Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of Resource as a Network Resource

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1 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network 1.0 Introduction This document contains the business practices Transmission Services & Compliance will follow in determining whether a particular resource qualifies to be designated and maintain its status as a Network under the Manitoba Hydro Open Access Transmission Tariff (OATT). These business practices are intended to supplement the Manitoba Hydro OATT and to the extent that there is a conflict between the Manitoba Hydro OATT and these practices, the OATT will apply. 2.0 General Inquiries For general inquiries regarding the OATT contact: Michael Fones, CET Tariff Administration Officer Transmission Services & Compliance Department Manitoba Hydro Phone (204) mfones@hydro.mb.ca Or Robin Rebillard, P.Eng., M.Sc.E.E. Tariff Administration & Rates Engineer Transmission Services & Compliance Department Manitoba Hydro Phone (204) rrebillard@hydro.mb.ca 3.0 Commentary: For greater certainty, a generating resource includes, but is not limited to, power purchase agreements, external resources, demand response resources, or intermittent generation resources and are all eligible to be designated as a Network. For on and off system resources, both capacity and energy resources are eligible to be designated as a Network. A generating resource need not have a firm fuel supply to be eligible for designation as a Network.

2 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network 4.1 Requirements for Designation of a as a Network : Pursuant to the OATT, there are several requirements that must be met in order for a resource to be (i) designated as a Network and (ii) once designated, maintain its status as a designated Network. If a resource that has been designated as a Network under the OATT at any time becomes non compliant with any of the qualifications or requirements contained within the OATT or in this BPM, the resource may lose part or all of its designation as a Network (in accordance with subsection 31.7 of the OATT). The Network Customer may terminate the designation of all or part of a generating resource as a Network upon one month s notice and upon approval of the Transmission Provider (in accordance with subsection 30.3 of the OATT). 4.2 Definition of a Network Pursuant to subsection 1.45 of the OATT, a Network only includes a designated generating resource or dedicated transmission equipment that is owned, purchased or leased by a Network Customer, and used to serve the load-serving entity s load on a firm basis, under Part III of the OATT. 4.3 Limitations on Availability: Pursuant to subsection 30.1 of the OATT, in order to be a Network, a resource or any portion thereof, must not be: (i) committed for sale by the Network Customer to nondesignated third party load (for a term of one (1) year or more) unless, and only to the extent that the seller has a contractual right to curtail the energy sold in order to maintain reliable service to the seller s Network Load; or (ii) purchased by the Network Customer pursuant to a power purchase agreement executed prior to January 1, 2017 that allows the seller to interrupt delivery of energy to the purchaser for economic reasons; or (iii) purchased by the Network Customer pursuant to a power purchase agreement executed on or after January 1, 2017 that allows the seller to interrupt delivery of energy to the purchaser for reasons other than Force Majeure. Notwithstanding the foregoing, output from a resource that is committed for sale for one (1) year or more by the Network Customer to non-designated third party load pursuant to a power purchase agreement that limits the amount and/or conditions of curtailment may qualify as a Network provided that such limitations are consistent with an interconnection or operating agreement between the Transmission Provider and the transmission service provider or operating entity of the region where the third party load is located.

3 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network 4.4 Transmission Service: Transmission Service for a Not Physically Interconnected with the Transmission Provider In order for a resource not physically interconnected with the Transmission Provider to be designated as a Network, the resource must have Firm Point-to-Point Transmission Service arranged from its point of interconnection to the Transmission Provider s system, in accordance with subsection 30.6 of the MH OATT Assessing Transmission System Capability for a Connected to the Networked Bulk Electric System through a Single Feed When a resource is connected to the networked bulk electric system (BES) through a single feed, additional factors must be considered to assess the capability of the transmission system to support firm generation from that resource. Loss of the connecting single feed is considered a single contingency and the Transmission Provider will consider two factors when assessing this single contingency: the length of the connecting single feed and the amount of generation loss. Generation loss will be calculated taking into account any offsetting load connected at the resource end of the single feed. The value of the offsetting load will be assumed to be 70% of the corresponding designated peak load value. Loss of firm generation in Manitoba should not exceed 150 MW for single contingencies of Direct Assignment Facilities (or the networked BES within Manitoba) greater than 10 km in length. Consider a resource that can generate a maximum of 200 MW with an offsetting load of 30 MW (designated peak load value). The resource and offsetting load are connected to the networked BES through a single feed as depicted below. BES single feed 30 MW Load 200 MW The transmission system may be capable of supporting all 200 MW of generation from the resource as firm generation if the single feed is less than 10 km in length. However, if the single feed is 10 km or greater in length then the maximum firm generation from the resource the transmission system can support is 171 MW (150 MW +.70*30 MW= = 171 MW).

