April 11, 2016 VIA ELECTRONIC FILING

Transcription

1 April 11, 2016 VIA ELECTRONIC FILING The Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C Re: Southwest Power Pool, Inc., Docket No. ER Submission of Transmittal Letter Dear Secretary Bose: Southwest Power Pool, Inc. ( SPP ) hereby submits to the Federal Energy Regulatory Commission s ( Commission ) the transmittal letter in this proceeding on. 1 SPP is supplementing the March 31 Filing with the attached transmittal letter because it was inadvertently omitted when the filing was submitted. With this submission, SPP is not asking to modify the Network Integration Transmission Service Agreement and Network Operating Agreement that were submitted in the March 31 Filing. Other than including the transmittal letter, all other aspects of the March 31 Filing remain unaffected by this supplemental information. Respectfully submitted, /s/ Tessie Kentner Tessie Kentner Southwest Power Pool, Inc. Attorney for Southwest Power Pool, Inc. 1 Submission of Network Integration Transmission Service Agreement and Network Operating Agreement, Sw. Power Pool, Inc., Docket No. ER (March 1, 2016) ( March 31 Filing ).

2 Secretary Federal Energy Regulatory Commission 888 First Street NE Washington, DC RE: Southwest Power Pool, Inc., Docket No. ER16- Submission of Network Integration Transmission Service Agreement and Network Operating Agreement Dear Secretary Bose: Pursuant to section 205 of the Federal Power Act, 16 U.S.C. 824d, and section of the Federal Energy Regulatory Commission s ( Commission ) regulations, 18 C.F.R , Southwest Power Pool, Inc. ( SPP ) submits: (1) an executed Service Agreement for Network Integration Transmission Service ( Service Agreement ) between SPP as Transmission Provider and Nebraska Public Power District ( NPPD ) as Network Customer ( Sixth Revised NPPD Service Agreement ); and (2) an executed Network Operating Agreement ( NOA ) among SPP as Transmission Provider and NPPD as both Network Customer and Host Transmission Owner ( Sixth Revised NPPD NOA ). 1 The Sixth Revised NPPD Agreements modify and supersede the Service Agreement and NOA 2 which conformed to the pro forma NITSA and pro forma NOA, reported solely in SPP s electric quarterly report ( EQR ). 3 The Sixth Revised NPPD 1 The Sixth Revised NPPD Service Agreement and Sixth Revised NPPD NOA are referred to collectively as the Sixth Revised NPPD Agreements, and SPP and NPPD are referred to collectively as the Parties. The Sixth Revised NPPD Agreements are designated collectively as Sixth Revised Service Agreement No The Service Agreement and NOA being modified and superseded are referred to herein as the Fifth Revised NPPD Service Agreement and the Fifth Revised NPPD NOA and collectively as the Fifth Revised NPPD Agreements. 3 See Revised Public Utility Filing Requirements, Order No. 2001, FERC Stats. & Regs., Regs. Preambles 31,127, reh g denied, Order No A, 100 FERC 61,074, reconsideration and clarification denied, Order No B, 100 FERC 61,342, enforcing, Order No C, 101 FERC 61,314 (2002), enforcing, Order No D, 102 FERC 61,334, order on clarification, Order No E, 105 FERC 61,352 (2003), order on clarification, Order No F, 106 FERC 61,060 (2004), order adopting EQR data dictionary, Order No G, 120 FERC 61,270, order on reh g and clarification, Order No H, 121 FERC 61,289

3 Page 2 Agreements submitted herein conform to the standard forms of service agreements set forth in the SPP Open Access Transmission Tariff ( SPP Tariff ). 4 SPP is submitting the Sixth Revised NPPD Agreements to the Commission due to NPPD s request for a waiver of Section 30.2 of the SPP Tariff. I. Background NPPD is a public corporation and political subdivision of the State of Nebraska. It is not a public utility as defined by the Federal Power Act. NPPD is governed by an 11 person Board that is publicly elected from all or parts of 86 of 93 counties in Nebraska. NPPD is engaged in the generation, transmission and delivery of electric power and energy to wholesale and retail customers throughout the state of Nebraska. To serve load within the SPP transmission system, NPPD takes Network Integration Transmission Service ( Network Service ) from SPP pursuant to the Fifth Revised NPPD Agreements. The Western Area Power Administration Upper Great Plains Division ( Western-UGP ) supplies energy from Federal hydropower projects to certain customers ( Preference Power Customers ) within the state of Nebraska. NPPD facilitates the transmission delivery of the Western-UGP power to the Preference Power Customers, utilizing two arrangements that have been designated as GFA 501 and GFA 502 on Attachment W of the SPP Tariff. SPP understands that over the past year, the Preference Power Customers have assigned these power supply contracts to NPPD. Through this process, NPPD desires to convert the transmission delivery to the Preference Power Customers from GFA service to SPP Network Service. NPPD has represented to SPP that the power supply contracts assigned to NPPD meet the definition of a Designated Network Resource in the SPP Tariff. As a result, NPPD would like to utilize SPP Network Service to deliver this Western-UGP power to the Preference Power Customers who have assigned their rights to receive such power to NPPD. In order to effectuate this conversion, NPPD has requested the inclusion of the power supply contracts and the assignment agreements that transfer rights from the Preference Power Customers to NPPD as Designated Network Resources in the Sixth Revised NPPD Service Agreement. Section 30.2 of the SPP Tariff requires that all requests for new Designated Network Resources with a term of one year or longer be evaluated under SPP s Aggregate Transmission Service Study ( ATSS ) process in Attachment Z1 of the SPP Tariff. (2007), order revising EQR data dictionary, Order No I, III FERC Stats. & Regs., Regs. Preambles 31,282 (2008). 4 See Southwest Power Pool, Inc., FERC Open Access Transmission Tariff, Sixth Revised Volume No. 1 at Attachment F ( pro forma Service Agreement ) and Attachment G ( pro forma NOA ), collectively the pro forma Agreements.

