I. Tariff language for Transmission Losses Applied to Monthly Reported Network Loads: (for tariff)

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1 I. Tariff language for Transmission Losses Applied to Monthly Reported Network Loads: (for tariff) * MISO will add the underlined text provided by the Owners Committee to Section 34.2 of the Tariff with minor changes to use the defined term Transmission Provider and to not include Transmission Losses as a new defined term. The revised text is shown after the text in Section 34.2 below: 34.2 Determination of Network Customer s Monthly Network Load Version: Effective: 6/1/2011 A Network Customer s monthly Network Load is its hourly Load (60 minute, Hour); provided, however, the Network Customer s monthly Network Load will be its hourly Load coincident with the monthly peak of the pricing zone where the Network Customer s Load is physically located. Transmission losses refer to the loss of energy during the transmission of electricity from Generation Resources to Load, which is dissipated as heat through transformers, transmission lines, and other transmission facilities that are under the functional control of the Transmission Provider. When reporting monthly network coincident peak loads to MISO for billing purposes, load reporting entities will adjust Network Load to account for Transmission losses in accordance with MISO Business Practice Manual 012. II. BPM Transmission Losses Procedure: * MISO will add the underlined text provided by the Owners Committee to BPM-012 (Transmission Settlements) in Section after the discussion of Network Load. The revised text is shown after the text in Section of BPM-012 below: Schedule 9: Network Integration Transmission Service Overview MISO is required to provide Network Integration Transmission Service (NITS) according to the terms in Module B, Section III of the Tariff. Monthly Demand Charges for Schedule 9 service are assessed by MISO on all actual monthly Network Integration Transmission Service usage by Network Customer. The Monthly Demand Charge is defined as the NITS Schedule 9 charges. All registered MISO Transmission Customers granted Network Integration Transmission Services from MISO purchase Schedule 9 service from MISO. Transmission Customers purchasing NITS from MISO are also called Network Customers. This Transmission Service allows Network Customers to efficiently and economically utilize their Network Resources (as well as other non-designated generation resources) to serve their Network Load. 1

2 MISO provides Schedule 9 service equal to the Network Customer s monthly usage of MISO transmission system capacity and energy. This usage is determined by identifying the Network Customer s demand equivalent to its monthly Network Load. Network Load is defined by the Tariff as the Network Customer s hourly Load (60 minute, clock-hour) coincident with the monthly reported peak Load of the Transmission Owner where the Network Customer Load is physically located. Each entity reporting monthly peak Load files to MISO Transmission Settlements will calculate a Loss Percentage for its Transmission Pricing Zone that will be applied to Network Loads prior to reporting. This Loss Percentage will be calculated using coincident peak hours for a 12-consecutive-month historical period and will be based on S105 values for withdrawals and State Estimator losses reported on the Residual Load Account Statement. The statement is provided by MISO Energy Markets Settlements. The loss percentage will be effective for 12 months. Each reporting entity will determine the appropriate 12-consecutive-months and effective period based on factors including consistency with other reporting requirements (e.g. effective month of Attachment O updates) and will post its methodology on MISO s website. Entities that have not participated in the MISO market long enough to accumulate 12 months of S105 statements will provide a loss percentage and a methodology to MISO for approval. The formula for calculating the Loss Percentage is: LP = Losses + SE Withdrawals Losses SE Divide the Network Load, including applicable load served by Behind the Meter Generation and Grandfathered load, that has not been adjusted for Transmission Losses by one minus the Loss Percentage as follows: Billing Network Load = Non Loss Adjusted Network Load / (1-LP) Each load reporting entity should report Billing Network Load for each network contract to MISO for monthly billing purposes. 2

3 III. BPM Language related to Loads Served by Behind the Meter Generation (BTMG) * MISO will add the underlined text below provided by the Owners Committee to BPM- 012 (Transmission Settlements) in Section (Data Requirements). The Schedule 9 charges are obtained by applying the effective annual Schedule 9 zonal rate to the Network Customer s Load including losses. By definition, a Network Customer s Network Load can only be determined after the fact, when all Transmission Owners report the Network Customer s monthly peak loads coincident with their zonal peak. This may not be coincident to MISO s peak Load. Unless designated to be served by Point-To-Point Transmission Service, all Network Customer Load is reported as Network Load. This includes Grandfathered Load, Load served by Behind-the-Meter Generation (BTMG) that is registered with MISO, and any load served by unregistered BTMG with a total aggregate installed nameplate capacity connected to a single premise that exceeds a 5 MW threshold. Individual Transmission Owners may adopt a lower threshold by posting such threshold on the MISO OASIS. This lower threshold will not be less than 1 MW. All firm loads shall be reported. To the extent that there are traditional GFA prohibitions or physical or contractual circumstances at or behind a delivery point that may limit the amount of load that would be served via the MISO transmission system if the BTMG was not generating, then those special circumstances will be verified on a case by case basis by the Transmission Provider. In these special circumstances reported load will not exceed the load that would be served from the Transmission System including losses if the BTMG was not generating. This language pertains to billing for AC Network Integration Transmission Service (NITS) only. 3

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