of the Network Customer shaII be the suffi of the NetworkCustomer's individuaI whoIesaIe and retaiI customer Network Loads at the timeof the annuaI peak of the Zone in which thë ioad is Iocated. For oNetwork Load, the daiIy transmission responsibiIity of the Network CustomershaII be the SUffi of the Network Customer's Network Load at the border of thePJM ControI Area at the time of the annuaI peak of the PJM Control Area.Network Load at the time of the annual peak of the Zone shall include anycurtailed load. Curtailed load is any mandatory load reduction as a result ofPJMand/or local control center directions to reduce Ioad due to a systeffi emergencycondition.

The annua1 peaks for purposes of the above ca1cu1ation sha11 be detennined fromthe twe1ve month period ending October 31 of the ca1endar year preceding theca1endar year in which the bi11ing month occurs. For new Network Load that wasnot connected to the Transmission System during such entire twe1ve monthperiod, the Transmission Provider in coordination with the affected RTOs ande1ectric distribution companies sha11 detennine the appropriate peak 1oadresponsibi1ity to be used unti1 the annua1 peaks are detennined for the next twe1vemonth period ending October 31,

The annual peak of the Zone pursuant to this section of the Tariff is defined tohave occurred at the hour for which the SUffi of the recorded peak and anycurtailed load at that same load is the highest.

(b) Nothing herein shan entitle any RTO or Network Customer to establish a zonethat is smaner than or a portion of a Zone set forth in Attachment J .

[Reserved]

[Reserved]

Redispatch Charge: The Network Customer and each RTO shall pay anyredispatch costs as set forth in Attachment K.

Stranded Cost Recovery: Any RTO may seek to recover stranded costs fromthe Network Customer pursuant to this Tariff in accordance with the terms,conditions and procedures set forth in FERC Order No.888. However, the RTOmust separately file any proposai to recover stranded costs under Section 205 ofthe FederaI Power Act.

35 Operating Arrangements

Operation under The Network Operating Agreement: The Network Customershall plan, construct, operate and maintain its facilities in accordance with GoodUtility Practice and in conformance with the Network Operating Agreement.

Issued By Effective: March 1, 2001Richard A. DromVice President, Genera1 Counse1

February 28,2001Issued On:

FERC RIMS DOC 1802834

,25=1

-15

their network resources equal to their load for which theyreceive FTRs, in order to be protected from congestion charges.Any other use of the transmission system by a firm customer willbe subject to congestion charges during a period of constrainedtransmission capacity, ~, when a firm point-to-point customeruses secondary receipt and delivery points, when a networkcustomer or RTO schedules energy from a non-network resource, andwhen a network customer or RTO schedules energy from a networkresource for which it did not nominate FTRs. !2/

Supporting Companies have also filed changes to the PJMTransmission Tariff that are intended to facilitate use of theTariff in a retail choice environment. ~/ In this regard, thePJM Transmission Tariff contains modifications ta accommodate achange to the demand charge calculation for network service froma twelve-month rolling average load ratio share calculation ta astated rate per MW-year applied to the actual loads of thenetwork customer in a month; this change is designed to be moreresponsive to changes in load responsibility. ~/

A. Pro Forma Tariff Chang:es To R.AflAct. R.Agional SArvice

The PJM Transmission Tariff contains changes to the ~forma taritt in order to apply the provisions to a regionaltransmission service that allows network resources and loads tobe integrated over eight utility systems. As such, SupportingCompanies propose that a single transmission service rate will beassessed for each firm reservation, no mat ter how many of theeight utility transmission systerns are involved in providing thetransmission service.

.i.2./ For example, if a network customer with a 1000 MW load hadtwelve 100 MW generating units, it would select the 10network resources which it expects would be most vulnerableto congestion. The corresponding FTRs would shelter thecustomer from congestion charges provided it uses thoseunits for sales to its reserved points of delivery. If thenetwork customer used the other two generating units orrelied on a resource other than ite network resources, itwould be subject to congestion charges in a constrainedsituation.

~ Attachment K ta the PJM Transmission Tariff.

The stated rate for netwark service is intended to pravidegreater rate certainty ta suppliers and customers thanexists under the load ratio share approach, because theultimate transmission rate for a supplier under the loadratio share method will change depending not only onvariations in the loads served by a particular supplier buton the loads served by athers.

http:/ /rimsweb 1.ferc.fed.us/rims.q?rp2-PrintNPick 2001-05-16

Otc;'er(\ss~ tJoè~ 2-5-" \~)

Docket No. OA97-261-000, ~ Al.

FERC RIMS DOC 1802834

Docket No. OA97-261-QQO, ~ al. -16

The PJM Transmission Tariff aIso contains changes to thepoint-to-point rate design in ScheduIes 7 and 8. SupportingCompanies are proposing one point-to-point rate for deIiverypoints at the border of the control area and separate point-to-point rates for deIivery points in each zone. SupportingCornpanies state that this change does not affect the avaiIabiIityof pool-wide transmission service at a single, non-pancaked rate.They state further that, by making this change, alI suppIierscornpeting for the same loads within a zone would have the sametransmission rate, whether they take point-to-point or networkservice.

Certain protestors argue that the proposed changes violateOrder No.888 by eliminating network integration service or bychanging the terms and conditions for that service. ~/ Theseprotestors focus on one aspect of Supporting Companies' changesto the nature of the service --the fact that network resourcesequal to network load are selected and assigned correspondingreceipt and delivery point MW reservations called FTRs.

COImniBBion R~B~nnBe

Supporting Companies I proposed changes to the ~ formatariff are reasonable in the context of the new transmissionservices that will be provided by PJM. Notwithstanding thearguments of certain protestors, the PJM Transmission Tariff doesnot eliminate network service. The PJM Transmission Tariffadopts the terme and conditions of network service directly fromthe ~ forma tariff. Consistent with the ~ forma tariff, anetwork customer will paya firm transmission rate based on itsportion of the total system loads and may schedule energy fromany network resource to serve those loads.

The fact that FTRs are assigned to all firm servicecustomers based on specific receipt and delivery pointreservations does not change the nature of network services underthe PJM Transmission Tariff. FTRs serve a limited function ofallowing a transmission service customer to protect againstincurring transmission congestion costs, and do not transformnetwork service into point-to-point service. It is important tonote that the ~ forma tarif! was designed to replicate thenetwork integration service each utility had historicallyprovided itself within the confines of its individual servicearea. By allowing transmission service customers to integrateresources across eight utility systems, the PJM TransmissionTariff will permit customers to obtain a transmission service

li/ aaa, ~, DEMEC at 19 (Filed in Docket Nos. ER97-3189-000and EC97-38-000) .

http:/ /rimsweb l.ferc.fed. us/rims.qJrp2-rrintNPick 2001-05-16