4 Page 3 II. Waiver NPPD desires to add the new Network Resources to serve the Preference Power Customer load without being subject to SPP s ATSS process due to the nature of the request. The purpose of adding the new designated Network Resources is simply to identify NPPD s contractual rights obtained from 27 Preference Power Customers and Western-UGP in its Sixth Revised NPPD Service Agreement. While the individual Preference Power Customers will no longer be contracting separately with NPPD, SPP understands that no actual change will occur. It is SPP s understanding that the same Western-UGP resources will supply the power over the same transmission system to the same Preference Power Customers, before and after the contractual assignments. To effectuate NPPD s request, a waiver of Section 30.2 of the SPP Tariff is necessary. In the past, the Commission has granted waivers where (1) the underlying error was made in good faith; (2) the waiver was of limited scope; (3) a concrete problem needed to be remedied; and (4) the waiver did not have undesirable consequences, such as harming third parties. 5 The waiver request satisfies each of these factors, and therefore should be approved. First, the waiver requested is for a specific request from NPPD to convert GFA service to SPP Network Service in order to modify the Fifth Revised NPPD Agreements to accommodate the long-term arrangement reflected in GFA 501 and GFA 502. SPP is not seeking a blanket authorization or tariff revision regarding the requirements of Section 30.2 or the ATSS process. Second, the waiver will remedy NPPD s need to convert the GFA Service to SPP Network Service. Third, the waiver will not have undesirable consequences nor will there be any harm to third parties. SPP does not expect a significant impact to the transmission system as a result of the conversion of the GFA Service to SPP Network Service. Additionally, the modification of the Fifth Revised NPPD Agreements will be revenue-neutral to SPP and the SPP Transmission Owners and will have no impact on other Transmission Customers. Finally, there was no error involved. Thus, SPP s request to waive the requirements of Section 30.2 of the SPP Tariff in order for NPPD effectuate the conversion of GFA service to SPP Network Service by adding new designated Network Resources to the Fifth Revised NPPD Service 5 ISO New England Inc., 117 FERC 61,171, at P 21 (2006); see also Sw. Power Pool, Inc., 138 FERC 61,200, at P 5 (2012) ( The Commission has granted such waivers where good cause for a waiver of limited scope exists, there are no undesirable consequences, and the resultant benefits to the customers are evident. ); PJM Interconnection, L.L.C., 128 FERC 61,162, at P 8 (2009) ( [W]e find that PJM s requested waivers are of limited scope, address a concrete problem that needs to be remedied, and will not have undesirable consequences, such as harming third parties. ).

5 Page 4 Agreement satisfies the Commission s requirements for a waiver, and therefore, should be approved. III. Sixth Revised NPPD Agreements The Sixth Revised NPPD Agreements reflect the changes to Appendix 1 of the Fifth Revised NPPD Service Agreement necessary to effectuate NPPD s request to convert the GFA service to SPP Network Service by adding new designated Network Resources. If the Commission approves the waiver of Section 30.2 of the SPP Tariff, SPP requests that the Commission accept the Sixth Revised NPPD Agreements submitted herein. IV. Effective Date and Waiver SPP requests an effective date of March 1, 2016, for the Sixth Revised NPPD Agreements. To permit such an effective date, SPP requests a waiver of the Commission's 60-day notice requirement set forth at 18 C.F.R Waiver is appropriate because the Sixth Revised NPPD Agreements are being filed within 30 days of the commencement of service. 6 V. Additional Information A. Information Required by Section of the Commission s Regulations, 18 C.F.R : (1) Documents submitted with this filing: In addition to this transmittal letter, SPP includes the a clean copy of the Sixth Revised NPPD Agreements. (2) Effective Date: As discussed herein, SPP respectfully requests that the Commission accept the Sixth Revised NPPD Agreements with an effective date of March 1, (3) Service: SPP is serving a copy of this filing on the representatives for NPPD listed in the Sixth Revised NPPD Agreements. 6 See Prior Notice and Filing Requirements Under Part II of the Federal Power Act, 64 FERC 61,139, at 61,983-84, order on reh g, 65 FERC 61,081 (1993) (the Commission will grant waiver of the 60-day prior notice requirement if service agreements are filed within 30 days after service commences. ); see also 18 C.F.R. 35.3(a)(2).

6 Page 5 (4) Basis of Rate: B. Communications: All charges will be determined in accordance with the SPP Tariff and the Sixth Revised NPPD Agreements. Copies of this filing have been served upon all parties to the Sixth Revised NPPD Agreements. Any correspondence regarding this matter should be directed to: Tessie Kentner Attorney Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, AR Telephone: (501) tkentner@spp.org Nicole Wagner Manager - Regulatory Policy Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, AR Telephone: (501) jwagner@spp.org VI. Conclusion For all the foregoing reasons, SPP respectfully requests that the Commission grant a waiver of Section 30.2 of the SPP Tariff and accept the Sixth Revised NPPD Agreements with an effective date of March 1, Respectfully submitted, /s/ Tessie Kentner Tessie Kentner Attorney for Southwest Power Pool, Inc.