4 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network 4.4 Generating Capacity Accreditation Requirements: Pursuant to subsection 30.1 of the OATT, there exists specific generating capacity accreditation requirements that must be met in order for a resource to qualify for and maintain its designation as a Network. a. Generating facilities must at all times comply with the Transmission Provider s Transmission System Interconnection Requirements (TSIR). b. The Network Customer must receive confirmation from the Transmission Provider that the interconnection transfer capability limits into Manitoba for the applicable interface as published on OASIS are not exceeded with the requested designation of the resource as a Network. c. For each generating facility designated as a Network, the Network Customer must demonstrate the ability of the Network to continuously generate the designated amount of such Network for a minimum of one hour at least once a year. This demonstration must be completed each year in the season/timeframe of maximum output for the resource. Generation Verification Test Capacity ( GVTC ) data, or historical output data for run-of-river resources or wind resources, for each Network shall be submitted by the Network Customer to the Transmission Provider on an annual basis by April Data Requirements: Application To apply to have a resource designated as a Network, Network Customers must: (a) for off system resources, complete and submit an Application on the Manitoba Hydro Electric Board (MHEB) Open Access Same-Time Information System (OASIS) site, complete and submit Specifications for Network Integration Transmission Service from Off-System Network in the form specified in Attachment F-2 of the OATT, and pay to the Transmission Provider the applicable fifty thousand dollar ($50,000.00) deposit pursuant to subsection 29.2 of the OATT, (b) for on system resources outside of the term of a Service Agreement for Network Integration Transmission Service, complete and submit an Application on the Manitoba Hydro Electric Board (MHEB) Open Access Same-Time Information System (OASIS) site, complete and submit Specifications for Network Integration Transmission Service from Off-System Network in the form specified in Attachment F-1 of the OATT, and pay to the Transmission Provider the applicable fifty thousand dollar ($50,000.00) deposit pursuant to subsection 29.2 of the OATT, and

5 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network (c) for additional on system resources (or an increase in output exceeding 1.0 MW of a designated Network ) during the term of a Service Agreement for Network Integration Transmission Service, complete and submit an Application to Designate Additional On System Network s in the form specified in Attachment H to the OATT pursuant to subsection 30.2 of the OATT Network Information Update Following designation, Network Customers must comply with the requirements set out in subsection 31.6 of the OATT for all designated Network s. In addition to timely written notice of material changes to any information provided in its Application relating to the Network Customer s Network s, Network Load and other aspects of its facilities or operations affecting the Transmission Provider s ability to provide reliable service, subsection 31.6 of the OATT requires an annual update by the Network Customer of information related to Network s as specified in the Business Practices Manual. The Transmission Provider confirms that the annual update of information related to Network s must be submitted by the Network Customer by April 20 of each year for each Network and shall be satisfied by completing and submitting the form(s) specified in section 5.1, 5.2 and 5.3 of this Chapter K, as applicable. The annual update of information related to Network s is applicable to existing Network s and is meant to verify existing Network designations. The Manitoba Hydro Open Access Interconnection Tariff specifies procedures to evaluate and interconnect new generating resources and procedures to evaluate and implement modifications to existing facilities. The maximum power capability and maximum MVA values, as submitted in the form specified in section 5.1 of this Chapter K, should be supported by existing facility model data Seasonal designation information In order to meet the requirement contained in the Specifications in Attachment F-1 of the OATT, the Specifications to Attachment F-2 of the OATT and Attachment H of the OATT to provide a description of the seasons for which the Network is available throughout the term the Network Customer must include information related to the months that comprise the season, the days committed within that season and the hours committed within those days Contractual Arrangements information In order to meet the requirement in subsection 29.2(a)(v) and in the Specifications to Attachment F-1 of the OATT and in Attachment H of the OATT to describe contractual arrangements the Network Customer must include information with respect to agreements with a term of one (1) year or more for the sale and delivery of power to non designated third party load from on

6 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network system resources Limiting Factor information In order to meet the requirement in the Specifications in Attachment F-1 of the OATT, the Specifications to Attachment F-2 of the OATT and in Attachment H of the OATT to provide a description of any limiting factors related to periods of restricted operations the Network Customer must include information related to any diversity exchange arrangements, the Network Customer s understanding of the current transmission system capability, etc.

7 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network 5.0 Network Data Submission Forms 5.1 On System s Generating Facilities Generating Facility Brandon Grand Rapids Great Falls Jenpeg Kelsey Kettle Laurie River Limestone Long Spruce McArthur Falls Pine Falls Pointe du Bois Selkirk Seven Sisters Slave Falls St.Joseph St.Leon Wuskwatim Designated Network level, adjusted to median head and ambient conditions, that is supported by attached data 1 Maximum Power Capability 2 Maximum MVA 3 Data to support desi gnated Netw ork l evel attached Generator Output Station Power (Station Service Load) ----MW ----MW ----MW --- MVA Check if yes 1 Designated Network level to be reported on a monthly basis 2 Maximum Power Capability to be reported on a generating unit basis as measured at the SCADA metering point 3 Maximum MVA to be reported on a generating unit basis as measured at the SCADA metering point

8 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network 5.2 On System s Contractual Arrangements for Sale and Delivery of Power to Non Designated Third Party Load Contract Name Execution MW Season Days and Hours Date of committed Committed Committed Contract Name/Parties Date --- MW month-month Eg. 4 peak hours and 2 off peak hours Slice of System or Unit Specific Eg. Unit 4 of --- Generating Station 5.3 Off System s Committed to serve Manitoba Load Contract Name Execution MW Season Days and Hours Date of committed Committed Committed Contract Name/Parties Date --- MW month-month Eg. 4 peak hours and 2 off peak hours Slice of System or Unit Specific Eg. Slice of System

9 Open Access Transmission Tariff Business Practices Manual Chapter K: Designation of as a Network

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